“Rebecca Ellinor, managing editor, Supply Management” width=”100″ height=”100″ />Knowledge is power, as the saying goes, and an awareness of the past performance of suppliers would certainly be useful for purchasers considering using their services.
While MPs in the UK have recently called for a list to be created that names and shames companies failing to deliver on government contracts, this already exists in some countries.
The procurement profession is less than 10 years old in Uganda, where the Public Procurement & Disposal of Public Assets Authority (PPDA) regulates public sector buying. There, contractors that have failed in their obligations are blacklisted to ensure government departments don’t use the same firms or people.
PPDA executive director Cornelia Sabiiti tells SM (see the interview in the next issue of the magazine) that a list of suspended providers has been in place since the passing of the PPDA Act and birth of the authority in 2003.
This is how it works: a recommendation to suspend a provider is submitted to the authority in writing by the contracts committee of a procuring and disposing entity. During the period of suspension, the provider is prohibited from engaging in any public procurement or disposal process nationwide. The suspension is not limited to the firm alone, but also includes its directors and any successor. The amended Act now gives powers to PPDA to suspend a provider on its own initiative without waiting for any government department to make a complaint.
Regular procurement audits helps departments iron out issues before they get out of hand, but if performance is poor, it is recorded and shared to prevent others making the same mistake. As of 1 September, there were 37 providers on the suspension list, which is freely available on the PPDA website.
And in nearby Tanzania, its Public Procurement Regulatory Authority has published three lists of blacklisted firms and individuals blocked from bidding for deals. These lists are from the World Bank, the PPRA itself and from the PPDA in Uganda.
Does your organisation share details of failed suppliers?