Cox: ‘Transparency, Fairness, Equity’
Premier Paula Cox today [Jan.16] provided a briefing on Government’s Office of Procurement and Project Management initiative, saying steps were underway to ensure Bermuda followed international best practice when it comes to how taxpayer funds are spent.
Unveiled last year, the Premier has described the new office as “yet another pillar in our efforts to strengthen financial accountability in Government.”
The office will “ensure that there is no bias in the tendering process; that Government will obtain value for money; and there is adequate oversight of capital projects.”
The Premier today said the second phase of the new legislation will be tabled in the next session of Parliament. It will broaden the definition of conflict of interest when it comes to the awarding of public contracts, extend “whistle blower” protection and ensure that money paid to those receiving grants is being used for the purpose for which it was authorised and more.
The Premier said, “The Bill will further enhance good governance and transparency and will further underscore the message that this Government adheres to the high standards of ethical behaviour — transparency and accountability; fairness and equity; efficiency and effectiveness; respect for the rule of law.”
The Premier’s full statement follows below:
Good afternoon,
I am pleased to provide you today with an update on the work being done by the Office of Project Management and Procurement [OPMP] and their achievements in relation to the awarding of Government contracts and procurement.
I want to also take this opportunity to announce that the second phase of the Good Governance legislation will be tabled in the next session of Parliament and will include the following proposed amendments:
- Extending and expanding on the conflict of interest offence when awarding contracts;
- Creating an offence of collusion by contractors and vendors bidding for contracts attempting to gain an advantage in the tender process by colluding with or obtaining information from public officials;
- Extending “whistle blower protection” to persons that are not included in the Employment Act, including contractors, vendors and part-time or temporary staff and any other person that becomes aware of potential wrong-doing;
- Enhancing the processes to ensure that money paid to vendors, contractors and organisations receiving grants is being used for the purpose for which it was authorised
- Introducing legislation outlawing the provision of inducements whether in the public or private sector.
The Bill will further enhance good governance and transparency and will further underscore the message that this Government adheres to the high standards of ethical behaviour – transparency and accountability; fairness and equity; efficiency and effectiveness; respect for the rule of law.
I am now turning to the work being done by the Office of Project Management and Procurement. Last week, I introduced the Incentives for Job Makers, the focus of which was directed to International Business. The work being done by the Office of Project Management and Procurement to improve the awarding of contracts can be categorised as Incentives for Small Businesses.
A great deal of work has been done by the Interim Director of Project Management and Procurement, Mrs. Janet Albion, to improve the awarding of contracts. The Procurement Code of Practice has been completed and is being reviewed by the senior officers in the Ministry of Finance and the Director of Internal Audit. The Code of Practice provides the rules of engagement for all bidders and will also be available in the tender package and the Ministry of Finance website.
Once the document is signed off, it will be sent to the Attorney General’s Chambers to create regulations which will be gazetted later this month. One of the most significant achievements of the office is changing the criteria of the evaluation of contracts to level the playing field and provide opportunities to small businesses, particularly those contractors that have graduated from the incubator programme held by the Bermuda Economic Development Corporation [BEDC] previously known as the Bermuda Small Business Development Corporation.
The new evaluation process is designed to reduce the bias towards the larger firms and provide more opportunity to smaller companies, specifically those whose staff are mainly Bermudian. In the past, evaluations were geared to awarding contracts based on cost, which comprised 70% of the weighting. The new evaluation is weighted, as follows:
- 50% weighting to the bidder’s qualifications and experience to meet the requirements of the job; having the resources and ability to deliver the requirements of the tender on time; have positive references that can attest to the quality of their work; and a good track record in health and safety. Suppliers bidding for a government contract for the first time will not be penalised for failing to score in the experience category. Instead referees will be used to build up a picture of competence and new businesses will be awarded an average points score so they have the ability to prove themselves;
- 30% weighting to the tender price; their stable financial position and are not in arrears in the payment of employment tax, social insurance and health insurance;
- 20% weighting to the number of the Bermudian staff and their programmes to training and development of Bermudians. Extra points are given to any supplier who has successfully completed the Construction Incubator programme – and we encourage all small businesses to take part in this.
The new evaluation is published with the tender documents and will be included in the Procurement Code of Practice.
A database of performance of government suppliers will also be built up over time, and feedback on performance will be given to all bidders at the end of a contract to allow them to identify any weaknesses and address them. If the relevant businesses correct any deficiencies, they will be considered for future contracts but ONLY if the Office of Project Management and Procurement are satisfied that they have succeeded in correcting their deficiencies.
The new organisation of the Office of Project Management and Procurement has been approved and they are currently finalising the job descriptions in order to start recruitment.
A critical element of the Office of Project Management and Procurement’s new structure is the recruiting of project managers which will provide direct management of more complex projects allowing for the increased use of smaller businesses. This is intended to spread the wealth and reduce the risk of over- reliance on large general contractors.
This new regimen has already yielded success. There are a number of small businesses that have been invited to tender for the supply of windows, doors, flooring, painting, plastering and plumbing. One small businessman, who up to this point had been a subcontractor and had to lower his hourly rate to accommodate the general contractor, has now been hired directly by the Government as a site manager for a current project, the Co-Ed project.
This project also employs six small contractors. Another small contractor is building a custom unit in the Supreme Court and there is currently a tender for furniture for Lefroy House. Another graduate of the Construction Incubator programme has been selected for the renovation of the office that houses the Maritime Services Department.
The initiative to provide opportunities to small contractors has provided welcome relief to small Bermudian businesses. In fact, an employee of a small business made the following comment on the “Bernews” website in response to the announcement by the Minister of Economy Trade and Industry regarding her efforts to provide employment for Bermudians, and I quote: “Would also like to add that the small business I work for has benefited from the new tender papers that Ms Albion [Janet Albion, Interim Director of Office of Project Management and Procurement] has put in place in the Procurement office. We used the Incubator at BSBDC and got real good advice.”
Another exciting initiative that is being led by the Office of Project Management and Procurement is evaluating contracts for goods and/ or services which are common across all government departments, such as paper, vehicle tyres and maintenance, toner. This is another area where the Government can spread the wealth.
Traditionally these contracts are tendered and awarded to one contractor for a year. The Office of Project Management and Procurement are considering changes to this procedure, such (a) as fixing a standard price for each type of goods and giving the Departments the freedom of choice of supplier but only at the set prices (b) awarding the tender to more than one supplier to service the contract either on a geographical basis at various locations through the island or by breaking the requirements into lots (for example, high performance tyres for police, health, transport, standard tyres for other vehicles (such as GP cars).
In this challenging environment, these changes will benefit a number of suppliers, particularly small businesses while ensuring that Government is obtaining the best value for money. Once they have completed their evaluation and consultation with various suppliers, the Department will make a recommendation to the Financial Secretary and to me in my role as Minister of Finance for approval.
Finally, you would have heard my statement at the news briefing last Thursday that major projects will be closely examined. In accordance with international best practice, the Office of Project Management and Procurement is enhancing its tendering package. Specifically bidders will be asked to certify that:
- they have not fixed or adjusted the amount of the Tender or the rates and prices quoted by or under or in accordance with any agreement or arrangement with any other person;
- they have not received any additional information that was not made available to all bidders.
- they have not sought to:
- collude to fix the tender amount to obtain favourable advantage;
- offer an inducement directly or indirectly to a person involved in the decision to award the contract.
If a bidder is found to be involved in such a scheme, there will be strong sanctions. In the future, once the Bill has been passed, the bidder would also be guilty of an offence.
These changes will provide incentives to local job makers and will also enhance good governance and transparency.
I will now take your questions.
Of course, all the new tenders will be read under the government’s new special, energy efficient, cost effective LED lighting.
Nothing wrong with LED lighting you just need someone who knows about LED lighting in order and install the correct lights.
LOL
Confirmation from the Premier that there has been unethical, at best, behaviour or why is this Legislation needed after 13 years of PLP Governance? Had there been unethical behaviour prior to 1998 this Legislation would have been tabled years ago.
There was unethical behaviour before 1998, but the people who ran the country back then were smart enough to keep their mouths shut about the back deals that went on. Anyone who reports it didn’t happened is a born again FOOL! The whites back then kept it hush hush and were smart enough to play the game!!
Black people in general want to get all their ace boys in to include them when making money. Plus we talk about it and brag. To many hands in the PIE someone is going to get caught.
too little too late to close the stable door when the horse got out 4 years ago. Can’t help but wonder if a couple of construction company bosses help to put it all together.
@ Shaking the Head
So you honestly believe that the previous Government did everything above board. This from the Government, who purchased ALL vehicles from ?, had them insured where.
And the list goes on and on and on.
I would bet that there have been shady deals going on since the Sea Venture struck those rocks, that doesn’t excuse it still happening today does it?? By the way so from whom should they have bought and insured vehicles back then, your dealership? surely any other dealerships would’ve been the from the same people right ??
Oh yeah that’s right there’s no proof of corruption today just like back then … Yawn.
When the UBP were in power there was a requirement for 3 or more bids for contracts. This was a check to ensure the government got the best price on jobs. May have not been perfect, but at least they recognised the need for good practice. When the PLP came into power, this practice got pushed to the side. Same in planning where ministers told planning officers what to do.
So from that point of view all the checks and balances to limit shady deals were removed during PLP’s reign and why now they are broke.
Corruption is always something of temptation for people in positions of power, but in the previous era the government being business savy knew that ultimately rules need to be in place otherwise you have trickle down corruption like we have now.
If corruption was as blatent back then as some accuse, we’d have McDonalds for sure. Also when the PLP came into power they would have asked for transparency and opened investigations.
I agree. All the PLP dillybop, knuckle-draggers do is say, “well the UBP did it too, blah, blah, blah.” Of course the UBP had corruption, but the PLP take the cake. At least the UBP had people intelligent enough to know that you can’t keep stealing from the people and blowing all our money and expect us not to go broke.
I’m so tired of the PLP. I just hope all the morons out there that eat up everything she says (and that’s another thing, I can’t stand how this woman talks!) get smart and DON’T vote PLP in the next election.
Think about it-please stop that name calling stuff, you have good points but honestly that is just wrong!
Cox is trying to be more OBA than the OBA…that will never happen. PLP is the same hardcore same ol people. Her new candidates are ex-UBP candidates who have been placed in areas where they cannot win. A vote for PLP is a vote for failure.
“If the relevant businesses correct any deficiencies, they will be considered for future contracts but ONLY if the Office of Project Management and Procurement are satisfied that they have succeeded in correcting their deficiencies.”
This is a joke, right? Someone from the Civil Service is going to tell the private sector how to fix their deficiencies??? Start with the man in the mirror. The Civil Service is by far the WORST paying customer to service providers. They are normally over 60 days in paying invoices. In order to get a measly piece of work done (say $2,000), you have to wait for Government accountants, lawyers and project managers to review contract wording, all at rates so high that it surpasses the cost of the contract itself. Small businesses cannot afford to float Government departments and that is why they cannot bid on large/medium projects.
Streamline the Government. The small businesses will sort themselves out.
I agree. I always wondered how it is that if I am 1 day late in paying payroll tax then I pay a 5% penalty for that OBE day – but the goverment can take their sweet time paying small business and pay nothing extra when they are late themselves. If you complain, you run the risk of not getting any future work.
More PLP FAIL.
Cox: ‘Transparency, Fairness, Equity’ = Very Large YAWN!!
very large yawn also!!!! I saw our premier in person the other day she needs to listen to E. Michael and Gina when the have Connie on their show….Thank you Z.B.M. this is a very informative show, and E. Michael and Gina are fantastic…
Any steps to improve the oversight of Government spending should be applauded, however it is important to remember that sickening amounts of taxpayer money are wasted every day on paying civil servants who are in many cases unnecessary/unqualified/incompetent.
Until processes are put in place to address this problem, which is rarely talked about, yet does of course contributes toward one of Government’s most substantial ongoing costs, it is hard to believe any serious efforts are being made toward reigning in spending.
Before anyone jumps to defend the civil service, yes there are many qualified/highly competent individuals who should be commended, but speaking as a civil servant, it would be totally untrue to state that there is not a significant institutional problem in terms of the actual amount and quality of work that is achieved by many departments, considering some of the salaries which are paid.
This is the crux that I don’t think Cox is willing to address. I have worked in and with the civil service for many years, and there are so many teams of people who are working at 50% productivity and nowadays their salaries in general are very high. The entire civil service could take a 10% pay decrease and still be doing well compared to the local private sector.
does this culture of transparency apply to the spouses of MPs? or spouses of MPs who do things that the MP then benefits from?
being a good contractor that has paid all my taxes and struggled through this 3 year recession, l can tell you l have had zero help from this transparent government. I have seen yahoo’s that don’t even know the trade doing works at the hospital, government buildings etc…..
no help because l am white. thanks MS transperancy……youlie to your own, not me!
and speaking of transparency where is the Public Access to Information legislation? that was passed in 2010 …as usual with this Government they talk about it but never actually do it…….they talk about it a lot during an election campaign…..and the sheeple keep on believing them…..
Enough with the references of PLP supporters being sheep or dumb. You win no one over with this type of BS. I agree with them on this cause it’s the same argument why whites don’t join the PLP. Generally being nasty to people does not work when we should be trying to pick Bermuda up out of the hard times we are in. Do you care about this country or not? Stick to the issues please.
LOL
They are sheeple to me and not very bright ones at that…if anyone keeps believing what this government spews then they have to be sheep or maybe leemings is more appropriate but I struggle to combine leemings with people so sheeple works for me….
sorry meant to say lemmings….
sheeple – LMAO!!
If you want to continually criticize the previous Government, please remember that they ran the country “in the black” without putting the country in serious debt (and that was through recessions as well), most politicians rode their motorbike to work, the government fleet of cars was small, the civil servant workforce was half the size it is today. If there was anything like nepotism or kick backs going on, does it make it OK for the PLP to do it by saying “it’s our turn now”? No. We all grew up knowing two wrongs don’t make a right. So quit making this lame comparison.
We all watched the former Premier make a big show of PATI legislation and transparency. Meanwhile he continued to do just as he pleased. Where is that PATI legislation now?
Retroactive?
I’m surprised by the negativity of the comments here. Surely admitting there is a problem and trying to fix it is only a good thing – but maybe I’m a glass half full person. I’ve said on other threads, I work for a small company, my boss got off his *** and went to see Ms Albon, she advised him on the Incubator, we done that and we have got work out of it. How many of you have done that? Don’t knowck it till you’ve tried it.
Transparancy????
Ya right!!!
Why has the Auditor General’s report not been tabled?
What’s the hold up with this report? Why hasn’t the Public Accounts Committee not met?
…….Oh, I’m sorry. I forgot an election is due. Gumumint can’t let the voters know the truth. Transparency?
This goverment is as transparent as frozen split pea soup!!!
Eastern . guess what these jokers are getting away with this $%^&.
I hope Heather Jacobs is paying attention !! and is in talks with our Governor..
I would like to see an end to the millions of dollars that leave our island via government granted contracts that could and should remain local. One glaring example is one that we all see every time we travel: I wonder if one of our ‘local’ banks really knows where all of that money (hundreds of thousands of dollars) for the airport advertising contracts really goes…crony capitalism and fake storefront businesses must go…its time to bring this one home…
and while we are at it why do Marc Bean and Michael Weeks and at least 4 civil servant need to go to Miami for the KPMG Infrastructure Summit(whatever that is) when one was held in Bermuda in September? didn’t you take notes? 6 people in Miami for 4 days?
In other words…drink, drink, drink!
WoW Great sounding election Phase. The PLP has never cared about how they managed the taxpayers money
If the Government are trying so hard why are people being given multiple contracts despite the fact they screw them up…case in point is the ETM company, they overcharged the taxpayer big time on LED lighting for Government buildings, had to remove the lights after people got sick but are STILL being awarded contracts by Government and then theres the case of twenty million over budget dock at dockyard which is falling apart ,have we all forgotten already?? this is not fairness nor is it good Goverment action…fix it and we might listen