Procurement Risk:
Very High
Score:
29/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. The Public Procurement Act of 2006 (PPA) and the Public Procurement Regulations of 2008…
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Section 63(3) of the Public Procurement Act addresses violations in the form of misconduct or corruption, for which it recommends departmental action [1]. However,…
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There is not enough evidence to score this indicator. It is alleged that both the PPA and DP-35 are adjusted/adapted, or exceptions granted, for…
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Q58
42/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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The formal procurement system of the Armed Forces is clearly laid out in a flowchart, which details 14 stages of procurement action as well…
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The defence procurement cycle is only disclosed in a generalised manner [1].
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The Armed Forces Procurement Policy of 2010 outlines detailed steps for implementing the stages of the procurement cycle [1,2]. There is no evidence to…
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Q59
38/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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The Defence Audit Directorate (DAD) is responsible for conducting audits of all offices under the Ministry of Defence, including all units and formations under…
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There is not enough information to score this indicator. Without access to the official proceedings of the Public Accounts Committee [1], it is not…
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Procurement oversight mechanisms are entirely non-transparent about their activities. An online search for media reports or official documents regarding public announcements of contract cancellations…
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In 2012, Bangladesh began a military modernisation programme entitled Forces Goal 2030, with the aim of transforming its defence forces into a three-dimensional force.…
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The full details of Forces Goal 2030 have not been officially disclosed, however, the Prime Minister, who is also the Minister of Defence, recently…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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The rules of Defence Purchase 35 (DP-35) [1] outline details of procedures and standards for conducting business with the Ministry of Defence. The registration…
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This indicator is marked Not Applicable, as there is no evidence of any formal integrity-related policies that are used in the selection of suppliers…
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Q63
50/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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Bangladesh does not have a formal national security or defence strategy. The second defence policy was approved in 2018, after a long gap since…
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Both the D-10 (Budget) and D-20 (Audit) sections within the Ministry of Defence [1,2] scrutinise the annual budget requirements submitted by its 25 entities,…
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The Ministry of Defence and Armed Forces Division decide their major purchases based on the clearly identified requirements submitted by various entities such as…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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According to the Procurement Policy of 2010 [1], there are now three systems of purchases in operation: open competition, single source and Government-to-Government purchases.…
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Neither Parliament nor the Defence Audit Directorate scrutinises the competition procedure. It is overseen by the Armed Forces Division [1].
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Q65
0/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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Tender committees operate under the DP-35 rules [1], which do not include any provisions on conflicts of interest or codes of conduct.
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According to the Defence Audit Manual [1], tender specifications, as well as documents on the selection of suppliers and awarding of contracts, are auditable…
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While DP-35 [1] is available online, provisions on conflicts of interest and codes of conduct are not publicly available, nor there is any assessment…
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Neither Parliament nor the Defence Audit Directorate scrutinises the competition procedure [1]. There is no evidence of external verification.
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Q66
25/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Section 30 of DP-35 [1] prohibits collusion, but it is limited to bidders only.
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As per Section 30 of DP-35 [1], the Secretary of the Ministry of Defence has the final say on cancelling contracts when allegations of…
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Although DP-35 outlines such a process [1], there is no information about the blacklist or debarment list on the DGDP or MoD websites [2,3]…
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There is no training provided for procurement officials [1].
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Contract Delivery and In-Service Support
Q67
33/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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DP-35 [1] outlines the full process for the monitoring, assessment, inspection and reporting of suppliers’ delivery obligations. There is also an arbitration system in…
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Contracts are not publicly available and are covered by the Official Secrets Act of 1923, as per Section 30 of DP-35 [1]. Nor does…
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There is no official or public information to suggest that procurement offices have been regularly conducting reporting and delivery obligations [1,2].
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DP-35 authorises the Secretary of the Ministry of Defence to take action in the event of a breach of contract [1]. In the absence…
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Q68
63/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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On the Ministry of Defence website, the procedure for filing a complaint online via the Grievance Redress System (GRS) is clearly outlined [1]. The…
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The MoD’s GRS [1] is available online, meaning it is easily accessible and can be used free of charge. However, there is ample scope…
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The absence of any complaints of malpractice in procurement during the last 2 years [2] indicates either that the official GRS system is not…
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Under Section 30 of DP-35 [1], the Secretary of the MoD has the legal power to cancel contracts or debar a company when allegations…
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DP-35 outlines the process of investigation, however, in the absence of any official reports on the blacklist or debarment list, which is authorised by…
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The DGDP does not provide a publicly available debarment list. The debarment list of the Central Procurement Technical Unit (CPTU) [1] does not contain…
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Offset Contracts
Q70
NEI/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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Bangladesh does not have any law that regulates offset contracts for defence purchases. An online search yielded zero results for Bangladesh offsets guidelines [1].
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There is not enough information to score this indicator due to the lack of public information on offset contracts. It is also not clear…
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There are no formal policies or procedures that outline the reporting and delivery obligations for offset contracts [1].
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There is not enough information to score this indicator as it was not possible to ascertain whether any offsets occur. No publicly available information…
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There is not enough information to score this indicator as it was not possible to ascertain whether any offsets occur [1].
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There is not enough information to score this indicator as it was not possible to ascertain whether any offsets occur [1]. In the absence…
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In the absence of any verifiable official records, it was not possible to conclude whether offset contracts, if any occur, are conducted through open…
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Agents / Brokers
Q73
NEI/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing Package
Q74
25/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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In 2013, Bangladesh and Russia signed a USD 1 billion arms deal for the purchase of Russian weapons and technology [1]. In 2018, Bangladesh…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Bangladesh has recently attained a significant geopolitical strategic position for two reasons: first, the…
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This indicator is not assigned a score in the GDI. Bangladesh has always pursued a foreign policy of ‘friends to all and malice to…
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This indicator is not assigned a score in the GDI. Domestic politics is fully under the control of the incumbent government. Hence, domestic political…
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