Procurement Risk:

Very High

Score:

29/100

Government Policy

Collapse
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?

View Question
Legal framework Score: NS / 100
This indicator is not assigned a score in the GDI. The Public Procurement Act of 2006 (PPA) and the Public Procurement Regulations of 2008…
Explore
Corruption risks Score: 0 / 100
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,…
Explore
Effectiveness Score: NEI / 100
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…
Explore
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?

View Question
Formal procedures Score: 75 / 100
The formal procurement system of the Armed Forces is clearly laid out in a flowchart, which details 14 stages of procurement action as well…
Explore
Transparency Score: 25 / 100
The defence procurement cycle is only disclosed in a generalised manner [1].
Explore
Implementation Score: 25 / 100
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…
Explore
Q59 38/100

Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?

View Question
Independence Score: 75 / 100
The Defence Audit Directorate (DAD) is responsible for conducting audits of all offices under the Ministry of Defence, including all units and formations under…
Explore
Effectiveness Score: NEI / 100
There is not enough information to score this indicator. Without access to the official proceedings of the Public Accounts Committee [1], it is not…
Explore
Transparency Score: 0 / 100
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…
Explore
Q60 75/100

Are potential defence purchases made public?

View Question
Policies Score: 100 / 100
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.…
Explore
Notice of planned purchases Score: 50 / 100
The full details of Forces Goal 2030 have not been officially disclosed, however, the Prime Minister, who is also the Minister of Defence, recently…
Explore
Q61 25/100

Are actual defence purchases made public?

View Question
Comprehensiveness Score: 50 / 100
Actual defence purchases are detailed in the DGDP’s annual report. However, this is a restricted document. Some selected defence purchases are detailed in the…
Explore
Accessible data Score: 0 / 100
Data is not released in an accessible format [1].
Explore

Capability Gap and Requirements Definition

Expand
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?

View Question
Formal policies Score: 0 / 100
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…
Explore
Consistent implementation Score: NA / 100
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…
Explore
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?

View Question
Procurement requirements Score: 50 / 100
Bangladesh does not have a formal national security or defence strategy. The second defence policy was approved in 2018, after a long gap since…
Explore
Scrutiny Score: 50 / 100
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,…
Explore
Purchases Score: 50 / 100
The Ministry of Defence and Armed Forces Division decide their major purchases based on the clearly identified requirements submitted by various entities such as…
Explore

Tender Solicitation, Assessment and Contract Award

Expand
Q64 0/100

Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?

View Question
Open competition Score: NEI / 100
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.…
Explore
Scrutiny of single/restricted competition procedures Score: 0 / 100
Neither Parliament nor the Defence Audit Directorate scrutinises the competition procedure. It is overseen by the Armed Forces Division [1].
Explore
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?

View Question
Conflicts of interest Score: 0 / 100
Tender committees operate under the DP-35 rules [1], which do not include any provisions on conflicts of interest or codes of conduct.
Explore
Audit Trail Score: NEI / 100
According to the Defence Audit Manual [1], tender specifications, as well as documents on the selection of suppliers and awarding of contracts, are auditable…
Explore
Transparency Score: 0 / 100
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…
Explore
Scrutiny Score: 0 / 100
Neither Parliament nor the Defence Audit Directorate scrutinises the competition procedure [1]. There is no evidence of external verification.
Explore
Q66 25/100

Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?

View Question
Legal framework Score: 50 / 100
Section 30 of DP-35 [1] prohibits collusion, but it is limited to bidders only.
Explore
Sanctions Score: 25 / 100
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…
Explore
Enforcement Score: NEI / 100
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]…
Explore
Training Score: 0 / 100
There is no training provided for procurement officials [1].
Explore

Contract Delivery and In-Service Support

Expand
Q67 33/100

Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?

View Question
Reporting policies & procedures Score: 100 / 100
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…
Explore
Transparency Score: 0 / 100
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…
Explore
Monitoring Score: 0 / 100
There is no official or public information to suggest that procurement offices have been regularly conducting reporting and delivery obligations [1,2].
Explore
Enforcement Score: NEI / 100
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…
Explore
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?

View Question
Complaints mechanisms Score: 100 / 100
On the Ministry of Defence website, the procedure for filing a complaint online via the Grievance Redress System (GRS) is clearly outlined [1]. The…
Explore
Effectiveness and Accessibility Score: 25 / 100
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…
Explore
Retaliation Score: NEI / 100
The absence of any complaints of malpractice in procurement during the last 2 years [2] indicates either that the official GRS system is not…
Explore
Q69 NEI/100

What sanctions are used to punish the corrupt activities of a supplier?

View Question
Sanctions Score: 50 / 100
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…
Explore
Undue influence Score: NEI / 100
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…
Explore
Application of sanctions Score: NEI / 100
The DGDP does not provide a publicly available debarment list. The debarment list of the Central Procurement Technical Unit (CPTU) [1] does not contain…
Explore

Offset Contracts

Expand
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?

View Question
Legal framework Score: 0 / 100
Bangladesh does not have any law that regulates offset contracts for defence purchases. An online search yielded zero results for Bangladesh offsets guidelines [1].
Explore
Due diligence Score: NEI / 100
There is not enough information to score this indicator due to the lack of public information on offset contracts. It is also not clear…
Explore
Q71 NEI/100

How does the government monitor offset contracts?

View Question
Policies & procedures Score: 0 / 100
There are no formal policies or procedures that outline the reporting and delivery obligations for offset contracts [1].
Explore
Transparency Score: NEI / 100
There is not enough information to score this indicator as it was not possible to ascertain whether any offsets occur. No publicly available information…
Explore
Monitoring Score: NEI / 100
There is not enough information to score this indicator as it was not possible to ascertain whether any offsets occur [1].
Explore
Enforcement Score: NEI / 100
There is not enough information to score this indicator as it was not possible to ascertain whether any offsets occur [1]. In the absence…
Explore
Q72 NEI/100

What level of competition are offset contracts subject to?

View Question
Score: NEI / 100
In the absence of any verifiable official records, it was not possible to conclude whether offset contracts, if any occur, are conducted through open…
Explore

Agents / Brokers

Expand
Q73 NEI/100

How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?

View Question
Policies Score: 50 / 100
Agents are allowed in cases involving foreign suppliers under DP 35 and are subject to some level of control and monitoring. In the absence…
Explore
Enforcement Score: NEI / 100
There is not enough information to score this indicator, as there are no cases reported – either on open or official sources – of…
Explore

Financing Package

Expand
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?

View Question
Score: 25 / 100
In 2013, Bangladesh and Russia signed a USD 1 billion arms deal for the purchase of Russian weapons and technology [1]. In 2018, Bangladesh…
Explore

Seller Influence

Expand
Q75 NS/100

How common is it for defence acquisition decisions to be based on political influence by selling nations?

View Question
Prevalence: selling nations Score: NS / 100
This indicator is not assigned a score in the GDI. Bangladesh has recently attained a significant geopolitical strategic position for two reasons: first, the…
Explore
Justification Score: NS / 100
This indicator is not assigned a score in the GDI. Bangladesh has always pursued a foreign policy of ‘friends to all and malice to…
Explore
Prevalence: domestic pressures Score: NS / 100
This indicator is not assigned a score in the GDI. Domestic politics is fully under the control of the incumbent government. Hence, domestic political…
Explore