In 2006-07, a procurement review carried out on the Technical Education Quality Improvement Project (TEQIP) in India shocked and surprised project authorities as well as the World Bank. Even in the third year of implementation, participating Engineering institutes were unable to follow the agreed processes and procedures. That situation eventually lead to the development of web based PMSS (Procurement management Support System) currently being used in TEQIP Phase 2 program.
The procurement Review Consultants reported an astonishing 56% variation and resulting non compliance of procedures in the sample of reviewed contracts. A series of further assessments and introspection brought out the main issues that plagued the procurement system. These were:
(i) Geography: challenges of ensuring consistency and adherence to agreed procedures in projects that covered a wide area between hundreds of institutions as seen institutions in different states following their respective procedures , using inappropriate methods of selection, etc.