Afg Procurement Rules of Procedure 120407 Eng

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ISLAMIC REPUBLIC OF AFGHANISTAN

Ministry of Finance (MoF)

THE RULES of PROCEDURE for

PUBLIC PROCUREMENT

18th November, 2009

Procurement Policy Unit (PPU)

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CONTENTS

CHAPTER I GENERAL RULES .................................................................................................................... 8 Rule 1: Scope and Purpose.............................................................................................................. 8 Rule 2: Effectiveness ......................................................................................................................... 8 Rule 3: Terminology .......................................................................................................................... 8 Rule 4: Promotion of participation by small domestic enterprises and individuals . 10 Rule 5: End user and Community Participation..................................................................... 11 Rule 6: Environmental Protection in Public Procurement ................................................. 11 Rule 7: Promotion of Information and Communications Technology in Public

Procurement........................................................................................................................ 11 CHAPTER II - PROCUREMENT PLANNING ............................................................................................ 11

SECTION A ANNUAL PROCUREMENT PLANNING.............................................................................................. 11 Rule 8: Requirement for Annual Procurement Planning .................................................... 11 Rule 9: Contents of Annual Procurement Plan ...................................................................... 12 Rule 10: Procurement of Common-Use Items.......................................................................... 12 Rule 11: Aggregation of Requirements....................................................................................... 12 Rule 12: Division into Lots ............................................................................................................... 13 SECTION B INITIATION OF PROCUREMENT PROCESS...................................................................................... 13

Rule 13: Procurement Requisition and Authorisation ........................................................... 13 Rule 14: Budgeting and Allotment of Funds ............................................................................ 14 Rule 15: Description of Goods ........................................................................................................ 15 Rule 16: Use of Brand Names ......................................................................................................... 15 Rule 17: Description of Works........................................................................................................ 15 Rule 18: Description of Services.................................................................................................... 16 SECTION C PLANNING AN INDIVIDUAL PROCUREMENT REQUIREMENT.............................................................. 16

Rule 19: Individual Procurement Plans ...................................................................................... 16 Rule 20: Selection of Appropriate Type of Contract ............................................................... 17 Rule 21: Choice of Procurement Method.................................................................................... 17 Rule 22: Potential Sources .............................................................................................................. 18 Rule 23: Emergency Procurement ................................................................................................ 18 Rule 24: Use of Open Tendering method.................................................................................... 19 Rule 25: Use of Restricted Tendering method.......................................................................... 19 Rule 26: Tendering Variants........................................................................................................... 19 Rule 27: Use of Request for Proposals Proceedings............................................................... 19 Rule 28: Use of Request for Quotations Proceedings ............................................................ 20 Rule 29: Use of Single Source Procurement Proceedings .................................................... 20 Rule 30: Two stage-tendering........................................................................................................ 20 Rule 31: Special Procedures for Design Contests ................................................................... 21 Rule 32: Special Procedures for Procurement of Infrastructure on the basis of

private financing and for award of concessions .................................................... 21 Rule 33: Cancellation of Procurement Proceedings ............................................................... 21 Rule 34: Unsuccessful Proceedings .............................................................................................. 22

CHAPTER III - ELIGIBILITY AND QUALIFICATIONS OF BIDDERS .............................................. 23 SECTION A GENERAL PROVISIONS................................................................................................................. 23

Rule 35: Eligibility of Bidders ......................................................................................................... 23 Rule 36: Qualifications of Bidders................................................................................................. 23 Rule 37: Qualification Criteria ........................................................................................................ 23 Rule 38: Qualification Requirements for Subcontractors and Joint Venture Partners

................................................................................................................................................. 24 Rule 39: Database of Bidders ......................................................................................................... 24 SECTION B PROCEDURE FOR VERIFICATION OF QUALIFICATIONS .................................................................... 24

Rule 40: Verification of Bidders Qualifications ....................................................................... 24 Rule 41: Use of Post-Qualification ................................................................................................ 25

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Rule 42: Use of Pre-Qualification .................................................................................................. 25 Rule 43: Pre-qualification Announcement ................................................................................. 25 Rule 44: Pre-qualification Documents......................................................................................... 26 Rule 45: Evaluation of Applications.............................................................................................. 26 Rule 46: Pre-qualification for a Group of Contracts ............................................................... 27

CHAPTER IV - PROCEDURES FOR TENDERING ................................................................................... 27 Rule 47: Use of Tendering Procedures ........................................................................................ 27 SECTION A INVITATION OF BIDS .................................................................................................................. 27

Rule 48: Inviting Bids ........................................................................................................................ 27 Rule 49: Contents of Announcement of Tendering Proceedings ....................................... 27 Rule 50: Publication of Announcement....................................................................................... 28 Rule 51: Shortlists .............................................................................................................................. 28 Rule 52: Contents of Bidding Documents .................................................................................. 29 Rule 53: Minimum Bidding Periods .............................................................................................. 30 Rule 54: Issue and Sale of Bidding Documents ....................................................................... 30 Rule 55: Bid Securities ...................................................................................................................... 32 Rule 56: Clarification and Amendment of Bidding Documents .......................................... 33 Rule 57: Extension of Bidding Period .......................................................................................... 33 Rule 58: Pre-bid Conferences and Site Visits............................................................................ 33 Rule 59: Submission of bids ............................................................................................................ 34 Rule 60: Withdrawal, Substitution or Modification of Bids ................................................. 34 SECTION B RECEIPT AND OPENING OF BIDS.................................................................................................. 34

Rule 61: Receipt of Bids.................................................................................................................... 34 Rule 62: Bid Closing ........................................................................................................................... 34 Rule 63: Public Opening of Bids..................................................................................................... 35 SECTION C EVALUATION OF BIDS ................................................................................................................. 36

Rule 64: Confidentiality and integrity of bid evaluation....................................................... 36 Rule 65: Evaluation of Bids Committees .................................................................................... 36 Rule 66: Evaluation Methodology and Criteria......................................................................... 36 Rule 67: Correction of Non-Conformities, Errors and Omissions ...................................... 37 Rule 68: Clarification of Bids .......................................................................................................... 37 Rule 69: Preliminary Examination ................................................................................................ 37 Rule 70: Assessing Responsiveness of Bids .............................................................................. 38 Rule 71: Technical Evaluation ........................................................................................................ 38 Rule 72: Adjustment of bid prices for minor deviations from technical aspects ......... 39 Rule 73: Alternative Bids.................................................................................................................. 39 Rule 74: Financial Evaluation and Comparison ........................................................................ 40 Rule 75: Application of Discounts ................................................................................................. 41 Rule 76: Preference............................................................................................................................ 41 Rule 77: Detailed evaluation of bids for civil works............................................................... 41 Rule 78: Post-qualification .............................................................................................................. 42 Rule 79: Bid Evaluation Reports and Recommendations ..................................................... 42

CHAPTER V - PROCEDURES FOR REQUEST FOR PROPOSALS ........................................................ 43 Rule 80: Use of Request for Proposals Procedures ................................................................ 43 SECTION A INVITATION OF EXPRESSIONS OF INTEREST ................................................................................. 43

Rule 81: Notice inviting Expressions of Interest ..................................................................... 43 Rule 82: Evaluation of Expressions of Interest and Development of Shortlists .......... 44 SECTION B INVITATION OF PROPOSALS ........................................................................................................ 44

Rule 83: Contents of Request for Proposals ............................................................................. 44 Rule 84: Choice of Selection Procedure ...................................................................................... 44 Rule 85: Submission of Proposals for Consultancy Services............................................... 45 Rule 86: Evaluation Criteria for Consultancy Services .......................................................... 45 Rule 87: Issue of Request for Proposals .................................................................................... 46 Rule 88: Clarification and Amendment of Request for Proposals ..................................... 46 Rule 89: Extension of Proposal Submission Period ................................................................ 46

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SECTION C RECEIPT AND OPENING OF PROPOSALS........................................................................................ 46 Rule 90: Receipt of Proposals......................................................................................................... 46 Rule 91: Deadline for Submission of Proposals ....................................................................... 47 Rule 92: Opening of Technical Proposals ................................................................................... 47 Rule 93: Record of Opening ............................................................................................................ 47 SECTION D TECHNICAL EVALUATION OF PROPOSALS ..................................................................................... 47

Rule 94: Evaluation Committees ................................................................................................... 47 Rule 95: Preliminary Examination ................................................................................................ 48 Rule 96: Evaluation and selection................................................................................................. 48 Rule 97: Scoring of Proposals for Technical Evaluation........................................................ 49 Rule 98: Technical evaluation report and retention of evaluation records ................... 49 Rule 99: Notification of Results of Technical Evaluation...................................................... 49 SECTION E FINANCIAL EVALUATION OF PROPOSALS ...................................................................................... 50

Rule 100: Financial Opening.............................................................................................................. 50 Rule 101: Financial Evaluation for Quality and Cost Based Selection Methods.............. 50 Rule 102: Financial Evaluation for Quality Based Selection .................................................. 51 Rule 103: Financial evaluation report ............................................................................................ 51 Rule 104: Scope of Negotiations...................................................................................................... 52 Rule 105: Procedure for Negotiations............................................................................................ 52 Rule 106: Procedure for award......................................................................................................... 53 SECTION F INDIVIDUAL CONSULTANTS ......................................................................................................... 53

Rule 107: Selection of Individual Consultants............................................................................ 53 Rule 108: Procedure for Selection of Individual Consultants ............................................... 53

CHAPTER VI PROCEDURES FOR REQUEST FOR QUOTATIONS .................................................. 54 Rule 109: Use of Request for Quotations Procedures .............................................................. 54 Rule 110: Contents of Request for Quotations Document ..................................................... 54 Rule 111: Invitation of Quotations and Development of Shortlist ...................................... 54 Rule 112: Submission and Receipt of Quotations...................................................................... 55 Rule 113: Evaluation of Quotations ................................................................................................ 55

CHAPTER VII PROCEDURES FOR SINGLE-SOURCE PROCUREMENT ....................................... 55 Rule 114: Use of Single Source Procurement Procedures ...................................................... 55 SECTION A SINGLE-SOURCE PROCUREMENT FOR LOW VALUE REQUIREMENTS ............................................... 56

Rule 115: Procedure for Low Value Procurement ..................................................................... 56 SECTION B SINGLE-SOURCE FROM A SOLE SUITABLE POTENTIAL CONTRACTOR ............................................. 56

Rule 116: Procedure for Procurement from a Sole Potential Contractor.......................... 56 SECTION C SINGLE-SOURCE FOR EMERGENCY NEEDS.................................................................................... 56

Rule 117: Procedures for Emergency Procurement .................................................................. 56 Rule 118: Approval Arrangements for Emergency Procurement ......................................... 57 SECTION D QUOTATION EVALUATION AND NEGOTIATION PROCEDURES ......................................................... 57

Rule 119: Quotation Evaluation for Single Source and Emergency Cases........................ 57 Rule 120: Procedure for Negotiations............................................................................................ 58

CHAPTER VIII CONTRACT AWARD ...................................................................................................... 58 SECTION A CONTRACT AWARD ..................................................................................................................... 58

Rule 121: Contract Award Decisions .............................................................................................. 58 Rule 122: Commitment of Funds ..................................................................................................... 58 Rule 123: Notice of Proposed Award under Tendering and Request for Proposals

Methods ................................................................................................................................ 58 Rule 124: Contract Award under Tendering and Request for Proposals Methods ........ 59 Rule 125: Contract Preparation and Signature under Tendering and Request for

Proposals Methods............................................................................................................ 60 Rule 126: Contract Award in Request for Quotations .............................................................. 60 Rule 127: Contract Award in Single Source Procurement ...................................................... 60 Rule 128: Performance Securities ................................................................................................... 60 Rule 129: Rejection of Bids and Debriefing Unsuccessful Bidders...................................... 61

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Rule 130: Public Notice of Contract Awards................................................................................ 62 Rule 131: Registration of Contracts ............................................................................................... 62 SECTION B TYPES OF CONTRACT .................................................................................................................. 62

Rule 132: Types of Contract and Pricing Approaches .............................................................. 62 Rule 133: Lump Sum Contracts ........................................................................................................ 62 Rule 134: Unit Price Contracts.......................................................................................................... 63 Rule 135: Framework Contracts ...................................................................................................... 63 Rule 136: Percentage Based Contracts ......................................................................................... 64 Rule 137: Cost Reimbursable and Target Price Contracts...................................................... 64 Rule 138: Contract for design, supply and erection.................................................................. 64 Rule 139: Turnkey contracts for industrial plant ....................................................................... 65 Rule 140: Design and build contracts ............................................................................................ 65 SECTION C CONTRACT DOCUMENTS ............................................................................................................. 65

Rule 141: Contents of Contract ........................................................................................................ 65 Rule 142: Price Adjustment ............................................................................................................... 66 Rule 143: Payment Terms .................................................................................................................. 66 Rule 144: Advance Payments............................................................................................................ 67 Rule 145: Progress Payments ........................................................................................................... 67 Rule 146: Retained Payments........................................................................................................... 67 Rule 147: Payment Documents ........................................................................................................ 68 Rule 148: Payment Securities ........................................................................................................... 68

CHAPTER IX CONTRACT ADMINISTRATION .................................................................................... 69 SECTION A CONTRACT ADMINISTRATION ...................................................................................................... 69

Rule 149: Contract Administration Responsibilities ................................................................. 69 Rule 150: Administration of Sub-Contracts ................................................................................. 70 Rule 151: Technical Inspection of Goods and Works ............................................................... 70 Rule 152: Inspection and Acceptance of Goods, Works and Services ............................... 71 Rule 153: Inspection Committee ..................................................................................................... 71 SECTION B CONTRACT MODIFICATIONS ........................................................................................................ 71

Rule 154: Contract Modifications .................................................................................................... 71 Rule 155: Contract Variations ........................................................................................................... 72 Rule 156: Contract Termination ....................................................................................................... 72

CHAPTER X - MEASURES TO PROMOTE TRANSPARENCY AND ACCOUNTABILITY ................ 72 SECTION A TRANSPARENCY .......................................................................................................................... 72

Rule 157: Procurement Records ...................................................................................................... 72 Rule 158: Summary Record of Procurement Proceedings...................................................... 73 Rule 159: Confidentiality and Disclosure of Records ............................................................... 73 Rule 160: Management of Securities and Similar Documents .............................................. 74 Rule 161: Communications ................................................................................................................ 74 SECTION B ACCOUNTABILITY........................................................................................................................ 74

Rule 162: Declaration of Conflicts of Interest ............................................................................ 74 Rule 163: Fraud and Corruption....................................................................................................... 75 Rule 164: Post-employment Restrictions on Public Officials ................................................ 75 Rule 165: Avoidance of conflicts of interest in consultative services ................................ 76 SECTION C DEBARMENT OF BIDDERS AND CONTRACTORS.............................................................................. 76

Rule 166: Grounds for Debarment of Bidders and Contractors ............................................ 76 Rule 167: Submission of a Petition to Debar............................................................................... 76 Rule 168: Investigation of Petitions to Debar ............................................................................ 76 Rule 169: Decisions to Debar ............................................................................................................ 77 SECTION D ADMINISTRATIVE REVIEW........................................................................................................... 78

Rule 170: Submission of Application for Review ....................................................................... 78 Rule 171: Review by Head of the Entity........................................................................................ 78 Rule 172: Review by Administrative Review Committee........................................................ 79 Rule 173: Composition of Administrative Review Committee and Review Boards....... 79

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CHAPTER XI - INSTITUTIONAL ARRANGEMENTS FOR PUBLIC PROCUREMENT .................... 80 SECTION A PROCURING ENTITIES .................................................................................................................. 80

Rule 174: Establishment of Procurement Offices ...................................................................... 80 Rule 175: Functions of Procurement Offices ............................................................................... 80 Rule 176: Functions of Procurement Committees..................................................................... 81 Rule 177: Composition of Procurement Committees ............................................................... 82 Rule 178: Procurement Committee Meetings ............................................................................. 82 Rule 179: Approval by the Award Authorities............................................................................. 83 SECTION B ARRANGEMENTS AT OTHER LEVELS ............................................................................................. 83

Rule 180: Approval by the Special Procurement Commission .............................................. 83 Rule 181: Special Procurement Commission Meetings............................................................ 84 Rule 182: Special Agency for procurement of Common Use Items .................................... 84 Rule 183: Contract Management Office (CMO) .......................................................................... 85 SECTION C DELEGATION OF PROCUREMENT AUTHORITY................................................................................ 85

Rule 184: Setting and Updating Thresholds ................................................................................ 85 Rule 185: Special permission for application of thresholds for specific procurement . 86

ANNEX-1: MEASURES AND PROGRAMS TO PROMOTE THE PARTICIPATION OF SMALL ENTERPRISES, RULE 4(1) ........................................................................................................................... 87

Article 1. Measures and Programmes ........................................................................................... 87 ANNEX-2: PROCEDURES FOR END USER AND COMMUNITY PARTICIPATION, RULE 5(1) . 88

Article 1: Procedures for End User and Community Participation ...................................... 88 Article 2: Application of Procedures .............................................................................................. 88 Article 3: Agreement on End User or Community Participation .......................................... 88 Article 4: End User or Community Representation................................................................... 88 Article 5: Role of the Entity............................................................................................................... 89 Article 6: Procurement and Payments .......................................................................................... 89

ANNEX-3: PRINCIPLES OF ENVIRONMENTAL PROTECTION IN PUBLIC PROCUREMENT, RULE 6(1).......................................................................................................................................................... 90

Article 1: Objectives ............................................................................................................................ 90 Article 2: Measures and Programmes ........................................................................................... 90

ANNEX-4: PRINCIPLES FOR USE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY IN PUBLIC PROCUREMENT RULE 7(1) ...................................................................... 92

Article 1: Principles .............................................................................................................................. 92 Article 2: Measures and Programme ............................................................................................. 92

ANNEX-5: SPECIAL PROCEDURES FOR DESIGN CONTESTS RULE 39(2)................................... 93 SECTION-I : GENERAL PROVISIONS........................................................................................................... 93

Article 1: Scope and Purpose............................................................................................................ 93 Article 2: Valuation of design contests ......................................................................................... 93 SECTION-II : DESIGN CONTEST JURY........................................................................................................ 93

Article 3: Establishment of jury....................................................................................................... 93 Article 4: Composition of jury .......................................................................................................... 93 Article 5: Jury procedures ................................................................................................................. 93 SECTION-III : PARTICIPATION IN DESIGN CONTESTS............................................................... 94 Article 6: Contest notice..................................................................................................................... 94 Article 7: Contents of contest notice ............................................................................................. 94 Article 8: Extent of participation..................................................................................................... 94 Article 9: Subvention of participation ........................................................................................... 95 Article 10: Non-discrimination ........................................................................................................... 95 SECTION-IV : CONTEST DOCUMENTS........................................................................................................ 95

Article 11: Provision of contest documents................................................................................... 95 Article 12: Contents of contest documents ................................................................................... 95

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Article 13: Registration and admission of participants............................................................. 96 SECTION-V : SUBMISSION AND EVALUATION OF DESIGNS AND PLANS .............................................. 96

Article 14: Submission of designs and plans................................................................................. 96 Article 15: One or two stage contests ............................................................................................. 96 Article 16: Evaluation and comparison of designs ...................................................................... 96 Article 17: Selection of the winning design................................................................................... 96 Article 18: Notice of results................................................................................................................. 97 SECTION-VI : ALLOCATION OF PRIZES, AWARDS AND COMPENSATION ............................................. 97

Article 19: Amount of prizes ............................................................................................................... 97 Article 20: Distribution of prizes ....................................................................................................... 97 Article 21: Use of designs..................................................................................................................... 97 Article 22: Copyright and ownership issues .................................................................................. 97 SECTION-VII : MISCELLANEOUS PROVISIONS ......................................................................................... 97

Article 23: Exhibition of designs........................................................................................................ 97 Article 24: Standards of conduct ....................................................................................................... 98 Article 25: Cancellation of contest.................................................................................................... 98 Article 26: Record of the contest....................................................................................................... 98 Article 27: Review................................................................................................................................... 99

ANNEX-6: SPECIAL PROCEDURES FOR PROCUREMENT OF INFRASTRUCTURE ON THE BASIS OF PRIVATE FINANCING AND FOR THE AWARD OF CONCESSIONS RULE 40(1) ... 100

SECTION-A : RULES GOVERNING THE PROCUREMENT PROCEEDINGS ............................................................... 100 Article 1: Applicable Law & Rules................................................................................................ 100 SECTION-B : PRE-QUALIFICATION OF BIDDERS.............................................................................................. 100

Article 2: Purpose and procedure of pre-qualification.......................................................... 100 Article 3: Pre-qualification criteria............................................................................................... 100 Article 4: Participation of consortia ............................................................................................. 101 Article 5: Shortlist .............................................................................................................................. 101 SECTION-C : PROCEDURE FOR REQUESTING AND EVALUATING PROPOSALS ...................................................... 101

Article 6: Single-stage and two-stage procedures for requesting proposals ............... 101 Article 7: Content of the request for proposals ....................................................................... 102 Article 8: Bid securities..................................................................................................................... 102 Article 9: Evaluation criteria ........................................................................................................... 103 Article 10: Comparison and evaluation of proposals ............................................................... 103 Article 11: Final negotiations............................................................................................................ 103 SECTION-D : NEGOTIATION OF CONTRACTS WITHOUT COMPETITIVE PROCEDURES...................................... 104

Article 12: Circumstances authorizing award without competitive procedures ............ 104 Article 13: Procedures for negotiation of a contract without competitive procedures104 SECTION-E : UNSOLICITED PROPOSALS.......................................................................................................... 104

Article 14: Admissibility of unsolicited proposals ..................................................................... 104 Article 15: Procedures for determining the admissibility of unsolicited proposals ...... 105 Article 16: Unsolicited proposals that do not involve intellectual property, trade

secrets or other exclusive rights ............................................................................... 105 Article 17: Unsolicited proposals involving intellectual property, trade secrets or other

exclusive rights ................................................................................................................ 105 SECTION-F : MISCELLANEOUS PROVISIONS .................................................................................................... 106

Article 18: Confidentiality .................................................................................................................. 106 Article 19: Notice of contract award .............................................................................................. 106

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Rules of Procedure for Public Procurement

CHAPTER I GENERAL RULES

Rule 1: Scope and Purpose

(1) These Rules of Procedure are issued in accordance with article 95 of the Afghanistan Law on Public Procurement enacted in July 2008 as amended in January, 2009 (hereinafter the Law), for the purpose of establishing detailed rules and procedures to fulfil the objectives and to implement the provisions of the Law.

(2) These Rules apply to all procurement covered by the Law, in accordance with article 4 of the Law. Alternative or modified procurement rules may only be applied in the case of-

(a) Procurement related to national defence or national security, in accordance with article 4(1) of the Law.

(b) Procurement subject to the rules of a donor or funding agency in accordance with article 4(2) of the Law; or

(c) Procurement conducted by Afghan government entities located abroad, unless agreed otherwise in accordance with Article 4(3) of the Law

(3) Compliance with these Rules is obligatory for procuring entities and other participants in public procurement.

Rule 2: Effectiveness

These Rules shall be approved in Ministry of Finance and shall become effective on approval.

Rule 3: Terminology

(1) Administrative Review Committee refers to the panel of experts appointed by the PPU in accordance with article 72(1) of the Law for the purposes of conducting administrative review of applications and related appeals.

(2) Award Authority means the person with authority to award a contract or approve a contract modification, concerning the procurement of goods, services or works, pursuant to provisions of the Law and the provisions of the Public Finance and Expenditure Management Law.

(3) Bid means a tender, proposal or price quotation given by a bidder in response to an invitation or request for the provision of goods, works or services.

(4) Bidder means a legal or natural person, according to the provisions of the bidding documents who, or whose legal representative; submits an offer and participates in the procurement proceedings in accordance with provisions of the Law.

(5) Bidding Documents means document [issued by the Entity] describing quantity, quality, characteristics of goods, works and [non-consulting] services to be procured, conditions and procedure for submitting a bid.

(6) Circulars means circulars or guidelines issued by the PPU under the provisions of Article 95(2) of the Law.

(7) Consultants services refers to activities of a professional, intellectual and advisory nature. Provision of materials and goods or works shall be an exception to this Rule, except when the works are of an informational nature. They include design,

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supervision, training, auditing, software development, expert proposals and advice, and similar technical or professional services.

(8) Contractor is a successful bidder who contracts with the procuring entity to provide goods, works or services.

(9) Currency designates the Afghani or the legal tender of foreign countries.

(10) Goods means objects of every kind including raw materials, products and equipment whether in solid, liquid or gaseous form, as well as services incidental to the provision of the goods provided the value of such incidental services does not exceed that of the goods.

(11) Law means the 2008 Afghanistan Law on Public Procurement, as amended in 2009.

(12) Non-consultancy services are any object of procurement other than goods, works and consultants services.

(13) Tendering: means any formal and competitive procurement procedures through which bids are requested, received and evaluated for the procurement of goods, works and services, and as a consequence of which an award is made to the successful bidder.

(14) Restricted Tender means the tendering method, provided by article 23 of the Law, in which a limited number of bidders, which shall not be less than three (3), are invited to bid.

(15) Single-source procurement is the procurement method, provided by Article 24 of the Law, by which the Entity awards the procurement contract directly, without holding a competitive proceeding.

(16) Open Tender is the procurement method, provided by article 22 of the Law, in which any bidder may submit a bid concerning the procurement of his interest, in compliance with the specifications set forth in the bidding documents, to the relevant entity.

(17) Person is a natural or legal person including companies, firms, and the like.

(18) Procurement means acquisition of goods, works or services, by entity or through a contractor by use of public funds.

(19) Procurement Committee is a committee of directors and officials appointed by the Entity to carry out procurement proceedings as provided for by the Law.

(20) Procurement contract means the written agreement made by an entity with a contractor with respect to the procurement.

(21) Entity (Edaara) means any Ministry, independent head departments, state owned enterprises other budgetary unit and also municipality, government companies and mixed companies in which the share of the state exceeds twenty-five percent (25%).

(22) Procurement Office is the office responsible to carry out procurement activities according to the functions provided for by Article 74 of the Law..

(23) Procurement Policy Unit (PPU) is the central unit established within the Ministry of Finance pursuant to Article 80 of the Law, for policy and professional development and as a performance monitoring organ in the field of procurement.

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(24) Public funds are the moneys or other financial assets defined in article 8 of the Public Finance and Expenditure Management Law, and includes any monetary resources appropriated to procuring entities through budgetary processes, as well as extra budgetary funds including aid grants and credits put at the disposal of procuring entities by foreign donors, and revenues of procuring entities.

(25) Request for quotations proceedings is the simplified procurement method, provided by article 21 of the Law, to carry out low-value procurement of standard goods or routine works or non-consultancy services.

(26) Request for quotations means the document used to carry out low-value procurement of standard goods or works or services, in accordance with the provisions of the Law.

(27) Request for proposals proceedings is the procurement procedure, provided by Article 37 of the Law, to be utilised for procurement of consulting and other intellectual services.

(28) Request for proposals for Consultancy Services is the document package utilized for procurement of, consultants services in which the procedures and conditions for submission of proposals are described.

(29) Rules means these Rules of Procedure for Public Procurement.

(30) Securities means the funds in cash or in kind, immovable property, bank guarantee or any other such instrument that the bidder provides to secure his obligations in the tender proceedings and that the contractor provides in fulfilling its obligations under the procurement contract.

(31) Solicitation documents means bidding documents, request for proposals documents, request for quotations documents and any other document on the basis of which bidders prepare and submit a bid or a proposal for the supply of goods, works or services.

(32) Special Procurement Commission is the Committee established under Article 77 of the Law to approve high-value procurement contract awards exceeding Award Authoritys threshold limits in accordance with the provisions of Article 92 of the Law.

(33) Two-stage tendering is the variant of tendering proceedings in which, in accordance with the provisions of Articles 39 of the Law, the procuring entity holds consultations with bidders in the first stage on the basis of preliminary bidding documents with a view to considering various possible technical and contractual solutions to its procurement need; thereafter, in the second stage, a tendering proceeding is held on the basis of revised bidding documents.

(34) Works includes all work associated with the construction, reconstruction, demolition, repair or renovation of a building, structure or site preparation, excavation, erection, installation of equipment or materials, decoration and finishing, as well as services incidental to construction such as drilling, mapping, satellite photography, seismic investigations and similar services provided pursuant to the procurement contract, provided that the value of those services does not exceed that of the construction itself.

Rule 4: Promotion of participation by small domestic enterprises and individuals

(1) The PPU, in consultation with other competent authorities, shall issue circulars on measures and program for the promotion and facilitation of participation by small

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domestic enterprises and individuals in public procurement. Such measures and program shall be in accordance with Annex 1.

(2) Procuring entities shall implement measures and programs for the promotion and facilitation of participation by small domestic enterprises and individuals in accordance with circulars issued by the PPU.

Rule 5: End user and Community Participation

(1) The PPU, in consultation with other competent authorities, may issue circulars on procedures for end user and community participation in the delivery of goods, works or services. Such circulars shall be in accordance with Annex 2.

(2) Procuring entities may implement end user and community participation in accordance with procedures in circulars issued by the PPU.

Rule 6: Environmental Protection in Public Procurement

(1) The PPU, in consultation with other competent authorities, shall issue circulars on environmental protection in public procurement. Such circulars shall be in accordance with Annex-3.

(2) Procuring entities shall implement measures to protect the environment in accordance with circulars issued by the PPU.

Rule 7: Promotion of Information and Communications Technology in Public Procurement

(1) Pursuant to article 10 of the Law, the PPU, in consultation with other competent authorities, shall issue circulars and guidelines on measures and programmes to introduce the use of information and communications technology in public procurement. Such circulars and guidelines shall be in accordance with the principles set forth in Annex 4.

(2) Procuring entities shall implement measures and programs to introduce the use of information and communications technology in accordance with circulars and guidelines issued by the PPU.

(3) The PPU shall identify any required additions or amendments to the legal and regulatory framework for public procurement to accommodate the application of information and communications technology and shall promote their introduction.

CHAPTER II - PROCUREMENT PLANNING SECTION A Annual Procurement Planning

Rule 8: Requirement for Annual Procurement Planning

(1) Procuring entities shall prepare a procurement plan for each fiscal year, containing the information required by rule 9.

(2) Annual procurement planning shall be integrated with applicable budget processes and based on indicative or approved budgets, as appropriate.

(3) Procuring entities shall submit their annual procurement plans to the PPU of the Ministry of Finance by the end of the first quarter of each fiscal year.

(4) Procuring entities shall revise and update their procurement plans, as appropriate, during the course of each fiscal year.

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Rule 9: Contents of Annual Procurement Plan

(1) The annual procurement plan for each procuring entity shall include:

(a) A detailed breakdown of the goods, works and services required;

(b) a schedule of the delivery, implementation or completion dates for all goods, works and services required;

(c) an indication of which items can be aggregated for procurement as a single package or for procurement through any applicable arrangements for common-use items;

(d) an estimate of the value of each package of goods, works and services required and details of the budget available and sources of funding;

(e) an indication of the rules applicable to the procurement, where any procurement is not subject to these Rules;

(f) an indication of the anticipated procurement method for each procurement requirement, including any need for pre-qualification, and the anticipated time for the complete procurement cycle, taking into account the applicable approval requirements;

(i) an indication of whether the goods, works or services will be procured by the Procurement Office, a specialised Procurement Office, any special agency designated to procure common-use items or any other body;

(j) an indication of the resources available for managing the procurement workload; and

(k) details of any committed or planned procurement expenditure under existing multiyear contracts.

Rule 10: Procurement of Common-Use Items

(1) Procuring entities shall procure common-use items in accordance with any instructions issued by the Government under article 79 of the Law.

Rule 11: Aggregation of Requirements

(1) Procuring entities shall aggregate procurement requirements, where appropriate, in order to achieve economies of scale. In deciding where aggregation is appropriate, the Procurement Office shall consider all relevant factors, including:

(a) which items are of a similar nature and likely to attract the same potential bidders;

(b) when items will be ready for bidding and when delivery, implementation or completion is required;

(c) the optimum size and type of contract to attract the greatest and most responsive competition, taking into account the market structure for the items required;

(d) the need to apply any applicable measures to promote the participation of small domestic enterprises or individuals, or to promote end-user or community participation;

(e) which items will be subject to the same bidding requirements and conditions of contract; and

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(f) the potential to realise savings in time or transaction costs or to facilitate contract administration by the procuring entity.

Rule 12: Division into Lots

(1) Notwithstanding the prohibition on dis-aggregation of procurement in Article 16(1) of the Law, procuring entities may divide a procurement requirement, which could be procured as a single contract, into a package, consisting of several lots which are to be tendered together, where it is anticipated that the award of several separate contracts may result in the best overall value for the Entity.

(2) The division of a requirement into a package of separate lots is permitted where it is likely to increase the number of responsive bids by enabling the participation of:

(a) bidders who are able to bid for some, but not all, types of item; or

(b) small enterprises who would not be qualified to bid for the complete package as a single contract.

(3) A requirement shall not be divided into lots

(a) for the sole purpose of avoiding thresholds;

(b) where the award of several separate contracts would create problems of compatibility or interchange ability between items procured as separate lots, or would unduly strain contract administration resources;

(c) where the award of several separate contracts would invalidate or otherwise restrict any contractors warranty or liability; or

(d) where the award of several separate contracts would increase the costs of servicing, maintenance or similar requirements.

(4) Where a requirement which could be procured as a single contract is divided into lots, the Entity shall:

(a) permit bidders to bid for a single lot, any combination of lots or all lots; and

(b) demonstrate, prior to contract award, that the recommended contract award or combination of contract awards offers the best overall value for the Entity.

SECTION B Initiation of Procurement Process

Rule 13: Procurement Requisition and Authorisation

(1) Every procurement requirement shall be documented using a procurement requisition, which shall include:

(a) a description of the goods, works or services required, in accordance with rules 15, 17 or 18, as appropriate;

(b) the estimated value of the goods, works or services; and

(c) details of the funds budgeted for the requirement, including any funds yet to be allotted or from future budgets for multi-year contracts.

(2) In preparing the description of goods, works or services required, the end user shall ensure that it seeks technical advice, where required.

(3) In estimating the value of the goods, works or services, the end user shall ensure that the estimate is realistic and based on up-to-date information on economic and market conditions.

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(4) The procurement requisition shall be approved by the Procurement Award Authority specified in Article 91 of the Law, acting as Procurement Initiation Authority, prior to the initiation of procurement proceedings.

(5) Approved procurement requisitions shall be submitted to the Procurement Office of the Entity to initiate procurement proceedings.

Rule 14: Budgeting and Allotment of Funds

(1) The Procurement Office shall ensure that adequate funds are budgeted and allotted in accordance with article 12(1) of the Law, prior to initiating procurement proceedings, taking into account all costs involved in the procurement. The costs involved may, in addition to the total contract price, include the following:

(a) contingencies, including any anticipated contract variations, exchange rate fluctuations or allowance for price adjustment;

(b) other costs relating to the successful delivery of a procurement requirement and for which the Entity will be liable, such as freight, insurance, customs clearance, inland delivery, import taxes or duties, inspection, installation or any costs relating to service or maintenance agreements;

(c) costs relating to facilities, services or resources to be provided by the Entity, such as office space or communication facilities for consultants or counterpart staff; and/or

(d) the cost of any linked contract, which is necessary for the successful implementation of the procurement, such as a contract for engineering supervision of a construction contract.

(2) The Procurement Office shall also ensure that adequate funds are available for managing the procurement proceedings, including, but not limited to, any funds required for publication of notices.

(3) Notwithstanding the provisions of sub-Rule 14(1), a Entity may initiate procurement proceedings, up to, but not including contract award, prior to allotting the funds required, where this is necessary in order to meet the objectives of the procurement and comply with the procurement plan. The fact that funds have not yet been allotted shall be clearly stated on the procurement requisition, which shall also indicate the expected source of funds and when they are expected to be allotted.

(4) Where the Entity initiates procurement proceedings prior to allotting funds, in accordance with sub-Rule 14(3), it shall obtain the prior written approval of the Ministry of Finance.

(5) Where a Entity initiates procurement proceedings for a multi-year contract, which will commit the Entity to make payments in subsequent fiscal years, the Entity shall:

(a) obtain the approval of the Ministry of Finance, prior to contract award;

(b) ensure that funds for the current fiscal year are budgeted and allotted; and

(c) ensure that funds for future fiscal years are included in budgets for subsequent fiscal years and reported to the Ministry of Finance, without prejudice to a reservation by the Entity in the contract of the right to cancel subsequent years of the contract in the event the necessary funding is not allocated in the budget.

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Rule 15: Description of Goods

(1) Every procurement requisition for the procurement of goods shall be accompanied by a complete, precise and unambiguous description of the goods required. This description shall include, where appropriate-

(a) a list of goods and the quantities required, including any incidental services or works, such as delivery, installation, commissioning, maintenance, repair, user training or the provision of after-sales services;

(b) a delivery and completion schedule;

(c) specifications; and

(d) drawings.

(2) Specifications shall include, where appropriate-

(a) the purpose and objectives of the goods;

(b) a full description of the requirement;

(c) a generic specification to an appropriate level of detail;

(d) a functional description of the goods, including any environmental or safety features;

(e) performance parameters, including outputs, timescales and any indicators or criteria by which satisfactory performance can be judged;

(f) process and materials descriptions;

(g) dimensions, symbols, terminology language, packaging, marking and labelling requirements;

(h) inspection and testing requirements; and

(i) any applicable standards.

(3) The description of goods shall be drawn up in an objective manner, so as to maximize competition.

Rule 16: Use of Brand Names

(1) Descriptions of goods shall not include any reference to a particular trademark, brand name, patent, design, type, specific origin, producer, manufacturer, catalogue or numbered item, unless there is no other sufficiently precise or intelligible way of describing the requirement, in which case the words or equivalent shall be included and the description shall serve only as a benchmark during the evaluation process.

(2) Notwithstanding the provisions of sub-Rule 16(1), where a particular trademark, brand name, patent, design, type, specific origin, producer, manufacturer, catalogue or numbered item is required for reasons of technical compatibility, servicing, maintenance or preservation of warranty conditions, such description may be used, subject to written justification.

Rule 17: Description of Works

(1) Every procurement requisition for the procurement of works shall be accompanied by a complete, precise and unambiguous description of the works required. This description shall include, where appropriate:

(a) a description of the scope of the works, which may include, but not be limited to design, construction or installation of equipment;

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(b) the purpose and objectives of the works;

(c) the duration or completion schedule for the works;

(d) details of the supervision requirements, working relationships and other administrative arrangements;

(e) drawings and/or design requirements;

(f) specifications and standards;

(g) bill of quantities or equivalent; and

(h) inspection and testing requirements.

Rule 18: Description of Services

(1) Every procurement requisition for the procurement of services shall be accompanied by a complete, precise and unambiguous description of the services required. This description shall consist of terms of reference, which shall include, where appropriate:

(a) a background narrative to the required services;

(b) the objectives of the services and targets to be achieved;

(c) a list of specific tasks or duties;

(d) deliverables or outputs for the assignment;

(e) the role, qualifications or experience required for any key staff;

(f) management and reporting lines for the supplier, including administrative arrangements and reporting requirements;

(g) any facilities, services or resources to be provided by the Entity;

(h) inspection or quality testing requirements or indicators of successful performance; and

(i) the duration or completion schedule.

SECTION C Planning an individual procurement requirement

Rule 19: Individual Procurement Plans

(1) Following receipt of the approved procurement requisition, the Procurement Office shall prepare a procurement plan for each individual procurement requirement.

(2) Procurement plans shall include-

(a) a description of the requirement, including the schedule required for delivery, implementation or completion of the goods, works or services and any division into lots;

(b) the estimated value of the requirement and, where applicable, individual lots;

(c) the proposed procurement method, in accordance with Rule 21, and a justification for the use of any method other than open tendering, or request for proposals for consultancy services;

(d) an indication of whether any tendering variants will apply, in accordance with Rule 26;

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(e) an indication of whether pre- or post- qualification will be required, or whether the procurement requirement will make use of any pre-qualification for a group of contracts;

(f) an estimate of the time required for each stage in the procurement cycle, taking into account publication requirements and the applicable approval requirements;

(g) the proposed type of contract in accordance with Rule 20;

(h) the rules applicable to the procurement, where any procurement is subject to alternative rules in accordance with Article 4(2) and Article 4(3) of the Law;

(i) an indication of the resources required and available for management of the procurement process and contract administration; and

(j) any other relevant information.

(3) Notwithstanding the provisions of sub-Rule 19(1), where the estimated value of the procurement requirement is less than the amount stated in Rule 28, below which use of the request for quotations method is permitted, no written procurement plan shall be required.

(4) The Procurement Plan shall be submitted to the Procurement Committee for approval, prior to issue of any solicitation documents.

Rule 20: Selection of Appropriate Type of Contract

(1) The procuring entity shall use the most appropriate type of contract from among the types specified in Chapter VIII, Section B of these Rules.

(2) The Procurement Office shall select the type of contract as part of the procurement planning process, taking into account:

(a) the nature, value and complexity of the procurement requirement;

(b) the need to offer an equitable contract to bidders to ensure effective competition;

(c) the need to maximise value for money and minimise risk for the Entity;

(d) the likelihood of any delays or unforeseen circumstances requiring contract variations;

(e) The Entitys ability to define its precise requirements, including the quantities and delivery or completion dates required;

(f) the need for effective contract administration and cost control; and

(g) the resources available for contract administration.

Rule 21: Choice of Procurement Method

(1) Procuring entities shall select the most appropriate method of procurement for each requirement, as part of the procurement planning process. The choice of the Procurement Method shall be as provided in the Law.

(2) The choice of procurement method shall take into account-

(a) the estimated value of the procurement;

(b) the potential sources for the procurement, in accordance with Rule 22;

(d) the nature of the goods, works or services required; and

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(e) the circumstances surrounding the procurement, such as the existence of an emergency need.

(3) The reasons for the selection of any procurement method other than open tendering or request for proposals shall be clearly stated in the procurement record.

(4) The Procurement Office shall obtain the prior approval of the Award Authority, for the use of-

(a) restricted tendering, except where the method is used on grounds of the estimated value, in accordance with Rule 25;

(b) open or restricted tendering, using a two-stage procedure;

(c) single source procurement, except where the method is used on grounds of the estimated value, in accordance with Rule 29.

(5) The approval required by sub-Rule 21(4) shall be obtained when seeking approval of the procurement plan.

Rule 22: Potential Sources

(1) In considering the potential sources for any procurement requirement, the Procurement Office shall consider all relevant factors, including, but not limited to:

(a) the competitiveness of the national and international market for the goods, works or services;

(b) the likely interest of potential national and international bidders, given the size and nature of the requirement;

(c) whether items should be procured from the manufacturer or from a distributor or agent;

(d) any restrictions relating to existing copyright, intellectual property rights, patent or proprietary rights;

(e) whether there are functionally equivalent goods, works or services which would meet the needs of the Entity;

(f) any applicable government regulations that restrict sources;

(g) the need for compatibility or interchange ability with existing goods, works or services;

(h) requirements for servicing and maintenance of items procured and any restrictions related to conditions of warranty;

(i) any impact on conditions relating to warranty or a contractors liability, if alternative contractors are used for additional or continued deliveries or work; and

(j) any potential benefits such as the use of experience acquired or savings in mobilisation costs.

Rule 23: Emergency Procurement

(1) Where urgent circumstances or an emergency need affect the choice of procurement method, the Entity shall not automatically exclude competitive methods of procurement and shall obtain competition to the maximum extent practical in the circumstances

(2) Where the Entity uses restricted tendering on grounds of urgency in accordance with the provisions of Rule 25(1)(c) or single source procurement on grounds of an

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emergency in accordance with the provisions of Rule 29(1)(c), the Entity shall limit the procurement to the quantity needed to deal with the urgent circumstances.

Rule 24: Use of Open Tendering method

(1) A procuring entity shall use the open tendering procurement method for all procurement of goods, works and non-consultancy services, except where:

(a) the procurement meets the conditions for use of restricted tendering specified in Rule 25; or

(b) the estimated value is less than the applicable threshold for request for quotations specified in Rule 28; or

(c) the procurement meets the conditions for use of single source procurement specified in Rule 29.

(2) Procurement under the open tendering method shall be conducted in accordance with the provisions of Chapter IV of these Rules.

Rule 25: Use of Restricted Tendering method

(1) An Entity may use the restricted tendering procurement method for goods, works or non-consultancy services where:

(a) the goods, works or services are only available from a limited number of bidders;

(b) when the time and cost of considering a large number of bids is disproportionate to the value of the procurement;

(c) the use of open tendering is not practicable, due to unforeseeable, urgent circumstances, which are not due to the dilatory conduct of the Entity.

(2) Procurement under the restricted tendering method shall be conducted in accordance with the applicable provisions of Chapter IV of these Rules.

Rule 26: Tendering Variants

(1) An Entity shall conduct open or restricted tendering on an international basis, where:

(a) the goods, works or services are not available under competitive price from three or more potential bidders in Afghanistan; or

(b) a national tendering proceeding has failed to identify an acceptable bidder.

(2) Tendering on an international basis shall be conducted in accordance with the applicable provisions of Chapter IV of these Rules.

(3) An Entity may conduct open or restricted tendering using a two-stage tendering , in the cases outlined in article 39 of the Law.

(4) Tendering using a two-stage procedure shall be conducted in accordance with the applicable provisions of Chapter IV of these Rules, as modified by Rule 30.

Rule 27: Use of Request for Proposals Proceedings

(1) An Entity shall use the request for proposals proceedings for all procurement of consultancy services, except where the procurement meets the conditions for use of single source procurement specified in Rule 29.

(2) Procurement under the request for proposals method shall be conducted in accordance with the provisions of Chapter V of these Rules.

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Rule 28: Use of Request for Quotations Proceedings

(1) An Entity may use request for quotations proceedings for:

(a) readily available commercially standard goods, which are not specially manufactured to the particular specification of the Entity, where the estimated value of the procurement does not exceed the threshold specified in Article 91 of the Law;

(b) works, where the estimated value of the procurement does not exceed the threshold specified in Article 91 of the Law;

(c) non-consultancy services, where the estimated value of the procurement does not exceed the threshold specified in Article 91 of the Law.

(2) Procurement under the request for quotations method shall be conducted in accordance with the provisions of Chapter VI of these Rules.

Rule 29: Use of Single Source Procurement Proceedings

(1) An Entity may use single source proceedings where:

(a) Where the estimated value of the procurement does not exceed 3000 Afs, or

(b) only one potential contractor has the technical capability or capacity to fulfil the procurement requirement within the time required by the Entity or a particular potential contractor has exclusive rights in respect of the goods, works or services and no reasonable alternative or substitute exists, in accordance with the requirements referred in article 24(1) of the Law; or

(c) there is an emergency need for the goods, works or services, involving an imminent threat to public health, welfare or safety, or an imminent threat of damage to property and engaging in tendering proceedings or other procurement methods would therefore not be practicable.

(2) When the estimated value of procurement exceeds 3000 Afs the single source procurement shall meet the conditions set forth in Rule 29(1) (b) or 29(1) (c) above where the procurement is within the award authoritys threshold limits set out in Article 91(1) (v) and 91(1) (vi) of the law. Where the single source procurement is beyond the threshold limits of award authority and require approval of Special Procurement Commission it should again meet the conditions set forth in Rule 29(1)(b) or 29 (1) c above.

(3) Procurement under the single source procurement method shall be conducted in accordance with the applicable section of Chapter VII of these Rules.

Rule 30: Two stage-tendering

(1) Tendering using a two-stage procedure shall be conducted in accordance with the applicable provisions of Chapter IV, except that-

(a) any announcement shall clearly state that the tender is being conducted in two stages and that only technical bids are to be submitted in the first stage;

(b) the initial bidding document shall request technical information only and shall contain outline details of the requirement, indicating any technical, performance or contractual parameters to be met by bidders;

(c) the initial evaluation will consist of a preliminary examination and technical evaluation only and shall evaluate the bids against the outline details and parameters in the bidding document;

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(d) following the initial evaluation, the Procurement Office shall finalize its requirements and issue a revised bidding document to all bidders who were substantially responsive to the initial bidding document, requesting both technical and financial information;

(e) the Entity may, in the first stage, engage in discussions with any or all bidders with a view to understanding proposals or to indicate changes required to make them acceptable and seek the bidders willingness to make such changes.

(f) the final evaluation shall consider all technical and financial aspects of the bids, except where information provided in the initial bid does not need to be resubmitted or re-evaluated.

Rule 31: Special Procedures for Design Contests

(1) In appropriate cases, such as the procurement of architectural designs or urban planning designs, the Entity may conduct a design contest for the purposes of selecting a design.

(2) The procedures to be followed in conducting a design contest are set forth in Annex-5.

Rule 32: Special Procedures for Procurement of Infrastructure on the basis of private financing and for award of concessions

(1) In accordance with the provisions of article 40 of the Law, the award of contracts involving the private financing of infrastructure construction or rehabilitation, such as Build-Operate-Transfer, the award of concessions and comparable forms of contracting shall be subject to the special procedures set forth in Annex-6.

Rule 33: Cancellation of Procurement Proceedings

(1) The cancellation of procurement proceedings shall be avoided whenever possible, but is exceptionally permitted in accordance with the provisions of Article 36 of the Law where:

(a) the procurement need has ceased to exist or changed significantly;

(b) insufficient funding is available for the procurement;

(c) there is a significant change in the required technical details, bidding conditions, conditions of contract or other details, such that the recommencement of proceedings is necessary;

(d) insufficient, or no responsive bids are received;

(e) there is evidence of collusion among bidders; or

(f) it is otherwise in the public interest.

(2) The Procurement Office shall obtain the prior, written approval of the initiation authority, which approved the procurement requisition in accordance with Rule 13, before cancelling any procurement proceedings.

(3) The Procurement Office shall prepare a written request for approval by the Award Authority to cancel procurement proceedings, which shall clearly state:

(a) detailed reasons for recommending cancellation;

(b) the status of the procurement proceedings, including in particular, whether bids have already been opened under tendering methods; and

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(c) whether new procurement proceedings are recommended and, if so, the modifications recommended.

(4) Where procurement proceedings are cancelled prior to bid opening, any bids received shall be returned unopened.

Rule 34: Unsuccessful Proceedings

(1) Where no responsive bids are received or procurement proceedings are otherwise unsuccessful, the Procurement Office shall investigate the failed procurement proceedings and send a report to the Award Authority for approval. The report shall include the reasons why the procurement was unsuccessful and recommendations on how any new procurement proceedings should be managed to avoid such failings.

(2) The investigation shall consider all relevant issues, which may include, but are not limited to:

(a) whether the bidding period was sufficient, considering the factors listed in Rule 53(5);

(b) whether the requirements of the solicitation documents and the terms and conditions of the proposed contract were reasonable and not so excessive as to deter competition;

(c) whether any invitation notice was published in an appropriate publication and on the required date;

(d) whether any shortlist included sufficient bidders and whether the bidders included provide the goods, works or services required;

(e) whether there was any delay in issuing the solicitation documents;

(f) whether any amendments or clarifications to the solicitation documents allowed sufficient time for bidders to take them into account in preparing their bids;

(g) whether there were other extraneous events or circumstances, which may have affected the ability of bidders to respond;

(h) whether the evaluation process was conducted in accordance with these Rules and the solicitation documents and whether staff responsible for the evaluation had adequate skills and resources;

(i) whether there is any suspicion of collusion between potential bidders; and

(j) whether the original choice of procurement method was appropriate.

(3) The Procurement Office shall make any appropriate recommendations, which may include, but are not limited to:

(a) the use of an alternative method of procurement;

(b) amendments to the solicitation documents, including bidding requirements, the type of contract or the terms and conditions of the proposed contract;

(c) alternative publication of any invitations to bid, similar notices or solicitation documents or a revised shortlist; and

(d) the introduction of international competition.

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CHAPTER III - ELIGIBILITY AND QUALIFICATIONS OF BIDDERS SECTION A General provisions

Rule 35: Eligibility of Bidders

(1) In order to participate in public procurement, a bidder shall be eligible in accordance with the provisions of Article 17(1) of the Law.

(2) The Entity shall clearly state the eligibility requirements in all solicitation documents and shall, where it deems fit, require bidders to provide signed statements or documentary evidence to certify their eligibility.

(3) The Entity shall clearly state any documentation required as evidence of a Bidders eligibility. This may include, but shall not be limited to :

(a) copies of the bidders certificate of registration, certificate of incorporation, trading licence or similar document;

(b) copies of the bidders tax registration, tax clearance certificates or similar document;

(c) a signed statement that the bidder does not have a conflict of interest in relation to the procurement;

(d) a signed statement that the bidder, or any of its directors or officers, have not been convicted of any criminal offence relating to professional conduct or the making of false statements or misrepresentations as to its qualifications to enter into a procurement contract within a period of three years preceding the commencement of procurement proceedings; and

(e) a signed statement that the bidder is not subject to debarment pursuant to article 70 of the Law, or that any of its directors or officers have not been involved in a bidder or contractor currently subject to debarment.

(4) In determining the documentation required as evidence of a Bidders eligibility, the Entity shall ensure that the requirements do not discriminate against foreign bidders, but permit the submission of equivalent documents from the relevant authorities in the foreign bidders country of origin or submission of statements certifying that equivalent documentation is not issued in the foreign bidders country of origin.

Rule 36: Qualifications of Bidders

(1) In order to be awarded a contract, a bidder shall be determined to be qualified, in accordance with article 17(3) of the Law.

(2) The Entity shall clearly state any qualification criteria in the pre-qualification or solicitation documents and shall, where it deems fit, require bidders to provide signed statements or documentary evidence to certify their qualifications.

Rule 37: Qualification Criteria

(1) Qualification criteria shall be designed to ensure that the bidder is capable of effectively performing the proposed contract.

(2) Qualification criteria shall be limited to those necessary for the effective performance of the proposed contract and shall not be unduly restrictive or designed to reduce competition.

(3) Qualification criteria shall be prepared for each procurement requirement, taking into account the size, complexity and technical requirements of the proposed contract.

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(4) Qualification criteria may relate to-

(a) technical competence and resources, including, but not limited to, the availability of sufficient manpower, the qualifications and experience of key personnel or managers, available equipment, manufacturing or construction facilities;

(b) available capacity to perform the proposed contract, including, but not limited to available manufacturing or production capacity, taking into account other commitments or manufacturers authorizations to supply;

(c) financial position, including, but not limited to financial soundness, sufficient turnover or sufficient cash flow; and/or

(d) experience and satisfactory performance of similar contracts, taking into account relevant factors, including, but not limited to references and litigation record.

(5) The Entity shall state in pre-qualification or bidding documents, the documentary evidence required from bidders, as evidence of their qualifications.

Rule 38: Qualification Requirements for Subcontractors and Joint Venture Partners

(1) Solicitation or, where applicable, pre-qualification documents shall clearly state

(a) whether qualification criteria apply to lead contractors, subcontractors or partners in a joint venture, consortium or association;

(b) whether criteria will be applied individually or collectively to each contractor, subcontractor or partner; and

(c) any alternative criteria which apply to subcontractors or partners in a joint venture, consortium or association.

Rule 39: Database of Bidders

(1) Procuring entities, or any special agency designated to conduct the procurement of common use items in accordance with Rule 182, may establish database and standing lists in order to provide information on potential and eligible bidders.

(2) Database of bidders may also be used to register bidders who are eligible for any scheme to promote small enterprises in accordance with Rule 4 or any preference scheme.

(3) In developing and maintaining database of bidders, the entity responsible for the list shall comply with the requirements of Article 19 of the Law.

SECTION B Procedure for verification of qualifications

Rule 40: Verification of Bidders Qualifications

(1) The Entity shall verify the qualifications of bidders where the successful completion of the contract is, to a significant extent, dependent on the contractors qualifications.

(2) The Entity may verify the qualifications of bidders through either pre-qualification proceedings in accordance with Rule 42 or post-qualification proceedings in accordance with Rule 41.

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(3) Bidders qualifications for consultancy services shall be verified as part of the short listing process in accordance with rule 82, based on information provided in response to notices seeking expressions of interest.

Rule 41: Use of Post-Qualification

(1) Post-qualification may be used to determine whether the bidder who submitted the lowest evaluated responsive bid is qualified to perform the contract effectively.

(2) Post-qualification may be used where no pre-qualification has been carried out.

(3) Post-qualification proceedings shall be conducted in accordance with the provisions of Rule 78.

Rule 42: Use of Pre-Qualification

(1) Pre-qualification may be used to restrict bidding to a list of bidders who have been determined, in advance of the submission of bids, to possess the qualifications necessary to perform the contract satisfactorily.

(2) Pre-qualification may be used where

(a) the goods, works or services are highly complex, specialised or require detailed design or methodology;

(b) the costs of preparing a detailed bid would discourage competition unless pre-qualification were held; or

(c) the evaluation will be particularly detailed and the evaluation of a large number of bids would thus require excessive time and resources.

(3) Pre-qualification may also be used to pre-qua

Afg Procurement Rules of Procedure 120407 Eng

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