Rules of public procurement rule

8/16/2019 Rules of public procurement rule

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Public Procurement Reforms andu uBY

DirectorPublic Procurement Regulatory Authority

Islamabad


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Format of Presentation

Ills of the Old system

Previous Procurement Practices

Old Regulatory Regime The GOP’s Initiative in Procurement Reforms

Objectives, status, applicability of PP Rules &

Regulations

Salient Features of Public ProcurementFramework

Monitoring and evaluation

Capacity Building

Way Forward


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Ills of Old Systemttr uta e to egu at ons roce ures

Multiple Procurement Regulations – mostly

ou a e

Non Transparent Procurement procedures

war genu ne us ness

Complicated procedures discourage sound,

Restrictive bidding on contracts

ow overa e c ency In-efficient and corrupt contractors and buyers


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Ills of old S stem Bid negotiation often leads to kick back

Bid negotiations discourage bidders to

quote t e r est pr ces

In efficient dispute resolution mechanism No law providing effective protection

a ainst collusion & corru tion

Most of the Govt. projects had Cost


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Old Regulatory Regime

No Procurement Law

Multiplicity of Procurement Regulatory regimes

General Financial Rules Procedures of the Public Sector Enterprises

Procurement Regulations of International

lending Agencies No regu ations or procurement o ervices

Works

Arbitration Act 1940

–


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Reform Initiatives Establishment of Public Procurement

Regulatory Authority by PPRA Ordinance 2002

Promulgation of PP Rules 2004 ProcurementLaw

Monitoring and Implementation of PP Rules-

2004 Re – engineering of Procurement Manuals /

Procedures of Public Sector Entities

s a s men o e or a(www.ppra.org.pk)


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Ob ectives of Procurement Reforms Economy (Value for money).

Efficiency..

Accountability.

a r ompe on.

Good Governance.


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Salient Features of Public Procurement Framework• Procurement Planning Rule-08• -

• Qualification/Disqualification Rule-17-18

• Methods of Procurements Rule-36

• O enin Evaluation Rule-28 30 &33 & Rejection of Bids

• Acce tance & Award of Rule-38Contracts

• Grievance Redressal Rule-48

Detail


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Salient Features of Public Procurement Framework

Generic Specifications Rule-10

-

bid preparation

- -

stated in Tender Documents

-

made publ ic

-

Detail


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Monitorin & Evaluation PPRAmonitorsall public procurement tenders in, published

, .

Deviations to PP Rules are regularly pointed out to therespective procuring agencies for taking correctivemeasures

Violations committed by procuring agencies have. . - .

The tenders uploaded in 2004-05 were 11,905 and it hasrownto25479 in2010-11withan increaseof 46 .


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Monitoring & EvaluationMonitoring & Evaluation


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Capacity BuildingGFR

E-procurementProcurement Law

Future

ra n ng rograms on

PP-Rules 2004


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Way Forward

Enact a modern transparent Public Procurement

Law

Strengthening monitoring & Evaluation

Consequences of Mis-procurement

,

requirements, etc.

Create own Procurement Standard Bidding

ocumen s s

Constitute a grievance redressal authority


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an ou


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• Rule-08: Procurement PlanningPA to devise a mechanism for planning in detail for proposed procurements in

, .• Rule-09: Limitation on splitting or regrouping of proposed procurement

PAtoannounce inappropriatemanner all proposedprocurements of financial year without s littin o re rou in and advertise the annual re uirement on PPRA’website.

• Rule-10: Specif icationsS ecifications should be eneric ensurin widest ossible com etition and ifmentioning the brand name is essential, the words “or equivalent” should be used.

• Rule-11: Approval mechanismPA to provide clear authorization and delegation of powers for differentprocurements

• Rule-12: Methods of advertisementProcurements over Rs.100,000 – 02 Million (advertise on PPRA website and may

advertise inprint media.Procurements over Rs.02 Million (advertised on the PPRA’s website andnewspapers, at least twonational dailies,havingwidecirculation.


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• Rule-13: Response timeNational Competitive Bidding --not less than 15 days

-- .• Rule-14: Exceptions

Two exceptions to advertisement: Procurements of national security and

Rule-15: Pre-qualification of suppliers and contractorsPA may engage, prior to floating of tenders, in pre-qualification of bidders in case

, , .

• Rule-16: Pre-qualification processPA to provide pre-qualification documents for a price and other pre-qualificationinstructions for bidders and su liers.

• Rule-17: Qualification of suppliers and contractorsPA to demand information from the suppliers, whether already pre-qualified ornot, based on the rofessional, technical, financial, le al or mana erial

competence to determine their credibility.• Rule-18: Disqualification of suppliers and contractors

PA may disqualify a supplier or contractor if he submits false and incompleteinformation regarding his qualification.


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• Rule-19: Blacklisting of suppliers and contractorsPAs to devise a mechanismto permanently or temporarily bar a supplier or contractor

baringactiontobecommunicated to theAuthority.

• Rule-20: Principal method of procurementPA t us o en com etitiv biddin a th rinci al method of rocurement for

procurement of goods, servicesandworks.

• Rule-21: Open competitive biddingPAs shall engage inopencompetitive bidding if thecost of object tobe procured is more

than theprescribed financial limit of Rs. One

Rule-22: Submission of bids

Bids tosubmitted insealedpackage inamanner that thecontentsare fullyenclosedandcannot beknownuntil dul opened.

• Rule-23: Bidding documentsPAs to formulate precise and unambiguous bidding documents to be made available to

e ers a er pu ca on o nv a on o .• Rule-24: Reservations and preferencePAs to allowprospective bidders to participate in procuring procedures without regard to

biddersor prohibitssomenationalities inaccordancewith thepolicy of Federal Govt.


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• Rule-25: Bid securityThe PA may require the bidder to furnish the bid security not exceeding 5% of the

.• Rule-26: Bid validity

Bid validity period must be specified. Bids shall be valid for the time periodspecified in the bidding documents. P.A shall process the bid within the bidva ypero .

• Rule-27: Extension of time for submission of bidsPA can extend the deadline for the submission of bid if it finds the extension

.

• Rule-28: Opening of bidsThe date of opening and the last for the submission of the bid shall be the same.

The bids shall be opened at least thirty minutes after the deadline for thesu mssono s.

• Rule-29: Evaluation criteriaPA to formulate an appropriate unambiguous evaluation criterion listing all the

• Rule-30: Evaluation of bids All bids to be evaluated in accordance with the evaluation criterion and other termsprescribed inbiddingdocumentsandsaveasprovidedfor insub-clause(iv)o cause c o u n evaua on cr eron s a use o evauae ahasnot beenspecified in biddingdocuments.


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• Rule-31: Clarification of bidsBidder shall not alter or modify the bidafter the bids have been opened. PAmay

seekclarification inwriting tothebid that donot change thesubstanceof thebid.

• Rule-32: Discriminatory and diff icult condi tionsPA not to im ose an condition difficult to meet and which discriminates

betweenthebidders,

• Rule-33: Rejection of bids

proposal. PA to give notice of rejection of all bids promptly to suppliers and

bidders, communicate reasons for rejection upon request by the bidder but need

not justify themand incur no liability towards suppliersor contractors.

• Rule-34: Re-biddingPA may call for re-bidding if it has rejected all bids under Rule 33. PA to assess

conditionas it maydeemnecessary.

• Rule-35: Announcement of evaluation

justification for acceptance or rejection at least ten days prior to the award of

procurement contract.


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d) Two stage – two envelope bidding procedure

(First stage) Bid containing single package havingFINANCIAL PROPOSAL

and TECHNICAL PROPOSAL. The later shall be opened first. PAto discuss

the TECHNICAL PROPOSAL with the bidder according to PA’s technical

requirements.

(Second stage) PA after discussion with the bidders on the technicalspecifications shall allow the bidders to submit a revised technical proposal

and supplementary financial proposal, according to the technical

requirement whichshall beopenedat agivendate, timeandvenue.


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• Rule-37: Conditions for different bidding proceduresSingle stage two envelope (bids are to be evaluated on technical and financial

.Two stage bidding procedure (adapted in large and complex contracts wheretechnically unequal proposals are likely to be encountered and two or more

.

Two stage two envelope bidding procedure (used where alternativetechnically proposals are possible e.g. machinery, equipment or manufacturingplant.

• Rule-38: Acceptance of bidsThe bidder with the lowest evaluated bid, if not in conflict with any other law,

rules, regulations or policy of the Federal Government, shall be awarded theprocurement contract, wt n t eorgna or exten e pero o va ty.

• Rule-39: Performance guaranteeIf deemed necessary, PA shall require the successful bidder to furnish aper ormanceguaraneeno excee ng enpercen o econrac .

• Rule-40: Limitation of negotiationsThereshall benonegotiationwiththe lowest evaluatedor anyother bidder


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• Rule-44: Entry into force of the procurement contract

partiesor fromthedateof fulfillment of certainconditions.

b) No formal signing of contract: From the date of the notice of theacce tanceo thebid fromthedateo the urchaseorder

• Rule-45: Closing of contractOnissuanceof overall deliverycertificateor takingover certificate required tobeissued within 30 days of final taking over of goods/receiving the deliverables or completiono work.

• Rule-46: Record of procurement proceedings

PAshall maintain therecordfor aminimumperiodof 05years.• Rule-47: Public access and transparency

A document relating to evaluation and award of contract to be made public. PAto withhold any information which is against the public interest or proprietary

emssu ec opror approva o e u or y.


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Rules of public procurement rule

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