Presentation PPR 2004 7 Jan 2007

8/10/2019 Presentation PPR 2004 7 Jan 2007

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In the name of

AllahMost Gracious Most

Merciful


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Public Procurement Rules-2004


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What does Procurement Means

Procurementis the engineering term for all

purchases, supplies, tendering of construction

works, turnkey projects and consultancy

services.

PPRA definition of Contractor as contained inPublic Procurement Rules 2004 clarifies this in

more appropriate manner;

contractormeans a person, consultant, firm,

company or an organization who undertakes to

supply goods, services or works;


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GOVERNMENT OF SINDH

SERVICES, GENERAL ADMINISTRATION &

COORDINATION DEPARTMENT

a) The Public Procurement Rules 2004 shall have overriding effect on allexisting Procurement Rules, Regulations ;Manuals, Instructions I Ordersissued by the Government from time to time and shall apply to alldepartments, District Governments, autonomous, semi autonomousOrganizations I commissions and all offices being paid directly andindirectly out of or through finances of Govt.

Contd:


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b) All tenders, as required under PPRA, Public Procurement Rules 2004biddingdocuments, processing of bidding documents and final decisionstaken by the procuring departments I officers of Government of Sindhincluding District Governments must beplaced on the website of the Government of Sindh / www.sindh.gov.pkAny violation by any department / authority officer in the matter wouldresult in invalidation/cancellation of such tender and responsible officerto be proceeded under relevant disciplinary laws of the Government ofSindh.

c) The practice of enlisting and registration of contractors and suppliers bydepartments /district governments and government agencies I semigovernment agencies authorities is stopped with immediate effect and infuture all intending participants may bid for the tenders and final decisionmay be made by procuring authorities after analysis, evaluation andvetting of the technical and financial proposals.

d) The budget of Government of Sindh I Annual Development Programs(ADP) including periodical releases and periodical utilization progressreports must be placed on website of Government of Sindh todisseminate the information for general public and all stake holders:

FAZAL-U R-REH MANCHIEF SECRETARY SINDH


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Integrity Pact

Procurements exceeding the prescribed

limit shall be subject to an integrity

pact, as specified by regulation with

approval of the Federal Government,between the procuring agency and

the suppliers or contractors.


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Integrity PactDECLARATION OF FEES, COMMISSIONS AND BROKERAGE ETC.

PAYABLE BY THE SUPPLIERS/CONTRACTORS OF GOODS, SERVICES & WORKS

[The Seller/Supplier/Contractor] hereby declares its intention not to obtain or induce the

procurement of any contract, right, interest, privilege or other obligation or benefit fromGovernment of Pakistan or any administrative subdivision or agency thereof or any other entityowned or controlled by it (GoP) through any corrupt business practice.

Without limiting the generality of the foregoing, [the Seller/Supplier/Contractor] represents andwarrants that it has fully declared the brokerage, commission, fees etc. paid or payable toanyone and not given or agreed to give and shall not give or agree to give to anyone within oroutside Pakistan either directly or indirectly through any natural or juridical person, including itsaffiliate, agent, associate, broker, consultant, director, promoter, shareholder, sponsor orsubsidiary, any commission, gratification, bribe, findersfee or kickback, whether described asconsultation fee or otherwise, with the object of obtaining or including the procurement of acontract, right, interest, privilege or other obligation or benefit in whatsoever form from GoP,except that which has been expressly declared pursuant hereto.

[The Seller/Supplier/Contractor] certifies that it has made and will make full disclosure of allagreements and arrangements with all persons in respect of or related to the transaction withGoP and has not taken any action or will not take any action to circumvent the abovedeclaration, representation or warranty.

[The Seller/Supplier/Contractor] accepts full responsibility and strict liability for making any

false declaration, not making full disclosure, misrepresenting facts or taking any action likely todefeat the purpose of this declaration, representation and warranty. It agrees that any contract,right, interest, privilege or other obligation or benefit obtained or procured as aforesaid shall,without prejudice to any other right and remedies available to GoP under any law, contract orother instrument, be voidable at the option of GoP.

Notwithstanding any rights and remedies exercised by GoP in this regard, [theSeller/Supplier/Contractor] agrees to indemnify GoP for any loss or damage incurred by it onaccount of its corrupt business practices and further pay compensation to GoP in an amountequivalent to ten time the sum of any commission, gratification, bribe, finders fee or kickback

given by [the Seller/Supplier/Contractor] as aforesaid for the purpose of obtaining or inducingthe procurement of any contract, right, interest, privilege or other obligation or benefit inwhatsoever form from GoP.


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Public Procurement Rules, 2004 (PPR)

PPR 2004 has eliminated all discretions in procurement process,

The Vital Rules which have incorporated checks and balances indiscretion free Procurement System are;

Standardization of Procurement Process and tender documents,advertise all prequalification or tenders over Rs 100,000 thousand onProcuring Agency website as well as on the website of Government of

Sindh www.sindh.gov.pk, and in at least one English & one Urdu NationalDaily Newspaper, Min 15 days,

Provide Prequalification & Tender Documents to bidders which shallinclude all relevant information, including the detailed evaluationcriteria, Bid award method, Signing of Integrity Pact, Rights of bidders

for complain on evaluation report prior to award, Standard Conditions ofContract, Specifications which shall allow the widest possiblecompetition and shall not favour any single contractor or supplier norput others at a disadvantage, and elimination of culture of Gallop/ShortTender etc

Contd.
http://www.sindh.gov.pk/http://www.sindh.gov.pk/http://www.sindh.gov.pk/http://www.sindh.gov.pk/http://www.sindh.gov.pk/http://www.sindh.gov.pk/http://www.sindh.gov.pk/http://www.sindh.gov.pk/


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Announcement of the results of bid evaluation in the form of a reportgiving justification for acceptance or rejection of bids at least ten daysprior to the award of procurement contract, and bidders are allowed to

submit their comments/objections within 15 days, and no negotiations

with the bidder having submitted the lowest evaluated responsive bid or

with any other bidder

Finalizing of the Evaluation Report after examining all complaints,

Award of all Contracts to Consultants, Contractors & Suppliers only tothe Responsive Lowest Evaluated Bidder.

PEC Procedure to Award the Contract to Top Ranking Bidder eliminated

The Evaluation report and Contract to be made public after the Award


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LOWEST BIDDER MAY NOT BETHE RESPONSIVE LOWEST EVALUATED BIDDER

The general perception that when the tender is opened the Bid which isthe lowest at the time of Tender Opening is the Lowest Bid and shall beawarded the Tender.

After Tender Opening preliminary checks are required to determine theresponsiveness of all Bids.

A bid is non-responsive and not to be considered for evaluation, if themandatory requirements are not fulfilled by the bidder.

After the responsiveness check, the evaluation of only the ResponsiveBids are carried for determining the Cost of Bids, which in case ofEquipment Supply also includes the lifecycle cost of the equipment.

The evaluated tender prices of all Bids thus arrived are the responsiveevaluated prices, and the lowest amongst them is awarded the tender.


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1. It is received after the time and date fixed for its receipt,

2. Fails to Sign Integrity Pact, It is submitted through fax, telex, telegram or

e-mail.3. It is not accompanied with Bid Security, It is unsigned.

4. Its validity is less than specified, It is submitted for incomplete Scope of

Work, It indicates completion date later than specified.

5. It indicates that prices quoted are not firm during currency of the contract

except those prices where escalation/adjustments are permitted in the

Conditions of Contracts.10. It indicates that material to be supplied does not meet the eligibility

requirements.

11. It indicates that Bid Prices do not include the amount of taxes & duties.

12. If Bidder refuses to accept the arithmetic corrections.

13. It is materially and substantially different from the

Conditions/ Specifications of Bidding Documents.10. It provides Sub-contracting, contrary to conditions specified in the

Bidding Documents.

11.It fails to comply Mile-Stones/critical dates specified in Bidding

Documents.

12.The bidder is not valid license holder of the PEC.


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TI Pakistan Time Based Procedure of Routing the

Tenders & Contract Award

Evaluation

- Opening & Evaluation of tenders 07 Days

- Public Declaration of Evaluation Report 10 Days

- Finalization of ER 06 Days- Approval of ER by Project

Award Committee. 02 Days

- Approval of Award of Contract

by competent authority 02 DaysLetter of Award

Issue of Letter of Award by Department 02 Days

-Total Time 29 Days

Signing of Contract Agreement 04-28 Days


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Definitions

(g) emergency means natural calamities,disasters, accidents, war and operationalemergency which may give rise toabnormal situation requiring prompt andimmediate action to limit or avoid damage toperson, property or the environment;

(h) (j) repeat orders means procurementof the same commodity from the samesource without competition and includesenhancement of contracts;


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42. Alternative Methods of Procurements

(a) Petty PurchasesProcuring agencies may provide for petty

purchases where the object of the procurement is

below the financial limit of twenty five thousand rupees.Such procurement shall be exempt from therequirements of bidding or quotation of prices:

Provided that the procuring agencies shall ensure that

procurement of petty purchases is in conformity with theprinciples of procurement prescribed in rule 4:


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(b) Request for Quotations

A procuring agency shall engage in this method ofprocurement only if the following conditions exist, namely:-

(i) The cost of object of procurement is below the

prescribed limit of one hundred thousand rupees:Provided that the respective Boards of Autonomous bodies areauthorized to fix an appropriate limit for request for quotationsmethod of procurement subject to a maximum of rupees fivehundred thousand which will become financial limit under this sub-rule:

(ii) The object of the procurement has standard specifications;

(iii) Minimum of three quotations have been obtained; and

(iv) The object of the procurement is purchased from thesupplier offering the lowest price:


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(c) Direct Contracting

A procuring agency shall only engage in direct contracting if thefollowing conditions exist, namely:-

(i) The procurement concerns the acquisition of spare parts orsupplementary services from original manufacturer or supplier:

Provided that the same are not available from alternative sources;

(ii) Only one manufacturer or supplier exists for the required procurement:

Provided that the procuring agencies shall specify the appropriate

fora, which may authorize procurement of proprietary object after duediligence; and

contd


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(c) Direct Contracting

(iii) Where a change of supplier would oblige the procuring agency toacquire material having different technical specifications orcharacteristics and would result in incompatibility ordisproportionate technical difficulties in operation and maintenance:

Provided that the contract or contracts do not exceed three years induration;

(iv) repeat orders not exceeding fifteen per cent of the originalprocurement;

(v) in case of an emergency*:Provided that the procuring agencies shall specify appropriate fora

vested with necessary authority to declare an emergency;

(vi) when the price of goods, services or works is fixed by thegovernment or any other authority, agency or body duly authorizedby the Government, on its behalf, and

(vii) for purchase of motor cars from local original manufacturersor their authorized agents at manufacturers price.


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d) Negotiated Tendering

A procuring agency may engage in negotiated tendering with one ormore suppliers or contractors with or without prior publication of aprocurement notification. This procedure shall only be used when,-

(i) the supplies involved are manufactured purely for the purpose ofsupporting a specific piece of research or an experiment, a study or aparticular development;

(ii) for technical or artistic reasons, or for reasons connected with protectionof exclusive rights or intellectual property, the supplies may bemanufactured or delivered only by a particular supplier;

(iii) for reasons of extreme urgency brought about by events unforeseeableby the procuring agency, the time limits laid down for open and limitedbidding methods cannot be met. The circumstances invoked to justifyextreme urgency must not be attributable to the procuring agency:

Provided that any procuring agency desirous of using negotiated tenderingas a method of procurement shall record its reasons and justifications inwriting for resorting to negotiated tendering and shall place the same onrecord.


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43. On Account Payments

All procuring agencies shall make

prompt payments to suppliers and

contractors against their invoices orrunning bills within the time given in the

conditions of the contract, which shall not

exceed thirty days.


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48. Redressal of grievances by the procuring

Agency

(1) The procuring agency shall constitute a committee comprising ofodd number of persons, with proper powers and authorizations, toaddress the complaints of bidders that may occur prior to the entryinto force of the procurement contract.

(2) Any bidder feeling aggrieved by any act of the procuring agency after

the submission of his bid may lodge a written complaint concerning hisgrievances not later than fifteen days after the announcement of the bidevaluation report under rule 35.

(3) The committee shall investigate and decide upon the complaint withinfifteen days of the receipt of the complaint.

(4) Mere fact of lodging of a complaint shall not warrant suspension of theprocurement process.

(5) Any bidder not satisfied with the decision of the committee of theprocuring agency may lodge an appeal in the relevant court of jurisdiction.


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50. Mis-procurement

Any unauthorized breach of these rulesshall amount to mis-procurement.


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Blacklisting of suppliers and

contractors

The procuring agencies shall specify a

mechanism and manner to permanently or

temporarily bar, from participating in their

respective procurement proceedings, suppliersand contractors who either consistently fail to

provide satisfactory performances or are found

to be indulging in corrupt or fraudulent

practices. Such barring action shall beduly publicized and communicated to the

Authority:


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Presentation PPR 2004 7 Jan 2007

Documents

Transcript of Presentation PPR 2004 7 Jan 2007