Project Procurement Management Project Procurement Management

PROJECT PROCUREMENT MANAGEMENTPROJECT PROCUREMENT MANAGEMENT

BY BY

Engr. Dr. Attaullah Shah Engr. Dr. Attaullah Shah PhD (Civil Engg.) , MSc ( Str Engg.) , MBA , MA ( Eco) , MSc Envir design PhD (Civil Engg.) , MSc ( Str Engg.) , MBA , MA ( Eco) , MSc Envir design

BSc Civil Engg (Gold Medal) , Post Grad Dip in computer ( Gold medal) BSc Civil Engg (Gold Medal) , Post Grad Dip in computer ( Gold medal)

Project Director Allama Iqbal Open University Project Director Allama Iqbal Open University

Islaamabad Pakisatn.Islaamabad Pakisatn.pdaiou@yahoo.compdaiou@yahoo.com

pd@aiou.edu.pkpd@aiou.edu.pk

Cell: +92-333-5729809Cell: +92-333-5729809

Tel:+92-51-9057212Tel:+92-51-9057212

Fax:+92-51-9250100Fax:+92-51-9250100

““Property may be destroyed and money may lose its purchasing Property may be destroyed and money may lose its purchasing power; but character, health, knowledge and good judgment will power; but character, health, knowledge and good judgment will always be in demand under all conditions.”  Roger Babsonalways be in demand under all conditions.”  Roger Babson

““Men use care in purchasing a horse, and are neglectful in Men use care in purchasing a horse, and are neglectful in choosing friends”  John Muir.choosing friends”  John Muir.

Purchasing power is a license to purchase power.”  Raoul Purchasing power is a license to purchase power.”  Raoul Vaneigem Vaneigem

““Excellence in any department can be attained only by the labor Excellence in any department can be attained only by the labor of a lifetime; it is not to be purchased at a lesser price.”  Samuel of a lifetime; it is not to be purchased at a lesser price.”  Samuel JohnsonJohnson

The friendship that can cease has never been real.”  St. JeromeThe friendship that can cease has never been real.”  St. Jerome

“ “Sell not virtue to purchase wealth, nor liberty to purchase Sell not virtue to purchase wealth, nor liberty to purchase power.”  Benjamin Franklin power.”  Benjamin Franklin

Passion can never purchase what true love Passion can never purchase what true love desires: true intimacy, self-giving, and desires: true intimacy, self-giving, and commitment” commitment”

““Experts agree that the best type of Experts agree that the best type of computer for your individual needs is one computer for your individual needs is one that comes on the market about two days that comes on the market about two days after you actually purchase some other after you actually purchase some other computer.”  Dave Barrycomputer.”  Dave Barry

I saw a boy of the crew purchasing javelins I saw a boy of the crew purchasing javelins of them with bits of platters and broken of them with bits of platters and broken glass. Christopher Columbus glass. Christopher Columbus

Procurement Management Procurement Management Procurement is acquisition of goods and Procurement is acquisition of goods and

services.services.

Project Procurement Management includes Project Procurement Management includes the contract management and change the contract management and change control processes required to administer control processes required to administer contracts or purchase orders issued by contracts or purchase orders issued by authorized project team members.authorized project team members.

Plan Purchases and Acquisitions. Plan Purchases and Acquisitions. Determining what to purchase or acquire and Determining what to purchase or acquire and determining when and how.determining when and how. Purchase of equipmentPurchase of equipment Procurement of works Procurement of works Procurement of supplies etcProcurement of supplies etc

Plan Contracting Plan Contracting – documenting products, – documenting products, services, and results requirements and services, and results requirements and identifying potential sellers.identifying potential sellers. Developing the requisite documentsDeveloping the requisite documents Specification Specification No and make etc. No and make etc.

Procurement CycleProcurement Cycle

Request Seller Responses. Request Seller Responses. oobtaining information, quotations, bids, offers ,or btaining information, quotations, bids, offers ,or

proposals, as appropriate.proposals, as appropriate. Inviting bids Inviting bids Inviting quotations Inviting quotations Request for Proposals ( RPFs) Request for Proposals ( RPFs) Expression of Interest ( EOI) etc. Expression of Interest ( EOI) etc.

Select Sellers. Select Sellers. Reviewing offers, choosing among potential Reviewing offers, choosing among potential

sellers, and negotiating a written contract with sellers, and negotiating a written contract with each seller.each seller.

Tender/bids opening Tender/bids opening Evaluation and Assessment of bids Evaluation and Assessment of bids Negotiation if required and allowed Negotiation if required and allowed Selection of the seller/contractor Selection of the seller/contractor

Contract Administration Contract Administration – – Managing the contract and relationship between the Managing the contract and relationship between the

buyer and seller.buyer and seller. Reviewing and documenting how a seller is performing Reviewing and documenting how a seller is performing

or has performed to establish required corrective or has performed to establish required corrective actions actions

Provide a basis for future relationships with the seller, Provide a basis for future relationships with the seller, Managing contract-related changes and, when Managing contract-related changes and, when

appropriate, appropriate, Managing the contractual relationship with the outside Managing the contractual relationship with the outside

buyer.buyer. Contract Agreement Contract Agreement

Contract Closure Contract Closure – – completing and settling each contract, including the completing and settling each contract, including the

resolution of any open items,resolution of any open items, Closing each contract applicable to the project or a Closing each contract applicable to the project or a

project phase.project phase.

Definition of Government Definition of Government ProcurementProcurement

Procurement by government agenciesProcurement by government agenciesPublic Sector OrganizationsPublic Sector Organizations

•With major Govt. Equity With major Govt. Equity •With minor Govt. Equity With minor Govt. Equity •Under control of Govt. (No Govt. Equity)Under control of Govt. (No Govt. Equity)•Orgs with other forms of Govt. fundingOrgs with other forms of Govt. funding

Objectives of Procurement Objectives of Procurement ReformsReforms

Economy (Value for money)Economy (Value for money)EfficiencyEfficiencyTransparencyTransparencyAccountabilityAccountabilityCompetitivenessCompetitivenessFairnessFairness

Past Regulatory EnvironmentPast Regulatory Environment

Procurement under GFR Procurement under GFR Procurements by Corporate SectorProcurements by Corporate SectorProcurements by Statutory BodiesProcurements by Statutory BodiesClassified Procurements Classified Procurements

Present Regulatory FrameworkPresent Regulatory Framework

Enabling Legislation Enabling Legislation PPRA Ordinance 2002PPRA Ordinance 2002Subsidiary LegislationSubsidiary Legislation

•Public Procurement Rules, 2004Public Procurement Rules, 2004•Public Procurement Regulations Public Procurement Regulations

Composition of PPRA BoardComposition of PPRA Board Secretary, Finance Division: Secretary, Finance Division: ChairmanChairman Secretary, MoI &P: Secretary, MoI &P: MemberMember Secretary, D P Division:Secretary, D P Division: MemberMember Secretary, MoW & P:Secretary, MoW & P: MemberMember Secretary, Mo H & W:Secretary, Mo H & W: MemberMember Secretary, M o C:Secretary, M o C: MemberMember Syed Nizam Shah: Syed Nizam Shah: Private MemberPrivate Member Mr. Javed Hussain:Mr. Javed Hussain: Private MemberPrivate Member Mr. Munawar Hameed: Mr. Munawar Hameed: Private MemberPrivate Member Managing Director (PPRA): Managing Director (PPRA): MemberMember

Functions of PPRAFunctions of PPRA Monitor application of the procurement laws, Monitor application of the procurement laws,

rules, regulations, policies and procedures;rules, regulations, policies and procedures; Monitor the implementation of and evaluate Monitor the implementation of and evaluate

laws, rules, regulations, policies and laws, rules, regulations, policies and procedures, inspections and quality of procedures, inspections and quality of goods, services and works and recommend goods, services and works and recommend reformulation thereof;reformulation thereof;

Recommend to the Federal Government Recommend to the Federal Government revisions in or formulation of new revisions in or formulation of new procurement laws, rules and policies;procurement laws, rules and policies;

Functions (Contd.)Functions (Contd.) Make regulations and lay down code of Make regulations and lay down code of

ethics and procedures for public ethics and procedures for public procurement;procurement;

Monitor public procurement practices and Monitor public procurement practices and make recommendations to improve make recommendations to improve governance, transparency, accountability governance, transparency, accountability and quality of public procurement;and quality of public procurement;

Monitor overall performance of procuring Monitor overall performance of procuring agencies and make recommendations for agencies and make recommendations for improvements;improvements;

Functions (Contd.)Functions (Contd.) Provide and coordinate assistance to Provide and coordinate assistance to

procuring agencies for developing their procuring agencies for developing their institutional framework;institutional framework;

Call any functionary of procuring agencies Call any functionary of procuring agencies to provide assistance.to provide assistance.

Steps Involved in Redesigning Steps Involved in Redesigning New ProceduresNew Procedures

Study of Existing ProceduresStudy of Existing ProceduresIdentification of Redundant & Non Identification of Redundant & Non Transparent ProceduresTransparent ProceduresRedesigning New ProceduresRedesigning New ProceduresEmergency ProceduresEmergency Procedures

Procurement CycleProcurement CyclePlanning/Designing

specifications

Solicitation of Bids

Bids opening and Evaluation

Contract Award

Grievance Redressal

Contract Administratio

n

Payments

Pre-qualification

Public Procurement Rules, 2004Public Procurement Rules, 2004 Main Features Main Features

Protection to Intergovernmental Protection to Intergovernmental commitments & International Agencies commitments & International Agencies Integrity Pacts. Rs 10 million and Integrity Pacts. Rs 10 million and aboveaboveProcurement PlanningProcurement PlanningLimitation on Splitting of TendersLimitation on Splitting of TendersPromotion of stipulating generic Promotion of stipulating generic specificationsspecificationsBid Evaluation Criteria to be stated in Bid Evaluation Criteria to be stated in Invitation to BidsInvitation to BidsMethods of AdvertisementMethods of Advertisement

Public Procurement Rules, 2004 Public Procurement Rules, 2004 Main Features Main Features

Limitation on NegotiationsDate of Exchange Rates to be prescribed in the bidding documentsGrounds for rejection of bids to be intimated to unsuccessful Bidders

Prequalification/Qualification & Prequalification/Qualification & Disqualification of ContractsDisqualification of Contracts

Relevant ExperienceCapabilities – Personnel/EquipmentFinancial Position Managerial capabilities of the contractorDisqualification & Blacklisting of consultants and contractors

Solicitation of ProposalsSolicitation of ProposalsSelection of Appropriate bidding processWide advertisement for competitive bidsEvaluation criteria declared in advanceSelection of Appropriate Bidding Documents

Procedures of Open Competitive Procedures of Open Competitive BiddingBidding

Open Competitive Bidding, Principal MethodSingle Stage. Two Envelope Procedure.Two Stage Bidding Process.

•Technical proposal without price for uniform specifications.•Price proposals on the basis of uniform technical specifications.

Two Stage Two Envelope Bidding

•First stage technical proposal & financial proposal•Second Stage – Revised Technical Proposal – Supplementary Financial Proposal.

Alternative Methods of Alternative Methods of ProcurementProcurement

Petty PurchasesRequest for QuotationsDirect ContractingNegotiated Tendering

ImplementationImplementation

Information Dissemination Advisory Services Complaint Redressal Preliminary Dispute Resolution Mechanism

MonitoringMonitoring

Internal Pre/Post Audit ProceduresAudit by the Auditor General Procurement Audits by Private Sector Auditors

Grievance RedressalGrievance Redressal

Committees within procuring entity 2nd tier grievance redressalMohtasib’s officeJudicial Remedy

Payment RegulationsPayment Regulations

On account paymentsClosing of Contracts

Closing of ContractsClosing of Contracts

Resolution of Contractor’s ClaimsCompletion of Project ReportsHistorical Files to Retain: Requirements of Auditor GeneralPost Completion Evaluation

Contract AdministrationContract Administration

Execution & Management of ContractsAppropriate Funds Availability Payments to ContractorsTracking Supply SchedulesManagement of changes/variations to Procurements

PPRA ApproachPPRA ApproachTwo Step Regulations

•General Regulations applicable on all Public Sector Procuring AgenciesAdvertisement of Requirements, Time for submission of bids, Bid evaluation criteria and its publicity, level of advertisement, etc

•Organization Specific Regulations

Specific circumstances of PSE’s Delegation of Powers, Declaration of Emergency and Emergent Procurement Procedures, Payment Procedures etc.

One Envelope ProcedureOne Envelope Procedure Each bid shall comprise one single envelopes containing, Each bid shall comprise one single envelopes containing,

separately, financial proposal and technical proposal (if any) separately, financial proposal and technical proposal (if any) Open competitive bidding procedure used for most of the Open competitive bidding procedure used for most of the

procurement.procurement.

where the scope and technical specification of the procurements where the scope and technical specification of the procurements are very clear and unambiguous.are very clear and unambiguous.

For projects of repetitive nature and where a pool of registered For projects of repetitive nature and where a pool of registered contractors with the departments is available sometimes. contractors with the departments is available sometimes.

In this procurement mode, the financially lowest bid is generally In this procurement mode, the financially lowest bid is generally selected. selected.

Such procurements become victim of low bidder dilemma as the Such procurements become victim of low bidder dilemma as the bidding firms. bidding firms.

Poor history of successful procurements by this method. Poor history of successful procurements by this method.

Preferred for small and clear procurements. Preferred for small and clear procurements.

Procedures of Open competitive Bidding under PPRA Procedures of Open competitive Bidding under PPRA Rules 2004Rules 2004. .

Two Envelops ProcedureTwo Envelops Procedure

i)i) The bid shall comprise a single The bid shall comprise a single package containing two separate package containing two separate envelopes. Each envelope shall envelopes. Each envelope shall contain separately the financial contain separately the financial proposal and the technical proposal:proposal and the technical proposal:

ii)ii) The envelopes shall be marked as The envelopes shall be marked as “FINANCIAL PROPOSAL” and “FINANCIAL PROPOSAL” and “TECHNICLA PROPOSAL” in bold and “TECHNICLA PROPOSAL” in bold and legible letters to avoid confusion.legible letters to avoid confusion.

Two Stage Bidding ProcedureTwo Stage Bidding Procedure

First Stage (Tech Proposal ) First Stage (Tech Proposal )

i)i) The bidders shall submit, according to the The bidders shall submit, according to the required specifications, a technical proposal required specifications, a technical proposal without price,without price,

i)i) The technical proposal shall be evaluated in The technical proposal shall be evaluated in accordance with the specified evaluation accordance with the specified evaluation criteria and may be discussed with the criteria and may be discussed with the bidders regarding any deficiencies and bidders regarding any deficiencies and unsatisfactory technical features. unsatisfactory technical features.

Continued Continued

iii)iii) After such discussions, all the bidders shall be After such discussions, all the bidders shall be permitted to revise their respective technical permitted to revise their respective technical proposals to meet the requirements of the procuring proposals to meet the requirements of the procuring agency;agency;

iii)iii) The procuring agency may delete, modify or add any The procuring agency may delete, modify or add any aspect of the technical requirements or evaluation aspect of the technical requirements or evaluation criteria, or it may add new requirements or criteria criteria, or it may add new requirements or criteria not inconsistent with these rulesnot inconsistent with these rules..

Continued Continued Such revisions, deletions, modifications or Such revisions, deletions, modifications or

additions are communicated to all the bidders additions are communicated to all the bidders equally at the time of invitation to submit final equally at the time of invitation to submit final bids, and that sufficient time is allowed to the bids, and that sufficient time is allowed to the bidders to prepare their revised bids:bidders to prepare their revised bids:

Such allowance of time shall not be less than Such allowance of time shall not be less than fifteen days in the case of national competitive fifteen days in the case of national competitive bidding and thirty days in the case of international bidding and thirty days in the case of international competitive bidding;competitive bidding;

ContinuedContinued

v)v) Those bidders not willing to Those bidders not willing to conform their respective bids to the conform their respective bids to the procuring agency’s technical procuring agency’s technical requirements may be allowed to requirements may be allowed to withdraw from the bidding without withdraw from the bidding without forfeiture of their bid security.forfeiture of their bid security.

Second stage Second stage (Revised Tech Proposal) (Revised Tech Proposal)

i)i) The bidders, whose technical The bidders, whose technical proposals or bids have not been proposals or bids have not been rejected and who are willing, to rejected and who are willing, to conform their bids to the revised conform their bids to the revised technical requirements shall be technical requirements shall be invited to submit a revised invited to submit a revised technical proposal along with the technical proposal along with the financial proposal.financial proposal.

ContinuedContinued

ii)ii) The revised technical proposal and the The revised technical proposal and the financial proposal shall be opened at a financial proposal shall be opened at a time date and venue announced and time date and venue announced and communicated to the bidders in communicated to the bidders in advance; andadvance; and

iii)iii) The revised technical proposal and the The revised technical proposal and the financial proposal shall be evaluated in financial proposal shall be evaluated in the manner prescribed above. The bid the manner prescribed above. The bid found to be the lowest evaluated bid found to be the lowest evaluated bid shall be accepted.shall be accepted.

Best for projects of technical nature.Best for projects of technical nature. Where the firm’s capacity to deal with the complexity of Where the firm’s capacity to deal with the complexity of

the project is critical to the successful implementation of the project is critical to the successful implementation of the project the project

The scaling of technical and financial score depends on The scaling of technical and financial score depends on the nature of the project and relevant importance of the the nature of the project and relevant importance of the of each major criteriaof each major criteria

Typical range from 50:50 to 70:30 for technical: financial Typical range from 50:50 to 70:30 for technical: financial respectively. respectively.

For mega IT projects, where the technical expertise, For mega IT projects, where the technical expertise, global partnership and relevant experience of the firm global partnership and relevant experience of the firm are of paramount importance, the technical part can be are of paramount importance, the technical part can be given a score of 70 or even 80. given a score of 70 or even 80.

Technical Evaluation for ICT project at AIOU Criteria Nature of Firm

( 10) Offices and Outreach ( 10)

Methodology and approach

( 20)

Experience of similar works References. ( 10)

Financial soundness and bank references

( 10)

Key personnel for the project

( 10)

Total Marks ( 100)

In hand (25)

Completed ( 15)

Marks Max Individual firm: 02 Partnership: 03 Company: 05 Add 1 mark per year since establishment Max 5 marks

Islamabad office: 05 Other: 01 marks per office max: 05

For Min two similar works: 10 Add 2 marks per work.

For Min four works: 05 Add 01 marks for add work

National: 05 Intn’l; 5

Balance sheets: 05 Income Stat:03 Bank reference: 02

Team leader: 05 Core team members: 10

Obtained.

One Stage Two envelope One Stage Two envelope bidding procedure:-bidding procedure:-

i)i) The bid shall comprise a single package The bid shall comprise a single package containing two separate envelopes containing two separate envelopes containing separately the financial proposal containing separately the financial proposal and the technical proposal;and the technical proposal;

i)i) The envelopes shall be marked as The envelopes shall be marked as “FINANCIAL PROPOSAL” and TECHNICAL “FINANCIAL PROPOSAL” and TECHNICAL PROPOSAL” in bold and legible letters to PROPOSAL” in bold and legible letters to avoid confusion;avoid confusion;

Continued Continued iii)iii) initially, only the envelope marked “TECHNICAL initially, only the envelope marked “TECHNICAL

PROPOSAL” shall be opened;PROPOSAL” shall be opened;

iv)iv) The envelope marked as “FINANCIAL PROPOSAL” The envelope marked as “FINANCIAL PROPOSAL” shall be retained in the custody of the procuring shall be retained in the custody of the procuring agency without being opened.agency without being opened.

v)v) The technical proposal shall be evaluated on the laid The technical proposal shall be evaluated on the laid down criteria.down criteria.

vi)vi) The financial bids of the firm fulfilling the criteria are The financial bids of the firm fulfilling the criteria are opened and remaining are returned un-opened.opened and remaining are returned un-opened.

vii)vii) The lowest evaluated bid based on the technical and The lowest evaluated bid based on the technical and financial bids is approved. financial bids is approved.

Performance GuaranteePerformance Guarantee

Where needed and clearly expressed Where needed and clearly expressed in the bidding documents, the in the bidding documents, the procuring agency shall require the procuring agency shall require the successful bidder to furnish a successful bidder to furnish a performance guarantee which shall performance guarantee which shall not exceed ten per cent of the not exceed ten per cent of the contract amount.contract amount.

Two Stage Bidding ProcedureTwo Stage Bidding Procedure

First Stage (Tech Proposal) First Stage (Tech Proposal) The bidders shall submit, according to the The bidders shall submit, according to the

required specifications, a technical proposal required specifications, a technical proposal without price,without price,

The technical proposal shall be evaluated in The technical proposal shall be evaluated in accordance with the specified evaluation accordance with the specified evaluation criteria and may be discussed with the bidders criteria and may be discussed with the bidders regarding any deficiencies and unsatisfactory regarding any deficiencies and unsatisfactory technical features,technical features,

After such discussions, all the bidders shall be After such discussions, all the bidders shall be permitted to revise their respective technical permitted to revise their respective technical proposals to meet the requirements of the proposals to meet the requirements of the procuring agency;procuring agency;

The procuring agency may delete, modify or add The procuring agency may delete, modify or add any aspect of theany aspect of the

technical requirements or evaluation criteria, or it technical requirements or evaluation criteria, or it may add new requirements or criteria not may add new requirements or criteria not inconsistent with these rules.inconsistent with these rules.

Such revisions, deletions, modifications or Such revisions, deletions, modifications or additions are communicated to all the bidders additions are communicated to all the bidders equally at the time of invitation to submit final equally at the time of invitation to submit final bids, and that sufficient time is allowed to the bids, and that sufficient time is allowed to the bidders to prepare their revised bids:bidders to prepare their revised bids:

Such allowance of time shall not be less than Such allowance of time shall not be less than fifteen days in the case of national competitive fifteen days in the case of national competitive bidding and thirty days in the case of international bidding and thirty days in the case of international competitive bidding;competitive bidding;

Those bidders not willing to conform their Those bidders not willing to conform their respective bids to the procuring agency’s technical respective bids to the procuring agency’s technical requirements may be allowed to withdraw from requirements may be allowed to withdraw from the bidding without forfeiture of their bid security.the bidding without forfeiture of their bid security.

Second Stage: Second Stage: The bidders, whose technical proposals or bids The bidders, whose technical proposals or bids

have not been rejected and who are willing, to have not been rejected and who are willing, to conform their bids to the revised technical conform their bids to the revised technical requirements shall be invited to submit a requirements shall be invited to submit a revised technical proposal along with the revised technical proposal along with the financial proposal.financial proposal.

The revised technical proposal and the The revised technical proposal and the financial proposal shall be opened at a time financial proposal shall be opened at a time date and venue announced and date and venue announced and communicated to the bidders in advance; andcommunicated to the bidders in advance; and

The revised technical proposal and the The revised technical proposal and the financial proposal shall be evaluated in the financial proposal shall be evaluated in the manner prescribed above. The bid found to be manner prescribed above. The bid found to be the lowest evaluated bid shall be accepted.the lowest evaluated bid shall be accepted.

Best for Best for Best suited for Large Civil Works Best suited for Large Civil Works

projectsprojects, heavy equipment and , heavy equipment and complex projectscomplex projects

Where the available information and in-Where the available information and in-house expertise of the procuring agency house expertise of the procuring agency is not enough to deal with.is not enough to deal with.

The feedback of the firm may provide The feedback of the firm may provide some additional information on the some additional information on the procurement. procurement.

Procurement Policy GuidelinesProcurement Policy Guidelines PAKISTANI SUPPLIERS ARE TO BE PREFERREDPAKISTANI SUPPLIERS ARE TO BE PREFERRED A DOMESTIC WEIGHTING OF 15% IS TO BE GIVEN TO ANY A DOMESTIC WEIGHTING OF 15% IS TO BE GIVEN TO ANY

PAKISTANI SUPPLIER IN COMPETITION WITH A FOREIGN SUPPLIERPAKISTANI SUPPLIER IN COMPETITION WITH A FOREIGN SUPPLIER   GOODS SHALL BE SOURCED DIRECT FROM MANUFACTURERS GOODS SHALL BE SOURCED DIRECT FROM MANUFACTURERS

WHENEVER POSSIBLEWHENEVER POSSIBLE   BIDS SHOULD BE EVALUATED ON THE BASIS OF BEST VALUE BIDS SHOULD BE EVALUATED ON THE BASIS OF BEST VALUE

FOR MONEY RATHER THAN LOWEST PRICEFOR MONEY RATHER THAN LOWEST PRICE   WHEN PURCHASING GOODS, SERVICES ESPECIALLY IN CASE OF WHEN PURCHASING GOODS, SERVICES ESPECIALLY IN CASE OF

EXPENSIVE & TECHNICALLY COMPLEX EQUIPMENT PROCURING EXPENSIVE & TECHNICALLY COMPLEX EQUIPMENT PROCURING AGENCIES SHOULD PRE-QUALIFY BIDDERSAGENCIES SHOULD PRE-QUALIFY BIDDERS

  WHEN PURCHASING GOODS & SERVICES PROCURING AGENCIES WHEN PURCHASING GOODS & SERVICES PROCURING AGENCIES SHOULD EVALUATE TENDERS ON THE BASIS OF APPROPRIATE SHOULD EVALUATE TENDERS ON THE BASIS OF APPROPRIATE QUALITY RATHER THAN LOWEST PRICEQUALITY RATHER THAN LOWEST PRICE

  WHEN THE SAME KIND OF GOODS IS REQUIRED ON A REGULAR WHEN THE SAME KIND OF GOODS IS REQUIRED ON A REGULAR BASIS, PROCURING AGENCIES SHOULD NEGOTIATE FRAMEWORK BASIS, PROCURING AGENCIES SHOULD NEGOTIATE FRAMEWORK CONTRACTS ALLOWING REGULAR CALL-OFF OF FRESH STOCK. CONTRACTS ALLOWING REGULAR CALL-OFF OF FRESH STOCK.

WHERE THE PROCUREMENT OF GOODS AND SERVICES IS WHERE THE PROCUREMENT OF GOODS AND SERVICES IS ALREADY PRE-APPROVED BY THE PLANNING COMMISSION AND ALREADY PRE-APPROVED BY THE PLANNING COMMISSION AND LISTED PROCURING AGENCY’S PC-1, THERE IS NO FURTHER LISTED PROCURING AGENCY’S PC-1, THERE IS NO FURTHER NEED TO OBTAIN CONCEPTUAL APPROVAL TO PROCURE. THE PA NEED TO OBTAIN CONCEPTUAL APPROVAL TO PROCURE. THE PA CONCERNED MAY PROCEED TO INITIATE THE PROCUREMENT.CONCERNED MAY PROCEED TO INITIATE THE PROCUREMENT.

PRODUCTS PURCHASED BY PAs PROGRAMMES SHOULD HAVE PRODUCTS PURCHASED BY PAs PROGRAMMES SHOULD HAVE BEEN AVAILABLE IN THE MARKET FOR A MINIMUM PERIOD OF BEEN AVAILABLE IN THE MARKET FOR A MINIMUM PERIOD OF TWO YEARS.TWO YEARS.

  RESPONSE TIMES ALLOWED TO BIDDERS SHOULD BE AS RESPONSE TIMES ALLOWED TO BIDDERS SHOULD BE AS STATED IN THE PPR-2004.STATED IN THE PPR-2004.

  THE AMOUNT OF SECURITY REQUIRED FOR BIDS SHOULD NOT THE AMOUNT OF SECURITY REQUIRED FOR BIDS SHOULD NOT EXCEED 5% OF THE BID PRICE IN SINGLE STAGE TENDERS.EXCEED 5% OF THE BID PRICE IN SINGLE STAGE TENDERS.

  WHEN TWO-ENVELOPE BIDDING IS EMPLOYED THE BID WHEN TWO-ENVELOPE BIDDING IS EMPLOYED THE BID SECURITY SHALL BE SUBMITTED WITH THE FIRST (TECHNICAL SECURITY SHALL BE SUBMITTED WITH THE FIRST (TECHNICAL PROPOSAL) ENVELOPE TO BE OPENED, SO THAT NON-PROPOSAL) ENVELOPE TO BE OPENED, SO THAT NON-RESPONSIVE BIDS MAY BE IMMEDIATELY REJECTED BEFORE RESPONSIVE BIDS MAY BE IMMEDIATELY REJECTED BEFORE TECHNICAL EVALUATION.TECHNICAL EVALUATION.

WHEN TWO-ENVELOPE BIDDING IS EMPLOYED THE AMOUNT WHEN TWO-ENVELOPE BIDDING IS EMPLOYED THE AMOUNT OF BID SECURITY REQUIRED SHALL BE A FIXED AMOUNT OF BID SECURITY REQUIRED SHALL BE A FIXED AMOUNT COMMON TO ALL BIDDERS. THIS FIXED AMOUNT SHALL COMMON TO ALL BIDDERS. THIS FIXED AMOUNT SHALL NOT EXCEED 5% OF THE PA’S BUDGET FOR THE NOT EXCEED 5% OF THE PA’S BUDGET FOR THE PROCUREMENT CONCERNED.PROCUREMENT CONCERNED.

THE AMOUNT OF SECURITY REQUIRED FOR PERFORMANCE THE AMOUNT OF SECURITY REQUIRED FOR PERFORMANCE GUARANTEES SHALL BE STANDARDISED NOT EXCEEDING GUARANTEES SHALL BE STANDARDISED NOT EXCEEDING 10% OF CONTRACT VALUE10% OF CONTRACT VALUE

Thank YouThank You