PPRA-2004-Public Procurement Rules 2004-1.pptx

Public Procurement Rules 2004 detailed power point presentation. Please contact at whats up [phone] for detail of each slide.Tahir Mahmood

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2. PUBLIC PROCUREMENT RULES 2004 TAHIR MAHMOOD Jnr.Executive (Procurement) 2

3. FLOW OF PRESENTATION Definitions Scope and Applicability Principles of Procurement Language Procurement Planning Pre-Qualification Procurement Advertisement Bids 9. Opening Evaluation and Closing of Bids 10. Methods of Procurement 11. Procedure for Open Competitive Bidding 12. Conditions for Use of Competitive Bidding 13. Acceptance of Bids and Award of Procurement Contracts 14. Entry into Force and Closing of Procurement Contract. 15.Maintenance of Record and Freedom of Information 16. Redressal of Grievances and Settle of Disputes 17. Pre-Qualification Process 18. Qualification of Suppliers and Contractor 19. Blacklisting of Suppliers and Contractors 20. Miscellaneous 3

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5. DEFINITIONS Bid Bidder Black Listed Call Off Order Closed Framework Agreement Competitive Bidding Contractor Contract Corrupt and Fraudulent Practices Cross debarred Emergency 5

6. DEFINITIONS E-procurement Forece Account Framework Agreement Most advantageous Bid Ordinance Repeat Order Supplier Unsolicited Project Proposal Value for Money 6

7. 2.SCOPE AND APPLICABILITY Apply to all procurements made by all Federal government procuring agencies, whether within or outside Pakistan. 7

8. 3.PRINCIPLES OF PROCUREMENTS Fair and Transparent Procurement: Value for Money Efficient and Economical Process 8

9. 4.LANGUAGE Language Requirements Local Language Use Original Documentation Economy and Efficiency Dispute Resolution 9

10. 5. PROCUREMENT PLANNING Timeline for Compliance Detailed Planning Objective · Considerations Limitation on splitting or regrouping of the proposed procurement Announcement of Proposed Procurements Regulations and Approval No Splitting or Regrouping Advance Advertisement 10

11. 5. PROCUREMENT PLANNING Specifications Widest Possible Competition Generic Specifications Use of Brand Names Disposal of Assets Accurate Description of Assets Approval mechanism . Authorization and Delegation Approval Requirement 11

12. 6.PREQUALIFICATION, Purpose of Pre-qualification Applicability Criteria for Pre-qualification : a. Relevant experience and past performance of the bidder. b. Capabilities related to personnel, equipment, and plant. c. Financial position of the bidder. d. Managerial capability of the bidder. e. Any other factor deemed relevant by the procuring agency, as long as it is consistent with the rules. Sole Basis for Pre-qualification : 12

13. 7. PROCUREMENT ADVERTISEMENTS Methods of advertisement Advertisement for Procurements (PKR 500,000 to 3,000,000) Lower Financial Limit Advertisement for Procurements (Above PKR 3,000,000) Agency's Own Website Exceptions with Prior Approval : N ational security, I ntellectual property 13

14. 7. PROCUREMENT ADVERTISEMENTS Response Time Response Time for Bids or Proposals: -15 Days -30 Days Emergency Procurements Advertisement Requirements Calculation of Response Time Exceptions 14

15. 8.BIDS Submission of Bids Sealed Submission : Specification by Procuring Agency 15

16. 8.BIDS Bidding Documents Invitation to bid Instructions to bidders Form of bid Form of contract General or special conditions of contract Specifications, drawings, or performance criteria List of goods or bill of quantities 16

17. 8.BIDS Bidding Documents Delivery time or completion schedule Qualification criteria (if applicable) Bid evaluation criteria Format of required securities (if applicable) Details of standards used in assessing quality (if applicable) Any other necessary details consistent with the rules 17

18. 8.BIDS Reservation and Preference Nationality of Bidders Preference for Domestic Suppliers or Contractors Works projects Certain goods manufactured, mined, extracted, and grown in Pakistan Disposal of assets impacting national security Percentage of Preference 18

19. 8.BIDS Bid Security Requirement for Bid Security Should not exceed five percent of the estimated value of the procurement Alternative to Bid Security Bid Validity Bid Validity Period Duration of Bid Validity Extension of Bid Validity Conditions for Bidders 19

20. 8.BIDS Extension in Time of Submission of Bids Prescribed Deadline for Bids Extension of Deadline Record the reasons for the extension in writing. Ensure the extension is communicated in an equal opportunity manner to all prospective bidders. Advertisement of Extension 20

21. 9. OPENING, EVALUATION AND REJECTION OF BIDS Opening Of Bids Simultaneous Dates Timing of Bid Opening Public Opening Minutes of the bid opening must be recorded Rejection of Late Bids 21

22. 9. OPENING, EVALUATION AND REJECTION OF BIDS Evaluation Criteria Formulation of Evaluation Criteria Importance of Clear Evaluation Criteria Evaluation of Bids Adherence to Evaluation Criteria Currency Conversion & Exchange Rate Applicable Rules and Regulations 22

23. 9. OPENING, EVALUATION AND REJECTION OF BIDS Clarification of Bids Bid Alteration Restrictions Clarification Process Discriminatory and difficult conditions Prohibition of Discriminatory Conditions**: Difficulty of Conditions Standard of Evaluation 23

24. 9. OPENING, EVALUATION AND REJECTION OF BIDS Rejection of bids Authority to Reject Bids Communication of Grounds for Rejection Liability and Notice Re-Bidding Re-bidding Process Assessment and Revision Announcement of evaluation reports Timing of Announcement Separate Evaluation for Technical Proposals 24

25. 10. METHODS OF PROCUREMENT Principal method of procurement Alternative methods of procurements Petty Purchases (PKR-100,000)-No Quotation Request For Quotations (PKR-100,000-PKR-500,00)-3-Quotations Direct Contracting-(Single Tender) Negotiated Tendering –(With on or more)-With/without proc notification Force Account Direct Contracting With State-Owned Entities Mechanism for import of commodities to meet the demand-supply gap 25

26. 10. METHODS OF PROCUREMENT Direct Contracting Acquisition of Spare Parts or Supplementary Services Sole Manufacturer or Supplier Change of Supplier Issues Repeat Orders Emergency Situations Government Fixed Prices Motor Vehicle Purchases 26

27. 10. METHODS OF PROCUREMENT Negotiating Tender Support for Research or Development Technical, Artistic, or Intellectual Property Reasons Extreme Urgency Documentation Requirement 27

28. 10. METHODS OF PROCUREMENT Force Account Small, Scattered, or Remote Works Ongoing Operations Urgent Repairs and National Heritage Unavoidable Risk Extreme Urgencies Sensitive Projects Execution by State-Owned Entity Limited Competition Among State-Owned Entities 28

29. 10. METHODS OF PROCUREMENT Direct Contracting with State Owned Entities Eligibility Exclusive Use of Own Resources Limited Competition Among Eligible Organizations Price Reasonability Mechanism 29

30. 10. METHODS OF PROCUREMENT . - Procurement Of Common-use Items, Services And Commodities Through Framework Agreements Purpose and Scope Annual Estimates Prequalification and Selection Types of Framework Agreements Adding New Supliers Regulatory Framework Price Adjustment for Framework Agreements Price Adjustment Provision Approval Process 30

31. 11. PROCEDURES OF OPEN COMPETITIVE BIDDING Single stage – one envelope procedure Single Envelope Requirement Opening and Evaluation Single stage – two envelope procedure Bid Structure Procedure 31

32. 11. PROCEDURES OF OPEN COMPETITIVE BIDDING Two Stage First Stage Submission of Technical Proposal Evaluation of Technical Proposals Revision of Technical Proposals Time Allowance for Revisions Withdrawal Option Second Stage Submission of Revised Proposals Opening and Evaluation of Proposals Selection of the m ost Advantageous Bid 32

33. 11. PROCEDURES OF OPEN COMPETITIVE BIDDING Two stage - two envelope bidding procedure First Stage Submission of Bid Opening of Envelopes Discussion and Evaluation of Technical Proposals Option for Withdrawal Second Stage Submission of Revised Proposals Opening and Evaluation of Proposals Selection of Most Advantageous Bid 33

34. 12. CONDITIONS FOR USE OF BIDDING PROCEDURES Single stage one envelope bidding procedure Both technical and financial aspects are evaluated simultaneously. Single stage two envelope bidding procedure Used when bids are evaluated on technical and financial grounds separately. Price is considered only after the technical evaluation is completed. Suitable for ensuring that technical considerations are the primary factor in the initial evaluation phase. 34

35. 12. CONDITIONS FOR USE OF BIDDING PROCEDURES Two stage bidding procedure Adopted for large and complex contracts. Used when technically unequal proposals may be submitted or when multiple technically acceptable solutions are available. 35

36. 12. CONDITIONS FOR USE OF BIDDING PROCEDURES Two Stage Two Envelope Bidding Method Used for procurements where alternative technical proposals are possible, such as for certain types of machinery, equipment, or manufacturing plants. Combines the features of both the two-stage procedure and the two-envelope procedure: 36

37. 13. ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS Acceptance of bids Award Criteria Compliance Timing 37

38. 13. ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS Consideration of Single Bid Meets the evaluation criteria and ensures compliance with specifications and other terms & conditions expressed in advertisement or bid solicitation documents. Is not in conflict with any provision of the Ordinance. Conforms to the technical specifications. Has financial conformance in terms of rate reasonability. Exceptions - Single bids, except unsolicited proposals, shall not be entertained in pre-qualification proceedings . Decision-Making 38

39. 13. ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS Performance guarantee Requirement- successful bidder Conditions Expressed in the bidding documents. Shall not exceed ten percent 39

40. 13. ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS Letter of credit Incorporation Application Shipments and custom clearance LC and ICC incoterms Risk Mitigation The procuring agency’s bank The bidder’s bank 40

41. 13. ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS Limitation on negotiations. Permitted Negotiations Negotiations can focus on: Methodology Work plan Staffing Special conditions of the contract Role of Regulatory Authority 41

42. 13. ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS Confidentiality Information Protection Timing 42

43. 14. ENTRY INTO FORCE AND CLOSING OF THE PROCUREMENT CONTRACT Entry into force of the procurement contract No Formal Signing Required Notice Of Acceptance Of The Bid Or Purchase Order Is Given Formal Signing Required Procuring Agency And Successful Bidder Contingent Conditions 43

44. 14. ENTRY INTO FORCE AND CLOSING OF THE PROCUREMENT CONTRACT- Closing of contract.- Contract Closure An overall delivery certificate or Taking over certificate. within thirty days Submit the final bill and Substantial audit. 44

45. 14. ENTRY INTO FORCE AND CLOSING OF THE PROCUREMENT CONTRACT Closing of contract.- Defect Liability or Maintenance Period Defect liability certificate Within thirty days Settlement of Claims Payment of the final bill and closure of the contract for final audit must not exceed sixty days. 45

46. 15. MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION Record of procurement proceedings Maintenance Requirement- A ll associated documentation. Duration-Minimum period of 5 years. Regulatory Compliance Prior approval from the authority. 46

47. 15. MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION Public access and transparency Disclosure Requirement- Upon awarding a contract Exceptional Cases Proprietary nature. Against the public interest Prior approval from the authority. 47

48. 16. REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES Committee Establishment Before Submitting Bids Againts E ligibility parameters, Against valuation criteria, or Against any other terms and conditions in the bidding documents that contravene the procurement regulatory framework. After submitting their bid within seven days of the announcement of the technical evaluation report or within five days after the issuance of the final evaluation report. 48

49. 16. REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES Complaints filed after the issuance of the final evaluation report If a complaint is filed against the technical evaluation report, the GRC shall suspend the procurement proceedings. Complaints filed after the issuance of the final evaluation report cannot challenge the technical evaluation unless a single stage single envelope bidding procedure is adopted. 49

50. 16. REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES Redressal of grievances by the procuring agency . Investigation and Decision-GRD 10 days Appeal Process-30 Days- Prescribe Fee The decision of the Authority is final. 50

51. 16. REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES Arbitration Dispute Resolution-after the contract comes into force. Method of Arbitration- As included in Proc Contract Consistent with the laws of Pakistan. 51

52. 17. PRE-QUALIFICATION PROCESS Announcement of Pre-qualification Information Access to Pre-qualification Documents: Notification of Pre-qualification Results: Communication with Non-Pre-qualified Suppliers or Contractors Regulatory Framework Authority to Require Information Recording of Qualification Decisions 52

53. 18 . DISQUALIFICATION OF SUPPLIERS AND CONTRACTORS Grounds for Disqualification information submitted by them regarding their qualifications was: False Materially inaccurate Incomplete Ensuring Accuracy of Information 53

54. 19.BLACKLISTING OF SUPPLIERS AND CONTRACTORS Grounds For Blacklisting Suppliers and contractors may be blacklisted for various reasons: For up to 10 years-corrupt and fraudulent practices. For up to 3 years if they fail to perform contractual obligations or breach contracts due to incapacity or other reasons, after arbitration or dispute settlement proceedings. For up to 6 months if they fail to comply with bid securing declarations, without involving corrupt or fraudulent practices. 54

55. 19.BLACKLISTING OF SUPPLIERS AND CONTRACTORS Communication and Publicization : Review Process : Bidder-Review Petition-30 days Authority-Decision 90 days. Foreign Blacklisting : Obligation to Perform Existing Contracts 55

56. 20. MISCELLANEOUS E-Procurement E-Procurement Process Use of ICT and Digital Means Scope of E-Procurement Regulations and Guidelines 56

57. 20. MISCELLANEOUS Mis-procurement Overriding effect Supremacy of These Rules Transitional Provision Notice for invitation of bids was issued before the commencement of these rules. Re-issue the notice for procurement under these rules 57

58. 20. MISCELLANEOUS International And Inter-governmental Commitments Of The Federal Government Conflict with International Obligations. Provisions. Integrity Pack Integrity Pact Requirement Regulation and Approval Parties Involved 58