Procurement management in PS. ppt_MCMC.pptx

Process of procurement in Public sector with special reference to goods and services

1. Dr. Qasim Khan Director, PMU Procurement Regime under KPPRA

2. Sequence Explaining Public Procurement Explaining Procurement Lifecycle Direct Contracting: Way & Means Record Keeping Q&A

3. Defining Public Procurement : (Section ( 2)(1)(s) A cquisition of goods, services or construction of any works, financed wholly or partly out of the public fund; and includes disposal of public assets and commercial transactions between PE & private party, in terms of which the private party is allowed to-

4. Defining Public Procurement : (Section ( 2)(1)(s) ( i ) perform a PE’s assigned functions, including operations and management, on its behalf; (ii) assume the use of public asset; or (iii) receive a benefit either from budget or revenue of the Government or from fees or charges to be collected by the private party for performing the PE’s function”;

5. Procuring “Best Evaluated Bid ” (Section (2)(1) (c) ( i )   For goods and consulting services, the highest-ranking fair bid where quality and cost are primary and secondary consideration respectively; and for which the weightage for technical and financial bid shall be defined in evaluation criteria, and in no case technical weightage be less than financial weightage;

6. Procuring “Best Evaluated Bid ” (Section (2)(1) (c) ( ii)   complex professional engineering works , including but not limited to tunnels, bridges, high altitudes tough terrain roads, dams, canals etc., or any other such works of any civil, electrical, mechanical, hydraulic, communication, power engineering, geological or mining character etc., determined to be of large-scale and complex nature by a technical committee to be constituted at P&DD in the manner prescribed , where quality and cost are the primary and secondary consideration respectively, the highest ranking fair bid ; Provided that all such cases be referred to the said technical committee by the administrative head of the department concerned; and

7. Procuring “Best Evaluated Bid ” (Section (2)(1) (c) works , other than mentioned in sub-clause (ii) above, and the non- consulting services , the lowest responsive financial bid amongst technically responsive bids ;

8. Procurement Planning (S.22,R.30) Constitution of Procurement Committee (R.32) Developing BSDs (BOQs, Specs, Drawing, Design ) R.33 Enlistment/ Prequalification ( if any ) (R.32-A) Solicitation of Bids (S.24 & 25) Bids Opening & Evaluation (R.37,38 &39) Announcement of BER (R.45) Grievances Redressal (S.35) Contract Administration (R.50 & 51) A Standardized Procurement Lifecycle

9. Developing Annual Procurement Plan (APP) ( Under Section 22 of KPPRA Act & Rule 30 of the Procurement Rules 2014 , Name of Procuring Entity: ____________ S # Brief d escription of Procurement Items / objects / Package Estimated Cost Procurement Method Date of Initiation of Procurement Process (Tentative) Date of Award of contract (Tentative) Date of Completion of Contract (Tentative) Remarks (if any) Prepared by Procurement Officer (Name & Designation) Approved by Head of PE (Name & Designation)

10. Procurement Committee: (S.34 & R.32) Who shall constitute the procurement committee? What shall be the composition? (Mandatory & optional) What shall be the nature of the committee? (Odd or even)

11. TORs of Procurement Committee To prepare & recommend approval (NIT & BSD) To open & evaluate the bids To approve the Bid Evaluation Report To recommend successful bidder for award of contract

12. Developing NIT/ IFB / TENDER NOTICE N ame & address of PE An appropriate description of the assignment providing scope of work/ detail of items to be procured; Method of Procurement to be employed; Source for BSDs & requisite details pertaining to the process; Provision of Bid Security Deadline, time & place for the bid submission.

13. Components of SBDs Standard Bidding Documents (SBDs) are comprised of two parts Part One: fixed/unchangeable a. Instruction to the Bidders b. General Conditions of the Contract (GCC) Part Two: procurement specific a. Invitation for Bids (IFB) b. Bid Data Sheet (BDS) c. Special Conditions of the Contract (SCC) d. Schedule of Requirement (SOR) e. Evaluation Criteria

14. Procurement of Goods & Services BSDs shall include: SOR/ TORs , the evaluation criteria , the extent of bid validity , quantity , quality & specifications ; qualification and experience , securities , approach & methodology , work plan and delivery schedule , pre-shipment inspection where applicable, schedule of payments and GCC & SCC

15. Procurement of Works In case of procurement of works, SBDs shall include: Technical specifications , drawings & designs , BOQs & Estimated costs whatever applicable , E valuation criteria, expected commencement of contract and time period for completion , bid validity , securities demanded, payment schedule , & GCC & SCC

16. Bid Evaluation as per Evaluation Criteria (S.28) All bids shall be evaluated in accordance with the evaluation criteria and other terms and conditions set forth in BSD. A bid once opened in accordance with the prescribed procedure shall be subject to only those rules, regulations and policies that are in force at the time of issuance of NIT/IFB.

17. Evaluation Parameters Company Profile Certified relevant Experience/Past Performance Managerial capability Work Plan & Proposed Methodology Financial Soundness Any other indicator as per functional requirement of PE

18. Methods of Advertisement Rule 11,19 Publication & Adv. >100,000 to ≤ 2.5 (M) KPPRA Website & PE > 2.5 (M) KPPRA Website + 2 widely circulated dailies Rule 10,18 Alternate Methods ≤ 50,000 - Petty Purchases – No RFQ >50,000 to ≤ 100,000 - Three Quotations Min. (RFQ) None Direct Contracting, Repeat Order, Variation Order

19. Methods Of Public Procurement 1. Open Competitive Bidding Single Stage Single Envelope (1-1) Single Stage Two Envelope (1-2) Two Stage Single Envelope (2-1) Two Stage Two Envelope (2-2) 2. Restricted bidding 3. Alternate / Direct method of procurement

20. Opening of the Bids At the time of bid opening , PE shall announce: No of bids received , the bid prices , the requisite bid security etc. No bid shall be rejected at bid opening, except for late bids , which shall be returned unopened to the Bidder. Attendance of both the parties shall be maintained PE shall prepare minutes of the meeting and shall duly sign the same by all members

21. Evaluation of Bids The PE after preliminary examination, will analyze the bids by taking following factors into consideration: Qualification/Eligibility parameters Compliance to the specifications Evaluation on the basis of criteria Availability of spare parts & after sale services

22. Announcement of Bid Evaluation Report (BER ) The PE shall announce the results of bid evaluation in the form of a report (BER) giving justification for acceptance or rejection of bids A t least (10) ten days prior to the award of a contract & P lace the same on its official website as well as on KPPRA’s website .

23. Grievance Redressal Mechanism (S.35) Any bidder aggrieved by any act of the PE may follow the two tier grievance redressal mechanism in the following manner : F ile a complaint in writing to the head of PE ; & F ile an appeal to the Authority against the decision of the PE within (15) days.

24. Conditions for award of Contract (S.31 & R.46) C ontract shall be awarded on the basis of the best evaluated bid; The best-evaluated bid shall be determined on the basis of total conformity to the evaluation criteria, which may include quality or cost or both ; The procedure to determine the best evaluated bid under different methods of procurement All contracts shall be confirmed through a written agreement signed by the successful bidder and the PE

25. Award of Contract (S.31 & R.46) The approving authority in accordance with the delegation of financial powers rules 2018 shall approve successful bid. PE shall provide the contract form or agreement, which contains GCC & SCC. The contract shall also include the description of works/services, specifications, TORs, BOQs, activity schedule and/or any other similar document, currency , total cost of the contract and payment schedule etc.

26. Doing away with Tendering (G oods & Works) S: NO & Item GOODS WORKS Petty Purchase 2. RFQs 3. Direct C ontracting Rs.50,000/- on invoice from single source Rs: 50,000/- to Rs. 100,000/- Three Quotations repeat orders within a period of six months provided that it does not exceed 15 % of the original contract value; procurement through Government organizations the acquisition of spare parts or supplementary services from original manufacturer/ supplier. Rs.50,000/- on invoice from single source Rs: 50,000/- to Rs. 100,000/- Three Quotations where civil works are to be contracted and are a natural extension of an earlier or ongoing subject to limitation of repeat/variation order; procurement through Government organizations

27. S: NO & Item GOODS WORKS price of goods is fixed by the government motor vehicles or machinery is purchased from local original manufacturers or their authorized agents at manufacturer’s price including transportation charges In case of emergency as defined in these rules: Rule (3),(2),(a) where a change of contractor /supplier would result in incompatibility or disproportionate technical difficulties in operation and maintenance. Provided that the contract or contracts do not exceed three years in duration;  In case of emergency as defined in these rules (e) subject to the conditions of contract, a PE may, insure a VO to a contractor to include works which were outside the original scope of works to ensure provided that: the original contract is still in force; ii. the PE has satisfied itself for

28. S: NO & Item GOODS WORKS 4. Negotiated Tendering Engage in negotiated tendering with one or more suppliers or contractors without prior publication of a procurement advertisement in following cases: technical reasons that the placing of the VO is cost effective; iii. the value of VO is not more than 15%of the original contract; and (iv) there may be more than one VO as long as the total value of all the variation orders remains within 15% of the original contract; .

29. S: NO & Item GOODS WORKS specific piece of research or an experiment, a study or a particular development; for technical or artistic reasons, or protection of exclusive rights or intellectual property, manufactured or delivered only by a particular supplier extreme urgency brought about by events; the time limits laid down for open and limited bidding methods cannot be met. Provided that any procuring entity desirous of using negotiated tendering as a method of procurement shall record its reasons and justifications in writing for resorting to negotiated tendering and shall place the same on record.

30. S: NO & Item Consulting Services Rule 23 (d) Sub-rule ( i ) – (v) Subject to prior approval of head of PE Exclusive rights as no alternative source is available. Compatibility & reasonableness of price In case of Emergency Small assignments valuing up to Rs 500,000/PKR Exceptional worth clause

31. Selection Process Preparation & Approval of EOI Notice from Competent Authority by PE Publication/ Hoisting Shortlisting as per criteria Signing Contract Agreement Issuance of Bidding/EOI Documents Publication of Contract Award Issuance of Letter of Acceptance Issue RFP to Shortlisted Consultants Opening, Evaluation of Bids & Preparing BER Hoisting of Bid Evaluation Report (BER) Procurement Process Flow Chart 31 Submission of Performance Guarantee

32. The PE shall : maintain detailed records of all procurement proceedings in the manner as prescribed; and preserve, maintain and safeguard all relevant documents issued and received as shall be set out in the rules . The records shall be open to internal & external audit or to procurement post- review Record Keeping ( S-20 & R -52)