cpd presentation 2010

8/8/2019 CPD Presentation 2010

1/33


2/33

CENTRAL PROCUREMENT DEPARTMENT

SOP

1. ORGANIZATION

2. MISSION

3. TASKS

4. DEFINITIONS

5. TYPES OF STORES6. DEMANDS

7. METHOD OF PROCUREMENT

8. FINANCIAL LIMITS

9. PROCESSING & PAYMENT OF BILLS

10. ENLISTMENT11. HIGH VALUE CONTRACTS

12. PREQUALIFICATION, QUALIFICATION, DISQUALIFICATION &

BLACKLISTING OF CONTRACTORS

13. DISPOSAL


3/33

DHA ISLAMABAD


ORGANIZATION

ED (Adm & Pers)

Dir Adm

GM Procurement

Naib Qasid -1

Superintendent -1

Office Assistant -1

Procurement Officer


4/33


STANDING OPERATING PROCEDURE

MISSION & TASKS Mission. CPD will arrange procurement of stores/materials and disposal of

all unserviceable stores including vehicles and machinery etc.

Tasksa. To ensure that all procurement demands from all Branches/Dtes are

finalized and procured promptly in accordance with the guidelinessetout in this SOP.

b. To ensure maximum economy in procurement of stores/materials bybulking demands of common user items of all Branches/Dtes andarranging their central procurement.

c. To ensure effective market survey to gain upto date information about

latest prices, market trends and to locate appropriate manufacturers /dealers/sources of supply.

d. To arrange disposal of all surplus/obsolete/unserviceable storeswhen directed by Administrator DHAI.

e. To register vendors of various types and categories and maintain their

record to facilitate prompt as well as economical procurements.


5/33

a. Procurement means the acquisition by any means of goods, construction or

services.

b. Procuring entity means any governmental department, agency or any other

unit that engages in procurement.

c. Goods means objects of every kind and description including raw materials,

products and equipment and objects in solid, liquid and gaseous forms and

electricity, as well as services incidental to the supply of the goods if the value

of those incidental services does not exceed that of the goods themselves.

d. Construction Means all work associated with the construction,

reconstruction, demolition, repair or renovation of a building, structure or

works, such as site preparation, excavation, erection, building, installation of

equipment or materials, decoration and finishing as well as services incidental

to construction such as drilling, mapping, satellite photography, seismic

investigations and similar services provided pursuant to the procurement

contract, if the value of those services does not exceed that of the construction

itself.

DEFINITIONS


6/33

e. Services means any object of procurement other than goods or

construction.

f. Supplier or Contractor means, according to the contract, any potential

party or the party to a procurement contract with the procuring entity.

g. Procurement Contract means a contract between the procuring entity and

a supplier or contractor resulting from procurement proceedings.

h. Tender Security means a security provided to the procuring entity to

secure the fulfillment of any obligation by the supplier or contractor

participating in the tender process, and a Tender Security includes such

arrangements as bank guarantees, surety bonds, letters of credit and pay

orders etc.


7/33

TYPES OF STORES

CENTRALLY PROCURED STORES

1. All IT related equipment including networking and software.

2. All telecommunication equipment/stores.

3. All items of stationery including computers items.

4. All printing materials.

5. All kinds of furniture.

6. All electronic stores.

7. All machinery and Engineers stores.

8. All stores required by TP & BC Dte.

9. All Vehicles/Transport.

10. Stores / plants for tree plantation/Nursery.


8/33

LOCAL PURCHASE STORES

These include urgently required stores where either the demand isunpredictable or the stores are of expendable nature. The items which the

concerned Dtes will continue to procure independent of CPDs involvement are

as under:-

(1) Expendable stores for tea bar / cafeteria and other miscellaneous stores

which cannot be procured in bulk periodically.

(2) Spares required for transport and generators.

(3) Items required urgently for repair of any electronics, computers, and

office buildings etc.

(4) Petrol, oil, lubricants and CNG etc for transport / generators.

(5) Repair of any equipment / transport / building (not exceeding

Rs.100,000.00) etc.(6) The items of centrally procured stores when required urgently may

be purchased by Dte / Branches after obtaining approval for local

purchase from Director Adm. However, immediately after each of such

procurement the case will be sent to CPD for scrutiny before the final

payment is released by Fin Dte.


9/33

DEMANDS-CATEGORIES

Regular Demands. These are demands of items, requirement for which canbe calculated in advance based on the past experience of their consumption. The

supply of these items can be conveniently scheduled and where possible the

stores can be bulked together to achieve maximum economy. These demands

must be forwarded by all concerned to CPD as per following schedule:-

(1) Six Monthly Demands. The demand of items like office stationery /stores which are required on six monthly basis must be forwarded to

CPD as under:-

(a) For the period Jan -June - By 1st week of Nov of the preceding year

(b) For the period July Dec - By 1st week of May

(2) Quarterly Demands. The demand for items which are required on

quarterly basis may be forwarded to CPD at least 6 weeks before

commencement of every quarter of the calendar year i.e. by end of

2nd week of Nov, Feb, May and Aug.


10/33

Demands on As Required Basis. These demands pertain to items

required by the Directorates / Branches on as required basis. Replacement

of stores on condemnation will also fall in this category.

Special Demands. These include Transport, Machinery and other

expensive equipment and stores the demands for which may be forwarded

to CPD at any time of the year alongwith certificate of availability of funds.

Emergent Demands. These are the unforeseen demands of urgently

required stores. Such demands will be met under arrangements of the

Directorate concerned in coordination with CPD. The final bills of all such

procurement will be routed through CPD for final payment by Finance Dte.

However, such procurement will only be undertaken when sufficient justification exists for the same. The urgent requirement of hoardings /

billboards etc by Marketing Dte will also fall under this category and will be

processed accordingly.


11/33

METHOD OF PROCUREMENT Method of Procurement.

(1) Procurement will be made through open competition by obtaining quotations or by

inviting tenders.

(2) In certain cases when the stores are urgently required or when the requirement is of

special nature, tenders will be issued to only the qualified suppliers of proven

capabilities.

(3) For procurement of proprietary items, tenders will be called from the concerned

suppliers.

(4) A proper contract will be singed in case the procurement involved is of important

nature/high value.

(5) If required the terms and conditions of the contract will be got scrutinized and vetted

from the concerned department/Dte and if necessary from Finance/Legal Dte.

(6). Keeping the above points in view, the method explained in next few slides will be

adopted for procurement of various types of stores by CPD.


12/33


13/33

e. After opening the tenders and preparation of comparative statement,

completion of negotiations, an evaluation of the tenders received will be made

and submitted with necessary details for approval of competent authority /

Director concerned / ED Tech & CE for issue of the purchase order.f. Where necessary, the samples will be got approved from the concerned

Directorate/Branch.

g. Negotiations will be carried out to get maximum rebate and to improve upon

the terms and conditions of the contract.

h. The procurement will normally be from the lowest acceptable bidder for anysupply of stores/goods/equipment of laid down specifications. However, where

genuine reasons exist and which should be recorded in writing, the

procurement from a higher bidder may be resorted to.

j. Purchase orders will be issued to the suppliers with lowest rates/whose

sample has been approved by the users Department for supply of stores as

per required delivery schedule. In all cases Four copies of the purchase order

will be prepared and distributed as under:-

(1)Office copy

(2)Suppliers copy

(3)Directorate copy Two copies


14/33

k. For a formal contract, three copies of the contract will be sent to the

supplier for signature. In case the supplies are spread over a period, the

terms and conditions will be clearly spelled out. A copy of the contract

duly signed by the supplier will be sent to the Directorate/Branch

concerned for record and for monitoring progress of supplies. Before

signing of the contract, the same will be got scrutinized and vetted from

the concerned Directorate/Branch.


15/33

FINANCIAL LIMITSa. For all procurements by CPD financial limits as described in DHAI Accounts

Policy 2008 will be followed.

b. Financial limits for purchases from open market, procurement by obtaining

quotations and contract awarding / procurement through tendering will be as

under:-

(1) Purchase from open market or on

single quotation - Upto Rs. 50,000.00

(2) Purchases by obtaining quotations - Upto Rs. 5.00 Million

(Minimum 3 quotations)

(3) Contracts / Purchases through tendering - Above Rs 5.00 Million


16/33

PROCESSING & PAYMENT OF

BILLSa. The Concerned Directorate/Branch will forward the Budget Requisitionalongwith bills of the supplies duly verified / stamped and signed

alongwith a copy of CRV or Goods Receiving note and inspection Report

(Para 4e of Accounts Policy) of the stores received to CPD within 2

working days of the receipt of stores.b. CPD after scrutiny will return the same to the Dte concerned for further

processing and onward submission to Fin Dte.

c. Finance Dte will release the payment cheque to the supplier within 3

working days of receipt of bills from the Dte concerned.

d. It will be joint responsibility of the concerned Dte, CPD and Finance Dte

to ensure that the payment cheque is issued to the concerned suppliers

within maximum of12 working days of receipt of stores.


17/33

ENLISTMENT OF FIRMS

All prospective suppliers will be encouraged to get themselves enlisted with

CPD. GST registered firms will be preferred for enlistment as suppliers.


18/33

HIGH VALUE PROJECTCONTRACTS

a. Whereas all high value contracts by Proj Dte, Land Dte, IT&T Dte and

Chief Engineers Branch will be processed and finalised by respective

Dtes/Branches, the GM Procurement will be co-opted as member of the

board of officers processing such contracts.

b. The provisions of Public Procurement Rules 2004 rules 20 to 41 will be

observed for all high value projects / contracts.


19/33

CONTRACT AWARDING

COMMITTEES

a. PRESIDENT: ED TECH & CHIEF ENGINEER /

DIRECTOR CONCERNED

b. MEMBERS: (1) DIR PROJECT

(2) GM PROCUREMENT


20/33

ADVERTISEMENTS FOR HIGH

VALUE CONTRACTSAll High Value Contracts shall be advertised in atleast two national dailies

having wide circulation. However, such an advertisement may be waived in

the business interest of DHAI after a written approval from competent

authority in each case. The reasons for such a waiver will be recorded in

writing. The financial limits to exercise powers to waive advertisement of

high value projects / contracts will be as under:-

a. Value up to 10 Million ED Tech & Chief Engineer / DirAdm / Other Directors

b. Value above 10 Million - upto 50

Million

Administrator

c. Value above 50 Million up to 100

Million

Vice President

d. Value above 100 Million President


21/33

PREQUALIFICATION OF SUPPLIERS

AND CONTRACTORS

a. The CPD, Proj Dte, Land Dte, IT & T Dte and Chief Engineers Branch Prior

to the floating of tenders, invitation to proposals or offers in Procurement

proceedings may engage in prequalification of bidders in case of services,

civil works turnkey projects and in case of procurement of expensive and

technically complex equipment to ensure that only technically and financially

sound parties are invited to submit bids.

b. All concerned while engaged in Prequalification may take into consideration

the following factors:-

(1) Relevant experience and past performance.

(2) Capabilities with respect to personnel, equipment and plant.(3) Financial position.

(4) Appropriate management capability.

(5) Any other relevant factor not inconsistent with common fair practices

and the law of the land.


22/33

PREQUALIFICATION PROCESSThis process will be undertaken in accordance with Rule 16 of Public Procurement

Rules 2004, reproduced as under:-

(1) The procuring agency engaging in pre-qualification shall announce, in the

pre-qualification documents, all information required for pre-qualification

including instructions for preparation and submission of the pre-qualification

documents, evaluation criteria, list of documentary evidence required by

suppliers or contractors to demonstrate their respective qualifications and any

other information that the procuring agency deems necessary for

prequalification.

(2) The procuring agency shall provide a set of pre-qualification documents toany supplier or contractor, on request and subject to payment of price, if any

explanation for the purposes of this sub-rule price means the cost of printing

and providing the documents only.


23/33

(3) The procuring agency shall promptly notify each supplier or contractor

submitting an application to pre-qualify whether or not it has been pre-

qualified and shall make available to any person directly involved in thepre-qualification process, upon request, the names of all suppliers or

contractors who have been pre-qualified. Only suppliers or contractors

who have been pre-qualified shall be entitled to participate further in the

procurement proceedings.

(4) The procuring agency shall communicate to those suppliers or

contractors who have not been pre-qualified the reasons for not pre-

qualifying them.


24/33

QUALIFICATION, DISQUALIFICATION

AND BLACKLISTING

The Provisions of Public Procurement Rules 2004, Rule 17, 18 & 19 will be

observed.


25/33

Qualification of suppliers and contractors.

A procuring agency, at any stage of the procurement proceedings, having

credible reasons for or prima facie evidence of any defect in suppliers or

contractors capacities, may require the suppliers or contractors to provide

information concerning their professional, technical, financial, legal or

managerial competence whether already pre-qualified or not: Provided that

such qualification shall only be laid down after recording reasons therefore in

writing. They shall form part of the records of that procurement proceeding.

Disqualification of suppliers and contractors.

The procuring agency shall disqualify a supplier or contractor if it finds, at any

time, that the information submitted by him concerning his qualification as

supplier or contractor was false and materially inaccurate or incomplete.

Blacklisting of suppliers and contractors.

The procuring agencies shall specify a mechanism and manner to permanentlyor temporarily bar, from participating in their respective procurement

proceedings, suppliers and contractors who either consistently fail to provide

satisfactory performances or are found to be indulging in corrupt or fraudulent

practices. Such barring action shall be duly publicized and communicated to

the Authority: Provided that any supplier or contractor who is to be blacklisted

shall be accorded adequate opportunity of being heard.

PUBLIC PROCUREMENT RULES 17-19


26/33

DISPOSAL

Disposal of obsolete / condemned / spare stores / Vehs / machinery /

equipment etc will be carried out by CPD on direction from Administrator DHAI.


27/33

DISPOSAL - GENERAL RULES

The disposal will be arranged through open/close auction keeping the bestmonetary advantage to DHAI in view. Following general rules will apply:-

a. Declaring an item as surplus/obsolete/unserviceable/scrap will be

responsibility of concerned Dte / Branch.

b. Once an item is declared unserviceable/surplus etc, the Dte/Branch

concerned will obtain approval for its disposal from ED Adm &

Pers/Administrator. The approval proceedings must contain a decision on

the reserve price based on market rates of the items being approved for

disposal.

c. Disposal of vehicles will be through closed bids, whereas other

stores/materials may be disposed off through open auction or closed bidsdepending on the size and value of the stores involved.


28/33

d. Following information will be provided to GM Procurement/CPD for disposal of

vehicles:

(1) Description/Make & Type/Model and country of manufacture of each Veh

(2) Date of purchase(3) Cost price

(4) Mileage run

(5) Book value

(6) Reserve price

e. Following information will be provided to GM Procurement / CPD for disposalof stores other then vehicles:

(1) General description

(2) Unit and quantity

(3) Weight in case of scrap

(4) Date of purchase(5) Cost price

(6) Book value

(7) Reserve price based on current market rate

(8) Any other relevant information


29/33

f. On receipt of above information CPD will advertise, if necessary depending on

value of stores, about the disposal of vehicles/stores in one or two National

Dailies of wide circulation through PRO giving following details:-

(1) Details of vehicles/stores giving their location and period during

which those will be available for inspection by the prospective bidders.

(2) Date and time at which the closed bids are required to reach, date and

time at which the bids are to be opened and venue of opening of

bids must be clearly mentioned.

(3) Date, time and place in case of open auction.

(4) Amount required as earnest money i.e. 10% of the offer to accompany

all bids in shape of a Bank Draft / Pay Order.

(5) In case of open auction 25% of the total bid will be deposited as

earnest money by the successful bidder.

(6) Date and Time by which the final payment must be made after opening

of bids and determination of highest bidder. Earnest money will be

forfeited in case the bidder fails to make the payment in time.

(7) A categorical statement that DHAI has the authority to reject any or all

the bids and accept any bid without assigning any reason.


30/33

g. The Board of Officers detailed to supervise open auction will have the

authority to dispose off stores at price 10% lower than the reserve price

fixed by the authority concerned. However, acceptance of bids by the

board in all cases will be provisional and a final approval of ED Adm &

Pers / Administrator / Vice President DHAI will be required.

h. Arrangements will be made by Finance Dte to collect 25% of the total

offer in cash from the successful bidder on conclusion of the open

auction. A proper cash receipt duly stamped will be handed over to the

bidder.


31/33

DISPOSAL - PROCEDUREFollowing procedure will be adopted for the disposal of vehicles as well as other

stores:-a. Close bids will be opened in the presence of the board of officers appointed by

the Administrator DHAI on the date and time as per advertisement in the

news papers. The bidders may attend the opening of bids. The composition of

the board of officers will be as under:-

(1) GM Procurement - President

(2) Procurement Officer / An Officer From Adm Dte - Member

(3) An Officer from Fin Dte - Member

b. Open auction will be supervised by the board of officers to be detailed by

Administrator DHAI on the final date and time as per advertisement.

The composition of the board will be similar as at sub para 20 a above.

c. Bids received without Bank Draft or Pay Order of10% earnest money will be

rejected and endorsed as such on the bid by the President of the Board of

officers.

d. The amount of offer given in the bid will be announced for the benefit of all

concerned.


32/33

e. Bids and comparative statement will be signed by all members of the Board.

f. On completion of the proceedings the recommendations of the Board will be submitted

to Administrator DHAI for final approval.

g. After getting approval from the Administrator a letter will be issued to the bidder by GM

Procurement informing him of the acceptance of his bid and directing him to deposit the

balance amount with Fin Dte DHAI by a specified date. A copy each of this letter will be

provided to Fin Dte and Adm / concerned Dte.

h. The auctioned stores / vehicles etc will be collected by the successful bidders after

deposit of the amount on the authority of the letter issued by Director Finance duly

counter signed by Secretary DHAI.

j. After the vehicles / materials are sold / handed over to the bidder a sale note will be

prepared by the concerned Dte / Adm Dte in triplicate and a copy each will be sent to

Finance Dte and CPD for record.k. In case disposal involves removal of debris or clearance of area etc, 25% additional

amount as Returnable Security will have to be deposited by the bidder alongwith the

final payment. This security may be forfeited in favour of DHAI if the tenderer fails to

remove the stores / debris /clear the area within given time.


33/33

cpd presentation 2010

Documents