public procurement rules and regulations usaid 17-12-2011 compatibility mode

8/12/2019 Public Procurement Rules and Regulations USAID 17-12-2011 Compatibility Mode

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Public Procurement Reforms andu uBY

DirectorPublic Procurement Regulatory Authority

Islamabad


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Format of Presentation

Ills of the Old system

Previous Procurement Practices

Old Regulatory Regime The GOPs Initiative in Procurement Reforms

Objectives, status, applicability of PP Rules &

Regulations

Salient Features of Public ProcurementFramework

Monitoring and evaluation

Capacity Building

Way Forward


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Ills of Old Systemttr uta e to egu at ons roce ures

Multiple Procurement Regulations mostly

ou a e

Non Transparent Procurement procedures

war genu ne us ness

Complicated procedures discourage sound,

Restrictive bidding on contracts

ow overa e c ency In-efficient and corrupt contractors and buyers


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Ills of Old S stemAttributable to Human Resource Poorly paid and ill trained Procurement staff

Overall inefficiency, poor management Inadequate record keeping

In ordinate delays in decision making

Misuse of re ualification criteria

Registration makes collusion extremely easy

professionals


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Ills of old S stem Bid negotiation often leads to kick back

Bid negotiations discourage bidders to

quote t e r est pr ces

In efficient dispute resolution mechanism No law providing effective protection

a ainst collusion & corru tion

Most of the Govt. projects had Cost


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Procurements under General Financial Rules Procurements by Corporate Sector

Procurements by Statutory Bodies

e ense rocuremen s nc ass e


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Old Regulatory Regime

No Procurement Law

Multiplicity of Procurement Regulatory regimes

General Financial Rules Procedures of the Public Sector Enterprises

Procurement Regulations of International

lending Agencies No regu ations or procurement o ervices

Works

Arbitration Act 1940


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Reform Initiatives Establishment of Public Procurement

Regulatory Authority by PPRA Ordinance 2002

Promulgation of PP Rules 2004 ProcurementLaw

Monitoring and Implementation of PP Rules-

2004 Re engineering of Procurement Manuals /

Procedures of Public Sector Entities

s a s men o e or a(www.ppra.org.pk)


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Status, Objectives & Applicability of Reforms

Procurement Reforms enacted by Law

Public Procurement Regulatory AuthorityOrdinance 2002

Public Procurement Rules 2004

Rules A licable to: Federal Government Agencies

Authorities Cor orations established b or

owned or controlled by the Fed Govt


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Ob ectives of Procurement Reforms Economy (Value for money).

Efficiency..

Accountability.

a r ompe on.

Good Governance.


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Salient Features of Public Procurement Framework Procurement Planning Rule-08 -

Qualification/Disqualification Rule-17-18

Methods of Procurements Rule-36

O enin Evaluation Rule-28 30 &33& Rejection of Bids

Acce tance & Award of Rule-38Contracts

Grievance Redressal Rule-48

Detail


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Monitorin & Evaluation PPRAmonitorsall public procurement tenders in, published

, .

Deviations to PP Rules are regularly pointed out to therespective procuring agencies for taking correctivemeasures

Violations committed by procuring agencies have. . - .

The tenders uploaded in 2004-05 were 11,905 and it hasrownto25479 in2010-11withan increaseof 46 .


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Monitoring & EvaluationMonitoring & Evaluation


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Capacity Building

Capacity Building Centre of PPRA became an institution on

27th July, 2009 after completion of PSCBP in the form of

National Instituteof Procurement (NIP),

than 4000public procurement officials representing more than

200 procuring agencies of Federal Government alongwithprivate sector and NG sector have availed training facilit to

createawareness about therules andensurecompliance.


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Capacity BuildingGFR

E-procurementProcurement Law

Future

ra n ng rograms on

PP-Rules 2004


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Way Forward

Enact a modern transparent Public Procurement

Law

Strengthening monitoring & Evaluation

Consequences of Mis-procurement

,

requirements, etc.

Create own Procurement Standard Bidding

ocumen s s

Constitute a grievance redressal authority


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an ou


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Public Procurement Rules, 2004 Rule-03: Scope and appl icability

The rules are applicable to all the procuring agencies of the Federal

Government.

Rule-04: Principles of procurementsFairness transarenc and value for mone in ublic rocurements.

Rule-05: International & inter-government commitments of the FederalGovt.

with PP Rules, 2004.

Rule-06: Language, ,

Federal Govt. and may use a local language in addition to English and Urdu if

situated outside Pakistan.

-

Integrity pact to signed by PA and contractor in procurements contracts

exceeding Rs.10 million.


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Rule-13: Response timeNational Competitive Bidding --not less than 15 days

-- . Rule-14: Exceptions

Two exceptions to advertisement: Procurements of national security and

Rule-15: Pre-qualification of suppliers and contractorsPA may engage, prior to floating of tenders, in pre-qualification of bidders in case

, , .

Rule-16: Pre-qualification processPA to provide pre-qualification documents for a price and other pre-qualificationinstructions for bidders and su liers.

Rule-17: Qualification of suppliers and contractorsPA to demand information from the suppliers, whether already pre-qualified ornot, based on the rofessional, technical, financial, le al or mana erial

competence to determine their credibility. Rule-18: Disqualification of suppliers and contractors

PA may disqualify a supplier or contractor if he submits false and incompleteinformation regarding his qualification.


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Rule-19: Blacklisting of suppliers and contractorsPAs to devise a mechanismto permanently or temporarily bar a supplier or contractor

baringactiontobecommunicated to theAuthority.

Rule-20: Principal method of procurementPA t us o en com etitiv biddin a th rinci al method of rocurement for

procurement of goods, servicesandworks.

Rule-21: Open competitive biddingPAs shall engage inopencompetitive bidding if thecost of object tobe procured is more

than theprescribed financial limit of Rs. One

Rule-22: Submission of bids

Bids tosubmitted insealedpackage inamanner that thecontentsare fullyenclosedandcannot beknownuntil dul opened.

Rule-23: Bidding documentsPAs to formulate precise and unambiguous bidding documents to be made available to

e ers a er pu ca on o nv a on o . Rule-24: Reservations and preferencePAs to allowprospective bidders to participate in procuring procedures without regard to

biddersor prohibitssomenationalities inaccordancewith thepolicy of Federal Govt.


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Rule-25: Bid securityThe PA may require the bidder to furnish the bid security not exceeding 5% of the

. Rule-26: Bid validity

Bid validity period must be specified. Bids shall be valid for the time periodspecified in the bidding documents. P.A shall process the bid within the bidva ypero .

Rule-27: Extension of time for submission of bidsPA can extend the deadline for the submission of bid if it finds the extension

.

Rule-28: Opening of bidsThe date of opening and the last for the submission of the bid shall be the same.

The bids shall be opened at least thirty minutes after the deadline for thesu mssono s.

Rule-29: Evaluation criteriaPA to formulate an appropriate unambiguous evaluation criterion listing all the

Rule-30: Evaluation of bidsAll bids to be evaluated in accordance with the evaluation criterion and othertermsprescribed inbiddingdocumentsandsaveasprovidedfor insub-clause(iv)o cause c o u n evaua on cr eron s a use o evauae ahasnot beenspecified in biddingdocuments.


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Rule-31: Clarification of bidsBidder shall not alter or modify the bidafter the bids have been opened. PAmay

seekclarification inwriting tothebid that donot change thesubstanceof thebid.

Rule-32: Discriminatory and diff icult condi tionsPA not to imose an condition difficult to meet and which discriminates

betweenthebidders,

Rule-33: Rejection of bids

proposal. PA to give notice of rejection of all bids promptly to suppliers and

bidders, communicate reasons for rejection upon request by the bidder but need

not justify themand incur no liability towards suppliersor contractors.

Rule-34: Re-biddingPA may call for re-bidding if it has rejected all bids under Rule 33. PA to assess

conditionas it maydeemnecessary.

Rule-35: Announcement of evaluation

justification for acceptance or rejection at least ten days prior to the award of

procurement contract.


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Rule-36: Procedures of open competitive biddinga) Single stage One envelope procedure (bid containing one single envelope

withseparate FINANCIALPROPOSALandTECHNICALPROPOSAL).

b) Single stage Two envelope procedure (bid containing single package

having two separate envelopes marked as FINANCIAL PROPOSAL and

TECHNICAL PROPOSAL. TECHNICAL PROPOSAL shall be opened first

andFINANCIALPROPOSAL later.

c) TWO STAGE BIDDING PROCEDURE

(First stage) Bidder to submit TECHNICAL PROPOSAL alongwith the

specification without mentioning the price. PA to allow sufficient time i.e. not

less than 15days incase of national competitive bidding and30 days incaseo international competitivebidding.

(Second stage)Technically sound bidders who are willing to conform their

bids to the revised technical requirement of the PA shall be asked to submit

Financial bidand tobeevaluatedaccordingly.


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d) Two stage two envelope bidding procedure

(First stage)Bid containing single package havingFINANCIAL PROPOSAL

and TECHNICAL PROPOSAL. The later shall be opened first. PAto discuss

the TECHNICAL PROPOSAL with the bidder according to PAs technical

requirements.

(Second stage) PA after discussion with the bidders on the technicalspecifications shall allow the bidders to submit a revised technical proposal

and supplementary financial proposal, according to the technical

requirement whichshall beopenedat agivendate, timeandvenue.


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Rule-37: Conditions for different bidding proceduresSingle stage two envelope(bids are to be evaluated on technical and financial

.Two stage bidding procedure(adapted in large and complex contracts wheretechnically unequal proposals are likely to be encountered and two or more

.

Two stage two envelope bidding procedure (used where alternativetechnically proposals are possible e.g. machinery, equipment or manufacturingplant.

Rule-38: Acceptance of bidsThe bidder with the lowest evaluated bid, if not in conflict with any other law,

rules, regulations or policy of the Federal Government, shall be awarded theprocurement contract, wt n t eorgna or exten e pero o va ty.

Rule-39: Performance guaranteeIf deemed necessary, PA shall require the successful bidder to furnish aper ormanceguaraneeno excee ng enpercen o econrac .

Rule-40: Limitation of negotiationsThereshall benonegotiationwiththe lowest evaluatedor anyother bidder


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Rule-41: Confidentialityto eep a t e normaton regar ng evauaton con enta unt t e

announcement of evaluationreport asper Rule 35.

Rule-42: Alternative methods of procurements

limit of twenty five thousand rupees provided that such petty purchase conforms

toprinciplesof procurementsunder Rule4.b) Request for quotation:PA shall engage in this method of procurement

, . , ,belowRs. 500,000 for Autonomous bodieswith authorizationof their boards

c) Direct contracting: PA can directly procure in this method: If procuring

from single source / supplier; only one manufacturer or supplier. Repeat ordersno excee ng o e orgna procuremen, emergency ecare y anappropriate fora, the Prices are fixed by the Government, ThePurchase of MotorVehicle fromLocal original manufacturesor their authorizedagents

d Ne otiated tenderin :Can be en a ed with one or more su liers with

or without prior publication of procurement notification, i procurement pertains tosupplies supporting study or research or for technical or artistic reason,intellectual property rights etc or in case of extreme urgency. Reasons to berecorded inwritin

Rule-43: On account payment

PA to make prompt payment to suppliers within the time mentioned in thecontract whichshall not exceed30days.


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Rule-44: Entry into force of the procurement contract

partiesor fromthedateof fulfillment of certainconditions.

b) No formal signing of contract: From the date of the notice of theacce tanceo thebid fromthedateo the urchaseorder

Rule-45: Closing of contractOnissuanceof overall deliverycertificateor takingover certificate required tobeissued within 30 days of final taking over of goods/receiving the deliverables orcompletiono work.

Rule-46: Record of procurement proceedings

PAshall maintain therecordfor aminimumperiodof 05years. Rule-47: Public access and transparency

A document relating to evaluation and award of contract to be made public. PAto withhold any information which is against the public interest or proprietary

emssu ec opror approva o e u or y.


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Rule-48: Redressal of grievances by the PAPA to constitute committee containing odd number persons with powers and

authorization toaddress complaintsof thebidders. Writtencomplaint within 15days

after the announcement of the bid evaluation report. Decision by the Committee

within 15 days of the receipt of the complaint. Appeal can be filed in the relevant

cour o urs c on.

Rule-49: Arbi trationArbitration can only be resorted to after coming into force of the procurement

contract. PAtoprovidemethodsof arbitration in thecontract.

Rule-50: Mis-procurement

Any authorizedbreacho theserulesshall amount tomis-procurement.

Rule-51: Overriding effectShall have effect notwithstanding anything to the contrary contained in any other

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