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Q1:What
is the minimum response time for procurement advertisements?
Answer:In terms of Rule
13 of the Public Procurement Rules 2004 the minimum response time shall not
be less than fifteen (15) days for national competitive bidding and thirty
(30) days for international competitive bedding. The Procuring Agencies can
increase the response time depending upon nature of procurement.
Q2:
How
can procuring agency calculate response time?
Answer:The response time
shall be calculated from the date of first publication of the advertisement
in newspaper or posting on the PPRA’s website. In case if the
advertisement is mandatory to advertise in both print and PPRA website in
terms of Rule 12 of Public Procurement Rules, 2004 the response time shall
be calculated from the day of first publication in the newspaper.
Q3:
Can
procuring agency fix amount for bid security?
Answer:
The
procuring agency may require the bidders to furnish a fixed amount of
bid security not exceeding five percent of the
estimated value of procurement
determined by the procuring agency.
Provided that in case where the procuring agency does not require the bid
security, the bidder shall submit bid securing declaration on the format
prescribed by the Authority in Standard Procurement Documents.
Q4:Can
procuring agency reject bids without assigning any reason?
Answer:
In
terms of Rule 33(1) of the Public Procurement Rules 2004 the procuring
agency may reject all bids or proposals at any time prior to the acceptance
of a bid or proposal. The procuring agency shall immediately give notice of
rejection of bid(s) to all bidders. On request by the bidders, the Procuring
Agency shall intimate the reasons of rejection of bids but will incur no
liability on this account nor is required to justify the rejection of bids.
Q5:What
course of action will be adopted by the procuring agency when all the bids
prices substantially exceed the cost estimated/market value?
Answer:The
procuring agency is allowed to cancel all the bids prior to acceptance as
provided under Rule-33 of the Public Procurement Rules, 2004 and
invoke Rule 34 of the said Rules for re-bidding.
Q6:Whether
the procuring agency can enter into negotiations with the bidders for the
reduction in the prices or to call for new bids?
Answer: Negotiations
with the bidder having submitted the lowest evaluated bid or with any other
bidder are not allowed as provided under Rule 40 of Public
Procurement Rules, 2004.
Q7: Whether
negotiation if allowed to be made with all the bidders or only with the
lowest evaluated bidders?
Answer:Negotiations
with the bidder having submitted the lowest evaluated bid or with any other
bidder are not allowed as provided under Rule 40 of Public
Procurement Rules, 2004.
Q8: Many
procuring agencies are signing Memorandum Of Understanding (MOU) with the
Transparency International Pakistan empowering the latter to scrutinize
contracts to be signed by them. Is this practice not an overlap of PPRA
mandate by a Civil Society Organization and is it in line with PPRA
Ordinance 2002 and PP rules 2004?
Answer:Only
PPRA has been mandated by its Ordinanace-2002 to monitor and regulate the
application of law and rules relating to public procurement of all goods,
services and works. PPRA does not indulge in line clearance functions nor
this function is covered by law or has been outsourced by PPRA to any Civil
Society Organization in /outside the country. Public sector organizations
entering into MOU entailing line clearance function do so at their own risk
and cost.
Q9:How to Upload Tender Documents at
PPRA's Web site?
1. By Online:User ID and
Password Can be provided on request at email address info@ppra.org.pk
for online tender submission.
2. By Post:Soft copies of Tender documents can be
sent by Post/Courier to "IT section Public Procurement
Regulatory Authority, 1st Floor FBC Building G5/2 Islamabad"
3. By E-mail:You can send your tender documents as
attachment with file extension "DOC" (MS Word File, "JPG"
(Image File), "PDF" (Acrobat Reader File) at email address info@ppra.org.pk
Q10:It is not clear whether all annual
requirements if known would have to be advertised in advance on PPRA's
website or just the main items.
Answer: Indicative requirements of annual procurement should be
advertised under Rule 9, at macro level, on PPRA's website as well as on the
website of the organization concerned for advance information of prospective
bidders. Detailed advertisement for processing the procurements should
subsequently be made, as required from time to time, in accordance with Rule
12.
Q11:If a tender for procurement of goods over
five hundred thousand
rupees and up to the limit of three million rupees is launched on Authority's
website, would there be any compulsion on the procuring agency to advertise
it in the print media also.
Answer:If a tender for procurement of goods services and works
costing over rupees five hundred thousand and up to the limit of three million rupees has been launched
on Authority's website, it is not mandatory to put the advertisement on
print media.
Q12:
-
If only one tender/bid is received in response to a
tender notice advertised in both or one of the media (Authority's
website/ print media), should the single tender be accepted or
re-advertised the tender.
-
If no tender/ bid is received against a requirement,
what method of procurement is recommended to be adopted
(Re-advertisement or Direct Contracting)
Answer:
i. Rule-38B.
Single responsive bid in
goods, works and services.-
(1)
The procuring agency shall consider single bid in goods, works
and services if it-
(a)
meets
the evaluation criteria, ensures compliance of specifications and other
terms & conditions expressed in advertisement or bid
solicitation documents;
(b)
is not
in conflict with any provision of the Ordinance;
(c)
conforms
to the technical specifications;
(d)
has
financial conformance in terms of rate reasonability:
Provided
that except unsolicited proposal, in case of pre-qualification proceedings
single bid shall not be entertained.
(2)
The procuring agency shall make a decision with due diligence and in
compliance with general principles of procurement like economy, efficiency
and value for money.
ii Re-advertisement would be a preferred option. Direct contracting
could also be used provided it meets the prescribed condition for direct
contracting.
Q13:Under the Rule if preference was
allowed to a domestic or national supplier/contractor, magnitude of price
preference to be accorded should be mentioned. However, a clarification
whether the magnitude of price preference should be in figure or the
percentage, needs to be obtained.
Answer:Preference to domestic or national suppliers or contractors
should be in accordance with policies of the Federal Government. The
magnitude of preference, presently in vogue-but for goods of domestic value
addition, has been specified in Ministry
of commerce S.R.O 827(1)2001 dated 3rd December, 2001 as amended on
28.09.2002. This S.R.O can be downloaded from PPRA's website.
Q14: a)
It has been observed
that financial limits for procurement under sub rules (a) & (b) are
not sufficient. These limits need to be reviewed.
Answer: The sub rule (a) of Rule 42 includes provision which reads
as "Provided further that procuring agencies convinced of the
inadequacy of the financial limit prescribed for petty purchases in
undertaking their respective operations may approach the Federal Government
for enhancement of the same with full and proper justifications".
Likewise sub rule (b) of Rule 42 includes provision which reads as
"Provided that procuring agencies convinced of the inadequacy of the
financial limit prescribed for request for quotations in undertaking
their respective operations may approach the Federal Government for
enhancement of the same with full and proper justifications."
Accordingly the procuring agencies may send a proposal for consideration of
PPRA Board.
b) Moreover, under sub
rule c(iv) a procuring agency may engage in direct contracting for repeat
orders not exceeding fifteen percent of original procurement. It is not
clear how this rule could be applied in case of procurement of spare
parts/equipment.
Answer:
Procurement of spare parts has been dealt with separately
under Rule 42(c)(i) which reads as "A" procuring agency shall only
engage in direct contracting if the following conditions exist, namely:-
The procurement concerns the acquisition of spare parts or
supplementary service from original manufacturer or supplier:Provided that the same are not available from alternative
sources;
In case of procurement of spare parts/equipment through open
competitive bidding when spare parts of required specifications are
available from multiple sources, repeat orders not exceeding fifteen percent
of the original procurement of the spare parts/equipment may be placed under
rule 42(c)(iv)
Q15: Which
type of record is to be maintained for audit.
Answer:Following documents may be kept for maintenance record of procurement by the
procuring agencies for requirements of audit.
- Detail with regard to the originating of demand. It
explains the nature and quantity of the items to be produced. It should
be supported by justification report.
- Purchase requisition may be maintained. It shows
specification as well as quantity of the items to be produced. It also
contains the name/ names of the consignee, to whom the material is to be
delivered.
Tender documents/ file
- It includes consolidation of tender documents,
preparation of tabulation statements, analysis of sales, comparative
statement, evaluation of tender, documents by the technical committee,
approval of the competent authority.
- Purchase order file be maintained. It includes the
documentary detail of the quantity ordered, rate accepted and delivery
period, inspection of material, chemical analysis, acceptance of
material on basis of suitability report from the consignee and finally,
delivery of material to the ultimate consignee.
- Material receipt note be maintained, it shows
description and quantity of material accepted. It is an authority for
payment.
- Contractor bills:-These show detail of material
supplied and must always be accompanied by original copy of material,
Receipt Note and original sales Tax Invoice.
- Budget file containing appropriation for the
purchases.
- File relating to sanction/ approval of competent
authority to make the purchase and make payments and related documents,
necessary for audit including need assessment, actual quantities demand,
difference if any, from items purchased and those required along with
justifications.
- Record of goods, services and works to be planned/
procured in a year before publishing advertisements.
- Record of spare parts/ equipments or services procured
from the original manufacturer or record of goods, services and works
actually procured in a particular year.
- Copies of tenders/ quotations invited to make the
purchases along with specifications.
- In case of limited tenders, sealed quotation,
comparatives statements and invitation record.
- Record showing the particulars of bidders who
purchased tender documents, deposited bids and participated in the
tendering process.
- Record of bidders who deposited bid security to the
procuring agency.
- Pre-qualification record of suppliers/ contractors.
- Technical & Financial bid evaluation reports of
each type of procurement.
- Newspapers in which advertisements published against
each procurement.
- Record of cash deposit receipt, received from the
bidders.
- Stock Register containing the entries of purchase and
specification of items purchased.
- Register showing details of items procured services
made as well as work done.
- The record pertaining to requisitions made by the
department as well as approval of the competent authority for said
procurements.
- Record of black-listed suppliers/ contractors.
- Purchase committee should also keep a record of
evaluation of input cost of consumable stores on the basis of project
usage in addition to the cost of the equipment while evaluating the
bids.
- Delivery of challans of suppliers/ contractors.
- Instructions to bidders.
- Proceedings of committees.
- Final approval of competent authority for procurement
from a particular bidder at specific rate.
- Acceptance letter to successful bidders.
- Bank guarantees.
- In case of imported goods, import invoices,
inventories, indents, letter of credit and shipping documents.
- Issue indents/ acknowledgements.
- Pre-qualification record of suppliers and contractors.
- Inspection rates/ laboratory tests and analysis
reports of samples provided by suppliers.
- Tender opening committee should record their
proceedings and if feel necessary negotiation be carried out with the
different suppliers/ contractors.
- Delegation of financial powers.
- Codal requirements.
- Contractor profile.
- Firms registered with sales tax department.
- Test reports.
- All
latest instruction/ direction/ discretion/ rules/ regulations for
procurement.
Q16:
Whether procuring agencies
can prescribe a condition that the bidders involved in litigation over
procurement matters with them or other Government departments are not
allowed to participate in their procurement proceedings?
Answer:
Article 4 of the Constitution, 1973 of the Islamic Republic of
Pakistan provides the right to an individual to be dealt with in accordance
with law etc. Article 8 of the Constitution, 1973 envisages that the law
inconsistent with or derogation of fundamental rights to be avoided. Article
199 (2) of the Constitution emphasises upon that subject to the
constitution, the right to move a high court for the enforcement of any of
the fundamental right conferred by Chapter 1 part II shall not be abridged.
In terms
of rule 48(5) of Public Procurement Rules, 2004 any bidder not satisfied
with the decision of the redressal grievances committee of the procuring
agency can lodge an appeal in the relevant court of jurisdiction.
After coming into force of the procurement contract,
disputes between the parties to the contract shall be settled through
arbitration as per rule 49 (1) of Public Procurement Rules, 2004. Moreover,
rule 49 (2) of the Rules provides that procuring agency shall provide the
method of arbitration in the procurement contract not inconsistent with the
law of the Government. As such, a condition to restrict the bidders who
have/had filed writ petition(s) in the courts would not be appropriate.
However, a procuring agency may ask for the information relating to
the court cases of the bidders and may assess its impact, if any, on the
proposed procurement, keeping in view the principles of fairness,
transparency and equality.
Q17:
Can any member of general
public be allowed besides the bidders or their representatives to attend the
opening of bids under rule 28 of Public Procurement Rules, 2004?
Answer:
Rule 28 of Public
Procurement Rules, 2004 states that all bids shall be opened publicly in the
presence of the bidders or their representatives who may choose to be
present, at the time and place announced prior to the bidding. As the
general public is defined as bidders or their representatives, the procuring
agency can restrict the attendance accordingly.
Q18:
Whether public sector
enterprises are exempted from submission of bid security or performance
guarantee in open bidding of procuring agencies or otherwise?
Answer:
Rule 25 of the Public
Procurement Rules, 2004 provides that
the procuring agency may require the bidders to furnish a fixed
amount of bid
security not exceeding five percent (5%) of the estimated
value of procurement determined by the procuring agency. The rule
is applicable irrespective of the fact whether bidder is from public sector
or private sector. However, method of submission of bid security is not
given in rule 25, which needs to be elaborated in the bidding documents. It
is upto the procuring agency to decide method of submission of bid security
in an appropriate manner acceptable to the procuring agency. The form(s) in
which bid security is required / acceptable should be clearly mentioned in
the bidding documents.
Q19:
What is meant
by local original manufacturer of motor vehicles?
Answer:
In terms of Rule 42(c)(vii) of Public Procurement Rules, 2004 a procuring agency shall
engage in direct contracting only if purchase of motor vehicle is made from
local original manufacturers or their authorized agents at manufacturer’s
price. The matter of
definition of local original manufacturer has been discussed with the
Ministry of Industries and Production. It has been clarified by the Ministry
that those cars whose Complete Knock Down (CKD) kits have been imported and
assembled in Pakistan and are also utilizing local content (in-house or
vendorized) irrespective of level of localization and also pay all value
added local taxes and availing concessionary SROs should be considered as
locally manufactured cars. (In all such processes assembling is the final
process of production.) However, those cars which have been imported in a
Completely Built Unit (CBU) condition cannot be considered as locally
manufactured cars.
Q20:
Whether PPRA has the powers to settle the audit paras made on mis-procurements
/ violations of Public Procurement Rules, 2004 and regulations in accordance
with PPRA Ordinance, 2002 or otherwise?
Answer:
PPRA has not been delegated any powers to regularize the mis-procurement or
settle the audit paras of any procuring agency under PPRA Ordinance, 2002 or
in terms of Public Procurement Rules, 2004 and relevant regulations made
thereunder.
Q21:
Whether the procuring agencies can procure goods / commodities / works /
services etc. on the rates fixed by the procuring agency itself?
Answer:
Rule 42 (c) (vi) of Public Procurement Rules, 2004 clarifies that a
procuring agency shall engage in direct contracting when the prices of
goods, services or works are fixed by the Government or any other authority,
agency or body duly authorized by the Government on its behalf. This
provision will be applicable on those prices on which that item is available
on uniform rates in the market and holding of competition for such
procurements may not bring any value for money to the procuring agency.
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