PPRA Rules

  PPRA Rules Not ificat ion

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Islamabad, June 9, 2004
N
O T I F I C A T I O N

  S.R.O. 432(I)/2004.- In exercise of t he powers conferred by sect ion 26 of t he Public

Procurement Regulat ory Aut horit y Ordinance, 2002 (XXII of 2002), t he Federal Government is
pleased t o make t he following rules, namely:-

1.        
Short title and commencement.-

(1)       
These rules may be called t he Public Procurement Rules, 2004.

(2)       
They shall come int o force at once.

GENERAL PROVISIONS

2.        
Definitions.-

(1)       
In t hese rules, unless t here is anyt hing repugnant in t he subject or cont ext ,-

(a)       
"
bid " means a t ender, or an offer, in response t o an invit at ion, by a person, consult ant ,
firm, company or an organizat ion expressing his or it s willingness t o undert ake a specified t ask
at a price;

(b)      
"bidder" means a person who submit s a bid;

 
*****(b*)"blacklist ed" means a bidder t hat is declared by t he Aut horit y unt rust wort hy aft er
est ablishing t he fact t hat t he bidder was found involved in any corrupt and fraudulent pract ice
or pract ices; or if t he bidder is declared incapable by t he Aut horit y due t o it s est ablished
performance failure during t he execut ion of t he cont ract ; or if t he bidder deviat es from it s prior
commit ment or declarat ion made regarding t he bid or proposal submit t ed by t he bidder.

****(ba)   "call off order" means an order placed by a procuring agency under general t erms and
pricing on a range of goods under closed framework agreement , wit hout having t o negot iat e
t erms every t ime;

(bb)     "closed framework agreement " means an agreement wit h specified t erms and condit ions
wit h an agreed price;

(c)       
"compet it ive bidding" means a procedure leading t o t he award of a cont ract whereby all
t he int erest ed persons, firms, companies or organizat ions may bid for t he cont ract and includes
bot h nat ional compet it ive bidding and int ernat ional compet it ive bidding;

 (d)     
"cont ract or" means a person, consult ant , firm, company or an organizat ion who
undert akes t o supply goods, services or works;

(e)       
"cont ract " means an agreement enforceable by law;

*****(f)   
"corrupt and fraudulent pract ices" in respect of procurement process, shall be
eit her one or any combinat ion of t he pract ices including,-

(i)         
"coercive practices" which means any impairing or harming or threatening to impair
or harm, directly or indirectly, any party or the property of the party to influence the
actions of a party to achieve a wrongful gain or to cause a wrongful loss to another
party;

(ii)      
"collusive pract ices" which means any arrangement bet ween t wo or more part ies
t o t he procurement process designed t o st ifle open compet it ion for any wrongful
gain, and t o est ablish prices at art ificial, non-compet it ive levels;
 
(iii)       
"corrupt pract ices" which means t he offering, giving, receiving or solicit ing,
direct ly or indirect ly, of anyt hing of value t o influence t he act s of anot her part y
for wrongful gain;

              
 (iv)       
"fraudulent pract ices" which means any act or omission, including
a    misrepresent at ion, t hat knowingly or recklessly misleads, or at t empt s t o
mislead, a part y t o obt ain a financial or ot her benefit or t o avoid an obligat ion; and
 
(v)       
"obst ruct ive pract ices" which means harming or t hreat ening t o harm, direct ly or
indirect ly, persons t o influence t heir part icipat ion in a procurement process, or
affect t he execut ion of a cont ract ;
 

(fa) "cross debarred" means a bidder debarred by any procuring agency shall be considered as
debarred by all t he procuring agencies.

(g)      
"emergency" means nat ural calamit ies, disast ers, accident s, war and operat ional
emergency which may give rise t o abnormal sit uat ion requiring prompt and immediat e act ion t o
limit or avoid damage t o person, propert y or t he environment ;

****(ga)   "e-Procurement " means use of informat ion and communicat ion t echnologies or digit al
or elect ronic means for procurement process;

**(gaa) "force account " means execut ion of procurement of small works and non-consult ancy
services t hrough direct cont ract ing wit h any st at e owned ent it y having resources t o perform
t hat part icular assignment subject t o ascert aining t hat it is cost and t ime effect ive;

****(gb)     "framework agreement " means a cont ract ual arrangement which allows a procuring
agency t o procure goods, services or works t hat are needed cont inuously or repeat edly at  
agreed t erms and condit ions over an agreed period of t ime, t hrough placement of a number of
orders;

****(h)   "most advant ageous bid" means,-

(i)    
a bid or proposal for goods, works or services t hat aft er meet ing t he eligibilit y  or
qualificat ion crit eria, is found subst ant ially responsive t o t he t erms and condit ions as set out in
t he bidding or request for proposals document ; and

(ii) 
evaluat ed as t he highest ranked bid or proposal on t he basis of cost or qualit y or
qualificat ion or any combinat ion t hereof, as specified in t he bidding document s or request for
proposal document s which shall be in conformit y wit h t he select ion t echniques t o be issued by
t he Aut horit y;

 
(ha)  
"Open framework agreement " means an agreement wit h specified t erms and condit ions
wit hout an agreed price;

(i)       
"Ordinance" means t he Public Procurement Regulat ory Aut horit y Ordinance, 2002 (XXII of
2002);

(j)        
"repeat orders" means procurement of t he same commodit y from t he same source
wit hout compet it ion and includes enhancement of cont ract s;

(k)      
"supplier" means a person, consult ant , firm, company or an organizat ion who undert akes t o
supply goods, services or works;

****(ka)   "unsolicit ed project proposal" means any proposal cont aining a unique and innovat ive
idea and approach, and t he same is not submit t ed in response t o any procurement request ,
however is aligned wit h t he mission and object ives of t he procuring agency and is subject t o
compet it ive select ion process by solicit ing count er proposals challenging t he init iat or’s
proposal in all t he t echnical and financial aspect s; and

(l)       
"value for money" means best ret urns for each rupee spent in t erms of qualit y, t imeliness,
reliabilit y, aft er sales service, up-grade abilit y, price, source, and t he combinat ion of whole-life
cost and qualit y t o meet t he procuring agency’s requirement s.

(2)       
The expressions used but not defined in t hese rules shall have t he same meanings as are
assigned t o t hem in t he Ordinance.

3.        
Scope and applicability.-       

Save as ot herwise provided, t hese rules shall apply t o all procurement s made by all procuring
agencies of t he Federal Government whet her wit hin or out side Pakist an.

4.        
Principles of procurements.- 

Procuring agencies, while engaging in procurement s, shall ensure t hat t he procurement s are
conduct ed in a fair and t ransparent manner, t he object of procurement brings value for money
t o t he agency and t he procurement process is efficient and economical.

 
5.        
International and inter-governmental commitments of the Federal Government.-

Whenever t hese rules are in conflict wit h an obligat ion or commit ment of

t he Federal Government arising out of an int ernat ional t reat y or an agreement wit h a St at e or
St at es, or any int ernat ional financial inst it ut ion t he provisions of such int ernat ional t reat y or
agreement shall prevail t o t he ext ent of such conflict .

6.        
Language.- 

(1)       
All communicat ions and document at ion relat ed t o procurement s of t he Federal
Government shall eit her be in Urdu or English or bot h. Except where a procuring agency is
sit uat ed out side t he t errit ories of Pakist an and procurement s are t o be made locally, t he
procuring agency may use t he local language in addit ion t o Urdu or English.

(2)       
Where t he use of local language is found essent ial, t he original document at ion shall be in
Urdu or English, which shall be ret ained on record; for all ot her purposes t heir t ranslat ions in local
language shall be used:

           
Provided t hat such use of local language ensures maximum economy and efficiency in
t he procurement .

(3)       
In case of t he disput e reference shall be made t o t he original document at ion ret ained
on record.

7.        
Integrity pact.- 

Procurement s exceeding t he prescribed limit shall be subject t o an int egrit y pact , as specified
by regulat ion wit h approval of t he Federal Government , bet ween t he procuring agency and t he
suppliers or cont ract ors.

****7A.
  e-public procurement.-

The procuring agencies may carry out e-procurement process by using informat ion and
communicat ion t echnologies or digit al or elect ronic means, in such manner as t o cover any or all
aspect s of t he procurement process, in accordance wit h t he regulat ions or guidelines t o be
prescribed by t he Aut horit y.

 
 PROCUREMENT PLANNING

8.         Procurement planning.-

Wit hin one year of commencement of t hese rules, all procuring agencies shall devise a
mechanism, for planning in det ail for all proposed procurement s wit h t he object of realist ically
det ermining t he requirement s of t he procuring agency, wit hin it s available resources, delivery
t ime or complet ion dat e and benefit s t hat are likely t o accrue t o t he procuring agency in fut ure.

9.        
Limitation on splitting or regrouping of proposed procurement.-

Save as ot herwise provided and subject t o t he regulat ion made by t he Aut horit y, wit h t he prior
approval of t he Federal Government , a procuring agency shall announce in an appropriat e manner
all proposed procurement s for each financial year and shall proceed accordingly wit hout any
split t ing or regrouping of t he procurement s so planned.  
The annual requirement s t hus
det ermined would be advert ised in advance on t he Aut horit y’s websit e as well as on t he
websit e of t he procuring agency in case t he procuring agency has it s own websit e.

10.      
Specifications.- 

  ****(1) The procuring agency shall allow t he widest possible compet it ion by defining
such specificat ions t hat shall not favour any single cont ract or or supplier nor put ot hers
at a disadvant age.

 
(2) Any t erms, specificat ions, st andards, feat ures, charact erist ics and requirement s
prescribing t he t echnical or qualit y charact erist ics shall be generic in nat ure and shall not
include reference t o brand name, model number, cat alogue number, name or origin of t he
count ry or similar classificat ion.
 
(3) In case, t he procuring agency is convinced t hat t he use of or a reference t o a brand
name or a cat alogue number is essent ial t o complet e, an ot herwise incomplet e
specificat ion, and no ot her sufficient ly precise or underst andable way of describing t he
charact erist ics of t he goods, works or services t o be procured is provided, t he words "or
equivalent " shall be used, aft er recording specific just ificat ions in writ ing t herein. The
procuring agency shall be responsible t o define t he paramet ers of "equivalence"for all
part icipant s t o procurement process, t o ensure t ransparency.
 
 (4) Solicit at ion document s or not ices for disposal of asset s by t ender, and any addit ional
informat ion made available t o a prospect ive part icipant , shall specify t hat t he asset is t o
be sold on "as is where is" basis and shall disclaim liabilit y aft er sale.

(5) Not wit hst anding anyt hing cont ained in sub-rule (4), a procuring agency shall give a full
and accurat e descript ion of an asset t o be disposed of.

11.      
Approval mechanism.- 

All procuring agencies shall provide clear aut horizat ion and delegat ion of powers for different
cat egories of procurement and shall only init iat e procurement s once approval of t he
compet ent aut horit ies concerned has been 
accorded.

PROCUREMENT ADVERTISEMENTS

12.      
Methods of advertisement.-

(1)       
Procurement s over ****five hundred t housand Pakist ani Rupees
and up t o t he limit of
****t hree million Pakist ani Rupees
shall be advert ised on t he Aut horit y’s websit e in t he
manner and format specified by regulat ion by t he Aut horit y from t ime t o t ime. 
These
procurement opport unit ies may also be advert ised in print media, if deemed necessary by t he
procuring agency:

 
*Provided t hat t he lower financial limit for advert isement on Aut horit y’s websit e for open
compet it ive bidding shall be t he prescribed financial limit for request for quot at ions under
clause (b) of rule 42.

(2)       
All procurement opport unit ies over ****t hree million Pakist ani Rupees
should be
advert ised on t he Aut horit y’s websit e as well as in ot her print media or newspapers having
wide circulat ion. The advert isement in t he newspapers shall principally appear in at least t wo
nat ional dailies, one in English and t he ot her in Urdu.

(3)       
In cases where t he procuring agency has it s own websit e it may also post all
advert isement s concerning procurement on t hat websit e as well.

(4)       
A procuring agency ut ilizing elect ronic media shall ensure t hat t he informat ion post ed on
t he websit e is complet e for t he purposes for which it has been post ed, and such informat ion
shall remain available on t hat websit e unt il t he closing dat e for t he submission of bids.

 
13.      
Response time.-

(1)       
The procuring agency may decide t he response t ime for receipt of bids or proposals
(including proposals for pre-qualificat ion) from t he dat e of publicat ion of an advert isement or
not ice, keeping in view t he individual procurement ’s complexit y, availabilit y and urgency.
However, under no circumst ances t he response t ime shall be less t han fift een ***days for
nat ional compet it ive bidding and t hirt y ***days for int ernat ional compet it ive bidding from t he
dat e of publicat ion of advert isement or not ice.
 
All advert isement s or not ices shall expressly ment ion t he response t ime allowed for t hat
part icular procurement along wit h t he informat ion for collect ion of bid document s which shall
be issued t ill a given dat e, allowing sufficient t ime t o complet e and submit t he bid by t he
closing dat e:

Provided t hat no t ime limit shall be applicable in case of emergency.

(2)       
The response t ime shall be calculat ed from t he dat e of first publicat ion of t he
advert isement in a newspaper or post ing on t he web sit e, as t he case may be:

****Provided t hat for all procurement s up t o t hree million Pakist ani Rupees, t he response t ime
shall be considered from t he dat e of appearance of t he advert isement on t he Aut horit y’s
websit e.

(3)       
In sit uat ions where publicat ion of such advert isement s or not ices has occurred in bot h
elect ronic and print media, t he response t ime shall be calculat ed from t he day of it s first
publicat ion in t he newspapers.

 14.      
Exceptions.-   

It shall be mandat ory for all procuring agencies t o advert ise all procurement requirement s
exceeding **prescribed financial limit which is applicable under sub-clause (i) of clause (b) of
rule 42. However under following circumst ances deviat ion from t he requirement is permissible
wit h t he prior approval of t he Aut horit y,-

(a)       
t he proposed procurement is relat ed t o nat ional securit y and it s publicat ion could
jeopardize nat ional securit y object ives; and

 
 (b)     
t he proposed procurement advert isement or not ice or publicat ion of it , in any manner,
relat es t o disclosure of informat ion, which is propriet ary in nat ure or falls wit hin t he definit ion of
int ellect ual propert y which is available from a single source.

PRE-QUALIFICATION, QUALIFICATION AND DIS-QUALIFICATION OF SUPPLIERS AND

CONTRACTORS

15.      
Pre-qualification of suppliers and contractors.- 

(1)       
A procuring agency, prior t o t he float ing of t enders, invit at ion t o proposals or offers in
procurement proceedings, may engage in pre-qualificat ion of bidders in case of services, civil
works, t urnkey project s and in case of procurement of expensive and t echnically complex
equipment t o ensure t hat only t echnically and financially capable firms having adequat e
managerial capabilit y are invit ed t o submit bids. Such pre-qualificat ion shall solely be based
upon t he abilit y of t he int erest ed part ies t o perform t hat part icular work sat isfact orily.

(2)       
A procuring agency while engaging in pre-qualificat ion may t ake int o considerat ion t he
following fact ors, namely:-

(a)  
relevant experience and past performance;

(b)  
capabilit ies wit h respect t o personnel, equipment , and plant ;

(c)  
financial posit ion;

(d) 
appropriat e managerial capabilit y; and

(e)  
any ot her fact or t hat a procuring agency may deem relevant , not inconsist ent wit h t hese
rules.

 16.      
Pre-qualification process.- 

(1)       
The procuring agency engaging in pre-qualificat ion shall announce, in t he pre-qualificat ion
document s, all informat ion required for pre-qualificat ion including inst ruct ions for preparat ion
and submission of t he pre-qualificat ion document s, evaluat ion crit eria, list of document ary
evidence required by suppliers or cont ract ors t o demonst rat e t heir respect ive qualificat ions and
any ot her informat ion t hat t he procuring agency deems necessary for pre-qualificat ion.

(2)       
The procuring agency shall provide a set of pre-qualificat ion document s t o any supplier
or cont ract or, on request and subject t o payment of price, if any.

 
           
Explanat ion.- For t he purposes of t his sub-rule price means t he cost of print ing and
providing t he document s only.

(3)       
The procuring agency shall prompt ly not ify each supplier or cont ract or submit t ing an
applicat ion t o pre-qualify whet her or not it has been pre-qualified and shall make available t o
any person direct ly involved in t he pre-qualificat ion process, upon request , t he names of all
suppliers or cont ract ors who have been pre-qualified. Only suppliers or cont ract ors who have
been pre-qualified shall be ent it led t o part icipat e furt her in t he procurement proceedings.

(4)       
The procuring agency shall communicat e t o t hose suppliers or cont ract ors who have not
been pre-qualified t he reasons for not pre-qualifying t hem.

*16A. Procurement of common use items, services and commodities through framework
agreements.-

(1)       
The Procuring Agency shall arrange t he procurement t hrough framework agreement s of
recurrent or common use it ems, services including maint enance services and t hose
commodit ies, whose market prices fluct uat e during t he t erm of t he agreement , for a maximum
period of t hree years.

(2)       
The procuring agency shall prepare provisional annual est imat es including descript ion,
specificat ions, st at ement of requirement s and quant it ies, based on rat ional demand est imat es.

(3)       
Based on such est imat e, procuring agency shall init iat e t he prequalificat ion proceedings
for select ion of suppliers and service providers.

(4)        Open and closed framework agreement s may be made wit h t he select ed suppliers and
service providers. Maximum durat ion of open framework agreement s shall not be more t han
t hree years and t he closed framework agreement s shall not exceed one year.

(5)        The procuring agency may on need basis pre-qualify new suppliers or service providers
during cont inuit y of framework agreement s wit h previously pre-qualified suppliers or service
providers.

(6)        The Aut horit y shall make regulat ions, regulat ory guides, guidelines or t emplat es for
procurement t hrough framework agreement s.

*16B. Price adjustment for framework agreements.-

 
(1)       
The procuring agency may, during t he cont ract execut ion, accept a request t o make
price adjust ment (under circumst ance of above normal price volat ilit y) and shall make a
comparison of t he prices request ed against t he nat ional or int ernat ional price indicat or guides
adopt ed by t he Aut horit y and verify t he just ificat ion for such price adjust ment .

(2)        The procuring agency shall det ermine t he fact or or percent age for price adjust ment
approved by t he Principal Account ing Officer (PAO).

17.      
Qualification of suppliers and contractors.-

A procuring agency, at any st age of t he procurement proceedings, having credible reasons for or
prima facie evidence of any defect in supplier’s or cont ract or’s capacit ies, may require
t he suppliers or cont ract ors t o provide informat ion concerning t heir professional, t echnical,
financial, legal or managerial compet ence whet her already pre-qualified or not :

Provided t hat such qualificat ion shall only be laid down aft er recording reasons t herefore in
writ ing. They shall form part of t he records of t hat procurement proceeding.

18.      
Disqualification of suppliers and contractors.-

The procuring agency shall disqualify a supplier or cont ract or if it finds, at any t ime, t hat t he
informat ion submit t ed by him concerning his qualificat ion as supplier or cont ract or was false
and mat erially inaccurat e or incomplet e.

19.      
Blacklisting of suppliers and contractors.-    

*****(1) The procuring agency shall devise a comprehensive mechanism for blacklist ing and
debarment of bidders for a specified t ime in accordance wit h regulat ions made by t he Aut horit y,
and t he bidder or t he bidders shall be declared as-

(a)       blacklist ed and hencefort h cross debarred for part icipat ion in any public procurement or
disposal proceedings for t he period of not more t han t en years, if corrupt and fraudulent
pract ice as defined in t hese rules is est ablished against t he bidder or t he bidders in
pursuance of blacklist ing proceedings;

(b)          blacklist ed and hencefort h cross debarred for part icipat ion in respect ive cat egory of
public procurement or disposal proceedings for a period of not more t han t hree years, if
 t he bidder fails t o perform his cont ract ual obligat ions during t he execut ion of cont ract
or breaches t he cont ract due t o his capacit y and capabilit y t o perform or ot herwise.
However, procuring agency shall init iat e such blacklist ing or debarment proceedings aft er
exhaust ing t he forum of arbit rat ion, provided t hat such provision exist s in t he condit ions
of cont ract , and if such failure or breach is covered in t he respect ive disput e set t lement
clauses of t he cont ract , and

 
(c)            blacklist ed and hencefort h cross debarred for part icipat ion in respect ive cat egory of
public procurement or disposal proceedings for a period of not more t han six mont hs, if
t he bidder fails t o abide wit h a bid securing declarat ion, however wit hout being indulged
in any corrupt and fraudulent pract ice.

(2)    
Such blacklist ing or barring act ion shall be communicat ed by t he procuring agency t o t he
Aut horit y and respect ive bidder or bidders in t he form of decision cont aining t he grounds for
such act ion. The same shall be publicized by t he Aut horit y aft er examining t he record whet her
t he procedure defined in blacklist ing and debarment mechanism has been adhered t o by t he
procuring agency.

 (3)      
The bidder may file t he review pet it ion before t he Aut horit y wit hin t hirt y days of
communicat ion of such blacklist ing or barring act ion aft er deposit ing t he prescribed fee and in
accordance wit h procedure issued by t he Aut horit y, and t he Aut horit y shall evaluat e t he case
and decide wit hin ninet y days of filing of review pet it ion. The decision of t he Aut horit y shall be
considered as final.

 (4)      
A bidder who has been declared blacklist ed or debarred by a foreign count ry,
int ernat ional organizat ion or ot her foreign inst it ut ions shall be t reat ed as blacklist ed and
debarred from part icipat ing in any public procurement proceedings or ent ering int o any public
cont ract for such period as declared by t hat foreign count ry, int ernat ional organizat ions or ot her
foreign inst it ut ions:

Provided t hat in case of public sect or ent it ies, t he Board shall have t he power t o review and
examine t he case on t he basis of evaluat ions made by t he Aut horit y, and decide t he case
accordingly.

(5)      
Not wit hst anding anyt hing cont ained in t his rule, t he blacklist ed or debarred bidder shall
be bound t o perform it s cont ract ual obligat ions in such on-going public cont ract or cont ract s in
which such bidder is already engaged. This shall however be at t he opt ion of respect ive
procuring agency.]

METHODS OF PROCUREMENT

 
 20.      
Principal method of procurement.-  

Save as ot herwise provided hereinaft er, t he procuring agencies shall use open compet it ive
bidding as t he principal met hod of procurement for t he procurement of goods, services and
works.

21.      
Open competitive bidding.- 

Subject t o t he provisions of rules 22 t o 37 t he procuring agencies shall engage in open

compet it ive bidding if t he cost of t he object t o be procured is more t han *t he prescribed
financial limit which is applicable under sub-clause (i) of clause (b) of rule 42.

22.      
Submission of bids.-  

(1)       
The bids shall be submit t ed in a sealed package or packages in such 
manner t hat t he
cont ent s are fully enclosed and cannot be known unt il duly opened.

(2)       
A procuring agency shall specify t he manner and met hod of submission and receipt of
bids in an unambiguous and clear manner in t he bidding document s.

23.      
Bidding documents.- 

(1)       
Procuring agencies shall formulat e precise and unambiguous bidding document s t hat
shall be made available t o t he bidders immediat ely aft er t he publicat ion of t he invit at ion t o bid.

(2)       
For compet it ive bidding, whet her open or limit ed, t he bidding document s shall include
t he following, namely:-

 (a)   
invit at ion t o bid;

(b)    
inst ruct ions t o bidders;

(c)    
form of bid;

 
form of cont ract ;

(e)    
general or special condit ions of cont ract ;

(f)     
specificat ions and drawings or performance crit eria (where applicable);
(g)    
list of goods or bill of quant it ies (where applicable);

(h)    
delivery t ime or complet ion schedule;

(i)     
qualificat ion crit eria (where applicable);

(j)     
bid evaluat ion crit eria;

(k)    
format of all securit ies required (where applicable);

(l)     
det ails of st andards (if any) t hat are t o be used in assessing t he qualit y of goods, works or
services specified; and

(m)   
any ot her det ail not inconsist ent wit h t hese rules t hat t he procuring agency may deem
necessary.

(3)       
Any informat ion, t hat becomes necessary for bidding or for bid evaluat ion, aft er t he
invit at ion t o bid or issue of t he bidding document s t o t he prospect ive bidders, shall be provided
in a t imely manner and on equal opport unit y basis. Where not ificat ion of such change, addit ion,
modificat ion or delet ion becomes essent ial, such not ificat ion shall be made in a manner similar
t o t he original advert isement .

(4)       
Procuring agencies shall use st andard bidding document s as and when not ified by
regulat ion by t he Aut horit y:

Provided t hat bidding document s already in use of procuring agencies may be ret ained in t heir
respect ive usage t o t he ext ent t hey are not inconsist ent wit h t hese rules, and t ill such t ime
t hat t he st andard bidding document s are specified by regulat ions.

(5)       
The procuring agency shall provide a set of bidding document s t o any supplier or
cont ract or, on request and subject t o payment of price, if any.

           
Explanat ion.- For t he purpose of t his sub-rule price means t he cost of print ing and
providing t he document s only.

24.      
Reservations and preference.- 

(1)       
Procuring agencies shall allow all prospect ive bidders t o part icipat e in ****procurement
or disposal proceedings wit hout regard t o nat ionalit y, except in cases in which ****a procuring
agency decides t o limit such part icipat ion t o nat ional bidders only or prohibit part icipat ion of
bidders of some nat ionalit ies, in accordance wit h t he policy of Federal Government .

 
****(2) The procuring agency shall, while evaluat ing and comparing bids, allow for preference t o
domest ic suppliers or cont ract ors,
while compet ing wit h t he int ernat ional bidders in accordance
wit h t he policies of Federal Government or regulat ions made by t he Aut horit y for-

 (i)               
works project s;

(ii)            
cert ain goods manufact ured, mined, ext ract ed and grown in t he Islamic Republic of
Pakist an; and

(iii)          
disposal of cert ain asset s having any pot ent ial impact on nat ional securit y;

(3) The percent age of preference, t o be accorded shall be clearly ment ioned in t he
bidding document s under t he bid evaluat ion crit eria.

25.      
Bid security.-  

 The procuring agency may require t he bidders t o furnish a

fixed amount of bid securit y not
exceeding five percent of t he est imat ed value of procurement det ermined by t he procuring
agency:

Provided t hat in case where t he procuring agency does not require t he bid securit y, t he bidder
shall submit bid securing declarat ion on t he format prescribed by t he Aut horit y in St andard
Procurement Document s.

26.      
Bid validity.-  

(1)       
A procuring agency, keeping in view t he nat ure of t he procurement , shall subject t he bid
t o a bid validit y period.

(2)       
Bids shall be valid for t he period of t ime specified in t he bidding document .

(3)       
The procuring agency shall ordinarily be under an obligat ion t o process and evaluat e t he
bid wit hin t he st ipulat ed bid validit y period. 
However under except ional circumst ances and for
reason t o be recorded in writ ing, if an ext ension is considered necessary, all t hose who have
submit t ed t heir bids shall be asked t o ext end t heir respect ive bid validit y period.  Such
ext ension shall be for not more t han t he period equal t o t he period of t he original bid validit y.

(4)       
Bidders who,-

 
(a)       
agree t o ext ension of t heir bid validit y 
period shall also ext end t he validit y of t he bid
bond or securit y for t he ext ended period of t he bid validit y;

(b)      
agree t o t he procuring agency’s request for ext ension of bid validit y period shall not  
be permit t ed t o change t he subst ance of t heir bids; and

(c)       
do not agree t o an ext ension of t he bid validit y period shall be allowed t o wit hdraw  t heir
bids wit hout forfeit ure of t heir bid bonds or securit ies.

27.      
Extension of time for submission of bids.- 

Where a procuring agency has already prescribed a deadline for t he submission of bids and due
t o any reason t he procuring agency finds it necessary t o ext end such deadline, it shall do so
only aft er recording it s reasons in writ ing and in an equal opport unit y manner. 
Advert isement of
such ext ension in t ime shall be done in a manner similar t o t he original advert isement .

  

OPENING, EVALUATION AND REJECTION OF BIDS

28.      
Opening of bids.- 

(1)       
The dat e for opening of bids and t he last dat e for t he submission of bids shall be t he
same. Bids shall be opened at t he t ime specified in t he bidding document s. The bids shall be
opened at least t hirt y minut es aft er t he deadline for submission of bids.

(2)       
All bids shall be opened publicly in t he presence of t he bidders or t heir represent at ives
who may choose t o be present , at t he t ime and place announced prior t o t he bidding. The
procuring agency shall read aloud t he unit price as well as t he bid amount and shall record t he
minut es of t he bid opening. All bidders in at t endance shall sign an at t endance sheet . All bids
submit t ed aft er t he t ime prescribed shall be reject ed and ret urned wit hout being opened.

29.      
Evaluation criteria.- 

Procuring agencies shall formulat e an appropriat e evaluat ion crit erion list ing all t he relevant
informat ion against which a bid is t o be evaluat ed. Such evaluat ion crit eria shall form an int egral
part of t he bidding document s. Failure t o provide for an unambiguous evaluat ion crit eria in t he
bidding document s shall amount t o mis-procurement .

30.      
Evaluation of bids.- 

 
(1)       
All bids shall be evaluat ed in accordance wit h t he evaluat ion crit eria and ot her t erms and
condit ions set fort h in t he prescribed bidding document s. Save as provided for in sub-clause (iv)
of clause (c) of rule 36 no evaluat ion crit eria shall be used for evaluat ion of bids t hat had not
been specified in t he bidding document s.

(2)       
For t he purposes of comparison of bids quot ed in different currencies, t he price shall be
convert ed int o a single currency specified in t he bidding document s. The rat e of exchange shall
be t he selling rat e, prevailing on t he dat e of opening of bids specified in t he bidding document s,
as not ified by t he St at e Bank of Pakist an on t hat day.

(3)       
A bid once opened in accordance wit h t he prescribed procedure shall be subject t o only
t hose rules, regulat ions and policies t hat are in force at t he t ime of issue of not ice for invit at ion
of bids.

31.      
Clarification of bids.-

(1)       
No bidder shall be allowed t o alt er or modify his bid aft er t he bids have been opened.
However t he procuring agency may seek and accept clarificat ions t o t he bid t hat do not change
t he subst ance of t he bid.

(2)       
Any request for clarificat ion in t he bid, made by t he procuring agency shall invariably be in
writ ing. The response t o such request shall also be in writ ing.

32.      
Discriminatory and difficult conditions.-

Save as ot herwise provided, no procuring agency shall int roduce any condit ion, which
discriminat es bet ween bidders or t hat is considered t o be met wit h difficult y. In ascert aining
t he discriminat ory or difficult nat ure of any condit ion reference shall be made t o t he ordinary
pract ices of t hat t rade, manufact uring, const ruct ion business or service t o which t hat part icular
procurement is relat ed.

33.      
Rejection of bids.- 

(1)       
The procuring agency may reject all bids or proposals at any t ime prior t o t he
accept ance of a bid or proposal. The procuring agency shall upon request communicat e t o any
supplier or cont ract or who submit t ed a bid or proposal, t he grounds for it s reject ion of all bids
or proposals, but is not required t o just ify t hose grounds.

 
(2)       
The procuring agency shall incur no liabilit y, solely by virt ue of it s invoking sub-rule (1)
t owards suppliers or cont ract ors who have submit t ed bids or proposals.

(3)       
Not ice of t he reject ion of all bids or proposals shall be given prompt ly t o all suppliers or
cont ract ors t hat submit t ed bids or proposals.

34.      
Re-bidding.- 

(1)       
If t he procuring agency has reject ed all bids under rule 33 it may call for a re-bidding.

(2)       
The procuring agency before invit at ion for re-bidding shall assess t he reasons for
reject ion and may revise specificat ions, evaluat ion crit eria or any ot her condit ion for bidders as
it may deem necessary.

35.      
Announcement of evaluation reports.- 

****Based on t he procedure adopt ed for t he respect ive procurement ,

t he procuring agency
shall announce t he result of bid evaluat ion, in t he form of final evaluat ion report giving
just ificat ion for accept ance or reject ion of bids at least fift een days prior t o t he award of
procurement cont ract :

Provided t hat in case where t echnical proposal is t o be evaluat ed separat ely, prior t o opening of
financial proposal, t he t echnical evaluat ion report shall be announced before opening of t he
financial proposal.

36.      
Procedures of open competitive bidding.-
 

Save as ot herwise provided in t hese rules t he following procedures shall be permissible for
open compet it ive bidding, namely:-

(a)       
Single st age – one envelope procedure.-

 
 Each bid shall comprise one single envelope cont aining, separat ely, financial proposal and
t echnical proposal (if any). All bids received shall be opened and evaluat ed in t he manner
prescribed in t he bidding document .

(b)      
Single st age – t wo envelope procedure.-

(i)                
The bid shall comprise a single package cont aining t wo separat e

envelopes. Each envelope shall cont ain separat ely t he financial proposal and t he t echnical
proposal;

(ii)      
t he envelopes shall be marked as "FINANCIAL PROPOSAL" and  "TECHNICAL PROPOSAL"
in bold and legible let t ers t o avoid confusion;

(iii)     
init ially, only t he envelope marked "TECHNICAL PROPOSAL" shall be opened;

(iv)     
t he envelope marked as "FINANCIAL PROPOSAL" shall be ret ained in t he cust ody of t he
procuring agency wit hout being opened;

(v)      
t he procuring agency shall evaluat e t he t echnical proposal in a manner prescribed in
advance, wit hout reference t o t he price and reject any proposal which does not conform t o t he
specified requirement s;

(vi)     
during t he t echnical evaluat ion no amendment s in t he t echnical proposal shall be  
permit t ed;

(vii)    
t he financial proposals of bids shall be opened publicly at a t ime, dat e and venue
announced and communicat ed t o t he bidders in advance;

(viii)    aft er t he evaluat ion and approval of t he t echnical proposal t he procuring agency, shall at
a t ime wit hin t he bid validit y period, publicly open t he financial proposals of t he t echnically
accept ed bids only. The financial proposal of bids found t echnically non-responsive shall be
ret urned un-opened t o t he respect ive bidders; and

(ix)     
t he bid found t o be t he ****most advant ageous bid shall be accept ed.

(c)       
Two st age bidding procedure.-         
 

First stage

(i)       
t he bidders shall first submit , according t o t he required specificat ions, a t echnical
proposal wit hout price;

(ii)      
t he t echnical proposal shall be evaluat ed in accordance wit h t he specified evaluat ion
crit eria and may be discussed wit h t he bidders regarding any deficiencies and unsat isfact ory
t echnical feat ures;

(iii)     
aft er such discussions, all t he bidders shall be permit t ed t o revise t heir respect ive
t echnical proposals t o meet t he requirement s of t he procuring agency;

(iv)     
t he procuring agency may revise, delet e, modify or add any aspect of t he t echnical
requirement s or evaluat ion crit eria, or it may add new requirement s or crit eria not inconsist ent
wit h t hese rules:

Provided t hat such revisions, delet ions, modificat ions or addit ions are communicat ed t o all t he
bidders equally at t he t ime of invit at ion t o submit final bids, and t hat sufficient t ime is allowed
t o t he bidders t o prepare t heir revised bids:

Provided furt her t hat such allowance of t ime shall not be less t han fift een days in t he case of
nat ional compet it ive bidding and t hirt y days in t he case of int ernat ional compet it ive bidding;

(v)      
t hose bidders not willing t o conform t heir respect ive bids t o t he procuring agency’s
t echnical requirement s may be allowed t o wit hdraw from t he bidding wit hout forfeit ure of t heir
bid securit y;

Second st age

 (vi)    
t he bidders, whose t echnical proposals or bids have not been reject ed and who are willing
t o conform t heir bids t o t he revised t echnical requirement s of t he procuring agency, shall be
invit ed t o submit a revised t echnical proposal along wit h t he financial proposal;

(vii)    
t he revised t echnical proposal and t he financial proposal shall be opened *****on
respect ive specified, dat e and venue announced and communicat ed t o t he bidders in advance;
and

(viii)    t he revised t echnical proposal and t he financial proposal shall be evaluat ed in t he manner
prescribed above. The bid found t o be t he ****most advant ageous bid shall be accept ed:

           
Provided t hat in set t ing t he dat e for t he submission of t he revised t echnical proposal
and financial proposal a procuring agency shall allow sufficient t ime t o t he bidders t o
incorporat e t he agreed upon changes in t he t echnical proposal and prepare t heir financial
proposals accordingly.

(d)      
Two st age - t wo envelope bidding procedure.-

First st age

(i)       
t he bid shall comprise a single package cont aining t wo separat e envelopes. Each
envelope shall cont ain separat ely t he financial proposal and t he t echnical proposal;

(ii)      
t he envelopes shall be marked as "FINANCIAL PROPOSAL"and "TECHNICAL
PROPOSAL"in bold and legible let t ers t o avoid confusion;

(iii)     
init ially, only t he envelope marked "TECHNICAL PROPOSAL"shall be opened;

(iv)     
t he envelope marked as "FINANCIAL PROPOSAL"shall be ret ained in t he cust ody of t he
procuring agency wit hout being opened;

(v)      
t he t echnical proposal shall be discussed wit h t he bidders wit h reference t o t he
procuring agency’s t echnical requirement s;

(vi)     
t hose bidders willing t o meet t he requirement s of t he procuring agency shall be allowed
t o revise t heir t echnical proposals following t hese discussions;

(vii)    
bidders not willing t o conform t heir t echnical proposal t o t he revised requirement s of t he
procuring agency shall be allowed t o wit hdraw t heir respect ive bids wit hout forfeit ure of t heir
bid securit y;

 
Second st age

(viii)    aft er agreement bet ween t he procuring agency and t he bidders on t he t echnical
requirement s, bidders who are willing t o conform t o t he revised t echnical specificat ions and
whose bids have not already been reject ed shall submit a revised t echnical proposal and
supplement ary financial proposal, according t o t he t echnical requirement ;

(ix)     
*****t he revised t echnical proposal and original financial proposal along wit h
supplement ary financial proposal shall be opened on respect ive specified t ime, dat e and venue
announced in advance by t he procuring agency:

Provided t hat in set t ing t he dat e for t he submission of t he revised t echnical proposal and
supplement ary price proposal a procuring agency shall allow sufficient t ime t o t he bidders t o
incorporat e t he agreed upon changes in t he t echnical proposal and t o prepare t he required
supplement ary financial proposal; and

(x)       
t he procuring agency shall evaluat e t he whole proposal in accordance wit h t he
evaluat ion crit eria and t he bid found t o be t he ****most advant ageous bid shall be accept ed.

37.         
Conditions for use of single stage two envelope, two stage and two stage two
envelope bidding procedures.-

Single st age one envelope bidding procedure shall ordinarily be t he main open compet it ive
bidding procedure used for most of t he procurement . Ot her appropriat e procedures of open
compet it ive bidding shall be select ed in t he following circumst ances, namely:-

 (a)       
single st age t wo envelope bidding procedure shall be used where t he bids are t o be
evaluat ed on t echnical and financial grounds and price is t aken int o account aft er t echnical
evaluat ion;

(b)      
t wo st age bidding procedure shall be adopt ed in large and complex cont ract s where
t echnically unequal proposals are likely t o be encount ered or where t he procuring agency is
aware of it s opt ions in t he market but , for a given set of performance requirement s, t here are
t wo or more equally accept able t echnical solut ions available t o t he procuring agency; and

(c)       
t wo st age t wo envelope bidding met hod shall be used for procurement where
alt ernat ive t echnical proposals are possible, such as cert ain t ype of machinery or equipment or
manufact uring plant
 

****37(A).Unsolicited Proposal.

(1)       
An unsolicit ed proposal received by t he procuring agency from any individual or agency,
privat e or public, consist ent wit h t he mission of t he procuring agency, shall be assessed by t he
assessment commit t ee, consist ing of at least t hree t echnical expert s, t o be not ified by t he
procuring agency. The assessment commit t ee shall ascert ain t he viabilit y of t he proposal. If
t he proposal is found viable, t he procuring agency shall-

(a)    
advert ise t he proposal for open compet it ion wit hout disclosing t he name of t he init iat or
of unsolicit ed proposal;

(b)    
conduct prequalificat ion process;

(c)     
exempt t he init iat or of t he unsolicit ed proposal from t he prequalificat ion; and

(d)   
award five percent addit ional weight age t o t he project proponent in t he combined
evaluat ion of his proposal.

(2)       
If no ot her bidder in response t o t he advert isement submit s bid, t he procuring agency
may award t he cont ract t o t he init iat or of t he proposal.

(3)        In case of bidding compet it ion, if t he bid of init iat or does not emerge as most
advant ageous bid, procuring agency shall give t he init iat or an opport unit y t o make his bid at par
wit h t he most advant ageous bid, however if t he init iat or does not want t o accept t he challenge
t o mat ch t he proposal, he shall be given right of refusal wit hout forfeit ure of bid securit y.

(4)       
The propriet ary informat ion of t he init iat or cont ained in t he proposal shall remain
confident ial and shall not be disclosed t o any int erest ed bidder.

(5)       
Subject t o sub-rule (4), t he procuring agency shall not be responsible for any int ellect ual
propert y right s accruing t o t he proposal of t he init iat or.

(6)       
Unless ot herwise expressly st at ed in writ ing by t he init iat or, t he procuring agency may, if
it considers necessary, disclose any informat ion of t he unsolicit ed proposal or t he bidders as
part of procurement process.

ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS

 
38.      
Acceptance of bids.-  

The bidder wit h t he ****most advant ageous bid, if not in conflict wit h any ot her law, rules,
regulat ions or policy of t he Federal Government , shall be awarded t he procurement cont ract ,
wit hin t he original or ext ended period of bid validit y.

**** 38A.
   Bid Discount. - 
 shall be omit t ed;

**** 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)    
meet s t he evaluat ion crit eria, ensures compliance of specificat ions and ot her t erms &
condit ions expressed in advert isement or bid solicit at ion document s;

(b)    
is not in conflict wit h any provision of t he Ordinance;

(c)     
conforms t o t he t echnical specificat ions;

(d)   
has financial conformance in t erms of rat e reasonabilit y:

Provided t hat except unsolicit ed proposal, in case of pre-qualificat ion proceedings single bid
shall not be ent ert ained.

(2)       
The procuring agency shall make a decision wit h due diligence and in compliance wit h
general principles of procurement like economy, efficiency and value for money.

  

39.      
Performance guarantee.-  

Where needed and clearly expressed in t he bidding document s, t he procuring agency shall
require t he successful bidder t o furnish a performance guarant ee which shall not exceed t en
per cent of t he cont ract amount .

****39A.
Letter of credit.-

 
Where required t he procuring agency may incorporat e t he provision of let t er of credit (LC) and
Int ernat ional Chamber of Commerce incot erms, in such processes where shipment s and cust om
clearance are involved and where
procuring agency’s bank mit igat e procurement risk in t erms
of qualit y assurance and delivery mechanism and bidder’s bank in t erms of it s payment s.

****40. Limitation on negotiations.- 

(1)       
Wit hout changing t he cost and scope of work or services, t he procuring agency may
negot iat e wit h t he successful bidder (wit h a view t o st reamline t he work or t ask execut ion, at
t he t ime of cont ract finalizat ion) on met hodology, work plan, st affing and special condit ions of
t he cont ract .

(2)       
Aut horit y may det ermine t he ext ent and t ypes of negot iat ions on procurement by
regulat ions.

41.      
Confidentiality.-

*****[ The procuring agency shall keep all informat ion regarding t he t echnical or final evaluat ion
confident ial, as t he case may be, unt il t he t ime of  t he announcement of t he respect ive
evaluat ion report s in accordance wit h t he requirement s of rule 35.]

42.      
Alternative methods of procurements.- 

A procuring agency may ut ilize t he following alt ernat ive met hods of procurement of goods,
services and works, namely:-

****(a)  
petty purchases.-

           
Procuring agency may provide for pet t y purchases t hrough single quot at ion where value
of t he object of t he procurement is up t o t he financial limit of one hundred t housand Pakist ani
Rupee, wit hout resort ing t o biding or quot at ions and t he cont ract for t he provision of such
goods, services or works may be a local purchase order.

(b)      
request for quotations.-

A procuring agency shall engage in t his met hod of  

procurement only if t he following condit ions
exist , namely:-
 

****(i)     Where t he value of procurement is more t han one hundred t housand Pakist ani Rupee
but does not exceed five hundred t housand Pakist ani Rupee, t he procuring agency may engage
in procurement t hrough request for t hree quot at ions from GST regist ered firms, original
equipment manufact urers or aut horized dealers, wit hout resort ing t o bidding.

(ii)      
t he object of t he procurement has st andard specificat ions;

(iii)     
minimum of t hree quot at ions have been obt ained; and

(iv)     
t he object of t he procurement is purchased from t he supplier offering t he lowest price:

Provided t hat procuring agencies convinced of t he inadequacy of t he financial limit prescribed

for request for quot at ions in undert aking t heir respect ive operat ions may approach t he Federal
Government for enhancement of t he same wit h full and proper just ificat ions;

(c)       
direct contracting.-  

A procuring agency shall only engage in direct cont ract ing if t he following condit ions exist ,
namely:-

(i)       
t he procurement concerns t he acquisit ion of spare part s or supplement ary services from
original manufact urer or supplier:

Provided t hat t he same are not available from alt ernat ive sources;

(ii)      
only one manufact urer or supplier exist s for t he required 
procurement :

Provided t hat t he procuring agencies shall specify t he appropriat e fora, which may aut horize
procurement of propriet ary object aft er due diligence; and

(iii)     
where a change of supplier would oblige t he procuring agency t o acquire mat erial having
different t echnical specificat ions or charact erist ics and would result in incompat ibilit y or
disproport ionat e t echnical difficult ies in operat ion and maint enance:
 

Provided t hat t he cont ract or cont ract s do not exceed t hree years in durat ion;

(iv)     
repeat orders not exceeding fift een per cent of t he original procurement ;

(v)      
in case of an emergency:

Provided t hat t he procuring agencies shall specify appropriat e fora vest ed wit h necessary
aut horit y t o declare an emergency;

*(vi)   when t he price of goods, services or works is fixed by t he government or any ot her
aut horit y, agency or body duly aut horized by t he Government , on it s behalf; and

**(vii) for purchase of ***mot or vehicle from local original manufact urers or t heir aut horized
agent s at manufact urer’s price.                         

(d)      
negotiated tendering.- 

A procuring agency may engage in negot iat ed t endering wit h one or more suppliers or
cont ract ors wit h or wit hout prior publicat ion of a procurement not ificat ion. This procedure shall
only be used when,-

(i)       
t he supplies involved are manufact ured purely for t he purpose of support ing a specific
piece of research or an experiment , a st udy or a part icular development ;

(ii)      
for t echnical or art ist ic reasons, or for reasons connect ed wit h prot ect ion of exclusive
right s or int ellect ual propert y, t he supplies may be manufact ured or delivered only by a
part icular supplier;

(iii)     
for reasons of ext reme urgency brought about by event s unforeseeable by t he procuring
agency, t he t ime limit s laid down for open and limit ed bidding met hods cannot be met . The
circumst ances invoked t o just ify ext reme urgency must not be at t ribut able t o t he procuring
agency:

 
Provided t hat any procuring agency desirous of using negot iat ed t endering as a met hod of
procurement shall record it s reasons and just ificat ions in writ ing for resort ing t o negot iat ed
t endering and shall place t he same on record.

*****(e)   
force account.-

A Procuring agency, may use force account if t he value of procurement does not exceed t wo
hundred million Pakist ani Rupees, subject t o t he following condit ions, namely:-

(i)        
t he required works are small, scat t ered or remot ely locat ed for which qualified
const ruct ion firms are unlikely t o bid at reasonable prices;

(ii)        
work is required t o be carried out wit hout disrupt ing ongoing operat ions;

(iii)        urgent repairs, rehabilit at ion and remodeling works of nat ional herit age requiring prompt
at t ent ion t o prevent furt her damages;]

(iv)        
where unavoidable risk is bet t er borne by t he st at e owned ent it y t han t hat of
cont ract or;

(v)        
t here are ext reme urgencies which require prompt at t ent ion, or

(vi)       
t he project is of sensit ive nat ure and it s informat ion cannot be shared wit h privat e
sect or:

Provided t hat st at e owned ent it y engaged for t he procurement shall accomplish t he t ask
exclusively t hrough it s own resources wit hout involving privat e sect or as a part ner or in t he
form of a joint vent ure or as a sub-cont ract or:

Provided furt her t hat , where t here are more t han one eligible st at e owned ent it ies having such
resources t o perform t hat part icular assignment , limit ed compet it ion shall be held amongst
t hem t hrough solicit ing t he proposals following any mode of enquiry providing reasonable
response t ime wit hout requirement of publicat ion of open advert isement ”;

(f) Direct Contracting with State Owned Entities.-

A procuring agency may engage in direct cont ract ing wit h st at e owned ent it ies such as
professional, aut onomous or semi-aut onomous organizat ions or bodies of t he Federal or
Provincial Government s for t he procurement of such works and services, including consult ancy
services, which are t ime sensit ive and in t he public int erest , subject t o t he following condit ions,
namely:-

(i)         
t he organizat ion or t he body t o be engaged in direct cont ract ing shall be eligible t o
perform t he works or render t he services;
(ii)        the organization or the body shall accomplish the work or the services including consultancy services,
exclusively through its own resources without involving private sector as a partner or in the form of a joint
venture or as a sub-contractor;

(iii)   
in case t here are more t han one organizat ions or bodies eligible t o perform t he works or
render t he services, t he procuring agency shall hold compet it ion amongst t hem t hrough
limit ed t endering (not ificat ions) wit hout any advert isement s, however, giving reasonable
t ime for submission of t heir applicat ions or proposals;

(iv)        t he procuring agency shall devise a mechanism for det ermining price reasonabilit y t o
ensure t hat t he prices offered by t he st at e owned ent it ies are reasonable for award of
t he cont ract .

43.    
On account payments.- 
All procuring agencies shall make prompt payment s t o suppliers
and cont ract ors against t heir invoices or running bills wit hin t he t ime given in t he condit ions of
t he cont ract , which shall not exceed t hirt y days.

44.      
Entry into force of the procurement contract.- 

A procurement cont ract shall come int o force,-

(a)       
where no formal signing of a cont ract is required, from t he dat e t he not ice  of t he
accept ance of t he bid or purchase order has been given t o t he bidder whose bid has been
accept ed. Such not ice of accept ance or purchase order shall be issued wit hin a reasonable
t ime; or

(b)      
where t he procuring agency requires signing of a writ t en cont ract , from t he dat e on
which t he signat ures of bot h t he procuring agency and t he successful bidder are affixed t o t he
writ t en cont ract . Such affixing of signat ures shall t ake place wit hin a reasonable t ime:

Provided t hat where t he coming int o force of a cont ract is cont ingent upon fulfillment of a
cert ain condit ion or condit ions, t he cont ract shall t ake effect from t he dat e whereon such
fulfillment t akes place.

45.      
Closing of contract.-

 
 (1)       
Except for defect liabilit y or maint enance by t he supplier or cont ract or, as specified in
t he condit ions of cont ract , performance of t he cont ract shall be deemed close on t he issue of
over all delivery cert ificat e or t aking over cert ificat e which shall be issued wit hin t hirt y days of
final t aking over of goods or receiving t he deliverables or complet ion of works enabling t he
supplier or cont ract or t o submit final bill and t he audit ors t o do subst ant ial audit .

(2)       
In case of defect liabilit y or maint enance period, defect liabilit y cert ificat e shall be
issued wit hin t hirt y days of t he expiry of t he said period enabling t he supplier or cont ract or t o
submit t he final bill. Except for unset t led claims, which shall be resolved t hrough arbit rat ion, t he
bill shall be paid wit hin t he t ime given in t he condit ions of cont ract , which shall not exceed sixt y
days t o close t he cont ract for final audit .

MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION

46.      
Record of procurement proceedings.- 

 (1)       
All procuring agencies shall maint ain a record of t heir respect ive procurement
proceedings along wit h all associat ed document at ion for a minimum period of five years.

 (2)       
Such maint enance of record shall be subject t o t he regulat ions framed in t his regard
from t ime t o t ime.

47.      
Public access and transparency.- 

As soon as a cont ract has been awarded t he procuring agency shall make all document s relat ed
t o t he evaluat ion of t he bid and award of cont ract public:

Provided t hat where t he disclosure of any informat ion relat ed t o t he award of a cont ract is of
propriet ary nat ure or where t he procuring agency is convinced t hat such disclosure shall be
against t he public int erest , it can wit hhold only such informat ion from public disclosure subject
t o t he prior approval of t he Aut horit y.

REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES

48.      
Redressal of grievances by the procuring agency.-

 
*****(1) The procuring agency shall const it ut e a commit t ee comprising of odd number of
persons, wit h necessary powers and aut horizat ions, t o address t he complaint s of bidders t hat
may occur prior t o t he ent ry int o force of t he procurement cont ract .
 
(2) Any part y may file it s writ t en complaint against t he eligibilit y paramet ers, evaluat ion crit eria
or any ot her t erms and condit ions prescribed in t he bidding document s if found cont rary t o t he
provisions of t he procurement regulat ory framework, and t he same shall be addressed by t he
grievance redressal commit t ee
(GRC) well before t he proposal submission deadline.
 
(3)  Any bidder feeling aggrieved by any act of t he procuring agency aft er t he submission of his
bid may lodge a writ t en complaint concerning his grievances wit hin seven days of
announcement of t he t echnical evaluat ion report and five days aft er issuance of final evaluat ion
report .
 
(4)  In case, t he complaint is filed against t he t echnical evaluat ion report , t he GRC shall suspend
t he procurement proceedings.
 
(5) In case, t he complaint is filed aft er t he issuance of t he final evaluat ion report , t he
complainant cannot raise any object ion on t echnical evaluat ion of t he report :
 
Provided t hat t he complainant may raise t he object ion on any part of t he final evaluat ion report
in case where single st age single envelope bidding procedure is adopt ed.]
 
 
(6)  The GRC shall invest igat e and decide upon t he complaint wit hin
t en days of it s receipt .
 
(7) 
Any bidder or part y not sat isfied wit h t he decision of t he GRC, may file an appeal before t he
Aut horit y wit hin t hirt y days of communicat ion of t he decision subject t o deposit ing t he
prescribed fee and in accordance wit h t he procedure issued by t he Aut horit y. The decision of
t he Aut horit y shall be considered as final.
 

49.      
Arbitration.- 

(1)       
Aft er coming int o force of t he procurement cont ract s, disput es bet ween t he part ies t o
t he cont ract shall be set t led by arbit rat ion.

(2)       
The procuring agencies shall provide for a met hod of arbit rat ion in t he procurement
cont ract , not inconsist ent wit h t he laws of Pakist an.

50.      
Mis-procurement.-

Any unaut horized breach of t hese rules shall amount t o mis-procurement .

 
 

51.      
Overriding effect.-

The provisions of t hese rules shall have effect not wit hst anding anyt hing t o t he cont rary
cont ained in any ot her rules concerning public procurement s:

Provided t hat t he prevailing rules and procedures will remain applicable only for t he
procurement of goods, services and works for which not ice for invit at ion of bids had been
issued prior t o t he commencement of t hese rules unless t he procuring agency deems it
appropriat e t o re-issue t he not ice for t he said procurement aft er commencement of t hese
rules. 

****52.
    Shall be omitted;

*Amended  vide S.R.O. 65(I)/2006 dated 27-1-2006.

**Amended vide S.R.O. 1241(I)/2006 dated 13-12-2006.
***Amended vide S.R.O. No. 1022(I)/2008 dated 23-9-2008.
****Amended vide S.R.O. No.442(I)/2020 dated 15th May, 2020
*****Amended vide S.R.O. No.834(I)/2021 dated 28th June, 2021

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