Medicines and Supplies

Procurement Manual
Department of Health, Government of Punjab
Recommended Citation

Abstract
Acronyms vii
Acknowledgments ix
Introduction xi
Chapter 1: Procurement Basics 1
1.1 Introduction 1
1.2 Principles of Good Public Sector Procurement 1
1.3 Principles of Competitive Bidding 1
1.4 Procurement Rules / Guidelines 2
1.5 Procurement Methods - Goods (Medicines& Supplies) 2
1.6 Rules and Tools for Procurement of Goods/Medicines 4
1.7 Procurement Plan 4
1.8 Quality Assurance 4
1.9 Incoterms - for International Procurement 6
1.10 Letters of Credit and Other Payment Options 6
1.11 Specifications 6
1.12 Timeline for Procurement 6
1.13 Code of Ethics 7
1.14 Procurement's Role within the Supply Cycle 7
Chapter 2: Planning & Preparation 9
2 Planning & Preparation 10
2.1 Procurement Planning 10
2.2 Preparation for Procurement 12
Chapter3: Standard Bidding Documents 15
3 Standard Bidding Documents 16
3.1 Introduction 16
3.2 Description of Standard Bidding Documents 16
3.3 Steps for Developing Draft Bidding Documents 21
Chapter 4: Invitation and Receipt of Bids 29
4 Invitation and Receipt of Bids 30
4.1 Steps for Inviting Bids 30
4.2 Pre-Bid Conference (Optional) 31

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Chapter 5: Bid Opening, Evaluation & Selection 33
5 Bid Opening, Evaluation & Selection 34
5.1 Introduction 34
5.2 Steps for Bid Opening (Single Stage two envelope method) 34
5.3 When only one bid is received 36
5.4 Bid Evaluation 37
5.5 Steps for Organizing the Evaluation Process 37
5.6 Steps for Preliminary Examination of Bids 38
5.7 Steps for Financial Evaluation (SBEF Table 5-6) 41
5.8 Steps for Verifying Bid Securities 42
5.9 Steps for Qualifying Lowest Evaluated Bidder 43
5.10 Assembling the Contract 44
5.11 Recommending for Award 45
5.12 Government Approvals and Authorization 45
5.13 Announcement of Evaluation Reports 46
5.14 Extending Bid Validity (if necessary) 46
5.15 Redressal of Grievances 46
Chapter 6: Award, Contract & Delivery 47
6 Award, Contract & Delivery 49
6.1 Award of Contract 49
6.2 Performance Security, Contract Signing and Distribution 49
6.3 Payment Arrangements 50
6.4 Contract Performance Monitoring 50
6.5 Pre-Shipment Inspection and Testing 51
6.6 Receipt of Consignment 51
6.7 Claims and Damages 52
6.8 Closing the Contract 53
Chapter 7: 55
7 International Competitive Bidding 55
7.1 Introduction 55
7.2 Standard Bidding Documents 55
7.3 Inviting Bids 55
7.4 Evaluating Bids 56
7.5 Awarding Contract 56
7.6 Pre-Shipment Inspection and Testing 56
7.7 Shipping Documents 56

iv
 7.8 Customs Clearance and Delivery 56
Annexures 57
Annexure 1 Incoterms 59
Annexure 2 Code of Business Ethics 65
Annexure 3 Procurement Plan Format 67
Annexure 4 Financial Limits 69
Annexure 5 Estimated Timeline 71
Annexure 6 Procurement Requisition Form (SPF 1) 73
Annexure 7 Procurement Records 75
Annexure 8 Table of Procurement Steps and Documents 77
Annexure 9 Invitation for Bids (IFB)- Sample Format 81
Annexure 10 Approval from Relevant Competent Authority Form - SPF 2- A 83
Annexure 11 Minutes of Pre-Bid Conference - Sample Format 85
Annexure 12 Forwarding Queries Raised in Pre-Bid Conference - Sample Format 87
Annexure 13 Replying to Queries Raised in Pre-Bid Conference - Sample Format 89
Annexure 14 Notification on Extension of Bid Submission Date - Sample Format 91
Annexure 15 Notification of Bid Opening - Sample Format 93
Annexure 16 Record of Samples Received from Suppliers 95
Annexure 17 Bid Opening Checklist 97
Annexure 18 Record of Bid Opening 99
Annexure 19 Table 1 - Identification 101
Annexure 20 Table 2 - Bidding Process 103
Annexure 21 Table 3- Bid Submission and Opening 105
Annexure 22 Table 4 - Preliminary Examination 107
Annexure 23 Verification Checklist for SBEF Table 4 (column b) 109
Annexure 24 Eligibility Checklist for SBEF Table 4 (column c) 111
Annexure 25 Completeness of Bid Checklist for SBEF Table 4 (column d) 113
Annexure 26 Commercial Responsiveness Sub-Schedule for SBEF Table 4 (column e) 115
Annexure 27 Technical Evaluation Sub-Schedule for Table 4 117
Annexure 28 Evaluation Criteria 119
Annexure 29 Summary of Technical Evaluation 121
Annexure 30 Table 5 - Bid Prices (as Read Out) 123
Annexure 31 Table 6 - Corrections and Unconditional Discounts 125
Annexure 32 Bid Security Checklist 127

v
Annexure 33 Ranking Worksheet 129
Annexure 34 Bid Evaluation Report 131
TABLE 2 - SUMMARY OF TECHNICAL EVALUATION 135
TABLE 3 - SUMMARY OF PRICE EVALUATION 137
Annexure 35 Request for Evaluation Report Approval 139
Annexure 36 Recommendation for Contract Award 141
Annexure 37 Notification of Acceptance - Sample Format 143
Annexure 38 Responsibilities for Contract Performance 145
Appendix 147
Appendix I: Pre-qualification 149
Appendix II: Technical specifications & EMLs 153
Appendix III: 205
Glossary 207

Figures
1. Supply Cycle 8
Tables
1. Medicines with Age or Weight Restrictions 159

vi
Acronyms
Acknowledgments
Medicines, hospital supplies, and equipment significantly impact the quality of patient care, and they
account for a high percentage of healthcare costs. To meet priority healthcare needs and avoid wasting
limited resources, health services officials must make informed choices about what medicines and
supplies to buy.
The Medicines and Supplies Procurement Manual is a practical resource for anyone that procures and
manages medicines and supplies for primary and secondary healthcare facilities; and for anyone
involved in health planning and management, training, and managing medical stores at the provincial
level. This manual includes guiding principles for selecting medicines and supplies and also guidelines
for procurement. To encourage good procurement practice, the manual explains how to use standard
lists as a tool; it also includes the Essential Medicines List: Primary and Secondary Healthcare Facilities.
This manual addresses the key phases of the procurement cycle—from procurement planning and
issuing invitations to bid, bid evaluation, supplier selection—to contract award and management,
including reference to the relevant Punjab Public Procurement Rules, 2014. Procurement staff will find
step-by-step instructions for completing standard bidding documents, opening bids from suppliers,
evaluating supplier bids, and monitoring supplier performance.
To fully understand the scope of the information, and to ensure they are fully prepared to conduct
effective public sector procurement of quality medicines for the people of Punjab, users of this
procurement manual are encouraged to review it thoroughly and use it often.

xi
This chapter includes fundamental information about the principles, policies, and rules that should
guide good public sector procurement practices. This chapter also includes other important topics:
quality assurance (QA), and specifications that support effective public sector procurement. These
procurement basics are applicable when procuring any healthcare commodity.

The Government of Punjab’s Procurement Rules (PPR) 2014 are well-established and widely accepted
principles of good public sector procurement:
Economy, Efficiency, Equality, Fairness, Transparency
Properly administered, open competition (competitive bidding) fulfills these requirements and is the
backbone of good public sector procurement.

1.3.1 Suitable Package

These are design bid requirements that will attract the interest of both large and small foreign and
domestic suppliers. If partial bids are accepted, specify what parts must be bid together and what
parts can be bid alone.
1.3.2 Early Warning
For National Competitive Bidding (NCB), allow bidders at least 15 days to submit offers.
International Competitive Bidding (ICB), allow bidders at least 30 days to submit offers (Rule 14
of PPR 2014).
1.3.3 Non-Discrimination
Use open advertising to invite bids from as many foreign and domestic suppliers as possible—
include newspapers, trade journals, and websites, in accordance with procurement methods as
defined by the Rule 12 of PPR 2014.
1.3.4 Accessibility
Allow wide access to competition by setting reasonable costs for bidding documents and securities;
respond to all written questions and requests for additional information from each bidder as soon as
possible; provide identical information to all other bidders without identifying the source of the inquiry.
1.3.5 Neutrality
Use generic terms for the specifications. In the specifications, do not show preference for a specific
brand or manufacturer; include the phrase or equivalent if a brand name, trademark, or catalogue number
is used (Rule 10 of PPR 2014).
 1.3.6 Formality
Require all bids to be in writing, signed, and in sealed envelopes, submitted before or by a stated date
and hour
1.3.7 Confidentiality
Do not open bids until the assigned date and time (Rule 30 of PPR 2014). Restrict all bid
information to authorized parties. Keep all bid evaluation information confidential until the
specified time of the announcement, in accordance with Rule 58 of PPR 2014.
1.3.8 Consistency
Evaluate all bids against the same criteria and the terms and conditions set forth in the bidding
documents. (Rule 32 of PPR 2014). Do not ask or permit a bidder to change the substance of the
bid after the submission deadline. Bidders may only ask for clarification that will not change the
substance of the bid.
1.3.9 Objectivity
Determine if each bid is substantially responsive by checking for errors, proper signatures, inclusion of
all required documents, and adherence to basic bidding requirements. Select the most advantageous
bid after considering both the price and the evaluation criteria announced in the bidding
documents.
1.3.10 No Negotiation before Award
Using the competitive bidding process, obtain the lowest responsible offer from each bidder. (Rule
57 of PPR 2014) State:- Save as otherwise provided in these rules, a procuring agency shall not negotiate with
any of the bidders.

The Government of Punjab (GoP) has established clear procurement rules / guidelines which are
intended to provide general guidance to personnel procuring goods and services for public sector
organizations including health and population sectors. These guidelines include general principles
such as evaluation of bids based on best overall value for money as opposed to lowest price. For
a complete set of procurement rules, including the Punjab Procurement Regulatory Authority (PPRA)
Act 2009 and Punjab Procurement Rules 2014 see the information on the PPRA website at
http://ppra.punjab.gov.pk

The GoP, when purchasing goods, requires that the most appropriate method of procurement for
a specific purpose be used. The GoP procurement methods align with traditional public sector
procurement practices—as the estimated value of the future contract increases, more stringent and
documented procurement methods are required. For example, for procurements with an estimated
value of less than 50,000 rupees simplified petty purchase procedures can be followed; but, for
procurements with high estimated costs, more complex and documented international competitive
bidding procedures is the default method of procurement. However, non-monetary issues—such as
a limited number of suppliers worldwide or within the country—can also have a role in selecting
procurement methods. The main methods for procuring medicines and supplies are as follows.
1.5.1 Open Competitive Bidding
This bidding is open, unrestricted, and all suppliers can use it.
1.5.1.1 National Competitive Bidding (NCB)
This type of bidding is open to all eligible suppliers; it is usually for national sources only. For
the NCB conditions, see Chapters V and VI of PPR 2014.
1.5.1.2 International Competitive Bidding (ICB)
ICB is an open or unrestricted bidding process that includes international sources. Bids are
solicited by advertising an open invitation to suppliers around the world telling them about the
opportunity to compete for a contract. Bids are invited internationally through the PPRA website
and through other internationally recognized procurement advertisement websites by which all
suppliers are invited to participate in the bidding process. Chapter 7 of this manual explains ICB
in detail.
1.5.2 Alternative methods of procurements
1.5.2.1 Petty Purchases
This method is allowed by the Rule 59(a) of PPR-2014 for goods with a value of less than Rs. 50,000
(fifty thousand rupees). Petty purchases are exempted from the requirements of bidding or
quotation of prices.
1.5.2.2 Request for Quotation
Rule 59(b) of PPR 2014 allows Requests for Quotation (RFQ) to be issued for procurement actions
under Rs 100,000 (one hundred thousand rupees only) and above Rs. 50,000 (fifty thousand
rupees). With this method, quotations are requested and received from a limited number of
suppliers, but not fewer than three; price and contents are compared; the contract is awarded
based on the lowest evaluated cost.
1.5.2.3 Direct Contracting
In Direct Contracting, price and terms are settled with one chosen supplier, without
asking others for bids (e.g., without competition). Rule 59(c)of PPR 2014 limits the use of direct
contracting to rare circumstances, for example, when there is only one producer/supplier in
the country for NCB; or in the world, for ICB. Pre-approval is required.
1.5.2.4 Negotiated Tendering
Subject to approval by head of the procuring entity, the Bid Inviting Authority may engage in
negotiated tendering with one or more contractors under limited circumstances, such as when
the supplies involved are manufactured purely for the purpose of supporting a specific piece of
research or an experiment, or for technical or artistic reasons connected with protection of
exclusive rights or intellectual property, the supplies may be manufactured only by a particular
supplier, or for reasons of extreme urgency (Rule 59(d) of PPR 2014).
1.5.3 Pre-qualification of Bidders
Rule 16 of PPR 2014 allows for the prequalification of suppliers for large and complex civil works
and turnkey projects services, if the procurement is costly and includes technically complex
equipment, and medicines and services of a complex nature, with a precondition that only
technically and financially capable firms demonstrating adequate managerial capability are invited
 to submit bids. Pre-qualification, a formal process is a widely advertised opportunity to pre-
qualify. Before the procurement process, the applicants submit information for the purchaser to
evaluate—their technical, financial, and performance history; including their manufacturing
capacity. Bids are only invited from the pre-qualified firms instead of open advertisement, but the
remainder of the procurement process is exactly the same as for NCB and ICB.
The process for pre-qualification of potential bidders is described in Rule 16-17 of the Punjab
Procurement Rules 2014. See appendix 1 for information on the prequalification of medicines.

1.6.1 Rules for Procurement of Goods

(a) Punjab Procurement Rules 2014
The Punjab Procurement Regulatory Authority, Government of Punjab, developed and
adopted a set of procurement rules, Punjab Public Procurement Rules, which are based on
widely acknowledged principles of good public procurement practices. The rules are
applicable to all procurement for public funds. They are subject to an exception that, if the
rules are in conflict with an international obligation or agreement, the provisions of that
agreement prevail.
PPR 2014 includes the organization of public procurement, basic procurement rules, and
choice of procurement method. Procurement details are based on National Open
Competitive Bidding (OCB). In addition, Rule 67 describes the process for redressal of
grievances by the procuring agency.
(b) The Drugs (Labeling and Packing) Rules, 1986
This describes the requirements for labeling and packing of medicines that will be registered
in Pakistan under the Drug Act 1976.
1.6.2 Tools for Procurement of Goods / Medicines
The main tools that apply to the procurement of goods/medicines are the standard bidding
documents used by Government of Punjab agencies.
(a) Government of Punjab Standard Bidding Documents
The Department of Health Services, Government of Punjab, developed standard bidding
documents for OCB. These documents should be used for all Department of Health
procurements. However, the procuring agencies will use the standard bidding documents, as
and when the authority notifies them.

While procuring entities, the Rule 8 of PPR, 2014 requires that an annual (or annually updated, project
wide) procurement plan be submitted for approval before any procurement can take place. The plan
should include a broad description of the goods to be purchased, a budget and source of the budget,
a time frame when the goods will be procured, and the method of procurement. See chapter 2 for more
information about procurement planning.

The quality of medicines is an important component of an overall approach to quality of care within the
health sector programs. The consequences of poor quality product include no therapeutic effect, as well
as possible adverse health effects. Poor quality products, or even the perception of poor quality, can
severely compromise the credibility of an otherwise successful health sector programs. For these reasons,
ensuring the quality of medicines is critical.
For many, product QA is associated with a simple visual inspection of a product for defects or running
an analytical test. While these are important components of QA, the process spans a much broader range
of activities that involve the phases from product development through to the end user.
In discussing product quality, three terms—i.e., QA, Good Manufacturing Practices (GMP), and quality
control—are often used interchangeably. While the activities complement and support each another, they
are distinctly different.
QA is generally understood to be the sum of all activities and responsibilities intended to ensure that
products meet all their applicable quality specifications.
GMPs are the component of QA that ensures products are consistently produced and controlled to the
quality standards appropriate for their intended use and as required by the governing National Regulatory
Authority (NRA). GMPs are primarily intended to reduce the risks inherent in production that cannot be
completely prevented by testing the final products.
Quality control is the part of GMPs that focuses on product sampling, specification review, and
product testing. Quality control also includes the documentation and release procedures that ensure all
necessary tests are completed before materials are released for use; or that their quality is satisfactory
before products are released for sale.
The responsibility for ensuring product quality is shared among several parties: product developer,
NRA, manufacturer, procurement agency, logistics system, and end user. The role of the procurement
agency in supporting QA is briefly described below.
The procurement agency is responsible for ensuring that only products of good quality are received into
the healthcare system—at the right time, in the right quantity, and at a reasonable cost. The procurement
unit significantly impacts product quality by establishing well-defined contract specifications for the
products it procures. Specifications should require certification that the manufacturer has
complied with GMP, that the product is registered in the country where it will be used, and that it
meets local regulatory requirements. In addition, contract specifications should describe the desired
physical characteristics of the product, as well as specify the pre-shipment inspection and test
requirements against which the product will be evaluated before the manufacturer ships it. The
procurement agency can also help ensure that only quality medicines are procured by limiting
procurement to manufacturers whose medicines are manufactured and registered in countries with
stringent regulatory authorities.
This manual contains information that support the procurement agency’s responsibilities in procuring
quality medicines. Appendix 2 includes the technical specifications that the manufacturers must provide:
certification of registration, the drug manufacturing license number, and certification of compliance with
current Good Manufacturing Practices (cGMPs). They also identify the product’s physical requirements
and the physical tests to be conducted to confirm product acceptability. The special conditions of the
contract include clauses that grant the procuring agency the right to conduct pre-shipment and post-
shipment inspections, and tests to ensure that the product complies with the stated requirements.
International Commercial Terms (Incoterms) are used primarily for international procurements. The terms
EX Works, Carriage and Insurance Paid to (CIP), and Free on Board (FOB) are incorporated into sales
contracts world-wide; they define the responsibilities of buyers and sellers, and they stipulate how shipping
costs and risks will be divided. Therefore, buyers and sellers must always stipulate which INCOTERM
will apply when they discuss a price. If the price is agreed to on an EX Works basis, it means that the
buyer must pay separately for freight and handling costs. If the same price is agreed to be a CIP, it means
that freight and handling costs are included in the price under discussion; thus the seller will pay in due
time.
The International Chamber of Commerce (ICC) publishes Incoterms; the United Nations
recognizes them as clearly defining the most common terms used in international trade.
Incoterms are updated regularly; purchase contracts must reference the applicable version. The
information in this manual is based on Incoterms 2010.
See annexure 1 for additional details for each Incoterm, including a table summarizing the
responsibilities of sellers and purchasers.

Letters of credit are banking instruments commonly used in international trade for payment of goods to
be supplied; they have advantages for both the buyer and the seller:
• The sellers are assured that they will receive prompt payment.
• The buyers are assured that they can enforce contract conditions, such as quality
requirements and shipping dates.
For basic information about how a letter of credit works, other payment options, and additional details
about letters of credit, see the Contraceptives Procurement Manual and the ICC publication Uniform Customs
and Practice for Documentary Credits.

Detailed technical specifications are critical to successful procurement because they provide
potential suppliers with an accurate and complete picture of what is required. They are written in the
technical terms that correspond to the relevant industry; and they precisely describe characteristics and
performance requirements of the goods to be purchased. They are product neutral; that is, they do not
refer to brand names or catalog numbers, and they describe requirements generically. If alternative sets
of standard accessories are available, the specifications clearly indicate the choices. Under the bidding
format used by both the Government of Punjab (Rule 10 of PPR 2014) and the World Bank, the
purchasing entity must provide technical specifications. Later, the formal specifications will become part
of the contract between the buyer and the seller. See chapters 2 and 3 and appendix 2 for more information.

The procuring agencies are required to award the contract within the original or extended bid validity
period; which cannot be more than 90 days for NCB, and more than 120 days for ICB. However, the
procuring agency can extend the bid validity period by not more than the original bid validity period,
after obtaining approval from the competent authority of the procuring agency and recording the
reasons in writing.
Public sector procurement by OCB is a slow process. Six months or more may be required for activities
involving the procurement office, evaluation committees, approvals, and time for manufacturing and
shipping. This timeline must also add an allowance of two to four months for normal government
budgeting and planning (Operational Plans; Annual Procurement Plans); totaling a span of 8–10
months from the moment a need is identified by an end user to the time goods are received, inspected,
and released for use.
Of course, all procurements do not take 8–10 months; there are many variables; including, but not
limited to (1) procedures and approvals in force at different financial thresholds; (2) supply issues,
such as marketplace shortages; (3) technical issues, such as availability of detailed specifications; and
(4) QA issues for pharmaceutical products in Pakistan.

The Government of Punjab also promotes a business code of ethics for professional behavior by
personnel engaged in procurement and contracting activities. This code is based on the PPR 2014
Rule 2 Definition sub-rule (1) (p) Corrupt and Fraudulent Practices. See annexure 2 for a copy of the
Code of Business Ethics and Integrity Pact.

The supply cycle for providing health commodities to the public sector has several components,
including financing, procurement, warehouse management, inventory control, distribution, and more.
Figure 1 identifies some of the major steps and components of the overall supply cycle. This manual
is focused on the procurement components of the supply cycle, which include planning—confirming
requirements and funding, selecting a procurement method—developing procurement documents,
inviting supplier proposals/bids, evaluating proposals/bids, selecting a supplier and awarding the
contract, monitoring the supplier’s contract performance, and receiving the goods. These procurement
components are discussed in more detail in the chapters 1 and 2 in this manual.
Because of the extended timeframe associated with competitive public sector procurement, realistic
planning is very important. It is especially critical for healthcare commodities, such as essential
medicines and supplies; because, if these items are stocked out, people may not receive the treatment
they need. Rule 8 of PPR 2014 states:

A procuring agency shall, within one month of the commencement of a financial year, devise annual planning
for all proposed procurements with the object of realistically determining the requirements of the procuring agency,
within its available resources, delivery time or completion date and benefits that are likely to accrue to the
procuring agency in the future
2.1.1 Budget Process and Operational Plan
 Planning for the next financial year should begin halfway through the previous
financial year, that is to say in January each year
 The annual Procurement Plan should be formulated at the same time or before
the annual budget forecast
 Procurement plans should be reviewed on a quarterly basis. Changes to the
annual procurement plan may be required due to (1) shortage of funds in
quarterly releases (2) availability of supplementary funds and adjustments made
accordingly.
Beginning in January each year, program managers are asked to review their program goals
and activities for the coming fiscal year (1st July – 30th June), consider probable resources
(budget) and estimate medicines, supplies, equipment and services that will need to be purchased.
These plans and estimates are submitted to the respective departments where changes are
sometimes made. The resulting Operational Plans and Budgets are consolidated and forwarded
to the government for financial approval.
After the annual operational plans are refined and approved by the relevant competent
authority, program managers must communicate their approved requirements to the
appropriate procuring units—usually in a completed Procurement Requisition—and
including the basic product specifications and cost estimates within their approved
budgets.
Data on two items are used to decide the amounts needed, per year, for procuring
medicines and supplies:
 data on the quantity of medicines dispensed to end users during the previous period
 an account of the stock on hand and how much has been ordered, but not yet
delivered.
2.1.2 Procurement Plan
Procurement plans help manage and track the procurement process. See annexure 3 for an
example of a procurement plan. As mentioned in chapter 1, procurement plans include a broad
description of the medicine or supply to be purchased, a budget amount and source, a time period
in which the medicines will be procured, and the method of procurement.
2.1.3 Confirm Availability of Funds
Before a specific procurement plan is developed for medicines procurement, it is important to confirm
with the appropriate finance Chapter that adequate funds and, if needed, foreign exchange are available
to support the procurement.
2.1.4 Process for Developing an Annual Procurement Plan
2.1.4.1 Gather Information
The assigned procurement unit should receive procurement information early in the year
to allow for sufficient time to process and procure the requirement.
However, when procurement information is not provided in a timely manner, it may
become necessary to directly contact the party responsible for generating the information to
request it be provided by a specified deadline.
 Send a letter to all users asking them to submit their requirements for medicines and
supplies for the next fiscal year; specify a deadline.
 Send a reminder letter to users who do not respond within 45 days, with copies to the
next higher-level office stating the need to submit requirements by the specified
deadline.
 Prepare a list of users who failed to submit their requirements by the final deadline.
 Send a letter to the users who are late, with a copy to the next higher-level offices
stating that the users who have failed to submit their requirements by the final deadline
will not be included in the procurement plan for the following year; no requests will
be accepted later.
2.1.4.2 Begin Filling out the Procurement Plan
Using the sample format shown in Annexure 3, the procurement unit(s) should begin to fill out
the Procurement Plan.
 Describe the medicines; enter the unit and quantities required. However, long lists
from Essential Medicines List (EMLs) can be attached to the procurement plan.
 List the estimated cost of the medicines and the source of funds for each
procurement...
 Enter the procurement method (for example, “Competitive Bidding”). Chapter 1
includes detailed information on procurement methods allowed under PPR 2014. See
annexure 4 for a chart showing the financial limits for different types of procurement.
 Indicate the contract approving authority for each, procurement per financial limit.
2.1.4.3 Estimate Timeframes and Complete the Procurement Plan
To estimate a timeframe for any single procurement activity, it is necessary to understand the
procurement steps involved, the level of approving authority required, time limits set by
government regulation, and basic marketplace issues for the medicines being procured.
 Annexure 5 includes an example timeline for procurement, assuming a high-value contract
and a high-level approving authority for procurement that takes several months.
 Considering that procurement work must be sequenced (not all procurement is
undertaken at the same time), insert indicative dates for advertising the bid, bid
opening, bid evaluation, approval to award, notification of award, signing of contract,
and completion of contract.
 Add the total days; enter that number in the last column—Total Time (in days).

2.2.1 Analyze Procurement Requirements

The procurement unit must review requirements received, either from health programs, districts, and
health institutions—often, they are procurement requisitions. Analyze their needs in terms of—
• type of medicines and supplies
• estimated quantity and cost
• potential sources
• prior review requirements, etc.
• type of supply available (i.e., after production, off-the-shelf, or from wide range of market, etc.)
• estimated lead time for delivery
• previous frequency of purchase.
At times, the procurement unit may need to prepare a procurement requisition. See annexure 6 for a
sample procurement requisition form and guidance on preparing a requisition.
2.2.2 Open Procurement File
The procurement unit will open one set of files for each procurement activity in the approved
procurement plan. Each procurement file must contain the appropriate procurement records, as required
by Rule - 65 of PPR 2014. See annexure 7 for a list of records that can be considered for inclusion in the
procurement file.
After the procurement process, from planning to delivery of goods, is completed, all pertinent
documents should be placed in an appropriate file for easy reference and record. By the time the
procurement action is complete, each file (or set of files) will contain a record of the entire procurement
action—from the planning stage to the completion of the contractual liabilities.
2.2.3 Procurement Records – Retention
The Rule-65 of PPR 2014 requires procuring entities to preserve records and documents concerning their
public procurement for minimum period of five years from the date the Supplier finally discharge its
contractual obligations. The records of the procurement process of the procuring entity shall be open to
internal and external audit or to procurement post-review in the prescribed manner or for scrutiny or
inspection by Government or in accordance with any law.
2.2.4 Summary Description of Planned Procurement
To guide the development of bidding documents and specifications, the procurement unit should
write a summary description for each planned procurement. Assign an experienced procurement officer
or a technical specialist to gather any missing information. The summary description includes—
 description and function of the medicine with enough detail to develop a technical
specification.
 unit of measure: tablets, packs, bottles, vials, ampoules, cycles, tubes, etc.
 quantity
 confirmed budget
 procurement method
 date needed
 final destination: within Punjab, provincial warehouse, or districts
 requesting health office, or other entity, and date of request
 shipping terms: CIP, EX Works, etc., for international procurement
 payment terms
 name and address of consignee
 project identification numbers
 procurement approval date
 special requirements for contract, including QA testing
 special marking requirements for shipping boxes
 list of approvals required
 source of funds
 notes about special features of the goods or programs they will be used for, or the overall
market situation.
Newly hired procurement staff should ask for help from more experienced officers about the shipping
and payment terms1 that should be used for the procurement package.
The technical specification committee, or other assigned technical experts, may need to be consulted
about any special contract wording, other than the technical specifications and schedule of
requirements. In some cases, this information will not be available until the document development
phase.
2.2.5 Development of Technical Specifications
For many medicines, the information found in the essential medicines list can be used to develop the
technical specifications and requirements needed for procurement. For other medicines, the assistance
of a technical expert who has knowledge on medicines may be needed to help translate program
managers’ approved medicine requirements into technical specifications that will give potential suppliers
an accurate and complete picture of what is required. The specification must comply with Rule-10 of PPR
2014.
Early in the procurement process, technical consultants or other personnel may need to ask program
managers to provide more information, or to make certain decisions about their requirements. As soon as
possible, compile information gathered from the end users into formal procurement specifications for the draft
bidding documents.
See appendix 2 for essential medicines specifications that can be used for procurement.
2.2.6 Obtain Approvals
Under Rule-11 of PPR 2014, approval by the appropriate competent authority for the procurement plan
constitutes administrative and financial approval:
 procurement of the goods included in the plan
 method of procurement
 time schedule for procurement, as shown in the procurement plan
 office, cell, or other entity that will do the purchasing
 estimated budget of procurement
 prior approval requirements.

2.2.7 Overview of Procurement Steps and Documents

Each procurement activity will follow a sequence of activity and requires specific documents
according to the method of procurement employed. A table of procurement steps and documents
is available in annexure 8; this reference tool will help new procurement staff visualize the steps that
may be required when procuring medicines and supplies. It includes a framework for what will be
included in subsequent chapters.
The bidding document is critical to the success of the bidding process. For the bidders, it includes the—

 precise description of the goods required

 rules for the bidding process
 evaluation criteria and methodology to be applied
 eligibility and qualification criteria to be applied
 type and conditions of the proposed contract.
A well-drafted bidding document should result in a successful procurement process; therefore, every
part of these documents must be correct and complete. The relevant competent authority must approve
the final document, prior to issuing the document.
Under Rule - 33 (1) of PPR 2014: “No bidder shall be allowed to alter or modify his bid after the closing
time for submission of bids The procuring agency may, if necessary after opening of the bids, seek
and accept such clarifications of the bid do not change the substance of the bid.”
Careful drafting of the bidding documents is the key to preventing problems during bidding,
evaluation, and contract performance.
To minimize the possibility of a poorly drafted, incomplete, or inaccurate document, in the wrong
format, procurement units must use the standard bidding documents authorized by the Department of
Health (DOH), Government of Punjab. This chapter covers the standard bidding documents used by
DOH Punjab for open competitive bidding under single-stage two-envelope procedure.

In the standard bidding documents, several sections cannot be changed, while other sections
may allow changes when the buyer completes them. The standard bidding documents include
guidance notes and instructions to the procuring unit. Procuring units will delete the notes,
instructions, and unused options when they prepare the documents for sale to potential bidders.
Each section of the standard bidding documents has a separate function. Under Rule 25 (2) of
PPR 2014 bidding documents will include the following information:

 letter of invitation for bid

 data sheet with information about the assignment
 instructions for preparing bids
 amount and type of payment for bid security and performance guarantee, where applicable
 type and place, and date and time, for submitting bidding documents
 type, place, and date and time to open the bids
 method of procurement used
 detailed and unambiguous evaluation criteria
 terms and conditions of the contract agreements, as much as the procuring agency knows
 Terms of Reference and technical specifications of goods, works, or services to be procured,
subject to Rule 13 of PPR 2014
 how the tender price will be assessed and computed, including tax liability information
 currency used to formulate and express tender price
 bid validity period
 copy of integrity pact to be signed by the parties, where applicable
 any other information specified in regulations issued by the authority..
3.2.1 Invitation for Bids (IFB)
Invitation for Bids (IFB) includes a copy of the advertisement or notification announcing the
opportunity to bid according to Rules 12-13 of PPR 2014, along with relevant and essential
information to help bidders decide whether or not to participate in the particular bid. It precedes sale
of the Bidding Document and is provided with the documents for information only. The contents
must be consistent with the Bid Data Sheet and Special Conditions of Contract. See Annexure 9 for
a sample IFB
3.2.2 Instructions to Bidders (ITB)
The Instructions to Bidders (ITB) provides information to bidders for preparing and submitting their
bids; it explains rules and procedures for—
 scope of the bid
 eligibility
 bidding procedure/method
 bid submission
 bid opening
 bid evaluation
 award of the contract
 definitions and warnings about fraud and corruption.
The ITB must be included in bidding documents as is, without any changes to the wording.
Information specific to the bid package is in the corresponding clauses of the BDS in the next section
of the standard bidding document
3.2.3 Bid Data Sheet (BDS)
The BDS includes information specific to the procurement action. The procuring agency uses this
section to supplement and/or modify like-numbered clauses in the instructions to bidders. It
includes, but is not limited to—
 dates, times, places, and other specific information about bid opening
 bidding procedure
 directions for submitting bids, including markings and timeframe
 bid currency and language
 amount and type of bid security, if required
 specific criteria that will be used to evaluate bids, including anything, other than price, that will
be applied
 criteria for eligibility of medicines and supplies, including the particular documents required
to establish eligibility and conformity to bidding documents
 criteria for eligibility and qualification of bidders and the particular documents required to
establish bidder’s eligibility and qualification
 specific information about awarding the contract.
3.2.4 Ineligible Bidders
Firms and agencies that the government has blacklisted, and that do not meet the eligibility criteria
specified in the standard bidding documents, are not eligible to participate in the bidding process.
Lists of firms that are excluded from bidding on specific contracts can be found on the
Department of Health Punjab website. http://health.punjab.gov.pk/ and on the PPRA website
http://www.ppra.punjab.gov.pk.
For international procurements, international agencies—the World Bank, USAID, United Nations
Children’s Fund (UNICEF), United Nations Population Fund (UNFPA), World Health
Organization (WHO), and Asian Development Bank (ADB)—also maintain lists of firms that are
not eligible to bid on their contracts because they violated the fraud and corruption provisions. The
procurement unit should not enter into any contract with these firms.
3.2.5 General Conditions of Contract (GCC)
The General Conditions of Contract (GCC) are widely used clauses that will apply to the future
contract. This section must be included in the bidding documents as is, without changing any
wording. General conditions cover standard, normal contract issues, such as—
 definitions
 standards
 delivery
 documents
 payments
 warranty
 termination
 force majeure
 governing language
 notices
 applicable laws, etc.

Changes and additions are made through Special Conditions of Contract (SCC).

3.2.6 Special Conditions of Contract (SCC)

SCC provides clauses for the contract specific to the procurement action. The procuring agency
uses this section to supplement and/or modify like-numbered clauses in General Conditions
of Contract. Special Conditions apply to unique requirements of the procurement such as:
 requirement for immediate notification of air-shipments
 regulatory compliance issues
  pre-shipment inspection and testing
3.2.7 Technical Specifications (to be prepared by purchaser’s technical expert)
Technical specifications include a precise technical description of the medicines and supplies to
be ordered. The procuring agency inserts the specification—commonly prepared by a technical
expert—into the standard bidding documents. See appendix 2 for an approved list of essential
medicines, with specifications for primary and secondary healthcare facilities.
Technical specifications are one of the most important parts of procurement. They are the
benchmarks against which the buyer verifies the technical responsiveness of bids and,
subsequently, evaluates the bids. The technical specifications must be in line with Rule 10 of PPR
2014. They must include a complete description of the product, written in an industry-standard
vocabulary and format, including, but not limited to—
 technical and performance characteristics
 dosage, form, size, units, quantity and intended use
 packaging, packing, and marking
 regulatory requirements
 applicable standards and required certifications
 QA criteria, including detailed tests required
 acceptance criteria
 detailed activities to be performed by the supplier, if required
3.2.8 Schedule of Requirements
Lists the medicines and supplies and required delivery schedules. The procuring agency completes a
form provided in the standard bidding documents that specifies:-
 procurement plan number/reference
 named items required for purchase
 quantities
 delivery schedule and place
 special notes
 method of penalty
3.2.9 Evaluation and Qualification Criteria
The purchasing unit announces criteria in the standard bidding documents (SBD) under Rule 31 of
PPR 2014 which will be used to determine the lowest evaluated bid, and the bidder’s qualification
requirements. Qualification criteria usually include, but are not limited to:
 Financial capability in terms of average annual turnover during each of the past three years
as evidenced by audited financial statements.
 Experience and technical capacity demonstrated by the number of years manufacturing
and/or selling the medicines to be supplied, completed contracts of similar nature with
contact information for verification and bank references.
 Licensing and registration by the Drugs Regulatory Authority of Pakistan (where
applicable)
The evaluation process that the health department follows includes a review of several product
and company requirements; they assign points (up to 100 points total) based on the level of
compliance with the requirements. The evaluation criteria are included in the health
department’s standard bidding documents.
3.2.10 Additional Bidding Document Forms
In addition to the SBDs discussed above, the bidding document package will often require other
forms, which are discussed below.
3.2.10.1 Bid Submission Form or Cover Sheet
To be completed and signed by the bidder.
 The signed bid submission form commits the successful bidder to the conditions set out
in the bidding documents; it becomes a temporary contract when the award is
announced.
3.2.10.2 Letter of Intention (Bid Form 1)
To be completed and signed by the bidder. It is an understanding of the bidder about the bid
and undertaking to comply with all the requirements of SBD.
3.2.10.3 Affidavit (Bid Form 2)
To be completed and signed by the bidder on a judicial stamp paper. Sample format given in
the SBD.
3.2.10.4 Documentary Evidence of eligibility of bidders and goods (Bid Form 3A)
List of documents attached providing evidence of eligibility of the bidder and goods to be
supplied.
3.2.10.5 Manufacturer’s Authorization (Bid Form 3B)
If the bidder is not the manufacturer, this is to be completed and signed by the manufacturer
of goods.
• Authorizes the named party (bidder) to submit a bid.
• Confirms warranty obligation.

3.2.10.6 Past Performance (Bid Form 4)

Lists details of previous supplies completed by the supplier
3.2.10.7 Price Schedule (Bid Form 5 A&B)
To be completed and signed by the bidder for each individual item and submitted in a separate
sealed envelope marked as “Financial Bid”.
• Form 5A includes itemized charges for unit price of goods, number of units, total price,
discounts and final price inclusive of all taxes
• Form 5B includes price analysis or unit price breakup for ex-factory price, sales/income
 tax, other duties, packaging, transportation and other incidental costs
3.2.10.8 Bid Security Form
This type of bid security is used for international procurements of very high estimated value;
it replaces bid security as a percentage of the estimated value in the form of a call deposit.
The form should be filled in and signed by guarantor (bank), or used as an example for the
document on its own letterhead included in the Financial Bid.
• Guarantors agree to pay specified amount—not below 1 percent and not above 5
percent of the bid prices—if the bidder receives an award, but fails to go forward with a
contract. See Rule 27 of PPR 2014, for clarification.
3.2.10.9 Contract Agreement Form (Purchase Order)
The purchaser and winning bidder sign the contract agreement form.
• The form incorporates relevant sections of the bid documents into the binding
contract:
− General Conditions of Contract
− Special Conditions of Contract
− Technical Specification and Schedule of Requirements
− Supplier’s Bid and original Price Schedules
− Purchaser’s Notification of Award
− Any other documents specified by Purchaser
3.2.10.10 Performance Security Form
The guarantor (bank) completes and signs this form, or it will be on the bank’s letterhead
as an example for the document.
 Guarantor’s undertaking to pay specified amount as required in the SBD (Rule-56 of PPR
2014, “which should not exceed 10% of the contract amount” if awarded bidder defaults
on contract.
3.2.10.11 Certificate of Pharmaceutical Product
The manufacturer of the medicines being procured provides this as part of the technical bid.
 This certificate, which is issued in the format recommended by WHO, establishes the
status of a pharmaceutical product moving in the international market and the status of
the applicant for registering medicines with the regulatory authorities / licensing for sale
and marketing of the pharmaceutical product.
 Part of a scheme developed by WHO to help combat the sale and distribution of sub-
standard and/or counterfeit pharmaceutical products.

All but three Chapters of the Standard Bidding Documents must be filled out with information specific to
the procurement at hand. The Chapters that are to be filled out include:
a. Bid Data Sheet
 b. special conditions of contract
c. evaluation and qualification criteria
d. schedule of requirements
e. technical specifications
Additionally, an IFB must be completed with information that matches the information provided in
the BDS and Special Conditions of Contract, after they are developed.
The treatment of a particular topic must be consistent from section to section of the bidding
documents; extreme care must be taken to avoid language that contradicts, overlaps, or duplicates
wording in another section.
The procurement unit will need to look for information in the draft bidding documents and be the
coordination point for integrating the different sections. Some required information will be available
from the approved procurement plan; preparations will be made at the early stages of procurement.
For additional information on procurement planning, see section 2 for a summary description of
the planned procurement.
3.3.1 Select and Study the Standard Bidding Documents
Procurement staff and managers should select the SBD that best suits the requirements and the
procurement method approved in the procurement plan. They should study each section of the
selected document thoroughly. In this section, we refer to the SBDs used for a single-stage two-
envelope open competitive bidding by by DOH Punjab in compliance with PPR 2014. Preparing
carefully will ensure that the bidding document draft is well prepared, consistent from section to
section, and includes all the information needed for the bid evaluation. In addition, it will show how
the procurement process is expected to proceed and the rules that must be followed.
The procurement unit must look for and identify any problems that might occur during the bidding,
evaluation, and contract performance; as much as possible, they should design the bidding document
clauses to prevent problems.
Instead of working on the document sections in order, it is more efficient to start in the middle and
work on several sections at the same time. Develop the technical specifications and the schedule of
requirements first; they are the bones of the procurement around which everything else will be built.
3.3.2 Obtain Technical Specifications
Detailed technical specifications should be written by qualified experts and provided to the Procurement
Unit in compliance with Rule 10 of PPR 2014. Technical specifications include different things,
depending on the type of product that is going to be purchased:
For medicines and supplies:
 chemical and pharmacological attributes
 generic name (international non-proprietary name [INN])
 strength
 dosage form
 pack size.
• quality and safety issues
• shelf life
• presentation (primary packaging)
 • pre-shipment inspection (and possibly testing)
• labeling
• packaging.

See appendix 2 for information on the technical specifications for essential medicines.
3.3.2.1 If the specifications offered are inappropriate, based on the information and the
information in appendix II, contact the responsible party, the technical consultant, and/or
the specification committee—if it exists—for clarification and any necessary revision.
3.3.2.2 Use the detailed specifications to guide development of all the remaining bidding document
components.
3.3.3 Prepare Schedule of Requirements
3.3.3.1 Review the Procurement Plan and Summary Description of planned procurement before
working on the Schedule of Requirements.
3.3.3.2 Remove the schedule of requirements section from the applicable set of standard bidding
documents; review it carefully.
3.3.3.3 Read the guidance notes; complete the schedule of requirements, as follows:
Procurement plan: Insert a sequential number to identify the procurement plan.
Description: Write a short description of the medicine—just enough to clearly identify the
product. (The technical specifications will have a more detailed description.)
Quantity: Enter the total quantity that will be purchased under the contract. Do not
mention partial shipment amounts.
Delivery schedule: Establish the date when the end user needs the medicines; carefully
calculate a delivery date.
Mode of shipment: Enter air, sea, overland, etc.
Point of delivery: The purchaser identifies this; for example, provincial or district
warehouse, or at the facility level.
(a) Special notes: Add additional information, explanations, or qualification at the
bottom of the form.
3.3.4 Begin Drafting the Bid Data Sheet
Use the BDS to modify and augment information and requirements in the ITB. Text in the ITB
mentions the BDS clauses if specific information or requirements are needed to complete the
instructions. All BDS clauses are numbered to match corresponding or mother clauses in the ITB.
3.3.4.1 Read and understand clause(s) in Instructions to Bidders corresponding to the required data
sheet information. This is very important because the Data Sheet wording itself is not
intuitive, that is, it is difficult to figure out what it means without referring to the “mother”
clause. This will help ensure that time is not spent pursuing the wrong answers.
3.3.4.2 Consider whether ITB and standard data sheet clauses will adequately represent the
procurement to be undertaken. Additional clauses may be included, so long as they do not
contradict the PPR 2014.
 3.3.4.3 Fill in all known information, for example, the name of the purchaser.
3.3.4.4 Make a list of information still needed to complete the data sheet (referenced by clause
number).
3.3.4.5 Consider where/ how missing information can be found; for example, program decision,
earlier bidding document, line director, calculation, consultant, pecification, etc.
3.3.4.6 Pursue and coordinate the necessary decisions, including—
 price of bidding documents
 amounts of bid security
 amount of performance guarantee
 whether or not samples are required
 date and time for pre-bid meeting, if required
 bid opening date and time, bid validity requirement
 bid currency and bid language
3.3.4.7 Specify Eligibility Criteria and Documents Required
Eligibility requirements, for the most part, are based on whether or not a firm has been blacklisted.
Documentation requirements should confirm the firm is not on the lists of blacklisted firms. (Rule
21of PPR 2014)
In accordance with (Rule 21of PPR 2014), all interested bidders, national or international, firms and
individuals, shall be allowed to bid for any project where international competitive bidding is
adopted. However, competition may be restricted if, as a matter of law, the bidder prohibits country
commercial relations; or a firm is blacklisted or debarred by the procuring agency and the matter has
been reported to the Punjab PPRA. Eligibility requirements are primarily based on whether or not
a firm has been blacklisted.
On the BDS, determine and list any criteria for eligibility, in addition to those already listed in the
ITB.
3.3.4.8 For health sector documents, to conform to the bidding document requirements and
registration with the Drugs Regulatory Authority (DRAP) of Pakistan, use the appropriate
wording for BDS clauses about procurement-specific documentation.
3.3.5 Specify Evaluation Criteria and Documents Required
3.3.5.1 Determine criteria that will be used to evaluate and compare bids under Rules 31-32 of PPR
2014 (in addition to what has already been mentioned in the ITB), and list it on the Bid Data Sheet.
3.3.5.2 If criteria are used, in addition to price, insert the information for the bidder on how the
non-financial items will be evaluated.
3.3.5.3 Include details for the scoring system, if it will apply for a technical evaluation. It is at the
discretion of the procuring agency to develop specific criteria that will be used to decide whether
or not a bidder is qualified for a contract award. For example, for production capacity, the
procuring agency defines exactly how much capacity it considers adequate, based on quantity and
delivery time requirements for the subject procurement; including the documentary evidence that
the bidder should submit.
3.3.5.4 Determine and list documentary evidence that bidders should submit to establish or
 confirm their qualifications.
3.3.5.5 Defining evidence to support specific criteria is not as clear as defining the requirement
itself. The purchaser may ask the bidder for a sworn statement of its installed manufacturing
capacity, and its peak and average production during the past three years. But, during the
evaluation, other details and documents submitted with the bid will be used to corroborate the
bidder’s claims. The firm’s financial information and audited financial statements, details of
current commitments and contracts completed during the past several years, and the bidder’s
explicit permission for the purchaser to contact business and banking references, will all be
considered.
3.3.6 Specify Any Additional Documents Comprising the Bid
The ITB specifies what documents will comprise the bid, but also gives the procuring agency a chance to
include more in this list through the respective BDS.
3.3.7 BDS Completion
Enter the products of Steps 3.3.4 to 3.3.6 above into the appropriate clauses of the BDS. Delete all
guidance notes and unused options. This is frequently overlooked and creates confusion about the
actual requirements.
3.3.8 Begin Drafting Special Conditions of Contract (SCC)
The SCC modifies and augments information and requirements printed in the GCC. Whenever
specific information or requirements are needed in the SCC to complete the contract conditions, this
is noted in the text of the GCC the same way the ITB and BDS clauses are cross-referenced.
3.3.8.1 Read and understand the clause(s) in the appropriate version of the GCC that corresponds
to the SCC requiring completion. This is very important because the wording of the SCC, alone,
is not intuitive; that is, it is difficult to determine what is meant without referring to the mother
clauses. Reading carefully will help ensure that time is not wasted pursuing the wrong answers.
3.3.8.2 Consider whether the GCC and standard SCC clauses adequately represent the procurement
contract desired. Additional clauses may be included, so long as they do not contradict the standard
GCC clauses or the prevailing procurement rules i.e. PPR 2014.
3.3.8.3 Fill in all known information. For example, the type of medicines to be supplied, purchaser’s
name, address, etc.
3.3.8.4 List the information and the decisions still needed to complete the SCC/PCC (referenced
by clause number).
3.3.8.5 Consider possible sources for missing information. For example, from the “Director
General”, “earlier bidding document”, “line director”, “consultant”, “specification”, “PPR 2014” or
PPRA Act, 2009.
3.3.8.6 Pursue and coordinate necessary decisions; for example—
 documents that will become part of the contract
 packing, marking, documentation requirements
 method and conditions of payment
 inspections and tests required
3.3.8.7 For international procurement, make a list of resources and capabilities that will be needed
 during execution of the contract. For example, inspection agents, insurance surveyors, testing
facilities, customs clearing services, banking and letter of credit facilities, etc.
3.3.8.8 For international procurements, gather information about local import practices, procedures,
and requirements; for example:
 import licensing
 dockside sampling program
 currency exchange regulations
 customs tariff and taxes
 pro-forma invoice
 product registration
 documentation
 letter of credit (l/c) procedures
 enter Specifics for Certification of Goods Clause
3.3.8.9 Pharmaceutical products require registration with the Drugs Regulatory Authority of
Pakistan, usually, contracts cannot become effective until this is complete. Details of registration
requirements should be included in the special conditions of contract.
3.3.10 Enter Specifics for Inspections and Tests Clauses for International Procurement
3.3.10.1 Note inspections and tests that will be applicable to the contract. Options include:
 pre-shipment compliance by supplier
 pre-shipment compliance by purchaser
 general dockside sampling and inspection (government import program)
 acceptance testing in Pakistan
Specify inspections and/or tests not otherwise mentioned in the standard documents, and provide
a cross reference to corresponding requirements in Schedule of Requirements and Technical
Specifications.
Pre-shipment inspection and sampling is conducted at the manufacturer’s facility and testing, if
required, is done at an independent laboratory before shipment. An independent laboratory
meeting all the international standards prescribed by WHO for testing of medicines should be
selected. This is called pre-shipment compliance program. It may include all or part of the following:
 documentary review
 inspection at the manufacturer’s facility
 sampling
 testing at an independent laboratory
Pre-shipment compliance programs insure that safe, good quality products reach the end users
and eliminate the time and trouble involved in returning medicines, and waiting for another
shipment when sub-standard or incorrect medicines are detected.
In cases where timely receipt of medicines is critical to program operations, pre-shipment
compliance programs are very important.
3.3.10.2 Enter Specifics for Packing, Marking and Package Documents Clauses
 List requirements, in addition to the GCC and provide a cross-reference to corresponding
requirements in Schedule of Requirements and Technical Specifications. For example, you may want
certain information printed on the outside of the packing boxes in order to facilitate warehousing and
distribution, or there may be a requirement to pack medicines so they remain below a certain
temperature, as is the case with vaccines.
3.3.11 Enter Specifics for Delivery Documents to be Furnished by Supplier
3.3.11.1 Determine and list documents that will be required. Possibilities include:
 commercial invoice
 packing list
Determine and list documents that will be required to establish the product’s conformity to basic
specifications. (Required items should also be mentioned in the corresponding specification.) For
example:
 certificate of analysis
 QA records
3.3.11.2 State the number of originals and number of copies required for each document.
3.3.12 Complete the Remaining SCC Clauses
Ensure that all required entries have been made and the treatment of each issue in the SCC is
consistent with the wording in the corresponding BDS, Schedule of Requirements, and Technical
Specifications.
3.3.13 Construct the Invitation for Bids (IFB) T
Using information in the completed Bid Data Sheet, Special Conditions of Contract, Specifications and
Schedule of Requirements, prepare the Invitation for Bids by following the format and directions
provided in the SBDs See Annexure 9 for sample IFB form.
3.3.14 Compile Draft Bidding Documents Package
Compile the bidding documents in accordance with Chapter V Rules 24 and 25 of PPR 2014. Some of the
remaining sections/information of the bidding document include—
 Invitation for Bid
 ITB
 BDS
 General Conditions of Contract
 Special Conditions of Contract
 Schedule of Requirements
 Technical Specifications
 Eligibility for Provision of Goods
 Forms to be filled out, referenced, or used by the bidder (Bid Form, Price Sheet, Bid Security, etc.)
Apply page numbering and construct a Table of Contents and a Title Page
3.3.15 Submit Draft Bidding Documents for Internal Review
Send draft copies of the bid package to the relevant authorities within DOH, who should:
1. Check the draft against the Procurement Plan
2. Verify authenticity of the requirement of the medicines
3. Investigate any other relevant factors
4. Check to make sure the technical specifications are accurate and have appropriate
detail
5. Make sure any evaluation criteria in addition to price are clearly stated and appropriate for
program needs
Endorse the draft Bidding Documents for onward disposal with or without revision.
3.3.16 Approvals required
Use Standard Procurement Form (SPF) 2 (see annexure 10) to obtain the approval from the relevant
competent authority for the bidding documents, prior to issuing bidding documents or the publication
of any invitation to bid notice.
At the same time, determine the approval for any invitation to bid notice, shortlist, or list of pre-qualified
bidders.
Following are the steps needed to invite bids.
4.1.1 Advertise the Opportunity to Participate in Bidding
As soon as the Relevant Authority approves the draft Bidding Document, the Procurement
Unit must advertise the opportunity for bidding. That is, it must extend a public invitation to
participate in the competition for a contract to all interested firms and parties. This is one of the
essential elements of “open competition”.
Procurements over 100,000 rupees, up to 2 million rupees, must be advertised by timely
notifications on the authority’s website and; possibly, in print media, based on the style and
format prescribed in Rule 12(1) of PPR 2014.
All procurement opportunities over 2 million rupees will be advertised on the authority’s
website, as well as in the newspaper, as prescribed in Rule 12(2) of PPR 2014. Print media
advertisements should be placed in at least two daily national newspapers, one each in Urdu
and English.
1. Prepare a version of the IFB that is suitable for print media.
2. Prepare a version of the IFB that is suitable for website publication. Submit the
advertisement following instructions and using the facilities provided on the appropriate
website.
3. Post notices at the procurement office and on official or public notice boards.
4. For international competitive procurement, also place advertisements in appropriate
international journals, publications, and websites. The World Bank’s Health Sector Bidding
Documents recommends SCRIP - World Pharmaceutical News.
1) For ICB, send notices to foreign embassies and trade missions in Pakistan.
4.1.2 Prepare Bidding Document Sets and a Document Register
Documents must be ready for issue or sale to all interested parties when the advertisement
appears; the bidding documents shall be issued for at least 15 days for NCB; and at least 30
days for ICB. Rule 25(1) of PPR 2014.
4.1.2.1 Determine the number of bidding document sets that should be produced for sale based
on:
 type of goods to be purchased
 approximate number of prospective bidders
 source of goods (national or international)
(a) previous sale of bidding documents for similar goods.
 4.1.2.2 Determine the number of bidding document sets needed for official department
purposes.
4.1.2.3 Prepare sets (copies) of the bidding documents.
All procuring agencies shall host the bidding documents on the authority’s website
and the procuring agency, if the procuring agency has its own website. The bidders
can submit bids on the bidding documents issued by the procuring agency; or they
can download them from the authority’s website, including the tender fee, if there
is one; and submit them by mail or by hand.
4.1.2.4 Set up a register to record all bidding document sets that are prepared for the package.
Number the documents so that each set can be accounted for when the bidding
process is complete.
4.1.3 Prepare Systems for Safeguarding Bids, Cash and Securities
4.1.3.1 Designate a secure location to hold unopened bids until the stated day and time of
the bid opening; for example, store them in a locked cabinet.
4.1.3.2 Develop a system for handling funds collected from prospective bidders for the
cost of the bidding documents.
4.1.3.3 Set up a system for safeguarding securities after the bids are opened.
4.1.4 Availability of Bidding Documents to Bidders
4.1.4.1 Ensure the bidding documents for procurement of medicines and supplies are
available for the procurement unit. The price should be minimal and should only
reflect the cost of printing and providing the documents. Rule 25(7) of PPR 2014
4.1.4.2 Use the register mentioned in 4.1.2.4 above to record the name, address and
document number of each purchaser so they can be informed about any pre-bid
conferences, amendments to the documents, or other official business.
4.1.4.3 Use the register mentioned in 4.1.2.4 above to record the name, address and
document number of the sets forwarded at no cost to official sources.
4.1.4.4 Give the Bidders receipts with their name, address date and time.

Pre-bid conferences of prospective suppliers are held for international and important local procurements
when it is thought necessary. At a pre-bid conference, potential bidders’ questions are answered and
minutes are recorded and sent to each recipient of the original bidding documents in sufficient time
before the deadline for receipt of bids to enable bidders to take appropriate actions.
In a competitive situation, these conferences can become difficult to control. So it is very important to
set a firm agenda and make an advance plan for managing the flow of questions and answers. Bidding
documents may need to be amended as a result of questions asked by registered participants. Procedural
errors during the conference or in writing or distributing the minutes can result in official protests by
competing bidders. Any protest is likely to delay the procurement.
4.2.1 Arrange the Pre-Bid Conference
Any pre-bid conference should take place well ahead of the bid opening date. The concerned director
should determine a convenient place and time for the conference. The room must be large enough to
hold at least:
 two representatives from every intending and prospective bidder.
 all officers and directors who had a major role in developing or approving the draft bidding
documents. these individuals may be organized into a bidding document finalization committee.
 appropriate procurement unit staff and their director(s).
4.2.2 Notify Prospective Bidders
Notify the prospective bidders about the conference when they purchase the bidding documents. All
prospective bidders should receive this notice, including the last one to purchase them before the pre-
bid conference.
4.2.3 Hold the Pre-Bid Conference
4.2.3.1 Register participants and generate an attendance list, including titles and contact
information. Limit attendance to parties who have purchased bidding documents.
4.2.3.2 Record the minutes following the sample given in Annexure 11.
4.2.3.3 Refer questions and concerns that cannot be answered at the conference to technical
experts immediately. A sample reference letter is shown as Annexure 12.
4.2.3.4 Forward replies (per 4.2.3.3 above) to registered participants and all registered bidders as
soon as they are received using the sample format shown in Annexure 13.
4.2.3.5 If necessary, extend the bid submission period and/or amend the bidding documents
based on the answer to the questions asked during the pre-bid conference.
4.2.4 Circulate the Minutes and/or Outcome of Pre-bid Conference
4.2.4.1 Send the minutes and other related information to all prospective bidders, including those
who purchased Bidding Documents after the pre-bid conference.
4.2.4.2 Send a copy of the conference minutes to the end-user office.
4.2.5 Extend the Bid Submission Deadline if Necessary (Rule 29 of PPR 2014)
4.2.5.1 Notify prospective bidders if the bid submission deadline is extended. Use the sample
format of notification shown in Annexure14.
4.2.5.2 The advertisement of an extension shall be made in a time and manner similar to the
original advertisement.
4.2.6 Receiving and Managing Bids
4.2.6.1 Bids must be held unopened until the stated day and time of bid opening. The bids can
be dropped in a safe box under safe custody of the purchasing unit.
4.2.6.2 Bid envelopes must be stamped with the date and time they are received.
4.2.6.3 Except for questions and answers in writing to/from procurement, no one associated
with the procurement is permitted to communicate with bidders regarding the bid from
the time the advertisement appears until after an award has been made.
The procedure described in this manual is a single-stage two-envelope bidding process, which is
commonly used to procure goods under Rule-38(2)(2) of PPR 2014. The rule states:
(i) the bid shall be a single package consisting of two separate envelopes, containing
separately the financial and the technical proposals
(ii) the envelopes shall be marked as “Financial Proposal” and “Technical Proposal”;
(iii) in the first instance, the “Technical Proposal” shall be opened and the envelope
marked as“ Financial Proposal” shall be retained unopened in the custody of the
procuring agency;
(iv) the procuring agency shall evaluate the technical proposal in the manner prescribed in
advance, without reference to the price and shall reject any proposal which does not
conform to the specified requirements;
(v) during the technical evaluation no amendments in the technical proposal shall be
permitted;
(vi) after the evaluation and approval of the technical proposals, the procuring agency shall
open the financial proposals of the technically accepted bids, publically at a time, date
and venue announced and communicated to the bidders in advance, within the bid
validity period;
(vii) the financial bids found technically nonresponsive shall be returned un-opened to the
respective bidders; and
(viii) the lowest evaluated bidder shall be awarded the contract.
The bid opening, evaluation and selection of a winning bidder is governed by the Rules 23 to 35 of PPR
2014.

Bids must be opened publicly at the time specified in the bidding documents. Bidders may
attend the opening, but it is not mandatory. Rule 30 of PPR 2014 states the following:
1. The date for opening bids and the last date for the submission of bids shall be the same,
as stated in the bidding documents and in the Notice Inviting Tender.
2. The bids shall be opened within one hour of the deadline for the submission of bids.
3. All bids shall be opened publicly in the presence of all the bidders, or their representatives,
who are present in person, at the time and place announced in the invitation to bid.
4. The procuring agency shall read aloud the name of the bidder and the total amount of
each bid; any alternative bids, if they have been permitted, shall be read aloud and recorded
when opened.
5. All bidders in attendance must sign an attendance sheet.
 6. All bids submitted after the time prescribed, as well as those not opened and read at the
bid opening because of any procedural flaw, shall not be considered; they shall be returned
without being opened.
7. The official chairing procurement committee shall circle the rates and all the members of
procurement committee shall sign each and every page of the financial proposal.
8. The procurement committee shall issue the minutes of the opening of the tenders and
shall also mention overwriting or cutting, if any.
5.2.1 Organize the Bid Opening (Officers of Procuring Agency)
5.2.1.1 At least seven days before the bid opening, use the format in annexure 15 to notify all
members of the procurement committee.
5.2.1.2 Arrange the area for bid opening, as specified in the bidding documents. Ensure that
it is well lighted, large enough to accommodate at least two people from each bidding
firm, and has audio capabilities, if required.
5.2.1.3 Hold all bids unopened and secure until the date and hour designated in the bidding
documents.
5.2.2 Record Bid Submissions (Officers of Procuring Agency)
As bids arrive:
 Provide receipts
 Record the bidder name and the submission date. (Bids received after the exact deadline will
not be opened.)
5.2.3 Hold Bid Opening (Procurement Committee)
On the date and at the time and place specified on the bidding documents:
5.2.3.1 Admit Participants:
 authorized bidders
 others directly involved with the subject procurement; for example, consultants hired for
the purpose.
5.2.3.2 Require that each attendee registers his/her presence in an Attendance Register/Sheet
provided for that purpose (Rule 30(3) of PPR 2014), and to include:
 name, address
 company, manufacturer, representative
 organizational affiliation (if not bidder)
 signature.
All members of the procurement committee must countersign the attendance register.
5.2.3.3 The procurement committee shall count and initial all envelopes that contain bids The
names of bidders who have withdrawn their bids shall be announced.
5.2.3.4 Bids received by or before the deadline will be opened, one at a time, and read aloud:
 bidder’s name and local agent’s name, if different
  bidder’s city/state or province/country
 withdrawal or modifications, if any
 quoted items.
All financial bids should be kept unopened and sealed, in a box. The financial bid envelopes of
technically qualified bidders will be opened after the technical evaluation is completed.
5.2.3.3 Record any samples received if required in SBDs of DOH Punjab for technical evaluation
with the bid on a Record of Samples Received form. See Annexure 16 for a sample form
for recording samples received.
5.2.3.4 Do not open the bids received after the deadline for the receipt of bids. These bids
must be returned, unopened, to the bidder. Rule 30(4) of PPR 2014.
5.2.4 Record and Distribute Details (Procurement Committee)
5.2.4.1 As each bid is read, complete a Bid Opening Checklist— see annexure 17 for a sample.
If a bid was received on time, it may not be eliminated at this stage, even if something
appears to be missing or incorrect.
5.2.4.2 Record the details of the bid on a Bid Opening Sheet (BOS), or Record of Bid Opening
similar to Annexure 18.
5.2.4.3 Require all members of the procurement committee and the bidders, or their
representatives who attend the bid opening, to sign the BOS/Record of Bid Opening
at the completion of the opening.

The steps above are a summary of the key activities to be performed for a bid opening.
Note
After the public bid opening and report, there should be no further verbal contact with bidders
until the winner is identified and notified. No circumstances justify meetings or conversations
between the purchaser and bidders during the evaluation process.

5.3.1 Punjab Procurement Rules, 2014 do not put any limit on number of tenders/ bids received in
response to tender notices provided that the procurement opportunity has been advertised in the
prescribed manner. The single bid may be considered if it meets the evaluation criteria expressed
in tender notice and is not in conflict with any other rules, regulations or policy of the Punjab
Government. However, the procuring agency should make a decision with due diligence and in
the light of Rule 4 of PPR 2014.
5.3.2 Whenever a procuring agency is confronted with such a situation whereby the rate quoted by the
single bidder cannot be compared so as to declare it as the lowest rate or otherwise it may make
a prudent decision. While making a decision, the following factors may be kept in view: -
(a) The comparison of price of the goods/contraceptives if procured during the current financial
 year.
(b) Market price of the goods / contraceptives to be procured.
(c) In case abnormal Increase in prices is observed, the procuring agency may like to re-advertise
the procurement opportunity, if time permits

Rule 32 of PPR 2014 which states that: “All bids shall be evaluated in accordance with the evaluation criteria and
other terms and conditions set forth in the prescribed bidding documents.”
The Rule 32 of PPR 2014 does not define a specific evaluation procedure, or offer a step-by-step format
for selecting a winning bid; but the Department of Health may establish a Merit Point Average
Evaluation Methodology scoring system in the “Standard Bidding Documents for procurement of
medicines and supplies,” which can be used to evaluate bids. This scoring system assigns points to
criteria established for evaluating the bids received.
The information presented in this Chapter follows a process where Standard Bid Evaluation Forms (SBEF)
are used to conduct a thorough bid evaluation. The Bid Evaluation Committee can continue use the Merit
Point Average Evaluation Methodology scoring system developed by the Department of Health for bid
evaluation, and consider using SBEF documents when they would help to strengthen the process by
providing additional evaluation criteria.
5.4.1 Standard Bid Evaluation Form (SBEF) Documents
The SBEF provides tables and forms designed to help the Bid Evaluation Committee examine and
evaluate each bid submission and arrive at a winning bid based on a fair application of the rules,
procedures and requirements set down in the bidding documents. This Chapter will use the SBEF
documents to explain the bid opening, evaluation and award stages for procurement of medicines and
supplies.

5.5.1 Fill out SBEF Tables 1-3

5.5.1.1 Fill out SBEF Table 1, Identification (see Annexure19). It requires very basic information
about the subject procurement package, most of which can be found in the approved
Procurement Plan, including the original cost estimate. The remaining information is
located in the Bidding document.
5.5.1.2 Fill out SBEF Table 2, Bidding Process (see Annexure 20) with basic information about
the bidding process, which includes publication dates, title of bidding documents, and
amendment dates.
5.5.1.3 Fill out SBEF Table 3, Bid Submission and Opening (see Annexure 21) with information
about the bid submission and opening which includes deadline and opening dates, bid
validity period and number of bids received.
5.5.2 Hold the financial bid envelopes unopened in a box to be opened at a later date, after the
technical evaluation process.
5.5.3 Complete the Bid Opening Checklist for Each Bid
5.5.3.1 Enter any incomplete information. For example, descriptions at bid opening may need
to be elaborated further. (see Annexure 17)
 5.5.3.2 Verify information recorded at bid opening.
5.5.4 Check Copies and Secure Bid Originals
5.5.4.1 Compare each copy of each bid with its original and correct accordingly, if necessary.
5.5.4.2 Confirm that signatures on each original are present as required.
5.5.4.3 Keep originals in a safe location and use copies for evaluation work.
5.5.5 Review Original Bidding Documents
To evaluate a bid, you must know what to evaluate; that information comes from the original bidding
documents. The Bid Evaluation Committee should—
5.5.5.1 Thoroughly review the original Bidding Document issued for the procurement.
5.5.5.2 To understand what each bid should agree to or offer, particularly note entries in the
BDS and Special Conditions of Contract, as well as the Schedule of Requirements.

The examination outlined in SBEF Annexure 22: Table 4 is used by the Bid Evaluation Committee to
identify and reject incomplete, invalid, or substantially non-responsive bids. Only bids that pass this
phase can be financially evaluated and compared with other bids.
Review Preliminary Examination Form (SBEF Table 4)
SBEF Table 4 is a summary record showing how each bid for a goods / medicines contract is
substantially responsive or substantially non-responsive to the bidding documents. It includes columns
for recording the bidder’s name, verification information, and eligibility information, completeness of bid,
substantial responsiveness, and acceptance for detailed examination. Additional columns can be added as
necessary. In most cases, they will be required for responsiveness to technical specifications and
commercial conditions.
To record details of each bid’s responsiveness or non-responsiveness in that category, each column
of table 4 (except the bidder’s name) must include at least one supplementary checklist or schedule.
These supplementary checklists must reflect the exact requirements, terms, and conditions of the
original bidding documents. The following sections explain how to complete the supplementary
checklists for SBEF Table 4 columns.
5.6.1 Undertake Verification Exercise: Table 4 - column b
Annexure 23 is a sample checklist for column b of Table 4 for examining details of verification issues.
Real bidding documents will include additional issues that must be examined during the verification
exercise. The BEC should:
5.6.2 Review bidding documents for items in this category to be checked; prepare a
checklist.
Examine all bids and note deficiencies that, if accepted, would give an unfair advantage to the bidder.
Significant judgment must be used to distinguish between a material deviation from the verification
requirements and a minor deviation from the requirements to ensure that a bid is not eliminated for a
minor deviation. For example, simple omissions or mistakes from human error should not be grounds
for rejecting the bid. However, the validity of the bid—for example, its signature—must not be in
question.
Note: See section 5.6.8.1 for a definition of material deviation and more information on
considering a bid substantially responsive.
5.6.1.1 Do not consider any information contained in a bid submission that was not
specifically requested in the bidding document.

5.6.3 Assess Eligibility of Bidder: Table 4 - column c

Annexure 24 is a sample checklist for examining details of eligibility issues. Real bidding documents
will include additional issues that should be addressed during the eligibility examination. The BEC should
do the following:
5.6.3.1 Review bidding documents for items to be checked in this category and prepare a list.
5.6.3.2 Check the department website or any other reliable website for a list of debarred firms.
5.6.3.3 Confirm the eligibility of each bidder and the goods offered.
a. If pre-qualification has taken place, only bids from pre-qualified bidders should be
considered.
b. A bidder may be disqualified if it has been placed on a debarment list by the
Government.
5.6.4 Examine Bids for Completeness: Table 4 - column d
Annexure 25 is a sample checklist for column e of SBEF Table 4 for recording details about the
completeness of the bid. Real bidding documents will include additional issues that should be
addressed during the bid completeness examination.
5.6.3.1 Review bidding documents for items to be checked in this category and prepare a list.
5.6.3.2 Review the bids and note if any are incomplete or if they deviate from the original
documents.
a. Unless the bidding documents have specifically allowed bidders to quote for
only select items or for only partial quantities of an item, bids not offering all of
the required items (both type and quantity) will ordinarily be considered non-
responsive. This decision requires significant judgment.
b. Changes or additions to the bidding document by the bidder are usually treated
as deviations, but may be acceptable if they are simply corrective, editorial or
explanatory. This also requires significant judgment.
5.6.5 Examine Bids for Commercial Responsiveness (sub-schedule for Table 4 - column e)
Annexure 26 is a sample sub-schedule for SBEF table 4 (column e); it is used to examine details of the
commercial responsiveness. Real bidding documents may include additional issues that should be
addressed during the commercial responsiveness examination. Deviations specified in the bidding
documents (Instructions to Bidders section) that require rejection of the bid must be listed.
5.6.6 Refer Bids for Technical Evaluation
List each bid and indicate if it will be accepted for detailed evaluation, based on the results of the
examination. If a bid fails acceptance, the reasons must be clearly explained in footnotes or in an
attachment. Indicate the table 4 column number and schedule where the bid failed to meet
requirements.
Soon after the bids are opened, a technical expert or a technical evaluation sub-committee should be
assigned to examine the bids for technical content. Although it is not listed on the table 4 headings,
the technical evaluation is a critical part of determining a bid’s responsiveness to the requirements,
and whether or not it can proceed to the next stage—financial evaluation and comparison..
5.6.6.1 Examine each bid for modifications, exceptions and interlineations (notations written
between the lines of the original bidding documents) regarding:
a. Compliance with technical specifications provided in the bidding documents.
5.6.6.2 Compliance with general and Special Conditions of Contract included in bidding
documents that are related to technical specifications. For example, contract
requirements for pre-shipment inspection, sampling and testing.
5.6.6.3 List and cross-reference deviations from bidding documents and indicate whether or not
they are acceptable or unacceptable along with the reasons.
5.6.6.4 For each bid record and document findings regarding compliance with technical
specifications. See Annexure 27 for a sample Technical Evaluation Sub-schedule for
recording technical evaluation findings. A list of the actual technical specifications must
be incorporated into this schedule.
5.6.6.5 If bidders are required to submit samples for inspection and/or testing, it is the
procurement unit’s responsibility to facilitate arrangements for any necessary testing to
be done at a qualified government testing laboratory or at a pre-qualified independent
testing laboratory and obtain written reports.
Note on Testing
Testing is sometimes restricted to samples from several prospective suppliers with the lowest substantially
responsive bids, but may also be reserved for bids from new or previously unreliable suppliers. In this
case, testing would be delayed until the financial evaluation is complete.
Testing samples submitted with bids are not appropriate for health sector goods, such as medicines and
vaccines, because this will not assure the quality of a product batch to be produced in the future.
5.6.6.6 Summarize findings and provide overall comments on the technical evaluation. A sample
summary table for recording information about the technical evaluation may be found in
Annexure 29. A list of the actual technical specifications must be incorporated into this
schedule.
5.6.7 Obtain and Review Technical Evaluation Report
The technical expert, or committee, indicates whether or not the bid is technically acceptable (see
Annexure 27, 28 and 29). The bid committee notes this determination in its evaluation report.
5.6.8 Identify Substantially Responsive Bids: (Table 4 - column f)
Review the technical evaluation report and the findings from the other sub-schedule evaluations
of SBEF Table 4 and determine whether or not each bid is substantially responsive to the
requirements terms and conditions stated in the Bidding documents.
Note
This step requires significant judgment and extreme care. The procuring entity may regard a bid as
responsive, even if it contains minor deviations.
Bids that are determined to be “not substantially responsive” cannot be considered further (in other words,
they will not be evaluated on the basis of price). Major deviations from the commercial requirements (5.6.5
above) and technical specifications (5.6.7 above) are a basis for the rejection of bids. Bidders are not
allowed to correct or withdraw material deviations or reservations after bids have been opened.
Definitions
A bid is considered substantially responsive when it is presented in the required manner and appears
to include all required information, samples, statements, securities, signatures, forms and
supporting documentation, and contains no material deviations from or reservations to the terms,
conditions, and specifications in the bidding documents.
A material deviation is a significant and unacceptable difference from the requirements stated in the
bidding documents. As a general rule, major (or material) deviations are those that, if accepted,
would not fulfill the purposes for which the bid is requested, or would prevent a fair comparison with
bids that are properly compliant with the bidding documents.
A material (or major) deviation affects the price, quantity, quality, or delivery of the goods as required
in the bid documents, or limits the responsibilities, duties, or liabilities of the bidder, or any rights of
the purchaser.
However, bids that offer deviations may be considered substantially responsive—at least as to the issue
of fairness—if the deviations can be assigned a monetary value that would be added as a penalty during
the financial evaluation process and if such deviations would be acceptable in the eventual contract.
This determination requires significant judgment and extreme care. Bids that are judged
“substantially non-responsive” must be rejected without further consideration.
5.6.9 Accept Bids for Financial Examination (Table 4 - column g)
5.6.9.1 After the evaluation and approval of the technical proposal the procuring agency, shall at
a time within the bid validity period, publicly open only the financial proposals of the
technically accepted bids. The financial proposal of bids found technically non-
responsive shall be returned un-opened to the respective bidders.
The financial proposals of bidders proceeding to the financial evaluation are opened
publicly at a separate bid opening meeting, at a date and time notified to the bidders
whose technical proposals have been evaluated and accepted after the technical
evaluation. Total prices quoted, together with all itemized unit prices, together with the
technical scores awarded to bidders in the technical evaluation, are read out and recorded.

For each bid that survives the examination stage, the BEC must arrive at an “evaluated cost”.
SBEF Tables 5-6 helps to insure a fair comparison among all the offers. Subject to post-
qualification, the bid with the lowest “evaluated cost,” but not necessarily the lowest submitted price,
must be chosen for award.
 The “evaluated cost” is not necessarily the submitted price; it takes corrections and discounts into
consideration. Bidding documents must list factors to be considered, in addition to price, and describe
the manner in which they will be applied.
5.7.1 Complete SBEF Table 5 - Bid Prices as Read Out (See Annexure30)
5.7.2 Calculate Corrections and Unconditional Discounts (SBEF Table 6)
The procurement committee should use Table 6 (see Annexure 31) to incorporate corrections and
unconditional discounts in the calculation for an “evaluated cost”.
5.7.2.1 Corrections for Errors: For each bid, multiply the unit price by the quantity. If the answer
does not match the totals or sub-totals mentioned in the bid, the difference should be
entered as a plus or minus in column “d”. In other words, the stated unit price prevails.
If there is a discrepancy between words and figures, the amount in words prevails.
Corrections are considered binding on the bidder. Unusual or large corrections that could
affect the comparative ranking of bids should be explained in footnotes.
5.7.2.2 Modifications and Unconditional Discounts: Bidders are allowed to modify their bids
prior to opening. These modifications may include either increases or discounts to the
bid amounts that reflect last minute business decisions. Enter any modification or
unconditional discount that is not reflected in the read-out bid price into columns g and
h.
5.7.2.3 Corrected/Discounted Bid Price(s): Table 6, column “i” shows how to calculate this
important figure. .
5.7.3 Assemble Summary Ranking of Financial Evaluation
For clarity and convenience, developed a summary ranking of the financial evaluation of technically
responsive bids; list the bidders and their total bid price. A revised schedule may be needed if domestic
preference or cross discounts change the ranking.

Bid securities in a fixed amount of 1 percent to 5 percent of the bid price under Rule 27 of PPR 2014
(specified in BDS) are submitted with bids from both local and international bidders. See annexure 32
for a sample Bid Security Checklist. The bidding documents will state which form(s) of bid security can
be accepted.
Generally accepted securities include:
• Pay Order
• Bank Draft
No cash money is allowed.
5.8.1 Safeguard and Record Bid Securities
5.8.1.1 Segregate bid securities soon after the financial bids are opened.
 5.8.1.2 Hold bid securities in a locked, secure location until a contract has been awarded.
5.8.1.3 Record each bid security in the register set up for this purpose.
5.8.2 Confirm Bid Securities
Confirm the validity of all bid securities within 15 days after the bid opening.
5.8.2.1 Confirm bid securities issued by banks within Pakistan (local issuing banks) through using
any legal source preferably, , go to the bank and speak with a bank officer.

If pre-qualification was conducted, the bidder whose bid is the “lowest evaluated” should receive the
award unless:

• Bidder’s qualifications have since materially deteriorated.

The Purchaser must satisfy itself fully on following accounts.

• Examine the updated information submitted by the “lowest evaluated” bidder and
determine if it still meets the original pre-qualification criteria. Seek clarification or updates
from the bidder as required.
• If the “lowest evaluated” bidder is still qualified, include this information in the evaluation
report.
If pre-qualification was not conducted, the lowest evaluated bidder must be post-qualified using the
requirements mentioned in the bidding documents.
5.9.1 Develop a Bidder’s Qualification Worksheet
5.9.1.1 To facilitate the qualification process, develop a bidder’s qualification worksheet based
on qualification criteria announced in the bidding documents. See section 3.3.6 for an
example of bidder qualification criteria that can be used for a worksheet.
5.9.2 Examine Documents and Statements
5.9.2.1 Examine the documents and statements provided by bidder with regard to qualification
criteria announced in the bidding documents.
5.9.2.2 Record findings on the worksheet.
5.9.3 Check References
To verify statements and obtain information on past performance and financial standing, contact
reference persons and institutions provided by the bidder.
5.9.4 Determine Qualification Status
5.9.4.1 Determine if the lowest evaluated bidder satisfies all qualification criteria.
5.9.4.2 If the lowest evaluated bidder fails post-qualification, its bid should be rejected, and the
next ranked bidder should then be subject to the same post-qualification examination. If
successful, award this bidder. The procuring agency shall award the contract within
the original or extended bid validity period.
5.9.4.3 If a bidder fails post-qualification, the justification must be clearly explained and
 documented in attachments to the bid evaluation report. A history of poor performance
may be considered adequate justification.

The contract is important because once it is signed it becomes the legally binding document between the
purchaser and the seller that identifies:

• product specifications
• delivery requirements
• performance obligations of both parties
• legal recourse for the parties involved in case of lack of performance or disputes.
Contract preparation for competitive bidding occurs during the process of developing the bidding
documents when product specifications, delivery requirements, general and special contract conditions
and Quality Assurance requirements specific to the medicines and supplies are assembled. While this can
be a complex preparation process, the bidding documents provide the bidder with all the pertinent
contract information and requirements so that at contract award time, the contract is basically in place
and the winning bidder has only to sign the contract agreement form.
The documents that typically are included in the contract include:
 form of contract
 BDS and the price schedule submitted by the bidder
 Schedule of Requirements (offered by the bidder and accepted by the purchaser)
 technical specifications (offered by the bidder and accepted by the purchaser)
 General Conditions of Contract
 Special Conditions of Contract (duly filled in)
(i) Performance Security submitted by the bidder.
The purchaser should review the assembled contract documents to ensure that key
requirements and contract provisions from the following categories are included in the contract as
needed:

• product requirements
• delivery requirements
• certification requirements
• inspection and testing rights
• payment terms
• special qa conditions appropriate to the commodity
• warranty clauses
• termination clauses
 • remedy clauses

5.11.1 Prepare a Bid Evaluation Report

5.11.1.1 The procurement committee prepares a bid evaluation report that provides
information documenting the bid opening process, the preliminary bid examination,
the technical evaluation and the financial evaluation. See Annexure 34 for a sample
Bid Evaluation Report. Evaluation Report format available at Punjab PRA website
http://ppra.punjab.gov.pk can also be used.
5.11.1.2 Attach notes of explanation for any extraordinary factors such as prices higher than
estimated, lower than expected, only one bid submitted, etc.
5.11.1.3 Recommend the lowest evaluated, qualified bidder for award.
5.11.1.4 Sign the evaluation report - that is, each member must sign with their name and
designation clearly stated.
5.11.1.5 If any member of the procurement committee disagrees with any part of the
evaluation recommended by the procurement committee, they can write a note of
dissent describing their reasons, in detail.
5.11.2 Submit Report to the Approving Authority
Submit the evaluation report along with recommendations for award and any note of dissent, if any,
to the approving authority. See Annexure 35 for a sample Request for Evaluation Report Approval
form and Annexure 36 for a Recommendation for Contract Award form.

5.12.1 The award recommendation must be formally approved by the appropriate approving authority.
(Rules 11 and 63 of PPR 2014)
5.12.2 After reviewing the Bid Evaluation Report Summary and confirming that the bid evaluation
process has been properly adhered to and the award recommendation is consistent with a fair
and equitable bid evaluation process as documented by the Bid Evaluation Report Summary, the
approving authority is bound to approve the award recommendation in a prompt manner.
By promptly approving award recommendations that are based on a fair and equitable bid
evaluation process, the approving authority helps to:
 Increase the confidence of bidders in the Government of Punjab procurement process
which encourages bidders to compete for Government of Punjab contracts, thereby
increasing competition which can lead to reduced product prices.
 Reduce the number of protests filed by Bidders when they believe that the approving authority
made an arbitrary decision not based on the bid evaluation process and that, as a result,
their bid did not receive fair and equal consideration in accordance with Rule 4 of PPR2014,
 Ensure the contract is awarded to the manufacturer in a timely manner to support the
product delivery schedule.
5.12.3 If the Approving authority determines that the bid evaluation process as documented by the Bid
Evaluation Report summary was not conducted in a fair and equitable manner, then it may:
a. Ask the procurement committee for any clarification required.
b. Reject the Recommendation, clearly documenting in writing the reasons for the rejection,
and request a re-evaluation.
c. Reject the Recommendations, clearly documenting in writing the reasons for the rejection,
and issue instructions to reprocess the procurement in accordance with the PPR 2014.
5.12.4 The decision of the approving authority will be communicated to the Procuring Unit through the
same route in which the request for approval was initially submitted.
5.12.5 After the procuring unit receives the approval, the Notification of Award (NOA) under Rule-55
of PPR 2014 for the procurement contract must be issued, provided no complaint or appeal is
pending against the bidder. .

Under Rule 37 of PPR 2014, the procuring agency must announce the results of the bid evaluation in
a report, including the justification for acceptance or rejection of bids. The report shall be hosted on
the website of the authority, and that of the procuring agency, if it has a website. All bidders must be
notified at least seven days prior to the contract award.

If justified by exceptional circumstances under Rule-29 of PPR 2014, a procuring unit may request a bidder
to extend the validity period of its bid, which cannot be longer than the original period of bid validity.
Bidders are not obliged to agree to such requests. However, if a bidder agrees, it must be in writing
and must confirm the new date for the expiry of bids requested by the procuring entity. If the bidder
has submitted bid security, the bid security must also be extended.

If any bidder should feel that they have not received fair and impartial treatment after submitting
their bid, they may file a written complaint in accordance with Rule 67 of PPR 2014, no later than 10 days after
the announcement of the bid evaluation report.
The Grievance Committee shall review the grievance and make a decision within 15 days of receipt of
the complaint. Lodging a complaint by a bidder does not automatically warrant suspension of the
bidding process.
After obtaining approval and authorization from the relevant competent authority (see section
5.12.1) the procuring unit takes necessary steps for award.

The procuring agency shall award the procurement contract to the bidder with the lowest evaluated
cost within the original or extended bid validity period Rule 55 of PR 2014.
The procuring agency shall notify the successful bidder, in writing, by issuing a letter of acceptance
indicating that its bid has been accepted; the procuring agency shall also send the bidder the contract
form provided in the bidding documents.
Note: The procuring agency shall ensure the bid evaluation report has been hosted on the website
of PPRA at least seven days prior to issuing the notification of acceptance, in compliance with Rule
37 of PR 2014
If only one bid is received, after advertising the bids/tenders in accordance with the rules, the
procuring agency shall ensure that the prices offered by the bidder are comparable to the prices or
rates of the last awarded contract or the market price.

6.2.1 Winning Bidder Submission of Performance Security and Contract Form

6.2.1.1 The successful bidder must submit performance security which should not exceed 10%
of contract value (Rule 56 of PPR 2014) and the signed contract form to the procuring
entity within the deadline mentioned in the original bidding documents. The contract
form binds him to the general and special conditions of the contract and the
specifications contained in the original bidding documents.
a. Usually, the successful bidder goes to the procurement office with their agent,
submits the Performance Security, and signs the contract form as the first party.
Alternately, the successful bidder can send the required Performance Security and
signatures via courier.
b. The person who signs the contract for the successful bidder should sign the bid;
or the person who signed the bid should authorize someone for this purpose, in
writing.
6.2.1.2 If the successful bidder fails to meet the deadline mentioned above, his bid security will
be forfeited. In this case, the procuring agency should award the contract to the second
lowest evaluated bidder.
6.2.2 Confirm Performance Security
As soon as the Performance Security is submitted, the procuring agency must get it
confirmed by the issuing institution (which is usually a commercial bank).
6.2.2.1 Confirm performance securities issued by banks within Pakistan—local issuing
banks—use any legal source; preferably, go to the bank and speak with a bank
officer.
 6.2.2.2 Confirm performance securities issued by banks or other institutions outside of
Pakistan by e-mail, fax, telegram, telex, letter, etc.
6.2.2.3 Confirm performance securities issued by banks outside Pakistan, but that have a
correspondent bank within Pakistan—use any legal source; preferably, go to the
bank and speak with a bank officer.
6.2.3 Sign the Contract on Behalf of Procuring Agency
6.2.3.1 After the successful bidder signs the contract form and provides performance
security, make arrangements for the relevant authority to sign on behalf of Procuring
Agency.
6.2.4 Distribute and Preserve Original Contract
6.2.4.1 Provide one of the two originals of the signed contract form to the supplier.
6.2.4.2 Keep the other original signed contract form, the Performance Security and the bank
confirmation letter in a file under proper security and maintenance.
6.2.5 Distribute Contract Copies
Send a copy of the entire signed contact (form plus conditions and specifications, etc.) to the relevant
authority and subordinate offices for record keeping.
6.2.6 Notify Successful Bidder and Unsuccessful Bidders
Notify the successful bidder and the unsuccessful bidders under Rule 35 of PPR 2009 and return
bid securities to the unsuccessful bidders. Do not take this step until the successful bidder has signed
the contract and provided performance security.
Publication of the award of contract: Within seven days of the award of contract, the procuring
agency shall publish on the website of the authority and on its own website, if there is such a
website, the results of the bidding process; identify the bid using the procurement identifying
number, if any, and the following information:
1. evaluation report
2. form of contract and letter of award
3. bill of quantities or schedule of requirement.

For local procurements follow the payment procedure given in the bidding documents and under Rule-63
of PPR 2014.

It is important for the procurement unit to stay in contact with the manufacturer (supplier) and/or his local
agent during the period of manufacture and shipment.
6.4.1 Set up and Maintain a Contract Monitoring System
1. List responsibilities of the purchaser and of the supplier for contract performance. (See
 Annexure 38 for a sample list of supplier performance responsibilities.)
a. Responsibilities tied to normal execution of the contract, such as arrangements for
inspection, provision of documents, etc.
b. Responsibilities tied to exceptional conditions, such as notification of force
majeure.
2. Evaluate the status of unfinished orders at least once every two weeks.
a. Update the schedule with the actual dates that tasks and responsibilities are finished.
b. Remind the supplier of upcoming deadlines. Ask how things are progressing.
6.4.2 Send Shipping and Marking Instructions
6.4.2.1 Produce a separate set of shipping and marking instructions based on the contract
document and send it to the supplier at least 30 days, but not more than 60 days, before
shipment. This is intended to prevent mistakes by the supplier’s warehouse/shipping
personnel who may not have access to the contract documents. Clear instructions help to
avoid delays.

Contracts for medicines and supplies from international sources may require special pre-shipment
inspection, sampling and testing to verify quality and compliance with specifications before shipping. For
details of Pre-shipment Compliance, see Government of Punjab - Contraceptives Procurement Manual.

6.6.1 Receiving Consignments of Domestic Goods

In case of domestic delivery on Carriage Paid To (CPT) basis, the documents will be copies of:
 commercial invoice
 packing list
 truck receipt
 Certificate of Analysis
6.6.2 Receiving Consignments of Imports
The stores in-charge of the procuring entity will receive the shipment from the clearing agent,
along with copies of the following shipping documents:
a. commercial invoice
b. packing list
c. B/L or airway bill
d. certificate of origin
e. certificate of analysis
f. on board insurance survey report (in case the consignment is cif)
6.6.3 Delivery to Receiving Warehouse
Supplier or clearing agent will arrange for delivery to the respective Warehouse, taking
 all necessary steps to protect the goods.
 refrigeration of perishable products (for example, vaccines and biological products)
 protection from damage due to bad weather conditions
6.6.4 Warehouse Delivery Inspection
Warehouse staff must receive and inspect goods for the following details:
 correct commodity
 shipping/ transportation damage
 special packing as required by the contract
 full quantities delivered
 packing slip present and correct
 correct markings on packaging, including expiry dates
 any further testing required
 manufacturer’s certifications included with consignment (or documents)
6.6.5 Warehouse Reports
Warehouse staff must immediately report to appropriate officials any problems found during
inspection.

6.7.1 Insurance Claims (for international procurements)

If the consignment is received with “qualified remarks,” the clearing agent will prepare necessary
papers to lodge a marine insurance claim. The papers include:
 copy of boat-note
 copy of b/l
 copy of commercial invoice
 copy of packing list
 copy of survey report
 copy of insurance policy (to be received from the supplier in cif contracts; to be
 eceived from the purchaser in cfr contracts)
 claim bill
6.7.2 Liquidated Damages
Liquidated damages are usually monetary fines imposed against the supplier for late delivery; they
are specified in the SBDs and the contract. The procuring agency shall specify the maximum
percentage of liquidity damages in the SBDs. When all shipments against the contract are
complete, do the following:
6.7.2.1 Determine if the supplier has accrued any liquidated damages (L/D). This determination process
requires a review of:
 contract terms and conditions with regard to liquidated damages
 b/l showing the shipment date (in other words, the date the goods were placed on-
 oard) or delivery receipt
  l/c advice from commercial bank showing the date it was issued
 percentage of consignment shipped within the deadlines required by the contract
6.7.2.2 If the review reveals late shipment(s) subject to liquidated damages, figure the amount.
6.7.3 Adjustment and Release of Retention Money
6.7.3.1 Subtract the amount of liquidated damages figured in 6.7.2 above from the money that has not yet
been paid to the supplier (in other words, subtracted from the “retention money”). Retention
money does not exceed 10% of the total contracted amount.
6.7.3.2 If the amount of the liquidated damages (L/D) is less than the amount of the retention money,
the amount remaining after deduction of the L/D amount must be released to the supplier. In this
case, the procurement office must:
 State in writing how exactly L/D applies
 Figure the amount of L/D, if applicable
 Advise the supplier of the applicability and amount of L/D
 Mark invoices for amount to be paid after deduction of the L/D amount, if applicable
 Send invoice(s) and supporting statements and calculations to the appropriate Finance
Office for action
6.7.4 Warranty Claims
Investigate any complaints or objections received from users; file warranty claims with the
supplier, as needed.

Apply Rule 64 of PPR 2014

6.8.1 Contract Records
At the end of the warranty period, record whether:
 any warranty claim(s) have been made, and if they have been settled
 any insurance claim was applicable, lodged and realized
 any liquidated damages were applicable and, if so, the amount of l/d deducted
6.8.2 Release of Performance Security
If there are no outstanding amounts due, claims or other valid reservations, mark the
Performance Security “released”, issue a letter to the supplier stipulating “no claim” on the
Performance Security and send a copy to the bank that issued the Performance Security.
6.8.3 Contract Files
Mark the file of the contract “closed” and retain it in the closed file records for a minimum
of five years.
Not all medicines and biological drugs needed to support the health care system are manufactured in
Pakistan at this time. Therefore, at times it is necessary for the Government of Punjab Department
of Health to procure medicines from authorized suppliers of internationally manufactured medicines
or directly from the international medicine manufacturer. While the previous Chapters of this
procurement manual have discussed the procedures for international competitive bidding in detail,
this Chapter is provided to highlight some key topics that the Procurement Unit must address when
it is conducting international competitive bidding to procure medicines on the international market.
This Chapter also provides references to Chapters in the Government of Punjab Contraceptive
Procurement manual, which is based upon international competitive bidding, where additional
information can be found.

Special product requirements

The Health Department’s Standard Bidding Documents should contain clauses and requirements that
are suitable for most international competitive procurements. Some international procurement
however may include vaccines, biological medicines, or other supplies that have special requirements.
These can include special storage requirements, such as for vaccines and some biological medicines,
special marking requirements, special testing requirements, special Incoterms (shipping terms) or
other special requirements. The Procurement Unit needs to review the products and identify any such
special requirements and make sure they are addressed in the appropriate Chapter of the bidding
documents, in either the technical specifications, bid data sheet, schedule of delivery, or special
conditions of contract. See annexure 1 for additional information about Incoterms.

Advertising for international procurements

For international competitive bidding it is often necessary to advertise or post information on the
bidding opportunity in special locations and media where international manufacturers and their
representatives are more likely to see the advertisement or posting. In addition to placing media
advertisements in at least two daily national newspapers, one in Urdu and one in English, for
international competitive procurement also place advertisements in appropriate international journals,
publications and websites, such as http://www.dgmarket.com. Also send notices to foreign embassies
and trade missions present in Pakistan.
Converting foreign exchange
In some international competitive bidding exercises there may be bids submitted by international
manufacturers that are in a foreign currency. In order to ensure that a bid in foreign currency is
properly converted to Pakistani Rupees so that a fair and transparent financial evaluation and
comparison of all bids can be made, it will be necessary to convert the international currency into
Pakistani Rupees. For information on converting foreign currency to Pakistani Rupees and a sample
currency conversion form to use for that purpose, see Module IV Chapters G.2 and G.3: Steps for
Financial Evaluation, in the Government of Punjab Contraceptive Procurement manual.

Arranging for a Letter of Credit (L/C)

In some international competitive procurements, a winning international manufacturer may require
that payment arrangement be made using a letter of credit. This requires working with a Pakistan
Bank and there are several steps to follow in applying for a letter of credit. For information on opening
a letter of credit to pay an international supplier, see Module V, Chapter D: Payment Arrangements, in
the Government of Punjab Contraceptive Procurement manual.

Compliance Program for medicines and biological drugs

Contracts for medicines and biological drugs from international sources may require special pre-
shipment inspection, sampling and testing to verify quality and compliance with specifications before
shipping. This is called a “Pre-shipment Compliance Program”. Information on setting up a Pre-
shipment Compliance program for internationally sourced medicines can be found in Module V,
Chapter F: Pre-shipment Inspection and Testing, in the Government of Punjab Contraceptive Procurement
manual.

Medicines procured from international manufacturers that arrive via ocean or air freight will have to
clear customs before being delivered to the purchaser. To ensure that shipments clear customs quickly
and efficiently so as not to incur demurrage charges, the proper and required shipping documents
must be provided to the clearance agent as soon as possible. For more information on shipping
documents required for international shipments see Module V, Chapter H: Shipping Documents, in the
Government of Punjab Contraceptive Procurement manual.

Port clearing staff is responsible for receiving the shipping documents mentioned above and
transferring them to the C and F agent, who is responsible for the several activities that may be
required to clear the goods through customs. For more information on the customs clearance
activities that may be required to clear goods and deliver them to the purchaser’s warehouse see
Module V, Chapter I: Customs Clearance and Delivery Arrangements, in the Government of Punjab
Contraceptive Procurement manual.
The international commercial terms (Incoterms) are a series of pre-defined commercial terms published by
the International Chamber of Commerce (ICC); they are widely used in international commercial
transactions. Incoterms are a series of three-letter trade terms related to common contractual sales
practices. The Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks
associated with the transportation and delivery of goods. These rules are accepted by governments,
legal authorities, and practitioners worldwide in interpreting the most commonly used terms in
international trade. They are intended to reduce, or remove altogether, uncertainties arising from
different interpretation of the rules in different countries.

The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in
Incoterms 2000 by introducing two new rules (delivered at terminal (DAT); delivered at place (DAP),
which replace four rules in the prior version—delivered at frontier (DAF); delivered ex ship (DES);
delivered ex quay (DEQ); and delivered duty unpaid (DDU).

Note
Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the
performance of carriage by rail, road, sea, air, inland waterway or by a combination of such
modes. If the Buyer instructs the Seller to deliver the cargo to a person, e.g., a freight forwarder
who is not a “carrier”, the Seller is deemed to have fulfilled his obligation to deliver the goods
when they are in the custody of that person.
Transport terminal means a railway terminal, a freight station, a container terminal or yard,
a multi-purpose cargo terminal or any similar receiving point.
Container includes any equipment used to unitize cargo, e.g., all types of containers and/or
flats, whether ISO accepted or not, trailers swap bodies, RoRo equipment or igloos, and applies
to all modes of transport.

1. EXW – Ex Works (named place of delivery)

The Seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e.
works, factory, warehouse, etc.) to the Buyer. In particular, he is not responsible for loading the
goods on the vehicle provided by the Buyer or for clearing the goods for export, unless otherwise
agreed to in the purchase contract. The Buyer bears all costs and risks involved in taking the goods
from the Seller’s premises to the desired destination. This term represents the minimum obligation
for the Seller.
Ex Works (EXW) should not be used when the Buyer cannot carry out export formalities directly
or indirectly. In such circumstances, the FCA term should be used.
2. FCA – Free Carrier (named place of delivery)
The Seller fulfills his obligation to deliver has after they hand over the goods, cleared for export,
into the charge of the carrier named by the Buyer at a named place or point of departure. If delivery
occurs at the Seller’s premises, the Seller is responsible for loading. If delivery occurs at any other
place, the Seller is not responsible for unloading. If no precise point is indicated by the Buyer, the
Seller may choose within the place or range stipulated where the carrier shall take the goods into his
charge. When, according to commercial practice, the Seller’s assistance is required in making the
contract with the carrier (such as in rail or air transport), the Seller may act at the Buyer’s risk and
expense.
FCA may be used for any mode of transport, including multi-modal transport.
3. FAS – Free Alongside Ship (named port of shipment)
The Seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on
the quay or in lighters at the named port of shipment. From that moment, the Buyer has to bear all
costs and risks of loss of or damage to the goods. The FAS term requires the Seller to clear the goods
for export and the Buyer to carry out customs formalities for import.
FAS can only be used for sea or inland waterway transport.
4. FOB – Free on Board (named port of shipment)
The Seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named
port of shipment. From that moment on, the Buyer has to bear all costs and risks of loss of or damage
to the goods. The FOB term requires the Seller to clear the goods for export.
FOB can only be used for sea or inland waterway transport. When the ship’s rail serves no practical
purpose, such as in the case of Ro/Roor container traffic, the FCA term should be used.

Under Group C terms, there are two critical division points, one for the division of costs, the other for
the division of risk. Costs are assumed by the Seller, until the destination point; risks are transferred to
the Buyer at the point of shipment.
5. CFR – Cost and Freight (named port of destination)
The Seller must pay the costs and freight necessary to bring the goods to the named port of
destination but the risk of loss or damage to the goods, as well as any additional costs due to events
occurring after the time the goods have been delivered on board the vessel, is transferred from the
Seller to the Buyer when the goods pass the ship’s rail in the port of shipment. The CFR term
requires the Seller to clear the goods for export.
CFR can only be used for sea and inland waterway transport. When the ship’s rail serves no
practical purpose, such as in the case of Ro/Ro or container traffic, the CPT term is more
appropriate.
6. CIF – Cost, Insurance and Freight (named port of destination)
The Seller has the same obligations as under CFR but with the addition that he has to procure
marine insurance against the Buyer’s risk of loss of or damage to the goods during the carriage. The
Seller contracts for insurance and pays the insurance premium, but the Seller is only required to
obtain insurance on minimum coverage. The CIF term requires the Seller to clear the goods for
export.
CIF can only be used for sea and inland waterway transport. When the ship’s rail serves no practical
purposes, such as in the case of Ro/Roor container traffic, the CIP term should be used.
7. CPT – Carriage Paid To (named place of destination)
The Seller pays the freight for the carriage of the goods to the named destination. The risk of loss
or damage to the goods, as well as additional costs due to events occurring after the time the goods
have been delivered to the carrier, is transferred from the Seller to the Buyer when the goods have
been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the
agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT
term requires the Seller to clear the goods for export.
CPT can be used for any mode of transport, including multi-modal transport.
8. CIP – Carriage and Insurance Paid to (named place of destination)
The Seller has the same obligations as under CPT but the Seller also has to procure cargo insurance
against the Buyer’s risk of loss of, or damage, to the goods during the carriage. The Seller contracts
for insurance and pays the insurance premium. The Buyer should note that under the CIP term the
Seller is only required to obtain insurance on minimum coverage. The CIP term requires the Seller to
clear the goods for export.
This term can be used for any mode of transport, including multi-modal transport.

9. DAT – Delivered at Terminal (named terminal at port or place of destination)

Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks
up to the point that the goods are unloaded at the terminal.
10. DAP – Delivered at Place (named place of destination)
Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all
risks prior to the point that the goods are ready for unloading by the buyer.
11. DDP – Delivered Duty Paid (named place of destination)
The Seller fulfills his obligation to deliver when the goods have been made available at the named
place in the country of importation, but not unloaded. The Seller has to bear the risks and costs,
including duties, taxes and other charges of delivering the goods thereto, cleared for importation. If
the parties wish to exclude from the Seller’s obligations some of the costs payable upon importation
of the goods (such as VAT), this should be made clear by adding words to this effect: “Delivered
duty paid, VAT unpaid (…named place of destination)”.
This term can be used for any mode of transport.
Previous terms from Incoterms 2000 eliminated from Incoterms 2010
DAF – Delivered at Frontier (named place)
The Seller fulfills his obligation to deliver when the goods have been made available cleared for export at the
named point and place at the frontier, but before the customs border of the adjoining country. The term
“frontier” may be used for any frontier, including that of the country of export. Therefore, it is of vital
importance that the frontier in question be defined precisely by naming the point and place in the term.
This term is primarily used when goods are to be carried by rail or road, but it may be used for any mode of
transport.
DES – Delivered Ex Ship (named port of destination)
The Seller fulfills his obligation to deliver when the goods have been made available to the Buyer on board
the ship, but not cleared for import at the named port of destination. The Seller has to bear all the costs and
risks involved in bringing the goods to the named port of destination.
This term can only be used for sea or inland waterway transport.
DEQ – Delivered Ex Quay (named port of destination)
The Seller fulfills his obligation to deliver when he has made the goods available to the Buyer on the quay
(wharf) at the named port of destination, but not cleared for importation. The Seller has to bear all risks and
costs involved in bringing the goods to the named port of destination and discharging the goods on the quay
(wharf), including duties, taxes and other charges of delivering the goods thereto.
If the parties wish to exclude from the Seller’s obligations some of the costs payable upon importation of the
goods (such as value added tax - VAT), this should be made clear by adding the words to this effect:
“Delivered ex quay, VAT unpaid (named port of destination)”.
This term can only be used for sea or inland waterway transport. It should not be used if the Seller is unable,
directly or indirectly, to obtain the import license.
DDU – Delivered Duty Unpaid (named place of destination)
The Seller fulfills his obligation to deliver when the goods have been made available at the named place
in the country of importation. The Seller has to bear the costs and risks involved in bringing the goods
thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and
risks of carrying out customs formalities. The Buyer has to pay any additional costs and to bear any risks
caused by his failure to clear the goods for import in time.
If the parties wish the Seller to carry out customs formalities and bear the resulting costs and risks, this has
to be made clear by adding words to this effect.
If the parties wish to include in the Seller’s obligations some of the costs payable upon importation of the
goods (such as VAT), this should be made clear by adding words to this effect: “Delivered duty unpaid, VAT
paid (…named place of destination)”.
This term can be used for any mode of transport.
1Incoterms 2010 does not obligate the buyer or seller to pay for insurance. The purchase contract should state which party is required to pay for insurance.
The charges can be paid by either the buyer or the seller, depending on the contract of carriage
Legal Reference: Government of Punjab Procurement Rules2009: Rule 2 Definition Sub-Rule (1)(f)
Corrupt and Fraudulent Practices. The Code of Business Ethics is applicable to public sector
procurement for all Health Services programs.
“An employee shall not use his/her authority or office for personal gain. Personal gain includes accepting
or requesting anything of material value from bidders, prospective bidders or suppliers for the
employee, his/her spouse, parents, children or other close relatives, or for other persons from whom
the employee might gain direct or indirect benefit from the gift.”

Based on the above legal requirement for employee behavior, all employees shall seek to maintain
and enhance the reputation of the Government of Punjab by:
• Maintaining the highest standards of honesty and integrity in all relationships both inside and
outside the program in which he/she works;
• Developing the highest possible standards of professional competence;
• Using funds and other resources for which he is responsible to provide the maximum benefit to
the program and the Government; and
• Complying with both the letter and the spirit of:
The laws, rules and regulations of the Government of Punjab and Islamic Republic of Pakistan
accepted professional ethics contractual obligations

All employees shall declare any personal interest they may have in any procurement that may affect,
or may reasonably be deemed by others to affect, their impartiality in any matter relevant to their
duties.

All employees shall respect the confidentiality of information gained in the course of their duties and
shall not use such information for personal gain or for the unfair benefit of any bidder or supplier.
Information given by an employee of a national program in the course of his/her duty shall be true,
fair and not designed to mislead.

All employees shall treat all bidders and suppliers with fairness and impartiality, and avoid any
business arrangement that might prevent the effective operation of fair competition.

No employee shall accept business gifts from current or potential suppliers unless such gifts are of a
very small intrinsic value such as a calendar or business diary.

All employees shall refrain from accepting any business hospitality that might be viewed by
others as having an influence in making a business decision as a result of accepting that hospitality.

All employees have a duty to report any unethical conduct by a colleague, a bidder or a supplier to
their superiors or to the auditors. Examples of unethical conduct include:
1) Revealing confidential or “insider information” either directly or indirectly to any bidder or
prospective bidder.
2) Discussing procurement with any bidder or prospective bidder outside the official rules and
procedures for conducting procurements.
3) Favoring or discriminating against any bidder or prospective bidder in the drafting of
technical specifications or standards or the evaluation of bids.
4) Destroying, damaging, hiding, removing or improperly changing any official procurement
document.
5) Accepting or requesting any money, travel, meals, entertainment, gifts, favours, discounts
or anything of material value from bidders or prospective bidders.
6) Discussing or accepting future employment with a bidder or prospective bidder.
7) Requesting any other employee or Government official representing the procuring agency
in a procurement to violate the public procurement rules or procedures.
8) Ignoring evidence that the Code of Ethics has been violated by a member of a Bid Review
Committee, a civil servant or any other employee or representative of the procuring agency.
9) Ignoring illegal or unethical activity by bidders or prospective bidders, including any offer
of personal inducements or rewards.
This information has been taken from the document “Manual of Procurement Policies and Standard
Operating Procedures for the NHF Programs of the former Ministry of Health and the former Ministry
of Population Welfare”. Refer to this document for additional information on procurement requisitions.
Preparing a Procurement Requisition
1. Prepare an initial description of requirements.
a. general, summary description of the requirement
b. complete list of the items required
c. purpose the goods are being purchased
d. specification for each item required
e. required delivery schedule
2. Estimate the value of the medicines& supplies. The estimate may be based on recent, similar contracts,
market research, or an estimate by a technical specialist. Seek assistance from technical specialists
within the parent department or outside it, if required.
3. Obtain confirmation of the availability of funding for the requirement, through the signature of an
authorized official on the Requisition Form. (This official will normally be the Head of the Finance
Chapter in the Department concerned.)
4. Obtain approval to proceed with the procurement, through the signature of the budget holder, or
other duly authorized official, on the Requisition Form. (The budget holder will normally be the
relevant sector / program manager duly authorized by the Accounting Officer).
5. Check the description of requirements, as far as possible, and attach it to the Requisition Form, if
necessary.
6. If the Requisition has come from an end user, and has not been generated by the Procurement
Unit itself, check the description of requirements with the end user and discuss any clarifications or
changes required with the end user.
7. The officer who begins the procurement by initiating the requisition must sign the Requisition
Form in order to certify that the medicines &supplies are required.
Note: Purchase Requisitions should NOT mix requirements. Separate requisitions should be used for
different requirements.

The requisition form SPF1 must be signed in three separate places by the appropriate official, to
provide the following certifications:
• Availability of funding for the procurement requirement in the budget, based on the estimated
value on the requisition form;
• Confirmation of the need for the goods, works or services listed on the requisition form; and
• Approval to proceed with the procurement process for those items.
1. The Health Department, Government of Punjab invites sealed bids from the eligible bidders
for supply of Medicines and Surgical Disposable Items etc. to meet the requirement of Director
General Health Services, Punjab, Lahore. Detailed description and quantities of Medicines and
Surgical Disposable Items etc. are given in the Bidding Documents.
2. Interested eligible bidders may get the Bidding Documents at the address mentioned below on
submission of written application along-with payment of non-refundable fee of Rs. [insert
amount in rupees]. Bidding Documents shall be issued up-to [insert date] only during office
hours at the address given below. However, a copy of the Bidding Documents is also available
for information only on the websites of Punjab Procurement Regulatory Authority
(www.ppra.punjab.gov.pk) until the closing date for the submission of bids
3. Bidding will be conducted through Single Stage – Two Envelopes Bidding procedure as per
Rule 36 (b) of Punjab PPR-2014 and is open to all interested eligible bidders.
4. Bids must be delivered to the address below at or before [insert time and date]. All bids must be
accompanied by a bid security of [insert amount or percentage of total bid value] in the shape
of pay order/ bank draft/ call deposit to be supported with the financial bid. Late bids will be
rejected. Bids will be opened in the presence of the bidders’ representatives who choose to
attend at the address [insert address] at [insert time and date]
5. The Bidders are requested to give their best and final prices as no negotiations on the prices are
allowed.

[insert: name of office]

[insert: address]
[insert: telephone number]
[insert: facsimile or e-mail address]
 A brief description of the type(s) of goods or works should be provided, including quantities,
location of project and other information necessary to enable potential bidders to decide whether
or not to respond to the invitation. Bidding documents may require bidders to have specific
experience or capabilities; such restrictions should also be included in this paragraph.
 Time for example, 0900 to 1200 hours.
 The fee, to defray printing and mailing/shipping costs, should be nominal.
 The delivery procedure is usually air-mail for overseas delivery and surface mail or courier for local
delivery. If urgency or security dictates, courier services may be required for overseas delivery.
 The amount of bid security, if required, should be stated as a fixed amount or as a minimum
percentage of the bid price. Alternatively, if a bid security is not required, the paragraph should so
state.

The content of the Invitation for Bids should be consistent with the Bid Data Sheet (BDS). In particular,
the dates, times and place for bid submission and opening and the amount required for bid security in
the IFB must be carefully checked to ensure consistency with the BDS. Also, the IFB could list key
qualification criteria required for prospective Bidders to be responsive, as officially specified in the BDS
(e.g., minimum financial capacity, the minimum number of years during which the prospective Bidder
has manufactured and marketed similar goods).
 Procurement Number
Entity Department/ Financial Year Sequence Bid Number Contract
Project Number Number

Subject of Procurement:

SUBMISSION INFORMATION
A1 Estimated cost (currency and amount)

A2 Source of funding

A3 Proposed Method of Procurement (e.g. Pre-qualification,

Open Tender, RFQ, RFP etc)
A4 For Limited Bidding or RFQ – state method of selecting
shortlist
A5 For Open Tender, RFP, Pre-Qualification, etc state
proposed date of notice and publications in which notice
will be published
A6 Proposed cost of bidding document

A7 If a pre-bid meeting is to be held – give reason and

proposed date
A8 Any other relevant information

i. Documents Attached: (list any other documents submitted)

1. Form SPF 1: Procurement Requisition
2. Minutes of Specifications Committee
3. Draft Invitation to Bid, and Shortlist (if applicable) or Pre-qualification Notice
4. Draft Bidding Document or Draft Pre-qualification Document (if applicable)
The information contained in this form and the attached documents is complete, true and accurate and in accordance with
the Department’s Procurement Manual and Standard Bidding Documents.
Signature:__________________________ Name:_______________________________
Position:__________________________ Date:
Responsible Officer (DD/MM/YY)
Minutes of the Pre-Bid Conference on Bid Package No. (insert number)
1. Meeting date, place and time:
2. Bid Package No.:
3. Bidders represented: (mention names of bidders)
4. Discussion of the Conference:
 Memo No.___________________ Date

Government of Punjab
Health Department
(include address)
To
Technical expert

Subject: Request for Clarification on query raised in pre-bid conference on

Bid package No. --- for (mention name of goods)
Ref: Pre-bid conference held on (mention date)
Dear Sir:
Queries raised in the pre-bid conference held on the subject bid package on (mention date) are mentioned in the
attached copy of the minutes of the above-mentioned pre-bid conference for your clarification and necessary
action.
We will appreciate your earliest response to the above. Please note that the bids are due for submission on
(insert bid submission date).
Thanking you,

Copy for information to:

1. The user office.
 Memo No.___________________ Date

Government of Punjab
Health Department
(insert address)
To
All Bidders
(insert the names and addresses)

Subject: Clarification on query raised in Pre-bid conference on

Bid Package No. --- for (insert name of goods)
Ref: Pre-bid Conference held on (insert date)
Dear Sir:
Clarifications/replies to queries raised in the pre-bid conference on the subject bidpackage on (mention date) are mentioned
for your information and necessary action.

Query and Reference Reply/Clarification

(insert page no., paragraph no., Chapter no, etc.) (insert the exact reply/clarification)

Thanking you,

Copy for information to:

1. Government of Punjab
2. The User office
 Memo No.___________________ Date

Government of Punjab
Health Department
(insert address)
To
M/S
(All bidders who have purchased the Bid Package)

Subject: Notification on extension of Bid submission date forBid package No. ---- for (insert name of goods)
In order to facilitate necessary actions on the reply/clarification to queries raised in the pre-bid conference held on the
subject bid package on (mention date) the Bidding Document selling date and bid submission date are hereby extended as
follows:

We will appreciate your earliest response to the above. Please note that the bids aredue for submission on (insert bid
submission date).

Thanking you,

Copy for information to: 1. PPRA.

2. The User office.
 Memo No.___________________ Date

Government of Punjab
Health Department
(insert address)

NOTIFICATION
Bids against Bid Package No. ---- will be opened on (mention date, time, and venue.) Salient information about the package is
given below.

All members of the Bid Evaluation Committee are requested to kindly attend the meeting.

CC:
Copy for information and necessary action:
all members of Bid Evaluation Committee.
Bid Opening Checklist
(To be filled out for each bid as it is read out)

Contract Reference: __________________________________________

Bid Opening Date: ___________________________ Time: _________

Name of Bidder: _____________________________________________

(a) Is outer envelope of bid sealed?

(b) Is bid form completed and signed?
(c) Expiration date of bid:
(d) Is documentary authority for signing enclosed?
(e) Describe any “Substitution,” “Withdrawal,” or “Modification” submitted
(f) Describe any alternative bid made:
(g) Describe any discounts or modifications offered:
(h) Name of bidder or representative present:
(i) Sealed Financial Bids
(j) Bid security enclosed

Signature of responsible official: _______________________

Date: _______________
RECORD OF BID OPENPNG
Name of Project /Contract: _______________________
Invitation for Bid No.: _______________
Date: _______________
Time: _______________

Modifications or Comments
Bidder’s Name and Address Local Agent’s Name and (Discounts, Withdrawals,
Address Missing Bid Security, etc.)
1
2
3
4

BIDDERS PRESENT
Name Company Signature
1
2
3
4
5

MEMBERS OF BID/TENDER OPENING COMMITTEE

Name Signature
1
2
3
4
5
 1.1 Program Name
1.2 Funding number if any (Int. Procurement)
1.3 Date of effectiveness
1.4 Closing date
(a) original
(b) revised

1.5 Name of project

1.6 Purchaser (or Employer)
(a) name
(b) address

1.7 Contract number (identification)

1.8 Contract description
1.9 Cost estimate1
1.10 Method of procurement ICB _______ NCB _______ Other ______
(check one)
1.11 Prior review required2 Yes _______ No _______
1.12 Domestic preference allowed Yes _______ No _______
1.13 Fixed price contract Yes _______ No _______

1 Budget allocation including foreign exchange component (FEC)

2 If response is “no,” items 2.2(b), 2.4(b), and 2.6(b) in Table 2 may be left blank.
2.1 Specific procurement notice
(a) name of national newspaper
(b) issue date
(c) name of international publication
(d) issue date
(e) PPRA website date

2.2 Standard Bidding Document

(a) title, publication date
(b) date of issue to bidders

2.3 Number of firms issued documents

2.4 Amendments to documents, if any

(a) list all issue dates 1.2. 3. .

1.2. 3. .

2.5 Date of pre-bid conference, if any

2.6 Date minutes of conference sent to bidders

3.1 Bid submission deadline
(a) original date, time
(b) extensions, if any

3.2 Bid opening date, time

3.3 Record of bid opening

3.4 Number of bids submitted

3.5 Bid validity period (days or weeks)

(a) originally specified
(b) extensions, if any
Bidder Verification Eligibility Completeness Commercial Substantial Accept for
(a) (b) (c) of Bid Responsiveness Responsiveness Financial
(d) Refer for Evaluation
Technical (f)
Evaluation (g)
(e)
Bidder’s Name_______________________ Contract Number______ __

1. Bid Form and Price Schedule filled in and duly signed? (yes/no)

2. Bid validity period conforms to the requirement in the bidding documents? (yes
/no)

3. If the bidder is a joint venture, Joint Venture agreement provided?

(yes /no /not applicable)

4. If the bidder is not the manufacturer, whether bidder provided Manufacturer’s

confirmation to warranty obligations? (yes /no /not applicable)

5. If the bid has been submitted by an agent, whether the Manufacturer’s

Authorization to submit the bid is provided? (yes /no /not applicable)
Bidder’s Name_____________________________ Contract No.______________

1. Has this bidder been pre-qualified? (yes/no/not applicable)

2. Is bidder a national of an eligible source country? (yes/no)

3. If bid is from a joint venture, are all partners nationals of an eligible source country?
(yes/no/not applicable)

4. If bid is from a joint venture, is the joint venture registered in an eligible source
country? (yes/no/not applicable)

5. Do the goods and/or services offered originate from eligible source countries?
(yes/no)

6. If the bidder is a publicly owned enterprise in Pakistan, is the bidder legally and
financially autonomous and operating under commercial law? (yes/no/not applicable)
Bidder’s Name________________________ Contract No.______________

1. Does the Bidder offer all of the required items? (yes/no)

2. Does the Bidder offer full quantities of the required items? (yes/no)

3. Has the Bidder made any additions, deletions or other changes to the original bidding
documents? (yes/no)

4. Has the Bidder initialed any erasures, additions, deletions or other changes to the
original bidding documents? (yes/no)

5. Are all pages of the bidding document and the bid included in the submission?
(yes/no)

6. Are all of the required documents and attachments included with the bid? (yes/no)
(If no, list missing items.)
Bidder’s Name________________________ Contract No.______________

1. Does the Bidder ask for price adjustments when a fixed price bid was invited?
(yes/no)

2. Does the Bidder offer an alternative design in the bid? (yes/no)

3. What is the completion/delivery time offered in the bid?

4. Does the completion/delivery time offered in the bid conform to the Schedule of
Requirements in the Bidding Documents? (yes/no)

5. Is any sub-contracting mentioned in the bid? (yes/no)

6. Does the bidder agree to bear the responsibilities and liabilities allocated in the
bidding documents, such as performance securities, insurance coverage, etc? (yes/no)
If no, provide details.

7. Does the bidder agree to applicable law, taxes and duties and dispute resolution
procedures specifies in the bidding documents? (yes/no) If no, provide details.
 Technical Evaluation Sub-Schedule for Table 4
Name of Bidder_________________________ Contract No._________________

Name of Item: ______________________________________________________

Specification per Bidding Remarks (acceptable, unacceptable, - if

Document unacceptable, provide reasons)
1
2
3
4
5

Offered Product’s Brand Name: ___________________________________

Overall Comments:
(If product mentioned above is other than what was specified in the bidding documents, please state whether
or not the substituted product offers substantial equivalence in critical performance parameters or in other
requirements.)

Signature of technical expert______________________________________

Date________________________
S. Parameters Detail Total Remarks
No. Marks
1 Past Major institutions served: 15 Institutions include
Performance government
i No any institution served 0 departments and
(Last one year)
ii 1 3 private hospitals
As per Bid
Form 4 iii 2 to 3 5
iii 4 to 5 8
iii 6 to 7 12
iii 8 and above 15
2 Market 5 Bidders having less
experience in i 1 - 3 years 2 than 1 year
quoted items experiences are
ii 3 - 5 years 4 ineligible. Experience
will be confirmed
iii Above 5 years 5
from the date of
Registration
3 Credibility & 10 GMP certificate
Certification i Valid GMP Certification 5 issued by the
concerned Drug
ii Valid ISO Certification 3 Regulatory Authority
Any other international reputed is required
iii certification 2
4 Financial 15 Bank Statements are
status i Last year Audited Balance Sheet 7 not required. Bidder
ii Tax Returns (Last 3 years) 5 can provide more
than one Bank
iii Bank Certificate1 3 certificates

1
The Bank will certify about the Bidder’s financial worth, liquidity status, reputation and that they have never defaulted in financial transactions
and letter of credits (LCs).
5 Technical Staff 10 The bidder is required
i Plant Manager B. Pharm 2 to attach attested copy
of the relevant Degree
PhD/M. Phil 3
and appointment letter
B. Pharm 2 of concerned technical
Production staff
ii Manager PhD/M. Phil 3
Quality Control B. Pharm/MSc
iii Manager Chemistry 2
Quality Assurance B. Pharm/MSc
iv Manager Chemistry 2
6 Production Per day production capacity of quoted items 10
Capacity against the total advertised quantity:
i Less than 1% 0
ii 1% 5
iii 1.1% - 1.5% 7
iv 1.6% - 2% 10

7 Product Samples will be examined per following 10 Product that 100%

Sample parameters: comply with the
advertised
a. Labeling and Packing Rules 1986
specifications will be
b. Outer packing considered for
c. Inner packing evaluation
d. Physical appearance
i Excellent 10
ii Good 7
iii Satisfactory 5
iv Unsatisfactory 0

Total marks: 75
Qualifying marks: 65% (48.75) and above
Name of Procuring Agency ___________________________________ Form SPF 4
Page __of ___

Procurement Number
Agency Department/ Financial Year Sequence Bid Number Contract
Project Number Number

No Bidder Technical Score out Comments (Reasons for non

Compliance of 75 compliance)
1 C/NC
2 C/NC
3 C/NC
4 C/NC
5 C/NC
6 C/NC

KEY: C DENOTES COMPLIANT NC DENOTES NON-COMPLIANT

This examination eliminated [number] companies, [Names of Companies].

List names of companies eliminated on separate sheet(s).
Attach Combined Technical Specification and Compliance Sheets for each Quotation/ Tender if
technical evaluation is complex.
 Bidder Identification Read-out Bid Price(s)1
Modifications or
Name City / Country Currency Amount(s) Comments2
(a) Province © (ies) or % (f)
(b) (d) (e)

1For single currency option (see Annex 1, Para. 6(d)(ii)), secondary currencies are expressed in column e as a percentage of the total bid price
2 Describe any modifications to the read-out bid, such as discounts offered, withdrawals and alternative bids. Note also the absence of any required bid
security or other critical items
 Bidder Read-out Bid Price(s) Corrections Corrected Unconditional Corrected
Bid Discounts2 /
Price(s) Discounte
d Bid
Currency(i Amount(s) Computationa Provisional Percent Amount(s)
Price(s)
es) l Errors1 Sums
(a)
(f)= © +
(b) (c) (d) (e) (g) (h)
(d) – (e) (i)=(f)-(h)

Note: Only bids accepted for preliminary examination (Table 5, column g) should be included in this and subsequent tables. Columns a, b, and c
are from Table 4 (columns a, d, and e, respectively).
1 Corrections in column d may be positive or negative.
2 If the discount is offered as a percent, column h is normally the product of the amounts in columns f and g. If the discount is provided as an

amount, it is entered directly in column h. A price increase is a negative discount.

Name of Bidder___________________________ Contract No.____________

1. Is bid accompanied by bid security? (yes/no)

2. Does the amount of the bid security conform to the amount required in the bidding
documents? (yes/no)

3. Does the period of the bid security conform to the period required in the bidding
documents? (yes/no)

4. If bid security is issued as a bank guarantee, is it consistent with the wording of the bid
security form provided in the bidding document? (yes/no/ not applicable)

5. If the bid is submitted by a joint venture, is the bid security in the name of all of partners
of the joint venture? (yes/no/not applicable)
 Ranking Worksheet

Bid No.

Bid Opening Date:

Bidder Total Bid Price Ranking*

* Prior to any cross discounts that may be applicable

(From Manual of Procurement Policies and Standard Operating Procedures for the NHF Programs of the former Ministry
of Health and the former Ministry of Population Welfare, Government of Pakistan.)
Name of Procuring Agency ___________________________________ Form SPF 4
Page __of ___
BID EVALUATION REPORT
Procurement Number
PA Department/P Financial Year Sequence Bid Number Contract
roject Number Number

Introduction
The requirement is for the procurement of [subject of procurement].
The procurement method used and approved by the RA was [Open Tender/ Limited Tender/ Request
for Quotations/Direct Procurement].
Details of Invitation
The bidding documents were approved by the RA on [date]. The announcement was advertised on
the [date] in [name of publications]. A list of bidders purchasing the Bidding Documents is attached.
{Or for Limited Tender/RFQ/ or following Pre-qualification for this Tender}
The bidding documents were approved by the RA on [date]. The shortlist of bidders was selected by the
following method [explain method of selection].
Other Bidding Information
[List any other information on the bidding process, including any Pre-Bid Meeting, clarifications
requested, or extensions of bidding period, and list and attach the appropriate records.]
Bid Closing
Bids were closed on [date] at [time] at [location].
Details of Bid Opening/Quotation Opening
Bids were opened in public at [location] by the Bid Opening Committee on [date] at [time]. Copies
of the Record of Bid Opening, the Register of Attendance, and the Record of Samples Received are
attached.
[Explain any important issues that arose during the bid opening procedures.]
The sealed quotations were opened at [location] by the Bid Opening Committee on [date] at [time].
Copies of the Record of Bid Opening, the Register of Attendance, and the Record of Samples Received
are attached.
Evaluation Procedures
The Technical (Evaluation) Committee consisted of the following officials:
[Name] [Position] (Chairman of Evaluation Committee)
[Name] [Position]
[Name] [Position]
[Name] [Position]
Evaluation Methodology
The evaluation method specified in the bidding documents was the lowest priced bid (Least Cost Selection)
of the technically compliant and responsive bids.
[Explain important evaluation criteria such as evaluated price adjustments (e.g., for delays) to be used in
determining the best evaluated bid, acceptable deviations from the confidential price estimate, or other
criteria as specified in the bidding documents.]
Preliminary Examination of Bids
Bids were examined to determine the:
ion of the required bid security:
responsiveness of each bid to the Invitation; and
and qualifications of the bidder.
The results of this preliminary examination are given in Table 1 attached.
[Explain why any bids were declared non-responsive and rejected during the preliminary examination.]
Technical Evaluation
i. Technical evaluation determined the compliance of each responsive bid to the technical
specification issued in the bidding documents.
ii. {Samples submitted were inspected and confirmed to be acceptable.}
iii. Technical evaluation was conducted on a pass/fail basis only. Only bids that passed
both the preliminary responsiveness and technical compliance tests were considered
for financial evaluation.
The evaluation of the technical specifications of all bids is summarized in Table 2.
[Give a brief description of the results of the Technical Evaluation, with detailed justification as to why any
bids were declared non-compliant.]
Financial evaluation (of technically compliant and responsive bids)
All responsive and technically compliant bids were examined and tabulated in Table 3 to:
i. record the submitted bid prices;
 ii. correct for any omissions or arithmetic mistakes;
iii. convert the bid prices to Pakistani Rupees (if necessary); and
iv. adjust the bid prices for criteria specified in the bidding document (such as delayed
delivery penalties) to arrive at the evaluated bid price for comparison;
v. rank bids on the basis of the lowest evaluated price.
[Describe for each bid any corrections, errors in calculations, penalties added to the bid price for
evaluation purposes and conversion to a common currency if necessary.]
Qualification (when no pre-qualification procedure was used)
The Qualification as per Rule 17 is subject to reasons to be recorded and may be applied whether Pre-
Qualification under Rule 15 has been done or not.
The best ranked bid submitted by [Name of Company] was subjected to Qualification examination
covering (add/delete as applicable):
i. experience and performance on similar contracts;
ii. equipment and manufacturing/construction facilities
iii. qualifications and experience of personnel;
iv. financial position;
v. local facilities and representation;
vi. current capacity available;
[Record any constraints or limitations, and accept or reject (with full justifications) the bidder.]
{If the bidder is rejected, repeat the Qualification test for the next ranked bidder.} [Name of Company]
is confirmed to have passed the Qualification requirements. The original estimated market price of the
procurement was [insert amount]
Recommendation
On the basis of the evaluation criteria stated in the bidding document, it is recommended that the
award be made to [Name of Company] for a total contract value of [currency and amount] for the
procurement of [list all items that the award relates to]. {Or recommend negotiations with the
recommended Company and state the purpose of negotiations.}
Signed by the Technical (Evaluation) Committee:
Signature:………………………………..Name:……………………………….
Signature:………………………………..Name:……………………………….
Signature:………………………………..Name:……………………………….
Date:………………………………(DD/MM/YY)
Attachments: (where applicable)
List of Bidders who purchased or received the bidding documents.
Record of Bid Opening
Record of Samples Received
Bid Opening Attendance List.
Evidence of Exchange Rates used for conversion to Pakistani Rupees
(ONLY BIDS THAT ARE RESPONSIVE)

Form SPF 4

Procurement Number
Agency Department/ Financial Year Sequence Bid Number Contract
Project Number Number

Technical Comments
No Bidder Compliance (Reasons for non compliance)
1 C/NC
2 C/NC
3 C/NC
4 C/NC
5 C/NC
6 C/NC
KEY: C DENOTES COMPLIANT NC DENOTES NON-COMPLIANT

This examination eliminated [number] bidders, [Names of Bidders].

List names of bidders eliminated on separate sheet(s).
Attach Combined Technical Specification and Compliance Sheets for each Quotation/ Tender if
technical evaluation is complex.
(ONLY BIDS THAT ARE RESPONSIVE AND TECHNICALLY COMPLIANT)

Form SPF 4
(From Manual of Procurement Policies and Standard Operating Procedures for the NHF Programs ofthe former Ministry of
Health and the former Ministry of Population Welfare, Government of Pakistan.)

Name of Procuring Agency ___________________________________ Form SPF 2 - B

SUBMISSION TO RELEVANT AUTHORITY
CHAPTER-B: REQUEST FOR APPROVAL OF EVALUATION REPORT
Procurement Number
Entity Department/Proje Financial Year Sequence Number Bid Number Contract
ct Number

Subject of Procurement:

SUBMISSION INFORMATION
1 Type of evaluation Report (Technical only or Combined Financial
and Technical)
2 Have negotiations been held with the recommended Bidder or other
bidders – if yes give details
3 Name and address of Supplier/Contractor recommended for
contract award
4 Currency and total amount of recommended contract award
5 Any other relevant information
Documents Attached: (List any other documents or delete if not applicable)
1. Evaluation Report for Goods
2. Record of Negotiations (if applicable)
3. Copies of all Bids submitted
Related Documents Submitted Previously: (Available for reference from the Secretariat to the Tender Committee)
1. Approved Bidding Document
Previous Submission: Date
(Chapter letter and title) Approved:
The information contained in this form and the attached documents is complete, true and accurateand in accordance with
the Department’s Procurement Manual and Standard Bidding Documents.

Signature:__________________________ Name:____________________________

Position:__________________________ Date:
Responsible Officer (DD/MM/YY)
Name of Procuring Agency ___________________________________ Form SPF 2 - C
SUBMISSION TO RELEVANT AUTHORITY
CHAPTER-C: RECOMMENDATION FOR CONTRACT AWARD
Procurement Number
Entity Department/Project Financial Year Sequence Number Bid Number Contract Number

Subject of Procurement:

SUBMISSION INFORMATION

1 Name and address of Supplier/Contractor

2 Total value of Contract

3 Proposed date of contract signature

4 Any other relevant information

Documents Attached: (List any other documents or delete if not applicable)

1. Draft Contract
2. Draft Notice of Award
Related Documents Submitted Previously:(Available for reference from the Secretariat to the
Tender Committee)
1. Approved Bidding Document
2. Approved Evaluation Report
Previous Submission: Date
(Chapter letter and title) Approved:

The information contained in this form and the attached documents is complete, true and accurate
and in accordance with the Department’s Procurement Manual and Standard Bidding Documents.

Signature:__________________________ Name: ____________________________

Position:__________________________ Date:
Responsible Officer (DD/MM/YY)
Memo No.___________________ Date

Government of Punjab
Health Department
(insert address)

To
M/S (insert name and address of the bidder)
Subject: Award Notification against bid package no.____ for supplying (insert short description of goods)

Dear Sirs,
We are pleased to award you the contract for bid package no. (insert no.) for the goods and price as mentioned below:

Bid Package No. and short Total Contract Price with Basis of Contract
description of goods Currency
(insert short description of goods) (insert price with currency) (insert whether it is a CIF,CFR or
EXW contract or otherwise)

Please note that the contract will include, among others, the following documents:
i) The Form of Contract,
ii) The Bid Form and the Price Schedule submitted by the Bidder,
iii) The Schedule of Requirements (offered by the Bidder and accepted by the Purchaser),
iv) The Technical Specifications (offered by the Bidder and accepted by the Purchaser),
v) The General Conditions of Contract,
vi) The Special Conditions of Contract (duly filled in), and,
vii) The Performance Security submitted by the Bidder.
Two copies of the contract form are enclosed herewith for your signing and returning tous. Please also submit a
Performance Security in the amount not less than (insert percentage) of the contract price within (insert number of days) of receipt
of this award notification.
Responsibilities for Contract Performance (Example)
Supplier
1. Provides performance security.
2. Notifies purchaser in writing of all subcontracts awarded under contract, if not stated in bid.
3. Provides reasonable facilities and assistance to inspection agents, including access to production data and
quality control records, for inspection purposes.
4. Provides packing sufficient to prevent damage or deterioration of goods during transit.
5. Includes appropriate temperature monitoring devices with packing, if needed.
6. Complies with requested routing.
7. Arranges and pays for shipping and insurance (CIF terms).
8. Notifies purchaser by fax, telex, cable, or e-mail of full details of shipment.
9. Forwards shipping documents and quality assurance documents to purchaser.
10. Delivers goods in accordance with time schedule of the contract.
11. Requests payment in writing from purchaser (or purchaser’s bank).
12. Pays taxes, stamp duties, license fees, and any other levies imposed outside of the destination country
(foreign supplier).
13. Pays taxes, duties, and license fees incurred or imposed locally, prior to delivery (local supplier).
14. Replaces rejected goods.
15. Notifies purchaser in writing of any impending delay in delivery, likely duration, and its causes.
16. Claims any adjustment in price within 30 days after receipt of change order.
17. Notifies purchaser in writing of any force majeure situation.
Purchaser
1. Opens Letter of Credit in favor of supplier.
2. Arranges and prepares for pre- and post-shipment inspections and tests.
3. Pays for pre-shipment inspections and tests.
4. Notifies supplier (in writing) of identity of any representatives retained for inspections and tests.
5. Authorizes (in writing) shipment of goods based on pre-shipment inspection and test results.
6. Provides transportation of goods after delivery.
7. Arranges for payment of contract price to supplier upon receipt of invoice and documents.
8. Provides Acceptance Certificate for each delivery.
9. Discharges and returns performance security to supplier not later than 30 days following the date of
completion of the supplier’s performance obligation, including any warranty obligation, under the contract.
10. Notifies supplier (in writing) of any claims arising under warranty.
11. Issues change orders (in writing) to supplier for any modification to specifications, method of shipment,
place of delivery, or services.
12. Notifies supplier (in writing) of default(s).
13. Notifies supplier (in writing) of intention to terminate contract for any reason
This Appendix contains information about:
A. Pre-qualification Issues
B. Stringent Regulatory Authorities
C. World Health Organization Pre-qualification

Procuring entities sometimes choose to limit competition for contract awards to a list of potential
bidders and products they have prescreened and approved through a prequalification process. This
involves advertising the opportunity to pre-qualify and providing a set of documents to applicants that
establishes rules and requirements, as well as evaluating every application. In addition, WHO’s
Prequalification of Medicines Program results in a list of pre-qualified products and manufacturers.
WHO’s pre-qualification program is described in more detail in Chapter 2 of this appendix.
Pre-qualification focuses on two separate aspects of the selection process:
• Quality, safety, and efficacy of the product.
• Reliability of the supplier.
In countries with weak regulatory systems, pre-qualification can be a valuable tool for helping to ensure
product quality as well as reliability of the supplier. In countries with satisfactory regulatory systems, pre-
qualification tends to focus more on supplier reliability.
Pre-qualification may be an attractive time-saver in situations in which a large number of bids from
questionable sources are routinely received. It may be less so for procurement that attracts bids from
smaller, more regulated markets.
Curative pharmaceuticals are produced by many manufacturing firms in nearly every country in the
world, and open bids can result in an excess of questionable offers. In small countries with weak
regulatory systems, pre-qualification can be used to develop a core of reliable suppliers of quality
products from which to draw repeatedly.
The biological medicines marketplace is much smaller than the general pharmaceutical
marketplace, and it is dominated by products that have been licensed by stringent regulatory authorities
such as those belonging to the Pharmaceutical Inspection Convention and Pharmaceutical
Inspection Co-operation Scheme and the International Conference on Harmonization of Technical
Requirements for Registration of Pharmaceuticals for Human Use. Thus, reliability of the supplier
rather than quality of the product would be the most likely focus of pre-qualification.
Vaccines and biological medicines purchasers should consider their product profiles, the availability
of suppliers prequalified by WHO, the size of the marketplace and their own objectives in deciding
whether or not to prequalify suppliers.

Another option available to help ensure quality products is to procure medicines that are approved and
registered by countries with a stringent regulatory authority. A stringent regulatory authority is defined as a
national regulatory authority participating in the International Conference on Harmonization (ICH) or the
Pharmaceutical Inspection Convention and Cooperation Scheme (PIC/S). A description of both
organizations and a list of their member countries is provided below. Limiting procurement of medicines
from manufacturers whose medicines are manufactured and registered in a country belonging to one of
these agencies can also serve as another method of product pre-qualification.
International Conference on Harmonization
The International Conference on Harmonization of Technical Requirements for Registration of
Pharmaceuticals for Human Use (ICH) is a unique project that brings together the regulatory
authorities and pharmaceutical industry experts of Europe, Japan and the United States to discuss
scientific and technical aspects of product registration. The purpose is to make recommendations on
ways to achieve greater harmonization in the interpretation and application of technical guidelines and
requirements for product registration in order to reduce or obviate the need to duplicate the testing
carried out during the research and development of new medicines. The objective of such harmonization
is to facilitate more economical use of human, animal and material resources; and to eliminate
unnecessary delay in the global development and availability of new medicines while maintaining
safeguards on quality, safety, efficacy and regulatory obligations to protect public health.
ICH Participating Regulatory Authorities (www.ich.org)
• European Union*
• Japan
• United States
* Members include: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,
Poland, Slovakia, Slovenia, Spain, Sweden, the Netherlands and the United Kingdom

Pharmaceutical Inspection Convention and Co-operation Scheme

The Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme
(jointly referred to as PIC/S) are two international instruments between countries and pharmaceutical
inspection authorities. Together, they facilitate active and constructive cooperation in the field of GMP.
PIC/S’s stated mission is “to lead the international development, implementation, and maintenance
of harmonized Good Manufacturing Practice (GMP) standards and quality systems of inspectorates in
the field of medicinal products”. This is to be achieved by developing and promoting harmonized GMP
standards and guidance documents; training competent authorities, especially inspectors; assessing (and
reassessing) inspectorates; and facilitating the cooperation and networking for competent authorities
and international organizations.
PIC/S Participating Regulatory Authorities (www.picscheme.org)
• Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France
• Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein
• Malaysia, Netherlands, Norway, Poland, Portugal, Romania, Singapore Slovak Republic
• Spain, Sweden, Switzerland, South Africa, United Kingdom

WHO has pre-qualification programs for vaccines, diagnostics, medical devices, and medicines.
Reproductive health products are included in the medicines program. The WHO Prequalification of
Medicines Program results in a list of prequalified products and manufacturers that comply with unified
international standards. The guiding principles of the pre-qualification process require that it be:
• Voluntary: Manufacturers can freely choose to participate or not to participate; however,
countries will be increasingly required to use the WHO pre-qualification process for procurement
 of donor-funded products, as it is becoming widely required by donors such as the Global Fund
to Fight AIDS, Tuberculosis and Malaria (Global Fund) and other agencies within the
Reproductive Health Supplies Coalition.2
• Legitimate: The general procedures and standards for pre-qualification are reviewed and approved
by the WHO Expert Committee system, which includes all WHO member states and governing
bodies.
• Endorsement: The pre-qualification system was presented to and supported by the 10th and 11th
International Conference of Drug Regulatory Authorities (ICDRA) meetings in 2002 and 2004.
ICDRA is a forum for drug regulatory authorities of WHO member states that strengthens
collaboration and identifies priorities for the regulation of medicines.
• Transparent: All information from the pre-qualification process is available on the WHO pre-
qualification website. The pre-qualification process for medicines and devices is open to both
innovator (patented) products and generic products. For pre-qualification to work, there must be
multiple manufacturers participating. The WHO Pre-qualification Program is efficient in
recognizing that some medicines have been through rigorous regulatory testing by credible agencies.
• Capacity-strengthening: The pre-qualification process helps manufacturers strengthen capacity. If
a manufacturer does not initially meet standards, it receives a specific report of findings and
recommendations for improvements. Pre-qualification is not a strict pass/fail process.
Manufacturers can make improvements and correct deficiencies and then resubmit and continue to
pursue pre-qualification.
Roles and responsibilities in the WHO pre-qualification process are divided as follows:
• WHO provides technical support, scientific support and a guarantee that international norms and
standards are incorporated and adhered to throughout the entire pre-qualification process
(including assessment, inspection and quality control).
• For medicines, the assessment of dossiers and inspection of manufacturing sites are
primarily done by qualified personnel appointed by WHO from the national regulatory
authorities of the Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-
operation Scheme (PIC/S, http://www.picscheme.org) and the International Conference on
Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use
(ICH, http://www.ich.org) member countries. WHO also arranges for site inspection of
manufacturers to assess compliance with current good manufacturing practices (cGMPs). A
representative of the national regulatory authority traditionally accompanies the inspection team
for the site inspection.
• Condom and intrauterine device pre-qualification is overseen and implemented by the UNFPA on
behalf of WHO and is supported by independent technical experts with in-depth knowledge and
expertise in the manufacturing and quality assurance (QA) issues related to these products.
WHO pre-qualification systems cover these QA activities:
• Development, establishment and promotion of norms and international standards to ensure
safety and QA for products.
• Assistance to countries in building national regulatory capacity through networking, training and
information sharing.

2
The Reproductive Health Supplies Coalition is a global partnership of public, private and non-governmental organizations dedicated to ensuring that all
people in low- and middle-income countries can access and use affordable, high-quality supplies to ensure their better reproductive health. For more information, see
http://www.rhsupplies.org/.
• Provision of expertise and technical assistance through various activities in the areas of QA,
regulation and legislation, safety and efficacy.
• Provision of guidance in regulation, safety and QA.
• Assessment of data from manufacturers regarding the quality, safety and efficacy of their
products, including details about the purity of all ingredients used in manufacturing, data about
finished products (such as information about stability) and the results of in vivo bioequivalence
tests (clinical trials conducted in healthy volunteers).
• Performance of inspections at the manufacturing sites and assessment of working procedures for
compliance with WHO cGMPs.
• Shipment of products to professional control testing laboratories for analytical verification
of quality.
• Re-qualification of all medicines after 1 to 3 years and at a minimum every 5 years.
• Performance of random quality control testing of pre-qualified medicines that have been supplied
to countries.
• Investigation and resolution of complaints.
• Monitoring of supplier quality and taking corrective action if standards are not maintained.
Technical specifications are one of the most important elements of procurement:
• They provide detailed information to bidders about the goods to be purchased.
• They are the benchmarks against which the purchaser will judge the technical responsiveness of bids.
• They form the basis for the contractual obligation of the supplier to the purchaser.
• They are the criteria against which the purchaser will determine the acceptability of specific goods
prepared by the seller for shipment.
Technical specifications must be clear, accurate and complete; otherwise, the procurement will not be
able to proceed on schedule and the entire procurement process may need to be cancelled:
• Questions raised by bidders can force the procuring entity to push back the deadline for bid
submission to accommodate amendments to the bidding documents.
• A significant number of bidders may misunderstand the requirements and quote items that do not
meet program needs, forcing the procuring entity to reject all bids and re-start the process.
• It may be impossible for the evaluation committee to correctly identify a winning bid, and if one is
chosen for any other reason than what is specifically stated in the bidding documents, bidder protests
may result, which can create delays in the procurement process.
• Goods that do not meet program needs may be delivered because the supplier is under no obligation
to supply goods other than what is specifically described in the bidding documents.
Under any of the above scenarios, time and resources will be wasted: at a minimum, the delivery schedule
will be delayed. Further up the consequence scale, needs will not be met, legal problems may ensue, mis-
procurement may be declared and funding may be lost.
In addition to specifications that are clear, accurate and complete, public sector procurement requires that
specifications be prepared in a way that will encourage maximum competition. They must be “product
neutral”. In other words, they must use generic terms, relative characteristics and performance
requirements rather than brand names and superficial descriptions. If there is no way to avoid stating
a brand name, it must be followed by “or equivalent”. Non-functional requirements such as colour and
exact dimensions must have strong justification and may not be used simply to eliminate all but a specific
brand.
Specifications must be written in industry-standard vocabulary so there is no question about what is
required. Medicines must be identified by the International Non-proprietary Name (INN) or generic name
and described in scientific terms with reference to a specific pharmacopoeia. Medical devices can be
described according to a system developed in the European Community which is used in the US and
some other countries as well, the Global Medical Device Nomenclature (GMDN). The use of standard
nomenclature eliminates misunderstanding and miscommunication due to variation in the use of terms
(in English) by different countries and through translations from other (main) languages.
Specifications are not just about the physical product in terms of technical and performance characteristics,
size, units and quantity, but should also include a description of:
• Intended use
• Packaging and marking
• Packing and shipping marks
• Regulatory requirements
• Standards and required certifications
• Quality assurance criteria including detailed tests required
• Acceptance criteria
• Detailed activities to be performed by the supplier
• Documentation
Considering the depth of knowledge and specialized information required for writing effective,
unambiguous procurement specifications, it is a job best done by a person with specific technical expertise.
Line Directors and end users are aware of their requirements from the standpoint of using a product, but
they are not usually the best authority on how the product is put together. In addition, they may not be
familiar with the scientific terms needed to accurately describe it.
The role of procurement staff in specification development includes gathering information, facilitating
communication between technical personnel and end users, consulting with the technical expert, and
placing the completed specification in the bidding documents. Actually writing specifications is not a
job for procurement officers.
Specifications that have been developed in the past and preserved in a file or database for future use are
very convenient; however, a technical expert should be asked to review them to make sure they accurately
and completely reflect the current requirement before they are adopted for use in a procurement action.

The following checklist can be used as a guide in preparing or reviewing a medicine technical
specification to ensure that all of the key components of a medicine specification have been
included in the bidding document. It is always beneficial to have any technical specification reviewed
before release by a technical expert as discussed above.
Checklist of Elements for Inclusion in Specifications for Pharmaceuticals and Medicines
 Description: Generic name (INN); Type of product; Intended use
 Formulation (medicine content): Strength of Active Pharmaceutical Ingredients(API)
 Registration number: Number issued by Drug Regulatory Authority
 Drug Manufacturing License Number: Number issued by Drug Regulatory Authority
 Presentation: Dosage form; Tablets, Pills, Injectables, Cream, Solution etc.
 Filling Volume (as applicable): milliliter (ml), gram (gm)
 Identification (markings): Marking/labeling of product
 Primary Packaging: Materials and description; Package layout/dimensions; Markings; Special
labeling/logo (if desired)
 Over packing (cartons): Materials and description; Markings
 Exterior Packing (for shipping): Materials and description; Markings
 Shelf Life: In months or years; Stability/storage temperature; Minimum remaining shelf life
 upon receipt in warehouse
 Printed Materials: Language; Patient inserts; Physician inserts; Special instructions
 Regulatory Requirements
 Quality Assurance Requirements: Pharmacopoeia standard (if applicable)
 Documentation: Test data; Certificate of Analysis; GMP certificates
 Quality Compliance Provisions: Pre or Post shipment inspection (of physical attributes);
Pre or Post shipment sampling and testing (for analysis of suspect products)

Oral & Injectable Medicines

Oral medicines come indifferent forms i.e. tablets, pills, capsules, syrup, granules or powder for
suspension etc. Most oral tablets / capsules are packed in blister packages with a cardboard over-pack.
Blister packing provides good protection from adverse environmental conditions. Syrups or powder
for suspension come in bottles.
Injectable medicines come in several formulations and packing, e.g. single or multi-dose vials or
ampoules. Generally the shelf life ranges from two to five years at room temperature (15-30° C).
The labeling criteria listed below are comprehensive and useful not just in identifying the product, but
in managing it successfully within the logistics system. However, not all medicines are procured with
such extensive labeling specifications. If any of the labeling criteria listed below are not applicable,
mark the appropriate box in the N/A column. Product procurement specifications should be
consulted prior to finalizing the inspection criteria.
  
  
  
  
  
  
  
  

  
  
  
  
  
  
  
  
  
  
  

  
  
  

  
  
  
  
  
  
  
  
  
  
  

  
  

  
  

  
  
  
  
  
  
EXPLANATORY NOTES
The segregated core lists presents the list of minimum medicine needs for a basic health‐care system,
listing the most efficacious, safe and cost‐effective medicines for priority conditions. Priority
conditions are selected on the basis of current and estimated future public health relevance, and
potential for safe and cost‐effective treatment.
The square box  symbol is primarily intended to indicate similar clinical performance within a
pharmacological class. The listed medicines are the example of the class for which there is the best
evidence for effectiveness and safety. In some cases, this may be the first medicine that is licensed for
marketing; in other instances, subsequently licensed compounds may be safer or more effective.
Where there is no difference in terms of efficacy and safety data, the listed medicine is the one that is
usually available at the lowest price, based on international drug price information sources. Not all
square boxes are applicable to medicine selection for children. Therapeutic equivalence is only
indicated on the basis of reviews of efficacy and safety and when consistent with WHO clinical
guidelines.
The  symbol indicates that there is an age or weight restriction on use of the medicine; details for
each medicine can be found in Table 1.
The © symbol signifies that there is a specific indication for restricting its use to children.

An entry on the Essential Medicines List does not ensure pharmaceutical quality. It is the
responsibility of the relevant procurement authority to ensure that each product is of appropriate
pharmaceutical quality (including stability) and when relevant, different products are
interchangeable.
Medicines and dosage forms are listed in alphabetical order within each Chapter and there is no
implication of preference for one form over another. Standard treatment guidelines should be
consulted for information on appropriate dosage forms.
Table 1: Medicines with age or
weight restrictions

159
 EML for BHUs

160
EML for BHUs

161
 EML for BHUs

162
EML for BHUs

163
 EML for BHUs

164
EML for BHUs

165
 EML for BHUs

166
EML for BHUs

167
 EML for RHCs

168
EML for RHCs

169
 EML for RHCs

170
EML for RHCs

171
 EML for RHCs

172
EML for RHCs

173
 EML for RHCs

174
EML for RHCs

175
 EML for RHCs

176
EML for THQs

177
 EML for THQs

178
EML for THQs

179
 EML for THQs

180
EML for THQs

181
 EML for THQs

182
EML for THQs

183
 EML for THQs

184
EML for THQs

185
 EML for THQs

186
 EML for THQs

225

226

227

228

229

230

231

232

233

234

235

236
237
238

239
240

241
242
243
244
245

187
 EML for THQs

246
247
248
249
250
251

252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271

272

188
 EML for THQs

273

274

275

276

189
 EML for DHQs

190
EML for DHQs

191
 EML for DHQs

192
EML for DHQs

193
 EML for DHQs

194
EML for DHQs

195
 EML for DHQs

196
EML for DHQs

197
 EML for DHQs

198
EML for DHQs

199
 EML for DHQs

200
EML for DHQs

201
 EML for DHQs

202
EML for DHQs

203
Appendix III:

TEL: 9201139
9201140
FAX: 9201142
DIRECTOR GENERAL HEALTH-PUNJAB
24 - COOPER ROAD, LAHORE - 54000

NO.____________________/PA
Dated Lahore the _____________2014
To

Dr. Muhammad Tariq

Country Director,
USAID DELIVER PROJECT, Lahore.

SUBJECT: FINALIZATION OF PROCUREMENT MANUAL FOR MEDICINES

AND SUPPLIES DoH, GOVERNMENT OF THE PUNJAB.
th
With reference to USAID DELIVER Project letter dated 6 November,
2014 on the subject cited above.

Kindly find enclosed Procurement Manual for Medicine and Supplies

DoH, Government of the Punjab duly endorsed by Department of Health Punjab for
further processing at your end.

The Health Department, Government of the Punjab highly appreciates

the efforts and support of USAID DELIVER Project for developing Procurement
Manual for Medicines and Supplies. I am confident that this manual will certainly
contribute in improving and strengthening procurement process of essential
medicines and supplies within the Department of Health.

DIRECTOR GENERAL HEALTH SERVICES,

PUNJAB
CC

1. Secretary, Government of the Punjab, Health Department, Lahore.

2. Dr. Nisar Ahmad Cheema, Technical Advisor, USAID DELIVER Project, Punjab.
3. Maj. (Rtd.) Iftikhar Bin Niaz, Senior Provincial Logistics Manager USAID
DELIVER Project, Lahore.

205
accountee Legal banking term that describes the party—usually, the buyer—who is
ultimately responsible for paying an amount guaranteed through a commercial
letter of credit.

accrued Accumulated through growth, over time; for example, accrued penalties, accrued
income.

acceptable quality level Used in QA to classify defects into critical, major, and minor categories.
(AQL)
advising bank In documentary credits (letter of credit)—a commercial bank that notifies a
beneficiary and/or transmits documents without assuming a financial obligation.

agent Independent contractor authorized by a manufacturer to promote and sell the

manufacturer’s products within a designated geographic area. Often an agent will
contract with several manufacturers to represent non-competing products.
Also, describes an independent contractor or agent of an organization hired to
inspect goods.
Also, an independent contractor or agent hired to carry out procurement tasks.

airway bill Shipping document issued by airlines and air-freight carriers when cargo is
loaded on an aircraft. Includes a description of the commodity being shipped,
shipping instructions, terms and conditions of the shipment, and applicable
transportation charges.

applicant Legal banking term that describes a party—usually, the buyer—asking the bank
to issue a commercial letter of credit in favor of a specified beneficiary—usually,
the seller. After the letter of credit is issued, the applicant becomes the accountee.

arbitration Process to avoid costly and lengthy litigation when impartial individuals help
resolve a disagreement between two or more parties, called arbitrators. The ICC
maintains a court of arbitration, as do many individual countries.

authorized person Any person who has been granted the power to authorize a transaction, or
otherwise commit a procuring agency.

award notification Notification from the purchaser to the successful bidder recommended for a
contract—usually based on the lowest evaluated bid.

batch Manufacturing term meaning a single, uniform, and homogeneous quantity

produced from one compounding formulation, in one manufacturing and
production operation; and that has received entirely the same processing
treatment. Used interchangeably with (manufacturing) lot.

batch number Identification number assigned to a manufactured batch; see lot.

beneficiary Legal banking term that describes the party who is entitled to collect funds
 guaranteed by a commercial letter of credit upon presentation of specified
documents—usually shipping and QA documents.

bid Procurement term describing a written offer for a quantity of goods, works, or
services, at a stated price, based on a technical specification and specific terms
and conditions. Bids are submitted to an intending purchaser by an intending
seller, in response to an invitation to bid.

bidder Intending seller or supplier who submits a bid offering goods or services in
response to an invitation or request for bids and offers.

bid documents Papers constituting a bid; the intending purchaser specifies the requirements.

bidding documents Written description and set of terms and conditions for an intended purchase
and that the intending buyer circulates to prospective sellers.

bid offer Procurement term meaning an offer for goods or services

submitted or received in response to a specific invitation to bid.

Bid Evaluation Committee established by an authorized person, or by the federal procurement

Committee cell of a ministry, to evaluate bids and quotations for procurement.

Bid Opening Committee established by an authorized person, or by the federal procurement

cell of a ministry, to open bids and quotations for procurement.
Committee
bid security Financial instrument used to guarantee compensation to the prospective buyer
for inconvenience and expense if a winning bidder rescinds his offer after the
bid is closed and an award is made to him. Each bidder provides an amount
stated in the bidding documents with their bid submission; bid security is
refunded promptly to all losing bidders.

bill of lading (B/L) Shipping document issued by a carrier—usually an ocean freight line—to a
shipper; it is a written receipt for the goods, describes the conditions on which
transport is made, and includes a written commitment to deliver goods at a stated
destination to the lawful holder of the B/L.

boat note Report of a marine insurance survey conducted on board an

incoming ship to assess a consignment’s loss or damage.

boilerplate Selected text or part of a document that is repeatedly used without change.

buffer stock Term used in supply systems to describe extra quantities of stock kept on hand
to cover unanticipated shortages—25% above expected usage is common.

buyer Party to a purchase transaction who pays a seller in exchange for goods; the
buyer does not have to be the recipient or consignee of the goods.

carrying and forwarding Licensed professional agent appointed by an importer to clear its consignment
agent (C and F) coming from abroad through the port and customs authority.

carrier (carriage) Any person who, in a contract of carriage, performs or procures the performance
of carriage by rail, road, sea, air, inland waterway, or a combination of these
transport modes.
census data Statistics gathered about individuals in a national population; primarily, numbers;
used by public health programs to estimate annual commodity requirements and
to determine the quantities that need to be purchased to meet these
requirements.

Certificate of Free Sale See Lot Release Certificate.

Certificate of Inspection Document often required with shipments of perishable or other goods;
certification attests to the good condition of the merchandise immediately prior
to shipment.

Certificate of No See No Objection Certificate.

Objection
Certificate of Origin Shipping document certifying that the goods in a shipment were produced in the
stated country of origin.

claim bill Bill prepared by an insured party to file its claim for compensation.

Clean Report of Findings Certificate issued by an inspection company stating that no discrepancies were
found between the specified criteria and the product as prepared for shipment.
Pre-shipment inspection at the manufacturer’s facility is recommended for most
health sector goods. Some countries require routine (cursory) visual inspections
at the port of loading for all goods entering the country.

coercive practice Impairing or harming, or threatening to impair or harm, directly or indirectly,

any party or the property of the party, to improperly influence the actions of the
party.

cold chain System to maintain perishable medicines and vaccines at low temperatures from
the time of manufacture until given to a child or adult. All vaccines and some
medicines are sensitive to too much heat; some are sensitive to freezing.

collateralize Banking term meaning that money (or other security) is deposited or otherwise
made available to cover a future payment; for example, letters of credit must be
collateralized.

collusive practice Arrangement between two or more parties to achieve an improper purpose,
including to improperly influence the actions of another party.

commercial bank For profit bank that provides services to the public.

commercial invoice Shipping document, issued by the seller, that identifies the buyer and includes a
description of the goods, agreed-to price, delivery and payment terms, shipping
date, mode of transport, and assigned invoice number.

commodity Commonly used to describe consumable products.

competitive bidding Procurement process in which clearly stated product specifications and contract
requirements are issued to multiple suppliers to solicit pricing and performance
responses (bids). The purpose is to generate competition among several
suppliers, which, theoretically, elicits the lowest possible prices. Several types of
competitive bidding procedures include International Competitive Bidding,
Local Competitive Bidding, and Limited Competitive Bidding; and Request for
 Quotation.

conditional discount; Potential suppliers sometimes offer a discount by bidding on two or more
cross discount contracts, simultaneously; the discount will apply only if two or more contracts
are awarded to the supplier.

consignee Used in shipping to describe the party to whom something is entrusted; e.g., the
ship to party.

confirming bank In documentary credits (letter of credit)—a commercial bank that promises to
pay the beneficiary if the issuing bank defaults.

consignment Shipment with part or whole of the contracted quantity of (imported) goods.

context Circumstances that surround and influence—as in program context and market
context.

contract Agreement entered into by two parties for executing a certain activity; e.g., sale
and purchase, construction, providing services, etc.

contractor Party entered into a contract with the purchaser to supply certain goods or
perform certain works or provide certain services.

convertible currency Currency that can be quickly bought and sold for other currencies; commonly
traded internationally.

correspondent Relationship between two banks when they formally agree to perform services
relationship for each other.

corrupt practice Offering, giving, receiving, or soliciting, directly or indirectly, anything of value
to improperly influence the actions of another party.

coverage Health sector program term for the estimated number of individuals actually
served, as a percentage of the target population.

criteria Specific points, standards, qualities, and requirements against which something
is judged.

debarment Shut out, exclude, or prohibit (a firm) from participating in future competition
for contracts.

defects—critical, QA terms used to evaluate a product’s appearance, packaging, and packing using
visual examination and comparison, with a precise description of requirements;
major, minor results in a classification of any defects, according to importance. Published
standards specify how many defects are allowable in a particular lot size, under
different assumptions. Used in condom procurement.

defect, critical Defect that, based on experience and professional criteria, makes a product
dangerous or not viable for its intended use.

defect, major Defect that may make the product more difficult to use, but does not have the
safety and efficacy risk associated with a critical defect.

defect, minor Defect that is unlikely to affect usability, but represents a departure from the
specifications.
determination Decision that has been reached. For example, World Bank’s no objection
determination based on a review of draft bidding documents.

demurrage charges Charges assessed against the consignee by a carrier, shipping agent, or customs
agent for delay beyond the time allowed or agreed upon for unloading and/or
removal of goods from port facilities.

development partner Financing institutions extending credits for government development programs;
for the Health and Population Sector Program (HPSP), it is the World Bank
(International Development Association).
direct contracting Procurement method used when price and terms are settled with one chosen
supplier without asking for other bids (e.g., without competition).

direct purchase World Bank term to mean purchase from a pre-selected source without
competition; for example, when there is only one manufacturer of a required
product.
Sometimes used in government health programs to mean purchasing vaccine
and medicines directly from a manufacturer rather than through UNICEF or
another third party.

discrepancy Used in banking and trade to mean lack of agreement with stated requirements
and/or documents.

documentary Being, consisting of, or contained exclusively in documents.

evidence
domestic preference World Bank term for procurement documents that describe a competitive
allowance advantage, expressed as a percentage that is sometimes given to local
manufacturers of goods competing for contracts against international sources.

medicine formulary Sub-set of essential medicines keyed to specific levels of healthcare (facility).

duties Tax charged by a government, especially on imports.

eligibility (criteria) Not excluded from competing for contracts, in general, by reason of nationality,
debarment, lack of regulatory approval, etc.

entity Business and legal term describing something that exists and functions as a
separate and distinct body; for example, a corporation, a ministry of health, a
committee.

eligible bid Bid that meets the basic eligibility criteria in a preliminary screening and then
goes forward for evaluation. Mandatory eligibility criteria may include
registration as a company, possession of a business license, etc. A bid may also
specify that a bid security for a specified amount and in a specified format be
enclosed with the tender. If there is no bid security, the bid is non-compliant and,
therefore, not eligible to go forward to the evaluation stage.

Essential Medicines List Model list of approximately 300 medicines that provide for the health needs of
(generic: essential the majority of the population.
medicines list)
estimate of procurement Judgment or approximate calculation of future commodity needs; quantification
is based on a forecast of use, plus buffer stock requirements, minus existing
requirements stock and undelivered purchases.

evaluated cost Offered price adjusted for corrections, discounts, domestic preference, and
usage.

evaluation criteria Basis for judgment—announced in bidding documents—that will be used to

select the winning bidder.

expiry date Supply term for a date established by the manufacturer that appears on a
medicine or vaccine; beyond which the manufacturer will not guarantee the
potency, purity, uniformity, or bio-availability of the product.

financial instrument Legal document that conveys financial commitment, such as a bond.

financial powers Authority to spend, given to an officer when performing his duties. In most
government systems, the amount of expenditure officers may authorize is related
to the level of their responsibility, as well as their seniority.

forecast Term used in public health programs to describe a rational projection of future
commodity demand, based on population, birth rate, and past consumption data.

force majeure Event or affect that cannot be reasonably anticipated or controlled.

fraudulent practice Any act or omission, including a misrepresentation, that knowingly or recklessly
misleads, or attempts to mislead, a party to obtain a financial or other benefit, or
to avoid an obligation.

generic Applicable to all of a kind; common, not protected by trademark or patent; used
extensively in medicines procurement.

general procurement Annual notice placed in United Nations publication, Development Business, about
scope of anticipated International Competitive Bidding (ICB) procurement to
notice be financed by World Bank loans; amount and purpose of loans; and name
and address of borrower’s agency responsible for procurement.

specific procurement Invitations to bid (or pre-qualify) for specific contracts advertised in
notice newspapers, etc.

good manufacturing Organized set of activities and performance standards covering personnel,
practice (GMP) premises and equipment, animal quarters and care, production, labeling, lot
processing records and distribution records, QA, and quality control. A facility
following GMP can be relied on to consistently produce good quality products
that conform to established specifications, because it maintains high standards of
performance and adheres to written procedures. Used mainly in pharmaceutical,
vaccine, and medical device production.

guarantor Person or firm that guarantees to pay for someone else’s debt if they default on
a loan or other financial obligation.

Harmonized Tariff International codification of merchandise for classifying goods for tariffs and
System (HTS) Code customs. The HTS assigns a 6-digit code for general categories of goods. Countries
that use the HTS are allowed to define commodities at a more detailed level than 6
 digits, but all definitions must be within that 6-digit framework.

implementation Defined procedures and milestones associated with a project.

requirements
implementing agency Agency responsible for carrying out project activities and monitoring progress
toward defined milestones, goals, and objectives.

Incoterms International rules for interpreting the most commonly used terms in foreign
trade; published by the ICC.

indent Request from the end user for certain goods, works, or services to be purchased.

inspection agent A party (or organization) appointed by the purchaser to inspect certain goods
works or services.

inspection criteria Instructions and specifications against which an inspection agent will examine a
shipment, usually before it leaves the manufacturer’s site.

inter-lineation Notations written between the lines—of original bidding documents.

International Nongovernmental organization that serves world business by harmonizing trade

practices, formulating terminology, and establishing guidelines for importers and
Chamber of exporters.
Commerce (ICC)
International Competitive Procurement method initiated with a widely advertised notice of the bidding
Bidding (ICB) opportunity. Sealed bids are required, based on clearly stated product
specifications and performance expectations. Submissions are evaluated on their
technical, commercial, contractual, and financial merit, with awards going to the
supplier that makes the most advantageous and cost-effective offer. All bids are
final and no negotiation is allowed, except for minor contractual points, after a
winning bid is selected. The ICB provides all eligible prospective bidders with
an equal opportunity to participate in the competition. Also known as open, or
unrestricted, bidding.

international Used by the World Bank and others to describe a procurement process that relies
on informal quotations and catalog pricing to establish a minimum level of
shopping competition; see Request for Quote.

inventory Stock of goods available in a store or warehouse or go-down on a particular date.

invoice Document showing a short description of the cargo and its unit and total price;
see commercial invoice.

joint venture Business enterprise when two or more companies enter into a temporary
partnership.

labeling Used for pharmaceuticals, vaccines, and medicines to describe written text on
packaging, boxes, and accompanying leaflets. For products that are regulated by
a government authority, labeling is an important part of the product; changes
must be approved.

lead time Time interval needed to complete a procurement cycle. It begins when the need
 for new stock is recognized and ends when that stock is received and available
for issue. Alternate definition: Time from order to delivery; e.g., manufacturing
and shipping time.

letter of commitment Committing funds for payment to a supplier against a contract.

letter of intent Written expression of the purchaser made to the supplier to issue an award in
favor of the supplier.

letter of credit Arrangement by banks for settling commercial transactions; specifically, a

written promise by a bank given to the seller, in accordance with the instructions
(and cash deposit) of the buyer to pay up to a given sum of money, within a
prescribed time limit, when and if the seller presents specified documents that
give evidence of his performance.

licensed product For pharmaceuticals, vaccines, and medicines, licensing by the regulatory
authority of both the importing and exporting country implies a quality standard
based on verified GMPs, QA data, and appropriate oversight.

liquidated damages In sales contracts, specified sum to be paid to the purchaser should the seller
default on its obligation—usually pertaining to a delivery schedule.

Limited International Procurement term describing the bidding process that limits participation to
Bidding (LIB) international and domestic suppliers that are pre-qualified, pre-selected, or
short-listed by the purchaser. See restricted bid and pre-qualification

lot Supply term that can be used in two ways: production lot (see batch manufacturing)
and shipping lot.

lot or batch number Manufacturing term that describes the series of numbers or letters or both that
are used to record production and control of a single, uniform, and
homogeneous quantity of medicines, chemicals, or biological produced from
one formulation; in one manufacturing and production operation, and which
had exactly the same processing treatment.

Lot Release Certificate Regulatory term describing a certificate issued by the NRA of the country of
manufacture that states the (manufacturing) lot number being shipped has been
tested by the government’s laboratory, or checked in some other way; was found
to conform to the regulations of the country of manufacture and is released for
sale. In some cases, this document may be a Certificate of Free Sale.

lowest evaluated bid Bid (1) most closely conforming to evaluation criteria and other conditions
specified in the bidding document; and (2) having the lowest evaluated cost.

manufacturer’s Direct employee of a manufacturer with responsibility to promote the use of,
representative provide information about, and sell the manufacturer’s products. In some cases,
the representative also facilitates importation. Sometimes the term agent is used
for the same relationship.

margin of preference See domestic preference.

marking Used in packing and shipping to apply numbers, letters, labels, tags, symbols, or
colors for handling and identification during shipment and storage.
material deviation Used in evaluating bids to describe a significant and unacceptable difference
from the requirements stated in bidding documents. More precisely, a material
deviation is one that affects, in any way, the price, quantity, quality, or delivery
of the goods, as required in the bid documents; or limits in any way the
responsibilities, duties, or liabilities of the bidder or any rights of the purchaser.

merit point system Numerical system used to evaluate and compare offers or bids. Points (based on
a total of 100) are assigned according to how well an offer is judged to match
evaluation criteria and preferences—which the purchaser states in the original
bidding documents—and its relative standing in the range of prices offered.

middleman Independent broker who purchases product from a manufacturer or wholesaler

and resells the product. This adds to the final cost of the product because the
middleman’s revenue from the transaction is the difference between his
acquisition and holding cost and his sales price. Purchasing vaccines,
pharmaceuticals, and medicines through middlemen can increase the risk of
receiving poor quality, mishandled, or counterfeit product unless shipments are
made directly from the manufacturer to the purchaser, including appropriate
original documentation.

National Competitive Procurement method that follows the same format as International Competitive
Bidding (NCB) Bidding, but is limited to local participants.

National Control See National Regulatory Authority. Both terms are currently in use.
Authority (NCA)
National Control Laboratory advisory to the National Control Authority.
Laboratory (NCL)
national dailies Widely circulated daily newspapers in the native or other language.

National Regulatory Independent government entity responsible for establishing procedures to

Authority (NRA) ensure that medicines—and biological products—intended for use in the
country are safe, potent, and effective.

negotiated (document) International trade term meaning that the title to the goods has been transferred
to a new owner by delivery; normally, requires that funds must be transferred
from the buyer to the seller.

negotiable shipping Document establishing ownership of goods and, therefore, has monetary value;
document usually, an ocean B/L.

nongovernmental Organization that is not part of the structure of a government, but can perform
organization (NGO) complementary activities.

non-responsive Does not meet basic requirements; for bids, this would include critical items
including signatures, bid security, completeness, agreement to terms and
conditions, etc.

No Objection Certificate Shipping/import document sometimes required by a country’s customs, tax, or

other laws; certifying that domestic manufacturers of pharmaceuticals,
biological, and medical devices have no objection to the import of a competing,
similar, or identical product.
no objection World Bank procurement term to describe the Bank’s approval of draft bidding
determination documents and recommendation for award.

obstructive practice Deliberately destroying, falsifying, altering, or concealing evidence material to

the investigation; or making false statements to investigators, in order to
materially impede an investigation into allegations.

offer Used interchangeably with bid and proposal.

open bid Formal procurement procedure when bids are accepted from any interested local
or international source for the required product.

packaging Product’s primary containers and coverings. For injectables, vials and ampoules
are the primary packaging; while boxes and bags containing several, up to 100,
vials or ampoules are secondary packaging. For tablets, blister packs or tins may
be the primary packaging.

packaging for bidding For bidding purposes, a term used by the World Bank and others to organize
very large, diverse schedules of goods to be purchased into groupings of like-
items.

packing Assembling of items into a unit for shipment; carton, over-wrapping, and
insulation for protecting products against damage or deterioration during
shipment.

packing requirements Identifies how to pack products to withstand the handling and climatic conditions
during transit. Heat-sensitive pharmaceuticals and vaccines require instructions on
the specific temperature range in which the product must ship and whether it can
or cannot be frozen; as well as the type of packaging and strength of packaging
material to be used and the inclusion of cold chain monitoring devices.

packing list Schedule showing detailed packing information, including items and totals,
number of units or items per box or crate, total number of boxes or crates with
individual identification numbers, shipping marks, total volume of the cargo,
weights and dimensions per box or crate, etc.

patent Exclusive rights granted by a government to an inventor to manufacture, use, or

sell an invention for a specified number of years. U.S. drug patents are usually
for 17 years.

payment terms Description of how, where, and when payment will be made; for example, letter
of credit, cash in advance, open account.

Performance Security Procurement term describing the financial instrument used to guarantee
compensation to the buyer for inconvenience and expense if the seller does not
perform; i.e., does not produce and ship the contracted goods or provide the
contracted services within the stated period. The seller puts up their own funds,
often through a bank or an insurance company, to be held in reserve until the
contract terms have been met.

pharmacopoeia Book, usually published under the jurisdiction of the government and containing
a list of medicines, their formulas and methods for making medicinal
preparations, requirements, and tests for their strength and purity; and other
related information.
port of entry The port—including airport and land port—designated in the bid and
mentioned in the B/L or air waybill (AWB), where the consignment(s) under a
contract are to be delivered.

port of loading The port—including airport and land port—designated in the bid and
mentioned in the B/L or AWB, where the consignment is loaded onto the ship
for onward transportation to the port of entry.

pre-qualification (of Pre-approving suppliers for participation in bids, based on a judgment of

supplier) reliability, technical competence, and financial stability.

pre-qualification (of Pre-determining that a specific product—usually a pharmaceutical or vaccine—

product) of a specific manufacturer meets stated requirements and can be considered for
purchase contracts in the approving country. Licensing by the NRA in the
purchasing country automatically confers pre-qualification status.

pre-shipment Inspection of the contracted goods, by or on behalf of the purchaser, to ensure

its conformity to the bid specification; this is done at the premises of the supplier
inspection or manufacturer before the goods are shipped.

prior review World Bank terminology for its right to review and approve certain procurement
decisions of a borrower before they are acted upon.

procurement Formal process to acquire goods, works, or services.

procurement agent Individual or organization paid to act on a purchaser’s behalf.

procurement entity Body functioning as the purchaser in a commercial transaction (see entity).

procurement package Goods of a similar nature that have been grouped together for procurement,
under a single contract, for efficiency.

procurement plan Package-wise schedule for purchasing activities, including description of goods
to be purchased, budget amount and source of funds, time period in which
goods will be procured, and the method of procurement; separate from
Operational Plan.

procurement Complete description of the product to be purchased, including technical

attributes—especially manufacturing and quality assurance norms—program
requirements specifications (including packaging, packing), shipping terms, payment terms,
port of delivery, delivery date, quantity, documentation, and any other relevant
detail about the expected purchase.

procurement Agreements and actions of a buyer and a seller around a specific purchase;
usually documented and legally binding.
transaction
procurement unit Officer or team designated by a procuring agency to procure on its behalf.

procuring agency Program with responsibility to procure.

performa invoice Abbreviated invoice prepared by a supplier in advance of a sale or shipment.

Includes a close approximation of weight and value of the shipment and other
relevant data. Used in some international procurement situations to support the
purchaser’s request to government authorities for import permits and foreign
 exchange. It is not binding on the seller until the order is confirmed.

proposal Procurement term that describes an offer to supply goods or services, made in
response to a specific RFP. Less formal in structure and process than sealed
bidding (ICB, NCB, and LIB).

proprietary goods Goods manufactured and sold only by a particular firm, usually under patent.

protocol Describes a formal plan and specific methods for inspecting and testing goods.

public fund As defined in PPRA Ordinance 2002, “public fund” means the Federal
Consolidated Fund and the Public Account of the Federation and includes
funds of enterprises which are owned or controlled by the Federal Government.

Public Procurement Autonomous body that prescribes regulations and procedures for public
Regulatory Authority procurements by the provincial government-owned, public sector organizations;
to improve governance, management, transparency, accountability, and quality
of public procurement of goods, works, and services.

public sector supply Organization that contracts annually with manufacturers for large quantities of
service products; it then supplies them in smaller quantities to individual clients in the
public sector on a reimbursable, but non-profit basis. UNICEF and UNFPA are
examples.

pull system Used in distribution systems to indicate that peripheral levels request deliveries
of specific kinds and amounts from a central level.

procurement office Offices that will undertake and accomplish the procurement of goods under the
HPSP.

push system Term used in distribution systems to indicate that a central authority is sending
goods to lower levels, based on its calculations of need, rather than specific
requests from the lower levels; i.e., it pushes goods to the lower levels.

qualification (criteria) Attribute that must be met or complied with and that fits a competing firm for
performing a specific contract.

qualified remarks In international shipping, written list of deficiencies or damage noted by

inspecting agent.

quality assurance (QA) Combination of organized activities that demonstrate a product meets quality
criteria and specifications for its intended application. QA within the
manufacturing organization provides confidence to management; outside the
manufacturing organization, it gives the purchaser confidence. In the context of
pharmaceuticals, vaccines, and medicines, it is typically done before a shipment
leaves the manufacturer’s facility and/or, before the product is released for use
in a country.

quality control Manufacturing term that describes internal operational techniques and activities
to monitor the manufacturing process and eliminate the causes of unsatisfactory
performance. Some quality control and QA actions are interrelated.

registration Used in regulating pharmaceuticals and vaccine; exact usage varies from country
to country; often synonymous with licensing, but it can mean that the particulars
 about a shipment are recorded as it enters a country.

Request for Proposal Commonly used for bidding documents when procuring consultancy services.
(RFP)
responsive bid Bid that meets the technical requirements of the bidding document in the
evaluation stage. Technically, non-responsive bids do not go forward to the
financial evaluation stage.

reservations (to) Negative findings, exceptions, disagreements, and lack of approval.

restricted bidding Bid procedures other than open competitive bidding; refers to bidding based on
a shortlist of suppliers, on pre-qualification, or on the various methods of
procurement concerned with sole suppliers or a limited number of suppliers.

retention money Certain percentage of the bill money payable to a contractor for the contracted
goods works or services; it is held back and retained by the purchaser and paid
after the contractor fulfills certain obligations.

revenue funds, budget Funds, budget from a government’s activities—usually tax collection—rather
than from development loans or grants, such as HNPSP.

safeguard Protect, guard, and keep safe.

sampling Process of selecting a small, representative quantity of materials from a much

larger batch, shipment, or consignment. Inspecting this representative sample
allows judgment about the quality of the entire batch or shipment of products
without inspecting each individual unit.

Schedule of Requirements Part of a bidding document that describes the quantity of goods and expected
delivery time.

sealed bids Procurement process when formal bids are submitted in sealed envelopes and
held unopened until an appointed date and time; then opened and read out in
public with bidders in attendance. See International Competitive Bidding, Local
Competitive Bidding, and Limited International Bidding.

securities Something given or deposited as surety for fulfilling a promise or obligation, the
payment of a debt, etc.

seller Party to a contract who offers goods, commits to seeing that the buyer receives
them, and (usually) receives payment from the buyer. The seller is not necessarily
the supplier of the goods.

shelf life Length of time designated by the manufacturer that a product can be stored
without affecting its usability. Shelf life varies from product to product;
medicines vary from 3–5 years. After the expiry date, the potency, purity, and
bio-availability of active ingredients are not guaranteed; they must be discarded
and destroyed.

shipping marks Mark or written inscription that the purchaser instructs the seller to paint or
write visibly and legibly on the outer side(s) of the boxes or crates so the
purchaser’s goods can be easily seen and identified; this is usually specified in
the bidding document.
shipping terms Description of how goods will be shipped, who is responsible for them at each
stage of the process, and who pays which costs. See Incoterms.

short list In procurement, a list of potential suppliers or contractors who have been
qualified, approved, or pre-selected.

sole source Procurement term that describes purchasing from a single manufacturer,
without competition, among potential suppliers; most often applies to items that
are not available from any other source. Also, see direct procurement.

solicitation Procurement term for the process of inviting bids, or requesting proposals, for
the supply of a product or service; also used to refer to the document requesting
bids or proposals.

specification Detailed, precise written description.

specification committee A committee formed by an authorized person, relevant authority, or a federal

procurement cell to prepare specifications and documents for procurement.

standard Something established by authority as a rule to measure quantity, weight, extent,

value, or quality. For example, the ISO establishes rules for the vial closures
commonly used for injectables.

substantially responsive In World Bank procurement, a bid that contains no material deviations from or
reservations of the terms, conditions, and specifications in the bidding
documents.

supplier Party who transfers goods out of his own control to a named recipient.

surety Person or firm that is legally responsible for the debt, default, or delinquency of
another.

survey report Report of the insurance survey.

target population Program term for the total number of intended clients, based on expected
coverage rates.

Technical Evaluation Committee established to assist a procurement unit, committee relevant

Committee authority, bid evaluation committee, or a federal procurement cell to review
documents and make technical evaluations.

threshold level Point of entry or beginning. In World Bank terminology, it is a monetary level
that determines whether the World Bank should review a particular contract
prior to being invited and executed, and which government committee is
responsible for bid evaluation; these levels are set in the loan or development
credit agreement.

trademark Name, symbol, figure, letter, word, or mark adopted and used by a manufacturer
or merchant to designate their goods and to distinguish them from those
manufactured or sold by others. Trademarks must be registered with a patent
and trademark office to ensure exclusive use by their owners.

transparency Openness and accountability in all activities and actions concerned with
procurement.
turnover Number of times a particular stock of goods is sold and restocked during a given
period of time; the amount of business transacted during a given period of time.

Uniform Customs and A set of rules for cross-border transactions relating to letters of credit (also
Practice for Documentary known as documentary credits and documentary letters of credit) codified by the
Credits (UCP) International Chamber of Commerce.

unresponsive bid Procurement term for an offer that does not comply with the most basic
instructions and requirements stated in the bidding documents provided by the
purchasing organization. For example, it may be one that is not signed, is in the
wrong language, or does not offer the required product(s).

weighting (factor) System of units in a scale measuring weight (or value). In procurement, used to
assign values to non-monetary items prior to comparing bids.

wholesaler Supply term for a dealer who purchases supplies from a manufacturer on his
own behalf and resells them for a profit.

work order Purchaser’s communication to a contractor instructing them to undertake the

obligations of a contract; is usually part of the contract.