Procurements under

PPRA Framework
Muhammad Usman
Additional Secretary, MPDD
 Objective
• Introduction
– Public Procurements
– PPRA
– Procurement Cycle
– Methods of Procurement
– Selection of Consultants

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 Introduction
• PPRA acronym of Public Procurement Regulatory
Authority
• Purchase Manual was replaced with PPRA
framework in 2001
• Punjab Procurement Regulatory Authority Act
2009
• Punjab Procurement Rules 2009 ( Repealed)
• Punjab Procurement Rules 2014

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 Public Procurement
 Purchase/Acquisition/Construction of
goods, services or Civil Works financed
wholly or partly out of the public fund.
 Public Fund includes the funds of
enterprises owned or controlled by the
Federal/Provincial/District Governments.

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 Economy

Efficiency

Transparency
Procurement
Principles of Public

Accountability
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Procurement Cycle
 Planning
• Need Assessment
– Why, What, When, Where, How?
• Budget Allocation
• Annual Procurement Plan
• Determining the Requirements
– Weighing the alternatives
• Market Survey
• Expert Advice
• Identification of Potential Hazards & Constraints
• Refining the statement of needs
• Preparation of Estimates

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Annual Procurement Plan

External Link

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 Preparation
• Choice of Procurement Method
• Formation of Purchase Committee
• Finalization of Evaluation Criteria
• Approval by the competent Authority
• Preparation of Bidding Documents
• Invitation of Bids/ Public Advertisement
• Pre-Bid Conference ( Optional)
• Formation of Grievance Redressal Committee
• Dispute Resolution Forum
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 Response Time
 Sufficient keeping in view
 Complexity
 Urgency
 Availability
 Counted from the date of publication of
advertisement on newspaper or website,
whichever is later
 Not less than 15 days for national Competitive
Bidding (NCB)
 Not less than 30 days for International
Competitive Bidding (ICB)
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 Bidding Documents
• Bidding Documents mean set of documents
prescribing the quantity, quality , specifications
and procedures of the items/services to be
procured before the actual procurement on the
basis of which bidders are required to prepare
their Bids.
• Bid means a tender or an offer, in response to an
invitation, by a person, consultant, firm, company
or an organization expressing his/her willingness
to undertake a specified task at the quoted price.

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 Contents of Bidding Documents
• Standard Bidding Documents to be used
• Other Consistent Bidding Documents may be used
• Invitation to Bid
• Instruction to Bidders
• Form of Bid
• Form of Contract
• General / Special Conditions of Contract
• Specifications/ Drawings / Performance Criteria
• List of goods or bill of quantities
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 Contents of Bidding Documents
• Delivery time or completion schedule
• Bid evaluation criteria
• Time & Place for Bid Submission & Opening
• Form of Securities required (Bid Security,
Performance Security, Advance Payment Security)
• Details of all standards that are to be used in
assessing the quality of goods, works or services
specified; and
• Any other detail that the procuring agency may deem
necessary.
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 Specifications
 Level Playing Field
 Generic Specification
 Brand, Model Name or Number etc. not
allowed.
 Where reference is extremely necessary, it
shall be qualified with the word “or
Equivalent”

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 Bid Submission
• Bid to be in sealed package
• Bid Opening 30 minutes after submission
time
• Bid Security
• NTN Certificate
• Supporting Documents
• One Person, One Bid

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 Bid Opening
• Bid opening on the time specified in the bidding
document
• Last date of submission & Bid opening date shall be
same
• After 30 minutes of bid submission time
• Public Opening at notified time & place
• Invitation to all bidders to attend
• Attendance of the present bidders
• Late bids to be rejected & returned without opening

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 Evaluation Criteria
 Notified Evaluation Criteria
 Evaluation Criteria to be part of the Bidding
Document
 Evaluation Committee should have 3 or more
members for fair & impartial evaluation
 Failure to notify Clear Evaluation Criteria shall be
mis-procurement
 ICB, currencies to be converted in same
denomination, on the basis of selling rate of the
day of opening bids
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 Evaluation Report
 The results of evaluation to be notified in the form
of a report
 10 days prior to award of contract

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 Rejection & Re-Bidding
• PA may reject all proposal prior to acceptance
• Upon request, shall communicate reasons for
rejection but justification not necessary
• No Liability
• Rebidding for reasons to be recorded in
writing
• Assessment of reasons and revision of
conditions

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 Acceptance of Bid
 Qualified, Responsive, Lowest Evaluated
Bidder to be awarded the contract within the
bid validity period
 Procuring Agency may require Performance
Security not exceeding 10% of the Contract
Amount
 The PA shall keep all the evaluation details in
full confidentiality till the announcement of
evaluation report
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 Award of Contract/Purchase Order

• Qualified Responsive Lowest Evaluated Bid

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 Payments
 Quality & Quantity Verification
 Deduction of Income Tax and Sales Tax
Goods:
 NTN registered Firm: 4.5%
 Non registered Firm: 6.5%
 17% GST

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 Payments
Services: ( Post 18th Amendment a Provincial
Subject)
 16% Sales Tax on Services
 10% income tax on PRA registered
 15% income tax PRA non-Registered
 Payments ( Running & Final Bill) within 30
days, as per the Bidding document

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 Commencement of Contract
 Commencement from the
 If signing a formal contract is not required
 Date of issuance of Purchase/Work
Order
 Notification of acceptance of Bid
 signing of contract by both parties-
Reasonable time

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 Closure of Contract
 Closure on the issuance of delivery/taking over
certificate, to be issued within 30 days of the final
receipt/taking over
 Except Defect Liability, as per the conditions in
the Bidding Document
 Defect Liability another 30 days
 Post Sale Service/ Service Level Agreement
 Final Bill shall be submitted after closure
 Unsettled Claims, to be settled through Dispute
Resolution Mechanism
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 Failures by Bidder
 Imposition of Penalty on late performance, as per
the conditions in the bidding document
 Reasonable/ up to a maximum to the limit given in
the Bidding Document
 Encashment of Bid Security on failure to enter into
contract, if offered within the Bid Validity Period
 Encashment of Performance Security on failure to
perform the contractual obligations
 Blacklisting

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 Language of Procurement
• Urdu
• English
• Language of the Country from where
procurement is required to be made

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 Transparency
• Advertisement
• Publication of Correct Specifications
• Declaration of evaluation Criteria
• Announcement of evaluation report
• Documents to be made public-RTI Laws
• Documents of proprietary nature may be
withheld on explicit approval of the authority
• Maintenance of Record for 5 years
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 Limitation on Splitting
 Annual Procurement Plan
 Publication of APP on website of PPRA and
own website
 Procurement to be according to the plan
 No Splitting/re-grouping allowed.

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 Single Complying Bid
• May be awarded

Limitation on Negotiations
• Not Allowed
• Voluntary Discount by the lowest responsive bidder

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 Assignment
• Procurement process may be assigned to
another government procurement agency
on mutual agreement

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 Blacklisting
 The procuring agency may, for a specified period,
debar a bidder or contractor from participating in
any public procurement process of the procuring
agency, if the bidder or contractor has:
 action detrimental to public interest
 consistently failed to perform obligation
 not performed up to the mark; or
 indulged in any corrupt practice.

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 Blacklisting
 In such case:
 forward the decision to the PPRA for
publication on the website and
 may request PPRA to debar the bidder for
procurement of all procuring agencies.
 MD may debar the bidder from all
procurements
 Representation to MD within 30 days
 Representation to Chairperson within 30
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 Maintenance of Records
 Specification of items/services
 Budget Documents
 Approval of Specification
 Selection of procurement methods;
 Evaluation Criteria
 Minutes of Pre-Bid Meeting
 Minutes of Tender Opening and
Authentication
 Names of Participating Parties
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 Maintenance of Records
 Contents of invalid tenders and
reasons;
 Clarification of tenders
 Evaluation Reports
 Contracts/ Purchase/ Work Order
 Approvals of the Authority

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 Maintenance of Records
 Performance / Advance Payment
Security Documents
 Delivery Schedule
 Signed contracts
 Completion Certificates
 Stock Verification
 Payment Vouchers
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 Mis-procurement
Public procurements in contravention of any
of the provisions of PPRA Ordinance 2009,
Punjab Procurement Rules 2014, or the
guidelines, regulations, orders or instructions
issued thereunder shall deem to be Mis-
procurement.

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Methods of Procurement
 Methods of Procurement
• Petty Purchases
• Request for Quotations (RFQ)
• Open Competitive Bidding OR Request for
Tender (RFT)
• Repeat Orders
• Pre-Qualification

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 Methods of Procurement
• Expression of Interest (EOI)
• Request for Proposal (RFP)
• Direct Contracting
• Negotiated Tendering

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 Petty Purchases
No Quotations
• Up to a maximum of Rs. 50,000/-
• General principles of procurement

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 Request for Quotation ( RFQ)
More than Rs. 50,000 but less than Rs 100,000
• No Bidding Required
• 3 Quotations
• General Principles of Procurement

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 Open Competitive Bidding
• Also known as Request for Tender RFT
• Principle Method of Procurement
• Single Stage Bidding process
• Single Stage : One Envelope
• Single Stage : Two Envelope
• Two Stage Bidding process
• Two Stage Bidding
• Two Stage : Two Envelope Bidding
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 Single Stage : One Envelope
• One single envelope containing, separately,
financial proposal and technical proposal.
• Used where the scope and technical
specification of the procurements are very
clear and unambiguous.
• Projects of repetitive nature/ pool of
registered contractors is available.
• Preferred for small and uncomplicated
procurements.
• Generally financially lowest bid is selected.
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 Single Stage : Two Envelope
• Single package containing two separate
envelopes
– Technical proposal
– Financial proposal.
• The envelopes shall be marked as
“TECHNICAL PROPOSAL” and “FINANCIAL
PROPOSAL” in bold and legible letters to
avoid confusion.

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 Single-Stage (Two – Envelope)
First Stage (Technical Proposal )
i) Bidders shall submit, according to the
required specifications, a technical
proposal.
ii) Initially, only the envelope marked
“TECHNICAL PROPOSAL” shall be opened.
iii) The envelope marked “FINANCIAL
PROPOSAL” shall be retained in the
custody of the procuring agency
unopened.
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 Single-Stage (Two – Envelope)
i) Technical proposal shall be evaluated in
accordance with the specified evaluation
criteria and may be discussed with the
bidders regarding any deficiencies and
unsatisfactory technical features.
ii) Financial bids of the Bidders who qualify
Technically are opened and the remaining
are returned un-opened.
iii) The lowest evaluated bid based on
Technical and Financial bids is approved
for award.
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 Direct Contracting
 For spare parts/ supplementary services
 From Original Supplier/Manufacturer
 Items not available from other source
 Only One manufacturer Exists
 PA to declare decision forum
 Change of Supplier may cause technical
problems/ compatibility issues

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 Thank You
(Questions Please)