Legal Advice on PPRA RULES 2004 & PPRA Rules (Punjab) 2014

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Client Query 1:

Query: What is the minimum response time for procurement advertisements?

Answer: According to Rule 13 of the Public Procurement Rules 2004, the minimum response time for procurement advertisements shall not be less than fifteen (15) days for national competitive bidding and thirty (30) days for international competitive bidding. Procuring agencies have the discretion to increase the response time depending on the nature of the procurement.

Client Query 2:

Query: How can a procuring agency calculate the response time for procurement advertisements?

Answer: The response time is calculated from the date of the first publication of the advertisement in a newspaper or the posting on the PPRA’s website. If the advertisement is mandated to be published in both print and on the PPRA website as per Rule 12 of the Public Procurement Rules 2004, the response time shall be calculated from the date of the first publication in the newspaper.

Client Query 3:

Query: Can a procuring agency fix the amount for bid security?

Answer: Yes, the procuring agency may require bidders to furnish a fixed amount of bid security, which should not exceed five percent of the estimated value of the procurement. If the procuring agency does not require bid security, the bidder must submit a bid securing declaration in the format prescribed by the Authority in the Standard Procurement Documents.

Client Query 4:

Query: Can a procuring agency reject bids without assigning any reason?

Answer: Under Rule 33(1) of the Public Procurement Rules 2004, a procuring agency may reject all bids or proposals at any time prior to the acceptance of a bid or proposal. The procuring agency must immediately notify all bidders of the rejection. Upon request, the procuring agency must provide the reasons for the rejection of bids but is not required to justify the rejection or incur any liability on this account.

Client Query 5:

Query: What action should a procuring agency take when all bid prices substantially exceed the estimated cost or market value?

Answer: The procuring agency is allowed to cancel all bids prior to acceptance as provided under Rule 33 of the Public Procurement Rules 2004. Subsequently, the agency may invoke Rule 34 for re-bidding.

Client Query 6:

Query: Can a procuring agency negotiate with bidders for a reduction in prices or call for new bids?

Answer: Negotiations with the bidder who submitted the lowest evaluated bid or any other bidder are not allowed under Rule 40 of the Public Procurement Rules 2004.

Client Query 7:

Query: Is negotiation allowed with all bidders or only with the lowest evaluated bidders?

Answer: Negotiations with the bidder who submitted the lowest evaluated bid or any other bidder are not permitted under Rule 40 of the Public Procurement Rules 2004.

Client Query 8:

Query: Is it appropriate for procuring agencies to sign MOUs with Transparency International Pakistan for contract scrutiny, given the PPRA’s mandate?

Answer: Only the PPRA is mandated by the Ordinance 2002 to monitor and regulate the application of laws and rules related to public procurement of goods, services, and works. The PPRA does not perform line clearance functions, nor has this function been outsourced to any Civil Society Organization. Public sector organizations entering into MOUs for line clearance functions do so at their own risk and cost.

Client Query 9:

Query: How can tender documents be uploaded to the PPRA website?

Answer: Tender documents can be uploaded to the PPRA website through the following methods:

Online: User ID and password can be requested via email at [email protected] for online tender submission.
By Post: Soft copies of tender documents can be sent by post/courier to “IT section, Public Procurement Regulatory Authority, 1st Floor FBC Building, G5/2, Islamabad.”
By Email: Tender documents can be sent as attachments with file extensions “DOC” (MS Word), “JPG” (Image), or “PDF” (Acrobat Reader) to [email protected].

Client Query 10:

Query: Should all annual procurement requirements be advertised in advance on the PPRA’s website or just the main items?

Answer: Indicative requirements of annual procurement should be advertised under Rule 9 at a macro level on the PPRA’s website as well as on the website of the concerned organization for the advance information of prospective bidders. Detailed advertisements for processing the procurements should be made subsequently as required in accordance with Rule 12.

Client Query 11:

Query: If a tender for procurement of goods between five hundred thousand rupees and three million rupees is launched on the Authority’s website, is there a compulsion to advertise it in print media?

Answer: If a tender for procurement of goods, services, and works costing over five hundred thousand rupees and up to three million rupees is launched on the Authority’s website, it is not mandatory to also advertise it in print media.

Client Query 12:

Query: If only one tender/bid is received in response to an advertised tender, should it be accepted or re-advertised? If no tender/bid is received, what method of procurement should be adopted?

Answer: i. Under Rule-38B, a single responsive bid in goods, works, and services can be considered if it: (a) Meets the evaluation criteria, ensures compliance with specifications, and other terms and conditions expressed in the advertisement or bid solicitation documents. (b) Is not in conflict with any provision of the Ordinance. (c) Conforms to the technical specifications. (d) Has financial conformance in terms of rate reasonability.

ii. Re-advertisement is the preferred option. Direct contracting may also be used if it meets the prescribed conditions for direct contracting.

Client Query 13:

Query: Should the magnitude of price preference for domestic or national suppliers/contractors be mentioned in figures or percentages?

Answer: The magnitude of preference for domestic or national suppliers or contractors should be in accordance with the policies of the Federal Government. Currently, this is specified in the Ministry of Commerce S.R.O 827(1)2001 dated 3rd December 2001, as amended on 28th September 2002. This S.R.O can be downloaded from the PPRA’s website.

Client Query 14:

Query: Are the financial limits for procurement under sub-rules (a) & (b) sufficient, and how can these limits be reviewed?

Answer: (a) Under Rule 42, procuring agencies convinced of the inadequacy of the financial limit for petty purchases may approach the Federal Government for enhancement with full and proper justifications. Similarly, for quotations, procuring agencies can request an increase in the financial limit. (b) Rule 42(c)(iv) allows for direct contracting for repeat orders not exceeding fifteen percent of the original procurement. For spare parts, Rule 42(c)(i) provides for direct contracting if spare parts are not available from alternative sources.

Client Query 15:

Query: What type of records should be maintained for audit purposes?

Answer: Procuring agencies should maintain the following records for audit purposes:

Detail of the originating demand, supported by a justification report.
Purchase requisition detailing specifications and quantity, including the consignee’s name.
Tender documents/files, including consolidation, tabulation, comparative statements, evaluation reports, and approval by the competent authority.
Purchase order file with details of quantity, accepted rate, delivery period, inspection, and acceptance reports.
Material receipt note, contractor bills with original material receipt notes, and sales tax invoices.
Budget file containing appropriations for purchases.
Files relating to sanction/approval, need assessment, and actual quantities demanded versus purchased.
Records of annual procurement plans, spare parts procured, tenders/quotations, limited tenders, bidder particulars, bid security deposits, pre-qualification records, technical & financial bid evaluation reports, advertisements, cash deposit receipts, stock registers, procurement requisitions, black-listed suppliers, input cost evaluations, delivery challans, bidder instructions, committee proceedings, approval letters, bank guarantees, import documents, issue indents, inspection rates, negotiation records, delegation of financial powers, contractor profiles, sales tax registrations, and test reports.

Client Query 16:

Query: Can procuring agencies prescribe a condition that bidders involved in litigation over procurement matters with them or other Government departments are not allowed to participate in their procurement proceedings?

Answer: Article 4 of the Constitution, 1973 of the Islamic Republic of Pakistan, ensures the right to be dealt with in accordance with the law. Article 8 requires avoiding laws inconsistent with fundamental rights, and Article 199(2) allows individuals to move a high court for enforcement of fundamental rights. Rule 48(5) of the Public Procurement Rules, 2004, allows bidders to appeal decisions of the redressal grievances committee. Rule 49 provides for arbitration to settle disputes. Therefore, restricting bidders involved in litigation would not be appropriate. However, procuring agencies may request information on court cases and assess their impact on procurement, ensuring fairness, transparency, and equality.

Client Query 17:

Query: Can any member of the general public, besides bidders or their representatives, attend the opening of bids under Rule 28 of Public Procurement Rules, 2004?

Answer: Rule 28 of the Public Procurement Rules, 2004, states that all bids shall be opened publicly in the presence of the bidders or their representatives. The general public, defined as bidders or their representatives, can be restricted accordingly.

Client Query 18:

Query: Are public sector enterprises exempted from submitting bid security or performance guarantees in open bidding of procuring agencies?

Answer: Rule 25 of the Public Procurement Rules, 2004, allows procuring agencies to require bidders to furnish bid security not exceeding five percent of the estimated procurement value. This rule applies regardless of whether the bidder is from the public or private sector. The method of submission should be clearly mentioned in the bidding documents, as the rule does not specify the method.

Client Query 19:

Query: What is meant by a local original manufacturer of motor vehicles?

Answer: According to Rule 42(c)(vii) of the Public Procurement Rules, 2004, a procuring agency shall engage in direct contracting if the purchase of a motor vehicle is made from local original manufacturers or their authorized agents at the manufacturer’s price. The Ministry of Industries and Production has clarified that vehicles assembled in Pakistan from imported Complete Knock Down (CKD) kits utilizing local content and paying all local taxes are considered locally manufactured. Vehicles imported as Completely Built Units (CBU) are not considered locally manufactured.

Client Query 20:

Query: Does the PPRA have the power to settle audit paras on mis-procurements or violations of Public Procurement Rules, 2004, and regulations?

Answer: The PPRA has not been delegated any power to regularize mis-procurement or settle audit paras of any procuring agency under the PPRA Ordinance, 2002, or the Public Procurement Rules, 2004, and relevant regulations.

Client Query 21:

Query: Can procuring agencies procure goods/commodities/works/services at rates fixed by the procuring agency itself?

Answer: Rule 42(c)(vi) of the Public Procurement Rules, 2004, allows a procuring agency to engage in direct contracting when the prices of goods, services, or works are fixed by the Government or any authorized body on its behalf. This provision applies when the item is available at uniform rates in the market and holding a competition would not bring additional value for money to the procuring agency

Client Query 22:

Query: Hi, I wanted to discuss whether it is permissible under PPRA Rules for an international company, which was not directly involved in a contract, to send invoices for maintenance charges of IT equipment purchased from a local supplier?

Answer: Thank you for your query. According to established business practices and norms under the Public Procurement Regulatory Authority (PPRA) rules, invoices should be submitted and accepted from the firm with which the contract was signed. Therefore, it is not permissible for an international company, which was not directly involved in the contract, to send invoices for maintenance charges. The procurement laws do not provide a specific provision for this situation, and thus, standard contractual practices should be followed.

Client Query 23:

Query: Can you please provide a rule that allows for the cancellation of an invitation to tender before its opening?

Answer: Thank you for your query. As per Rule 33 of the Public Procurement Rules 2004, a procuring agency has the right to reject all bids or proposals at any time prior to the acceptance of a bid or proposal. This rule permits the cancellation of an invitation to tender before its opening.

Client Query 24:

Query: In a bid invited according to Rule 36(b), where technical bids have been opened and forwarded for evaluation, one bidder mentioned in their cover letter that no performance security is applicable. Should this bid be rejected, or should further clarification be sought?

Answer: Thank you for your query. In this case, the procuring agency should seek further clarification from the bidder in accordance with Rule 31 of the Public Procurement Rules 2004. It is essential to determine whether the bidder’s statement aligns with the procurement requirements and regulations. Performance guarantees can be demanded by procuring agencies from the successful bidder as per Rule 39 of the Public Procurement Rules 2004.

Client Query 25:

Query: If the selected supplier fails to provide samples and hesitates to abide by the terms and conditions, should we cancel their contract and consider the next bidder?

Answer: Thank you for your query. If a lowest evaluated bidder fails to provide the relevant goods/samples as per the agreed terms of reference (TORs), their bid security can be forfeited. The procuring agency should then award the contract to the second lowest evaluated bidder, ensuring adherence to the principles of procurement outlined in Rule 4 of the Public Procurement Rules 2004.

Client Query 26:

Query: Is it mandatory to issue bidding documents to a firm that has already been prequalified for a project by a procuring agency?

Answer: Thank you for your query. After the completion of the prequalification process, the procuring agency should provide bidding documents to all prequalified bidders. These documents are necessary for inviting financial bids and ensuring transparency in the procurement process.

Client Query 27:

Query: Does a Procuring Agency have the right to increase or decrease the quantity of goods or services after a contract is awarded?

Answer: The right of a Procuring Agency to increase or decrease the quantity of goods or services largely depends on the specific terms and conditions outlined in the bidding documents. Many procurement contracts include a ‘variation clause’ that allows for adjustments based on actual requirements. It is crucial to review the bidding documents to determine the extent of this right and the procedural requirements for implementing such changes. Without explicit permission in the documents, significant changes may require a new procurement process.

Client Query 28:

Query: Can a department revise an initially awarded supply order by changing the manufacturer for certain items and increasing the cost by 15%?

Answer: Thank you for your query. As per the Public Procurement Rules 2004, a bidder is required to supply goods that were evaluated and approved under the original contract terms. Providing goods from a different manufacturer that were not part of the original evaluation criteria constitutes a violation of these rules. The department should adhere strictly to the approved evaluation criteria and original contract terms.

Client Query 29:

Query: Can additional documents be sought during technical evaluation when bids are invited according to the Single Stage – Two Envelope procedure?

Answer: Thank you for your query. According to Rule 31 of the Public Procurement Rules 2004, no bidder is allowed to alter or modify their bid after the bids have been opened. However, the procuring agency may seek and accept clarifications that do not change the substance of the bid. This ensures fairness and transparency in the procurement process.

Client Query 30:

Query: Can a procuring agency award a contract to both the 1st and 2nd lowest bidders by distributing the work equally, asking the 2nd lowest bidder to work at the rates quoted by the 1st lowest bidder?

Answer: Thank you for your query. The ranking of bidders is based on their technical and financial proposals, and the contract should be awarded to the lowest evaluated bidder conforming to the evaluation criteria. Matching prices of the 2nd lowest bidder with the 1st lowest bidder is not allowed under the Public Procurement Rules 2004. Therefore, the contract cannot be awarded to both bidders on this basis.

Client Query 31:

Query: If bids are invited according to Rule 36(b) and during technical evaluation a bidder states that no performance security is applicable, should this bid be rejected or should further clarification be sought?

Answer: Thank you for your query. The procuring agency should seek further clarification from the bidder in accordance with Rule 31 of the Public Procurement Rules 2004. Performance guarantees can be demanded from the successful bidder as per Rule 39 of the Public Procurement Rules 2004. It is important to ensure that all bidders comply with the procurement requirements and regulations.

Client Query 32:

Query: If the selected supplier fails to provide samples and hesitates to abide by the terms and conditions, should we cancel their contract and consider the next bidder?

Answer: As per your query, if a lowest evaluated bidder fails to provide the relevant goods and samples as per the agreed TORs, their bid security can be forfeited. The procuring agency is then required to award the contract to the second lowest evaluated bidder, keeping in view the principles of procurement outlined in Rule 4 of the Public Procurement Rules 2004.

Client Query 33:

Query: Can you please intimate the rule to cancel the invitation to tender before its opening?

Answer: As per your query, Rule 33 of the Public Procurement Rules 2004 explains that bids or proposals can be rejected at any time prior to the acceptance of a bid or proposal. This rule allows for the cancellation of an invitation to tender before its opening.

Client Query 34:

Query: Can a local company bid in foreign currency under an international tender?

Answer: As per your query, a local company can bid in foreign currency in international tenders according to Rule 30(2) of the Public Procurement Rules 2004. For comparison purposes, the price shall be converted into a single currency specified in the bidding documents at the exchange rate prevailing on the date of bid opening, as notified by the State Bank of Pakistan.

Other Q and A’s on the PPRA Rules 2004

Q: What is the purpose of the Public Procurement Rules 2004? A: The Public Procurement Rules 2004 aim to provide a framework for fair and transparent public procurement, ensuring value for money and efficiency in procurement processes.

Q: When did the Public Procurement Rules 2004 come into effect? A: The Public Procurement Rules 2004 came into effect immediately upon their notification on June 9, 2004.

Q: Define ‘bid’ as per the PPRA Rules 2004. A: A ‘bid’ is a tender or an offer in response to an invitation by a person, consultant, firm, company, or organization expressing willingness to undertake a specified task at a price.

Q: Who is considered a ‘bidder’ under these rules? A: A ‘bidder’ is any person who submits a bid in response to a procurement invitation.

Q: What does ‘blacklisted’ mean in the context of the PPRA Rules 2004? A: A ‘blacklisted’ bidder is one declared untrustworthy by the Authority due to involvement in corrupt and fraudulent practices, performance failures, or deviation from prior commitments.

Q: What is ‘competitive bidding’? A: ‘Competitive bidding’ is a procedure leading to the award of a contract, allowing all interested parties to submit bids, ensuring open competition.

Q: Define ‘contractor’ as per the rules. A: A ‘contractor’ is a person, consultant, firm, company, or organization who undertakes to supply goods, services, or works.

Q: What are ‘corrupt and fraudulent practices’ as defined in these rules? A: ‘Corrupt and fraudulent practices’ include coercive, collusive, corrupt, fraudulent, and obstructive practices that harm the procurement process.

Q: What does ‘cross debarred’ mean? A: ‘Cross debarred’ means a bidder debarred by any procuring agency is considered debarred by all procuring agencies.

Q: How is ’emergency’ defined in the PPRA Rules 2004? A: An ’emergency’ is defined as natural calamities, disasters, accidents, war, and operational emergencies requiring prompt action.

Q: What is ‘e-Procurement’? A: ‘E-Procurement’ is the use of information and communication technologies or digital means for procurement processes.

Q: What is a ‘framework agreement’? A: A ‘framework agreement’ is a contractual arrangement allowing a procuring agency to procure goods, services, or works needed continuously or repeatedly at agreed terms and conditions over a period.

Q: Define ‘most advantageous bid’. A: A ‘most advantageous bid’ is one that meets eligibility criteria and is evaluated as the highest-ranked based on cost, quality, or a combination thereof.

Q: What does the term ‘Ordinance’ refer to? A: The term ‘Ordinance’ refers to the Public Procurement Regulatory Authority Ordinance 2002.

Q: What is a ‘repeat order’? A: A ‘repeat order’ is the procurement of the same commodity from the same source without competition, including contract enhancements.

Q: Who is a ‘supplier’ under these rules? A: A ‘supplier’ is a person, consultant, firm, company, or organization who undertakes to supply goods, services, or works.

Q: What is an ‘unsolicited project proposal’? A: An ‘unsolicited project proposal’ is a unique and innovative proposal not submitted in response to any procurement request but aligned with the procuring agency’s mission and subject to competitive selection.

Q: What does ‘value for money’ mean in procurement? A: ‘Value for money’ means the best returns for each rupee spent in terms of quality, timeliness, reliability, after-sales service, upgradeability, price, and overall cost and quality combination.

Q: To whom do these rules apply? A: These rules apply to all procurements made by all procuring agencies of the Federal Government, both within and outside Pakistan.

Q: What are the principles of procurement under the PPRA Rules 2004? A: The principles of procurement include fairness, transparency, value for money, and efficiency and economy in the procurement process.

Section 2: Scope and Applicability

Q: What should be done in case of conflict with international treaties? A: In case of conflict with international treaties, the provisions of such treaties or agreements prevail to the extent of the conflict.

Q: In what languages should procurement communications and documentation be? A: Procurement communications and documentation must be in Urdu, English, or both, and may include the local language if the procuring agency is outside Pakistan.

Q: What is an ‘integrity pact’? A: An ‘integrity pact’ is an agreement between the procuring agency and suppliers or contractors for procurements exceeding the prescribed limit, ensuring honesty and integrity.

Q: What does ‘procurement planning’ entail? A: Procurement planning involves devising a detailed mechanism for all proposed procurements, determining requirements, resources, delivery time, and future benefits.

Q: Can procurement be split or regrouped? A: Procurement should not be split or regrouped unless otherwise provided and with prior approval, ensuring transparency and efficiency.

Q: How should specifications be defined? A: Specifications must allow the widest possible competition, not favouring any single contractor or supplier.

Q: What is the approval mechanism for procurement? A: The approval mechanism requires clear authorization and delegation of powers, initiating procurement only after competent authorities’ approval.

Q: What are the methods of advertisement for procurement? A: Procurements over five hundred thousand Pakistani Rupees must be advertised on the Authority’s website, and over three million Pakistani Rupees in print media as well.

Q: What is the minimum response time for national competitive bidding? A: The minimum response time for national competitive bidding is fifteen days, and thirty days for international competitive bidding.

Q: Under what circumstances can advertisement requirements be waived? A: Advertisement requirements can be waived for procurements related to national security or proprietary information.

Q: What is pre-qualification of suppliers and contractors? A: Pre-qualification of suppliers and contractors ensures only capable firms are invited to submit bids for services, civil works, or complex equipment.

Q: What factors are considered in the pre-qualification process? A: Factors considered in pre-qualification include relevant experience, capabilities, financial position, managerial capability, and other relevant factors.

Q: What information is required in pre-qualification documents? A: Pre-qualification documents must include instructions, evaluation criteria, documentary evidence required, and any other necessary information.

Q: How is the pre-qualification process conducted? A: Pre-qualification is conducted by announcing all required information, providing documents to interested parties, and notifying them of their pre-qualification status.

Q: What is a ‘closed framework agreement’? A: A ‘closed framework agreement’ is an agreement with specified terms and conditions and an agreed price.

Q: What is a ‘call off order’? A: A ‘call off order’ is an order placed under general terms and pricing on a range of goods under a closed framework agreement without negotiating terms each time.

Q: What is the process for qualification of suppliers and contractors? A: Suppliers and contractors may be required to provide information concerning their competence if there is credible evidence of any defect.

Q: What can lead to disqualification of suppliers and contractors? A: Suppliers and contractors can be disqualified if they submit false or materially inaccurate or incomplete information.

Q: What is the mechanism for blacklisting suppliers and contractors? A: Blacklisting involves a comprehensive mechanism for debarment for specified periods due to corrupt practices, failure to perform, or breaches of contract.

Section 3: Methods of Procurement

Q: What is the principal method of procurement? A: The principal method of procurement is open competitive bidding.

Q: What is the open competitive bidding procedure? A: Open competitive bidding involves advertising procurement opportunities, inviting bids, and awarding contracts based on evaluation criteria.

Q: Explain the single stage – one envelope procedure. A: The single stage – one envelope procedure involves submitting one envelope containing both financial and technical proposals.

Q: Explain the single stage – two envelope procedure. A: The single stage – two envelope procedure involves submitting two separate envelopes for financial and technical proposals, with the technical proposal opened first.

Q: Explain the two stage bidding procedure. A: The two stage bidding procedure involves an initial technical proposal submission, evaluation, and discussion, followed by a revised technical and financial proposal submission.

Q: What is the two stage – two envelope bidding procedure? A: The two stage – two envelope method involves initial technical and financial proposals in separate envelopes, discussions, and revised submissions if necessary.

Q: When should the single stage two envelope procedure be used? A: The single stage two envelope procedure is used when bids are evaluated on technical and financial grounds, considering price after technical evaluation.

Q: When should the two stage bidding procedure be adopted? A: The two stage bidding procedure is adopted for large and complex contracts with potentially unequal technical proposals.

Q: When is the two stage two envelope bidding method appropriate? A: The two stage two envelope method is used for procurements where alternative technical proposals are possible.

Q: What is an unsolicited proposal? A: An unsolicited proposal is a unique and innovative proposal not submitted in response to any procurement request but aligned with the procuring agency’s mission and subject to competitive selection.

Q: What happens if only one bid is received? A: If only one bid is received, it can be considered if it meets evaluation criteria, ensures compliance, and is financially reasonable.

Q: What are the requirements for performance guarantees? A: Performance guarantees, if required, must not exceed ten percent of the contract amount.

Q: What is the role of a letter of credit in procurement? A: A letter of credit can be used in procurement involving shipments and custom clearance to mitigate risks for both procuring agency and bidder.

Q: Can negotiations take place after bid submission? A: Post submission negotiations can streamline execution but must not change cost or scope of work or services.

Q: What confidentiality measures are required? A: Confidentiality of technical or final evaluation information must be maintained until the respective evaluation reports are announced.

Q: What are the alternative methods of procurement? A: Alternative procurement methods include petty purchases, request for quotations, direct contracting, and negotiated tendering.

Q: What is ‘direct contracting’? A: Direct contracting is used for acquiring spare parts, supplementary services, or when only one manufacturer or supplier exists.

Q: What is ‘negotiated tendering’? A: Negotiated tendering involves negotiations with one or more suppliers or contractors, used in specific circumstances such as technical or artistic reasons.

Q: What are ‘petty purchases’? A: Petty purchases involve single quotations for procurements up to one hundred thousand Pakistani Rupees without bidding.

Q: What is the procedure for ‘request for quotations’? A: Request for quotations involves procurement from GST registered firms for values between one hundred thousand and five hundred thousand Pakistani Rupees.

Q: How should payments be handled? A: Payments must be made promptly against invoices or running bills within the contractually specified time, not exceeding thirty days.

Section 4: Contract Management

Q: When does a procurement contract come into force? A: A procurement contract comes into force either from the notice of acceptance or purchase order or from the date of signing a written contract.

Q: How is a contract closed? A: A contract is closed upon the issuance of a delivery or taking over certificate, or defect liability certificate if applicable.

Q: What records must be maintained? A: Procurement records must be maintained for a minimum of five years, subject to regulatory requirements.

Q: How is public access to procurement information ensured? A: Public access to procurement information must be ensured by making evaluation and award documents public, with exceptions for proprietary or sensitive information.

Q: What is the process for redressal of grievances? A: Grievances are addressed by a committee, with complaints allowed before proposal submission deadlines and decisions made within specified timeframes.

Q: How are disputes settled after contract award? A: Post-contract disputes are settled by arbitration, with methods provided in the procurement contract consistent with Pakistani laws.

Q: What constitutes mis-procurement? A: Mis-procurement involves unauthorized breaches of these rules.

Q: What is the overriding effect of these rules? A: These rules have overriding effect, applying notwithstanding any contrary provisions in other rules, except for ongoing procurements before their commencement.

Section 5: Specific Procurement Processes

Q: What is ‘competitive bidding’ under the PPRA Rules 2004? A: ‘Competitive bidding’ means a procedure leading to the award of a contract whereby all interested persons, firms, companies, or organizations may bid for the contract, ensuring open competition.

Q: Who qualifies as a ‘contractor’? A: A ‘contractor’ is a person, consultant, firm, company, or organization who undertakes to supply goods, services, or works.

Q: What is the definition of ‘goods’ in these rules? A: Goods are tangible items that are procured.

Q: Define ‘services’ under the PPRA Rules 2004. A: Services refer to tasks, duties, or work done by individuals or companies.

Q: What are ‘works’ in the context of these rules? A: Works include construction, repair, and maintenance activities.

Q: What does ‘most advantageous bid’ entail? A: A ‘most advantageous bid’ is one that meets eligibility criteria and is evaluated as the highest-ranked based on cost, quality, or a combination thereof.

Q: What are ‘corrupt and fraudulent practices’? A: ‘Corrupt and fraudulent practices’ include the offering, giving, receiving, or soliciting of anything of value to influence the actions of a party in the procurement process.

Q: What is a ‘cross debarred’ bidder? A: A ‘cross debarred’ bidder is one debarred by any procuring agency and considered debarred by all procuring agencies.

Q: Define ’emergency’ according to these rules. A: An ’emergency’ is defined as natural calamities, disasters, accidents, war, and operational emergencies requiring prompt action.

Q: What does ‘e-Procurement’ mean? A: ‘E-Procurement’ is the use of information and communication technologies or digital means for procurement processes.

Q: What is the purpose of a ‘framework agreement’? A: A ‘framework agreement’ is a contractual arrangement allowing a procuring agency to procure goods, services, or works needed continuously or repeatedly at agreed terms and conditions over a period.

Q: What is an ‘open framework agreement’? A: An ‘open framework agreement’ is an agreement with specified terms and conditions without an agreed price.

Q: What does ‘procurement planning’ involve? A: Procurement planning involves devising a detailed mechanism for all proposed procurements, determining requirements, resources, delivery time, and future benefits.

Q: What are the limitations on splitting or regrouping procurement? A: Procurement should not be split or regrouped unless otherwise provided and with prior approval, ensuring transparency and efficiency.

Q: What should specifications ensure? A: Specifications must allow the widest possible competition, not favouring any single contractor or supplier.

Q: What is the approval process for procurement? A: The approval mechanism requires clear authorization and delegation of powers, initiating procurement only after competent authorities’ approval.

Q: What are the rules for procurement advertisements? A: Procurements over five hundred thousand Pakistani Rupees must be advertised on the Authority’s website, and over three million Pakistani Rupees in print media as well.

Q: What is the response time for international competitive bidding? A: The minimum response time for international competitive bidding is thirty days from the date of publication of the advertisement or notice.

Q: When can advertisement requirements be waived? A: Advertisement requirements can be waived for procurements related to national security or proprietary information.

Q: What is pre-qualification? A: Pre-qualification ensures only capable firms are invited to submit bids for services, civil works, or complex equipment.

Q: What factors determine pre-qualification? A: Factors include relevant experience, capabilities, financial position, managerial capability, and other relevant factors.

Q: What information is included in pre-qualification documents? A: Pre-qualification documents must include instructions, evaluation criteria, documentary evidence required, and any other necessary information.

Q: How is pre-qualification announced? A: Pre-qualification is announced by providing documents to interested parties and notifying them of their pre-qualification status.

Q: What is a ‘closed framework agreement’? A: A ‘closed framework agreement’ is an agreement with specified terms and conditions and an agreed price.

Q: How are suppliers qualified? A: Suppliers may be required to provide information concerning their competence if there is credible evidence of any defect.

Q: What can cause disqualification of suppliers? A: Suppliers can be disqualified if they submit false or materially inaccurate or incomplete information.

Q: What is the blacklisting process? A: Blacklisting involves a comprehensive mechanism for debarment for specified periods due to corrupt practices, failure to perform, or breaches of contract.

Q: What is the main method of procurement? A: The main method of procurement is open competitive bidding.

Q: Describe open competitive bidding. A: Open competitive bidding involves advertising procurement opportunities, inviting bids, and awarding contracts based on evaluation criteria.

Q: What is the single stage – one envelope process? A: The single stage – one envelope procedure involves submitting one envelope containing both financial and technical proposals.

Q: What is the single stage – two envelope process? A: The single stage – two envelope procedure involves submitting two separate envelopes for financial and technical proposals, with the technical proposal opened first.

Section 6: Advanced Procurement Processes

Q: Explain two stage bidding. A: Two stage bidding involves an initial technical proposal submission, evaluation, and discussion, followed by a revised technical and financial proposal submission.

Q: Describe the two stage – two envelope method. A: The two stage – two envelope method involves initial technical and financial proposals in separate envelopes, discussions, and revised submissions if necessary.

Q: When to use single stage two envelope procedure? A: The single stage two envelope procedure is used when bids are evaluated on technical and financial grounds, considering price after technical evaluation.

Q: When to use two stage bidding? A: Two stage bidding is adopted for large and complex contracts with potentially unequal technical proposals.

Q: When is two stage two envelope method used? A: The two stage two envelope method is used for procurements where alternative technical proposals are possible.

Q: What is the procedure for unsolicited proposals? A: Unsolicited proposals are assessed by an expert committee, advertised for competition, and may give the initiator additional weightage in evaluation.

Q: What if only one bid is received? A: If only one bid is received, it can be considered if it meets evaluation criteria, ensures compliance, and is financially reasonable.

Q: What are performance guarantees? A: Performance guarantees, if required, must not exceed ten percent of the contract amount.

Q: Role of letter of credit in procurement? A: A letter of credit can be used in procurement involving shipments and custom clearance to mitigate risks for both procuring agency and bidder.

Q: Can bids be negotiated post submission? A: Post submission negotiations can streamline execution but must not change cost or scope of work or services.

Q: What are confidentiality requirements? A: Confidentiality of technical or final evaluation information must be maintained until the respective evaluation reports are announced.

Q: List alternative procurement methods. A: Alternative procurement methods include petty purchases, request for quotations, direct contracting, and negotiated tendering.

Q: What is direct contracting? A: Direct contracting is used for acquiring spare parts, supplementary services, or when only one manufacturer or supplier exists.

Q: Define negotiated tendering. A: Negotiated tendering involves negotiations with one or more suppliers or contractors, used in specific circumstances such as technical or artistic reasons.

Q: Explain petty purchases. A: Petty purchases involve single quotations for procurements up to one hundred thousand Pakistani Rupees without bidding.

Q: Describe request for quotations process. A: Request for quotations involves procurement from GST registered firms for values between one hundred thousand and five hundred thousand Pakistani Rupees.

Q: How are payments managed? A: Payments must be made promptly against invoices or running bills within the contractually specified time, not exceeding thirty days.

Q: When does a procurement contract start? A: A procurement contract comes into force either from the notice of acceptance or purchase order or from the date of signing a written contract.

Q: How to close a contract? A: A contract is closed upon the issuance of a delivery or taking over certificate, or defect liability certificate if applicable.

Q: Record-keeping requirements? A: Procurement records must be maintained for a minimum of five years, subject to regulatory requirements.

Q: How to ensure public access to information? A: Public access to procurement information must be ensured by making evaluation and award documents public, with exceptions for proprietary or sensitive information.

Q: Grievance redressal process? A: Grievances are addressed by a committee, with complaints allowed before proposal submission deadlines and decisions made within specified timeframes.

Q: How are disputes resolved post-contract? A: Post-contract disputes are settled by arbitration, with methods provided in the procurement contract consistent with Pakistani laws.

Q: What is mis-procurement? A: Mis-procurement involves unauthorized breaches of these rules.

Q: Effect of these rules? A: These rules have overriding effect, applying notwithstanding any contrary provisions in other rules, except for ongoing procurements before their commencement.

Q: Who is a ‘bidder’? A: A ‘bidder’ is any person who submits a bid in response to a procurement invitation.

Q: What is ‘contractor’? A: A ‘contractor’ is a person, consultant, firm, company, or organization who undertakes to supply goods, services, or works.

Q: Define ‘goods’. A: Goods are tangible items that are procured.

Q: Define ‘services’. A: Services refer to tasks, duties, or work done by individuals or companies.

Q: Define ‘works’. A: Works include construction, repair, and maintenance activities.

Q: What is a ‘most advantageous bid’? A: A ‘most advantageous bid’ is one that meets eligibility criteria and is evaluated as the highest-ranked based on cost, quality, or a combination thereof.

Q: What are ‘corrupt practices’? A: ‘Corrupt practices’ include the offering, giving, receiving, or soliciting of anything of value to influence the actions of a party in the procurement process.

Q: What does ‘cross debarred’ mean? A: ‘Cross debarred’ means a bidder debarred by any procuring agency is considered debarred by all procuring agencies.

Q: Define ’emergency’. A: An ’emergency’ is defined as natural calamities, disasters, accidents, war, and operational emergencies requiring prompt action.

Q: What is ‘e-Procurement’? A: ‘E-Procurement’ is the use of information and communication technologies or digital means for procurement processes.

Q: Purpose of ‘framework agreement’? A: A ‘framework agreement’ is a contractual arrangement allowing a procuring agency to procure goods, services, or works needed continuously or repeatedly at agreed terms and conditions over a period.

Q: What is ‘open framework agreement’? A: An ‘open framework agreement’ is an agreement with specified terms and conditions without an agreed price.

Q: Limitation on splitting procurement? A: Procurement should not be split or regrouped unless otherwise provided and with prior approval, ensuring transparency and efficiency.

Q: What should specifications ensure? A: Specifications must allow the widest possible competition, not favouring any single contractor or supplier.

Q: Approval process for procurement? A: The approval mechanism requires clear authorization and delegation of powers, initiating procurement only after competent authorities’ approval.

Q: Rules for procurement advertisements? A: Procurements over five hundred thousand Pakistani Rupees must be advertised on the Authority’s website, and over three million Pakistani Rupees in print media as well.

Q: Response time for international bids? A: The minimum response time for international competitive bidding is thirty days from the date of publication of the advertisement or notice.

Q: When can ads be waived? A: Advertisement requirements can be waived for procurements related to national security or proprietary information.

Q: What is pre-qualification? A: Pre-qualification ensures only capable firms are invited to submit bids for services, civil works, or complex equipment.

Q: Factors for pre-qualification? A: Factors include relevant experience, capabilities, financial position, managerial capability, and other relevant factors.

Q: What info is in pre-qualification docs? A: Pre-qualification documents must include instructions, evaluation criteria, documentary evidence required, and any other necessary information.

Q: How to announce pre-qualification? A: Pre-qualification is announced by providing documents to interested parties and notifying them of their pre-qualification status.

Q: What is ‘closed framework agreement’? A: A ‘closed framework agreement’ is an agreement with specified terms and conditions and an agreed price.

Q: How to qualify suppliers? A: Suppliers may be required to provide information concerning their competence if there is credible evidence of any defect.

Q: Reasons for disqualification? A: Suppliers can be disqualified if they submit false or materially inaccurate or incomplete information.

Q: Blacklisting process? A: Blacklisting involves a comprehensive mechanism for debarment for specified periods due to corrupt practices, failure to perform, or breaches of contract.

Q: Main procurement method? A: The main method of procurement is open competitive bidding.

Q: Open competitive bidding? A: Open competitive bidding involves advertising procurement opportunities, inviting bids, and awarding contracts based on evaluation criteria.

Q: Single stage – one envelope? A: The single stage – one envelope procedure involves submitting one envelope containing both financial and technical proposals.

Q: Single stage – two envelope? A: The single stage – two envelope procedure involves submitting two separate envelopes for financial and technical proposals, with the technical proposal opened first.

Q: Two stage bidding? A: Two stage bidding involves an initial technical proposal submission, evaluation, and discussion, followed by a revised technical and financial proposal submission.

Q: Two stage – two envelope? A: The two stage – two envelope method involves initial technical and financial proposals in separate envelopes, discussions, and revised submissions if necessary.

Q: When to use single stage two envelope? A: The single stage two envelope procedure is used when bids are evaluated on technical and financial grounds, considering price after technical evaluation.

Q: When to use two stage bidding? A: Two stage bidding is adopted for large and complex contracts with potentially unequal technical proposals.

Q: When to use two stage two envelope? A: The two stage two envelope method is used for procurements where alternative technical proposals are possible.

Q: Unsolicited proposal process? A: Unsolicited proposals are assessed by an expert committee, advertised for competition, and may give the initiator additional weightage in evaluation.

Q: Single bid consideration? A: If only one bid is received, it can be considered if it meets evaluation criteria, ensures compliance, and is financially reasonable.

Q: Performance guarantees? A: Performance guarantees, if required, must not exceed ten percent of the contract amount.

Q: Letter of credit role? A: A letter of credit can be used in procurement involving shipments and custom clearance to mitigate risks for both procuring agency and bidder.

Q: Post submission negotiation? A: Post submission negotiations can streamline execution but must not change cost or scope of work or services.

Q: Confidentiality measures? A: Confidentiality of technical or final evaluation information must be maintained until the respective evaluation reports are announced.

Q: Alternative procurement methods? A: Alternative procurement methods include petty purchases, request for quotations, direct contracting, and negotiated tendering.

Q: Direct contracting? A: Direct contracting is used for acquiring spare parts, supplementary services, or when only one manufacturer or supplier exists.

Q: Negotiated tendering? A: Negotiated tendering involves negotiations with one or more suppliers or contractors, used in specific circumstances such as technical or artistic reasons.

Q: Petty purchases? A: Petty purchases involve single quotations for procurements up to one hundred thousand Pakistani Rupees without bidding.

Q: Request for quotations? A: Request for quotations involves procurement from GST registered firms for values between one hundred thousand and five hundred thousand Pakistani Rupees.

Q: Payment management? A: Payments must be made promptly against invoices or running bills within the contractually specified time, not exceeding thirty days.

Q: Procurement contract start? A: A procurement contract comes into force either from the notice of acceptance or purchase order or from the date of signing a written contract.

Q: Contract closure? A: A contract is closed upon the issuance of a delivery or taking over certificate, or defect liability certificate if applicable.

Q: Record-keeping? A: Procurement records must be maintained for a minimum of five years, subject to regulatory requirements.

Q: Public info access? A: Public access to procurement information must be ensured by making evaluation and award documents public, with exceptions for proprietary or sensitive information.

Q: Grievance redressal? A: Grievances are addressed by a committee, with complaints allowed before proposal submission deadlines and decisions made within specified timeframes.

Q: Post-contract dispute resolution? A: Post-contract disputes are settled by arbitration, with methods provided in the procurement contract consistent with Pakistani laws.

Q: Mis-procurement? A: Mis-procurement involves unauthorized breaches of these rules.

Q: Effect of rules? A: These rules have overriding effect, applying notwithstanding any contrary provisions in other rules, except for ongoing procurements before their commencement.