Q1: What is the minimum time you have to respond to procurement advertisements?
Answer: In accordance with the terms listed the Public Procurement Ruled 2004 rule 13, the minimum response time cannot be less than 15 days for competitive national bidding and 30 days for competitive international bidding. Depending on the nature of the procurement the relevant procuring agencies are allowed to increase the response time accordingly.
Q2: How do procuring agencies calculate the response time?
Answer:The response time is calculated from the date the advertisement is published in the press or posted on the PPRA website. In cases where it is mandatory for the advertisement to appear in both the press and online, under the terms of rule 12 of the PPR 2004 the response time is calculated from the date it first appears in a newspaper.
Q3: Can a procuring agency fix the bid security amount?
Answer: No, procuring agencies cannot set the amount of bid security. Under rule 25, however, of the Public Procurement Rules 2004, a procuring agency can request that bidders furnish a bid security that doesn’t exceed 5% of the price of the bid.
Q4: Can procuring agencies reject a bid without giving a reason?
Answer: Under rule 33(s1) of the Public Procurement Rules 2004, procuring agencies can reject any or all proposals at any time. The procuring agency must give immediate notice of rejection to the relevant bidders. These bidders can request that the agency reveals the reason/s for rejection but they incur no liability for this action for are they legally required to justify their rejection of any bids or proposals.
Q5: What actions will the procuring agency adopt if all the prices of the bids substantially exceed the estimated cos or market value?
Answer: Procuring agencies are allowed to cancel all bids prior to acceptance under rule 33 of the Public Procurement Rules, 2004 and can also invoke rule 34 regarding re-bidding.
Q6: Can the procuring agency enter into negotiations to reduce the price of the bids or call for new bids to be made?
Answer: No. Entering into negotiations with the bidder who has submitted the lowed bid, or with any other bidder for that matter, is not allowed under rule 40 of the Public Procurement Rules,2004.
Q7: Are any negotiations allowed between the procuring agency and any of the bidders, whether they are the lowest or not?
Answer: No negotiations with any bidders are allowed under under rule 40 of Public Procurement Rules 2004.
Q8: If a procuring agency signs an MOU, Memorandum Of Understanding with the Transparency International Pakistan that empowers the latter to scrutinize the contracts that they are going to sign, isn’t this practice an overlap of the PPRA mandate by the Civil Society Organization and is it in line with the PPRA Ordinance 2002 and PP rules 2004?
Answer: Only a mandate is in place for PPRA via its Ordinance-2002 which monitors and regulates the application of rules and law and rules that relate to the public procurement of all works, services and goods. PPRA doesn’t indulge in any line clearance functions and this function has neither been covered by law nor has it been outsourced by PPRA to any Civil Society Organization within or outside of Pakistan. Any public sector organizations that enter into MOU agreements that include a line clearance function do so voluntarily at their own cost and risk.
Q9: How do you upload tender documents on the PPRA website?
There are 3 ways to get your tender documents from PPRA
You can request a user ID and password Can be provided by emailing firstname.lastname@example.org to submit your tender online.
You can send soft copies of tender documents by courier or post to “IT section Public Procurement Regulatory Authority, 1st Floor FBC Building G5/2 Islamabad”
3. You can submit your tender documents as an email attachment with to email@example.com.
Q10: Do all annual requirements have to be advertised in advance on the PPRA website or only the main items?
Answer: The rules regarding annual procurement should be found under rule 9, macro level, on the PPRA website and also on the website belonging to the organization dealing with prospective bidders advance information. Detailed advertising regarding the processing of the procurements should be made, as and when required, in accordance with the guidelines in rule 12.
Q11: If any tender for a procurement of goods is priced at over 100,000 rupees and up to the limit of 2,000,000 rupees is submitted on the authority’s website, is there any requisite for the procuring agency to also advertise it in print?
Answer: No, there is no mandate in place for an agency to advertise in print any tender for procurement of work, goods or services that the value of falls between 100,000 rupees and the upper limit of 2,000,000 rupees.
If only 1 bid/tender is received following a tender notice that has been advertised in either one of both of the accepted media, authority website and/or print, does that single tender have to be accepted or can they re-advertise it?
How can a procurement agency compare only one bid?
If no bids or tenders are received what methods will the procurement agency usually adopt? Will they re-advertise or employ direct contracting?
i. Under the Public Procurement Rules 2004 there are no limits on the number of bids or tenders received provided that the opportunity for procurement has been correctly advertised. Therefore, a single bid can be considered as long as it meets the evaluation criteria which is clearly stated in the original tender notice and isn’t in conflict with any of the ruled, policies or regulations of the Federal Government. However, the agency still needs to employ due diligence when making the decision in regards to rule 4; the “Principles of Procurement”.
ii. If a procuring agency has such a situation where the price quoted by a single bidder can’t be compared in order to declare it to be the lowest rate it can make a prudent decision. In making this decision, however, the following must be taken into consideration;
a. A comparison of price for the services, goods or works or if they have been procured during the current financial year
b. The market price of the services, goods or works to be procured
c. In the case of an abnormal increase in prices being observed, the procuring agency could prefer to re-advertise the opportunity if time is permitting
iii In this case re-advertisement is likely to be the preferred option. Direct contracting is an option provided that the opportunity meets the conditions for direct contracting.
Q13: If preference was afforded to a domestic or national contractor/ supplier and the magnitude of price preference is mentioned, should clarification be needed as to whether the magnitude of the price preference be in figure or as a percentage?
Answer: Any preference given to domestic/national contractors or suppliers must be in accordance with the Federal Government’s policies. The magnitude of preference, is specified in the Ministry of Commerce’s S.R.O 827(1)2001 dated 3rd December 2001 and amended on 28.09.2002. This S.R.O is available to download on the PPRA website.
Q14: a) It’s been observed by some that the financial limits for procurement under the sub rules (a) & (b) aren’t sufficient, are these limits to be reviewed?
Answer: Rule 42 sub rule (a) includes a provision which says that “Provided further that procuring agencies convinced of the inadequacy of the financial limit prescribed for petty purchases in undertaking their respective operations may approach the Federal Government for enhancement of the same with full and proper justifications”. Likewise, Rule 42’s sub rule (b) includes the provision that reads as “Provided that procuring agencies convinced of the inadequacy of the financial limit prescribed for request for quotations in undertaking their respective operations may approach the Federal Government for enhancement of the same with full and proper justifications.” This means that the procuring agency can send a proposal to the PPRA board for consideration.
It is also stated under sub rule C(iv) that procuring agencies can engage in direct contracting for any repeat orders that don’t exceed 15% of the original procurement. It isn’t clear, however, how this rule can be applied in the case of procurement of equipment or spare parts as this has been dealt with under rule 42, sub rule C (i) which states that “A procuring agency can only engage in a direct contract if these following conditions are in place;
The procurement deals with the acquisition of supplementary services or spare parts from the original supplier or manufacturer
The same services or spare parts aren’t available from any alternative sources
In the case of procurement of equipment/spare parts through open and competitive bidding when the spare parts with the required specifications are available from a multitude of sources, any repeat orders that don’t exceed 15% of the original procurement of the equipment/ spare parts can be placed under rule 42 sub rule C(iv)
Q15: Which type of record is to be maintained for audit?
Answer:Following documents may be kept for maintenance record of procurement by the procuring agencies for requirements of audit.
i. Detail with regard to the originating of demand. It explains the nature and quantity of the items to be produced. It should be supported by justification report.
ii. Purchase requisition may be maintained. It shows specification as well as quantity of the items to be produced. It also contains the name/ names of the consignee, to whom the material is to be delivered.
Tender documents/ file
iii. It includes consolidation of tender documents, preparation of tabulation statements, analysis of sales, comparative statement, evaluation of tender, documents by the technical committee, approval of the competent authority.
iv. Purchase order file be maintained. It includes the documentary detail of the quantity ordered, rate accepted and delivery period, inspection of material, chemical analysis, acceptance of material on basis of suitability report from the consignee and finally, delivery of material to the ultimate consignee.
v. Material receipt note be maintained, it shows description and quantity of material accepted. It is an authority for payment.
vi. Contractor bills:-These show detail of material supplied and must always be accompanied by original copy of material, Receipt Note and original sales Tax Invoice.
vii. Budget file containing appropriation for the purchases.
viii. File relating to sanction/ approval of competent authority to make the purchase and make payments and related documents, necessary for audit including need assessment, actual quantities demand, difference if any, from items purchased and those required along with justifications.
ix. Record of goods, services and works to be planned/ procured in a year before publishing advertisements.
x. Record of spare parts/ equipments or services procured from the original manufacturer or record of goods, services and works actually procured in a particular year.
xi. Copies of tenders/ quotations invited to make the purchases along with specifications.
xii. In case of limited tenders, sealed quotation, comparatives statements and invitation record.
xiii. Record showing the particulars of bidders who purchased tender documents, deposited bids and participated in the tendering process.
xiv. Record of bidders who deposited bid security to the procuring agency.
xv. Pre-qualification record of suppliers/ contractors.
xvi. Technical & Financial bid evaluation reports of each type of procurement.
xvii. Newspapers in which advertisements published against each procurement.
xviii. Record of cash deposit receipt, received from the bidders.
xix. Stock Register containing the entries of purchase and specification of items purchased.
xx. Register showing details of items procured services made as well as work done.
xxi. The record pertaining to requisitions made by the department as well as approval of the competent authority for said procurements.
xxii. Record of black-listed suppliers/ contractors.
xxiii. Purchase committee should also keep a record of evaluation of input cost of consumable stores on the basis of project usage in addition to the cost of the equipment while evaluating the bids.
xxiv. Delivery of challans of suppliers/ contractors.
xxv. Instructions to bidders.
xxvi. Proceedings of committees.
xxvii. Final approval of competent authority for procurement from a particular bidder at specific rate.
xxviii. Acceptance letter to successful bidders.
xxix. Bank guarantees.
xxx. In case of imported goods, import invoices, inventories, indents, letter of credit and shipping documents.
xxxi. Issue indents/ acknowledgements.
xxxii. Pre-qualification record of suppliers and contractors.
xxxiii. Inspection rates/ laboratory tests and analysis reports of samples provided by suppliers.
xxxiv. Tender opening committee should record their proceedings and if feel necessary negotiation be carried out with the different suppliers/ contractors.
xxxv. Delegation of financial powers.
xxxvi. Codal requirements.
xxxvii. Contractor profile.
xxxviii. Firms registered with sales tax department.
xxxix. Test reports.
xl. All latest instruction/ direction/ discretion/ rules/ regulations for procurement.