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Daily Legal Advice Series

PPRA Rules Query on Procurement Procedures

Client Query 118:- Hi, our organisation is faced with a situation! If you could please guide your best! Actually our organisation is underĀ services provision contract. Situation is as under:- Tenders were called on single stage two envelope basis and technical proposals were opened on 01-10-2012. In the evaluation report all the four participants were found acceptable. Their financial proposals were opened on 08-10-2012. Proposal for the approval of the contract on the basis of the lowest evaluated bid was forwarded to the competent forum on 22-10-2012. In the tenders, bid validity required was 90 days. The contract could not be got approved till next 90 days period due to the frequent changes in the competent forum to approve the contract. The contract got finally approved from the Board of Directors on Nov 29th 2013 and after obtaining the validity of the bid. After which, Letter of Intent was issued to the successful bidder on 29th November 2013. Our query is that this delay in the approval where there is no change in the substance of the contract and bid is revalidated, have we violated any of the PPRA rules? Thank you!


Nasir Iqbal, UK


Answer:- Thank you for writing to us! As per your query, in terms of Rule 26 (3) of Public Procurement Rules, 2004 the procuring agency shall ordinarily be under an obligation to process and evaluate the bid within the stipulated bid validity period. The bid validity period shall be extended not more than the period equal to the period of the original bid validity period.
In compliance of the above rule, PIA was required to process and evaluate the bids within the period of 180 days. However, LOI is issued after a lapse of more than six (06) months, which is a clear violation of Rule 26 of the Public Procurement Rules, 2004.
Attention is invited to Rule 50 of Public Procurement Rules, 2004 which envisages that any unauthorized breach of these rules shall amount to mis-procurement. Hope this answers your query!

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