PROJECT

Facilitator : Ahmed Aslam, PMP, MPM, ACCA

COURSE OUTLINE
 Week 01 – Introduction
 Week 02 – Procurement in project life cycle
 Week 03 – Assignment, Make or buy analysis
 Week 04 – Buyer & Seller relationships
 Week 05 – Purchasing process
 Week 06 – Quiz, Procurement documents
 Week 07 – Supplier positioning and sourcing strategy
o Week 08 - Mid-term Examination
 Week 09 – Seller pre-qualifications, evaluation & bidding
 Week 10 - Commercial contract management
 Week 11 - Assignment, Bids opening and evaluation
o Week 12 - Conflict & Dispute resolution
o Week 13 - Formal acceptance of deliverables
o Week 14 – Quiz, Procurement involving international suppliers
o Week 15 – Project Presentation
o Week 16 - Final Examination
Public Procurement Regulatory Authority (PPRA)

• Make regulations and lay down code of ethics and procedures

• Monitor public procurement practices and make recommendations

to improve transparency and accountability of public procurement

• Monitor overall performance of procuring agencies and make

recommendations for improvements

• Provide and coordinate assistance to procuring agencies for

developing their institutional framework

• Call any functionary of procuring agencies to provide assistance

Public Procurement Rules
• Protection to Intergovernmental commitments & International Agencies

• Procurement Planning

• Limitation on Splitting of Tenders

• Promotion of stipulating generic specifications

• Bid Evaluation Criteria to be stated in Invitation to Bids

• Methods of Advertisement

• Limitation on Negotiations

• Date of Exchange Rates to be prescribed in the bidding documents

• Grounds for rejection of bids to be intimated to unsuccessful Bidders

General provision
• Scope and applicability:
All procurement made by all procuring agencies of the Federal Government
whether within or outside Pakistan

• International and inter-governmental commitments

Whenever these rules are in conflict with an obligation or commitment of the
Federal Government arising out of an international treaty or an agreement with a
State or States, or any international financial institution the provisions of such
international treaty or agreement shall prevail to the extent of such conflict
General provision
• Language:
• All communications and documentation related to procurements of the
Federal Government shall either be in Urdu or English or both

• Except where a procuring agency is situated outside the territories of

Pakistan and procurements are to be made locally, the procuring agency may
use the local language in addition to Urdu or English

• Where the use of local language is found essential, the original

documentation shall be in Urdu or English, which shall be retained on record;
for all other purposes their translations in local language shall be used
Procurement planning
• Annual Procurement Plan
Preparation of Annual Procurement Plan by every procuring agency of the
Federal Government & uploading on PPRA website & procuring agency's own
website (if any) is mandatory

• Limitation on splitting or regrouping of proposed procurement

Procuring agency shall announce in an appropriate manner all proposed
procurements for each financial year and shall proceed accordingly without any
splitting or regrouping of the procurements so planned
Procurement planning
• Specifications
• Specifications shall allow the widest possible competition

• Shall not favour any single contractor or supplier

• Shall not put others contractor or supplier at a disadvantage

• Shall be generic

• Shall not include references to brand names, model numbers, catalogue numbers
or similar classifications

• However if the use of or a reference to a brand name or a catalogue number is

essential, such use or reference shall be qualified with the words “or equivalent”

• Approval mechanism
Clear authorization and delegation of powers for different categories of procurement
Procurement advertisements
Methods of advertisement
Procuring agency utilizing electronic media shall ensure the information posted is
complete, and shall remain available on that website until the closing date for the
submission of bids
PPRA Format
Procurement advertisements
• Response time
• Expressly mention the response time allowed for that procurement

• Calculated from the date of first publication in an advertisement in newspaper or

posting on the website

• Advertisement in newspaper will take precedence as compared to website

• No circumstances the response time shall be less than 15 days for National competitive
bidding and 30 days for International competitive bidding from the date of publication

• Collection of Bid documents issuance date

• Exceptions
• Proposed procurement is related to national security and its publication could
jeopardize national security objectives

• Relates to disclosure of information which is proprietary in nature or falls within the

definition of intellectual property which is available from a single source
Methods of procurement
• Submission of bids
Submitted in a sealed package(s) in such manner that the contents are fully enclosed
and cannot be known until duly opened

• Bidding Document
• Formulate precise and unambiguous standard bidding documents that shall be
made available to the bidders immediately after publication of invitation to bid.
• All information will be shared in a timely manner and on equal opportunity basis.
• Where notification of change, addition, modification or deletion becomes essential,
such notification shall be made in a manner similar to the original advertisement.

• Reservations and preference

• Allow all bidders to participate without regard to Nationality, except if it is limited
by agency in accordance to policy
• Preference to domestic over national suppliers
Methods of procurement
• Bid security
May require the bidders to furnish a bid security not exceeding five percent of the bid price

• Bid validity
• Bids shall be valid for the period of time specified in the bidding document

• If an extension is considered necessary, all bidders shall be asked to extend their

respective bid validity period

• Such extension shall be for not more than the period equal to the period of the original
bid validity

• Extension of time for submission of bids

• Agency shall do so only after recording its reasons in writing and in an equal
opportunity manner

• Advertisement of such extension in time shall be done in a manner similar to the

original advertisement
Methods of procurement
• Opening of bids
• The date for opening of bids and the last date for the submission of bids shall be the same

• Bids shall be opened at the time specified in the bidding documents

• The bids shall be opened at least thirty minutes after the deadline for submission of bids

• All bids shall be opened publicly in the presence of the bidders or their representatives

• Procuring agency shall read aloud the unit price as well as the bid amount

• All bidders in attendance shall sign an attendance sheet

• All bids submitted after the time prescribed shall be rejected and returned without being
opened

• Evaluation of bids
• All bids shall be evaluated in accordance with evaluation criteria set in bidding document

• If Bids are quoted in different currencies, the price shall be converted into a single currency

• The rate of exchange shall be the selling rate (SBP), prevailing on the date of opening of bids
Methods of procurement
• Clarification of bids
• No bidder shall be allowed to alter or modify his bid after the bids have been opened

• However the procuring agency may seek and accept clarifications to the bid that do
not change the substance of the bid

• Any request for clarification in the bid, made by the procuring agency shall invariably
be in writing (the response to such request shall also be in writing)

• Discriminatory and difficult conditions

• Rejection of bids

• Re-bidding

• Announcement of evaluation reports

Open competitive bidding
• Single stage – one envelope procedure
• Single envelope containing, separately, financial proposal and technical proposal (if any)

• Bids will be evaluated in the manner specified in Bidding Document

• Single stage – two envelope procedure

•Separate
“FINANCIAL
PROPOSAL” and Only “TECHNICAL
“TECHNICAL PROPOSAL” shall be
PROPOSAL” in opened
bold and legible
•“FINANCIAL
letters
PROPOSAL”
shall be
Single package retained in the •No amendments Financial Proposal of
containing 2 custody of the in the technical technically qualified
separate envelopes procuring proposal shall be vendors will be opened
agency without permitted
•Financial
being opened Technical proposals of
Evaluation will be those found •Financially
done technically non- lowest bid of
responsive shall technically
be returned back qualified vendor
to bidders will be selected
without opening
Lowest evaluated
bid will be selected
Open competitive bidding
• Two stage bidding procedure
• First Stage

Bidders not confirming

• Financial Proposal “TECHNICAL
will not be
PROPOSAL” shall be
provided by bidder
evaluated
Only Technical • Technical
Proposal will be • Deficiencies and
unsatisfactory
submitted
technical features
will be discussed
with bidders
to revised technical
requirement can
withdraw
• Remaining bidders
requirement / will be given time*
Criteria can be to provide revised
revised by technical proposals
Company
Revision of
Technical Proposals
by bidders
Open competitive bidding
• Two stage bidding procedure
• Second Stage

• Bidders who are willing

to comply with revised
specs Technical and both
Financial Bids will be
Revised Technical and opened
related Financial Proposal
• Evaluation will be done
as per Evaluation Criteria
• Financially lowest bid of
technically qualified
vendor will be selected

Lowest evaluated bid will

be selected
Open competitive bidding
• Two stage - two envelope bidding procedure
• First Stage

• Separate Bidders not confirming

“FINANCIAL to revised technical
PROPOSAL” and Only “TECHNICAL requirement can
“TECHNICAL PROPOSAL” shall withdraw
PROPOSAL” in bold be opened
and legible letters • Technical • Remaining bidders
requirement / will be given time*
Single package • “FINANCIAL Criteria can be to provide revised
containing 2 PROPOSAL” revised by technical
separate envelopes shall be retained Company proposals
in the custody Revision of
of the procuring Technical Proposals
agency without by bidders
being opened
Open competitive bidding
• Two stage - two envelope bidding procedure
• Second Stage

• Bidders who are willing

to comply with revised
specs
Revised Technical and
Supplementary Financial Technical and both
Proposal Financial Bids will be
opened • Financially lowest bid of
technically qualified
• Evaluation will be done as vendor will be selected
per Evaluation Criteria

Lowest evaluated bid will

be selected
Acceptance of bids and award of procurement contracts

• Acceptance of bids
The bidder with the lowest evaluated bid, if not in conflict with any other law, rules,
regulations or policy of the Federal Government, shall be awarded the procurement
contract

• Performance guarantee
Where needed, successful bidder can be required to submit performance guarantee
which shall not exceed ten per cent of the contract amount

• Limitation on negotiations
There shall be no negotiations with the bidder having submitted the lowest evaluated bid
or with any other bidder

• Confidentiality
The procuring agency shall keep all information regarding the bid evaluation confidential
until the time of the announcement of the evaluation report
Acceptance of bids and award of procurement contracts

• Alternative methods of procurements

• Petty purchases
Procuring agencies may provide for petty purchases where the object of the procurement is
below the financial limit

• Request for quotations:

• The cost of object of procurement is below Rs. 100,000

• The object of the procurement has standard specifications

• Minimum of three quotations have been obtained

• The object of the procurement is purchased from the supplier offering the lowest price
Acceptance of bids and award of procurement contracts

• Alternative methods of procurements

• Direct contracting:
• Acquisition of spare parts / supplementary services from original manufacturer or supplier

• Only one manufacturer or supplier exists for the required procurement

• Change of supplier would oblige the procuring agency to acquire material having different
technical specifications or characteristics and would result in incompatibility or
disproportionate technical difficulties in operation and maintenance

• Repeat orders not exceeding fifteen per cent of the original procurement

• In case of an emergency

• When the price of goods, services or works is fixed by the government or any other authority,
agency or body duly authorized

• Purchase of motor vehicle from local original manufacturers or their authorized agents at
manufacturer's price
Acceptance of bids and award of procurement contracts

• Alternative methods of procurements

• Negotiated tendering
• The supplies involved are manufactured purely for the purpose of supporting a specific piece
of research or an experiment, a study

• For technical or artistic reasons, or for reasons connected with protection of exclusive rights
or intellectual property, the supplies may be manufactured or delivered only by a particular
supplier

• For reasons of extreme urgency

• Entry into force of the procurement contract

• Where no formal signing of a contract is required

From the date the notice of the acceptance of the bid or purchase order has been given to
the bidder whose bid has been accepted.

• Where signing of a written contract is required

From the date on which the signatures of both the procuring agency and the successful
bidder are affixed to the written contract.