Islamabad, June 9, 2004

NOTIFICATION

S.R.O. 432(I)/2004.- In exercise of the powers conferred by section 26 of the Public

Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the Federal
Government is pleased to make the following rules, namely:-

1. Short title and commencement.-

1. These rules may be called the Public Procurement Rules, 2004.

2. They will come into power immediately.

2.
3. Scope and applicability.-
In any given case, these guidelines will apply to all acquisitions made by all obtaining
organizations of the Federal Government whether inside or outside Pakistan. They mmust follow
these guidelines and no one is to breached them

4. Principles of procurements.-
It is must for all procuring agencies that are doing procurements that they will have to guarantee
that the acquirements all the procurements that are made are directed in a reasonable and
straightforward way and the procurement charges should be reasonable and they should be fast
and efficient.

5. International and inter-governmental commitments of the Federal Government.-

At whatever point these principles are in clash with a commitment or responsibility of the
Federal Government emerging out of a global deal or a concurrence with the state or any
international level financial institute, the arrangements of such worldwide settlement or
understanding will win to the degree of such clash.

6. Language.-

a. All correspondences and documentation identified with acquisitions of the Federal

Government will either be in Urdu or English or both. If the procurement is happening
outside the borders of Pakistan or any international level, the agency that is doing
procurement can add that place’s local language in addition to Urdu and English.
 b. Where the usage of neighborhood language is discovered necessary, the first
documentation will be in Urdu or English, which will be held on record and for any remaining
purposes their interpretations in nearby language will be used.

Such utilization of local language guarantees most maximum profit and productivity in the
procurement process.

c. In case any dispute happens between the procurement process, the reference will be made
to the original documentation.

7. Integrity pact.-

Weight, dimension or anything related to procurement, that was signed between

two parties shall not exceed to a particular limit, as specified by regulation with approval
of the Federal Government, between the procuring agency and the suppliers or
contractors.

7a. To reduce disputes between two parties, the procurement agencies can carry
out many digital options like E-procurements to cover all the dealing according to the
rules and regulations or guidelines described by the particular authorities.

PROCUREMENT PLANNING

8. Procurement planning.-

Inside one year of initiation of these guidelines, all obtaining organizations will
devise a component, for arranging in detail for all proposed acquirements with the
object of practically deciding the prerequisites of the securing office, inside its
accessible assets, conveyance time or consummation date and advantages that are
probably going to build to the getting office in future.

9. Limitation on splitting or regrouping of proposed procurement.-

Any procuring agency inaugurating, will announce all procurements reports for
every financial year according to the given guidelines provided by respective authorities
with the secondary approval of the Federal Government. . The annual requirements thus
determined would be advertised in advance on the Authority’s website as well as on the
website of the procuring agency in case the procuring agency has its own website.

10. Specifications.-
 Determinations will permit the largest conceivable rivalry and will not support any
single contractual worker or provider nor put others off guard. Particulars will be
conventional and will exclude references to mark names, model numbers,
inventory numbers or comparable characterizations. . In any case if the
procurement agency is persuaded that the utilization of or a reference to a brand
name or an inventory number is very necessary to finish all the documentation
process, such use or reference will be qualified with the words "or same".

[Provided that this rule shall not apply to procurement made by public sector
commercial concerns on the demand of private sector client specifying, in writing, a
particular brand, model or classification of equipment, machinery or other objects.]

11. Approval mechanism.-

Every Company that is doing procurement shall provide clear documentation and
authorization of power to different groups of procurement and shall only start the
procurement process when the concerned authorities or departments gives final
approval to the process.

PROCUREMENT ADVERTISEMENTS

12. Methods of advertisement.-

a. All the procurements that are carried in between from 5000 Pkr to 3 Million Pkr can be
given an opportunity to advertise on the authority’s website and particular agencies
but they should follow all the guidelines or rules and regulations described by
authorities. If any necessary is required by the procurement agency, the advertisement
of the procurement agency can be delivered to the Print Media.

*[Provided that the lower financial limit for advertisement on Authority’s website for open
competitive bidding shall be the prescribed financial limit for request for quotations under
clause (b) of rule 42.]

b. If any procurement is made above 3 million pkr, that can have clear opportunity to
advertise on the authority’s website and as well as print media.

c. If any procurement agency has their own website so they can also post their
advertisement on their website concerning all their procurement details on the
advertisement.

d. In case any procurement agency is using electronic media for their procurement
processes, they must ensure that the information posted on the website is complete
for the purposes for which it has been posted, and the information uploaded on the
 website shall remain on the website until the closing date of the submission bids.

13. Response time.-

1. From the date of publication of the advertisement or notice, the procuring agency may
determine the response time for receipt of bids or proposals (including proposals for pre-
qualification), taking into account the complexity, availability and urgency of the individual
procurement. However under no given circumstances, the response time shall be less than
fifteen days for national competitive bidding and thirty days for international competitive
bidding from the date of publication of advertisement or notice.

All advertisements or notices shall expressly indicate the response period allowed for that
particular procurement, together with details relating to the collection of bid documents to
be provided by that date, providing for adequate time to complete and apply the bid by the
closing date.

Given that no time limit shall be applicable in case of emergency.

2. The response time can be calculated from the date of first publication of the advertisement in a
newspaper or posting on the website, depending on the case.

*[Provided that for all procurements up to three million Pakistani Rupees, the response
time shall be considered from the date of appearance of the advertisement on the
Authority’s website.]

3. In case the publications happens to be appeared in both electronic and print media then the
response time will be calculated from the day it has published on the newspaper.

14. Exceptions.-

It is kept compulsory for all the procurement agencies to advertise all the procurement
requirements exceeding [prescribed financial limit which is applicable under sub-clause (i) of
clause (b) of rule 42]. However, under after conditions deviation from the necessity is reasonable
with the earlier endorsement of the Authority:

1. the proposed obtainment is identified with public security and its distribution could
endanger public security targets
2. The proposed obtainment commercial or notice or distribution of it, in any way, identifies
with exposure of data, which is restrictive in nature or falls inside the meaning of licensed
innovation which is accessible from a solitary source.
 PRE-QUALIFICATION, QUALIFICATION AND DIS-QUALIFICATION OF SUPPLIERS AND
CONTRACTORS

15. Pre-qualification of suppliers and contractors.-

1. A obtaining organization, before the coasting of tenders, greeting to

proposition or offers in acquirement procedures, may participate in pre-
capability of bidders if there should arise an occurrence of administrations,
common works, turnkey projects and in the event of acquisition of costly and in
fact complex gear to guarantee that just actually and monetarily proficient firms
having sufficient administrative capacity are welcome to submit offers. Such pre-
capability will exclusively be founded on the capacity of the invested individuals
to play out that specific work sufficiently.

2. A securing office while participating in pre-capability may mull over the

accompanying components, to be specific:-

(a) relevant experience and past performance;

(b) capabilities with respect to personnel, equipment, and plant;
(c) financial position;
(d) appropriate managerial capability; and
(e) Ay other factor that a procuring agency may deem relevant, not inconsistent with
these rules.

16. Pre-qualification process.-

1. The acquiring organization taking part in pre-capability will declare, in the pre-capability
records, all data needed for pre-capability including directions for arrangement and accommodation of
the pre-capability archives, assessment standards, rundown of narrative proof needed by providers or
contractual workers to show their particular capabilities and whatever other data that the securing
office considers significant for pre-capability.

2. The obtaining organization will give a bunch of pre-capability reports to any provider or
contract based worker, on solicitation and subject to installment of cost, assuming any.
Clarification.- For the reasons for this sub-rule value implies the expense of printing and giving the
records as it were.

3. The securing organization will expeditiously tell every provider or contractual worker
presenting an application to pre-qualify whether it has been pre-qualified and will make accessible to
any individual straightforwardly engaged with the pre-capability measure, upon demand, the names,
everything being equal, or contract based workers who have been pre-qualified. Just providers or
contract based workers who have been pre-qualified will be qualified for take an interest further in the
acquisition procedures.

3. The obtaining office will convey to those providers or contract based workers who have not
been pre-qualified the purposes behind not pre-qualifying them.

*[16A. Procurement of common use items, services and commodities through framework
agreements.-

(1) The Procuring Agency will orchestrate the obtainment through structure arrangements
of repetitive or basic use things, administrations including upkeep administrations and those
products, whose market costs vacillate during the term of the understanding, for a most
extreme time of three years.

(2) The obtaining organization will get ready temporary yearly gauges including portrayal,
determinations, articulation of necessities and amounts, in view of levelheaded interest
gauges.

(3) Based on such gauge, getting office will start the prequalification procedures for choice
of providers and specialist organizations.

(4) Open and shut structure arrangements might be made with the chose providers and
specialist co-ops. Greatest length of open structure arrangements will not be over three
years and the shut system arrangements will not surpass one year.

(5) The getting office may on need premise pre-qualify new providers or specialist
organizations during coherence of structure concurrences with already pre-qualified
providers or specialist organizations.

(6) The Authority will make guidelines, administrative aides, rules or layouts for
acquirement through structure agreements.]
 *[16B. Price adjustment for framework agreements.-

(1) The acquiring office may, during the agreement execution, acknowledge a solicitation to
make value change (under condition of better than average value instability) and will make a
correlation of the costs mentioned against the public or global value pointer guides
embraced by the Authority and check the support for such value change.

(2) The getting office will decide the factor or rate for value change endorsed by the
Principal Accounting Officer (PAO).]

17. Qualification of suppliers and contractors.-

An acquiring organization, at any phase of the acquisition procedures, having solid purposes
behind or at first sight proof of any imperfection in provider's or contract based worker's
abilities, may require the providers or contract based workers to give data concerning their
expert, specialized, monetary, lawful or administrative skill if effectively pre-qualified:

Given that such capability will just be set down in the wake of recording reasons therefor
recorded as a hard copy. They will shape part of the records of that acquisition continuing.

18. Disqualification of suppliers and contractors.-

The procurement agency will exclude a provider or contractual worker on the off chance that it
finds, whenever, that the data put together by him concerning his capability as provider or
contract based worker was bogus and substantially mistaken or inadequate.

19. Blacklisting of suppliers and contractors.-

The procurement agencies will determine a component and way to for all time or briefly bar,
from taking an interest in their individual acquisition procedures, providers and contract based
workers who either reliably neglect to give agreeable exhibitions or are discovered to enjoy bad
or deceitful practices. Such notwithstanding activity will be appropriately advertised and
imparted to the Authority:

Given that any provider or contractual worker who is to be boycotted will be concurred
sufficient chance of being heard.
 METHODS OF PROCUREMENT

20. Principal strategy for acquisition.-

Save as in any case gave hereinafter, the obtaining organizations will utilize open serious offering
as the main technique for acquisition for the acquirement of merchandise, administrations and
works.
21. Open serious offering.-

Subject to the arrangements of rules 22 to 37 the acquiring organizations will take part in open
serious offering if the expense of the item to be obtained is more than *[the recommended
monetary cutoff which is appropriate under sub-provision (I) of statement (b) of rule 42].

22. Submission of offers.-

(1) The offers will be submitted in a fixed bundle or bundles in such way that the substance are
completely encased and can't be known until appropriately opened.

(2) A obtaining organization will indicate the way and strategy for accommodation and receipt
of offers in an unambiguous and clear way in the offering archives.

23. Bidding records.-

(1) Procuring offices will form exact and unambiguous offering reports that will be made
accessible to the bidders following the distribution of the encouragement to offer.

(2) For serious offering, regardless of whether open or restricted, the offering archives will
incorporate the accompanying, specifically:-

 invitation to offer;
 instructions to bidders;
 form of offer;
 form of agreement;
 general or extraordinary states of agreement;
 (f) specifications and drawings or performance criteria (where
pertinent);
 list of products or bill of amounts (where material);
 delivery time or fulfillment plan;
 qualification models (where pertinent);
 bid assessment models;
 format of all protections required (where material);
  details of guidelines (assuming any) that are to be utilized in evaluating the nature of
merchandise, works or administrations determined; and
 Any other detail not conflicting with these principles that the securing organization may
consider significant.
(3) Any data, that gets essential for offering or for offer assessment, after the encouragement to
offer or issue of the offering archives to the imminent bidders, will be given in an ideal way and on
equivalent chance premise. Where warning of such change, expansion, adjustment or cancellation
becomes fundamental, such notice will be made in a way like the first promotion.

(4) Procuring organizations will utilize standard offering archives as and when informed by guideline
by the Authority:

Given that offering archives effectively being used of getting offices might be held in their separate
utilization to the degree they are not conflicting with these principles, and till such time that the
standard offering records are determined by guidelines.

(5) The obtaining office will give a bunch of offering reports to any provider or temporary worker,
on solicitation and subject to installment of cost, assuming any.

Clarification.- For the reason for this sub-rule value implies the expense of printing and giving the
records as it were.

24. Reservations and preference.-

1. Procuring organizations will permit all imminent bidders to take an interest in acquiring
technique regardless of ethnicity, besides in cases in which any getting office chooses to
restrict such cooperation to public bidders just or disallow support of bidders of certain
identities, as per the approach of Federal Government.

2. Procuring organizations will take into account an inclination to homegrown or public

providers or contract based workers as per the strategies of the Federal Government. The
size of value inclination to be agreed will be unmistakably referenced in the offering reports
under the offer assessment standards.

25. Bid security.-

The procuring agency may require the bidders to outfit an offer security not surpassing five
percent of the offer cost.

26. Bid validity.-

 (1) A securing office, keeping in view the idea of the obtainment, will expose the offer to an
offer legitimacy period.

(2) Bids will be legitimate for the timeframe indicated in the offering record.

(3) The getting office will conventionally be under a commitment to measure and assess the
offer inside the specified offer legitimacy time frame. Anyway under excellent conditions and for
motivation to be recorded as a hard copy, if an augmentation is viewed as fundamental, each
one of the individuals who have presented their offers will be approached to expand their
particular offer legitimacy period. Such augmentation will be for not more than the period
equivalent to the time of the first offered legitimacy.

(4) Bidders who,-

o agree to augmentation of their offer legitimacy period will likewise broaden the
legitimacy of the offer bond or security for the all-encompassing time of the
offer legitimacy;

o agree to the obtaining organization's solicitation for expansion of offer

legitimacy period will not be allowed to change the substance of their offers;
and

o do not consent to an expansion of the offer legitimacy time frame will be

permitted to pull out their offers without relinquishment of their offer bonds or
protections.

27. Extension of time for submission of bids.-

Where Procurement agency has just endorsed a cutoff time for the accommodation of offers
and because of any explanation the getting office thinks that its important to expand such cutoff
time, it will do so simply subsequent to recording its reasons recorded as a hard copy

Furthermore, in an equivalent chance way. Commercial of such expansion in time will be done in
a way like the first ad.

OPENING, EVALUATION AND REJECTION OF BIDS

28. Opening of bids.-

 The date for opening of offers and the last date for the accommodation of offers
will be the equivalent. Offers will be opened at the time determined in the
 offering reports. The offers will be opened at any rate thirty minutes after the
cutoff time for accommodation of offers.

 All offers will be opened freely within the sight of the bidders or their delegates who may decide
to be available, at that point and spot declared before the offering. The acquiring office will
peruse so anyone might hear the unit cost just as the offer sum and will record the minutes of
the offer opening. All bidders in participation will sign a participation sheet. All offers submitted
after the time endorsed will be dismissed and returned without being opened.

29. Evaluation criteria.-

Procuring agencies will figure a suitable assessment standard posting all the important data
against which an offer is to be assessed. Such assessment standards will frame a basic piece of
the offering records. Inability to accommodate an unambiguous assessment rules in the offering
archives will add up to mis-acquirement.

30. Evaluation of bids.-

 All offers will be assessed as per the assessment standards and different terms and conditions
set out in the endorsed offering archives. Save as accommodated in sub-provision (iv) of
statement (c) of rule 36 no assessment standards will be utilized for assessment of offers that
had not been determined in the offering records.

 For the motivations behind correlation of offers cited in various monetary forms, the cost will be
changed over into a solitary money determined in the offering archives. The pace of trade will
be the selling rate, swaying the date of opening of offers indicated in the offering archives, as
informed by the State Bank of Pakistan on that day.

 A offer once opened as per the endorsed technique will be dependent upon just those
standards, guidelines and approaches that are in power at the hour of issue of notice for
greeting of offers.

31. Clarification of bids.-

(1) No bidder will be permitted to change or adjust his offer after the offers have been
opened. Anyway the getting organization may look for and acknowledge explanations to the
offer that don't change the substance of the offer.

(2) Any solicitation for explanation in the offer, made by the securing organization will
perpetually be recorded as a hard copy. The reaction to such demand will likewise be recorded
as a hard copy.
32. Discriminatory and difficult conditions.-

Save as in any case gave, no procuring agency will present any condition, which segregates
between bidders or that is viewed as met with trouble. In learning the biased or troublesome
nature of any condition reference will be made to the standard acts of that exchange, producing,
development business or administration to which that specific acquirement is connected.

33. Rejection of bids.-

(1) The procfurement agencies may dismiss all offers or recommendations whenever before
the acknowledgment of an offer or proposition. The acquiring organization will upon demand
convey to any provider or contractual worker who presented an offer or proposition, the
justification for its dismissal, all things considered, or recommendations, however isn't needed
to legitimize those grounds.

(2) The procurement agencies will bring about no risk, exclusively by excellence of its
summoning sub-rule (1) towards providers or temporary workers who have submitted offers or
proposition.

(3) Notice of the dismissal, all things considered, or proposition will be offered speedily to
all providers or temporary workers that submitted offers or recommendations.

34. Re-bidding.-

(1) If the procurement agency has dismissed all offers under guideline 33 it might require a
re-offering.

(3) The procurement agency before greeting for re-offering will survey the explanations behind
dismissal and may reexamine particulars, assessment models or some other condition for
bidders as it might consider significant.

35. Announcement of evaluation reports.-

The procurement agency will declare the aftereffects of offer assessment as a report
giving support for acknowledgment or dismissal of offers in any event ten days
preceding the honor of obtainment contract.