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Procurement Life

Cycle
HUNAIN PERVEZ
M. TALHA JAHENZEB
NOUMAN RASHEED
ZAHID ALI

Attock Petroleum Limited


Morgah, Rawalpindi

PROCUREMENT POLICY &


PROCEDURES

Attock Petroleum
Limited
Attock
Petroleum
Limited
was
incorporated
as
public
limited
company on December , 1995.
The principal activity of the Company
is procurement, storage and
marketing of petroleum and
related products.

Introduction
Procurement Life Cycle:
Need Recognition
Specific Need
Source Options
Price and Terms
Purchase Order
Delivery
Expediting
Invoice Approval and Payment
Record Maintenance

Procurement Life Cycle of APL

Procurement
Short listing of Vendor
Bid Committee
Assessing Quotations
Disposal of Fixed Assets
Performance Assessment of
Vendor(s)

Plan Procurement
Pre-budget proposal stage by the
User Department.
Request for Procurement forwarded
by the Head of User Deptt to the
Procurement Deptt.
(If not planned 1st appoved by CEO
then Forwarded to Procurement
Deptt)

Procurement
All purchasing will be through
competitive bidding. In cases all
supporting evidence of non competitive
conditions will be documented.
Exceptions:
item, project, transaction less than Rs.
100,000/-.
less than Rs. 100,000/- purchase by User
Department.
one supplier of the specified material in the
market.
specifically approved by CEO to meet an
emergent situation.

Short listing of Vendor


Pre-qualification process will be initiated by
procurement department in coordination
with the user department.
New vendor(s) shall be invited yearly or as
& when required through formal channel.
Criterion for assessing products or services
offered is performance capability,
brand, delivery time, quality and cost
etc.
vendor(s) registered with Income
Tax/Sales Tax authorities shall be
considered for approved list of vendors.

Procedure:
Vendor selection forms for potential vendor
Addition or Deletion in approved vendor
with consent Head of Finance, User and
Procurement deptts.
If Specific vendor is being requested, Head
of User Deptt will raise an internal memo to
Head of Procurement Deptt for consent.

Bid Committee
Bid committee approving authorities based on the
approval limits.
CEO over Rs. 1 Million.
Head of Finance and Marketing (Jointly) up to Rs. 1
Million (Copy to CEO for Information) .

Policy & Procedure:


Competitive bidding will be deposited in the quotation box.
Bid Committee Members open the quotation box on the
opening date.
Committee Members will nominate with the approval of
management.
Bid Committee has the right to accept or reject a bid with
reasonable reason.

Important terms and conditions shall be mentioned on the


bid invitation form

Assessing Quotations
Policy & Procedure:
non negotiable clauses will be rejected.
offer should be valid for a reasonable
period.
bid will be rejected after opening date
unless accepted by 3 committee members.
in case of less then 3 bids, same will
treated by the committee members.
Assessing quotations checklist:

technical experience in the relevant trade


delivery program
warranties and guaranties offered
any other general item

Disposal of Fixed Assets


Policy & Procedure:
Approval of Board of Governors
User Function -> company secretary ->
Procurement Deptt
Public Auction
Auction on accumulation items
Auction in 30 days after approval
Physical check by user function deptt
Finance Deptt -> Board of Governors -> quarterly
bases
Finance Deptt -> Procurement Deptt -> Disposal
Process
News paper Advertisement -> 10 days -> bid time
CEO final note of Approval

Performance Assessment of
Vendor(s)

Policy & Procedure:

To ensure capability of material, required


specification, reasonable prizes, delivery
schedule
Assessment of vendor(s) carried out periodically
Record of quotations, deliveries, and rejections
shall be used to assess price, delivery, and
value performance
Areas of improvements shall be discussed with
vendor(s)
If Vendor is excluded from future business with
APL, the reasons and recommendations shall
be prepared and approved

Thank You !!