Course Content

Chapter 1: Concept of Procurement – 8 Marks

Chapter 2: Procurement Planning – 8 Marks
Chapter 3: Methods of Procurement – 10 Marks
Chapter 4: Types of Procurement – 10 Marks
Chapter 5: Present Procurement Rules and Regulations
(Procurement of Consulting Services) – 8 Marks
Chapter 6: Present Procurement Rules and Regulations
(Procurement of Works and Goods) – 10 Marks
Chapter 7: Contract Management – 10 Marks
Chapter 8: Introduction to Guidelines – 8 Marks
Chapter 9: Technical Audit – 8 Marks
 Course Content
Tutorial
Prepare procurement master plan
Prepare typical tender notice
Bid-Evaluation
Practical
Prepare Contract Document
Field Visit for Technical Audit
Project Work
Case Studies – 5 nos.
 
 Chapter 1

Concept of Procurement
 What is Procurement ?

• Simply buying some thing expending money

• Means the acquisition of goods, consultancy
services or other services, procurement or causing
procurement of an construction work

Types
• Private Procurement
• Public Procurement
 Public Procurement
A procurement made with Public Money is called
Public Procurement.
Public Entity
• Constitutional organs or bodies
• Ministries
• Secretariats
• Commissions
• Department of the government of Nepal
• Any other governmental entities
• Corporations, companies, bank or board fully or in
majority owned or controlled by the government
 Public Entity Cont…
• Commissions, corporations, authorities, academies,
boards, centers, councils or other corporate bodies of
a similar nature which are formed by government.
• Universities, colleges, research centers and other
academic and educational institutes of similar nature
which are operated by government or receive grant
fully or in majority from government.
• Local bodies
• Development boards formed under development
board act.
• Bodies operated with loan or grant of government
• Such other bodies as declared by government as
public entity
 Public Procurement cont…

• Procurement of Goods, Procurement of Works &

Procurement of Consultancy and other Services
• More than 60 % of public money is expended in
public procurement
• The world bank estimates that about 90- 95%
expenditure on a project is incurred through
procurement
• Public procurement is important part of Public
Financial Management System
 Public Procurement cont…

Public procurement does not permit subjective or

unrestrained buying.

This may be with regard to,

•Item
•Quality
•Quantity
•Methodology

All procurements have to undergo scrutiny, and there

are well laid norms.
 Public Procurement cont…
 Mistakes and lapses in Public Buying can cause grief
to the organization or individuals
• Audit /Vigilance reviews
• Penalty and punishments
Why Public Procurement important ?
• It influences economic growth
• Efficiency in public procurement releases funds for
development
• It is a tool to meet social and economic objectives
• It affects quality of life of the citizens
• The public servant is accountable
 Objectives of Public Procurement
 3 R’s.
• Right item,
• Right price
• Right time
• Efficiency
• Value for money

Special Objectives of Public Procurement

• Equal access and non-discrimination
• Transparency of process and decisions
• Accountability of process and officials
• Social Objectives
 Requirements in Public Procurement

 Legal Arrangement
 Institutional Arrangement
 Sound Bidding documents
 Guidelines
 Efficient Manpower

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Private Organizational Procurement versus
Public Procurement
Private Organizational Procurement
• Profit is sole motive
• Procedures are not of primary importance

Public Procurement
• Economy is a consideration but profit is not a motive
• Procedures are of primary importance
• Public money must be spent for public good
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Procurement of works, goods, other services
and consulting services
• Goods means any kind of goods, whether movable or
immovable, and this term also includes services
incidental to the supply of such goods.
• Construction work means all work associated with
the construction, reconstruction, demolition, repair or
renovation of any structure or works such as site
preparation, excavation erection, building, installation
of equipment or materials and decoration and also
includes services incidental to construction work such
as mapping, laboratory testing, satellite photography
and seismic investigation.
13
Procurement of works, goods, other services
and consulting services

• Consultancy services means any study, research,

survey, design, drawing, supervision, training, testing,
software development services or other intellectual or
professional services.

• Other services means hiring motor vehicles,

equipments or goods, transportation or repair and
maintenance of goods

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 Procurement Process
Depends on situation and procurement price
•Open Bidding
•Limited bidding

(A)Goods, construction and other services

• Open Bidding
 ICB (International Competitive Bidding)
 NCB (National Competitive Bidding)
 One stage
 With prequalification
 Without prequalification
 Two stage
 Procurement Process
• Sealed Quotation
• Direct purchase
• Community participation
• Force account (अमानत)
• Emergency procurement
(B) Consultancy Service
• Competitive Proposal
 International level
 National level
• Direct Procurement
• Proposal from standing list
• Direct negotiation
 Important Provisions of Public
Procurement Act 2063
• Establishment of Public Procurement Monitoring
Office (PPMO)
• Responsibility of Public Procurement to Procurement
Unit
• Master procurement plan and Annual Procurement
plan
• Procurement proceedings or review of decisions
• Open call for tender and equal access to bidders
• Neutral Specification
 Important Provisions of PPA cont..

• Code of conduct for the persons involved in

procurement
• Contract award to lowest substantially responsive
bids
• Shall not be rejected even if one bid is substantially
responsive or only one bid is registered
• Public notice shall be published incase of
emergency procurement
• Public notice of contract agreement shall be
published
 Procuremen Preparation of
t Planning bidding documents

Post Contract
Review Notice for
PQ or EOI

Contract Procurement
Implementation Cycle Bid invitation
Issuing of RFP

Contract Pre-Bid or Pre –

Award Proposal meeting

Bid or Proposal Bid or Proposal

Evaluation opening
Any Question?