1

PROCUREMENT MANAGEMENT
AND
ORIENTATION TO PPRA RULES

By
Muhammad Tariq
Managing Director Pakistan WAPDA Foundation
10- Temple Road Lahore.
Dated : 30.10.2023 0313-4011529, 0334-4777649
 SEQUENCE OF PRESENTATION
PROCUREMENT MANAGEMENT
PROCUREMENT
•Main Principal of Procurement
•Procurement Chain
•Methods of Procurement
•Procedures of Procurement
•Evaluation Criteria

ORIENTATION OF ‘PPRA’ RULES

•PPRA Rules - 2004
•Amended Rules - 2020
•Amended Rules – 2021
•PPRA Rule 2010 and Procurement of Services

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PROCUREMENT
AND
CONTRACT MANAGEMENT

4
Procurement and Contract
management follows a logical order;
Procurement
Plan what you need to contract AND how you’ll do it.
Fixed your contract requirements and sent to Bidders.
Bidders will submit the proposals/ bids.
You pick the best one, and sign the contract.

Contract management
When work begins, you monitor and ensure the contract
is going under agreed conditions.
When the work is done, you close out as agreed
contract. 5
 PROCUREMENT
Procurement is the acquisition of goods, works
or services and disposal of public assets (added in
2020) generally via contract:
o At the economical cost,
o In right quantity and quality,
o At the right time and in the right place,
o For the direct benefit or use.

MAY FOLLOW:
Public Procurement Regulatory
Authority (PPRA) Rules

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 CONTRACT MANAGEMENT
Dealing with other party under the signed/agreed
conditions of contract or contract clauses.
It includes but not limited to:
 Extension Of Time (EOT)
 Variation Order (VO)
 Modification of clauses through amendments
 Payments
 Settlement of disputes (If any)

FOLLOW:
FIDIC Condition of Contract
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PROCUREMENT MANAGEMENT

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1. TYPES OF PROCUREMENT

Goods Services & Works

Other Services
 Services – Consultancy Services like
project studies, design, supervisions,
Expert advice, trainings or computer
programming, including other services etc;
 Works – for example; Hydropower Projects,
dams, bridges, buildings, harbors, highways
and E&M works; and
 Goods – typically equipment, material and
supplies, commodities, textbooks, medical
supplies etc.
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Quality
The term "quality" has a relative meaning. This is
expressed by the ISO definition:

“The totality of features and characteristics of a

product or service that bear on its ability to satisfy
stated or implied needs.”

Delivery of reliable information within an agreed span of

time under agreed conditions, at agreed costs, and with
necessary aftercare".
(The agreed conditions should include a specification as to
the precision and accuracy of the data which is directly
related to "fitness of use" and which may differ for different
applications)
 Specifications

Types of Specifications:
Four types:
– Proprietary Product Specifications
– Method Specifications
– End-result Specifications
– Performance specifications (generally recognized in
the construction industry)
2-Main Principal of Procurement
 Efficiency;
 Economy;
 Fairness;
 Reliability;
 Transparency;
 Value of money;
 Accountability and Ethical Standards.
Main Principles of procurements by PPRA-Rule-4:
Procurement process will be efficient and
economical, Fair and transparent and value for
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ESSENTIALS FOR PROCUREMENT
IN WAPDA
 WAPDA Composite Schedule of Rates- 2022

 WAPDA Procurement and Contract Manual-2022

 WAPDA Book of Financial Power-2022

 Public Procurement Rules- 2004, 2010, 2020 & 2021

REGULATORY BODIES AND
STANDARD BIDDING DOCUMENTS
GOVERNING LAWS AND REGULATIONS OF THE COUNTRY
Local Funding
PUBLIC PROCUREMENT RULES-2004 (amended till now) AND 2010
PEC’ s STANDARD BIDDING DOCUMENTS

Foreign Funding
• GUIDELINES AND STANDARD BIDDING DOCUMENTS OF DONORS:
oWorld Bank
oAsian Development Bank
oKfW
oJICA etc

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Mandatory Bidding Documents
Pakistan Engineering Council (PEC) approved
Documents
1. SBD ; Smaller Contracts (up to Rs. 25 million)
2. SBD ; Procurement of Civil Works (> Rs 25 million)
3. SBD; Procurement of E&M Works (>Rs 25 million)
4. ECS ; Fee less than Rs. 2 million (Lump Sum)
5. ECS ; Fee more than Rs. 2 million (Lump Sum)
6. ECS ; Fee more than Rs. 2 million (Time Based)

PPRA has also introduced SBDs for various

items
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PPRA STANDARD BIDDING
DOCUMENTS In pursuance of Section 27 of PPRA
Ordinance, 2002 read with Rule 23 of Public Procurement Rules,
2004, Public Procurement Regulatory Authority has been
developed following Standard Bidding Documents (SBDs) .
•PPRA National Standard Bidding Document (Therapeutic Goods -Pharmaceuticals)
(S.R.O 700(I)/2022).
•PPRA National Standard Bidding Documents (General Goods, Consultancy Services
and Closed Framework Agreements) (S.R.O 370(I)/2022).
 National Standard Bidding Document for Procurement of General Goods
 National Request for Proposal Document for Procurement of Consultancy
Services
 National Standard Procurement Document for Procurement of Good through
Closed Framework Agreements
 National Standard Bidding Document for Procurement of Therapeutic Goods
(Pharmaceuticals)
 National Standard Bidding Document for Procurement of Information System
(Supply and Installation)
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 FIDIC French word means:
INTERNATIONAL FEDERATION OF
CONSULTANCY ENGINEERS. Founded in:
1913.
FIDIC TRADITIONAL FORMS OF CONTRACT-1999

FIDIC continuously improving their publications and launching new

books
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19
3. Procurement Chain

Preparation Advertisement
EOI>RFP/ Sourcing Receipt and Opening
PQD>Bids (Potential Suppliers)

Bidding

Review By Contracts
Evaluation of Offers Committee

Approval by Award Contract/PO Contract

Competent Authority Management

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 PROCUREMENT / PROJECT CYCLE FOR GOODS, WORKS & CONSULTANTS
Identification
PROCUREMENT
PROCUREMENT Contract Packaging  Applicable Procedures
PLANNING
PLANNING Approval of Estimates/PC-II &  Target Dates
PC-I

PREQUALIFICATION
EOI/ prequalification  Evaluation of applicants
PREQUALIFICATION/ / Draft Prequalification  Approval of list of Pre-
SHORTLISTING
SHORTLISTING Documents qualified/ shortlisted
bidders/consultant
Selection of Standard
BIDDING
BIDDING Document
DOCUMENTS
DOCUMENTS Prepare of Draft Bidding Conditions of Contract
Document
Evaluation Criteria
 Specifications & Drawings
INVITATION
INVITATIONOFOFBIDS/
BIDS/
Proposals
Proposals Issue of RFP/Bid Document  Redressal of grievances
Opening of Proposals/Bids  Recommendations for
evaluation & comparison of award
bids

CONTRACT
CONTRACT  Modification of clauses  EOT
MANAGEMENT
MANAGEMENT through amendments  VO
 Dispute resolution 21
4-METHODS OF PROCUREMENT

International Competitive Bidding (ICB)

National Competitive Bidding (NCB)

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International Competitive Bidding (ICB)
The purpose of International competitive bidding is to
achieve best value for money especially for large and
complex works by providing equal and fair opportunity to
potential bidders internationally. It is suitable when:
 There is an interest by foreign suppliers or bidders in
works or supplying the required goods;
 The requirements for the procurement aspect of the
project are widely available internationally; and
 The capacity of local bidders is not sufficient to meet the
qualification requirements of large and technically
complex projects.

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National Competitive Bidding (NCB)
National Competitive Bidding is essentially open competitive
bidding for procurement of works, goods and services at national
level. It is suitable when:
The values of works, goods and services being procured are small
in relation to the effort that international bidders need to tender;
The capability and competitiveness of local bidders makes it
unattractive for foreign bidders to compete for contracts below a
certain value;
The contract involves a significant transportation component and
are labor intensive; and
Small works to be executed in remote areas or work in spread in
areas.

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25
CONTENTS OF BIDDING DOCUMENT
• Instructions to Bidders.
• Bidding Data.
• Bid forms (Technical and Financial)
• Evaluation Criteria
• General Conditions of Contract, Part-I (GCC).
• Particular Conditions of Contract, Part-II (PCC).
• Specifications - Special Provisions.
• Specifications - Technical Provisions.
• Form of Bid & Appendices to Bid.

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5-EVALUATION CRITERIA FOR WORKS
TECHNICAL CRITERIA
• Similar Projects
– 1 to 3 Nos. of similar project completed/ substantially
completed during last 5 to 10 years

– Similarity shall be based on the physical size, complexity,

methods/technology and/or other characteristics

• Key Activities
– Volume, Number or rate of production of any key
construction activity (or activities) one or more contracts
combined if executed in same period, like:
• Rate of RCC work in m3/month
• Rate of excavation in m3/month

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 EVALUATION CRITERIA FOR WORKS
FINANCIAL CRITERIA
 Based on average of last 3 to 5 years audited balance sheets
 Financial Capabilities:
 Net worth should be positive
 Availability of liquid & real assets
 Lines of credit and other Financial means less contractual
advance in any other contract
• Capacity of Cash Flow for 4 months
– (Estimated cost / Project duration in months) x 4
• Capacity of Average Annual Turnover
– (Estimated cost / Project duration in years) x 1.5

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 EVALUATION CRITERIA FOR HIRING OF CONSULTANT
(i) Specific experience of firm/JVs relevant to the Assignment: [weight 0 to 10]
(ii) Adequacy and quality of the proposed methodology, and work plan in
responding to the Terms of Reference (TORs): [Weight 20 to 50]
{Notes to Consultant: the Client will assess whether the proposed methodology is clear, responds to
the TORs, work plan is realistic and implementable; overall team composition is balanced and has an
appropriate skills mix; and the work plan has right input of Experts}

(iii)Key Experts’ qualifications and competence for the Assignment:

a) Position K-1: [Team Leader] [Insert points]
b) Position K-2: [Insert position title] [Insert points]
c) Position K-3:[Insert position title] [Insert points]
Total points for criterion (iii): [Weight 30 - 60]
sub-criteria and relevant percentage weights:
1) General qualifications(general education, training, and experience): [ weight 10 to 20 %]
2) Adequacy for the Assignment(relevant education, training, experience): [weight 60 to 80%]
3) Relevant experience in the region (working level fluency in local language(s)/knowledge of local culture
or administrative system, government organization, etc.): [ weight 0 to 10 %]
Total weight:
100%
 EVALUATION CRITERIA FOR HIRING OF CONSULTANT
iv) Transfer of knowledge (training) program (relevance of approach
and methodology): [weight 0 to10]

(v) Participation by nationals among proposed Key Experts [0 to

10]
• [not to exceed 10 points] [Sub-criteria shall not be provided. Calculated as a ratio of the national Key
Experts’ time-input (in person-months) to the total number of Key Experts’ time-input (in person-
months) in the Consultant’s Technical Proposal]

Total points for the five criteria (i+ ii+ iii+ iv+ iv): 100
The minimum qualifying technical score (St):
[ranges 70 to 85 on a scale of 1 to 100]

In QCBS Method Technical Weight 70-90% & Financial 10-30% .

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ORIENTATION OF “PPRA” RULES
 PUBLIC PROCUREMENT REGULATORY
AUTHORITY (PPRA)
• ORDINANCE – 2002 (Amended in 2020)

• RULES – 2004

• REGULATIONS – 2008, 2009, 2010, 2011

• PPRA Rules Amended in 2020

• PPRA Rules Amended in 2021

• Instructions & Explanations

• QUESTION/ ANSWERS
1-PPRA RULES – 2004

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 Rule No. 2 DEFINITIONS
“bid” means a tender, or an offer, in response to an invitation, by a
person, consultant, firm, company or an organization expressing his
or its willingness to undertake a specified task at a price;

“competitive bidding” means a procedure leading to the award of a

contract whereby all the interested persons, firms, companies or
organizations may bid for the contract and includes both national
competitive bidding and international competitive bidding;

“emergency” means natural calamities, disasters, accidents,

war and operational emergency which may give rise to
abnormal situation requiring prompt and immediate action to limit
or avoid damage to person, property or the environment;

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 Rule. 5
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 to prevail to the extent of such
conflict.
PPRA Rules 2004 - Other Key Points
• Integrity Pact for all procurements beyond Rs. 10 million (Rule 7)

• Specifications to be generic i.e not to be vendor driven (Rule 10)

• Discriminatory & difficult conditions not allowed (Rule 32)

• Bid Evaluation (Rule 29 – 31); Failure to provide for an

unambiguous evaluation criteria in the bidding documents shall
amount to mis-procurement. Clarifications not to alter the bid.
• Bid negotiations not allowed (Rule 40) (Amended in 2020)

• Single bid may be accepted.

• Registration of bidders not allowed.

• No short or Gallop tendering.

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 RESPONSE TIME

PPRA Rule No. 13:

• Time from the date of publication of an advertisement or
notice to the date of receipt of bids mentioned in notice.

• Shall not be less than 15 days for National Competitive

Bidding.

• 30 days for International Competitive Bidding.

 PRE-QUALIFICATION OF SUPPLIERS
AND CONTRACTORS
PPRA Rule No. 15(2) QUALIFICATION CRITERIA
A procuring agency while engaging in pre-qualification may
take into consideration the following factors, namely:-
(a) Relevant experience and past performance;
(b) Capabilities with respect to personnel, equipment,
and plant;
(c) Financial position;
(d) Appropriate managerial capability; and
(e) Any other factor that a procuring agency may deem
relevant, not inconsistent with these rules.
PROCUREMENT METHODS UNDER PPRA RULES-2004

Rule- 21. Open competitive bidding.

Subject to the provisions of rules 22 to 37 the
procuring agencies shall engage in open
competitive bidding if the cost of the object to be
procured is more than the prescribed financial
limit which is applicable under sub-clause (i) of
clause (b) of rule 42.

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 BIDDING DOCUMENTS

PPRA Rule No. 23

• Procuring agencies shall formulate precise and
unambiguous bidding documents that shall be made
available to the bidders immediately after the
publication of the invitation to bid.

• A Procuring agency when engaged in procurement of

works, shall use the standard form of bidding
documents prescribed by the Pakistan Engineering
Council constituted under the Pakistan Engineering
Council Act, 1975 (V of 1976). (S. R. O. 805(I)/2008. )
 BID VALIDITY
PPRA Rule No. 26
• 1. Bids shall be valid for the period of time specified in the
bidding document.
• 2. Extension shall be for not more than the period
equal to the period of the original bid validity
• 3. Bid validity period extension shall also lead to extension
in the validity of the bid security
• 4. Not to change the substance of their bids
• 5. Who do not agree to an extension of the bid validity
allowed to withdraw their bids without forfeiture of their bid
securities.
 REJECTION OF BIDS
PPRA RULE NO. 33

• (1) May reject all bids or proposals at any time prior to the
acceptance of a bid or proposal.
Only convey the grounds for rejection of all bids or
proposals, but is not required to justify those grounds.
• (2) Notice of the rejection of all bids or proposals shall be
given promptly to all suppliers or contractors that
submitted bids or proposals.
 RE-BIDDING
PPRA RULE NO. 34
• Re-bidding allowed if bids rejected;

• Assessment of reasons for bids rejection;

• Removal of faults by revising specifications, evaluation

criteria/ any other condition for bidders as it may deem
necessary.
 SINGLE RESPONSIVE BID IN
GOODS, WORKS AND SERVICES.
PPRA RULE No. 38B (amended in 2021)
(1) The procuring agency shall consider single bid in goods, works and
services if it-
a) meets the evaluation criteria, ensures compliance of
specifications and other terms & conditions expressed in
advertisement or bid solicitation documents;
b) is not in conflict with any provision of the Ordinance;
c) conforms to the technical specifications;
d) has financial conformance in terms of rate reasonability:
Provided that except unsolicited proposal, in case of pre-qualification
proceedings single bid shall not be entertained.
(2) The procuring agency shall make a decision with due diligence and in
compliance with general principles of procurement like economy,
efficiency and value for money.
 Performance Guarantee

PPRA Rule No. 39:

• Where needed and clearly expressed in the bidding documents,
the procuring agency shall require the successful bidder to
furnish a performance guarantee which shall not exceed ten
percent of the contract amount.
ALTERNATIVE METHODS OF PROCUREMENT
Petty Purchases(PPRA Rule 42a)
• Up to Rs 100,000/ , No bidding, single quotation. (Amended in 2020)
Quotation (PPRA Rule 42b)
• From Rs 100,000 to 500,000. (Amended in 2020)
• Lowest of 3 quotations from GST registered firms, original equipment
manufacturers or authorized dealers,.
• Provided object of procurement has standard specs.

Direct Contracting (PPRA Rule 42c)

• Acquisition of spare parts or services from original manufacturer or supplier
whereas same are not available from alternative sources;
• Repeat order upto 15% of original Procurement;
• In case of emergency;
• If only one manufacturer or supplier exists;
• Change of supplier would result incompatibility or technical difficulties in
O&M that contract do not exceed three years in duration;

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• Price fixed by the government or any other authority,
agency or body duly authorized by the Government, on
its behalf; and
• Purchase of motor vehicle at manufacturer’s price
Negotiated tendering (PPRA Rule 42d)
• For specific piece of research etc;
• For technical or artistic reasons or for reasons connected with
protection of exclusive rights or intellectual property; and
• Extreme urgency brought about by events unforeseeable by the
procuring agency, the time limits laid down for open and limited
bidding methods cannot be met. The circumstances invoked to
justify extreme urgency must not be attributable to the procuring
agency :

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PPRA Rules 2004
LOWEST BIDDER MAY NOT BE
“THE RESPONSIVE LOWEST EVALUATED BIDDER”
the
The general perception that when the tender is opened the Bid which is
lowest at the time of Tender Opening is the Lowest Bid and shall be
awarded the Tender.

responsiveness
After Tender Opening preliminary
of all Bids.
checks are required to determine the

requirements
A bid is non-responsive and not to be considered for evaluation, if the mandatory
are not fulfilled by the bidder.

carried
After the responsiveness check, the evaluation of only the Responsive Bids are
for determining the Cost of Bids, which in case of Equipment Supply also
includes the lifecycle cost of the equipment.

prices,
The evaluated tender prices of all Bids thus arrived are the responsive evaluated
and the lowest amongst them is awarded the tender.
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2-AMENDED RULES - 2020

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 Important Amendments in PPRA 2020
 e-Procurement (Rule-7A): use of information and
communication technologies or digital or electronic means for
procurement process.

 Framework agreements (Rule-16A&B):

• Place Number of orders in agreed period and conditions by
“open framework agreement (without agreed price)” or “closed
framework agreement (with agreed price)”
• Maximum duration for open framework agreements shall not
more than 3 years and for closed framework agreements shall
not exceed 1 year.
• The Authority (PPRA) shall make regulations/templates for
procurement through framework agreements.
• The procuring agency shall determine the factor/%age for price
adjustment approved by the Principal Accounting Officer (PAO).
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 Most advantageous bid (Rule-2h):
• This may be in case Single Stage Two Envelope
procedure and Two Stage procedures.
• A bid or proposal found substantially responsive and
evaluated highest ranked based on cost or quality or
qualification or any combination which shall be in
conformity with the selection techniques to be issued by the
Authority (PPRA).
 Acceptance of Single responsive bids/proposals (Rule-38B):
 Unsolicited Project Proposal (Rule-37A)
• Proposal containing unique or innovative idea.
 Limitation on negotiations (Rule-40):
• Negotiation allowed without changing the cost and scope.
• Authority (PPRA) may determine the extent and types of
negotiations.
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PROCUREMENT ADVERTISEMENT
(amended 2020)
PROCEDURES OF OPEN COMPETITIVE BIDDING
PPRA (Rule- 36)
1. Single stage – one envelope procedure
2. Single stage – two envelope procedure
Amended in 2020 and added: (ix) the bid found to be the
*[most advantageous bid] shall be accepted

3. Two stage bidding procedure

Amended 2020: (viii) ------ The bid found to be the
*[most advantageous bid] shall be accepted.

4. Two stage – two envelope procedure

(x) ---------- the bid found to be the *[most
advantageous bid] shall be accepted.
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3-AMENDED RULES - 2021

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 Important Amendments in PPRA 2021
 Specifications (Rule-10)

 Blacklisting and Debarment (Rule-19)

 Reservations and Preferences (Rule-24)

 Bid Security (Rule-25)

 Announcement of Evaluation Report (Rule-35)

 Bid Discount (Rule-38A) Deleted

 Confidentiality (Rule-41)

 Force Account (Rule-42e)

 Direct contracting with State owned entities (Rule-42f)

 Redressal of grievance by the Procuring agency

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 SPECIFICATIONS
PPRA Rule No. 10 (Amended In 2021)
For works, goods & services

 Shall Allow the widest possible competition.

 Shall not favor any single contractor or supplier nor put others at
a disadvantage.
 Shall be generic.
 No brand name, model no. etc.
 If reference to brand name/ catalogue number is essential, the
word “or equivalent” shall be used. The procuring agency is
responsible to define the parameter of “equivalence” for all
participants to procurement process to ensure transparency.
BLACKLISTING OF SUPPLIERS
AND CONTRACTORS
PPRA Rule No.19 (amended in 2021)
Blacklisted and cross debarred for participation in
respective category of public procurement or
disposal proceedings not more than:
• 10 years for corrupt and fraudulent practice
• 03 years, if fails to perform contractual obligations
• 06months if fails to abide with a bid securing
declaration, however without being indulged in
any corrupt and fraudulent practice
 BID SECURITY
PPRA RULE No. 25 (amended in 2021)

• Fixed amount of bid security not exceeding five

percent of the estimated value of procurement.

• Where bid security is not required by the procuring

agency – Bid security declaration
ANNOUNCEMENT OF EVALUATION
REPORTS
Force Account (PPRA Rule 42e) added in 2021
If value of procurement does not exceed two hundred million PKR.
Conditions:
i. For small works, scattered, remotely located where qualified firms are
unlikely to bid at reasonable prices.
ii. Without disrupting ongoing progress.
iii. Urgent repair, rehabilitation & remodeling works of national heritage
iv.Unavoidable risks are better bore by state-owned entity than that of
Contractor.
v. Extreme urgencies.
vi.Sensitive nature project and information cannot be shared with private
sector.
State owned entity shall accomplish the work
exclusively through its own resources without
involving private sector.
Where more than one State owned entity, limited
competition shall be held without advertisement.
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Direct Contracting with State owned entities (PPRA Rule
42f) added in 2021

For works & services which are time sensitive and in the public
interest.
Conditions:
i.Organization/ body engaged shall be eligible to perform.
ii.State owned entity shall accomplish the work exclusively
through its own resources without involving private sector or
JV.
iii.Where more than one State owned entity, limited competition
shall be held without advertisement.
iv.Devise a mechanism for determining price reasonability.

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 FORCE ACCOUNT (42e)
VS
DIRECT CONTRACTING WITH STATE OWNED
ENTITIES (42f)

42e 42f
Procurement of small Procurement of works and
works & non-consultancy services including
services consultancy services which
Procurement does not are time sensitive and in
exceed Two hundred public interest.
million PKR.

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 POSTING OF CONTRACT
AWARDS ON PPRA’S WEBSITE
• All procuring agencies whether within or outside
Pakistan shall ensure that all documents related to the
evaluation of bid and award of Contract without any
reference to the Contract Amount be made public and
all such documents be provided to PPRA w.e.f.
01.07.2021 for statistical analysis as well as publishing
on PPRA’s website.
• PPRA Letter dated 01.07.2021.
 REDRESSAL OF GRIEVANCES
BY THE PROCURING AGENCY
PPRA RULE NO. 48 (amended in 2021)
• Any party may file complain before proposal submission
deadline regarding evaluation criteria, eligibility parameters
etc.
• Any party after submission of bid feeling aggrieved by the act
of procuring agency may file complain after submission of bid:
– Within 07 days of announcement of TER.
– 05 days after the issuance of Final Evaluation Report (FER)
 REDRESSAL OF GRIEVANCES
BY THE PROCURING AGENCY
• Complain on TER, GRC shall suspend procurement
proceedings
• Complain after FER, no object on TER cannot be
raised.
• GRC will finalize within 10 days of complain receipt.
• Non-satisfaction of GRC response leads to appeal before
PPRA within 30 days of communication of decision by paying
fee. PPRA decision shall be final.
 4-PPRA Rule 2010
AND
PROCUREMENT OF
SERVICES
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 PROCUREMENT OF
CONSULTANTS
1.REQUEST FOR PROPOSAL
The RFP includes:
• Letter of Invitation (LOI );
• Instructions to Consultants (ITC), including a Data
Sheet and Evaluation Criteria;
• Technical proposal standard forms;
• Financial proposal standard forms;
• Terms of Reference (TOR); and
• Standard form of contract Agreement.
• Time Based Contract
• Lumpsum Contract
2. Terms of Reference
Before the process of recruitment of a
consulting firm starts, the objective and
scope of the proposed work, and the
functions and duties to be assigned to the
consultants should be clearly and
adequately defined in the TOR.
2.Estimation of Input/Costs
Estimation of Time Inputs
– Activity schedule
– Staffing Schedule

Estimation of Cost Input

• Remuneration Cost
– Salary cost
– Social charges
– Overhead costs
– Fee
– Project allowance or Field Allowance
• Direct (Non-Salary Cost)
• Contingencies
• Indirect and Direct taxes
• Provisional Sum for investigations/ studies etc

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 SELECTION METHODS
AVAILABLE
• Quality and Cost Based Selection (QCBS)
• Quality Based Selection (QBS)
• Fixed Budget Selection (FBS)
• Least Cost Selection (LCS)
• Selection based on Consultants’ Qualifications
(CQS)
• Single Source Selection (SSS)
 PPRA-2010 Rule-3 : Methods for Selection
 Method of Procurement of Consultancy Services
depends upon nature, size and complexity of works,
goods or other tasks for which Services are required.
Following common methods may be used considering
quality, time and other aspects:
1.Quality based Selection (QBS);
This method is appropriate for complex and high value
projects of national importance. Cost will not be factor in
selection. However, rationality and fairness of fee
structure shall be examined before award of contract.
This method adopted in hiring of services for
Construction supervision of Basha and Mohamand Dam
projects 76
2. Quality and Cost Based Selection(QCBS);
 Most commonly used method approved by
Authority 80:20
 This method shall be used where quality is the
prime consideration while cost is the secondary
consideration.
3. Fixed Budget Method; and
4. Least Cost Method(LC).

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 Why Organizations Fail to Manage Contracts
Successfully
 Poorly drafted contracts;
 Inadequate resources are assigned to contract
management;
 Client team does not match the Contractor/Consultant
team in terms of either skills or experience (or both);
 Wrong people are put in place, leading to personality
clashes;
 The context, complexities and dependencies of the
contract are not well understood;

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 CONCLUSIONS
 Formulate well thought procurement strategy.
 Depute technically sound team for procurement.
 Follow the procurement rules and applicable guidelines.
 Ensure substancial completion of design, finances and site
possession before award.
 Select best possible Consultants & Contractor.
 Deal with unforeseen physical conditions /eventualities with best
of competence.
 Avoid variations to the possible extent.
 Be visionary and pro-active; act “A step ahead of time”.

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THANK YOU