WATER AND POWER DEVELOPMENT AUTHORITY

PROCUREMENT & PPRA RULES

Dated :25.08.2022

ENGR. ADNAN YOUSAF

CENTRAL CONTRACTS CELL, WAPDA
PROCUREMENT MANAGEMENT
 PRIOR TO
PROCUREMENT
PLANNING
PROCUREMENT MANAGEMENT LIFE CYCLE
 PRIOR TO PROCUREMENT
 Process flow for development projects

 Project cost more than Rs. 500 million – make PC-II

 Project cost less than Rs. 500 million – make PC-I

 PRIOR TO PROCUREMENT
Sanctioning authority of Approving Forums

Approving Authority Cost Limit

Departmental Development Working Party (DDWP) Up to Rs. 1,000 million

Central Development Working Party (CDWP) Above Rs. 1,000 million

upto Rs. 7,500 million
Executive Committee of National Economic Council More than Rs. 7,500
(ECNEC) million
 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
 WHAT IS PROCUREMENT
Procurement is the acquisition of

Goods Services Works

from an external source, wholly or partly
financed out of the public fund.
 NEED FOR REFORM
IN PROCUREMENT PROCESS
OF PAKISTAN
AND CREATION OF PPRA
WORLD BANK RECOMMENDATIONS
 PUBLIC PROCUREMENT REGULATORY
AUTHORITY (PPRA)

• ORDINANCE – 2002
Amended July 2020
Public procurement of disposal of public assets

• RULES – 2004
Amended May 2020
Amended June 2021

• REGULATIONS – 2008, 2009, 2010, 2011

• INSTRUCTIONS & EXPLANATIONS

PPRA RULE NO. 4
 Step-1
PLAN PROCUREMENT
 METHOD
OF
PROCUREMEN
T
 PPRA RULE NO. 13
International Competitive Bidding (ICB)
Minimum response time shall not be less than 30
days from the date of advertisement

National Competitive Bidding (NCB)

Minimum response time shall not be less than 15
days from the date of advertisement
 T4th Ext. HPP (for works)

ICB - More than US$ 3 Million

Mandatory PQ - More than US$ 10 Million
NCB - Less than US$ 3 Million
T4th Ext. HPP (for goods)

ICB - More than US$ 0.5 Million

NCB – upto US$ 0.5 Million
PRINCIPAL METHOD OF PROCUREMENT:
OPEN COMPETITIVE BIDDING
(PPRA RULE-20)
PPRA Rule-36
 Alternative Methods of Procurement
(Rule 42)
sub-clauses (e & f) are added in June 2021

(a)
Petty
Purchases (b)
Request for
Quotation
(c)
Direct
Contracting (d)
Negotiated
Tendering
 42(a) PETTY PURCHASES

• If below the limit of Rs. 100,000/- Rs. 25,000/-

• Exempted from the requirement of bidding or
quotation of Prices.
42(b) REQUEST FOR QUOTATION

• More than Rs. 100,000/- 25,000/- but does not exceed

Rs. 500,000 (previously it was Rs. 500,000/- for
autonomous bodies)
•
• Standard specifications

• Minimum of 03 quotations required from GST

registered firms
42(c) DIRECT CONTRACTING
Conditions:
 Acquisition of spare parts or supplementary services
from the original manufacturer

 Only one manufacturer or supplier exists

 Repeat orders not exceeding 15% of the original

procurement

 Change of supplier would lead to having different

technical specifications or characteristics
 42(d) NEGOTIATED TENDERING
 Conditions:

• Specific piece of research or an experiment, a study or a

particular development;

• For technical or artistic reasons, protection of exclusive

rights or intellectual properly;

• Extreme urgency. The circumstances invoked to justify

extreme urgency must not be attributable to the procuring
agency;
 FORCE ACCOUNT (42e)
VS
DIRECT CONTRACTING WITH STATE
OWNED ENTITIES (42f)
42e 42f

Procurement of small works & Procurement of works and

non-consultancy services. services including consultancy
services.
Procurement does not exceed Two
hundred million PKR.

Time & cost effective Time sensitive and in public

interest.
Urgent repairs & remodeling works
of national heritage

Extreme urgencies
 FRAMEWORK AGREEMENTS

PPRA RULE 2(1)bb (newly inserted in 2020)

Closed Framework Agreements (specified
terms and conditions with agreed price)
Not to be more than 1 year

PPRA RULE 2(1)ha (newly inserted in 2020)

Open Framework Agreements (specified
terms and conditions without agreed price)
Not to be more than 3 years
 PPRA RULE 51

• Overriding Effect
 PRE-
QUALIFICATI
ON
OF
APPLICANTS
 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
 Rule-23
BIDDING
DOCUMENT
S
PPRA STANDARD BIDDING DOCUMENTS
vide notification dated 24.06.2022
 National SBD for procurement of general goods
 National Standard RFP for procurement of
consultancy services
 National SPD for procurement of goods through
closed framework agreements
 National SBD for procurement of therapeutic goods
 National SBD for procurement of information system
(supply and installation)
 STANDARD FORMS OF CONTRACT

Pakistan Engineering Council

(PEC) approved Documents
 SBD ; Smaller Civil Contracts (up to Rs. 25 million)
 SBD ; Procurement of Civil Works (> Rs 25 million)
 SBD; Procurement of E&M Works (>Rs 25 million)
 PRICE ADJUSTMENT

 PEC issued new document on 29.06.2022

 Applicable for all civil, electrical and mechanical
contracts
 Applicable on Item Rate and Lumpsum contracts
 Applicable on each cost element having cost impact of
3% or higher
 Fixed portion shall not be less than 25%, adjustable
portion shall not be more than 75%
 Contracts having duration six months or more
 PRE-
QUALIFICATI
ON
OF
CONSULTANTS
 REQUEST
FOR
PROPOSAL
With/ without Short-listing/Pre-
qualification of Consultants
 METHODS FOR SELECTION OF
CONSULTANTS
1. Quality and Cost Based Selection (QCBS)
2. Quality Based Selection (QBS)
3. Least Cost Selection method
4. Fixed Budget Selection
5. Single Source/ Direct Selection
6. Consultants Qualification Selection (CQS)

 QCBS is the preferred selection method.

 FIDIC believes clients should use
 RFP DOCUMENTS
The RFP includes the following documents:
• Section 1 - Letter of Invitation
• Section 2 - Instructions to Consultants (including
Data Sheet)
• Section 3 - Technical Proposal - Standard Forms
• Section 4 - Financial Proposal - Standard Forms
• Section 5 - Terms of Reference
• Section 6 - Standard Forms of Contract
• Section 7 - List of eligible Countries
 TYPES OF TECHNICAL PROPOSALS

The RFP includes the following documents:

• Full Technical Proposal (longest and detailed
technical proposal format) – estimated contract
amount more than US$ 1 Million

• Simplified Technical Proposal – more than US$ 0.4

Million upto US$ 1 Million

• Bio data Technical Proposal – upto US$ 0.4 Million

FORM OF CONTRACT AGREEMENT
For Consultancy Contracts fee over Rupees two
(2.0) Million.
• PEC Standard Form of Contract for Engineering
Services (Time Based)
• PEC Standard Form of Contract for Engineering
Services (Lump Sump Fee)
For Consultancy Contracts fee less than Rupees
two (2.0) Million.
• PEC Standard Form of Contract for Engineering
Consultancy Services for Small Works"
 PPRA 2010
REGULATION
FOR
CONSULTANC
Y SERVICES
Step-2 NOTICE/INVITATION
FOR
PREQUALIFICATION/
BIDS/NIT/EOI
 PROCUREMENT ADVERTISEMENT
PPRule-12 Methods of advertisement

• PPRA Rule 12(1)

• Procurements five hundred thousand rupees
• up to the limit of three million rupees
PPRA
Websi
te
• PPRA Rule 12(2)
• over three million rupees should be advertised on
the Authority’s website
• And shall principally appear in at least two national
News dailies (1 English, 1 Urdu)
paper
 BID SECURITY
• PPRA Rule No. 25
The procuring agency may require the
bidders to furnish a bid security not
exceeding five percent of the estimated
value of procurement

– In percentage or lumpsum amount???

 Invitation for Bids
• PPRA Rule No. 26
Bid Validity (Explanation issued on
25.01.2021)
Extension shall be for not more than the
period equal to the period of the
original bid validity (only once)
 Step-3
ISSUANCE OF PQ/
BIDDING/EOI/RFP
DOCUMENTS
 Pre-Bid Meeting
Minutes will be
Submit questions,
transmitted to all bidders
in writing seven (7)
days before the
pre-bid meeting. Any modification
of the Bidding
Documents
shall be made
by the issue of
an Addendum

Pre-bid meeting to clarify Absence at the pre-bid

issues and to answer any meeting will not be a cause
questions on matters related for disqualification of a
to the Bidding Documents. bidder.
 Step-4
BIDS/ PROPOSALS
OPENING &
EVALUATION
 OPENING OF BIDS

PPRA RULE NO. 28

• (1) On receiving date
• (2) At least thirty minutes after the deadline for
submission of bids.

• (3) To be opened publicly in the presence of the bidders.

 REDRESSAL OF GRIEVANCES BY THE
PROCURING AGENCY
PPRA Rule No. 48(Amended June 2021)

• Eligibility parameters, evaluation criteria or any other terms

and conditions

– Before proposal submission deadline.

 CLARIFICATION OF BIDS
PPRA RULE NO. 31

No alteration after the bids opening.

Only clarifications to the bid that do not change the

substance of the bid.
 Annex-II
Table-5
RESULTS OF PRELIMINARY EXAMINATION

Bidder Verification Eligibility Bid Completeness Substantial Acceptance

(a) (b) (c) Security of Bid Responsivenes for
(d) (e) s Detailed
(f) Examination
(g)

etc.

Note: Additional columns may be needed, such as for responsiveness to technical

conditions.
 BID EVALUATION
Detailed Bid Evaluation:
• Correction for Prices:
– Read-out total bid prices excluding provisional
sums and discounts
– Corrected total bid price (discount + arithmetic
corrections)
– Corrected price converted to single currency
– Evaluated Bid Price after Price Adjustment
 BID EVALUATION
• Price adjustments (Loading):
– For evaluation purpose only

– Only against stated provisions

– Missing items – competitor’s average price

Price adjustment/ Loading
Completeness in scope of work (Omitted item price shall be deemed
covered by other prices in schedule of prices)

Sr. Firm A Firm B Firm C

Scope
No. (PKR) (PKR) (PKR)

1 UPS 200,000 250,000 300,000

2 Battery 50,000 70,000 80,000

Additional Item
3 100,000 100,000
warranty Deleted
380,000
Total Bid price (deemed
350,000 420,000
inclusive in
other item)
Price adjustment/ Loading
Price adjustment for Technical Compliance (average price quoted by
other bidders)

Sr. Scope Firm A Firm B Firm C

No. (PKR) (PKR) (PKR)

1 UPS 200,000 250,000 220,000

2 Battery 50,000 70,000 80,000

3 Additional 100,000 100,000 -

warranty (adjustment
of average
price
100,000)
Corrected Bid price for 350,000 420,000 400,000
evaluation
 DETAILED EVALUATION
Financial

59
 PPRA RULE 38-B
SINGLE BID (goods, works & services)

Shall be considered if:

• (1) if meets evaluation criteria
• (2) conforms to technical specifications
• (3) reasonability of rates
• (4) ensure principles of procurement
 REDRESSAL OF GRIEVANCES BY THE
PROCURING AGENCY
PPRA Rule No. 48(Amended June 2021)

• After submission of bid:

– Within 07 days of announcement of Technical Evaluation

Report (TER).

– 05 days after the issuance of Final Evaluation Report (FER).

 REDRESSAL OF GRIEVANCES BY THE
PROCURING AGENCY
PPRA Rule No. 48(Amended June 2021)
• Suspension of procurement proceeding - Complain on
TER.

• Complain after FER, no objection on TER can be raised.

• GRC will finalize within 10 days of complain receipt.

• Non-satisfaction before PPRA within 30 days of communication

of decision by paying fee. PPRA decision shall be final.
 Step-5
ACCEPTANCE
OF
BIDS
 PPRA Rule No. 38 ACCEPTANCE
OF BIDS
 Letter of Acceptance to be issued to the lowest
evaluated bidder most advantageous Bidder prior to
expiration of Bid validity period
 Upon receipt of Performance Security @ % mentioned
in the Bidding document, employer will notify others
and return their bid securities
 Failure to furnish Performance Security within 28 days
of LOA may go to 2nd lowest evaluated bidder most
advantageous bidder and
With or without forfeiture of bid
security?????
PERFORMANCE GUARANTEE
PPRA Rule No. 39:
• Shall not exceed 10% of the contact.
 THE BID SECURITY MAY BE
FORFEITED
If the bidder If the Successful Successful bidder
withdraws his bidder bidder fails to fails to sign the
bid during bid does not furnish the Contract
validity accept the required Agreement.
correction Performance
of his Bid guarantee
Price
BLACKLISTING AND DEBARMENT
PPRA Rule No. 19 (amended in 2021)
For procurement & disposal proceedings:
Corrupt & fraudulent practices - For not more than 10 years
in all procurements for participation.
• If bidder fails to perform contractual obligations during execution
of contract. Initiate the blacklisting after exhausting the forum of
arbitration– For not more than 03 years participation in
respective category.
• If bidder fails to abide by Bid security declaration – For not more
than 06 months participation in respective category.
BLACKLISTING AND DEBARMENT
PPRA Rule No. 19
• Communicate to PPRA and bidder.

• Publicized by the Authority.

• Bidder’s appeal to PPRA within 30 days of communication of such

blacklisting by paying fee.

• PPRA decision within 90 days.

• PPRA decision shall be final.

CALCULATION FOR FIXATION OF LIQUIDATED
DAMAGES (LD) AND BONUS FOR EARLY
COMPLETION
Consider Engineer Estimate – PKR 2,000,000,000/-
Duration of completion – 900 days

10% of Engr’s estimate – PKR 200,000,000/-

1/4th of duration – 225 days

10% of Engr’s estimate = 200,000,000/- = PKR 888,889/- per day of LD

1/4th of duration 225

Percentage calculation = 888,889/- × 100 = 0.044% per day

2,000,000,000/-

Per day LD PKR 888,889/- will be recovered in 225 days

 IMPOSITION OF LD IN CASE OF
DELAY IN DELIVERY/ SUPPLY

LOT # 1

Due date for Delivery of equipment under Lot # 1 October 21, 2010

Delivery Completed November 24, 2010

Delay in delivery (Weeks) 5

Contract Price (Rs.) 2,802,335

LDs @ 2% per month (Rs.) 56,047

LDs @ 0.5% per Week (Rs.) 14,012

Total LDs upto November 24, 2010 (5 Weeks) (Rs.) 70,058

Implementation of
Project
CONTRACT
MANAGEMENT
thanks