Introduction and ppra ord & Rules

INTRODUCTION TO LEGALINTRODUCTION TO LEGAL
FRAMEWORK OF PUBLICFRAMEWORK OF PUBLIC
PROCUREMENT IN PAKISTANPROCUREMENT IN PAKISTAN
(PAST & PRESENT)(PAST & PRESENT)

 IntroductionIntroduction
 Introduction; Need for Procurement ReformsIntroduction; Need for Procurement Reforms
 Findings of W.B Country ProcurementFindings of W.B Country Procurement
Assessment Report 2000Assessment Report 2000
 Word Bank RecommendationsWord Bank Recommendations
 Public Procurement Regime in PakistanPublic Procurement Regime in Pakistan
 Overview of Procurement Cycle .Overview of Procurement Cycle .
33
Sequence

IntroductionIntroduction
 Public Procurement Regulatory AuthorityPublic Procurement Regulatory Authority
(PPRA) is an autonomous body endowed(PPRA) is an autonomous body endowed
with the responsibility of Framing rules,with the responsibility of Framing rules,
prescribing regulations and proceduresprescribing regulations and procedures
for public procurements by Federalfor public procurements by Federal
Government owned public sectorGovernment owned public sector
organizationsorganizations

Introduction; Need for ProcurementIntroduction; Need for Procurement
ReformsReforms
General Financial Rules (issued 1951/2ndGeneral Financial Rules (issued 1951/2nd
edition 1979) (edition 1979) (Stores etc.Stores etc.))
Purchase Manual of Deptt. of Supplies andPurchase Manual of Deptt. of Supplies and
Disposals, under MOIP(Disposals, under MOIP(centralizedcentralized))
Delegation of Powers to MinistriesDelegation of Powers to Ministries
((OverlappingOverlapping))
Autonomous Bodies had their own RulesAutonomous Bodies had their own Rules
Various Circulars of Ministry of FinanceVarious Circulars of Ministry of Finance

Reforms in PakistanReforms in Pakistan
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Reviewed
Deficiencies

Findings of W.B Country ProcurementFindings of W.B Country Procurement
Assessment Report 2000Assessment Report 2000
1.1. Pakistan’s procurement practices arePakistan’s procurement practices are
governed by a set of outdated rules andgoverned by a set of outdated rules and
regulationsregulations
2.2. Public procurement suffered fromPublic procurement suffered from
inefficiency, and poor management.inefficiency, and poor management.
3.3. Inadequately trained and poorly paid publicInadequately trained and poorly paid public
sector procurement professionalssector procurement professionals
4.4. Complicated and non-transparentComplicated and non-transparent
procurementprocurement procedures discouraged soundprocedures discouraged sound
planning, thorough evaluationplanning, thorough evaluation

Word Bank RecommendationsWord Bank Recommendations
1.1. Enacting a modern, transparent publicEnacting a modern, transparent public
procurement law based on UNCITRAL;procurement law based on UNCITRAL;
Model Law for Procurement;Model Law for Procurement;
2.2. Creating a small, professionally staffed,Creating a small, professionally staffed,
independent regulatory agencyindependent regulatory agency
3.3. The regulatory body to be mainly confinedThe regulatory body to be mainly confined
to policy, documentation, development ofto policy, documentation, development of
rules, etc.rules, etc.
4.4. Not to involve in line clearance functions forNot to involve in line clearance functions for
award of contractsaward of contracts

Functions of PPRAFunctions of PPRA
Role of PPRA is mainly advisory and facilitative, i.e.,Role of PPRA is mainly advisory and facilitative, i.e.,
To improve governance, transparency, accountability andTo improve governance, transparency, accountability and
quality of public procurement.quality of public procurement.
To supervise the application & implementation of relevantTo supervise the application & implementation of relevant
laws, rules, policies and procedures.laws, rules, policies and procedures.
To recommend revision/formulation of laws, rules andTo recommend revision/formulation of laws, rules and
policies related to public procurement.policies related to public procurement.
To formulate regulations on public procurement.To formulate regulations on public procurement.
To monitor performance of procuring agencies forTo monitor performance of procuring agencies for
improvements in their institutional set up.improvements in their institutional set up.

Members of PPRA BoardMembers of PPRA Board
1.1. Secretary, Finance DivisionSecretary, Finance Division (Chairperson)(Chairperson)
2.2. Secretary, Ministry of Industries andSecretary, Ministry of Industries and
ProductionProduction
3.3. Secretary, Defence Production DivisionSecretary, Defence Production Division
4.4. Secretary, Ministry of Water and PowerSecretary, Ministry of Water and Power
5.5. Secretary, Ministry of Housing and WorksSecretary, Ministry of Housing and Works
6.6. Secretary, Ministry of CommunicationsSecretary, Ministry of Communications
7.7. Member from private sectorMember from private sector
8.8. Member from private sectorMember from private sector vacant sincevacant since 20122012
9.9. Member from private sectorMember from private sector
10.10. Managing Director, PPRAManaging Director, PPRA
(member/secretary)(member/secretary)

Administrative SetupAdministrative Setup
 PPRA is a lean organization working withPPRA is a lean organization working with
09 officers and 40 supporting staff.09 officers and 40 supporting staff.
 Existing staff strength is 49 against theExisting staff strength is 49 against the
required strength of 163.required strength of 163.
 Among existing 49 staff members, 5Among existing 49 staff members, 5
officers and 5 officials are working onofficers and 5 officials are working on
deputation basis.deputation basis.

AchievementsAchievements Hosted the 2Hosted the 2ndnd
South Asia Conference on Public Procurement in March 2014,South Asia Conference on Public Procurement in March 2014,
inaugurated by the President of Pakistan.inaugurated by the President of Pakistan.
 Chair of the South Asia Conference transferred to Pakistan for 2 years.Chair of the South Asia Conference transferred to Pakistan for 2 years.
 South Asia Public Procurement Network (SAPPN) website developed.South Asia Public Procurement Network (SAPPN) website developed.
 Regular meetings through Global Distance Learning Network (GDLN) withRegular meetings through Global Distance Learning Network (GDLN) with
all the South Asian countries for knowledge sharing.all the South Asian countries for knowledge sharing.
 Advisory Group on Public Procurement established to harmonize legalAdvisory Group on Public Procurement established to harmonize legal
framework of federal & provincial PPRAs.framework of federal & provincial PPRAs.
 National Procurement Strategy 2013-16 finalized .National Procurement Strategy 2013-16 finalized .
 E-Procurement Strategy finalized .E-Procurement Strategy finalized .
 Training Strategy for capacity building of procuring agencies finalized.Training Strategy for capacity building of procuring agencies finalized.
 PPRA Accounting Procedure (Regulations) 2014.PPRA Accounting Procedure (Regulations) 2014.
 Draft amendments in Public Procurement Rules, 2004 finalized.Draft amendments in Public Procurement Rules, 2004 finalized.
 Since inceptionSince inception 2,27,9912,27,991 tenders uploaded on PPRA website;tenders uploaded on PPRA website; 75,16375,163
 violations of PP Rules were indicated.violations of PP Rules were indicated.
 Since inception 5141 officials of public & private sector have been trained inSince inception 5141 officials of public & private sector have been trained in
Procurement Rules since 2006.Procurement Rules since 2006.

Legal Frame workLegal Frame work
 Public Procurement RegulatoryPublic Procurement Regulatory
Authority(PPRA) was established on 15Authority(PPRA) was established on 15thth
May,May,
2002.2002.
 PPRA Ordinance, 2002PPRA Ordinance, 2002
 Public Procurement Rules, 2004Public Procurement Rules, 2004
 Six Public Procurement Regulations areSix Public Procurement Regulations are
notified.notified.
 Based onBased on UNCITRALUNCITRAL - a model Procurement- a model Procurement
LawLaw
 Compliance with World Bank and ADBCompliance with World Bank and ADB
Procurement GuidelinesProcurement Guidelines 1313

Public Procurement RegulationsPublic Procurement Regulations
Regulations making powers are derived from Section 27 of the Ordinance.Regulations making powers are derived from Section 27 of the Ordinance.
FollowingFollowing Six RegulationsSix Regulations are issued so far:are issued so far:
1.1.PPRA Regulations, 2008PPRA Regulations, 2008 (BD Works+Record)(BD Works+Record)
2.2.PPRA Regulation, 2009PPRA Regulation, 2009 (posting of Contract Awards; Rs. 50 million)(posting of Contract Awards; Rs. 50 million)
3.3.Consultancy Services Regulations, 2010Consultancy Services Regulations, 2010
4.4.PPRA Regulation, 2011PPRA Regulation, 2011 (Rule 5)(Rule 5)
5.5.Eligible BiddersEligible Bidders (Tax Compliance)(Tax Compliance) Regulations, 2015Regulations, 2015
6.6.Public Procurement (Public Procurement (Specimens for advertisementSpecimens for advertisement) Regulations, 2015) Regulations, 2015

Public Procurement Regime inPublic Procurement Regime in
PakistanPakistan
 Punjab PPRA (Established in 2008)Punjab PPRA (Established in 2008)
 Sindh PPRA (Established in 2010)Sindh PPRA (Established in 2010)
 Baluchistan PPRA (Established in 2012)Baluchistan PPRA (Established in 2012)
 KP PPRA (Established in 2014)KP PPRA (Established in 2014)
 AJK adopted Federal PPRA Rules in 2017,AJK adopted Federal PPRA Rules in 2017,
GB follow Federal PPRA & FATA followsGB follow Federal PPRA & FATA follows
Governor Directives.Governor Directives.
1515

Public Procurement and somePublic Procurement and some
basic conceptsbasic concepts
Whether following subjects are Procurement?Whether following subjects are Procurement?
 RecruitmentRecruitment
 AuctionAuction
 Lease of land/buildingLease of land/building
 Purchase of land/buildingPurchase of land/building
 Privatization of Units/BanksPrivatization of Units/Banks
 Basis of transparency & open competition should beBasis of transparency & open competition should be
followed.followed.
 Financial Control and Budgeting, 2006 issued byFinancial Control and Budgeting, 2006 issued by
Finance Division shall be consultedFinance Division shall be consulted
1616

INTRODUCTION TO PPRAINTRODUCTION TO PPRA
ORDINANCE, 2002ORDINANCE, 2002

INTRODUCTION TO PPRA ORDINANCE, 2002INTRODUCTION TO PPRA ORDINANCE, 2002
 Public Procurement RegulatoryPublic Procurement Regulatory
Authority(PPRA) was established on 15Authority(PPRA) was established on 15thth
May, 2002 under PPRA Ordinance, 2002May, 2002 under PPRA Ordinance, 2002
 Regulator of Public ProcurementRegulator of Public Procurement
 Role of NAB, PEC, TIP AND AGPRRole of NAB, PEC, TIP AND AGPR

Basic DefinitionsBasic Definitions
Public Procurement:Public Procurement:
Means acquisition of goods, services or
construction of any works financed wholly or
partly out of the Public Fund, unless excluded
otherwise by the Federal Government;

Goods:Goods:
Means articles and objects of every kind and
description including raw materials, products,
equipment, machinery, spares and commodities in
any form and includes services incidental to
installation, transport, maintenance and similar
obligations related to the supply of goods if the value
of these services does not exceed the value of such
goods;

WorksWorks
Means any construction work consisting of erection, assembly,
repair, renovation or demolition of a building or structure or
part thereof, such as site preparation, excavation, installation
of equipment or materials and decoration, finishing and
includes incidental services such as drilling, mapping, satellite
photography, seismic investigations and similar activities, if
the value of those services does not exceed that of the works
themselves.

Services:Services:
Means any object of Procurement other than
goods or works;

Public Fund:Public Fund:
means the Federal Consolidated Fund and the
Public Account of the Federation and includes
funds of enterprises which are owned or
controlled by the Federal Government;

Procuring Agency:Procuring Agency:
 Any Ministry, Division, Department or any
Office of the Federal Government;
 Any authority, corporation, body or
organization established by or under Federal
law or which is owned or controlled by the
Federal Government;

Mis-Procurement:Mis-Procurement:
Means public procurement in contravention of
any provision of this Ordinance, regulations,
orders or instructions made there under or any
other law in respect of, or relating to, public
procurement.

21. Power to exempt
The Authority may, recommended to the Federal
Government that the procurement in the national
interest be exempted from the operation of this
Ordinance or any rule or regulation and Federal
Government on such recommendations shall exempt
it from the operation of the laws and rules and
regulations made there under.

Procurement Cycle
Procurement Planning
Pre-Qualification Evaluation
Invitation of Bids
Bidding
Evaluation of Bids
Decision of Contract Award
Signing of Contract

Public Procurement Cycle ChecklistPublic Procurement Cycle Checklist
 1. Identifying the need – is the purchase necessary?1. Identifying the need – is the purchase necessary?
 2. Writing the specifications2. Writing the specifications
 3. Estimating cost3. Estimating cost
 4. Securing approvals and funding4. Securing approvals and funding
 5. Determining the best procurement strategy5. Determining the best procurement strategy
 6. Deciding on the tendering procedure that should be followed6. Deciding on the tendering procedure that should be followed
 7. Preparing Request for Tender (RFT)7. Preparing Request for Tender (RFT)
 8. Allowing sufficient time for submission of tenders8. Allowing sufficient time for submission of tenders
 9. Issuing tender documents, supporting documents and9. Issuing tender documents, supporting documents and
clarifications without delayclarifications without delay
 10. Receipting and opening tenders10. Receipting and opening tenders
 11. Evaluation of tenders11. Evaluation of tenders
 12. Awarding the contract12. Awarding the contract
 13. Managing the contract13. Managing the contract

Public Procurement Rules 2004
Rule.1
Short title and commencement
 Section 26, Public Procurement RegulatorySection 26, Public Procurement Regulatory
Authority Ordinance, 2002- power to makeAuthority Ordinance, 2002- power to make
rules.rules.
 Public Procurement Rules, 2004Public Procurement Rules, 2004
S.R.O.432(1)/2004.Finance Division ,8S.R.O.432(1)/2004.Finance Division ,8thth
June,2004June,2004

General Provisions
Rule 2.
Definitions
Section, 2, PPRASection, 2, PPRA
Ordinance, 2002Ordinance, 2002
 PublicPublic
ProcurementProcurement
 Mis-procurementMis-procurement
 Procuring AgencyProcuring Agency
 Public FundPublic Fund
 GoodsGoods
 ServicesServices
 WorksWorks
Rule,2 (1) & (2), PP Rules, 2004Rule,2 (1) & (2), PP Rules, 2004

Bid/ BidderBid/ Bidder
 Competitive biddingCompetitive bidding
 ContractContract
 Corrupt and FraudulentCorrupt and Fraudulent
PracticesPractices
 EmergencyEmergency
 Lowest Evaluated BidLowest Evaluated Bid
 Repeat OrderRepeat Order
 SupplierSupplier
 Value for MoneyValue for Money

Rule. 2
GENERAL PROVISIONS
2. Definitions.-
“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;
“lowest evaluated bid” means,-
a bid most closely conforming to evaluation criteria and other conditions specified
in the bidding document; andand having lowest evaluated costhaving lowest evaluated cost;;
“value for money” means best returns for each rupee spent in terms of quality,
timeliness, reliability, after sales service, up-grade ability, price, source, and the
combination of whole-life cost and quality to meet the procuring agency’s
requirements.

Rule. 3
Scope and Applicability
Public Procurement Rules, 2004
apply to all procurements made by
all procuring agencies of the
Federal Government whether
within or outside Pakistan.
*Procurement of
Goods.
Services.
Works.
*PPRA Ordinance 2002

Rule. 4
Principles of Procurement
 procurements are conducted in aprocurements are conducted in a fairfair andand
transparenttransparent mannermanner
 the object of procurement bringsthe object of procurement brings value for moneyvalue for money
to the agencyto the agency
 the procurement process isthe procurement process is efficientefficient andand
economicaleconomical..

Rule. 5
International and Inter-governmental
Commitments
 Whenever these rules are in conflict with anWhenever these rules are in conflict with an
obligation or commitment of the Federalobligation or commitment of the Federal
Government arising out ofGovernment arising out of
 an international treaty oran international treaty or
 an agreement with a State or States, oran agreement with a State or States, or
 any international financial institutionany international financial institution
 the provisions of such international treaty orthe provisions of such international treaty or
agreementagreement to prevail to the extent of suchto prevail to the extent of such
conflict.conflict.
Prior Approval of ECCPrior Approval of ECC(PP Regulations, 2011)(PP Regulations, 2011)

Rule. 6
Language
 All communication and documentation inAll communication and documentation in UrduUrdu
oror EnglishEnglish oror BothBoth..
 Outside Pakistan and local procurement inOutside Pakistan and local procurement in
local language.local language.

Rule. 7
Integrity PactIntegrity Pact
Integrity Pact to be made a part of allIntegrity Pact to be made a part of all
contracts exceedingcontracts exceeding Rs. 10 MillionRs. 10 Million inin
value.value.

Rule 8Rule 8
Procurement PlanningProcurement Planning
Procurement Planning forProcurement Planning for realisticallyrealistically
determining thedetermining the requirements of the procuringrequirements of the procuring
agencyagency ,within its,within its available resourcesavailable resources,, deliverydelivery
timetime oror completion datecompletion date andand benefitsbenefits that arethat are
likely to accrue to the procuring agency inlikely to accrue to the procuring agency in
future.future.

Rule 9
Limitation on splitting or regrouping
A procuring agency to announce in an
appropriate manner all proposed
procurements for each financial year,
 To proceed accordingly without any
splitting or regrouping of procurement so
planned; and
 To advertise in advance on the Authority’s
website and procuring agency’s (if any) own
website.

Rule 10
Specifications
 to beto be genericgeneric without references to brand names,without references to brand names,
model numbers, catalogue numbers or similarmodel numbers, catalogue numbers or similar
classifications.classifications.
 if essential to complete an otherwise incompleteif essential to complete an otherwise incomplete
specification, such use or reference to be qualifiedspecification, such use or reference to be qualified
with the words “with the words “or equivalentor equivalent” .” .

Rule 11
Approval Mechanism
All procuring agencies to provideAll procuring agencies to provide clearclear
authorizationauthorization andand delegation of powersdelegation of powers forfor
different categories of procurement and todifferent categories of procurement and to
only initiate procurement onceonly initiate procurement once approval ofapproval of
the competent authoritiesthe competent authorities obtained.obtained.

Rule 12
Advertisement Methods
 Rs.100,000 – Rs. 2 MillionRs.100,000 – Rs. 2 Million :to be:to be
advertised on theadvertised on the Authority’s websiteAuthority’s website
 over Rs.2 Millionover Rs.2 Million : to be advertised on the: to be advertised on the
PPRA’s website andPPRA’s website and newspapers, at least twonewspapers, at least two
national dailies,national dailies, having wide circulation.having wide circulation.

Rule 13
Response Time
 National Competitive BiddingNational Competitive Bidding --not less than--not less than 15 days15 days
 International Competitive Bidding -- not less thanInternational Competitive Bidding -- not less than 30 days30 days ..
 The response time to be calculatedThe response time to be calculated from the date of firstfrom the date of first
publicationpublication of the advertisement in a newspaper or postingof the advertisement in a newspaper or posting
on the website.on the website.
 Where publication of such advertisements or notices hasWhere publication of such advertisements or notices has
occurredoccurred in both electronic and print mediain both electronic and print media, the response, the response
time to be calculated from the day of its first publication intime to be calculated from the day of its first publication in
the newspapers.the newspapers.
 Proviso; in emergencyProviso; in emergency

Rule 14
Exceptions
Exceptions with prior approval ofExceptions with prior approval of
Authority;Authority;
 If the procurement relates toIf the procurement relates to national securitynational security
and its publication could jeopardize nationaland its publication could jeopardize national
security objectives; andsecurity objectives; and
 If the publication of procurement in any manner,If the publication of procurement in any manner,
relates to disclosure of information, which isrelates to disclosure of information, which is
proprietaryproprietary in nature or falls within thein nature or falls within the
definition ofdefinition of intellectual propertyintellectual property which iswhich is
available from a single source.available from a single source.

Rule 15Rule 15
Pre-qualification ofPre-qualification of
Suppliers/ContractorsSuppliers/Contractors
 SuitableSuitable in case ofin case of Services, Civil Works, TurnkeyServices, Civil Works, Turnkey
Projects,Projects, Expensive Technically Complex Equipment.Expensive Technically Complex Equipment.
 Ensure that technically and financially capable firmsEnsure that technically and financially capable firms
havinghaving adequate managerial competencyadequate managerial competency are invited.are invited.

Rule 15Rule 15
Factors for Consideration forFactors for Consideration for
Pre-qualification ofPre-qualification of
Suppliers/ContractorsSuppliers/Contractors
 (a)(a) relevant experience and past performance;relevant experience and past performance;
 (b)(b) capabilities with respect to personnel, equipment, andcapabilities with respect to personnel, equipment, and
plant;plant;
 (c)(c) financial position;financial position;
 (d)(d) appropriate managerial capability; andappropriate managerial capability; and
 (e)(e) any other factor that a procuring agency may deemany other factor that a procuring agency may deem
relevant, not inconsistent with these rules.relevant, not inconsistent with these rules.

Rule 16Rule 16
Pre-qualification ProcessPre-qualification Process
 all information is requiredall information is required to be announcedto be announced through thethrough the
pre-qualification documents for preparation andpre-qualification documents for preparation and
submission of applicationssubmission of applications
 PricePrice of Pre-qualification documentsof Pre-qualification documents not to exceed the costnot to exceed the cost
of printingof printing and providing the documentsand providing the documents

Rule – 17Rule – 17
QualificationQualification
 A procuring agency, at any stage of the procurementA procuring agency, at any stage of the procurement
proceedings, may require the suppliers or contractors toproceedings, may require the suppliers or contractors to
provide information concerning their professional,provide information concerning their professional,
technical, financial, legal or managerial competence whethertechnical, financial, legal or managerial competence whether
already pre-qualified or not:already pre-qualified or not:

Reasons to be recorded in writing by the P.A.Reasons to be recorded in writing by the P.A.

DisqualificationDisqualification
The procuring agency shall disqualify aThe procuring agency shall disqualify a
supplier or contractor if it finds, at any time,supplier or contractor if it finds, at any time,
that the information submitted by himthat the information submitted by him
concerning his qualification as supplier orconcerning his qualification as supplier or
contractor was false and materiallycontractor was false and materially
inaccurate or incomplete.inaccurate or incomplete.

Rule 19Rule 19
BlacklistingBlacklisting
 Specify a mechanism and manner toSpecify a mechanism and manner to
permanently or temporarily bar.permanently or temporarily bar.
 Such barring action shall be dulySuch barring action shall be duly
publicized and communicated to thepublicized and communicated to the
Authority:Authority:
 Adequate opportunity of being heard.Adequate opportunity of being heard.

Rule 20Rule 20
Principal methodPrincipal method
Open competitive biddingOpen competitive bidding is the principalis the principal
method of procurement for all procurement ofmethod of procurement for all procurement of
goods, services and works.goods, services and works.

Rule 21Rule 21
Open Competitive BiddingOpen Competitive Bidding
The procuring agencies shall engage in openThe procuring agencies shall engage in open
competitive bidding if the cost of the objectcompetitive bidding if the cost of the object
to be procured is more thanto be procured is more than Rs.100,000.Rs.100,000.

Rule 22Rule 22
Submission of Bids.-Submission of Bids.-
The bids shall be submitted in a sealedThe bids shall be submitted in a sealed
package or packages in such manner thatpackage or packages in such manner that
the contents are fully enclosed and cannotthe contents are fully enclosed and cannot
be known until duly opened.be known until duly opened.
(2) A procuring agency shall specify the(2) A procuring agency shall specify the
manner and method of submission andmanner and method of submission and
receipt of bids in an unambiguous and clearreceipt of bids in an unambiguous and clear
manner in the bidding documents.manner in the bidding documents.

Rule 23Rule 23
Bidding DocumentsBidding Documents
Procuring agencies shall formulateProcuring agencies shall formulate
precise and unambiguous biddingprecise and unambiguous bidding
documents that shall be made available todocuments that shall be made available to
the bidders immediately after thethe bidders immediately after the
publication of the invitation to bid.publication of the invitation to bid.
(2)(2) For competitive bidding, whetherFor competitive bidding, whether
open or limited, the bidding documents shallopen or limited, the bidding documents shall
include the following namely.-include the following namely.-

(a)(a) invitation to bid;invitation to bid;
(b)(b) instructions to bidders;instructions to bidders;
(c)(c) form of bid;form of bid;
(d)(d) form of contract;form of contract;
(e)(e) general or special conditions of contract;general or special conditions of contract;
(f)(f) specifications and drawings or performancespecifications and drawings or performance
criteria (where applicable);criteria (where applicable);
(g)(g) list of goods or bill of quantities (wherelist of goods or bill of quantities (where
applicable);applicable);
(h)(h) delivery time or completion schedule;delivery time or completion schedule;

(i)(i) qualification criteria (where applicable);qualification criteria (where applicable);
(j)(j) bid evaluation criteria;bid evaluation criteria;
(k)(k) format of all securities required (where applicable);format of all securities required (where applicable);
(l)(l) details of standards (if any) that are to be used indetails of standards (if any) that are to be used in
assessing the quality of goods, works or servicesassessing the quality of goods, works or services
specified; andspecified; and
(m)(m) any other detail not inconsistent with these rulesany other detail not inconsistent with these rules
that the procuring agency may deem necessary.that the procuring agency may deem necessary.

Rule 24Rule 24
Reservations and PreferenceReservations and Preference
 Allow participation to all bidders without regard toAllow participation to all bidders without regard to
nationalitynationality
 Exception only in accordance with the policy of theException only in accordance with the policy of the
Federal GovernmentFederal Government
 Price preference to domestic or national bidders as perPrice preference to domestic or national bidders as per
policy of the Federal Governmentpolicy of the Federal Government
 Magnitude to be mentioned in bid evaluation criteriaMagnitude to be mentioned in bid evaluation criteria

Rule 25Rule 25
Bid SecurityBid Security
The procuring agency may require theThe procuring agency may require the
bidders to furnish a bid security notbidders to furnish a bid security not
exceedingexceeding five per centfive per cent of the bid price.of the bid price.

Rule 26Rule 26
Bid ValidityBid Validity
 Bid validity period must be specifiedBid validity period must be specified
 Bids shall be valid for the time period specifiedBids shall be valid for the time period specified
in the bidding documentsin the bidding documents
 P.A shall process the bid within the bid validityP.A shall process the bid within the bid validity
periodperiod
 Extensions under exceptional circumstances, byExtensions under exceptional circumstances, by
recording the reasonsrecording the reasons
 All the applicants shall be asked to extend theirAll the applicants shall be asked to extend their
bid validity periodbid validity period

Rule 27Rule 27
Extension of Time for Submission ofExtension of Time for Submission of
BidsBids
 Reasons to be recordedReasons to be recorded
 Equal opportunity basisEqual opportunity basis
 Manner similar to original advertisementManner similar to original advertisement

Rule 28Rule 28
Opening of bidsOpening of bids
i.i. The date for opening of bids and the last date forThe date for opening of bids and the last date for
the submission of bids shall be the same.the submission of bids shall be the same.
ii.ii. The bids shall be opened at leastThe bids shall be opened at least thirty minutesthirty minutes
after the deadline for submission of bids.after the deadline for submission of bids.

iii.iii. All bids shall be opened publicly in the presence ofAll bids shall be opened publicly in the presence of
the bidders or their representatives who maythe bidders or their representatives who may
choose to be present.choose to be present.
iv.iv. The procuring agency shall read aloud the unitThe procuring agency shall read aloud the unit
price as well as the bid amount and shall record theprice as well as the bid amount and shall record the
minutes of the bid opening.minutes of the bid opening.
v.v. All bidders in attendance shall sign an attendanceAll bidders in attendance shall sign an attendance
sheet.sheet.
vi.vi. All bids submitted after the time prescribed shallAll bids submitted after the time prescribed shall
be rejected and returned without beingbe rejected and returned without being opened.opened.

Rule 29Rule 29
Evaluation criteriaEvaluation criteria
i.i. Procuring agencies shall formulate an appropriateProcuring agencies shall formulate an appropriate
evaluation criterion listing all the relevant informationevaluation criterion listing all the relevant information
against which a bid is to be evaluated.against which a bid is to be evaluated.
ii.ii. Such evaluation criteria shall form an integral part of theSuch evaluation criteria shall form an integral part of the
bidding documents.bidding documents.
iii.iii. Failure to provide for an unambiguous evaluationFailure to provide for an unambiguous evaluation
criteria in the bidding documents shall amount to mis-criteria in the bidding documents shall amount to mis-
procurement.procurement.

Rule 30Rule 30
Evaluation of BidsEvaluation of Bids
i.i. All bids shall be evaluated in accordance with theAll bids shall be evaluated in accordance with the
evaluation criteria and other terms and conditions setevaluation criteria and other terms and conditions set
forth in the prescribed bidding documents.forth in the prescribed bidding documents.
ii.ii. Save as provided for in clause (iv) of clause (c) of rule 36Save as provided for in clause (iv) of clause (c) of rule 36
no evaluation criteria shall be used for evaluation of bidsno evaluation criteria shall be used for evaluation of bids
that had not been specified in the bidding documents.that had not been specified in the bidding documents.
iii.iii. For the purposes of comparison of bids quoted inFor the purposes of comparison of bids quoted in
different currencies, the price shall be converted into adifferent currencies, the price shall be converted into a
single currency specified in the bidding documents.single currency specified in the bidding documents.

iv.iv. The rate of exchange shall be the selling rate,The rate of exchange shall be the selling rate,
prevailing on the date of opening, as notified by theprevailing on the date of opening, as notified by the
State Bank of Pakistan on that day.State Bank of Pakistan on that day.
v.v. A bid once opened in accordance with the prescribedA bid once opened in accordance with the prescribed
procedure shall be subject to only those rules,procedure shall be subject to only those rules,
regulations and policies that are in force at the time ofregulations and policies that are in force at the time of
issue of notice for invitation of bids.issue of notice for invitation of bids.

Rule 31Rule 31
Clarification of bidsClarification of bids
i.i. No bidder shall be allowed to alter or modify his bid afterNo bidder shall be allowed to alter or modify his bid after
the bids have been opened.the bids have been opened.
ii.ii. The procuring agency may seek and accept clarificationsThe procuring agency may seek and accept clarifications
to the bid that do not change the substance of the bid.to the bid that do not change the substance of the bid.
iii.iii. Any request for clarification in the bid, made by theAny request for clarification in the bid, made by the
procuring agency shall invariably be in writing.procuring agency shall invariably be in writing.
iv.iv. The response to such request shall also be in writing.The response to such request shall also be in writing.

Rule 32Rule 32
Discriminatory and DifficultDiscriminatory and Difficult
ConditionsConditions
i.i. No procuring agency shall introduce any condition, whichNo procuring agency shall introduce any condition, which
discriminates between bidders or that is considered to bediscriminates between bidders or that is considered to be
met with difficulty.met with difficulty.
ii.ii. In ascertaining the discriminatory or difficult nature ofIn ascertaining the discriminatory or difficult nature of
any condition reference shall be made to the ordinaryany condition reference shall be made to the ordinary
practices of that trade, manufacturing, constructionpractices of that trade, manufacturing, construction
business or service to which that particular procurementbusiness or service to which that particular procurement
is related.is related.

Rule 33Rule 33
Rejection of bidsRejection of bids
i.i. The procuring agency may reject all bids or proposals atThe procuring agency may reject all bids or proposals at
any time prior to the acceptance of a bid or proposal.any time prior to the acceptance of a bid or proposal.
ii.ii. The procuring agency shall upon request communicateThe procuring agency shall upon request communicate
to any supplier or contractor who submitted a bid orto any supplier or contractor who submitted a bid or
proposal, the grounds for its rejection of all bids orproposal, the grounds for its rejection of all bids or
proposals, but is not required to justify those grounds.proposals, but is not required to justify those grounds.
iii.iii. Notice of the rejection of all bids or proposals shall beNotice of the rejection of all bids or proposals shall be
given promptly to all bidders.given promptly to all bidders.
iv.iv. The procuring agency shall incur no liability.The procuring agency shall incur no liability.

Rule 34Rule 34
Re-biddingRe-bidding
i.i. If the procuring agency has rejected all bids under rule 33If the procuring agency has rejected all bids under rule 33
it may call for a re-bidding.it may call for a re-bidding.
ii.ii. The procuring agency before invitation for re-bidding shallThe procuring agency before invitation for re-bidding shall
assess the reasons for rejection and may reviseassess the reasons for rejection and may revise
specifications, evaluation criteria or any other condition forspecifications, evaluation criteria or any other condition for
bidders as it may deem necessary.bidders as it may deem necessary.

Rule 35Rule 35
Announcement of evaluationAnnouncement of evaluation
ReportsReports
Procuring agencies shall announce the results of bidProcuring agencies shall announce the results of bid
evaluation in the form of a report giving justification forevaluation in the form of a report giving justification for
acceptance or rejection of bids at leastacceptance or rejection of bids at least ten daysten days prior to theprior to the
award of procurement contract.award of procurement contract.

Rule 36Rule 36
Procedures of Open Competitive BiddingProcedures of Open Competitive Bidding
a.a. Single stage – one envelope procedure.Single stage – one envelope procedure.
b.b. Single stage – two envelope procedure.Single stage – two envelope procedure.
c.c. Two stage bidding procedure.Two stage bidding procedure.
d.d. Two stage – two envelope biddingTwo stage – two envelope bidding procedureprocedure..

Rule - 37Rule - 37
ConditionsConditions
i.i. Single stage one envelopeSingle stage one envelope bidding procedure shallbidding procedure shall
ordinarily be the main open competitive biddingordinarily be the main open competitive bidding
procedure used for most of the procurement.procedure used for most of the procurement.
ii.ii. Single stage two envelopeSingle stage two envelope bidding procedure shall bebidding procedure shall be
used where the bids are to be evaluated on technical andused where the bids are to be evaluated on technical and
financial grounds and price is taken into account afterfinancial grounds and price is taken into account after
technical evaluation;technical evaluation;
iii.iii. Two stageTwo stage bidding procedure shall be adopted in largebidding procedure shall be adopted in large
and complex contracts where technically unequaland complex contracts where technically unequal
proposals are likely to be encountered or where theproposals are likely to be encountered or where the
procuring agency is aware of its options in the marketprocuring agency is aware of its options in the market
but, for a given set of performance requirements, therebut, for a given set of performance requirements, there
are two or more equally acceptable technical solutionsare two or more equally acceptable technical solutions
available to the procuring agency; andavailable to the procuring agency; and

iv.iv. two stage two envelopetwo stage two envelope bidding method shall be usedbidding method shall be used
for procurement where alternative technical proposalsfor procurement where alternative technical proposals
are possible, such as certain type of machinery orare possible, such as certain type of machinery or
equipment or manufacturing plant.equipment or manufacturing plant.
****************

Rule 38Rule 38
Acceptance of BidsAcceptance of Bids
 lowest evaluated bid to be acceptedlowest evaluated bid to be accepted
 If not in conflict with any other law, rules,If not in conflict with any other law, rules,
regulations or policy of Government.regulations or policy of Government.
 Within the original or extended period of bidWithin the original or extended period of bid
validityvalidity

Performance guaranteePerformance guarantee
 If required ,to be furnished by theIf required ,to be furnished by the
successful biddersuccessful bidder
 shall not exceed 10% of the contractshall not exceed 10% of the contract
amountamount
 should be clearly expressed in theshould be clearly expressed in the
bidding documents.bidding documents.

Limitation on negotiationsLimitation on negotiations

No negotiations with the bidderNo negotiations with the bidder
having submitted the lowesthaving submitted the lowest
evaluated bid or with any otherevaluated bid or with any other
bidder.bidder.

ConfidentialityConfidentiality
 All information regarding the bidAll information regarding the bid
evaluation shall be kept confidentialevaluation shall be kept confidential
 until the announcement of evaluationuntil the announcement of evaluation
report under Rule - 35report under Rule - 35

Rule – 42.Rule – 42.
Alternate Methods ofAlternate Methods of
ProcurementsProcurements..
(a)(a) Petty PurchasesPetty Purchases
 if below the limit of Rs. 25,000if below the limit of Rs. 25,000
 exempted from the requirement of bidding orexempted from the requirement of bidding or
quotation of Prices.quotation of Prices.
 Should be in conformity with Principles ofShould be in conformity with Principles of
Procurement prescribed under Rule 4Procurement prescribed under Rule 4
 Financial limit of Rs. 25,000 is extendable, ifFinancial limit of Rs. 25,000 is extendable, if
justified.justified.

(b)(b) Request for quotationsRequest for quotations
 Below the financial limit of Rs. 100,000Below the financial limit of Rs. 100,000
 Below Rs. 5oo,000 for Autonomous bodiesBelow Rs. 5oo,000 for Autonomous bodies
(required to be approved by concerned(required to be approved by concerned
Board of Directors)Board of Directors)
 Standard specificationsStandard specifications
 Minimum of 03 quotations requiredMinimum of 03 quotations required
 Purchase from the supplier offering thePurchase from the supplier offering the
lowest pricelowest price
 Financial limit of Rs. 100,000 is extendableFinancial limit of Rs. 100,000 is extendable
if full justification is provided.if full justification is provided.

(C)(C) Direct ContractingDirect Contracting
A PA may engage in direct contracting if theA PA may engage in direct contracting if the
following conditions are met:following conditions are met:
 Acquisition of spare parts or supplementaryAcquisition of spare parts or supplementary
services from the original manufacturer or supplierservices from the original manufacturer or supplier
if not available from alternate sourcesif not available from alternate sources
 Only one manufacturer or supplier existsOnly one manufacturer or supplier exists
(specification of appropriate forum for(specification of appropriate forum for
authorization )authorization )
 Repeat orders not exceeding 15% of the originalRepeat orders not exceeding 15% of the original
procurementprocurement
 Where a change of supplier would oblige theWhere a change of supplier would oblige the
procuring agency to acquire material havingprocuring agency to acquire material having
different technical specifications or characteristicsdifferent technical specifications or characteristics

 In case of an emergency declared by an appropriateIn case of an emergency declared by an appropriate
fora.fora.
 The Prices are fixed by the Government.The Prices are fixed by the Government.
 The Purchase of Motor Vehicle from Local originalThe Purchase of Motor Vehicle from Local original
manufactures or their authorized agents.manufactures or their authorized agents.

(d)(d) Negotiated TenderingNegotiated Tendering
 A procuring agency may engage in negotiatedA procuring agency may engage in negotiated
tendering with one or more suppliers or contractorstendering with one or more suppliers or contractors
with or without prior publication of a procurementwith or without prior publication of a procurement
notification. This procedure shall only be used when:notification. This procedure shall only be used when:
i.i. The supplies involved are manufactured purely for theThe supplies involved are manufactured purely for the
purpose of supporting a specific piece of research or anpurpose of supporting a specific piece of research or an
experiment, a study or a particular development;experiment, a study or a particular development;
ii.ii. For technical or artistic reasons, or for reasons connectedFor technical or artistic reasons, or for reasons connected
with protection of exclusive rights or intellectual properly,with protection of exclusive rights or intellectual properly,
the supplies may be manufactured or delivered only by athe supplies may be manufactured or delivered only by a
particular supplier;particular supplier;

iii.iii. For reasons of extreme urgency brought about by eventsFor reasons of extreme urgency brought about by events
unforeseeable by the procuring agency, the time limits laidunforeseeable by the procuring agency, the time limits laid
down for open and limited bidding methods cannot be met.down for open and limited bidding methods cannot be met.
The circumstances invoked to justify extreme urgency mustThe circumstances invoked to justify extreme urgency must
not be attributable to the procuring agency;not be attributable to the procuring agency;
Provided that any procuring agency desirous ofProvided that any procuring agency desirous of
using negotiated tendering as a method of procurement shallusing negotiated tendering as a method of procurement shall
record its reasons and justifications in writing for resorting torecord its reasons and justifications in writing for resorting to
negotiated tendering and shall place the same on record.negotiated tendering and shall place the same on record.

On Account PaymentsOn Account Payments
 Prompt Payments to suppliers/contractorsPrompt Payments to suppliers/contractors
within the time given in the conditions ofwithin the time given in the conditions of
the contract, which shall not exceedthe contract, which shall not exceed 3030
daysdays

Entry into force of the ContractEntry into force of the Contract
 If formal signing of a written contract is required:-If formal signing of a written contract is required:-
 From the date of signing the contract by all partiesFrom the date of signing the contract by all parties
concerned. Orconcerned. Or
 From the date of fulfillment of certain condition(s) –From the date of fulfillment of certain condition(s) –
Contingent Contracts.Contingent Contracts.
 If no formal signing of contract is required:-If no formal signing of contract is required:-
 From the date of the notice of the acceptance of the bidFrom the date of the notice of the acceptance of the bid
 From the date of the purchase orderFrom the date of the purchase order

Closing of ContractClosing of Contract
 On issuance of overall delivery certificate or takingOn issuance of overall delivery certificate or taking
over certificate required to be issued within 30over certificate required to be issued within 30
days of final taking over of goods/receiving thedays of final taking over of goods/receiving the
deliverables or completion of work.deliverables or completion of work.
 In case of defect liability or maintenance period;In case of defect liability or maintenance period;
• Completion certificate to be issued within 30 days ofCompletion certificate to be issued within 30 days of
expiry of defect liability or maintenance period (exceptexpiry of defect liability or maintenance period (except
for unsettled claims) and payments to be made as perfor unsettled claims) and payments to be made as per
condition of contract but not exceeding 60 days.condition of contract but not exceeding 60 days.


Record of Procuring ProceedingsRecord of Procuring Proceedings
• To be maintained by all P.As for a minimum period ofTo be maintained by all P.As for a minimum period of
05 years05 years
• Detail of record obtaining of record etc. in accordanceDetail of record obtaining of record etc. in accordance
with Regulation 4,5,6 of PP Regulations, 2008.with Regulation 4,5,6 of PP Regulations, 2008.

Public Access and TransparencyPublic Access and Transparency
A document relating to evaluation and awardA document relating to evaluation and award
of contract to be made public;of contract to be made public;
• as soon as the contract is awardedas soon as the contract is awarded
• exceptions – proprietary nature or against theexceptions – proprietary nature or against the PublicPublic
InterestInterest
• Prior approval of PPRA required to withhold thePrior approval of PPRA required to withhold the
information from public disclosureinformation from public disclosure
• Procurement contract over Rs.50 million are requiredProcurement contract over Rs.50 million are required
to be uploaded on PPRA Website on specified formsto be uploaded on PPRA Website on specified forms
(PP Regulations, 2009)(PP Regulations, 2009)

Rule – 48.Rule – 48.
Redressal of Grievances by theRedressal of Grievances by the
Procuring AgencyProcuring Agency
• On receipt of complaint of an aggrieved bidder priorOn receipt of complaint of an aggrieved bidder prior
to the entry into force of the procurement contractto the entry into force of the procurement contract
• PA to Constitute a CommitteePA to Constitute a Committee
• ComplaintsComplaints
• Written complaintWritten complaint within 15 dayswithin 15 days after theafter the
announcement ofannouncement of the bid evaluation reportthe bid evaluation report
• Decision by the Committee within 15 days of theDecision by the Committee within 15 days of the
receipt of thereceipt of the complaintcomplaint
• Appeal can be filed in the relevant court ofAppeal can be filed in the relevant court of
jurisdictionjurisdiction

ArbitrationArbitration
• only after coming into force of the procurementonly after coming into force of the procurement
contractscontracts
• method of arbitration to be provided by themethod of arbitration to be provided by the
procuringprocuring agencyagency

Mis-procurementMis-procurement
 Un-authorized breach of Procurement RulesUn-authorized breach of Procurement Rules

Overriding EffectOverriding Effect
 Shall have effect notwithstandingShall have effect notwithstanding
anything to the contrary containedanything to the contrary contained
inin any other rulesany other rules concerning publicconcerning public
procurementsprocurements

Introduction and ppra ord & Rules

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