study on public procurement systems and capacity in ... -...

February 2013

Study on Public Procurement Systems andCapacity in South Asian Countries

Final Report

Japan International Cooperation AgencyThe Crown Agents for Oversea Governments and

Administrations Limited

4RJR

13-016

February 2013

Study on Public Procurement Systems andCapacity in South Asian Countries

Final Report

Japan International Cooperation AgencyThe Crown Agents for Oversea Governments and

Administrations Limited

iii

Index

1. Study Outline ...................................................................................................................................... 1

1.1 Background ................................................................................................................................. 1 1.2 The key objectives of this study ..................................................................................................... 1

2. Study Aim ........................................................................................................................................... 1 3. Study Implementation .......................................................................................................................... 2

3.1 Study process for each agency ....................................................................................................... 2 3.2 Target Executing Agencies ............................................................................................................ 3 3.3 Study Programme ........................................................................................................................ 4 3.4 Consultants engaged in the Study .................................................................................................. 5

APPENDICES ......................................................................................................................................... 7 APPENDIX 1 : STUDY OF NATIONAL PROCUREMENT SYSTEM (BANGLADESH) ............................. 9 APPENDIX 2 : STUDY OF NATIONAL PROCUREMENT SYSTEM (BHUTAN) .................................... 55 APPENDIX 3 : STUDY OF NATIONAL PROCUREMENT SYSTEM (NEPAL) ........................................ 97 APPENDIX 4 : STUDY OF NATIONAL PROCUREMENT SYSTEM (PAKISTAN) ................................ 137 APPENDIX 5 : STUDY OF NATIONAL PROCUREMENT SYSTEM (SRI LANKA) .............................. 169

1. Study Outline

1.1 Background

The quick and appropriate implementation of Official Development Assistance (ODA) programmes by the Japan

International Cooperation Agency (JICA) is dependent on executing agencies (EAs) having the necessary systems,

organisation, operational rules and capability to undertake the required procurement procedures smoothly. This

capability depends on both the degree of procurement experience of each EA and on the degree of maturation of

the national procurement system. The countries covered by the study are Bangladesh, Bhutan, Nepal, Pakistan and

Sri Lanka.

JICA is currently increasing its cooperation with new EAs in the Cooperation with new executing agencies in the

South Asian region. Many of these EAs have not previously cooperated with JICA and have no knowledge or

experience of JICA procurement guidelines, procedures and document templates for procurement. There is also a

large diversity in the procurement capability of the EAs and the staff they employ and in the contract and project

management experience of the organisations and their staff. It is therefore necessary for JICA to provide support

to the individual EAs to develop their procurement capacity.

1.2 The key objectives of this study:

A) To collect fundamental information related to the public procurement system and practice of each country in

the South Asian region that receives ODA from Japan, to undertake an evaluation of the procurement

capacity of the Japanese ODA loans executing agencies and relevant agencies who may become executing

agencies in the future, to appropriately grasp the capacity of each executing agency and to determine the

problems being experienced by these executing agencies. The information collated will be utilised as a

reference database for formulation of solutions to problems in procurement and to examine appropriate

procurement support by JICA can be undertaken during the project implementation period.

B) To formulate a capacity development plan that develops elements required for procurement support, to

implement training to executing agencies for collection of information to be instrumental in the feasibility of

materialization of problems for improvement of the procurement capacity and in the ranking, and also to

clarify the needs related to the necessary and practical support contents and training contents.

2. Study Aim Under this contract Crown Agents for Oversea Governments and Administrations (CA) prepared

an Assessment Tool (AT) that has been used to: A) report on the public procurement regulatory framework and system that applies in each

country and any planned or proposed changes, B) to identify the strengths and weaknesses of each EA’s procurement and project management

capability, C) prepare a capacity development programme including training materials for each EA. The AT

will ensure that each assessment is undertaken in a uniform manner, ensuring that each of the studies can be used for basic data and information for JICA to review and/or plan assistance to

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target countries in future. The findings of each assessment will be used to develop a capacity development programme for each of the EAs which will include a pilot procurement training seminar with one EA, in each of the target countries.

The contract will be undertaken in two separate phases. Under phase 1 the AT will be developed and a trial programme will be implemented in one or two countries. This initial study will identify any weaknesses in the AT and validate the proposed methodology. An interim report will be submitted to JICA following completion of phase 1. Any weaknesses identified will be rectified prior to the commencement of Phase 2. Under the current ODA programme, JICA will be working with a variety of EAs including some

that have no previous experience of implementing JICA programmes or utilising JICA procurement guidelines. In order to ensure that all the planned EA are able to implement these programmes efficiently and with a minimum of delay, JICA has contracted CA to undertake a study of: The public procurement systems that apply in each of the countries, including collecting data

from other donors; The procurement capacity of each EA; The procurement systems utilised by each EA; The contract management systems and skills required to manage large complex contracts for

international consultants; The project management systems and experience of the EA; The EA’s understanding and knowledge of JICA procurement guidelines;

The key outputs of the study will be: A review of the public procurement systems and capacity appertaining to each country A report of findings for each of the EAs An agreed capacity development programme for each EA with training materials for each; Experience of implementing the training programme for one EA in each country

The overriding aim of the study is to improve the efficiency of the EAs resulting in quicker disbursement of JICA ODA loans.

3. Study Implementation 3.1 Study process for each agency

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CHART 3.1 - Study Process

3.2 Target Executing Agencies

A) Bangladesh i. Roads and Highways Department (RHD)

ii. Chittagong Development Authority (CDA) iii. Chittagong Water Supply & Sewerage Authority (CWASA)

B) Bhutan i. Bhutan Power Corporation Limited (BPC)

ii. Ministry of Works and Human Settlement (MWHS) iii. Ministry of Agriculture and Forest (MOAF)

C) Nepal i. Public Procurement Monitoring Office (PPMO)

ii. Civil Aviation Authority of Nepal (CAAN) iii. Nepal Electricity Authority (NEA) iv. Melamchi Water Supply Development Board (MWSDB)

D) Pakistan i. National Highway Authority (NHA)

ii. National Transmission & Dispatch Company(NTDC)

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iii. Karachi Urban Transport Corporation (KUTC) E) Sri Lanka

i. Department of National Planning (DNP)

ii. Ministry of Health (MOH)

iii. National Water Supply & Drainage Board (NWSDB)

3.3 Study Programme

Actual study programme is as follows; TABLE 3.1 - Actual Study Programme

May2012

June July August September October November DecemberJanuary2013

1st visit

2nd visit

3rd visit

1st visit

2nd visit

3rd visit

1st visit

2nd visit

3rd visit

4th visit

1st visit

2nd visit

3rd visit

4th visit

1st visit

2nd visit

3rd visit

Ｂ

Ａ

Ｎ

Ｇ

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Ａ

Ｄ

Ｅ

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3.4 Consultants engaged in the Study

The consultants engaged in the study are as follows; TABLE 3.2 – Consultant List

Name Roles/Responsibilities Country in charge1 Edward Noel Setters Project Manager/

Procurement Expert (International) -

2 Masafumi Yatabe Deputy Project Manager/ Procurement Expert (International)

-

3 Elinor Caborn Procurement System ･ Capacity Assessment/ Capacity Development

-

4 Christine Jackson Procurement System ･ Capacity Assessment/ Capacity Development /Training Planner

-

5 Robert Graham Procurement Expert (International) Bangladesh 6 Steve Guppy Procurement Expert (International) Nepal 7 Gordon Bateman Procurement Expert (International) Nepal, Pakistan 8 Carlos Chamorro Procurement Expert (International) Sri Lanka 9 Doug Fraser Procurement Expert (International) Bhutan 10 Ryo Tsujimoto Procurement Expert (International) Bhutan 11 Christopher Folwell Procurement Expert (International) Pakistan 12 Deryck C. Uprichard Procurement Expert (International) Bangladesh 13 Saeedur Rahman Procurement Expert (Local) Bangladesh 14 Birendra Deoja Procurement Expert (Local) Nepal 15 Gurme Tenpa Procurement Expert (Local) Bhutan 16 Abdullah Mahesar Procurement Expert (Local) Pakistan 17 Veluppillai Mohan Procurement Expert (Local) Sri Lanka

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APPENDICES

APPENDIX 1 : STUDY OF NATIONAL PROCUREMENT SYSTEM (BANGLADESH)

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Study of National Procurement System of Bangladesh

Japan International Cooperation Agency

Report July 2012

Crown Agents Reference No. 28643

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Study of National Procurement System of Bangladesh Crown Agents

ii

List of Abbreviations

ADB Asian Development Bank

BDT Bangladeshi Taka

BoQ Bill of Quantity

CQBS Consultants Qualification Based Selection

CPTU Central Procurement Technical Unit

CSOS Community Service Organisation Selection

DCS Design Contest Selection

DPM Direct Procurement Method

EA Executing Agency

e-GP Electronic Government Procurement

EOI Expression of Interest

FBS Fixed Budget Selection

GoB Government of Bangladesh

ICB International Competitive Bidding

IMED Implementation Monitoring and Evaluation Division

JICA Japan International Cooperation Agency

JPY Japanese Yen

LCS Least Cost Selection

LTM Limited Tender Method

ODA Official Development Assistance

OSTETEM One Stage Tendering Method

PE Public Entity

PPA Public Procurement Act

PPR Public Procurement Rules

PPRP Public Procurement Reforms Project

QCBS Quality and Cost Based Selection

RFP Request for Proposals

RFQM Request for Quotation Method

RP Review Panel

SBD Standard Bidding Document

TOR Terms of Reference

TSTN Two Stage Tendering Method

UNCITRAL United Nations Commission on International Trade

WB World Bank

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1

Section 1: Introduction

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2

1. Study of Procurement Systems and Capacity in South Asia The quick and appropriate implementation of Official Development Assistance (ODA) programmes by the Japan International Cooperation Agency (JICA) is dependent on executing agencies (EAs) having the necessary systems, organisation, operational rules and capability to undertake the required procurement procedures smoothly. This capability depends on both the degree of procurement experience of each EA and on the degree of maturation of the national procurement system.

As JICA is now cooperating with new EAs in the South Asia region, it requested Crown Agents to undertake a study of procurement systems and capacity in selected target countries in South Asia in order to collect basic information on the public procurement systems and procedures of each country, determine the capacity of each target EA and formulate training plans to reflect areas requiring procurement support.

2. Purpose of Report As part of the study, this report provides an overview of the national procurement system of Bangladesh. It provides a general summary of the government system, based primarily on the legal and regulatory framework. Details on specific EAs can be found in separate capacity assessment reports.

As new EAs for JICA ODA loans are likely to be more familiar with their national procurement system than with the JICA Guidelines for the Employment of Consultants and for the Procurement of Goods and Services under Japanese ODA Loans (JICA Guidelines), this report highlights any areas where national rules or practices differ significantly from JICA Guidelines.

This report is issued as a draft, providing essential background information to inform capacity assessment work in EAs. It will be further updated, where appropriate, in light of information obtained during field visits for the assignment.

3. Methodology In order to facilitate and standardise studies of national procurement systems across all target countries, Crown Agents developed a questionnaire covering the key elements of a procurement system. This questionnaire is completed for each target country, primarily through a desk study by a procurement specialist from Crown Agents’ headquarters. The study is based on relevant legal documents, websites and information available from other recent studies of the national system, supplemented by input from the Crown Agents’ local consultant and from field visits by the team assessing procurement capacity in EAs.

This study of the national procurement system for Bangladesh is based on:

The Public Procurement Act (PPA), 2006 and The Public Procurement Rules (PPR), 2008

The official website of the Central Procurement Technical Unit at http://www.cptu.gov.bd/

The Bangladesh Public Procurement Reforms Project (PPRP I 2002-07 and PPRP II 2007 to present)

The completed questionnaire for Bangladesh is included at Appendix A. Section 2 of Section 3 provides brief recommendations for strengthening the national procurement system.

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3

Section 2: Summary of National Procurement System

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4. Overview of Procurement System and Reforms The aim of the public procurement policy in Bangladesh is to ensure efficiency, transparency and accountability in procurement of goods, works and services and, to ensure equitable treatment and, free and fair competition amongst all persons wishing to participate in such procurement. The public procurement is conducted by the public sector corporations and semi-autonomous bodies under 39 ministries of the government. The departments through about 265 different procuring entities under the respective ministries carry out procurements in their respective sectors with the exceptions for foodstuffs, printing, and stationery and to some extent health sector essentials that are handled both in the centre and locally.

The resources for public procurements are channelled through budgetary provisions in two distinct streams; one being included in the Annual Revenue Program and the other being included in the Annual Development Program, drawn from within the government’s Five Year Plan targets viz. sustaining overall economic stability, achieving rapid economic growth, creating increased opportunities for employment generation, development of infrastructure, communication, human resources and, poverty reduction.

Since independence in 1971, the public procurement procedures and practices have been influenced by the major international development partners’ viz. Japan International Cooperation Agency (JICA), The World Bank (WB), Asian Development Bank (ADB), Department for International Development (DFID) and few others. About 70 to 80 per cent of public expenditures are made on account of public procurement. The annual volume of the public procurement is around US $3 billion, out of which almost two-third is externally funded. The support ratio of the development partners to the Government of Bangladesh (GoB) in above is 60:40. The Central Procurement Technical Unit as CPTU has been established by the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning (MoP), to monitor compliance with the legal and regulatory framework.

IMED monitors implementation and evaluation of the projects/programs in general; not specific to public procurement proceedings. An online Procurement Management Information System (PROMIS) to monitor procurement based on 45 Key Performance Indicators (KPIs) has been developed to track procurement performance at 4 target procuring entities; Local Government Engineering Department (LGED), Bangladesh Water Development Board (BWDB), Roads and Highway Department (RHD) and Rural Electrification Board (REB) and to prepare summary reports at the entity and national level.

A national e-Government Procurement (e-GP) portal has been developed by CPTU to provide an on-line platform to carry out public procurement activities following the e-GP Guidelines, 2010. http://www.eprocure.gov.bd/. This tool is a single web portal through which procuring entities are able to perform their procurement activities. The web portal is accessible through the internet and is used by all government organizations and bidders. The e-GP System is built on a two stage process

(i) e-Tendering System: covering tendering processes such as centralized user registration, preparation of Annual Procurement Plan (APP), Instructions to Bidders (ITB), sale of Bidding Documents (BD), conducting online pre-bid meeting, collection of bid security, bid submission, bid evaluation, negotiations and contract awards and

(ii) e-Contract Management System (e-CMS): covering Contract Management, work plan submission, defining milestones, tracking and monitoring progress, generating reports, performing quality checks and generating invoices, vendor rating and preparation of completion certificates.

The institutional framework of internal financial control in Bangladesh is under the supervision of the Ministry of Finance (MoF) and external audit under the independent Comptroller and Auditor General (C&AG) who audits all public sector expenditures and submits annual and special reports to the Public Accounts Committee (PAC) of the national assembly. The audit reports, to the extent directed towards procurements, highlight only minor procedural lapses and unauthorized expenditures rather than major non-compliance, irregularities, malpractice, or corruption in procurement.

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Procurement Entities are obliged to undertake procurement post-review compliance reviews to monitor value-for-money. PEs are obliged to carry out such yearly post review by independent experts subject to a threshold of BDT 100 million of the annual volume of procurements of the individual entity.

GoB has developed a strategy for Public Private Partnerships issued Guidelines for suppliers/buyers in 2006 and 2010 along with the Guidelines for formulation, appraisal and approval of large, medium and small projects in specific sectors such as, power, gas, telecom, ports, roads, railway water supply, waste management, tourism.

The GoB and WB have recently agreed in principle to carry forward, beyond the current project period (April 2013), the two major components e.g. Capacity Development and e-GP development and training. The GoB is being supported by various other development partners, including JICA, ADB and WB.

5. Legal and Institutional Framework

5.1 Legal Framework

The public procurement procedures and practices evolved over the years from the days of the British regime.

To address several deficiencies namely; the absence of a sound legal framework governing public sector procurement, complex bureaucratic procedures, a lack of adequate professionally competent staff to manage public procurement, poor quality bidding documents and bid evaluation, ineffective administration of contracts and absence of adequate mechanisms for ensuring transparency and accountability, the government with the support of Development Partners undertook a reform of public procurement.

The Public Procurement Regulations (PPR), 2003, the Procedure for Implementation of the Public Procurement Regulations, 2003 and, the Public Procurement Approval Process, 2003 were introduced. A Public Procurement Act (PPA) was passed in 2006. This has been amended three times in July 2007, November 2009 and July 2010. Consequently, The Public Procurement Rules 2008 have been revised twice in August 2009 and March 2011. The initial amendments and revisions were mostly editorial but the subsequent amendments to the laws, raised serious concerns, amongst Development Partners.

Contract management and dispute resolution, is covered under the Arbitration Act, 2001, the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules of 1976 or the Rules of Conciliation and Arbitration of the International Chamber of Commerce in force and, others are also most in use in the case of international procurement.

The legal and regulatory framework aims to ensure the highest standards of performance in procurement proceedings. Corruption and misconduct in office is dealt with under Government Servants (Discipline and Appeal) Rules, 1985 or under the Service Rule relating to the general conduct and discipline, as applicable to such officer or employee. In addition, criminal procedures may also be initiated against, under The Prevention of Corruption Act, 1947, The Anti-corruption Act, 2004 and in appropriate cases, under The Penal Code, 1860.

The PPA, 2006 and PPR, 2008 are supplemented by further guidance documents; most of which have not yet been issued. The need for procurement and contract manuals has been recognised and, the guidelines are under preparation/review. Some standard bidding documents (SBDs) and standard forms have been issued by CPTU, some documents and templates still need to be completed and/or translated into both Bangla and English.

Despite on-going work to complete and further update the legal framework, enforcement of the PPA and PPR is reported to be weak due to understaffing and inadequate budgets

5.2 Scope of Application

The PPA, 2006 in accordance with the provisions under Section-3 is applicable as follows:

Procurement by PEs using public funds

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6

Procurement by any government, semi-government or any statutory body established under any law

Procurement using public funds by a company registered under the Companies Act, 1994

Procurement under a loan, credit or grant agreement or under any other agreement with a development partner or with a foreign state or an organisation, provided donor guidelines do not apply.

There is an exception to application of the PPA where procurement must follow donor guidelines under a financing agreement. This is important for implementation of ODA by JICA, allowing JICA Guidelines to prevail over the national law.

5.3 Institutional Framework

Each PE is required to establish a procurement unit or designate a unit with responsibility for procurement and contract management. Each PE must also form an evaluation committee. Depending on the size of the annual volume of procurement there may be more than one evaluation committee.

5.3.1 Procurement Responsibilities

Each PE is required to establish a procurement unit or designate a unit with responsibility for procurement and contract management. Each PE must also form an evaluation committee. Staff undertaking procurement are required to have qualifications prescribed by the CPTU and knowledge or training on procurement; CPTU has reported inadequate capacity in many PEs and intends to initiate an accreditation programme, as well as capacity needs assessment, training and establishment of a national procurement training system.

CPTU provides central support by establishing databases of suppliers and average prices for common user items. CPTU also intends to develop guidelines for framework contracts, to facilitate their use for common user items. Aside from these information functions, CPTU is prohibited from operational involvement with procurement processes (other than those to meet its own needs) or the settlement of procurement disputes.

Procurement units must mandatorily obtain approvals for procurement in the template of Annual Procurement Plan from the Head of the PE (HOPE). Standard Bidding Documents are approved and issued only by the CPTU and those are simply customised by the Procuring Entities to meet their needs for a specific procurement. Accordingly approvals to different stages of procurement process are defined by the GoB’s Delegation of Administrative and Financial Power culminating in award of contract and subsequent contract management.

5.3.2 Regulation and Oversight

CPTU was established in April, 2002 as a unit within the Implementation Monitoring and Evaluation Division of the Ministry of Planning. It is primarily a regulatory body, with functions in the following areas:

Policy: advising Government on procurement policy, submitting annual reports, reviewing the system, studying other systems and coordinating reforms

Regulatory framework: issuing guidelines, manuals and SBDs and advising PEs on their interpretation

Monitoring: collecting procurement and contract implementation statistics, requiring reports from PEs and monitoring procurement

Information dissemination: operating a procurement website and publishing a bulletin

Capacity building: arranging training and other programmes for public and private sector, arranging accreditation programmes for public sector procurement staff

Regulatory: operating the updated list of the bidders debarred by different PEs in the official website of the CPTU.

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According to the PPA, CPTU is also required to make, or cause to be made, technical auditing of compliance with the PPA. However, this technical audit role is also exercised by the individual PE on its own by independent consultant on annual basis under some specific terms and conditions. In addition to CPTU’s monitoring functions, the Office of the C & AG audits procurement and publishes a report on procurement audit.

This range of functions is consistent with those of regulatory bodies worldwide and the prohibition on involvement in the procurement of other PEs avoids any conflict with its regulatory functions. However, while legal requirements are adequate, the CPTU reports inadequate capacity and a need for institutional restructuring to effectively fulfil its mandate. CPTU reports that inadequate monitoring is currently taking place due to a lack of trained staff, resources and data. It is planning to strengthen the existing Procurement Monitoring Management Information System (PROMIS) comprising 45 KPIs

6. Procurement Procedures and Practices

6.1 Registration and Participation

The PPA contains no restrictions on participation in public procurement based on nationality, except for procurement of rations (food items), where contracts can only be concluded with Bangladeshi citizens. However, as noted in section 5.1 above, the Construction Business Act requires only Bangladeshi contractors to be used for works up to a value of BDT 60 million (approximately JPY 57 million. While the PPA prohibits discrimination as a general principle, price preferences are permitted for both goods and works; Bangladeshi goods will be purchased in preference to foreign goods at prices up to 10% more expensive. For consultancy services, shortlisted international consultants must have a local agent. Registration is more politically and socially driven in case of low value works at the local level. Amendment to law exempts past working experience for such registration which causes unskilled bidders to enter the procurement process

PPR Clause 52 The PE may maintain supplier lists of enlisted or qualified tenderers only for procurement in accordance with the National Limited Tendering method (LTM) Clause 63 & 64 for use and procedures. These lists must be reviewed annually.

Suppliers may be debarred by CPTU for a period of 1-3 years and a list of debarred suppliers is displayed on CPTU’s website. Grounds for debarring include breach of the code of conduct, failure to sign a contract, substantial defects in contract implementation, conviction of a criminal offence, misrepresentation or failure to pay a loan.

6.2 Procurement Planning

The procurement plan identifies and schedules all the steps involved in the procurement process. It follows certain fundamental approach, whether it is for a development project/program or under a revenue budget.

The annual procurement plan advises the national and international market and the contracting industries by way of posting the same above specified thresholds of BDT 10 million for goods and works and, BDT 5 million for service in the government’s website and, that of below in procuring entities’, website where available. It is mandatory by law for all procuring entities as precedent to initiate procurement proceedings. For convenience, all goods, works and services are grouped under the different templates. Once the templates are completed, the procurement plan is considered prepared and then approved by Head of the PE. The procurement plans are reviewed/updated on a quarterly basis incorporating the risks and uncertainties.

6.3 Procurement Methods

The PPA defines a range of procurement methods, with a preference for competitive bidding and various methods suitable for high and low values and for consultancy services, as well as goods, works and non-consultancy services. Thresholds are provided in the PPR and the splitting of requirements to avoid these thresholds is prohibited.

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The main permitted methods for goods, works and non-consultancy services are:

N.B. BDT 1 million = JPY-900 K = USD 12,000 approximately

Open Tender Method (OTM): No threshold; no conditions

Limited Tender Method (LTM): without threshold: employed in the following scenarios (i) specialist nature (ii) available only from a limited number of Tenderers/Suppliers (iii) an urgent need (iv) competitive Tendering impractical and (v) policy of standardization; Rule - 63

Limited Tender Method: with threshold: (i) BDT2.5/5 million for Goods and related services and “Stand alone service”; (ii) BDT 20 million for works and physical services. Conditions: (i) Only from enlisted contractors (ii) Offers from Tenderers on BOQ priced by PE (iii) Tendered prices more than ± 5 % of the BOQ price results in rejection of those Tenders and (iv) in case of a tie, selection by lottery; Rule-33 (3)(ka), Rule-63 (2) and Rule-98 Use of LTM is more popular at the local Government level due to political and social pressures.

One Stage Two Envelope Tendering Method (OSTETM) no threshold: but for national procurement of supply, installation and commissioning of processing plant or works of complex nature, Information Technology and works only; Section-68 (ka).

Two Stage Tendering Method (TSTM): no threshold: but for Turnkey Contracts or Contracts for large complex nature of plants. Not possible to prepare complete technical specifications in advance, PE Lacks the capability to prepare Specification, alternative technical approaches are not be available within the knowledge of PE

Request for Quotation Method (RFQM): with threshold: Revenue; goods BDT 200 thou (each case.) with annual aggregate of BDT 1 million and, works BDT 500 thou (each case) with annual aggregate of BDT 2 million. Development; goods BDT 500 thou (each case) with annual aggregate of BDT 2 million and, works BDT 1 million (each case) with annual aggregate of BDT 4 million. Conditions: (i) readily available Off-the-shelf Goods (ii) low value simple Works and physical Services and (iii) at least three responsive quotations; Rule 69,70 &73

For Bangladesh missions abroad for procurement of off-the-shelf readily available goods and unforeseen physical services the threshold is BDT 1.5 million in each case.

Direct Procurement Method (DPM): Variation orders/ Extra Work orders/Repeat Orders are DPM; Rule-75.

Direct Procurement Method without threshold: Only one Supplier or Contractor to submit an offer when it is of (i) proprietary nature, (ii) critical plant components (iii) exclusive dealer or manufacturer, (iv) Government-owned industry or factory using government own funds,(v) Small Scale Local Industries for specialized product and (vi )not interchangeable with existing equipment; Rule-76

Direct Procurement Method with threshold: (i) natural disasters; BDT 5 million each case with annual aggregate of 50 million and (ii) very urgent; BDT 100 thou or BDT 500 thou in each case with approval of HOPE. For above this threshold approval of Cabinet Committee for Economic Affairs CCEA required; Section-68, (iii) direct contracting with local community for poverty alleviation oriented activities; Rule-76. For Bangladesh Flag Carriers for procurement of fuel, spares and emergency repair the threshold is BDT 5 million

Variation orders/Extra Work Orders/Repeat Orders; threshold: 15% of Original contract price (OCP) and, in exceptional case up to a maximum 50% of OCP

In all cases must be approved in Annual Procurement Plan or approved by HOPE

The main permitted methods for consultancy services are: Quality & Cost Based Selection (QCBS) No thresholds; no conditions Consider the quality and cost of the services; Rule -103

Fixed Budget Selection (FBS) Conditions: Available budget is fixed. The assignment is relatively simple & can be precisely defined; Rule -103

－23－


9

Least Cost Selection (LCS) Conditions: (i) Standard or routine nature. e.g. - audits, architectural & engineering design of non-complex works where established practice & standards (ii) cost within the threshold; Rule-104Threshold: BDT 5 million

Community Service Organization Selection (CSOS) Conditions: Well qualified to assist in the preparation, management, and implementation of community development projects or Programs because of their involvement & knowledge of local issues, Community needs or participatory approaches-Rule-104 &109

Individual Consultant Selection: (i) Qualified individual expert while no team work is required (ii) in some case time threshold is less than 6 months

Consultants Qualification Based Selection (CQBS) Conditions: Full-fledged selection where quality of proposal rather than cost is prime consideration

Single Source Selection (SSS) Conditions: (i) where rapid selection is essential(ii)where only one firm or individual consultant has experience of exceptional worth (ii) For low value small assignments within threshold – Rule-104Threshold: BDT 1 million for firms and BDT 500,000 for Individuals

Design Contest Selection (DCS) Conditions: Technical excellence & innovation are of prime considerations

6.4 Bidding Process for Goods, Works and Non-Consultancy Services

6.4.1 Qualifications and Advertising

Bidding may be with or without prequalification. Prequalification is mandatory for large and complex contracts, as determined by CPTU guidance and is permitted for other procurement where considered appropriate by the PE. PEs are not permitted to apply qualification requirements to construction of a value less than BDT 6m (approximately JPY 5 million) and the estimated costs must be disclosed in the invitation to bid notice.

Qualification criteria must be stated in bidding, prequalification or RFP documents and must relate to areas such as technical qualifications, equipment, past performance. Provisions allowing only a particular class of supplier to participate are not permitted.

Invitations to bid or prequalify must be published in daily newspapers of national circulation (or internationally for open international bidding) and on the website of the PE or CPTU. Invitation for sealed quotations must be published in national or local newspaper. Where pre-qualification is used, all qualified applicants must be invited to bid.

6.4.2 Bidding Documents and the Bidding Process

PEs are required to prepare specifications, plans, drawings, designs or other descriptions based on relevant objective characteristics and functions. Particular brands or trademarks are only permitted where objective description is not possible and on the basis that equivalent products are also acceptable.

Standard templates are provided for bidding documents with specified content including clear descriptions of the procurement need, instructions on the bidding process, the evaluation criteria and methodology including any preferences and the terms and conditions of the contract. The PPR specific the permitted types of contract.

Bidders may be charged fees for bidding and prequalification documents, which are specified in the PPR and based on the cost incurred in preparation of the documents.

A deadline for receipt of bids must be set, with bids kept unopened until this time and any late bids rejected. The PPA sets minimum bidding periods of at least:

28 days for national bidding or pre-qualification

42 days for international bidding or pre-qualification

15 days for sealed quotations.

－24－


10

Bid securities are required with a fixed value, set by the PE, of up to 5% of the estimated value; this requirement must be stated in the bid notice. Bid securities from foreign banks must be counter-guaranteed by a Bangladeshi bank. Conditions for forfeiture of bid securities are wider than usually seen; in addition to the internationally accepted conditions of bid withdrawal, refusing an arithmetic correction, failing to sign a contract or to provide performance security, forfeiture is possible for changing price or other substantive matter when providing clarifications or breaching rules on conduct. Conditions relating to substantive changes and breach of conduct rules are subjective and could be open to abuse.

Bids must be opened in the presence of bidders’ representatives at the time and place stated in the bidding documents, immediately after the deadline for bid submission.

6.4.3 Evaluation

Evaluation must be based on the criteria stated in the bidding document and evaluation procedures are consistent with international accepted practices.

Award is to the lowest evaluated substantially responsive bid, although a preference may be given to Bangladeshi bidders (or foreign bidders in joint venture with a Bangladeshi bidder) under international bidding.

Under the sealed quotations method, the lowest evaluated quotation fulfilling specified requirements that is within the cost estimate is accepted.

No negotiations permissible for goods and works, in general. But PE may engage in conversation with the lowest responsive bidder when there is a budget constraint compared to very high bid price in order to reduce the bid price by reallocation of responsibilities and obligations; subject to the condition that lowest remains lowest in any case. The bidder if refuses to accept/agree no penalty can be imposed. Such conversation cannot be held with bidders other than the lowest responsive bidder

6.5 Procurement Process for Consultancy Services

6.5.1 Advertising and Shortlisting

Under the competitive proposals method, a notice requesting expressions of interest (EOIs) must be published on the CPTU website where the procurement is over BDT 10million Goods and Works (approximately JPY9.0 Million) and BDT 5 Million Services (approx. JPY 4.5 Million). The notice will normally be published nationally, but international publication is required where the procurement is over BDT 30m (approximately JPY 28 million), the services are not available at a competitive price from more than one consultant in Bangladesh, no proposals were received following national advertising or where a donor requires procurement from a foreign source. International notices must be in English.

The evaluation of EOIs must be based on qualifications, experience and capacity. Shortlists must normally consist of 3-6 firms and PEs must re-advertise if a shortlist of at least 3 is not developed. Shortlists can include renowned consultants who did not submit EOIs, if they are contacted by the PE.

The shortlist may be developed without advertising where the procurement is under BDT 1million (approximately JPY 940k).

6.5.2 Request for and Submission of Proposals

Standard Requests for Proposals (RFP) templates are issued by CPTU and used by PEs and customised for specific procurement. PEs are required to prepare terms of reference (TOR) stating the nature, time and place of services, tasks and expected outputs, instructions on the submission of proposals, the selection method, evaluation criteria, minimum technical pass mark and weightings and the terms and conditions of the contract.

Proposal submission deadlines are mentioned in RFPs clearly. Minimum Bidding periods are procurement type specific) 28 days for national and 42 days for international. Technical proposals are kept in safe custody of Client after opening by Bid Opening Committee and receipt for not more than 48 hours and then forwarded to evaluation committee. Financial proposals are sent to HOPE or AO’s safe custody until the Technical proposals are approved by HOPE.

－25－


11

6.5.3 Evaluation and Negotiation Ranking based on the methodology and weightings very much corresponds to the procurement methods used. For instance: QCBS: The technical score plus the financial score (using the weightings specified in RFPs) gives the combined score applied for ranking and the Consultant with the highest combined score is invited for negotiations FBS: Highest ranked technical proposal within the budget is found on the basis of Technical points (below 70 considered non-responsive) secured by the bidders. Weightings not required. LCS: Lowest evaluated proposal price among those that secured the minimum Technical points (i.e. pass mark of 70). Weightings not required. Single Source Selection SSS: Straight to negotiation on technical and financial aspects of the proposal as a whole Negotiations are limited to first ranked consultant and only on failure, is continued successively with the second and the third ranked consultants subject to budgetary constraints and fulfilment of other conditions. Areas of negotiations, other than fees, are specific methodology, work plan and activity schedule, organisation and staffing deliverables/training inputs, if training is a major component, client or PE’s inputs, Proposed contract price also reimbursables in case of Time-based Contracts

6.6 Contract Award and Management

The authority to award contracts is delegated by the MoF to the PE. The Delegation of Financial Power (DoFP) is the principal tool for determining the approving authority of the contract; which means the instructions with regard to the delegation of financial authority, issued by the Government from time to time, relating to the conduct of public procurement or sub-delegation of financial powers under such delegation. The approving authority decides, within the time-frame, in compliance with the provisions of the law and rules on the recommendations of evaluation committee. It may either approve the recommendations; or seek any clarification from the evaluation committee through the PE on any specific issues in connection with such recommendations; or explaining the reasons (i) reject the recommendations for a re-evaluation; or (ii) reject the recommendations with instructions to reprocess

The PE, upon receipt of approval within 7 days, but before expiry of the Bid validity, issues Notification of Award (NOA) to the winning Bidder with a draft contract in the case of goods and works. It provides the basis of acceptance of the Bid of the winning Bidder by the PE binding upon both the parties. In the case of service the winning Bidder is invited to sign the contract. Such NOA and Letters of Invitation to sign the contract are not issued by the PE until after any complaints or appeals have been resolved. This provision can be overruled by the Head of the PE, Secretary or the Minister in public interest. Basis of such certification shall be specifically recorded in the procurement proceedings and is considered final except for judicial review.

Any complaints in public procurement proceedings up to issuance of NOA by the PE are dealt with by the administrative authority and, appeals thereto on rotational basis by the multiple review panels formed by the government comprising of non-government professionals with requisite skills, integrity and probity to redress the grievances of the Bidders.

Contract management including monitoring actual progress against target, controlling cost overruns, periodic inspection or measurement of accomplishment, supervision of compliance with quality standards such as inspection, testing etc., operation of Management Information Systems, providing technical support to operation staff, and technical assessment and design services needed for implementation and completion of contract are the responsibility of the PE. In exceptional circumstances, issues such as termination, settlement of disputes, will be subject to adjudication and arbitration.

The critical elements in contract management are Variations/EWOs/Modifications, Time Extension, Liquidated Damages/Bonus, Delayed Payment, Compensation Events, Price Adjustment and Rate Adjustment. The resources constraints and rapid economic inflation also adversely impact contract management.

－26－


12

Maintaining procurement records is essential for procurement post review and, financial and accounts auditing by the Government. Records of procurement must be held for minimum of five years or more in special circumstances following approval of Head of the PE. This provides database for review of past performance of the procuring entities and contractors.

Notice of intent of acceptance must be sent to the selected bidder within 7 days of selection of lowest evaluated bid or successful proposal and information on the selected bidder (and the price of the selected bid for goods, works or non-consultancy services) must also sent to other bidders. The selected bid or proposal can only be accepted after a period of 7 days if no application for review is submitted. A public notice of procurement contracts must be published after conclusion of a contract.

PEs must communicate the grounds for rejection of bids to any bidder for goods, works and other services who requests this within 30 days of the notice of intent of acceptance. For consultancy services, information on the shortlist must be sent to all consultants who submitted EOIs and the financial proposals of consultants failing to reach the technical pass mark must be returned, with a notice stating the grounds for failure.

Contracts may be amended by written consent of both parties, providing the basic scope of the contract is not changed. The PPA contains no specific provisions on approvals for contract amendments. In cases of unforeseen circumstances, variation orders of up to 15% may be issued without a contract amendment. Variation orders over 15% require the approval of the Council of Ministers.

Contracts must state the mechanism for settlement of disputes. For goods, consultancy and non-consultancy services, this is arbitration as provided in the contract or prevailing law. For works, adjudication, a dispute resolution committee or arbitration may be used, depending on the contract value.

6.7 Record Keeping and Communications

Records of Procurement to be maintained by a PE for a minimum period of five years. Records may be retainer for more than five years in special cases with the approval of the Head of PE or an authorized officer

Communications with bidders/suppliers is to be in writing meaning “communication written by hand or machine duly signed and includes properly authenticated messages by facsimile or electronic mail”.

Communications relating to the clarifications on the questions raised by the bidders must be sent to all bidders without disclosing its source. Minutes of pre-bid meeting to be sent to all prospective bidders who have purchased or have been issued with the bidding documents only

7. Oversight and Enforcement Systems

7.1 Bidder Complaints

The PPA must establish a mechanism for bidders to challenge procurement decisions, allowing bidders to file an application for complaint and then review of any error or breach of duty by a PE in procurement proceedings. The right to complain and review must be stated in bidding documents. The mechanism is aimed at ensuring transparency, credibility, public confidence and trust. The complaints procedure comprises the following:

1. The tenderer submits the complaint to the Procuring Entity (the Project Director (PD), Line Director (LD), Project Manager (PM), Procurement Officer, Officer assigned for Procurement who issued the Tender or Proposal Document).

2. If the tenderer does not receive the response within 7 working days or is not satisfied with the response then complaint can be submitted to the Head of Procuring Entity (HOPE). HOPE should respond in 3 working days.

3. If the tenderer is not satisfied with the response from HOPE, the complaint can be submitted to the Secretary of Ministry. Secretary of Ministry should respond within 7 working days.

－27－


13

4. If the tenderer is still not satisfied with the response then the tenderer may wish to consider pursuing the appeal through the CPTU Review Panel (RP)

The complainant may appeal to a RP only if the Person has exhausted all his or her options of complaints to the administrative authority (i.e. Secretary) under the Rule 57 of PPR-2008. The Review Panel shall issue written decision within maximum 12 working days.

The review at Administrative Level provides an opportunity for the correction of mistakes, but cannot be considered an independent review. Very few complaints are submitted to the RP due to the high threshold and high deposit requirement. In practice, the majority of procurement complaints are submitted to the courts of law.

The public procurement system in Bangladesh therefore lacks an effective mechanism for challenging procurement decisions and falls far short of international standards, such as those set by the United Nations Convention against Corruption (which the GoB has ratified) which requires an effective system of review and appeal. Timescales for both submission of complaints and appeal and, the issue of decisions are short compared to many other countries.

7.2 Prevention of Corruption

The PPA contains codes of conduct for public officials involved in public procurement and for bidders. The former requires officials to act impartially and in the public interest, avoid conflict of interest, maintain confidentiality and not commit corrupt, fraudulent or collusive practices. The code of conduct for bidders covers bribery, misrepresentation, coercion, collusion, interfering with other bidders, seeking to influence the PE and conflict of interest. The PPA also requires bidding documents to state that bids will not be processed where there is a conflict of interest or legal action for fraud or corruption and requires bids to be rejected in cases of collusion.

Despite these rules, CPTU observes widespread collusion and intimidation at the time of bid submission with ineffective action to mitigate.

－28－


14

Section 3: Recommendations

－29－


15

8. Recommendations The following sections make recommendations for the strengthening of the national procurement system of Bangladesh. Many are already recognised by the Central Procurement Technical Unit / Government of Bangladesh. Note CPTU is yet to give final approval to the procurement related instruments for use at operational level.

8.1 Legal Framework

Complete all outstanding work on the revision of the legal framework. As well as addressing identified weaknesses in the PPA, such as the complaints mechanism as discussed in section 8.4 below, the revision should:

ensure that the PPA and other related laws are aligned to eliminate conflicts and the resulting confusion or loopholes;

complete all supporting documents and templates, such as guidelines and SBDs, including those for framework contracts;

ensure that all documents are available in both Bangla and English to facilitate their use;

ensure that rules, guidance documents and templates are suitable and proportionate for smaller PEs, such as local government bodies, schools and clinics. .


Strengthen CPTU to ensure it is able to fulfil its mandate of regulating and monitoring public procurement, as well as building capacity among PEs. This should be achieved through restructuring of CPTU and recruitment of additional staff as necessary, as well as developing the skills of current staff and ensuring it has all necessary tools.

Tools and training for setting criteria and bid evaluation, post award contract management, monitoring and auditing tasks are key priorities.

8.3 Capacity Development

Develop capacity among all government procurement staff to ensure they have good procurement skills and are able to comply with the legal framework. Capacity development initiatives should differentiate between different procurement roles, including practitioners in procurement units, those responsible for approvals, including the Head of the PE and staff with technical involvement, such as the preparation of specifications and terms of reference and participation in evaluation committees.

All development partners interfaced concurred with the view expressed by the PEs that there is a need for a joint sensitisation seminar aimed at high level government bureaucrats, public officials and Chief executives of Government Agencies. Bangladesh Public Administration Training Centre (BPATC) and Bangladesh Civil Service Admin (BCSA) Academy have though prepared a two-three day training module on Public Procurement in its routine foundation course for entry-level and mid-level officers. Senior officers who have influence in the decision making process and procurement proceedings are not receiving guidance in this area.

It is recommended that a capacity development programme for senior staff to cover the key aspects of the public procurement process to ensure they are aware of their responsibilities and to discourage undue interference and delay in awards of high value contracts.

8.4 Complaints Mechanism

It is recommended training is provided at all levels within the procurement process on the settlement of disputes arising from contracts, especially by adjudication and arbitration. Access to dispute resolution is not clearly dealt with in the current capacity development programme being conducted by CPTU.

－30－


16

It is also recommended that the complaints mechanism is revised to ensure greater access by bidders to an effective system of review and appeal. This should include the abolition of value thresholds and reduction of fees for the review committee to ensure genuine access to independent review prior to appeal to the law courts. Timescales for review and the rights of bidders should be revised in line with international standards; the UNCITRAL Model Law on Public Procurement provides a useful template

－31－


17

Appendix A: Completed Questionnaire on National Procurement System

－32－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

18

Stud

y on

the

Nat

iona

l Pro

cure

men

t Sys

tem

of B

angl

ades

h Th

is s

tudy

is p

rimar

ily a

des

k st

udy

base

d on

Th

e C

entra

l Pro

cure

men

t Tec

hnic

al U

nit (

CP

TU) w

ebsi

te w

ww

.cpt

u.go

v.bd

Ref

eren

ce to

The

Pub

lic P

rocu

rem

ent R

ules

200

8 (n

ote

stam

ped

Pre

limin

ary

Wor

king

Dra

ft on

web

site

?)

B

DTe

nder

.info

web

site

Pub

lic P

rocu

rem

ent R

efor

m P

roje

ct ,P

PR

P I

(200

2 –

2007

) and

PP

RP

II (2

007

to p

rese

nt) t

o be

impl

emen

ted

over

5 y

ears

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

A

Le

gal F

ram

ewor

k

A

1 W

hich

doc

umen

ts m

ake

up t

he l

egal

fra

mew

ork?

i.e

. is

th

ere

a pr

ocur

emen

t la

w

/ re

gula

tions

/ g

uide

lines

/

man

ual?

Pub

lic

Pro

cure

men

t A

ct

2006

(P

PA)

incl

udes

e-

Gov

ernm

ent

Pro

cure

men

t Cla

use

65

The

Pub

lic P

rocu

rem

ent

Rul

es 2

008

(PPR

)(Pre

limin

ary

Wor

king

D

raft)

revi

sed

from

PP

R 2

003

in li

ght o

f PP

RP

)

Sta

tus

now

? N

ot

real

ly

wor

king

dr

aft.

It is

ga

zette

d by

th

e G

ovt

(Ben

gali

vers

ion)

. S

ubse

quen

t am

endm

ents

are

ther

e to

o.

Lega

l fra

mew

ork

does

no

t in

clud

e th

e “D

ISP

OS

AL”

iss

ue a

t th

e en

d. D

ispo

sals

are

se

para

tely

ha

ndle

d by

th

e ag

enci

es.

For

inst

ance

the

dis

posa

ls o

f m

edic

al w

aste

s. I

n ca

se

of

disp

osal

of

to

xic

subs

tanc

es

like

BA

TTE

RY

pro

cure

d by

an

agen

cy f

rom

a lo

cal

prod

ucer

has

nat

ural

ly b

een

embe

dded

in

the

proc

urem

ent s

yste

m.

DIS

PO

SA

L is

sues

are

to b

e th

ough

t in

futu

re.

A2

Are

th

ere

stan

dard

bi

ddin

g do

cum

ents

an

d/or

an

y ot

her

stan

dard

fo

rms

or

tem

plat

es?

If so

, ar

e th

ey b

ased

on

a pa

rticu

lar

tem

plat

e,

such

as

do

nor

docu

men

ts?

Sta

ndar

d Te

nder

Doc

umen

ts (S

TD)

RFQ

s fo

r Goo

ds to

BD

T 5

Lakh

, STD

Nat

iona

l & In

t’l

STD

s fo

r Wor

ks N

atio

nal &

Int’l

S

tand

ard

Pre

-Qua

lific

atio

n D

oc In

t’l w

orks

>B

DT

3500

Lak

h.

(US

D 4

.2 M

illio

n)

Alig

ned

proc

urem

ent p

olic

ies

and

prac

tices

to th

ose

of W

B.

Als

o S

RFP

s, S

TDs

for

Goo

ds, S

tand

ard

App

licat

ion

for

Enl

istm

ent

(SA

FE),

RFQ

s fo

r wor

ks, P

QD

s et

c

Wor

ld

Ban

k’s

2002

C

ount

ry

Pro

cure

men

t A

sses

smen

t R

epor

t (C

PA

R)

cite

d as

a

very

cl

ose

blue

prin

t for

PP

RP

. (so

urce

Eur

o ne

twor

k on

Deb

t &D

evt)

euro

dad.

org.

9

STD

s w

ere

initi

ally

app

rove

d ba

sed

on P

PR

, 20

03

and

thos

e w

ere

revi

sed

and

upda

ted

subs

eque

ntly

bas

ed o

n P

PR

,200

8. A

ll th

ese

are

in d

raft

stat

us a

nd b

eing

rev

iew

ed b

y C

PTU

for

appr

oval

－33－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

19

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

B

Sc

ope

of A

pplic

atio

n

B1

W

ho

does

th

e le

gal

fram

ewor

k ap

ply

to?

i.e.

does

it c

over

par

asta

tals

an

d st

ate

owne

d en

terp

rises

or

on

ly

gove

rnm

ent m

inis

tries

?

PP

A C

laus

e 3

(2)

(a-d

) a.

Pro

curin

g E

ntity

(PE

), b,

sem

i go

vt,

stat

utor

y bo

dies

, c,

com

pani

es r

egis

tere

d un

der

Com

pani

es A

ct

1994

usi

ng p

ublic

fun

ds,

d, lo

an,

cred

it or

gra

nt u

nder

agr

eem

ent

with

a d

evel

opm

ent p

artn

er o

r with

fore

ign

stat

e or

an

orga

nisa

tion.

Fo

r goo

ds, w

orks

and

ser

vice

s.

Gen

eral

ly

any

entit

y us

ing

publ

ic

fund

s.

Rev

enue

gen

erat

ed fu

nds

are

not c

onsi

dere

d as

pu

blic

fund

s.

B2

Doe

s th

e le

gal

fram

ewor

k ap

ply

to

all

proc

urem

ent o

r are

ther

e ex

cept

ions

?

Ver

y w

ide

see

abov

e E

xcep

tion

for

deve

lopm

ent p

artn

er fu

nded

pro

ject

s if

agre

ed in

the

Pro

ject

A

ppra

isal

D

ocum

ent

(PA

D)

and

also

fo

r pr

ocur

emen

t re

late

d to

nat

iona

l sec

urity

Ref

orm

s in

lega

l fra

mew

ork

is in

a p

erio

d o

f tra

nsiti

on.

B3

Wha

t pr

ovis

ion

does

the

le

gal

fram

ewor

k m

ake

for

appl

icat

ion

of

alte

rnat

ive

dono

r rul

es?

PP

A 3

(2) d

. con

ditio

ns o

f alte

rnat

ive

agre

emen

ts s

hall

prev

ail.

PP

A 4

Act

to o

verr

ide

othe

r law

s.

Dev

elop

men

t pa

rtner

s ha

ve d

emon

stra

ted

thei

r re

serv

atio

n in

som

e sp

ecifi

c ar

eas

of s

mal

l val

ue

cont

ract

s w

here

the

sel

ectio

n pr

oces

s is

bas

ed

on

LOTT

ER

Y.

Cur

rent

ly

WB

an

d ot

hers

in

pa

rticu

lar a

re n

ot e

ndor

sing

the

SB

Ds

draf

ted

by

the

govt

. N

eeds

to b

e en

dors

ed b

y th

e de

v. p

artn

ers

C

Inst

itutio

nal

Fram

ewor

k

C1

Is

proc

urem

ent

cent

ralis

ed

or

dece

ntra

lised

? i.e

. is

th

ere

any

cent

ral

body

re

spon

sibl

e fo

r co

nduc

ting

or a

ppro

ving

pr

ocur

emen

t or

do

es

each

ag

ency

do

th

is

itsel

f?

Dec

entra

lised

to th

e pr

ocur

ing

entit

ies

PP

A C

hapt

er tw

o D

eleg

atio

n of

fin

anci

al p

ower

tab

le t

o de

term

ine

thre

shol

ds f

or

App

rovi

ng A

utho

rity.

C

abin

et C

omm

ittee

for

Gov

t P

urch

ase

(CC

GP

), M

inis

ter,

Hea

d of

th

e P

rocu

ring

Ent

ity (H

OP

E),

Pro

ject

Dire

ctor

(PD

) (an

d be

low

with

su

b-de

lega

tion)

P

artly

cen

trally

in

proc

urem

ent

of d

ivis

ible

com

mod

ities

, fo

ods,

sc

hool

text

boo

ks, s

ome

exte

nt h

ealth

ess

entia

ls e

tc

CP

TU is

not

man

date

d to

be

invo

lved

in s

peci

fic

proc

urem

ent

carr

ied

out

by A

genc

ies;

but

in

prac

tice

agen

cies

ar

e us

ing

CP

TU

for

inte

rpre

tatio

n of

pro

cure

men

t iss

ues;

mor

e lik

e a

“sca

pego

at”

－34－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

20

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

C

2 Is

th

ere

a re

gula

tory

bo

dy fo

r pr

ocur

emen

t? If

so

, w

hat

are

its

func

tions

?

The

CP

TU i

s a

perm

anen

t in

stitu

tion

of t

he g

over

nmen

t, fu

nded

un

der

the

reve

nue

budg

et a

nd e

stab

lishe

d fo

r ca

rryin

g ou

t th

e pu

rpos

es o

f Sec

tion

67 w

hich

sta

tes

as fo

llow

s:

m

onito

ring

com

plia

nce

with

and

impl

emen

tatio

n of

this

Act

arra

ngin

g fo

r pe

rform

ance

of

the

nece

ssar

y fu

nctio

ns a

nd

resp

onsi

bilit

ies

inci

dent

al th

eret

o

perfo

rmin

g an

y ot

her r

espo

nsib

ilitie

s

Mon

itorin

g co

mpl

ianc

e fu

nctio

ns b

y C

PTU

is fa

r be

hind

, bec

ause

of u

nder

staf

fing,

bud

gets

etc

.

C3

Who

is

re

spon

sibl

e fo

r m

onito

ring

or

audi

ting

proc

urem

ent?

The

CP

TU w

as e

stab

lishe

d in

Apr

il 20

02 a

s a

unit

with

in t

he

Impl

emen

tatio

n M

onito

ring

and

Eva

luat

ion

Div

isio

n of

the

Min

istry

of

Pla

nnin

g. It

is h

eade

d by

a D

irect

or-G

ener

al, w

ho re

ports

dire

ctly

to

th

e S

ecre

tary

, IM

ED

. Th

e D

G

has

a st

aff

com

plem

ent

of

Dire

ctor

s, D

eput

y D

irect

ors,

Ass

ista

nt D

irect

ors,

Sys

tem

s A

naly

st,

Pro

gram

mer

and

oth

er s

uppo

rt st

aff.

Und

er

clau

se

67

of

PP

A

the

CP

TU

is

resp

onsi

ble

for

publ

ic

proc

urem

ent

a. P

rovi

ding

for

mon

itorin

g co

mpl

ianc

e w

ith a

nd im

plem

enta

tion

of

this

Act

thro

ugh

the

auth

ority

as

desi

gnat

ed b

y th

e G

over

nmen

t

Eve

n P

E it

self

whe

n th

e an

nual

vol

ume

of h

is/h

er p

rocu

rem

ent

is

BD

T 10

milli

on (

US

D 1

20,0

00)

or m

ore

by e

ngag

ing

inde

pend

ent

cons

ulta

nt

Eac

h ag

ency

pr

ocur

ing

annu

ally

ov

er

the

spec

ified

thre

shol

d sh

ould

beg

in th

eir

own

post

-pr

ocur

emen

t re

view

fol

low

ing

proc

edur

es.

Dra

ft pr

oced

ures

sho

uld

be e

ndor

sed

by t

he C

PTU

. Th

is

is

criti

cally

im

porta

nt

for

mon

itorin

g co

mpl

ianc

e an

d ac

hiev

ing

VFM

.

C4

Who

is

re

spon

sibl

e fo

r pr

ocur

emen

t w

ithin

eac

h ag

ency

? i.e

.is

ther

e a

proc

urem

ent

unit,

de

sign

ated

pr

ocur

emen

t st

aff

with

in d

epar

tmen

ts

or

any

form

of

co

mm

ittee

?

PP

A C

hapt

er t

wo

devo

lves

to

Pro

curin

g E

ntiti

es p

repa

ratio

n of

ap

plic

atio

n (P

re-q

ualif

icat

ion)

, ten

der

or p

ropo

sal d

ocum

ents

a

nd

the

cons

titut

ion

of o

peni

ng a

nd e

valu

atio

n co

mm

ittee

s. A

ppro

ving

A

utho

rity

as d

efin

ed in

del

egat

ion

of fi

nanc

ial p

ower

s.

Eve

ry p

rocu

ring

depa

rtmen

t of

an

agen

cy i

s re

spon

sibl

e fo

r pr

ocur

emen

t pro

vide

d th

at it

has

a

budg

et.

Sev

eral

ent

ities

hav

e es

tabl

ishe

d its

ow

n ce

ntra

l P

rocu

rem

ent

Dire

ctor

ate

for

over

vi

ewin

g th

e pr

ocur

emen

t ac

tiviti

es o

f di

ffere

nt

entit

ies

unde

r th

e ag

ency

. P

rocu

rem

ent

staf

f at

th

e op

erat

iona

l le

vel

are

not

spec

ifica

lly

desi

gnat

ed

for

proc

urem

ent

purp

oses

bu

t ge

nera

lly r

emai

n re

spon

sibl

e fo

r pr

ocur

emen

t fu

nctio

ns.

－35－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

21

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

C

5 A

re th

ere

any

requ

irem

ents

for

qual

ifica

tions

or

regi

stra

tion

for

proc

urem

ent s

taff?

PP

A C

laus

e 26

per

sons

doe

s th

is i

nclu

de p

rocu

rem

ent

staf

f in

te

rms

of m

inim

um q

ualif

ying

crit

eria

?

Key

Obj

ectiv

es to

Impr

ove

Proc

urem

ent M

anag

emen

t Cap

acity

To

subs

tant

ially

en

hanc

e th

e ca

paci

ty

for

proc

urem

ent

man

agem

ent t

hrou

gh a

stru

ctur

ed e

duca

tion

and

train

ing

prog

ram

ad

dres

sed

to th

e ne

eds

of th

e se

nior

man

ager

s, w

orki

ng le

vel s

taff,

au

dito

rs a

nd b

usin

ess

com

mun

ity in

ord

er to

bui

ld a

pro

fess

ion

of

proc

urem

ent s

peci

alis

ts.

Und

er th

e pr

ocur

emen

t man

agem

ent c

apac

ity b

uild

ing

focu

s w

ill be

gi

ven

prim

arily

on

two

area

s:

(a)

inst

itutio

naliz

ing

com

preh

ensi

ve

and

regu

lar

train

ing

prog

ram

s th

roug

h se

lect

ed

publ

ic

and

priv

ate

train

ing

inst

itutio

ns

(b)

esta

blis

hing

m

onito

ring

and

eval

uatio

n ca

paci

ty

to

track

proc

urem

ent p

erfo

rman

ces

of th

e pu

blic

sec

tor e

ntiti

es.

Pro

cure

men

t qu

alifi

catio

ns

or

regi

stra

tion

are

not

spec

ific

beca

use

the

subj

ect i

s ve

ry n

ew in

re

gard

to

ac

adem

ic

or

prof

essi

onal

qu

alifi

catio

ns.

Gra

dual

ly it

is h

owev

er f

ocus

sing

on

suc

h qu

alifi

catio

ns w

hich

will

furth

er e

nhan

ce

the

stat

us o

f the

pro

fess

ion.

.

C6

How

is

pr

ocur

emen

t re

view

ed

or

appr

oved

w

ithin

eac

h ag

ency

? i.e

. is

the

re a

ny c

omm

ittee

or

boa

rd w

hich

app

rove

s an

d ar

e th

ere

leve

ls o

f au

thor

ity f

or a

ppro

vals

? A

t w

hat

stag

es

is

proc

urem

ent r

evie

wed

?

PP

R C

laus

e 36

App

rova

l P

roce

dure

s lin

ked

to a

“D

eleg

atio

n of

Fi

nanc

ial P

ower

” C

omm

ittee

s ar

e pr

ocur

emen

t sp

ecifi

c fo

r la

rge

agen

cies

. For

sm

all a

genc

ies

ther

e ar

e st

andi

ng

com

mitt

ees.

Ext

erna

l app

oint

men

ts fr

om o

utsi

de

the

proc

urin

g ag

ency

ar

e in

clud

ed

in

thes

e co

mm

ittee

s bu

t in

pra

ctic

e th

ey a

re s

een

mor

e as

orn

amen

tal.

C7

Is

resp

onsi

bilit

y fo

r co

ntra

ct

man

agem

ent

with

in

each

ag

ency

sp

ecifi

ed?

PP

R C

laus

e 38

Con

tract

Adm

inis

tratio

n &

Man

agem

ent d

etai

ls ro

le

Pro

curin

g E

ntity

mus

t pl

ay.

Incl

ude

prov

isio

n fo

r co

llect

ive

use

of

labo

rato

ries,

insp

ectio

n an

d te

stin

g fa

cilit

ies.

Pro

cure

men

t pr

ocee

ding

s an

d co

ntra

ct

man

agem

ent a

re c

arrie

d ou

t mos

tly b

y th

e sa

me

staf

f al

ong

the

verti

cal

chan

nel

of a

utho

rity.

In

som

e la

rge

proc

urem

ent

cons

ulta

nts

are

enga

ged

in s

uper

visi

on a

nd e

xecu

tion

of t

he

cont

ract

s.

－36－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

22

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

C

8 W

ho

perfo

rms

finan

cial

m

anag

emen

t fu

nctio

ns

(e.g

. co

mm

itmen

ts,

paym

ents

etc

)? A

re t

hey

sepa

rate

d fro

m

proc

urem

ent?

The

Hea

d of

the

PE

is r

espo

nsib

le fo

r fin

anci

al m

anag

emen

t. Th

e fin

anci

al m

anag

emen

t of t

he G

ovt i

s ca

rried

out

by

the

Fina

nce

Act

, 20

11 (

Act

No.

XII

of 2

011)

. P

rocu

rem

ent

and

Fina

nce

func

tions

ap

pear

sep

arat

ed fo

r est

ablis

hing

a c

heck

-n-b

alan

ce.

Bro

adly

th

e pa

ymen

t pa

rt is

se

para

ted

but

certi

ficat

ion

and

acce

ptan

ce p

art

is w

ithin

the

ag

ency

. A

dvan

tage

is

fin

anci

al

cont

rol

but

disa

dvan

tage

is

‘p

aym

ent

dela

y”

caus

es

“impl

emen

tatio

n de

lays

”

D

Reg

istr

atio

n an

d Pa

rtic

ipat

ion

D1

Are

ther

e an

y re

quire

men

ts

for

supp

lier

regi

stra

tion

as a

re

quire

men

t of

par

ticip

atio

n in

pr

ocur

emen

t or

as

a

cond

ition

of c

ontra

ct a

war

d?

If so

, giv

e de

tails

PP

R C

laus

e 52

The

PE

may

mai

ntai

n su

pplie

r lis

ts o

f en

liste

d or

qua

lifie

d te

nder

ers

only

for

pro

cure

men

t in

ac

cord

ance

with

the

Nat

iona

l Li

mite

d Te

nder

ing

met

hod

(LTM

) Cla

use

63 &

64

for u

se a

nd p

roce

dure

s. T

hese

list

s m

ust b

e re

view

ed a

nnua

lly.

Reg

istra

tion

is m

ore

polit

ical

ly a

nd s

ocia

lly d

riven

in

case

of

lo

w

valu

e w

orks

at

th

e lo

cal

leve

l. A

men

dmen

t to

law

exe

mpt

s pa

st w

orki

ng e

xper

ienc

e fo

r su

ch r

egis

tratio

n w

hich

cau

ses

unsk

illed

elem

ents

in

pro

cure

men

t pro

ceed

ings

.

D2

Are

ther

e an

y re

stric

tions

on

parti

cipa

tion

or

orig

in

of

good

s or

st

aff

base

d on

na

tiona

lity?

If

so,

give

de

tails

PP

R L

TM a

bove

. P

refe

renc

e of

UN

CIT

RA

L M

odel

law

to p

rom

ote

dom

estic

indu

strie

s? (s

ourc

e E

urod

ad)

D3

Is t

here

any

mec

hani

sm f

or

susp

ensi

on

of

non-

perfo

rmin

g su

pplie

rs a

nd/o

r th

ose

guilt

y of

mis

cond

uct?

If

so, g

ive

deta

ils

PP

R T

erm

inat

ion

clau

se 4

2 in

term

s of

Gen

eral

CoC

s.

Law

has

goo

d pr

ovis

ions

but

can

har

dly

be a

pplie

d.

Pol

itica

l inf

luen

ce a

nd fe

ar fa

ctor

s de

ter t

he a

genc

ies.

－37－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

23

E Pr

ocur

emen

t Pla

nnin

g

E

1 A

re

agen

cies

re

quire

d to

pr

epar

e pr

ocur

emen

t pl

ans

as

part

of

thei

r bu

dget

ing

proc

ess?

PP

R 1

6 (1

) Th

e pr

epar

atio

n of

a P

rocu

rem

ent

Pla

n is

m

anda

tory

for

all

PE

s ea

ch f

inan

cial

yea

r. S

epar

atel

y fo

r D

evel

opm

ent

Pro

ject

s or

Pro

gram

mes

and

of

Rev

enue

bu

dget

s

Pro

cure

men

ts p

lans

are

in

plac

e bu

t th

ese

are

not

prac

tical

ly

post

ed

in

the

rele

vant

w

ebsi

te

for

sens

itizi

ng th

e m

arke

ts in

adv

ance

.

E2

Are

ag

enci

es

requ

ired

to

prep

are

proc

urem

ent

plan

s fo

r m

ajor

pr

ocur

emen

t re

quire

men

ts?

Pro

cure

men

t pla

ns a

re m

anda

tory

for

all m

ajor

and

min

or

proc

urem

ent.

To b

e ap

prov

ed b

y H

OP

E. R

ule-

16

Lack

of s

kills

is fa

ctor

for t

he c

omm

on a

bsen

ce o

f the

pr

epar

atio

n a

soun

d P

rocu

rem

ent p

lan.

E3

Wha

t ar

e th

e ke

y co

nten

ts

of p

rocu

rem

ent

plan

s? E

.g.

met

hods

, pac

kagi

ng, t

ype

of

cont

ract

s, ti

mes

cale

s et

c

PP

R

15

(1)

&

(2)

cove

rs

Pro

cure

men

t P

lann

ing

&

Sel

ectio

n of

Pro

cure

men

t Met

hods

and

fact

ors

to c

onsi

der

whe

n co

nsol

idat

ion

good

s pa

ckag

es (l

ots)

.

Min

or m

ism

atch

bet

wee

n th

e TP

P in

Pro

ject

Tem

plat

e an

d A

PP

(A

nnua

l P

rocu

rem

ent

Pla

n) n

eeds

to

be

rem

oved

. TP

P m

eans

Tec

hnic

al A

ssis

tanc

e P

roje

ct P

ropo

sal

F Pr

ocur

emen

t Met

hods

F1

Is

th

ere

a pr

efer

ence

fo

r op

en c

ompe

titio

n, w

ith o

ther

m

etho

ds

requ

iring

ju

stifi

catio

n?

PP

A,2

006,

S

ectio

n-31

an

d P

PR

,200

8,

Rul

es-6

1 pr

efer

ence

is

gi

ven

to

OTM

fo

r go

ods

and

wor

ks

proc

urem

ent;

subj

ect

to t

he c

ondi

tions

tha

t th

e m

etho

d ot

her

than

O

TM,

subj

ect

to

spec

ified

sp

ecia

l ci

rcum

stan

ces

and

thre

shol

ds, i

s m

ore

just

ifiab

le.

Ther

e is

tre

nd f

or o

ptin

g fo

r m

etho

d ot

her

than

OTM

dr

iven

by

polit

ical

exp

edie

ncy.

F2

Wha

t pr

ocur

emen

t m

etho

ds

are

perm

itted

fo

r go

ods,

w

orks

and

non

-con

sulta

ncy

serv

ices

? P

rovi

de d

etai

ls o

f th

resh

olds

an

d co

nditi

ons

for u

se

Goo

ds a

nd W

orks

and

Phy

sica

l ser

vice

s N

.B. B

DT

1 m

illio

n =

USD

12,

000

appr

ox

Ope

n Te

nder

Met

hod

: No

thre

shol

d; n

o co

nditi

ons

Li

mite

d Te

nder

Met

hod:

with

out t

hres

hold

:(i)

spec

ializ

ed

natu

re

(ii)

avai

labl

e on

ly

from

a

lim

ited

num

ber

of

Tend

erer

s/S

uppl

iers

(iii)

an

urge

nt n

eed

(iv)c

ompe

titiv

e Te

nder

ing

impr

actic

al a

nd (

v) p

olic

y of

sta

ndar

diza

tion;

R

ule

-63

Lim

ited

Tend

er M

etho

d: w

ith t

hres

hold

: (i)

BD

T2.5

/5

milli

on f

or G

oods

and

rel

ated

ser

vice

s an

d “S

tand

alo

ne

serv

ice”

; (ii

) B

DT

20

milli

on

for

wor

ks

and

phys

ical

se

rvic

es. C

ondi

tions

: (i)

Onl

y fro

m e

nlis

ted

cont

ract

ors

(ii)

Ade

quat

ely

addr

esse

d

－38－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

24

F Pr

ocur

emen

t Met

hods

O

ffers

from

Ten

dere

rs o

n B

OQ

pric

ed b

y P

E (i

ii) T

ende

red

pric

es m

ore

than

± 5

% o

f th

e B

OQ

pric

e re

sults

in

reje

ctio

n of

th

ose

Tend

ers

and

(iv)

in

case

of

TI

E,

sele

ctio

n by

lot

tery

; R

ule-

33 (

3)(k

a),

Rul

e-63

(2)

& R

ule-

98(k

a)

One

St

age

Two

Enve

lope

Te

nder

ing

Met

hod

(OST

ETM

): no

thr

esho

ld:

but

for

natio

nal p

rocu

rem

ent

of

supp

ly,

inst

alla

tion

and

com

mis

sion

ing

of

proc

essi

ng

plan

ts

or

wor

ks

of

com

plex

na

ture

,Com

mun

icat

ion

Tech

nolo

gy a

nd w

orks

onl

y; S

ectio

n-68

(ka)

.

Two

Stag

e Te

nder

ing

Met

hod

(TST

M):

no th

resh

old:

but

fo

r Tu

rnke

y C

ontra

cts

or

Con

tract

s fo

r la

rge

com

plex

na

ture

of

pl

ants

. N

ot

poss

ible

to

pr

epar

e co

mpl

ete

tech

nica

l sp

ecifi

catio

ns

in

adva

nce,

P

E

Lack

s th

e ca

pabi

lity

to p

repa

re S

peci

ficat

ion,

alte

rnat

ive

tech

nica

l ap

proa

ches

are

not

be

avai

labl

e w

ithin

the

kno

wle

dge

of

PE

OS

TETM

mea

ns O

ne S

tage

Tw

o E

nvel

ope

Tend

erin

g M

etho

d TS

TM m

eans

Tw

o S

tage

Ten

derin

g M

etho

d

RFQ

M:

with

thr

esho

ld:

Rev

enue

; go

ods

BD

T 20

0 th

ou

(eac

h ca

se.)

with

ann

ual a

ggre

gate

of B

DT

1 m

illion

and

, w

orks

BD

T 50

0 th

ou (e

ach

case

) with

ann

ual a

ggre

gate

of

BD

T 2

milli

on.

Dev

elop

men

t; go

ods

BD

T 50

0 th

ou (

each

ca

se)

with

ann

ual a

ggre

gate

of

BD

T 2

milli

on a

nd,

wor

ks

BD

T 1

milli

on (e

ach

case

) with

ann

ual a

ggre

gate

of B

DT

4 m

illion

. C

ondi

tions

: (i)

re

adily

av

aila

ble

Off-

the-

shel

f G

oods

(ii)

low

val

ue s

impl

e W

orks

and

phy

sica

l Ser

vice

s an

d (ii

i) at

leas

t th

ree

resp

onsi

ve q

uota

tions

; R

ule

69,7

0 &

73

For

Ban

glad

esh

mis

sion

s ab

road

for

pro

cure

men

t of

off-

the-

shel

f re

adily

ava

ilabl

e go

ds a

nd u

nfor

esee

n ph

ysic

al

serv

ices

the

thre

shol

d is

BD

T 1.

5 m

illion

in e

ach

case

. D

PM:

Dire

ct c

ontr

actin

g, V

aria

tion

orde

rs/ E

xtra

Wor

k or

ders

/Rep

eat O

rder

s ar

e D

PM; R

ule-

75.

DPM

: w

ithou

t th

resh

old:

Onl

y on

e S

uppl

ier

or C

ontra

ctor

CC

EA

m

eans

C

abin

et

Com

mitt

ee

for

Eco

nom

ic

Affa

irs

－39－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

25

F Pr

ocur

emen

t Met

hods

to

sub

mit

an o

ffer

whe

n it

is o

f (

i)pro

prie

tary

nat

ure,

(ii

)crit

ical

pl

ant

com

pone

nts

(iii)e

xclu

sive

de

aler

or

m

anuf

actu

rer,

(iv)

Gov

ernm

ent-o

wne

d in

dust

ry o

r fa

ctor

y us

ing

gove

rnm

ent

own

fund

s,(v

) S

mal

l S

cale

Lo

cal

Indu

strie

s fo

r sp

ecia

lized

pr

oduc

t an

d (v

i)not

in

terc

hang

eabl

e w

ith e

xist

ing

equi

pmen

t; R

ule-

76

DPM

: w

ith t

hres

hold

: (i)

natu

ral

disa

ster

s; B

DT

5 m

illio

n ea

ch c

ase

with

ann

ual

aggr

egat

e of

50

milli

on a

nd (

ii)

very

urg

ent;

BD

T 10

0 th

ou o

r B

DT

500

thou

in e

ach

case

w

ith a

ppro

val o

f HO

PE

. For

abo

ve th

is th

resh

old

appr

oval

of

CC

EA

req

uire

d; S

ectio

n-68

, (ii

i) di

rect

con

tract

ing

with

lo

cal c

omm

unity

for

pov

erty

alle

viat

ion

orie

nted

act

iviti

es;

Rul

e-76

. For

Ban

glad

esh

Flag

Car

riers

for p

rocu

rem

ent o

f fu

el, s

pare

s an

d em

erge

ncy

repa

ir th

e th

resh

old

is B

DT

5 m

illion

Va

riatio

n or

ders

/ Ex

tra

Wor

k or

ders

/Rep

eat

Ord

ers;

th

resh

old:

15%

of O

CP

and,

in e

xcep

tiona

l cas

e up

to

a m

axim

um 5

0% o

f OC

P In

all

case

s m

ust b

e ap

prov

ed in

APP

or

appr

oved

by

HO

PE

OC

P m

eans

Orig

inal

Con

tract

Pric

e A

PP

mea

ns A

nnua

l Pro

cure

men

t Pla

n

F3

Wha

t pro

cure

men

t/ se

lect

ion

met

hods

are

pe

rmitt

ed fo

r con

sulta

ncy

serv

ices

? P

rovi

de d

etai

ls o

f th

resh

olds

and

con

ditio

ns

for u

se

Con

sulta

ncy

ser

vice

s A

PP

to b

e ap

prov

ed o

r HO

PE

’s a

ppro

val r

equi

red

Qua

lity

& C

ost B

ased

Sel

ectio

n (Q

CB

S)

N

o th

resh

olds

; no

cond

ition

s C

onsi

der t

he q

ualit

y &

cos

t of t

he s

ervi

ces;

Rul

e-10

3 Fi

xed

Bud

get S

elec

tion

(FB

S)

Con

ditio

ns:

Ava

ilabl

e bu

dget

is

fixed

. Th

e as

sign

men

t is

re

lativ

ely

sim

ple

& c

an b

e pr

ecis

ely

defin

ed;R

ule-

103

Leas

t Cos

t Sel

ectio

n (L

CS)

C

ondi

tions

: (i)

Sta

ndar

d or

rou

tine

natu

re.

e.g.

- a

udits

, ar

chite

ctur

al &

eng

inee

ring

desi

gn o

f no

n-co

mpl

ex w

orks

w

here

est

ablis

hed

prac

tice

& s

tand

ards

(ii)

cos

t with

in th

e th

resh

old;

Rul

e-10

4

Ade

quat

ely

addr

esse

d

－40－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

26

F Pr

ocur

emen

t Met

hods

Th

resh

old:

BD

T 5

milli

on

Com

mun

ity S

ervi

ce O

rgan

izat

ion

Sele

ctio

n (C

SOS)

C

ondi

tions

: W

ell

qual

ified

to

assi

st i

n th

e pr

epar

atio

n,

man

agem

ent,

& im

plem

enta

tion

of c

omm

unity

de

velo

pmen

t pro

ject

s or

Pro

gram

s be

caus

e of

thei

r in

volv

emen

t &

kn

owle

dge

of

loca

l is

sues

, C

omm

unity

ne

eds

or p

artic

ipat

ory

appr

oach

es-R

ule-

104

&10

9

Indi

vidu

al C

onsu

ltant

Sel

ectio

n C

ondi

tions

: (i)

Qua

lifie

d in

divi

dual

exp

ert

whi

le n

o te

am

wor

k is

req

uire

d (ii

) in

som

e ca

se t

ime

thre

shol

d is

les

s th

an 6

mon

ths

Con

sulta

nts

Qua

lific

atio

n B

ased

Sel

ectio

n(C

QB

S)

Con

ditio

ns: F

ull-f

ledg

ed s

elec

tion

whe

re n

ot J

ustif

ied

Si

ngle

Sou

rce

Sele

ctio

n (S

SS)

Con

ditio

ns:

(i) w

here

rapi

d se

lect

ion

is e

ssen

tial

(ii)w

here

on

ly

one

firm

or

in

divi

dual

co

nsul

tant

ha

s ex

perie

nce

of e

xcep

tiona

l wor

th

(ii) f

or lo

w v

alue

sm

all a

ssig

nmen

ts w

ithin

thre

shol

d –

Rul

e-10

4

Th

resh

old:

BD

T 1

mill

ion

for

firm

s an

d B

DT

500,

000

for I

ndiv

idua

ls

Des

ign

Con

test

Sel

ectio

n(D

CS)

C

ondi

tions

: Tec

hnic

al e

xcel

lenc

e &

inno

vatio

n ar

e of

prim

e co

nsid

erat

ions

F4

Is

the

split

ting

of

proc

urem

ent

requ

irem

ents

to

av

oid

thre

shol

ds

proh

ibite

d?

Yes

, pr

ohib

ited

as

in R

ule-

17(1

) in

ord

er t

o ev

ade

the

high

er le

vel c

ontra

ct a

ppro

ving

aut

horit

y In

pra

ctic

e th

is is

har

dly

com

plie

d w

ith in

ord

er to

firs

t ac

com

mod

ate

high

er

num

ber

of

cont

ract

ors

and

seco

ndly

to a

void

app

rova

l of h

ighe

r aut

horit

ies

－41－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

27

F Pr

ocur

emen

t Met

hods

F5

Is

a

sim

plifi

ed

met

hod

avai

labl

e fo

r lo

w

valu

e pr

ocur

emen

t, w

ith

a cl

ear

thre

shol

d?

No

othe

r met

hod

avai

labl

e as

dis

cuss

ed in

F2

Sim

plifi

ed S

BD

s fo

r so

me

dire

ct p

rocu

rem

ent

of lo

w

valu

e m

ay b

e us

eful

F6

Is

sing

le

sour

ce

proc

urem

ent

limite

d to

sp

ecifi

ed,

just

ified

ci

rcum

stan

ces?

DP

M fo

r go

ods

and

wor

ks a

nd S

SS

for

serv

ices

is li

mite

d to

spe

cifie

d ci

rcum

stan

ces

as d

iscu

ssed

in F

2 in

Rul

e-11

0 re

spec

tivel

y

Rec

ently

som

e G

ovt

agen

cy o

r en

terp

rise

purs

uing

fo

r allo

tting

pro

cure

men

t to

them

dire

ctly

.

G

Bid

ding

Pr

oces

s fo

r G

oods

, W

orks

an

d N

on-

Con

sulta

ncy

Serv

ices

G1

Are

ag

enci

es

requ

ired

to

adve

rtise

pr

ocur

emen

t op

portu

nitie

s w

idel

y,

whe

ther

na

tiona

lly

or

inte

rnat

iona

lly?

Yes

in

acco

rdan

ce w

ith R

ule-

90.

Nat

iona

lly f

or n

atio

nal

proc

urem

ent

and

inte

rnat

iona

lly

for

inte

rnat

iona

l pr

ocur

emen

t. E

xcep

tion

for

RFQ

M a

nd L

imite

d Te

nder

M

etho

d

LTM

w

ith

thre

shol

d of

B

DT

20

milli

on

and

DP

M/S

SS

Man

y In

vita

tion

for

Bid

s (IF

Bs)

are

faul

ty.

Not

in

co

mpl

ianc

e w

ith th

e R

ules

G2

Is u

se o

f re

stric

ted

bidd

ing

limite

d to

spe

cifie

d, ju

stifi

ed

circ

umst

ance

s?

Res

trict

ed

bidd

ing

is

LTM

an

d of

co

urse

, lim

ited

to

spec

ified

an

d ju

stifi

ed

circ

umst

ance

s de

scrib

ed

in

F2

unde

r LTM

Use

of

LTM

is

mor

e po

pula

r at

the

loc

al G

ovt

leve

l be

caus

e of

pol

itica

l and

soc

ial r

easo

ns.

G3

Is p

re-q

ualif

icat

ion

perm

itted

or

re

quire

d fo

r la

rge

or

com

plex

con

tract

s?

Pre

-qua

lific

atio

n is

not

man

dato

ry b

ut m

ay b

e re

quire

d or

pe

rmitt

ed w

ith a

ppro

val o

f HO

PE

for l

arge

and

com

plex

(i)

Con

stru

ctio

n W

orks

ab

ove

BD

T.

350

milli

on,

(ii)

Mai

nten

ance

Wor

ks a

bove

BD

T. 3

5 m

illion

(iii)

Sup

ply

and

inst

alla

tion

of P

lant

and

Equ

ipm

ent a

bove

BD

T150

milli

on

(iv)D

esig

n an

d B

uild

Infra

stru

ctur

e ab

ove

BD

T 35

0 m

illion

(iv

) C

usto

m D

esig

ned

Equ

ipm

ent

abov

e B

DT

35 m

illion

, an

d (v

) Man

agem

ent C

ontra

cts

abov

e B

DT

350m

illion

Pre

-qua

lific

atio

n is

OK

. In

man

y ca

ses,

frau

d is

taki

ng

plac

e.

－42－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

28

G

Bid

ding

Pr

oces

s fo

r G

oods

, W

orks

an

d N

on-

Con

sulta

ncy

Serv

ices

G4

Are

ag

enci

es

requ

ired

to

use

qual

ifica

tion

crite

ria

rela

ted

to t

he c

ontra

ct a

nd

to

disc

lose

th

ese

to

appl

ican

ts?

Yes

as

deta

iled

in R

ule-

47 &

Rul

e-48

and

in

the

SB

Ds

thos

e m

ust b

e pr

e-di

sclo

sed.

W

orki

ng w

ell e

xcep

t whe

re th

e ag

enci

es a

re b

iase

d to

a

parti

cula

r pro

spec

tive

Bid

der i

n te

rms

of d

raw

ing

the

qual

ifica

tion

crite

ria.

G5

Are

all

qual

ified

firm

s in

vite

d to

bid

? In

cas

e of

pro

cure

men

t with

a p

re-q

ualif

icat

ion

proc

ess

as

disc

usse

d in

G3,

onl

y th

e pr

e-qu

alifi

ed fi

rms

are

invi

ted

to

bid

as in

Rul

e-93

(15)

No

prob

lem

G6

Are

obj

ectiv

e sp

ecifi

catio

ns

or

othe

r te

chni

cal

docu

men

ts

requ

ired

to

clea

rly d

escr

ibe

the

subj

ect

of p

rocu

rem

ent?

Tech

nica

l sp

ecifi

catio

ns

of

good

s an

d w

orks

to

be

pr

ocur

ed a

re r

equi

red

and

cont

aine

d in

det

ails

in

SB

Ds;

ev

en w

ith d

esig

n an

d dr

awin

gs in

man

y ca

ses.

Age

ncie

s ar

e no

t ad

equa

tely

ski

lled

to p

repa

re t

he

tech

nica

l spe

cific

atio

ns

G7

Are

st

anda

rds

requ

ired

to

be u

sed,

whe

ther

nat

iona

l or

inte

rnat

iona

l?

The

tech

nica

l sp

ecifi

catio

ns f

or p

rocu

rem

ent

of g

oods

, w

orks

and

ser

vice

are

dra

wn

on t

he s

tand

ards

app

rove

d or

pu

blis

hed

by

Inte

rnat

iona

l O

rgan

izat

ion

for

Sta

ndar

diza

tion

(ISO

), an

d B

angl

ades

h S

tand

ard

and

Test

ing

Inst

itute

(B

STI

) or

an

y ot

her

natio

nal

or

inte

rnat

iona

l in

stitu

te.

For

inte

rnat

iona

l pr

ocur

emen

t, in

pa

rticu

lar,

the

tech

nica

l sp

ecifi

catio

ns

are

base

d on

in

tern

atio

nal

stan

dard

s or

th

ose

wid

ely

used

in

in

tern

atio

nal

trade

an

d su

ch

stan

dard

s ne

ed

to

be

com

patib

le w

ith t

hose

in

use

in B

angl

ades

h; k

eepi

ng i

n re

leva

nce

with

in

ter-s

tate

tra

de

rela

tions

an

d,

treat

ies

ratif

ied

by th

e go

vern

men

t; R

ule-

29

Age

ncie

s ar

e m

ore

incl

ined

to

use

of i

nter

natio

nal

stan

dard

s th

at h

as p

ast

repu

tatio

n an

d re

liabi

lity

in

thei

r exp

erie

nce

－43－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

29

G

Bid

ding

Pr

oces

s fo

r G

oods

, W

orks

an

d N

on-

Con

sulta

ncy

Serv

ices

G8

Do

tem

plat

es

for

bidd

ing

docu

men

ts:

Con

tain

cle

ar in

stru

ctio

ns

on th

e bi

ddin

g pr

oces

s?

disc

lose

the

eval

uatio

n cr

iteria

and

met

hodo

logy

? co

ntai

n dr

aft c

ontra

cts

whi

ch a

re fa

ir an

d pr

ovid

e ad

equa

te p

rote

ctio

n fo

r the

ag

ency

?

SB

Ds

are

issu

ed b

y C

PTU

and

use

d P

E d

uly

cust

omis

ed

for s

peci

fic p

rocu

rem

ent

o co

ntai

ns in

stru

ctio

n to

bid

der a

s to

the

proc

ess

of

prep

arat

ion,

sub

mis

sion

, and

ope

ning

o

cont

ains

det

ail e

valu

atio

n cr

iteria

and

met

hodo

logy

up

to th

e aw

ard

of c

ontra

ct a

s us

ual

o co

ntai

ns d

raft

cont

ract

s al

ong

with

dra

ft N

otic

e of

A

war

d (N

OA

) and

oth

er d

ocum

ents

tem

plat

e R

ule-

4

SB

Ds

are

of in

tern

atio

nal s

tand

ards

G9

Are

fe

es

for

bidd

ing

docu

men

ts l

imite

d to

cos

ts

for c

opyi

ng a

nd d

espa

tch?

Fees

/Pric

es f

or S

BD

s ar

e fix

ed b

y th

e P

E b

ased

on

re-

prod

uctio

n an

d di

spat

ch c

osts

as

in R

ule-

94(4

) In

cons

iste

ncie

s pr

evai

l bet

wee

n ag

ency

to a

genc

y on

pr

ice

rang

ing

from

BD

T 50

0 to

BD

T 10

00

G10

A

re

agen

cies

re

quire

d to

gi

ve

a cl

ear

bidd

ing

dead

line,

kee

p bi

ds s

ecur

ely

and

reje

ct la

te b

ids?

Bid

Sub

mis

sion

dea

dlin

es a

re m

entio

ned

in S

BD

s cl

early

. B

ids

are

kept

in

safe

cus

tody

of

PE

afte

r re

ceip

t fo

r no

t m

ore

than

48

hour

s an

d th

en f

orw

arde

d to

eva

luat

ion

com

mitt

ee.

Late

Bid

s ar

e re

ject

ed n

ot a

t th

e tim

e of

su

bmis

sion

or a

t the

tim

e of

ope

ning

Bid

, but

late

r to

avoi

d ha

ssle

.

G11

A

re

min

imum

bi

ddin

g pe

riods

spe

cifie

d?

Min

imum

B

iddi

ng

perio

ds

are

proc

urem

ent

met

hods

sp

ecifi

c an

d th

ose

are

spec

ified

in th

e S

BD

s C

ompl

ianc

e ad

equa

te

G12

A

re b

id s

ecur

ities

req

uire

d?

If so

, giv

e de

tails

of r

ules

. B

id

Sec

uriti

es

are

requ

ired.

Th

is

also

de

pend

s on

pr

ocur

emen

t met

hods

and

thre

shol

ds.

Age

ncie

s av

oid

Ban

k G

uara

ntee

in

fe

w

case

s be

caus

e of

frau

dule

nt d

ocum

enta

tion

by

the

Bid

ders

G

13

Are

pu

blic

bi

d op

enin

gs

requ

ired?

P

ublic

ope

ning

s ar

e m

anda

tory

with

exc

eptio

n fo

r R

FQM

, D

PM

/SS

S, a

nd T

echn

ical

pro

posa

l, w

here

app

ropr

iate

, for

se

rvic

es (n

on-c

onsu

ltanc

y)

Com

plie

d w

ith a

dequ

atel

y

G14

Is

eva

luat

ion

base

d on

the

cr

iteria

in

th

e bi

ddin

g do

cum

ent?

Exc

lusi

vely

ba

sed

on

the

pre-

disc

lose

d cr

iteria

in

th

e bi

ddin

g do

cum

ent

This

is O

K

－44－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

30

G

Bid

ding

Pr

oces

s fo

r G

oods

, W

orks

an

d N

on-

Con

sulta

ncy

Serv

ices

G15

Is

aw

ard

to

the

low

est

eval

uate

d re

spon

sive

bid

? In

any

cas

e to

the

low

est

resp

onsi

ve B

id.

Eve

n if

that

is

front

-end

-load

ed o

r un

reas

onab

ly b

elow

the

Eng

inee

rs

offic

ial

estim

ated

co

st

with

hi

gher

pe

rcen

tage

of

P

erfo

rman

ce S

ecur

ity (2

5% o

f the

eva

luat

ed b

id p

rice)

Low

est

eval

uate

d is

O

K.

But

th

e re

spon

sive

ness

so

met

imes

bec

omes

a q

uest

ion.

G16

A

re n

egot

iatio

ns p

rohi

bite

d?

No

nego

tiatio

ns

perm

issi

ble

for

good

s an

d w

orks

, in

ge

nera

l. B

ut P

E m

ay e

ngag

e in

con

vers

atio

n w

ith t

he

low

est

resp

onsi

ve

bidd

er

whe

n th

ere

is

a bu

dget

co

nstra

int

com

pare

d to

ver

y hi

gh b

id p

rice

in o

rder

to

redu

ce th

e bi

d pr

ice

by r

eallo

catio

n of

res

pons

ibilit

ies

and

oblig

atio

ns;

subj

ect

to t

he c

ondi

tion

that

low

est

rem

ains

lo

wes

t in

any

cas

e. T

he b

idde

r if

refu

ses

to a

ccep

t/agr

ee

no p

enal

ty c

an b

e im

pose

d. S

uch

conv

ersa

tion

cann

ot b

e he

ld w

ith b

idde

rs o

ther

than

the

low

est r

espo

nsiv

e bi

dder

.

In c

ompl

ianc

e

H

Proc

urem

ent

Proc

ess

for

Con

sulta

ncy

Serv

ices

H1

Are

TO

R

requ

ired

whi

ch

clea

rly d

escr

ibe

obje

ctiv

es,

task

s an

d ou

tput

s of

th

e as

sign

men

t?

PP

R 1

08 (3

) (S

BC

Q) a

nd P

PR

111

(4) D

esig

n C

onte

st D

C

requ

ire

TOR

s.

With

se

lect

ion

of

indi

vidu

al

cons

ulta

nts

(SIC

) P

PR

112

con

sulta

nts

mus

t de

mon

stra

te i

n th

eir

qual

ifica

tions

and

exp

erie

nce

in th

eir E

OI

Low

leve

l ski

lls in

fram

ing

TOR

with

in a

genc

ies

H2

Are

ag

enci

es

requ

ired

to

adve

rtise

pr

ocur

emen

t op

portu

nitie

s w

idel

y,

whe

ther

na

tiona

lly

or

inte

rnat

iona

lly?

PP

R 1

03 (

3) T

he P

rocu

ring

Ent

ity s

hall

enco

urag

e th

e in

volv

emen

t of n

atio

nal C

onsu

ltant

s in

assi

gnm

ents

with

inte

rnat

iona

l com

petit

ion

This

is O

K

H3

Is

shor

tlist

ing

base

d on

ob

ject

ive

eval

uatio

n of

EO

Is

or

othe

r ap

prop

riate

so

urce

s?

Two

pref

erre

d m

etho

ds o

f co

nsul

tant

sel

ectio

n ar

e P

PR

10

3 (4

) Q

CB

S o

r Fi

xed

Bud

get

Sel

ectio

n (F

BS

) (fi

xed

Bud

get f

or s

impl

er a

ssig

nmen

ts)

Gen

eral

ly u

nder

stoo

d by

age

ncie

s

－45－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

31

H

Proc

urem

ent

Proc

ess

for

Con

sulta

ncy

Serv

ices

H4

Do

tem

plat

es

for

RFP

do

cum

ents

: co

ntai

n cl

ear i

nstru

ctio

ns

on th

e bi

ddin

g pr

oces

s?

disc

lose

the

eval

uatio

n cr

iteria

, wei

ghtin

g,

met

hodo

logy

and

any

m

inim

um th

resh

olds

? co

ntai

n dr

aft c

ontra

cts

whi

ch a

re fa

ir an

d pr

ovid

e ad

equa

te p

rote

ctio

n fo

r the

ag

ency

?

SR

FPs

are

issu

ed

by

CP

TU

and

used

by

P

E

duly

cu

stom

ised

for s

peci

fic p

rocu

rem

ent

o LO

I con

tain

ing

nam

e of

Clie

nt, s

ourc

e of

fund

s,

brie

f des

crip

tion

of o

bjec

tives

and

sco

pe o

f as

sign

men

t, na

mes

of s

hort-

liste

d fir

ms,

met

hod

of

sele

ctio

n, d

ate,

tim

e &

add

ress

of p

re-p

ropo

sal

mee

ting,

if re

quire

d, e

tc

o co

ntai

ns in

stru

ctio

n to

App

lican

ts a

s to

the

proc

ess

of p

repa

ratio

n, s

ubm

issi

on, a

nd o

peni

ng

o co

ntai

ns d

etai

l eva

luat

ion

crite

ria(a

lloca

ted

poin

ts,

scor

ing

and

pass

/fail)

and

met

hodo

logy

up

to th

e aw

ard

of c

ontra

ct a

s us

ual

o co

ntai

ns d

raft

cont

ract

s al

ong

with

oth

er

docu

men

ts te

mpl

ate

whi

ch a

re fa

ir an

d ad

equa

te

o S

peci

fied

Form

s fo

r Tec

hnic

al a

nd F

inan

cial

pr

opos

als

used

R

ule-

117

This

is O

K

H5

Are

ag

enci

es

requ

ired

to

give

a

clea

r bi

ddin

g de

adlin

e,

keep

pr

opos

als

secu

rely

an

d re

ject

la

te

prop

osal

s?

Pro

posa

l S

ubm

issi

on d

eadl

ines

are

men

tione

d in

RFP

s cl

early

. Te

chni

cal

prop

osal

s ar

e ke

pt i

n sa

fe c

usto

dy o

f C

lient

afte

r ope

ning

by

Ope

ning

Com

mitt

ee a

nd re

ceip

t for

no

t mor

e th

an 4

8 ho

urs

and

then

forw

arde

d to

eva

luat

ion

com

mitt

ee. L

ATE

pro

posa

ls a

re re

ject

ed n

ot a

t the

tim

e of

su

bmis

sion

or a

t the

tim

e of

ope

ning

pro

posa

l, bu

t lat

er to

av

oid

hass

le.

Fina

ncia

l pr

opos

als

are

sent

to

HO

PE

or

AO

’s

safe

cu

stod

y un

til

the

Tech

nica

l pr

opos

als

are

appr

oved

by

HO

PE

.

This

is O

K

H6

Are

m

inim

um

bidd

ing

perio

ds s

peci

fied?

M

inim

um B

iddi

ng p

erio

ds a

re p

rocu

rem

ent

type

sp

ecifi

c (n

atio

nal

or i

nter

natio

nal)

and

thos

e ar

e sp

ecifi

ed i

n th

e R

FPs.

S

impl

y 28

da

ys

for

natio

nal

and

42

days

fo

r in

tern

atio

nal.

Rul

e-11

7

This

is O

K

－46－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

32

H

Proc

urem

ent

Proc

ess

for

Con

sulta

ncy

Serv

ices

H7

Are

pu

blic

bi

d op

enin

gs

requ

ired

for

tech

nica

l and

/or

finan

cial

pr

opos

als,

w

ith

adeq

uate

no

tific

atio

n fo

r fin

anci

al o

peni

ngs?

No

publ

ic

open

ing

requ

ired

for

open

ing

of

Tech

nica

l pr

opos

als

but o

f cou

rse,

for

Fina

ncia

l pro

posa

ls w

ith o

nly

thos

e A

pplic

ants

who

sec

ure

the

min

imum

pas

s m

arks

al

low

ing

at

leas

t on

e w

eek

from

su

ch

notif

icat

ion

for

open

ing;

Rul

e-12

0

This

is O

K

H8

Is

tech

nica

l ev

alua

tion

base

d on

th

e cr

iteria

an

d w

eigh

tings

in

th

e R

FP

docu

men

t, w

ith a

min

imum

qu

ality

thre

shol

d?

Tech

nica

l eva

luat

ion

is b

ased

on

grad

ing

(poo

r/goo

d/ve

ry

good

/exc

elle

nt)

conv

ertin

g in

to r

atin

g (4

0/70

/90/

100

per

cent

res

pect

ivel

y) a

gain

st e

ach

crite

ria /s

ub-c

riter

ia w

ith a

m

inim

um t

hres

hold

of

PA

SS

MA

RK

S a

s in

H7

abov

e;

Rul

e- 1

17(2

4))

Gen

eral

ly lo

w le

vel o

f ski

lls in

eva

luat

ion.

H9

Are

ag

enci

es

requ

ired

to

keep

fin

anci

al

bids

se

aled

un

til

the

time

for

finan

cial

op

enin

g an

d ev

alua

tion?

To b

e ke

pt s

eale

d an

d sa

fe in

the

cust

ody

as in

H5

This

is O

K

－47－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

33

H

Proc

urem

ent

Proc

ess

for

Con

sulta

ncy

Serv

ices

H10

Is

fin

anci

al e

valu

atio

n an

d ra

nkin

g of

pro

posa

ls b

ased

on

th

e m

etho

dolo

gy

and

wei

ghtin

gs in

the

RFP

?

Ran

king

bas

ed o

n th

e m

etho

dolo

gy a

nd w

eigh

tings

ver

y m

uch

corre

spon

ds t

o P

rocu

rem

ent

Met

hods

use

d. F

or

inst

ance

as

follo

ws:

Q

ualit

y an

d C

ost B

ased

Sel

ectio

n Q

CB

S: T

he te

chni

cal

scor

e pl

us

the

finan

cial

sc

ore

(usi

ng

the

wei

ghtin

gs

spec

ified

in

RFP

s) g

ives

the

com

bine

d sc

ore

appl

ied

for

rank

ing

and

the

Con

sulta

nt w

ith t

he h

ighe

st c

ombi

ned

scor

e is

invi

ted

for n

egot

iatio

ns

Rul

e-12

1 Fi

xed

Bud

get

Sele

ctio

n:

Hig

hest

ra

nked

Te

chni

cal

Pro

posa

l w

ithin

th

e bu

dget

is

fo

und

on

the

basi

s of

Te

chni

cal

poin

ts (

belo

w 7

0 co

nsid

ered

non

-resp

onsi

ve)

secu

red

by th

e bi

dder

s. W

eigh

tings

not

requ

ired.

Lo

wes

t Cos

t Sel

ectio

n: L

owes

t eva

luat

ed P

ropo

sal P

rice

amon

g th

ose

that

sec

ured

the

min

imum

Tec

hnic

al p

oint

s (i.

e. p

ass

mar

k of

70)

. Wei

ghtin

gs n

ot re

quire

d.

Sing

le S

ourc

e Se

lect

ion

SSS:

Stra

ight

to n

egot

iatio

n on

Te

chni

cal

and

Fina

ncia

l as

pect

s of

the

Pro

posa

l as

a

who

le

Rul

e-11

9 an

d R

ule-

120

Gen

eral

ly lo

w le

vels

of s

kills

in e

valu

atio

n.

H11

Is

aw

ard

to

the

high

est

rank

ed p

ropo

sal,

acco

rdin

g to

th

e m

etho

dolo

gy

spec

ified

in th

e R

FP?

Not

rea

lly t

he a

war

d is

for

thw

ith m

ade

to t

he h

ighe

st

rank

ed p

ropo

sal,

acco

rdin

g to

the

met

hodo

logy

spe

cifie

d in

the

RFP

(in

cas

e of

LC

S lo

wes

t ev

alua

ted

prop

osal

pr

ice

secu

ring

the

min

imum

Te

chni

cal

poin

ts

as

disc

usse

d in

H

10).

Rat

her

sele

cted

fo

r in

vita

tion

for

nego

tiatio

ns o

n th

e P

ropo

sal.

Neg

otia

tion

skills

are

inad

equa

te. M

ore

is b

arga

inin

g.

Gen

eral

des

i re

of th

e C

lient

s to

dom

inat

e ne

gotia

tions

.

－48－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

34

H

Proc

urem

ent

Proc

ess

for

Con

sulta

ncy

Serv

ices

H12

A

re n

egot

iatio

ns l

imite

d to

th

e fir

st

rank

ed

cons

ulta

nt

and

to a

reas

oth

er t

han

fee

rate

s?

Neg

otia

tions

is n

ot li

mite

d to

firs

t ran

ked

cons

ulta

nt r

athe

r to

beg

in,

it is

sta

rted

with

firs

t ra

nked

con

sulta

nt a

nd o

n fa

ilure

, is

cont

inue

d su

cces

sive

ly w

ith th

e se

cond

and

the

third

ran

ked

cons

ulta

nts

subj

ect

to b

udge

tary

con

stra

ints

an

d fu

lfilm

ent o

f oth

er c

ondi

tions

. A

reas

of n

egot

iatio

ns, o

ther

than

fees

, are

spe

cific

viz

.

Met

hodo

logy

Wor

k pl

an a

nd a

ctiv

ity s

ched

ule

O

rgan

izat

ion

and

staf

fing

D

eliv

erab

les

Tr

aini

ng in

puts

, if t

rain

ing

is a

maj

or c

ompo

nent

Clie

nt o

r PE

’s in

puts

Pro

pose

d co

ntra

ct p

rice

And

als

o R

eim

burs

able

in c

ase

of T

ime-

base

d C

ontra

cts

Rul

e-12

2 (3

)

As

abov

e

I C

ontr

act

Aw

ard

and

Man

agem

ent

I1

Is

any

notif

icat

ion

to

unsu

cces

sful

bi

dder

s an

d st

ands

till

perio

d re

quire

d pr

ior t

o aw

ard?

Not

ifica

tion

to u

nsuc

cess

ful b

idde

rs re

quire

d fo

r a p

oten

tial

debr

iefin

g; n

ot fo

r sta

ndst

ill pr

ior t

o aw

ard

of a

con

tract

.

Mor

e ap

pare

nt in

larg

e va

lue

cont

ract

s

I2

Is

the

agen

cy

requ

ired

to

debr

ief

unsu

cces

sful

bi

dder

s an

d pu

blis

h de

tails

of

the

cont

ract

aw

ard?

Deb

riefin

g un

succ

essf

ul

bidd

ers

requ

ired

only

up

on

requ

est f

rom

the

bidd

er(s

) fo

r di

sclo

sing

the

grou

nds

only

no

t th

e re

ason

s.

Det

ails

of

th

e co

ntra

ct

awar

d ar

e pu

blis

hed

in s

peci

fied

form

at i

n C

PTU

’s w

ebsi

te a

bove

sp

ecifi

ed

thre

shol

ds a

nd o

f be

low

in

PE

/Clie

nt’s

ow

n w

ebsi

te o

r oth

er p

ublic

pla

ces

like

Not

ice

Boa

rds

As

abov

e

－49－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

35

I C

ontr

act

Aw

ard

and

Man

agem

ent

I3

Wha

t pr

oced

ures

an

d co

ntro

ls

appl

y to

co

ntra

ct

amen

dmen

ts

and

varia

tions

?

Con

tract

am

endm

ents

are

lin

ked

to a

ny c

hang

es i

n th

e or

igin

al t

erm

s of

the

con

tract

inc

ludi

ng V

aria

tions

/ E

xtra

W

ork

Ord

ers/

Add

l. D

eliv

erie

s/

Rep

eat

Ord

ers/

M

odifi

catio

ns/T

ime

Ext

ensi

ons

etc.

A

men

dmen

ts

to

cont

ract

s ar

e m

ade

by

the

cont

ract

ing

parti

es

inco

rpor

atin

g th

e ch

ange

s; p

rovi

ded

that

the

chan

ges

are

appr

oved

by

the

com

pete

nt a

utho

rity

whi

ch is

det

erm

ined

by

the

Del

egat

ion

of A

dmin

istra

tive

Aut

horit

y an

d Fi

nanc

ial

Pow

er.

Ver

y st

rictly

follo

wed

I4

Wha

t di

sput

e re

solu

tion

proc

edur

es a

re i

nclu

ded

in

cont

ract

s?

Effo

rts f

or r

esol

utio

n of

dis

pute

s ar

e in

itial

ly t

aken

up

by

cont

ract

ing

parti

es a

mic

ably

. O

n fa

ilure

by

adju

dica

tion

and,

the

n ag

ain

on f

ailu

re b

y ar

bitra

tion

for

med

ium

and

la

rge

cont

ract

s. F

or s

mal

l val

ue c

ontra

cts

(BD

T 2.

5 m

illio

n fo

r G

oods

and

BD

T 20

milli

on f

or W

orks

and

bel

ow a

nd,

proc

urem

ent u

nder

RFQ

M),

this

is n

ot e

mph

asiz

ed.

Dis

pute

s of

lo

w

mag

nitu

des

are

amic

ably

se

ttled

be

twee

n th

e co

ntra

ctin

g pa

rties

. O

n fa

ilure

th

e di

sput

es a

re h

andl

ed b

y an

Adj

udic

ator

. A

rbitr

atio

ns

are

carri

ed

out

unde

r A

rbitr

atio

n A

ct,

2001

of

B

angl

ades

h.

In i

nter

natio

nal

proc

urem

ent,

how

ever

the

se i

ssue

s ar

e de

alt w

ith u

nder

Inte

rnat

iona

l Rul

es fo

r Arb

itrat

ion

such

as

U

nite

d N

atio

ns

Com

mis

sion

on

In

tern

atio

nal

Trad

e La

w (

UN

CIT

RA

L) A

rbitr

atio

n R

ules

of

1976

or

the

Rul

es o

f C

onci

liatio

n an

d A

rbitr

atio

n of

th

e In

tern

atio

nal

Cha

mbe

r of

C

omm

erce

. EA

’s a

re n

ot v

ery

skill

ed t

o ha

ndle

su

ch d

ispu

tes.

The

rul

es a

re e

xplic

it bu

t bec

ause

of

the

lack

of

skill

s of

the

Pro

curin

g E

ntity

the

dis

pute

re

solu

tion

proc

edur

es a

re n

ot a

lway

s be

ing

right

ly

hand

led.

－50－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

36

J R

ecor

d K

eepi

ng

and

Com

mun

icat

ions

J1

Is

the

agen

cy

requ

ired

to

mai

ntai

n re

cord

s of

pr

ocur

emen

t act

iviti

es?

Giv

e de

tails

of

th

e co

nten

ts

requ

ired

43(1

) R

ecor

ds

of

Proc

urem

ent

to

be

Mai

ntai

ned

by

a Pr

ocur

ing

Entit

y • F

or a

min

imum

per

iod

of fi

ve (5

) yea

rs

• Lo

nger

tha

n fiv

e (5

) ye

ars

in s

peci

al c

ases

with

the

ap

prov

al o

f the

Hea

d of

Pro

curin

g E

ntity

or

an a

utho

rized

of

ficer

Ver

y ha

zard

ous

in m

aint

aini

ng r

ecor

ds.

Trad

ition

al

met

hods

of

filin

g ar

e us

ed.

IT f

acilit

ies

are

very

less

us

ed b

ecau

se o

f co

nven

tiona

l pr

actic

e an

d sh

ort

of

skills

.

J2

Are

co

mm

unic

atio

ns

with

bi

dder

s an

d su

pplie

rs

requ

ired

to b

e in

writ

ing

or

conf

irmed

in w

ritin

g?

Yes

in c

omm

unic

atio

ns w

ith b

idde

rs/s

uppl

iers

is t

o be

in

writ

ing

whe

re w

ritin

g m

eans

“co

mm

unic

atio

n w

ritte

n by

ha

nd

or

mac

hine

du

ly

sign

ed

and

incl

udes

pr

oper

ly

auth

entic

ated

mes

sage

s by

facs

imile

or e

lect

roni

c m

ail”.

This

is O

K

J3

Mus

t co

mm

unic

atio

ns s

uch

as b

id c

larif

icat

ions

and

pre

-bi

d m

eetin

g m

inut

es b

e se

nt

to a

ll bi

dder

s?

Yes

com

mun

icat

ions

rel

atin

g to

the

cla

rific

atio

ns o

n th

e qu

estio

ns ra

ised

by

the

bidd

ers

mus

t be

sent

to a

ll bi

dder

s w

ithou

t dis

clos

ing

its s

ourc

e. M

inut

es o

f pre

-bid

mee

ting

is

sent

to

all

pros

pect

ive

bidd

ers

who

hav

e pu

rcha

sed

or

have

bee

n is

sued

with

the

bidd

ing

docu

men

ts o

nly.

This

is O

K

K

Bid

der C

ompl

aint

s

K

1 Is

th

ere

any

mec

hani

sm

enab

ling

bidd

ers

to

chal

leng

e pr

ocur

emen

t de

cisi

ons?

A

nd

to

appe

al

the

resp

onse

?

Any

Per

son

(not

nec

essa

rily

yet

the

bidd

ers)

and

bid

ders

ca

n ch

alle

nge

or lo

dge

com

plai

nt o

n th

e gr

ound

s sp

ecifi

ed

durin

g th

e bi

ddin

g pr

oces

s (s

tarti

ng f

rom

IFB

) un

til a

ny

proc

urem

ent

deci

sion

. S

uch

com

plai

nts

are

first

res

olve

d by

3-ti

er A

dmin

istra

tive

Aut

horit

y. I

f no

t re

solv

ed o

r th

e co

mpl

aina

nt is

not

sat

isfie

d w

ith t

he r

esol

utio

n th

en t

here

is

opp

ortu

nity

for

him

/her

to

appe

al t

o th

e R

evie

w P

anel

co

nstit

uted

of

non-

govt

offi

cial

s,

by t

he g

over

nmen

t. A

ll th

ese

are

subj

ect t

o sp

ecifi

ed ti

mef

ram

e.

Rul

e-56

,57

and

58

Som

etim

es ig

nore

d ot

herw

ise

OK

－51－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

37

K

Bid

der C

ompl

aint

s

K

2 A

re c

ompl

aint

s an

d ap

peal

s he

ard

by

an

inde

pend

ent

body

?

Com

plai

nts

and

App

eals

are

sep

arat

ed o

ut.

Com

plai

nts

are

reso

lved

by

the

Adm

inis

trativ

e A

utho

rity

of t

he P

E

(PD

/HO

PE

/SE

CR

ETA

RY

of t

he M

inis

try in

seq

uenc

e) a

nd

App

eals

are

hea

rd b

y R

evie

w P

anel

s (m

ore

than

one

) by

ro

tatio

n. R

evie

w P

anel

s ar

e in

depe

nden

t bo

dy a

s sa

id in

K

1 ab

ove.

This

is O

K

K3

Doe

s an

y co

mpl

aint

s m

echa

nism

fo

llow

ap

prop

riate

pr

oced

ures

in

te

rms

of

times

cale

s,

docu

men

tatio

n re

quire

men

ts e

tc?

Com

plai

nts

and

App

eals

bo

th

follo

w

the

appr

opria

te

proc

edur

es a

nd t

imef

ram

e an

d do

cum

enta

tion.

In

real

ity,

how

ever

, th

e A

dmin

istra

tive

Aut

horit

y ha

s a

little

bit

of

apat

hy.

This

is O

K

L Pr

even

tion

of C

orru

ptio

n

L1

Is

the

re a

cle

ar p

olic

y an

d ru

les

proh

ibiti

ng c

orru

pt a

nd

fraud

ulen

t pra

ctic

es?

Cla

use

64 i

n P

PA

re

Pro

fess

iona

l M

isco

nduc

t re

fers

to

Cod

e of

Eth

ics

(che

ck th

is).

To b

e sh

ort t

his

is O

K

Ant

i co

rrupt

ion

com

mis

sion

in

B

angl

ades

h.

Als

o en

dors

ed A

DB

/ O

EC

D A

nti

Cor

rupt

ion

Act

ion

Pla

n.

Che

ck th

is in

pra

ctic

e?

L2

Is th

ere

a pr

ocur

emen

t cod

e of

co

nduc

t or

ot

her

rule

s co

verin

g ar

eas

such

as

gi

fts,

hosp

italit

y an

d co

nflic

ts o

f int

eres

t?

Ther

e is

Cod

e of

Con

duct

for

proc

urem

ent i

n sp

ecifi

c. B

ut

as

said

in

L1

G

over

nmen

t S

erva

nts

(Dis

cipl

ine

and

App

eal)

Rul

es,

1985

is

ap

plic

able

fo

r m

isco

nduc

t or

co

rrupt

ion

in p

rocu

rem

ent p

roce

edin

gs.

Enf

orce

men

t is

not e

noug

h

M

Oth

er In

form

atio

n

M

1 N

ote

any

othe

r in

form

atio

n of

rel

evan

ce c

once

rnin

g th

e pr

ocur

emen

t sy

stem

e.

g.

use

of e

-pro

cure

men

t

128.

E-G

over

nmen

t Pr

ocur

emen

t. (1

) Fo

r ca

rryin

g ou

t th

e pu

rpos

es

of

the

Act

, an

y or

al

l go

vern

men

t pr

ocur

emen

t m

ay

be

unde

rtake

n us

ing

elec

troni

c pr

oces

sing

sys

tem

s fo

llow

ing

the

prin

cipl

es g

over

ning

e-

GP

as

pres

crib

ed b

y th

e G

over

nmen

t.

Pre

sent

ly,

e-Te

nder

ing

Sys

tem

is

laun

ched

on

pilo

t ba

sis

and

even

tual

ly w

ill be

rol

led

out

to a

ll th

e 30

8 pr

ocur

ing

entit

ies

of

afor

emen

tione

d 4

sect

oral

ag

enci

es (

5 in

clud

ing

CP

TU).

All

the

stak

ehol

ders

, in

clud

ing

Bid

ders

(n

atio

nal

and

inte

rnat

iona

l),

Pro

curin

g E

ntiti

es, P

rocu

rem

ent R

elat

ed C

omm

ittee

s,

－52－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Ba

ngla

desh

Cr

own

Agen

ts

38

M

Oth

er In

form

atio

n

(2

) In

case

of p

rocu

rem

ent f

ollo

win

g e-

GP

, sho

uld

ther

e be

an

y co

nflic

t bet

wee

n th

e pr

ovis

ions

of t

he e

-GP

rul

es a

nd

the

prov

isio

ns o

f the

se ru

les,

then

e-G

P s

hall

prev

ail.

Pay

men

t S

ervi

ce P

rovi

ders

, D

evel

opm

ent

Par

tner

s (D

Ps)

, M

edia

, O

pera

tion,

M

aint

enan

ce

and

Man

agem

ent

Ent

ity

(OM

ME

), e-

GP

S

yste

m

Adm

inis

trato

rs, A

udito

rs a

nd G

ener

al P

ublic

will

have

ac

cess

to

e-G

P s

yste

m a

nd in

form

atio

n as

spe

cifie

d in

the

Ter

ms

and

Con

ditio

ns o

f U

se a

nd P

olic

y. T

he

e-G

P is

nas

cent

beg

inni

ng in

201

0 an

d in

ope

ratin

g in

a

very

lim

ited

scal

e.

Mor

e ef

forts

on

ca

paci

ty

build

ing

and

mot

ivat

ion

requ

ired

－53－

Crown Agents St Nicholas House St Nicholas Road Sutton Surrey SM1 1EL United Kingdom

T: +44 (0)20 8643 3311 F: +44 (0)20 8643 8232

e-mail [email protected]

www.crownagents.com

－54－

APPENDIX 2 : STUDY OF NATIONAL PROCUREMENT SYSTEM (BHUTAN)

－55－

Study of National Procurement System of Bhutan


Report September 2012


－57－

Study of National Procurement System of Bhutan Crown Agents

i

Table of Contents

List of Abbreviations (ii)

Section Page

Section 1: Introduction 1

1. Study of Procurement Systems and Capacity in South Asia 2

2. Purpose of Report 2

3. Methodology 2

Section 2: Summary of National Procurement System 3

4. Overview of Procurement System and Reforms 4

5. Legal and Institutional Framework 45.1 Legal Framework 45.2 Scope of Application 55.3 Institutional Framework 6

6. Procurement Procedures and Practices 76.1 Registration and Participation 76.2 Procurement Planning 76.3 Procurement Methods 76.4 Procurement Thresholds 86.5 Bidding Process for Goods, Works and Non-Consultancy Services 96.6 Procurement Process for Consultancy Services 106.7 Contract Award and Management 116.8 Record Keeping and Communications 11

7. Oversight and Enforcement Systems 127.1 Bidder Complaints 127.2 Prevention of Corruption 12

Section 3: Recommendations 14

8. Recommendations 158.1 Legal Framework 158.2 Institutional Framework 158.3 Capacity Development 158.4 Complaints Mechanism 16

Appendices Page

Appendix A: Completed Questionnaire on National Procurement System 17

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List of Abbreviations

CDB Construction Development Board

EA Executing Agency

EC Evaluation Committee

e-GP Electronic Government Procurement

EOI Expression of Interest

IRB Independent Review Body

JPY Japanese Yen

ODA Official Development Assistance

JICA Japan International Cooperation Agency

Nu Ngultrum (Currency)

PA Procuring Agency

PRR Procurement Rules & Regulations

PPPD Public Procurement Policy Division

RFP Request for Proposals

RGoB Royal Government of Bhutan

SBD Standard Bidding Document

TC Tender Committee

TOR Terms of Reference

This document is submitted to the named client but remains the copyright of Crown Agents. It should not be reproduced in whole or part without the express written permission of Crown Agents.

It should be noted that the BSI Symbol and UKAS Accreditation mark signify that Crown Agents operate a documented Quality Management System registered with the British Standards Institution to the international quality standard BS EN ISO 9001:2008. The provision of consultancy services in revenue enhancement and expenditure and debt management including: customs, taxation and trade, human institutional and organisational development, engineering, procurement management advice and reform, health logistics and procurement services. Third party quality assurance and inspection services related to the supply of manufactured and processed products. International freight forwarding services utilising in house sub-contract warehousing. Verification of service as follows: Air Import – Clearance UK airport; Exports – Airport of departure; Sea Imports – Clearance UK port; Sea Exports – Port of loading.

FS 33234

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2. Purpose of Report As part of the study, this report provides an overview of the national procurement system of Bhutan. It provides a general summary of the government system, based primarily on the legal and regulatory framework. Details on specific EAs can be found in separate capacity assessment reports.




This study of the national procurement system for Bhutan is based on:

The Royal Government of Bhutan Public Finance Act of Bhutan 2007

The Royal Government of Bhutan, Ministry of Finance, Finance and Accounting Manual 2009

The Royal Government of Bhutan, Ministry of Finance, Procurement Rules and Regulations (PRR) 2009

The website of the Public Procurement Policy Division (PPPD) at http://www.mof.gov.bt/index.php?deptid=12&id=67

The completed questionnaire for Bhutan is included at Appendix A. Section 2 of this report summarises the findings of the study, highlighting areas where national rules or practices differ significantly from JICA Guidelines. Section 3 provides brief recommendations for strengthening the national procurement system.

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4. Overview of Procurement System and Reforms The Royal Government of Bhutan (RGoB) in recent years has undertaken the reform of its public procurement system. In 2005, with technical assistance from the World Bank (WB) under a five year programme it modernised the legal framework through the issue of the Public Finance Act of Bhutan 2007 with procurement constituted under Section 104 of the Act. Subsequently Procurement Rules and Regulations (PRR) were issued in 2007 and updated in 2009. Procurement is governed by the PRR rather than separate public procurement legislation. Various amendments have and continue to be issued. The Public Procurement Policy Division (PPPD) was formed in 2009 as a body to monitor public procurement in Bhutan, to build procurement capacity, to develop and promulgate the PRR, the use of procurement documents and templates, liaise with donors and development partners and to conduct procurement seminars and workshops and to be a focal point for public procurement. Procurement responsibility is decentralised to each Procuring Agency (PA); although the majority of procurement expenditure takes place within central government ministries and local government entities; Dzongkhag (an administrative and judicial district) and Gewogs (a group of villages).


5.1 Legal Framework

Procurement is constituted under Section 104 paragraph (i) of the Public Finance Act of Bhutan 2007, which states “Without limiting the powers of the Ministry of Finance under Section 24, the Ministry of Finance may issues rules, manuals, directives, instructions or notifications on the specific matters as follows:

(i) procurement system which is equitable, transparent, competitive and cost-effective”. The Ministry of Finance through the PPPD frames the Rules and Regulations for Procurement to be implemented by Government Agencies. The detailed rules and regulations are stipulated in The Public Procurement Rules and Regulations, 2009 (Procurement Manual).

The role of the PPPD is to:

a. monitor the implementation of the Procurement Rules & Regulations through the collection and analysis of reports provided by the procuring agencies based on reporting formats developed by the PPPD;

b. provide annual reports to the Secretary, Ministry of Finance on the functioning of the national procurement system;

c. based on such reports, propose improvements to the Procurement Rules & Regulations and supporting regulations, guidelines and documentation;

d. develop and promulgate implementing regulations, methodologies, guidelines and documentation such as standard bidding and contract documents for the benefit of procuring agencies;

e. act as a focal point for enquiries and information regarding public procurement in Bhutan;

f. provide to procuring agencies, on request, advice and guidance on the interpretation and application of the Procurement Rules & Regulations, and supporting regulations, guidelines and documentation provided always that such advice and guidance shall not be given nor accepted as a recommendation or decision in the conduct of any specific procurement procedure;

g. carry out and/or commission studies and research on procurement, comparisons and future projections with a view to improving the procurement system;

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h. coordinate, in consultation with the relevant training organizations in the Kingdom, the development of a national capacity building strategy and encourage the professionalisation of the procurement function;

i. liaise with the relevant governmental organizations in the Kingdom to implement measures aimed at developing human resources and professionalism in procurement within the central and local government;

j. liaise and cooperate with the relevant governmental organizations in the Kingdom whose activities are connected with the implementation and/or enforcement of the procurement system;

k. coordinate and facilitate, in consultation with the relevant governmental and private organizations in the Kingdom, the policy for the use of information technology in procurement, including the establishment of a PPPD website for the dissemination of procurement related information and the creation and use of databases for the collection and analysis of procurement reports as defined in (a) above;

l. coordinate and facilitate, in consultation with the relevant governmental and private organizations in the Kingdom, the development of advanced electronic procurement mechanisms with a view to improving the efficiency of the procurement system;

m. develop and administer the review mechanism;

n. act as the central counterpart for any procurement related issues in connection with donors or foreign investors;

o. keep abreast of and disseminate as appropriate information regarding international developments in procurement and best practice which may impact on and assist in the improvement of the national procurement system;

p. provide and conduct, in collaboration with relevant governmental and private organizations in the Kingdom and outside the Kingdom, workshops, conferences and seminars aimed at improving awareness and understanding of the government’s procurement policy and practices.

Some standard bidding documents (SBDs) and standard forms have been issued by PPPD in English. These documents are largely based upon international standards.


The PRR covers all public entities with the following exemptions:

When the Government grants exemption from application of these rules in view of the basic security interests of the State or the requirements of special security measures in particular works, goods and services contracts;

When, due to some special circumstances, the Government grants exemption to the application of these rules for execution of a project funded by external assistance, and provides for adherence of some specific procurement procedure under the relevant financing agreement;

When local preference is provided for goods of Bhutanese origin;

When contracting with another agency of the government provided that the organisation is guided by the PRR;

Corporations (except municipal corporations) and Financial Institutions fully or partly owned by the Royal Government, Trust Funds, and Welfare Funds may adopt separate rules and regulations for the management of their procurements, provided such rules are within the broad principles of these rules and are approved by their respective Boards of Directors/Trustees.

There is a further exception to the application of the PRR where procurement must follow donor guidelines under a financing agreement. This is important for implementation of ODA by JICA, allowing JICA Guidelines to prevail over national law.

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Procurement is decentralised, with the chief of each Procuring Agency (PA) responsible for ensuring procurement activities are carried out and the central monitoring body, the PPPD, providing oversight.


Each PA is required to establish a Tender Committee (TC) which acts as a procurement unit or designate a unit with responsibility for procurement and contract management. There are eight different levels of Tender Committee including (Gewog, Dzongkhag, Department Field Level, Departmental, Ministerial, Autonomous Bodies, Higher Level for Autonomous Bodies and Inter-ministerial). The TC is responsible for:

ensuring that all procurements have been undertaken in accordance with the PRR;

appointing members to bid opening committees;

appointing evaluation committee (EC) members. (Members of TCs are excluded from being members of ECs);

Acting as an Award Committee by confirming the findings and recommendations of the EC

Ensuring that evaluations have been undertaken in accordance with the PRR.

Financial authority levels are applicable to each TC are currently set as follows: Tender Committee Levels Threshold for Goods Threshold for Works Gewog Level Up to Nu. 1 m* Up to Nu. 2 m Dzongkhag Level Up to Nu. 15 m Up to Nu. 30 m Field Level Up to Nu. 5 m Up to Nu. 10 m Departmental Level Up to Nu. 10 m Up to Nu. 20 m Ministerial Level Upto Nu 20 .m Upto Nu 50 . m Inter-Ministerial Above Nu. 20 m Above Nu 50 m Autonomous Body Tender Committee High Level Autonomous Body Tender Committee

Upto Nu. 20 m Upto Nu 50 m

Above Nu 20 m Above Nu 50 m

* million

EC members may be chosen from within the PA or from other departments and an EC must comprise of a minimum of three members.

Procurement units must generally obtain approvals for procurement from the chief of the PA. The chief of the PA approves bidding documents, while evaluations are approved according to value. The head of the PA has responsibility for financial management, in addition to procurement.


PPPD was established in 2007 by the Ministry of Finance as a body under the Ministry of Finance. It is primarily a reviewing and monitoring body, with functions in the following areas:

Monitoring and reporting: collecting procurement and contract implementation statistics, requiring reports from PAs and monitoring procurement


Regulatory framework: issuing guidelines, manuals and SBDs and advising PAs on their interpretation


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E-procurement: Coordinate and facilitate the development of electronic procurement systems

Donor and investor coordination: Act as the coordinating body for all procurement related interface with donors and foreign investors

This range of functions is consistent with oversight bodies worldwide and the prohibition on involvement in the procurement of other PAs avoids any conflict with its regulatory functions. However, the PPPD does not have any role in auditing or in ensuring the adherence of PAs with the PRR and does not undertake an investigative role and monitoring and reporting is dependent upon reports prepared by the PAs themselves.



The PRR contains no restrictions on participation in public procurement based on nationality. The PRR requires that a supplier/contractor database is set up by “technical bodies” in relevant sectors as determined by the government. An example of such a body is the Construction Development Board (CDB) which is the accredited authority determined by government to establish and maintain the List of Registered Contractors, Engineering Consultants, Architects and Speciality Contractors for Works. The purpose of registration is to pre-qualify bidders as it is presumed that bidders who are registered are suitably qualified to participate in public tenders.

The PRR contains no requirements for suppliers to register as a condition of participation in competitive bidding or sealed quotations procurement. However, any bidder who is not registered with the relevant authority must furnish all the appropriate documentation to confirm their capability to perform the required services, including a trade licence issued by the Ministry of Economic Affairs to operate in their field. Realistically, it is unlikely that an unregistered bidder will be able to successfully participate in public tenders.

The Ministry of Health also operates a supplier registration database for suppliers of drug and non-drug products.

Suppliers may be excluded by the registration body if they are (a) insolvent or are in receivership or bankrupt or in the process of being wound up; or have entered into an arrangement with creditors; or (b) their affairs are being administered by a court, judicial officer or by an appointed liquidator; or (c) they have suspended business; or are in any analogous situation arising from similar procedures under the laws and regulations of the country of establishment; or (d) they have been found guilty of professional misconduct by a recognised tribunal or professional body; or (e) they have not fulfilled obligations with regard to the payment of taxes, social security or other payments due in accordance with the laws of the country in which they are established or of the Kingdom of Bhutan; or (f) they are debarred from participation in public procurements by any competent authority.


There is no requirement under the PRR for PAs to undertake any form of procurement planning. The procurement process starts once the necessary budget is approved for the PAs. The procurement planning therefore is limited to budget planning and typically, for the Government funded activities, follows the twelve months fiscal year (July-June). The lack of planning has the potential to result in delayed procurement or the utilisation of emergency procurement using non-preferred procurement methods. There is no linkage to the RGoB Financial Management Information System which risks very poor forecasting


The PRR defines a range of procurement methods, with a preference for competitive bidding and various methods suitable for high and low values and for consultancy services, as well as goods, works and non-consultancy services. Thresholds are provided in the PRR and the splitting of

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requirements to avoid these thresholds is proscribed, however a PA may break up a work, supply or service assignment into separate lots or components for awarding to different contractors, suppliers or service providers.

The main permitted procurement methods for goods, works and non-consultancy services are:

Open Tender/Bidding Method, the preferred method, which may involve one or two-stage bidding, the latter for complex requirements. International bidding is pursued where the funding agency demands it or the limited capacity of the local construction industry/suppliers/consultants makes it necessary.

Limited Tender/Bidding Method, The number of bidders is limited to 3 to 5 bidders. The use of this method is allowed provided the total value is within the threshold value, there is insufficient time to use the open tender or Direct Contracting methods or where a pre-qualification procedure has been completed. All bidders must be registered with an authorised technical body as constituted by government.

Limited Enquiry Method, this method allows the PA to solicit prices from at least three domestic companies or individuals and may be used for the procurement of goods or works where the total value does not exceed the applicable threshold value or where an earlier Limited Bidding procedure less than three bids were received. Under this method bids may also be accepted from bidders who had not been invited. If this method fails to result in an award of contract the Direct Method may be utilised.

Direct Contracting Method, a quotation shall be obtained from one or more suppliers with specifications, timescales and appropriate terms and conditions. It is restricted to use in situations where procurement is for low value administration items (not exceeding Nu 0.02 million), where an earlier Limited Enquiry procedure failed to provide three bids, for rural works where no bids were received under open tender (not exceeding Nu 0.3 million), where there is only one available supplier/contractor, where spare parts are being procured for items that have already been procured, where repeat orders are being made (subject to limitations based on the percentage of the contract in relation to that of the original contract) and where extreme urgency is required. This method of procurement allows the procuring agency to negotiate prices and terms and conditions of its procurement directly.

Framework Contracting Method, this method can be used for purchasing designated supplies for a 12 month period at fixed prices. Supplies can be ordered at any time during the 12 month period. The procurement method utilised is determined by the threshold total estimated value of the goods or services. This method is mostly used for procurement of office stationery, vehicle parts, maintenance materials, etc

6.4 Procurement Thresholds

The following estimated contract values, including taxes and duties shall be used to determine the method of procurement are as follows:

Type Open Tender/Bidding Limited

Tender/Bidding Limited Enquiry

Works Above Nu.1,000,000

Above Nu.200,000 up to Nu.1,000,000

Up to Nu. 200,000

Goods & Consultancy Services

Above Nu.200,000 Above Nu.100, 000 and Up to Nu.200,000

Up to Nu.100,000

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Bidding may be with or without prequalification. Qualification criteria must be stated in bidding, prequalification or RFP documents and must relate to areas such as technical qualifications, equipment, past performance. Provisions allowing only a particular class of supplier to participate are not permitted.

Invitations to bid or prequalify must be published in daily newspapers of national circulation (or internationally for open international bidding) and on the website of the PA on national radio, TV and other mass media and on the notice board of the PA. Where pre-qualification is used, all qualified applicants must be invited to bid. However, pre-qualification seems to be used rarely for goods and services.


The bidding process may involve two types- Single Stage process or a Two Stage process depending on the complexity involved

PAs are required to prepare specifications, plans, drawings, designs or other descriptions based on relevant objective characteristics and functions. Particular brands or trademarks are only permitted where objective description is not possible and on the basis that equivalent products are also acceptable.

Standard templates are provided for bidding documents with specified content including clear descriptions of the procurement need, instructions on the bidding process, the evaluation criteria and methodology including any preferences and the terms and conditions of the contract. The PRR specifies the permitted types of contract.

Bidders may be charged fees for bidding and prequalification documents, fees are not specified in the PRR but should be based on the cost incurred in preparation and despatch of the documents.

A deadline for receipt of bids must be set, with bids kept unopened until this time and any late bids rejected. The PRR sets minimum bidding periods of at least:

30 days for Open Bidding or pre-qualification

14 days for Limited Bidding

5 days for Limited Enquiry

By mutual agreement for Direct Contracting

Bid securities are required with a fixed value, set by the PA, of between 1 and 2% of the estimated value and may be stipulated by the PA as a fixed sum; this requirement must be stated in the bid notice. Bid securities must be denominated in the currency of the bid. Conditions for forfeiture of bid securities are to the internationally accepted conditions of; bid withdrawal, refusing an arithmetic correction, failing to sign a contract or to provide performance security.

Bids must be opened in the presence of bidders’ representatives at the time and place stated in the bidding documents, immediately after the deadline for bid submission. Any bids not announced at the time of bid opening will not be considered for evaluation. PA shall register all bidders representative present and also invite any complaints in the prescribed form.

6.5.3 Evaluation


Award is to the lowest evaluated substantially responsive bid, although a preference may be given to Bhutanese bidders (or foreign bidders in joint venture with a Bhutanese bidder) under international bidding. Where two or more tenders are equivalent in the light of evaluation methods and factors set out in the PRR preference shall be given to the bid offering goods of Bhutanese

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origin provided that the price difference does not exceed five percent (5%) (in order to be classed as “Bhutanese origin” at least 30% of the ex-works value or of the value stated on a certificate of value issued by the Ministry of Economic Affairs must be Bhutanese). Similarly, a five percent (5%) margin of preference may be given to the National bidders in case of works.

Evaluation of works is in practise undertaken in part through the use of a web-based online tender evaluation system called “e-tool”. This new system was launched on 1st May 2011 by PPPD and is managed/support by the Construction Development Board (CDB). The “e-Tool” was developed around an automated point based system based on information registered on the e-tool system by bidders and entries made by procurement officers based on the content of bids received. This system aims to standardise and make uniform the tender evaluation process as well as to centralise the registered information on construction companies. The “e-tool” has significantly helped procurement agencies save time and inputs for tender evaluation,

However, the e-tool is not formally approved by the PPPD or mentioned under the PRR and no formal guidelines seem to exist as to how and when it should be utilised. At a practical level the use of the e-tool means that a substantial part of the evaluation process is done by a sole procurement officer and there is a danger the Tender Evaluation Committee merely “rubber stamps” the outcome of the evaluation done by the procurement officer rather than contributing in a meaningful way. This undermines the value of the Evaluation Committee and risks one individual skewing the result. Also there are concerns about the flexibility of the scoring system. It is understood that the ADB and WB have requested it is not used for their projects.

Under the PRR the PA can undertake negotiations with bidders where prices are deemed to be excessive or above local norms, when contracting using the Direct Method. Negotiations on price can also be undertaken when procuring Consultants Services where the quoted prices are much higher than those typically quoted. If the negotiations are unsuccessful then the next lowest compliant bidder can be called for negotiations. Negotiations cannot be re-opened after they are deemed to have failed.



Under the competitive proposals method, a notice requesting expressions of interest (EOIs) must be published. The notice will normally be published in the national media and where feasible on a website and where appropriate in an international newspaper or technical publication. For National Competitive Bidding firms can be invited directly without a pre-qualification process.

The evaluation of EOIs must be based on qualifications, experience and capacity. Shortlists must normally consist of a maximum of six firms or individuals.

6.6.2 Request for and Submission of Proposals PAs are required to prepare terms of reference (TOR) stating the nature, time and place of services, tasks and expected outputs.

Standard templates are provided for request for proposals (RFP) documents with specified content including TOR, instructions on the submission of proposals, the selection method, evaluation criteria, minimum technical pass mark and weightings and the terms and conditions of the contract. The PRR specific the permitted types of contract.

A deadline for receipt of proposals must be set, with proposals kept unopened until this time and any late proposals rejected. The PRR sets minimum bidding periods of at least 30 days. Both technical and financial openings must be held in the presence of bidders’ representatives and financial proposals must be retained unopened until the notified time for the financial opening.

6.6.3 Evaluation and Negotiation

Technical evaluation must be based on the criteria and weightings in the RFP document, with a minimum quality threshold set. Criteria may include experience of the firm, proposed methodology, qualifications of key human resources, knowledge and technology transfer and, for international proposals, key Bhutanese human resources.

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Award is to the first-ranked proposals, according to the selection method specified in the RFP. This may be:

the Quality and Cost Based Selection method;

the Quality Based Selection method – for services which are exceptionally complex or have considerable impact on future projects or the national economy;

the Fixed Budget method; or

the Least Cost Selection method.

The Consultants Qualifications method

Single Source Selection method

The Quality and Cost, Quality and the Single Source Selection methods are equivalent to JICA selection procedures. The Fixed Budget, Least Cost Selection and Consultants Qualifications methods are not contained in JICA Guidelines, but modelled on World Bank guidelines.

Negotiations may only be held with the selected consultant, although the PA can negotiate with the next ranked consultant if these negotiations fail. Technical negotiations are limited to the TOR, scope of services, reports and facilities provided by the PA. Fee rates can only be negotiated for time based contracts where negotiations on price can be undertaken when the quoted prices are much higher than those typically quoted locally, but reimbursables can be negotiated under all selection methods.


After the award of contract, the Procuring Agency shall send to all consultants who have submitted proposals the following information:

(a) the names of all consultants who submitted proposals;

(b) the technical points assigned to each consultant;

(c) the evaluated prices of each consultant;

(d) the final point ranking of the consultants;

(e) the name of the winning consultant and the price, duration, and summary scope of the contract.

Contracts may be amended by written consent of both parties, providing the basic scope of the contract is not changed. The PRR contains no specific provisions on approvals for contract amendments. In cases of unforeseen circumstances, variation orders of up to 15% may be issued without a contract amendment. Variation orders over 15% require the approval of the Council of Ministers.

Price adjustment is permitted for contracts that have a duration of more than 18 months. The PRR guidance on price adjustment allows price escalation in contracts of more than 18 months in cases where unusual conditions increase market prices. No adjustment is allowed in the first 18 months of a contract.

Dispute resolution under the contract is to be settled by any mediation as designated by the parties by common agreement or through National Arbitration Committee or the Courts of Bhutan. There are no special provisions for international tenders.


PAs are required to maintain a comprehensive list of records, however there is no guidance as to formats or the period for which records must be retained. Comment is made that records must be kept until the project is finished and the audit completed.

Communications must be in writing, but procurement transactions may be carried out through electronic communications where permitted by government and subject to requirements of security, access, preserving content and not otherwise contravening the PRR.

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Many key communications must be sent to all bidders, including the list of pre-qualified bidders, bid clarifications and amendments and notices of cancellation.



The PRR establishes a mechanism for bidders to challenge procurement decisions, allowing bidders to file an application for review of any error or breach of duty by a PA in procurement proceedings. The mechanism comprises the establishment of an Independent Review Body (IRB) for Procurement Grievance and the operation of the body.

The Ministry of Finance announced on the 15th June 2012 that the body had been established and the Body would comprise three members, one each from the Ministry of Finance, the Ministry of Works and Human Settlement and the Bhutan Chamber of Commerce and Industries. The PPPD has been appointed to act as the Secretariat for the Body.

The review mechanism has the following components:

Applications must first be submitted to the Head of the PA within 20 days of the date that the infraction was identified;

The Head of the PA must within 15 days of receipt of an application respond stating the reasons for the decision and if the complaint is upheld in total or in part indicate the corrective measures to be taken;

Should the decision not be received within 15 days or the complainant disagrees with the decision, the complainant may initiate a review by the Independent Review Body. A review procedure must be brought by the complainant within 10 days of the decision of the Head of the Procuring Agency or, where no such decision has been taken within 25 days of the original complaint.

No timescale is stated for the IRB to respond to a complaint. The IRB may make an interlocutory or final decision on the legality or principles that apply, annul in whole or part any unlawful act or decision by the PA including amendments to technical or other specifications, prohibit the PA from acting unlawfully or making unlawful decisions or procedures and order the termination of the procurement. The IRB may also order the suspension of the procurement procedure pending its final decision. If the decision of the Independent Review Body is not acceptable then an appeal may be made to the Court only on a question of law. In such a case, any concession granted by the Review Body is withdrawn. The constitution, rules of procedures and operation of the Independent Review Body shall be established by the Ministry of Finance. If the facts disclose a potential issue of corruption, the Independent Review Body shall immediately refer the case to the Anti-Corruption Commission.

The public procurement system in Bhutan therefore lacks an effective mechanism for challenging procurement decisions and falls far short of international standards, such as those set by the United Nations Convention Against Corruption (which the RGoB has ratified) which requires an effective system of review and appeal. Timescales for both submission of complaints and the issue of decisions are short compared to many other countries.


The PRR does not contain a code of conduct for public officials involved in public procurement and for bidders. However, before each meeting of TCs members are required to sign a certificate stating “Declared that none of my close relatives (father, mother, brother, sister, spouse and own children) have taken part in the competitive bidding and that I do not have any direct interest in any of the parties participating in the bidding.”

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This declaration falls short of what is deemed best practise. Normally a code of conduct requires officials to act impartially and in the public interest, avoid conflict of interest, maintain confidentiality and not commit corrupt, fraudulent or collusive practices. The code of conduct for bidders should cover bribery, misrepresentation, coercion, collusion, interfering with other bidders, seeking to influence the PA and conflict of interest.

It is noted that, as required by the Anti-Corruption Commission, it is mandatory for all bid document to contain an Integrity Pact. The Integrity Pact has to be submitted duly signed by the bidder along with its bid. Non-compliance leads to bid rejection.

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8. Recommendations The following sections make recommendations for the strengthening of the national procurement system of Bhutan. Many are already recognised by the Royal Government of Bhutan, with actions included in the 10th Five Year Plan running from 2008 to 2013.

8.1 Legal Framework

Complete all outstanding work on the revision of the legal framework. As well as addressing identified weaknesses in the PRR, such as the complaints mechanism, as discussed in section 8.4 below, the revision should:

ensure that the PRR includes a requirement for robust procurement planning;


ensure that documents, especially for low value procurements managed at a local level, are available in English as well as Dzongkha;

in line with the above-point ensure that rules, guidance documents and templates are suitable and proportionate for smaller PAs, such as local government bodies, schools and clinics;

develop an ethical code for all involved in public procurement to strengthen anti-corruption measures and to enhance the perceived integrity of the public procurement process

introduce a clear procurement filing and record keeping system


Strengthen PPPD to ensure it is able to fulfil its mandate of monitoring and reporting public procurement, as well as building capacity among the staff of the PPPD and PAs. This should be achieved through continued capacity building of staff recruitment of additional staff as necessary, as well as developing the skills of current staff and ensuring it has all necessary tools. Tools and training for procurement monitoring and auditing tasks are one priority.

As a Division under the Ministry of Finance, reporting to the Secretary of the Ministry of Finance, the PPPD formally has a high level and authoritative standing in Government (PRR rules 8.2.1.1 and 8.2.1.2). In practice, however, PPPD administratively falls under the Department of National Properties, and the Head of PPPD refers to the Head of the Department of National Properties and not directly to the Secretary. This condition, together with the fact that PPPD does not have the authority to publicly address matters relating to public procurement, but is required to refer all such matters to the Secretary (who may however choose to delegate), this puts at risk the independence of the body. The issue of independence is further exaggerated by the fact that no rules on the financing of the PPPD are established in the PRR, hence making the financing of PPPD subject to easily changeable administrative decisions.


Procurement capacity varies among government procurement staff but there is a need to ensure that they all have good fundamental procurement skills and are able to comply with the legal framework. Where procurement skills are weak there is a need to develop the key procurement skills throughout the procurement cycle.

However, it is important to recognise that procurement capacity development initiatives should differentiate between different procurement roles, including practitioners in procurement units, those responsible for approvals, including the chief of the PA and staff with technical involvement, such as the preparation of specifications and terms of reference and participation in evaluation committees. The work undertaken in the following project should be extended to meet this requirement.

Between 15th June 2009 and May 2011 the World Bank (WB) funded a capacity building project with the PPPD called “Institutional Capacity Building Project in Procurement (ICBPP) – Bhutan”.

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This project In addition to building capacity in public procurement the project aimed to introduce a sustainable internationally recognized qualification in procurement to be delivered by Royal Institute of Management (RIM) and other Institutes. The 3 main objectives of ICBPP were to:

1) Establish and embed procurement bench-marks and standards which are based on international best practice

2) Establish and professionalize a procurement community through a national people development strategy

3) Strengthen and support the wider roll out of procurement practices, in order to create a “Body” of procurement knowledge for the country.

It is important to build on the successes of this project and to now deepen procurement expertise on a sustainable basis beyond PPPD in the key procuring ministries and agencies to that a professional cadre of procurement experts develops in the Bhutanese Government.


Significantly revise the complaints mechanisms to ensure access by bidders to an effective system of review and appeal. Timescales for review and the rights of bidders should be revised in line with international standards; the UNCITRAL Model Law on Public Procurement provides a useful template.

8.5 E-procurement

Bhutan having put in place some of the fundamental “building blocks” for an effective public procurement system is now considering the merits of introducing an e-procurement system that will make the public procurement system more secure, efficient and transparent. Support is likely to be needed in considering firstly whether now is an appropriate time to introduce an e-procurement system and what an appropriate system would be for Bhutan. It is understood that the World Bank will likely support this initiative.

－76－


17


－77－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

18

Stud

y on

the

Nat

iona

l Pro

cure

men

t Sys

tem

of B

huta

n S

tudy

of B

huta

n P

rocu

rem

ent S

yste

m is

bas

ed o

n:

Th

e R

oyal

Gov

ernm

ent o

f Bhu

tan

Pub

lic F

inan

ce A

ct o

f Bhu

tan

2007

The

Roy

al G

over

nmen

t of B

huta

n, M

inis

try o

f Fin

ance

, Fin

ance

and

Acc

ount

ing

Man

ual 2

009

Th

e R

oyal

Gov

ernm

ent o

f Bhu

tan,

Min

istry

of F

inan

ce, P

rocu

rem

ent R

ules

and

Reg

ulat

ions

(PR

R) 2

009

Th

e w

ebsi

te o

f the

Pub

lic P

rocu

rem

ent P

olic

y D

ivis

ion

(PP

PD

) at h

ttp://

ww

w.m

of.g

ov.b

t/ind

ex.p

hp?d

eptid

=12&

id=6

7

It co

vers

the

key

elem

ents

of t

he n

atio

nal p

rocu

rem

ent s

yste

m, b

ut is

not

exh

aust

ive.

Whe

re r

elev

ant,

it hi

ghlig

hts

feat

ures

or

prac

tices

whi

ch d

iffer

fro

m th

ose

cont

aine

d in

JIC

A G

uide

lines

.

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

A

Lega

l Fra

mew

ork

A1

Whi

ch d

ocum

ents

mak

e up

the

leg

al f

ram

ewor

k? i

.e.

is

ther

e a

proc

urem

ent

law

/

regu

latio

ns

/ gu

idel

ines

/

man

ual?

Th

e R

oyal

G

over

nmen

t of

B

huta

n P

ublic

Fi

nanc

e A

ct o

f Bhu

tan

2007

Th

e R

oyal

Gov

ernm

ent

of B

huta

n, M

inis

try o

f Fi

nanc

e, F

inan

ce a

nd A

ccou

ntin

g M

anua

l 200

9

Th

e R

oyal

Gov

ernm

ent

of B

huta

n, M

inis

try o

f Fi

nanc

e, P

rocu

rem

ent

Rul

es a

nd R

egul

atio

ns

(PR

R) 2

009

Th

e w

ebsi

te o

f the

Pub

lic P

rocu

rem

ent P

olic

y D

ivis

ion

(PP

PD

) at

http

://w

ww

.mof

.gov

.bt/i

ndex

.php

?dep

tid=1

2&id

=67

PP

PD

do

no

t se

e an

y se

rious

con

flict

s be

twee

n th

e la

w a

nd r

egul

atio

ns n

otes

in

the

left

hand

col

umn.

C

hang

es a

re i

ntro

duce

d as

&

whe

n fo

und

nece

ssar

y -

PP

PD

wan

ts t

o re

vise

PR

R

to

inco

rpor

ate

all

amen

dmen

ts/a

dditi

ons

mad

e af

ter

publ

icat

ion

in c

ircul

ars

into

si

ngle

do

cum

ent

in

2012

. A

lso

curr

ently

tra

nsla

ting

Sta

ndar

d B

iddi

ng d

ocum

ents

in

to

Bhu

tane

se

Lang

uage

-D

zong

kha

for

low

va

lue

proc

urem

ent.

It is

now

at t

he

－78－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

19

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

finai

lsia

tion

stag

e.

A

2 A

re t

here

sta

ndar

d bi

ddin

g do

cum

ents

and

/or

any

othe

r st

anda

rd fo

rms

or te

mpl

ates

? If

so,

are

they

bas

ed o

n a

parti

cula

r te

mpl

ate,

suc

h as

do

nor d

ocum

ents

?

SB

Ds

for g

oods

(IC

B a

nd N

CB

),

SB

Ds

for

wor

ks (

vario

us v

alue

s an

d m

etho

ds p

lus

preq

ualif

icat

ion)

and

co

nsul

tanc

y se

rvic

es (

vario

us v

alue

s an

d co

ntra

ct

type

s)

The

SB

D a

re s

imila

r to

Wor

ld B

ank

and

AD

B

form

at

PP

PD

is

re

spon

sibl

e fo

r up

datin

g th

ese.

Is

not

ed s

ome

Sta

te O

wne

d C

orpo

ratio

ns

have

de

velo

ped

thei

r ow

n S

BD

.

B

Scop

e of

App

licat

ion

B1

Who

doe

s th

e le

gal f

ram

ewor

k ap

ply

to?

i.e. d

oes

it co

ver

para

stat

al

and

stat

e ow

ned

ente

rpris

es

or

only

go

vern

men

t min

istri

es?

The

proc

urem

ent r

ules

and

regu

latio

n ap

plie

s to

all

proc

urem

ents

/Gov

ernm

ent a

genc

ies

exce

pt fo

r;

P

rocu

rem

ents

invo

lvin

g th

e se

curit

y in

tere

sts

of th

e co

untry

Bila

tera

l or m

ultil

ater

al p

roje

ct a

gree

men

t re

quire

men

ts

G

over

nmen

t ow

ned

agen

cies

whi

ch h

ave

thei

r ow

n ru

les

and

regu

latio

ns fo

r pr

ocur

emen

t but

thes

e sh

ould

refle

ct th

e br

oad

prin

cipl

e of

PR

R 2

009

B2

Doe

s th

e le

gal f

ram

ewor

k ap

ply

to a

ll pr

ocur

emen

t or

are

ther

e ex

cept

ions

? C

over

s pr

ocur

emen

ts

of

good

s,

cons

truct

ion,

co

nsul

tanc

y se

rvic

es a

nd o

ther

ser

vice

s ex

cept

w

hen:

•P

rocu

rem

ents

impa

ct o

n S

ecur

ity in

tere

sts

of t

he

coun

try

•Bila

tera

l or

mul

tilat

eral

pro

ject

agr

eem

ent

requ

ire

diffe

rent

gui

delin

es to

be

follo

wed

•W

here

gov

ernm

ent

owne

d ag

enci

es,

whi

ch h

as

thei

r ow

n ru

les

and

regu

latio

n fo

r pr

ocur

emen

t w

ithin

the

bro

ad p

rinci

ple

of P

RR

200

9, c

ondu

ct

PP

PD

ha

s ve

ry

limite

d in

tera

ctio

ns w

ith g

over

nmen

t co

rpor

atio

ns

(incl

udin

g al

l th

e ke

y on

es

unde

r D

ruk

Hol

ding

In

vest

men

t (D

HI))

an

d do

esn’

t kno

w h

ow m

any

gove

rnm

enta

l age

ncie

s ha

ve

thei

r ow

n ru

les.

－79－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

20

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

proc

urem

ent)

B3

Wha

t pr

ovis

ion

does

th

e le

gal

fram

ewor

k m

ake

for

appl

icat

ion

of a

ltern

ativ

e do

nor r

ules

? P

RR

200

9 al

low

s pr

ocur

emen

ts t

o fo

llow

don

or

agen

cies

pro

cure

men

t ru

les

and

regu

latio

ns if

thi

s re

quire

men

t is

ref

lect

ed in

the

agre

emen

t with

the

dono

r.

JIC

A

can

requ

ire

use

its

proc

urem

ent

guid

elin

es

whe

re

spec

ified

in

lo

an

agre

emen

ts

C

Inst

itutio

nal F

ram

ewor

k

C

1 Is

pro

cure

men

t ce

ntra

lised

or

dece

ntra

lised

? i.e

. is

the

re

any

cent

ral b

ody

resp

onsi

ble

for

cond

uctin

g or

app

rovi

ng

proc

urem

ent o

r doe

s ea

ch a

genc

y do

this

itse

lf?

Pro

cure

men

t pr

oces

s is

ove

rsee

n by

PP

PD

but

P

PP

D d

oes

not c

ondu

ct p

rocu

rem

ent i

tsel

f. A

ctua

l pr

ocur

emen

t is

dece

ntra

lised

to

di

ffere

nt

entit

ies/

leve

ls o

f gov

ernm

ent,

right

dow

n to

Gew

og

leve

l, de

pend

ing

on v

alue

s in

volv

ed.

With

exc

eptio

ns m

entio

ned

in B

1 an

d B

2, P

As

are

requ

ired

to

follo

w t

he G

over

nmen

t’s p

rocu

rem

ent

rule

s an

d re

gula

tions

and

ado

pt th

e S

BD

s.

C2

Is th

ere

a re

gula

tory

bod

y fo

r pro

cure

men

t? If

so,

wha

t are

its

func

tions

? P

ublic

P

rocu

rem

ent

Pol

icy

Div

isio

n un

der

the

Min

istry

of F

inan

ce is

the

cust

odia

n of

PR

R.

Func

tions

def

ined

in s

65,

PR

R a

nd s

uppl

emen

ted

in R

ule

144,

PR

R a

nd in

clud

e:

P

olic

y: a

dvis

ing

Gov

ernm

ent o

n pr

ocur

emen

t po

licy,

sub

mitt

ing

annu

al re

ports

, rev

iew

ing

the

syst

em, s

tudy

ing

othe

r sys

tem

s an

d co

ordi

natin

g re

form

s

Reg

ulat

ory

fram

ewor

k: is

suin

g gu

idel

ines

, m

anua

ls a

nd S

BD

s an

d ad

visi

ng P

As

on

thei

r int

erpr

etat

ion

M

onito

ring:

col

lect

ing

proc

urem

ent a

nd

cont

ract

impl

emen

tatio

n st

atis

tics,

requ

iring

Sta

ff ar

e re

crui

ted

sole

y to

P

PP

D a

nd d

o no

t ro

tate

to

othe

r gov

ernm

ent m

inis

tries

C

urre

ntly

no

as

pira

tions

/

plan

s to

est

ablis

h P

PP

D a

s an

inde

pend

ent a

genc

y.

－80－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

21

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

repo

rts fr

om P

As

and

mon

itorin

g pr

ocur

emen

t

Info

rmat

ion

diss

emin

atio

n: o

pera

ting

a pr

ocur

emen

t web

site

and

pub

lishi

ng a

bu

lletin

Cap

acity

bui

ldin

g: a

rran

ging

trai

ning

and

ot

her p

rogr

amm

es fo

r pub

lic a

nd p

rivat

e se

ctor

, arr

angi

ng a

ccre

dita

tion

prog

ram

mes

fo

r pub

lic s

ecto

r pro

cure

men

t sta

ff

Reg

ulat

ory:

bla

cklis

ting

supp

liers

and

act

ing

as S

ecre

taria

t to

the

Rev

iew

Com

mitt

ee

PP

PD

no

t in

volv

ed

in

proc

urem

ent

proc

esse

s (e

xcep

t its

ow

n) o

r set

tling

dis

pute

s C

3 W

ho

is

resp

onsi

ble

for

mon

itorin

g or

au

ditin

g pr

ocur

emen

t?

The

PP

PD

. Its

fun

ctio

ns i

nclu

de c

olle

ctin

g da

ta,

requ

iring

repo

rts fr

om P

As,

mon

itorin

g, u

nder

taki

ng

(or

arra

ngin

g) t

echn

ical

aud

its o

f co

mpl

ianc

e an

d m

akin

g ob

serv

atio

n vi

sits

. P

PP

D

is

plan

ning

a

Pro

cure

men

t M

onito

ring

Man

agem

ent

Info

rmat

ion

Sys

tem

(P

MM

IS)

with

be

nchm

arks

and

indi

cato

rs

Offi

ce o

f th

e A

udito

r G

ener

al a

udits

pro

cure

men

t an

d pu

blis

hes

a sp

ecifi

c gu

ide

on p

rocu

rem

ent

audi

t.

PP

PD

is s

uppo

se to

mon

itor

the

impl

emen

tatio

n of

pr

ocur

emen

t ru

les

&

its

rela

ted

docu

men

ts

thro

ugh

colle

ctio

n an

d an

alys

is

of

repo

rts

prov

ided

by

P

A

base

d on

th

e re

porti

ng

form

ats

deve

lope

d by

PP

PD

an

d pr

opos

e im

prov

emen

ts

base

d on

suc

h re

ports

but

to

date

th

ey

have

no

t be

en

able

to d

o th

is d

ue to

lack

of

man

pow

er &

com

pete

ncy.

P

PP

D h

as n

ot b

een

able

to

in

tera

ct w

ith R

AA

muc

h bu

t w

hene

ver

PP

PD

pr

opos

es

impr

ovem

ents

to

P

RR

&

re

late

d gu

idel

ines

R

AA

is

－81－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

22

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

alw

ays

invi

ted

to p

artic

ipat

e an

d so

met

imes

RA

A p

oint

s ou

t the

def

icie

ncie

s in

t ru

les

rela

ted

to a

udits

. N

oted

that

P

PP

D u

nder

stan

d R

AA

hav

e pr

ocur

emen

t au

dit

man

ual

but

have

no

t se

en

it an

d w

ere

not

invo

lved

in

its

de

velo

pmen

t. C

4 W

ho is

res

pons

ible

for

pro

cure

men

t w

ithin

eac

h ag

ency

? i.e

.is t

here

a p

rocu

rem

ent

unit,

des

igna

ted

proc

urem

ent

staf

f with

in d

epar

tmen

ts o

r any

form

of c

omm

ittee

?

Ove

rall

resp

onsi

bilit

y re

sts

with

the

Chi

ef o

f the

PA

. P

As

are

to

esta

blis

h a

proc

urem

ent

unit

or

desi

gnat

e a

unit

with

pro

cure

men

t re

spon

sibi

litie

s,

s7(3

), P

RR

. P

As

to fo

rm T

ende

r or e

valu

atio

n co

mm

ittee

s, s

71,

PRR

C5

Are

th

ere

any

requ

irem

ents

fo

r qu

alifi

catio

ns

or

regi

stra

tion

for p

rocu

rem

ent s

taff?

P

As

to

carry

ou

t pr

ocur

emen

t ac

tivity

th

roug

h em

ploy

ees

with

qua

lific

atio

ns p

resc

ribed

by

the

PP

PD

an

d kn

owle

dge

or tr

aini

ng o

n pr

ocur

emen

t, s7

(2),

PR

R

PP

PD

func

tions

in

clud

e de

finin

g fu

nctio

ns

of

proc

urem

ent s

taff

and

arra

ngem

ents

for

asse

ssin

g th

eir c

apab

ility

and

expe

rtise

.

Thro

ugh

ICB

PP

pro

ject

the

R

oyal

C

ivil

Ser

vice

C

omm

issi

on h

as e

ndor

sed

a pr

ocur

emen

t co

mpe

tenc

y fra

mew

ork

utili

sing

the

Cha

rtere

d In

stitu

te

of

Pur

chas

ing

and

Sup

ply’

s ,(U

K)

qual

ifica

tions

ag

ains

t bu

t it

has

not

yet

been

im

plem

ente

d. R

oyal

Ins

titut

e of

M

anag

emen

t (R

IM)

cour

se

on

proc

urem

ent

is

treat

ed a

s th

e ba

se c

ours

e fo

r C

IPS

but

RIM

is

unab

le

to f

ully

int

rodu

ce t

he C

IPS

co

urse

due

to

high

cos

t an

d no

n-av

aila

bilit

y of

fa

culty

. C

IPS

hav

e be

en t

o B

huta

n

－82－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

23

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

and

disc

usse

d w

ith P

PP

D.

In

ter

ms

of c

apac

ity b

uild

ing

proc

urem

ent

prof

essi

onal

izat

ion

is o

ne o

f P

PP

D

prio

ritie

s al

ong

with

tra

inin

g of

the

priv

ate

sect

or.

PP

PD

ho

pes

to

laun

ch

proc

urem

ent

cour

ses

in f

ew

gove

rnm

ent c

olle

ges.

C

6 H

ow i

s pr

ocur

emen

t re

view

ed o

r ap

prov

ed w

ithin

eac

h ag

ency

? i.e

. is

th

ere

any

com

mitt

ee

or

boar

d w

hich

ap

prov

es a

nd a

re t

here

leve

ls o

f au

thor

ity f

or a

ppro

vals

? A

t wha

t sta

ges

is p

rocu

rem

ent r

evie

wed

?

Bid

ding

doc

umen

ts to

be

appr

oved

by

chie

f of P

A,

PRR

47

D

epen

ding

on

finan

cial

thre

shol

ds, c

omm

ittee

s ar

e fo

rmed

at

th

e re

com

men

datio

n of

P

A.

The

com

mitt

ee is

fully

res

pons

ible

for

the

inte

rpre

tatio

n an

d re

view

of t

he S

BD

A

ppro

val o

f ev

alua

tions

var

ies

acco

rdin

g to

val

ue,

PR

R 6

7.

C7

Is

resp

onsi

bilit

y fo

r co

ntra

ct

man

agem

ent

with

in

each

ag

ency

spe

cifie

d?

Pro

cure

men

t uni

t res

pons

ible

for

exam

inin

g qu

ality

st

anda

rds

of d

eliv

ered

goo

ds,

wor

ks a

nd s

ervi

ces

and

keep

ing

perfo

rman

ce g

uara

ntee

s.

C8

Who

pe

rform

s fin

anci

al

man

agem

ent

func

tions

(e

.g.

com

mitm

ents

, pa

ymen

ts e

tc)?

Are

the

y se

para

ted

from

pr

ocur

emen

t?

The

head

of

the

PA

is

resp

onsi

ble

for

finan

cial

m

anag

emen

t un

der

the

Fina

ncia

l P

roce

dure

s A

ct

1999

. P

rocu

rem

ent a

nd fi

nanc

ial f

unct

ions

are

sep

arat

ed.

Onc

e co

ntra

cts

are

awar

ded,

cop

ies

are

prov

ided

to

th

e fin

ance

de

partm

ent,

who

al

so

proc

ess

invo

ices

. Th

e H

ead

of t

he F

inan

ce d

epar

tmen

t is

re

spon

sibl

e fo

r dis

burs

emen

t

D

Reg

istr

atio

n an

d Pa

rtic

ipat

ion

D1

Are

the

re a

ny r

equi

rem

ents

for

sup

plie

r re

gist

ratio

n as

a

PR

R r

equi

res

the

crea

tion

of r

egis

tratio

n sy

stem

.

－83－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

24

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

requ

irem

ent

of

parti

cipa

tion

in

proc

urem

ent

or

as

a co

nditi

on o

f con

tract

aw

ard?

If s

o, g

ive

deta

ils

The

appr

opria

te a

utho

ritie

s fro

m t

ime

to t

ime

will

unde

rtake

reg

istra

tion.

In th

e co

ntex

t of w

orks

, the

C

onst

ruct

ion

Dev

elop

men

t Boa

rd is

the

com

pete

nt

auth

ority

fo

r co

ntra

ctor

s an

d en

gine

erin

g co

nsul

tant

s.

The

Min

istry

of E

cono

mic

Affa

irs is

the

resp

onsi

ble

agen

cy fo

r iss

uing

trad

e lic

ence

for s

uppl

iers

. D

2 A

re t

here

any

res

trict

ions

on

parti

cipa

tion

or o

rigin

of

good

s or

sta

ff ba

sed

on n

atio

nalit

y? If

so,

giv

e de

tails

N

o re

stric

tions

on

pa

rtici

patio

n ba

sed

on

natio

nalit

y,

Res

trict

ions

ar

e ap

plie

d on

ly

whe

n th

e do

nor

agre

emen

t req

uire

s.

How

ever

, of

ten

are

indi

rect

re

stric

tions

su

ch

as

bids

/pay

men

ts in

Nu.

D3

Is th

ere

any

mec

hani

sm fo

r sus

pens

ion

of n

on-p

erfo

rmin

g su

pplie

rs a

nd/o

r th

ose

guilt

y of

mis

cond

uct?

If

so,

give

de

tails

Bid

ders

are

exc

lude

d w

here

; -

Bhu

tan

proh

ibits

com

mer

cial

rel

atio

n w

ith

the

coun

try in

que

stio

nsin

com

plia

nce

with

an

y U

nite

d N

atio

n sa

nctio

ns

- W

here

they

are

Inso

lven

t or b

ankr

upt;

- W

here

the

ir A

ffairs

are

adm

inis

tere

d by

a

cour

t -

Foun

d gu

ilty

of p

rofe

ssio

nal m

isco

nduc

t; -

Vio

latio

n of

tax

law

s;

- C

onvi

cted

of f

raud

or c

orru

ptio

n;

- D

ebar

red

from

pu

blic

pr

ocur

emen

t by

co

mpe

tent

aut

horit

y.

PA

s ba

sed

on t

he g

roun

ds

men

tione

d in

PR

R 2

009

or

rele

vant

SB

Ds

can

excl

ude

the

bidd

ers

from

pa

rtici

patio

n in

th

e bi

ddin

g pr

oces

s (is

app

licab

le o

nly

to

agen

cy

in

ques

tion)

. D

ebar

emen

t w

hich

ap

plie

s na

tion-

wid

e is

don

e by

tw

o ag

enci

es A

CC

& C

DB

and

is

anno

unce

d in

mas

s m

edia

&

on r

elev

ant

web

site

.

AC

C

have

ask

ed P

PP

D t

o w

ork

with

the

m o

n de

bare

men

ts

actin

g as

kin

d of

sec

reta

riat

but

PP

PD

is

re

luct

ant

as

scop

e lik

ely

to

exce

ed

proc

urem

ent

and

they

ar

e w

orrie

d ab

out

how

m

uch

time

it w

ill ta

ke u

p w

hen

they

ha

ve li

mite

d m

an p

ower

.

－84－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

25

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

E Pr

ocur

emen

t Pla

nnin

g

E

1 A

re a

genc

ies

requ

ired

to p

repa

re p

rocu

rem

ent

plan

s as

pa

rt of

thei

r bud

getin

g pr

oces

s?

Pro

cure

men

t pl

ans

do n

ot f

orm

a s

peci

fic p

art

of

the

budg

etin

g pr

oces

s

E2

Are

age

ncie

s re

quire

d to

pre

pare

pro

cure

men

t pl

ans

for

maj

or p

rocu

rem

ent r

equi

rem

ents

? N

o no

t unl

ess

this

is a

don

or re

quire

men

t

E3

Wha

t ar

e th

e ke

y co

nten

ts o

f pr

ocur

emen

t pl

ans?

E.g

. m

etho

ds, p

acka

ging

, typ

e of

con

tract

s, ti

mes

cale

s et

c S

ee E

-2

F Pr

ocur

emen

t Met

hods

F1

Is

the

re a

pre

fere

nce

for

open

com

petit

ion,

with

oth

er

met

hods

requ

iring

just

ifica

tion?

Y

es,

pref

eren

ce

for

open

bi

ddin

g,

Mos

tly

the

bidd

ing

proc

ess

is s

ingl

e st

age

sing

le e

nvel

ope.

O

nly

for

com

plex

or

larg

e sc

ale

proj

ect,

it is

sin

gle

stag

e tw

o en

velo

pe

F2

Wha

t pr

ocur

emen

t m

etho

ds

are

perm

itted

fo

r go

ods,

w

orks

and

non

-con

sulta

ncy

serv

ices

? P

rovi

de d

etai

ls o

f th

resh

olds

and

con

ditio

ns fo

r use

PR

R d

efin

es:

O

pen

natio

nal b

iddi

ng –

def

ault

met

hod

O

pen

inte

rnat

iona

l bid

ding

– re

quire

d w

here

the

valu

e of

wor

ks a

re b

eyon

d th

e ca

paci

ty o

f Bhu

tane

se

Li

mite

d Te

nder

/Bid

ding

M

etho

d -

The

num

ber

of b

idde

rs i

s lim

ited

to 3

to

5 bi

dder

s. T

hres

hold

val

ue, i

n pl

ace.

Lim

ited

Enq

uiry

Met

hod

- th

is m

etho

d al

low

s th

e P

A t

o so

licit

pric

es f

rom

at

leas

t th

ree

dom

estic

co

mpa

nies

or

in

divi

dual

s an

d m

ay

be

used

fo

r th

e pr

ocur

emen

t of

goo

ds o

r w

orks

whe

re

the

tota

l va

lue

does

no

t ex

ceed

th

e ap

plic

able

thr

esho

ld v

alue

or

whe

re a

n ea

rlier

Lim

ited

Bid

ding

pro

cedu

re l

ess

than

thre

e bi

ds w

ere

rece

ived

Not

e: u

nlik

e JI

CA

gui

delin

es

no i

nter

natio

nal

bidd

ing

eg

limite

d in

tern

atio

nal

bidd

ing

outs

ide

of o

pen

proc

urem

ent

met

hod.

DF

H

－85－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

26

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

D

irect

pur

chas

e m

ostly

for l

ow v

alue

, re

peat

or e

mer

genc

y pu

rcha

ses

Fr

amew

ork

cont

ract

F3

W

hat

proc

urem

ent/

sele

ctio

n m

etho

ds a

re p

erm

itted

for

co

nsul

tanc

y se

rvic

es?

Pro

vide

det

ails

of

thre

shol

ds a

nd

cond

ition

s fo

r use

The

sele

ctio

n m

etho

ds

are;

Q

CB

S,

FBS

, LC

S,

CQ

S, S

SS

and

Inde

pend

ent I

ndiv

idua

l

QC

BS

is

empl

oyed

, un

less

th

e ci

rcum

stan

ces

just

ify th

e us

e of

ot

her

sele

ctio

n m

etho

ds

pres

crib

ed

unde

r ea

ch

met

hods

.

How

ever

, no

ted

tech

nica

l: fin

anci

al

wei

ght

used

is o

ften

60 :

40

ie e

mph

asis

far m

ore

on c

ost

than

the

inte

rnat

iona

l nor

m.

F4

Is

the

split

ting

of

proc

urem

ent

requ

irem

ents

to

av

oid

thre

shol

ds p

rohi

bite

d?

No

F5

Is

a si

mpl

ified

m

etho

d av

aila

ble

for

low

va

lue

proc

urem

ent,

with

a c

lear

thre

shol

d?

Yes

, fo

r lo

w v

alue

the

pro

cure

men

t is

thr

ough

lim

ited

bidi

ng

and

limite

d en

quiry

or

di

rect

co

ntra

ctin

g

F6

Is s

ingl

e so

urce

pro

cure

men

t lim

ited

to s

peci

fied,

just

ified

ci

rcum

stan

ces?

It

is

rest

ricte

d to

us

e in

si

tuat

ions

w

here

pr

ocur

emen

t is

for

low

val

ue a

dmin

istra

tion

item

s (n

ot e

xcee

ding

Nu

0.02

milli

on),

whe

re a

n ea

rlier

Li

mite

d E

nqui

ry p

roce

dure

fai

led

to p

rovi

de t

hree

bi

ds,

for

rura

l wor

ks w

here

no

bids

wer

e re

ceiv

ed

unde

r op

en t

ende

r (n

ot e

xcee

ding

Nu

0.3

milli

on),

whe

re

ther

e is

on

ly

one

avai

labl

e su

pplie

r/con

tract

or,

whe

re s

pare

par

ts a

re b

eing

pr

ocur

ed

for

item

s th

at

have

al

read

y be

en

proc

ured

, w

here

rep

eat

orde

rs a

re b

eing

mad

e (s

ubje

ct t

o lim

itatio

ns b

ased

on

the

perc

enta

ge o

f th

e co

ntra

ct

in

rela

tion

to

that

of

th

e or

igin

al

－86－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

27

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

cont

ract

) and

whe

re e

xtre

me

urge

ncy

is re

quire

d.

G

Bid

ding

Pr

oces

s fo

r G

oods

, W

orks

an

d N

on-

Con

sulta

ncy

Serv

ices

G1

Are

ag

enci

es

requ

ired

to

adve

rtise

pr

ocur

emen

t op

portu

nitie

s w

idel

y, w

heth

er n

atio

nally

or i

nter

natio

nally

?

Invi

tatio

n to

bid

or

preq

ualif

y to

be

publ

ishe

d in

da

ily

new

spap

ers

of

natio

nal

circ

ulat

ion

(or

inte

rnat

iona

lly fo

r ope

n in

tern

atio

nal b

iddi

ng)

PP

PD

has

alre

ady

crea

ted

web

site

whi

ch w

ill so

on b

e la

unch

ed.

This

is

ai

med

to

war

ds d

evel

opm

ent

of f

ull

e-G

P s

yste

m i

n fu

ture

and

on

ce

this

is

re

alis

ed

all

proc

urem

ent

info

rmat

ion

will

be r

equi

red

to r

oute

thr

ough

th

is c

entra

lised

web

site

. G

2 Is

use

of

limite

d bi

ddin

g re

stric

ted

to s

peci

fied,

jus

tifie

d ci

rcum

stan

ces?

Li

mite

d bi

ddin

gs a

re a

dopt

ed w

hen

open

ten

der

fails

or

whe

n th

e th

resh

old

valu

e is

for

lim

ited

bidd

ing

G3

Is

pre-

qual

ifica

tion

perm

itted

or

re

quire

d fo

r la

rge

or

com

plex

con

tract

s?

Bid

ding

can

be

with

or w

ithou

t pre

qual

ifica

tion,

N

ot m

anda

tory

to p

re-q

ualif

y

Bas

ed

on

com

plex

ity

and

size

of

cont

ract

s w

here

hig

h co

st

of

prep

arin

g de

taile

d bi

ds

coul

d di

scou

rage

co

mpe

titio

n (e

ntire

ly

on

capa

bilit

y an

d re

sour

ces

of

pros

pect

ive

bidd

ers)

.PA

sh

ould

pr

ovid

e se

t of

pr

e-qu

alifi

catio

ns

docu

men

t to

th

ose

who

res

pond

to

such

in

vita

tion.

A

dmitt

ed t

hat

in

real

ity (

cons

ulta

ncy

serv

ices

as

ide)

pr

e-qu

alifi

catio

n is

ve

ry ra

re.

G4

Are

age

ncie

s re

quire

d to

use

qua

lific

atio

n cr

iteria

rel

ated

to

the

cont

ract

and

to d

iscl

ose

thes

e to

app

lican

ts?

Qua

lific

atio

n cr

iteria

m

ust

be

stat

ed

in

bidd

ing,

pr

equa

lific

atio

n or

RFP

doc

umen

ts a

nd m

ust r

elat

e to

ar

eas

such

as

te

chni

cal

qual

ifica

tions

,

－87－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

28

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

equi

pmen

t, pa

st p

erfo

rman

ce e

tc,

G5

Are

all

qual

ified

firm

s in

vite

d to

bid

? Y

es,

G

6 A

re o

bjec

tive

spec

ifica

tions

or

othe

r te

chni

cal d

ocum

ents

re

quire

d to

cle

arly

des

crib

e th

e su

bjec

t of p

rocu

rem

ent?

Y

es,

PR

R

re

quire

s to

pr

epar

e sp

ecifi

catio

ns,

plan

s,

draw

ings

, de

sign

s or

ot

her

desc

riptio

ns

base

d on

re

leva

nt

obje

ctiv

e ch

arac

teris

tics

and

func

tions

. B

rand

nam

es e

tc o

nly

perm

itted

whe

re

othe

r de

scrip

tion

is

not

poss

ible

an

d w

ith

equi

vale

nts

perm

itted

.

G7

Are

sta

ndar

ds r

equi

red

to b

e us

ed,

whe

ther

nat

iona

l or

in

tern

atio

nal?

Te

chni

cal

spec

ifica

tion

in

the

SB

D

incl

udes

re

leva

nt s

tand

ards

.

G8

Do

tem

plat

es fo

r bid

ding

doc

umen

ts:

cont

ain

clea

r ins

truct

ions

on

the

bidd

ing

proc

ess?

di

sclo

se th

e ev

alua

tion

crite

ria a

nd m

etho

dolo

gy?

cont

ain

draf

t con

tract

s w

hich

are

fair

and

prov

ide

adeq

uate

pro

tect

ion

for t

he a

genc

y?

Yes

, S

BD

tem

plat

es b

ased

on

AD

B/W

orld

Ban

k do

cum

ents

. Fo

r nat

iona

l pro

cure

men

t the

un

it ra

tes

and

pric

es s

hall

be

quot

ed b

y th

e B

idde

r ent

irely

in

N

gultr

um

(Nu)

. Fo

reig

n cu

rren

cy r

equi

rem

ents

sha

ll be

in

dica

ted

and

shal

l be

pa

yabl

e at

the

opt

ion

of t

he

Bid

der

in u

p to

thre

e fo

reig

n cu

rren

cies

. In

ca

se

of

inte

rnat

iona

l pr

ocur

emen

t bi

dder

s ca

n qu

ote

thei

r pr

ices

in

th

ree

freel

y co

nver

tible

fore

ign

curre

ncy.

G

9 A

re fe

es fo

r bid

ding

doc

umen

ts li

mite

d to

cos

ts fo

r cop

ying

an

d de

spat

ch?

The

PR

R m

entio

ns t

hat

the

fees

sho

uld

cove

r th

e pr

epar

atio

n co

st a

nd is

left

to th

e P

A to

det

erm

ine.

Th

e P

A a

genc

y de

fines

the

bid

docu

men

t cos

t.

G10

A

re a

genc

ies

requ

ired

to g

ive

a cl

ear

bidd

ing

dead

line,

ke

ep b

ids

secu

rely

and

reje

ct la

te b

ids?

Y

es,

－88－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

29

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

G11

A

re m

inim

um b

iddi

ng p

erio

ds s

peci

fied?

A

t lea

st 3

0 da

ys fo

r ope

n bi

ddin

g/

14 d

ays

limite

d bi

ddin

g 5

days

lim

ited

enqu

iry

Dire

ct c

ontra

ctin

g m

utua

l agr

eem

ent

For i

nter

natio

nal b

iddi

ng it

is le

ft fo

r the

PA

G12

A

re b

id s

ecur

ities

requ

ired?

If s

o, g

ive

deta

ils o

f rul

es.

Yes

, 1%

-2%

of t

he e

stim

ated

cos

t B

id s

ecur

ities

fro

m f

orei

gn b

anks

to

be c

ount

er-

guar

ante

ed b

y a

Bhu

tane

se b

ank.

B

id s

ecur

ity f

orfe

ited

for

with

draw

al,

refu

sing

an

arith

met

ic c

orre

ctio

n, f

ailin

g to

sig

n a

cont

ract

or

prov

ide

perfo

rman

ce s

ecur

ity,

G13

A

re p

ublic

bid

ope

ning

s re

quire

d?

Bid

s to

be

open

ed a

t th

e tim

e an

d pl

ace

in t

he

bidd

ing

docu

men

ts, i

mm

edia

tely

afte

r th

e de

adlin

e in

the

pres

ence

of b

idde

rs’ r

epre

sent

ativ

es,

Not

ed t

hat

usua

l pr

actis

e is

no

t to

dis

tribu

te b

id-o

peni

ng

min

utes

so

if bi

dder

s do

not

at

tend

are

not

inf

orm

ed t

he

outc

ome

of t

he b

id o

peni

ng

cere

mon

y.

G14

Is

ev

alua

tion

base

d on

th

e cr

iteria

in

th

e bi

ddin

g do

cum

ent?

Y

es, e

valu

atio

n cr

iteria

are

laid

dow

n in

the

bidd

ing

docu

men

t,.

G15

Is

aw

ard

to th

e lo

wes

t eva

luat

ed re

spon

sive

bid

? Y

es,

G

16

Are

neg

otia

tions

pro

hibi

ted?

N

egot

iatio

ns n

ot c

over

ed in

PR

R.

Bas

ical

ly n

egot

iatio

ns i

s no

t al

low

ed

in

com

petit

ive

tend

er

alth

ough

it

is

not

expr

essl

y m

entio

ned

in P

RR

20

09

but

this

do

es

not

prec

lude

th

e ag

enci

es

to

seek

cla

rific

atio

ns t

o he

lp in

cl

arify

ing

doub

ts a

t th

e tim

e of

ev

alua

tions

an

d ar

ithem

atic

al c

orre

ctio

ns.

－89－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

30

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

H

Proc

urem

ent P

roce

ss fo

r Con

sulta

ncy

Serv

ices

H

1 A

re T

OR

requ

ired

whi

ch c

lear

ly d

escr

ibe

obje

ctiv

es, t

asks

an

d ou

tput

s of

the

assi

gnm

ent?

R

FP to

con

tain

TO

R w

ith n

atur

e, ti

me

and

plac

e of

se

rvic

es, t

asks

and

exp

ecte

d ou

tput

s,

H2

Are

ag

enci

es

requ

ired

to

adve

rtise

pr

ocur

emen

t op

portu

nitie

s w

idel

y, w

heth

er n

atio

nally

or i

nter

natio

nally

?

Yes

Th

is

diffe

rs

from

JI

CA

gu

idel

ines

, w

here

sh

ortli

sts

can

be

deve

lope

d w

ithou

t ad

verti

sing

to re

ques

t EO

Is.

H3

Is s

hortl

istin

g ba

sed

on o

bjec

tive

eval

uatio

n of

EO

Is o

r ot

her a

ppro

pria

te s

ourc

es?

Eva

luat

ion

of

EO

Is

base

d on

qu

alifi

catio

n,

expe

rienc

e an

d ca

paci

ty

in

EO

Is.

Ren

owne

d co

nsul

tant

s w

ho d

id n

ot s

ubm

it E

OIs

may

als

o be

in

clud

ed in

the

shor

tlist

, Sho

rtlis

t of 3

-6 fi

rms.

H4

Do

tem

plat

es fo

r RFP

doc

umen

ts:

cont

ain

clea

r ins

truct

ions

on

the

bidd

ing

proc

ess?

di

sclo

se th

e ev

alua

tion

crite

ria, w

eigh

ting,

m

etho

dolo

gy a

nd a

ny m

inim

um th

resh

olds

? co

ntai

n dr

aft c

ontra

cts

whi

ch a

re fa

ir an

d pr

ovid

e ad

equa

te p

rote

ctio

n fo

r the

age

ncy?

Yes

. G

ives

de

tails

on

R

FP,

incl

udin

g st

atin

g cr

iteria

, wei

ghts

and

sel

ectio

n m

etho

ds.

Sta

ndar

d R

FP t

empl

ates

bas

ed o

n W

orld

Ban

k do

cum

ents

Not

ed w

eigh

ting

ofte

n 60

%

tech

nica

l an

d 40

% f

inan

cial

w

hich

put

s m

ore

emph

asis

on

fin

anci

al t

han

is t

ypic

al

unde

r int

erna

tiona

l nor

ms

H5

Are

age

ncie

s re

quire

d to

giv

e a

clea

r bi

ddin

g de

adlin

e,

keep

pro

posa

ls s

ecur

ely

and

reje

ct la

te p

ropo

sals

? R

FP re

quire

s cl

ear d

eadl

ine.

R

FP re

quire

s re

ject

ion

of la

te p

ropo

sals

.

H6

Are

min

imum

bid

ding

per

iods

spe

cifie

d?

At l

east

30

days

,.

H7

Are

pu

blic

bi

d op

enin

gs

requ

ired

for

tech

nica

l an

d/or

fin

anci

al p

ropo

sals

, with

ade

quat

e no

tific

atio

n fo

r fin

anci

al

open

ings

?

RFP

add

ress

es te

chni

cal o

peni

ng, R

FP a

ddre

sses

fin

anci

al o

peni

ng.

RFP

req

uire

bot

h te

chni

cal a

nd f

inan

cial

ope

ning

s in

the

pres

ence

of b

idde

rs’ r

epre

sent

ativ

es

H8

Is

tech

nica

l ev

alua

tion

base

d on

th

e cr

iteria

an

d w

eigh

tings

in t

he R

FP d

ocum

ent,

with

a m

inim

um q

ualit

y th

resh

old?

Yes

, RFP

C

riter

ia m

ay i

nclu

de e

xper

ienc

e of

firm

, pr

opos

ed

met

hodo

logy

, qu

alifi

catio

ns

of

key

hum

an

reso

urce

s, k

now

ledg

e an

d te

chno

logy

tran

sfer

and

,

－90－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

31

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

for i

nter

natio

nal p

ropo

sals

, H

9 A

re a

genc

ies

requ

ired

to k

eep

finan

cial

bid

s se

aled

unt

il th

e tim

e fo

r fin

anci

al o

peni

ng a

nd e

valu

atio

n?

Yes

,.

H10

Is

fina

ncia

l eva

luat

ion

and

rank

ing

of p

ropo

sals

bas

ed o

n th

e m

etho

dolo

gy a

nd w

eigh

tings

in th

e R

FP?

Yes

H11

Is

aw

ard

to th

e hi

ghes

t ran

ked

prop

osal

, acc

ordi

ng to

the

met

hodo

logy

spe

cifie

d in

the

RFP

? Y

es,

H12

A

re n

egot

iatio

ns li

mite

d to

the

first

ran

ked

cons

ulta

nt a

nd

to a

reas

oth

er th

an fe

e ra

tes?

Y

es, n

egot

iatio

ns o

nly

with

the

sele

cted

con

sulta

nt.

Can

neg

otia

te w

ith t

he n

ext

rank

ed c

onsu

ltant

if

nego

tiatio

ns fa

il.

Neg

otia

tions

lim

ited

to T

OR

, sc

ope

of s

ervi

ces,

re

ports

and

faci

litie

s pr

ovid

ed b

y th

e P

A. F

ee ra

tes

can

only

be

nego

tiate

d fo

r Q

BS

. R

eim

burs

able

s ca

n be

neg

otia

ted

unde

r all

met

hods

. .

I C

ontr

act A

war

d an

d M

anag

emen

t

I1

Is

any

not

ifica

tion

to u

nsuc

cess

ful

bidd

ers

and

stan

dstil

l pe

riod

requ

ired

prio

r to

awar

d?

Yes

, not

ice

of in

tent

of a

ccep

tanc

e se

nt to

sel

ecte

d bi

dder

and

info

rmat

ion

on th

e se

lect

ed b

idde

r se

nt

to o

ther

bid

ders

with

in 7

day

s of

sel

ectio

n of

low

est

eval

uate

d bi

d. S

elec

ted

bid

can

only

be

acce

pted

af

ter

7 da

ys

if no

ap

plic

atio

n fo

r re

view

is

su

bmitt

ed.

PA

ar

e re

quire

d to

no

tify

bidd

ers

in

writ

ing

of

the

awar

d de

cisi

on

in

thei

r re

spec

tive

web

site

s w

ithin

15

day

s of

its

such

dec

isio

n..

I2

Is th

e ag

ency

requ

ired

to d

ebrie

f uns

ucce

ssfu

l bid

ders

and

pu

blis

h de

tails

of t

he c

ontra

ct a

war

d?

Yes

. Th

e ag

ency

inf

orm

s th

e un

succ

essf

ul a

nd

succ

essf

ul b

idde

rs.

Not

ed

is

no

publ

ic

anno

unce

men

t of

C

ontra

ct

awar

d.

I3

Wha

t pr

oced

ures

an

d co

ntro

ls

appl

y to

co

ntra

ct

amen

dmen

ts a

nd v

aria

tions

? C

ontra

cts

can

be a

men

ded

by w

ritte

n co

nsen

t of

bo

th p

artie

s, p

rovi

ding

the

bas

ic s

cope

of

cont

ract

is

no

t ch

ange

d,.

No

spec

ific

prov

isio

ns

on

appr

oval

s in

PR

R.

In c

ases

of

unfo

rese

en c

ircum

stan

ces,

var

iatio

n

－91－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

32

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

orde

rs u

p to

20%

may

be

issu

ed w

ithou

t co

ntra

ct

amen

dmen

t. V

aria

tion

orde

rs

over

20

%

requ

ire

appr

oval

from

the

com

pete

nt a

utho

rity.

I4

W

hat

disp

ute

reso

lutio

n pr

oced

ures

ar

e in

clud

ed

in

cont

ract

s?

Arb

itrat

ion

for

good

s, c

onsu

ltanc

y an

d w

orks

as

prov

ided

in

th

e co

ntra

ct

or

prev

ailin

g la

w.

Adj

udic

atio

n,

disp

ute

reso

lutio

n co

mm

ittee

or

ar

bitra

tion

for w

orks

, dep

endi

ng o

n va

lue.

J R

ecor

d K

eepi

ng a

nd C

omm

unic

atio

ns

J1

Is th

e ag

ency

requ

ired

to m

aint

ain

reco

rds

of p

rocu

rem

ent

activ

ities

? G

ive

deta

ils o

f the

con

tent

s re

quire

d R

ecor

ds t

o be

kep

t un

til t

he c

ompl

etio

n of

fin

al

audi

ting.

P

rior

appr

oval

to

be

so

ught

be

fore

de

stro

ying

reco

rds.

No

filin

g or

rec

ord

keep

ing

guid

elin

es

as

to

how

do

cum

ents

are

to b

e ke

pt

J2

Are

com

mun

icat

ions

with

bid

ders

and

sup

plie

rs r

equi

red

to b

e in

writ

ing

or c

onfir

med

in w

ritin

g?

Com

mun

icat

ions

to b

e in

writ

ing,

J3

Mus

t co

mm

unic

atio

ns s

uch

as b

id c

larif

icat

ions

and

pre

-bi

d m

eetin

g m

inut

es b

e se

nt to

all

bidd

ers?

B

id c

larif

icat

ions

and

am

endm

ents

mus

t be

sent

to

all b

idde

rs,

Not

ice

of c

ance

llatio

n m

ust

be s

ent

to

all b

idde

rs,

K

Bid

der C

ompl

aint

s

K

1 Is

the

re a

ny m

echa

nism

ena

blin

g bi

dder

s to

cha

lleng

e pr

ocur

emen

t dec

isio

ns?

And

to a

ppea

l the

resp

onse

? Y

es,

The

bidd

er a

t the

tim

e of

bid

ope

ning

can

regi

ster

a

com

plai

nt in

the

com

plai

nt re

gist

er

Bid

der a

lso

with

in 2

0 da

ys c

an a

ppea

l to

the

PA

; B

idde

r if

not

satis

fied

can

appe

al

to

the

Inde

pend

ent

Rev

iew

Bod

y es

tabl

ishe

d by

Min

istry

of

Fin

ance

; B

idde

r not

sat

isfie

d w

ith In

depe

nden

t Rev

iew

Bod

y ca

n ap

peal

to C

ourt.

K2

Are

com

plai

nts

and

appe

als

hear

d by

an

inde

pend

ent

body

? B

idde

r no

t sa

tisfie

d w

ith P

as d

ecis

ion

can

appe

al

to in

depe

nden

t Rev

iew

Bod

y an

d fin

ally

to C

ourt

K3

Doe

s an

y co

mpl

aint

s m

echa

nism

fo

llow

ap

prop

riate

C

ompl

aint

s to

be

subm

itted

to

the

PA

with

in 2

0

－92－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Bh

utan

Cr

own

Agen

ts

33

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

proc

edur

es

in

term

s of

tim

esca

les,

do

cum

enta

tion

requ

irem

ents

etc

? da

ys o

f the

bid

der b

eing

aw

are

of th

e er

ror/b

reac

h.

PA

sha

ll gi

ve d

ecis

ion

with

in 1

5 da

ys

Com

plai

nant

s sh

all a

ppea

l to

Inde

pend

ent

Rev

iew

B

ody

with

10

days

of t

he d

ecis

ion

of th

e P

A.

L Pr

even

tion

of C

orru

ptio

n

L1

Is

the

re a

cle

ar p

olic

y an

d ru

les

proh

ibiti

ng c

orru

pt a

nd

fraud

ulen

t pra

ctic

es?

Yes

, B

iddi

ng d

ocum

ents

con

tain

inf

orm

atio

n th

at

bids

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－94－


T: +44 (0)20 8643 3311 F: +44 (0)20 8643 8232


www.crownagents.com

－95－

APPENDIX 3 : STUDY OF NATIONAL PROCUREMENT SYSTEM (NEPAL)

－97－

Study of National Procurement System of Nepal


Report June 2012


－99－

Study of

Table

List of Ab

Sectio

Section

1. Stud

2. Pur

3. Met

Section

4. Ove




Section

8. Rec8.1 Le8.2 Ins8.3 Ca8.4 Co

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System of Ne

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－101－

Study of

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－102－

Study of National Procurement System of Nepal Crown Agents

1


－103－


2



2. Purpose of Report As part of the study, this report provides an overview of the national procurement system of Nepal. It provides a general summary of the government system, based primarily on the legal and regulatory framework. Details on specific EAs can be found in separate capacity assessment reports.




This study of the national procurement system for Nepal is based on:

The Public Procurement Act and Regulations

The website of the Public Procurement Monitoring Office (PPMO) at http://www.ppmo.gov.np/

The Nepal Public Procurement Strategic Framework (NPPSF) of July 2010

The completed questionnaire for Nepal is included at Appendix A. Section 2 of this report summarises the findings of the study, highlighting areas where national rules or practices differ significantly from JICA Guidelines. Section 3 provides brief recommendations for strengthening the national procurement system.

－104－


3


－105－


4

4. Overview of Procurement System and Reforms The Government of Nepal (GON) is undertaking the reform of its public procurement system. In 2007, it modernised the legal framework through the issue of the Public Procurement Act and Regulations, also establishing the PPMO as a body to regulate and monitor public procurement in Nepal. Procurement responsibility is decentralised to each public entity (PE); although the majority of procurement expenditure takes place within central government ministries, there are approximately 40,000 PEs in Nepal, including those at local level.

The process of procurement reform continues, guided by the Nepal Public Procurement Strategic Framework for 2010-2013. Among other initiatives, the GON is implementing electronic Government Procurement (e-GP), with the first phase due for completion in mid-2012. The GON is being supported by various development partners, including the Asian Development Bank and World Bank.


5.1 Legal Framework

The legal framework for public procurement in Nepal was established in 2007, but has recently been revised and is likely to undergo further revision in future. The legal framework currently consists of:

The Public Procurement Act, 2007 (PPA)

The Public Procurement Regulations, 2007 and Public Procurement (Third Amendment) Regulations 2011 (PPR)

Amendments to the PPA have been recommended. Various other laws in Nepal contain provisions on procurement and were not repealed by the PPA; this creates confusion among procurement staff and provides potential loopholes to avoid application of the PPA.

These legal documents are intended to be supplemented by further guidance documents, but with the exception of a directive on price adjustment, most have not yet been issued. The need for procurement and contract manuals has been recognised and guidelines are under preparation.

Some standard bidding documents (SBDs) and standard forms have been issued by PPMO, but some documents and templates still need to be completed and/or translated to be available in both Nepali and English.

Despite ongoing work to complete and further update the legal framework, enforcement of the PPA and PPR are reported to be weak.


The PPA covers all public entities including central government entities, many companies and academic bodies (subject to with full or majority government ownership or control), local bodies and bodies with government loans or grants. As individual schools and health clinics, as well as local bodies at village, municipality and district levels, are separate public entities, there are approximately 40,000 PEs with responsibility for procurement in Nepal. This brings challenges in monitoring compliance with the PPA, as well as questions of the suitability of the legal framework for smaller, lower spending PEs. PPMO has already noted the need to adapt guidelines and documents to ensure their suitability for the local government context.

The PPA applies to goods, construction, consultancy services and other services, with exceptions only for security, strategic or defence procurement when so decided by government. This security exception is potentially open to abuse and is no longer recommended in standards such as the 2011 Model Law on Public Procurement issued by the United Nations Commission on International Trade Law, but remains common across the world.

－106－


5

There is a further exception to application of the PPA where procurement must follow donor guidelines under a financing agreement. This is important for implementation of ODA by JICA, allowing JICA Guidelines to prevail over national law.


Procurement is decentralised, with the chief of each PE responsible for ensuring procurement activities are carried out and the central regulatory body, the PPMO, providing oversight.


Each PE is required to establish a procurement unit or designate a unit with responsibility for procurement and contract management. PEs also form evaluation committees. Staff conducting procurement are required to have qualifications prescribed by the PPMO and knowledge or training on procurement; PPMO has reported in adequate capacity in many PEs and intends to initiate an accreditation programme, as well as capacity needs assessment, great training and establishment of a national procurement training system.

PPMO provides central support by establishing databases of suppliers and average prices for common user items. PPMO also intends to develop guidelines for framework contracts, to facilitate their use for common user items. Aside from these information functions, PPMO is prohibited from operational involvement with procurement processes (other than those to meet its own needs) or the settlement of procurement disputes.

Procurement units must generally obtain approvals for procurement from the chief of the PE. The chief of the PE approves bidding documents, while evaluations are approved according to value. The head of the PE has responsibility for financial management, in addition to procurement.


PPMO was established in 2007 by the PPA as a body under the Office of the Prime Minister and Council of Ministers. It is primarily a regulatory body, with functions in the following areas:


Regulatory framework: issuing guidelines, manuals and SBDs and advising PEs on their interpretation

Monitoring: collecting procurement and contract implementation statistics, requiring reports from PEs, monitoring and auditing procurement



Regulatory: blacklisting suppliers and acting as Secretariat to the Review Committee

This range of functions is consistent with those of regulatory bodies worldwide and the prohibition on involvement in the procurement of other PEs avoids any conflict with its regulatory functions. However, while legal requirements are adequate, the PPMO reports inadequate capacity and a need for institutional restructuring to effectively fulfil its mandate.

PPMO reports that inadequate monitoring is currently taking place due to a lack of trained staff, resources and data. It is planning a Procurement Monitoring Management Information system. In addition to PPMO’s monitoring functions, the Office of the Auditor General audits procurement and publishes a specific guide on procurement audit.



There are no restrictions on participation in public procurement based on nationality, except for procurement of rations (food items), where contracts can only be concluded with Nepalese

－107－


6

citizens. Discrimination is prohibited as a general principle, but price preferences are permitted and Nepali goods will be purchased in preference to foreign goods at prices up to 10% more expensive. For consultancy services, shortlisted international consultants must have a local agent.

The PPA contains no requirements for suppliers to register as a condition of participation in competitive bidding or sealed quotations procurement. However, PEs are required to prepare standing lists of suppliers which are used for low value direct procurement. The list must be advertised and updated annually.

Suppliers may be blacklisted by PPMO for a period of 1-3 years and a list of blacklisted suppliers is displayed on PPMO’s website. Grounds for blacklisting include breach of the code of conduct, failure to sign a contract, substantial defects in contract implementation, conviction of a criminal offence, misrepresentation or failure to pay a loan.


PEs are required to prepare:

a master procurement plan for procurements with a duration of more than one year or annual procurement with a value greater than Rs 100m, which must be updated each fiscal year;

an annual procurement plan, based on the master procurement plan, for all procurement with a value greater than Rs 1m, as part of the budget process.

The contents of procurement plans are specified in detail, including timings, costs, methods, packaging, any need for pre-qualification and types of contract.

PEs are also required to prepare cost estimates for procurement with a value greater than Rs 25k. Written approval and confirmation of funding is required before the procurement proceeds.

Despite these rules, the PPMO reports that most PEs do not have master or annual procurement plans in place, that there is poor correlation between procurement and budgeting and that PEs have weak skills in preparing cost estimates.


The PPA defines a range of procurement methods, with a preference for competitive bidding and various methods suitable for high and low values and for consultancy services, as well as goods, works and non-consultancy services. Thresholds are provided in the PPR and the splitting of requirements to avoid these thresholds is prohibited. The main permitted methods for goods, works and non-consultancy services are:

Open national bidding, the preferred method, which may involve one or two-stage bidding, the latter for complex requirements.

Open international bidding, which is required where the items are not available at competitive price in Nepal, no bids were received under national bidding, where a donor required procurement from a foreign source or the items are complex and requires international bidding. Documents must be in English for this method.

Sealed quotations for procurement up to Rs 1m.

Direct purchase, which is limited to specific circumstances, some of which require approval by a government committee. It is permitted for procurement up to Rs 150k, where only one supplier can meet the need or has exclusive rights, for additional purchases up to 30% of the contract value where they cannot be separated from the initial purchase or where a consultant has unique qualifications or must continue earlier work.

Through participation of users’ committee or beneficiary group where this increases economy, quality or sustainability.

Force account for regular petty work of an ordinary nature. There is no restricted bidding method which would be equivalent ot the Limited International Bidding method in the JICA Guidelines.

－108－


7

The main permitted methods for consultancy services are:

Competitive proposals, which may be national or international and with or without publication of a notice requesting expressions of interest. Further details are provided in section 6.5 below.

Direct negotiations which is permitted for services under Rs 100k or, with the approval of a higher level official, in other circumstances.

The PPR also allow procurement using the “other method”, with consultants appointed based on qualifications where a high level of expertise is required, there are few qualified consultants, the consultancy is for a short period or there is inadequate time for a full procurement process.

Alternative rules are also provided in the PPA for:

Ration procurement for foodstuffs, principally for the army and police; and

Work by Non-Governmental Organisations in order to achieve promptness, effectiveness and economy for works such as public awareness or empowerment.

Immediate procurement is permitted in special circumstances, such as natural disasters or war.



Bidding may be with or without prequalification. Prequalification is mandatory for large and complex contracts, as determined by PPMO guidance and is permitted for other procurement where considered appropriate by the PE. Qualification requirements may not be applied to construction of a value less than Rs 6m.


Invitations to bid or prequalify must be published in daily newspapers of national circulation (or internationally for open international bidding) and on the website of the PE or PPMO. Invitation for sealed quotations must be published in national or local newspaper. Where pre-qualification is used, all qualified applicants must be invited to bid.


PEs are required to prepare specifications, plans, drawings, designs or other descriptions based on relevant objective characteristics and functions. Particular brands or trademarks are only permitted where objective description is not possible and on the basis that equivalent products are also acceptable.


Bidders may be charged fees for bidding and prequalification documents, which are specified in the PPR and based on the cost incurred in preparation of the documents.




15 days for sealed quotations.

Bid securities are required with a value of at least 2.5% of the bid value. Bid securities from foreign banks must be counter-guaranteed by a Nepali bank. Conditions for forfeiture of bid securities are wider than usually seen; in addition to the internationally accepted conditions of bid withdrawal, refusing an arithmetic correction, failing to sign a contract or to provide performance

－109－


8

security, forfeiture is possible for changing price or other substantive matter when providing clarifications or breaching rules on conduct. Conditions relating to substantive changes and breach of conduct rules are subjective and could be open to abuse.

Bids must be opened in the presence of bidders’ representatives at the time and place stated in the bidding documents, immediately after the deadline for bid submission.

6.4.3 Evaluation


Award is to the lowest evaluated substantially responsive bid, although a preference may be given to Nepalese bidders (or foreign bidders in joint venture with a Nepalese bidder) under international bidding.

Under the sealed quotations method, the lowest evaluated quotation fulfilling specified requirements that is within the cost estimate is accepted.

There are no rules on negotiation in the PPA and it is thus presumably prohibited, although no explicit prohibition is stated.



Under the competitive proposals method, a notice requesting expressions of interest (EOIs) must be published where the procurement is over Rs 1m. The notice will normally be published nationally, but international publication is required where the procurement is over Rs 30m, the services are not available at a competitive price from more than one consultant in Nepal, no proposals were received following national advertising or where a donor requires procurement from a foreign source. International notices must be in English.

The evaluation of EOIs must be based on qualifications, experience and capacity. Shortlists must normally consist of 3-6 firms and PEs must re-advertise if a shortlist of at least 3 is not developed. Shortlists can include renowned consultants who did not submit EOIs, if they are contacted by the PE.

The shortlist may be developed without advertising where the procurement is under Rs 1m.

6.5.2 Request for and Submission of Proposals PEs are required to prepare terms of reference (TOR) stating the nature, time and place of services, tasks and expected outputs.

Standard templates are provided for request for proposals (RFP) documents with specified content including TOR, instructions on the submission of proposals, the selection method, evaluation criteria, minimum technical pass mark and weightings and the terms and conditions of the contract. The PPR specific the permitted types of contract.

A deadline for receipt of proposals must be set, with proposals kept unopened until this time and any late proposals rejected. The PPA sets minimum bidding periods of at least 30 days. Both technical and financial openings must be held in the presence of bidders’ representatives and financial proposals must be retained unopened until the notified time for the financial opening.


Technical evaluation must be based on the criteria and weightings in the RFP document, with a minimum quality threshold set. Criteria may include experience of the firm, proposed methodology, qualifications of key human resources, knowledge and technology transfer and, for international proposals, key Nepalese human resources.


the Quality and Cost method;

－110－


9

the Quality method – for services which are exceptionally complex or have considerable impact on future projects or the national economy;

the Fixed Budget method; or

the Least Cost method.

The Quality and Cost and Quality methods are equivalent to JICA selection procedures. The Fixed Budget and Least Cost methods are not contained in JICA Guidelines, but modelled on World Bank guidelines.

Negotiations may only be held with the selected consultant, although the PE can negotiate with the next ranked consultant if these negotiations fail. Technical negotiations are limited to the TOR, scope of services, reports and facilities provided by the PE. Fee rates can only be negotiated where the Quality method is used, but reimbursables can be negotiated under all selection methods.


Notice of intent of acceptance must be sent to the selected bidder within 7 days of selection of lowest evaluated bid or successful proposal and information on the selected bidder (and the price of the selected bid for goods, works or non-consultancy services) must also sent to other bidders. The selected bid or proposal can only be accepted after a period of 7 days if no application for review is submitted. A public notice of procurement contracts must be published after conclusion of a contract.

PEs must communicate the grounds for rejection of bids to any bidder for goods, works and other services who requests this within 30 days of the notice of intent of acceptance. For consultancy services, information on the shortlist must be sent to all consultants who submitted EOIs and the financial proposals of consultants failing to reach the technical pass mark must be returned, with a notice stating the grounds for failure.

Contracts may be amended by written consent of both parties, providing the basic scope of the contract is not changed. The PPA contains no specific provisions on approvals for contract amendments. In cases of unforeseen circumstances, variation orders of up to 15% may be issued without a contract amendment. Variation orders over 15% require the approval of the Council of Ministers.

Price adjustment is permitted for contracts with a duration of over 15 months. The PPMO directive on price adjustment allows price escalation in contracts less than 15 months in cases where unusual conditions increase market prices by more than 10%.

Contracts must state the mechanism for settlement of disputes. For goods, consultancy and non-consultancy services, this is arbitration as provided in the contract or prevailing law. For works, adjudication, a dispute resolution committee or arbitration may be used, depending on the contract value.


PEs are required to maintain a comprehensive list of records, using formats prepared by PPMO. These records must be kept for a period of at least 7 years from completion of procurement proceedings.

Communications must be in writing, but procurement transactions may be carried out through electronic communications where permitted by government and subject to requirements of security, access, preserving content and not otherwise contravening the PPA.

Many key communications must be sent to all bidders, including the list of pre-qualified bidders, bid clarifications and amendments and notices of cancellation.

－111－


10



The PPA establishes a mechanism for bidders to challenge procurement decisions, allowing bidders to file an application for review of any error or breach of duty by a PE in procurement proceedings. The right to be review must be stated in bidding documents. The review mechanism has the following two levels:

Applications must first be submitted to the Chief of the PE, unless the contract is already in force.

For any procurement of a value greater than Rs 30m, an application may be submitted to the Review Committee where the Chief of PE does not decide on time, the applicant is not satisfied with the PE’s decision or the contract is in force.

The Review Committee is appointed by Government and includes a former senior judge or civil servant, retired government engineer and person with procurement experience. No serving government staff are permitted on the committee. PPMO provide secretariat services to the Review Committee.

Complaints must be submitted to the PE within 7 days of the bidder being aware of the error or breach. Complaints or appeals to the Review Committee must be submitted within 7 days of the disputed decision by the PE or failure of the PE to issue a decision or within 30 days of conclusion of the contract. A security deposit (bank guarantee or cash deposit) of 0.5% of the bid value is payable.

The Chief of PE must suspend procurement and issue a decision within 5 days, stating how procurement is to proceed if there has been a breach.

The Review Committee must decide within 30 days. It must request information from the PE within 3 days, with 3 days for the PE to respond. It may hold hearings with the parties. Prior to contract award, the Review Committee may annul or prohibit incorrect decisions or order re-evaluation in cases of breach. After contract award, compensation may be awarded. The PE must suspend procurement during committee proceedings, unless it certifies that procurement is urgent.

The first review by the Chief of the PE provides the opportunity for correction of mistakes, but cannot be considered an independent review. Very few complaints are submitted to the Review Committee due to the high threshold and high deposit requirement. In practice, the majority of procurement complaints are submitted to the courts or to anti-corruption organisations, such as the Commission on Investigation of Abuse of Authority and National Vigilance Centre.

The public procurement system in Nepal therefore lacks an effective mechanism for challenging procurement decisions and falls far short of international standards, such as those set by the United Nations Convention Against Corruption (which the Government of Nepal has ratified) which requires an effective system of review and appeal. Timescales for both submission of complaints and the issue of decisions are short compared to many other countries.


The PPA contains codes of conduct for public officials involved in public procurement and for bidders. The former requires officials to act impartially and in the public interest, avoid conflict of interest, maintain confidentiality and not commit corrupt, fraudulent or collusive practices. The code of conduct for bidders covers bribery, misrepresentation, coercion, collusion, interfering with other bidders, seeking to influence the PE and conflict of interest. The PPA also requires bidding documents to state that bids will not be processed where there is conflict of interest or legal action for fraud or corruption and requires bids to be rejected in cases of collusion.

Despite these rules, PPMO report widespread collusion and intimidation at time of bid submission with ineffective action to mitigate.

－112－


11


－113－


12

8. Recommendations The following sections make recommendations for the strengthening of the national procurement system of Nepal. Many are already recognised by the Government of Nepal, with actions included in the NPPSF.

8.1 Legal Framework

Complete all outstanding work on the revision of the legal framework. As well as addressing identified weaknesses in the PPA, such as the complaints mechanism as discussed in section 8.4 below, the revision should:

ensure that the PPA and other related laws are aligned to eliminate conflicts and the resulting confusion or loopholes;


ensure that all documents are available in both Nepali and English to facilitate their use;

ensure that rules, guidance documents and templates are suitable and proportionate for smaller PEs, such as local government bodies, schools and clinics. .


Strengthen PPMO to ensure it is able to fulfil its mandate of regulating and monitoring public procurement, as well as building capacity among PEs. This should be achieved through restructuring of PPMO and recruitment of additional staff as necessary, as well as developing the skills of current staff and ensuring it has all necessary tools. Tools and training for monitoring and auditing tasks are one priority.


Develop capacity among all government procurement staff to ensure they have good procurement skills and are able to comply with the legal framework. Capacity development initiatives should differentiate between different procurement roles, including practitioners in procurement units, those responsible for approvals, including the chief of the PE and staff with technical involvement, such as the preparation of specifications and terms of reference and participation in evaluation committees.


Significantly revise the complaints mechanisms to ensure access by bidders to an effective system of review and appeal. This should include the abolition of value thresholds and reduction of fees for the review committee to ensure genuine access to independent review, as well as appeal to the courts. Timescales for review and the rights of bidders should be revised in line with international standards; the UNCITRAL Model Law on Public Procurement provides a useful template.

－114－


13


－115－

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proc

urem

ent l

aw /

regu

latio

ns /

guid

elin

es /

man

ual?

Pub

lic P

rocu

rem

ent A

ct, 2

007

(PP

A)

Pub

lic P

rocu

rem

ent R

egul

atio

ns, 2

007

and

Pub

lic P

rocu

rem

ent (

Third

Am

endm

ent)

Reg

ulat

ions

201

1 (P

PR

) P

rocu

rem

ent a

nd c

ontra

ct m

anua

ls n

eede

d;

guid

elin

es b

eing

pre

pare

d O

ne d

irect

ive

is o

n P

PM

O’s

web

site

on

pric

e ad

just

men

t

PP

MO

repo

rts th

at

enfo

rcem

ent o

f PP

A a

nd

PP

R is

wea

k R

ecom

men

datio

ns fo

r am

endm

ent o

f PP

A b

eing

pr

epar

ed b

ut n

ot y

et in

fo

rce.

W

ork

on g

uide

lines

etc

ne

eds

to b

e co

mpl

eted

A

2 A

re th

ere

stan

dard

bid

ding

doc

umen

ts a

nd/o

r any

oth

er

stan

dard

form

s or

tem

plat

es?

If so

, are

they

bas

ed o

n a

parti

cula

r tem

plat

e, s

uch

as

dono

r doc

umen

ts?

SB

Ds

for g

oods

(IC

B a

nd N

CB

), w

orks

(var

ious

va

lues

and

met

hods

plu

s pr

equa

lific

atio

n) a

nd

cons

ulta

ncy

serv

ices

(var

ious

val

ues

and

cont

ract

type

s) o

n P

PM

O w

ebsi

te

Wor

ks IC

B >

Rs

500m

(app

rox

£3.7

m)u

ses

FID

IC M

DB

har

mon

ised

con

stru

ctio

n co

ntra

ct.

Oth

er S

BD

s m

ostly

use

har

mon

ised

MD

B o

r W

orld

Ban

k do

cum

ents

A

lso

tem

plat

es fo

r sea

led

quot

atio

ns (g

oods

and

Wor

k on

SB

Ds

need

s to

be

com

plet

ed.

Tem

plat

es a

re re

quire

d fo

r bi

d op

enin

gs, e

valu

atio

n re

ports

, neg

otia

tions

re

ports

and

not

ices

of

awar

d

－116－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

15

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

wor

ks) a

nd d

irect

pur

chas

e (g

oods

and

co

nsul

tanc

y)

A fe

w s

tand

ard

form

s ar

e on

PP

MO

web

site

e.g

. pr

ocur

emen

t pla

n te

mpl

ates

B

Sc

ope

of A

pplic

atio

n

B

1 W

ho d

oes

the

lega

l fra

mew

ork

appl

y to

? i.e

. doe

s it

cove

r par

asta

tals

and

sta

te o

wne

d en

terp

rises

or o

nly

gove

rnm

ent m

inis

tries

?

Wid

e ap

plic

atio

n. s

3, P

PA

and

s2(

b), P

PA

A

pplie

s to

pub

lic e

ntiti

es (P

Es)

whi

ch in

clud

e

gove

rnm

enta

l ent

ities

(min

istri

es,

depa

rtmen

ts, c

onst

itutio

nal b

odie

s, c

ourts

et

c)

co

mpa

nies

with

full

or m

ajor

ity g

over

nmen

t ow

ners

hip

or c

ontro

l

acad

emic

bod

ies

with

full

or m

ajor

ity

gove

rnm

ent f

undi

ng

lo

cal b

odie

s (v

illag

e, m

unic

ipal

ity o

r dis

trict

de

velo

pmen

t com

mitt

ees)

bodi

es w

ith g

over

nmen

t loa

ns o

r gra

nts

an

y ot

her b

ody

spec

ific

by g

over

nmen

t.

PP

MO

inte

nds

to a

dapt

gu

idel

ines

and

doc

umen

ts

to e

nsur

e th

ey a

re s

uita

ble

for t

he lo

cal g

over

nmen

t co

ntex

t.

B2

Doe

s th

e le

gal f

ram

ewor

k ap

ply

to a

ll pr

ocur

emen

t or

are

ther

e ex

cept

ions

? C

over

s go

ods,

con

stru

ctio

n, c

onsu

ltanc

y se

rvic

es a

nd o

ther

ser

vice

s E

xcep

tions

for s

ecur

ity, s

trate

gic

or d

efen

ce

proc

urem

ent w

hen

deci

ded

by g

over

nmen

t, s6

7(1)

(a)

The

secu

rity

exce

ptio

n ca

n be

abu

sed

but i

s fa

irly

com

mon

acr

oss

the

wor

ld.

B3

Wha

t pro

visi

on d

oes

the

lega

l fra

mew

ork

mak

e fo

r ap

plic

atio

n of

alte

rnat

ive

dono

r rul

es?

Exc

eptio

n to

use

of P

PA

whe

re u

se o

f a d

onor

’s

guid

elin

es a

re re

quire

d by

agr

eem

ent w

ith a

do

nor,

s67(

1)(b

)

JIC

A c

an re

quire

use

of i

ts

guid

elin

es w

here

spe

cifie

d in

loan

agr

eem

ents

C

In

stitu

tiona

l Fra

mew

ork

C1

Is p

rocu

rem

ent c

entra

lised

or d

ecen

tralis

ed?

i.e. i

s th

ere

any

cent

ral b

ody

resp

onsi

ble

for c

ondu

ctin

g or

D

ecen

tralis

ed, t

he c

hief

of e

ach

PE

is

resp

onsi

ble

for e

nsur

ing

proc

urem

ent a

ctiv

ities

P

PM

O re

port

inad

equa

te

capa

city

of P

Es

－117－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

16

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

appr

ovin

g pr

ocur

emen

t or d

oes

each

age

ncy

do th

is

itsel

f?

are

carr

ied

out,

s7(1

), P

PA

P

PM

O is

est

ablis

hing

dat

abas

es o

f sup

plie

rs a

nd

aver

age

pric

es fo

r com

mon

use

r ite

ms

(NP

PS

F)

C2

Is th

ere

a re

gula

tory

bod

y fo

r pro

cure

men

t? If

so,

wha

t ar

e its

func

tions

? P

ublic

Pro

cure

men

t Mon

itorin

g O

ffice

(PP

MO

) si

nce

2007

. Und

er O

ffice

of t

he P

rime

Min

iste

r an

d C

ounc

il of

Min

iste

rs

Func

tions

def

ined

in s

65, P

PA

and

su

pple

men

ted

in R

ule

144,

PP

R a

nd in

clud

e:

P

olic

y: a

dvis

ing

Gov

ernm

ent o

n pr

ocur

emen

t po

licy,

sub

mitt

ing

annu

al re

ports

, rev

iew

ing

the

syst

em, s

tudy

ing

othe

r sys

tem

s an

d co

ordi

natin

g re

form

s

Reg

ulat

ory

fram

ewor

k: is

suin

g gu

idel

ines

, m

anua

ls a

nd S

BD

s an

d ad

visi

ng P

Es

on

thei

r int

erpr

etat

ion

M

onito

ring:

col

lect

ing

proc

urem

ent a

nd

cont

ract

impl

emen

tatio

n st

atis

tics,

requ

iring

re

ports

from

PE

s, m

onito

ring

and

audi

ting

proc

urem

ent

In

form

atio

n di

ssem

inat

ion:

ope

ratin

g a

proc

urem

ent w

ebsi

te a

nd p

ublis

hing

a

bulle

tin

C

apac

ity b

uild

ing:

arr

angi

ng tr

aini

ng a

nd

othe

r pro

gram

mes

for p

ublic

and

priv

ate

sect

or, a

rran

ging

acc

redi

tatio

n pr

ogra

mm

es

for p

ublic

sec

tor p

rocu

rem

ent s

taff

R

egul

ator

y: b

lack

listin

g su

pplie

rs a

nd a

ctin

g as

Sec

reta

riat t

o th

e R

evie

w C

omm

ittee

P

PM

O n

ot in

volv

ed in

pro

cure

men

t pro

cess

es

(exc

ept i

ts o

wn)

or s

ettli

ng d

ispu

tes

The

PP

MO

see

ms

to h

ave

an a

ppro

pria

te ra

nge

of

func

tions

, in

line

with

thos

e of

regu

lato

ry b

odie

s w

orld

wid

e.

The

proh

ibiti

on o

n in

volv

emen

t in

proc

urem

ent o

f PE

s av

oids

an

y co

nflic

t with

its

regu

lato

ry fu

nctio

ns.

Whi

le th

e le

gal

requ

irem

ents

are

ad

equa

te, t

he P

PM

O

repo

rts in

adeq

uate

ca

paci

ty a

nd a

nee

d fo

r in

stitu

tiona

l res

truct

urin

g

C3

Who

is re

spon

sibl

e fo

r mon

itorin

g or

aud

iting

Th

e P

PM

O. I

ts fu

nctio

ns in

clud

e co

llect

ing

data

, P

PM

O re

port

inad

equa

te

－118－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

17

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

proc

urem

ent?

re

quiri

ng re

ports

from

PE

s, m

onito

ring,

un

derta

king

(or a

rran

ging

) tec

hnic

al a

udits

of

com

plia

nce

and

mak

ing

obse

rvat

ion

visi

ts.

PP

MO

is p

lann

ing

a P

rocu

rem

ent M

onito

ring

Man

agem

ent I

nfor

mat

ion

Sys

tem

(PM

MIS

) with

be

nchm

arks

and

indi

cato

rs

Offi

ce o

f the

Aud

itor G

ener

al a

udits

pro

cure

men

t an

d pu

blis

hes

a sp

ecifi

c gu

ide

on p

rocu

rem

ent

audi

t.

Com

mis

sion

on

Inve

stig

atio

n of

Abu

se o

f A

utho

rity

(CIA

A) w

ill in

vest

igat

e co

mpl

aint

s m

ade

dire

ctly

to it

or t

hrou

gh th

e m

edia

mon

itorin

g cu

rren

tly ta

king

pl

ace

due

to la

ck o

f tra

ined

st

aff,

reso

urce

s an

d da

ta

C4

Who

is re

spon

sibl

e fo

r pro

cure

men

t with

in e

ach

agen

cy?

i.e.is

ther

e a

proc

urem

ent u

nit,

desi

gnat

ed

proc

urem

ent s

taff

with

in d

epar

tmen

ts o

r any

form

of

com

mitt

ee?

Ove

rall

resp

onsi

bilit

y re

sts

with

the

Chi

ef o

f the

P

E. P

Es

are

to e

stab

lish

a pr

ocur

emen

t uni

t or

desi

gnat

e a

unit

with

pro

cure

men

t re

spon

sibi

litie

s, s

7(3)

, PP

A

PE

s to

form

eva

luat

ion

com

mitt

ees,

s71

, PP

A

C5

Are

ther

e an

y re

quire

men

ts fo

r qua

lific

atio

ns o

r re

gist

ratio

n fo

r pro

cure

men

t sta

ff?

PE

s to

car

ry o

ut p

rocu

rem

ent a

ctiv

ity th

roug

h em

ploy

ees

with

qua

lific

atio

ns p

resc

ribed

by

the

PP

MO

and

kno

wle

dge

or tr

aini

ng o

n pr

ocur

emen

t, s7

(2),

PP

A

PP

MO

func

tions

incl

ude

defin

ing

func

tions

of

proc

urem

ent s

taff

and

arra

ngem

ents

for

asse

ssin

g th

eir c

apab

ility

and

exp

ertis

e.

PP

MO

repo

rts th

at a

n ac

cred

itatio

n pr

ogra

mm

e is

to

be

initi

ated

, as

wel

l as

capa

city

nee

ds

asse

ssm

ent,

grea

ter

train

ing

and

esta

blis

hmen

t of

a n

atio

nal p

rocu

rem

ent

train

ing

syst

em

C6

How

is p

rocu

rem

ent r

evie

wed

or a

ppro

ved

with

in e

ach

agen

cy?

i.e. i

s th

ere

any

com

mitt

ee o

r boa

rd w

hich

ap

prov

es a

nd a

re th

ere

leve

ls o

f aut

horit

y fo

r ap

prov

als?

At w

hat s

tage

s is

pro

cure

men

t rev

iew

ed?

Pro

cure

men

t uni

t to

obta

in a

ppro

vals

from

the

chie

f of t

he P

E, s

7(4)

, PP

A. T

his

is th

e se

cret

ary

in

gov

ernm

ent a

nd c

onst

itutio

nal b

odie

s or

the

offic

er d

esig

nate

d by

the

agen

cy’s

ow

n ru

les

in

othe

r cas

es.

－119－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

18

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

Bid

ding

doc

umen

ts to

be

appr

oved

by

chie

f of

PE

, PP

R 4

7 A

ppro

val o

f eva

luat

ions

var

ies

acco

rdin

g to

va

lue,

PP

R 6

7.

C7

Is re

spon

sibi

lity

for c

ontra

ct m

anag

emen

t with

in e

ach

agen

cy s

peci

fied?

P

rocu

rem

ent u

nit r

espo

nsib

le fo

r exa

min

ing

qual

ity s

tand

ards

of d

eliv

ered

goo

ds, w

orks

and

se

rvic

es a

nd k

eepi

ng p

erfo

rman

ce g

uara

ntee

s.

C8

Who

per

form

s fin

anci

al m

anag

emen

t fun

ctio

ns (e

.g.

com

mitm

ents

, pay

men

ts e

tc)?

Are

they

sep

arat

ed fr

om

proc

urem

ent?

The

head

of t

he P

E is

resp

onsi

ble

for f

inan

cial

m

anag

emen

t und

er th

e Fi

nanc

ial P

roce

dure

s A

ct

1999

. P

rocu

rem

ent a

nd fi

nanc

ial f

unct

ions

are

se

para

ted.

Onc

e co

ntra

cts

are

awar

ded,

cop

ies

are

prov

ided

to th

e fin

ance

dep

artm

ent,

who

als

o pr

oces

s in

voic

es.

D

Reg

istr

atio

n an

d Pa

rtic

ipat

ion

D1

Are

ther

e an

y re

quire

men

ts fo

r sup

plie

r reg

istra

tion

as a

re

quire

men

t of p

artic

ipat

ion

in p

rocu

rem

ent o

r as

a co

nditi

on o

f con

tract

aw

ard?

If s

o, g

ive

deta

ils

Non

e in

the

PP

A.

PP

R 1

8 re

quire

s P

Es

to p

repa

re s

tand

ing

lists

(in

clud

ing

lists

of N

GO

s), b

ut in

clus

ion

on th

e lis

t is

not

man

dato

ry fo

r par

ticip

atio

n in

bid

ding

, co

mpe

titiv

e pr

opos

als

or s

eale

d qu

otat

ions

. Lis

ts

used

for l

ow v

alue

dire

ct p

rocu

rem

ent.

Incl

usio

n on

the

list b

ased

on

qual

ifica

tion

crite

ria. L

ist t

o be

adv

ertis

ed a

nd u

pdat

ed a

nnua

lly.

Pro

cure

men

t mus

t be

from

bid

ders

with

VA

T re

gist

ratio

n, u

nles

s un

der t

hres

hold

s, P

PR

19.

D2

Are

ther

e an

y re

stric

tions

on

parti

cipa

tion

or o

rigin

of

good

s or

sta

ff ba

sed

on n

atio

nalit

y? If

so,

giv

e de

tails

N

o re

stric

tions

on

parti

cipa

tion

base

d on

na

tiona

lity,

exc

ept f

or ra

tion

proc

urem

ent (

food

ite

ms)

whe

re c

ontra

cts

can

only

be

conc

lude

d w

ith N

epal

ese

citiz

ens,

PP

R 8

9(2)

(d)

PP

R 3

8 pr

ohib

its d

iscr

imin

atio

n, o

ther

than

use

－120－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

19

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

of p

refe

renc

es

Fore

ign

bidd

ers

requ

ired

to s

tate

whe

ther

they

ha

ve a

n ag

ent i

n N

epal

, s14

(9),

PP

A (b

ut n

ot

oblig

ed to

hav

e an

age

nt).

For c

onsu

ltanc

y, P

PR

70

(6) r

equi

res

shor

tlist

ed in

tern

atio

nal

cons

ulta

nts

to h

ave

a lo

cal a

gent

. N

epal

i goo

ds to

be

purc

hase

d, e

ven

if up

to 1

0%

mor

e ex

pens

ive

than

fore

ign

good

s, P

PR

17.

D

3 Is

ther

e an

y m

echa

nism

for s

uspe

nsio

n of

non

-pe

rform

ing

supp

liers

and

/or t

hose

gui

lty o

f mis

cond

uct?

If

so, g

ive

deta

ils

Yes

, non

-per

form

ing

supp

liers

bla

cklis

ted

by

PP

MO

for 1

-3 y

ears

, s63

, PP

A. G

roun

ds fo

r bl

ackl

istin

g in

clud

e br

each

of c

ode

of c

ondu

ct,

failu

re to

sig

n a

cont

ract

, sub

stan

tial d

efec

ts in

co

ntra

ct im

plem

enta

tion,

con

vict

ion

of a

crim

inal

of

fenc

e, m

isre

pres

enta

tion

or fa

ilure

to p

ay a

lo

an.

PP

R 3

9 re

quire

s bl

ackl

istin

g fo

r fal

se in

form

atio

n re

gard

ing

loca

l age

nts

or th

eir c

omm

issi

on.

List

dis

play

ed o

n P

PM

O w

ebsi

te

Ther

e is

no

prov

isio

n fo

r ap

peal

aga

inst

the

deci

sion

E Pr

ocur

emen

t Pla

nnin

g

E

1 A

re a

genc

ies

requ

ired

to p

repa

re p

rocu

rem

ent p

lans

as

part

of th

eir b

udge

ting

proc

ess?

P

Es

to p

repa

re a

mas

ter p

rocu

rem

ent p

lan

for

proc

urem

ents

ove

r mor

e th

an o

ne y

ear o

r ann

ual

proc

urem

ent >

Rs

100m

(app

rox.

£73

50).

To b

e up

date

d ea

ch fi

scal

yea

r. P

Es

to p

repa

re a

n an

nual

pro

cure

men

t pla

n fo

r pr

ocur

emen

t > R

s 1m

(app

rox.

£73

50) a

s pa

rt of

bu

dget

pro

cess

. To

be b

ased

on

mas

ter

proc

urem

ent p

lan.

s6

, PP

A, P

PR

7-8

PP

MO

repo

rts m

ost P

Es

do

not h

ave

mas

ter o

r ann

ual

proc

urem

ent p

lans

P

PM

O re

ports

poo

r co

rrel

atio

n be

twee

n pr

ocur

emen

t and

bud

getin

g

E2

Are

age

ncie

s re

quire

d to

pre

pare

pro

cure

men

t pla

ns fo

r m

ajor

pro

cure

men

t req

uire

men

ts?

Pro

cure

men

t pla

ns re

quire

d un

der P

PR

3

PE

s re

quire

d to

pre

pare

cos

t est

imat

es fo

r P

PM

O re

port

PE

s ha

ve

wea

k sk

ills

in p

repa

ring

－121－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

20

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

proc

urem

ent >

Rs

25k,

s5,

PP

A &

PP

R 9

-15

Writ

ten

appr

oval

and

con

firm

atio

n of

fund

ing

requ

ired

befo

re p

rocu

rem

ent p

roce

eds,

PP

R 4

-6.

cost

est

imat

es

E3

Wha

t are

the

key

cont

ents

of p

rocu

rem

ent p

lans

? E

.g.

met

hods

, pac

kagi

ng, t

ype

of c

ontra

cts,

tim

esca

les

etc

Det

aile

d co

nten

ts s

peci

fied

in P

PR

7-8

cov

erin

g tim

ing,

cos

t, m

etho

d, p

acka

ging

, nee

d fo

r pre

-qu

alifi

catio

n an

d ty

pes

of c

ontra

ct.

F Pr

ocur

emen

t Met

hods

F1

Is

ther

e a

pref

eren

ce fo

r ope

n co

mpe

titio

n, w

ith o

ther

m

etho

ds re

quiri

ng ju

stifi

catio

n?

Yes

, pre

fere

nce

for o

pen

bidd

ing,

s9,

PP

A

Ope

n bi

ddin

g m

ay b

e on

e or

two

stag

e, s

11(2

), P

PA

. Tw

o st

age

perm

itted

whe

re te

chni

cal

aspe

cts

cann

ot b

e fu

lly d

efin

ed o

r dis

cuss

ions

w

ith b

idde

rs a

re re

quire

d du

e to

the

com

plex

na

ture

of t

he p

rocu

rem

ent,

s28.

F2

Wha

t pro

cure

men

t met

hods

are

per

mitt

ed fo

r goo

ds,

wor

ks a

nd n

on-c

onsu

ltanc

y se

rvic

es?

Pro

vide

det

ails

of

thre

shol

ds a

nd c

ondi

tions

for u

se

s8(1

)(a)

, PP

A d

efin

es:

O

pen

natio

nal b

iddi

ng –

def

ault

met

hod

O

pen

inte

rnat

iona

l bid

ding

– re

quire

d w

here

th

e ite

ms

are

not a

vaila

ble

at c

ompe

titiv

e pr

ice

in N

epal

, no

bids

wer

e re

ceiv

ed u

nder

na

tiona

l bid

ding

, whe

re a

don

or re

quire

d pr

ocur

emen

t fro

m a

fore

ign

sour

ce o

r the

ite

ms

are

com

plex

and

requ

ires

inte

rnat

iona

l bi

ddin

g. D

ocum

ents

mus

t be

in E

nglis

h, s

15,

PP

A

S

eale

d qu

otat

ions

– s

ee F

5

Dire

ct p

urch

ase

– se

e F6

Thro

ugh

parti

cipa

tion

of u

sers

’ com

mitt

ee o

r be

nefic

iary

gro

up –

whe

re th

is in

crea

ses

econ

omy,

qua

lity

or s

usta

inab

ility

, s44

, PP

A

Fo

rce

acco

unt –

for r

egul

ar p

etty

wor

k of

or

dina

ry n

atur

e, s

45, P

PA

Ope

n bi

ddin

g, s

eale

d qu

otat

ions

and

dire

ct

purc

hase

are

bro

adly

eq

uiva

lent

to IC

B, s

hopp

ing

and

dire

ct c

ontra

ctin

g in

JI

CA

gui

delin

es.

Ther

e is

no

met

hod

equi

vale

nt to

LIB

. A

dditi

onal

met

hods

als

o ex

ist e

.g. c

omm

unity

pa

rtici

patio

n, fo

rce

acco

unt,

ratio

n pr

ocur

emen

t and

w

ork

by N

GO

s.

－122－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

21

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

Oth

er v

aria

tions

incl

ude:

Rat

ion

proc

urem

ent (

for f

oods

tuffs

, pr

inci

pally

for a

rmy

and

polic

e), s

42, P

PA

, P

PR

88-

93

W

ork

by N

GO

– to

ach

ieve

pro

mpt

ness

, ef

fect

iven

ess

and

econ

omy

for w

orks

suc

h as

pub

lic a

war

enes

s or

em

pow

erm

ent,

s46,

P

PA

F3

W

hat p

rocu

rem

ent/

sele

ctio

n m

etho

ds a

re p

erm

itted

for

cons

ulta

ncy

serv

ices

? P

rovi

de d

etai

ls o

f thr

esho

lds

and

cond

ition

s fo

r use

s8(1

)(b)

, PP

A d

efin

es:

C

ompe

titiv

e pr

opos

als

– se

e va

riatio

ns o

f m

etho

d in

H2

D

irect

neg

otia

tions

, PP

R82

P

PR

83

allo

ws

proc

urem

ent b

y “o

ther

met

hod”

, ba

sed

on q

ualif

icat

ions

whe

re h

igh

leve

l ex

perti

se is

requ

ired,

ther

e ar

e fe

w q

ualif

ied

cons

ulta

nts,

the

cons

ulta

ncy

is fo

r a s

hort

perio

d or

ther

e is

inad

equa

te ti

me

for t

he p

rocu

rem

ent.

C

onsu

ltanc

y se

rvic

es m

ay b

e pr

ocur

ed w

hen

the

wor

k ca

nnot

be

perfo

rmed

by

PE

sta

ff or

it is

re

quire

d by

a d

onor

, s29

, PP

A

Com

petit

ive

prop

osal

s is

br

oadl

y si

mila

r to

JIC

A’s

m

ain

sele

ctio

n pr

oced

ure.

D

irect

neg

otia

tions

is

broa

dly

sim

ilar t

o JI

CA

’s

sing

le s

ourc

e se

lect

ion.

F4

Is th

e sp

littin

g of

pro

cure

men

t req

uire

men

ts to

avo

id

thre

shol

ds p

rohi

bite

d?

Yes

, s8(

2)

F5

Is a

sim

plifi

ed m

etho

d av

aila

ble

for l

ow v

alue

pr

ocur

emen

t, w

ith a

cle

ar th

resh

old?

Y

es, s

eale

d qu

otat

ions

up

to R

s 1m

(app

rox.

£7

350)

, s40

, PP

A, P

PR

84

Dire

ct p

rocu

rem

ent u

p to

Rs

150k

(app

rox

£1,1

00)

Sea

led

quot

atio

n m

etho

d is

un

usua

l in

requ

iring

an

adve

rt, ra

ther

than

bei

ng

limite

d to

a s

hortl

ist.

The

adve

rt gi

ves

grea

ter

trans

pare

ncy

and

com

petit

ion,

but

pot

entia

lly

resu

lts in

a c

ostly

pro

cess

fo

r low

val

ue c

ontra

cts

－123－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

22

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

F6

Is s

ingl

e so

urce

pro

cure

men

t lim

ited

to s

peci

fied,

ju

stifi

ed c

ircum

stan

ces?

Y

es, d

irect

pur

chas

e on

ly fo

r low

val

ues

up to

Rs

150k

(app

rox

£1,1

00),

whe

re o

nly

one

supp

lier

can

mee

t the

nee

d or

has

exc

lusi

ve ri

ghts

, for

ad

ditio

nal p

urch

ases

up

to 3

0% o

f the

con

tract

va

lue

whe

re th

ey c

anno

t be

sepa

rate

d fro

m th

e in

itial

pur

chas

e or

whe

re a

con

sulta

nt h

as u

niqu

e qu

alifi

catio

ns o

r mus

t con

tinue

ear

lier w

ork,

s41

, P

PA

, PP

R 8

5 C

erta

in ju

stifi

catio

ns fo

r dire

ct p

urch

ase

requ

ire

appr

oval

by

a go

vern

men

t com

mitt

ee.

Dire

ct n

egot

iatio

ns fo

r con

sulta

ncy

serv

ices

onl

y fo

r ser

vice

s un

der R

s 10

0k(a

ppro

x. £

750)

. P

erm

itted

ove

r thi

s th

resh

old

with

app

rova

l of a

n of

ficia

l one

leve

l hig

her t

han

the

chie

f of t

he P

E.

Imm

edia

te p

rocu

rem

ent p

erm

itted

in s

peci

al

circ

umst

ance

s i.e

. nat

ural

dis

aste

rs, w

ar e

tc, s

66

& 2

(n),

PP

A

G

Bid

ding

Pro

cess

for G

oods

, Wor

ks a

nd N

on-

Con

sulta

ncy

Serv

ices

G1

Are

age

ncie

s re

quire

d to

adv

ertis

e pr

ocur

emen

t op

portu

nitie

s w

idel

y, w

heth

er n

atio

nally

or

inte

rnat

iona

lly?

Invi

tatio

n to

bid

or p

requ

alify

to b

e pu

blis

hed

in

daily

new

spap

ers

of n

atio

nal c

ircul

atio

n (o

r in

tern

atio

nally

for o

pen

inte

rnat

iona

l bid

ding

) and

on

the

web

site

of t

he P

E o

r PP

MO

, s14

, PP

A

Invi

tatio

n fo

r sea

led

quot

atio

ns p

ublis

hed

in

natio

nal o

r loc

al n

ewsp

aper

G2

Is u

se o

f res

trict

ed b

iddi

ng li

mite

d to

spe

cifie

d, ju

stifi

ed

circ

umst

ance

s?

No

met

hod

of re

stric

ted

bidd

ing

No

met

hod

equi

vale

nt to

LI

B in

JIC

A g

uide

lines

G

3 Is

pre

-qua

lific

atio

n pe

rmitt

ed o

r req

uire

d fo

r lar

ge o

r co

mpl

ex c

ontra

cts?

B

iddi

ng c

an b

e w

ith o

r with

out p

requ

alifi

catio

n,

s11,

PP

A

Pre

qual

ifica

tion

requ

ired

for l

arge

and

com

plex

－124－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

23

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

cont

ract

s, a

ccor

ding

to P

PM

O g

uida

nce.

P

erm

itted

for o

ther

pro

cure

men

t whe

re

cons

ider

ed a

ppro

pria

te, s

12, P

PA

N

o qu

alifi

catio

n re

quire

men

ts p

erm

itted

for

cons

truct

ion

< R

s 6m

(app

rox.

£44

k)

G4

Are

age

ncie

s re

quire

d to

use

qua

lific

atio

n cr

iteria

re

late

d to

the

cont

ract

and

to d

iscl

ose

thes

e to

ap

plic

ants

?

Qua

lific

atio

n cr

iteria

mus

t be

stat

ed in

bid

ding

, pr

equa

lific

atio

n or

RFP

doc

umen

ts a

nd m

ust

rela

te to

are

as s

uch

as te

chni

cal q

ualif

icat

ions

, eq

uipm

ent,

past

per

form

ance

etc

, s10

, PP

A

Pro

visi

ons

allo

win

g on

ly a

par

ticul

ar c

lass

of

supp

lier t

o pa

rtici

pate

are

not

per

mitt

ed.

Det

aile

d gu

idan

ce o

n cr

iteria

in P

PR

25-

30

G5

Are

all

qual

ified

firm

s in

vite

d to

bid

? Y

es, s

12(5

) and

13(

3), P

PA

, PP

R 3

5

G6

Are

obj

ectiv

e sp

ecifi

catio

ns o

r oth

er te

chni

cal

docu

men

ts re

quire

d to

cle

arly

des

crib

e th

e su

bjec

t of

proc

urem

ent?

Yes

, s4,

PP

A P

Es

requ

ired

to p

repa

re

spec

ifica

tions

, pla

ns, d

raw

ings

, des

igns

or o

ther

de

scrip

tions

bas

ed o

n re

leva

nt o

bjec

tive

char

acte

ristic

s an

d fu

nctio

ns. B

rand

nam

es e

tc

only

per

mitt

ed w

here

oth

er d

escr

iptio

n is

not

po

ssib

le a

nd w

ith e

quiv

alen

ts p

erm

itted

. Fu

rther

requ

irem

ents

in P

PR

42-

44

Ade

quat

e le

gal r

ules

, but

P

PM

O re

port

PE

s ha

ve

wea

k sk

ills

in p

repa

ring

spec

ifica

tions

G7

Are

sta

ndar

ds re

quire

d to

be

used

, whe

ther

nat

iona

l or

inte

rnat

iona

l?

Not

cov

ered

G8

Do

tem

plat

es fo

r bid

ding

doc

umen

ts:

cont

ain

clea

r ins

truct

ions

on

the

bidd

ing

proc

ess?

di

sclo

se th

e ev

alua

tion

crite

ria a

nd m

etho

dolo

gy?

cont

ain

draf

t con

tract

s w

hich

are

fair

and

prov

ide

adeq

uate

pro

tect

ion

for t

he a

genc

y?

s13(

2) re

quire

s th

is c

onte

nt in

bid

ding

do

cum

ents

. PP

R 4

5-46

giv

es fu

rther

det

ails

. P

PR

21-

22 &

Sch

edul

es 3

-4 s

peci

fy p

erm

itted

co

ntra

ct ty

pes.

S

BD

tem

plat

es b

ased

on

Wor

ld B

ank

docu

men

ts.

PP

MO

repo

rt P

Es

have

w

eak

skill

s in

pre

parin

g bi

ddin

g do

cum

ents

G9

Are

fees

for b

iddi

ng d

ocum

ents

lim

ited

to c

osts

for

Fees

not

cov

ered

in P

PA

－125－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

24

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

copy

ing

and

desp

atch

? Y

es, f

ees

for p

requ

alifi

catio

n do

cum

ents

on

the

basi

s of

cos

t inc

urre

d to

pre

pare

doc

umen

ts,

from

Rs

1-15

k (a

ppro

x £7

-110

), P

PR

34

Fees

for b

iddi

ng d

ocum

ents

from

Rs

1-10

k (a

ppro

x £7

-75)

, PP

R 4

8 G

10

Are

age

ncie

s re

quire

d to

giv

e a

clea

r bid

ding

dea

dlin

e,

keep

bid

s se

cure

ly a

nd re

ject

late

bid

s?

Yes

, s17

-18,

s14

(6)-

(7),

PP

A, P

PR

57

and

59

G11

A

re m

inim

um b

iddi

ng p

erio

ds s

peci

fied?

A

t lea

st 3

0 da

ys fo

r nat

iona

l bid

ding

/ pr

equa

lific

atio

n an

d 45

day

s fo

r int

erna

tiona

l bi

ddin

g/pr

equa

lific

atio

n, s

14(4

), P

PA

A

t lea

st 1

5 da

ys fo

r sea

led

quot

atio

ns, s

40, P

PA

G12

A

re b

id s

ecur

ities

requ

ired?

If s

o, g

ive

deta

ils o

f rul

es.

Yes

, s21

, PP

A. P

PR

53

spec

ifies

a v

alue

of a

t le

ast 2

.5%

of b

id v

alue

B

id s

ecur

ities

from

fore

ign

bank

s to

be

coun

ter-

guar

ante

ed b

y a

Nep

ali b

ank.

B

id s

ecur

ity fo

rfeite

d fo

r with

draw

al, r

efus

ing

an

arith

met

ic c

orre

ctio

n, fa

iling

to s

ign

a co

ntra

ct o

r pr

ovid

e pe

rform

ance

sec

urity

, cha

ngin

g pr

ice

or

subs

tant

ive

mat

ter w

hen

prov

idin

g cl

arifi

catio

ns

or b

reac

hing

con

duct

rule

s.

Con

ditio

ns fo

r for

feiti

ng b

id

secu

rity

are

wid

er th

an

usua

lly s

een.

For

feitu

re fo

r su

bsta

ntiv

e ch

ange

s or

br

each

of c

ondu

ct ru

les

are

subj

ectiv

e an

d co

uld

be

open

to a

buse

G13

A

re p

ublic

bid

ope

ning

s re

quire

d?

Bid

s to

be

open

ed a

t the

tim

e an

d pl

ace

in th

e bi

ddin

g do

cum

ents

, im

med

iate

ly a

fter t

he

dead

line

in th

e pr

esen

ce o

f bid

ders

’ re

pres

enta

tives

, S22

, PP

A a

nd P

PR

59

G14

Is

eva

luat

ion

base

d on

the

crite

ria in

the

bidd

ing

docu

men

t?

Yes

, s25

(5),

PP

A

s23-

25, P

PA

and

PP

R 6

0-66

giv

e ev

alua

tion

proc

edur

es, w

hich

are

con

sist

ent w

ith u

sual

in

tern

atio

nal p

ract

ices

.

G15

Is

aw

ard

to th

e lo

wes

t eva

luat

ed re

spon

sive

bid

? Y

es, 2

5(5)

-(7)

, PP

A

10%

pre

fere

nce

to

－126－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

25

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

Pre

fere

nce

for N

epal

ese

bidd

ers

(or f

orei

gn

bidd

ers

in jo

int v

entu

re w

ith a

Nep

ales

e bi

dder

) is

per

mitt

ed u

nder

inte

rnat

iona

l bid

ding

, s14

(8)

For s

eale

d qu

otat

ions

, the

low

est e

valu

ated

qu

otat

ion

fulfi

lling

spe

cifie

d re

quire

men

ts th

at is

w

ithin

the

cost

est

imat

e, s

40, P

PA

dom

estic

pro

duct

s po

ssib

le

but n

o pr

efer

ence

for S

ME

s

G16

A

re n

egot

iatio

ns p

rohi

bite

d?

Neg

otia

tions

not

cov

ered

in P

PA

.

H

Proc

urem

ent P

roce

ss fo

r Con

sulta

ncy

Serv

ices

H

1 A

re T

OR

requ

ired

whi

ch c

lear

ly d

escr

ibe

obje

ctiv

es,

task

s an

d ou

tput

s of

the

assi

gnm

ent?

Y

es, s

4, P

PA

PE

s re

quire

d to

pre

pare

sp

ecifi

catio

ns, p

lans

, dra

win

gs, d

esig

ns o

r oth

er

desc

riptio

ns b

ased

on

rele

vant

obj

ectiv

e ch

arac

teris

tics

and

func

tions

. PP

R 6

9 gi

ves

deta

ils to

incl

ude

in T

OR

. R

FP to

con

tain

TO

R w

ith n

atur

e, ti

me

and

plac

e of

ser

vice

s, ta

sks

and

expe

cted

out

puts

, s3

1(2)

(b),

PP

A

H2

Are

age

ncie

s re

quire

d to

adv

ertis

e pr

ocur

emen

t op

portu

nitie

s w

idel

y, w

heth

er n

atio

nally

or

inte

rnat

iona

lly?

For c

ompe

titiv

e pr

opos

als,

requ

est f

or E

OIs

no

tice

requ

ired

whe

re o

ver t

hres

hold

of R

s 1m

(a

ppro

x. £

7350

). A

dver

t may

be

natio

nal o

r in

tern

atio

nal.

s30,

PP

A, P

PR

70

N

atio

nal a

dver

t – d

efau

lt

Inte

rnat

iona

l adv

ert –

requ

ired

whe

re o

ver R

s 30

m (a

ppro

x. £

225k

), th

e se

rvic

es a

re n

ot

avai

labl

e at

com

petit

ive

pric

e fro

m m

ore

than

on

e co

nsul

tant

in N

epal

, no

prop

osal

s w

ere

rece

ived

und

er n

atio

nal a

dver

tisin

g, w

here

a

dono

r req

uire

s pr

ocur

emen

t fro

m a

fore

ign

sour

ce. N

otic

es m

ust b

e in

Eng

lish.

S

hortl

ist d

evel

oped

with

out a

dver

tisin

g w

here

un

der t

he R

s 1m

thre

shol

d. S

hortl

ist o

f

This

diff

ers

from

JIC

A

guid

elin

es, w

here

sho

rtlis

ts

are

deve

lope

d w

ithou

t ad

verti

sing

to re

ques

t EO

Is

－127－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

26

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

pref

erab

ly 6

, but

at l

east

3, r

equi

red,

PP

R 7

2.

H3

Is s

hortl

istin

g ba

sed

on o

bjec

tive

eval

uatio

n of

EO

Is o

r ot

her a

ppro

pria

te s

ourc

es?

Eva

luat

ion

of E

OIs

bas

ed o

n qu

alifi

catio

n,

expe

rienc

e an

d ca

paci

ty in

EO

Is, s

30(5

), P

PR

70

(5).

Ren

owne

d co

nsul

tant

s w

ho d

id n

ot s

ubm

it E

OIs

may

als

o be

incl

uded

in th

e sh

ortli

st, P

PR

70

(7).

S

hortl

ist o

f 3-6

firm

s.

PE

s m

ust r

e-ad

verti

se if

a s

hortl

ist o

f at l

east

3 is

no

t dev

elop

ed, P

PR

70(

8).

Det

aile

d gu

idan

ce o

n cr

iteria

in P

PR

27-

30

H4

Do

tem

plat

es fo

r RFP

doc

umen

ts:

cont

ain

clea

r ins

truct

ions

on

the

bidd

ing

proc

ess?

di

sclo

se th

e ev

alua

tion

crite

ria, w

eigh

ting,

m

etho

dolo

gy a

nd a

ny m

inim

um th

resh

olds

? co

ntai

n dr

aft c

ontra

cts

whi

ch a

re fa

ir an

d pr

ovid

e ad

equa

te p

rote

ctio

n fo

r the

age

ncy?

S31

(2) r

equi

res

this

con

tent

in R

FP d

ocum

ents

. P

PR

23

& S

ched

ule

5 sp

ecify

per

mitt

ed c

ontra

ct

type

s.

PP

R 7

1 &

73

give

s de

tails

on

RFP

, inc

ludi

ng

stat

ing

crite

ria, w

eigh

ts a

nd s

elec

tion

met

hods

. S

tand

ard

RFP

tem

plat

es b

ased

on

Wor

ld B

ank

docu

men

ts

H5

Are

age

ncie

s re

quire

d to

giv

e a

clea

r bid

ding

dea

dlin

e,

keep

pro

posa

ls s

ecur

ely

and

reje

ct la

te p

ropo

sals

? s3

1(2)

(h),

PP

A re

quire

s cl

ear d

eadl

ine.

P

PR

75(

2) re

quire

s re

ject

ion

of la

te p

ropo

sals

.

H6

Are

min

imum

bid

ding

per

iods

spe

cifie

d?

At l

east

30

days

, s31

, PP

A, P

PR

71(

1).

H

7 A

re p

ublic

bid

ope

ning

s re

quire

d fo

r tec

hnic

al a

nd/o

r fin

anci

al p

ropo

sals

, with

ade

quat

e no

tific

atio

n fo

r fin

anci

al o

peni

ngs?

S32

, PP

A a

ddre

sses

tech

nica

l ope

ning

, s34

, P

PA

add

ress

es fi

nanc

ial o

peni

ng.

PP

R 7

5 an

d 79

requ

ire b

oth

tech

nica

l and

fin

anci

al o

peni

ngs

in th

e pr

esen

ce o

f bid

ders

’ re

pres

enta

tives

H8

Is te

chni

cal e

valu

atio

n ba

sed

on th

e cr

iteria

and

w

eigh

tings

in th

e R

FP d

ocum

ent,

with

a m

inim

um

qual

ity th

resh

old?

Yes

, s31

(2)(f

) and

s33

, PP

A

Crit

eria

may

incl

ude

expe

rienc

e of

firm

, pr

opos

ed m

etho

dolo

gy, q

ualif

icat

ions

of k

ey

hum

an re

sour

ces,

kno

wle

dge

and

tech

nolo

gy

－128－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

27

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

trans

fer a

nd, f

or in

tern

atio

nal p

ropo

sals

, key

N

epal

ese

hum

an re

sour

ces.

Q

ualit

y th

resh

old

to b

e st

ated

in R

FP, P

PR

71

and

76

H9

Are

age

ncie

s re

quire

d to

kee

p fin

anci

al b

ids

seal

ed u

ntil

the

time

for f

inan

cial

ope

ning

and

eva

luat

ion?

Y

es, s

32, P

PA

, PP

R 7

1(c)

& 7

6(5)

.

H10

Is

fina

ncia

l eva

luat

ion

and

rank

ing

of p

ropo

sals

bas

ed

on th

e m

etho

dolo

gy a

nd w

eigh

tings

in th

e R

FP?

s31(

4)-(

5) a

nd s

35, P

PA

, PP

R 7

1, 7

4 &

80:

C

ompe

titiv

e pr

opos

als

may

be

eval

uate

d us

ing:

Qua

lity

and

Cos

t met

hod

Q

ualit

y m

etho

d –

whe

re e

xcep

tiona

lly

com

plex

or h

avin

g co

nsid

erab

le im

pact

on

futu

re p

roje

cts

or n

atio

nal e

cono

my

Fi

xed

Bud

ge m

etho

d

Leas

t Cos

t met

hod

QC

BS

and

QB

S a

re

equi

vale

nt to

JIC

A

sele

ctio

n pr

oced

ures

. FB

S

and

LCS

are

add

ition

al

met

hods

not

con

tain

ed in

JI

CA

gui

delin

es.

H11

Is

aw

ard

to th

e hi

ghes

t ran

ked

prop

osal

, acc

ordi

ng to

th

e m

etho

dolo

gy s

peci

fied

in th

e R

FP?

Yes

, s35

, PP

A s

peci

fies

prop

osal

to b

e se

lect

ed

for Q

CB

S, Q

BS

, FB

S a

nd L

CS

H12

A

re n

egot

iatio

ns li

mite

d to

the

first

rank

ed c

onsu

ltant

an

d to

are

as o

ther

than

fee

rate

s?

Yes

, neg

otia

tions

onl

y w

ith th

e se

lect

ed

cons

ulta

nt. C

an n

egot

iate

with

the

next

rank

ed

cons

ulta

nt if

neg

otia

tions

fail.

N

egot

iatio

ns li

mite

d to

TO

R, s

cope

of s

ervi

ces,

re

ports

and

faci

litie

s pr

ovid

ed b

y th

e P

E. F

ee

rate

s ca

n on

ly b

e ne

gotia

ted

for Q

BS

. R

eim

burs

able

s ca

n be

neg

otia

ted

unde

r all

met

hods

. s3

7, P

PA

, PP

R 8

1(5)

.

I C

ontr

act A

war

d an

d M

anag

emen

t

I1

Is

any

not

ifica

tion

to u

nsuc

cess

ful b

idde

rs a

nd s

tand

still

pe

riod

requ

ired

prio

r to

awar

d?

Yes

, not

ice

of in

tent

of a

ccep

tanc

e se

nt to

se

lect

ed b

idde

r and

info

rmat

ion

on th

e se

lect

ed

bidd

er s

ent t

o ot

her b

idde

rs w

ithin

7 d

ays

of

－129－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

28

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

sele

ctio

n of

low

est e

valu

ated

bid

. Sel

ecte

d bi

d ca

n on

ly b

e ac

cept

ed a

fter 7

day

s if

no

appl

icat

ion

for r

evie

w is

sub

mitt

ed. s

27 a

nd s

38,

PP

A.

I2

Is th

e ag

ency

requ

ired

to d

ebrie

f uns

ucce

ssfu

l bid

ders

an

d pu

blis

h de

tails

of t

he c

ontra

ct a

war

d?

PE

mus

t com

mun

icat

e gr

ound

s fo

r rej

ectio

n of

bi

ds to

any

bid

der f

or g

oods

, wor

ks a

nd o

ther

se

rvic

es w

ho re

ques

ts th

is w

ithin

30

days

of t

he

notic

e of

inte

nt o

f acc

epta

nce,

s27

(7)

Info

rmat

ion

on s

hortl

ist m

ust b

e pr

ovid

ed to

all

cons

ulta

nts

who

sub

mit

EO

Is, P

PR

70(

10).

Fi

nanc

ial p

ropo

sals

of c

onsu

ltant

s fa

iling

to

reac

h te

chni

cal p

ass

mar

k m

ust b

e re

turn

ed w

ith

a no

tice

givi

ng g

roun

ds fo

r fai

lure

, PP

R 7

8(3)

. P

ublic

not

ice

of c

ontra

cts

requ

ired,

s60

, PP

A.

Nee

d to

ens

ure

debr

ief i

s av

aila

ble

for c

onsu

ltant

s bi

ddin

g fo

r con

sulta

ncy

serv

ices

.

I3

Wha

t pro

cedu

res

and

cont

rols

app

ly to

con

tract

am

endm

ents

and

var

iatio

ns?

Con

tract

s ca

n be

am

ende

d by

writ

ten

cons

ent o

f bo

th p

artie

s, p

rovi

ding

the

basi

c sc

ope

of

cont

ract

is n

ot c

hang

ed, s

53, P

PA

. No

spec

ific

prov

isio

ns o

n ap

prov

als

in P

PA

. In

cas

es o

f unf

ores

een

circ

umst

ance

s, v

aria

tion

orde

rs u

p to

15%

may

be

issu

ed w

ithou

t con

tract

am

endm

ent.

Var

iatio

n or

ders

ove

r 15%

requ

ire

appr

oval

of t

he C

ounc

il of

Min

iste

rs. s

54, P

PA

s5

5, P

PA

cov

ers

pric

e ad

just

men

t for

con

tract

s ov

er 1

5 m

onth

s. D

irect

ive

on p

rice

adju

stm

ent

allo

ws

pric

e es

cala

tion

in c

ontra

cts

less

than

15

mon

ths

in c

ases

of u

nusu

al c

ondi

tions

incr

easi

ng

mar

ket p

rices

by

> 10

%.

I4

Wha

t dis

pute

reso

lutio

n pr

oced

ures

are

incl

uded

in

cont

ract

s?

Con

tract

mus

t sta

te m

echa

nism

for s

ettle

men

t of

disp

utes

, s52

(2)(

r) a

nd s

58, P

PA

. A

rbitr

atio

n fo

r goo

ds, c

onsu

ltanc

y an

d ot

her

－130－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

29

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

serv

ices

as

prov

ided

in th

e co

ntra

ct o

r pre

vaili

ng

law

. Adj

udic

atio

n, d

ispu

te re

solu

tion

com

mitt

ee

or a

rbitr

atio

n fo

r wor

ks, d

epen

ding

on

valu

e.

J R

ecor

d K

eepi

ng a

nd C

omm

unic

atio

ns

J1

Is th

e ag

ency

requ

ired

to m

aint

ain

reco

rds

of

proc

urem

ent a

ctiv

ities

? G

ive

deta

ils o

f the

con

tent

s re

quire

d

Rec

ords

to b

e ke

pt fo

r 7 y

ears

from

com

plet

ion

of th

e pr

ocur

emen

t s72

, PP

A, P

PR

149

. P

PR

149

pro

vide

s co

mpr

ehen

sive

list

of r

ecor

ds

to b

e m

aint

aine

d (2

3 ite

ms)

. PP

MO

to p

repa

re

form

ats

for r

ecor

ds.

J2

Are

com

mun

icat

ions

with

bid

ders

and

sup

plie

rs

requ

ired

to b

e in

writ

ing

or c

onfir

med

in w

ritin

g?

Com

mun

icat

ions

to b

e in

writ

ing,

s68

, PP

A

s69,

PP

A a

llow

s el

ectro

nic

com

mun

icat

ions

w

here

per

mitt

ed b

y go

vern

men

t, su

bjec

t to

requ

irem

ents

of s

ecur

ity, a

cces

s, p

rese

rvin

g co

nten

t and

not

oth

erw

ise

cont

rave

ning

the

PP

A

J3

Mus

t com

mun

icat

ions

suc

h as

bid

cla

rific

atio

ns a

nd

pre-

bid

mee

ting

min

utes

be

sent

to a

ll bi

dder

s?

List

of p

re-q

ualif

ied

bidd

ers

to b

e pu

blis

hed

and

sent

to a

ll ap

plic

ants

, s12

(5),

PP

A

Bid

cla

rific

atio

ns a

nd a

men

dmen

ts m

ust b

e se

nt

to a

ll bi

dder

s, s

16, P

PA

N

otic

e of

can

cella

tion

mus

t be

sent

to a

ll bi

dder

s,

s26(

3), P

PA

K

Bid

der C

ompl

aint

s

K

1 Is

ther

e an

y m

echa

nism

ena

blin

g bi

dder

s to

cha

lleng

e pr

ocur

emen

t dec

isio

ns?

And

to a

ppea

l the

resp

onse

? Y

es, t

wo

leve

l rev

iew

pro

cess

whe

re th

ere

is a

n er

ror o

r bre

ach

of d

uty

by th

e P

E, s

47-5

1, P

PA

. A

pplic

atio

n to

be

subm

itted

to th

e C

hief

of t

he

PE

, unl

ess

the

cont

ract

is a

lread

y in

forc

e.

For a

ny p

rocu

rem

ent o

ver R

s 30

m (a

ppro

x.

£225

k), a

n ap

plic

atio

n m

ay b

e su

bmitt

ed to

the

Rev

iew

Com

mitt

ee w

here

the

Chi

ef o

f PE

doe

s no

t dec

ide

on ti

me,

the

appl

ican

t is

not s

atis

fied

PP

MO

repo

rt th

e co

mpl

aint

s m

echa

nism

is

inef

fect

ive.

The

re a

re v

ery

few

com

plai

nts

at R

evie

w

Com

mitt

ee le

vel d

ue to

the

high

thre

shol

d an

d hi

gh

depo

sit r

equi

rem

ent.

In

prac

tice,

mos

t com

plai

nts

are

take

n to

ant

i-cor

rupt

ion

－131－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

30

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

with

the

PE

’s d

ecis

ion

or th

e co

ntra

ct is

in fo

rce.

N

ot c

lear

if a

ppea

l to

the

cour

ts is

pos

sibl

e.

Rig

ht to

revi

ew to

be

stat

ed in

bid

ding

do

cum

ents

, s13

(2)(

q) a

nd s

31(2

)(k)

, PP

A

bodi

es o

r the

cou

rts.

K2

Are

com

plai

nts

and

appe

als

hear

d by

an

inde

pend

ent

body

? C

ompl

aint

s he

ard

by th

e C

hief

of t

he P

E –

this

ca

nnot

be

inde

pend

ent,

but g

ives

the

oppo

rtuni

ty

to c

orre

ct m

ista

kes

with

out l

ong

proc

eedi

ngs.

R

evie

w C

omm

ittee

app

oint

ed b

y G

over

nmen

t in

clud

ing

a fo

rmer

sen

ior j

udge

or c

ivil

serv

ant,

retir

ed g

over

nmen

t eng

inee

r and

per

son

with

pr

ocur

emen

t exp

erie

nce.

No

serv

ing

gove

rnm

ent

staf

f per

mitt

ed o

n th

e co

mm

ittee

.

Whe

re a

ppea

l to

the

Rev

iew

Com

mitt

ee is

not

pe

rmitt

ed, t

here

is n

o in

depe

nden

t rev

iew

at a

ll.

K3

Doe

s an

y co

mpl

aint

s m

echa

nism

follo

w a

ppro

pria

te

proc

edur

es in

term

s of

tim

esca

les,

doc

umen

tatio

n re

quire

men

ts e

tc?

Com

plai

nts

to b

e su

bmitt

ed to

the

PE

with

in 7

da

ys o

f the

bid

der b

eing

aw

are

of th

e er

ror/b

reac

h.

Com

plai

nts/

appe

als

to b

e su

bmitt

ed to

the

Rev

iew

Com

mitt

ee w

ithin

7 d

ays

of th

e di

sput

ed/a

bsen

t dec

isio

n of

the

PE

or w

ithin

30

days

of c

oncl

usio

n of

the

cont

ract

. A s

ecur

ity

depo

sit (

bank

gua

rant

ee o

r cas

h de

posi

t) of

0.

5% o

f the

bid

val

ue is

pay

able

. Th

e C

hief

of P

E m

ust s

uspe

nd p

rocu

rem

ent a

nd

deci

de w

ithin

5 d

ays,

sta

ting

how

pro

cure

men

t is

to p

roce

ed if

ther

e ha

s be

en a

bre

ach.

Th

e R

evie

w C

omm

ittee

mus

t dec

ide

with

in 3

0 da

ys. I

t mus

t req

uest

info

rmat

ion

from

the

PE

w

ithin

3 d

ays,

with

3 d

ays

for t

he P

E to

resp

ond.

It

may

hol

d he

arin

gs w

ith th

e pa

rties

. Prio

r to

cont

ract

aw

ard,

the

Rev

iew

Com

mitt

ee m

ay

annu

l/pro

hibi

t inc

orre

ct d

ecis

ions

or o

rder

re-

eval

uatio

n in

cas

es o

f bre

ach.

Afte

r con

tract

Tim

esca

les

are

shor

t co

mpa

red

to m

any

othe

r co

untri

es.

－132－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f N

epal

Cr

own

Agen

ts

31

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

R

ecom

men

datio

ns

awar

d, c

ompe

nsat

ion

may

be

awar

ded.

The

PE

m

ust s

uspe

nd p

rocu

rem

ent d

urin

g co

mm

ittee

pr

ocee

ding

s, u

nles

s it

certi

fies

that

pro

cure

men

t is

urg

ent.

L

Prev

entio

n of

Cor

rupt

ion

L1

Is th

ere

a cl

ear p

olic

y an

d ru

les

proh

ibiti

ng c

orru

pt a

nd

fraud

ulen

t pra

ctic

es?

Yes

, see

det

ails

on

s61-

62, P

PA

in L

2.

Bid

ding

doc

umen

ts to

con

tain

info

rmat

ion

that

bi

ds w

ill n

ot b

e pr

oces

sed

whe

re th

ere

is c

onfli

ct

of in

tere

st o

r leg

al a

ctio

n fo

r fra

ud o

r cor

rupt

ion,

s1

3(2)

(p) a

nd s

31(2

)(j),

PP

A

Rej

ectio

n of

bid

s re

quire

d in

cas

es o

f col

lusi

on,

s26(

6) a

nd s

36(d

), P

PA

PP

MO

repo

rt w

ides

prea

d co

llusi

on a

nd in

timid

atio

n at

tim

e of

bid

sub

mis

sion

w

ith in

effe

ctiv

e ac

tion

to

miti

gate

L2

Is th

ere

a pr

ocur

emen

t cod

e of

con

duct

or o

ther

rule

s co

verin

g ar

eas

such

as

gifts

, hos

pita

lity

and

conf

licts

of

inte

rest

?

s61,

PP

A g

ives

cod

e of

con

duct

for o

ffici

als

invo

lved

in p

rocu

rem

ent w

hich

incl

udes

act

ing

impa

rtial

ly a

nd in

the

publ

ic in

tere

st, a

void

ing

conf

lict o

f int

eres

t, m

aint

aini

ng c

onfid

entia

lity

and

not c

omm

ittin

g co

rrup

t, fra

udul

ent o

r col

lusi

ve

prac

tices

. s6

2, P

PA

giv

es c

ode

of c

ondu

ct fo

r bid

ders

w

hich

cov

ers

brib

ery,

mis

repr

esen

tatio

n,

coer

cion

, col

lusi

on, i

nter

ferin

g w

ith o

ther

bid

ders

, se

ekin

g to

influ

ence

the

PE

and

con

flict

of

inte

rest

.

M

Oth

er In

form

atio

n

M

1 N

ote

any

othe

r inf

orm

atio

n of

rele

vanc

e co

ncer

ning

the

proc

urem

ent s

yste

m e

.g. u

se o

f e-p

rocu

rem

ent

e-G

P fo

r pro

cure

men

t > R

s 20

m (a

ppro

x. £

150k

) fro

m 1

5 A

pril

2010

– p

hase

1 to

be

com

plet

ed b

y Ju

ly 2

012.

Fur

ther

roll

out n

eede

d P

PM

O h

as p

lans

to fa

cilit

ate

dom

estic

indu

stry

an

d S

ME

s O

EC

D/D

AC

ass

essm

ent o

ngoi

ng

－133－


T: +44 (0)20 8643 3311 F: +44 (0)20 8643 8232


www.crownagents.com

－135－

APPENDIX 4 : STUDY OF NATIONAL PROCUREMENT SYSTEM (PAKISTAN)

－137－

Study of National Procurement System of Pakistan


Report December 2012


－139－

Study of

Table

List of Ab

Sectio

Section

1. Stud

2. Pur

3. Met

Section

4. Ove




Section

8. Rec8.1 Le8.2 Ins8.3 Ca8.4 Co8.5 Ov

Appen

Append

f National Pro

e of Cont

bbreviations

on

n 1: Introd

dy of Procu

pose of Re

thodology

n 2: Summ

erview of P





n 3: Recom

commendaegal Frameworstitutional Framapacity Develoomplaints Mecversight and E

ndices

dix A: Pro

ocurement S

tents

duction

urement S

eport

mary of Na

Procureme



g and Commun


mmendatio

tions rk mework opment chanism Enforcement

ocurement

System of Pa

ystems an

ational Pro

nt System

Framework

es and Prac


ment System

ons

t Documen

akistan

i

d Capacity

ocurement

k

ctices

n-Consultancyvices

ms

nts from P

y in South

t System

y Services

PRA and P

Asia

PEC Websi

Crown

tes

n Agents

(ii)

Page

1

2

2

2

5

6

6688

1010101112131414

141415

16

171717171717

Page

19

－141－

Study of

Append

Append

List o

EA

EOI

FIDIC

JICA

JV

ODA

PA

PEC

PPRA

PP Regul

PP Rules

RFP

Rs

SBD

SOP

TOR

UNCITRA

This docnot be re


f National Pro

dix B: PEC

dix C: Inte

f Abbrev

Exec

Expre

Fede

Japa

Joint

Offici

Procu

Pakis

Pakis

lations Publi

s Publi

Requ

Rupe

Stand

Stand

Term

AL Unite






ocurement S

C Accredita

egrity Pact

viations

cuting Agency

ession of Inter

eration Interna

n Internationa

Venture

ial Developme

uring Agency

stan Engineer

stan Public Pr

ic Procuremen

ic Procuremen

uest for Propo

ees

dard Bidding D

dard Operatin

ms of Referenc

ed Nations Co








ance UK por

System of Pa

ation Proc

t (Bidders

rest

tionale des In

al Cooperation

ent Assistance

ing Council

ocurement Re

nt Regulations

nt Rules

sals

Document

g Procedures

ce

mmission on I






rt; Sea Expor

akistan

ii

cedure

)

genieurs-Con

n Agency

e

egulatory Auth

s

s

International T







seils

hority

Trade Law





products. use sub-



FS 332

Crown


234

n Agents

21

23

should

－142－

Study of National Procurement System of Pakistan Crown Agents

1


－143－


2

1. Study of Procurement Systems and Capacity in South Asia The quick and appropriate implementation of Official Development Assistance (ODA) programmes by the Japan International Cooperation Agency (JICA) is dependent on Executing Agencies (EAs) having the necessary systems, organisation, operational rules and capability to undertake the required procurement procedures smoothly. This capability depends on both the degree of procurement experience of each EA and on the degree of maturation of the national procurement system.


2. Purpose of Report As part of the study, this report provides an overview of the national procurement system of Pakistan at federal level. It provides a general summary of the government system, based primarily on the legal and regulatory framework. Details on specific EAs can be found in separate capacity assessment reports.



This study of the national procurement system for Pakistan is based on the following documents downloaded from the website of the Pakistan Public Procurement Regulatory Authority http://www.ppra.org.pk/ under the title “Pakistan Procurement Code, 3rd Edition:

The Public Procurement Regulatory Ordinance 2002

The Public Procurement Rules of 2004, amended 2006 and 2008

The Public Procurement Regulations of 2008

The PPRA Guidelines of 2009

The Consultancy Services Regulations of 2010

Frequently Asked Questions

Manual of Procurement Policies and Standard Bidding Documents for Goods, Works and Services of PPRA, Government of Pakistan

Six Standard Bidding Documents of the Pakistan Engineering Council

Thirteen Procurement documents (Procedures) approved by the governing body of the Pakistan Engineering Council

Section 3 provides brief recommendations for strengthening the national procurement system.

Note: JICA uses the terminology Executing Agency to refer to public organisations either receiving or being considered for support from the Japanese Government. However, Pakistan’s

－144－


3

procurement documentation uses the term Procuring Agency (PA) to refer to public organisations. In this report both terms are utilised, with usage determined by the context.

－145－


5


－147－


6

4. Overview of Procurement System The Government of Pakistan established its public procurement system in 2002, through the Public Procurement Regulatory Ordinance. This established the Public Procurement Regulatory Authority (PPRA) as the regulatory body for public procurement in Pakistan and PPRA has since issued various Rules, Regulations and Guidelines governing procurement at federal level. The public procurement system is also shaped by various guidelines and documents of the Pakistan Engineering Council (PEC) and the Planning Commission.

Pakistan’s federal system of government is reflected in its public procurement system. While the Ordinance has country-wide application, each province has its own lower level regulatory documents and establishes its own regulatory authority.

There have been no significant changes to the public procurement system since the issue of the Ordinance in 2002 and we are not aware of any planned reforms.


5.1 Legal Framework

5.1.1 Laws and Regulations

The legal framework for public procurement in Pakistan is based on the Public Procurement Regulatory Authority Ordinance, 2002, which established PPRA. Unlike many national procurement laws, the Ordinance does not contain any rules or methods for undertaking procurement; its purpose is solely to establish PPRA, whose functions include recommending other rules, regulations and policies for public procurement. Since PPRA’s formation, the following Rules, Regulations and Guidelines have been issued to specify how public procurement should be undertaken:

The Public Procurement Rules of 2004, amended 2006 and 2008 (PP Rules)

The Public Procurement Regulations of 2008 (PP Regulations)

The PPRA Guidelines of 2009

The Consultancy Services Regulations of 2010 In addition PPRA has issued the following guidance documents, although their legal status is unclear:

Frequently Asked Questions

Manual of Procurement Policies and Standard Bidding Documents for Goods, Works and Services of PPRA, Government of Pakistan, which is also referred to as Standard Operating Procedures (SOP).

Collectively, the above documents forming the legal, regulatory and guidance documents are referred to as the Pakistan Procurement Code. The various parts of the Pakistan Procurement Code appear to have been prepared at different times and influenced by different sources and authors. This has resulted in some discrepancies or lack of clarity between different documents, particularly in the area of consultancy services where the Consultancy Services Regulations remain subject to the PP Rules, but the regulations themselves take a differing approach to procurement. Certain aspects of a procurement system which are usually found in higher level documents in most countries are covered only in the SOPs.

5.1.2 Other Applicable Rules

All public entities must follow the rules of PEC when undertaking civil engineering procurement processes; see further details in section 5.3.5 below. In addition to the Pakistan Procurement Code, various procurement and contractual issues are subject to the following laws and ordinances:

－148－


7

Insurance Ordinance 2000

Environmental Protection Act 1997

Income Tax Law / Ordinance

Arbitration Act 1940

Codes of Civil and Criminal Procedure

Contract Law 1875

Planning, Procurement and Contracting Guidelines prescribed by Planning Commission of Pakistan

Financial Rules, Accounting and Auditing procedures prescribed by the Ministry of Finance and Auditor General of Pakistan

Internal Codes of Practice developed by respective PA under the powers and authority given through the legal instrument called the Act of Parliament under which each PA is established.

5.1.3 Standard Bidding Documents

Prior to the formation of PPRA, PEC had a key role in the management of public procurement. As part of this role, PEC was assigned responsibility by the Planning Commission and Executive Committee of the National Economic Council (Pakistan) for the preparation of Standard Bidding Documents (SBD) to bring uniformity to the use of the SBDs in all public procurements and for “policing” their utilisation. Since the formation of PPRA, when this role passed to PPRA, PEC has continued to prepare SBDs for publishing by PPRA; six basic SBDs have been harmonised with the PP Rules and an additional 13 documents are on the PEC website for download and use, pending final agreement between PPRA and PEC on use of the documents.

Since PPRA became responsible for the issue of SBDs, the PEC SBDs have been mandated by the Planning Commission of the National Economic Council of Pakistan for use in public procurements in Pakistan, both at federal level and for use by PAs governed by provincial PPRA’s (see section 5.1.4 below for further details).

Six SBDs of the PEC, comprising three for Works and three for Engineering Consultancy Services, have been mandated for use by all public bodies on the 12 February 2008 and again on the 24 December 2009. The General Conditions of Contract used in these SBDs are those issued by the International Federation of Consulting Engineers 1 (Federation Internationale des Ingenieurs-Conseils (FIDIC), and are commonly known as the FIDIC Conditions of Contract. (The version used is the fourth edition, 1987, reprinted in 1992 with further amendments). FIDIC provided copyright permission for a single use.

Thirteen other Procurement documents were approved by the governing body of the PEC on the 10 September 2011 and are available from the PEC website at http://www.pec.org.pk/Downloads.aspx#biddocs1. The documents are listed in Appendix A to this document. These documents are not approved by PPRA and thus could be construed as advisory or optional procedures for procurement, although a link to the documents is provided on the PPRA website. There is therefore potential confusion or conflict over which organisation has the required authority to issue SBDs (PPRA, PEC or the Planning Commission of Pakistan) and which SBDs have been formally issued.

It is a major weakness in the operations of PPRA that they have not produced any standard procurement documents for use by all PAs, including documents to cover procurement of goods, non-consultancy services and non-engineering related consultancies.

1 FIDIC Secretariat, P.O. Box 86, 1000 Lausanne 12, Switzerland e-mail: [email protected]

－149－


8


The PP Rules apply to all public entities including public companies and academic bodies (subject to full or majority government ownership or control), local bodies and bodies with federal loans or grants. This brings challenges in monitoring compliance with the PP Rules, as well as questions of the suitability of the legal framework for smaller, lower spending PAs.

The PP Rules applies to goods, construction, consultancy services and other services, with exceptions that are in the national interest. The national interest is not defined but is assumed to be for security, strategic or defence procurement when so decided by government. This security exception is potentially open to abuse and is no longer recommended in standards such as the 2011 Model Law on Public Procurement issued by the United Nations Commission on International Trade Law (UNCITRAL), although it remains common across the world.

Additionally, PPRA can recommend to government that an exception should be granted to any procurement under Section 21 of the Ordinance. This potentially provides an opportunity for additional exemptions to be provided under pressure from PAs or government.

There is a further exception to application of the PP Rules where procurement must follow donor guidelines under a financing agreement. This is important for implementation of ODA by JICA, allowing JICA Guidelines to prevail over national law.


Procurement is decentralised, with the chief of each PA responsible for ensuring procurement activities are carried out and the central regulatory body, PPRA, providing oversight. There does not appear to be any mechanism for PPRA to monitor PAs to ensure compliance. This situation is made more difficult by a shortage of staff in PPRA who have the procurement training or experience to undertake the task.


Each PA is understood to be required to establish a Procurement Unit or designate a unit with responsibility for procurement and contract management, although this requirement is not stated in either the PP Rules, Regulations or SOPs. Reference is made in the SOPs to a PA’s responsibility for selecting evaluation committees.

Procurement Units must generally obtain approvals for procurement from the “Relevant Authority” within the governing Board of the PA or the chief executive of the PA in accordance with the code of practice on delegation of powers. The chief of the PA approves bidding documents, while evaluations are approved according to value. The head of the PA has responsibility for financial management, in addition to procurement. The lack of a clear statement within the procurement legal framework on who the relevant authority is indicates a weakness in the system.


PPRA was established under the Public Procurement Regulatory Authority (PPRA) Ordinance, 2002 and is primarily a regulatory body, with functions in the following areas:

Policy and Regulatory Framework: recommending revisions to or formulation of new laws, regulations, rules and policies, codes of ethics, guidelines and manuals in relation to procurement and the inspection/quality of goods services and works, as well as reporting to government on procurement issues;

Monitoring: monitoring application of the laws, rules, regulations in relation to procurement and inspection/quality of goods services and works;

Capacity building: arranging training and other programmes for public sector procurement staff, advising PAs on their interpretation in relation to procurement and inspection/quality of goods services and works and making recommendations for improvements in their operational setup.

Producing SBDs is not listed under PPRA’s functions but is considered by PPRA as part of its role.

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This range of functions is consistent with those of regulatory bodies worldwide and the absence of any procurement operational/transactional functions or involvement in the procurement of PAs avoids any conflict with its regulatory functions. However, while legal requirements are adequate, the PPRA appears to lack the capacity to effectively fulfil its mandate. Currently capacity building of public procurement staff is limited to two day seminars, primarily being undertaken by PPRA in Islamabad.

It is unclear what approach PPRA plans to undertake in monitoring compliance with the PP Rules and Regulations as it has insufficient resources to adequately undertake the function. The Office of the Auditor General is responsible for auditing all public bodies, however this is understood to be an accounting audit not a procurement audit to ensure compliance with the Ordinance and subsidiary documents.

PPRA is currently located in 1st Floor FBC Building Near State Bank, Sector G-5/2, Islamabad. It is understood that funding has been agreed by Government for PPRA to construct their own offices in Islamabad. Currently there is no information available as to when any move is likely to take place.

5.3.3 Provincial PPRA Organisations

Under Amendment 18 in the Constitution of Pakistan, called the Constitution (Eighteenth Amendment) Act, 2010, the respective provinces have been assigned the powers and authority of PPRA in respect of procurements using provincial funding. Each province is required to set up a PPRA organisation to undertake responsibility for public procurement under the auspices of the provincial governments. Each of these bodies is totally independent and there is no obligation for the separate organisations to work together or for them to work with the federal PPRA in Islamabad. There is potential therefore for the organisations to develop divergent and possibly contradictory interpretations of the Procurement Rules and to prepare and issue different procurement documents.

The implications for suppliers and contractors are that they have to understand and operate four potentially similar but slightly different procurement processes and that practises and documents that are accepted by one “PPRA” may be rejected by another.

This report concentrates on the federal system and rules.

5.3.4 Procurement Qualifications and Education

Currently there are no educational qualifications in procurement that are recognised by PPRA and no requirement for PA staff undertaking procurement or even for PPRA staff to have a minimum level of procurement training. This is considered a major weakness in the Pakistan public procurement system.

PEC has responsibility for the registration of engineers, consulting engineers, constructors/operators accreditation of engineering programmes run by universities/institutions for ensuring and managing continuing professional development. PEC have recently introduced procurement modules into the curriculum for all engineering qualifications in response to the shortage of procurement specialists in Pakistan.

5.3.5 Pakistan Engineering Council

PEC is a statutory body, constituted under the PEC Act 1976 (V of 1976) amended 24th January 2011, to regulate the engineering profession in Pakistan. The PEC Act defines “professional engineering work” as the giving of professional advice and opinions, the making of measurements and layouts, the preparation of reports, computations, designs, drawings, plans and specifications and the construction, inspection and supervision of engineering works. PEC’s main functions include the registration of engineers, consulting engineers, constructors/operators and the accreditation of engineering programmes run by universities/institutions. As discussed in section 5.1.3 above, it has also been involved in preparing standard bidding or contract documents, as well as construction cost data, conciliation and arbitration procedures and guidelines for bid evaluation, prequalification and price adjustments for construction and consultancy contracts. PEC maintains a central register of all engineering consultants and contractors, as discussed further in section 6.1 below. This is of vital importance in the procurement process as all

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engineering contractors operating in Pakistan must be registered with PEC. A separate registration is required for all Joint Ventures (JV) operating in Pakistan. The requirement for JV registration is a formality provided each member is already registered with PEC. As noted above, in certain areas, such as the issue of SBDs, there is still some degree of confusion as to the respective responsibilities of PEC and PPRA for procurement, although PAs all reported that PPRA was responsible for public procurement in Pakistan.



There are no restrictions on participation in public procurement based on nationality; the PP Rules and Regulations contain no requirements for suppliers to register as a condition of participation in open competitive bidding or request for quotations procurement. However, PPRA includes a registration facility for suppliers on its website. The registration process is not mandatory and the information required is principally; name, address, contact details, products/services offered, tax registration numbers and PEC registration details if applicable.

Separately, all engineering suppliers are required to register / be accredited by PEC if they wish to participate in public tenders. The PEC accreditation process is used to pre-qualify suppliers and determines the category(ies) of contract\works that can be undertaken by each registered company. The categories are determined by a combination of experience, number of qualified staff and financial strength. This requirement also applies to international companies wishing to participate, as well as to Joint Ventures (JV). Registration of a JV is not a precondition for international companies prior to bid but is required prior to contract signature. All JV partners must be separately registered with PEC before a JV can be registered. The PEC accreditation process is included as Appendix B.

There is a formal process of domestic preference in place for all public procurements, unless this is overridden by a donor’s guidelines and is written into a grant or loan agreement.

PAs are required to set up a mechanism for permanently or temporarily debarring suppliers/ contractors provided the process includes a mechanism for appeal. Suppliers may be blacklisted by PAs for an unspecified period and a list of blacklisted suppliers is displayed on PPRA’s website. Suppliers may be blacklisted for either consistently failing to provide satisfactory performance or being found to be indulging in corrupt or fraudulent practices. Included on the PPRA website is a link to suppliers debarred by the World Bank and it is assumed that these suppliers are also barred from participating in public tenders. Currently there are 10 Pakistani suppliers on the PPRA blacklist, of which three were blacklisted in 2012 and the first supplier was backlisted in 2004.

Notwithstanding the above, our interviews with PAs suggest that most public bodies have no formalised procedure for monitoring supplier/contractor performance and that unofficial blacklists are utilised which are not notified to PPRA. Donors are unwilling to accept these unofficial blacklists as they do not contain documentary evidence to support contractors’ exclusion or a method for monitoring on-going performance. Therefore requests by PAs to exclude poorly performing suppliers\contractors frequently fail, partly due to the poor procedures and record keeping of PAs.


Requirements for procurement planning include the following:

procurement plans for all procurements as part of the annual budget forecast which should be reviewed quarterly;

a procurement plan should be included as part of the approval process for new projects under the Planning Commissions’ PC-1 document\process;

an overall procurement plan should include a listing of all forecast procurements for goods and services for each PA.

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There is a sample procurement plan template on the PPRA website, however the format does not correspond to the detailed requirements of SOP 1 of the procurement manual. The SOP states the following information should be included; procurement timetable, sources of supply – local or international, costs, inspection, insurance, methods, packaging, any need for pre-qualification and types of contract (framework, phased deliveries).

There is no limitation on the value of the planned procurement that should be included in the plan.

PAs are required to send a copy of all procurement plans to PPRA. Currently there are only eleven procurement plans on the PPRA website and none of the plans follow the format suggested by PPRA. It is unlikely that PPRA has any method of monitoring compliance with the requirement for procurement planning by PAs. Discussions with PAs indicated that there is no requirement in their working procedures to provide Procurement Plans to PPRA.


The PP Rules states that Open Competitive Bidding is the principal method of procurement for goods, services and works, with other methods to be used only as permitted in the PP Rules on defined grounds. Choice of procurement method is also linked to financial thresholds included in the PP Rules. However, PAs may request agreement from PPRA for revised financial thresholds that are appropriate to their individual circumstances.

The PP Rules thus have a preference for competitive bidding but also provide other methods suitable for high and low values and for consultancy services, as well as goods, works and non-consultancy services. PAs are responsible for setting authority levels for prescribing the method of procurement utilised and getting PPRA approval for these limits. It is not apparent how closely this process is followed. There is no explicit prohibition on the splitting of requirements to avoid procurement thresholds unless procurement has already been advertised. The main permitted methods for goods, works and consultancy services are:

Open competitive bidding, the preferred method, which may involve one or two-stage bidding, the latter for complex requirements. Pre-qualification may be used under open bidding and advertising may be national or international.

Request for quotations, This method of procurement may be used for procurement below Rs 100,000, where the items being procured have standard specifications, a minimum of three quotations are obtained and the lowest bid is accepted.

Direct Contracting, which is limited to specific circumstances, some of which require approval by an appropriately appointed authority. It is permitted for procurement where the items being purchased are spare parts or supplementary services from the original manufacturer or supplier, only one manufacturer or supplier exists or where a change of supplier would result in the PA acquiring items with different technical specifications and result in operational problems. This method may also be used in an emergency situation or where prices are fixed by government or another duly appointed body.

Various limits apply, depending on the grounds for use of direct contracting, such as a maximum three years duration or repeat orders not exceeding fifteen percent of the original cost.

Negotiated tendering, a PA may engage in negotiated tendering with one or more suppliers where goods are manufactured for a specific requirement, where copyright or intellectual property rights exist or where extreme urgency is required due to events unforeseen by the PA and normal time limits cannot be met for reasons not attributable to the PA. A written explanation and authorisation for using this method must be recorded.

Petty cash purchases, PAs are not required to use the normal procurement processes of bidding or quotations for petty cash purchases below RS 25,000.

Open competitive bidding, request for quotations and direct contracting are broadly equivalent to the International Competitive Bidding, shopping and direct contracting methods in the JICA Guidelines. However, there is no restricted bidding method which would be equivalent to JICA’s Limited International Bidding method.

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Although separate regulations have been issued for consultancy services, which include various methods of selection, the PP Rules, and hence the procurement methods above, also apply to consultancy services. This contrasts with the approach taken by JICA, where separate guidelines with alternative methods govern the procurement of consultancy services.



Bidding may be with or without prequalification. Prequalification is not mandatory but may be used for large and complex contracts at the discretion of the PA. All civil engineering contractors must be registered with PEC. The PEC registration process is frequently used to pre-qualify suppliers and determines the category(ies) of contract\works that can be undertaken without consideration of the nature and site conditions, as is the normal process for pre-qualification.

Qualification criteria must be stated in bidding, prequalification and requests for proposal documents and must relate to areas such as technical qualifications, equipment, past performance. There are mandatory eligibility requirements such as legal capacity, financial capability, taxation status, not being debarred, no criminal convictions etc., but these are given only in the SOPs.

Invitations to bid or prequalify must be published in daily newspapers of national circulation (or internationally for open international bidding) and on PPRA’s website. Where the PA has its own website, the notice may also be published there.


PAs are required to prepare specifications which allow for the widest possible competition. Particular brands or trademarks are only permitted where objective description is not possible and on the basis that equivalent products are also acceptable.

Standard templates are provided for a limited range bidding documents with specified content including clear descriptions of the procurement need, instructions on the bidding process, the evaluation criteria and methodology including any preferences and the terms and conditions of the contract. As previously mentioned these templates have not been approved by PPRA, though there are links to the documents on the PPRA website. The bidding documents available are included in Appendix A along with links to the websites from where they can be downloaded. There are no sample templates for Requests for Quotations or petty cash requirements.

Bidders may be charged fees for bidding and prequalification documents, which are to recover the cost of printing and providing the documents only.

A deadline for receipt of bids must be set, with bids kept unopened until this time and any late bids rejected. The PP Rules set minimum bidding periods of at least:



However, there is a discrepancy in SOP 7 which states a minimum of 45 days for international tendering. There are no set bidding periods stated for requests for quotation.

When bid securities are required, their value must not exceed 5% of the bid value. However, for two envelope bidding the bid security amount must be common to all bidders, whilst not exceeding 5% of the PA’s budget for the procurement concerned.

Bids must be opened in the presence of bidders’ representatives at the time and place stated in the bidding documents, immediately after the deadline for bid submission. There is no requirement for requests for quotation to be opened in public.

6.4.3 Evaluation


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Award is to the lowest evaluated substantially responsive bid; a preference of 15% is normally given to Pakistani bidders (or foreign bidders in joint venture with a Pakistan bidder) under international bidding or when there is competition with foreign bidders/goods.

Under the request for quotations method, the lowest evaluated quotation fulfilling specified requirements that is within the cost estimate is accepted.

The PA may negotiate with the highest ranked bidder regarding methodology, work plan, staffing and special conditions of the contract. There should be no negotiation with bidders over price.



Under the open competitive bidding method, an expression of interest (EOI) procedure may be used but is not mandatory. EOIs must be published on the PPRA website and must also be advertised in print media.

The evaluation of EOIs must be based on qualifications, experience and capacity. Shortlists must normally consist of more than 3 firms to ensure at least three bidders have the opportunity to respond, but there is no upper limit. Where an EOI procedure is used, only bidders who respond can be included in the short list and all applicants must be informed of whether or not they have been shortlisted.

The shortlist may be developed without advertising where the procurement is small and simple.

6.5.2 Request for and Submission of Proposals PAs are required to prepare terms of reference (TOR) stating the objective, goals and scope of services, as well as expected outputs.

There is a link on the PPRA website to the PEC website where standard templates are provided for request for proposals (RFP) documents with specified content including TOR, instructions on the submission of proposals, the selection method, evaluation criteria, minimum technical pass mark and weightings and the terms and conditions of the contract.

A deadline for receipt of proposals must be set, with proposals kept unopened until this time and any late proposals rejected. The PP Rules sets minimum bidding periods of at least 15 days for national bidders and 30 days for international bidders. Both technical and financial openings must be held in the presence of bidders’ representatives and financial proposals must be retained unopened until the notified time for the financial opening.


Technical evaluation must be based on the criteria and weightings in the RFP document, with a minimum quality threshold set. Criteria may include experience of the firm, proposed methodology, qualifications of key human resources, knowledge and technology transfer and, for international proposals, key Pakistani human resources.


Quality Based Selection. This method will be used for highly specialized and complex assignments, where quality is the only factor taken into consideration;

Quality and Cost Based Selection. This method shall be used where high quality is the prime consideration while cost is a secondary consideration;

Least Cost. This method will only be used for assignments of standard or routine nature, where well established practices and standards exist

Single Source or Direct Selection. This method will be used in exceptional circumstances, where it provides clear advantages over competition;

Fixed Budget. This method shall be used only when the assignment is simple, can be precisely defined and when the budget is fixed. The request for proposals shall indicate the

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available budget. Proposals that exceed the indicated budget shall be rejected. The ranking shall be based only on evaluation of technical proposals of the qualified bidders.

The Quality Based Selection, Quality and Cost Based Selection and Single Source or Direct Selection methods are equivalent to JICA selection procedures. The Least Cost and Fixed Budget methods are not contained in JICA Guidelines, but modelled on World Bank guidelines. However, as noted in section 6.3, as the Consultancy Regulations remain subject to the PP Rules, these selection methods must be used within the rules for each defined procurement method.

Negotiations may only be held with the selected consultant, although the PA can negotiate with the next ranked consultant if these negotiations fail. Technical negotiations are limited to the methodology, work plan, staffing and special conditions. Negotiations cannot seek to change fee rates.

Negotiations cannot be undertaken by a single member but require a negotiation committee.


PAs are required to announce the bid evaluation results ten days prior to the award of contract in the form of a report, but it is not clear where it is to be announced. PPRA has links on its website where 51 organisations have published awards, but this is a very small number and it is apparent that this mechanism is not commonly used.

There is no requirement for PAs to automatically debrief bidders following completion of a tender evaluation. However, PAs must write to each unsuccessful bidder notifying them of contract award. Following receipt of a request for a debrief PAs must prepare and issue a response within five days.

Contracts may be amended by written consent of both parties, but procedures for contract amendments are found only in the SOP. The PP Rules impose a maximum limit of 15% of the original contract value for repeat orders through direct contracting, which would limit the financial value of some contract amendments.

PP Rule 49 requires any disputes between parties to a contract to be settled by arbitration and further requires PAs to specify a method of arbitration in contracts, which is not inconsistent with the laws of Pakistan. In practice, this will usually be the Pakistan Arbitration Act, 1940, as amended. PEC also issued Rules of Conciliation and Arbitration in 2009.

6.7 Record Keeping and Communications PAs are required to maintain comprehensive procurement records. These records must be kept for a period of at least five years from completion of the contract or rejection of all bids. Regulation 4 lists the records which are required to be kept. These do not however include:

- A copy of the bidding document;

- Copies of bids received;

Paragraph 5.2 of the manual also makes reference to the need to retain records on procurement files although this falls short of giving explicit details of what is expected.

Certain provisions of the PP Rules require specific communications to be in writing, such as Rule 31 which requires that requests for clarification of bids, as well as the responses, are always in writing. However, there is no general rule requiring all communications to be in writing or confirmed in writing. The SOP further require certain key communications, such as records of pre-bid conferences and clarifications of bidding documents to be sent to all bidders.



The PP Rules requires bidders to lodge any complaint with the PA within 15 days after the announcement of the bid evaluation report.

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There are three weaknesses to the complaints system:

(1) Rule 48(2) requires a complaint to be lodged not later than 15 days after the announcement of the report, however according to Rule 35, the report only needs to be issued 10 days prior to the award of contract being made. Therefore, if a complainant lodges a complaint between 11 and 15 days they are inside the period of a legitimate complaint but it is possible that the contract award will have already been made. The timeframes therefore need to be aligned.

(2) Rule 48(4) states that merely lodging a complaint does not warrant suspension of the procurement process. This is understandable so as to prevent spurious complaints delaying legitimate procurement activities; however the Rule needs to be clearer on what does warrant suspension of the proceeding since at the moment this is not disclosed.

(3) The appeal process appears to be straight to the judiciary even though the original review by the PA lacks independence. There is therefore no provision for a further layer of independent administrative review, outside of the PA, for bidders to challenge procurement decisions. Appeal to the courts would usually be an expensive process, the costs of which may prevent genuine complaints from being taken forward for lack of funds to pursue the case through the legal system.

The public procurement system in Pakistan therefore lacks an effective mechanism for challenging procurement decisions and falls far short of international standards, such as those set by the United Nations Convention Against Corruption (which the Government of Pakistan ratified in August 2007) which requires a system of independent review and appeal.

The lack of such provision, and the concerns raised above are considered to represent a weakness in the complaints system. The lack of a clearly defined, and independent, complaints and appeals procedure has a negative impact on the transparency and integrity of the entire procurement system, as bidders are discouraged from making representations.


The Procurement Manual contains a code of conduct for public officials involved in public procurement. The code requires officials to act impartially and in the public interest, avoid conflict of interest, maintain confidentiality and not commit corrupt, fraudulent or collusive practices.

The PP Rules require all bidding documents with a budget of more than Rs 10 million to include an “Integrity Pact”. This is a declaration to be signed by bidders and the Buyer’s representative and covers bribery, misrepresentation, coercion, collusion, interfering with other bidders, seeking to influence the PA and conflict of interest. The bidder is required to declare any fees, commission, etc. that have been paid or are payable. The bidder is required to indemnify the buyer for any loss or damage incurred on account of its corrupt practices and to pay an amount equivalent to 10 times the amounts paid. A copy of the Pact is included as Appendix C.

It is not known how successful this pact is in preventing corrupt practices in procurement.

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8. Recommendations The following sections make recommendations for the strengthening of the national procurement system of Pakistan.

8.1 Legal Framework

Review all parts of the legal and regulatory framework (Rules, Regulations, Guidelines and SOPs), to ensure that they comply with international standards and fully cover all aspects of the procurement process and related requirements, such as blacklisting of suppliers and complaints. The review should aim to identify and remove all discrepancies between different documents and requirements in the regulatory framework; in particular, they should ensure that the rules governing consultancy services are clear.

Support PPRA to enable it to both review existing SBDs issued by PEC and develop appropriate SBDs and other templates for needs not addressed by PEC.

If any exemptions to application of the Ordinance and PP Rules are to be maintained, ensure that these are clearly and narrowly defined, to avoid abuse or widespread avoidance of the PP Rules.


The review of the legal and regulatory framework referred to in section 8.1 should address any ambiguity over the overlapping roles and responsibilities of PPRA, PEC and the Planning Commission.

Introduce arrangements to enable the federal and provincial PPRAs to work together, ensuring consistency in the interpretation of the legal framework.


Support the professionalisation of procurement through setting minimum requirements for staff working in Procurement Units or otherwise participating in procurement functions. Consider developing a mandatory procurement qualification for public sector procurement staff, as well as enhancing PPRA’s capacity to deliver capacity building support to PAs.


Significantly revise the complaints mechanisms to ensure access by bidders to an effective, independent system of review and appeal. Consideration should be given to establishing an independent, administrative body to review complaints, to ensure genuine access to independent review, as well as appeal to the courts. Timescales for the standstill period and submission of complaints should be obligated and the legal framework should include safeguards and rights for bidders in line with international standards; the UNCITRAL Model Law on Public Procurement provides a useful template.

8.5 Oversight and Enforcement

Strengthen PPRA’s capacity to conduct monitoring of procurement by PAs.

Ensure the introduction of adequate procedures for blacklisting of suppliers, including an independent appeals mechanism.

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Appendix A: Procurement Documents from PPRA and PEC Websites

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Bidding Documents from PPRA Website

STANDARD BIDDING DOCUMENTS OF PAKISTAN ENGINEERING COUNCIL

Notified Documents June 11, 2007 (Revised)

Standard Form of Bidding Documents (Civil Works).

Standard Form of Tender Documents for Procurement of Works (E&M).

Standard Form of Tender Documents for Procurement of Works (For Smaller Contracts).

Standard Form of Contract for Engineering Consultancy Services (For Large Projects)

Time Based Assignments.

Standard Form of Contract for Engineering Consultancy Services (For Large Projects)

Lump Sum Assignments.

Standard Form of Contract for Engineering Consultancy Services (For Smaller Projects).

Procurement Documents from the PEC website

The following documents have been approved by Governing Body in its 11th meeting (SRO Notification in progress) held on 10th Sep 2011.

1. Rules of Conciliation and Arbitration. 2. Standard Procedure for Evaluation of Proposals for Procurement of Engineering

Services

3. Standard Procedure and Formula for Price Adjustment

4. Standard Procedure for Evaluation of Bids for Procurement of Works

5. Standard Procedure for pre-qualification of constructors

6. Standard Procedure for pre-qualification of consultants

7. Standard Form of Bidding Documents for Procurement of Works on BOT Basis 8. Standard Form of Bidding Documents for Procurement of Works on Design and Build

Basis

9. Standard Form of Bidding Documents for Procurement of Civil Works (SSTE) 10. Standard Form of Joint Venture/Consortium Agreements and Memorandum of

Understandings

11. Standard Form of Bidding Documents for EPC/Turnkey Contracts

12. Standard Form of Bidding Documents for Procurement of Goods

13. Standard Form of Bidding Documents for Operation & Maintenance Contracts

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Appendix B: PEC Accreditation Procedure

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Accreditation Procedure: Appendix C

STEP 1 : (Month 1)

Institution submits accreditation / reaccredidation application including information/data according to the Proforma (AC-1) provided by the PEC. A master list of exhibits for the site visit, arranged according to different criteria should also be provided by the Institution.

STEP 2 : (Within 30 days after step 1)

Identifying the Visiting Team and its Convener by PEC EA&QEC; seek institutional input for any conflict of interest.

STEP 3 : (Within 2 months after step1)

PEC provides the Visiting Team with the visit instructions / guidelines, profile of the Institution / Program(s); including the archived accreditation report of the previous visit, if any.


Critical study including verification, by the Visiting Team, of the information furnished to the EA&QEC; (hard and soft copies provided).


Furnishing any additional information requested by the Visiting Team of PEC (through correspondence if necessary); Institution provides a master schedule of the site visit according to PEC visit plan.

STEP 6 : (Within 4th/5th month of the year after step 1 to 5)

Briefing to the visitation Team by its Convener to refresh the visit instructions / guidelines. Visit of the institution (Laboratories, Libraries, Workshops and other Infrastructure/Facilities) as per schedule; meet with administrative staff, faculty, students and alumni for reaccreditations of established programs.

STEP 7 : Discussions with the Management, Principal, Deans, faculty and others, enumerating the strengths and weaknesses of the programs. At this stage the institution may decide to withdraw the program(s) from consideration for accreditation;

STEP 8 : Discussions among Members of the Visiting Team followed by finalization of the Team Report (Shared with the institution for removal of factual errors, and for a rejoinder).

STEP 9 : Institutional Rejoinder/Comments to the report within 30 days of the receipt of theteam report. If the Institutional rejoinder is not received by the due date, it will be assumed that the Institution agrees to the observations of the Team.

STEP 10 : (Within 30 days after Rejoinder)

Submission of the Team Report by the Convener of the Visiting Team to the EA&QEC;

STEP 11 : (Within 6th /7th Month)

Consideration of the Report of the Visiting Team and the rejoinder, by EA&QEC;

STEP 12 : (Within 7th / 8th month)

Decision of the EA&QEC on the status of accreditation; Reporting the accreditation decision by EA&QEC to Chairman PEC.

STEP 13 : (Within 8th / 9th month)

Communication of the accreditation decision to institution(s) and issue the SRO.

STEP 14 : Entry into the First Schedule of the PEC Act and posting on PEC Website. After taking action on above steps, should a program be successful in obtaining accreditation, the entire process will be repeated at the expiry of the specified accreditation period. The period of full accreditation shall be 3 years. However, if accreditation is pended due to shortcomings identified the institution is required to provide a compliance report to PEC within 06 months highlighting corrective measures taken. This will be followed by a confirmatory visit.

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Appendix C: Integrity Pact (Bidders)

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T: +44 (0)20 8643 3311 F: +44 (0)20 8643 8232


www.crownagents.com

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APPENDIX 5 : STUDY OF NATIONAL PROCUREMENT SYSTEM (SRI LANKA)

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Report August 2012


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Study of National Procurement System of Sri Lanka Crown Agents

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2. Purpose of Report As part of the study, this report provides an overview of the national procurement system of Nepal. It provides a general summary of the government system, based primarily on the legal and regulatory framework. Details on specific EAs can be found in separate capacity assessment reports.




This study of the national procurement system for Sri Lanka is based on:

The website of the Ministry of Finance & Planning, Department of Finance - National Procurement Agency http://www.treasury.gov.lk/FPPFM/pfd/publications/npa.html

The Procurement Guidelines of 2006

The Guidelines, Selection and Employment of Consultants, 2007

The Procurement Manual, printed version, 2006 and supplements 1 to 25 issued amending the original manual

Consulting Services Manual, November 2007

The completed questionnaire for Sri Lanka is included at Appendix A. Section 2 of this report summarises the findings of the study, highlighting areas where national rules or practices differ significantly from JICA Guidelines. Section 3 provides brief recommendations for strengthening the national procurement system.

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4. Overview of Procurement System and Reforms The Government of Sri Lanka (GOSL) set up via a Cabinet Memorandum dated May 6 2004 the National Procurement Agency (NPA) under President Chandrika Kumaranatunge in accordance with the Parliament Act, 2004. The memorandum was based upon a Country Procurement Assessment Report of the government tender procedure prepared by the WB in June 2003.

In 2008 the NPA was subsumed into the Ministry of Public Finance and Planning, Department of Public Finance (DOPF). As a result of this the Procurement Department in the DOPF is less independent than NPA and its role is largely administrative. There is no on-going procurement reform process in Sri Lanka though it is understood that the ADB and the WB has recently undertaken a study of the national procurement system and a draft Procurement Report is currently being discussed with the GOSL.


5.1 Legal Framework

Many countries prefer to issue the most important procurement rules through a law or regulations to ensure they are legally enforceable and cannot easily be changed. However, this is not the route undertaken by the GOSL. Instead Procurement Guidelines (PG) were prepared in cooperation with funding agencies, including the World Bank, ADB and JBIC, and were harmonised with their guidelines to the extent possible. Changes to the Procurement Manual (PM) were issued via supplements and circulars issued by the NPA. This practise is continued by DOPF. Consequently, multiple supplements to the procurement manual have been issued making it difficult to follow. In addition the NPA website, which is still in place contains copies of repealed guidelines.


The PG applies to all procuring entities (PE) carrying out procurement partly or wholly funded by the Government of Sri Lanka (GOSL) or a foreign funding agency. PEs include:

ministries, departments, statutory authorities

provincial councils and local authorities

government corporations and government owned companies

any body, wholly or partly owned by GOSL or where the GOSL has effective control of the body

The PG applies to all procurement. There are alternative rules for Special Procurements i.e. commodities, spare parts, vehicle and equipment repairs, publications, fuel, pharmaceuticals and medical equipment and information systems. These are variations to the existing PG, rather than an exemption.

The Guidelines for Selection and Employment of Consultants (CG) apply to all types of consultants, including organisations and individuals. No types of consulting services excluded. However, there is a standing Cabinet Appointed Procurement Committee (CAPC) for special circumstances requiring deviation from general procurement procedures, suggesting exceptions are permitted.

The PGs apply to all procurement, irrespective of funding. However, where a funding agency mandates use of its guidelines, they prevail over the PG/CG to the extent that they conflict. Therefore procurement can be undertaken under ODA by JICA, allowing JICA Guidelines to prevail over national guidelines.

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All procurement is decentralised. Secretaries to line ministries are responsible for procurement actions, as Chief Accounting Officers (CAO) with similar responsibility also given to Chief Secretaries of provincial councils.

All procurement activity and decisions are decentralised, with the exception that committees for higher value procurement are appointed by NPA.


The officer-in-charge, such as the head of department or project director is responsible for procurement and although the PG refer to Procurement Specialists (PS) this role is not clearly defined. The PE responsibilities include communications, preparing and issuing invitation documents, preparation of data prior to the evaluation and supporting committees including issuing minutes of meetings. There are two key committees, who are jointly responsible for the procurement process for goods/works:

Procurement Committees which are responsible for ensuring funds availability, agreeing the procurement time schedule (PTS), determining arrangements for advertising, sale of documents, receipt and opening, agreeing the type of documents, reviewing evaluation reports and recommending/deciding award. This committee is appointed by the CAO.

Technical Evaluation Committees (TEC) which are responsible for recommending the PTS, reviewing/approving specifications, invitation documents and addenda, participating in pre-bid meetings, agreeing bid opening procedures, participating in negotiations if directed by the PC, reviewing draft contracts. Function of conducting evaluation not directly listed but implied by other parts of PG. TECs may differ for each procurement activity. Members are appointed by the DOPF.

For consultancy services, there is a single Consultants Procurement Committee (CPC) with responsibility for the entire selection process including ensuring funds availability, agreeing the PTS, deciding the selection method and contract type, evaluating and approving the shortlist and RFP including TOR, individual technical scoring and preparing the technical evaluation report, financial evaluation, deciding/recommending award, reviewing the draft contract. CPCs vary according to the procurement, with composition stated in the manual. They are appointed by the Chief Accounting Officer except for Cabinet Appointed Consultants Procurement Committees (CPCC) for high value procurement, who are appointed by DOPF.

5.3.2 Regulation and Oversight 5.3.2.1 The Objectives and functions of the NPA

The objectives and functions of NPA as set out in the Procurement Manual (PM) are that the NPA is the principle authority for formulating and effecting amendments to these Guidelines; issuance of manuals, SBDs, evaluation methodologies, standard contracts, and specifications. NPA was established under a directive issued by H.E the President of Sri Lanka with the following objectives.

To streamline the government procurement system and standardize the same to be of equal application to all government institutions.

To ensure better transparency and good governance in relation to government procurement awards.

To ensure that all parties who are eligible and desirous of participating in public bidding are afforded an equal opportunity.

To ensure that when procuring the government will get best value for money in terms of price, quality and timely delivery.

To ensure that the government procurement system is made efficient and simplified in order to promote development needs of the country.

To put in place a monitoring system relating to selection of successful bidders and award of government tenders.

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5.3.2.2 The key functions of the NPA as set out are:

Develop, implement and review policies in procurement of goods, works and services

Advise the Ministries and Tender Boards on procurement Activities

Standardizing of goods and equipment

Simplification of Review and Approval Process

Review Procurement Procedures & Procurement Plans of all Government Institutions

Monitor quality and progress on procurement projects

Formulate accreditation system on selection of members for TECs and Tender Boards

Appoint Tender Board and Technical Evaluation Committee members for procurements of higher values - Cabinet Appointed Tender Boards, Cabinet Appointed Negotiating Committees and Project Committees

Introduction of code of conduct and ethics for Procurement Procedures

Introduction of performance and technical auditing

Capacity Building in the field of Procurement Management 5.3.2.3 Revised role of the NPA under the Ministry of Finance and Planning

The government officially instructed the NPA in December 2007 to close down operations and hand over its assets, liabilities and staff before January 31, 2008. Subsequently the NPA was subsumed into the Ministry of Public Finance and Planning, Department of Public Finance (DOPF). Currently this body is only responsible for:

Formulating and effecting amendments to the PGs

Maintaining and updating a database of qualified technical specialists who are qualified to be members of TECs. Individuals should be limited to sitting as members of three TECs concurrently

Selecting qualified technical specialists to sit on TECs 5.3.2.4 Role of the Institute for Construction Training and Development (ICTAD)

ICTAD is a department of the Ministry of Construction, Engineering Services, Housing and Common Amenities and has several functions in the public procurement process in respect of the construction industry. According to the ICTAD website http://www.ictad.lk/sub_pgs/about_areas.html# the organisation is responsible for:

Recommending strategies for the development of the Construction Industry and assist in their implementation.

Regulating, registering and grading of Construction Contractors.

Promoting the professionalism of consultants and coordinating the activities of professional bodies and assisting in the formation of similar bodies in the Construction Industry.

Promoting and facilitating export of construction industrial services by undertaking overseas contracts.

Providing advisory services to the Construction Industry.

Reviewing human resource requirements of the industry and assisting in the provision of training facilities.

Promoting the advancement of the skills and expertise of personnel and professional bodies in the Construction Industry.

Promoting and undertaking research on matters related to the Construction Industry.

Promoting Quality Assurance and productivity in the Construction Industry.

Promoting and granting assistance to the development of industries related to the Construction Industry.

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Undertaking or assisting any other activity for the promotion of the Construction Industry. Due to a lack of funding ICTAD is unable to undertake most of these functions and finds great difficulty in recruiting and retaining qualified staff, Currently ICTAD undertake the following additional procurement activities:

Maintaining, updating and selling all civil engineering procurement tender and contracting documents. (This is the main source of income for the organisation. ICTAD receives a fee for all civil engineering tender documents issued in Sri Lanka)

Maintaining, updating and selling technical specifications for use by civil engineering contractors for such things as Guidelines for Site Investigations for foundation of Buildings (1994) and Guide for Operation of Metal Quarries.

Provide advice on Contract Administration and Disputes and Facilitating / Mediating / Adjudicating to resolve disputes between contractors and employers.

5.3.2.5 World Bank report on public procurement

It is understood that the World Bank (WB) has recently commissioned a report on the state of public procurement in Sri Lanka. However, the report has not as yet been made public as it is being discussed with government. It is likely that this report will recommend changes to the role of the Procurement Regulatory Body for procurement in Sri Lanka. ADB are currently formulating a project with ICTAD to assist registering and grading of contractors through a new database.



Foreign and domestic bidders are treated equally under ICB and NCB, except in regard to ICTAD registration (foreign bidders are not required to register) and domestic preference. Preference will be 10% for works and 20% for goods if funded by GOSL. Preferences of 7.5% and 15% apply to contracts funded by the WB and ADB.

NPA theoretically maintained a database of defaulting contractors/suppliers/consultants for high value contracts (> LKR 1,000,000 for consultancy, > LKR 5,000,000 for others) and for bidders defaulting on bid declarations. Defaulting contractors/ suppliers are debarred from future contract awards. This is to be issued to PEs every 6 months and published on NPA’s website. PEs may maintain databases of defaulting contractors/suppliers for contracts < 5,000,000. This is made available to other PEs on request.

Discussions with Procurement Entities suggested that DOPF no longer undertake this function and that PEs maintain their own unofficial blacklists. This process should theoretically be tied into the ICTAD registration process as contractors could have their registration status enhanced or reduced depending upon performance. However, the ICTAD process does not cover international contractors.


PEs are required to prepare:

a Master Procurement Plan (MPP) covering 3 years for goods/works or 2 years for consultancy, with detail for the succeeding year. MPP is to be updated at least every 6 months. The contents of procurement plans are specified in detail, including timings, costs, methods, packaging, any need for pre-qualification and types of contract.

A procurement time schedule (PTS) is required for individual procurements and procurement cannot to commence without a firm commitment of funds

There is a proscribed format for the MPP in the procurement manual. Additionally a Total Cost Estimate (TCE) must be prepared for goods/works and a cost estimate and budget for consultancy services

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PEs are allowed to Slice and Package contracts to remain within authorisation limits for procurement. For example a ten kilometre road could be tendered as 3 slices or packages with each being awarded and contracted separately and potentially the same contractor being awarded each package.


NCB is the default method for GOSL funded projects and used for donor funded projects where agreed. ICB is used where domestic providers have limited capacity or where required by a donor. The following methods of procurement are permitted for goods, works and non-consultancy services: International Competitive Bidding (ICB) – where domestic capacity is limited or where

required by a donor National Competitive Bidding (NCB) – This is the default method where GOSL funds are

utilised. International bidders are excluded unless funding is provided by donors Limited/Restricted International/National Competitive Bidding (LIB/LNB) – This is only

used where there limited qualified sources available Shopping – This method is permitted for standard and low value purchases up to a

threshold in the PM. Direct Contracting – in exceptional circumstances, limited to exceptional circumstances

where prices are fixed by legislation, where standardisation justifies additional purchases of the same type, subject to limits, proprietary items, and where items are required from a particular supplier for guarantee purposes. Direct contracting is subject to a maximum value issued in circulars with Controls placed over repeat orders, including a limit of 50% on the original contract value and a 6 month time limit. Under this method emergency procurement is permitted in exceptional circumstances, such as manmade or natural disasters and where declared an emergency by GOSL. Approval required if above thresholds issued in circulars. Direct contracting is also permitted for community based participation.

Sole Source Selection is limited to exceptional cases such as for continuation of previous work where the original assignment was competitively selected, for an emergency operation or small assignments up to LKR 100,000 where only one organisation is qualified or has exceptional experience for the assignment. This method requires approval from the relevant CPC and funding agency.

Repeat Orders – Controls are placed over repeat orders, including a limit of 50% on the original contract value and a 6 month time limit

Force Account – is for procurement where it is difficult to define quantities, where bids at reasonable prices are unlikely and for emergencies. This method is being used by the Department for Irrigation to procure\disburse JICA funds under the National Disaster Rehabilitation Project.

Emergency Procurement – this method is detailed under Direct Contracting Community Participation in Procurement – for project sustainability or to achieve

specific social objectives with conditions given in manual. Two-Stage Bidding – this method is used where innovative approaches are required or

technically unequal bids are likely. Cabinet approval is required before this method can be initiated.

Two Envelope System – this method is used for turnkey projects, where design and build or supply and installation type contracts or alternate types of technical proposals are required.

The following methods of procurement/selection are permitted for consultancy services:

Quality and Cost Based Selection (QCBS) – this the default method for the selection of consultants

Quality Based Selection (QBS) – this method is used for complex or highly specialised assignments, which have a high downstream impact and where the best experts are needed or where proposals will not necessarily be technically comparable

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Selection under a Fixed Budget (FBS) – this method is used where TOR are precisely defined, inputs can be accurately assessed and the budget is fixed

Least Cost Selection (LCS) – this method is used for standard or routine assignments where well established practices exist

Selection Based on Consultant’s Qualifications (CQS) – is used when allowed under donor projects or preparation and evaluation of full competitive proposals is not justified either for assignments up to LKR 3 million or for higher value assignments, where highly specialised expertise is required and there are few qualified consultants.

Single Source Selection (SSS) – is for use in exceptional cases, such as for continuation of previous work where the original assignment was competitively selected for an emergency operation or for small assignments up to LKR 100,000 where only one organisation is qualified or has exceptional experience for the assignment. This method requires approval from the relevant CPC and funding agency.


6.4.1 Qualifications and Advertising For NCB, notices must be advertised in at least one widely circulated national newspaper, the NPA website and other relevant websites and for ICB, notices must be advertised in one widely circulated national newspaper, relevant websites, the UNDB or dgMarket and sent to embassies and trade missions worldwide.

Pre-qualification is required where the cost of preparing detailed bids could discourage competition, such as for large or complex works and custom-designed equipment, industrial plant and specialised services.



PEs are required to prepare specifications, plans, drawings, designs or other descriptions based on relevant objective characteristics and functions. Particular brands or trademarks are only permitted where objective description is not possible and on the basis that equivalent products are also acceptable. The Sri Lanka Standard Institution are responsible for determining national standards for products and where these are available they must be utilised. Where they are not available, international standards should be included in tender documents.

Both NPA and ICTAD have responsibility for preparing specifications, NPA include a number of functional specifications on their website and they also list the specifications available from ICTAD. The ICTAD specifications are only available for purchase.


Bidders may be charged fees for bidding and prequalification documents, which are specified in the PG and based on the cost incurred in preparation of the documents. Bidding documents for civil engineering works must also include a fee for ICTAD. The fees charged should not be so high as to deter competition.


21 days for NCB/LNB (or 14 days for restricted district construction contracts)

42 days for ICB/LIB

15 days for shopping.

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Bid securities are required for ICB/LIB, NCB and LNB as a bid declaration or bid guarantee/cash deposit. Guarantees are for a fixed amount, not a percentage. Where bid declarations are utilised can result in bidders being listed as a defaulter by NPA if breached.

The organisation of bid opening is the responsibility of PCs but may be delegated to a specific bid opening committee.

6.4.3 Evaluation


Award is to the lowest evaluated substantially responsive bid, however, where the lowest bids contain unrealistically low rates, and the explanation provided by the bidder is not satisfactory, the bid may be rejected. A higher performance security may also be requested.

Negotiation of rates is permitted with a bidder where only one bid is received and prices are higher than the budget. Negotiations are assumed to be prohibited in other circumstances, but this is not clearly stated.


6.5.1 Advertising and Shortlisting For complex consultancy assignments and those over LKR 2 million, notices inviting expressions of interest (EOIs) must be advertised in national newspapers. Adverts must also be in international media where international organisations are expected. In other cases, the PE may choose to advertise or to include consultants known from previous work, by other PEs or by donor agencies. For individual consultants, advertising is required for national experts for more than 1 year and international experts for more than 6 months. For civil engineering assignments all local consultants must be registered with ICTAD. ICTAD registration involves the categorisation of each applicant into grades based upon experience, financial capacity and technical speciality. The evaluation of EOIs must be based on qualifications, experience and capacity. First consideration must be given to organisations that express interest and have the relevant qualifications. Shortlists may include up to 7 organisations. They should normally comprise the same category of consultants i.e. not mixing organisations and individuals or private firms with NGOs and universities.

6.5.2 Request for and Submission of Proposals PEs are required to prepare terms of reference (TOR) stating the nature, time and place of services, tasks and expected outputs.

Standard templates are provided for request for proposals (RFP) documents with specified content including TOR, instructions on the submission of proposals, the selection method, evaluation criteria, minimum technical pass mark and weightings and the terms and conditions of the contract. The PG specify the permitted types of contract.

A deadline for receipt of proposals must be set, with proposals kept unopened until this time and any late proposals rejected. The PM sets minimum bidding periods as follows:

42 days for QCBS, QBS, FBS and LCS (international) 28 days for CQS and SSS (international) and QCBS, QBS, FBS and LCS (national) 21 days for CQS and SSS (national) 7 days for individual consultants

Bid opening of technical proposals should be undertaken in the presence of consultants who choose to attend, except for CQS and SSS. Consultants submitting qualified technical proposals are invited to financial openings, with 5 days’ notice for national shortlists and 10 days for international. During the bid opening names, scores and prices are to be announced.

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Technical evaluation must be based on the criteria and weightings in the RFP document, with a minimum quality threshold set. Criteria may include experience of the firm, proposed methodology, qualifications of key human resources, knowledge and technology transfer.

Award is to the first-ranked proposals, according to the selection method specified in the RFP.

The QCBS, QBS methods are equivalent to JICA selection procedures. FBS, LCS and CQS are not contained in JICA Guidelines, but modelled on World Bank guidelines.

Negotiations may only be held with the selected consultant, although the PE can negotiate with the next ranked consultant if these negotiations fail. Technical negotiations are limited to the TOR, scope of services, reports and facilities provided by the PE. Fee rates can only be negotiated where the QBS, CQS and method is used, but reimbursables can be negotiated under all selection methods.


Bidders for goods/works must be informed within one week of the award decision and given two weeks to make representation to the Secretary or Procurement Appeal Board if they wish. The process for publishing the award of contract is: The PE should publish promptly in its website (if available), the NPA website and/or any

other appropriate media The following details of contract awards should be included:

(a) description of the Goods\Works\Consulting Services for which bids\proposals were invited; (b) the names of all bidders\contractors\consultants who submitted proposals; (c) name of the successful bidders\contractors\consultant; (d) amount at which the contract was awarded; (e) in the case of a contract awarded to a foreign principal who has a local agent, the name of the

local agent. If requested by bidders the PE shall provide in writing the reasons why a particular bid was unsuccessful and/or in a debriefing meeting at the option of the bidder. The bidder is responsible for all costs and the debriefing is limited to the bidder’s proposal. Competitors’ bids cannot be discussed. Contracts may be amended by written consent of both parties, providing the basic scope of the contract is not changed. The PPA contains no specific provisions on approvals for contract amendments for goods or consultancy services. Works variation orders may be permitted within the contract conditions. Variations within the contract contingency (usually 10%) may be authorised by the head of department/project director. Where the contingency is exceeded or there is no contingency, the variation must be approved by a higher authority. Extensions of time may be granted in exceptional circumstances. Contracts must state that dispute settlement will be in accordance with the Arbitration Act of Sri Lanka, except where funding agencies require alternative provisions. For contracts in the construction sector ICTAD are tasked with providing Facilitating / Mediating / Adjudicating services for resolving disputes. ICTAD maintain a database of arbitration specialists and appoint these specialists to resolve disputes. Funding agencies may substitute the Rules of Arbitration of the International Chamber of Commerce or United Nations Commission on International Trade Law or any other acceptable rules recommended.


The PG and the PM contain no proposals for record keeping, although specific records (such as the MPP and evaluation report) are referred to and these records must be kept for a period of at least 5 years from completion of procurement proceedings.

There are no specific instructions on communications with the specific exception of such items as clarification requests which must be in writing, but procurement transactions may be carried out through electronic communications where permitted by government and subject to requirements of security, access, preserving content and not otherwise contravening the PG.

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Many key communications must be sent to all bidders to ensure everyone is provided with the same information and assured of equal opportunities to obtain additional information. Pre-bid meeting minutes must be circulated to all bidders.



Bidders may submit a representation against the award decision. Where procurement is by the MPC, representations are to the Secretary of the PE. A joint MPC/TEC meeting considers and reports to the Secretary within 14 days. The Secretary must act in accordance with the recommendations of the MPC/TEC.

Where procurement is by the CAPC, representations are to the Procurement Appeal Board at the Presidential Secretariat. The Appeal Board is required to undertake an investigation and provide a report to cabinet either endorsing the PC decision or providing an independent award recommendation. No timescales are set for the Appeal Board to produce their report.

Investigation and decision on a complaint is entirely within the remit of the PE for lower value procurement. For higher value procurement, the Procurement Appeal Board reports to cabinet, who appointed the CAPC.


The PG states that officials involved in procurement must not abuse their powers and any official who derives benefits for oneself or one’s close family or business associates, would be deemed to be engaged in corrupt practices. Officials are required to declare that they do not have a conflict of interest when undertaking a procurement action such as evaluating a tender. If a conflict occurs officials must remove themselves from the process. Additionally, officials must not accept gifts and suppliers/contractors offering inducements will be disqualified.

The PG do not contain a Code of Ethics and there is no overt mechanism for dealing with corruption in the procurement process.

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8. Recommendations The following sections make recommendations for the strengthening of the national procurement system of Sri Lanka. Currently the GOSL is in discussions with the WB about ways to reform the public procurement system. However, we have been unable to ascertain what is being considered and which government body would be responsible for implementing reform.

8.1 Legal Framework

The most significant reform we would suggest is the reinstatement of the DOPF as an independent body tasked with undertaking its roles as detailed in the Procurement Guidelines. This could be coordinated with the introduction of a proper legal framework for public procurement. The later would be a major undertaking and require buy-in from government. The original mandate for an independent NPA included the following:

To streamline the government procurement system and standardize the same to be of equal application to all government institutions.

To ensure better transparency and good governance in relation to government procurement awards.

To ensure that all parties who are eligible and desirous of participating in public bidding are afforded an equal opportunity.

To ensure that when procuring the government will get best value for money in terms of price, quality and timely delivery.

To ensure that the government procurement system is made efficient and simplified in order to promote development needs of the country.

To put in place a monitoring system relating to selection of successful bidders and award of government tenders.

The key functions of the NPA as set out in the PM were to:

Develop, implement and review policies in procurement of goods, works and services

Advise the Ministries and Tender Boards on procurement Activities

Standardizing of goods and equipment

Simplification of Review and Approval Process

Review Procurement Procedures & Procurement Plans of all Government Institutions

Monitor quality and progress on procurement projects

Formulate accreditation system on selection of members for TECs and Tender Boards

Appoint Tender Board and Technical Evaluation Committee members for procurements of higher values - Cabinet Appointed Tender Boards, Cabinet Appointed Negotiating Committees and Project Committees

Introduction of code of conduct and ethics for Procurement Procedures

Introduction of performance and technical auditing

Capacity Building in the field of Procurement Management


One of the weaknesses of the NPA was the lack of a mandate for regulating and monitoring public procurement and building procurement capacity within PEs. This is still the case with the role of the DOPF. Should the DOPF be reinstated in a role similar to that of the original NPA then the organisation will require restructuring and additional staff recruited. A capacity building programme would be required to enhance the procurement skills of existing staff and ensuring new staff have the skills required to take forward the enhanced role of the organisation. A key

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component of this will be the provision of tools and training for monitoring and auditing are one priority.


Develop capacity among all government procurement staff to ensure they have good procurement skills and are able to comply with the regulatory framework. Capacity development initiatives should differentiate between different procurement roles, including practitioners in procurement units, those responsible for approvals, including the chief of the PE and staff with technical involvement, such as the preparation of specifications and terms of reference and participation in evaluation committees.


The current complaints mechanism leaves the investigation and decision on a complaint entirely within the remit of the PE with the exception of procurement undertaken by the CAPC. In addition, though complaints from bidders must be received within a set number of days there is no restriction upon when the Procurement Entity must respond. It is important that an independent complaints mechanism is instituted that is independent of the PE is introduced. The mechanism could include the DOPF as an independent body whose staff would be procurement professionals with procurement expertise. It is important that procurement professionals are involved in the appeal process to ensure that internationally accepted procurement norms apply to the process.

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artic

ular

are

a, c

ompl

ete

any

know

n de

tails

of a

ctua

l pra

ctic

e.

Und

er C

omm

ents

and

Rec

omm

enda

tions

, ind

icat

e ar

eas

whi

ch re

quire

stre

ngth

enin

g or

whe

re ru

les

or p

ract

ices

may

impa

ct o

n tim

ely

disb

urse

men

t of J

ICA

loan

s.

This

que

stio

nnai

re c

over

s th

e ke

y el

emen

ts o

f a p

rocu

rem

ent s

yste

m, b

ut is

not

exh

aust

ive.

Whe

re p

artic

ular

feat

ures

or p

ract

ices

of a

sys

tem

are

co

nsid

ered

uns

atis

fact

ory

or li

kely

to im

pact

on

impl

emen

tatio

n of

JIC

A lo

ans,

iden

tify

thes

e un

der “

Oth

er In

form

atio

n” o

r in

the

rele

vant

sec

tion

of th

e qu

estio

nnai

re.

N

o Q

uest

ion

Det

ails

of P

rocu

rem

ent S

yste

m

Com

men

ts a

nd R

ecom

men

datio

ns

A

Lega

l Fra

mew

ork

A1

Whi

ch d

ocum

ents

mak

e up

the

lega

l fra

mew

ork?

i.e.

is th

ere

a pr

ocur

emen

t law

/ re

gula

tions

/ gu

idel

ines

/ m

anua

l?

No

proc

urem

ent l

egis

latio

n or

regu

latio

ns.

Pro

cure

men

t rul

es a

re s

et th

roug

h se

vera

l se

ts o

f gui

delin

es:

P

rocu

rem

ent G

uide

lines

(PG

), G

oods

&

Man

y co

untri

es p

refe

r to

issu

e at

leas

t the

m

ost i

mpo

rtant

pro

cure

men

t rul

es th

roug

h a

law

or r

egul

atio

ns to

ens

ure

they

are

lega

lly

enfo

rcea

ble

and

cann

ot e

asily

be

chan

ged.

－192－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

19

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

W

orks

, 200

6 (T

hese

als

o ap

ply

to n

on-

cons

ulta

ncy

serv

ices

.)

Gui

delin

es, S

elec

tion

and

Em

ploy

men

t of

Con

sulta

nts

(CG

), 20

07

G

uide

lines

on

Priv

ate

Sec

tor

Infra

stru

ctur

e P

roje

cts

G

uide

lines

for P

rocu

rem

ent o

f P

harm

aceu

tical

& M

edic

al D

evic

es, 2

006

Gui

delin

es w

ere

issu

ed b

y th

e N

atio

nal

Pro

cure

men

t Age

ncy

(NP

A) w

ith c

abin

et

appr

oval

. Th

e tw

o se

ts o

f gui

delin

es a

re s

uppl

emen

ted

by m

anua

ls:

P

rocu

rem

ent M

anua

l, 20

06, w

hich

has

up

date

d by

sup

plem

ent n

umer

ous

times

–

ther

e ar

e 24

sup

plem

ents

up

to M

arch

20

12, t

he fi

rst 8

of w

hich

hav

e be

en

inco

rpor

ated

into

the

issu

ed m

anua

l

Con

sulti

ng S

ervi

ces

Man

ual,

2007

G

uide

lines

and

Man

uals

are

sup

plem

ente

d by

num

erou

s ci

rcul

ars,

orig

inal

ly is

sued

by

NP

A, b

ut n

ow b

y th

e D

epar

tmen

t of P

ublic

Fi

nanc

e (D

OP

F).

Doc

umen

ts is

sued

in E

nglis

h, S

inha

la a

nd

Tam

il.

Gui

delin

es w

ere

prep

ared

in c

oope

ratio

n w

ith fu

ndin

g ag

enci

es, i

nclu

ding

the

Wor

ld

Ban

k, A

DB

and

JB

IC, a

nd w

ere

harm

onis

ed

with

thei

r gui

delin

es to

the

exte

nt p

ossi

ble.

Th

e m

ultip

le s

uppl

emen

ts to

the

proc

urem

ent m

anua

l mak

e it

diffi

cult

to

follo

w. T

he g

uide

lines

/man

uals

als

o re

fer t

o th

e no

w c

lose

d N

PA

, who

se fu

nctio

ns h

ave

been

ass

umed

by

the

DO

PF.

Th

ere

are

also

a s

igni

fican

t num

ber o

f ci

rcul

ars

on p

rocu

rem

ent i

ssue

s.

It is

reco

mm

ende

d th

at D

OP

F re

-issu

e up

date

d an

d co

nsol

idat

ed v

ersi

ons

of a

ll gu

idel

ines

/man

uals

, inc

orpo

ratin

g th

e co

nten

ts o

f circ

ular

s w

here

rele

vant

. A

dditi

onal

repe

aled

gui

delin

es a

nd c

ircul

ars

are

also

ava

ilabl

e on

the

NP

A w

ebsi

te. T

his

coul

d ca

use

conf

usio

n an

d w

e re

com

men

d th

at th

ey b

e re

mov

ed.

PG

and

CG

con

tain

sim

ilar p

rovi

sion

s on

so

me

issu

es, b

ut o

ften

with

sm

all d

iffer

ence

s th

at c

anno

t be

expl

aine

d by

the

diffe

renc

es

betw

een

cons

ulta

ncy

and

othe

r pro

cure

men

t (e

.g. P

G p

rovi

sion

s on

dat

abas

e of

def

aulti

ng

cont

ract

ors/

supp

liers

has

mor

e de

tail

than

C

G p

rovi

sion

s on

dat

abas

e of

def

aulti

ng

cons

ulta

nts)

. Thi

s re

sults

in d

uplic

atio

n be

twee

n th

e tw

o se

ts o

f gui

delin

es a

nd

pote

ntia

l con

fusi

on o

ver t

wo

diffe

ring

proc

esse

s w

here

no

diffe

renc

es a

re

requ

ired.

A

2 A

re th

ere

stan

dard

bid

ding

doc

umen

ts

and/

or a

ny o

ther

sta

ndar

d fo

rms

or

tem

plat

es?

SB

Ds

for g

oods

/wor

ks a

nd s

tand

ard

RFP

s fo

r con

sulta

ncy

serv

ices

hav

e be

en is

sued

by

NP

A. T

hese

incl

ude:

The

set o

f SB

Ds

appe

ars

to b

e lim

ited

e.g.

no

doc

umen

ts fo

r spe

cial

ised

goo

ds o

r for

pr

ocur

emen

t of g

oods

und

er IC

B.

－193－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

20

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

If

so, a

re th

ey b

ased

on

a pa

rticu

lar

tem

plat

e, s

uch

as d

onor

doc

umen

ts?

P

rocu

rem

ent o

f goo

ds –

nat

iona

l sh

oppi

ng

P

rocu

rem

ent o

f gen

eral

goo

ds –

NC

B

P

rocu

rem

ent o

f non

-con

sulta

ncy

serv

ices

(tria

l edi

tion

of 2

007)

RFP

for c

onsu

ltanc

y or

gani

satio

ns

(QC

BS

, QB

S, F

BS

, LC

S)

No

othe

r SB

Ds

are

avai

labl

e on

the

NP

A/D

OP

F w

ebsi

te.

Wor

ks S

BD

s ha

ve b

een

prep

ared

in

conj

unct

ion

with

the

Inst

itute

for C

onst

ruct

ion

Trai

ning

and

Dev

elop

men

t (IC

TAD

). Th

ese

SB

Ds

are

sold

by

ICTA

D a

nd a

re n

ot

avai

labl

e fro

m N

PA

. D

onor

SB

Ds

may

be

used

whe

re

proc

urem

ent i

s do

nor f

unde

d.

Alte

rnat

ivel

y, th

e w

ebsi

te d

oesn

’t co

ntai

n al

l is

sued

doc

umen

ts.

EA

s se

em to

hav

e to

pay

to g

et c

opie

s of

the

wor

ks S

BD

s, w

hich

may

dis

cour

age

thei

r us

e.

B

Scop

e of

App

licat

ion

B1

Who

doe

s th

e le

gal f

ram

ewor

k ap

ply

to?

i.e.

does

it c

over

par

asta

tals

and

sta

te o

wne

d en

terp

rises

or o

nly

gove

rnm

ent m

inis

tries

?

App

lies

to p

rocu

ring

entit

ies

(PE

) car

ryin

g ou

t pro

cure

men

t par

tly o

r who

lly fu

nded

by

the

Gov

ernm

ent o

f Sri

Lank

a (G

OS

L) o

r a

fore

ign

fund

ing

agen

cy.

PE

s in

clud

e:

m

inis

tries

, dep

artm

ents

, sta

tuto

ry

auth

oriti

es

pr

ovin

cial

cou

ncils

and

loca

l aut

horit

ies

go

vern

men

t cor

pora

tions

and

go

vern

men

t ow

ned

com

pani

es

an

y bo

dy w

holly

or p

artly

ow

ned

by

GO

SL

or w

here

the

GO

SL

has

effe

ctiv

e co

ntro

l of t

he b

ody

(PG

/CG

1.1

.1 a

nd d

efin

ition

s)

Wid

e ap

plic

atio

n of

the

PG

/CG

.

B2

Doe

s th

e le

gal f

ram

ewor

k ap

ply

to a

ll pr

ocur

emen

t or a

re th

ere

exce

ptio

ns?

App

lies

to a

ll pr

ocur

emen

t.

PG

cha

pter

9 g

ives

alte

rnat

ive

rule

s fo

r W

ide

appl

icat

ion

of th

e P

G/C

G.

－194－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

21

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

S

peci

al P

rocu

rem

ents

i.e.

com

mod

ities

, sp

are

parts

, veh

icle

and

equ

ipm

ent r

epai

rs,

publ

icat

ions

, fue

l, ph

arm

aceu

tical

s an

d m

edic

al e

quip

men

t and

info

rmat

ion

syst

ems.

Th

ese

are

varia

tions

to th

e ex

istin

g P

G,

rath

er th

an a

n ex

empt

ion.

C

G a

pply

to a

ll ty

pes

of c

onsu

ltant

s,

incl

udin

g or

gani

satio

ns a

nd in

divi

dual

s. N

o ty

pes

of c

onsu

lting

ser

vice

s ex

clud

ed. (

CG

1.

3.2-

1.3.

3)

PG

2.7

.2 e

stab

lishe

s a

Sta

ndin

g C

abin

et

App

oint

ed P

rocu

rem

ent C

omm

ittee

(S

CA

PC

) for

spe

cial

circ

umst

ance

s re

quiri

ng

devi

atio

n fro

m g

ener

al p

rocu

rem

ent

proc

edur

es, s

ugge

stin

g ex

cept

ions

are

pe

rmitt

ed.

B3

Wha

t pro

visi

on d

oes

the

lega

l fra

mew

ork

mak

e fo

r app

licat

ion

of a

ltern

ativ

e do

nor

rule

s?

PG

/CG

app

ly to

all

proc

urem

ent,

irres

pect

ive

of fu

ndin

g. H

owev

er, w

here

a fu

ndin

g ag

ency

man

date

s us

e of

its

guid

elin

es, t

hey

prev

ail o

ver t

he P

G/C

G to

the

exte

nt th

at

they

con

flict

. (P

G1.

3.3,

CG

1.3

.4)

JIC

A c

an re

quire

use

of i

ts g

uide

lines

whe

re

spec

ified

in lo

an a

gree

men

ts

C

Inst

itutio

nal F

ram

ewor

k

C

1 Is

pro

cure

men

t cen

tralis

ed o

r dec

entra

lised

? i.e

. is

ther

e an

y ce

ntra

l bod

y re

spon

sibl

e fo

r co

nduc

ting

or a

ppro

ving

pro

cure

men

t or

does

eac

h ag

ency

do

this

itse

lf?

Dec

entra

lised

. Sec

reta

ries

to li

ne m

inis

tries

ar

e re

spon

sibl

e fo

r pro

cure

men

t act

ions

, as

Chi

ef A

ccou

ntin

g O

ffice

rs (C

AO

s)(P

G/C

G

2.2)

CG

als

o gi

ve th

is re

spon

sibi

lity

to C

hief

S

ecre

tarie

s of

pro

vinc

ial c

ounc

ils.

All

proc

urem

ent a

ctiv

ity a

nd d

ecis

ions

de

cent

ralis

ed, w

ith th

e ex

cept

ion

that

co

mm

ittee

s fo

r hig

her v

alue

pro

cure

men

t are

ap

poin

ted

by N

PA

.

The

disc

repa

ncy

betw

een

the

PG

and

CG

sh

ould

be

revi

ewed

.

C2

Is th

ere

a re

gula

tory

bod

y fo

r pro

cure

men

t?

If so

, wha

t are

its

func

tions

? N

atio

nal P

rocu

rem

ent A

genc

y (N

PA

) es

tabl

ishe

d un

der p

resi

dent

ial d

irect

ive

in

－195－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

22

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

20

04, b

ut c

lose

d in

200

8. N

PA

func

tions

tra

nsfe

rred

to th

e D

epar

tmen

t of P

ublic

Fi

nanc

e (D

OP

F), M

inis

try o

f Fin

ance

and

P

lann

ing.

All

refe

renc

es in

gui

delin

es e

tc to

N

PA

are

now

to b

e re

ad a

s D

OP

F.

NP

A (n

ow D

OP

F) fu

nctio

ns in

clud

e th

e

obje

ctiv

es.

To s

tream

line

the

gove

rnm

ent

proc

urem

ent

syst

em a

nd s

tand

ardi

ze t

he s

ame

to b

e of

equ

al a

pplic

atio

n to

all

gove

rnm

ent

inst

itutio

ns.

To

ensu

re

bette

r tra

nspa

renc

y an

d go

od

gove

rnan

ce

in

rela

tion

to

gove

rnm

ent

proc

urem

ent a

war

ds.

To e

nsur

e th

at a

ll pa

rties

who

are

elig

ible

an

d de

siro

us o

f pa

rtici

patin

g in

pub

lic

bidd

ing

are

affo

rded

an

eq

ual

oppo

rtuni

ty.

To

ensu

re

that

w

hen

proc

urin

g th

e go

vern

men

t will

get b

est v

alue

for m

oney

in

te

rms

of

pric

e,

qual

ity

and

timel

y de

liver

y.

To e

nsur

e th

at th

e go

vern

men

t pro

cure

men

t sy

stem

is m

ade

effic

ient

and

sim

plifi

ed in

or

der

to p

rom

ote

deve

lopm

ent

need

s of

th

e co

untry

. To

put

in p

lace

a m

onito

ring

syst

em r

elat

ing

to s

elec

tion

of s

ucce

ssfu

l bi

dder

s an

d aw

ard

of g

over

nmen

t ten

ders

. Th

e ke

y fu

nctio

ns o

f th

e N

PA a

s se

t ou

t ar

e:

Dev

elop

, im

plem

ent

and

revi

ew p

olic

ies

in

proc

urem

ent

of

good

s,

wor

ks

and

serv

ices

A

dvis

e th

e M

inis

tries

and

Ten

der

Boa

rds

on

－196－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

23

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

pr

ocur

emen

t Act

iviti

es

Sta

ndar

dizi

ng o

f goo

ds a

nd e

quip

men

t S

impl

ifica

tion

of

Rev

iew

an

d A

ppro

val

Pro

cess

R

evie

w

Pro

cure

men

t P

roce

dure

s &

P

rocu

rem

ent

Pla

ns o

f al

l G

over

nmen

t In

stitu

tions

M

onito

r qua

lity

and

prog

ress

on

proc

urem

ent

proj

ects

Fo

rmul

ate

accr

edita

tion

syst

em o

n se

lect

ion

of

mem

bers

fo

r TE

Cs

and

Tend

er

Boa

rds

App

oint

Te

nder

B

oard

an

d Te

chni

cal

Eva

luat

ion

Com

mitt

ee

mem

bers

fo

r pr

ocur

emen

ts o

f hig

her

valu

es -

Cab

inet

A

ppoi

nted

Te

nder

B

oard

s,

Cab

inet

A

ppoi

nted

Neg

otia

ting

Com

mitt

ees

and

Pro

ject

Com

mitt

ees

Intro

duct

ion

of c

ode

of c

ondu

ct a

nd e

thic

s fo

r Pro

cure

men

t Pro

cedu

res

Intro

duct

ion

of p

erfo

rman

ce a

nd t

echn

ical

au

ditin

g C

apac

ity B

uild

ing

in th

e fie

ld o

f Pro

cure

men

t M

anag

emen

t

R

evis

ed

role

of

th

e N

PA

unde

r th

e M

inis

try

of F

inan

ce a

nd P

lann

ing

The

gove

rnm

ent o

ffici

ally

inst

ruct

ed th

e N

PA

in

Dec

embe

r 20

07 to

clo

se d

own

oper

atio

ns

and

hand

ove

r its

ass

ets,

liab

ilitie

s an

d st

aff

befo

re J

anua

ry 3

1, 2

008.

Sub

sequ

ently

the

N

PA

w

as

subs

umed

in

to

the

Min

istry

of

P

ublic

Fin

ance

and

Pla

nnin

g, D

epar

tmen

t of

Pub

lic F

inan

ce (D

OP

F). C

urre

ntly

the

NP

A is

on

ly re

spon

sibl

e fo

r:

The

curre

nt re

mit

of th

e N

PA

is s

ever

ely

limite

d an

d re

flect

s th

e pr

iorit

y ap

plie

d by

the

curr

ent g

over

nmen

t

－197－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

24

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

Fo

rmul

atin

g an

d ef

fect

ing

amen

dmen

ts t

o th

e P

Gs

Mai

ntai

ning

an

d up

datin

g a

data

base

of

qu

alifi

ed t

echn

ical

spe

cial

ists

who

are

qu

alifi

ed

to

be

mem

bers

of

TE

Cs.

In

divi

dual

s sh

ould

be

limite

d to

sitt

ing

as

mem

bers

of t

hree

TE

Cs

conc

urre

ntly

S

elec

ting

qual

ified

tech

nica

l spe

cial

ists

to s

it on

TE

Cs

C3

Who

is re

spon

sibl

e fo

r mon

itorin

g or

aud

iting

pr

ocur

emen

t?

Per

form

ance

of P

Cs,

TE

Cs

and

CP

Cs

mon

itore

d by

NP

A, w

ho m

ay a

dvis

e co

rrec

tive

mea

sure

s or

repl

ace

com

mitt

ee

mem

ber.

The

audi

t fun

ctio

n is

a p

art o

f the

MoP

FP

and

DO

PF.

In re

ality

NP

A d

oes

not h

ave

an

audi

t fun

ctio

n un

der i

ts c

urre

nt re

mit

C4

Who

is re

spon

sibl

e fo

r pro

cure

men

t with

in

each

age

ncy?

i.e.

is th

ere

a pr

ocur

emen

t uni

t, de

sign

ated

pro

cure

men

t sta

ff w

ithin

de

partm

ents

or a

ny fo

rm o

f com

mitt

ee?

Gui

delin

es re

fer t

o pr

ocur

emen

t spe

cial

ists

, bu

t the

ir ro

le is

not

def

ined

. PE

resp

onsi

bilit

ies

are

assi

gned

to th

e of

ficer

in

cha

rge,

suc

h as

a h

ead

of d

epar

tmen

t or

proj

ect d

irect

or, t

o w

ork

with

the

assi

stan

ce

of p

rocu

rem

ent s

peci

alis

ts. T

hese

PE

re

spon

sibi

litie

s in

clud

e co

mm

unic

atio

ns,

prep

arin

g an

d is

suin

g in

vita

tion

docu

men

ts,

prep

arat

ion

of d

ata

prio

r to

the

eval

uatio

n an

d su

ppor

ting

com

mitt

ees

incl

udin

g th

roug

h is

suin

g m

inut

es o

f mee

tings

. (P

G/C

G 2

.3).

Th

ere

are

two

key

com

mitt

ees,

who

are

jo

intly

resp

onsi

ble

for t

he p

rocu

rem

ent

proc

ess

for g

oods

/wor

ks:

Pr

ocur

emen

t Com

mitt

ees

(PC

) (P

G

2.5)

whi

ch a

re re

spon

sibl

e fo

r ens

urin

g fu

nds

avai

labi

lity,

agr

eein

g th

e pr

ocur

emen

t tim

e sc

hedu

le (P

TS),

dete

rmin

ing

arra

ngem

ents

for

adve

rtisi

ng, s

ale

of d

ocum

ents

, rec

eipt

Gui

delin

es s

eem

to le

ave

flexi

bilit

y to

PE

s to

us

e pr

ocur

emen

t spe

cial

ists

as

they

con

side

r ap

prop

riate

. C

abin

et m

embe

rs a

re in

volv

ed in

the

appo

intm

ent o

f var

ious

PC

s, w

hich

po

tent

ially

allo

ws

for p

oliti

cal i

nter

fere

nce.

C

omm

ittee

arra

ngem

ents

app

ear c

ompl

ex,

with

num

erou

s pe

ople

/bod

ies

invo

lved

in

each

pro

cure

men

t. Th

is c

ould

resu

lt in

de

lays

and

unc

lear

acc

ount

abilit

y fo

r de

cisi

ons.

The

pay

men

t of a

llow

ance

s to

co

mm

ittee

mem

bers

add

s to

the

cost

of

proc

urem

ent.

－198－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

25

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

an

d op

enin

g, a

gree

ing

the

type

of

docu

men

ts, r

evie

win

g ev

alua

tion

repo

rts

and

reco

mm

endi

ng/d

ecid

ing

awar

d.

P

Cs

can

serv

e fo

r ove

rall

proj

ects

or

aggr

egat

ed re

quire

men

ts.

Te

chni

cal E

valu

atio

n C

omm

ittee

s (T

EC

) (P

G 2

.6) w

hich

are

resp

onsi

ble

for

reco

mm

endi

ng th

e P

TS,

revi

ewin

g/ap

prov

ing

spec

ifica

tions

, in

vita

tion

docu

men

ts a

nd a

dden

da,

parti

cipa

ting

in p

re-b

id m

eetin

gs,

agre

eing

bid

ope

ning

pro

cedu

res,

pa

rtici

patin

g in

neg

otia

tions

if d

irect

ed b

y th

e P

C, r

evie

win

g dr

aft c

ontra

cts.

Fu

nctio

n of

con

duct

ing

eval

uatio

n no

t di

rect

ly li

sted

but

impl

ied

by o

ther

par

ts

of P

G.

TE

Cs

may

diff

er fo

r eac

h pr

ocur

emen

t act

ivity

. PC

s va

ry a

ccor

ding

to th

e pr

ocur

emen

t, w

ith

com

posi

tion

stat

ed in

the

man

ual.

They

are

ap

poin

ted

by th

e S

ecre

tary

, unl

ess

indi

cate

d ot

herw

ise

belo

w: (

PG

2.7

)

Min

istry

Pro

cure

men

t Com

mitt

ee (M

PC

)

Dep

artm

ent P

rocu

rem

ent C

omm

ittee

(D

PC

)

Pro

ject

Pro

cure

men

t Com

mitt

ee (P

PC

)

Reg

iona

l Pro

cure

men

t Com

mitt

ee (R

PC

) w

hich

may

act

und

er d

eleg

ated

aut

horit

y w

here

dep

artm

ents

hav

e a

larg

e nu

mbe

r of

regi

onal

offi

ces

C

abin

et A

ppoi

nted

Pro

cure

men

t C

omm

ittee

s (C

AP

C) f

or h

igh

valu

e pr

ocur

emen

t, ap

poin

ted

by N

PA

－199－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

26

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

Sta

ndin

g C

abin

et A

ppoi

nted

P

rocu

rem

ent C

omm

ittee

s (S

CA

PC

) for

sp

ecia

l circ

umst

ance

s re

quiri

ng

devi

atio

n fro

m g

ener

al p

roce

dure

s,

appo

inte

d by

NP

A

TEC

s sh

ould

con

sist

of s

ubje

ct s

peci

alis

ts

and

at le

ast o

ne m

embe

r with

pro

cure

men

t kn

owle

dge.

The

y ar

e ap

poin

ted

by th

e N

PA

, S

ecre

tary

or h

ead

of d

epar

tmen

t dep

endi

ng

on w

heth

er p

rocu

rem

ent i

s m

anag

ed b

y a

CA

PC

, MP

C o

r PP

C/D

PC

/RP

C.

Mem

bers

may

not

ser

ve o

n bo

th P

Cs

and

TEC

s.

For c

onsu

ltanc

y se

rvic

es, t

here

is a

sin

gle

Con

sulta

nts

Proc

urem

ent C

omm

ittee

(C

PC

) (C

G 2

.4-2

.5) w

ith re

spon

sibi

lity

for t

he

entir

e se

lect

ion

proc

ess

incl

udin

g en

surin

g fu

nds

avai

labi

lity,

agr

eein

g th

e P

TS,

deci

ding

the

sele

ctio

n m

etho

d an

d co

ntra

ct

type

, eva

luat

ing

and

appr

ovin

g th

e sh

ortli

st

and

RFP

incl

udin

g TO

R, i

ndiv

idua

l tec

hnic

al

scor

ing

and

prep

arin

g th

e te

chni

cal

eval

uatio

n re

port,

fina

ncia

l eva

luat

ion,

de

cidi

ng/re

com

men

ding

aw

ard,

revi

ewin

g th

e dr

aft c

ontra

ct.

CPC

s va

ry a

ccor

ding

to th

e pr

ocur

emen

t, w

ith c

ompo

sitio

n st

ated

in th

e m

anua

l. Th

ey

are

appo

inte

d by

the

CA

O, u

nles

s in

dica

ted

othe

rwis

e be

low

: (C

G 2

.6)

M

inis

try C

onsu

ltant

s P

rocu

rem

ent

Com

mitt

ee (C

PC

M)

D

epar

tmen

t Con

sulta

nts

Pro

cure

men

t C

omm

ittee

(CP

CD

)

Pro

ject

Con

sulta

nts

Pro

cure

men

t

－200－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

27

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

C

omm

ittee

(CP

CP

)

Cab

inet

App

oint

ed C

onsu

ltant

s P

rocu

rem

ent C

omm

ittee

s (C

PC

C) f

or

high

val

ue p

rocu

rem

ent,

appo

inte

d by

N

PA

C

5 A

re th

ere

any

requ

irem

ents

for q

ualif

icat

ions

or

regi

stra

tion

for p

rocu

rem

ent s

taff?

N

one

in g

uide

lines

C6

How

is p

rocu

rem

ent r

evie

wed

or a

ppro

ved

with

in e

ach

agen

cy?

i.e. i

s th

ere

any

com

mitt

ee o

r boa

rd w

hich

app

rove

s an

d ar

e th

ere

leve

ls o

f aut

horit

y fo

r app

rova

ls?

At

wha

t sta

ges

is p

rocu

rem

ent r

evie

wed

?

Goo

ds/w

orks

pro

cure

men

t act

iviti

es b

y th

e P

E a

re re

view

ed b

y bo

th T

EC

s an

d P

Cs

and

activ

ities

by

TEC

s ar

e re

view

ed b

y th

e P

Cs.

Th

e TE

C re

view

s sp

ecifi

catio

ns, i

nvita

tion

docu

men

ts a

nd d

raft

cont

ract

s.

The

PC

revi

ews

the

eval

uatio

n re

port

and,

de

pend

ing

on v

alue

, may

mak

e th

e aw

ard

deci

sion

or m

ake

a re

com

men

datio

n to

a

high

er a

utho

rity.

Lev

els

of a

utho

rity

for

awar

d ar

e is

sued

by

circ

ular

s.

Con

sulta

ncy

proc

urem

ent a

ctiv

ities

by

the

PE

are

revi

ewed

by

the

CP

C. T

he C

PC

’s

wor

k ap

pear

s to

be

revi

ewed

by

a hi

gher

au

thor

ity if

ove

r its

lim

its o

f aut

horit

y (s

et in

th

e m

anua

l or b

y ci

rcul

ars)

. A

war

d re

com

men

datio

ns b

y C

AP

Cs

are

requ

ired

to b

e su

bmitt

ed to

cab

inet

for

appr

oval

.

C7

Is re

spon

sibi

lity

for c

ontra

ct m

anag

emen

t w

ithin

eac

h ag

ency

spe

cifie

d?

PE

resp

onsi

ble

for c

ontra

ct a

dmin

istra

tion,

fo

r goo

ds/w

orks

with

a re

quire

men

t for

in

depe

nden

t qua

lity

chec

ks b

efor

e ac

cept

ance

. Cer

tific

atio

n of

re

ceip

t/com

plet

ion

by a

n E

ngin

eer/

Con

sulta

nt fo

r wor

ks o

r offi

cer i

n ch

arge

for

good

s/no

n-co

nsul

tanc

y se

rvic

es. (

PG

8.1

2)

PE

to m

ake

arra

ngem

ents

for s

uper

visi

on o

f

－201－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

28

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

co

nsul

tant

s, in

clud

ing

acce

ptan

ce o

f de

liver

able

s (C

G 9

.7).

C8

Who

per

form

s fin

anci

al m

anag

emen

t fu

nctio

ns (e

.g. c

omm

itmen

ts, p

aym

ents

etc

)?

Are

they

sep

arat

ed fr

om p

rocu

rem

ent?

Fina

ncia

l man

agem

ent n

ot c

over

ed b

y th

e P

M. H

owev

er, e

ach

entit

y ha

s a

finan

ce

func

tion

whi

ch p

roce

sses

fore

cast

s, b

udge

ts,

paym

ents

, etc

.

D

Reg

istr

atio

n an

d Pa

rtic

ipat

ion

D1

Are

ther

e an

y re

quire

men

ts fo

r sup

plie

r re

gist

ratio

n as

a re

quire

men

t of p

artic

ipat

ion

in p

rocu

rem

ent o

r as

a co

nditi

on o

f con

tract

aw

ard?

If s

o, g

ive

deta

ils

Reg

istra

tion

requ

ired

for p

artic

ipat

ion

in

shop

ping

pro

cedu

res

(PG

3.4

.3)

For w

orks

, dom

estic

con

tract

ors

mus

t hav

e a

valid

ICTA

D re

gist

ratio

n to

bid

, but

may

pu

rcha

se b

iddi

ng d

ocum

ents

with

out

regi

stra

tion

(PG

3.2

.2(d

)) P

G 5

.3.5

sta

tes

ICTA

D re

gist

ratio

n as

a p

ost q

ualif

icat

ion

crite

ria.

Mem

bers

hip

of th

e N

atio

nal C

onst

ruct

ion

Con

tract

ors

Ass

ocia

tion

of S

ri La

nka

cann

ot

be u

sed

as a

n el

igib

ility

crite

rion

(circ

ular

).

D2

Are

ther

e an

y re

stric

tions

on

parti

cipa

tion

or

orig

in o

f goo

ds o

r sta

ff ba

sed

on n

atio

nalit

y?

If so

, giv

e de

tails

Onl

y do

mes

tic c

ompa

nies

can

bid

und

er

Nat

iona

l Com

petit

ive

Bid

ding

(NC

B),

unle

ss

NC

B is

use

d fo

r a d

onor

fund

ed p

roje

ct.

Dom

estic

pre

fere

nces

app

ly to

Inte

rnat

iona

l C

ompe

titiv

e B

iddi

ng (I

CB

) but

bot

h fo

reig

n an

d do

mes

tic b

idde

rs m

ay p

artic

ipat

e.

Fore

ign

and

dom

estic

bid

ders

to b

e tre

ated

eq

ually

und

er IC

B, e

xcep

t in

rega

rd to

IC

TAD

regi

stra

tion

and

pref

eren

ce (P

G

5.3.

8)

Pre

fere

nce

will

be 1

0% fo

r wor

ks a

nd 2

0%

for g

oods

if fu

nded

by

GO

SL.

Pre

fere

nces

of

7.5%

and

15%

app

ly to

con

tract

s fu

nded

by

the

WB

and

AD

B.

As

NC

B is

the

defa

ult m

etho

d, re

stric

tions

ba

sed

on n

atio

nalit

y ar

e co

mm

on.

－202－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

29

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

N

atio

nal a

nd fo

reig

n co

nsul

tant

s to

be

treat

ed e

qual

ly, e

xcep

t whe

re p

refe

renc

e is

sp

ecifi

ed in

the

RFP

(CG

6.5

.6)

D3

Is th

ere

any

mec

hani

sm fo

r sus

pens

ion

of

non-

perfo

rmin

g su

pplie

rs a

nd/o

r tho

se g

uilty

of

mis

cond

uct?

If s

o, g

ive

deta

ils

NP

A m

aint

ains

a d

atab

ase

of d

efau

lting

co

ntra

ctor

s/su

pplie

rs/c

onsu

ltant

s fo

r hig

h va

lue

cont

ract

s (>

LK

R 1

,000

,000

for

cons

ulta

ncy,

> L

KR

5,0

00,0

00 fo

r oth

ers)

an

d fo

r bid

ders

def

aulti

ng o

n bi

d de

clar

atio

ns. D

efau

lting

con

tract

ors/

su

pplie

rs a

re d

ebar

red

from

futu

re c

ontra

ct

awar

ds. T

his

is to

be

issu

ed to

PE

s ev

ery

6 m

onth

s an

d pu

blis

hed

on N

PA

’s w

ebsi

te.

(PG

8.1

1/C

G 9

.6 &

6.5

.2)

PE

s m

ay m

aint

ain

data

base

s of

def

aulti

ng

cont

ract

ors/

supp

liers

for c

ontra

cts

< 5,

000,

000.

Thi

s is

mad

e av

aila

ble

to o

ther

P

Es

on re

ques

t.

PG

pro

vide

a p

roce

ss fo

r not

ifyin

g co

ntra

ctor

s/su

pplie

rs a

nd e

nabl

ing

them

to

expl

ain

any

defa

ult,

follo

wed

by

inve

stig

atio

n by

a P

E c

omm

ittee

and

revi

ew b

y N

PA

be

fore

list

ing

on th

e da

taba

se. N

o su

ch

proc

ess

is p

rovi

ded

in th

e C

G.

The

data

base

of d

efau

lting

con

tract

ors/

su

pplie

rs h

eld

by P

Es

coul

d be

abu

sed

as

ther

e is

no

inde

pend

ent r

evie

w.

A p

age

for t

his

list w

as o

n th

e D

OP

F w

ebsi

te, b

ut n

o co

mpa

nies

wer

e lis

ted.

E Pr

ocur

emen

t Pla

nnin

g

E

1 A

re a

genc

ies

requ

ired

to p

repa

re

proc

urem

ent p

lans

as

part

of th

eir b

udge

ting

proc

ess?

PE

s to

pre

pare

a M

aste

r Pro

cure

men

t Pla

n (M

PP

) cov

erin

g 3

year

s fo

r goo

ds/w

orks

or 2

ye

ars

for c

onsu

ltanc

y, w

ith d

etai

l for

the

succ

eedi

ng y

ear.

MP

P to

be

upda

ted

at le

ast

ever

y 6

mon

ths

(PG

4.2

.1, C

G 5

.2)

It is

not

cle

ar w

heth

er/h

ow th

is is

inte

grat

ed

with

bud

getin

g pr

oces

ses.

E2

Are

age

ncie

s re

quire

d to

pre

pare

pr

ocur

emen

t pla

ns fo

r maj

or p

rocu

rem

ent

requ

irem

ents

?

A p

rocu

rem

ent t

ime

sche

dule

(PTS

) is

requ

ired

for i

ndiv

idua

l pro

cure

men

ts (P

G

4.2.

2, C

G 5

.2.2

) P

rocu

rem

ent n

ot to

com

men

ce w

ith a

firm

co

mm

itmen

t of f

unds

(PG

4.1

, CG

5.1

)

App

ears

to b

e re

quire

d fo

r all

proc

urem

ent

actio

ns.

E3

Wha

t are

the

key

cont

ents

of p

rocu

rem

ent

plan

s? E

.g. m

etho

ds, p

acka

ging

, typ

e of

co

ntra

cts,

tim

esca

les

etc

Form

at fo

r MP

P g

iven

in th

e m

anua

l.

Tota

l Cos

t Est

imat

e (T

CE

) als

o to

be

prep

ared

for g

oods

/wor

ks (P

G 4

.3) a

nd c

ost

estim

ate

and

budg

et fo

r con

sulta

ncy

－203－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

30

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

se

rvic

es (C

G 3

.4)

Slic

e an

d pa

ckag

e of

con

tract

s pe

rmitt

ed

(PG

4.4

) F

Proc

urem

ent M

etho

ds

F1

Is th

ere

a pr

efer

ence

for o

pen

com

petit

ion,

w

ith o

ther

met

hods

requ

iring

just

ifica

tion?

Y

es. N

CB

is th

e de

faul

t met

hod

for G

OS

L fu

nded

pro

ject

s an

d us

ed fo

r don

or fu

nded

pr

ojec

ts w

here

agr

eed.

IC

B is

use

d w

here

dom

estic

pro

vide

rs h

ave

limite

d ca

paci

ty o

r whe

re re

quire

d by

a

dono

r.

Con

sulta

nts

to b

e se

lect

ed fo

llow

ing

a co

mpe

titiv

e pr

oces

s w

here

ver p

ossi

ble

(CG

3.

2)

F2

Wha

t pro

cure

men

t met

hods

are

per

mitt

ed fo

r go

ods,

wor

ks a

nd n

on-c

onsu

ltanc

y se

rvic

es?

Pro

vide

det

ails

of t

hres

hold

s an

d co

nditi

ons

for u

se

PG

cha

pter

3 d

efin

es th

e fo

llow

ing

met

hods

:

ICB

– w

here

dom

estic

cap

acity

is li

mite

d or

whe

re re

quire

d by

a d

onor

NC

B –

def

ault

met

hod

whe

re G

OS

L fu

nded

Lim

ited/

Res

trict

ed In

tern

atio

nal/N

atio

nal

Com

petit

ive

Bid

ding

(LIB

/LN

B) –

whe

n on

ly a

few

sou

rces

are

ava

ilabl

e

Sho

ppin

g –

see

F5

D

irect

Con

tract

ing

– in

exc

eptio

nal

circ

umst

ance

s, s

ee F

6

Rep

eat O

rder

s –

subj

ect t

o lim

its, s

ee F

6

Forc

e A

ccou

nt –

for d

iffic

ult t

o de

fine

quan

titie

s, w

here

bid

s at

reas

onab

le

pric

es a

re u

nlik

ely

and

for e

mer

genc

ies.

Em

erge

ncy

Pro

cure

men

t – s

ee F

6

Com

mun

ity P

artic

ipat

ion

in P

rocu

rem

ent

– fo

r pro

ject

sus

tain

abilit

y or

to a

chie

ve

spec

ific

soci

al o

bjec

tives

with

con

ditio

ns

give

n in

man

ual.

Met

hods

are

clo

sely

mod

elle

d on

fund

ing

agen

cy g

uide

lines

. IC

B, L

IB, T

wo-

Sta

ge B

iddi

ng, T

wo

Env

elop

e S

yste

m, S

hopp

ing

and

Dire

ct C

ontra

ctin

g ar

e ve

ry s

imila

r to

met

hods

in J

ICA

gu

idel

ines

. Oth

er m

etho

ds, i

nclu

ding

NC

B,

are

not f

ound

in J

ICA

gui

delin

es.

－204－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

31

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

Two-

Sta

ge B

iddi

ng –

whe

re in

nova

tive

appr

oach

es a

re re

quire

d or

tech

nica

lly

uneq

ual b

ids

are

likel

y, re

quire

s ca

bine

t ap

prov

al

Tw

o E

nvel

ope

Sys

tem

– fo

r tur

nkey

, de

sign

and

bui

ld o

r sup

ply

and

inst

alla

tion

type

con

tract

s or

whe

re

alte

rnat

e ty

pes

of te

chni

cal p

ropo

sals

ar

e po

ssib

le.

F3

Wha

t pro

cure

men

t/ se

lect

ion

met

hods

are

pe

rmitt

ed fo

r con

sulta

ncy

serv

ices

? P

rovi

de

deta

ils o

f thr

esho

lds

and

cond

ition

s fo

r use

CG

3.7

def

ines

the

follo

win

g se

lect

ion

met

hods

:

Qua

lity

and

Cos

t Bas

ed S

elec

tion

(QC

BS

) – th

e de

faul

t met

hod

Q

ualit

y B

ased

Sel

ectio

n (Q

BS

) – fo

r co

mpl

ex o

r hig

hly

spec

ialis

ed

assi

gnm

ents

, tho

se w

ith a

hig

h do

wns

tream

impa

ct w

here

the

best

ex

perts

are

nee

ded

or w

here

pro

posa

ls

will

not b

e co

mpa

rabl

e

Sel

ectio

n un

der a

Fix

ed B

udge

t (FB

S) –

w

here

TO

R a

re p

reci

sely

def

ined

, inp

uts

can

be a

ccur

atel

y as

sess

ed a

nd th

e bu

dget

is fi

xed

Le

ast C

ost S

elec

tion

(LC

S) –

for

stan

dard

or r

outin

e as

sign

men

ts w

here

w

ell e

stab

lishe

d pr

actic

es e

xist

Sel

ectio

n B

ased

on

Con

sulta

nt’s

Q

ualif

icat

ions

(CQ

S) –

whe

n al

low

ed

unde

r don

or p

roje

cts

or p

repa

ratio

n an

d ev

alua

tion

of fu

ll co

mpe

titiv

e pr

opos

als

is

not j

ustif

ied

eith

er fo

r ass

ignm

ents

up

to

LKR

3 m

illion

or f

or h

ighe

r val

ue

assi

gnm

ents

whe

re h

ighl

y sp

ecia

lised

ex

perti

se is

requ

ired

and

ther

e ar

e fe

w

Sel

ectio

n m

etho

ds a

re v

ery

clos

ely

mod

elle

d on

fund

ing

agen

cy g

uide

lines

.

－205－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

32

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

qu

alifi

ed c

onsu

ltant

s.

S

ingl

e S

ourc

e S

elec

tion

(SS

S) –

in

exce

ptio

nal c

ases

, see

F6

Sel

ectio

n of

indi

vidu

al c

onsu

ltant

s is

als

o pe

rmitt

ed (C

G C

hapt

er 4

) Th

ere

are

also

rule

s on

sel

ectio

n of

pa

rticu

lar t

ypes

of c

onsu

ltant

s i.e

. un

iver

sitie

s an

d R

&D

cen

tres

and

gove

rnm

ent i

nstit

utes

(CG

3.1

4)

F4

Is th

e sp

littin

g of

pro

cure

men

t req

uire

men

ts

to a

void

thre

shol

ds p

rohi

bite

d?

Not

cle

arly

pro

hibi

ted

in P

G, b

ut th

ere

are

limits

on

repe

at o

rder

s w

ith th

e sa

me

supp

lier.

F5

Is a

sim

plifi

ed m

etho

d av

aila

ble

for l

ow v

alue

pr

ocur

emen

t, w

ith a

cle

ar th

resh

old?

Y

es, s

hopp

ing

for s

tand

ard

and

low

val

ue

purc

hase

s up

to a

thre

shol

d of

less

than

Rs

3 m

illion

F6

Is s

ingl

e so

urce

pro

cure

men

t lim

ited

to

spec

ified

, jus

tifie

d ci

rcum

stan

ces?

D

irect

con

tract

ing

limite

d to

exc

eptio

nal

circ

umst

ance

s (P

G 3

.5):

w

here

pric

es a

re fi

xed

by le

gisl

atio

n

whe

re s

tand

ardi

satio

n ju

stifi

es a

dditi

onal

pu

rcha

ses

of th

e sa

me

type

, sub

ject

to

limits

prop

rieta

ry it

ems

ite

ms

are

requ

ired

from

a p

artic

ular

su

pplie

r for

gua

rant

ee p

urpo

ses.

D

irect

con

tract

ing

subj

ect t

o a

max

imum

va

lue

of le

ss th

an R

s 1

mill

ion.

C

ontro

ls p

lace

d ov

er re

peat

ord

ers,

incl

udin

g a

limit

of 5

0% o

n th

e or

igin

al c

ontra

ct v

alue

an

d a

6 m

onth

tim

e lim

it (P

G 3

.6)

Em

erge

ncy

proc

urem

ent p

erm

itted

in

exce

ptio

nal c

ircum

stan

ces

such

as

man

mad

e or

nat

ural

dis

aste

rs a

nd w

here

de

clar

ed a

n em

erge

ncy

by G

OS

L. A

ppro

val

－206－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

33

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

re

quire

d if

abov

e th

resh

olds

(PG

3.8

) D

irect

con

tract

ing

perm

itted

for c

omm

unity

ba

sed

parti

cipa

tion

(PG

3.9

.2)

SS

S li

mite

d to

exc

eptio

nal c

ases

(CG

3.

13.1

):

for c

ontin

uatio

n of

pre

viou

s w

ork

whe

re

the

orig

inal

ass

ignm

ent w

as

com

petit

ivel

y se

lect

ed

fo

r an

emer

genc

y op

erat

ion

fo

r sm

all a

ssig

nmen

ts u

p to

LK

R

100,

000

w

here

onl

y on

e or

gani

satio

n is

qua

lifie

d or

has

exc

eptio

nal e

xper

ienc

e fo

r the

as

sign

men

t S

SS

requ

ires

appr

oval

from

the

rele

vant

C

PC

and

fund

ing

agen

cy.

Sim

ilar c

ondi

tions

app

ly to

sol

e so

urce

se

lect

ion

of in

divi

dual

con

sulta

nts

(CG

4.5

) G

B

iddi

ng P

roce

ss fo

r Goo

ds, W

orks

and

N

on-C

onsu

ltanc

y Se

rvic

es

G1

Are

age

ncie

s re

quire

d to

adv

ertis

e pr

ocur

emen

t opp

ortu

nitie

s w

idel

y, w

heth

er

natio

nally

or i

nter

natio

nally

?

For N

CB

, not

ices

adv

ertis

ed in

at l

east

one

w

idel

y ci

rcul

ated

nat

iona

l new

spap

er, t

he

NP

A w

ebsi

te a

nd o

ther

rele

vant

web

site

s (P

G 3

.2.2

) Fo

r IC

B, n

otic

es a

dver

tised

in o

ne w

idel

y ci

rcul

ated

nat

iona

l new

spap

er, r

elev

ant

web

site

s, U

ND

B o

r dgM

arke

t and

sen

t to

emba

ssie

s an

d tra

de m

issi

ons

(PG

3.1

.4)

Som

e no

tices

wer

e di

spla

yed

on th

e D

OP

F w

ebsi

te, b

ut th

ese

wer

e lim

ited.

Oth

ers

may

be

on

the

EA

’s o

wn

web

site

G2

Is u

se o

f res

trict

ed b

iddi

ng li

mite

d to

sp

ecifi

ed, j

ustif

ied

circ

umst

ance

s?

Yes

, LIB

/LN

B p

erm

itted

onl

y w

here

ther

e ar

e fe

w s

ourc

es (P

G 3

.3).

Pro

cedu

res

to fo

llow

IC

B/N

CB

, exc

ept f

or a

dver

tisin

g an

d do

mes

tic p

refe

renc

e.

－207－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

34

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

G

3 Is

pre

-qua

lific

atio

n pe

rmitt

ed o

r req

uire

d fo

r la

rge

or c

ompl

ex c

ontra

cts?

R

equi

red

whe

re th

e co

st o

f pre

parin

g de

taile

d bi

ds c

ould

dis

cour

age

com

petit

ion,

su

ch a

s fo

r lar

ge o

r com

plex

wor

ks a

nd

cust

om-d

esig

ned

equi

pmen

t, in

dust

rial p

lant

an

d sp

ecia

lised

ser

vice

s. (P

G 3

.12)

G4

Are

age

ncie

s re

quire

d to

use

qua

lific

atio

n cr

iteria

rela

ted

to th

e co

ntra

ct a

nd to

dis

clos

e th

ese

to a

pplic

ants

?

Yes

(PG

3.1

2.1(

d) a

nd 3

.12.

2). C

riter

ia to

fo

cus

on:

ex

perie

nce

and

past

per

form

ance

reso

urce

s av

aila

ble

i.e. p

erso

nnel

, eq

uipm

ent a

nd c

onst

ruct

ion/

m

anuf

actu

ring

faci

litie

s

finan

cial

reso

urce

s

G5

Are

all

qual

ified

firm

s in

vite

d to

bid

? Y

es (P

G 3

.12.

1(e)

-(f))

G6

Are

obj

ectiv

e sp

ecifi

catio

ns o

r oth

er te

chni

cal

docu

men

ts re

quire

d to

cle

arly

des

crib

e th

e su

bjec

t of p

rocu

rem

ent?

Yes

(PG

5.6

). S

peci

ficat

ions

to b

e ge

neric

. W

here

bra

nd n

ames

nee

d to

be

used

, “or

eq

uiva

lent

” sho

uld

be a

dded

.

G7

Are

sta

ndar

ds re

quire

d to

be

used

, whe

ther

na

tiona

l or i

nter

natio

nal?

S

tand

ards

of t

he S

ri La

nka

Sta

ndar

d In

stitu

tion

to b

e us

ed to

the

max

imum

ext

ent

poss

ible

. Whe

re n

ot a

vaila

ble,

inte

rnat

iona

l st

anda

rds

to b

e us

ed.

PE

s to

use

NP

A/IC

TAD

spe

cific

atio

ns a

s fa

r as

pos

sibl

e fo

r goo

ds/w

orks

(PG

5.6

.4).

N

PA

has

issu

ed v

ario

us in

dica

tive

func

tiona

l sp

ecifi

catio

ns c

over

ing

vario

us c

omm

only

pu

rcha

sed

good

s –

avai

labl

e on

NP

A

web

site

. IC

TAD

spe

cific

atio

ns a

re li

sted

on

NP

A

web

site

and

ava

ilabl

e fo

r pur

chas

e fro

m

ICTA

D

ICTA

D s

peci

ficat

ions

are

wel

l kno

wn

to a

ll lo

cal b

idde

rs a

nd th

ere

is n

o re

quire

men

t to

regu

larly

pur

chas

e co

pies

. Has

no

affe

ct

upon

com

petit

ion

G8

Do

tem

plat

es fo

r bid

ding

doc

umen

ts:

cont

ain

clea

r ins

truct

ions

on

the

bidd

ing

proc

ess?

SB

Ds

to b

e us

ed w

ith m

inim

um c

hang

es.

Whe

re th

ere

is n

o re

leva

nt S

BD

, NP

A

conc

urre

nt re

quire

d fo

r an

alte

rnat

ive

(PG

－208－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

35

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

di

sclo

se th

e ev

alua

tion

crite

ria a

nd

met

hodo

logy

? co

ntai

n dr

aft c

ontra

cts

whi

ch a

re fa

ir an

d pr

ovid

e ad

equa

te p

rote

ctio

n fo

r the

ag

ency

?

5.3)

B

iddi

ng d

ocum

ents

to c

onta

in a

ll re

leva

nt

info

rmat

ion

for b

id p

repa

ratio

n (P

G 5

.2)

Man

ual g

ives

con

tent

s of

bid

ding

do

cum

ents

. SB

Ds

not y

et re

view

ed.

Bid

ding

doc

umen

t to

spec

ify fa

ctor

s to

be

cons

ider

ed in

bid

eva

luat

ion

and

how

the

low

est e

valu

ated

bid

will

be d

eter

min

ed (P

G

5.3.

19)

Dra

ft co

ntra

ct to

be

issu

ed w

ith b

iddi

ng

docu

men

t (P

G 5

.4).

PG

con

tain

con

side

rabl

e de

tail

on c

ontra

ct c

ondi

tions

. G

9 A

re fe

es fo

r bid

ding

doc

umen

ts li

mite

d to

co

sts

for c

opyi

ng a

nd d

espa

tch?

Fe

es fo

r bid

ding

doc

umen

ts n

ot to

be

fixed

so

hig

h as

to d

isco

urag

e bi

dder

s (P

G 6

.1.3

)

G10

A

re a

genc

ies

requ

ired

to g

ive

a cl

ear b

iddi

ng

dead

line,

kee

p bi

ds s

ecur

ely

and

reje

ct la

te

bids

?

Yes

, PG

6.3

G11

A

re m

inim

um b

iddi

ng p

erio

ds s

peci

fied?

Y

es, P

G 6

.2.2

:

42 d

ays

for I

CB

/LIB

21 d

ays

for N

CB

/LN

B (o

r 14

days

for

rest

ricte

d di

stric

t con

stru

ctio

n co

ntra

cts

7

days

for s

hopp

ing

Thes

e m

ay b

e re

duce

d fo

r em

erge

ncy

proc

urem

ent.

G12

A

re b

id s

ecur

ities

requ

ired?

If s

o, g

ive

deta

ils

of ru

les.

B

id s

ecur

ities

requ

ired

for I

CB

/ LIB

, NC

B

and

LNB

as

a bi

d de

clar

atio

n or

bid

gu

aran

tee/

cash

dep

osit

(PG

5.3

.11-

13)

Gua

rant

ees

to b

e fo

r a fi

xed

amou

nt, n

ot

perc

enta

ge. D

ecla

ratio

ns c

an le

ad to

be

liste

d as

a d

efau

lter b

y N

PA

if b

reac

hed.

To

be

calle

d w

here

a b

idde

r with

draw

s/

mod

ifies

his

bid

, doe

sn’t

agre

e ar

ithm

etic

－209－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

36

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

co

rrec

tions

, fai

ls to

sig

n a

cont

act o

r fai

ls to

pr

ovid

e pe

rform

ance

sec

urity

. G

13

Are

pub

lic b

id o

peni

ngs

requ

ired?

Y

es, P

G 6

.3.3

Th

is is

a P

C re

spon

sibi

lity,

but

may

be

dele

gate

d to

a b

id o

peni

ng c

omm

ittee

.

G14

Is

eva

luat

ion

base

d on

the

crite

ria in

the

bidd

ing

docu

men

t?

Yes

, PG

7.8

(b),

7.9.

1, 7

.9.1

0

G15

Is

aw

ard

to th

e lo

wes

t eva

luat

ed re

spon

sive

bi

d?

Yes

, eva

luat

ion

dete

rmin

es th

e lo

wes

t ev

alua

ted

subs

tant

ially

resp

onsi

ve b

id (P

G

7.7)

H

owev

er, w

here

the

low

est b

ids

cont

ain

unre

alis

tical

ly lo

w ra

tes,

and

the

expl

anat

ion

prov

ided

by

the

bidd

er is

not

sat

isfa

ctor

y, th

e bi

d m

ay b

e re

ject

ed. A

hig

her p

erfo

rman

ce

secu

rity

may

als

o be

requ

este

d. (P

G 7

.9.1

1)

Pro

visi

ons

on d

ebat

able

dev

iatio

ns (n

eith

er

min

or o

r maj

or) a

re c

onfu

sing

. It i

s no

t cle

ar

whe

ther

they

are

to b

e ac

cept

ed o

r rej

ecte

d.

G16

A

re n

egot

iatio

ns p

rohi

bite

d?

Neg

otia

tion

of ra

tes

perm

itted

with

a b

idde

r w

here

onl

y on

e bi

d is

rece

ived

and

pric

es

are

high

(PG

7.1

2.2)

N

egot

iatio

ns a

ssum

ed to

be

proh

ibite

d in

ot

her c

ircum

stan

ces,

but

this

is n

ot c

lear

ly

stat

ed.

H

Proc

urem

ent P

roce

ss fo

r Con

sulta

ncy

Serv

ices

H1

Are

TO

R re

quire

d w

hich

cle

arly

des

crib

e ob

ject

ives

, tas

ks a

nd o

utpu

ts o

f the

as

sign

men

t?

TOR

to d

escr

ibe

the

obje

ctiv

es, g

oals

and

sc

ope,

bac

kgro

und

info

rmat

ion,

any

trai

ning

re

quire

d an

d P

E/c

onsu

ltant

resp

onsi

bilit

ies.

(C

G 3

.3)

H2

Are

age

ncie

s re

quire

d to

adv

ertis

e pr

ocur

emen

t opp

ortu

nitie

s w

idel

y, w

heth

er

natio

nally

or i

nter

natio

nally

?

For c

ompl

ex c

onsu

ltanc

y as

sign

men

ts a

nd

thos

e ov

er L

KR

2 m

illion

, not

ices

invi

ting

expr

essi

ons

of in

tere

st (E

OIs

) mus

t be

adve

rtise

d in

nat

iona

l new

spap

ers.

Adv

erts

m

ust a

lso

be in

inte

rnat

iona

l med

ia w

here

This

diff

ers

from

JIC

A g

uide

lines

, whe

re

shor

tlist

s ar

e de

velo

ped

with

out a

dver

tisin

g to

requ

est E

OIs

.

－210－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

37

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

in

tern

atio

nal o

rgan

isat

ions

are

exp

ecte

d.

In o

ther

cas

es, t

he P

E m

ay c

hoos

e to

ad

verti

se o

r to

incl

ude

cons

ulta

nts

know

n fro

m p

revi

ous

wor

k, b

y ot

her P

Es

or b

y do

nor a

genc

ies.

(CG

3.5

) Fo

r ind

ivid

ual c

onsu

ltant

s, a

dver

tisin

g is

re

quire

d fo

r nat

iona

l exp

erts

for m

ore

than

1

year

and

inte

rnat

iona

l exp

erts

for m

ore

than

6

mon

ths.

H

3 Is

sho

rtlis

ting

base

d on

obj

ectiv

e ev

alua

tion

of E

OIs

or o

ther

app

ropr

iate

sou

rces

? Fi

rst c

onsi

dera

tion

to b

e gi

ven

to

orga

nisa

tions

that

exp

ress

inte

rest

and

hav

e th

e re

leva

nt q

ualif

icat

ions

. S

hortl

ists

may

be

up to

7 o

rgan

isat

ions

. Th

ey s

houl

d no

rmal

ly c

ompr

ise

the

sam

e ca

tego

ry o

f con

sulta

nts

i.e. n

ot m

ixin

g or

gani

satio

ns a

nd in

divi

dual

s or

priv

ate

firm

s w

ith N

GO

s an

d un

iver

sitie

s (C

G 3

.6)

H4

Do

tem

plat

es fo

r RFP

doc

umen

ts:

cont

ain

clea

r ins

truct

ions

on

the

bidd

ing

proc

ess?

di

sclo

se th

e ev

alua

tion

crite

ria, w

eigh

ting,

m

etho

dolo

gy a

nd a

ny m

inim

um th

resh

olds

? co

ntai

n dr

aft c

ontra

cts

whi

ch a

re fa

ir an

d pr

ovid

e ad

equa

te p

rote

ctio

n fo

r the

ag

ency

?

Yes

, RFP

doc

umen

ts to

con

tain

(CG

6.2

): le

tter o

f inv

itatio

n (L

OI)

inst

ruct

ions

to c

onsu

ltant

s an

d da

ta s

heet

st

anda

rd fo

rms

for t

echn

ical

and

fina

ncia

l pr

opos

als

term

s of

refe

renc

e st

anda

rd fo

rm o

f con

tract

P

Es

to u

se th

e st

anda

rd R

FP w

ith m

inim

um

chan

ges

to a

ddre

ss a

ssig

nmen

t spe

cific

is

sues

(CG

6.3

) R

FP to

spe

cific

eva

luat

ion

crite

ria a

nd

subc

riter

ia (C

G 6

.5.9

) D

raft

cont

ract

to b

e is

sued

with

RFP

(CG

6.

6). V

ario

us c

ontra

ct ty

pes

perm

itted

(CG

10

.1)

Fees

may

be

char

ged

for R

FP d

ocum

ents

,

Cha

rgin

g fo

r RFP

doc

umen

ts d

iffer

s fro

m

JIC

A g

uide

lines

, whe

re th

ey a

re is

sued

free

of

cha

rge.

How

ever

, pro

vide

d th

e fe

e is

lim

ited,

this

sho

uld

not b

e a

mat

ter f

or

conc

ern.

It is

not

cle

ar w

heth

er th

e sh

ortli

st

wou

ld b

e am

ende

d if

cons

ulta

nts

decl

ined

to

purc

hase

the

RFP

.

－211－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

38

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

pr

ovid

ed th

ey a

re n

ot s

o hi

gh a

s to

di

scou

rage

con

sulta

nts

(CG

7.1

.2).

H

5 A

re a

genc

ies

requ

ired

to g

ive

a cl

ear b

iddi

ng

dead

line,

kee

p pr

opos

als

secu

rely

and

reje

ct

late

pro

posa

ls?

Dea

dlin

e in

LO

I (C

G 6

.4)

Pro

posa

ls to

be

rece

ived

at o

nly

one

loca

tion

by re

gist

ered

pos

t or p

erso

nal d

eliv

ery

agai

nst r

ecei

pt to

an

auth

oris

ed o

ffice

r. P

ropo

sals

to b

e su

bmitt

ed s

eale

d. (C

G 7

.3)

Late

pro

posa

ls to

be

reje

cted

. (C

G 7

.3.2

) O

pene

d or

igin

al fi

nanc

ial p

ropo

sals

han

ded

to th

e C

PC

cha

irper

son

(CG

7.4

.5).

H6

Are

min

imum

bid

ding

per

iods

spe

cifie

d?

Yes

, CG

7.2

.2:

42

day

s fo

r QC

BS

, QB

S, F

BS

and

LC

S

(inte

rnat

iona

l)

28 d

ays

for C

QS

and

SS

S (i

nter

natio

nal)

and

QC

BS

, QB

S, F

BS

and

LC

S

(nat

iona

l)

21 d

ays

for C

QS

and

SS

S (n

atio

nal)

7

days

for i

ndiv

idua

l con

sulta

nts

H7

Are

pub

lic b

id o

peni

ngs

requ

ired

for t

echn

ical

an

d/or

fina

ncia

l pro

posa

ls, w

ith a

dequ

ate

notif

icat

ion

for f

inan

cial

ope

ning

s?

Ope

ning

of t

echn

ical

pro

posa

ls in

the

pres

ence

of c

onsu

ltant

s w

ho c

hoos

e to

at

tend

, exc

ept f

or C

QS

and

SS

S. (

CG

7.4

) C

onsu

ltant

s su

bmitt

ing

qual

ified

tech

nica

l pr

opos

als

invi

ted

to fi

nanc

ial o

peni

ng, w

ith 5

da

ys’ n

otic

e fo

r nat

iona

l sho

rtlis

ts a

nd 1

0 da

ys fo

r int

erna

tiona

l. N

ames

, sco

res

and

pric

es to

be

anno

unce

d. (C

G 7

.4.3

)

H8

Is te

chni

cal e

valu

atio

n ba

sed

on th

e cr

iteria

an

d w

eigh

tings

in th

e R

FP d

ocum

ent,

with

a

min

imum

qua

lity

thre

shol

d?

Eva

luat

ion

to b

e ca

rrie

d ou

t in

full

conf

orm

ity

with

the

RFP

(CG

8.7

& 8

.8.5

) C

G 8

.8.5

giv

es ra

nge

of w

eigh

ts fo

r eac

h cr

iteria

. C

G 8

.8.6

refe

rs to

min

imum

qua

lifyi

ng s

core

.

H9

Are

age

ncie

s re

quire

d to

kee

p fin

anci

al b

ids

Yes

, CG

7.4

－212－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

39

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

se

aled

unt

il th

e tim

e fo

r fin

anci

al o

peni

ng

and

eval

uatio

n?

H10

Is

fina

ncia

l eva

luat

ion

and

rank

ing

of

prop

osal

s ba

sed

on th

e m

etho

dolo

gy a

nd

wei

ghtin

gs in

the

RFP

?

Eva

luat

ion

to b

e ca

rrie

d ou

t in

full

conf

orm

ity

with

the

RFP

(CG

8.7

) C

GG

8.1

0-8.

11 g

ives

det

ails

of f

inan

cial

ev

alua

tion.

H11

Is

aw

ard

to th

e hi

ghes

t ran

ked

prop

osal

, ac

cord

ing

to th

e m

etho

dolo

gy s

peci

fied

in

the

RFP

?

For Q

CB

S, h

ighe

st ra

nked

con

sulta

nt in

vite

d fo

r neg

otia

tions

, CG

8.1

0.3.

Fur

ther

det

ails

fo

r oth

er s

elec

tion

met

hods

giv

en in

the

man

ual.

H12

A

re n

egot

iatio

ns li

mite

d to

the

first

rank

ed

cons

ulta

nt a

nd to

are

as o

ther

than

fee

rate

s?

All

nego

tiatio

ns li

mite

d to

the

first

rank

ed

cons

ulta

nt (C

G 8

.12)

Fe

e ra

tes

not n

egot

iate

d fo

r QC

BS

, FB

S a

nd

LCS

(CG

8.1

2.1)

Fe

e ra

tes

are

nego

tiate

d fo

r QB

S, C

QS

and

S

SS

(CG

8.1

2.2)

I C

ontr

act A

war

d an

d M

anag

emen

t

I1

Is

any

not

ifica

tion

to u

nsuc

cess

ful b

idde

rs

and

stan

dstil

l per

iod

requ

ired

prio

r to

awar

d?

Yes

, bid

ders

for g

oods

/wor

ks to

be

info

rmed

w

ithin

one

wee

k of

the

awar

d de

cisi

on a

nd

give

n tw

o w

eeks

to m

ake

repr

esen

tatio

n to

th

e S

ecre

tary

or P

rocu

rem

ent A

ppea

l Boa

rd

if th

ey w

ish.

N

o pa

ralle

l pro

visi

ons

for c

onsu

ltanc

y.

I2

Is th

e ag

ency

requ

ired

to d

ebrie

f un

succ

essf

ul b

idde

rs a

nd p

ublis

h de

tails

of

the

cont

ract

aw

ard?

Bid

ders

may

requ

est d

ebrie

fing

afte

r no

tific

atio

n of

con

tract

aw

ard

(CG

8.2

) (P

G

8.8)

C

onsu

ltant

s m

ay re

ques

t deb

riefin

g af

ter

publ

icat

ion

of c

ontra

ct a

war

d (C

G 9

.4.1

) C

ontra

ct a

war

ds m

ust b

e pu

blis

hed

on th

e N

PA

web

site

, any

PE

web

site

and

any

oth

er

appr

opria

te m

edia

. (P

G 8

.10,

CG

9.3

) Fo

r goo

ds/w

orks

, pub

licat

ion

in a

new

spap

er

－213－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

40

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

of

wid

e na

tiona

l circ

ulat

ion

is re

quire

d fo

r co

ntra

cts

over

SLR

250

,000

,000

(PG

8.1

0)

The

PE

sho

uld

publ

ish

prom

ptly

in it

s w

ebsi

te (i

f ava

ilabl

e), t

he N

PA

web

site

an

d/or

any

oth

er a

ppro

pria

te m

edia

, the

fo

llow

ing

parti

cula

rs in

rega

rd to

con

tract

s on

w

hich

aw

ards

hav

e be

en m

ade:

(a

) des

crip

tion

of th

e C

onsu

lting

Ser

vice

s fo

r w

hich

pro

posa

ls w

ere

invi

ted;

(b

) the

nam

es o

f all

cons

ulta

nts

who

su

bmitt

ed p

ropo

sals

; (c

) nam

e of

the

succ

essf

ul c

onsu

ltant

; (d

) am

ount

at w

hich

the

cont

ract

was

aw

arde

d;

(e) i

n th

e ca

se o

f a c

ontra

ct a

war

ded

to a

fo

reig

n pr

inci

pal w

ho h

as a

loca

l age

nt, t

he

nam

e of

the

loca

l age

nt.

I3

Wha

t pro

cedu

res

and

cont

rols

app

ly to

co

ntra

ct a

men

dmen

ts a

nd v

aria

tions

? W

orks

var

iatio

n or

ders

may

be

perm

itted

w

ithin

the

cont

ract

con

ditio

ns. V

aria

tions

w

ithin

the

cont

ract

con

tinge

ncy

(usu

ally

10

%) m

ay b

e au

thor

ised

by

the

head

of

depa

rtmen

t/pro

ject

dire

ctor

. Whe

re th

e co

ntin

genc

y is

exc

eede

d or

ther

e is

no

cont

inge

ncy,

the

varia

tion

mus

t be

appr

oved

by

a h

ighe

r aut

horit

y, a

s sp

ecifi

ed in

the

man

ual.

(PG

8.1

3)

Ext

ensi

ons

of ti

me

may

be

gran

ted

in

exce

ptio

nal c

ircum

stan

ces.

(PG

8.1

4)

No

prov

isio

ns o

n co

ntra

ct a

men

dmen

ts fo

r go

ods

or c

onsu

ltanc

y se

rvic

es.

I4

Wha

t dis

pute

reso

lutio

n pr

oced

ures

are

in

clud

ed in

con

tract

s?

Con

tract

s to

sta

te th

at d

ispu

te s

ettle

men

t will

be in

acc

orda

nce

with

the

Arb

itrat

ion

Act

of

Sri

Lank

a, e

xcep

t whe

re fu

ndin

g ag

enci

es

requ

ire a

ltern

ativ

e pr

ovis

ions

. S

ubje

ct to

the

Arb

itrat

ion

Act

, Rul

es o

f A

rbitr

atio

n of

the

Inte

rnat

iona

l Cha

mbe

r of

－214－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

41

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

C

omm

erce

or U

nite

d N

atio

ns C

omm

issi

on

on In

tern

atio

nal T

rade

Law

or a

ny o

ther

ac

cept

able

rule

s re

com

men

ded.

(P

G 5

.4.1

2, C

G 6

.6.5

) J

Rec

ord

Kee

ping

and

Com

mun

icat

ions

J1

Is

the

agen

cy re

quire

d to

mai

ntai

n re

cord

s of

pr

ocur

emen

t act

iviti

es?

Giv

e de

tails

of t

he

cont

ents

requ

ired

No

gene

ral r

ules

on

reco

rd-k

eepi

ng in

the

guid

elin

es, a

lthou

gh s

peci

fic re

cord

s (s

uch

as th

e M

PP

and

eva

luat

ion

repo

rt) a

re

refe

rred

to.

J2

Are

com

mun

icat

ions

with

bid

ders

and

su

pplie

rs re

quire

d to

be

in w

ritin

g or

co

nfirm

ed in

writ

ing?

No

gene

ral r

ules

on

writ

ten

com

mun

icat

ions

, bu

t spe

cific

rule

s (s

uch

as c

larif

icat

ions

) re

quire

this

.

J3

Mus

t com

mun

icat

ions

suc

h as

bid

cl

arifi

catio

ns a

nd p

re-b

id m

eetin

g m

inut

es b

e se

nt to

all

bidd

ers?

All

bidd

ers

to b

e pr

ovid

ed w

ith th

e sa

me

info

rmat

ion

and

assu

red

of e

qual

op

portu

nitie

s to

obt

ain

addi

tiona

l inf

orm

atio

n.

Pre

-bid

mee

ting

min

utes

to b

e ci

rcul

ated

to

all b

idde

rs (P

G 5

.3.1

4)

Cla

rific

atio

ns d

urin

g ev

alua

tion

to b

e in

w

ritin

g (P

G 7

.9.9

)

K

Bid

der C

ompl

aint

s

K

1 Is

ther

e an

y m

echa

nism

ena

blin

g bi

dder

s to

ch

alle

nge

proc

urem

ent d

ecis

ions

? A

nd to

ap

peal

the

resp

onse

?

Bid

ders

may

sub

mit

a re

pres

enta

tion

agai

nst

the

awar

d de

cisi

on.

Whe

re p

rocu

rem

ent i

s by

the

MP

C,

repr

esen

tatio

ns a

re to

the

Sec

reta

ry o

f the

P

E. A

join

t MP

C/T

EC

mee

ting

cons

ider

s an

d re

ports

to th

e S

ecre

tary

with

in 1

4 da

ys.

Sec

reta

ry to

act

in a

ccor

danc

e w

ith

reco

mm

enda

tions

. W

here

pro

cure

men

t is

by th

e C

AP

C,

repr

esen

tatio

ns a

re to

the

Pro

cure

men

t A

ppea

l Boa

rd a

t the

Pre

side

ntia

l Sec

reta

riat.

App

eal B

oard

to in

vest

igat

e an

d pr

ovid

e a

The

com

plai

nts

mec

hani

sms

appe

ars

to b

e w

eak,

lack

ing

inde

pend

ence

, hav

ing

no

appe

al a

gain

st th

e or

igin

al c

onsi

dera

tion

of

the

com

plai

nt a

nd la

ckin

g du

e pr

oces

s.

Cab

inet

invo

lvem

ent g

ives

the

pote

ntia

l for

po

litic

al in

terfe

renc

e.

All

prov

isio

ns o

n co

mpl

aint

s ar

e in

clud

ed in

th

e pr

ocur

emen

t gui

delin

es o

nly.

－215－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

42

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

re

port

to c

abin

et e

ither

end

orsi

ng th

e P

C

deci

sion

or p

rovi

ding

an

inde

pend

ent a

war

d re

com

men

datio

n. N

o tim

esca

les

set f

or th

e re

port.

K

2 A

re c

ompl

aint

s an

d ap

peal

s he

ard

by a

n in

depe

nden

t bod

y?

Inve

stig

atio

n an

d de

cisi

on o

n a

com

plai

nt is

en

tirel

y w

ithin

the

PE

for l

ower

val

ue

proc

urem

ent.

For h

ighe

r val

ue p

rocu

rem

ent,

the

Pro

cure

men

t App

eal B

oard

repo

rts to

ca

bine

t, w

ho a

ppoi

nted

the

CA

PC

.

K3

Doe

s an

y co

mpl

aint

s m

echa

nism

follo

w

appr

opria

te p

roce

dure

s in

term

s of

tim

esca

les,

doc

umen

tatio

n re

quire

men

ts

etc.

?

No,

det

ails

in g

uide

lines

are

ver

y lim

ited.

L Pr

even

tion

of C

orru

ptio

n

L1

Is

ther

e a

clea

r pol

icy

and

rule

s pr

ohib

iting

co

rrup

t and

frau

dule

nt p

ract

ices

? P

G/C

G 1

.4 c

over

s et

hics

and

incl

udes

a

proh

ibiti

on o

n ab

usin

g po

wer

s an

d on

ac

cept

ance

of g

ifts

and

indu

cem

ents

.

L2

Is th

ere

a pr

ocur

emen

t cod

e of

con

duct

or

othe

r rul

es c

over

ing

area

s su

ch a

s gi

fts,

hosp

italit

y an

d co

nflic

ts o

f int

eres

t?

PG

/CG

1.4

. als

o re

quire

s co

nfid

entia

lity

and

for c

onfli

cts

of in

tere

st to

be

decl

ared

and

an

y of

ficia

l with

a c

onfli

ct to

dis

asso

ciat

e hi

mse

lf fro

m th

e pr

oces

s.

PG

2.1

2/C

G 2

.9 re

quire

s P

C, T

EC

and

CP

C

mem

bers

to s

ign

a de

clar

atio

n co

verin

g co

nfid

entia

lity,

impa

rtial

ity a

nd a

bsen

ce o

f pe

rson

al in

tere

st.

M

Oth

er In

form

atio

n

M

1 N

ote

any

othe

r inf

orm

atio

n of

rele

vanc

e co

ncer

ning

the

proc

urem

ent s

yste

m e

.g. u

se

of e

-pro

cure

men

t

Sri

Lank

a ha

s no

stra

tegi

c pl

an o

r ref

orm

ag

ency

for d

evel

opin

g pu

blic

pro

cure

men

t A

lso

has

no fo

rmal

pla

n fo

r e-G

P. T

he P

G

allo

w u

se o

f ele

ctro

nic

mea

ns fo

r pub

lishi

ng

invi

tatio

n no

tices

, ins

pect

ing

invi

tatio

n

－216－

St

udy

of N

atio

nal P

rocu

rem

ent

Syst

em o

f Sr

i Lan

ka

Crow

n Ag

ents

43

No

Que

stio

n D

etai

ls o

f Pro

cure

men

t Sys

tem

C

omm

ents

and

Rec

omm

enda

tions

do

cum

ents

and

for b

idde

rs to

see

k cl

arifi

catio

ns. E

lect

roni

c bi

d su

bmis

sion

is

not p

erm

itted

. (P

G 9

.8)

－217－


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－219－