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
i
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
L
A
D
E
S
H
BHUTAN
NEPAL
PAKISTANS
R
I
L
A
N
K
A
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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
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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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Study of National Procurement System of Bangladesh Crown Agents
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Section 1: Introduction
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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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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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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
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Study of National Procurement System of Bangladesh Crown Agents
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.
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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.
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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.
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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.
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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.
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Section 3: Recommendations
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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. .
8.2 Institutional Framework
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.
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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
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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
Japan International Cooperation Agency
Report September 2012
Crown Agents Reference No. 28643
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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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Section 1: Introduction
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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 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.
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 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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Section 2: Summary of 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. Legal and Institutional Framework
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.
5.2 Scope of Application
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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5.3 Institutional Framework
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.
5.3.1 Procurement Responsibilities
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.
5.3.2 Regulation and Oversight
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
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 PAs on their interpretation
Information dissemination: operating a procurement website and publishing a bulletin
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Capacity building: arranging training and other programmes for public and private sector, arranging accreditation programmes for public sector procurement staff
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.
6. Procurement Procedures and Practices
6.1 Registration and Participation
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.
6.2 Procurement Planning
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
6.3 Procurement Methods
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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6.5 Bidding Process for Goods, Works and Non-Consultancy Services
6.5.1 Qualifications and Advertising
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.
6.5.2 Bidding Documents and the Bidding Process
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
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 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.
6.6 Procurement Process for Consultancy Services
6.6.1 Advertising and Shortlisting
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.
6.7 Contract Award and Management
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.
6.8 Record Keeping and Communications
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.
7. Oversight and Enforcement Systems
7.1 Bidder Complaints
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.
7.2 Prevention of Corruption
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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Section 3: Recommendations
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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;
complete all supporting documents and templates, such as guidelines and SBDs, including those for framework contracts;
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
8.2 Institutional Framework
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.
8.3 Capacity Development
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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Study of National Procurement System of Bhutan Crown Agents
16
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.
8.4 Complaints Mechanism
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-
Study of National Procurement System of Bhutan Crown Agents
17
Appendix A: Completed Questionnaire on National Procurement System
-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
will
not b
e pr
oces
sed
whe
re th
ere
is c
onfli
ct o
f in
tere
st o
r leg
al a
ctio
n fo
r fra
ud o
r cor
rupt
ion,
R
ejec
tion
of b
ids
requ
ired
in c
ases
of c
ollu
sion
, A
n In
tegr
ity
Pac
t fo
rms
part
of
the
bidd
ing
docu
men
t and
is s
igne
d by
PA
and
bid
der.
Als
o al
l mem
bers
of E
C m
ust d
ecla
re a
ny c
onfli
cts
of in
tere
st.
How
ever
, no
ethi
cal c
ode
for
publ
ic p
rocu
rem
ent i
n pl
ace
L2
Is t
here
a p
rocu
rem
ent
code
of
cond
uct
or o
ther
rul
es
cove
ring
area
s su
ch a
s gi
fts,
hosp
italit
y an
d co
nflic
ts o
f in
tere
st?
PR
R g
ives
cod
e of
con
duct
for
offic
ials
invo
lved
in
proc
urem
ent
whi
ch in
clud
es a
ctin
g im
parti
ally
and
in
the
pub
lic i
nter
est,
avoi
ding
con
flict
of
inte
rest
, m
aint
aini
ng
conf
iden
tialit
y an
d no
t co
mm
ittin
g co
rrup
t, fra
udul
ent o
r col
lusi
ve p
ract
ices
. P
RR
gi
ves
code
of
co
nduc
t fo
r bi
dder
s w
hich
co
vers
br
iber
y,
mis
repr
esen
tatio
n,
coer
cion
, co
llusi
on,
inte
rferin
g w
ith o
ther
bid
ders
, se
ekin
g to
in
fluen
ce th
e P
A a
nd c
onfli
ct o
f int
eres
t.
Inte
grity
Pac
t pro
vide
s lim
ited
code
of c
ondu
ct
Inte
grity
Pac
t co
vers
by
no
deta
ils
no
caps
fo
r gi
fts/h
ospi
talit
y.
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 sys
tem
e.g
. use
of e
-pro
cure
men
t E
-pro
cure
men
t not
ado
pted
in B
huta
n
As
men
tione
d ab
ove,
st
art
has
been
m
ade
tow
ards
ta
rget
of
e-
proc
urem
ent..
W
orld
Ban
k pr
ojec
t to
ass
ist
PP
PD
has
bee
n ex
tend
ed b
y
-93-
St
udy
of N
atio
nal P
rocu
rem
ent
Syst
em o
f Bh
utan
Cr
own
Agen
ts
34
No
Que
stio
n D
etai
ls o
f Pro
cure
men
t Sys
tem
C
omm
ents
and
R
ecom
men
datio
ns
1 ye
ar a
nd w
ill in
clud
e st
udy
visi
ts t
o co
untri
es u
sing
e-
proc
urem
ent
incl
udin
g pr
obab
ly
Sing
apor
e an
d P
hilip
pine
s an
d ex
pect
ed
phas
e II
of
proj
ect
will
in
clud
e se
lect
ing
a sy
stem
.
-94-
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
-95-
APPENDIX 3 : STUDY OF NATIONAL PROCUREMENT SYSTEM (NEPAL)
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Study of National Procurement System of Nepal
Japan International Cooperation Agency
Report June 2012
Crown Agents Reference No. 28643
-99-
Study of
Table
List of Ab
Sectio
Section
1. Stud
2. Pur
3. Met
Section
4. Ove
5. Leg5.1 Le5.2 Sc5.3 Ins
6. Proc6.1 Re6.2 Pro6.3 Pro6.4 Bid6.5 Pro6.6 Co6.7 Re
7. Ove7.1 Bid7.2 Pre
Section
8. Rec8.1 Le8.2 Ins8.3 Ca8.4 Co
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
al and Instegal Frameworcope of Applicastitutional Fram
curement egistration andocurement Plaocurement Medding Processocurement Pro
ontract Award ecord Keeping
ersight anddder Complainevention of Co
n 3: Recom
commendaegal Frameworstitutional Framapacity Develoomplaints Mec
ndices
dix A: Com
ocurement S
tents
duction
urement S
eport
mary of Na
Procureme
titutional Frk ationmework
Procedured Participationanning ethods s for Goods, Wocess for Conand Managem
g and Commun
d Enforcemnts orruption
mmendatio
tions rk mework opment chanism
mpleted Q
System of Ne
ystems an
ational Pro
nt System
Framework
es and Prac
Works and Nonnsultancy Servment nications
ment System
ons
Questionna
epal
i
d Capacity
ocurement
and Refor
k
ctices
n-Consultancyvices
ms
aire on Nat
y in South
t System
rms
y Services
tional Pro
Asia
curement
Crown
t System
n Agents
(ii)
Page
1
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Study of
List o
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-102-
Study of National Procurement System of Nepal Crown Agents
1
Section 1: Introduction
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Study of National Procurement System of Nepal Crown Agents
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 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.
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 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.
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Study of National Procurement System of Nepal Crown Agents
3
Section 2: Summary of National Procurement System
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Study of National Procurement System of Nepal Crown Agents
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. Legal and Institutional Framework
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.
5.2 Scope of Application
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.
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Study of National Procurement System of Nepal Crown Agents
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.
5.3 Institutional Framework
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.
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. 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.
5.3.2 Regulation and Oversight
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:
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, monitoring and auditing 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: 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.
6. Procurement Procedures and Practices
6.1 Registration and Participation
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
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Study of National Procurement System of Nepal Crown Agents
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.
6.2 Procurement Planning
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.
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. 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.
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Study of National Procurement System of Nepal Crown Agents
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.
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 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.
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 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.
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:
30 days for national bidding or pre-qualification
45 days for international bidding or pre-qualification
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
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Study of National Procurement System of Nepal Crown Agents
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
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 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.
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 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.
6.5.3 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 Nepalese human resources.
Award is to the first-ranked proposals, according to the selection method specified in the RFP. This may be:
the Quality and Cost method;
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Study of National Procurement System of Nepal Crown Agents
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.
6.6 Contract Award and Management
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.
6.7 Record Keeping and Communications
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.
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Study of National Procurement System of Nepal Crown Agents
10
7. Oversight and Enforcement Systems
7.1 Bidder Complaints
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.
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 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.
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Study of National Procurement System of Nepal Crown Agents
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Section 3: Recommendations
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Study of National Procurement System of Nepal Crown Agents
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;
complete all supporting documents and templates, such as guidelines and SBDs, including those for framework contracts;
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. .
8.2 Institutional Framework
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.
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 chief of the PE and staff with technical involvement, such as the preparation of specifications and terms of reference and participation in evaluation committees.
8.4 Complaints Mechanism
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.
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Study of National Procurement System of Nepal Crown Agents
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Appendix A: Completed Questionnaire on National Procurement System
-115-
St
udy
of N
atio
nal P
rocu
rem
ent
Syst
em o
f N
epal
Cr
own
Agen
ts
14
Stud
y on
the
Nat
iona
l Pro
cure
men
t Sys
tem
of N
epal
Th
is s
tudy
for N
epal
is p
rimar
ily a
des
k st
udy
base
d on
:
Th
e P
PM
O w
ebsi
te
Th
e P
ublic
Pro
cure
men
t Act
and
Reg
ulat
ions
The
July
201
0 N
epal
Pub
lic P
rocu
rem
ent S
trate
gic
Fram
ewor
k (N
PP
SF)
Th
is h
as b
een
supp
lem
ente
d an
d up
date
d by
fiel
d in
put f
rom
our
loca
l con
sulta
nt a
nd o
ur a
sses
smen
t fie
ld v
isits
. It
cove
rs th
e ke
y el
emen
ts o
f the
nat
iona
l pro
cure
men
t sys
tem
, but
is n
ot e
xhau
stiv
e. W
here
rele
vant
, it h
ighl
ight
s fe
atur
es o
r pra
ctic
es w
hich
di
ffer f
rom
thos
e co
ntai
ned
in J
ICA
Gui
delin
es.
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
lega
l fra
mew
ork?
i.e.
is
ther
e a
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-
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
-135-
APPENDIX 4 : STUDY OF NATIONAL PROCUREMENT SYSTEM (PAKISTAN)
-137-
Study of National Procurement System of Pakistan
Japan International Cooperation Agency
Report December 2012
Crown Agents Reference No. 28643
-139-
Study of
Table
List of Ab
Sectio
Section
1. Stud
2. Pur
3. Met
Section
4. Ove
5. Leg5.1 Le5.2 Sc5.3 Ins
6. Proc6.1 Re6.2 Pro6.3 Pro6.4 Bid6.5 Pro6.6 Co6.7 Re
7. Ove7.1 Bid7.2 Pre
Section
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Section 1: Introduction
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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 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.
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.
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 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
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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.
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Section 2: Summary of National Procurement System
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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. Legal and Institutional Framework
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:
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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]
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5.2 Scope of Application
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.
5.3 Institutional Framework
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.
5.3.1 Procurement Responsibilities
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.
5.3.2 Regulation and Oversight
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.
6. Procurement Procedures and Practices
6.1 Registration and Participation
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.
6.2 Procurement Planning
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.
6.3 Procurement Methods
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.
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 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.
6.4.2 Bidding Documents and the Bidding Process
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:
15 days for national bidding or pre-qualification
30 days for international bidding or pre-qualification
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
Evaluation must be based on the criteria stated in the bidding document and evaluation procedures are consistent with international accepted practices.
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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.
6.5 Procurement Process for Consultancy Services
6.5.1 Advertising and Shortlisting
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.
6.5.3 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 Pakistani human resources.
Award is to the first-ranked proposals, according to the selection method specified in the RFP. This may be:
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.
6.6 Contract Award and Management
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.
7. Oversight and Enforcement Systems
7.1 Bidder Complaints
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.
7.2 Prevention of Corruption
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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Section 3: Recommendations
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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.
8.2 Institutional Framework
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.
8.3 Capacity Development
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.
8.4 Complaints Mechanism
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.
STEP 4 : (Within 30 days after step 3)
Critical study including verification, by the Visiting Team, of the information furnished to the EA&QEC; (hard and soft copies provided).
STEP 5 : (Within 15 days after step 4)
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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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
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APPENDIX 5 : STUDY OF NATIONAL PROCUREMENT SYSTEM (SRI LANKA)
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Japan International Cooperation Agency
Report August 2012
Crown Agents Reference No. 28643
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Study of
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Section 1: Introduction
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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 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.
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 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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Section 2: Summary of 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. Legal and Institutional Framework
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.
5.2 Scope of Application
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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5.3 Institutional Framework
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.
5.3.1 Procurement Responsibilities
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.
6. Procurement Procedures and Practices
6.1 Registration and Participation
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.
6.2 Procurement Planning
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.
6.3 Procurement Methods
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 Bidding Process for Goods, Works and Non-Consultancy Services
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.
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.
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. 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.
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 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.
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:
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
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, 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 Procurement Process for Consultancy Services
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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6.5.3 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.
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.
6.6 Contract Award and Management
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.
6.7 Record Keeping and Communications
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.
7. Oversight and Enforcement Systems
7.1 Bidder Complaints
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.
7.2 Prevention of Corruption
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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Section 3: Recommendations
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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
8.2 Institutional Framework
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.
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 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.
8.4 Complaints Mechanism
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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Appendix A: Completed Questionnaire on National Procurement System
-191-
St
udy
of N
atio
nal P
rocu
rem
ent
Syst
em o
f Sr
i Lan
ka
Crow
n Ag
ents
18
Stud
y on
the
Nat
iona
l Pro
cure
men
t Sys
tem
of S
ri La
nka
Stud
y on
the
Nat
iona
l Pro
cure
men
t Sys
tem
of S
ri La
nka
This
stu
dy is
prim
arily
a d
esk
stud
y to
be
com
plet
ed u
sing
:
Rel
evan
t web
site
s e.
g. o
f a re
gula
tory
bod
y or
min
istry
resp
onsi
ble
for p
rocu
rem
ent
R
elev
ant l
egal
doc
umen
ts e
.g. p
rocu
rem
ent l
egis
latio
n an
d/or
regu
latio
ns
In
form
atio
n fro
m o
ther
rece
nt a
sses
smen
ts o
f nat
iona
l sys
tem
s e.
g. fr
om o
ther
don
ors
How
ever
, it s
houl
d al
so in
clud
e fie
ld in
put f
rom
loca
l con
sulta
nts
and
shou
ld b
e fu
rther
sup
plem
ente
d or
upd
ated
by
the
asse
ssor
follo
win
g fie
ld v
isits
. Th
e st
udy
has
used
:
NP
A/D
epar
tmen
t of P
ublic
Fin
ance
web
site
Pro
cure
men
t Gui
delin
es, 2
006
G
uide
lines
, Sel
ectio
n an
d E
mpl
oym
ent o
f Con
sulta
nts,
200
7
Cou
ntry
Pub
lic P
rocu
rem
ent P
rofil
e S
urve
y su
bmitt
ed to
the
AD
B P
rocu
rem
ent F
orum
by
the
Min
istry
of F
inan
ce &
Pla
nnin
g It
has
not y
et re
view
ed p
rocu
rem
ent/c
onsu
ltanc
y m
anua
ls, a
ll ci
rcul
ars
or th
e S
BD
s.
Und
er D
etai
ls o
f Pro
cure
men
t Sys
tem
, pro
vide
an
over
view
of t
he k
ey d
etai
ls o
f the
nat
iona
l reg
ulat
ory
fram
ewor
k on
ly. W
here
ther
e is
info
rmat
ion
to in
dica
te th
at th
e re
gula
tory
fram
ewor
k is
not
follo
wed
, ind
icat
e an
y di
scre
panc
ies
in a
ctua
l pra
ctic
e. S
imila
rly, w
here
the
regu
lato
ry fr
amew
ork
does
n’t c
over
a p
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-
Crown Agents St Nicholas House St Nicholas Road Sutton Surrey SM1 1EL United Kingdom
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-219-