public procurement rules 2006

1. MD ABDUS SATTAR
EXECUTIVE ENGINEER
(PROCUREMENT)
LOCAL GOVERNMENT
ENGINEERING DEPARTMENT
OVERVIEW OF PPA, 2006 and
PPR, 2008

2. Public Procurement
Procurement means the purchasing or
hiring of Goods, or acquisition of Goods
through purchasing and hiring, and the
execution of Works and performance of
Services by any contractual means
What is Procurement?
Public Procurement is Procurement using
Public Funds

6. Area : 147,570 km2
Population : 160 million
(>1000/ km2)
Economy : Agriculture based
Bangladesh : General Information
Socio-Economy

7. Public Procurement System in Bangladesh up to
2003
 The constitution has no direct provision on public
procurement.
 No legal framework.
 The public procurement procedures and practices
have evolved over the years from the days of
British and subsequently Pakistani rule.

8. Public Procurement System in Bangladesh up to
2003
 CGFR issued in 1930 under British rule outlines
general principles for government contracts to
follow,
 leaving it to the departments to frame detailed rules
and procedures for their procurements.
 Since independence in 1971, the public procurement
practices have been influenced by the WB, the ADB,
and other donors since the bulk of public
procurement is externally funded.

9. Public Procurement System in Bangladesh up to
2003
 Some departments, autonomous boards, and public
undertakings have drafted their own set of
procedures or a manual, and
 The rest follow the PWD code i.e Form No. 2911 for
Works and Form No. 2908 for Goods Procurement.

10. Joint Collaboration
In 1999 WB and ADB
conducted joint review of
the country portfolio
performance and
prepared an action plan
for government on public
procurement
Public Procurement System

11. CPAR Findings & Recommendations
– Absence of Legal Framework
– Bureaucratic Procedure
– Lack of Competent Staff
– Poor Quality Bidding Document
– Ineffective Contract Administration
– Establish Policy Unit
– Carry out Reforms
– Improve Proc. Capacity
CPAR 2002
Findings
Recommendations

12. Established:
4/2002
Institution for
Implementation of
Regulatory
Framework
Central Procurement Technical Unit (CPTU)

13. RESPONSIBILITIES OF CPTU
 Propose necessary act to the government.
 Monitoring Compliance with and implementation of this
Act;
 Prepare and distribute STDs
 Propose any Amendments to the Act, Rules or other
Documents.
 Issue guidance and instructions regarding the
interpretation and implementation of these Rules
and other Documents issued by it and
 Advice and assistance to Procuring Entities as well as
bidding communities..

14. RESPONSIBILITIES OF CPTU
 Prepare and submit to the Government Annual
Report &
 A summary of Procurement Post Reviews by PEs and
by the CPTU;
 Statistics on training and other capacity
development activities;
 Summary of complaints filed and sent to the Review
Panel and status of complaints etc.

15. GFR…, 2908 & 2911
PPR 2003
PPA 2006
PPR 2008
e-GP Guidelines 2011
Evolution of Public Procurement Legal
Framework & Digitization
PPA 2006
PPR 2008

16. PPA, 2006 & PPR, 2008
 Transparency
 Accountability
 Equitable treatment
 free and fair competition
4 Basic Principle:
Ultimate Goal:
Ensure VfM Through 3Es
 Efficient
 Effective &
 Economical Procurement

17. PP Framework in Bangladesh – Four
Pillars
 PPA 2006 (latest amended 2018)
 PPR 2008 (amended accordingly)
 STDs/SRFPs
 e-Government Procurement (e-GP)
Guidelines 2011
 Delegation of Financial Power (DoFP)

18. পিপিএ, ২০০৬ ও পিপিআর ২০০৮ এর সার
সংক্ষেি
18
বিিরণ বিবিএ-২০০৬
বিবিআর-
২০০৮
জারী
৬ জুলাই
২০০৬
২৪ জানুয়ারী
২০০৮
কার্ য
কর
৩১ জানুয়ারী
২০০৮
৩১ জানুয়ারী
২০০৮
ধারা/বিবধ ধারা ৭৩টি বিবধ ১৩০টি
অধযায় ৯টি ৯টি
অধযায়-১: প্রাথবিক বিষয়াবি ধারা ১-৪ বিবধ ১-৩
অধযায়-২: িরিত্র িা প্রস্তাি প্রস্তুতকরণ,
কবিটি, ইতযাবি ধারা ৫-৮ বিবধ ৪-১২
অধযায়-৩: ক্রয়সংক্রান্ত নীবতসিুহ ধারা ৯-৩০ বিবধ ১৩-৬০
অধযায়-৪: িণয ও কার্ যক্রয়িদ্ধবতসিূহ ধারা ৩১-৩৬ বিবধ ৬১-৮৯
অধযায়-৫: িুদ্ধদ্ধিৃবিক ও পিশাগত
পসিাক্রয়িদ্ধবতসিূহ ধারা ৩৭-৩৯
বিবধ ১০৩-
১২৬

19. PPA 2006 and PPR 2008
PPA
2006
PPR
2008
Primary legislation
focuses on main
public
procurement issues
Secondary legislation addresses
those which, although being
important for a proper and
effective public procurement
procedure to be
carried out, may be
better spelled
out in
the secondary
legislation
Guiding principle in designing PPA & PPR

20. PPR 2008 and e-GP Guidelines 2011
eGP
Guidelines
2011
PPR
2008
Supplement to PPR
2008
focuses on main
electronic public
procurement issues
Secondary legislation addresses
those which, although being
important for a proper and
effective public
procurement
procedure to be
carried out, may
be better
spelled out in
the secondary
legislation

21. STD and DoFP
STD/SRFP
DoFP
A Tool for operation
of Act & Rule A tool for the Approving
Authority addresses the
Tender Approval Ceiling of Different
Category Authorities
Separate for
Development
and Revenue
Budget issued
by the MoF
Separate for Goods,
Works and
Services based on
ceiling issued by
CPTU

22. Intellectual
& Professional Service
Goods
&
Works
Procurement
involving
international and
national Tendering
follow STD
Procurement
involving
international and
national
Consultancy follow
RFP Document
Standard Tender/Proposal
Documents
A Tool for operation of Act & Rule

23. Nature and
Size of the
Contract
Structure of the STD
IFT
Invite
Potential
Tenderer
ITT
-Regarding
the Form &
Procedure
TDS
Specifies
the
Parameter
GCC
General
provision
for
Contract
PCC
- Modify the
GCC for
particular
Procurement

24. Nature and
Size of the
Contract
Structure of the RFP
LOI
Including
the Short
List
ITC
-Regarding
Technical &
Financial
Proposal
PDS/TO
R
Proposal
Specific
parameter
GCC
General
provision
for
Contract
PCC
- Modify the
GCC for
particular
Procurement

25. Procurement
Planning
Opening
Procuring
Entity
25
Processing

26. Goods & Related Services
Works & Physical Services
OTM
Open
Tendering
Method
LTM
Limited
Tendering
Method
TSTM
Two-Stage
Tendering
Method
RFQM
Request for
Quotation
Method
DPM
Direct
Procurement
Method
Distinct Methods
Methods: Goods and Works
Taking into account the thresholds and conditions
OSTETM
One Stage
Two Envlpe
Tendering
Method
Compliance
with
the
conditions
specified
in
the
Rules
Open Tendering Method OTM: Preferred Method
Competition under non-discriminatory and equal terms

27. OTM : Key Aspects
 Invite Eligible Tenderers through public
advertisement
 Sell Tender Documents or place on e-GP
portal
 Allowing minm time for submission
 Urgent National Need: GoB may reduce
time
 With or without Pre-qualification
 In case of PQ, TDs to Pre-qualified
Candidates only
Rule-
61
Open Tendering Method – Preferred!!

28. From enlisted
Suppliers
or Contractors
 Max.Tk. 25 lakh
for Goods and
related services
and “Stand alone
service”
LTM: with Threshold
 Max. Tk. 3 Crore
for Works and
Physical services
If tender price exceeds the
specified threshold
Approval of Contract
by next higher
authority required
Rule-
63(2)&(3)
4
Contracts for stand-alone Services may be renewed on annual or
term basis, not more than twice

29. Direct Procurement Method DPM
Rule- 75
Use of DPM is circumstances specific
FORMS
Direct
Contracting
Additional
Delivery
Repeat
Order
Variation
Order
Extra
Work Order

30. DCP
Direct Cash Purchase (DCP)
Low value
Goods, urgent
and essential
Services
Example:
Maintenance,
repairs,
transportation etc
Tk 25,000
(each case)
Annual
Aggregate
Tk. 10 lakh
Rule- 81
Under Approved Budget: Rule-74(3)

31. FA
Force Account
May be used for
hiring of direct
Labour for
departmental needs
Purchase of Materials, tools
and rental of additional
equipment required to perform
departmental work: Use other
methods (RFQ, Direct
Contracting etc.)
Each case
Max. Tk 3
lakh
Rule- 82
Under Approved Budget: Rule-74(3)

32. RFQM: Thresholds
Tk. 3 lakh (Each case.)
Annual aggregate Tk. 15
lakh
G
W
G
W
Revenue (Maxm)
Development (Maxm)
Tk. 6 lakh (Each case)
Annual Tk. 25 lakh
Tk. 5 lakh (Each case)
Annual Tk. 30 lakh
Tk. 10 lakh (Each case)
Annual Tk. 60 lakh

Readily
available
Off-the-
shelf
Goods

Low
value
simple
Works
and
physical
Services

33. Turnkey
Contracts or
Contracts for
large complex
nature of
plants
TSTM
 Not possible complete technical specifications in advance
Rule-
65
Supply, installation
and commissioning
of Processing Plants
or works of complex
nature,
Communication
Technology
 Alternative Tech. approaches may not be available within
the knowledge of PE
 PE lacks the capability to prepare specifications

34. OSTETM
Applicable for same contracts as
TSTM, but PE is capable of
preparing the complete tender
documents, incorporating full
specifications,
Bill of Quantities, Schedule of
Requirements, Designs etc.

35. Methods: Consultancy Services
QCBS Quality and Cost Based Selection
Short listed consultants compete on the basis of quality and cost
FBS Fixed Budget Selection
Simple and specific nature of services with a fixed budget
LCS Least Cost Selection
Standard or routine nature, and where the cost of the service is within the
prescribed price limit
SSS Single Source Selection
Continuation of on-going or just completed, low value, speedy selection in
emergency situation, rare experience/qualification, urgent need (catastrophic event)
CSOS Community Service Organization Selection
Overall knowledge of community needs, local issues and community participation
are paramount
ICS Individual Consultant Selection
Qualified individual expert while no team work is required
SBCQ Selection Based on Consultants Qualifications
Very small high quality assignments, preparation & evaluation of competitive
proposal is not justified
DCS Design Contest Selection
Technical excellence and innovation are of prime considerations
Preferred
Prior
Approval
of
HOPE
or
AO

36. LGED PU Local Government Engineering Department
Procurement Unit
Combined
Evaluation
Negotiation
Award
Financial
REOI
Short-listing
Technical
Issuance &
Receipt of RFP
Evaluation
By
PEC
Following RFP & Rules
QCBS
Rule-105 Steps

37. COMPANIES
Approval Process
Three Distinct Streams of Approval
MINISTRY
DIVISION
DEPARTMENT
DIRECTORATE
CORPORATION
AUTONOMOUS BODY
SEMI-AUTONOMOUS
BODY

38. HOPE
[CEO,SECY]
PD
PM
AO
MINISTRY
CCGP
HOPE[CEO,SECY]
PD
PM
AO
BOARD OF
DIRECTORS
MINISTRY
CCGP
AS DESIGNATED
BY COMPANY’S
OWN
ADMINISTRATI
VE AND
FINANCIAL
DELEGATIONS
Approving Authorities
Approves Tenders/ Proposals
Determined by DoFP/Sub-Delegation except CCGP

39. HOPE
PD
PM
AO
AA
HOPE
PD
PM
AO
Evaluation Report (ER)
with
Recommendation for Award
EC
MINISTRYY
HOPE
Purchase Proposal along with (ER)
with Recommendation for Award
EC SECRETARY
PE
DECIDES
AND
RETURNS
ADD COMMENTS
MINISTER
DECIDES
AND
FORWARDS
PE
AA
Approval of Tender or Proposal
Rule-36(3)(a)
Ministry/Division/Department/Directorate

40. CCGP
RA
HOPE
Purchase Proposal along with
(ER) with
Recommendation for Award
EC
SECRETARY
Evaluation Report
with
Recommendation for Award
EC
SECRETARY
DECIDES AND RETURNS
PE
CCGP
DECIDES
PE
SECRETARY
3
SUMMARY
AA
Approval of Tender or Proposal
Rule-36(3)(a)
Ministry/Division/Department/Directorate

41. QA Session