REFORM ROADMAP OF PUBLIC PROCUREMENT SYSTEM & PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

1. 1
REFORM ROADMAP OF PUBLICREFORM ROADMAP OF PUBLIC
PROCUREMENT SYSTEMPROCUREMENT SYSTEM
&&
PROCUREMENT OFPROCUREMENT OF
CONSULTANCYCONSULTANCY
SERVICES REGULATIONS, 2010SERVICES REGULATIONS, 2010

2. 2
Types of ProcurementTypes of Procurement
• GoodsGoods
• WorksWorks
• ServicesServices

3. 3
BACKGROUNDBACKGROUND
•Statutory provisionStatutory provision
•Previous GuidelinesPrevious Guidelines

4. PUBLIC PROCUREMENTPUBLIC PROCUREMENT
REGULATIONSREGULATIONS
A.A. Public ProcurementPublic Procurement RegulationsRegulations, 2008, 2008
I.I. Standard Form of Bidding documents for procurement ofStandard Form of Bidding documents for procurement of
works.works.
II.II. Record of Procurement Proceeding shall be kept for atRecord of Procurement Proceeding shall be kept for at
atleast five years from the date of completion of contractatleast five years from the date of completion of contract
or rejection of bids.or rejection of bids.
III.III. Obtaining of record by any person, bidder, AuditorObtaining of record by any person, bidder, Auditor
General of Pakistan or any authorized officer.General of Pakistan or any authorized officer.
IV.IV. No liability to supplier or contractor in failure of keepingNo liability to supplier or contractor in failure of keeping
record of the procurement proceedings.record of the procurement proceedings. 4

5. B. Public ProcurementB. Public Procurement
Regulations,Regulations, 20092009
I.I. Posting of contract awards over 50 millionPosting of contract awards over 50 million
rupees on PPRA’s website.rupees on PPRA’s website.
II.II. Information relating to proprietary nature orInformation relating to proprietary nature or
against public interest can be withheld.against public interest can be withheld.
5

6. C. Public ProcurementC. Public Procurement
RegulationsRegulations, 2011, 2011
I.I. The ECC shall authorize or otherwiseThe ECC shall authorize or otherwise
whether or not to proceed in terms of Rulewhether or not to proceed in terms of Rule 55
of Public Procurement Rules, 2004.of Public Procurement Rules, 2004.
6

7. 7
ObjectivesObjectives
i)i) Appointment of ConsultantAppointment of Consultant
ii)ii) Nature of PostNature of Post
iii)iii) Methods of appointmentMethods of appointment
iv)iv) Request for ProposalsRequest for Proposals
v)v) EligibilityEligibility
vi)vi) Selection CommitteeSelection Committee
vii)vii) LiabilityLiability

8. 8
ROLE OF CONSULTANTROLE OF CONSULTANT
• Primary role is to assist your organizationPrimary role is to assist your organization
in certain area(s)in certain area(s)
• Provides the wisdom, overall guidanceProvides the wisdom, overall guidance
and help you avoid some mistakesand help you avoid some mistakes
• Act as an educator, facilitator, gatherAct as an educator, facilitator, gather
information, evaluate and a catalyst forinformation, evaluate and a catalyst for
deeper changedeeper change

9. 9
Regulation-1Regulation-1
DefinitionsDefinitions
• ““bidding” the formal procurement procedure.bidding” the formal procurement procedure.
• ““Consultant” an individual consultant or a consulting firm.Consultant” an individual consultant or a consulting firm.
• ““request for proposal” Set of bidding documents.request for proposal” Set of bidding documents.
• Expressions not contained in these regulationsExpressions not contained in these regulations

10. 10
Regulation-3Regulation-3
Methods for SelectionMethods for Selection
Determined prior to issuance of the request for proposals.Determined prior to issuance of the request for proposals.
A (i)A (i) Quality based selection.-Quality based selection.-
• Highly specialized and complex assignments,Highly specialized and complex assignments,
• Quality is the only factor taken into consideration :Quality is the only factor taken into consideration :
• Any procuring agency shall record its reasons and justifications inAny procuring agency shall record its reasons and justifications in
writingwriting
• Maintain the relevant recordMaintain the relevant record

11. 11
Procedure.-Procedure.-
a.a. Request for expression of interest shall be advertised.Request for expression of interest shall be advertised.
a.a. Request for Proposals shall sent to short-listedRequest for Proposals shall sent to short-listed
b.b. the evaluation of proposals shall be carried out in two(2) stages:-the evaluation of proposals shall be carried out in two(2) stages:-
i).i). the Technical Proposals shall be evaluated first ;the Technical Proposals shall be evaluated first ;
ii)ii) the financial proposals of technically highest ranked proposalthe financial proposals of technically highest ranked proposal
only shall be openedonly shall be opened
iii) The highest ranked proposal is accepted, if it suits to theiii) The highest ranked proposal is accepted, if it suits to the
procuring agency in all respects;procuring agency in all respects;

12. 12
B (i)B (i) Quality and cost based selection –Quality and cost based selection –
High quality is the prime consideration while cost is aHigh quality is the prime consideration while cost is a
secondary consideration; andsecondary consideration; and
ii)ii) Procedure for selectionProcedure for selection:-:-
a)a) a request for expression of interest as laid down ina request for expression of interest as laid down in
regulation 5 is advertised;regulation 5 is advertised;
b)b) a request for proposals shall be prepared and senta request for proposals shall be prepared and sent
to short-listed consultants selectedto short-listed consultants selected

13. 13
c)c) the evaluation of proposals shall be carried out in two (2)the evaluation of proposals shall be carried out in two (2)
stages:-stages:-
i)i) the Technical Proposals shall be evaluated firstthe Technical Proposals shall be evaluated first
ii)ii) the financial proposals of technically highest rankedthe financial proposals of technically highest ranked
proposals shall be openedproposals shall be opened
iii)iii) a combined evaluation of technical and financiala combined evaluation of technical and financial
proposals shall followproposals shall follow

14. 14
CC (i)(i) Least cost.-Least cost.- Assignments of standard or routineAssignments of standard or routine
nature, where well established practices and standards exist.nature, where well established practices and standards exist.
ii)ii) ProcedureProcedure
a). Following evaluation of proposals, the applicant offeringa). Following evaluation of proposals, the applicant offering
the lowest evaluated price shall be selected forthe lowest evaluated price shall be selected for
discussions.discussions.
b)b) Proposals passing technical score threshold shall thenProposals passing technical score threshold shall then
be treated equally and evaluated on the basis of cost onlybe treated equally and evaluated on the basis of cost only

15. 15
D (i)D (i) Single Source or Direct Selection.-Single Source or Direct Selection.- Used only inUsed only in
exceptional cases, where it provides clear advantage overexceptional cases, where it provides clear advantage over
competitioncompetition
a)a) For tasks which are natural continuation ofFor tasks which are natural continuation of
previous assignment and where continuity ofprevious assignment and where continuity of
technical services is unavoidable;technical services is unavoidable;
b)b) Repeat orders as provided under sub clause (iv)Repeat orders as provided under sub clause (iv)
of clause (c) of Rule 42 of PPRA Rules, 2004;of clause (c) of Rule 42 of PPRA Rules, 2004;
c)c) in cases of emergency as provided under (in cases of emergency as provided under (vv) of) of
clause (c) of Rule 42 of PPRA Rules, 2004; andclause (c) of Rule 42 of PPRA Rules, 2004; and
d)d) where only one consultant is qualified or haswhere only one consultant is qualified or has
experience of exceptional worth with referenceexperience of exceptional worth with reference toto
clause (c) or (d) of Rule 42 of PPRA Rules,clause (c) or (d) of Rule 42 of PPRA Rules,
2004; and2004; and

16. 16
iiii)) ProcedureProcedure
a)a) Single Source Selection method ensure economy andSingle Source Selection method ensure economy and
efficiency and provide equal opportunityefficiency and provide equal opportunity
b)b) Decision shall be approved in writing by the PrincipalDecision shall be approved in writing by the Principal
Accounting Officer concerned, on recommendation by aAccounting Officer concerned, on recommendation by a
CommitteeCommittee
c)c) Selected consultant shall be requested to submit aSelected consultant shall be requested to submit a
technical and financial proposaltechnical and financial proposal
d)d) Evaluation committee shall discuss technical or financial,Evaluation committee shall discuss technical or financial,
proposalsproposals

17. 17
E (i)E (i) Fixed budget.-Fixed budget.-
• Assignment is simple, can be precisely defined and when theAssignment is simple, can be precisely defined and when the
budget is fixed.budget is fixed.
• Request for proposals shall indicate the available budget.Request for proposals shall indicate the available budget.
ProposalsProposals
• Ranking shall be based only on evaluation of technicalRanking shall be based only on evaluation of technical
proposals of the qualified bidders.proposals of the qualified bidders.
ii)ii) Procedure.-Procedure.- Same procedure as for the Quality andSame procedure as for the Quality and
Cost Based methodCost Based method
• Request For Proposals shall indicate the available budgetRequest For Proposals shall indicate the available budget
including taxesincluding taxes

18. 18
• Applicants to provide, in separate envelopes, their bestApplicants to provide, in separate envelopes, their best
Technical and Financial Proposals withinTechnical and Financial Proposals within the budget;the budget;
• The terms of reference shall be as complete as possible to makeThe terms of reference shall be as complete as possible to make
sure that the budget is sufficientsure that the budget is sufficient
• The applicants may provide breakdowns of their costs for theThe applicants may provide breakdowns of their costs for the
different activitiesdifferent activities
• All proposals that exceed the indicated budget shall be rejectedAll proposals that exceed the indicated budget shall be rejected
and highest ranked technical proposal shall be selectedand highest ranked technical proposal shall be selected

19. 19
4.4. Criteria for Eligibility of Consultants.-Criteria for Eligibility of Consultants.-
- A consultant shall not be hire for an assignment inA consultant shall not be hire for an assignment in
which there is possibility of conflict of interest.which there is possibility of conflict of interest.
- If a consultant is providing goods or works for aIf a consultant is providing goods or works for a
project, it shall be disqualified from providingproject, it shall be disqualified from providing
consulting services for the same project.consulting services for the same project.
- A consultant shall not be hired for any assignmentA consultant shall not be hired for any assignment
which by its nature, may be in conflict with anotherwhich by its nature, may be in conflict with another
assignment of that consultant .assignment of that consultant .

20. 20
55.. Expression of Interest.-Expression of Interest.-
(1)(1) Response time as per Rule 13 of PP Rules, 2004.Response time as per Rule 13 of PP Rules, 2004.
(2)(2) It shall contain at least the followingIt shall contain at least the following information, :-information, :-
a)a) Name and address of procuring agency;Name and address of procuring agency;
b)b) An appropriate description of the assignmentAn appropriate description of the assignment
providingproviding
c)c) Deadline and place of the submissionDeadline and place of the submission
d)d) Evaluation criteria required to be followed.Evaluation criteria required to be followed.

21. 21

22. 22
6.6. Criteria for short-listing of Consultants.-Criteria for short-listing of Consultants.-
(1) Short-listing is carried out under a criteria.(1) Short-listing is carried out under a criteria.
• Minimum three consultants in the shortlist, but there is noMinimum three consultants in the shortlist, but there is no
upper limitupper limit
((22)) For short listing following factors will be considered :-For short listing following factors will be considered :-
i)i) Qualification;Qualification;
ii)ii) Experience; andExperience; and
iii)iii) Any other factors that a procuring agencyAny other factors that a procuring agency
may deem relevant.may deem relevant.
((33)) All applicants shall be informed whether or not they haveAll applicants shall be informed whether or not they have
been short listed.been short listed.

23. 23
77.. Criteria for prequalification of ConsultantsCriteria for prequalification of Consultants.- (1) In.- (1) In
complex assignments, prequalification of consultants will becomplex assignments, prequalification of consultants will be
carried-out.carried-out.
(2)(2) Following factors will be considered:-Following factors will be considered:-
i)i) Qualification;Qualification;
ii)ii) General experience;General experience;
iii)iii) Specific experience;Specific experience;
iv)iv) Past performance; andPast performance; and
v)v) Any other factor that a procuring agency mayAny other factor that a procuring agency may
deem relevant.deem relevant.

24. 24
8.8. Request for proposals.-Request for proposals.- (bidding documents)(bidding documents)
a)a) Letter of InvitationLetter of Invitation.-.-
Name andName and address of the procuring agencyaddress of the procuring agency
and state the intentionand state the intention
b)b) Instruction to ConsultantsInstruction to Consultants.-.-
All necessary information that would help themAll necessary information that would help them
prepare responsive proposalsprepare responsive proposals

25. 25
c) Terms of reference.-c) Terms of reference.-
- Clearly define the objectives, goals and scope of theClearly define the objectives, goals and scope of the
assignment besides conditions of contract.assignment besides conditions of contract.
- Mention the services and surveys necessary to carry outMention the services and surveys necessary to carry out
the assignment and expected outputs.the assignment and expected outputs.
d)d) Evaluation Criteria.-Evaluation Criteria.-
The evaluation of proposals shall be carried out givingThe evaluation of proposals shall be carried out giving duedue
consideration to quality and cost.consideration to quality and cost.

26. 26
e) Type of contract.-e) Type of contract.- Depending on the circumstances,Depending on the circumstances,
following types of contract will be used :-following types of contract will be used :-
ii)) Lump sum contract:Lump sum contract: For assignments in which theFor assignments in which the
content, duration of the services and the required output arecontent, duration of the services and the required output are
categorically defined;categorically defined;
ii)ii) Time based contract:Time based contract: When it is difficult to define theWhen it is difficult to define the
scope and the length of services;scope and the length of services;
iiiiii)) Hourly or daily rates:Hourly or daily rates: For small projects, especially whenFor small projects, especially when
the assignment is for less than a month; andthe assignment is for less than a month; and
iviv)) Any other contract:Any other contract: Based on combination of the aboveBased on combination of the above
and including out of pocket expenses, where required.and including out of pocket expenses, where required.

27. 27
f)f) Proposed contract formatProposed contract format.-.- A draft specimen contractA draft specimen contract
will be proposed with the successful bidder.will be proposed with the successful bidder.
g)g) Special Provisions.-Special Provisions.- Any other requirement related toAny other requirement related to
the assignment or contract etc. where required.the assignment or contract etc. where required.
(2)(2) -- Invite the prospective consultants to submit theirInvite the prospective consultants to submit their
technical and financial proposals in separatelytechnical and financial proposals in separately sealedsealed
envelopes.envelopes.
-- Consultants shall be given adequate time to prepare theirConsultants shall be given adequate time to prepare their
proposalsproposals

28. 28
9.9. Selection Committee.-Selection Committee.- (1)(1) Committee shallCommittee shall
comprise of at least three competent relevantcomprise of at least three competent relevant
• In case of non-availability of in-house expertise the procuringIn case of non-availability of in-house expertise the procuring
agency may engage outside appropriate sources.agency may engage outside appropriate sources.
(2)(2) The Committee shall advise on short listing andThe Committee shall advise on short listing and
prequalification of consultants.prequalification of consultants.
(3)(3) the Committee shall evaluate the request for proposals inthe Committee shall evaluate the request for proposals in
accordance with clause (b) of Rule-36 of the PP Rules, 2004.accordance with clause (b) of Rule-36 of the PP Rules, 2004.
(4)(4) The bidder whose technical and financial proposal is theThe bidder whose technical and financial proposal is the
most advantageous shall be ranked highest and his bid shall bemost advantageous shall be ranked highest and his bid shall be
accepted:accepted:

29. 29
10. Extent of Negotiations or discussions10. Extent of Negotiations or discussions.- The Committee may.- The Committee may
negotiate with the highest ranked bidder regarding methodology,negotiate with the highest ranked bidder regarding methodology,
work plan, staffing and special conditions of the contract.work plan, staffing and special conditions of the contract.
- The Committee shall not permit substitution of key staff, unlessThe Committee shall not permit substitution of key staff, unless
both parties agreeboth parties agree
- In case of failure of negotiations, the Committee may invite the nextIn case of failure of negotiations, the Committee may invite the next
ranked bidder for such negotiations or discussions.ranked bidder for such negotiations or discussions.
- Negotiations are to be carried out by the committeeNegotiations are to be carried out by the committee
- Negotiations by a single person Committee shall never be allowed:Negotiations by a single person Committee shall never be allowed:

30. 30
ProvisoProviso
Provided that negotiations shall not seek changes in theProvided that negotiations shall not seek changes in the
rates quoted by the bidderrates quoted by the bidder
11.11. Professional liability of consultantsProfessional liability of consultants.-.-
• Consultant shall be liable for consequence of errors orConsultant shall be liable for consequence of errors or
omissions on its part.omissions on its part.
• LiabilityLiability of the consultant should beof the consultant should be incorporated in theincorporated in the
contractcontract
• Demand insurance on part of the consultant to cover itsDemand insurance on part of the consultant to cover its
liability under sub-regulationliability under sub-regulation

31. 31
((33)) Held liable for all losses or damages suffered on accountHeld liable for all losses or damages suffered on account
of any misconduct and unsatisfactory performanceof any misconduct and unsatisfactory performance
1212.. InconsistencyInconsistency

32. 32
QUESTIONSQUESTIONS
• Difference between Public Procurement Rules, 2004 andDifference between Public Procurement Rules, 2004 and
Procurement of Consultancy Services Regulations, 2010Procurement of Consultancy Services Regulations, 2010
• Why Consultant is hired?Why Consultant is hired?
• Whether hiring of Consultant is necessary?Whether hiring of Consultant is necessary?
• Whether Consultant can perform only one job at a time?Whether Consultant can perform only one job at a time?
• How Consultant can be controlled?How Consultant can be controlled?

33. 33
THANKSTHANKS