2021-10-13 Procurement Process-Day 01.pptx

Procurement Process
Post-award or down-stream activities
Diploma in Procurement & Supply Chain Management
By Engr. Tahir Kamran 2

DEFINITIONS
 Project
Project must have a starting point and end point with
defined scope and cost.
 Program
A group of related projects intended to meet a common
objective and managed by one entity. It may include one or
several projects at various time, with specific objectives
linked to the achievement of higher level of common goals.
 Portfolio
A group of projects, not necessarily related or
dependent, usually under one project manager or
department.
3

PM TRIPLE CONSTRAINTS
“ Manage these or they will Manage You “ 5

CONSEQUENCES OF NOT USING PROPER
MANAGEMENT TECHNIQUES
 DELAY
 COST OVER RUN
 WASTE OF RESOURSES
 QUALITY
 DISSATISFACTION
 REPUTATION
6

“Legal framework”
 Khyber Pakhtunkhwa Public Procurement Regulatory
Authority Act-2012 to provide for the legal and regulatory
framework for public procurement.
 The government notified under the Act : “The Khyber
Pakhtunkhwa Public Procurement of Goods, Works and
Services Rules-2014”.
 Applicable to all public procurements.
7

 KPPRA Act 2012 (38 Sections)
 KPPRA Rules 2014 (5 Chapters) (55 Rules)
I. General Provisions (Rule 1 to 5)
II. Methods of Procurement of Goods (Rule 6 to 13)
III. Procurement of Works& Non-Consulting Services (Rule 14 to 21)
IV. Procurement of Consultancy Services (Rule 22 to 29)
V. Miscellaneous Provisions (Rule 30 to 55)
8
“Legal framework”

 Procurement :
The formal process of acquisition of goods, works, or
services.
 Public procurement : Sec (2)(1)(s)
means acquisition, temporary or permanent or on lease,
of goods or services, or undertaking of works by
contractual means, financed wholly or partly out of fund
by any procuring entity.
9
Definitions

 “Procuring Entity”
A department or any office of government including a
project unit; any Board, Commission, Council, semi-
autonomous or autonomous bodies which are owned or
controlled by Government.
 “Bid”
means a technical proposal or a financial proposal
or a technical and financial proposal submitted as a result
of request for quotations, tender notice, request for
proposal as the case may be; 10
Definitions

 “bidder”
means a contractor, supplier, vendor or consultant who
offers his services for procurement of goods, works, or services
in response to bid solicitation by a PE;
 “Contract’”
means a contract as defined in the Contract Act, 1872
“An agreement enforceable by law is a contract”
 “Contractor”
means a person, a firm, a company or an organization
undertaking supply of goods, works or non consulting services;
11

Activities prior to
Procurement Process
Procurement Process
Contract
Administration
Stage
1
Stage
2
Stage
3
22
Stages of Procurement

Activities prior to
Procurement Process
Constitution of
Procurement
Committee (32)
Preparation of
Procurement Plan
Preparation of
SBD/PQ Document
Preparation of
NIT/Pre-
Qualification/EOI
Notice
Ensure following:
i. AA is issued;
ii. Specifications are
formulated;
iii. Funds are
released or in pipe
line.
Stage
1
Composition of
Procurement Committee
Representative from
Finance and Planning
section of the PE apart
from others
Technical person from
line department or
Can hire from market
23

Rule 19
Notification & Advertisement
>100,000 to ≤ 2,500,000 PE and KPPRA Website
>2500,000 PE and KPPRA Website + 2 widely circulated dailies (E-U)
Rule 18,
Procurement Methods
≤ 50,000 - Petty Purchases - Single Quotation
>50,000 to ≤ 100,000 - Three Quotations
None
Direct Contracting, Repeat Order
METHODS OF ADVERTISEMENT
24

STANDARDIZED PROCUREMENT CYCLE
Procurement
Planning
(S.22,R.30)
Constitution of
Procurement
Committee (R.32)
Developing
SBDs (R.33)
Enlistment /
Prequalification
(R.32-A)
Solicitation
of Bids
(S.24 & 25)
Bids Opening and
Evaluation (R.37,38
&39)
Announcement
(R.45)
Grievances
(S.35)
Contract
Administration
(R.50 & 51)
25

 Each PE shall plan its procurements with due
consideration to transparency, economy, efficiency &
timelines, and shall ensure equal opportunities to all
prospective bidders.
 All procurement requirements must be documented and
approved by the PE prior to commencement of
procurement proceedings.
 Proposed Plan shall be announced on Authority and PE
website before 31st July each year and shall proceed
accordingly.
19

PROCUREMENT COMMITTEE (S.34 & R.32)
 Each PE shall constitute committees, in accordance
with delegation of financial powers, separately for
procurement of goods, works and services.
 The committees shall have a representative each
from the accounts or finance or planning sections of
the PE apart from others
 A technical member shall be inducted from the
relevant line department of Government or hired in all
procurements or in exceptional cases, provided that
procurement is technical and complex in nature.
20

PROCUREMENT COMMITTEE (S.34 & R.32)
 TORs of Procurement Committee:
• To approve the NIT & Standard Bidding
Documents (SBDs) containing Technical specs as
well as Evaluation criteria
• To open & evaluate the bids so received as per
approved method of procurement.
• To approve the Bid Evaluation Report after
calculating the technical and financial scores and
determine the successful bidder.
• To recommend the successful bidders for award of
contract/purchase order/work order.
• comprise of odd number of members and all
decisions shall be made by simple majority,
however, consent of the technical member, shall
be mandatory.
21

PREPARATION OF SBDs
 The Section 23 (1) of the Act is reproduced as under:
“A procuring entity shall adopt standard bidding
documents designed under this Act and insert/add
specifications into the standard bidding documents for
each procurement”.
A well prepared bidding document will result in a
successful procurement process and thus drafting
SBDs is the most crucial part of procurement process.
It is the process of future forecasting and proper input
should be required while preparing the documents.
22

COMPONENTS OF SBDs
 Standard Bidding Documents (SBDs) are comprised of
two parts wherein Part One is fixed/unchangeable and
Part Two consist of procurement specific conditions.
These are grouped as under:
 Part One:
a. Instruction to the Bidders
b. General Conditions of the Contract (GCC)
 Part Two:
a. Invitation for Bids (IFB)
b. Bid Data Sheet (BDS)
c. Special Conditions of the Contract (SCC)
d. Schedule of Requirement (SOR)
e. Evaluation Criteria
23

 An evaluation criterion is the bloodstream of any
procurement process. Section 28 (d) & (f) of KPPRA Act
2012 makes it a mandatory part of the selection and
award process in public procurement.
 Section 28 are reproduced as under:
 All bid solicitation documents shall fully and
comprehensively detail the evaluation methodology and
criteria relevant to the particular procurement.
 No evaluation criteria other than those stipulated in the
solicitation documents shall be taken into account.
 A bid once opened as per prescribed procedure shall be
subject to only those rules, regulations and policies that
are in force at the time of issuance of NIT/IFB. (R-39).
Developing Bid Evaluation Criteria
24

Procedures of Open Competitive Bidding for Works
& Non-Consulting Services (R-14)
Single stage-Single
envelope
single envelope
containing technical &
financial bid
All bids received shall be
opened & evaluated as
mentioned in BD
Lowest evaluated bid will
be accepted
Single stage –
Two envelope
apply to large and complex
contracts; bidders be
prequalified
Technical & financial
proposal in separate
envelopes
Technical proposal shall be
evaluated and financial bids
of responsive bidders will
be opened only
lowest evaluated
responsive bid will be
accepted
Two stage – Two envelope
used for turnkey or large or
complex contracts
First stage: technical and
financial proposal in
separate envelopes
technical proposal shall be
opened & discussed with
bidders
Second stage :Revised
technical & supplementary
financial proposal will be
submitted & lowest bid will
be accepted 26

Pre-qualification Process (Rule 16)
 legal status
 Valid registration with
PEC & concerned
department;
 being a taxpayer
 organizational profile,
relevant experience,
past performance,
 technical personnel,
equipment, plant &
machinery
 last three years bank
statements & Audited
reports etc.
PE may engage in
prequalification
process When
Procurement
irrespective of its
worth is complex.
bidders shall be pre-
qualified by soliciting
various details
including but not
limited to the
following providing
pass/fail thresholds,
Bidding shall be
limited to pre-qualified
firms.
Qualified bidders
shall be issued the
tender documents.
27

Open tendering Post qualification Process (R- 17)
PE may choose to call for bids
with the condition of post-
qualification provided in the
Bidding documents
based on the evaluation of
technical and financial worth
i.e.
i. works executed, indicating
value of works,
ii. list of technical and other
staff,
iii. plant / equipment details
&
iv. financial capacity.
Bidding documents
shall be made
available to all
interested bidders
The qualification of the
lowest evaluated
responsive bidders
shall be checked to
ensure whether or not
the bidder is qualified
to perform the works.
If the lowest evaluated responsive bidder is not found to
be qualified on all the post-qualification criteria provided
in the bidding documents, its bid shall be rejected.
Credentials of the next lowest
evaluated responsive bidders
shall then be checked against
all of the post-qualification
criteria provided in the bidding
documents, and the contract
shall be awarded to the lowest
evaluated responsive qualified
bidder`
28

Post bid negotiation:(R.42)
 Procuring entity may negotiate with the highest ranked bidder
regarding methodology, work plan, staffing and special conditions
of the contract.
 In case of consulting services the procuring agency shall not permit
substitution of key staff, unless both parties agree that undue delay
in selection process makes such substitution unavoidable.
 Similarly, negotiations shall not seek changes in the rates quoted by
the bidder.
 In case of failure of negotiations, the procuring agency may invite
the second ranked bidder as per the evaluation report. 35

Announcement of Bid Evaluation Report:(R.45)
 Procuring entities shall announce the results of technical
bid evaluation in the form of a report before opening of the
financial bids, to all bidders.
 Procuring entity shall also announce the final results of a
bid evaluation giving justification for acceptance or
rejection of bids at least ten days prior to the award of a
contract and place the same on its and Authority website.
36

Announcement of Bid Evaluation Report:(R.45)
 In case any objection is received within due time for
complaints, the same is resolved under the rules. Once
objections are over, Letter of Acceptance (LOA) is issued to
successful bidder with the advice to submit performance
security mentioned in the bidding documents, which should
not be more than a maximum of 10% of the contract value.
 Contract is negotiated and agreement between the parties
is signed.
37

Approval of Contract award (R.46)
 The approving authority in accordance with the delegation
of powers under the financial rules and the power of re-
appropriation rules 2001 shall approve successful bid.
 PE shall provide the contract form or agreement, which
contains GCC & SCC.
 The contract shall also include the description of
works/services, specifications, TORs, drawings, BOQs,
activity schedule and/or any other similar document,
currency, total cost of the contract and payment schedule
etc.
 All contract awards shall be made public through
publication on Authority website. 38

Why do we need a contract... don't we trust?
40

Why do we need a contract?
• Contracts provide a description of
responsibilities.
• Contracts bind parties to their duties.
• Contracts can establish a timeframe for duties.
• Contracts can secure payment.
• Contracts provide recourse when the
relationship weakens.
40

Contract v/s Trust
• Ensuring a well drawn contract is in place does
NOT create mistrust nor does it have to be
expensive, time consuming or complicated.
• Simply, it is the basis for TRUST: if all the
terms are written down in one place, there is
little room for misinterpretation.
31

Construction is all about contracts
• The contract is the single most important
part of a construction project. It spells
out in detail all the possible scenarios
that may be encountered on a project.
• The contract defines the responsibilities
for each participant and the rights and
obligations associated with the parties.
32

Construction is all about contracts
• It comes as no surprise that when there is a
problem, everybody refers to the contract to
see how to handle it. While everybody wants
a fair or concise contract, this does not always
happen.
33

Significance of a Written Contract
• A written contract usually supersedes all
previous agreements.
• A complete understanding of all the contract
conditions by both parties is essential.
• Once a written, signed contract is finalized the
law will attach full significance to it.
• The law requires that the contract must be
observed or the party breaching the contract
must pay any damages to other party.
34

Concepts of Contract Law
 It is important to understand that contract law differs from other
branches of law in most jurisdictions.
 Common Law generally establishes the rights and duties that the
law will enforce; however, Contract law regulates the relationships
between people who have agreed to do something mutually
beneficial.
 When disputes arise with contractual agreements, a court of law
will refer to any contract and associated documentation to
determine rights and/or obligations of any of the parties to a
contract.

Breach of Contract
 A breach of contract is a failure to fulfill the duties under
the contract terms. A contract can be breached in the
following ways:
− One party does not perform as he or she promised
− One party does something that makes it impossible for
the other party to perform the duties under the
contract
− One party makes it clear that he or she does not
intend to perform the contract duties

Contract Management
 Contract management is the process that enables parties
to a contract to meet their obligations in order to deliver
the objectives required from the contract.
 It also involves building a good working relationship
between the parties.
 It continues throughout the life of a contract and involves
managing proactively to anticipate future needs as well as
reacting to situations that arise.

Contract Management
 The central aim of contract management is to obtain the
services as agreed in the contract and achieve value for
money.
This means
− optimizing the efficiency, effectiveness and economy of
the service or relationship described by the contract,
− balancing costs against risks and actively managing the
relationship between the parties.
 Contract management also involve aiming for continuous
improvement in performance over the life of the contract.

What are Contract Management
Functions?

Contract
Management
Functions
Service delivery
management
Relationship
Management
Contract
Administration
All three areas must be managed successfully if the arrangement
is to be a success.

Essentials
for
Good Contract Management

Essentials for good contract management
 Good preparation
An accurate assessment of needs helps create a clear
output-based specification. Effective evaluation
procedures and selection will ensure that the contract is
awarded to the right provider.
 Getting the right contract
The contract is the foundation for the relationship. It
should include aspects such as allocation of risk and
quality required as well as procedures for communication
and dispute resolution.

 People, skills and continuity
There must be people with the right management skills to manage
these relationships and at multiple levels in the organization. Clear
roles and responsibilities should be defined, and continuity of key
staff should be ensured as far as possible. A contract manager (or
contract management team) should be designated early on in the
procurement process.
 Proactivity
Good contract management is not reactive, but aims to anticipate
and respond to future needs.

 Service delivery management and contract administration
Effective governance will ensure that the customer gets what is
agreed, to the level of quality required. The performance under the
contract must be monitored to ensure smooth running of the
project.
 Relationship management
Mutual trust and understanding, openness, and excellent
communications are as important to the success of an arrangement
as the fulfilment of the formal contract terms and conditions.

 Knowledge
Those involved in managing the contract must understand the
project fully and know the contract documentation inside out. This
is essential if they are to understand the implications of problems
(or opportunities) over the life of the contract.
 Flexibility
Management of contracts usually requires some flexibility on both
sides and problems are bound to arise that could not be foreseen
when the contract was awarded.

Fundamentals of Contract
Administration
• A client or a contractor will want the contract
to be evidenced by a more formal document
signed by both parties. Such a document is
called a ‘formal instrument of agreement’.
• The contractor would have a right to be paid a
reasonable price for all work done.
• The success of contract administration
depends on an effective communication
between all the parties involved.
50

Order of Precedence - Documents
a) The contract agreement and
the Appendices
b) Notification of Award/ Letter
of Acceptance
c) Power of Attorney to sign the
Contract Documents
d) Letter of Price Bid and Price
Schedules submitted by the
Contractor
e) Letter of Technical and
Technical Proposal submitted
by the Contractor
f) Post Bid Correspondence and
Minutes of Meetings
g) Addenda and Bid
Clarifications
h) Special Conditions of
Contract
i) General Conditions of
Contract
j) Technical Specifications,
Technical Data Sheets and
Drawings
k) Other Completed Bidding
Forms
l) Any other documents part of
the Employer’s requirements
m) Any other document shall be
added here
51

Administration for Principals
• to appoint suitable consultants
• to define project scope
• to set the key project
objectives of cost, time and
quality
• to assist in formulating a
project brief
• to select the most appropriate
method of project delivery
• to ensure accuracy and
completeness of tender
documentation
• to avoid making changes to
the design
• to pay the contractor strictly in
accordance with the contract
• to resolve issues as early as
possible
• To be able to defend against a
potential claim from the
contractor
• to award a contract to the
contractor on fair and
equitable conditions of
contract
52

Administration for Contractors
• to execute the project
strictly in accordance with
the contract conditions
• to award subcontracts on
fair and equitable
subcontract conditions
• to monitor and control
progress of subcontractors
• to minimize overall project
time, thus reducing site
overheads
• to allow sufficient time to
rearrange activities, acquire
additional resources
• to document the actual
progress compared with a
program to identify areas of
progress loss
• to take immediate action on
contractor-caused problems
and immediately advise the
client of other problems
• to manage extensions of
time and a prolongation of
overhead costs
53

Bilateral vs Unilateral contracts
• A bilateral contract is a promise for a promise;
if the offeree need only promise to perform,
the contract is bilateral
• A unilateral contract is a promise for an act; if
the offeree can accept only by complete
performance, the contract is unilateral
54

Contracts on the basis of formation
Express Contracts
• Contracts formed with the
words spoken or written, is
an express contract
Example
• A tells B on phone that he
wants to buy his car for PKR
1.0 million and B accepts
the offer on his phone, this
is an express contract
Implied Contracts:
• When the offer and
acceptance is made by acts
or conducts of the parties, it
is an implied contract
Example
• A coolie in uniform takes up
the luggage of B at railway
station and B allows him to
do so, then the law implies
that B will have to pay for
the services of A. This is an
implied contract.
55

Formal Contract
A formal contract is a
contract where the parties
have signed under seal,
while an informal contract is
one not under seal. A seal
can be any impression made
upon the document by the
parties to the contract.
Usually the contract is
formed by a greater
authority, such a
government, or corporation
Informal Contracts
An informal business
contract is an agreement
between two parties that
has the intent of a formal
contract without the seal of
a government agency or
witness. In other words, its a
mutually agreed upon
decision between two
parties not formally
documented by an agency
or witness
56

Valid Contract
An agreement enforceable by law when all the essential
features of a valid contract are present
Voidable Contract
A contract becomes voidable when the consent of one of
the parties to the contract is not free
Example
• A threatens to shoot B if he does not sell his bike to A. B agrees.
This contract is voidable at the option of B
Void Contract
A void contract is a contract that has no legal effect at all.
• “A contract which ceases to be enforceable by law becomes void.”
57

Executed Contract
– A contract is said to be executed contract when both the parties to a contract
have performed their obligations
– Example
• When a bookseller sells a book on cash payment, it is an executed
contract because both the parties have done what they were supposed to
do in a contract
Executory Contract
– When either both the parties to a contract have still to perform their
share of obligation, then it is executory contract.
– Example
• A buys a car from B for PKR 1.0 million. Now, A has made the
payment but B has not transferred the contract, it is an executory
contract as the parties have to meet the obligation
58

Attributes of a good construction
contract
1. Is there such a thing as
a “good” construction
contract?
2. Can a “good” contract
increase the likelihood
of project success?
3. What are the
attributes of a “good”
construction contract?
59

contract
• The answers to the first
two questions are “YES”!
• A fitting analogy is that a
“good” construction
contract is like a well-
constructed ship—it will get
you safely through rough
water.
• Conversely, a “bad”
construction contract is
analogous to a poorly
constructed ship—in rough
water, it is likely to capsize,
resulting in disaster.
60

contract
• Project Delivery: Many delivery systems are available
to the parties (EPC, D/B, Cost Plus, Reimbursable, etc.).
Great care must be taken to select the project delivery
system that is best designed to meet the parties’ and
the project’s expressed needs.
• Well Integrated: Taking shortcuts to save time and/or
money should be avoided. It is an investment that will
pay big dividends later if problems or disputes arise.
• Language: The clauses and provisions should be
written in language that can be easily understood by
someone unfamiliar with the project (such as an
arbitrator or judge).
61

contract
• Mechanically sound: All of the provisions, clauses,
definitions and terms should be consistent throughout
the document.
• Scope of the work: The description of the scope of
work be as fully developed as possible so that
opportunities for differing interpretations and costly
disputes over contract details are avoided.
• Potential Problems: A good contract should consider
and address the many obstacles that may arise
throughout the project and clearly define the method
by which problems will be resolved.
62

contract
• Risk Allocation: It fairly allocates risk to the party
who is best positioned to anticipate and control
it.
• Dispute Resolution: Considerations must include
choice of law, choice of venue, choice of language
(for international contracts), whether the dispute
will be subject to litigation or arbitration, and
which party gets to choose the forum.
• Followed at Project Level: The ultimate value of a
good construction contract lies in how well it is
understood and followed by the project teams.
63

If you do not Know where
you are going, you will end
up in doing something else
64

Systems for selection of Consultants (R-23)
 Procuring entity may utilize one of the following systems
for selection of consultants, namely:
 Quality Based Selection (QBS)
 Quality & Cost Based Selection (QCBS)
 Least Cost Selection (LCS)
 Fixed Budget Selection (FBS)
 Single Source Selection (SSS)

Systems for selection of Consultants: (Rule 23)
(1) QBS : This system will be used for
highly specialized & complex
assignments, where quality is the only
factor taken into consideration;
(2) QCBS: This system will be used
where high quality is the prime
consideration while cost is a secondary
consideration;
(3) LCS: This system will only be used
for assignments of standard or routine
nature, where well established
practices and standards exist;
(4) SSS /Direct Selection:
Subject to approval by Head of the
Procuring Entity,
(i)In cases of emergency;
(ii) For very small assignments valuing up
to Rs. 500,000/-;
(iii) where only one Consultant is qualified
or has experience of exceptional worth;
(5) FBS: This system shall be used only
when the assignment is simple, can be
precisely defined and when the budget is
fixed.
43

Expression of interest (EOI): R.25
The expression of interest shall contain at least the following
information:
 the name and address of procuring entity;
 an appropriate description of the assignment providing
scope of the intellectual and professional services
required;
 deadline and place of the submission of EOI;
 criteria for short-listing where required.
44

Criteria for short-listing of consultants:(R.26)
The procuring entity while short-listing consultants may take
the following factors into consideration, namely:
(a) qualification;
(b) general experience; or
(c) specific experience, particularly of the last five
years; or
(d) any other factor that a procuring entity may
deem relevant, not inconsistent with these
rules.
45

Request for proposals (RFP):R.27
which shall include the following, namely:
(a) letter of invitation (LOI): letter of invitation shall mention
the name and address of the procuring entity and shall state
the intention of the procuring entity to enter into a contract for
provision of consulting services;
(b)Instruction to consultants: instructions to consultants shall
contain all necessary information that would help them
prepare responsive proposals and shall bring as much
transparency as possible to the selection system;
(c)terms of reference (TOR):shall unambiguously define the
objectives and scope of the assignment and expected
outputs. It shall also include the evaluation criteria.
(d)evaluation criteria: except as otherwise provided, the
evaluation of proposals shall be carried out giving due
consideration to quality and cost; 46

Request for proposals (RFP):R.27
(e)type of contract: the procuring entity, depending on the
circumstances, may use one of the following types of
contract, namely:
 lump sum contract will be used mainly for assignments in
which the content, duration of the services and the required
output are unambiguously defined;
 Time based contract will be used when it is difficult to define
the scope and the length of services;
 Hourly or daily rates will be used for small projects, especially
when the assignment is for less than a month; and
 special provisions: the procuring entity may specify any other
requirement related to the assignment or contract etc, where
required.
47

Procurement Process Flow Chart
Selection Process
Preparation & Approval
of EOI Notice from
Competent Authority by
PE
Publication/ Hoisting
Shortlisting as
per criteria
Signing
Contract
Agreement
Issuance of Bidding
Documents
Publication of
Contract
Award
Issuance of
Letter of
Acceptance
Issue RFP to
Shortlisted
Consultants
Opening,
Evaluation
of Bids &
Preparing
BER
Hoisting of
Bid
Evaluation
Report
(BER)
Submission of
Performance
Guarantee
48

Q & A Session
 Is it essential that the Tender in Newspaper and on Web site
should be displayed on the same date?
 Not necessarily.
 What is the minimum response time for procurement
advertisements?
 The minimum response time shall not be less than fifteen (15)
days for NCB and thirty (30) days for ICB.
 How can procuring agency calculate response time?
 Calculated from the date of first publication of the
advertisement in newspaper or posting on the KPPRA’s website.
In case if the advertisement is mandatory to advertise in both
print and KPPRA website it shall be calculated from the day of
last publication either in newspaper or KPPRA website. 49

Q & A Session
 When the Bid must be opened?
 The date of opening of bids and the last date for the submission
of bids shall be the same. The bids shall be opened at least thirty
minutes after the deadline for submission of bids in the presence
of bidders .
 Can procuring agency reject bids without assigning any reason?
 The procuring agency may reject all bids or proposals at any
time prior to the acceptance of a bid or proposal. On request by
the bidders, the Procuring Agency shall intimate the reasons of
rejection of bids.
 How PE can deal when all the bids prices substantially exceed
the cost estimated/market value?
 The PE is allowed to cancel all the bids prior to acceptance. 50

Q & A Session
 Whether the procuring agency can enter into negotiations with
the bidders for the reduction in the prices?
 Negotiations are not allowed.
 What is mis-procurement?
 Any violation of KPPRA Rule 2014 shall amount to mis-
procurement.
 If a bidder has not submitted the required document with the
technical bid as per evaluation criteria, and later submitted after
closing time, can it be considered as a responsive bidder?
 To be considered as non-responsive bidder. The procuring
agency shall not open the financial bid to non-responsive bidder.
51

NIT (Defective)
 The Employer invites sealed bids as per Single Stage Two
Envelope procedure from eligible firms licensed by PEC in the
Category C-3 & above.
 Bidders may obtain further information from, inspect at, and
acquire the Bidding Documents from the Office of the PMU, at
43-B/1, Sahibzada Abdul Qayyum Road, University Town
Peshawar (Tel No. 091-5850523).
52

NIT (Rectified)
 Bidding is open to all the eligible Bidders.
 The Employer invites sealed bids as per Single Stage Two
Envelope procedure from eligible firms licensed by PEC in the
Category C-3 & above.
 Bidders may obtain further information from, inspect at, and
acquire the Bidding Documents from the Office of the PMU, at
43-B/1, Sahibzada Abdul Qayyum Road, University Town
Peshawar (Tel No. 091-5850523).
53

NIT(Defective)
 A complete set of Bidding Documents may be purchased by an
interested bidder on submission of a written application to the
above office and upon payment of a non- refundable fee.
 Pre-Bid Meeting on August10,2018 at the above address to
clarify issues related to the Bidding Documents.
 All bids must be accompanied by a Bid Security in the form of
Pay Order or Bank Draft lump sum amount of Rs 2,000,000/-
(Rupees Two Million only) at or before 1400 hours, on August
20,2018. Bids will be opened at 1400 hours on the same day, in
the presence of bidder’s representatives who choose to attend at
the same address.
54

NIT(Rectified)
 A complete set of Bidding Documents may be purchased by an
interested bidder on submission of a written application to the
above office and upon payment of a non- refundable fee of Rs.
5,000/- (Rupees Five Thousand only).
 Pre-Bid Meeting on August10,2018 at 1000 hours at the above
address to clarify issues related to the Bidding Documents.
 All bids must be accompanied by a Bid Security in the form of
Pay Order or Bank Draft in favour of Employer for the lump
sum amount of Rs 2,000,000/- (Rupees Two Million only) and
must be delivered to 43-B/1, Sahibzada Abdul Qayyum Road,
University Town Peshawar (Tel 091-5850523) at or before 1400
hours, on August 20,2018. Bids will be opened at 1430 hours on
the same day, in the presence of bidder’s representatives who
choose to attend at the same address. 55

2021-10-13 Procurement Process-Day 01.pptx

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