PPRA Rules

1-Oct-19 Dr. Mahmood Ul Hassan 1

Dr. Mahmood Ul Hassan
PPRA Rules
Compiled by:
Associate Professor of Chemistry
Govt. S.E College, Bahawalpur
21-Oct-19 Dr. Mahmood Ul Hassan

Purchase
To get something by paying price
1-Oct-19 3

Purchase without planning, why?
Influenced by friends
Influenced by relatives
Influenced by Fashion
Craze of sale
Sale and Bargain items
Addictions and Habits
Consequences………….

Procurement?
• To have Military supplies by the Government
• To get supplies using Government Funds
• Public money is involved

The Punjab procurement regulatory authority having been constituted under an act
Duly passed by the Provincial assembly and notified in the extra ordinary Gazette
Vide No.PAP-LEGIS-2(23)/2009/135 Dated 17.11.2009 (Prov)
PPRA
Public procurement regulatory authority

Board
(a) Chief Secretary to the Government; Chairperson
(b) Secretary to the Government, Finance Department; Member
(c) Secretary to the Government, Planning and Development Department; Member
(d) Secretary to the Government, Health Department; Member
(e) Secretary to the Government, Information Technology Department; Member
(f) Secretary to the Government, I & P Department Member
(g) Three Members of Provincial Assembly of the Punjab [including at least one
Members female member of the Assembly]nominated by the Government;
(h) Three Members from Chamber of Commerce and Industry [including at
least one female] nominated by the Government Members
(i) Managing Director Secretary/Member.

Functions and powers of the PPRA Authority
• improving governance
• management
• transparency
• accountability and
• quality of public procurement.
MOTHER IN LAW

“procuring agency” means:
(i) a department, attached department of the Government;
(ii)an autonomous body or a special institution of the Government;
(iii) a court or tribunal financed by the Provincial Consolidated
Fund;
(iv)Provincial Assembly of the Punjab;
(v) a local government;
(vi) a body corporate owned or controlled by the Government or a
local government; or
(vii) a private organization financed by the Government or a local
government where such finance is not less than five million rupees
and constitutes not less than fifty percent of the expenditure of the
organization in the financial year;]

Acquisition of goods
Acquisition of Services
Construction work
Public Procurement
1-Oct-19Dr. Mahmood Ul Hassan12

Principle
 Fair, in transparent manner
 Value for money
 Efficient and economical
1-Oct-19 Dr. Mahmood Ul Hassan13

Value for money?
• Quality
• Upgradability
• After sale service
• Ability to meet requirement
• Market comparable price

College Purchases

Procurement Steps
• Procurement planning
• Formulation of BID documents
• Prequalification
• BID evaluation
• Grievance redressal
• Contact award and Management

Procurement Planning
 Need assessment
 Allocation of Budget
 Release of Budget ( check Heads of Accounts)
 Market analysis
 Time lines
 Purchase committee
 Method of procurement

What does Bid means?
Bid means a Tender, an offer, in response to an invitation, by a
person, consultant, firm, company or an organization expressing his
or its willingness to undertake a specified task at prices.

Formulation of BID documents
 Specifications
 Generic name
 Model number X
 Trade name X
 Clear criteria
 Items, quantity/ Number by Secretary Purchase committee
 Place of delivery of purchase items
 Bid Security
 Advertisement in proper forum (Clear terms and conditions)

Budget (Available)


Upto 50000 Upto 100000 Upto 20 lac More than 20 lac
Single Quotation Letter to at least
three firms for
Quotations
PPRA website
PA website
One news paper
PPRA website
PA website
Three news
papers
Market analysis Market analysis Market analysis Market analysis
Financial rules Financial rules Financial rules Financial rules
IT (4.5%)
Services (10%)
Lowest
Questioner
Lowest Bidder Lowest Bidder
ST (17%, 1/5 DAO) IT & ST IT & ST IT & ST
PST if applicable PST if applicable PST if applicable PST if applicable

Prequalification
 Need
 Criteria
 Process
 Certification

Direct contracting
 Acquisition of Spare parts or supplement services form original
manufacturer
 Only one manufacturer
 Where change results in incompatibility
 In case of emergency
 When prices are fixed by the Govt

BID evaluation
 Purchase Committee
 Letter to Purchase Committee regarding bid opening meeting
 Opening of Technical BID (Sigs of all members of committee)
 Opening of Financial BID(Sigs of all members of committee)
 Comparison of rates of firms
 Announcement of Rates in the presence of Firm representatives

Bidding Procedure
Single stage two Envelope

Bidding Procedure
Two stage two envelopes

Grievances committee
• Independent
• Time line
• Fair

Efficient
Economical
Value for money
Letter to winner firm
Payment Schedule
On account Payment
Payment through cross cheque
Contact Award and Management

The
National Suppliers 15 days
International Suppliers 30 days
Response Time of Bidders

BID Security 5%
Performance security 10%
BID Validity 90 Days to a Financial year

Repeat order
Not exceed 15% of the original order

(1)A procuring agency may, for a specified period and in the prescribed
manner, debar a bidder or contractor from participating in any public
procurement process of the procuring agency, if the bidder or contractor
indulges in corrupt practice or any other prescribed practice.
(2) The Managing Director may, in the prescribed manner, debar a bidder
or contractor from participating in any public procurement process of all or
some of the procuring agencies for a specified period.
(3) Any person, aggrieved from a decision of a procuring agency, may
within prescribed period prefer a representation before the Managing
Director.
(4) A procuring agency or any other person, aggrieved from a decision of
the Managing Director, may within prescribed period prefer a
representation before the Chairperson whose decision on such
representation shall be final.]
Blacklisting

MCQs
1. The bids for procurement opportunities shall be submitted in a/an
_______ package or packages.
(A) open
(B) sealed
(C) transparent
(D) none of these
(B) sealed

2. Where the procuring agency require the bidders to furnish a bid
security, the bid security should not exceed _______ of the bid price.
(A) 5.0%
(B) 7.5%
(C) 10.0%
(D) 12.5%
5.0%

3. All bids shall be opened
(A) randomly
(B) privately
(C) secretly
(D) publicly
(D) publicly

4. The main open competitive bidding procedure is
(A)Single stage one envelope bidding
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure
(A)single stage one envelope bidding

Clarifications
1. Quotations are letters of enquiry.
a) True
b) False
The statement is true. Quotations are letters of enquiry in which an
organization or an individual asks another organization or individual to
quote its or his rates and terms of payment for the goods intended to be
purchased.

2. Where is the name of the company inviting mentioned in an invitation
of quotation?
a) Top left corner
b) Bottom left corner
c) Top right corner
d) Bottom right corner
The name of the company inviting is mentioned in the top right corner on
an invitation of quotation along with the address and date.

3. Where is the name of the company which is invited mentioned?
a) Top left corner
b) Top right corner
c) Bottom left corner
d) Bottom right corner
The name of the company which is invited is mentioned in the top left
corner in an invitation of quotation below the address of the inviting party.

4. Quotations are friendly letters.
a) True
b) False
The statement is false. Quotations are letters of enquiry and thus are
business letters. It is normal to invite quotations from a large number of
sellers.

5. A tender is advertised in ______
a) newspapers
b) business environment
c) domestic markets
d) sellers
There is a difference between quotations and tenders. A tender is
advertised in newspapers, magazines, etc..

6. Which of these is not mentioned in a tender?
a) Date
b) Notice number
c) Sign
d) Designation
A tender does not have the sign of the authority mentioned in it. It only
has the designation mentioned.

7. Which of these is mentioned in a tender?
a) Notice number
b) Signature
c) Address of the tenderer
d) Courteous leave-taking
In the top center, the name and address of the organization is mentioned
along with the tender notice number and the date.

DO you know?
A procuring agency in term of Rule 25(7) of PPRA Rules, 2014 can charge the
fee in view of the cost of printing and provision of documents. Any irrational /
excessive price fixing since can curtail competition, therefore must be
avoided.
How can a procuring agency determine the price of the bidding
documents?

If a bidder has submitted the photocopy of bidding documents though
he purchases the original documents, can he be disqualified from
participating in procurement process?
The bid presented on photocopy of bidding documents with original receipt
and signature is a valid document authorizing the bidder to participate in
competition. He cannot be disqualified on the aforementioned grounds.

How to compare the only one bid received by a procuring
agency?
Whenever a procuring agency is confronted with such a situation whereby the
rate quoted by the single bidder cannot be compared so as to declare it as the
lowest rate or otherwise it may make a prudent decision. While making a
decision, the following factors may be kept in view: The comparison of price of
the goods, works or services if procured during the current financial year.
•Market price of the goods works and services to be procured.
•In case abnormal Increase in prices is observed, the procuring agency may like
to re-advertise the procurement opportunity, if time permits.

Can procuring agency reject bids without assigning any
reason?
In terms of Rule 35(1) of the Punjab Procurement Rules 2014 the procuring agency may
reject all bids or proposals at any time prior to the acceptance of a bid or proposal. The
procuring agency shall immediately give notice of rejection of bid(s) to all bidders. On
request by the bidders, the Procuring Agency shall intimate the reasons of rejection of bids
but will incur no liability on this account nor is required to justify the rejection of bids.

How can procuring agency calculate response time?
The response time shall be calculated from the date of first publication of the
advertisement in newspaper or posting on the PPRA’s website. In case if the
advertisement is mandatory to advertise in both print and PPRA website in terms of
Rule 12 of Punjab Procurement Rules, 2014 the response time shall be calculated
from the day of last publication either in newspaper or PPRA website.

Is negotiation if allowed to be made with all the bidders or only with
the lowest evaluated bidders?
Negotiations are not allowed as provided under Rule 57 of Punjab
Procurement Rules, 2014.

What is mis-procurement?
Any violation of PPRA Rule 2014 shall amount to mis-procurement.

What course of action will be adopted by the procuring agency when
all the bids prices substantially exceed the cost estimated/market
value?
The procuring agency is allowed to cancel all the bids prior to acceptance as
provided under Rule-35 of the Punjab Procurement Rules, 2014 and invoke Rule
36 of the said Rules for re-bidding.

Thank you for
attention

PPRA Rules

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