Presentation on PP Rules,2004 (Final)08-02-19.pptx

 Prior to PPRA regime, Public Procurements were governed by B&R Code,
GFR and Purchase Manual
 The United Nations Commission on International Trade
Law (UNCITRAL) was established by the United Nations General
Assembly by its Resolution 2205 (XXI) of 17 December 1966 "to promote
the progressive harmonization and unification of international trade law".
 When world trade began to expand dramatically in the 1960s, national
governments began to realize the need for a global set of standards and rules
to harmonize national and regional regulations, which until then governed
international trade
5

• UNCITRAL's original membership comprised 29 states, and was expanded to
36 in 1973, and again to 60 in 2004. Pakistan is one of them.
• A model law is a legislative text that is recommended to states for enactment
as part of their national law.
• UNCITRAL Model Law on Procurement of Goods, Construction and
Services (1994)
 GoP signed Paris Declaration requiring harmonization of procurement laws
 With the support and encouragement of development partners;
 PPRA Ordinance promulgated by Federal Govt. in 2002
 PPRA Rules introduced by the Federal Govt. in 2004
6

 These rules shall apply to all procurements made by all procuring
agencies of the Federal Government whether within or outside
Pakistan.
 Whenever these rules are in conflict with an obligation or
commitment of the Federal Government arising out of an
international treaty or an agreement with a State or States, or any
international financial institution the provisions of such
international treaty or agreement shall prevail to the extent of such
conflict.
 Subject to clearance from Economic Coordination Committee (ECC)
7

8
 Public procurement expenditure accounts for 45 to 65 percent of a national
budget, often equating to at least 15-20 percent of a country’s gross domestic
product (OECD estimates).
Public Procurement as part of total Public Expenditure
S. No. Country
Approx. share in
Public expenditures
1 Pakistan (www.cpdi-pakistan.org) 45% to 65%
2 Italy, Belgium, Norway, Switzerland & France 20% to 25%
3 United States 27%
4 United Kingdom 30%
5 Australia, Japan, Canada & Germany 32% to 36%
6 Korea 40%
7 Netherlands 45%
Source: GOVERNMENT AT A GLANCE 2017 © OECD

10
• “Public procurement” means acquisition of goods, services
or works financed wholly or partly out of the Public Fund,
unless excluded otherwise by the Federal Government.

11
 “Goods” means articles and objects of every
kind and description including raw materials,
products, equipment, machinery, spares and
commodities in any form and includes services
incidental to installation, transport, maintenance
and similar obligations related to the supply of
goods if the value of these services does not
exceed the value of such goods;

12
“Works” means any construction work
consisting of erection, assembly, repair,
renovation, or demolition of a building or
structure or part thereof, such as site
preparation, excavation, installation of
equipment or materials and decoration,
finishing and includes incidental services
such as drilling, mapping, satellite
photography, seismic investigations and
similar activities, if the value of those
services does not exceeds that of the works
themselves;

13
Service means any object of procurement other than goods or
works.

“Bid” means a tender, or an offer, in response to an invitation, by
a person, consultant, firm, company or an organization expressing
one’s willingness to undertake a specified task at a price,
OR
“Bid” means a technical proposal or a financial proposal
submitted as a result of request of quotations, tender notice,
request for proposal, as the case may be;
14

15
“Lowest Evaluated Bid” means:
i) a bid most closely conforming to evaluation criteria and
other conditions specified in the bidding documents and
ii) having the lowest cost
“Emergency” means natural calamities, disasters, accidents,
war and operational emergency which may give rise to abnormal
situation requiring prompt and immediate action to limit or avoid
damage to person, property or the environment;

17
Efficient & Economical
Process:
Fair & Transparent
Conduct:
Objective: Value for Money

 “value for money” means best returns for
each rupee spent in terms of quality,
timeliness, reliability, after sales service,
upgradeability, price, source, and the
combination of whole-life cost and quality to
meet the procuring agency's requirements.
18

 There are three laser jet printers on offer, all of which
provide the same technical output in terms of pages per
minute:
 Printer A has the lowest price, but does it offer value-
for-money?
 That depends on use.
Printer Cost of Printer Cost of Toner Life of Toner
Printer A Rs.5,000 Rs.1,750 8,000 pages
Printer B Rs.6,000 Rs.1,900 10,000 pages
Printer C Rs.7,500 Rs.1,400 8,000 pages

Task:
Calculate the real cost of the printers for 24-month
period if:
1. The office produces 10,000 pages for occasional
letters and occasional reports, every six months; OR
2. The office produces 30,000 pages for generating
weekly reports of the activities, every six months.
Total time: 10 minutes

Scenario - 1
 Calculation
 Printer A: = Rs 5,000 + Rs 8,750 (5 toners X Rs 1,750) = Rs 13,750
 Printer B: = Rs 6,000 + Rs 7,600 (4 toners X Rs 1,900) = Rs 13,600
 Printer C: = Rs 7,500 + Rs 7,000 (5 toners X Rs 1,400) = Rs 14,500
 Printer B probably offers the best value-for-money.
21

Scenario - 2
 Calculation
 Printer A: = Rs 5,000 + Rs 26,250 (15 toners X Rs 1,750) = Rs 31,250
 Printer B: = Rs 6,000 + Rs 22,800 (12 toners X Rs 1,900) = Rs 28,800
 Printer C: = Rs 7,500 + Rs 21,000 (15 toners X Rs 1,400) = Rs 28,500
 For this office, printer C, with the highest initial cost, is beginning to look
like the best value-for-money.
 If these printers are in use for many years and if the office purchases several
printers, then the savings to be made from buying the more expensive printers
become significant.
22

Procurement Planning (Rule-8): all procuring agencies shall
devise a mechanism, for planning in detail for all proposed
procurements with the object of realistically determining the
requirements of the procuring agency, within its available
resources, delivery time or completion date and benefits that are
likely to accrue to the procuring agency in future.
24

1 2 3 4 5 6 7 8
S. # Name of
Procurement
(Description)
Estimated
Cost
Procurement
Method**
Tentative
date of
Procurement
Notice
Publication
Tentative
Date of
Award of
Contract
Tentative
Date of
Completi
on
Remarks
(If any)
25
*Annual Procurement Plan may be prepared on assumptions that total allocated budget will be released.
**Procurement Method means Open Competitive Bidding/ Petty Purchases / Quotations / Direct Contracting /
Negotiated Tendering.
(Please add additional sheet if required)

Sr.
No.
Descriptio
n of
Procureme
nt
Quantity
(where
applicabl
e)
Estimated
unit cost
(where
applicable)
Estimate
d total
cost
(in
Million
Rs.)
Funds
allocate
d
(in
Million
Rs.)
Source of
funds
(ADP/
Non ADP)
Proposed
procurem
ent
method
Timings of
Procurement
2016-2017
Timings of
Procurement
2017-2018
Q1
Q
2
Q3 Q4 Q1
Q
2
Q
3
Q4
1.
2.
3.
4.
5.
1
PROCUREMENT PLAN FOR THE YEAR _________________________
DEPARTMENT:_________________________________________________

Limitation on Splitting or Regrouping of proposed
Procurement (Rule-9):
A procuring agency shall announce in an appropriate manner all
proposed procurements for each financial year and shall proceed
accordingly without any splitting or regrouping of the
procurements so planned. The annual requirements thus
determined would be advertised in advance on the Authority’s
website as well as on the website of the procuring agency in case
the procuring agency has its own website.
27

Specifications (Rule-10):
Specification shall allow the widest possible competition and shall not favour
any single contractor or supplier nor put others at a disadvantage.
Specifications shall be generic and shall not include reference to brand names,
model numbers, catalogue numbers or similar classifications. However; if PA
convinced that use of such reference / brand / catalogue number is essential to
complete specifications, than it shall be qualified with the words “Or
Equivalent”.
 Provided that this rule shall not apply to procurement made by public sector
commercial concerns on the demand of private sector client specifying, in
writing, a particular brand, model or classification of equipment, machinery
or other objects.
28

Constitution of
Committees
Preparation of
NIT/RFP and
documents
Publication of
NIT/ RFP
Issuance of
Bidding/ RFP
Documents
Submission and
opening of bids
/ proposals
Evaluation of
bids / proposals
Announcement
Evaluation
Reports
Issuance of
Letter of
Acceptance
Signing / Award
of Contract
30

1. Principal Method of Procurement (Rule-20): the
Procuring agencies shall use open competitive bidding as the
principal method of procurement for the procurement of goods,
works and services.
the procuring agencies shall engage in open competitive
bidding if the cost of the object to be procured is more
than Rs.100,000/-
31

32
a. Petty Purchases
b. Request for Quotations
c. Direct Contracting
d. Negotiated Tendering

a) Petty Purchases
Cost of procurement is below Rs.25,000
No quotations or bidding process is required
PA shall ensure compliance of Rule-4 i.e. principles of
procurement
Provided further that procuring agencies convinced of the inadequacy of
the financial limit prescribed for petty purchases in undertaking their
respective operations may approach the Federal Government for
enhancement of the same with full and proper justifications.
33

b) Request for Quotations
◦ Cost of procurement is equivalent to or above Rs.25,000 and
below Rs.100,000
◦ Minimum Three Quotations are required to ensure competitive
prices
34

b) Rquest for Quotations (Contd…)
Provided that the respective Boards of Autonomous bodies are
authorized to fix an appropriate limit for request for quotations
method of procurement subject to a maximum of rupees five
hundred thousand which will become financial limit under this
sub-rule:
Provided further that procuring agencies convinced of the
inadequacy of the financial limit prescribed for request for
quotations in undertaking their respective operations may
approach the Federal Government for enhancement of the same
with full and proper justifications;
35

c) Direct Contracting
A procuring agency shall only engage in
direct contracting if the following
conditions exist:-
 the procurement concerns the acquisition
of spare parts or supplementary services
from original manufacturer or supplier:
Provided that the same are not available
from alternative sources;
36

c) Direct Contracting (Contd…)
 only one manufacturer or supplier exists for the required
procurement:
Provided that the procuring agencies shall specify the appropriate fora,
which may authorize procurement of proprietary object after due
diligence; and
 where a change of supplier would oblige the procuring agency to
acquire material having different technical specifications or
characteristics and would result in incompatibility or disproportionate
technical difficulties in operation and maintenance:
Provided that the contract or contracts do not exceed three years in
duration;
37

c) Direct Contracting (Contd…)
 repeat orders not exceeding fifteen per cent of the original
procurement;
 in case of an emergency:
Provided that the procuring agencies shall specify appropriate fora
vested with necessary authority to declare an emergency;
 when the price of goods, services or works is fixed by the
government or any other authority, agency or body duly
authorized by the Government on its behalf and
 for purchase of motor vehicle from local original manufacturers
or their authorized agents at manufacturer’s price.
38

d) Negotiated Tendering:
A procuring agency may engage in negotiated tendering with one or more
suppliers or contractors with or without prior publication of a procurement
notification. This procedure shall only be used when:
i. The supplies involved are manufactured purely for the purpose of
supporting a specific piece of research or an experiment, a study or a
particular development;
ii. For technical or artistic reasons, or for reasons connected with protection
of exclusive rights or intellectual property, the supplies may be
manufactured or delivered only by a particular supplier
39

d) Negotiated Tendering: (contd…)
iii. for reasons of extreme urgency brought about by events
unforeseeable by the procuring agency, the time limits laid down
for open and limited bidding methods cannot be met. The
circumstances invoked to justify extreme urgency must not be
attributable to the procuring agency:
Provided that any procuring agency desirous of using negotiated
tendering as a method of procurement shall record its reasons and
justifications in writing for resorting to negotiated tendering and
shall place the same on record.
40

Procurement Methods Definitions
Write Appropriate
Methods
 It shall be the default method of procurement for all
procurements and open for all interested parties, firms or
individuals with an estimated cost above Pak rupees one
hundred thousand. The Procuring Entity may choose
appropriate method of open competitive bidding in case of
 (i) Procurement of works Goods and services of sophisticated
nature where in local market has limited potential or under
monopolistic market.
 (ii) Procurement of works Goods and services of routine
nature where in local market has potential and plenty of
contractors are available
Open
Competitive
Bidding
International
Competitive
Bidding
"National
Competitive
Bidding"

Write Appropriate
Methods
 It is the method based on comparing price quotations obtained from
at least three suppliers, contractors, and service providers, in the
case of services other than consulting services, to assure competitive
prices. Procuring agencies use the this method
(1) where the object of the procurement is/has:
• above the financial limit of twenty five thousand rupees and
below the prescribed limit of one hundred thousand rupees
• standard specifications
• purchased from the supplier offering the lowest price
(2) It shall indicate the description and quantity of goods or
specifications of works, as well as desired delivery, or completion
time & place. Quotation may be submitted by letter, facsimile or by
electronic means. Further, evaluation of quotations shall follow the
same principles as applicable.
"Request For
Quotation (RFQ)"

Write Appropriate
Methods
 This method means procurement from a single source without competition
and shall only be applicable under any of the following conditions:
 standardization of equipment or spare parts, to be compatible with the
existing equipment, Provided that the competent authority certifies in writing
the compatibility of the equipment or spare part(s) to be procured;
 the required item(s) is of proprietary nature and obtainable only from one
source, Provided that the Head of the Department certifies in writing the
proprietary nature of the item(s) to be procured;
 when the price of goods and works and service related thereto, is fixed by
Government or any other authority, agency or body duly authorized by the
Government, on its behalf;
 for purchase of locally manufactured motor vehicle from local manufacturers
or their authorized agents at manufacturer’s price;
 in cases of emergency; Provided that the Head of the Department or any
other officer not below BS-20 to whom such powers have been delegated by
the Head of the Department, declares that a situation of emergency has arisen
and reasons for making such a declaration shall be recorded in writing.
"Direct
Contracting"

Write Appropriate
Methods
 Procuring agencies may provide for it, where the object of the
procurement is below the financial limit of twenty five thousand
rupees. Such procurement shall be exempt from the requirements of
bidding or quotation of prices; Provided that procuring agencies
shall ensure that the procurement of it is in conformity with the
principles of procurement prescribed in Rule 4 (principles of
procurement).
"Petty Purchases"

Write Appropriate
Methods
 It means procurement of additional quantities of the item(s) from the
original contractor or supplier, where, after the items originally
envisaged for the project or scheme have been procured through open
competitive bidding, and such additional quantities of the same item(s)
of goods or works are needed to meet the requirements of the project
or scheme; Provided that; (i) the cost of additional quantities of
item(s) shall not exceed 15% of the original contract amount; and (ii)
the original supplier and contractor are willing to supply goods or carry
out additional work on the same prices as agreed in the original
contract. (iii) in case of goods, it shall be permissible only within the
same financial year, and in case of works, during the currency of the
project(s) or scheme(s).
"Repeat Orders"

Methods of advertisement (Rule-12)
48
Procurement over Rs.100,000 and up to Rs.2,000,000 shall be
advertised on;
• Authority’s website and may in print media.
Procurement over Rs.2,000,000 shall be advertised on;
• PPRA Website + 2 national dailies (English & Urdu)

1) The procuring agency may decide the response time for
receipt of bids or proposals (including proposals for pre-
qualification) from the date of publication of an advertisement or
notice, keeping in view the individual procurement’s complexity,
availability and urgency.
However, under no circumstances the response time shall be less
than fifteen days for national competitive bidding and thirty
days for international competitive bidding from the date of
publication of advertisement or notice.
49
Response Time (Rule 13)

2) The response time shall be calculated from the date of
first publication of the advertisement in a newspaper or
posting on the web site, as the case may be.
3) In situations where publication of such advertisements or
notices has occurred in both electronic and print media, the
response time shall be calculated from the day of its first
publication in the newspapers.
50
Response Time (Rule 13) (contd…)

Exception from publication of advertisement (Rule-14):
Under following circumstances, subject to prior approval of the
Authority, the PA may deviate from the requirement of advertisement;
◦ National Security related procurement
◦ Proprietary nature procurement
◦ Procurement falls within definition of Intellectual
Property
51

“Bidding Documents” means a document or a set of documents
prescribing the quantity, quality, characteristics, conditions and
procedures of the transactions prior to the actual procurement and
on the basis of which bidders prepare their bids.
52

Contents of biding documents [Rule 23(2)]
 invitation to bid;
 instructions to bidders;
 form of bid;
 form of contract;
 general or special conditions of contract;
 specifications and drawings or performance criteria (where
applicable);
 list of goods or bill of quantities (where applicable);
 delivery time or completion schedule;
 qualification criteria (where applicable);
 bid evaluation criteria;
 format of all securities required (where applicable);
 details of standards (if any) that are to be used in assessing the
quality of goods, works or services specified; and
 any other detail not inconsistent with these rules that the
procuring agency may deem necessary.
53

 In case of large works or complex items, turnkey
projects,
 Where setting out specifications is difficult
 Where alternate solutions are available
 Market knowledge is limited
 Sometimes the bidders may also request a Pre Bid
meeting
 Pre-bid meetings are held to clarify the technical,
regulatory and procurement aspects of the bidding
documents
54

Evaluation Criteria [Rule-29]
◦ The Procuring Agencies shall formulate an appropriate
evaluation criteria listing all the relevant information
against which a bid is to be evaluated.
◦ Evaluation criteria shall be part of BDs
◦ Non-provision of Evaluation Criteria in BDs shall
amount to mis-procurement.
55

Submission of Bids (Rule-22)
◦ The bids shall be submitted in a sealed package or
packages in such manner that the contents are fully
enclosed and cannot be known until duly opened.
◦ A procuring agency shall specify the manner and method
of submission and receipt of bids in an unambiguous and
clear manner in the bidding documents.
56

 Screening of potential contractors, suppliers, or vendors (on
the basis of factors such as experience, financial ability,
managerial ability, reputation, work history, etc.) to develop a list
of qualified bidders
 classifies the contractor according to their expertise and
capability in specific work categories within a specific financial
range.
 the process enables prospective Bidders, who may be
insufficiently qualified on their own, to avoid the expense of
bidding, or to form a joint venture that may give a better chance
of success;
58

A procuring agency may engage in prequalification of
bidders only in following cases:
 services, civil works, turnkey projects
 procurement of expensive and technically complex
equipment
59

 Experience and past performance on similar assignments;
 Capabilities with respect to construction or
manufacturing facilities;
 Financial capability;
 Capabilities with respect to personnel, equipment, and
plant;
 Appropriate managerial capability; etc.
60

 A procuring agency, at any stage of the procurement proceedings,
having credible reasons for or prima facie evidence of any defect in
supplier's or contractor's capacities, may require the suppliers or
contractors to provide information concerning their professional,
technical, financial, legal or managerial competence whether
already pre-qualified or not:
 Provided that such qualification shall only be laid down after
recording reasons therefore in writing. They shall form part of the
records of that procurement proceeding.
61

The procuring agency shall disqualify a supplier or contractor
if it finds, at any time, that the information submitted by him
concerning his qualification as supplier or contractor was false
and materially inaccurate or incomplete.
62

 The procuring agencies shall specify a mechanism and
manner to permanently or temporarily bar, from participating
in their respective procurement proceedings, suppliers and
contractors who either consistently fail to provide
satisfactory performances or are found to be indulging in
corrupt or fraudulent practices.
 Such barring action shall be duly publicized and
communicated to the Authority:
 Provided that any supplier or contractor who is to be
blacklisted shall be accorded adequate opportunity of being
heard. 63

 The PA may require the bidders to furnish a bid
security, not exceeding 5% of the bid price
64

◦ A procuring agency, keeping in view the nature of the procurement,
shall subject the bid to a bid validity period.
◦ Bids shall be valid for the period of time specified in the bidding
document.
◦ The procuring agency shall ordinarily be under an obligation to
process and evaluate the bid within the stipulated bid validity
period. However under exceptional circumstances and for reason to
be recorded in writing, if an extension is considered necessary, all
those who have submitted their bids shall be asked to extend their
respective bid validity period. Such extension shall be for not more
than the period equal to the period of the original bid validity.
65

 Bidders who,-
◦ agree to extension of their bid validity period shall also extend
the validity of the bid bond or security for the extended period
of the bid validity;
◦ agree to the procuring agency’s request for extension of bid
validity period shall not be permitted to change the substance
of their bids; and
◦ do not agree to an extension of the bid validity period shall be
allowed to withdraw their bids without forfeiture of their bid
bonds or securities
66

 Where needed and clearly expressed in the bidding
documents, the procuring agency shall require the successful
bidder to furnish a performance guarantee which shall not
exceed ten per cent of the contract amount.
67

Bid Opening (Rule-28)
 date for opening of bids and last date of submission of bids
shall be the same
 bids shall be opened at least thirty minutes after the deadline for
submission
 All bids shall be opened publicly in the presence of the bidders
or their representatives who may choose to be present
 The procuring agency shall read aloud the unit price as well as
the bid amount
 The procuring agency shall record the minutes of the bid
opening
 All bids submitted after the time prescribed shall be rejected
and returned without being opened.
69

Bid Clarification (Rule-31)
◦ No alteration or modification allowed after the
bids have been opened.
◦ clarifications needed to evaluate the bids may be
sought but the substance or price of the bid shall
not change;
◦ request for clarification and response shall be in
writing.
70

Discriminatory and difficult conditions.- (Rule-32)
Save as otherwise provided, no procuring agency shall introduce
any condition, which discriminates between bidders or that is
considered to be met with difficulty. In ascertaining the
discriminatory or difficult nature of any condition reference shall
be made to the ordinary practices of that trade, manufacturing,
construction business or service to which that particular
procurement is related.
71

 Evaluation of bids (Rule-30)
 (1) All bids shall be evaluated in accordance with the
evaluation criteria and other terms and conditions set forth in
the prescribed bidding documents. Save as provided for in sub-
clause (iv) of clause (c) of rule 36 no evaluation criteria shall
be used for evaluation of bids that had not been specified in the
bidding documents.
 (2) For the purposes of comparison of bids quoted in different
currencies, the price shall be converted into a single currency
specified in the bidding documents. The rate of exchange shall
be the selling rate, prevailing on the date of opening of bids
specified in the bidding documents, as notified by the State
Bank of Pakistan on that day.
72

Procuring agencies shall announce the results of bid evaluation
in the form of a report giving justification for acceptance or
rejection of bids at least ten days prior to the award of
procurement contract.
73

 Single Stage – One Envelope
 Single Stage – Two Envelope
 Two Stage Bidding
 Two Stage – Two Envelope Bidding
74

Conditions for Use of Various Procedures (Rule-37)
Single Stage One Envelope Bidding Procedure
◦ Single stage one envelope bidding procedure shall ordinarily be the main open
competitive bidding procedure used for most of the procurement. Other appropriate
procedures of open competitive bidding shall be selected in the following
circumstances, namely:-
(a) Single Stage Two Envelope Bidding Procedure
◦ bids to be evaluated on technical and financial grounds
◦ price is taken into account after technical evaluation;
(b) Two Stage Bidding Procedure
◦ large and complex contracts
◦ unequal proposals or two or more equally acceptable technical solutions available to
the procuring agency; and
(c) Two Stage Two Envelope Bidding Procedure shall be used for
procurement where alternate technical proposals are possible.
75

Acceptance of Bids - (Rule-38)
◦ the bidder with the lowest evaluated bid, shall be awarded the
procurement contract,
◦ within the original or extended period of bid validity.
Limitation on Negotiations– (Rule-40)
◦ Save as otherwise provided there shall be no negotiations
with the bidder having submitted the lowest evaluated bid
or with any other bidder:
◦ Provided that the extent of negotiation permissible shall be
subject to the regulations issued by the Authority.
76

Confidentiality– (Rule 41)
◦ The PA shall keep all information regarding the bid
evaluation confidential until the time of announcement
of evaluation report in accordance with the
requirements of Rule-35
77

 Except for defect liability or maintenance by the supplier, consultant or
contractor, as specified in the conditions of contract, performance of the contract
shall be deemed close on the issue of overall delivery certificate, certificate of
completion of deliverables, or taking over certificate which shall be issued within
thirty days of final taking over of goods or receiving the deliverables or
completion of works enabling the supplier or contractor to submit final bill and
the procuring agency to carry out any inspection of goods, works or services
related thereto, as provided in the contract agreement and auditors to do
substantial audit.
 In case of defect liability or maintenance periods, defect liability certificate shall
be issued within thirty days of the expiry of the said period enabling the supplier
or contractor to submit the final bill.
 Except for unsettled claims, which shall be resolved through arbitration, and
shall be paid within the time given in the conditions of contract.
78

Integrity Pact (Rule-7)
◦ Contract exceeding Rs.10 M,
79

(1) All procuring agencies shall maintain a record of their
respective procurement proceedings along with all
associated documentation for a minimum period of five
years.
(2) Such maintenance of record shall be subject to the
regulations framed in this regard from time to time.
80

Consultant- a professional who can:
◦ Provide specialist advice or
◦ Give technical assistance for making policies
◦ Study, design, organize, evaluate and manage projects
82
Includes
• Consulting firms, Legal
advisors, Engineering
firms, Construction
managers, Management
firms, Procurement agents,
Inspection agents,
Auditors, Investment and
merchant banks,
Universities, Research
institutions etc.

“Consulting Services” means services of an advisory and
intellectual nature provided by consultants using their
professional skills
83
Includes
• Study, design, organize and
manage projects
• Legal advice
• Planning & Engg Studies
• Arch. Design services
• Supervision,
• Social & Environmental
Assessment etc.

 Best Quality of Services
 Economy and Efficiency
 Equal opportunity to all qualified consultant
 Encouraging Local talent
 Transparency in process
84

(1) The procuring agency shall appoint Committee for short listing and selection of
consultant. The Committee shall comprise of at least three competent relevant persons
to evaluate the consultants as per evaluation criteria. In case of non-availability of in-
house expertise the procuring agency may engage outside appropriate sources.
(2) The Committee shall advise on short listing and prequalification of consultants.
(3) Except for single source selection, the Committee shall evaluate the request for
proposals in accordance with clause (b) of rule 36 of the Public Procurement Rules,
2004.
(4) The bidder whose technical and financial proposal is the most advantageous shall
be ranked highest and his bid accepted:
Provided that adjustments in the main days of various level of professionals etc. may
be negotiated, as per requirement if deemed necessary, without any price or rate
negotiations.
85

 Quality Based Selection Method
◦ Used for specialized, complex and
innovative assignments where quality is
the only factor of consideration.
◦ Proposal with highest technical score is
selected
◦ Financial proposal of technically
responsive or highest ranked proposal
only shall be opened.
86
• Least Cost Selection Method
• Assignments of standard or routine
nature
• Financial proposals of only technically
qualified firms are opened
• Selection on the basis of lowest cost

 Fixed Budget Method
◦ Simple, Precisely defined, Fixed
Budget Assignments
◦ Proposals that exceed the budget are
rejected
◦ Ranking based on technical evaluation
of qualified bidders
87
• Quality and Cost Based Selection Method
• TORs well defined
• Quality primary consideration and cost
secondary requirement
• Combined weighted technical and
financial score- basis for selection

(1) The procuring agency shall constitute a committee comprising
of odd number of persons, with proper powers and authorizations,
to address the complaints of bidders that may occur prior to the
entry into force of the procurement contract.
(2) Any bidder feeling aggrieved by any act of the procuring
agency after the submission of his bid may lodge a written
complaint concerning his grievances not later than fifteen days
after the announcement of the bid evaluation report under rule 35.
89

(3) The committee shall investigate and decide upon the complaint
within fifteen days of the receipt of the complaint.
(4) Mere fact of lodging of a complaint shall not warrant suspension
of the procurement process.
(5) Any bidder not satisfied with the decision of the committee of
the procuring agency may lodge an appeal in the relevant court of
jurisdiction.
90

(1) After coming into force of the procurement contract, disputes
between the parties to the contract shall be settled by arbitration.
(2) The procuring agencies shall provide for a method of
arbitration in the procurement contract, not inconsistent with the
laws of Pakistan.
Mis-procurement (Rule-50)
Any unauthorized breach of these rules shall amount to mis-
procurement.
91

PPRA Law Rules
Federal Ord., 2002 Rules, 2004
Punjab Act, 2009 Rules, 2014
Sindh Act, 2009 Rules, 2010
KPK Act, 2012 Rules, 2014
Balochistan Act, 2009 Rules, 2014
Azad Jammu
Kashmir
Act, 2017 Rules, 2017
93

Federal PPRA 8. Within one year of Commencement of these rules.
Punjab PPRA
8. Within one month from the commencement of a
financial year.
Sindh PPRA
11. (2) Reviewed and updated APP –hosting on Authority’s
website in advance.
KPK PPRA
31. Announce all proposed annual procurements before the
end of 31st July each year.
Baluchistan
PPRA
11. (2) Reviewed and updated throughout the life of the
project - hosting on Authority’s website in advance.
AJ&K PPRA 8. Within one year of Commencement of these rules.

Federal PPRA 12. (1) one hundred thousand rupees and up to the limit
of two million rupees Urdu, English.
Punjab PPRA 12. (1) one hundred thousand rupees and up to the limit of
two million rupees Urdu, English.
Sindh PPRA 17. (1) one hundred thousand rupees and up to the one
million rupees Urdu, English, Sindhi.
KPK PPRA 11. (1) 19.(1) one hundred thousand rupees and up to the
limit of 2.5 million rupees Urdu, English.
Baluchistan PPRA 15. (1) one hundred thousand rupees and up to one million
rupees Urdu, English.
AJ&K PPRA 12. (1) one hundred thousand rupees and up to the limit of
two million rupees Urdu, English.

Federal PPRA (a) 15 days NCB
(b) 30 days ICB (Rule-30)
Punjab PPRA (a) 15 days NCB
Sindh PPRA (a) 15 days NCB
KPK PPRA (a) 15 days NCB
Baluchistan
PPRA
(a) 15 days NCB
AJ&K PPRA (a) 15 days NCB

Federal PPRA
Punjab PPRA 2.(sa), 15. procurement is made for a certain
volume or quantity over a specific period
against an agreed sum or rate per item or
lump sum.
Sindh PPRA
KPK PPRA 31A. The procuring entity shall adopt any of
the methods of procurement mentioned in
these rules for purposes of entering into a
framework contract.
Baluchistan PPRA
AJ&K PPRA

Federal
PPRA
15.(1) Services, civil works, turnkey projects and expensive and
technically complex equipment.
Punjab PPRA
16.(1) Services, civil works, turnkey projects and expensive and technically
complex equipment.
(2) Goods of one hundred million rupees and above and large consultancy
Sindh PPRA
27. (1) Large and complex works and services, turnkey, design and build, or
management contract, expensive and technically complex equipment and
works, drugs & medicines of complex nature.
KPK PPRA
8. (1) Contracts exceeding Rs.10 million, large and complex goods and
related services.
16. (1) A work irrespective of its worth is considered as complex.
Baluchistan
PPRA
18. (1) Large and complex works and services, turnkey, design and build, or
management contract, expensive and technically complex equipment and
works, drugs & medicines of complex nature.
AJ&K PPRA
15.(1) Services, civil works, turnkey projects and expensive and technically
complex equipment.

Federal
PPRA
25. May require bid security not exceeding 5%
of the bid price.
Punjab PPRA 27. May require bid security not exceeding 5% of
estimated price.
Sindh PPRA 37. Shall require bid security not below 1% and
not exceeding 5% of the bid price.
KPK PPRA 12. Up to 2% in case of procurement of goods, if
required. In complex nature, up to 5%.
20. 2% in case of procurement of works.
Baluchistan
PPRA
29. (2) 2% in case of all bids in the form of bank
guarantee or deposit at Call from a scheduled
bank. Up to five percent (5%) in complex
procurement.
AJ&K PPRA 25. May require 2% to 5% of the bid price.

Federal PPRA 28. Same day – Shall not be less than thirty minutes
after closing time – unit price as well as the bid
amount.
Punjab PPRA 30. Same day – Shall not be less than thirty minutes after
closing time – unit price as well as the bid amount
Sindh PPRA 41. Same day open within one hour – announce name of
the bidder and total amount of each bid.
KPK PPRA 37. Same day – total amount of each bid and any
alternatives.
Baluchistan
PPRA
33. Same day open within one hour – announce name of
the bidder and total amount of each bid.
AJ&K PPRA 28. Same day – at least thirty minutes after the deadline
for submission of bids, unit price as well as the bid
amount.

Federal
PPRA
35. At least ten days prior to the award of
Punjab
PPRA
Sindh PPRA 45. At least Three working days prior to the award of
procurement contract. Hosting on Authority’s
website is mandatory.
KPK PPRA 45. At least ten days prior to the award of
Baluchistan
PPRA
AJ&K
PPRA

10
2
Federal
PPRA
48. Single tier – Prior to the entry into force of the
procurement contract – not later than 15 days after
announcement of bid evaluation report – appeal in court.
Punjab PPRA 67. Single tier – Prior to the entry into force of the procurement
contract – not later than 10 days after announcement of bid
evaluation report – no appellant forum defined.
Sindh PPRA 31-32. Two tier –during the procurement proceedings - after
issuance of NIT – Appeal to the Review committee of Authority.
KPK PPRA 3(3) Two tier– at any time prior to award of the contract, within
ten (10) days of making it public in terms of rule 46 of the
procurement rules and pertaining to execution of the contract until
closure of the contract in terms of rule 51 of the procurement rules
– Appeal to Authority.
Baluchistan
PPRA
56. Single tier – Prior to the entry into force of the procurement
contract – appeal in court.
AJ&K PPRA 48. Single tier – Prior to the entry into force of the procurement
contract – not later than 15 days after announcement of bid
evaluation report – appeal in court.

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