Purchase and Disposal

Procedures

Abdul Wahab
Director (P&V) WAPDA 1
 CONTENTS

• Public Procurement in Pakistan

• Procurement Modes
• Advertisement
• Bidding Documents
• Opening, Evaluation and Rejection of Bids
• Framework Agreements
• Disposal Procedure
• Survey Report
• Verification Procedure of Disposal Material
• Alternate Methods of procurement
• Modes of Disposal
PUBLIC PROCUREMENT

Acquisition of

Goods Services Works

Financed wholly or partly out of the Public Fund,
unless excluded otherwise by the Government
 LEGAL AND REGULATORY
FRAMEWORK

• Public Procurement Regulatory Authority (PPRA) Rules.

• WAPDA’s internal procurement manuals or SOPs.

• Relevant government financial rules and audit requirements.

E-PAK ACQUISITION & DISPOSAL
SYSTEM (EPADS)

 e-procurement platform developed by PPRA under the

E-Pak Procurement Regulations 2023

 Mandatory for public procurements.

 Over 8,000 procuring agencies and 30,000 vendors

registered

 Enhanced transparency through electronic tracking

 Reduced paperwork and human intervention

 Easier auditing and monitoring

5
 PROCUREMENT

Initiation of Purchase
 Procurement Plan

 Inclusion in the approved budget.

 Local Component

 Foreign Exchange Component

 Administrative & financial approval.

6
 Procurement Modes

 Quotations (for small purchases).

 Open Competitive Bidding (most common).

 Direct Contracting (emergency/justified cases).

 Framework contracts (for repetitive purchases).

 PPRA RULE 42(a)

PETTY PURCHASE

 Procurement below the financial limit of Rs 100,000/-.

 Exempted from the requirements of bidding or quotation of

prices.

 Required items are procured normally through Purchase

Committee from Local Market.

 Single Quotation is sufficient.

 PPRA RULE 42(b)

REQUEST FOR QUOTATIONS

 Where the value of procurement is between Rs 100,001/-

to Rs. 500,000/-.

 Minimum of three quotations are obtained.

 This is also done through Purchase Committee from

Local Market.
 PPRA RULE 42(c)

DIRECT CONTRACTING

 The procurement concerns the acquisition of spare parts

or supplementary services from original manufacturer or
supplier.
 Only one manufacturer or supplier exists for the required
procurement.
 In case of an emergency.
 Provided that the procuring agencies shall specify
appropriate fora vested with necessary authority to declare
an emergency
 DIRECT CONTRACTING

 Repeat orders not exceeding fifteen per cent of the original

procurement;

 When the price of goods, services or works is fixed by the

government.

 For purchase of motor vehicle from local original manufacturers

or their authorized agents at manufacturer’s price.
 Rule -20
PRINCIPAL METHOD OF
PROCUREMENT

The PA shall use open competitive bidding as the

principal method of procurements to ensure:

o Fair and transparent competition

o Equal opportunities for interested bidders
o No discrimination
 Rule - 37

CONDITIONS FOR USE:

Single stage one • Used for most of the procurements

envelope:
Single stage two • Evaluation on Technical and Financial grounds.
envelope: • Price is taken into account after technical
evaluation
Two stage bidding: • Used for large and complex contracts
• In first stage technical proposals are discussed.
• In second stage revised technical proposals
along with price is evaluated.
Two stage two envelope: • Both technical and financial proposals are
submitted in first stage.
• Only Technical proposal is opened and
discussed.
• In second stage revised technical proposal, initial
price & additional supplementary price is
evaluated.
PROCUREMENT OF CONSULTANCY

Quality Based Selection • Appropriate for complex and high value projects
(QBS) • Selection on basis of quality parameters not cost
Quality and Cost Based • Quality is the prime consideration while cost is
System (QCBS) the secondary consideration
• Quality (70%-90%), Cost (10%-30%)
Fixed Budget Method • Simple assignments

Least Cost Method • When cost is important factor.

Single Source or Direct • In emergent situations.

Selection • Continuation of previous services

Individual Consultant • Where teams of personnel / Home Supportare

not required

 Procurement Procedures for Consultants.

 Rule 12

ADVERTISEMENT METHODS

 Rs.500,000 – Rs. 3 Million :

o to be advertised on the “PPRA’s website”
 Over Rs.3 Million :
o to be advertised on the PPRA’s website
o Newspapers, at least two national dailies( English and Urdu),
having wide circulation.
 Procuring agency has its own website:
o May post all advertisement on website
o Ensure Complete information posted on website
o Information shall remain on that website until the closing date for
the submission of bids.
 ADVERTISING

• Name of Procuring Agency.

• Tender Number (for identification)
• Procurement Title (indicating type and quantity).
• Contact person and address (for seeking bidding documents).
• Last date for obtaining bidding documents and its price.
• Closing time and date as well as place for receiving bids.
• Time and Place of public opening of bids.
• Amount of bid security (% age of bid price).
• Time period for performance of contract
17
 Rule 13
RESPONSE TIME FOR RECEIPT
OF BIDS

 The Procuring agency may decide :

o Minimum 15 days for National Competitive Bidding

o Minimum 30 Days for International Competitive bidding.

 Rule 23

BIDDING DOCUMENTS

 The Procuring agencies shall formulate

precise and unambiguous bidding
documents that shall be made available to the
bidders immediately after the publication of the
invitation to bid.
 Rule 23

REQUIRED DOCUMENTS

(a) Invitation to bid;

(b) Instructions to bidders;
(c) Form of bid;
(d) Form of contract;
(e) General or special conditions of contract;
(f) Specifications and drawings or performance
criteria (where applicable);
(g) List of goods or bill of quantities (where
applicable);
(h) Delivery time or completion schedule;
 Rule 23

REQUIRED DOCUMENTS

(i) Qualification criteria (where applicable);

(j) Bid evaluation criteria;
(k) Format of all securities required (where
applicable);
(l) Details of standards (if any) that are to be used in
assessing the quality of goods, works or services
specified; and
(m) Any other detail not inconsistent with these
rules which may deem necessary
 Rule -22
SUBMISSION OF BIDS

 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.
 Rule 25
BID SECURITY

 The procuring agency may require the bidders to furnish a

fixed amount of bid security not exceeding five percent
of the estimated value of procurement determined by the
procuring agency.

 Provided that in case where the procuring agency does not

require the bid security, the bidder shall submit bid securing
declarations.
 Rule 26

BID VALIDITY

 Bid validity period must be specified

 P.A shall process the bid within bid validity period

 Extensions under exceptional circumstances, by recording

reasons

 All applicants shall be asked to extend their bid validity

period

 Extension time shall be for not more than the period equal
to the period of the original bid validity.
 Rule 28
OPENING OF BIDS

 Same date for opening, and submission of bids

 The bids shall be opened at least thirty minutes after the

deadline.

 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 and shall record the minutes of the bid
opening
 Rule 30
EVALUATION OF BIDS

 In accordance with evaluation criteria and other

terms and conditions set in the bidding documents.

 No evaluation criteria shall be used for evaluation

that had not been specified in bidding document.
DETAILED EVALUATION OF BID

Financial • Conversion to Common Currency

Evaluation • Accompanied by required amount of bid
security
• Conforms to all the terms and conditions
Technical • The stores offered are technically sound.
Evaluation • The stores offered are materially and
substantially same or different from the tender
conditions.
• Warranty of the item(s) offered is not provided.

Commercial • Meets the eligibility criteria

Evaluation • Proper Authority Letter
• Firm is not blacklisted
 Rule 31

CLARIFICATION OF BIDS

 The procuring agency may seek and accept

clarifications to the bid that do not change the
substance of the bid.

 Any request for clarification made by the

procuring agency and response by Bidder , shall
invariably be in writing.
LETTER OF INTENT, PURCHASE
ORDER, INSPECTION

• After evaluation of bid, approval is obtained from the

Competent Authority to accept bid of most
advantageous bidder.
• Announcement of evaluation Reports.
• Letter of Intent (LOI) is issued to the same bidder.
• After submission of Performance Guarantee,
Purchase Order is issued.
• Inspection and Testing of the material/goods.
• Release of Performance Guarantee.
 Rule 16 A
PROCUREMENT OF COMMON USE
ITEMS THROUGH FRAMEWORK
AGREEMENTS.
 For recurrent or common use items, services including
maintenance services and those commodities.
 Procurement of common used items in WAPDA shall be carried
out through the office of CE/DG (P&D).
 Prequalification proceedings for selection of suppliers and
service providers.
 Open framework agreements
 Close framework agreements.
 Maximum duration of framework agreements
 Inclusion of new suppliers during continuity of framework
agreements.
31
 Rule 16 B

PROCUREMENT OF COMMON USE

ITEMS THROUGH FRAMEWORK
AGREEMENTS.
 Call of Contract Agreement.
 Requirement for issuance of Call of Contract (Purchase Order).
 Performance Security in Framework Agreements.
 Price Adjustment during the contract execution.
 Delivery Time.
 Payment Readiness Certificate
 Inspection Call and Certificate
 Payment
 LD Charges
 DIS-QUALIFICATION OF
SUPPLIERS AND CONTRACTORS

Action Period Reason

Blacklisted and cross 10 Years Supplier / Bidder is

debarred involved in corrupt and
fraudulent practice

3 Years Supplier fails to perform

his contractual obligations

6 months Bidder fails to abide with

a bid securing declaration

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 Rule – 45

CLOSING OF CONTRACT

 Except for defect liability the performance of the contract shall be

deemed close on the issue of over all delivery certificate or taking over
certificate.

 In case of defect liability or maintenance period, 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.
 Rule – 48

REDRESSAL OF GRIEVANCES
BY THE PROCURING AGENCY
 GRC comprising of odd number of persons.

 Any bidder feeling aggrieved by any act of the procuring agency may
lodge a written complaint within 07 days of announcement of the
technical evaluation report and 05 days after issuance of final
evaluation report.

 In case, the complaint is filed against the technical evaluation report,

the GRC shall suspend the procurement proceedings.

 The GRC shall investigate and decide upon the complaint within ten
days of its receipt