PPRA

PPRA
PROCUREMENT
CODE
th
4 EDITION
 PPRA PROCUREMENT CODE, 4TH EDITION

Outline of Contents
Public Procurement Regulatory Authority Ordinance, 2002
Public Procurement Rules, 2004
Public Procurement Regulations, 2008
Public Procurement Regulations, 2009
Procurement of Consultancy Services Regulations, 2010
Public Procurement Regulations, 2011
PPRA Instructions
Frequently Asked Questions (FAQs)

xi
 PPRA PROCUREMENT CODE, 4TH EDITION

TABLE OF CONTENTS
Page #

PPRA ORDINANCE, 2002 1-9

Section No.
CHAPTER I
PRELIMINARY 2-3
1 Short title, extent and commencement 2
2 Definitions 2
CHAPTER II
ESTABLISHMENT OF AUTHORITY 3-4
3 Establishment of Authority 3
4 Power of the Federal Government to issue directives 3
5 Functions and powers of the Authority 3
CHAPTER III
MANAGEMENT AND ADMINISTRATION OF THE AUTHORITY 4-6
6 Board 4
7 Meeting of the Board 5
8 Managing Director 5
CHAPTER IV
FINANCIAL PROVISIONS 6-7
9 Fund 6
10 Expenditure to be charged on the Fund 6
11 Power to obtain finances and receive grants 7
12 Investment 7
13 Budget and accounts 7
14 Maintenance of accounts 7
15 Audit 7
CHAPTER V
REGULATORY AND OTHER PROVISIONS 7
16 Information 7
17 Annual report 7
CHAPTER VI
MISCELLANEOUS 7-9
18 Appointment of officers and staff, etc 7
19 Members, officers etc. to be public servants 8
20 Delegation 8
21 Power to exempt 8
21-A Ordinance not to apply to certain bodies corporate etc 8
22 Validity of proceedings 8
23 Indemnity 8
24 Common seal 8
25 Winding up 9
26 Power of the Federal Government to make rules 9
27 Power of the Authority to make regulations 9

xiii
 PPRA PROCUREMENT CODE, 4TH EDITION

Page #

PUBLIC PROCUREMENT RULES, 2004 11-31

Rule No.
1 Short title and commencement 13

GENERAL PROVISION 13-15

2 Definitions 13
3 Scope and applicability 15
4 Principles of procurement 15
5 International & Inter-governmental commitments of the Federal Government 15
6 Language 15
7 Integrity Pact 15
PROCUREMENT PLANNING 15-16
8 Procurement Planning 15
9 Limitation on splitting or regrouping of proposed procurement 16
10 Specifications 16
11 Approval mechanism 16
PROCUREMENT ADVERTISEMENTS 16-18
12 Methods of advertisement 16
13 Response time 17
14 Exceptions 17
PRE-QUALIFICATION, QUALIFICATION AND DIS-QUALIFICATION OF
SUPPLIERS AND CONTRACTORS 18-19
15 Pre-qualification of suppliers and contractors 18
16 Pre-qualification process 18
17 Qualification of suppliers and contractors 19
18 Dis-qualification of suppliers and contractors 19
19 Blacklisting of suppliers and contractors 19
METHODS OF PROCUREMENT 19-21
20 Principal method of procurement 19
21 Open competitive bidding 19
22 Submission of bids 19
23 Bidding documents 20
24 Reservations and preference 20
25 Bid security 21
26 Bid validity 21
27 Extension of time for submission of bids 21
OPENING, EVALUATION AND REJECTION OF BIDS 21-27
28 Opening of bids 21
29 Evaluation criteria 22
30 Evaluation of bids 22
31 Clarification of bids 22
32 Discriminatory and difficult conditions 22

xiv
 PPRA PROCUREMENT CODE, 4TH EDITION

Rule No. Page #

33 Rejection of bids 22
34 Re-bidding 23
35 Announcement of evaluation report 23
36 Procedures of open competitive bidding 23
37 Conditions for use of single stage two envelope, two stage and two stage
two envelope bidding procedures 26
ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS 27-30
38 Acceptance of bids 27
39 Performance guarantee 27
40 Limitation on negotiations 27
41 Confidentiality 27
42 Alternative methods of procurements 27
43 On account payments 29
44 Entry into force of the procurement contract 30
45 Closing of contract 30
MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION 30-31
46 Record of procurement proceedings 30
47 Public access and transparency 30
REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES 31
48 Redressal of grievances by the procuring agency 31
49 Arbitration 31
50 Mis-procurement 31
51 Overriding effect 31

PUBLIC PROCUREMENT REGULATIONS, 2008 33-37

Regulation No.
1 Short title and commencement 35
2 Definitions 35
3 Bidding documents 36
4 Record to be kept 36
5 Obtaining the record 36
6 No liability to suppliers etc 37

PUBLIC PROCUREMENT REGULATIONS, 2009 39-45

Regulation No.
1 Short title and commencement 41
2 Posting of contract award on PPRA’s Website 41
Annex - I Contract Award Proforma - I 42
Annex - II Contract Award Proforma - II 44

PROCUREMENT OF CONSULTANCY SERVICES

REGULATIONS, 2010 47-56
Regulation No.
1 Short title and commencement 49
2 Definitions 49
3 Methods for selection of consultants 50

xv
 PPRA PROCUREMENT CODE, 4TH EDITION

Regulation No. Page #

A. (i) Quality based selection 50
(ii) Procedures for selection under the quality based selection 50
B. (i) Quality and cost based selection 51
(ii) Procedures for selection under the quality and cost based selection 51
C. (i) Least cost 51
(ii) Procedures for selection under least cost selection 51
D. (i) Single source or direct selection 52
(ii) Procedures for selection under single source selection 52
E. (i) Fixed budget 52
(ii) Procedures for selection under fixed budget 53
4 Criteria for eligibility of consultants 53
5 Expression of interest 53
6 Criteria for short-listing of consultants 54
7 Criteria for pre-qualification of consultants 54
8 Request for proposals 54
(a) Letter of invitation 54
(b) Instruction to consultants 54
(c) Terms of reference 54
(d) Evaluation criteria 55
(e) Type of contract 55
(f) Proposed contract format 55
(g) Special provisions 55
9 Selection committee 55
10 Extent of negotiations or discussion 56
11 Professional liability of consultants 56
12 Inconsistency 56

PUBLIC PROCUREMENT REGULATIONS, 2011 57-59

Regulation No.
1 Short title and commencement 59
2 International and inter-governmental commitments of Federal Government 59

PPRA INSTRUCTIONS 61-85

1 Declaration of Fees, Commissions and Brokerage etc., Payable by the Suppliers
of Goods, Services and Works 63
2 Integrity Pact 65
3 Request to Enhance the Financial Limits for Open Tenders for Pak Missions
abroad 66
4 Applicability of Public Procurement Rules, 2004 on Public Private Partnership 67
5 Exemption from operation of Public Procurement Rules, 2004 and condonation
of violations of these rules 68
6 Procurement advertisement fee on PPRA webiste 69
7 Grievances Redressal and Principal Accounting Officers 70
8 Access and Transparency 71
9 Award of Contracts and Public Procurement Regulatory Authority 72

xvi
 PPRA PROCUREMENT CODE, 4TH EDITION

Page #
10 Tender Notice on PPRA website and its proof for audit and record 73
11 Price matching 74
12 Registration of firms and charging of registration / processing fees etc 75
13 Publication of tender on PPRA website 76
14 Announcement of Evaluation Reports 77
Evaluation report proforma 78
15 Application of Public Procurement Rules, 2004 and Insurance Ordinance, 2000 79
16 Violation of Public Procurement Rules, 2004 80
17 Enhancement of Tender Fee 81
18 Procurement plan and its uploading on the PPRA website 82
Annual procurement plan proforma 83
19 Redressal of grievances by the procuring agency 84
Grievance redressal committee proforma 85

FREQUENTLY ASKED QUESTIONS (FAQs) 87-95

xvii
Public Procurement Regulatory
Authority Ordinance, 2002

PPRA
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

ORDINANCE NO. XXII OF 2002

AN
ORDINANCE
to provide for the establishment of Public Procurement Regulatory Authority for regulating
public procurement of goods, services and works in the public sector

WHEREAS it is expedient to provide for the establishment of a Public Procurement

Regulatory Authority for regulating procurement of goods, services and works in the public
sector and for matters connected therewith or ancillary thereto;

AND WHEREAS the President is satisfied that circumstances exist which render it
necessary to take immediate action;

NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth

day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the
Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers
enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make
and promulgate the following Ordinance:-

CHAPTER I
PRELIMINARY

1. Short title, extent and commencement.-(1) This Ordinance may be called the
Public Procurement Regulatory Authority Ordinance, 2002.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions.-In this Ordinance, unless there is anything repugnant in the subject or

context,-
(a) “Authority” means the Public Procurement Regulatory Authority
established under section 3;
(b) “Board” means the Board constituted under section 6;
(c) “Chairperson” means the Chairperson of the Board;
(d) “Fund” means the fund established under section 9;
(e) “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;
(f) “Managing Director” means the Managing Director appointed under section 8;
(g) “member” means a member of the Authority;
(h) “misprocurement” means public procurement in contravention of any
provision of this Ordinance, any rules, regulations, orders or instructions made
thereunder or any other law in respect of, or relating to, public procurement;
(i) “prescribed” means prescribed by rules made under this Ordinance;
(j) “procuring agency” means:-

02
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

(i) any Ministry, Division, Department or any Office of the Federal

Government;
(ii) any authority, corporation, body or organization established by or under a
Federal law or which is owned or controlled by the Federal Government;

(k) “Public Fund” means the Federal Consolidated Fund and the Public Account of
the Federation and includes funds of enterprises which are owned or controlled by
the Federal Government;
(l) “public procurement” means acquisition of goods, services or construction of any
works financed wholly or partly out of the Public Fund, unless excluded otherwise
by the Federal Government;
(m) “regulations” means regulations made under this Ordinance;
(n) “rules” means rules made under this Ordinance;
(o) “service” means any object of procurement other than goods or works; and
(p) “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 exceed that of the works themselves.

CHAPTER II
ESTABLISHMENT OF AUTHORITY

3. Establishment of Authority.- (1) There is hereby established an Authority to be called

the Public Procurement Regulatory Authority for carrying out the purposes of this Ordinance.

(2) The Authority shall be a body corporate, having perpetual succession and a common
seal, with powers subject to the provisions of this Ordinance, to acquire and hold property, both
moveable and immovable, and, sue and be sued by the name assigned to it by sub-section (1).

(3) The headquarters of the Authority shall be at Islamabad and it may establish its offices at
such other place or places in Pakistan as it may consider appropriate.

4. Power of the Federal Government to issue directives.-The Federal Government may,

as and when it considers necessary, issue directives to the Authority on matters of policy, and such
directives shall be binding on the Authority.

5. Functions and powers of the Authority.- (1) Subject to other provision of this
Ordinance, the authority may take such measures and exercise such powers as may be necessary
for improving governance, management, transparency, accountability and quality of public
procurement of goods, services and works in the public sector.

(2) Without prejudice to the generality or the powers conferred by sub-section (1), the
Authority may-

(a) monitor application of the laws, rules, regulations, policies and

procedures in respect of, or relating to, procurement;
(b) monitor the implementation of and evaluate laws, rules, regulations, policies and

03
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

procedures in respect of, or relating to, inspection or quality of goods, services

and works and recommend reformulation thereof or revisions therein as it deems
necessary;
(c) recommend to the Federal Government revisions in or formulation of new laws,
rules and policies in respect of or related to public procurement;
(d) make regulations and lay down codes of ethics and procedures for public
procurement, inspection or quality of goods, services and works;
(e) monitor public procurement practices and make recommendations to improve
governance, transparency, accountability and quality of public procurement;
(f) monitor overall performance of procuring agencies and make recommendation
for improvements in their institutional set up;
(g) provide and coordinate assistance to procuring agencies for developing and
improving their institutional framework and public procurement activities;
(h) submit reports to the Government in respect of public procurement activities of
procuring agencies;
(i) call any functionary of procuring agencies to provide assistance in its functions
and call for any information from such agencies in pursuance of its objectives and
functions; and
(j) perform any other function assigned to it by the Federal Government or that is
incidental or consequential to any of the aforesaid functions.

CHAPTER III
MANAGEMENT AND ADMINISTRATION OF THE AUTHORITY

6. Board.- (1) General directions and administration of the Authority and its affairs shall
vest in a Board which may exercise all powers, perform all functions and do all acts and things
which may be exercised, performed or done by the Authority.

(2) The Board shall consist of the following Members, namely:-

(1) Secretary, Finance Division Chairperson

(2) Secretary, Ministry of Industries Member
(3) Secretary, Defence Production Division Member
(4) Secretary, Ministry of Water and Power Member
(5) Secretary, Ministry of Housing and Works Member
(6) Secretary, Ministry of Communications Member
(7) Three Members from private sector be
nominated by the Federal Government Members
(8) Managing Director Member

(3) The Managing Director shall act as Secretary to the Board.

(4) A member appointed from the private sector shall hold office for a period of three years
and shall be entitled to such terms and conditions as the Federal Government may determine.

(5) A member from the private sector may, by writing in his hand addressed to the Federal
Government, resign his office.

04
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

(6) A casual vacancy in the office of a private sector member shall be filled by appointment
of another member from the private sector for the residue of the terms of his predecessor.

7. Meeting of the Board.- (1) The meeting of the Board shall be presided over by the
Chairperson or, in his absence the member elected by the members, shall preside at the meeting of
the Board.

(2) Five members shall constitute a quorum for a meeting of the Board requiring a decision
by the Board.

(3) The meeting of the Board shall be held at such times, places and in such manner as may
be prescribed by regulation.

(4) The members shall have reasonable notice of the time and place of the meeting and
matters on which a decision by the Board shall be taken in such meeting.

(5) The decision of the Board shall be taken by the majority of its members present and, in
case of a tie, the member presiding a meeting shall have a casting vote.

(6) All orders, determination and decision of the Board shall be taken in writing and shall be
signed by the Managing Director.

8. Managing Director.- (1) The Federal Government shall select and appoint a whole
time Managing Director to serve as member of the Board and shall be responsible for day to day
administration of the Authority for such period and on such terms and conditions as the Federal
Government may, determine.

(2) The Managing Director shall be appointed for three years and he shall be eligible for re-
appointment but his total tenure shall in no case exceed six years.

(3) No person shall be appointed or continue as Managing Director, if he-

(a) has been convicted of an offence involving moral turpitude;

(b) has been removed from service for misconduct;
(c) has been adjudicated as insolvent;
(d) is incapable of discharging his duties by reasons of physical or mental incapacity
and has been so declared by a Medical Board appointed by the Federal
Government; or
(e) fail to disclose any conflict of interest at or within the time provided for such
disclosure by or under this Ordinance or contravene any of the provisions of this
Ordinance.

(4) The Managing Director may, at any time, resign his office by writing under his hand
addressed to the Federal Government.

(5) The Managing Director shall be paid such salary and allowances as the Federal
Government may determine but his salary and allowances shall not be varied to his disadvantage
during his term of office.

(6) The Managing Director shall not, during the term of his office, engage himself to any
other service, business, vocation or employment nor shall he before the expiration of one year

05
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

thereof enter into employment or accept any advisory or consult relationship with any person
engaged in public procurement activity:

Provided that where the Managing Director is Government servant there shall be no such
restrictions on his employment after he has retired or transferred from the post of Managing
Director and where he is from private sector he shall not have any direct or indirect financial
interest or have any connection with any company engaged in public procurement activity for so
long as he holds office and for a period of one year thereafter.

(7) The Managing Director shall have power and responsibility to-

(a) exercise administrative control over the personnel of the Authority;

(b) exercise, in respect of the Authority, such other management, administrative and
financial powers as deemed appropriate by the Authority;
(c) submit the annual budget proposals of the Authority to the Board;
(d) prepare the annual report of the Authority for the Board and the Federal
Government;
(e) exercise such powers as the Board may delegate to him; and
(f) act on behalf of the Authority, in any emergency, subject to the obligation to report
such action to the Board at its next meeting and to seek the Board's ratification of
any action so taken.

CHAPTER IV
FINANCIAL PROVISIONS

9. Fund.- (1) There is hereby established a Fund to be known as the Public Procurement
Regulatory Authority Fund which shall vest in Authority and shall be utilized by the Authority to
meet the charges in connection with its functions under this Ordinance.

(2) To the credit of the Public Procurement Authority, a fund shall be placed comprising-

(a) such sums as the Federal Government may, from time to time, allocate to
it in the annual budget;
(b) grants;
(c) income from investment by the Authority; and
(d) all other sums or properties which may in any manner become payable to, or vest
in, the Authority in respect of any matter.

(3) The Authority, while performing its functions and exercising its powers under the
Ordinance, shall exercise highest sense of prudence as far as expenditures are concerned.

10. Expenditure to be charged on the Fund.-The Fund shall be expended for the purpose
of-

(a) paying any expenditure lawfully incurred by the Authority, relating to

remuneration of its members, employees, advisers, and consultants of the
Authority, including provident fund contributions, superannuating allowances or
gratuities, legal fees and costs as well as other fees and costs;
(b) paying any other expenses, costs or expenditure properly incurred or accepted by
the Authority in the performance of its functions or the exercise of its powers
under this Ordinance;

06
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

(c) purchasing or hiring equipment, machinery and any other work and undertakings
in the performance of its functions or the exercise of its powers under this
Ordinance;
(d) repaying any financial accommodation received; and
(e) generally, paying any expenses for carrying into effect the provisions of this
Ordinance.

11. Power to obtain finances and receive grants.-The Authority may, from time to time
and with the approval of the Federal Government, accept grants from entities both domestic and
international, including multilateral agencies for meeting any of its obligations or performing of
any of its functions.

12. Investment.-The Authority may invest its surplus funds in accordance with the
instructions of the Federal Government.

13. Budget and accounts.-The Authority shall cause its accounts to be maintained properly
and in respect of each financial year submit for approval of the Federal Government by such date
and in such form as may be specified by Federal Government a statement showing the estimated
receipts and current expenditure and the sums to be required from the Government during the
next financial year.

14. Maintenance of accounts.-The Authority shall cause proper accounts to be kept and
shall after the end of each financial year cause to be prepared for that financial year a statement of
accounts of the Authority which shall include a balance sheet and an account of receipt and
expenditure.

15. Audit.-The accounts of the Authority, shall be audited every year by the Auditor
General of Pakistan.

CHAPTER V
REGULATORY AND OTHER PROVISIONS

16. Information.- (1) The Authority may call for any information required by it for carrying
out the purposes of this Ordinance, from any person or any institution in public procurement
activities and any such person or institution shall provide the required information called by the
Authority.

(2) The Authority shall furnish to the Federal Government such information with respect to
the policies and procedures it is pursuing or proposes to pursue in the performance of any of its
functions under this Ordinance as the Federal Government may, from time to time, require.

17. Annual Report.-Within one hundred and twenty days from the end of each financial
year, the Authority shall cause a report to be prepared on its activities including inquiries and
investigations made by the Authority under this Ordinance during that financial year and release
to the public after it has been seen by the Cabinet.

CHAPTER VI
MISCELLANEOUS

18. Appointment of officers and staff, etc.- (1) The Authority may, from time to time and
within its resources, appoint such officers, servants, advisers, consultants and experts as it may

07
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

consider necessary for performance of its functions.

(2) The Authority shall by regulations prescribe the procedure for appointment of its
officers, servants, advisers, consultants and experts and the terms and conditions of their service.

19. Members, officers, etc. to be public servants.-The Chairperson, members, Director-

General, officers, servants, advisers, consultants and experts of the Authority shall, when acting
or purporting to act in pursuance of any of the provisions of this Ordinance or the rules and
regulations made thereunder, be deemed to be public servants within the meaning of section 21 of
the Pakistan Penal Code (Act XLV of 1860).

20. Delegation.- The Authority may, by such conditions and limitations as it may deem fit to
impose, delegate any of its functions or powers to the Managing Director, or one or more
members or any of its officers except the power to-

(a) approve audited accounts;

(b) recommend exemption under section21; and
(c) make or repeal regulation made under this Ordinance.

21. Power to exempt.- The Authority may, for reasons to be recorded in writing,
recommend to the Federal Government that the procurement of an object or class of objects in the
national interest be exempted from the operation of this Ordinance or any rule or regulation made
thereunder or any other law regulating public procurement and the Federal Government on such
recommendations shall exempt the aforesaid objects or class of objects from the operation of the
laws and rules and regulations made thereunder.

*[21A. Ordinance not to apply to certain bodies corporate, etc.- (1) Notwithstanding
anything contained in this Ordinance the provisions thereof shall not apply to a body corporate,
company, institution undertaking or establishment specified in the Schedule to this Ordinance,
which has been privatized pursuant to the Privatization Commission Ordinance, 2000 (LII of
2000).

(2) The Federal Government may, by notification in the official Gazette, amend the
Schedule so as to add any entry thereto, modify or omit any entry therein.]

22. Validity of proceedings.- No act or proceedings of the Authority or the Board, shall be
invalid by reason only of the existence of vacancy in, or defect in the constitution of, the Authority
or the Board.

23. Indemnity.- No suit, prosecution, or other legal proceedings shall lie against the
Authority, the Board, the Chairperson or any member, officer, servants, advisers or consultants of
the Authority in respect of anything in good faith done or intended to be done under this
Ordinance or the rules and regulations made thereunder.

24. Common seal.- (1) The Authority shall have a common seal and such seal shall be kept
by the Managing Director or such other person as the Chairperson may authorize.

(2) The seal shall be authenticated in the same manner as may be prescribed by regulation
and any document purported to be sealed with the seal so authenticated shall be receivable as

*Inserted vide Section 19 of the Finance Act, 2006 (Act No. III of 2006)

08
 PUBLIC PROCUREMENT REGULATORY AUTHORITY ORDINANCE, 2002

evidence of the particular stated in the document.

25. Winding up.-No provision of law relating to winding up of bodies corporate shall apply
to the Authority and the Authority shall not be wound up except by the orders of the Federal
Government in the same manner as the Federal Government may direct.

26. Power of the Federal Government to make rules.-The Federal Government may, by
notification in the official Gazette, make rules for carrying out the purposes of this Ordinance.

27. Power of the Authority to make regulations.-The Authority may make regulations,
not inconsistent with the provisions of this Ordinance and the rules made thereunder, for carrying
out the purposes of this Ordinance.

GENERAL
PERVEZ MUSHARRAF,
President.

_____________

MR. JUSTICE
MANSOOR AHMED,
Secretary.

*[THE SCHEDULE]

1. The Pakistan Telecommunication Company

*Inserted vide Section 19 of the Finance Act, 2006 (Act No. III of 2006)

09
Public Procurement Regulations, 2008

PPRA
 PUBLIC PROCUREMENT REGULATIONS, 2008

REGISTERED No.M-302
L.-7646

The Gazette of Pakistan

EXTRAORDINARY
PUBLISHED BY AUTHORITY

ISLAMABAD, FRIDAY, AUGUST 1, 2008

PART II
Statutory Notifications (S.R.O.)

GOVERNMENT OF PAKISTAN

CABINET SECRETARIAT
(Cabinet Division)
NOTIFICATION

Islamabad, the July 11, 2008

S.R.O.805(I)/2008.- In exercise of the powers conferred by section 27 of the Public
Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the Authority is
pleased to make the following regulations, namely:-
1. Short title and commencement.-(1) These regulations may be called the
Public Procurement Regulations, 2008.

(2) They shall come into force at once.

2. Definitions.- (1) In these regulations, unless there is anything repugnant in the
subject of context,-
(a) “Ordinance” means the Public Procurement Regulatory Authority
Ordinance, 2002 (XXII of 2002); and
(b) “rules” means the Public Procurement Rules, 2004.

(2) The expression used but not defined herein shall have the same meaning as are
assigned to them in Ordinance and rules.

35
 PUBLIC PROCUREMENT REGULATIONS, 2008

3. Bidding documents.- A procuring agency when engaged in procurement of

works, shall use the standard form of bidding documents prescribed by the Pakistan
Engineering Council constituted under the Pakistan Engineering Council Act,1975 (V
of 1976).
4. Record to be kept.- A procuring agency shall keep the following record of the
procurement proceedings for at least five years from the date of completion of
procurement of contract or rejection of all bids under rule 33 of the rules, namely:-
(a) a brief description of the goods or works to be procured or of the
procurement need for which the procuring agency requested proposal or
offers;
(b) the names and addresses of suppliers or contractors that submitted bids,
proposals, offers or quotations and name and address of supplier or
contractor with whom the procurement contract is entered into and the
contract price;
(c) the names and addresses of suppliers or contractors who were pre-
qualified or selected and invited to submit bids or technical proposals;
(d) information related to the qualifications or disqualifications of suppliers or
contractors who have submitted bids, proposals, offers or quotations;
(e) the price or the basis for determining the price and a summary of the other
terms and conditions of each bid, proposal, offer or quotation and
procurement contract stipulated by the procuring agency;
(f) evaluation report prepared under rule 35 of the rules, alongwith any
reservation and preference under rule 24 ibid;
(g) in case of rejection of bids pursuant to rule 33 of the rules, its complete
record;
(h) in case of any other method of procurement except open competitive
bidding which does not culminate in procurement contract, a statement to
that effect and the reasons thereof; and
(i) a summary of any requests for clarification of the pre-qualification or
solicitation documents, the response thereto, as well as a summary of any
modification to those documents.
5. Obtaining the record.- (1) After acceptance of the bids or, as the case may be,
termination of the procurement proceedings without resulting in a contract, any person
may, on request, obtain the records referred to in clauses (a) and (c) of Regulation 4.

(2) After acceptance of the bids or, as the case may be, termination of the

36
 PUBLIC PROCUREMENT REGULATIONS, 2008

procurement proceedings without resulting in a contract any person who submitted bids
proposals, offers or quotations or applied for pre-qualification may obtain, on request,
the records referred to in clauses (b), (d), (e), (f) and (g) of Regulation 4.

(3) The record referred to in Regulation 4 may also be made available within a
reasonable time to the Auditor General of Pakistan or any authorized officer of the
Authority or the Federal Government.
6. No liability to suppliers etc.-A procuring agency shall not be liable to suppliers
or contractors for damages owing solely to a failure of keeping record of the
procurement proceedings in accordance with these regulations.

[[Link].2/1/2008/[Link]]

Sd/-
MUHAMMAD FAROOQ
Section Officer (RA-III)

37
Public Procurement Regulations, 2009

PPRA
 PUBLIC PROCUREMENT REGULATIONS, 2009

REGISTERED No.M-302
L.-7646

The Gazette of Pakistan

EXTRAORDINARY
PUBLISHED BY AUTHORITY

ISLAMABAD, THURSDAY, DECEMBER 31, 2009

PART II
Statutory Notifications (S.R.O.)
GOVERNMENT OF PAKISTAN
CABINET SECRETARIAT
(Cabinet Division)
NOTIFICATION
th
Islamabad, the 9 July, 2009

S.R.O.1170(I)/2009.- In exercise of the powers conferred by section 27 of the

Public Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the Public
Procurement Regulatory Authority is pleased to make the following regulations,
namely:-
1. Short title and commencement.- (1) The regulations may be called the Public
Procurement Regulations, 2009.

(2) They shall come into force at once.

2. Posting of contract awards on PPRA's Website.-All procuring agencies
whether within or outside Pakistan shall post Contract Awards over fifty million rupees
on PPRA's website on the proformas as set out in Annexure-I and Annexure-II to these
regulations:

Provided that where any information is related to the award of a contract is of

proprietary nature or where the procuring agency is convinced that such disclosure of
information shall be against the public interest, it can withhold only such information
from uploading on PPRA's website subject to the prior approval of the Public
Procurement Regulatory Authority.

[No.2/1/2008/[Link]]
Sd/-
MUHAMMAD FAROOQ
Section Officer (RA-III)

41
 PUBLIC PROCUREMENT REGULATIONS, 2009

Annexure – I
(See Regulation 2)

PUBLIC PROCUREMENT REGULATORY AUTHORITY

(PPRA)

CONTRACT AWARD PROFORMA – I

To Be Filled And Uploaded On PPRA Website in Respect of All Public Contracts of Works,
Services and Goods Worth Fifty Million Rupees or More

NAME OF THE ORGANIZATION / DEPTT ______________________________

FEDERAL / PROVINCIAL GOVT ______________________________________
TITLE OF CONTRACT ________________________________________________
TENDER NUMBER __________________________________________________
BRIEF DESCRIPTION OF CONTRACT __________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
TENDER VALUE ____________________________________________________
ENGINEER'S ESTIMATE _____________________________________________
(for civil works only)
ESTIMATED COMPLETION PERIOD ___________________________________
WHETHER THE PROCUREMENT WAS INCLUDED IN ANNUAL
PROCUREMENT PLAN? ______________ __________________________Yes/No
ADVERTISEMENT:
(i) PPRA Website ______________________________________________Yes/No
(Federal Agencies) (If yes give date and PPRA's tender number)

(ii) Newspaper ________________________________________________Yes/No

(If yes give names of newspapers and dates)

TENDER OPENED ON (DATE AND TIME) _______________________________

NATURE OF PURCHASE _____________ _________________Local/International
EXTENSION IN DUE DATE (If any) ______________________________ Yes/No
NUMBER OF TENDER DOCUMENTS SOLD _____________________________
(Attach list of buyers)
WHETHER QUALIFICATION CRITERIA WAS INCLUDED IN BIDDING /
TENDER DOCUMENTS ________________________________________Yes/No
(If yes enclose a copy)

42
 PUBLIC PROCUREMENT REGULATIONS, 2009

WHETHER BID EVALUATION CRITERIA WAS INCLUDED IN BIDDING /

TENDER DOCUMENTS ________________________________________Yes/No
(If yes enclose a copy)
WHICH METHOD OF PROCUREMENT WAS USED:- (Tick one)

(a) SINGLE STAGE – ONE ENVELOPE PROCEDURE

(b) SINGLE STAGE – TWO ENVELOPE PROCEDURE

(c) TWO STAGE BIDDING PROCEDURE

(d) TWO STAGE – TWO ENVELOPE BIDDING PROCEDURE

Please specify if any other method of procurement was adopted with brief
reasons (i.e. Emergency, Direct Contracting, Negotiated Tendering etc.)

WHO IS THE APPROVING AUTHORITY _____________________________

WHETHER APPROVAL OF COMPETENT AUTHORITY WAS OBTAINED
FOR USING A METHOD OTHER THAN OPEN COMPETITIVE BIDDING

________________________________________________________________

NUMBER OF BIDS RECEIVED _____________________________________

WHETHER THE SUCCESSFUL BIDDER WAS
LOWEST BIDDER __________________________________________Yes/No
WHETHER INTEGRITY PACT WAS SIGNED ____________________Yes/No

43
 PUBLIC PROCUREMENT REGULATIONS, 2009

Annexure – II
(See Regulation 2)

PUBLIC PROCUREMENT REGULATORY AUTHORITY

(PPRA)

CONTRACT AWARD PROFORMA – II

To Be Filled And Uploaded On PPRA Website in Respect of All Public Contracts of Works,
Services and Goods Worth Fifty Million Rupees or More

NUMBER OF BIDDERS PRESENT AT THE TIME OF OPENING OF BIDS ____

NAME AND ADDRESS OF THE SUCCESSFUL BIDDER __________________
____________________________________________________________________
____________________________________________________________________
RANKING OF SUCCESSFUL BIDDER IN EVALUATION REPORT __________
(i.e. 1st, 2nd, 3rd EVALUATED BID)
____________________________________________________________________
____________________________________________________________________
NEED ANALYSIS (Why procurement was necessary?) ______________________
__________________________________________________________ __________
____________________________________________________________________
IN CASE EXTENSION WAS MADE IN RESPONSE TIME, WHAT WERE THE
REASONS (Briefly describe) ____________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
WHETHER NAMES OF THE BIDDERS AND THEIR PRICES WERE READ
OUT AT THE TIME OF OPENING OF BIDS _________________________Yes/No
DATE OF CONTRACT SIGNING _______________________________________
(Attach a copy of agreement)
CONTRACT AWARD PRICE __________________________________________
WHETHER COPY OF EVALUATION REPORT GIVEN TO ALL
BIDDERS _____________________________________________________Yes/No
(Attach copy of the bid evaluation report)
ANY COMPLAINTS RECEIVED _________________________________Yes/No
(If yes result thereof)
____________________________________________________________________
____________________________________________________________________

44
 PUBLIC PROCUREMENT REGULATIONS, 2009

ANY DEVIATION FROM SPECIFICATIONS GIVEN IN THE TENDER NOTICE/

DOCUMENTS _________________________________________________Yes/No
(If yes give details)
DEVIATION FROM QUALIFICATION CRITERIA __________________Yes/No
(If yes give details)
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

SPECIAL CONDITIONS, IF ANY _________________________________________

(Give brief description)
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

[[Link].2/1/2008/PPRA -[Link]]

45
Procurement of Consultancy Services
Regulations, 2010

PPRA
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

REGISTERED No.M-302
L.-7646

The Gazette of Pakistan

EXTRAORDINARY
PUBLISHED BY AUTHORITY

ISLAMABAD, MONDAY, NOVEMBER 29, 2010

PART II
Statutory Notifications (S.R.O.)

GOVERNMENT OF PAKISTAN

CABINET SECRETARIAT
(Cabinet Division)
NOTIFICATION
th
Islamabad, the 26 November, 2010
S.R.O.1077(I)/2010.- In exercise of powers conferred by section 27 of the Public
Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the Public
Procurement Regulatory Authority is pleased to make the following regulations,
namely:-
1. Short title and commencement.- (1) These regulations may be called the
Procurement of Consultancy Services Regulations, 2010.

(2) They shall come into force at once.

2. Definitions.-(1) In these regulations, unless there is anything repugnant in the
subject or context:-

(a) “bidding” means the formal procurement procedure under which sealed
bids are invited, received, opened, examined and evaluated for the purpose
of awarding a contract;

(b) “committee” means the Consultant Selection Committee of the procuring

agency;

(c) “consultant” means an individual consultant or a consulting firm as the

case may be;

49
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

(d) “consulting services” means the provision of independent expert advice of

a quality at least equal to the applicable professional standards in relation
to acquisition of goods, services other than consulting services and works;

(e) “expression of interest” means to express willingness for undertaking a

consultancy assignment by providing necessary information required by
the procuring agency for consideration;

(f) “request for proposal” means set of bidding documents sent to short listed
or interested consultants and includes at least:-

(i) letter of invitation;

(ii) instructions to consultants;
(iii) terms of reference;
(iv) evaluation criteria; and
(v) the proposed contract.

(2) The expressions used but not defined in these regulations shall have the same
meanings as are assigned to them in the Public Procurement Regulatory Authority
Ordinance, 2002 and Public Procurement Rules, 2004.
3. Methods for selection of consultants.-The method for selection of consultants
shall be determined by the procuring agency prior to issuance of the request for proposal
from prospective consultants. A procuring agency may utilize one of the following
methods for selection of consultants, namely:-
A. (i) Quality based selection.- This method will be used for highly
specialized and complex assignments, where quality is the only
factor taken into consideration:

Provided that any procuring agency desirous of using quality

based selection as a method of procurement shall record its reasons
and justifications in writing for resorting to this method and shall
place the same on record; and
(ii) Procedure for selection under the quality based selection.-

(a) a request for expression of interest as laid down under

regulation 5 is advertised to invite interested applicants or
firms to contest;

(b) a request for proposals shall be prepared and sent to short-

listed consultants selected following the laid down criteria;

(c) the evaluation of proposals shall be carried out in two stages in

the following manner, namely:-

(i) the technical proposals shall be evaluated and the

procuring agency may discuss technical details, if it may
deem necessary;

50
PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

(ii) the financial proposals of technically responsive or

highest ranked proposal only shall be opened in the
presence of the applicants or their representatives who
may wish to attend the opening session; and

(iii) highest ranked proposal is accepted, if it suits to the

procuring agency in all respects;
B. (i) Quality and cost based selection.-This method shall be used
where high quality is the prime consideration while cost is a
secondary consideration; and
(ii) Procedure for selection under the quality and cost based
selection.-

(a) a request for expression of interest as laid down in regulation 5

is advertised to invite interested applicants or firms to contest;

(b) a request for proposals shall be prepared and sent to short-listed

consultants selected following the laid down criteria; and

(c) the evaluation of proposals shall be carried out in two stages in

the following manner, namely:-

(i) the technical proposals shall be evaluated and the

procuring agency may discuss technical details, if it may
deem necessary;

(ii) the financial proposals of technically responsive

proposals shall be opened in the presence of the applicants
or their representatives who may wish to attend the
opening session; and

(iii) a combined evaluation of technical and financial

proposals shall follow and the applicant with the winning
proposal will be accepted.
C. (i) Least Cost.-This method will only be used for assignments of
standard or routine nature, where well established practices and
standards exist;

(ii) Procedures for Selection under Least Cost Selection.-

(a) following evaluation of technical proposals and opening of

financial proposals, the applicant offering the lowest evaluated
price shall be selected for discussions on technical issues if
deemed necessary; and

51
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

(b) under this method proposals passing the technical score

threshold shall then be treated equally and evaluated on the
basis of cost only;
D. (i) Single Source or Direct Selection.- This method will be used only
in exceptional cases, where it provides clear advantage over
competition in following cases (only), namely:-

(a) for tasks which are natural continuation of previous

assignment and where continuity of technical services is
unavoidable;

(b) repeat orders as provided under sub-clause (iv) of clause (c) of

rule 42 of Public Procurement Rules, 2004;

(c) in cases of emergency as provided under sub-clause (v) of

clause (c) of rule 42 of Public Procurement Rules, 2004; and

(d) where only one consultant is qualified or has experience of

exceptional worth with reference to clause (c) or (d) of rule 42
of the Public Procurement Rules, 2004; and
(ii) Procedures for Selection under Single Source Selection.-

(a) the justification for single source selection method shall be

examined in the context of the overall interests of the procuring
agency to ensure economy and efficiency and provide equal
opportunity to all eligible consultants, therefore, the decision
to use single source selection method shall be approved in
writing by the principal accounting officer, concerned on
recommendation by a Committee; and

(b) the request for proposals or TOR, as the case may be, shall be
issued to the selected consultant and the selected consultant
shall be requested to submit a technical and financial proposal
upon the receipt of which discussions shall be held between the
proposal evaluation committee and the selected consultant and
all aspects of its proposal, whether technical or financial, shall
be discussed together in order to reach an agreement or contract
etc; and
E. (i) Fixed Budget.-This method shall be used only when the
assignment is simple, can be precisely defined and when the budget
is fixed. The request for proposals shall indicate the available
budget. Proposals that exceed the indicated budget shall be
rejected. The ranking shall be based only on evaluation of technical
proposals of the qualified bidders.

52
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

(ii) Procedures for Selection under Fixed Budget.- The Procedures

to be followed for the selection under fixed budget method shall be
the same as for the quality and cost based method, with the
following exceptions, namely;

(a) the request for proposals shall indicate the available budget
including taxes and ask the applicants to provide, in separate
envelopes, their best technical and financial proposals within
the budget;

(b) the terms of reference shall be as complete as possible to make

sure that the budget is sufficient for the consultants to perform
the expected tasks;

(c) the request for proposals shall require the applicants to provide
breakdowns of their costs for the different activities with a
provision that applicants who decline to provide the
breakdown may risk the rejection of their proposals; and

(d) the request for proposals shall state that, following opening of
proposals, all proposals that exceed the indicated budget shall
be rejected and the applicant who has submitted the highest
ranked technical proposal among the rest shall be selected and
invited to discuss further details for concluding the contract.
4. Criteria for eligibility of consultants.-The procuring agency shall not hire a
consultant for an assignment in which there is possibility of conflict of interest. If a
consultant has been engaged by the procuring agency to provide goods or works for a
project, it shall be disqualified from providing consulting services for the same project.
Similarly, a consultant shall not be hired for any assignment which by its nature, may be
in conflict with another assignment of that consultant.
5. Expression of interest.- (1) A request for expression of interest shall be
advertised by giving applicants at least fifteen calendar days for national competition
and thirty calendar days for international competition to submit their interest to provide
consultancy services.

(2) The expression of interest shall contain at least the following information,
namely:-

(a) the name and address of procuring agency;

(b) an appropriate description of the assignment providing scope of the

intellectual and professional services required;

(c) deadline and place of the submission of the expression of interest; and

(d) evaluation criteria required to be followed.

53
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

6. Criteria for short-listing of consultants.- (1) Whenever short-listing is

deemed necessary, the procuring agency shall predetermine a criteria for short listing.
Except for single source, there will normally be a minimum of three consultants in the
shortlist, but there is no upper limit for number of candidates to be short listed. However,
if less than three candidates apply, their proposals may be considered on merit.

(2) The procuring agency while engaged in short-listing of consultants will take
into consideration the following factors, namely:-

(i) qualification;
(ii) experience; and
(iii) any other factor that a procuring agency may deem relevant, not
inconsistent with these regulations or Public Procurement Rules, 2004.

(3) All applicants shall be informed whether or not they have been short-listed.
7. Criteria for prequalification of consultants.-(1) Whether short listing is done
or not, the procuring agency may engage in prequalification of consultants in case of
complex assignments.

(2) The procuring agency while engaged in prequalification of consultants will take
into consideration the following factors, namely:-

(i) qualification;
(ii) general experience;
(iii) specific experience;
(iv) past performance; and
(v) any other factor that a procuring agency may deem relevant, not
inconsistent with these regulations or Public Procurement Rules, 2004.
8. Request for proposals.- (1) The procuring agency shall use a request for
proposals for seeking proposals from the consultants whether short listed or prequalified
or not, which shall include the following, namely:-
(a) Letter of Invitation.-The letter of invitation shall mention the name and
address of the procuring agency and shall state the intention of the
procuring agency to enter into a contract for provision of consulting
services.
(b) Instruction to consultants.- The 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.-Terms of reference shall unambiguously define the
objectives, goals and scope of the assignment besides conditions of
contract. Terms of reference shall list the services and surveys necessary to
carry out the assignment and expected outputs.

54
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

(d) Evaluation criteria.-Except as otherwise provided, the evaluation of

proposals shall be carried out giving due consideration to quality and cost.
(e) Type of contract.- The procuring agency, depending on the
circumstances, may use one of the following types of contract, namely:-

(i) lump sum contract will be used mainly for assignments in which the
content, duration of the services and the required output are
unambiguously defined;

(ii) time based contract will be used when it is difficult to define the
scope and the length of services;

(iii) hourly or daily rates based contract will be used for small projects,
especially when the assignment is for less than a month; and

(iv) any other contract based on combination of the above and including
out of pocket expenses, where required.
(f) Proposed contract format.-The procuring agencies shall propose a draft
specimen contract to be entered into with the successful bidder.
(g) Special Provisions.- The procuring agency may specify any other
requirement related to the assignment or contract etc. where required.

(2) The procuring agency shall invite the prospective consultants to submit their
technical and financial proposals in separately sealed envelopes. The procuring agency
shall give deadline for submission of proposals. Consultants shall be given adequate
time to prepare their proposals which shall be in accordance with response time
stipulated under rule 13 of the Public Procurement Rules, 2004.
9. Selection Committee.- (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.

55
 PROCUREMENT OF CONSULTANCY SERVICES REGULATIONS, 2010

10. Extent of Negotiations or discussions.- The Committee of the procuring

agency may negotiate with the highest ranked bidder regarding methodology, work plan,
staffing and special conditions of the contract. The Committee shall not permit
substitution of key staff, unless both parties agree that undue delay in selection process
makes such substitution unavoidable. In case of failure of negotiations with highest
ranked bidder, the Committee may invite the next ranked bidder for such negotiations or
discussions. Negotiations are to be carried out by committee and its minutes shall be
recorded. Negotiations by a single person Committee shall never be allowed:

Provided that negotiations shall not seek changes in the rates quoted by the bidder in
accordance with restriction imposed on financial negotiations under Rule 40 of the
Public Procurement Rules, 2004.
11. Professional liability of consultants.- (1) The consultant selected and awarded
a contract shall be liable for consequence of errors or omissions on its part. The extent of
liability of the consultant should be incorporated in the contract and in no case should it
be less than remunerations excluding the out of pocket expenses, nor should the liability
exceed twice the remunerations.

(2) The procuring agency may demand insurance on part of the consultant to cover
its liability under sub-regulation (1) and necessary costs shall be borne by the consultant
which shall be reimbursed by the procuring agency as out of pocket expenses by the
consultant.

(3) The consultant shall be held liable for all losses or damages suffered by the
procuring agency on account of any misconduct and unsatisfactory performance by the
consultant in performing the consulting services.
12. Inconsistency.-The Public Procurement Rules, 2004 and these regulations are
to be taken as mutually explanatory of one another but in case of in consistency, the
Public Procurement Rules, 2004 shall take precedence over these regulations.

[[Link].2/1/2009/[Link]]

Sd/-
MUHAMMAD FAROOQ
Section Officer (RA-III)

56
PPRA Instructions

PPRA
 PPRA INSTRUCTIONS

INTEGRITY PACT

DECLARATION OF FEES, COMMISSION AND BROKERAGE ETC. PAYABLE BY

THE SUPPLIERS OF GOODS, SERVICES & WORKS IN CONTRACTS WORTH
RS.10.00 MILLION OR MORE

Contract Number:__________________________ Dated: _______________

Contract Value: __________________________
Contract Title: __________________________

[Name of Supplier] hereby declares that it has not obtained or induced the procurement of any
contract, right, interest, privilege or other obligation or benefit from Government of Pakistan or
any administrative subdivision or agency thereof or any other entity owned or controlled by it
(GoP) through any corrupt business practice.

Without limiting the generality of the foregoing [Name of Supplier] represents and warrants
that it has fully declared the brokerage, commission, fee etc. paid or payable to anyone and not
given or agreed to give and shall not give or agree to give to anyone within or outside Pakistan
either directly or indirectly through any natural or juridical person, including its affiliate, agent,
associate, broker, consultant, director, promoter, shareholder, sponsor or subsidiary, any
commission, gratification, bribe, finder's fee or kickback, whether described as consultations fee
or otherwise, with the object of obtaining or inducing the procurement of a contract, right,
interest, privilege or other obligation or benefit in whatsoever form from GoP, except that which
has been expressly declared pursuant hereto.

[Name of Supplier] certifies that it has made and will make full disclosure of all agreements
and arrangements with all persons in respect of or related to the transaction with GoP and has not
taken any action or will not take any action to circumvent the above declaration, representative or
warranty.

[Name of Supplier] accepts full responsibility and strict liability for making and false
declaration, not making full disclosure, misrepresenting fact or taking any action likely to defeat
the purpose of this declaration, representation and warranty. It agrees that any contract, right
interest, privilege or other obligation or benefit obtained or procured as aforesaid shall, without
prejudice to any other right and remedies available to GoP under any law, contract or other
instrument, be voidable at the option of GoP.

Notwithstanding any rights and remedies exercised by GoP in this regard, [Name of Supplier]
agrees to indemnify GoP for any loss or damage incurred by it on account of its corrupt business
practices and further pay compensation to GoP in an amount equivalent to ten time the sum of any
commission, gratification, bribe, finder's fee or kickback given by [Name of Supplier] as aforesaid for
the purpose of obtaining or inducing the procurement of any contract, right, interest, privilege or
other obligation or benefit in whatsoever form from GoP.

__________________ __________________
[Buyer] [Seller/Supplier]

64
 PPRA INSTRUCTIONS

No.F.3(7)/DD-II/PPRA/2010
Government of Pakistan
Public Procurement Regulatory Authority
(Cabinet Division)
FBC Building, Sector G-5/2

Hafeez ur Rehman
Managing Director
Tele:051-9224824
Fax: 051-9224823 Islamabad, April 13, 2010

Subject: AWARD OF CONTRACTS AND PUBLIC PROCUREMENT REGULATORY

AUTHORITY

My dear Secretary,

Raison d'etre of regulatory regime mainly is to:

i) ensure balancing of interest of all stakeholders in a transparent manner;

ii) provide level playing field to all competitors;
iii) establish sustainable regulatory arrangements which carry credibility with
investors and perceived as legitimate and fair in the eyes of the public, and deliver
greater efficiency for the economy as a whole;

2. With growing awareness of public procurement law and rules, government organizations
exercise more care and caution in award of contracts. Although PPRA has now a sustainable capacity
building institute in the form of National Institute of Procurement along with daily monitoring and
mentoring, yet Ministries seek more comfort by attempting to involve PPRA in line clearing functions
in award of contracts. This is neither provided in law, rules or policy laid down by the Board.

3. Since conception PPRA's role has been unambiguous, initial Assessment Report by the WB
set the following in stone:

“Creating a small, professionally staffed, independent regulatory agency to develop the

procurement framework, with functions which are mainly confined to policy,
documentation, development of rules, etc. and not to include line clearance functions for
awarding of contracts”.

4. This was periodically reiterated by the Board including the last direction contained in the 6th
Board meeting dated 12th February, 2008.

5. Requesting / directing PPRA to be a part of line functions is in conflict with PPRA's raison
d'etre, policy, practice, level playing field, balance of stakeholder interest, grievance handling,
neutrality, transparency and fairness.

6. This is to humbly request you to keep this in mind and direct all concerned. Thanking you in
anticipation.

Yours sincerely,

Sd/-
(Hafeez ur Rehman)
All Federal Secretaries

72
 PPRA INSTRUCTIONS

No.F.7(35)/DD-I/PPRA/2010
Government of Pakistan
Public Procurement Regulatory Authority
(Cabinet Division)
FBC Building, Sector G-5/2

Hafeez ur Rehman
Managing Director
Tele:051-9224824
Fax: 051-9224823 Islamabad, the 22nd April, 2010

Subject: TENDER NOTICE ON PPRA WEBSITE AND ITS PROOF FOR AUDIT
AND RECORD

Dear

Rule 12(4) of Public Procurement Rules, 2004 stipulates that: -

“A procuring agency utilizing electronic media shall ensure that the

information posted on the website is complete for the purposes for which it has
been posted and such information shall remain available on that website until
the closing date for submission of bids”.

2. Beyond the closing date, web based advertisement / tender notice shall remain
available on PPRA website for a period of forty (40) days.

3. It would be prudent to download / print the advertisement for the purposes of

record and audit. In case of need, beyond the period of 40 days, when the advertisement /
tender notice stands withdrawn from our website we shall be obliged to provide the same
on a request in writing.

With best regards,

Yours sincerely,

Sd/-
(Hafeez ur Rehman)

All Federal Secretaries / Procuring Agencies

73
 PPRA INSTRUCTIONS

No.F.3(12)/DD-II/PPRA/2010
Government of Pakistan
Public Procurement Regulatory Authority
(Cabinet Division)
FBC Building, Sector G-5/2

Hafeez ur Rehman
Managing Director
Tele:051-9224824
Fax: 051-9224823 Islamabad, July 23, 2010

Subject: PRICE MATCHING

My dear Secretary,

Time and again public procuring entities have been agitating the lack of legality
in matching prices with the lowest evaluated bidder in the event the bidder fails to
execute the contract as per spelled out requirements. Following laws forbid price
matching:-

2. Price matching is a form of negotiation which is prohibited under Rule-40 of the

Public Procurement Rules, 2004.

3. United Nations Commission on International Trade Law (UNCITRAL) under

Article 35 states that “no negotiations shall take place between the procuring entity and a
supplier or contractor with respect to a tender submitted by the supplier or contractor”.

4. Section 3 (f) of the Competition Ordinance, 2010 while discussing abuse of

dominant position also indicates that "predatory pricing, driving competitors out of a
market, prevent new entry and monopolize the market” prevent, restrict and reduce
competition.

5. All procuring agencies under your administrative control be advised to abstain

from price matching or seeking permission to do so, alternate methods of procurement
dilated in Public Procurement Rules 2004 may be consulted in relevant conditions.

With best regards,

Yours sincerely,

Sd/-
(Hafeez ur Rehman)
Military Secretary to the President,
President's Secretariat (Personal),
Aiwan-e-Saddar,
Islamabad

74
Frequently Asked Questions

PPRA
 FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS

Question No. 1
What is the minimum response time for procurement advertisements?
Answer:
In terms of Rule 13 of the Public Procurement Rules 2004 the minimum response time
shall not be less than fifteen (15) days for national competitive bidding and thirty (30)
days for international competitive bidding. The Procuring Agencies can increase the
response time depending upon nature of procurement.

Question No. 2
How can procuring agency calculate response time?
Answer:
The response time shall be calculated from the date of first publication of the
advertisement in newspaper or posting on the PPRA's website. If the advertisement is
mandatory to advertise in both print and PPRA website in terms of Rule 12 of Public
Procurement Rules, 2004 the response time shall be calculated from the day of its first
publication in the newspaper.

Question No. 3
Can procuring agency fix amount for bid security?
Answer:
In terms of Rule 25 of the Public Procurement Rules 2004 the procuring agency may
require the bidders to furnish a bid security not exceeding five percent of the bid price.
The procuring agencies cannot fix the amount on account of bid security.

Question No. 4
Can procuring agency reject bids without assigning any reason?
Answer:
No procuring agency can reject any bid without a reason. In terms of Rule 33(1) of the
Public Procurement Rules 2004 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.

Question No. 5
What course of action will be adopted by the procuring agency when all the bid prices

89
 FREQUENTLY ASKED QUESTIONS

substantially exceed the cost estimates/ market value?

Answer:
The cost of bids are required to be assessed in the light of the evaluation criteria and other
terms and conditions set forth in prescribed bidding documents. Keeping in view
principles of procurements as given in rule 4, a procuring agency shall take a decision on
acceptance of the bid. However, if it does not found feasible, procuring agency is
allowed to cancel all the bids prior to acceptance as provided under Rule-33 of the Public
Procurement Rules, 2004 and invoke Rule 34 of the said Rules for re-bidding.

Question No. 6
Whether the procuring agency can enter into negotiations with the bidders for the
reduction in the prices or to call for new bids?
Answer:
Negotiations with the bidder having submitted the lowest evaluated bid or with any other
bidder are not allowed as provided under Rule 40 of Public Procurement Rules, 2004.

Question No. 7
Whether negotiation if allowed to be made with all the bidders or only with the lowest
evaluated bidder?
Answer:
Negotiations with the bidder having submitted the lowest evaluated bid or with any other
bidder are not allowed as provided under Rule 40 of Public Procurement Rules, 2004.

Question No. 8
Many procuring agencies are signing Memorandum Of Understanding (MOU) with the
Transparency International Pakistan empowering the latter to scrutinize contracts to be
signed by them. Is this practice not an overlap of PPRA mandate by a Civil Society
Organization and is it in line with PPRA Ordinance 2002 and PP Rules, 2004?
Answer:
Only PPRA has been mandated by its Ordinanace-2002 to monitor and regulate the
application of law and rules relating to public procurement of all goods, services and
works. PPRA does not indulge in line clearance functions nor this function is covered by
law or has been outsourced by PPRA to any Civil Society Organization in /outside the
country. Public sector organizations entering into MOU entailing line clearance function
do so at their own risk and cost.

90
 FREQUENTLY ASKED QUESTIONS

Question No. 9
How to upload tender documents at PPRA's website?
Answer:
Following methods are used for uploading of tenders on PPRA website:-
1. Online:
User ID and Password can be provided on request at email address
info@[Link] for online tender submission.

2. By Post:
Soft copies of Tender documents can be sent by Post/ Courier to “IT
section Public Procurement Regulatory Authority, 1st Floor FBC
Building G-5/2 Islamabad”

3. By-email:
Tender documents can be sent as attachment with file extension “DOC”
(MS Word File), “JPG” (Image File), “PDF” (Acrobat Reader File) at
email address info@[Link]

Question No. 10
It is not clear whether all annual requirements if known would have to be advertised in
advance on PPRA's website or just the main items.
Answer:
Indicative requirements of annual procurement should be advertised under Rule 9, at
macro level, on PPRA's website as well as on the website of the organization concerned
for advance information of prospective bidders. Detailed advertisement for processing
the procurements should subsequently be made, as required from time to time, in
accordance with Rule 12. PPRA has already devised a proforma for this purpose as
provided at page 83.

Question No. 11
If a tender for procurement of goods over one hundred thousand rupees and up to the
limit of two million rupees uploaded on Authority's website, would there be any
compulsion on the procuring agency to advertise it in the print media also?
Answer:
If a tender for procurement of goods, services and works costing over rupees one
hundred thousand and up to the limit of two million rupees has been launched on
Authority's website, it is not mandatory to put the advertisement on print media.

91
 FREQUENTLY ASKED QUESTIONS

Question No. 12
i. If only one tender/bid is received in response to a tender notice advertised
in both or one of the media (Authority's website/ print media), should the
single tender be accepted or readvertised the tender.
ii. How to compare the only one bid received by a procuring agency?
iii. If no tender/ bid is received against a requirement, what method of
procurement is recommended to be adopted (Re-advertisement or Direct
Contracting)

Answer:
i. Public Procurement Rules, 2004 don't put any limit on number of tenders/
bids received in response to tender notices provided that the
procurement opportunity has been advertised in the prescribed manner.
The single bid may be considered if it meets the evaluation criteria
expressed in tender notice and is not in conflict with any other rules,
regulations or policy of the Federal Government. However the procuring
agency should make a decision with due diligence and in the light of Rule 4
“Principles of Procurements”.
ii. 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:-
a. The comparison of price of the goods, works or services if procured
during the current financial year.
b. Market price of the goods, works and services to be procured.
c. In case abnormal increase in prices is observed, the procuring
agency may like to re-advertise the procurement opportunity, if
time permits.
iii. Re-advertisement would be a preferred option. Direct contracting could
also be used provided it meets the prescribed condition for direct
contracting.

Question No. 13
Under the Rules if preference was allowed to a domestic or national supplier/contractor,
magnitude of price preference to be accorded should be mentioned. However, a
clarification whether the magnitude of price preference should be in figure or the
percentage, needs to be obtained.
Answer:
Preference to domestic or national suppliers or contractors should be provided in

92
 FREQUENTLY ASKED QUESTIONS

accordance with policies of the Federal Government. The magnitude of preference,

presently in vogue-but for goods of domestic value addition, has been specified in para 3
of the Ministry of Commerce S.R.O 827(1)2001 dated 3rd December, 2001 as amended
on 28.09.2002. This S.R.O can be downloaded from PPRA's website.

Question No. 14
a) It has been observed that financial limits for procurement under sub rules
(a) & (b) of rule 42 are not sufficient. These limits need to be reviewed.
b) Moreover, under sub rule c (iv) a procuring agency may engage in direct
contracting for repeat orders not exceeding fifteen percent of original
procurement. It is not clear how this rule could be applied in case of
procurement of spare parts / equipment.
Answer:
a) The sub rule (a) of rule 42 and sub rule (b) of rule 42 are provided with a
similar proviso which read as “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”. Accordingly the procuring agencies desirous to use /
invoke the proviso may send a proposal for consideration of PPRA
Board.
b) Procurement of spare parts has been dealt with separately under Rule
42(c)(i) which reads as “A procuring agency shall only engage in direct
contracting if the following conditions exist, namely:-
The procurement concerns the acquisition of spare parts or supplementary
service from original manufacturer or supplier:

Provided that the same are not available from alternative sources;

In case of procurement of spare parts/ equipment through open

competitive bidding when spare parts of required specifications are
available from multiple sources, repeat orders not exceeding fifteen
percent of the original procurement of the spare parts/ equipment may be
placed under Rule 42(c) (iv)”.

Question No. 15
Which type of record is to be maintained for audit?
Answer:
Following documents may be kept for maintenance record of procurement by the
procuring agencies for requirements of audit:

93
 FREQUENTLY ASKED QUESTIONS

i. Detail with regard to the originating of demand. It explains the nature

quantity of the items to be produced. It should be supported by justification
report.
ii. Purchase requisition may be maintained. It shows specification as well as
quantity of the items to be produced. It also contains the name / names of
the consignee, to whom the material is to be delivered.

Tender documents / file

iii. It includes consolidation of tender documents, preparation of tabulation

statements, analysis of sales, comparative statement, evaluation of tender,
documents by the technical committee, approval of the competent
authority.
iv. Purchase order file be maintained. It includes the documentary detail of the
quantity ordered, rate accepted and delivery period, inspection of material,
chemical analysis, acceptance of material on basis of suitability report
from the consignee and finally, delivery of material to the ultimate
consignee.
v. Material receipt note be maintained, it shows description and quantity of
material accepted. It is an authority for payment.
vi. Contractor bills:- These show detail of material supplied and must always
be accompanied by original copy of material, Receipt Note and original
sales Tax Invoice.
vii. Budget file containing appropriation for the purchase.
viii. File relating to sanction / approval of competent authority to make the
purchase and make payments and related documents, necessary for audit
including need assessment, actual quantities demand, difference if any,
from items purchased and those required along with justification.
ix. Record of goods, services and works to be planned / procured in a year
before publishing advertisements.
x. Record of spare parts / equipments or services procured from the original
manufacturer or record of goods, services and works actually procured in a
particular year.
xi. Copies of tenders / quotations invited to make the purchases along with
specifications.
xii. In case of limited tenders, sealed quotation, comparatives statements and
invitation record.
xiii. Record showing he particulars of bidders who purchased tender
documents, deposited bids and participated in the tendering process.
xiv. Record of bidders who deposited bid security to the procuring
agency.

94
 FREQUENTLY ASKED QUESTIONS

xv. Pre-qualification record of suppliers / contractors.

xvi. Technical & Financial bid evaluation reports of each type of
procurement.
xvii. Newspapers in which advertisements published against each
procurement.
xviii. Record of cash deposit receipt, received from the bidders.
xix. Stock Register containing the entries of purchase and specification of
items purchased.
xx. Register showing details of items procured services made as well as
work done.
xxi. The record pertaining to requisitions made by the department as well
as approval of the competent authority for said procurements.
xxii. Record of black-listed suppliers / contractors.
xxiii. Purchase committee should also keep a record of evaluation of input
cost of consumable stores on the basis of project usage in addition to
the cost of the equipment while evaluating the bids.
xxiv. Delivery of challans of suppliers / contractors.
xxv. Instructions to bidders.
xxvi. Proceedings of committees.
xxvii. Final approval of competent authority for procurement from a
particular bidder at specific rate.
xxviii. Acceptance letter to successful bidders.
xxix. Bank guarantees.
xxx. In case of imported goods, import invoices, inventories, indents,
letter of credit and shipping documents.
xxxi. Issue indents / acknowledgments.
xxxii. Pre-qualification record of suppliers and contractors.
xxxiii. Inspection rates / laboratory tests and analysis reports of samples
provided by suppliers.
xxxiv. Tender opening committee should record their proceedings and if
feel necessary negotiation be carried out with the different suppliers /
contractors.
xxxv. Delegation of financial powers.
xxxvi. Codal requirements.
xxxvii. Contractor profile.
xxxviii. Firms registered with sales tax department.
xxxix. Test reports.
xl. All latest instruction / direction / discretion / rules / regulations for
procurement.

95