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PPR-2008

Welcome Mohd. Sadiqul Haque Deputy Director Planning & Development (Attached) & Project Director Department of Social Services. Cell # 01552361361, 01708414021 E-mail: sadiqulh@yahoo.com. PPR-2008. Presented Topic. Some Important Features of PPR-2008. Total Rule-130 Chapter-9 Schedule-XIV.

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PPR-2008

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  1. WelcomeMohd. Sadiqul HaqueDeputy Director Planning & Development (Attached)&Project DirectorDepartment of Social Services.Cell # 01552361361, 01708414021E-mail: sadiqulh@yahoo.com Sadique_DD & PD

  2. PPR-2008 Presented Topic Sadique_DD & PD

  3. Some Important Features of PPR-2008 • Total Rule-130 • Chapter-9 • Schedule-XIV Sadique_DD & PD

  4. Procurement: Some important Definitions regarding PPR-2008 Procurement is the purchasing, hiring or obtaining of goods, works and services by any contractual means. Sadique_DD & PD

  5. Public Procurement : Public procurement means procurement by Procuring Entities using public funds. Sadique_DD & PD

  6. Public fund: “Public Fund” means any funds allocated to a procuring Entity under Government budget, or loan, grants and credits placed at the disposal of a Procuring Entity through the Government by the development partners or foreign states or organizations. Sadique_DD & PD

  7. Procuring Entity : • Procuring Entity means those institutions who are involved in use of public fund for procurement Sadique_DD & PD

  8. Head of the Procuring Entity (HOPE): “Head of the Procuring Entity” means the Secretary of a Ministry or a Division, the Head of the Government Department or Directorate; or the Chief Executive, by whatever designation called, of a local Government agency, an autonomous or semi-autonomous body or a corporation, or a corporate body established under the Companies Act; Sadique_DD & PD

  9. Approving Authority : “Approving Authority” means the authority which, in accordance with the Delegation of Financial Powers, approves the award of contract for the Procurement of Goods, Works or Services; Sadique_DD & PD

  10. Major Components of Procurement: • Goods • Works • Services Sadique_DD & PD

  11. Procurement of goods: • It covers the purchase or lease, rental or hire purchase including related services incidental to the goods. Sadique_DD & PD

  12. Procurement of works: • It covers all works related to construction, reconstruction or maintenance of building or structure or any other works corresponding to the requirements. Sadique_DD & PD

  13. Procurement of Services: • It covers services of an intellectual and advisory nature. Sadique_DD & PD

  14. The Public Procurement Regulation-2003 The Public Procurement Act-2006 The Public Procurement Rules-2008 Sadique_DD & PD

  15. Objectives: Objectives of the PPR 2008 are to promote: • Efficiency; • Best value for money; • Competition among Tenderers; • Fair and equal treatment to Tenderers • Transparency in the implementation of procurement; • Accountability. Sadique_DD & PD

  16. Scope of Application (Rule-3) • All public procurements except if Government decides in National Interest/Security to use another method • Any organisation under the Companies Act using Public funds provided from development or revenue budget • DOES NOT apply to concession contracts Sadique_DD & PD

  17. International Obligations (Act-3) Where Development Partners have conflict, the Agreement will over-ride the Rules Sadique_DD & PD

  18. Formation of the Committees (Rules:7-8) • TOC-3 members, I from TEC & 2 from PE • TEC/PEC-Minimum 5,maximum 7 members, at least 2 external members (Pls. beware of the exceptions!) Sadique_DD & PD

  19. Eligibility and Non-discrimination (Rule-47) • Tenderers will not be excluded from participation on the basis of nationality, race or any other criterion not involving their qualification. • Except: • If engaged in corrupt, fraudulent, collusive or coercive practices as defined in Rule127. • If the government otherwise determines. Sadique_DD & PD

  20. Chairperson of TEC (Rule-10) • Generally an officer immediate below the rank of Approving Authority Sadique_DD & PD

  21. Methods of Procurement for Goods & Works: • Open Tendering Method • Limited Tendering Method • Direct Procurement Method • Two stage Tendering Method • Request for Quotation Method • One Stage Two Envelope Method Sadique_DD & PD

  22. Quality and Cost Based Selection (QCBS) Selection under Fixed Budget (SFB) Least Cost Selection (LCS) Selection Based on Consultants Qualification (SBCQ) Selection among Community Service Organizations (CSO) Single Source Selection (SSS) Design Contest (DC) Selection of Individual Consultants (IC) Methods of Procurement for Services: Sadique_DD & PD

  23. Tenderers must qualify according to the set criteria: Professional and technical qualifications required Financial capability and status Legal capacity Fulfillment of all obligations in respect of the payment of taxes, contributions, etc. according to relevant national regulations Qualification of Tenderer (Rule-48) Procuring Entity shall: • evaluate the tenders in accordance with the pre-qualification criteria if pre-qualification is done • disqualify any tenderer submitting false information or the submitted tender is substantially incomplete and inaccurate • spell out qualification & evaluation criteria in tender or pre-qualification document • specify in document the nature of supporting evidence required Sadique_DD & PD

  24. The Procuring Entity: Can reject tenders or proposals etc. anytime before acceptance if stated in the TDs. If requested they must give reasons but not justification Rejection of All Tenders, Proposals & Quotations (Rule-33) Rejection may be justified if….. • Tenders, or proposals not substantially responsive • Evidence of lack of competition • Financial tenders substantially exceed estimated budget or market price. Tenders received shall be returned unopened, if the procurement process has been annulled before the tender submission deadline Sadique_DD & PD

  25. Corrupt, Fraudulent, Collusive or Coercive Practices (Rule-127) • No Applicant/Tenderer/Supplier/Contractor/Consultant or any person involved shall engage in: • Corrupt practicei.e. promise of giving gratuity or anything of value to bias the procurement process • Fraudulent practicei.e. misrepresentation of facts • Collusive practicei.e. arrangement between the tenderers to rig the prices • Coercive practicei.e. harming or threatening to harm Procurement proceeding • A tenderer/supplier involved in such practices shall be declared ineligible to participate, may be debarred from participation either indefinitely or a specific period of time. Sadique_DD & PD

  26. Open Tendering Method (R-61 & A-31) • Most preferred method to procure goods + related services; works + physical services • Other methods must be justified on technical and/or economic ground observing the threshold values • Advertisement in the newspapers Sadique_DD & PD

  27. Conditions for use of Limited Tendering Method (R-63, 64 & A-32) • Used when procurement of goods & related services and works & physical services are available only from a limited number of suppliers/ contractors or approved list of contractors/suppliers • Can be used to procure goods and works from the departmental enlisted suppliers/contractors (Tk. 25 lakh for goods and Tk.2 crore for works Sadique_DD & PD

  28. Conditions for use of Direct Procurement Method (R:74 - 82 & A-32) • Only one provider - no threshold • Repeat/additional supply/work – maximum 15% • National disaster-Tk.50 lakh in each case, Tk. 5 crore annual aggregate • Emergency office requirements-Tk.1 lakh ,up to Tk.5 lakh in special case • Goods and related services from Government owned organisations – no threshold • Direct cash purchase- Tk.25 thousand in each case, Tk.5.00 lakh annual aggregate Sadique_DD & PD

  29. Conditions for use of Request for Quotations Method (R:69 - 73 & A-32) For Goods and Services within the threshold values as follows- • Goods: Tk. 2 lakh lakh (Each case); Annual aggregate Tk. 10 • Works: Tk. 5 lakh (Each case) ;Annual Tk. 20 lakh • Goods: Tk. 5 lakh (Each case) ;Annual Tk. 20 lakh • Works: Tk. 10 lakh (Each case); Annual Tk. 40 lakh Revenue Dev. Sadique_DD & PD

  30. Conditions for use of Two Stage Tendering Method (R:65-68 & A-32) • May be used for large, complex and turn-key contracts when precise specification difficult or alternative available Sadique_DD & PD

  31. Conditions for use of One Stage Two Envelope Tendering Method (A-32) • May be used in special case Sadique_DD & PD

  32. Advertisements (R- 90 & A-40) • advertising directly all invitation to pre-qualify or to tender • advertisements in at least one Bangla-language and one English-language national newspaper (wide daily circulation in the country) • advertisements should also be sent to CPTU website for contract above a specific threshold value (Schedule-2) Sadique_DD & PD

  33. Invitation for Tender( Rule-29) The Invitation should contain: • the name and address of the Procuring Entity (PE) • a brief description of the object • how to obtain the tender documents • the place and deadline for submission of tenders • the place and time for opening of tenders • the amount of tender security if applicable Sadique_DD & PD

  34. Provision of Tender Documents: • Available at the same time as the advertisement is released in the newspaper • Price should not exceed the cost of reproduction and delivery • No precondition for sale of the documents • Documents may be displayed in PE’s website but cannot be downloaded for submission. Sadique_DD & PD

  35. Modifications to Tender Documents (Rule-95) • Modifications at any time prior to the deadline for submission by the PE by amendment • Amendment promptly communicated to all tenderers as part of the documentation • Submission deadline can be extended if the amendment is made when less than 1/3rd period for submission remains Sadique_DD & PD

  36. Tender validity and tender security (Rules:19-24) • Validity period must allow for completing the process including contract award (normally 60-120 days) • Under EXCEPTIONAL circumstances Head of Procuring Entity (HOPE) may approve extension • Further extension requires authorization by the next higher authority (Secretary) • Tender security period must be extended if tender validity is extended • The tenderer not agreeing to extend will not be considered further and their security will be returned Sadique_DD & PD

  37. Tender validity and tender security (contd.) • Fixed amount. • Not exceeding 3% of estimated contract value • Valid 28 days beyond the tender validity period • Forfeited: • withdrawn after submission but before tender validity period • does not accept the arithmetical correction • fails to provide performance security • refuse to accept contract award Sadique_DD & PD

  38. Submission and Receipt of Tenders(Rule-96) • Must be in writing, properly marked, duly signed and submitted in sealed envelope to the places and within the deadline stated in Documents • Must be submitted by mail, courier or hand-delivered (submission by telex, facsimile, e-mail not acceptable) • PE will provide receipt if requested • If found open prior to official opening, then tenderer fully responsible • Tenders received after the deadline will be returned unopened. Sadique_DD & PD

  39. Opening of Tenders (Rule-97) • Opened in public immediately after submission deadline in the presence of Tender Opening Committee (TOC) plus tenderers or their authorized representatives (if any) • All present must sign the attendance register • TOS signed by TOC and those present. • Tenders, discounts/modifications or withdrawals not read out will not be considered Tender Opening Sheet • Name of Tenderer • Modifications • Discounts • Withdrawals • Presence and amount of Tender Security • Total tender amount Sadique_DD & PD

  40. Examination and evaluation of tenders (Rule-98) • One Tender Evaluation Committee (TEC) per submission at appropriate level for whole process • All members will certify correctness of report and keeping to the Regulations • Estimate provided by PE available to TEC • Certify individually no commercial links with tenderers (impartiality) Sadique_DD & PD

  41. (Rules- contd) • Tenderers can be asked for clarification in writing. No changes in substance permitted and requests and/or corrections must be signed by the Chairperson • Arithmetical errors may be corrected which need tenderer agreement if to be eligible for further evaluation. • ‘Responsive tenders’ (even with ‘minor deviations’) must not materially alter conditions in the STDs. • No minimum number of ‘Responsive tenders’, even SINGLE tender can be processed. Sadique_DD & PD

  42. (Rules- contd) • A tender will be rejected when: • the tender is substantially ‘Non Responsive’ • the tenderer does not accept a correction to an arithmetical error • the tenderer has failed to demonstrate qualifications required Sadique_DD & PD

  43. (Rules- contd) • Responsive tenders only evaluated for Value for Money • Lottery selection NOT ALLOWED (except LTM) • If successful tender is higher than the budget but within market prices TEC can recommend: • acceptance or, • reduction of scope • If successful tender is significantly higher than the prevailing market price, TEC can recommend: • reduction of scope or, • rejection of all tenders Sadique_DD & PD

  44. Negotiation (Rule-99) • No negotiations with lowest or any other tenderer • A tenderer shall not be required to undertake responsibilities not stipulated in the tender documents, change the price or modify the tender. Sadique_DD & PD

  45. Post-Qualification (Rule-100) • Before recommending the contract award TEC shall determine that the successful tenderer has the capacity to carry-out the contract. • The criteria to be met for post-qualification must be set out in the tender documents • If the tenderer does not meet the criteria during post-qualification, the tender will be rejected and the next lowest evaluated tender will be assessed and so forth. Sadique_DD & PD

  46. Approval of contract award (Rule-102) • The TEC shall submit the Evaluation Report with its recommendations to the approving authority in time to award the tender within the validity period • All contract awards of Tk 1 crore (Goods/Works) and Tk 50 lakh (Services) or above shall be notified to CPTU for publication on its website Sadique_DD & PD

  47. Notification of Awardand signing of contract (Rule-102) • Successful tenderer to be notified by PE within tender validity period • The Notification of Award will state • Value of the contract, • Amount of the performance security (up to 10% for Goods and 5%-25% for Works on total contract value), and • time allowed for submission of Performance Security 21 days and signing of Contract 28 days • If contract not signed, the PE shall proceed to award the contract to the second lowest evaluated tenderer Sadique_DD & PD

  48. Open Tendering withInternational Competition(Rule-83) • When in the absence of domestic capacity effective competition cannot be obtained • Pre-qualification used where appropriate • Procurement process shall be in accordance with the rules related to international procurement Sadique_DD & PD

  49. Other procurement methods with international competition(Rules:84-87) International competition may also apply to the following procurement methods : • Limited tendering • Two-stage tendering • Request for Quotation • One stage two envelope • Direct procurement Sadique_DD & PD

  50. Service: Conditions for use of RFP method (Rule-103-126) Shall be used for the procurement of intellectual and professional services Sadique_DD & PD

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