Enhancing Procurement Efficiency: Litigation Issues, Standard Bidding Documents and eGP

1. Enhancing Procurement Efficiency: Litigation Issues, Standard Bidding Documents and eGP • Shakti Prasad Shrestha March 21, 2018

2. Content: • Contract Management Provisions (Consulting Service) • Litigation issues • PPMOStandard Bidding Documents for Works, Goods and Consulting Services • Government Electronic Procurement System (eGP) • General Procurement Related Issues

3. Contract Management Provisions (Consulting Service)

4. Contract Management • Effectiveness of Contract • Extension of Time (EoT) • Termination of Contract • Insurance, professional liability insurance • Proprietary Rights • Replacement/Removal of Key Experts • Assistance and Exemptions

5. Contract Management (Contd..) • Access to Project Site/Services, Facilities and Property of the Client/Counterpart Personnel • Payment Obligation • Interest on Delayed Payments • Blacklisting • Liquidated Damages • Claims and Settlement of Disputes • Resolution of Disputes

6. Litigation issues

7. Litigation issues Litigation meaning: • Litigation is legal method for settling controversies or disputesbetween PE and contracting parties. • The process of taking legal action • The process of taking a case to a legal Authority so that a judgment can be made. • Where dissatisfaction between Parties could not be settled amicably.

8. Litigation issues (Contd..) • Litigation issues in Consulting service is rear as compared with the Works Contract. • Mainly issues are relating with: • Liquidated Damages • Termination of contract • Blacklisting

9. PPMOStandard Bidding Documents for Works, Goods and Consulting Services

10. PPMO Standard Bidding Documents: • Procurement of Goods (NCB), • Procurement of Goods (NCB) Nepali version, • Procurement of Goods (ICB) • Procurement of Works (NCB) 20 M 1 Billion (two envelope) • Procurement of Works (NCB) 2 M 20 M (Non-qualification) • Procurement of Works (NCB) 2 M 20 M (Qualification)

11. PPMO Standard Bid Documents (Goods): A Bid Document (Goods) normally includes: • Invitation for Bids • Instructions to Bidders • Bid Data Sheet • Evaluation and Qualification Criteria • Bidding Forms • Schedule of Requirements • Contract Forms • General Conditions of Contract • Special Conditions of Contract • Contract Forms

12. PPMO Standard Bid Documents (Works): A Bid Document (Works) normally includes: • Invitation for Bids • Instructions to Bidders • Bid Data Sheet • Evaluation and Qualification Criteria • Bidding Forms • Works Requirements, • Bill of Quantities • General Conditions of Contract • Special Conditions of Contract • Contract Forms

13. PREPAREATION OF BIDDING DOCUMENTS: BIDDING DOCUMENTS SHALL CLEARLY SPECIFY DETAILS OF INFORMATION TO BE PROVIDED TO THE BIDDER. • SCHEDULE OF REQUIREMENTS/WORKS REQUIREMENTS, • PROCEDURES OF BUYING BD, SUBMISSION, WITHDRAWALS, MODIFICATIONS • ELIGIBILITY REQUIREMENTS, • QUALIFICATION REQUIREMENTS, • CONTRACT CONDITIONS

14. Preparation of Bidding Document: BIDDING DOCUMENTS SHALL INDICATE: • NATURE & TIME OF PROCUREMENT, • TECHNICAL SPECIFICATIONS, • CONTRACTUAL TERMS, • BIDDERS’ QUALIFICATION REQUIREMENTS, • DETAILS OF SITE VISITS AND PRE-BID CONFERENCE, • INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF BIDS, • HOW TO SHOW PRICES AND CURRENCIES,

15. Preparation of Bidding Document: –Contd… • PREFERENCE FOR ANY DOMESTIC GOODS AND WORKS, GROUPING OF LOTS IF ANY, • WHETHER ALTERNATIVES ARE ACCEPTABLE, • VALIDITY OF BIDS, • BID SECURITY & PERFORAMCE AND OTHER SECURITIES, • CONFLICT OF INTEREST RESTRICTIONS AND ANTI-FRAUD AND CORRUPTION RULES, • APPEAL/CHALLENGE/REVIEW PROCEDURES ON DECISION OF BANK, ETC.

16. Open bid through ICB: • Bid Document in English, • Payment in foreign currency • Bid submission time - at least 45 days • For the supply of Goods - use of INCOTERMS

17. PPMO Standard Consulting Documents (Contd..): • RFP Selection of Consultants (Lump-sum), • RFP Selection of Consultants (Time based), • EOI Document

18. PPMO Standard RFP Documents: A RFP Document normally includes: • Letter of Invitation, • Information to Consultants, • Data Sheet, • Forms to be used in the Technical and Financial Proposals, • Terms of Reference • Form of Contract, • General Conditions of Contract, • Special Conditions of Contract

19. PPMO Standard EOI Documents: A EOI Document normally includes: • Request for Expression of Interest, • Instructions for submission of Expression of Interest, • Objective of Consultancy Services or Brief TOR, • Evaluation criteria for EOI Application, • EOI Forms & Formats

20. Government Electronic Procurement System (eGP):

21. Government Electronic Procurement System (eGP):(https://www.bolpatra.gov.np/egp)

22. Legal Framework: • Public Procurement Act, 2063 (PPA) has provision to use Electronic Communication (ICT) for public procurement transaction to achieve the objective of public procurement. • Public Procurement Regulations, 2068 (PPR) mandated PPMO to develop, operate and manage single and national e-GP system.

23. Amendment in PPR Rule No 146:

24. Notice on Gazette for the use of e-GP System

25. Notice on Gazette for the use of e-GP System (Contd..)

26. Functional Coverage of National e-GP System

27. Stakeholders of e-GP System:

28. General Procurement Related Issues

29. General Procurement Related Issues: • Procurement Unit in PE is not effective, • No effective bid preparation, • Cartelling, • Limiting competition demanding high qualification criteria, • Bid evaluation not in accordance with pre-disclosed criteria

30. General Procurement Related Issues (Contd..): • Errors in the evaluation process • No adequate trainings, • No Guidelines, • Lack of compliance of PP legislation, • Increase in cost and time, • Decrease in quality of works, • Less importance in contract management

31. Thank You For Your Attention Welcome to Your Querries