The procuring agency shall constitute and notify Procurement Evaluation Committee for each procurement activity, clearly defining its authorization, functions and delegation of powers to evaluate bids or proposals to ascertain that the bids or proposals conforms to the evaluation criteria, specifications, other terms and conditions specified in the bidding documents. The committee shall comprise an odd number of persons, with a minimum of three (3) members, possessing knowledge, skills and expertise relevant to the procurement. Where deemed appropriate, the procuring agency may constitute multiple committees, depending on the nature, complexity, and sensitivity of the procurement.
A Procuring agency may co-opt officials from other procuring agencies to serve as member of the Procurement Evaluation Committee (PEC) or Grievance Redressal Committee (GRC), particularly in cases where the required skills and expertise are not available within the procuring agency. The procuring agency must ensure that co-opted members must have adequate technical knowledge and experience in the relevant field. The PEC, thus constituted, shall be responsible for evaluating Expressions of Interest (EOIs) or pre-qualification, technical and financial proposals in accordance with the predefined evaluation criteria. The co-opted members must not have a conflict of interest and should adhere to confidentiality, impartiality and integrity. As per the PPRA Ordinance, 2002, the Authority & mandate is limited to monitoring and regulating the implementation of procurement laws, rules, and regulations concerning the acquisition of goods, services, works, and the disposal of public assets. PPRA does not engage in procurement operations or provide line clearance functions, and such involvement is beyond the scope of its legal jurisdiction.
In accordance with Clause 18.1 of the General Conditions of the Contract provided in the National Standard Bidding Documents for Procurement of General Goods notified vide S.R.O. 1074(I)/2022 dated July, 20, 2022 it has been explicitly provided that: “The Supplier warrants that the Goods supplied under the Contract are new, unused, of the most recent or current models and that they incorporate all recent improvements in design and materials”. In light of the above provision, the procurement of second-hand, used or refurbished goods is not permissible under the existing procurement regulatory framework. Procuring agencies are required to ensure that only new and unused goods meeting the latest specifications and standards are procured in compliance with the applicable rules and bidding documents.
In case where a procuring agency does not receive any bids despite publishing multiple advertisements, the following recourse actions may be considered: a) Review of Procurement Documents and Requirements: The procuring agency should conduct a thorough review of the bidding documents, specifications, and eligibility criteria to assess whether any overly restrictive conditions or unclear requirements may have deterred potential bidders form participation. b) Market Analysis: A market survey may be conducted to understand the availability of suppliers, market capacity, and reasons for lack of interest. Feedback from industry stakeholders may also be solicited. c) Revision of Scope or Terms: Based on the findings, the procuring agency may revise the scope of work, technical specifications, delivery timelines, or qualification criteria to make the procurement opportunity more practical and attractive without compromising quality and fairness in the procurement process. d) Re-advertisement with Improved Strategy: The procuring agency should re-advertise the procurement with improved outreach, including publication in widely circulated newspapers, online portals, or through pre-bid meetings to clarify bidders’ queries and encourage participation.
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 response time for submission of bids shall be calculated from the date of first publication of the advertisement in newspaper or posting on the PPRA website. However, in case where publication in both print media and on the PPRA website is mandatory in terms of Rule 12 of Public Procurement Rules, 2004 the response time shall be calculated from the day of first publication in the newspaper.
Indicative requirements of annual procurement should be advertised under Rule 9 of Public Procurement Rules, 2004, on Federal PPRA website/ ePADS 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 of Public Procurement Rules, 2004.
The joint ventures are required to register them with PPRA on e-PADS, in addition to the fulfillment of requirements defined by relevant statutory bodies. Moreover, each JV partner has to register individually in the e-PADS as well.
It is the fundamental responsibility of the procuring agency to verify all the documents submitted by bidders, including the registration certificate, experience certificate and bid securities etc., from the relevant issuing authorities prior to award of the contract. Furthermore, in accordance with Rule-18 of the Public Procurement Rules, 2004, the procuring agency is empowered to disqualify a supplier or contractor at any stage of the procurement process, if it is found that the information provided regarding their qualification was false, materially inaccurate, or incomplete.
Yes, the procurement regulatory framework under Public Procurement Rules, 2004 allows for the prequalification process not only for works and services but also for the procurement of goods, where appropriate. Specifically, Rule 15 of the Public Procurement Rules, 2004 provides for the pre-qualification of suppliers and contractors in procurements where the nature and complexity of the goods require such assessment. This is particularly applicable in cases involving large-scale, technically complex, or high-value equipment, where it is essential to ensure that only capable and qualified suppliers participate in the bidding process. The procuring agency may evaluate applicants based on pre-defined criteria (such as technical capability, past experience, financial soundness, etc.), and only those who meet the pre-qualification criteria are then allowed to participate in the subsequent bidding process.
Rule-15 of Public Procurement Rules, 2004 is applicable for the procurement of expensive and technically complex equipment. Since pharmaceutical drugs do not fall under this category, the pre-qualification process under Rule-15 is generally not applicable for such procurements. For the procurement of drugs, single stage - single envelope or single stage - two envelope bidding procedure can be adopted, using the Standard Bidding Document for the Procurement of Therapeutic Goods (pharmaceuticals), available on PPRA website. However, if the drugs are required to be procured on recurring basis, then procuring agency may invoke Rule-16A of Public Procurement Rules, 2004, to carryout procurement through Framework Agreement with pre- qualified suppliers, following the procedure prescribed therein. Under said rule the procuring agency may sign framework agreement with the pre-qualified suppliers for the procurement of drugs.
The procuring agency may require bidders to furnish a fixed amount of bid security, not exceeding five percent (5%) of the estimated value of the procurement, as determined by the procuring agency as specified in the standard bidding documents. Provided that, in cases where the procuring agency does not require a bid security, the bidder shall be required to submit a Bid Securing Declaration in the format prescribed by the Authority in the Standard Bidding Documents.
It is mandatory for the bidder to submit the original hard copy of the Bid Security to the procuring agency at the address specified in the Standard Bidding Documents, prior to the bid opening date and time. Additionally, a scanned copy of the same must be uploaded on the e-PADS as part of the electronic bid submission. Failure to comply with either requirements shall result in rejection of the bid.
It is not necessary for the bidder to submit hard copies of the bid to the procuring agency. In terms of e-Pak Procurement Regulations, 2023, all procuring agencies are under obligation to process.
After promulgation of e-Pak Procurement Regulations, 2023 notified vide SRO 296(I)/2023 dated February 27, 2023, all the procuring agencies are under obligation to carry out all procurement through e-PADS. Moreover, in pursuance of Manner of Advertisement Regulations, 2022 all procuring agencies are under obligation to advertise the bidding documents, duly signed by the authorized person, as prescribed in Rule-23 of the Rules ibid, on the procuring agency or PPRA’s website for the use of bidders. Hard copies of technical and financial proposals are not required, when procurement is being made through e-PADS. However, the bidder is required to submit bid security and performance guarantee to the procuring agency in original (hard copy) as prescribed in the bidding documents.
The Procurement Evaluation Committee (PEC) shall evaluate the bids strictly in accordance with the prescribed evaluation criteria set forth in the bidding documents. The financial bids may be compared with the price estimates prepared by the procuring agency to determine financial conformance in terms of rate reasonability. Additionally, the PEC may examine the financial bids to determine whether the bid submitted by the most advantageous bidder is abnormally low or high, and in line with the provisions specified in the bidding documents. The procuring agency reserves the right to reject all bids prior to acceptance, in accordance with Rule 33 of the Public Procurement Rules, 2004. In order to determine “Abnormally Low Bid” guidelines and procedure has been prescribed in the Standard Bidding Documents for the Procurement of General Goods, available on PPRA website.
In terms of Rule 24 (2) of Public Procurement Rules 2004, it is clarified that “Reservation and Preference” shall be granted to domestic suppliers or contractors only when competing with “International Bidders”, and in accordance with the policies of the Federal Government. Said rule shall be invoked in case of a) works projects; b)certain goods manufactured, mined, extracted and grown in the Islamic Republic of Pakistan, and; c) disposal of certain assets having any potential impact on national security. Accordingly, this rule shall not be invoked in cases where procurement is being carried out through Open Competitive Bidding process limited to national bidders only.
Rule- 25 of the Public Procurement Rules, 2004 provides that the procuring agency may require the bidders to furnish a fixed amount of bid security not exceeding five percent (5%) of the estimated value of procurement, as determined by the procuring agency. The rule is equally applicable to both public and private sector bidders, without any distinction. However, Rule-25 of Public Procurement Rules, 2004, does not specify the method or form of submission of the bid security. Therefore, it is the responsibility of the procuring agency to define the acceptable method(s) for submission of the bid security in the bidding documents.
Rate reasonability should be determined by comparing the bid prices with procurement estimates reflected in the procurement plan, and through a comprehensive market analysis to ensure that price quoted by the single responsive bidder is not abnormally high/low, or inconsistent with the prevailing market conditions. This may include preparing an independent price estimate for the similar goods, works and services. In addition, the recent procurement prices of comparable goods or services by other public sector procuring agencies may also be referred as benchmarks to support a fair and informed assessment of the quoted rates.
In accordance with Rule-33(1) of the Public Procurement Rules, 2004 the procuring agency reserves the right to reject all bids or proposals at any time prior to the acceptance of a bid or proposal. In such cases, the procuring agency shall immediately notify all participating bidders regarding the rejection of bid or proposal. Upon the request of any bidder, the procuring agency shall communicate the reasons for the rejection. However, the procuring agency shall incur no liability for such rejection and is not obligated to justify the grounds for the decision.
In terms of Rule-38B of the Public Procurement Rules, 2004, single responsive bid may be considered by the procuring agency, provided that it meets the prescribed evaluation criteria, complies with the specifications and terms & conditions outlined in the bidding documents, is not in conflict with any provision of the PPRA Ordinance, conforms to the technical requirements, and demonstrates rate reasonableness. However, except in case of an unsolicited proposal, a single bid shall not be entertained in pre-qualification proceedings. The procuring agency must exercise due diligence and ensure that any decision taken aligns with the fundamental principles of procurement such as economy, efficiency, and value for money.
Article 4 of the Constitution of the Islamic Republic of Pakistan, 1973 guarantees that every individual shall be dealt in accordance with law. Furthermore, Article 8 provides that laws inconsistent with or in derogation of fundamental rights shall be void. In addition, Article 199(2) emphasizes that, subject to the Constitution, the right to move a High Court for the enforcement of any of the fundamental rights enshrined in Chapter 1 of Part II shall not be abridged. Moreover, under Rule-48(7) of the Public Procurement Rules, 2004, any bidder aggrieved by the decision of the Grievance Redressal Committee (GRC) has the right to file an appeal before the Authority within thirty (30) days of the communication of the decision, subject to the prescribed fee and in accordance with the procedure notified by the Authority. The decision of the Authority shall be final. Once the procurement contract comes into force, any disputes arising between the contracting parties shall be settled through arbitration, as outlined in Rule 49(1) of the Rules. Furthermore, Rule 49(2) stipulates that the method of arbitration must be provided in the contract, and must not be inconsistent with the laws of the Government. In light of the above constitutional and regulatory provisions, imposing a condition that restricts bidders solely on the basis that they have filed or are filing writ petitions in courts would not be appropriate. Such restriction may conflict with the bidder’s constitutional right to seek judicial remedy and the principles of fairness, transparency, and equality. However, procuring agency may, in the interest of due diligence, seek information from bidders regarding any ongoing or past court proceedings, and may assess their potential impact on the proposed procurement process, provided that such assessment is done in accordance with the principles of fair competition and non-discrimination.
The Authority has notified the standard bidding documents for the procurement of goods, works and services, available on PPRA website. It is the prerogative of the procuring agency to prescribe type of guarantee in the bidding documents. However, there is no bar to seek insurance guarantee from the supplier. In terms of Rule-51 Public Procurement rules have effect notwithstanding anything to the contrary contained in any other rules concerning public procurement.
In accordance with Rule-40 of the Public Procurement Rules, 2004, the procuring agency may engage in negotiations with the successful bidder at the time of contract finalization, without altering the cost or scope of the agreed work or services. These negotiations may focus on aspects such as the methodology, work plan, staffing arrangements, and special conditions of the contract, with the objective of streamlining the execution of the assignment or project.
In accordance with Rule-43 of the Public Procurement Rules, 2004, all procuring agencies are required to ensure prompt payment to suppliers and contractors against their invoices or running bills within the time specified in the contract, which shall not exceed thirty (30) days. Furthermore, Rule 45(2) of the Public Procurement Rules, 2004 stipulates that, except for unsettled claims, which are to be resolved through arbitration, the final payment should be made within the time prescribed in the contract conditions, and in any case, not later than sixty (60) days, in order to facilitate contract closure and final audit.
Rule-38 of Public Procurement Rules, 2004 specifies that the procuring agency while awarding contract (including extension of the contract) shall ensure that the contract is not in conflict with any other law of the land including “Minimum Wages Ordinance, 1961”. During the development of bidding documents, which also contains contract specimen, the procuring agency may include price adjustment clauses in the bidding documents to address any variation in the minimum wages, to avert contract dispute at later stage. Therefore, in pursuance of the increase in minimum wage rate, the parties may invoke price adjustment clause, in accordance with the methodology provided in the contract document.
In accordance with Rule 42(c)(vi) of the Public Procurement Rules, 2004, a procuring agency is not authorized to fix prices on its own. However, it may engage in direct contracting under said rule when the prices of goods, services, or works are fixed by the Government or a duly authorized authority, agency, or body acting on its behalf. This provision applies in cases where the products or services are available at uniform market rates, and conducting a competitive bidding process is unlikely to yield better value for money for the procuring agency.
In terms of Rule 42(c)(vii) of the Public Procurement Rules, 2004, a procuring agency may engage in direct contracting for the purchase of motor vehicles only when the procurement is made from local original manufacturers or their authorized agents, and the purchase is at the manufacturer’s price. The determination of “local original manufacturer” status shall be based on the guidelines and instructions issued by the Ministry of Industries and Production.
Following documents may be kept for maintenance record of procurement by the procuring agencies for requirements of audit. Tender documents/ file i. 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. ii. 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. iii. Material receipt note be maintained, it shows description and quantity of material accepted. It is an authority for payment. iv. 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. v. Budget file containing appropriation for the purchases. vi. 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 justifications. vii. Record of goods, services and works to be planned/ procured in a year before publishing advertisements. viii. Record of spare parts/ equipment or services procured from the original manufacturer or record of goods, services and works actually procured in a particular year. ix. Copies of tenders/ quotations invited to make the purchases along with specifications. x. In case of limited tenders, sealed quotation, comparatives statements and invitation record. xi. Record showing the particulars of bidders who purchased tender documents, deposited bids and participated in the tendering process. xii. Record of bidders who deposited bid security to the procuring agency. xiii. Pre-qualification record of suppliers/ contractors. xiv. Technical & Financial bid evaluation reports of each type of procurement. xv. Newspapers in which advertisements published against each procurement. xvi. Record of cash deposit receipt, received from the bidders. xvii. Stock Register containing the entries of purchase and specification of items purchased. xviii. Register showing details of items procured services made as well as work done. xix. The record pertaining to requisitions made by the department as well as approval of the competent authority for said procurements. xx. Record of black-listed suppliers/ contractors. xxi. Procuring Agency 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. xxii. Delivery of challans of suppliers/ contractors. xxiii. Instructions to bidders. xxiv. Proceedings of committees. xxv. Final approval of competent authority for procurement from a particular bidder at specific rate. xxvi. Acceptance letter to successful bidders. xxvii. Bank guarantees. xxviii. In case of imported goods, import invoices, inventories, indents, letter of credit and shipping documents. xxix. Issue indents/ acknowledgements. xxx. Pre-qualification record of suppliers and contractors. xxxi. Inspection rates/ laboratory tests and analysis reports of samples provided by suppliers. xxxii. Tender opening committee should record their proceedings and if feel necessary negotiation be carried out with the different suppliers/ contractors. xxxiii. Delegation of financial powers. xxxiv. Codal requirements. xxxv. Contractor profile. xxxvi. Firms registered with sales tax department. xxxvii. Test reports. xxxviii. All latest instruction/ direction/ discretion/ rules/ regulations for procurement. i. Details with regard to the originating of demand. It explains the nature and 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.
It is clarified that an amendment has been made to the Public Procurement Regulations, 2008, whereby it has now been notified that all procuring agencies are required to use the Standard Bidding Documents (SBDs) for Works as notified by the Authority. There is no provision in the existing procurement regulatory framework to grant exemption to bidders, even in case of engineering services. The provisions of the Public Procurement Rules, 2004 shall have overriding effect over any other rules related to public procurement, and take precedence in case of any conflict.
PPRA does not have the mandate or authority to regularize mis-procurements or to settle audit paras raised against procuring agencies for violations of the Public Procurement Rules, 2004, or the regulations framed thereunder. No such powers have been delegated to the Authority under the PPRA Ordinance, 2002, or under any provision of the Public Procurement Rules, 2004. The responsibility for addressing audit observations lies with the respective Principal Accounting Officer (PAO) and the relevant audit and accountability institutions.
Only Federal 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, works and disposal of public assets. Federal PPRA does not indulge in line clearance functions nor this function has been outsourced by Federal PPRA to any Civil Society Organization in /outside the country. Public sector organizations entering into MOUs entailing line clearance function do so at their own risk and cost.