Public Procurement Rules-2004: Notification
Public Procurement Rules-2004: Notification
Public Procurement Rules-2004: Notification
NOTIFICATION
S.R.O. 432(I)/2004.- In exercise of the powers conferred by section 26 of the
Public Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the Federal Government
is pleased to make the following rules, namely: -
PPRA Heading Old Rule with sub clauses New Rule or sub clauses inserted/ Remarks
Rule No. amendment made vide S. R. O.
442(I)/2020 dated 19.5.2020
1 Short title and (1) These rules may be called the
commencement. - Public Procurement Rules, 2004.
(b) “bidder” means a person who * [(ba) “call off order” means an order New insertion /
submits a bid; placed by a procuring agency under addition
general terms and pricing on a range
of goods under closed framework
agreement, without having to
negotiate terms every time.
No amendment
(c) “competitive bidding” means a
procedure leading to the award of a
contract whereby all the interested
persons, firms, companies or
organizations may bid for the
contract and includes both national
competitive bidding and international
competitive bidding;
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(e) “contract” means an agreement
enforceable by law;
(h) “lowest evaluated bid” means,- (i) a bid or proposal for goods, works
or services that after meeting the
(i) a bid most closely conforming to eligibility and or qualification criteria,
evaluation criteria and other is found substantially responsive to New insertion /
conditions specified in the bidding the terms and conditions as set out in addition
document; and the bidding or request for proposals
document; and
(ii) having lowest evaluated cost;
(ii) evaluated as the highest ranked
bid or proposal on the basis of cost or
quality or qualification or any
combination thereof, as specified in
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the bidding documents or request for
proposal documents which shall be in
conformity with the selection
techniques to be issued by the
Authority;]
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governmental with an obligation or commitment of
commitments of the the Federal Government arising out
Federal Government.- of an international treaty or an
agreement with a State or States, or No amendment
any international financial institution
the provisions of such international
treaty or agreement shall prevail to
the extent of such conflict.
6 Language.- All communications and
documentation related to
procurements of the Federal
Government shall either be in Urdu
or English or both. Except where a
procuring agency is situated outside
the territories of Pakistan and
procurements are to be made
locally, the procuring agency may
use the local language in addition to
Urdu or English.
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for planning in detail for all proposed
procurements with the object of
realistically determining the
requirements of the procuring
agency, within its available
resources, delivery time or
completion date and benefits that
are likely to accrue to the procuring
agency in future.
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clear authorization and delegation of
powers for different categories of
procurement and shall only initiate
procurements once approval of the
competent authorities concerned
has been accorded.
12 Methods of *(1) Procurements over one hundred (1) Procurements over **[five amended / addition
advertisement.- thousand rupees and up to the limit hundred thousand Pakistani Rupees]
of two million rupees shall be and up to the limit of ***[three million
advertised on the Authority’s Pakistani Rupees] shall be advertised
website in the manner and format on the Authority’s website in the
specified by regulation by the manner and format specified by
Authority from time to time. These regulation by the Authority from time
procurement opportunities may also to time. These procurement
be advertised in print media, if opportunities may also be advertised
deemed necessary by the procuring in print media, if deemed necessary
agency: by the procuring agency:
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proposals for pre-qualification) from
the date of publication of an
advertisement or notice, keeping in
view the individual procurement’s
complexity, availability and urgency.
However, under no circumstances
the response time shall be less than
fifteen days for national competitive
bidding and thirty days for
international competitive bidding
from the date of publication of
advertisement or notice.
(2) The response time shall be *[Provided that for all procurements New insertion /
calculated from the date of first up to three million Pakistani Rupees, addition
publication of the advertisement in a the response time shall be
newspaper or posting on the web considered from the date of
site, as the case may be. appearance of the advertisement on
the Authority’s website.]
(3) In situations where publication of
such advertisements or notices has
occurred in both electronic and print
media, the response time shall be
calculated from the day of its first
publication in the newspapers.
14 Exceptions.- *It shall be mandatory for all
procuring agencies to advertise all
procurement requirements
exceeding prescribed financial limit
which is applicable under sub-
clause (i) of clause (b) of rule 42.
However under following
circumstances deviation from the
requirement is permissible with the
prior approval of the Authority,-
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relates to disclosure of information,
which is proprietary in nature or falls
within the definition of intellectual
property which is available from a
single source.
No amendment
15 Pre-qualification of (1) A procuring agency, prior to the
suppliers and floating of tenders, invitation to
contractors.- proposals or offers in procurement
proceedings, may engage in pre-
qualification of bidders in case of
services, civil works, turnkey
projects and in case of procurement
of expensive and technically
complex equipment to ensure that
only technically and financially
capable firms having adequate
managerial capability are invited to
submit bids. Such pre-qualification
shall solely be based upon the
ability of the interested parties to
perform that particular work
satisfactorily.
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information that the procuring
agency deems necessary for
prequalification.
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New insertion / addition with the selected suppliers and
service providers. Maximum duration
of open framework agreements shall
not be more than three years and the
closed framework agreements shall
not exceed one year. (5) The
procuring agency may on need basis
pre-qualify new suppliers or service
providers during continuity of
framework agreements with
previously pre-qualified suppliers or
service providers. (6) The Authority
shall make regulations, regulatory
guides, guidelines or templates for
procurement through framework
agreements.]
16B. Price adjustment for 1) The procuring agency may, during New insertion /
framework agreements the contract execution, addition
Accept a request to make price
adjustment (under circumstance of
above normal price volatility) and
shall make a comparison of the
prices requested against the national
or international price indicator guides
adopted by the Authority and verify
the justification for such price
adjustment. (2) The procuring agency
shall determine the factor or
percentage for price adjustment
approved by the Principal Accounting
Officer (PAO).]
17 Qualification of suppliers A procuring agency, at any stage of
and contractors.- the procurement proceedings,
having credible reasons for or prima
facie evidence of any defect in
supplier’s or contractor’s capacities,
may require the suppliers or
contractors to provide information
concerning their professional,
technical, financial, legal or
managerial competence whether
already pre-qualified or not:
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and contractors.- a mechanism and manner to
permanently or temporarily bar, from
participating in their respective
procurement proceedings, suppliers
and contractors who either
consistently fail to provide
satisfactory performances or are
found to be indulging in corrupt or
fraudulent practices. Such barring
action shall be duly publicized and
communicated to the Authority:
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(a) invitation to bid;
(b) instructions to bidders;
(c) form of bid;
(d) form of contract;
(e) general or special conditions of
contract;
(f) specifications and drawings or
performance criteria (where
applicable);
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request and subject to payment of
price, if any.
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(a) agree to extension of their bid
validity period shall also extend the
validity of the bid bond or security
for the extended period of the bid
validity;
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shall form an integral part of the
bidding documents. Failure to
provide for an unambiguous
evaluation criteria in the bidding
documents shall amount to mis-
procurement.
30 Evaluation of bids.- (1) All bids shall be evaluated in
accordance with the evaluation
criteria and other terms and
conditions set forth in the prescribed
bidding documents. Save as
provided for in sub-clause (iv) of
clause (c) of rule 36 no evaluation
criteria shall be used for evaluation
of bids that had not been specified
in the bidding documents.
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reference shall be made to the
ordinary practices of that trade,
manufacturing, construction
business or service to which that
particular procurement is related.
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document.
(ix) the bid found to be the lowest 36 (b)(ix) the bid found to be the New insertion /
evaluated bid shall be accepted. *[most advantageous bid] shall be addition
accepted.
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(c) Two stage bidding procedure.-
First stage
Second stage
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technical requirements of the
procuring agency, shall be invited to
submit a revised technical proposal
along with the financial proposal;
(viii) the revised technical proposal 36 (c) (viii) the revised technical New insertion /
and the financial proposal shall be proposals and the financial proposal addition
evaluated in the manner prescribed shall be evaluated in the manner
above. The bid found to be the prescribed above. The bid found to
lowest evaluated bid shall be be the *[most advantageous bid] shall
accepted: be accepted:
First stage
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discussed with the bidders with
reference to the procuring agency’s
technical requirements;
Second stage
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37 Conditions for use of Single stage one envelope bidding New insertion /
single stage two procedure shall ordinarily be the addition
envelope, two stage and main open competitive bidding
two stage two envelope procedure used for most of the
bidding procedures.- procurement. Other appropriate
procedures of open competitive
bidding shall be selected in the
following circumstances, namely:-
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prequalification; and (d) award five
percent additional weightage to the
project proponent in the combined
evaluation of his proposal. (2) If no
other bidder in response to the
advertisement submits bid, the
procuring agency may award the
contract to the initiator of the
proposal. (3) In case of bidding
competition, if the bid of initiator does
not emerge as most advantageous
bid, procuring agency shall give the
initiator an opportunity to make his
bid at par with the most
advantageous bid, however if the
initiator does not want to accept the
challenge to match the proposal, he
shall be given right of refusal without
forfeiture of bid security. (4) The
proprietary information of the initiator
contained in the proposal shall
remain confidential and shall not be
disclosed to any interested bidder
(5) Subject to sub-rule (4), the
procuring agency shall not be
responsible for any intellectual
property rights accruing to the
proposal of the initiator. (6) Unless
otherwise expressly stated in writing
by the initiator, the procuring agency
may, if it considers necessary,
disclose any information of the
unsolicited proposal or the bidders as
part of procurement process.]
38 Acceptance of bids.- The bidder with the lowest evaluated The bidder with the *[most amended / addition
bid, if not in conflict with any other advantageous bid], if not in conflict
law, rules, regulations or policy of with any other law, rules, regulations
the Federal Government, shall be or policy of the Federal Government,
awarded the procurement contract, shall be awarded the procurement
within the original or extended contract, within the original or
period of bid validity. extended period of bid validity.
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bid in goods, works (1) The procuring agency shall
and services.- consider single bid in goods, works New insertion /
and services if it- (a) meets the addition
evaluation criteria, ensures
complaints of specifications and other
terms & conditions expressed in
advertisement or bid solicitation
documents; (b) is not in conflict with
any provision of the Ordinance; (c)
conforms to the technical
specifications; (d) has financial
conformance in terms of rate
reasonability: Provided that except
unsolicited proposal, in case of pre-
qualification proceedings single bid
shall not be entertained. (2) The
procuring agency shall make a
decision with due diligence and in
compliance with general principles of
procurement like economy, efficiency
and value for money.
39 Performance Where needed and clearly
guarantee.- expressed in the bidding No amendment
documents, the procuring agency
shall require the successful bidder to
furnish a performance guarantee
which shall not exceed ten per cent
of the contract amount.
39A. Letter of credit Where required the procuring agency
may incorporate the provision of letter
of credit (LC) and International
Chamber of Commerce incoterms, in
New insertion / addition such processes where shipments and New insertion /
custom clearance are involved and addition
where procuring agency’s bank
mitigate procurement risk in terms of
quality assurance and delivery
mechanism and bidder’s bank in
terms of its payments.]
40 Limitation on Save as otherwise provided there (1) Without changing the cost and
negotiations.- shall be no negotiations with the scope of work or services, the
bidder having submitted the lowest procuring agency may negotiate with
evaluated bid or with any other the successful bidder (with a view to
bidder: streamline the work or task
execution, at the time of contract New insertion /
Provided that the extent of finalization) on methodology, work addition
negotiation permissible shall be plan, staffing and special conditions
subject to the regulations issued by of the contract. (2) Authority may
the Authority. determine the extent and types of
negotiations on procurement by
regulations.]
41 Confidentiality.- The procuring agency shall keep all
information regarding the bid
evaluation confidential until the time No amendment
of the announcement of the
evaluation report in accordance with
the requirements of rule 35.
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42 Alternative methods of A procuring agency may utilize the
procurements.- following alternative methods of
procurement of goods, services and
works, namely:-
**[(a) petty purchases.-
(a) petty purchases.-
Procuring agencies may provide for Procuring agency may provide for Amended / addition
petty purchases where the object of petty purchases through single
the procurement is below the quotation where value of the object of
financial limit of *twenty five the procurement is up to the financial
thousand rupees. Such procurement limit of one hundred thousand
shall be exempt from the Pakistani Rupee, without resorting to
requirements of bidding or quotation biding or quotations and the contract
of prices: for the provision of such goods,
Provided that the procuring services or works may be a local
agencies shall ensure that purchase order.
procurement of petty purchases is in
conformity with the principles of
procurement prescribed in rule 4:
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(iv) the object of the procurement is
purchased from the supplier offering
the lowest price:
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agencies shall specify appropriate
fora vested with necessary authority
to declare an emergency;
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prompt payments to suppliers and
contractors against their invoices or
running bills within the time given in
the conditions of the contract, which
shall not exceed thirty days. No amendment
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which shall not exceed sixty days to
close the contract for final audit.
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(5) Any bidder not satisfied with the
decision of the committee of the
procuring agency may lodge an
appeal in the relevant court of
jurisdiction.
49 Arbitration.- (1) After coming into force of the
procurement contracts, disputes
between the parties to the contract
shall be settled by arbitration.
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