PUBLIC PROCUREMENT

REGULATORY AUTHORITY
(PPRA)RULES
By:
Ibtesam Munir
Dy. Manager (Procurement)
o/o Chief Engineer (MP&M) NTDC
Contents
PPRA Framework
PPRA Principles
PPRA Scope/Functions
Common Definitions
PPRA Rules
PPRA Framework
Law : PPRA Ordinance, 2002
Rules : Public Procurement Rules, 2004, Revised 2021
Regulations:
PPRA Regulations, 2008 (Bidding Documents of Engineering Works
& Records to be kept)
PPRA Regulations, 2009 (Posting of Contract Awards on PPRA’s
website)
Consultancy Services Regulations, 2010
PPRA Regulations, 2011 (International and inter-governmental
commitments)

Public Procurement in Pakistan is completely decentralized.

Ministries, Divisions, Departments, and Authorities making their
own procurements.
PPRA Principles
Best value for money
Efficiency
Transparency
Integrity
Accountability
Fair competition
Good governance
Value For Money
Best returns for each rupee spent in terms of
quality, timeliness, reliability, after-sales services, up-
grade ability, price, source, and the combination of
whole-life cost and quality to meet the procuring
agency’s requirements
Scope Of PPRA
To regulate the public procurement of goods, works and
services and the matters ancillary there to; within the ambit of the
Federal Government whether within or outside Pakistan.
In pursuance of Section 5 of the PPRA Ordinance, PPRA may
take such measures and exercise such powers for improving the
governance, management, transparency, accountability
and quality of public procurement
Power to Make Regulations
Power to Conduct Investigations and Enquiries
Power to Recommend to the FG for Granting Exemption
Main Functions Of PPRA
Development of procurement laws, regulations,
procedures, guidelines and standard bidding documents;
To monitor the application and implementation of
Procurement Laws;
To Evaluate the Procurement Laws, and to recommend
the FG for reformulation and revision of these laws
To monitor the procurement practices and
to recommend the PAs, improvement in their
institutional setup and procurement activities
PPRA Regulatory Tools
Complaint Management System

EPADS (E-Pak Acquisition and Disposal System)

In case of deviation from Rules:

 Evaluation Report containing:
 Observations/Findings
 Regulatory Directives (Binding in Strict Sense)
 Recommendations (Binding unless alternative solution acceptable to
PPRA)
 Suggestion (For Sake of Improvement)

In case of serious violations suffering transparency of

the process:
 Investigation Reports and inquiries
PPRA Adoption By Provinces
Tenders vs Violations
PPRA Rules
 PPRA Rules

 General provisions
 Principle of procurement
 Procurement Planning
 Procurement Advertisements
 Pre-qualification, Qualificationa and Dis-
qualification of Suppliers and Contractors
 Methods of Procurement
 Opening, Evaluation & Rejection of Bids
 Acceptance of Bids & Award of Procurement of
Contracts
 Maintenance of Record & Freedom of Information
 Redressal of Grievances & Settlement of disputes
Procurement:
GOODS:
Articles and objectives of every kind and description including
raw materials, products; equipment, machinery, spares and
commodities in any form

WORKS:
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

SERVICES:
Any object of procurement other than goods or works
Bid / Bidder:
“Bid” means a tender, or an offer, in response to an
invitation, by a person, consultant, firm, company or
organization expressing his or its willingness to
undertake a specified task at a price;
“Bidder” means a person who submits a bid;
Competitive Bidding:
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;
Most Advantageous Bid:
A bid most closely conforming to evaluation criteria
and other conditions specified in the bidding
document; and having the lowest evaluated cost.
Repeat Orders :
Procurement of the same commodity from the same
source without competition and includes enhancement
of contracts;
Emergency :
Natural calamities, disasters, accidents, war and
operational emergency which may give rise to
abnormal situation requiring prompt and immediate
action to limit or avoid damage to person, property or
the environment accidents, of the same commodity
from the same source without competition and
includes enhancement of contracts;
e-Procurement:
Use of information and communication technologies or
digital or electronic means for procurement process;
Framework Agreements:
A contractual arrangement which allows a procuring
agency to procure goods, services or works that are
needed continuously or repeatedly at agreed terms and
conditions over an agreed period of time, through
placement of a number of orders
Corrupt & Fradulent Practices:
In procurement processes, either one or combination
of following:
Coercive practices
Collusive practices
Corrupt practices
Fradulent practices
obstructive practices
Rule. 1
Principles of Procurement
Procuring agencies, while engaging in procurements,
to ensure that:

the procurements are conducted in a fair and

transparent manner
the object of procurement brings value for money to the
agency
 the procurement process is efficient and economical.
Rule.3
Scope & Applicability
These rules shall apply to all procurements by all
procuring agencies of the FG whether within or
outside Pakista.

.
Rule. 5
International or Inter-governmental
Commitments of the Federal Government
Whenever these rules are in conflict with an
obligation or commitment of the Federal Government
arising out of an international treaty or an agreement
with a State or States, or any international financial
institution the provisions of such international
treaty or agreement shall prevail to the extent of
such conflict.
 Rule. 6
Language
All communication and documentation in Urdu or
English or Both.
Outside Pakistan and local procurement in the local
language.
Original documentation in Urdu or English for the
record;
Their translation in the local language to be used;
Provided maximum economy and efficiency are
ensured.
In case of dispute original documentation shall be
referred.
 Rule. 7A
e-public procurement
The procuring agencies may carry out e-procurement
process by s by using information and communication
technologies or digital or electronic means, in such
manner as to cover any or all aspects of the
procurement process, in accordance with the
regulations or guidelines to be prescribed by the
Authority
 Rule. 8
Procurement planning
Within one year of commencement of these rules, all
procuring agencies shall devise a mechanism, 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.
 Rule. 9
Limitation on Splitting or regrouping of
proposed procurement
As per regulations of authority and with prior approval
of FG, a procuring agency shall announce in an
appropriate manner all proposed procurements for
each financial year and shall proceed accordingly
without any splitting or regrouping of the
procurements so planned.
 Rule. 10
Specifications
The procuring agency shall allow the widest possible
competition by defining such specifications that shall
not favour any single contractor or supplier nor put
others at a disadvantage
 Rule. 10
Specifications
Any terms, specifications, standards, features,
characteristics and requirements prescribing the
technical or quality characteristics shall be generic in
nature and shall not include reference to brand name,
model number, catalogue number, name or origin of
the country or similar classification
 Rule. 11
Approval Mechanism
All procuring agencies shall provide clear
authorization and delegation of powers for different
categories of procurement
 Rule 12
Advertisements Methods
OVER RS.500.000 – RS. 3 MILLION
to be advertised on the Authority’s website in the
manner and format specified by the Authority and
may also be advertised in print media, if deemed
necessary,

OVER RS. 3 MILLION

to be advertised on the PPRA’s website and
newspapers (at least two national dailies,) having wide
circulation. And may also be posted on procuring
agency’s own website,
 Rule 13
Response Time
 National Competitive Bidding --not less than 15 days
 International Competitive Bidding -- not less than 30 days.
All advertisements/notices to mention expressly the response
time and information for the collection of bid documents,
providing no time limit for emergencies.

The response time is to be calculated from the date of the first

publication of the advertisement in a newspaper or posting on
the website.

Where publication of such advertisements or notices has

occurred in both electronic and print media, the response time
to be calculated from the day of its first publication in the
newspapers.
 Rule 15
Pre-qualification of
Suppliers/Contractors
Suitable in case of Services, Civil Works, Turnkey
Projects and procurement of Expensive, Technically
Complex Equipment.

It is to ensure that technically and financially

capable firms having adequate managerial
competency are invited to submit bids.
 Rule – 16
Framework Agreement
The Procuring Agency shall arrange the procurement
through framework agreements of recurrent or
common use items, services including
maintenance services and those commodities, whose
market prices fluctuate during the term of the
agreement, for a maximum period of three years.
Closed Framework Agreement: an agreement with
specified terms and conditions with an agreed price
Open Framework Agreement: an agreement with specified
terms and conditions without an agreed price
 Rule – 17
Qualification
A procuring agency, at any stage of the procurement
proceedings, may require the suppliers or contractors to
provide information concerning their professional,
technical, financial, legal or managerial competence
whether already pre-qualified or not:

Provided Reasons to be recorded in writing by the P.A.

Rule – 18
Disqualification
The procuring agency shall disqualify a supplier or
contractor if it finds, at any time, that the information
submitted by him concerning his qualification as
supplier or contractor was false and materially
inaccurate or incomplete.
Rule 19
Blacklisting
Specify a mechanism and manner to permanently or
temporarily bar.
Such barring action shall be duly publicized and
communicated to the Authority:
Adequate opportunity of being heard.
Blacklisting and debarrment Penalities:
i. not more than 10 years in case of corrupt and fradulent
practice
ii. Not more than 03 years in case of failure ot perform contract
iii. Not more than 06 months in case of failure to abide bid
securing declaration
Rule 19
Blacklisting
Blacklisting and debarrment Penalities:
i. not more than 10 years in case of corrupt and
fradulent practice
ii. Not more than 03 years in case of failure ot
perform contract
iii. Not more than 06 months in case of failure to
abide bid securing declaration

The bidder can file for review to Authority within 30

days
Rule 20
Principal method
Save as otherwise provided hereinafter, the procuring
agencies shall use open competitive bidding as
the principal method of procurement for the
procurement of goods, services and works.
 Rule 22
Submission of Bids.-
The bids shall be submitted in a sealed package or
packages in such a manner that the contents are fully
enclosed and cannot be known until duly opened.

A procuring agency shall specify the manner and

method of submission and receipt of bids in an
unambiguous and clear manner in the bidding
documents.
Rule 25
Bid Security
The procuring agency may require the bidders to
furnish a fixed bid security not exceeding five
percent of the estimated value of procurement.
 Rule 26
Bid Validity
Must specify a bid validity period
Bids shall be valid for the time period specified in the bidding
documents
P.A shall process the bid within the bid validity period
All the applicants shall be asked to extend their bid validity
period, not exceeding the original bid validity, in case the award is
not finalized during the initial bid validity period
Bidders who agree:-
 shall also extend the validity of the bid bond or security for the extended period of the
bid validity;
 shall not be permitted to change the substance of their bids; and

Bidders who do not agree:-

 to an extension of the bid validity period shall be allowed to withdraw their bids without forfeiture of
their bid bonds or securities.
Rule 27 -34
Opening, Evaluation & Rejection of Bids
Rule 27: Extension of time for bid submission
Rule 28: Opening of Bid
Rule 29: Evaluation Criteria
Rule 30: Evaluation of Bids
Rule 31: Clarification of Bids
Rule 32: Discriminatory & difficult conditions
Rule 33: Rejection of Bids
Rule 34: Re-Bidding
 Rule 35
Announcement of evaluation Reports
Based on the procedure adopted for the respective
procurement, the procuring agency shall announce the
result of bid evaluation, in the form of a final evaluation
report giving justification for acceptance or rejection of bids
at least fifteen days prior to the award of the
procurement contract:
Provided that in case where the technical proposal is to
be evaluated separately, prior to opening of the
financial proposal, the technical evaluation report
shall be announced before opening of the financial
proposal.
Rule 36
Procedures of Open Competitive Bidding
a) Single stage – one envelope procedure.
b) Single stage – two envelope procedure.
c) Two-stage bidding procedure.
d) Two stage – two envelope bidding procedure.
Rule 37
Conditions of using Bidding Procedure
a) Single stage – one envelope procedure.
Most common method
b) Single stage – two envelope procedure.
Price is taken into account after technical
evaluation
c) Two-stage bidding procedure.
Large and Complex contracts
d) Two stage – two envelope bidding procedure.
Where alternate technical proposals possible
 Rule 38
Acceptance of Bids
Most advantageous bid to be accepted
If not in conflict with any other law, rules, regulations
or policy of Government.
Within the original or extended period of bid
validity
38B- PA can accept single bid
Rule – 39
Performance guarantee

Where needed and clearly expressed in the bidding

documents, the procuring agency shall require the
successful bidder to furnish a performance guarantee
which shall not exceed ten percent of the
contract amount.
Rule – 39
Performance guarantee

Where needed and clearly expressed in the bidding

documents, the procuring agency shall require the
successful bidder to furnish a performance guarantee
which shall not exceed ten percent of the
contract amount.
 Rule – 40
Limitation on negotiation
Without chaning the cost and scope of work or
services, the procuring agency may negotiate with
sucessful bidder on methodology, work plan, staffing
and special conditions of contract.
 Rule – 41
Confidentiality
The procuring agency shall keep all information
regarding the technical or final evaluation
confidential, as the case may be, until the time of the
announcement of the respective evaluation reports in
accordance with the requirements of rule 35
Rule – 42
Alternate Methods of procurement
a) Petty Purchase: Less than Rs. 100,000 (Single
quotation)
b) Request for Quotations: Rs. 100,000 to 500,000
(Minimum three quotations)
c) Direct Contracting
d) Negotiated Tendering
e) Force account
f) Direct Contracting with SOEs.
Rule – 43
On account pyments
All procuring agencies shall make 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
 Rule – 47
Public Access and Transparency
as soon as the contract is awarded
exceptions – proprietary nature or against the Public
Interest
prior approval of PPRA required to withhold the
information from public disclosure
 Rule – 48
Redressal of Grievances by the
Procuring Agency
Constitution of a Committee (GRC) of odd number
of persons
Complaints prior to the entry into force of the
procuring contract
Written complaint within 15 days (or 7+5 days)
after the announcement of the bid evaluation report
Decision by the Committee within 10 days of the
receipt of the complaint
Appeal can be filed with the Authority
 Rule – 50
Mis-procurement
 Any unauthorized breach of these rules shall
amount to mis-procurement.
Quiz
 QUIZ
Q1:What is the minimum response time for procurement
advertisements?
Q2:How can procuring agency calculate response time?
Q3:Can procuring agency fix the amount for bid security?
Q4:Can procuring agency reject bids without assigning any
reason?
Q5:What course of action will be adopted by the procuring
agency when all the bids prices substantially exceed the cost
estimated/market value?
Q6:Whether the procuring agency can enter into
negotiations with the bidders for the reduction in the prices
or to call for new bids?
THANK YOU