with

PPA 2006 & PPR 2008

Presenter : Md. Faruque Hossain

Deputy Secretary
PPP Unit, Finance Division
National Trainer( Certified by ILO-ITC), PPM
Resource person :CIPS,UK/IGS/Advance, Corporate procurement
& supply chain
Resource person : CPTU-Public-Private partnership

What is Procurement ?

Acquisition of goods
through Purchasing and hiring,
execution of works
and
performance of services
by any contractual means.

Necessity

Integral part of the Development System.

Significant issue affecting Public Sector
Performance.
Standardize Expenditure and Minimize Wastage.
Over all Governance

Deficiencies identified in public spending in the

GOB during ( 1999) reform.
1.
2.
3.

4.
5.
6.
7.
8.

No sound legal framework;

Need
Complex Procedure causing delay;
Reform
Lack of adequate professional;
Poor Tender Documents and Evaluation;
Ineffective administration of Contract;
Different procedure in different PE;
Allegation of corruption in procurement;
Absence of Transparency and Accountability;

Allocated to IMED
Matters relating to Central Procurement Technical
Unit (CPTU).
Matters relating to The Public Procurement
Regulations, 2003.
Allocation of Business amended
CCEA authority to approve all regulatory
instruments/documents/policy decisions;
Finance Division : Delegation of Financial Power

Reform
CPTU
Regulations, 2003.
Documents
Capacity building

Objectives to improve
Governance, efficiency,
Transparency, accountability ,
peoples confidence in country system

Advice &
assist PEs
Prepare &
distribute STDs

Amend
legislation

Publish bulletin
on ads and
procurement

CPTU

RESPONSIBILITIES

Develop a
PP website

Request/
receive/evaluate
info from PEs

Submit an
Annual Report
to GoB

Role
of
CPTU

Public Procurement Regultions-2003

Public Procurement Procedure
Public Procurement Approval Procedure

Delegations of Financial Power ( Rev/Dev)

Tender Documents
Public Procurement Act-2006
Public Procurement Rules-2008

Chapter 1
Preliminary
Chapter 9
Miscellaneous

Chapter 8
E-Government
Procurement

Chapter 2
Preparation of
Tender or Proposal,
Committee
Chapter 3
Principles of
Public
Procurement

PPR,2008

Chapter 4
Methods of
Procurement for
G & RS, W, PS

Chapter 7
Professional
Misconduct
Chapter 5
Procurement of
Intellect. & Profess.
Services

Chapter 6
Processing of
Procurement

Schedule XII
Code of
Ethics

Schedule I
STDs

Schedule II
Times & Values

Schedule III
Proc. Processing,
Approval Timetable

Schedule XI
Submission
Forms

Schedule X
Invitation and
Request

Schedule IV
Proc. Processing,
Approval Procedure

PPR,2008

Schedule V
Procurement
Plan

Schedule IX
Consultant Conflict
of Interest

Schedule VIII
Procurement
Records

Schedule VII
Notification of
Award

Schedule VI
Contract Award
Reporting Format

Next
PPR shall apply to :
slide

Procurement by PEs using public funds;

Procurement by any government, semi-government or any

statutory body established under any law;

Procurement using public funds by -a company registered under

the Companies Act, 1994 (Act No. 18 of 1994);

Procurement under a loan, credit or grant agreement or under any

other agreement with a development partner or with a foreign state
or an organisation, provided that if there is anything to the
contrary in any such agreement entered into, the provision of that
agreement shall prevail.

Public Fund
Fund provided to PE from development or revenue
budget.
Loan/Grant/Credit/Aid put at the disposal of PE by
DPs through the Government.

Procurement Forms
Goods

Related Services
linked to the supply of Goods

Works

Physical Services
with measurable outputs

Services

Intellectual & Professional

advisory, design, know-how

Steps :
A. Need Assessment/Scope/Estimated

cost/Budget/DPP

B.

Procurement Plan( Total/Annual)

C. Specification
D. Official Estimated Cost ( Before

Advertisement/notification)

E.

Document Preparation ( STDs)

Steps :
F. Committee Formation
G. Advertisement

H. Pre-Tender Meeting ( Optional)

I. Opening
J. Evaluation

Steps :
K. Approval
L. Notification of Award
M. Contract Signing

N. Contract Administration/MGM.

Other issues
Complaints and Appeal ( R-56-60)
Review Panel
Conflict of Interest
Domestic Priority
Delegated Procurement
Professional Misconduct
Framework Contract
Concession Contract
JVCA
Post-procurement review

When requirement is known

Procurement Plan : Mandatory for all PE

Approaches :

What is to be done?

When it is to be done?

How it is to be done?

Who is to do it?

What resources are required?

Who should know about it?

Control the situation : aim at attracting maximum

competition for the benefits of the PE

Contents

Package/Lot/Item
Method
Source of Fund
Estimated Cost
Approval Authority
Indicative dates

Time
Date
Date
Date
Date
Date

of
of
of
of
of

Notification
Opening
Awarding
Contract signing
Delivery

Methods
( PPA-31/34, PPR-52,61,88)
Open Tendering Method (OTM)
Limited Tendering Method (LTM)
Direct Procurement Method (DPM)
Two-Stage Tendering Method (TSTM)
Request For Quotation Method (RFQM)

Procurement Plan Regulated by

Frequency
Approval
Publication
Splitting into packages/lots
Nature & size of the Procurement
Source of funding
Limits & conditions
Forms

Procurement Plan

Speeds up the
procurement process
& reduces project
implementation
delays

Reduces possibility
of error & reduces
subsequent work

Contributes to
enhanced project
quality & efficiency

Procurement Plan

Estimated
cost

Availability

Quality

Price levels

Others

GOODS
Capacity

Type
Risks

Urgency

Competition

Nature and Size of Procurement

Item : A single article or unit in a list with
an identified quantity
Lot : A number of items grouped together.
Package : A multiple number of Lots grouped
together; No package can have more
than 5 lots

Office
equip.

Office
equipment
IT
equip.

Office equipment
IT
equipment

One Package
for
One Contract

Furniture
equipment

Two Packages
for
Two Contracts

PC PrintersServer

Furn.
equip.

Exec. Office
furn. furn.

Five Lots
for
Five Contracts

HOPE or AO shall approve splitting smaller packages & lots

on justifiable grounds

Single object or Procurement split into more than one

Package & Packages when split into more than one (1)
Lot
Tenders for each of those packages or lots shall be
placed for approval before the authority competent to
approve the sum total of those packages or lots-prior to the issuance of NOA for any one (1) of those
packages or lots

Development project PP

Approval Authority

DELEGATION OF FINANCIAL POWER

Value of the Package;

Package with more than one lot-maximum 5;
Can not split to avoid higher authority;
If single lot of a package is processing
Authority lies on him who was the authority for
the whole package.

Purpose of Specification

To provide unambiguous and standard

descriptions

To enable evaluation against defined criteria

To promote wider competition

Aims of Specification
Provide

information for suppliers to decide cost;

Permit evaluation against stated criteria;
State acceptance requirements (tests etc.);
Contain only essential features required;
Provide equal opportunity to all suppliers;
Provide opportunity for alternate technology;
Comply with legal and Entity requirements;

Information in Specification

Name,
description;
Quality;
Performance Standard and life span;
Safety Standard and Limit;
Symbols, Terminology used in packaging, marking, and
leveling;
Processes to be used in the production;

Elements of Specification

Function
Characterised
By

Purpose

Need

Technical
Aspects
Performance

Continuous liaison between User, Specification

Writer (Expert), Procurement Staff (PE) and the
Market Place.
Refer to User
Refer to User

User Draft

Procurement
Administration

Acceptable?

Refer to Procurement

Producers
Information,
Standards
etc.

Specification
Writing

Acceptable to
All Parties

Specification
Issued

Specification should be
Expressed in terms of performance or output
requirements rather than directly liked to design or
descriptive characteristics, which usually tend to limit
competition
Written on the basis of neutral & objective terms.
Based on, among others, the standards approved or
published by ISO, IEC, & BSTI or any other national or
international institute

Trade Mark in Specification

No reference to a particular trade mark or trade name,
patent, design or type, specific country of origin,
producer or service supplier R-29(3)
Where reference to a brand is unavoidable, the words
or similar or equivalent should be used R-29(4)
Limit the use of or similar or equivalent to cases
where it is essential to R-29(5)

Type
Design Based Specifications:

detailed designed drawings, material specifications, bill of quantities,

etc. Used for civil works, and expensive unique plant and equipment

including installation.

Performance Based Specifications:

capacity and performance for a specific purpose. Used for defining the

output of mass produced capital goods; such as highway maintenance

equipment, generators, transformers, etc.

Physical Property Based Specifications:

Used for metals, commodities, hardware, pipes, cables, rails.

When Writing Do .
Use simple language
Define terms/acronyms
Must be easily readable
Must have logical structure
Short paragraphs
Attractive layout
Systematic Numbering
Ensure good grammar
Readable by non-specialist

When Writing DO NOT .

Use complicated language

(jargon/undefined terms)
Be vague

Be too exact

Over specify

Use Trade or Brand names

Use unnecessary standards

Conflict with other documents

Provide unnecessary information

Major Elements
State

the requirement clearly, logically,

unambiguously and comprehensively
Allow potential suppliers to decide and cost their
offer
enable

evaluation against defined criteria

Provide

equal opportunity for all suppliers

Comply

with all necessary legal obligations and

certification

Assignment on specification

Write detailed specification of a Bye-Cycle

considering the following areas :
Technical aspect
Functional aspect and
Performance aspect
Design aspect

Specification

Cost estimation, Once for Planning, again for Evaluation

For Evaluation-Official Estimated Cost

Information from market;
Recent purchasers;
Internet;
Any other sources;
Kept confidential
Opened by the Chairman , TEC

during financial evaluation.

Before
finalization of
the Document
or before
Notification

Cost estimation, Once for Planning, again for Evaluation

For Evaluation-Official Estimated Cost

If exceeded the estimated cost in PP
Kept by HOPE
If not exceeded the estimated cost in PP
, kept by authorized person by HOPE

Before
finalization of
the Document
or before
Notification

 Must be prepared before Advertisement

Price not more than cost of preparation

Encourage eligible potentially

qualified Tenderer/Applicants to
participate, by making
reasonable demands for
information and formfilling

Provide a clear, objective

means of evaluating the
Tenderer/Applicants

Procedure for Post Procurement Review and Evaluation

Guideline and Format are used

PE may make necessary

adjustments in the TDS or
PCC, such adjustment
shall not contradict with
any provisions of the Act
and Rules.

PE follows the
Standard Documents
issued by CPTU

Some Sample STDs

PG1

National

SRFQ

PG2

National

OTM up to 25 Lac.

PG3

National

OTM above 25 Lac.

PG4

International

No threshold

PW1

National

SRFQ

PW2a

National

OTM Up to 2 Crore

PW2b

National

RFQ up to 2 Crore

PW3

National

OTM (No PQ), UP TO 2 C

PW4

National

OTM(PQ) ABOVE 35 Crore

PS1

National

SRFP for community services

PS2

National

RFP for NGO selection

PS3

National

Lump-sum/RFP

35 Documents for STDs and Evaluation ( EVG, EVW,EVS) guideline

Section 1:
Section 2:
Section 3:
Section 4:
Section 5:
Section 6:
Section 7:
Section 8:

Instructions to Tenderers (ITT)

Tender Data Sheet (TDS)
General Conditions of Contract (GCC)
Particular Conditions of Contract (PCC)
Tender and Contract Forms
Schedule of Requirements
Technical Specifications
Drawings

Sub-Sections

A:
B:
C:
D:
E:
F:
G:

General
Tender Document
Qualification Criteria
Tender Preparation
Tender Submission
Tender Opening and Evaluation
Contract Award

Tender Document ( PG3)

Tender Forms

PG3-1
PG33B

PG3-2

PG33A

PG3 1

Tender Submission
Letter

PG3 2

Tenderer
Information Sheet

PG3 3A

Price Schedule for

Goods

PG3 3B

Price Schedule for

Related Services

PG3 4

Specifications
Submission and
Compliance Sheet

PG3 5

Manufacturers
Authorisation Letter

PG3 6

Bank Guarantee for

Tender Security

ENLISTMENT
COMMITTEE
S

Formed By

HOPE

TOC

AA

OFFICER
AUTHORISED

1 - member from the TEC /

PEC and
2- member from concern
PE and other agency
CHAIRPERSON

MEMBER

MEMBER-SECRETARY

Only 1 ,may be more than 1 or even separate for

specific or particular requirement
Prior to the invitation
Must before the deadline for submission of
Tender.
Constituted by

AA

In case AA above HOPE, approval of Secretary

required.

 Officers of concern

PE/LM/Agency/Beneficiary/End
user/Specialist from other agencies.
Minimum 5, normally not exceeds 7.
2 truly external.
5 with 1 external evaluate the tender;
Signed the report by minimum 5 with 1
external.
Participating members shall mention their
names and designation.

Less than 5 members for low value goods

GOODS
TK.1.5M
BELOW

Minimum 3 of whom 1
from another agency
or another PE
Minimum 3 to attend
the Evaluation and sign
the ER

All participating TEC

members will mention
their names with
designations

LOW
VALUES

SERVICES
UPTO
TK.500
THOU

WORKS
TK.3 M
BELOW

External Members within the same agency :

Goods :
Works :

Up to Tk. 1.5 m
Up to Tk. 500 thou
Up to Tk. 3 m
Up to Tk. 1 m
Up to Tk. 500 thou

Services:

Up to Tk. 5 m
Up to Tk. 500 thou
Up to Tk. 200 thou

(OTM & LTM)

(DPM & RFQ)
(OTM & LTM)
(DPM)
(RFQ)
(LCS)
(SSS)
(RFQ)

Actions of TEC
TEC themselves evaluate on their own;
TEC members give declaration of

impartiality.
Also declare that evaluation done in
compliance with the Act and Rules;
Submit the report directly to AA in
prescribed manner.
Shall never be delegated.

Evaluation by TEC
Each TEC member signs the
declaration of impartiality in a manner as specified in
Rule -8(13)
Collective declaration of compliance the Act/Rules in
evaluation.
Follow specified format

Chairperson of TEC
General:

AA shall never chair

one immediate below AA, where AA is at the level of PD, PM or

AO as per the DoFP at the regional, sub-regional, district or
upazila level
AA itself at the upazila or other levels, where there may be no
class I officer below the AA
one immediate below HOPE, where AA is at the level of a HOPE
or of the CEO of a corporation, autonomous body or semiautonomous body
AA may designate one member-secretary

Chairperson of TEC
HOPE or CEO; where AA is at the level of a Board of
Directors or of a Ministry or CCGP
one immediate below HOPE or CEO, if for any
reason they are unable to chair any meeting of
EC
one immediate below Secretary in Ministrys own
procurement where the Secretary is the HOPE

Chairperson of TEC
Companies registered under the Companies Act,
1994 (Act No. 18 of 1994), using public
funds follow their own administrative and
financial delegations as applicable with
regard to chairperson of TEC/ PEC

Removal of the members of TEC, on the following

groundsdoes not disclose links/connection with
Tenderer
remains absent in 2 consecutive meetings

in direct breach of Section 64 of the Act

(Corruption, Fradulance, Collucive,Coersive)

transfer, death or absence from the country

Technical Sub Committee

AA may appoint a TSC with maximum 3 members or include
other experts in the EC subject to the number-limitation in
TEC / PEC, if a particular Tender or Proposal requires such
technical assistance
TSC is procurement specific

Enlistment Committee

PE forms the Enlistment Committee of 3 members

for procurement under LTM with

1
from PE
1
technical from PE
1
from outside the PE

HOPE or AO approves the list of the potential

Tenderers and PE updates on annual basis

Choosing National Level Newspapers of wide daily

circulation commonly known and ubiquitously
accepted; carefully applying sound judgment

ONE ENGLISH
LANGUAGE

ONE BANGLA
LANGUAGE

consider advertisements in maximum 2 local or

regional newspapers for a maximum of 2 days;
when estimated cost is less than Tk. 500
thou and
PEs are outside Dhaka, in addition to
national dailys
reduce the size of the advertisement when cost is a
factor and higher the number of newspapers

ensure publication in each copy of every edition of

the day if more than ONE edition on that particular
day

Time for Preparation of Tender

Threshold

Days

OTM

National

Up to Tk. 20 million

Not less than (14) days

Above Tk. 20 m up to Tk. 50 Not less than (21) days

m
Above Tk. 50 million
Not less than (28) days
For re-Tendering

Up to 20m-10 days,
Disaster-7 and
In others not less than (14) days

OTM

International

Irrespective of value

Not less than 42 Days

For re-tendering

Not less than 28 Days

Time for Preparation of LTM Tender

Aspects

Time

All cases

Not less than(14) days

Urgent need for

procurement

(7) days 63(b)(c)

Except

National disasters Below 7 days

Re-Tendering

Not less 7 days

Methods

Open Tendering
Preferred

Reasons

Justification

OTM

Competition under non-discriminatory and

equal terms;
Eligible Tenderers through public Advertisement;
Allowing the minm time for submission;
Urgent National need GoB may reduce time;
TS/PS Mandatory;
Tender Validity is a factor;
Lowest evaluated tender is the winner;
Evaluation happened in 4 stages-Preliminary,
Technical, Financial and Post qualification

OTM ( International)

Sufficient time for the submission of Tenders, invitation to

reach all potential Tenderers;

Specifications based upon international standards;

Acceptable Tender currencies;

Currency of Performance securities;

Currency of the contract price;

Transfer of ownership and risk as per Incoterms.

 Used to divide transaction costs and

responsibilities
between buyer and seller and reflect state-ofthe- art transportation practices.
Concern such factors as the cost of goods, place
of delivery, transport and insurance, transfer of
ownership, risks, documents, etc.

These four categories are:

Categories

Group E Departure
Group F Main carriage unpaid
Group C Main carriage paid
Group D Arrival

INCOTERM (11) 2012

Mode of Transport

Delivery Term

Abbreviation

For all types of

Transportation

Ex Works

EXW

Free Carrier

FCA

Carriage Paid To

CPT

Carriage Insurance Paid

CIP

Delivery at Terminal

DAT( DAQ, DAS, DAF)

Delivery at Place

DAP ( DDU)

Delivery Duty PAID

DDP

Free Alongside Ship

FAS

Free on Board

FOB

Cost and Freight

CFR

For Maritime

Cost, Insurance & Freight (port of destination)

SELLERS RISK

PORT OF
DEPARTURE

BUYERS RISK

PORT OF
ARRIVAL

Freight Forwarder

SELLERS COST

BUYERS COST

Cost: Free on Board

SELLERS RISK

BUYERS RISK

PORT OF
DEPARTURE

Freight Forwarder

SELLERS COST

BUYERS COST

SELLERS RISK

BUYERS RISK

Border

Site

Freight Forwarder

SELLERS COST

CPTU-IMED
(PPRP II) Three-Week
Training on Procurement of
Goods, Works & Services
Fineurop-ESCB

Incoterms
at a glance
At a glance

CPTU-IMED
(PPRP II) Three-Week
Training on Procurement of
Goods, Works & Services
Fineurop-ESCB

Allocation of Risk and Responsibilities on Seller

Incoterm

ExportLoad to
duty
truck
payment

Landin
Trans Unloa Landin
g
port d from g
Transp
charge
to
truck charge ort to
s at
import'
export at the s at
import
origin' origin' s port
er's
er's
s
port
s
port
port
port

Unloa
d onto
trucks
from
the
import
ers'
port

Entry
Transp
ort to Insura Custo
destina nce
ms
tion
cleara
nce

Entry
Taxati
on

EXW

No

No

No

No

No

No

No

No

No

No

No

No

FOB

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

CFR

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

CIF

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

No

No

CIP

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

No

No

DAP

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

DDP

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

1. CONTRACT

12. Goods
Delivered

5. Goods
On Board

SUPPLIER
4. ADVISE
L/C ISSUE

11. MONEY

10. DOCUMENTS

2. CREDIT

PURCHASER

6. DOC.S
7.

3. LETTER OF CREDIT
8. DOCUMENTS
9. MONEY

ISSUING BANK

ADVISING /
CONFIRMING BANK

LTM ( Rule-63,64)

G&W of their specialized nature available from a limited

number of supplier-Aircraft, locomotives, Specialized
medical equipment, telecommunication equipments, silos,
ports, harbours;( no threshold);

An urgent need for procurement, competitive tendering

impractical, neither foreseeable nor because of delay; ( no
threshold);

Policy standardized: computers ,laboratory

equipment ,research equipment ( no threshold);

From enlisted suppliers, subject to threshold;( 2.5 million

taka for goods);

Enlistment list of other PE may be used;

TS is not mandatory. PS mandatory.

TSTM ( Rule 65,66,67,68)

Turnkey Contracts or Contracts for large

complex nature of plants
Not possible Complete technical Specifications
in advance
Lacks the capability to prepare Specification.
Alternative Tech. approaches may not be
available within the knowledge of PE
Only technical in 1st stage ( No TS)
Both technical and financial in 2nd stage (
Procedure of OTM)

RFQM

Readily available Off-the-shelf Goods

Tk. 200,000 (Each proc.) Annual Tk. 1000,000 ( In non-development);

Tk. 5,00,000 ( Each Proc) Annual Tk.20,00,000 ( In development);

No Tender or Performance Securities are required;

Publish ad in notice board, PEs website;

At least three (3) responsive quotations;

Purchase order in case of Goods;

Documentation needed;
Time not more than 10 days.

DPM

Direct
Procurement

Direct
Contracting

Extra Work Order

15%

Repeat Order

Variation Order

Direct Cash
Purchase

Force Account

15%

15%-50% ( Works)

Direct Contracting ( Rule-76)

Only one supplier to submit offer

Proprietary nature which can be obtained only from the proprietary source
Critical plant components according to condition precedent
Exclusive dealer or manufacturer which does not have sub-dealers
From a Government-owned industry or factory using government own
funds
Perishable goods

Goods directly from farmer to protect their fair price

Specialized product, specification approved by agencies
Not interchangeable with existing equipment in case of spare parts

Emergency Procurement arising from Natural disasters within the

thresholds (Maximum Tk. 50 Lacs in each annual aggregate 5 Crore)
Very urgent or essential nature, such as transportation services, event
management (Maximum Tk. 1 Lac to 5 Lacs in each case )

Direct Cash Purchase

DCP

Direct cash
purchase of low
value Goods and
urgent and
essential Services

Taka 25,000/=

Maintenance,
Annual Aggregate
repairs,
Tk 500,000
transportation
etc
Force Account use of hiring direct labor 2,00,000 in each
case

To clarify issues;
Answer questions to any matter arising in
the tender document;
PE may hold Pre-Tender meeting;
Potential tenderers are encouraged to attend
the meeting;
Amendment may happened as a result of
Pre-Tender meeting.

. Own initiatives
. Response to a clarification
.. Result of Pre-Tender Meeting

Circulated within 5 working days

Acknowledge within 3 working days
Extension of deadline is optional if addendum within
time
Extension of deadline is mandatory if 2/3rd time has
elapsed
Not less than 3 days when PE extend the date

TOC Shall ensure

Opening following steps of Schedule IV D of PPR,
& ITT- 42 of TDs

Opened immediately after the deadline at

primary place but not later than 1 hour

the

No delayed opening on the plea of absence of

Tenderers

Representative shall be duly authorized

TOC Shall ensure

Examination

and verification of authenticity of W,S,M

or O, if any; but not gives decision;
Chairperson of TOC will read aloud each Tender and
record in the Tender Opening Sheet (TOS) ;

Only

Modification, Discounts read aloud at the Tender

opening will be considered in evaluation;
All

pages of the original, will be initialed by TOC;

Main stages of Evaluation

Preliminary Examination
Technical Examination & Responsiveness
Financial Evaluation & Price Comparison

Post-qualification

Steps

Step 1: Completeness of Tender,

Step 2: Verification of eligibility of Tenderer

Step 3: Tender Validity

Step 4: Tender Security

Step 5: Notices for W,S,M

Steps-1 ( Documents provided and signed)

Completeness of Tender,

Citizen of Eligible Country;

Physical or juridical individual or body or
company, association;
Government owned-legally and financially
autonomous, operate under commercial law,
are not a dependant agency ( If govt. org);
Shall have the legal capacity to enter into a
contract;
Shall not have conflict of interest;

Steps-1 ( Documents provided and signed)

Completeness of Tender,

Shall not be under a declaration of ineligibility for

corrupt, fraudulent, collusive and coercive;
Is not restrained or barred;
Shall not be insolvent, be bankrupt, be in process
of bankruptcy;
Fulfilled its obligation to pay taxes;
Continued eligibility satisfactory to the PEs;
Applicable for sub-contractor proposed by the
tenderer.

Steps-1 ( Documents provided and signed)

Completeness of Tender,
Documents on qualifications attached (ITT Section C)
Litigation

History : Maximum number of arbitration awards against

the tenderer over a period specified.

Experience

Financial

Criteria :

Overall experience
Specific experience
Minimum supply or production capacity

Criteria

Satisfactory supply of similar goods of minimum value under

maximum number contracts within the period;
Available of minimum liquid assets, working capital lines of

Tender Forms to be submitted

Tender Submission Letter (PG3 1)
Tenderer Information Sheet (PG3-2)
Price Schedule for Goods (PG3-3A)
Price Schedule for Related Services (PG3-3B)
Specifications Submission and Compliance Sheet
(PG3-4)
Manufacturers Authorisation Letter (PG3 - 5) (if
required)
Bank Guarantee for Tender Security (PG3 6) (if
required)

 Documents require for eligibility of Tenderer

Documentary enrolled in trade organizations

Documents establishing legal and financial
autonomy

An affidavit confirming the legal capacity

An affidavit confirming that the tenderer is not
insolvent
A certificate as a proof of fulfilment of taxation
obligations

Country of origin declarations

To determine validity Period:

Complexity of Tender

Time for evaluation

Time for approval.

Between sixty 60-120 days
shorter or longer periods authorised by HOPE
Extension no later than 10 days before expiry
Also extension of TS 28 days beyond the expiry of
TV
No extension, no consideration further

Amount discourage the submission of frivolous

& irresponsible tenders

In favour of the Procuring Entity or as

otherwise directed on account of the
Tenderer
Remain valid for at least twenty eight (28) days
beyond the expiry date of the Tender Validity

Amount of TS
ITT- 29

Fixed amount Not > (3%) for each lot

Estimated value.
500,000
@ of
3%

TS: 15,000
TS: 14,000

Tenderer is The
amount of
Tender security should be set
slightly lower than that derived
from the above percentage so
that the tenderer unable to
determine reliably the actual
estimated value of the tender

Return of TS and verification

No, TS returned by the (TOC)
No, before contract signing (except nonresponsive)
Yes, non-responsive, after TER approved
Yes, responsive, after contract signing

Verified by the TEC Prior finalization

Not authentic no subsequent evaluation
Action in accordance with 64(5) of ACT

Forfeiture of TS
Withdraw the Tender within the validity;
Does not accept arithmetic correction;
Refuses to accept a Notification of Award;
Fails to furnish performance security;
Refuses to sign the Contract.

Verification of Tender Security

Verify when Guarantee submitted

Format

Security Amount
Validity

Authenticity

Take highest
care

Step-5 : W S M
Tenderer may modify, substitute or withdraw its Tender;
By sending a written notice ;
Duly signed by the authorised signatory properly sealed,
Shall include a copy of the authorisation (the power of

attorney), confirmed by an affidavit duly authenticated;

Prior to the deadline for submission of Tenders.

Elimination

Tender incomplete and

not passed in PE is
eliminated for further
evaluation

Adequacy
Authenticity

Acceptability
And Technical Compliance

Steps

Step 6:

Country of Origin Declaration

Step 7:

Technical Specifications and

documentary evidence

Step 8:

Tenderers Qualifications

Step 9:

Scope of supply

Eligible Tenderers

Legal capacity to enter into the Contract

No Conflict of interest
Not ineligible for F C C C
Not restrained (barred) on grounds defective
supply
Not be insolvent, be in receivership, be bankrupt
Fulfilled its obligations to pay taxes
Continued eligibility satisfactory to PE
Eligibility extend to Sub-Contractor

Qualification Criteria
Litigation

History : Number of Arbitration against the Tenderer

over a period
Over

all experience

Specific

Experience

Successful

completion of minimum one single of value within

last three years;
Production

Capacity

Satisfactory

completion of supply of similar goods of minimum

value [ ] under maximum [ ] contracts in the last [ ] years;

The minimum amount of liquid asset or working capital or credit

facility is Tk. [state value]

Corrupt, Fraudulent, Collusive

or Coercive Practices
Corrupt, Fraudulent, Collusive or Coercive practice of any
kind come to the knowledge of the Procuring Entity
PE shall call for a
written
explanation

HOPE May appoint a

committee

Explanation found
unsatisfactory ?

PE Present a Report to the HOPE

Hope review the Report and may debar

Financial Criteria

Experience
Criteria

Litigation History

General Criteria

Documentary evidence of the Tenderers

Qualifications to perform the Contract

Steps

Step 10:
Step 11:
Step 12:
Step 13:
Step 14:
Step 15:

Conform to requirements
Check of tax, VAT etc.
Correction of A. Errors
Price modifications, discounts
Factors affecting economic value
Un-priced items

Financial comparison of Responsive Tenders & identify

lowest evaluated Tender

Arithmetical Error

oWord

prevail over figures;

oUnit Price Prevail in multiplication & than total;
oTenderer must accept correction otherwise
disqualification;
oForfeiture of TS when disqualification.

If lowest price significantly higher than the official estimate

or available budget or both, but is within an acceptable
range of the market price levels,
TEC may recommend either to accept the Tender, subject to
availability of budget or advise the Procuring Entity to
reduce the scope, subject to:
(a) the lowest Tenderer remains the lowest after the scope
has been revised ;
(b) The tenderer agrees such reduction; and
(c) the objective of the Procurement will not be seriously
affected through this reduction.

If single Tender found responsive, it is accepted, if

market price is closed to the lowest evaluated
price;

If single Tender is received and fully compliant with

the requirement, TEC may accept the tender.

Tender with significantly low price

Tenderer offers a price significantly below the
official estimate then the TEC shall investigate
the real reasons behind quoting such a low price
and consider the Tender non-responsive if
(a) very clear, Tenderer is inexperienced and cannot price a Tender
properly;
(b) Can`t provide any justifiable reasons in support of his or her low
price

If the Tenderer quotes a low price because it happens to

enjoy some favorable conditions with respect to this
Tender, then the Tender shall be considered as
responsive and evaluated accordingly.

Schedule-3, Procurement processing and approval

timetable
( Week
is number)
Processing
& Approval
(weeks
is number)
AA

TSC

TEC/PEC

PD/PM/AO/HOPE

BoD

Ministry

CCGP

Total

PD/PM/AO

1-appvl
1-NOA

NA

NA

NA

HOPE

2-appvl
1-NOA

NA

NA

NA

BoD

2appvl
Board

NA

NA

11

Ministry/Minister

2-rcdn by
Secy.

NA

12

As required
Decision
before
Tender validity period

10+

13+

11+

15+

CCGP
(a) Simple

(b) Complex

2-sctny & obsn

by CEO
1-NOA
2-sctny & obsn
by HOPE
1-NOA

2-scrutiny & obsn

by HOPE
1-NOA
2-scrutiny and
observation
1-NOA

1-appvl by
Minister
3-sctny &
obsn by
Secy

1- recdn. by
Minister
3-sctny &
obsn by
Secy

1- recdn. by
Minister

As required
Decision before
Tender
validity period
CPTU-IMED

(PPRP II) Three-Week

Training on Procurement of
Goods, Works & Services
Fineurop-ESCB

Material deviation or reservation

affects in any substantial way the scope,
quality or performance

limits in any substantial way, the PEs

rights or the Tenderers obligations

whose rectification would unfairly affect the

competitive position of other Tenderers
presenting responsive
tenders

Minor deviation or reservation

Do not meaningfully alter or depart from the
Technical specification
Commercial terms/conditions
Or other requirements and

Any deviation shall be qualified in monetary

terms as far as possible.

Based on the qualification criteria specified in the TD

the TEC shall
verify to its satisfaction that the
successful tenderer is qualified to perform the
contract satisfactorily by
-

Contacting references
Obtain most up-to-date information
Visit premises, if needed

Three Distinct Streams of Approval

MINISTRY
DIVISION
DEPARTMENT
DIRECTORATE

CORPORATION
AUTONOMOUS BODY
SEMI-AUTONOMOUS
BODY

COMPANIES

Approves Tenders/ Proposals

HOPE

[CEO,SECY]

PD
PM
AO
MINISTRY
CCGP

HOPE[CEO,SECY]
PD
PM
AO
BOARD OF
DIRECTORS
MINISTRY
CCGP

AS DESIGNATED
BY COMPANYS
OWN
ADMINISTRATI
VE AND
FINANCIAL
DELEGATIONS

Determined by DoFP/Sub-Delegation except CCGP

Rule-2
PE means a Procuring Entity having administration and financial
powers to undertake Procurement of Goods, Works or Services using
public funds
HOPE means the Secretary of a Ministry or a Division, the Head of a
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
AA means the authority which, in accordance with the Delegation of
Financial Powers (DoFP), approves the award of contract for the
Procurement of Goods, Works or Services

CCGP is Cabinet is Committee on Government Purchase

Relevant Definitions

All Tenders for Goods and Works in Excess

of 50.00 Crore and all Proposals for
Consultancy over Tk. 10.00 Crore to be
approved by CCGP.

DOFP for Ministry/Division/Dept.

(Development)
Values Crore

Procurement Minister

Hope

Project Director

Goods

50

10

Works

50

14

Services

10

Any Method Except RFQ National

DOFP for Ministry/Division/Dept.

(Development)
Values thousand

Minister

Hope

Project Director

Goods

Max 500

Max 500

Max 500

Works

Max

Max

Max

1000

1000

1000

Goods / unforeseen physical

services for Foreign Mission

Max
1500

Max
1500

Max
1500

Method RFQ National

DOFP for Ministry/Division/Dept.

(Non-Development)
Values Crore

Procurement Minister Hope

Implementation
Divisional/
Regional

District

Upazilla

Goods

50

10

Works

50

14

Services

10

.30

DOFP for Public Bodies/Corporations.

(Development)
Values Crore

Proc

Minister

Large
Board

Small Implementation
Board
Large (CEO)

Small (CEO)

Goods

50

24

20

10

10

Works

50

24

20

14

14

Services

10

Ministry/
Division
(Dev/Rev)

Ministry/
Division
(Dev/Rev)

Ministry

Public
Companies

Ministry

Ministry

Own Procurement

Ministry

Secretary

Secretary

Secretary

DG

C.ENG

Secretary
or
As Authorized

Project
Director

Board
CEO

Rule-12
ONE may delegate the OTHER for
procurement

HOPE and PE of the OTHER under the Act and Rules are
HOPE and PE to (a) undertake the procurement
(b) give approvals as per the DoFP
(c) administer and supervise the Contract

implementation
ONE participates in the procurement process, monitors the
implementation, and takes over from the OTHER
OTHER obtains approval of the ONE on other matters

Directed towards end-users/beneficiaries

Rule-36(3)(a)

Ministry/Division/Department/Directorate
AA
HOPE
PD
PM
AO

EC

Evaluation Report (ER)

with
Recommendation for Award

HOPE
PD
PM
AO

DECIDES
AND
RETURNS

PE

[not Tenders or
Proposals]

EC

Purchase Proposal along with (ER)

with Recommendation for Award

HOPE

MINISTRYY

AA
SECRETARY ADD COMMENTS

MINISTER
DECIDES
AND
FORWARDS

PE

Rule-36(3)(a)

Ministry/Division/Department/Directorate

Purchase Proposal along with

(ER) with
EC Recommendation
for Award

HOPE

CCGP

RA
3

SECRETARY SUMMARY

PE

CCGP

DECIDES

SECRETARY

AA
EC

Evaluation Report
with
Recommendation for Award

SECRETARY

DECIDES AND RETURNS

PE

Rule-36(3)(b)
Corporation/Autonomous Body/Semi-Autonomous
Body
AA
Evaluation Report
with
Recommendation for Award

BOARD OF
DIRECTORS

AA

EC

Purchase Proposal along with

(ER) with
Recommendation for Award

HOPE
or
CEO
PD
PM
AO

HOPE
or
CEO

DECIDES
AND
RETURNS

FORWARDS
BUT
IF
CHAIRPERSON OF EC
DIRECTLY SUBMITS

BOARD OF DIRECTORS

HOPE
or
CEO
PD EC
PM
AO

PE

DECIDES
AND
RETURNS

HOPE
or
CEO

Rule-36(3)(b)

Purchase Proposal along with

(ER) with
EC
Recommendation for Award

HOPE
or
CEO

MINISTRYY

AA

Corporation/Autonomous Body/SemiAutonomous
SECRETARY ADD COMMENTSDECIDES AND FORWARDSPE
MINISTER

Purchase Proposal along with

(ER) with
ECRecommendation for Award

HOPE
or
CEO

CCGP

RA
SECRETARY

SUMMARY

Session: M1-5
Slide No.136/15

CCGP
DECIDES

PE

CPTU-IMED
(PPRP II) Three-Week
Training on Procurement of
Goods, Works & Services
Fineurop-ESCB

Companies registered under the companies

act, 1994 using public funds follow own
administrative and financial delegations with
regard to approval of the evaluation report
and NOA.

Approval Process ( R-101)

Rule- 101(1-3)

TEC

O
R

Raise objections

NOA before the expiry

date of the validity

Approve the
Recommendation

Finali
zed

PE

Evaluation Report

Approving
Authority

AA decides in compliance with the provision of the Act and Rules

on the Recommendation of EC
AA considering the over all recommendation of the TEC/PEC may
either:a. Approve the recommendation;
b. Seek any clarification from the TEC/PEC through the PE on
any specific issue in connection with the recommendation.
Or
Explaining the Reasons :
c.
d.

Reject the recommendation for a re-evaluation;

Reject the recommendation with instructions to reprocess.

Notification of Award

From the date of

Issuance NOA

Within 7 Working days of

receipt of the approval of the
award by AO

Within 7 Working
Days

NOA before the expiry date of

the validity

Supplier
Accepted in
Writing

Finalized

PE

NOA

Provide Final PCC with NOA for acceptance of Tenderer

Grounds for Rejection

Lowest
Evaluated
Price

Professional
Misconduct

All Tender
Non-Responsive

Reasons of
Rejection

Lack of
Evidence
of Effective
Competition

Unable to Propose
Completion of the
Delivery/Works

Even the
Stipulated
Time is
Reasonable
& Realistic

After Rejection of All

Tenders

Re-assess
(i) Official Estimate or
(ii) Budget or
(iii) Both
Consider Making Revisions
of
(i) Conditions of Contract
(ii) Design & Specifications
(iii) Scope of Contract
(iv) Or a Combination of the
Above Factors

Debriefing status and weakness

Next as Rule 102

Within 28 days

Fails to Sign

NOA before the expiry

date of the validity

Supplier
Fails to Provide PS

PE

SIGN

Form of Performance Security (PS)

Validity -28 Days, beyond complition ( includes warranty/DLP)
Goods-10%
Works-5-10%
For divisible
commodities-5%
Max-20% in
works when front
loading

Bank Draft

Tenderers
Option

PS
Pay Order

Bank Guarantee

Up to 2 crore Bank draft/PO, Only Bank Guarantee in International

Contract is a set of documents

(a) The signed Contract Agreement;
(b) The Notification of Award;
(c) The Tender and the appendix to Tender;
(d) Particular Conditions of Contract;
(e) General Conditions of Contract
(f) Technical specifications;
(g) General specifications;
(h) Drawings;
(i) Price Schedule and schedule of requirements for Goods;
(j) Other Documents including correspondence

[order of precedence]

Debriefing
outlines the relative status &
weakness only requesting to be informed of the
grounds for not accepting the Tender submitted
without disclosing information about any other;

In the case of debriefing confidentiality of the

evaluation process shall be maintained.

Measurement
of performance

Compliance
Compliancewith
contract
with contract
requirements
requirements

Resolution
of claims
and disputes
Management of
contract change

Scope
Rule- 38(1)

Administrative Tasks

Managerial Tasks

Financial Tasks

Technical Tasks

Contract Award

Payment

Implementation

Duration

Contract Conclusion

Dispute/Claim

Implementation of Contract Clauses

(GCC & PCC) in terms of activity
Define the allocations of duties and
risks related to the performance of
the Contract between Supplier and
PE

A contract for supply will generally be deemed

to be concluded when the goods have been
delivered in the right quantity, quality, & at
the agreed place and price

At this stage, payment for the goods becomes

due

Public Procurement Management

Md. Faruque Hossain

01817-145288, 01715663159