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Alternative Procurement Procedure

CA. Bhava Nath Dahal Advocate Public Procurement National Instructor

July 19, 2013

PMAN by BN Dahal

Sealed Quotation Direct Purchase Users Committee Force account NGOs Training /Designs specialties Repairs Rent Service Contract Consultant Qualification Selection (CQS)
July 19, 2013 PMAN- by BN Dahal 2

Some Complex Procurements

SOP 58 has some examples where PPA or PPR either has no answer or is impracticable.

Schedule 3 (Types of Goods Contract), Schedule 4 (Works Contract) and Schedule 5 (Service Contracts) have no procedures in PPA/PPR. Trading Items cannot be purchased based on PPA/PPR. Reverse auction is not accompanied by PPA.

July 19, 2013

PMAN- by BN Dahal

General Process- Same as Bid

Plan Estima Notice ning tion Openin Evaluation g Award

Sealed quotation a PPR97

Direct Purchase

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a (or by) r
PMAN- by BN Dahal



Users Committee a


Force Account
July 19, 2013


Sealed Quotation
Ceiling- Rs. 1m (goods) , 2m works at estimated cost (Estimation means Total estimation)

Slices, package or unit rate- allowed

Frame Work contract practiced by some entity. Notice period-15 days,
Validity - 45 days , Bank Guarantee - 75 days

SBD of PPMO; cost Rs. 300, If otherwise stated in PPA40/PP84 mutatis mutandis as BID.
July 19, 2013 PMAN- by BN Dahal 5

Sealed Quotation
If less than 3, further notice without saying RE Validity? Modification? Withdrawal? Opening?

No modification, withdrawal-First tier-offer(?) (game theory)

Public Opening- same formalities as bid. Evaluation similar as bid. Awards within 7 days with Performance Guarantee 5%.
July 19, 2013 PMAN- by BN Dahal 6

Direct Purchase- Minor purchase

If goods in stock, no direct purchase (PPR86)

Agreement is not required (?)

Annual restriction Rs. 3 lakh for goods, Rs. 3 lakh for other service; Rs. 5 lakh for works

Single Party Obligor - no twice within above limit. Written quotation to be obtained from at lease 3 suppliers if Estimate (AND/OR contract) is >50K.

No retention, no bank guarantee.

July 19, 2013 PMAN- by BN Dahal 7

Direct Purchase- Domestic Production

If produced in Nepal by many producers
direct from producer to the extent of Rs. 1.5 m.

Dealer and retail price published.

PE is treated as a dealer. Single purchase within a year. PPMO may test the price (ultraviolet comparing to PPA65(2)

If produced in Nepal by only one producer

direct from producer to any requirement
Dealer and retail price published.
July 19, 2013

PE is treated as a dealer.

PMAN- by BN Dahal

Direct Purchase- Single supplier

Technical skill or competency with single supplier (foreign or domestic).

Single supplier (proprietary goods or unique service provider) around reasonable situation.
Compatibility of existing facility (Proprietary goods)- to 30% of original cost.
Public notice required for three above.

Attachable with main (VO)- higher approval.

Written offer to be obtain
July 19, 2013

Negotiation required.

PMAN- by BN Dahal

Direct Purchase- Critical points

Practical ambiguity of minor limit- per case or total for each year?

If budget availed? If unexpected required?

Definition of proprietary goods/unique service.

July 19, 2013

PMAN- by BN Dahal


Direct Purchase- Design

Regular architectural designs, urban plan TOR to be prepared and design competition may be done. Only won participant is paying party. PPR87

July 19, 2013

PMAN- by BN Dahal


Direct Purchase- Training and CQS

Training, seminar, workshop Direct negotiation to the extent of Rs. 100,000, required higher approval for above amount. PPR82 Selection Based on Consultants Qualifications (CQS)- PPR83
Regular, small value, small timing but high skill requirement. Only few consultant available in the market For competitive, takes much time.
July 19, 2013 PMAN- by BN Dahal 12

Consumer Committee
Cost reimbursable method applied (PPR97)
Limit upto cost estimate of Rs. 6 million in total.

Work and associated service only. After completion works to be transferred to UC and repair by UC fund only. Notice publication or offer from UC.
Agreement by both party Advance (1/3rd) and settlement for next advance. All bills to be publicly audited and submitted to PE. Man work only.
July 19, 2013 PMAN- by BN Dahal 13

Force Account
Small works in scattered places, where bidder may not be interested.

Goods from PE and direct-labor

Single force account less than Rs. 100,000 (slicing permissible). Always higher approval required. PPR98

July 19, 2013

PMAN- by BN Dahal


PPA46/PPR99 Public awareness training, main-streaming, strengthening activities Based on NGO objectives (listed in standing list) 15 days notice for RFP; public opening and evaluation (same as bid) Lowest evaluated substantially responsive offer.

No Bank guaranatee (bidding or performance)

July 19, 2013 PMAN- by BN Dahal 15

Service Contract (PPR95)
Per case service contract

Upto Rs. 100,000- direct negotiation

Above 15days notice (national- valley, regional and notice board- other places) No Bank guarantee If performance is not good, correction notice then termination.

July 19, 2013

PMAN- by BN Dahal


Other cont.
Repair and Maintenance
Cost estimate required each case. If in own workshop approval may done based on job-card. Own workshop or outsider. Replacement of goods worth more than Rs. 5000.

House/Land Rent (PPR94)

Based on Rent Committee

Renew possible

July 19, 2013

PMAN- by BN Dahal


Common elements
Planning as usual (except minor purchases). Estimation approval as usual (workshop repair may be after repair based on job-card). Notice in most case or letter or post-purchase public notice. Most cases, agreement required Contract management is similar.

July 19, 2013

PMAN- by BN Dahal


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