DISADVANTAGES OF

IMPLICATION OF
PPRA RULES
Bakhtawar Saleem- 2133066
Fatima Waqar - 2131040
Sabahatullah Khan 214112
Shoaib TauseefMohammad Zafar Sajjad - 2141157

CHANGED MECHANISM

Resistance to Change

Conflicts

Trainings

Over all costs up

CORRUPTION

Unfair competition
Not only in money but also in Quality
No laws or effective legal protection
Instead , an accretion of complex laws,
rules, regulations, codes and manuals

PROCESS IS BUREAUCRATIC

Number of unnecessary procedures

Short notice for bids

Prior notices to favored bidders

LIMITATION ON URGENCY

Its difficult to purchase items in urgency

Except in case of emergency ,disasters,

climates, accidents or wars etc

APPROVAL MECHANISM

Initiate procurement once approval of the

competent authorities.

PRE-QUALIFICATION OF
SUPPLIERS & CONTRACTOR
Expensive and technically complex equipment

CLARIFICATION OF BIDS

No bidder shall be allowed to alter or modify

after the bids have been opened

METHODS OF ADVERTISEMENT

Authority website
Newspaper shall appear in at least two
national dailies English and Urdu

NEGOTIATIONS

General Increase in the Bid

Polling of the Contractors
Mutually Decided Prices
Post Award Negotiations

ABUSE OF DOMINANCE

Prevent New Entrants

Cause of Favored Decisions
Predatory Pricing

LIMITING THE NUMBER OF

SUPPLIERS

Technical Specification rather than Generic

Financial Limits to Quote the Bid

BIDDING PROCESS

Opening Of Bids
Evaluation of Bids
Rejection of Bids
Competitive Bidding Limit

MARKET SHARING AND CARTEL FORMATION

PRODUCERS OF SIMILAR GOODS TENDS TO
SHARE MARKET BASED ON THEIR
UNDERSTANDINGS.

LOWER BID DILEMMA

Technical weak firms may opt for low bids in

order to secure the procurement.

UPSTREAM AND DOWNSTREAM SIDE

Equal attention is required to be paid on the

upstream side.

JUDICIAL, DISPUTE RESOLUTION

Slowness in dispute resolution mechanism

Transaction costs increases
Overall weakness in judicial system

LIMITATION ON REGROUPING AND SPLITTING

Rule
Announce One year plan
Should not divert with plans
Disadvantages
Rule is limiting the authority for any splitting
or regrouping.
Ad to place in advance for annual
requirements.

SPECIFICATION

Rule
Allow widest competition , Not favoring any
single contractor
But not applicable on public sector.
Disadvantages
Public sector can be biased.
Only applicable on private sector

DOCUMENTATION

Rule
A list of Documentation is mentioned for bidding.
Disadvantages
Interviewed Mr Najmus Rehmani
Too much Documentation
Too much time consuming and unable to
complete the process of documentation on time.
May have to visit different Govt Institution for
completing documentation which causes further
delays.

STAKEHOLDERS CONSULTATION
ON PPR REGIME
Development Partners

ADB
WB
EU
USAID

KEY POINTS HIGHLIGHTED

Meeting Held on April 9, 2012

Following Disadvantages were highlighted
Non transparent rules and regulations
discouraged the private sector's involvement
Advertisements were often placed near to
closing dates in newspapers with limited
coverage
Many government departments placed
restrictions on registration of bids.

CONTD.

There is no committee for answering bidders

complaints.
No internal desk for Misconduct.
BID Evaluation: Conclude by the members
that it is among the weakest area of PPRA.
Mechanism should be developed for Bid
Evaluation.

Any Question?