Different Procurement Procedure As Per PPR-2008: Engr. Md. Helalur Rahman

Different Procurement
Procedure as per PPR-

2008
Presented by –
Engr. Md. Helalur Rahman
Executive Engineer (Maintenance)
Titas 50 MW Peaking Power Station
Bangladesh Power Development Board
Titas, Cumilla.
1
Procurement Methods
Role & Responsibility of PE
Choosing Procurement Method
National/International Procurement
Procuring an Object
Investment Process
Initiation
Initiation
Hand-over & use
A Regulator across the river
Spread-over initiation to hand-over

3
/3
Key features of strategy
Basic thinking
 Provides basis for the selection of procurement

method and contract type for procurement of a
particular object
 Proper choice of delivery and payment system

reduces conflicts on procurement of the object
Delivery system matters

Establishing Strategy
Right requirements
Strategy Builds
on:
A Road through the hills

Right Object
Right Quality
Right Quantity
Right Time
Right Place
Right Value for Money
Ultimate outputs
5
/3
Contract is an Agreement
Contract is a promise between parties
Contract
Simply expressed as
_______________________________
“an agreement, enforceable by law,

between a willing buyer and a willing
seller”
Under law
6/39
Contract: Offers and Acceptance
Valid Offers and Acceptance are precedents to

formation of a Contract
Offers & Acceptance

clearly laid out
in
PPA 2006, PPR 2008 and STDs
In our terms “Tender” is the offer and “NOA” acceptance

7/39
To be considered – Goods
PE takes into account the following when determining the method
of Procurement & consolidating of Goods packages
Availability
Availability
Estimated
Estimated Quality
Quality
cost
cost
Others
Others Price
Price levels
levels
GOODS
GOODS
Type
Type Capacity
Capacity
Risks
Risks Competition
Competition
Urgency
Urgency
Framework Contracts may be used for repetitive supply

8
To be considered – Works
PE considers the following, in the case of determining the

method of Procurement for Works
Prevalent
conditions
Estimated
Capacity
cost
WORKS Expected
Others
competition
Completion Geographic
date location
9
To be considered – Services
PE considers the following, in the case of determining the method

of Procurement for Intellectual & Professional Services
Nature
Estimated
Complexity
cost
SERVICES
Others Capacity
1
What is Procurement Method?
Act [Section- 31-34 & 37-39]
Procurement Method is the Procedure used in

converting requirements or requisitions into
Contracts
Established by PPA and elaborated in PPR
(as we heard earlier)
Ensuring Value for Money
Rules- 61,62,69,74 & 103,104

Choosing Procurement Method
In choosing procurement method, PE

must consider capacity of
local/national market, volume to be
purchased and contract value
PE decides about item, lot, package
Choosing Procurement Method is closely related to

Procurement Planning
12/39
Choosing Principles
PE must know the Market – opportunities, technical

solutions etc.
Splitting/Assembling Applicability of the

packages Procurement methods
…considering the nature & size of the procurement, by carefully

reviewing the proposed procurement activities & issues
13/39
Splitting/Assembling Procurement Objects
Four key terms
Item
A single article or unit in a list
with an identified quantity … 1,2,3 etc
Lot
A multiple number of items grouped together;
Any number of items can form a lot
14/39
Splitting/Assembling Procurement Objects
Package
A multiple number of Lots grouped
together
Number of lots: As PE’s judgment
Contract
Agreement through which the
Item/Lot/Package is purchased
15/39
Package/lot options
Consider the following Procurement object as an example:

Office equipment consisting of 7 items, namely 10 PC, 5 Printers, 1 Server, 4
Executive desks, 6 Office desks, 4 Executive chairs and 6 Office chairs
Office
Office equipment equipment
Office
equip.
IT Furniture
IT Furn.
equipment equipment equip. equip.
Exec. Office
PC Printers Server
furn. furn.
One Package Two Packages Five Lots

for for for
One Contract Two Contracts Five Contracts
Role & Responsibility of PE
In planning and choosing methodology:

 PE shall be very cautious in preparing packages, shall not
include too many items in one package, in order to ensure
that number of potential Suppliers is not reduced
 Generally, PE shall organize the lot by assembling only
those items that are normally supplied by the same range
of Suppliers
 For special supplies (e.g. Health Sector Goods), tenders
may be invited on item-by-item basis, in order to
encourage participation of manufacturers in the tendering
process
Rule- 15 (4), (5), (6)
17/39
Packages “few & large” or “more & small”
Grouping into large Procurement Packages

 Benefits from economies of scale – achievement of economy & efficiency
 Management aspects (PE’s capacity to manage the whole project)
 Risk aspect (where failure of a sub-supplier may unduly affect critical path)
 Benefits from participation of large international Tenderers
Splitting into small Procurement Packages

 Time element (procurement items are needed at different times)
 Business structure (some goods or services are not available from a single
source)
 Administrative costs of tendering
18/39
Packages “few & large” or “more & small”
What about competition, when

preparing packages?
19/39
Remember
 PE shall not generally split a Project into

components with the intention of
avoiding use of competitive procurement
methods or the approval of a higher
authority
 The total sum value of packages under a
Project determines the threshold value to
be applied
Threshold values relate to Procurement Methods
21/39
Procurement Methods
Now, we’ll have a closer look

at the different
procurement methods
22/39
Methods: Goods and Works
Distinct Methods
,6 2
61 Goods & Related Services
Compliance with the conditions

le- Works & Physical Services
Ru
specified in the Rules

OTM OSTETM TSTM LTM RFQM DPM
One Stage Limited Request for Direct
Open Two-Stage
Two Envlpe Tendering Quotation Procurement
Tendering Tendering
Method Tendering Method Method Method Method
Method
Open Tendering Method OTM: Preferred Method

Competition under transparent and equal terms
Taking into account the thresholds and conditions

CPTU-IMED Three-Week
Training on Public Procurement Management 23/39
Preferred Methods: Consultancy Services
QCBS Quality and Cost Based Selection
- 1 0 4
3
Short listed consultants compete on the basis of quality and cost
FBS Fixed Budget Selection
e -1 0
Rul
Simple and specific nature of services with a fixed budget
LCS Least Cost Selection

Prior Approval of HOPE or AO
Standard or routine nature, and where the cost of the service is within the prescribed price
limit
SSS Single Source Selection
Continuation of on-going or just completed, low value, speedy selection in emergency
situation, rare experience/qualification, urgent need (catastrophic event)
CSOS Community Service Organization Selection
Overall knowledge of community needs, local issues and community participation are
paramount
ICS Individual Consultant Selection
Qualified individual expert while no team work is required
SBCQ Selection Based on Consultants Qualifications
Very small high quality assignments, preparation & evaluation of competitive proposal is
not justified
DCS Design Contest Selection
Technical excellence and innovation are of prime considerations
Procurement Methods, Flow- Charts
Rule- 61, 62
 Processes and proceedings to be followed

in performing the Procurement Methods
are illustrated in Flow-Charts in Schedule
III, part B-F
 Time-line, Key activity, Approving
Authority are indicated in the Flow-Charts
OTM : Key Aspects
 Invite Eligible Tenderers through public

Rule- 61
advertisement
 Sell Tender Documents
 make them available on web-site
 Allow minm time for submission of Tender
 (Urgent National Need: GoB may reduce
time)
Open (Competitive) Tendering Method

OTM : Key Aspects (cont’d)
Open Tendering Method may be performed:

Rule- 61
 With or without Pre-qualification (open)
 In case of Pre-qualification held, only Pre-

qualified candidates are invited to submit a
tender
More on Pre-qualification in next session...

LTM: without Threshold
Rule- 63  G&W of specialized Aircraft, locomotives,

nature specialized medical
equipment,
1  Available only from telecommunication
a limited number equipments, silos,
ports, harbours
 An urgent need
for Procurement Not foreseeable
2
 Competitive and because of delay
tendering impractical
Computers,
 Policy of laboratory
3
standardization equipment,
research equipment
28/39
LTM: with Threshold
 Max.Tk. 25 lakh
for Goods and
63(1Gha)&(2)
related services
From enlisted Suppliers

4
or Contractors
Rule-
 Max. Tk. 3 Crore

for Works and
Physical services
If tender price exceeds the Approval of Contract

specified threshold by next higher
authority required
Contracts for Physical Services may be renewed on annual basis or for a

shorter period
29/39
Invitation under LTM
Rule- 64
 For Goods of a specialized nature invite from

the potential Suppliers directly
 For Procurement under Rule- 63(2), invite

Tenders from enlisted Suppliers or Contractors
Parallel adv. in PE’s website, if any, and in brief
in the local publications is recommended
Method with Limited Competition
30/39
Some provisions for LTM with Threshold
Rule- 63, 64 (below Thresholds)

 LTM may be applied:
- when time required and costs of going through
OTM are high compared to value of contract
 Estimated contract value shall be stated in Bill of
Quantities (Works below threshold)
 No tender security, no retention money,
 Yes, performance security
 In case of procurement under Rule 63(2) Lump-sum
Tender document may be used on the basis of
Activity Schedule
31/39
Direct Procurement Method (DPM)
Rule- 75 FORMS
Direct Additional Repeat Variation Extra

Contracting Delivery Order Order Work Order
Use of DPM is circumstance specific,

more in next session…
32/39
Request For Quotation Method: Definition
Act [Section- 32]

Definition
"Quotation" means the priced offer in
writing received from •unit rate
Tenderers/Suppliers for the
•lump sum
•cost+fee
procurement of readily available
standardised Goods, Works or
physical Services subject to the
financial limitation as prescribed by
the Rules
Request For Quotation Method (RFQM)
Rules [Rule- 69 to 73]
33/39
RFQM: Thresholds
 Low value simple Works and

 Readily available Off-the-
Revenue (Maxm)
physical Services
Tk. 5 lakh (Each case.)
G
9
Annual aggregate Tk. 30
-6
shelf Goods
lakh
n
ro
W Tk. 10 lakh (Each case)

le
te
Annual Tk. 60 lakh

la
Ru
e
Development (Maxm)
or
m
G Tk. 5 lakh (Each case)

Annual Tk. 30 lakh
Tk. 10 lakh (Each case)

W Annual Tk. 60 lakh
34/39
TSTM
Rule- 65
Turnkey Supply, installation
Contracts or and commissioning
Contracts for of Processing Plants
large complex or works of complex
nature of plants nature, Communication
Technology
 Not possible complete technical specifications in advance

 PE lacks the capability to prepare specifications
 Alternative Tech. approaches may not be available within the
knowledge of PE
Two-Stage Tendering Method (Competitive)
OSTETM
Applicable for same contracts as

TSTM, but PE is capable of preparing
the complete tender documents,
incorporating full specifications,
Bill of Quantities, Schedule of
Requirements, Designs etc.
One-Stage-Two-Envelope Tendering Method

(Competitive)
Direct Cash Purchase (DCP)
Rule- 81
Low value Goods,

Tk 25,000 (each
urgent and
case)
essential Services
DCP
Maintenance,
Example:
repairs, Annual
transportation etc Aggregate
Tk. 10 lakh
Under Approved Budget: Rule-74(3)

Force Account
Rule- 82
May be used for hiring
of direct Labour for Each case
departmental needs Max. Tk 3 lakh
FA Purchase of Materials, tools and

rental of additional equipment
required to perform departmental
work: Use other methods (RFQ,
Direct Contracting etc.)
Under Approved Budget: Rule-74(3)

Procurement Methods – International
 Some additional Terms and Conditions

are required in the Tender Documents
 Time limits for Preparation and Submission

of Tenders are also different
Rules- 83-87
CPTU-IMED Three-Week 39
Training on Public Procurement Management /3
OTM International
Rule- 83
Terms and conditions :
 Minimum Time Limit for submission of Tenders
(Schedule II), but
 sufficient time for the invitation to reach all
potential tenderers
 to enable them to prepare and submit tenders
 Specifications based upon international standards
 Acceptable tender currencies
 Currency of performance security & the contract
price
OTM International (cont’d)
Rule- 83
 Tender Document may allow for a domestic

preference
 To Local manufacturers and Contractors with
a price advantage over their international
competitors
 Max. 15% of the delivered price for Goods
 Max. 7.5% of the contract price for Works
Application of Other Methods
Rule- 83
Other International Methods
Two-Stage
One-Stage Two Envelope

Request For Quotation
Limited Tendering
Direct Procurement
Specially for Embassies &
National Carriers
RFQ (International)
Rule- 85
Following Circumstances arise:
In the case of Procurement of divisible commodities in bulk RFQ Method

following the Section 34(2) shall be used
Aspects
food grains, sugar, fertilizer, edible oils, fuel & animal feed & quoted in
established commodity markets
Procurement Process in different methods
including Pre-qualification process
44
CPTU-IMED Three-Week Training on Public Procurement Management M1-5
Methods (G,W,Phy. S)
 Open Tendering with or without Pre-

qualification
 One stage, two envelopes
 Limited Tendering with or without
Threshold/Enlistment
 Direct Procurement
 Two stage tendering
 Request for quotation
CPTU-IMED Three-Week Training on Public Procurement Management M1-5 45/35

Participation in Procurement Process
Act [Section-25] – Non-discrimination Rule-
47
The procuring entity shall not, unless the Government

otherwise decides, exclude a Person from participation
in public procurement on the basis of colour, nationality
or race, or any criterion not related to the qualifications
as specified in the procurement-related document or
any decision taken against a Person under this Act.
CPTU-IMED Three-Week Training on Public Procurement Management M1-5 46/35

Qualification of Persons
Rule- 48
Qualifications relate to:

 Professional and ethical standards as set out
in PPA/PPR
 Legal capacity
 No conflict of Interest
 Ability to implement the contract
 Technical qualifications & experience
 Financial capability
CPTU-IMED Three-Week Training on Public Procurement Management M1-5 ESCB 47/35

Eligibility
Act [Section- 26] Rules- [48, 49]
All participants must be “eligible”:

 Possessing the required minimum
professional/ ethical qualifications
 Providing necessary documentary

evidence of being qualified
- as detailed in the Procurement Documents

Pre-Qualification
Act [Section- 41]; Rules- [51]
Determination of qualified persons can be

performed as separate “Pre-qualification”
process
In such case, only Pre-qualified candidates

may participate in the Tender Process

OTM with or without pre-qualification
Open (Competitive) Method
 OTM: No pre-qualification:
Mandatory requirements mentioned in TD,
qualifications of tenderers evaluated under
evaluation process
 OTM: Yes Pre-qualification:

Mandatory requirements mentioned in the PQD,
qualifications of applicants evaluated under
separate pre-qualification process, Rule- 91–93

Purpose of Pre-Qualification
Pre-qualification is crucial
to submission of Tenders
where requirements to experience
&
financial and technical capabilities
are high

Benefits
Protects PEs from tenders submitted by unqualified

tenderers
Expedites PE’s task of evaluating tenders by limiting
Invitation to Tender to capable tenderers only
Provides an indication of whether there are adequate
number of tenderers
Saves unqualified applicants from the costs of
tendering
Increases chances for the qualified tenderers (they will
compete with qualified competitors only)

Nature and thresholds
Pre-qualification may be undertaken for different

procurements of specific nature and specified
thresholds
in
Schedule II
53
CPTU-IMED Three-Week Training on Public Procurement Management M1-5 ESCB /3
Pre-Qualification Recommended
Construction
Works
above Tk. 350
million
Management
Contracts
Maintenance
above Tk. 350
Works
million
above Tk. 35 million
Pre-
Qualification
large and
complex
Supply
and
Custom Designed installation
Equipment of Plant
above Tk. 35 million and Equipment
above Tk.150
million
Design and Build

Infrastructure
above Tk. 350
million
Schedule II 54
Pre-Qualification Process
Main steps Rules- 90–93
 Invite Eligible Applicants through public advertisement

 Sell Pre-qualification Documents and/or make them available
on web-site
 Allowing min. time for submission of Applications
 Public opening of Applications
 Applications Evaluation (pass/fail test based on
pre-disclosed qualification criteria)
 All applicants having passed the requirements shall be
pre-qualified (and invited to tender)
 Notification to all applicants, Publication
Pre-Qualification Forms
 Form of Invitation for advertisement, Schedule X

 Standard PQD for preparation of Pre-qualification
Document, stating qualification requirements
 Opening of timely submitted Applications by TOC
 Evaluation of Applications by TEC
More on pre-qualification under Module Four...

Limited Tendering with Threshold
Enlistment– Act- [Section 32]
This method presupposes list of approved,

qualified suppliers/contractors
Enlistment means engaging or securing a

Person/Undertaking for his/her service or
support for a possible future contract in the
procurement proceedings
Threshold values were presented earlier...

57
Enlistment Process
Rule- 52
 PE invite Applications for Enlistment or Renewal of
Enlistment by Annual Advertisement (Schedule X)
 Sell Application Documents based on Standard
Application for Enlistment (SAFE) with minimum
qualification requirements
 At least 7 days time for preparation and submission of
application
 PE provides for Enlistment Committee (EC) of at least 3
members for Applications Evaluation
58
Enlistment Process (cont’d)
Rule- 52
 EC evaluates the Applications on basis of the
qualification requirements set out in Documents and
prepares list of qualified Applicants
 HOPE or AO approves the list of qualified Applicants
 PE updates on annual basis by applying same
procedure
 PE maintains list(s) of enlisted/qualified potential
Tenderers for use in Limited Tendering Method (with
Threshold)
Updating also needs approval

59
Applicants’ Eligibility
General Requirements
 Valid Trade License

 Tax Identification Number (TIN)
 Bank Solvency Certificate
 Any Others (as specified by PE)
 Past experience in Works shall NOT
be necessary [Rule- 52 (4)]
Guidelines in SAFE
Lists
Type - examples
 Civil (Construction, Maintenance, Physical

services etc.)
 Mechanical
 Electrical
 Others/Miscellaneous according to PE use
61
Some Critical Points
Enlistment shall be PE-wise

A PE not maintaining lists of potential Tenderers/
Suppliers may use lists maintained by other key PEs, and
those posted for such purpose on CPTU’s website
Price of Application Documents shall be determined based
on its reproduction and administrative costs by each
individual PE, shall be non-refundable and in the form of
A/C Payee Postal Order in favor of the PE inviting
Annual Enlistment Fee shall be Tk.5000 and Renewal of
Enlistment Fee shall be Tk.2000 in the form of PO/DD in
favor of the concerned PE

Direct Procurement Method
Rule- 74
 Procurement from one source

 Not competitive & not transparent process
 Could encourage abuse or fraud
 Never use for favoring a supplier/contractor

or to discriminate among suppliers/
contractors
HOPE shall strictly control use of DPM

Forms of Direct Procurement
Rule- 75 Forms of DPM as mentioned …
 Direct Contracting
 Additional Delivery, Repeat
Order
 Variation Order
 Extra Work Order
Apart from these:
 Cash Purchase
 Force account

Rule- 76 Proprietary nature which can be
obtained only from the proprietary
source
Only one
Supplier or
Contractor to Critical plant components according to
previously established contract condition
submit an
offer
Exclusive dealer or manufacturer which

does not have sub-dealers

Rule- 76 Goods manufactured or assembled at
Government-owned industry or
factory
Only one
Supplier or
Contractor to SSLI for specialized product,
submit an specification approved by agencies
offer
Not interchangeable with existing

equipment in case of spare parts

Direct Contracting
Rule- 76
 Emergency Procurement arising  Very urgent or essential nature,

from Natural disasters within the such as transportation services,
thresholds event management
For above
Threshold
Section-68
of ACT
Maximum Tk. 50 lakh

Varies between 50 thousand
each case, in special case
to 20 lakh (separate for
5 crore with approval of
Revenue & Dev. Budget)
secretary

Direct Contracting
Rule- 76
 Direct contracting with local communities in projects with poverty
alleviation objectives
PIC procure small works,

Mentioned in the Project
material and direct labour
Document
68
Direct Contracting
Rule-76
 LGI may, procure small works, goods and direct

labour through PIC, SIC, LCS or other
Following guidelines issued , by the LGD
 Contracts for Physical Services may be

renewed on annual or term basis. [(Rule 76(5)]
69
Additional delivery or Repeat Order
Rule- 77
 Additional deliveries of Goods & related Services

 Repeat order of similar nature
 Contract within threshold as in Schedule II
 Most advantageous after price verification
 Following a competitive procurement process
70
Variation (VO) or Extra Work Orders
Rule-78
VO/EW for Works under the purview of DP
Any increase or decrease in quantities,

introduction of new work items Original
Procuring Contract
Entity or
New works, not included in the
original contract
Due to change of plans, design
Unknown physical conditions at the site

71
Financial Threshold
Rule-77 & 78 Additional Up to 15% of the

Deliveries of original Contract
1 price to be
Goods and Repeat
Orders approved by
original AA
Variation or
2 Extra Work Beyond 15% to 50%
Orders to be approved by
next higher authority
Exceptional cases
Exception urgently
necessary to
complete

Time Limits for Submission: OTM
Rule- 61
Up to Tk. 2 Crore ≥ 14 CD
above Tk. 2 Crore

up to Tk. 5 Crore
≥ 21 CD
Above Tk. 5 Crore ≥ 28 CD
Emergency following
Catastrophe ≥ 10 CD
Time Limits for Submission: OTM
Rule- 61: Re-Tendering
Up to Tk. 2 Crore ≥ 10 CD
Disaster Situation ≥ 7 CD
All other cases ≥ 14 CD
Time Limits for Submission: LTM
Rule- 64
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

Time Limits for Submission: RFQM
Rule- 71
Not more than ten

Reasonably (10) days
Justifiably minimum

Time Limits for Submission: OSTETM
As OTM
Time Limits for Submission: TSTM
Rule- 66& 68
Aspects Time
Technical Proposal
Min. 42 days
1 Stage
st
Priced ‘best &

final’ Tenders Min. 21 days
2nd Stage

Goods Procurement Process for National Competitive Tendering (NCT)
STD–PG3
Threshold: Above 25 lac
79
Sections
Section 1: Instructions to Tenderers (ITT)

Section 2: Tender Data Sheet (TDS)
Section 3: General Conditions of Contract (GCC)
Section 4: Particular Conditions of Contract (PCC)
Section 5: Tender and Contract Forms
Section 6: Schedule of Requirements
Section 7: Technical Specifications
Section 8: Drawings
Section 1: Instructions to Tenderers
ITT-Sub-Sections
A: General
B: Tender Document
C: Qualification Criteria
D:Tender Preparation
E: Tender Submission
F: Tender Opening and Evaluation
G:Contract Award
Interpretation
ITT- 2.1
 Day Calendar days unless
otherwise specified
 Standard Tender
STD provided by CPTU
Document (STD)
Document provided by a
 Tender Document Procuring Entity to a
Tenderer
 Tender Submitted by a Tenderer

Corrupt, Fraudulent, Collusive
or Coercive Practices
ITT- 4
Compliance : The Provisions of Section 64 of the

ACT
Abiding : Code of ethics ( Rule-127)

Not engages : 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 Explanation found

a written unsatisfactory ?
explanation
HOPE may
appoint a PE Present a Report to the
committee HOPE
Rule- 127
Review and make

Recommendation Appropriate Decision by HOPE
to HOPE
Issue a Letter If debar ? Rule- 127(4)
Copy to the CPTU for inclusion in the Website, list of debarred persons
Eligible Tenderers
ITT- 5
 Legal capacity to enter into the Contract
 No Conflict of interest pursuant to Rule 55
 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 requirements extend to Sub-Contractor
 Government-owned enterprises being legally and financially
autonomous, operating under commercial law, not being a
dependent agency of the PE
Eligible Goods
ITT- 6
 Goods & Related Services to be Supplied from

Eligible Country
 Country of Origin considered for Eligibility
 “Origin” means the country where the Goods
have been mined, grown, produced…
 Origin distinct from the nationality of the Tender
Clarification of TD
ITT- 9
 To be decided by the PE, however, preferably before Two-Third of

time elapses
 Procuring Entity is not obliged, if not within time
 Respond in writing within five (5) working days Rule- 95(2)
 Forward copies of its response
 Clarification may lead to amend the Tender Document
 Procedure for issuing addendum to be followed
Pre-Tender Meeting
ITT- 10
 Minutes of the pre-Tender meeting
 Must Include clarification and answers
 Transmitted within one week after meeting R-94
 All those who purchased the TD
 Even those who were not in meeting
 Amendment through addendum not minutes
 Attending the meeting is not mandatory
Addendum
ITT- 11 Why addendum ?

.…… Own initiatives
……. Response to a clarification
…….. Result of Pre-Tender Meeting
 Circulated within 5 working days R-95

 Acknowledge within 3 working days R-95
 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 R-95
Qualification of Tenderer
Rule- 48
 Documentary evidence:
 Professional & ethical standards
 Able to implement the contracts
 Setting Qualification criteria for wide
Participation
Mandatory qualification in the Tender Documents

Qualification Criteria
predefined
ITT- 12
precise
minimum
setting pass
/fail criteria
rejection of
The documentary evidence for each of Tender ?
the qualification criterion
If not met will result rejection of Tender
C. Qualification Criteria
ITT- 13.1
The maximum
Litigation number of
History arbitration awards
The maximum [state number] number of arbitration

against the Tenderer over a period [state duration]
The maximum Two (2 ) arbitration against the Tenderer

over a period Three (3) years
See also 15.1 b
ITT - 14.1 (a)
Number of years of
Experience overall experience in
Criteria (overall) the supply of goods
and related services
The Tenderer shall have a minimum of [state number]

years of overall experience in the supply of goods and
related services.
ITT - 14.1(b)
Experience Criteria
(Specific)
The Tenderer shall have successfully completed minimum
[state number] numbers supply contract of similar goods
and related services within last [state number] years and
each with a minimum [state amount] value over the
period, as specified in TDS
The Tenderer shall have successfully completed minimum
one (1) supply contract of CNG Refuelling Station within
last Three (3) years, minimum value recommended at
least 70% of the estimated cost of the supply
ITT- 14.1(c)
Experience Criteria
(Supply/Production)
Production A minimum supply and/or
production capacity of Goods
Capacity
The minimum supply and/or production capacity of Goods is/ are:
[state supply and/or production capacity per year]
The minimum supply and/or production capacity of CNG

Refuelling Station is 1(one) set per year
ITT- 15.1
Financial Criteria
Availability of minimum liquid assets, net of other

contractual commitments, of the amount as specified in
the TDS
Satisfactory resolution of all claims under litigation cases

and shall not have serious negative impact on the financial
capacity of the tenderer.
ITT 15.1(a)
Financial Criteria
The minimum amount of liquid asset or working capital or

credit facility is Tk. [state value]
Criteria:
70-100% of estimated cost to be fixed as minimum liquid
asset.
Qualify for a multiple number of lots
ITT- 12.3
resources sufficient to
Lot 1 meet the aggregate of
the qualifying criteria
Lot 2 for the individual lot
experience not
Lot 3 separately applicable
for individual lot.
Applicable for Lot by Lot Tender

Subcontractor
Appointment of Subcontractor is allowed Rule-53
 Subcontractors shall be identified in Tender

 Subcontracting arrangement, if any, must appear
during Tendering
 May participate more than one Tender
Only as a Subcontractor
 Eligibility requirement extend to Subcontractor
Maximum allowable limit specified in TDS

Contents of Tender
ITT- 21 Tender Forms to be submitted
 Tender Submission Letter (PG3 – 1)

 Tenderer Information Sheet (PG3-2)
 Price Schedule for Goods (PG3-4A)
 Price Schedule for Related Services (PG3-4B)
 Specifications Submission and Compliance Sheet (PG3-5)
 Tender Security (TS). If Bank Guarantee is chosen as TS, use
Form PG3–7
Contents of Tender
ITT- 21
 The Valid Trade License
 A certificate as a proof of fulfilment of taxation
obligations
 Documents required for eligibility of Tenderer
 Documents establishing legal and financial autonomy (in
case of Government-owned entity)

 Any other document as specified in the TDS
To Qualify Goods
ITT- 27
Documentary evidence that
the Goods and Related
services conform to the
technical specifications and
standards
Detailed Item-by-item
Description commentary
To Qualify Tenderer
ITT- 28
Documentary evidence of the Tenderer’s
Qualifications to perform the Contract
Experience
Litigation
Financial
General
Criteria
Criteria
History
Criteria
Tender Prices
ITT- 24
Total price to be quoted in Tender submission Letter
as in Price Schedule
Total price of the Tender inclusive of all Taxes,

Customs and VAT (National)
Unconditional discounts in Tender

submission letter
Tender Prices & Discount
ITT- 24
Rate quoted in Price Schedule Form PG3-4A & 4B without discount
But
Discount inserted in Percentage (%) either in the single or multiple
lot(s) in the Tender submission letter and considered after
arithmetical correction by TEC Discount equally applicable for all
items of tender
Amendment
Rule 17(2)
Determination of Tender Validity
ITT- 29
To determine validity Period:
 Complexity of Tender
 Time for evaluation
 Time for approval.
Schedule II [Rule-19(1)]
Between sixty (60) and one hundred twenty
(120)days
shorter or longer periods authorised by HOPE

 NOA within Validity Period

(PE’s obligation)
 Tenders shall remain valid

(Tenderer’s Obligation)
ITT- 29
 Tenders shall remain valid for the
period specified in the TDS Submission
Deadline
 Validity period starts after the date of

Tender submission deadline
21 Days 90 Days
Validity Period
Extension of T. Validity
ITT -30 Request to tenderer
 Not later than 10 (ten) days before the expiry

 Correspondingly extend the validity of its Tender
Security for twenty-eight (28) days beyond the
new date for the expiry of Tender validity
 No modifications in Tender (consenting)
 Not be considered for subsequent evaluation (not
consenting)
Schedule II Rule-21 (2)

Extension of Validity of Tender Security
ITT- 30
To extend
 Consenting to extend Tender Validity

 Not agree, no forfeiture of tender security, no
subsequent evaluation
 Extend at least 28 days beyond new date for
expiring of Tender Validity period
Tender Security
ITT- 31
 Amount to 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- 31
Fixed amount Not > (3%) for each lot
Estimated value. 500,000 The amount of Tender
security should be set
@ of slightly lower than that
3% derived from the above
percentage so that the
TS: 15,000 tenderer unable to
determine reliably the
actual estimated value of
TS: 14,000 the tender
Amount of TS (Item by Item basis)
Rule 22.4 Exception
 One Tender security, amounting to minimum 2%

of the total value of the items offered by the
Tenderer
 Tender security in a separate envelope

Form of Tender Security (National)
ITT- 32
Bank
Draft Tenderer’s
Option
TS
Bank
Pay Order
Guarantee
PE shall keep all the options

Form of Tender Security (International)
Rule-22
 Only in the form of Bank

Guarantee
 Issued by an internationally
reputable bank
 Endorsed by correspondent
bank located in Bangladesh
 A local tenderer can submit BG issued by a
Scheduled bank of Bangladesh
Authenticity of Tender Security
ITT- 33 Authenticity
TS
 Verified by the TEC Prior finalization
 Not authentic no subsequent evaluation
 Action in accordance with 64(5) of ACT
Tender with Invalid TS is non-responsive

Return of Tender Security
ITT- 34 (Rule 26) Return
 No TS returned by the TOC

TS
 No TS before contract signing (except non-
responsive)
 Non-responsive ones except 1st, 2nd and 3rd after
TER approved
 Rest ones after contract signing
Even before the expiration validity period

Forfeiture of Tender Security
ITT- 35 Forfeiture
 Withdraws his 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
Tender Submission
ITT- 37
 Tenders shall be delivered by hand or by mail, including courier services
 On the basis of the Tender Document issued by the PE
 PE provides receipt , on request
 Electronic tender submission procedures (if any)
 PE may, at its discretion on justifiably acceptable grounds, extend the

deadline for submission of Tender
THANK YOU
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Different Procurement Procedure As Per PPR-2008: Engr. Md. Helalur Rahman

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Different Procurement

Procedure as per PPR-

A Regulator across the river

Spread-over initiation to hand-over

 Provides basis for the selection of procurement

 Proper choice of delivery and payment system

Delivery system matters

A Road through the hills

Contract is a promise between parties

“an agreement, enforceable by law,

Valid Offers and Acceptance are precedents to

Offers & Acceptance

In our terms “Tender” is the offer and “NOA” acceptance

Framework Contracts may be used for repetitive supply

PE considers the following, in the case of determining the

PE considers the following, in the case of determining the method

Act [Section- 31-34 & 37-39]

Procurement Method is the Procedure used in

Rules- 61,62,69,74 & 103,104

In choosing procurement method, PE

PE decides about item, lot, package

Choosing Procurement Method is closely related to

PE must know the Market – opportunities, technical

Splitting/Assembling Applicability of the

…considering the nature & size of the procurement, by carefully

Four key terms

Consider the following Procurement object as an example:

One Package Two Packages Five Lots

In planning and choosing methodology:

Rule- 15 (4), (5), (6)

Grouping into large Procurement Packages

Splitting into small Procurement Packages

What about competition, when

 PE shall not generally split a Project into

Threshold values relate to Procurement Methods

Now, we’ll have a closer look

Compliance with the conditions

specified in the Rules

Open Tendering Method OTM: Preferred Method

Taking into account the thresholds and conditions

LCS Least Cost Selection

 Processes and proceedings to be followed

 Invite Eligible Tenderers through public

Open (Competitive) Tendering Method

Open Tendering Method may be performed:

 With or without Pre-qualification (open)

 In case of Pre-qualification held, only Pre-

More on Pre-qualification in next session...

Rule- 63  G&W of specialized Aircraft, locomotives,

From enlisted Suppliers

 Max. Tk. 3 Crore

If tender price exceeds the Approval of Contract

Contracts for Physical Services may be renewed on annual basis or for a

 For Goods of a specialized nature invite from

 For Procurement under Rule- 63(2), invite

Method with Limited Competition

Rule- 63, 64 (below Thresholds)

Direct Additional Repeat Variation Extra

Use of DPM is circumstance specific,

Act [Section- 32]

 Low value simple Works and

W Tk. 10 lakh (Each case)