CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.1/35 Session: M1-6 Act [Section- 31 to 34] Rules [Rule- 52,61-88] Procurement Method

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.2/35  Preferred Method for Goods & Works  Competition under non-discriminatory and equal terms equal terms Open Tendering Method (OTM) Objective

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.3/35 Open Tendering Method (OTM) Aspects of OTM:  Eligible Tenderers through public advertisement advertisement  Allowing the min m time for submission as specified specified  Urgent National need GoB may reduce time  Issuance of TD to Pre- qualified applicants only in case of Pre-Qualification only in case of Pre-Qualification Rule- 61

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.4/35 Application of Other Methods Limited Tendering Reasons Justification Rule- 62 Compliance with the conditions specified in the Rule Request for Quotation Two-Stage Tendering One-Stage Two Envelope Direct Procurement

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.5/35  G&W of their specialized nature Aircraft, locomotives, Specialized medical equipment, telecommunication equipments, silos, ports, harbours  Available only from a limited number Limited Tendering(LTM) (No Threshold)  An urgent need for Procurement  Competitive Tendering impractical Neither foreseeable Nor because of delay  Policy of standardize computers laboratory equipment research equipment Rule

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.6/35  From enlisted Suppliers or Contractors  Max.Tk. 25 lakh for Goods and related services and “Stand alone service”  subject to Threshold Limited Tendering (With Threshold)  Max. Tk. 2 Crore for Works and Physical services  Tender price exceeds the Specified threshold Approval of Contract from the next higher level Applicable only for Rule- 63(2) 4

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.7/35 Invitation under LTM  For Goods of a specialized natureinvite from the potential Suppliers directly.  For Goods of a specialized nature invite from the potential Suppliers directly.  For Procurement under Rule- 63 (2), invite Tenders from those enlisted Suppliers or Contractors.  Parallel ad. in PE’s website, if any, and in brief in the local pablications is recommended. Rule- 64

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.8/35 Enlistment  Applicable for LTM under Rule-63(2)  PE invite in support of their qualifications for enlistment  list by types and categories of Supply or Works, prepared by EC, approved by HOPE  PE shall update the list once in a year by advertisement Rule- 52 Constitution of EC has been covered in earlier session

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.9/35  Turnkey Contracts or Contracts for large complex nature of plants  Not possible Complete technical specifications in advance Rule- 65 Two-Stage Tendering  Supply, installation and commissioning and commissioning of processing plants of processing plants or works of complex or works of complex nature,Communication nature,Communication Technology Technology  Alternative Tech. approaches may not be available within the knowledge of PE knowledge of PE  Lacks the capability to prepare Specification.

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.10/35  Procedure for the Two-Stage Tendering Two-Stage Tendering  Second Stage in the Two stage  Evaluation at the First stage. Rule- 66 & 68 (Further Reading from Rule) Know more about :

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.11/35 Request for Quotation (RFQ) Rule- 69 Tk. 2 lakh (Each case.) Annual aggregate Tk. 10 lakh G W G W Revenue (Max) Development (Max) Tk. 5 lakh (Each case) Annual Tk. 20 lakh Tk. 10 lakh (Each case) Annual Tk. 40 lakh Subject to Threshold As :  Readily available Off-the- shelf Goods  low value simple Works and physical Services

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.12/35 Request for Quotation (RFQ)  Quotations for low value simple works: * Unit rate * a lump sum * a lump sum  No Tender or Performance Securities are required  Publish ad in notice board, PE’s website  At least three (3) responsive quotations  Purchase order in case of Goods, Contract for Works Works Rule- 70 & 73

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.13/35  Documentation Needed for the RFQ Method  Submission of Quotations & Evaluation of Quotations Quotations  Procedures for use of Request for Quotations Method Invitation Method Invitation Request for Quotation (RFQ) Rule- 70 & 73 ( Further Reading from Rule ) Know more about :

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.14/35 DP Direct Contracting Repeat Orders Variation Orders Forms of Direct Procurement Rule- 75 Attention not to abuse and its use circumstances specific

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.15/35 Only one Supplier or Contractor to submit an 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 Rule- 76

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.16/35 Only one Supplier or Contractor to submit an offer Rule- 76 From a Government-owned industry or factory using government own funds SSLI for specialized product,specification approved by agencies Not interchangeable with existing equipment in case of spare parts

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.17/35 Rule- 76  Emergency Procurement arising from Natural disasters within the thresholds Direct Contracting Maximum Tk. 50 lakh each case annual aggregate 5 crore. Maximum Tk. 50 lakh each case annual aggregate 5 crore.  Very urgent or essential nature, such as transportation services, event management Maximum Tk. 1 lakh or 5 lakh (HOPE) in each case For above Threshold Section-68 of ACT

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.18/35 Direct Contracting  Direct contracting with local communities in projects with poverty alleviation objectives projects with poverty alleviation objectives Mentioned in the Project Document PIC procure small works, material and direct labour Rule- 76

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.19/35  LGI may, procure small works, goods and direct labour through PIC,SIC,LCS or other Direct Contracting Following guidelines issued, by the LGD Following guidelines issued, by the LGD  Contracts for stand- alone Services may be renewed on annual or term basis, not more renewed on annual or term basis, not more than twice than twice Rule-76

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.20/35 Additional delivery or Repeat Order  Repeat order of similar nature  Contractwithin threshold as in Schedule II  Contract within threshold as in Schedule II  Most advantageous after price verification  Following a competitive Proc. process Rule- 77

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.21/35 Due to change of plans, design Variation (VO) or Extra Work Orders Rule-78 VO/EW for Works under the purview of DP Procuring Entity Original Contract or Any increase or decrease in quantities, introduction of new work items New works, not included in the original contract Unknown physical conditions at the site

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.22/35 Rule-77 & Financial Threshold Additional Deliveries of Goods and Repeat Orders Variation or Extra Work Orders 15% of the original Contract price Exception Exceptional cases urgently necessary to cmplete Exceptional cases urgently necessary to complete Beyond 15% approved by higher than the Approving Authority who approved the original contract

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.23/35 DCP Direct Cash Purchase (DCP) Low value Goods and urgent and essential Services Ex: Maintenance, repairs, transportation etc Tk 25,000 (each case) Annual Aggregate Tk. 5 lakh Rule- 81

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.24/35 FA Force Account Used for hiring of Direct labour for departmental needs Materials, tools and rental of additional equipment required use RFQ, Direct Contracting Each case Tk 2 lakh Rule- 82

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.25/35 Procurement Method (International)

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.26/35 OTM International Terms and conditions :  Sufficient time for the submission of Tenders, invitation to reach all potential Tenders, invitation to reach all potential Tenderers Tenderers  Specifications based upon international standards standards  Acceptable Tender currencies  Currency of Performance securities  Currency of the contract price Rule- 83

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.27/35 OTM International Terms and conditions :  Tender Document may allow for a domestic preference preference  local manufacturers, Suppliers and Contractors with a price advantage over Contractors with a price advantage over their international competitors their international competitors  Max. 15% of the delivered price for Goods  Max. 7.5% of the contract price for Works Rule- 83

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.28/35 Application of Other Methods Other International Method Two-Stage Request For Quotation Limited Tendering Direct Procurement Specially for Embassies & National Carriers Rule- 83

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.29/35 Following Circumstances arise: Rule- 85 RFQ (International) 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

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.30/35 Rule- 61 Up to Tk. 2 Crore ≥ ≥ 14 CD Time for Submission: OTM (Natl.) above Tk. 2 Crore up to Tk. 5 Crore ≥ ≥ 21 CD Above Tk. 5 Crore ≥ ≥ 28 CD Emergency following Catastrophe ≥ ≥ 10 CD

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.31/35 Rule- 61: Re-Tendering Up to Tk. 2 Crore ≥ ≥ 10 CD Time for Submission: OTM (Natl.) Disaster Situation ≥ ≥ 7 CD All other cases ≥ ≥ 14 CD

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.32/35 Irrespective of value Not less than (42) days Time for preparation (OTM): Inter Nat. For re- Tendering Not less than (28) days Rule- 83

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.33/35 Aspects All cases Time Not less than (14) days (14) days (7) days 63(b)(c) National disasters Below 7 days Re-Tendering Not less 7 days Time for preparation: LTM Urgent need for Procurement Rule- 64 except

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.34/35 AspectsTime Time for preparation: Two Stage Min. 42 days Rule- 66& 68 Technical Proposal 1 st Stage Priced ‘best & final’ Tenders 2 nd Stage Min. 21 days

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session:M1-6 Slide No.35/35 Time for preparation: RFQ Reasonably Justifiably minimum Reasonably Justifiably minimum Not more than ten (10) days Rule- 71