1. Procurement of Works -1
Ghana Shyam Gautam

2. Presentation Introduction Public Procurement Methods
Bid Document & Preparation
Provision in Act and Regulations
Bidder’s eligibility & qualification
Contents of Bid documents
Discussion 2

3. Choice of career and its Consequences….

4. Introduction Contract and Bid Documents
Contract is an offer and an acceptance
Contract is an agreement between two or more parties TO DO or NOT TO DO something that is enforceable by law . ( contract Act 1999)

5. Contract and Bid Documents..
Bid documents provide a bidder to make an responsive cost effective offer to the employer considering:
scope and quality of work,
Conditions (liability and risks of employer and Bidder)
Time for completion,
Payment modes etc.
Proper bid documents helps an employer to assess all the bidders Bid in equal footing and provides a basis for acceptance of Responsive, qualified and cost effective Bid.

6. Equal footing ?

7. Procurement Procurement is acquisition of goods, works or services
Procurement can be private or public
In Public Procurement goods, works and services are acquisitioned by government bodies, municipalities, state enterprises and private holdings performing public services.

8. Public Procurement Vs Private Procurement
National context
Public interest
Follow certain guidelines, rules and regulations
Time consuming
Defined methods
Equal opportunities
Competition necessary
Transparency necessary
Involvement of Public expending and Tax Payers money
Private
Profit oriented
Investors’ interest
Limitation of rules
Procurement is within time limit available
No transparency
Competition not necessary
Some large scale private projects follow public procurement process

9. Transparency in Procurement
Open tender as a general rule
Promotion of Competition
In Public Procurement very large portion of the national budget is spent for acquisition of works, goods and services
Public Procurement is one important activity of governance with high potential for corruption
Includes large chunk of money
Includes large contracts

10. Transparency in Procurement…
Public Procurement covers 20 to 30% of the gross domestic product
15 to 70% of the budget
Is tax payers money
The image of any government , particularly in developing world, is largely influenced by the quality and integrity of public procurement.

11. What is expected in Public Procurement
Value for money
Transparency of process and decisions
Non discrimination of treatment of vendors
Accountability of public officials
Quality of works, goods and services
Integrity in use of public money
Support to public policies
Responsiveness and efficiency

12. PROCUREMENT OF WORKS 12 12

13. Methods of Procurement
Selection of Procurement Method (Clause 8 of the Act and clause 20, 22 of the Regulation)
International Competitive Bidding
National Competitive Bidding
Sealed Quotation (upto 2 mln)
Direct Procurement (upto 0.5 mln)
User’s Group or Beneficiary Community (up to 10 mln)
Force Account (take approval from one step up higher authority)

14. Methods of Procurement
Selection of Procurement Method (Clause 8 of the Act and clause 20, 22 of the Regulation)
g. Lum sum (up to 20 mln)
h. Catlogue shopping
i. Limited tendering
j. Buy back
k. And others
procurement in special cases (clause 66 PA, and clause 145 -PPR)

15. Process/Stages
Open Competition May be Carried Out in One or Two Stages (Clause 11 of the Act)
Open Competition With Pre-qualification
Open Competition Without Pre-qualification

16. Two Envelope system
Two envelope system IS SELECTION OF POTENTIAL BIDDERS from 20 mln Nrs to 1000 bln Nrs CONTRACTS FOR WORKS/ GOODS in NCB
Technical and Financial proposal in separate envelope
QUALIFICATION IS VERIFIED BASED ON SPECIFIED QUALIFICATION CRITERIA IN BID DOCUMENTS and financial proposal is opened only technically successful bidders

17. STANDARD BID DOCUMENTS17 17

18. Bid Document Tender Notice Instructions to Bidders Bidding Data Sheet
Eligible Countries/optional
Forms of Bid, Qualification Information, Letter of Acceptance, and Agreement
General Condition of Contract
Special Conditions of Contract

19. Bid Document (cont.) Bill of Quantities Security Forms
Supplementary Information
Invitation for Bids
Specifications & Performance Requirements
Drawings

20. Bidder’s Eligibility & Qualification
Eligibility: the requirements to be met by the bidders to be eligible to participate in the bidding process
Qualification: the requirements to be met by the bidder to qualify to perform the works

21. WHY BIDDER’S ELIGIBILITY?
TO ENSURE EQUAL OPPORTUNITY
TO ENSURE FAIR COMPETETION
TO ENSURE FOR SELECTION OF GENUINE CONTRACTOR
TO PROTECT NATION’S INTEREST

22. WHY BIDDER’S QUALIFICATION?
BIDDER’S DEMONSTRATION TO QUILIFY FOR EXECUTION OF WORKS
TO ENSURE THE PROCUREMENT ENTITY FOR COMPLETION OF INTENDED WORKS WITH SPECIFIED QUALITY WITHIN THE COST & THE TIME

23. THINGS TO BE CONSIDERED:
Not allowed to specify any particular class of construction entrepreneur to participate or not to participate,
Ensuring that the maximum number of potential bidder are able to participate,
Formulation of qualification criteria shall be not to hurdle the competition but to be required level for satisfactory performance of the intended works.

24. THINGS TO BE CONSIDERED:
IF THE QUALIFICATION CRITERIA IS TOO
DEMANDING
- May Lose Competition
- Pay Higher Prices
WEAK
- Unsatisfactory performance
- Failure of Project

25. PROVISION IN PPA & PPR: ELIGIBILITY Firm Registration
Business Registration
VAT and PAN Registration
Tax Clearance Certificate or Tax Return Submission Evidence
Written Declaration about not being ineligible, no conflict of interest, not being punished for a profession or business related offense.

26. PROVISION IN PPA & PPR:
QUALIFICATION
Experience [Years of Standing, General, Specific]
Capability [AATO, Equipment, Manpower]
Resources [Financial]
Litigation History

27. PROVISION IN PPA & PPR:
The Employer reserves the Right to assess the Bidders Capabilities and Capacities to execute the Contract satisfactorily before deciding the award of contract.

28. But PROVISION IN PPA & PPR:
A bidder shall have to fulfill the qualification set forth in bidding document in order to win the contract
But
No qualification requirements shall be prescribed for the procurement of a work less than twenty million Nepalese Rupees in general

29. PROVISION IN PPA & PPR: Requirement for JOINT VENTURE
Form of Agreement shall be signed by all Joint Venture Partners to be legally binding on all partners,
One of the JV partner shall be In- Charge and authorized through a Power of Attorney signed by Legally Authorized Signatories from all partners,

30. Preparation of bidding document
Standard bidding documents are prepared by PPMO
Public entities change as per their requirements in Bid data Sheet and SCC

32. Remaining Process (Steps)
Bid Invitation
Bid submission
Bid opening
Bid evaluation
Contract Award

33. ANY QUESTIONS ????
THANK YOU