A Glimpse on Public

Procurement Rules,2008
 Session Contents
Challenges in Public Procurement Practice
 Regulatory Frameworks of Public Procurement
 Characteristics of PPR,2008
Important Definitions
Discussion on some Important Rules
 Challenges in Public Procurement
Ensuing Value for Money
Compliance of PPA,2006 and PPR,2008
Ensuring Transparency, Fair, Competition,
Equality
Stakeholders’ Interest
Sustainable Developments
Procurement Competence
 Challenges in Public Procurement
Procurement Competence for :
- Setting Objectives
- Developing Procurement Strategy
- Positioning Customer of Choice
Talent Scarcity
Fear for negative Publicity
Global Sourcing
 Challenges in Public Procurement
Inadequate Financial Resources
 Excessive Documentation
Adverse selection of Supplier/Contactor/Consultant
Application of range of legal aspects
Lack of Structured Procurement Unit
Insufficient Internal Control Policies
Tendency of Bidding Community to go to Court
 Regulatory Frameworks
• Primary Legislations
- PPA, 2006
• Secondary Legislations
- PPR,2008,
- e-Gp Guideline,2011
 Amendments to PPA,2006
15 July 2007
16 June 2009
 12 November 2009
July 18 2010
01 August 2016
 Amendments to PPR,2008
12 August 2009
29 March 2011
 01 April 2012
24 November 2016
10 June 2018
 PPA-2006 & PPR-2008

Total number of Sections 73 (PPA)

 Total number of Rules 130 (PPR)
 Total number of Schedule 14
Total number of STDs/SRFP 37 [ PG-12, PW-11, PS-14]
 Characteristics of PPR,2008
 Decentralized Competence
 Standardized Performance
 Enhancing Competition
 Post-Procurement Review
 Post-Qualification
 Complaint Mechanism
 Objects of Procurement
• Goods and Related Services
• Woks and Physical Services
• Services
Consulting Services
 Non-Consulting Services
- Related Services
- Physical Services
- Stand alone Physical Services
- Outsourcing
 Important Definitions (Rule-2)
Public Fund
Procuring Entity (PE)
 Head of Procuring Entity (HOPE)
Approving Authority
Authorized Officer (Rule-2)
 PPR-2008
 Rule-7 : Constitution of Tender or Proposal Opening Committees
 Rule-8 : Constitution of Tender/Proposal Evaluation Committee
 Rule-11 : Approval of Tender/Proposal
Rule : Delegated Procurement
 Rule-16 : Preparation of Procurement Plan etc.
 Rule-17 : Splitting of an Object of Procurement
 Rule-19 : Determination of Tender Validity
 Rule-22 : Tender Security
 Rule-25 : Forfeiture of Tender Security
 Rule-27 : Performance Security
 PPR-2008
 Rule-29 : Procedures for Preparation of Technical Specification
 Rule-33 : Rejection of all Tenders/Proposals/Quotations
 Rule-36 : Approval Process
Rule -43 : Maintaining Records of Procurement
 Rule-45 : Procurement Post Review
 Rule-54 : JVCA
 Rule-56 : Right to Complain
 Rule-61 : Use of Open Tendering Method
 Rule-63 : Use of Limited Tendering Method
 Rule-65 : Use of Two Stage Tendering Method
 PPR-2008
 Rule-68(KA) : Use of One Stage Two Envelope System
 Rule-69 : Use of Quotation Method
 Rule-74 : Direct Procurement Method
Rule -75 : Form of Direct Procurement
 Rule-76 : Use of Direct Procurement
 Rule-78 : Variation of Order and Extra Work Oder
 Rule-83 : Use of Open Tendering in International Competition
 Rule-89 : Framework Contract
 Rule-90 : Advertisement
 Rule-97 : Opening of Tender
 Rule-98 : Tender Evaluation etc.
 PPR-2008
 Rule-99 : Negotiation
 Rule-100 : Post-Qualification
 Rule-103 : Methods for Procurement of Intellectual and Professional
Services
Rule -104 : Other Methods for Procurement of Intellectual and
Professional Services
 Rule-113 : Submission of EOI
 Rule-115 : EOI Evaluation and Short-listing
 Rule-117 : Issue of RFP
 Rule-118 : Proposal Evaluation
 Rule-119 : Technical Proposal Evaluation
 Rule-120 : Financial Proposal Evaluation
 PPR-2008
 Rule-127 : Professional Misconduct
 Rule-128 : E-GP
 Rule-7 : TOC
 3 member committee, 1 from TEC, 2 from P.E
Approval by HOPE/Authorized Officer/Approving
Authority, if below HOPE
 Chairperson, Member, Member Secretary
 Fee like TEC
 Rule-8 : Constitution of TEC/PEC
 Minimum 5 and generally not more than 7; 2 members are mandatorily
external
 External members from Ministry/Division beyond the Ministry of P.E
 Presence and signature of 5 members inclusive of 1 external member
mandatory
Approving Authority(AA) will approve TEC/PEC
In case the AA is Ministry or Recommending Authority is CCGP, or Board of
Directors, Secretary, Ministry/Division/Chairperson of Board of Directors will
approve TEC/PEC as the case may be
 Number of TEC members reduced to 3 for low value purchase (Goods : BDT 25.00 lakh,
Woks : 300.00 lakh)
 Out of 3 members 1 from other PE of Ministry, Division, Agency the PE belongs to
Cont’d
• One TEC/PEC for all procurement, if the number of procurement is
limited
• More than one for evaluation of many tenders/proposals and
different tenders/proposals at the same time
• Separate TEC/PEC for complex procurement
• Selection of TEC/PEC members :
-Financial, Commercial, Technical Units of P.E
-P.E’s Ministry/Division or its Agency
-User unit
Cont’d
• In case of external members, experienced in financial, technical,
commercial or legal matters from other ministries/divisions/agencies
or experts from universities or reputed professional body or specialist
in the relevant field
• Members of TEC/PEC are qualified, professionals and of high integrity
and AA shall ensure it
• One member shall be designated as member secretary
• Presence of 3 members required for validation of TEC/PEC meeting
• ToR of TEC/PEC : Evaluation, recommendation, submission of EVR
Cont’d
• TEC/PEC member may be removed :
-Failing to disclose connection
-Remains absent in 2 consecutive meeting
-Direct breach of Section 64 of PPA,2006
-Transfer, death or absence in country
• Singular Certificate
• Collective Certificate
• TSC : Approved by HOPE or AO, maximum number of TSC is 3
• EVR shall be accompanied by Check list as per Rule 8(18)
Rule -11 : Approval of Tender/Proposal
AA may either-
• Approve TEC/PEC’s recommendation
• Seek clarification on EVR
• Explaining reasons :
-Reject recommendation and request re-evaluation
-Reject recommendation and instruct to reprocess
 Rule -12 : Delegated
Procurement
Approving Authorities :
Ministry/Division/Department/Directorate lacks in Technical
Capability to Procure
 Procurement delegated to capable P.E
 Nominate an officer for TEC and monitoring
implementation
Owner approves site, design, construction materials and
others
Rules [Rule-15,16 & 17]
Session: M1-8

Procurement Planning
 Objectives
Procurement Planning
 Provides overview
 Budget
 Time
 Methods
 Market
 Clears up need of assistance (specifications, contract
conditions etc.)
 Allows bundling (of similar needs) or splitting (into lots)
 Plans for Procurement Committees
 Prepares for Contract Administration
Further Approach to Planning
In order to stimulate thinking, to create options and to assist planning, consider the
following questions:
 What is to be done?
 When it is to be done?
 How it is to be done?
 Who is to do it?
 What resources are required?
 Who should know about it?

If you plan, you will be in control of the situation, rather than

having the situation in control of you
 Rule- 16(1)
Procurement Planning

Preparation of
Procurement Plan (PP)
is mandatory
for all PEs

Relates to Contract Strategy as discussed earlier

Careful & detailed procurement planning is essential for quality project execution
Benefits of Procurement Planning

Speeds up the procurement

process & reduces project
implementation delays

Contributes to enhanced
project quality & efficiency
Reduces possibility of error &
reduces subsequent work

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 Act and Rules

Procurement Planning is regulated by:

 Frequency
 Approval
 Publication
PPA
PPA  Splitting into packages/lots
2006
2006

 Nature & size of the Procurement

 Source of funding
 Limits & conditions
PPR
PPR
2008
 Forms
2008
 Procurement Planning

Good market knowledge is essential;

if you don’t know what is available, you cannot
formulate a good procurement request

Rule- 15 emphasizes knowledge

of the local market, local supply/works capacity
and national industry for the purpose of
Procurement Planning
 Procurement Planning

 but always (as said earlier):

Ensure Value for Money

by attracting
maximum competition
for the benefit of public interest
 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

 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
 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
 Procurement Plan

The Procurement Plan

shall be separately prepared for
Development Projects/Program
and for non development Budget

Annual Procurement Plan

shall be published
(notice board, website, bulletin)
Rule- 16
 Procurement Plan

PE shall, for its own purposes,

update the Procurement Plan
on a quarterly basis
to accommodate delays, re-tendering
and other unforeseen changes or constraints
 Procurement Plan
Rule- 16 (11):
PE keeps CPTU posted
with the Procurement Plans
above the thresholds specified in Schedule II
(Goods & Related Services: 10 million Tk.,
Works: 10 million Tk.,
Physical & Consultancy Services: 5 million Tk.)
To be published on CPTU website ensuring the minimum
Preparation time

Rule 16 (5) and 5 (Ka): Official cost estimate before

finalisation of tender
 Procurement Plan

The administrative issues of

Procurement Planning

&
exercise on
Preparation of Procurement Plan
 Development Project/Programme

Schedule
Total Procurement
V, Part A Plan
– – Schedule V, Part A

 Identifies packages for Goods, Works & Services

that are required under the development project/ programme

 Specifies each procurement package, giving it a unique code & considers the
expected cost of the package (as per the DPP/TPP), as well as the anticipated
dates when the procurement package will be supplied
 Total Procurement Plan for
Development Project/Programme
Schedule Format
Part A
 Total Procurement Plan for
Development Project/Programme
Schedule Format
Part A (cont’d)

CPTU-IMED Three-Week Training on Public

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Procurement Management M1-8 ESCB
 Development Project/Programme

Schedule V, Part A Plan

Total Procurement – – Schedule V, Part A

 A separate Schedule shall be provided for Goods,

Works & Services

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Total Procurement Plan for
Development Project/Programme
Similar for Goods and Services
(Works)
Annual Update of
Development Project/Programme

At the beginning of each financial year PE shall update the Total

Procurement Plan and the estimates cost for a Development
Project/Programme on an annual basis and in a rational manner
having regard to, among other things, the expected flow of funds
 Official Cost Estimate

Prior to tendering

PE shall prepare the Official Cost Estimate for the procurement before
finalization of the Tender or Proposal Documents or before invitation of
the Tender or Proposal
 Approval

 If Official Cost Estimate is higher than the Estimated Cost in Procurement Plan of the
Development Project/Program, it shall be approved by HOPE

 If not higher, it shall be approved by an officer authorized by HOPE or AA

 Except in case of National Procurement of Works under LTM, the Estimate shall be
kept sealed and opened by the Tender or Proposal Evaluation Committee at the
time of evaluation
Procurement Plan under Revenue Budget

Rule- 16(6)

At the beginning of each financial year, PE shall

prepare only one annual Procurement Plan for
Procurement under the Revenue Budget
 Annual Procurement Plan for
Development & Revenue Budgets

Schedule V – Part B shows how to complete the Annual Procurement Plan,

while Part C, Part D and Part E prescribe the formats for Goods, Works and
Services, respectively.

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 Annual Procurement Plan
Development & Revenue Budgets

(Goods)
Ministry/Division
Agency Budget:
Procuring Entity Name & Code
Project/ Programme Name & Code
 Annual Procurement Plan for
Development & Revenue Budgets

(Works)
Ministry/Division
Agency Budget:
Procuring Entity Name & Code
Project/ Programme Name & Code
 Annual Procurement Plan for
Development & Revenue Budgets
(Services)
Ministry/Division
Budget:
Agency
Procuring Entity Name & Code
Project/ Programme Name & Code

CPTU-IMED Three-Week Training on Public

52/43
Procurement Management M1-8 ESCB
 Annual Procurement Plan

Ministry/Division
Agency
Budget:
Procuring Entity Name & Code
Project/ Programme Name & Code

Packag Description of Unit Quantity Procurement Contract Source [Link] Time Code for Advertise Invite/ Tender Tender Approval Notification Signing of Completion Total Time
e Procurement Package Method & Approving of in Million Process Prequal (if Advertise Openin Evaluatio of Award of Award Contract of Contract (in Days)
No ---------------------------------- (Type) Authority Funds Tk. applicable) Tender g n

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Planned Dates

Planned Days

Actual Dates

Planned Dates

Planned Days

Actual Dates

Planned Dates

Planned Days

Actual Dates

Planned Dates

Planned Days

Actual Dates

Total Value of --------

Procurement

5
CPTU-IMED Three-Week Training on 3
Public Procurement Management M1-8 /
 Rule -36 : Approval Process
Approving Authorities :
 PD
 PM
HOPE
Board of Directorate
 Ministry
 CCGP
Public Companies ( As per article of Association)
Rule-36(3)(a)
Approval of Tender or Proposal
Ministry/Division/Department/Directorate

AA

HOPE Evaluation Report (ER) HOPE

PD DECIDES PE
EC
with PD
AND
PM Recommendation for Award PM RETURNS
AO AO
[not Tenders or Proposals]

AA
MINISTRYY

MINISTER

HOPE
DECIDES PE
Purchase Proposal along with (ER) SECRETARY
EC with Recommendation for Award
ADD COMMENTS
AND
FORWARDS
Rule-36(3)(a)
Approval of Tender or Proposal
Ministry/Division/Department/Directorate

RA 1
CCGP
PE
CCGP

Purchase Proposal along with 3 DECIDES

CCGP

HOPE
MINISTER
(ER) with
EC Recommendation for Award
SECRETARY SUMMARY ADD COMMENTS DECIDES

AA
SECRETARY

Evaluation Report
SECRETARY PE
with
EC Recommendation for Award
DECIDES AND RETURNS
 Rule-36(3)(b)
Approval of Tender or Proposal
Corporation/Autonomous Body/Semi-Autonomous Body

AA
HOPE HOPE
or Evaluation Report or
DECIDES
CEO with CEO PE
AND
PD EC Recommendation for Award PD RETURNS
PM PM
AO
AO
AA

BOARD OF DIRECTORS
DIRECTORS

DECIDES HOPE
BOARD OF

Purchase Proposal along with FORWARDS AND

(ER) with HOPE BUT
DECIDES
RETURNS
AND
or
EC Recommendation for Award or IF RETURNS CEO
CHAIRPERSON OF EC
CEO DIRECTLY SUBMITS

Fineurop
 Rule-36(3)(b)
Approval of Tender or Proposal
Corporation/Autonomous Body/Semi-Autonomous

AA
MINISTRYY

MINISTER
PE

HOPE
Purchase Proposal along with

CEO
SECRETARY DECIDES AND FORWARDS

or
ADD COMMENTS
EC (ER) with
Recommendation for Award

RA 1
CCGP
Purchase Proposal along with DECIDES
CCGP PE
CCGP

3 MINISTER
HOPE
(ER) with DECIDES

CEO
SECRETARY ADD COMMENTS
EC Recommendation for Award or SUMMARY

2
PROCESSING AND APPROVAL
(weeks in numbers): schedule III
AA TSC TEC/PEC PD/PM/AO/HOPE BoD Ministry CCGP
Total
PD/PM/AO 2 2 1-appvl NA NA NA 4 6
1-NOA
HOPE 2 3 2-appvl NA NA NA 6 8
1-NOA
BoD 3 3 2-sctny & obsn 2-appvl NA NA 8 11
by CEO Board
1-NOA
Ministry/Minister 3 3 2-sctny & obsn 2-rcdn by Secy. NA 9 12
by HOPE 1-appvl by
1-NOA Minister

CCGP 3 3 2-scrutiny & obsn 3-sctny & obsn As required 10+ 13+
by HOPE by Secy Decision
(a) Simple before
1-NOA 1- recdn. by Tender validity period
Minister

4 4 2-scrutiny and 11+ 15+

observation 3-sctny & As required
(b) Complex Decision before
obsn by Secy
Tender validity period
1-NOA
1- recdn. by
Minister

CPTU-IMED Three-Week Training on Public

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Procurement Management M1-8 ESCB
 Rules [Rule- 56–60]
Session: M1-12

Complaints &
Appeals
Complaints & Appeals

Objectives of Complaints Mechanisms

 Test of Transparency
 Credibility
 Public Confidence
 Trust
Who can complain ?

Person

Any Person who claims to have suffered loss or

damages due to breach of a responsibility assigned
with the PE, may lodge a complaint

Act- [Section 29]

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 Right to Complain

Grounds

 Pre-qualification documents not ready or available

 Failure to respond promptly to request for clarifications
 Failure by TEC to evaluate qualifications in accordance
with criteria set out in pre-qualification document
 Perceived unfair denial of pre-qualification
 Possible corrupt or collusive practice

Rule- 56
63/33
Grounds for Complaint cont’d

Methods: OTM, LTM, DPM, TSTM & RFQM

 Advertisement procedures not adhered to

 Tender documents not ready
 Failure to respond promptly to request for clarifications
 Framing technical specifications around small number
of suppliers/manufacturers of particular products
 Failure to hold pre-Tender meeting in accordance with
advertisement

Rule- 56
64/33
Grounds for Complaint cont’d

Methods: OTM, LTM, DPM, TSTM & RFQM

 Failure to open tender in accordance with
advertisement
 Opening any tender(s) received prior to the set
deadline
 Failure to open all tenders on time
 Failure to evaluate tenders in compliance with
stablished criteria
 Attempts by PE to ‘negotiate’ with successful tender

Rule- 56
65/33
Grounds for Complaint cont’d

Methods: OTM, LTM, DPM, TSTM & RFQM

 Corrupt or collusive practices

 Unfair or erroneous award of contract

 Breaking confidentiality at the time of

clarifications (in the case of TSTM)

Rule- 56
66/33
Grounds for Complaint cont’d

Services: RFP

 Breaking confidentiality after opening the

Technical Proposal

 Opening the Financial Proposals at the time of

opening the Technical Proposals

 Failure to evaluate in accordance with criteria

set out in RFP
Rule- 56
67/33
Grounds for Complaint cont’d

Services: RFP

 Attempt by PE to force a revision of fee rates

during negotiation (where price is a factor in
evaluation)

 Possible corrupt or collusive practices

 Perceived unfair and not impartial award of

contract

Rule- 56
68/33
No Right to Complain

No complain can be lodged on

 the choice of procurement methods for Goods,

Works and Services
 a refusal to short-list an Applicant
 the decision to reject applications for pre-
qualification, tenders, quotations or proposals
 a decision of award made by CCGP

Act- [Section 29]

69/33
Levels of Complaints

An aggrieved Person may complain

following Rules-56 & 57 at Two Levels

 Administrative Level
 Review Panel Level

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 Administrative Level

Complaints to Administrative Authority

 PE (PD/PM/PO/AO/LD) issuing TD/RFP

 HOPE
 Secretary of the Ministry or Division or Department

71/33
Review Panel

Complaints to Review Panel

Only when a Person has exhausted all his

or her options of complaints at the
Administrative Level

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Mode of Complaint for Review

Form of Complaint

 Addressed to Chairperson of RP duly sealed &

confidential through DG, CPTU, IMED, Planning
Commission, Dhaka
 Covering Letter to the address of DG, CPTU shall
mention the type of complaint
 Appeal shall include Registration Fee & Security
Deposit of specified amount in favor of DG, CPTU
 Opened only by the Chairperson of RP

73/33
Registration Fee & Security Deposit

RF & SD required to submit a complaint

 Below Tk.10 million, the RF is Tk. 10,000 & SD is Tk. 50,000
 From Tk.10 million to Tk. 50 million, the RF is Tk.15,000 &
the SD is Tk. 100,000
 Above Tk.50 million & up to 100 million, the RF is Tk.20,000
& the SD is Tk. 200,000
 Above Tk.100 million, the RF is Tk.25,000 & the SD is
Tk. 500,000
 For complaints on issues prior to Tender Opening, the RF is
Tk. 10,000 & the SD is Tk. 50,000

74/33
Details of Complaints Procedure

 Details are found in Further Reading

75/33
 Session: M1-12

Further Reading
Complaints & Appeals

76/33
Administrative Authority

Sequence of Complaints
PE
A Person submits complaint in writing within 7
calendar days of awareness of the circumstances, to
PE issuing TD/RFP document
PE has 5 working days to consider the complaint and
state the reasons for its rejection or take any
corrective action
If not satisfied, the Complainant addresses the same
complaint to HOPE within subsequent 3 working days
after elapse of 5 working days from the date of lodging
the complaint to PE

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Administrative Authority

Sequence of Complaints
HOPE
If Chairperson/Member of the TEC/PEC must forward the
complaint to the concerned Secretary within 3 working days;
keeping the Complainant informed
If under purview, HOPE shall issue a decision to the
Complainant within 5 working days
 stating the reasons for rejection, or
 indicating any corrective measures
If not satisfied, the Complainant addresses the same
complaint to the Secretary of the Ministry within subsequent
7 working days after elapse of 5 working days from the date
of lodging the complaint to the HOPE

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Administrative Authority

Sequence of Complaints
Secretary
 Decides within 5 working days as to
 Rejection of the complaint stating reasons
or
 Indicating corrective measures taken
informing the Complainant and keeping PE and CPTU posted

 If the Complainant is not satisfied with the decision of the

Secretary, he or she may appeal for the complaint to the Review
Panel within 7 working days of the receipt of such decision from
the Secretary

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Administrative Authority

When no Decision?

Besides, when the Complainant does not receive any

written decision from any tier of the Administrative
Level, he or she may directly lodge the same complaint
to the next higher authority , within subsequent 3
working days after elapse of 5 working days from the
date of lodging the complaint to the authority below the
next

80/33
 Administrative Authority

Flash Back
Complaint within 7 CD of Awareness

Decision by
PE : 5 WD
HOPE : 5 WD
Secy : 5 WD
Decision unsatisfactory
HOPE : 3 WD after elapse of 5 WD with PE
Secy : 7 WD after elapse of 5 WD with HOPE
No decision
within subsequent 3 WD after elapse of 5 WD from
the date of lodging the complaint to the authority
below the next

81/33
Crossing Administrative Tiers

Flash Back

The complaint to the next higher tier can

be pursued only when the Complainant
does not receive the written decision or is
dissatisfied with the decision of the
preceding tier within the time period
specified at each stage

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Review Panel Formation

Specialists

CPTU establishes a list of well-known specialists with

maximum of 10 from each of :
 Legal Experts
 Technical Experts on Public Procurement
 Specialists on Contract Management
(may be from FBCCI)

83/33
Review Panel Formation

Three to five Review Panels

Each Review Panel shall have at least one member from

each of the 3- category of Experts
Each Review Panel shall have a minimum of 3 members,
one of whom is nominated Chairperson
No officers of the Republic shall be included

84/33
Review Panel Formation

Appointment

 The CPTU appoints the Review Panel Members &

Chairperson on appropriate Terms & Conditions, with
prior approval of the Ministry of Planning

The Review Panel may request the CPTU to co-opt

maximum 2 members on a case-by-case basis, from the
lists of specialists

85/33
Complaint for Review

Processing the complaint

 Upon receipt of RF and SD from the complainant

select the Review Panel on rotational basis &
forward the complaint within 5 working days

 No compliant shall be entertained without RF &

SD; keeping the Complainant informed

86/33
 Commencing Review

Processing the complaint

 Upon receipt of a complaint or appeal in a due

manner, RP shall issue written notice to PE to
continue suspension of issuance of NOA

 RP’s decision within 12 working days informing

the Complainant , Secretary of the Ministry or
Division, CPTU & the PE

87/33
 Suspension of NOA while complaint under Review

NOA

 CPTU instructs PE to suspend issuance of NOA

under intimation to the Secretary of the
concerned Ministry or Division & the Complainant
 NOA shall not be issued by PE until disposal
of the complaint or appeal, being pursued

Tender evaluation & approval process shall however continue

88/33
 Exception to Suspension of NOA

NOA

 Suspension of issuance of NOA shall not be

applicable even if complaint or appeal being pursued;
provided that the HOPE, Secretary or the Minister
certifies that the particular procurement is inevitable
in public interest

 Basis of certification shall be specifically recorded

in the procurement proceedings &
such certification shall be considered final except
for judicial review

89/33
 Decisions Making

Except dismissal of the complaint or appeal, & forfeiture of SD,

for the reason the complaint being frivolous, RP may take
decisions separately or in combination as follows
 reject with reasons
 refer to provisions in Act and Rules advising parties to act
 advise PE to take remedial measures for actions contrary to
 suggest annulment of PE’s actions in whole or part
 suggest payment of compensations to complainant
 recommend procurement proceedings be completed

90/33
 Decisions

 Taken on majority basis

 Considered final & binding on both parties to act
 Made available for inspection to the general public
unless otherwise restricted
 Forms part of the record of procurement
proceedings

91/33
 Assistance by CPTU

 Issues a detailed work procedure of the Review Panel

 Maintains the list of Review Panels and Specialists
 Makes provision for payment of honorarium to RP members
@ maximum of Tk. 5,000 per meeting, but not
exceeding 5 meetings in total for one complaint
 Provides necessary logistic support to the Review Panel
 Under no circumstances be involved in the review
proceedings

92/33
 Rules [Rule-90]
Session: M1-10

Advertisement

93/10
Rule- 90
Advertisement

PE directly advertises for all Invitations

CONDITION: Procurements included in the APP

PROCUREMENT OPPORTUNITIES

Any other
IFPQ IFE REOI IFT
Rule- 90(2)
Choosing News Paper

Choosing National Level Newspapers of wide daily circulation

commonly known and ubiquitously accepted; carefully
applying sound judgment

ONE ENGLISH ONE BANGLA

LANGUAGE LANGUAGE

Avoid controversy in choice

95/10
Rule- 90(2)
Choosing News Paper
Shall advertise in maximum 1 local or regional Govt.
media listed newspapers for a maximum of 1 day;
 when estimated cost is more than Tk. 50 lakh and
PEs are outside Dhaka, in addition to national daily

reduce the size of the advertisement when cost is a

factor and higher the number of newspapers
ensure publication in each copy of every edition of the
day if more than ONE edition on that particular day

Follow-up publication
96/10
Rule- 90(2)

all invitations be posted in the PE’s

websites, if any
subsequent changes or amendments
relating to invitations be re-advertised
preferably in the same newspapers and
websites
all kinds of procurement documents be
ready for issuance on the date of publication

Keep track on corresponding events

97/10
Rule- 90(2) Particularly
Posting in Website
CPTU
website
GOODS
 Certain
10 M
procurement ABOVE
opportunities
SERVICES
be sent to CPTU 5M
ABOVE
for posting in
their website WORKS
10 M
ABOVE

Default may lead to rejection of Tenders

98
/10
Rule- 90(2)
Advertisement

MANDATORY
 ENGLISH NEWSPAPER or
PUBLICATION OF WIDE
INTERNATIONAL CIRCULATION;
or
INTERNATIONAL  UN DEVELOPMENT GATEWAY
PROCUREMENT MARKET (dgMarket);

OPPORTUNITIES
and if necessary

 FOREIGN TRADE MISSIONS IN BD

or BD TRADE MISSIONS ABROAD

Visit: [Link], [Link]

99/10
[Link]

International Procurement

One Option
100/10
[Link]

International Procurement

Another Option
101/10
Rule- 90(2)
Advertisement

PE FOLLOWS TIME-FRAME IN PUBLISHING ADVERTISEMENTS AS

SPECIFIED IN SCHEDULE II

DISCUSSED IN MORE DETAILS UNDER

DIFFERENT PROCUREMENT METHODS

See Schedule II
102/10
Rule-98 : Tender Evaluation
• TEC Evaluates Tender
• Tender shall be not be evaluated on any basis other than criteria
disclosed in the Tender Document
• Any member can give note of dissent explaining the reason(s)
• In case of note of dissent, the AA, at his/her own initiative may take
expert opinion
• A tender can be considered responsive if it complies all mandatory
requirement without material deviation
• TEC may consider a tender responsive if it contains minor or
insignificant deviation
• If minor deviation or oversight corrected, shall not affect key aspects
of tender
Rule-98 : Tender Evaluation
• TEC Chairperson may ask for clarification including the breakdown of
unit price
• Clarification leading to change in substance of tender can not be
asked for
• In case of clarification, confidentiality to be maintained failing which
tender shall be non-responsive
• The price of un-priced BOQ item included in the price of other items
• Arithmetic error can be corrected and communicated to the tenderer
for consent
• In case of unbalanced price, breakdown of price can be asked for and
for front loading performance security can be enhanced
• No requirement for minimum number of responsive tender
Rule-98 : Tender Evaluation
• National Tender, Goods ensure that IT, VAT included in the quoted
price
• International tender, Goods exclude CD, VAT, IT from CIP/CIF price; in
case of locally manufactured goods, exclude only VAT
• International tender, Works VAT, IT included
• Lot by lot basis tender, 80% of tender items to be quoted
• International tender, domestic preference ( Goods : 15%, works :
7.5%)
• Lowest evaluated price abnormally lower than the official cost
estimate, reject tender if the ground is not justifiable
• Scope can be reduced on budget constraint
Rule-98 : Tender Evaluation
• Scope can be reduced for price
• Among more than one tenders, only one responsive tender may be
accepted
• If only one tender received and found responsive may be accepted
• Tie among the lowest evaluated tender
• Lottery
Methods of Public procurement- G+W
 OTM-Open Tendering Method [ Rule-61]
 LTM-Limited Tendering Method [ Rule-63 & 64]
 DPM-Direct procurement Method [ Rule-74 to 82]
 RFQM- Request for Quotation method [ Rule 69 to 73]
 OSTETM- One Stage Two Envelop Tendering Method [68ka to 68 gha]
 TSTM- Two Stage Tendering Method[ Rule-65 to 68]

Open Tendering Method OTM: Most Preferred Method

 Adoption of Procurement Methods
Activity Approved /managed/done by Reference of Reference
Rules of Schedule
Open Tendering Method P.E 61 3, part : kha

Direct Procurement Method :

-Direct contracting
HOPE or AO by him/her 74-80 3, threshold : 2

-Additional delivery
-Variation order
-Extra work order
-Direct cash purchase
-Force Account

Limited Tendering method HOPE or AO by him/her 63 3, threshold : 2

Request for Quotation method HOPE or AO by him/her 69 3, threshold : 2

Two Stage Tendering method P.E 65 3

Single Stage Two envelope method HOPE or AO by him/her 68 (kaka) -
 Forms of DPM- Rule 75
 Direct Contracting [ Rule 76]
 Additional deliveries and repeat orders [ Rule 77]
 Variation Orders [Rule 78]
 Extra Work Orders [Rule 79-80]
 Direct Cash Purchase[ Rule 81]
 Force Account[ Rule-82]
 Public Procurement Committees
 Official Cost Estimate Committee- 3 members[ R-16(5)(ka)
(ka)]
 TOC- 3 members [ Rule 7]
TEC - 5 to 7 members (In general) [ Rule 8(1) & 8(2)]
 Technical Sub Committee (TSC) [ Rule 8(14)]
 Enlistment Committee-3 members [ Rule 52(3)]
 In case of service procurement TOC will be POC and TEC
will be PEC.
 Public Procurement Process
Activity Approved by Reference of Reference
Rules of Schedule
Identification of need : Goods, Works, Services P.E - -

Preparation of Annual Procurement Plan HOPE or AO by him/her 15,16,17 5, part : Kha

Preparation of Specification P.E 29 -

Preparation of official cost estimate HOPE or AO by him/her 16 -

Selection of Procurement Method* P.E or HOPE or AO by him/her

Preparation of Tender Document** P.E 4 1

Invitation of Tender P.E 90 10, part : gha

Constitution of TOC HOPE or AO 7

 Public Procurement Process
Activity Approved /managed/done by Reference of Reference
Rules of Schedule
Issue of NOA P.E 102 7
Submission of performance security Successful Tenderer 27,102 -

Signing contract AO by P.E 102 -

Contract Management P.E or PD 38,39,40 -
Records of procurement HOPE or AO by him/her 43 8
 Framework Agreement ( Rule-89)
Why Framework Contract ?
• Several Deliveries at a specified rate over a definite
period
• Avoid repeated tendering for same item over a year
• Obtaining Economies of scale
• Framework contract for Goods and related services
Applicability
• Through Open and Limited Tendering Method
• Not greater than market price
• For maximum 2 years for transport service
Options of Framework Contract
• Definite quantities with option to have additional
deliveries from sole supplier
• Approximate quantities with option to have the period
extended from sole supplier
• Several suppliers and approximate quantities with or without
extension of period.
 Framework Agreement ( Rule-89)
• Framework contract for transport service
• Follow Two envelope system : Technical and Financial proposal
• Evaluation of Technical proposal
• Then Financial Proposal
• Financial proposal of Technically responsive Tenderers opened
• More than one public [Link] and Framework Contract by Lead
Agency
• Standard Document not published yet.
 Rules [Rule- 103-112]
Session: M5-1

Methods for Procurement of Intellectual

&
Professional Services

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 Different Categories of Services

Rule-2

Related Services
Goods
linked to the supply of Goods

Physical Services
Works
with measurable outputs

Intellectual & Professional

advisory, design, know-how
Services
Physical Services (Non Consulting)
Outsourcing, C&F, security,
cleaning service etc. [(Rule 2(43)]

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 Intellectual & Professional

Key features

 Need for high quality proposals & services

 Ensuring economy and efficiency in:
 Services provided
 Project overall
 Promoting equal opportunity for all qualified consultants
 Encouragement of local Consultants
 Provision of professional, objective & impartial advice
 Ensuring transparency in the process

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 Goods/Works & Services

Differences
Goods/Works Services
 Product based – physical  Knowledge based –
deliverables intellectual deliverables
 Open competition, can be  Open followed by short-
with Pre-qualification listing
 Non-Public Opening of
 Public opening of Tenders
technical proposals
 Price is a major  Quality is a prime
evaluation factor evaluation factor
More follows
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 Goods/Works & Services
Differences

Goods/Works Services
 Tender Security  No such security

 Detailed Specifications  Terms of Reference

 Single Envelope (Except  Two Envelope
OSTETM)
 No negotiations (Except
 Negotiations mandatory
Direct Procurement)
 Requests for Proposals
 Tender Documents (TD)
(RFP)
Short-listing is a particular characteristic
119/32
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 Use of Consultants
Key areas

Preparation Services
Sector studies, Master plans, Feasibility studies, Design
studies etc.

Implementation Services
Tender Document, Procurement assistances, Construction
supervision, Project management, Quality management

Advisory services
Policy and strategy, Institution building, Training,
Technical/Operation advice
May also be unique and complex
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 Procurement Methods

Intellectual & Professional Services

Methods of procurement for Services depend on

the conditions to meet the Procuring Entity’s
specific needs

Choosing a method is contract strategic

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 Preferred Methods

Rule-103(4)

Two options according to nature & complexity

(a) Quality & Cost Based Selection (QCBS):

Consider the quality & cost of the services

(b) Fixed Budget Selection (FBS):

Available budget is fixed

Other Methods
Preceded follow
by short-listing
122/32
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 Other Methods

Rule-104 Relates to PE’s requirements

 Least Cost Selection (LCS)

 Community Service Organization Selection (CSOS)
 Single Source Selection (SSS)
 Individual Consultant Selection (ICS)
 Selection Based on Consultants Qualifications (SBCQ)
 Design Contest Selection (DCS)

HOPE’s or AO’s
Prior approval approval
of HOPE required
or AO required

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 QCBS

Rule-103(4)(a) Key considerations

C
O Takes into account-
N
D
(i) the quality of the
I
Proposal
T
I Cost
O (ii) the cost of the
Services Quality
N
S
Quality Over-weighs
Used in most cases

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB 2

 QCBS - Procedure

Rule-105 Steps

REOI
Combined
Evaluation

Short-listing Evaluation Technical

By Negotiation
PEC Financial

Issuance &
Receipt of RFP Award

Following RFP & Rules

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 FBS

Rule-103(4) b Applicability

C
O Appropriate only when-
N
D
I (i) the assignment is relatively simple
T & can be precisely defined
I
(ii) the budget is fixed
O
N
S

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 FBS - Procedure

Rule-106

Same as of QCBS except followings-

 RFP shall provide the available budget (excluding
applicable taxes)
 TOR prepared with due regard to budget
 Consultants provide breakdown of
costs in designated place

Highest Ranked Technical

Highest ranked Proposal
Technical within
Proposal Budget
invited for Negotiation
for negotiation

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB 2

 LCS
Rule-104 (a) Key considerations

C In cases where service is-

O
N (i) standard or routine nature. e.g.- audits,
D architectural & engineering design of non-
I complex works where established practice
T & standards
I
(ii) cost within the threshold
O
N
S

Threshold:
Threshold:max
m
Tk.
maxm Tk. 5 m.
5m

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 LCS - Procedure

Rule-107

Same as of QCBS except followings-

Technically qualified lowest evaluated

proposal invited for negotiation

Proposal PassingCost
Minimum TP treated equally
is the main

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 SSS

Rule-104(d) Applicability
C
Clear advantage over competition:
O
N  where rapid selection is essential
D  where only one firm or individual
I consultant has experience of exceptional
T worth
 for low value small assignments within
I
threshold
O
N
S Amendment

Threshold: Tk. 2 m for firms & Tk. 1 m for Individual (Maxm)

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 SSS (cont’d)

Rule-104 (d) Applicability

C In case of Downstream Work

O Continuation and engagement of initially
selected Consultant, provided that-
N
D  the Consultant performed the initial
I assignment satisfactorily
T  the need for such downstream assignment
I was anticipated in the initial RFP
O
N
Variation Order 15 percent [Exception - Higher Authority]
S
Continuity of technical approach, experience & professional liability

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 SSS (cont’d)

Rule-104 (d) Disadvantages

Use only in exceptional cases because it -

 does not provide the benefits of competition in
regard to quality & cost
 lacks transparency in selection
 encourage unacceptable and fraudulent
practices

Yet useful when situation demands

132/32
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 SSS - Procedure

Rule-110

Upon issuance of RFP

 the Selected Consultant submits a Technical and
Financial Proposal
 negotiations between the PEC and the Selected
Consultant
 negotiations on all aspects of Proposals (i.e.
Technical and Financial)

Aspects of negotiations are defined

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 CSOS

Rule-104 (c)
C
O Well qualified to assist in the
N preparation, management, &
D implementation of community
I development projects or
T Programs because of their
I involvement & knowledge of
O local issues,Community needs
N or participatory approaches
S
Reputable NGOs, Community Service or Voluntary Non-profit Organizations

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 CSOS - Procedure

Rule-109
Depending on-
i. size of the assignment
ii. knowledge of the inputs required

follow any of the methods -

a. QCBS
b. LCS
c. FBS
d. SSS

Implementation aspects of community activities and experience

& local knowledge may carry more points
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 ICS

Rule-112 (1)

C
O  Qualification and experience of
N
Individual Consultants are paramount
D
I
T  No team of staff required
I
O  No additional professional
N support required
S

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 ICS - Procedure

Rule-112
 May be selected following an EOI
 through advertisement
 approaching directly by the PE
 ICs judged & evaluated on the basis of
 academic background
 experience in the field of assignment
 knowledge of local conditions (as appropriate), as well as language &
culture
 The short listed Applicants be interviewed & selected Applicant be
negotiated on fees or reimbursable, the inputs available from PE, etc.
 Sign the contract

Alternate Candidates in order

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 ICS With Three CVs

Rule-112 Procedure

Employment of Individual Consultant without EOI

The conditions are -

 if the assignment is a continuation of the previous
 if the duration is less than 6 months
 if it becomes necessary to accomplish the
assignment on urgent basis due to natural
disaster
 The concerned individual is the most competent
for the service

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 ICS - Risks

Rule-112
Hiring of firm(s) to carry out wider
task would be more convenient for-
 coordination
 administration or
 collective responsibility

But
a large number of Individuals employed for
wider task not suitable

139/32
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 National Individual Consultants
Schedule IX Part (b), (c), (d)
 Any Qualified Bangladeshi National
 No Person dismissed from Public Service or convicted by any Court of Law

Schedule: 9 (c) Article 4 Amendment

For an assignment, the local Consultans’ payments will be in

commensurate with the qualification and expertise depending
on the current market price.

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 SBCQ
Rule-104 (b)

C
O PE may consider
N brief evaluation studies at critical decision points
D of projects
I executive assessment of strategic plans
T
I high level, short-term legal expertise
O participation in project review expert panels
N
S

Full-fledged
Very small assignments,selection
full-fledgednot Justified
selection not justified

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 SBCQ - Procedure

Rule-108

PE
 selects the consultants with the best possible
qualifications
 prepares the TOR and then REOI from Consultants’
data base
 short-list the Consultants based on their experience,
competence relevant to the assignment
 select the consultant with best qualification

SelectedSelected
consultantconsultant submits
submits Technical TP & FPProposal
and Financial

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 DCS

Rule-111 (1)

C Technical
O excellence &
innovation are of
N
prime considerations
D
I
T
I
O
N
S

Conceptual
Conceptual design
design for for monument,
physical project-monument, research
research centre,
centre, HQs, [Link]
transportation otc
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
 DCS (cont’d)
Rule-111 Procedure-General Considerations
 Short-listing : either on the basis of experience, capability & reputation
or by advertising the REOI
 Short-listed Applicants submit sealed Design Proposal containing
preliminary conceptual design & related cost estimate in response to RFDP
 Evaluation criteria for the Proposal may include,
 innovation
 aesthetic content
 adequate blending with surroundings
 efficient use of available space
 attractiveness for potential users
 incorporation of energy savings & other environmentally friendly
considerations

Prime
Prime is aestheticaspects
is aesthetic aspects in
in addition
addition to
totechnical
technicalcharacteristics
characteristics

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 DCS - Procedure

Rule-111 Steps

Issuance of Accepted N
RFDP E
G
O
Receipt of Technical &
Sealed
Open by Evaluation Winning
Financial T
POC by PEC Applicant I
Proposal Proposal
A
T
Prlmnry. Concptl.
Dsgn. &
Dtld. Engg. Dsgn., I
BOQ, Tech.
Est. Cost by Spec. & O
Short-listed a Supervision
Applicant N

CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB

 Summary
Prior Approval of HOPE or AO Preferred

QCBS Quality and Cost Based Selection

Short listed consultants compete on the basis of quality and cost
FBS Fixed Budget Selection
Simple and specific nature of services with a fixed budget

LCS Least Cost Selection

Standard or routine nature, and where the cost of the service is within the as 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
CPTU-IMED Three-Week Training on Public Procurement Management M5-1 ESCB
Question & Answer