No.

MD(PPRA)2-1/2010
GOVERNMENT OF THE PUNJAB
SERVICES & GENERAL ADMINISTRATION
DEPARTMENT

(PUNJAB PROCUREMENT REGULATORY AUTHORITY

Tel. 042-99211490 Dated Lahore, the June 01, 2010

To

1. Principal Secretary to Governor Punjab.

2. Secretary to Chief Minister Punjab.
3. All Administrative Secretaries, Govt. of Punjab.
4. Inspector General of Police Punjab.
5. Accountant General Punjab.
6. All Divisional Commissioners in Punjab.
7. All District Coordination Officers in Punjab.
8. All Heads of Attached Departments.
9. Registrar, Lahore High Court, Lahore.
10. Superintendent, Govt. Printing Press (for publishing these rules in annual
gazette).

Subject:- AMENDMENT IN PUNJAB PROCUREMENT RULES 2009

(PUBLIC PRIVATE PARTNERSHIP)

The Government of Punjab is pleased to amend the Punjab Procurement Rules

2009 by addition of rules for Public Private Partnership Projects which are notified herewith.
 (IMRAN NASIR KHAN)
Managing Director PPRA
CC:

1. PS to Chief Secretary, Punjab.

2. PS to Chairman P&D Board.
3. PS to Additional Chief Secretary.
 GOVERNMENT OF THE PUNJAB
SERVICES & GENERAL ADMINISTRATION
DEPARTMENT

Dated Lahore, the June 01, 2010

Tel. 042-99211490

NOTIFICATION

No. MD(PPRA)2-1/2010. In exercise of the powers conferred by Section 26 of the Punjab

Procurement Regulatory Authority Ordinance, 2007 (Pb. Ord. XIX of 2007), the Government of
Punjab is pleased to direct that the following amendments shall be made in the Punjab
Procurement Rules, 2009 by addition of rules for Public Private Partnership Projects, namely:-

Short title and commencement.– (1) These rules may be cited as the Punjab
Procurement Rules, 2009 (Amended).

CHAPTER I
GENERAL PROVISIONS

2. (l) “Public Private Partnership” means a contractual arrangement between the public and
private sectors, built on the expertise and resources of each partner that best meets clearly defined
public needs through appropriate allocation of resources, risks and rewards;

(a) “bid” means a tender, or an offer, in response to an invitation, by a person,

consultant, firm, company or an organization expressing his or its willingness
to undertake a specified task at a price;

(b) “bidder” means a person who submits a bid;

(c) “competitive bidding” means a procedure leading to the award of a contract

whereby all the interested persons, firms, companies or organizations may
bid for the contract and includes both national competitive bidding and
international competitive bidding;

(d) “contractor” means a person, consultant, firm, company or an organization

who undertakes to supply goods, services or works;

(e) “contract” means an agreement enforceable by law;

(f) “corrupt and fraudulent practices” includes the offering, giving, receiving, or
 soliciting of any thing of value to influence the action of a public official or the
supplier or contractor in the procurement process or in contract execution to
the detriment of the procuring agencies; or misrepresentation of facts in
order to influence a procurement process or the execution of a contract,
collusive practices among bidders (prior to or after bid submission) designed
to establish bid prices at artificial, non-competitive levels and to deprive the
procuring agencies of the benefits of free and open competition and any
request for, or solicitation of anything of value by any public official in the
course of the exercise of his duty;

(g) “emergency” means natural calamities, disasters, accidents, war and

operational emergency which may give rise to abnormal situation requiring
prompt and immediate action to limit or avoid damage to person, property or
the environment;

(h) “lowest evaluated bid” means,-

(i) a bid most closely conforming to evaluation criteria and other

conditions specified in the bidding document; and

(ii) having lowest evaluated cost;

(i) “Ordinance” means the Punjab Procurement Regulatory Authority

Ordinance, 2007 (XIX of 2007);

(j) “repeat orders” means procurement of the same commodity from the same
source without competition and includes enhancement of contracts;

(k) “supplier” means a person, consultant, firm, company or an organization who

undertakes to supply goods, services or works; and

(l) “value for money” means best returns for each rupee spent in terms of
quality, timeliness, reliability, after sales service, up-grade ability, price,
source, and the combination of whole-life cost and quality to meet the
procuring agency’s requirements.

(m) “Public Private Partnership Board Punjab” means a board established

within the Government of Punjab comprising of:

1. Minister for Law & Parliamentary Affairs (Chairman)

2. Chairman P&D
3. Secretary Finance
4. Secretary of the Concerned Department.
5. Chairman Special Initiatives Entity
6. Vice Chairman Punjab Board of Investment & Trade
7. Four private sector individuals (to be nominated subsequently)

(n) “Public Procurement” means acquisition of goods, services or

construction of any works financed wholly or partly out of the public
 fund, including projects of Public Private Partnership, unless
excluded otherwise by Government;

(o) “Conflict of Interest” means -

(i) where a contractor, supplier or consultant provides, or could
provide, or could be perceived as providing biased professional
advice to a procuring agency to obtain an undue benefit for
himself or those affiliated with him;
(ii) receiving or giving any remuneration directly or indirectly in
connection with the assignment except as provided in the
contract;
(iii) any engagement in consulting or other procurement activities of
a contractor, consultant or service provider that conflicts with
his role or relationship with the procuring agency under the
contract;
(iv) where an official of the procuring agency engaged in the
procurement process has a financial or economic interest in the
outcome of the process of procurement, in a direct or an
indirect manner;

(2) The expressions used but not defined in these rules shall have the same
meanings as are assigned to them in the Ordinance.

3. Scope and applicability.– Save as otherwise provided, these rules shall apply to
all procurements made by all procuring agencies of the Government of the Punjab
whether within or outside the Punjab.

4. Principles of procurements.– Procuring agencies, while engaging in

procurements, shall ensure that the procurements are conducted in a fair and transparent
manner, the object of procurement brings value for money to the agency and the
procurement process is efficient and economical.

5. International and inter-governmental commitments of the Government of the

Punjab.– Whenever these rules are in conflict with an obligation or commitment of the
Government of the Punjab arising out of an international treaty or an agreement with a
State or States, or any international financial institution the provisions of such international
treaty or agreement shall prevail to the extent of such conflict.

6. Language.– (1) All communications and documentation related to

procurements of the Government of the Punjab shall either be in Urdu or English or both.
Except where a procuring agency is situated outside the territories of Pakistan and
procurements are to be made locally, the procuring agency may use the local language in
addition to Urdu or English.

(2) Where the use of local language is found essential, the original
documentation shall be in Urdu or English, which shall be retained on record; for all other
purposes their translations in local language shall be used:
 Provided that such use of local language ensures maximum economy and
efficiency in the procurement.

(3) In case of the dispute reference shall be made to the original documentation
retained on record.

7. Integrity pact.– Procurements exceeding the prescribed limit shall be subject to

an integrity pact, as specified by regulation with approval of the Government of the
Punjab, between the procuring agency and the suppliers or contractors.

CHAPTER II
PROCUREMENT PLANNING

8. Procurement planning.– Within one year of commencement of these rules, all

procuring agencies shall devise a mechanism, for planning in detail for all proposed
procurements with the object of realistically determining the requirements of the procuring
agency, within its available resources, delivery time or completion date and benefits that
are likely to accrue to the procuring agency in future.

9. Limitation on splitting or regrouping of proposed procurement.– Save as

otherwise provided and subject to the regulation made by the PPRA, with the prior
approval of the Government of the Punjab, a procuring agency shall announce in an
appropriate manner all proposed procurements for each financial year and shall proceed
accordingly without any splitting or regrouping of the procurements so planned. The
annual requirements thus determined would be advertised in advance on the PPRA’s
website as well as on the website of the procuring agency in case the procuring agency
has its own website.

10. Specifications.– Specifications shall allow the widest possible competition and
shall not favour any single contractor or supplier nor put others at a disadvantage.
Specifications shall be generic and shall not include references to brand names, model
numbers, catalogue numbers or similar classifications. However if the procuring agency is
convinced that the use of or a reference to a brand name or a catalogue number is
essential to complete an otherwise incomplete specification, such use or reference shall
be qualified with the words “or equivalent”.
Provided that this rule shall not apply to procurement made by public sector
commercial concerns on the demand of private sector client specifying, in writing, a
particular brand, model or classification of equipment, machinery or other objects.

11. Approval mechanism.– All procuring agencies shall provide clear authorization
and delegation of powers for different categories of procurement and shall only initiate
procurements once approval of the competent authorities concerned has been accorded.

CHAPTER III
PROCUREMENT ADVERTISEMENTS

12. Methods of advertisement.– (1) Procurements over one hundred thousand

rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website
in the manner and format specified by regulation by the PPRA from time to time. These
procurement opportunities may also be advertised in print media, if deemed necessary by
the procuring agency:

Provided that the lower financial limit for advertisement on PPRA’s website for open
competitive bidding shall be the prescribed financial limit for request for quotations under
clause (b) of rule 42.

(2) All procurement opportunities over two million rupees should be advertised
on the PPRA’s website as well as in other print media or newspapers having wide
circulation. The advertisement in the newspapers shall principally appear in at least two
national dailies, one in English and the other in Urdu.

(3) In cases where the procuring agency has its own website it may also post all
advertisements concerning procurement on that website as well.

(4) A procuring agency utilizing electronic media shall ensure that the
information posted on the website is complete for the purposes for which it has been
posted, and such information shall remain available on that website until the closing date
for the submission of bids.

13. Response time.– (1) The procuring agency may decide the response time for
receipt of bids or proposals (including proposals for pre-qualification) from the date of
publication of an advertisement or notice, keeping in view the individual procurement’s
complexity, availability and urgency. However, under no circumstances the response time
shall be less than fifteen days for national competitive bidding and thirty days for
international competitive bidding from the date of publication of advertisement or notice.
All advertisements or notices shall expressly mention the response time allowed for that
particular procurement along with the information for collection of bid documents which
shall be issued till a given date, allowing sufficient time to complete and submit the bid by
the closing date:

Provided that no time limit shall be applicable in case of emergency.

(2) The response time shall be calculated from the date of first publication of the
advertisement in a newspaper or posting on the web site, as the case may be.

(3) In situations where publication of such advertisements or notices has

occurred in both electronic and print media, the response time shall be calculated from the
day of its first publication in the newspapers.

14. Exceptions.– It shall be mandatory for all procuring agencies to advertise all
procurement requirements exceeding prescribed financial limit which is applicable under
sub-clause (i) of clause (b) of rule 42. However under following circumstances deviation
from the requirement is permissible with the prior approval of the PPRA,-

(a) the proposed procurement is related to national security and its publication
could jeopardize national security objectives; and
(b) the proposed procurement advertisement or notice or publication of it, in
any manner, relates to disclosure of information, which is proprietary in
nature or falls within the definition of intellectual property which is available
 from a single source.

CHAPTER IV
PRE-QUALIFICATION, QUALIFICATION AND DIS-QUALIFICATION OF SUPPLIERS
AND CONTRACTORS

15. Pre-qualification of suppliers and contractors.– (1) A procuring agency, prior

to the floating of tenders, invitation to proposals or offers in procurement proceedings, may
engage in pre-qualification of bidders in case of services, civil works, turnkey projects and
in case of procurement of expensive and technically complex equipment to ensure that
only technically and financially capable firms having adequate managerial capability are
invited to submit bids. Such pre-qualification shall solely be based upon the ability of the
interested parties to perform that particular work satisfactorily.

(2) A procuring agency while engaging in pre-qualification may take into

consideration the following factors, namely:

(a) relevant experience and past performance;

(b) capabilities with respect to personnel, equipment, and plant;
(c) financial position;
(d) appropriate managerial capability; and
(e) any other factor that a procuring agency may deem relevant, not
inconsistent with these rules.

16. Pre-qualification process.– (1) The procuring agency engaging in pre-

qualification shall announce, in the pre-qualification documents, all information required for
pre-qualification including instructions for preparation and submission of the pre-
qualification documents, evaluation criteria, list of documentary evidence required by
suppliers or contractors to demonstrate their respective qualifications and any other
information that the procuring agency deems necessary for pre-qualification.

(2) The procuring agency shall provide a set of pre-qualification documents to

any supplier or contractor, on request and subject to payment of price, if any.
Explanation.- For the purposes of this sub-rule price means the cost of printing and
providing the documents only.
(3) The procuring agency shall promptly notify each supplier or contractor
submitting an application to pre-qualify whether or not it has been pre-qualified and shall
make available to any person directly involved in the pre-qualification process, upon
request, the names of all suppliers or contractors who have been pre-qualified. Only
suppliers or contractors who have been pre-qualified shall be entitled to participate further
in the procurement proceedings.
(4) The procuring agency shall communicate to those suppliers or contractors
who have not been pre-qualified the reasons for not pre-qualifying them.

17. Qualification of suppliers and contractors.– A procuring agency, at any stage of

the procurement proceedings, having credible reasons for or prima facie evidence of any
defect in supplier’s or contractor’s capacities, may require the suppliers or contractors to
provide information concerning their professional, technical, financial, legal or managerial
competence whether already pre-qualified or not:

Provided that such qualification shall only be laid down after recording reasons
thereof in writing. They shall form part of the records of that procurement proceeding.

18. Disqualification of suppliers and contractors.– The procuring agency shall

disqualify a supplier or contractor if it finds, at any time, that the information submitted by
him concerning his qualification as supplier or contractor was false and materially
inaccurate or incomplete.

19. Blacklisting of suppliers and contractors.– The procuring agencies shall specify
a mechanism and manner to permanently or temporarily bar, from participating in their
respective procurement proceedings, suppliers and contractors who either consistently fail
to provide satisfactory performances or are found to be indulging in corrupt or fraudulent
practices. Such barring action shall be duly publicized and communicated to the PPRA:

Provided that any supplier or contractor who is to be blacklisted shall be accorded

adequate opportunity of being heard.

CHAPTER V
METHODS OF PROCUREMENT

20. Principal method of procurement.– Save as otherwise provided hereinafter, the

procuring agencies shall use open competitive bidding as the principal method of
procurement for the procurement of goods, services and works.

21. Open competitive bidding.– Subject to the provisions of rules 22 to 37 the

procuring agencies shall engage in open competitive bidding if the cost of the object to be
procured is more than the prescribed financial limit which is applicable under sub-clause
(i) of clause (b) of rule 42

22. Submission of bids.– (1) The bids shall be submitted in a sealed package or
packages in such manner that the contents are fully enclosed and cannot be known until
duly opened.

(2) A procuring agency shall specify the manner and method of submission and
receipt of bids in an unambiguous and clear manner in the bidding documents.

23. Bidding documents.– (1) Procuring agencies shall formulate precise and
unambiguous bidding documents that shall be made available to the bidders immediately
after the publication of the invitation to bid.

(2) For competitive bidding, whether open or limited, the bidding documents
shall include the following, namely:-

(a) invitation to bid;

(b) instructions to bidders;
 (c) form of bid;
(d) form of contract;
(e) general or special conditions of contract;
(f) specifications and drawings or performance criteria (where applicable);
(g) list of goods or bill of quantities (where applicable);
(h) delivery time or completion schedule;
(i) qualification criteria (where applicable);
(j) bid evaluation criteria;
(k) format of all securities required (where applicable);
(l) details of standards (if any) that are to be used in assessing the quality of
goods, works or services specified; and
(m) any other detail not inconsistent with these rules that the procuring agency
may deem necessary.
(3) Any information, that becomes necessary for bidding or for bid evaluation,
after the invitation to bid or issue of the bidding documents to the prospective bidders,
shall be provided in a timely manner and on equal opportunity basis. Where notification of
such change, addition, modification or deletion becomes essential, such notification shall
be made in a manner similar to the original advertisement.

(4) Procuring agencies shall use standard bidding documents as and when
notified by regulation by the PPRA:

Provided that bidding documents already in use of procuring agencies may be

retained in their respective usage to the extent they are not inconsistent with these rules,
and till such time that the standard bidding documents are specified by regulations.

(5) The procuring agency shall provide a set of bidding documents to any
supplier or contractor, on request and subject to payment of price, if any.

Explanation.– For the purpose of this sub-rule price means the cost of printing and
providing the documents only.

24. Reservations and preference.– (1) Procuring agencies shall allow all
prospective bidders to participate in procuring procedure without regard to nationality,
except in cases in which any procuring agency decides to limit such participation to
national bidders only or prohibit participation of bidders of some nationalities, in
accordance with the policy of Government of the Punjab.

(2) Procuring agencies shall allow for a preference to domestic or national

suppliers or contractors in accordance with the policies of the Government of the Punjab.
The magnitude of price preference to be accorded shall be clearly mentioned in the
bidding documents under the bid evaluation criteria.

25. Bid security.– The procuring agency may require the bidders to furnish a bid
security not exceeding five per cent of the bid price.

26. Bid validity.– (1) A procuring agency, keeping in view the nature of the
procurement, shall subject the bid to a bid validity period.
 (2) Bids shall be valid for the period of time specified in the bidding document.

(3) The procuring agency shall ordinarily be under an obligation to process and
evaluate the bid within the stipulated bid validity period. However under exceptional
circumstances and for reason to be recorded in writing, if an extension is considered
necessary, all those who have submitted their bids shall be asked to extend their
respective bid validity period. Such extension shall be for not more than the period equal
to the period of the original bid validity.

(4) Bidders who:

(a) agree to extension of their bid validity period shall also extend the
validity of the bid bond or security for the extended period of the bid
validity;

(b) agree to the procuring agency’s request for extension of bid validity
period shall not be permitted to change the substance of their bids;
and

(c) do not agree to an extension of the bid validity period shall be allowed
to withdraw their bids without forfeiture of their bid bonds or
securities.

27. Extension of time for submission of bids.– Where a procuring agency has
already prescribed a deadline for the submission of bids and due to any reason the
procuring agency finds it necessary to extend such deadline, it shall do so only after
recording its reasons in writing and in an equal opportunity manner. Advertisement of
such extension in time shall be done in a manner similar to the original advertisement.

CHAPTER VI
OPENING, EVALUATION AND REJECTION OF BIDS

28. Opening of bids.– (1) The date for opening of bids and the last date for the
submission of bids shall be the same. Bids shall be opened at the time specified in the
bidding documents. The bids shall be opened at least thirty minutes after the deadline for
submission of bids.

(2) All bids shall be opened publicly in the presence of the bidders or their
representatives who may choose to be present, at the time and place announced prior to
the bidding. The procuring agency shall read aloud the unit price as well as the bid amount
and shall record the minutes of the bid opening. All bidders in attendance shall sign an
attendance sheet. All bids submitted after the time prescribed shall be rejected and
returned without being opened.

29. Evaluation criteria.– Procuring agencies shall formulate an appropriate evaluation

criterion listing all the relevant information against which a bid is to be evaluated. Such
evaluation criteria shall form an integral part of the bidding documents. Failure to provide
for an unambiguous evaluation criteria in the bidding documents shall amount to mis-
procurement.
30. Evaluation of bids.– (1) All bids shall be evaluated in accordance with the
evaluation criteria and other terms and conditions set forth in the prescribed bidding
documents. Save as provided for in sub-clause (iv) of clause (c) of rule 36 no evaluation
criteria shall be used for evaluation of bids that had not been specified in the bidding
documents.
(2) For the purposes of comparison of bids quoted in different currencies, the
price shall be converted into a single currency specified in the bidding documents. The
rate of exchange shall be the selling rate, prevailing on the date of opening of bids
specified in the bidding documents, as notified by the State Bank of Pakistan on that day.

(3) A bid once opened in accordance with the prescribed procedure shall be
subject to only those rules, regulations and policies that are in force at the time of issue of
notice for invitation of bids.

31. Clarification of bids.– (1) No bidder shall be allowed to alter or modify his bid
after the bids have been opened. However the procuring agency may seek and accept
clarifications to the bid that do not change the substance of the bid.

(2) Any request for clarification in the bid, made by the procuring agency shall
invariably be in writing. The response to such request shall also be in writing.

32. Discriminatory and difficult conditions.– Save as otherwise provided, no

procuring agency shall introduce any condition, which discriminates between bidders or
that is considered to be met with difficulty. In ascertaining the discriminatory or difficult
nature of any condition reference shall be made to the ordinary practices of that trade,
manufacturing, construction business or service to which that particular procurement is
related.

33. Rejection of bids.– (1) The procuring agency may reject all bids or proposals at
any time prior to the acceptance of a bid or proposal. The procuring agency shall upon
request communicate to any supplier or contractor who submitted a bid or proposal, the
grounds for its rejection of all bids or proposals, but is not required to justify those
grounds.

(2) The procuring agency shall incur no liability, solely by virtue of its invoking
sub-rule (1) towards suppliers or contractors who have submitted bids or proposals.

(3) Notice of the rejection of all bids or proposals shall be given promptly to all
suppliers or contractors that submitted bids or proposals.

34. Re-bidding.– (1) If the procuring agency has rejected all bids under rule 33 it
may call for a re-bidding.

(2) The procuring agency before invitation for re-bidding shall assess the
reasons for rejection and may revise specifications, evaluation criteria or any other
condition for bidders as it may deem necessary.

35. Announcement of evaluation reports.– Procuring agencies shall announce the

results of bid evaluation in the form of a report giving justification for acceptance or
rejection of bids at least ten days prior to the award of procurement contract.

36. Procedures of open competitive bidding.– Save as otherwise provided in these

rules the following procedures shall be permissible for open competitive bidding, namely:-

(a) Single stage – one envelope procedure.– Each bid shall comprise one
single envelope containing, separately, financial proposal and
technical proposal (if any). All bids received shall be opened and
evaluated in the manner prescribed in the bidding document.

(b) Single stage – two envelope procedure.–

(i) The bid shall comprise a single package containing two

separate envelopes. Each envelope shall contain separately
the financial proposal and the technical proposal;

(ii) the envelopes shall be marked as “FINANCIAL PROPOSAL”

and “TECHNICAL PROPOSAL” in bold and legible letters to
avoid confusion;

(iii) initially, only the envelope marked “TECHNICAL PROPOSAL”

shall be opened;

(iv) the envelope marked as “FINANCIAL PROPOSAL” shall be

retained in the custody of the procuring agency without being
opened;

(v) the procuring agency shall evaluate the technical proposal in a

manner prescribed in advance, without reference to the price
and reject any proposal which does not conform to the
specified requirements;

(vi) during the technical evaluation no amendments in the technical

proposal shall be permitted;

(vii) the financial proposals of bids shall be opened publicly at a

time, date and venue announced and communicated to the
bidders in advance;

(viii) after the evaluation and approval of the technical proposal the
procuring agency, shall at a time within the bid validity period,
publicly open the financial proposals of the technically
accepted bids only. The financial proposal of bids found
technically non-responsive shall be returned un-opened to the
respective bidders; and

(ix) the bid found to be the lowest evaluated bid shall be accepted.
(c) Two stage bidding procedure.-

First stage

(i) the bidders shall first submit, according to the required

specifications, a technical proposal without price;

(ii) the technical proposal shall be evaluated in accordance with

the specified evaluation criteria and may be discussed with the
bidders regarding any deficiencies and unsatisfactory technical
features;

(iii) after such discussions, all the bidders shall be permitted to

revise their respective technical proposals to meet the
requirements of the procuring agency;

(iv) the procuring agency may revise, delete, modify or add any
aspect of the technical requirements or evaluation criteria, or it
may add new requirements or criteria not inconsistent with
these rules:

Provided that such revisions, deletions, modifications oradditions are

communicated to all the bidders equally at the time of invitation to
submit final bids, and that sufficient time is allowed to the bidders to
prepare their revised bids:

Provided further that such allowance of time shall not be less than
fifteen days in the case of national competitive bidding and thirty
days in the case of international competitive bidding;

(v) those bidders not willing to conform their respective bids to the
procuring agency’s technical requirements may be allowed to
withdraw from the bidding without forfeiture of their bid security;

Second stage

(vi) the bidders, whose technical proposals or bids have not been
rejected and who are willing to conform their bids to the revised
technical requirements of the procuring agency, shall be invited
to submit a revised technical proposal along with the financial
proposal;

(vii) the revised technical proposal and the financial proposal shall
be opened at a time, date and venue announced and
communicated to the bidders in advance; and

(viii) the revised technical proposal and the financial proposal shall
be evaluated in the manner prescribed above. The bid found
 to be the lowest evaluated bid shall be accepted:

Provided that in setting the date for the submission of the

revised technical proposal and financial proposal a procuring
agency shall allow sufficient time to the bidders to incorporate
the agreed upon changes in the technical proposal and
prepare their financial proposals accordingly.
(d) Two stage - two envelope bidding procedure.–
First stage

(i) the bid shall comprise a single package containing two separate
envelopes. Each envelope shall contain separately the financial
proposal and the technical proposal;

(ii) the envelopes shall be marked as “FINANCIAL PROPOSAL” and

“TECHNICAL PROPOSAL” in bold and legible letters to avoid
confusion;

(iii) initially, only the envelope marked “TECHNICAL PROPOSAL” shall

be opened;

(iv) the envelope marked as “FINANCIAL PROPOSAL” shall be retained

in the custody of the procuring agency without being opened;

(v) the technical proposal shall be discussed with the bidders with
reference to the procuring agency’s technical requirements;

(vi) those bidders willing to meet the requirements of the procuring

agency shall be allowed to revise their technical proposals following
these discussions;

(vii)bidders not willing to conform their technical proposal to the revised

requirements of the procuring agency shall be allowed to withdraw
their respective bids without forfeiture of their bid security;
Second stage

(viii) after agreement between the procuring agency and the bidders on
the technical requirements, bidders who are willing to conform to the
revised technical specifications and whose bids have not already
been rejected shall submit a revised technical proposal and
supplementary financial proposal, according to the technical
requirement;

(ix) the revised technical proposal along with the original financial
proposal and supplementary financial proposal shall be opened at a
date, time and venue announced in advance by the procuring agency:

Provided that in setting the date for the submission of the revised
technical proposal and supplementary price proposal a procuring
 agency shall allow sufficient time to the bidders to incorporate the
agreed upon changes in the technical proposal and to prepare the
required supplementary financial proposal; and

(x) the procuring agency shall evaluate the whole proposal in accordance
with the evaluation criteria and the bid found to be the lowest
evaluated bid shall be accepted.

37. Conditions for use of single stage two envelope, two stage and two stage
two envelope bidding procedures.-

Single stage one envelope bidding procedure shall ordinarily be the main open
competitive bidding procedure used for most of the procurement. Other appropriate
procedures of open competitive bidding shall be selected in the following circumstances,
namely:-

(a) single stage two envelope bidding procedure shall be used where the bids
are to be evaluated on technical and financial grounds and price is taken
into account after technical evaluation;

(b) two stage bidding procedure shall be adopted in large and complex contracts
where technically unequal proposals are likely to be encountered or where
the procuring agency is aware of its options in the market but, for a given set
of performance requirements, there are two or more equally acceptable
technical solutions available to the procuring agency; and

(c) two stage two envelope bidding method shall be used for procurement
where alternative technical proposals are possible, such as certain type of
machinery or equipment or manufacturing plant

CHAPTER-VII
ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS

38. Acceptance of bids.– The bidder with the lowest evaluated bid, if not in conflict
with any other law, rules, regulations or policy of the Government of the Punjab, shall be
awarded the procurement contract, within the original or extended period of bid validity.

39. Performance guarantee.– Where needed and clearly expressed in the bidding
documents, the procuring agency shall require the successful bidder to furnish a
performance guarantee which shall not exceed ten per cent of the contract amount.

40. Limitation on negotiations.– Save as otherwise provided there shall be no

negotiations with the bidder having submitted the lowest evaluated bid or with any other
bidder:

Provided that the extent of negotiation permissible shall be subject to the

regulations issued by the PPRA.
41. Confidentiality.–The procuring agency shall keep all information regarding the bid
evaluation confidential until the time of the announcement of the evaluation report in
accordance with the requirements of rule 35.

42. Alternative methods of procurements.–A procuring agency may utilize the

following alternative methods of procurement of goods, services and works, namely:-

(a) petty purchases.-

Procuring agencies may provide for petty purchases where the object of the
procurement is below the financial limit of twenty five thousand rupees. Such
procurement shall be exempt from the requirements of bidding or quotation of
prices:

Provided that the procuring agencies shall ensure that procurement of petty
purchases is in conformity with the principles of procurement prescribed in rule 4:

Provided further that procuring agencies convinced of the inadequacy of the

financial limit prescribed for petty purchases in undertaking their respective
operations may approach the Government of the Punjab for enhancement of the
same with full and proper justifications.

(b) request for quotations.-

A procuring agency shall engage in this method of procurement only if the

following conditions exist, namely:-

(i) the cost of object of procurement is below the prescribed limit of one
hundred thousand rupees:

Provided that the respective Boards of Autonomous bodies are authorized to

fix an appropriate limit for request for quotations method of procurement
subject to a maximum of rupees five hundred thousand which will become
financial limit under this sub-rule:

(ii) the object of the procurement has standard specifications;

(iii) minimum of three quotations have been obtained; and

(iv) the object of the procurement is purchased from the supplier offering the
lowest price:

Provided that procuring agencies convinced of the inadequacy of the

financial limit prescribed for request for quotations in undertaking their
respective operations may approach the Government of the Punjab for
enhancement of the same with full and proper justifications;
(c) direct contracting.- A procuring agency shall only engage in direct contracting if the
following conditions exist, namely:-
(i) the procurement concerns the acquisition of spare parts or
 supplementary services from original manufacturer or supplier:

Provided that the same are not available from alternative sources;

(ii) only one manufacturer or supplier exists for the required procurement:

Provided that the procuring agencies shall specify the appropriate fora,
which may authorize procurement of proprietary object after due diligence;
and

(iii) where a change of supplier would oblige the procuring agency to acquire
material having different technical specifications or characteristics and
would result in incompatibility or disproportionate technical difficulties in
operation and maintenance:

Provided that the contract or contracts do not exceed three years in duration;

(iv) repeat orders not exceeding fifteen per cent of the original procurement;

(v) in case of an emergency:

Provided that the procuring agencies shall specify appropriate fora vested
with necessary authority to declare an emergency;

(vi) when the price of goods, services or works is fixed by the government or

any other authority, agency or body duly authorized by the Government, on

its behalf, and

(vii) for purchase of motor vehicle from local original manufacturers or their
authorized agents at manufacturer’s price.
(d) negotiated tendering.- A procuring agency may engage in negotiated tendering
with one or more suppliers or contractors with or without prior publication of a
procurement notification. This procedure shall only be used when,-

(i) the supplies involved are manufactured purely for the purpose of supporting
a specific piece of research or an experiment, a study or a particular
development;

(ii) for technical or artistic reasons, or for reasons connected with protection of
exclusive rights or intellectual property, the supplies may be manufactured
or delivered only by a particular supplier;

(iii) for reasons of extreme urgency brought about by events unforeseeable by

the procuring agency, the time limits laid down for open and limited bidding
methods cannot be met. The circumstances invoked to justify extreme
urgency must not be attributable to the procuring agency:

Provided that any procuring agency desirous of using negotiated tendering

 as a method of procurement shall record its reasons and justifications in
writing for resorting to negotiated tendering and shall place the same on
record.

43. On account payments.– All procuring agencies shall make prompt payments to
suppliers and contractors against their invoices or running bills within the time given in the
conditions of the contract, which shall not exceed thirty days.

44. Entry into force of the procurement contract.– A procurement contract shall
come into force,-

(a) where no formal signing of a contract is required, from the date the notice of
the acceptance of the bid or purchase order has been given to the bidder
whose bid has been accepted. Such notice of acceptance or purchase
order shall be issued within a reasonable time; or

(b) where the procuring agency requires signing of a written contract, from the
date on which the signatures of both the procuring agency and the
successful bidder are affixed to the written contract. Such affixing of
signatures shall take place within a reasonable time:

Provided that where the coming into force of a contract is contingent upon
fulfillment of a certain condition or conditions, the contract shall take effect
from the date whereon such fulfillment takes place.

45. Closing of contract.– (1) Except for defect liability or maintenance by the supplier
or contractor, as specified in the conditions of contract, performance of the contract shall
be deemed close on the issue of over all delivery certificate or taking over certificate which
shall be issued within thirty days of final taking over of goods or receiving the deliverables
or completion of works enabling the supplier or contractor to submit final bill and the
auditors to do substantial audit.

(2) In case of defect liability or maintenance period, defect liability certificate

shall be issued within thirty days of the expiry of the said period enabling the supplier or
contractor to submit the final bill. Except for unsettled claims, which shall be resolved
through arbitration, the bill shall be paid within the time given in the conditions of contract,
which shall not exceed sixty days to close the contract for final audit.

CHAPTER VIII
MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION

46. Record of procurement proceedings.– (1) All procuring agencies shall

maintain a record of their respective procurement proceedings along with all associated
documentation for a minimum period of five years.

(2) Such maintenance of record shall be subject to the regulations framed in this
regard from time to time.

47. Public access and transparency.– As soon as a contract has been awarded the
procuring agency shall make all documents related to the evaluation of the bid and award
of contract public:

Provided that where the disclosure of any information related to the award of a
contract is of proprietary nature or where the procuring agency is convinced that such
disclosure shall be against the public interest, it can withhold only such information from
public disclosure subject to the prior approval of the PPRA.

CHAPTER IX
REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES

48. Redressal of grievances by the procuring agency.– (1) The procuring agency
shall constitute a committee comprising of odd number of persons, with proper powers
and authorizations, to address the complaints of bidders that may occur prior to the entry
into force of the procurement contract.

(2) Any bidder feeling aggrieved by any act of the procuring agency after the
submission of his bid may lodge a written complaint concerning his grievances not later
than fifteen days after the announcement of the bid evaluation report under rule 35.

(3) The committee shall investigate and decide upon the complaint within fifteen
days of the receipt of the complaint.

(4) Mere fact of lodging of a complaint shall not warrant suspension of the
procurement process.

(5) Any bidder not satisfied with the decision of the committee of the procuring
agency may lodge an appeal in the relevant court of jurisdiction.

49. Arbitration.– (1) After coming into force of the procurement contracts, disputes
between the parties to the contract shall be settled by arbitration.

(2) The procuring agencies shall provide for a method of arbitration in the
procurement contract, not inconsistent with the laws of Pakistan.

50. Mis-procurement.– Any unauthorized breach of these rules shall amount to mis-
procurement.

51. Overriding effect.– The provisions of these rules shall have effect notwithstanding
anything to the contrary contained in any other rules concerning public procurements:

Provided that the prevailing rules and procedures will remain applicable only for the
procurement of goods, services and works for which notice for invitation of bids had been
issued prior to the commencement of these rules unless the procuring agency deems it
appropriate to re-issue the notice for the said procurement after commencement of these
rules.
52. Public Private Partnership Projects.- (1) The rules under this part shall be applicable for
procurement of goods, works
and services through Public Private Partnership;

(2) The rules for procurement of goods, works and services in shall mutatis mutandis apply
to the projects in which the design, financing and operations and maintenance will be undertaken
under any of the following mode of procurement;
(a) Service Contract
(b) Management Contract
(c) Lease Contract
(d) Build, Operate and Transfer
(e) Build, Own and Operate
(f) Design, Build, Finance and Operate and Transfer
(g) Build, Own, Operate, Transfer
(h) Build, Lease and Transfer
(i) Build and Transfer
(j) Rehabilitate, Operate and Transfer
(k) any combination or variation of the above modes or any other arrangement
under PPP mode approved by the Public Private Partnership Board.

(3) The competent authority to approve PPP Projects and related processes for all sectors
shall rest with the Public Private Partnership Board

(4) In case of any conflict in provisions or their interpretation within the rules, for
PPP projects rules under this part shall take precedence over rules in other parts.

53. Procurement Process under Public Private Partnership.- (1) Some or all the functions
and responsibilities of procurement planning and execution may be performed by the professional
transaction advisers and consultants subject to approval by the Public Private Partnership Policy
Board

(2) The Government shall appoint a committee for each Public Private Partnership
project for technical and financial evaluation of the project. The terms of reference of each such
committee shall be approved by the Government;

(3) Except otherwise provided in these rules all the Public Private Partnership contracts
and concessions shall be granted through national or international open competitive bidding, as the
case may be;

(4) The procuring agency may levy a reasonable fee for submitting requests for
proposals. Such fee shall not exceed Rs. 100,000/-;

(5) Bidding documents shall be prepared according to Rule 23 and shall also include the
following;
(a) minimum design and performance standards and specifications, land
and economic parameters;
(b) draft concession or management contract;
 (c) other documents as may be deemed necessary by the procuring agency
concerned;

(6) The instructions to bidders shall be unambiguous, comprehensive and fair to all
bidders and shall, as far as necessary and practicable, include but not be limited to the following
information;

(a) general description and objectives of the project;

(b) bid submission procedures and requirements, which shall include
information on the manner of bid submission, the number of copies of
bid proposal to be submitted, where the bids are to be submitted, the
deadline for the submission of bids and permissible mode of
transmission of bid proposals;
(c) Government undertaking such incentives to be provided, subsidies debt
financing, if any, and equity by government or other government
guarantees;
(d) bid security and bid validity period;
(e) milestone bonding;
(f) method and criteria, including the minimum amount and form of
equity, for the evaluation of the bids;
(g) formulas and indices to be used in the adjustments of tolls, fees, rentals,
royalties and charges, where applicable;
(h) requirements of concerned regulatory bodies, if any;
(i) monetary rules and regulation governing foreign exchange remittances;
(j) revenue sharing arrangements;
(k) expected commissioning date.

(7) Minimum design and performance standards or specifications, including applicable

environmental standards shall be clearly defined and shall refer more to the desired quantity and
quality of the outputs of the facility and shall state that non-conformity with any of these minimum
requirements shall render the bids as non-responsive. Likewise, the following economic and
financial parameters, among others, shall be prescribed:
(a) discount rate and foreign exchange rate as prescribed by the
government, where applicable;

(b) maximum period of project construction;

(c) fixed term or variable term for project operation and collection of tolls,
fees, rentals and charges authorized or approved by the government;
(d) formula and price indices to be used for adjustments in tolls, fees,
rentals and charges, in the case of Build Operate Transfer, Build
Operate Own and other variations thereof authorized or approved by
the government;

(e) other financial features embedded in the Public Private Partnership

project to enhance Value for Money.

54. Negotiations.- (1) Notwithstanding the provisions of Rule 40, negotiations may be permissible
after the financial bids have been opened. In case the procuring agency has valid reasons, which
must be recorded in writing, that the financial offers are not providing best value for money or need
changes, the procuring agency may invite sealed revised financial bids from all qualified bidders or
through open bidding. The procuring agency shall keep complete minutes of the negotiation
process;

(2) Direct negotiations shall be resorted to when there is only one complying bidder left
as defined hereunder:

(a) If, in response to advertisement, only one interested bidder responds for
prequalification, and it meets the pre-qualification criteria;
(b) If after advertisement, more than one interested bidders respond for
pre-qualification, if any but only one of them meets the prequalification
criteria;
(c) After pre-qualification, if any, more than one interested bidders
respond, and only one of them submits a bid, which is found by
procuring agency to be complying;
(d) After pre-qualification, if any, more than one interested bidders
submits the bid, but only one is found by the procuring agency to be
complying.

55. Bid Evaluation. - The best evaluated bid shall be determined on the basis of the following
criteria;

(1) Lowest bid in terms of user fees if the concession period is fixed.
(2) Highest return or profit for the government if the concession period is fixed
and the user fees is the same or lower than other bidder.
(3) Shortest concession period if the user fee is fixed.
(4) Lowest Net Present Value of return to the bidder if user fee, concession period
and subsidy element is same as those of other bidders, if government equity is
not involved.
(5) Lowest amount of subsidy if the other considerations are almost same.
(6) Any other factor deemed relevant to the particular project by the procuring
agency.

56. Award of Contract.- Notwithstanding anything contained in these rules, award of contract
under Public Private Partnership shall be based on the criteria of evaluation prepared by the
procuring agency, and published along with the Request for Proposal. Subsequently, if procuring
agency deems it necessary to change the evaluation criteria after the
Request for Proposal has been issued, it shall issue fresh Request for Proposal to afford equal
opportunity to all the interested bidders;

(2) In so far as applicable, the same rules provided for the evaluation of the technical
and financial aspects of bid proposals in Part II shall be applied in the evaluation of single bid;

(3) The procuring agency concerned shall have the right to cancel bidding process, as
provided in rules.

57. Unsolicited Proposal.- (1) To promote and invigorate innovation the government may
receive unsolicited proposals for Public Private Partnership investment from any source;

(2) The concerned procuring agency shall get the proposal reviewed by their respective
technical committee to determine whether the project for which the proposal has been submitted is
an appropriate project for implementation under Public Private Partnership mode. Such proposal, if
found feasible for Public Private Partnership mode, shall be submitted to the Public Private
Partnership Board, Government of Punjab for approval of concept. The concerned procuring
agency shall carry out further process in collaboration with the Public Private Partnership Board,
Government of Punjab.

(3) A prequalification process is not required in this case.

(4) Procuring agencies shall ensure competitiveness through advertising the proposed
project for open bidding without disclosing the name of the initiator of unsolicited proposal. The
initiator will be given five percent additional weightage on the combined secured score, technical
and financial, in evaluation. If there is no other bid submitted in response to the competitive
bidding, the procuring agency may award the contract to the initiator under these rules.

58. Power to Frame Procedures.- Public Private Partnership Board, Government of Punjab
shall be empowered to devise guidelines and procedures for effective, efficient and transparent
procurement process for Public Private Partnership projects, subject to concurrence by the
Authority.

59. Removal of Difficulties.- To remove the difficulties with respect to any procurement
related issues, not expressly covered in these rules, the procuring agencies or the Public Private
Partnership Board shall refer the matter to the Authority for resolution. The Authority shall co-opt a
representative of Public Private Partnership Board in a committee, formed to resolve such issues.

CHIEF SECRETARY
GOVERNMENT OF THE PUNJAB