Public Procurement Acts, Regulations, Cycles,

Methods of Procurement and Types of Contract

Shanker.K.Shrestha, Director, PPMO 2070-01-19
Contain Coverage:

Legal Framework and Institutional arrangements (Procurement Act,

Regulations, Procurement Plan and Procurement Master Plan)
Procurement Cycles
Methods of Procurement
Types of Contract
Current Issues

2
Related to the General Public

3
 Legal Framework and Institutional
Arrangements

Basic Knowledge about

legal framework for public
procurement

19-01-2070 Basic Knowledge 4

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Procurement Law Modal
Asia Pacific Economic Support Organization (APEC)
Procurement agreement of world trade
organization(GPA)
Trade Law of United Nations( UNCITRAL)
World Bank Procurement Guidelines
ADB Procurement Guidelines
North America Free Trade Organization( NAFTA)
Rules of European commission( EC Rules)
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Procurement Principles

Economy= Best Value for money- competition-Finance

Ministry concern
Efficiency= Timely action/ completion-projects concern
Tranparency= well informed to all potential/interested
bidders/applicants
Fairness= on equal footing, no biasness

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PP is powerful tool by which future actions on
procurement can be better forecasted and
managed.

PP= Procurement Activity + Estimated Cost +

Applicable Procurement Procedure (of Gov or
WB/ADB/JICA) + Procurement Method +
Procurement Steps vs action dates
If one of the above 5 components is missed, that is
already not a PP
 Procurement Planning

What is to
buy?
When to How to
buy? buy?

Procurement

How Where to
much to buy?
buy?
At what price
to buy?
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2020
Procurement Cycle
Preparing for Procurement
Identification of Market review Procurement
procurement Define Specifications, document preparation
Prepare cost estimate,
needs (Plan) Packaging
and Distribution
select Procurement approach

Contract Review Manage Contract Supplier Selection

(Progress/ Monitoring/Verification in Tender Evaluation
terms of quantity, quality and
specification, Claims/Liquidity
Contract Award
(Rejection/Letter of Intent
damage/disputes,
(Complain and acceptance)
Acceptance/Rejection/Payments,
/Contract formation
Management of warranty
period/Completions)

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 Procurement Process
Preparation of PQ Doc. and Preparation of Bidding Doc.
PQ Evaluation Criteria # and Bid Evaluation Criteria #

Invitation for PQ Invitation to Bid

Issue of PQ Application. Issue of Bidding Doc.

Submission of Bids
Submission of PQ Application

Bid Evaluation #
PQ Evaluation of PQ Application #
Contract Negotiation

Contract Award #
Procurement of Goods, Works & Consulting
Services National and International Competitive
Bidding
Open Competition
Single Stage
With Pre-qualification
Two Stage
Open Competition
Without Pre-qualification

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Competitive Bidding
Single Stage and Two Stage

Single Stage
1. One envelop process (Technical and Financial proposals are
submitted in a single envelop)

1. Two envelop process (Technical and Financial proposals are

submitted in separate envelop)
Two stage process
(Technical proposal is invited first and again Technical and Financial proposals are
invited from the successful bidders form the first stage evaluation) Bid evaluation
period is quite longer then others.
Used in Turnkey contracts or large/complex facilities, etc. where it may be
undesirable/impractical to prepare complete technical specifications in advance.
Methods of Procurement for procuring
of Goods
Methods Value (NRs) Reference
Direct Purchase Up to Rs. 300,000 o Quotation or proposal
Up to Rs. 15,00000.00 o From Standing List or From Market
Unlimited Amount o From manufactures Company
o From single manufactures Company
Limited Amount o only one supplier or construction entrepreneur has the
technical capacity or capability to fulfill the
procurement requirements ( Committee + Cabinet
decision)
o only one supplier has the exclusive right to supply the
goods to be procured and there is no other suitable
alternative
o Additional goods or services of proprietary nature
within the prescribed threshold are to be procured
from original supplier, consultant or services to replace
or add for existence goods, service or machinery items.
o any other additional works, Goods and Consulting
Services which is not included in the present contract (
Committee + Cabinet decision)
o Written Proposal from single Suppliers, Contractors
or Consulting Services and Negotiation as per
requirement.
Sealed Quotation Up to Rs. 1,000,000 o Open Competition Without Pre-qualification
o Single Stage 25
Methods of Procurement for procuring
of Goods
Methods Value (NRs) Reference
National Competitive More than Rs. o Open Competition With pre-
Bidding (NCB) 1,000,000.00 qualification
o Open Competition Without Pre-
qualification
o Single Stage or Two Stage
International Competitive Based on availability of o Open Competition With pre-
Bidding (ICB) local contractors; Special qualification
goods, agreement with o Open Competition Without Pre-
donors, etc. qualification
o Single Stage or Two Stage
Special Circumstances Unlimited Amount o No specified methods
o Possible Competitive Process
Special Decision of Unlimited Amount o Procedures approved by cabinet
Cabinet o Competitive Process as per specified

Non -Governmental Unlimited Amount o 15 days Proposal from standing list or

Organizations (NGO) open market

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Methods of Procurement for procuring
of Works
Methods Value (NRs) Reference
Direct Purchase Up to Rs. 500,000 o Quotation or proposal
Unlimited Amount o From Standing List or From Market
Limited Amount o only one supplier or construction
entrepreneur has the technical capacity or
capability to fulfill the procurement
requirements ( Committee + Cabinet
decision)
o any other additional works, Goods and
Consulting Services which is not included in the
present contract ( Committee + Cabinet
decision)
Sealed Quotation Up to Rs. 2,000,000 o Open Competition Without Pre-qualification
o Single Stage
National More than Rs. o Open Competition With pre-qualification
Competitive 2,000,000.00 o Open Competition Without Pre-qualification
Bidding (NCB) o Single Stage or Two Stage

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Methods of Procurement for procuring
of Works
Methods Value (NRs) Reference
International Based on availability of o Open Competition With pre-qualification
Competitive Bidding local contractors; o Open Competition Without Pre-
(ICB) agreement with donors, qualification
etc. o Single Stage or Two Stage

Through Users Up to Rs. 6,000,000 o Direct proposal from user's groups or

committees or beneficiary Including all cost advantages groups
communities o written notice to submit proposal

Special Circumstances Unlimited Amount o No specified methods

o Possible Competitive Process

Special Decision of Unlimited Amount o Procedures approved by cabinet

Cabinet o Competitive Process
Through force account Not more than Rs. o By negotiation for particular contract
(Amnat) 100000.00 o based on wages
o Prior Approval of one level higher
authority
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Types of Contract
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Ensure Procedures Before Taking Decisions
s] x'g' k5{ ?
Ensure that the whole process is adequately documented and
recorded to demonstrate the decision-making processes to
others.
Communicate all documents to the whole team responsible to
the procurement.

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