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Session on
PPR: Overview and Methods
Md. Shah Alam Bhuiyan
DPMG
Directorate of Posts
Scope of PPR
(a) by any procuring entity using public funds;
(b) by any government, semi-government or any statutory
body established under any law;
(c) by -a company registered under the Companies Act,
1994 (Act No. 18 of 1994);
(d) under a loan, credit or grant agreement or under any
other agreement with a development partner or with a
foreign state or an organization, provided that if there is
anything to the contrary in any such agreement entered
into, the provision of that agreement shall prevail.
Rule 3
Procurement Process: Overview
Steps in Procurement Process
Steps in Procurement Process
Procurement Methods
National Tendering
 OTM (Open Tendering Method)
 LTM ( Restricted Tendering Method)
 DPM (Direct Procurement Method)
 RFQM (Request for Quotation Method)
 TSTM (Two-Stage Tendering Method)
 OSTEM (One Stage Two Envelop Method)
 Frame Work Contract
 Direct Cash Purchase
No tender security for DPM, RFQ and LTM but Performance security
R 25(4)
Procurement Methods
PPR-International Tendering
 OTM (Open Tendering Method) Rule 61, 62
 LTM ( Restricted Tendering Method) Rule-63,64
 DPM (Direct Procurement Method) Rule-74-76
 RFQ (Request for Quotation Method) Rule 69-73
 TSTM (Two-Stage Tendering Method) Rule 65
Procurement Methods For Services
PPR - National and International Tendering
RFP – Request for Proposal Method
Procurement Sub Methods For Services
 Quality and Cost Based Selection ( QCBS)
 Fixed Budget Selection (FBS )
 Least Cost Selection (LCS)
 Single Source Selection (SSS)
 Individual Consultant Selection (ICS)
Rule : 103(4a), 103(3b), 104-112
But 1 and 2 are preferred method Rule 103(4)
Specific Method selection for G and W
 Open Tendering Method
 Conditional preferred method
 Threshold value – not fixed
 Rule 61, 62
Specific Method selection for G and W
Limited/Restricted Tendering Method
PPR- Conditional for any value
1. G&W of their specialized nature
1. Available only from a limited number
Ex : Aircraft, locomotives, Specialized medical
equipment, telecommunication equipments, silos,
ports, harbours
3. An urgent need for Procurement
-Competitive Tendering impractical
Neither foreseeable Nor because of delay
4. Policy of standardize
 computers
 laboratory equipment
 research equipment
Specific Method selection for G and W
Limited/Restricted Tendering Method
PPR- Threshold value
 From enlisted Suppliers or
Contractors
Max. Tk.25 lakh for Goods and related
services and “Stand alone service”
 Max. Tk. 3 Crore for Works and
Specific Method selection for G and W
Request for Quotation Method
 PPR- Conditions
 -Readily available, standard, low valued
 Threshold value :
 Goods-3 lakh each time but not more than 15 lakh
per year – Revenue
 Works-6 lakh each time but not more than 25 lakh
per year – Revenue budget and
Goods: 5 lakh each time but not more than 30 lakh
Specific Method selection for G and W
 DPM (Direct Procurement Method)
 PPR- any value
-Patent goods
-Precondition due to complex nature plant parts
-Single manufacturer and have no sub dealer
-Divisible goods ( fruits, vegetables etc) at
market price
-Exceptional opportunity but recent manufactured
, unused and warranted.
- Collection of agri products at Govt fixed price
Specific Method selection for G and W
-Government owned industry
-Local small industry produced goods following Govt
approved specification
-Spare parts which are not interchangeable due to
supplier change
Threshold value
 Urgency due to natural calamity as per Delegation of
financial power 50 Lakh each time but 5 crore/year
Most urgent goods and services ( catering service,
ambulance service, transportation , event
management, repair, maintenance, plumbing, carpenter
Specific Method selection for G and W
Threshold value (Revenue)
Tk 5-20 laks(Min), 2-10 lakh (Attached Dept), 1-5 laks (Divisional
level) 50000- 2 lakh (District)each time with the HOPE approval, no
year celling
 Threshold value (Project)
 Tk 5-20 laks(Min), 2-10 lakh (Attached Dept), 1-5 laks (PD, A
Class project) 50000- 2 lakh (PD B class project) each time with the
HOPE approval, no year celling. Rule 76
Specific Method selection for G and W
 Variation Order (for works): 15% of Original contract value
Rule: 78 (2)
 Repeat Order (for goods): 15% of Original contract value
(Rule: 77)
 In exceptional case
15% to 50 % of original contract value but to be approved by
Approving authority senior to original contract approving authority.
Rule 74 (4)
Specific Method selection for G and W
Two Stage Tendering Method
- Complex contract (Turnkey)
-Ex: Process plant, major computer and communication system
-Reasons a. Not possible to prepare complete specification in advance
b. Alternative approaches may be available to meet PE’s need but at
present unknown
Rule : 65
Specific Method selection for G and W
One Stage Two Envelope
-Large contract
-Ex: Process plant, major computer and
communication system
-PE is capable to prepare complete
specification in advance
Direct Cash Purchase
 Each time Tk.25000, Year limit 10 lakh for
Both Revenue and Development budget
 Purchase by Officer or committee
 Payment by cash or cheaque
 No purchase order or contract agreement
Framework Contract
 For goods and related services
 Not for works and services
 Period max 3 years
 Selection method : OTM or LTM
 Price never be more than market price
Use: To avoid repetitive tender, to get
competitive price and to ensure scale of
economy
Rule 89
Framework Contract where to apply
PE use Framework Contracts following Rule
89 for repetitive supplies
PE can decide Tenders on lot-by-lot or item-
by-item basis if advantageous.
Rule 15 (3)
Forms of Framework contract
 Option 1
 From single supplier, repetitive supply of
fixed quantity for fixed period and also
for additional delivery
 Example:
 Stationery and Copying paper for its
estimated requirements over a 12
month period
Forms of Framework contract
 Option 2
 From single supplier, repetitive supply of
approximate quantity (not fixed) for fixed period
 Having option for extension or not
 Example
Several Government agencies form a group to buy
an indefinite quantity of office appliances over a 12-
month period, using one lead agency to manage
procurement and giving all members of the group
the right to place orders under the Framework
Contract.
Forms of Framework contract
 Option 3
 From several supplier (not single supplier) , repetitive supply of
approximate quantity on lot by lot basis (not fixed) for fixed period
 Having option for extension or not
Forms of Framework contract
 Option 4
 From single or several supplier , repetitive supply
of approximate quantity of one or many items for
shorter period
 Having no option for extension
Forms of Framework contract
 Option 5: Transportation
Framework Contracts may be used to
procure transportation Services by
inviting Contractors to tender on item-
by-item or lot-by-lot basis within a
defined period of time not exceeding two
(2) years.
QCBS method
Takes into account-
(i) the quality of the Proposal
(ii) the cost of the
Services
Evaluation : The highest
combined scorer
FBS method
Appropriate only when-
(i) the assignment is relatively simple
& can be precisely defined
(ii) the budget is fixed
 Evaluation : Highest Ranked Technical
Proposal within Budget for Negotiation
LCS method
In cases where service is-
(i) standard or routine nature. e.g.-
audits, architectural & engineering
design of non-complex works where
established practice & standards
(ii) cost within the threshold
Threshold: maxm Tk. 50 lakh
Evaluation :
Technically qualified lowest evaluated proposal
invited for negotiation
LCS method
SSS method
Applicable:
 where rapid selection is essential
 where only one firm or individual
consultant has experience of exceptional
worth
 for low value small assignments within
threshold (Individual: 10 Lakh Farm: 20
Lakh
 Govt Owned or specialized Organization
like BUET, BPATC, BIM, BIAM, ESCB, IIFC,
BIDS, etc
SSS method
In case of Downstream Work
Continuation and engagement of initially
selected Consultant, provided that-
-the Consultant performed the initial assignment
satisfactorily
- the need for such downstream assignment was
anticipated in the initial RFP
SSS method
 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)
ICS method
 Qualification and experience of Individual
Consultants are paramount
 No team of staff required
 No additional professional support
required
ICS method
 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
Completion of the session

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PPR Overview and Methods 1.ppt

  • 1. Session on PPR: Overview and Methods Md. Shah Alam Bhuiyan DPMG Directorate of Posts
  • 2. Scope of PPR (a) by any procuring entity using public funds; (b) by any government, semi-government or any statutory body established under any law; (c) by -a company registered under the Companies Act, 1994 (Act No. 18 of 1994); (d) under a loan, credit or grant agreement or under any other agreement with a development partner or with a foreign state or an organization, provided that if there is anything to the contrary in any such agreement entered into, the provision of that agreement shall prevail. Rule 3
  • 6. Procurement Methods National Tendering  OTM (Open Tendering Method)  LTM ( Restricted Tendering Method)  DPM (Direct Procurement Method)  RFQM (Request for Quotation Method)  TSTM (Two-Stage Tendering Method)  OSTEM (One Stage Two Envelop Method)  Frame Work Contract  Direct Cash Purchase No tender security for DPM, RFQ and LTM but Performance security R 25(4)
  • 7. Procurement Methods PPR-International Tendering  OTM (Open Tendering Method) Rule 61, 62  LTM ( Restricted Tendering Method) Rule-63,64  DPM (Direct Procurement Method) Rule-74-76  RFQ (Request for Quotation Method) Rule 69-73  TSTM (Two-Stage Tendering Method) Rule 65
  • 8. Procurement Methods For Services PPR - National and International Tendering RFP – Request for Proposal Method
  • 9. Procurement Sub Methods For Services  Quality and Cost Based Selection ( QCBS)  Fixed Budget Selection (FBS )  Least Cost Selection (LCS)  Single Source Selection (SSS)  Individual Consultant Selection (ICS) Rule : 103(4a), 103(3b), 104-112 But 1 and 2 are preferred method Rule 103(4)
  • 10. Specific Method selection for G and W  Open Tendering Method  Conditional preferred method  Threshold value – not fixed  Rule 61, 62
  • 11. Specific Method selection for G and W Limited/Restricted Tendering Method PPR- Conditional for any value 1. G&W of their specialized nature 1. Available only from a limited number Ex : Aircraft, locomotives, Specialized medical equipment, telecommunication equipments, silos, ports, harbours 3. An urgent need for Procurement -Competitive Tendering impractical Neither foreseeable Nor because of delay 4. Policy of standardize  computers  laboratory equipment  research equipment
  • 12. Specific Method selection for G and W Limited/Restricted Tendering Method PPR- Threshold value  From enlisted Suppliers or Contractors Max. Tk.25 lakh for Goods and related services and “Stand alone service”  Max. Tk. 3 Crore for Works and
  • 13. Specific Method selection for G and W Request for Quotation Method  PPR- Conditions  -Readily available, standard, low valued  Threshold value :  Goods-3 lakh each time but not more than 15 lakh per year – Revenue  Works-6 lakh each time but not more than 25 lakh per year – Revenue budget and Goods: 5 lakh each time but not more than 30 lakh
  • 14. Specific Method selection for G and W  DPM (Direct Procurement Method)  PPR- any value -Patent goods -Precondition due to complex nature plant parts -Single manufacturer and have no sub dealer -Divisible goods ( fruits, vegetables etc) at market price -Exceptional opportunity but recent manufactured , unused and warranted. - Collection of agri products at Govt fixed price
  • 15. Specific Method selection for G and W -Government owned industry -Local small industry produced goods following Govt approved specification -Spare parts which are not interchangeable due to supplier change Threshold value  Urgency due to natural calamity as per Delegation of financial power 50 Lakh each time but 5 crore/year Most urgent goods and services ( catering service, ambulance service, transportation , event management, repair, maintenance, plumbing, carpenter
  • 16. Specific Method selection for G and W Threshold value (Revenue) Tk 5-20 laks(Min), 2-10 lakh (Attached Dept), 1-5 laks (Divisional level) 50000- 2 lakh (District)each time with the HOPE approval, no year celling  Threshold value (Project)  Tk 5-20 laks(Min), 2-10 lakh (Attached Dept), 1-5 laks (PD, A Class project) 50000- 2 lakh (PD B class project) each time with the HOPE approval, no year celling. Rule 76
  • 17. Specific Method selection for G and W  Variation Order (for works): 15% of Original contract value Rule: 78 (2)  Repeat Order (for goods): 15% of Original contract value (Rule: 77)  In exceptional case 15% to 50 % of original contract value but to be approved by Approving authority senior to original contract approving authority. Rule 74 (4)
  • 18. Specific Method selection for G and W Two Stage Tendering Method - Complex contract (Turnkey) -Ex: Process plant, major computer and communication system -Reasons a. Not possible to prepare complete specification in advance b. Alternative approaches may be available to meet PE’s need but at present unknown Rule : 65
  • 19. Specific Method selection for G and W One Stage Two Envelope -Large contract -Ex: Process plant, major computer and communication system -PE is capable to prepare complete specification in advance
  • 20. Direct Cash Purchase  Each time Tk.25000, Year limit 10 lakh for Both Revenue and Development budget  Purchase by Officer or committee  Payment by cash or cheaque  No purchase order or contract agreement
  • 21. Framework Contract  For goods and related services  Not for works and services  Period max 3 years  Selection method : OTM or LTM  Price never be more than market price Use: To avoid repetitive tender, to get competitive price and to ensure scale of economy Rule 89
  • 22. Framework Contract where to apply PE use Framework Contracts following Rule 89 for repetitive supplies PE can decide Tenders on lot-by-lot or item- by-item basis if advantageous. Rule 15 (3)
  • 23. Forms of Framework contract  Option 1  From single supplier, repetitive supply of fixed quantity for fixed period and also for additional delivery  Example:  Stationery and Copying paper for its estimated requirements over a 12 month period
  • 24. Forms of Framework contract  Option 2  From single supplier, repetitive supply of approximate quantity (not fixed) for fixed period  Having option for extension or not  Example Several Government agencies form a group to buy an indefinite quantity of office appliances over a 12- month period, using one lead agency to manage procurement and giving all members of the group the right to place orders under the Framework Contract.
  • 25. Forms of Framework contract  Option 3  From several supplier (not single supplier) , repetitive supply of approximate quantity on lot by lot basis (not fixed) for fixed period  Having option for extension or not
  • 26. Forms of Framework contract  Option 4  From single or several supplier , repetitive supply of approximate quantity of one or many items for shorter period  Having no option for extension
  • 27. Forms of Framework contract  Option 5: Transportation Framework Contracts may be used to procure transportation Services by inviting Contractors to tender on item- by-item or lot-by-lot basis within a defined period of time not exceeding two (2) years.
  • 28. QCBS method Takes into account- (i) the quality of the Proposal (ii) the cost of the Services Evaluation : The highest combined scorer
  • 29. FBS method Appropriate only when- (i) the assignment is relatively simple & can be precisely defined (ii) the budget is fixed  Evaluation : Highest Ranked Technical Proposal within Budget for Negotiation
  • 30. LCS method In cases where service is- (i) standard or routine nature. e.g.- audits, architectural & engineering design of non-complex works where established practice & standards (ii) cost within the threshold Threshold: maxm Tk. 50 lakh Evaluation : Technically qualified lowest evaluated proposal invited for negotiation LCS method
  • 31. SSS method Applicable:  where rapid selection is essential  where only one firm or individual consultant has experience of exceptional worth  for low value small assignments within threshold (Individual: 10 Lakh Farm: 20 Lakh  Govt Owned or specialized Organization like BUET, BPATC, BIM, BIAM, ESCB, IIFC, BIDS, etc
  • 32. SSS method In case of Downstream Work Continuation and engagement of initially selected Consultant, provided that- -the Consultant performed the initial assignment satisfactorily - the need for such downstream assignment was anticipated in the initial RFP
  • 33. SSS method  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)
  • 34. ICS method  Qualification and experience of Individual Consultants are paramount  No team of staff required  No additional professional support required
  • 35. ICS method  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
  • 36. Completion of the session