02
NED UNIVERSITY
COURSE INSTRUCTOR: PROF. RIZWAN F AROOQUI
EM-504: PROJECT MANAGEMENT FRAMEWORK AND TOOLS
ASSIGNMENT 2
(DUE DATE: SUNDAY, FEB10, 2019)
1. Identify and elaborate 5 Methods for Selection of Consultants as per SPPRA.
The following are the five methods a procuring agency may adopt for the selection of
consultants
1) least cost selection method
a. This method shall be adopted for assignments of standard or routine nature
where well-established practices and standards exist;
b. Financial proposals of only technically qualified firms shall be opened. The firm
with the lowest quoted cost or bid shall be selected.
c. Procuring agency may adopt any other method as deemed fit with reason to be
recorded in writing by the competent authority.
2) Quality based selection method
a. This method shall be used only in case of highly specialized, innovative
and complex assignments, where quality is the only factor taken into
consideration.
b. In quality based selection method the technical proposal which attains the
highest score according to the criteria mentioned in the bidding documents
shall be selected without any consideration for cost.
c. The selected firm shall be asked to submit its financial proposal and
invited to negotiate the financial proposal and the contract.
3) Quality and Cost based selection method –
This method shall be used only where;
a. The terms of reference are well-defined and quality is of prime
consideration, while cost is a secondary consideration;
b. The firm which attains the highest combined weighted technical and
financial score according to the criteria mentioned in the bidding
documents shall be selected.
4) Direct selection method
This method shall be used only if all or any of the following conditions exists:
a. For tasks which are natural continuation of previous assignment and
where continuity of technical services is required;
b. For assignments worth less than rupees one hundred thousand
c. In cases of emergency,where only one consultant is qualified or has
experience of exceptional worth.
5) Design contest
This method shall be used only for projects where aesthetic component is of prime
consideration. The procuring agency shall invite consultants to submit a financial
proposal and present a plan or design for the project based on a concept or criteria
provided by it. The financial proposal of the top-ranked consultant shall only be opened.
2. Illustrate the Procurement Cycle (from NIT to Award) by identifying the processes and
the usual (minimum/ maximum) time allocated as per SPPRA.
Procurement cycle:
Procurement cycle is procedure which consists of a series of steps that are followed by a
procuring agency to perform any purchase,
The following steps are as followed:
1. Advertisement
Publishing the procurement opportunity which start with time zero which is called the
notice inviting tender (NIT).
a. Procurements over one hundred thousand rupees and up to one million
rupees shall be advertised by timely notifications on the authority’s
website and may in print media in the manner and format prescribed in
these rules.
The advertisement in the newspapers shall appear in at least three widely
circulated leading dailies of english, urdu and sindhi languages
C.
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.
D.
In the case of international competitive bidding, the notice shall also be posted on
an internationally known, dedicated and accessible website/magazines or internationally
english language newspaper
Response time
The time allowed for the preparation and submission of bids (including proposals for
prequalification) shall be determined with due consideration of the particular nature of
the project, its magnitude and complexity of the contract as explained below:
A.
Procuring agency shall ensure that bidding documents are available to the
interested bidders from the first day of publication of notice inviting tender in the
newspapers or hoisting on the website.
B.
Response period is determined/calculated from the date of first publication in
newspaper or hoisting on the authority‘s website as the case may be (keeping in view
the cost of bid) up to last date of issuing documents. Response period/time in case of
national competitive bidding shall not be less than fifteen calendar days, but in case of
international competitive bidding shall not be less than 45 days.
C.
In case of large works or complex items, sufficient period be allowed which is
generally between 60-120 days to enable the interested bidders to
conduct
investigations before submitting their bids, and, in such cases, the procuring agency
could convene pre-bid conferences and arrange site visits also.
Submission of bid
A.
Formal procedure
It is essential to define the procedure for the formal receipt of tenders, closing of
tendering and safe-keeping of tenders for the transparency of the tendering process for
the following reasons:-(a) it ensures that tendering is closed at the precise date and
time of the deadline, that no late tenders are accepted.
(b) ensures that a record is kept of all tenders submitted on time, to help avoid the
opening of any late tenders submitted at the opening.
(c) it ensures that submitted tenders are kept unopened until the time for the public
tender opening, to promote fair competition.
B. Discrepancies
(a) date for opening of bids/proposals and the last date for the submission of bids shall
be the same, as given in the bidding documents and in the notice inviting
tender/expression of interest.
(b) in case, the two dates are different, the date and time, given in the bidding
documents shall apply
Bid opening
Bids shall be opened within one hour of the deadline for submission of bids. All bids
shall be opened publicly in the presence of all the bidders, or their representatives, who
may choose to be present in person at the time and place announced in the invitation to
bid and the bid opening is not delayed on the plea of absence of bidders or their
representatives, as their presence is optional. The public tender opening is an important
step in the tendering process as opening of tenders publicly helps to demonstrate that
the tendering process is transparent and increases bidders‘ confidence in the public
procurement process.
Evaluation of bids
(1) all bids shall be evaluated in accordance with the evaluation criteria and other terms
and conditions set forth in the bidding documents;
(2) for the purpose of comparison of bids quoted in different currencies, price shall be
converted into a single currency specified in the bidding documents. The rate of
exchange shall be the selling rate prevailing seven working days before the date of
opening of the bids specified in the bidding documents, as notified by the state bank of
pakistan;
(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 issuance of
notice for invitation of bids.
Award of contract
The bidder with the lowest evaluated cost, but not necessarily the lowest submitted
price, shall be awarded the procurement contract, within the original or extended period
of bid validity. Within seven days of the award of contract, procuring agency shall publish
on the website of the authority and on its own website, if such a website exists, the
results of the bidding process, identifying the bid through procurement identifying
number, if any, and the following information:
(1) evaluation report;
(2) form of contract and letter of award;
(3) bill of quantities or schedule of requirement.
3. Explain: (1) RFQ; (2) Direct Contracting; and (3) Repeat Orders as Alternate Methods of
Procurement with specific reference to where they can be used.
1. .Request for quotation (RFQ):
Request for quotation is standard business process whose purpose is to invite suppliers,
contractors in a bidding process to bid on specific products and services.A request for quotation
(RFQ) is a document that an organization submits to one or more potential suppliers eliciting
quotations for a product or service. Typically, an RFQ seeks an itemized list of prices for
something that is well-defined and quantifiable, such as hardware. Another type of document,
called a request for proposals (RFP), is customarily used when the requesting organization's
requirements are more complex.
2. Direct contracting
Direct Contracting – This method means procurement from a single source without competition
and shall only be applicable under any of the following conditions:
(i)
Standardization of equipment or spare parts, to be compatible with the existing
equipment, Provided that the competent authority certifies in writing the compatibility
of the equipment or spare part(s) to be procured
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
The required item(s) is of proprietary nature and obtainable only from one source,
Provided that the Head of the Department certifies in writing the proprietary nature of
the item(s) to be procured;
The contractor responsible for a process design requires the purchase of critical
items from a particular supplier as a condition of a performance guarantee.
Where civil works are to be contracted and are a natural extension of an earlier or
ongoing job and it can be ascertained that the engagement of the same contractor
will be more economical and will ensure compatibility of results in terms of quality of
work subject to clause (e) below;
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 competent authority certifies in writing the compatibility of the
materials to be procured;
When the price of goods and works and service related thereto, is fixed by
Government or any other authority, agency or body duly authorized by the
Government, on its behalf;
For purchase of locally manufactured motor vehicle from local manufacturers or their
authorized agents at manufacturer’s price;
In cases of emergency;Provided that the Head of the Department or any other officer
not below BS-20 to whom such powers have been delegated by the Head of the
Department, declares that a situation of emergency has arisen and reasons for
making such a declaration shall be recorded in writing.
3. Repeat Orders
Procurement of additional quantities of the item(s) from the original contractor or supplier,
where, after the items originally envisaged for the project or scheme have been procured
through open competitive bidding, and such additional quantities of the same item(s) of
goods or works are needed to meet the requirements of the project or scheme;
Provided that;
(i) The cost of additional quantities of item(s) shall not exceed 15% of the original
contract amount; and
(ii) The original supplier and contractor are willing to supply goods or carry out additional
work on the same prices as agreed in the original contract.
(iii) In case of goods, it shall be permissible only within the same financial year, and in
case of works, during the currency of the project(s) or scheme(s).
4. Explain “Bid Evaluation Criteria”. Why its important?
Bid evaluation criteria
A benchmark, standard, or yardstick against which accomplishment, conformance,
performance, and suitability of an individual, alternative, activity, product, or plan, as well as of
risk-reward ratio is measured.
The purpose of an evaluation process in sourcing is to identify which bid offers the best value
for money i.e. The most economically advantageous tender or proposal. The criteria that
are specified in the invitation to tender document are the basis for the buying decision.
5. Summarize the Four Procedures of Open Competitive Bidding.
6. What is meant by Mis-Procurement. What actions can be taken on declaration of misprocurement (i) In case the contract has not been awarded; and (ii) In case the contract
has been awarded.
Mis-procurement: means public procurement in contravention of any Public procurement
rules i.e PPRA ,SPPRA or Other.
(i)
In case the contract has not been awarded (SPPRA,2010).
a. Bid shall be eliminated from procurement proceedings, or procurement
proceedings shall be declared null and void, and the whole process shall be
carried out afresh; and
b. Case shall be registered under the sindh enquiries and anticorruption act, 1991
(sindh act no. Iv of 1992) and the rules made thereunder against the official(s) of
the procuring agency held responsible for the mis-procurement.
(ii) In case the contract has been awarded (SPPRA,2010)
a. Case shall be registered under the Sindh Enquiries and anticorruption Act, 1991
(Sindh Act No. IV of 1992) and the Rules made thereunder against the official(s)
of the procuring agency held responsible for the mis-procurement; and
b. Compensation shall be paid to the aggrieved bidder by the officer(s) responsible
for mis-procurement for cost incurred on preparation of bid, including the cost of
the complaint registration fee paid by the complainant.
7. “A procuring agency may cancel the bidding process”. Explain when and under what
circumstances.
The Procuring Agency may cancel the bidding before /prior to the Acceptance of bid
The Circumstance under which bidding process may be cancel are
a. Due to Mis-Procurement.
b. Such an infirmity in the bidding documents has surfaced that the procuring
committee recommends to the competent authority that the bids have to be
invited afresh;
8. What is meant by Request for EOI and RFP? How Request for EOI different from RFP?
An EOI (Expression of Interest) – often done in the early stages of the procurement
process – may be released if the buyer is just looking, or is seeking industry input into
scoping requirements that will then go back out to market later on.
Or
EOI is a type of open tendering that enables any company to come forward. It gives rise
to a tough competition and provides the benefit of allowing new and potential suppliers
to secure their work. However, in construction contracts, it is largely criticized for
attracting suppliers that are not suitable for the contract, which results in a waste of time,
money, and effort.
An RFP (Request for Proposal) is often the next stage where the buyer goes to market
for solutions-oriented approaches to service or product delivery.
Or
On the other hand, RFP, also known as Request for Offer (RFO), is a document that can
easily be modified. It is mostly used when a purchaser is looking for a solution-based
response to fulfill its requirements . It is also used in situations where no clear solutions
or specifications are available, and the purchasing department is looking for a number of
innovations and options.
Following are some of the differences between EOI and RFP
1. Different Levels of Procurement
EOI is often executed at the initial level of procurement. It can be released in cases
where the purchaser is slooking for industry input in order to scope out the requirements
that would eventually go in the market in later stages. As already discussed, the RFP is
normally the next step; wherein, the purchaser seeks solution-based approaches for the
delivery of product or services.
2. Stages of EOI and RFP
EOI usually has multiple stages. It is used to shortlist prospective vendors or suppliers
before seeking comprehensive bids from tenderers that are shortlisted. On the contrary,
the RFP can either have a single stage or it can have multiple stages.
3. When are EOI and RFP used
EOI is used in cases where the information required (from tenderers) is specific, but
there is no surety as to whether a supplier will be able to supply services and goods as
per the requirements. Moreover, in cases of EOI, purchasers do not have sufficient
information to compose a detailed request. On the other hand, an RFP is used in cases
where the requirement is properly defined, but a company is looking for a flexible or
innovative solution. In other words, a purchaser looks for solution-oriented submissions
to fulfill the requirements.
9. What could result in Blacklisting of a consultant?
According to SPPRA
a. Conviction for fraud, corruption, criminal misappropriation, theft, forgery, bribery or any
other criminal offence;
b. Involvement in corrupt and fraudulent practices while obtaining or attempting to obtain
a procurement contract;
c. Final decision by a court or tribunal of competent jurisdiction that the contractor or
supplier is guilty of tax evasion;
d. Willful failure to perform in accordance with the terms of one or more than one
contract;
e. Failure to remedy underperforming contracts, as identified by the procuring agency,
where underperforming is due to the fault of the contractor, supplier or consultant;
10. Identify Key Functions of Procurement Committee (as per SPPRA).
The Key functions of Procurement Committee as per SPPRA are
1. Preparing bidding documents;
2. Carrying out technical as well as financial evaluation of the bids;
3. Preparing evaluation report as provided in Rule 45
(Rule 45 Announcement of evaluation reports - Procuring agencies shall
announce the results of bid evaluation in the form of a report giving
reasons for acceptance or rejection of bids. The report shall be hoisted on
website of the Authority and that of the procuring agency if its website
exists and intimated to all the bidders at least seven (07) days prior to the
award of contract.)
4. Making recommendations for the award of contract to the competent authority;
and
5. Perform any other function ancillary and incidental to the above.