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Request For Quotation Method (RFQM) (With Exercise) & Direct Procurement Method (DPM) For

Request For Quotation Method (RFQM) (With Exercise) & Direct Procurement Method (DPM) For Procurement of Goods and Works. Request For Quotation Method (RFQM). Main Features : For procurement of Off-the-shelf goods & low value works, No wider advertisement,

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Request For Quotation Method (RFQM) (With Exercise) & Direct Procurement Method (DPM) For

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  1. Request For Quotation Method (RFQM) (With Exercise) & Direct Procurement Method (DPM) For Procurement of Goods and Works

  2. Request For Quotation Method (RFQM) • Main Features : • For procurement of Off-the-shelf goods & low value works, • No wider advertisement, • Only requested bidders can take part in the tendering process, • Simple and fast procurement method, • Limited applicability and yearly threshold

  3. Request For Quotation Method (RFQM) • Major Steps : • Ensure Approval of the method in Procurement Plan • Prepare Specification of Object of Procurement • Prepare an Official Cost Estimate and get Approval • Develop Quotation Document • (contd.)

  4. Request For Quotation Method (RFQM) • Major Steps : • Sending Request Letter to the prospective bidders • Receiving of priced Quotations • Opening and Evaluation of Received Quotations • Approve Contract Award & Issuance of Work/Purchase Order • Contract Management and Payment.

  5. Request For Quotation Method (RFQM) • Major Steps : • Defect Liability/Warranty Period • Return of Security and End of Procurement • Record keeping

  6. Request For Quotation Method (RFQM) • Preparation of Detailed Specifications : A detailed Technical Specification shall be made highlighting the main objectives of the procurement and stating the following: (a) name or description of the Goods, Works to be procured; (b) quality of Goods, Works or Services; (c) required performance Standards and life span; (d) safety Standards and limits ; (e) symbols, terminology to be used in packaging, marking and labeling of the Goods to be procured; (f) processes and methods to be used in the production of the Goods to be procured, where applicable; and (g) test procedure, if any, for conformity assessment of Goods .

  7. Request For Quotation Method (RFQM) • Preparation of Detailed Specifications • No requirements can be expressed using brand names • Specifications shall be such that wider competition can be ensured • Brand name can be used along with ‘ or equivalent’

  8. Request For Quotation Method (RFQM) • Preparation & Approval of Official Cost Estimate • An official estimate shall be prepared considering item wise requirements together with technical requirements based on the market price or any documented Schedule of Rates. • To make it practical, reasonable and up-to-date, the Cost Estimate – • must include all type of taxes applied • must consider a standard rate of supplier’s profit margin • must include transportation or any other expenses

  9. Request For Quotation Method (RFQM) • Preparation & Approval of Official Cost Estimate • The estimate shall be approved by the competent authority (as per Delegation of Financial Power). • The estimated amount of the proposed procurement shall be equal or less than the approved budget or amount approved in the Procurement Plan. • The estimate shall be kept confidential for opening by the TEC.

  10. Request For Quotation Method (RFQM) • Preparation of the Quotation Document • Quotation Document shall be prepared following the Standard Tender Document (PG1/PW1) of CPTU based on the approved estimate. • No need of Tender Security and Performance Security. • Quotation validity period shall be mentioned during document preparation.

  11. Request For Quotation Method (RFQM) Sending Request Letter • Request Letter shall be issued to prospective bidders in accordance with the prescribed format in PG1/PW1. • Quotation Document shall be sent along with the request letter.\ • Request for Quotation shall be sent to such number of bidders so that 3 (three ) responsive quotations must be submitted. • No price can be taken for Quotation Document. • RFQ shall be advertised on Notice Board/website in accordance with the provisions of Act and Rules.

  12. Request For Quotation Method (RFQM) Receive of Quotations • Maximum time interval between issuing RFQ and Quotation Submission deadline shall be 10 (ten) days. • Quotations may be received through e-mail or fax. • Submitted Quotations shall be in sealed condition. • No Quotation shall be received after the deadline. • If sufficient number of Quotations are not received then the PE may extend the time.

  13. Request For Quotation Method (RFQM) Evaluation of Quotations : • Received Quotations shall be sent to the Chairman of the TEC by the PE unopened immediately after the deadline. • Received Quotations shall be opened by the TEC and in accordance with the Act and Rules. • Received Quotations shall be evaluated by the TEC and in accordance with the Rules 98 of the PPR 2008.

  14. Request For Quotation Method (RFQM) Approval of Quotations and Issuance of Work/Purchase Order • The AA, upon getting the ER, may • approve the TEC recommendation, • give instruction for fresh procurement procedure under DPM/any other method if at least 3 responsive quotations are not available. • Approval of Quotation shall be forwarded with the issuance of Work/Purchase Order within the Quotation Validity Period. • Work/Purchase Order shall be issued in accordance with the specific format.

  15. Request For Quotation Method (RFQM) Contract Management • Contract shall be signed only in case of works procurement under RFQM. • For Goods procurement, only Purchase Order will be served. • Defect Liability Period shall be between 3 to 6 months. • Retention Money shall be kept from each payment in accordance with Rules.

  16. Direct Procurement Method (DPM) • Main Features : • Procurement directly from one supplier/contractor, • No advertisement at all, • Shall not be used to avoid competition or to favor someone, • Very simple and fast procurement method, • Very limited applicability The Head of a Procuring Entity shall strictly control the use of the DPM as it does not provide the benefits of competition, lacks transparency and could encourage unacceptable and fraudulent practices .

  17. Direct Procurement Method (DPM) • Forms of DPM : • (a) Direct Contracting; or • (b) Additional deliveries and Repeat Orders; or • (c) Variation Orders; or • (d) Extra Work Order; or • (e) Direct cash purchase; or • (f) Force account

  18. Direct Procurement Method (DPM) • Direct Contracting: • The Procuring Entity may invite only one Supplier or Contractor to submit an offer under certain conditions as mentioned in the PPR 2008. • The PE may conduct negotiation regarding the offer with the Supplier/ Contractor. • The PE may sign a contract or issue purchase order based on the Supplier/ Contractor’s offer. • No Security money is required in this method.

  19. Direct Procurement Method (DPM) • Additional Delivery /Repeat Orders: • Additional deliveries of Goods and related Services, from the original supplier, and Repeat Orders of a similar nature from the original Supplier or Contractor shall be subject to the following conditions : • Within 15% of main Contract; • Shall not be permissible for the purpose of evading the necessity of the requirements for the alternative methods of Procurement and the requirements of the Act and Rules; • Original contract was signed through a competitive process.

  20. Direct Procurement Method (DPM) • Variation or Extra Work Orders : • The Procuring Entity may issue a Variation Order for Procurement of Works, Physical Services from the original Contractor to cover any increase or decrease in quantities, including the introduction of new work items that are either due to change of plans, design or alignment to suit actual field conditions, within the general scope and physical boundaries of the contract . • Up to 15% of the original contract, variations may be allowed.

  21. Direct Procurement Method (DPM) • Direct Cash Purchase: • PE may undertake direct cash purchase of low value Goods and urgent and essential Services such as maintenance, repairs, transportation and others up to the amount of Taka 25,000 (per purchase) but not exceeding Taka 5.0 Lac in a year. • PE may undertake this kind of direct purchase by an officer or a purchase committee, comprising maximum three members. • Payments may be made by cash or cheque and a purchase order or contract shall not be required.

  22. Direct Procurement Method (DPM) • Force Account : • Indicates the part of the expense account of a public body resulting from the employment of a labor force usually. • Force Account may be used for hiring of direct labor for departmental needs up to maximum Taka 2.00 Lac per case in a year.

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