Sindh Public Procurement Act 2009 & Rules 2010

2. Sindh Public Procurement Act 2009 & Rules 2010 Sindh Public Procurement Regulatory Authority (SPPRA) Transparency International Pakistan USAID

3. Scope & Applicability • All Government Agencies for procurement of Goods, Works, & Services (Rule 3) • Applicable to Donor Funded procurements unless explicitly barred (Rule 5) • SPP Rules 2010 shall have over riding effect over all rules, regulations, manuals, instructions and orders issued by government pertaining to procurement (Rule 90)

5. Procurement Planning • PAs to prepare Annual Procurement Plan (APP) (Rule 11) • Determine procurement requirements within available resources • Determine applicable procurement methods • Carry out periodic Review of the Plan and Update the same if necessary • APP in advance on Authority’s and PA’s website (Rule 12)

7. Procurement Committee • Constitution of PCs (Rule 7) • Comprising odd number of persons • At  least 1/3rd members from other agencies • Headed by BS-18/highest grade officer • Approved by Head of Department • Functions of PCs (Rule 8) • Prepare bidding documents • Carry out bid evaluation • Prepare Bid Evaluation Reports (BER) (Rule 45); • Recommend Contract Award to Competent Authority • Perform any other function

8. Procurement Process • Open Competitive Bidding (Rule 15) • National Competitive Bidding (NCB) • Only local bidders are desired • International Bidders are not barred • Procurement is below US $10M • May be opted for above US $10M with HoD’s approval and reasons/justifications in writing • International Competitive Bidding (ICB) • Both local & International bidders are desired • subject to Eligibility (Rule 29) • Procurement is above US $10M • May be opted for below US $10M with HoD’s approval and reasons/justifications in writing

9. Procurement Process • Procurement Methods & Advertisement (Rule 16-17) • ≤ 25,000 - Petty Purchases - No Quotations • >25,000 to ≤ 100,000 - Three Quotations only • >100,000 to ≤ 1,000,000 SPPRA Website • >1,000,000 SPPRA Website + 3 leading dailies • (English Urdu S indhi) • Direct Contracting, Force Account, Repeat Orders • No Advertisement

10. Procurement Process • Response Time (Rule 18) • NCB - ≥ 15 days from 1st Publication Date • ICB - ≥ 45 days from 1st Publication Date • Exceptions to Rules 17 & 18 approved by HoD/BS 20 Officer (Rule 19) • Emergency, National Security, or Intellectual Property • Bidding documents available to bidders from date of publication on NIT (Rule 20)

11. Prequalification • Prequalification (with Well defined Criteria) only in following cases (Rule 27) • large and complex works and services • turnkey, design and build, or management contract • expensive and technically complex equipment and works • Prequalification Process (Rule 28) • Notice for Pre-qualification (Rules 17 and 18) • Pre-qualification documents & evaluation criteria • Issued Separately (Rule 20) or, • Part of the Prequalification Notice • Communication of prequalification or otherwise to all

12. Bid Security & Validity • bidders to furnish a bid security (Rule 37) • 1% to 5% of the bid price, • valid for 28 days beyond bid validity • released to the unsuccessful bidders • on signing of contract or expiry of the validity period • Bid Validity Period (Rule 38) • 90 days (NCB) & 120 days (ICB) • May be extended by PA for 1/3rd but refused by bidders • If not extended will result in cancellation of bidding process • If extended will automatically extend Bid Security Validity • Will not change the price or other conditions of the bid

13. Bid Opening • Bid Opening (Rule 41) • Bids to Open within One hour of Submission Deadline • Bidders to sign attendance sheet • Procurement Committee to sign Financial Proposal • Bid Evaluation (Rule 42) • In accordance with the evaluation criteria • Bid Clarification (Rule 43) • No alteration or modification allowed • No conditions of discriminatory nature (Rule 44) • Bidding is valid EVEN if only ONE (Rule 48)

14. Bid Procedure & Evaluation • Open Competitive Bidding (Rule 46) • Single Stage – One Envelope Procedure • NIT to contain eligibility criteria • One envelop with Financial Proposal • Single stage – Two Envelope Procedure • One Package-Two Envelops • Technical and Financial Proposals in separate Envelop • Bid Security inside Financial Proposal Envelop • Evaluate only Technical Proposal for shortlisting • Open Financial Proposal of only shortlisted bidders • Select LOWEST or BEST EVALUATED bid • No Negotiations with LOWEST or BEST Evaluated bidder (Rule 52) • All info confidential until BER announced (Rule 53)

15. Bid Evaluation Report (BER) • Bid Evaluation Report (BER) to be hoisted on SPPRA website and communicated to bidders at least 07 days before the award of contract (Rule 45) • Cancellation of Bidding Process at any time prior to acceptance of Bid (Rule 25)

16. Contracting Requirements • Successful Party, before award of contract shall provide performance security (Rule 39) • pay order or demand draft or bank guarantee not more than 10% of contract price • Valid for 90 days beyond the date of completion of contract • Procurements exceeding Rs. 10 million for goods and works, and Rs. 2.5 million for services shall be subject to an integrity pact (Rule 89)

17. Contract Award • AWARD to Lowest or Best Evaluated Bid (Rule 49) • CONTRACT in force upon AGREEMENT signing or as specified in the agreement (Rule 55) • Publish Award of Contract on SPPRA Website within 7 Days along with (Rule 50) • Bid Evaluation Report • Form of Contract and Letter of Award • Bill of Quantities or Schedule of Requirement

19. Complaint Redressal Committee (CRC) • PA to constitute Complaint Redressal Committee (CRC) under Rule 31 • Odd number of persons • Headed by Head of PA or official one rank senior to the head of the procurement committee • Members • Accountant General representative in case of PA • District Accounts Officer/representative in case of the LGs or provincial line departments at district level • independent professional nominated by PA Head

20. Complaint Redressal Mechanism • Aggrieved Bidder (AB) to launch a written complaint with CRC, which • If satisfied, may • Stop PC from acting further • Annul decision of PC • Reverse/Substitute PC decision • Shall not Award a Contract • Shall announce decision within 7 days • Shall Communicate decision to SPPRA and AB in 3 days • PA shall award contract after decision of CRC

21. Complaint Redressal Mechanism • Aggrieved Bidder (AB) if not satisfied with CRC decision may appeal to Chief Secretary through SPPRA with • letter stating his wish to appeal to the Review Panel • copy of the complaint earlier submitted to CRC • non-refundable complain registration fee in favor of SPPRA (Appendix A) • CS shall forward the complaint to Review Panel which, within 5 days, shall convene first meeting

22. Complaint Redressal Mechanism • Review Panel (RP), which within 30 days shall communicate its decision to SPPRA, may • Propose rejection of the complaint • AB will loose its Bid Security • Suggest annulment in whole or in part of a non-compliant act or decision of a procuring agency • Suggest the payment of compensation by the officer(s) responsible for mis-procurement • Recommend termination of procurement proceedings in case the procurement contract has not been signed

23. Complaint Redressal Mechanism • SPPRA shall send recommendations of RP to CS whose decision shall be final and binding on parties • SPPRA shall hoist the complaint and the decision on its website within 3 working days

24. Mis-Procurement (Rule 56) • Any unauthorized breach of these rules shall amount to mis-procurement. (Proposed Amendment)

25. Procuring Consultancy Services • Relevant Rules from 1 to 57 shall apply (Rule 58) • Small Consultancy (Rule 59) • < Rs. 0.5 million for Individuals • Rs. 0.5 to 2.0 million for Consulting Firms • Duration ≤ 6 Months • Medium to Large Consultancy (Rule 60) • ≥ Rs. 0.5 million for Individuals • Duration ≤ 12 Months • ≥ Rs. 2.0 million for Consulting Firms • Duration ≤ 6 Months

26. Consultancy Selection Guidelines • PAs to follow a systematic process (Rule 66) • PAs may opt any method of selection (Rule 72) • Least Cost Selection Method • Quality Based Selection Method • Quality and Cost Based Selection Method • Direct Selection Method • Fixed Budget • Design Contest • Consultant’s Qualifications Selection Method • Selection Process of Individual Consultants

27. Consultancy Selection Committee (CSC) • Consultant Selection Committee for PAs (Rule 67) • headed by BS-19/highest grade officer/Project or programme directors, coordinators or managers of the respective projects or programs • nominee of BS-18from • P&DD+FD • representative of the procuring agency • one technical member from the concerned PA • two co-opt members – no voting rights • Quorum – Head+P&DD+FD (Rule 68)

28. Consultancy Selection Committee (CSC) • Consultant Selection Committee for DGs (Rule 69) • Headed by EDO • Members • EDO F&P/Representative BS 18 • DO (Member + Secretary) • Two professionals from Civil Society • two co-opt members – no voting rights • Quorum – Head+F&P+Oneprivate member

29. Consultancy Selection Process • CSCs responsible for (Rule 73) • Preparation of short listing criteria. • Preparation of Request For Proposal (RFP) • Short listing of consultants • Evaluation of Technical and Financial proposals • Finalization of recommendation • Decisions by CSC through simple majority (Rule 70)

30. THANK YOU