OPERATIONS MANUAL

1 OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT Date of Approval: 26th November 2013 No part of this document may be reproduced, stored in a retrieval system or transmitted, in any form or by any means; electronic, mechanical, photocopying, or otherwise, without express consent of PPADB. OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT DOCUMENT NO: REVISION NO: 01 EFFECTIVE DATE: Page 1 of 166 Revision Number Effective Date Description of Change Type of Change Name of Person Originating Change Signature Major Minor 01st April 2014 OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT DOCUMENT NO: REVISION NO: 01 EFFECTIVE DATE: Page 2 of 166 Contents: Chapter 1.

2 Definitions .. 12 Chapter 2. The Scope of Public Procurement Procedures .. 25 The development of modern Public Procurement .. 25 Procurement Philosophy .. 25 Procurement Reform .. 27 Strategic Implementation .. 27 The OPERATIONS MANUAL .. 28 Scope of Application .. 29 The Practise of Procurement .. 29 Mis-procurement .. 29 Chapter 3. The Procuring Entity and its Procurement Unit .. 30 The Procuring Entity .. 30 The Head of a Procuring Entity .. 30 The Management of a Procuring Entity .. 30 Procurement Activity Monitoring and Evaluation .. 31 The Originating Department .. 31 The Procurement Unit .. 31 Responsibilities of the Procurement Unit .. 32 The Management of the Procurement Unit .. 35 Determining the Best Buy or Best Price Disposals.

3 36 Chapter 4. The PPADB .. 38 The PPAD Act and Regulations .. 38 Compliance Status of MTCs/DATCs .. 38 Business Profile Analysis Review .. 38 Capacity Building for Procurement Units .. 38 OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT DOCUMENT NO: REVISION NO: 01 EFFECTIVE DATE: Page 3 of 166 Coordination of Procurement Activities by the PPADB .. 38 Thresholds for Procurement .. 39 Contractor Assessment and Registration .. 39 Review of Bid Packages .. 40 Compliance with the law by Procuring and Disposal Entities .. 40 Potential Modifications to a Contract .. 40 Requests for a Waivers or Extension to a Contract.

4 41 Duties of the Secretary to the Board, or its Committees .. 41 Chapter 5. Selection of simplified bidding packages .. 43 Introduction .. 43 Description of activities simple or complex procurement .. 43 How to access procurement or disposal package (forms & documents) .. 44 How to select a bidding package .. 44 Works packages .. 45 Supplies packages available .. 46 Services packages .. 46 Description of Forms used in the Tender Documentation (SBP forms) .. 47 Chapter 6. Procurement Committees and their Responsibilities .. 51 Procuring Entities and Procurement Committees .. 51 Ministerial Tender Committee {MTC} / District Administration Committee {DATC} .. 51 Duties of a Tender Adjudication Committees (MTC/DATC) .. 52 Decisions of the Board and its Committees.

5 53 The Adjudication Checklist .. 54 Checklist for Submission of Requests under the Direct and Restricted Bidding Method .. 58 Responsibilities of the MTC/DATC to the Board .. 61 Other Tender Committees .. 61 Procurement Pre-Tender Committee .. 61 The Bid Opening Committees .. 61 Tender Evaluation Committee Pre-Tender Meeting .. 62 Composition of Tender Evaluation Committees .. 62 OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT DOCUMENT NO: REVISION NO: 01 EFFECTIVE DATE: Page 4 of 166 Proceedings of Tender Evaluation Committees .. 63 Negotiation .. 64 Negotiations under Open, Restricted and Quotation biddings.

6 64 Negotiations for Direct Procurement Method .. 65 Post Tender Negotiation Committee (PTN) .. 65 Award of Contract .. 67 Chapter 7. Procurement and asset disposal planning .. 68 Introduction .. 68 Responsibility of Procuring Entities .. 68 Approving Authorities and Financial Ceilings .. 68 Role of PPADB and its Committees .. 68 Procurement and asset disposal planning .. 68 The Procurement and asset disposal planning Process .. 69 Procurement and asset disposal Planning Cycle .. 70 Procurement and asset disposal plan implementation and monitoring .. 70 Chapter 8. The Selection of Procurement Methods .. 71 Introduction .. 71 Types of Procurement Activities .. 71 Tendering Procedures .. 71 Prequalification .. 72 Emergency Procurement.

7 72 Open International Bidding .. 74 Procedure for Open International Bidding .. 74 Open Domestic Bidding .. 75 Procedures for Open Domestic Bidding .. 76 Restricted International Bidding .. 76 Restricted Domestic Bidding .. 77 Quotation Proposals Procurement .. 77 Direct Procurement (Single Source) .. 79 Procedures for Direct Procurement (Single Source) .. 80 OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT DOCUMENT NO: REVISION NO: 01 EFFECTIVE DATE: Page 5 of 166 Thresholds for procurement methods .. 80 Chapter 9. Procurement of Services, Supplies and Works .. 82 Introduction .. 82 Procurement of Services.

8 82 Procurement of Supplies .. 82 Procurement of Works .. 82 Procurement methods .. 83 Competitive Bidding .. 83 Statement of Requirements .. 83 Open Bidding .. 84 Restricted Competitive Bidding .. 85 Direct Procurement or Single Sourcing .. 85 Emergency Procurement .. 86 Two Stage Procurement process .. 86 Expression of Interest .. 86 Pre-Qualification .. 87 Short Listing .. 87 Cost Estimates: Budgeting .. 87 Company Data Bank .. 87 Bid Submission .. 88 Selection methods .. 88 Least Cost Based Selection .. 89 Fixed Budget Selection .. 89 Quality Based Selection .. 90 Award of Contract and 90 Performance 90 Conflict of Interest .. 90 Chapter 10. Disposal guidelines .. 92 Authority of the guidelines.

9 92 Definitions and Acronyms .. 92 OPERATIONS MANUAL STANDARD OPERATING POLICIES AND PROCEDURES FOR PUBLIC PROCUREMENT DOCUMENT NO: REVISION NO: 01 EFFECTIVE DATE: Page 6 of 166 Overview and Scope .. 92 Roles and Responsibilities .. 93 Ministerial Tender Committees (MTCs) and District Tender Committees (DATCs) .. 93 Disposing Entities through their Procurement Units are to: .. 94 Asset Recognition .. 94 Asset Disposal Guiding Principles .. 96 Asset Disposal 97 Disposal Process Overview .. 97 Disposal 97 Disposal Planning .. 97 Stage 2: Weigh the Benefits of disposal versus retention .. 99 Stage 3: Value maximisation .. 99 Valuations (Market Value of Assets).

10 100 Stage 4: Disposal method selection .. 100 Stage 5: Annual disposal planning .. 104 Choice of Procedure and Approvals .. 105 Initiation of Disposal Requirements and Approval for Disposal .. 105 Bidding: Measures to solicit offers from bidders.. 106 Evaluation and Negotiations .. 107 Award of 108 Accounting and Reporting Requirements .. 108 Record Keeping and Management .. 108 Report on Damaged, Obsolete, Excess and Surplus Materials .. 110 Chapter 11. The Management of Tender Documents and Tender Processes .. 115 Applicable Law .. 115 Management of Contract Information .. 115 Separation of Duties .. 115 Preparation of the Bidding Document .. 116 Barred from entering 116 Specifications and Terms of Reference (TOR).