http://ppra.punjab.gov.

pk

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Fax: 042-37402654

GOVERNMENT OF THE PUNJAB

SERVICES AND GENERAL ADMINISTRATION
DEPARTMENT
Dated Lahore, the 13th January, 2014

NOTIFICATION
No.ADMN(PPRA)10-2/2013. In exercise of the powers conferred under
section 26 of the Punjab Procurement Regulatory Authority Act 2009
(VIII of 2009), Governor of the Punjab is pleased to make the
following rules:
1.

Short title and commencement. (1) These

rules

may

be

cited as the Punjab Procurement Rules 2014.

(2)

They shall come into force at once.

CHAPTER-I
GENERAL PROVISIONS

2.

Definitions.(1) In these rules:

(a)

Act means the Punjab Procurement Regulatory Authority

Act 2009 (VIII of 2009);

(b)

`advertisement means an advertisement published in the

manner prescribed under rule 12;

(c)

`applicant means a person or firm who seek to be

enlisted or to be prequalified or to be shortlisted in
response to the advertisement given by the procuring
agency;

(d)

associate means any agency or person with whom the

consultant associates in order to provide any part of the
services;

(e)

Authority means the Punjab Procurement Regulatory

Authority;

(f)

bid means a tender or an offer, in response to an

invitation, by a person, consultant, firm, company or an
organization expressing his or its willingness to undertake
a specified task at a price;

(g)

biding

document

documents
characteristics,

means

prescribing
conditions

document

or

the

quantity,

and

procedures

set

of

quality,
of

the

transactions prior to the actual procurement and on the

basis of which bidders prepare their bids;
(h)

bid security means the bank guarantee or other form of

security submitted by a bidder together with a bid to
secure the obligations of the bidder participating in a
bidding proceedings;

(i)

competitive bidding means a procedure leading to the

award of a contract whereby all the interested persons,
firms,

companies

or

organizations

may

bid

for

the

contract;
(j)

competent authority means the head of the procuring

agency or any other officer authorized to act as competent
authority;

(k)

completion date means the date of completion of the

procurement certified by the procuring agency;

(l)

consultant means a person or firm who or which is

qualified by appropriate education and relevant experience
for provision of consultancy services;

(m)

consultancy services means services requiring adequate

technical expertise and financial capability in undertaking
specific

assignment

or

project

and

may

be

of

an

intellectual nature and differ from the other types of

services directly connected with the procurement of goods
and works in which the physical component of the activity
2

is the

main function and often involves equipment

intensive assignments and may include:

(i)

advisory and review services;

(ii)

pre-investment or feasibility studies;

(iii)

construction supervision;

(iv)

management and related services, and

(v)

other technical services or special studies;

(vi)

design; and

(vii) surveys and investigations;

(n)

contract means the agreement proposed to be entered

into between the procuring agency and the successful
bidder;

(o)

contractor

means

person,

firm,

company

or

an

organization who or which undertakes to supply goods,

services or works and includes a consultant;
(p)* clause (p) omitted vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016

(q)

emergency means natural calamity, disaster, accident,

war and operational emergency which may give rise to
abnormal situation requiring prompt and immediate action
to limit or avoid damage to person, property or the
environment;

(r)

evaluation committee means a committee constituted by

the procuring agency to evaluate tender or proposal to
ascertain whether the bids proposal or tender correspond
to the evaluation criteria formulated by the procuring
agency;

(s)

evaluation report means the report prepared after the

evaluation of tenders, quotations, expression of interest,
or proposal;
3

*(sa)framework contract means a contract whereby the

procurement is made for a certain volume or quantity of a
particular good, a set of goods, services or works over a
specific period against an agreed sum or rate per item or
lump sum.
(t)
**(u)

Government means Government of the Punjab;

large consultancy means a consultancy where the cost of
consultancy exceeds two million rupees for individual
consultant and five million rupees for consulting firms and
the

duration

of

large

consultancy

for

an

individual

consultant shall not exceed twelve months;

** in clause (u) the word one substituted with the word two vide
Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016

(v)

lowest evaluated bid means:

(i)

a bid most closely conforming to evaluation criteria

and

other

conditions

specified

in

the

bidding

document; and
(ii)

having lowest evaluated cost;

(w) performance guarantee means the bank guarantee or

other form of security submitted by the contractor to
secure obligations under the contract in accordance with
the requirement in the bidding document;
(x)

pre-qualification means a procedure for demonstrating

qualification as a pre-condition for being invited to tender;

(y)

proposal means the technical proposal or the financial

proposal submitted by a bidder;

(z)

repeat

orders

means

procurement

of

the

same

commodity from the same source;

(aa) responsive means qualified for consideration on the basis
of declared evaluation criteria and specified in the bid
*Inserted vide Notification No.ADMN(PPRA)10-2/2014 dated 11.03.2014

document or in the request for proposal;

*(ab) short consultancy means consultancy where the cost of
consultancy does not exceed two million rupees for
individual consultant and five million rupees for consulting
firms and duration of the short consultancies for an
individual consultants shall not exceed six months;
* in clause (ab) The words exceeds one substituted with the words
exceed two vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016

(ac) supplier

means

person,

firm,

company

or

an

organization who or which undertakes to supply goods,

services or works;
(ad) urgency means a limited timeline for the accomplishment
of procurement which cannot be met through open and
limited bidding method; and
(ae) value for money means the best returns for each rupee
spent in terms of quality, timeliness, reliability, after sales
service,

up-grade

ability,

price,

source,

and

the

combination of whole-life cost and quality to meet the

procuring agencys requirements.
(2)

The expression used but not defined in these rules shall

have the same meanings as is assigned to it in the Act.

*3.

Scope and applicability. Save as otherwise provided, these

rules shall apply to all public procurements made by all procuring

agencies whether within or outside the Punjab.
* The word public inserted before the word procurements vide Notification
No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

4.

Principles of procurements. A procuring agency, while

making any procurement, shall ensure that the procurement is made

in a fair and transparent manner, the object of procurement brings
value for money to the procuring agency and the procurement process
is efficient and economical.
5

5.

International commitments of the Government. If any

provision of

these rules is in conflict with any obligation or

commitment of the Government arising out of an international

agreement with a state or states, or any international financial
institution, the provisions of such international agreement, to the
extent of conflict, shall prevail.
6.

Language.(1) Subject to sub-rule (2), all communication and

documentation relating to procurements of the Government shall

either be in Urdu or English or both.
(2)

When any procurement is required to be made from any

state outside Pakistan, the language of that state may also be used in
addition to Urdu or English but the original documentation for
purposes of record, even in that case, shall be in Urdu or English and
the translation in such other language may be used for any other
purpose.
(3)

In case of conflict, the original documentation on record

shall prevail.
7.

Integrity pact. Procurement exceeding the limit specified in

the regulations shall be subject to an integrity pact between the

procuring agency and a contractor.

CHAPTER-II
PROCUREMENT PLANNING
8.

Procurement planning. A procuring agency shall, within one

month from the commencement of a financial year, devise annual

planning for all proposed procurements with the object of realistically
determining the requirements of the procuring agency, within its
available resources, delivery time or completion date and benefits that
are likely to accrue to the procuring agency in future.
9.

Limitation on splitting of procurement. Save as otherwise

provided and subject to the regulations, a procuring agency shall

announce in an appropriate manner all proposed procurements for
each financial year and shall proceed accordingly without any splitting
or regrouping of the procurements so planned.
(2)

The procuring agency shall advertise in advance annual

requirements for procurement on the website of the Authority as well

as on its website.
10.

Specifications.(1)

procuring

agency

shall

determine

specifications in a manner to allow the widest possible competition

which shall not favour any single contractor nor put others at a
disadvantage.
(2)

The specifications shall be generic and shall not include

references to brand names, model numbers, catalogue numbers or

similar other classifications but if the procuring agency is satisfied that
the use of, or a reference to, a brand name or a catalogue number is
essential to complete an otherwise incomplete specification, such use
or reference shall be qualified with the words or equivalent.
(3)

The provisions contained in sub-rules (1) and (2) shall not

apply to any procurement made by a procuring agency which is a

public sector commercial concern on the demand of a private sector
client specifying, in writing, a particular brand, model or classification
of equipment, machinery or other objects.

11.

Approval mechanism.

All procuring agencies shall provide

clear authorization and delegation of powers for different categories of

procurement and shall initiate procurements after prior approval of the
competent authority.
CHAPTER-III
ADVERTISEMENT
*12. Method

of

advertisement.

(1)

Save

as

otherwise

provided in these rules, a procuring agency shall advertise

procurement of more than one hundred thousand rupees and up to
the limit of two million rupees on the website of the Authority in the
manner and format specified by regulations but if deemed in public
interest, the procuring agency may also advertise the procurement in
at least one national daily newspaper.
* The expression Subject to rule 59 substituted with the expression Save as
otherwise provided in these rules vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016.

(2)

Subject to rule 13, any procurement exceeding two million

rupees shall be advertised on the website of the Authority, the website

of the procuring agency, if any, and in at least two national daily
newspapers of wide circulation, one in English and one in Urdu.
(4)

A procuring agency shall ensure that the information

posted on the website is complete for 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.
13.

Exceptions. The requirement of advertisement mentioned in

rule 12, may be dispensed with after prior approval of the Authority in
the following cases:
(a)

the proposed procurement pertains to national security

and its publication may jeopardize or compromise the
objectives of national security; and

(b)

the publication of advertisement or notice of the proposed

procurement involves disclosure of information which is
8

proprietary in nature or falls within the definition of

intellectual property which is available from a single
source.
14.

Response time. (1) The procuring agency may decide the

response time for receipt of bids or proposals (including proposals for

prequalification) from the date of publication of an advertisement or
notice keeping in view the complexity of the procurement, availability
and urgency but, in no circumstances, the response time shall be less
than fifteen days for national competitive bidding and thirty days for
international competitive bidding from the date of publication of
advertisement or notice.
(2)

All advertisements or notices shall expressly mention the

response time allowed for the procurement along with the information
for collection of bid documents which shall be issued till a given date,
allowing sufficient time to complete and submit the bid by the closing
date but the time limit shall not apply in case of an emergency
procurement.
(3)

The response time shall be calculated from the date of

publication of the advertisement in a newspaper or on the website,

whichever is later.
*15. Framework contract.(1) A procuring agency may procure
goods, services or works through framework contract in order to
ensure uniformity in the procurement.
(2)

The procuring agency shall adopt any of the methods of

procurement mentioned in these rules for purposes of entering into a

framework contract.
CHAPTER-IV
PREQUALIFICATION, QUALIFICATION AND
DISQUALIFICATION
16.

Prequalification. (1) Subject to sub-rule (2), a procuring

agency may, prior to floating the tenders or invitation to proposals or

*Substituted vide Notification No. ADMN(PPRA)10-2/2014 dated 11.03.2014

offers, engage in prequalification of bidders in case of services, civil

works, turnkey projects and also in case of procurement of expensive
and technically complex equipment to ensure that only technically and
financially capable firms or persons having adequate managerial
capacity are invited to submit bids.
(2)

The procuring agency shall prequalify bidders under sub-rule (1)

in case of procurement of goods of one hundred million rupees and

above and large consultancy, except where a procuring agency, for
reasons to be recorded in writing, dispenses with the requirement of
prequalification of bidders.
(3)

For purposes of the prequalification of bidders, a procuring

agency shall take into consideration the following factors:

(a)

qualifications;

(b)

relevant experience and past performance;

(c)

capabilities with respect to personnel, equipment,

and plant;

(d)

financial position;

(e)

appropriate managerial capability; and

(f)

any other factor that a procuring agency may deem

relevant, not being inconsistent with these rules.

(4)

The procuring agency shall ensure that the prequalification

is based on the capacity of the interested parties to satisfactorily

perform the services or works.
(5)

In case of fast track projects where the time is the

essence or where potential consultants are limited or the assignment

is of a complex nature, the procuring agency may, after recording
reasons and with the approval of Provincial Development Working
Party, invite a request for proposals through public notice under
rule 12.

10

* (6) Notwithstanding anything contained in sub-rules (1) and

(2), Planning and Development Department of the Government may
shortlist the individual consultants, firms or companies involving legal,
financial and technical expertise.
* (7) A procuring agency may, at the time of prequalification
process consider any of the individual consultants, firms or companies
shortlisted under sub-rule (6), after conducting the due evaluation
process (technical or financial), in case where:
(a)

procuring

agency

lacks

capacity

of

prequalification process;
(b)

sufficient time to take up the process of

prequalification is not available; and

(c)

expertise acquired by individual consultant,

firms or companies shortlisted under sub-rule
(6) in line with the requirements of the
procuring agency.

* (8) Planning and Development Department of the Government

shall:
(a)

before shortlisting process, in consultation

with the key line departments, determine the
parameters

and

selection

criteria

for

shortlisting of individual consultants, firms or

companies to be considered as consultant;
(b)

shortlist all such individual consultants, firms

or companies only for one financial year
through

its

notified

committee

strictly

in

accordance with the procedure provided under

these rules;
(c)

shortlist atleast three individual consultants,

firms or companies for each area of expertise;

(d)

upload the list of such shortlisted individual

consultants, firms or companies on the website

*Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014

11

of Punjab Procurement Regulatory Authority

and Planning and Development Department of
the Government for the consumption of public
sector organizations; and
(e)

circulate the list to all the public sector

organizations.

*(9) A procuring agency intending to use the facility of

shortlisted individual consultants, firms or companies, while taking up
the process of procurement, shall invite technical or financial bids from
all such shortlisted individual consultants, firms or companies as per
requirement of the procuring agency.
*(10)

A procuring agency may select a consultant under

this rule and where this rule is silent about any selection process, it
shall adopt the selection process of a consultant provided in other
rules.
17.

Prequalification process. (1) The procuring agency engaging

in prequalification shall announce, in the prequalification documents,

all information required for prequalification including instructions for
preparation
evaluation

and

submission

criteria,

list

of

of

the

prequalification

documentary

evidence

documents,
required

by

contractors to demonstrate their respective qualifications and any

other information that the procuring agency deems necessary for
prequalification.
(2)

The procuring agency shall provide a set of prequalification

documents to any contractor, on request and subject to payment of

such price as the procuring agency may determine to defray the cost
on account of printing and provision of the document.
(3)

The procuring agency shall promptly inform the contractor

who has applied for the prequalification whether or not he has been
prequalified and shall, on request from the applicant who had applied
for prequalification, a list of contractors who have been prequalified.
*Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014

12

(4)

On a request, the procuring agency shall communicate to

the contractor who has not been prequalified the reasons for not
prequalifying the contractor.
(5)

Only the prequalified contractors shall be entitled to

participate in the subsequent procurement proceedings.

18.

Qualification. A procuring agency, at any stage of the

procurement proceedings, having credible reasons for, or prima facie

evidence of, any defect in the capacity or otherwise of a contractor,
whether or not prequalified, may require the contractor to provide
such further

information concerning

the

professional,

technical,

financial, legal or managerial competence as the procuring agency

may decide.
19.

Disqualification. The procuring agency shall disqualify a

contractor on the ground that he had provided false, fabricated or

materially incorrect information.
*20. Declaration of ineligibility. (1) Subject to rule 21, the
procuring agency may, after providing an opportunity of hearing,
declare, through a notification, an applicant for prequalification as
ineligible for participating in any public procurement process for such
period as it may determine on account of his engaging, directly or
through an agent, in corrupt practice.
* The words corrupt or fraudulent practice substituted with the word corrupt
practice vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

(2)

A copy of the notification shall be provided to the affected

person and to the Authority.

*21. Blacklisting.(1) A procuring agency may, for a specified
period, debar a bidder or contractor from participating in any public
procurement process of the procuring agency, if the bidder or
contractor has:
(a) acted in a manner detrimental to the public interest or
good practices;
13

(b) consistently failed to perform his obligation under the

contract;
(c) not performed the contract up to the mark; or
(d) indulged in any corrupt practice.
(2) If a procuring agency debars a bidder or contractor under
sub-rule (1), the procuring agency:
(a) shall forward the decision to the Authority for
publication on the website of the Authority; and
(b) may request the Authority to debar the bidder or
contractor for procurement of all procuring agencies.
(3) The Managing Director may debar a bidder or contractor of
any procuring agency from participating in any public procurement
process of all or some of the procuring agencies for such period as the
Managing Director may determine.
(4) Any person aggrieved by a declaration made under rule 20
or a decision under sub-rule (1) of this rule may, within thirty days
from the date of the publication of the information on the website of
the Authority, file a representation before the Managing Director and
the Managing Director may pass such order on the representation as
he may deem fit.
(5) Any person or procuring agency aggrieved by an order under
sub-rule (3) or (4) may, within thirty days of the order, file a
representation before the Chairperson and the Chairperson may pass
such order on the representation as he may deem appropriate.
(6) The mechanism or process for barring a bidder or contractor
from participating in procurement process of a procuring agency,
procuring agencies and a representation under this rule is specified in
the Schedule appended to these rules.";
* for rule 21 the above shall be substituted vide Notification No.S.O(Cabinet-I)2-9/2015
dated 06.01.2016.

14

CHAPTER-V
METHODS OF PROCUREMENT
*22. Principal method of procurement. Save as otherwise
provided

hereinafter,

the

procuring

agencies

shall

use

open

competitive bidding or publication of request for tender as the

principal method of procurement for the procurement of goods,
services and works.
* in rule 22 after words open competitive bidding, the words or publication of
request for tender inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

23.

Open competitive bidding. Subject to rules 24 to 38, the

procuring agencies shall engage in open competitive bidding if the cost

of procurement is more than the prescribed financial limit.
24.

Submission of bids. (1) A bidder shall submit a bid in a

sealed package or packages in such manner that the contents of the

bid are fully enclosed and cannot be known until duly opened.
(2)

A procuring agency shall specify the manner and method

of submission and receipt of bids in an unambiguous and clear manner

in the bidding documents.
25.

Bidding documents. (1) A procuring agency shall formulate

precise and unambiguous bidding documents that shall be made

available to the bidders immediately after the publication of the
invitation to bid.
(2)

For competitive bidding, whether open or limited, the

bidding documents shall include the following:

(a)

invitation to bid;

(b)

instructions to bidders;

(c)

form of bid;

(d)

form of contract;

(e)

general or special conditions of contract;

(f)

specifications and drawings or performance criteria

(where applicable);

15

(g)

list of goods or bill of quantities (where applicable);

(h)

delivery time or completion schedule;

(i)

qualification criteria (where applicable);

(j)

bid evaluation criteria;

(k)

format of all securities required (where applicable);

(l)

details of standards (if any) that are to be used in

assessing the quality of goods, works or services
specified; and

(m)

any other detail not inconsistent with these rules

that the procuring agency may deem necessary.

(3)

Any information that becomes necessary for bidding or for

bid evaluation, after the invitation to bid or issue of the bidding

documents to the prospective bidders, shall be provided in a timely
manner and on equal opportunity basis.
(4)

Where any change becomes essential in the procurement

process, such change shall be made in a manner similar to that of the

original advertisement.
(5)

A procuring agency shall use standard bidding documents

as and when notified under the regulations.

(6)

Until the standard bidding documents are specified under

the regulations, a procuring agency may use bidding documents

already in use of the procuring agency to the extent they are not
inconsistent with these rules.
(7)

The procuring agency shall, on payment of such fee as the

procuring agency may determine keeping in view the cost of printing

and provision of the documents, provide a set of bidding documents to
the prospective bidders.
26.

Reservations and preference. (1) A procuring agency shall

allow all prospective bidders to participate in procuring procedure

without regard to nationality except in cases in which any procuring
agency decides to limit such participation to national bidders only or
16

prohibit participation of bidders of some nationalities in accordance

with the policy of the Government.
(2)

A procuring agency shall allow for a preference to

domestic or national contractor in accordance with the policies of the

Government and the magnitude of price preference to be accorded
shall be clearly mentioned in the bidding documents under the bid
evaluation criteria.
*27. Bid security. The procuring agency may require the bidders to
furnish a bid security not exceeding five per cent of the estimated
price.
Explanation.- In this rule, the words 'estimated price' mean the price
of procurement estimated by the procuring agency before initiation of
the process of procurement.";
* rule 27 substituted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

28.

Bid validity. (1) A procuring agency, keeping in view the

nature of the procurement, shall subject the bid to a bid validity

period.
(2)

The bids shall be valid for the period of time specified in

the bidding document.

(3)

Subject to sub-rule (5), a procuring agency shall ordinarily

be under an obligation to process and evaluate the bids within the

stipulated bid validity period but, under exceptional circumstances and
for reasons to be recorded in writing, if an extension is considered
necessary, all the bidders shall be requested to extend their respective
bid validity period but such extension shall not be for more than the
original period of bid validity.
(4)

A bidder who:
(a)

agrees to the extension of the bid validity period

shall also extend the validity of the bid bond or
security for the extended period of the bid validity;

17

(b)

agrees

to

extension

the
of

procuring

bid

agencys

validity

period

request
shall

not

for
be

permitted to change the substance of the bid; and

(c)

does not agree to an extension of the bid validity

period shall be allowed to withdraw the bid without
forfeiture of the bid bond or security.

(5)

The competent authority of the procuring agency shall not

extend bid validity period without obtaining prior approval of the

authority next above the competent authority and if the chief
executive of an autonomous procuring agency is the competent
authority then next higher authority in such a case shall be the board,
syndicate or any other apex body of the procuring agency.
29.

Extension of time for submission of bids. If a procuring

agency considers that it is necessary in public interest to extend the

last date for the submission of the bids, it may, after recording
reasons, do so in the manner similar to the original advertisement.
CHAPTER-VI
OPENING, EVALUATION AND REJECTION OF BIDS
30.

Opening of bids. (1) The date for opening of bids and the last

date for the submission of bids shall be the same; and, bids shall be
opened at the time specified in the bidding documents which shall not
be less than thirty minutes after the closing time for the submission of
the bids.
(2)

All bids shall be opened publicly in the presence of the

bidders or their representatives who may choose to be present, at the

time and place announced prior to the bidding and the procuring
agency shall read aloud the unit price as well as the bid amount and
shall record the minutes of the bid opening.
(3)

All bidders in attendance at the time of opening of the bids

shall sign an attendance sheet.

(4)

The bids submitted after the closing time prescribed shall

be rejected and returned without being opened.

18

*31. Evaluation criteria. (1)

A procuring agency shall formulate

an appropriate evaluation criterion listing all the relevant information

against which a bid is to be evaluated and such evaluation criteria
shall form an integral part of the bidding documents.
(2)

Failure to provide for an unambiguous evaluation criteria

in the bidding documents shall amount to mis-procurement.

(3)
open

In simple or standard procurement process like

competitive

bidding

or

procurement

through

direct

request for tender, the procuring agency may use the amount
of the bid price as the sole evaluation criteria for the bids.
* in rule 31, after sub rule (2) the sub rule (3) inserted vide Notification No.S.O(CabinetI)2-9/2015 dated 06.01.2016.

32.

Evaluation of bids. (1) All bids shall be evaluated in

accordance with the evaluation criteria and other terms and conditions
set forth in the prescribed bidding document.
(2)

For purposes of comparison of the bids quoted in different

currencies, the price shall be converted into a single currency specified

in the bidding documents and the rate of exchange shall be the selling
rate, prevailing on the date of opening of bids specified in the bidding
documents, as notified by the State Bank of Pakistan on that day.
(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 issue of notice for invitation of bids.
33.

Clarification of bids. (1) No bidder shall be allowed to alter or

modify his bid after the closing time for the submission of the bids.
(2)

The procuring agency may, if necessary after the opening

of the bids, seek and accept such clarifications of the bid as do not
change the substance of the bid.
(3)

Any request for clarification in the bid, made by the

procuring agency and its response, shall invariably be in writing.

19

34.

Discriminatory and difficult conditions. Save as otherwise

provided, no procuring agency shall introduce any condition, which

discriminates between bidders or which is difficult to meet.
Explanation.- In ascertaining the discriminatory or difficult nature of
any condition, reference shall be made to the ordinary practices of
that trade, manufacturing, construction business or service to which
that particular procurement is related.
*35. Rejection of bids. (1) The procuring agency may reject all
bids or proposals at any time prior to the acceptance of a bid or
proposal.
(2)

The procuring agency shall upon request communicate to

any bidder, the grounds for its rejection of all bids or proposals, but
shall not be required to justify those grounds.
(3)

The procuring agency shall incur no liability, solely by

virtue of its invoking sub-rule (1) towards the bidders.

(4)

The bidders shall be promptly informed about the rejection

of the bids, if any.

(5) A procuring agency may, for reasons to be recorded in
writing, restart bidding process from any prior stage if it is
possible

without

violating

any

principle

of

procurement

contained in rule 4 and shall immediately communicate the

decision to the bidders.
* after sub rule (4) the sub rule (5) inserted vide Notification No.S.O(Cabinet-I)2-9/2015
dated 06.01.2016.

36.

Re-bidding. If the procuring agency rejects all the bids under

rule 35, it may proceed with the process of fresh bidding but before
doing that it shall assess the reasons for rejection and may, if
necessary, revise specifications, evaluation criteria or any other
condition for bidders.

20

*36A.

One person one bid.- (1) In any procurement, one

person may submit one bid and if one person submits more than one
bids, the procuring agency shall reject all such bids.
(2) If a consortium of persons has submitted a bid in any
procurement, it shall be construed that each member of the
consortium submitted the bid.
* after sub rule 36 the rule 36A inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016.

37.

Announcement of evaluation reports. A procuring agency

shall announce the results of bid evaluation in the form of a report

giving justification for acceptance or rejection of bids at least ten days
prior to the award of procurement contract.
38.

Procedures for selection of contractors. (1) Save as

otherwise provided in these rules, single stage one envelope bidding

procedure shall ordinarily be the main open competitive bidding
procedure used for the procurement of works and standard goods.
(2)
other

Other appropriate procedures for selection of contractors

than

consultants

may

be

adopted

in

the

following

circumstances:
(a)

single stage two envelopes bidding procedure shall

be used for procurement of such goods where the
bids are to be evaluated on technical and financial
grounds and the procedure for single stage two
envelopes shall be:
(i)

the bid shall be a single package consisting of

two separate envelopes, containing separately
the financial and the technical proposals;

(ii)

the envelopes shall be marked as Financial

Proposal and Technical Proposal;

(iii)

in the first instance, the Technical Proposal

shall be opened and the envelope marked as
21

Financial

Proposal

shall

be

retained

unopened in the custody of the procuring

agency;
(iv)

the

procuring

agency

shall

evaluate

the

technical proposal in the manner prescribed in

advance, without reference to the price and
shall reject any proposal which does not
conform to the specified requirements;
(i)

during

the

technical

evaluation

no

amendments in the technical proposal shall be

permitted;
(ii)

after the evaluation and approval of the

technical proposals, the procuring agency shall
open the financial proposals of the technically
accepted bids, publically at a time, date and
venue announced and communicated to the
bidders in advance, within the bid validity
period;

(iii)

the

financial

bids

found

technically

non-

responsive shall be returned un-opened to the

respective bidders; and
(iv)

the lowest evaluated bidder shall be awarded

the contract;

(b)

two stage bidding procedure may be adopted in

large

and

complex

contracts

where

technically

unequal proposals are likely to be encountered or

where the procuring agency is aware of its options in
the market but, for a given set of performance
requirements,
acceptable

there

technical

are

two

solutions

or

more

available

equally
to

the

procuring agency and the bidding procedure shall

be:
22

First stage
(i)

in the first instance, the bidders shall submit,

according to the required specifications, a
technical proposal without quoting price;

(ii)

the technical proposal shall be evaluated in

accordance

with

the

specified

evaluation

criteria and may be discussed with the bidders

regarding any deficiencies and unsatisfactory
technical features;
(iii)

after such discussions, all the bidders shall be

permitted to revise their respective technical
proposals to meet the requirements of the
procuring agency;

(iv)

the procuring agency may revise or modify

any aspect of the technical requirements or
evaluation

criteria,

or

it

may

add

new

requirements or criteria not inconsistent with

these rules but any revisions or modifications
shall be communicated to all the bidders at the
time of invitation to submit final bids, and
sufficient time shall be allowed to the bidders
to prepare their revised bids but such time
shall not be less than fifteen days in the case
of national competitive bidding and thirty days
in case of international competitive bidding;
(v)

the

bidders

unwilling

to

conform

their

respective bids to the procuring agencys

technical requirements may withdraw from the
bidding without forfeiture of their bid security;
Second stage
(i)

the bidders, whose technical proposals or bids

have not been rejected and who are willing to

23

conform their bids to the revised technical

requirements of the procuring agency, may
submit a revised technical proposal along with
the financial proposal;
(ii)

the fresh and revised technical proposals and

the financial proposals shall be opened at a
time,

date

and

venue

announced

and

communicated to the bidders in advance but in

setting the date for the submission of the
revised

technical

proposals

and

financial

proposals, a procuring agency shall allow

sufficient time to the bidders to incorporate
the agreed changes in the technical proposal
and

prepare

their

financial

proposals

accordingly; and
(iii)

the revised technical proposal and the financial

proposal shall be evaluated

in

the

manner

prescribed above and the lowest evaluated bid

shall be accepted;
(c)

two stage two envelope bidding method shall be

used for procurement where alternative technical
proposals are possible, such as certain types of
machinery or equipment or manufacturing plant and
the procedure shall be:
First stage
(i)

the

bid

shall

comprise

single

package

comprising two separate envelopes containing

the

financial

proposal

and

the

technical

proposal;
(ii)

the envelopes shall be marked as Financial

Proposal and Technical Proposal;
24

(iii)

in the first instance, the envelope marked

Technical Proposal shall be opened and the
envelope marked as Financial Proposal shall
be retained unopened in the custody of the
procuring agency;

(iv)

the technical proposals shall be discussed with

the bidders with reference to the procuring
agencys technical requirements;

(v)

those bidders willing to meet the requirements

of the procuring agency shall be allowed to
revise their technical proposals following these
discussions; and

(vi)

bidders not willing to conform to the technical

proposal as per revised requirements of the
procuring agency shall be allowed to withdraw
their respective bids without forfeiture of their
bid security;

Second stage
(i)

after agreement between the procuring agency

and the bidders on the technical requirements,
bidders who are willing to conform to the
revised technical specifications and whose bids
have not already been rejected shall submit a
revised technical proposal and supplementary
financial proposal, according to the technical
requirement;

(ii)

the revised technical proposal along with the

original financial proposal and supplementary
financial proposal shall be opened at a date,
time and venue announced in advance by the
procuring agency:
25

Provided that in setting the date for the

submission of the revised technical proposals
and supplementary price proposals a procuring
agency shall allow sufficient time to the
bidders to incorporate the agreed changes in
the technical proposal and to prepare the
required

supplementary

financial

proposal;

and
(iii)

the procuring agency shall evaluate the whole

proposal in accordance with the evaluation
criteria and the lowest evaluated bid shall be
accepted.

CHAPTER-VII
PROCUREMENT OF CONSULTANCY SERVICES
39.

Rights and obligations. The rights and obligations of the

procuring agency and the consultant are governed by general and

special conditions of contract signed between the procuring agency
and the consultant.
40.

Consultant Selection Committee. Every procuring agency,

for the selection of consultant, except for short consultancies, shall set
up a Consultant Selection Committee of odd number members, which
shall consist of the following:
(a)

head of the procuring agency who shall be its chairperson.

(b)

a nominee of the Planning and Development Department,

a nominee of the Finance Department, as members; a
representative of the procuring agency, as a member
(secretary);

(c)

the procuring agency may co-opt up to two members,

having adequate technical knowledge and experience in
the relevant field, for assistance in a given assignment
that requires technical input.
26

41.

Quorum.- Three members, including the chairman of the

Consultant Selection Committee, shall form quorum for conducting the

business of the Consultant Selection Committee.
42.

Decision by simple majority.- All decision of the Consultant

Selection Committee shall be made by majority of the members

present and voting.
43.

Functions

and

responsibilities

of

Committee.-

The

Consultant Selection Committee shall perform the following functions:

(a)

short listing of consultants, responding to the expression

of interest, where applicable, in accordance with the
criteria mentioned in the expression of interest;

(b)

approval of request for proposal before issuance;

(c)

evaluation of technical and financial proposals, according

to the selection method and evaluation criteria, mentioned
in the request for proposal, and in accordance with the
provisions of these rules; and

(d)

finalization of recommendation for selection of consultants

based on evaluation criteria.

44.

Selection of consultants. Depending upon the selection

method, the procuring agency shall include, among others, the

following steps in the process of selection of a consultant:
(a)

preparation and approval of the terms of reference of the

assignment;

(b)

preparation of the cost estimate or budget of the

assignment;

(c)

public

advertisement

of

invitation

of

consultants

expressions of interest and their short-listing;

(d)

preparation and issuance of the request for proposal to the

shortlisted consultants;

(e)

preparation

and

submission

of

proposals

by

the

consultants;
27

45.

(f)

evaluation of technical proposals; and

(g)

opening and evaluation of financial proposals.

Methods for selection of consultants.- (1) A procuring

agency may utilize one of the methods mentioned in succeeding subrules for selection of a consultant.
(2)

Least Cost Selection: This is the preferred method for

selecting consultants for assignments of standard or routine nature

such as audit, simple engineering design or supervision of noncomplex
works, where the well-established practices and standards exist.
(3)

Quality and Cost Based Selection: This method may be

used where:
(a)

quality is the prime consideration while cost is a

secondary consideration;

(b)

terms of Reference are well defined;

(c)

the financial proposals of only those technically

responsive bidders who obtained minimum sixty five
percent marks shall be opened;

(d)

a combined evaluation of the technical and financial

proposals is carried out by weighting and adding the
quality and the cost scores;

(e)

the weight for quality is normally of eighty percent

with twenty percent given to cost and more than
twenty percent weight to the cost of the services is
justified only in relatively routine and straightforward
assignments (such as design of simple structures),
whereas in no cases it should exceed thirty percent
and the consultant obtaining the highest combined
score is invited for negotiations;

28

(4)

Quality Based Selection: This system may be used for

highly specialized, innovative and complex assignments, where quality

is the predominant factor.
(5)

Subject to sub-rule (6), a procuring agency may, in a

complex project and with the prior approval of the Government,

engage,

through

direct

contracting,

an

organization

owned

or

controlled by the Government, the Federal Government or any other

Provincial Government.
(6)

In case of engagement of an organization under sub-rule

(5), the procuring agency shall:

(a)

record reasons in writing for direct contracting and

shall issue a certificate of reason-ability of the
negotiated

price

of

consultancy

based

on

the

principles of procurement contained in rule 4; and

(b)

obtain approval of the Authority to the extent of

declaring the project as complex project.

(7)

A procuring agency may, after recording reason in writing,

use any method for selection of consultant other than least cost
selection.
*46. Selection process of individual consultant.- The following
shall be the selection process of individual consultant in a short
consultancy:
* after the words selection process of individual consultant the words in a short
consultancy inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

(a)

individual consultant may not be required to submit

proposals and shall be selected based on the
qualifications and experience for the assignment;

(b)

individual consultant shall be selected by comparing

the qualifications and experience of at least three
consultants

among

those

who

have

expressed

29

interest in the assignment or have been approached

directly by the procuring agency;
(c)

individual consultant considered for the comparison

of qualifications and experience shall meet the
minimum

relevant

qualifications,

and

the

one

selected to be employed by the procuring agency

shall be the best qualified and shall be fully capable
of carrying out the assignment;
(d)

individual consultant may be selected on a singlesource basis (with due justification) in exceptional
cases such as an emergency situation resulting from
a natural disaster or where the individual is the only
consultant qualified for the assignment;

(e)

for key assignments, interviews may be set up, if

required.

47.

Expression of interest.- (1) A request for expression of

interest shall be advertised in accordance with the provisions of rule

12 and rule 13.
(2)

The expression of interest shall contain the following

information:
(a)

the name and address of procuring agency;

(b)

an

appropriate

description

of

the

assignment

providing scope of the intellectual and professional

services required;
(c)

closing date and place of the submission of the

expression of interest;

(d)

criteria for short listing or prequalification where

required; and

(e)

any other information that the procuring agency

may deem appropriate to disseminate at this stage.

30

48.

Request for proposals. (1) A procuring agency shall use a

request for proposal for seeking proposals from the shortlisted or

pre-qualified consultants which shall include the following:
(a)

letter of invitation: the letter of invitation shall mention

the name and address of the procuring agency and its
intention

to

enter

into

contract

for

provision

of

consulting services and contain names of all the short

listed firms;
(b)

instruction to consultants: the instructions to consultants

shall contain all necessary information that may help them
prepare responsive proposals;

(c)

terms

of

reference:

the

terms

of

reference

shall

unambiguously define the objectives, goals and scope of

the assignment, core team of required experts, expected
deliverables with timelines and list of services necessary to
carry out the assignment;
(d)

evaluation criteria: except as otherwise provided, the

evaluation of proposals shall be carried out giving due
consideration to quality and cost;

(e)

type of contract: a procuring agency, depending on the

circumstances, may use one of the following types of
contracts:
(i)

lump

sum

contract

shall

be

used

mainly

for

assignments in which the content, duration of the

services and the required output are unambiguously
defined;
(ii)

time based contract shall be used when it is difficult

to define the scope and the length of services;

(iii)

hourly or daily rates shall be used for small projects,

especially when the assignment is for less than a
month; and
31

(iv)

any other, based on combination of the above and

including out of pocket expenses, where required;

(f)

special provisions: a procuring agency may specify any

other requirement related to the assignment or contract,
where required.

(2)

A procuring agency shall invite the prospective consultants

to submit their technical and financial proposals in separately sealed

envelopes and the procuring agency shall give deadline for submission
of proposals but the consultants shall be given adequate time to
prepare their proposals which shall not be less than two weeks.
*49.
* rule 49 omitted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

50.

Evaluation of quality of consulting services. Evaluation

criteria for technical evaluation of consultants shall include the

following:
(a)

experience:

the

consultants

specialized

skills,

working on the similar assignment and access to

particular technologies related to the assignment;
(b)

financial

capability:

financial

capability

of

the

consultant may be evaluated with a view to ensuring

that the consultant can complete the assigned task
in a timely manner;
(c)

approach

and

methodology:

the

methodology

proposed by the consultants shall be evaluated for

its innovativeness and soundness;
(d)

quality management: the availability of a wellestablished quality management system may be

taken

into

account

for

large

and

complex

assignments; and
(e)

staff proposed: qualification and experience of the

proposed staff of the consultant in the relevant field.
32

51.

Association of consultants. (1) An association of consultants

may take either the form of a joint venture or a subcontract and such
association

may

participate

in

procurement

process

with

the

permission of the procuring agency.

(2)

Under a joint venture, all members, if awarded the

contract, shall individually sign and be jointly and severally liable for
the entire assignment and such an association may be known as a
consortium, association or joint venture.
52.

Intellectual property rights. (1) All documents, reports,

designs, research work and all deliverables prepared by the consultant

shall become and remain the property of the procuring agency.
(2)

Any restrictions on the future use of these documents and

software by the consultant shall be specified in the conditions of the

contract.
53.

Negotiations. (1) Notwithstanding the provision under rule

57, the procuring agency may negotiate with the highest ranked
bidder for consultancy regarding methodology, work plan, staffing,
contract price and special conditions of the contract.
(2)

In case of failure of negotiations, the procuring agency

may invite the next ranked bidder.

(3)

A committee of the procuring agency shall negotiate with

the consultant and negotiation by a single person on behalf of the

procuring agency shall not be allowed.
54.

Professional liability of consultant. (1) The consultant

selected and awarded a contract shall be liable for consequence of

errors or omissions on the part of the consultant.
(2)

The extent of liability of the consultant shall form part of

the contract and such liability shall not be less than remunerations nor
it shall be more than twice the remunerations.

33

(3)

The procuring agency may demand insurance on part of

the consultant to cover the liability of the consultant and necessary

costs shall be borne by the consultant.
(4)

The consultant shall be held liable for all losses or

damages suffered by the procuring agency on account of any

misconduct by the consultant in performing the consulting services.
CHAPTER-VIII
ACCEPTANCE OF BIDS AND AWARD OF CONTRACTS
55.

Acceptance of bids. Subject to these rules, the bidder with

the lowest evaluated bid, if not in conflict with any other law, shall be
awarded the procurement contract within the original or extended bid
validity period.
*55A. Single complying proposal.- Subject to rule 35, if one
complying bid is received, the procuring agency may award the
contract to the bidder.
* after rule 55 rule 55A inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016.

56.

Performance

guarantee.

Where

needed

and

clearly

expressed in the bidding documents, the procuring agency shall

require the successful bidder to furnish a performance guarantee
which shall not exceed ten percent of the contract amount.
57.

Limitation on negotiations. (1) Save as otherwise provided

in these rules, a procuring agency shall not negotiate with any of the
bidders.
(2)

In case of goods of highly technical nature, the procuring

agency shall ensure that the bidders submit the revised financial bids
immediately after opening of the financial bids in the same manner as
the earlier financial bids were submitted and the procuring agency
shall not allow extra time for submission of revised financial bids by
the bidders.
(3)

In this rule, the expression goods of highly technical

nature means all goods including machinery, its parts and micro34

components, industrial, scientific or electronic equipment, plant and

tools which are sophisticated in nature costing more than fifty million
rupees and procured by adopting the two stages-two envelope
procurement procedures.
58.

Confidentiality.

The

procuring

agency

shall

keep

all

information regarding the bid evaluation confidential until the time of

the announcement of the evaluation report.
59.

Alternative methods of procurements. A procuring agency

may utilize the following alternative methods of procurement of goods,

services and works:
(a)

petty purchases: a procuring agency may provide for petty

purchases where the object of the procurement

is

below

the

financial limit of fifty thousand rupees and such procurement

shall be exempted from the requirements of bidding or quotation
of prices; the procuring agency shall, however, ensure that
procurement of petty purchases is in conformity with the
principles of procurement;
(b)

petty purchases through quotation: a

procuring

agency

may

provide for petty purchases through at least three quotations

where the cost of the procurement is more than fifty thousand
rupees but less than one hundred thousand rupees and such
procurement shall be exempted from the requirements of
bidding procedures; the procuring agency shall, however, ensure
that such procurement is in conformity with the principles of
procurement;
(c)

direct contracting: a procuring agency shall only engage in

direct contracting if any of the following conditions exist:
(i)

the procurement concerns the acquisition of spare parts or

supplementary services from original manufacturer or
supplier when the same are not available from alternative
sources;
35

(ii)

only one manufacturer or supplier exists for the required

procurement but in such a case, the procuring agency
shall specify the appropriate fora which may authorize
procurement of proprietary object after due diligence; and

(iii)

where a change of supplier may result in acquisition of

material

having

characteristics

different

that

technical

may

cause

specifications

or

incompatibility

or

disproportionate technical difficulties in operation and

maintenance; and the contract does not exceed three
years in duration;
(iv)

repeat orders not exceeding fifteen percent of the original

procurement;

(v)

in case of an emergency but the procuring agency shall

specify appropriate fora vested with necessary authority to
declare an emergency;

(vi)

when the price of goods, services or works is fixed by the

Government or any other authority, agency or body under
the law; and

(vii)

for

purchase

manufacturers

of

motor

or

vehicle

their

from

authorized

local

original

agents

at

manufacturers price.
(d)

negotiated tendering: a procuring agency may engage in

negotiated tendering with one or more contractors with or
without prior publication of a procurement notification but this
procedure shall only be used when:
(i)

the supplies involved are manufactured purely for the

purpose of supporting a specific piece of research or an
experiment, a study or a particular development;

(ii)

for technical or artistic reasons, or for reasons connected

with protection of exclusive rights or intellectual property,

36

the supplies may be manufactured or delivered only by a

particular supplier;
(iii)

for reasons of extreme urgency brought about by events

unforeseeable by the procuring agency, the time limits laid
down for open and limited bidding methods cannot be
met,

however,

the

circumstances

invoked

to

justify

extreme urgency must not be attributable to the procuring

agency; and
(iv)

the Provincial Cabinet, for reason to be recorded in

writing, approves any specific procurement to be made on
urgent basis and shall fix the time for such urgency.

60.

Unsolicited proposal. In case of unsolicited proposal received

for any engineering, procurement and construction project involving

cost of one thousand million rupees and above, the procuring agency
shall process the proposal to ascertain its viability and after such
process if the proposal is found viable, the procuring agency:
(a)

shall advertise the proposal for open competition without

disclosing the name of the initiator of unsolicited proposal;

(b)

shall conduct prequalification process;

(c)

shall exempt the initiator of the unsolicited proposal from

the prequalification;

(d)

if no other bidder in response to the advertisement

submits bid, the procuring agency may award the contract
to the initiator of the proposal;

(e)

in case of bidding competition, the initiator of the proposal

shall be given first right of refusal if the initiator does not
emerge as the lowest bidder; and

(f)

shall award five percent additional weightage to the

initiator of the proposal from the combined score of
technical and financial evaluation.

*Substituted vide Notification No. ADMN(PPRA)10-2/2014 dated 11.03.2014

37

*61. Exemption. (1) The Government or the Board shall not relax
application of these rules for procurement of services.
(2) A procuring agency may directly procure goods from a public
sector manufacturing unit on fixed price or negotiated price where
value of procurement does not exceed one million rupees.
(3) Where value of goods exceeds one million rupees or in a
competitive bidding, the public sector manufacturing unit participating
in the bid may, within three working days of opening of the bids,
match the lowest evaluated bid.
(4) In this rule, public sector manufacturing unit means a
manufacturing unit owned or controlled by the Government, Federal
Government, local government or by an organization which is owned
or controlled by any of these Governments and enlisted on the website
of the Authority.
* in sub rule (1) the word exempt substituted with the word relax, sub rule (2)
and (3) substituted and sub rule (4) inserted vide Notification No.S.O(Cabinet-I)2-9/2015
dated 06.01.2016.

62.

On account payments. A procuring agency shall make

prompt payments to the contractor against the invoice or running bill

on satisfactory performance within the time given in the conditions of
the contract which shall not exceed thirty days.
63.

Commencement of procurement contract. A procurement

contract shall come into force:

(a)

where no formal signing of a contract is required, from the

date the notice of the acceptance of the bid or purchase
order has been given to the bidder whose bid has been
accepted and such notice of acceptance or purchase order
shall be issued within a reasonable time; or

(b)

where the procuring agency requires signing of a written

contract, from the date on which the signatures of both
the procuring agency and the successful bidder are affixed
38

to the written contract and such affixing of signatures shall

take place within a reasonable time; and
(c)

where the coming into force of a contract is contingent

upon fulfillment of a certain condition or conditions, the
contract shall take effect from the date whereon such
fulfillment takes place.

64.

Closing of contract. (1) Except for defect liability by the

contractor, as specified in the conditions of contract, performance of

the contract shall be deemed close on the issue of overall delivery
certificate or taking over certificate which shall be issued within thirty
days of final taking over of goods or receiving the deliverables or
completion of works enabling the contractor to submit final bill.
(2)

In case of defect liability, defect liability certificate shall be

issued within thirty days of the expiry of the said period enabling the
contractor to submit the final bill, except for unsettled claims, which
shall be settled through resolution of dispute mechanism provided in
the contract.
64A. Assignment.- A procuring agency may assign whole or part of
procurement process to another procuring agency with the consent of
that other procuring agency.
* after rule 64, the rule 64A inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016.

CHAPTER-IX
MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION
65.

Record of procurement. (1) A procuring agency shall

maintain a record of a procurement along with all associated

documents for a minimum period of five years.
(2)

Such maintenance of record shall be subject to the

regulations framed in this regard from time to time.

66.

Public access and transparency. (1) As soon as a contract

has been awarded, the procuring agency shall make all documents
related to the evaluation of the bid and award of contract public.
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(2)

Where the disclosure of any information related to the

award of a contract is of proprietary nature or where the procuring

agency is convinced that such disclosure shall be against the public
interest, it may withhold only such information from public disclosure
subject to the prior approval of the Authority.
CHAPTER-X
REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES
67.

Redressal of grievances by the procuring agency. (1) The

procuring agency shall constitute a committee comprising of odd

number of persons, with proper powers and authorizations, to address
the complaints of bidders that may occur prior to the entry into force
of the procurement contract.
(2)

Any bidder feeling aggrieved by any act of the procuring

agency after the submission of his bid may lodge a written complaint
concerning his grievances not later than *ten days after the
announcement of the bid evaluation report.
(3)

The committee shall investigate and decide upon the

complaint within fifteen days of the receipt of the complaint.

(4)

Mere fact of lodging of a complaint shall not warrant

suspension of the procurement process.

68.

Arbitration. (1) After coming into force of the procurement

contract, disputes between the parties to the contract shall be settled

through mediation or arbitration.
(2)

The procuring agency shall provide for a method of

mediation or arbitration or both in the procurement contract.

69.

Mis-procurement. Any violation of these rules shall be

treated as mis-procurement.
70.

Repeal. The Punjab Procurement Rules, 2009 issued vide

notification No.MD(PPRA)2-1/2010 are hereby repealed.

*Substituted vide Notification No. ADMN(PPRA)10-2/2014 dated 11.03.2014

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*SCHEDULE
{see sub-rule (6) of rule 21}
BLACKLISTING MECHANISM OR PROCESS
1.

The procuring agency may, on information received from any

resource, issue show cause notice to a bidder or contractor.

2.

The show cause notice shall contain:

(a)

precise allegation, against the bidder or contractor;

(b)

the maximum period for which the procuring agency

proposes

to

debar

the

bidder

or

contractor

from

participating in any public procurement of the procuring

agency; and
(c)

the statement, if needed, about the intention of the

procuring agency to make a request to the Authority for
debarring the bidder or contractor from participating in
public procurements of all the procuring agencies.

3.

The procuring agency shall give minimum of seven days to the

bidder or contractor for submission of written reply of the show
cause notice.

4.

In case, the bidder or contractor fails to submit written reply

within the requisite time, the procuring agency may issue notice
for personal hearing to the bidder or contractor/ authorize
representative of the bidder or contractor and the procuring
agency shall decide the matter on the basis of available record
and personal hearing, if availed.

5.

In case the bidder or contractor submits written reply of the

show cause notice, the procuring agency may decide to file the
matter or direct issuance of a notice to the bidder or contractor
for personal hearing.

6.

The procuring agency shall give minimum of seven days to the

bidder or contractor for appearance before the specified officer
of the procuring agency for personal hearing.

7.

The procuring agency shall decide the matter on the basis of the
available

record

and

personal

hearing

of

the

bidder

or

contractor, if availed.

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8.

The procuring agency shall decide the matter within fifteen days
from the date of personal hearing unless the personal hearing is
adjourned to a next date and in such an eventuality, the period
of personal hearing shall be reckoned from the last date of
personal hearing.

9.

The procuring agency shall communicate to the bidder or

contractor the order of debarring the bidder or contractor from
participating in any public procurement with a statement that
the bidder or contractor may, within thirty days, prefer a
representation against the order before the Managing Director of
the Authority.

10.

The procuring agency shall, as soon as possible, communicate

the order of blacklisting to the Authority with the request to
upload the information on its website.

11.

If the procuring agency wants the Authority to debar the bidder

or contractor from participating in any public procurement of all
procuring agencies, the procuring agency shall specify reasons
for such dispensation.

12.

The Authority shall immediately publish the information and

decision of blacklisting on its website.

13.

In case of request of a procuring agency under para 11 or

representation of any aggrieved person under rule 21, the
Managing Director shall issue a notice for personal hearing to
the parties and call for record of proceedings of blacklisting. The
parties may file written statements and documents in support of
their contentions.

14.

In case of representation of any aggrieved person or procuring

agency under rule 21, the Chairperson shall issue a notice for
personal hearing to the parties and may call for the record of
the proceedings. The parties may file written statements and
documents in support of their contentions.

15.

In every order of blacklisting under rule 21, the procuring

agency shall record reasons of blacklisting and also reasons for
short, long or medium period of blacklisting.

16.

The Authority shall upload all the decisions under rule 21,
available with it, on its website. But the name of a bidder or
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contractor shall immediately be removed from the list of

blacklisted persons on expiry of period of blacklisting or order of
the competent authority to that effect, whichever is earlier.
17.

An effort shall be made for electronic communication of all the

notices and other documents pursuant to this mechanism or
process.

* schedule added after rule 70 vide Notification No.S.O(Cabinet-I)2-9/2015 dated

06.01.2016.

CHIEF SECRETARY
GOVERNMENT OF THE PUNJAB

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