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1st July, 2023

PREFACE

One of the principal mandates and powers of the Ministry of Finance, as provided under
section 104 (i) of the Public Finance (amendment) Act of Bhutan 2012 is to issue rules,
manuals, directives, instructions or notifications ensuring an equitable, transparent,
competitive and cost-effective procurement system in the country for which this Standard
Bidding Document (SBD) for the Procurement of Goods (up to 0.5 million) 2023 is drafted
as implementing document of Procurement Rules and Regulation 2023.

This SBD is the revision of Standard Bidding Document for the Procurement of Works (Up
to 5 million) 2019 with the inclusion of provisions amended vide various notifications and
fiscal measures proven to be effective in achieving basic principles of public procurement.

Ministry of Finance in the exercise of the power conferred by the section 104 (i) of the
Public Finance (amendment) Act of Bhutan 2012 hereby adopts SBD for the Procurement
of Goods (up to 5 million) 2023 vide 141st Policy and Planning Coordination Meeting on
20th February, 2023 which shall come into effect from 1st July 2023.

Any queries, clarification, interpretation on this standard bidding document contact:

Procurement Management and Development Division

Department of Procurement and Properties
Ministry of Finance
Email – [email protected]
Contact – 336962

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 Table of Contents

1. Invitation for Quotation (IFQ).................................................................................... 5

2. Schedule of Items and Priced Quotation (bid form).................................................. 9
3. Technical Specification of the Goods Required...................................................... 10
4. Documents required to be submitted as part of the Quotation................................11
5. Terms and Conditions for the Supply of Goods and Payment................................ 12
6. Bid-Securing Declaration........................................................................................ 14
7. Performance Security............................................................................................. 15
8. Contract Agreement................................................................................................16
9. Bank Guarantee for Advance Payment.................................................................. 18
10. Supply Order for the Supply of Goods.................................................................... 19

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 Request for Quotation for Supply of Goods

[Procuring agency to describe here the nature of the Goods and Contract Package
Numbers as per the Procurement Plan]

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 [Procuring agency to use normal Letter Headed format]

1. Invitation for Quotation (IFQ)

Date:

Project title:_________________________
Source of Funding: __________________
Contract Ref:_______________________

To:
_____________________________
_____________________________

Dear Sir/ Madam,

1. You are invited to submit your priced bid for the supply of the following items:
i)

ii)

iii) [Information on technical specifications and required quantities are attached]

2. The Bidder(s) may quote for any or all items under this invitation1. Each item shall be
evaluated and contract awarded separately to the firm(s) offering the best evaluated
price for each item Or (use one and delete the other) The Bidder(s) must quote for all
the items under this invitation. Price quotations will be evaluated for all the items
together and contract awarded to the firm offering the best evaluated total cost of all
the items.

3. The Bidder(s) shall submit one original of the priced quotation with the Form of Bid
and clearly marked ORIGINAL. In addition, the bidder(s) should also submit one copy
marked as COPY. The quotation including all documents in the attached format should
be sealed in an envelope as required by PRR 2023 clause 5.1.7.2 and addressed to
and delivered at the following address [insert address of receipt of Bids]. OR (use one
of them)

1 The Procuring Agency shall specify the evaluation criteria and should use appropriately. It should be clarified that whether the evaluation will be done item wise or as whole package.

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The price quotation in the form attached may be submitted by facsimile or electronically at
the following address: [insert facsimile or email address]2.

Your quotation in the required format should be addressed and submitted to:

Telephone:

Fax:

Email:

4. The deadline for receipt of your quotation(s) by the procuring agency at the
indicated address is [insert date &time]

5. Bids must be accompanied by a Bid Securing Declaration in lieu of Bid Security

using the form1.

i. Any Bid not accompanied by a Bid-Securing Declaration in the prescribed

format shall be rejected by the procuring agency as non-responsive.

ii. The Bid-Securing Declaration shall be executed:

a) If the Bidder withdraws the Bid after Bid opening during the period of Bid
validity.

b) If the Bidder does not accept the correction of the Bid price as Clause per 7 (b)
(iii);

c) In the case of a successful Bidder, if the Bidder fails within the specified time
limit to sign the Agreement; or furnish the required Performance Security.

iii. In case Bid Securing Declaration is executed, the Bidder shall deposit the Bid
Security of Nu. [Insert the amount between range of 1-2% of the departmental
estimate to be forfeited] within 5 days from date of notification by Procuring
agency.

iv. In case the Bidder fails to comply 5 (iii), Bidder shall be debarred from being
eligible for Bidding or submitting Bid with all government procuring agencies for
a period prescribed in the Debarment Rules.

6. Quotation by fax or by electronic means (are or are not) acceptable [delete

whichever is not applicable]

2 This option is generally not encouraged which should be used only in urgent situation and before initiating any procurement of this sort, the agency initiating this method should seek approval from the

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7. The quotation should be submitted as per the following instructions and in
accordance with the attached Contract. The attached Terms and Conditions of Supply
is an integral part of the Contract.

a) PRICE: all prices shall be quoted in Ngultrum. The quoted price shall be
inclusive of all related costs including taxes, duties and other levies to the final
place of delivery. The final place of delivery is (insert final place of delivery)

b) EVALUATION OF QUOTATION: offers determined to be substantially

responsive to the technical specifications will be evaluated by comparison of
their quoted prices. In evaluating the quotations, the procuring agency will
determine for each quotation the evaluated price by adjusting the price
quotation by making any correction for any arithmetical errors as follows;

i. where there is a discrepancy between amounts in figures and in words, the

amount in words will govern;

ii. where there is discrepancy between the unit rate and the line item total
resulting from multiplying the unit rate by the quantity, the unit rate as quoted
shall govern unless in the opinion of the Employer there is an obviously gross
misplacement of the decimal point in the unit rate, in which case the line item
total as quoted shall govern, and the unit rate shall be corrected.

iii. if the supplier refuses to accept the correction, this quotation will be rejected
and the Bid security shall be forfeited.

c) AWARD OF PURCHASE ORDER: the award will be made to the Bidder who is
offering the lowest evaluated price that meets the specifications. The
successful Bidder will sign a contract as per attached form-2 of the contract
with the terms and conditions of supply.

d) VALIDITY OF THE OFFERS: your quotation(s) shall be valid for a period of

[insert validity period] from the deadline for receipt of quotation(s).

e) The supply of the goods shall be completed within………..from the date of

issue of the Purchase Order, or the signing of the contract.

8. Further information can be obtained from: [insert address for information here]

9. The quotation(s) will be opened on the same day of submission deadline in the
presence of Bidders or their representatives who choose to attend at the specified
venue and time.

10. The Procuring agency is not bound to accept the lowest Bid and reserves the right to
accept or reject any or all the Bids.

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11. The Bidder whose Bid is accepted will be notified of the award of contract by the
Procuring agency prior to expiration of the quotation validity period. The terms of the
accepted offer shall be incorporated in the supply order form-5.

12. If no bidder submits any complaint within the standstill period of 5 days, the bidder
whose bid is accepted will be notified of the award of contract by the Procuring
Agency prior to expiration of the quotation validity period. The terms of the accepted
offer shall be incorporated in the supply order Form- 5.

13. Normal commercial warranty/guarantee shall be applicable to the supplied goods.

14. Ten percent (10%) of the Contract Price shall be paid within thirty (30) days of
signing of the Contract, and upon submission of a claim and an advance payment
guarantee form- 4 for the equivalent amount valid until the Goods are delivered and
in the form provided in the Bidding Documents.

15. Ninety percent (90%) of the Contract Price shall be paid to the Supplier within
twenty-five (25) days after the date of the acceptance certificate for the respective
delivery issued by the Procuring agency. The ten (10) percent performance security
shall be retained as security deposit and paid at the end of the warranty period or
after six (6) months whichever is later after adjustment of dues if any.

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 2. Schedule of Items and Priced Quotation (bid form)
[Describe below the items, unit and quantity of the goods required].

Sl Item Description & Unit Qty Unit Rate Total

Details (minimum (Nu.) Amount
specifications of goods to be (Nu.)
supplied)

1
2
3
4
5
6
7
8
Sub-Total for Supply of Goods
Total Amount for Supply of Goods to Procuring agency
(including all types of cost)

Goods to be supplied to [Destination of Goods]

Total Amount in Nu. (in words) insert the Total Amount for Supply of Goods including all
related costs].
Number of days from the date of
issue of the purchase order by the
Delivery period Procuring agency
Warranty Provided Months from date of supply or commissioning of the
Goods.

Signature of Supplier Supplier’s Official Stamp

Name of Supplier

Date

[The Supplier may attach copies of relevant brochures/catalogue for the goods to
be supplied, which will give sufficient information to carry out effective evaluation]

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 3. Technical Specification of the
Goods Required

S ITEM SPECIFICATION
N
1
2
3
4
5
6
7
8

The Supplier is required to mention make / model (as applicable) of the goods to be
sup-plied and must attach the appropriate original printed literature / brochures for the
various items listed.
Supplier’s Stamp
Signature of Supplier

Name of Supplier

Date

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 4. Documents required to be submitted as part of the Quotation

The original and copy(ies) of quotation submitted by the supplier shall comprise the
following:

(a) A duly completed and signed priced quotation as per the Schedule of Items
and the Priced Quotation.

(b) A valid Trade License3;

(c) A valid Tax Clearance Certificate;

(d) Bid- Securing Declaration;

(e) Technical Specification of the Goods to be supplied; and

(f) Any other requirements specified in this document.

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The non-submission of historical (b & c) documents should not become rejection criteria and Bidder should be allowed
to submit again

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 5. Terms and Conditions for the Supply of Goods and Payment

The Terms and Conditions hereinafter may only be varied with the written agreement of
the Procuring agency and no terms and conditions put forward at any time by the
Supplier shall form any part of the Contract.

1. The Supplier shall be required to submit a performance security of 10% of the quoted
price in the form of cash warrant, demand draft or unconditional Bank Guarantee
issued by a financial institution located in Bhutan, which shall be furnished upon
signing the contract. Performance security shall be valid till the end of warranty period
and will be returned after the end of warranty period.

2. The supply order for one-time purchases shall be sent within five (5) working days
after signing of contract.

3. The supply of the goods shall be completed within the number of days specified in the
contract from the date of issue of the Supply Order, or the signing of the contract;

4. Payment of the Invoice shall be arranged by the Procuring agency, within twenty-five
(25) days upon submission of original Invoice and TPN number, against the actual
supplied quantities of goods as listed in the Supply Order.

5. The quoted price shall include all taxes, duties, insurance and any other costs
involved and nothing extra shall be paid.

6. Any goods found defective during the warranty period shall be replaced/ repaired by
the Supplier at his cost. If the supplier fails to rectify and or replace the defective
goods, the Procuring agency shall do it at the cost of the supplier.

7. The Supplier shall pay liquidated damages at the rate of 0.1% per day for each day of
delay to a maximum of 10% of the quoted price.

8. The Procuring agency may, by written notice, terminate the Purchase Order (or
Contract if applicable) in whole or in part at any time for its convenience:

a. if the Supplier fails to perform any other Terms and Conditions specified with
the Purchase Order, or exceeds the maximum amount of liquidated damages;

b. if the Supplier fails to perform any other obligation(s) under the Purchase Order;

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 c. if the Supplier does not take any remedial action within a period of (7) seven
calendar days after receipt of a notice of default from the Procuring agency
specifying the nature of the default(s); or

d. if the Supplier, in the judgment of the Procuring agency, has engaged in any
corrupt or fraudulent practices in competing for or in executing the tasks under
this Purchase Order.

9. Following the termination of contract, the Procuring Agency may directly award or
directly procure from the market.

10. The Supplier shall provide the warranty, as stipulated in the Quotation document, for
the goods to be supplied and confirm that if any faults are detected within the
warranty period in the supplied/installed goods, the Supplier shall be bound to rectify
the fault or replace the goods as the case may be. The security deposit shall be
used to cover the cost of supplies not delivered or defective items not replaced or
rectified.

11. The procuring agency may procure any of the items from the open market in case
the supplier fails to supply the goods within the stipulated time and realize the
difference amount between the quoted price & market price from the security
deposit.

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 6. Bid-Securing Declaration

Date:

IFB No.:

To:____________________

We, the undersigned, declare that:

We understand that, according to your conditions, Bids must be supported by a Bid-

Securing Declaration.

We accept that we are required to pay the bid security amount specified in the Bidding
Data Sheet within 5 days of your instruction and failure to do so will automatically debar us
(not eligible for Bidding or submitting Bid in any contract across all Government Agencies)
for a period prescribed in the Debarment Rules, if we are in breach of our obligation(s)
under the Bid conditions, because we:

(a) have withdrawn our Bid during the period of Bid validity specified by the Bidder in
the Form of Bid; or

(b) having not accepted the correction of errors in accordance with the IFQ; or

(c) Having been notified of the acceptance of our Bid by the Procuring agency during
the period of Bid validity, (i) fail or refuse to furnish the performance security in accordance
with the T&C (i), or (ii) fail or refuse to execute the Contract.
The procuring agency has the authority to immediately go to the next bidder, once the
notice is served to the defaulting bidder.

Signed:______________________

In the capacity of______________

Name:__________________________

Duly authorized to sign the Bid for and on behalf of: __________________

Dated on_________________day of Corporate Seal (where appropriate)

Affix Legal Stamp

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 7. Performance Security

[The bank, as requested by the successful Bidder, shall fill in this form in accordance with
the instructions indicated]

Date: [insert date (as day, month, and year) of Bid submission]
IFB No. and title: [insert no. and title of bidding process]

Bank’s Branch or Office: [insert complete name of Guarantor]

Beneficiary: [insert complete name of Procuring agency]

PERFORMANCE GUARANTEE No. : [insert Performance Guarantee number]

We have been informed that [insert complete name of Supplier] (hereinafter called “the
Supplier”) has entered into Contract No. [insert number] dated [insert day and month],
[insert year] with you, for the supply of [description of Goods and related Services]
(hereinafter called “the Contract”).
Furthermore, we understand that, according to the conditions of the Contract, a
Performance Guarantee is required.
At the request of the Supplier, we hereby irrevocably undertake to pay you any sum(s) not
exceeding [insert amount(s) in figures and words] upon receipt by us of your first demand
in writing declaring the Supplier to be in default under the Contract, without cavil or
argument, or you needing to prove or to show grounds or reasons for your demand or the
sum specified therein.
This Guarantee shall expire no later than the [insert number] day of [insert month] [insert
year], and any demand for payment under it must be received by us at this office on or
before that date. We agree to an extension of this Guarantee for a period as required by
the procuring agency in response to the procuring agency’s written request for such
extension, such request to be presented to us before the expiry of the Guarantee.

[Signatures of authorized representatives of the bank and the Supplier]

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 8. Contract Agreement
[The successful Bidder shall fill in this form in accordance with the instructions indicated]

THIS CONTRACT AGREEMENT made the [insert number] day of [insert month], [insert
year], BETWEEN

(1) [insert complete name of Procuring agency], a [insert description of type of legal
entity, for example, an agency of the Ministry of .... of the Government of Bhutan, or
corporation incorporated under the laws of Bhutan] and having its principal place of
business at [insert address of Procuring agency] (hereinafter called “the Procuring
agency”), and

(2) [insert name of Supplier], a corporation incorporated under the laws of [insert:
country of Supplier] and having its principal place of business at [insert: address of
Supplier] (hereinafter called “the Supplier”).

WHEREAS the Procuring agency invited Bids for certain Goods and ancillary services, viz.,
[insert brief description of Goods and Services] and has accepted a Bid by the Supplier for the
supply of those Goods and Services in the sum of [insert Contract Price in words and figures,
expressed in the Contract currency/ies] (hereinafter called “the Contract Price”).
NOW THIS AGREEMENT WITNESS AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to.

2. The following documents shall constitute the Contract between the Procuring agency
and the Supplier, and each shall be read and construed as an integral part of the
Contract, viz.:

(a) This Contract Agreement;

(b) Terms and Conditions;

(c) Technical Requirements (including Schedule of Supply and Technical

Specifications);

(e) The Supplier’s Bid and original Price Schedules;

(f) The Procuring agency’s Notification of Award of Contract;

(g) The form of Performance Security;

(h) The form of Bank Guarantee for Advance Payment; and

(i) [insert here any other document(s) forming part of the Contract]

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3. This Contract shall prevail over all other Contract documents. In the event of any
discrepancy or inconsistency within the Contract documents, then the documents
shall prevail in the order listed above.

4. In consideration of the payments to be made by the Procuring agency to the Supplier

as here in after mentioned, the Supplier hereby covenants with the Procuring agency
to provide the Goods and Services and to remedy defects therein in conformity in all
respects with the provisions of the Contract.

5. The Procuring agency hereby covenants to pay the Supplier in consideration of the
provision of the Goods and Related Services and the remedying of defects therein, the
Contract Price or such other sum as may become payable under the provisions of the
Contract at the times and in the manner prescribed by the Contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with the laws of Bhutan on the day, month and year indicated above.
For and on behalf of the Procuring agency Signed: [insert signature]
In the capacity of [insert title or other appropriate designation]

In the presence of [insert signature] [insert identification of official witness]

For and on behalf of the Supplier

Signed: [insert signature of authorized representative(s) of the

Supplier] In the capacity of [insert title or other appropriate designation]

In the presence of [insert signature]

[insert identification of official witness]

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 9. Bank Guarantee for Advance Payment
[The bank, as requested by the successful Bidder, shall fill in this form in accordance with
the instructions indicated.]

Date: [insert date (as day, month, and year) of Bid Submission]
IFB No. and title: [insert number and title of bidding process]

[Bank’s letterhead]

Beneficiary: [insert legal name and address of Procuring agency]

ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.]

We, [insert legal name and address of bank], have been informed that [insert complete
name and address of Supplier] (hereinafter called “the Supplier”) has entered into Contract
No. [insert number] dated [insert date of Contract] with you, for the supply of [insert types
of Goods to be delivered] (hereinafter called “the Contract”).

Furthermore, we understand that, according to the conditions of the Contract, an Advance

Payment is to be made against an Advance Payment Guarantee.

At the request of the Supplier, we hereby irrevocably undertake to pay you any sum or
sums not exceeding in total an amount of [insert amount(s) in figures and words] upon
receipt by us of your first demand in writing declaring that the Supplier is in breach of its
obligation under the Contract because the Supplier used the Advance Payment for
purposes other than toward delivery of the Goods.

It is a condition for any claim and payment under this Guarantee to be made that the
Advance Payment referred to above must have been received by the Supplier in its
account [insert number and domicile of the account]

This Guarantee shall remain valid and in full effect from the date of the Advance Payment
received by the Supplier under the Contract until [insert date4]. We agree to an extension
of this Guarantee for a period as required by the procuring agency in response to the
Procuring agency’s written request for such extension, such request to be presented to us
before the expiry of the Guarantee.

[Signature(s) of authorized representative(s) of the bank]

4Insert the Delivery date stipulated in the Contract Delivery Schedule. The Procuring agency should note that in the event of an extension of the time to perform the Contract, the
Procuring agency would need to request an extension of this Guarantee from the bank. Such request must be in writing and must be made prior to the expiration date established in
the Guarantee

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 10. Supply Order for the Supply of Goods

[Procuring agency to use normal Letter Head format]

Supply Order No: Supply Order Date:

From: Contact person,

[name and address of Procuring Agency] Telephone Number
Fax Number
e-mail address

To: [Contact person, Telephone Number

[name and address of the Supplier] Fax Number
e-mail address supplier reference]

Delivery date: Order Value (Nu.):

Delivery terms:

We agree to an extension of this Guarantee for a period a period as required by the

procuring agency.

The [insert name of Procuring Agency] has accepted your Quotation dated [insert date] for
the supply of Goods as listed below and request you to supply the goods within the
delivery date stated above, in the quantities and units and on these Terms and Conditions.
For convenience a copy of your signed quotation is attached.

ORDER ITEMS
Item No Description Supplier Ref Unit Price Qty Total Price

In acceptance of this Supply Order you are requested to sign below, at which time the
Contract shall become legally binding upon both parties. You are also requested to confirm
that you will be supplying the goods within the Delivery date mentioned above.

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 For the Procuring agency:

For the Supplier:

Signature Signature
Print Name Print Name
Designation Designation
Date Date

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