alternative procurement

7/28/2019 Alternative Procurement

1/18


2/18

Titles Sealed Quotation

Direct Purchase

Users Committee

Force account

NGOs

Training /Designs specialties

Repairs

Rent Service Contract

Consultant Qualification Selection (CQS)

2July 19, 2013 PMAN- by BN Dahal


3/18

Some Complex Procurements

SOP 58 has some examples where PPA or PPR

either has no answer or is impracticable.

Schedule 3 (Types of Goods Contract), Schedule

4 (Works Contract) and Schedule 5 (Service

Contracts) have no procedures in PPA/PPR.

Trading Items cannot be purchased based on

PPA/PPR.

Reverse auction is not accompanied by PPA.



4/18

General Process- Same as Bid


Plan

ning

Estima

tion

Notice Openin

g

Evaluation Award

Sealed quotation

PPR97

a a a a a a

Direct Purchase a a ra r a a

Users Committee a a a (or

by)

r Fixed a

Force Account a a r r r r


5/18

Sealed Quotation

Ceiling- Rs. 1m (goods) , 2m works at estimated

cost (Estimation means Total estimation)

Slices, package or unit rate- allowed

Frame Work contract practiced by some entity.

Notice period-15 days,

Validity - 45 days , Bank Guarantee - 75 days

SBD of PPMO; cost Rs. 300,

If otherwise stated in PPA40/PP84 mutatis

mutandisas BID.



6/18

Sealed Quotation

If less than 3, further notice without saying RE-

Validity? Modification? Withdrawal? Opening?

No modification, withdrawal-First tier-offer(?)

(game theory)

Public Opening- same formalities as bid.

Evaluationsimilar as bid.

Awards within 7 days with PerformanceGuarantee 5%.



7/18

Direct Purchase- Minor purchase

Restrictions:

If goods in stock, no direct purchase (PPR86)

Agreement is not required (?)

Annual restriction-

Rs. 3 lakh for goods, Rs. 3 lakh for other service; Rs. 5

lakh for works

Single Party Obligor - no twice within above limit.

Written quotation to be obtained from at lease 3

suppliers if Estimate (AND/OR contract) is >50K.

No retention, no bank guarantee.



8/18

Direct Purchase- Domestic Production

If produced in Nepal by many producers

direct from producer to the extent of Rs. 1.5 m.

Dealer and retail price published.

PE is treated as a dealer.

Single purchase within a year. PPMO may test the

price (ultraviolet comparing to PPA65(2)

If produced in Nepal by only one producer

direct from producer to any requirement

Dealer and retail price published.

PE is treated as a dealer. 8July 19, 2013 PMAN- by BN Dahal


9/18

Direct Purchase- Single supplier

Technical skill or competency with single

supplier (foreign or domestic).

Single supplier (proprietary goods or unique

service provider) around reasonable situation.

Compatibility of existing facility (Proprietary

goods)- to 30% of original cost.

Public notice required for three above.

Attachable with main (VO)- higher approval.

Written offer to be obtain

Negotiation required. 9July 19, 2013 PMAN- by BN Dahal


10/18

Direct Purchase- Critical points

Practical ambiguity of minor limit- per case or

total for each year?

If budget availed? If unexpected required?

Definition of proprietary goods/unique service.



11/18

Direct Purchase- Design

Regular architectural designs, urban plan

TOR to be prepared and design competition

may be done. Only won participant is paying

party.

PPR87



12/18

Direct Purchase- Training and CQS

Training, seminar, workshop

Direct negotiation to the extent of Rs. 100,000,

required higher approval for above amount.

PPR82

Selection Based on Consultants Qualifications

(CQS)- PPR83

Regular, small value, small timing but high skillrequirement.

Only few consultant available in the market

For competitive, takes much time.12July 19, 2013 PMAN- by BN Dahal


13/18

Consumer Committee

Cost reimbursable method applied (PPR97)

Limit upto cost estimate of Rs. 6 million in total.

Work and associated service only. After completion

works to be transferred to UC and repair by UC

fund only.

Notice publication or offer from UC.

Agreement by both party

Advance (1/3rd) and settlement for next advance.

All bills to be publicly audited and submitted to PE.

Man work only.13July 19, 2013 PMAN- by BN Dahal


14/18

Force Account

Small works in scattered places, where bidder

may not be interested.

Goods from PE and direct-labor

Single force account less than Rs. 100,000

(slicing permissible).

Always higher approval required.

PPR98



15/18

NGO

PPA46/PPR99

Public awareness training, main-streaming,

strengthening activities

Based on NGO objectives (listed in standing list)

15 days notice for RFP; public opening and

evaluation (same as bid)

Lowest evaluated substantially responsive offer. No Bank guaranatee (bidding or performance)



16/18

Other

Service Contract (PPR95)

Per case service contract

Upto Rs. 100,000- direct negotiation

Above 15days notice (national- valley, regional and

notice board- other places)

No Bank guarantee

If performance is not good, correction notice then

termination.



17/18

Othercont.

Repair and Maintenance

Cost estimate required each case. If in own

workshop approval may done based on job-card.

Own workshop or outsider.

Replacement of goods worth more than Rs. 5000.

House/Land Rent (PPR94)

Based on Rent Committee

Renew possible



18/18

Common elements

Planning as usual (except minor purchases).

Estimation approval as usual (workshop repair

may be after repair based on job-card).

Notice in most case or letter or post-purchase

public notice.

Most cases, agreement required

Contract management is similar.


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