procurement manual sup0209

7/31/2019 Procurement Manual Sup0209

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Tab le o f Con t en t s

Introduction...P.3

Chapter-1RESPONSI BI LI TI ES OF PROCUREMENT DI VI SI ON .P.4

Chapter-2PROCUREMENT TYPES...P.6

Chapter-3PROCUREMENT PROCEDURE.........................P.9

Chapter-4

REGI STRATI ON OF FI RMS.....P.14

Chapter-5TENDER ENQUI RY..P.16

Chapter-6OPENI NG OF TEND ER..P.18

Chapter-7LOCAL PROCUREMENT...P.22

Chapter-8TI ME SCHEDULE FOR PROCUREMENT PROCESS..P.2 6

Chapter-9REGI STRATI ON FORM ......... ...... ....P.2 8

Chapter-10WEB BASED PROCUREMENT.....P.33

Chapter-11LI ST OF ANNEXES...P.35

Chapter-12PPRA RULES 2 0 0 4 ..P.74


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Pakistan Space & Upper Atmosphere

Research Commission Procurement Division __________________________________________________________________________________

I N T R O D U C T I O N

1. Procurement is a term that describes activity directed towards securingrequired machinery, equipment, spares and materials. In a broader sense,

procurement means purchase of right type of item, in the right quantity, at theright price, for the right person and at the right time.

2. SUPARCO is an independent organization meeting its requirements ofmachinery, equipment, spares and materials etc. by effecting procurement fromabroad or through indigenous sources in accordance with the procurementprocedures generally followed by DP Div., Ministry of Defence.

3. This Policy has been formulated in order to streamline procedures forprocurement through foreign exchange as well as in local currency, having thefollowing advantages:

a. Uniformity of procedures.b. Decentralized processing to avoid unnecessary delay.c. Optimum utilization of funds.d. Availability of data for planning/budgeting.e. Transparency and fairness of procedures.f. Control over registered firms.


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CHAPTER-1

RESPONSI BI LI TI ES OF PROCUREMENT DI VI SI ON

Procurement Division is responsible for decentralized procurement of machinery,vehicles, equipment and materials for use in SUPARCO through Director/GM(Procurement). For smooth and efficient functioning, Procurement Division willensure strict compliance of procedures outlined in this Policy.

FUNCTI ONS

1. Functions of Procurement Division are as under:

a. Sourcing of stores locally and from abroad through all means ofcommunication e.g. internet, fax, telephone, market survey etc.

b. Registration of firms through WEB_ based Procurement.

c. Procurement of all stores including workshop equipment, heavymachinery/plants, communication equipment, computers, photocopiers,vehicles and production material.

d. Correspondence with firms on whom contracts have been placed byProcurement Division.

e. Liaison with Finance Division for opening of Letters of Credit for importContracts.

f. Monitoring of receipt and inspection of contracted stores.

g. Close coordination with EmbarkationHQ at Karachi for clearance ofimported stores through Embarkation HQ.

h. Monitoring of Contracts including delivery schedules, Bank Guarantees,Performance Guarantees and liquidated damages etc.

OBJECTI VE OF PROCUREMENT

2. Objective of procurement is to ensure:

a. Stipulated quality.b. Correct quantity.c. Lowest price for the stipulated quantity/quality.d. Right source.e. Timely delivery at the required place.


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GUI DI NG PRI NCI PLES FOR PROCUREMENT

3. Guiding principles are as follows:

a. Speedy procurement at economical cost.

b. Conformity with the relevant specifications.

c. Encouragement to the local industry with a view to promotingindigenous production/development.

d. Price preference to indigenous manufacturers within the guidelines ofpolicy/instructions issued by the Government without compromisingproject requirement and schedules.

e. Acceptance of offer on lowest bid basis provided technicallyacceptable.

f. Procurement through second lowest bidder in case of refusal of the firstlowest technically acceptable bidder.

g. Procurement from abroad preferably through local agent, if sole agencyand back up support arrangements are available.

h. Direct procurement from OEMs abroad in the interest of organization.

PROCUREMENT SOURCES

4. Procurement sources are classified under following heads:-

a. Fore ign Procurem ent Source. If the OEM (Original EquipmentManufacturer) of the stores is located outside Pakistan, the source will beforeign, whether the supplier is located within Pakistan or abroad.

b. Loca l Procurem ent Source. If the OEM of the stores is located withinPakistan, or the imported foreign item is available in the local market, theProcurement Sourcewill be assigned as local.

Cont


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CHAPTER-2

PROCUREMENT TYPES

5 . Following are the main Types of Procurement:-

a. Spot Pur chase. When there is some emergency of the requirementof stores, such type of purchases may be resorted to. However, spotpurchases will be done through a pre-designated purchase committee.The committee will comprise at least three members representing user /technical, Stores and Finance Division along with one representativefrom security staff. A recoupable imprest account will be maintained forthe purpose of such purchases. The ceiling of this account will bedetermined by the commission/chairman. Necessary funds for thepurpose of such purchases will be drawn in advance, from the controllingauthority by the Purchase Committee.

b. Pur chase th oug h Cred i t Card . The complete procedure is given atANNEX R.

c. Rate Runn ing Cont rac t ( RRC) . It is an expeditious and economic way ofprocurement of stores which are required repeatedly. Preferably, this type ocontract will be established with the OEM, or with his sole agent. Normalvalidity period of RRCs will be 12 months. If the requirement of the userhowever persists beyond the validity period, a fresh competition throughopen/limited invitation to tenders should be arranged well before thetermination of the previous contract, so that smooth supply is ensured for thuser. Following are the guidelines:-

(1) The Procurement Division will itself evaluate the repeatedrequirements or process them on the request of the user on the basof statistical data of demands processed within past one year (or atleast one quarter). Stocking Authority/User will calculate the level ostocks required to be maintained for all items and effort will be madto place the demand keeping in view the suppliers lead time. Toeliminate middlemen, the user will make efforts to identifyProcurement Division about the original sources, if possible.

(2) The Procurement Division will invite offers from the possible supplieand basing on quality and economic considerations, will accordinglyconclude the RRC with the appropriate firm.

(3) Issue of ITs, preparation of CSTs and Purchase Proposals will be asper the standard procedure.

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(4) Copies of the finalized RRCs containing all possible terms/conditionswill be distributed as under:-

(a) Supplier for delivery of stores.

(b) Finance Division.

(c) User Divisions.

(d) Central Stores/Stocking Authority.

(e) On net along with the catalogue of Stores of Supplier.

(f) Office copy.

(5) Once the RRC is established and subsequently the user desires toprocure such stores, he will select RRC in the Procurement TypeBox in the demand proforma. He will also enter the required quantiRRC reference number and its date be mentioned in the Remarks

Column. Moreover, he will make a record of total amount of thatdemand in the Budget Commitment Register, accordingly.

(6) As soon as Procurement Division receives the demand, they willimmediately place Purchase Order on the relevant firm for theordered quantity asking them to deliver the stores to theCentral/Transit Stores along with the bill for the demanded store.

(7) On receipt of the stores, the Stores Division will immediately invitethe user/QA&MR for inspection. If the stores qualify the inspectioncriteria, they will take the items on their charge and issue them tothe user, as per procedure.

(8) The Stores Division will subsequently forward the standarddocuments (as per the check list), to the Procurement Division withtwo days of the qualification of stores in the inspection.

(9) The Procurement Division will not take more than two days inforwarding the Model OM to the Finance Division.

(10) The Finance Division will not take more than 5 days in releasingcheque to the supplier after receipt of Model OM from theProcurement Division.

a. Repeat Order . Subsequent to the successful execution of an order, if auser further requires an additional quantity of the same store, he may initiatthis type of demand. In that case, he will select single, in the ProcurementMode Box. He will also give reference of the previous demand number in theRemarks Column.

b. N orm a l Procu rem en t . All other types of procurement less mentioned atpara a through d above, will fall under this category.

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PROCUREMENT M ODES

6. There will be following modes for invitation to tenders:-

a. Open Tender s. The Open Tenders will be invited from the local as wellas foreign sources, on WEB Site/newspaper only if the value of the storesRs.40, 000 or more.

b. L im i ted Tenders . WEB_based Reg is te red f i rm s will be invited forLimited tendering for which the above mentioned firms will be enteredon W eb_ Sit e of SUPARCOhttp://www.suparco.gov.pk at the windowof Procurement Division. Using their login & Password, they will accessto find our limited Tenders placed if any..

When open tender inquiry is not considered feasible due to financial ceilinsecurity consideration, time constraint or limited resources of supply

available. For inviting limited tenders, a panel of approved suppliers shallbe maintained by the Procurement Division for each broad category ofmachinery, equipment and stores.

c. Sing le/ Prop r i e ta r y / N egot i a ted Tende r. In cases of specialprocurement situations like solitary proprietary of OEM or his sole distributsuch types of purchases may be resorted to. However, recording of thereason for resorting to this type of procurement, is mandatory. These typeof tenders may be invited for the purchase of all sorts of stores likemachinery, scientific equipment, consumable/non-consumable stores etc.

Indication of the procurement mode, by the user is mandatory.

7. Hi re / Purchase o f Techno logy , Tra in ing , Purchase o f Com put e r So f t w areet c. Formal MOUs and contracts may be formulated with appropriatefirms/agencies for acquiring specific technologies, making arrangement to impatraining to SUPARCO employees or purchase of proprietary computer softwareetc. As these are special cases where the nature of requirement may vary fromone another, prior approval of the Chairman will be sought in every case. TheBudget Controlling Authority will indicate the specific provision and availability ofunds in the already allocated budget for the information of the Chairman. The

proposal should be routed through concerned Financial Officer.

Contd
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CHAPTER-3

PROCUREMENT PROCEDURE

8. Def in i t i ons .

a. Cont ro l l i ng Au thor i t y . The officials responsible to control the respectivbudgets, will be known as Controlling Authorities who will be answerable the Chairman through Member/Director for the effective utilization of theallocated budget.

b. Recom m end ing Au tho r i t y . In case the expected expenditure in certainprocurement action is more than the specified ceiling (in the Delegation Financial Powers) for the Controlling Authority, he will then act as theRecommending Authority of the demand which will be forwarded to thenext higher authority to obtain his approval.

c. Approv ing Au tho r i t y . In case, however, the expected expenditureincurred on a procurement action is within the specified ceiling of theControlling Authority (as per the Delegation of Financial Powers), he willhimself be the Approving Authority for that demand.

9. Procedure.

a. At the commencement of each Financial Year, the allocated budget ofSUPARCO will be re-appropriated to all the Wings, Directorates and Divisioetc to undertake projects and for normal procurement activities.

b. The allowable ceilings of the expenditures will be indicated in the Delegatioof Financial Powers.

c. When a need of certain item arises, the initiator will initiate demand througcomputer software on a revised format given at ANNEX-C. Followingprocedure will be adopted:-

(1) As soon as the initiator of the demand commences filling in the detailsthe users Wing/Directorate and Division/Group will be automaticallyentered in the Form.

(2) Then the initiator will select the Category and Sub-category throughmother-child drop-down boxes. The initiator will then complete theform with other essential details, like Control Code, Budget Head,required quantity etc.

(3) After completion of the form on his part, the initiator will forward thecomputer generated demand to the concerned Head of the Division/Section/Group.

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(4) The Head of Division/Section/Group will suggest the ProcurementSource, Type, Mode and sensitivity (classified / unclassified) and referthe demand to the Controlling Authority.

(5) The Controlling Authority will decide to maintain or amend theProcurement Source, Type, Mode and sensitivity.

(6) Then the Controlling Authority will exercise one out of the threefollowing available options:-

(a) If sufficient stock is available with the Stocking Authority, he mayorder to release complete or partial quantity of the stores issuedform the available stock. He will mark stock, if desires to selectthis option. On doing that, the demand will route to the StockingAuthority with an executive instruction from the ControllingAuthority:

Issue ____ quantity from the available stock.

(b) In case, the Controlling Authority decides to procure the storesthrough Spot Purchase, he will mark spot. By doing that, thedemand will route to the Central Stores for their procurement actithrough Spot Purchase.

(c) In case, however, the Controlling Authority desires the procuremethrough any type other than specified at paragraph 13 c (6) (a) an(b), above, he will mark proc. The Controlling Authority will furth

decide about the procurement process whether it is through CrediCard, Rate Running Contract, Repeat Order or Normal.

(d) In case the Controlling Authority desires the procurement throughCredit Card, he will mark CC and forward the same for theapproval of Competent Authority. After approval for purchasethrough CC, the demand will route back to the user/initiator forprocurement action described at Annex-T

Note: I n case, the concerned in-charge selects Credit Card, ongoing RRC o

Repeat Order, he should select single/pr oprietary for t he ProcuremeSource and he w ill also essentially indicate t he source of supply in t h

Remarks Colum n.

(e) Once the demand is electronically received in Procurement Divisiothe DH (Proc) will mark it to the concerned Dealing Officer.

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(f) As soon as the Dealing Officer receives the hard copy of thedemand duly signed/stamped by the Approving Authority, he wopen a file and start the procurement process as under:-

(1) He will fetch the names of suppliers (of the relevant field of business)

from the data bank and will issue Tender Inquiries to theregistered/suggested (by the initiator) suppliers asking them to submitheir technical as well as financial offers (in two separate envelopes dumarked), by a specified date (for foreign procurement cases, the timegiven to the suppliers for submission of their offers is 3 weeks, while folocal procurement cases, it is 2 weeks).

(2) In case no response at all or less than minimum required number ofoffers is received from the suppliers, reminder is issued to them andadditional one week is given to them for the response. If still no positivresponse is received, the matter is informed to the user Division tosuggest further action.

(3) However, in case, more than the minimum limit (three) of offers arereceived, the technical offers will be sent to the user along with TSF(Technical Scrutiny Form). The TSR (Technical Scrutiny Report) will brecorded on the TSF and returned to the Procurement Division withinmaximum three days.

(4) The technical scrutiny will be carried out by an Evaluation Committee(comprising of technical representatives from user side). The committe

will endorse their recommendations on Tech Scrutiny Form [Reproduceat ANN EX S] (which will be signed/stamped by the head of theCommittee).

(5) Procurement Division will open the technical offers on pre-announceddates. However, the financial offers will only be opened on receipt oftechnical offers duly scrutinized and accepted by the user. Financialoffers of technically rejected offers will not be opened at any cost by thProcurement Div. the sealed envelopes of technically rejected offers wbe forwarded to Dir (Tech Coord) office for its cancellation and onward

forwarding to the supplier. The representatives of the firm will beallowed to attend both the Tender Opening.

(6) Subsequently, CST (comparative statement) as per ANNEX D (I or II)will be prepared and basing on that, PP (Purchase Proposal) will be mad

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(7) Fair PP will be circulated to the relevant offices for concurrence/approval of the proposal for the following:

(a) Vetting of technical specifications by the maintaining authorityif applicable.

(b) Physical Budget Commitment by Budget Controlling Authority(c)Recommendations by the head of user Div.(d) Financial concurrence by Finance Division.(e) Approval by Competent Financial Authority.

This copy of the proposal will contain original signatures and stamps of thabove mentioned authorities.

(8) As soon as the PP is approved, PO (Purchase Order) is issued to the firmindicating specific delivery date/conditions. Any delay in delivery may bliable to impose LD (Liquidated Damages), or purchase through Risk &Cost of the original supplier. The PO will contain all the terms/conditionof the contract between SUPARCO (Purchaser) and the Supplier (Seller)Two copies of the PO will be forwarded to the seller with the request toreturn one copy duly signed/stamped showing his acceptance of theterms/conditions of the contract.

(9) As soon as the accepted copy of the PO is received back from theseller/supplier/agent, copies of the POs are issued to the user, FinanceDivision and Stores Division, for their record.

Note: While making contracts for procurement of such m achinery/ equipment t hatsubsequently need periodic m aintenance, concerned officers in charges

responsible for the maintenance of the m achinery should always beconsulted for inclusion of r elevant m aintenance clauses in t he contract.

d. The concerned Dealing Officer will closely monitor the delivery of thestores. In case, of non-receipt of stores 7 days before the target deliverydate, the Dealing Officer will issue a letter to the firm, reminding themabout the delivery schedule and expected imposition of the LD (Liquidated

Damages) in case of non-compliance by the target delivery date. Ifhowever, the Dealing Officer does not receive information about thedelivery of stores till the target delivery date, he will issue another letter the firm, forcing them to comply the delivery without further delay andprocess the case for imposition of decided LD. Meanwhile, the DealingOfficer will keep on stressing the supplier to fulfill his contractualobligations. However, if three LDs are imposed and still the supplier fails tdeliver the stores, the stores will be procured through some alternatesupplier or open market at the Risk and Cost of the original supplier. In

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procurement cases of special items, deviation from procedure may beadopted after consulting concerned member/Chairman.

e. The receipt of store (partial or complete quantity) will be immediatelyentered in the software by the Transit/Central Stores, on occurrence.

f. Once the stores are received by the Transit Stores, they will invite theuser/QA&MR Div. to carry out its inspection immediately under intimationto Procurement Division.

g. As soon as the store qualifies the inspection criteria, the Store Division wtake it on their charge and Procurement Division will be informed about italong with the following documents:-

(1) Delivery Challan duly endorsed by Security Staff.

(2) Inspection Note (legible copy) duly signed and stamped by the

inspector.

(3) Copy of CRV.

(4) Bill duly endorsed.

h. Procurement Division will then forward Model OM to the Finance Divisionalong with the requisite documents with the request to release payment tthe firm along with earnest money and the agency commission, as the camay be.

i. The Finance Division will forward cheque to the firm through TCS underintimation to Procurement Division.

j. The Procurement Division will then close the case on receipt of intimationrelease of payment through Finance Division.

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CHAPTER-4

REGI STRATI ON OF FI RMS

10. Following procedure will be adopted for the registration of firms:-

1. The desirous firms may go to the W eb_ Site of SUPARCOhttp://www.suparco.gov.pk at the window of Procurement Division, adownload the Registration form.

2. They will make payment ofa Web based Vendor Entry Fee (Non-refundable) Rs. 500/- in form of pay order/demand draft in favour of HQSUPARCO, Karachi.

3. However, New Suppliers are also required to submit an amount of Rs. 5000on account of Security Deposit (Refundable on termination of Registration)

4. The firm will re-submit the form duly filled in, along with pay order/demanddraft of Rs. 5,000/- (refundable security deposit) in favour of HQ SUPARCOThe said Registration Performa, Secrecy form along with required documenare required to be sent through courier at SUPARCO HQs address by Registered as well as New Suppliers those are intended to be registered wSUPARCO.

5. Once security formalities are completed the firm will be formally registered(initially for a period of 3 years, however, extendable) and allotted properregistration number. The firm will be accordingly informed by the fastestpossible means.

6. Before 3 months of the termination of registration period, ProcurementDivision will inform the firm about the expiry of its registration period. Thefirm will also be provided option to apply for renewal of registration, if they sdesire.

7. In case, the proprietor of any firm desires to de-register his firm, he may dso by just rendering an application addressed to GM (Procurement) for theneedful. GM (Procurement) will arrange release his security deposit (Rs.

5,000/-) through the Finance Division and send information to the firm for dregistration.

11 .Black -L is t ing o f th e Fi rm s. In case a firm fails in any one or more of thefollowing areas, it may be blacklisted with the prior approval of Chairman,SUPARCO:-

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CHAPTER-5

TENDER I NQUI RI ES

12 . The Open Tenders

k. WEB_based Reg iste red f i rm s will be invited for Limited tenderingfor which the above mentioned firms will be entered on W eb_Si te o fSUPARCOhttp://www.suparco.gov.pk at the window of ProcurementDivision using their login & Password and there will find our limitedTenders placed if any..

l. When open tender inquiry is not considered feasible due to financial ceilinsecurity consideration, time constraint or limited resources of supplyavailable. For inviting limited tenders, a panel of approved suppliers shall bmaintained by the Procurement Division for each broad category of

machinery, equipment and stores.

Open Tender inquiries will be issued by advertisement in the press as well as on oW eb_ Site of SUPARCOhttp://www.suparco.gov.pk.,if the value of the stores isRs.40, 000 or more. ITs may be download from the website and offers will besubmitted through mail/TCS and will be collected in the Tender Box till 1300 hrs on thlast date of receipt of I.Ts. Technical and Financial offers will be opened at 1430 hrs the Tender Opening Date.

13. Earn est Money

Web Based Registered Suppliers are needed to opt any one of the fol option wregards to submission of Earnest Money (E/M).

Opt ion A:

Web Based Registered Suppliers can deposit an amount of Rs. 100,000/- wSUPARCO on account of Consolidated Earnest Money/Bid Bond (refundawithout interest on termination of the Registration) for participating in evetender of SUPARCO through electronic WEB_based Procurement withosubmission of Earnest Money (E/M) as well as for Press Tenders. However, 2

E/M has to be deposited against each Contract after successful award.

Opt ion B:

Web Based Registered Suppliers who does not opt an Option A have to subm2% E/M against each Tender, if desire to participate. However, failure submission of E/M against three tenders will leads to with holding of Registratias well as forfeiture of Security deposit.
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CHAPTER-6

OPENI NG OF TEND ERS

20. Tender Box will be opened in presence of the following Board of Officers:-

a. DH (Procurement)b. Concerned Manager/AM (Procurement)c. DAO (Procurement)d. Procurement Dealing Officere. Representative from Finance Divisionf. Representative from Security Division

21. Technical Scrutiny

a. The Offers will be opened by the Board of officers in presence of the

representatives of the firms if they so desire. The technical offers willbe forwarded to the Div/Sec/GP Heads of the user along with the TSF(Technical Scrutiny Form), the same day. Financial officers will not beopened along with technical offers. These will be opened later afterthe receipt of technical offers duly scrutinized by the user.

b. Whenever any tech offer is rejected by the user, he is bound torecord cogent reasons (s) for the rejection. On receipt of the TSR,the Proc Div will immediately communicate the exact reason (s) ofrejection of the officer (s) to the relevant supplier (s), in writing.Subsequently, the respective supplier will be allowed to launch hisrepresentation within clear 10 days against the objection (s), (ifany). The Purchase Proposal will only be forwarded for approval oncethis essential phase is over, in the light of PPRA Rule-35.

I m po r t Cases

22. In import cases the following procedure will be adhered to:

Award of Contract:

a. After signing of Contract by Supplier and Purchaser, a copy of theContract as per ANNEX-F ( fo rw arded t o concerned sec t ions on ly ) or ANNEX-G ( fo rw arded t o concerned sect ion s on ly ) , will beforwarded to Finance Division for opening of L/C. Wherever specialconditions like training, installation, commissioning and PerformanceBond are involved, Contract as per ANNEX-F should be entered into.However, for normal supplies Contract as per ANNEX-G should beissued. A copy each of the Contract would also be forwarded toconcerned Stocking Authority/user Division and Central Stores as

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advance information. In some cases Conformance Certificate fromoriginal manufacturer may also be requested.

Performance Guarantee

b. Supplier will submit a performance guarantee for not less than 10% (tobe decided by the CFA) of the contracted value, depending upon natureof store/contract and its value, which will be valid for a period of sixmonths after the date of delivery of stores at site or commissioning ofequipment, whichever is later. This may be dispensed with for itemslike spares and components, which have been accepted by the Board ofOfficers detailed for the purpose.

Opening of L/C

c. Two copies of Contract (one for bank & one for record) along with

stipulation will be sent to Finance Division for opening of LC in favour ofthe concerned suppliers through the designated bank within 03 days.

d. The L/C opening bank will be advised to obtain confirmation and date ofdelivery of original L/C to the beneficiary/suppliers from the advisingbank and place it on the concerned import file for record.

Shipping Documents

e. Negotiable shipping documents as detailed below will be presented bythe Supplier to the bankers soon after shipment so as to reach thisCommission before arrival of the vessel. In case of air-shipmentnegotiable shipping documents should be submitted to the bankers soonafter the consignment is dispatched, under intimation to thisCommission. Eight copies of the invoice and eight copies of packing listduly signed will also be dispatched to this Commission well in advance ofshipment:

(1) Manually signed Draft showing FOB/C&F Karachi value of theitems actually shipped.

(2) Eight copies of manually signed invoice for the correspondingamount.

(3) Eight copies of packing list.

(4) Original and two copies of duly signed Airway Bill/Bill ofLading/Courier Receipt indicating actual freight paid/to be paid.

(5) Copy of shipment declaration sent to N.I.C.L.

(6) Guarantee Certificate that correct goods as per Contract havebeen dispatched.

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(7) Original Warranty/Guarantee/Test Certificate.

Inspection of Stores

f. On receipt of consignment Central Stores will inform the StockingAuthority/user immediately through Inspection Note. Inspection ofstores may be carried out in the presence of firms representative,where necessary, by a Board of Officers detailed for the purpose. TheBoard will consist of the following:

(1) GM/DGM of concerned Stocking Authority - President(2) Manager (QA&MR), if necessary - Member(3) Manager of concerned user Division - Member(4) Representative from Central Stores - In attendance

g. On completion of inspection, Board Proceedings will be prepared. This

entire process should be completed within 5 days. In case of anydiscrepancy, firms representative will be shown the stores andcertificate regarding the shortcomings will also be signed by him, wherenecessary and kept in record. Where necessary representative fromNational Insurance Company Limited will also be called at the time ofchecking of stores. In case of inspection of raw materials, components,subsystems procured for project work, the inspection will be carried outby QA&MR Division who on successful completion of inspection will issuea Material Acceptance Certificate as per sample at ANNEX-H .

Clearance of CRV (Certificate Receipt Voucher)

h. CRVs will be forwarded to Procurement Div. within 02 days from receiptof acceptance of stores by the Inspection Board. A specimen of CRV isplaced at ANNEX-I .

Payment to Firm

j. Payment will be arranged/made as per the clauses of the Contract.Advance payment, if required, will be allowed with the approval of the

C.F.A. Finance and Procurement Divisions will ensure payment ofagency commission and/or refund of earnest money within 7 days ofreceipt of C.R.V.

Payment to Insurers

k. All consignments will be got insured through M/s. National InsuranceCompany Limited (NICL), Karachi against all risks from the Suppliers

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warehouse to SUPARCOs warehouse. M/s. NICL will issue Debit Notefor payment of insurance premium which will be paid in Pak Rupeethrough Finance Division. Model O.M., Debit Note duly certified for itscorrectness and O.M. conveying sanction of the Competent Authority willbe forwarded to the concerned A.M.(Audit) for its settlement/payment,which will be made within 07 days.

Em ergen t P rocurem ent By I nd iv idu a l Dur in g Tra in ing Or V isi t Abroad

23 In case of emergent requirement of critical items for project work, whichare not readily available in the country or cannot be imported in the name ofSUPARCO, an individual officer of SUPARCO may purchase the same with priorapproval of Chairman through Internet and/or Credit Card during his training orvisit abroad. In this case the item may be purchased in his own name and allexpenses incurred by him in foreign exchange as well as in local currency onpayment of Custom dues etc. will be reimbursed to him on submission of invoice

and other relevant documents. Maximum limit for such cases will be US$ 1,000/-or equivalent amount in any other foreign currency. Claim for suchreimbursement along with sanction of Chairman of actual expenditure will besubmitted directly to Finance Division for reimbursement. The procedure is givenbelow:-

a. The individual will seek the approval of Chairman in writing or in case ofemergency on telephone giving full details like, cost, non-availability inPakistan and the need for the purchase.

b. If additional funds are required, either Finance Division will arrange orthe individual will make the payment from own resources which will bereimbursed to him later.

c. Any small items will be booked as personal baggage and Customclearance will be arranged by the individual.

d. The items will be deposited in the concerned Central Store for arrangingtheir inspection and issuance of CRV.

e. For reimbursement/adjustment of the funds, the individual will provide

the following documents to Finance Division:

(1) Invoice.(2) Receipt for dues paid on account of Customs/freight etc.(3) C.R.V.

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CHAPTER-7

LOCAL PROCUREMENT

24. In case of local procurement the following procedure will be adhered to:

I ssue o f Purchase Order

a. In case of local purchase after final approval of competent authority,Purchase Order, as per specimen at ANNEX-J ( fo rw arded toconcerned sect i ons on ly ) , will be placed on the supplier byProcurement Division. A copy of the same will be forwarded each toStocking Authority/user, Central Stores and Finance Division as advanceinformation. Sample of the items required to be purchased, will be gotapproved from the Stocking Authority/user before bulk supply by thefirm/supplier, where necessary. The approved sample will be kept in

safe custody by the Stocking Authority/ user. In some cases,Conformance Certificate from original manufacturer may also berequested from the suppliers.

Receip t o f S tor es

b. Central Stores will receive store as per Purchase Order or Contract fromthe supplier. Five copies of Delivery Challan will be prepared by thesupplier. Distribution of different copies of Delivery Challan will be asunder:

(1) 1x copy will be handed over to Security staff at Gate.

(2) 4x copies will accompany the stores to Central Stores. CentralStores will return 1x copy duly signed to the supplier and will forward2x copies to Procurement Division.

I nspect ion o f Sto r es

c) Inspection of Stores will be carried out in the light of the followingprocedure:

Non-Technical Stores

(1) In case of Non-technical Stores, Central Stores will inform theStocking Authority/user about the receipt of their stores throughInspection Note.

(2) This inspection should be done by user up to Rs. 1 M. In caseof conflict, QA&MRs representative or Senior Officer of QA&MR & userwill finalise inspection.

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a. Non-Technical Store within 2 days.b . Technical Stores within 3 days.

Payment

(8) On receipt of CRV from Central Stores, case for release ofpayment will be prepared and sent to Finance Division. FinanceDivision will prepare the cheque and forward the same within 7 daysto the respective supplier through courier. Charges for the courierservices may be deducted from the bill amount.

(9) As a general rule, part payments against partial supplies willnot be made unless specifically mentioned in the formalContract/Purchase Order. However, in case where this provision issubsequently made, it will require acceptance of the StockingAuthority/user and clearance of Finance Division. Such case will

invariably be put up for Chairmans approval.

(10)Only 90% value of partially delivered items will be paid and 10%will be released after final/complete delivery of goods.

LI QUI DATED DAMAGES (L / D)

25. All deliveries must be completed by the specified date. If failure to deliverthe stores within the scheduled time has arisen from Force Majeure, which thepurchaser (CFA) may admit as reasonable, he will allow such additional time ashe may consider to have been required by the circumstances of the case.Otherwise, he will be entitled, at his discretion, to cancel the Contract, and/orclaim liquidated damages @ 2% of the total Contract price of the items permonth or part thereof beyond the specified delivery date, during which these maynot be delivered or to purchase from elsewhere, the unsupplied stores at the riskand cost of the supplier.

26. In case of force majeure, however, extension in delivery period (with orwithout imposition of LD), can be granted. The powers to grant such extensionswill be as under:-

a. Chairman - More than 90 Days

b. Concerned Member/Director - 90 Days or less.

c. DH (Procurement) - 28 Days or less.


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CHAPTER-8

TI ME SCHEDULE FOR PROCUREMENT PROCESS

28. After adhering to required/mandatory actions for procurement process the followideal time schedule can be taken as a general guide line/likely schedule. However,maximumeffort will be made to finalize procurement cases in the shortest possible time in ordeto ensurespeedy receipt of stores by the user:

Import FOR

a. Issuance of Tender Inquiry 3 3 daysOR

Issuance of Press Tender 15 15

b. Submission of Quotations 30 21 c. Technical Scrutiny of Quotations 7 7 d. Preparation of CST 2 2 e. Preparation of PP/ Contract 1 1 f. Approval of PP/ Contract 3 3 g. Opening of L/C 3 - h. Delivery of stores As per delivery schedule

(Flexible, case to case basis)Issue of I/Note (for acceptable store) 3 3

(This time may be more, in case of rejections)k. Despatch of CRV etc 2 2

l. Preparation/submission of claim toFinance Division 2 2

m. Release of payment/Earnest Money 7 7

Total for limited tender: 63 + 51 +

OR

Total for press tender: 75 + 63 +

REPORTS & RETURNS/ DATA BASE

29. All reports and returns will be generated with the help of data beingcollected. These reports will be generated on daily/weekly/monthly/yearly basisas required. The following are the main reports and returns to be generated:

a. Detail of Demands received from Stocking Authority/User Divisions/Sections.

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b. Detail of quotations received.

c. Detail of demands pending/materialized.

d. Detail of purchase orders issued/pending/materialized.

e. Detail of Spot Purchase.

f. Summary of monthly proc. expenditure.

g. Detail of stores received at relevant Store.

h. Detail of pending CRVs.

i. Detail of cases forwarded to Fin. Division for preparation of cheques.

j. List of provisionally registered/registered firms (category wise).

k. Last purchase date/rate/source as on required basis.

l. Performance data of contractors reliability/efficiency.

DEVI ATI ON FROM NORMA L PROCUREMENT PROCEDURE

30. The urgency and the need for early procurement of stores must be kept inview, and as far as possible, timely procurement action must be ensured on allindents. It is necessary that the basic procedure laid down is not deviated in anycase and the relevant basic financial regulations/rules are not violated.

USE OF DI RECTOR/ GM ( PROC.) S POW ERS

31. In the absence of Director/GM (Procurement) i.e. on leave, temporary dutyetc., his financial powers as given in this Policy will be exercised by the actingincumbent viz DGM whose name will be published in the Office Order.

CHECK LI ST FOR CASES OF PROCUREMENT OF MACHI NERY/ EQUI PMENT

32.A check list has been prepared as per ANNEX-N, which covers all importantaspects which should be taken care of by the user as well as Procurement Officerwhile processing a Demand for any machinery or equipment.


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CHAPTER-9

REGISTRATION FORM

Pakistan Space & Upper Atmosphere

Research Commission Procurement Division__________________________________________________________________________________

REGISTERATION FORM

SECTION-A

Company Name

Abbreviated Name

Please tick the appropriate Category

Original Equipment Manufacturer (OEM) OEM Authorized Vendor

Space Agency/ Maintenance Organization Distributor / Supplier

CEO / Chairman Name

Mailing Address

Phone Fax

Email

Main Facility AddressCity / Town State / Province

Country Postal Code:

Phone Fax

Email Address Website Address

Banking DetailsBank Name

Account Number Branch

Branch Code / Name City / Country

Quality Manager Name Position

Mailing Address

Phone Fax

Email Address Website Address


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V-List of Current Customers (Companies / Organizations / Businesses)(Attach documentary proof with proper references in the companies / organizations mentioned above.)

Name of Company /Organization

Current Business / Scope ofWork

No ofYears

Annual ContractVolume

Approx Valueof Business

1

2

3

4

5

VI- Company / Supplier Profile

VII-Business volume with SUPARCO During past five years

Type of Business / Contract Year of Supplies / Contract AnnualVolume

Approx Valueof Business

Performance

1

2

3

4

5

1

2

31

Primary BusinessDetails

4

1

2

32

List of Items /Services

4

1

2

33

List of Authorizationsfrom the Principals

4

4 After Sales Service

5 Warranties

12

36

Any Other Informationthat supplier may liketo provide

4


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VIII- Please tick marks the following questions.

Type of Business / Contract Yes No

1 Do you have any objection to get your office /factory/work premisesinspected by an officer of this department?

2 Is your firm registered under the Factorys Act?3 Is your firm registered under the companys Act 1913?4 Is your firm registered under the Partnership Act 1932?5 Are you registered with the C.C..I&E and if so , what is your category6 Whether registered under the Development of Industries Rule 1950?

The information given above is true to the best of our knowledge; we undertake to informSUPARCO of any changes that may take place later in the status of the Company in Business

/ Agency or the Management. The terms and conditions attached have also been read andcertificate signed.

Authorize Person : Name

DesignationSignature:


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1. INTEGRITY PACT / DISCLOSURE CLAUSE

Declaration Of Fees, Commissions And Brokerage Etc. Payable By The Suppliers, Vendors,Distributors, Manufacturers, Contractor & Service Providers Of Goods, Services & Works

___________________________________________ the Seller / Supplier / Contractor herebydeclares its intention not to obtain the procurement of any Contract, right, interest, privilege orother obligation or benefit fromPakistan Space & Upper Atmosphere Research Commission orany administrative sub-division or agency thereof or any other entity owned or controlled by itthrough any corrupt business practice.Without limiting the generality of the forgoing the Seller / Supplier / Contractor represents andwarrants that it has fully declared the brokerage, commission, fees etc., paid or payable to anyoneand not given or agreed to give and shall not give or agree to give to anyone within or outsidePakistan either directly or indirectly through any natural or juridical person, including it affiliate,agent, associate, broker, consultant, director, promoter, shareholder sponsor or subsidiary, anycommission, gratification, bribe, finders fee or kickback whether described as consultation fee or

otherwise, with the object of obtaining or including the procurement of a contract, right, interest,privilege or other obligation or benefit in whatsoever form from Pakistan Space & UpperAtmosphere Research Commission except that which has been expressly declared pursuanthereto.

The Seller / Supplier / Contractor certifies that it has made and will make full disclosure of allagreements an arrangements with all persons in respect of or related to the transaction withPakistan Space & Upper Atmosphere Research Commission and has not taken any action orwill not take any action to circumvent the above declaration, representation or warranty.

The Seller / Supplier / Contractor accepts full responsibility and strict liability for making anyfalse declaration, not making full disclosure, misrepresenting facts or taking any action likely todefeat the purpose of this declaration, representation and warranty. It agrees that any contract,right, interest, privilege or other obligation or benefit obtained or procured as aforesaid shallwithout prejudice to any other right and remedies available to Pakistan Space & UpperAtmosphere Research Commission under any law, contract or other instrument, be void-ableat the option of Pakistan Space & Upper Atmosphere Research Commission.

Authorized Signature: _______________________________

Name: _____________________________________________

Designation:______________________________________

Date: _____________________________________________


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I hereby confirm that, all above Terms & Conditions have been carefully read aagreed to for Web Based Registration in SUPARCO. The Personal information providbelow is correct & true in best of my knowledge; however, any fainformation/statement will disqualify my registration and business dealing wSUPARCO.

___________________________

Dated: _________ Signature of the Applicant:

Name of Firm: ______________________________Complete Address: ______________________________________________________________________Telephone Nos: _____________________________FAX No.: ___________________________________

E-mail Address: _____________________________Website/URL: _______________________________NIC No.:____________________________________NTN No: ___________________________________GST No.: ___________________________________

Witness No 1 Witness No 2

Signature: ______________ Signature: _______________________

Name: ____________________ Name : ___________________________

NIC No: ____________________ NIC No: ___________________________

Address:____________________ Address:___________________________

____________________ ___________________________

Date: ______________ Date: ________________

Note : These Terms/Conditions are applied for Web-Based Registration purpose only aSUPARCO have the rights to change or amend the above mentioned terms/conditions wtime to time.


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ANNEX-FCONTRACT NO._________________

1. AGREEMENT

a. This AGREEMENT is made at Karachi this _____________ day of _________2002between the PAKISTAN SPACE & UPPER ATMOSPHERE RESEARCHCOMMISSION (SUPARCO), having their Head Office at Sector 28, Gulzar-e-Hijri,Off University Road, P.O.Box #. 8402, KARACHI 75270, (hereinafter referred to as"PURCHASERS") of the one part and M/s.________________________________(hereinafter referred to as SELLERS andprincipals respectively) acting through their local agentsM/s._____________________________which expression shall, where the context so

admits, include their successors, interests and assigns of the other part.

W H E R E A S

b. The PURCHASERS are desirous of purchasing a Complete Machine / Equipment /System along with accessories, spares & services as per Annex-I to this CONTRACTto meet the requirements of the PURCHASERS.

c. The PURCHASERS are desirous that the SELLERS manufacture, test and certify thecomplete Machine/Equipment/System as described at para (b) above at SELLERSfacility and supply, install and commission the same at PURCHASERS' site and

impart necessary training to the PURCHASERS' personnel in operation andmaintenance of the MACHINE including all its Sub-Systems and provide postinstallation technical support and the SUPPLIERS/PRINCIPALS & the local Agentshave agreed to do so, all on the terms and conditions hereinafter contained.

d. NOW THIS AGREEMENT WITNESSETH THAT IN CONSIDERATION of themutual covenants herein contained, the parties hereto agree as follows :

2. DEFINITIONS

In this Agreement, where the context so admits, the following words and expressions have the

meaning respectively assigned hereto:

a. PURCHASERS Means the Pakistan Space & Upper AtmosphereResearch Commission (SUPARCO) ashereinbefore described.

b. SUPPLIERS/PRINCIPALS

Means M/s._________________ as hereinbeforedescribed.

c. LOCAL AGENTS Means M/s.__________________ as hereinbeforedescribed.


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d. MACHINE /EQUIPMENT /SYSTEM

Means the Complete Machine along withaccessories, spares and services as described inAnnex-I hereto.

e. SERVICES Means all Technical services and assistance to beprovided by the SUPPLIERS/PRINCIPALS &Local Agents hereunder for supply, installation /

commissioning of the MACHINE at site and imparttraining to the PURCHASERS' personnel inProgramming, Operation and Maintenance of theMACHINE.

f. SITE Means SUPARCO's Workshop.g. INSPECTOR Means the inspecting authority/officer nominated

by the PURCHASERS.

h. CONTRACT Means this agreement and all related documentsforming the same.

i. PRE-SHIPMENTNSPECTION

Means checking/inspection of all the MACHINEtrial run at SELLERS site by the PURCHASERS'

Engineers to ensure that the MACHINE issatisfactorily functional.

j. FINALACCEPTANCE TEST

Means trying out of the MACHINE at thePURCHASERS site by the PURCHASERSEngineers in presence of the SELLERS Engineersto determine the suitability of the same for thepurpose mentioned at (b) in the opening portion ofthis CONTRACT.

k. FORCE MAJEUR Means any event, act or other circumstance notbeing an event, act or circumstance under thecontrol of PURCHASERS or of PRINCIPALS/

SUPPLIERS or of the Local Agents and shallinclude the definitions as laid down in theenactments.

The DEFINITIONS headings shall not affect the construction thereof. The singulars whereverused include the plurals and vice versa.

3. OBJECT OF THE CONTRACT AND WORK TO BE PERFORMED BY THESELLERS AND THE PURCHASERS.

The SUPPLIERS shall provide the PURCHASERS the MACHINE / EQUIPMENT /SYSTEM, Spares and Services hereinafter set forth, subject to the terms and conditions andother provisions of this CONTRACT except where otherwise stated in this CONTRACT, allsuch MACHINE and Services shall in all respects be in accordance with and conform to thespecifications as laid down in the documents, hereinafter specified.


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4. PERFORMANCE BOND

a. The SUPPLIERS shall provide a Performance Bond for Pak Rs.________ amountequivalent to US$/Euro__________(i.e.10% of Total Contract Value) as per specimenat Appendix-3 within one month from the date of signing the Contract. (Amount to becalculated at official exchange rate of US$/Euro prevailing on the date of issue of

Performance Bond.)

b. The Performance Bond shall be issued by a Scheduled Bank of Pakistan .

c. The Performance Bond shall remain valid upto six months beyond the expected deliverydate of MACHINE or upto successful commissioning of the MACHINE atPURCHASERS site, whichever is later, and shall be automatically extendable in caseof delay in the delivery date of the machine or delay in installation/commissioning dueto any reason. The PURCHASERS shall have the right to encash the Performance Bondin case the SUPPLIERS fail to execute the Contract or any part thereof due to anyreason.

5. MACHINE/EQUIPMENT/SYSTEM

a. The SUPPLIERS shall arrange to supply to the PURCHASERS all the items listed inAppendix-1 as desired by the PURCHASERS. The SUPPLIERS/PRINCIPALS andtheir Local Agents further declare that technical specifications of theMACHINE/EQUIPMENT/SYSTEM in Appendix-1 shall confirm to the Local Agentsquotation No._________________ dated ____________andSUPPLIERS/PRINCIPALS quotation No.________________ dated____________.The MACHINE/EQUIPMENT/SYSTEM shall be carefully inspected,

tested, certified and delivered from the PRINCIPALS Plant locations. ThePRINCIPALS shall provide a Test Certificate indicating that theMACHINE/EQUIPMENT/SYSTEM strictly conform to the capabilities and operationalfeatures required by PURCHASERS.

b. All MACHINE/EQUIPMENT/SYSTEM, components, parts and accessoriesshall bebrand new, of latest manufacture and suitable for the PURCHASERS' requirements.

c. In case the MACHINE/EQUIPMENT/SYSTEM, accessories etc. on the inspection/testat the PURCHASERS' premises is/are found to be used/old or not of goodworkmanship, or not in strict conformity to the specifications mentioned in Appendix-1,

aforementioned offers from the SUPPLIERS/ PRINCIPALS and their Local Agents andother technical publications supplied by the SUPPLIERS/PRINCIPALS or if theMACHINE becomes defective during test and or during the Warranty Period, theSUPPLIERS undertake to replace all such defective items free of cost on CIF basis i.efreight and insurance for shipment of defective parts as well as replacement of newparts shall also be the responsibility of the SUPPLIERS and without any obligations tothe PURCHASERS in accordance with the latest available technology in this respect.All charges regarding return shipment and replacement shipment shall be onSUPPLIERS account.


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c. Trainees nominated by the PURCHASERS shall have sufficient competence in bothtechnical and conversational English language along with reasonable technicalcompetence required for the training.

10. INSTALLATION/COMMISSIONING

a. The Local Agents shall arrange to provide services of their SUPPLIERS/ PRINCIPALS'engineers who will complete the installation/ commissioning of the MACHINE /EQUIPMENT / SYSTEM at PURCHASERS site. The PURCHASERS shall completeall necessary preparations at site according to instructions to be provided by theSUPPLIERS at least 30 days prior to the arrival of PRINCIPALS Engineers to startinstallation work from the first day they visit the site. All expenditure in this regard onairfare, board, lodging, local transportation and all related charges in this regard shall beon SUPPLIERS account.

b. Total Contract Price as mentioned in Appendix-1 covers all charges for this serviceincluding return airfare, board/lodging, local transportation and all related expenses of

the above said Engineers.

c. The PURCHASERS shall provide the SELLERS with access to the said location at thesite and necessary power connection, lighting and all requisite facilities and assistanceother than the specialized machinery, tools and specialized test equipment which is theresponsibility of the SELLERS at their own expense to enable installation andcommissioning of the MACHINE / EQUIPMENT / SYSTEM. The PRINCIPALSEngineers / technicians shall be provided with an officer of PURCHASERS, who willbe in charge of the PURCHASERS' Personnel and who will assist the PRINCIPALSEngineers in the Commissioning of the MACHINE / EQUIPMENT / SYSTEM untilcompletion of final acceptance tests.

d. The SUPPLIERS shall be responsible for satisfactory completion of overall integrationand commissioning of the MACHINE / EQUIPMENT / SYSTEM and for the FinalAcceptance test to be carried out to the entire satisfaction of the PURCHASERS andPURCHASERS Engineers will issue a Certificate of Final Acceptance.

11. POST INSTALLATION TECHNICAL SUPPORTThe SUPPLIERS undertake to provide the PURCHASERS, with the PURCHASERSrequirements of post installation technical support in proper operation and maintenance ofthe MACHINE / EQUIPMENT / SYSTEM including assured supply of all spares and to

clarify operational problems (if any) arising during use of the MACHINE / EQUIPMENT /SYSTEM for a period of 15 (fifteen) years. The Local Agents shall provide their bestassistance in this regard under the guidance and cooperation of theSUPPLIERS/PRINCIPALS.

12. PACKING, MARKING, SHIPMENT.a. The SUPPLIERS shall use standard export packing which shall be suitable for shipment

of similar items overseas by means of air / sea / rail / road to ensure their undamagedand safe arrival in Karachi and its subsequent loading / unloading and surface


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transportation to PURCHASERS SITE. Each package of the consignment shall alsocontain a "Packing List" detailing in the contents of the packages. All packages shall bemarked as under:

i. Contract No. S&P- ( )/2001-2002ii. Consignee DIRECTOR / GENERAL MANAGER(Proc.)

P.O.Box No.8402, KARACHI-75270iii. Serial No. of Package

iv. Net Weight, Gross Weightand Measurements.

v. Each package will bepainted with a greenband 50mm wide belowmarking.

b. The SUPPLIERS shall arrange shipment of stores through M/s. National ShippingCorporation (PNSC) on "Freight To Collect" basis, the freight will be paid by thePURCHASERS in Pakistan in Pak Rupees at actual.

c. Transshipment and Partshipment shall not be allowed.

d. The following P.N.S.C. agents, or any other agent, may be contacted to arrangeshipment on a PNSC vessel.

e. The SUPPLIERS shall give telefax / E-Mail information, followed by a confirmationletter to the PURCHASERS, immediately after the consignment is delivered to the

PNSC Agents in _____for dispatch to the PURCHASERS as under:

i. Bill of Lading No. & Date.ii.Vessel Name & Date of Sailingiii.Expected date of arrival in Karachi.iv.Name of Shipping Agent in Karachi.v. Total number of packages shipped with Net and Gross Weight and total volume.vi.Any other detail and guidance which may be necessary for safe arrival of the goods

at Karachi Port and its subsequent loading on trucks and off- loading at site.

f. The SUPPLIERS shall forward to the PURCHASERS the under mentioned documents

by safe means as soon as the consignment is delivered for shipment, failing which theSUPPLIERS shall be liable for making good any loss or demurrage :

i. Packing List of each consignment/package (6 copies)ii.Manually signed Invoice ( 6 copies)iii.Non-negotiable copy of Bill of Lading (2 copies)


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c. In the event that there should be any disagreement between the parties as to whether ornot compensate-able modifications are involved, the matter in dispute shall be reducedto writing and signed by representatives of both the parties, and the SUPPLIERS shallthereupon perform the work involved in such modification, reserving the right to solveat a later time the said question by mutual agreement or by arbitration persuant to the

provisions in that behalf herein contained.

16. DELIVERIESa. The Parties hereto agree to the following time table for performance of each part of the

work by the SUPPLIERS / PRINCIPALS:

i. Commencement of the It shall be the date of signingCONTRACT of the CONTRACT by both the parties.

ii.Delivery of MACHINE/ Within____ months from the date

EQUIPMENT/SYSTEM of receipt by the SELLLERS of BankConfirmation that the L/C has been established.

b. The SUPPLIERS undertake to dispatch the MACHINE / EQUIPMENT / SYSTEM,accessories and spares as one consignment.

c. In the event of any delays in the above time table caused by circumstances constituting"force majeure", the SUPPLIERS shall be allowed an extension of time without anyLiquidated Damages, not less than the period of delay resulting directly from suchcircumstances for the performance of the part of work which has been thereby delayed.But all the terms and the conditions of the CONTRACT shall remain in force and the

nature of the CONTRACT shall not be altered or amended except for time extension.d. Should the SUPPLIERS fail to despatch all or any part as defined in Appendix-1 i.e.

technical part of the CONTRACT within the specified time table under Clause 16(a)the SUPPLIERS agree, in case of such delay in the shipment of MACHINE /EQUIPMENT / SYSTEM to pay liquidated damages @ 0.5% of the total Contractvalue for each weeks delay thereafter. Claims for indirect damages are excluded.

17. FINAL ACCEPTANCE TESTSoon after the physical inspection and installation/commissioning of the MACHINE arecompleted by SUPPLIERS Engineers/Technicians at the PURCHASERS site, final

acceptance test shall be carried out jointly by SUPPLIERS & PURCHASERS' Engineers/ Technicians verifying the functionality of Machine and making functional test onpieces put at disposal by the PURCHASERS. The Acceptance Test Certificate would beissued by PURCHASERS (SUPARCO) Engineers subject to satisfactory functional tests.These tests would be as per ISO or DIN standards, and/or SUPARCOs specificrequirements in respect of items ordered.


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iv.Original and two copies of duly signed Airway Bill/Bill of Lading / Couriersfreight receipt indicating actual freight paid.

v. Copy of shipment declaration sent to N.I.C.L.vi.Guarantee certificate that correct goods as per order have been dispatched.

e. _____ % of the total Contract value amounting to US$/Euro(...........................only)shall be released to the SUPPLIERS / PRINCIPALS after satisfactory installation /commissioning of the MACHINERY / EQUIPMENT/SYSTEM against presentation ofthe following documents to the bankers:

i. Manually signed Draft drawn on the openers.ii.Manually signed invoice in octuplicate showing the amount as final payment.iii.Final Acceptance Certificate issued by the PURCHASERS.

f. An amount representing _______% of total F.O.B. value of MACHINE / EQUIPMENT/ SYSTEM, accessories and spares will be paid by the PURCHASERS to the

SUPPLIERS Agents in Pakistani Currency as commission after final acceptance of theMACHINE. Conversion rate will be official exchange rate prevailing on the date ofretirement of shipping documents. A pre-receipted bill in quadruplicate shall besubmitted by the SUPPLIERS Agents for release of this payment.

20. PATENTS

The SUPPLIERS shall indemnify the PURCHASERS and keep the PURCHASERSindemnified against all and any claim for infringement of Letters Patent, Registered Design,Copy Right or similar protection (Published up to the date of CONTRACT) by the use orsale of any article or material supplied by the SUPPLIERS to the PURCHASERS and

against all costs and damages which the PURCHASERS may become liable in any suchaction. Provided always that this indemnity shall not apply to any infringement which isdue to SUPPLIERS having followed design and instructions furnished by thePURCHASERS permitting the SUPPLIERS at the PURCHASERS expense to conduct anylitigation that may ensue and all negotiations for settlement of any claim. ThePURCHASERS on their part will warrant that any design or instructions, furnished or givenby the PURCHASERS shall not be such as will cause the SUPPLIERS to infringe anyLetters Patent, Registered Design or Trade Mark in execution of the CONTRACT.

21. CONDUCT OF PERSONNELPersonnel deputed by one party to the other under this CONTRACT shall observe all rulesand regulations as to discipline and otherwise of the receiving party. Either party, onreasonable cause being shown, may request that any person deputed by the other party bereplaced, and each such request shall be complied forthwith. Any person withdrawn as aresult of any such request shall not be returned to the receiving party's premises without theprior consent of the receiving party.


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24. ARBITRATIONa. All or any disputes and differences arising out of or in connection with this

CONTRACT shall be settled by a Court of Arbitration based on the rules as set forth bythe International Chamber of Commerce, Paris, France.

b. This Court of Arbitration shall be composed of 3 arbitrators. Each party shall appoint

one arbitrator and these two appointed arbitrators shall select the third arbitrator to actas Chairman. If one party fails to appoint its arbitrator within a period of four weeksafter receipt of written, telegraphic or telefax / E-mail request from the other partyand/or if any agreement cannot be reached between the two arbitrators on the selectionof the third arbitrator within a period of four weeks after the appointment of the secondarbitrator, the arbitrator not appointed by the party and/or third arbitrator shall benominated in accordance with the rules of Conciliation and Arbitration of theInternational Chamber of Commerce.

c. The place of arbitration shall be _________ and the Laws of __________ shall beapplicable.

d. The award of the Court of Arbitration shall be final and binding on both the parties.

e. The Court of Arbitration shall impose the costs of such arbitration procedure (includingsolicitors' fees and travelling expenses) on the losing party. In case of partial defeat, thecosts will be proportional.

25. The SUPPLIERS shall not without the prior written consent of the PURCHASERSadvertise, announce or cause to be advertised/announced any information regardingplacement of the Contract.

26. The SUPPLIERS shall not sublet, transfer or assign the Contract either as a whole or anypart thereof without the prior written consent of the PURCHASERS.

27. The SUPPLIERS shall be responsible for the safe custody and security of all plans,drawings, designs and other data furnished by the PURCHASERS in connection with thispurchase. All such documents shall remain the property of the PURCHASERS, theSUPPLIERS shall treat them as CONFIDENTIAL and not declare them publicly orotherwise made them known to any party without the prior written consent of thePURCHASERS.

28. ANNEXES, REFERENCE DOCUMENTS ETC.

All documents, annexes referred to in this CONTRACT shall be an integral part of thisCONTRACT for all intents and purposes.

29. NOTICES

All notices or communications hereunder shall be in writing, in English language anddelivered by hand or dispatched by pre-paid post or transmitted by telefax / E-mail to beconfirmed by subsequent Registered Mail and addressed as follows :


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IN THE NAME OF SUPPLIERS : M/s.

IN THE NAME OF PURCHASERS: Director/General Manager (Proc.),Pakistan Space & Upper Atmosphere

Research Commission, Sector 28,Gulzar-e-Hijri, Off University Road,Karachi-75270, Pakistan.

IN WITNESS HEREOF:

For and on behalf of: For and on behalf of:

M/s._________________ Pakistan Space & Upper Atmosphere ResearchCommission (SUPARCO).

Signature _____________________ Signature _____________________

Name ________________________ Name ________________________

Designation ___________________ Designation ___________________

Stamp ________________________ Stamp ________________________

Dated ________________________ Dated ________________________

WITNESS 1 WITNESS 2

Signature _____________________ Signature _____________________

Name ________________________ Name ________________________

Address ______________________ Address ______________________

_____________________________ _____________________________


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APPENDIX-2

To ANNEX-F

SPECIMEN OF WARRANTY

CONTRACT NO.S&P- ( )/2001-2002 DATED: __________

MANUFACTURER NAME: M/s. ___________________________________________

1. We hereby guarantee that the MACHINE/EQUIPMENT/SYSTEM, all associated equipment,accessories and spares supplied under the terms of the above CONTRCT are brand new,

complete in all respects and of good quality material and workmanship.

2. We hereby guarantee that during the Warranty period we will replace or rectify free of chargeC&F Karachi all those MACHINE / EQUIPMENT / SYSTEM, accessories and spares founddefective before or under normal use or not within the limits and tolerances stated by thespecifications or in any way not in accordance with the terms of this CONTRACT and bear allexpenses in respect of Engineers' services in this behalf.

3. The Warranty Clause is applicable only in the event that the MACHINE / EQUIPMENT /SYSTEM, accessories and their spares are not subjected to damages from external sources suchas, improper handling, improper storage or misuse of any sort. The PURCHASERS' personnel

shall handle the MACHINE / EQUIPMENT / SYSTEM carefully and operate them strictly inaccordance with the conditions laid down in the operation manuals.

4. The Warranty shall remain valid for a period of 12 months from the date of successfulcompletion of acceptance test of the MACHINE / EQUIPMENT / SYSTEM by thePURCHASERS.

Signature: _______________Name : _________________Designation : ____________

Stamp: _________________Date: __________________Place: __________________


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APPENDIX-3

To ANNEX-F

SPECIMEN OF PERFORMANCE GUARANTEE

GUARANTEE NO.___________DATED____________________

THE PAKISTAN SPACE & UPPER ATMOSPHERE

RESEARCH COMMISSION (SUPARCO),SECTOR 28, GULZAR-E-HIJRI,OFF UNIVERSITY ROAD,P.O.BOX #. 8402,KARACHI-75270.

OUR GUARANTEE NO._________________________ FOR _____________CONCERNING CONTRACT NO.S&P- ( )/2001-2002 DATED________ FOR SUPPLY OF_____________________________________________________

Whereas M/s.________________________________ , hereinafter called theSUPPLIERS, have requested us for issuance of our guarantee for_____________(________________________________________________only)in equivalent Pak Rs. ____________as a Performance Bond in respect ofsupply of ______________ along with accessories, spares and services. Wehereby agree to make an unconditional payment of a sum in Pak. Rupees

equivalentof_______________(____________________________________________only) to you on receipt of your first written confirmation by us that the SUPPLIERSabove named, have failed to fulfill the obligation assumed by them. This letterof guarantee will remain valid until six (6) months after the last date of shipmentof the Machine specified in the Contract by the PURCHASERS and any claimhereunder must be lodged with us during the period of its validity. This letter ofguarantee becomes invalid at its expiry date i.e. _______and is to be returned tous. Irrespective of its return we consider ourselves fully discharged from anyobligation under the letter of guarantee after the expiry date. In case of extensionin shipment date or delay in installation/commissioning of the Machine dueto any reason, this guarantee shall be automatically extended for thecorresponding period of delay in shipment or installation/commissioning.

FOR (BANKERS)Signature :______________Name : ________________Designation : ___________Stamp Of Bank : ________


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APPENDIX-4

To ANNEX-F

SPECIMEN OF ADVANCE BANK GUARANTEE

GUARANTEE NO.____________DATED : _____________________

In consideration of the Contract No.____________________ dated _________ between M/s._________________________________ (hereinafter called the SELLERS) and M/s. Pakistan Space &Upper Atmosphere Research Commission (SUPARCO), Sector-28, Gulzar-e-Hijri, Off UniversityRoad, P.O. Box No.8402, Karachi-75270, (hereinafter called the PURCHASERS) stipulating that thePURCHASERS shall pay to the SELLERS an amount of_____________(_____________________________________only) in advance, such payments to be

released against a Bank Guarantee, now, we (hereinafter called the BANK) hereby irrevocablyundertake to immediately repay to the PURCHASERS or to their order, merely upon receipt of thePURCHASERS first written notice an amount not exceeding____________(__________________________________only) that may be claimed by thePURCHASERS at their own discretion without it being necessary for the PURCHASERS to prove oreven assert to the Bank any default whatsoever of the SELLERS under the Contract. Claims againstthe Bank on account of this Guarantee shall be made by letter or letters, duly signed by the authorisedrepresentative of the PURCHASERS.

This Guarantee shall remain in force until ______ months after the last date of shipment/finalacceptance i.e. up to____________ and shall be extended automatically in case of extension in thecorresponding Letter of Credit for the period of L/C extension.

Signature: ________________________Name & Designation: _______________

_________________________________Stamp of Bank: _____________________


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ANNEX-G

Ref. No.___________ Date:_____________

M/s.__________________

____________________________________________

Subject: CONTRACT FOR THE SUPPLY OF____________________________

Dear Sirs,

With reference to your quotations/letter/fax No.______________dated _____________, we arepleased to place a contract for supply of stores to this Commission as per attached list. The terms andconditions in the list and annex to this Contract are to be carefully noted and strictly complied with.

We are advising our bankers separately to establish a Letter of Credit for FOB/C&F Karachiamount of _________________________________in your favour/favour of your Principals,M/s.______________________________. Particulars thereof will be communicated to you as soon asthe same is established.

Correct documents must be negotiated as well as airmailed to ensure clearance of theconsignment on its arrival here, without any delay for lack of documents. In case of part shipmentwhere allowed, invoices should be prepared for each consignment separately.

If the contents of this Contract are acceptable to you, kindly return the enclosed duplicate copyof the same duly signed on all pages in token of your acceptance and execute the Contract within thevalidity stipulated therein positively.

Thanking you,

Yours faithfully,


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No.______________ Date:_____________

LIST OF ITEMS

S.No. BRIEF DESCRIPTION QUANTITY UNIT PRICE TOTAL PRICE11

12

13

14

15

16

17

18

19

20

Total ex-works value: ______________________________

Packing,handling & inlandtransportation charges: ______________________________

Total F.O.B. Value:

Less % agency commissionpayable in Pak Currency tothe local agents: ______________________________

Net F.O.B. value:Estimated airfreight chargesupto airport payable at actuals,but not exceeding: ______________________________

Total C&F Karachi/Islamabad/Lahore Value : ______________________________

Rounded figure: ______________________________


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No.______________ Date:_____________

ADDITIONAL CONDITIONS (FOR SEA SHIPMENT)

1. The invoices are to be prepared in accordance with the list and Annexure to Openers Contractindicating total FOB/C&F value of the items actually shipped. Any loss or demurrage charges dueto non-compliance with this instruction shall be borne by the Suppliers.

2. F.O.B. value shown covers all the expenditure up to the port of shipment.

3. Duly signed certificate of the shipping company is required that the shipment has been made byFirst Class steamer and/or motor vessel over 2000 tons gross not over 25 years old. Classification100-A within Lloyds Register or equivalent classification.

4. Sea shipment must be made on PNSC vessel on Freight to Pay basis, which will be paid as per

actuals in Pak Rupees. The following PNSC agent or any other agent may please be contacted tofacilitate arrangement of shipment of the consignment:

5. Duly signed and dated certificate of the Manufacturers/Suppliers is required that the items are ofcurrent and new production and not re-conditioned.

6. Manufacturers/Suppliers original Warranty/Guarantee/Mill Test Certificate bearing signature anddate should be attached with the invoice at the time of presentation of shipping documents to thebankers.

7. Once the Contract and L/C are accepted by the beneficiary, the charges for any subsequent

amendment in the L/C demanded by beneficiary, for no omission of SUPARCO, shall be borne bythem.

8. Shipment/transshipment on Indian or Israeli Flag vessels not allowed.

9. Please advise this Credit to the beneficiary immediately and confirm us advising date.


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No.______________ Date:_____________

ADDITIONAL CONDITIONS (FOR AIR SHIPMENT)

1. The invoices are to be prepared in accordance with the list and Annexure to Openers Contractindicating total FOB/C&F value of the items actually shipped. Any loss or demurrage charges dueto non-compliance with this instruction shall be borne by the Suppliers.

2. F.O.B. value shown covers all the expenditure upto the airport of shipment.

3. Air-freight charges are to be paid at actuals on production of original Airway Bill/Freight Memo,but not exceeding

4. Duly signed and dated certificate of the Manufacturers/Suppliers is required that the items are ofcurrent and new production and not re-conditioned.

5. Manufacturers/Suppliers original Warranty/Guarantee/Mill Test Certificate bearing signature anddate should be attached with the invoice at the time of presentation of shipping documents to thebankers.

6. Once the Contract and L/C are accepted by the beneficiary, the charges for any subsequentamendment in the L/C demanded by beneficiary, for no omission of SUPARCO, shall be borne bythem.

7. P.I.A. should be given preference at the time of shipment, if their rates are economical.

8. Please advise this Credit to the beneficiary immediately and confirm us advising date.

9. Shipment/Transshipment on Indian or Israeli Airlines not allowed.


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The declaration of shipment including a non-negotiable Airway Bill/Bill of Lading/Courier Receiptand invoice of shipment of the consignment, should be sent immediately to the aforesaid Companyunder intimation to this Commission.

7. DESPATCH ADVICEA fax/E-mail information as under will be given immediately/after consignment is delivered fordispatch to this Commission, referring to the above contract:

a. Name of Vessel/Airline/Courier indicating B/L/AWB/Courier Reciept number.b. Date of sailing/flight with its number and name of sea/airport.c. Expected date of arrival at Karachi.d. Name of Shipping/Courier agents in Karachi.e. Total number of packages shipped with gross weight.

8. DESPATCH OF DOCUMENTS:Negotiable shipping documents as detailed below will be presented to the bankers soon aftershipment so as to reach this Commission before arrival of the Vessel. In case of air shipmentnegotiable shipping documents should be submitted to the bankers soon after the consignment isdispatched, under intimation to this Commission. Eight copies of the invoice and eight copies ofpacking list duly signed will also be dispatched to this Commission well in advance of shipment:

a. Draft showing FOB/C&F Karachi value.b. Eight copies of duly signed invoice indicating actual C&F value of the goods dispatched.c. Eight copies of packing list.d. Original and two copies of duly signed Airway Bill/Bill of Lading/Couriers freight receipt

indicating actual freight paid.e. Copy of shipment declaration sent to N.I.C.L.f. Guarantee certificate that correct goods as per order have been dispatched.

9. GUARANTEE OF DELIVERY PERIODThe stipulated delivery period should be strictly adhered to. Any anticipated delay beyond yourcontrol shall be intimated to this Commission well in advance of the expiry of the Contract date ofshipment for extension thereof, otherwise liquidated damages will be imposed @2% on F.O.B.value of the contract per month or part thereof.

10.CONCILIATION AND ARBITRATION CLAUSEAny dispute arising in respect of this Contract after importation of the contracted goods in Pakistanshall be settled in accordance with the normal practice of International Chamber of Commerce andIndustry. In case of any arbitration, the arbitrators shall be appointed from Pakistan and arbitrationproceedings shall also take place in Pakistan. Payment of any expenditure that may be incurred forthe purpose shall be made in Pak. Rupee.


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ANNEX-L

CERTIFICATE

Certified that storespurchased are as per specs

and are technicallyaccepted.


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ANNEX-M

SPOT PURCHASE COMMITTEE

P.NO. Rank/Desig Name Sig

--------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------

-----------------------------------


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ANNEX-N

CHECKLISTFOR CASES OF MACHINERY/EQUIPMENTS

1. Detailed Technical Specifications.

2. Circuit/Schematic Diagrams and Technical Drawings.

3. User Manual.

4. Service Manual.

5. Repair Manual.

6. Maintenance Manual.

7. Part Catalogue.

8. Operation and Maintenance Manual.

9. Warrantee/Back up Support.

10.Initial Inspection Report by the Firm.

11.Listing of Initial Buy Spares.

12.Listing of Dealers/Service Providers in Pakistan.

13.Assistance of Firm required in Installation and Commissioning of Equipment/Machinery.

14.Training requirement.

NOTE:

Any other technical details which could help in the reliability/maintainability and service-ability of themachinery or equipment.


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ANNEX -R

Subject: Procedure for procurement through use of Credit Card Principles

1. The governing principles for procurement through Credit Card shall be as follows:a. The Credit Card shall be used in rare cases for procurement of stores which are small in volu

and low in prices.

b. The misuse of credit card shall be protected by enforcing special checks and balances.

c. Up-keeping of record of payments and its submission to higher authorities.

d. Controlling Authorities, Proc Div, Fin Div and Stores Div should keep record of financial effec

each transaction.

Policy

2. The policy for procurement through Credit Card is as under:-

a. The Credit Card shall be used for official purposes only. No private transaction is allowed in

case.

b. The Credit Card shall be obtained through City Bank for a maximum operating limit of Rs 550,0

(in US Dollars), in the name of DH (Fin).

c. The Card will only be operated by DH (Fin) for placing of orders and for making spec

payments on receipt of marked Demand Proforma from Proc Div duly approved by

Competent Authority.

d. DH (Fin) will also be the safe custodian of the Credit Card.

e. A register shall be maintained each by the Controlling Authority, Finance Wing and Procurem

Division to record payments through Credit Card for such demands. The use Controll

Authority will ensure submission of expenditure statement to Proc Div by closing date of e

month. Proc Div will reconcile it by 4th of each month. Finance Div will also keep record of su


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expenditures and will compile it on monthly basis. The expenditure statements will e submit

to the Chairman by Proc and Fin Divisions each, on 5th of every month.

f. On receipt of stores, the Credit Card holder will sign the bill. He will keep a photocopy of the b

and the original bill along with the store to the representative of Proc Div.

g. The Credit Card shall only be used for Foreign Procurements in Foreign Exchange only.

payments in local currency relating to the Procurement of Stores shall be paid through norm

procedure.

h. The Members of the Commission shall be authorized to sanction for procurement of stor