Table of Content

Procurement In PSML Adeel AkbarSaim Bin RashidSyed Babar AliZain Siddiqui

Table of Content Introduction Procurement Goal Procurement Planning Procurement Methods Procurement Advertisement Qualification and Disqualification Tender processing

IntroductionPakistan Steel Mills signed a Memorandum of Understanding with Transparency International Pakistan (TI-Pakistan) in which it was agreed that PSML along with TI-Pakistan will work jointly on the implementation of the recommendations of the National Anti corruption Strategy for providing Systemic improvements initially within the PSML for transparency in its procurement procedures. That PSML would include Transparency in all its dealings and incorporate the necessary Checks and Balances in PSMLs effort to reduce corruption. It was also agreed that the Integrity Pact which is an Integral Part of the National Anti Corruption Strategy which was approved by the Cabinet on 20th September 2002 & 5th October 2002 with its Implementation mechanism approved by the President on 24th October 2002, would be a part of all Contract Awards by the PSML.

IntroductionIt is an established fact that the misuse of discretionary authority and discriminatory evaluation procedures can only be prevented by a transparent procurement process and with the participation of Civil Society.

PSML firmly believes that Transparency through internal and external scrutiny is an essential element of accountability and should be an inherent characteristic of all processes and procedures, plans, actions or decisions relating to Procurement.The Manual has been compiled to achieve following aimsAll Procurements shall be allotted to the eligible firms, with the best quality of works/Plant & Equipment/services / Information Systems, but at the same time consideration must be given to obtain the lowest price for the stipulated/acceptable quality.Timely and Transparent Contract Implementation is a key to the success of Procurement and will only be achieved by making available on PSML website all Tenders Notices, , Evaluation Reports, Award Decisions and Progress reports for general public information.

Procurement GoalTo ensure that the Products/goods, Services, Works, Plant & Equipment and Information Systems needed to carry out the projects are procured with due attention to economy; To ensure that Projects are executed within shortest period of time;To ensure that the funds are used to buy only those Products/goods, Services, Works, Plant & Equipment and Information Systems which are needed to carry out the project; To give all qualified bidders an equal opportunity to compete for the contracts; To ensure that the procurement process is transparent, fair and discretion free.

6Main ConsiderationsEconomyEfficiencyEqual OpportunityTransparency

Procurement GoalProcurement Goal

Procurement PlanningNeed AnalysisSource of fundSpecificationGovernment policyUncertainty Management

Procurement Methods Open competitive biddingSubmission of bidReservations and preferenceBid security Bid validity Extension of time for submission of bids

Procurement MethodPetty purchasesRequest for quotationsLimit of forty thousand rupees;has standard specifications;Minimum of three quotations offering the lowest priceDirect contracting The acquisition of spare parts or supplementary servicesOnly one manufacturer or supplierChange of supplier would disproportionate technical difficultiesBelow fifteen per cent of the original procurementIn case of an emergency.Negotiated tenderingSupporting a specific piece of research or an experimentFor technical or artistic reasonsFor reasons of extreme urgency brought about by events unforeseeable

Methods of advertisementon the Authoritys website and in print media (forty thousand rupees and up to one million)Over one million rupees should be advertised on at least two national dailies Advertise until the closing date for the submission of bids.Response timeLess than fifteen working days for national competitive bidding thirty working days for international competitive biddingno time limit shall be applicable in case of emergencyThe response time shall be calculated from the day of its first publication in the newspapersExceptionsRelated to national security Intellectual property rights

Procurement Advertisement

Qualification and Disqualification(a)relevant experience and past performance; (b)capabilities with respect to personnel, equipment, and plant;(c)financial position;(d)appropriate managerial capability; and(e)any other factor that a procuring agency may deem relevant, not inconsistent with these rules.

Tender processingOrganize Project Management / Implementation TeamsDesignate staff and facilities and decision to appoint consultants.Establish Independent Evaluation Committees and Project Award Committees. 0 12 weeks

Prepare Prequalification Documents (In case the Pre-qualification is being undertaken)Review procurement strategy and confirm packagingEstablish explicit, transparent and fair criteria for the evaluation of firms applicationsConfirm adequacy of draft technical specificationsPrepare the Instructions to Applicants including the procedural and substantive qualifications aspects1-3 weeks

Revise and Clear Prequalification Document (if necessary)Revise documentsObtain Approval 1 week

Tender processing

Tender processingDraft Bidding DocumentsTechnical specifications schedule of requirements special conditions of contract & sample forms instructions to bidders and bid data sheet, including supplier qualifications and bid evaluation method invitation to bid & procurement noticeassemble documents & obtain agency approval ( 2-8 Weeks)Obtain Approval of Bid Documents( 1 week )

Evaluate and Select Pre-qualified FirmsConfidentially evaluate applicants in terms of their: experience and financial and technical resourcesSelect qualified applicantsPrepare full prequalification report and submit to approving Authority 1- 2 weeks

authority.

Tender processingObtain approval 1 weekDistribute List of Pre-qualified Firms to All ApplicantsIssue Bidding DocumentsDistribute invitation to bid 4 - 8weeks

Tender processingOpening of BidsOpen Bids in presence of Bidders.Announce the Bidders name, Bid Security, Bid Price, and any discount bidders have offered.Get the signatures of all Bidders and Bid Opening Committee Members.After Bidders leaves the meeting, Bid Committee members shall sign all the Bids, including the prices, rates offers, and initial all pages, and initial all the corrections made by the bidders in the Bid Documents.

Evaluate and Select Lowest Responsive Evaluated Bid.*15 DaysNote: * Evaluation period may be amended depending on the complicity of the Tender, but prior to issue of tenders.

Tender processingEvaluation Report Declaration on PSML Website for inviting Objections

10 Days.Re Examine Evaluation Report and Objections.Revise and Finalize Evaluation Report and Submit the Recommendation to Award the Bid to the Lowest Responsive Bidder to Authority for Approval, and Award the Bid to the Lowest Responsive Bidder.16 Days