Public Procurement Act 2006 English
Public Procurement Act 2006 English
Public Procurement Act 2006 English
However,
working draft accommodating all latest
amendments may be seen at bottom of this gazette.
The Publicc Procurement Act 2006
(Amendedd up to 29th March,
M 2011
GOV
VERNM
MENT OF
O THE
E PEOPLE’S R
REPUBL
LIC OF
BANG
GLADES
SH
The Public
P Procuureme
ent
Actt 2006
(Act No. 24 of 20
006)
The following Act, passed by the Parliament, received the assent of the President on 22
Ashar 1413 corresponding to 6 July 2006 and is hereby published for the information of the
general public:
CHAPTER ONE
PRELIMINARY
1. Short title and (1) This Act may be called The Public Procurement Act, 2006.
commencement
(2) It shall come into force on such date as the government may,
by notification in the Official Gazette, determine1.
2. Definitions In this Act, unless there is anything repugnant in the subject or
context:
(1) “administrative authority” means the concerned procuring
entity, head of the procuring entity and Secretary of the Ministry
or Division respectively;
(2) "advertisement" means an advertisement published under
section 40 in newspapers, website or any other mass media for
the purposes of wide publicity;
(3) "applicant" means a person eager to be enlisted in the Limited
Tendering Method under section 32 (a) or to be pre-qualified in
response to an Invitation for Pre-qualification under part-2 of
Chapter-Six, or to be short-listed in response to a request for
Expression of Interest under section 54;
(4) “approving authority” means the authority which, in
accordance with the delegation of financial powers, approves
the award of contract for the procurement of goods, works or
1
January 31, 2008 declared as the effective date of the law vide SRO no. 20-AIN/2008 dated 27 January 2008.
1
services;
(5) “code of ethics” means the set of conditions and provisions
which a Person shall abide by while participating in public
procurement;
(6) “consultant” means a person under contract with a procuring
entity for providing Intellectual and Professional Services;
(7) “contractor” means a Person under contract with a procuring
entity for the execution of any works under this Act;
(8) "Delegation of Financial Powers" means the orders
regarding the delegation of financial authority, issued by the
Government from time to time, relating to the conduct of public
procurement or sub-delegation of financial powers under such
delegation;
(9) “evaluation committee” means a tender or a proposal
evaluation committee constituted under section 7;
(10) "framework contract" means a contract, effective for a
specified period of time, between one or more Procuring
Entities and one or more suppliers, establishing the terms
governing the procurement of goods and related services, with
regard to price, and the quantity or, as case may be, estimated
quantities;
(11) "goods" means raw materials, products and equipment and
objects in solid, liquid or gaseous form, electricity, and related
services if the value of such services does not exceed that of
the goods themselves;
(12) “government procurement” means procurement by a
procuring entity using public funds under this Act.
(13) "Head of the procuring entity" means the Secretary of a
Ministry or a Division, the Head of a Government Department
or Directorate, or as the case may be, Divisional
Commissioner, Deputy Commissioner or district judge2 or the
Chief Executive, by whatever designation it may be called, of a
local government agency, an autonomous or semi-autonomous
body or a corporation, or a corporate body established under
the Companies Act;
(14) "intellectual and professional services" means intellectual
and professional services regarding to be performed by
consultants with advisory, design, supervision or transfer of a
know-how nature;
(15) "in writing" means communication written by hand or machine
duly signed and includes properly authenticated messages by
facsimile or electronic mail;
(16) "opening committee" means a tender opening committee
(TOC) or a proposal opening committee (POC) constituted
under section 6;
(17) “Person” means an individual, body of individuals, sole
proprietorship, partnership, company, association, cooperative
society who wishes to participate in procurement proceedings.
(18) "physical services" means the following services with
measurable outputs, -
a) the supply of goods or execution of works relating to
operation maintenance of facilities or plant, surveys,
2
Inserted vide section 2 of Public Procurement (Second Amendment) Act, 2009 (Act 65 of 2009)
2
exploratory drilling, or
b) individual services oriented contracts regarding security
services, catering services, geological services or third
party services;
(19) "pre-qualification" means a procedure for demonstrating
qualifications as a pre-condition for being invited to tender;
(20) “prescribed” means prescribed by rules or until such rules are
framed, prescribed by the government by special orders in the
Official Gazette;
(21) "procurement" means the purchasing or hiring of goods, or
acquisition of goods through purchasing and hiring, and the
execution of works and performance of services by any
contractual means;
(22) "procuring entity" means a procuring entity having
administrative and financial powers to undertake procurement
of goods, works or services using public funds;
(23) "public funds" means any funds allocated to a procuring entity
under Government budget, or loan, grants and credits placed at
the disposal of a procuring entity through the government by
the development partners or foreign states or organisations;
(24) "public procurement" means procurement using public funds;
(25) “quality” means quality of goods, works or services;
(26) "quotation" means the priced offer in writing received from
tenderers for the procurement of readily available standardised
goods, works or physical services subject to the financial
limitation as prescribed by rules;
(27) "related services" means services linked to the supply of
Goods contracts;
(28) ‘’responsive’’ means qualified for consideration on the basis of
evaluation criteria so declared and specified in the tender
document or in the request for proposal document.
(29) “review panel” means a panel comprised of specialists.
(30) “rules” means the rules made under this Act;
(31) "services" means related services, physical services or
intellectual and professional services;
(32) “short-list” means a list of applicants considered suitable to be
invited to submit proposals for intellectual and professional
services following the evaluation of applications submitted in
response to a Request for Expressions of Interest under
section 54;
(33) "supplier" means a person under contract with a procuring
entity for the supply of goods and related services under this
Act;
(34) "tender or proposal", means a tender or as the case may be
a proposal submitted by a tenderer or a consultant for delivery
of the goods, works or services to a procuring entity in
response to an Invitation for tender or a request for proposal;
and for the purposes of this Act, a quotation shall also be
included in tender;
(35) "tender document or request for proposal document",
means the document provided by a procuring entity a tenderer
or consultant as a basis for preparation of its tender or
proposal;
(36) "tenderer" means a Person who submits a tender;
3
(37) "works" means all works associated with the construction,
reconstruction, site preparation, demolition, repair,
maintenance or renovation of railways, roads, highways or a
building, an infrastructure or structure or an installation or any
construction work relating to excavation, installation of
equipment and materials, decoration, as well as physical
services ancillary to works, if the value of those services does
not exceed that of the works themselves.
3. Scope of (1) This Act extends to the whole of Bangladesh.
application
4. Act to override Notwithstanding anything contained in any other law, the provisions of
other laws. this Act shall prevail.
CHAPTER TWO
PREPARATION OF TENDER OR PROPOSAL, COMMITTEE, ETC.
5. Preparation, (1) The procuring entity shall, for each public procurement, prepare
issuance of the necessary application, tender or proposal documents for
procurement such purpose and issue those documents to Persons interested
related in submitting an application, a tender or a proposal.
(2) The applicant, a tenderer or a consultant shall submit an
application, a tender or a proposal to a procuring entity on the
basis of documents issued under sub-section (1).
(3) The procuring entity shall, in accordance with other provisions
of this Act, arrange for evaluation of the application, tender or
proposal received under sub-section (2).
6. Opening (1) The procuring entity shall, prior to the deadline for submission
Committee of the tender or proposal, appoint, for the purpose of
considering the tenders or proposals submitted under section 5
(2), a tender opening committee or proposal opening committee
consisting of the requisite number of members including one
member from the evaluation committee.
3
Inserted vide section 2 of Public Procurement (Amendment) Act, 2009 (Act 33 of 2009) [ effective
from 25 February, 2009]
4
(2) The tender or proposal opening committee, constituted under
sub-section (1), shall perform its responsibilities as prescribed.
7. Evaluation (1) The procuring entity shall, prior to the specified date for
Committee submission of tender or proposal, constitute a tender evaluation
committee or proposal evaluation committee with officers from
within and outside of the procuring entity:
Provided that tenders or proposals for a particular procurement
shall not be evaluated by more than one evaluation committee.
(2) The number of members of the evaluation committee, its
responsibilities and modus operandi shall be as prescribed by
rules.
(3) Each member of the evaluation committee shall, when signing
the evaluation report -
(a) individually sign a declaration of impartiality; and
(b) collectively certify that the tenders or proposals have
been evaluated following the provisions of this Act and
the rules made thereunder.
(4) In the case of dissent by any member of the evaluation
committee as to the recommendation for award of contract or
the evaluation proceedings, it shall mentioned in the evaluation
report, and the approving authority shall take appropriate
decisions after examining the reasons of dissent as stated in
the report.
(5) The evaluation committee shall, having sealed the evaluation
report along with recommendations in one envelope, submit
the sealed envelope directly to the approving authority:
(6) Where the approving authority under sub-section (5) is the
Minister, or the Cabinet Committee on government purchase
constituted by the government, the evaluation report shall be
submitted to the aforesaid Minister or to the Committee
following the prescribed procedures.
8. Approval of The approving authority, as specified in the delegation of financial
tender or powers, may approve the recommendations of a tender or proposal
proposal, etc. evaluation committee, or reject the same explaining the reasons
thereof, and direct that the tender or proposal be re-evaluated or
reprocessed.
CHAPTER THREE
PRINCIPLES OF PUBLIC PROCUREMENT
Part – 1
General Guidelines
9. Public The Government shall ensure that this Act, and the rules, orders,
accessibility of directives, guidelines issued under this Act, and such other
Procurement procurement-related papers or documents as may be required by the
Act, etc. general public, are made available to them and properly preserved.
10. Forms of (1) Communications by or with a procuring entity during
communication procurement proceedings under this Act shall be in writing.
(2) Communications under this Act may be in writing or by
electronic means or by both.
11. Preparation of (1) The procuring entity shall, for the purpose of carrying out
5
procurement procurement under a project to be implemented with funds
plan, etc. from the development budget of the Government, prepare an
annual procurement plan updated on the basis of the overall
procurement plan as annexed to the concerned project
document approved by the government
(2) The procuring entity shall, for the purpose of carrying out
procurement under the revenue budget of the Government,
prepare an annual procurement plan.
(3) Each annual procurement plan prepared under sub-section
(1) and (2) shall require the approval of the head of the
procuring entity or an officer authorised by him.
(4) The procuring entity shall arrange to publish the procurement
plan prepared under this section, following the direction
issued by the government from time to time, for the
information of all concerned.
(5) The procuring entity shall not generally split a single
procurement work into more than one package, but in order to
facilitate a particular procurement activity it may split a single
procurement work into more than one package, and packages
into more than one lot.
(6) If a single procurement work is split into more than one
package under sub-section (5), the procurement proposal for
each of the packages shall be placed before the authority
competent to approve the sum-total of those packages, for the
award of contract for any one of those packages.
12. Procurement (1) The procuring entity shall, while preparing documents for
related inviting pre-qualification applications, tenders, quotations or
document proposals for the purpose of carrying out procurement, use the
standard documents prescribed by the government from time
to time taking into account the essential elements of the
procurement.
(2) The standard document under sub-section (1) shall be used
after being adapted only in the places as specified in the
document.
13. Competition in (1) The procuring entity shall, to ensure competition in
Procurement procurement on the basis of impartial and objective terms,
provide all necessary information to all prospective applicants,
tenderers or consultants required for the preparation of the
application, tender, quotation or proposal.
(2) The criteria for qualifications assessment and evaluation shall
be clearly stated in the tender or proposal document and it
shall be ensured that the applicant, tenderer or consultant is
allowed at least the minimum time, compatible with the
procurement method, in which to properly.
14. Determination of In the tender or proposal document -
tender validities, (a) the tender or proposal validity period shall be
submission of determined in a way sufficient to complete the evaluation
security deposit, of tenders or proposals, and a comparative assessment,
etc. and to obtain all necessary approvals so that the
notification of award of contract can be issued within
such validity period:
Provided that for the first extension of validity period, the
approval of the head of the procuring entity and for the second
6
extension of validity, the approval of the next higher level of
authority shall be obtained;
(b) in the case of procurement of goods and works, the
specified amount of tender security and, the specified
rate and the prescribed procedure for submission of
performance security shall be stated; But the submission
of tender security shall not be mandatory for tenderers in
the case of Limited Tendering Method or Request for
Quotation Method;
(c) in the case of goods and works contracts, the manner in
which any retention security, where applicable, will be
deducted and reimbursed letter on, shall be specified;
(d) in the case of services contracts relating to service
procurement, no person shall be required to submit a
proposal security or a performance security, the type of
any indemnities or any insurance, or both indemnities
and insurances are to be provided by the consultant
shall be specified.
15. Preparation of (1) The procuring entity shall, for the purpose of creating impartial
specifications and open competition among tenderers, in preparing technical
and terms of specifications and descriptions of the goods and related
reference services, or works and physical services specified to be
procured, provide a correct and complete description of their
expected performance levels, the characteristics and required
quality ensuring that goods, works, services are procured
accordingly; but it shall be ensured that such description are
not restrictive.
(2) A procuring entity shall, for the purpose of creating conditions
impartial and open competition among consultants, in
preparing the terms of reference of the consultants, provide a
correct and complete description of the intellectual and
professional services to be procured; but no such condition
shall be imposed that may restrict the competition.
16. Social Issues No procuring entity shall include any condition inconsistent with
provisions relating to standard wages of workers and pertaining to
social benefits, occupational health and safety, and prohibition of
child labour.
17. Translation and No one shall, without the prior approval of the Government, be
publication of permitted to publish or translate rules, orders, directives or
documents procurement-related documents issued under this Act.
18. Maintaining (1) A procuring entity shall, except where the evaluation
confidentiality of committee seeks clarification from a Person, maintain the
procurement confidentiality of the process from tender opening or proposal
process. opening leading up to an award of contract.
(2) Any effort by a Person to influence the procurement process
shall result in the rejection of that person’s pre-qualification,
tender, proposal or quotation.
19. Rejection of (1) The procuring entity may, subject to the specification in the
tenders, tender or proposal document, reject all tenders, proposals or
proposals or quotations at any time prior to the issue of the notification of
quotations. award of contract, following the prescribed procedures.
7
4
[(a) Notwithstanding any stipulation in sub-section (1), in case of
domestic procurement of works not exceeding taka 2 (two)
crore under Limited Tendering Method, the official estimate of
the work shall be disclosed;
4
Inserted vide section 2 of Public Procurement (Amendment) Act, 2010 (Act 36 of 2010)
8
(2) The authority empowered by the government in this behalf
may review post procurement activities carried out by a
procuring entity.
(3) The review under sub-section (1) & (2) shall follow the random
sample method and the outline of such method may be
prescribed by rules.
Part-2
Participation in procurement process
25. Non- The procuring entity shall not, unless the Government otherwise
discrimination decides, exclude a Person from participation in public procurement
on the basis of colour, nationality or race, or any criterion not related
to the qualifications as specified in the procurement-related
document or any decision taken against a Person under this Act.
27. Joint venture (1) Any Person may, individually or in joint venture along with
another person or persons, national or foreign, submit an
application, an expression of interest, a proposal or a tender.
(2) In the prequalification, expression of interest or tender or
proposal document under this section, no such condition shall
be imposed making it mandatory to submit an application, an
expression of interest, a proposal or a tender under joint
venture.
(3) In the case of a joint venture among persons, all such persons
shall be jointly and individually liable to the procuring entity.
28. Conflict of (1) A person or an organisation and any of its affiliates shall, if
interest previously engaged by a procuring entity to provide intellectual
and professional services for preparation or implementation of
a project, be ineligible to supply goods, execute works or
provide services directly arising or resulting from that project.
(2) Notwithstanding anything contained in sub-section (1), the
provision of this section shall not apply to a person if it is
involved in the execution of a turnkey or design and
construction contract as a contractor.
Part-3
5
First and the second proviso of subsection (1) replaced vide section 3 of Public Procurement (Amendment) Act,
2010 (Act 36 of 2010)
9
Complaints and Appeals
29. Right to (1) If a person suffers or is likely to suffer loss or damage due to
complain failure of a procuring entity to fulfil its obligations under this
Act, he may complain against that procuring entity to the
authority as specified in section 30.
(2) No complaint under sub-section (1), shall be made on the
basis of the following cases, namely:—
(a) choice of procurement method for goods, works or
services, or
(b) a refusal to short-list an applicant; or
(c) where the following decisions have been made -
(i) a decision to reject applications for pre-
qualifications, tenders, quotations or proposals; or
(ii) a decision to award a contract following approval
by the Cabinet Committee on Government
Purchase.
30. Lodging (1) A complaint to be lodged under section 29 shall be submitted
complaint to the to the administrative authority of the relevant procuring entity
administrative and any complaint so lodged, shall be considered and
authority, disposed of by that authority within the prescribed time limit.
appeal, etc
(2) In the event that a person is not satisfied with the decision of
the administrative authority or that authority fails to give a
decision in due time, the aggrieved Person may appeal to the
review panel through the Government or any authority
designated by the Government.
(3) The government may, for the purpose of reviewing an appeal
and give decisions under Section 30(2) constitute one or more
review panel(s) consisting of well-reputed specialists in legal,
management, and procurement matters and well-reputed
specialists having technical knowledge in the procurement of
relevant goods, works or intellectual and professional services:
Provided that no one in the service of the republic shall be
included in the review panel.
(4) The procedures for submission of an appeal and its disposal
under this section shall be prescribed by rules.
CHAPTER FOUR
Methods of Procurement for Goods, Works, Etc. And Their Use
Part-1
Domestic Procurement
31. Application of (1) The procuring entity shall, for procurement of goods, related
open tendering services, works or physical services, use the Open Tendering
method for Method as the preferred method, subject to fulfilment of the
procurement of following conditions, namely,-
goods, works (a) determining prequalification, if applicable;
etc.
(b) providing opportunity to tenderers for competition under
equal and non-discriminatory terms;
(c) inviting tenders through advertisement following the
provisions of section 40;
(d) allowing the prescribed minimum time for submission of
10
tenders and supply of goods or of works;
(e) signing a contract with the lowest evaluated responsive
tenderer.
(2) The implementation procedures of the method mentioned in
sub-section (1) may be prescribed by rules.
32. Use of other (1) The procuring entity may, for procurement of goods, related
procurement services, works or physical services, use any one of the
methods for following methods, other than the one mentioned in section 31,
procurement of with the approval of the head of the procuring entity, or an
goods, works officer authorised by him, when considered justified on
etc. technical or economic grounds, namely-
(a) Limited Tendering Method may be used in the following
cases, namely—
(i) goods, related services, works or physical services by
reason of their specialised nature are available only
from a limited number of suppliers or contractors;
(ii) in order to reduce stock requirements of spare parts
and maintenance costs, if there is an established
government policy regarding standardisation of a
brand;
(iii) the time and cost required to receive and evaluate a
large number of tenders would be disproportionate
when compared to the value of the contract :
Provided that for clauses (i) and (ii), no price limit shall apply
and all suppliers or contractors shall be invited to tender, and
that clause (iii) shall apply subject to use of enlisted suppliers
or contractors and a threshold value as prescribed.
(b) Direct Procurement Method may be used in the following
cases, when this method is not resorted to for avoiding
possible competition or in a manner which would
constitute a means of discrimination among tenderers,
namely -
(i) when for technical reasons, a sole tenderer is
available for the supply or provision of the goods,
related services, works and physical services;
(ii) direct contract with the local community with related in
projects poverty alleviation objectives if provided for in
the project document;
(iii) for additional procurement of goods, works or services
by the original supplier, or contractor under conditions
as prescribed;
(iv) for procurement of goods under exceptionally
advantageous conditions, provided that those are of
the latest production, unused and are covered by
manufacturer’s warranty, or procurement of
perishable commodities on market terms; or purchase
of essential goods in which the government
determines the purchase price rate;
(v) unless the government otherwise decides, purchase
of goods in special cases from a government-owned
industry or factory using the government’s own funds;
(vi) procurement of goods, works, services of very urgent
or essential nature within the amount as prescribed.
11
(c) Two-Stage Tendering Method may be used in the following
cases-
(i) for large and complex projects, if at the outset of the
procurement process it is not feasible on the part of
the procuring entity to prepare complete technical
specifications of the object to be procured; or
(ii) when alternative technical solutions are available in a
rapidly evolving industry.
6
[(cc) If Two Stage Tendering Method as mentioned in sub-
section (c) is not applicable, Single Stage 7 {Two
Envelop Tendering} Method may be applied.]
(d) Request for Quotation Method may be used, subject to the
prescribed price limit, in the following cases, namely-
(i) procurement of standard off-the-shelf low value goods
or physical services readily available in the market;
(ii) procurement of goods urgently required for
maintenance or emergency repairs in a public sector
utility’s’ own operations and maintenance workshop;
(iii) procurement of goods required for processing and
production plants in state-owned industries.
(2) In the case of procurement using any method under sub-
section (1), a procuring entity shall properly record in a file the
reasons for use of that method and preserve such records.
(3) The outline and implementation procedures of the methods
mentioned in sub-section (1), shall be prescribed by rules.
Part-2
International Procurement
33. Application of where it is not feasible to undertake any procurement by inviting
open tendering competitive tenders within the country and it reasonably appears to it
method in that effective international competition cannot be ensured unless
international special efforts are made, the procuring entity shall apply the open
competition for international procurement method in accordance with the provisions
procurement of of chapters three and six, and, where applicable, after determining
goods, works, the prequalification of the tenderers by fulfilling the following terms
etc. and conditions, namely:—
(a) the Invitation for tender notice shall be published in the
English and advertised in accordance with section 40 of
this Act;
(b) tender documents shall be prepared in the English;
(c) In preparing the tender document the procuring entity
shall consider the following matters, namely —
(i) The specified minimum time is provided for
submission of tenders;
(ii) technical specifications, to the extent compatible
with national requirements, are determined on the
basis of international standards or standards
widely used in international trade;
6
Inserted vide section 5 of Public Procurement (Second Amendment) Act, 2009 (Act 65 of 2009)
7
Replaced vide section 4 of Public Procurement (Amendment) Act, 2010 (Act 36 of 2010)
12
(iii) tenderers are permitted to express their tender
security and performance security, in a currency
or concurrencies widely used in international
trade;
(iv) tenderers are instructed to express their tenders
only in Taka for local inputs;
(v) provision for payment of the contract price is made
in the currency or currencies as mentioned in the
contract;
(vi) general and particular conditions of contract
similar to those used in international trade are set;
(vii) 8 [provision for domestic preference at rates as
prescribed by the rules is made, in the case of
supply of goods at final destination exclusive of
customs duties and taxes, and, in the case of
works inclusive of all customs duties and taxes :
Provided that the tenders for supply of the
concerned goods, and the tenderers for works
meet the prescribed requirements for application
of such preferences;
Provided that application of domestic preference
cannot be made compulsory and for relaxation of
domestic preference, obtaining recommendation
of Cabinet Committee on Economic Affairs would
be required.]
9
(viia) [For application of domestic preference under
sub- section (c) -
(i) In case of Goods, the Tender concerned and
(ii) In case of Works, the Tenderer concerned has
to meet the prescribed conditions.]
(viii) joint ventures with local partnerships are
encouraged, but shall not be imposed as a
mandatory condition;
(ix) alternative methods for dispute resolution are
incorporated for the supply and installation in the
case of large or complex contracts;
Provided that International Arbitration provisions
shall be made applicable for final resolution of
disputes as provided for in the tender documents.
34. Application of (1) The two-stage tendering method may be applied in the
two stage procurement of goods, related services, works or physical
tendering services if the following circumstances, namely:-
method, (a) the grounds for which the method is applicable under
quotation and the provisions of section 32 (1) (c);
other methods in
(b) If it reasonably appears to the procuring entity that it
international
cannot be procured by means of inviting competitive
competition for
tender within the country;
procurement of
goods, works, (c) If it reasonably appears to the procuring entity that
etc. effective international competition cannot be ensured
8
Replaced vide section 6 of Public Procurement (Second Amendment) Act, 2009 (Act 65 of 2009)
9
Replaced vide section 5 of Public Procurement (Amendment) Act, 2010 (Act 36 of 2010)
13
unless special efforts are made.
(2) If it is necessary to procure divisible commodities in bulk from
the international market, considering the supply and demand at
a particular point in time, procurement of such commodities
may be under taken by means of the quotation method, under
the following process, namely: –
(a) in order to take advantage of favourable market
conditions, arrange to procure through award of more
than one contract the total requirement for those
commodities to be obtained over a given period of time,
splitting such requirements into appropriate packages;
(b) listing qualified tenderers for a given period of time to
be specified by the procuring entity, inviting them at
specified intervals in line with demand to quote prices
for the relevant goods consistent with the prevailing
international market price at a particular point in time
just prior to shipment;
(c) inviting tenderers to compete on handling or
transportation charges of commodities and other terms
and conditions specified by the procuring entity;
(d) inviting quotations for submission of tenders specifying
a short period of time and its validity periods.
(3) Notwithstanding anything contained in sub-section (1) & (2), a
procuring entity may in cases where a commodity is being
funded under a loan, credit or grant agreement by a foreign
government or an agency, invite tenderers to compete on
handling and transportation charges, specifying a short period
of time and its validity periods of tenders.
(4) International Limited Tendering Method may be used when
goods, related services, works or physical services by reason
of their specialised nature are available only from a limited
number of suppliers or contractors.
(5) International direct procurement method may be used when for
technical reasons a sole tenderer is available for the supply or
provision of the goods, works or services or for additional
procurement of goods, works or services through the original
supplier or contractor under conditions as prescribed.
(6) The outline and implementation procedures of the methods
mentioned in sub-sections (1), (2), (4) & (5) may be prescribed
by rules.
Part - 3
Framework Contract, etc.
35. Procurement for (1) Bangladesh Embassy, High Commission, or Mission abroad
Embassies and may procure low priced easily available standard goods and
in special cases unforeseen urgent physical services by means of the
for National Request for Quotation Method under section 32(1) (d),
Carriers subject to prescribed limit.
(2) The procurement of fuel or spare parts or urgent repairs by
national carriers outside the territory of Bangladesh, which
cannot be planet in advance or where there is an urgency to
bring the carrier back into service without delay, may be
undertaken using the Direct Procurement Method
14
mentioned in section 32(1) (b).
36. Framework (1) The procuring entity may, in cases where it requires to procure
contract commonly used goods on a periodic basis in substantial
quantities or recurrent physical services apply either the open
or the Limited Tendering Method in order to conclude a
framework contract with one or more suppliers or tenderers.
(2) In the procuring entity requires to procure goods and related
services identical to those for which another procuring entity
has already concluded a framework contract, such
procurement may be undertaken under the contract already
concluded.
(3) The procuring entity shall, for procurement of goods and
related services under a framework contract, use standard
tender documents adapted as required, and follow the
guidelines issued by the government from time to time.
CHAPTER FIVE
METHODS OF PROCUREMENT FOR INTELLECTUAL & PROFESSIONAL
SERVICES AND THEIR USE
Part -1
Domestic Procurement
37. Methods to be (1) The procuring entity shall, for procurement of intellectual and
followed in professional services, use one of the following preferred
procurement of methods, preceded by short-listing of applicants interested in
intellectual and providing intellectual and professional services, namely:–
professional
services
(a) In the case of Quality and Cost Based Selection, the
selection of consultant through a competitive process
among short-listed consultants considering the quality
and the probable cost of the services judiciously; or
(b) In the cases of fixed Budget Selection, selection of
consultant for simple and specific nature of service
consideration the budget allocation as stated in the
request for proposal document.
38. Use of other (1) Any of the following methods, other than the method
methods for mentioned in section 37, may be used with the approval of the
procurement of head of the procuring entity or an officer authorised by him,
intellectual and for procurement of intellectual and professional services,
professional namely:-
services
(a) Least Cost Selection method, in cases where the
services is of standard or routine nature, and where the
cost of the services is within the threshold value as
prescribed;
(b) Community Service Organisation Selection, in cases
where overall knowledge of community needs, local
issues and community participation are paramount in
the preparation, implementation and operation of
community development projects;
(c) Single Source Selection method, in the following cases-
(i) If necessary in continuation of on-going or just
15
completed assignments;
(ii) low value small assignments;
(iii) a speedy selection required in an emergency
situation;
(iv) where only a single firm has the required
qualification or rare experience required for the
assignment;
(v) if an urgent need of the services is required, in the
case of catastrophic event.
(d) Individual Consultant Selection method, in cases where
the qualification and experience of individuals are
paramount and a team of personnel and outside
professional support are not required;
(e) Qualifications based Selection method of consultants, in
cases where the assignment is of low value and within
the threshold value as prescribed and for which
preparation and evaluation of competitive proposals is
not justified;
(f) Design Contest Selection method, in cases where
technical excellence and innovation are of prime
considerations in the selection of the successful
applicant.
(2) In the case of procurement using any method under sub-
section (1), a procuring entity shall properly record in the file
the reasons for use of that method and preserve such
records.
(3) The outline and implementation procedures for the use of the
methods mentioned in sub-section (1) may be prescribed by
rules.
Part -2
International Procurement
39. Selection of (1) Where it reasonably appears to any procuring entity that no
international local consulting firm has the necessary experience and
consultants for expertise to provide the intellectual and professional services
procurement of required, it may engage in select an international consultant in
intellectual and accordance with the provisions of Chapters Three & Six and
professional using any one of the methods mentioned in sections 37 and 38
services. subject to the following conditions, namely -
(a) the request for expressions of Interest notice shall be
prepared in the English and to make arrangement for
advertisement in accordance with section 40 of this Act;
(b) the Request for Proposals document shall be prepared
in English; and
(c) considering the following aspects the request for
proposal document shall be prepared -
(i) a minimum time, as prescribed for submission of
proposals shall be allowed;
(ii) terms of reference of the consultant shall be based
upon international standards or standards widely
used in the engagement of international
consultants in consistent with national
requirements;
(iii) consultants shall be permitted to submit their
16
proposals in a currency or currencies widely used
internationally;
(iv) consultants shall be instructed to express their
proposals only in Taka for local inputs;
(v) all payments shall be made in the currency or
currencies as stated in the proposal;
(vi) general and particular conditions of contract shall
be similar to those used in the document of
international intellectual and professional services;
(vii) alternative provisions for dispute resolution shall be
provided. In this case international intellectual and
professional services;
(2) Joint ventures with local partnerships may be encouraged for
procurement of services under this section but shall not be
imposed as a mandatory condition.
CHAPTER SIX
PROCESSING OF PROCUREMENT
Part – I
Advertisement
40. Advertisement (1) A procuring entity shall prepare advertisements for
prequalification, tenders and requests for expressions of
Interest in the standard format as prescribed.
(2) A procuring entity shall directly arrange to publish the
advertisement under sub-section (1), at least one Bangla and
one English daily newspaper of wide circulation in the country.
(3) In the event that more than one edition of the newspaper is
published on the date of publication of the advertisement
under sub-section (2), the same advertisement shall be
published in each copy of every such edition.
(4) In addition to the provisions of sub-section (2) -
(a) The procuring entity shall publish such advertisement on
its own website, if any;
(b) Advertisement for procurement above a prescribed price
limit shall be published in the website of the authority
designated by the Government, from time to time.
(5) A procuring entity shall, where procurement opportunities for
goods, works or services are open to international applicants,
tenderers or consultants, also arrange to publish the relevant
advertisement in an English newspaper, or publication, of wide
international circulation, or in a UN publication, or in foreign
trade missions of Bangladesh at home or abroad, whichever
are deemed appropriate.
Part – 2
Prequalification for Procurement of Goods, Works, etc.
41. Issue and In the case of determination of prequalification by the procuring entity
submission of for the purposes of selecting a supplier or a contractor for
prequalification procurement of goods and related services, works and physical
document services, a Person shall, if interested in applying in response to an
advertisement under section 40 and having obtained the
prequalification document from the procuring entity at a price fixed by
17
it, duly complete such document and submit it by the date, time and
to the place as specified therein.
42. Opening of (1) The procuring entity shall, immediately after the deadline for
applications for submission of applications for prequalification under section
prequalification 41, convene a meeting of the tender opening committee for the
purpose of opening applications and recording details of
information provided therein.
(2) The tender opening committee shall, upon the completion of
opening, send the record of opening and all the
prequalification applications submitted, to the tender
evaluation committee for evaluation.
43. Evaluation of (1) The tender evaluation committee (TEC) shall, by applying the
prequalification qualification criteria as specified in the prequalification
applications and document, evaluate the applications received on qualified or
making of disqualified basis and submit the prequalification evaluation
decisions report to the Head of the procuring entity stating which
thereon applicants may be selected as being pre-qualified.
(2) After submission of the evaluation report under sub-section
(1), the Head of the procuring entity shall, unless he or she has
sub-delegated authority for approval pursuant to the
Delegation of Financial Powers, consider the evaluation report
and take a decision regarding the acceptance or rejection of
prequalification application of any applicant and shall notify
that decision to all concerned including the applicants.
Part – 3
Processing of Tendering for Procurement of Goods, Works, etc.
44. Sale of tender (1) A procuring entity shall, immediately after advertisement for
document and the procurement of goods, related services, works or physical
pre-tender services under section 40, arrange for sale of the tender
meeting, etc. document at a price fixed by it to all interested tenderers.
(2) The price of a tender document, under sub-section (1), shall
be fixed in such a manner so that may not exceed the cost of
printing of the document and its distribution.
(3) All prequalified applicants shall be invited to purchase the
tender document in pursuance of the provisions of sections
41, 42 and 43.
(4) A procuring entity may, in order to explain the purpose and
other conditions pertaining to a particular procurement and
obtaining information from tenderers, hold a pre-tender
meeting at such time, date and place as specified in the tender
document.
(5) All tenderers who have purchased or who intend to purchase
the tender document shall be permitted to attend the pre-
tender meeting, but the proceedings of the meeting shall be
provided only to tenderers who have purchased the tender
document.
45. Amendment of (1) A procuring entity may, at any time prior to the deadline for
tender submission of tenders either at its own discretion or in
documents response to a query from a tenderer who has purchased a
tender document or as a result of the pre-tender meeting,
modify or amend a tender document and in case any such
modification or amendment is made, it shall become an
18
integral part of the tender document.
(2) If any modification or amendment under sub-section (1) is
made within less than one-third of the time allowed for
preparation of tenders by the procuring entity, the deadline for
submission of tenders shall be extended in such a way that
the tenders may get enough time for considering the
modification or amendment.
46. Preparation and (1) A tenderer shall, in preparing its tender, ensure the following
submission of matters, namely: —
tender
(a) whether it is duly signed by a authorised person;
(b) whether it is submitted in a sealed envelope;
(c) whether it is properly marked as stipulated in the tender
document ; and
(d) whether it is submitted at the prior to the deadline and the
specified place.
(2) The tenderer itself shall bear the expense and risk of tender
preparation and submission.
(3) A tender received after the deadline for submission of tenders
as specified by the procuring entity shall be returned
unopened to the tenderer.
(4) A tenderer shall, having submitted its tender, be permitted to
amend, substitute or withdraw its tender in accordance with
the procedures laid down in the tender document at any time
prior to the deadline for the submission of tenders as specified
by the procuring entity.
(5) In the case of invitation for tenders above the prescribed price
limit, arrangements for submission of tenders at more than
one location may be made, if necessary.
47. Opening of (1) A tender opening committee shall, immediately after the
tenders deadline for submission of tenders and at the place stated in
the tender document, open tenders in the presence of
interested tenderers or their authorised representatives who
choose to attend.
10 11
[Provided that after submission of tender under {Single Stage
Two Envelop Tender} Method following subsection (i)(cc) of
section 32, the Opening Committee shall open the technical
proposals and until completion of evaluation of the technical
proposals and approval of the evaluation report by the Head of the
Procurement Entity or a person authorized by him, shall keep the
financial proposals in a secure place.]
10
Inserted vide section 7 of Public Procurement (Second Amendment) Act, 2009 (Act 65 of 2009)
11
Replaced vide section 6 of Public Procurement (Amendment) Act, 2010 (Act 36 of 2010)
19
tender evaluation report.
(2) For determining the lowest evaluated price:
(a) applicable taxes and VAT in the case of domestic
procurement of goods and related services, works and
physical services shall be included; and
(b) applicable customs duties, taxes and VAT in the case of
imported goods under International procurement shall
be excluded, but in the case of locally manufactured
goods only VAT shall be excluded; and
(c) applicable customs duties, taxes and VAT for the
execution of works shall be included under International
procurement.
(3) For the purpose of evaluating tenders, if any evaluation
criteria, other than the criteria for determining the lowest price
are mentioned, the evaluation shall be completed quantifying
those criteria in monetary terms as far as practicable.
49. Not to negotiated (1) A tender evaluation committee shall, during the evaluation of
or amend tender tenders, under section 48, ensure that:
as a precondition. (a) a tenderer is not selected by lottery;
12
[Provided that in the case of domestic procurement
of Works 13{not exceeding taka 2 (two) crore under
Limited Tendering Method}, if there is a tie in the
lowest evaluated rates, then application of Lottery
may be resorted to, as a special case, for determining
the lowest evaluated tenderer;] and
(b) negotiations are not held with the lowest evaluated
tenderer or with any other tenderer :
Provided that, in the case of procurement of any divisible
commodity in bulk and subject to a provision in the invitation
for tender for partial supply of any such commodity, if the
lowest responsive tenderer does not submit a tender for the
total quantity of such commodity as specified in the tender
document, then in the first place, the lowest tenderer may be
given an offer to supply the total quantity as specified in the
tender document at its quoted price and in case it declines to
supply the total quantity in response to that offer, then in order
to procure the remaining quantity of the commodity as per the
tender document the second, the third and, if deemed
appropriate, the next responsive tenderers may be given
offers by turns to supply the balance quantity at the price
quoted by the lowest tenderer.
(2) Notwithstanding anything contained in sub-section (1) (b),
under no circumstances negotiations shall be made in regard
to alteration of the lowest responsive price, and according to
the provision specified in the proviso to that sub-section, the
excess goods of the quantity of total supply for which the
tender has been invited shall not be accepted.
(3) A tender evaluation committee shall not, as a condition for
award of contract, instruct a tenderer to undertake
responsibilities not stipulated in the tender document and
12
Inserted vide section 8 of Public Procurement (Second Amendment) Act, 2009 (Act 65 of 2009)
13
Replaced vide section 7 of Public Procurement (Amendment) Act, 2010 (Act 36 of 2010)
20
change its tendered price or otherwise modify any other
condition of its tender.
50. To verify post- A tender evaluation committee shall, prior to completion of the
qualification of evaluation report under section 48, verify in accordance with the
tenderers post-qualification criteria as specified in the tender document
whether the responsive tenderer has the requisite qualifications and
financial capability to effectively carry out the contract.
51. Approval process (1) A tender evaluation committee shall submit the evaluation
report with its recommendation as regards the evaluation of
tenders to the approving authority in accordance with the
provision of section 7(5).
(2) The approving authority shall, having considered the report of
the evaluation committee, take a decision with regard to the
tender and communicate the decision to all concerned
including the procuring entity without delay.
52. Notification of (1) The procuring entity shall, prior to the expiry of the tender
award of contract validity period, and provided that no complaint is being
and signing of considered under sections 29 and 30 of this Act, issue a
contract notification of award of contract to the successful tenderer.
(2) The tenderer shall, upon receipt of the notification under sub-
section (1), and having submitted the performance security in
favour of the procuring entity within the time indicated in the
notification of award, sign the contract in the format as
specified in the tender document.
53. Completion of A procuring entity shall, following the signing of the contract with the
the tendering successful tenderer, notify in writing all the other tenderers that they
process have been unsuccessful and return their tender security.
Part-4
Processing of Applications in response to Requests for Expressions of Interest
and Proposals for Procurement to Intellectual and Professional services.
21
56. Evaluation of (1) A proposal evaluation committee shall, on the basis of the
applications and criteria stated in the Request for Expressions of Interest,
approval of short evaluate the applications received and submit an evaluation
list, etc. report with recommendations to the head of the procuring
entity stating which applicants may be considered for
inclusion in the short-list.
(2) A minimum of 4 (four) and a maximum of 7 (seven) applicants
shall be recommended in the report of the evaluation
committee, mentioned in sub-section (1), for inclusion in the
short-list.
(3) The Head of the procuring entity or an officer authorised by
him or her shall, having considered the report mentioned in
sub-section (2), approve the short-list.
(4) The procuring entity shall, upon receipt of approval under sub-
section (3), inform all applicants who submitted expressions
of interest as to whether or not they have been short-listed.
57. Preparation, issue, (1) A procuring entity shall issue the Request for Proposal
etc. of Request for document for procurement of intellectual and professional
Proposal document services to the short-listed applicants.
(2) Each applicant shall, having sealed its technical and financial
proposals in two separate envelopes and having placed both
in one sealed outer envelope, submit it by the time and to the
place as specified in the proposal document.
(3) The applicant itself shall bear all the expenses and risk of
preparation and submission of a proposal.
(4) A proposal received after the deadline for submission of
proposals shall be returned unopened to the applicant.
58. Opening of (1) A proposal opening committee shall, after submission of
proposals proposals under section 57, open the technical proposals and
until such time as the evaluation of technical proposals has
been completed, keep the financial proposals in safe custody.
(2) A proposal opening committee shall submit the technical
proposals and the record of opening to the proposal evaluation
committee for evaluation in accordance with this Act and the
rules made in pursuance of this Act.
59. Evaluation of (1) A proposal evaluation committee shall, maintaining
proposals confidentiality and in strict compliance with the qualification
and criteria for evaluation specified in the Request for
Proposal document, examine and evaluate all technical
proposals for ascertaining the technical capability of all
applicants and shall submit the evaluation report for approval
by the Head of the procuring entity or an officer authorised by
him or her.
(2) The proposal evaluation committee shall, consequent upon
the approval of the technical evaluation under sub-section (1),
invite those Persons, determined to be technically qualified
following the examination and evaluation of their proposals,
hereinafter referred to as consultants in this chapter, at the
time of opening of their financial proposals at a place specified
by it.
(3) In evaluating the proposals, a proposal evaluation committee
shall -
22
(a) in the case of the Quality and Cost Based Selection
Method, review in detail each financial proposal and
invite the consultant that attained the highest score in
the combined technical and financial evaluation, for
negotiation;
(b) in the case of the Fixed Budget Selection Method, invite
the consultant that scored the highest technical points
within the budget, for negotiation;
(c) in the case of the Least Cost Selection Method, invite
the consultant which qualified the technical capacity
threshold and quoted the lowest cost, for negotiation.
60. Negotiation (1) The proposal evaluation committee, in order to conclude a
contract, shall complete the pre-contract negotiations with the
successful consultant on proposal implementation
methodology, work plan, training and other inputs in the
manner as prescribed.
(2) The proposal evaluation committee shall, if the negotiation
mentioned in sub-section (1) fails, negotiate with the next
highest evaluated consultant, and similarly with other
evaluated consultants until a contract is signed, but it shall not
negotiate simultaneously with more than one consultant.
(3) The applicable taxes and VAT shall not be taken into account
in determining the cost during the financial evaluation of
proposals related to procurement of intellectual or professional
services under national and international procurement.
(4) The proposal evaluation committee and the successful
consultant shall, in order to conclude the negotiations, execute
the agreed minutes of negotiation and initial the proposed draft
contract agreement.
61. Approval process (1) A proposal evaluation committee shall submit the evaluation
report, with its recommendation in accordance with section
7(5).
(2) The approving authority shall, having considered the report
submitted under sub-section (1) arrive at a decision and notify
the decision to all concerned including the procuring entity.
62. Signing of The procuring entity shall, upon receipt of approval for the signing of
contract the contract and provided that no complaint has been lodged under
section 29 and 30 of this Act, invite the successful consultant to sign
the contract.
63. Completion of A procuring entity shall, following the signing of the contract with the
the process successful consultant, notify all other consultants that they have
been unsuccessful.
CHAPTER SEVEN
PROFESSIONAL MISCONDUCT, OFFENCES, ETC
64. Professional (1) No officer or member of staff engaged in the procurement of
misconduct, goods, works or services under this Act, shall undertake or
offences, etc. attempt to undertake any procurement of goods, works or
services in contravention of any provisions of this Act or any
rules made in pursuance of this Act.
23
(2) A procuring entity shall, during procurement processing and
contract execution on contract, fraudulent, collusive or
coercive practices and similarly, a tenderer or a consultant or
a person, as defined in this Act, shall abide by the code of
ethics and ensure that neither it nor any members of its staff or
any other intermediaries working on its behalf, engage in any
such practices.
(3) An officer or a member of staff to whom this Act applies,
committing any act in contravention of sub-section (1), shall be
guilty of misconduct or corruption under rule 3 (b) and 3 (d) of
the Government Servants Discipline and Appeal) Rules, 1985
or under the Service Rules relating to general conduct and
discipline, as applicable to such officer or employee, and on
those grounds departmental proceedings may be initiated
against him.
(4) In addition to, or as an alternative to the actions under sub-
section (3), criminal proceedings against the officer or the
member of staff concerned or a Person may also be initiated
under the relevant section of the Prevention of Corruption Act,
1947 and, in appropriate cases, under the Penal Code, 1860.
(5) The head of the procuring entity may, in case it appears to him
that a Person has contravened any of the provisions of this
Act, declare such Person ineligible for further participation in
the particular procurement proceedings or in any other
procurement proceedings in future.
CHAPTER EIGHT
USE OF ELECTRONIC PROCESSING SYSTEM IN PUBLIC PROCUREMENT, ETC.
65. e-Government (1) For carrying out the purposes of this Act, any or all
Procurement government procurement under this Act may be undertaken
using electronic processing system.
(2) The electronic processing system and the principles
governing such system shall be prescribed by the
Government.
Explanation: For the purposes of this Section, ‘Electronic
Processing System’ means the online
processing of data through a website.
CHAPTER NINE
MISCELLANEOUS
66. Concession Notwithstanding anything contained in any other provisions of this
contracts – Act, the Government may, in accordance with directives and model
related contract documents issued by it, enter into a concession contract
provisions with a person for the provision and operation of public utilities and
services incidental thereto through a Build Own Operate, Build
Operate Transfer, Build Own Operate Transfer agreement with joint
public and private financing or with entirely private financing.
67. Responsibilities of For carrying out the purposes of this Act, the Government shall,
the Government through a Central Procurement Technical Unit or any other unit
24
regarding established by it, relating to procurement monitoring, coordination
monitoring, etc. and management, perform the following responsibilities, namely -
(a) providing for monitoring compliance with and
implementation of this Act through the authority as
designated by the Government;
(b) arranging for performance of the necessary functions
and responsibilities incidental thereto, through the
authority as designated by the government; and
(c) performing any other responsibilities as prescribed.
68. Special provisions (1) The Government may, in order to deal with an urgent national
relating to public need or a catastrophic event, procure for the public interest,
procurement in following the direct procurement method or any other method,
case of urgent as mentioned in section 32, for carrying out a procurement
national need, etc. activity according to the recommendation of the Cabinet
Committee on Economic Affairs constituted by it.
(2) Unless the Government otherwise decides in the interest of
national security or national defence, public procurement shall
be undertaken in accordance with this Act.
69. Protection of No suit, prosecution or other legal proceeding shall lie against the
action taken in Government or any public servant for anything which is done or
good faith intended to be done in good faith in pursuance of this Act.
70. Power to make The Government may, by notification in the Official Gazette, make
rules rules for carrying out the purposes this Act.
71. Powers of the For the purpose of removing any complications in giving effect to any
Government to provision of this Act on account of any ambiguities occurring in such
remove provision, the Government may, by notification in the Official
complications Gazette, issue a direction, clarifying or interpreting such provision in
keeping with other provisions, as to how such matters shall be dealt
with.
72. Authentic English After the commencement of this Act, the Government shall, by
Text notification in the Official Gazette, publish an authentic English text
of this Act :
Provided that in the event of conflict between the Bangla text and the
English text, the Bangla text shall prevail.
73. Repeal and (1) Rules, all other provisions or any other documents pertaining to
Savings procurement specifically mentioned in this Act, by whatever
name they may be called, shall, in so far as they are
inconsistent with any provision of this Act, stand repealed upon
the commencement of this Act :
Provided that the rules, all other provisions or any other
documents pertaining to procurement made under this Act, by
whatever name they may be called, shall not be contrary to or
inconsistent with any provision of this Act.
(2) All proceedings for public procurement entered into before the
commencement of this Act in accordance with the existing
rules, regulations shall not withstanding the repeal under sub-
section (1), be disposed of in accordance with the provisions
of those repealed rules, regulations or guidelines, as if they
have not been repealed.
(3) The Public Procurement Regulations, 2003 shall remain in
force till such time as the rules under this Act are made.
25
Working
Working draft
draft with
with
all amendments.