14. PPA Notes

Applicability of Public Procurement Act

• Applicable For:

  • All procurement (acquisitions) of:

    • Goods (movable or immovable, living or nonliving, including services incidental to the supply of such goods).

    • Consultancy services (study, research, survey, design, training, testing, software development, etc.).

    • Other services (hiring vehicles, equipment, repair and maintenance).

    • Construction works (site preparation, erection, installation, decoration, etc., including incidental services like mapping).

  • By following entities (public entities):

    1. Constitutional organs, courts, ministries, secretariats, commissions, departments of the Government of Nepal or Province Government.

    2. Corporations, companies, banks, or boards owned/controlled by the Government of Nepal or province government.

    3. Universities, colleges, research centers operated or granted (majority) by the Government of Nepal or province government.

    4. Local bodies (Village Development Committee, Municipality, or District Development Committee).

    5. Development Boards formed under the Development Board Act, 1956.

    6. Bodies operated with loans or grants from the Government of Nepal or province government.

    7. Other Bodies specified by the Government of Nepal or province government via notification in the Nepal Gazette.

• Not Applicable For:

  • Procurement related to security, strategic, or defense interests if the Government of Nepal deems the Act inappropriate, with stated reasons and separate procedures.

  • Procurement as per agreement between the Government of Nepal and a donor party, following the donor's procurement guidelines.

  • Public entities competing with private sectors for business.

• Exempted Entities:

  • Nepal Doorsanchar Company Limited.

  • Nepal Khadya Sansthan.

  • National Trading Limited.

  • Nepal Airlines Corporation.

  • Janak Shikshya Samagri Kendra Limited.

  • Nepal Aaushadhi Limited.

  • Singhadurbar Baidyakhana Bikas Samiti.

  • Jadibuti Utpadan Tatha Prasodhan Company Limited.

  • Purchase made for promotion of customs, finance, technology, etc. for trade fairs, festivals, etc. organized in foreign country.

  • Nepal embassy located in foreign country.

  • Public entities licensed to operate aviation service when procuring aviation equipment (e.g., Nepal Airlines Corporation).

• Special Circumstances:

  • Immediate procurement is allowed if further loss will occur due to special circumstances (natural or divine calamity, epidemic, drought, earthquake, flood, landslide, firing, war, or internal conflict).

  • The chief of the Public Entity must inform the one-level higher authority with details of the circumstances and procurement.

Steps Involved in Public Procurement

Step 1: Establish Public Procurement Unit

• The chief of the Public Entity is responsible for all procurements following the Public Procurement Act (PPA) procedures.

• Procurement activities must be carried out by an employee qualified by the Public Procurement Monitoring Office with procurement knowledge/training.

• A separate procurement department/section/unit must be established based on workload and nature of procurement, specifying a procurement officer to perform:

  • Preparing a procurement plan.

  • Preparing prequalification documents, bidding documents, and procurement contract documents by amending standard documents from the Public Procurement Monitoring Office.

  • Preparing consultancy service proposal documents with modifications to standard requests for proposals.

  • Publicly publishing procurement notices.

  • Issuing pre-qualification documents, bidding documents, or forwarding consultancy service proposal documents.

  • Receiving and safely keeping pre-qualification proposals, bids, or consultancy service proposals.

  • Submitting proposals/bids to the evaluation committee and evaluated bids for acceptance.

  • Notifying acceptance of proposals/bids.

  • Obtaining, examining, and safely keeping performance guarantees.

  • Examining the quality standards of procured goods, construction works, or services.

  • Making information and documents available to the Public Procurement Monitoring Office.

  • Performing other prescribed functions.

Step 2: Prepare Master Procurement Plan

• Required if the plan/project operates for more than one year or the Procurement Value is greater than NRs. 10 crores per annum.

• The master procurement plan should contain:

  • Type, quantity, and tentative estimated value of procurement.

  • Method of procurement.

  • Provisions for breaking procurement into lots or packages.

  • Tentative number of contracts to be made and major activities for procurement proceedings.

  • Matters relating to prequalification proceedings, if required.

  • Tentative time schedule for procurement proceedings.

  • Other matters determined by the Public Procurement Monitoring Office.

Step 3: Prepare Annual Procurement Plan

• Required if the Procurement Value is greater than NRs. 10 lakhs per annum.

• The annual procurement plan should contain:

  • Description of the type of procurement.

  • Possible package of procurement.

  • Time schedule of procurement proceedings.

  • Method of procurement.

  • Type of contract to be entered into.

  • Other matters determined by the Public Procurement Monitoring Office.

Step 4: Obtain Procurement Requisition

• The Procurement Unit must obtain procurement requisitions from divisions/sections with:

  • Description of type, quality, and quantity of goods.

  • Timing of procurement.

  • Estimated cost.

  • Source of financing.

• The competent authority must approve the requisition.

Step 5: Preparation of Procurement Proceedings

• Identify the need for procurement.

• Obtain market information for technical solutions and supplier availability.

• Study procedures of similar procurements from previous years.

• Use open bids as much as possible, providing equal opportunity to qualified bidders without discrimination.

• Procure from entities with a Permanent Account Number and VAT registration certificate.

• Procurement may be made from entities without VAT registration if:

  • Goods or construction works are valued at less than twenty thousand rupees.

  • Goods or services are exempted from VAT.

  • Renting a house.

  • Construction works involve consumers' committees or beneficiary communities.

• Procure goods manufactured in Nepal even if their cost is up to 15% higher than foreign goods.

Step 6: Prepare Specifications, Plan, Drawing, Design, Special Requirement or Other Descriptions

• Prepare specifications based on relevant technical and quality characteristics.

• Do not mention particular brands, trademarks, names, patents, designs, types, origins, or producer's names.

  • Exception: If unavoidable, mention such details, followed by "equivalent to".

• Descriptions should not impede qualified bidders' participation or limit competition without justification.

Step 7: Prepare or Update Cost Estimate

• Required if Procurement Value > NRs. 1 lakh (excluding construction contracts).

• Considerations when preparing cost estimates:

  • Whether all procurement acts can be done through a single contract or require separate contracts.

  • Whether the procurement contract requires renewal.

  • Alternatives to procurement.

  • Maximum amount and time for work completion.

  • Other matters determined by the Public Procurement Monitoring Office.

• Considerations when preparing cost estimates for consultancy services:

  • Ministry norms.

  • Terms of reference.

  • Actual cost incurred in similar past procurements (adjusted for price changes).

  • Remuneration of human resources.

  • Travel, accommodation, office expenses, translation costs, and printing costs.

  • Costs for training, symposiums, or travel.

• For construction work cost estimates, follow available norms for construction work or archaeological excavation and underground works.

• For rent of vehicles/equipment, form a committee of three skilled technicians. If unavailable, the superior office forms the committee.

Step 8: Approve Description and Cost Estimate

• If amendments with a variation of more than 25% of the original approved cost estimate are required, or if the process is disturbed due to erroneous design or estimate, the preparer, examiner, approver, and advisor are liable for punishment as per prevailing laws.

• No punishment is applied under special circumstances (natural disasters, war, etc.).

Step 9: Prepare or Update Standing List

• For:

  • Consultancy services if Procurement Value < NRs. 20 lakhs.

  • Consumable/capital goods, consultancy, or other service/construction work if Procurement Value < NRs. 5 lakhs.

  • Work to be carried out by NGOs.

• Importers, suppliers, constructors, consultants, NGOs, and service providers must apply with:

  • Registration Certificate

  • Permanent Account Number or Value Added Tax Registration Certificate

  • Tax Clearance Certificate

  • Other necessary documents

• Standing lists are updated yearly.

Step 10: Set Criteria for Qualification of Bidders

• Except for construction work with a cost estimate < NRs. 2 crores.

• Consider professional/technical qualifications, equipment availability, past performance, after-sale service, spare parts availability, legal capacity, financial resources, and punishment for professional offenses.

• Do not restrict participation based on class of construction entrepreneur, supplier, consultant or service provider.

• Evaluate bids/proposals based solely on criteria in the bidding documents.

• Disqualify bidders/proponents for factually false or incomplete statements (correct minor errors by seeking additional information).

• Criteria for goods supply:

  • Technical capacity.

  • Expertise for installation.

  • Assurance of smooth functioning.

  • Repair and maintenance provisions.

  • Availability of services and spare parts.

  • Skills, experience, and reliability of the supplier (with installation).

  • Nature/quantity of goods supplied in the last three years, contract price, dates, and names/addresses of entities.

  • Documents for complex goods showing checks on production capacities.

  • Certificates attesting conformity to specifications or standards.

  • Samples, descriptions, or photographs.

  • Sub-contracting proportion.

• Criteria for consultancy service:

  • Experience of the person/firm.

  • Educational qualifications and experience of key staff.

  • Mode of performance, responsiveness, technology transfer, and schedule.

  • Managerial/financial capacity.

  • Participation of native human resources (international requests).

  • Description of similar consultancy services provided in the last ten years, amount, and date.

  • Qualifications of key staff.

  • Description of managerial staff and human resources in the last three years.

  • Sub-contracting portion.

• Criteria for construction work (costing > NRs. 2 crores):

  • General experience as a prime contractor, management contract, joint venture partner, or sub-contractor.

  • Minimum average annual turnover of construction works.

  • Special experience executing construction work equivalent to a minimum amount.

  • Economic/financial capacity (liquidity, credit facility).

  • Skilled human resources.

  • Main equipment/machinery in running condition.

Step 11: Selection of Procurement Method

• For goods, construction works, or other services:

  • Open Bids (Bolpatra):

    • Procurement Value > NRs. 20 lakhs.

      • International level.

      • National level.

    • Types:

      • With prequalification.

      • Without prequalification (Construction for ≤ NRs. 2 crores)

    • Stages:

      • Single-stage.

      • Two-stage (technical, then financial).

  • Sealed Quotations:

    • Procurement Value ≤ NRs. 20 lakhs.

    • Procurement of X-ray, ECG, medicinal goods, medical equipment (≤ NRs. 50 lakhs).

  • Direct Procurement:

    • Procurement Value ≤ NRs. 5 lakhs.

    • Only one supplier/constructor/consultant/service provider.

    • Additional goods/services of a proprietary nature.

    • One public entity from another.

    • International inter-governmental entities.

    • Special circumstances.

    • Medicinal goods ≤ NRs. 20 lakhs.

    • Goods manufactured in Nepal ≤ NRs. 15 lakhs.

    • Cottage Industry ≤ NRs. 25 lakhs.

  • User's Committee/Beneficiary Group:

    • Procurement Value ≤ NRs. 1 crore.

  • Force Account:

    • Repair/maintenance of ordinary nature, petty work, or sanitation (≤ NRs. 1 lakh).

  • NGOs:

    • Procurement Value ≤ NRs. 10 lakhs: Request proposals through notice.

    • Procurement Value > NRs. 10 lakhs: Open expression of intent.

  • Lump Sum Piece Rate:

    • Construction for ≤ NRs. 2 crores.

  • Catalogue Shopping:

    • Items & Monetary Limits (with VAT):

      • Vehicles: NRs. 60 lakhs

      • Heavy Equipment: NRs. 60 lakhs

      • X-ray, MRI & other health-related devices: NRs. 40 lakhs

      • Other machineries: NRs. 25 lakhs

  • Limited Tendering:

    • Goods/construction work/consultancy/other service with limited availability.

  • Buy Back Method:

    • Not cost-effective to repair old vehicles, machineries, equipment, etc.

• For consultancy services:

  • Competitive Proposals:

    • Solicitation from consultants in Standing List: Procurement Value ≤ NRs. 20 lakhs.

    • Open expression of interest:

      • National level: Procurement Value > NRs. 20 lakhs to 10 crores.

      • International level: Procurement Value > NRs. 10 crore.

  • Direct Negotiations:

    • Procurement Value ≤ NRs. 20 lakhs (by the chief of the public entity).

    • Procurement Value ≤ NRs. 5 lakhs (by the chief of the public entity with approval from one level higher authority).

• For other services:

  • Renting of house or land:

    • Direct negotiation:

      • Rent ≤ NRs. 15 lakhs p.a. within the Kathmandu Valley.

      • Rent ≤ NRs. 5 lakhs p.a. outside the Kathmandu Valley.

    • Through public notice: More than above.

  • Contract to operate day-to-day works:

    • Direct negotiation: Service fees ≤ NRs. 5 lakhs.

  • Repair and maintenance.

Provisions Relating to Bids Process and Stage of Bidding

• Any construction works, goods or services whatsoever of which cost estimate exceeds twenty lakhs rupees.

• Invitation to bid can be made by:

  • Inviting open bids by determining prequalification.

  • Inviting open bids without determining prequalification (Construction for < 2 crores).

• The open bid may be invited in:

  • a single stage or

  • two stages (1st technical bid, if selected then only financial bid)

• Two-stage biding conditions:

  • When it is not feasible to define fully the technical aspects of the goods or construction works or services to be procured or the terms and conditions of the invitation to bid, or

  • Because of complex nature of the goods or construction works or services to be procured, it is necessary for Public Entity to discuss with the bidders about how to resolve problems related to various technical aspects or the procurement contract and about such technical aspects and conditions of contract benefits accruing there from.

International Level Bidding

• Conditions:

  • Goods or construction works are not available under competitive price from more than one construction entrepreneur within Nepal.

  • No bid was submitted in response to invitation to national level bidding for the procurement of goods, construction works or other services, and the same has to be procured from abroad.

  • Under an agreement with a donor party, foreign goods or construction works have to be procured from foreign assistance source.

  • The Public Entity has certified that the goods or construction works, being of complex and special nature, have to be procured through an international level bidding.

Prepare Prequalification Documents

• The matters to be included in the prequalification documents are as follows:
  * Qualification required for the proposed work and in the case of a joint venture, the qualification of the partners
  * Documents and information to be submitted by a bidder to prove his/her qualifications and eligibility
  * If procurement requires to be made by making separate lot or package of goods or construction work, such lot or package,
  * Method of preparing proposal,
  * Process of evaluating pre-qualification proposal
  * Major conditions of procurement contract,
  * Such matters specified from time to time by the Public Procurement Monitoring Office as required to be included into the pre-qualification documents, and
  * Method, place, deadline for submitting pre-qualification proposal.
  * The Public Entity shall provide the prequalification documents required to submit proposal to all persons, firms, companies and organizations that request for such document.
  * The selection of the qualified applicant shall be made on the basis of the qualification criteria set forth.
  * The Public Entity shall openly publish a list of the applicants so selected and send the same to all applicants.
  * If any applicant whose prequalification proposal is rejected, requests for the information of the reasons for the rejection of his or her proposal, within thirty days of the notice being given, the concerned Public Entity shall have to provide such information to him or her.

Prepare Bidding Document

• Bidding Document means a document prepared by the concerned Public Entity making invitation to bid for submission by bidders by filling up or preparing price or proposal or rate in such document and this term also includes instructions to bidders, specifications, drawing, design, terms of reference, schedule of work, evaluation criteria, bill of quantities, conditions of contract and similar other documents.

• The bidding documents shall contain the following matters:
  * The nature of procurement, time required for procurement and technical specifications thereof,
  * Where bids are invited without carrying out prequalification, the criteria for qualification of bidders,
  * Where there is provision of site visit, information relating thereto,
  * If any bid conference has to be held prior to submission of bid, information relating to such conference,
  * Instructions for preparing and submitting bids, the place for the submission of bids, the deadline for the submission of bids and the place, date and time for the opening of bids,
  * Component of price, the currency or currencies in which the bid price may be stated, the currency and the source and date of the related exchange rate to be used for comparison of bids,
  * The criteria and methodology for the evaluation of bids and the selection of bidder,
  * The preferences to be given, if any, for domestic goods and local construction entrepreneurs, provision relating thereto,
  * Where any goods or construction works are to be procured by making separate lots and packages, such lots and packages and the manner of evaluation thereof,
  * Where alternatives to the technical specifications are also invited, the manner of evaluation of such alternatives,
  * Where a bid can be submitted even only for a portion of the goods, construction works or services to be procured, a description of such portion or portions,
  * The validity period of bid,
  * The amount, type, acceptable form and validity period of security to be furnished for bid, performance or other necessary matters,
  * Where a bid security is required, provision that the period of that security shall exceed by thirty days to the validity period of bid
  * Performance guarantee to be kept as:
  * Bidder accepted amount up to 15% less than estimated: 5% of accepted amount
  * Bidder accepted amount more than 15% less than estimated: $5\% \text{ of accepted amount } + 50\% \text{ of amount which he had accepted below } 15\%$
  * Financial and technical details submitted by the bidder in any public entity,
  * If such bidder had accepted and initiated any work with any other public entity, details about such entity, work, amount of contract and work progress,
  * The terms and conditions of the procurement contract under Section 52 and the modality of coming for the entry into force of that contract,
  * Information that bids shall not be processed in the event of conflict of interest or information relating to legal action for fraud or corruption,
  * Provision that any bidder may make an application, for review, against any error or decision made by the Public Entity in carrying out bid proceedings,
  * Provision that the documents proving technical capacity and financial proposal (bid price) have to be submitted in one envelope
  * Such other matters determined by the Public Procurement Monitoring Office as to be involved in the prequalification documents or bidding documents.
  * The Public Entity shall make available the bidding documents upon collection of the charges as prescribed to any person, firm, organization or company that requests for the bidding documents in accordance with the notice for invitation to bids, and where prequalification is required to participate in the procurement proceedings, to those persons, firms, organizations or companies that have been pre-qualified and request for such documents.
  * In case of two staged bidding while inviting the first stage bid, the bidding documents shall state the purpose of procurement, expected performance, broad specifications and other broad features and the qualification of bidders, and state that bidder shall not be required to quote the price in his/her bid and shall submit only technical proposal and comments on the terms and conditions of the proposed procurement contract.

Publish Notice for Invitation of Bids or Prequalification Proposals

• Publish in a daily newspaper of national circulation and, in the case of an international bid; it may also be published in any international communication media.

• English language for international bidding notice, and documents.

• Place in website of the concerned entity or that of the Public Procurement Monitoring Office:

  • Mandatory: Central Level Public Entity

  • Optional: District Level Public Entity

• Notice on invitation to bid or prequalification proposal shall contain the following matters:

  • The name and address of the Public Entity inviting bid,

  • The nature of and time limit for procurement work and the place of delivery of the goods to be supplied, the services to be delivered and the construction work to be performed,

  • If bid security is required, the amount and validity period thereof,

  • Where bid security is required, the amount and validity period of the bid,

  • The place, manner of obtaining the bidding documents or prequalification documents, and the fees charged,

  • The place, manner, the deadline for the submission or forwarding of the bidding documents or prequalification documents,

  • The place, date and time for the opening of bids, and matter that the bidders or their authorized agents shall be invited to attend the opening of bid, and

  • Other matters as prescribed.

• Period to be given for submission of bid documents:
  * Initially: National Level
  $30 \text{ Days}$
  * Initially: International Leve
  $45 \text{ Days}$

• In making procurement through an international level bidding, the Public Entity may give domestic preference to the Nepalese entrepreneurs and businesspersons. A, where domestic preference is to be so given, that matter shall be set forth in the notice on invitation to bid and the bidding documents.Preference shall be given to the domestic firms, organizations or companies that participate solely or in joint venture with domestic firms, organizations or companies in the case of an international bidding.

• In giving preference, the proposal of a domestic firm, organization or company whose bid price exceeds by up to $5 \%$ of the bid price offered by a foreign firm, organization or company that offers the lowest price may be accepted.

• A foreign bidder, while submitting bid, shall have to state whether he/she has appointed any agent in the State of Nepal or not and where an agent is appointed, the details as prescribed in relation to the agent shall also be set forth in the bid.

• Where a foreign bidder enters into joint venture with a domestic construction entrepreneur, in the case of procurement of public construction work, preference may be given to such a foreign bidder.

• The public entity shall mention the following validity period of tender or proposal of consultancy service in the tender documents or request for proposal documents:
  * Cost estimate: No. of days: Within 10 crores
  $90$

  • Cost estimate: No. of days : Above 10 crores
    $120$

Clarification as to Unclear Matter on Bidding or Prequalification Documents

• Where any bidder, being unclear about any matter set forth in the bidding documents or the prequalification documents, requests, within the time period set out in such documents, for a clarification, the Public Entity shall have to communicate the information of such matter to all bidders prior to the deadline for the submission of bids or prequalification proposals.

• Where the Public Entity makes any alteration/modification in the information and the bidding documents or prequalification documents, it shall have to communicate information relating to such alteration/modification to all bidders that have participated in the procurement proceedings within a reasonable time so as to enable them to take such alteration/modification into account in submitting their bids or preparing their proposals for prequalification.

• Where it is necessary to provide additional time to bidders, the Public Entity may extend the deadline for the submission of bids or prequalification proposals.

• Organize a conference of bidders in advance of at least 10 days prior to the deadline for the submission of tender in the case of a notice of invitation to national tender and in advance of at least 15 days prior to such deadline in the case of a notice of invitation to international tender, for the purpose of briefing bidders on the tender documents, technical specifications, sites or similar other matters. (Optional).

Submission of Bids

• A bid shall have to be submitted in the specified form, duly signed by the bidder himself /herself or his /her authorized agent, in a sealed envelope by the bidder himself /herself or through his or her authorized agent or by post or courier at such place and within the last date and time as specified for the submission of bids.

• Bids received after deadline shall not be processed and such bid shall be returned unopened to the concerned bidder.

Withdrawal and Modification of Bid

• Except for bids submitted by electronic means, any bidder may, before 24 hours of expiry of the deadline for the submission of bids, make a sealed application for modification to or withdrawal of bid that a bidder has once submitted.

• In case of two staged bidding, the Public Entity may hold discussions with any or all bidders in relation to the technical bids submitted in response to the invitation to bid and may, also taking into account the discussions held, do the following in relation to the bids submitted:

  • Canceling a proposal relating to a bid that fails to meet the basic requirements required to be met in relation to procurement or fails to make minimum performance or fails to complete the work within the specified period or that cannot be modified to meet such requirements or to make such performance or to complete the work within the specified period or due to any other weakness,

  • Modifying or improving the technical specifications, evaluation criteria and terms and conditions of the procurement contract in order to increase competition,

  • Determining the evaluation system in order to determine the appropriateness of various options submitted by the bidders.

• In case of two staged bidding, after the completion of discussions, if any, the Public Entity shall make invitation to second stage bid and in making such invitation to bid, the bidders whose bids have not been cancelled shall be invited to submit bid along with price in accordance with revised bidding documents.

Bid Security

• Security means retention money or earnest money furnished as security pending the completion of any obligation/work, and this term also includes bid security or performance security or an amount furnished for security required to be so furnished for any other reason.

• A bidder shall provide as prescribed bid security along with the bid and such security may be forfeited under following conditions:

  • If the bidder requests for modification or withdrawal of bid during the validity period of bid, after the deadline,

  • If the bidder refuses to accept the correction of arithmetical errors found in the bid,

  • If the selected bidder fails to sign the procurement contract in accordance with the terms and conditions set forth in the bidding documents,

  • Where the bidder fails to furnish the performance security as set forth in the bidding documents within the time for signing the procurement contract,

  • If the bidder has changed the bid price or substantive matter of the bid while providing any information in response to clarification sought by the Public Entity pursuant in the course of examination of bids.

  • If any act contrary to conduct is committed.

• After the conclusion of a procurement contract, the Public Entity shall return the bid security of the bidder who has signed the procurement contract and the bid security of those bidders whose bid security is not liable to forfeiture.

Opening Of Bids

• The Public Entity shall have to open bids as prescribed at the time and place specified in the bidding documents on the same day immediately after expiry of the deadline for the submission of bids.

• The chief of public entity shall form a committee under convenorship of the procurement official and consisting of at least two members to open the bids or proposals registered with the public entity, and cause such bids or proposals to be opened in presence of the bidders or their representatives at the pre-determined time. Provided that nothing shall bar the opening of bids or proposals for the sole reason that a bidder or his or her representative is not present.

• The public entity shall, open the envelope of every bid which is requested by the bidder for withdrawal and read out the name of such a bidder and then open all envelopes submitted for modification of bids and read out the content inside such envelopes.

• Then after the public entity shall open every submitted bid one by one, and read out contents of such a bid, prepare a record (Muchulka) thereof and cause such a record (Muchulka) to be signed by the concerned bidder or his or her representative who is present.

Examination Of Bids

• The Public Entity shall have to submit to the evaluation committee the bids opened above and the committee shall, prior to evaluating the bids, examine the bids in order to ascertain the following matters:

  • Whether documents establishing that the bidder is qualified under law to submit the bid are submitted or not,

  • Whether the bid is complete in accordance with the instructions to bidders set forth in the bidding documents or not and whether it is signed by the bidder or by the bidder’s authorized agent or not,

  • Where a bid security is required to be submitted along with the bid, whether a bid security of such type, period and amount as set forth in the bidding documents is accompanied with the bid or not,

  • Whether the bid is substantially responsive to the technical specifications set forth in the bidding documents and the terms and conditions of procurement contract attached with the bidding documents or not.

• In examining the completeness of bids pursuant to clause (b) above, the following matters shall be examined:

  • Whether a power of attorney for the authorized agent or local agent of the bidder is submitted,

  • Where a joint venture agreement is necessary, whether such agreement is submitted,

  • Whether documents establishing the eligibility of the bidder and of goods mentioned by the bidder are submitted,

  • Whether necessary document relating to the qualifications of the bidder is submitted,

  • Where the bidding documents require the submission of a rate analysis, whether such rate analysis is submitted,

  • Other matters as prescribed.

• For two stage biddings:

  1. The evaluation committee shall, while evaluating the technical aspect of a bid evaluate the following matters:

     • Scope of the supply of goods, construction work or other service,

       • Technical specifications and operating and performance characteristics of key goods, construction work or other service, and

     • Warranty period.

  2. After evaluating the technical aspect of a bid, the evaluation committee shall, while evaluating the financial aspect of such a bid, evaluate the following matters:

     • Period for the supply or completion of goods, construction work or other service,

     • Conditions of payment,

     • Liquidated damages to be paid by the bidder for not completing the work in time and the bonus to which the bidder is entitled for completing the work before time

     • Bidder’s liability towards warranty,

     • Liability to be fulfilled by the bidder,

     • If the bidder has added any other conditions to the proposed procurement contract, such conditions.

• The Public Entity may, in the course of examining the bids pursuant to this Section, ask bidders for necessary information and the concerned bidder shall have to provide the information sought by the Public Entity and in providing such information, no change or alteration in the bid price or other substance of the bid shall be allowed.

• While examining the qualification, if the qualification of a bidder is found to be substantially lower than what was at the prequalification stage, the bid of such a bidder shall be rejected.

• If any arithmetical error is found in a bid in examining bids pursuant to this Section, the Public Entity