Procurement Policy Office

(Established under section 4 of the Public Procurement Act 2006)

Ref: UG/SBD20/10/08

USER GUIDE

VOLUME I

Procurement Policy Office

Ministry of Finance and Economic Empowerment
Port Louis
08 October 2008
 Foreword

The User Guide has been prepared pursuant to section 7(c) of the Public Procurement Act 2006
as a support to enable public officers to conduct procurement proceedings efficiently. The
Guide may also be very helpful to senior officers on administrative procedures public bodies
have to follow internally and interfacing with the institutions established under the Act.

The Policy Office welcomes comments or suggestions on this document from interested
parties.

Contact Address:

The Director
Procurement Policy Office
Ministry of Finance and Economic Empowerment
Level 8, Emmanuel Anquetil Building, Port Louis, Mauritius
Tel: No. (230)201-3760 & Fax: No. (230)201-3758
Email: mof-pposecretariat@mail.gov.mu
 TABLE OF CONTENTS

Introduction - Objectives and arrangements of this User Guide...........3

Part I Language of Public Procurement Interpretation of terms used .........5

Part 2. Institutional set-up..............8

2.1. The Three Organs.
2.2. The Procurement Policy Office
2.3. The Central Procurement Board
2.4. The Independent Review Panel

Part 3. Arrangements for Procurement at the level of Public Bodies.................14

3.1. Primary Responsibility for Public Procurement
3.2. Procurement Function within a public body
3.3. Administrative structures of parastatal bodies
3.4. Advice from the Procurement Policy Office
3.5. Establishment and Procedure of Bid Evaluation Committee

Part 4. Procurement Planning.................18

4.1. Identifying the Need to Procure
4.2. Procurement Planning
4.3. Estimating the Cost and Identifying the Source of Funds
4.4. Calculating Estimated Value of Procurement Contracts
4.5. Possible environmental Protection Measures
4.6. Determination of Appropriate Contract Form
4.7. Organizing the Procurement Team

Part 5. Procurement Methods..................23

5.1. Choosing the Proper Method
5.2. Conditions for use of a Particular Procurement Method
5.3. Procedures for Negotiations
5.4. Use of Information and Communications Technology
5.5. Electronic Submission

Part 6. The Bidding Process: Standard Bidding Documents and Procurement

Procedures........29
6.1. Standard Bidding Documents
6.2. Procedures for Open Advertised Bidding
6.3. Procedures for Procurement of Consultancy Services
6.4. Procedures for Restricted Bidding
6.5. Procedures for Request for Sealed Quotations (Goods/Works/Services)
6.6. Emergency Procurement
6.7. Direct Procurement
6.8. Procurement through Community and End-User Participation
6.9. Procurement by Departmental Execution

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Part 7. Contract administration.......70
7.1. Introduction
7.2. Contract Terms
7.3. Payment
7.4. Contract Modifications
7.5. Termination and Breach
7.6. Record Keeping

Part 8. Challenge and Appeal .................74

8.1. Provisions of the Act
8.2. Bid Challenge Procedure

Part 9. Procurement Integrity..................81

9.1. Conduct of Public Officials
9.2. Conduct of Bidders and Suppliers
9.3. Suspension and Debarment
9.4. Procedures for Suspension and Debarment

Part 10. Miscellaneous ..................82

10.1. Oath of office
10.2. Declaration of Assets

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 INTRODUCTION

Objectives and Arrangements of this User Guide

This User Guide is intended to help officials of public bodies conduct public procurement
in compliance with the Public Procurement Act 2006 (the Act) and the accompanying
Regulations. The Act, together with the Regulations, establishes precise rules for eac h step of
the process. Applying these procedures and rules properly requires knowledge and skills.
Before the skills can be developed through experience, the rules and procedures must be
learnt. The User Guide elaborates on procedures and rules in the sequence of the buying
activity and provides instructions and aids for applying them correctly.

Throughout the User Guide, the term User will be utilized in a general way to describe
officials of the public bodies to whom the User Guide is addressed. Most often the User will be
procurement officers charged with responsibilities to carry out procurement actions in
accordance with the Act and the Regulations. The User Guide will also be a valuable resource
for senior policy officials who want to understand the principles, standards and procedures
involved in the public procurement system.

Part 1 of the Guide relates to the language of public procurement. The interpretation of
the terms used in the Act and the Regulations has been reproduced for the convenience of the
User.

Part 2 concerns the Procurement Policy Office and the relationship between public
bodies and the Policy Office; the functions of the Central Procurement Board and the
responsibility of the Board for approving major contracts ; and the role of the Independent
Review Panel.

Part 3 emphasises on the possibility of either operating under the PPA 2006 with
existing organizational arrangements for procurement or expanding to accommodate
specialized and complex types of procurement. This part also highlights the existence of
particular administrative structures within each parastatal organization to cater for specific
requirements.

Part 4 discusses the first phase of the procurement cycle: procurement planning.
A successful procurement begins with careful planning. The Regulations implementing the Act
provide detailed rules and procedures regarding planning, but these rules are only addressed to
the final step of the planning process. Other laws, particularly the budgetary framework, and
internal administrative procedures, apply in planning for a procurement in the public sector.
However, the final stage, choosing the proper procurement procedure, is governed by the Act
and thus the process is explained in the User Guide.

The Act authorizes the use of several procurement methods for the selection of
suppliers. Part 5 of the User Guide sets out the instructions for use of each method. Users will
choose the proper procurement method for the particular procurement activity, and then follow
the instructions for the method chosen.

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 The contents of the main Standard Bidding Documents and the different stages that a
bidding process goes through have been discussed in Part 6. This part will raise awareness of
users in conducting procurement correctly irrespective of the chosen procurement method.

Part 7 concerns issues of contract administration, including contract terms, payment,

modification, termination and breach.

Part 8 discusses the procedures for Challenge and Appeal by unsatisfied/potential

bidders.

Part 9 addresses the conduct of bidders, suppliers and public officials with emphasis on
procurement integrity.

Part 10 covers miscellaneous items.

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 PART I
Language of Public Procurement - Interpretation of Terms used in the
Public Procurement Act 2006 and the Public Procurement Regulations
2008
Unless the subject or the context otherwise requires, the terms below shall be understood
as follows:

"Act" means the Public Procurement Act 2006;

bid includes a proposal submitted in response to a request issued pursuant to section

24 of the Act;

"bidder" means a participant or potential participant in procurement proceedings;

bidding document (a) means any document issued by a public body on the basis of
which bidders prepare bids; and (b) includes any document which contains instructions to
bidders, specifications, maps, designs, terms of reference, work schedule, evaluation
criteria, bills of quantities, conditions of contract or other similar items;

bid security means the security instrument required to ensure that a bid will remain valid
during the period stated in the bidding document;

Board means the Central Procurement Board established by section 8 of the Act;

Chairperson means the Chairperson of the Board or of the Review Panel, as the case
may be;

challenge means a challenge made pursuant to sections 24, 40, or 43 of the Act;

consultant means a person under contract to provide consultancy services to a public body
in relation to a procurement contract;

consultancy services means services of an intellectual and advisory nature, not incidental
to the supply of goods or to the execution of the works, such as design, supervision, training,
analysis, auditing, software development, and similar services;

contractor means a person who has entered into a procurement contract with a public
body;

"departmental work" means any public works to be carried out directly by the public body
itself or by another public body without entering into any contract;

"deposit"- (a) means the retention money, earnest money, bid security or performance
security furnished for security or pending the settlement of any work; (b) includes any
amount furnished for security owing for any other reasons, as well as the security
associated with the filing of a complaint;

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donor organization means an organization based outside Mauritius which provides or
joins in providing grants, credits, or loans to the Government or its agencies;

exempt organization means a public body, as specified in the First Schedule of the Act,
which is excluded from the application of the Act;

"goods" means objects of every kind and description including commodities, raw
materials, manufactured products and equipment, industrial plant, objects in solid, liquid
or gaseous form, electricity, as well as services incidental to the supply of the goods such
as freight and insurance;

"joint venture" means an association of two or more entities for the purposes of carrying out
a procurement c ontract;

local authority (a) has the same meaning as in the Local Government Act; and (b)
includes the Rodrigues Regional Assembly;

major contract means a contract for the procurement of goods or services or the execution
of works (a) to which a public body is or proposes to be a party; and (b) the estimate of the
fair and reasonable value of which exceeds the prescribed amount;

member (a) means a member of the Policy Office, the Board, or the Review Panel, as the
case may be; and (b) includes the Director, or the Chairperson of the relevant body, as the
case may be;

Minister means the Minister to whom responsibility for the subject of finance is assigned;

officer means a person who is assigned to, or employed by, the Policy Office, the Board or
the Review Panel;

other services means any services other than consultancy services or services incidental to
the supply of goods or the execution of works;

parastatal body means an organisation established under an enactment whether body

corporate or not and which depends wholly or partly on government funding;

Policy Office means the Procurement Policy Office established under section 4 of the Act;

prescribed amount means the amount specified in column 3 of the Schedule to the Act
corresponding to the public body specified in column 1 in relation to the type of contract
specified in column 2 of that Schedule;

"procurement" means the acquisition by a public body by any contractual means of

goods, works, consultant services or other services;

"procurement contract" means a contract between the public body and a supplier,
contractor or consultant resulting from procurement proceedings;

public body - (a) means any Ministry or other agency of the Government; (b) includes
(i) a local authority; (ii) a parastatal body; and (iii) such other bodies specified in the
Schedule to the Act; but (c) does not include an exempt organization;

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public official means (a) an officer; (b) a supplier, contractor or consultant or any of
their agents; and (c) a public officer or other person employed by a public body;

regional preference means the margin of preference applicable to suppliers of the

countries of the region as per instructions issued by the Policy Office;

responsive in relation to a bid, means responsive to the basic requirements of a bid

regarding ability to perform and complete on time;

Review Panel means the Independent Review Panel established under section 44 of the
Act;

supplier means a person delivering goods, works, consultancy services or other services;

Vice Chairperson means either of the two Vice-Chairpersons of the Board; and

"works" means any work associated with the construction, reconstruction, demolition,
repair or renovation of a building, structure or works, such as site preparation, excavation,
erection, building, installation of equipment or materials, decoration and finishing, as well
as services incidental to construction such as drilling, mapping, satellite photography,
seismic investigations and similar services.

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 PART 2
Institutional Set-up

2.1. The Three Organs

(1) The primary objective of the Public Procurement rules and regulations is to
provide maximum value for money to the government by ensuring that public funds are spent in
a transparent, efficient and fair manner. The Public Procurement Act 2006 establishes three
administrative organs for the attainment of this objective viz the Procurement Policy Office (the
Policy Office) the Central Procurement Board (the Board), and the Independent Review Panel
(the Review Panel).

(2) The functions of these three organizations do not replace or modify the
fundamental responsibilities of public bodies in conducting procurement operations. Public
bodies will, however, need to adjust the execution of their primary responsibilities for
procurement with reference to the Policy Office, the Board, and the Review Panel. The Act and
the Regulations provide detailed procedures for implementing these new relationships.

2.2 The Procurement Policy Office

2.2.1. Establishment of the Procurement Policy Office (the Policy Office)

(1) The Policy Office is the engine for effective procurement reform in Mauritius.
Procurement officers in the various public bodies and others interested in procurement in
Mauritius will want to have a deep understanding of the mandate, initiatives, and resources of
the Policy Office. Productive working relationships between the public bodies and the Policy
Office will allow a positive integration of developing procurement policy with the conduct of
procurement operations.

(2) The Policy Office is established under section 4 of the Act to serve as an
independent policy-making, and monitoring body for public procurement in Mauritius.
Similar Procurement Policy Offices have been set up by other countries modernizing their public
procurement systems.

(3) The Policy Office has broad responsibilities to oversee the implementation of the
Act. The Office will not be involved operationally in the conduct of procurement proceedings or
the resolution of procurement disputes. The Policy Office may request information from the
public bodies and consult with them (and also the Board and the Review Panel) in the
development of Government procurement policy.

2.2.2. Functions of the Procurement Policy Office

(1) Section 7 of the Act gives specific functions to the Policy Office:

(a) issue instructions to public bodies concerning the coordination of their

actions with the Policy Office, the Board and the Review Panel;

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 (b) formulate policies relating to procurement, including directives,
procedures, instructions, technical notes and manuals, for the
implementation of this Act;

(c) issue standard forms of contracts, bidding documents, pre-qualification

documents, requests for proposals and other similar documents for
mandatory use by every public body implementing procurement;

(d) collect from the Board, the Review Panel and public bodies information
on procurement activities and monitor their compliance with this Act;

(e) recommend and facilitate the implementation of measures to improve the

functioning of the procurement system, including the introduction of
information and communications technology and the dissemination of
publications and the setting up of websites dedicated to procurement;

(f) prepare and conduct training programmes for public officials, contractors
and suppliers concerning procurement;

(g) solicit the views of the business community on the effectiveness of the
procurement system;

(h) present an annual report to the Minister regarding the overall functioning
of the procurement system;

(i) communicate and cooperate with international institutions and other

foreign entities on matters of procurement;

(j) advise on and monitor foreign technical assistance in the field of

procurement;

(k) advise the Financial Secretary regarding delegation of financial authority

to public officers enabling them to approve contract awards and changes
to contracts of a financial nature and the annual review of such
delegations; and

(l) perform such other functions as may be assigned to it by the Financial

Secretary.

(2) Regulation 3 of the Public Procurement Regulations 2008 elaborates further the
functions of the Policy Office particularly in the area of oversight, recommendations and
reporting, public access, enhancing the efficiency of procurement operations, preparing and
issuing a public procurement bulletin, and procurement capacity building. These additional
Policy Office functions, build on those laid down in the Act, constitute a mandate for
modernization of procurement in Mauritius for the benefit of the public and the community of
suppliers and contractors.

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(a) Oversight

(i) The Policy Office is authorized to collect information and require

reports from public bodies and end-users concerning the conduct of
procurement activities in Mauritius.

(ii) The Policy Office shall inform public bodies and end-users of the
types of statistical and reporting information that are required to be
furnished, and the periodicity of their submission.

(iii) The Policy Office shall establish procedures and mechanisms to

ensure the effective and timely solicitation of viewpoints of interested
parties in the development of procurement policies, regulations,
procedures, documents and forms.

(b) Recommendations and Reporting

(i) The Policy Office shall analyze the information collected and make
recommendations to the government for improvements in the
implementation of public procurement.

(ii) The Policy Office shall submit reports to the Minister, on the
implementation of the Act and the Regulations and on current issues
of public procurement policy.

(iii) The Policy Office shall provide advice and guidance to public bodies
and to other interested parties in the application of the Act and the
Regulations made thereunder.

(c) Public Access

The Policy Office shall take steps to ensure the availability and the
accessibility to public officials and the general public of the Act and
Regulations. Those measures may include:

(i) publication of a periodic bulletin containing information about the

procurement system and procurement proceedings in Mauritius,
including, from time to time, compilations of legal instruments
applicable to the procurement process; and

(ii) verification of the extent of distribution of the applicable legal texts

to public officials and other interested parties.

(d) Procurement Capacity Building

(i) The Policy Office shall devise measures to facilitate the

implementation of strategies and programmes for the promotion of
professional standards and development.

(ii) Specific tasks to be undertaken by the Policy Office in order to

fulfill its mandate shall include-

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 (a) developing, and facilitating the institutionalization of, a
training programme aimed at promoting professional skills
and standards in procurement in Mauritius, including
training courses that shall be made available upon
induction to procurement functions, as well as on an
ongoing and systematic basis continually to boost skill
levels of officials; to that end, the Policy Office may
recommend to the Government the designation of one or
more entities as responsible for conducting procurement
training on an ongoing basis;

(b) developing proposals and plans for the phased

introduction of professional procurement staffing in the
public bodies.

(e) Training and Qualification Requirements

The Policy Office is responsible under section 50(1) of the Act for the
issuance of guidelines and qualification requirements for the training and
qualification requirements of procurement officers in the public bodies.

(f) Disqualification, Suspension and Debarment of Suppliers,

The Policy Office is responsible to consider proposals from public bodies

for the:

- disqualification of suppliers on ground of defaults or poor

performance; and

- suspension or debarment of suppliers on ground of non-compliance

with the provisions of the Act and/or Regulations concerning
procurement integrity (fraud, collusion, and other misconduct by
means of an administrative procedure set forth in the Public
Procurement (Suspension and Debarment) Regulations 2008);

2.3. The Central Procurement Board

2.3.1. Establishment of the Central Procurement Board

A new Central Procurement Board is established under section 8 of the Act to replace
the Central Tender Board.

2.3.2. Functions and Responsibilities of the Board

(1) The Boards primary area of responsibility is to oversee and approve the award
of major contracts entered into by public bodies, taking care to achieve the highest standards of
transparency and equity in the execution of its duties. In this regard, public bodies will need to
work closely with the Board in the planning and execution of major contracts. Public bodies are

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specifically required to submit bidding documents and notices for major contracts to the Board
for approval.

(2) The Board has a special responsibility for constituting the Bid Evaluation
Committee (BEC), from its own list of qualified and independent evaluators, for major contracts
and to review the recommendations of the Committee before approving the proposed contract
award. The Board may require the Bid Evaluation Committee to make fresh or further
evaluation on specific grounds.

2.3.3. Bid Evaluation Procedures

(1) The detailed procedures for bid evaluation of major contracts are set out in
Regulation 4, which is reproduced hereunder:

4. Bid evaluation procedures for major contracts

(1) (a) For the purposes of examination and evaluation of bids, the Board
shall constitute a Bid Evaluation Committee within 15 days after the
opening of bids.

(b) A Bid Evaluation Committee set up under paragraph (a) shall be

composed of at least 3 members who are knowledgeable about the
goods or services under procurement and the public procurement
procedures.

(2) Subject to paragraph (3), the Board shall select from a list of qualified and
independent evaluators maintained by it to act as members of the Bid Evaluation
Committee.

(3) (a) As far as possible, no public officer working in a public body shall
act as member of the Bid Evaluation Committee where the evaluation
relates to a procurement in respect of that public body.

(b) No person shall act as a member of the Bid Evaluation Committee

where his participation would constitute a conflict of interest.

(4) Where necessary, the Board may, following a request from a Bid
Evaluation Committee, appoint an adviser or a technical sub -committee to assist
it.

(5) The functions of the Bid Evaluation Committee shall include the
examination, evaluation and comparison of bids and determination of the lowest
evaluated substantially responsive bid for the award.

(6) The Chief Executive Officer of the public body concerned with the
procurement shall designate a member of his staff to act as Secretary of the Bid
Evaluation Committee.

(7) The members of a Bid Evaluation Committee may be paid such fees as
may be determined by the Board.

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 (8) The Secretary of the Bid Evaluation Committee shall take minutes of
meetings of the committee and keep record of all matters considered by the
committee.

(9) The minutes and other records of the Bid Evaluation Committee shall be
open for inspection by the Policy Office.

2.4. The Independent Review Panel

2.4.1 Establishment of the Independent Review Panel

(1) Section 44 of the Act establishes the Independent Review Panel (the Review
Panel) for the purpose of considering applications for review from bidders or potential bidders
or for the purpose of reviewing the decision of a public body appealed by an unsatisfied bidder.

(2) Normally the Review Panel will suspend the procurement proceedings during the
course of its deliberations. However, it will not do so if the public body concerned certifies that
urgent public interest considerations require the procurement to proceed. Such a certification by
the public body shall state specific grounds relied upon which shall form part of the record of the
public procurement proceedings. If the proceedings are not suspended and a decision is
favorable to the unsatisfied bidder, compensation will be limited to the recovery of the costs of
bid preparation and participation in the procurement proceedings. If the proceedings are
suspended, the Review Panel has a number of possible remedies to grant in favor of the
unsatisfied bidder who persuades the Panel that its position has merit. These include the
following corrective actions:

(a) prohibit the public body from acting or deciding in an unauthorized

manner or from following an incorrect procedure;

(b) recommend the annulment in whole or in part of any unauthorised act or

decision of the public body;

(c) recommend a re-evaluation of the bids or a review of the decision for an

award, specifying the grounds for such recommendation; or

(d) recommend payment of reasonable costs incurred in participating in the

bidding process where a legally binding contract has been awarded
which, in the opinion of the Review Panel, should have been awarded to
the applicant.

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 PART 3

Arrangements for Procurement at the level of Public Bodies

3.1 Primary Responsibility for Public Procurement

(1) Under the Public Procurement Act (PPA) 2006 and the Public Procurement
Regulations 2008, the various public bodies retain primary responsibility for the planning and
conduct of their procurement. Public bodies, consistent with their particular mission and
activities, continue to be responsible to prepare annual procurement plans and to prepare and
conduct individual procurement actions. Public bodies are responsible for defining the particular
procurement requirements and choosing the appropriate method of procurement and contract
type.

(2) For non-major procurement, public bodies issue appropriate solicitation

documents, evaluate bids or proposals, select the contractor/supplier and administer the
contract, keeping accurate records of all procurement actions.

(3) Neither the Act nor the Regulations are intended to shift those responsibilities
away from the public bodies.

(4) With regard to the Policy Office, for example, public bodies will receive, from time
to time, directives concerning policy aspects of public procurement operations such as
instructions on the use of Standard Bidding Documents, advice on electronic procurement,
requests for statistical reports of procurement actions taken, and information on procurement
training opportunities.

(5) With respect to the Board, public bodies will need to coordinate (as they used to
do with the Central Tender Board under the CTB Act 2000) the conduct of their major
procurement actions. For major procurement actions, the Board will have oversight and
monitoring responsibility with regard to the bidding documents and will actively conduct the bid
evaluation process.

(6) With respect to the Review Panel (established to review bid protests or
challenges from unsatisfied bidders), public bodies will consider as an initial matter any such
challenge submitted to the public body in a timely fashion and will need to provide all necessary
documentation to the Review Panel in the event the unsatisfied bidder pursues its challenge by
submitting an application for review to the Review Panel.

(7) A public body will also need to act in accordance with the Review Panel
procedures under Part VI of the Act and Regulations 48 to 59 concerning the suspension of the
procurement proceedings pending the Review Panels adjudication, and consider, in light of the
public interest, whether it should go ahead with the procurement action notwithstanding the
application for review.

3.2. Procurement function within a public body

(1) Public bodies may operate under the PPA with existing organizational
arrangements for procurement. Neither the PPA nor the Regulations prescribe a particular

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structure for the procurement function within the various public bodies. Accordingly, each public
body is permitted to retain or to modify its organization of the procurement function in the
manner it considers most appropriate.

(2) For example, where there is a Departmental Tender Committee, that Committee
would now act upon the report of the Bid Evaluation Committees and shall not itself conduct
evaluation of bids. The public body would have its own arrangements for the setting up of Bid
Evaluation Committees with the assistance of experts from within the public body,
supplementing or replacing those experts, as appropriate, in the case of highly specialized
procurement. For example, in the case of information technology procurement, experts from the
Central Informatics Bureau (CIB) are often asked to participate in bid evaluation.

(3) Public bodies may wish to expand their organizational arrangements for
procurement to accommodate specialized and complex types of procurement

(4) Some public bodies have a wide range of procurement responsibilities. The
Ministry of Health, for example, must procure both pharmaceuticals and medical equipment.
Although such equipment purchases may resemble those of other Ministries (e.g., tractors for
the Ministry of Agro Industry and Fisheries), the procurement of pharmaceuticals requires the
substantial participation of medical professionals in the development of the technical
requirements and in the evaluation of bids. For this reason, the Ministry of Health has separate
units to perform these procurement functions for equipment and pharmaceuticals respectively,
but has left the conduct of the bidding process and final approval of award decisions to the
Departmental Tender Committee.

(5) Other public bodies may wish to adopt similar organizational arrangements
where it is necessary to accommodate a variety of specialized or complex procurement actions.

(6) Public bodies may wish to modify or expand their organizational arrangements to
accommodate a large volume of procurement.

(7) Some public bodies have a large volume of procurement, or a procurement

volume with significant seasonal fluctuations. In such a case it may be useful for the public
body to consider establishing more than one tender committee according to threshold so that
the procurement volume will not impair the quality or efficiency of the procurement process.

3.3. Administrative structures of parastatal bodies

Parastatal organizations also, subject to the Act and the accompanying Regulations,
often have administrative structures which are different from those of Ministries, Departments or
other public bodies. Typically they are governed by a Board of Directors and that Board may
have some involvement in procurement decisions. At the Central Electricity Board, for example,
the Board of Directors approves the award of large contracts. Of course if the contract value
exceeds the threshold for major contracts, approval of the Central Procurement Board shall be
necessary.

3.4 Advice from the Policy Office

(1) The Policy Office has general responsibility under the Act to recommend and
facilitate the implementation of measures to improve the functioning of the procurement system.

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 (2) In this context, the Policy Office will provide necessary guidance to public bodies
regarding their organizational arrangements for procurement. Public bodies should anticipate
this and initiate a dialogue with the Policy Office concerning any procurement organizational
issues important to them.

3.5. Establishment and Procedures of Bid Evaluation Committee

(1) Bid Evaluation Committees are set up by public bodies to assist in contractor
selection. It is not proper for the Chief Executive Officer of a public body to head the Bid
Evaluation Committee. The Bid Evaluation Committee should include technical experts as
required by the needs of the procurement. The Bid Evaluation Committees protect the interests
of government and ensure that the public body realizes value for money and satisfies its needs
as intended.

(2) For bids evaluations at the level of a public body, a Bid Evaluation Committee
(BEC) may be set up as described hereunder:

(a) For each evaluation exercise, there shall be a BEC appointed by the Chief
Executive Officer of the public body or by the Central Procurement Board (for
major contracts), comprising at least 3 evaluators, who shall not have been, as
far as possible, involved in the design of specifications. One member of the bid
evaluation team shall be nominated as Chairman.

(b) The Chief Executive Officer of the public body shall nominate one of its
personnel to act as the secretary of the BEC set by the CPB. For bids below the
prescribed amount one member of the evaluation team shall assume the function
of secretary as well.

(c) When deemed necessary, the BEC may request the assistance of an expert in
the area covered by the bid document. Such assistance shall in no way relieve
the BEC from being responsible for the evaluation process.

(d) To get the proper combination of expertise required, the evaluators shall be
selected from among persons competent in matters of procurement law,
technology, informatics, finance, administration and any other relevant field. The
Central Procurement Board and public bodies shall maintain a list of evaluators
as prescribed in Regulations 4(2) and 7(1), respectively.

(e) Where the necessary expertise is not available in the public body responsible for
the evaluation, such expertise may be sought from other sources.

(f) The BEC shall continue in its functions until the evaluation report is submitted.
Every evaluator shall endeavour to avail himself/herself for a prompt evaluation
of the bids.

(g) Each evaluator shall evaluate without fear or favour.

(h) The evaluation shall be completed within the validity period so as to leave
enough time for contract award.

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(i) Upon completion, the evaluation report indicating the best evaluated bid as well
as other substantially responsive and compliant bids in the order of their merit,
shall be submitted to the Chairman of the Central Procurement Board or the
Chairman of the Departmental Tender Committee, as the case may be.

(j) The evaluation report shall be signed by all members of the BEC and shall
contain a declaration from each member that he/she had no conflict of interest in
evaluating the bids.

(k) Record of all deliberations and other essential matters dealt with by the BEC
shall be kept in the form of Minutes of Proceedings.

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 PART 4

Procurement Planning
4.1. Identifying the Need to Procure
(1) Procurement begins with an identification of need for goods, works or services.
The next step is to make a choice regarding the best method to satisfy the need, which may be
through entering into a procurement contract or carrying the job in-house. For example, after a
public body determines that it needs a report, it must then decide if the report should be done by
the employees of the public body or whether it would be better to hire a consultant to do the
report. If the decision is to hire a consultant, the need for procurement has been identified.

(2) At this stage in the process, those who have the need for the procurement, i.e
the end-users, are making the key decisions. However, the procurement professionals can help
them by providing advice on such matters as availability of sources, market prices and
conditions, production, delivery and performance lead times, and the best time to enter the
market.

4.2. Procurement Planning

(1) A public body shall engage in procurement planning in order to ensure that
procurement is carried out within financial estimates allocated to it.

(2) A public body shall, in respect of every investment project, prepare a master
procurement plan to cover the entire life of the project.

(3) A public body shall, at the beginning of every financial year, prepare an annual
procurement plan which shall include:

(a) the type and quantity of the goods, works or services to be procured;

(b) the timing and implementation of the procurement;

(c) an indication of possible packages of procurement, and their value;

(d) an indication of possible pre-qualification proceedings and procurement

methods to be used;

(e) such other information as may be required in accordance with instructions

issued by the Policy Office.

(4) A public body shall publish on its website an annual procurement plan and
periodically update and revise it. The annual plan to be published on the website shall
indicate only those procurements which would be executed through Open Advertised
Bidding.

18
 (5) In planning procurement for a major contract, a public body shall take into
account the following:

(a) identification and assessment of the need for the procurement;

(b) designation of procurement planning team;

(c) conducting market research in order to identify various technical

solutions, in particular in the commercial market, to identify the range of
available suppliers, and to determine the most favourable contractual and
guarantee terms available in the commercial market that would be
suitable for procurement;

(d) identification of the amount and sources of financing;

(e) studying acquisition history for similar goods, works or services;

(f) defining and describing the procurement requirements;

(g) estimate of the cost of a proposed procurement;

(h) possible aggregation of procurement requirements, taking into account

factors such as achieving economies of scale in purchasing, optimising
use of procurement and contract administration resources;

(i) possible slicing of the procurement into lots, provided that such slicing is
not done to avoid thresholds beyond which more competitive
procurement methods may be used, and where such slicing is indicated
by factors such as whether an approach would provide the best overall
value for the public body, possibility of technical compatibility regarding
items purchased in separate lots, the possibility of allowing bidders to bid
for individual lots or for the entire package, and measures to promote
participation by small enterprises;

(j) the availability of any procedures for procurement of common-use items;

(k) selection of contracting approach and structure, including verification of

possible availability of framework or indefinite quantity contract
arrangements for the item in question;

(l) selection of appropriate procurement method in accordance with sections

15 to 25 of the Act, and the reasons for use of a procurement method
other than open bidding, and any possible combination and package of
task or contract; and

(m) determination and identification of required contract administration

resources and responsibility.

(6) A public body may establish a Committee of need in accordance with instructions
issued by the Policy Office, to plan any individual procurement identified in its annual

19
procurement Plan. A public body may find it useful to apply the general principles of para (5) to
procurement for non-major contracts as well.

4.3 Estimating the Cost and Identifying the Source of Funds

(1) In planning for procurement, there must be a realistic assessment of the needs of
the public body and the funds available. Budgets must be carefully formulated and based on
the most reliable cost data available. This should include the final cost data from completed
procurements. This information should be carefully maintained to build a reliable database to
formulate realistic budgets for future procurements.

(2) Before beginning the procurement procedure, it is important to ensure that funds
are available and committed for the procurement. Suppliers and contractors quickly lose
confidence in the procurement system when procurements are routinely cancelled for lack of
funds or even worse when the public body lacks the funds to pay the suppliers and contractors
the amounts due to them under a procurement contract.

(3) In the case of major public projects, the public body must have funds available
for the full value of the works and their supervision. When the schedule of building requires the
continuation of construction beyond the current fiscal year, the budget of future years should
include the continuing costs of the project.

4.4 Calculating Estimated Value of Procurement Contracts

(1) The calculation of the estimated value of a proposed contract shall be based on
the total amount [net of VAT] payable as estimated by the public body. This calculation shall
take account of the estimated total amount, including any form of option, any and all lots that
may be awarded, any renewals of the contract, and, the maximum estimated value [net of VAT]
of all the contracts envisaged for the total term of a framework agreement.

(2) After the preparation of a cost estimate under this rule, it shall be examined by
the technician or group of technicians, one level higher in rank than the technician who has
prepared it. In examining, if there are mistakes, they shall be corrected and reliable cost
estimate shall be prepared. If there is no higher-level technician than the technician who
prepared cost estimate in the Office, the Departmental Head shall arrange to examine such a
cost estimate.

4.5 Possible Environmental Protection Measures

The consideration of measures of environmental protection may be appropriate in the
process of procurement planning in accordance with the guidance set forth in Appendix K.

4.6 Determination of Appropriate Types of Contract

In the planning and preparation of procurement actions, the public body shall determine
the appropriate contracting approach and structure to be utilized for any given procurement,
taking into account standard contract forms promulgated by the PPO and the conditions for their
use. The standard types of contracts and the appropriate circumstances for their use are set
forth in Appendix L.

20
4.7 Organizing the Procurement Team
(1) A procurement team shall be established for all major procurements.
However it may also be established for any procurement where it is deemed appropriate.

(2) A successful procurement requires the expertise and effort of many persons.
These persons must be organized into a team that brings together all of the skills and authority
needed to manage and conduct the procurement. As far as possible, the following functions
should be represented on the team: procurement, program/operations, budget, and technical.

PROCUREMENT FUNCTION : The person responsible for this function is in charge of the
procurement activity and should be fully trained and qualified in all aspects of
procurement and this User Guide before taking on the responsibilities of this function.

PROGRAM OR OPERATIONS FUNCTION : The person responsible for this function should
understand the specific objectives of the procurement and ensure that these objectives
remain in focus throughout all stages of the procurement activity. For example, in the
case of procuring computers, this function might be performed by a person who will use
one of the computers. In the case of a road building project, this function might be
performed by the project manager.

BUDGET FUNCTION : The person responsible for this function must ensure that the
procurement remains within the limits of the approved budget and that the funds have
actually been designated and put aside for this purpose.

The procurement officer may seek the assistance of a legal officer at any stage of the
procurement process and execution of the contract, if so required.

TECHNICAL FUNCTION : The person responsible for this function should have technical
expertise in the object of the procurement. He or she should have a major role in
developing the technical specifications

(3) The composition of the team may vary depending on the size and complexity of
the procurement and the availability of qualified staff to serve on the team.

(4) In very complex procurements, the public body may need to organize a
specialized technical group to assist in developing specifications .

(5) When appointing members of the procurement team it is important to look

for potential conflict of interest situations and avoid appointing members who may have
a personal financial interest in the outcome of the procurement.

(6) The procurement team should ensure that the proper procurement procedure is
used, that a record of the procurement is maintained, that all time periods and deadlines are
observed, that all procurement documents and forms are completed and issued properly and
that all communication with candidates is proper. The procurement team protects the process
and focuses on maintaining the fundamental honesty, fairness and transparency of the
procurement proceeding.

21
 (7) The team approach also establishes a system of checks and balances that helps
to keep the entire process transparent and honest. It is important that each member of the team
understands his or her functions and responsibilities.

22
 PART 5
Procurement Methods

5.1. Choosing the Proper Method

(1) Once a public body identifies a procurement need and has funds available and
committed to meet that need, the next step is to select the appropriate procurement method.
The procurement professional should take the lead in this decision.

(2) Part IV of the Act sets out the rules and procedures for selecting the appropriate
procurement method. For procurement of goods, other services and works, the available
methods are Open Advertised Bidding, Restricted Bidding, Request for Sealed Quotations,
Emergency Procurement, Direct Procurement, Community or End-user Participation and
Departmental Execution. For Consultancy Services, Requests for Proposals (with a number of
variations) and Direct Procurement are the methods to be used. Direct procurement method
should be resorted to only in specific circumstances.

(3) When a public body chooses a procurement procedure other than Open
Advertised Bidding, the justification for using the method chosen should be noted in the record
of procurement proceedings. The Standard Procurement Forms have a section for recording
the justification for using a particular procurement method other than Open Advertised Bidding.

(4) Some of the circumstances for using a procurement procedure other than Open
Advertised Bidding depend upon the estimated cost of the procurement. The procurement
regulations prohibit any action to split-up procurement in order to qualify the procurement for an
exception to Open Advertised Bidding. In fact, it is not permitted to use direct procurement to
avoid competition or to favour a particular supplier.

5.2. Conditions for use of a particular procurement method

Procurement
Method Conditions for Use

Open Advertised This method is ideal to obtain value for money through increased
Bidding competition and should be used for high value procurements where there
is a large number of suppliers. It may also be used in situations where
there is a limited number of unknown suppliers.
Restricted Where:
Bidding
(a) the goods, works or services are available only from a limited number
of suppliers and all of them are known;

(b) suppliers of specialized goods and services have been pre-approved

by the public body, and are part of a supplier eligibility list (section 19 of
the Act);

c) the time and cost of considering a large number of bids is

23
 disproportionate to the value of the procurement, provided the estimated
value of the contract does not exceed five million rupees, and at least 5
bidders are directly solicited; or

(d) the evaluation of the financial proposal cannot be based solely on the
quoted price per item for small value procurement as other factors such as
operational costs, performance, reliability etc. have to be included to
determine the evaluated cost.

Two Stage In the case of large or complex contracts for goods or works, for which
Bidding (section open or restricted bidding is not suitable because of the difficulty in
29 of the Act) defining precisely the goods or works.

Request for For the purchase of readily available goods or procurement of small works
Sealed or small other services for which there is an established market, so long
Quotations as the estimated value of the contract does not exceed five million rupees,
(section 20 of the and where price is the only determining factor.
Act)
Direct (1) For procurements not exceeding the following prescribed thresholds
Procurement (Regulation 44 as amended):
(section 25 of the
Act) (a) in the case of procurement of goods, where the value does not
exceed 500,000 rupees provided the total cost per single item
does not exceed 100,000 rupees; and
(b) in the case of procurement of works, consultancy services or
other services, where the value does not exceed 500,000
rupees.
(2) Where one supplier has the exclusive right to manufacture the goods,
carry out the works, or perform the services to be procured, and no
suitable alternative is available;
(3) For additional deliveries by the original supplier which are intended
either as replacement parts for existing supplies, services, or installations,
or as the extension of existing supplies, services, or installations where a
change of supplier would compel the public body to procure equipment or
services not meeting requirements of interchangeability with already
existing equipment or services, provided that the value does not exceed
50 % of the initial contract value;

(4) Where additional works, which were not included in the initial contract
have, through unforeseeable circumstances, become necessary and the
separation of the additional works from the initial contract would be difficult
for technical or economic reas ons, provided that the value does not
exceed 30 % of the initial contract value.

(5) Where the nature of the consultancy services requires that a particular
consultant be selected due to unique qualifications.

24
Emergency (1) A public body may procure goods, works or other services from a
Procurement single supplier without competition, in case of emergency or extreme
(section 21 of the urgency. The scope of the emergency procurement shall, as far as
Act) possible, be limited to the period of the emergency, so that appropriate
competitive procurement methods may be utilised at the conclusion of the
emergency period. "Extreme urgency" includes a situation wherein:

(a) the country is either seriously threatened by or actually

confronted with a disaster, catastrophe, war or Act of God;

(b) life or the quality of life or environment may be seriously

compromised.

(2) Where the condition or quality of goods, equipment, building or

publicly owned capital goods may seriously deteriorate unless action is
urgently and necessarily taken to maintain them in their actual value or
usefulness; and

(3) Where investment project may be seriously delayed for want of an

item of a minor value.

Community or Where:
end-user
participation (1) community or end-user participation may result in enhancing the
(section 22 of the economy, quality or sustainability of the service to be procured; and
Act)
(2) the objective of a project is to create employment and community
involvement.

Departmental Where:
Execution
(section 23 of the (1) an activity is not likely to attract bidders or may impose unacceptable
Act) risks on the contractor as the cost cannot be pre-determined; or

(2) the risk of unavoidable interruptions can be better borne by the public
body; or

(3) an activity requires practical method for construction, maintenance

and conservation under special conditions; or

(4) in the case of a pilot project for the development of a technology,

where work cannot be carried out by a contractor; or

(5) works have to be carried out without disrupting existing operations; or

(6) there is an emergency such as a national disaster which calls for

immediate action

25
 Request for When the public body seeks to obtain consulting services or other
Proposals services for which Open Advertised Bidding is not suitable because of the
(section 24 of the difficulty in defining precisely the services.
Act)

5.3. Procedures for Negotiations

Procedures for negotiations under Regulation 8 of the Public Procurement Regulations
2008 shall be carried out as described hereunder:
(a) Negotiations with a bidder shall be resorted to only in the following
circumstances:
(i) the lowest evaluated substantially responsive bid is substantially above
the updated estimated costs and a re-bid exercise is considered not
practical;
(ii) direct procurement from a single source under section 25(2)(b) of the Act
is resorted to; or
(iii) emergency procurement under section 21 of the Act is resorted to.

(b) For non-major contracts, the Chief Executive Officer of the public body shall
appoint a Negotiator or a Negotiating Team, depending on the value and
complexity of the procurement contract, from among officers who are
knowledgeable in all aspects of the procurement.

(c) For major contracts related to para 1 (a) and 1(b), the appointment of the
negotiator or negotiating team shall be by the Central Procurement Board in the
following manner:
(i) where negotiation is required following an evaluation of bids the
Negotiating Team shall consist of members of the Bid Evaluation Team
and employees of the public body concerned who are well conversant
with the requirements in the bid document and are specialized in the
specific procurement;
(ii) where negotiations are to be carried out with respect to para 1(b)
independent negotiators shall be appointed to form a team with the
employees of the public body.

(d) The Chief Executive Officer or the Central Procurement Board, as the case may
be, shall oversee the negotiations process in the following manner:
(i) carrying out a pre-negotiation review and approving the agenda;
(ii) requiring the team to seek approval at a given stage before finalizing the
terms of the agreement.

26
(e) The review is conducted so that the Chief Executive or the Central Procurement
Board can be assured that the Team Leader is well prepared and that the other
members of the team are agreeable with the strategy of negotiations in order to
achieve the expectations of Management or the Central Procurement Board.

(f) From the Negotiator(s)'s point of view, the advantage of the review is the
opportunity to understand the expectation of management and to obtain the
authority to handle particular problems.

The review can be a quick run-down of the facts and the objective in five minutes
or less if it is a small deal. It can be a formal presentation by the negotiating team
to an assemblage of top procurement management. It can be a written
justification and request for clearance to proceed.

(g) The public body concerned shall provide a member of its staff as secretary to
attend the negotiation sessions and to maintain record of the proceedings. Such
record shall be part of the procurement records.

(h) The outcome of a negotiation shall only be executed after approval of the Central
Procurement Board/Chief Executive of the public body depending on whether the
procurement is for a major or minor contract.

(i) Exceptionally in case of emergency referred to in para 1(c) for major contract,
when the situation warrants for immediate start of negotiation, the public body
shall initiate procurement procedures for immediate action after negotiation with
Contractors/Service Providers based on its own past experience of costs and
resources, ascertaining due diligence to obtain value for money.

The decision of having recourse to emergency procurement and defining the

scope of the emergency shall rest upon the public body.

The public body shall as far as possible arrange with the Contractor/Service
Provider that the scope of the works are subject to variations and approval of
Central Procurement Board.

(j) For procurement under emergency as mentioned in para 9, the public body shall
as soon as possible report the situation of emergency to the Central Procurement
Board giving details of actions initiated. The Central Procurement Board may
thereafter discuss with the public body for any fine tuning in respect of the scope
of works and any other relevant detail to render the procurement more effective.

27
5.4. Use of Information and Communications Technology
(1) The use of information and communications technology shall be introduced in a
gradual and steady manner depending on the readiness of procuring entities to apply such
measures.

(2) Pursuant to the mandate set forth in section 7(e) of the Act, the Policy Office
shall examine, recommend and, where appropriate, implement ways of introducing in public
procurement, at appropriate stages, the use of information and communications technology, and
other technical innovations.

(3) Public bodies are encouraged, in consultations with the Policy Office, to devise
and implement measures aimed at employing information and communications technology in
the procurement process. In issuing approvals, the Policy Office shall ensure that the proposed
measure promotes the objectives of economy and efficiency, competition and openness of the
procurement system to wider participation, transparency, and accountability.

5.5. Electronic Submission

A Request for Sealed Quotations may provide for submission of quotations by facsimile
subject to the following:
(i) the fax machine is secured under lock and key; and
(ii) opening procedures similar to those for submission through a bid box are
applied.

28
 PART 6

The Bidding Process: Standard Bidding Documents and

Procurement Procedures
6.1. Standard Bidding Documents

6.1.1. Use of Standard Bidding Documents

(1) There are separate Standard Bidding Documents for the different types of
procurement: large and complex works (and a companion document for prequalification for such
procurement), procurement of works, procurement of goods, selection of consultants through
Request for Proposals, procurement of security/cleaning services and procurement of
services/non-Consultancy. Users should consult the instructions for use contained in each of
these Standard Bidding Documents.

(2) As an introduction to these documents, you will find below some general
observations about the Standard Bidding Documents.

6.2. Procedures for Open Advertised Bidding (Goods, Works and Other
Services)

6.2.1. Announcement of Invitation to Bid

(1) At the commencement of each Open Advertised Bidding proceeding, an

invitation to bid shall be published in a national newspaper in accordance with section 16 of the
Act, and shall provide potential bidders a period of at least 30 days from the date of publication
to prepare and submit bids. Such an invitation to bid may be displayed at the office of the public
body and shall, where feasible, also be published on the website of the public body and/or the
Procurement Policy Office.

(2) The Chief Executive Officer of the public body, prior to the issuance of an
invitation to bid or to apply for prequalification, shall ascertain the following:

(a) availability of a sufficient number of copies of the bidding documents; and

(b) compliance with the requirements of the Act and the Regulations.

(3) For Open International Bidding, the diplomatic missions accredited to the
Government of Mauritius, whose countries are potential sources for the procurement, may also
be served with the invitation to bid, or the invitation to apply for pre-qualification.

6.2.2. Provision of Bidding Documents

(1) In accordance with section 28 of the Act, the public body shall provide a
complete set of bidding documents to all bidders who have responded to the invitation to bid, or
to all bidders that passed prequalification, if prequalification proceedings were held.

29
 (2) Where public bodies do not offer free direct access to the entire bidding
documents and any supporting document by electronic means, the bidding documents shall be
promptly sent to bidders on receipt of the request to participate, and payment of the price, if one
is charged.

(3) The public body shall ensure that all interested bidders have access to bidding
documents, including by making those documents available for purchase in more than one
location, if deemed necessary, and whenever feasible, by download over the internet. No
bidder, who pays the price that may be charged for the bidding documents, shall be denied the
documents.

(4) Bidders interested in the bidding proceedings may preview the bidding
documents at the office of the public body indicated in the Invitation to Bid.

(5) In response to a written request and payment of the cost and postage, the public
body may mail/courier the documents; however the public body shall not be responsible if the
documents are not received in time.

(6) The details of sale of the bidding documents and submission of the bids shall be
recorded in a register maintained for the purpose. After the expiry of the time for submission of
bids, the designated office employee shall close the register.

6.2.3. Preparation of Bidding Documents

(1) Preparation of the bidding documents shall be the responsibility of the

procurement unit of the public body, if one has been established, in consultation with the end
user that submits a requisition for the procurement.

(2) Public bodies shall use the appropriate Standard Bidding Documents issued by
the PPO for the type of procurement in question. The information specific to the procurement in
hand shall be inserted in the spaces provided. The completed bidding documents should be
approved by the public body or the Central Procurement Board as the case may be, prior to
publication of the Invitation to Bid.

6.2.4. Contents of Bidding Documents

(1) While the exact contents of the bidding documents will vary according to the
nature and complexity of the procurement, the bidding documents shall include, at a minimum,
the following:

(a) a copy of the Invitation to Bid;

(b) Instructions to Bidders, consisting of standard instructions that remain

constant from one procurement action to the next; and

(c) the Bidding Data Sheet provides information specific to a procurement.

Bidding Data Sheet

The Bidding Data Sheet complements the Instructions to Bidders. On this form,
the public body identifies itself and provides general information about the

30
circumstances of the procurement. Here the public body sets out specific
requirements that the bidder must follow in preparing and submitting the bid,
including the following:

(i) any descriptive literature bidders are required to submit with their bids;

(ii) any requirement that bidders provide samples, and the number and
type of such samples;

(iii) any requirement that bidders view samples to which supplies must
conform, and the circumstances under which such requirements would
be waived;

(iv) any requirement that bidders submit a table of spare parts

recommended by the manufacturer along with the manufacturers
stock number for each item, the quantity, unit price, and an indication
of any escalation of prices for spare parts after the contractually
guaranteed period for spare-parts prices;

(v) any requirement that the bidder should state in the bid the country of
origin of the supplies, the name of the manufacturer, the brand name,
model and catalogue number;

(vi) if alternatives to the characteristics of the goods, works, services,

contractual terms and conditions or other requirements set forth in the
bidding documents are permitted, a statement to that effect, and a
description of the manner in which alternative bids are to be evaluated
and compared;

(vii) if bidders are permitted to submit bids for only a portion of the goods,
works or services to be procured, a description of the portion or
portions for which bids may be submitted;

(viii) the manner in which the bid price is to be formulated and expressed,
including a statement as to whether the price is to cover elements
other than the cost of the goods, works or services themselves, such
as any applicable transportation and insurance charges, customs
duties and taxes; whether the prices are to be fixed or adjustable and,
if so, the formula therefore; use of standard trade terms such as the
INCOTERMS is highly recommended to avoid disputes on the scope of
supplier obligations under the contract;

(ix) the currency or currencies in which the bid price is to be expressed;

(x) the language or languages in which bids are to be prepared;

(xi) any requirement of the public body with respect to the issuer and the
nature, form, amount and other principal terms and conditions of any
bid, and any performance security to be provided by the successful
bidder;

31
(xii) when a bid security is required, an indication of the form in which the
bid security must be issued in order to be in conformity with Regulation
28;

(xiii) an indication that (a) the withdrawal or modification of a bid after the
deadline for submission of bids has expired will result in forfeiture of
the bid security amount, and (b) bidder may withdraw its bid prior to the
deadline for the submission of bids without forfeiting its bid security;

(xiv) the manner, place and deadline for the submission of bids, in
conformity with sections 31 and 32 of the Act and Regulations 26;

(xv) the means by which bidders may seek clarifications of the bidding
documents, and a statement as to whether the public body intends, at
this stage, to convene a meeting of bidders, and, where applicable,
how to arrange site visits;

(xvi) the period of time during which bids shall be valid, in conformity with
section 34 of the Act;

(xvii) the place, date and time for the opening of bids, in conformity with
section 36 of the Act;

(xviii) the procedures to be followed for opening of bids;

(xix) the criteria and methodology to be used by the public body for the
examination, evaluation and comparison of bids and the determination
of the successful bidder, including any criteria other than price to be
used pursuant to section 37 of the Act and in accordance with the
Regulations;

(xx) the currency that will be used for the purpose of comparing bids and
either the exchange rate that will be used for the conversion of bids
into that currency or a statement that the selling rate for that currency
published by the Bank of Mauritius prevailing on the closing date of
bids will be used;

(xxi) references to the Act, Regulations and other laws and regulations
directly pertinent to the procurement proceedings, provided, however,
that the omission of any such reference shall not constitute grounds for
review under section 45 of the Act or give rise to liability on the part of
the public body;

(xxii) the functional title, address and other contact information (telephone,
fax and e-mail) of one or more officers or employees of the public body
who are authorised to communicate directly with and to receive
communications directly from bidders in connection with the
procurement proceedings, without the intervention of an intermediary;

(xxiii) any commitment such as the transfer of technology to be made by the

bidder under the procurement contract;

32
 (xxiv) notice of the right provided to a bidder under section 45 of the Act to
lodge a complaint against an unlawful act or decision of, or procedure
followed by, the public body in relation to the procurement
proceedings;

(xxv) a statement to the effect that the public body reserves the right to
reject all bids and to cancel the procurement proceedings pursuant to
section 39 of the Act;

(xxvi) in the absence of pre-qualification, the criteria and methodology for the
evaluation of the qualifications of bidders;

(xxvii) any formality that will be required once a bid has been accepted for a
procurement contract to enter into force, including, where applicable,
the execution of a written procurement contract in accordance with the
bidding documents;

(xxviii) any other requirement established by the public body in conformity with
the Act and Regulations relating to the preparation and submission of
bids and to other aspects of the procurement proceedings; and

(xxix) the requirements as to documentary evidence or other information that

must be submitted by bidders to demonstrate their eligibility and
qualifications.

(2) The following also form part of the Bidding documents:

(a) Schedule of Requirements and Technical Specifications, describing the

nature and required technical and quality characteristics of the goods,
works or services to be procured, including, but not limited to:

(i) technical specifications and/or desired function or performance,

plans, drawings and designs as appropriate;

(ii) the bill of quantities [in the case of a unit price works contract];

(iii) the quantity of the goods;

(iv) any incidental services to be performed;

(v) the location where the goods are to be delivered, works are to be
effected or the services are to be provided;

(vi) the desired or required time, if any, when the goods are to be
delivered, the works are to be effected or the services are to be
provided; any warranty and maintenance requirements;

(vii) the tests, standards and methods to be employed to judge the

conformity of goods or works with technical specifications provided
in the bidding documents; and

33
 (viii) any requirement that supplies, materials, spare parts should be
brand new and original.

(b) Bid Evaluation Methodology: the criteria and methodology to be used by

the public body for the examination, evaluation and comparison of bids
and the determination of the successful bidder, including any criteria other
than price to be used pursuant to section 37 of the Act;

(c) Contract Forms: the terms and conditions of the proposed procurement
contract, and the contract form, if any, to be signed by the parties,
consisting of the General Conditions of Contract, which remain constant
from one procurement proceeding to the another, and the Special
Conditions of Contract, in which conditions specific to the particular
procurement are set forth; and

(d) Standard Forms for the bid, bid security, agreement, performance security
and advance payment security.

Technical Specifications for Procurement of Goods

(3) Technical specifications for procurement of goods shall contain the following
elements and descriptions of requirements, to the extent applicable in the procurement
proceeding at hand:

(a) listing of the goods to be procured, including the required performance

characteristics, quantity, delivery times and incidental services (e.g.,
operating or descriptive manuals, training of public body's personnel,
installation, supplier's on-site personnel required, after sale service, etc.);

(b) required availability of spare parts and service during life of goods;

(c) descriptive literature or samples to be provided with the bid;

(d) description of any required performance or quality guarantee;

(e) technical configurations;

(f) inspection and quality testing to be conducted, including pre-shipment

testing and inspection;

(g) environmental impact and safety standards to be met by the goods; and

(h) criteria and performance tests or inspections for final acceptance.

Technical Specifications for Procurement of Works

(4) Elements to be addressed in technical specifications for procurement of works

shall contain the following elements and descriptions of requirements, to the extent applicable
in the procurement at hand:

34
 (a) general description of the scope and purpose of the works;

(b) precise description of scope of work to be carried out, i.e., elements such as
design, construction, erection, any manufacturing, installation of equipment,
etc.;

(c) physical nature and conditions of construction site;

(d) detailed listing of any equipment and components to be supplied;

(e) detailed design and drawings of work to be performed, to the extent they are
to be supplied by the public body under the contracting arrangement in
question;

(f) description of the works in terms of design details, drawings and/or

performance characteristics, including specific technical descriptions and
standards as to items such as plumbing, and electrical installations;

(g) environmental impact and safety standards to be met;

(h) description of performance and quality guarantees required;

(i) inspection and testing to be conducted at various stages of construction;

(j) completion tests;

(k) technical documentation, drawings, operating manuals to be provided by

suppliers;

(l) type and extent of training and supervision to be provided by suppliers, to the
extent applicable;

(m) inspection and performance tests to be passed for acceptance; and

(n) schedule of starting and completion time.

6.2.5. Bills of Quantities and Activity Schedules for Works

(1) Bidding documents for unit-priced works contract shall require bidders to quote their
prices for the items listed in the Bill of Quantities included in the bidding documents. The price
quoted shall include all quantities of materials, labour and the other inputs required to be
provided by the contractor in order to carry out the works.

(2) Bidding documents for lump-sum-priced contracts shall require bidders to submit a
priced activity schedule, on which the bidder breaks down the lump-sum price according to the
main activities involved in the progressive implementation of the procurement contract.

35
6.2.6. Description of Services Other than Consultancy Services
(1) Technical specifications for procurement of services other than consultancy
services shall contain the following elements and descriptions of requirement:
(a) general description of the scope and purpose of the service;

(b) description of the service and the tasks to be performed by the supplier,
as much as possible as performance requirements;

(c) conditions under which the service is to be performed;

(d) descriptive literature or samples to be provided with the bid;

(e) inspection and quality testing to be conducted;

(f) criteria and methods by which the public body intends to judge the
performed services;

(g) description of performance and quality guarantees required; and

(h) type and extent of training and supervision to be provided by supplier.

6.2.7. Price Adjustment

(1) A procurement contract may provide for the possibility of price adjustment to take
into account changes in economic circumstances. Price adjustment is not permitted unless
provided for in the procurement contract.

(2) Generally, price adjustment will not be permissible in the case of contracts with a
performance period of less than 12 months, and during the period of delay in performance if the
delay is caused by the supplier/contractor.

(3) If the procurement contract provides for the possibility of price adjustment, it shall
stipulate the conditions, such as increases or decreases in the cost of materials, labour, and
energy, in which price adjustment would be permitted, the formulas and indices to be referred to
in order to determine whether economic conditions have altered to a significant enough degree
to justify a price adjustment and to identify the amount of increase or decrease, the frequency
with which price adjustments may be implemented, and the procedures to be followed.

(4) The procurement contract may provide that, when the application of price
adjustment leads to a modification exceeding the initial price by the percentage stipulated in the
contract or by a percentage of the initial price of the balance of the contract, the entity may
terminate the contract.

(5) If the contractor fails to complete the works to be carried out under the work
schedule within the time limit as prescribed in the contract agreement due to unjustified delays
and taking more time than was prescribed to complete such a work, such a contractor shall not
be given the increased price amount as referred to in (1) above.

36
6.2.8. General observations concerning Standard Documents for Pre-
Qualification

(1) Application of Pre-qualification Procedures

The Act authorizes the use of pre-qualification procedures in order to determine

whether applicants are qualified before requesting the applicants to submit bids.
Prequalification is used especially for procurements of large or complex works.

(2) Invitation to Pre-Qualify

This document announces the procurement and is intended to provide applicants

with sufficient information to determine their interest in the procurement for which
the pre-qualification procedure is being conducted. The form is published in the
same manner as the Invitation to Bid in Open Advertised Bidding

(3) Instructions to Applicants

This document informs applicants of the rules and procedures the public body
will follow in conducting the pre-qualification. Applicants should be encouraged
to review this document carefully, and public bodies should understand the
document and be able to answer questions from applicants regarding the
sections of the documents.

(4) Summary of Procurement Data - Goods/Works or Services

The appropriate form must be completed for each pre-qualification proceeding

that is a preliminary to a procurement action. The information in each of these
forms provides the applicant with essential facts about the planned procurement.
The applicant needs this information in order to know if he is interested in
participating and for assessing his own capability to perform.

(5) Pre-qualification Data Sheet (PDS)

The information in the PDS complements and completes the instructions to the
candidates. The PDS is in two sections. In Section A, the public body identifies
itself and provides general information about the circumstances of this
proceeding. Here also the public body nominates a particular person as the
contact person for the public body. This is the person that applicants should
contact for any question about the procurement. To ensure fairness and
confidentiality of the process, it is important that all communication between
applicants and the public body flow through this contact person. In Section B,
the public body sets out specific requirements that the applicant must follow in
preparing and submitting its application. To complete this section, the public
body fills the place for submission and the precise date and time of the deadline
for submitting applications.

37
 (6) Schedule of Qualification Requirements

(a) This document informs the applicant about what he, as an entity, must
satisfy to be qualified to participate in this procurement. As proof that it
satisfies these requirements, the applicant must submit the specific
documentary evidence required.

(b) In the second section of this Schedule, the public body must identify the
specific qualification requirements that are considered necessary to
demonstrate that an applicant is capable of performing this particular
procurement.

(7) Application Form

This document is to be completed by the supplier or contractor when submitting

application.

(8) Pre-bid Conference

(a) The public body may organize a conference for the purpose of briefing
bidders and taking their questions on the bidding documents, including
the technical specifications and other requirements. Any such conference
should take place at an early point following the distribution of the bidding
documents to all the bidders who have responded, so as to allow bidders
to take into account the information they obtain at the conference in
preparing their bids. Clarification at the conference of defects or
ambiguities in the bidding documents does not relieve the public body in
such cases of the obligation to amend the bidding documents.

(b) If the public body convenes a meeting of bidders, it shall prepare minutes
of the meeting containing the questions submitted at the meeting and its
responses to those questions, without identifying the sources of the
questioner. The minutes shall be provided promptly to all bidders to
which the public body provided the bidding documents so as to enable
those bidders to take the minutes into account in preparing their bids.

(c) The public body shall issue an amendment to the bidding documents if
the pre-bid conference or other requests for clarification submitted in
writing result in a modification of any technical or commercial aspect of
the bidding documents. The amendment shall be mailed to all those who
purchased or received the bidding documents.

(9) Site Visits

In the case of major construction or industrial projects, the public body shall
arrange for site visits during or after the pre-bid conference, where such site
visits would facilitate the understanding of site realities on the part of potential
bidders.

38
6.2.9. Submission of Bids

(1) Bids shall be submitted to only one location, in accordance with the instructions
in the bidding documents.

(2) The bidder shall submit the bid signed, and accompanied by a power of attorney,
if so required, in the required number of copies and in a sealed envelope, as prescribed in the
bidding documents.

(3) If the bid is delivered by hand the public body shall, on request, provide a receipt
showing the date and time when its bid was received.

6.2.10. Reception and Security of Bids

(1) A public body shall maintain a securely-locked bid box into which bidders may
deposit their bids.

(2) If the size of the offer envelope makes it impossible to place them in the bid box,
such envelope shall be handed over to the officer in charge of the Registry of the public body,
who shall record the date and time of receipt, ensure that the bids are kept in a secure area and
handed over to the tender committee at the bid opening.
(3) In addition to direct deposit in the bid box, bids may be submitted by registered
mail, courier or any other means that may be specified in the bidding document.

(4) Any bid received in the manner provided for in paragraph (3) shall be promptly
placed in the bid box or secured and kept confidential.

(5) A public body shall ensure that all bids received are kept in a secure manner so
as not to permit the bids to be opened by accident or viewed.

(6) A bid received without proper sealing of the envelope or one accidentally opened
or opened by mistake, shall be resealed and inserted in the tender box or other safe location
together with other bids

(7) No disclosure of the bids shall be made to any person prior to opening of bids.

(8) Any sample submitted should be handled in a confidential and secure manner so
as not to lead to the disclosure of their characteristics prior to the opening of bids.

6.2.11. Bid Securities

(1) Requirements Applicable to Bid Securities

(a) A bid security shall be required in procurement where time is of the essence,
and the failure of the winning bidder to sign the procurement contract would
result in unacceptable delay.

(b) Prior to submitting a bid, a bidder may request the public body to confirm the
acceptability of a proposed issuer or confirmer of a bid security and the public
body shall respond promptly to such a request.

39
 (c) Confirmation of the acceptability of a proposed issuer or of any proposed
confirmer does not preclude the public body from rejecting the bid security on
the ground that the issuer or the confirmer, as the case may be, has
subsequently become insolvent or otherwise lacks creditworthiness; in such
an event, the bidder shall be permitted to replace the unacceptable security
by an acceptable one.

(d) The bid security shall be subject to a demand for payment only in the
following cases:

(i) if the bidder withdraws, cancels or substantially modifies the bid after the
bid opening, during its period of validity;

(ii) if the bidder does not accept a correction of an arithmetical error; or

(iii) if the bidder, having been notified of the acceptance of its bid during the
validity of the bid, fails to sign the contract if so required or fails to
furnish a performance security if so required.

(e) The public body shall make no claim to the amount of the bid security, and
shall promptly return, or procure the return of, the bid security, after
whichever of the following occurs earliest:

(i) the expiry of validity period of the bid security;

(ii) the entry into force of a procurement contract and the provision of a
security for the performance of the contract, if such a security is required
by the bidding documents;

(iii) the termination of the bidding proceedings without the entry into force of
a procurement contract; or

(iv) the withdrawal of the bid prior to the deadline for the submission of bids.

(2) Required Validity Period of Bid Security

(a) The bidding documents shall require that the bid securities provided by
bidders should have a validity period extending for a period of thirty days
beyond the expiry of the validity period of bids, in order to allow the public
body sufficient time to make a demand for payment under the bid security
in accordance with section 34 of the Act.

(b) Bid securities shall be returned to unsuccessful bidders once it is

determined that their bids will not be selected.

6.2.12. Bid Validity Period

(1) The bidding documents shall set a bid validity period that is of a sufficient length
of time to enable the public body to complete the examination, evaluation and comparison of

40
bids and to obtain all the necessary approvals so that the contract award can be notified within
that period.

(2) The bid validity period shall normally be 90 days for local bidding, 120 days for
international bidding, and a maximum of 180 days for exceptionally complex major projects.

(3) If, prior to the expiry of the validity period of bids the public body feels that
additional time will be required to complete all steps and notify an award, it should request all
bidders to extend the validity by the minimum period required to do so.

(4) Extension of validity is a decision of the bidder. A refusal to extend the bid validity
period shall not result in forfeiture of the bid security. Extension of the bid validity period shall,
however, be subject to extension of the bid security if one was required in the first place.
Without such an extension of the bid security, a bid shall be deemed not extended.

6.2.13. Cancellation of Proceedings before Opening of Bids

(1) Cancellation of procurement proceedings should be avoided unless it is clearly in

the public interest to do so. Cancellation is in the public interest in cases such as the following:

(a) when the object of the procurement is no longer required; or

(b) when the bidding documents have to be modified so substantially that it

would be more efficient and simple to cancel the bid invitation, revise the
documents and re-issue the invitation.

(2) If the procurement proceedings are cancelled before opening of bids, any bid that
have been received shall be returned unopened.

6.2.14. Opening and Evaluation of Bids

(1) Opening of Bids

(a) Bids shall be opened in only one location and at the time specified in the
bidding documents.

(b) At the opening of bids, in addition to the name and address of each
bidder whose bid is opened, the bid price and the price of any alternative
bid(s), shall be announced to those persons present and recorded in the
minutes of the bid opening, in accordance with section 36 of the Act.

(c) No decision as to the acceptance or rejection of any bid shall be taken or

announced in the bid opening session. Any important infirmity noticed
such as the absence of a bid security or discrepancy between figures and
words, absence of signature, unsigned corrections, or any other material
deviation from the bidding documents shall be announced and recorded
in the minutes.

41
(2) Rejection of Late Bids

(a) In accordance with section 32 of the Act, a bid received by the public
body after the deadline for the submission of bids shall not be opened
and shall be returned to the bidder that submitted it.

(b) The date and time of receipt of a late bid shall be noted in the report of
the procurement proceedings.

(3) Examination of Bids

(a) The process of examination and evaluation of bids shall be carried out
promptly after opening of bids, in an efficient manner, taking particular
account of the validity period of the bids.

(b) After the initial opening of bids in accordance with section 36 of the Act, a
preliminary examination of bids shall be carried out. The purpose of the
preliminary examination is to determine whether bids are substantially
responsive, i.e., whether they comply with the requirements of the bidding
documents as to the bids themselves and the accompanying documents.
This involves examining:

(i) whether all the required documents, including any standard forms
supplied with the bidding documents, have been submitted fully
completed;

(ii) whether the bidder has met the eligibility requirements, including
the requirements applicable by virtue of the involvement of a
financing institution;

(iii) whether the bid complies with bid validity period requirements set
forth in the bidding documents;

(iv) whether the bid substantially conforms with the contractual terms
and technical requirements set out in the Invitation to Bid and
Instructions to Bidders (e.g., with respect to scope of work,
delivery schedule, completeness of price quotation for the full
scope of work, compliance with key technical and commercial
requirements);

(v) whether the bid is conditional;

(vi) whether the bid has been signed by an authorized representative

of the bidder; and

(vii) whether a bid security (when one is required), in the amount and
format prescribed, has been provided.

(c) At the stage of preliminary examination, bids may be classified in the

following categories according to whether they contain deviations from

42
the technical specifications and contractual terms set forth in the bidding
documents:

(i) those bids that do not contain any deviation or reservation;

(ii) those that contain major deviations; a material deviation or

reservation is one

which affects in any substantial way the scope, quality or

performance of the works;

which limits in any substantial way, inconsistent with the

bidding documents, the rights of the public body or the
bidders obligations under the procurement contract; or

whose rectification would affect unfairly the competitive

position of other bidders presenting substantially responsive
bids.

(iii) A bid shall be rejected if:

the bidder that submitted the bid does not meet the
prescribed eligibility and qualification criteria, including
bidders that are debarred or suspended;

the bidder appears as prime bidder as well as a partner in a

joint venture (both bids shall be rejected);

the bidder that submitted the bid does not accept a correction
of an arithmetical error made;

the bid is not substantially responsive to the technical and

commercial requirements;

a bid security in the amount and format prescribed was not

provided, if such a security was required by the bidding
documents;

the bid form issued by public body has not been filled up and
submitted;

the bid is not signed;

the contractor working in joint venture has failed to submit a

certified copy of the joint venture agreement; and

the corrections in the Bill of Quantities are not signed or

initialed.

43
 (iv) those bids that contain minor deviations or reservations, but that
may be considered substantially responsive, shall be included in
the detailed evaluation and comparison of bids; in the evaluation
process the cost implication of the minor deviations, if any, shall
be taken into account. A substantially responsive bid is one that
conforms to all the terms, conditions and specifications of the
bidding documents, without material deviation or reservation.

(4) Evaluation of Plans and Schedules

In procurement of works, the Bid Evaluation Committee shall examine

construction and mobilization schedules, plans for the contractors site
organization, contract management and other relevant documents in order to
determine whether they comply with the requirements set forth in the bidding
documents.

(5) Correction of Errors

(a) The Bid Evaluation Committee shall correct any arithmetical error
appearing on the face of the bid, or in the Bill of Quantities, and inform the
bidder in question of the correction. The bid shall be rejected if the bidder
refuses the correction, and the bid security is thereby subject to forfeiture.

(b) If there is a discrepancy between the unit price and the line item total that
is obtained by multiplying the unit price and quantity, the unit price shall
prevail and the total price shall be corrected, unless, in the opinion of the
public body, there is an obviously gross misplacement of the decimal
point in the unit rate or a similarly obvious gross mathematical error, in
which cases the line item total, or total price, as the case may be, as
quoted will govern and the unit rate will be corrected.

(c) Where there is a discrepancy between the amounts in figures and in

words, the amount in words will govern.

(d) Should any contradiction occur in the information between the submitted
copies, the copy marked as the original shall prevail.

(e) The Bid Evaluation Committee may regard a bid as substantially

responsive even if it contains minor deviations that do not materially alter
or depart from the characteristics, terms, conditions and other
requirements set forth in the bidding documents or if it contains errors or
oversights that are capable of being corrected without touching on the
substance of the bid.

(f) The bidding documents shall distinguish between errors and omissions
that are properly subject to correction and those that are not, in both
prequalification and presentation of bids. A bidder shall not be
automatically disqualified for not having presented complete information,
either unintentionally or because the requirements in the bidding
documents were not clear. Provided that the error or omission in
question is subject to correction, the Bid Evaluation Committee shall

44
 permit the bidder to promptly provide the missing information or correct
the mistake.

(g) Certain errors or omissions, such as the failure to sign a bid or present a
guarantee, are not subject to correction. Nor shall a bidder be permitted
to correct errors or omissions that alter the substance of the bid or in any
way improve it.

(6) Detailed Evaluation of Bids

(a) Following the preliminary examination of bids, the Bid Evaluation

Committee shall proceed with the detailed evaluation and comparison of
the bids that have not been rejected in the preliminary examination stage.

(b) In the detailed evaluation of bids, the Bid Evaluation Committee shall
evaluate and then compare bids in order to determine the lowest
evaluated bid. In doing so, the Bid Evaluation Committee shall apply
only the evaluation criteria and methodology, if any, set forth in the
bidding documents.

(c) Any deviation shall be quantified, to the extent possible, and appropriately
taken into account of in the evaluation and comparison of bids, by way of
adjustments to bid prices that are for purposes of comparing bids only
and that are not to be reflected in the price of the procurement contract.

(d) In accordance with the requirements and evaluation criteria as set forth in
the bidding documents, the detailed evaluation of bids will involve the
evaluation of the technical, commercial and financial aspects of the bid.

(7) Domestic and Regional Margin of Preference

Where applicable, the financial evaluation stage shall involve the application of
price preference in favour of domestically manufactured goods and materials, if
any, and a regional price preference where the regional preference is applicable.
Any applicable preference must be stated in the bidding documents.

(8) Evaluation of Bids in Different Currencies

When bid prices are expressed in many currencies, for the purpose of evaluating
and comparing bids, the bid prices of all bids shall be converted to a single
currency, in accordance with the exchange rates prevalent on the closing date of
the bids as obtained from the Bank of Mauritius. Provision should be made in the
bidding documents accordingly.

(9) Detailed Evaluation of Bids for Civil Works

(a) The detailed evaluation of bids for civil works shall be conducted, in
general, along the lines mentioned above, with particular attention being
paid to the aspects specific to the civil works context, including:

45
 (i) consistency of work plans and schedules with the requirements in
the bidding documents, including with respect to aspects such as
timing of mobilization and construction methodology;

(ii) examination and analysis of reasonableness and reliability of unit

rates quoted for items listed in the Bill of Quantities; and

(iii) identification of unbalanced bids, in which unusually high prices

are quoted for items of work to be performed at an early stage in
the implementation of the contract (frontloading), or for items that
the contractor believes were underestimated in the bill of
quantities.

(b) When Bills of Quantity form part of the bidding documents, the Bid
Evaluation Committee shall verify that prices are not so low that the
bidder, if awarded the contract, would incur substantial financial losses
and, therefore, fail to complete the work satisfactorily, or that any
unrealistically low price reflect a misunderstanding of the specifications.

(c) The Bid Evaluation Committee shall identify unbalanced bids by

comparing unit prices quoted by bidders with the public bodys estimates
and corresponding prices quoted by other bidders.

(d) The Bid Evaluation Committee may reject a bid that is unrealistically low
or a bid that is unbalanced to the point that the frontloading substantially
impairs the ability of the public body to ensure it will obtain value for
money and otherwise properly manage the contract.

6.2.15. Cancellation of Procurement Proceedings after Opening of Bids

(1) In order to protect the integrity of the public procurement process, it is

essential that cancellation of procurement proceedings after opening of bids be avoided
to the greatest extent possible and strictly limited to exceptional cases.

(2) Cancellation of procurement proceedings after opening of bids is subject to

approval by the Chief Executive Officer of the public body, and may be permitted only in the
following cases:

(i) all the bids are non-responsive;

(i) the lowest evaluated bid is substantially above the applicable updated
cost estimate;

(iii) the object of the procurement is no longer required;

(iv) it has become necessary, in the public interest, to modify the

specifications or critical aspects of contract conditions;

(v) defects or gaps in the specifications have been revealed, which prevent
consideration of a substantially less expensive and functionally equivalent
item other than the one called for in the bidding documents, or which

46
 prevent consideration of all items of cost to the public body in the
evaluation process; or

(vi) there is evidence of collusion among bidders in setting bid prices. As per
section 39(1)(d) of the Act.

6.2.16. Rejection of all bids/Cancellation of procurement proceedings

In accordance with section 39 of the Act, notice of the rejection of all bids, or of
cancellation of the procurement proceedings, shall be given promptly to all bidders that
submitted bids. The notice shall state the grounds for the rejection of all bids, or for the
cancellation of the procurement proceedings.

6.2.17. Award of Contract

(1) Determination of the Lowest Evaluated Substantially Responsive Bid

(a) After completing the technical, commercial and financial evaluation, the
lowest evaluated substantially responsive bid shall be determined in
accordance with the provisions of the bidding documents.
(b) If no prequalification proceedings have taken place, the public body shall
conduct post-qualification proceedings to ensure that the bidder whose
bid has been evaluated as the lowest evaluated substantially responsive
bid has the financial and technical capability to execute the contract
satisfactorily, in accordance with the qualification requirements set forth in
the bidding documents. An affirmative determination shall be a
prerequisite for award of the contract to the bidder. A negative
determination shall result in rejection of the bid, in which event the public
body will proceed to the next lowest evaluated bid to make a similar
determination of that bidders capabilities to perform satisfactorily.

(c) If prequalification proceedings have been held, the public body may
request the bidder whose bid has been evaluated as the lowest evaluated
substantially responsive bid to confirm its qualification information in order
to ensure that it still has the financial and technical capability to execute
the contract satisfactorily.
(d) Subject to section 40 of the Act, the contract shall be awarded to the
bidder that submitted the lowest evaluated substantially responsive bid.
Such bidder shall not be required, as a condition of contract award, to
undertake responsibilities or works not stipulated in the bidding
documents or to modify the bid.

(2) Notification of Proposed Award (applicable to Major Contracts)

(a) Following the identification of the successful bidder in accordance with

section 40 of the Act, the public body shall provide notice of the proposed
award within five days from the date of receipt of approval from the
Central Procurement Board to the selected bidder.

47
 (b) Bidders shall be given a period of 7 days in the case of national bidding or
15 days in the case of international bidding from date of notification to
challenge the award.

(3) Acceptance and Entry into Force of Contract

(a) In the absence of a challenge for a major contract, a letter of acceptance

shall be promptly issued to the successful bidder.

In the case of a non-major contract the letter of acceptance shall be

promptly issued to the successful bidder after approval of the award.

(b) Unless the bidding documents indicate that a procurement contract is

required to be signed by both parties, the bidding documents shall
indicate that a contract in accordance with the terms and conditions of the
accepted bid and the bidding documents enters into force when that
notice is dispatched to the selected bidder provided that it is dispatched
while the bid is still valid. The notice is dispatched when it is properly
addressed or otherwise directed and transmitted to the bidder.

(c) When a procurement contract is required to be signed, the bidder shall do

so within a reasonable period of time after the notice is dispatched to the
bidder, in accordance with the time period indicated in the bidding
documents and the notice; between the time when the notice is
dispatched to the bidder and the entry into force of the procurement
contract, neither the public body nor the bidder shall take any action that
interferes with the entry into force of the procurement contract or with its
performance.

(d) In the event of failure of the bidder to sign a written procurement contract
in accordance with the bidding documents, if required to do so, or to
provide any required security for the performance of the contract, the
public body shall select the next lowest evaluated bid in accordance with
the evaluation criteria set forth in the bidding documents from among the
remaining bids that are in force.

(e) Public bodies shall not request or require the successful bidder to
sign a contract at variance with the terms and conditions set forth in
the bidding documents.

(f) In accordance with section 40 of the Act, the procurement contract shall
not be signed until 15 days have elapsed in case of international
procurement or 7 days in the case of local procurement since the giving
of notice to the successful bidder of the proposed award.

48
6.2.18. Award of contract on an item-wise or lot basis.

(1) Opening of Bids

(a) Where the bid documents allow for the evaluation of bids and award of
contract on an item-wise/lot basis, the total amount as well as the number
of items/lots for which the bidder has quoted shall be announced and
recorded in the minutes of the Bid Opening.

(b) Where the lowest quote for any single item/lot, or the total of the lowest
quotes exceeds the prescribed amount, the matter together with all
bidding documents shall be referred to the Central Procurement Board
(CPB).

(2) Evaluation of Bids

In situations other than that described in 1(b) above the public body may proceed
with the evaluation of bids as per established procedures. Bids in respect of all
items/lots shall be evaluated by the public body.

(3) Award of Contract

Following evaluation of bids in situations falling under 2 above, the public body
may proceed with the award of contract, subject to the following:

(a) the total contract value with any single bidder does not exceed the
prescribed amount; and

(b) the total value of the lowest evaluated bids falling under the bid exercise
does not exceed the prescribed amount.

Where the total contract value with any single bidder or the total value of the lowest
evaluated bids would exceed the prescribed amount, the public body shall not proceed with the
award of any contract falling under the said bidding exercise without approval of the CPB.

Worked Examples: Award of Contract on an item-wise basis

Case

A public body intends to purchase four items and the estimated costs is Rs 13.5 million.
The prescribed amount for the public body is Rs 15 million.

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 Scenario 1

A. Details of the offers received are as follows:

Item No Bidder A Bidder B Bidder C Bidder D

(Rs) (Rs) (Rs) (Rs)

1 1 million* N/A 1.2 million 1.1 million

2 8 million* N/A N/A N/A

3 800,000 500,000* 700,000 850,000

4 3.1 million N/A 3.3 million 3 million*

Bid Price 12.9 million 500,000 5.2 million 4.95 million

*Lowest Quote

In this scenario, the public body conducts the evaluation exercise as:

(a) The lowest bid (Rs 0.5 million) does not exceed Rs 15 million (prescribed
amount); and

(b) The total amount for the lowest price for each item does not exceed Rs 15
million.

The total amount is Rs 12.5 million (1m + 8m + 500,000 + 3m)

B. After examination and evaluation of bids, the following lowest substantially

responsive bids have been identified:

Item No Bidder A Bidder B Bidder C Bidder D

(Rs) (Rs) (Rs) (Rs)

1 1 million* N/A 1.2 million 1.1 million

2 8 million* N/A N/A N/A

3 800,000* 500,000 700,000 850,000

4 3.1 million N/A 3.3 million 3 million*

*Lowest substantially responsive bid

The public body approves the contract for all the items as:

(a) Each contract is below Rs 15m

Bidder A = Rs 9.8m
Bidder D = Rs 3m

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 (b) The total amount for all the lowest evaluated substantially responsible bids does
not exceed Rs 15m

Total amount = Rs 12.8m

Scenario 2

Details of the offers received are as follows:

Item No Bidder A Bidder B Bidder C Bidder D

(Rs) (Rs) (Rs) (Rs)

1 4 million N/A 5 million 5.1 million

2 8 million N/A N/A N/A

3 800,000 650,000 700,000 850,000

4 N/A 5 million 5 million 4 million

Bid Price 12.8 million 5.65 million 10 million 9.95 million

In this case, the public body should refer to Central Procurement Board for evaluation and
approval as:

(a) The total amount for the lowest price for all the 4 items exceeds Rs 15 million.

The total amount is Rs 16.65 million.

Please note that CPB should be referred to even if the lowest bid (Rs 5.65 million) is
below the prescribed amount.

Scenario 3

A. Details of the offers received are as follows:

Item No Bidder A Bidder B Bidder C Bidder D

(Rs) (Rs) (Rs) (Rs)

1 4 million N/A 5 million 6 million

2 8 million N/A N/A 5 million

3 800,000 500,000 700,000 1 million

4 N/A 5 million 5.1 million N/A

Bid Price 12.8 million 5.5 million 10.8 million 12 million

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The public body may proceed with the evaluation of the bids as:

(a) The lowest bid (Rs 5.5 million) does not exceed Rs 15 million (prescribed
amount); and

(b) The total amount for the lowest price for all the 4 items does not exceed Rs 15
million.

The total amount is Rs 14.5 million (4m + 5m + 500,000 + 5m).

B. After examination and evaluation of bids, the following lowest substantially

responsive bids (in bold) have been identified:

Item No Bidder A Bidder B Bidder C Bidder D

(Rs) (Rs) (Rs) (Rs)

1 4 million N/A 5 million 6 million

2 8 million N/A N/A 5 million

3 800,000 500,000 700,000 1 million

4 N/A 5 million 5.1 million N/A

The public should not approve the award of contract as:

(a) The total amount for the lowest evaluated substantially responsive bids for all the
four items exceeds Rs 15 million (prescribed amount).

The total amount for the lowest evaluated substantially responsive bids is Rs 17.5 million
(4m + 8m + 500,000 + 5m).

The matter and the bidding documents must be referred to Central Procurement Board.

6.2.19. Return of Samples

A sample having a material value submitted by a bidder shall be promptly returned after
any of the following occurs earliest:

(a) it is determined that his bid will not be selected; and

(b) it is established that the supply is in conformity with the sample provided.

6.3. Procedures for Procurement of Consultancy Services

6.3.1. Descriptions of Consultancy Services (Terms of Reference)
The Terms of Reference (TOR) shall specify the description of the consultants services,
such as:
(a) a description of the background of the assignment;

52
 (b) objectives, goals and scope of the assignment (including a list of existing relevant
studies and basic data) to facilitate the consultants preparation of their
proposals;
(c) scope of work and tasks to be performed and the deliverables to be submitted
(for example, reports, data, maps, surveys);
(b) outline of any transfer of knowledge or training that is required, including details
of number of staff to be trained;
(e) functions and qualifications of key personnel, and an estimate of the level of key
staff inputs (in staff-months) required of the consultants;
(f) location where the services are to be provided;
(g) desired or required time, if any, when the services are to be provided; anticipated
date on which the selected bidder shall be expected to commence the work;
(h) inputs to be supplied by the public body (e.g., services, facilities, equipment); and
(i) reporting requirements and procedures.

6.3.2. Invitation for Expressions of Interest and Preparation of Shortlist

(1) The public body shall seek Expressions of Interest through a public
advertisement in accordance with section 24 of the Act for the purposes of creating the shortlist
in the following cases:

(a) when the public body does not have information in its possession in order
to provide effective competition; and

(b) when the assignment for which the consultancy is sought is complex or
its estimated value exceeds 10 million rupees.
(2) The information requested shall be the minimum required to make a judgment
on the firms suitability and not be so complex as to discourage consultants from expressing
interest.
(3) The notice seeking Expressions of Interest shall include the following information:
(a) identification of and contact information of the public body;

(b) identification and general description of the assignment or project in

question, including the working location, and any project identification
codes;
(c) date of issuance of the notice, and closing date and instructions for
submission of expressions of interest;
(d) the funding source;
(e) the projected time period for implementation and completion of the
assignment;
(f) the qualification criteria to be met to be short-listed;

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 (g) in order to determine the capability and experience of consulting firms
seeking to be short-listed, the information requested shall include the
following:
a profile of the company, its organisation and staffing; in the case of
associations between two or more firms, the name, address and
profile of the participating firm(s), and nature of the association (e.g.,
joint venture, subcontract and the like). The lead firm must be clearly
identified;
details of experience or similar assignments undertaken in the
previous five years, including their locations; focus on the firms role in
similar assignments in the region or elsewhere; and
.
CVs of staff who could be available to work on the assignment.

(h) in the case of individual consultants, a CV shall be solicited;

(i) a statement that short-listed consultants will be invited to submit proposals;

and

(j) the number of copies of the requested information to be submitted, and the
address to which submission is to be made, and from which additional
information may be obtained.

(4) A minimum of 15 days from the date of publication of the notice shall be provided
for submission of Expressions of Interest.

(5) Consultants that expressed interest shall be informed of the final short list of firms.

(6) A short list of preferably six but not less than three firms shall be prepared
pursuant to the assessment of the information furnished. In preparing the shortlist, the public
body should endeavour to include different nationalities and backgrounds and, if possible, at
least one local firm. The object is to provide a wide variety of approaches for the client to
choose from.

(7) If there is not adequate number of responses to result in the minimum number of
three qualified firms, the advertisement shall be repeated.

(8) The final shortlist may also include well-qualified consultants that did not respond
to the solicitation of Expressions of Interest if there is a need to make up a minimum number.

6.3.3. Preparation of Shortlist in Other Cases

In all cases not covered above, the shortlist of three to about six qualified consultants
shall be prepared by the public body from past experience, institutional knowledge, or by
contacting local embassies, consultant associations, and other organisations without any public
invitation of Expressions of Interest.

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6.3.4. Letter of Invitation to Shortlisted Consultants and Issuance of Request for
Proposals

(1) The public body shall provide the Request for Proposals (RFP) to the short-listed
consultants containing preferably six bidders but not less than three, in accordance with section
24 of the Act.

(2) The letter of invitation shall inform consultants of the identity of the other
consultants on the short list of bidders being invited to submit proposals, and whether or not
associations between short-listed consultants are acceptable.

(3) The letter to the short-listed consultants shall request each invited firm to
(i) acknowledge receipt of the Request for Proposals , and (ii) inform the public body whether or
not it will be submitting a proposal.

6.3.5. Content of Request for Proposals for Services

In accordance to section 24 of the Act, the RFP, which is to be provided to consultants on

the short list, shall include:

(a) a copy of the letter of invitation;

(b) a requirement that consultants identify the proposed key personnel that will
carry out the assignment and that consultants provide the curriculum vitae of
each proposed key person, which must be accurate, complete, and signed
by an authorised official of the consultant and the individual proposed;

(c) information for consultants, including:

(i) details of the selection procedure to be followed, including:

a description of the two-step process in all cases, even in the fixed

budget selection procedure, with price envelope to be opened only
after completion of technical evaluation;

the criteria, the sub-criteria and weight to be assigned to each

criteria such as experience, methodology, and key staff to be used
in the evaluation of the technical proposals;

the details of the financial evaluation;

where applicable, the relative weights for quality and cost for the
combined evaluation (the weight for cost shall normally be in the
range of 10 to 20 percent, but in no case shall exceed 30 percent
out of a total score of 100);

the minimum pass score for quality;

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(ii) how the details on the public opening of financial proposals, where
applicable, will be communicated to participants, after the completion
of the technical evaluation;

(iii) an indication that consultants may propose their own methodology and
staffing, and may comment on the terms of reference in their
proposals;

(iv) an indication of minimum experience, academic achievement, and so

forth, expected of key staff;

(v) a statement that the firm and any of its affiliates shall be disqualified
from providing downstream goods, works, or services under the project
if, in the public bodys judgment, such activities constitute a conflict of
interest with the services provided under the assignment;

(vi) notice of conflict of interest restrictions and anti-fraud and anti-

corruption rules;

(vii) details of the procedure for clarification and modification of the RFP;

(viii) the manner of preparation of technical proposals;

(ix) the manner of preparation of financial proposals;

(x) the manner and language in which the proposal shall be submitted,
including the requirement that the technical proposals and price
proposals be sealed and submitted separately in a manner that shall
ensure that the technical evaluation is completed before opening price
proposals;

(xi) the procedure for opening proposals;

(xii) details of evaluation and selection procedures;

(xiii) the procedures and purpose of negotiations;

(xiv) the award procedure;

(xv) confidentiality rules;

(xvi) whether a pre-proposal conference will be held;

(xvii) inputs to be provided by the public body;

(xviii) the period for which the consultants proposals shall be held valid
(normally 60-90 days) and during which the consultants shall
undertake to maintain, without change, the proposed key staff, and
shall hold to both the prices and the total price proposed; in case of
extension of the validity period, the right of the consultants not to
maintain the validity of their proposal;

56
 (xix) statement indicating whether or not the consultants contract and
personnel shall be subject to tax, and where tax information can be
obtained; and a statement requiring that the consultant should include
in its financial proposal a separate amount, clearly identified, to cover
taxes;

(xx) the phasing of the assignment, if appropriate; and likelihood of follow-

up assignments;

(xxi) any condition pertaining to subcontracting part of the assignment; and

(xxii) forms including:

Standard forms for technical proposal;

Standard forms for financial proposal; and

The Terms of Reference (TOR).

6.3.6. Proposal Data Sheet

(1) Proposal Data Sheet complements the instructions to the candidates. On this
sheet the public body identifies itself and provides general information about the circumstances
of the procurement. Here the public body sets out specific requirements that the candidate
must follow in preparing and submitting its proposal. On this form the public body informs
candidates of the date, time and place of opening of proposals.

(2) The terms and conditions of the proposed contract, and the contract form, if any,
to be signed by the parties, consisting of the General Conditions of Contract, which remain
constant from one procurement proceeding to another, and the Special Conditions of Contract,
in which conditions specific to the particular procurement are set forth, also form part of the
Proposal Data Sheet.

6.3.7. Choice of Selection Procedure

(1) The public body shall use one of the following procedures for selection of the
winning proposal, in accordance with the notice provided to bidders in the Request for
Proposals:
(a) Quality and Cost Based Selection (QCBS), which takes into account both
the quality and the cost aspects in selecting the winning proposal;
(b) Quality-Based Selection (QBS), which considers quality alone in selecting
the winning proposal; or
(c) Budget-Ceiling Selection, in which the contract is awarded to the
proponent of the highest rated technical proposal, whose financial
proposal is within the available budget; and

57
 (d) Least Cost Selection, in which the contract is awarded to the lowest
priced proposal among those that have attained the minimum technical
score.
The successful proposal shall be determined only on the basis of the
selection procedure indicated in the Request for Proposals.

(2) Subject to paragraphs 3 and 4 below, the QCBS method shall be utilised as the
standard procedure.

(3) Use of the QBS method is appropriate for the following types of assignments:
(a) complex or highly specialised assignments for which it is difficult to define
precise TOR and the required input from the consultants, and for which
the client expects the consultants to demonstrate innovation in their
proposals (for example, country economic or sector studies, multi-sector
feasibility studies, design of a hazardous waste remediation plant or of an
urban master plan, financial sector reforms);
(b) assignments that have a high downstream impact and in which the
objective is to have the best experts (for example, feasibility and
structural engineering design of such major infrastructure as large dams,
policy studies of national significance, management studies of large
government agencies); and
(c) assignments that can be carried out in substantially different ways, such
that the cost of competing proposals are not comparable (for example,
management advice, and sector and policy studies in which the value of
the services depends on the quality of the analysis).
(4) Use of the Least Cost Selection method is more appropriate for assignments of a
standard or routine nature (audits, engineering/design of non-complex works, procurement
agents, and so forth) where well-established practices and standards exist and in which the
contract amount is small.

(5) The public body shall include in its report a statement of the grounds and
circumstances on which it relied to justify its choice of selection procedure.

6.3.8. Submission of Proposals

(1) In the case of all methods:

(a) the technical and financial proposals shall be submitted at the same time,
in separate sealed envelopes; and

(b) the technical envelopes shall be opened in the first stage. The financial
proposals shall remain sealed and in safe custody until the second stage.

(2) The public body shall set the deadline for submission of proposals providing not
less than thirty days from the date of the issuance of the Request for Proposals.

58
6.3.9. Evaluation and Selection
(1) Any award by the public body shall be made to the consultant whose proposal
best meets the needs of the public body as determined in accordance with the criteria and
methodology for evaluating the proposals and final selection procedures set forth in the Request
for Proposals.
(2) The evaluation of the proposals shall be carried out in two stages: first the
quality, and then the cost. Evaluators of technical proposals shall not have access to the
financial proposals until the technical evaluation is concluded. Financial proposals shall be
opened only thereafter.

(3) The Evaluation Committee report shall contain a record of the evaluation of each
proposal and the comparison between them. The report shall be submitted to the Board for
major contracts, along with the committees recommendation for award. After approval the CPB
shall forward the report to the head of the public body who will be responsible for the safe
custody of the report. In the case of non-major contracts, the report shall be forwarded by the
committee directly to the Departmental Tender Committee.

6.3.10. Substitution of Key Staff

The selected consultant shall not be permitted to substitute key staff, unless both parties
agree that undue delay in the selection process makes such changes unavoidable or that such
changes are critical to meet the objectives of the assignment. The key staff proposed for
substitution shall have qualifications equal to or better than the key staff initially proposed.

6.3.11. Evaluation of Proposals in Quality-And-Cost-Based Selection Procedure

(QCBS)

(1) The evaluation of the proposals shall be carried out in two stages. The first stage
of the evaluation shall concern only the quality and technical aspects of proposals. Evaluators
of technical proposals shall not have access to the financial proposals until the technical
evaluation is concluded.

(2) Financial proposals of only those that have achieved the minimum pass marks
shall be opened thereafter. The evaluation shall be carried out in full conformity with the
provisions of the Request for Proposals.

6.3.12. Criteria for Evaluation of Quality

(1) The criteria used to assess the technical merit of proposals shall be formulated in
a clear, precise, and objective manner.

(2) Each technical proposal shall be evaluated using the following criteria:

(a) the bidders relevant experience for the assignment;

(b) the quality of the methodology proposed;

(c) the qualifications of the key staff proposed;

59
 (d) transfer of knowledge, and

(e) the extent of participation by nationals among key staff in the

performance of the assignment.

(3) Use of sub-criteria of the above general criteria should be limited to what is
essential to conduct the evaluation. The key personnel of the consultants shall be rated
according to the following sub-criteria, as relevant to the task:

(a) general qualifications: general education and training, length of

experience, positions held, time with the consulting firm as staff,
experience in developing countries, and so forth;

(b) adequacy for the assignment: education, training, and experience in the
specific sector, field, subject, and so forth, relevant to the particular
assignment; and

(c) experience in the region: knowledge of the local language, culture,

administrative system, government organization, and so forth.

(4) The criteria and sub-criteria referred to above are indicative only and must be
formulated taking into account the specific circumstances of each procurement of consultancy
services.

(5) Each of the criteria shall be assigned a weight, in accordance with the following
principles:

(a) the weight given to experience can be relatively modest, since this
criterion has already been taken into account when short-listing the
consultant;

(b) more weight shall be given to the methodology and responsiveness to the
terms of reference in the case of more complex assignments (for
example, multidisciplinary feasibility or management studies);

(c) more weight shall be assigned to the qualifications and experience of key
personnel if the proposed assignment is complex; and

(d) when the assignment depends critically on the performance of key staff,
such as a project manager in a large team of specified individuals, it may
be desirable to conduct interviews.

(6) The following weights are indicative, and may be adjusted for specific
circumstances. The proposed weights shall be disclosed in the Request for Proposals, and shall
be formulated taking into account the following general guidelines:

60
 Consultants specific Up to 10
experience percent of
score
Methodology and 20 to 50
responsiveness to TOR percent of
score
Key personnel: 30 to 60
percent of
score
Transfer of knowledge 0 to 10 percent
of score
Participation by nationals: 0 to 10 percent
of score
Total 100 percent of
score

(7) The RFP shall establish a minimum passing mark for consideration and those
scoring below the minimum shall be rejected and excluded from further consideration.

6.3.13. Rejection of Proposals Based on Quality

Following the technical evaluation, the public body shall reject proposals that fail to
achieve the minimum threshold score as specified in the Request for Proposals.

6.3.14. Notification of Results of First Stage Quality Evaluation

(1) After the evaluation of quality is completed, the public body shall notify those
Consultants whose proposals failed to secure the minimum qualifying score, indicating that their
financial proposals will be returned unopened after completion of the selection process.

(2) The public body shall simultaneously notify the consultants that have secured the
minimum qualifying mark, and indicate the date and time set for opening the financial proposals.
The opening date shall not be earlier than two weeks after the notification date.

6.3.15. Quality Evaluation Report and Retention of Evaluation Records

The Technical Evaluation Committee shall prepare an evaluation report on the quality
of the proposals. The report shall substantiate the results of the evaluation and describe the
relative strength and weaknesses of the proposals. All records relating to the evaluation, such
as individual mark sheets, shall be retained until completion of the project and its audit, subject
to the requirements of section 42 of the Act.

6.3.16. Opening of Financial Proposals

The financial proposals shall be opened publicly in the presence of representatives of

the consultants who choose to attend. The name of the consultant, the quality scores, and the
proposed prices shall be read aloud and recorded when the financial proposals are opened.
The public body shall prepare the minutes of the public opening, which shall form part of the
record of the procurement proceedings.

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6.3.17. Evaluation of Financial Proposals

(1) For the purpose of evaluation, cost shall include Mauritius taxes, unless
otherwise specified, and also shall include other reimbursable expenses, such as travel,
translation, report printing, or secretarial expenses.

(2) The proposal with the lowest cost may be given a financial score of 100 and
other proposals given financial scores that are inversely proportional to their prices.
Alternatively, a directly proportional or other methodology may be used in allocating the marks
for the cost. The methodology to be used shall be described in the Request for Proposals.

6.3.18. Combined Quality and Cost Evaluation

(1) If the successful proposal is selected on the basis of a combined evaluation of

quality and price aspects, the total score shall be obtained by weighing the quality and cost
scores and adding them. Award shall be made to the proposal with the best combined score, in
accordance with the criteria and weighting disclosed in the Request for Proposals.

(2) The consultant submitting the proposal determined to be successful in

accordance with (1) above shall be invited for technical discussions aimed at finalization of the
contract.

(3) The negotiations may include discussions of the Terms of Reference, the
methodology, staffing, the clients inputs, and special conditions of the contract. The discussions
shall not substantially alter the original Terms of Reference or the terms of the contract.
Financial negotiations may include clarification of the consultants tax liability (if any) and how
this tax liability has been or would be reflected in the contract. Proposed unit rates for staff-
months and reimbursables shall not be negotiated, so as not to alter the cost structure that has
resulted in the ranking of the proposals. Major reductions in work inputs shall not be made
solely to meet the budget. The final Terms of Reference and the agreed methodology shall
form part of the contract under scope of services (which replaces the terms of reference).

(4) The selected Consultant shall not be allowed to substitute key staff, unless both
parties agree that undue delay in the selection process makes such substitution unavoidable or
that such changes are critical to meet the objectives of the assignment. If this is not the case
and if it is established that key staff were offered in the proposal without confirming their
availability, the consultant may be disqualified and the process continued with the next ranked
proponent. The key staff proposed for substitution shall have qualifications equal to or better
than the key staff initially proposed.

6.3.19. Failure to Reach Agreement with Successful Consultant

(1) If the discussions with the first selected consultant fail to result in an acceptable
contract, the public body shall, by letter addressed to that consultant, terminate the discussions
and invite the next ranked firm for discussions.

(2) The consultant with whom discussions are being terminated shall be informed of
the reasons for the termination. Once discussions are commenced with the next ranked firm,
the public body shall not re-open the earlier discussions. After discussions are successfully

62
completed, the public body shall promptly notify other bidders on the short list that they were
unsuccessful.

6.3.20. Rejection of All Proposals

The public body will be justified in rejecting all proposals only if all proposals are non-
responsive and unsuitable either because they present major deficiencies in complying with the
Terms of Reference, or all of them fail to score the minimum pass marks, or because they
involve costs substantially higher than the original estimate.

6.3.21. Selection Procedure Based on Quality (QBS)

Where the public body, in accordance with section 24 of the Act, uses the Quality Based
Selection, the selection process shall be identical to that applied in the Quality and Cost-based
Selection procedure, except as otherwise specified in this section. The public body shall
observe the following steps:

(a) establish a pass mark for quality;

(b) open the technical proposals and conduct the evaluation, comparison and ranking
of technical proposals; after opening the price proposal of the highest ranked
bidder, the consultant shall be invited for negotiations on price and technical issues;

(c) inform the consultants that did not attain the required minimum pass marks of the
fact and return their price proposals after the contract is signed with the successful
consultant;

(d) if it becomes apparent to the public body that the negotiations with the consultant
invited pursuant to (b) above will not result in an acceptable contract, inform that
consultant that it is terminating the negotiations; and

(e) the public body shall then invite for negotiations the consultant that attained the
second best rating; if the negotiations with that consultant do not result in a
procurement contract, the public body shall invite the other consultants for
negotiations on the basis of their ranking until it arrives at a procurement contract or
rejects all remaining proposals.

6.3.22. Selection Based on Least Cost

If, in accordance with the Request for Proposals, the Least-Cost Selection method is to
be used for determining the successful proposals, the QCBS procedure referred to above shall
be applied, except that the consultant whose financial proposal is the lowest among those
consultants whose proposals attained the minimum technical pass m arks, is invited for technical
and cost clarifications and negotiations with a view to conclusion of a procurement contract.

6.3.23. Selection Based on Budget-Ceiling

If, in accordance with the Request for Proposals, the selection based on maximum
budget is chosen, the QCBS procedure referred to above shall be applied, except that:

63
 (a) the proposals with price above the budget will be rejected and the proposal with
the highest score among the rest will be selected; and

(b) the selected consultant will be invited for detailed discussions of the technical
proposal to arrive at a satisfactory contract. If this discussion fails, the public body
will terminate the negotiations and initiate discussions with the next ranked
consultant.

6.3.24. Design Contests

In appropriate cases, such as the procurement of architectural designs or urban planning

designs, the public body may conduct a design contest for the purposes of selecting a design in
accordance with procedures approved by the PPO.

6.4. Procedures for Restricted Bidding

6.4.1. Limitation

(1) Restricted bidding may be used only in the limited circumstances detailed in
paragraph 5 Restricted Bidding.

(2) The proceeding applicable shall be the same as for open advertised bidding.

6.4.2. Database of Suppliers/Contractors

(1) The Restricted Bidding method presupposes that the public body has a database
or a list of potential suppliers.

(2) The following shall apply to the maintenance and use of registration and
classification systems in Restricted Bidding procedures, and to any database and list of
interested or approved parties:

(a) the database or list shall be maintained only for the information of various
public bodies, and non-inclusion in the database or list shall not preclude
consideration of a supplier if it meets the eligibility and qualifications
prescribed in the invitation documents; and

(b) requests to be classified, or to be entered in the database or list, shall be

receivable at any time from any interested party and shall be acted upon
within a reasonably short period of time.

(3) The existence of the classification system, database or list, the conditions to be
satisfied by parties to be entered in the classification system, database or list, the methods
according to which satisfaction of each of those conditions is to be verified, the period of validity
of an entry in the classification system, database or list and the procedures for entry and for

64
renewal of the entry shall be generally and regularly publicized in a manner to bring them to the
attention of interested parties; and listed parties shall be given prompt notice of their inclusion
or removal from the classification system, database or list in Mauritius may be required to
provide information and documents as prescribed by PPO.

6.5. Procedures for Request for Sealed Quotations (Goods/

Works/Services)

6.5.1. Use of the Request for Sealed Quotations

Request for Sealed Quotations, is a procurement method used for readily available
commercially standard goods not spec ially manufactured to the particular specifications of the
public body, small works, or small other services. The guidelines below are designed to provide
all the necessary information to conduct procurement through Request for Sealed Quotations.

6.5.2. Letter of Invitation

This section announces the procurement and is intended to provide bidders with details
of the contact person to whom request for clarifications on the bid document should be
addressed. To ensure fairness and confidentiality of the process it is important that all
communications between prospective bidders and the public body flow through this contact
person.

6.5.3. Contents of bid documents

A. Part 1 - Quotations Procedures

This section contains the Instructions to Bidders informing them of the rules and
procedures the public body will follow in conducting the procurement. Bidders should be
encouraged to read this document carefully, and public bodies should understand the
document and be able to answer questions from bidders regarding this section of the
documents.

This section also contains the Quotation Submission Sheet to enable bidders to submit
their total quoted amount for the procurement and their conditions in respect of the
validity period of the bid. They also make their declaration in respect of their eligibility,
and undertake to observe the ethical values as required by the Act.

B. Part 2 - Statement of Requirements

This section provides a brief of the goods, scope of works/services required and the
expected performance. It also contains a detailed list of goods /activity schedule which
would enable the bidders to provide a detailed breakdown of their quoted price
mentioned in Part 1.

The specifications are also provided in a tabular form in this section, and bidders are
invited to state their compliance as well as to qualify their deviations, if any.

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 C. Part 3 - Conditions of Contracts

This section states the General Conditions of Contract that will be applicable as well as
the data in respect of certain special conditions of the contract.

D. Schedules

This section contains format of Bid and Performance securities that should be submitted
by bidders, if so required.

6.5.4. Schedule of Qualification Requirements

(1) This section informs the candidate about what it must satisfy to be qualified to
participate in this procurement. As proof that it satisfies these requirements, a candidate may
be required to submit the specific documentary evidence.

(2) The public body must identify the specific qualification requirements that the
public body has decided are necessary to demonstrate that a candidate is capable of
performing this particular procurement.

6.5.5. Standard Quotation Documents for Goods: Technical Specifications

Here the public body states the needs to be satisfied by the procurement. The technical
specifications define what the public body wishes to buy and in turn what the supplier is
expected to supply or perform. Specifications must contain information to permit competition.
While specifications should be drafted in a manner that is not unreasonably restrictive, they
must still describe clearly and accurately all technical and other minimum needs of the public
body.

6.5.6. Schedule of Delivery

Here the public body must describe the details for delivery of the goods, quantity, date,
place and means. If the goods are to be delivered in lots, the schedule needs to list the delivery
details for each lot.

6.5.7. Standard Quotation Documents for Works

Implementation Designs and Technical Specifications: Here again the public body
states the needs to be satisfied by the procurement. The same principles referred to above for
goods, also apply to the design and specifications for works.

6.5.8. Schedule for Performance of Works

Here the public body should provide the key milestones and critical path for performing
the works. This schedule is used to monitor performance and also may be used to determine
the milestones for making progress payments.

6.5.9. Standard Quotation Documents for Services (non-Consultancy)

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 Here the public body states the needs to be satisfied by the procurement. The scope of
services defines what the public body wishes to procure and in turn what the service-provider is
expected to perform including results expected. The public body should describe the services,
set out the schedule for performance, and list the key personnel requirements.

6.5.10. Quotation and Acceptance Procedures

(1) The lowest priced quotation from among those that are fully compliant with the
technical and commercial terms in the invitation, shall be selected and a purchase order/Letter
of Acceptance issued to it.

(2) The public bodys purchase order constitutes an acceptance of the winning
bidders quotation and forms a legally binding contract.

(3) Any term or condition in the bidders confirmation of a purchase order that
change or alter the terms of the order shall be valid only if approved in writing by the public
body.

6.6. Emergency Procurement

6.6.1. Extreme Urgency

The conditions for use of this method are detailed in paragraph 5.2 Emergency
Procurement.

6.6.2. Limitations of Use

In the case of direct procurement without competition on the grounds of extreme urgency
referred to in section 21 of the Act, the public body shall limit the procurement to the quantity
and duration needed to deal with the urgent circumstances.

6.7. Direct Procurement

6.7.1. Permissibility of Direct Procurement

(1) A public body may resort to direct procurement:

(a) where only one supplier has the exclusive right to manufacture the goods,
carry out the works, or perform the services to be procured, and no
suitable alternative is available;
(b) for procurement not exceeding the thresholds as detailed in paragraph 5
Direct Procurem ent;
(c) for additional deliveries of goods by the original supplier which are
intended as partial replacement or extension of existing goods, services
or installation service, subject to the cost involved do not exceed 50% of
the original contract [section 25(c) of the Act and Regulation 44(3)]; and

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 (d) where additional works, which were not included in the initial contract
have, through unforeseeable circumstances, become necessary and the
separation of the additional works from the initial contract would be
difficult for technical or economic reasons; provided the extra costs do not
exceed 30% of the original contract - [section 25(d) of the Act and
Regulation 44(3)].

6.7.2. General Policy of Diligence

(1) Prior to awarding the procurement contract by way of direct procurement, the
public body shall ascertain that:
(i) the item to be procured is not available in existing stores or under
applicable framework agreements;

(ii) the provider possesses the qualifications required to perform the

procurement contract,

(iii) the quality and technical aspects of the providers proposal meet the
public bodys requirements; and

(iv) the price to be paid to the provider is fair and reasonable.

6.7.3. Procurement of Functionally Equivalent Goods

Direct procurement may not be justified on the grounds that only one bidder has the
capacity or the exclusive right to manufacture or deliver goods, works or services if functionally
equivalent goods, works or services from other bidders would meet the needs of the public
body.

6.8. Procurement through Community and End-User Participation

6.8.1. Use of the procurement through Community and End-User Participation

Method

(1) In the interest of providing employment to local communities and the involvement
of end-users, a public body may decide to execute small construction works, including
maintenance and repair, through local User Committees. The applicable maximum threshold
value, the public bodys obligation to provide design and technical inputs, responsibilities for
supervision and quality control and other related matters shall be specified by the public body in
consultation with the PPO.

(2) For procurement through a User Committee, the PPO shall establish procedures
to ensure:

(a) clarity as to the cases in which a users committee can be utilised, which
should normally be labour intensive and where better value may be
obtained by the participation of the community and end user;

(b) that the arrangement with the User Committee is on the basis of an
agreement signed between the public body and the User Committee,

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 which stipulates the outputs, the users role, mechanisms for community
representation, reporting obligations, budget, and procedures for
supplementary procurement;
(c) effective mechanisms for representation of the user;
(d) effective and accountable use of the funds involved for the specified
objectives and outputs, including the monitoring of implementation; and

(e) record-keeping obligations.

6.9. Procurement by Departmental Execution

6.9.1. Use of the Procurement Method

Procurement by departmental execution may be effected only in the limited

circumstances as detailed in paragraph 5 Departmental Execution.

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 PART 7
Contract Administration

7.1. Introduction
(1) Selecting the right supplier or contractor is only the first phase of public
procurement for which the public body is responsible. Contract administration is of critical
importance to the proper functioning of the procurement system and to the assurance that the
purposes of the procurement will be achieved. The subject is covered in Part VII of the Act and
in Regulations 60 to 67 of the Public Procurement Regulations 2008.

(2) It is often important for the public body to establish a contract administration team
to organize the effort. For example, for a contract for works, the initial steps in contract
administration include the following:

(a) holding post-award conferences with the successful bidder, where

necessary, and devising a specific contract administration plan;

(b) development of a contract implementation work plan and schedule;

(c) monitoring progress, including determination of extent of performance

accomplished periodically according to the work plan, and inspection and
testing of quality aspects;

(d) arranging possession of and access to site;

(e) management of the financial aspects of contract implementation,

including payments to suppliers, and budgetary and cost accounting
aspects;

(f) organisation of files relating to contract implementation, preparing

periodic reports on the implementation of contracts; and

(g) certifying due performance

(3) For goods contracts it will be important to arrange for pre-shipment

inspection, perhaps engaging an external agent, and for receiving and acceptance of the
goods in accordance to Regulations 60 and 61, reproduced hereunder:

60. Inspection and Acceptance of Goods

(1) The public body shall establish appropriate procedures and
mechanisms for inspecting and examining supplied goods in
accordance with applicable supply management procedures.

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 (2) The public body may designate one or more agencies to supervise
and inspect the performance with the technical requirements of
procurement contracts and applicable quality standards.
(3) The inspecting official or agency designated under paragraph (2)
shall inspect and examine the supplied items and compare with the
stamped and approved samples and other specifications, putting
aside the rejected goods to be returned to the supplier. The
inspecting official or agency shall examine varying percentages
following principles of statistical sampling methods.
(4) The inspecting official shall prepare an inspection report indicating
acceptance or rejection of the goods. The report shall indicate the
percentage that the inspecting official has examined, the names,
specifications, results of testing.
(5) In the event of a dispute between the supplier and the inspecting
official or agency, such dispute shall be submitted to the dispute
settlement procedures under the procurement contract.

. 61. Acceptance report

(1) An acceptance report by the public body shall contain the following -
(a) the contract reference number;
(b) a description of the item or service received;
(c) the date of delivery and acceptance;
(d) the authorised signature in writing, or in electronic form
where that form is acceptable to the public body and
provides the requisite security.
(2) An acceptance report shall be transmitted promptly to the appropriate
disbursement authorities for payment.

7.2. Contract Terms

The procurement contract must be as per the terms and conditions set out in the bidding
documents.

7.3. Payment
(1) Payment to contractors on a timely basis in accordance with contract terms is
essential to the integrity of the procurement system. Section 47 of the Act emphasizes the
importance of timely payment. Unpaid contractors lose their incentive to do good work and
inevitably raise their prices in future procurements.

(2) Subject to the terms of the procurement contract, payment shall be made on the
basis of the submission and acceptance of a proper invoice. Upon receipt of an invoice, the
public body shall promptly notify the supplier within 5 days in the event that the invoice is not
deemed proper, stating the grounds for that determination. The procurement contract shall
define the manner and timing of payment.

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 (3) In the case of procurement of goods, the invoice shall be accompanied by any
shipping or other required documents, in the prescribed form which may be obtained from the
public body. Prior to effecting payment, the officer responsible for payment shall establish the
availability of the appropriate supporting documents, including payment vouchers attached to
relevant invoices, local purchase orders, and cross-references to local purchase orders or
procurement reference numbers.

(4) Payments that become due to the supplier shall be made in accordance with the
deadlines set forth in the procurement contract, failing which, the supplier shall be compensated
by payment of interest in accordance with the provisions of the procurement contract. If the
procurement contract provides for a prompt payment discount, such a discount shall be applied
if the public body makes payment in accordance with the terms of the prompt payment discount
provision.

(5) An advance payment may be made against an advance payment security

wherever applicable in an amount in accordance with the procurement contract, as set out in the
Standard Bidding Documents issued by the Policy Office, and as indicated in the procurement
contract.

(6) The procurement contract may provide for the making of progress payments, for
example on a monthly basis, based on the actual work performed as measured by the
Engineer/Project Manager and recorded in the measurement book or in accordance with
performance milestones identified in the contract and having been achieved, or based on actual
quantities delivered or completed. Progress payments shall be issued in accordance with the
contract, upon presentation and acceptance of such documentation as required by the
procurement contract to evidence the progress in performance. Notwithstanding the above,
where progress payments are made, the procurement contract may provide that a percentage
of amounts due may be withheld until performance of the procurement contract is completed.

(7) Final payment shall be made once performance of the procurement contract has
been completed and accepted by the public body. The procurement contract may mandate that
the contractor provides to the public body a release from claims related to the contract as a
condition for final payment, subject to exceptions including:

(a) specified claims;

(b) contractors liability to third parties stemming from performance of the

procurement; and

(c) claims for reimbursement of costs based on liability incurred to third

parties in performance of the procurement contract, provided the claims
are not known to the Contractor as at the date of signature of the release.

7.4. Contract Modifications

(1) The public body and the contractor must agree in writing to any contract
amendment or modification that alters the basic nature or scope of the contract. Section 46 of
the Act provides that, except in certain cases, an amendment that increases the contract value
by more than 25 percent requires fresh procurement proceedings.

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 (2) For the purpose of dealing with unforeseen circumstances that may occur, the
contract may permit the public body to issue a variation order requiring the supplier to
implement technical changes in the quantity or delivery time of the goods, construction works or
services to be supplied. Issuance of variation orders shall be subject to budgetary provisions,
and when the use of such orders is more likely to achieve value for money than engaging in
bidding proceedings in accordance with the restrictions on use of direct procurement without
competition.

7.5. Termination and Breach

(1) Section 48 of the Act establishes a particular authority for the public body to
terminate a procurement contract for its convenience, upon a determination that because of
changed circumstances the continuation of the contract is not in the public interest. This
remedy is specifically intended for special and unforeseen cases, and should be sparingly
utilized.

(2) In the event of a termination for convenience, the contractor is entitled to

reimbursement of expenses incurred in contract performance, but not the recovery of profits
anticipated on the completion of the contract.

(3) In the event of breach of contract by the supplier/contractor, the procurement

contract shall specify remedies available to the public body. Those remedies include, but are
not limited to:

(a) rejection for unsatisfactory performance;

(b) prompt removal and replacement of defective goods;

(c) liquidated damages for delay, in accordance with a rate set for each week or
other unit of time, or part thereof, of delay;

(d) termination of the contract and purchase of replacement performance, at the

expense of the defaulting party; and

(e) such other remedies as may be available pursuant to the contract or to

applicable law.

7.6. Record Keeping

Section 50(3) of the Act makes clear the responsibilities of every public body to record
and preserve all documentation relating to any procurement proceedings in such manner as
may be prescribed. Such documents are given at the Appendices.

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 PART 8
CHALLENGE AND APPEAL

8.1. Provisions of the Act

The Act contains a modern system for the adjudication of challenges presented to the
public bodies during the course of the procurement. The system provides assurances to the
public of the transparency and integrity of the public procurement system.

8.2. Bid Challenge Procedure

The Act provides that a bidder or potential bidder who claims to have suffered, or to be
likely to suffer loss or injury due to a breach of duty imposed on a public body or the Board by
the Act may challenge the procurement proceedings at any time before the entry into force of
the procurement contract. The challenge is first directed to the Chief Executive Officer of the
public body involved. If the bidder is not satisfied with the decision of the Chief Executive
Officer, he may submit an application for review to the Review Panel. An application for review
after the entry into force of a procurement contract shall be made directly to the Review Panel.
Sections 43 and 45 of the Act and Regulations 48 to 59 reproduced hereunder contain detailed
procedures concerning the disposition of the challenge and review.

(a) Sections 43 & 45 of the Act:

43. Challenge

(1) A bidder who claims to have suffered, or to be likely to suffer, loss or

injury due to a breach of a duty imposed on a public body or the Board by
this Act may challenge the procurement proceedings at any time before
the entry into force of the procurement contract.

(2) A challenge shall be in writing to the Chief Executive Officer of the public
body concerned and identify the specific act or omission alleged to
contravene this Act.

(3) A challenge shall not be entertained unless it is submitted

(a) in the case of a challenge under section 24(12) or 40(4), within the
time specified in the relevant subsection; or

(b) in any other case within such time as may be prescribed.

(4) Unless the challenge is resolved, the Chief Executive Officer of the public
body shall suspend the public procurement proceedings and shall, within
such time period as may be prescribed, issue a written decision, stating
his reasons, and, if the challenge is upheld, indicating the corrective
measures to be taken.

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45. Right of review

(1) An unsatisfied bidder shall be entitled to ask the Review Panel to review
the procurement proceedings where -

(a) the Chief Executive Officer of the public body does not issue a
decision within the time specified in section 43(4);

(b) he is not satisfied with the decision; or

(c) before or after the entry into force of a procurement contract the
value of which is above the prescribed threshold, he is not
satisfied with the procurement proceedings on a ground specified
in section 43(1).

(2) An application for review under subsection (1) shall -

(a) be in writing;

(b) specify the reasons for making the application; and

(c) be made within such time as may be prescribed.

(3) (a) An applicant for a review shall be required to make a deposit as

may be prescribed for filing the application.

(b) Where the Review Panel determines that the application was
frivolous, the deposit made shall be forfeited.

(4) Where an application for review is made in accordance with this section,
the procurement proceedings shall, subject to subsection (5), be
suspended until the appeal is heard and determined by the Review Panel.

(5) The suspension provided by subsection (4) shall not apply where the
public body certifies that urgent public interest considerations require the
procurement proceedings to proceed.

(6) A certificate issued by a public body pursuant to subsection (5) shall

expressly state the grounds of the urgent public interest considerations
and shall be made a part of the record of the public procurement
proceedings.

(7) A certificate issued by a public body pursuant to subsection (5) shall be

binding on the Review Panel and the procurement proceedings shall
proceed unless an application for leave to seek a judicial review is
successful.

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 (8) The Review Panel shall make a decision under this section within 1
month of the date of submission of an application for review under
subsection (2).

(9) Where the procurement proceedings have not been suspended under
subsection (5), and the application for review of an unsatisfied bidder is
determined in his favour, the Review Panel shall award him
compensation limited to the recovery of the costs of bid preparation and
participation in the procurement proceedings.

(10) The Review Panel may dismiss an application for review or may, if it
determines that there is merit in it, order one or more of the following
remedies -

(a) prohibit the public body from acting or deciding in an unauthorised

manner or from following an incorrect procedure;

(b) recommend the annulment in whole or in part of any unauthorised

act or decision of the public body;

(c) recommend a re-evaluation of the bids or a review of the decision

for an award, specifying the grounds for such recommendation; or

(d) recommend payment of reasonable costs incurred in participating

in the bidding process where a legally binding contract has been
awarded which, in the opinion of the Review Panel, should have
been awarded to the applicant.

(b) Regulations 48 to 59:

48. Challenge and appeal procedures

(1) A challenge under section 43 of the Act shall be made in the form set out
in the Second Schedule.

(2) For the purposes of section 43(3)(b), a challenge shall not be entertained
unless it is submitted within 5 days from the invitation to bid or from the
opening of bids.

(3) Where the challenge concerns any aspect of the procurement process
prior to the award of the contract, the Chief Executive Officer of the public
body concerned shall in the case of a major contract, obtain all relevant
information from the Board.

(4) Unless the challenge is resolved by mutual agreement, the Chief

Executive Officer of the public body shall issue a written decision stating
his reasons within 15 days of the filing of the application.

(5) Where the Chief Executive Officer of the public body fails to issue a
decision within 15 days or if the bidder is not satisfied with his decision,
the bidder may submit an application for review to the Review Panel,

76
 provided that the application is filed within 15 days of receipt of the
decision of the public body or the time when that decision should have
been received.

(6) For the purposes of section 45(1) (c) of the Act the threshold shall be
1million rupees.

(7) An application for review under section 45(1)(c) of the Act, from an
unsatisfied bidder after the entry into force of a procurement contract the
value of which is above the prescribed threshold, as specified in
paragraph (6), stating that he is not satisfied with the procurement
proceedings on a ground specified in section 43(1), shall be made within
5 days of the date the applicant becomes aware of alleged breach.

49. Required contents of application for review

An application for review by the Review Panel shall be made in writing in the
form set out in the Third schedule .

50. Filing of application

(1) A challenge or an application for review may be filed by hand delivery,

mail or commercial courier.

(2) A challenge or an application for review is deemed to be filed on a

particular day when it is received by the public body, or, where applicable,
by the Review Panel, by close of business on that day.

51. Security Deposit for an application for review

(1) The submission of an application for review shall be accompanied by a

deposit as follows

(a) where the application relates to the award of a major contract, an

amount equivalent to the bid security;

(b) in any other case 10,000 rupees or 50 per cent of the bid security,
whichever is the higher.

(2) The security deposit shall be forfeited where the Review Panel dismisses
the application as frivolous.

52. Notice of application for review

(1) Where an application for review is made to the Review Panel, the Review
Panel shall notify the public body within one day after the filing of the
application and, unless the application for review is dismissed, shall
promptly send a written confirmation to the public body and an
acknowledgment to the applicant.

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 (2) Where the application for review is filed in the first instance with the
Review Panel, the applicant shall furnish a complete copy of the
application for review, including all attachments, to the public body not
later than one day after the application for review is filed with the Review
Panel.

53. Disclosure by public body

(1) The public body shall promptly make available to the Review Panel any
information and documentation that the Review Panel may request,
including:-

(a) the bid or proposal submitted by the applicant;

(b) the bid or proposal of the bidder that is being considered for
award, or whose bid or proposal is being reviewed;

(c) all qualification assessment and evaluation documents;

(d) the invitation to bid or Request for Proposals, including the

specifications;

(e) the abstract of bids or proposals;

(f) requests for clarification of the bidding documents or Request for

Proposals and responses thereto; and

(g) any other relevant documents.

(2) In appropriate cases, the Review Panel may request the applicant to
produce relevant documents, that are not in the custody of the public
body.

(3) The Review Panel may request or allow the submission of additional
statements by the parties and by other parties not participating in the
application for review as may be necessary for the fair resolution of the
application for review.

54. Expeditious delivery of communications

All communications related to the application for review shall be sent promptly to
the Review Panel.

55. Comments by public body on application for review by Independent

Review Panel

(1) Where an application for review is filed with the Review Panel, the public
body shall provide to the Review Panel comments on the application
within 10 days of the notice of the filing of the application for review with
the Review Panel.

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 (2) The comments of the public body shall include

(a) a statement of the relevant facts;

(b) a best estimate of the contract value ;

(c) an assessment of the grounds for review; and

(d) a list of all documents relevant to the procurement proceedings.

(3) The public body, may file a request for dismissal before filing the
comments referred to under paragraph (1).

(4) The public body shall simultaneously send a copy of its comments on the
application for review to the applicant within one day of the submission of
the comments to the Review Panel.

(5) The applicant shall be given an opportunity to comment on the comments

of the public body on the application for review.

(6) The applicant may submit to the Review Panel a reply on the comments
made by the public body within 7 days of the receipt by the applicant of
the public body s comments, and copied to the public body.

56. Dismissal of Application for Review

An application for review may be dismissed for

(a) failure to comply with any of the requirements of sections 43 to 45 of the

Act, and these Regulations;

(b) setting forth allegations that do not state a valid basis for an application
for review, or that do not set forth a detailed legal and factual statement;

(c) having been filed in an untimely manner, either at the initial level of review
by the public body, or with respect to deadlines for filing an application for
review by the Review Panel; or

(d) contract implementation or administration instead of contract award.

57. Hearings

(1) At the request of the applicant for review or on its own initiative, the
Review Panel may, where it deems appropriate, conduct a hearing.

(2) A hearing shall be conducted as soon as practicable after receipt of

comments and relevant documents from the public body.

(3) The Review Panel shall request the applicant and the public body
concerned to attend a hearing.

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 (4) The Review Panel may restrict attendance during all or part of the
proceeding where it considers appropriate.

(5) During the hearing all proceedings shall be recorded and transcribed.

58. Recording of dispositions

Any decision by the public body or the Review Panel pursuant to section 45 of
the Act, shall be made part of the record of the procurement proceedings.

59. Notice to the Independent Review Panel

The public body shall promptly notify the Review Panel and the Policy Office of
the action it has taken in response to the decision of the Review Panel.

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 PART 9
Procurement Integrity

9.1. Conduct of Public Officials

(1) A central theme of the procurement reform is procurement integrity, evident in

transparency, fairness and accountability of the procurement proceedings. It is also manifest in
the high standards for professional conduct of the public officers involved in procurement.

(2) These standards are spelt out in section 51 of the Act. They include the impartial
discharge of public duties; conduct in the public interest; avoidance of conflict of interest; refusal
to commit corrupt or fraudulent acts or to solicit or accept improper inducements; keeping
proprietary information confidential; and refraining from accepting a position of authority for a
period of 2 years after leaving public service in a private concern with which an officer has had
official dealings.
.
(3) No public official and close relative shall participate as a bidder or supplier in the
public procurement proceedings of that public body.

(4) No award of a procurement contract shall be made directly to such official or any
body in which he or his close relative is employed in a management capacity or has substantial
financial interest.

9.2. Conduct of Bidders and Suppliers

(1) Procurement integrity depends upon good conduct by the community of bidders
and suppliers as well. Section 52 of the Act clearly describes certain conduct, most especially
corrupt or fraudulent conduct, including the offering or giving of improper inducements intended
to influence a procurement process or the execution of a contract. Collusion between bidders is
also forbidden.

(2) If an improper inducement or other corrupt practice is identified, the public body
shall reject the bid and notify the Policy Office accordingly.

(3) A bidder is restricted from participating in a procurement where he previously

was responsible for preparing the specifications or the bidding documents.

9.3. Suspension and Debarment

A bidder or supplier who is debarred implies that he is precluded from future government
contracts for a determined period.

9.4. Procedure for Suspension and Debarment

The Public Procurement (Suspension and Debarment) Regulations 2008 reproduced at

Appendix B1 lay down the procedure and other aspects of suspension and debarment of
potential bidders and suppliers.

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 PART 10
Miscellaneous

10.1 Oath of Office

The form for the Oath of Office for public officers involved in procurement, and members of the
Policy Office, the Board, and the Review Panel provided in the Fourth Schedule of the Public
Procurement Regulations 2008 is reproduced below:

OATH

I, _______________________, being appointed Chairman/Vice Chairman/Member/Officer*

of the Procurement Policy Office, the Central Procurement Board, or the Independent
Review Panel do hereby swear/solemnly affirm that I shall, to the best of my judgment,
act for the furtherance of the objectives of that organisation and shall not, on any
account and at any time, disclose, otherwise than with proper authorization or where it is
strictly necessary for the performance of my duties, any confidential information
obtained by me in virtue of my official capacity.

Taken before me, __________________________________________________________

________________________________________________________________________

Master and Registrar of the Supreme Court

*delete as necessary

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10.2 Declaration of Assets

The form for the Declaration of Assets by public officers involved in procurement, and members
of the Policy Office, the Board, and the Review Panel provided in the Fifth Schedule of the
Public Procurement Regulations 2008 is reproduced below :

DECLARATION OF ASSETS

I,______________________________ of __________________________________ make

oath/solemn affirmation as a ___________________________________ and declare that -

1. I am unmarried/married under the system of _______________________________

(matrimonial regime).

2. My assets (extent, nature of interests therein, liabilities regarding these assets) are as
follows

(a) landed property: ___________________________________________________

(b) residential, commercial or industrial building: _____________________________

(c) motor vehicles: ____________________________________________________

(d) boats: ___________________________________________________________

(e) shares: __________________________________________________________

(f) interest in partnership or socit: _______________________________________

3. The assets of my spouse/minor children (extent, nature of interests therein, liabilities

regarding these assets) are as follows:

(a) landed property: ___________________________________________________

(b) residential, commercial or industrial building: _____________________________

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 (c) motor vehicles: ____________________________________________________

(d) boats: ___________________________________________________________

(e) shares: __________________________________________________________

(f) interest in partnership or socit: _______________________________________

4. My liabilities (other than those relating to the assets referred to at paragraph 2)

are as follows:-
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

5. The liabilities of my spouse/minor children (other than those relating to the assets
referred to at paragraph 3) are as follows:-
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Signature _____________________________________________________________

Sworn/solemnly affirmed by the above-named before me at this day ________________

of 20..

Master and Registrar Supreme Court

84