Policies and Procedures

MANUAL

Procurement&Inventory Management
of PIFRA Assets

December, 2012

Project to Improve Financial Reporting and Auditing

(PIFRA), Islamabad.

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Table of Contents

Acronyms: ..................................................................................................................... 4
List of Annexures– Standard Templates of Procurement Documents ............................................. 5
List of Appendices- Notifications ............................................................................................................ 5
Chapter-1. Introduction, Rationale and Definitions ........................................................ 6
Introduction and Rationale ............................................................................................. 7
Standards of Conduct ...................................................................................................... 7
Integrity ........................................................................................................................... 7
Definitions ....................................................................................................................... 8
General Procurement Policy ........................................................................................... 8
Principles of Procurement............................................................................................... 8
Procurement Responsibilities ......................................................................................... 8
Rules/Guidelines Applicable............................................................................................ 9
Scope of this Manual ..................................................................................................... 11

Chapter-2. Procurement Policies .................................................................................. 12

Procurement Cycle ........................................................................................................ 12
Market Intelligence ....................................................................................................... 13
Advertisement Policy .................................................................................................... 13
Procurement Methods for Goods and Services ............................................................ 13

Chapter-3. Procurement Procedures ............................................................................ 16

Process of Procurement Planning ................................................................................. 17
Procurement of Works and Services ............................................................................. 18
Procurement of Consultancy Services .......................................................................... 25

Chapter-4. Post Procurement Processes ....................................................................... 32

Operational Acceptance Testing (OAT) ......................................................................... 33
Monitoring Performance/Contract Administration ...................................................... 34
Audit of Procurement.................................................................................................... 34
Warranty ....................................................................................................................... 34
Record of Contracts/POs ............................................................................................... 34

Chapter-5. Inventory Control Policies and Procedures .................................................. 35

Objectives of Inventory Control Policies and Procedures ............................................. 36
Applicable Scope ........................................................................................................... 36

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Responsibilities of Inventory Controller........................................................................ 38
Responsibilities of Person/Office Using the Assets. ...................................................... 38
Inter Office, Wing, Section Transfer of Assets .............................................................. 39
Requisition and Procurement of Assets ........................................................................ 40
Physical Stock Taking of Assets & Excess/Shortage Adjustments ................................. 40
Depreciation .................................................................................................................. 40
Maintenance, Repair & Up-gradation. .......................................................................... 40
Disposal of Assets .......................................................................................................... 41
Codification of Assets .................................................................................................... 42
Sensitive Property ......................................................................................................... 43
Fittings & Fixtures of Buildings ...................................................................................... 43
Loss Prevention Measures ............................................................................................ 44
Reconciliation of Assets with Financial Records and Transfer to Ultimate
Beneficiaries of Project ................................................................................................. 44

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ACRONYMS
1. AO: ................................................................................... Accounts Officer.
2. B & A: .......................................................................... Budget & Accounts.
3. BoQ: ................................................................................ Bills of Quantities.
4. CE: ........................................................................................ Chief Engineer.
5. DAGP: ..................................... Department of Auditor General of Pakistan.
6. DCA: .........................................................Development Credit Agreement.
7. DG: .................................................................................... Director General.
8. EOI: ........................................................................... Expression of Interest.
9. GoP: ....................................................................... Government of Pakistan.
10. H/Q: ......................................................................................... Headquarters.
11. IBRD: ....................International Bank for Reconstruction & Development.
12. ICB: ....................................................... International Competitive Bidding.
13. IDA: ............................................... International Development Association.
14. IFB:................................................................................. Invitation for Bids.
15. IFQ: ...................................................................... Invitation for Quotations.
16. IT: .......................................................................... Information Technology.
17. NCB:.............................................................National Competitive Bidding.
18. NOL: ............................................................................. No Objection Letter.
19. OAT:......................................................... Operational Acceptance Testing.
20. PD: ......................................................................... Project Director, PIFRA.
21. PID: ..............................................................Press Information Department.
22. PIFRA: ...................... Project to Improve Financial Reporting & Auditing.
23. PO: ....................................................................................... Purchase Order.
24. PPRA: ........................................ Public Procurement Regulatory Authority.
25. PR: .............................................................................. Purchase Requisition.
26. PSDP: ................................................ Public Sector Development Program.
27. RD: ..............................................................................Regional Directorate.
28. RFP: ........................................................................... Request for Proposals.
29. RFQ: ........................................................................ Request for Quotations.
30. TORs: ........................................................................... Terms of Reference.
31. WB: .......................................................................................... World Bank.

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List of Annexures
S TA N D A R D T E M P L AT E S O F
PROCUREMENT DOCUMENTS.
Annex 1 : Invitation for Quotations (IFQs)Form
Annex 2: Comparative StatementForm
Annex 3 : Purchase OrderForm
Annex 4 : Operational Acceptance Testing (OAT) ReportForm
Annex 5 : Assets Coding Form
Annex 6 : Assets Issuance Form
Annex 7 : Assets Loss / Damage ReportForm
Annex 8 : Assets Disposal AdviceForm
Annex 9 : Assets Upgradation and Maintenance RequisitionForm
Annex 10: Purchase RequisitionForm
Annex 11: Delivery Form
Annex 12: Log of Purchase Orders
Annex 13: Asset Transfer AdviceForm
Annex 14: Log of Purchase Requisitions
Annex 15: Laptop Issuance Form
Annex 16:Codification Scheme
Annex 17: Asset RegisterForm
Annex 18: Building InventoryForm

List of Appendices - Notifications:

1. Appendix A: Bid Evaluation Committee for H/Q and Regional Directorates.

2. Appendix B: Delegation of Powers for H/Q and Regional Directorates.

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 Chapter 1

Introduction, Rationale and

Definitions

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1. INTRODUCTION AND RATIONALE

This document provides guidelines for all officials / officers / consultants / contractors who
aredirectly or indirectly involved in processes related with procurement in PIFRA. The Project
to Improve Financial Reporting and Auditing (Hereinafter referred to as “PIFRA”) is a Public
Sector Development Program Project funded by the World Bank. Management of affairs of the
Project has been entrusted to Project Directorate, PIFRA established under the Auditor
General of Pakistan being the project executing agency.
The Project aims atimprovement of governance through an integrated financial management
system of the country. This entails, among other things, procurement, receipt, issuance and
installation of requisite movable assets including hardware and equipment etc. at various
project sites. These sites, after being made operational, shall then be transferred to the
stakeholders all over the country.
2. STANDARDS OF CONDUCT
The personnel engaged in procurement are expected to avoid any action andrelationship,
actually or potentially detrimental to the best interest of state or which may result in
impropriety. Therefore, these personnel shall not accept gifts, entertainment, trips orother
items of value from suppliers, either past, current or prospective. Contravention tothis standard
shall attract the relevant provisions of the applicable conduct rules of Government of Pakistan
for disciplinary actions. The information relating to procurements is of aconfidential nature. It
is not permissible that proprietary or confidential informationis divulgedto or shared with any
prospective bidder, person, firm or supplier.
3. INTEGRITY
All officers/staff having any authority in the matter of procurement shall maintain standards
ofintegrity in their business relationships. They must maintain highest standards offinancial
propriety, business ethics, professional courtesy and competence at all times. Such standards,
amongothers, may include:
a) Affording fair and equal treatment to all bidders and their representatives.
b) Guaranteeing the confidentiality of all quotations till they are duly declaredopen.
c) Explaining clearly the grounds for rejection of any bids, goods or services.
d) While awarding contracts competitively or selecting bidders for pre-qualification,
thesupplier most likely to provide the best overall value shall be selected.
Elementstypically evaluated in the selection process shall include, but not be limited to,
base bid price,and ability to meet special requirements, as well as the supplier's financial
stability,management capability, prior experience, past performance, and demonstrated
ability todeliver on schedule. Depending on complexity of the contract, PIFRA reservesthe
right to add appropriate terms and conditions as required by a particular transaction.
4. DEFINITIONS
4.1. Assets: include all durable goods, as distinct from expendable stores or supplies, with a
useful life of more than one year.
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4.2. PIFRA: PIFRA means Project to Improve Financial Reporting and Auditing, an IDA
assisted PSDP project of the Department of Auditor General of Pakistan (DAGP).
4.3. Project Director (or PD): Project Director (or PD) means project director of PIFRA as
notified by the DAGP.
4.4. Best Value. The Best Value method of procurement incorporates cost, quality and
other specified requirements to achieve a resulting award that is fair, efficient,
competitive (in accordance with World Bank Procurement Guidelines / Public
Procurement Rules, 2004), and meets all of the procurement objectives.
4.5. Bid. A vendor’s formal price offered in response to anInvitation for Bids (IFB).
4.6. Professional Services. The services of attorneys, architects, engineers, accountants,
consultants or other individuals havingrequisite qualifications.
4.7. Public Works Services. Services for the erection, construction, alteration, installation,
repair orimprovement of any structure, buildingor other public improvement of any
kind paidfor in whole or in part out of project funds.
4.8. Purchase Order. A legally binding document issued by the Procurement Wing of
PIFRAspecifying goods or services ordered from a supplier. Procurement Wing or the
RD (as the case may be) issuing purchase orders shall maintain a Log of Purchase
Orders (Annex 12) on permanent basis where all purchase orders shall be entered
invariably.
4.9. Request for Quote (RFQ) or Invitation for Quotation (IFQ). The document used by
the Procurement Wing to solicit competitive quotations from suppliers in accordance
with the rules.
4.10. Rules. Rules refer to World Bank Procurement Guidelines and/or Public Procurement
Rules, as applicable in a given situation.
4.11. Request for Proposal (RFP). A document used to solicit proposals for professional
services as per relevant rules.
4.12. Sole Source Acquisition (Exception to Bid). When in the best interest of state, a
procurement process in which a specific good or service is procured from a single
source without competition as only a sole source situation meets the requirement.
4.13. Public Procurement Rules, 2004: Rules notified by the Public Procurement
Regulatory Authority as amended from time to time and available on PPRA Website
(www.ppra.org.pk ).

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5. General Procurement Policy
The purpose of this manual is to devise policies and procedures under PIFRAforprocurement
of goods and services and contracting human resources. These policies and procedures are
designed to ensure timely,efficient, and economic procurement, within the framework ofWorld
Bank Procurement Guidelines (for all procurement to be done through IDA funds) in a
transparent way.Unless otherwisestated, these policies and procedures will apply to all
procurementactions whereverIDA funds are involved.
6. Principles of Procurement
Basic principle is that all purchases and procurements shall be reasonable and necessary (i.e.,
no unnecessary item shall be purchased). Other principles to be followed in matters relating
toprocurement are:
a. Economy, Efficiency and Effectiveness (3Es): Only items that are essentially required for
the efficient and effective operations of PIFRA will be purchased in most economic
manner.
b. Public Access and Transparency: The principle will be observed in accordance with the
guidelines given in Rule 47 of the Public Procurement Rules, 2004, in case of government
funds.
c. Accountability: All procedures and practices will provide foradequate measures for
demonstrating desired level of accountability.
d. Procurement Governance:All procedures and processes have to be appropriately applied
to ensure goodgovernance in procurement matters.
7. Procurement Responsibilities
7.1. Overall procurement responsibilities are entrusted to PIFRA Directorate as identified in
Annex-13(G) of the Project Appraisal Document (PAD) of PIFRA-II, which reads as
under:
“The Project Directorate of PIFRA I1 will carry out all procurement activities in liaison with the
DG Audit DAG HRM/Training, CGA, MOF, FDs and Provincial AGs, which are the
Implementation Agencies of the four components of the project. It is headed by a Project Director
and is staffed by Director Audit Component, Director CGA Component, Director FABS, General
Manager MIS, Director Training, Director Change Management Component and Director
General - Coordination and a Director General - Procurement.”
“A fully dedicated Director General Procurement, supported by a Director Procurement and
specialist staff will form the basis of a stronger procurement unit for PIFRA 11, but until this
arrangement takes root the procurement capacity of PIFRA remains weak.”
7.2. It is the responsibility of Director General (Procurement) to ensure implementation of the
policiesand procedures contained in this manual.All other officers/officialof PIFRA in any
way connectedwith procurement matters shall also have similarresponsibly to adhere to
the relevant provisions of this Manual. Various wings/sections of PIFRA
responsible/empowered for different procurement activities are identified below:

Task Responsibility
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Procurement through IDA funds Procurement Wing
Procurement through GoP funds Administratiion Wing
Preparation of Procurement Plans Component Heads / Procurement
Wing
Approval of Procurement Plan PD / World Bank
Posting of plan on PIFRA website Procurement Wing
Initiation of procurement Component heads
Approval of procurement Project Director
Defining & RecommendingMethod of procurement Procurement Wing
Implementation of procurement Method Procurement Wing
Seeking NOL from WB Procurement Wing
Soliciting the quotations / tenders Procurement Wing (IDA Funds)
Administration Wing (GOP Funds)
Constituting a Bid Evaluation Committee in case of Project Director
goods and works
Constituting Selection Committee in case of consultants. Project Director
Issuing Purchase Order (PO) /Work Order Procurement Wing(IDA Funds)
Administration Wing (GOP Funds)
Award of Contracts, amendments and variations thereto Project Director
Inventory Management Inventory Controller
Ensuring that delivered items/services are in accordance Officers/Officials assigned OAT
with defined specifications / quality parameters responsibilities
Maintenance of Record/ Original Tender Securities, Procurement Wing
Performance Guarantees/Bonds &Bank Guarantees etc.
Receipt &Processing of Bills, IPCs etc. Procurement Wing: On
recommendations from respective
component, RD and Dy. Chief
Engineer at RD and then vetting &
recommendations from Procurement
Expert or the Chief Engineer at
PIFRA Head Office.
Pre-audit of Bills/IPCs and to seek approval from Administration & Operations
Project Director through DG (Admin & Ops), PIFRA Wing/Consultant (B & A)
and issuance of cheques/release of payment and
maintenance of updated payment ledgers. as per
Delegation of Powers (Appendix B)
Safe Custody, Security and Upkeep of Assets Inventory Controller and Concerned
Officers/Officials of the Stakeholders
assigned responsibility by the
respective office.
8. Rules/Guidelines Applicable
8.1. PIFRA Procurement Policy/Procedures.
Except otherwise specified in the relevant World Bank Guidelines or rules of the
Government of Pakistan, the provisions of this Manual shall be strictly adhered to in all
procurement matters. In case of any conflict with theWorld Bank Guidelines or Rules of
the Government, the latter guidelines/rules shall prevail.In this connection General Clause
5 of the Public Procurement Rules, 2004 is also relevant which is reproduced below:
“Whenever these rules are in conflict with an obligation or commitment of the Federal
Government arising out of an international treaty or an agreement with a State or States,

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 or any international financial institution the provisions of such international treaty or
agreement shall prevail to the extent of such conflict.”
8.2. Public Procurement Rules, 2004.
PIFRA will adhere to the Public Procurement Rules 2004, issued by Public Procurement
Regulatory Authority (PPRA), as amended from time to time and posted onto their
website www.ppra.org.pk ,whereapplicable.
8.3. Guidelines: Procurement under IBRD Loans and IDA Creditsavailable on website of the
World Bank.
8.4. Guidelines: Selection and Employment of Consultants available on website of the
World Bank.
9. Scope of this Manual
9.1. Scope of this manual is limited to procurement actions involving IDA funds.

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 Chapter 2

Procurement Policies

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1. PROCUREMENT POLICIES
1.1 Procurement Cycle
1.1.1 Procurement Cycle at PIFRA is depicted in
1.1.2 Figure 1.
1.1.3 First stage is preparation of Procurement Plan. Overall Procurement Plan for
the project period is available in Annex-13(J) of Project Appraisal
Document (PAD) of PIFRA-II which reads as under:
“The borrower has developed a procurement plan for project
implementation which providesthe basis for the procurement methods. This
plan has been agreed between the Borrower and theproject team on June
1,2005 and is available in the files o f both the Bank and PIFRADirectorate
in Islamabad. It will also be available in the project’s database and in the
Bank’sexternal website. The procurement plan will be updated in agreement
with the project teamannually or as required to reflect the actual project
implementation needs and improvements ininstitutional capacity.”
1.1.4 A summary of the procurement plan in also included in PC-I of the Project
againstQuestion No. 7 with details provided in the relevant annexes.
1.1.5 Procurement plan will be reviewed and revised on need basis. Latest version
may be made available on PIFRA website.

Quarterly
review and
revision

Figure 1 Procurement Cycle of PIFRA

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1.2 Market Intelligence
Procurement Wing will make necessary arrangements for market intelligence.
Procurement Expert will develop, update and maintain database of prices and
suppliers of items procured from time to time (as defined in the Procurement Plan)
and maintain profiles of suppliers. The database shall be updated on monthly basis
and a report will be submitted to Director (Procurement) for information.
1.3 Advertisement Policy
1.3.1 The policy of PID will be followed in award of the advertisement to the
advertising agencies and selection of newspapers. PID will indicate a panel
of the advertising agencies. PIFRA will give advertisement to the agencies
on turn by turn basis.
1.3.2 Advertisement will be given in at least two national dailies (combined
circulation).
1.3.3 Advertisement with specifications will also be posted on website of PIFRA
as well as PPRA.
1.4 Procurement Methods for Goods and Services
PIFRA uses three basic procurement methods for the procurement of goods and
services: (1) National Shopping, (2) National Competitive Bidding (NCB), (3)
International Competitive Bidding (ICB). Detail of each methodis given in the
succeeding paragraphs:
1.5 National Shopping
1.5.1 PIFRA will use methodof national shopping to procure small quantities of
office supplies and equipment. In such a case, advertisement is not required.
Procurement is based on minimum three quotations. However, purchases
will be made from suppliers offering the best value in price, support
services, and delivery procedures. Purchase orders are not used for
consultant services and subcontracts, travel advances and reimbursements,
monthly or periodic bills (e.g., rent, telephone, utilities, equipment leases,
and maintenance agreements), minor recurring expenses (e.g., courier
services), and items paid from petty cash. Purchase Order (Annex 3) will be
prepared by the Procurement Expert, with the approval of the Project
Director / DG (Procurement), and shall clearly describe the item(s) being
purchased, the estimated purchase price, and the purpose of the purchase,
where required.
1.5.2 Threshold for goods and works as defined in following para will be
followed for implementation.
1.5.3 As defined in Development Credit Agreement (DCA) signed between
Government of Pakistan and IDA / World Bank and Procurement
Guidelines under IBRD Loans and IDA Credit, limit for national shopping
is US$ 50,000 in case of goods and US$ 100,000 in case of
works.Procurement through National shopping methodis subject to post-
review.
1.5.4 National shopping cases can be processed by the Procurement Wing and
RDs with the approval of Project Director. However, if national shopping is
to be carried out by RDs,prior approval of PD shall be obtained through
Procurement Wing.

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Condition / limit Method Remarks
1.1 Procurement less than $US50,000 National shopping Post-review (audit after
for goods completion)
1.2 Procurement less than $US100,000 National shopping Post-review (audit after
for works completion)
2. Above limits upto US$ 200,000 National Competitive Post-review (audit after
Bidding (NCB) completion)
3. Above US$ 200,000 International Competitive Prior-review (NOL
Bidding (ICB) sought before
processing the case)
1.6 National Competitive Bidding (NCB)
1.6.1 The method of NCB involves advertisement in the national press.
Competition is open to national bidders. The limit applicable is US$50,000
– US$200,000 in case of procurement of goods and US$100,000 –
US$200,000 in case of works.
1.6.2 Procurement Wing alone is authorized to make procurement through NCB.
1.7 International Competitive Bidding (ICB)
The method of International Competitive Bidding (ICB) is required to be used when
estimated cost exceeds US$ 200,000. In this case, prior approval from World Bank
is requiredat each of the steps involved in procurement process.Only Procurement
Wing alone is authorized to make procurement through ICB.
1.8 Procurement of Consultancy Services
For procurement of consultancy services, “Guidelines for Selection and
employment of consultants by World Bank Borrowers”, is to be followed.Limits
defined for different types of contracts are given in Table I below:
Table 1
Limit Methods Remarks
Upto US$ 100,000 Selection based on consultants Post-review (audit after
qualification OR Qualification completion)
based selection of consultants
Above US$ 100,000 Quality and cost based Prior-review (NOL sought
selection before processing the case)
Individual consultant Based on three CVs or Prior-review (NOL sought
advertisement. Advertisement before processing the case)
is optional
1.9 Sole Source Basis
1.9.1 PIFRA may opt for direct contracting if following conditions are fulfilled as
perClause 3.7 of the World Bank Guidelines for Procurement of Goods,
Works, and Non-Consulting Services:
“3.7. Direct contracting is contracting without competition (single-source) and
may be an appropriate method under the following circumstances. The
Borrower shall submit to the Bank for its review and no objection a sufficiently
detailed justification, including the rationale for direct contracting instead of a
competitive procurement process and the basis for recommending a particular
firm in all such cases, except for contracts below a threshold defined on the

15
basis of risks and the scope of the project, and set forth in the Procurement
Plan:-------
(c) the required equipment is proprietary and obtainable only from one source;
(d) the procurement of certain goods from a particular supplier is essential to
achieve the required performance or functional guarantee of an equipment
or plant or facility;”

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 Chapter 3

Procurement Procedures

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1. PROCUREMENT PROCEDURES
Basic procedure of procurement for PIFRA is outlined in the Financial Management
Manual of PIFRA (p. 12) as follows:
“All procurement of goods, services and civil works shall be made according to Schedule 3
of Development Credit Agreement (DCA). Section H Para 2.19 to 2.23 of the SAR contains
elaboration on the subject and shall always be consulted for guidance on the subject. The
Procurement Wing shall be responsible for procurement of goods and services subject to
the World Bank’s Guidelines. The Procurement Wing shall use committees notified with the
approval of Project Director PIFRA (Appendix A) while processing procurement of
goods, services and civil works of PIFRA. The Component Managers shall be responsible
to provide technical specifications and related details for goods and services required for
the Project. To facilitate smooth implementation of the project, the Regional Directors
shall be allowed to procure goods and services subject to the prior approval of the Project
Director and financial limits indicated in the Financial Manual. The Regional Directors
shall send their demands for the approval of the Project Director PIFRA. All procurements
of goods and services will be arranged by procurement wing. The same guidelines that are
applicable to procurement of goods, services and civil works in the Procurement Wing of
the PIFRA shall be applicable to the Procurement in the regional directorates
(operations).”
1.1 Process of Procurement Planning
1.1.1. IDA funds procurement is responsibility of the Procurement Wing and
purchases through government (GoP) funds is the responsibility of the
Administration Wing of PIFRA.
1.1.2. Procurement Wing will prepare Annual Procurement Plan with input from
all components. The components of PIFRA will prepare their respective
annual procurement plans at least two months by October each year and
submit the same to Procurement Wing after seeking approval from
respective Component Chiefs. The Procurement Wing of PIFRA will
consolidate plans received from all components and develop an overall
annual procurement plan for the project and submit to the PD for approval
before forwarding the same to World Bank for obtaining NOL for approval.
1.1.3. The Procurement Plan will be reviewed by the Procurement Wing on need
basis or after every quarter and revised plan will be submitted to the PD for
approval before being referred to the World Bank. In case the proposed
limits are beyond limits of PC-I (maximum relaxation is 15%), then option
of revision of PC-I of the project shall be required.
1.1.4. The revised procurement plan will then be placed on the website of PIFRA
to facilitate bidders / suppliers and other key stakeholders.
Procurement Planning Process is depicted in the following Figure 2:

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 PC-I PAD

Review by Procurement Wing Preparation of procurement plans by

components heads

Consolidation and development of

Review by Consultant (B&A) annual procurement plan by
Procurement Wing

Approval by PD

NOL form WB

Quarterly Review by
Procurement Wing Implementation of procurement plan

Approval by PD

Figure 2 Process for approval of annual procurement plan

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1.2 Procurement of Works and Services
1.2.1 National Shopping [Post Review]
1.2.1.1 Following steps will be followed in case of procurement through
national shopping:
a. Concerned component / initiating authority will prepare
Purchase Requisition (Annex 10).
b. The component head will seek approval from the competent
authority and forward the PR along with estimated costs and
document showing approval of competent authority, to the
Procurement Wing.
c. Preparation of Invitation for Quotation (IFQ) (Annex 1)
d. Quotations shall be obtained from a minimum of three
suppliers.
e. Bid will be opened by a Bid Evaluation Committee, which
shall have one member (technical) from concerned component.
f. A comparative statement shall be preparedon the basis of these
quotations.
g. The lowest compliant / responsive bid shall be accepted.
h. Purchase Order (Annex 3)shall be issued to the selected bidder
by the Procurement Wing or the RD, as the case may be.
i. Standard documents used in national shopping include:
i. Purchase Requisition (Annex 10)
ii. Invitation for Quotation (IFQ) (Annex 1)
iii. Comparative Statement of Bids/Quotations (Annex 2)
iv. Purchase Order (Annex 3)
1.2.1.2 RDs will prepare monthly reports of procurements and furnish on
regular basis. They shall maintain record of all items procured by
them and shall be responsible for audit.
Steps involved in procurement under National Shopping are
depicted in Figure 3:

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 Review by Preparation of PR
Procurement Wing

Approval by competent
Review by Consultant authority
(B&A)

Submission of PR along
with approval of competent
authority to Procurement
Wing

Preparation of IFQ

Soliciting quotations from at

least three suppliers

Preparation of comparative
Approval by PD
statement

Award of work / Issuance of PO Acceptance of PO by

Vendor

Figure 3: Procurement Process: National Shopping

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 1.2.2 National Competitive Bidding (NCB) [Post Review]
Processes used in NCB include:
1.2.2.1 Concerned component will prepare PR and forward it to
Procurement Wing along with cost estimates. The PR will also
include complete specification, BoQs, required allied services etc.,
cost estimates, methods of OAT for acceptance and
indicateofficer/official responsible for OAT.
1.2.2.2 Procurement Wing will prepare Invitation for Bids (IFB) and publish
the advertisement in the national press indicating30 days deadline
for submission of bids.
1.2.2.3 Advertisement will be posted on websites of PIFRA and PPRA.
1.2.2.4 Bidding documents will be issued to the prospective bidders.
1.2.2.5 Bids shall be opened by the bid evaluation committee on the last date
for their submission as per IFB.
1.2.2.6 Bid evaluation report will be prepared by the Bid Evaluation
Committee. Responsibility of compliance for the goods/services to
meet the required quality shall rest with technical member of the
Committee.
1.2.2.7 Bids shall be valid for 90 days.
1.2.2.8 Bid security provided shall be valid for 120 days.
1.2.2.9 Contract shall be awarded to thelowest compliant / responsive
bidder.
1.2.2.10 Bidders shall be required to submit performance security and sign
the contract within 28 calendar days. Contract shall be signed by
authorized person of the bidder and PD, PIFRA or an officer
authorized by him for the purpose.

Steps involved in procurement under NCB are depicted in Figure: 4.

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Review by Procurement Wing Preparation of PR and BOQ and cost
estimation

Approval by competent authority

Review by Consultant (B&A)

Submission of PR along with approval of

Competent Authority to Procurement
Wing

Preparation of IFB

Advertisement in newspapers

Bids opening

Preparation of bids evaluation report

Approval by PD

Signing of contract Award of contract

Figure 4: Procurement Under NCB

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 1.2.3 International Competitive Bidding (ICB)
Procedure involved in ICB include:
1.2.3.1 Concerned component will prepare PR and forward it to
Procurement Wing along with cost estimates. The PR will also
include complete specification, BoQs, required allied services etc.,
cost estimates, methods of OAT, and indicate the officer/official
responsible for OAT.
1.2.3.2 Procurement Wing will prepare IFB and publish the advertisement in
national/international media indicating 45 days’ deadline for
submission of bids.
1.2.3.3 Procurement Wing shall maintain a Log of Purchase Requisitions
(Annex 14) to monitor and keep a permanent record of all
purchase requisitions received in the Wing.
1.2.3.4 Advertisement will also be posted on websites of PIFRA and PPRA.
1.2.3.5 Bidding documents will be issued to prospective bidders.
1.2.3.6 Bids shall be opened by the Bids Evaluation Committee on the last
date for submission given in the IFB.
1.2.3.7 Bids shall be valid for 90 days.
1.2.3.8 Bid security will be required to be valid for 120 days
1.2.3.9 Bid evaluation report shall be prepared by the bid evaluation
committee.
1.2.3.10 Contract shall be awarded to the lowest compliant / responsive
bidder within the validity period (90 days). Bidders shall be
required to submit performance security and sign the contract
within calendar 28 days.
1.2.3.11 Contract is to be signed by authorized person of the bidder and PD,
PIFRA

Steps involved in procurement under ICB are depicted in Figure: 5.

24
 Review by Preparation of PR and BOQ
Procurement Wing and cost estimation

Approval by competent
Review by Consultant authority
(B&A)

Submission of PR and
approval documents to
Procurement Wing

Preparation of IFB / Bidding

documents
Advertisement in international
NOL by WB
media / newspapers

Bids opening

Preparation of bids
evaluation report

Approval by PD

Signing of contract Award of contract

Figure 5: Procurement through ICB

25
1.3 Procurement of Consultancy Services
As mentioned earlier, “Guidelines for Selection and Employment of Consultants by
World Bank Borrowers”, shall be followed. There are three methods for the
purpose. Procedure in respect of each of the methods is described below:
1.3.1 Qualification Based Selection of Consultants (Consultancy
Firms):
The method of “Selection based on consultant’s qualification OR
Qualification based selection of consultants” is used in case cost of
consultancy does not exceed US$ 100,000. In such a case, audit is carried
out after completion of the assignment. Procedure involved in qualification
based selection of consultants (consultancy firms) are as under:
1.3.1.1 Concerned component will prepare TORs, seek approval of the
PDthrough Procurement Wing indicating estimated costs and the
proposed criteria for selection.
1.3.1.2 Procurement Wing will prepare EOI and publish the advertisement
giving a notice of 15 days to the interested parties for submission
of EOIs.
1.3.1.3 EOIs are received by the Procurement Wing
1.3.1.4 After receipt of EOIs, shortlisting will be done by Selection
Committee, approved by PD. Only one top ranked firm will be
selected.
1.3.1.5 Request for Proposal (RFP)will be issued to the selected firm with
30 days notice for submission of technical and financial proposals.
1.3.1.6 Technical and financial proposalswill be evaluated by the Evaluation
Committee and negotiations will be carried out with the selected
firm, if required.
1.3.1.7 Contract shall be signed after approval of PD.

Steps involved are depicted in Figure: 6.

26
 Signing of contract after
Preparation of TORs cost
approval of PD
estimates, and selection criteria

Award of work
Approval of PD

NOL from WB
Negotiation
Preparation of advertisement

Evaluation of proposals
EOIs received in Procurement
Wing

Technical and financial

proposals received
Evaluation of EOIs

RFP issued to selected firm

Selection of firm

Figure 6: Procedure for qualification based selection of consultant firm

27
1.3.2 Quality and Cost Based Selection of Consultants
(Consultancy Firm)
In case value of consultancy exceeds US$ 100,000, quality and cost based
selection of consultants (consultancy) firm will be used. In such a case, prior
NOL is required from the World Bank. Following steps are involved in this
method:
1.3.2.1 Concerned component will prepare TORs, seek approval of the PD
through Procurement Wing indicating estimated cost.
1.3.2.2 Procurement Wing will preparethe EOI and publish the
advertisement in the press giving 15 days’time to the interested
parties for submission of EOIs.
1.3.2.3 Shortlisting will be done by Selection Committee, approved by PD.
A maximum of six top ranked firmswill be selected.
1.3.2.4 RFP will be issued to selected firms with 30 days notice for
submission of technical and financial proposal. Selection criteria
based on quality and cost will be adequately detailed in RFP.
1.3.2.5 Technical and financial proposal will be evaluated by the Evaluation
Committee. Minimum weightagefor technical proposal in the
selection criteria will be 70%.
1.3.2.6 Approval of PD will be solicited
1.3.2.7 Contract will be signed.

Steps involved are depicted in Figure: 7.

28
 Preparation of TORs cost Signing of contract after
estimates, and selection criteria approval of PD

Approval of PD NOL from WB

NOL is sought from WB

Approval of PD for award of
work

Preparation of advertisement
Evaluation of proposals, and
selection of firm

EOIs received in Procurement

Wing
Technical and financial
proposals received
Evaluation of EOIs

RFP issued to shortlisted firms

Shortlisting of firms (max 6) (max 6)

NOL from WB
Figure 7: Quality and Cost Based Selection of Consultancy Firm

29
 1.3.3 Individual Consultants
Selection of individual consultants willbe based on minimum three CVs.
Advertisement in this case will be optional. Consultants' services shall be
procured in accordance with the terms and conditions of DCA (Section II),
and Para 2.22 of the SAR and World Bank Guidelines. Following procedure
will be followed:
1.3.3.1 Concerned component will prepare TORs and forward the same to
Procurement Wing indicating estimated cost for approval of PD.
1.3.3.2 NOL will be sought from the World Bank.
1.3.3.3 Procurement Wing will prepare advertisement if required or collect
minimum three CVs from the market.
1.3.3.4 Shortlisting will be done by Selection Committee, approved by PD.
1.3.3.5 Interview of the shortlisted applicants will be conducted by the
Selection Committee.
1.3.3.6 Selected individuals will be offered the contract.

Detailed procedure is depicted in Figure: 8.

30
 Preparation of TORs cost
estimates, and selection criteria
Signing of contract after
approval of PD

Approval of PD

Contract is offered

NOL is sought from WB

NOL is sought from WB

Preparation of Collection of
advertisement (optional) three CVs

Evaluation of CVs and shortlisting Approval of PD for award of

contract

Interviews Selection of consultant

Figure 8: Selection of Individual Consultants

31
 Chapter 4

Post Procurement Processes-

Delivery, OAT, Payments& Contract

Administration

32
1. Major Post-Procurement Processes:
1.1 Receipt of goods / services as per details given in PO / Contract by the official. This
activity will be coordinated by Inventory Controller.
1.2 Submissionof Delivery Challan and Operational Acceptance Test (OAT) Reports to
Inventory Controller.In OAT, the receiving authority will verify that received items
are in accordance with the details given in PO and will recommend to Procurement
Wing for making payment to the party.
1.3 Recording of assets by Inventory Controller.
1.4 For goods and services, the vendor will submit the invoice to Procurement Expert
or the concerned component manager. The officer/official responsible will
coordinate with Inventory Controller to collect Delivery Challan and OATs along
with checklist (Pre-audited payment proforma), and will forward the case through
Procurement Wing to Consultant (B&A) for payment.
1.5 For civil works, the contractor will submit invoice to Chief Engineer or the Deputy
Chief Engineer, as the case may be. The CE will coordinate with Inventory
Controller/designated official at RD concerned if anything is needed to be recorded
in inventory and will verifycompletion certificate. The case will be forwarded along
with the relevant checklist through Procurement Wing to the Consultant (B&A) for
pre-audit and payment.
1.6 Consultant (B&A) will forward the case to AO (Pre-audit) who will review the case
and ensure that all the requirements and laid down procedures and codal formalities
have been fully observed.
1.7 In case of any shortcoming(s), AO (Pre-audit) will ask the concerned Wing /
Procurement Wing to satisfy queries / observations.
1.8 The case will then be forwardedby the AO (Pre-audit) with his clear
recommendations as to payment to the Consultant (B&A).
1.9 Consultant (B&A) if agrees to the recommendations of AO (Pre-audit) for release
of payment, will submit the case to DG (Admn) for approval of PD. On return of
the file, B & A Wing shall enter the payment in the relevant register, to be
maintained contract/PO-wise, and update the ledger account already placed in the
relevant contract file.
1.10 After approval of payment, AO (IDA) will prepare the cheques, get it signed from
the authorized signatories by submitting the same on original case file containing
approval of the competent authority and dispatch the cheque to the beneficiary’s
address through courier service on the same day with acknowledgement due. A
copy of the letter forwarding the cheque to the beneficiary shall be endorsed to the
Procurement Wing as well as the concerned component manager/RD’s office.
Similarly a cheque on account of withholding tax shall be issued to the concerned
tax authority on the same day.

33
2. Operational Acceptance Testing (OAT)
2.1 The concerned Component of PIFRA will designate a team of three officers/officials
(including at least one officer from the other Component) for inspecting the items
procured.
2.2 The authorities responsible for OAT will produce three copies of Operational
Acceptance Testing (OAT) Report (Annex 4) and hand over the same to the
Inventory Controller or the designated officer/official of the concerned
component/RD. The originalOperational Acceptance Testing (OAT) Report (Annex
4) shall be forwarded to /retained by Procurement Wing or RD/Component
concerned, as the case may be, for processing the payment. First copy shall be sent
by the Inventory Controller/designated official to the supplier, retaining the second
copy with him.
3. Monitoring Performance/Contract Administration
3.1 The Consultant (Contract Management) shall be responsible for custody, record
keeping of all contracts and POs and contract administration/monitoring of dates of
completion/expiry and matters relating to extension.
3.2 Where an extension in any contract is required, the concerned component shall
initiate the proposal for extension for approval of the competent authority not later
than three months before expiry of its original/extended date of completion.
4. Audit of Procurement
Procurement Wing/concerned Components/RDs shall be responsible for audit of goods,
services and works procured at their respective ends.
5. Warranty
Equipment shall be purchased with standard warranty as offered by the
supplier/manufacturer. Record of all valid warranties shall be maintained centrally by the
Inventory Controller and the Procurement Wing. Profile of any asset transferred to any
RD/Component shall also be forwarded to the respective user of the equipment/item who
shall, in turn, keep the fact in view and claim the warranty if the equipment/items become
faulty/out of order during warranty period.
6. Record of Contracts/P.Os
6.1 Procurement Wing will make necessary arrangements for maintaining scanned
copies of all contracts/POs so far entered into by PIFRA.
6.2 It shall also be ensured that every new contract/POsis scanned immediately after it is
signed and a proper record is maintained.
6.3 All contracts/POs will be entered in a contract register and assigned a unique number
– separately meant for contracts and POs.
6.4 Procurement Wing/RD/Component, as the case may be, shall invariably forward the
original copy of the contract/PO to the Consultant ( B& A) while forwarding first
invoice of the supplier for payment after receipt of the goods and their OAT.

34
 Chapter 5

Inventory Control
Policies & Procedures

35
1. Objectives of Inventory Control Policies and Procedures
Following are the objectives of inventory control policies and procedures:
1.1 To lay down the procedures fortakingAssets on stock and issuance, utilization and
availability for intended use,
1.2 To take preventive steps against misuse of Assets,
1.3 To maintain Assets in orderly and efficient manner;and
1.4 To ensure safety and security of Assets.
2. Applicable Scope
This policy is applicable to all officers/officials, offices who are custodians and users of
PIFRA assets.
3. Responsibilities:
3.1 Responsibilities of Inventory Controller
The Inventory Controller shall be responsible for all PIFRA assets in the matters of:
3.1.1 Safe custody, complete up to date and accurate record of receipt and issuance
of assets,
3.1.2 Maintenance of proper record of assets under warranty given at the time of
delivery,
3.1.3 Movement/transfer of all assets,
3.1.4 Disposal of surplus, obsolete and unserviceable assets,
3.1.5 Arrangement of annual physical stock taking of the assets held in the
Inventory as well as those issued to different wings of PIFRA Head Office,
Regional Directorates and sites of the Project,
3.1.6 Arrangement of periodic Survey Board of the assets to ensure that the best
interest of the state is served in the disposition of the Project assets; and
3.1.7 Codification of every asset to facilitate its identification as and when
required, including physical stock taking.

36
3.2 Responsibilities of Person/Office Using the Assets
3.2.1 Every office, wing, section and/or officer/official of the Project has an equal
responsibility for care, custody, maintenance, record keeping, and control of
all assets held under their control.
3.2.2 Up-to-date departmental records of all such assets shall be maintained by
every office, wing, section and/or officer/official of the Project as prescribed
in this Manual.
3.2.3 A log book shall be maintained in respect of every asset involving regular
maintenance/repair and expenditure incurred thereon. Assets like
Photocopiers, Diesel Generators, Vehicle, Desktops, Laptops, Printers etc.
are included in this category.
3.2.4 Similarly, a profile of each asset, containing complete particulars including
warranty etc. and history of earlier maintenance/repairs along with
expenditures incurred, shall be maintained. The document shall be duly
attached while forwarding the proposalsseeking approval to cases for
repair/maintenance.
3.2.5 No asset shall be moved/transferred from one office, wing, section or
officer/official to another except with prior formal information and
permission of the Inventory Controller.
3.2.6 Every office/user of theasset shall send a report immediately on happening of
one or more of the events mentioned below to the Inventory Controller and
Director (Procurement).
3.2.7 A complete report shall thereafter be forwarded to the above officers, not
later than three (03) days after occurrence of the event along with necessary
papers mentioned against each:
a. Asset Lost or Stolen – along with a copy of the FIR lodged with the
nearest police station,
b. Asset Cannibalized – along with complete details,
c. Asset Destroyed – along with cause of destruction,
d. Asset Relocated to another building/room – with complete details,
e. Asset Found (having previously been reported lost or stolen) – along
with details,
f. Asset Transferred to Procurement Office – along with reasons for
transfer,
g. Asset becoming Surplus,
h. Any other event concerning an asset considered to be worth reporting.

37
 3.2.8 In case an item is no longer required for the purpose for which it was got
issued, the fact shall be intimated immediately to the inventory controller
who will advise his assistant or the designated officer/official of the
concerned RD/Component for a report in the matter. The asset shall
thereafter be transferred to another section or office, site, where required, or
returned to the inventory controller’s office.
3.2.9 Any officer or staff member posted out of the Project shall also return the
items issued to him in the like manner.
4. Inter-office, wing, section Transfer of Assets
4.1 All assets shall be on permanent ledger charge of Inventory Controller.
4.2 All requisitions for assets shall be addressed to the Inventory Controller.
4.3 An Asset Transfer Advice (Annex 13) shall be prepared by the Inventory Controller’s
office for transfer of every asset to a requisitioning office irrespective of the fact
whether the same is issued from his own inventory or is being reallocated from any
other office/wing of the Project. Three copies of the Transfer Advice will be prepared
and distributed as follows:
a. Copy 1: Requisitioning Section/Office – For record.

b. Copy 2: Transferring Section/Office – For record.

c. Copy 3: Inventory Controllers Office – For record and required action

38
 4.4 The Inventory Controller shall make entries in the Asset Movement Register to
record current location of the item transferred.
4.5 After the item has been accepted by the requisitioning office it will be the
responsibility of requisitioning office to take care of asset received and maintain its
record in the Asset Register.
4.6 Any asset requiring any maintenance/repair shall be reported to the Procurement
Wing.
5. Requisition and Procurement of Assets
5.1 The requisitionfor an asset shall be assessed by the officer in charge and forwarded to
RD/Component Manager. The requisition shall then be forwarded,with
recommendations, to Inventory Controller for further action who will ascertain
inventory position).
5.2 If the requisitioned item is available in stock, it will be issued on Asset Issuance Form
(Annex 6) by the Inventory Controller after obtaining necessary approval. If
procurement is needed, then Procurement Wing will be requested to take the
necessary action for procurement. In any case a formal receipt of the item(s) issued
shall be obtained on Delivery Form (Annex 11).
6. Physical Stock Taking of Assets and Excess/Shortage Adjustments
6.1 A physical stock taking of all assets shall be carried out in June every year by
Inventory Controller’s office.
6.2 Inventory Controller shall also carry out quarterly physical verification of all assets of
the Project and forward the lists to the B & A Wing for reconciliation with the
financial record of these assets maintained by that Wing in the form of Assets
Register (Annex 17).
6.3 All wings, sections and/or officers/staff of the Project shall extend full cooperation to
the Inventory Controller in performance of above duties.
6.4 Based on physical counting, a list of excesses and shortages will be prepared by the
Inventory Controller. The Internal Audit Wing shall prepare a report of weaknesses in
the system and make recommendations for improvement.
6.5 In some cases only a book-keeping adjustment may be required as some of the items
might have changed their location and the record in the books may not have been
updated.
6.6 Every other shortage and excess shall be thoroughly investigated by Internal Audit to
determine reasons and propose the course of action.
7. Depreciation.
7.1 B & A Section shall record depreciation for each asset mentioned in the Assets
Register in accordance with the government’s policy.
7.2 The amount of depreciation for every item entered in the Ledger shall be calculated
and recorded therein on a half yearly basis to readily ascertain book value of any asset
at the time of disposal of assets identified for the purpose.
7.3 Items fully depreciated shall remain in the Assets Register until they are actually
disposed offas per laid down procedure under this Manual.
8. Maintenance, Repair and Up-gradation

39
 8.1 Any asset requiring maintenance, repair or up-gradation shall be reported in the format
prescribed (Annex 9) forRepair, Maintenance and/or Up-gradation, to the Procurement
Wing with a copy to Inventory Controller along with asset profile. A detailed
description of the nature of maintenance, repair or up-gradation required in the opinion
of the user/user department shall also be recorded in a covering letter/office note.
8.2 In case of maintenance, repair or up-gradation of IT equipment, an IT person of the
Project (at SAP CC or at the respective RD Office, as the case may be) shall be
involved for need assessment and estimation of cost.
8.3 The Inventory Controller shall coordinatewith the Administration or Procurement
Wing, as the case may be, in whose purview the proposed work falls.
8.4 Cost of maintenance, repair and/or up-gradation shall be borne as under:
8.4.1 By the Project in case of normal wear and tear or up gradation.
8.4.2 By the user in case of proved negligence or mishandling of the asset after a fact
finding inquiry.
8.4.3 The concerned office and Inventory Controller shall update profile of the
relevant asset maintained in their offices. Similarly, cost and depreciation of
the asset shall also be updated by the B & A Wing in the Assets Register if it is
considered that the expenditure incurred on its maintenance, repair and/or up-
gradation has an effect of increasing its useful life.
9. Disposal of Assets
Disposal of an asset shall be proposed/considered, if:
9.1 It has been declared as unserviceable or obsolete,
9.2 It has completedthe useful life and the Assets Register maintained by B & A Wing
shows zero book value,
9.3 Its maintenance/repair cost exceeds 60% of its replacement cost,
9.4 It has become beyond local repairwithin the country.
9.5 It has been damaged or destroyed, after the cause of damage or destruction stands
duly investigated and responsibility, if any, fixed as per Asset Loss/Damage Report
(Annex 7).
9.6 All disposal proposals shall be placed before the following Disposals Committee for
recommendations:
a. Director (Procurement) - Chairman,
b. A BPS-17 Officer of B&A Wing – Member; and
c. Inventory Controller.

40
 9.7 The Inventory Controller shall prepare an Asset Disposal Advice (Annex 8).
Inventory Controller’s office shall complete particulars of the asset while the other
part meant to contain financial information like cost, accumulated depreciation and
written down value shall be completed by B & A Wing.
9.8 Items identified for disposal shall be disposed of once a year. The Advice will be
reviewed by an officer designated by the Project Director.
9.9 After approval of the Advice by the said officer, the Inventory Controller shall
arrange for an auction as per government rules on the subject.
9.10 A Comparative Statement of offers will be prepared by the Inventory Controller’s
office.
9.11 Only the highest offer shall be accepted for the sale of any asset.
9.12 An item remaining unsold may be written off the records on the authority of an
Adjustment Note to be prepared by the Inventory Controller and approved by
competent authority under government rules.
9.13 Prior to removal from the office, the surplus computer equipment shall be sent to an
Information Technology Person where all data will be erased from the hard drive.
9.14 All assets disposed off under this clause shall be charged off the relevant records on
the authority of the approved Asset Disposal Advice (Annex 8).
10.Codification of Assets.
10.1 The Inventory Controller shall assign a unique identification code/barcode to every
asset immediately (within 24 hours), when received for the first time in Head Office
or directly received at RD Office or other offices, as per approved Codification
Scheme contained in Annex 16.
10.2 An Asset Coding Form (Annex 5) containing the following information shall be
filled in and recorded at the time an asset is codified as above:
i. Name & description of the asset,
ii. Make, Model, Type and Manufacturer’s Serial/Tag Number,
iii. Specifications,
iv. Detail of accessories;
v. Detail of Documents i.e. Operational Manual, Use Guide etc.,
vi. Purchase order reference i.e. order number/Contract Agreement,
vii. Date of Purchase, price, warranty period etc.,
viii. Name of Supplier,
ix. Any other relevant information.

41
 10.3 The code shall be marked at a visible place on the asset using an engraver or an
irremovable sticker.
10.4 The code number of the asset shall also be entered in the Operational Acceptance
Testing (OAT) Report (Annex 4). The B & A Wing shall, on receipt of copy of these
documents, make necessary entries including the code number of the asset, in Assets
Register (Annex 17)maintained in that Wing.
10.5 The Inventory Controller’s office shall maintain the Assets Movement Register to
record the quantities of assets received, along with code number of each item and the
movement of such items from one Section/Office to the other.
10.6 The Inventory Controller’s office and B & A Wing shall reconcile the Assets
Movement Register and Assets Register, maintained by them respectively, on
quarterly basis.
11.Sensitive Property.
11.1 Sensitive Property means theft sensitive items that are highly desirable, costly and
portable. Examples of sensitive property include computers, digital and video camera
equipment, televisions, VCRs, cell phones and all similar electronic items, etc.
11.2 It is highly desirable that complete record of these items including make, model,
serial number, value, supplier etc. is duly maintained in the respective offices and/or
wings of the Project.
11.3 A Laptop Issuance Form (Annex 16) shall be completed and signed by the
officer/official of the Project upon receipt of any new laptop or in the event that
possession of the laptop is transferred to him/her from another officer/official of the
project. Prior approval of PD shall be obtained for issuance of a laptop to any
officer/official on the recommendation of the Component Manager/DG concerned.
11.4 An IT person of the Project shall be approached to have all laptop parts and
accessories checked to ensure that the laptop is returned to the Inventory Controller’s
office as a complete unit as issued.
11.5 In the event of reported theft of any such item, an FIR shall be lodged in the nearest
Police Station immediately with complete details and Director (Procurement and
Inventory Controller shall be informed in writing about the incident on the day of
occurrence.
11.6 In case of items in custody of officers/staff of the Project, recoveries of its value shall
be made from their payroll or through any other mode to salvage government interest.
11.7 The cases of Project Management Unit shall be handled by Administration Wing of
PIFRA with the approval of Competent Authority.
12.Fittings and Fixtures of Buildings.
12.1 A proper Building Inventory (Annex 18) shall be prepared in respect of all fittings
and fixtures of a building at the time of taking over from the Civil Work Contractor
after completion.
12.2 The officer of the Project taking over the building and an authorized representative of
the work contractor shall sign the said building inventory in token of agreement of the
both.
12.3 A copy of the Building Inventory prepared as such shall invariably be forwarded to
Inventory Controller as well as to Chief Engineer, PIFRA and B & A Wing.

42
 12.4 Similarly, building inventories of all the existing buildings of the Project shall be got
prepared by head of each office of the Project. Copies of the said building inventories
shall be shared with Inventory Controller, Chief Engineer and B & A Wing.
12.5 Inventory Controller shall then adopt the same procedure, in respect of all fittings and
fixtures, as detailed in this Manual for assets acquired through purchase. Only
difference would be that the fittings and fixtures shall be treated to have been
delivered directly to the relevant building without being routed through inventory.
12.6 The Inventory Controller shall arrange physical marking of the identification
codes/barcodes on the fittings and fixtures of buildings at site.
13.Loss Prevention Measures.
In order to ensure prevention of loss of assets, one or more of the following measures shall
be adopted by the responsible office, wing, section and/or person of the Project:
13.1 Ensure that all assets are clearly tagged with bar codes.
13.2 Using engraver, engrave the words “Government Property, the name of the
department and an identification code number”.
13.3 Office machines may be cabled or bolted and locked to the employees’ desks and
stands to ensure a sufficient amount of protection.
13.4 A security room, closet, or cabinet with locking capabilities may be used to store any
item(s) considered vulnerable to theft.
13.5 No asset shall be allowed to move out of an office unless prior approval of the
competent authority of Administration Wing is duly obtained on a proper Gate Pass
which shall invariably accompany the asset in question.
13.6 For internal control purposes, concerned offices/wings of the Project may assign a
responsible person to ensure safety, upkeep and maintain record of assets and to
perform interim counts physically. The officer/official shall be duly notified by the
respective office and on transfer or change of charge shall duly notify the new
officer/official responsible for the task.
13.7 Periodic review of security needs by respective offices/wings/sections.
14.Reconciliation of Assets with Financial Record and Transfer to Ultimate
Beneficiaries of the Project.
14.1 Before the assets installed/held in various offices of the Federal and Provincial
Governments are formally handed over to these offices, a complete reconciliation of
all assets procured under the Project shall be carried out with the financial/payment
record maintained by the B & A Wing, by a committee comprising the following:
i. An Officer of Procurement Wing – Chairman,
ii. An Officer of B & A Wing – Member; and
iii. Inventory Controller – Secretary.

43
14.2 Discrepancies, if any, shall be thoroughly investigated and made good from the
officers/staff held responsible.
14.3 Final holdings of all the assets, as reconciled shall be entered in appropriate number
of Stock Registers and or Equipment Ledgers for formal handing over to the
concerned offices.
14.4 PIFRA shall formally request each concerned office/department to appoint a focal
person for taking over PIFRA assets. At the time of handing/taking over each and
every item of assets shall be jointly counted by representative of the Procurement
Wing of the Project and the said focal person of the concerned office/department of
the Federal or Provincial Government.
14.5 After agreement of both on the number and description of the assets, authorized
representatives of the Project and the concerned office shall sign each page of the
stock registers/ledgers mentioned at clause 29.3 where the assets have been recorded,
in token of these assets having been taken over/handed over. Four copies (in original)
of the handing over/taking over report shall be prepared and jointly signed by the
officials, with office stamp and date. A copy of each shall be retained by the
Inventory Controller and the respective office. The remaining copies shall serve as
record of Procurement Wing and B & A Wing.
14.6 Any assets procured for an office/department after completion of the above
handing/taking over exercise till closure of PIFRA shall be directly taken on charge in
the relevant stock ledger(s) now held by the office/department concerned.

44
Annexes

45
 Annex 1
Format of Invitation for Quotations (IFQs)

No. /PIFRA/Proc./_________ Dated: __________

1. M/s

2. M/s

3. M/s

4. M/s

5. M/s

Subject: Invitation for Quotation (IFQ) for Supply and Installation of …………………..
Government of Pakistan has received a credit from the International Development Association (IDA) in
various currencies towards the cost of Second Project to Improve Financial Reporting and Auditing
(PIFRA) and intends to apply part of the proceeds of this credit to eligible payments under the contract for
which this invitation for quotations is issued.
2. You are invited to submit your most competitive quotation for the Supply and Installation of the following
equipment.
2.1 Equipment Specifications:

S. No Equipment Specs. Quantity

2.2 Contact Person:

Director (Procurement), PIFRA Directorate Islamabad.
Phone No: 051-9224038. Fax No: 051-9219191
2.3 Delivery and installation of equipment shall be required at following sites.
________________________________________________________________________________
(Islamabad, Lahore, Karachi, Quetta and/or Peshawar, as the case may be)
2.4 Delivery/Installation period shall be 4-6 weeks after issuance of Purchase Order.
3. Bid Price
a) All duties, taxes and other levies payable by the contractor under the contract shall be included in the
total price.
b) The rates quoted by the bidder shall be fixed for the duration of the contract and shall not be subject to
adjustment on any account.
c) The Prices should be quoted in Pakistani Rupees only.
4. Each bidder shall submit only one quotation.

46
5. Evaluation of Quotations
The Purchaser will evaluate and compare the quotations determined to be substantially responsive i.e. which
a) Are properly signed; and valid for minimum 30 days.
b) Conform to the terms and conditions, specifications and warranty period.
c) The bidder has authorization from the manufacturer for offered brand for items under lot 1, for which
equipment should be branded/originally assembled by the Manufacturer.
6. Award of Contract
The Purchaser will award the contract to the bidder whose quotation has been determined to be substantially
responsive and who has offered the lowest evaluated quotation price.
6.1 Notwithstanding the above, the Purchaser reserves the right to accept or reject any quotations and to
cancel the bidding process and reject all quotations at any time prior to the award of contract.
6.2 The bidder whose bid is accepted will be notified of the award of contract by the Purchaser prior to
expiration of the quotation validity period. The terms of the accepted offer shall be incorporated in the
purchase order.
7. Payment @ 70% of cost of contract shall be made upon provision of original delivery challans duly signed
and stamped by the user/ PIFRA Directorate and 30% payment upon issuance of Satisfactory Performance
Certificate duly signed and stamped by the user / PIFRA Directorate.
8. Three years commercial warranty offered by original manufacturer / vendor (free of cost parts & labor)
shall be applicable to the supplied goods, against which Performance security @ 2 percent of the cost of
contract shall be applicable in the form of a bank guarantee.
9. We look forward to receive your sealed quotations within 10 days of this IFQ but not later than 00/00/0000
and thank you for your interest in this project.

Procurement Officer
(Signatures)
Phone: ----------
Fax: ----------

47
 Annex 2
Template of Comparative Statement Bids/Quotations
Comparative Statement Dated:_____________
Procurement of_______________________under NS.______________
S.No. Firm Items / Quantity Total Price Remarks
inclusive of GST
(Rs.)
1 M/s ABC 1st Lowest
2 M/s XYZ 2nd Lowest
3 ………. 3rd Lowest
………..
The committee recommends M/s ABC for award of contract as lowest responsive bidder.

Chairman___________________________
(Signatures)

Member_____________________________
(Signatures)

Member/Secretary____________________
(Signatures)

48
 Annex 3
Purchase Order
No. /PIFRA/Proc/………….. Dated: _______________
M/s ……………….
Address…………….
Ph: ……………
Fax: ………………………
Subject: Purchase Order for Supply of ………………………………..
Please refer to your Quotation No. ………………Dated: 00/00/0000
2. We are pleased to inform that your quotation for supply of the itemslisted in the table below has
been accepted by PIFRA with the following Terms and Conditions:
S. Item Description: Total Amount
No. (Including Taxes)
(Rs.)
1.
2.
3.
3. Place of delivery and contact officials:
………………………. PIFRA Directorate, Islamabad.
4. You are requested to please coordinate with the above official to conduct the Operational
Acceptance Tests.
5. You are required to arrange delivery and installation within 2-3 weeks of the issuance of Purchase
Order.
6. In case of any delay, Late Delivery Charges @ 0.05% of the cost of undelivered portion of supply
will be levied every day beyond the stipulated time of delivery, subject to a maximum of 10% of
the contract price.
7. Any deviation from the specifications given in the quotation shall be deemed as violation of this
document and may result in cancellation of the Purchase Order, even if the product required has
been delivered.
8. The rates accepted are for Delivered Duty Paid (DDP) and are inclusive of taxes and duties
payable by M/s ……………………….. as per laws of Islamic Republic of Pakistan.
9. Income tax will be deducted at source as per rule/orders if applicable.
10. You are directed to provide performance guarantee in shape of Bank Guarantee/Pay Order/ Bank
Draft @ 2% of the contract which will remain valid during warranty period.
11. 100% payment will be made upon provision of Delivery Challans and Operational Acceptance
Tests (OATs) reports dually verified by the PIFRA Directorate.

…………………….
(Signatures)
Procurement Officer
Copy to: ……………………………..

49
 Annex 4
Operational Acceptance Testing (OAT) Report

Supplier: _________________________________________________ R & I Report No:

Date:
Purchase Order No: __________ Dated: ___________________
Status (Complete/Incomplete)____________________________
Letter Of Credit No: __________
Dated: ___________________
(If Applicable):

Serial Quantity Quantity Quantity Quantity

Asset Code Item Description Unit Rate Value
No Ordered Received Rejected Accepted

Reasons for Rejection (if any):

Received By Inspected By Approved By Entered By

1
2
Annex 5
Asset Coding Form

Reference No: Registered By: _____________________Date: ________

Item
Description
Assets Code. Model/Type
Receiver
Brand:
Reference
Serial No.

Functions/
Specifications
Description

Accessories

Documentation

Up gradation/
Maintenance
Record
Purchase Order Number Purchased Value Warranty Period

Purchasing Name of Company

Reference
Information Supplier: Vendor Address
Contact
Person/Number
Other
Reference
Information
(if any)
Sign of
registration
authority

1
 Annex 6
Asset Issuance Form
Asset Code No:_____________ Date: ___________________
Receiving Person Department Designation/Location

Item Description

Quantity Issued Assets Code.

Serial No.

Model/Specification

Accessories

Documentation

Received By:

Issued By:

2
 Annex 7
Assets Loss / Damage Report
Reported By: ___________ Date: ______ / _____ / _____

Item Description

Assets Code. Serial No.

User Name Department/Location

Cost (To Be Filled in by Inventory Controller)

User Justification
(Reasons For
Damage/Loss In
Detail)

Description of
Damage/Loss

User Signature
Signatures of
Component
Manager/Head of
Wing/Office.
Submittedby
Inventory
Controller(with a
report on investigation
as to person
responsible for
loss/damage)
Decision of DG
(Procurement)/PD

3
 Annex 8
Assets Disposal Advice

Item Description

Model/Type
Value After
Purchased Value
Depreciation
Assets Code Date Purchased

Present User (Name &

Department
Designation)

Reason For Disposal

Recommended By
Department Head

Comments of
Inventory Controller

Recommendations of
Director(Procurement)

Approved of P.D.

4
 Annex 9
Assets Repair, Maintenance and/or Up-gradation Requisition

Item Description

Name& Designation
of Official Initiating Model/Type/Serial
the Requisition

Purchased Value Value After Depreciation

Assets Code. Date Purchased

Present User (Name

Department
& Designation)

Purpose  Up gradation  Maintenance/Repair

Reasons/Problem
Diagnosed

Detailed
Requirements

Estimated Cost Applicant Signature:

Recommended By
Department Head

Comments of
Inventory
Controller

Recommended By
Dir. Proc.

Approved By P.D.

5
 Annex 10
Purchase Requisition
Reference No:ABC/00Date: _________

Applicant Department/Location Designation

Item Description (Name

of Item Required)

Model/Type

Quantity
Estimated Cost
Required

Purpose/PC I Reference

Available Budget
(Budget Allocation to be
filled by B&A)

Specifications/Technical
Requirements In detail
(Shall be written in Detail)

Applicant Signature

Comments of the Inventory Controller Recommendations of Director (Procurement)

Approved By P.D. (Ref. to File No. and Date)

6
 Annex 11
Delivery Form
Asset No: __________ Date: _______________

Receiver Department Designation/Location

Item
Description(Complete)

Quantity Issued Assets Code

Serial No.

Model/Specification

Accessories

Documentation

Received By
(Signature and Stamp)

Issued By:

7
 Annex 12
Log of Purchase Orders
Purchase Delivery Date Status (Completed/
Date Supplier Brief Description
Order No As per PO Partial/Terminated)

8
 Annex 13
Asset Transfer Advice
No:
Transfer From (Office /Location): Date:
Location:

Transfer To (Office/ Location):

Authority:
Remarks/
Item
Item Code Item Description Unit Quantity (Cost For Inter
Identification
Region Transfer)

Transfer
Transfer Out in
Prepared By Received By
Approved By Approved
By

9
 Annex 14
Log of Purchase Requisitions
Action Remarks
Requisition
Date Purchase Available in Not Available (Complete Date
No.
Order No. Stock in Stock etc.)

10
 Annex 15
Laptop Issuance Form
Name of Employee: ____________________________________________________________

Date of issuance: ______________________________________________________________

Location: ________________________________________________
1. I have received the following _________(mention make) Laptop Computer, Model_______
bearing Asset Code # _________, Manufacturer Serial #______________ along with the
following accessories:

ag

2. I shall be responsible for replacing any lost items at the time laptop is returned.
3. I understand that the laptop computer is being issued as a tool to facilitate my official work.
4. I understand that I am responsible for the laptop computer issued to me and that I will care
for the equipment in such a manner as to prevent loss or damage.
5. I further understand that:
 The laptop is a work tool and should be brought to work each day.
 The laptop should be transported in its case and stored carefully so it is not susceptible
to damage.
 I may not make any permanent personally identifying marks on the laptop computer
including adhesive labels/stickers etc.
 The laptop should never be left unattended after office hours, weekends, holidays, etc.
 The laptop should not be left unattended in any public area.
 Acceptable storage of laptop during office hours includes locked desks, cabinets or other
secured spaces the laptop is not visible when not in the user’s possession.
 The laptop should not be left inside a vehicle where temperature extremes can
permanently damage the unit and/or its components or could be visible resulting into its
theft.
 In the case of any damages or abuse of the laptop, or because of my failure to follow
company technology acceptable use policies, including this agreement, I understand I
will be held responsible for payment of repairs or replacement.
 The company reserves the right to withhold the above payment from my salary if I fail
to make appropriate payment.
 In the event of damage, loss or theft of the laptop, I am responsible to obtain an incident
specific police report immediately.

11
  In the event of damage, loss or theft of the laptop, I will immediately notify the
Inventory Controller or his/her designated representative and the Information
Technology Department for repair or replacement matters.
 The laptop computer and any other accessories/components will be returned to the
Inventory Controller, and none other, immediately upon termination of my employment,
posting out of the Project or at any other time as specifically directed by the competent
authority.
 Any data corruption or configuration errors caused by installation of unauthorized or
illegal software may result in a loss of all data on the laptop and /or system due to the
need for a complete reload. No such data which is pornographic or communal in nature
may be stored on the laptop. Unauthorized or illegal software may not be installed on
the laptop. Failure to follow this may result in penalty to employee and immediate
seizure of laptop.
 I am responsible for backing-up all data on the laptop. The company is not liable for lost
data.
 Use of this laptop is governed by the rules and conditions of PIFRA.
6. I agree to the above terms and conditions as such, agree to fully cooperate with property
loss reporting requirements and with property loss incident investigations.
7. My signature below indicates that I have thoroughly read and understood the above terms
and conditions.

Employee Signature: __________________________________

Date:_____________________

Signature of Official Issuing the Laptop: ______________________________

Stamp:______________________________

Date: _____________________

12
 Annex 16
Codification Scheme
MAIN SUB
ASSET TYPE DESCRIPTION
CATEGORY CATEGORY
CIVIL WORK (Buildings) C
CIVIL WORK 100 100
CIVIL WORK 200 210
FURNITURE AND FIXTURE F
TABLE 100 110
CHAIR 200 210
RACKS , CABNETS 300 310
CUPBOARDS 400 410
HANGER/CARPETS 500 510
EQUIPMENT E
PHOTOCOPIER 100 110
MULTIMEDIA PROJECTOR 200 210
FAX MACHINE 300 310
KITCHEN EQUIPMENT 400 410
TYPE WRITER 500 510
TV/VCR 600 610
MISC 700 710
AC 800 824
VECUM CLEANER 900 910
HEATER 900 923
DIESAL GENERATOR 900 970
COMPUTERS AND ACCESSORIES H
COMPUTERS 100 140
SERVER COMPUTER 100 150
LAP TOP 200 230
PRINTER 300 310
FAX MODEM 400 410
SCANNER 500 510
SERVER UPS 600 610
COMPUTER UPS 600 620
DATA SWITCH 700 710
VEHICLES V
VEHICLES,CAR,JEEPS 100 310
MOTOR CYCLE 400 410

13
 Annex 17
Assets Register
Name of Asset:________________________________________ Asset Code:______________________

Detailed Description:__________________________________________

_________________________________________________________________

Depreciation Accumulated
Location Written Date Of Revalued Depreciation Written
Acquisition Date Of Original Charge for the Accumulated Depreciation
(and/or Down/Book Revaluation Amount (Revalued Down
Reference Acquisition Cost Period Depreciation (Revalued
Custodian) Value (If Any) (If Any) Amount) Value
Rate Amount Amount)

14
 Project to Improve Financial Reporting and Auditing Islamabad

Annex 18
Building Inventory
Name/Particulars of Building:____________________________________________________________________________

Date of Completion._____________ Group _____________________

PO/
S. Line Vendor/ Asset Date Unit Disposal
Contract Item Description Quantity Location Room Category Serial #
No. No. Contractor Code Received Cost Date
Number
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17