Procurement in PSML: Adeel Akbar Saim Bin Rashid Syed Babar Ali Zain Siddiqui

Procurement In PSML
Adeel Akbar
Saim Bin Rashid
Syed Babar Ali
Zain Siddiqui
Table of Content
Introduction
Procurement Goal
Procurement Planning
Procurement Methods
Procurement Advertisement
Qualification and Disqualification
Tender processing
Introduction
Pakistan Steel Mills signed a Memorandum of

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

evaluation procedures can only be prevented by a transparent procurement process and with
the participation of Civil Society.
PSML firmly believes that Transparency through internal and external scrutiny is an essential
element of accountability and should be an inherent characteristic of all processes and
procedures, plans, actions or decisions relating to Procurement.
The Manual has been compiled to achieve following aims
All Procurements shall be allotted to the eligible firms, with the best quality of
works/Plant & Equipment/services / Information Systems, but at the same time
consideration must be given to obtain the lowest price for the
stipulated/acceptable quality.
Timely and Transparent Contract Implementation is a key to the success of

Procurement and will only be achieved by making available on PSML website
all Tenders Notices, , Evaluation Reports, Award Decisions and Progress reports
for general public information.
Procurement Goal
To ensure that the Products/goods, Services, Works, Plant

& Equipment and Information Systems needed to carry out
the projects are procured with due attention to economy;
To ensure that Projects are executed within shortest period
of time;
To ensure that the funds are used to buy only those
Products/goods, Services, Works, Plant & Equipment and
Information Systems which are needed to carry out the
project;
To give all qualified bidders an equal opportunity to
compete for the contracts;
To ensure that the procurement process is transparent, fair
and discretion free.
Procurement Goal
Main Considerations
Procurement Goal
Economy
Efficiency
Equal
Opportuni
ty
Transparency
Procurement Planning
Need Analysis
Source of fund
Specification
Government policy
Uncertainty Management
Procurement Methods
Open competitive bidding

Submission of bid
Reservations and preference
Bid security
Bid validity
Extension of time for submission of
bids
Procurement Method
Petty purchases
Request for quotations
Limit of forty thousand rupees;
has standard specifications;
Minimum of three quotations
offering the lowest price
Direct contracting
The acquisition of spare parts or supplementary services

Only one manufacturer or supplier
Change of supplier would disproportionate technical difficulties
Below fifteen per cent of the original procurement
In case of an emergency.
Negotiated tendering
Supporting a specific piece of research or an experiment
For technical or artistic reasons
For reasons of extreme urgency brought about by events unforeseeable
Procurement Advertisement
Methods of advertisement
on the Authoritys website and in print media (forty thousand
rupees and up to one million)

Over one million rupees should be advertised on at least two
national dailies
Advertise until the closing date for the submission of bids.
Response time
Less than fifteen working days for national competitive bidding
thirty working days for international competitive bidding
no time limit shall be applicable in case of emergency
The response time shall be calculated from the day of its first
publication in the newspapers
Exceptions
Related to national security
Intellectual property rights
Qualification and Disqualification
(a) relevant experience and past

performance;
(b) capabilities with respect to
personnel, equipment, and plant;
(c) financial position;
(d) appropriate managerial capability;
and
(e) any other factor that a procuring
agency may deem relevant, not
inconsistent with these rules.
Tender processing
Organize Project Management / Implementation Teams
Designate staff and facilities and decision to appoint consultants.
Establish Independent Evaluation Committees and Project Award Committees.
0 12 weeks
Prepare Prequalification Documents (In case the Pre-qualification is being undertaken)

Review procurement strategy and confirm packaging
Establish explicit, transparent and fair criteria for the evaluation of firms applications
Confirm adequacy of draft technical specifications
Prepare the Instructions to Applicants including the procedural and substantive qualifications
aspects
1-3 weeks
Revise and Clear Prequalification Document (if necessary)
Revise documents
Obtain Approval
1 week
Tender processing
Tender processing
Draft Bidding Documents
Obtain Approval of Bid Documents

( 1 week )
Technical specifications
schedule of requirements
special conditions of contract & sample
forms
instructions to bidders and bid data
sheet, including supplier qualifications
and bid evaluation method
invitation to bid & procurement notice
assemble documents & obtain agency
approval
( 2-8 Weeks)
Evaluate and Select Pre-qualified Firms
Confidentially evaluate applicants in

terms of their: experience and financial
and technical resources
Select qualified applicants
Prepare full prequalification report and
submit to approving Authority
1- 2 weeks
Tender processing
Obtain approval
1 week
Distribute List of Pre-qualified Firms to All Applicants
Issue Bidding Documents

Distribute invitation to bid
4 - 8weeks
Tender processing
Opening of Bids
Open Bids in presence of Bidders.
Announce the Bidders name, Bid Security, Bid Price, and any
discount bidders have offered.
Get the signatures of all Bidders and Bid Opening Committee
Members.
After Bidders leaves the meeting, Bid Committee members shall
sign all the Bids, including the prices, rates offers, and initial all
pages, and initial all the corrections made by the bidders in the
Bid Documents.
Evaluate and Select Lowest Responsive Evaluated
Bid
*15 Days
Note: * Evaluation period may be amended

depending on the complicity of the Tender, but
prior to issue of tenders.
Tender processing
Evaluation Report Declaration on PSML
Website for inviting Objections
10 Days
.
Re Examine Evaluation Report and

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

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Procurement In PSML

Pakistan Steel Mills signed a Memorandum of

It is an established fact that the misuse of discretionary authority and discriminatory

The Manual has been compiled to achieve following aims

Timely and Transparent Contract Implementation is a key to the success of

To ensure that the Products/goods, Services, Works, Plant

Open competitive bidding

The acquisition of spare parts or supplementary services

rupees and up to one million)

publication in the newspapers

Qualification and Disqualification

(a) relevant experience and past

Prepare Prequalification Documents (In case the Pre-qualification is being undertaken)

Obtain Approval of Bid Documents

Evaluate and Select Pre-qualified Firms

Confidentially evaluate applicants in

Distribute List of Pre-qualified Firms to All Applicants

Issue Bidding Documents

Note: * Evaluation period may be amended

Re Examine Evaluation Report and

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