CENTRAL PROCUREMENT DEPARTMENT

SOP
1. ORGANIZATION
2. MISSION
3. TASKS
4. DEFINITIONS
5. TYPES OF STORES
6. DEMANDS
7. METHOD OF PROCUREMENT
8. FINANCIAL LIMITS
9. PROCESSING & PAYMENT OF BILLS
10. ENLISTMENT
11. HIGH VALUE CONTRACTS
12. PREQUALIFICATION, QUALIFICATION, DISQUALIFICATION &
BLACKLISTING OF CONTRACTORS
13. DISPOSAL
 DHA ISLAMABAD
CENTRAL PROCUREMENT DEPARTMENT
ORGANIZATION
ED (Adm & Pers)

Dir Adm

GM Procurement

Naib Qasid -1

Procurement Officer Superintendent -1

Office Assistant -1
 CENTRAL PROCUREMENT DEPARTMENT
STANDING OPERATING PROCEDURE
MISSION & TASKS
ã Mission. CPD will arrange procurement of stores/materials and disposal of
all unserviceable stores including vehicles and machinery etc.
ã Tasks
a. To ensure that all procurement demands from all Branches/Dtes are
finalized and procured promptly in accordance with the guidelines
setout in this SOP.

b. To ensure maximum economy in procurement of stores/materials by

bulking demands of common user items of all Branches/Dtes and
arranging their central procurement.
c. To ensure effective market survey to gain upto date information about
latest prices, market trends and to locate appropriate manufacturers /
dealers/sources of supply.
d. To arrange disposal of all surplus/obsolete/unserviceable stores
when directed by Administrator DHAI.
e. To register vendors of various types and categories and maintain their
record to facilitate prompt as well as economical procurements.
 DEFINITIONS
a. ³Procurement´ means the acquisition by any means of goods, construction or
services.
b. ³Procuring entity´ means any governmental department, agency or any other
unit that engages in procurement.
c. ³Goods´ means objects of every kind and description including raw materials,
products and equipment and objects in solid, liquid and gaseous forms and
electricity, as well as services incidental to the supply of the goods if the value
of those incidental services does not exceed that of the goods themselves.
d. ³Construction´ Means all 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 provided pursuant to the procurement
contract, if the value of those services does not exceed that of the construction
itself.
e. ³Services´ means any object of procurement other than goods or

construction.

f. ³Supplier or Contractor´ means, according to the contract, any potential

party or the party to a procurement contract with the procuring entity.

g. ³Procurement Contract´ means a contract between the procuring entity and

a supplier or contractor resulting from procurement proceedings.

h. ³Tender Security´ means a security provided to the procuring entity to

secure the fulfillment of any obligation by the supplier or contractor

participating in the tender process, and a ³Tender Security´ includes such

arrangements as bank guarantees, surety bonds, letters of credit and pay

orders etc.
 TYPES OF STORES
CENTRALLY PROCURED STORES
?. All IT related equipment including networking and software.

2. All telecommunication equipment/stores.

3. All items of stationery including computers items.

4. All printing materials.

5. All kinds of furniture.

6. All electronic stores.

7. All machinery and Engineers stores.

8. All stores required by TP & BC Dte.

9. All Vehicles/Transport.

? . Stores / plants for tree plantation/Nursery.

 LOCAL PURCHASE STORES
These include urgently required stores where either the demand is
unpredictable or the stores are of expendable nature. The items which the
concerned Dtes will continue to procure independent of CPD¶s involvement are
as under:-
(?
Expendable stores for tea bar / cafeteria and other miscellaneous stores
which cannot be procured in bulk periodically.
(2
Spares required for transport and generators.
(3
Items required urgently for repair of any electronics, computers, and
office buildings etc.
(4
Petrol, oil, lubricants and CNG etc for transport / generators.
(5
epair of any equipment / transport / building (not exceeding
s.? , .
etc.
(6
The items of centrally procured stores when required urgently may
be purchased by Dte / Branches after obtaining approval for local
purchase from Director Adm. However, immediately after each of such
procurement the case will be sent to CPD for scrutiny before the final
payment is released by Fin Dte.
 DEMANDS-CATEGORIES
ã Regular Demands. These are demands of items, requirement for which can
be calculated in advance based on the past experience of their consumption. The
supply of these items can be conveniently scheduled and where possible the
stores can be bulked together to achieve maximum economy. These demands
must be forwarded by all concerned to CPD as per following schedule:-
(?
Six Monthly Demands. The demand of items like office stationery /
stores which are required on six monthly basis must be forwarded to
CPD as under:-
(a
For the period Jan -June - By ?st week of Nov of the preceding year
(b
For the period July ± Dec - By ?st week of May
(2
Quarterly Demands. The demand for items which are required on
quarterly basis may be forwarded to CPD at least 6 weeks before
commencement of every quarter of the calendar year i.e. by end of
2nd week of Nov, Feb, May and Aug.
ã Demands on As Required Basis. These demands pertain to items
required by the Directorates / Branches on as required basis. eplacement
of stores on condemnation will also fall in this category.
ã Special Demands. These include Transport, Machinery and other
expensive equipment and stores the demands for which may be forwarded
to CPD at any time of the year alongwith certificate of availability of funds.
ã Emergent Demands. These are the unforeseen demands of urgently
required stores. Such demands will be met under arrangements of the
Directorate concerned in coordination with CPD. The final bills of all such
procurement will be routed through CPD for final payment by Finance Dte.
However, such procurement will only be undertaken when sufficient
justification exists for the same. The urgent requirement of hoardings /
billboards etc by Marketing Dte will also fall under this category and will be
processed accordingly.
 METHOD OF PROCUREMENT
ã Method of Procurement.
(?
Procurement will be made through open competition by obtaining quotations or by
inviting tenders.
(2
In certain cases when the stores are urgently required or when the requirement is of
special nature, tenders will be issued to only the qualified suppliers of proven
capabilities.
(3
For procurement of proprietary items, tenders will be called from the concerned
suppliers.
(4
A proper contract will be singed in case the procurement involved is of important
nature/high value.
(5
If required the terms and conditions of the contract will be got scrutinized and vetted
from the concerned department/Dte and if necessary from Finance/Legal Dte.
(6
. Keeping the above points in view, the method explained in next few slides will be
adopted for procurement of various types of stores by CPD.
 METHOD OF PROCUREMENT-DETAILS
a. On receipt of confirmed demands Central Procurement Department will
issue Invitation of Tenders (ITS
or a request for quotations to the suppliers
on a notice of about 2 (Two
weeks or more.
b. Tendering authority / GM Procurement, where necessary, may at its
discretion ask the bidders for submission of earnest money upto 5% of the
value of the offered goods / services etc. Such earnest money will be
refundable to the unsuccessful bidders.
c. The purchase committee for normal procurements will be as under:-
(?
President: GM Procurement
(2
Members: (a
An Officer from Concerned Dte
(b
An Officer from Fin Dte or Adm Dte
d. Tenders will be opened by GM Procurement in the presence of one officer
each from concerned Dte and Fin / Adm Dte on a fixed date and time. All
tenders will be serially numbered and singed. Bidders may be present at the
opening of tenders if they choose to do so.
e. After opening the tenders and preparation of comparative statement,
completion of negotiations, an evaluation of the tenders received will be made
and submitted with necessary details for approval of competent authority /
Director concerned / ED Tech & CE for issue of the purchase order.
f. Where necessary, the samples will be got approved from the concerned
Directorate/Branch.
g. Negotiations will be carried out to get maximum rebate and to improve upon
the terms and conditions of the contract.
h. The procurement will normally be from the lowest acceptable bidder for any
supply of stores/goods/equipment of laid down specifications. However, where
genuine reasons exist and which should be recorded in writing, the
procurement from a higher bidder may be resorted to.
j. Purchase orders will be issued to the suppliers with lowest rates/whose
sample has been approved by the users Department for supply of stores as
per required delivery schedule. In all cases Four copies of the purchase order
will be prepared and distributed as under:-
(?
Office copy
(2
Supplier¶s copy
(3
Directorate copy ± Two copies
k. For a formal contract, three copies of the contract will be sent to the
supplier for signature. In case the supplies are spread over a period, the
terms and conditions will be clearly spelled out. A copy of the contract
duly signed by the supplier will be sent to the Directorate/Branch
concerned for record and for monitoring progress of supplies. Before
signing of the contract, the same will be got scrutinized and vetted from
the concerned Directorate/Branch.
 FINANCIAL LIMITS
a. For all procurements by CPD financial limits as described in DHAI Accounts
Policy 2 8 will be followed.

b. Financial limits for purchases from open market, procurement by obtaining

quotations and contract awarding / procurement through tendering will be as
under:-

(?
Purchase from open market or on

single quotation - Upto s. 5 , .

(2
Purchases by obtaining quotations - Upto s. 5. Million

(Minimum 3 quotations

(3
Contracts / Purchases through tendering - Above s 5. Million

 PROCESSING & PAYMENT OF
BILLS
a. The Concerned Directorate/Branch will forward the Budget equisition
alongwith bills of the supplies duly verified / stamped and signed
alongwith a copy of CV or Goods eceiving note and inspection eport
(Para 4e of Accounts Policy
of the stores received to CPD within 2
working days of the receipt of stores.
b. CPD after scrutiny will return the same to the Dte concerned for further
processing and onward submission to Fin Dte.
c. Finance Dte will release the payment cheque to the supplier within 3
working days of receipt of bills from the Dte concerned.
d. It will be joint responsibility of the concerned Dte, CPD and Finance Dte
to ensure that the payment cheque is issued to the concerned suppliers
within maximum of ?2 working days of receipt of stores.
 ENLISTMENT OF FIRMS
All prospective suppliers will be encouraged to get themselves enlisted with
CPD. GST registered firms will be preferred for enlistment as suppliers.
 HIGH VALUE PROJECT±CONTRACTS

a. Whereas all high value contracts by Proj Dte, Land Dte, IT&T Dte and
Chief Engineers Branch will be processed and finalised by respective
Dtes/Branches, the GM Procurement will be co-opted as member of the
board of officers processing such contracts.

b. The provisions of Public Procurement ules 2 4 rules 2 to 4? will be

observed for all high value projects / contracts.
 CONTRACT AWARDING
COMMITTEES

a. PRESIDENT: ED TECH & CHIEF ENGINEER /

DIRECTOR CONCERNED

b. MEMBERS: (1) DIR PROJECT

(2) GM PROCUREMENT
 ADVERTISEMENTS FOR HIGH
VALUE CONTRACTS
All High Value Contracts shall be advertised in atleast two national dailies
having wide circulation. However, such an advertisement may be waived in
the business interest of DHAI after a written approval from competent
authority in each case. The reasons for such a waiver will be recorded in
writing. The financial limits to exercise powers to waive advertisement of
high value projects / contracts will be as under:-

a. Value up to ? Million ED Tech & Chief Engineer / Dir

Adm / Other Directors
b. Value above ? Million - upto 5 Administrator
Million
c. Value above 5 Million up to ? Vice President
Million
d. Value above ? Million President
 PREQUALIFICATION OF SUPPLIERS
AND CONTRACTORS
a. The CPD, Proj Dte, Land Dte, IT & T Dte and Chief Engineers Branch Prior
to the floating of tenders, invitation to proposals or offers in Procurement
proceedings may engage in prequalification of bidders in case of services,
civil works turnkey projects and in case of procurement of expensive and
technically complex equipment to ensure that only technically and financially
sound parties are invited to submit bids.
b. All concerned while engaged in Prequalification may take into consideration
the following factors:-
(?
elevant experience and past performance.
(2
Capabilities with respect to personnel, equipment and plant.
(3
Financial position.
(4
Appropriate management capability.
(5
Any other relevant factor not inconsistent with common fair practices
and the law of the land.
 PREQUALIFICATION PROCESS
This process will be undertaken in accordance with ule ?6 of Public Procurement
ules 2 4, reproduced as under:-

(?
The procuring agency engaging in pre-qualification shall announce, in the

pre-qualification documents, all information required for pre-qualification
including instructions for preparation and submission of the pre-qualification
documents, evaluation criteria, list of documentary evidence required by
suppliers or contractors to demonstrate their respective qualifications and any
other information that the procuring agency deems necessary for
prequalification.

(2
The procuring agency shall provide a set of pre-qualification documents to

any supplier or contractor, on request and subject to payment of price, if any
explanation for the purposes of this sub-rule price means the cost of printing
and providing the documents only.
(3
The procuring agency shall promptly notify each supplier or contractor
submitting an application to pre-qualify whether or not it has been pre-
qualified and shall make available to any person directly involved in the
pre-qualification process, upon request, the names of all suppliers or
contractors who have been pre-qualified. Only suppliers or contractors
who have been pre-qualified shall be entitled to participate further in the
procurement proceedings.

(4
The procuring agency shall communicate to those suppliers or

contractors who have not been pre-qualified the reasons for not pre-
qualifying them.
 QUALIFICATION, DISQUALIFICATION
AND BLACKLISTING
The Provisions of Public Procurement ules 2 4, ule ?7, ?8 & ?9 will be
observed.
PUBLIC PROCUREMENT RULES 17-19
ã Qualification of suppliers and contractors.
A procuring agency, at any stage of the procurement proceedings, having
credible reasons for or prima facie evidence of any defect in supplier¶s or
contractor¶s capacities, may require the suppliers or contractors to provide
information concerning their professional, technical, financial, legal or
managerial competence whether already pre-qualified or not: Provided that
such qualification shall only be laid down after recording reasons therefore in
writing. They shall form part of the records of that procurement proceeding.
ã Disqualification of suppliers and contractors.
The procuring agency shall disqualify a supplier or contractor if it finds, at any
time, that the information submitted by him concerning his qualification as
supplier or contractor was false and materially inaccurate or incomplete.
ã Blacklisting of suppliers and contractors.
The procuring agencies shall specify a mechanism and manner to permanently
or temporarily bar, from participating in their respective procurement
proceedings, suppliers and contractors who either consistently fail to provide
satisfactory performances or are found to be indulging in corrupt or fraudulent
practices. Such barring action shall be duly publicized and communicated to
the Authority: Provided that any supplier or contractor who is to be blacklisted
shall be accorded adequate opportunity of being heard.
 DISPOSAL
Disposal of obsolete / condemned / spare stores / Vehs / machinery /
equipment etc will be carried out by CPD on direction from Administrator DHAI.
 DISPOSAL - GENERAL RULES
The disposal will be arranged through open/close auction keeping the best
monetary advantage to DHAI in view. Following general rules will apply:-

a. Declaring an item as surplus/obsolete/unserviceable/scrap will be

responsibility of concerned Dte / Branch.

b. Once an item is declared unserviceable/surplus etc, the Dte/Branch

concerned will obtain approval for its disposal from ED Adm &
Pers/Administrator. The approval proceedings must contain a decision on
the reserve price based on market rates of the items being approved for
disposal.

c. Disposal of vehicles will be through closed bids, whereas other

stores/materials may be disposed off through open auction or closed bids
depending on the size and value of the stores involved.
d. Following information will be provided to GM Procurement/CPD for disposal of
vehicles:
(?
Description/Make & Type/Model and country of manufacture of each Veh
(2
Date of purchase
(3
Cost price
(4
Mileage run
(5
Book value
(6
eserve price

e. Following information will be provided to GM Procurement / CPD for disposal

of stores other then vehicles:
(?
General description
(2
Unit and quantity
(3
Weight in case of scrap
(4
Date of purchase
(5
Cost price
(6
Book value
(7
eserve price based on current market rate
(8
Any other relevant information
f. On receipt of above information CPD will advertise, if necessary depending on
value of stores, about the disposal of vehicles/stores in one or two National
Dailies of wide circulation through PO giving following details:-
(?
Details of vehicles/stores giving their location and period during
which those will be available for inspection by the prospective bidders.
(2
Date and time at which the closed bids are required to reach, date and
time at which the bids are to be opened and venue of opening of
bids must be clearly mentioned.
(3
Date, time and place in case of open auction.
(4
Amount required as earnest money i.e. ? % of the offer to accompany
all bids in shape of a Bank Draft / Pay Order.
(5
In case of open auction 25% of the total bid will be deposited as
earnest money by the successful bidder.
(6
Date and Time by which the final payment must be made after opening
of bids and determination of highest bidder. Earnest money will be
forfeited in case the bidder fails to make the payment in time.
(7
A categorical statement that DHAI has the authority to reject any or all
the bids and accept any bid without assigning any reason.
g. The Board of Officers detailed to supervise open auction will have the
authority to dispose off stores at price ? % lower than the reserve price
fixed by the authority concerned. However, acceptance of bids by the
board in all cases will be provisional and a final approval of ED Adm &
Pers / Administrator / Vice President DHAI will be required.

h. Arrangements will be made by Finance Dte to collect 25% of the total

offer in cash from the successful bidder on conclusion of the open
auction. A proper cash receipt duly stamped will be handed over to the
bidder.
 DISPOSAL - PROCEDURE
Following procedure will be adopted for the disposal of vehicles as well as other
stores:-
a. Close bids will be opened in the presence of the board of officers appointed by
the Administrator DHAI on the date and time as per advertisement in the
news papers. The bidders may attend the opening of bids. The composition of
the board of officers will be as under:-
(?
GM Procurement - President
(2
Procurement Officer / An Officer From Adm Dte - Member
(3
An Officer from Fin Dte - Member
b. Open auction will be supervised by the board of officers to be detailed by
Administrator DHAI on the final date and time as per advertisement.
The composition of the board will be similar as at sub para 2 a above.
c. Bids received without Bank Draft or Pay Order of ? % earnest money will be
rejected and endorsed as such on the bid by the President of the Board of
officers.
d. The amount of offer given in the bid will be announced for the benefit of all
concerned.
e. Bids and comparative statement will be signed by all members of the Board.
f. On completion of the proceedings the recommendations of the Board will be submitted
to Administrator DHAI for final approval.
g. After getting approval from the Administrator a letter will be issued to the bidder by GM
Procurement informing him of the acceptance of his bid and directing him to deposit the
balance amount with Fin Dte DHAI by a specified date. A copy each of this letter will be
provided to Fin Dte and Adm / concerned Dte.
h. The auctioned stores / vehicles etc will be collected by the successful bidders after
deposit of the amount on the authority of the letter issued by Director Finance duly
counter signed by Secretary DHAI.
j. After the vehicles / materials are sold / handed over to the bidder a sale note will be
prepared by the concerned Dte / Adm Dte in triplicate and a copy each will be sent to
Finance Dte and CPD for record.
k. In case disposal involves removal of debris or clearance of area etc, 25% additional
amount as ³eturnable Security´ will have to be deposited by the bidder alongwith the
final payment. This security may be forfeited in favour of DHAI if the tenderer fails to
remove the stores / debris /clear the area within given time.