Govt set to alter bidding rules

The government is set to introduce a new method for international open tenders, making it mandatory for bidders to submit both technical and financial offers in one go.

The development comes after the cabinet committee on economic affairs on Tuesday approved the proposed amendments to the public procurement law and rules. The new system is known as the 'single-stage, two envelopes' method.

At present, for international bidding, the technical offer is taken first and then the financial offer. The World Bank purchase policy does not allow this method but the Asian Development Bank gives this scope, said a planning ministry official.

Some 13 provisions of the public procurement law and 35 provisions of public procurement rules will be amended, after calls from ministries and divisions, including local government and power, and the Prime Minister's Office.

The amendments were finalised after several meetings among the relevant ministries and the development partners with Planning Minister AHM Mustafa Kamal in the chair.

Prices and the volume of work have changed much since the law was enacted. The law has to be modified in light of the change in circumstances, according to the official.

One of the amendments includes the cancellation of a bid if the quoted price is 10 percent less or more than the official estimate for national works.

The move comes as many bidders landed jobs previously quoting lower prices and they ended up doing poor work.

At present, in case of limited tender below Tk 2 crore if the quote is 5 percent less or more than the estimate the bidder's quotation is cancelled.

A limited tendering method means getting the job done by a contractor listed with the purchasing authorities.

The existing law allows participation of new contractors under the limited tendering method for works of up to Tk 2 crore. But in the amendment the amount is going to be raised to Tk 3 crore.

Another major amendment is the introduction of several conditions on purchases by state-owned autonomous bodies.

The government entities can now make purchases of any amount just with the approval from their boards.

The finance ministry has recommended that the proposals for purchases upwards of Tk 100 crore should be sent to the purchase committee.