CONTRACT SYS IN MIL FARM
1
AIM
To apprise student offrs about the contact sys of Mil Farm
2
INTRO
• Procurement through Contract Sys
• Contractors
• Offr to Vigilant
• To know as to where one stand
• Agents of the Govt (President of Pak)
3
CONTRACT
• An agreement
• Perform an act in return for a consd
• Mutually agreed upon
• Agreement enforceable by law
4
PRE QUALIFICATION OF CONTRACTOR
• Relevant experience
• Past performance
• Fin posn
• Legally competent
• Aval of resources
• Appropriate managerial cap
5
PROCUREMENT PLANNING
• Realistic req
• Aval resources
• Completion date
• Generic specification with no brands
• PPRA Rule Rs >5 M
• Info on website until the closing date
• Response 15 working days for national competitive bidding
• 30 working days for Intl competitive bidding
6
REQ FOR CONTRACT
• Legally competent (Offr and contractor)
• Legal agreement
• Firm regn cert
• Agreement wise and appropriate
• Contract on merit
• Provn of written agreement PAFZ-2120, 2137 & 2137-A 7
REQ FOR CONTRACT
• Safe custody of docus
• No access to contractor to official docus
• Comm of official info by snr offr
• Timely wng before enforcing a penalty
• Enable contractor to set matters straight
8
REQ FOR CONTRACT
• Never be under personal obligation of contractor
• Contractor not allow to visit FO office
• Allow only in the presence of an offr/ Supr
• No interviewed from contractor at the residences
9
PRELIMINARY STEPS
• Fol PPRA rule
• Wide publicity for tenders
• Registration of max contractors
• Up date the tender forms (PAFZ- 2120) where req
• Earnest Money from contractor
• Ensure aval of nec forms/ docus in desired qty
10
EARNEST MONEY
Sr No Contract Value (Rs) Earnest Money
1 ABOVE 10 M 200,000.00
2 5 – 10 M 200,000.00
3 4–5M 100,000.00
4 3–4M 80,000.00
5 2–3M 60,000.00
6 1–2M 40,000.00
7 BELOW 1 M 30,000.00
11
STANDING SECURITY
Sr No Contract Value (Rs) Deposit Money
1 Above 50 M 500,000.00
2 40 – 50 M 450,000.00
3 30 – 40 M 400,000.00
4 20 – 30 M 400,000.00
5 10 – 20 M 350,000.00
6 5 – 10 M 300,000.00
7 4–5M 250,000.00
8 3–4M 200,000.00
9 2- 3 M 150,000.00
10 1- 2 M 100,000.00
11 Below 1 M 100,000.00
10 days within acceptance notice PAFZ 2124
12
CALLING FOR CONTRACTS
Advertisement Prep of tender form Receipt of tenders
Submission of
Prep of comparative
contract proposal to Opening of tenders
statement
GHQ
Acceptance of
Concl of contracts Notice of acceptance
tenders
13
FIN POWER
CFA FIN POWERS
DG RV&F 45,00000
QMG 135,00000
COAS No Limit
14
OPEN COMPETITIVE BIDDING
• Principal method of procurement when amount >5 lac
• Submission sealed package Bids
• Specify the method of submission in clear manner
• Precise and unambiguous bidding docus
• In some cases national bidders only
• In accordance with govt policies
• Bid Security not more than 5 % 15
OPEN COMPETITIVE BIDDING
• Bid validity pd in the bidding docus
• No extn in the respective bid pd
• Reasons if extended
• Similar ad as original
• Opening/ Submission of bids
• Open at the date specified in the bidding docus
• Open 30 mins after the deadline for submission of bids
• Open all bids in the presence of the bidders or their rep 16
OPEN COMPETITIVE BIDDING
• Read clearly the unit price as well as the bid amount
• Record the mins of the bid opening
• Attendance sheet sign by bidder
• Delay bids stand rejected and returned without being opened
• Once bid open no bidder allow to alter or modify his bid
17
EXECUTION OF CONTRACT
• Demands
• Reception of Sup
• Acceptance
• Bills of contractors
• Reject
• Failure
• Risk purchase 18
ACCEPTANCE OF CONTRACT
• Delay may constitute acceptance
• Govt scales and wt
• Strictly forbidden to accept money in lieu of auth stores
• Dispute regarding qual and qty of sups
• Report matter to the CA
• Final decision by CA 19
TERMS AND CONDITIONS OF CONTRACT
• Sup of contracts del by the firm at his own cost
• Standing security at GHQ
• Del pd of the contract
• After expiry of del pd
• Cancellation or termination of contract
• Extension in del pd 20
TERMS AND CONDITIONS OF CONTRACT
• LD Charges with or without on discretion of DGRV&F
• Rel of Payment only to the rep of the firm
• Recovery of Income tax as applicable
• Remit into the ITO concern
• Visual insp on the receipt of consignment
• Samples to AFIN Lhr
• Acceptance 21
TERMS AND CONDITIONS OF CONTRACT
• 80 % Payment
• Remaining payment on completion of the contract
• Responsibility of unloading by firm
22
IMP PTS FOR CONSD
• Mistake in Docus
• Delay in payment to contractor
• Result in the breakdown of sups
• Lead to incorrect accounting and loss to state
• Particular attn on maint a docu record of sup
• Never threaten, abuse or manhandle the contractor
23
RESCIND OF CONTRACT
• CA rescind contract
• Sublet of contract
• Be guilty of fraud
• Offer any bribe
• Gratuity, gift, loan, perquisite or reward
• Fail to perform or observe any condition of the contract
24
RESCIND OF CONTRACT
• Commence any economic failure proceeding
• Fails to provide satisfactory performances
• Found to be indulging in corrupt or fraudulent practices
• Winding up of the company
• Business conjointly with any other contractor
• Involved in anti state activity
25
FAILURE AND TERMINATION
• Cancellation
• Risk Purchase
• Expense of the supplier without notice
• Supplier liable for any loss
• LD damages for the pd of delay up to the rate of 2%
• Not less than 1%
• Sup of stock from fresh crops 26
FAILURE AND TERMINATION
• Cancellation of contract at any stage by CA
• CA may inc or dec the contracted qty up to 15%
• No claim by contractor against the addition/ reduction
27
ALTN ARRANGEMENTS
• On Failure
• Procurement of Commodities locally
• Risk purchase
• Exp of the contractor
• If the commodity cannot be procured locally
• An auth substitute as covered in the contract
• procured at the risk
• Exp of the contractor
28
PENALITIES IMPOSED TO CONTRACTOR
• Black listing of firm
• Contractor Permanent / temp bar
• Blacklisting duly publicized and communicated to PPRA
• Forfeited security deposit
• Withhold of payment
29
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