chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Public Procurement Act, 2007

28. Two-Stage Bidding: (1) Two-stage bidding may be invited in the following circumstances: -

(a) If it is not possible to fully ascertain the technical aspects of the goods, construction works, or services to be procured, or the terms of the procurement contract, at the time of invitation of bids; or

(b) If the nature of the goods, construction works, or services to be procured is complex, necessitating discussions with bidders on how various technical aspects or procurement contract related issues may be resolved, and on such technical aspects, contract terms, and benefits thereof.

(2) When inviting bids at the first stage pursuant to this section, the procurement objective, expected performance, outline specifications, other outline characteristics, and the bidder's qualifications shall be mentioned in the bid documents, and it shall be stated that the bidder is not required to open the price in the bid, but only to submit a technical proposal and comments on the proposed procurement contract terms.

(3) The public entity may hold discussions with any or all bidders regarding the bids received pursuant to the bid invitation under sub-section (2).

(4) Considering the discussions held pursuant to sub-section (3) regarding the bids received under sub-section (2), the public entity may do the following: -

(a) Cancel proposals relating to bids that are not responsive due to inability to meet the basic requirements for procurement, to perform minimum works, to complete works within the specified period, or to be amended to meet such requirements, complete works, or complete works within the specified period, or due to any other deficiency;

(b) Revise or improve technical specifications, evaluation criteria, and procurement contract terms to enhance competition;

(c) Determine the evaluation method to assess the suitability of various options presented by bidders.

(5) After completing the action pursuant to sub-section (4), the public entity shall invite bids at the second stage. When inviting such bids, bidders whose bids were not cancelled under that sub-section shall be invited to submit bids with prices in accordance with the revised bid documents.

(6) Except as provided in this section, the proceedings relating to the second-stage bids made pursuant to sub-section (5) shall be conducted in accordance with the provisions set forth in this Chapter. Chapter-4

Provisions Relating to Consulting Services

29.
Public Procurement Act, 2007

30. Public Invitation for Expressions of Interest and Preparation of Short List: (1) If it is necessary to procure consulting services of an amount exceeding the prescribed amount, the public entity shall publish a notice in a national level newspaper stating the matters as prescribed, allowing a period of at least fifteen days to collect expressions of interest from persons, firms, organizations, or companies willing to provide such consulting services.

(2) The notice under sub-section (1) may be placed on the website of the concerned ministry of the public entity or the Public Procurement Monitoring Office.

(3) An international expression of interest shall be invited in the following circumstances: -

(a) If it is necessary to procure consulting services of an amount exceeding the prescribed amount;

(b) If consulting services as required by the public entity cannot be obtained from more than one consultant within the State of Nepal at a competitive price;

(c) If no proposal is received when proposals are invited at the national level for consulting services, and it is necessary to obtain services from a foreign consultant; or

(d) If it is necessary to obtain services from a consultant by inviting an international expression of interest, to be borne from foreign aid resources according to an agreement with the donor agency.

(4) When inviting the expression of interest under sub-section (3), the notice shall be published in the English language.

(5) After evaluating the qualifications, experience, and capability, among others, of the parties submitting expressions of interest under sub-section (1) or (3), the public entity shall prepare a short list by selecting generally three to six expression of interest parties, as prescribed, who are capable of providing such consulting services.

(6) When it is necessary to procure consulting services of an amount less than the prescribed amount, the public entity may, by completing the procedure as prescribed, prepare a list of persons, firms, organizations, or companies capable of providing such consulting services, and shall, from among the persons, firms, organizations, or companies included in that list, invite proposals pursuant to section 31 by completing the procedure as prescribed. 31.
Public Procurement Act, 2007

31. Invitation of Proposals: (1) After the short list has been prepared pursuant to section 30, the public entity shall send the proposal documents as prescribed to the expression of interest parties included in that short list, granting a period of at least thirty days, and invite proposals from them.

(2) The following matters shall be mentioned in the proposal documents under sub-section (1): -

(a) Name and address of the public entity;

(b) Nature of the services to be procured, period within which the services are to be provided, place, scope-of-work terms, tasks to be completed, and expected results;

(c) Instructions to proposers for preparing proposals;

(d) That the technical and financial proposals are to be placed in separate sealed envelopes, clearly indicating on the outside of each envelope what type of proposal it is, and that both proposals are to be placed in another separate sealed envelope mentioning the subject of the requested service;

(e) Technical and financial evaluation weight;

(f) Basis and weight for proposal evaluation and comparison;

(g) Terms of the procurement contract;

(h) Place, date, and time for submission of proposals;

(i) Method for selecting proposals;

(j) That proposals will not be processed in case of conflict of interest, and information on legal action in case of corruption or fraud;

(k) Provision for the proposer to file a petition for review against an error or decision made by the public entity while processing the proposal; and

(l) Other matters as prescribed.

(3) When stating the bases for proposal evaluation pursuant to clause (f) of sub-section (2) in the proposal documents under sub-section (1), any or all of the following bases for evaluating the technical proposal shall be specified as required: -

(a) The consultant's experience relating to the work to be done;

(b) Quality of the proposed methodology for performing the work by the consultant;

(c) Qualifications of the proposed key personnel;

(d) Arrangement for transfer of knowledge and technology;

(e) In the case of an international proposal, details of the proposed key Nepali personnel for performing the work.

(4) When stating the method for selecting proposals pursuant to clause (i) of sub-section (2) in the proposal documents under sub-section (1), it shall be mentioned which of the following methods the selection of proposals will be based on: -

(a) Quality and Cost Based Selection method;

(b) Quality Based Selection method;

(c) Fixed Budget Selection method; or

(d) Least Cost Selection method.

(5) Notwithstanding anything contained in sub-section (4), if the nature of the consulting services to be procured is unusually complex or if such services may have a significant impact on the national economy or future projects, the selection of proposals may be made completely based on the Quality Based Selection method, as prescribed.
Public Procurement Act, 2007

32. Opening of Proposals: (1) After the final deadline for submission of proposals has expired, the outer envelope of the proposals received from proposers shall be opened and the sealed envelopes of the technical and financial proposals shall be separated.

(2) Among the envelopes separated under sub-section (1), the technical proposal shall be opened first, and the envelope of the financial proposal shall be kept separate and safe without opening.

(3) The envelope of the financial proposal separated under sub-section (2) shall be opened only after evaluating the technical proposal pursuant to section 33.

(4) Other provisions relating to the opening of technical proposals shall be as prescribed. 33. Evaluation of Technical Proposal: The technical proposal shall be evaluated according to the basis of evaluation stated in the proposal documents. 34. Opening of Financial Proposal: Only the financial proposals of proposers who become qualified from the evaluation of technical proposals shall be opened as prescribed. 35. Evaluation of Financial Proposal: (1) The financial proposal opened pursuant to section 34 shall be evaluated as follows: -

(a) If the Quality and Cost Based Selection method is adopted for selecting proposals, a combined evaluation of the technical proposal and the financial proposal shall be made, and the proposal of the proposer obtaining the highest score shall be selected as prescribed.

(b) If the Quality Based Selection method is adopted for selecting proposals, only the proposal of the proposer obtaining the highest score in the technical proposal shall be selected.

(c) If the Fixed Budget Selection method is adopted for selecting proposals, proposals with a cost exceeding the limit of such budget shall be cancelled, and the proposal of the proposer who falls within such budget limit and obtains the highest score in the technical proposal shall be selected.

(d) If the Least Cost Selection method is adopted for selecting proposals, the proposal of the proposer with the lowest cost among the proposers who obtain the minimum score prescribed for passing the technical proposal shall be selected.

(2) Other provisions relating to the evaluation of financial proposals shall be as prescribed. 36. Rejection of Proposals and Cancellation of Procurement Proceedings: (1) In the following circumstances, the public entity may reject all proposals or cancel the procurement proceedings: -

(a) If all received proposals are not substantially responsive according to the scope-of-work terms;

(b) If the cost of the selected proposer is substantially higher than the cost estimate and available budget;

(c) If the consulting services are no longer required; or

(d) If it is proved that the proposers have submitted proposals in collusion with each other. Provided that proceedings may be conducted regarding the proposals of proposers who have not colluded. 37.
Public Procurement Act, 2007

Provided that proceedings may be conducted regarding the proposals of proposers who have not colluded. 37. Negotiations with Proposer: (1) Negotiations may be held with the proposer selected pursuant to section 35 on matters relating to the scope of work and the proposed service, progress reports, and facilities to be provided by the public entity.

(2) Except in the case under clause (b) of sub-section (1) of section 35, there shall be no negotiations regarding the remuneration of professionals in relation to the financial proposal. Provided that negotiations may be held regarding expenses of a reimbursable nature.

(3) If agreement acceptable to both the public entity and the proposer cannot be reached during negotiations under this section, the public entity shall, in the case of proposals under clauses (a), (b), and (c) of sub-section (1) of section 35, negotiate with the next proposer obtaining the highest score, and in the case of proposals under clause (d), with the next proposer with the lowest cost, sequentially. 38. Entering into Procurement Contract: (1) The proposal of the proposer with whom agreement has been reached in the negotiations under section 37 shall be selected for acceptance.

(2) Within seven days of the selection of a proposal under sub-section (1), the public entity shall give a notice of intention to accept the proposal so selected to the concerned proposer and to other proposers on the list.

(3) If no proposer files a petition pursuant to section 47 within seven days of giving notice under sub-section (2), the proposal of the proposer selected under sub-section (1) shall be accepted, and he/she shall be given a notice with a fifteen-day period to come and enter into a contract.

(4) If he/she appears to enter into the contract within the period under sub-section (3), he/she shall enter into a contract pursuant to section 52; and if he/she does not appear, the public entity shall, in the case of proposals under clauses (a), (b), and (c) of sub-section (1) of section 35, negotiate with the next proposer obtaining the highest score, and in the case of clause (d), with the next proposer with the lowest cost, sequentially, in accordance with section 37, and enter into a contract pursuant to section 52. 39. Other Provisions Relating to Consulting Services: Other methods of obtaining consulting services and the evaluation procedure thereof shall be as prescribed. Chapter-5

Other Provisions Relating to Procurement

40.
Public Procurement Act, 2007

41. Provisions Relating to Direct Procurement: (1) Notwithstanding anything contained elsewhere in this Act, in the following circumstances, goods or consulting services or other services may be procured directly, or construction works may be carried out directly: -

(a) Petty procurement up to the prescribed amount;

(b) If the technical expertise or capability to fulfill the procurement related conditions is with only one supplier or contractor or consultant or service provider;

(c) If the right to supply the goods to be procured is with only one supplier and there is no other suitable alternative;

(d) If, for the replacement or expansion of existing goods or services or installed equipment parts, changing the supplier or consultant or service provider would make it impossible to replace or expand the goods or services in the public entity, and it is necessary to procure additional proprietary type goods or services within the prescribed limit from the original supplier or consultant or service provider;

Added by the First Amendment.(d1) If one public entity needs to make any procurement from another public entity;

Added by the First Amendment.(d2) If goods or services need to be procured from an international inter-governmental organization at the rates set by that organization;

Added by the First Amendment.(d3) If procurement needs to be made in special circumstances;

(e) If, due to unforeseen reasons, construction works, goods, consulting services, or other services that were not included in the initial contract and that are technically or economically difficult to complete separately from the initial contract need to be procured within the prescribed limit; or

(f) If there is an urgent need for the services of a particular consultant with specific (unique) qualifications for the related work, or if there is an unavoidable reason to obtain services from the original consultant.

(2) Notwithstanding anything contained elsewhere in this section, when making procurement pursuant to clauses (b), (e), and (f) of sub-section (1), in the case of a public entity under sub-clause (1) of clause (b) of section 2, procurement shall be made as decided by the Government of Nepal, the Council of Ministers, based on the recommendation of the following committee; and in the case of other public entities, procurement shall be made as decided by the supreme executive body of that entity: -

(a) Chief Secretary, Government of Nepal - Coordinator

(b) Secretary, Ministry of Finance - Member

(c) Secretary, concerned Ministry - Member

(d) Comptroller General - Member

(e) Deleted by the First Amendment.P

(3) When making direct procurement under sub-section (1), the public entity may prepare a written description of its requirements and special matters relating to quality, quantity, supply terms, and time, as prescribed, request a written rate or proposal from only one supplier or contractor or consultant or service provider, and, after negotiation as necessary, make the procurement.
Public Procurement Act, 2007

Provided that, if approval from any authority is required under this Act for such procurement, procurement shall be made only after obtaining prior approval and entering into a contract. 42. Special Provisions Relating to Ration Procurement: (1) Notwithstanding anything contained elsewhere in this Act, when procuring rations, the public entity shall follow the procedure as prescribed on the following matters: -

(a) Cost estimate and its approval;

(b) Price escalation;

(c) Eligibility of bidders;

(d) Bid security;

(e) Submission of bids; and

(f) Other matters as prescribed.

(2) Procedures other than those mentioned in sub-section (1) shall be as provided in this Act. 43. Provisions Relating to Hiring of Land and Buildings and Engaging Services on Contract: Notwithstanding anything contained elsewhere in this Act, the public entity may, when hiring land and buildings or engaging services on contract as prescribed, make procurement by following the procedure as prescribed. 44. Work May Be Carried Out through Consumer Committee or Beneficiary Community: If economy, quality, or sustainability will be enhanced by carrying out construction works or obtaining related services through a consumer committee or beneficiary community, or if the main objective of the project itself is to create employment and involve the beneficiary community, such work may be carried out or services obtained through the consumer committee or beneficiary community by completing the procedure as prescribed. 45. Work May Be Done or Got Done through Departmental Execution: (1) Works of a general nature such as maintenance, minor routine works, or cleaning may be done through departmental execution or got done through a consumer committee.

(2) The procedure to be completed when doing or getting work done under sub-section (1) shall be as prescribed. 46. Work May Be Got Done through Non-Governmental Organizations: If getting work such as public awareness training, orientation, empowerment, mainstreaming, done through non-governmental organizations is faster, more effective, and economical, the public entity may get such work done or obtain services from non-governmental organizations by following the procedure as prescribed. Chapter-6

Provisions Relating to Review of Procurement Proceedings or Decisions

47.
Public Procurement Act, 2007

Chapter-6

Provisions Relating to Review of Procurement Proceedings or Decisions

47. Petition May Be Filed before the Head of Public Entity: (1) Any bidder or proposer may file a petition before the head of the concerned public entity for review of an error or decision made by the public entity while conducting procurement proceedings or making a decision, or for failure to perform a duty that should have been performed, stating the reason that he/she has or may suffer loss due to such error or failure.

(2) The petition for review under sub-section (1) shall be limited to proceedings prior to the signing of the procurement contract.

(3) When filing a petition under sub-section (1), if any period is prescribed for filing such petition under this Act, it shall be filed within such period; and if no such period is prescribed, the petition shall be filed within seven days from the date on which the bidder or proposer came to know of the error in procurement proceedings or the failure to perform a duty by the public entity.

(4) In the petition under sub-section (1), it shall be clearly stated what act or omission of the public entity caused such error or non-performance of duty, and which provision of this Act or the rules or directives made under this Act such decision is contrary to.

(5) No proceedings shall be conducted on a petition for review received after the expiry of the period under sub-section (3).

(6) If, during investigation of the petition received under sub-section (1), any error is found in the procurement proceedings, the public entity appears not to have performed its duty, or such decision appears to be contrary to law, the head of the public entity shall suspend the procurement proceedings and make a reasoned written decision within five days of receipt of such petition. Added by the Some Nepal Acts Amendment Act, 2062.(6a) After the head of the public entity has made a decision pursuant to sub-section (6) on a petition filed under sub-section (1), if a petition is filed before the Review Committee against that decision, the procurement contract shall not be entered into during the period within which notice may be received at the public entity pursuant to sub-sections (1) and (2) of section 50.

(7) The decision under sub-section (6) shall also mention how the procurement proceedings are to be proceeded with.

(8) If a petition under sub-section (1) relates to procurement proceedings of an amount less than the prescribed amount, no petition for review may be filed before the Review Committee against the decision made by the head of the public entity under sub-section (6). 48.
Public Procurement Act, 2007

48. Review Committee: (1) For the purpose of reviewing petitions under section 49, the Government of Nepal shall constitute a Public Procurement Review Committee consisting of a chairperson and members as follows: -

(a) One person from among a judge of the High Court, or a person who has served as a judge of the High Court, or a person retired from a special class post of the Government of Nepal - Chairperson

(b) One person from among persons retired from the first class of the Nepal Engineering Service of the Government of Nepal - Member

(c) One person from among experienced and expert persons in the field of public procurement - Member

(2) In appointing a member under clause (c) of sub-section (1), a person serving as an employee in a public entity shall not be appointed.

(3) The term of office of the chairperson or member appointed under sub-section (1) shall be three years. Provided that, when making the first appointment of members, one member shall be appointed for a term of one year and the other member for a term of two years.

(4) The term of office of the chairperson or member under sub-section (1) may be extended for one term.

(5) The terms of service, remuneration, and facilities of the chairperson or member under sub-section (1) shall be as prescribed by the Government of Nepal.

(6) The chairperson or member under sub-section (1) shall, before assuming office, submit information as prescribed to the Government of Nepal through the Public Procurement Monitoring Office.

(7) In the following circumstances, the Government of Nepal may remove the chairperson or member from his/her office: -

(a) If he/she engages in misconduct;

(b) If he/she is unable to perform the duties of the office due to lack of efficiency or competence; or

(c) If he/she is convicted by a court for a criminal offense involving moral turpitude. 49. Petition May Be Filed before the Review Committee: A bidder or proposer may file a petition before the Review Committee for review in the following circumstances: -

(a) If a petition filed before the public entity under section 47 relates to procurement proceedings of an amount exceeding the prescribed amount, and the head of that entity has not made a decision on that petition within the period mentioned in sub-section (6) of that section, or if the petitioner is not satisfied with the decision given by him/her;

(b) Regarding a procurement contract entered into pursuant to section 52. 50.
Public Procurement Act, 2007

50. Manner of Review: (1) A bidder or consultant filing a petition before the Review Committee for review under section 48 shall, for the matter under clause (a) of section 49, file the petition within seven days, and for the matter under clause (b), within a period of thirty days from the date of such contract.

(2) Within three days of receipt of a petition under sub-section (1), the Review Committee shall send a copy of such petition and any documents attached thereto, if any, to the concerned public entity, and notify it to provide information and response on the work done in that regard.

(3) Within three days of receipt of the notice under sub-section (2), the public entity shall provide the related information and response to the Review Committee.

(4) Based on the information and response received under sub-section (3), the evidence and documents submitted by the petitioner along with the petition, and, if necessary, after hearing both parties, the Review Committee shall make a decision within thirty days of receipt of the petition under sub-section (1).

(5) When making a decision under sub-section (4), the Review Committee may make a decision as follows: -

(a) To dismiss the petition;

(b) If the procurement contract has not been entered into, -

(1) To order the public entity not to perform an unauthorized act or decision or adopt wrongful procedure;

(2) To order the public entity to cancel, wholly or partially, the unauthorized act or decision made by it;

(3) If any error is found in the evaluation of bids or proposals and re-evaluation is necessary, to order re-evaluation citing such error.

(c) If the procurement contract has been entered into, and the Review Committee believes that the petitioner ought to have received such contract, to recommend to the public entity to pay the petitioner a reasonable amount of compensation considering the loss suffered by the petitioner.

(6) A petitioner filing a petition for review under this section shall provide security as prescribed.

(7) If the petition is dismissed under clause (a) of sub-section (5), such security amount shall be forfeited. 51.
Public Procurement Act, 2007

51. Procurement Proceedings to Be Stayed: (1) After receipt of notice of a petition filed for review under sub-section (1) of section 50, the public entity shall stay the procurement proceedings until a decision is made by the Review Committee on that petition.

(2) Notwithstanding anything contained in sub-section (1), procurement proceedings shall not be stayed in the following circumstances: -

(a) If the public entity notifies the Review Committee that it is necessary to continue the procurement proceedings due to an important public interest involved in the procurement proceedings, providing proof thereof; or

(b) If the Review Committee fails to make a decision within the period under sub-section (4) of section 50; or

(c) If the procurement contract has already been entered into.

(3) If the public entity does not stay the procurement proceedings pursuant to clauses (a) and (b) of sub-section (2), it shall inform the Review Committee thereof. Chapter-7

Provisions Relating to Procurement Contract

52. Procurement Contract and Its Terms: (1) The public entity shall, when making procurement other than petty procurement under this Act, enter into a procurement contract in accordance with this section.

(2) The procurement contract under sub-section (1) shall include the terms mentioned in the bid documents, proposal documents, or sealed quotation form, and such terms may be as follows according to the nature of the contract: -

(a) Names and addresses of the parties to the procurement contract, phone and fax numbers, and contact person for contract implementation;

(b) Scope of work of the procurement contract;

(c) Description of documents forming part of the procurement contract and their order of priority;

(d) Performance schedule;

(e) Time for supply, time for performance of work, or provision regarding whether extension of time is permissible or not;

(f) Amount of the procurement contract or the method of determining it;

(g) Conditions for acceptance of goods, construction works, or services;

(h) Deleted by the First Amendment. Terms and method of payment including payment in foreign currency;

(i) Force Majeure;

(j) Provision for price adjustment, if any;

(k) Provision for issuance of variation orders and amendment of procurement contract, if any;

(l) Provision relating to insurance, if required;

(m) Required securities;

(n) Liquidated damages for failure to perform work within the stipulated time;

(o) Provision relating to bonus for completion of work before the stipulated time;

(p) Provision for termination of procurement contract;

(q) Provision for whether sub-contracting is permissible or not;

(r) Dispute resolution mechanism;

(s) Applicable law; and

(t) Other matters as prescribed. Added by the First Amendment.52a.
Public Procurement Act, 2007

Added by the First Amendment.52a. Provision Relating to Advance Payment: (1) The public entity may, after entering into a procurement contract, upon taking an advance bank guarantee from the supplier, contractor, or service provider, provide an advance payment not exceeding twenty percent of the procurement contract amount.

(2) When providing advance payment under sub-section (1), the first installment shall not exceed half of the approved advance amount, and the remaining amount may be provided based on work progress.

(3) Except in the case under sub-section (5) of section 10, the advance amount shall be paid only through a bank account opened separately for the contracted work.

(4) The supplier, contractor, or service provider shall commence work within thirty days from the date of receipt of the first advance payment under sub-section (2).

(5) Details of the purpose for which the advance amount under sub-section (2) was spent shall be updated and provided to the concerned public entity as prescribed.

(6) If the advance taken under this section is found not to have been used for the related work, the advance bank guarantee taken under sub-section (1) shall be forfeited.

(7) Other provisions relating to advance payment shall be as prescribed. 53. Amendment of Procurement Contract: The procurement contract may be amended by written consent of both parties, provided that the basic nature or scope of work is not altered, unless otherwise provided in the procurement contract. Provided that when issuing a variation order pursuant to section 54 or making price adjustment pursuant to section 55, the procurement contract need not be amended. Amended by the First Amendment.54.
Public Procurement Act, 2007

Provided that when issuing a variation order pursuant to section 54 or making price adjustment pursuant to section 55, the procurement contract need not be amended. Amended by the First Amendment.54. Variation Order: (1) If circumstances that could not be foreseen at the time of entering into the procurement contract arise during the implementation of the contract, stating the clear reason therefor, a variation order may be issued by the following authority, following the procedure as prescribed: -

(a) Variation up to five percent by the head of the concerned public entity at the class two gazetted level or equivalent;

(b) Variation up to ten percent by the head of the public entity at the class one gazetted level or equivalent;

(c) Variation up to fifteen percent by the departmental head;

(d) Variation from fifteen percent up to twenty-five percent by the secretary of the concerned ministry or the head of the concerned body equivalent thereto;

(e) Variation above twenty-five percent, in the case of a public entity under sub-clause (1) of clause (b) of section 2, by the Government of Nepal, the Council of Ministers;

(f) Variation above fifteen percent, in the case of a public entity under sub-clause (2) of clause (b) of section 2, by the supreme executive body of that entity.

(2) When issuing a variation order under clause (e) of sub-section (1), in the case of a public entity under sub-clause (1) of clause (b) of section 2, the concerned ministry shall form a group of experts, make necessary inquiries through that group, and based on the recommendation so obtained, the Government of Nepal, the Council of Ministers, upon the proposal of the concerned ministry, may issue a variation order; and in the case of a public entity under sub-clause (2) of clause (b) of section 2, the supreme executive body of that entity shall form a group of experts, make necessary inquiries through that group, and may issue a variation order only on the basis of the recommendation so obtained.

(3) Notwithstanding anything contained in clauses (a) and (b) of sub-section (1), an authority lower than the authority that approved the cost estimate shall not issue a variation order.

(4) Notwithstanding anything contained in sub-section (1), a variation order above fifteen percent of a procurement work worth up to sixty lakh rupees may be issued by the departmental head. 55. Price Adjustment in Procurement Contract: (1) Unless otherwise provided in the procurement contract, if it becomes necessary to make price adjustment during the implementation of a procurement contract with a duration of more than twelve months, the authorized officer may make price adjustment.
Public Procurement Act, 2007

55. Price Adjustment in Procurement Contract: (1) Unless otherwise provided in the procurement contract, if it becomes necessary to make price adjustment during the implementation of a procurement contract with a duration of more than twelve months, the authorized officer may make price adjustment. Provided that, in the procurement of public construction works where a national level bid has been invited and a procurement contract has been entered into, if the price of any construction material unexpectedly fluctuates by more than ten percent of the original price, price adjustment shall be made as prescribed by deducting ten percent from the amount so decreased or increased.

(2) Notwithstanding anything contained in sub-section (1), price adjustment shall not be made if the work under the contract is not completed within the period specified in the contract due to delay by the person receiving the procurement contract, resulting in extra time being taken; or if the procurement contract is a lump sum contract or is based on a fixed budget. 56. Provision Relating to Extension of Contract Period: (1) The provision relating to extension of the period of a procurement contract shall be as stated in the concerned procurement contract.

(2) Notwithstanding anything contained in sub-section (1), if the period of the procurement contract cannot be avoided due to force majeure, failure of the public entity to provide matters it was supposed to provide, or other reasonable cause, the authorized officer may, upon application by the person receiving the contract, extend the period on the prescribed basis. 57. Payment of Bills or Invoices: The public entity shall make payment of bills/invoices as prescribed, subject to the procurement contract. 58. Dispute Resolution Mechanism: (1) Any dispute arising between the public entity and the contractor, supplier, service provider, or consultant during the implementation of the procurement contract shall be resolved by mutual agreement. Added by the First Amendment.(1a) If a dispute cannot be resolved by mutual agreement under sub-section (1), it shall be mentioned in the procurement contract that the dispute shall be resolved through mediation in accordance with

Added by the First Amendment.61A.
Public Procurement Act, 2007

62. Conduct of bidder or proposer: (1) A bidder or proposer must fulfill the obligations as mentioned in this Act or the rules made under this Act, the procurement contract, and other procurement-related documents.

(2) Without prejudice to the generality of subsection (1), a bidder or proposer shall not, with the intention of influencing the procurement process or the implementation of the procurement contract, do or cause to be done the following acts:-
(a) give or offer an improper inducement, directly or indirectly,
(b) submit misrepresentation or deception of facts,
(c) engage in or be involved in any corrupt or fraudulent act,
(d) interfere in any manner with the participation of other competing bidders or proposers involved in the work or proceedings related to the bid or proposal,
(e) engage in any act of intimidation or coercion, directly or indirectly, threatening to cause bodily injury or property damage to any person involved in the procurement proceedings,
(f) engage in collusion or become involved in a group before or after the submission of bids or proposals, with the intention of dividing procurement-related work among bidders or proposers, or fixing the price of the bid or proposal in an artificial or non-competitive manner, or otherwise depriving the public entity of the benefit of open and free competition,
(g) contact the public entity or engage in any act influencing the examination and evaluation of bids or the evaluation of proposals, with the intention of influencing the bid or proposal during the period from the opening of the bid or proposal until the notice of acceptance of the bid or proposal is given.

(3) A bidder who has been given the responsibility of preparing bid documents or specifications for any procurement work or monitoring the implementation of procurement, or any person, firm, institution, company associated with him/her, or an employee working in such firm, institution, or company, shall not participate in the bid proceedings of such procurement. Provided that this provision shall not apply in the case of a turnkey procurement contract or a procurement contract made to perform both design and construction work. 63.
Public Procurement Act, 2007

Provided that this provision shall not apply in the case of a turnkey procurement contract or a procurement contract made to perform both design and construction work. 63. Blacklisting and removal from blacklist: (1) In the following circumstances, the Public Procurement Monitoring Office may blacklist a bidder, proposer, consultant, service provider, supplier, construction entrepreneur, or other person, firm, institution, or company for a period of one to three years based on the seriousness of their act:-
(a) if it is proved that an act contrary to the conduct under section 62 has been done,
Amended by the First Amendment.(b) if the bidder or proposer selected for approval pursuant to section 27 or 38 fails to enter into a procurement contract,
(c) if, during the implementation of the procurement contract, a material defect is committed or the obligation according to the contract is materially not fulfilled, or it is later proved that the work according to the procurement contract is not of the quality as per the contract,
(d) if the person is convicted by a court of any criminal offense rendering them ineligible to participate in a procurement contract,
(e) if it is proved that the procurement contract was made by fabricating qualifications or by deception, or
(f) any other circumstance as prescribed.

(2) A bidder, proposer, consultant, service provider, supplier, construction entrepreneur, or other person, firm, institution, or company blacklisted pursuant to subsection (1) shall not participate in the procurement proceedings of a public entity for the same period.

(3) Notwithstanding anything elsewhere written in this section, a person, firm, institution, or company blacklisted by an authorized body under the prevailing law for non-repayment of a loan from a bank or financial institution shall not participate in public procurement proceedings for the duration of their remaining on such list.

(4) If a person, firm, institution, or company that is unable to participate in public procurement proceedings pursuant to subsection (2) or (3) is found to have participated in procurement conducted by a public entity, no action shall be taken on their bid or proposal.

(5) Other procedures relating to blacklisting pursuant to subsection (1) shall be as prescribed.

(6) Concerning the removal from the blacklist of a bidder, proposer, consultant, service provider, supplier, construction entrepreneur, or other person, firm, institution, or company that is on the blacklist pursuant to subsections (1), (2), (3), (4) and (5), they shall be removed from the blacklist according to the criteria prepared by the Public Procurement Monitoring Office. Chapter-9

Provision relating to monitoring of procurement work

64.
Public Procurement Act, 2007

If such a letter is received, the error shall be corrected and the head of the concerned public entity or the concerned authority shall take action against the concerned official in accordance with the law and inform the Public Procurement Monitoring Office.

(3) The Public Procurement Monitoring Office shall perform the work of the secretariat of the Review Committee pursuant to section 48 and arrange the budget required for that Committee. Chapter-10
Miscellaneous

66. Provision relating to procurement in special circumstances: (1) Notwithstanding anything elsewhere written in this Act, if a special circumstance arises and there is a situation where additional loss or damage may occur to the public entity if procurement is not made immediately, the public entity may make or cause to be made immediate procurement.

(2) The head of the public entity shall provide information regarding the circumstance pursuant to subsection (1) and detailed particulars of the procurement to be made immediately to the officer one level higher.

(3) Other provisions relating to procurement in special circumstances shall be as prescribed. 67. Instances where procurement process under this Act is not required to be followed: (1) Notwithstanding anything elsewhere written in this Act, the procurement process under this Act shall not be required to be followed in the following circumstances:-
(a) if the Government of Nepal decides that following the process under this Act is not appropriate from the perspective of national security or defense for making purchases related to security, strategic or defense, or
(b) if procurement is required to be made in accordance with the procurement guidelines of a donor party under an agreement between the Government of Nepal and that party,
Added by the First Amendment.(c) if a public entity as prescribed has to procure any goods or services for business operation by competing with the private sector,
Added by the First Amendment.(d) if procurement has to be made abroad as prescribed for events such as fairs, festivals, trade fairs or exhibitions organized abroad for social, cultural programs or industrial, economic, technology demonstration and promotion,
Added by the First Amendment.(e) if a public entity such as a Nepalese embassy or mission abroad has to procure goods or services,
Added by the First Amendment.(f) if a public entity authorized to operate air services has to procure aviation or aircraft-related equipment.
Public Procurement Act, 2007

Added by the Act to Amend Some Nepal Acts, 2082.(g) if procurement is to be made in special circumstances pursuant to section 66, or if the Government of Nepal decides to procure through an infrastructure company, stating the reasons for inability to procure, in a situation where it is necessary to carry out some construction work immediately and procurement cannot be made by completing the process under this Act.

(2) While making a decision pursuant to clause (a) of subsection (1), the Government of Nepal shall also determine a separate procedure relating thereto, stating the reason for the need to procure. Added by the First Amendment.(3) A public entity shall, for procurement pursuant to clauses (c), (d), (e) and (f) of subsection (1), make the necessary procedure, obtain consent from the Public Procurement Monitoring Office, get it approved, and implement it. Added by the First Amendment.(4) The procedure made by a public entity pursuant to subsection (3) shall, for procurement pursuant to clause (f) of subsection (1), include matters such as business plan, life cycle and net present value. Added by the First Amendment.67A. Not to hinder procurement proceedings: If an authorized body needs to call for any documents for the purpose of investigation pursuant to this Act or the prevailing law in relation to procurement proceedings being conducted by a public entity, it shall call for such documents in a manner that does not hinder the continuation of the procurement proceedings as much as possible. 68. Methods of communication: (1) Any document, notice, decision or other information mentioned in this Act and the rules made under this Act, bid documents, request for proposals or procurement contract which is to be given by a public entity to a bidder or consultant, or by a bidder or consultant to a public entity, shall, unless otherwise provided in this Act, be given in writing.

(2) If, while sending a notice pursuant to subsection (1), the address of the bidder or consultant to receive such notice cannot be found or such notice cannot be delivered for any other reason, a public notice shall be published in a national daily newspaper mentioning a brief description of that matter, and if such notice is published, that person shall be deemed to have received the notice duly. 69. Procurement transaction may be made through electronic means: (1) A public entity may adopt an electronic procedure system alone for any or all processes of procurement work.

(2) The procedure, system and inherent principles of procurement made through electronic system pursuant to subsection (1) shall be as determined by the Procurement Monitoring Office.

(3) Other procedures relating to electronic procurement shall be as prescribed. 70.
Public Procurement Act, 2007

70. Legal documents to be kept on website: This Act, and the rules and procurement directives made under this Act shall be kept on the website of the Public Procurement Monitoring Office for the information and convenience of the general public. 71. Evaluation committee to be formed: (1) To examine and evaluate pre-qualification proposals, bids, expressions of interest or proposals for consultancy services, or sealed quotations, a public entity shall form an evaluation committee as prescribed.

(2) The functions, duties and powers of the evaluation committee formed pursuant to subsection (1) shall be as prescribed. 72. Record of procurement proceedings: A public entity shall keep records of documents relating to procurement proceedings in a safe manner for the prescribed period. 73. Delegation of authority: An authorized officer may delegate, to any employee, such of the powers conferred upon him/her under this Act or the rules made under this Act, except the powers as prescribed to be non-delegable. 74. Power to make rules: (1) The Government of Nepal may make necessary rules for the implementation of the objectives of this Act.

(2) Notwithstanding anything written in subsection (1), public entities other than the public entity mentioned in sub-clause (1) of clause (b) of section 2 may make necessary rules subject to the Act, rules or formation order relating to such entities. Added by the Act to Amend Some Nepal Acts to Make Conformable to the Constitution of Nepal, 2075.(3) The provincial government and local level may make rules, not inconsistent with this Act and accepted principles of procurement, on matters including approving cost estimates, evaluating and approving bids, direct procurement, the committee to remain pursuant to subsection (2) of section 41, and designating the officer for issuing variation orders, while conducting their procurement proceedings under this Act. Added by the First Amendment.74A. May make technical guidance, procedures and directives: For the implementation of this Act, the Public Procurement Monitoring Office may make necessary technical guidance, procedures or directives, and such procedures or directives shall come into force after approval by the Government of Nepal. Added by the First Amendment.74B. Power to remove difficulties: If any difficulty arises in the implementation of this Act, the Government of Nepal may, by publishing a notice in the Nepal Gazette, issue necessary orders to remove such difficulty. 75. Repeal and amendment: (1) The proviso to section 168 of the Vehicle and Transport Management Act, 2049 is hereby repealed.