The Punjab Transparency in Public Procurement Act, 2019.

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Regd. No. NW/CH-22 Regd. No. CHD/0092/2018-2020
EXTRAEXTRAEXTRAEXTRAEXTRA ORDINARORDINARORDINARORDINARORDINAR Y YY YY
Published by AuthorityPublished by AuthorityPublished by AuthorityPublished by AuthorityPublished by Authority
CHANDIGARH, TUESDAY, SEPTEMBER 10, 2019
(BHADRA 19, 1941 SAKA)
( lxxxvi )
LEGISLATIVE  SUPPLEMENT
Contents Pages
Part - I Acts
The Punjab Transparency in Public
Procurement Act, 2019.
(Punjab Act No. 12 of 2019) .. 97-132
Part - II Ordinances
Nil
Part - III Delegated Legislation
Nil
Part - IV Correction  Slips,  Republications and
Replacements
Nil

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Short title, extent
and
commencement.
Definitions.
PART I
GOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL  AND LEGISLATIVE AFFAIRS, PUNJAB
NOTIFICA TION
The 10th September, 2019
No. 15-Leg./2019.- The following Act of the Legislature of the State of
Punjab received the assent of the Governor of Punjab on the  24th day of
August, 2019, is hereby published for general information:-
THE PUNJAB TRANSPARENCY IN PUBLIC PROCUREMENT
ACT, 2019
(Punjab Act No. 12 of 2019)
AN
ACT
to establish legal foundations for procedures for procurement by public
entities so as to ensure timely delivery of intended outcomes with efficiency,
economy, integrity and accountability, transparency, fair and equitable treatment
of bidders, public confidence regarding good governance in the process and
for the matters connected therewith or incidental thereto.
BE it enacted by the Legislature of the State of Punjab in the Seventieth
Year of the Republic of India as follows: -
Chapter I
Preliminary
1. (1) This Act may be called the Punjab Transparency in Public
Procurement Act, 2019.
(2) It shall extend to the whole of the State of Punjab.
(3) It shall come into force on and with effect from the date of its
publication in the Official Gazette.
2. In this Act, unless the context otherwise requires,-
(a) “bid” means a formal offer made in pursuance of an invitation by a
procuring entity and includes any tender, proposal or quotation;
(b) “bidder” means any person, company, firm, agency, institution, etc.
participating in a procurement process of a procuring entity for
procurement of goods, works or services;
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(c) “bidder registration documents” means the documents issued by a
procuring entity, including any amendments thereto, that set out the
terms and conditions of registration proceedings and includes the
invitation to register;
(d) “bidding documents” means documents issued by the procuring
entity, including any amendments thereto, that set out the terms and
conditions of the given procurement and includes the invitation to
bid;
(e) “bid security” means a security provided to the procuring entity by
a bidder for securing the fulfillment of any obligation in terms of the
provisions of the bidding documents;
(f) “e-procurement” means the electronic process wherein the physical
tendering activity is carried out online using the internet and associated
technologies;
(g) “goods” includes all articles, material, commodities, electricity ,
livestock, furniture, fixtures, raw material, spares, instruments,
software, machinery, equipment, industrial plant, vehicles, aircraft,
ships, railway rolling stock and any other category of goods, whether
in solid, liquid, gaseous or intangible form, purchased or otherwise
acquired by the procuring entity as well as services or works
incidental to the supply of the goods if  the value of services or
works or both does not exceed that of the goods themselves;
(h) “invitation to bid” means a document published by the procuring
entity inviting bids relating to the subject matter of procurement and
any amendment thereto and includes notice inviting tender and
request for proposal;
(i) “pre-qualification” means the procedure set out to identify, prior to
inviting bids, the bidders that are qualified;
(j) “pre-qualification documents” means the documents issued by a
procuring entity, including any amendments thereto, that set out the
terms and conditions of the pre-qualification proceedings and
includes the invitation to pre-qualify;
(k) “prescribed” means prescribed by rules made under this Act;
(l) “procurement” or “public procurement” means the acquisition by
purchase, lease, licence or otherwise of goods, services or works
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including award of Public Private Partnership projects, by a procuring
entity whether directly or through an agency with which a contract
for procurement services is entered into, but does not include any
acquisition without consideration, and “procure” or “procured” shall
be construed accordingly;
(m) “procurement contract” means a contract entered into between
the procuring entity and a successful bidder concerning the subject
matter of procurement;
(n) “procurement process” means the process of procurement
extending from the issue of invitation to pre-qualify or to register or
to bid till the award of the procurement contract or cancellation of
the procurement process, as the case may be;
(o) “procuring entity” means an entity referred to in sub-section (2) of
section 3;
(p) “Public Private Partnership” means an arrangement between the
procuring entity on one side and the private sector entity on the
other, for the provision of public assets or public services or both,
through investments being made or management being undertaken,
or both investments being made and management being undertaken,
by the private sector entity, for a specified period of time, where
there is well defined allocation of risk between the private sector
and the procuring entity and the private entity receives performance
linked payments that conform (or are benchmarked) to specified
and pre-determined performance  standards, measurable by the
procuring entity or its representative;
(q) “rate contract” means an agreement between a procuring entity
and one or more bidders which specifies the terms and conditions,
including the price, for the supply of a subject matter of procurement
required on a recurring basis;
(r) “registered bidder” means any bidder who is on a list of registered
bidders of the procuring entity maintained under section 18;
(s) “services” means any subject matter of procurement other than
goods or works and includes physical, maintenance, professional,
intellectual, consultancy and advisory services or any service
classified or declared as such by a procuring entity and does not
include appointment of any person made by any procuring entity;
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Application.
(t) “State Government” means the Government of State of Punjab in
the Department of Finance;
(u) “subject matter of procurement” means any item of procurement
whether in the form of goods, services or works; and
(v) “swiss challenge” means a method of procurement in which an
unsolicited proposal is received for a project that predominantly
involves uniqueness and specificity of design/ technology/ intellectual
property for that project and third parties are allowed to challenge
the original proposal through open bidding, and then the original
proponent is given a chance to counter-match the most
advantageous/most competitive offer; and
(w) “works” mean all works associated with the construction,
reconstruction, site preparation, demolition, repair, maintenance, or
renovation of railways, roads, highways or a building, an
infrastructure, or structure or an installation or any construction
work relating to excavation, drilling, installation of equipment and
materials, as well as services incidental to the works if the value of
those services does not exceed that of the works themselves.
3. (1) This Act shall apply to all procurements which are met from the
Government Accounts, including the Consolidated Fund of the State, Public
Accounts and Contingent Fund of the State.
(2) For the purposes of this Act, “procuring entity” means,-
(a) any department of the Government of Punjab or its attached
or subordinate office;
(b) any Public Sector Enterprise owned or controlled by the
Government of Punjab;
(c) any entity established or constituted by the Constitution of
India or an Act of Parliament, whose expenditure is met from
the Consolidated Fund of the State;
(d) any entity or Board or Corporation or authority or Society or
Trust or Commission or autonomous body (by whatever name
called) established or constituted by an Act of the S tate
Legislature;
(e) any entity that receives grant or financial aid out of the
Consolidated Fund of the State or retains any levy/user
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charges/fees etc. collected from the public after being
authorized to do so by the State Government and is owned or
controlled or managed by the Government of Punjab;
(f) any other entity which the S tate Government may , by
notification, specify to be a procuring entity for the purpose of
this Act, being an entity that receives substantial financial
assistance from the State Government in so far as the utilization
of such assistance towards procurement is concerned; and
(g) any procurement support agency or procurement agent or
procurement consultant involved in procurement on behalf of
the procuring entities specified in clauses (a) to (f) above.
(3) Notwithstanding anything contained in sub-section (1), provisions
of this Act shall not apply to a procuring entity subject to any obligation of the
Government of Punjab under or arising out of any agreement,-
(a) entered into by the Central Government with any other country
or with an intergovernmental international financing institution;
or
(b) to which the Government of Punjab is party with one or more
State Governments or with the Central Government, and the
requirements of such agreement shall prevail over the
provisions of this Act.
4. Subject to such rules as may be made in this behalf consistent with the
provisions of sections 5 and 7 the provisions of Chapter II and III shall not
apply to,-
(a) any procurement, the estimated cost or value of which is less than
the threshold value as the State Government may, by notification,
specify for different classes or categories of procurements or
procuring entities;
(b) emergency procurement necessary for the management of any
disaster, as defined in clause (d) of section 2 of the Disaster
Management Act, 2005 (Central Act No. 53 of 2005);
(c) the procurement under Assembly and Parliamentary election
urgency;
(d) procurement for the purposes of security or on strategic
considerations that the State Government may, by general or special
order, specify;
Exemptions.
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Documentary
record of
procurement
proceedings
and of
communications.
(e) procurement by a procuring entity under clause (b) to clause (f) of
sub-section (2) of section 3 from its subsidiary company or joint
venture company in which such procuring entity has more than
fifty percent share; and
(f) any other procurement, as may be notified by the State Government.
Chapter II
General principles of public procurement
5. (1) In relation to a public procurement, the procuring entity shall have
the responsibility and accountability to,-
(a) ensure efficiency, economy and transparency;
(b) provide fair and equitable treatment to bidders;
(c) promote competition; and
(d) put in place mechanisms to prevent corrupt practices.
(2) Subject to the provision of sub-section (3) of section 3, every
procuring entity shall carry out its procurement in accordance with the provisions
of this Act and the rules and guidelines made thereunder.
6. (1) The procuring entity shall maintain a record of its procurement
proceedings, which shall include  the following, namely:-
(a) documents pertaining to determination of need for procurement
under section 8;
(b) description of the subject matter of the procurement under
section 12;
(c) statement of the reason for choice of a procurement method
other than open competitive bidding;
(d) particulars of the participating bidders;
(e) requests for clarifications and any responses thereto including
during pre-bid conferences;
(f) bid prices and other financial terms;
(g) summary of the evaluation of bids;
(h) details of any appeal under section 49, and the related
decisions; and
(i) any other information or record, as may be prescribed .
(2) Any document, notification, decision or other information generated
Fundamental
principles.
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in the course of a procurement, including in connection with appeals under
section 49 or in the course of a meeting or forming part of the record of the
procurement process, shall be in a  form  that provides a record of the content
of the information and is accessible so as to be usable for subsequent reference.
(3) Subject to the provisions of the Right to Information Act, 2005
(Central Act No. 22 of 2005) or of any other law for the time being in force
relating to retention of records, the procuring entity shall retain the documentary
record indicated in sub-sections (1) and (2), for such period, as may be
prescribed after the expiry of the procurement process or procurement contract,
as the case may be, so as to enable audit or such other review .
7. (1) No officer or employee of a procuring entity or a person participating
in a procurement process shall act in contravention of the code of integrity as
specified hitherto.
(2) The code of integrity referred to in sub-section (1) shall include the
following, namely:-
(a) prohibiting,-
(i) any offer, solicitation or acceptance of any favour, bribe,
reward or gift or any material benefit, either directly or
indirectly, in exchange for an unfair advantage in the
procurement process or to otherwise influence the
procurement process or the action of other party;
(ii) any omission, including a misrepresentation that misleads
or attempts to mislead so as to obtain a financial or other
benefit or avoid an obligation;
(iii) any collusion, bid rigging or anti-competitive behaviour
to impair the transparency, fairness and progress of the
procurement process;
(iv) improper use of information shared between the
procuring entity and the bidders with an intent to gain
unfair advantage in the procurement process or for
personal gain;
(v) any financial or business transactions between the bidder
and any officer or employee of the procuring entity;
(vi) any coercion including impairing or harming or
threatening to do the same, directly or indirectly, to any
Code of integrity
for procuring
entity and
bidders.
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party or to its property to influence the procurement
process; and
(vii) any obstruction of any investigation or audit of a
procurement process;
(b) timely disclosure  of conflict of interest; and
(c) timely disclosure by the bidder of any previous transgressions
with any entity in India or  any other country during the last
three years or of any debarment by any other procuring entity.
(3) Without prejudice to the provisions of Chapter XII, in case of any
breach of the code of integrity by a bidder or prospective bidder , as the case
may be, the procuring entity may take appropriate measures including,-
(a) exclusion of the bidder from the procurement process;
(b) calling off of pre-contract negotiations and forfeiture or
encashment of bid security;
(c) forfeiture or encashment of any other security or bond relating
to the procurement;
(d) recovery of payments made by the procuring entity along with
such interest, as may be prescribed;
(e) cancellation of the relevant contract and recovery of
compensation for loss incurred by the procuring entity; and
(f) debarment of the bidder from participation in future
procurements of the procuring entity for a period not exceeding
three years under section 56.
Chapter III
Procurement planning
8. (1) The procuring entity shall to begin with determine the need for  the
subject matter of procurement.
(2) The procuring entity shall while assessing the need under sub-section
(1) take into consideration the following matters, namely:-
(a) the scope or quantity of procurement;
(b) the method of procurement to be followed with justification
thereof;
(c) need for pre-qualification, if any;
Determination of
need for
procurement.
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(d) limitation on participation of bidders in terms of section 13, if
any applicable, and justification thereof;
(e) estimated cost of  procurement;
(f) timeline for procurement; and
(g) any other matter as may be prescribed.
9. (1) The procuring entity shall prepare an annual procurement plan
before/at the beginning of every financial year.
(2) A procuring entity shall take into consideration the matter specified
in sub-section (2) of section 8 while preparing its annual procurement plan in a
rational manner and in particular shall,-
(a) avoid emergency procurement, wherever possible;
(b) aggregate its requirements, wherever possible, both within the
procuring entity and between procuring entities, to obtain value
for money and reduce procurement costs;
(c) avoid splitting of procurement; and
(d) integrate its procurement budget with its expenditure
programme.
(3) The annual procurement plan, including its updates, shall atleast
contain the following, namely:-
(a) a brief description of goods, works or services for which
procurement is to take place during the respective financial
year;
(b) the proposed methods of procurement pursuant to the
provisions in this Act and the rules made there under;
(c) any provision of preference in accordance with section 13 of
this Act;
(d) the time schedule for key procurement activities; and
(e) such other matter, as may be prescribed.
(4) The annual procurement plan prepared pursuant to sub-section (3)
may be further updated by the procurement entity with the approval of the
concerned Administrative Department, provided that the updated plan shall
remain within the approved Annual Budgetary Allocation for the procurement
entity.
Annual
procurement
plan.
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Description of
the subject matter
of procurement.
(5) The procuring entity shall publish the annual procurement plan
prepared pursuant to sub-section (3) of this section on the State Public
Procurement Portal and on the website of the concerned procuring entity:
Provided that the publication of information under this sub-section shall
not be construed as initiation of procurement process and cast any obligation
on the procuring entity to issue bidding document or confer any right on
prospective bidders.
Chapter IV
Pre-tendering
10.  (1) A procuring entity shall obtain the approval of the authority having
the necessary financial powers before initiating a procurement process.
(2) A procuring entity shall neither split its procurement nor use a
particular valuation method for estimating the value of procurement so as to
avoid its obligation under sub-section (1) or to limit competition among bidders
or otherwise avoid its obligations under this Act:
Provided that in the interest of efficiency, economy and timely completion
or supply, a procuring entity may, for reasons to be recorded in writing, and
with prior approval of the Administrative Department split its procurement into
appropriate packages.
11. (1) Subject to the rules as may be made by the State Government in
this behalf, every procuring  entity shall pre-determine a reasonable time frame
for completion of various stages of the process of procurement and indicate
the same in the pre-qualification documents, bidder registration documents or
bidding documents, as the case may be.
(2) The procuring entity shall endeavour to adhere to the time frame
indicated under sub-section (1) and in case of failure to do so extend such time
frame for reasons to be recorded in writing.
Chapter V
Tendering
12. (1) The description of the subject matter of procurement shall be set
out in the pre-qualification documents, bidder registration documents and the
bidding documents and shall, –
(a) be such as to meet the essential needs of the procuring entity;
(b) to the extent practicable-
(i) be objective, functional, generic and measurable;
Time frame for
processing.
Obligations
related to value of
procurement.
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Participation of
bidders.
(ii) set out the relevant technical, quality and performance
characteristics; and
(iii) not indicate a requirement for a particular trade mark,
trade name or brand.
(2) Where applicable, the technical specifications shall, to the extent
practicable, be based on national technical regulations or recognised national
standards or building codes, wherever such standards exist and in their absence,
relevant International Standards may be used.
13. (1) The procuring entity shall not establish any requirement aimed at
limiting participation of bidders in the procurement process that discriminates
against or among bidders or against any category thereof, except when
authorised or required to do so by this Act or the rules or guidelines made
thereunder or by the provisions of any other law for the time being in force.
(2) The State Government may, by notification in  this  behalf,  provide
for  mandatory procurement of any subject matter  of  procurement  from  any
category  of  bidders,  and purchase or price preference in procurement from
any category of bidders, on the following grounds, namely:-
(a) the promotion of domestic industry;
(b) socio-economic policy of the Central Government or the State
Government;
(c) any other consideration in public interest in furtherance of a
duly notified policy of the Central Government or the State
Government:
Provided that any such notification shall contain a
reasoned justification for such mandatory or preferential
procurement, the category of suppliers chosen and the nature
of preference provided.
(3) The procuring entity, when inviting the participation of bidders in
the procurement process, shall declare whether participation of bidders is limited
pursuant to this section and on what ground and any such declaration may not
ordinarily be later altered.
(4) Nothing in this section shall be construed as preventing the State
Government or any procuring entity from imposing or enforcing measures
limiting participation on account of the need,-
(a) to protect public order, morality or safety; or
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Qualifications of
bidders.
(b) to protect human, animal or plant life or their health; or
(c) to protect intellectual property; or
(d) to protect the essential security and strategic interest of India.
14. (1) A procuring entity may determine and apply one or more of the
requirements specified in sub-section (2) for a bidder to be qualified for
participating in a procurement process.
(2) Any bidder participating in the procurement process shall,-
(a) possess the necessary professional, technical, financial and
managerial resources and competence required by the bidding
documents, pre-qualification documents or bidder registration
documents, as the case may be, issued by the procuring entity;
(b) have fulfilled his obligation to pay taxes payable to the Central
Government or the State Government or any local authority
as may be specified in the bidding documents, pre- qualification
documents or bidder registration documents;
(c) not be insolvent, in receivership, bankrupt or being wound up,
not have its affairs administered by a court or a judicial officer,
not have its business activities suspended and must not be the
subject of legal proceedings for any of the foregoing reasons;
(d) not have their Directors and officers convicted of any criminal
offence related to their professional conduct or the making of
false statements or misrepresentations as to their qualifications
to enter into a procurement contract within a period of three
years preceding the commencement of the procurement
process, or not have been otherwise disqualified pursuant to
debarment proceedings;
(e) not have a conflict of interest as may be prescribed and
specified in the pre-qualification documents, bidder registration
documents or bidding documents, which materially affects  fair
competition; and
(f) fulfil any other qualifications as may be prescribed.
(3) Subject to the right of bidders to protect their intellectual property
or trade secrets, the procuring entity may require a bidder to provide any such
information or declaration as it considers necessary to make an evaluation in
accordance with sub-section, (1).
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Pre-qualification
of bidders.
(4) Any requirement established pursuant to this section shall be set
out in the pre-qualification documents or bidder registration documents, if any,
and in the bidding documents and shall apply equally to all bidders.
(5) The procuring entity shall evaluate the qualifications of bidders only
in accordance with the requirement specified in this section.
15. (1) Subject to the provisions of this Act and the rules and guidelines
made thereunder, a procuring entity may choose to,-
(a) call for bids in which the technical, quality  and  performance
aspects,  commercial terms  and conditions and the financial
aspects including the price are contained in a single envelope;
or
(b) if it is of the opinion that it is essential to evaluate the technical
aspects of a bid before considering its financial aspect, call
for bids in two envelopes, namely:-
(i) the techno-commercial bid containing the technical,
quality and performance  aspects, commercial terms and
conditions; and
(ii) the financial bid containing financial aspects, including
the price.
(2) In case the procuring entity calls for bids in terms of clause (b) of
sub-section (1), the techno-commercial bid shall be opened and evaluated first
and the financial bid of only those bidders that have been found technically
acceptable shall be opened and evaluated.
16. (1) A procuring entity may engage in a pre-qualification process, with
a view to identifying, prior to inviting bids, the bidders that are qualified for any
specified period of time.
(2) For the purpose of sub-section (1), a procuring entity  may  invite
offers  from  prospective  bidders by giving wide publicity to the invitation  to
pre-qualify  and  shall  publish  the particulars of the  bidders that are qualified
on  the  State Public Procurement   Portal.
(3) Where a procuring entity has undertaken a pre-qualification process
in respect of any procurement, only such pre-qualified  bidders  shall  be  entitled
to  continue  in  the  procurement   proceedings.
(4) The procuring entity shall decide who is pre-qualified in accordance
with section 14 and the criteria set out in the  pre-qualification documents.
Single envelope
and two envelope
bids.
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Post qualification
of bidders.
Registration of
bidders.
(5) Every pre-qualification process shall be carried out in such manner
and in  accordance  with such procedure, as may  be prescribed.
17. (1) The procuring entity may, where bidders have not been pre-qualified,
determine whether the bidder whose bid  or  proposal  has  been determined  to
offer lowest  evaluated  bid  in the  case of procurement or the highest evaluated
bid in the case of disposal of public assets by bid, has  the capacity, capability
and resources  to  carry  out effectively  the  contract as offered  in  the  bid
before communicating the award decision.
(2) The post qualification criteria shall itself be laid out in the  bidding
documents and  if  the  bidder  fails to meet any of these criteria, the bid shall
be rejected and the  procuring  entity  shall  make  a  similar determination for
the next lowest evaluated bid in the case of procurement and next highest bid
in the case of disposal  of public asset by bidder.
(3) A procuring entity may require a bidder  who  has  submitted  a
lowest  evaluated  bid  in  the case of procurement or highest evaluated bid in
the case of disposal of public asset by  bid  to  demonstrate again its qualifications
before the  award of contract is   confirmed.
(4) The criteria and procedures to be used in sub-section (3) shall be
the same as those used in the pre-qualification proceedings set out in section
16 of this Act and shall be specified in the bidding documents prepared by the
procuring entity.
(5) The procuring entity shall, where bidder with the lowest or highest
evaluated bid fails to post-qualify, reject its bid and select the next lowest or
highest evaluated  bid  from  the  remaining bids, provided the procuring entity
has a right to reject all remaining bids in accordance  with  section  24.
18. (1) With a view to establishing reliable sources for a subject matter of
procurement or a class of procurement, which may be commonly required
across  procuring  entities  or  repeatedly required  by a  procuring entity , a
procuring entity  may maintain a  panel of registered bidders.
(2) For the purpose of sub-section (1), a procuring entity may  invite
offers  from  prospective  bidders by giving wide publicity to the invitation  to
register  and  such  registration  shall  be  done in accordance with section 14,
this section and the criteria set out in  the  bidder  registration documents.
(3) The  procuring entities shall update the list of registered  bidders by
allowing potential  bidders  to apply for registration on a continuous basis  or
by  inviting  offers  for  registration  at  least once in a year.
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Standard bidding
documents.
Time frame for
submission of
bids.
Pre-bid clarifi-
cations.
(4) The State  Government  may  prescribe  the  procedure  and
conditions  for  registration  of bidders and  the  period  for which  such
registration  shall be valid.
(5) Where a procuring entity does not register bidders in respect of  a
subject  matter  of procurement, it may use the list of registered bidders of
other procuring entity, if any.
(6) The results of the registration process shall be intimated to the bidders
and the list of registered bidders for the subject matter of procurement shall be
published on the State Public Procurement Portal.
19. (1) A procuring entity shall use such standard bidding documents, as
may be prescribed, for the purpose of procurement.
(2) Any deviation from the use of standard bidding document by a
procuring entity shall only be with reasons to be recorded in writing and with
due approval of the appropriate authority of the procuring entity.
20. (1) A procuring entity, while fixing the last date by which bids are to  be
submitted  by  the  bidders, shall take into account,-
(a) the need of the bidders for  having  a  reasonable  time  to  prepare
and  submit  their  bids; and
(b) the period for effecting procurement as envisaged in annual
procurement plan and bidding document.
(2)  Subject to the provisions of  section  22,  the  maximum  time  as
may  be  allowed  for submission of bids shall be the same for all bidders.
21. (1) Any bidder may, in writing, seek clarifications from the procuring
entity in respect of  the  bidding documents.
(2) The period within which the bidders may seek clarifications under
sub-section  (1)  and  the period within which the procuring  entity  shall
respond  to  such  requests  for  clarifications  shall be specified in the  bidding
documents.
(3) All requests for clarifications and responses thereto shall  be
intimated  to  all  bidders  and  where applicable, shall  be published  on the
State Public Procurement  Portal.
(4) A procuring entity may hold a pre-bid conference to clarify doubts
of potential  bidders  in  respect of a particular procurement  and  the  records
of such  conference  shall  be  intimated to all bidders and where applicable,
shall  be  published  on the  State  Public Procurement Portal.
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Changes to
bidding
documents.
Procedure relating
to submission,
opening and
evaluation of
bids.
22. (1) In case any modification is made to the  bidding  documents  or  any
clarification  is  issued  which materially affects the terms contained in the
bidding documents, the  procuring  entity shall publish such modification or
clarification in the same manner as the publication  of the initial  bidding
documents.
(2) In case a clarification or modification is  issued  to  the  bidding
documents,  the  procuring  entity may, prior to the last date for submission of
bids, extend  such time  limit  in  order to  allow the bidders  sufficient time to
take into account the clarification or modification, as the   case  may  be, while
submitting their bids.
(3) Any bidder who has submitted his bid in response to the original
invitation shall have the opportunity to modify or re-submit it, as the case may
be, within the period of time originally allotted or such extended time as may be
allowed for submission  of  bids, when changes are  made to  the  bidding
documents by  the  procuring entity:
Provided that in such cases, the bid last submitted or the bid as modified
by the bidder, shall be considered for evaluation.
23. Subject to the terms and conditions as may be laid  down  in  the  bidding
documents, submission of bids, opening and evaluation of bids,  including
constitution of committees for these purposes shall be in accordance with the
rules as may be made.
24. (1) A procuring entity shall exclude a bid if,-
(a) the bidder is not qualified in terms of section 14; or
(b) the bid materially departs from the requirements specified in the
bidding documents or it contains  false information; or
(c) the bidder submitting the bid, his agent or any one acting on his
behalf, gave or agreed to  give, to any officer or employee of the
procuring entity or other governmental authority a gratification in
any form, or any other thing of value, so as to unduly influence the
procurement process; or
(d) a bidder, in the opinion of the procuring entity, has a  conflict  of
interest  materially affecting  fair competition.
(2) A bid shall be excluded as soon as the cause for its exclusion is
discovered.
(3) Every decision of a procuring entity to exclude a bid shall be for
reasons to be recorded in writing.
Exclusion of bids.
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113
Cancellation of
the procurement
process.
(4) Every decision of the procuring entity under sub-section (3) shall
be, -
(a) communicated to the concerned bidder in writing; and
(b) published on the State Public Procurement Portal.
25. (1) A procuring entity may, for reasons to be recorded in writing, cancel
the  process  of procurement  initiated  by it,-
(a) at any time prior to the acceptance of the successful bid; or
(b) after the successful bid is accepted in accordance with  sub-sections
(4) and (5).
(2) The procuring entity shall not open any bids or proposals after taking
a decision to cancel the procurement and shall return such unopened bids or
proposals.
(3) The decision of the procuring entity to cancel the procurement
alongwith the reason to do so shall be immediately communicated to all the
bidders who participated  in  the  procurement  process.
(4) If the bidder whose bid has been accepted as successful fails to
sign any written procurement contract as required, or fails to provide any
required security for the performance  of  the  contract,  the  procuring entity
may  cancel the  procurement process.
(5) If a bidder is convicted of any offence under this Act, the procuring
entity may,-
(a) cancel the relevant procurement process if the bid of the convicted
bidder  has  been  declared as successful but no  procurement
contract has been entered  into; or
(b) rescind the relevant contract or forfeit the payment of all or a part
of the contract value if the  procurement contract has been entered
into  between the  procuring entity and the  convicted   bidder.
26. (1) A procuring entity shall have the power to blacklist a bidder for a
specified time from participating in public  procurement  proceedings and  inform,
in writing, all  procuring entities of  such actions.
(2) A bidder who has been blacklisted and/or debarred from taking
part in public procurement by an international  organization or by Government
of India or any other State Government, shall  automatically  be blacklisted
from participating in public  procurement in the State for such  period  as  is
Blacklisting.
PUNJAB GOVT. GAZ. (EXTRA), SEPTEMBER 10, 2019
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114
debarred  by  that  international organization or Government of India or any
other State Government, as the case may be.
(3) A bidder shall be black listed from participating in public  procurement
or disposal  proceedings if,-
(a) fraud or corrupt practice is established against the bidder in
accordance  with  the  provisions  of  this Act; or
(b) the  bidder fails to  abide with a  bid  securing declaration; or
(c) the  bidder breaches a  procurement  contract; or
(d) the bidder  makes  false  representation about  his  qualifications
during  bid proceeding.
(4) Subject to sub-section (3), the procedure for blacklisting shall be
such, as may be prescribed.
(5) A bidder blacklisted pursuant to this section may appeal against
such decision within twenty one days from the date when he became aware or
should have become aware of such a decision.
(6) A procuring entity shall keep and maintain a record of all blacklisted
firms in such manner, as may be prescribed.
(7) A bidder blacklisted under this section shall not be eligible to bid
through a new supplies, contracting or consulting or services firm for the purpose
of public procurement during the period of blacklisting.
(8) All procuring entities shall not procure from, contract with or engage
a bidder who has been blacklisted from participating in public procurement
proceedings pursuant to this Act.
(9) The procuring entity shall inform the relevant professional bodies, if
applicable, upon blacklisting a bidder.
(10) For the purpose of this section, a blacklisted bidder shall include all
the director(s)/partners/proprietors/associates/promoters of the company or
firm or limited liability partnership, as the case may be.
Chapter VI
Procurement methods
27. (1) Subject to the provisions of this Act and the rules made thereunder,
a procuring entity may procure a subject  matter of procurement  by  means of
any  of  the following methods, namely:-
Methods of
procurement.
PUNJAB GOVT. GAZ. (EXTRA), SEPTEMBER 10, 2019
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Open competitive
bidding.
(a) Open  Competitive Bidding; or
(b) Limited Bidding; or
(c) Two  stage Bidding; or
(d) Single  Source Procurement; or
(e) Reverse Auction; or
(f) Request  for Quotations; or
(g) Spot  Purchase; or
(h) Competitive negotiations; or
(i) Rate Contract; or
(j) Government e-Market (GeM); or
(k) Swiss Challenge; or
(l) any other method of procurement notified by the State  Government
satisfying  the principles of procurement contained in this Act and
which the State Government considers necessary in public interest.
(2) Except as provided in section 33 of this Act, E-procurement shall
be compulsory for different stages and types of procurement to be carried out
under this Act. Every requirement for written communication under this Act
shall, therefore, be deemed to have been satisfied if it were done by electronic
means:
Provided that, in case, a procuring entity chooses to carry out public
procurement under this Act, through physical means, it shall be only after a
prior approval of the Administrative Department.
(3) In procuring a subject matter of procurement, every procuring entity
shall follow such procedure in respect of the relevant method of procurement,
as may be prescribed.
(4) The financial limit for each of the procurement method shall be
such,  as may be prescribed.
28. (1) Every procuring entity shall prefer the  open  competitive  bidding
as  the  most  preferred method of procurement to  be followed.
(2) Open competitive bidding may also be followed in case  of  two
stage  bidding  in  terms  of  section 31, reverse auction in terms of section 32
and rate contract  in  terms of section 35.
(3) The procuring entity may follow the pre-qualification procedure
specified in  section 16 and invite  bids from  pre-qualified  bidders only.
PUNJAB GOVT. GAZ. (EXTRA), SEPTEMBER 10, 2019
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Limited bidding.
(4) Where the procuring entity chooses a method of procurement other
than the open competitive bidding, it shall record  the reasons and  circumstances
thereof.
(5) In case of an open competitive bidding, the procuring entity shall
invite bids by publishing an invitation to bid on the State Public Procurement
Portal and  in  at  least  one  such  other  manner , as  may  be prescribed.
29. (1) A procuring entity may  choose  to  procure  the  subject  matter of
procurement by  the  method of limited  bidding, if,-
(a) the subject matter of procurement can be supplied only  by a limited
number of bidders; or
(b) the time and cost involved to examine and evaluate a large number
of bids may not be commensurate with the value of  the  subject
matter of  procurement; or
(c) owing to an urgency brought about by unforeseen events, the
procuring entity is of  the opinion that the subject matter of
procurement cannot  be  usefully  obtained  by  adopting  the  method
of open competitive bidding; or
(d) procurement from  a  category  of  prospective  bidders  is necessary
in terms of  sub-section (2) of  section 13.
(2) Subject to the rules as may be made in this behalf, the procedure
for limited bidding  shall  include  the following, namely:-
(a) the procuring entity  shall issue an invitation to  bid by writing directly,
and on the  same  day, to,-
(i) all the bidders who can supply the subject matter of procurement
in terms of clause (a) of sub-section (1); or
(ii) all the bidders who are registered for the subject matter of
procurement with the procuring entity or with any other
procuring entity , where procuring entity uses the list of
registered bidders of such other procuring entity in terms of
sub-section (5) of section 18; or
(iii) an adequate number of bidders who can supply the subject
matter of procurement selected in a non-discriminatory manner
to ensure effective competition, in case of clause (b) of sub-
section (1); and
(b) a procuring entity may allow all  prospective  bidders  who  fulfill
the  qualification  criteria laid down for the procurement, whether
PUNJAB GOVT. GAZ. (EXTRA), SEPTEMBER 10, 2019
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117
Single source
procurement.
an invitation to bid has been  issued  to  such  a bidder or not, to
participate in the bidding process.
30. (1) A procuring entity may  choose  to  procure  the  subject  matter of
procurement by  the  method of single  source  procurement, if,-
(a) the subject matter of procurement is available only from a particular
prospective bidder, or a  particular prospective bidder has exclusive
rights with respect to the subject matter of procurement, such that
no reasonable  alternative or substitute  source  exists,  and  the use
of any other procurement  method would, therefore,  not  be
possible; or
(b) owing to a sudden unforeseen event, there is an extremely urgent
need  for  the  subject matter of procurement, and engaging in any
other method of procurement would be impractical; or
(c) the procuring entity, having procured goods, equipment, technology
or services from a supplier, determines that additional supplies or
services must be procured  from  that supplier for reasons of
standardization or because of the need  for  compatibility  with
existing  goods, equipment, technology  or  services; or
(d) there is an existing contract for the subject matter of procurement
which  can  be  extended for additional goods, works or services
and that the procuring entity is satisfied that no advantage would be
obtained by further competition, the prices  are  reasonable  and
provisions  for  such extension  exist in the original contract; or
(e) the procuring entity determines that the use of any other method of
procurement is not appropriate  for the  protection of  national
security  interests; or
(f) procurement from a  particular prospective bidder is necessary in
terms of sub-section (2)  of section 13; or
(g) subject  matter is  of a

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