Procurement Guidelines 2018

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PART I : SEC. (I) - GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA 09.05.2018
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The Gazette of the Democratic Socialist Republic of Sri Lanka
EXTRAORDINARY
wxl 2070$15 - 2018 uehs ui 09 jeks nodod - 2018'05'09
No. 2070/15 - WEDNESDAY, MAY 09 2018
(Published by Authority)
PART I : SECTION (I) — GENERAL

Government Notification
NATIONAL PROCUREMENT COMMISSION OF THE DEMOCRATIC SOCIALIST REPUBLIC
OF SRI LANKA
Procurement Guidelines – 2018
Published by the National Procurement Commission in terms of Article 156C (1) of the Constitution of
the Democratic Socialist Republic of Sri Lanka
GUIDELINES FOR THE PROCUREMENT OF GOODS, WORKS, SERVICES AND INFORMATION

SYSTEMS AND SELECTION AND EMPLOYMENT OF CONSULTANTS BY GOVERNMENT
INSTITUTIONS AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH AND
INCIDENTAL THERETO
In performance of the functions vested in terms of Article 156C (1) of the Constitution of the Democratic Socialist Republic
of Sri Lanka, the National Procurement Commission published these guidelines for procurement of goods and services, works,
consultancy services and information systems by government institutions and to provide for matters connected therewith
and incidental thereto.
The date from which these guidelines shall come into force replacing all Procurement Guidelines, Circulars and Directives as
prevalent on that date, shall be a date no later than 30 days after receipt of the approval of the Parliament for these Guidelines
in terms of Article 156C (1) of the Constitution of the Democratic Socialist Republic of Sri Lanka.
Interpretation of these guidelines and decisions on matters not covered by these guidelines shall be made by the National
Procurement Commission.
By order of the National Procurement Commission,
Eng. S.D.H. DE SILVA,

Acting Secretary General,
National Procurement Commission.
1A - PG 4057—457 (05/2018)
This Gazette Extraordinary can be downloaded from www.documents.gov.lk
2A I fldgi ( Î& fPoh - YS% ,xld m%cd;dka;s%l iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h - 2018'05'09
Democratic Socialist Republic of Sri Lanka
PROCUREMENT GUIDELINES
2018
GOODS, WORKS, SERVICES AND

INFORMATION SYSTEMS
NATIONAL PROCUREMENT COMMISSION

I fldgi ( Î& fPoh - YS% ,xld m%cd;dka;s%l iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h - 2018'05'09 3A
CONTENTS
DEFINITIONS ................................................................................................................................................. 8
ACRONYMS .................................................................................................................................................. 12
CHAPTER 1–GENERAL ............................................................................................................................. 14
1.1 Purpose .................................................................................................................................................. 14
1.2 Objectives .............................................................................................................................................. 14
1.3 Scope of Application ............................................................................................................................. 15
1.3.1 Guidelines of Foreign Funding Agencies....................................................................................... 15
1.4 Ethics in Procurement............................................................................................................................ 16
1.4.1 Confidentiality ................................................................................................................................ 16
1.4.2 Fraud and Corruption ..................................................................................................................... 16
1.4.3 Sanctions for Involvement in Fraud and Corruption...................................................................... 17
1.4.4 Conflict of Interest.......................................................................................................................... 17
1.5 Laws applicable to Procurement Actions .............................................................................................. 17
CHAPTER 2 - GOVERNANCE OF PROCUREMENT ACTIONS......................................................... 18

2.1 National Procurement Commission (NPC) ........................................................................................... 18
2.1.1 Role of the NPC ............................................................................................................................. 18
2.2 Roles and Responsibilities of Chief Accounting Officer and Accounting Officer (CAO and AO)
..................................................................................................................................................................... 18
2.3 Roles and Responsibilities of Procuring Entity (PE) ............................................................................ 18
2.4 Appointment of Procurement Committees (PCs) and Bid Evaluation Committees (BECs) and
Payments for PC/BEC Members .......................................................................................................... 19
2.4.1 Cabinet Appointed Procurement Committee (CAPC) ................................................................... 19
2.4.2 Standing Cabinet Appointed Procurement Committee (SCAPC) .................................................. 19
2.4.3 Ministry Procurement Committee (MPC)...................................................................................... 20
2.4.4 Department Procurement Committee (DPC) ................................................................................. 20
2.4.5 Project Procurement Committee (PPC) ......................................................................................... 20
2.4.6 Regional Procurement Committee (RPC) ...................................................................................... 20
2.4.7 Payments for Members of Procurement Committees (PCs) and Bid Evaluation
Committees (BECs), Staff Officers and Other Officers Assisting in the Procurement Process..... 21
2.4.8 Roles and Responsibilities of Procurement Committees (PCs) and Bid Evaluation
Committees (BECs) ........................................................................................................................ 21
2.5 Authority Limits for determination of Contract Award ......................................................................... 21
CHAPTER 3 - PROCUREMENT METHODS & TYPES ........................................................................ 21

3.1 Procurement Methods ............................................................................................................................ 21
3.1.1 International Competitive Bidding (ICB) ...................................................................................... 22
3.1.2 National Competitive Bidding (NCB) ........................................................................................... 22
3.1.3 Limited International Competitive Bidding (LIB) ......................................................................... 23
3.1.4 Limited National Competitive Bidding (LNB) .............................................................................. 23
3.1.5 Shopping (International & National) ............................................................................................. 23
3.1.6 Direct Contracting .......................................................................................................................... 23

3.1.7 Force Account ................................................................................................................................ 24
3.1.8 Emergency Procurement ................................................................................................................ 24
3.1.9 Community participation in District / Divisional level Construction ............................................ 24
3.2 Repeat Orders ........................................................................................................................................ 25
3.3 Types of Bidding ................................................................................................................................... 25
3.3.1 Single Stage One Envelope Bidding .............................................................................................. 25
3.3.2 Single Stage Two Envelope Bidding.............................................................................................. 25
3.3.3 Multistage Bidding ......................................................................................................................... 26
3.4 Pre-qualification (PQ)/ Initial Selection (IS) of Bidders ....................................................................... 26
CHAPTER 4 - PROCUREMENT PLANNING.......................................................................................... 27

4.1 Procurement Planning ........................................................................................................................... 27
4.1.1 Master Procurement Plan (MPP) ................................................................................................... 27
4.1.2 Procurement Plan (PP) ................................................................................................................... 27
4.1.3 Procurement Time Schedule (PTS) ................................................................................................ 28
4.2 Total Cost Estimate (TCE) .................................................................................................................... 28
4.2.1 Update of Total Cost Estimate (TCE) ............................................................................................ 29
4.3 Packaging and Slicing of Contracts ....................................................................................................... 29
CHAPTER 5 – PROCUREMENT DOCUMENTS .................................................................................... 30

5.1 Preparation of Draft Procurement Documents ...................................................................................... 30
5.2 Contents of Procurement Documents .................................................................................................... 30
5.3 Standard Procurement Documents (SPDs) ............................................................................................ 30
5.4 Request for Bids/Proposals.................................................................................................................... 31
5.5 Instructions to Bidders (ITB)................................................................................................................. 31
5.6 Eligibility of Bidders ............................................................................................................................. 31
5.6.1 Eligibility for Works Contracts ...................................................................................................... 31
5.6.2 Eligibility for Consortia/Joint Ventures ......................................................................................... 31
5.7 Equal Treatment for Foreign and Domestic Bidders ............................................................................. 32
5.8 Bid/Proposal Validity Period ................................................................................................................. 32
5.9 Bid Security ........................................................................................................................................... 32
5.10 Clarity of Procurement Documents ..................................................................................................... 33
5.11 Clarifications and Modifications .......................................................................................................... 33
5.12 Alternative Bids/Proposals or Bid Options/Proposal Options ............................................................. 33
5.13 Value Added Tax .................................................................................................................................. 34
5.14 Bid/Proposal Evaluation Criteria and Qualification Requirements ..................................................... 34
5.15 Conditions of Contract ........................................................................................................................ 34
5.16 Price Adjustment ................................................................................................................................. 34
5.17 Advance Payment ................................................................................................................................ 34
5.18 Retention of Money in Works Contracts ............................................................................................. 35

5.19 Performance Security .......................................................................................................................... 35
5.20 Liquidated Damages ............................................................................................................................ 35
5.21 Dispute Resolution .............................................................................................................................. 35
5.22 The Law of Contract ............................................................................................................................ 35
5.23 Specifications ....................................................................................................................................... 35
5.24 Contract ............................................................................................................................................... 35
CHAPTER 6–PROCUREMENT PROCESS .............................................................................................. 36

6.1 Publication of Request for Bids (RFB)/ Request for Proposal (RFP)/ Specific Procurement
Notice (SPN) ......................................................................................................................................... 36
6.2 Issuance of Procurement Documents .................................................................................................... 36
6.3 Bidding Period ....................................................................................................................................... 36
6.4 Submission/Receipt of Bids/Proposals .................................................................................................. 36
6.5 Rejection of Late Bids/Proposals .......................................................................................................... 36
6.6 Public Bid/Proposal Opening ................................................................................................................ 37
CHAPTER 7 – BID/PROPOSAL EVALUATION ...................................................................................... 37

7.1 General .................................................................................................................................................. 37
7.2 Confidentiality ....................................................................................................................................... 37
7.3 Services of Consultant/s for Evaluation of Bids/Proposals ................................................................... 38
7.4 Time Frame for Bid/Proposal Evaluation .............................................................................................. 38
7.5 Extension of Bid/Proposal Validity ....................................................................................................... 38
7.6 Original Bid/Proposal to be Evaluated .................................................................................................. 38
7.7 Purpose and Stages of Bid/Proposal Evaluation ................................................................................... 38
7.8 Clarifications from Bidders ................................................................................................................... 40
7.9 Unrealistic Bids/Proposals..................................................................................................................... 40
7.10 Negotiations with the Substantially Responsive Lowest Evaluated Bidder ........................................ 40
7.11 Bid Evaluation Report (BER) .............................................................................................................. 41
7.12 Rejection of All Bids/Proposals Received ........................................................................................... 41
7.13 Re invitation of Bids/Proposals ........................................................................................................... 41
CHAPTER 8 - AWARD OF CONTRACT ................................................................................................... 42

8.1 Recommendation/Determination of Contract Award ............................................................................ 42
8.2 Communication to all Bidders of the Intention to Award Contract ....................................................... 42
8.3 Debriefing .............................................................................................................................................. 42
8.4 Standstill Period..................................................................................................................................... 43
8.5 Appeals against Contract Awards recommended by the CAPC/SCAPC/MPC/DPC/PPC
and RPC ................................................................................................................................................. 43
8.5.1 Appointment of Procurement Appeal Boards (PABs), Reporting and Operational
Responsibilities and Payments for PAB Members ......................................................................... 43
8.5.2 PABs for Cabinet level Procurements related to SCAPC, CAPC and CANC ............................... 44
8.5.3 MPABs for Ministry level Procurements related to MPC.............................................................. 44
8.5.4 DPAB/PPAB for Department/Project level Procurements related to DPC/PPC ............................ 45
8.5.5 RPABs for Regional level Procurements related to RPC ............................................................... 45
8.5.6 Payments for Members of Procurement Appeal Boards (PABs) and Staff Officers and
Other Officers Assisting in the Procurement Appeal Process ........................................................ 45
8.6 Award of Contract .................................................................................................................................. 45
8.7 Formal Contract ..................................................................................................................................... 46
8.8 Publication of Contract Award............................................................................................................... 46
CHAPTER 9 - CONTRACT ADMINISTRATION .................................................................................... 46

9.1 Contract Administration ........................................................................................................................ 46
9.2 Change Requests /Variations ................................................................................................................. 46
9.3 Extension of Time.................................................................................................................................. 46
9.4 Debarment or Blacklisting of Defaulted Bidders/Contractors/Suppliers .............................................. 47
CHAPTER 10 – PROCUREMENT OF ESSENTIAL REQUIREMENTS .............................................. 47

10.1 Procurement of Essential Requirements .............................................................................................. 47
10.2 Procurement of Spare Parts ................................................................................................................. 48
10.3 Repairs to Motor Vehicles and Equipment .......................................................................................... 48
10.4 Periodicals and Publications ................................................................................................................ 48
10.5 Purchasing of Fuel ............................................................................................................................... 48
10.6 Procurement of Pharmaceuticals and Medical Equipment .................................................................. 48
CHAPTER 11 – PROCUREMENT OF INFORMATION SYSTEMS (IS) ............................................. 49

11.1 Information System (IS) Procurement ................................................................................................. 49
11.2 Procurement Documents to be Used.................................................................................................... 49
11.2.1 Straightforward IS Procurements ................................................................................................. 49
11.2.2 Complex Supply and Installation and Complex System Engineering Procurements .................. 49
11.2.3 IS Consulting Services ................................................................................................................. 49
11.2.4 Pre-qualification (PQ)/Initial Selection ........................................................................................ 49
CHAPTER 12 – FRAMEWORK AGREEMENT ...................................................................................... 50

12.1 Introduction ......................................................................................................................................... 50
12.2 Features of Framework Agreement ..................................................................................................... 50
12.3 Responsibility for Management of Framework Agreement ................................................................ 51
12.4 Procedural and Implementation Arrangements ................................................................................... 51
12.5 Procurement Management ................................................................................................................... 51
CHAPTER 13 – e-GOVERNMENT PROCUREMENT (e-GP) ............................................................... 51

13.1 Introduction ......................................................................................................................................... 51
13.2 Implementation Process of e-GP at the PEs ........................................................................................ 52
13.3 Fully fledged e-GP system to be implemented by the PEs .................................................................. 52
13.4 Good Governance in Public Procurement: Key to e-GP ..................................................................... 52

13.5 e-GP System Access ............................................................................................................................ 53
13.6 Procurement Plan................................................................................................................................. 54
13.7 Bidder Registration .............................................................................................................................. 54
13.8 PE’s Requisition .................................................................................................................................. 54
13.9 e-Advertising ....................................................................................................................................... 54
13.10 Procurement Documents ................................................................................................................... 54
13.11 Correspondence, Clarifications, and Amendments ............................................................................ 54
13.12 Pre-Bid Conference ........................................................................................................................... 55
13.13 Amendments to the Procurement Document ..................................................................................... 55
13.14 Submission of e-Bids/Proposals ........................................................................................................ 55
13.15 Bid Securities and Performance Securities........................................................................................ 56
13.16 Public Opening of e-Bids/Proposals .................................................................................................. 56
13.17 Evaluation of e-Bids/e-Proposals ...................................................................................................... 56
13.18 Publication of Contract Awards ......................................................................................................... 56
13.19 Notification of Contract Award (NOA) Intention letter..................................................................... 57
13.20 Contract Negotiation ......................................................................................................................... 57
13.21 Contract Management ....................................................................................................................... 57
13.22 Payments for Procurement Documents ............................................................................................. 57
13.23 Records Management System ........................................................................................................... 58
13.24 Authentication.................................................................................................................................... 58
13.25 Information Security Management (ISM) ......................................................................................... 58
13.26 Electronic Procurement Models ........................................................................................................ 58
13.27 Applicability of the e-procurement Guidelines and Manuals ............................................................ 59
CHAPTER 14 – OPEN CONTRACTING DATA STANDARD (OCDS) ................................................. 59

14.1 Introduction ......................................................................................................................................... 59
14.2 Standard ............................................................................................................................................... 60
CHAPTER 15 – GREEN PUBLIC PROCUREMENT .............................................................................. 60

15.1 Introduction to Green Public Procurement .......................................................................................... 60
15.1.1 Green Public Procurement Policy ................................................................................................ 61
15.2 Guiding Principles of GPP................................................................................................................... 61
15.3 Introducing GPP Strategy ................................................................................................................... 62
15.4 Role play by the Ministry of Environment .......................................................................................... 62
15.5 Introducing Green Specifications for Commonly Used Items ............................................................ 63
15.6 Inclusion of Green Public Procurement criteria in Procurement Documents ..................................... 63
15.7 Evaluation of Bids/Proposals with Green Criteria .............................................................................. 63
15.8 Annual Report on Green Product Purchase ......................................................................................... 64
15.9 Cost Implication .................................................................................................................................. 64
CHAPTER 16 – PUBLIC PRIVATE PARTNERSHIPS (PPP) ................................................................. 64

16.1 Public Private Partnerships (PPP) ....................................................................................................... 64
DEFINITIONS
Unless the context otherwise requires the terms whenever used in these Guidelines have the following meanings:
Action Plan Means a medium term or a long-term work plan of the

institution which is based on the corporate plan.
Bid or Quotation An offer, by a firm, joint venture, or any other party, or parties
in response to a Request for Bids, to provide the required
Goods, Works, Services and Information Systems.
Call-Off Contract Means individual contract concluded between procuring

entity and supplier according to the terms and conditions
established in the framework agreement and to which may
be annexed the additional special terms that have not been
dealt within the framework agreement determining in detail
Goods, Works, or Services to be supplied by the supplier. A
Call-off Contract is a contract that is binding on both parties.
The signed purchase order incorporates the Call-off terms and
conditions and forms the Call-off Contract.
Effective Date Effective Date is the date on which these Guidelines will
become effective replacing all Procurement Guidelines, Cir-
culars and Directives as prevalent on that date. The Effective
Date shall be a date not later than 30 days after receipt of
Parliamentary approval for these Guidelines.
e-GP Means the use of electronic platform for carrying out public
procurement for value for money, for enhancing good gover-
nance and fostering socio-economic development.
Foreign Funding Means any multi-lateral or bi-lateral agency which has entered
Agency or intends to enter into an agreement with the Government of
Sri Lanka for financing the Government.
Foreign Funded Means a project fully or partly financed by a Foreign Funding

Project Agency.
Framework Means an agreement with one or more firms that establishes

Agreement the terms and conditions that will govern any contract awarded
during the term of the FWA (a Call-Off Contract).
Fraud & Corruption Means sanctionable practices of corruption, fraud, collusion,

coercion and obstruction.
Procurement Guidelines Means Guidelines for procurement of Goods, Works, Services

and Information Systems.
Goods
Means all commodities, raw materials, products, plant &
machinery, equipment, Livestock, and other physical objects
of every description, whether in solid, liquid, gaseous or
living form.
Government Includes a Ministry, a Government Department, a Public

Institution Corporation, a Local Authority, any Business or other under-
taking vested in the Government and a Company registered
or deemed to be registered under the Companies Act, No.7 of
2007 in which the Government, a public corporation or any
local authority holds more than 50% of the shares.
Green Public Procurement Means a Public Procurement, which integrates environmental

considerations in the Public Procurement process and takes
into the consideration the entire life cycle of the product or
service.
Information System Means all the information technologies, materials, and other
Goods of the supplier’s equipment, together with the Services
to be carried out by the supplier under the contract.
Information Means all information processing and communications-relat-

Technologies ed hardware, software, supplies, and consumable items that
the supplier is required to supply and install under the contract.
In Writing
Means communicated or recorded in written form. It includes,
for example: mail, e-mail, fax or communication through an
electronic procurement system (provided that the electronic
system is accessible, secure, ensures integrity and confiden-
tiality, and has sufficient audit trail features).
Master Procurement Means a document prepared by the Procurement Entity, listing

Plan all procurements envisaged to be carried out during a period
of three years in medium term budgeting perspective, with
tentative dates for carry out such procurements.
Open Contracting Data The Open Contracting Data Standard (OCDS) enables dis-
Standard (OCDS) closure of data and documents at all stages of the contract-
ing process by defining a common data model.
Public Procurement Means the obtaining of Goods, Works, Services and Infor-
mation Systems by Procuring Entities through the most ap-
propriate means, with public funds or funds from any other
source whether local or foreign received by way of loans,
grants, gifts, donations, contributions and similar receipts. It
would include purchase, rental, lease or hire purchase, includ-
ing services incidental to the provision of the said Goods or
Services or the execution of the Works and disposal of assets
for which there is no legal provisions.
Procurement
Action Means any action in furtherance of procurement of Goods,
Works, Services and Information Systems.
Procurement All documents related to the procurement process including

Documents General Procurement Notice (GPN), Special Procurement
Notice (SPN), Requests for Bids (RFB), Procurement Doc-
uments, Addenda, Contract Forms, Expression of Interest
(EOI), Request for Quotation (RFQ), Request for Proposal
(RFP), and the other forms of different documents used for
procurements of Goods, Works, Services and Information
Systems, other than Consulting Services.
Procuring Entity Means a Government Institution, which the particular pro-

curement is meant for.
Procurement Manual The Procurement Manual is the detailed operational guidance

on procurement policies and procedures for all the stakehold-
ers involved in the various stages of Procurement Actions
conducted under the Government Procurement Guidelines
of Sri Lanka.
Procurement Plan Is a subset of the Master Procurement Plan which lists out the
procurements planned to be carried out during a particular
financial year, with emphasis to available budgetary
provisions with planned target dates for completion of critical
milestones pertaining to each procurement.
Procurement Process The Process that commences with identification of need and
continues through planning, preparation of specification
functional requirements, selection of contract award, contract
management and completion of the contract.
Procurement Time Schedule Means document prepared by the PE depicting specific dates
from the Procurement Plan for accomplishment of each
Procurement Activity under a particular procurement and
approved by the PC.
Services Means any services such as electricity, water supply, cleaning,

security, cargo clearance, and other utility services of every
description other than Consulting Services.
Works A category of procurement that refers to divisional construc-

tion, decoration, repair, retrofitting, refurbishment, renova-
tion, rehabilitation, demolition, restoration, maintenance of
buildings, infrastructure, civil works structures and other
associated activities.
ACRONYMS
AO - Accounting Officer
BEC - Bid Evaluation Committee
BOQ - Bill of Quantities
B/POC - Bid / Proposal Opening Committee
CAO - Chief Accounting Officer
CAPC - Cabinet Appointed Procurement Committee
CBO - Community Based Organization
CCC - Change Control Committee
CIDA - Construction Industry Development Authority
DPC - Departmental Procurement Committee
ECP - Estimated Cost of the Procurement
e-GP - e-Government Procurement
FWA - Framework Agreement
FFA - Foreign Funding Agency
FFP - Foreign Funded Project
GOSL - Government of Sri Lanka
GPP - Green Public Procurement
GPN - General Procurement Notice
HD - Head of Department
ICB - International Competitive Bidding
LKR - Sri Lanka Rupees
MPC - Ministry Procurement Committee

MPP - Master Procurement Plan
NCB - National Competitive Bidding
NPC - National Procurement Commission
OCDS - Open Contracting Data Standard
OD - Operational Directives
PC - Procurement Committee
PE - Procuring Entity
PFD - Public Finance Department
PGL - Procurement Guidelines
PP - Procurement Plan
PPP - Public Private Partnership
PTS - Procurement Time Schedule
RFB - Request for Bids
RFP - Request for Proposal
RFQ - Request for Quotations
RPC - Regional Procurement Committee
SCAPC - Standing Cabinet Appointed Procurement Committee
SPD - Standard Procurement Document
SPN - Special Procurement Notice
TCE - Total Cost Estimate
VAT - Value Added Tax

CHAPTER 1–GENERAL
1.1 Purpose
The purpose of these Guidelines is to establish governing principles and procedures to ensure
Value for Money (VfM), in an efficient, fair, equitable, transparent, competitive and cost-effective
procurement process by the Government Institutions for procurement of Goods, Works, Services
and Information Systems.
Refer
1.2 Objectives Manual
1.2
The Procurement Process should ensure:
(a) maximizing economy, timeliness and quality;
(b) optimum utilization of budgetary resources;
(c) adhering to prescribed standards, specifications, rules, regulations and good governance;
(d) transparency and accountability in Public Procurement;
(e) providing fair, equal and maximum opportunity for eligible interested parties to participate
in procurement;
(f) expeditious execution of Works and delivery of Goods, completion of Information Systems
& provision of Services;
(g) compliance with laws, regulations and international obligations;
(h) introducing e-Government Procurement (e-GP) for public-sector procurements;
(i) promote human wellbeing and support sustainable development by promoting

environmental friendly procurement, while optimizing resource utilization and minimizing
negative impacts on the environment;
(j) promote transparency by regularly publishing procurement data in accordance with the
Open Contracting Data Standard (OCDS);
(k) enhancing stakeholders trust and confidence in the entire procurement process;
(l) maintaining consistency in application of unique procedures across Procuring Entities.

1.3 Scope of Application Refer

Manual
1.3
These Guidelines constitute the national policy and are mandatory and applicable to all procurements
carried out by Government Institutions.
These Guidelines repeal, replace or otherwise supersede previous Procurement Guidelines 2006
Goods and Works issued by the National Procurement Agency and the related supplements and
circulars issued by NPA and Treasury.
These Guidelines will take effect and come into operations on a date as specified by the NPC
(Effective Date) which shall be within 30 days after the approval of these Guidelines by the
Parliament.
Any Procurement Action that has commenced prior to coming into operation of these Guidelines
shall continue under the previous Procurement Guidelines 2006 Goods and Works up to the award
of the contract.
Commencement, for purposes of this clause, will be the publication of Invitation/Request for
Bids. Notwithstanding the above, these Guidelines will apply for any matter not provided for in
the previous Guidelines. Procurement Entity may seek a direction from the NPC in the event a
clarification is necessary.
Details such as procedures, authority limits, threshold limits, explanations, time schedules etc.
which are relevant to provisions of these Guidelines are stipulated in the Procurement Manual
and shall be read in conjunction with these Guidelines. The Manual will be issued and updated
periodically by the NPC.
1.3.1 Guidelines of Foreign Funding Agencies
In the case of Foreign Funded Projects, if the Foreign Funding Agency mandates the use
of Procurement Regulations/Guidelines of such Funding Agency, such funding agency
Regulations/Guidelines shall prevail over these Guidelines to the extent applicable. In the
event of a conflict between these Guidelines and that of the funding agency, the Funding
agency Regulations/Guidelines shall take precedence over these Guidelines. In the event
these Guidelines specify additional steps, not specified by the Guidelines of the relevant
funding agency, the PE shall bring to the notice of the Funding Agency of those and apply
those provisions with the concurrence of that Funding Agency.
Notwithstanding the above, the PE shall not apply Guidelines of any Funding Agency, if
the funding is loan/credit financing, where substantial achievement of the objectives as
specified in Clause 1.2 above is not feasible.
1.4 Ethics in Procurement
Parties associated with Procurement Process including officials of the NPC, the Treasury, Procur-
ing Entity, members of the Procurement Committees, and Bid Evaluation Committees as well as
bidders, contractors and suppliers; any sub-contractors, service providers; any agents; consultants
and any of their personnel should observe the highest standards of ethics during the Procurement
Process and execution of such contracts.
Ethics would include standards of conduct and norms of behaviour as sought to be defined and
imposed by relevant laws, regulations, and codes generally applicable to such persons in relation
to their general discharge of duties and in relation to their activities carried out in furtherance of or
linked to the Procurement Process and action.
1.4.1 Confidentiality
All parties associated with procurement activities shall maintain strict confidentiality
throughout the process except to the extent as may be mandated by law.
Refer
1.4.2 Fraud and Corruption Manual
1.4.2
The GOSL requires that policy and decision makers, officials, bidders, contractors and
suppliers; any sub-contractors, service providers; any agents; and any of their personnel
observe the highest standards of ethics during the Procurement Process and contract exe-
cution and refrain from corrupt, fraudulent, collusive, coercive and obstructive practices
in participating in the Procurement Process.
For this provision, the terms set forth below are as follows:
(a) Corrupt Practice
“Corrupt Practice” means the offering, giving, receiving, or soliciting, directly or indirectly,
anything of value to influence improperly the actions of another party;
(b) Fraudulent Practice
“Fraudulent Practice” means any act or omission, including a misrepresentation, that

knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or
other benefit or to avoid an obligation;
(c) Collusive Practice
“Collusive Practice” means an arrangement between two or more parties designed to

achieve an improper purpose, including influencing improperly the actions of another party.
Improper purpose would include any attempt to influence competition and/or the price.
d) Coercive Practice
“Coercive Practice” means impairing or harming, or threatening to impair or harm, directly

or indirectly, any party or the property of the party to influence improperly the actions of
a party;
e) Obstructive Practice
“Obstructive Practice” means deliberately destroying, falsifying, altering, amending
or concealing of evidence materials to the investigation or making false statements to
investigators / auditors in order to materially impede an investigation / audit into allegation
of a corrupt, fraudulent, collusive or coercive practice; and/or threatening, harassing or
intimidating any party to prevent it from disclosing its knowledge of matters relevant to
the investigation/audit.
Refer
Manual
1.4.3 Sanctions for Involvement in Fraud and Corruption
1.4.3 and
9.4
If confirmed the involvement of corrupt practices through a formal inquiry, sanctions,

including debarring from that procurement or eligibility for future procurements should
be imposed on bidders, contractors and officials and should additionally be reported to
the respective authorities for appropriate action.
Refer
1.4.4 Conflict of Interest Manual
1.4.4
“Conflict of Interest” means any situation where personal or business interests of any person
in a Public Procurement transaction would adversely affect the interests of a Procuring
Entity in achieving economy, efficiency, effectiveness, transparency, fairness, integrity
and equal treatment of bidders or consultants.
The GOSL requires that officials, firms and any other individuals involved in Procurement
Process not have conflict of interest.
1.5 Laws applicable to Procurement Actions
The laws applicable to Procurement Actions shall be the laws of the Democratic Socialist Republic
of Sri Lanka.
CHAPTER 2 - GOVERNANCE OF PROCUREMENT ACTIONS

The governance of Procurement Actions shall be managed by the Procuring Entities through clear and transparent lines of
authority to confirm accountability, with clear definitions of the roles and responsibilities of each party.
Refer
2.1 National Procurement Commission (NPC) Manual
2.1
The National Procurement Commission (NPC) as established under the Chapter XIX B of the
Constitution of Democratic Socialist Republic of Sri Lanka is the sole authority for the governance
of all procurement activities by the Government Institutions of GOSL to whom these Guidelines
apply. Any clarifications on the provisions of these Procurement Guidelines and related documents
shall be sought from the NPC.
Refer
2.1.1 Role of the NPC Manual
2.1.1
Role of the NPC is to ensure formulation of procurement policy, Guidelines, practices,

monitoring and investigation of Procurement Actions of Procuring Entities to guarantee
implementation of such policies, Guidelines and best practices by Government
Institutions, assessment of procurement capacity of Government Institutions, procurement
capacity building and reporting to appropriate authorities on procurement performance
of Procuring Entities and individuals.
Refer
2.2 Roles and Responsibilities of Chief Accounting Officer and Accounting
Manual
Officer (CAO and AO)
2.2
Responsibility of the entire Procurement Process from making pre-procurement arrangements to

contract execution shall be vested with the Secretaries of the respective Line Ministries, who are
deemed to be the Chief Accounting Officers (CAOs) of such Ministries and the Accounting Officers
(AOs) of respective Departments /Institutions.
Refer
2.3 Roles and Responsibilities of Procuring Entity (PE) Manual
2.3
Secretaries to the Line Ministries, Heads of Departments /Institutions and Project Directors together
with the assistance of the consultants and other relevant staff who are involved in procurement
decision making shall be responsible for the following activities listed under:
1.Pre-Procurement Process
2.Procurement Process
3.Post Procurement Process
Refer
2.4 Appointment of Procurement Committees (PCs) and Bid Evaluation
Manual
Committees (BECs) and Payments for PC and BEC Members
2.4
PC and BEC are jointly and severally responsible for Procurement Actions. There shall be
Procurement Committees to handle Procurement Process for determination of contract award and
Bid Evaluation Committees (BECs) shall be appointed to perform specific functions delegated by
the Procurement Committees in the Procurement Process as appropriate.
The following PCs shall be appointed as per the respective authority limits as specified under
Guideline 2.5 from time to time:
 Cabinet Appointed Procurement Committee (CAPC)

 Standing Cabinet Appointed Procurement Committee (SCAPC)
 Ministry Procurement Committee (MPC)
 Department Procurement Committee (DPC)
 Project Procurement Committee (PPC)
 Regional Procurement Committee (RPC)
Apart from above, CAO’s are permitted to appoint Minor Procurement Committees to deal with
low value procurements.
Refer
2.4.1 Cabinet Appointed Procurement Committee (CAPC) Manual
2.4.1
CAPC shall be the PC, which shall be authorized to handle procurements under highest
financial authority level that shall be appointed by the Secretary to the Treasury, with
the concurrence of the NPC for the suitability of such members.
CAPC shall be assisted by a BEC appointed by the Secretary to Treasury, considering

the nominations of the PE.
The appointing authority should take all possible efforts to limit the number of CAPCs
that will be assigned to a particular CAPC member does not exceed six (6) CAPCs.
Refer
2.4.2 Standing Cabinet Appointed Procurement Committee (SCAPC) Manual
2.4.2
SCAPC may be appointed by the Secretary to the Treasury, considering the exceptional
nature of procurement, with the concurrence of the NPC for the necessity of appointing
a SCAPC to handle the particular procurement.
Members of the SCAPC shall be cleared by the NPC for their suitability.
BECs to assist SCAPCs shall be appointed by the Secretary to the Treasury, considering
the nominations of the PE.
Refer
2.4.3 Ministry Procurement Committee (MPC) Manual
2.4.3
MPC shall be appointed to handle procurement within prescribed financial authority
limits and appointing authority is the CAO/Line Ministry Secretary.
MPCs shall be appointed annually at the beginning of the financial year.
However, MPCs may be reconstituted within the financial year depending on the specific
requirement of the particular procurement.
BECs may be appointed by the CAO/Line Ministry Secretary to assist the MPC,
considering its requirement.
When the MPC is not assisted by a BEC, MPC shall be enhanced to accommodate
subject matter specialists.
Refer
2.4.4 Department Procurement Committee (DPC) Manual
2.4.4
DPC shall be appointed to handle procurement within prescribed financial authority
limits and appointing authority is the CAO/Secretary to the Line Ministry.
BECs may be appointed by the AO to assist the DPC, considering the requirement.
When the DPC is not assisted by a BEC, DPC shall be enhanced to accommodate subject
matter specialists in the DPC.
Refer
2.4.5 Project Procurement Committee (PPC) Manual
2.4.5
PPCs shall be appointed to handle procurement within prescribed authority limits and
the appointing authority is the CAO/Secretary to the Line Ministry or AO, as may be
the project is under the supervision.
BECs may be appointed by the PD with concurrence of CAO/AO to assist the PPC,
considering the requirement.
PPCs under public corporations, boards and statutory bodies shall be appointed, with
the specific approval of the CAO/Secretary to the Line Ministry.
Refer
2.4.6 Regional Procurement Committee (RPC) Manual
2.4.6
RPC shall be appointed to handle procurement within prescribed financial authority
limits and the appointing authority is the AO.
BECs may be appointed by the AO to assist the RPC, considering the requirement.
RPCs under public corporations, boards and statutory bodies shall be appointed, with
the specific approval of the AO.
2.4.7 Payments for Members of Procurement Committees (PCs) and Bid Refer
Evaluation Committees (BECs), Staff Officers and Other Officers Manual
Assisting in the Procurement Process 2.4.7
Members of the PCs, BECs and alternate members shall be remunerated for participation
in the Procurement Process. The members of the PCs and BECs and the official who
specific responsibilities are assigned under these Guidelines shall be remunerated, with
emphasis to their performance.
Payment of remunerations shall be based on performance of such committees and
individuals and the eligible payments shall be determined by the NPC, in consultation
with the General Treasury.
Roles and Responsibilities of Procurement Committees (PCs) and Bid Refer

2.4.8 Manual
Evaluation Committees (BECs) 2.4.8
PCs and BECs are jointly and severally responsible for Procurement Actions related to
determination of award in the Procurement Process.
Refer
2.5 Authority Limits for determination of Contract Award Manual
2.5
Public Procurement is administered through different levels of Procurement Committees (PC) with
varying financial thresholds to make recommendation/determination of contract awards.
Procurement Committees/Bid Evaluation Committees shall be appointed depending on the Total
Cost Estimate (TCE) of the relevant procurement.
CHAPTER 3 - PROCUREMENT METHODS & TYPES

Open competitive bidding is the basis for economical and efficient Public Procurement. Depending on the nature and size
of the project and its procurement elements, PE may use appropriate procurement methods out of the following to procure
Goods, Works, Services and Information Systems.
Refer
3.1 Procurement Methods Manual
3.1
1. International Competitive Bidding (ICB)
2. National Competitive Bidding (NCB)
3. Limited International Bidding (LIB)
4. Limited National Bidding (LNB)
5. Shopping (International & National)
6. Direct Contracting
7. Force Account
8. Emergency Procurement
9. Community Participation in District/Divisional Level Construction
Refer
3.1.1 International Competitive Bidding (ICB) Manual
3.1.1
International Competitive Bidding (ICB) may be the appropriate method of procurement
for large contracts. The purpose of ICB is to provide a level playing field for all prospective
qualified bidders worldwide under the following circumstances in order that the PE will
reap the ultimate benefit from enhanced market competition. Bidding opportunities must
therefore be advertised worldwide to ensure maximum participation and value for money.
a) when the capacity of the domestic contractors, suppliers and service providers
are limited and the advantage of ICB is evident;
b) for Foreign Funded Projects, when the Foreign Funding Agency agreement
requires the PE to resort to ICB procedures;
However, in the case of Works contracts in view of the development of domestic construc-
tion industry, the possibility of slicing the contract and following “slice and package” to
suit domestic contractors may be considered.
Local entities are also allowed to bid/proposals for procurements under ICB.
Domestic preference criteria stipulated shall be used wherever applicable.
All other conditions including currencies, taxes and other statutory levies except domestic
preference shall be applicable equally to foreign and domestic bidders.
Refer
3.1.2 National Competitive Bidding (NCB) Manual
3.1.2
National Competitive Bidding (NCB) is the competitive bidding procedure that shall be
generally applicable for most GOSL funded projects when the Goods, Works, Services
and Information Systems are available within Sri Lanka.
Foreign entities may bid for procurements under NCB method provided the prices are
quoted in Sri Lanka Rupees.
NCB in foreign funded projects shall be used with the agreement of the Foreign Funding
Agency as articulated in the respective financing agreement.
Refer
3.1.3 Limited International Competitive Bidding (LIB) Manual
3.1.3
LIB is a procurement method which allows international procurements under a restricted
and competitive environment.
This method shall be used when there is only a limited number of suppliers/contractors
or the amount of the contract is not large enough to attract suppliers or contractors
through ICB, provided that the list of potential suppliers/contractors is sufficient to ensure
competitiveness.
In the case of Limited International Competitive Bidding (LIB), all procedures followed
under ICB shall apply except the requirement for advertising.
Refer
3.1.4 Limited National Competitive Bidding (LNB) Manual
3.1.4
This method shall be used when there is only a limited number of suppliers/contractors or
the amount of the contract is not large enough to attract suppliers or contractors through
NCB, provided that the list of potential suppliers/contractors is sufficient to ensure
competitiveness.
In the case of Limited National Competitive Bidding (LNB), all procedures followed under
NCB shall apply except the requirement for advertising.
Refer
3.1.5 Shopping (International & National) Manual
3.1.5
Shopping is a limited procurement method that can be used by the PE when purchasing
small value Goods, Works, Services and Information Systems mentioned below, comparing
price quotations received from at least three (3) reputed/registered bidders.
i. Commercially available Off the Shelf Goods (COTS);
ii. Commodities for which specifications are standard; or
iii. Small value Goods, Works, Services and Information Systems.
Refer
3.1.6 Direct Contracting Manual
3.1.6
Direct contracting is contracting with a single source without competition and may be an
appropriate method under special circumstances as stated below.
a) additional items are required under an existing contract (repeat order) which
was awarded in accordance with competitive procedures considered under this
Guideline. PEs shall be satisfied in such cases that no better offer is likely to be
received and that the price to be paid is not more than the original price. Usu-
ally, the repeat order shall occur within 6 months of the original contract, with
the additional quantities not exceeding fifty percentum (50%) of the original
quantities.
b) standardization of equipment or spare parts compatible with existing equipment

may justify additional purchases from the original supplier. For such purchases
to be justified, the original equipment shall be suitable, the number of new items
shall be less than the existing number and the price shall be reasonable.
c) the required equipment is proprietary and obtainable only from one source.
d) in exceptional cases, such as in response to natural disasters.
e) no Government Institution will qualify for automatic direct contract award.
3.1.7 Force Account

Force account is the execution of works by the use of the PE’s own personnel and equipment
which may be the only practical method for executing certain kinds of Works. The use of
force account may be justified where:
a) quantities of work involved cannot be defined in advance;
b) Works are small and scattered or in remote locations for which qualified con-
struction firms are unlikely to bid at reasonable prices;
c) Work is required to be carried out without disrupting ongoing operations;
d) risks of unavoidable work interruption are better borne by the employer than by
a contractor; or
e) there are emergencies needing immediate attention.
Refer
3.1.8 Emergency Procurement Manual
3.1.8
PE may use this method in exceptional circumstances, such as man-made or natural disasters
or to meet unforeseen social obligations and such other similar situations which shall be
determined by the Government authorities as being an emergency situation.
A formal covering approval for any emergency procurement shall be obtained from the
appropriate PC at the first available opportunity.
Refer
3.1.9 Community participation in District / Divisional level Construction Manual
3.1.9
In the interest of project sustainability, or to achieve certain specific social objectives,

such as creating employment opportunities in an identified area, it is desirable to call for
the participation of local Community Based Organisations (CBOs) in the Procurement
Process provided that such CBO is capable to undertaking such work in terms of financial,
equipment and human resource requirements and has sufficient experience in the relevant
field. Sub-contracting by the CBO shall not be allowed under any circumstances.
Refer
3.2 Repeat Orders Manual
3.2
Repeat orders for the procurement of Goods may be authorized under exceptional circumstances
if the PE certifies that;
a) the necessity for additional requirement was not foreseen and identified at the time of the
original order;
b) it is not economical to follow the bidding procedure again;
c) price of the Goods have not reduced since the original order; and
d) appropriate PC has no objection to such repeat order.
Provided that additional items that are required are under an existing contract originally awarded
in accordance with competitive procedures.
Notwithstanding the above, PEs shall be satisfied in cases that no better offer is likely to be received
and that the price to be paid is not more than the original price.
Usually, the repeat order shall occur within 6 months of the original contract, with the additional
quantities not exceeding 50% of the original quantities.
Refer
3.3 Types of Bidding Manual
3.3
Types of bidding, with or without pre-qualification/initial selection

1. Single Stage One Envelope
2. Single Stage Two Envelope
3. Multistage Bidding
Refer
3.3.1 Single Stage One Envelope Bidding Manual
3.3.1
Single Stage One Envelope bidding is most appropriate when the specifications and
requirements are uniquely defined to enable submissions of both technical and financial
bids/proposals in one envelope.
Refer
3.3.2 Single Stage Two Envelope Bidding Manual
3.3.2
The first envelope contains the qualification and technical part and second envelop contains
the financial part (price bid/proposal). The two envelopes are opened and evaluated
sequentially. The main objective of this type is to evaluate the technical proposal and
capacity of the bidders without influence of the price quoted for moderate technically
complex works and supplies.
Two envelope system may be used in circumstances such as “turnkey”, “design and build”,
Information Systems and “supply and installation” contracts etc.
Refer
3.3.3 Multi - stage Bidding Manual
3.3.3
It may be impractical to prepare complete technical specifications in advance for the

procurement of:
a) large complex facilities for which a turnkey contract will be awarded for the
design and build of a plant;
b) Works of a complex and special nature; or
c) complex information and communication technology that is subject to rapid

technological advances.
In the first stage, proposals are invited on the basis of a conceptual design or performance
or functional specifications, subject to the PEs conducting proposal specific documented
understanding meetings with individual proponents to learn about and discuss possible
solutions.
In the second stage, the request for proposals document may be amended to reflect the
discoveries made in the proposal specific documented understanding meeting, and issued
to the qualified proponents, requesting them to submit final proposals. As requested in the
request for proposals document, the second stage shall be submitted in two (2) envelopes
for the technical and financial parts respectively where two envelopes are opened and
evaluated sequentially.
Refer
3.4 Pre-qualification (PQ)/ Initial Selection (IS) of Bidders Manual
3.4
The purpose of PQ/IS of bidders is to ensure invitations to bid are extended only to those who have
adequate capabilities; with respect to construction or manufacturing facilities or supply of Goods,
Services, or supply and installation of Information Systems; and their financial position, experience
and past performance on similar contracts is satisfactory.
In this context, PQ may be necessary for large complex Works or in circumstances which could
discourage competition due to high cost of preparation of detailed bids/proposals such as; Custom-
designed equipment, industrial plants, specialized services, contracts to be let under design and
build, management contracting, or complex Information Systems.
CHAPTER 4 - PROCUREMENT PLANNING

Efficient and realistic planning of the entire Procurement Process is vital to ensure timely completion of the procurement cycle.
Refer
4.1 Procurement Planning Manual
4.1
Every Procuring Entity (PE) shall be responsible to plan their individual procurements, other
than emergency procurements, in advance and shall prepare following plans.
1. Master Procurement Plan (MPP)

2. Procurement Plan (PP)
3. Procurement Time Schedule (PTS)
Refer
4.1.1 Master Procurement Plan (MPP) Manual
4.1.1
Every (PE) should prepare a Master Procurement Plan for a period of three year in medium
term budgetary perspective and should be compiled at the Ministry level.
a) Individual procurements envisaged for a period of three years shall be listed in
the Master Procurement Plan. (MPP)
b) MPP shall be reviewed annually, at the commencement of respective financial
year, and shall be approved by the Secretary to the Line Ministry.
c) MPP shall be disclosed as per the regulations made under the Right to Information
Act, No. 12 of 2016.
Refer
4.1.2 Procurement Plan (PP) Manual
4.1.2
a) PE shall prepare a Procurement Plan (PP) in accordance with Master Procurement
Plan (MPP) and previously approved Action Plan, depicting procurement that shall
be carried out during the respective financial year.
b) PP shall be more specific and list the procurement activities of the current year in
accordance with the budgetary provisions and approved by the Secretary to the Line
Ministry. PE shall send a true copy of the approved PP to NPC.
c) After preparation of the Procurement Plan the PE shall publish the General Procurement
Notice (GPN) indicating the details of the procurements planned for the respective
financial year. GPN shall be published in the websites of the PE, relevant line ministry
and NPC.
d) PP is a management tool and shall be disclosed as per the regulations made under the
Right to Information Act, No. 12 of 2016.
PP shall be updated as and when necessary considering actual performance. MPP and
Action Plan also may be amended accordingly, if required.
PE shall send an updated PP to NPC within 30 calendar days of the update.
Refer
4.1.3 Procurement Time Schedule (PTS) Manual
4.1.3
a) Procurement Time Schedule (PTS) is a schedule describing each Procurement Action,

in chronological order, from commencement to completion of the Procurement Process
up to the award of contract.
b) PTS shall be prepared by the PE in two stages;
Stage 1 - all activities from the commencement up to the preparation of draft procurement
documents;
Stage 2 - all activities after preparation of the draft Procurement Document consequent to
obtaining the required budgetary provisions.
c) Regular update of PTS Stage 1 shall be done by the PE.
d) The PE shall forward the draft PTS for Stage 2 on the procurement activity concerned,
together with any connected downstream procurement to the PC. It is an obligation
of the respective PC to consider the PTS Stage 2 and approve it at the first meeting.
Once the PTS is agreed upon, the PC shall monitor the progress in consultation with
the PE.
Refer
4.2 Total Cost Estimate (TCE) Manual
4.2
TCE is an aggregation of elemental costs of a procurement to be conducted including VAT which

will be shown separately.
The elemental costs means itemized costs of the pre-procurement, procurement and post- procure-
ment costs.
TCE shall be prepared by the PE and approved by respective approving authority, prior to request
for bids/proposals.
Refer
4.2.1 Update of Total Cost Estimate (TCE) Manual
4.2.1
Wherever it is necessary to update the TCE, the updated TCE shall be approved by the
appropriate authority. The approving authority should refrain from revising the TCE during
the Procurement Process after the request for bids/proposals.
Refer
4.3 Packaging and Slicing of Contracts Manual
4.3
The size and the complexity of the contract are important considerations for packaging and slicing.
Bids/proposals may be requested;
a) In order to facilitate large and small contractors to participate, procurement may be divided
into smaller slices and procured on “Slice and/or Package” basis.
b) Both small and large contractors may be allowed, at their options, to bid for one or more
packages.
c) In case of e-GP, lots will be treated as a stand-alone procurement packages and procured
accordingly.
All bids/proposals shall be received by the same closing date and opened and evaluated simulta-
neously so as to determine the bid/proposal or combination of bids/proposals.
Procurements carried out through e-GP system shall be automatically closed and locked from
access to anyone at the time and date of closing and bidders shall not be allowed to submit any
bids/proposals after that. Only the authorized person from the PE or opening committee members
will be allowed to access and open the bids/proposals at and from the time of stipulated time for
the bid/proposals opening.
After the opening, the bids/proposals will be given access to the bid evaluation committee for eval-
uation. Most of the parts of the evaluation will be automated in the system to minimize discretion
by the evaluators.
All events, transactions, access information, bid/proposal data, and processed data shall be recorded
in the e-GP system, and remain in encrypted form when in the system. Only the authorized per-
sons as per their authority and role in the system shall get access to relevant and authorized data
or information.
CHAPTER 5 – PROCUREMENT DOCUMENTS

Refer
5.1 Preparation of Draft Procurement Documents Manual
5.1
a) The PE shall prepare the draft Procurement Documents in a manner best calculated to encourage
competition and achievement of the procurement objectives as given in 1.2 above.
b) The PE shall complete the above-mentioned task prior to the appointment of the PC and BEC.
Refer
5.2 Contents of Procurement Documents Manual
5.2
The Procurement Documents shall contain all relevant information necessary for a prospective
bidder to prepare a responsive bid/proposal. The contents of the Procurement Document shall be
unambiguous.
Refer
5.3 Standard Procurement Documents (SPDs) Manual
5.3
a) PEs shall use the appropriate SPDs, with minimum changes, if necessary, to address procure-
ment specific issues. In the case of procurements funded by a Foreign Funding Agency, the
PEs may use the SPDs mandated by such agencies.
b) In case of Information Systems, separate Procurement Documents, as may be necessary,

will be prepared by PE to cover procurement and contract documents to facilitate successful
installation, integration and operation of a range of Information System applications- from
straightforward supply, installation and maintenance of technology products, to complex
development, integration and operation of mission-critical Information Systems.
c) Where no relevant SPDs are available, the PE may use other appropriate Procurement Docu-
ments.
d) All such documents must be reviewed/recommended and approved by the BEC and the PC,
respectively. The BEC and PC shall be jointly and severally responsible for the contents of
such documents. However, it is the duty of the PE to ensure that the Procurement Document
is complete with any amendments recommended by the BEC and approved by the PC.
e) In case of SPDs in e-GP, all data sections like bid data sheet, bill of quantity/material, schedule
of delivery, technical and financial proposals, special conditions of contracts, and other data
related forms should be available as web forms or interactive data capturing and processing
system. SPDs static sections, in non-modifiable PDF format, should be built into the e-GP sys-
tem process itself. Its use should enhance efficiency in administrative processes and contribute
to good governance.
For Works contracts standard formats published by CIDA may be used in instances where the PE
is of the opinion that such are the most suitable.
Refer
5.4 Request for Bids/Proposals Manual
5.4
Adequate publicity shall be given to the request for bids/proposals in national newspapers, orga-
nization’s website and National Procurement Commission’s web portal, e-GP portal and in case of
ICB in relevant international or donor websites.
Request for bids/proposals should be brief but should contain appropriate and relevant basic infor-
mation required by prospective bidders to form, with sufficient clarity, an opinion as to the scope
of the procurement.
Refer
5.5 Instructions to Bidders (ITB) Manual
5.5
Instructions to bidders shall contain clear, precise and relevant information for bidders sufficient
to prepare and submit responsive bids/proposals.
Refer
5.6 Eligibility of Bidders Manual
5.6
(a) Eligibility requirements for bidders shall be limited to those that are essential to ensure bidder’s
legality and capacity to perform the relevant contract and shall be included in the Procurement
Documents.
(b) Bidders should be considered as ineligible bidders under the following two situations among
others:
i. any blacklisted contractor/supplier/service provider;

ii. any contractor/supplier/service provider who displays a conflict of interest.
Refer
5.6.1 Eligibility for Works Contracts Manual
5.6.1
(a) In the case of procurement of Works (excluding Works implemented through Com-
munity Based Organizations), domestic contractors shall have the appropriate and
valid CIDA registration at the time of closing of bids/proposals and award of contract.
(b) CIDA registration shall not be a criterion for purchasing Procurement Documents.
(c) CIDA registration shall, for purposes of evaluation, be considered an eligibility

criteria only.
5.6.2 Eligibility for Consortia/Joint Ventures
(a) Firms should be allowed to bid as a joint venture or as a consortium, to enhance
their qualifications and capabilities. Any partner of a joint venture/consortium is not
allowed to submit another bid/proposal independently or as a joint venture partner or
as a consortium with another for the same procurement.
(b) If a bid/proposal is submitted as a joint venture or a consortium, all parties of the joint
venture/consortium shall be jointly and severally liable for the entire contract.
(c) If a consortium or a joint venture has not been formed at the time of bid/proposal sub-
mission, the bid/proposal shall include sufficient material to establish the intention to
form such consortium or a joint venture together with respective rights and liabilities
of the consortium/joint venture parties. In any event consortium/joint venture shall
be established prior to entering into contract.
5.7 Equal Treatment for Foreign and Domestic Bidders

(a) In procurements under ICB, bidding and contract conditions shall have equal application to
both domestic and foreign bidders, except in complying with the requirements of domestic
preference and CIDA registration (in the case of construction contracts) for domestic bidders.
(b) If any foreign currency payments are envisaged under the contract, both the foreign and domestic
bidders shall be eligible to quote and to be paid in foreign currency.
(c) To be eligible for foreign currency payment bidders are required to submit justification to that
effect. Import of plant, equipment and machinery and payment of remuneration for expatriates
etc. would be considered as valid justifications.
Refer
5.8 Bid/Proposal Validity Period Manual
5.8
Bidders shall be required to submit bids/proposals valid for a period specified in the Procurement
Documents. Bid/proposal validity period must be requested indicating a certain calendar date, (not
in number of days), which shall be sufficient to enable the PE to complete the comparison and
evaluation of bids/proposals, review the recommendation for award and obtain all the necessary
approvals so that the contract can be awarded within the bid/proposal validity period. In the event
the evaluation cannot be completed, the PE shall request for an extension of the bid/proposal validity
as per the revised calendar date.
Refer
5.9 Bid Security Manual
5.9
A bid security must be submitted by all the bidders, participating in ICB, LIB, NCB or LNB bid-
ding processes as specified in the Procurement Documents. Validity period of bid security must be
requested indicating a certain calendar date, (not in number of days).
A Procuring Entity may accept a bid securing declaration in place of a bid security, provided that
this is specified in the Procurement Document. If the bidder fails to fulfil any of the requirements
given in the declaration, the bidder shall be blacklisted as per Procurement Guideline 9.4.
5.10 Clarity of Procurement Documents

(a) All prospective bidders shall be provided with the same information other than two stage
bidding and shall be assured of equal opportunities to obtain additional information.
(b) Where ever applicable a pre-bid meeting/site visits may be arranged whereby prospective bid-
ders have the opportunity of seeking clarifications from the PE. All bidders must be provided
with the same information by the PE.
Refer
5.11 Clarifications and Modifications Manual
5.11
(a) A prospective bidder requiring any clarification of the Procurement Documents should notify
to the PE in writing, with sufficient time before the date of bid/proposal closing.
(b) At any time prior to the date of closing of bids/proposals PE may, at its own initiative or in
response to a clarification requested by a prospective bidder, modify Procurement Documents
by issuance of addenda with the recommendation of the BEC and approval of the PC.
(c) If deemed necessary, the PE may extend the deadline for bid/proposal closing giving due
consideration to the PTS and other Bidders, with the approval of the PC.
5.12 Alternative Bids/Proposals or Bid Options/Proposal Options
(a) The Procurement Document shall clearly indicate when bidders are allowed to submit alter-
native bids/proposals, how alternative bids/proposals should be submitted, how bid prices of
the alternative bid/proposal should be offered and the basis on which alternative bid/proposal
shall be evaluated.
(b) Alternative bids/proposals submitted by a bidder, shall be considered as a separate bid/proposal
and it shall be supported with an independent form of bid and bid security.
(c) If bidders are permitted to submit alternative bids/proposals it shall be clearly stated in the
Procurement Document. However, only the original bids/proposals shall be considered for the
purpose of evaluation.
(d) If the original bid/proposal submitted by the bidder is considered as the lowest evaluated and
substantially responsive bid/proposal, the bidder’s alternative bid/proposal will be compared
with his original bid/proposal. In such a situation, if alternative bid/proposal is accepted, it
shall fully comply with employer’s requirements and bid/proposal price shall not be higher
than the original bid/proposal price.
If alternate bids/proposals are not permitted in the Procurement Document, any alternate bid/
proposal shall not be considered.
(e) Procurement Document shall specify whether bid/proposal options are allowed or not. If
bidders are allowed to submit options, the Procurement Document shall clearly indicate how
bid/proposal options should be submitted, how bid/proposal prices should be offered and the
basis on which bid options shall be evaluated.
If Procurement Documents specify bid/proposal options are not allowed, bids/proposals with
all options will be rejected.
Refer
5.13 Value Added Tax Manual
5.13
The bidders shall be instructed to indicate VAT separately in their bid/proposal price and VAT shall
not be considered for evaluation of bids/proposals.
Refer
5.14 Bid/Proposal Evaluation Criteria and Qualification Requirements Manual
5.14
(a) The Procurement Documents shall clearly specify the relevant factors, in addition to price, to
be considered in bid/proposal evaluation.
(b) Pre-qualification criteria and post qualification criteria shall also be clearly stated in the relevant
Procurement Documents.
(c) The disclosed criteria shall not be modified, or additional criteria shall not be introduced during
the bid/proposal evaluation.
(d) If bids/proposals based on alternative designs, materials, completion schedules, payment terms
etc. are permitted, conditions for their acceptability and method of their evaluation shall be
expressly stated.
Refer
5.15 Conditions of Contract Manual
5.15
(a) The General Conditions of Contract (GCC) are generally used with all types of contracts and
shall be issued with the Procurement Document. Special Conditions of Contract (SCC) may
be included in the Procurement Document depending upon the need.
(b) Provisions indicated in the SCC will take precedence over the corresponding provisions in the
GCC. Additional clauses shall be added to SCC to suit the particular contract.
Refer
5.16 Price Adjustment Manual
5.16
For contracts with long delivery or completion periods including major civil works contracts, price
adjustment provision shall be provided in the Procurement Document.
Refer
5.17 Advance Payment Manual
5.17
An advance payment can be made, when required provisions are included in the Procurement
Document.
Refer
5.18 Retention of Money in Works Contracts Manual
5.18
The PE shall retain a specified amount as retention money to ensure that the contractor rectifies
any defects.
Refer
5.19 Performance Security Manual
5.19
A performance security shall be provided by the contractor/supplier, to safeguard the PE in case of
breach of contract and unsatisfactory performance.
Refer
5.20 Liquidated Damages Manual
5.20
Provision shall be made in the contract for computation and charging of liquidated damages, for
delays which result in a loss to PE where supplier/contractor is responsible for the delay.
Refer
5.21 Dispute Resolution Manual
5.21
All disputes arising out of contract agreements shall be resolved through amicable negotiation,
mediation, adjudication or arbitration. Arbitration shall be in accordance with the provisions of the
Arbitration Act No. 11 of 1995 of Sri Lanka.
5.22 The Law of Contract
The law governing the Contract shall be the laws of the Democratic Socialist Republic of Sri Lanka.
Refer
5.23 Specifications Manual
5.23
(a) Specifications shall include material, design, quality, standards and workmanship for all
prospective procurements. It should meet the essential requirements of the PE and be
objective, functional, and fit for the purpose.
(b) It should be based on respective national standards and/or equivalent international standards
as applicable.
(c) Specifications should be of generic nature reflecting functional aspects than technical
aspects.
Refer
5.24 Contract Manual
5.24
The contract document shall be issued with the Procurement Document.
CHAPTER 6–PROCUREMENT PROCESS
Refer
6.1 Publication of Request for Bids (RFB)/ Request for Proposal (RFP)/
Manual
Specific Procurement Notice (SPN)
6.1
Wide publicity shall be given to the RFB/RFP/SPN which should include sufficient information
for prospective bidders to respond in offering bids/proposals.
Publicity of RFB/RFP/SPN will include publishing in the relevant PE/Ministry/NPC website as

well as in e-GP portal.
In case of LNB and LIB, RFB/RFP/SPN is not applicable.
Refer
6.2 Issuance of Procurement Documents Manual
6.2
Procurement Documents, including in the e-GP system, should be made available for purchase by
the prospective bidders, as mentioned in the RFB/RFP/SPN on the payment of the prescribed fees,
if any, up to one day prior to the deadline for submission of bids/proposals.
Procurement Documents and web-forms or functions to review and response to the RFB shall be
available in e-GP System as provided for in the e-GP Guidelines.
Refer
6.3 Bidding Period Manual
6.3
The bidding period shall be reasonably adequate to prepare and submit the bids/proposals.
Refer
6.4 Submission/Receipt of Bids/Proposals Manual
6.4
The bid/proposal shall be submitted using Procurement Documents issued by PE which is not
transferable to any other bidder.
The bids/proposals shall be received only at one location as stated in the Procurement Document.
When e-GP is introduced, all bids/proposals shall be accepted only through e-GP System as per
the Guidelines relevant to the e-GP system.
Refer
6.5 Rejection of Late Bids/Proposals Manual
6.5
Bids/proposals shall be closed at the time specified in the Procurement Documents. Late bids/
proposals shall not be accepted and shall be returned unopened.
e-GP System shall automatically reject the late bids/proposals.

Refer
6.6 Public Bid/Proposal Opening Manual
6.6
a) Bids/proposals shall be opened by a bid/proposal opening committee in the presence of the

bidders or their authorized representative/s who wish to attend, soon after the closing of bids/
proposals.
b) No bid/proposal is rejected by the bid/proposal opening committee at the bid opening.
c) In case of e-GP, bids/proposals will be opened electronically as guided in the e-GP Guidelines.
d) Amount in the form of bid announced at the public opening shall be the declared bid sum. Any
discounts offered at the time of bidding should have been included in this amount.
CHAPTER 7 – BID/PROPOSAL EVALUATION
Refer
7.1 General Manual
7.1
All the bids/proposals should be evaluated strictly on the basis of the terms and conditions incorpo-
rated in the Procurement Document. No new condition should be brought in while evaluating the
bids/proposals. Aim should be to ensure that no bidder gets undue advantage at the cost of other
bidders and/or at the cost of the PE.
In case of e-GP system, most of the evaluations will be automated in the evaluation process.
Refer
7.2 Confidentiality Manual
7.2
Entire bid /proposal evaluation process shall be confidential until the publication of award. After
bid/proposal opening, information relating to substance, clarification, examination and evaluation
of bids/proposals and recommendations concerning awards shall not be disclosed to bidders or to
any other person not officially concerned with this process.
All bid data, information, documents and evaluation records shall remain encrypted and confidential
in the e-GP System. Only the evaluators will have access to the records for the purpose of carrying
out evaluation until the decision to award is made.
7.3 Services of Consultant/s for Evaluation of Bids/Proposals

a) If the assistance of the consultant/s is required for evaluation of bids/proposals it shall be
obtained under the supervision and guidance of BEC.
b) Consultants shall not form part of a BEC.
c) The BEC shall submit to the PC its own observations and recommendations in the form of a
report along with the consultant’s report.
Refer
7.4 Time Frame for Bid/Proposal Evaluation Manual
7.4
Bid evaluation shall be undertaken expeditiously, leaving ample time to seek all the requisite formal
approvals. Hence, bids shall be evaluated within the period specified in the PTS.
Refer
7.5 Extension of Bid/Proposal Validity Manual
7.5
PC, BEC and PE must endeavour to make the award in keeping with the PTS and within the bid/
proposal validity period.
a) in exceptional situations where it is not possible to make the award before the expiry of
bid/proposal validity period, prior to such expiration the validity period may be extended
appropriately, and the bid security also extended accordingly.
b) if a bidder does not agree to extend the validity of the bid/proposal and/or bid security, such
bid/proposal shall be excluded from further consideration. However, in such a situation
the bid security shall not be forfeited.
Refer
7.6 Original Bid/Proposal to be Evaluated Manual
7.6
Only the bids/proposals marked “original” shall be evaluated by the BEC/PC.

Refer
7.7 Purpose and Stages of Bid/Proposal Evaluation Manual
7.7
a) The purpose of bid/proposal evaluation is to determine the substantially responsive lowest
evaluated bid/proposal out of the bids/proposals received..
b) Bid/proposal evaluation process could be divided into four broad stages:
7.7.1 Stage One: Collection of Data and Information and Prepare for Bid/
Proposal Evaluation:
Begin with collection of information and preliminary examination of bids;
a) basic data collection;
b) record of bid/proposal opening and related information collection;
c) examination for completeness of bids/proposals; and
d) preparation of table of bidder’s completeness.
7.7.2 Stage Two: Examination of Bids/Proposal for Substantial Responsiveness:

a) examination of substantial responsiveness to commercial requirements.
b) the bids/proposals that are responsive to commercial requirements will be examined for
responsiveness to technical requirements.
c) when examining the responsiveness to both commercial and technical requirements due
recognition will be given for deviations.
d) preparation of a table of responsiveness to commercial, technical requirements and deviations.
7.7.3 Stage Three: Detailed Bid/Proposal Evaluation:

At this stage detailed bid/proposal evaluation will be carried out in accordance with the Procurement
Document, to determine the substantially responsive bids/proposals after which the financial
evaluation should be carried out.
If the Procurement Documents provide provision for application of domestic preference, will be
carried out.
At the end of this evaluation stage, a table of substantially responsive evaluated bids/proposals
will be prepared.
7.7.4 Stage Four: Is to Determination of the Lowest Evaluated Substantially

Responsive Bid/Proposal:
Step one is examination of unbalanced bids/proposals in the civil works contracts; and
Step two is examination of post qualification criteria; and
Step Three is examination of alternative bids/proposals if there is provision in the Procurement

Documents.
Finally, Selection and recommendation of substantially responsive lowest evaluated bid/proposal.
Bid/proposal evaluation process ends up with preparation of bid evaluation

report and recommendation for the award of contract.
Refer
7.7.5 Domestic Preference Manual
7.7.5
With a view to providing a realistic value addition to local raw materials and domestic bidders,
thereby promoting national industry and enterprise, when competing with foreign bidders, the
domestic bidder’s bid shall be given the margins of preference as referred in the Manual during
Bid Evaluation.
7.8 Clarifications from Bidders

During the evaluation of bids/proposals (particularly for complex works) there may be a need to
seek clarification from a bidder with the sole purpose of ensuring better understanding of the bid/
proposal as submitted so that the bid/proposal can be properly and fairly evaluated. These clarifi-
cations should not:
a) permit any substantive change to the bidder’s initial response; or
b) change the bid/proposal price, except correction of arithmetical errors in the pricing of
the bid; or
c) give an advantage to the bidder from whom clarification is sought by providing that clar-
ification;
On a request by PC or the BEC with the approval or delegated authority of PC, the PE will seek
such clarifications from the bidder in writing.
In the case of BEC requesting PE to seek clarifications without the approval of PC, such requests
shall be made known to the PC concurrently
7.9 Unrealistic Bids/Proposals

When the substantially responsive lowest evaluated bid/proposal appears to be unrealistic, on the
request of BEC, PE may require the bidder to prove written clarification, including detailed price
analysis to demonstrate the consistency of prices with the scope of Works, proposed methodology
and schedule. After evaluating the detailed price analysis, PC/BEC may as appropriate:
a) accept the bid/proposal;
b) require that the total value of the performance security be increased, at the expense of the
bidder;
c) reject the bid/proposal.
7.10 Negotiations with the Substantially Responsive Lowest Evaluated

Bidder
There should be no price negotiations except in the case of single bids/proposals as stated in (b)
below. Selection of contractors by negotiations should be a rare exception rather than the rule.
The negotiation should be held only with the substantially responsive lowest evaluated bidder.
Negotiation shall be carried out by the PC with the assistance of BEC.
Negotiation may be resorted to only in the following circumstances, with the lowest evaluated
responsive bidder;
(a) having potential to improve outcome and benefits and reduce uncertainties; or
(b) when only one bid/proposal is received after wide publicity has been given and prices
quoted by the single bidder is high, the price also may be negotiated.
The PC shall keep a record of matters agreed with the bidder during negotiations and the PE shall
execute a Memorandum of Understanding (MOU) with the bidder relating to the agreed negotiated
terms and conditions and this MOU should be included in the contract agreement. However, ne-
gotiations shall not substantially change the provisions prescribed in the Procurement Document.
Refer
7.11 Bid Evaluation Report (BER) Manual
7.11
Immediately after the evaluation is completed the BEC should prepare a Bid Evaluation Report
(BER) in the prescribed format and submit to the PC together with all supporting documents.
Refer
7.12 Rejection of All Bids/Proposals Received Manual
7.12
Rejection of all bids/proposals received can be justified only under exceptional circumstances
such as:
a) lack of competition;
b) bids/proposals are not substantially responsive;
c) when bid/proposal prices are substantially higher than the existing budget.
However,
(i) lack of competition shall not be determined solely on the number of bids/proposals
received.
(ii) even when only one bid/proposal is received, after wide publicity has been given, the
bidding process may still be considered valid, if the prices quoted are reasonable.
7.13 Re invitation of Bids/Proposals

a) Wider publicity must be given when re-inviting bids/proposals.
b) In re-inviting bids/proposals, the same Procurement Documents shall not be used without
rectifying possible deficiencies in the Procurement Document.
c) Re-inviting bids/proposals must not be for the sole purpose of obtaining lower prices.
CHAPTER 8 - AWARD OF CONTRACT
Refer
8.1 Recommendation/Determination of Contract Award Manual
8.1
BEC shall submit its report and recommendation to the PC along with the views/report of any of
the dissenting member(s).
PC must consider BEC recommendation and appropriate determination shall be made. In the case
of any dispute among members of PC, the majority decision of the PC shall prevail. However, any
PC member may submit a dissenting report.
8.2 Communication to all Bidders of the Intention to Award Contract

Within one week of being informed of the recommendation of the CAPC, MPC, DPC, PPC or
RPC, all the bidders shall be informed in writing individually by the respective authority (CAPC/
MPC, Secretary to the Line Ministry and DPC/ PPC/RPC, Head of the Department or his delegated
authority in the region/ Project Director), of the selection of the successful bidder and the intention
to award the contract to such bidder. Each unsuccessful bidder shall be informed of the reasons for
not selecting his particular bid/proposal.
After the award is made, the bidders are entitled to obtain copies of BER, including any other reports
and opinions which the BEC and/or the PC used in arriving at their respective recommendations.
However, the Secretary to the Line Ministry has the right to reserve any confidential details, which
can be legally misused subject to compliance with Right to Information Act. (RTI).
8.3 Debriefing
The Purposes of debriefing are to:
a) inform the aggrieved bidder who requests for a debriefing during the standstill period,
of the reasons for not being successful, pointing out the specific shortcomings in its bid/
proposal without disclosing contents of other bids/proposals, with the overall objective of
educating the bidder to submit more responsive and competitive bids/proposals in future.
b) minimize the level of complaints and to demonstrate clearly the principle and practice of
probity and transparency.
c) after the notification of contract award, a bidder who wishes to ascertain the grounds on
which its bid/proposal was not selected should address its request to the PE.
In the notification of contract award, the PE shall specify that any bidder who wishes to ascertain
the grounds on which its bid/proposal was not selected, should request an explanation from the
PE. The PE shall promptly provide the explanation as to why such bid/proposal was not selected,
in writing and/or in a debriefing meeting, at the option of the bidder. The requesting bidder shall
bear all the costs of attending such a debriefing. In this discussion, only the bidder’s proposal can
be discussed and not the bids/proposals of the successful or other bidders.
Refer
8.4 Standstill Period Manual
8.4
To give bidders time to examine notification of contract award and to assess whether it is appropriate
to submit a complain /appeal, a standstill period shall apply. However, standstill period does not
apply under single bid/proposals situation in a competitive bidding or under the direct selection or
under emergency situation announced by GOSL.
Refer
8.5 Appeals against Contract Awards recommended by the CAPC/SCAPC/
Manual
MPC/DPC/PPC and RPC
8.5
Any unsuccessful bidder who is not satisfied with the contract award decision, may make its rep-
resentation against the recommendation of the CAPC/SCAPC/MPC/DPC/PPC and RPC to award
the contract to the successful bidder, to the respective appeal board, within the standstill period.
The appeal board shall immediately after the filing of the appeal, serve a notice thereof to the
respective CAO/AO of a Procuring Entity.
a) request for observation and suspension of procurement proceedings shall be by a written

notification by the appeal board.
b) upon being served with a notice of a request for observation, the Procuring Entity shall
within five working days or such lesser period as may be stated by the appeal board in
a particular case, submit to the appeal board a written memorandum of response to the
request for observation together with all relevant documents.
c) appeal boards shall, after due consideration of the contents of appeals, make their recom-
mendations with reasons to the appropriate authority.
8.5.1 Appointment of Procurement Appeal Boards (PAB), Reporting and Refer

Manual
Operational Responsibilities and Payments for PAB Members
8.5.1
The key objectives of establishing the procurement appeal boards are to provide an in-
dependent review of the PC decision upon the grievances submitted by the bidders. Ap-
pealing procedure would allow contested issues to be reviewed and corrective measures
to be put in place.
PAB procedure would allow speedy decision and lower cost for all parties while at the
same time providing fairness, transparency and value for money.
The following PABs shall be appointed as per the respective authority limits as specified
under GL 2.5 from time to time;
 PABs for Cabinet level Procurements related to SCAPC, CAPC and CANC
 MPABs for Ministry level Procurements related to MPC
 DPAB/PPABs for Department/Project level Procurements related to DPC/PPC
 RPABs for Regional level Procurements related to RPC
PABs are responsible to examine and hear each and every appeal submitted by ag-
grieved parties and make its recommendation to the relevant authority with a copy to
CAO/AO/HD/PD. In the case of Cabinet and Ministry level procurements, the PAB rec-
ommendations shall be copied to NPC.
Refer
PABs for Cabinet level Procurements related to SCAPC, CAPC and
8.5.2 Manual
CANC
8.5.2
There shall be either one or more PAB/s to handle appeals related to procurements in the
relevant threshold level of SCAPC, CAPC and CANC.
PAB members for Cabinet appointed PCs are appointed by the President of Sri Lanka on
the nominations submitted by the NPC.
The appointing authority should take appropriate steps to appoint required number of PABs
to handle the procurement appeals.
Refer
8.5.3 MPABs for Ministry level Procurements related to MPc Manual
8.5.3
There shall be either one or more MPAB/s to handle appeals related to procurements in
the relevant threshold level of MPC.
The Members for MPABs are appointed by the CAO.
The appointing authority should take appropriate steps to appoint required number of
MPAB to handle the procurement appeals.
Refer
DPAB/PPAB for Department/Project level Procurements related to
8.5.4 Manual
DPC/PPC
8.5.4
There shall be a DPAB/PPAB to handle appeals related to procurements in the relevant

threshold level of DPC/PPC.
The Members for DPAB/PPAB are appointed by the CAO on the recommendation of
AO/HD/PD.
Refer
8.5.5 RPABs for Regional level Procurements related to RPC Manual
8.5.5
There may be a RPAB to handle appeals related to procurements in the relevant threshold
level of RPC.
The Members for RPAB are appointed by the AO/HD.
Refer
Payments for Members of Procurement Appeal Boards (PABs) and Staff
8.5.6 Manual
Officers and Other Officers Assisting in the Procurement Appeal Process
8.5.6
Members and alternate members of PAB shall be remunerated for participation in the
procurement appeal process. The members of the PAB and the official whose specific
responsibilities are assigned shall be remunerated.
Payment of remuneration shall be based on performance of such committees and individ-

uals and the eligible payments shall be determined by the NPC, in consultation with the
General Treasury.
8.6 Award of Contract

Following the acceptance of a bid/proposal submitted by a successful bidder,
a) a formal letter of acceptance shall be issued forthwith to the bidder by the Procuring Entity.
b) prior to issuance of letter of acceptance, the PE should ensure that budgetary provision is
available to meet the cost of contract.
c) letter of acceptance shall be issued within the validity period of the bid/proposal, and no
sooner the final approval for contract award is obtained.
d) arrangements shall be made to sign the contract as early as possible prior to the com-
mencement of the assignment.
Refer
8.7 Formal Contract Manual
8.7
A formal contract agreement is required to be entered into with the successful bidder.
Refer
8.8 Publication of Contract Award Manual
8.8
The PE should publish promptly the details of the award in appropriate media including NPC website.
CHAPTER 9 - CONTRACT ADMINISTRATION
Refer
9.1 Contract Administration Manual
9.1
The PE shall be responsible for contract administration with adequate supervision and to ensure
adherence to specifications, quality standards in the delivery of Goods, execution of Works, pro-
vision of Services and completion of Information Systems.
Refer
9.2 Change Requests /Variations Manual
9.2
a) The conditions of contract will normally empower the PE to vary the scope, quality or quantity
of Works, Services and Information Systems to be executed at any time during the progress
of the contract and provided the basis for such change and valuation of such changes within
approved limits is justifiable.
b) The CAO/AO shall appoint the ‘Change Control Committee (CCC)’ to examine the changes/
associated time extensions and to make recommendations.
c) Any contract change request/variation shall obtain prior approval by the relevant authority.
d) However, before committing any expenditure due to changes proposed, necessary financial
provision shall be available and relevant total cost estimate shall be duly revised and necessary
prior approvals from the appropriate authority obtained.
9.3 Extension of Time
Extensions of time may be granted by an appropriate authority, in exceptional circumstances or due
to force majeure situations, when the contractor or the supplier establishes, to the satisfaction of
the PE, that delays are attributable to circumstances beyond the control of the contractor/supplier.
Refer
9.4 Debarment or Blacklisting of Defaulted Bidders/Contractors/Suppliers Manual
9.4
Any defaulted contractor/bidder/supplier shall be considered for blacklisting or banning to participate
in the public Procurement Process for a period specified by the appropriate authority.
NPC and the CAO/AO shall maintain a database of defaulting contractors/suppliers which shall be
updated regularly. After obtaining the information from particular PE the relevant CAO/AO shall
inform NPC the details of the contractor/supplier to be included in the list maintained by the NPC.
The PEs should not award any contracts to any bidder, as long as their names remain in the data base.
CHAPTER 10 – PROCUREMENT OF ESSENTIAL REQUIREMENTS
10.1 Procurement of Essential Requirements
Procurement of essential requirements to ensure day to day operations of the PEs often involves
multiple awards for partial quantities to assure continuity of supply and multiple purchases over
a period of time to take advantage of favourable market conditions.
a) PEs may maintain a list of pre-qualified bidders for procurement of such requirements
through issuing of periodic invitations.
b) bidders may be invited to quote prices, which prevails at the time of Invitation.
c) bid/proposal validities shall be as short as possible.
d) if the price of the commodity, which intended to procure is not in local currency, bidders
should be allowed to quote in the currency which the commodity is usually priced in
the market.
e) Procurement Documents may permit electronic, telexed or faxed bids/proposals, if there

is no requirement for bid security, or if standing bid securities valid over a specified
period of time have been submitted by pre-qualified bidders.
f) standard contract conditions and forms consistent with market practices shall be used.
10.2 Procurement of Spare Parts
PEs may purchase spare parts from the original manufacturer of equipment, or their authorized local
agent or independent manufactures of spare parts, or spare part dealers, considering the advantage.
Refer
10.3 Repairs to Motor Vehicles and Equipment Manual
10.3
Repairs to motor vehicles and other equipment may be carried out through the local accredited
agents of the manufacturer provided that the PE is satisfied that the quotation is reasonable,
having taken into account the economy of the repair cost, the age and condition of the vehicles.
10.4 Periodicals and Publications
Periodicals and publications may be purchased directly from the publishers or from their agents
and if there is any discount it should be so stated in the invoice.
10.5 Purchasing of Fuel
Requirements of fuel may be purchased from depot/s closer to the PE.
10.6 Procurement of Pharmaceuticals and Medical Equipment
Procurement of drugs, vaccines, medical devices, biological products, nutritional additives and
contraceptives hereinafter collectively referred to as pharmaceuticals is a complex and a unique
process which requires special attention.
A separate publication containing Guidelines relating to the procurement of pharmaceuticals

(hereinafter called and referred to as “Guidelines for the Procurement of Pharmaceuticals” will
be issued by the NPC to address the special concerns relating to pharmaceuticals procurement.
The broad principles of procurement outlined in these Guidelines, will however, continue to be
applicable to the extent possible, for the procurement of pharmaceuticals, unless they have been
amended/modified in the Guidelines for the procurement of pharmaceuticals. In the event of a
conflict between these Guidelines and the Guidelines for the procurement of pharmaceuticals,
the latter shall prevail.
These Guidelines will continue to be applicable as the appropriate Guidelines for the procurement
of medical equipment.
CHAPTER 11 – PROCUREMENT OF INFORMATION SYSTEMS (IS)
11.1 Information System (IS) Procurement

IS procurement is the common term used to designate all procurements having to do with
computing and communication technologies regardless of their hardware, software, supply,
or service components such as installation, operation, and maintenance.
IS procurement is also conducted on the Guidelines and procedures described through chapter
1 to chapter 9 of this Guideline.
Refer
11.2 Procurement Documents to be Used Manual
11.2
Refer
11.2.1 Straightforward IS Procurements Manual
11.2.1
In procurement of straightforward IS products, PE defines required products,
their technical specifications and service requirements.
Refer
Complex Supply and Installation and Complex System
11.2.2 Manual
Engineering Procurements
11.2.2
In this procurement bidder bears much of the design risk since it undertakes the
responsibility to design and build a system that reaches operational acceptance.
Refer
11.2.3 IS Consulting Services Manual
11.2.3
When using the RFP approach for this type of assignments, there would need to
be some customization of the standard RFP issued by the GOSL for the Selection
of Consultants.
Refer
11.2.4 Pre-qualification (PQ)/Initial Selection Manual
11.2.4
Prequalification/Initial Selection is normally used with Requests for Proposals
(RFP) and is optional depending on the nature and complexity of the IS pro-
curement.
CHAPTER 12 – FRAMEWORK AGREEMENT
12.1 Introduction
The Framework Agreement is an arrangement to enable timely supply of Goods, Works, Services
and Information Systems, which are commonly used by Procuring Entities to procure Goods,
Works, Services and Information Systems which have national significance, in desired quality and
at prices attributable to economies of scale resulting from bulk purchases ensuring value for money.
A Central Procurement Entity or Procuring Entity on its own and on behalf of other Procuring
Entities may administer Framework Procurements and enters into Framework Agreements with
suppliers so that Procuring Entities may obtain value for money in their purchasing while
being assured that their procurement is compliant with the Prrocurement Guidelines.
FWAs may be established for the anticipated procurement of Goods, Works, Services and Infor-
mation Systems, as and when required, over a specified period of time. FWA does not commit
either party to procure or supply. Once established, a FWA provides a fast and efficient way to
procure Goods, Works or Services.
A multi- supplier FWA allows a PE to select from a number of firms, helping to ensure that each
procurement represents best value for money.
FWAs may be appropriate for the procurement of Goods, Works, Services or Information Systems
under the following circumstances:
 frequent reordering is based on the same, or similar requirements, or set of specifications;
 where different departments and units under a Ministry or public agency or different
Procuring Entities procure the same Goods, Works, Services or Information Systems, and
aggregating the demand could lead to volume discounts;
 planning for emergency situations; or
 no single firm is considered to have sufficient capacity.

Refer
12.2 Features of Framework Agreement Manual
12.2
A Framework Agreement sets out the terms and conditions for subsequent Call-Off Contracts
but places no obligations on the Procuring Entity to place future purchase orders, does not
require or obligate Procuring Entity to issue any minimum number or value of purchase orders,
and does not guarantee any minimum or maximum amount of expenditure.
Refer
12.3 Responsibility for Management of Framework Agreement Manual
12.3
A Central Procurement Entity or Procurement Entity, on its own or on behalf of other Procuring
Entities must closely manage the framework agreement.
Refer
12.4 Procedural and Implementation Arrangements Manual
12.4
The procurement of items which are of common use to Procuring Entities shall be carried
out in accordance with the provisions complying with the Guidelines and procedures prescribed
through chapter 1 to chapter 9 of this Guideline.
Refer
12.5 Procurement Management Manal
12.5
Procurement management in a Framework Agreement is based on the Call-Off Contract as issued
by the Procuring Entity. Issuance of Call-Off Contract depends on the provisions laid out in the
terms and conditions of the Framework Agreement.
CHAPTER 13 – e-GOVERNMENT PROCUREMENT (e-GP)
13.1 Introduction
An e-GP is a process that uses the Internet and Internet tools to support every stage of the Pro-
curement Process.
The conversion from conventional (paper based) government procurement activities to e-GP is
becoming an international trend in many countries in the World. GOSL is in the process of getting
ready to implement e-GP in the country for Goods, Works, Services, Information Systems and
Consultancy Services. However, there are major issues and challenges that need to be addressed
before the implementation of fully pledged e-GP system.
An e-Government Procurement (e-GP) is defined as the collaborative use of information and com-
munications technologies by Government Entities, bidding community, regulatory agencies, legal
authorities, National Procurement Commission, Ministry of Finance, other supporting service pro-
viders, and civil society in conducting ethical procurement activities of the Government procurement
process cycle for the procurement of Goods, Works, Services, Information Systems, Consultancy
Services and management of contracts ensuring good governance and value-for-money in public
procurement, and contributing to the socioeconomic development of country.
Refer
13.2 Implementation Process of e-GP at the PEs Manual
13.2
All stages of procurement cycle of the PEs can benefit from an e-GP such as procurement planning,
pre-qualification, advertising, PPP advertisements, preparation and issuance of Procurement Docu-
ments, pre-bid conference, and issuing PB minutes, issuing addendums, modifications and revising
Procurement Documents, clarifications, modification and addenda’s, receipt of bids/proposals,
unsolicited proposals, bid/proposal closing, bid/proposal opening, evaluation of bids/proposals,
request for clarifications, and contract award notification, and publication of contract award results.
13.3 Fully fledged e-GP system to be implemented by the PEs

Procurement Entities (PEs) may use an e-GP for all of their procurement activities provided the
appropriate authority is satisfied with the adequacy and competence of the system, including;
 accessibility
 security of process
 authentication
 integrity
 confidentiality
 reliability
 audit trial features
 electronic signatures
 design and implement an e-GP management system
 identification of requirements
 legal obligations/ Acts/ agreements/legislative approaches, and
other mandatory requirements for e-GP implementation.
13.4 Good Governance in Public Procurement: Key to e-GP
The procurement principles and objectives, particularly transparency and non-discrimination

must be met if e-GP systems are to be applied to the activities of Public Procurement similar to
paper-based procurement.
The principle of non-discrimination between paper-based and e-procurement shall, as far as

practical, be reflected in the e-GP system. PE shall have in place the transitional option of paper-
based procurement for bidders/consultants who wish it or who do not have access to e-GP. The
e-GP system must be designed to ensure;
 accountability
 efficiency and effectiveness
 fraud and corruption control
 equity and ethics
 rule of law and predictability
 civil society awareness
 equality of access and fairness,
 open competition,
 security of process
The following requirements are designed to support these principles for PEs procurement activities.
Converting these principles into operational effect has implications for variables such as;
 technological neutrality,
 technical standards for interoperability and security,
 ensuring good audit trails,
 cost and ease of participation.
These requirements supplement and do not replace existing requirements that apply to traditional
procurement procedures specified in the Procurement Guidelines & Manuals published by the NPC.
Refer
13.5 e-GP System Access Manual
13.5
When e-GP is to be applied to PE’s procurement activities, it shall have the minimum features
specified in the Procurement Manual.
NPC encourage individual PEs to use e-GP depending on the availability of resources that must
be met. When e-GP is implemented by PEs, they shall follow the mandatory requirements and
processes specified in the Procurement Guidelines issued for traditional paper-based procurement
by NPC if it is not provided in this Guidelines and Manuals.
13.6 Procurement Plan

Where a PE intends to use an e-procurement system, it shall prepare its master plan, detail plan, and
other procurement plans through the system and publish it in the relevant web sites (PE’s website,
NPC website, FFAs websites-if applicable / e-GP portal-if available).
13.7 Bidder Registration

Bidders (suppliers, contractors, and consultants) may register as a single entity, joint venture or
association with sub-contractors or sub-consultants, or individual consultant through an online
application form provided by the PE’s e-GP system for registration.
13.8 PE’s Requisition

Where the e-GP system is in operation, PEs shall request all the procurement requirements through
the e-GP system.
Refer
13.9 e-Advertising Manual
13.9
The notice for “Invitation for Bid/Application/Proposal” and other procurement opportunities shall
be published in the PE’s web site, NPC web site, and FFA’s web sites-if applicable and depending
on the value of contract /e-GP Portal-if available.
Notice shall be published in local newspapers as well and there shall be no difference what so ever
between the paper advertisement and those advertised online.
Refer
13.10 Procurement Documents Manual
13.10
PE may distribute Procurement Documents (PDs) inclusive of RFPs by using electronic systems
(downloaded from a website) or means (sent as email attachment, on a compact disc, or flash drive
or other storage devices if appropriate). The email used shall be part and parcel of or dedicated to
the e-GP system with adequate security and privacy controls.
There shall be no difference between electronic and paper versions of the PDs. Splitting documents
into combinations of electronic and printed portions should be avoided.
Refer
13.11 Correspondence, Clarifications and Amendments Manual
13.11
The e-GP system shall be interactive and have the capability to enable bidders participating in
a procurement proceeding to request or seek information or clarification on line. When a bidder
makes an inquiry or seek information or clarification relating to the Procurement Documents, the
PE shall promptly respond on line.
Correspondence with bidders during this period may be done electronically as long as print
correspondence is used for bidders who request it.
If the response affects the requirements of the bid/proposal, it shall be copied to all bidders and
shall include a description of the inquiry but without identifying the source.
Copies of all correspondence shall be kept for audit.

Refer
13.12 Pre-Bid Conference Manual
13.12
PE may carry out online pre-bid conference on the date, time and venue, as stipulate in the
Procurement Document (PD/RFP).
Responses/clarifications of the queries relating to the Procurement Documents should be posted

by bidders online before or during the pre-bid conference. This is allowed to be done only by the
bidders who purchased the documents.
13.13 Amendments to the Procurement Document

To the extent permissible under the Procurement Guidelines the PE may amend the Procurement
Documents at any time prior to the bid/proposal submission deadline.
PEs shall issue an addendum and publish in all related websites and also send via an automated
electronic means (email, SMS alert etc) and make available online for the information of the public
and the prospective bidders who have purchased/received the Procurement Document. However,
there shall be a time period of minimum 10 working days or more between last correspondence
and bid/proposal closing deadline.
Refer
13.14 Submission of e-Bids/Proposals Manual
13.14
Online submissions shall be:
(a) submitted/received into an electronic bid box; and
(b) maintained to high standards of security, confidentiality and integrity.
When the option is available, bids/proposals may be submitted electronically in the standard
e-formats issued by the PE or in paper format. PEs may offer registered bidders the use of online
electronic systems (uploaded through a website) to submit their bids/proposals.
The date and time for the receipt of bids/proposals shall be the same for both regardless if submitted
electronically or on paper. The terms and conditions of the e-submissions are given in the Manual.
Refer
13.15 Bid Securities and Performance Securities Manual
13.15
In order to facilitate procurement when using electronic systems, bid securities may request by the
PEs at their option. However, PEs if they so wish, may use other methods like bid declaration instead
of bid securities and/or sanctioning method for bidders who do not honour their bids/proposals.
Refer
13.16 Public Opening of e-Bids/Proposals Manual
13.16
1. If option is available, PE may use e-GP to open bids/proposals received to electronic bid box.
2. The electronic bid box in (1.) above shall have;
(a) three passwords that are simultaneously time-activated;
(b) each password shall be issued to different officers who are members of the Bid/Proposal
Opening Committee(B/POC); and
(c) the e-bid box shall remain closed until the time of bid/proposal opening.
Refer
13.17 Evaluation of e-bids/e-proposals Manual
13.17
1. The PE receiving the bids/proposals should form a Bid Evaluation Committees (BECs)
comprising of required number of members.
2. PE may use pre-approved automated electronic evaluations as long as the evaluation aligns
with the criteria established in the Procurement Documents; is consistent with the principles
of economy, efficiency, equal opportunity, and transparency.
3. A Bid Evaluation Report (BER) shall be prepared in accordance with the requirements specified
in the Procurement Document. The BER shall contain scanned copies of the signed record of
bid/proposal opening, the advertisement, and other documents for which copies are required.
A print copy of the BER shall be kept on file for audit and NPC investigation purposes.
13.18 Publication of Contract Awards

Contract awards shall be published online consistent with bid advertising in the PE’s website, NPC’s
website and FFA website if applicable.
13.19 Notification of Contract Award (NOA) Intention letter

1. A PE shall notify all bidders participating in the e-bidding process of the outcome of the award
and intention to award the contract to successful bidder simultaneously electronically.
2. Unsuccessful bidders have the option of appealing like paper-based procurement.
Copies of BER together with any consultant’s reports that were submitted in relation to evaluation
of the bid/proposal may be made available to any bidder at their request in terms of the Right
Information Act, No. 12 of 2016.
3. Debarred bidders will be verified in NPC website before issuing NOA.
4. The PE shall sign and send electronically a notification to:
a) the successful bidder that their bid/proposal was successful; and
b) to unsuccessful bidders that their bids/proposals were unsuccessful giving reasons thereof.
5. Successful bidder will accept the notification of award online using e- signature or digital
signature whichever is applicable.
6. Contract will be signed, manually or digitally, by both parties. The content of documentation
that is part of the e-GP system shall form part of the contract.
13.20 Contract Negotiation

If provided for in the contract document, Contract negotiation can be carried out online and
negotiation records will be recorded in the electronic system.
13.21 Contract Management

If provided for, the electronic system shall be interactive and have the capability to provide functions
of contract management including to generate purchase orders and receive invoices from suppliers,
track deliveries, place call-off orders in case of Framework Agreements, monitor contract execution
progress etc.
13.22 Payments for Procurement Documents

1. Prospective bidders shall have open and free access to all Specific Procurement Notices (SPNs)
and Procurement Documents published in electronic format. No payment shall be required.
2. A nominal fee may be charged as a condition for submitting a bid/proposal. For the purpose
of these requirements, nominal fee is expected to be an amount less than or similar to that
charged for obtaining paper Procurement Documents.
3. Bidders shall be offered an electronic payment facility (e.g. electronic check, credit card) to
avoid situations where bidders incur charges online but must visit an office to pay for them.
13.23 Records Management System

The electronic system shall have a secure document management system.
13.24 Authentication
If a digital certification/signature is required, the following shall apply.
1. bidders shall be certified for a reasonable period of time (at least 1 year) and shall not be
required to request certification for each bid/proposal with the same PE.
2. certification shall be kept open permanently allowing bidders to submit the request for
certification at any time to allow them to register in advance for future bidding process.
3. in the case of ICB, certification process shall allow bidders to take all actions required for their
certification within their own countries, without the need to travel abroad.
4. certification process shall accept an electronic signature or a digital certification/signature issued

by certifying authorities within the country of the bidder or shall accept submission of online
or offline documentation to certify the authenticity of the bidder’s representative, accepting
documentation that can be obtained under commonly used procedures in the country of the
bidder (for example, no notarization in a consulate or embassy shall be required).
Refer
13.25 Information Security Management (ISM) Manual
13.25
1. For electronic system, the PE shall ensure to maintain, and implement an information security
management system that conforms with international standards.
2. PE shall clearly specify in the Procurement Documents the procedures to be followed in the
case of any kind of failure, malfunction, fault, crash or breakdown of the electronic system used
during Procurement Process. PEs shall not accept any responsibility or liability for failures,
interruptions or breakdowns other than in those systems strictly under PE’s own control.
Refer
13.26 Electronic Procurement Models Manual
13.26
1. PEs may use electronic systems under any of the models as explained in the Manual or any
other different model suitable for the purpose. However, before selecting an electronic system
by the PE, prior approval shall be obtained from the NPC.
2. If the electronic system is operated by a third party under a service contract arrangement, that
third party service providers and their subsidiaries or parent companies shall be ineligible to
be awarded contracts on Procurement Process that are undertaken through the said electronic
system and their staff, consultants or other representatives shall enter into such agreements
with the PE sufficient to maintain secrecy and confidentiality.
13.27 Applicability of the e-procurement Guidelines and Manuals

1. Irrespective of who operates the system all terms, requirements and conditions of this Guidelines
and manuals shall apply.
2. Use of e-GP system is subject to the general laws of Sri Lanka.
3. Any discrepancies between Procurement Guidelines & Manuals for Goods, Works, Services and
Information Systems or Procurement Guidelines for Selection & Employment of Consultants
and in the applications of any of the requirements in this e-GP chapter 13, clarifications shall
be obtained by the NPC and final decision of the NPC shall prevail.
4. If particular circumstances arise in PE that cause the e-GP requirements specified in this chapter
13 to be in conflict with other principles then the circumstances shall be referred to NPC for
interpretation.
CHAPTER 14 – OPEN CONTRACTING DATA STANDARD (OCDS)
Refer
14.1 Introduction Manual
14.1
The Open Contracting Data Standard (OCDS) is a core product of the Open Contracting Partnership
(OCP). The objective of the data standard is to support Governments to publish contracting data
in a more accessible, inter-operable and useful manner and to enable the widest possible range of
stakeholders to use contracting data effectively.
The Guidelines describes the OCDS presents a high-level approach for each implementation in
an e-Procurement system. If the OCDS is implemented in an e-Procurement system when first
introduced by incorporating OCDS within the system itself, the system specification phase must
explicitly define OCDS-specific requirements (e.g. data fields, triggers, reports, visualizer).
By adopting the OCDS into the contracting process, the expected benefits are important for key
stakeholders. The users may use open contracting data in order to:
a) achieve value for money;
b) provide the potential to increase trust and transparency with the public, for the Government;
c) strengthen the transparency, accountability and integrity of public contracting;
d) access and review details of public contracting processes and monitor spending to ensure
that citizens are getting the best outcomes, for the non-governmental organizations;
e) enable the private sector to compete for public contracts;
f) monitor service delivery (from both aid and budget-executed projects) for effectiveness;
g) get involved in decision making, for the general public;
h) reduce opportunities for fraudulent or corrupt use of public resources.
The publication of data could be organized in the following manner;
i. proactive publication requirement;
ii. timing and frequency of publication;
iii. formats and licences of publication;
iv. procurements and contracts;
v. stakeholder engagement.
Refer
14.2 Standard Manual
14.2
The OCDS is used to describe unique contracting processes. The first step towards publishing open
contracting data is to identify the contracting processes in the system data. A contracting process
ties together information about the different stages related to the lifespan of a contract, beginning
with planning and progressing through initiation and implementation stages accordingly, as well
as ending when a contract is either completed or closed.
CHAPTER 15 – GREEN PUBLIC PROCUREMENT
15.1 Introduction to Green Public Procurement Refer

Manual
15.1
It is a mandatory that all Government Institutions take into account environmental considerations
when procuring Goods, Works, Services and Information Systems.
Green Public Procurement (GPP) is a Public Procurement, which integrates environmental

considerations in the whole Public Procurement Process including planning and procurement and
takes into the consideration the entire life cycle of the Goods, Works or Service. In addition, it is
considered to be appropriate and one of the most effective tools seeking to reduce negative impacts
on the environment.
Refer
15.1.1 Green Public Procurement Policy Manual
15.1.1
Sri Lanka Government has taken a policy decision to adopt green procurement practice
as a mandatory requirement and to include basic premises in the new Procurement
Guidelines.
Green Procurement means procuring Goods, Works and Services that cause minimal
adverse environmental impacts. The procurement procedure itself includes human health
and environmental concerns and those safeguard measures which are to be included in
the tender documents. Specifically, Government Institutions are encouraged to avoid
single use disposable items and purchase products, Works and Services and efforts to
be given to the following points;
a) with improved re-cyclability, high re-cyclable contents, reduce packing and

greater durability and wherever possible using green material;
b) with greater energy efficiency;
c) utilizing clean technology and or clean fuel;
d) which result in reduced water consumption, and increase water harvesting;
e) which emit fewer irritating or toxic substances during installation or use;
f) which result in smaller production of toxic substances or of less toxic substance

upon disposal and sustainable garbage disposal;
g) apply wherever possible; the polluter pays principle and the producer re-
sponsibility.
Refer
15.2 Guiding Principles of GPP Manual
15.2
a) Achieving Economic, Social and Environmental Development Challenges;
b) Minimizing and or Avoiding Unnecessary purchasing/Consumption with: waste, toxicity,

habitat destruction, soil degradation, greenhouse gas emissions;
c) Maximizing Efficiency and outcome: Resource efficiency, energy efficiency, water efficiency,
value for money, competitive advantage, and the purchase of eco- labelled/environmentally
preferred products/services, education for sustainability opportunities and safety;
d) Life Cycle and Sustainable Production and Consumption Principles: GPP shall be applied
to improve productivity and eco-efficiency of the resources use and environmental quality;
e) The Polluter Pays Principle, the Precautionary Principle and the Producer Respon-
sibility (product stewardship): GPP shall be applied to reduce resource consumption to the
maximum extent possible throughout the life cycle of the product and service and to maximize
environmental and social responsibility;
f) Government Institutions Spearhead: Government Institutions shall be obligated to follow

rules and procedures for GPP and related budgeting to ensure transparency and efficient use of
public funds at all levels using value for money functional principle (VE process);
g) Environmental Accountability: GPP shall be recognized and assured as an essential means

of accountable implementation of Public Procurement; and
h) Good Governance: GPP shall ensure the Good Governance through the environmental
performance consideration in public procurement at all levels.
Refer
15.3 Introducing GPP Strategy Manual
15.3
To achieve GPP objective, the NPC and Ministry of Environment with the help of other Ministries
shall:
a) educate, initiate and stimulate of debate regarding the use of Green Public Procurement
(GPP) and Sustainable Public Procurement (SPP) in the country;
b) exchange of good practice between Procuring Entities by establishing a platform for

exchange of experiences, information and knowledge on the arrangements for GPP and
SPP;
c) elaborate and advise on, criteria and indicators to be used in Public Procurement in view
of promoting GPP and SPP;
d) foster Public Procurement planning, in order to timely integrate GPP and SPP criteria in
to the Procurement Process;
e) first starting strategy of GPP is to begin with commonly used Goods, Works and Services
and to expand the Green Procurement list;
f) encourage in getting green building or green material certification.
Refer
15.4 Role of the Ministry of Environment Manual
15.4
The Ministry in charge of the subject of environment shall establish an Inter-Agency Expert Com-
mittee on Green Public Procurement. (IAEC - GPP).
Refer
15.5 Introducing Green Specifications for Commonly Used Items Manual
15.5
IAEC may develop green specifications for commonly used products, Goods and Works using
existing certified material by local green certification organizations. Each PE shall obtain approval
for their green specifications from IAEC.
Refer
15.6 Inclusion of Green Public Procurement criteria in Procurement
Manual
Documents
15.6
For the purchase of common use items, each PE may adopt green specifications as “mandatory”
features in the bid/proposal specifications when the products are available on the market with
adequate models and quantities in supply. In this connection, “mandatory” green requirements are
specified in the Manual.
For new green specifications developed with uncertain market availability, green specifications will
be included in the bid/proposal specifications as “desirable” features.
Refer
15.7 Evaluation of Bids/Proposals with Green Criteria Manual
15.7
The Bid Evaluation Committee (BEC) will evaluate bids/proposals which can meet the mandatory
features and recommend either the lowest conforming offer (for a bid/proposal without a marking
scheme) or the highest scoring conforming offer (for a bid/proposal with a marking scheme) for
acceptance. As regards the green desirable features, they are not taken into account in the bid/
proposal evaluation except where there are two or lowest conforming offers which are identical
in all respects, the one which could meet the desirable green specification(s) could be given the
preference. These arrangements should be clearly spelt out in the Procurement Document.
In order to encourage potential suppliers to offer products that can comply with green specifica-
tions, consideration may also be given to adopting a marking scheme with appropriate weighting
for green specifications against the price offered. For this purpose, prior approval has to be obtained
from the Procurement Committee (PC). In drawing up the marking scheme, due weight should be
given to whether it will achieve the value for money objective.
BEC will keep record of the bids/proposals that can meet the “desirable” green specifications and
review the market availability of products meeting individual green specifications on a regular
basis based on the bid/proposal responses and market information, with a view to changing them
into “mandatory” or “desirable requirements attracting marks” in future bidding exercises when
circumstances warrant. Individual “desirable” green specifications without sufficient models or
quantities in supply will continue to be included as “desirable” features.
Refer
15.8 Annual Report on Green Product Purchase Manual
15.8
To monitor the green product purchasing situation, the NPC will invite the Procuring Entities to
submit a report on its last calendar year’s purchases within the first two months of each calendar
year. Procuring Entities are advised to go through the green product list and check whether the
products to be purchased are included on the list. If products to be purchased are listed, the Procuring
Entity should try to apply the recommended green specifications by making reference to the practice
mentioned in paragraphs 15.6 and 15.7 above and include the item code and green specification
code as recommended by the IAEC in the common use item list. In parallel, the Procuring Entities
should consolidate the information of the product ID, purchase values and the information on
whether green specifications are adopted or not and whether the final purchases meet such green
specifications for incorporation into the annual report to NPC.
15.9 Cost Implication

Procuring Entities should absorb any additional cost incurred in procuring Goods, Works and Ser-
vices with green specifications. While costs of these products and services may in some cases be
higher than those without green features, it is expected that the Government’s initiative of taking
the lead on Green Procurement would facilitate the development of the relevant market and the
prices of products meeting green specifications would be lowered over time.
Procuring Entities shall prepare life cycle cost in case of procuring Goods with the life over three
years and it is mandatory in the case of Work.
CHAPTER 16 – PUBLIC PRIVATE PARTNERSHIPS (PPP)
16.1 Public Private Partnerships (PPP)

PPP is broadly defined as a long-term contract between a private investor and Government Entity
for providing a public asset or service, in which the private investor bears significant risks and
management responsibility.
The private investor may finance the cost of the project or the contract procured under PPP
arrangement Build- Own- Operate (BOO), Build-Operate-Transfer (BOT) and Build-Own-
Operate-Transfer (BOOT), Design-Build-Own-Operate-Transfer (DBOOT) concessions or similar
type or private arrangement if the selection is consistent with the NPC core procurement principles.
Democratic Socialist Republic of Sri Lanka
PROCUREMENT GUIDELINES
2018
Selection and Employment of Consultants
NATIONAL PROCUREMENT COMMISSION

CONTENTS
DEFINITIONS ................................................................................................................................................. 6
ACRONYMS .................................................................................................................................................... 8
CHAPTER 1 – GENERAL ............................................................................................................................. 9
1.1 Purpose .................................................................................................................................................... 9
1.2 Objectives ................................................................................................................................................ 9
1.3 Scope of Application ............................................................................................................................... 9
1.3.1 Scope of Consultancy Services ...................................................................................................... 10
1.3.2 Guidelines of Foreign Funding Agencies....................................................................................... 10
1.4 Ethics in Selection and Employment of Consultants ............................................................................ 11
1.4.1 Confidentiality ................................................................................................................................ 11
1.4.2 Fraud and Corruption ..................................................................................................................... 11
1.4.3 Conflict of Interest.......................................................................................................................... 12
1.4.4 Unfair Competitive Advantage ...................................................................................................... 14
1.5 Laws Applicable to Procurement Actions ............................................................................................. 14
1.6 Consulting Services Leading to Downstream Procurement .................................................................. 14
CHAPTER 2 - GOVERNANCE OF PROCUREMENT ACTIONS......................................................... 14

2.1 National Procurement Commission (NPC) ........................................................................................... 15
2.2 Roles and Responsibilities of Chief Accounting Officer and ................................................................ 15
Accounting Officer (CAO and AO) ............................................................................................................. 15
2.3 Roles and Responsibilities of Procuring Entity (PE) ............................................................................ 15
2.4 Appointment of Consultant Selection Committee (CSCs)and Payments for CSCs Members .............. 16
2.4.1 Cabinet Appointed Consultants Selection Committees (CCSC)……………………………...........16
2.4.2 Ministry Consultants Selection Committee (MCSC)..................................................................... 16
2.4.3 Department Consultants Selection Committee (DCSC) ................................................................ 16
2.4.4 Project Consultants Selection Committee (PCSC) ........................................................................ 16
2.4.5 Payments for Members of Comultants Selection Committees (CSCs), Staff Officers and Other Officers
assisting in the Procurement Process.............................................................................................. 16
2.5 Authority Limits for determination of Contract Award.......................................................................... 17
CHAPTER 3 – SELECTION PROCESS AND SELECTION METHODS OF CONSULTANCY

FIRMS AND INDIVIDUAL CONSULTANTS................................................................. 17
3.1 Methods for the Selection of Consultancy Firm.................................................................................... 17
3.1.1 Quality and Cost Based Selection (QCBS) .................................................................................... 18
3.1.2 Quality Based Selection (QBS)...................................................................................................... 18
3.1.3 Fixed Budget- based Selection (FBS) ............................................................................................ 19
3.1.4 Least Cost Selection (LCS) ............................................................................................................ 19
3.1.5 Consultant’s Qualification-based Selection (CQS) ........................................................................ 20
3.1.6 Direct Selection - Single Source Selection (SSS) .......................................................................... 20

3.1.7 Selection of Particular Type of Consultants ................................................................................... 21
3.1.8 Preparation of Terms of Reference (TOR) ..................................................................................... 22
3.1.9 Preparation of Long List ................................................................................................................ 23
3.1.10 Preparation of Shortlist ................................................................................................................ 23
3.2 Selection of Individual Consultants....................................................................................................... 23
3.2.1 Selection of Individual Consultants ............................................................................................... 23
3.2.2 Terms of Reference (TOR) for the Selection of Individual Consultants........................................ 24
3.2.3 Advertising ..................................................................................................................................... 24
3.2.4 Selection on Competitive Basis ..................................................................................................... 24
3.2.5 Single Source Selection (SSS) ....................................................................................................... 24
3.2.6 Terms of Appointment.................................................................................................................... 25
CHAPTER 4 - PROCUREMENT PLANNING.......................................................................................... 25

4.1 Procurement Planning ........................................................................................................................... 25
4.1.1 Master Procurement Plan (MPP) ................................................................................................... 26
4.1.2 Procurement Plan (PP) ................................................................................................................... 26
4.1.3 Procurement Time Schedule (PTS) ................................................................................................ 26
4.2 Publication of Procurement Plan and Time Frame for Procurement Actions ....................................... 27
4.3 Total Cost Estimate (TCE) of the Procurement ..................................................................................... 27
4.3.1 Approving of Total Cost Estimate (TCE)....................................................................................... 27
4.3.2 Update of Total Cost Estimate (TCE) ............................................................................................ 28
4.4 Expression of Interest ............................................................................................................................ 28
4.4.1 Publication of Request for Expression of Interest (REOI)............................................................. 28
4.4.2 Content of the REOI....................................................................................................................... 28
4.4.3 Criteria for Short-listing of Consultants Firms .............................................................................. 28
4.4.4 Criteria for Short-listing of Individual Consultants ....................................................................... 29
CHAPTER 5 - REQUEST FOR PROPOSAL (RFP) DOCUMENTS ...................................................... 29

5.1 Preparation of Draft Request for Proposal (RFP) Document ................................................................ 29
5.2 Contents of RFP Document ................................................................................................................... 29
5.3 Standard Request for Proposal (SRFP) Document ................................................................................ 30
5.4 Request for Proposals (RFP’s) Publication ........................................................................................... 30
5.5 Letter of Invitation (LOI) ...................................................................................................................... 30
5.6 Instructions to Consultants (ITC) .......................................................................................................... 31
5.7 Eligibility of Consultants ....................................................................................................................... 31
5.8 Equal Treatment for Foreign and National Consultants ........................................................................ 31
5.9 Proposal Validity Period ..............................................................................................................................31

5.10 Time for Submission of Proposals .............................................................................................................32
5.11 Clarity of RFP Documents.........................................................................................................................32
5.12 Clarifications and Amendments to RFP.....................................................................................................32
5.13 Association between Consultants ..............................................................................................................33
5.14 Value Added Tax ........................................................................................................................................34
5.15 Evaluation Criteria and Qualification Requirements .................................................................................34
5.16 Standard Forms of Contract.......................................................................................................................34
5.16.1 Draft Contract to be Issued ................................................................................................................34
5.17 Conditions of Contract ..............................................................................................................................35
5.18 Price Adjustment .......................................................................................................................................35
5.19 Payment Provisions ...................................................................................................................................35
5.20 Advance Payment ......................................................................................................................................35
5.20.1 Performance Security .........................................................................................................................35
5.21 Dispute Resolution ....................................................................................................................................36
5.22 The Law of Contract ..................................................................................................................................36
5.23 Terms of Reference (TOR) ........................................................................................................................36
5.24 Technical and Financial Proposals Standard Forms ..................................................................................36
CHAPTER 6–PROPOSAL PROCESS ..............................................................................................................37

6.1 Issuance of RFP Documents ........................................................................................................................37
6.2 Proposal Preparation Period ........................................................................................................................37
6.3 Submission/Receipt of Proposals ................................................................................................................37
6.4 Rejection of Late Proposals .........................................................................................................................37
6.5 Public Opening of Proposals .......................................................................................................................38
6.6 Procedure of Opening Financial Proposals .................................................................................................38
CHAPTER 7–EVALUATION OF PROPOSALS .............................................................................................39

7.1 General ........................................................................................................................................................39
7.2 Confidentiality .............................................................................................................................................39
7.3 Services of Outside Expert/s for Evaluation of Proposals...........................................................................39
7.4 Time Frame for Proposal Evaluation ...........................................................................................................39
7.5 Extension of Proposal Validity ....................................................................................................................39
7.6 Original Proposal to be Evaluated ...............................................................................................................40
7.7 Purpose and Stages of Proposal Evaluation ................................................................................................40
7.8 Evaluation of Technical Proposal ................................................................................................................40
7.8.1 CSC to agree on the Rating System in Advance ..................................................................................40
7.8.2 Evaluation to be Carried out by CSC ...................................................................................................41

7.8.3 Strengths and Weaknesses of Each Proposal to be Recorded ..............................................................41
7.8.4 Evaluation Based on Disclosed Criteria...............................................................................................41
7.9 Technical Proposal Evaluation Form ...........................................................................................................42
7.10 Clarifications from Consultants During Evaluation ..................................................................................42
7.11 Opening of Financial Proposals .................................................................................................................42
7.12 Evaluation of Financial Proposals .............................................................................................................43
7.13 Negotiation with the Highest Ranked Consultant .....................................................................................43
7.13.1 Negotiation in case of QCBS, FBS and LCS .....................................................................................44
7.13.2 Negotiation in Case of QBS, CQS and SSS.......................................................................................45
7.14 Combined Evaluation Report ....................................................................................................................46
7.15 Rejection of all Proposals Received ..........................................................................................................46
CHAPTER 8 - AWARD OF CONTRACT .........................................................................................................47

8.1 Recommendation/Determination of Contract Award ..................................................................................47
8.2 Communication to all Consultants of the Intention to Award Contract.......................................................47
8.3 Debriefing ....................................................................................................................................................48
8.4 Standstill Period...........................................................................................................................................48
8.5 Appeals against Contract Awards Recommended by the CCSC/MCSC/DCSC or PCSC ..........................48
8.5.1 Appointment of Procurement Appeal Boards (PABs), Reporting and Operational Responsibilities
and Payments for PAB Members .................................................................................................................. 49
8.5.2 PABs for Cabinet level Procurements related to CCSC and CANC .................................................... 50
8.5.3 MPABs for Ministry level Procurements related to MCSC ................................................................. 50
8.5.4 DPAB/PPAB for Department/Project level Procurements related to DCSC/PCSC............................. 50
8.5.5 Payments for Members of Procurement Appeal Boards (PABs) and Staff Officers and Other Officers
Assisting in the Procurement Appeals Process .............................................................................................50
8.6 Contract Award Procedure ...........................................................................................................................51
8.7 Formal Contract ...........................................................................................................................................51
8.8 Publication of Contract Award.....................................................................................................................51
CHAPTER 9 - CONTRACT ADMINISTRATION ..........................................................................................51

9.1 Contract Administration ..............................................................................................................................51
9.2 Variation of Contract/Change Requests .......................................................................................................51
9.3 Extension of Time........................................................................................................................................52
9.4 Debarring or Blacklisting of Defaulting Consultants ..................................................................................52
9.5 Supervising the Consultants ........................................................................................................................52
9.6 Types of Contracts .......................................................................................................................................53
DEFINITIONS
Unless the context otherwise requires the Terms whenever used in these Guidelines have the following meanings:
Consultant A variety of legally and financially autonomous public and private entities,
joint ventures, or individuals (not engaged by the PE as an employee) that
provide services of an advisory or professional nature.
Consulting Service Covers a range of services that are of an advisory or professional nature
and are provided by consultants such as policy advice, institutional
reforms, capacity building, communications consultants, management
consultants, engineering services, quantity surveying, architectural
services, construction supervision, feasibility studies, pre-investment
studies, finance and accounting services, procurement services, social and
environmental studies, identification, preparation, and implementation of
projects, project management, training and development.
Consultants Selection Obtaining by Procuring Entities of Consulting Services by the most

appropriate means, with public funds or funds from any other source
whether local or foreign received by way of loans, grants, gifts, donations,
contributions and similar receipts.
Contract Price Means the amount of money that is to be paid under a contract to render a
service. Contract Price is stated in the Notification of Award and thereafter
as adjusted in accordance with the provisions of the Contract. In some
specific cases, the Contract Price is fixed using agreed price formula as
stipulated in a contract.
Foreign Funding Agency Means any multi-lateral or bi-lateral agency which has entered or intends
to enter into an agreement with the Government of Sri Lanka for financing
the Government.
Foreign Funded Project Means a project fully or partially financed by a Foreign Funding Agency.
Fraud and Corruption The sanctionable practices of corruption, fraud, collusion, coercion and
obstruction.
Goods Means all commodities, raw materials, products, plant and machinery,
equipment, Livestock, and other physical objects of every description,
whether in solid, liquid, gaseous or living form.
Government Institutions Includes a ministry, a government department, a public corporation, a local

authority, any business or other undertaking vested in the Government and
a company registered or deemed to be registered under the Companies
Act, No. 7 of 2007, in which the Government, a public corporation or any
local authority holds more than 50% of the shares.
Guidelines These Guidelines are for Selection and Employment of Consultants.
In Writing Means communicated or recorded in written form. It includes, for example:

mail, e-mail, fax or communication through an electronic procurement
system (provided that the electronic system is accessible, secure, ensures
integrity and confidentiality, and has sufficient audit trail features).
Master Procurement Means a document prepared by the Procurement Entity, listing all the
Plan procurements envisaged to be carried out during a period of three years
in medium term budgeting perspectives, with tentative dates to carry out
such procurement.
Non-consulting Services Services which are not Consulting Services. Non-Consulting Services are
normally bid and contracted on the basis of performance of measurable
outputs, and for which performance standards can be clearly identified and
applied. Examples include: drilling, aerial photography, satellite imagery,
mapping, electricity water supply, cleaning, security, cargo clearance, and
other utility services and similar operations.
Procuring Entity Means a Government Institution, which the particular procurement is

meant for.
Procurement Action Means any action in furtherance of the selection and Employment of
Consultants.
Procurement Means, for purposes of this Guideline the obtaining by Procuring Entities
Process Consulting Services, by the most appropriate means, with public funds or
funds from any other source whether local or foreign received by way of
loans, grants, gifts, donations, contributions and similar receipts.
Works A category of Procurement that refers to divisional construction,

decoration, repair, retrofitting, refurbishment, renovation, rehabilitation,
demolition, restoration, maintenance of buildings, infrastructure, civil
works structures and other associated activities.
ACRONYMS
AO - Accounting Officer
CAO - Chief Accounting Officer
CCSC - Cabinet Appointed Consultant Selection Committee
CQS - Consultant’s Qualification Based Selection
CSC - Consultant Selection Committee
CV - Curriculum Vitae
DCSC - Department Consultant Selection Committee
e-GP - e-Government Procurement
EOI - Expressions of Interest
FBS - Fixed Budget Selection
FFA - Foreign Funding Agency
GOSL - Government of Sri Lanka
HD - Heads of Departments
ICB - International Competitive Bidding
LCS - Least Cost Selection
LKR - Sri Lanka Rupees
MCSC - Ministry Consultant Selection Committee
MPP - Master Procurement Plan
NCB - National Competitive Bidding
NPC - National Procurement Commission
PCSC - Project Consultant Selection Committee
PE - Procuring Entity
PP - Procurement Plan
PTS - Procurement Time Schedule
QBS - Quality Based Selection
QCBS - Quality and Cost Based Selection
REOI - Request for Expressions of Interest
RFP - Request for Proposal
SSS - Single Source Selection
TCE - Total Cost Estimate
TOR - Terms of Reference

CHAPTER 1 – GENERAL
Refer
1.1 Purpose Manual
1.1
The purpose of these Guidelines is to establish governing principles and procedures to ensure
value for money (VfM), in an efficient, fair, equitable, transparent, competitive and cost-effective
selection process by the Government Institutions for Selection and Employment of Consultants.
1.2 Objectives
The Procurement Process should ensure:
(a) high level of integrity across the Procurement Process and beyond following the principles
of transparency, efficiency, accountability, equal treatment, rule of law, citizen engagement,
anti-corruption, integrity, and anti-fraudulent practices;
(b) understanding and communication of clear requirements of needs and objectives;
(c) selection of fit for purpose procurement method and contractual arrangements based on
the nature, context, complexity, risk and value of the procurement;
(d) appropriate specification or scope of work of the requirements;
(e) the need for high quality and standard of services;
(f) adhering to prescribed standards, rules, regulations and good governance;
(g) compliance with local laws and regulations and international obligations;
(h) ensuring appropriate evaluation criteria with transparency and consistency in the evaluation
and selection procedure that allow timely, cost effective, responsive procedure acceptable
to the Government of Sri Lanka and/or Foreign Funding Agencies;
(i) enhancing stakeholders trust in the entire Procurement Process;
(j) Promotion and development of local Consultant; and
(k) Efficient and justified use of public funds.
Refer
1.3 Scope of Application Manual
1.3
These Guidelines are applicable to all Consulting Services carried out by the Government
Institutions.
These Guidelines repeal, replace or otherwise supersede all previous Procurement Guidelines,
Manuals and Circulars on the subject of selection and employment of Consultants.
These Guidelines will take effect and come into operations on a date as specified by the NPC
(Effective Date) which shall be within 30 days after the approval of these Guidelines by the
Parliament.
Details such as procedures, authority limits, threshold limits, explanations and time schedules
etc. which are relevant to provisions of these Guidelines are stipulated in the Procurement
Manual which shall be read in conjunction with the Guidelines. These details will be updated
periodically by NPC.
The consultancy activities include entire process of selection of Consultants, preparation of

work-plans and procurement plan for consultancy service procurement, implementation of
procurement plan, service procurement, monitoring and evaluation of Consultant’s performance,
disbursement under Consultant’s contracts, preparation and maintenance of financial statements
and service accounts, and conduct of audit. The scope of this document is to set out a guideline
covering the processes and operating procedures for the activities described above.
The Guidelines are designed to ensure that procedures allow for timely, cost-effective,
responsive, fair and transparent procurement of consultancy services.
1.3.1 Scope of Consultancy Services

(a) Covers a range of services that are of an advisory or professional nature and are
provided by Consultants.
(b) Consultancy Services include formulation of long, medium and short-term

strategies and selection of national and international advisors and Consultants
to conclude the assignments in a manner that all targets are ultimately achieved.
The type of Consulting Services covered in these Guidelines include but not
limited to policy advice, institutional reforms, capacity building, communications
consultants, management consultants, engineering services, architectural
services, quantity surveying services, value management services, construction
supervision, feasibility studies, pre-investment studies, finance and accounting
services, technical auditing, procurement services, customized software design
and development services, social and environmental studies, identification,
preparation, and implementation of projects, project management, training and
development etc.
Refer
1.3.2 Guidelines of Foreign Funding Agencies Manual
1.3.2
In the case of Foreign Funded Projects, if the Foreign Funding Agency mandates the
use of Procurement Regulations/Guidelines of such funding agency, such funding
agency Regulations/Guidelines shall prevail over these Guidelines to the extent
applicable.
In the event of a conflict between these Guidelines and that of the funding agency, the
funding agency Regulations/Guidelines shall take precedence over these Guidelines.
In the event these Guidelines specify additional steps, not specified by the Guidelines
of the relevant funding agency, the PE shall bring to the notice of the Funding Agency
of those and shall apply those provisions with the concurrence of that funding Agency.
Notwithstanding the above, the PE shall not apply Guidelines of any funding agency,
if the funding is loan/credit financing, where substantial achievement of the objectives
as specified in Clause 1.2 above cannot be achieved.
Refer
1.4 Ethics in Selection and Employment of Consultants Manual
1.4
Parties associated with Procurement Process including officials of the NPC, the Treasury, Pro-
curing Entity, Members of the Consultant Selection Committees, as well as Consultants and
any of their personnel should observe the highest standards of ethics during the Procurement
Process and execution of such contracts.
Ethics would include standards of conduct and norms of behavior as sought to be defined and
imposed by relevant laws, regulations, and codes generally applicable to such persons in rela-
tion to their general discharge of duties and in relation to their activities linked to the relevant
Procurement Process.
Refer
1.4.1 Confidentiality Manual
1.4.1
All parties associated with procurement activities shall maintain strict confidentiality
throughout the process except to the extent as may be mandated by law
Refer
1.4.2 Fraud and Corruption Manual
1.4.2
The GOSL requires that officials, bidders, contractors, Consultants, and suppliers;
any sub-contractors, service providers; any agents; and any of their personnel ob-
serve the highest standards of ethics during the Procurement Process and contract
execution and refrain from Fraud and Corruption. In case of FFP, parties associated
with any step of the Procurement Processes shall adhere to the FFA’s Guidelines in
addition to the GOSL requirements.
For the purpose of this provisions, the terms set forth below as follows;
a) Corrupt Practice
“Corrupt Practice” means the offering, giving, receiving, or soliciting, directly or

indirectly, anything of value to influence improperly the actions of another party;
b) Fraudulent Practice
“Fraudulent Practice” means any act or omission, including a misrepresentation,

that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a
financial or other benefit or to avoid an obligation;
c) Collusive practice
“Collusive Practice” means an arrangement between two or more parties designed

to achieve an improper purpose, including influencing improperly the actions of
another party. Improper purpose would include any attempt to influence competition
and/or the price;
d) Coercive Practice
“Coercive Practice” means impairing or harming, or threatening to impair or harm,

directly or indirectly, any party or the property of the party to influence improperly
the actions of a party;
e) Obstructive Practice
“Obstructive Practice” means deliberately destroying, falsifying, altering, amending

or concealing of evidence materials to the investigation or making false statements
to investigators / auditors in order to materially impede an investigation / audit into
allegation of a corrupt, fraudulent, collusive or coercive practice; and/or threatening,
harassing or intimidating any party to prevent it from disclosing its knowledge of
matters relevant to the investigation/audit.
Refer
1.4.3 Conflict of Interest Manual
1.4.3
The GOSL requires that officials, firms and any other individuals involved in Pro-
curement Process shall not have a conflict of interest. Officials shall declare that
they shall remain without a conflict of interest throughout the process and deal with
any perceived conflicts of interest. Should such a compromising situation arise, the
official shall declare his/her interest and disassociate himself/herself from the process.
The NPC requires that Consultants provide professional, objective, and impartial
advice and at all times hold the PE’s interest’s paramount, without any consider-
ation for future work, and that in providing advice they avoid conflicts with other
assignments and their own corporate interests. Consultants shall not be hired for
any assignment that would be in conflict with their prior or current obligations to
other clients, or that may place them in a position of being unable to carry out the
assignment in the best interests of the PE. Without limitation on the generality of the
foregoing, Consultants shall not be hired under the circumstances set forth below:
a) Conflict between consulting activities and procurement of Goods, Works,

or Non- Consulting Services: a firm that has been engaged by the PE to
provide Goods, Works, or Non-Consulting Services for a project; or, where
those Consulting Services were provided by any affiliate (that directly or
indirectly controls, is controlled by, or is under common control with that
firm) or associate, shall be disqualified from providing Consulting Services
resulting from or directly related to those Goods, Works, or Non-Consulting
Services;
b) A firm for the preparation or implementation of a project, or any affiliate

(that directly or indirectly controls, is controlled by, or is under common
control with that Consulting firm), shall be disqualified from subsequently
providing Goods, Works, or Non-Consulting Services resulting from or
directly related to the Consulting Services for such preparation or imple-
mentation;
c) Conflict among consulting assignments: neither a Consultant (including its

personnel and sub-consultants), nor any affiliate (that directly or indirectly
controls, is controlled by, or is under common control with that Consultant),
shall be hired for any assignment that, by its nature, creates a conflict of
interest with another assignment of the Consultants’; and
d) Relationship with PE’s staff: consulting firms (including their experts

and other personnel, and sub-consultants) that have a close business or
family relationship with a professional staff of the PE or any other party
representing or acting on behalf of the PE, who are directly or indirectly
involved in any part of: (i) the preparation of the TOR for the assignment,
(ii) the selection process for the contract, or (iii) the supervision of such
contract, may not be awarded a contract, unless the conflict stemming
from this relationship has been resolved in a manner acceptable to the PE
throughout the selection process and the execution of the contract.
1.4.4 Unfair Competitive Advantage

Fairness and transparency in the Consultant selection process require that firms or
their affiliates or Individual Consultants competing for a consulting assignment do
not derive a competitive advantage from having provided Consulting Services relat-
ed to it. To that end, the PE shall make available to all the short-listed Consultants,
together with the request for proposals, all information that would in that respect
give a Consultant a competitive advantage.
Officials shall refrain from compromising the Code of Ethics by accepting

inappropriate gifts and hospitality at any stage of Procurement Process. Consultants
shall be disqualified from the selection process if found offering any gift or
inducement which may have an effect of influencing a decision or impairing the
objectivity of an official.
1.5 Laws Applicable to Procurement Actions

The laws applicable to Procurement Actions shall be the Laws of the Democratic Socialist
Republic of Sri Lanka.
Refer
1.6 Consulting Services Leading to Downstream Procurement Manual
1.6
The PE may carry out the selection of a Consultant for the Consulting Services that will lead
to downstream procurement/s such as subsequent contract awards for construction activities
(non-consultancy component), following a Consulting Services for design, engineering
and costing and project management of construction works (consultancy component) using
appropriate option.
CHAPTER 2 - GOVERNANCE OF PROCUREMENT ACTIONS
The governance of procurement Actions shall be managed by the procuring entities through clear and transparent lines of
authority to confirm accountability, with clear definitions of the roles and responsibilities of each party.
All procurements related to consultancy services shall be carried out in accordance with Selection and Employment of
Consultants Guidelines and Manuals, 2018 announced by National Procurement Commission (NPC).
Refer
2.1 National Procurement Commission (NPC) Manual
2.1
The National Procurement Commission (NPC) as established under the Chapter XIX B of
the Constitution of Democratic Socialist Republic of Sri Lanka is the sole authority for the
governance of all procurement activities by the Government Institutions of GOSL to whom
these Guidelines apply. Any clarifications on the provisions of these Procurement Guidelines
and related documents shall be sought from the NPC.
2.1.1 Role of the NPC

Role of the NPC is to ensure formulation of procurement policy, Guidelines and,
practices, monitoring and investigation of Procurement Actions of procuring entities to
guarantee implementation of such policies, Guidelines and best practices by procuring
entities and related Government Institutions, assessment of procurement capacity of
Government Institutions, procurement capacity building and reporting to appropriate
authorities on procurement performance of procuring entities and individuals.
2.2 Roles and Responsibilities of Chief Accounting Officer and Account-

ing Officer (CAO and AO)
Responsibility of the entire Procurement Process from making pre-procurement arrangements
to contract execution shall be vested with the Secretaries of the respective Line Ministries, who
are deemed to be the Chief Accounting Officers (CAOs) of such Ministries and the Accounting
Officers (AOs) of respective Departments /Institutions.
If there is no Line Ministry for the particular Institution, the responsibility of the entire Pro-
curement Process including contract execution shall be vested with the relevant Head of the
Institution.
Refer
2.3 Roles and Responsibilities of Procuring Entity (PE) Manual
2.3
Secretaries to the Line Ministries, Heads of Departments /Institutions/Agencies and Project

Directors together with the assistance of the Procurement Specialist, Consultants and other
relevant staff shall be responsible for the following activities listed under:
1. Pre-Procurement process
2. Procurement process
3. Post Procurement process

Refer
2.4 Appointment of Consultant Selection Committee (CSCs)and Payments
Manual
for CSCs Members
2.4
The members of the CSCs are jointly and severally responsible for entire Procurement Actions.
The following CSCs shall be appointed as per the respective authority limits as specified under
Guideline 2.5 from time to time;
 Cabinet Appointed Consultant Selection Committee (CCSC)
 Ministry Consultant Selection Committee (MCSC)
 Department Consultant Selection Committee (DCSC)
 Project Consultant Selection Committee (PCSC)
Refer
2.4.1 Cabinet Appointed Consultants Selection Committees (CCSC) Manual
2.4.1
Under delegated authority by the Cabinet of Ministers, the CAO shall appoint CCSCs
to undertake high value consultancy assignments.
Refer
2.4.2 Ministry Consultants Selection Committee (MCSC) Manual
2.4.2
The CAO shall appoint the MCSC.
Refer
2.4.3 Department Consultants Selection Committee (DCSC) Manual
2.4.3
The CAO shall appoint the DCSC.

Refer
2.4.4 Project Consultants Selection Committee (PCSC) Manual
2.4.4
The CAO shall appoint the PCSC.
2.4.5 Payments for Members of Consultants Selection Committees Refer

(CSCs), Staff Officers and Other Officers Assisting in the Manual
Procurement Process 2.4.5
Members of the Consultants Selection Committees and alternate members shall

be remunerated for participation in the Procurement Process. The members of the
Consultants Selection Committees and the officers to whom specific responsibilites
are assigned under these Guidlines shall be remunerated, with emphasis to their
performance.
Payment of remunerations shall be based on performance of such committees and

individuals and the eligible payments shall determined by the NPC, in consultation
with the General Treasury.
Refer
2.5 Authority Limits for determination of Contract Award Manual
2.5
Selection and Employment of Consultant is administered through different levels of Consul-
tants Selection Committees (CSC) with varying financial thresholds to make recommendation/
determination of contract awards.
Limits of authority to make recommendation/determination of contract award and thresholds
shall be decided from time to time and shall be communicated by making amendments to the
Consulting Services Manual or circulars issued under these Guidelines by the NPC.
Consultants Selection Committees shall be appointed depending on the Total Cost Estimate
(TCE) of the relevant procurement.
In the event the substantially responsive lowest evaluated bid exceeds the threshold limit of
the relevant Consultant Selection Committee, it shall be referred to the relevant appointing
authority to take a decision.
CHAPTER 3 – SELECTION PROCESS AND SELECTION METHODS OF

CONSULTANCY FIRMS AND INDIVIDUAL CONSULTANTS
The selection method shall achieve the objectives of VfM, fairness, clarity, fit-for-purpose, transparency and confidentiality.
Hence the appropriate method of selection is related to the nature, size, complexity, likely impact of the assignment, and the
technical and financial considerations.
A consultancy firm shall be selected in obtaining the services required rather than getting the service done by one or more
individuals for assignments for which:
a. coordinated input of team of personnel with different expertise are required; and
b. coordination, administration or collective responsibility is important.
In other cases, PE may select Individual Consultant/s (IC). The selection method of Individual Consultant is outlined in
section 3.2 below.
Refer
3.1 Methods for the Selection of Consultancy Firm Manual
3.1
The choice of the appropriate method of selection is related to the factors mentioned above. It
is therefore necessary to carefully define the assignment, particularly the Terms of reference
including objective and the scope of the services, before deciding on the selection method.
The following selection methods shall be determined as appropriate by the PE prior to issuance
of the request for proposals from prospective Consultants.
a) Quality and Cost Based Selection (QCBS);
b) Quality Based Selection (QBS);
c) Fixed Budget Selection (FBS);
d) Least Cost Selection (LCS);
e) Consultant’s Qualifications based Selection(CQS);
f) Direct Selection-Single Source Selection (SSS); and
g) Selection of particular types of Consultants
Refer
3.1.1 Quality and Cost Based Selection (QCBS) Manual
3.1.1
QCBS is a competitive process among Shortlisted consulting firms under which the
selection of the successful firm takes into account the quality of the Proposal and the
cost of the services. The request for proposals document shall specify the minimum
score for the technical Proposals. The relative weight to be given to the quality and cost
depends on the nature of the assignment. Weightage for quality part of the proposal is
always higher than the financial part. Among the Proposals that are responsive to the
requirements of the request for proposals document and are technically qualified, the
Proposal with the highest combined (quality and cost) score is considered the Most
Advantageous Proposal.
Preferred method of selection of Consultancy firm shall be QCBS. Other methods shall
be used only under the circumstances described against such selection methods.
The QCBS method is appropriate when:

a) the scope of work can be precisely defined;
b) the TOR are well specified and clear; and,
c) PE and the Consultants can estimate with reasonable accuracy the personnel
time as well as the other inputs required of the Consultants.
Refer
3.1.2 Quality Based Selection (QBS) Manual
3.1.2
QBS is a method based on evaluating only the quality of the technical proposals and the
subsequent negotiation of the financial proposal and the contract award to the Consul-
tancy firm who submitted the highest ranked technical proposal.
When QBS is used, the proposal quality is evaluated without using cost as an evaluation
criterion. The RFP will request firms to submit both technical and financial proposals
at the same time, but in separate envelops (single stage – two envelope system). The
financial proposal of only the highest technically qualified firm is open and evaluated.
The Procuring Entity and the related firm shall discuss the work plan, the TOR, and
financial proposal, etc. of the contract. After successful completion of technical and
financial negotiations with the highest ranked firm, the contract will be awarded. The
rest of financial proposals will be returned unopened to the unsuccessful firms. QBS is
appropriate for the following types of assignments:
a) complex or highly specialized assignments for which it is difficult to define

precise TOR and the input required from the firm, and for which the Procuring
Entity expects the firm to demonstrate innovation in its Proposals;
b) assignments that have a high downstream impact; and
c) assignments that can be carried out in substantially different ways, so that
Proposals will not be comparable.
Refer
3.1.3 Fixed Budget- based Selection (FBS) Manual
3.1.3
Like QCBS, FBS is a competitive process among Shortlisted consulting firms under
which the selection of the successful firm takes into account the quality of the Proposal
and the cost of the services. In the request for proposals document, the cost of services
is specified as a fixed budget that shall not be exceeded.
FBS is appropriate when:
a) the type of Consulting Service required is simple and TOR can be precisely
defined;
b) the time and personnel inputs can be accurately assessed to ensure the budget
is reasonably estimated and set;
c) the budget is sufficient for the firm to perform the assignment.
d) the budget is fixed and cannot be exceeded.
Evaluation of all technical proposals shall be carried out first. The Firms securing less
than the minimum marks shall be rejected, and the financial proposals of the rest shall
be opened in public.
Proposals of which evaluated financial proposal exceed the indicated fixed budget shall
be rejected.
The technical Proposal with the highest technical score that meets the fixed budget
requirement, be selected and invited to finalize the contract.
Refer
3.1.4 Least Cost Selection (LCS) Manual
3.1.4
Similar to QCBS, LCS is a competitive process among Shortlisted consulting firms under
which the selection of the successful firm takes into account the quality of the Proposal
and the cost of the services.
Least–cost selection (LCS) is generally appropriate for selecting Consultants for smaller
value assignments, of a standard or routine nature where well–established practices and
standards exist.
The RFP shall define the “minimum” qualifying mark for the “quality” and request the
firms to submit at the same time technical and financial proposals in separate envelopes.
Technical proposals will be opened first and evaluated. Those securing less than the
minimum qualifying mark specified in the RFP will be rejected, and the financial
proposals of the rest will be opened in public. The firm with the lowest evaluated cost
shall then be selected and invited to finalize the contract.
Refer
3.1.5 Consultant’s Qualification-based Selection (CQS) Manual
3.1.5
CQS is appropriate for;
a) smaller value assignments; or

b) an emergency situation; and
c) preparation and evaluation of full-fledged competitive Proposals is not justified.
CQS is appropriate for higher value assignments only when:
d) satisfies the condition given under ‘c’ above; and
e) highly specialized expertise is required for the assignment: and
f) few Consultants are qualified.
The PE shall request expressions of interest (REOI), by attaching the TOR to the REOI.
Only a selected Consultancy firms shall be requested to provide information about their
relevant experience and qualifications. Out of the long list received in response to the
REOI, a shortlist of minimum of three firms shall be prepared and the PE will select
the firm with the best qualifications and relevant experience and invite it to submit its
combined technical and financial Proposals for negotiations.
Should the negotiations failed the PE shall obtain a combined proposal from the next
ranked firm until an agreement is reached.
Advertisement of REOI is not mandatory.
Refer
3.1.6 Direct Selection - Single Source Selection (SSS) Manual
3.1.6
Generally, Single Source Selection of consultancy firms does not provide the benefits
of competition in regard to quality and cost, lacks transparency in selection, and could
encourage unacceptable practices. Therefore, single source selection shall only be used
in exceptional cases.
While going through this method of selection, the PE will provide well described and
evidence based justifications to ensure economies of scales, efficiency and value for
money. The justifications shall be examined at an appropriate level for making the
decision.
SSS will be used only in exceptional cases, where it provides clear advantage over
competition in the following cases;
SSS may be appropriate under the following circumstances:

a) an existing contract for Consulting Services, may be extended for additional
Consulting Services of a similar nature, if it is properly justified; no advantage
may be obtained by competition; and the prices are reasonable. Extended ser-
vices shall not be more than 25% of the existing contract; or
b) for Consulting Services which are natural continuation of previous assignment

carried out by the same firm within the last 12 months, where it was selected
on competitive basis for the first assignment and where continuity of technical
services is unavoidable and if performance has been satisfactory in the previous
assignment(s). Extended continuation services shall not be more than 50% of
the previous assignment;
c) in cases of an emergency situation where a rapid selection is essential;
d) for smaller value assignments;
e) when only one firm is qualified, or has experience of exceptional worth for the
assignment;
f) specific recommendation shall be obtained from the relevant CSC;
g) to obtain necessary prior approval for the SSS justification with all other relevant
details in Writing from the CAO, concerned on recommendation by a CSC;
h) for Foreign Funded Projects this selection method shall be used only with the
prior approval of the relevant funding agency;
In all instances of direct selection, the Procuring Entity shall ensure fairness and equity,
and shall have in place procedures to ensure that:
i. the prices are reasonable and consistent with the market rates for services of a
similar nature; and
ii. the required Consulting Services are not split into smaller- size procurements
to avoid competitive processes.
Refer
3.1.7 Selection of Particular Type of Consultants Manual
3.1.7
Under special circumstances as described below Consultants may be selected.
Consultancy Works by State Universities and State Research &

3.1.7.1
Development (R&D) Centers
With the objective of promoting active institute/industry links/partnerships, research
based consultancy assignments directed towards improvements of efficiency and
productivity of the local industries and helping to realize the country’s socio-economic,
environmental, human development policies, may be directly assigned to state universities
and state R&D centers. In such situations, PE shall follow the process using direct
selection method. The fees billed for permanent staff by the university or R&D center
in no case should exceed twice the basic salary of such staff. When such Consulting
Services are given, the university or R&D center shall follow the requirements given
in the Consultant’s Manual. PE shall ensure that the relevant permanent staff of the
university or R&D center is under the control and direction of the university authorities,
have necessary legal and administrative clearances to engage in consultancy assignments,
and ensure that the assignments given under this section are not subcontracted, assigned
or otherwise transferred to any person or entity outside the university.
The contract shall be entered with the proper legal entity of the university or R&D center
and in no case with an individual or group of individual.
For Foreign Funded Projects this selection method shall be used only with the concurrence
with the Foreign Funding Agency.
3.1.7.2 Consultancy Assignment to Government Institutes

No consultancy assignments shall be awarded to Government Institutions through direct
contracting.
Refer
3.1.8 Preparation of Terms of Reference (TOR) Manual
3.1.8
a) The PE shall be responsible for preparing the TOR for the assignment. TOR shall
be prepared by a person(s) or a Consultancy Firms specialized in the area of the
assignment. The scope of the services described in the TOR shall be compatible
with the available budget. TOR shall define clearly the objectives, specific tasks
required to implement the assignment, goals, and scope of the assignment and
provide background information (including a list of existing relevant studies and
basic data), and provides details on the required qualifications of the key experts;
and lists the expected deliverables to facilitate the Consultants’ preparation of their
proposals. If transfer of knowledge or training is an objective, it should be specifically
outlined along with details of number of staff to be trained, and so forth, to enable
Consultants to estimate the required resources.
However, TOR should not be too detailed and inflexible, so that competing
Consultants may propose their own methodology and staffing. Consultancy Firms
shall be encouraged to comment on the TOR in their proposals. The PE’s and
Consultants’ respective responsibilities should be clearly defined in the TOR.
b) TOR should provide a level playing field for all prospective Consultants. It should
meet the essential requirements of the PE.
c) It should normally be based on respective national standards or equivalent

international standards where applicable.
This Section shall not be used to over-write provisions in Instructions to Consultants

and Data Sheet.
Refer
3.1.9 Preparation of Long List Manual
3.1.9
The long list of Consultants may be prepared following one or any combination of the
following methods:
i. Inviting EOI by advertisement;
ii. By including names of Consultants who have satisfactorily completed

similar assignments to the PE previously;
iii. By collecting names from the other PEs who had obtained the services of
Consultants for similar assignments; and
iv. By collecting names from Foreign Funding Agencies.
However, for large and complex assignments the PE shall advertise in local newspapers,
PEs web site and NPC website or e-GP portal or as directed by NPC. When the
participation of international Consultancy firms is expected, the invitation shall be
extended to international media and international web portals. When e-GP System is
established and rolled out, all such advertisements should be published in e-GP Portal
in addition to other mediums.
Refer
3.1.10 Preparation of Shortlist Manual
3.1.10
Short listing of Consultants shall ensure, only the best qualified Consultancy Organiza-
tions submit proposals. In preparation of short list first consideration shall be given to
those organizations expressing interest that possesses the relevant qualifications.
3.2 Selection of Individual Consultants

Refer
3.2.1 Selection of Individual Consultants Manual
3.2.1
Individual Consultants are normally employed on assignments (lump sum or time based)
for which:
(a) the experience and qualifications of the individual are the paramount
requirement; and
(b) Teams of personnel, and coordination, administration, or collective

responsibility between them are not required; or
(c) no additional outside (home office) professional support is required.

Refer
Terms of Reference (TOR) for the Selection of Individual
3.2.2 Manual
Consultants
3.2.2
PE should first prepare a TOR for the assignment, including the scope of work, estimated
budget etc. The TOR shall be reviewed by the relevant CSC.
Refer
3.2.3 Advertising Manual
3.2.3
Advertisement for seeking expressions of interest (EOI) or CV is encouraged, particularly
when the PE does not have knowledge of experienced and qualified national expert
individuals or of their availability, or the services are complex, or there is potential
benefits from wider advertising, or if it is exceeding a period of three (3) months.
Submission of qualifications shall be advertised in national newspapers, PEs web site

and NPC web site. For international Consultancy Assignments, it is recommended
to advertise in national newspapers, PEs web site and NPC web site, in addition to
international advertisements. Local Consultants, subject to Clause 5.8 below, may apply
for Consultancy assignments advertised internationally. It may not, however, be required
in all cases and should not take place for small value contracts. All invitations for EOIs
should specify selection criteria that are solely based on experience and qualifications.
When firms are invited to propose individual Consultants, EOIs shall clarify that only the
experience and qualifications of individuals shall be used in the selection process, and
that their corporate experience shall not be taken into account, and specify whether
the contract would be signed with the firm or the proposed individuals.
3.2.4 Selection on Competitive Basis

Individual Consultants are selected on the basis of their qualifications for the assignment.
Generally, they shall be selected through comparison of qualifications and capabilities
of at least three or more candidates among those who have expressed interest in the
assignment in response to an advertisement or have been approached directly by the PE.
Capability is judged on the basis of academic background and experience, as appropriate.
3.2.5 Single Source Selection (SSS)

Individual Consultants may be selected on a single-source basis with due justification
in exceptional cases such as:
(a) tasks that are a continuation of previous work that the Consultant has carried
out and for which the Consultant was selected competitively;
(b) assignments with a total expected duration of less than 6 (six) months;
(c) urgent situations; and
(d) when the individual is the only Consultant qualified for the
assignment.
SSS justification with the details of individual Consultant shall be approved by

the CAO;
(e) If the assignment period is more than 6 (six) months, provided funds are
available the NPC approval should be obtained for sufficiently detailed
justification, including the rationale for single source selection instead of a
competitive selection process, and the basis for recommending a particular
individual Consultant in all such cases, except for contracts below a threshold.
3.2.6 Terms of Appointment

A formal contract agreement shall be signed with the individual Consultant. This contract
shall include employment conditions covering remuneration, direct expenses, leave (if
any), insurance (if any), per- diems (if any), and Description of Services. For very small
assignments of routine nature a letter of appointment may be used but shall address the
above-mentioned terms.
CHAPTER 4 - PROCUREMENT PLANNING
Efficient and realistic planning of the entire Procurement Process is vital to ensure timely completion of the procurement cycle.
Preliminary selection steps such as preparation of draft TOR, cost estimates, preparation of draft REOI, draft RFP etc. may
be commenced by the PE even without a firm commitment of funds for the assignments included in the procurement plan
to reduce future delays.
4.1 Procurement Planning

Every Procurement Entity shall be responsible to plan their individual procurements, other
than emergency procurements, in advance and shall prepare following plans.
1. Master Procurement Plan (MPP)
2. Procurement Plan (PP)
3. Procurement Time Schedule (PTS)

Refer
4.1.1 Master Procurement Plan (MPP) Manual
4.1.1
Every Procurement Entity should prepare a Master Procurement Plan for a period of three
years in medium term budgetary perspective and should be compiled at the Ministry level.
(a) Individual procurements envisaged for a period of three years shall be listed in
the Master Procurement Plan. (MPP)
(b) MPP shall be reviewed annually, at the commencement of respective financial

year, and shall be approved by the Secretary to the Line Ministry.
(c) MPP shall be disclosed as per the Regulations made under the Right to Information
Act, No. 12 of 2016.
Refer
4.1.2 Procurement Plan (PP) Manual
4.1.2
(a) PE shall prepare a Procurement Plan (PP) in accordance with Master Procurement
Plan (MPP) and previously approved Action Plan, depicting procurement that
shall be carried out during the year.
(b) PP shall be more specific and list the Procurement activities of the current year
in accordance with the budgetary provisions and approved by the Secretary to
the Line Ministry. PE shall send a true copy of the approved PP to NPC.
(c) After preparation of the procurement plan the PE shall publish the General
Procurement Notice (GPN) indicating the details of the procurements planned
for the current year. GPN shall be published in the websites of the PE, relevant
line ministry and NPC.
(d) PP shall be disclosed as per the Regulations made under the Right to Information
Act, No. 12 of 2016.
PP shall be updated as and when necessary considering actual performance. MPP and
Action Plan also may be amended accordingly, if required.
PE shall send an updated PP to NPC within 30 calendar days of the update.

Refer
4.1.3 Procurement Time Schedule (PTS) Manual
4.1.3
(a) Procurement Time Schedule (PTS) is a schedule describing each Procurement Action
in chronological order, from commencement to completion of the entire Procurement
Process up to the award of contract.
(b) PTS shall be prepared by the PE in two stages;
Stage 1 - all activities from the commencement up to the preparation of draft

Request for Proposal (RFP) document;
Stage 2 - all activities after preparation of the draft Request for Proposal
(RFP) document consequent to obtaining the required budgetary provisions.
(c) Regular updates of PTS Stage 1 shall be done.
(d) It is an obligation of the respective CSC, to consider the PTS and approve it at the
first meeting. The PE shall forward the draft PTS for the Consultancy assignment,
together with any connected downstream Procurement to the CSC. Once the PTS is
agreed upon, the Chairpersons of the CSC shall monitor the progress in consultation
with the PE. Where a major delay occurs, it is the responsibility of the Chairperson
of the CSC to effect remedial measures.
Refer
4.2 Publication of Procurement Plan and Time Frame for Procurement Manual
Actions
4.2
The Procurement Plan is a management tool and needs the approval of the CAO. The final Procure-
ment Plan will be published without estimated costs in advance on the NPC’s website as well as
on the website of the PE. The Procurement Plan will guide the PE in the selection of consultancy
services.
Average time frame for different stages of procurement is specified in the Manual.
Refer
4.3 Total Cost Estimate (TCE) of the Procurement Manual
4.3
TCE is an aggregation of elemental costs of a procurement to be conducted including VAT which will
be shown separately. The elemental costs mean itemized costs of the pre-procurement, procurement
and post- procurement costs.
Well-developed cost estimates are essential to ensure realistic budgetary allocations. The cost
estimates for the proposed assignment shall be prepared by the PE based on assessment of the
resources needed to carry out the activities: experts’ time, logistical support, and physical inputs
(for example; transport, office space, equipment, laboratory equipment etc.). For the complex
procurements, PEs may take external expert assistance. Costs shall be firstly divided into two main
categories:
(a) remuneration; and

(b) other expenses including reimbursable costs,
and further divided into foreign and local costs where appropriate.
4.3.1 Approving of Total Cost Estimate (TCE)
TCE shall be approved by the appropriate authority.

4.3.2 Update of Total Cost Estimate (TCE)
Wherever it is necessary to update the TCE, the updated TCE shall be approved by the
appropriate authority prior to request for Proposals.
The Approving Authority should refrain from revising the TCE during the Procurement
Process after the issuance of request for proposals.
4.4 Expression of Interest

Refer
4.4.1 Publication of Request for Expression of Interest (REOI) Manual
4.4.1
A Request for Expression of Interest (REOI) shall be advertised by giving applicants at
least fourteen (14) calendar days for national competition and twenty-one (21) calendar
days for international competition to submit their interest to provide consultancy services.
The late submission of a response to REOI shall not be a cause for its rejection unless the
PE has already prepared a short list, based on the received EOIs.
An advertisement is to be published in the PE’s website, web portal of NPC, e-GP Portal
(if applicable) and local newspapers in case of national procurement and also established
international e-procurement portals or donor website in case of international procurement
for inviting of eligible Consultants to show their interest in offering Consulting Services
in a specific field of expertise.
Refer
4.4.2 Content of the REOI Manual
4.4.2
a) the name and address of PE;
b) an appropriate description of the assignment providing scope of the
intellectual and professional services required;
c) deadline and place of the submission of the EOl; and
d) evaluation criteria required to be followed.
Refer
4.4.3 Criteria for Short-listing of Consultants Firms Manual
4.4.3
Whenever short-listing is deemed necessary, the PE shall predetermine the criteria for short-
listing. Except for single source, there will normally be five (5) to eight (8) Consultants
in the shortlist, but there is no upper limit for number of candidates to be short-listed.
However, if less than five candidates apply (after sufficient advertising), their proposals
may be considered on merit.
The PE while engaged in short-listing of Consultants will take into consideration the
following factors, namely:
i. qualification;
ii. general experience;
iii. similar experience; and
iv. any other factor that a PE may deem relevant.
Well defined criteria should be used for short-listing. All applicants shall be informed
whether or not they have been short-listed.
4.4.4 Criteria for Short-listing of Individual Consultants
Where applications from Individual Consultants are required, the CV required (Request
for CVs) must be to a certain standard and format. Qualifications can be divided between
academic and professional. Remuneration depends on the level of qualification achieved.
Good TORs do not call for absolutes but allow for some degree of flexibility; Experience
is given greater weight over academic qualification. Similar Experience is given greater
weight than General Experience – the more relevant to the service the more desirable.
Consultants may be asked to provide a sample of their previous work if necessary.
CHAPTER 5 - REQUEST FOR PROPOSAL (RFP) DOCUMENTS
5.1 Preparation of Draft Request for Proposal (RFP) Document

a) The PE shall prepare the draft Request for Proposal (RFP) document.
b) The PE shall complete the abovementioned task prior to the appointment of the CSC.
Refer
5.2 Contents of RFP Document Manual
5.2
The RFP documents shall contain all relevant information necessary for a prospective Consultant
to prepare a responsive proposal for the assignment.
The contents of the Request for Proposal document shall be unambiguous. Sections of the RFP
are given in the Manual.
Refer
5.3 Standard Request for Proposal (SRFP) Document Manual
5.3
a) PEs shall use the appropriate SRFP, issued by the NPC, with minimum changes, as necessary
to address assignment - specific conditions. In the case of Procurements funded by a Foreign
Funding Agency, the PEs may use the SRFPs mandated by such agencies.
b) Where no relevant SRFPs are available, the PE may use appropriate RFP with the concurrence
of CAO; before sending to CAO, the documents must be vetted and approved by the CSC,
who shall take entire responsibility for the contents of such documents.
Refer
5.4 Request for Proposals (RFP’s) Publication Manual
5.4
Adequate publicity shall be given to the “Request for Proposals” in national newspapers, PE’s
website and National Procurement Commission’s web portal and in relevant international websites,
if required. In case of e-GP, the Request for Proposal (RFP) is published in e-GP portal.
Request for Proposal should contain appropriate and relevant basic information required by
prospective Consultants including main eligibility criteria, qualification requirements etc., depending
on the value and complexity of the services.
Refer
5.5 Letter of Invitation (LOI) Manual
5.5
The LOI should state the intention of the PE to obtain the services of the Consultant for a given
assignment and inform the shortlisted Consultants that they are invited to submit a proposal for
the execution of the assignment. At a minimum it shall provide the basic information regarding:
a) The name of the PE and source of funding;
b) The names of the shortlisted firms;
c) A brief description of the objectives and scope of the assignment;
d) The method of selection; and
e) The date, time and address for submission of proposals.
The LOI should also instruct the Consultants to indicate whether they intend to submit their proposal
alone or in association with other shortlisted parties/individuals and request the PE’s permission
to such association.
Refer
5.6 Instructions to Consultants (ITC) Manual
5.6
Instructions to Consultants shall contain all relevant information for the Consultant to prepare and
submit a proposal. ITC shall not be changed in SRFPs.
Refer
5.7 Eligibility of Consultants Manual
5.7
a) Eligibility requirements for Consultants shall be included in the RFP documents.
b) Consultants should be considered as ineligible under the following situations, among others:
(i) If the Consultant is blacklisted (a list of blacklisted Consultants will be updated peri-
odically, and will be published in the NPC web portal) or by FFA in case of Foreign
Funded Projects;
(ii) Any Consultant who has been engaged by the PE to prepare the TOR for the proposed
Consultancy Assignment.
5.8 Equal Treatment for Foreign and National Consultants

When foreign Consultants are involved, the contract conditions shall have equal application to
both national and foreign Consultants other than allowing preference for participation of national
Consultants, if specified in the RFP.
Only if foreign currency payments are envisaged under the contract, both the foreign and na-
tional Consultancy Firms shall be eligible to quote and be paid in foreign currency to the extent
applicable.
To be eligible for foreign currency payment, Consultants are required to submit justification to
that effect. Import of specialized equipment spending foreign currency by the Consultant and pay-
ment of remuneration for expatriates etc., would for instance be deemed to be valid justifications.
Refer
5.9 Proposal Validity Period Manual
5.9
a) Consultants shall be required to submit proposals valid for a period of specified in the RFP
documents.
b) The CSC shall ensure that the period so specified is sufficient to enable the CSC to complete
the evaluation of proposals, obtain all requisite approvals, and in the case of a Foreign Funded
Project to obtain the concurrence of the Foreign Funding Agency for the recommendation of
award in order that the contract can be awarded within the proposal validity period.
c) The minimum proposal validity periods are given in the Consultancy Services Manual.
5.10 Time for Submission of Proposals
The CSC shall allow sufficient time for the Consultants to prepare their proposals. The CSC shall
follow the minimum time periods given in the Consultancy Services Manual.
5.11 Clarity of RFP Documents
a) All prospective Consultants shall be provided with the same information and shall be assured
of equal opportunities to obtain additional information. PE shall provide reasonable opportunity
of access to the project sites for visits by prospective Consultants, if requested.
b) In the case of all CCSC, MCSC, DCSC and PCSC assignments, a pre-proposal conference
shall be arranged where by potential Consultants have the opportunity of seeking clarifications
from the PE.
c) Minutes of such pre-proposal conference shall be circulated to all prospective Consultants.

Minimum period between issuing minutes of pre-proposal conference and proposal closing date
shall be ten (10) working days for national competitive bidding and in the case of international
competitive bidding twenty (20) calendar days.
If there are drastic changes in specifications/requirements/scope of work in the pre-proposal

conference minutes against specified in the RFP, PE shall consider increasing the above period
appropriately. If deemed necessary, the PE may extend the deadline for proposal submission closing
appropriately.
Refer
5.12 Clarifications and Amendments to RFP Manual
5.12
a) Any prospective Consultants requiring any clarification of the RFP documents should notify
to the PE In Writing, in sufficient time before the date of proposal submission closing. The
PE, in consultation with CSC, shall provide these clarifications In Writing or by fax or email,
electronic message in case of e-GP, and copy them to all Consultancy Firms on the short list
without indicating the name of the Consultant who request the clarification.
b) At any time prior to the date of closing of proposal submission, PE may at its own initiative
or in response to a clarification requested by prospective Consultants, modify RFP documents
by issuance of addenda. However, minimum period between issuing addenda and proposal
closing date shall be ten (10) working days for national competitive bidding and in the case of
international competitive bidding twenty (20) calendar days.
c) If deemed necessary, the PE may extend the deadline for proposal submission closing giving
due consideration to the PTS.
Refer
5.13 Association between Consultants Manual
5.13
Consultants may associate with each other in the form of a joint venture or of a sub-consultancy
agreement to complement their respective areas of expertise, strengthen the technical responsive-
ness of their proposals and make available bigger pools of experts, provide better approaches and
methodologies, and, in some cases, offer lower prices. Joint venture and/or partners are jointly and
severally liable on the execution of a contract.
Such an association may be for the long term (independent of any particular assignment) or for a
specific assignment.
If the PE employs an association in the form of a joint venture, the association shall appoint one
of the firms to represent the association as a lead partner; all members of the joint venture, or their
representative with a power of attorney, shall sign the contract. All members of the joint venture
shall be jointly and severally liable for the entire assignment.
PE shall not require Consultants to form associations with any specific firm or group of firms or
include any particular individual in their proposals, but may encourage association with qualified
national firms.
Once the short list is finalized, and the Requests for Proposals (RFPs) are issued, any association
in the form of joint venture or sub-consultancy among short-listed Consultancy Firms shall not
be permissible. However, under special circumstances it may permissible only with the approval
of the PE.
A shortlisted Consultancy Firm shall submit only one proposal in the same selection process, ei-
ther individually as a proponent or as a partner in a joint venture. No Consultancy Firm can be a
sub-consultant while submitting a proposal individually or as partner in a joint venture in the same
selection process. A Consultancy Firm, if acting in the capacity of sub-consultant in any proposal,
may participate in more than one proposal, but only in that capacity.
5.14 Value Added Tax

The Consultants shall be instructed to indicate VAT separately and VAT shall not be considered
for evaluation of proposals.
5.15 Evaluation Criteria and Qualification Requirements

a) The RFP documents shall clearly specify the evaluation criteria and sub-criteria that will be
applied for the selection of the Consultant.
b) Qualification criteria and post qualification criteria shall also be clearly stated in the RFP
documents.
c) The disclosed criteria shall not be modified or additional criteria shall not be introduced during
the proposal evaluation. Evaluation shall be done only in accordance with the disclosed criteria.
5.16 Standard Forms of Contract
5.16.1 Draft Contract to be Issued

a) The draft contract shall be issued with the RFP document.
b) The draft contract document shall clearly define:
i. the scope of the assignment (Description of Services-DOS);
ii. the rights and obligations of the PE;
iii. the rights and obligations of the Consultant:
iv. if the PE intending to assign members of its own professional staff to the
assignment in different capacities, PE shall give the details governing
such staff, known as counterpart staff, as well as facilities that shall be
provided by the PE, such as housing, office space, secretarial support,
utilities, materials, and vehicles.
v. The contract shall also indicate the measures that Consultant can take if
some of the items cannot be provided or have to be withdrawn during
the assignment, and the compensation the Consultant will receive in
such a case.
vi. that the Consultant should state the local cost only in Sri Lankan Rupees.
vii. That the failure on the part of the parties to perform their obligations
under the contract will not be considered a default, if such failure is the
result of an event of Force Majeure, as defined in the contract.
viii. The policy on corrupt and fraudulent practices: Consultants, sub- con-
sultants, service providers and any agents (whether declared or not); and
any of their personnel, observe the highest standard of ethics during the
Procurement Process, selection and contract execution, and refrain from
Fraud and Corruption.
ix. In addition to the general conditions of contract, any special conditions

particular to the specific Goods or Works or Services to be procured and
the location and modality of the project shall be included.
5.17 Conditions of Contract

(a) The General Conditions of Contract (GCC) are generally used with all types of contracts and
shall be issued with the RFP document. Special Conditions of Contract (SCC) may also be
included in the RFP document with necessary modifications, depending upon the need.
(b) Provisions indicated in the SCC will supersede the corresponding provisions in the GCC.
5.18 Price Adjustment

To adjust the remuneration for foreign and/or local Consultants due to inflation and other costs, a
price adjustment provision may be included in the contract if its duration is expected to exceed 18
months. Contracts of shorter duration (less than 18 months), may also include similar provisions
for price adjustments when local or foreign inflation is expected to be high.
Prices are adjusted by using applicable official price indices. Where such indices are not available,
they may be derived from appropriate documented sources. The formula, the applicable price in-
dices, and the base date for application shall be clearly defined in the contract.
5.19 Payment Provisions

Payment provisions, including amounts to be paid, schedule of payments, and payment procedures,
shall be included. Payments may be milestone based.
Refer
5.20 Advance Payment Manual
5.20
An advance payment can be made, when required provisions are included in the RFP document.
Refer
5.20.1 Performance Security Manual
5.20.1
If PE wishes to obtain a Performance Security from the Consultancy Firm under special
circumstances, it is allowed to do so up to the percentage as specified in the RFP. This
percentage is normally 5% to 10% of the total Contract Price.
5.21 Dispute Resolution
(a) All disputes arising out of contract agreements shall be first subjected to adjudication and
thereafter governed in accordance with the provisions of the Arbitration Act, No. 11 of 1995
of Sri Lanka, as amended.
(b) A reference must be made in the contract documents, that settlement of disputes would be by
way of arbitration and an appropriate arbitration clause should be included in the contract to
such effect.
(c) For Foreign Funded Projects dispute resolution provisions recommended by the Foreign
Funding Agency shall be complied with.
(d) Subject to the provisions of the Arbitration Act, the Rules of Arbitration of the International
Chamber of Commerce (ICC) or the United Nations Commission on International Trade Law
(UNCITRAL) or any other set of acceptable rules such as Sri Lanka International Arbitration
Centre (Guarantee) Limited are recommended for usage.
(e) The venue of arbitration shall be in Sri Lanka, for GoSL funded projects. The venue of arbi-
tration for Foreign Funded Projects would be determined in accordance with the requirements
of the Foreign Funding Agency.
Refer
5.22 The Law of Contract Manual
5.22
The law governing the Contract shall be the Laws of the Democratic Socialist Republic of Sri Lanka.
5.23 Terms of Reference (TOR)
Refer clause 3.1.8 of this Guidelines.
5.24 Technical and Financial Proposals Standard Forms
The PE and Consultants shall not modify technical and financial proposal standard forms given
in the Standard RFPs, unless it is essential and that with the concurrence of relevant CAO or AO
where appropriate.
CHAPTER 6–PROPOSAL PROCESS
Refer
6.1 Issuance of RFP Documents Manual
6.1
(a) The RFP should be made available during business hours, by mail or in person to short listed
Consultant, or through the e-GP platform on the payment of the prescribed fees if applicable.
(b) The RFP shall be issued only to the shortlisted Consultants and it is not transferable.
Refer
6.2 Proposal Preparation Period Manual
6.2
(a) The proposal preparation period shall commence from the date on which the RFP documents
are made available to short listed Consultants.
(b) The period shall end with the deadline for proposal submission.
(c) The proposal preparation period shall be reasonably adequate to prepare the proposals.
Refer
6.3 Submission/Receipt of Proposals Manual
6.3
(a) The proposal shall be received only at one location by;

i. mail under registered post; or
ii. personal delivery against receipt, to the officer authorized by the PE to receive
such proposals at the specified location; or
iii. e-GP portal of Sri Lanka (if instruction given in the RFP)
(b) Except for CQS and SS, all proposals must be submitted only under sealed cover and the RFP
documents should stipulate a condition to this effect.
(c) Proposal shall be submitted in one original and a copy as stipulated in the “Instruction to
Consultants” sealed separately and clearly marked as “Original” or “Copy”. All these envelopes
shall together be enclosed in one envelope and delivered as per above. In case of e-GP system,
only one digital copy will be submitted in provided forms and formats by the e-GP System.
Refer
6.4 Rejection of Late Proposals Manual
6.4
Proposals shall be closed at the time specified in the RFP documents. Late Proposals shall not be
accepted and shall be returned unopened in the case of QCBS, QBS, LCS, and FBS. In case of e-GP
system, the system shall be geared to automatically reject the proposal if the specified time is expired.
6.5 Public Opening of Proposals
(a) Responsibility of opening of the proposals is vested with the CSC and should be opened soon
after the time of closing of proposal submission deadline. The CSC may delegate such au-
thority to a “proposal opening committee (POC)” which shall comprise of a minimum of two
members.
(b) Except for CQS and SSS, the proposals shall be opened in the presence of the Consultants who
choose to attend. Only the outer envelope shall be opened and the names and addresses of the
Consultants who have submitted the proposals shall be announced. The presence or absence
of the financial proposal of each Consultant shall also be disclosed. In case of e-GP system,
online opening of proposal may be carried out.
(c) Only the Financial Proposals marked as “original” shall be opened at the Financial proposal
opening. The “copy” shall not be opened. In case of e-GP System, a unique copy of the proposal
will be remained in the system and accessible to the authorized committee members for opening
and evaluation purposes.
Refer
6.6 Procedure of Opening Financial Proposals Manual 6.6
(a) The PE shall inform the firms whose technical proposal were evaluated as qualified, of the
date, time and place where the financial proposals will be opened publicly. The opening date
shall be determined allowing sufficient time for Consultants to make arrangements to attend
the opening of the financial proposal and in no case, should be not less than three (3) working
days’ notice if all the firms are national, and eight (8) working days in all other cases. The name
of the firm, the technical quality score (for QCBS), and proposal prices shall be announced,
and recorded when financial proposals are opened.
(b) The proceedings of the financial proposal opening shall be recorded in the prescribed format
and should be signed by all members of the proposal opening committee.
(c) The original financial proposal together with the minutes pertaining to proposal opening shall
be handed over to the chairperson of the CSC.
CHAPTER 7–EVALUATION OF PROPOSALS
Refer
7.1 General Manual 7.1
All the proposals should be evaluated strictly on the basis of evaluation criteria, and terms and
conditions incorporated in the RFP document. No new conditions and criteria should be brought
in while evaluating the proposals. Aim should be to ensure that no firm gets undue advantage over
others.
7.2 Confidentiality
After closing of submission of Proposals, information relating to substance, clarification and
evaluation of Proposals and recommendations concerning selection shall not be communicated to
Firms nor to any other person, (unless they are formally involved in the process.), until after the
date on which the formal announcement is due.
7.3 Services of Outside Expert/s for Evaluation of Proposals

(a) If the evaluation of Proposals is entrusted to outside expert/s, it shall be made under the
supervision and guidance of CSC;
(b) Outside experts shall not form part of CSC;
(c) The CSC shall prepare its formal report along with the outside expert’s report.
Refer
7.4 Time Frame for Proposal Evaluation Manual
7.4 and 7.5
Proposal evaluation shall be undertaken expeditiously, leaving ample time to seek all the requisite
formal approvals. Hence, proposals shall be evaluated within the period specified in the PTS.
Refer
7.5 Extension of Proposal Validity Manual
7.4 and 7.5
CSC must endeavor to make the award in keeping with the PTS and within the bid validity period.
(a) In exceptional situations where it is not possible to make the award before the expiry of proposal
validity period, prior to such expiration, the validity period may be extended;
(b) If a bidder does not agree to extend the validity of the proposal, such proposal shall be excluded
from further consideration.
(c) Any extension of validity so requested, may result the firm substituting the original staff
proposed during the negotiations. However, it shall be in accordance with terms and conditions
laid down in the RFP.
7.6 Original Proposal to be Evaluated

Only the Proposals marked “original” shall be evaluated by the CSC.
In case of e-GP system, there will be only one digital copy in the e-GP System submitted in
accordance with the forms and formats as provisioned in the system.
7.7 Purpose and Stages of Proposal Evaluation
a) The evaluation of the Proposals shall be carried out in two stages; first the quality and
then the cost. The evaluation shall be carried out in full conformity with the provisions of
the RFP. The purpose of Proposal evaluation will vary with the selection method used.
b) Precise evaluation procedures vary between the different methodologies, but all consist
of three stages:
i. a preliminary screening to eliminate proposals which do not comply with the basic
requirements of the RFP and the firm does not meet mandatory eligibility requirements;
ii. a detailed technical evaluation to determine whether proposals are responsive to

the RFP document, to assess the relative quality of the proposals, using a merit point
scoring system specified in the RFP and to determine which proposals should proceed
to the financial opening and evaluation; and
iii. a financial evaluation to examine the prices of the proposal/s and determine which
is the successful proposal that should be recommended for award of contract.
7.8 Evaluation of Technical Proposal
7.8.1 CSC to agree on the Rating System in Advance
All members of the CSC should familiarize themselves with the RFP (in particular
the TOR), the evaluation criteria and sub-criteria specified in the data sheet, and the
selection procedure. The CSC should meet before the deadline for submission of the
proposals to confirm that there is a common understanding of the evaluation method,
the evaluation criteria and sub-criteria, and a joint definition of the rating system. It is
important not to wait until after the technical proposals are opened to define the rating
system, since these definitions could be biased by the knowledge of the contents of
the proposals.
7.8.2 Evaluation to be Carried out by CSC
Evaluation shall be carried out by each CSC member other than the chairperson,
individually. The CSC first reviews each proposal to confirm that it is substantially
responsive, that is, that there are no important/material omissions or deviations from
the stated objectives, TOR, or other key requirements of the RFP. Individual’s results
shall be recorded on pre-formulate worksheets or web-forms templates. By applying
the criteria and sub-criteria specified in the RFP, CSC shall establish the absolute, not
the relative, quality of the proposals.
After each member has independently completed the evaluation, the CSC should meet
to review, and if necessary discuss the merits of, individual evaluations and scores.
Some evaluators tend to be generous while others will be rigid in their judgment and
ratings. Such disparity does not matter, provided each evaluator is consistent and dif-
ferences in scores are not too large. The chairperson of the CSC shall review the large
differences and discuss with the members at a joint meeting, since they often are caused
by improper or inaccurate use of the rating system. As a result of these discussions, a
member may revise some of his or her ratings and scores if necessary; these changes
should be recorded. For each proposal, the CSC should then calculate the average of
the scores allocated by all members under each criterion, establish the technical ranking
of the proposals, and identify the best. The evaluation report must include the joint as
well as the individual evaluations.
7.8.3 Strengths and Weaknesses of Each Proposal to be Recorded

During the evaluation the committee also should comment on the strengths and
weaknesses of all proposals that have passed the minimum technical qualifying mark
indicated in the RFP. This will help identify any issues in the recommended proposal
that need to be clarified during negotiations.
Refer
7.8.4 Evaluation Based on Disclosed Criteria Manual
7.8.4
The evaluation shall be based on the evaluation criteria defined in the RFP. The CSC
shall evaluate each technical proposal, taking into account several criteria including:
i. the Consultant’s relevant experience for the assignment;
ii. the quality of the methodology proposed;
iii. the qualifications and experience of the key staff proposed;
iv. Other matters, such as the extent of participation of nationals among

key staff in situations where the shortlist comprises of national and
international firms and transfer of knowledge for assignments where
training is needed.
7.9 Technical Proposal Evaluation Form
Immediately after the evaluation of technical proposal is completed a Technical Evaluation Report
shall be prepared by CSC in the format as published by NPC recording and explaining the scores
given to each proposal. For each proposal, the report also should indicate technical weaknesses
or deviations from the terms set out in the RFP and comment on their acceptability or alternative
proposed by the Consultants, and comment on their acceptability. The technical evaluation report
is a confidential document and its contents shall not be disclosed, except to the extent as required
under the provisions of the Right to Information Act.
7.10 Clarifications from Consultants During Evaluation
During the evaluation, CSC may request clarification or additional information from the Consul-
tants through the PE. However, CSC may not seek clarifications or additional information from
the Consultants that could change the substance of the proposal.
7.11 Opening of Financial Proposals
After preparing the technical evaluation report, the PE shall notify the Consultants whose proposals
did not meet the minimum technical score specified in the RFP or were found to be nonresponsive,
indicating that the Consultants’ financial proposals will be returned unopened at the end of the
selection process. The PE simultaneously notifies Consultants whose technical proposals were
above the minimum technical score and informs them of the date, time, and place set for opening
the financial envelopes. The opening date should be defined to allow sufficient time for Consultants
to make arrangements to attend the opening.
The proposal opening committee (POC) verifies that the financial proposals have remained sealed
and then opens them. The financial proposals of technically qualified firms will be opened publicly
in the presence of firms or their representatives who choose to attend. The name of the Consultant,
the technical points, and the proposed prices shall be read aloud and recorded as each financial
proposal is opened.
When e-GP submission of proposals is used, this information shall be posted online. No modifica-
tion to financial proposals is permitted. The PE prepares the minutes of the public opening, which
should be attached to the Financial Evaluation Report.
If Consultants were initially requested to submit financial proposals under QBS, the PE shall notify
the Consultant with the highest-ranked technical proposal and indicates the date, time, and place
set for negotiating the financial proposal and the contract.
Refer
7.12 Evaluation of Financial Proposals Manual
7.12
The CSC should first establish that the financial proposals are completed (i.e. whether they have
priced all the items of the corresponding technical proposal. If not the CSC shall cost them and
add those costs to the initial price if Time Based type contract is used).
Then the Proposals are checked for arithmetical errors. Arithmetical errors should be corrected,
and the corresponding adjustments made to the offered prices to obtain the final evaluated prices.
In case of e-GP system, a separate checking of arithmetic errors need not be effected if the price
of each item is automatically calculated by the system using the rates given by the Consultants
against the requirements provided by PE.
Activities and items described in the technical proposals, but not priced, shall be assumed to be
included in the prices of other activities or items.
If an activity or line item is quantified differently in the financial proposal than in the technical
proposal and the Time-Based Form of Contract has been included in the RFP, the CSC shall correct
the quantification indicated in the financial proposal so as to make it consistent with what is indicat-
ed in the technical proposal, apply the relevant unit price included in the financial proposal to the
corrected quantity, and correct the total proposal cost. In case of e-GP system, the system should
be geared for automatic calculation.
If the Lump-Sum Form of Contract has been included in the RFP, no corrections are applied to the
financial proposal in this respect.
For the purpose of comparing proposals, evaluated prices shall be converted to a single currency
using the exchange rate, date and source indicated in the RFP where appropriate.
When FBS is adopted, adjustments made by the CSC to correct omissions or in- consistencies de-
tected during the evaluation of the financial proposal could raise the evaluated price of a proposal
over the available budget indicated in the RFP. This could lead to the rejection of the proposal.
Refer
7.13 Negotiation with the Highest Ranked Consultant Manual
7.13
The objective of negotiations is to arrive at a mutually satisfactory contract between the PE and
the selected Consultants. The parties will discuss the technical proposal submitted, agree on the
detailed scope of work of the Consultant assignment and all related arrangements, negotiate financial
terms, and discuss and finalize contract conditions. A good contract should protect the interests of
both parties in a balanced way.
7.13.1 Negotiation in case of QCBS, FBS and LCS
After completion of the evaluation, the CSC shall negotiate a contract with the first
ranked Consultancy firm. Negotiations shall include discussions of the TOR, the meth-
odology, work plan, deliverables, staff schedule, PE’s counterpart facilities, and special
conditions of the contract. These discussions shall not substantially alter the original
TOR attached to the invitation. The final TOR and the agreed methodology shall be
incorporated in “Description of Services” (DOS), which shall form part of the contract.
The selected Consultancy firm should not be allowed to substitute key staff, unless
both parties agree that undue delay in the selection process makes such substitution
unavoidable or that such changes are critical to meet the objectives of the assignment.
If this is not the case and if it is established that key staff were offered in the Proposal
without consulting their availability, (as far as possible to avoid such situations Con-
sultants can have an written agreement with the key staff on their availability for the
particular assignment before submitting their names) the Consultancy firm may be
disqualified and the process continued with the next ranked Consultancy firm. The
key staff proposed for substitution shall have qualifications equal to or better than the
key staff initially proposed.
During the negotiations on financial proposal, unit rates for staff- months and reim-
bursable shall not be negotiated, since these have already been a factor of selection in
the cost of the proposal, unless there are exceptional reasons.
If the negotiations fail to result in an acceptable contract, the CSC shall terminate
the negotiations and invite the next ranked Consultancy firm for negotiations. The
Consultant shall be informed of the reasons for termination of the negotiations. Once
negotiations are commenced with the next ranked Consultancy firm, the CSC shall not
reopen the earlier negotiations. After negotiations are successfully completed with the
next firm, the CSC shall make their final determination of the contract award. After
this determination, the PE shall promptly notify other Consultancy firms on the short
list that they were unsuccessful.
7.13.2 Negotiation in Case of QBS, CQS and SSS

After completion of the evaluation the CSC shall negotiate a contract with the first
ranked Consultant. Negotiations shall include discussions of the TOR, the methodology,
work plan, deliverables, staff schedule, PE’s counterpart facilities, and special
conditions of the contract. These discussions shall not substantially alter the original
TOR attached to the invitation. The final TOR and the agreed methodology shall be
incorporated in “Description of Services,” which shall form part of the contract.
The selected Consultant should not be allowed to substitute key staff, unless both parties
agree that undue delay in the selection process makes such substitution unavoidable
or that such changes are critical to meet the objectives of the assignment. If this is
not the case and if it is established that key staff were offered in the Proposal without
consulting their availability (as far as possible to avoid such situations Consultants can
have an agreement with the key staff on their availability for the particular assignment
before submitting their names), the Consultant may be disqualified, and the process
continued with the next ranked Consultant. The key staff proposed for substitution
shall have qualifications equal to or better than the key staff initially proposed.
The negotiations on financial proposal shall include the remuneration rates for staff
(breakdown of fees such as salary, social costs, overheads, fee that is profit, and any
premium or allowance paid), proposed unit rates and quantities for reimbursable.
If the negotiations fail to result in an acceptable contract, the CSC shall terminate the
negotiations and invite the next ranked Consultant for negotiations. The PE shall inform
the Consultant of the reasons for termination of the negotiations. Once negotiations
are commenced with the next ranked Consultant, the CPC shall not reopen the earlier
negotiations. After negotiations are successfully completed, the CSC shall make
their final determination of the contract award. After this determination, the PE shall
promptly notify other firms on the short list that they were unsuccessful.
The CSC shall keep a record of matters agreed with the Consultant during negotiations
and the PE shall execute a Memorandum of Understanding with the Consultant relating
to the agreed negotiated terms and conditions, which subsequently shall be included
as contract terms.
Refer
7.14 Combined Evaluation Report Manual
7.14
Immediately after the evaluation is completed the CSC should prepare a Combined Evaluation
Report and recommendation/determination of contract award in the prescribed format and submit
to the relevant authority for the approval.
7.15 Rejection of all Proposals Received

If all proposals are found to be nonresponsive, the CSC may be justified in rejecting all of them.
The grounds for rejecting all proposals are as follows:
(i) The proposals present major deficiencies in complying with the RFP.
(ii) All proposals fail to achieve the minimum qualifying mark (technical score) indicated
in the RFP.
(iii) The proposal prices are substantially higher than the PE’s estimated budget.
There may be technical reasons for the deficiencies. Most frequently, the PE and Consultants disagree
on which contractual party should be responsible for executing specific assignment activities or
on the exact content and feasibility of specific deadlines affecting the implementation schedule
of the PE’s project. In other instances, Consultants may find the estimated staff-months and the
distribution of risks unacceptable.
And also, the PE may not know the ongoing remuneration levels of Consultants for the type of service
being considered, Consultants may misinterpret the TOR, or the PE’s plans may be too ambitious
for the available budget. In this case, before rejecting all proposals, the PE, should investigate the
feasibility of increasing the budget or scaling down the scope of services to meet the original budget.
In all cases, good TOR, accurate budget, and review of the RFP can reduce the risks of nonresponsive
proposals.
If all proposals rejected, the new process may start and include revising the TOR, RFP (including
the short list) and the budget. Calling for new proposals creates obvious delays and should remain
the last resort.
CAO’s prior approval shall be obtained before rejecting all proposals and to start the new process.
CHAPTER 8 - AWARD OF CONTRACT
8.1 Recommendation/Determination of Contract Award

In case of any dispute in respect of recommendation/determination of contract award, the majority
decision of the CSC shall prevail. However, any CSC member may submit a dissenting report.
After the CSC has completed the evaluation:
(a) in the case of CCSC, the CCSC may make a recommendation of contract award to the CAO;
and
(b) in all other cases convey the determination of contract award to the:
i. CAO, in the case of MCSC; or
ii. AO, Head of Department in the case of DCSC; or
iii. Project Director in the case of PCSC.
Refer
8.2 Communication to all Consultants of the Intention to Award Contract Manual
8.2
Within one week of being informed of the recommendation of CCSC, MCSC, PCSC or DCSC
as required, all the participated Consultants shall be informed In Writing individually by the
Secretary to the Line Ministry (CAO), of the selection of the successful Consultant and the in-
tention to Award the contract to such Consultant and the specific reasons as to why the particular
Consultant’s proposal has not been successful.
After the award is made, the Consultants are entitled to obtain copies of Proposal evaluation reports
(Technical, Financial and Combined), including any other reports and opinions which the CSC used
in arriving at their respective recommendations.
However, the Secretary to the Line Ministry has the right to reserve any confidential details, which
can be legally misused subject to compliance with Right to Information Act. (RTI).
CAO shall inform all Consultants with regard to Appeal Boards for their objections/appeals if any.
8.3 Debriefing
The Purposes of debriefing are to:
(a) Inform the aggrieved Consultant who requests for a debriefing during the standstill pe-
riod, of the reasons for not being successful, pointing out the specific shortcomings in
its proposal without disclosing contents of other proposals, with the overall objective of
educating the Consultant to submit more responsive and competitive proposals in future.
(b) Minimize the level of complaints and to demonstrate clearly the principle and practice
of probity and transparency.
(c) After the notification of contract award, a Consultant who wishes to ascertain the grounds
on which its proposal was not selected should address its request to the PE.
In the Notification of contract award, the PE shall specify that any Consultant who wishes to as-
certain the grounds on which its proposal was not selected, should request an explanation from the
PE. The PE shall promptly provide the explanation as to why such proposal was not selected, In
Writing and/or in a debriefing meeting, at the option of the Consultant. The requesting Consultant
shall bear all the costs of attending such a debriefing. In this discussion, only the Consultant’s
Proposal can be discussed and not the Proposals of competitors.
Refer
8.4 Standstill Period Manual
8.4
To give Consultants time to examine Notification of Contract award and to assess whether it is
appropriate to submit a complain /appeal, a standstill period shall apply, However, standstill period
does not apply under single proposal situation in a competitive method or under the direct selection
method or emergency situation announced by GOSL.
Refer
8.5 Appeals against Contract Awards Recommended by the CCSC/MCSC/
Manual
DCSC or PCSC
8.5
(a) Any unsuccessful Consultant who is not satisfied with the contract award decision, within
10 working days’ time of being informed of the Intention to Contract Award, may make its
representation against the recommendation of the CCSC/MCSC/DCSC or PCSC to award the
contract to the successful Consultant, to the respective Appeal Board upon payment of the
requisite fees as instructed by relevant authority.
(b) The Appeal Board shall immediately after the filing of the request serve a notice thereof to the
Chief Accounting Officer of a Procuring Entity.
(c) Request for review and suspension of procurement proceedings shall be by a written notification
by the Appeal Board.
(d) Upon being served with a notice of a request for review, the Procuring Entity shall within
five working days or such lesser period as may be stated by the Appeal Board in a particular
case, submit to the Appeal Board a written memorandum of response to the request for review
together with all relevant documents.
Appeal Boards shall, after due consideration of the contents of appeals, make their recommendations
with reasons to the appropriate authority with copy to NPC.
Refer
Appointment of Procurement Appeal Boards (PABs), Reporting and
8.5.1 Manual
Operational Responsibilities and Payments for PAB Members
8.5.1
The key objectives of establishing the procurement appeal boards are to provide an inde-
pendent review of the CSC decision upon the grievances submitted by the consultants.
Appealing procedure would allow contested issues to be reviewed and corrective measures
to be put in place.
PAB procedure would allow speedy decision and lower cost for all parties while at the
same time providing fairness, transparency and value for money.
The following PABs shall be appointed as per the respective authority limits as specified
under GL 2.5 from time to time;
 PABs for Cabinet Level Procurements related to CCSC and CANC
 MPABs for Ministry Level Procurements related to MCSC
 DPAB/PPABs for Department/Project level Procurements related to DCSC/PCSC
PABs are responsible to examine and hear each and every appeal submitted by aggrieved
parties and make its recommendation to the relevant authority with a copy to CAO/AO/
HD/PD. In the case of Cabinet and Ministry level procurement, the PAB recommendations
shall be copied to NPC.
Refer
8.5.2 PABs for Cabinet level Procurements related to SCCSC, CCSC and Manual
CANC
8.5.2
There shall be either one or more PAB/s to handle appeals related to procurements in the
relevant threshold level of CCSC and CANC.
PAB members for Cabinet appointed CSCs are appointed by H.E. the President of Sri
Lanka on the nominations submitted by the NPC.
The appointing authority should take appropriate steps to appoint required number of PABs
to handle the procurement appeals.
Refer
8.5.3 MPABs for Ministry level Procurements related to MCSC Manual
8.5.3
There shall be either one or more MPAB/s to handle appeals related to procurements in
the relevant threshold level of MCSC.
The Members for MPABs are appointed by the CAO.
The appointing authority should take appropriate steps to appoint required number of
MPAB to handle the procurement appeals.
Refer
8.5.4 DPAB/PPAB for Department/Project level Procurements related to Manual
DCSC/PCSC
8.5.4
There shall be a DPAB/PPAB to handle appeals related to procurements in the relevant

threshold level of DCSC/PCSC.
The Members for DPAB/PPAB are appointed by the CAO on the recommendation of
AO/HD/PD.
8.5.5 Payments for Members of Procurement Appeal Boards (PAB) and Refer
Staff Officers and Other Officers Assisting in the Procurement Appeals Manual
Process 8.5.6
Members and alternate members of PAB shall be remunerated for participation in the
procurement appeal process. The members of the PAB and the official whose specific
responsibilities are assigned shall be remunerated.
Payment of remunerations shall be based on performance of such committees and indi-

viduals and the eligible payments shall be determined by the NPC, in consultation with
the General Treasury.
8.6 Contract Award Procedure

Following the acceptance of a Proposal submitted by a Consultant
a) a formal Letter of Acceptance shall be issued forthwith to the bidder by the Procuring Entity.
b) Prior to issuance of Letter of Contract Award, the PE should ensure that budgetary provision
is available to meet the cost of contract.
c) Letter of Contract Award shall be issued within the validity period of the proposal, and no
sooner the final determination of contract award is completed.
d) Arrangements shall be made to sign the contract as early as possible prior to the commencement
of the assignment.
8.7 Formal Contract
A formal contract agreement is required to be entered into with the successful Consultant. Contract
administration depends on the types of Contract signed: Lump-sum or Time-based.
Refer
8.8 Publication of Contract Award Manual
8.8
The PE should publish promptly the details of the award in PE’s web site, NPC Web portal, and
e-GP Portal if applicable.
CHAPTER 9 - CONTRACT ADMINISTRATION
Refer
9.1 Contract Administration Manual
9.1
The PE shall be responsible for ensuring adequate supervision and assessment of deliverables and
scope of services by the Consultants.
Refer
9.2 Variation of Contract/Change Requests Manual
9.2
a) The conditions of contract will normally empower the PE to vary the scope, quality or quantity
of Services to be executed at any time during the progress of the contract and provided the
basis for such variations/change requests and valuation of such variations/ change requests
within approved limits and is justifiable.
b) The CAO/AO shall appoint the ‘Change Control Committee (CCC)’ to examine the variations/
change requests that are justifiable in all aspects.
c) Any contract variation/change request shall obtain prior approval by the relevant authority.
d) However, before committing any expenditure due to variation/ change request proposed, rel-
evant total cost estimate shall be duly revised, necessary financial provision shall be available
and necessary prior approvals from the appropriate authority obtained.
9.3 Extension of Time
Extensions of time may be granted by an appropriate authority, in exceptional circumstances or

due to Force Majeure situations, when the Consultant establishes to the satisfaction of the PE, that
delays are attributable to circumstances beyond the control of the Consultant.
Refer
9.4 Debarring or Blacklisting of Defaulting Consultants Manual
9.4
Any defaulted Consultant shall be considered for blacklisting or banning to participate in the con-
sultancy assignments for a period specified by the appropriate authority.
NPC and the CAO/AO shall maintain a database of defaulting Consultants which shall be updated
regularly. After obtaining the information from particular PE the relevant CAO/AO shall inform
NPC the details of the Consultant to be included in the list maintained by the NPC.
The PEs should not award any contracts to any Consultant, as long as their names remain in the
data base.
9.5 Supervising the Consultants
a) To enable the Consultant to begin work promptly, the PE shall make arrangements for super-
vision of the assignment, in particular by:
(i) Appointing the counterpart staff where required;
(ii) Providing office space, transport and other supplies and services where applicable as
per the client inputs in the RFP;
(iii) Informing all concerned institutional parties;
(iv) Effecting the advance payment if specified in the RFP;
(v) Providing, authorization, data and background material if needed;
(vi) Acceptance of the successfully completed deliverables as stated in the contract.

b) The performance of the Consultants will also be monitored by the management of the PE with
the assistance of concerned or interested parties. For this purpose, the PE will prepare a status
report of all sub projects and submit them to management and, if and where appropriate, to
donors on a fortnightly basis or within such times as may be mutually agreed. Information
related to a Consultant’s performance will be added to the database of Consultants. Any issues
of attention (such as weaknesses in the department’s support or a less than satisfactory output
by a Consultant or insufficient support by a counterpart) will be discussed and appropriate
changes to the systems and structures will be agreed and implemented.
9.6 Types of Contracts
PEs spend substantial funds on various type of Consulting Services and therefore need to consider
how best to structure the contracts for those services.
Three main considerations determine what type of contract to adopt in a Consultant assignment:
as follows;
a) the nature of the assignment,

b) the distribution of risks and rewards between the Procuring Entity and the Consultant, and
c) the circumstances of the PE and of the Consultant. The level of capacity in contract man-
agement and Consulting Services supervision that the PE will be able to provide may also
be a factor in the choice.
The following contract types based on payment conditions may be used as appropriate;
• Lump-sum contract
• Time-based contract
• Retainer and/or (success) fee contract
• Percentage contract
• Indefinite-delivery contract (IDC)
Each type is described briefly in the Manual, as well as the criteria that are suggested for their
adoption and correct application.
05-620
PRINTED AT THE DEPARTMENT OF GOVERNMENT PRINTING, SRI LANKA.

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PART I : SECTION (I) — GENERAL

GUIDELINES FOR THE PROCUREMENT OF GOODS, WORKS, SERVICES AND INFORMATION

By order of the National Procurement Commission,

Eng. S.D.H. DE SILVA,

Democratic Socialist Republic of Sri Lanka

GOODS, WORKS, SERVICES AND

NATIONAL PROCUREMENT COMMISSION

CHAPTER 2 - GOVERNANCE OF PROCUREMENT ACTIONS......................................................... 18

CHAPTER 3 - PROCUREMENT METHODS & TYPES ........................................................................ 21

3.1.6 Direct Contracting .......................................................................................................................... 23

CHAPTER 4 - PROCUREMENT PLANNING.......................................................................................... 27

CHAPTER 5 – PROCUREMENT DOCUMENTS .................................................................................... 30

5.18 Retention of Money in Works Contracts ............................................................................................. 35

CHAPTER 6–PROCUREMENT PROCESS .............................................................................................. 36

CHAPTER 7 – BID/PROPOSAL EVALUATION ...................................................................................... 37

CHAPTER 8 - AWARD OF CONTRACT ................................................................................................... 42

CHAPTER 9 - CONTRACT ADMINISTRATION .................................................................................... 46

CHAPTER 10 – PROCUREMENT OF ESSENTIAL REQUIREMENTS .............................................. 47

CHAPTER 11 – PROCUREMENT OF INFORMATION SYSTEMS (IS) ............................................. 49

CHAPTER 12 – FRAMEWORK AGREEMENT ...................................................................................... 50

CHAPTER 13 – e-GOVERNMENT PROCUREMENT (e-GP) ............................................................... 51

13.4 Good Governance in Public Procurement: Key to e-GP ..................................................................... 52

CHAPTER 14 – OPEN CONTRACTING DATA STANDARD (OCDS) ................................................. 59

CHAPTER 15 – GREEN PUBLIC PROCUREMENT .............................................................................. 60

CHAPTER 16 – PUBLIC PRIVATE PARTNERSHIPS (PPP) ................................................................. 64

Action Plan Means a medium term or a long-term work plan of the

Call-Off Contract Means individual contract concluded between procuring

Foreign Funded Means a project fully or partly financed by a Foreign Funding

Framework Means an agreement with one or more firms that establishes

Fraud & Corruption Means sanctionable practices of corruption, fraud, collusion,

Procurement Guidelines Means Guidelines for procurement of Goods, Works, Services

Government Includes a Ministry, a Government Department, a Public

Green Public Procurement Means a Public Procurement, which integrates environmental

Information Means all information processing and communications-relat-

Master Procurement Means a document prepared by the Procurement Entity, listing

Procurement All documents related to the procurement process including

Procuring Entity Means a Government Institution, which the particular pro-

Procurement Manual The Procurement Manual is the detailed operational guidance

Services Means any services such as electricity, water supply, cleaning,

Works A category of procurement that refers to divisional construc-

BEC - Bid Evaluation Committee

BOQ - Bill of Quantities

B/POC - Bid / Proposal Opening Committee

CAO - Chief Accounting Officer

CAPC - Cabinet Appointed Procurement Committee

CBO - Community Based Organization

CCC - Change Control Committee

CIDA - Construction Industry Development Authority

DPC - Departmental Procurement Committee

ECP - Estimated Cost of the Procurement

e-GP - e-Government Procurement

FWA - Framework Agreement

FFA - Foreign Funding Agency

FFP - Foreign Funded Project

GOSL - Government of Sri Lanka

GPP - Green Public Procurement

GPN - General Procurement Notice