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Chapter-8 Provision Relating to Conduct

Chapter-8 Provision Relating to Conduct
61. Conduct of the Official Involved in Public Procurement Proceedings:

(1) Any officials involved in the act of formulating procurement plan, operating procurement proceedings, implementing procurement contract or other act as prescribed relating to procurement of the Public Entity, shall have to follow the following conduct:-
(a) Discharging one’s duty impartially so that bidders fairly compete in the procurement proceedings,
(b) Operating procurement proceedings in public interest, (c) Not committing an act conflicting interest with the
procurement from his/her work or conduct or behavior,
(d) Keeping confidential all proprietary information of the bidder known by him /her in the course of the procurement proceedings,
(e) Not working with a person, firm, organization, company and any other institution of private nature with which s/he had had dealings of procurement at the time of holding post for two years after retirement,
(f) If s/he knows that his/her nearest relatives have participated as a bidder or proponent in the procurement proceedings of his/her involvement, not taking part in such procurement proceedings by giving immediate notification to one level   higher authority,
Explanation: For the purpose of this clause nearest relative means husband, wife, father, mother, son, daughter of a joint family, mother-in-law, father-in-law, elder brother, younger brother, elder sister, younger sister, son-in-law, sister-in-law or brother-in-law.
(g) Not committing an act in contravention of prevailing law,  while carrying out procurement proceedings,
(h) Not committing corrupt or fraudulent practice nor involving in such act,
(i) Not colluding or involving in a group prior to or after
submitting bid or proposal with the objective of forbidding or
causing to be forbidden the benefit of competition.

62. Conduct of Bidder or Proponent: (1) A bidder or proponent shall have to
accomplish such obligation as referred to in this Act or Regulations made
thereunder, procurement contract and other documents relating to procurement.
(2) Without prejudice of the generalities of the provision of Sub-section
(1), a bidder or proponent shall not carry out or cause to be carried out the
following act with the intention of making interference in the procurement
process or the implementation of procurement contract:-
(a) Giving or offering directly or indirectly improper inducement,
(b) Submitting a fact by distortion or misrepresentation,
(c) Engaging in corrupt or fraudulent practice or involving in such
(d) Intervening in the participation of other competing bidder or
proponent to be involved in any way in the proceedings
relating to bid or proposal,
(e) Commit an act of threatening directly or indirectly to cause
harm to the body, person or property of any person to be
involved in the procurement proceedings or coercive act,
(f) Making collusion or involving in groupism prior to or after
submission of bid or proposal with the objective of allocating
procurement contract among the bidders or proponents or
fixing the price of bid or proposal artificially or
noncompetitively or otherwise forbidding the Public Entity of
the benefit of open and free competition,
(g) Contacting the Public Entity from the time of the opening of
bid or proposal until the notice of acceptance of bid or
proposal is given with the objective of causing interference
upon bid or proposal or committing an act of interference in
the examination or evaluation of bid or in the evaluation of
(3) A bidder responsible for preparing bidding documents or
specifications of a procurement contract or for supervising the implementation
procurement contract or a person or firm or organization or company affiliated
with him/her, or an employee working in such firm or organization or company
cannot participate in the bidding proceedings of such procurement.
Provided that this provision shall not be applicable in the case of a turn
key procurement contract or procurement contract so concluded as to carryout
both the design and construction work.
63. Blacklisting and Exclusion From the Blacklist: (1) The Public Procurement
Monitoring Office may blacklist a bidder, proponent, consultant, service
provider, supplier, construction entrepreneur or other person, firm, organization
or company in the following grounds from one year to three years on the basis
of seriousness of his/her/ act:-
(a) If it is proved that s/he has committed an act contrary to the
conduct as referred to in Section 62,
(b) If a proponent of a proposal selected for acceptance does not
come to sign the contract pursuant to Section 38,
(c) If it is proved latter that s/he had committed substantial defect
in implementing procurement contract or had not substantially
fulfilled obligation under the contract or the work carried out
according to the procurement contract is not of the quality as
per the said contract,
(d) If convicted from a court of law in a criminal offense liable to
be disqualified for taking part in procurement contract,
(e) If s/he/it is proved of having signed the procurement contract
by falsifying qualification or misrepresenting,
(f) Any other conditions as prescribed.
(2) A bidder, proponent, consultant, service provider, supplier,
construction entrepreneur or other person, firm, organization or company
blacklisted pursuant to Sub-section (1) shall be debarred from taking part in the
procurement proceedings of a Public Entity up to that period.
(3) Notwithstanding anything contained elsewhere in this Section, a
person, firm, organization or company blacklisted by a competent authority
under prevailing law for not paying a loan of a bank or financial institution shall
not be eligible to take part in the procurement proceeding of a Public Entity
during the period of such blacklisting.
(4) If the person, firm, organization or company ineligible to take part in
the public procurement proceedings pursuant to Sub-section (2) or (3) is found
to have taken part in a procurement of a Public Entity, no action shall be taken
over his/her bid or proposal.
(5) Other provision concerning blacklisting pursuant to Sub-section (1)
shall be as prescribed.
(6) A bidder, proponent, consultant, service provider, supplier,
construction entrepreneur or other person, firm, organization or company
blacklisted pursuant to Sub-section (1), (2), (3), (4), and (5) shall be excluded
from the blacklist as per the criteria prepared by the Public Procurement
Monitoring Office for exclusion from the blacklist.


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