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Print Print edition: 2011-01-26

OGDCL version

Published Updated

OGDCL is a public sector company and follows transparent processes for its procurement and award of engineering contracts in line with the established rules and regulations including Public Procurement Regulatory Authority (PPRA) rules. The rules are time tested and are being followed since long in the Company.
As regards division of evaluation into two segments ie technical and financial evaluation, being based on weighted average of the marks obtained by the bidders in technical and financial evaluation, the same is in line with the guidelines framed by Asian Development Bank, World Bank and many multi-national companies.
OGDCL itself has used this criteria for many big projects over the last three decades. It will not be out of place to mention here that sometimes back OGDCL also sought advice from PPRA, who, vide their letter No F.1(11)/DD-I/PPRA/OGDCL/08 dated 7th April 2008 have clearly indicated that the proposed criteria is in line with PPRA Rules. The relevant portion of the letter is quoted below:
"The ratio of weightage to technical proposal and financial proposal is not in conflict with Public Procurement Rules, 2008... and there is no restriction / limitation on such weightage in Public Procurement Rules, 2004".
2. The proposed evaluation criteria which has now been provided upfront in the tender documents in a transparent manner, is applicable to all the parties who are serious in development of the projects and will enable the Company to select serious parties capable of expeditiously developing the fields instead of becoming hostage to non-serious and fly-by-night parties who could delay the mega project forcing OGDCL to end-up in paying much higher price of the project in the form of claims.
3. As a result of strenuous efforts, Oil & Gas Development Company (OGDCL) have made major discoveries in Kunner/Pasakhi, Tando Allah Yar, Sinjhoro, Jhal Magsi etc. However, due to vested interests of only one Company with which OGDCL has been under litigation for the last 4-5 years is hindering the fast development of the oil & gas fields of national interest by objecting on the criteria. No other Company has any objection on the same.
4. Moreover for the sake of transparency OGDCL has assigned the task of evaluation of the bids to an outside independent Consultant and for each area, an extensive system is provided in the tender documents for awarding the marks. For instance each bidder has been asked to provide the details of three projects carried out by him in the last 10 years to be eligible for the marking in the sub criteria of experience. Similarly the procurement carried out previously, its capacity and adherences to the specification are also marked on the basis of his previous experience. It is further added that even in case of awarding the contract to the lowest technically qualified bidder, the technical evaluation is carried out on the similar pattern.
5. Through this criteria the Company will be able to award contract to the best evaluated bidder based on quality and cost who may not be the cheapest ie some extra cost may have to be paid in return for higher quality of the product. It is same as all the 1300 cc cars are not priced equally in the market.

Copyright Business Recorder, 2011

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