Amendments Proposed to the Public Procurement Act

The government has proposed amendments to the Public Procurement Act 2063 through an ordinance, introducing separate provisions for the procurement of fertilizers, medicines, and information technology. The amendment includes the incorporation of the reverse auction method, which clarifies the process of accepting bids below the estimated cost. Additional measures such as low bid control in procurement processes, electronic bidding systems, and mechanisms for employee disciplinary actions and rewards have also been introduced. 17 Baishakh, Kathmandu.

The government is preparing to amend the Public Procurement Act 2063 and is set to issue an ordinance for this purpose. The ordinance recommended to President Ram Chandra Paudel includes changes to the 2063 Act. The government cited problems arising from the lack of separate provisions for the procurement of fertilizers, medicines, and IT equipment as the motivation behind these amendments.

The new proposal provides a clear definition of domestic goods. According to this, goods produced from indigenous raw materials or those imported raw materials which incorporate 30 percent value addition in labor, raw materials, and components within domestic industries will be considered domestic products. Additionally, the requirement to publish electronic bid notices in newspapers has been made optional.

The government has introduced the ‘reverse auction’ method into the procurement process. This involves initiating a bidding process up to the maximum estimate set by the public body and allowing bidders who submit lower prices within a specified period to compete, ultimately selecting the lowest bidder. This procedure aims to prohibit the fragmentation of large packages to limit competition.