1. Background Working:
Any Proposed project that is ready for procurement or finance have an extensive study on
it’s feasibility and related issues. This project passes through various phases before reaches to
Procurement department.
In Planning Section, a project is tested and evaluated on the bases of LOAD FLOW studies.
These Load flow studies includes studies regarding Load forecasting of a particular area. It
checks that the where we need to develop infrastructure regarding Power System to
meet present and future Demand.
As NTDCL is concerned with Construction of EHV Sub stations and Transmission lines, To
transmit power from generation ends to load centers. Load Forecasting provides us material
either about Generation expansion Planning or Transmission Expansion Planning. Usually it
includes ‘Augmentation’, New Grid Station and evacuation of Electricity from New or old
Generation Stations, through building a New Transmission lines.
After Planned and Financed, it is send to Design Section of the NTDCL , which is headed by
Design Chief Engineer of NTDCL. Instruments and Equipment of specific rating and
specifications is selected in this section and a complete document is prepared out here named
as BOQ.
Billing of Quantities is a complete document having details of all equipment and materials
regarding their specifications, rated values, prices, their physical and mechanical strengths etc.
After the working on proposed project in design department it is now ready for procurement.
Material Procurement and Planning Department
Procurement is a process of purchasing materials and services. The procedure involves
processing and preparation of a Demand as well as the end receipt and approval of payment. It
often involves
i) Finance Planning.
ii) standards determination,
iii) specifications development,
iv) supplier research and selection,
v) value analysis,
vi) financing,
vii) price negotiation,
viii) making the purchase,
ix) supply contract administration,
x) inventory control and stores, and
xi) disposals and other related functions.

2. On the basis of Functions this Department is Further Divided into Three Sections are;
i) Material Management.
ii) Material Control.
iii) Inventory control.
So as there are Three Managers working under One Chief Engineer of MP&M.
i) Manager Procurement.
ii) Manager Finance.
iii) Manager Inventory.
There are Four Ware Houses under Manager Inventory.
Material Control:
This Section is responsible for the Transfer of required material from the Manufactured area to
a Particular Ware house, located nearby a site where equipment is going to be installed.
Inventory Control:
Material Control Section handover control of Equipment and material to Inventory Control
Section n ware houses. This Section has to assure that the Material and Equipment is safe and
sound if not it directly reports to MP&M department directly.
Material Management:
After Inventory Control Section or from Wear houses, this is responsibility of the Material
management team to move further operations as to keep check on the material that moves
from the ware houses to proposed site, where it is going to be used.
Process of Tendering
Tender a sealed Bid or offer document submitted in response to a request for tenders and
containing detailed information on requirements and terms associated with a potential
contract.
Information for bids:
The Working on Tender floating starts from IFB, prepared by Design Section Department.
This is a general report prepared on the proposed project.
It is based on “International Competitive Method”. It is responsibility of this Department to
develop an environment of competition between the companies so that best work will be
produced.

3. Tender Floating:
Tender on the basis IFB floats on the Daily Newspaper, at least 15 days before the Tender
Opening. It’s Layout is given as below
Title Of The Tender
Designation
Scope Of Work
No. of Lots
Resource Network
The Concerned Authorities of Companies who are interested in the Tender, Purchases this
Volume 1 It is consists of two parts, First one is Tender Book while the other one is BOQ.
Volume 2 consists of Technical guide of the respective project.
Tender Book volume 1 part 1 is a complete document of the proposed budget circling it’s every
parameter from it’s legal report to it’s implementation details. It consists of Number of Security
forms to whom they concerns are used, when any type of contract is going to be done between
respective entities. It completely defines the rule and regulations to be implemented on the
respective project holding companies. It assures Transparency.
BOQ volume1 part 2 which is Billing of Quantities is also a complete guide book regarding the
prices and details of the material being used in a project under the defined rules of PEPRA.
Three Major components of BOQ are
i) Quantities.
ii) Specifications.
iii) Standards.
Working on Tender by Respective Firms:
When Tenders are purchased by local companies or by local agents of the international
companies. They are bound to perform their work on tender within 15 days minimum. They
have to perform their both on Economical and technical aspects of the respective project lots
they are applying for.
Types of Bidding:
There are two types of bidding;
i) Financial Bidding.
ii) Technical Bidding.

4. Methods of Bidding:
i) Single Stage and Single Envelope.
ii) Single Stage and Double Envelope.
In “Single Stage and Single Envelope” method, First Financial evaluation occurs then Technical
evaluation occurs in 30 to 45 day time frame. Both financial and Technical Bids are in the same
Envelope during the time of submission of bid.
In Single Stage and Double Envelope Method, both Financial and Technical Bids are in different
envelopes. Firstly Technical Evaluation being done by the expertise of the NTDCL. Companies
that go through this examination means they are found technically sound are then set ready for
the financial evaluation
In Volume 2 Technical guide of the project “Different testing methods” are proposed for the
checking of the equipment reliability and mechanical strength. i.e. FAT is performed at the start
when we approach a particular company.
Bid Security:
it is an amount that every bidder has to submit with bidding amount. It assures the seriousness
of the bidder in the bidding process. Normally it ranging from 2% to 5% of the total amount of
his bidding proposed. At the end of the bidding process when notification of award issued to
one of the successful bidder, bid security returned to their bidders.
Bank Security:
It is the amount cut down to about 10% of the total bill of the BOQ has to deliver the respective
firm who provides goods and materials to the company. It assures the safe and sound delivery
of the material and equipment to the destination. As, Equipment got test successfully this bank
security returned back to the firm.
Closing of Tender Process:
Bidding Evaluation Report:
At the completion of Bidding process and in the light of Financial and Technical evaluation
Reports, A final Bidding Evaluation Report is prepared. One copy of this report is also send to
the respective companies who participated in the Bidding process.
Notification of Award:
After making BER and finalizing the process the Letter of success “Notification Of Award’ is send
to the respective company , who got the bidding process.

5. Performance Security:
After sending NOA to the company 10% amount of it’s amount will kept by the NTDCL as a
“Performance Of Security” that will be returned after successful delivery by the firm.
Signing Of Contract:
Finally an Agreement is sign between the Two parties after the successful completion of Bidding
process, This signing document contain each and every Term Of Reference, on which contract
lies and both groups has to comply with these rules.
Overview of a bidding process
Project Title:
Power Transmission Enhancement Investment Program (TRANCHE-IV).
Bid/ Contract Title:
Procurement of 500KV T/Line Material Under Loan No. 3203 Power Transmission Enhancement
Investment Program TRANCHE-4.
Bid No. ADB-79-2015
Loan No. 3203
Collection of Bids:
Rules have been followed by the management of the procurement team and right at 11:00 am ,
collection of bids from the Bidders was closed. And right at 11:31 am opening of bidding
process starts.
Type of Bid:
It is of type “Single Stage Single Envelope” means Financial and Technical Bids both are in same
Envelope.
Process:
Firstly Financial bids are opened in the presence of higher management of MP&M , Internees
and agents of 31 companies. Process seems to be transparent. Mostly Firms belong to China.
Flows in Bidding Process:
i) Numbers of Bids are received then expected 31 out 48 registered.
ii) Agents of Different companies are not satisfied with the bidding process, they have some
doubts on the transparency of bidding process.
iii) Environment was not friendly, boredom prevailed all over in the auditorium during the
bidding process, there should be some sort of activities for the refreshment of bidders and
audience.