Nepal's public procurement system is governed by the Public Procurement Act 2007 and its associated regulations. The law aims to ensure transparency, accountability, and fair competition in public procurement processes and to provide value for money for the government.
Under the Public Procurement Act, there are three main methods for conducting public tenders:
Open Competitive Bidding: Open competitive bidding is the most commonly used method for public procurement in Nepal. It involves publishing a notice inviting bids in a national daily newspaper, or on a government website, and any eligible bidder can participate. The procurement entity will evaluate the bids based on predetermined criteria, and the contract will be awarded to the bidder who meets the requirements and offers the best value for money.
Limited Competitive Bidding: Limited competitive bidding is used in specific situations when it is not practical to use open competitive bidding. This method involves selecting a limited number of potential bidders to participate in the procurement process based on specific criteria, such as previous experience, technical expertise, or financial capacity. The procurement entity will evaluate the bids based on predetermined criteria, and the contract will be awarded to the bidder who meets the requirements and offers the best value for money.
Direct Procurement: Direct procurement is used in exceptional circumstances when there is only one supplier who can provide the goods or services, or when there is an urgent need for the goods or services, and the procurement process cannot be delayed. In this method, the procurement entity can directly negotiate with the supplier to purchase the goods or services.
In addition to the above methods, the Public Procurement Act also outlines procedures for procurement planning, pre-qualification, bidding, bid evaluation, contract award, and contract management. The law also establishes the Public Procurement Monitoring Office (PPMO) as the regulatory authority responsible for overseeing and monitoring the public procurement process in Nepal.
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