Law: Public Procurement Regulatory Authority Ordinance (XXII of 2002)

Section: 1(2)(3),2(j),26

Public Procurement Regulatory Authority Ordinance (XXII of 2002)--- ----S. 1(2)(3), 2(j) & 26---Public Procurement Rules, 2004, Rr.2(c), 3, 4, 20, 34(2), 40, 42 & 48---Auction of contract of luggage vans attached with railway trains running on specified routes---Failure of auction proceedings to procure satisfactory offers and return of call-deposits to bidders---Offer of revised bid by respondent-bidder finalized through private negotiation---Acceptance of revised bid and awarding of contract to respondent for one year through letter issued by authority without signing any formal agreement---Validity---Authority could not show any law, rule, regulation and instruction permitting Pakistan Railways to award contract without inviting bids---Authority had not undertaken fresh process of inviting bids through proper publication---Pakistan Railways being a department of Federal Government would fall within definition of "procuring agency" as given in S.2(j) of Public Procurement Regulatory Authority Ordinance, 2002---Concept of open competitive bidding introduced by Public Procurement Rules, 2004 was with a view to ensure a transparent exercise of powers by a procuring agency in awarding of its contract-Awarding of contract through negotiations was specifically prohibited by R.40 of Rules, 2004--Transparent exercise of powers by public authorities in awarding contracts of valuable rights was always insisted---Emergent situation to bypass competitive bidding process as provided in R.42(v) of Rules, 2004 did not exist in the present case---No order of competent authority was available on record for adopting process of negotiation for awarding contract to respondent---Process for award of contract to respondent was not only without lawful authority, but same had been conducted in a non-transparent manner, thus, could not be sustained in eye of law---Running of contract by respondent on account of injunctive order of High Court would not justify to give protection to illegal and non-transparent method of awarding contract by authority---No complaint in the present case had been made to Committee under R.48(2) of Public Procurement Rules, 2004 nor had any order…

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