e-PPS2 Outsourcing Service Personnel Participation Guideline

01Is This Tender for You?

e-PPS2 is used when a Procuring Entity hires service personnel under the Government's Outsourcing Policy. You recruit, employ and supervise the people; they work at the PE's premises; the PE pays their fixed wages directly to them and pays you a commission.

Method

Open (OTM) or Limited (LTM, enlisted only)

Value

Any

You quote

Commission %, incl. income tax

Tender security

Yes, amount in TDS

Performance security

10% of your commission

Retention

None

Bidding to deliver a defined service for a total price, such as cleaning a building to set standards with your own managed team? Look for e-PPS1BL, e-PPS1BU (up to Tk. 15 lakh), or e-PPS3 (open tender) instead. Invited directly by a PE without a tender? See e-PPS5.

02Eligibility

• Legal capacity to contract; enrolled with the relevant professional or trade organisation in Bangladesh.
• Valid licences the TDS lists, for example from the Department of Inspection for Factories and Establishments (DIFE).
• Taxes and social security contributions paid; not insolvent, bankrupt or in receivership.
• Not suspended or debarred, under any name, and not restricted by a development partner.
• Under LTM, enlisted with the PE.
• Beneficial ownership details ready to be published if you win.

You cannot:

• tender as a joint venture: the tender is non-responsive;
• subcontract or assign any part of the services;
• propose anyone other than Bangladeshi nationals as service personnel;
• submit or take part in more than one tender per package: all your tenders are rejected;
• have a conflict of interest with another tenderer (common control, same legal representative, subsidies or influence).

03Qualification and Documents

All criteria are pass/fail. Upload:

Example: liquid asset For a Tk. 5 crore, 24-month contract the PE may ask for about Tk. 40 lakh, roughly two months of payments. That is the wage bill you could need to cover before the first monthly payment arrives, so a credit commitment letter is often the practical route.

04Quote Your Commission

The PE fills the Activity Schedule with each personnel category, numbers, person-months and the Government's consolidated pay, festival and Bangla New Year bonuses and overtime. That total is line A. You enter one figure: your commission percentage of A (line B), which includes your income tax deducted at source. The same rate applies to every activity. VAT and any provisional sums are added after.

Your commission must cover everything that is not wages:

• supervision, recruitment, training and replacements for leave or absence;
• uniforms, ID cards and any equipment or consumables the specification says you supply at your own cost;
• office overhead, bank charges, the performance security and the cost of carrying wages if payment is late;
• income tax at source on the commission, and your profit.

The commission is fixed for the contract. Only Government pay revisions under the Outsourcing Policy change the wages, with HOPE approval; your percentage stays the same.

05Propose Your Personnel

The TEC scores the people you propose. TDS 41.6 shows the points for each position and the sub-criteria for each person: typically education, experience, a practical or written test, an oral exam and a physical check.

• Your tender needs at least 70% of the technical points; below that it is non-responsive however low your commission.
• Each person needs 60%. If one falls short and you are lowest, you must replace them with a competent person at negotiation.
• Attach a CV in the PE's format (Appendix D) with certificates for every person. Missing certificates cost points.
• Propose people who are genuinely available for the whole contract period; you will have to prove it at negotiation.
• Check each person's NID, background and physical fitness now; the PE can demand replacement of anyone unsuitable later.

Why quality matters A tenderer quoting 5% whose guards score 65% overall is non-responsive, so its financial offer is never opened. A 6% tender with well-documented staff scoring 76% wins.

06Tender Security and Submission

• Buy the e-TD through an e-GP member bank no later than the day before the deadline.
• Ask questions through e-GP before the IFT cut-off; answers come within 5 working days. Attending the online pre-tender meeting is optional.
• Arrange the tender security for the TDS amount through an e-GP registered bank, valid 28 days beyond tender validity.
• Submit technical and financial offers together in one e-GP submission before the deadline; you receive an acknowledgement. Late tenders are impossible.
• You may modify, substitute or withdraw only before the deadline.
• Use readable, virus-free files; corrupt files are not evaluated.
• Do not alter the submission letter. It confirms no JV or subcontractor, Bangladeshi staff only, one tender, and no reservations.

Your tender security may be forfeited if you fail to give the performance security, refuse to sign, or are found in corrupt or similar practice.

07Evaluation

1. e-GP opens technical offers only; financial offers stay encrypted.
2. Missing forms or tender security: the tender is rejected at once.
3. The TEC checks eligibility, qualification evidence, compliance with the Performance Specifications, and scores your personnel.
4. Answer any clarification from the TEC Chair by the deadline, without changing your tender.
5. After HOPE approves the technical report, only technically responsive financial offers are opened.
6. Commissions below the threshold are rejected. No arithmetic correction is made.
7. The lowest evaluated tender wins. Ties go to the higher technical score or better past performance with the PE, never a lottery.

Do not contact the PE about your tender between opening and award unless asked; attempts to influence can make your tender non-responsive.

08Post-qualification and Negotiation

• The TEC verifies your eligibility and qualification evidence and may visit your office. Failing post-qualification passes the award to the next tenderer.
• Negotiation covers technical aspects only: proof that all personnel are available for the whole period, replacement of anyone under 60%, the service delivery plan, duration and staffing.
• Your commission is not renegotiated.
• Sign the agreed minutes and initial the draft contract.

09Award, Security and Signing

1. You receive the Notification of Award with the draft contract. It binds you until the contract is signed.
2. Furnish the performance security, 10% of your commission, by pay order, bank draft or bank guarantee (Form e-PPS2-8), within 7, 10 or 14 working days depending on contract size, valid until 28 days after the Intended Completion Date.
3. Sign within 14, 21 or 28 days of the NOA.
4. Your contract details and beneficial ownership (for contracts above Tk. 10 lakh) are published.

Example With a 6% commission of Tk. 64,441, the performance security is Tk. 6,444. No money is retained from your payments.

Unsuccessful? You may ask for a debriefing on your own tender, and you may complain and appeal under Sections 29 and 30 of the PPA 2006 and Rules 72–77 of PPR 2025.

10Running the Contract and Getting Paid

• Before starting, submit a Program showing the deployment of all personnel for approval. Start within the days set in the PCC (usually 7–21) after the contract becomes effective.
• The PE approves your management personnel. Do not change any personnel without consent; replacements must be equally or better qualified.
• Give the PE each person's bank account. Wages go straight into those accounts; your commission goes to your account.
• Payment is monthly, after the PE certifies satisfactory service. Invoice within 3 days of the condition being met; the PE pays within 5 days. Interest applies after 28 days' delay if the PCC sets a rate.
• Income tax at source is deducted only from your commission; VAT is deducted at source.
• Keep accounts and records for inspection and audit for 5 years. Do not take commissions or discounts from third parties.
• Attend progress meetings and the quarterly management review; keep attendance and duty logs.
• For an extension of time, give notice within 14 days of the event; the PE decides within 21 days.

You indemnify the PE against claims arising from your acts or those of your staff, including workmen's compensation. The PE must be notified of such claims within the months set in the PCC (usually 3–6) after the contract ends.

11Penalties, Termination and Disputes

• Poor performance: if you do not correct a notified failure in time, you pay its assessed cost plus a penalty of the PCC percentage (usually 15–25%).
• Suspended payments: the PE may suspend payments with notice, giving up to 14 days to remedy.
• Security claimed: after a notified breach or unpaid amount lasting 14 days or more.
• Termination: 30 days' notice for a fundamental breach, for example stopping services for 14 days, failing to start, letting the security lapse or ignoring a notice to correct. You may terminate if a certified payment is unpaid for 42 days. Also for insolvency, PE convenience or 42 days of force majeure.
• Disputes: amicable settlement, then the Adjudicator within 14 days of a PE decision (you pay the fees, the PE reimburses half), then arbitration in Bangladesh.

Example A guard post is left unmanned for three nights; the PE assesses the cost at Tk. 6,000. With a 20% penalty you pay Tk. 7,200. Keep relief staff on call so posts are never left empty.

12Tender Checklist

• Tendering alone: no JV, no subcontracting, one tender per package.
• Licences valid (trade licence, DIFE or others in TDS 5.10); enlisted with the PE if LTM.
• TIN, return acknowledgement for the TDS assessment year, VAT/BIN uploaded.
• Completion certificates, turnover statement and liquid asset evidence dated as required.
• Contract Supervisor form and equipment statement complete.
• CVs and certificates for every proposed person; all Bangladeshi and available for the full period.
• Commission at or above the TDS minimum and covering all non-wage costs.
• Tender security arranged and valid 28 days beyond validity.
• Submission letter unaltered and e-signed; acknowledgement saved.
• Working capital planned for at least the first month's wages.

13Common Questions