e-PPS3 Physical Services Tender Participation Guideline

01Is This Tender for You?

e-PPS3 is used when a Procuring Entity buys a physical service by open or limited tender: you deliver a specified service with your own managed staff, equipment and consumables, at unit rates you quote.

Method

OTM, or LTM (enlisted) above Tk. 50 lakh

Value

Any

You quote

Unit rates, plus optional discount

Tender security

Yes, amount in TDS

Performance security

5% of contract price

Retention

Optional, set in TDS

Supplying personnel at Government outsourcing pay rates? That is e-PPS2. Small RFQs up to Tk. 15 lakh use e-PPS1BL or e-PPS1BU.

02Eligibility

• Legal capacity to contract; enrolled with the relevant professional or trade body in Bangladesh; licences listed in the TDS (e.g. DIFE).
• Taxes and social security paid; not insolvent, bankrupt or in receivership.
• Not suspended or debarred, under any name, and not restricted by a development partner.
• No conflict of interest with another tenderer (common control, same legal representative, subsidies or influence).
• Materials and equipment not originating from a country excluded in the TDS.
• Government-owned enterprises may tender if legally and financially autonomous and not dependent on the PE.
• One tender per package only; taking part in two makes all your tenders non-responsive.

03JV and Subcontractors

• JV: only if TDS 16.1 allows (never below Tk. 50 lakh). Submit the agreement on Format e-PPS3-B on a Tk. 300 stamp, or a notarised Letter of Intent with the draft agreement, plus Form e-PPS3-3 for each partner.
• The lead partner holds the highest share; every other partner at least 25%. All are jointly and severally liable; the lead receives payments and all partners sign the contract.
• Partners' figures are added, but each must meet the minimums in TDS 16.2.
• Subcontractors: up to 30% of the services by value, named on Form e-PPS3-4. A subcontractor may join several tenders, only as subcontractor. New subcontracting after signing needs HOPE or AO approval; doing it without approval is a fundamental breach.

04Qualification and Documents

Upload everything at submission. The TEC may let you fix a minor documentation gap, but never anything affecting your prices or a mandatory criterion.

05Price the Activity Schedule

• Enter a unit rate in figures and words for every item. Rates include profit, overhead and all taxes, duties, VAT and levies as of 28 days before the deadline, and stay fixed for the contract.
• An item you leave unpriced is not paid and is deemed covered by your other rates.
• Offer any unconditional discount as a percentage in the submission letter; it applies equally to every item in the lot. For several lots you may offer a cross-discount if awarded more than one.
• The physical contingency line, if any, is filled by the PE (max 3%).
• e-GP makes no arithmetic correction: check every rate before submitting.

Front-loading (inflating mobilization or early items) can lead the TEC to raise your retention up to 20% of the contract price. Price each item at its real cost.

06Avoid Failing the SLT Test

With two or more responsive tenders, the TEC computes a weighted average: 50% the average of all quoted prices, 20% the official cost estimate, 30% an estimate adjusted by the national price index for recent physical services awards. It then subtracts one standard deviation of the quotes. Any tender below that limit is rejected.

Example Estimate Tk. 80 lakh; index-adjusted figure Tk. 76 lakh; quotes 70, 74, 78 and 58 lakh. Weighted average Tk. 73.8 lakh, standard deviation about Tk. 8.4 lakh, lower limit about Tk. 65.4 lakh. The Tk. 58 lakh tender is rejected; the Tk. 70 lakh tender wins.

If you are the only responsive tenderer Your price is compared directly with the estimate: more than 20% away and you are non-responsive.

You cannot see the estimate or others' prices, so price to your real cost plus a fair margin rather than chasing the lowest possible figure.

07Tender Security and Submission

• Buy the e-TD through an e-GP member bank by the deadline. Ask questions through e-GP before the IFT cut-off.
• Arrange the tender security for the TDS amount through an e-GP registered bank, valid 28 days beyond tender validity.
• Submit technical and financial parts together in one e-GP submission, before the deadline; keep the acknowledgement. Modify or withdraw only before the deadline.
• Use readable, virus-free files.

Your tender security may be forfeited if you withdraw after opening within validity, fail to give the performance security, refuse to sign, or engage in corrupt or similar practice.

08Evaluation and Negotiation

1. e-GP opens the technical part; prices stay encrypted until technical evaluation is done.
2. Missing forms, priced schedule or tender security: rejected at once.
3. The TEC checks for material deviations, reservations or omissions. Answer clarifications within the time given (at least 3 working days) without changing your tender.
4. Prices are evaluated with discounts and tested for SLT.
5. Ties: collusion is checked first; then past performance with the PE, then with other PEs. Never a lottery.
6. The lowest evaluated tender is post-qualified; the TEC may visit your premises.
7. Negotiation covers technical points only (equipment and management staff availability, delivery plan). Prices are not negotiated. Sign the minutes and initial the draft contract.

09Award, Securities and Signing

1. You receive the NOA with the draft contract; it binds you until signing.
2. Give the performance security, 5% of the contract price, by pay order, bank draft or bank guarantee (Form e-PPS3-10), within 7, 10 or 14 working days, valid 28 days beyond the Intended Completion Date.
3. Sign within 14, 21 or 28 days; in a JV, all partners sign.
4. Your contract details and beneficial ownership (above Tk. 10 lakh) are published.

Example On a Tk. 70 lakh contract the performance security is Tk. 3.5 lakh. If the TDS sets 5% retention, up to another Tk. 3.5 lakh is held from your invoices: Tk. 7 lakh in total, the 10% cap. A government-owned enterprise gives no performance security but has 10% retained instead.

Unsuccessful? Ask for a debriefing on your own tender; you may complain under PPA 2006 Sections 29–30 and PPR 2025 Rules 72–77.

10Running the Contract and Getting Paid

• Submit your Program for approval before starting; start within the PCC days (usually 7–21) after the contract becomes effective.
• Keep your approved management staff; changes need consent and equal or better replacements. Changes to the Activity Schedule need prior written approval.
• Payment follows PCC 38.1, time-based (e.g. monthly) or by milestones, after the PE certifies satisfactory service. Invoice within 3 days of the condition; the PE pays within 5 days; interest after 28 days' delay if the PCC sets a rate.
• Meet the KPIs: e.g. manpower attendance of at least 95%, timely tasks, safety, few incidents or complaints, good inspection scores. Keep your own records.
• For an extension, give notice within 14 days of the event; the PE decides within 21 days.
• Keep accounts for audit for 5 years; do not take third-party commissions.
• Securities back: within 7 days of the completion certificate or final acceptance, once all services are accepted, obligations discharged, no claim pending and PE property returned.

11Penalties, Termination and Disputes

• Poor performance: uncorrected failures cost you the assessed cost plus the PCC penalty (usually 15–25% of it).
• Payments may be suspended with up to 14 days to remedy; the security may be claimed after a notified breach lasting 14 days.
• Termination for default on 30 days' notice, e.g. stopping services for 14 days, failing to start, letting security lapse, ignoring a notice to correct, unauthorised subcontracting. You may terminate if a certified payment is unpaid for 42 days.
• Disputes: amicable, then the Adjudicator within 14 days of a PE decision (you pay fees, the PE reimburses half), then arbitration.

Example A missed deep-clean assessed at Tk. 20,000 with a 20% penalty costs you Tk. 24,000.

12Tender Checklist

• One tender only; JV only if allowed, with agreement or LoI and partner forms; subcontracting within 30% and named.
• Licences, TIN, return acknowledgement for the TDS year, VAT/BIN uploaded.
• Completion certificates, turnover statement and liquid asset evidence dated correctly.
• Key staff forms, equipment statement, origin and conformity evidence.
• Every item priced at real cost; no front-loading; discount stated in the submission letter if offered.
• Tender security valid 28 days beyond validity.
• Submission letter unaltered and e-signed; acknowledgement saved.
• Working capital planned until the first payment; performance security ready.

13Common Questions