e-PPS5 Direct Outsourcing Service Personnel Participation Guideline

01What This Invitation Means

Under the Direct Procurement Method the PE selects one provider and sends it an Invitation Letter for Direct Contracting. 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

Direct Procurement (DPM)

You quote

Commission %, incl. income tax at source

Tender security

None

Performance security

Required; amount in the letter or NOA

Advance

Possible, up to 10%, against a bank guarantee

Final terms

Agreed at negotiation

Tendering for outsourced personnel in an open or limited tender instead? See the e-PPS2 participation guideline. Invited directly for a defined service priced by unit rates rather than personnel? See e-PPS6.

02Eligibility

• Registered and operating under the laws of Bangladesh; your service personnel must be Bangladeshi citizens.
• No conflict of interest: you or affiliates did not prepare the specifications, are not hired to implement the contract, and have no close business or family tie with PE staff involved, unless resolved to the PE's satisfaction.
• Not under a restriction by the Government or any development partner in Bangladesh.
• A state-owned enterprise must show it is legally and financially autonomous, operates under commercial law and is not under the PE.
• Beneficial ownership details (owners, partners, CEO or MD, directors, shareholders with 10% or more, with NIDs) ready: they are published for contracts above Tk. 10 lakh.

You cannot:

• assign, transfer or pledge any part of the contract (CC 7);
• accept trade commissions or discounts connected with the contract, or let your staff do so (CC 22);
• take on conflicting business while the contract runs (CC 23–24).

03Read the Invitation Carefully

Unclear or contradictory? Send a clarification request through e-GP before you submit (para 12). The STD has template errors, such as references to goods and works; ask rather than guess.

04Quote Your Commission

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

Price everything that is not wages into the commission:

• supervision, recruitment, training and relief staff for leave and absence;
• uniforms, ID badges and equipment or consumables Section 2 says you supply at your own cost;
• office overhead, bank charges, the performance security and any advance payment guarantee;
• income tax at source on the commission, and your profit.

You are the only offer, but a high commission still has to pass the PE's reasonableness check and approval. Be ready to justify your rate line by line at negotiation.

05Complete the Forms

Example: specific experience For a 20-guard contract, show completed outsourcing contracts of similar size with public bodies, giving the contract number, value, dates, your role and a short justification of similarity, backed by completion certificates.

06Submit Through e-GP

• Submit before the deadline in the invitation; e-GP does not accept late submissions.
• No tender security is required.
• Clicking "I agree" and "Submit" e-signs the submission letter for your authorised person.
• Keep the offer open for the full validity period.

07Negotiation

The PE sends a letter inviting you to negotiate, with date, time and place. Expect to discuss:

• the staffing plan, named management personnel and the deployment Program;
• start date (usually 7–21 days after the contract becomes effective) and contract period;
• reports, attendance records and KPIs;
• payment schedule, any advance and how it is recovered;
• your commission, which must stay at or above the floor. Wages are not negotiated.

Agreed points go into the Minutes of Negotiations, which become part of the contract. Read them before signing. The PE may reject your offer or annul the process at any time before award.

08Award, Security and Signing

1. The NOA (Form e-PPS5-4) arrives within 3 working days of approval, with the draft contract. It forms the contract and binds you.
2. Furnish the performance security on Form e-PPS5-5, a bank guarantee from a scheduled bank, for the amount and within the working days stated in the NOA.
3. Sign the contract within the days stated in the NOA.
4. The PE publishes the contract and your beneficial ownership within 3 days of signing.

Example If the PE follows e-PPS2's 10% of the commission, a 7% commission of Tk. 75,181 means a guarantee of Tk. 7,518. If an advance of Tk. 1,00,000 is agreed, you also give a Tk. 1,00,000 advance payment guarantee (Form e-PPS5-6), which reduces as the advance is recovered.

09Running the Contract and Getting Paid

• Submit your Program for deploying all personnel before starting; the PE approves your management personnel.
• Do not change any personnel without consent; replacements must be equally or better qualified. Replace anyone the PE finds unsuitable.
• Give the PE every person's bank account, verified by the bank. Wages go into those accounts; your commission goes to your account.
• Invoice within 3 days of the payment condition; the PE pays within 5 days after certifying satisfactory service. Interest applies after 28 days' delay if CC 40.1 sets a rate.
• Income tax at source is deducted only from your commission; VAT is deducted at source. Tax-law changes leave your net receipt unchanged.
• Attend progress meetings and the management review at least every three months; submit Appendix B reports.
• Keep accounts for audit for 5 years after the contract ends.
• For an extension of time, give notice within 14 days of the event (exceptionally, at least 21 days before the completion date); the PE decides within 21 days.

You indemnify the PE against claims from your acts or your staff's, including workmen's compensation, for the months set in CC 26.2 (usually 3–6) after the contract ends.

10Penalties, Termination and Disputes

• Poor performance: if you do not correct a notified failure in time, you pay its assessed cost plus the CC 30.1 penalty percentage.
• Suspended payments: the PE may suspend payments by 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, such as stopping services for 14 days, failing to start, letting the security lapse, ignoring a notice to correct, or corrupt practice. You may terminate if a certified payment is unpaid for 42 days. Also insolvency, PE convenience or 42 days of force majeure.
• Disputes: amicable settlement; refer a PE decision to the Adjudicator within 14 days (you pay the fees, the PE reimburses half); then arbitration under the Arbitration Act 2001.

Example A driver is absent four days with no relief; the PE assesses the cost at Tk. 6,000. With a 20% penalty you pay Tk. 7,200, more than two months of commission on this contract. Keep relief staff on call.

11Completion and Getting Your Security Back

• Submit a final report and final statement; final payment follows the PE's approval.
• The PE releases your performance security through e-GP within 7 days of the completion certificate or final acceptance, if services are accepted, your obligations are discharged, no claim is pending and PE property is returned.
• The PE may hold all or part of it while a claim or dispute is unresolved, so close out complaints before the end date.
• You receive a copy of the post-contract evaluation report and may respond in writing; it stays in the procurement file.

12Response Checklist

• Eligible; no conflict of interest; all personnel Bangladeshi citizens.
• Commission at or above the floor, covering all non-wage costs and tax.
• Forms e-PPS5-1, -2 and -3 complete; attachments uploaded.
• Performance security amount known (ask if blank) and bank ready.
• Staffing plan, Contract Supervisor and relief staff ready for negotiation.
• Each person's bank account collected and verified.
• Working capital for the first month's operating costs before payment arrives.
• Submitted before the deadline; acknowledgement saved.

13Common Questions