e-PPS5 Direct Outsourcing Service Personnel Preparation Guideline

01When to Use e-PPS5

Use e-PPS5 when you will hire service personnel under the Outsourcing Policy 2025 and PPR 2025 permits you to contract one provider directly instead of tendering. The provider employs and supervises the people; they work at your premises; you pay their fixed wages straight to them and pay the provider a commission.

Nature

Physical Services (outsourced personnel)

Method

Direct Procurement (DPM)

Value

Any value, where DPM is permitted

Invited

One service provider

Price element

Commission % only

Agreed by

Negotiation

If DPM is not justified, use e-PPS2 for outsourced personnel. For a defined service rather than people placed with you, use e-PPS1BL, e-PPS1BU or e-PPS3, or e-PPS6 if it is bought directly.

02What You Prepare

03How the Price Works

Wages are not negotiated. You write the remuneration, festival and Bangla New Year bonuses and overtime for every category into the Activity Schedule from the current Outsourcing Policy circular. The provider quotes one figure: its commission as a percentage of the personnel total, including income tax deducted at source. The rate applies equally to every activity.

• Add a block (01, 02, 03 …) for each category: guard, cleaner, driver, office assistant and so on.
• Set the minimum commission in paragraph 11 of the invitation letter. The Activity Schedule note says it is not less than 5% of A. A quote below the floor is non-responsive.
• Insert the VAT rate in line C; justify any provisional sum in line D.
• Enter the resulting total as the contract ceiling in CC 37.1 after negotiation.

Example: what the commission buys At 7%, the provider gets Tk. 75,181 over a year for two drivers, about Tk. 3,133 per driver per month. Out of that it pays supervision, uniforms, relief drivers, bank charges, its performance security and income tax at source. A floor below what those costs need invites wage skimming, so set it realistically.

The STD sample shows Tk. 75,180; 7% of Tk. 10,74,020 is Tk. 75,181.40. Agree the rounding rule at negotiation.

04Fill In the Invitation Letter

Section 1 replaces the ITT and TDS. Fill in the blanks and tidy the paragraphs that came from other templates:

e-PPS5 sets no pass/fail qualification criteria. The provider reports experience, turnover, financial resources, its Contract Supervisor and equipment on Form e-PPS5-2. List in the letter the documents you want attached (trade licence, TIN, VAT, completion certificates, bank statements) so you can judge capability before negotiating.

05Requirements of PE

A. Performance Specifications. Replace every instruction with your content:

• Background, purpose, areas covered (buildings, floors, gates, vehicles) and a detailed definition of the services.
• Days, times and shifts; daily, weekly, monthly, quarterly and six-monthly activities; specific activities.
• Equipment and consumables the provider supplies at its own cost unless priced in the Activity Schedule, with specifications for any finished goods.
• Staff requirements by category under the Outsourcing Policy 2025. The STD's minimum: physically capable, of good character, uniformed with ID badges, no disqualifying criminal or disciplinary record. You may require any unsuitable person to be replaced.

B. Performance Monitoring.

Example: measurable KPI Four guards on 30-day rosters give 120 guard-days a month. At a 95% attendance KPI, more than 6 missed guard-days (114 of 120) is a breach you can notify under CC 48.

Appendices.

06Conditions of Contract Entries

There is no separate PCC: fill the blanks in the Conditions of Contract directly.

07Review and Negotiation

1. The provider submits Forms e-PPS5-1 to -3 and the priced Activity Schedule through e-GP by your deadline.
2. Check eligibility, conflict of interest and restrictions; review the experience, turnover, financial resources, supervisor and equipment on Form e-PPS5-2 against the attached evidence.
3. Confirm the commission is at or above the floor. Below it, the offer is non-responsive.
4. Invite the provider to negotiate using the sample letter, stating the date, time and logistics.
5. Negotiate the staffing plan, named management personnel, the deployment Program, start date, reporting, the payment schedule and any advance. Wages are fixed and are not negotiated.
6. Record agreed points in Minutes of Negotiations; they form part of the contract.
7. Send the result to the Approving Authority.

You may reject the offer or annul the process at any time before award (submission letter, para 7). The contract is concluded only if negotiations end satisfactorily.

08Award, Security and Signing

1. Issue the Notification of Award (Form e-PPS5-4) within 3 working days of approval, with the draft contract.
2. The NOA states the performance security amount and the working days to furnish it under Rule 123(7). Use Form e-PPS5-5 (bank guarantee from a scheduled bank).
3. The NOA states the days to sign under Rule 123(11).
4. Sign the Contract Agreement. Within 3 days publish the contract information on your notice board or website, and on the BPPA website with beneficial ownership, for at least 30 days.

Example: performance security If you adopt 10% of the commission, as e-PPS2 does, the STD sample gives 10% × Tk. 75,181 = Tk. 7,518. If you want more protection, say so in paragraph 8 of the invitation letter; the provider prices it into its commission.

Beneficial ownership (owners, partners, CEO or MD, directors and shareholders with 10% or more, with NIDs) is required for contracts above Tk. 10 lakh. State-owned enterprises are excused.

09Payments and Administration

• Before services start, approve the provider's Program for deploying all personnel (CC 11). Approve its management personnel (CC 18); no personnel change without your consent; replacements must be equally or better qualified (CC 19).
• Payment route: wages to each service person's individual account; commission to the provider's account, by crossed cheque or pay advice (CC 36).
• Timing: the provider invoices within 3 days of the payment condition; you pay within 5 days, after certifying satisfactory service (CC 38.1). Interest after 28 days' delay, if CC 40.1 sets a rate.
• Taxes: income tax at source only on the commission; VAT deducted at source. A change in tax law adjusts payments and the ceiling, keeping the provider's net receipt unchanged (CC 9, 33).
• Advance (optional): up to 10% of the original price, against an unconditional bank guarantee that reduces as the advance is recovered. No interest is charged.
• Variations: only by written agreement (CC 15). Longer engagement periods that exceed the ceiling follow CC 15 with prior review where needed (CC 17.2).
• Extensions of time: notice within 14 days of the event (or at least 21 days before expiry in exceptional cases); decide within 21 days; up to 30% of the contract time by you, 30–100% with the Head of the PE, beyond 100% with the Secretary.
• Keep progress meeting records; the provider's accounts are open to inspection and audit for 5 years.

The STD does not say how an advance is recovered. The provider's own monthly share here is only Tk. 2,830, so a 10% advance (about Tk. 1.15 lakh on this contract) cannot be recovered from the commission alone. Agree the recovery method and schedule in the Minutes of Negotiations before paying. Section 2 also mentions quarterly payment against the officer's certificate; monthly suits wages, so make CC 38.1 and Appendix B agree.

10Penalties, Termination and Disputes

• Poor or non-performance: check personnel and notify failures (CC 48). If not corrected in time, assess the cost; the provider pays it plus the CC 30.1 penalty percentage (CC 49).
• Suspension of payments: written notice stating the failure, with up to 14 days to remedy (CC 43).
• Performance security claim: after a notified breach or unpaid amount lasting 14 days or more; notify the provider of any claim to the bank (CC 31).
• Termination for default: at least 30 days' notice for a fundamental breach, such as stopping services for 14 days, failing to start, not maintaining the security, ignoring a notice to correct, or corrupt practice. The provider may terminate if a certified payment is unpaid for 42 days.
• Also insolvency, your convenience, or 42 days of force majeure.
• Disputes: amicable settlement; Adjudicator within 14 days of your decision (decision in 28 days; provider pays fees, you reimburse half; the President of the Institution of Engineers, Bangladesh appoints if you disagree); arbitration under the Arbitration Act 2001 after 28 days.

Example: penalty A driver is absent four days without relief and you assess the cost of hiring a car at Tk. 6,000. With CC 30.1 at 20%, the provider pays Tk. 6,000 + Tk. 1,200 = Tk. 7,200.

11Completion and Release of Security

• Final payment follows the provider's final report and final statement, approved by you (CC 42).
• Issue the Acceptance Certificate and prepare the post-contract evaluation report.
• Release the performance security through e-GP within 7 days of the completion certificate or final acceptance, and no later than the security's validity, once services are accepted, obligations discharged, no claim is pending and your property is returned (CC 44).
• You may hold all or part of the security while a claim or dispute is unresolved.

12Points to Correct in the Draft

The July 2026 e-PPS5 carries text from goods, works and development-partner templates. Fix these in your issued document or ask BPPA:

• Performance security amount: para 8 and CC 31 require it but nothing sets the amount or validity; the submission letter calls it "if applicable". State it in para 8.
• Para 1 reads "We have received/ applied for toward the cost…": the source of funds is missing.
• Nationality: para 4.1 allows any country except Israel, while CC 1.1(x) defines service personnel as Bangladeshi citizens; CC 8.1 is a garbled double negative.
• Deadline: para 13 refers to days set in an "Invitation for Tender (IFT)", which DPM does not have.
• Signature: the invitation letter is signed "on behalf of [name of Service Provider]"; it should be the PE.
• Commission floor: para 11 leaves "[insert percentage]"; only the Activity Schedule says at least 5%.
• Wrong wording: submission letter offers to "supply the Goods"; CC 1.1(d) and (k) define Related Services and Delivery of Goods; CC 46.4, 47.1 and 50.1 speak of "works"; the Acceptance Certificate covers "Goods", early-completion bonus, LD and construction defects; Section 2 Part B mentions "cleaning services".
• Cross-references: CC 1.1(b) points to CC 34 for the Adjudicator (it is 55); 1.1(h) to CC 18.1 for the price (it is 37.1); CC 46.1 to 1.1(k) for force majeure (it is 1.1(m)); "GCC" is used though there is only one set of CC.
• Appendices: CC 34.1 cites Appendix E for facilities, but Section 2 lists it as Appendix D; CC 17 uses Appendix C for personnel descriptions while Section 2 makes it a CV format.
• Priority: the Contract Agreement lists the Minutes of Negotiations first, but CC 5.1 places the "Draft Negotiated Agreement" seventh.
• Payment interval: Section 2 says quarterly; CC 38.1 leaves the schedule open.
• Advance: no recovery method is stated; the note cites "Form PPS5-6".
• Dates: CC 1.1(p) counts completion from signing; CC 14.1 from effectiveness.
• Forms: Form e-PPS5-3 Part D is marked "(Not Applicable)" yet asks for ten years' experience; the reporting format reads "FUNDING NEGRMATION", "Supplier/Supplier" and skips item 12.

13Issuing Checklist

• DPM grounds recorded and approved under PPR 2025; the need is outsourced personnel under the Outsourcing Policy 2025.
• Invitation letter: reference, funds sentence, deadline, validity, commission floor and performance security amount filled; signed for the PE.
• Activity Schedule: every category, number, months and current circular rates; VAT rate; provisional sums justified.
• Performance Specifications, output standards, KPIs and Appendices A–D complete.
• Conditions of Contract blanks filled: dates, start days, penalty %, payment basis, advance, interest, inspection method, adjudicator, arbitration place.
• Each service person's bank account collected before the first payment.
• Payment interval consistent in CC 38.1, Appendix B and Section 2.
• Wrong goods/works wording and cross-references corrected.

14Common Questions