e-PPS6 Direct Physical Services 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 deliver a defined service with your own staff, equipment and materials, priced item by item in an Activity Schedule.

Method

Direct Procurement (DPM)

You quote

All-inclusive unit rates

Tender security

None

Performance security

Only if para 8 requires it

Advance

Possible, up to 10%, against a bank guarantee

Final terms

Agreed at negotiation

Supplying people under the Government's Outsourcing Policy, where wages are fixed and you earn a commission? That is e-PPS5. Competing in an open tender for services? See e-PPS3.

02Eligibility

• Not a national of, or registered in, a country the PCC excludes (the invitation names Israel); materials and equipment from eligible countries.
• No conflict of interest: you or affiliates did not provide related consulting for the project, and have no close business or family tie with PE staff involved, unless resolved to the PE's satisfaction.
• Not restricted by a development partner, nor debarred or suspended in Bangladesh.
• A state-owned enterprise must show it is legally and financially autonomous, operates under commercial law and is not dependent on 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 (GCC 7); clear any subcontracting with the PE in writing first;
• accept trade commissions or discounts connected with the contract (GCC 22);
• take on conflicting business while the contract runs (GCC 23–24);
• disclose the PE's confidential information (GCC 25).

03Read the Invitation Carefully

The draft STD still carries text from the outsourcing template, such as payment into "Service Personnel" accounts and tax on a "commission part". If your contract keeps it, ask the PE to clarify before you price.

04Price the Activity Schedule

The PE fills items, units and quantities. You enter a unit rate in figures and words for each; e-GP totals them. Each rate must include profit, overhead and all taxes, duties, VAT and fees. Nothing is added later.

• Price mobilisation and demobilisation, equipment, supervisor, consumables, transport and space as separate items where the schedule lists them.
• Leave the physical contingency line alone; the PE fills it (at most 3%).
• Include the cost of any performance security and advance guarantee, and of carrying costs until payment arrives.
• Avoid front-loading mobilisation or equipment; the PE will compare each rate with its estimate.

05Submit Your Offer

• Section 3 is a short submission letter: you confirm the validity of the offer, and that the total price is in the e-GP grand summary. Selecting "I agree" and "Submit" e-signs it.
• Submit before the deadline; no tender security is needed.
• Attach anything the invitation asks for, such as trade licence, TIN, VAT/BIN, past contracts, equipment list and your Contract Supervisor's CV (Appendix C format). The STD has no information form, so a tidy capability pack helps.

06Negotiation

The PE sends a letter inviting you to negotiate (Format A). Expect to discuss:

• rates the PE thinks are above its estimate, and quantities;
• staffing, management personnel and the deployment Program;
• start date (usually 7–21 days after the contract becomes effective) and duration;
• KPIs, reports, payment interval, any advance and how it is recovered;
• performance security, if required.

Example The PE's estimate for a cleaner is Tk. 16,500; you offered Tk. 18,000. Agreeing Tk. 17,000 for 96 cleaner-months lowers your price by Tk. 96,000. Know your rate breakdown so you can see which concessions you can afford.

Agreed points go into the negotiated agreement, which forms part of the contract. Read it before signing. The contract is concluded only if negotiations end satisfactorily.

07Award, Security and Signing

1. The NOA (Form e-PPS6-1) arrives within 3 working days of approval, with the draft contract. It forms the contract and binds you.
2. If required, furnish the performance security on Form e-PPS6-2, 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. If an advance is agreed, provide the advance payment guarantee (Form e-PPS6-3) for the same amount.
5. The PE publishes the contract and your beneficial ownership within 3 days of signing.

Example On a Tk. 24,61,700 contract, a 5% security (if the PE uses that rate) is Tk. 1,23,085. An advance of Tk. 2,40,000 needs a guarantee of Tk. 2,40,000, which falls as the advance is recovered.

08Running the Contract and Getting Paid

• Submit your Program for deploying all personnel before starting; the PE approves your management personnel. Do not change personnel without consent.
• 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 PCC 40.1 sets a rate.
• Payment goes to the bank account in PCC 36.1, verified by your bank.
• Attend progress meetings and the management review at least every three months; submit Appendix B reports.
• Additional services only by written agreement; get the PE's prior approval before changing personnel or the Activity Schedule.
• 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.
• Keep accounts for audit for 5 years after the contract ends.

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

09Penalties, Termination and Disputes

• Poor performance: if you do not correct a notified failure in time, you pay its assessed cost plus the PCC 30.1 penalty percentage.
• Suspended payments: the PE may suspend payments by notice, giving up to 14 days to remedy.
• Security claimed (if held): 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 a required 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 One floor is left uncleaned for three days; the PE assesses the cost at Tk. 9,000. With a 20% penalty you pay Tk. 10,800. Keep relief staff and a supervisor check-list.

10Completion and Getting Your Security Back

• Submit a final report and final statement; final payment follows the PE's approval.
• The PE issues a Completion Certificate (Format e-PPS6-B), useful as evidence of experience for future tenders.
• Any performance security is returned 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.
• You receive the post-contract evaluation report and may respond in writing.

11Response Checklist

• Eligible; no conflict of interest; not debarred or restricted.
• Questions sent before the clarification cut-off.
• Every item priced, rates inclusive of all taxes and VAT; contingency line left to the PE.
• Validity stated and long enough.
• Capability documents attached as the invitation asks.
• Performance security and advance guarantee costs priced; bank ready.
• Rate breakdown ready for negotiation.
• Working capital for the first payment interval.
• Submitted before the deadline; acknowledgement saved.

12Common Questions