Specifications means precise requirements of goods, works and services sought through a solicitation process. A specification sets limits and thereby eliminates, or potentially eliminates, items that are outside the boundaries drawn.
The specifications of public procurement are very important therefore remained a frequent cause of discussion. Entire procurement process depends on how well specification has been drafted. The overall purpose of a specification is to provide a basis for obtaining goods, works or service that will satisfy a particular need at an economical cost and to invite maximum reasonable competition.
From the plain reading of rules of specification in public procurement rules of Pakistan (federal and provinces), it appears that the texts are similar. However Sindh Public Procurement Rules, 2010 and Balochistan Public Procurement Rules, 2014 have restricted the use of used or reconditioned equipment, plant or machinery. Sindh Public Procurement Rules, 2010 does not provide any exception regarding procurement made by public sector commercial concerns on the demand of private sector client. Under the procurement laws of the World Bank and Asian Development Bank, a reference to international standards is compulsory. However, when standards are silent, local standards may be referred.
The rule No.10 of Public Procurement Rules-2004 deals with the specification. It explains the requirements and the approaches for drafting the specifications of the object to be procured. For the sake of clarity, the rule may be divided into following three parts:
a. Widest Possible Competition
b. Reference to brand name/catalogue
c. Exception
a. Widest Possible Competition
The specifications cannot be made in a manner which can come out to be restrictive and support single bidder. The specification must be written to encourage competition consistent with seeking overall economy for the purpose intended. Further, it should include only standards that are supported by the market and that are recognized by a formal standardization organization(s).
b. Reference to brand name/catalogue
– It has been specifically stressed that procuring agency must avoid referring to proprietary products such as brand names, trademarks and patents as the use of references to proprietary items restricts the ability to participate in bids because only certain vendors or suppliers will be in a position to provide the specific product. It also makes the public authority too dependent on a single vendor for systems, potentially reducing competition for the provision of these systems and its likelihood to be further used. Therefore public procurements should not make reference to proprietary products, brand names, trademarks, patents, and similar items.
– Under the exceptional circumstances, If it is necessary to mention the brand names, catalogue etc, it must be made with the words “or equivalent”. It means that the bidder may quote for an object which is equivalent to the brand name or catalogue number mentioned in the specification. However, the burden of proof lies on the bidder to prove equivalency and all cost to be incurred in this regard would be borne by the bidder.
– Some procuring agencies/consultants have added the word “approved” and use “or approved equivalent” instead of “or equivalent”.
– It is important to note that the request for new solutions to be compatible with previously purchased proprietary products or systems can favor the original suppliers and thus restrict competition, increasing the risk of vendor lock-in. The consequences of such a scenario are that only a limited number of suppliers or providers might be favored for the provision of a given product or service. In order to minimize the risk of long-term dependence on a single supplier or service provider, specifications must be drafted not to request compatibility with previously purchased proprietary solutions. Rather it is recommended to request for their interoperability. This approach increases the freedom of future procurement choices because it enables full compatibility across multiple vendors and producers.
c. Exception
An exception has been provided that if a procuring agency deals in manufacturing and selling of equipment, plants, and machinery, it can procure a particular brand, model or classification of equipment, machinery or other objects on the request of private sector client. This exception is not provided under Sindh Public Procurement Rules, 2010.
While drafting the specifications, procuring agency must keep in mind that procurement does not aim for the best in the market. The best quality may have adverse implications on cost, technical aspects, maintenance, and operations. Therefore, procurement tries to get the just right quality that suits the need-no more and no less. (The writer is a Procurement & Contracts Specialist. Email:mshehzadmemon@hotmail.com)
