Procurement Grievance Mechanism

The Procurement Rules and Regulations (PRR),2009,provides that any supplier, contractor or service provider who has or is likely to suffer, loss or injury resulting from an alleged breach of the Procurement Rules is entitled to seek review of the procuring agency’s decisions by submitting a written complaint.

The amendment No.11 dated 7th July, 2015 issued by Ministry of Finance makes provisions in the standard bidding documents to allow bidders to seek review of the procuring agency’s decision when it considers the procuring agency’s decision in the award process are inconsistent with relevant procurement rules.

As per clause 8.1.3 a supplier, contractor or service provider may, in the event of a perceived breach of a duty imposed upon a Procuring Agency in respect of a specific procurement procedure, submit a written complaint to the head of the procuring agency responsible for such procedure promptly and in any event within 10 days of the letter of intent to award the contract.

In accordance with clause 8.1.4 of PRR the head of agency shall, within 7 days after the submission of the complaint, issue written decision which shall:

a.    State the reasons for the decision; and

b.    If the complaint is upheld in whole or in part, indicate the corrective measures are to be taken.

Where such a decision has not been delivered within the time specified, or complainant is not satisfied with the decision, the complainant may appeal to Independent Review Body [1] within 5 days of the decision of procuring agency or, where no such decision has been taken, within 15 days of the original complaint.

The complainant shall submit the application to the Independent Review Body through the Secretariat in accordance with the procedures outlined in Rules and Procedures of IRB February, 2015.

The Independent Review Body (IRB) is composed of seven members as notified vide.letter no. MoF/PPPD-02/2014-2015/144 dated 16th June,2015 which shall function in accordance with the Rules and Procedures of IRB February, 2015 issued by Ministry of Finance.

The Public Procurement Policy Division shall serve as the Secretariat to the IRB.

The scope of review shall be limited to the procuring agency’s decision leading up to award process and/or where the contract has not been concluded.

The existence of procurement grievance mechanism will ensure compliance with rules and suppliers’ confidence in the procurement system.


[1]Independent Review Body” refers to the panel appointed by the Ministry of Finance, comprising of seven members, for the purposes of providing independent review of Applications for Review submitted by bidders who alleged to suffer damages due to a violation of the PRR/standard bidding documents/standard request for proposal and its related document issued by Ministry of Finance.

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