The Oil and Gas Development Company (OGDC) has flouted Public Procurement Regulatory Authority (PPRA) rules by accepting a bid for Jhal Magsi equipment procurement contract (EPC) after the deadline. Sources said OGDC accepted Preson Desscon International's (PDI) bid for the procurement contact for Jhal Magsi field submitted by its representative after the deadline.
OGDC's management conceded to other competitors on expiry of bid submission time that Preson Desscon International's bid has come late but they wanted to consider it. The OGDC's decision not to reject Preson Desscon International (PDI) bid on the ground that it was submitted after the deadline infuriated the other bidders.
Immediate reaction came from Petrosin, one of the contestants, as its representative protested against OGDC's decision of accepting PDI's bid after the deadline. Petrosin's representative recorded his protest in writing for two reasons; to put his protest on record and to use it for some remedy from other channels if OGDC did not give due importance to his protest.
PPRA rules clearly state that any bid for a contract coming after the deadline would be rejected forthwith without opening of sealed envelops. Another PPRA rule reads as "Public sector companies are required to strictly follow the rules including the deadline for submission of bids for a contract". It further says the bids submitted for any job should be without any ambiguity and they should be opened up in the presence of the bidders' representatives with an objective to make the bidding process transparent.
OGDC being a public sector company is required to follow PPRA rules in letter and spirit so that its contracts do not meet any setback for any reason. Five companies Speciality Process Equipment Corporation, Weatherford, Petrosin, ICC Publication, FWO and Schlubberger submitted their bids well in time.
Preson Desscon International's late submission of bid and OGDC's decision of accepting it in violation of PPRA rules will undermine the government efforts meant to ensure transparency in award of contracts for different procurements. The companies in the run to get contract for Jhal Magsi are well reputed and OGDC needs to make the bidding process transparent in line with PPRA rules, said Petrosin's representative in his written protest.
Other parties in the run would follow Petrosin if OGDC did not stop its policy of favouring some interested parties. OGDC is already facing litigation in a number of key contracts for favouring one party over others. Acceptance of bid in the case of Jhal Magi procurement contract could add to its list of litigation cases.