Public procurement (सार्वजनिक खरिद) is the purchase of goods, works and services by public bodies using public money. It is governed by the Public Procurement Act, 2063 (authenticated 2063 Poush 30) and the Public Procurement Regulations, 2064. Store management after purchase (जिन्सी) is in Jinsi Management.
1. Objectives (from the Act’s preamble)
- Make procurement open, transparent, objective and reliable.
- Promote competition, fairness, honesty and accountability.
- Get value for money (best quality at a reasonable price).
- Give equal opportunity to all qualified bidders without discrimination.
2. Importance
- A large share of the government budget is spent through procurement.
- Good procurement prevents corruption and waste.
- It ensures quality goods, works and services for development.
- It builds public trust in government spending.
3. Procurement methods
| For goods, works and other services | For consulting services |
|---|---|
| Open competitive bidding (national or international) | Competitive proposals (short-list, then proposals) |
| Sealed quotation (सिलबन्दी दरभाउपत्र) | Direct negotiation (in specific cases) |
| Direct purchase (सोझै खरिद) for small amounts | |
| Through user committee or beneficiary community (उपभोक्ता समिति) | |
| Force account (अमानत) | |
| Added later: limited bidding, catalogue shopping, lump-sum piece rate, buy-back |
The money limits for each method are fixed in the Regulations and are changed from time to time; always check the latest limits published by the PPMO.
4. General procurement process
- Prepare a procurement plan and cost estimate.
- Choose the method and prepare bidding documents (standard bidding documents from PPMO).
- Publish the notice (now mainly on the e-GP portal, bolpatra).
- Receive and open bids in public.
- Evaluate bids and decide the lowest evaluated responsive bid.
- Issue letter of intent; after the complaint period, sign the contract.
- Supervise delivery, inspect, accept, make payment and record assets.
5. PPMO and e-GP
- The Public Procurement Monitoring Office (PPMO) works under the Office of the Prime Minister and Council of Ministers.
- It monitors procurement, issues guidelines and standard bidding documents, keeps a blacklist of firms and runs the e-GP system (bolpatra.gov.np).
6. PAMS: Public Assets Management System
- An FCGO software through which federal, provincial and local offices record and report their assets: land, buildings, vehicles, equipment, stores (consumables) and intangible assets such as software.
- It helps keep an accurate inventory, prevents loss and misuse of government property and supports audit.
7. Choosing the right method: a simple guide
The method depends mainly on the type of procurement and its estimated cost. The exact money limits are set in the Public Procurement Regulations and are revised from time to time, so always check the latest limits published by PPMO.
| Situation | Usual method |
|---|---|
| Small purchase within the direct-purchase limit | Direct purchase (सोझै खरिद) |
| Medium-value goods or works | Sealed quotation (सिलबन्दी दरभाउपत्र) |
| Large-value goods, works or services | Open competitive bidding (national or international) |
| Studies, designs, supervision | Competitive proposals for consulting services |
| Small community works | User committee (उपभोक्ता समिति) |
| Work the office can do itself | Force account (अमानत) |
| Standard listed items | Catalogue shopping (where available) |
Important rule: a large purchase must not be split into small parts just to use an easier method. Splitting to avoid bidding breaks the spirit of the Act and is a common audit objection.
8. Common problems in public procurement in Nepal
- Very low bids: contractors bid far below the estimate to win, then cannot finish the work on time or to standard.
- Delays: late procurement planning means contracts are signed late in the fiscal year, adding to the Asar spending rush.
- Collusion: bidders agree among themselves on prices, which defeats competition.
- Weak contract management: poor supervision, frequent time extensions and variations.
- Poor asset records: goods and works are not entered in PAMS or the store records after completion.
Ways to improve: prepare procurement plans early, use e-GP for all eligible procurement, check bidders’ capacity properly, enforce penalties and blacklisting, and record every asset in PAMS on completion.
9. How this topic is asked in the exam
- Objective: years of the Act (2063) and Regulations (2064), PPMO, the e-GP portal, the full form of PAMS, and the Nepali names of methods.
- Short answer: “Write the objectives of the Public Procurement Act” or “What is PAMS? Write its importance.”
- Long answer: “Explain the procurement process and its problems in Nepal.” Give the steps from planning to asset recording, the methods in section 7, then the problems and solutions in section 8.
📌 Key points to remember
- Public Procurement Act 2063, Regulations 2064.
- Objectives: transparency, competition, fairness, accountability, value for money.
- Methods: open bidding, sealed quotation, direct purchase, user committee, force account (plus limited bidding, catalogue shopping); consulting: competitive proposals, direct negotiation.
- PPMO is under the OPMCM and runs e-GP (bolpatra).
- PAMS = Public Assets Management System of FCGO for recording government assets.
Test yourself: Public Procurement Management (सार्वजनिक खरिद) and PAMS
Practise Objectives (from the Act’s preamble), General procurement process and PAMS: Public Assets Management System with 50 questions. Each attempt picks 25 at random.