Chapter- 1 Preliminary

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Short title and commencement: (1) This Act may be cited as the “Public Procurement Act, 2063 (2007).”
(2) It shall commence forthwith.

Definitions: Unless the subject or the context otherwise requires, in this Act,-
(a) “Procurement” means the acquisition by any public entity of any goods, consultancy services or other services, or executing or causing to be executed any construction works by such an entity, in accordance with this Act;
(b) “Public entity” means the following body:
(1) A constitutional organ or body, court, Ministry, secretariat, commission, department of the Government of Nepal or Provincial Government1 or any other governmental entity or office thereunder,
(2) A corporation, company, bank or board which is owned or controlled wholly or in majority by the Government of Nepal or Provincial Government2 or commission, corporation, authority, undertaking, enterprise, board, center, council and other corporate body of similar nature which is established at the public level or formed by the Government of Nepal or Provincial Government3 , in accordance with the prevailing law,
(3) A university, college, research center and other academic or educational institute of similar nature which is operated by the Government of Nepal or Provincial Government4 or receives grants wholly or in majority from the Government of Nepal,
(4)5 Local Level,
(5) A development board which is formed under the Development Board Act, 2013 (1956),
(6) A body which is operated through a loan or grant by the Government of Nepal or Provincial Government6 , and (7) Such other body as specified to be a public entity by the Government of Nepal or Provincial Government, 7 by a notification in the Nepal Gazette.
(c) “Goods” means goods of any kind, whether movable or immovable, living or non-living8 , and this term also includes services incidental to the supply of such goods.
(d) “construction works” means any construction works such as preparation of a construction site, excavation, erection, building, installation or decoration of equipment or goods which is associated with the construction, reconstruction, demolition, maintenance or renovation of any structure or works, and this term also includes services incidental to works such as mapping, laboratory testing, satellite photography and seismic investigations.
(e) “Consultancy services” means any study, research, survey, design, drawing, supervision, training, testing, software development service or other intellectual or professional service of similar nature.
(f) “Other services” means the act of hiring motor vehicles, equipment or goods, carriage or maintenance of goods.
(g) “Bid” means a document specifying the price, proposal or price rate which is submitted by a bidder in such form as specified by a public entity in pursuance of a notice published by such an entity for procurement. (h) “Bidder” means a person, firm, body or company that submits or may submit a bid to participate in the procurement proceeding.
(i) “Bidding documents” means a document which is prepared by the concerned public entity making invitation to bid for submission by bidders by filling up or preparing price or proposal or rate in such a document, and this term also includes instructions to bidders, specifications, drawing, design, terms of reference, schedule of work, evaluation criteria, bill of quantities, conditions of contract and similar other documents.
(j) “Procurement contract” means a procurement agreement entered into between a public entity and a supplier, construction entrepreneur, consultant or service provider pursuant to Section 52.
(k) “Public Procurement Monitoring Office” means the Public Procurement Monitoring Office established pursuant to Section 64.
(l) “Competent authority” means the authority empowered under this Act or the rules framed hereunder to approve procurement related act.
(m) “Guarantee” means the retention money or earnest money furnished as a security pending the completion of any work, and this term also includes the bid security or performance security or such amount furnished for security as required to be so furnished for any other reason.
(n) “Special circumstance” means a circumstance resulted from a natural or divine calamity such as drought, no rainfall, deluge, earthquake, flood, landslide and fire and from an epidemic9 or unforeseen or unexpected special circumstance, and this term also includes a circumstance such as war or internal conflict.
(o) 10 “Local Level” means Rural Municipality, Municipality or District Assembly constituted under the prevailing law.
(p) “Joint venture” means the act of doing any work jointly by two or more companies or firms with joint or several liabilities.
(q) “Agent” means a person, firm or company that takes agency of any native or foreign person, firm or company.
(r) “One level higher authority” means, with respect to a governmental body, in the case of the chief of office, the chief of a regional office where there is such a regional office and the head of the concerned department where there is no regional office, in the case of regional chief, the head of the concerned department, in the case of the head of department, the secretary of the concerned Ministry, secretariat or commission, in the case of a secretary, the concerned departmental Minister or Minister of State, and in the case of a secretary or administrative chief of a constitutional organ or body, the chief of the concerned constitutional organ or body, and in the case of any other public entity, the chief of the body that is one level higher than the procuring entity and the board of directors or similar other body of such a public entity where there is no such body.
(s) “Donor party” means any foreign country or international or foreign body which provides foreign assistance in the form of loan or grant to the Government of Nepal under a bilateral or multilateral agreement.
(t) “Ration” means the goods in-kind specified by the Government of Nepal in respect of foods for the Nepal Army, Nepal Police, Armed Police Force or for such government employees, patients at hospitals, detainees in prisons, animals and birds etc. as specified by the Government of Nepal.
(u) “Prescribed” or “as prescribed” means prescribed or as prescribed in the rules framed under this Act.

Procurement to be made in accordance with this Act: (1) A public body shall, in making a procurement, make such procurement by complying with the procedures set forth in this Act.
(1a)11 A body which is registered in accordance with the prevailing law shall, in making procurement through government funds, make such procurement, to that extent, by complying with the procedures set forth in this Act.
(2) Any procurement made in a manner to be contrary to subsections (1) and (1a)12 shall be void and invalid.

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