Essentials of

KTPP Act & Rules

K. Srinivasa
Consultant (Financial Management)
ATI, Mysore
 Title and Commencement
The Karnataka Transparency in Public
Procurement Act, 1999

W.E.F 4-10-2000

The Karnataka Transparency in Public

Procurement Rules 2000

W.E.F 24-10-2000
 Objective of the Act

To Provide for ensuring transparency in

Public Procurement, by streamlining the
Procedure in
Inviting

Opening

Acceptance or Rejection Of tenders by

Procurement Entities
 Procurement Entities

Government Departments, a State

Government undertaking, Local Authority or
Board, Body or corporation established by or
under any Law and owned or controlled by
the Government, any other body or Authority
owned or controlled by the Government.
 Public Procurement

Means :
Obtaining Goods and Services

Execution of Works

Consultancy Services
 Provisions not to apply
sec. 3

Project funded by international financial

agencies

Projects covered under international

agreements
 Exceptions to applicability
Sec-4

During calamity / Emergency Sec-4 (a)

Single Source Sec-4 (b)

Additional Supplies from same supplier for

reasons of standardization and compatibility
Sec-4 (c)
 Procurement from certain Departments of
Government, PSU and other institutions and
such goods or services provided by them for
a period specified by Government from the
commencement of this Act. Sec-4 (d)
 Where the value of works does not exceed 5
lakhs.

Goods and services does not exceed 1 lakh.

For G.P. mini water scheme and construction

of school building does not exceed 2 lakhs.
Sec-4 (e)
 DGS &D Sec-4 (f)

In respect of specific procurement as may be

notified by the Government from time to
time. Sec-4 (g)

Spot purchase Sec-4 (h)

 Regulation of Procurement

Procurement other than by tender is

prohibited. Sec.5

Procurement entities to follow procedure as

laid down in Act & Rules Sec.6
 Tender Bulletin

Dist Tender Bulletin officer

Deputy Commissioner

State Tender Bulletin officer

Deputy secretary to the concerned
Department
 Publication

Notice inviting Tenders or decisions on

Tenders shall be published within the
prescribed time. Sec.8
 NIT will be Published in the District, where
the H.Q of TIA is Located.

If the value of Procurement is Rs. 1.00 crore

and above it shall also publish in the STB.
Rule 8
NIT will not be invalidated merely on the
grounds that it has not published in news
papers Rule 6
 If TIA is a Sec to Government /Head of the
Department, Chief Executive of a PSU,
university, board, apex co-operative
institution then it shall be published in STB as
well as DTB irrespective of monetary limit.
Rule 7
Tender Inviting Authority and Tender
Accepting Authority
The P.E may by order appoint :
One or more officers or committee of officers as
TIA for any Specified area / specified
procurement or specified class of goods and
services.

One or more officers or a committee of officers

to be the TAA for any Specified area / specified
procurement or specified class of goods and
services. Sec. 9
 Tender Scrutiny Committee

TAA shall constitute TSC where the value of

Tender exceeds 5 crores in respect of PW &
irrigation Department and Minor irrigation
Department and 1 crore in respect of all
other Departments. Rule. 20
 Duties of TIA

To take out NIT in the prescribed manner

To communicate the NIT to TBO.

To cause publication of NIT in the prescribed

manner.
 To supply the schedule of rates and Tender
Document to every intending tenderers.

The TIA shall collect all details received in

response to the NIT and open the tenders or
forward to the authority authorised to open
the tenders Sec. 12
 Notice Inviting Tender
Rule 9

Name and Address of P.E and Designation

and Address of TIA.

Name of the Project

Specify the place and last date for issuing

Tender document.
 EMD

Last date, time, place of Receipt of Tenders

(Ensure the min. prescribed period)

The date, time and place for opening of

Tenders.
 Min Time for Submission of Tenders
Rule 17

For tenders upto Rs. 2 crores, 30 days and (b)

For tender above 2 crores 60 days the TIA
shall ensure that a min time is allowed
between date of publication of NIT in the
Tender Bulletin and the last date for
submission of tenders. Rule 17 (1)
 Any reduction in time stipulated under sub
rule (1) has to be specifically authorized by
an authority superior to the TIA for reasons
to be recorded in writing. Rule 17 (2)
 Technical Specification
Section-11

Detailed Description of what is proposed to

be procured.

Use of Brand names shall be avoided, ISI

number shall be incorporated.
Construction:
Detailed estimates as per schedule of rates as
revised from time to time.
 Commercial Condition
EMD: DD, Small Savings Instrument
Bankers Cheque
Valid for 45 days after Minimum Validity period
Minimum Validity period for prices quoted is 90
days.
PSD 5%
Liquidated damages for non fulfillment of terms
of contract.
Quantity proposed to purchase may vary 25%
either way at the time of contract.
 Opening of Tender
Rule 18,19
The tender will be opened in the place and time
as indicated in NIT.
All the tenders received in time shall be counted
and opened.
Corrections shall be noticed and recorded.
Read out the name and quoted prices.
EMD
Minutes of the tender opening shall be recorded
and signature obtained.
 Evaluation
Rule 24

TIA shall cause an initial examination to

determine the substantial responsiveness of
tenderes. Rule 24 (1)
The following factors shall be considerded:
Rule 24(2)
Meets eligibility criteria. Rule 24 (a)
Crucial documents have duly signed Rule 24 (b)
 EMD furnished Rule 24 (c)

Technical specification, including Testing of

samples. Rule 24 (d)

Tender may be rejected if any of the clauses

above are not fulfilled.
 Determination of Lowest evaluated price
Rule 25

Arithmetical errors.
In case of discrepancy between prices quoted in
words and figures, Lower of the two shall be
considered.
TIA will prepare detailed evaluation report. TAA after
Acceptance send the report for publication in Tender
Bulletin and communicate to successful bidder and
asked to sign contract of Agreement within 21 days
from the date of receipt of communication.
 Negotiation
Sec. 13

Negotiation with L-1 only

(Lowest evaluated responsive bid)
Compare with market rate.
(For same brand and specification)
Negotiation committee.
Rejection of Tender
 General Rejection of Tenders
Sec. 14

The TAA may at any time before passing an

order of acceptance may reject all the tenders
on the ground of :
Changes in the scope of procurement
Budget not received
Calamities
Accidents
Or any other grounds which would render the procurement
impossible or unnecessary and report the same to PE
 Two Cover System
Rule 28

Tenders exceeding Rs. 50 lakhs in value,

where prequalification are not followed, two
cover system shall be adopted.

First cover- Technical bid.

Second cover- Finance bid.

 Power to call for records
sec. 18

The govt. at any time to ensure transparency

call upon any authority under the act:
To produce records of invitations, processing and
acceptance of tenders
To produce tender documents, estimates, and
accounts
Any specific point incidental to the procurement.
 Penalty
sec. 23

Who ever contravenes the provisions of this

act or the rules shall be punishable for
imprisonment for three years and with fine
up to five thousand rupees