CHAPTER- 1 Preliminary

CHAPTER- 1 Preliminary
1. Short Title and Commencement:

(1) This Act may be called “Public Procurement Act, 2007.”
(2) It shall come into force immediately.
2. Definitions: Unless the subject or context otherwise requires, in this Act,-
(a) “Procurement” means acquisition of any goods, consultancy services or other services or carrying out or causing to be carried out any construction works, by a public entity pursuant to this Act;
(b) “Public Entity” means the following entity:-
(1) Constitutional organ or body, Court, Ministry, Secretariat, Commission, Department of the Government of Nepal or any other Governmental Entity or Office thereunder,
(2) Corporation, Company, Bank or Board owned or controlled fully or in majority by the Government of Nepal or Commission, Institute, Authority, Corporation, Academy, Board, Center, Council
established at the public level or formed by the Government of   Nepal under the laws in force and other corporate body of a similar nature,
(3) University, College, Research Center, which is operated by the Government of Nepal or receives grants fully or in majority from the Government of Nepal, and other Academic or Educational Institution of a similar nature,
(4) Local body,
(5) Development Board formed under the Development Board Act, 1956,
(6) Body operated with loan or grant of the Government of Nepal, and
(7) Other Bodies as specified by the Government of Nepal by
publishing a notification in the Nepal Gazette, as a Public Entity;
(c) “Goods” means any kind of object, whether movable or immovable, and
this term includes services incidental to the supply of such goods;
(d) “Construction Work” means work such as site preparation, excavation,
erection, building, installation of equipment or goods and decoration etc,
associated with the construction, reconstruction, demolition, repair or
renovation of any structure or works, and this term also includes services
incidental to construction work such as mapping, laboratory testing,
satellite photography and seismic investigation;
(e) “Consultancy Service” means any study, research, survey, design,
drawing, supervision, training, testing, software development service or
other intellectual or professional service of a similar nature;
(f) “Other Services” means the act of hiring motor vehicles, equipment or
goods, carriage or repair and maintenance of goods;
(g) “Bid” means a document setting out price, proposal or rate submitted by
a bidder in the format specified by a Public Entity as per the notice
published by that entity for procurement;
(h) “Bidder” means any person, firm, organization or company that submits
or may submit bid to take part in procurement proceedings;
(i) “Bidding Document” means a document 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 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 contract entered into
between a Public Entity and a supplier or construction entrepreneur or
consultant or service provider pursuant to Section 52;
(k) “Public Procurement Monitoring Office” means the Public Procurement
Monitoring Office established under Section 64;
(l) “Competent Authority” means an authority authorized under this Act or
the rules made thereunder to approve proceedings regarding
procurement;
(m) “Security” means retention money or earnest money furnished as
security pending the completion of any obligation/work, and this term
also includes bid security or performance security or an amount
furnished for security required to be so furnished for any other reason;
(n) “Special Circumstance” means a circumstance resulted from natural or
divine calamity and sudden or unexpected special circumstance such as
drought, no rainfall, deluge, earthquake, flood, landslide and firing, and
this term also includes a circumstance such as war or internal conflict;
(o) “Local Body” means Village Development Committee, Municipality or
District Development Committee constituted under the Local Self-
governance Act, 1998;
(p) “Joint Venture” means the act of carrying out any work jointly by two or
more companies or firms with joint or several liabilities;
(q) “Agent” means any person, firm or company who takes agency of any
national or foreign person, firm or company;
(r) “One Level Higher Authority” means in relation to governmental
entities, in the case of the head of office, the head of a regional office
where there is such regional office and the departmental head of the
concerned department where there is no regional office, in the case of
regional head, the departmental head of the concerned department, in the
case of departmental head, the secretary to 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 head of a constitutional organ or body, the head of the
concerned constitutional organ or body and in the case of other public
entities, the head of an entity that is one level higher than the procuring
entity and the board of directors or similar other body of such Public
Entity where there is no such entity;
(s) “Donor Party” means any foreign country or international or foreign
organization, 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 food for the Nepal Army, Nepal Police, Armed Police Force
and governmental employees specified by the Government of Nepal;
patients at hospitals, detainees in prisons, animals and birds etc;
(u) “Prescribed” or “as prescribed” means prescribed or as prescribed in the
rules framed under this Act.
3. Procurement to be made as per this Act: (1) In making procurement, a Public
Entity shall have to make such procurement by complying with the procedures
set out in this Act.
(2) Any procurement made in such a manner as to be contrary to Sub-
section (1) shall be void and invalid.