Attock

Attock Petroleum Limited

Department: Sales and Marketing

Section:

Document No: PP&P-Version 01

Rev #:

Original Issue: September 05,2012

Rev Date:

PROCUREMENT POLICY
AND
PROCEDURES
.
.

The objective of this document is to set out guiding principles and directions so that procurement and its
associated activities shall be carried out in a professional and transparent manner upholding all legal
standards.
1.1. Policy

Broad concept planning for each capital work will be carried out at the pre-budget proposal stage by
the User Department.
Request for Procurement of Capital Items, having allocation in that year's budget, will be forwarded
by the Head of User Department to the Procurement Department.
Request for Procurement of Capital Items which has not been allocated in that year's budget will be
approved by CEO before sending to Procurement Department.

2.1. PROCUREMENT
All purchasing to be undertaken through competitive bidding subject to the exceptions listed
herein. In such cases all supporting evidence of non competitive conditions will be documented.
Exceptions

Any item, project, transaction or job valuing less than Rs. 100,000/-.
Branded products to be procured from the Manufacturer or their Trading Houses/Authorized Sales
Agent Normally spare parts and accessories to be purchased from Original Equipment Manufacturer (OEM)
or their certified authorized agents.
- Revenue expenses with a value less than Rs. 100,000/- per item, transaction or service where
purchasing to be undertaken by User Department.
There is only one supplier of the specified material in the market
When firm and valid price quotation is available from the only supplier of material
When specifically approved by CEO to meet an emergent situation.
2.2. Short listing of Vendors
2.2.1. Policy

Pre-qualification process will be initiated by procurement department in coordination with the

user department for short listing of vendors and only shortlisted vendors will be called for
submission of quotation.

Application for new vendor(s) shall be invited yearly or as & when required through formal
channel on a prescribed format.

The basic criterion for assessing products or services offered will be performance capability,
brand, delivery time, quality and cost etc. In case of assets having technical nature the user
department's opinion will be formally documented.
Page 1 of 5

Attock

Attock Petroleum Limited

I Department: Sales and Marketing
Document No: PP&P-Version 01

Original Issue: September 05,2012

Section:
Rev #:

Rev Date:

PROCUREMENT POLICY AND PROCEDURES

Only reputed vendor(s) registered with Income Tax/Sales Tax authorities shall be considered for
approved list of vendors.
The following categories will be considered in short listing of vendors (forms and grading
annexed):
o A (Civil & Mechanical Works)
o B (Construction of Retail Outlets) o C (Supply of Material)
o D (Fabrication & Installation)
o E (Services)

2.2.2. Procedure

Vendor selection forms will be sent to and filled out for each category by the potential vendor.
Any addition or deletion in the list of approved vendors would require consent / approval from Head
of Finance, User and Procurement departments.
In case a specific vendor is being requested, the Head of User Department will raise an internal
memo to Head of Procurement Department for consent.

2.3. Bid Committee

Bid committee approving authorities based on the approval limits are as follows:
o CEO - Bid approval/awarding authority over Rs. 1 Million
o Head of Finance and Marketing (Jointly) - Bid approval/awarding authority up to Rs. 1
Million. Copy of the approval shall be sent to CEO for information.,

2.3.1. Policy

All quotations involving competitive bidding will be deposited in the quotation box. This quotation
box will be opened in the presence of bid committee members on the bid opening date.
The bid committee members will be nominated with the approval of management.
Bid Committee has the right to accept or reject a bid at the time of opening by providing a plausible
reason to the Approving authority of the respective bid committee.

Important terms and conditions shall be mentioned on the bid invitation form.
2.4. Assessing Quotations

Request for Quotation (RFQ) will be issued by procurement department where the company
requires competitive bidding on defined criteria.

2.4.1. Policy

Quotations containing special non negotiable clauses which are not acceptable to the company will
be rejected.
The offer should be valid for a reasonable period, unless otherwise stated.
Page 2 of 5

Attock

Attock Petroleum Limited

Department: Sales and Marketing

Section:

Document No PP&P-Version 01 1 Original Issue: September 05,2012

Rev #:

Rev Date:

PROCUREMENT
POLICY AND PROCEDURES
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Bids received after the opening of bids would be rejected unless accepted by at least 3 members of
the bid committee.
In cases where less than 3 bids are received same can be accepted by the bid committee.

In assessing quotations, the following checklist will be used:

o technical experience in the relevant trade
o delivery program
o warranties and guaranties offered
o any other general item

The lowest bidder or the best offer determined shall be awarded the job/contract.

2.4.2. Procedure
Head of User Department will enter itemized demand for approval staying within the approved
budget.
Quotations will be opened in front of Bid Committee or their nominated representatives.
E-mail will be generated by procurement department to the bid committee members advising the
time and date of bid opening. Bid committee shall meet preferably on fortnightly basis or as per the
need.
In case of international vendors or if bids are to be received in electronic form procurement email
for bid receipts will be used.
Each page of the bid documents shall be initialed by procurement department before sending to the
vendors.
Each page of the bid document received from the prospective vendors where vendor has quoted
figures or technical input will be signed by the bid committee post bid opening.
Comparative statement of the bids received will be prepared and counter signed by each member of
the bid committee.
User department shall review the quotations technically and give his consent/comments.
Any objections will be formally recorded.
In case of Technical nature of the item or disagreement between the various members of the Bid
Committee, the opinion of the User Department will prevail.
If the market conditions demand or there is significant difference with previous purchase price or
budgeted price, the bid committee may advise the procurement department to negotiate the prices
with 1 or 2 lowest bidders either through open negotiation or sealed quotations.
After clearance from the bid committee, the note will be forwarded to the respective approving
authority for approval.
After the award of job is approved, the Purchase Order to the selected vendor will be prepared by
procurement department and signed by Head of Finance...
Splitting purchases into a number of smaller purchases with a view to bring down the amount to suit
financial criteria of authorization/limit is a violation of company's discipline and must therefore be
refrained. The written approval of CEO shall be required for any deviation from this condition, if
splitting is unavoidable.

AA

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1
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Attack

Attock Petroleum Limited

Department: Sales and Marketing

Section:

Document No: PP&P-Version 01

Rev #:

Original Issue: September 05,2012

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Rev Date:

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2.5. Disposal of Fixed Assets

2.5.1. Policy
All disposal and write off proposals will be approved by Board of Directors
User function will take approvals through company secretary for disposal of assets and forward
the request for disposal to procurement department
Material shall normally be disposed of by Public Auction
Auction will be held as per accumulation of the actionable items
Vehicles will be auctioned within 30 days of their approval. Sale by tender will only be initiated
for those items which cannot attract minimum acceptable price in an auction

2.5.2. Procedure

2.6.

Disposals and write offs will include all unserviceable items identified during physical checks or
items advised by the User Function Department Finance Department will take approval for disposal from Board of Directors on quarterly basis
Finance Department will forward approval to Head of Procurement Department to initiate the
disposal process
Advertisement will be posted in newspapers, with a deadline to submit bids of at least 10 days
Disposal of all assets will be conducted through the bid committee with at least one member
from finance and one member from User Department
Approval of CEO shall be required on final note for disposal
Performance Assessment of Vendor(s)

2.6.1. Policy

To ensure that the purchases are made from vendors who possess the capability to provide
materials according to the required specifications and value at reasonable prices and as per
delivery schedule.

2.6.2. Procedure

Assessment of vendor(s) shall be carried out periodically, at least once in every year, but if
needed, more frequently.
Record of quotations, deliveries, and rejections shall be used to assess price, delivery, and value
performance.
Vendor Performance Assessment Report shall be reviewed and approval for the continued
registration of Vendor(s) shall be made for only those showing satisfactory performance.
Vendor Performance Assessment Report shall be based on recommendation of user
department.
The areas which require improvements shall be discussed with Vendor(s) and they shall be
intimated about the steps necessary to effect improvement.

Page 4 of 5

i
ff
Attock

Attock Petroleum Limited

Department: Sales and Marketing

Section:

Document No: PP&P-Version 01

Rev #:

Original Issue: September 05,2012

Rev Date:

PROCUREMENT POLICY AND PROCEDURES

If Vendor is excluded from future business with APL, the reasons and recommendations for
exclusions shall be prepared and approved.

Recom ended by:

AGM(S M)

Recommended by:
GM (F&A)

IK
SHUAIB A.
CHIEF EXECUTIVE
Dated September 7, 2012

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