Indian Railway Codes and Manuals-General Financial Rules-2017-Chapter- 6 (VI) GFR-2017.
Chapter – 6
PROCUREMENT OF GOODS AND SERVICES:
Rule 142
This chapter contains the general
rules applicable to all Ministries or Departments, regarding procurement of
goods required for use in the public service. Detailed instructions relating to
procurement of goods may be issued by the procuring departments broadly in
conformity with the general rules contained in this Chapter.
Rule 143
Definition of Goods. The term
‘goods’ used in this chapter includes all articles, material, commodity,
livestock, furniture, fixtures, raw material, spares, instruments, machinery,
equipment, industrial plant, vehicles, aircraft, ships, medicines, railway
rolling stock, assemblies, subassemblies, accessories, a group of machineries
comprising of an integrated production process or such other category of goods
or intangible products like software, technology transfer, licenses, patents or
other intellectual properties purchased or otherwise acquired for the use of
Government but excludes books, publications, periodicals, etc. for a library.
The term ‘goods’ also includes works and services which are incidental or
consequential to the supply of such goods, such as, transportation, insurance,
installation, commissioning, training and maintenance.
Rule 144
Fundamental principles of public
buying (for all procurements including procurement of works). Every authority
delegated with the financial powers of procuring goods in public interest shall
have the responsibility and accountability to bring efficiency, economy, and
transparency in matters relating to public procurement and for fair and
equitable treatment of suppliers and promotion of competition in public
procurement. The procedure to be followed in making public procurement must
conform to the following yardsticks :- (i) The description of the subject
matter of procurement to the extent practicable should - a) be objective,
functional, generic and measurable and specify technical, qualitative and
performance characteristics. b) not indicate a requirement for a particular
trade mark, trade name or brand. (ii) the specifications in terms of quality,
type etc., as also quantity of goods to be procured, should be clearly spelt
out keeping in view the specific needs of the procuring organisations. The
specifications so worked out should meet the basic needs of the organisation
without including superfluous and non-essential features, which may result in
unwarranted expenditure. (iii) Where applicable, the technical specifications
shall, to the extent practicable, be based on the national technical
regulations or recognized national standards or building codes, wherever such
standards exist, and in their absence, be based on the relevant international
standards. In case of Government of India funded projects abroad, the technical
specifications may be framed based on requirements and standards of the host
beneficiary Government, where such standards exist. Provided that a procuring
entity may, for reasons to be recorded in writing, a d o p t a n y o t h e r t
e c h n i c a l specification. (iv) Care should also be taken to avoid purchasing
quantities in excess of requirement to avoid inventory carrying costs. (v)
offers should be invited following a fair, transparent and reasonable
procedure. (vi) the procuring authority should be satisfied that the selected
offer adequately meets the requirement in all respects. (vii) the procuring
authority should satisfy itself that the price of the selected offer is
reasonable and consistent with the quality required. (viii) at each stage of
procurement the concerned procuring authority must place on record, in precise
terms, the considerations which weighed with it while taking the procurement
decision. (ix) a complete schedule of procurement cycle from date of issuing
the tender to date of issuing the contract should be published when the tender
is issued. (x) All Ministries/Departments shall prepare Annual Procurement Plan
before the commencement of the year and the same should also be placed on their
website.
Rule 145
Authorities competent to purchase
goods. An authority which is competent to incur expenditure may sanction the
purchase of goods required for use in public service in accordance with
provisions in the Delegation of Financial Powers Rules, following the general
procedure contained in the following rules.
Rule 146
Procurement of goods required on
mobilisation Procurement of goods required on mobilisation and/ or during the
continuance of Military operations shall be regulated by special rules and
orders issued by the Government on this behalf from time to time.
Rule 147
Powers for procurement of goods.
The Ministries or Departments have been delegated full powers to make their own
arrangements for procurement of goods. In case, however, a Ministry or
Department does not have the required expertise, it may project its indent to
the Central Purchase Organisation (e.g. DGS&D) with the approval of
competent authority. The indent form to be utilised for this purpose will be as
per the standard form evolved by the Central Purchase Organisation.
Rule 148
Rate Contract. DGS&D shall
conclude rate contracts with the registered suppliers for such goods, which are
not available on GeM, and are identified as common use items and are needed on
recurring basis by various Central Government Ministries or Departments.
DGS&D will furnish and update all the relevant details of the rate
contracts on its website. The Ministries or Departments shall follow those rate
contracts to the maximum extent possible.
Rule 149.
Government e-Market place (GeM).
DGS&D or any other agency authorized by the Government will host an online
Government e-Marketplace (GeM) for common use Goods and Services. DGS&D
will ensure adequate publicity including periodic advertisement of the items to
be procured through GeM for the prospective suppliers. The Procurement of Goods
and Services by Ministries or Departments will be mandatory for Goods or
Services available on GeM. The credentials of suppliers on GeM shall be
certified by DGS&D. The procuring authorities will certify the
reasonability of rates. The GeM portal shall be utilized by the Government
buyers for direct on-line purchases as under :- (i) Up to Rs.50,000/- through
any of the available suppliers on the GeM, meeting the requisite quality,
specification and delivery period. (ii) Above Rs.50,000/- and up to Rs.30,00,000/-
through the GeM Seller having lowest price amongst the available sellers, of at
least three different manufacturers, on GeM, meeting the requisite quality,
specification and delivery period. The tools for online bidding and online
reverse auction available on GeM can be used by the Buyer if decided by the
competent authority. (iii) Above Rs.30,00,000/- through the supplier having
lowest price meeting the requisite quality, specification and delivery period
after mandatorily obtaining bids, using online bidding or reverse auction tool
provided on GeM. (iv) The invitation for the online ebidding/reverse auction
will be available to all the existing Sellers or other Sellers registered on
the portal and who have offered their goods/services under the particular
product/service category, as per terms and conditions of GeM. (v) The above
mentioned monetary ceiling is applicable only for purchases made through GeM.
For purchases, if any, outside GeM, relevant GFR Rules shall apply. (vi) The
Ministries/Departments shall work out their procurement requirements of Goods
and Services on either “OPEX” model or “CAPEX” model as per their requirement/
suitability at the time of preparation of Budget Estimates (BE) and shall
project their Annual Procurement Plan of goods and services on GeM portal
within 30 days of Budget approval. (vii) The Government Buyers may ascertain
the reasonableness of prices before placement of order using the Business
Analytics (BA) tools available on GeM including the Last Purchase Price on GeM,
Department’s own Last Purchase Price etc. (viii)A demand for goods shall not be
divided into small quantities to make piecemeal purchases to avoid procurement
through L-1 Buying / bidding / reverse auction on GeM or the necessity of
obtaining the sanction of higher authorities required with reference to the
estimated value of the total demand.
Rule 150
Registration of Suppliers (i) With
a view to establishing reliable sources for procurement of goods commonly
required for Government u s e , t h e C e n t r a l P u r c h a s e
Organisation (e.g. DGS&D) will prepare and maintain item-wise lists of
eligible and capable suppliers. Such approved suppliers will be known as
“Registered Suppliers”. All Ministries or Departments may utilise these lists
as and when necessary. Such registered suppliers are prima facie eligible for
consideration for procurement of goods through Limited Tender Enquiry. They are
also ordinarily exempted from furnishing bid security along with their bids. A
Head of Department may also register suppliers of goods which are specifically
required by that Department or Office, periodically. Registration of the supplier
should be done following a fair, transparent and reasonable procedure and after
giving due publicity. (ii) C r e d e n t i a l s , m a n u f a c t u r i n g
capability, quality control systems, past performance, after-sales service,
financial background etc. of the supplier(s) should be carefully verified
before registration. (iii) The supplier(s) will be registered for a fixed
period (between 1 to 3 years) depending on the nature of the goods. At the end
of this period, the registered supplier(s) willing to continue with
registration are to apply afresh for renewal of registration. New supplier(s)
may also be considered for registration at any time, provided they fulfil all
the required conditions. (iv) Performance and conduct of every registered
supplier is to be watched by the concerned Ministry or Department. The
registered supplier(s) are liable to be removed from the list of approved
suppliers if they fail to abide by the terms and conditions of the registration
or fail to supply the goods on time or supply substandard goods or make any
false declaration to any Government agency or for any ground which, in the
opinion of the Government, is not in public interest. (v) The list of
registered suppliers for the subject matter of procurement be exhibited on the
Central Public Procurement Portal and websites of the Procuring Entity/
e-Procurement/ portals.
Rule 151
Debarment from bidding. (i) A
bidder shall be debarred if he has been convicted of an offence— (a) under the
Prevention of Corruption Act, 1988; or (b) the Indian Penal Code or any other
law for the time being in force, for causing any loss of life or property or
causing a threat to public health as part of execution of a public procurement
contract. (ii) A bidder debarred under sub-section (i) or any successor of the
bidder shall not be eligible to participate in a procurement process of any
procuring entity for a period not exceeding three years commencing from the
date of d e b a r m e n t . D e p a r t m e n t o f Commerce (DGS&D) will
maintain such list which will also be displayed on the website of DGS&D as
well as Central Public Procurement Portal. (iii) A procuring entity may debar a
bidder or any of its successors, from participating in any procurement process
undertaken by it, for a period not exceeding two years, if it determines that
the bidder has breached the code of integrity. The Ministry/Department will
maintain such list which will also be displayed on their website. (iv) The
bidder shall not be debarred unless such bidder has been given a reasonable
opportunity to represent against such debarment .
Rule 152
Enlistment of Indian Agents. As per
the Compulsory Enlistment Scheme of the Department of Expenditure, Ministry of
Finance, it is compulsory for Indian agents, who desire to quote directly on
behalf of their foreign principals, to get themselves enlisted with the Central
Purchase Organisation (eg. DGS&D). However, such enlistment is not
equivalent to registration of suppliers as mentioned under Rule 150.
Rule 153
R e s e r v e d I t e m s a n d o t
h e r Purchase/Price Preference Policy. (i) The Central Government, through
administrative instructions, has reserved all items of hand spun and hand-woven
textiles (khadi goods) for exclusive purchase from Khadi Village Industries Commission
(KVIC). It has also reserved all items of handloom textiles required by Central
Government departments for exclusive purchase from KVIC and/or the notified
handloom units of Association of Corporations and Apex Societies of Handlooms
(ACASH). (ii) Ministry of Micro, Small and Medium Enterprises (MSME) have
notified procurement policy under section 11 of the Micro, Small and Medium
Enterprises Development Act, 2006. (iii) The Central Government may, by
notification, provide for mandatory procurement of any goods or services from
any category of bidders, or provide for preference to bidders on the grounds of
promotion of locally manufactured goods or locally provided services.
Rule 154
Purchase of goods without quotation
Purchase of goods upto the value of Rs. 25,000 (Rupees twenty five thousand)
only on each occasion may be made without inviting quotations or bids on the
basis of a certificate to be recorded by the competent authority in the
following format. “I,, am personally satisfied that these goods purchased are
of the requisite quality and specification and have been purchased from a
reliable supplier at a reasonable price.”
Rule 155
Purchase of goods by Purchase
Committee. Purchase of goods costing above Rs. 25,000 (Rupees twenty five thousand
only) and upto Rs.2,50,000/- (Rupees two lakh and fifty thousand only) on each
occasion may be made on the recommendations of a duly constituted Local
Purchase Committee consisting of three members of an appropriate level as
decided by the Head of the Department. The committee will survey the market to
ascertain the reasonableness of rate, quality and specifications and identify
the a p p r o p r i a t e s u p p l i e r. B e f o r e recommending placement
of the purchase order, the members of the committee will jointly record a
certificate as under. “Certified that we, members of the purchase committee are
jointly and individually satisfied that the goods recommended for purchase are
of the requisite specification and quality, priced at the prevailing market
rate and the supplier recommended is reliable and competent to supply the goods
in question, and it is not debarred by Department of Commerce or Ministry/
Department concerned.”
Rule 156 (1)
Purchase of goods directly under
Rate Contract. In case a Ministry or Department directly procures Central
Purchase Organisation (e.g. DGS&D) rate contracted goods from suppliers,
the prices to be paid for such goods shall not exceed those stipulated in the
rate contract and the other salient terms and conditions of the purchase should
be in line with those specified in the Rate Contract. The Ministry or
Department shall make its own arrangement for inspection and testing of such
goods where ever required.
Rule 156 (2)
The Central Purchase Organisation
(e.g. DGS&D) should host the specifications, prices and other salient
details of different rate contracted items, appropriately updated, on the web
site for use by the procuring Ministry or Department.
Rule 157
A demand for goods should not be
divided into small quantities to make piecemeal purchases to avoid the
necessity of obtaining the sanction of higher authority required with reference
to the estimated value of the total demand.
Rule 158
Purchase of goods by obtaining
bids. Except in cases covered under Rule 154,155, and 156(1), Ministries or
Departments shall procure goods under the powers referred to in Rule 147 above
by following the standard method of obtaining bids in : (i) Advertised Tender
Enquiry (ii) Limited Tender Enquiry (iii) Two-Stage Bidding (iv) Single Tender
Enquiry (v) Electronic Reverse Auctions
Rule 159
E-Publishing (i) It is mandatory
for all Ministries/ Departments of the Central Government, their attached and
Subordinate Offices and Autonomous /Statutory Bodies to publish their tender
enquiries, corrigenda thereon and details of bid awards on the Central Public
Procurement Portal (CPPP). (ii) Individual cases where confidentiality is
required, for reasons of national security, would be exempted from the
mandatory e-publishing requirement. The decision to exempt any case on the said
grounds should be approved by the Secretary of the Ministry/ Department with
the concurrence of the concerned Financial Advisor. In the case of Autonomous
Bodies and Statutory Bodies’ approval of the Head of the Body with the
concurrence of the Head of the Finance should be obtained in each such case.
Statistical information on the number of cases in which exemption was granted
and the value of the concerned contract should be intimated on a Quarterly
basis to the Ministry of Finance, Department of Expenditure. (iii) The above
instructions apply to all Tender Enquiries, Requests for Proposals, Requests
for Expressions of Interest, Notice for pre Qualification/ Registration or any
other notice inviting bids or proposals in any form whether they are
advertised, issued to limited number of parties or to a single party. (iv) In
the case of procurements made though DGS&D Rate Contracts or t h r o u g h
a n y o t h e r C e n t r a l Procurement Organizations (CPOs) only award
details need to be published. (v) These instructions would not apply to procurements
made in terms of provisions of Rules 154 (Purchase of goods without quotations)
or 155 (Purchase of goods by purchase committee) of General Financial Rules.
Rule 160
E-Procurement (i) It is mandatory
for Ministries/ Departments to receive all bids through e-procurement portals
in respect of all procurements. (ii) Ministries/ Departments which do not have
a large volume of procurement or carry out procurements required only for
day-to-day running of offices and also have not initiated e-procurement through
any other solution provided so far, may use e-procurement solution developed by
NIC. Other Ministries/ Departments may either use e-procurement solution
developed by NIC or engage any other service provider following due process.
(iii) These instructions will not apply to procurements made by Ministries /
Departments through DGS&D Rate Contracts. (iv) In individual case where
national security and strategic considerations demands confidentiality,
Ministries/ Departments may exempt such cases from e-procurement after seeking
approval of concerned Secretary and with concurrence of Financial Advisers. (v)
In case of tenders floated by Indian Missions Abroad, Competent Authority to
decide the tender, may exempt such case from e - procurement.
Rule 161
Advertised Tender Enquiry (I)
Subject to exceptions incorporated u n d e r R u l e 1 5 4 , 1 5 5 , 1 6 2
and166,invitation to tenders by advertisement should be used for procurement of
goods of estimated value of Rs. 25 lakhs (Rupees Twenty Five Lakh)and above.
Advertisement in such cases should be given on Central Public Procurement
Portal (CPPP) at www.eprocure.gov.in and on GeM. An organisation having its own
website should also publish all its advertised tender enquiries on the website.
(ii) The organisation should also post the complete bidding document in its
website and on CPPP to enable prospective bidders to make use of the document
by downloading from the web site. (iii) The advertisements for invitation of
tenders should give the complete web address from where the bidding documents
can be downloaded. (iv) In order to promote wider participation and ease of
bidding, no cost of tender document may be charged for the tender documents
downloaded by the bidders. (iv) Where the Ministry or Department feels that the
goods of the required quality, specifications etc., may not be available in the
country and it is necessary to also look for suitable competitive offers from
abroad, the Ministry or Department may send copies of the tender notice to the Indian
Embassies abroad as well as to the foreign Embassies in India. The selection of
the embassies will depend on the possibility of availability of the required
goods in such countries. In such cases e-procurement as per Rule 160 may not be
insisted. (v) Ordinarily, the minimum time to be allowed for submission of bids
should be three weeks from the date of publication of the tender notice or
availability of the bidding document for sale, whichever is later. Where the
Department also contemplates obtaining bids from abroad, the minimum period
should be kept as four weeks for both domestic and foreign bidders.
Rule 162
Limited Tender Enquiry (i) This
method may be adopted when estimated value of the goods to be procured is up to
Rupees Twenty five Lakhs. Copies of the bidding document should be sent
directly by speed post/registered post/courier/ email to firms which are borne
on the list of registered suppliers for the goods in question as referred under
Rule 150 above. The number of supplier firms in Limited Tender Enquiry should
be more than three. Efforts should be made to identify a higher number of
approved suppliers to obtain more responsive bids on competitive basis.
Further, an organisation should publish its limited tender enquiries on Central
Public Procurement Portal (CPPP) as per Rule 159. Apart from CPPP, the
organisations should publish the tender enquiries on the Department’s or
Ministry’s web site. (ii) The unsolicited bids should not be accepted. However
Ministries/ Departments should evolve a system by which interested firms can
register and bid in next round of tendering. (iii) Purchase through Limited
Tender Enquiry may be adopted even where the estimated value of the procurement
is more than Rupees twenty-five Lakhs, in the following circumstances. (a) The
competent authority in the Ministry or Department certifies that the demand is
urgent and any additional expenditure involved by not procuring through
advertised tender enquiry is justified in view of urgency. The Ministry or
Department should also put on record the nature of the urgency and reasons why
the procurement could not be anticipated. (b) There are sufficient reasons, to
be recorded in writing by the competent authority, indicating that it will not
be in public interest to procure the goods through advertised tender enquiry.
(c) The sources of supply are definitely known and possibility of fresh
source(s) beyond those being tapped is remote. (iv) Sufficient time should be
allowed for submission of bids in Limited Tender Enquiry cases.
Rule 163
Two bid system (simultaneous
receipt of separate technical and financial bids) : For purchasing high value
plant, machinery etc. of a complex and technical nature, bids may be obtained
in two parts as under : (i) Technical bid consisting of all technical details
along with commercial terms and conditions; and (ii) Financial bid indicating
item-wise price for the items mentioned in the technical bid. The technical bid
and the financial bid should be sealed by the bidder in separate covers duly
super-scribed and both these sealed covers are to be put in a bigger cover
which should also be sealed and duly super-scribed. The technical bids are to
be opened by the purchasing Ministry or Department at the first instance and
evaluated by a competent committee or authority. At the second stage financial
bids of only these technically acceptable offers should be opened after
intimating them the date and time of opening the financial bid for further
evaluation and ranking before awarding the contract.
Rule 164
Two-Stage Bidding (Obtain bids in
two stages with receipt of financial bids after receipt and evaluation of
technical bids) (i) Ministry/Department may procure the subject matter of
procurement by the method of two-stage bidding, if (a) it is not feasible to
formulate detailed specifications or identify specific characteristics for the
subject matter of procurement, without receiving inputs regarding its technical
aspects from bidders; or (b) the character of the subject matter of procurement
is subject to rapid technological advances or market fluctuations or both; or
(c) Ministry/Department seeks to enter into a contract for the purpose of
research, experiment, study or development, except where the contract includes
the production of items in quantities sufficient to establish their commercial
viability or to recover research and development costs; or (d) The bidder is
expected to carry out a detailed survey or investigation and undertake a
comprehensive assessment of risks, costs and obligations associated with the
particular procurement. (ii) The procedure for two stage bidding shall include
the following, namely:— (a) in the first stage of the bidding process, the
Ministry/Department shall invite bids through advertised tender containing the
technical aspects and contractual terms and conditions of the proposed
procurement without a bid price; (b) all first stage bids, which are otherwise
eligible, shall be e v a l u a t e d t h r o u g h a n a p p r o p r i a t e c
o m m i t t e e constituted by the Ministry/ Department; (c) the committee may
hold discussions with the bidders and if any such discussion is held, equal
opportunity shall be given to all bidders to participate in the discussions;
(d) in revising the relevant terms and conditions of the procurement, the
procuring entity shall not modify the fundamental nature of the procurement
itself, but may add, amend or omit any specification of the subject matter of
procurement or criterion for evaluation; (e) in the second stage of the bidding
process, the procuring entity shall invite bids from all those bidders whose
bids at the first stage were not rejected, to present final bid with bid prices
in response to a revised set of terms and conditions of the procurement; (f)
any bidder, invited to bid but not in a position to supply the subject matter
of procurement due to modification in the specifications or terms and
conditions, may withdraw from the bidding proceedings without forfeiting any
bid security that he may have been required to provide or being penalised in
any way, by declaring his intention to withdraw from the procurement
proceedings with adequate justification.
Rule 165
Late Bids. In the case of
advertised tender enquiry or limited tender enquiry, late bids (i.e. bids
received after the specified date and time for receipt of bids) should not be
considered.
Rule 166
Single Tender Enquiry. Procurement
from a single source may be resorted to in the following circumstances : (i) It
is in the knowledge of the user department that only a particular firm is the
manufacturer of the required goods (ii) In a case of emergency, the required
goods are necessarily to be purchased from a particular source and the reason
for such decision is to be recorded and approval of competent authority
obtained. (iii) For standardisation of machinery or spare parts to be
compatible to the existing sets of equipment (on the advice of a competent
technical expert and approved by the competent authority), the required item is
to be purchased only from a selected firm Note : Proprietary Article
Certificate in the following form is to be provided by the Ministry/Department
before procuring the goods from a single source under the provision of sub Rule
166 (i) and 166 (iii) as applicable. (i) T h e i n d e n t e d g o o d s a r e
manufactured by M/s....................... (ii) No other make or model is
acceptable for the following reasons :
...................................................... (iii) Concurrence of
finance wing to the proposal vide: ……………….. (iv) Approval of the competent
authority vide: (Signature with date and designation of the indenting officer)
Rule 167
Electronic Reverse Auction (i)
Electronic Reverse Auction means an online real-time purchasing technique
utilised by the procuring entity to select the successful bid, which involves
presentation by bidders of successively more favourable bids during a scheduled
period of time and automatic evaluation of bids; (ii) A procuring entity may
choose to procure a subject matter of procurement by the electronic reverse
auction method, if: (a) It is feasible for the procuring entity to formulate a
detailed description of the subject matter of the procurement; (b) There is a
competitive market of bidders anticipated to be qualified to participate in the
electronic reverse auction, so that effective competition is ensured; (c) The
criteria to be used by the procuring entity in determining the successful bid
are quantifiable and can be expressed in monetary terms; and (iii) The
procedure for electronic reverse auction shall include the following, namely:
(a) The procuring entity shall solicit bids through an invitation to the
electronic reverse auction to be published or communicated in accordance with
the provisions similar to e-procurement; and (b) The invitation shall, in
addition to the information as specified in e-procurement, include details
relating to access to and registration for the auction, opening and closing of
the auction and Norms for conduct of the auction.
Rule 168
Contents of Bidding Document All
the terms, conditions, stipulations and information to be incorporated in the
bidding document are to be shown in the appropriate chapters as below :-
Chapter – 1: Instructions to Bidders Chapter – 2: Conditions of Contract.
Chapter – 3: Schedule of Requirements. Chapter – 4: Specifications and allied
Technical Details. Chapter – 5: Price Schedule (to be utilised by the bidders
for quoting their prices). Chapter – 6: Contract Form. Chapter – 7: Other
Standard Forms, if any, to be utilised by the purchaser and the bidders.
Rule 169
Maintenance Contract. Depending on
the cost and nature of the goods to be purchased, it may also be necessary to
enter into maintenance contract(s) of suitable period either with the supplier
of the goods or with any other competent firm, not necessarily the supplier of
the subject goods. Such maintenance contracts are especially needed for
sophisticated and costly equipment and machinery. It may, however, be kept in
mind that the equipment or machinery is maintained free of charge by the
supplier during its warranty period or such other extended periods as the
contract terms may provide and the paid maintenance should commence only
thereafter.
Rule 170
Bid Security (i) To safeguard
against a bidder’s withdrawing or altering its bid during the bid validity
period in the case of advertised or limited tender enquiry, Bid Security (also
known as Earnest Money) is to be obtained from the bidders except Micro and
Small Enterprises (MSEs) as defined in MSE Procurement Policy issued by
Department of Micro, Small and Medium Enterprises (MSME) or are registered with
the Central Purchase Organisation or the concerned Ministry or Department. The
bidders should be asked to furnish bid security along with their bids. Amount
of bid security should ordinarily range between two percent to five percent of
the estimated value of the goods to be procured. The amount of bid security
should be determined accordingly by the Ministry or Department and indicated in
the bidding documents. The bid security may be accepted in the form of Account
Payee Demand Draft, Fixed Deposit Receipt, Banker’s Cheque or Bank Guarantee
from any of the Commercial Banks or payment online in an acceptable form, safeguarding
the purchaser’s interest in all respects. The bid security is normally to
remain valid for a period of forty-five days beyond the final bid validity
period. (ii) Bid securities of the unsuccessful bidders should be returned to
them at the earliest after expiry of the final bid validity and latest on or
before the 30th day after the award of the contract. (iii) In place of a Bid
security, the Ministries/ Departments may require Bidders to sign a Bid
securing declaration accepting that if they withdraw or modify their Bids
during the period of validity, or if they are awarded the contract and they
fail to sign the contract, or to submit a performance security before the
deadline defined in the request for bids document, they will be suspended for
the period of time specified in the request for bids document from being
eligible to submit Bids for contracts with the entity that invited the Bids.
Rule 171
Performance Security (i) To ensure
due performance of the contract, Performance Security is to be obtained from
the successful bidder awarded the contract. Unlike contracts of Works and
Plants, in case of contracts for goods, the need for the Performance Security
depends on the market conditions and commercial practice for the particular
kind of goods. Performance Security should be for an amount of five to ten per
cent. of the value of the contract as specified in the bid documents.
Performance Security may be furnished in the form of an Account Payee Demand
Draft, Fixed Deposit Receipt from a Commercial bank, Bank Guarantee from a
Commercial bank or online payment in an acceptable form safeguarding the
purchaser’s interest in all respects. (ii) Performance Security should remain
valid for a period of sixty days beyond the date of completion of all contractual
obligations of the supplier including warranty obligations. (iii) Bid security
should be refunded to the successful bidder on receipt of Performance Security.
Rule 172 (1)
Advance payment to supplier
Ordinarily, payments for services rendered or supplies made should be released
only after the services have been rendered or supplies made. However, it may
become necessary to make advance payments for example in the following types of
cases :- (i) Advance payment demanded by firms holding maintenance contracts
for servicing of Air-conditioners, computers, other costly equipment, etc. (ii)
Advance payment demanded by firms against fabrication contracts, turn-key
contracts etc. Such advance payments should not exceed the following limits :
(a) Thirty per cent. of the contract value to private firms; (b) Forty per
cent. of the contract value to a State or Central Government agency or a Public
Sector Undertaking; or (c) in case of maintenance contract, the amount should
not exceed the amount payable for six months under the contract. Ministries or
Departments of the Central Government may relax, in consultation with their
Financial Advisers concerned, the ceilings (including percentage laid down for
advance payment for private firms) mentioned above. While making any advance
payment as above, adequate safeguards in the form of bank guarantee etc. should
be obtained from the firm.
Rule 172 (2)
Part payment to suppliers:
Depending on the terms of delivery incorporated in a contract, part payment to
the supplier may be released after it dispatches the goods from its premises in
terms of the contract.
Rule 173
Transparency, competition, fairness
and elimination of arbitrariness in the procurement process All government
purchases should be made in a transparent, competitive and fair manner, to
secure best value for money. This will also enable the prospective bidders to
formulate and send their competitive bids with confidence. Some of the measures
for ensuring the above are as follows:- (i) the text of the bidding document
should be self-contained and comprehensive without any a m b i g u i t i e s .
A l l e s s e n t i a l information, which a bidder needs for sending
responsive bid, should be clearly spelt out in the bidding document in simple
language. The condition of prior turnover and prior experience may be relaxed
for Startups (as defined by Department of Industrial Policy and Promotion)
subject to meeting of quality & technical specifications and making
suitable provisions in the bidding document. The bidding document should
contain, inter alia. (a) Description and Specifications of goods including the
nature, quantity, time and place or places of delivery. (b) the criteria for
eligibility and qualifications to be met by the bidders such as minimum level o
f e x p e r i e n c e , p a s t performance, technical capability,
manufacturing facilities and financial position e t c o r l i m i t a t i o n f
o r participation of the bidders, if any. (c) eligibility criteria for goods
indicating any legal restrictions or conditions about the origin of goods etc
which may required to be met by the successful bidder. (d) the procedure as
well as date, time and place for sending the bids. (e) date, time and place of
opening of the bid. (e) Criteria for evaluation of bids (f) special terms
affecting performance, if any. (g) Essential terms of the procurement contract
(h) Bidding Documents should include a clause that “if a firm q u o t e s N I L
c h a r g e s / consideration, the bid shall be treated as unresponsive and
will not be considered”. (ii) Any other information which the procuring entity
considers necessary for the bidders to submit their bids. (iii) Modification to
bidding document: (a) In case any modification is made to the bidding document
or any clarification is issued which materially affects the terms contained in
the bidding document, the procuring entity shall publish or communicate s u c h
m o d i f i c a t i o n o r clarification in the same manner as the publication
or communication of the initial bidding document was made. (b) In case a
clarification or modification is issued to the bidding document, the procuring
entity shall, before the last date for submission of bids, extend such time
limit, if, in its opinion more time is required by bidders to take into account
the clarification or modification, as the case may be, while submitting their
bids. (c) Any bidder who has submitted his bid in response to the original
invitation shall have the opportunity to modify or resubmit it, as the case may
be, or withdraw such bid in case the modification to bidding document
materially affect the essential terms of the procurement, within the period
initially allotted or such extended time as may be allowed for submission of
bids, after the modifications are made to the bidding document by the procuring
entity: Provided that the bid last submitted or the bid as modified by the
bidder shall be considered for evaluation (iv) Suitable provision should be
kept in the bidding document to enable a bidder to question the bidding
conditions, bidding process and/ or rejection of its bid. The reasons for
rejecting a tender or non-issuing a tender document to a prospective bidder
must be disclosed where enquiries are made by the bidder. (v) Suitable
provision for settlement of disputes, if any, emanating from the resultant
contract, should be kept in the bidding document. (vi) The bidding document
should indicate clearly that the resultant contract will be interpreted under
Indian Laws. (vii) The bidders should be given reasonable time to prepare and
send their bids. (viii) The bids should be opened in public and authorised
representatives of the bidders should be permitted to attend the bid opening.
(ix) The specifications of the required goods should be clearly stated without
any ambiguity so that the prospective bidders can send meaningful bids. In
order to attract sufficient number of bidders, the specification should be
broad based to the extent feasible (x) Pre-bid conference: In case of turnkey
contract(s) or contract(s) of special nature for procurement of sophisticated
and costly equipment or wherever felt necessary, a suitable provision is to be
kept in the bidding documents for one or more rounds of pre-bid conference for
clarifying issues and clearing doubts, if any, about the specifications and
other allied technical details of the plant, equipment and machinery etc.
projected in the bidding document. The date, time and place of pre-bid
conference should be indicated in the bidding document. This date should be sufficiently
ahead of bid opening date. The records of such conference shall be intimated to
all bidders and, shall also be exhibited on the website(s) where tender was
published. (xi) C r i t e r i a f o r d e t e r m i n i n g responsiveness are to
be taken into account for evaluating the bids such as: (a) time of delivery.
(b) Performance/ efficiency/ environmental characteristics. (c) the terms of
payment and of guarantees in respect of the subject matter of procurement (d)
price. (e) cost of operating, maintaining and repairing etc. (xii) Bids
received should be evaluated in terms of the conditions already incorporated in
the bidding documents; No new condition which was not incorporated in the
bidding documents should be brought in for e v a l u a t i o n o f t h e b i d
s . D e t e r m i n a t i o n o f a b i d ’ s responsiveness should be based on
the contents of the bid itself without recourse to extrinsic evidence. (xiii)
Bidders should not be permitted to alter or modify their bids after expiry of the
deadline for receipt of bids. (xiv) Negotiation with bidders after bid opening
must be severely d i s c o u r a g e d . H o w e v e r, i n exceptional
circumstances where price negotiation against an ad-hoc procurement is
necessary due to some unavoidable circumstances, the same may be resorted to
only with the lowest evaluated responsive bidder. (xv) In the Rate Contract
system, where a number of firms are brought on Rate Contract for the same item,
negotiation as well as counter offering of rates are permitted to the bidders
and for this purpose special permission has been given to the Directorate
General of Supplies and Disposals (DGS&D). (xvi) Contract should ordinarily
be awarded to the lowest evaluated bidder whose bid has been found to be responsive
and who is eligible and qualified to perform the contract satisfactorily as per
the terms and conditions incorporated in the corresponding bidding document.
However, where the lowest acceptable bidder against ad-hoc requirement is not
in a position to supply the full quantity required, the remaining quantity, as
far as possible, be ordered from the next higher responsive bidder at the rates
offered by the lowest responsive bidder. (xvii) Procurement of Energy Efficient
Electrical Appliances: Ministries/ Departments while procuring electrical
appliances notified by Department of Expenditure shall ensure that they carry
the notified threshold or higher Star Rating of Bureau of Energy Efficiency
(BEE). (xviii) The name of the successful bidder awarded the contract should be
mentioned in the CPPP, Ministries or Departments website and their notice board
or bulletin. (xix) Rejection of all Bids is justified when a. effective
competition is lacking. b. all Bids and Proposals are not substantially
responsive to the r e q u i r e m e n t s o f t h e Procurement Documents. c.
the Bids’/Proposals’ prices are substantially higher that the updated cost
estimate or available budget; or d. none of the technical Proposals meets the
minimum technical qualifying score. (xx) Lack of competition in rule 173(xix)
shall not be determined solely on the basis of the number of Bidders. Even when
only one Bid is submitted, the process may be considered valid provided
following conditions are satisfied: a. t h e p r o c u r e m e n t w a s
satisfactorily advertised and sufficient time was given for submission of bids.
b. the qualification criteria were not unduly restrictive; and c. prices are
reasonable in comparison to market values (xxi) When a limited or open tender
results in only one effective offer, it shall be treated as a single tender
contract. (xxii) In case a purchase Committee is constituted to purchase or
recommend the procurement, no member of the purchase Committee should be
reporting directly to any other member of such Committee in c a s e e s t i m a
t e d v a l u e o f procurement exceeds Rs. 25 lakhs.
Rule 174
Efficiency, Economy and
Accountability in Public Procurement System. Public procurement procedure
should ensure efficiency, economy and accountability in the system. To achieve
the same, the following keys areas should be addressed : (i) To reduce delay,
appropriate time frame for each stage of procurement should be prescribed by
the Ministry or Department. (ii) To minimise the time needed for decision
making and placement of contract, every Ministry/Department, with the approval
of the competent authority, may delegate, wherever necessary, appropriate
purchasing powers to the lower functionaries. (iii) The Ministries or
Departments should ensure placement of contract within the original validity of
the bids. Extension of bid validity must be discouraged and resorted to only in
exceptional circumstances. (iv) The Central Purchase Organisation (e.g.
DGS&D) should bring into the Rate Contract system more and more common user
items which are frequently needed in bulk by various Central Government
Departments. The Central Purchase Organisation (e.g. DGS&D) should also
ensure that the Rate Contracts remain available without any break.
Rule 175 (1)
Code of Integrity No official of a
procuring entity or a bidder shall act in contravention of the codes which
includes (i) prohibition of (a) making offer, solicitation or acceptance of
bribe, reward or gift or any material benefit, either directly or indirectly,
in exchange for an unfair advantage in the procurement process or to o t h e r
w i s e i n f l u e n c e t h e procurement process. (b) a n y o m i s s i o n
, o r misrepresentation that may mislead or attempt to mislead so that
financial or other benefit may be obtained or an obligation avoided. (c) any
collusion, bid rigging or anticompetitive behavior that may impair the
transparency, fairness and the progress of the procurement process. (d)
improper use of information provided by the procuring entity to the bidder with
an intent to gain unfair advantage in the procurement process or for personal
gain. (e) any financial or business transactions between the bidder and any
official of the procuring entity related to tender or execution process of
contract; which can affect the decision of the procuring entity directly or
indirectly. (f) any coercion or any threat to impair or harm, directly or
indirectly, any party or its property to influence the procurement process. (g)
obstruction of any investigation or auditing of a procurement process. (h)
making false declaration or providing false information for participation in a
tender process or to secure a contract; (ii) disclosure of conflict of
interest. (iii) Disclosure by the bidder of any previous transgressions made in
respect of the provisions of sub-clause (i) with any entity in any country
during the last three years or of being debarred by any other procuring entity.
Rule 175 (2)
The procuring entity, after giving
a reasonable opportunity of being heard, comes to the conclusion that a bidder
or prospective bidder, as the case may be, has contravened the code of
integrity, may take appropriate measures.
Rule 176
Buy-Back Offer When it is decided
with the approval of the competent authority to replace an existing old item(s)
with a new and better version, the department may trade the existing old item
while purchasing the new one. For this purpose, a suitable clause is to be
incorporated in the bidding document so that the prospective and interested
bidders formulate their bids accordingly. Depending on the value and condition
of the old item to be traded, the time as well as the mode of handing over the
old item to the successful bidder should be decided and relevant details in
this regard suitably incorporated in the bidding document. Further, suitable
provision should also be kept in the bidding document to enable the purchaser
either to trade or not to trade the item while purchasing the new one.
PROCUREMENT
OF SERVICES A. CONSULTING SERVICES
Rule 177
"Consulting Service"
means any subject matter of procurement (which as distinguished from ‘Non-
Consultancy Services’ involves primarily non-physical project-specific,
intellectual and procedural processes where outcomes/ deliverables would vary
from one consultant to another), other than goods or works, except those
incidental or consequential to the service, and includes professional,
intellectual, training and advisory services or any other service classified or
declared as such by a procuring entity but does not include direct engagement
of a retired Government servant. Note: These Services typically involve
providing expert or strategic advice e.g., management consultants, policy
consultants, communications consultants, Advisory and project related
Consulting Services which include, feasibility studies, project management,
engineering services, finance, accounting and taxation services, training and
development etc.
Rule 178
The Ministries or Departments may
hire external professionals, consultancy firms or consultants (referred to as
consultant hereinafter) for a specific job, which is well defined in terms of
content and time frame for its completion.
Rule 179
This chapter contains the
fundamental principles applicable to all Ministries or Departments regarding
engagement of consultant(s). Detailed instructions to this effect may be issued
by the concerned Ministries or Departments. However, the Ministries or
Departments shall ensure that they do not contravene the basic rules contained
in this chapter.
Rule 180
Identification of Services required
to be performed by Consultants: Engagement of consultants may be resorted to in
situations requiring high quality services for which the concerned Ministry/
Department does not have requisite expertise. Approval of the competent
authority should be obtained before engaging consultant(s).
Rule 181
Preparation of scope of the
required Consultant(s): The Ministries/ Departments should prepare in simple
and concise language the requirement, objectives and the scope of the
assignment. The eligibility and prequalification criteria to be met by the
consultants should also be clearly identified at this stage.
Rule 182
Estimating reasonable expenditure:
Ministry or Department proposing to engage consultant(s) should estimate
reasonable expenditure for the same by ascertaining the prevalent market
conditions and consulting other organisations engaged in similar activities.
Rule 183
Identification of likely sources.
(i) Where the estimated cost of the consulting service is up to Rupees
twenty-five lakhs, preparation of a long list of potential consultants may be
done on the basis of formal or informal enquiries from other Ministries or
Departments or Organisations involved in similar activities, Chambers of
Commerce & Industry, Association of consultancy firms etc. (ii) Where the
estimated cost of the consulting services is above Rupees twenty-five lakhs, in
addition to(i) above, an enquiry for seeking ‘Expression of Interest’ from
consultants should be published on Central Public Procurement Portal (CPPP) at
www.eprocure.gov.in and on GeM. An organisation having its own website should
also publish all its advertised tender enquiries on the website. Enquiry for
seeking Expression of Interest should include in brief, the broad scope of work
or service, inputs to be provided by the Ministry or Department, eligibility
and the pre-qualification criteria to bemet by the consultant(s) and
consultant’s past experience in similar work or service. The consultants may
also be asked to send their comments on the objectives and scope of the work or
service projected in the enquiry. Adequate time should be allowed for getting
responses from interested consultants.
Rule 184
Short listing of consultants. On
the basis of responses received from the interested parties as per Rule 183
above, consultants meeting the requirements should be short listed for further
consideration. The number of short listed consultants should not be less than
three.
Rule 185
Preparation of Terms of Reference
(TOR). The TOR should include (i) Precise statement of objectives. (ii) Outline
of the tasks to be carried out. (iii) Schedule for completion of tasks. (iv)
The support or inputs to be provided by the Ministry or Department to
facilitate the consultancy. (v) The final outputs that will be required of the
Consultant.
Rule 186
Preparation and Issue of Request
for Proposal (RFP). RFP is the document to be used by the Ministry/Department
for obtaining offers from the consultants for the required service. The RFP
should be issued to the shortlisted consultants to seek their technical and
financial proposals. The RFP should contain : (i) A letter of Invitation (ii)
Information to Consultants regarding the procedure for submission of proposal.
(iii) Terms of Reference (TOR). (iv) Eligibility and pre-qualification criteria
in case the same has not been ascertained through Enquiry for Expression of
Interest. (v) List of key position whose CV and experience would be evaluated.
(vi) Bid evaluation criteria and selection procedure. (vii) Standard formats
for technical and financial proposal. (viii) Proposed contract terms. (ix)
Procedure proposed to be followed for midterm review of the progress of the
work and review of the final draft report.
Rule 187
Receipt and opening of proposals
Proposals should ordinarily be asked for from consultants in ‘Two bid’ system
with technical and financial bids sealed separately. The bidder should put
these two sealed envelopes in a bigger envelop duly sealed and submit the same
to the Ministry or Department by the specified date and time at the specified
place. On receipt, the technical proposals should be opened first by the
Ministry or Department at the specified date, time and place.
Rule 188
Late Bids. Late bids i.e. bids
received after the specified date and time of receipt should not be considered.
Rule 189
Evaluation of Technical Bids:
Technical bids should be analysed and evaluated by a Consultancy Evaluation
Committee (CEC) constituted by the Ministry or Department. The CEC shall record
in detail the reasons for acceptance or rejection of the technical proposals
analysed and evaluated by it.
Rule 190
Evaluation of Financial Bids of the
technically qualified bidders: The Ministry or Department shall open the
financial bids of only those bidders who have been declared technically
qualified by the Consultancy Evaluation Committee as per Rule 189 above for
further analysis or evaluation and ranking and selecting the successful bidder
for placement of the consultancy contract.
Rule 191 Methods of Selection/
Evaluation of Consultancy Proposals The basis of selection of the consultant
shall follow any of the methods given in Rule 192 to 194 as appropriate for the
circumstances in each case.
Rule 192. Quality and Cost Based
Selection (QCBS):QCBS may be used for Procurement of consultancy services,
where quality of consultancy is of prime concern. (i) In QCBS initially the
quality of technical proposals is scored as per criteria announced in the RFP.
Only those responsive proposals that have achieved at least minimum specified
qualifying score in quality of technical proposal are considered further. (ii)
After opening and scoring, the Financial proposals of responsive technically
qualified bidders, a final combined score is arrived at by giving predefined
relative weight ages for the score of quality of the technical proposal and the
score of financial proposal. (iii) The RFP shall specify the minimum qualifying
score for the quality of technical proposal and also the relative weight ages
to be given to the quality and cost (determined for each case depending on the
relative importance of quality vis-a-vis cost aspects in the assignment, e.g.
70:30, 60:40, 50:50 etc). The proposal with the highest weighted combined score
(quality and cost) shall be selected. (iv) The weight age of the technical
parameters i.e. non- financial parameters in no case should exceed 80 percent.
Rule 193
Least Cost System (LCS). LCS is
appropriate for assignments of a standard or routine nature (such as audits and
engineering design of non-complex works) where well established methodologies,
practices and standards exist. Unlike QCBS, there is no weight age for
Technical score in the final evaluation and the responsive technically
qualified proposal with the lowest evaluated cost shall be selected.
Rule 194
Single Source Selection/Consultancy
by nomination. The selection by direct negotiation/nomination, on the lines of
Single Tender mode of procurement of goods, is considered appropriate only
under exceptional circumstance such as: (i) tasks that represent a natural
continuation of previous work carried out by the firm; (ii) in case of an
emergency situation, situations arising after natural disasters, situations
where timely completion of the assignment is of utmost importance; and (iii)
situations where execution of the assignment may involve use of proprietary
techniques or only one consultant has requisite expertise. (iv) Under some
special circumstances, it may become necessary to select a particular
consultant where adequate justification is available for such single-source
selection in the context of the overall interest of the Ministry or Department.
Full justification for single source selection should be recorded in the file
and approval of the competent authority obtained before resorting to such
single-source selection. (v) It shall ensure fairness and equity, and shall
have a procedure in place to ensure that the prices are reasonable and
consistent with market rates for tasks of a similar nature; and the required
consultancy services are not split into smaller sized procurement.
Rule 195
Monitoring the Contract. The
Ministry/Department should be involved throughout in the conduct of
consultancy, preferably by taking a task force approach and continuously
monitoring the performance of the consultant(s) so that the output of the
consultancy is in line with the Ministry /Department’s objectives.
Rule 196
Public competition for Design of
symbols/logos. Design competition should be conducted in a transparent, fair
and objective manner. Wide publicity should be given to the competition so as
to ensure that the information is accessible to all possible participants in
the competition. This should include publication on the website of
Ministry/Department concerned, as also the Central Public Procurement Portal.
If the selection has been by a jury of experts nominated for the purpose, the
composition of the jury may also be notified.
B.
OUTSOURCING OF SERVICES
Rule 197
"Non-Consulting Service"
means any subject matter of procurement (which as distinguished from
‘Consultancy Services’), involve physical, measurable deliverables/ outcomes,
where performance standards can be clearly identified and consistently applied,
other than goods or works, except those incidental or consequential to the
service, and includes maintenance, hiring of vehicle, outsourcing of building
facilities management, security, photocopier service, janitor, office errand
services, drilling, aerial photography, satellite imagery, mapping etc.
Rule 198
Procurement of Non-consulting
Services. A Ministry or Department may procure certain non-consulting services
in the interest of economy and efficiency and it may prescribe detailed
instructions and procedures for this purpose without, however, contravening the
following basic guidelines.
Rule 199
Identification of likely
contractors. The Ministry or Department should prepare a list of likely and
potential contractors on the basis of formal or informal enquiries from other
Ministries or Departments and Organisations involved in similar activities,
scrutiny of ‘Yellow pages’, and trade journals, if available, web site etc.
Rule 200
Preparation of Tender enquiry.
Ministry or Department should prepare a tender enquiry containing, inter alia :
(i) The details of the work or service to be performed by the contractor; (ii)
The facilities and the inputs which will be provided to the contractor by the
Ministry or Department; (iii) Eligibility and qualification criteria to be met
by the contractor for performing the required work/service; and (iv) The
statutory and contractual obligations to be complied with by the contractor.
Rule 201
Invitation of Bids. (i) For
estimated value of the non consulting service up to Rupees ten lakhs or less:
The Ministry or Department should scrutinize the preliminary list of likely
contractors as identified as per Rule 199 above, decide the prima facie
Eligible and capable contractors and issue limited tender enquiry to them
asking for their offers by a specified date and time etc. as per standard
practice. The number of the contractors so identified for issuing limited
tender enquiry should be more than three. (ii) For estimated value of the non consulting
service above Rs.10 lakhs: The Ministry or Department should issue
advertisement in such case should be given on Central Public Pr o c u r e m e n
t Po r t a l ( C P P P ) a t www.eprocure.gov.in and on GeM. An organisation
having its own website should also publish all its advertised tender enquiries
on the website. The advertisements for invitation of tenders should give the
complete web address from where the bidding documents can be downloaded.
Rule 202
Late Bids. Late bids i.e. bids
received after the specified date and time of receipt should not be considered.
Rule 203
Evaluation of Bids Received. The
Ministry or Department should evaluate, segregate, rank the responsive bids and
select the successful bidder for placement of the contract.
Rule 204
Procurement of Non-consulting
services by nomination. Should it become necessary, in an exceptional situation
to procure a non-consulting service from a specifically chosen contractor, the
Competent Authority in the Ministry or Department may do so in consultation
with the Financial Adviser. In such cases the detailed justification, the
circumstances leading to such procurement by choice and the special interest or
purpose it shall serve, shall form an integral part of the proposal.
Rule 205
Monitoring the Contract. The
Ministry or Department should be involved throughout in the conduct of the
contract and continuously monitor the performance of the contractor.
Rule 206
Any circumstances which are not
covered in Rule 198 to Rule 205 for procurement of non-consulting services, the
procuring entity may refer Rule 135 to Rule 176 pertaining to procurement of
goods and not to the procurement of consulting services.
Multiple
choice questions:
1. What does the term 'goods'
include as per Rule 143?
- A) Only physical items like furniture and machinery
- B) Only intangible products like software and patents
- C) All articles, materials, and services incidental to
the supply of goods
- D) Only items purchased for a library
Answer: C) All articles, materials, and services incidental to the
supply of goods
2.According to Rule 144, which of
the following is a fundamental principle of public buying?
- A) Specification should be based solely on
international standards
- B) Offers should be invited through a closed tendering
process
- C) The procuring authority must ensure fairness,
transparency, and competition
- D) Procurement must always be done through direct
negotiation
Answer: C) The procuring authority must ensure fairness,
transparency, and competition
3.What is the maximum value of
goods that can be purchased without inviting quotations or bids according to
Rule 154?
- A) Rs. 10,000
- B) Rs. 25,000
- C) Rs. 50,000
- D) Rs. 1,00,000
Answer: B) Rs. 25,000
4.Under Rule 156, what must a
Ministry or Department ensure when procuring goods directly under a rate
contract?
- A) Prices must not exceed those stipulated in the rate
contract
- B) The procurement must be done through competitive
bidding
- C) Goods must be inspected and tested by an external
agency
- D) A new rate contract must be negotiated for each
procurement
Answer: A) Prices must not exceed those stipulated in the rate
contract
5.According to Rule 147, what
should a Ministry or Department do if it lacks the expertise for procurement?
- A) Avoid procurement until expertise is developed
- B) Procure goods through direct negotiation with
suppliers
- C) Project its indent to the Central Purchase
Organisation with competent authority approval
- D) Only procure goods available through local vendors
Answer: C) Project its indent to the Central Purchase Organisation
with competent authority approval
6.What is the primary purpose of
the Government e-Marketplace (GeM) as described in Rule 149?
- A) To offer a platform for physical auctions
- B) To host an online marketplace for common use goods
and services
- C) To regulate prices of goods through fixed contracts
- D) To provide a catalog of high-value goods only
Answer: B) To host an online marketplace for common use goods and
services
7.Which Rule specifies that all
tender enquiries and bid awards must be published on the Central Public
Procurement Portal (CPPP)?
- A) Rule 145
- B) Rule 149
- C) Rule 159
- D) Rule 160
Answer: C) Rule 159
8.What action must be taken if a
bidder has been convicted under the Prevention of Corruption Act, according to
Rule 151?
- A) The bidder can continue to participate in procurement
processes
- B) The bidder will be debarred from participating in
procurement processes for up to three years
- C) The bidder will be automatically reinstated after
appeal
- D) The bidder will be banned indefinitely without
appeal
Answer: B) The bidder will be debarred from participating in
procurement processes for up to three years
9.According to Rule 150, what
should be verified before registering suppliers?
- A) Their political affiliations
- B) Their manufacturing capability and financial
background
- C) Their personal references
- D) Their environmental impact
Answer: B) Their manufacturing capability and financial background
10.Under Rule 160, which of the
following is an exception to the mandatory e-procurement requirement?
- A) Procurement of goods through GeM
- B) Tenders for items listed in the rate contracts
- C) Tenders related to national security and strategic
considerations
- D) All procurement made through DGS&D Rate
Contracts
Answer: C) Tenders related to national security and strategic considerations.
11. According to Rule 161, for goods
with an estimated value of Rs. 25 lakhs and above, where should advertisements
for tenders be published?
a) Only on the Ministry's website
b) On Central Public Procurement Portal (CPPP) and GeM
c) On local newspapers
d) On the official website of the supplier
Answer: b) On Central Public Procurement Portal (CPPP) and GeM
12. What is the minimum time
required for submission of bids for advertised tenders, as per Rule 161?
a) One week
b) Two weeks
c) Three weeks
d) Four weeks
Answer: c) Three weeks
13. Under Rule 162, what is the
maximum estimated value for goods that can be procured through a Limited Tender
Enquiry?
a) Rs. 10 lakhs
b) Rs. 20 lakhs
c) Rs. 25 lakhs
d) Rs. 50 lakhs
Answer: c) Rs. 25 lakhs
14. According to Rule 163, what does
the Two-Bid System entail?
a) Receiving bids in three parts:
Technical, Financial, and Legal
b) Receiving separate technical and financial bids in separate covers
c) Receiving only technical bids and no financial bids
d) Receiving all bids in one cover
Answer: b) Receiving separate technical and financial bids in
separate covers
15. In which scenario can the
Two-Stage Bidding method be adopted, as per Rule 164?
a) When the procurement involves
standard, well-defined goods
b) When the procurement is for high-value goods with established specifications
c) When detailed specifications are not feasible without bidder inputs
d) When only local suppliers are involved
Answer: c) When detailed specifications are not feasible without
bidder inputs
16. What should be the validity
period of a bid security, according to Rule 170?
a) 30 days beyond the bid validity
period
b) 45 days beyond the bid validity period
c) 60 days beyond the bid validity period
d) 90 days beyond the bid validity period
Answer: b) 45 days beyond the bid validity period
17. As per Rule 171, what is the
typical percentage range for Performance Security in a goods contract?
a) 2-5%
b) 5-10%
c) 10-15%
d) 15-20%
Answer: b) 5-10%
18. Rule 172 allows advance payments
under which of the following conditions?
a) Advance payment is always
permitted for any procurement
b) For maintenance contracts, the advance payment should not exceed the amount
payable for six months
c) Advance payment is only allowed for international suppliers
d) Advance payment can be up to 50% of the contract value for any type of firm
Answer: b) For maintenance contracts, the advance payment should
not exceed the amount payable for six months
19. What is one of the key
principles outlined in Rule 173 regarding government procurement?
a) Procurement should always be done
through single-source suppliers
b) The procurement process should be transparent, competitive, and fair
c) Bids should only be considered if submitted in physical format
d) Procurement should be based on the lowest price only
Answer: b) The procurement process should be transparent,
competitive, and fair
20. According to Rule 173, which of
the following is NOT a reason for rejecting all bids?
a) Effective competition is lacking
b) Bids’ prices are substantially higher than the available budget
c) None of the technical proposals meets the minimum technical qualifying score
d) The bidding process was not advertised
Answer: d) The bidding process was not advertised
21. According to Rule 174, what
should be prescribed by the Ministry or Department to reduce delays in the
public procurement system?
a) A list of approved vendors
b) Appropriate time frame for each stage of procurement
c) Minimum bid amounts
d) Standardized contract formats
Answer: b) Appropriate time frame
for each stage of procurement
22. What should be discouraged
according to Rule 174 regarding bid validity?
a) Extension of bid validity
b) Pre-qualification of bidders
c) Early submission of bids
d) Rejection of late bids
Answer: a) Extension of bid validity
23. What is prohibited under Rule
175 (1) in the code of integrity?
a) Accepting gifts from friends
b) Providing misleading information to avoid obligations
c) Participating in competitive bidding
d) Consulting with other bidders
Answer: b) Providing misleading
information to avoid obligations
24. What should a Ministry or
Department do if a bidder is found to have contravened the code of integrity as
per Rule 175 (2)?
a) Award the contract to the bidder anyway
b) Take appropriate measures after giving a reasonable opportunity of being
heard
c) Ignore the contravention if it is minor
d) Automatically disqualify the bidder without hearing them
Answer: b) Take appropriate measures
after giving a reasonable opportunity of being heard
25. In Rule 176, when a department
decides to replace old items with new ones, what should be incorporated into
the bidding document?
a) A clause for trading the old item
b) A clause for the complete removal of old items
c) A clause for partial replacement of old items
d) A clause for a fixed discount on the new item
Answer: a) A clause for trading the
old item
26. According to Rule 177, what does
"Consulting Service" include?
a) Goods and physical products
b) Non-consultancy services
c) Professional, intellectual, training, and advisory services
d) Only direct engagement of retired Government servants
Answer: c) Professional,
intellectual, training, and advisory services
27. What should the Ministries or
Departments do before engaging consultants according to Rule 180?
a) Prepare a list of potential consultants
b) Estimate the cost of the consulting services
c) Obtain approval from the competent authority
d) Publish the tender enquiry on GeM
Answer: c) Obtain approval from the
competent authority
28. What is required in the scope of
the assignment for consultants as per Rule 181?
a) Detailed cost breakdown
b) Simple and concise language for requirement, objectives, and scope
c) A comprehensive market analysis
d) A list of all potential consultants
Answer: b) Simple and concise
language for requirement, objectives, and scope
29. For consulting services with an
estimated cost above Rupees twenty-five lakhs, what additional step is required
according to Rule 183?
a) Conducting a local survey
b) Seeking 'Expression of Interest' from consultants
c) Direct negotiation with pre-selected consultants
d) Organizing a public competition
Answer: b) Seeking 'Expression of
Interest' from consultants
30. What should be included in the
Terms of Reference (TOR) as per Rule 185?
a) Financial proposal format
b) Detailed marketing strategy
c) Precise statement of objectives and tasks
d) Consultant's personal biography
Answer: c) Precise statement of
objectives and tasks
31. What method is used for
consultancy service procurement where quality is of prime concern according to
Rule 192?
a) Least Cost System (LCS)
b) Quality and Cost Based Selection (QCBS)
c) Single Source Selection
d) Open Tendering
Answer: b) Quality and Cost Based
Selection (QCBS)
32. When should the Least Cost
System (LCS) be used for consultancy services as per Rule 193?
a) For assignments requiring high-quality inputs
b) For standard or routine assignments with established methodologies
c) When there is a need for innovative solutions
d) For urgent and emergency situations
Answer: b) For standard or routine
assignments with established methodologies
33. Under Rule 194, in which of the
following circumstances is Single Source Selection considered appropriate?
a) When the task is routine and well-defined
b) In cases where only one consultant has the requisite expertise
c) For tasks requiring multiple consultants
d) For assignments with no prior work history
Answer: b) In cases where only one
consultant has the requisite expertise
34. According to Rule 195, how
should a Ministry or Department monitor a consultancy contract?
a) By involving external auditors only
b) By continuously monitoring the performance with a task force approach
c) By reviewing only the final outputs
d) By waiting until the end of the consultancy period
Answer: b) By continuously
monitoring the performance with a task force approach
35. In Rule 197, what does
"Non-Consulting Service" include?
a) Project management and policy advice
b) Physical, measurable deliverables such as maintenance and security services
c) Professional intellectual services
d) Only direct engagement of retired Government servants
Answer: b) Physical, measurable
deliverables such as maintenance and security services
36. For procurement of
non-consulting services with an estimated value above Rs.10 lakhs, what is
required as per Rule 201?
a) Limited tender enquiry to identified contractors
b) Advertisement on the Central Public Procurement Portal (CPPP) and GeM
c) Direct negotiation with potential contractors
d) Sole source selection
Answer: b) Advertisement on the
Central Public Procurement Portal (CPPP) and GeM
37. How should the Ministry or
Department handle late bids according to Rules 202 and 206?
a) Consider them based on merit
b) Include them if they offer better terms
c) Reject them if received after the specified date and time
d) Accept them with a penalty
Answer: c) Reject them if received
after the specified date and time.
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