Government purchases are done through tendering process.
Fundamental Principle of Public buying
- Procurement of goods in Public Interest for
- Efficiency
- Economy
- Transparency
- Fair & Equitable treatment of suppliers
- Promotion of Competition
GFR: Rule 145
- Purchase of goods without quotation
- Value up to 15000/-
- Each occasion
Certificate to be recorded by the competent Authority –
“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.”
GFR: Rule 146
- Purchase of goods by Purchase Committee >15000/- and up to 1Lac on each occasion
- Three members Committee as decided by the HoD
Committee’s responsibilities
- Market Survey
- Reasonableness of Rates
- Quality & Specifications
- Identify appropriate supplier
- Joint Certificate by the Committee
Purchase of goods by obtaining bids(Tendering)
Ministry / Departments of Govt. of India have been delegated full powers to make their own arrangements for procurement of goods
Rule 141 of GFR says about Central Purchase Organisation (e.g. DGS&D) RATE CONTRACT
Types of Tender
In broader terms there are three types of tender : –
- Open Tender
- Tender value >= 25 Lac
- Ad in Indian Trade Journal(ITJ)
- At least one National Daily having wide circulation
- Publish at own website & NIC website
- NIT to Indian Embassies abroad as well as foreign embassies in India
- Three Weeks time from date of publication of bid
- Limited Tender
- Value up to 25 Lac
- Bid document should be sent to Regd. Suppliers by Speed Post/Regd Post/Courier/ e-mail
- of supplier firms in Ltd. Tender should be more than three
- Web based publicity
Please note sufficient time should be given in Ltd. Tender
- Single Tender
- If only a particular firm is the manufacturer
- Emergent need to procure from a particular source
- Technical reason to be recorded (standardization of machinery – HP, SONY etc. )
- Note that single response to an open bid can’t be termed as Single Tender
Standard Bid Document
It is an instruction to bidder and has conditions of contract, schedule of requirement, specifications and allied technical details, Price Schedule. It also has contract form and other standard forms.
Earnest Money Deposit (EMD)
It safeguard the interest of Deptt (withdrawal / alter the bid by bidder). It is usually of 2 % to 5% of estimated project value and can be DD or FDR or Banker Cheque or bank guarantee. EMD is returned for unsuccessful bidders.
Process at a glance
- Estimate (Qty. and Amount)
- EOI – Expression of Interest
- RFP/RFQ – Request for Proposal / Quotation
- PBC – Pre Bid Conference
- NIT – Notice Inviting Tender
- APPROVAL
- WEB PUBLICITY
- EMD – Earnest Money Deposit
- BIDDING
- TOC – Tender Opening Committee (Tech)
- APPROVAL