FREE ELECTRONIC LIBRARY - Abstracts, books, theses

Pages:     | 1 |   ...   | 7 | 8 || 10 | 11 |   ...   | 26 |

«Government of India Ministry of Finance Department of Expenditure General Financial Rules, 2005* (* Amendments issued upto March 2010 have been added as ...»

-- [ Page 9 ] --

(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.

–  –  –

Rule 156. 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 157. 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 those who are registered with the Central Purchase Organisation, National Small Industries Corporation (NSIC) 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 exact 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 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.

Rule 158. Performance Security :

(i) To ensure due performance of the contract, Performance Security is to be obtained from the successful bidder awarded the contract. Performance Security is to be obtained from every successful bidder irrespective of its registration status etc. Performance Security should be for an amount of five to ten per cent. of the value of the contract. 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 in an acceptable form safeguarding the purchasers 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 159.

(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 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 :

(i) Thirty per cent. of the contract value to private firms;

(ii) Forty per cent. of the contract value to a State or Central Government agency or a Public Sector Undertaking; or (iii) 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.

(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 despatches the goods from its premises in terms of the contract.

Rule 160. 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 ambiguities. All essential information, which a bidder needs for sending responsive bid, should be clearly spelt out in the bidding document in simple language. The bidding document should contain, inter alia;

(a) the criteria for eligibility and qualifications to be met by the bidders such as minimum level of experience, past performance, technical capability, manufacturing facilities and financial position etc.;

(b) 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;

(c) the procedure as well as date, time and place for sending the bids;

(d) date, time and place of opening of the bid;

(e) terms of delivery;

(f) special terms affecting performance, if any.

(ii) 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.

(iii) Suitable provision for settlement of disputes, if any, emanating from the resultant contract, should be kept in the bidding document.

(iv) The bidding document should indicate clearly that the resultant contract will be interpreted under Indian Laws.

(v) The bidders should be given reasonable time to send their bids.

(vi) The bids should be opened in public and authorised representatives of the bidders should be permitted to attend the bid opening.

(vii) 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. Efforts should also be made to use standard specifications which are widely known to the industry.

(viii) Pre-bid conference : In case of turn-key contract(s) or contract(s) of special nature for procurement of sophisticated and costly equipment, a suitable provision is to be kept in the bidding documents for a 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 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.

(ix) Criteria for determining responsiveness of bids, criteria as well as factors to be taken into account for evaluating the bids on a common platform and the criteria for awarding the contract to the responsive lowest bidder should be clearly indicated in the bidding documents.

(x) 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 evaluation of the bids. Determination of a bid’s responsiveness should be based on the contents of the bid itself without recourse to extrinsic evidence.

(xi) Bidders should not be permitted to alter or modify their bids after expiry of the deadline for receipt of bids.

(xii) Negotiation with bidders after bid opening must be severely discouraged. However, in 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.

(xiii) 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 with the bidders in view and for this purpose special permission has been given to the Directorate General of Supplies and Disposals (DGS&D).

(xiv) 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.

(xv) The name of the successful bidder awarded the contract should be mentioned in the Ministries or Departments notice board or bulletin or web site Rule 161. Efficiency, Economy and Accountability in Public Procurement System : Public procurement procedure is also to 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. Such a time frame will also make the concerned purchase officials more alert.

(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 162. 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.


Rule 163. 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 or outsource certain services.

Rule 164. This chapter contains the fundamental principles applicable to all Ministries or Departments regarding engagement of consultant(s) and outsourcing of services.

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 165. Identification of Work/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 166. Preparation of scope of the required work/service : 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 167. 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 168. Identification of likely sources :

(i) Where the estimated cost of the work or service is upto 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 work or service is above Rupees twenty-five lakhs, in addition to (i) above, an enquiry for seeking ‘Expression of Interest’ from consultants should be published in at least one national daily and the Ministry’s web site. The web site address should also be given in the advertisements. 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 be met 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 169. Short listing of consultants : On the basis of responses received from the interested parties as per Rule 168 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 170. 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 171. 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 work/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 incase 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.

Pages:     | 1 |   ...   | 7 | 8 || 10 | 11 |   ...   | 26 |

Similar works:

«Springwood United Football Club Inc. 46 YEARS IN SPORT (1967–2012) END OF SEASON MAGAZINE BOARD Wayne Moloney Chairman 0409 908 204 Craig Adams Vice Chairman 0414 542 435 Vicki Ruttley General Manager 0419 992 148 Anja Minney Director of Finance 0413 633 489 Vacant Director of Marketing Jenny Paton Director of Human Resources 0459 550 408 Chris Gilchrist President of Football 0407 208 995 Iain Lynch President of Rep Football 0439 702 978 FOOTBALL COMMITTEE Chris Gilchrist President of...»

«THIRD UNESCO WORLD FORUM ON CULTURE AND CULTURAL INDUSTRIES CULTURE, CREATIVITY AND SUSTAINABLE DEVELOPMENT. INNOVATION, RESEARCH, OPPORTUNITIES. Florence, 2-4 October 2014 PRESENTATIONS of the THEMATIC PANEL THE POWER OF CULTURE FOR INCLUSIVE SOCIETIES Friday 3 October 2014 Carlos Javier Villaseñor Anaya (Mexico), President, Cultural Interactivity and Development Moderator: Rapporteur: Jenny Fatou Mbaye (Senegal), Postdoctoral Fellow African Urban Cultural Economy, African Centre for Cities,...»

«Youth Financial Inclusion: Promising Examples For Achieving Youth Economic Empowerment prepared by Myka reinsch in collaboration with the e-Mfp Youth financial inclusion action Group N°5 Number 5, October 2012 Edited by the European Microfinance Platform Youth Financial Inclusion: Promising Examples For Achieving Youth Economic Empowerment European Dialogue Number 5, October 2012 Prepared by Myka Reinsch in collaboration with the e-MFP Youth Financial Inclusion Action Group With the support of...»


«Working Paper No. 837 Financing the Capital Development of the Economy: A Keynes-Schumpeter-Minsky Synthesis by Mariana Mazzucato* University of Sussex L. Randall Wray† Levy Economics Institute of Bard College May 2015 * m.mazzucato@sussex.ac.uk † wrayR@umkc.edu This paper was prepared for the project “Financing Innovation: An Application of a Keynes-SchumpeterMinsky Synthesis,” funded in part by the Institute for New Economic Thinking, INET grant no. IN012-00036, administered through...»

«Journal of Finance and Accountancy Managerial and Functional Influences on Perceived Environmental Uncertainty Lookman Buky Folami Bryant University Thomas L. Powers University of Alabama at Birmingham ABSTRACT Perceived environmental uncertainty (PEU) is an important construct in behavioral research that has been widely studied. Critics argue that management should be used in the measurement of PEU, though many studies continue to ignore the distinction between management and non-management in...»

«Consolidated Report of the Integrated Support Team Review of health overspending and macro-assessment of the public health system in South Africa Strictly Private & Confidential May 2009 Consolidated Report of the Integrated Support Team TABLE OF CONTENTS Contributors Acknowledgements Abbreviations and Acronyms Executive Summary 1. FINANCE 2. LEADERSHIP, GOVERNANCE AND SERVICE DELIVERY 3. HUMAN RESOURCES 4. INFORMATION MANAGEMENT 5. MEDICAL PRODUCTS 6. LABORATORY 7. TECHNOLOGY AND...»

«SOJOURNERS on the issues A discussion guide from the editors of Sojourners magazine This series is designed to spark discussion and thought about how to live out God’s call for justice in our world. This guide includes four sessions, each with Sojourners articles, questions for discussion, and ideas for further study. We recommend printing out the guide for each person, and allowing everyone time to read before the group meets. The resources here are a starting point for a further...»

«China’s Financial System: Past Reforms, Future Ambitions and Current State Patrick Hess Abstract Commensurate with its economic strength, China aims for a financial sector and currency of global importance. To assess the likelihood of this ambition in the light of the not fully convertible renminbi and sheltered financial system, this essay reviews past reform efforts and the current state of the Chinese form of capitalism. It finds that after a decade of bold financial reforms under...»

«Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 1, No.4; December 2011 EFFECT OF MERGERS ON TECHNICAL AND SCALE EFICIENY OF BANKS: TWO CASES OF PAKISTAN BANK MERGERS Muhammad Khyzer Bin Dost, Hafiz Zaffar Ahmad Lecturer, Hailey Collage of Commerce, University of the Punjab Lahore Khudaija Warraich Research Scholar, Hailey Collage of Commerce, University of the Punjab Lahore ABSTRACT This paper investigated the effect of mergers on the technical, pure technical and scale...»

«International Journal of Academic Research in Business and Social Sciences September 2014, Vol. 4, No. 9 ISSN: 2222-6990 Religion in Nigerian Political Space: Implication for Sustainable National Development Ntamu, G. U. Dept. of Religious and Cultural Studies, University of Calabar Nigeria Abia O. T. Dept. of History, University of Calabar Nigeria Edinyang, S. D. Dept. of Curriculum and Teaching, Social studies/Education Unit University of Calabar, Nigeria Eneji, Chris-Valentine Ogar...»

«Advice paper to the Value for Money and Policy Review of Disability Services Programme A Contemporary Developments in Disability Services Paper July 2010 NDA advice paper July 2010 to Value for Money and Policy Review of Disability Services National Disability Authority Advice paper to the Value for Money and Policy Review of Disability Services Programme July 2010 Summary conclusions Section 1 Background 1. Introduction Deliver better outcomes for funds invested in disability services Align...»

<<  HOME   |    CONTACTS
2017 www.sa.i-pdf.info - Abstracts, books, theses

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.