Guidelines for Purchase

8/12/2019 Guidelines for Purchase

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IMPORTANTGUIDELINESFORPURCHASEOFGOODSBASED

ONREVISEDGENERALFINANCIALRULES.

1. DEFINITIONOFGOODS(ReferRule136ofGFR)

The term goods includes all articles, material, commodities, livestock, furniture,

fixtures, raw material, spares, instruments, machinery, equipment, industrial plant, etc.,

purchasedorotherwiseacquiredfortheuseoftheInstitutebutexcludesbooks,publications,

periodicals,etc.foralibrary.

2. Every purchase case should be initiated on receipt of a written

requirement/requisition,withdetailedspecification.

3.

PURCHASEOF

GOODS

WITHOUT

QUOTATION

(Refer

Rule

145

of

GFR).

GoodsuptoavalueofRs.15000/ oneachoccasionwithacertificatefromtheHOD

I am personally satisfied that the goods purchased are of requisite quality and

specificationandhavebeenpurchasedfromareliablesupplieratreasonableprice.

4. PURCHASEOFGOODSBYPURCHASECOMMITTEE(ReferRule146ofGFR)

GoodsuptoavalueofRs.1.00 lacmaybepurchasedonrecommendationofa local

purchase committee consistingof 3 faculty andone Financemember. The committeewill

survey themarket to ascertain the reasonableness of rate, quality and specifications and

identify theappropriatesupplier. Before recommendingplacementofpurchaseorder, the

membersofthecommitteewilljointlyrecordthefollowingcertificate:

Certifiedthatwethemembersofthepurchasecommitteearejointlyandindividually

satisfied that the goods recommended for purchase are of the requisite quality and

specificationspricedattheprevailingmarketrateandthesupplierrecommended isreliable

andcompetenttosupplythegoodsinquestion.

NOTE: Large purchases should not be split in smaller lots so as to qualify under direct

purchase.

5. PURCHASEBYTENDER

i). Committeeofat least fourmembers ( three facultyandone fromFinanceSection)

maybeconstitutedfordraftingthelimited/advertisedtender.Thesamecommitteewillopen

thebidsandgiverecommendationsonthebasisofcomparativestatement.

ii) LimitedtenderenquiryuptoRs.25lacs.Tenderdocument/quotationlettertobesent

byspeedpost/registeredposttosuppliers.KendriyaBhandarandNCCFshallalsobeincluded

in

the

list

of

suppliers.

Web

based

publicity

to

be

given

for

limited

tender

enquiry.

Sufficient

timenormally2130daysshouldbeallowedforsubmissionofbids.Twobidsystemmaybe

followed in limitedtender incaseswherepurchase isofplant,machineryofacomplexand

technical nature and in the cases of contracts. Purchase committee constituted for the

purposeshalldecidethisbeforeinitiatingthepurchase.(ReferRule151ofGFR)

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iii) AdvertisedtenderenquiryaboveRs.25lacsbypublicationofadvertisementinatleast

one national daily having vide circulation and Indian Tradejournal published by Director

GeneralofCommercialIntelligence&Statistics,Kolkata. Tenderisalsorequired

tobe

published

on

the

website.

If

downloading

bidding

document

is

priced,

clear

instructionsbe given to attachdemanddraft alongwith bid.Website addressbe given in

advertisements. 4to6weeksminimumtimebegivenfromdateofpublicationoravailability

oftenderdocuments,whicheverislater.(ReferRule150ofGFR).

6. TWOBIDSYSTEM(ReferRule152ofGFR)

Inthecaseofopen/advertisedtenderbidshallbeobtainedintwoparts:

a) Technical bid consisting of all technical details along with commercial terms and

conditionsand

b) Financialbidindicatingitemwisepricefortheitemsmentionedintechnicalbid.

Itmaybeclarifiedinthetenderthatthetechnicalbidandcommercialbidshouldbe

sealedbythebidderinseparatecoversdulysuperscribedandboththesecoversaretobeput

inabiggercoverwhichshouldalsobesealedanddulysuperscribed. Thetechnicalbidsareto

be opened at the first stage and financial bids of only the technically acceptable offers

evaluatedbyacompetentcommitteeorauthorityshouldbeopenedforfurtherevaluation.

Thepurchasecommitteeconstitutedforthepurchaseshallevaluatethetechnicalbids.

7. LATEBIDS(ReferRule153ofGFR)

Inthe

case

of

advertised

tender

enquiry

(open

tender)

or

limited

tender

enquiry,

late

bids(i.e.bidsreceivedafterthedateandtimeforreceiptofbids)shouldnotbeconsidered.

8. SINGLETENDERENQUIRY(ReferRule154ofGFR)

Incaseofprocurementfromsinglesourceoritemsofproprietarynaturethefollowing

documentsbeattached:

i) Latestproprietaryarticlecertificatefromthemanufacturerinoriginalornotarized in

thefollowingformat:

This is to certify that (Name of product) is/are our proprietary product and

manufacturedonlybyus.

ii) Soleauthorizeddistributorcertificate fromthemanufacturer inoriginalornotarized

incaseswheremanufacturerisnotsupplyingtheproductdirectlybutthroughadistributor.

iii) Acertificatefromthesupplierthattheitemhasnotbeensoldatpricelowerthanthat

quoted to PEC during that financial year. Reasonability of pricemay be ensured in single

tenderpurchase.

iv)

Proprietaryarticle

certificate

as

per

Rule

154

of

GFR

is

to

be

given

by

the

concerned

HODinthefollowingformat:

A) Theindentedgoodsaremanufacturedby_________________

B) Noothermakeormodelisacceptableforthefollowingreasons:.

9. ItemsavailableunderDGS&DRatecontractcanbeprocuredatthepricesmentioned

in theRateContractbut the supplyorder shouldbeplacedat theaddress specified in the

Contract

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10. BIDSECURITY(ReferRule157ofGFR)

Earnestmoneybetween2to5percentoftheestimatedvaluetobetakenfromthe

prospectivebidders

in

case

of

limited/advertised

tender

in

the

form

of

Account

payee

Demand Draft, Bankers cheque or a Bank Guarantee from a commercial bank. Suppliers

registeredwithDirectorGeneralofSupplies&Disposals(DGS&D),NationalSmall Industries

Corporation(NSIC),Govtapprovedsourcesareexempted. TenderwithoutEMDshouldbe

consideredunresponsiveandrejected.

11. PERFORMANCESECURITY(ReferRule158ofGFR)

ForcontractsabovevalueofRs.1.00 lac,performancesecurityof25percentofthe

valueofcontracttobeobtainedfromthesuccessfulbidderawardedthecontractintheform

ofAccountpayeeDemandDraftorBankguaranteefromacommercialbankwhichshouldbe

valid for a period of 60 days beyond the completion of all contractual obligations of the

supplier includingwarranty. Performance security is to be forfeited and credited to the

Instituteintheeventofbreachofcontractualobligationbythesupplier,intermsofrelevant

contract

12. ADVANCEPAYMENTTOSUPPLIER(ReferRule159ofGFR)

Ordinarily,paymentsforservicesrenderedorsuppliesmadeshouldbereleasedonly

aftertheserviceshavebeenrenderedorsuppliesmade. However,itmaybecomenecessary

tomakeadvancepaymentsinthefollowingtypeofcases:

(i) Advancepaymentdemandedbyfirmsholdingmaintenancecontractsforservicingof

AirConditioners,computers,othercostlyequipment,etc.

(ii) Advancepaymentdemandedbyfirmsagainstfabricationcontracts,turnkeycontracts

etc.

Suchadvancepaymentsshouldnotexceedthefollowinglimits:

(i) Thirtypercentofthecontractvaluetoprivatefirms;

(ii) fortyper centof the contract value to a StateorCentralGovernment agencyor a

PublicSectorUndertaking;

(iii) incaseofmaintenancecontract,theamountshouldnotexceedtheamountpayable

forsixmonthsunderthecontract

13. PLACEMENTOFSUPPLYORDER

Afterobtainingnecessaryapproval/financial sanctionof the competent authority(as

perdelegationofpowersdocument)supplyordershouldbeplacedwiththerecommended

firmgiving

reference

Number

and

date

of

their

quotation.

It

should

be

clearly

mentioned

in

thesupplyorderthattheitemsshouldbesuppliedstrictlyonthetermsandconditionsofthe

tender/limited tender. Some standard terms and conditions for limited/open tender are

giveninAnnexureI.

14. Bankguaranteessubmittedbythetenderers/suppliersasEMD/performancesecurity

needtobeverifiedfromtheissuingbankbeforeacceptance.

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15. InOpen/Advertised tenderwhich relate toa turnkeycontractorcontractof special

naturetopurchaseofsophisticatedandcostlyequipmentasuitableprovisionistobekeptin

thetender

enquiry

document

for

prebid

conference

for

clarifying

issues

and

clearing

doubts,

if any, about the specification and other allied technical details of plant, equipment and

machinery projected in the tender document. The date, time and place of the prebid

conferenceshouldbeindicatedinthetenderenquirydocumentforinformationofinterested

tenderers.Thisdateshouldbesufficientlyaheadoftenderopeningdate.

16. There should be suitable provision in the terms and conditions of the tender for

claimingliquidateddamagesofappropriateamountfromthesuppliertotakecareofdelays

in supplies and performance, forwhich the supplier is responsible. Depending upon the

nature and make of the goods to be ordered and the urgency of requirement, specific

percentagenormally0.5%perweekofthedeliveredpriceofthedelayedgoods/servicesisto

beincorporatedinthecontractterms.

17. Purchase file shouldbeproperlypagenumbered andpapers shouldbe arranged in

chronologicalorder(datewise).

18. Everyexpenditureshouldbe incurredonlywhenthesamehasbeensanctionedbya

competentauthority.

A

sanction

order

will

have

to

be

attached

with

final

voucher

indicating

the amount in words and figures, Head of Account, financial year and purpose. The

competentauthority for sanctionwillbe asper the approveddelegationdocumentof the

Institutealreadycirculated.


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ANNEXUREI

SOMESTANDARDTERMSANDCONDITIONSFORLIMITED/OPENTENDER.

1. Contentsofbiddingdocument Allterms,conditions,stipulationsandinformationto

be incorporated in thebiddingdocument are tobe shown in the appropriate chapters as

below:

Chapter1:InstructionstoBidders.

Chapter2:ConditionsofContract.

Chapter3:ScheduleofRequirements.

Chapter4:SpecificationsandalliedTechnicaldetails.

Chapter5:PriceSchedule(tobeutilizedbythebiddersforquotingtheirprices)

Chapter6:Contract/Agreementform,ifapplicable.

Chapter7:OtherStandardForms,ifany,tobeutilizedbythepurchaserandthebidders.

2. The text of the bidding document should be self contained and comprehensive

without any ambiguities. All essential information, which a bidder needs for sending

responsivebid,shouldbeclearlyspeltoutinthebiddingdocumentinsimplelanguage.

3. Thebiddingdocumentshouldcontainthecriteriaforeligibilityandqualificationstobe

metoutby thebidders suchasminimum levelofexperience,pastperformance.Technical

capability,manufacturingfacilitiesandfinancialpositionetc.

4. Thebiddingdocument shouldalso contain theprocedureaswellasdate, timeand

placeforsendingthebids;date,timeandplaceofopeningthebids

5. Suitable provision for settlement of disputes, if any, emanating from the resultant

contract,shouldbekeptinthebiddingdocument.

6. the bidding document should indicate clearly that the resultant contract will be

interpretedunderIndianLaws.

7.

The

specifications

of

the

required

goods

should

be

clearly

stated

without

any

ambiguity so that the prospective bidders can sendmeaningful bids. In order to attract

sufficientnumberofbidders,thespecificationsshouldbebroadbasedtotheextentfeasible.

Efforts should be made to use standard specifications which are widely known to the

industry.

8. Bidders shouldnotbepermitted to alterormodify theirbids afterexpiryof the

deadlineforreceiptofbids.

9. Therequirementofbidsecurity(EMD)withthetenderandperformancesecurityafter

placingtheorder/contractmaybeclearlyspeltinthetender. Incaseoftwobidsystemthe

requirements/documentsto

be

enclosed

in

technical

and

financial

bid

may

be

specified.

10. The provision for claiming liquidated damages in case of delay in supplies and

performancemayalsobemadeinthetenderdocument.

11. The termsofdelivery indicating the deliverypoint fromwhere thepurchaser is to

receive/collect the goodsmay be specified and it can have direct bearing on the quoted

prices.

12. The clauseofinsuranceofgoodsagainstlossordamageincidentaltomanufactureor

acquisition,transportation,

storage

and

delivery

may

be

mentioned

in

the

tender.

Guidelines for Purchase

Documents

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