Procurement Procedure and Preparation of Procurement Plan

27th Review Meeting of State FCs- Bhubaneswar (28th-30th October, 2010)

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PROCUREMENT

• Strictly follow procurement procedure prescribed in Chapter IX of the revised Manual on FM&P.

• Manual provisions mandatory for all procurements.

• Follow State's financial ceilings except when not prescribed by MHRD.

• MHRD prescribed ceiling on 17-09-2008

• MHRD’s ceilings extended up to 30-9-2012 vide letter dated 2-7-2010.

• Shall prevail on State ceilings.

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Main Considerations

Economy

Efficiency

Equal Opportuni

ty

Transparency

PROCUREMENTPROCUREMENT

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PROCUREMENT

• Identification of Needs.• Requisition from users. • Exists specific budget provision.• Assessment of bulk requirement at the beginning of

the financial year.• Computer, Equipment, furniture, books etc in

economic lots as per annual need.• All purchases be made to the best advantage after

comparison of competitive prices.

Points to be kept in view Points to be kept in view

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PROCUREMENT

• Strictly follow the levels of procurement provided in Para 112 of FM&P

School/Community/ KGBV

CRC / BRC

District

State

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School/KGBV level All civil works, except buildings for BRCs, SIEMAT,

Hostels and KGBV. Furniture School library Teaching Learning Material School grant. Maintenance grant.

Teaching and Learning EquipmentREMSLearning Enhancement Programme (LEP).Items required for KGBV.Uniform

EGS/AIE related items TLM, Contingency etc.

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CRC/BRC level

Civil works construction of hostel and

KGBV buildings. Furniture/equipment/computer etc. Office contingencies Teaching Learning Material Teacher Training Community Training Civil works for construction of BRC/CRC. Printing work REMS

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District level

Office equipment for DPO Office furniture for DPO Textbooks/other books/supplementary materials. Computers and accessories. Aids and appliances for CWSN Office contingencies Hiring of vehicles Maintenance of equipment and vehicles District level training and workshops Printing work REMS ECCE Kit Educational Kits for girls Learning Enhancement Programme (LEP).

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State level Textbooks Computers and its accessories Office equipment for SPO Office furniture for SPO Equipment for distance education Aids and appliances for CWSN Office contingencies Hiring of vehicles Maintenance of equipment and vehicles State level training and workshops Printing work Engagement of consultancy firms (service contract) Engagement of Auditors for external and internal

audit Engagement of experts/resource persons Engagement of NGOs REMS Learning Enhancement Programme (LEP).

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PROCUREMENT

• Prepare the Procurement Plan every year and upload in SSA’s website as envisaged in Para 113 of the Manual.

• Strictly follow financial ceiling prescribed for each method.

• Urged the States on 9-6-2010 to prepare the annual procurement plan for 2010-11 and upload the same in the web site.

• States need to revise the plan on the basis of supplementary plan approved by PAB.

• Most of the States yet to prepare the plan. Accord priority.

• Linkage of all procurements with plan will be looked in audits, post review and concurrent review.

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1. Open Tender (Para 115-117 of the Manual)

2. Limited Tender (Para 118 of the Manual)

3. Single Tender (Para 119 of the Manual)

4. Procurement without tender / quotation (Para 120 of

the Manual)

5. Procurement through communities (Para 121 of

the Manual)

Method of Procurement

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Financial ceiling for each contract

Category Open Tender Limited Tender

Single Tender

Community

Goods >50,000

<3000,000

< 50,000 <30,000

Works >40,000

<300,000

<50,000 <40,000 <40,000

Text books Upto 1 million <500.000

SIEMAT Upto 800,000

Information Technology equipment

>50,000 <4 million

<50,000

Books, Teaching materials school facility improvement, hiring of vehicles of equipment

<30,000

Service Contract <200,000

• Any contract in excess of the maximum limit indicated above shall not be procured using SSA funds.

(In US $ equivalent)

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OPEN TENDER Items covered: Civil works construction of BRC, Hostel,

KGBV, SIEMAT and goods. Steps

Preparation of tender documents Notification / Advertisement; Issue of tender documents; Submission of tender documents; Public opening of tender; Evaluation; Selection of lowest evaluated responsive tender

based on post qualification; Negotiation with L-1 (if necessary) Contract award; and Contract performance

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Prescribe bidding documents covering :

Documents user friendly, self contained, comprehensive, unambiguous and relevant to the objective of purchase.

Schedule of requirements Bid form and price schedule Technical specifications Post qualification criteria Validity period Earnest money Signing of bids Pre-bid conference Submission of bids Opening of bids Evaluation criteria

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Negotiation with L1 Award of contract Signing of agreement/contract Security deposit Retention money Payment terms Liquidated damages

Repeat Orders Quantity as per State procedure

Place order within one month from the date of last supply

Prices have since not reduced

Purchases not made on urgent basis

Rejection of all bids Lack of competition

Tenders not substantially responsive

Obtain the approval of competent authority

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LIMITED TENDER

Items covered: goods including books, uniforms teaching learning materials, school equipment, hiring of vehicles, and operation and maintenance of equipment

Invitation for quotations – Based on comparing price quotations obtained from

several suppliers, usually at least 3 to ensure competitive prices.

Issue a letter to the supplier to furnish the quotations for the required goods/equipment.

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LIMITED TENDER

Invitation for quotations – No need of publication of notification in the

newspaper/website. Issue the request letters to suppliers on the

approved list. The request letter should indicate

description, specifications and quantity of the goods as well as desired delivery time and place.

Only one quotation by each supplier.

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LIMITED TENDER

Bid Price Quote for the full quantity as described in

the invitation letter. Corrections, if any, made by crossing out,

dated initialing and re-writing. Include all duties, taxes and other levies

payable by the Vendor/Supplier in the total price.

The rates quoted by the Vendor/Supplier be fixed for the duration of the contract and not subject to adjustment on any account.

The prices are quoted in Indian Rupee.

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LIMITED TENDER

Steps Identifying items; Laying down specifications; Estimating total numbers and costs of items; Need not notify in newspaper/website Identifying likely agencies borne on the approved list of

contractors/ suppliers; (minimum 3, 8-10 for more competitive rates)

Obtaining approvals of competent authority; Issuing letters of invitation;

Processing quotations received;

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Obtaining orders of competent authority for placing orders for supply;

Issuing letters placing orders for supply and delivery period;

Quoted price shall include all duties, taxes and other levies;

Rates quoted be fixed and not subject to adjustment;

Ensuring inspection; Ensuring timely supply: and Making payments after delivery in satisfactory

condition.

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SINGLE TENDER Followed in the case of

articles specifically certified as of propriety nature; or manufactured by a particular firm; goods including books; teaching materials; school grant; hiring of vehicles; and operation and maintenance of equipment etc

Appropriate for Extension of existing contracts Standard equipment/spare parts for existing equipments

from original supplier. Items obtainable from one source Early delivery In exceptional cases such as natural disaster. Rate contracts of DGS & D and Rate contracts of State

Governments are appropriate method under single tender system.

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WITHOUT TENDER / QUOTATION

Procurement of goods or group of goods estimated to cost the equivalent of the ceiling of State Govt.

Issue suitable guidelines by the SIS

THROUGH COMMUNITIES

Construction of all civil works except, BRC, Hostel, KGBV and SIEMAT

BRC construction if the community is technically capable

Purchase of materials as per ISI certification, if available;

SPD may provide simple procurement guidelines

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Identify the committee locally operating in the area. Keep the following points in view:

Active involvement of community in planning and implementation;

Who will procure the materials or goods used in works;

Goods / works have to be executed as per approved plans and specifications

The name and designation of the Engineer for technical supervision and certification.

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Suggested advance payments based on the certificate issued by the Supervising Engineer

Advance (mobilisation advanceupon start up of the work andon reaching lintel level) : 75% of total cost

Plastering and completion of work : 25% of total cost

School toilet and other repair works

Advance (mobilisation advance upon start up of the work) cost : 75% of total

Plastering and completion of work cost : 25% of total

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Procurement of major items

Textbooks – Single Tender (Textbooks Corporation, NCERT etc) and Open Tender

IT Equipment – Limited Tender (State approved vendors)

State Electronic Corporation/IT Deptt/other State agencies provided they follow State procedure and Manual provisions

Open Tender and e-procurement

Printing work – Rate Contract approved by State Government, Limited Tender and Open Tender

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Service Contract

Preparation of Terms of Reference Preparation of Cost Estimate and Budget Advertising Preparation of short list of consultants Receipt of proposals Formation of Evaluation Committee Evaluation of Technical and Financial proposals Final discussions including negotiations and

award of the contract

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Non-Government Organizations

Preparation of Terms of Reference Advertising

Formation of Evaluation Committee Selection of NGOs Approval by Grant-in-Aid Committee

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Post Review by Government of India

Mis-procurement

Complaint Handling Mechanism

PROCUREMENT

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