Transcript Welcome to the Session on Financial Management and Procurement

Procurement Procedure
and Preparation of
Procurement Plan
26th Review Meeting of
State FCs- Chandigarh
(6 August 2010)
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.
2
PROCUREMENT
Main
Considerations
Economy
Efficiency
Equal
Opportunity
Transparency
3
PROCUREMENT
• Strictly follow the levels of procurement provided in Para 112
of FM&P
 School/Community/ KGBV
 CRC / BRC
 District
 State
4
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 Equipment
 REMS
 Learning Enhancement Programme (LEP).
 Items required for KGBV.
EGS/AIE related items

TLM, Contingency etc.
5
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
6
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).
7
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).
8
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.
• Except U.P, not received response from other States.
• States to prepare the plan on priority
• Linkage of all procurements with plan will be looked in audits,
post review and concurrent review.
9
Method of Procurement
1.
2.
3.
4.
Open Tender (Para 115-117 of the Manual)
Limited Tender (Para 118 of the Manual)
Single Tender (Para 119 of the Manual)
Procurement without tender / quotation (Para 120 of
the Manual)
5. Procurement through communities (Para 121 of
the Manual)
10
Financial ceiling for each contract
(In US $ equivalent)
Category
Open Tender
Limited
Tender
Single
Tender
Goods
>50,000
<3000,000
< 50,000
<30,000
Works
>40,000
<300,000
<50,000
<40,000
Text books
Upto 1 million
SIEMAT
Upto 800,000
Information Technology
equipment
>50,000
million
<4
<40,000
<500.000
<50,000
Books, Teaching materials school
facility improvement, hiring of
vehicles of equipment
Service Contract
Community
<30,000
<200,000
• Any contract in excess of the maximum limit indicated above shall not 11be
procured using SSA funds.
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
12
 Contract performance

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
13
Evaluation criteria
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
14

Obtain the approval of competent authority
LIMITED TENDER
Items covered:
 goods including books,
 teaching learning materials,
 school equipment,
 hiring of vehicles, and
 operation and maintenance of equipment
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;
15

Issuing letters of invitation;

Processing quotations received;

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.
16
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 17
tender system.


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
18

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.
19

Suggested advance payments based on the
certificate issued by the Supervising Engineer
Advance (mobilisation advance
upon start up of the work and
on 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
20
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
21
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
22
Non-Government Organizations





Preparation of Terms of Reference
Advertising
Formation of Evaluation Committee
Selection of NGOs
Approval by Grant-in-Aid Committee
23
PROCUREMENT



Post Review by Government of India
Mis-procurement
Complaint Handling Mechanism
24
25