General Financial Rules, 2017 (Part 3 of 4) |
Note: Keeping the significance and magnitude of the topic (i.e. GFR, 2017) we have covered the topics (including objectives and one words) in four parts. Students are advised to go through all the 4 posts related to GFR in order to achieve optimum results. All the topics are written by topic experts, hence an appreciation from the students will give them encouragement to bring more such quality exams oriented topics. |
Procurement of Goods |
Important Points concerning Procurement of Goods: 1. An authority competent to incur expenditure may sanction the purchase of goods required for use in public service following provisions given in the: Delegation of Financial Power Rules. 2. The terms rate contract pertains to DGS&D (Directorate General of Supplies and Disposals) 3. It is mandatory for Ministries/Departments to receive all bids through e-procurement portals in respect of all procurements. These instructions will not apply to procurements made by Ministries/ Departments through DGS&D Rate. 4. The Ministries/Departments shall project their Annual Procurement Plan of goods and services on the GeM portal within 30 days of Budget approval. 5. Purchase of goods without inviting quotations or bids based on a certificate to be recorded by the competent authority up to the value of Rs. 50k (As per latest amendments) 6. It is mandatory for all Ministries/Departments of the Central Government, their attached and Subordinate Offices and Autonomous/Statutory Bodies to publish their tender enquiries, corrigenda thereon and details of bid awards on the Central Public Procurement Portal. 7. Ordinarily, from the date of publication of the tender notice or availability of the bidding documents for sale, whichever is later the minimum time to be allowed for submission of bids should be 2 weeks. 8. Rejection of bids is justified: When effective competition is lacking. 9. Where the bids from abroad are also to be obtained, the minimum period should be kept 4 weeks for both domestic and foreign bidders. 10. Advance payments for procurement of goods and services may be made in cases of advance payment demanded: by firms holding maintenance contracts for servicing of Air-conditioners, computers, other costly equipment, etc. by firms against fabrication contracts, turn-key contracts etc. 11. In the case of a maintenance contract, the amount of advance should not exceed the amount payable for 6 months under the contract. 12. Ministries or Departments of the Central Government may relax the ceilings (including percentage laid down for advance payment for private firms) in consultation with their Financial Advisers. 13. In case a purchase Committee is constituted to purchase or recommend the procurement, no member of the purchase Committee should be reporting directly to any other member of such Committee in cases the estimated value of procurement exceeds Rs. 25 Lakhs 14. Technical bids should be analysed and evaluated by a: Consultancy Evaluation Committee (CEC) constituted by the Ministry or Department. 15. Depending on the nature of goods up to the extent of what period the supplier will be registered?: 1 to 3 years |
Delegation of Financial Power rules | |
Rule (DFPR) | Description |
Rule 8 | Object Heads of Accounts of the Union prescribed. |
Rule 21 | The powers of various authorities, the conditions under which such powers should be exercised, and the conditions procedure prescribed about various classes of contracts and assurances of property. |
References to Constitution of India | |
Article | Description |
112 to 116 | Contain Provisions for preparation, formation and submission of budget to the parliament. |
266 (1) | Consolidated Fund of India (There are two division in CFI) (There are 5 Parts in CFI) |
266(2) | Public Account (Debt, Remittances) |
267(1) | Contingency Fund of India |
280 | Finance Commission |
284 | All money (other than revenue) deposited with any officer shall be paid into public account. |
292 | Limits on Government Guarantee |
77 (3) | The Government of India (Allocation of Business) Rule, 1961 & The Government of India (Transaction of Business) Rules, 1961 are issued by the President for the convenient transaction of business of the government under Article 77 (3) of the constitution. |
Type of Methods of Obtaining Bids | Description |
Limited Tender Enquiry (GFR 162) | 1) More than Rs. 5 Lakhs and Up to 50 Lakhs 2) The number of suppliers firms in Limited Tender Enquiry should be more than three (at least 4) 3) Bid security 2 to 5 percent is required to be furnished by bidders in the case of Limited or Advertised tender enquiry. 4) This method is followed for inviting bids if the estimated value of non-consulting service is less than Rs. 10 Lakhs. 5) Copies of the bidding documents should be sent directly by speed post/ registered post/courier/email to firms which are borne on the list of registered suppliers for the goods in question under LTE. |
Advertised Tender Enquiry | 1) Rs. 25 Lakhs and above 2) Bid security 2 to 5 percent is required to be furnished by bidders in the case of Limited or Advertised tender enquiry. |
Two bid system or Two stage bidding (GFR 164) | 1) For purchase of high value plant, machinery, etc. of a complex and technical nature. Two bids are called i.e. Financial and Technical Bids. 2)Technical Bid should be opened first. |
Single Tender Enquiry (GFR 166) | 1) When required goods are manufactured by a particular firm. 2) In case of emergency when the required goods are necessarily to be purchased from a particular source. 3) For standardization of machinery or spare parts to be compatible with the existing sets of equipment resulting in purchase only from a selected firm. 4) Proprietary Article Certificate is applicable in Single Tender Enquiry. |
Electronics Reverse Auction (GFR 167) | 1) An online real-time purchasing technique utilised by the procuring entity to select the successful bid, which involves a presentation by bidders of successively more favourable bids during a scheduled period and automatic evaluation of bids is called Electronics Reverse Auction. 2) Effective competition through existing competitive markets is ensured. 3) The processing entity should have a detailed description of the subject matter of the procurement. 4) Criteria for selection are quantifiable and can be expressed in monetary units. |
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