Para 3.4 — CONSULT_MANUAL

3.4 Integrity Pact (IP) 1. The Pre-bid Integrity Pact is a tool to help governments, businesses, and civil society to fight corruption in public contracting. It binds both buyers and sellers to ethical conduct and transparency in all activities from pre-selection of bidders, bidding and contracting, implementation, completion and operation related to the contract. This removes insecurity of Bidders, that while they themselves may abjure Bribery, but their competitors may resort to it and win contract by unfair means.

Chapter 3: Participation of Bidders and Governance Issues 2. Ministries/ Departments and their attached/ subordinate offices (including autonomous bodies) should incorporate Integrity Pact29 in the procurements/ contracts of the nature and of a threshold value, decided by the Ministries/ Departments with the approval of the Minister in charge. As guidance, the threshold should cover bulk (80-90% - eighty to ninety percent by value) of its annual procurement expenditure. The format of the Integrity Pact is included in Annexure 18. Ministries/ Departments including their attached/ sub-ordinate offices and CPSEs may use this format of Integrity Pact, with the suitable changes specific to the situations in which pact is to be used.

3. CVC issued a revised Standard Operating procedure30 and has further stated31 that in view of the increasing procurement activities of Public Sector Banks (PSBs), Public Sector Insurance Companies (PSICs) and Public Sector Financial Institutions (FIs) shall also adopt and implement the suggested format of Integrity Pact. In the case of sub-contractors, the IP shall be a tri-partite arrangement to be signed by the organization, the contractor, and the subcontractor. Please refer to Annex-2 of Annexure 18 for details.