Para 3.4 - Integrity Pact | KartavyaDesk
Original Rule Text
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.
What This Means
Para 3.4 of the Manual for Procurement of Consultancy Services focuses on the 'Integrity Pact'. Think of it as a promise of honesty and transparency in large government contracts. This rule says that government departments (Ministries, attached offices, autonomous bodies, etc.) should use an Integrity Pact for significant procurements. The idea is to prevent corruption and ensure fair dealing in contracts above a certain value. Each department decides this value, but it should be high enough to cover most (80-90%) of their annual spending on procurement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Ministries/Departments must incorporate Integrity Pact in procurements above a certain threshold.
- •The threshold value is decided by each Ministry/Department with Ministerial approval.
- •The threshold should cover 80-90% of the department's annual procurement expenditure.
- •Annexure 18 provides a standard format for the Integrity Pact, which can be adapted.
- •CPSEs (Central Public Sector Enterprises) are also covered by this rule.
Practical Example
The Ministry of Jal Shakti is planning a large consultancy project for river cleaning worth ₹50 Crore. The Minister has approved a threshold of ₹10 Crore for Integrity Pacts. Since the project value exceeds this threshold, the Ministry must include an Integrity Pact in the tender documents. This pact requires both the Ministry officials and the bidding consultancy firms to pledge that they will act with integrity and transparency throughout the procurement process. Any violation of the pact can lead to penalties, including disqualification from the bidding process or termination of the contract.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is an Integrity Pact?▼
Who decides the threshold value for implementing the Integrity Pact?▼
Where can I find the format for the Integrity Pact?▼
What happens if a bidder violates the Integrity Pact?▼
Does this rule apply to all government organizations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 3.4 of the Manual for Procurement of Consultancy Services, which of the following entities is required to incorporate an Integrity Pact in their procurements?
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