Para 4.3 - Procurement Modes | KartavyaDesk
Original Rule Text
Chapter 4: Bidding Design for Consultancy Services ii) Global Tender Enquiry (GTE): Also referred to as International Competitive Bidding (ICB), this mode invites bids from international vendors to ensure global competition. There is a restriction on use of this mode below Rs 200 crores. b) Pre-qualification Modes: These modes of procurement are restricted to shortlisted pre-qualified bidders. The shortlisting is done transparently, based on qualification criteria to identify bidders who have the capability to perform the contract. Shortlisting itself is done through wide publicity akin to advertised tenders. i) Pre-Qualification Bidding Mode (PQB): In this mode, only those bidders who meet specific qualifications are invited to submit bids. ii) Approved Vendor Lists (AVL): Procurement is restricted to vendors who have been pre-approved and included on a long-term multi-use list based on their demonstrated ability to meet the required standards. (Please refer to Para 4.7 of the Manual for Procurement of Goods, Second Edition, 2024 for details on the AVL). c) Restricted Modes: In restricted modes, the bidding is limited to known and selected bidders, without the public advertisements seen in advertised modes. Unlike the Prequalification mode, the shortlisting or registration of bidders is based on less rigorous checks of capability and past experience, without relying on wide publicity or stringent qualification criteria. (Rule 162, GFR 2017): i) Limited Tender Enquiry (LTE): This mode invites bids from a select group of suppliers and is used for procurements up to Rs. 50 lakhs. (Please refer to Annexure 15) ii) Special Limited Tender Enquiry (SLTE): LTE type of process applicable for procurements above Rs. Fifty lakhs in exceptional circumstances, where limited competition is justified. d) Nomination Modes: These modes involve procurement from a single source, typically under special circumstances where competition is not feasible or necessary. (Rule 166 GFR 2017): i) Proprietary Article Certificate (PAC): This is used when procurement is required from a specific vendor due to the proprietary nature of the goods or services (say from OEMs). ii) Single Tender Enquiry (STE) without PAC: This allows procurement from a single source without a PAC under specific conditions. In case of Single Tender procurements: 1). a report relating to such awards on nomination basis shall be submitted every quarter to: • The Secretary, in case of Ministries/Departments. • The Board of Directors or equivalent managing body, in case of Public Sector Undertakings, Public Sector Banks, Insurance companies, etc; • The Chief Executive of the organisation where such a managing body is not in existence. 2). The audit committee or similar unit in the organisation may be required to check at least 10% of such cases. e) Shopping Modes: These are used for small-value procurements where formal tendering is not practical. (Rule 154, 155 GFR 2017):
What This Means
Para 4.3 of the Manual for Procurement of Consultancy Services outlines different ways government departments can find and hire consultants. It's like having different tools in a toolbox, each suited for a specific job. The rule categorizes these methods into modes like Global Tender Enquiry (inviting bids internationally), Pre-qualification Modes (choosing from a pre-approved list), Restricted Modes (inviting bids from a select group), Nomination Modes (hiring a single consultant), and Shopping Modes (for small, simple tasks). Each mode has its own rules about when it can be used and how much money can be spent.
For example, if the government needs a consultant for a huge project worth over 200 crores, they might use Global Tender Enquiry to get the best talent from around the world. But if it's a smaller project, they might use Limited Tender Enquiry, inviting bids from a few trusted suppliers. The rule also covers situations where there's only one consultant who can do the job, like when dealing with proprietary technology. In these cases, they can use Nomination Modes, but they need to justify why they didn't use a competitive process and report these instances regularly. This ensures transparency and accountability in government spending.
This rule affects all government employees involved in hiring consultants, from those writing the initial request to those approving the final contract. Understanding these different modes is crucial for ensuring that the government gets the best value for its money while following the rules and maintaining fairness.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Outlines various procurement modes for consultancy services: Global Tender Enquiry, Pre-qualification Modes, Restricted Modes, Nomination Modes, and Shopping Modes.
- •Each mode has specific conditions and limitations regarding its use, including monetary thresholds and justification requirements.
- •Global Tender Enquiry (GTE) is restricted for use below Rs 200 crores.
- •Nomination Modes (single-source procurement) require justification and regular reporting to higher authorities.
- •Restricted Modes like Limited Tender Enquiry (LTE) are for procurements up to Rs. 50 lakhs.
Practical Example
The Ministry of Urban Development needs to hire a consultant to design a new smart city project. The estimated cost of the consultancy is Rs. 40 lakhs. According to Para 4.3, they cannot use Global Tender Enquiry because the project value is below Rs. 200 crores. Instead, they decide to use Limited Tender Enquiry (LTE) because the value is below Rs. 50 lakhs. They invite bids from five pre-selected consulting firms known for their expertise in urban planning. After evaluating the bids, they award the contract to 'Smart Solutions Pvt. Ltd.' based on their technical proposal and competitive pricing. If, however, only 'Smart Solutions Pvt. Ltd.' possessed the unique expertise required, the Ministry could have used Single Tender Enquiry (STE), but would need to justify the decision and report it to the Secretary of the Ministry.
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 the difference between Limited Tender Enquiry (LTE) and Special Limited Tender Enquiry (SLTE)?▼
When can I use Nomination Modes like Proprietary Article Certificate (PAC)?▼
What are the reporting requirements for Single Tender Enquiries (STE)?▼
What is the purpose of Pre-Qualification Bidding Mode (PQB)?▼
Is there a limit on using Global Tender Enquiry (GTE)?▼
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 4.3 of the Manual for Procurement of Consultancy Services, what is the monetary restriction on using Global Tender Enquiry (GTE)?
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