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Para 8.1.5 - CMC Setup | KartavyaDesk

Consultancy Manual

Original Rule Text

5. CMC may be constituted with the approval of one level higher than the competent authority. It is advantageous for organisations doing procurements regularly to have prenominated (by designation) CMC and lay down their powers, jurisdiction, composition, and corresponding Competent Authority for various categories of procurement and different threshold values of procurements. Procuring Entity should lay down a Schedule of Procurement Powers (SoPP) detailing such thresholds. It can also lay down the powers, jurisdiction, and composition of various levels of Tender Committee and corresponding Competent Authority for various categories of procurement and different threshold values of procurements. A suggested format for SoPP is in Annexure 2; however, the exact values of thresholds may have to be decided by the Procuring Entity in conformity with DFPR (Annexure 1).

What This Means

Para 8.1.5 of the Manual for Procurement of Consultancy Services deals with the constitution and powers of the Consultancy Management Committee (CMC). Essentially, it says that if your organization regularly hires consultants, it's a good idea to have a pre-approved CMC structure already in place. This means defining who will be on the committee (by their job title, not necessarily by name), what they're responsible for, and who has the authority to approve their decisions. This pre-defined structure helps streamline the procurement process and avoid delays. The approval for setting up this pre-nominated CMC needs to be one level higher than the competent authority.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Organizations that frequently procure consultancy services should consider pre-nominating a Consultancy Management Committee (CMC).
  • •The CMC's composition, powers, jurisdiction, and the corresponding Competent Authority should be clearly defined in a Schedule of Procurement Powers (SoPP).
  • •The SoPP should detail threshold values for different categories of procurement.
  • •The Procuring Entity must adhere to the Delegation of Financial Powers Rules (DFPR) when determining threshold values.
  • •The CMC needs to be approved by one level higher than the competent authority.

Practical Example

The Ministry of Rural Development frequently hires consultants for various projects. To streamline the process, the Joint Secretary (Rural Development) proposes a pre-nominated CMC structure. This structure includes the Director (Finance), Under Secretary (Projects), and a technical expert from the relevant department. The Joint Secretary also drafts a Schedule of Procurement Powers (SoPP) outlining that the CMC can approve consultancy contracts up to ₹50 lakhs, with contracts above that amount requiring approval from the Additional Secretary. This SoPP also defines the roles and responsibilities of each member of the CMC. The proposal for the pre-nominated CMC and the SoPP is then submitted to the Additional Secretary (Rural Development) for approval, as they are one level higher than the Joint Secretary.

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 a Consultancy Management Committee (CMC)?▼
A CMC is a committee responsible for managing the procurement process of consultancy services. It typically includes representatives from different departments within the organization.
What is a Schedule of Procurement Powers (SoPP)?▼
A SoPP is a document that outlines the financial powers delegated to different levels of authority within an organization for procurement purposes. It specifies the threshold values for different categories of procurement and who is authorized to approve them.
Who approves the constitution of a pre-nominated CMC?▼
The constitution of a pre-nominated CMC needs to be approved by an authority one level higher than the competent authority.
What is the Delegation of Financial Powers Rules (DFPR)?▼
The DFPR outlines the financial powers delegated to various government officials. Procuring entities must adhere to DFPR guidelines when setting threshold values in their SoPP.
Is it mandatory to have a pre-nominated CMC?▼
No, it's not mandatory. However, Para 8.1.5 suggests it's advantageous for organizations that regularly procure consultancy services as it streamlines the process.

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 8.1.5 of the Manual for Procurement of Consultancy Services, which of the following is a key advantage of pre-nominating a Consultancy Management Committee (CMC) for organizations that regularly procure consultancy services?

Related Rules

Para 8Manual for Procurement of Consultancy Services, 2025 - Para 8 - Chapter 10 - Annexure 18Para 9Manual for Procurement of Consultancy Services, 2025 - Para 9 - Chapter 10 - Annexure 18Para 1.10.2Manual for Procurement of Consultancy Services, 2025 - Para 1.10.2 - Chapter 1Para 1.11Manual for Procurement of Consultancy Services, 2025 - Para 1.11 - Chapter 1Para 1.13Manual for Procurement of Consultancy Services, 2025 - Para 1.13 - Chapter 1

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