Para 9.5 - Procurement Agents | KartavyaDesk
Original Rule Text
9.5 Procurement Consultants 1. Consultancy or Non-consultancy: a) Hiring of Procurement agents (PAs) can either be done as a Consultancy Service or Non-consultancy service, depending on the objectives and scope of assignment. b) Consultants: If the role of Procurement Agents primarily involves intellectual analysis, strategic planning, spend analysis, cost control, and advisory functions, it would be appropriate to hire them as Consultancy Services i.e. when they are asked to design/ implement new system or improve value for money or develop strategic procurement or carry out market building/ sourcing etc, where quality weightage of more than 30% is called for. c) Non-consultancy: On the other hand, if their responsibilities are only outsourcing of routine procedures without intellectual decision making, classifying them as outsourcing of Non-Consultancy Services would be suitable, i.e. when they only operate the existing procedures and crucial decisions are made by the client himself, where quality weightage can be 30% or less. In such a case please also refer to para 4.5.3 above.
What This Means
Para 9.5 of the Manual for Procurement of Consultancy Services clarifies how to classify the hiring of Procurement Agents (PAs). It distinguishes between hiring them as 'Consultancy Services' or 'Non-Consultancy Services' based on the nature of their work. The key factor is the level of intellectual input and decision-making involved. This rule is important for government departments and agencies when they need to engage external experts to assist with procurement processes. It ensures that the correct procurement procedures are followed depending on the type of service being acquired.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Procurement Agents (PAs) can be hired as either Consultancy or Non-Consultancy Services.
- •Consultancy Services are appropriate when the PA's role involves intellectual analysis, strategic planning, and advisory functions (quality weightage > 30%).
- •Non-Consultancy Services are suitable when the PA's role is limited to routine procedures without significant intellectual decision-making (quality weightage <= 30%).
- •The classification impacts the procurement process and evaluation criteria.
- •Refer to Para 4.5.3 for additional guidance when classifying PAs as Non-Consultancy Services.
Practical Example
The Ministry of Textiles wants to improve its procurement process for raw materials. They are considering hiring a Procurement Agent. If the Ministry wants the agent, 'Strategix Solutions', to analyze their current spending, develop a new strategic procurement plan, and identify cost-saving opportunities, they should classify the engagement as a Consultancy Service. This is because Strategix Solutions will be providing intellectual analysis and strategic advice. On the other hand, if the Ministry only wants the agent, 'ProcureEasy', to manage the day-to-day ordering of materials based on pre-defined guidelines and approved vendor lists, without any strategic input, it would be classified as a Non-Consultancy Service. The quality weightage for Strategix Solutions would be above 30%, while for ProcureEasy it would be 30% or less.
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 main difference between hiring a Procurement Agent as a Consultancy Service versus a Non-Consultancy Service?▼
How does the quality weightage affect the classification of Procurement Agents?▼
Where can I find more information on Non-Consultancy Services?▼
Who is responsible for determining whether a Procurement Agent should be classified as a Consultancy or Non-Consultancy Service?▼
What are some examples of tasks that would fall under Consultancy Services for Procurement Agents?▼
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 9.5 of the Manual for Procurement of Consultancy Services, when should the hiring of Procurement Agents (PAs) be classified as Consultancy Services?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for Consultancy Manual and other government rules