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Rule 166 - Specific Brand Procurement | KartavyaDesk

GFR 2017

Original Rule Text

(i) The indented goods are manufactured by M/s ……………………….. (ii) No other make or model is acceptable for the following reasons: ……………………………………………… (iii) Concurrence of finance wing to the proposal vide: ……………………………………….. (iv) Approval of the competent authority vide: (Signature with date and designation of the indenting officer) Rule 167 Electronic Reverse Auction (i) Electronic Reverse Auction means an online real-time purchasing technique utilised by the procuring entity to select the successful bid, which involves presentation by bidders of successively more favourable bids during a scheduled period of time and automatic evaluation of bids; (ii) A procuring entity may choose to procure a subject matter of procurement by the electronic reverse auction method, if: (a) It is feasible for the procuring entity to formulate a detailed description of the subject matter of the procurement; (b) There is a competitive market of bidders anticipated to be qualified

What This Means

Rule 166 of the General Financial Rules (GFR), 2017, outlines the specific conditions that must be met when a government department wants to purchase goods from a particular manufacturer, essentially specifying a brand or model. This rule is invoked when there's a valid reason why only a specific product will suffice, and no other alternative is acceptable. It's not meant to be a loophole for favoring specific vendors, but rather a process to ensure the government gets the exact product needed for a specific purpose when no substitute exists. The rule affects all government departments and agencies involved in procurement, and it requires proper justification, financial concurrence, and approval from 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

  • •Applies when a specific manufacturer/model is required for procurement.
  • •Requires clear justification for why no other make or model is acceptable.
  • •Needs concurrence from the finance wing.
  • •Requires approval from the competent authority.
  • •Ensures transparency and accountability in procurement decisions.

Practical Example

The Department of Space Research (DSR) needs to purchase a highly specialized sensor for a satellite mission. After extensive research, they determine that only the 'SpectraView 9000' sensor manufactured by 'Cosmic Instruments' meets the stringent technical requirements. The DSR's indenting officer, Mr. Sharma, prepares a detailed justification explaining why the SpectraView 9000 is essential, citing its unique spectral resolution and radiation resistance. He includes the manufacturer's name (Cosmic Instruments), the model (SpectraView 9000), and the technical reasons for its necessity. After obtaining concurrence from the DSR's finance wing, which confirms the budget allocation of ₹50,00,000, Mr. Sharma secures approval from the Director of DSR, documenting all steps as per Rule 166.

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

Frequently Asked Questions

What happens if the justification for a specific brand is deemed insufficient?▼
The procurement request will be rejected, and the department will need to explore alternative solutions or provide a more compelling justification.
Does Rule 166 allow for sole-source procurement?▼
Rule 166 facilitates procurement from a specific manufacturer when a specific product is essential, but it doesn't automatically imply sole-source procurement. The justification must be technically sound and not based on favoritism.
What is the role of the finance wing in this process?▼
The finance wing reviews the proposal to ensure that the expenditure is justified, within budget, and aligns with financial regulations. Their concurrence is a mandatory step before approval.
Is there a specific format for the justification required under Rule 166?▼
While there isn't a rigidly prescribed format, the justification must clearly state the manufacturer and model, and provide detailed technical reasons why no other alternative is acceptable. It should be comprehensive and supported by evidence.
How does Rule 166 relate to promoting competition in government procurement?▼
Rule 166 is an exception to the general principle of promoting competition. It is invoked only when there is a demonstrable and justifiable need for a specific product from a specific manufacturer, ensuring that it is not used to circumvent competitive bidding processes unnecessarily.

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 Rule 166 of GFR 2017, what is a mandatory requirement when a government department intends to procure goods manufactured by a specific company, stating that no other make or model is acceptable?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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