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Rule 177 - Consulting Services Defined | KartavyaDesk

GFR 2017

Original Rule Text

Rule 177 "Consulting Service means any subject matter of procurement (which as distinguished from 'NonConsultancy Services' involves primarily non-physical projectspecific, intellectual and procedural processes where outcomes/ deliverables would vary from one consultant to another), other than goods or works, except those incidental or consequential to the service, and includes professional, intellectual, training and advisory services or any other service classified or declared as such by a procuring entity but does not include direct engagement of a retired Government servant.

What This Means

Rule 177 of the General Financial Rules (GFR), 2017, defines what constitutes a 'Consulting Service' for government procurement. Essentially, it covers services that primarily involve intellectual and procedural work, rather than physical goods or construction. The key is that the outcome of the service can vary depending on the consultant hired. Think of it as hiring someone for their expertise and advice, where their unique approach matters.

This rule is important because it helps government departments distinguish between hiring consultants for their specialized knowledge and simply purchasing goods or services. It clarifies that consulting services are about getting expert advice, training, or other intellectual support, where the specific consultant's skills and approach are crucial. However, it specifically excludes directly hiring retired government employees under this definition.

This rule affects all government departments and agencies involved in procurement. It guides them on how to classify different types of services and ensures that the appropriate procurement procedures are followed when hiring consultants. Understanding this rule is crucial for ensuring transparency and accountability in government spending.

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

Key Points

  • •Consulting Services involve primarily intellectual and procedural processes.
  • •Outcomes/deliverables of consulting services can vary from one consultant to another.
  • •Consulting Services include professional, intellectual, training, and advisory services.
  • •The rule excludes direct engagement of retired government servants.
  • •It helps distinguish between consulting services and non-consulting services (goods or works).

Practical Example

The Ministry of Rural Development needs expert advice on implementing a new rural employment scheme. They decide to hire a consulting firm to conduct a feasibility study and develop a detailed implementation plan. The firm, 'Gram Vikas Consultants,' is selected based on their expertise in rural development and their proposed methodology. The contract is valued at ₹50 lakhs. According to Rule 177, this falls under 'Consulting Service' because the ministry is seeking expert advice and a customized plan, and the outcome will depend on the specific firm's approach. If, instead, the ministry was purchasing computers for the scheme, that would *not* be a consulting service.

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 Consulting Services and Non-Consulting Services?▼
Consulting Services primarily involve intellectual and procedural processes, while Non-Consulting Services involve physical goods or works.
Does Rule 177 apply to hiring a retired government employee as a consultant?▼
No, Rule 177 specifically excludes the direct engagement of a retired government servant from the definition of 'Consulting Service'.
If a contract includes both goods and consulting services, how is it classified?▼
If the goods are incidental or consequential to the consulting service, it can still be classified as a consulting service. However, if the goods are the primary focus, it would likely be classified as a non-consulting service.
Why is it important to correctly classify a service as 'Consulting' or 'Non-Consulting'?▼
Correct classification determines the appropriate procurement procedures to be followed, ensuring transparency and compliance with GFR rules.
What are some examples of 'advisory services' that fall under Rule 177?▼
Examples include providing expert advice on policy formulation, financial management, project management, or legal matters.

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 177 of GFR 2017, which of the following is a key characteristic that distinguishes 'Consulting Services' from 'Non-Consultancy Services'?

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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