Rule 196 - Outsourcing Services | KartavyaDesk
Original Rule Text
B. OUTSOURCING OF SERVICES Rule 197 "Non-Consulting Service" means any subject matter of procurement (which as distinguished from 'Consultancy Services'), involve physical, measurable deliverables/ outcomes, where performance standards can be clearly identified and consistently applied, other than goods or works, except those incidental or consequential to the service, and includes maintenance, hiring of vehicle, outsourcing of building facilities management, security, photocopier service, janitor, office errand services, drilling, aerial photography, satellite imagery, mapping etc.
What This Means
Rule 196 of the General Financial Rules (GFR), 2017, defines 'Non-Consulting Services' in the context of outsourcing. Essentially, it covers services that are not about providing expert advice or consultancy. Instead, these are services where you can clearly define what you want, measure the results, and consistently apply performance standards. Think of it as hiring someone to do a specific task with tangible outcomes, rather than seeking expert opinions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Defines 'Non-Consulting Services' for outsourcing purposes.
- •Focuses on services with physical, measurable deliverables.
- •Performance standards must be clearly identifiable and consistently applied.
- •Excludes goods and works (except those directly related to the service).
- •Examples include maintenance, vehicle hiring, security, and office support services.
Practical Example
The Department of Rural Development needs to maintain its office building. Instead of hiring permanent staff, they decide to outsource the building facilities management. According to Rule 196, this falls under 'Non-Consulting Services' because the department can clearly define the scope of work (cleaning, repairs, security), measure the performance (cleanliness levels, security incidents), and consistently apply standards. The contract with 'Shanti Facilities Pvt. Ltd.' for ₹5,00,000 per year specifies these deliverables, ensuring accountability and adherence to GFR guidelines. Similarly, if the department outsources vehicle hiring for official travel, it's a non-consulting service because the department can define the type of vehicle, mileage, and driver availability, and measure the performance based on these parameters.
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 'Consulting Services' and 'Non-Consulting Services'?▼
Does Rule 196 apply to the purchase of goods?▼
What are some examples of 'Non-Consulting Services'?▼
Why is it important to clearly define performance standards when outsourcing 'Non-Consulting Services'?▼
Where can I find the full text of Rule 196?▼
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 196 of GFR 2017, which characteristic is MOST crucial for a service to be classified as a 'Non-Consulting Service'?
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