Para 1.1 - Procurement Overview | KartavyaDesk
Original Rule Text
1.1. Procurement Rules and Regulations; and this Manual 1. Various Ministries, Departments, attached and subordinate offices, local urban bodies, public sector enterprises, and other Government (including autonomous) bodies (hereinafter referred to as ‘Procuring Entities’) spend a sizeable amount of their budget on the Procurement of goods, works and services to fulfil their stated objectives, assigned duties/ obligations/ responsibilities/ functions, and activities in alignment with desired policy outcomes. 2. The Ministries / Departments have been delegated full powers to make their own arrangements for the procurement of goods and services that are not available on the government e-marketplace (GeM). These powers must be exercised as per the Delegation of Financial Power Rules and in conformity with the ‘Procurement Guidelines’ described below. Common use Goods and Services available on GeM are required to be procured mandatorily through GeM as per Rule 149 of GFR, 2017. 3. To ensure that these procurements are made by following a uniform, systematic, efficient, and cost-effective procedure and also to ensure fair and equitable treatment of suppliers, there are guidelines comprising a hierarchy of Statutory framework, Rules and Regulations, Manuals of Procurement and Procurement Documents as detailed in Annexure 1 of this Manual (hereinafter referred as ‘Procurement Guidelines’, please see Annexure 1). 4. At the apex of the Statutory framework governing public Procurement is Article 299 of the Constitution of India, which stipulates that contracts legally binding on the Government must be executed in writing by officers specifically authorised to do so. The Constitution also enshrines Fundamental Rights (In particular, Articles 14 – Right to Equality before Law and 19 (1) (g) – Right to practice any profession, or to carry on any occupation, trade, or Business) which have implications for Public Procurement. Further, the Indian Contract Act of 1872 and the Sale of Goods Act of 1930 are significant legislations governing contracts of sale/ purchase of goods in general. There are other mercantile laws (Arbitration and Conciliation Act, 1996; Mediation Act, 2023; Competition Act, 2002; Information Technology Act, 2000, etc.) that may be attracted in Public Procurement Transactions. 5. In the Central Government, there is no law exclusively governing public procurement. However, comprehensive Rules and Regulations in this regard are available in the General Financial Rules (GFR), 2017 (especially chapters 6 to 9); Delegation of Financial Powers Rules (DFPR); Government orders regarding purchase preference/ restrictions like Public Procurement (Preference to Make in India), Order 2017, facilities to Micro and Small Enterprises and Start-ups, Restrictions on Entities from a Class of Countries (Rule 144 (xi), GFR 2017) etc. 6. Without purporting to be a comprehensive compendium of all such ‘Procurement Guidelines,’ this Manual is intended to serve as a portal to enter this vast area and draw attention to basic norms and practices governing public Procurement.
What This Means
Para 1.1 of the Manual for Procurement of Goods, 2017, sets the stage for how the government buys things. It basically says that various government bodies, from ministries to local councils, spend a lot of money on buying goods, works, and services to do their jobs. To make sure this spending is done fairly, efficiently, and in a way that treats all suppliers equally, there are rules and guidelines to follow. These guidelines are a mix of laws, rules, and manuals, all designed to ensure a transparent and cost-effective procurement process.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Government entities spend significant amounts on procurement.
- •Procurement must be done according to established guidelines to ensure fairness and efficiency.
- •These guidelines include a hierarchy of rules, regulations, and manuals.
- •The Constitution of India and other laws like the Indian Contract Act provide the legal framework for procurement.
- •The General Financial Rules (GFR), 2017, and Delegation of Financial Powers Rules (DFPR) are key documents for central government procurement.
Practical Example
The Ministry of Education needs to purchase 5000 laptops for a new educational program. According to Para 1.1, they must follow the established procurement guidelines. This means checking if the laptops are available on GeM (Government e-Marketplace). If they are, they must purchase them through GeM as per GFR Rule 149. If not, they can make their own arrangements, but they must adhere to the Delegation of Financial Power Rules and the Procurement Guidelines outlined in Annexure 1 of the Manual. This ensures that the purchase is transparent, cost-effective, and fair to all potential suppliers.
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 purpose of Para 1.1 of the Procurement Manual?▼
Which government bodies are affected by these procurement rules?▼
What are the key legal documents governing public procurement in India?▼
What is GeM, and why is it important in procurement?▼
Where can I find the detailed Procurement Guidelines mentioned in Para 1.1?▼
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 1.1 of the Manual for Procurement of Goods, 2017, which of the following is NOT explicitly mentioned as a type of entity that undertakes procurement?
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