Para 1.5 — GOODS_MANUAL

2. Being a decision with a financial bearing and hence invariably requires consultation of the Financial Adviser (unless validly re-delegated within permissible limits or otherwise permitted by DoE through specific orders). The extent of involvement of the Financial

1.5. Authorities competent to purchase goods and Consultation with Financial Advisers 1. The first step in procurement is the decision to procure something, such as goods, services, works, etc., involving a formal decision to procure something along with the exact or approximate expenditure to be incurred. A Competent authority that is competent to incur expenditure may accord administrative sanction/ approval to incur expenditure on a specific procurement in accordance with the Delegation of Financial Rules (DFPR – extracted in Annexures 2 and 3) by following the ‘Procurement Guidelines’ (Rule 145 of GFR 2017). Each ‘Procuring Entity’ may issue a Schedule of Procurement Powers (SoPP), adding further details to the broad delegations in the DFPR based on assessing risks involved in different decisions/ approvals at various stages of the Procurement Cycle. A suggested structure of such SoPP is enclosed as Annexure 4.

1.6. Basic Aims of Procurement – the Five R’s of Procurement In every Procurement, public or private, the basic aim is to achieve just the right balance between costs and requirements concerning the following five parameters called the Five ‘R’s of Procurement. The entire process of Procurement (from the time the need for an item, facility or service is identified till the need is satisfied) is designed to achieve such a right balance. The word ‘right’ is used in the sense of ‘optimal balance.’

Adviser and the Integrated Finance (IFD) in subsequent stages of procurement matters may be based on one of the following procedures (Para 19, Charter for FA, 2023):

a) Normal Procedure: Under this procedure, the concurrence of the Financial Adviser/ IFD shall be required on all procurement matters, except for matters where redelegation has been done within the permissible limits under the rules/ general orders/ general instructions of DoE. Unless the Secretary of the Department approves a special procedure with the concurrence of DoE, this procedure shall be followed. b) Special Procedure: With the prior concurrence of Secretary Expenditure, the Secretary of the Department may decide on a different level of involvement of the Financial Adviser /IFD specific to the Department. The procedure shall lay out the types/ classes of cases where the Financial Adviser/ Integrated Finance Division’s (IFD) consultation would be required, which may be in terms of threshold financial limits, stages in Procurement or types of Procurement and contracts, viz. Consultancy, goods and works contracts, etc. or any permutation thereof.

It is further clarified that this system will be applicable only to Ministries/ Departments etc., covered under the FA Charter. All other organizations including CPSEs are free to device their own system.

3. In all procedures, payments under approved contracts shall not require IFD consultation except in cases where the payments are in relaxation/variation to approved contract conditions.