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Para 1.5 - Procurement Rules | KartavyaDesk

Goods Manual

Original Rule Text

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.

What This Means

Para 1.5 of the Manual for Procurement of Goods, 2017, outlines the procedures for financial concurrence in procurement matters. Essentially, it describes two paths: a 'Normal Procedure' and a 'Special Procedure.' The 'Normal Procedure' requires that your department's Financial Advisor or Integrated Finance Division (IFD) must approve all procurement decisions unless the Department of Expenditure (DoE) has already delegated that authority. This is the default process unless a different approach is specifically approved.

The 'Special Procedure' allows the Secretary of your department to define a different level of IFD involvement, but only with the prior approval of the Secretary of Expenditure. This special procedure can specify the types of procurement cases (based on financial limits, stages in the process, or types of contracts like consultancy or works) that require IFD consultation. This offers flexibility but demands explicit authorization from the highest financial authority.

In short, this rule ensures financial oversight in government purchases. It affects all government departments involved in procuring goods and services, from the initial planning stages to the final contract award. It's crucial to understand which procedure applies to your department and the specific requirements for financial concurrence to avoid delays and ensure compliance.

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

Key Points

  • •Two procedures exist: Normal and Special.
  • •Normal Procedure requires IFD concurrence for all procurement matters unless re-delegated by DoE.
  • •Special Procedure requires Secretary Expenditure's approval for a different IFD involvement level.
  • •Special Procedure can define IFD consultation based on financial limits, procurement stages, or contract types.
  • •The rule ensures financial oversight and compliance in government procurement.

Practical Example

The Ministry of Rural Development is planning to procure 500 solar-powered water pumps for a rural development project. Under the 'Normal Procedure,' every stage of the procurement process, from drafting the tender document to awarding the contract, needs the approval of the IFD. However, the Secretary of the Ministry, after obtaining concurrence from the Secretary of Expenditure, establishes a 'Special Procedure.' This procedure states that IFD concurrence is only required for contracts exceeding ₹50 lakhs and for consultancy contracts related to the project. Since the water pump procurement is estimated to cost ₹75 lakhs, IFD approval is mandatory. If the ministry also needs to hire a consultant for the project, that contract will also require IFD approval, regardless of the amount.

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 IFD concurrence, and why is it important?▼
IFD concurrence means that the Integrated Finance Division of your department must approve a particular decision or action. It's important because it ensures that financial implications are properly considered and that spending aligns with budgetary allocations and financial regulations.
When does the 'Special Procedure' apply?▼
The 'Special Procedure' applies only when the Secretary of the Department, with the prior concurrence of the Secretary of Expenditure, decides to implement a different level of IFD involvement than the 'Normal Procedure'.
What happens if I don't get IFD concurrence when required?▼
Proceeding without required IFD concurrence can lead to delays, audit objections, and potential disciplinary action. It's crucial to ensure compliance with the applicable procedure.
Can the Secretary of a Department change the 'Special Procedure' once it's established?▼
Any changes to the 'Special Procedure' would likely require fresh concurrence from the Secretary of Expenditure to ensure continued alignment with financial regulations.
Where can I find the specific re-delegation orders from the Department of Expenditure?▼
Re-delegation orders are typically published on the Department of Expenditure's website and circulated within government departments. Consult your department's finance or procurement section for access to these orders.

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

Under the 'Normal Procedure' as defined in Para 1.5 of the Manual for Procurement of Goods, 2017, which of the following is generally required for all procurement matters?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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