Para 1.8.2 — GOODS_MANUAL

1.8.3 Broader Obligations Principle: 1. Over and above transparency and professionalism, the procuring authorities also have the responsibility and accountability to conduct public Procurement in a manner that facilitates the achievement of the broader objectives, social policies and programme objectives (for example, economic growth, strengthening of local industry - make-in-India, Ease of Doing Business, job, and employment creation, and so on) of the Government - to the extent these are specifically included in the ‘Procurement Guidelines’. These policies are detailed in para 1.11 below.

2. In reference to the above two principles - Transparency and Professionalism Principle, It may be useful to refer to the following provisions in the General Financial Rules, 2017:

General Financial Rules, 2017, Rule 144. Fundamental principles of public buying (for all procurements, including Procurement of works): Every authority delegated with the financial powers of procuring goods in the public interest shall have the responsibility and accountability to bring efficiency, economy, and transparency in matters relating to public procurement and for fair and equitable treatment of suppliers and promotion of competition in public procurement.

3. The procedure to be followed in making public Procurement must conform to the following yardsticks (Rule 144 GFR, 2017): - a) offers should be invited following a fair, transparent, and reasonable procedure; b) the procuring authority should be satisfied that the selected offer adequately meets the requirement in all respects; c) the procuring authority should satisfy itself that the price of the selected offer is reasonable and consistent with the quality required;

1.8.2 Professionalism Principle: 1. As per these synergic attributes, the procuring authorities have a responsibility and accountability to ensure professionalism, economy, efficiency, effectiveness, and integrity in the procurement process. They must avoid wasteful, dilatory, and improper practices violating the Code of Integrity for Public Procurement (CIPP) mentioned in Chapter 3 of this Manual. They should, at the same time, ensure that the methodology adopted for Procurement is reasonable and appropriate for the cost and complexity and that it effectively achieves the planned objective of the Procurement. As part of this principle, the Government may prescribe professional standards and specify suitable training and certification requirements for officials dealing with procurement matters.

1.8.4 Extended Legal Responsibilities Principle: Procuring authorities must fulfil additional legal obligations in public Procurement, over and above mere conformity to the mercantile laws (which even private sector procurements must comply with). The Constitution of India has certain provisions regarding fundamental rights and public Procurement. Courts have, over time, taken a broader view of public Procurement as a function of the ‘State,’ interpreting these to extend the responsibility and accountability of public procurement Authorities. Courts in India thus exercise additional judicial review (beyond contractual issues) over public Procurement in relation to the manner of decision-making with respect to fundamental rights, fair play, and legality. Similarly, procuring authorities also have the responsibility and accountability to comply with the laws relating to Governance Issues like the Right to Information (RTI) Act and Prevention of Corruption Act, and so on. Details of such extended legal obligations are given in Appendix 2.

2. To support social policies, reservation of Procurement of specified goods from MSEs, weaker sections, backward regions, and reservation of Procurement of certain goods from MSEs, 3. To strengthen local industry and job/ employment creation, preferential Procurement of locally manufactured goods or services (Rule 153

(iii) of GFR, 2017) and support to Startup enterprises (Rule 170(i), 173

(i) of GFR, 2017); 4. To achieve programme objectives, reservation of Procurement of specified class of goods from or through certain nominated CPSEs or Government Organisations; 5. On the grounds of defence of India or matters directly or indirectly related thereto, including national security, impose restrictions, including prior registration and/ or screening, on Procurement from bidders from, or bidders having commercial arrangements with an entity from, certain country or countries, or a class of countries. Rule 144

(xi) of GFR, 2017 6. Facilitating broader objectives of other Departments of Government (for example, ensuring tax or environmental compliance by participants, Energy Conservation, accessibility for People with Disabilities, etc., Procurement policies and procedures must comply with accessibility criteria8 that the Government may mandate from time to time.