Para 3.6 - Supplier Registration | KartavyaDesk
Original Rule Text
v) The firm against whom punitive action has been taken shall not be eligible for reregistration during the currency of punitive action. Registration requests may not be entertained from firms (or their allied firms) who are deregistered/banned; h) Assessment of Capacity and Capability: The application form, complete in all respects and accompanied by the requisite processing fee and prescribed documents, shall be submitted by the firms to the registering authority. The registration application form, duly filled-in, when received from the firms, shall be scrutinised carefully to assess the capacity and capability of the firms, including credentials, manufacturing capability, quality control system, past performance, after-sales service facilities, financial background, and so on, of the applicant. References shall be made to other firms of the standing of whom the applicant firm claims to be a supplier/contractor. Likewise, the applicant firm’s bankers may also be requested to advise about the firm's financial standing. i) In cases where the firm is not considered capable and registration cannot be granted, the concerned authority shall communicate the deficiencies and shortcomings directly to the firms under intimation of the appellate authority. Where a request for reverification and review is made by the firm, along with any fee as prescribed and within the period prescribed by the Department, a review shall be undertaken. Requests for re-verification after the expiry of the said period would be treated as a fresh application, and a processing fee, if any is prescribed, charged accordingly; j) If considered to be capable after carefully assessing and verifying credentials, the firm may be granted registration with the approval of CA. k) Registration should be for specific trade groups of goods/works/services. For this purpose, all goods/ works/services should be divided into trade groups, and the information published on the relevant portals/ websites; l) It should be mentioned in the letter of registration that the registration is valid for a specified period (one to three years). At the end of this period, the registered supplier(s) willing to continue with registration is to apply afresh for renewal of registration. However, the registration would be initially treated as provisional, and it would be treated as confirmed only after the firm has satisfactorily executed one order of the relevant category and value from the Procuring Entity. The extension of validity of registration is not a matter of right, and the Procuring Entity reserves the right not to extend such registration without assigning any reason. New supplier(s) may also be considered for registration at any time, provided they fulfil all the required conditions; m) All registered suppliers should be allocated a unique registration number. The list of registered suppliers for the subject matter of procurement (indicating the names and addresses of the registered suppliers with details of the requirements and monetary value they will supply, as well as the validity period, and so on, for which they are registered), shall be exhibited on the websites of the Procuring Entity; n) Within the monetary limits so prescribed, as also for the category of registration, the registered firm may be exempted from depositing the Earnest Money Deposit (EMD). In other categories and higher monetary limits, the supplier would be treated as any unregistered supplier and not be entitled to the privileges of a registered supplier. The monetary limit or category, so laid down, does not, however, debar a firm from getting orders more than the monetary limit or for other categories, provided the Procuring Entity is satisfied with the capacity and capability of the firm but a requisite security deposit should be obtained, as is being done in the case of unregistered firms;
What This Means
Para 3.6 of the Manual for Procurement of Goods, 2017, outlines the process for registering firms as eligible suppliers to the government. It explains who can apply, how their application is assessed, and the conditions under which registration can be granted or denied. Think of it as the government's way of vetting potential vendors to ensure they're capable of providing quality goods and services. The rule aims to create a transparent and reliable system for selecting suppliers. It affects any business wanting to sell goods or services to the government, as well as the government departments responsible for procurement.
The rule also covers what happens if a firm's registration is rejected or if they've faced penalties in the past. Firms facing punitive action cannot re-register until the penalty period is over. If a firm is denied registration, they'll receive feedback on why and can request a review. Once registered, the firm gets a unique ID, and the registration is initially provisional, becoming confirmed after successful completion of an order. The registration is valid for a set period (1-3 years) and needs renewal. The government can refuse renewal without giving a reason, and new suppliers can apply anytime if they meet the requirements.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Firms facing penalties are ineligible for re-registration during the penalty period.
- •Registration involves a thorough assessment of the firm's capacity, capability, and financial standing.
- •Firms denied registration receive feedback and can request a review.
- •Registration is initially provisional and confirmed after successful order completion.
- •Registration is valid for a specified period (1-3 years) and requires renewal.
Practical Example
ABC Solutions, a software company, applies for registration to supply software to the Ministry of Education. The registering authority carefully scrutinizes ABC's application, checking their past performance, financial stability, and quality control processes. They also contact ABC's bank and previous clients for references. After the initial assessment, the authority finds some gaps in ABC's quality control documentation and informs ABC Solutions about these deficiencies, giving them a chance to address them.
ABC Solutions submits the required documents and requests a review. After reviewing the updated information, the authority is satisfied and grants ABC Solutions a provisional registration for two years. ABC Solutions successfully completes an initial order for the Ministry of Education. After successful completion, the provisional registration is confirmed. They are assigned a unique registration number and added to the list of approved suppliers. When the two-year registration period ends, ABC Solutions must re-apply for renewal if they wish to continue supplying to the government.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if a firm's registration is rejected?▼
How long is the registration valid for?▼
Can a firm re-apply for registration if it was previously deregistered or banned?▼
Is the registration automatically confirmed after it is granted?▼
Can the Procuring Entity refuse to extend the registration?▼
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 3.6 of the Manual for Procurement of Goods, 2017, a firm against whom punitive action has been taken is eligible for re-registration:
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