Para 3.8 — GOODS_MANUAL

3.8. Enlistment of Indian Agents Ministries/ Departments, if they so require, may enlist Indian agents who desire to quote directly on behalf of their foreign principals56. (Rule 152 of GFR 2017)

Chapter 4: Modes of Procurement and Tendering Systems 4.1. Modes of Procurement 1. Offers from prospective bidders in public procurement must be invited according to a procedure that achieves a balance between the need for the widest competition, on the one hand, and the complexity, time, effort, and cost of the procedure, on the other hand. Different modes of procurement are used to suit various procurement circumstances to achieve this balance. Various modes of procurement vary the extent of competition (width and specificity of catchment area of bidders) to suit different procurement situations. Mode of Procurement addresses the ‘Right Source’ of the 5Rs. 2. There are laid down delegation of powers to approve different modes of procurement to various competent authorities as shown in DFPR (Annexures 2 and 3). Each procuring entity may also publish its own Schedule of Procurement Powers (SoPP) delegating such powers within the entity. A suggested format for SoPP is given at Annexure 4. 3. The various modes of procurement that can be used in public procurement are (GFR 201757): a) Advertised Modes: These modes of procurement aim for the widest possible competition through wide publicity (Rule 161 GFR 2017): i) Open Tender Enquiry (OTE, also known as National Competitive Bidding – NCB, or simply Advertised Tender Enquiry, but this manual would stick to OTE); ii) Global Tender Enquiry (GTE, also known as International Competitive Bidding – ICB, but this manual would stick to GTE) iii) Rate Contracts iv) Electronic Reverse Auction (eRA) - Dynamic Price Discovery b) Pre-Qualification Modes: These modes of procurement are restricted to shortlisted pre-qualified bidders. The shortlisting is done transparently, based on qualification criteria to identify bidders who have the capability to perform the contract. Shortlisting itself is done through wide publicity akin to advertised tenders. i) Pre-Qualification Bidding Mode (PQB) ii) Approved Vendor Lists (AVL) c) Restricted Modes: These modes of procurement are restricted to known, selected bidders. Unlike the Pre-qualification mode, the shortlisting is not based on rigorous qualification criteria through wide publicity. The shortlisting/ registration of bidders (as per para 3.6 above) is based on less rigorous checks of capability and past experience. (Rule 162, GFR 2017). i) Limited Tender Enquiry - LTE (up to Rs. 50 (Rupees Fifty) lakh); ii) Special Limited Tender Enquiry (SLTE above Rs. 50 (Rupees Fifty) lakh under exceptional circumstances) d) Nomination Modes: Procurement in these modes of procurement is done from a single source in special circumstances. (Rule 166 GFR 2017) i) Proprietary Article Certificate (PAC);

4.2. Open Tender Enquiry (OTE) 1. In Open Tender Enquiry (OTE), an attempt is made to attract the widest possible competition by publishing the NIT simultaneously on the designated websites. This is the default mode of procurement and gives the best value for money, but the procedure is relatively complex and prolonged. The systemic cost of this procedure may be high enough to be unviable for smaller value procurements.

ii) Single Tender Enquiry (STE) without PAC e) Shopping Modes: Procurement in these modes of procurement is done without tendering or calling for formal bids for small value procurements. (Rule 154, 155 GFR 2017) i) Direct Procurement without Quotation; ii) Direct Procurement by Purchase Committee;

2. OTE procedures through e-procurement or through traditional tendering should be adopted in the following situations: a) Procurements exceeding the threshold of Rs. 50 lakhs (Rupees Fifty Lakh); b) All requirements with clear technical specifications; c) For requirements that are ordinarily available in the open market, it is necessary to evaluate competitive offers to decide the most suitable and economical option available and d) When requirements are not available from known sources or sources are presently limited and need to be made broad-based. In such situations, even for procurements below Rs. 50 (Rupees Fifty) lakhs, the OTE mode may be used if warranted.

(Rule 161 of GFR 2017)