Para 3.8 - Procurement Modes | KartavyaDesk

Original Rule Text

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);

What This Means

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

Key Points

• •Procurement modes aim to balance competition with efficiency.
• •Different modes suit different procurement situations.
• •Delegation of powers for approving procurement modes is defined in DFPR and individual entities' Schedules of Procurement Powers (SoPP).
• •Modes include Advertised (Open Tender, Global Tender, Rate Contracts, eRA), Pre-Qualification, Restricted (Limited Tender, Special Limited Tender), and Nomination.
• •The choice of mode depends on factors like the value of the procurement and the complexity of the goods or services.

Practical Example

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

Frequently Asked Questions

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