Para 4.10.1 — GOODS_MANUAL

4.10.1 Terms and Conditions 1. Users should enclose, with their Indent, a PAC certificate signed by the appropriate authority as per DFPR/ SoPP with the concurrence of associated finance for sourcing an item from OEM or PAC firms or their authorised agents. Once a PAC is thus signed, the powers of procurement are the same as in normal conditions as per the delegation of powers.

4.10.2 PAC - Risks and Mitigations

4.11. Single Tender Enquiry (STE) without a PAC A tender invitation to one firm only without a PAC certificate is called a single tender. This mode may be the shortest, but since it may provide lesser VfM as compared to LTE/OTE and may also strain the transparency principle, it should be resorted to only under the following conditions, where a PAC cannot be certified:

Risk Mitigation 1. There is a risk that this mode may get used unjustifiably to restrict competition. Such risks get aggravated in case of secrecy about such procedures as alternative vendors/contractors may not even come to know about such opportunities The delegation of powers should be restricted for signing the PAC. Even in PAC procurements, the NIT and the Award of Contract should be put on GeM- CPPP and Procuring Entity websites. 2. Once approved, there is a risk of a nexus getting developed, and the mode may continue to be used for many years without fresh application of mind No item should be procured on a PAC basis for more than three years, after which a mandatory OTE mode may be used to test the market. The procuring entity may also keep an eye on the GeM portal for other vendors who can supply such items. 3. The bidder may charge a price higher than the market To the extent feasible, the PAC firm should be asked to accept a “fall clause” - undertaking that if it supplies or quotes a lower rate to other governments, the public sector, or private organisations, it shall reimburse the excess. If the price offered is not acceptable, negotiation as per provision of para 7.6.9 may be held with the PAC firm.

2. Proprietary items shall be purchased only from a nominated manufacturer, or its authorised dealer as recorded in the PAC certificate; 3. In certain unavoidable cases, the procuring authority may have no alternative but to waive payment of EMD/SD for procurement on a proprietary basis;

1. In the case of an existing or prospective emergency relating to operational or technical requirements to be certified by the indentor, the required goods are necessary to be purchased from a particular source, subject to the reason for such decision being recorded and approval of the competent authority obtained.

(Rule 166

(ii) of GFR 2017)