Para 4.9.1 — GOODS_MANUAL

4.9.1 Terms and Conditions 1. The tender process would be the same as in the case of a normal LTE described above. However, the tender documents are more detailed, as in the case of OTE. 2. The indentor should certify that there is an existing or prospective urgency for operational or technical requirements and that any additional expenditure involved by not procuring through an advertised tender enquiry is justified in view of urgency. The indentor should also put on record the nature of the urgency and reasons why the procurement could not be anticipated. 3. In domestic tenders, any bid in foreign currency should be summarily rejected.

4.10. Proprietary Article Certificate (PAC) Procurement In the procurement of goods, certain items are procured only from Original Equipment Manufacturers (OEMs) or manufacturers having proprietary rights (or their authorised dealers/stockists) against a PAC certificate (Annexure 9). This mode may be the shortest, but since it may provide lesser VfM than LTE/OTE and strains the transparency principle, it should be used only in justifiable situations. Such situations may arise on the following grounds where a PAC can be certified:

Risk Mitigation 1. Risks, as applicable in both LTE and OTE, are also applicable here. In addition, there is a risk that this mode may be used unjustifiably to avoid open tendering (OTE). All mitigation strategies of LTE and OTE shall also apply here. In addition, the checks and balances systems should be tighter by way of enhanced and severely restricted delegation of powers for certification of urgency and approval of this mode of procurement. A system of reports from the authority signing the urgency certificate and post facto review of utilisation of received goods/works/services to tackle the expressed urgency may be laid down.

a) Unlike LTE, Bid Security and Performance Security are taken in SLTE as in OTE tenders. 4.9.2 SLTE - Risks and Mitigations

1. It is in the user department's knowledge that only a particular firm is the manufacturer of the required goods. 2. For standardization of machinery or components or spare parts to be compatible with the existing sets of machinery/equipment (on the advice of a competent technical expert)), or if it is a condition of the manufacturer’s warranty that only OEM spares are to be used during the warranty period, the required goods are to be purchased only from a selected firm duly approved by the competent authority. 3. In case of Advanced Educational, Research, Development and Scientific Institutes/ Organisations of National importance, specialised equipment and their spares/consumables may have to be procured from the same Original vendor (on the advice of a competent technical expert and approved by the Project in-charge), to maintain consistency/ reproducibility/ continuity of established/ standardized methods/ protocols to attain objectives of such projects.

(Rule 166 i) and iii) of GFR 2017)