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Para 4.9.1 - Single Source Procurement | KartavyaDesk

Goods Manual

Original Rule Text

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.

What This Means

Para 4.9.1 of the Manual for Procurement of Goods, 2017, outlines specific situations where you're allowed to buy goods from only one particular seller (single-source procurement) without going through the usual competitive bidding process. This is an exception to the general rule of open tendering, designed to address unique needs and maintain efficiency in certain circumstances. It's important to remember that this isn't a loophole to avoid competition; it's a provision for when competition simply isn't feasible or beneficial.

This rule applies when the user department knows only one firm makes the required goods, or when standardization is crucial for existing equipment compatibility. It also covers situations where the manufacturer's warranty requires using only their parts. For advanced research and educational institutions, it allows for procuring specialized equipment and spares from the original vendor to maintain the integrity of research protocols. In all cases, proper justification and approval from the competent authority are essential.

Essentially, this rule provides flexibility while ensuring accountability. It affects all government departments and organizations involved in procurement, particularly those dealing with specialized equipment, research, or maintaining existing infrastructure. It's crucial to understand the conditions under which single-source procurement is permitted and to follow the proper approval procedures to avoid any irregularities.

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

Key Points

  • •Allows single-source procurement in specific, justified cases.
  • •Requires knowledge that only one firm manufactures the goods or for standardization purposes.
  • •OEM spares are allowed if required by manufacturer's warranty.
  • •Advanced research institutions can procure from original vendors for consistency.
  • •Requires approval from the competent authority and justification.

Practical Example

The National Institute of Astrophysics (NIA) needs to replace a critical component in their advanced telescope. After consulting with their technical experts, they determine that only 'AstroTech Solutions' manufactures the specific component required for compatibility with the existing telescope system. Furthermore, replacing the component with a non-AstroTech part would void the telescope's warranty. The Project In-charge, Dr. Sharma, prepares a detailed justification outlining these reasons and obtains approval from the Director of NIA. They then directly procure the component from AstroTech Solutions for ₹5,00,000, ensuring the telescope's functionality and maintaining its warranty.

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

Frequently Asked Questions

When is single-source procurement allowed under Para 4.9.1?▼
It's allowed when only one firm manufactures the required goods, for standardization with existing equipment, when OEM spares are required by warranty, or for maintaining research consistency in advanced institutions.
What documentation is required for single-source procurement?▼
A detailed justification explaining why single-source procurement is necessary, along with approval from the competent authority, is essential.
Does this rule allow bypassing competitive bidding for convenience?▼
No, this rule is only for specific situations where competitive bidding is not feasible or beneficial due to the unique nature of the requirement.
Who is the 'competent authority' that needs to approve the procurement?▼
The 'competent authority' varies depending on the organization and the value of the procurement. It's usually a senior officer or a committee designated for procurement approvals.
What happens if I don't follow Para 4.9.1 correctly?▼
Failure to comply with procurement rules can lead to audit objections, disciplinary action, and potential legal consequences.

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 4.9.1 of the Manual for Procurement of Goods, 2017, under what circumstance is single-source procurement permissible?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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