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Para 7.6.14 - CA Responsibility | KartavyaDesk

Goods Manual

Original Rule Text

contract satisfactorily and his credentials have been verified. It is a good practice for TC to spell out salient terms and conditions of the offer(s) recommended for acceptance. The TC should also ensure that any deviation/variation quoted by the supplier in his bid is not left undiscussed and ruled upon in the recommendations; otherwise, the supplier may delay acceptance of the contract. These recommendations are submitted for approval to the tender accepting authority. Since a nominee of Financial Adviser of the Department is usually a member of the Tender Committee, there is no need for the CA to consult the FA of the Department before accepting the TC recommendations. In any purchase decision, the responsibility of the CA is not discharged merely by selecting the cheapest offer or accepting TC recommendations but by ensuring whether:

What This Means

Para 7.6.14 of the Manual for Procurement of Goods, 2017 outlines the responsibilities of the Competent Authority (CA) after receiving recommendations from the Tender Committee (TC). Essentially, it clarifies that the CA's job isn't just about picking the cheapest option or blindly accepting the TC's suggestions. The CA needs to actively ensure that the selected supplier can actually fulfill the contract terms and that their background checks out. It also emphasizes that any deviations or variations proposed by the supplier during the bidding process have been properly addressed and resolved by the TC. This prevents potential delays later on. Because the Department's Financial Advisor (FA) is usually on the Tender Committee, the CA doesn't need to consult the FA again before accepting the TC's recommendations.

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

Key Points

  • CA's responsibility extends beyond selecting the lowest bidder or accepting TC recommendations.
  • CA must ensure the selected supplier's credentials are verified and they can fulfill the contract.
  • Any deviations or variations in the supplier's bid must be discussed and resolved by the TC.
  • No separate consultation with the Department's FA is required before the CA accepts TC recommendations, as the FA is usually a TC member.
  • The TC should clearly state the important terms and conditions of the recommended offer.

Practical Example

The Ministry of Textiles needs to procure 500 high-speed sewing machines. The Tender Committee, including a representative from the Financial Advisor's office, recommends 'StitchWell Industries' as the lowest bidder. However, StitchWell's bid included a clause stating they require 6 months for delivery instead of the stipulated 3 months. The TC discussed this deviation and recommended accepting it, citing StitchWell's superior machine quality. Before approving the purchase, the Competent Authority, Mr. Sharma, ensures that StitchWell's past performance is satisfactory and that the extended delivery time won't significantly impact the Ministry's projects. He reviews the TC's minutes to confirm the deviation was properly addressed. Since the FA's nominee was part of the TC, Mr. Sharma doesn't need to consult the FA separately before approving the purchase order.

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

Frequently Asked Questions

What is the primary responsibility of the Competent Authority (CA) after receiving Tender Committee (TC) recommendations?
The CA's primary responsibility is to ensure that the selected supplier is capable of fulfilling the contract terms, their credentials are verified, and any deviations in their bid have been properly addressed by the TC.
Does the CA need to consult the Financial Advisor (FA) of the Department before accepting TC recommendations?
No, a separate consultation with the FA is not required because a nominee of the FA is usually a member of the Tender Committee.
What should the Tender Committee (TC) ensure regarding deviations or variations quoted by the supplier?
The TC should ensure that any deviations or variations quoted by the supplier are discussed and ruled upon in their recommendations. This prevents potential delays in contract acceptance.
What happens if the CA only focuses on selecting the cheapest offer?
The CA's responsibility is not discharged merely by selecting the cheapest offer. They must also ensure the supplier's capability and address any deviations to avoid future complications.
What does 'credentials have been verified' mean in this context?
It means that the Competent Authority needs to ensure that the supplier has a good track record, the necessary experience, and the financial stability to successfully complete the contract.

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 7.6.14 of the Manual for Procurement of Goods, 2017, what is a key responsibility of the Competent Authority (CA) when making a purchase decision after receiving recommendations from the Tender Committee (TC)?

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