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Para 9 - Integrity Pact Duration | KartavyaDesk

Goods Manual

Original Rule Text

Section 9 – Pact Duration This Pact begins when both parties have legally signed it. It expires for the Contractor 12 months after the last payment under the contract, and for all other Bidders, 6 months after the contract has been awarded. Any violation of the same would entail disqualifying the bidders and exclusion from future business dealings.

What This Means

Para 9 of the Manual for Procurement of Goods, 2017, deals with the duration of the Integrity Pact. Think of the Integrity Pact as a promise of ethical behavior during the procurement process. This rule essentially defines how long that promise remains in effect for different parties involved. It's like setting an expiration date on the agreement to ensure everyone stays honest throughout the entire process and even for a short period afterward.

For the company that wins the contract (the 'Contractor'), the Integrity Pact lasts for 12 months after they receive the final payment. This means they're still bound by the ethical guidelines even after the project is technically complete. For all the other companies that bid but didn't win, the Pact expires 6 months after the contract is awarded to someone else. This ensures fairness and prevents any unethical behavior even after the selection is made. Breaking this promise can lead to serious consequences, including being disqualified from the current bid and being banned from future government contracts.

This rule is crucial for maintaining transparency and accountability in government procurement. It affects all bidders and the procuring entity, ensuring that everyone involved adheres to the highest ethical standards throughout the entire process, from bidding to project completion and payment.

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

Key Points

  • •Integrity Pact duration is defined for both the winning contractor and other bidders.
  • •For the Contractor, the Pact lasts 12 months after the last payment.
  • •For other Bidders, the Pact lasts 6 months after the contract award.
  • •Violation leads to disqualification and exclusion from future business.
  • •Ensures ethical conduct throughout the procurement process.

Practical Example

The Ministry of Textiles is procuring new weaving machines. Three companies, Alpha Textiles, Beta Industries, and Gamma Corp, submit bids. Alpha Textiles wins the contract for ₹5 crore. According to Para 9, the Integrity Pact for Alpha Textiles will remain in effect for 12 months after the Ministry makes the final payment for the machines. For Beta Industries and Gamma Corp, the Pact expires 6 months after the contract is awarded to Alpha Textiles. If Beta Industries, within those 6 months, attempts to bribe a Ministry official to gain inside information on future tenders, they would be in violation of the Integrity Pact and could be blacklisted from future government contracts.

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 Integrity Pact mentioned in Para 9?▼
The Integrity Pact is an agreement between the procuring entity and the bidders, committing them to ethical conduct and transparency during the procurement process.
When does the Integrity Pact expire for a company that didn't win the contract?▼
It expires 6 months after the contract is awarded to the winning bidder.
What happens if a company violates the Integrity Pact?▼
The company may be disqualified from the current tender and excluded from future business dealings with the government.
Does the Integrity Pact apply only during the bidding process?▼
No, it extends beyond the bidding process. For the winning contractor, it lasts until 12 months after the final payment is made.
Who is responsible for enforcing the Integrity Pact?▼
The procuring entity (e.g., the government department) is responsible for ensuring compliance with the Integrity Pact.

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 9 of the Manual for Procurement of Goods, 2017, for how long does the Integrity Pact remain in effect for the successful contractor after the last payment is made under the contract?

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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