Para 3.22.25 — MSO (Audit)
Original Rule Text
3.22.25 The Feasibility Report should include a clear statement of the objectives, details of the existing arrangements, alternative solutions considered and the proposed solutions, financial implications and schedule of implementation. The following points should be borne in mind in respect of equipment selection:
(i) The requirements for acquisition, enhancement or replacement of computing facilities and the specifications should be stated concisely and precisely as they form the basis for potential suppliers.
(ii) The technical as well as commercial aspects of the proposal should be evaluated according to standard contracting procedures.
(iii) Procurement action should be initiated only after ensuring that the suppliers' offer conforms to the required specifications. This should be done by taking into account inter alia the following:
(a) technology options available at the time of procurement;
(b) useful life of the asset;
(c) incidental costs which could eventually be of sufficient magnitude, besides the hardware and software costs; and
(d) future development plans of the potential suppliers in terms of expendability, upgrading, etc.
What This Means
The feasibility report for IT acquisition must clearly state objectives, describe existing arrangements, present alternatives considered and proposed solutions, outline financial implications, and provide an implementation schedule. For equipment selection, requirements must be precisely specified, both technical and commercial aspects must be evaluated, and procurement should only proceed after ensuring the supplier's offer meets specifications — considering available technology, asset lifespan, incidental costs, and supplier's future development plans.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Feasibility report must include clear objectives, existing arrangements, and proposed solutions
- 2Alternative solutions must be considered and documented
- 3Financial implications and implementation schedule are mandatory elements
- 4Equipment specifications must be concise and precise for potential suppliers
- 5Technical and commercial evaluation must follow standard contracting procedures
- 6Procurement only after verifying supplier's offer meets specifications
- 7Consider technology options, asset lifespan, incidental costs, and supplier's future plans
Practical Example
A department's feasibility report for a new e-governance system mentions only one solution (custom development by a specific vendor) without documenting alternatives like off-the-shelf products or cloud-based services. The auditor flags this as a deficiency. Furthermore, the report ignored incidental costs like annual maintenance, staff training, and data migration — which turned out to be Rs 1.2 crore, almost equal to the Rs 1.5 crore hardware and software cost.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must alternative solutions be documented?▼
What are incidental costs in IT acquisition?▼
Why should supplier's future development plans be considered?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.