Chapter 1 - Procurement Overview | KartavyaDesk
Original Rule Text
1. Various Ministries, Departments, attached and subordinate offices, local urban bodies, public sector enterprises, and other Government (including autonomous) bodies (hereinafter referred to as ‘Procuring Entities’) spend a sizeable amount of their budget on the Procurement of goods, works and services to fulfil their stated objectives, assigned duties/ obligations/ responsibilities/ functions, and activities in alignment with desired policy outcomes. 2. The Ministries / Departments have been delegated full powers to make their own arrangements for the procurement of goods and services that are not available on the government e-marketplace (GeM). These powers must be exercised as per the Delegation of Financial Power Rules and in conformity with the ‘Procurement Guidelines’ described below. Common use Goods and Services available on GeM are required to be procured mandatorily through GeM as per Rule 149 of GFR, 2017. 3. To ensure that these procurements are made by following a uniform, systematic, efficient, and cost-effective procedure and also to ensure fair and equitable treatment of service providers, there are guidelines comprising a hierarchy of Statutory framework, Rules and Regulations, Manuals of Procurement and Procurement Documents as detailed in Annexure 1 of Manual for Procurement of Goods, 2024 (hereinafter referred as ‘Procurement Guidelines). 4. At the apex of the Statutory framework governing public Procurement is Article 299 of the Constitution of India, which stipulates that contracts legally binding on the Government must be executed in writing by officers specifically authorised to do so. The Constitution also enshrines Fundamental Rights (In particular, Articles 14 – Right to Equality before Law and 19 (1) (g) – Right to practice any profession, or to carry on any occupation, trade, or Business) which have implications for Public Procurement. Further, the Indian Contract Act of 1872 and the Sale of Goods Act of 1930 are significant legislations governing contracts of sale/ purchase of goods in general. There are other mercantile laws (Arbitration and Conciliation Act, 1996; Mediation Act, 2023; Competition Act, 2002; Information Technology Act, 2000; Indian Stamp Act, 1899, etc. as amended from time to time) that may be attracted in Public Procurement Transactions. 5. In the Central Government, there is no law exclusively governing public procurement. However, comprehensive Rules and Regulations in this regard are available in the General Financial Rules (GFR), 2017 (especially chapters 6 to 9); Delegation of Financial Powers Rules, 2024 (DFPR); Government orders regarding purchase preference/ restrictions like Public Procurement (Preference to Make in India), Order 2017, facilities to Micro and Small Enterprises and Start-ups, Restrictions on Entities from a Class of Countries (Rule 144 (xi), GFR 2017) etc. 6. Without purporting to be a comprehensive compendium of all such ‘Procurement Guidelines’, this Manual is intended to serve as a portal to enter this vast area and draw attention to basic norms and practices governing public procurement.
What This Means
This chapter of the Manual for Procurement of Non-Consultancy Services sets the stage for how government bodies buy services that aren't advisory or consulting in nature. It emphasizes that various government entities, from ministries to local bodies, spend a lot of money on procuring services to achieve their goals. To make sure this money is spent wisely and fairly, the government has established guidelines for these purchases. These guidelines aim to create a uniform, efficient, and cost-effective process while ensuring all service providers are treated equitably.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Government entities must follow established procurement guidelines when buying non-consultancy services.
- •The goal is to ensure a uniform, efficient, and cost-effective procurement process.
- •Fair and equitable treatment of all service providers is a key objective.
- •Procurement must align with the Delegation of Financial Power Rules and Procurement Guidelines.
- •GeM (Government e-Marketplace) should be used mandatorily for common goods and services.
Practical Example
The Ministry of Education needs to hire a company to provide cleaning services for its headquarters. According to this chapter, the ministry must follow the established procurement guidelines. They can't just pick any company; they need to issue a tender, evaluate the bids based on pre-defined criteria, and ensure the process is transparent and fair to all bidders. If the cleaning service is available on GeM, they are required to procure it through GeM. If not, they must follow the Delegation of Financial Power Rules and Procurement Guidelines. The entire process must be documented, and the contract must be executed in writing by an authorized officer, ensuring compliance with Article 299 of the Constitution.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are 'Procuring Entities'?▼
What is GeM and when should it be used?▼
Where can I find the comprehensive rules and regulations for public procurement?▼
What is the legal basis for public procurement in India?▼
What is the purpose of this manual?▼
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 the Manual for Procurement of Non-Consultancy Services, which of the following is NOT explicitly mentioned as a type of entity that falls under the definition of 'Procuring Entities'?
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