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Para 1.11 - Outsourcing Justification | KartavyaDesk

Non-Consultancy Manual

Original Rule Text

1.11. When is Procurement of Non-Consultancy Service justified In the interest of economy, efficiency and to provide more effective delivery of public services, Rule 198 of GFR, 2017 permits Ministries/ Departments to procure/ outsource NC services (e.g. non-core, auxiliary and support services). Approval of the competent authority should be obtained before engaging service providers. We may justify need for Procurement of NC services on consideration of: -

What This Means

Para 1.11 of the Manual for Procurement of Non-Consultancy Services explains when it's okay for government departments to hire outside companies for non-consulting work. Think of it as outsourcing for tasks that aren't the department's main focus. The goal is to save money, improve efficiency, and deliver better public services. This rule is based on Rule 198 of the General Financial Rules (GFR), 2017, which allows this kind of outsourcing.

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

Key Points

  • •Procurement of Non-Consultancy (NC) services is permitted under Rule 198 of GFR, 2017.
  • •The primary justification is to achieve economy, efficiency, and better public service delivery.
  • •NC services typically include non-core, auxiliary, and support services.
  • •Approval from the competent authority is mandatory before engaging any service provider.
  • •Departments must justify the need for outsourcing NC services based on factors like cost savings and improved performance.

Practical Example

The Ministry of Jal Shakti needs to digitize old land records. Instead of hiring a large team of data entry operators permanently, which would involve significant recruitment and training costs, they decide to outsource the data entry work to a private company, 'Data Solutions Pvt. Ltd.' The estimated cost for outsourcing is ₹50 lakhs, while hiring a permanent team would cost ₹80 lakhs over the same period. Before signing the contract, the Joint Secretary (Administration) approves the outsourcing proposal, justifying it based on the cost savings and the specialized expertise of Data Solutions Pvt. Ltd. in data digitization.

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 Non-Consultancy (NC) services?▼
NC services are typically non-core, auxiliary, or support services that a government department might outsource. Examples include data entry, security services, housekeeping, and vehicle maintenance.
Who needs to approve the procurement of NC services?▼
The competent authority within the Ministry/Department needs to approve the procurement. This is usually a senior officer, such as a Joint Secretary or equivalent.
What is the main reason for procuring NC services?▼
The main reasons are to achieve economy, efficiency, and improved delivery of public services. Outsourcing can often be more cost-effective and efficient than performing these tasks in-house.
Where can I find the detailed guidelines for procuring NC services?▼
The detailed guidelines are provided in the Manual for Procurement of Non-Consultancy Services and Rule 198 of the General Financial Rules (GFR), 2017.
Does this rule apply to all government departments?▼
Yes, this rule applies to all Ministries and Departments of the Government of India.

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 1.11 of the Manual for Procurement of Non-Consultancy Services, which rule of the General Financial Rules (GFR), 2017, permits Ministries/Departments to procure/outsource Non-Consultancy (NC) services?

Related Rules

Para 3.2Manual for Procurement of Non-Consultancy Services, 2025 - Para 3.2 - Chapter 3Para 4.1.1Manual for Procurement of Non-Consultancy Services, 2025 - Para 4.1.1 - Chapter 3Para 4.2.3Manual for Procurement of Non-Consultancy Services, 2025 - Para 4.2.3 - Chapter 3Para 4.4Manual for Procurement of Non-Consultancy Services, 2025 - Para 4.4 - Chapter 3Para 6.8Manual for Procurement of Non-Consultancy Services, 2025 - Para 6.8 - Chapter 6

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