Para 4.3.3 — NONCONSULT_MANUAL

a) tasks that represent a natural continuation of previous work carried out by the firm; b) in case of an emergency situation, situations arising after natural disasters, situations where timely completion of the assignment is of utmost importance; c) situations where execution of the assignment may involve the use of proprietary techniques or only one service provider has the requisite expertise. This includes situations where services (repair, renovation, upgradation, etc.) are required from OEM

4.3.3. Direct Selection: Single Source Selection (SSS) 1. Under some special circumstances, it may become necessary to select a particular service provider where adequate justification is available for such single-source selection in the context of the overall interest of the Procuring Entity. (Rule 194 of GFR 2017, also see para 7.4.3). Direct selection is also called the Nomination mode of procurement (Please refer to para 4.4-4-d) below). The selection by SSS/ nomination is permissible under exceptional circumstances such as:

Risk Mitigation a) Inappropriate Selection of SSS: There is a possibility that SSS system is selected where LCS or other systems would have been more appropriate considering the quality requirements or the capability of Procuring Entity to monitor the assignment. The assignment may be split into parcels to avoid competitive selection systems or to avoid obtaining higher level approvals for SSS. Full justification for single source selection should be recorded in the file and approval of the competent authority (schedule of Procurement Powers – SoPP should severely restrict powers for SSS selection) obtained before resorting to such singlesource selection. In direct selection, the Procuring Entity should ensure fairness and equity, and the required consultancy/ Nonconsultancy services are not split into smaller sized procurement to avoid competitive processes. b) Cost may be unreasonably High: The single service provider is likely to charge unreasonably high prices. Procuring Entity must have a procedure in place to ensure that the prices are reasonable and consistent with market rates for tasks of a similar nature. If necessary, negotiations may be held with the service providers to examine reasonableness of quoted price.

(may be due to quality or warranty considerations) of the Mechanical or Electrical assets (of the nature of non-machinery and plant) d) At times, other PSUs or Government Organizations are used to provide technical expertise. It is possible to use the expertise of such institutions on an SSS basis; e) Under some special circumstances, it may become necessary to select a particular service provider where adequate justification is available for such single-source selection in the context of the overall interest of the Ministry or Department. Full justification for single source selection should be recorded in the file and approval of the competent authority obtained before resorting to such single-source selection.

2. The Procuring Entity shall ensure fairness and equity and shall have a procedure in place to ensure that: a) the prices are reasonable and consistent with market rates for tasks of a similar nature and b) the required NC services are not split into smaller sized procurement.

3. All works/purchase/ consultancy/ Non-consultancy contracts awarded on a nomination basis should be brought to the notice of the following authorities for informationa) The Secretary, in the case of ministries/departments. b) The Board of directors or equivalent managing body, in case of Public Sector Undertakings, Public Sector Banks, Insurance companies, etc; c) The Chief Executive of the organisation where such a managing body is not in existence. i) The report relating to such awards on a nomination basis shall be submitted to the Secretary/Board/Chief Executive /equivalent managing body every quarter. ii) The audit committee or similar unit in the organisation may be required to check at least 10% of such cases.

4. SSS - Risks and Mitigations:

Chapter 4: Bidding Design for Non-Consultancy Services