Para 4.4 — NONCONSULT_MANUAL

2. There is a laid down delegation of powers of procurement to various competent authorities under different modes of procurement, as shown in DFPR (Annexure 1). Each procuring entity may also publish its own Schedule of Procurement Powers (SoPP), delegating such powers within the entity. A suggested format for SoPP is given in Annexure 2.

3. The various modes of procurement that can be used in the procurement of Nonconsultancy Services are (GFR 201742): a) Advertised Modes: The advertised modes of procurement are designed to foster a spirit of healthy competition. These modes ensure the broadest possible competition by widely publicising procurement opportunities. (Rule 161 GFR 2017):

i) Open Tender Enquiry (OTE): Also known as National Competitive Bidding (NCB), this mode involves inviting bids through public advertisements to maximise participation for procurement above Rs 50 Lakhs. ii) Global Tender Enquiry (GTE): Also referred to as International Competitive Bidding (ICB), this mode invites bids from international vendors to ensure global competition. There is a restriction on the use of this mode below Rs 200 crores. iii) Electronic Reverse Auction (eRA): Not appropriate where QCBS system of evaluation is used in the procurement of Non-consultancy services.

b) Pre-qualification Modes: These modes of procurement are restricted to shortlisted pre-qualified bidders. The shortlisting is done transparently, based on qualification criteria to identify bidders who have the capability to perform the contract. Shortlisting itself is done through wide publicity akin to advertised tenders.

i) Pre-Qualification Bidding Mode (PQB): In this mode, only those bidders who meet specific qualifications are invited to submit bids. ii) Approved Vendor Lists (AVL): Procurement is restricted to vendors who have been pre-approved and included on a long-term multi-use list based on their demonstrated ability to meet the required standards. (Please refer to Para 4.7 of the Manual for Procurement of Goods, Second Edition, 2024 for details on the AVL).

4.4. Modes of Procurement 1. Offers from prospective bidders in public procurement must be invited according to a procedure that achieves a balance between the need for the widest competition, on the one hand, and the complexity, time, effort, and cost of the procedure, on the other hand. Different modes of procurement and tendering systems are used to suit various procurement circumstances to achieve this balance. Various modes of procurement vary the extent of competition (width and specificity of catchment area of bidders) to suit different procurement situations. Mode of Procurement addresses the ‘Right Source’ of the 5Rs.

c) Restricted Modes: In restricted modes, the bidding is limited to known and selected bidders without the public advertisements seen in advertised modes. Unlike the Prequalification mode, the shortlisting or registration of bidders is based on less rigorous checks of capability and past experience, without relying on wide publicity or stringent qualification criteria. (Rule 162 GFR 2017):

i) Limited Tender Enquiry (LTE): This mode invites bids from a select group of suppliers/ service providers and is used for procurements up to Rs. 50 lakhs. (Refer Annexure 9) ii) Special Limited Tender Enquiry (SLTE): LTE type of process applicable for procurements above Rs. Fifty lakhs in exceptional circumstances, where limited competition is justified.

d) Nomination Modes: If, in an exceptional situation, it becomes necessary to procure a non-consulting service from a specifically chosen contractor, the Competent Authority in the Ministry or Department may do so in consultation with the Financial Adviser. In such cases, detailed justification, the circumstances leading to the selection, and the special interest or purpose served by this procurement must form an integral part of the proposal. (Rule 204 GFR 2017):

i) Proprietary Article Certificate (PAC): This is used when procurement is required from a specific vendor due to the proprietary nature of the goods or services (say, from OEMs). ii) Single Tender Enquiry (STE) without PAC: This allows procurement from a single source without a PAC under specific conditions. In case of Single Tender procurements: 1). a report relating to such awards on nomination basis shall be submitted every quarter to: • The Secretary, in case of Ministries/Departments. • The Board of Directors or equivalent managing body, in case of Public Sector Undertakings, Public Sector Banks, Insurance companies, etc; • The Chief Executive of the organisation where such a managing body is not in existence. 2). The audit committee or similar unit in the organisation may be required to check at least 10% of such cases.

e) Shopping Modes: These are used for small-value procurements where formal tendering is not practical. (Rules 154, 155 GFR 2017):

i) - Direct Procurement without Quotation: Small purchases (upto Rs 50,000) made directly without soliciting formal bids. (refer Annexure 7) ii) Direct Procurement by Purchase Committee: A committee-based approach for direct purchases, typically used for low-value (upto Rs 5 Lakhs) items. (Refer Annexure 8) f) Rate Contracts: Also known as Framework Agreements, are agreements with suppliers/ service providers to provide goods or services at pre-agreed rates for a specified period.

4. Applicability, Terms and Conditions, Risks, and mitigations of these modes of procurements (including restrictions regarding GTE mode for procurements below Rs 200 Crore) are detailed in Chapter 4 of the Manual for Procurement of Goods, 2024 which may be referred to. For the sake of brevity, these are not repeated here.

5. Mode of Procurement of Higher Value Non-consultancy Services: In procurements of Non-consultancy services above Rs 50 (Rupees Fifty-five) Lakhs, it should normally by an

Chapter 4: Bidding Design for Non-Consultancy Services advertise mode (i.e. OTE). Services which are available on GeM have to be mandatorily procured through that portal (please refer to para 4.6.3)). (Rule 201

(ii) of GFR, 2017)

6. Mode of Procurement of Lower Value Non-consultancy Services: For procurement below Rs 50 (Rupees Fifty) Lakhs, LTE can be issued to a selected shortlist of likely service providers. To start with preparation of a long list of potential service providers may be done on the basis of formal or informal enquiries from other Ministries or Departments or Organisations involved in similar activities, Chambers of Commerce & Industry, Association of non-consultancy firms etc. The Procuring Entity should scrutinise the preliminary long list of likely service providers as identified above and shortlist the prima facie eligible and capable service providers from the long list. The number of service providers in this moderated long-list should be more than three. To smoothen this shortlisting of service providers, Procuring entities who do frequent procurement of nonconsultancy services may consider the preparation of a Panel of qualified service providers, after evaluation of their credentials, on the lines of registration of vendors in the procurement of goods. (Rules 199 and 201

(i) of GFR 2017). Services that are available on GeM have to be mandatorily procured through that portal (please refer to para 4.6.3). 7. Mode of Procurement of Small Value Non-consultancy Services: In small value, procurement of Non-consultancy services, the service provider may neither be capable of handling the bidding process, nor procurement may be done by shopping mode of procurement. For procurement upto Rs 50,000 (Fifty thousand), the ‘Direct Procurement without Quotation’ mode of procurement used in Procurement of goods may very well be utilised in such cases. Similarly, for procurement of services upto Rs 5 (Rupees Five) Lakhs, ‘Direct Procurement by a Purchase Committee’ mode as used in procurement of Goods may be utilised. In all such modes of procurement, the procedure prescribed in the Manual for Procurement of Goods, 2024 may be followed. Please refer to Annexures 7 & 8 for certificates to be recorded for such procurements.