Para 4.4 - Non-Consultancy Procurement | KartavyaDesk
Original Rule Text
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.
What This Means
Para 4.4 of the Manual for Procurement of Non-Consultancy Services outlines the procedures for procuring services that aren't related to consultancy, and are of relatively lower value. Specifically, it addresses procurements below ₹50 lakhs. For these procurements, the rule allows for a Limited Tender Enquiry (LTE) process, where a shortlist of potential service providers is invited to submit bids. The goal is to balance efficiency with ensuring a competitive process, especially when the services are not available on the Government e-Marketplace (GeM). For even smaller procurements, below ₹5 lakhs, direct procurement methods similar to those used for goods can be adopted to streamline the process.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •LTE is permitted for non-consultancy services below ₹50 lakhs.
- •A long list of potential service providers should be created and then shortlisted.
- •The moderated long-list should contain more than three service providers.
- •For procurements up to ₹5 lakhs, direct procurement methods (like purchase committees) used for goods can be adopted.
- •Services available on GeM must be procured through GeM.
Practical Example
The Ministry of Culture needs to hire a company to provide security services for a three-month exhibition at a cost of ₹40 lakhs. Since the service is not available on GeM, Mr. Sharma, the Under Secretary, decides to use the LTE method as per Para 4.4. He starts by creating a long list of security service providers based on recommendations from other ministries and industry associations. After scrutinizing the list, he shortlists five companies that meet the eligibility criteria. He then issues a Limited Tender Enquiry to these five companies, and after evaluating their bids, awards the contract to the lowest responsive bidder. For a smaller requirement, like hiring a data entry operator for ₹40,000, Mr. Sharma can use direct procurement without quotation, similar to how goods of that value are procured.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is LTE and when can it be used for non-consultancy services?▼
How should I create a shortlist of service providers for LTE?▼
What if the required service is available on GeM?▼
Can I use the same procurement methods as for goods when procuring low-value non-consultancy services?▼
Where can I find the certificates to be recorded for direct procurements?▼
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, for procurements below ₹50 lakhs, which method is permitted?
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