Para 4.6 — NONCONSULT_MANUAL

4.6.1. Electronic Procurement (e-Procurement - Rule 160 of GFR 2017) 1. Electronic procurement (e-procurement) is the use of information and communication technology (especially the internet) by the buyer (through a third-party e-procurement portal) in conducting procurement processes with the vendors/ contractors for the acquisition of goods (supplies), works and services aimed at open, non-discriminatory, and efficient procurement through transparent procedures. A generic description of how eProcurement is conducted is detailed in ‘Appendix 3: Electronic Procurement (eProcurement) and e-Auction’ of the Manual for Procurement of Goods, 2024. 2. It is mandatory for ministries/departments to receive all bids through e-procurement portals that are GCQE43 compliant for all procurements. This condition will not be applicable for the procurement made without quotation (under Rule 154 of GFR, 2017) or through purchase committee (under Rule 155 of GFR, 2017). 3. Normally, in e-procurement, no manual Tender Documents are provided, nor any manual bids are accepted. It is not a good practice to call both electronic as well as manual bids in the same tender. Sub-paras 4) and 5) below allow exemptions in specific situations mentioned therein from e-procurement in cases where it is not convenient or feasible. 4. In Global Tender Enquiry (by any mode – Open Tender, Limited Tender or Single Tender), e-procurement may not be mandatorily insisted upon. However, e-Publishing would still be mandatory. 5. In individual cases where national security and strategic considerations demand confidentiality, Ministries/ Departments may exempt such cases from e-procurement after seeking the approval of the concerned Secretary and with the concurrence of Financial Advisers. In case of tenders floated by Indian Missions and CPSE units abroad, the Competent Authority for deciding the tender may exempt such cases from e-procurement. 6. The National Informatics Centre (NIC) has an e-procurement portal called the Central Public Procurement Portal (CPPP). There are other service providers in the Public Sector (e.g., MSTC) and the Private sector that can be utilised for e-procurement. Details about the process of e-procurement are available from the service providers. ‘Appendix 3: Electronic Procurement (e-Procurement) and e-Auction’ of the Manual for Procurement of Goods, 2024 also gives such generic details of the e-Procurement process. 7. Ministries/ Departments that do not have a large volume of procurement or carry out procurements required only for the day-to-day running of offices and have not initiated eprocurement through any other solution provided so far may use e-procurement solution developed by NIC. Other Ministries/ Departments may either use an e-procurement

4.6. Channels of Procurement Public Procurement can be channelled by way of Manual Bids, eProcurement Platforms, GeM Portal or through third-party agencies.

Chapter 4: Bidding Design for Non-Consultancy Services solution developed by NIC or engage any other service provider (GCQE44 compliant) following due process.

8. These instructions will not apply to procurements made by Ministries/ Departments through Government e-Marketplace (GeM).

(Rule 160 of GFR 2017) 4.6.2. Dynamic Price Discovery - Electronic Reverse Auction (eRA) Electronic Reverse Auction (eRA, a type of auction classified as a dynamic procurement mode) is an online real-time purchasing technique used to select a successful bid. eRA is an iterative process with automatic evaluation of bids, where bidders can offer successively more favourable bids to displace the lowest bid at any given moment within the duration of the eRA. The starting price, minimum bid decrement, duration of the auction, and the maximum number of automatic extensions are announced before the start of the online reverse auction. If a new lower bid is received within the last few minutes (pre-announced, say five minutes) of closing time, the closing time may get automatically extended by a few minutes (pre-announced, say ten minutes) for others to respond. A maximum number of such extensions may be preannounced (say 50). The most favourable bid at the end of the stipulated/ extended time is declared as successful. It has, however, to be ensured that the entire process is conducted transparently and fairly. Electronic reverse auctions can be a powerful tool for procuring goods and services, but they also come with potential risks and drawbacks. Procedure, applicability, and counter-indications for eRA are detailed in para 4.16.2 of the Manual for Procurement of Goods, 2024, which are not being repeated here for the sake of brevity.