Para 8.2 — NONCONSULT_MANUAL

8.2. Single Source Selection (SSS) 1. Selection of service providers through direct negotiations does not provide the benefits of competition in regard to quality and cost, lacks transparency in selection, and could encourage unacceptable practices. The reasons for SSS and selection of a particular service provider must be recorded and approved by the CA as per the delegation of powers laid down at in DPFR/SoPP, prior to single tendering. Powers of procurement of SSS must be severely restricted. Therefore, single-source selection shall be used only in exceptional circumstance, where it is inescapable over competitive selections as discussed in subparas below.

2. When in a Project, continuity for downstream work is essential, the initial Tender document shall outline this prospect, and, if practical, the factors used for the selection of the service provider should take the likelihood of continuation into account. Continuity in the technical approach, experience acquired, and continued professional liability of the same service provider may make continuation with the initial service provider (subject to satisfactory performance in the initial assignment) preferable to a new competition. For such downstream assignments, the Procuring Entity shall ask the initially selected service provider to prepare technical and financial proposals on the basis of Services and Activities Schedule for subsequent services, which shall then be negotiated. 3. If the initial assignment was not awarded on a competitive basis or if the downstream assignment is substantially larger in value, a competitive process shall normally be followed in which the service provider carrying out the initial work is not excluded from consideration if it expresses interest. 4. For selecting a service provider under this method, the Procuring Entity should prepare a full justification and take the approval of the competent authority as per the Annexure 2: Schedule of Procurement Powers (SoPP). 5. While selecting the service provider under this method, the Procuring Entity shall ensure that the service provider has the requisite qualification and experience to undertake the assignment. Normally the Procuring Entity shall adopt the same short-listing criteria as applied to similar assignments while evaluating the EoI. 6. Its CFA's (Competent Financial Authority) responsibility to ensure that a statement of all selections by nominations, every month are to be reported to Secretary/ Head of Ministry/ Department.