Para 8.9 — NONCONSULT_MANUAL

8.10. Private Security Manpower Services 1. Security services offer protection for life and property against theft, pilferage, fire etc., safety to manpower, guiding visitors to the premises, regulating entry of unwanted visitors, salesmen and maintenance of visitors register. This is one of the most frequently outsourced Non-Consultancy services. The Private Security Agencies (Regulation) Act, 2005 (PSARA) regulates the functioning of private security agencies in India. A PSARA license and labour licence are required for any person or entity that wants to operate a private security agency in India. The state government (in which the agency will be operating) issues these licenses.

2. Due to Operational and administrative reasons, around 60,000 skilled Armed Forces Personnel (skilled to undertake security guards related duties) are retired (Ex Servicemen - ESM) every year to maintain a youthful profile of the Armed Forces. Security Agencies (with ESM Officer as proprietor and other ESM as Security Supervisors/ Guards) are empanelled for “Provision of Security Services” by (Directorate General Resettlement – DGR, Department of Ex Servicemen Welfare – DESMW) to facilitates resettlement of ESM. These agencies have to employ ESMs as security guards/ supervisors in at least 90% of the deployed workforce. DGR monitors these agencies through reports/ returns.

3. The ‘Empanelment Certificate’ by DGR is issued (only to eligible ESMs having labour licence and PSARA certification in the relevant State) for a duration of five years (05) or up to the date when ESM Proprietor turns Sixty (60) years whichever is earlier.

8.9. Manpower Outsourcing Services79 1. Hiring of manpower through contracts should be avoided to ensure no future legal problems as these employees may demand regularization afterwards. Even, if employed, there should be no direct correspondence with such people. Even I-cards should be issued indicating the person to be representative of the contractor (name of the contractor to be mentioned). 2. Least Cost System (LCS) should be considered for procurement of Manpower Outsourcing Service, wherever appropriate, especially in high value cases. 3. In the procurement of Manpower Outsourcing Service, the minimum service charges (minimum floor price, inclusive of transaction charges) may be fixed as 3.85% (inclusive of GST). The procuring entities can also fix the service charge above 3.85% with proper justification on file, wherever required. However, such charges should not exceed 7% (inclusive of GST) in any case80. 4. There is no bar on award of tenders to lowest bidder, if he has quoted service charges more than the minimum prescribed service charges81 in the tender document (i.e. 3.85% to 7%) 5. This stipulation of Minimum floor price is applicable only if standalone Manpower is procured (not for Manpower plus Materials contracts) that too on the basis of service charges.

Manual for Procurement of Non-Consultancy Services, 2025 4. DGR empanelled agencies/companies are only eligible through DGR sponsorship. DGR empanelled agencies / companies are not eligible for participating in the Tender Enquiry directly i.e. without DGR sponsorship. DGR Sponsored security agencies do not need to fulfil minimum experience, minimum turnover qualifications. 5. Security Manpower Service for CPSEs is governed by orders from Ministry of Defence82 and Department of Public Enterprise83 (DPE). As per these instructions, CPSEs must avail Security Services only from DGR empanelled Ex-Servicemen (ESM) Security Service Providers. 6. Since these services are available on GeM, procurement of these services through “Security Manpower Service” 84 (under the Manpower Resource Outsourcing Service) functionality on GeM portal becomes mandatory. On this functionality, procuring Entity can upload their requirements in the web-based format. DGR issues a sponsorship letter to at least three ESM Service Agencies based their criteria to participate in such requirements on GeM. 7. Selection of a Service provider is based on the service charges quoted over the minimum wages. In no case service charges may be negotiated by CPSEs below the rate prescribed by DGR in its guidelines for empanelment of ESM Security Service Agencies from time to time (which is upto 10% at present). In the eventuality of all the DGR sponsored Agencies quoting the same rates, the Procuring Entity shall award the contract to the senior-most sponsored Agency. The order of seniority of sponsored agencies / private limited companies / corporation has been indicated in the sponsorship letter”. 8. Rest of details in uploading requirements and finalising the contract are available on the GeM portal.