Para 8.9 - Security Manpower Procurement | KartavyaDesk
Original Rule Text
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.
What This Means
Para 8.9 of the Manual for Procurement of Non-Consultancy Services specifically addresses how Central Public Sector Enterprises (CPSEs) should acquire security manpower services. It mandates that CPSEs *must* obtain these services exclusively from Ex-Servicemen (ESM) Security Service Providers who are empanelled with the Directorate General Resettlement (DGR). This means CPSEs can't just hire any security company; they need to use DGR-approved providers. The process is further streamlined through the Government e-Marketplace (GeM) portal, where CPSEs post their requirements and DGR sponsors at least three ESM agencies to bid.
The selection of the security service provider hinges on the service charges quoted *above* the minimum wage. Importantly, CPSEs are prohibited from negotiating service charges below the minimum rate prescribed by DGR (currently up to 10%). If all sponsored agencies quote the same rate, the contract is awarded to the most senior agency, as indicated in the DGR's sponsorship letter. This ensures fair competition and prioritizes experienced ESM providers. The GeM portal provides detailed instructions on uploading requirements and finalizing the contract.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •CPSEs *must* procure security manpower services only from DGR-empanelled Ex-Servicemen (ESM) Security Service Providers.
- •Procurement is mandatory through the 'Security Manpower Service' functionality on the GeM portal.
- •DGR sponsors at least three ESM agencies to participate in the bidding process on GeM.
- •Selection is based on service charges quoted *above* the minimum wage; negotiation below DGR-prescribed rates is prohibited.
- •If all agencies quote the same rate, the contract is awarded to the senior-most sponsored agency.
Practical Example
Bharat Electronics Limited (BEL), a CPSE, needs to hire security personnel for its Bangalore facility. Following Para 8.9, BEL uploads its requirements on the GeM portal using the 'Security Manpower Service' functionality. The DGR then issues sponsorship letters to three ESM security agencies: 'Veer Rakshak Services', 'Sainik Suraksha Pvt. Ltd.', and 'Desh Seva Force'. All three agencies submit their bids, quoting service charges above the minimum wage. 'Veer Rakshak Services' quotes the lowest service charge within the permissible limit. Therefore, BEL awards the contract to 'Veer Rakshak Services'. If all three had quoted the same rate, BEL would have awarded the contract to whichever agency was listed as the most senior in the DGR sponsorship letter.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a CPSE directly hire a security agency without DGR sponsorship?▼
What happens if the lowest bid is still higher than the CPSE's budget?▼
Where can I find the list of DGR-empanelled security agencies?▼
What is the current permissible service charge percentage prescribed by DGR?▼
Does this rule apply to all types of security services, or only manpower?▼
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, from whom MUST CPSEs procure Security Manpower Services?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for Non-Consultancy Manual and other government rules