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Para 5.2 - Procurement Powers | KartavyaDesk

WORKS_MANUAL

Original Rule Text

5.2 Schedule of Procurement Powers (SoPP) 5.2.1 There are delegations up to a low threshold value below which the evaluation of the bids and decision for award of contract may be entrusted directly (instead on a recommendation of a Tender Committee) to individual competent authority. He would himself carry out all the steps in evaluation described below, instead of the TC and directly record reasons and decision on the file itself. He may ask for a Technical Suitability report from User Departments, if so needed. In procurements above such a threshold, evaluation is carried out by Tender Committee consisting of three or more members with requisite experience and competence. Members include a Financial Adviser or his representative and a representative of the user as per SoPP. Procuring Entity should lay down a SoPP specifying such thresholds. Experts may also be called in to assist the TC. TC should not be very large as it may slow down the evaluation process. There is no need to constitute any other committee for technical evaluation, preliminary evaluation etc. The representative of user Department will work as a convener of the TC. No member of the tender committee should be reporting directly to any other member of such committee in case estimated value of the procurement exceeds Rs. 25 lakh42 . Though the GFR stipulates this provision only when the estimated value of the procurement exceeds Rs. 25 lakh, it is desirable that the same provision should be followed in the constitution of all purchase committees irrespective of the value of procurement. Every Procuring Entity is expected to clearly lay down the powers, jurisdiction and composition of different levels of Tender Committee and corresponding Accepting Authority for different categories of procurement and different threshold values of procurements. Such an arrangement ensures checks & balances in the Tender Evaluation Process. Competent authority, in direct acceptance case; and member secretary of the Tender Committee will receive the bids opened along with other documents from the tender opening officials and are

What This Means

The rule emphasizes the importance of clearly defining the financial thresholds that trigger the need for a Tender Committee. It also specifies the composition of the TC, including representatives from finance and the user department, ensuring diverse perspectives are considered. The goal is to prevent any single individual from having unchecked authority over large purchases, promoting fairness and accountability. This process applies to all government departments involved in procurement and affects all employees involved in the tendering process, from those opening bids to those making the final award decision.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • Defines the Schedule of Procurement Powers (SoPP) based on procurement value.
  • Allows individual competent authority to handle procurements below a defined threshold.
  • Mandates a Tender Committee (TC) for procurements above the threshold, including finance and user department representatives.
  • Emphasizes clear delegation of powers and composition of Tender Committees.
  • Aims to ensure checks and balances in the tender evaluation process.

Practical Example

The Ministry of Rural Development needs to procure 100 water pumps for a rural irrigation project. The estimated cost is Rs. 15 lakhs. According to their SoPP, procurements below Rs. 20 lakhs can be handled by the designated Assistant Engineer, Mr. Sharma. Mr. Sharma, after obtaining a technical suitability report from the Irrigation Department, evaluates the bids and awards the contract to the lowest responsive bidder, documenting his reasons on the file. However, if the estimated cost was Rs. 30 lakhs, a Tender Committee would be formed, including a representative from the Finance Department and the Irrigation Department, with the Irrigation Department representative acting as the convener. This committee would collectively evaluate the bids and make a recommendation to the Accepting Authority.

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 the purpose of the Schedule of Procurement Powers (SoPP)?
The SoPP defines the financial limits and procedures for procurement, ensuring that appropriate levels of scrutiny and approval are applied based on the value of the purchase.
Who should be included in a Tender Committee?
A Tender Committee should include members with relevant experience and competence, including a Financial Advisor (or their representative) and a representative from the user department. Experts can also be called in to assist.
What happens if the estimated value of the procurement is just below the threshold for requiring a Tender Committee?
While the rule allows for individual handling below the threshold, it's always a good practice to consult with relevant stakeholders, especially for significant purchases, to ensure transparency and fairness.
Can the user department representative also be the financial advisor?
No, the rule specifies that the Tender Committee should include a Financial Advisor or their representative and a representative of the user department as separate members to ensure independent perspectives.
What if the user department doesn't have the technical expertise to evaluate the bids?
The competent authority or Tender Committee can request a Technical Suitability report from the relevant User Departments or call in external experts to assist in the technical evaluation.

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 Para 5.2 of the Works Manual, when is a Tender Committee (TC) MANDATORY for procurement?

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