BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYS BY M. P. JUNEJA ADDL BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYS BY M.P.JUNEJA ADDL. MEMBER (Retd.) RAILWAY BOARD On 27-11-2010

Purchase Govt. Purchase Non-Govt. Purchase Govt. Purchase is also called Public Buying or Public Procurement

Public buying Covers the procurement of Materials/Works/Services by all government ministries, departments, public sector undertakings ,banks and other agencies using public funds.

Cardinal principles of public buying To Procure Goods/Works/Services of the specified quality within specified time at the most competitive prices in a Fair, Just& Transparent Manner.

Principles of Public Buying (As per GFR-2005) Efficiency, Economy, Transparency, Fairness, Equitability and Competition in procurement Clear and complete specifications in the tenders free of any ambiguity or deficiency Correct Quantity Estimates Well publicized tendering and bidding procedures. Well recorded deliberations in decision making No arbitrariness

Principles of Public Buying Contd.. Recent initiatives Right to Information Act2005 Integrity pact

Indian Railways Introduction Largest Railway system in the world under single management with 1.4mn employees About 6b passengers carried annually Freight loading in excess of 900MT Route KM 64000 No of trains: 15,000 No of stations:7,200

Assets to Maintain 8,000 locos 200,000 wagons 50,000 coaches Manufacturing of 300 locos,4000 coaches,20000 wagons and other rolling stock items

Assets to Maintain Contd.. To maintain and run such huge fleet of rolling stock efficiently, it is imperative that timely and un-interrupted supply of quality materials is ensured over the entire railway network

Mission Statement To strive for continuous improvement in customer satisfaction through improved availability of materials & to contribute significantly in making rail operations safe, competitive and a delightful experience for rail users

Procurement Volume About Rs.30,000crs annually and is likely to touch Rs.1 lakh crs in the next few years IR is one of the biggest and most diversified govt buyers in the country

Who Procures Railway Board Railways/Pus Divisional/Depot officers COFMOW/DLW/CLW DGS&D

How we procure Open Tender > Rs. 10L Limited Tender < Rs. 10L Single Tender Bulletin Tender Special Limited Tender for safety items even with tender value > Rs. 10L

E-Procurement Common platform using secured site for buyer and seller to participate in the procurement process n a fair and transparent manner Governed by IT Act Implemented on all Railways since March 2010.

Notable Features GFR Guidelines CVC Guidelines Govt. policies on reservation for SSI units Codal/Financial Provisions Dedicated Cadre of Technical officers MMIS covers almost 2lakh items of diversified nature

Notable Features Contd.. Adequate information/Time in Bidding Unambiguous Tender conditions and specifications Non-restrictive and non-discriminatory bidding process Eligibility and evaluation criteria clearly defined in the tender documents Clarifications (if any) to be given to all bidders through Press Release

Notable Features Contd.. To ensure Quality of the materials, purchase restricted from OEMs/Approved sources and inspection by RDSO/RITES Security deposit for safety items to ensure timely supply No waiver of Liquidated Damages (LD) for delay in supplies Weeding of unreliable suppliers

THANK YOU