PROCUREMENT PLAN States should prepare Procurement Plan for the entire outlay approved by the PAB for the State Component and all the Districts. The Procurement Plan needs to be complete in all respects taking into account the outlay approved by the PAB for each activity. Various methods of Procurement prescribed in the Manual to be followed during the year need to be indicated in the plan. Civil Works either through community or through contractors have also to be provided in the plan. The complete stages for each contract have to be indicated in the plan by the States. A Model Procurement Plan is given below

Annual Procurement Plan The meeting of the PAB for consideration of AWP&B for 2014-15 is over and PAB Minutes has been. uploaded and issued States are requested to o prepare the Annual Procurement Plan for 2014-15 immediately on receipt of the Minutes. And upload them by 15/6/2014

PROCUREMENT PLAN Six Stages are prescribed for Goods and nine stages for Civil Works GOODS Preparation of specifications and bids document. Issue of Invitation to bid. Open bids Evaluation Award Contracts Delivery CIVIL WORKS Evaluation of bids Award of contracts Construction 25% complete Construction 50% complete Construction 75% complete Construction 100% complete

PROCUREMENT PLAN Process . PROCUREMENT PLAN Process The flowchart below shows each of the stages in the procurement process

PROCUREMENT PLAN KEY TAKEAWAYS The procurement plan includes determining the category of materials or services, choosing the type of contractual relationship, soliciting bids, selecting bidders, managing the work, and closing the contracts. The decisions made when selecting the type of contract are based on whether the materials can be provided by suppliers, vendors, or partners; how well defined the work is; how the risk will be shared; the importance of the task to the schedule; and the need for certainty of the cost. Companies that bid on contracts are evaluated on past performance and current financial status. RFQs and RFPs are sent to those companies. RFQs are evaluated on price and RFPs are evaluated on price and method. Long lead time items are identified and monitored. Items that are critical to the schedule or delayed are assigned to an expediter. The logistics of handling delivery, storage, and transportation are determined. Work and materials are inspected for quality.

Procurement Audit (WB) Following procurement reviews/audit will be conducted for the project: The CA firms to be utilized to audit the accounts of SIS, including reviewing procurement procedures being used. The FMP Manual requires the recruitment of internal auditors at SIS, who will also be responsible for internal procurement audit. The Comptroller and Auditor General (CAG) of India also conduct the procurement audit (as part of the financial audit) of MHRD. MHRD to conduct concurrent review of SIS.

Procurement supervision All aspects of Elementary Education III including procurement shall be reviewed during Joint Review Missions which will be arranged twice a year. Post Procurement Review All contracts issued under Elementary Education III will be subject to post review on a sample basis annually. These reviews are meant to ensure that the agreed procurement procedures are being followed. Considering the large number of institutions involved, Post review of contracts will be conducted in a few selected states annually in consultation with MHRD in order to cover all states within a four year cycle.

PROCUREMENT PLAN Procurement Software An online Procurement software to monitor procurements worth Rs. 10 lakh and more has been hosted sometime back on a dedicated website (www.rte-ssaprocurement.com). The site is being maintained and hosted through an Internet Service Provider, KITINFINET.

Procurement Thresholds (WB) Thresholds for various Methods of Procurement Category Method of Procurement Threshold (US$ Equivalent) Works Open Tender Up to 500,000 (Up to 800,000 only for SIEMAT buildings) Limited Tender Up to 75,000 Single Tender Procurement through Communities Goods except IT Equipment and Textbooks (1) (also applicable for non-intellectual services and the services contracted on the basis of performance of measurable physical outputs) Up to 500,000 Up to 50,000 Goods (only Textbooks) (2) Up to 2,000,000 Up to 1,000,000 Goods (only IT Equipment) Up to 3,000,000 Up to 30,000 Consultants’ Services As per FMP Manual Up to 300,000 [1]All goods of lesser than US$ 1000 in value could be acquired without quotation [2] Single Tender procedure will be used in the states which have textbook corporations. In case of other states, Open Tender procedure will be used to purchase the textbooks or get these printed.

PROCUREMENT ISSUES AREAS OF CONCERN Procurement procedures not being followed Non-Use of CAD Maintenance and Non-Production of Records Procurement without quotation