Procurement Procedure and Preparation of Procurement Plan 27 th Review Meeting of State FCs- Bhubaneswar (28 th -30 th October, 2010)

2 PROCUREMENT Strictly follow procurement procedure prescribed in Chapter IX of the revised Manual on FM&P. Manual provisions mandatory for all procurements. Follow State's financial ceilings except when not prescribed by MHRD. MHRD prescribed ceiling on MHRD’s ceilings extended up to vide letter dated Shall prevail on State ceilings.

3 Main Considerations EconomyEfficiency Equal Opportunity Transparency PROCUREMENT

4 Identification of Needs. Requisition from users. Exists specific budget provision. Assessment of bulk requirement at the beginning of the financial year. Computer, Equipment, furniture, books etc in economic lots as per annual need. All purchases be made to the best advantage after comparison of competitive prices. Points to be kept in view

5 PROCUREMENT Strictly follow the levels of procurement provided in Para 112 of FM&P  School/Community/ KGBV  CRC / BRC  District  State

6 School/KGBV level  All civil works, except buildings for BRCs, SIEMAT, Hostels and KGBV.  Furniture  School library  Teaching Learning Material  School grant. Maintenance grant.  Teaching and Learning Equipment  REMS  Learning Enhancement Programme (LEP).  Items required for KGBV.  Uniform EGS/AIE related items  TLM, Contingency etc.

7 CRC/BRC level  Civil works construction of hostel and KGBV buildings.  Furniture/equipment/computer etc.  Office contingencies  Teaching Learning Material  Teacher Training  Community Training  Civil works for construction of BRC/CRC.  Printing work  REMS

8 District level  Office equipment for DPO  Office furniture for DPO  Textbooks/other books/supplementary materials.  Computers and accessories.  Aids and appliances for CWSN  Office contingencies  Hiring of vehicles  Maintenance of equipment and vehicles  District level training and workshops  Printing work  REMS  ECCE Kit  Educational Kits for girls  Learning Enhancement Programme (LEP).

9 State level  Textbooks  Computers and its accessories  Office equipment for SPO  Office furniture for SPO  Equipment for distance education  Aids and appliances for CWSN  Office contingencies  Hiring of vehicles  Maintenance of equipment and vehicles  State level training and workshops  Printing work  Engagement of consultancy firms (service contract)  Engagement of Auditors for external and internal audit  Engagement of experts/resource persons  Engagement of NGOs  REMS  Learning Enhancement Programme (LEP).

10 PROCUREMENT Prepare the Procurement Plan every year and upload in SSA’s website as envisaged in Para 113 of the Manual.Procurement Plan Strictly follow financial ceiling prescribed for each method. Urged the States on to prepare the annual procurement plan for and upload the same in the web site. States need to revise the plan on the basis of supplementary plan approved by PAB. Most of the States yet to prepare the plan. Accord priority. Linkage of all procurements with plan will be looked in audits, post review and concurrent review.

11 1.Open Tender (Para of the Manual) 2.Limited Tender (Para 118 of the Manual) 3.Single Tender (Para 119 of the Manual) 4.Procurement without tender / quotation (Para 120 of the Manual) 5.Procurement through communities (Para 121 of the Manual) Method of Procurement

12 Financial ceiling for each contract CategoryOpen TenderLimited Tender Single Tender Community Goods>50,000 <3000,000 < 50,000<30,000 Works>40,000 <300,000 <50,000<40,000 Text booksUpto 1 million< SIEMATUpto 800,000 Information Technology equipment >50,000 <4 million <50,000 Books, Teaching materials school facility improvement, hiring of vehicles of equipment <30,000 Service Contract<200,000 Any contract in excess of the maximum limit indicated above shall not be procured using SSA funds. (In US $ equivalent)

13 OPEN TENDER Items covered: Civil works construction of BRC, Hostel, KGBV, SIEMAT and goods. Steps Preparation of tender documents Notification / Advertisement; Issue of tender documents; Submission of tender documents; Public opening of tender; Evaluation; Selection of lowest evaluated responsive tender based on post qualification; Negotiation with L-1 (if necessary) Contract award; and Contract performance

14 Prescribe bidding documents covering : Documents user friendly, self contained, comprehensive, unambiguous and relevant to the objective of purchase. Schedule of requirements Bid form and price schedule Technical specifications Post qualification criteria Validity period Earnest money Signing of bids Pre-bid conference Submission of bids Opening of bids Evaluation criteria

15 Negotiation with L1 Award of contract Signing of agreement/contract Security deposit Retention money Payment terms Liquidated damages Repeat Orders Quantity as per State procedure Place order within one month from the date of last supply Prices have since not reduced Purchases not made on urgent basis Rejection of all bids Lack of competition Tenders not substantially responsive Obtain the approval of competent authority

16 LIMITED TENDER Items covered: goods including books, uniforms teaching learning materials, school equipment, hiring of vehicles, and operation and maintenance of equipment  Invitation for quotations –  Based on comparing price quotations obtained from several suppliers, usually at least 3 to ensure competitive prices.  Issue a letter to the supplier to furnish the quotations for the required goods/equipment.

17 LIMITED TENDER Invitation for quotations –  No need of publication of notification in the newspaper/website.  Issue the request letters to suppliers on the approved list.  The request letter should indicate description, specifications and quantity of the goods as well as desired delivery time and place.  Only one quotation by each supplier.

18 LIMITED TENDER Bid Price Quote for the full quantity as described in the invitation letter. Corrections, if any, made by crossing out, dated initialing and re-writing. Include all duties, taxes and other levies payable by the Vendor/Supplier in the total price. The rates quoted by the Vendor/Supplier be fixed for the duration of the contract and not subject to adjustment on any account. The prices are quoted in Indian Rupee.

19 LIMITED TENDER Steps Identifying items; Laying down specifications; Estimating total numbers and costs of items; Need not notify in newspaper/website Identifying likely agencies borne on the approved list of contractors/ suppliers; (minimum 3, 8-10 for more competitive rates) Obtaining approvals of competent authority; Issuing letters of invitation; Processing quotations received;

20 Obtaining orders of competent authority for placing orders for supply; Issuing letters placing orders for supply and delivery period; Quoted price shall include all duties, taxes and other levies; Rates quoted be fixed and not subject to adjustment; Ensuring inspection; Ensuring timely supply: and Making payments after delivery in satisfactory condition.

21 SINGLE TENDER Followed in the case of articles specifically certified as of propriety nature; or manufactured by a particular firm; goods including books; teaching materials; school grant; hiring of vehicles; and operation and maintenance of equipment etc Appropriate for Extension of existing contracts Standard equipment/spare parts for existing equipments from original supplier. Items obtainable from one source Early delivery In exceptional cases such as natural disaster. Rate contracts of DGS & D and Rate contracts of State Governments are appropriate method under single tender system.

22 WITHOUT TENDER / QUOTATION Procurement of goods or group of goods estimated to cost the equivalent of the ceiling of State Govt. Issue suitable guidelines by the SIS THROUGH COMMUNITIES Construction of all civil works except, BRC, Hostel, KGBV and SIEMAT BRC construction if the community is technically capable Purchase of materials as per ISI certification, if available; SPD may provide simple procurement guidelines

23 Identify the committee locally operating in the area. Keep the following points in view: Active involvement of community in planning and implementation; Who will procure the materials or goods used in works; Goods / works have to be executed as per approved plans and specifications The name and designation of the Engineer for technical supervision and certification.

24 Suggested advance payments based on the certificate issued by the Supervising Engineer Advance (mobilisation advance upon start up of the work and on reaching lintel level) : 75% of total cost Plastering and completion of work : 25% of total cost School toilet and other repair works Advance (mobilisation advance upon start up of the work) cost : 75% of total Plastering and completion of work cost : 25% of total

25 Procurement of major items Textbooks – Single Tender (Textbooks Corporation, NCERT etc) and Open Tender IT Equipment – Limited Tender (State approved vendors) State Electronic Corporation/IT Deptt/other State agencies provided they follow State procedure and Manual provisions Open Tender and e-procurement Printing work – Rate Contract approved by State Government, Limited Tender and Open Tender

26 Service Contract Preparation of Terms of Reference Preparation of Cost Estimate and Budget Advertising Preparation of short list of consultants Receipt of proposals Formation of Evaluation Committee Evaluation of Technical and Financial proposals Final discussions including negotiations and award of the contract

27 Non-Government Organizations Preparation of Terms of Reference Advertising Formation of Evaluation Committee Selection of NGOs Approval by Grant-in-Aid Committee

28 Post Review by Government of India Mis-procurement Complaint Handling Mechanism PROCUREMENT

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