1. Revised Procurement Policy, 2015
Deepa Sadekar- Deshpande
Associate Professor
Yashada

2. Fundamental Principles of Public buying : (A) Procurement of goods in Public Interest- i . Efficiency, ii. Economy, iii. Transparency

3. Fundamental Principles of Public buying
(B) Fair & Equitable treatment to suppliers (C) Promotion of Competition

4. Yardsticks to Public Procurement
Specifications in terms of quality
Need based procurement (avoid excess)
Fair, Reasonable Transparent procedure
Procurement Vs Requirement
Reasonableness of Rate
Procurement within MRP
Payment through RTGS
Sustainable procurement policy
Procurement Officer needs to be at least in the rank of Group B Oficer
Each stage of procurement should be recorded

5. Procurement Thresholds
Purchases below Rs.5000/- : No need to call three quotations .Annual limit for such purchasing is Rs
Purchases above Rs 5000/- and below Rs /- at one time : At least three quotations from the agency having VAT/TIN No. If the agency does not have Vat No., then PAN card of the supplier is needed.
Procurement on Rate contract of DGS&D is permissible only upto Rs. 1 Crore (Annual Limit)
Procurement above Rs /- shall be compulsorily by e tender.
Procurement Committee shall procure within their financial limits ; responsible for all the related decisions
Procurement before 15th February is must, no payment shall be made after 15th March.
Administrative approval for the procurement is admissible for one year.

6. State Level Adm. Deptt. Procurement Committee
Head of the Department
President
Procurement Officer (Group A )
Member Secretary
Deputy Secretary of Adm Deptt
Member
MFAS Officer (Group A / B )
Invitee
Joint Director, Industry Deptt
Any Other Invitee if required
Technical Expert if required

7. Regional Level Procurement Committee
Head of the Department /Regional Head
President
MFAS Officer (Group A / B )
Member
Joint Director, Industry Deptt /Member
Procurement Officer of the Department
Technical Expert if required
Invitee

8. District Level Procurement Committee
District Head of the Department /Regional Head
President
MFAS Officer (Group A / B )
Member
Joint Director, Industry Deptt /Member
Procurement Officer of the Department
Technical Expert if required
Invitee

9. Tender Period & Extension of Tender
Lakh week or 5 working days whichever is more
25Lakh– 5Cro. – 2 weeks/10 working days whichever is more
5 Cro. & above – 3 weeks/15 working days whichever is more
Urgent Tender Enquiry -- 1 week/5 working days whichever is more

10. Extension of Tender First Extension - One Week
Second Extension - One Week
Revision of tender document if required
Retender – one week
Finalization with conscience
Estimated Cost less than Rs. 10 Lakhs – Only one extension is enough

11. Tender Fee & EMD Estimated Cost Tender fee (Rs.) Yearly Increase (Rs.)
EMD (Rs.)
Upto Rs. 5 Lakhs
1000
100
5000
500
Rs.5 Lakhs -10 Lakhs
2000
200
10000
Rs.10 Lakhs -50 Lakhs
3000
300
50000
Rs.50 Lakhs – 1 Crore
100000
Above 1 crore
Respective Dpartment

12. Security Deposit (4.6)
Within 15 days from the date of work order. If the party is unable to submit the SD the office may cancel the tender.
If the firm registered under Department of Industries / National Small Industries Corporation (NSIC) / Micro,Small and Medium Enterprises development Institute (MSMEDIS) , 3% of tender cost or Rs , whichever is less.
3% of the estimated cost : DD or Bank Guarantee
2% of estimated cost if
The firm is registered under DGS&D
The work is undertaken by any Govt., Semi Govt office or Zilla Parishads or any other State or Central Govt. Undertakings.

13. Tender Process at a glance
Estimate Quantity and Amount
Framing technical specifications
Preparation of Tender Document
Publication of Tender Notice
Sale of Tender Documents
Pre Bid conference

14. Tender Process at a glance
Submission of Tenders
Opening of Tenders
Evaluation of Tenders
Finalisation and Approval
Award of Contract
Performance Security
Contract Agreement

15. Repeat Order Placed only once
50% of original order or Rs. 10 crore ; whichever is less.
If original order is urgent tender enquiry – no repeat order
Placed within six months from the original work order.
Same quality ; same rate
Principle of ordinary prudence.

16. Post Tender Action
Inspection of Goods
Receipt of Goods
Submission of bills by Supplier
Release of Payment

17. Urgent Order Procedure
Limited tender enquiry
Short period (upto 7 days)
Higher rates likely to be quoted by suppliers
Certificate in the prescribed form signed by the Secretary or Jt.Secretary of the Dept.
To be use only when requirements are of an emergent, unexpected or un avoidable nature.

18. EVALUATION PROCESS Tender is sealed
Tender documents must clearly specify evaluation criteria
Two types of Bids :
* Technical
* Financial
Tender evaluation to be in accordance with evaluation criteria

19. EVALUATION PROCESS
*The factors for initial examination : * Whether the tenderer meets the eligibility criteria ? * Whether the crucial documents have been submitted and duly signed / attested ? * Whether the requisite EMD (Earnest Money Deposit) has been furnished ?

20. EVALUATION PROCESS
Time taken for evaluation and extension of tender validity.
Process of tender evaluation to be confidential until the award of the contract is notified.
Difference between TOC (Tender Opening committee) & TEC
(Tender Evaluation Committee)

21. EVALUATION PROCESS * Satisfaction of Conditions specific to the contract * Sample Testing * Capacity Evaluation * Turnover * Statutory documentation * Arrival at Outcome Price of the bid * Determination Of L-1, L-2, L-3 ……. * Determining Reasonableness of the L-1 Rates * Recommendation for Negotiation (if require)

22. IMPORTANT ISSUES RE.PROCUREMENT
Filing System not satisfactory
Provisioning to be done with utmost care
Estimated Rate worked out in an unprofessional mind
Adequate Publicity to be given

23. RESERVATION OF ITEMS SSI Units MSSIDC
Yantrmag, Hatmag, Handmade Paper Industries
Directorate of Printing & Stationery

24. POINTS FOR SCRUTINY ABOUT RESERVED ITEMS
Refer to original G R reserving the item
Is the item to be procured as per G.R. ?
Is the reservation valid ?
What about rates ?

25. POST CONTRACT MANAGEMENT
All clauses in the contract to be studied carefully.
Extension to Delivery Period not be entertained.
No relaxation in contract terms to be allowed except in very exceptional cases.

26. ADVANCE PAYMENTS Normally to be Discouraged.
To be released only up to 20% of the total contract value.
Only after taking an unconditional Bank Guarantee.

27. NEGOTIATIONS Post Tender negotiations should be generally avoided.
If unavoidable ,should be done only with L1 in case of purchase of goods.
Should be done only with H 1 in case of sale of material.

28. IMP CLAUSES IN CONTRACT
Delivery Schedule
Pre-dispatch Inspection
Warranty
Risk purchase
Penalty

29. Government Procurements and The Indian Contract Act, 1872
Section 2 (h)of the Indian Contract Act, 1872 defines a Contract as “An Agreement enforceable by law”
The making of a Contract requires the mutual consent of two or more persons / Parties one of them making an offer and another one who is accepting.
If one of the two parties fails to keep the promise, then the other is entitled to legal recourse.

30. Government Procurements and The Indian Contract Act, 1872
The Indian contract Act, 1872 does not prescribe any form for entering into contracts. A contract may be oral or in writing.
A Contract entered into by or with the central or state Government has to fulfill certain formalities as prescribed by Article 299 of the Constitution.

31. Government Procurements and The Indian Contract Act, 1872
Three conditions to be fulfilled by contracts made in exercise of the executive power of the Centre or state.
The Contract must be expressed to be made by the President or the Governor, as the case may be.
These contracts are to be executed on behalf of the President / Governor
The execution must be by such person and in such manner as the President or Governor may direct or authorize.

32. Principles Underlying Government /Contracts
Reasonableness
All Government contracts should be informed with reason and free form arbitrariness (Article 14 )
Public Interest
No Government Contract should give an appearance of bias,corruption or nepotism
Equality, Non Arbitrariness
Any Government contract which is arbitrary is violative of article ( 14 )
Contractual Liability
If the Government derives any benefit under an agreement not fulfilling the requisites of Article 299 (1) the Government may be held liable to compensate the other party under section 70 of the Indian Contract Act.

33. THANK YOU