1. 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

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

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

4. 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.

5. 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

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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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.

15. 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

16. 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

17. 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

18. THANK YOU