1. 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

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

3. 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

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

5. 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.

6. 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.

7. 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.

8. 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 ( The site is being maintained and hosted through an Internet Service Provider, KITINFINET.

9. 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.

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