Procurement Guidelines

CVC’s Guidelines on Public Procurement

The following details are based on CVC’s document Common irregularities/ lapses observed in stores/ purchase contracts and guidelines for improvement in procurement system, presentation of CTE on the CVC website and various CVC circulars.

• Objectives of Public procurement
• Quality product
• Competitive price
• On right time
• Process of procurement to be fair and transparent
• Provisioning
• The provisioning of the stores needs to be done with utmost care taking into account the available stock, outstanding dues / supplies, the past consumption pattern, average life of the equipment / spares. The requirements also need to be properly clubbed so as to get the most competitive and best prices. The requirements should not be intentionally bifurcated / split so as to avoid approval from higher authorities.
• One time purchase for projects or capital equipments / spares should be properly justified depending on the actual requirement usage, rate of return etc. Further, the obsolescence factor should also be taken into account i.e. the equipment to be purchased should conform to the latest specifications and technology available in the market.
• Appointment of Consultants
  The consultants need to be appointed only when it is felt absolutely essential. The appointment of consultants needs to be done in a transparent manner and after following the competitive tendering system. The consultant’s role should be well-defined. The consultant is meant to assist the departmental officers because of lack of expertise and, it should not mean that they takeover all the functions. The responsibilities relating to award of contract and execution of contract after appointment of consultant should not be abdicated completely by the organizations. Rather appropriate checks should be exercised at all stages of the execution of the contract. Penal clauses for deficiency in service should invariably be stipulated in the contracts/MOUs with the consultants.
• Estimated Rates
  The estimated rate should be worked out in a realistic and objective manner on the basis of prevailing market rates, last purchase prices, economic indices for the raw material/labour, other input costs, IEEMA formula, wherever applicable and assessment based on intrinsic value etc.
• Types of tender
• Open
• Limited- only when purchase is for small value, urgent & repetitive panel of venders should be appointed in a transparent manner.
• Single- only for proprietary item
• Tender on nomination basis- Supreme Court held it to be violative of Art 14 of Constitution [ Office Order 005/CRD/19 dated 5-7-07 ]
• SC Exception- natural calamities, emergency declared by govt., single source, tender called on several occasions, but no bid or reasonable bid.