Procurement Procedure in SSA
33rd Review Meeting of State FCs- Delhi
(24th - 25th May 2012)
PROCUREMENT
Main
Considerations
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Main Considerations of Proficient
Procurement
(i)
Economy: Give the purchaser best value for money.
(ii)
Efficiency: Best procurement is simple and swift, producing positive
results without protracted delays.
(iii)
Fairness: Impartial, consistent, and therefore reliable.
(iv)
Transparency: Maintains rules and procedures that are accessible
and unambiguous. It is not only fair, but should be seen to be fair.
(v)
Accountability and Ethical Standards: A key deterrent to collusion
and corruption, and a key prerequisite for procurement credibility.
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Why is Procurement Important?
•
•
In procurement terms inputs are generally grouped into three
categories:
(i)
Civil Works – School Infrastructure and facilities like New
PS, UPS, Residential Schools, Hostel, ACR, HM Room,
BRC/URC, CRC, Drinking water, Toilets, Girls Toilet, Ramps,
Handrail, Electrification, Retro-fitting, Boundary wall/ fencing,
Major Repairs, etc.
(ii) Goods - Typically
equipment,
computers,
furniture,
textbooks, library books, uniforms, TLE, TLM, other materials,
supplies, commodities, etc.
(iii) Services – Hiring of services including academic, technical
and resource support provided by institutions/organizations in
all areas, research studies, third party quality evaluation of
civil works, auditors etc.
The quality, timeliness, local appropriateness and affordability of
those procured inputs can largely determine whether the public
investments will succeed or fail.
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Effective Procurement
Objectives
Right
Quality
product
Right
quantities
Lowest
possible
price
Meeting
recognized
standards
Timely
Delivery
as per
schedule
Reliable
suppliers
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PROCUREMENT IN SSA
• Strictly follow procurement procedure prescribed in Chapter IX of the
Manual on Financial Management and Procurement (FM&P).
• Mandatory to follow the Manual provisions for all procurements
under SSA.
• Follow States’ financial ceilings except when not prescribed by
MHRD.
• Strictly follow MHRD’s financial ceilings prescribed for various method
of procurement on 17-09-2008 as extended on 2-7-2010 which shall
prevail on States’ ceilings.
• This ceiling is applicable upto 30-9-2012 and thereafter follow the
State ceiling.
• Convert the Ceilings in US$ to Indian Rupee by adopting RBI’s
buying rate of exchange prevailing on the date of issue of purchase
order/work order.
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MHRD’s Financial ceilings per contract
(In US $ equivalent)
Category
Open Tender
Limited
Tender
Single
Tender
Goods
>50,000
<3000,000
< 50,000
<30,000
Works
>40,000
<300,000
<50,000
<40,000
Text books
Upto 1
million
SIEMAT
Upto 800,000
Information Technology
equipment
>50,000
<4 million
Books, Teaching materials
school facility improvement,
hiring of vehicles of equipment
Service Contract
•
Community
<40,000
<500.000
<50,000
<30,000
<200,000
Any contract in excess of the maximum limit indicated above shall not be
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procured using SSA funds.
Points to be kept in view
• Identification of Needs.
• Ensure availability of 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.
• Procure miscellaneous items of stores not covered by bulk
requirement as per actual need.
• Make all purchases to the best advantage after comparison of
competitive prices.
• Strictly follow the level of procurement prescribed in the Manual
• Encourage decentralized procurement
•
Avoid centralized procurement of items prescribed at lower level8
PROCUREMENT

Strictly follow the levels of procurement provided in
Para 112 of the Manual on FM&P
Levels of procurement
School/Community/ KGBV
CRC / BRC
District
State
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School/KGBV level











All civil works, except buildings for Residential Schools/Hostels and
KGBV.
Furniture to Govt. UPS
Library Books for schools
Teaching Learning Material
School grant.
Maintenance grant.
Teaching Learning Equipment
REMS
Learning Enhancement Programme (LEP).
Items required for KGBV.
Uniform
Special Training related Items

TLM, Contingency etc.
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CRC/BRC level

Furniture/ equipment/computer etc.

Office contingencies

Teaching Learning Material

Teacher Training

Community Training

Civil works for construction of BRC, augmentation of BRC
and CRC

Maintenance of BRC and CRC

Printing work

REMS
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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)

Construction of Residential Schools/Hostel and KGBV
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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).
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Method of Procurement
Method of
Procurement
Open
Tender
Limited
Tender
Single
Tender
Procurement
without tender
/ quotation
Procurement
through
communities
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OPEN TENDER
Meaning
•
•
•
•
Competitive bidding procedure and is the most efficient and
economic way of procuring goods or works.
Provides for adequate competition in order to ensure reasonable
prices.
Ensures transparency and equal opportunity to all.
The methods used in the evaluation and the award of contracts
are made known to all bidders.
Items covered

Civil works construction of BRC, Residential schools / Hostel,
KGBV, SIEMAT and any other civil works specifically approved
by Project Approval Board through contractors.

Goods
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OPEN TENDER
Steps

Preparation of tender documents

Notification / Advertisement;

Issue of tender documents;

Pre-bid Conference

Submission of tender documents;

Public opening of tender;

Evaluation;

Selection of lowest evaluated responsive bidder based on
post qualification;

Negotiation with L-1 (if necessary)

Contract award; and

Contract performance
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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.
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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.
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
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.
other
levies
payable
by
the
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
The prices are quoted in Indian Rupee.
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;
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
Obtaining orders of competent authority for
supply;
placing orders for

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.

The financial ceiling prescribed for limited tender shall be
applicable for Rate contracts of DGS & D and Rate contracts of
State Governments.
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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.
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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
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
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.
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Service Contract
Considerations
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Service Contract
Selection process











Preparation of Terms of Reference
Preparation of Cost Estimate and Budget
Advertisement, seeking Expression of Interest (EOI)
short listing of consultants/firms based on EOI
Issue of Request for Proposal (RFP) to short listed
Consultants/firms.
Receipt of RFP in two envelope system, technical and financial
proposals separately.
Formation of Evaluation Committee
Evaluation of Technical proposal and assign individual mark by
each member on the basis of responsiveness to the TOR
Open the Financial proposals of the qualifying Consultants
publicly in the presence of the Consultants/representatives
Final discussions including negotiations
Award of contract
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Non-Government Organizations

Preparation of Terms of Reference

Publication of advertisement

Formation of Evaluation Committee

Short-listing of NGOs on the basis of specifications and scope of
the work specified in the TOR.

Desk appraisal and if found suitable, field appraisal by the
Evaluation Committee

Recommendation by the Evaluation Committee for the selection
of NGOs to the Grant-in-Aid Committee.

Approval by Grant-in-Aid Committee based on the report of the
Evaluation Committee on the desk and field appraisal.
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