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
PROCUREMENT PLAN
Annual Procurement Plan
• The meeting of the PAB for consideration of
AWP&B for 2014-15 is over and PAB Minutes
has been. uploaded and issued
• States are requested to o prepare the Annual
Procurement Plan for 2014-15 immediately on
receipt of the Minutes. And upload them by
15/6/2014
PROCUREMENT PLAN
Six Stages are prescribed for Goods and nine stages for Civil Works
GOODS
1. Preparation of specifications and bids document.
2. Issue of Invitation to bid.
3. Open bids
4. Evaluation
5. Award Contracts
6. Delivery
CIVIL WORKS
1. Preparation of specifications and bids document.
2. Issue of Invitation to bid.
3. Open bids
4. Evaluation of bids
5. Award of contracts
6. Construction 25% complete
7. Construction 50% complete
8. Construction 75% complete
9. Construction 100% complete
.
PROCUREMENT PLAN
Process
The flowchart below shows each of the stages in the procurement
process
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.
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.
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.
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 (www.rte-ssaprocurement.com). The
site is being maintained and hosted through an
Internet Service Provider, KITINFINET.
Procurement Thresholds (WB)
Thresholds for various Methods of Procurement
Category
Works
Method of Procurement
Open Tender
Limited Tender
Single Tender
Procurement through Communities
Goods except IT Equipment and Open Tender
Textbooks (1)
Limited Tender
(also applicable for non-intellectual
services and the services contracted
Single Tender
on the basis of performance of
measurable physical outputs)
Threshold (US$ Equivalent)
Up to 500,000 (Up to 800,000 only
for SIEMAT buildings)
Up to 75,000
Up to 75,000
Up to 75,000
Up to 500,000
Up to 50,000
Up to 50,000
Goods (only Textbooks) (2)
Open Tender
Single Tender
Up to 2,000,000
Up to 1,000,000
Goods (only IT Equipment)
Open Tender
Up to 3,000,000
Consultants’ Services
Limited Tender
Single Tender
As per FMP Manual
Up to 50,000
Up to 30,000
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.
PROCUREMENT ISSUES
AREAS OF CONCERN
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Procurement procedures not being followed
Non-Use of CAD
Maintenance and Non-Production of Records
Procurement without quotation