Manual for Procurement of Goods Cover



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Manual
for
ProcureMent
of Goods
2017
Government of India
Ministry of finance
department of expenditure



Foreword
1. Government organizations procure a wide variety of goods and services and undertake execution of works in pursuance of their duties and responsibilities. With a view to improving transparency indecision making in public procurement and reducing the scope for subjectivity, Department of Expenditure in 2006 had prepared a set of three Manuals on Policies and Procedures for Procurement of Goods, Works and hiring of Consultants, in conformity with the General Financial Rules (GFR), 2005. Over the years, these Manuals have served as a guidebook for procurement.
2. In the last few years, the Government of India has issued new instructions in the domain of public procurement. Some of these important changes include introduction of Central Public Procurement Portal (CPPP), Government e-Marketplace (GeM), preferential market access for micro and small enterprises, preference for domestic manufacturers of electronic goods, inclusion of integrity pact, etc. The GFR has been revised comprehensively in March 2017 covering inter-alia these set of new instructions. Consequently the Manual of Procurement too has been revised after a decade and within a month of the release of GFR 2017.
3. The new Manual on Procurement of Goods has been extensively revised in keeping with
GFR 2017 and in consonance with the fundamental principles of transparency, fairness, competition, economy, efficiency and accountability. Efforts have been made to coverall major aspects of procurement in this Manual in a user-friendly manner. The manual is the outcome of extensive consultations in two stages with Ministries/Departments/PSUs and other organizations over a period of six months. Manuals issued by this Department are to betaken as generic guidelines, which have to be necessarily broad in nature. Ministries/Departments are advised to supplement this manual to suit their local/specialized needs, by issuing their own detailed manuals (including customized formats Standard Bidding Documents and Schedule of Procurement Powers to serve as detailed instructions for their own procuring officers. I would like to acknowledge the lead taken by Dr. Vivek Joshi, Joint Secretary, DoE and dedicated efforts of Shri Sanjay Aggarwal, Director (PPD), Shri Vinayak T. Likhar, Under
Secretary(PPD) and Shri Girish Bhatnagar, Consultant (Public Procurement) in revision of this Manual. I would also like to thank Ministries, Departments, other organisations and individuals who reviewed the drafts of the Manual and provided their valuable inputs.
6. I hope that this Manual would be useful to procuring officials working in various Ministries/
Departments as operating instructions and will bring about greater transparency and predictability in government procedures and help in improving the ease of doing Business with Government.
(Ashok Lavasa)
Date : 05.04.2017 Finance Secretary





Manual for procurement of goods 2017
Ministry of finance
Fundamental principles of public procurement
Professionalism principle
Public accountability principle
Public procurement infrastructure at the centre
Pharmaceuticals from pharmaceutical cpses
The expression/description of the need
Procurement planning
Grades of debarment of suppliers
Global tender enquiry (gte)
Proprietary article certificate
Pre-qualification criteria:
Government e-market place (gem):
Pilot phase of gem
Purchase preference policies
Procedures to be followed during bid opening
Payment clause
Payment to suppliers
Terms of payment for domestic goods
Terms of payment for imported goods
Firm price vis-à-vis variable price
Taxes, duties and levies
Payments to suppliers
Preparation and vetting of comparative statement
Preliminary examination
Handling procurement in urgencies/emergencies and disaster management
Payments to the contractor and handling of securities
Preliminary inspection on receipt
Pre-dispatch inspection
Joint inspection on complaint
Formulation and placement of contracts
Total cost of ownership
Procurement price.
Free consent of both parties
Time at which property in goods is transferred
Provision of the act regarding statutory variations in taxes and duties
Fast-tracking arbitration in india
Powers of interim relief in section 9 also to arbitral tribunal
Practicesi) the preamble of the competition act, 2002
Publishing of tenders:
Payment of balance sale value (bsv)
Procurement key performance indices and management reporting



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