Summary of Guidelines for Goverment Procurements

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Summary of Guidelines for Goverment Procurements

Guidelines for buyers on the essentials of purchase procedures may help Government offices, public sector organizations, autonomous Government bodies, and private sector companies and firms. These are:

1. Ensure that a budget is available for purchase or works. Without a budget provision, it is not permissible in Government to make purchases.

2. Prepare a reasonable estimate of the total cost before inviting bids. It helps in checking whether the bids are a fair reflection of the market or not.

3. Write down the evaluation criterion of bids and disclose it in the bidding documents. This helps a buyer to retain clarity for itself. It also increase the scope of competition as the honesty of the buyer is apparent.

4. Write clear, precise and airtight specifications. These should not be such as to restrict competition. This will also ensure good competition, and thus an assurance of reasonably competitive rates.

5. Be willing to answer questions from the bidders; and inform all the buyers of the bidding documents about the questions received and the clarifications given without disclosing the identity of the persons asking the questions. It is another requirement of maintaining transparency.

6. Use standard bidding documents, as far as possible. Make suitable changes with approval of the competent authorities, generally those from finance and law.

7. Give adequate publicity to the invitation for bids. In limited bid enquires, invitations should be sent to the suppliers. The suppliers should be genuine and not those who exist only on paper.

8. Assess carefully the competence of a bidder to supply the goods or complete the works and to maintain the required quality.

9. Assess the available bid capacity of contractors for civil works. Include this criterion in the bidding documents. It is unlikely that a contractor will be able to fulfil its obligations if it accepts contracts beyond its capacity.

10. Provide adequate time for bid preparation and also for the bid valdity period.

11. Place an order for supply of goods or works only after coming to an agreement on prices, specifications and delivery.

12. A purchase order must be in writing. In Government, oral orders have no legal backing.

13. Government offices must make it clear that the purchase is on behalf of the President of India/Governor of a State.

14. Specifications and payment terms should not be relaxed after the agreement is entered into. The entire competition is based on the terms disclosed at the time of inviting bids.

15. Decide whether the grace period of 21 days is to be allowed for the delivery of goods. If not, then this clause should be deleted from the standard terms and conditions of invitation to bids when adopting the DGS&D procedures.

16. Disclose inspection and test methods in the bidding documents. Do not leave it to the discretion of the inspecting agency. Non-disclosure shows unwillingness to think hard about ensuring quality products.

17. The inspection of goods and works should be planned in advance and faithfully carried out.

18. Pay the suppliers promptly. A buyer may expect better rates if it has a good reputation for making timely payments.

19. For ethical reasons, valuable gifts should not be accepted from suppliers or contractors.

20. Compare the final cost of goods at the destination, taking into account all the taxes payable.

21. Take special care of bank guarantees. These have an uncanny habit of lapsing owing to delays in enforcing them.

22. If feasible, insist on a performance security. It is a much better option than the clause on liquidated damages.

23. No contract involving an uncertain or indefinite liability or any condition or an unusual character should be entered into without the previous consent of the competent financial authority.

24. Provision must be made in contracts for safeguarding Government property entrusted to a contractor.

25. In entering into long term agreement or contracts considerations should given to the desirability of providing for the Buyer's unconditional power to cancel the agreement at any time after the expiry of six months' notice to that effect.

26. The Auditor-General and under his direction, other audit authorities have power to examine contracts and to bring before the Public Accounts Committee any cases where competitive tenders have not been sought, or where high tenders have been accepted, or where other irregularities in procedure have come to light.

Last Updated ( Tuesday, 19 August 2014 05:57 )