1. 1 Training on Procurement Procedure 23 rd Review Meeting of State FCs- Bhopal (5.11.2009) Annexure ‘W’

2. 2 Procurement Procedure under SSA / NPEGEL/KGBV

3. 3 PROCUREMENT Chapter IX of the Manual on FM&P provides procurement procedure. Strictly follow the levels of procurement provided in Para 107 of FM&P  School / Community level  CRC / BRC level  District level  State level Prepare the Procurement Plan every year and upload in SSA’s website. Strictly follow financial ceiling prescribed for each method.

4. 4 1.Open Tender (Para 110 of the Manual) 2.Limited Tender (Para 113 of the Manual) 3.Single Tender (Para 114 of the Manual) 4.Procurement without tender / quotation (Para 115 of the Manual) 5.Procurement through communities (Para 116 of the Manual) Method of Procurement

5. 5 Procurement Under External Funding Consequent to bringing SSA under external funding, MHRD issued detailed Instructions to States/UTs on 17 th September, 2008. No change in method of procurement. Strictly follow Procurement procedures prescribed in Chapter-IX of the Manual. However, follow the financial ceilings indicated below against each for all procurement of works, goods and services.

6. 6 Procurement 1. Open Tender (Para 110-112 of the Manual) Goods, excluding Information Technology Equipment, estimated to cost the equivalent of more than US $ 50,000 but not more than US $ 300,000 per contract and works estimated to cost the equivalent of more than US $ 40,000 but not more than US $ 300,000 per contract. Textbooks estimated to cost the equivalent of upto US $ 1 million per contract. Works for SIEMAT estimated to cost the equivalent of upto US$ 800,000 per contract. Information Technology Equipment estimated to cost the equivalent of more than US $ 50,000 but not more than US $ 4.00 million per contract.

7. 7 2. Limited Tender (Para 113 of the Manual) Goods including Information Technology Equipment, estimated to cost the equivalent upto US $ 50,000 or less per contract. Works estimated to cost the equivalent of US $ 50,000 or less per contract.

8. 8 3. Single Tender (Para 114 of the Manual) Goods estimated to cost the equivalent of less than US $ 30,000 per contract and which are specifically certified as of proprietary nature or of which only a particular firm is the manufacturer; Textbooks estimated to cost the equivalent of US $ 500,000 or less per contract. Books, teaching materials, school facility improvement, hiring of vehicles and operation and maintenance of equipment estimated to cost the equivalent of less than US $ 30,000 per contract. Works estimated to cost the equivalent of US $ 40,000 or less per contract (single tender method i.e. direct contract without competition).

9. 9 4. Procurement through communities (Para 116 of the Manual) Works estimated to cost the equivalent of US $ 40,000 or less per contract. Works estimated to cost the equivalent of US $ 20,000 or less per contract may be procured under the unit/piece rate through qualified contractors or registered non-governmental organisation, other beneficiary association or Village Panchayats.

10. 10 5. Procurement of goods more than the above financial ceiling not procured using the proceeds of credit Goods, other than Information Technology Equipment, estimated to cost the equivalent of more than US $ 300,000 per contract Works other than SIEMAT estimated to cost the equivalent of more than US $ 300,000 per contract Works for SIEMAT estimated to cost the equivalent of more than US $ 800,000 per contract Information Technology Equipment estimated to cost the equivalent of more than US $ 4.0 million per contract shall be procured in accordance with such methods as may be established by the Association.

11. 11 6. Employment of Consultants All consulting services to be financed out of the proceeds of the Credit and estimated to cost equivalent of US$ 200,000 or less per contract shall be procured in accordance with Para 118 - 119 of Chapter IX of the Manual on Financial Management and Procurement. Consultancy services estimates to cost equivalent of more than US$ 200,000 per contract shall not be procured using the proceeds of this credit.

12. 12 OPEN TENDER Items covered: Civil works construction of BRC, Hostel, KGBV, SIEMAT and goods. Steps Notification / Advertising; Issue of tender documents; Submission of tender documents; Public opening of tender; Evaluation; Selection of lowest evaluated responsive tender based on post qualification; Negotiation with L-1 (if necessary) Contract award; and Contract performance

13. 13 Prescribe Standard bidding documents covering the following: Documents user friendly, self contained, comprehensive, unambiguous and relevant to the objective of purchase. Bid form and price schedule Technical specifications Post qualification criteria Validity period Earnest money Pre-bid conference Submission of bids Opening of bids Security deposit Retention money Payment terms Liquidated damages

14. 14 Evaluation criteria Conditions of contract Negotiation with L-1 Award of contracts Repeat Orders Quantity as per State procedure Place order within one month from the date of last supply Prices have since not reduced Purchases not made on urgent basis Rejection of all bids Lack of competition Tenders not substantially responsive Obtain the approval of competent authority

15. 15 LIMITED TENDER Items covered: goods including books, teaching learning materials, school equipment, hiring of vehicles, and operation and maintenance of equipment Steps Identifying items; Laying down of specifications; Estimating total numbers and costs of items; Identifying likely agencies borne on the approved list of contractors/ suppliers; Obtaining approvals of competent authority; Issuing letters of invitation;

16. 16 Processing quotations received; Obtaining orders of competent authority for placing orders for supply; Issuing letters placing orders for supply and delivery period; Ensuring inspection; Ensuring timely supply: and Making payments after delivery in satisfactory condition.

17. 17 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. Rate contracts of DGS & D and Rate contracts of State Governments are appropriate method under single tender system.

18. 18 PROCUREMENT 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 PROCUREMENT THROUGH COMMUNITIES Construction of all civil works except, BRC 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

19. 19 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.

20. 20 Suggested advance payments based on the certificate issued by the Supervising Engineer Advance (mobilisation advance upon start up of the work and on reaching lintel level) : 75% of total cost Plastering and completion of work : 25% of total cost School toilet and other repair works Advance (mobilisation advance upon start up of the work) : 75% of total cost Plastering and completion of work : 25% of total cost

21. 21 Procurement of major items Textbooks – Single Tender (Textbooks Corporation, NCERT etc) and Open Tender IT Equipment – Limited Tender (State approved vendors) State Electronic Corporation/IT Deptt/other State agencies provided they follow State procedure and Manual provisions Open Tender and e-procurement Printing work – Rate Contract approved by State Government, Limited Tender and Open Tender

22. 22 Service Contract Preparation of Terms of Reference Preparation of Cost Estimate and Budget Advertising Preparation of short list of consultants Receipt of proposals Formation of Evaluation Committee Evaluation of Technical and Financial proposals Final discussions including negotiations and award of the contract

23. 23 Non-Government Organizations Preparation of Terms of Reference Advertising Formation of Evaluation Committee Selection of NGOs Approval by Grant-in-Aid Committee

24. 24 Post Review by Government of India Mis-procurement Complaint Handling Mechanism

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