Transparency: Transparency is letting everyone know,not only the facts and figures of procurement but also the mechanisms and procedures followed. Transparency

Government procurement, also called public tendering or public procurement, is the procurement of works, goods and services on behalf of a public authority, such as a government agency. A well functioning procurement system can be said to be in place if it achieves the objectives of transparency, competition, economy, efficiency, fairness and accountability

• Government procurement, also called public tendering or public procurement, is the procurement of works, goods and services on behalf of a public authority, such as a government agency. A well functioning procurement system can be said to be in place if it achieves the objectives of transparency, competition, economy, efficiency, fairness and accountability

Transparency: Transparency is letting everyone know ,not only the facts and figures of procurement but also the mechanisms and procedures followed.

• Transparency: Transparency is letting everyone know ,not only the facts and figures of procurement but also the mechanisms and procedures followed.

• Equal Opportunity and Fairness: Being objective and ensuring impartial, unbiased and equitable treatment of tenderers by conforming with rules and standards free from discrimination and dishonesty.

Economy: Achieving economy is getting the right thing at the right price -Value for Money (vfm)

• Economy: Achieving economy is getting the right thing at the right price -Value for Money (vfm)

• Efficiency: With economy in price and choice of item, ensuring its arrival in the right place at the right time for its intended use is Efficiency -Money for Value(mfv)

Procurement of Goods and Materials

• Procurement of Goods and Materials

• Procurement of Services

• Procurement for Works

• SEPARATE PLANNING FOR PROCUREMENT OF:

• GOODS

• II. CONSULTING SERVICES

• III. WORKS

Many organizations may execute all works departmentally following the prescribed norms for procurement of goods and materials

• Many organizations may execute all works departmentally following the prescribed norms for procurement of goods and materials

Where any organization holds the view after a resolution to the effect that its machinery is unable to undertake a given work of construction for infrastructural development requiring close technical supervision at multiple stages and the estimated project cost of the work , it may engage contractor for implementation of such project

• Where any organization holds the view after a resolution to the effect that its machinery is unable to undertake a given work of construction for infrastructural development requiring close technical supervision at multiple stages and the estimated project cost of the work , it may engage contractor for implementation of such project

Direct Purchase i.e. without quotation/tender

• Direct Purchase i.e. without quotation/tender

• Procurement by inviting quotation

• Procurement by inviting tender /bid

Purchases upto Rs. 10,000.00 may be made without any tender or quotation. The purchasing authority shall certify that the purchase has been made at reasonable market price in cases of purchase from the open market without tender / quotation.

• Purchases upto Rs. 10,000.00 may be made without any tender or quotation. The purchasing authority shall certify that the purchase has been made at reasonable market price in cases of purchase from the open market without tender / quotation.

• [Consult:10500-F & 5400-F(Y) Dated:19.11.2004&25.06.2012]

Purchase above Rs.10,000.00 and upto Rs.1,00,000.00 shall be made after inviting quotations from at least four reliable firms which shall be opened in presence of willing agents. In such cases of purchase by invitation of quotation, procurement shall be finalized on recommendation of Local Purchase Committee to be constituted in each office.

• Purchase above Rs.10,000.00 and upto Rs.1,00,000.00 shall be made after inviting quotations from at least four reliable firms which shall be opened in presence of willing agents. In such cases of purchase by invitation of quotation, procurement shall be finalized on recommendation of Local Purchase Committee to be constituted in each office.

• [Consult:10500-F & 5400-F(Y) Dated:19.11.2004&25.06.2012]

In respect of offices outside Kolkata, the notice for quotation shall be issued through the notice board of the concerned office, the offices of the District Magistrate and the Sub-Divisional Officer and the Panchayat, Municipality of that locality. In Kolkata, such notice shall be circulated by displaying in the notice board of Local Bodies and by sending the same to suppliers, etc.

• In respect of offices outside Kolkata, the notice for quotation shall be issued through the notice board of the concerned office, the offices of the District Magistrate and the Sub-Divisional Officer and the Panchayat, Municipality of that locality. In Kolkata, such notice shall be circulated by displaying in the notice board of Local Bodies and by sending the same to suppliers, etc.

• [Consult:10500-F &5400-F(Y) Dated:19.11.2004&25.06.2012]

For the purpose of these guidelines, the words “bid” and “tender” shall have the same meaning. Subject to the special rules or order or procedure that may be prescribed by the Govt. in respect of a particular department, open tender shall invariably be invited for the supply of articles or stores or for execution of works and services worth Rs.1,00,000.00 or more.

• For the purpose of these guidelines, the words “bid” and “tender” shall have the same meaning. Subject to the special rules or order or procedure that may be prescribed by the Govt. in respect of a particular department, open tender shall invariably be invited for the supply of articles or stores or for execution of works and services worth Rs.1,00,000.00 or more.

• [Consult:10500-F &5400-F(Y) Dated:19.11.2004&25.06.2012]

The period before “calling for Tenders for price comparison” shall be treated as ‘Pre-tendering stage’. This stage involves:

• The period before “calling for Tenders for price comparison” shall be treated as ‘Pre-tendering stage’. This stage involves:

• Preparation of Estimates

• Vetting of Detailed Cost Estimates

• Administrative Approval

• Technical Sanction &

• Expenditure Sanction

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Prior to commencement of the procurement of goods or materials or works, the organization shall prepare detailed estimates on the basis of the current rate schedule or when such schedule is not available, on the basis of current market prices. The estimates will generally contain the following details:

• Prior to commencement of the procurement of goods or materials or works, the organization shall prepare detailed estimates on the basis of the current rate schedule or when such schedule is not available, on the basis of current market prices. The estimates will generally contain the following details:

Availability of land

• Availability of land

• Lead chart showing distance from where the material is to be brought

• Requirement of material and cost thereof based on current schedule of rates or when such schedule is not available, on the basis of current market rates

• Requirement of labour and expected man days

• Plan of the proposed construction/alteration of building/structure/civil works

• Contour Site Plan

• And other documents as may be necessary

The detailed cost estimate of work shall have to be sent for vetting by the empowered Engineer depending on the estimated value of the work. The estimates are to be revised as per the modifications made by the concerned engineer subject to budgetary allocation.

• The detailed cost estimate of work shall have to be sent for vetting by the empowered Engineer depending on the estimated value of the work. The estimates are to be revised as per the modifications made by the concerned engineer subject to budgetary allocation.

Application for Administrative Approval shall be submitted to the competent authority accompanied with a preliminary plan, information as to the site , and other details like cost-benefit ratio as may be necessary and the reasons thereof.

• Application for Administrative Approval shall be submitted to the competent authority accompanied with a preliminary plan, information as to the site , and other details like cost-benefit ratio as may be necessary and the reasons thereof.

For every work proposed to be carried out, except petty repairs, a detailed estimate shall be prepared for sanction by the competent authority. This sanction shall be known as Technical Sanction to the estimate.

• For every work proposed to be carried out, except petty repairs, a detailed estimate shall be prepared for sanction by the competent authority. This sanction shall be known as Technical Sanction to the estimate.

Expenditure Sanction means concurrence of the competent authority to the expenditure based on the technically vetted estimate or a rough cost estimate within the budgetary provisions of the relevant head.

• Expenditure Sanction means concurrence of the competent authority to the expenditure based on the technically vetted estimate or a rough cost estimate within the budgetary provisions of the relevant head.

A Tender Selection Committee with five to seven members consisting of two administrative officers, two technical officers and one financial expert may be constituted to finalize the tender.

• A Tender Selection Committee with five to seven members consisting of two administrative officers, two technical officers and one financial expert may be constituted to finalize the tender.

The Tender Selection Committee shall be responsible for preparing comparative statements of the valid tenders and make recommendations to the appropriate authority for final decision.

• The Tender Selection Committee shall be responsible for preparing comparative statements of the valid tenders and make recommendations to the appropriate authority for final decision.

Tender notice shall always be given due publication through the leading dailies in English, Hindi and Bengali. The use of intermediate general suppliers should be discouraged. Open tender for supply of articles or stores or for execution of works worth Rs.1,00,000.00 or more shall be invited in the following manner:

• Tender notice shall always be given due publication through the leading dailies in English, Hindi and Bengali. The use of intermediate general suppliers should be discouraged. Open tender for supply of articles or stores or for execution of works worth Rs.1,00,000.00 or more shall be invited in the following manner:

Brief referral advertisement will contain only certain title information such as name and location of the scheme, last date for submission of tender, names of the websites where details are available.

• Brief referral advertisement will contain only certain title information such as name and location of the scheme, last date for submission of tender, names of the websites where details are available.

The administrative departments are permitted to issue advertisements directly to the newspapers having sufficient circulation for the said purpose of procurements, wherever necessary, at the rates approved by the Information & Cultural Affairs Department, Govt. of West Bengal.

• The administrative departments are permitted to issue advertisements directly to the newspapers having sufficient circulation for the said purpose of procurements, wherever necessary, at the rates approved by the Information & Cultural Affairs Department, Govt. of West Bengal.

A minimum period as stated below shall be allowed for submission of tenders from the final publication date:

• A minimum period as stated below shall be allowed for submission of tenders from the final publication date:

For Tender Value of Rs. 50 lakhs and above, e-tendering through the centralized e-tender portal, wbtenders.gov.in is mandatory in addition to publication in print media.

• For Tender Value of Rs. 50 lakhs and above, e-tendering through the centralized e-tender portal, wbtenders.gov.in is mandatory in addition to publication in print media.

For high value purchase exceeding Rs.10,00,000.00 or for purchasing plant, machinery, etc. of complex and technical nature, bids may be invited in two parts under Two-Bid System.

• For high value purchase exceeding Rs.10,00,000.00 or for purchasing plant, machinery, etc. of complex and technical nature, bids may be invited in two parts under Two-Bid System.

Selection of agency should be made on the basis of at least three tenders which shall be opened in presence of the willing agents. If the number of tenders received is less than three, tender should be invited afresh.

• Selection of agency should be made on the basis of at least three tenders which shall be opened in presence of the willing agents. If the number of tenders received is less than three, tender should be invited afresh.

For high value purchase exceeding Rs.10 lakhs or for purchasing plant, machinery, equipment, etc. of complex and technical nature, bids shall be invited in two parts as under:

• For high value purchase exceeding Rs.10 lakhs or for purchasing plant, machinery, equipment, etc. of complex and technical nature, bids shall be invited in two parts as under:

• Technical Bid consisting of all technical details along with commercial terms and conditions &

• Financial Bid including item wise price for the items mentioned in the Technical Bid

The technical bid and the financial bid should be sealed by the bidder in separate cover duly super scribed and both the sealed covers are to be put in a bigger cover which should also be sealed and duly super scribed.

• The technical bid and the financial bid should be sealed by the bidder in separate cover duly super scribed and both the sealed covers are to be put in a bigger cover which should also be sealed and duly super scribed.

The technical bids shall be opened by the purchasing department/office at the first instance and evaluated by a competent committee or authority. Financial bid should not be opened until the technical bid is opened and assessed for selection of the qualified bidder.

• The technical bids shall be opened by the purchasing department/office at the first instance and evaluated by a competent committee or authority. Financial bid should not be opened until the technical bid is opened and assessed for selection of the qualified bidder.

At the second stage, financial bids of only the technically acceptable offers shall be opened for furnishing value and ranking before finalization and awarding of the contract. After evaluation, the lowest rate financial bid from amongst the technically qualified bidders shall be accepted.

• At the second stage, financial bids of only the technically acceptable offers shall be opened for furnishing value and ranking before finalization and awarding of the contract. After evaluation, the lowest rate financial bid from amongst the technically qualified bidders shall be accepted.

One Bid per Bidder:

• One Bid per Bidder:

• A Bidder who submits more than one Bid for one particular work will cause all such particular bids rejected and the Bidder shall be disqualified and his earnest money shall be forfeited.

•  

Bid Validity

• Bid Validity

• Bidders/tenderers shall be required to submit bids/tenders valid for a period specified in the Bidding Documents that shall be sufficient to enable the competent authorities to complete the comparison and evaluation of bids in order to award the contract within that period to the successful bidder.

Earnest Money

• Earnest Money

• A contractor intending to participate in the tender process shall deposit earnest money as provided for in the notice inviting tender. Earnest money shall be released to the unsuccessful tenderers/bidders, once the contract has been signed with the successful bidder.

Security Deposit

• Security Deposit

• The successful tenderer shall be required to execute a formal agreement in duplicate within the time stipulated in the Bidding Document, failing which his tender shall liable to be rejected and his earnest money forfeited.  

Contract is a legal document between the two parties for carrying out the described work or supplies.

• Contract is a legal document between the two parties for carrying out the described work or supplies.

• It specifies clearly the obligations to be performed by both the parties.

• It also species the compensation to be paid by the defaulting party to the other affected party.

Security Deposit

• Security Deposit

• On execution of such agreement he shall be required to deposit in one or more installments as may be specified in the agreement, security money of such amount which together with the earnest money already deposited, shall amount to ten per cent of the total value of the work as quoted by him.

Security Deposit:

• Security Deposit:

• Security Deposit may also be deducted from the payments due from time to time on account of work done and supplies made under a contract in such manner that final security deposit comes to ten percent of the value of work done or supplied with.

The Security Deposit of a contractor shall not be refunded till the final bill for the relative work for supplies has been prepared and passed for payment, or the period specified in the agreement in this behalf expires, whichever is later.

• The Security Deposit of a contractor shall not be refunded till the final bill for the relative work for supplies has been prepared and passed for payment, or the period specified in the agreement in this behalf expires, whichever is later.

All supply orders or work orders, after acceptance of quotation/ tenders, shall be issued under the signature of any official authorized by the GTA in this behalf. The said official shall sign such orders after being satisfied that all formalities including deposit of earnest money have been completed and required tax clearance certificates have been furnished by the tenderer, or if not furnished, the reason or reasons for non-submission have been explained and the explanations are acceptable.

• All supply orders or work orders, after acceptance of quotation/ tenders, shall be issued under the signature of any official authorized by the GTA in this behalf. The said official shall sign such orders after being satisfied that all formalities including deposit of earnest money have been completed and required tax clearance certificates have been furnished by the tenderer, or if not furnished, the reason or reasons for non-submission have been explained and the explanations are acceptable.

Consult Finance Department, Audit Branch Memo No:3739-F(Y) Dated:3.05.2012 & 6424-F(Y) Dated: 25.07.2012

• Consult Finance Department, Audit Branch Memo No:3739-F(Y) Dated:3.05.2012 & 6424-F(Y) Dated: 25.07.2012

Discrimination in issue of tender schedules

• Discrimination in issue of tender schedules

• Physical threats to bidders

• Cartel formation - suppresses competition

• Pressures on dept officials

• Inordinate delays in tender finalisation

• Human interface – Manipulations, tampering

• Inadequate transparency

• Adverse Press coverage on Tender fracas

Institutional compliance

• Institutional compliance

• Institutional Memory

• Single Stop Shop

• Increased price transparency

• Human touch points decreased

• Increases internal efficiency

• Best value for money

• Equal opportunity ushers economic development

5.Whether the overall procurement was done within a reasonable time?

• 5.Whether the overall procurement was done within a reasonable time?

• 6.Whether there was any avoidable delay at any stage/ stages of the procurement process?

• 7.Whether the necessary approval(s) was taken from appropriate authority wherever required?

8.Whether proper and adequate documents were maintained?

• 8.Whether proper and adequate documents were maintained?

• 9. Whether the pre-qualification screening for issue of tender documents was done properly and in a fair manner?

• 10.Whether the technical and financial evaluation was done properly and in fair manner?

11. Whether the contracted firm, supplied the goods or executed the work as per the quality, quantity and price indicated in the contract agreement/ supply order?

• 11. Whether the contracted firm, supplied the goods or executed the work as per the quality, quantity and price indicated in the contract agreement/ supply order?

• 12.Whether the goods were supplied or works executed in time and properly recorded in measurement books and stock/works registers after inspection?

13. whether the payment was made to the supplier/ contractor within the time frames indicated in the contracts? If not, reasons for delay.

• 13. whether the payment was made to the supplier/ contractor within the time frames indicated in the contracts? If not, reasons for delay.

• 14. Whether the EMDs and securities were returned within the time frames indicated in the contracts? If not, reasons for delay.