Page 53 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes organizations. The specifications so worked out should meet the basic needs of the
organization without including superfluous and non-essential features, which may result
in unwarranted expenditure. Care should also be taken to avoid purchasing quantities in
excess of requirement to avoid inventory carrying costs.
 Offers should be invited following a fair, transparent and reasonable procedure.

 The procuring authority should be satisfied that the selected offer adequately meets the
requirement in all respects.
 The procuring authority should satisfy itself that the price of the selected offer is reasonable
and consistent with the quality required.
 At each stage of procurement the concerned procuring authority must place on record, in
precise terms, the considerations which weighed with it while taking the procurement
decision.

4.6.1 Authorities Competent to Purchase Goods and their Purchase Powers

 An authority which is competent to incur contingent expenditure may sanction the purchase
of goods required for use in public service in accordance with schedule V of the Delegation
of Financial Rules, 1978, following the general procedure contained in this Manual.

 A demand should not be split into small quantities for the sole purpose of avoiding the
necessity of taking approval of the higher authority required for sanctioning the purchase
of the original demand.
4.6.2 Purchase through a Central Purchase Organization

In case a Ministry/Department does not have the required expertise or manpower, it may send
its indent to the Central Purchase Organization (e.g., DGS&D) with the approval of its Secretary.
The indent form to be utilized for this purpose will be as per the standard form evolved by the
Central Purchase Organization.
Depending on the nature of the required goods, the quantity and value involved and the period
of supply, the purchase organization is to decide the appropriate mode of purchase. The various
modes of purchase to be adopted for this purpose are indicated in the subsequent paragraphs.
4.6.3 Approval of the Competent Authority to the Purchase

Demand for Goods should not be divided into smaller quantities for making piece meal purchases
for the sole purpose of avoiding the necessity of obtaining the sanction of higher authority
required with reference to the estimated value of the total demand.

4.6.4 Purchase of Goods without Quotation

Purchase of goods up to a value of ` 15,000 (Rupees Fifteen Thousand only) on each occasion may
be made without inviting quotations/bids by the competent authority on the basis of a certificate
to be recorded by him in the following format:
I, ________ am personally satisfied that these goods purchased are of the requisite quality and
specification and have been purchased from a reliable supplier at a reasonable price.

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