Page 54 - DMGT525_MATERIALS_MANAGEMENT

Unit 4: Purchasing Management

4.6.5 Purchase of Goods by Purchase Committee Notes

Purchase of goods costing above ` 15,000 (Rupees Fifteen Thousand) and up to ` 1,00,000 (Rupees
One lakh) on each occasion may be made on the recommendations of a duly constituted Local
Purchase Committee consisting of three members of an appropriate level as decided by the
Head of Department. The committee will survey the market to ascertain the reasonableness of
rate, quality and specifications and identify the appropriate supplier. Before recommending
placement of the purchase order the members of the committee will jointly record a certificate
as under:
Certified that we ________________, members of the purchase committee are jointly and individually
satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the
prevailing market rate and the supplier recommended is reliable and competent to supply the goods in
question.

4.6.6 Purchase of Rate Contracted Goods

The Central Purchase Organization (e.g. DGS&D) will conclude rate contracts with the registered
suppliers, for goods and items of standards types which are identified as common user items
and are needed on recurring basis by various Ministries/Departments. The Central Purchase
Organization (e.g. DGS&D) is to post the specifications, prices and other salient details of different
rate contracted items, appropriately updated, on its website for use by the procuring Ministries/
Departments. The Ministries/Departments are to operate those rate contracts to the maximum
extent possible. In case a Ministry/Department directly procures Central Purchase Organization’s
(e.g. DGS&D’s) rate contracted goods from suppliers, the prices to be paid for such goods shall
not exceed those stipulated in the rate contract and the other salient terms and conditions of the
purchase should be in line with those specified in the rate contract. The Ministry/Department
shall make its own arrangement for inspection and testing of such goods where required.

4.6.7 E-Procurement

Purchase of goods through electronic mode of interface with tenderers and IT enabled
management of the entire procurement process (notice inviting tenders, supply of tender
documents, receipt of bids, evaluation of bids, award of contract, and execution of contract
through systematic enforcement of its various clauses and tracking of claims, counterclaims and
payments) is gradually gaining popularity. In order to cut down transaction costs and improve
efficiency and transparency, the Government aims to make it mandatory for all the Ministries/
Departments including the Central Public Sector Undertakings under their administrative control
to conduct all their procurements electronically beyond 31st December, 2006. The Ministries/
Departments have been advised to fix appropriate cut-off points in terms of the size of
procurement to switch over to e-procurement. The Director General (Supplies & Disposal) has
made significant progress in this direction and the National Informatics Centre is engaged in
pilot projects to design a secure IT solution addressing concerns like encryption/decryption of
bids, digital signatures, secure payment gateways, date/time stamp for activities, access control
etc. The Ministries/Departments have already been directed to publicize all their tenders on
their websites as the first step towards full-fledged e-procurement. The Ministries/Departments
are advised to proactively engage themselves in articulating user needs in the development of
IT systems for e-procurement. The system should be secure, capable of maintaining complete
confidentiality at appropriate stages of the bidding process, so that the tenderers feel confidence
in electronically transmitting their queries and bids.

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