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Procurement Procedure in SSA Technical Support Group, SSA. Procurement Procedure. Which Procurement procedure is followed in SSA?
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Procurement Procedure in SSA Technical Support Group, SSA
Procurement Procedure Which Procurement procedure is followed in SSA? It is mandatory to follow the procurement procedure prescribed in Chapter IX of the Manual on Financial Management and Procurement by all including the procurement agencies who are procuring for SSA. Is it permissible to follow the State Procurement Procedure under SSA? No. The procurement procedure prescribed in the FM&P Manual is to be followed. 3. Do SSA provide any exemption to SSI Units, Micro & Small Enterprises, Khadi, Handicrafts and other such units for free issue of tender documents, payment of earnest money and security deposit, price preference etc.? No. The SSA procurement procedure does not give any exemption to any such units. 4. Which financial ceiling is followed for each method of procurement? The State Government prescribed financial ceiling is followed for various method of procurement unless otherwise prescribed by MHRD.
Procurement Financial Ceiling • 5. Which financial ceiling for procurement shall prevail when the financial ceiling prescribed by MHRD is in force? • The financial ceiling’s prescribed by MHRD shall prevail over the State financial ceiling. • 6. What is the existing financial ceiling prescribed for each method of procurement?
Procurement Financial Ceiling 7. Is it in order, if school equipment valued at Rs. 10 lakh was procured under open tender contract while MHRD financial ceiling is in force? Yes. States can resort to open tender system even the value is less than the prescribed minimum financial limit. However, it should be ensured that the prescribed upper ceiling is not exceeded. 8. Is it permissible to purchase school bags for Rs. 4.5 crore under one open tender contract while MHRD financial ceiling is in force? No. Since the upper ceiling prescribed for goods was Rs. 1.5 crore under open tender, the procurement is to be viewed as mis-procurement. 9. Is it permissible to purchase furniture for Rs. 20 lakh under single tender while MHRD financial ceiling is in force? No. Since the upper ceiling prescribed for goods was Rs. 15 lakh under single tender, the procurement is to be viewed as mis-procurement. 10. Is it permissible to purchase computers for Rs. 60 lakh under two limited tender contracts at a time while MHRD financial ceiling is in force? No. This involved splitting of requirement to avoid open tender method, as the upper ceiling limited tender is Rs. 25 lakh per contract
Level of Procurement 11. What are the three important points to be kept in view while resorting to procurement under SSA? 1. Availability of sufficient budget provision. 2. Comparison of competitive price. 3. Decentralized procurement following the level of procurement prescribed in the Manual 12. Indicate the level of procurement for the following items: 1. Uniform 2. Furniture for UPS 3. Library books for upper primary schools SMC/VEC 4. Computer for upper primary schools. 5. Textbooks 6. Aids and Appliances for CWSN District / State 7. Engagement of experts/resource persons 8. Engagement of NGOs State
Procurement Plan 13. Is it necessary to prepare Procurement Plan every year? Yes. It is necessary to prepare an Annual Procurement Plan immediately on receipt of the PAB Minutes and upload on the State SSA’s Website. 14. What are the important points to be kept in view while preparing the annual procurement plan? (i) Use the prescribed format prescribed by MHRD separately for goods, works and services; (ii) Indicate brief description of goods/works/services; (iii) Indicate quantity; (iv) Indicate method of procurement; (v) Prepare contract-wise taking into account a financial ceiling for each method of procurement. (vi) Indicate estimated cost; (vii) Indicate month-wise action as given in the foot-note of the format for each category. 15. Is it necessary to send an intimation to MHRD of having uploaded the Annual Procurement Plan on your Website? Yes. It is necessary to intimate the MHRD of having uploaded the Annual Procurement Plan on your Website.
Method of Procurement • 16. What are the different methods of procurement followed in SSA? • The methods of procurement followed in SSA are: - • (i) Open tender • (ii) Limited tender • (iii) Single Tender • (iv) Without tender / quotation • (v) Through communities • 17. Explain the various steps involved in Procurement under Open Tender? • (i) Preparation of tender documents • (ii) Notification / Advertisement; • (iii) Issue of tender documents; • (iv) Pre-bid Conference • (v) Submission of tender documents; • (vi) Public opening of tender; • (vii) Evaluation; • (viii) Selection of lowest evaluated responsive bidder based on post qualification; • (ix) Negotiation with L-1 (if necessary)
Method of Procurement • (x) Contract award; and • (xi) Contract performance • 18. Which standard bidding documents is to be used? • (i) The State Government’s standard bidding documents is to be used. • (ii) Suitable modification, if necessary, may be carried out. • 19. Is it necessary to fix a price for the bidding documents? • Yes. A reasonable price is to be charged from the prospective bidders for the bidding documents. • 20. How the advertisement for open tender notified? • (i) Invitation to bid to be published in newspapers, and at least in one national English daily, if value is more than Rs. 20 lakh. • (ii) While a gist of the notification is published in the news paper detailed notification be uploaded on State SSA’s website. • What are the points to be covered in the notification? • Cost of bidding documents and mode of payment • Details of goods / equipment /works, quantity, delivery/ completion date • Date of commencement and last date for sale of bidding documents
Method of Procurement • (iv) Last date and time for receipt of bids • (v) Time and date of opening of bids • (vi) Place of opening of bids • (vii) Address for communication • (viii)Earnest Money and its mode of payment • 22. Indicate the tendering period for an open tender contract.? • Not less than 30 days from the date of sale of tender documents • What should be the date of sale of bid documents in case the notification was issued on 10-7-2012? • Sale of bid documents should commence on 11-7-2012. • 24. What should be the last date of sale of bid documents in the above case? • The closing date for the sale of documents should be 8-8-2012, i.e. one day before the last date for receipt of bid documents. • Supplier X has purchased the bidding documents but the same was submitted by supplier Y in his name. Is it acceptable? • Since the bidding documents are not transferrable, this is not acceptable.
Earnest Money Deposit • 26. Indicate the earnest money deposit required for an open tender contract of estimated value of Rs. 20 crore? • Earnest money is calculated at 2% of the estimated contract value and it works out to Rs. 40 lakh. • 27. Indicate the validity period of the earnest money deposit in the case of bid valid for 90 days and the bid opening is 9-8-2012? • The validity period of the earnest money deposit should be upto 45 days beyond the validity period of the tender. In this case, 90 days expires on 6-11-2012 and 45 days beyond this period is 21-12-2012, i.e. 135 days from the opening of bid. • 28. In the above case, supplier A has submitted the earnest money deposit of Rs. 39.99 lakh valid upto 20-12-2012. How do you deal with it? • Since the earnest money deposit is required for Rs. 40 lakh and valid upto 21-12-2012, his bid is to be rejected as non-responsive. • In a case of not agreeing to the extension of bid validity period by the supplier, the purchaser has forfeited the earnest money deposit. Is it in order? • No. In such cases the earnest money deposit cannot be forfeited.
Technical Specifications • Supplier B has refused the arithmetical corrections carried out at the time of evaluation and his earnest money deposit was forfeited. Is it correct? • Yes. In such cases the earnest money deposit is to be forfeited. • 31. The purchaser has deviated the specifications for the purchase of computers after the opening of tenders. Is it correct? • No. Deviations can not be allowed after opening of tenders. • 32. Whether brand names can be quoted in technical specifications in the bidding documents? • Normally use of brand names in technical specifications should be avoided. However, if brand names are used in technical specifications, the word “or equivalent of the same” should be indicated.
Technical Specifications • 33. What action is to be taken, if technical specification is not in conformity with the requirement given in the bidding documents? • Bids should be compared with technical specifications given in the bidding documents. If the technical specification is not in conformity with the one stipulated in the bidding documents, such bids should be rejected as non-responsive. However, minor deviations can be considered by the Purchase Committee for acceptance, provided the bidding documents stipulated such a clause. • Whether a bid can be considered as responsive where technical specification is fulfilled but there was material deviation in commercial conditions? • In case technical specification is fulfilled in a bid and there are material deviations in commercial conditions, such bids need to be rejected as non-responsive. However, minor commercial deviations could be waived by the Purchase Committee, if such waiver is stipulated in the bidding documents.
Post Qualification 35. In an open tender for printing of textbooks, the bid of a printer was determined as lowest in the preliminary evaluation and technical evaluation. However, he did not fulfill the condition of past experience. State whether his bid can be determined as responsive in post qualification evaluation? Fulfillment of past experience should be one of the requirements in post qualification criteria stipulated in the bidding documents to determine the capability of the printer. Past performance should, therefore, be satisfactory to determine the eligibility of the bidder for award of the contract. Hence, his bid is to be rejected as non-responsive. 36. In an open tender minimum annual turnover of Rs. 300 crore each is prescribed for the last three years. The turnover of Supplier A for the last three years is Rs. 302 crore for the 1st Year, Rs. 305 for the 2nd Year and Rs. 299 crore for the 3rd year. Will he qualify the post qualification criteria? No. Since the minimum turn over of Rs. 300 crore is not maintained each year, he is not qualified.
Post Qualification • 37. In an open tender for purchase of 100 Nos. of computers, the supplier should have supplied computers of similar types specified in the Schedule of Requirement uptoatleast 300% of the quantity required in each of the last three years. The computer supplied by the supplier were 290 for the 1st year, 310 for the 2nd year and 320 for the 3rd year. He has quoted the lowest rate and the contract award was made to him. Is the award made is correct? • (i) The bidder has supplied only 280 computers in the 1st year against the requirement of 300 computers. • (ii) He has not fulfilled the qualification criteria prescribed in the bidding documents and his bid should have been rejected. • (iii) The next lowest responsive bidder should have been considered for the award of contract. • (iv) The award of contract made to him is not correct. • In an open tender for printing of text books, the printer should have the capacity of printing 5 lakh pages daily but he has the capacity of only 4.5 lakh pages daily. Is he eligible to get the award? • No. He did not fulfill the qualification criteria of capacity and the award cannot be made to him.
Opening of Bids 39. Is it necessary to provide copies of the addendum issued to the bid documents as a result of a decision taken in the pre-bid conference to all bidders who had purchased the bid documents prior to the pre-bid conference? Yes. It is necessary to provide copies of addendum issued to the bid documents to all bidders who had purchased it earlier. 40. The last date and time for receipt of bid was 11-6-2012 at 16 hrs. If a bid was received at 16:05 hrs. on 11-6-2012, will it be opened in the bid opening? No. The bids received late need not be opened and returned to the bidder unopened. 41. The representative of the bidder did not bring an authorization from the bidder to attend the opening of bid. Will he be allowed to participate in the bid opening process? No. The representative should bring an authorization from the bidder and in the absence of the same, he need not be allowed.
Opening of Bids 42. The dead line for receipt of bids was 11-6-2012 at 16 hrs. The bid was opened at 17:30 hrs. on the same day. Is it in order? No. The bids are to be opened immediately after the deadline for submission of bids but it should not exceed more than one hour from the deadline for submission of bids. 43. In the manual process of open tender, the bid documents were received by e.mail. Will it be accepted? No. In this process the bids received by e.mail need not be accepted. 44. The bidder or his authorised representative did not sign some pages of the bid documents (other than the printed catalogue/pamphlet). Will it be acceptable? No. All the pages of the bid documents are required to be signed by the bidder or his authorised representative who is holding the power of attorney. 45. The opening of bids was scheduled at 16:30 hrs. on 16-7-2012. This was declared as a holiday. When will the bids open? In the event of the specified date for opening of bids being declared a holiday, the bids will be opened up to the specified time and location on the next working day and in this case 17-7-2012 at 16:30 hrs.
Opening of Bids 46. Bidder has offered 10% discount , provided he be allowed 30% advance payment instead of the prescribed 10%. Will this discount offer be taken into account for evaluation? No. Conditional discounts offered by the bidder need not be taken into account for evaluation. 47. What is liquidated damage? Liquidated damages are charged when delays in the delivery of goods, completion of works or failure of the goods or works to meet performance requirements would result in extra cost, or loss of revenue or loss of other benefits to the implementing agency. 48. Is it necessary to prescribe liquidated damages in the bid documents? Yes. The bid documents should contain a provision to charge liquidated damages. 49. In an open tender, a bidder ranked L2 was invited for negotitation, when the negotitation with L1 did not yield any result. Is it correct? No. Negotiation with L1 bidder is only held in exceptional cases and not with other evaluated responsive bidders.
Award of Contract • 47. To whom the award of contract be made? • Award the contract to the successful lowest evaluated responsive bidder. • 48. Calculate the security deposit required for an open tender contract valued at Rs. 10 crore for the printing of text books? • Rs. 50 lakh is the security deposit required in this case (calculated @ 5% of the contract value). • 49. What will happen if a L1 bidder selected for the award of contract fails to deposit the amount of security deposit within the stipulated time? • Unless an extension of the date is granted by the purchaser, the offer of award will be annulled and his earnest money deposit stand forfeited. • 50. Is it in order, if the purchaser has accepted a single bid received in a well advertised open tender for the procurement of computers? • Single offers received can be accepted if publicity was adequate,bid specifications/conditions were not restrictive or unclear and bid prices are considered reasonable.
LIMITED TENDER 51.What are the Items normally covered in a limited tender contract? Goods including books, uniforms, TLE, TLM, School equipment, Hiring of vehicles, and Operation and maintenance of equipment. 52. Is it necessary to give advertisement for a limited tender in a new paper to invite quotations ? No. It is sufficient to issue a letter seeking quotations to the prospective suppliers on the approved list indicating description, specifications, quantity required, date of delivery and place of delivery. 53. Indicate the minimum number of quotations to be obtained in a limited tender? A minimum of 3 quotations are to be obtained in a limited tender. 54. Is it necessary to undertake a proper evaluation in a limited tender? Yes. Proper evaluation with reference to the requirements indicated in the letter of invitation and comparative statement is to be carried out. .
SINGLE TENDER 55. What are the items normally procured under single tender? (i) Articles specifically certified as of propriety nature; or (ii) Manufactured by a particular firm; (iii) Goods including books; (iv) Teaching materials; (v) School grant; (vi) Hiring of vehicles; and (vii) Operation and maintenance of equipment etc 56. How do you consider if an item not covered or the financial ceiling exceeded under single tender was procured? Such procurements are to be viewed as mis-procurement and SSA funds cannot be used.
57. Is it mandatory to entrust all school related civil works to community? Yes, except multistoried buildings in urban areas. 58. Is it necessary to enter into an agreement with the community for civil works construction? Yes, The format prescribed by MHRD is to be used for this purpose. 59. What procurement procedure is to be followed by the community for the purchase of building materials? The procurement procedure prescribed in the Manual is to be followed by the community . 60. In case of any savings available with the community, what action will be taken? The savings available with the community be refunded to SSA Account. Community Construction
61. Describe the Selection process involved in a service contract? (i) Preparation of Terms of Reference (ii) Preparation of Cost Estimate and Budget (iii) Advertisement, seeking Expression of Interest (EOI) (iv) Short listing of consultants/firms based on EOI (v) Issue of Request for Proposal (RFP) to short listed Consultants/firms. (vi) Receipt of RFP in two envelope system, technical and financial proposals separately. (vii) Formation of Evaluation Committee separately for technical and financial evaluation. (viii) Evaluation of Technical proposal and assign individual mark by each member on the basis of responsiveness to the TOR (ix) Open the Financial proposals of the qualifying Consultants publicly in the presence of the Consultants/representatives (x) Final discussions including negotiations (xi) Award of contract Service Contract
62. What are the steps involved in the engagement of NGO? (i) Preparation of Terms of Reference (ii) Publication of advertisement (iii) Formation of Evaluation Committee (iv) Short-listing of NGOs on the basis of specifications and scope of the work specified in the TOR. (v) Desk appraisal and if found suitable, field appraisal by the Evaluation Committee (vi) Recommendation by the Evaluation Committee for the selection of NGOs to the Grant-in-Aid Committee. (vii) Approval by Grant-in-Aid Committee based on the report of the Evaluation Committee on the desk and field appraisal. Non-Government Organizations