WORKSHOP ON ENFORCEMENT OF CONTRACT CLAUSES. B.PRADHAN,CVO,AAI GUWAHATI 08.09.2011. STRUCTURE OF PRESENTATION. PUBLIC PROCUREMENT CVC GUIDELINES AREAS OF CONCERN SUGGESTIONS. PUBLIC PROCUREMENT.
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Public procurement plays a big role, as appxmly. 30% of India’s GDP gets converted to public procurement contracts. Departments like Railways, Defenceand Telecom use 50% of their funds for procurement of good and services
As procurement is prone to corrupt practices, it has a three-fold effects:
In Kolkata Project, following was observed by CTEO:
As per the Board’s approval, Architect Fee was fixed at 5% of the estimated cost or the awarded cost, whichever is lower. However, at the time of framing the agreement, the fee was changed to 5% of the actual cost of the work or the awarded cost, whichever is lower. This revision caused increase in consultancy fee by approximately Rs.24 crores, giving undue benefit to the architectural consultant.
A large area of land was allotted at a nominal cost to the contractor for establishing stockyard in the airport premises, which was against the clarification issued at pre-tender stage. Undue benefit accrued to contractor on this account was of the order of Rs.10 crore.
Scope of work and design of the structures changed during execution.(Amritsar)
Site engineers are releasing escalation payments as per agreement clauses timely, but when it comes to recovery against de-escalation, action is being taken only after vigilance observation or at the time of final payment.(Aurangabad)