Manual for Procurement of Consultancy & Other Services \u2014 Study Notes (Ch 1\u20133)<\/title>\r\n<style>\r\n.elementor-section.elementor-section-stretched,\r\n .elementor-section-full_width,\r\n .elementor-container,\r\n .elementor-column,\r\n .elementor-column-wrap,\r\n .elementor-widget-wrap,\r\n .elementor-element {\r\n padding: 0 !important;\r\n margin: 0 !important;\r\n gap: 0 !important;\r\n }\r\n\r\n *, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; }\r\n :root {\r\n --navy:#10243f; --blue:#1c5da6; --sky:#2d8ecf; --teal:#0e8f7a;\r\n --amber:#c97c10; --red:#c0392b; --gold:#c89b0a; --purple:#7e3eb5;\r\n --slate:#41617f;\r\n --text:#1c2b3a; --muted:#5a6d80; --border:#dde6ef;\r\n --blueprint:#0c3b6e;\r\n }\r\n html { scroll-behavior: smooth; }\r\n body { font-family:'DM Sans',-apple-system,BlinkMacSystemFont,'Segoe UI',sans-serif; background:#fff; color:var(--text); font-size:15px; line-height:1.85; }\r\n a { text-decoration:none; color:inherit; }\r\n\r\n \/* \u2500\u2500 HERO \u2500\u2500 *\/\r\n .hero { width:100%; background:linear-gradient(125deg,#0a1f3c 0%,#10243f 30%,#13507f 70%,#0e8f7a 100%); padding:60px 48px 56px; color:#fff; position:relative; overflow:hidden; }\r\n .hero::before { content:''; position:absolute; inset:0;\r\n background-image:linear-gradient(rgba(255,255,255,0.05) 1px,transparent 1px),linear-gradient(90deg,rgba(255,255,255,0.05) 1px,transparent 1px);\r\n background-size:34px 34px; pointer-events:none; }\r\n .hero::after { content:''; position:absolute; right:-90px; top:-110px; width:520px; height:520px; border-radius:50%; background:radial-gradient(circle,rgba(255,255,255,0.10) 0%,transparent 65%); pointer-events:none; }\r\n .hero-inner { max-width:1120px; margin:0 auto; position:relative; z-index:1; }\r\n .hero-grid { display:grid; grid-template-columns:1fr 340px; gap:36px; align-items:center; }\r\n .hero-text { min-width:0; }\r\n .hero-illustration { width:340px; max-width:100%; filter:drop-shadow(0 12px 24px rgba(0,0,0,0.28)); animation:heroFloat 6s ease-in-out infinite; }\r\n .hero-illustration svg { width:100%; height:auto; display:block; }\r\n @keyframes heroFloat { 0%,100%{transform:translateY(0);} 50%{transform:translateY(-7px);} }\r\n .hero-kicker { display:inline-block; background:rgba(255,255,255,0.16); color:#fff; font-size:11px; font-weight:700; padding:6px 14px; border-radius:20px; letter-spacing:0.14em; text-transform:uppercase; margin-bottom:18px; backdrop-filter:blur(4px); }\r\n .hero h1 { font-family:'Crimson Pro',Georgia,serif; font-size:clamp(28px,4.2vw,44px); font-weight:700; line-height:1.18; margin-bottom:14px; color:#fff; text-shadow:0 2px 8px rgba(0,0,0,0.20); }\r\n .hero-sub { font-size:15px; opacity:0.93; margin-bottom:24px; max-width:740px; color:#fff; }\r\n .hero-pills { display:flex; flex-wrap:wrap; gap:8px; }\r\n .hero-pill { background:rgba(255,255,255,0.16); border:1px solid rgba(255,255,255,0.30); color:#fff; font-size:12px; font-weight:600; padding:6px 14px; border-radius:20px; backdrop-filter:blur(6px); }\r\n\r\n \/* \u2500\u2500 progress banner \u2500\u2500 *\/\r\n .scope-banner { background:#fff7ec; border-bottom:1px solid #f0dcb8; padding:10px 48px; }\r\n .scope-inner { max-width:1120px; margin:0 auto; font-size:13px; color:#8a5a10; display:flex; align-items:center; gap:8px; }\r\n .scope-inner strong { color:#6b4408; }\r\n\r\n .breadcrumb-bar { background:#fff; border-bottom:1px solid var(--border); padding:10px 48px; }\r\n .breadcrumb-inner { max-width:1120px; margin:0 auto; font-size:12.5px; color:#aaa; display:flex; align-items:center; gap:6px; }\r\n .breadcrumb-inner a { color:var(--blue); }\r\n .breadcrumb-inner a:hover { text-decoration:underline; }\r\n .breadcrumb-inner .sep { color:#ddd; }\r\n\r\n .layout { max-width:1120px; margin:0 auto; padding:44px 48px 88px; display:grid; grid-template-columns:264px 1fr; gap:56px; align-items:start; }\r\n\r\n .chapter-heading-block { display:flex; align-items:center; gap:14px; margin:52px 0 22px; padding-bottom:14px; border-bottom:2.5px solid var(--navy); }\r\n .chapter-heading-block:first-child { margin-top:0; }\r\n .chapter-badge { background:var(--navy); color:#fff; font-size:10px; font-weight:700; padding:5px 16px; border-radius:4px; letter-spacing:0.1em; text-transform:uppercase; white-space:nowrap; flex-shrink:0; }\r\n .chapter-heading-block h2 { font-family:'Crimson Pro',Georgia,serif; font-size:23px; font-weight:700; color:var(--navy); margin:0; }\r\n\r\n .section-heading-block { display:flex; align-items:center; gap:12px; margin:38px 0 14px; }\r\n .section-badge { background:var(--blue); color:#fff; font-size:9.5px; font-weight:700; padding:4px 12px; border-radius:3px; letter-spacing:0.08em; white-space:nowrap; flex-shrink:0; }\r\n .section-badge.amber{background:var(--amber);} .section-badge.teal{background:var(--teal);}\r\n .section-badge.purple{background:var(--purple);} .section-badge.red{background:var(--red);} .section-badge.gold{background:var(--gold);} .section-badge.slate{background:var(--slate);}\r\n .section-heading-block h3 { font-size:17px; font-weight:700; color:var(--navy); margin:0; }\r\n\r\n .article h4 { font-size:14.5px; font-weight:700; color:var(--navy); margin:22px 0 10px; }\r\n .article p { color:#2c3e50; margin-bottom:12px; text-align:justify; hyphens:auto; }\r\n .article strong { color:#111; }\r\n\r\n .icon-list { list-style:none; margin:0 0 14px; display:flex; flex-direction:column; gap:8px; }\r\n .icon-list li { display:flex; align-items:flex-start; gap:10px; font-size:15px; color:#2c3e50; line-height:1.78; text-align:justify; }\r\n .icon-list li .ico { font-size:15px; flex-shrink:0; margin-top:4px; width:20px; text-align:center; }\r\n\r\n .callout { border-left:3px solid var(--blue); padding:14px 18px; margin:16px 0 20px; background:#f6faff; border-radius:0 6px 6px 0; }\r\n .callout.amber{border-left-color:var(--amber);background:#fffbf5;} .callout.red{border-left-color:var(--red);background:#fff8f7;}\r\n .callout.teal{border-left-color:var(--teal);background:#f4fdf9;} .callout.purple{border-left-color:var(--purple);background:#faf6ff;} .callout.gold{border-left-color:var(--gold);background:#fffcf0;} .callout.slate{border-left-color:var(--slate);background:#f5f8fb;}\r\n .callout-label { font-size:10px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; margin-bottom:8px; color:var(--blue); }\r\n .callout.amber .callout-label{color:var(--amber);} .callout.red .callout-label{color:var(--red);}\r\n .callout.teal .callout-label{color:var(--teal);} .callout.purple .callout-label{color:var(--purple);} .callout.gold .callout-label{color:#8a6a00;} .callout.slate .callout-label{color:var(--slate);}\r\n .callout p { text-align:justify; }\r\n\r\n .def-card { background:linear-gradient(135deg,#f3f8fd 0%,#e9f2fb 100%); border:1.5px solid #b9d2ec; border-radius:12px; padding:22px 26px; margin:18px 0 26px; position:relative; }\r\n .def-card::before { content:'\\201C'; position:absolute; top:6px; left:14px; font-family:Georgia,serif; font-size:60px; color:rgba(28,93,166,0.18); line-height:1; }\r\n .def-card .def-label { font-size:10.5px; font-weight:700; text-transform:uppercase; letter-spacing:0.14em; color:var(--blue); margin-bottom:8px; position:relative; z-index:1; }\r\n .def-card .def-text { font-size:15px; color:#1f3a55; line-height:1.78; position:relative; z-index:1; text-align:justify; }\r\n\r\n .compare-table { width:100%; border-collapse:collapse; margin:16px 0 24px; border-radius:8px; overflow:hidden; border:1px solid var(--border); table-layout:fixed; }\r\n .compare-table thead tr { background:var(--navy); color:#fff; }\r\n .compare-table th { padding:12px 16px; text-align:left; font-size:12.5px; font-weight:700; }\r\n .compare-table td { padding:11px 16px; font-size:14px; border-bottom:1px solid var(--border); color:#2c3e50; vertical-align:top; word-wrap:break-word; }\r\n .compare-table tr:nth-child(even) td { background:#f8fbfd; }\r\n .compare-table td.label-cell { font-weight:700; color:var(--navy); background:#eef4fa !important; }\r\n .compare-table td.code-cell { font-family:'JetBrains Mono',monospace; font-weight:700; color:var(--blue); background:#eef4fa !important; text-align:center; }\r\n\r\n .info-row { display:grid; grid-template-columns:repeat(auto-fit,minmax(150px,1fr)); gap:14px; margin:18px 0 26px; }\r\n .info-card { background:#fff; border:1.5px solid var(--border); border-top:4px solid var(--blue); border-radius:12px; padding:18px 16px; }\r\n .info-card.t-teal { border-top-color:var(--teal); }\r\n .info-card.t-amber { border-top-color:var(--amber); }\r\n .info-card.t-gold { border-top-color:var(--gold); }\r\n .info-card.t-red { border-top-color:var(--red); }\r\n .info-card.t-purple { border-top-color:var(--purple); }\r\n .info-card .ic-big { font-family:'JetBrains Mono',monospace; font-weight:800; font-size:20px; color:var(--navy); line-height:1.12; margin-bottom:5px; }\r\n .info-card .ic-cap { font-size:12.5px; color:#5a6b7d; line-height:1.5; }\r\n\r\n .parts-list { list-style:none; counter-reset:parts; margin:14px 0 22px; display:flex; flex-direction:column; gap:12px; }\r\n .parts-list > li { background:#fff; border:1.5px solid var(--border); border-radius:10px; padding:16px 18px 16px 60px; position:relative; font-size:14.5px; color:#2c3e50; line-height:1.72; counter-increment:parts; text-align:justify; }\r\n .parts-list > li::before { content:counter(parts,lower-alpha); position:absolute; left:16px; top:16px; width:32px; height:32px; background:var(--blue); color:#fff; border-radius:50%; display:flex; align-items:center; justify-content:center; font-size:14px; font-weight:700; font-family:'JetBrains Mono',monospace; }\r\n .parts-list.roman > li::before { content:counter(parts,lower-roman); font-size:12px; }\r\n .parts-list.decimal > li::before { content:counter(parts); font-size:13px; }\r\n .parts-list.teal > li::before{background:var(--teal);} .parts-list.amber > li::before{background:var(--amber);}\r\n .parts-list.purple > li::before{background:var(--purple);} .parts-list.red > li::before{background:var(--red);} .parts-list.gold > li::before{background:var(--gold);} .parts-list.slate > li::before{background:var(--slate);}\r\n .parts-list > li strong { color:var(--navy); }\r\n\r\n .highlight-box { background:linear-gradient(135deg,#eef6ff 0%,#e4eefb 100%); border-left:4px solid var(--blue); border-radius:0 10px 10px 0; padding:16px 20px; margin:16px 0 22px; }\r\n .highlight-box .hl-label { font-size:10px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--blue); margin-bottom:6px; }\r\n .highlight-box .hl-text { font-size:14.5px; color:#2c3e50; line-height:1.72; text-align:justify; }\r\n\r\n .cat-grid { display:grid; grid-template-columns:repeat(2,1fr); gap:14px; margin:20px 0 28px; }\r\n .cat-grid.three{grid-template-columns:repeat(3,1fr);} .cat-grid.four{grid-template-columns:repeat(4,1fr);}\r\n .cat-card { border-radius:10px; padding:18px 18px; border:1.5px solid var(--border); }\r\n .cat-card.a{border-color:#9dc3ec;background:#f0f7ff;} .cat-card.b{border-color:#7fd3c5;background:#f0fdf8;}\r\n .cat-card.c{border-color:#f0d58a;background:#fffbf0;} .cat-card.d{border-color:#f5a0a0;background:#fff5f5;} .cat-card.e{border-color:#d1baf0;background:#f9f5ff;}\r\n .cat-label { font-size:9.5px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:6px; }\r\n .cat-title { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:8px; }\r\n .cat-card.a .cat-title{color:var(--blue);} .cat-card.b .cat-title{color:var(--teal);} .cat-card.c .cat-title{color:var(--amber);} .cat-card.d .cat-title{color:var(--red);} .cat-card.e .cat-title{color:var(--purple);}\r\n .cat-card p { font-size:13px; color:#2c3e50; line-height:1.7; text-align:justify; }\r\n .cat-badge { display:inline-block; font-size:22px; font-weight:900; margin-bottom:6px; font-family:'JetBrains Mono',monospace; line-height:1; }\r\n .cat-card.a .cat-badge{color:var(--blue);} .cat-card.b .cat-badge{color:var(--teal);} .cat-card.c .cat-badge{color:var(--amber);} .cat-card.d .cat-badge{color:var(--red);} .cat-card.e .cat-badge{color:var(--purple);}\r\n\r\n .chapter-pane { display:none; animation:fadeIn 0.3s ease; }\r\n .chapter-pane.active { display:block; }\r\n @keyframes fadeIn { from{opacity:0;transform:translateY(4px);} to{opacity:1;transform:translateY(0);} }\r\n\r\n .sidebar { position:sticky; top:24px; max-height:calc(100vh - 48px); }\r\n .toc-card { background:#fff; border:1px solid var(--border); border-radius:12px; padding:16px 12px; max-height:calc(100vh - 48px); overflow-y:auto; }\r\n .toc-card-title { font-size:10px; font-weight:700; text-transform:uppercase; letter-spacing:0.14em; color:var(--muted); margin:4px 0 14px; padding:0 4px; }\r\n .toc-chapter { margin-bottom:8px; }\r\n .toc-chapter-header { background:var(--navy); border-radius:10px; padding:12px; color:#fff; cursor:pointer; display:flex; align-items:center; gap:10px; list-style:none; transition:background 0.18s; }\r\n .toc-chapter-header::-webkit-details-marker { display:none; }\r\n .toc-chapter-header:hover { background:#163457; }\r\n .toc-ch-badge { background:#ffd95a; color:#10243f; font-size:10px; font-weight:800; letter-spacing:0.06em; padding:4px 8px; border-radius:5px; flex-shrink:0; min-width:38px; text-align:center; line-height:1; }\r\n .toc-ch-title { flex:1; font-size:13.5px; font-weight:700; line-height:1.25; color:#fff; }\r\n .toc-ch-chev { font-size:10px; color:rgba(255,255,255,0.8); transition:transform 0.22s ease; flex-shrink:0; }\r\n .toc-chapter[open] > .toc-chapter-header { background:#163457; }\r\n .toc-chapter[open] > .toc-chapter-header .toc-ch-chev { transform:rotate(90deg); }\r\n .toc-sub-wrap { position:relative; margin:6px 0 6px 18px; padding-left:14px; }\r\n .toc-sub-wrap::before { content:''; position:absolute; left:0; top:6px; bottom:8px; width:1px; background:repeating-linear-gradient(to bottom,#d0d8e2 0px,#d0d8e2 2px,transparent 2px,transparent 5px); }\r\n .toc-sub-list { list-style:none; }\r\n .toc-sub-list li { display:flex; align-items:flex-start; gap:6px; padding:5px 4px 5px 0; }\r\n .toc-sub-num { flex-shrink:0; font-family:'JetBrains Mono',monospace; font-size:10.5px; color:var(--muted); font-weight:600; line-height:1.5; min-width:40px; padding-top:1px; }\r\n .toc-sub-list a { flex:1; font-size:13px; color:#2c3e50; line-height:1.45; padding:1px 4px; border-radius:3px; transition:color 0.15s; }\r\n .toc-sub-list a:hover { color:var(--blue); }\r\n .toc-sub-list a.active { color:var(--blue); font-weight:700; }\r\n .toc-sub-list .toc-app .toc-sub-num, .toc-sub-list .toc-app a { color:var(--purple); }\r\n .toc-sub-list .toc-app a:hover, .toc-sub-list .toc-app a.active { color:#5a2a8a; font-weight:700; }\r\n\r\n .recap { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); border-radius:14px; padding:28px 30px; margin:44px 0 0; color:#fff; }\r\n .recap-title { font-family:'Crimson Pro',Georgia,serif; font-size:20px; font-weight:700; margin-bottom:18px; display:flex; align-items:center; gap:10px; }\r\n .recap table { width:100%; border-collapse:collapse; }\r\n .recap th, .recap td { padding:10px 14px; text-align:left; border-bottom:1px solid rgba(255,255,255,0.12); font-size:13.5px; }\r\n .recap th { font-size:11px; text-transform:uppercase; letter-spacing:0.1em; opacity:0.7; font-weight:700; }\r\n .recap td:first-child { font-weight:700; color:#ffd700; width:38%; }\r\n .recap td strong { color:#ffd95a; font-weight:700; }\r\n .recap td:first-child strong { color:inherit; }\r\n\r\n \/* quiz *\/\r\n .ix { border:1.5px solid var(--border); border-radius:14px; margin:30px 0 28px; overflow:hidden; background:#fff; }\r\n .ix-head { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); color:#fff; padding:14px 20px; display:flex; align-items:center; gap:12px; }\r\n .ix-head .ix-chip { background:#ffd95a; color:#10243f; font-size:9.5px; font-weight:800; letter-spacing:0.1em; padding:4px 10px; border-radius:20px; text-transform:uppercase; flex-shrink:0; }\r\n .ix-head h4 { font-size:14px; font-weight:700; color:#fff; margin:0; }\r\n .ix-body { padding:20px; }\r\n .ix-help { font-size:12.5px; color:var(--muted); margin:0 0 14px; }\r\n .quiz-q { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:14px; display:flex; gap:8px; align-items:baseline; }\r\n .quiz-q .q-tag { font-family:'JetBrains Mono',monospace; font-size:24px; font-weight:700; color:var(--blue); flex-shrink:0; }\r\n .quiz-opts { display:grid; grid-template-columns:repeat(2,1fr); gap:10px; margin-bottom:6px; }\r\n .quiz-opt { border:1.5px solid var(--border); border-radius:9px; padding:12px 14px; font-size:13.5px; font-weight:600; color:#2c3e50; cursor:pointer; transition:all 0.15s; text-align:left; background:#fff; }\r\n .quiz-opt:hover { border-color:var(--blue); background:#f0f7ff; }\r\n .quiz-opt.correct { border-color:var(--teal); background:#eafaf5; color:#0a6354; }\r\n .quiz-opt.wrong { border-color:var(--red); background:#fdf2f1; color:var(--red); }\r\n .quiz-opt.lock { pointer-events:none; opacity:0.55; }\r\n .quiz-opt.lock.correct, .quiz-opt.lock.wrong { opacity:1; }\r\n .quiz-fb { margin-top:12px; font-size:13px; line-height:1.6; color:var(--muted); padding:0 2px; min-height:18px; }\r\n .quiz-fb strong { color:var(--navy); }\r\n .quiz-foot { display:flex; align-items:center; justify-content:space-between; margin-top:16px; padding-top:14px; border-top:1px solid var(--border); }\r\n .quiz-score { font-size:12.5px; font-weight:700; color:var(--navy); font-family:'JetBrains Mono',monospace; }\r\n .quiz-btn { background:var(--blue); color:#fff; border:none; font-family:'DM Sans',sans-serif; font-size:12.5px; font-weight:700; padding:9px 18px; border-radius:8px; cursor:pointer; transition:background 0.15s; }\r\n .quiz-btn:hover { background:#16538f; }\r\n .quiz-btn:disabled { background:#b9c6d4; cursor:default; }\r\n\r\n \/* definitions index chips *\/\r\n .term-grid { display:grid; grid-template-columns:repeat(auto-fit,minmax(150px,1fr)); gap:10px; margin:16px 0 24px; }\r\n .term-chip { background:#fff; border:1.5px solid var(--border); border-radius:10px; padding:11px 12px; transition:transform .15s, box-shadow .15s, border-color .15s; }\r\n .term-chip:hover { transform:translateY(-3px); box-shadow:0 8px 20px rgba(16,36,63,.10); border-color:var(--teal); }\r\n .term-chip .tc-num { font-family:'JetBrains Mono',monospace; font-weight:800; font-size:11px; color:var(--blue); }\r\n .term-chip .tc-name { font-size:12.5px; font-weight:700; color:var(--navy); line-height:1.35; margin-top:2px; }\r\n\r\n \/* note-list *\/\r\n .note-list { list-style:none; display:flex; flex-direction:column; gap:10px; margin:14px 0 22px; }\r\n .note-list > li { display:flex; gap:12px; align-items:flex-start; background:#fff; border:1.5px solid var(--border); border-left:3px solid var(--blue); border-radius:0 9px 9px 0; padding:12px 16px; }\r\n .note-list > li .nl-tag { flex-shrink:0; font-family:'JetBrains Mono',monospace; font-size:10.5px; font-weight:800; color:#fff; background:var(--blue); padding:5px 9px; border-radius:6px; letter-spacing:.03em; min-width:58px; text-align:center; line-height:1.3; margin-top:1px; }\r\n .note-list > li .nl-text { font-size:14px; color:#2c3e50; line-height:1.7; text-align:justify; }\r\n .note-list > li .nl-text strong { color:var(--navy); }\r\n .note-list.amber > li { border-left-color:var(--amber); } .note-list.amber > li .nl-tag { background:var(--amber); }\r\n .note-list.red > li { border-left-color:var(--red); } .note-list.red > li .nl-tag { background:var(--red); }\r\n .note-list.teal > li { border-left-color:var(--teal); } .note-list.teal > li .nl-tag { background:var(--teal); }\r\n .note-list.purple > li { border-left-color:var(--purple); } .note-list.purple > li .nl-tag { background:var(--purple); }\r\n .note-list.gold > li { border-left-color:var(--gold); } .note-list.gold > li .nl-tag { background:#a8810f; }\r\n .note-list.slate > li { border-left-color:var(--slate); } .note-list.slate > li .nl-tag { background:var(--slate); }\r\n\r\n @media (max-width:880px) {\r\n .layout { grid-template-columns:1fr; gap:32px; padding:28px 24px 64px; }\r\n .sidebar { position:static; }\r\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr 1fr; }\r\n .hero { padding:48px 24px 44px; }\r\n .breadcrumb-bar, .scope-banner { padding:10px 24px; }\r\n .hero-grid { grid-template-columns:1fr; gap:24px; }\r\n .hero-illustration { width:250px; margin:0 auto; }\r\n }\r\n @media (max-width:520px) {\r\n .hero h1 { font-size:24px; }\r\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr; }\r\n .quiz-opts { grid-template-columns:1fr 1fr; }\r\n .hero-illustration { display:none; }\r\n }\r\n<\/style>\r\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\r\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin>\r\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Crimson+Pro:wght@400;600;700&family=DM+Sans:wght@400;500;700&family=JetBrains+Mono:wght@400;700&display=swap\" rel=\"stylesheet\">\r\n<\/head>\r\n<body>\r\n\r\n\r\n<div class=\"hero\">\r\n <div class=\"hero-inner hero-grid\">\r\n <div class=\"hero-text\">\r\n \r\n <h1>Manual for Procurement of Consultancy & Other Services<\/h1>\r\n <p class=\"hero-sub\">The Government of India's procedural rule-book for hiring <strong>consultants<\/strong> and outsourcing <strong>other (non-consultancy) services<\/strong>. Built as a portal to the GFR 2017, DFPR and CVC guidelines \u2014 it fixes the definitions, the principles, the preference policies (MSE & Make-in-India), the governance code, and the contract & selection methods. These notes cover <strong>Chapters 1\u20133<\/strong>: the framework, the players & governance, and the contract types & systems of selection.<\/p>\r\n \r\n <\/div>\r\n <div class=\"hero-illustration\" aria-hidden=\"true\">\r\n <svg viewBox=\"0 0 340 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"A signed contract document with a pen, a handshake and a rupee coin\">\r\n <ellipse cx=\"170\" cy=\"262\" rx=\"130\" ry=\"12\" fill=\"rgba(0,0,0,0.18)\"\/>\r\n \r\n <rect x=\"78\" y=\"34\" width=\"150\" height=\"186\" rx=\"8\" fill=\"#f7fbff\" stroke=\"#10243f\" stroke-width=\"3\"\/>\r\n <rect x=\"78\" y=\"34\" width=\"150\" height=\"34\" rx=\"8\" fill=\"#13507f\"\/>\r\n <rect x=\"78\" y=\"58\" width=\"150\" height=\"10\" fill=\"#13507f\"\/>\r\n <text x=\"153\" y=\"56\" font-family=\"Georgia,serif\" font-size=\"13\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#ffd95a\">R f P<\/text>\r\n <g stroke=\"#9dc3ec\" stroke-width=\"3\" stroke-linecap=\"round\">\r\n <line x1=\"96\" y1=\"86\" x2=\"210\" y2=\"86\"\/>\r\n <line x1=\"96\" y1=\"102\" x2=\"210\" y2=\"102\"\/>\r\n <line x1=\"96\" y1=\"118\" x2=\"186\" y2=\"118\"\/>\r\n <line x1=\"96\" y1=\"142\" x2=\"210\" y2=\"142\"\/>\r\n <line x1=\"96\" y1=\"158\" x2=\"194\" y2=\"158\"\/>\r\n <\/g>\r\n \r\n <line x1=\"96\" y1=\"192\" x2=\"170\" y2=\"192\" stroke=\"#41617f\" stroke-width=\"2\"\/>\r\n <path d=\"M100 188 q8 -10 16 0 t16 0 t14 -2\" fill=\"none\" stroke=\"#1c5da6\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/>\r\n \r\n <g transform=\"rotate(38 196 196)\">\r\n <rect x=\"188\" y=\"150\" width=\"14\" height=\"64\" rx=\"3\" fill=\"#c97c10\" stroke=\"#8a5a10\" stroke-width=\"2\"\/>\r\n <path d=\"M188 214 L195 230 L202 214 Z\" fill=\"#10243f\"\/>\r\n <rect x=\"188\" y=\"150\" width=\"14\" height=\"12\" fill=\"#0e8f7a\"\/>\r\n <\/g>\r\n \r\n <circle cx=\"92\" cy=\"208\" r=\"30\" fill=\"#0e8f7a\" stroke=\"#0a6354\" stroke-width=\"3\"\/>\r\n <path d=\"M78 208 l9 -7 8 5 8 -6 9 7\" fill=\"none\" stroke=\"#fff\" stroke-width=\"3\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n <path d=\"M78 208 l9 8 M113 208 l-9 8\" stroke=\"#fff\" stroke-width=\"3\" stroke-linecap=\"round\"\/>\r\n \r\n <circle cx=\"236\" cy=\"56\" r=\"26\" fill=\"#c89b0a\" stroke=\"#8a6a00\" stroke-width=\"3\"\/>\r\n <text x=\"236\" y=\"66\" font-family=\"Georgia,serif\" font-size=\"28\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#fffaf0\">₹<\/text>\r\n \r\n <circle cx=\"250\" cy=\"170\" r=\"22\" fill=\"#1c5da6\" stroke=\"#13456f\" stroke-width=\"3\"\/>\r\n <path d=\"M240 170 l7 8 13 -16\" fill=\"none\" stroke=\"#fff\" stroke-width=\"4\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n <\/svg>\r\n <\/div>\r\n <\/div>\r\n<\/div>\r\n\r\n\r\n<div class=\"scope-banner\">\r\n <div class=\"scope-inner\">\r\n <span>▶<\/span>\r\n <span><strong>These Notes covers the complete manual \u2014 Chapters 1\u20139.<\/strong> Introduction · Consultants & Governance · Contracts & Systems of Selection · Preparing for Procurement · Shortlisting Stage · Selection by Competitive Process · Special Types of Engagements · Monitoring Contracts · Procurement (Outsourcing) of Other (Non-consultancy) Services.<\/span>\r\n <\/div>\r\n<\/div>\r\n\r\n\r\n<div class=\"breadcrumb-bar\">\r\n <div class=\"breadcrumb-inner\">\r\n <a href=\"#\">Home<\/a>\r\n <span class=\"sep\">›<\/span>\r\n <a href=\"#\">Notes<\/a>\r\n <span class=\"sep\">›<\/span>\r\n <span>Manual for Procurement of Consultancy & Other Services<\/span>\r\n <\/div>\r\n<\/div>\r\n\r\n<div class=\"layout\">\r\n <aside class=\"sidebar\">\r\n <div class=\"toc-card\">\r\n <div class=\"toc-card-title\">Table of Contents<\/div>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"1\" open>\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 1<\/span>\r\n <span class=\"toc-ch-title\">Introduction to Procurement<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">1.1<\/span><a href=\"#c1-11\">Rules, Regulations & this Manual<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.3<\/span><a href=\"#c1-13\">Applicability & Definitions<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.4<\/span><a href=\"#c1-14\">Competent Authorities & Powers<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.5<\/span><a href=\"#c1-15\">Five R's of Procurement<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.6<\/span><a href=\"#c1-16\">Principles of Public Procurement<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.7<\/span><a href=\"#c1-17\">Canons of Financial Propriety<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.8<\/span><a href=\"#c1-18\">Procurement Infrastructure<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.9<\/span><a href=\"#c1-19\">Preferential \/ Mandatory Purchase<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.10<\/span><a href=\"#c1-110\">When Procurement is Justified<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.12<\/span><a href=\"#c1-112\">Law of Agency & RTI Disclosure<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.14<\/span><a href=\"#c1-114\">Cycle & Concept Paper<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c1-recap\">Chapter 1 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"2\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 2<\/span>\r\n <span class=\"toc-ch-title\">Consultants & Governance<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">2.1<\/span><a href=\"#c2-21\">Types of Consultants \/ Providers<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2<\/span><a href=\"#c2-22\">Code of Integrity (CIPP)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2.3<\/span><a href=\"#c2-22c\">Conflict of Interest<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2.6<\/span><a href=\"#c2-22p\">Punitive Provisions<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2.7<\/span><a href=\"#c2-22r\">Conduct Risks & Mitigations<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.3<\/span><a href=\"#c2-23\">Integrity Pact & IEMs<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.4<\/span><a href=\"#c2-24\">Debarment of Firms<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c2-recap\">Chapter 2 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"3\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 3<\/span>\r\n <span class=\"toc-ch-title\">Contracts & Selection<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">3.1<\/span><a href=\"#c3-31\">Types of Contracts<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.2<\/span><a href=\"#c3-32\">Lump Sum (Firm Fixed Price)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.3<\/span><a href=\"#c3-33\">Time-Based (Retainer-ship)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.4<\/span><a href=\"#c3-34\">Percentage & Retainer-cum-Fee<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.6<\/span><a href=\"#c3-36\">Indefinite Delivery<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.7<\/span><a href=\"#c3-37\">Systems of Selection<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.8<\/span><a href=\"#c3-38\">Least Cost Selection (LCS)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.9<\/span><a href=\"#c3-39\">Quality & Cost Based (QCBS)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.10<\/span><a href=\"#c3-310\">Single Source Selection (SSS)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.11<\/span><a href=\"#c3-311\">Fixed Budget Selection (FBS)<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c3-recap\">Chapter 3 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"4\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 4<\/span>\r\n <span class=\"toc-ch-title\">Preparing for Procurement<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">4.1<\/span><a href=\"#c4-tor\">Terms of Reference (ToR)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.1.3<\/span><a href=\"#c4-reports\">Deliverables & Reports<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.2<\/span><a href=\"#c4-cost\">Costs, Budget & Approval<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.3<\/span><a href=\"#c4-final\">Finalising & Approving the ToR<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.4<\/span><a href=\"#c4-plan\">Procurement Plan<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.5<\/span><a href=\"#c4-eproc\">e-Procurement<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c4-recap\">Chapter 4 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"5\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 5<\/span>\r\n <span class=\"toc-ch-title\">Shortlisting Stage<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">5.1<\/span><a href=\"#c5-eoi\">EoI & the Two-Stage Process<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.1.3<\/span><a href=\"#c5-thresh\">Advertised EoI & Thresholds<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.1.4<\/span><a href=\"#c5-gte\">Global Tender Enquiry<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.1.9<\/span><a href=\"#c5-below\">Below \u20b925 Lakh & Empanelment<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.2<\/span><a href=\"#c5-shortlist\">Short List & Weightages<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.3<\/span><a href=\"#c5-risks\">Risks & Mitigation<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c5-recap\">Chapter 5 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"6\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 6<\/span>\r\n <span class=\"toc-ch-title\">Selection by Competitive Process<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">6.1<\/span><a href=\"#c6-steps\">The Evaluation Process<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.2<\/span><a href=\"#c6-rfp\">Request for Proposals (RfP)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.2.6<\/span><a href=\"#c6-provisions\">PVC, Advances & Securities<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.3<\/span><a href=\"#c6-pre\">Pre-proposal Meeting & Receipt<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.5<\/span><a href=\"#c6-cec\">Consultancy Evaluation Committee<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.6<\/span><a href=\"#c6-resp\">Responsiveness & Technical Eval<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.8<\/span><a href=\"#c6-cost\">Evaluation of Cost<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.9<\/span><a href=\"#c6-winner\">Selecting the Winner<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.10<\/span><a href=\"#c6-award\">Negotiations & Award<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c6-recap\">Chapter 6 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"7\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 7<\/span>\r\n <span class=\"toc-ch-title\">Special Types of Engagements<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">7.1<\/span><a href=\"#c7-sss\">Single Source Selection<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.2<\/span><a href=\"#c7-individual\">Individual Consultants<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.3<\/span><a href=\"#c7-agencies\">Agencies, Institutions & NGOs<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.5<\/span><a href=\"#c7-pa\">Procurement & Inspection Agents<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.7<\/span><a href=\"#c7-fin\">Financial Advisors & Auditors<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.9<\/span><a href=\"#c7-logo\">Logo \/ Symbol Competitions<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c7-recap\">Chapter 7 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"8\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 8<\/span>\r\n <span class=\"toc-ch-title\">Monitoring the Contract<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">8.1<\/span><a href=\"#c8-monitor\">Monitoring & the CMC<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.6<\/span><a href=\"#c8-tlmonitor\">Time-based vs Lump-sum<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.10<\/span><a href=\"#c8-variations\">Contract Variations<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.11<\/span><a href=\"#c8-substitution\">Substitution of Key Staff<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.13<\/span><a href=\"#c8-disputes\">Disputes & Arbitration<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.14<\/span><a href=\"#c8-fm\">Force Majeure & Termination<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.17<\/span><a href=\"#c8-risks\">Risks & Mitigation<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c8-recap\">Chapter 8 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"9\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 9<\/span>\r\n <span class=\"toc-ch-title\">Other (Non-consultancy) Services<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">9.1<\/span><a href=\"#c9-applic\">Applicability & Classification<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.4<\/span><a href=\"#c9-period\">Contract Period & Principles<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.6<\/span><a href=\"#c9-selection\">System of Selection<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.7<\/span><a href=\"#c9-gem\">Government e-Marketplace (GeM)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.7.7<\/span><a href=\"#c9-pay\">GeM Payment, CRAC & PRC<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.18<\/span><a href=\"#c9-sla\">SLA & Monitoring<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c9-recap\">Chapter 9 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <\/div>\r\n <\/aside>\r\n\r\n <main class=\"article\">\r\n \r\n <section class=\"chapter-pane active\" id=\"pane-ch1\" data-chapter=\"1\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c1-11\">\r\n <span class=\"chapter-badge\">CH 1 \u00b7 INTRODUCTION<\/span>\r\n <h2>Introduction to Procurement of Consultancy \/ Other Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">What this Manual is<\/div>\r\n <div class=\"def-text\">\r\n The Manual is a <strong>portal<\/strong> to the framework governing public procurement of services. Ministries\/Departments have full powers to arrange procurement of goods and services <strong>not available on GeM<\/strong>, exercised under the <strong>Delegation of Financial Power Rules (DFPR)<\/strong> and the Procurement Guidelines. Common-use goods and services that <em>are<\/em> on GeM must be procured through GeM (<strong>Rule 149, GFR 2017<\/strong>).\r\n <\/div>\r\n <\/div>\r\n\r\n <p>It does not stand alone \u2014 comprehensive rules sit in <strong>GFR 2017 (especially Chapter 6)<\/strong>, the DFPR, purchase-preference orders, and CVC guidelines. There is <strong>no single law exclusively governing public procurement<\/strong>; for revision and clarification of this Manual the nodal authority is the <strong>Procurement Policy Division (PPD), Department of Expenditure, Ministry of Finance<\/strong>.<\/p>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">The statutory framework<\/div>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">CONST<\/span><span class=\"nl-text\">At the apex sits <strong>Article 299 of the Constitution<\/strong> \u2014 Government contracts must be in writing and executed by specifically authorised officers. <strong>Article 19(1)(g)<\/strong> (right to a profession) also has implications for procurement.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1872<\/span><span class=\"nl-text\"><strong>Indian Contract Act, 1872<\/strong> \u2014 the general law of contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1996<\/span><span class=\"nl-text\"><strong>Arbitration & Conciliation Act, 1996.<\/strong><\/span><\/li>\r\n <li><span class=\"nl-tag\">2002<\/span><span class=\"nl-text\"><strong>Competition Act, 2002.<\/strong><\/span><\/li>\r\n <li><span class=\"nl-tag\">2000<\/span><span class=\"nl-text\"><strong>Information Technology Act, 2000.<\/strong><\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-13\">\r\n <span class=\"section-badge teal\">\u00a7 1.3<\/span>\r\n <h3>Applicability & key definitions<\/h3>\r\n <\/div>\r\n\r\n <p>\"Services\" are defined <em>by exception<\/em>: any subject of procurement other than goods or works (except those incidental to the service). The generic word <strong>\"Services\"<\/strong> means Consultancy <em>and<\/em> Other services together; it excludes appointment of an individual under any law. The guidelines do <strong>not<\/strong> apply to World Bank \/ international-agency-funded projects (covered under <strong>Rule 264, GFR 2017<\/strong>).<\/p>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">Rule 177, GFR 2017<\/div>\r\n <div class=\"cat-title\">Consultancy Services<\/div>\r\n <p>Primarily <strong>non-physical, project-specific, intellectual & procedural<\/strong> processes where deliverables vary by consultant \u2014 management\/policy\/communications consulting, feasibility studies, project management, engineering, finance & taxation, training. <strong>Excludes direct engagement of a retired Government servant.<\/strong><\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">Defined by exclusion<\/div>\r\n <div class=\"cat-title\">Other (Non-consultancy) Services<\/div>\r\n <p>Anything not classifiable as consultancy \u2014 routine, repetitive <strong>physical\/procedural<\/strong> work with tangible standards: transport, logistics, clearing & forwarding, courier, upkeep of buildings\/estates, drilling, aerial photography, satellite imagery, mapping.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">IT Projects \u2192 treated as Consultancy<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Bespoke software development.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Cloud-based services.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Composite IT system integration \u2014 design, development, deployment, commissioning, hardware supply, software, bandwidth and post-go-live operation\/maintenance.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Classification \u2014 Service vs Works vs Goods<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">1.3.4<\/span><span class=\"nl-text\"><strong>Outsourcing<\/strong> = deploying outside agencies on a sustained, long-term basis (<strong>one year or more<\/strong>) for services traditionally done in-house \u2014 security, horticulture, catering, housekeeping, messenger services.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1.3.5<\/span><span class=\"nl-text\">Construction\/repair of <strong>civil assets<\/strong> \u2192 handle as <strong>Works<\/strong>; repair\/AMC\/installation of <strong>mechanical, electrical or ICT assets<\/strong> \u2192 handle as <strong>Goods<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1.3.6<\/span><span class=\"nl-text\">When intellectual\/advisory content <strong>dominates<\/strong> (physical part incidental) \u2192 treat the whole task as <strong>consultancy<\/strong> (e.g. underwater dam-safety inspection where analysis is the crux).<\/span><\/li>\r\n <li><span class=\"nl-tag\">1.3.8<\/span><span class=\"nl-text\">Procuring Entities include Ministries\/Departments, <strong>CPSEs<\/strong>, and bodies substantially owned\/controlled or substantially financed by the Central Government \u2014 but <strong>not<\/strong> procurement for own use from subsidiaries\/JVs in which a controlling share is held.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-14\">\r\n <span class=\"section-badge slate\">\u00a7 1.4<\/span>\r\n <h3>Competent authorities & purchase powers<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Sanction & SoPP \u2014 Rule 145, GFR 2017<\/div>\r\n <p>An authority competent to incur expenditure may sanction procurement of services under the <strong>DFPR<\/strong> (Annexure 2A). <strong>No separate sanction<\/strong> is needed for services distinctly named in an already sanctioned\/approved work or project. Each entity may issue a <strong>Schedule of Procurement Powers (SoPP)<\/strong> adding detail to DFPR delegations based on risk at each stage.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-15\">\r\n <span class=\"section-badge teal\">\u00a7 1.5<\/span>\r\n <h3>Basic aims \u2014 the Five R's of Procurement<\/h3>\r\n <\/div>\r\n\r\n <p>\"Right\" here means <strong>optimal<\/strong>. Every procurement seeks the right balance of cost and requirement across five parameters (framed for goods, but equally applicable to services):<\/p>\r\n\r\n <div class=\"cat-grid four\">\r\n <div class=\"cat-card a\"><div class=\"cat-badge\">R1<\/div><div class=\"cat-title\">Right Quality<\/div><\/div>\r\n <div class=\"cat-card b\"><div class=\"cat-badge\">R2<\/div><div class=\"cat-title\">Right Quantity<\/div><\/div>\r\n <div class=\"cat-card c\"><div class=\"cat-badge\">R3<\/div><div class=\"cat-title\">Right Price<\/div><\/div>\r\n <div class=\"cat-card d\"><div class=\"cat-badge\">R4<\/div><div class=\"cat-title\">Right Time & Place<\/div><\/div>\r\n <div class=\"cat-card e\"><div class=\"cat-badge\">R5<\/div><div class=\"cat-title\">Right Source<\/div><\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-16\">\r\n <span class=\"section-badge purple\">\u00a7 1.6<\/span>\r\n <h3>Five principles of public procurement<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Transparency<\/strong> principle.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Professionalism<\/strong> principle.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Broader obligations<\/strong> principle (includes registration rules for bidders from countries sharing a land border with India).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Extrinsic legal<\/strong> principle.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Public accountability<\/strong> principle.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-17\">\r\n <span class=\"section-badge amber\">\u00a7 1.7<\/span>\r\n <h3>Standards (Canons) of Financial Propriety \u2014 Rule 21, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Rule 21, GFR 2017<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Exercise the same vigilance over public money as a person of <strong>ordinary prudence<\/strong> over their own.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Expenditure should not <em>prima facie<\/em> exceed what the occasion demands.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">No authority should sanction expenditure to its own direct\/indirect advantage.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Public money is not spent for a particular person\/section unless a claim is enforceable in a Court of Law <em>or<\/em> it follows recognised policy\/custom.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Allowances must not become, on the whole, a <strong>source of profit<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\">An authority giving financial concurrence must not later be drawn into roles creating a <strong>conflict of interest<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-18\">\r\n <span class=\"section-badge slate\">\u00a7 1.8<\/span>\r\n <h3>Public procurement infrastructure at the Centre<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">1.8.1<\/div>\r\n <div class=\"cat-title\">Procurement Policy Division (PPD)<\/div>\r\n <p>In the <strong>Department of Expenditure, MoF<\/strong> \u2014 promotes uniformity\/harmonisation, best practices, guidance, oversight, capacity building, issues manuals. <strong>Not<\/strong> meant to centralise procurement.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">1.8.2<\/div>\r\n <div class=\"cat-title\">Central Public Procurement Portal (CPPP)<\/div>\r\n <p>Designed, developed & hosted by <strong>NIC (MeitY)<\/strong> with DoE; has <strong>e-publishing<\/strong> & <strong>e-procurement<\/strong> modules. <strong>Mandatory<\/strong> for all Central Ministries\/Departments, CPSEs and Autonomous\/Statutory bodies to publish all tender enquiries & resulting contracts (<strong>Rule 159, GFR 2017<\/strong>). End-to-end e-procurement is mandatory.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-19\">\r\n <span class=\"section-badge blue\">\u00a7 1.9<\/span>\r\n <h3>Preferential \/ Mandatory purchase from certain sources<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Before applying any preference<\/div>\r\n <p>Check the latest directives first. The purchase-preference provision must always be part of the <strong>Notice Inviting Tender (NIT)<\/strong> and <strong>Instructions to Bidders (ITB)<\/strong>.<\/p>\r\n <\/div>\r\n\r\n <h4>A \u00b7 Policy for Micro & Small Enterprises (MSEs) \u2014 Rule 153(ii), GFR<\/h4>\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">MSE Public Procurement Policy, 2012 (amended 2018 & 2021)<\/div>\r\n <p>Notified under <strong>Section 11 of the MSMED Act, 2006<\/strong>. Applies to <strong>all<\/strong> Central Ministries\/Departments\/CPSUs irrespective of value\/nature (not to State Govt). Only MSEs under <strong>Udyam Registration<\/strong> are eligible.<\/p>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">FREE<\/span><span class=\"nl-text\">MSEs get tender documents <strong>free<\/strong> and <strong>EMD exemption<\/strong>; prior turnover\/experience criteria may be relaxed (quality\/technical specs cannot be diluted). <strong>Performance Bank Guarantee exemption is NOT covered.<\/strong><\/span><\/li>\r\n <li><span class=\"nl-tag\">PAY<\/span><span class=\"nl-text\">Payment to an MSE supplier must not exceed <strong>45 days<\/strong> after supply (MSMED Act Ch. V); delay attracts <strong>compound interest at 3\u00d7 the RBI bank rate<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">L1+15<\/span><span class=\"nl-text\">An MSE quoting within the <strong>L1 + 15%<\/strong> band may supply up to <strong>25%<\/strong> of tendered value by matching L1 (where L1 is a non-MSE); the 25% is shared proportionately.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SC\/ST<\/span><span class=\"nl-text\">Within that 25%, a <strong>4% purchase preference<\/strong> [i.e. 16% of 25%] is reserved for <strong>SC\/ST-owned<\/strong> MSEs and <strong>3%<\/strong> for women entrepreneurs; if unfilled, met from other MSEs.<\/span><\/li>\r\n <li><span class=\"nl-tag\">OWN<\/span><span class=\"nl-text\">\"SC\/ST-owned\": proprietor is SC\/ST; or SC\/ST partners hold \u2265 <strong>51%<\/strong>; or SC\/ST promoters hold \u2265 <strong>51%<\/strong> in a private limited company.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SPLIT<\/span><span class=\"nl-text\">If the item cannot be split, an MSE within the <strong>L1+15%<\/strong> band may be awarded the full tendered value.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Startup relaxation \u2014 Rule 173(i), GFR<\/div>\r\n <p>Prior turnover & experience may be relaxed for <strong>DPIIT-recognised Startups<\/strong> (specs intact). A start-up is an entity:<\/p>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">a<\/span><span class=\"nl-text\">Up to <strong>10 years<\/strong> from incorporation\/registration.<\/span><\/li>\r\n <li><span class=\"nl-tag\">b<\/span><span class=\"nl-text\">Turnover in any financial year has <strong>not exceeded \u20b9100 crore<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">c<\/span><span class=\"nl-text\">Working towards innovation\/improvement or a scalable, high-employment model.<\/span><\/li>\r\n <li><span class=\"nl-tag\">d<\/span><span class=\"nl-text\">Must be <strong>recognised by DPIIT<\/strong> to claim benefits.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">MSE policy \u2014 institutional machinery & limits<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">EXCL<\/span><span class=\"nl-text\">Covers only goods produced \/ services rendered by MSEs; <strong>traders, distributors, sole agents and works contracts are excluded<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DEF<\/span><span class=\"nl-text\"><strong>Exemption:<\/strong> defence armament imports are excluded from the 20% goal for M\/o Defence; weapon systems\/missiles stay out of the reservation policy.<\/span><\/li>\r\n <li><span class=\"nl-tag\">RC<\/span><span class=\"nl-text\"><strong>Review Committee<\/strong> chaired by Secretary, M\/o MSME reviews the list of <strong>358 items<\/strong> reserved for exclusive MSE purchase and exemption requests from the 25% target.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PORTAL<\/span><span class=\"nl-text\"><strong>MSME Sambandh<\/strong> (8 Dec 2017) tracks CPSU procurement; <strong>CHAMPION<\/strong> portal redresses grievances; NSIC runs the <strong>SPRS<\/strong> and a <strong>National SC\/ST Hub<\/strong> (Oct 2016).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <h4>B \u00b7 Preference to Make in India \u2014 Rule 153(iii), GFR \/ PPP-MII Order 2017<\/h4>\r\n <p>Issued by <strong>DPIIT<\/strong>; applies to goods, works <em>and<\/em> services. <strong>L1<\/strong> = lowest bid adjudged in evaluation; <strong>margin of purchase preference = 20%<\/strong>; works includes <strong>EPC<\/strong> contracts; services includes <strong>System Integrator (SI)<\/strong> contracts.<\/p>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:30%\"><col style=\"width:24%\"><col style=\"width:46%\"><\/colgroup>\r\n <thead><tr><th>Supplier class<\/th><th>Min. local content<\/th><th>Eligibility<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Class-I local supplier<\/td><td class=\"code-cell\">\u2265 50%<\/td><td>Eligible for purchase preference; sole eligible class where the Nodal Ministry notifies sufficient local capacity\/competition.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Class-II local supplier<\/td><td class=\"code-cell\">\u2265 20%<\/td><td>May bid but gets <strong>no<\/strong> purchase preference.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Non-local supplier<\/td><td class=\"code-cell\">< 20%<\/td><td>Eligible only when a <strong>Global Tender Enquiry<\/strong> is issued.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Purchase preference mechanics & thresholds<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">DIV<\/span><span class=\"nl-text\"><strong>Divisible<\/strong> goods\/works: if L1 is not Class-I, <strong>50%<\/strong> goes to L1, and the lowest Class-I within the 20% margin is invited to match L1 for the remaining 50%.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NON-DIV<\/span><span class=\"nl-text\"><strong>Non-divisible<\/strong> items & price-only services: the lowest Class-I within the margin is invited to match L1; if none match, award may go to L1.<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b95 lakh<\/span><span class=\"nl-text\">Procurements with estimated value <strong>below \u20b95 lakh are exempt<\/strong> (no splitting to evade it).<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b9200 cr<\/span><span class=\"nl-text\">For purchases <strong>under \u20b9200 crore<\/strong> a Global Tender Enquiry is generally not issued without competent-authority approval (Rule 161(iv)).<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b910 cr<\/span><span class=\"nl-text\">Local content is <strong>self-certified<\/strong>; <strong>above \u20b910 crore<\/strong>, a statutory\/cost-auditor or practising CA\/cost-accountant certificate is required.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FALSE<\/span><span class=\"nl-text\">False declarations breach the Code of Integrity [Rule 175(1)(i)(h)] \u2192 debarment up to <strong>2 years<\/strong> [Rule 151(iii)].<\/span><\/li>\r\n <li><span class=\"nl-tag\">EXEMPT<\/span><span class=\"nl-text\">The administrative Department, with its <strong>Minister-in-charge's<\/strong> approval and reasons recorded, may reduce min. local content, reduce the margin below 20%, or exempt an item\/entity. A <strong>Standing Committee<\/strong> chaired by Secretary DPIIT oversees the Order.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-110\">\r\n <span class=\"section-badge blue\">\u00a7 1.10\u20131.11<\/span>\r\n <h3>When is procurement of services justified?<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Consultancy \u2014 Rules 178 & 180, GFR (prior CA approval required)<\/div>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Inadequate in-house capability\/capacity.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Need for a qualified consultant for specialised, high-quality service.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Need for <strong>impartial advice<\/strong> free of conflicts of interest.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Transfer of knowledge \/ training \/ capacity-building as a by-product.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Acquiring information \/ new methods & systems.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\">Planning & implementing organisational change.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vii<\/span><span class=\"nl-text\">Economy, speed & efficiency vs. extra commitment of staff, resources, money & time.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Two-stage rule (1.11)<\/div>\r\n <p>Consultancy is best procured by <strong>unrestricted competition among shortlisted firms<\/strong> in a <strong>two-stage process<\/strong> (quality, then cost). Other services use a simpler process like that for Goods\/Works (Chapter 9). Engagements must be <strong>economical & efficient<\/strong> (Rule 182), with transparency & integrity (Rule 179).<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-112\">\r\n <span class=\"section-badge purple\">\u00a7 1.12\u20131.13<\/span>\r\n <h3>Law of Agency & proactive (RTI) disclosure<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"icon-list\">\r\n <li><span class=\"ico\">⚖️<\/span><span><strong>Law of Agency:<\/strong> a consultant\/service provider acts as an <strong>Agent<\/strong> of the Procuring Entity (Principal), governed by <strong>Sections 182\u2013238 of the Indian Contract Act, 1872<\/strong>. The Procuring Entity is <strong>vicariously liable<\/strong> for its agents' actions (e.g. labour-law violations by deputed staff); Standard Bidding Documents must address this.<\/span><\/li>\r\n <li><span class=\"ico\">📄<\/span><span><strong>RTI proactive disclosure:<\/strong> <strong>Section 4(1)(b)<\/strong> mandates suo-motu disclosure; <strong>Sections 4(2) & 4(3)<\/strong> prescribe dissemination. Procurement notices\/tender enquiries, corrigenda, and bid-award details (vendor name, rate, total) must be disclosed under Section 4.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-114\">\r\n <span class=\"section-badge gold\">\u00a7 1.14\u20131.15<\/span>\r\n <h3>Procurement cycle & the Concept Paper<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Prepare <strong>Concept Paper \/ Procurement Proposal<\/strong> and obtain in-principle approval.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Prepare <strong>ToR<\/strong> (consultancy) \/ <strong>Activity Schedule<\/strong> (other services), cost estimate; seek administrative & budgetary approval.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Shortlist consultants via <strong>EoI<\/strong> \u2014 formulate, publish, receive & evaluate.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Issue <strong>RfP<\/strong>; evaluate technical then financial proposals; select; negotiate; award.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Monitor<\/strong> the assignment.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Concept Paper \u2014 Rule 181, GFR (plays the role of an Indent for goods)<\/div>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Purpose\/Objective Statement<\/strong> \u2014 describes the subject matter; shows fit with short-term & strategic goals.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Service Outcome Statement<\/strong> \u2014 qualitative\/quantitative outcomes, time-frame, rough cost estimate (to fix the approval level under SoPP).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Justification<\/strong> \u2014 required vs in-house capability, justified per para 1.10.1.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\">In-principle administrative approval & budgetary sanction by the Competent Authority (per SoPP) must precede further stages.<\/p>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz1\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 1 Quiz \u2014 framework, definitions & preferences<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 1. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage1\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore1\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext1\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c1-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 1 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Apex statutory provision<\/td><td><strong>Article 299<\/strong>; <strong>no<\/strong> exclusive procurement law<\/td><\/tr>\r\n <tr><td>Mandatory GeM purchase<\/td><td><strong>Rule 149, GFR 2017<\/strong><\/td><\/tr>\r\n <tr><td>Consultancy definition<\/td><td><strong>Rule 177<\/strong> \u2014 intellectual\/procedural; excludes <strong>retired Govt servants<\/strong><\/td><\/tr>\r\n <tr><td>Outsourcing duration<\/td><td>Sustained engagement of <strong>\u2265 1 year<\/strong><\/td><\/tr>\r\n <tr><td>Nodal authority<\/td><td><strong>PPD, Dept. of Expenditure, MoF<\/strong><\/td><\/tr>\r\n <tr><td>Five R's<\/td><td>Right <strong>quality, quantity, price, time & place, source<\/strong><\/td><\/tr>\r\n <tr><td>Canons of propriety<\/td><td><strong>Rule 21, GFR<\/strong> \u2014 ordinary-prudence vigilance<\/td><\/tr>\r\n <tr><td>CPPP<\/td><td>Hosted by <strong>NIC (MeitY)<\/strong>; publishing mandatory \u2014 <strong>Rule 159<\/strong><\/td><\/tr>\r\n <tr><td>MSE payment limit<\/td><td><strong>45 days<\/strong>; delay \u2192 compound interest at <strong>3\u00d7 RBI bank rate<\/strong><\/td><\/tr>\r\n <tr><td>MSE price band<\/td><td><strong>L1 + 15%<\/strong> \u2192 up to <strong>25%<\/strong>; SC\/ST <strong>4%<\/strong>, women <strong>3%<\/strong><\/td><\/tr>\r\n <tr><td>Make-in-India<\/td><td>Margin <strong>20%<\/strong>; Class-I \u2265 <strong>50%<\/strong>, Class-II \u2265 <strong>20%<\/strong> local content<\/td><\/tr>\r\n <tr><td>MII thresholds<\/td><td>Exempt below <strong>\u20b95 lakh<\/strong>; auditor cert above <strong>\u20b910 cr<\/strong>; GTE rule below <strong>\u20b9200 cr<\/strong><\/td><\/tr>\r\n <tr><td>Startup<\/td><td><strong>\u2264 10 yrs<\/strong>, turnover <strong>\u2264 \u20b9100 cr<\/strong>, DPIIT-recognised (Rule 173(i))<\/td><\/tr>\r\n <tr><td>Concept Paper<\/td><td><strong>Rule 181<\/strong> \u2014 Purpose + Outcome + Justification<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch2\" data-chapter=\"2\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c2-21\">\r\n <span class=\"chapter-badge\">CH 2 \u00b7 GOVERNANCE<\/span>\r\n <h2>Consultants, Service Providers & Governance Issues<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">What this chapter covers<\/div>\r\n <div class=\"def-text\">\r\n Who the players are, the ethics they must observe (the <strong>Code of Integrity for Public Procurement<\/strong>), the <strong>Integrity Pact<\/strong> tool with its Independent External Monitors, and the rules for <strong>debarring<\/strong> errant firms under Rule 151 of the GFR 2017.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">2.1.1<\/div>\r\n <div class=\"cat-title\">Consortium \/ JV<\/div>\r\n <p>For large\/complex assignments, firms associate as a <strong>Joint Venture<\/strong> or sub-consultancy. In a JV all members sign and are <strong>jointly & severally liable<\/strong>; one becomes the <strong>lead member<\/strong> \u2014 the Procuring Entity deals only with the lead.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">2.1.2<\/div>\r\n <div class=\"cat-title\">Consultancy \/ Service Firms<\/div>\r\n <p>The main source \u2014 classed as <strong>international<\/strong> (international experience & rates) or <strong>national<\/strong> (usually domestic, lower rates).<\/p>\r\n <\/div>\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">2.1.3<\/div>\r\n <div class=\"cat-title\">Individual Consultants<\/div>\r\n <p>Used when a full team isn't needed. <strong>If more than three experts are required, a firm's team should be used.<\/strong> Not normally used for project preparation unless simple\/repeat.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">2.1.4\u20132.1.5<\/div>\r\n <div class=\"cat-title\">Specialised Agencies \/ NGOs<\/div>\r\n <p>Govt\/semi-govt agencies, universities, institutions; <strong>NGOs<\/strong> are advantageous where community participation\/local knowledge matters (e.g. CSR projects).<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">JV qualification norms (illustrative thresholds)<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">VALUE<\/span><span class=\"nl-text\">JVs may be allowed for complex\/large assignments above a value (say <strong>\u20b95 crore<\/strong>); maximum partners limited (say <strong>three<\/strong>).<\/span><\/li>\r\n <li><span class=\"nl-tag\">SHARE<\/span><span class=\"nl-text\">Each partner should meet at least <strong>25%<\/strong>, and the <strong>lead partner at least 50%<\/strong>, of the qualifying limit for experience & financial turnover.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ONE<\/span><span class=\"nl-text\"><strong>Conflicting Association:<\/strong> a firm may submit only <strong>one proposal<\/strong>; submitting\/participating in more than one \u2192 <strong>all such proposals disqualified<\/strong> (sub-consultant\/team-member in more than one only if the RfP permits).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Retired Government Servant \u2014 Rule 177, GFR<\/div>\r\n <p>Consulting services <strong>do not include<\/strong> direct engagement of retired Government servants; they cannot be engaged against regular vacant posts, only for a <strong>specific task and duration<\/strong> with clear output-related goals.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22\">\r\n <span class=\"section-badge red\">\u00a7 2.2<\/span>\r\n <h3>Code of Integrity for Public Procurement (CIPP)<\/h3>\r\n <\/div>\r\n\r\n <p>Officials and bidders\/suppliers\/consultants must sign declarations to abide by CIPP. Transgression can lead to removal from registered lists, contract cancellation, banning\/blacklisting, or action before the <strong>Competition Commission of India<\/strong>. Six prohibited practices:<\/p>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Six prohibited practices<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Corrupt practice<\/strong> \u2014 offering\/soliciting\/accepting bribes, rewards, gifts or benefits for unfair advantage.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Fraudulent practice<\/strong> \u2014 any omission\/misrepresentation to mislead for benefit or to avoid an obligation; false declarations\/information.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Anti-competitive practice<\/strong> \u2014 collusion, bid rigging, or arrangements under the Competition Act, 2002 setting artificial prices.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Coercive practice<\/strong> \u2014 harming\/threatening persons or property to influence participation or execution.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Conflict of interest<\/strong> \u2014 affiliations across bids, relationships\/transactions with officials, or misuse of information for unfair gain.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\"><strong>Obstructive practice<\/strong> \u2014 destroying\/falsifying evidence, false statements to investigators, or impeding audit\/access rights.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22c\">\r\n <span class=\"section-badge purple\">\u00a7 2.2.3\u20132.2.5<\/span>\r\n <h3>Conflict of interest & proactive disclosure<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Disqualifying situations for a consultant<\/div>\r\n <p>A consultant must give <strong>professional, objective, impartial<\/strong> advice, hold the client's interest paramount, and <strong>disclose<\/strong> any conflict (failure \u2192 disqualification\/termination). Unless the RfP data sheet says otherwise, a consultant must <strong>not<\/strong> be hired where there is:<\/p>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">a<\/span><span class=\"nl-text\"><strong>Conflicting activities<\/strong> \u2014 a firm (or affiliate) providing goods\/works\/non-consultancy for a project is barred from related consultancy, and vice-versa.<\/span><\/li>\r\n <li><span class=\"nl-tag\">b<\/span><span class=\"nl-text\"><strong>Conflicting assignments<\/strong> \u2014 an assignment that by nature conflicts with another of the consultant.<\/span><\/li>\r\n <li><span class=\"nl-tag\">c<\/span><span class=\"nl-text\"><strong>Conflicting relationships<\/strong> \u2014 close business\/family ties with Procuring-Entity staff involved in ToR preparation, selection or supervision, unless resolved acceptably.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\"><strong>Unfair Competitive Advantage<\/strong> is avoided by issuing the RfP and all information to all shortlisted consultants <strong>simultaneously<\/strong>.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Obligations for proactive disclosure (2.2.5)<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Parties must <strong>suo-moto<\/strong> declare any conflict of interest as it arises.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">A bidder must declare any prior transgression of an integrity code, or being debarred, in the <strong>last three years<\/strong> \u2014 asked or not.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Voluntary disclosure does <strong>not<\/strong> mean automatic disqualification; the conflict may be evaluated and mitigated.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22p\">\r\n <span class=\"section-badge red\">\u00a7 2.2.6<\/span>\r\n <h3>Punitive provisions for violating CIPP<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Graded measures<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">BID<\/span><span class=\"nl-text\"><strong>If bid under consideration:<\/strong> forfeit\/encash bid security; call off pre-contract negotiations; reject & exclude the bidder.<\/span><\/li>\r\n <li><span class=\"nl-tag\">AWARD<\/span><span class=\"nl-text\"><strong>If contract awarded:<\/strong> cancel & recover loss; forfeit other security\/bond; recover payments made <strong>with interest<\/strong> at the prevailing rate.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PLUS<\/span><span class=\"nl-text\"><strong>Additional:<\/strong> removal from registered list & banning for <strong>not less than one year<\/strong>; reference to CCI (filed by a <strong>Joint Secretary-level<\/strong> officer) for anti-competitive practices; disciplinary\/criminal proceedings.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22r\">\r\n <span class=\"section-badge amber\">\u00a7 2.2.7<\/span>\r\n <h3>Conduct of public servants \u2014 risks & mitigations<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:26%\"><col style=\"width:74%\"><\/colgroup>\r\n <thead><tr><th>Risk area<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Hospitality<\/td><td>Never solicit, directly or indirectly. Must not involve significant travel, overnight stay or trips abroad, or publicly identify a recipient with a firm. Extra care with firms in current\/imminent tenders.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Gifts<\/td><td>Never solicit. Do not accept\/retain gifts above the conduct-rule limit. <strong>Cash, gift cheques or cash-exchangeable vouchers are never acceptable, regardless of amount.<\/strong> Inadvertent gifts \u2192 returned or deposited in the <strong>Toshakhana\/Treasury<\/strong>.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Private purchases<\/td><td>Do not seek\/accept special facilities or discounts on private purchases from suppliers\/contractors with whom there are official dealings (especially Rate-Contract holders).<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Event sponsorship<\/td><td>Never engage in non-official pecuniary transactions \u2014 no soliciting sponsorship\/donations for cultural, social, sporting, religious or charitable events from contractors\/suppliers.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-23\">\r\n <span class=\"section-badge blue\">\u00a7 2.3<\/span>\r\n <h3>Integrity Pact (IP) & Independent External Monitors<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">What the Pact does<\/div>\r\n <p>A <strong>pre-bid Integrity Pact<\/strong> binds buyer and seller to ethical conduct\/transparency from pre-selection through completion. Entering it is a <strong>preliminary qualification<\/strong> \u2014 a bid without a duly signed IP is <strong>non-responsive and rejected<\/strong>. MoF\/DoE mandated <strong>15 Ministries\/Departments<\/strong> to adopt IP above a threshold value; the threshold should cover the <strong>bulk (80\u201390%)<\/strong> of procurement expenditure, decided with the Minister-in-charge's approval.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Essential ingredients of the Pact<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Procuring Entity promises equity & reason; no illegitimate benefit sought\/accepted.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Bidders promise no illegitimate benefit to officials; no offence under the <strong>Prevention of Corruption Act, 1988<\/strong> or <strong>IPC 1860<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">No undisclosed agreement among bidders on prices\/specs\/sub-contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Fall Clause<\/strong> \u2014 bidders have not \/ will not sell the same item below the bid price.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Foreign bidders disclose Indian agents; Indian bidders disclose foreign principals.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\">Disclose payments to agents\/brokers\/intermediaries; and past transgressions over the specified period.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Independent External Monitors (IEMs)<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">NUM<\/span><span class=\"nl-text\">Up to <strong>three<\/strong> IEMs, of high integrity, below <strong>70 years<\/strong>, selected in consultation with and approved by the <strong>CVC<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WHO<\/span><span class=\"nl-text\">Officers retired from <strong>top management<\/strong> of GoI departments\/PSUs (not the same organisation); eminent persons, retired High\/Supreme Court judges and senior private-sector executives may also qualify.<\/span><\/li>\r\n <li><span class=\"nl-tag\">TERM<\/span><span class=\"nl-text\">Initial <strong>3 years<\/strong>, extendable by <strong>2 years<\/strong> \u2014 maximum tenure <strong>5 years<\/strong>. At least one IEM is named in the NIT.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ROLE<\/span><span class=\"nl-text\">Independent & neutral; access to all documents\/books on allegation; ideally meet <strong>once every two months<\/strong>; recommendations are <strong>advisory, not legally binding<\/strong>; may report serious irregularities directly to the CVC. The CVO's role is unaffected.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-24\">\r\n <span class=\"section-badge slate\">\u00a7 2.4<\/span>\r\n <h3>Debarment of suppliers \/ contractors \/ consultants<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Rule 151, GFR 2017 \u2014 debarment from bidding<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">A bidder is debarred if convicted under the <strong>Prevention of Corruption Act, 1988<\/strong>, or under the IPC\/any law for loss of life\/property or threat to public health during a public procurement contract.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Such a bidder (or successor) is ineligible across <strong>any<\/strong> procuring entity for a period <strong>not exceeding 3 years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">A procuring entity may debar for breaching the Code of Integrity for a period <strong>not exceeding 2 years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">No debarment without a <strong>reasonable opportunity<\/strong> to represent.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">Type 1<\/div>\r\n <div class=\"cat-title\">Debarment by a Single Ministry<\/div>\r\n <p>Issued by the Ministry itself; period <strong>\u2264 2 years<\/strong>; applies only to that Ministry & its attached\/subordinate offices, autonomous bodies, CPSUs \u2014 <strong>not circulated<\/strong>. A <strong>JS\/Additional Secretary<\/strong> may be the competent authority. Debarment is an <strong>executive function<\/strong>, not for the Vigilance Department.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">Type 2<\/div>\r\n <div class=\"cat-title\">Debarment across All Ministries<\/div>\r\n <p>Issued by <strong>DoE, MoF<\/strong> after the proposing Ministry (with Secretary's approval) sends a self-contained note; DoE verifies conformity with <strong>Rule 151<\/strong>. The firm stays in suspension only in the proposing Ministry pending DoE's decision; DoE may also act <strong>suo-moto<\/strong>.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Key definitions & common provisions<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">ALLIED<\/span><span class=\"nl-text\">\"Allied firms\" \u2014 concerns under the debarred firm's effective influence (common management, majority interest\/shares, control). <strong>All successor firms<\/strong> are allied; debarment extends automatically to all allied firms.<\/span><\/li>\r\n <li><span class=\"nl-tag\">JV<\/span><span class=\"nl-text\">If a JV\/consortium is debarred, <strong>all partners<\/strong> stand debarred for the specified period (named in the order).<\/span><\/li>\r\n <li><span class=\"nl-tag\">MIN<\/span><span class=\"nl-text\">Ordinarily, the debarment period should be <strong>not less than six months<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">L1<\/span><span class=\"nl-text\">A debarred firm's bid is ignored; if it was L-1, the <strong>next lowest becomes L-1<\/strong> and its bid security is returned.<\/span><\/li>\r\n <li><span class=\"nl-tag\">START<\/span><span class=\"nl-text\">Period starts from the <strong>date of issue<\/strong> of the order. Contracts concluded <strong>before<\/strong> the order are unaffected. GeM may debar up to <strong>2 years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">REVOKE<\/span><span class=\"nl-text\">An order is <strong>automatically revoked<\/strong> on expiry (no formal order needed); early revocation by the competent authority if the disability already suffered is adequate.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz2\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 2 Quiz \u2014 players, integrity & debarment<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 2. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage2\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore2\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext2\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c2-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 2 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Individual vs team<\/td><td>More than <strong>3 experts<\/strong> \u2192 use a firm's team<\/td><\/tr>\r\n <tr><td>JV liability<\/td><td><strong>Jointly & severally liable<\/strong>; lead \u2265 <strong>50%<\/strong>, others \u2265 <strong>25%<\/strong> of qualifying limit<\/td><\/tr>\r\n <tr><td>One-proposal rule<\/td><td>Multiple proposals by one firm \u2192 <strong>all disqualified<\/strong><\/td><\/tr>\r\n <tr><td>CIPP prohibited practices<\/td><td><strong>6<\/strong>: corrupt, fraudulent, anti-competitive, coercive, conflict of interest, obstructive<\/td><\/tr>\r\n <tr><td>Cash gifts<\/td><td><strong>Never<\/strong> acceptable; inadvertent \u2192 <strong>Toshakhana\/Treasury<\/strong><\/td><\/tr>\r\n <tr><td>CCI referral<\/td><td>Filed by a <strong>Joint Secretary-level<\/strong> officer<\/td><\/tr>\r\n <tr><td>Integrity Pact reach<\/td><td><strong>15 Ministries<\/strong>; threshold to cover <strong>80\u201390%<\/strong> of spend<\/td><\/tr>\r\n <tr><td>IEMs<\/td><td>Max <strong>3<\/strong>, age < <strong>70<\/strong>, term <strong>3+2 = 5 yrs<\/strong>, CVC-approved, advice <strong>not binding<\/strong><\/td><\/tr>\r\n <tr><td>Debarment \u2014 conviction<\/td><td><strong>\u2264 3 years<\/strong>, all entities (Rule 151)<\/td><\/tr>\r\n <tr><td>Debarment \u2014 integrity breach<\/td><td><strong>\u2264 2 years<\/strong>, single entity; ordinarily <strong>\u2265 6 months<\/strong><\/td><\/tr>\r\n <tr><td>All-Ministry debarment<\/td><td>Issued by <strong>DoE, MoF<\/strong>; allied & successor firms auto-included<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch3\" data-chapter=\"3\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c3-31\">\r\n <span class=\"chapter-badge\">CH 3 \u00b7 CONTRACTS & SELECTION<\/span>\r\n <h2>Types of Contracts & Systems of Selection<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">What this chapter does<\/div>\r\n <div class=\"def-text\">\r\n It fixes how payment is linked to performance (<strong>contract types<\/strong>) and how the right consultant is chosen (<strong>LCS, QCBS, SSS, FBS<\/strong>). The choice of contract type should follow <strong>Value-for-Money (VfM)<\/strong>; an inappropriate type can cause poor competition, disputes and failure.\r\n <\/div>\r\n <\/div>\r\n\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Lump Sum<\/strong> (Firm Fixed Price).<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Time-Based<\/strong> (Retainer-ship).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Percentage<\/strong> (Success Fee).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Retainer-ship cum Success Fee<\/strong> (combination).<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Indefinite Delivery<\/strong> contract.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">For other (non-consultancy) services<\/div>\r\n <p>Depending on nature: Lump-sum, Time-based, or <strong>unit\/item-rate<\/strong> contracts (e.g. taxi per km) \u2014 as in Goods\/Works \u2014 or a mix. Indefinite-delivery (time or unit-rate) suits uncertain but regular needs.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-32\">\r\n <span class=\"section-badge teal\">\u00a7 3.2<\/span>\r\n <h3>Lump Sum (Firm Fixed Price) Contract<\/h3>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">The preferred default<\/div>\r\n <div class=\"def-text\">\r\n Fixed price for a fixed scope; payments linked to clearly specified <strong>outputs\/milestones\/deliverables<\/strong>. The consultant's proposal includes all prices \u2014 <strong>no arithmetical correction or price adjustment<\/strong> during evaluation. Easy to administer. Used for simple planning\/feasibility studies, environmental studies, standard design, data-processing systems.\r\n <\/div>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Quality\/scope of output not linked to payment \u2014 temptation to cut corners; disputes over interpretation.<\/td><td>Use where quality, scope & timing are clearly defined; record acceptance; <strong>pay only against a certificate of acceptance<\/strong>.<\/td><\/tr>\r\n <tr><td>Time over-run, since time is not linked to payment.<\/td><td>Monitor output <strong>per month<\/strong> against the planned time-line.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-33\">\r\n <span class=\"section-badge amber\">\u00a7 3.3<\/span>\r\n <h3>Time-Based (Retainer-ship) Contract<\/h3>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">When scope is hard to define<\/div>\r\n <div class=\"def-text\">\r\n Payment on agreed <strong>hourly\/daily\/weekly\/monthly rates<\/strong> for staff (named in consultancy) plus reimbursables; rates include salary, social costs, overhead, fee\/profit, allowances. Used when Lump Sum isn't feasible \u2014 complex studies, construction supervision, advisory services, most training.\r\n <\/div>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Quality\/scope not linked to payment.<\/td><td>Evaluate quality\/scope; release payment only against acceptance certificates.<\/td><\/tr>\r\n <tr><td>Performance per period not linked to payment \u2014 dilatory use of paid staff.<\/td><td>Close monitoring; <strong>monthly reporting<\/strong> of payouts & work achieved to the CA.<\/td><\/tr>\r\n <tr><td>Time & cost over-run \u2014 major risk; delay benefits the consultant.<\/td><td>Include an <strong>upper limit of total payments<\/strong>; once reached or period exceeded, the <strong>CA reviews<\/strong> any extension.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-34\">\r\n <span class=\"section-badge purple\">\u00a7 3.4\u20133.5<\/span>\r\n <h3>Percentage & Retainer-cum-Success Fee Contracts<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">3.4<\/div>\r\n <div class=\"cat-title\">Percentage (Success \/ Contingency Fee)<\/div>\r\n <p>Fee tied to estimated\/actual <strong>project cost<\/strong> (or cost of goods procured\/inspected); paid after success. Selection: among technically qualified, the <strong>lowest percentage<\/strong> quoted wins. Used for architectural services, procurement & inspection agents. <strong>Risk:<\/strong> bias against economic design \u2014 so for architectural services, recommended only on a <strong>fixed target cost<\/strong> with precisely defined services.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">3.5<\/div>\r\n <div class=\"cat-title\">Retainer + Success Fee<\/div>\r\n <p>Combines a <strong>time-based retainer<\/strong> (monthly) with a <strong>percentage success fee<\/strong>. Used when banks\/financial firms prepare companies for sales\/mergers (notably privatisation) and for organisational restructuring. <strong>All risks of both Percentage and Time-Based<\/strong> apply, with the same mitigations.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-36\">\r\n <span class=\"section-badge gold\">\u00a7 3.6<\/span>\r\n <h3>Indefinite Delivery Contract (Price Agreement)<\/h3>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">\"On-call\" services<\/div>\r\n <div class=\"def-text\">\r\n For specialised services whose extent\/timing cannot be defined in advance \u2014 akin to <strong>Rate\/Framework Contracts<\/strong> for goods. No commitment on quantum; parties agree <strong>unit rates<\/strong> and payment follows actual time\/quantum used; the provider is selected on the <strong>unit rate quoted<\/strong>. Used for on-call advisers, dispute-resolution adjudicators, procurement advice, document management, taxi services, temporary manpower \u2014 usually over a year or more.\r\n <\/div>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td><strong>Over-utilisation<\/strong> \u2014 usage may exceed actual need as scrutiny is less intense.<\/td><td>Scrutinise need assessment; lay down a <strong>maximum contract value<\/strong>; CA approval to exceed it; escalate reporting above a monthly payout benchmark.<\/td><\/tr>\r\n <tr><td>Quality\/scope & per-period performance not linked to payment.<\/td><td>Pay only against acceptance certificates; close monitoring with monthly reporting.<\/td><\/tr>\r\n <tr><td>Time & cost over-run.<\/td><td>Include an <strong>upper limit of total payments<\/strong>; CA reviews extension once reached\/exceeded.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-37\">\r\n <span class=\"section-badge blue\">\u00a7 3.7<\/span>\r\n <h3>Systems of selection of service providers<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Two-stage process & shortlist size<\/div>\r\n <p>Because consultancy quality is not tangibly measurable, selection is normally a <strong>two-stage process<\/strong>: first shortlist capable sources (via <strong>EoI<\/strong> advertisement), then invite shortlisted firms to submit technical & financial proposals in separate sealed envelopes. <strong>Technical proposals are evaluated without access to the financial part<\/strong>; financial proposals open only after quality evaluation.<\/p>\r\n <\/div>\r\n\r\n <div class=\"info-row\">\r\n <div class=\"info-card\"><div class=\"ic-big\">3<\/div><div class=\"ic-cap\">Minimum shortlist size<\/div><\/div>\r\n <div class=\"info-card t-teal\"><div class=\"ic-big\">8<\/div><div class=\"ic-cap\">Maximum shortlist size<\/div><\/div>\r\n <div class=\"info-card t-amber\"><div class=\"ic-big\">2<\/div><div class=\"ic-cap\">Stages of selection<\/div><\/div>\r\n <\/div>\r\n\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Least Cost Selection (LCS)<\/strong> \u2014 price-based.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Quality & Cost Based Selection (QCBS)<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Single Source Selection (SSS)<\/strong> \u2014 direct.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Other services & the single-bid question<\/div>\r\n <p>Other (non-consultancy) services normally use <strong>lowest-price (L-1)<\/strong> selection (like Goods\/Works); SSS only in special cases. A <strong>single bid is not automatically invalid<\/strong> \u2014 re-bidding has costs (re-tender cost, delay, possibly higher price). A single bid is valid if: (1) the procurement was <strong>satisfactorily advertised<\/strong> with sufficient time, (2) qualification criteria were <strong>not unduly restrictive<\/strong>, and (3) <strong>prices are reasonable<\/strong> vs market values.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-38\">\r\n <span class=\"section-badge teal\">\u00a7 3.8<\/span>\r\n <h3>Least Cost Selection (LCS) \u2014 Rule 193, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">How LCS works \u2014 the default method<\/div>\r\n <p>Technical & financial proposals are submitted together. A minimum qualifying mark (benchmark <strong>normally 75 out of 100<\/strong>) is set, or a simpler <strong>pass\/fail<\/strong> criterion (e.g. \u2265 2 similar assignments; turnover \u2265 \u20b910 crore). Technical proposals open & are evaluated first; only technically responsive offers proceed and the <strong>financial bids of non-responsive bidders are returned unopened<\/strong>. Among the responsive, the <strong>L-1 offer wins on price alone<\/strong> \u2014 no weightage to technical marks.<\/p>\r\n <p style=\"margin:0;\">LCS is the <strong>simplest and quickest<\/strong> method and the <strong>default<\/strong> for standard\/routine assignments; any other method needs justification. (In the 2006 MoF Manual this was confusingly called QCBS.)<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-39\">\r\n <span class=\"section-badge purple\">\u00a7 3.9<\/span>\r\n <h3>Quality & Cost Based Selection (QCBS) \u2014 Rule 192, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">How QCBS works<\/div>\r\n <p>Benchmark for quality is <strong>normally 70\u201380 out of 100<\/strong>. Each responsive bid gets a <strong>quality score<\/strong> \/100; financial proposals of responsive bidders open (others returned unopened) and get a <strong>cost score<\/strong> (100 for the lowest, pro-rated for higher). The <strong>weighted total<\/strong> decides the winner. Typical weightage: <strong>cost 30% \/ technical 70%<\/strong> (technical should <strong>never exceed 80%<\/strong>); 40:60 or 50:50 are also used. A 100% cost weight approximates LCS. Used for <strong>highly complex, critical<\/strong> assignments. (In the 2006 Manual: \"CQCCBS\".)<\/p>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:46%\"><col style=\"width:30%\"><col style=\"width:24%\"><\/colgroup>\r\n <thead><tr><th>Assignment description<\/th><th>Remarks<\/th><th>Quality \/ Cost (%)<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Highly complex \/ downstream consequences \/ specialised<\/td><td>QCBS with higher technical weightage<\/td><td class=\"code-cell\">80 \/ 20<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Moderate complexity<\/td><td>Majority of cases fall here<\/td><td class=\"code-cell\">75\u201365 \/ 35\u201325<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Standard \/ routine (auditors, procurement agents)<\/td><td>LCS is appropriate<\/td><td class=\"code-cell\">60\u201350 \/ 40\u201350<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">QCBS \u2014 key risks<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">SEL<\/span><span class=\"nl-text\">QCBS chosen where LCS\/other would fit better \u2014 justify & apply only in the right circumstances.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WT<\/span><span class=\"nl-text\">Weightage other than <strong>70:30<\/strong> must be adequately examined & justified.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SUBJ<\/span><span class=\"nl-text\">Marking subjectivity \u2014 lay down objective marking; grade unavoidable subjectivity; have conciliation\/moderation of disparate marks.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-310\">\r\n <span class=\"section-badge red\">\u00a7 3.10<\/span>\r\n <h3>Single Source Selection (SSS) \u2014 Rule 194, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">When direct selection is permissible<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">A <strong>natural continuation<\/strong> of previous work by the firm.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Emergency<\/strong>\/post-disaster situations where timely completion is critical.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Proprietary techniques<\/strong> or only one consultant with the requisite expertise.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Using expertise of other <strong>PSUs\/Government organisations<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Special circumstances with full justification recorded in file & competent-authority approval beforehand.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\">Prices must be <strong>reasonable & consistent with market rates<\/strong> and services <strong>not split<\/strong> to avoid competition.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Reporting of nomination awards (3.10.2)<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">WHO<\/span><span class=\"nl-text\">Reported to the <strong>Secretary<\/strong> (ministries\/departments), the <strong>Board of Directors<\/strong> (PSUs\/banks\/insurers), or the <strong>Chief Executive<\/strong> where no board exists.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FREQ<\/span><span class=\"nl-text\">A report on nomination awards is submitted <strong>every quarter<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">AUDIT<\/span><span class=\"nl-text\">The audit committee may be required to check <strong>at least 10%<\/strong> of such cases.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-311\">\r\n <span class=\"section-badge gold\">\u00a7 3.11<\/span>\r\n <h3>Fixed Budget \u2013 based Selection (FBS)<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">FBS \u2014 budget specified in the tender<\/div>\r\n <p>Beyond QCBS, LCS and SSS, <strong>FBS<\/strong> is also allowed. The cost of consulting services is fixed as a <strong>budget stated in the tender document<\/strong>. FBS is used when:<\/p>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">The services are <strong>simple and\/or repetitive<\/strong> and can be precisely defined.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">The budget can be reasonably estimated from credible estimates\/previous successful selections.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">The budget is <strong>sufficient<\/strong> for the consultant to perform the assignment.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\">Selection is by either (i) a competitive process based <strong>only on quality<\/strong> [Rule 192(i)] \u2014 the highest technical score within budget wins; or (ii) <strong>empanelment<\/strong> for repetitive assignments, then choosing on public-interest considerations (timeliness, practicability, prior assignments) with a fixed budget per assignment.<\/p>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz3\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 3 Quiz \u2014 contract types & selection methods<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 3. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage3\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore3\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext3\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c3-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 3 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Preferred contract<\/td><td><strong>Lump Sum<\/strong> \u2014 no price adjustment; pay against acceptance certificate<\/td><\/tr>\r\n <tr><td>Time-Based safeguard<\/td><td>Include an <strong>upper limit<\/strong> of total payment; CA reviews extension<\/td><\/tr>\r\n <tr><td>Percentage contract pick<\/td><td>Lowest <strong>percentage<\/strong> wins; discouraged for design (no economy incentive)<\/td><\/tr>\r\n <tr><td>Indefinite Delivery<\/td><td>Like a <strong>Rate Contract<\/strong>; selected on <strong>unit rate<\/strong>; set a max value<\/td><\/tr>\r\n <tr><td>Shortlist size<\/td><td><strong>Not fewer than 3, not more than 8<\/strong> firms<\/td><\/tr>\r\n <tr><td>LCS (Rule 193)<\/td><td><strong>Default<\/strong> method; benchmark <strong>~75\/100<\/strong>; L-1 wins on price alone<\/td><\/tr>\r\n <tr><td>QCBS (Rule 192)<\/td><td>Benchmark <strong>70\u201380\/100<\/strong>; typical weight <strong>70:30<\/strong>, technical <strong>\u2264 80%<\/strong><\/td><\/tr>\r\n <tr><td>QCBS Table 3<\/td><td>Complex <strong>80\/20<\/strong>; moderate <strong>75\u201365\/35\u201325<\/strong>; routine <strong>60\u201350\/40\u201350<\/strong><\/td><\/tr>\r\n <tr><td>SSS (Rule 194)<\/td><td>Justification + CA approval; report <strong>quarterly<\/strong>; audit \u2265 <strong>10%<\/strong><\/td><\/tr>\r\n <tr><td>FBS<\/td><td>Budget fixed in tender; <strong>simple\/repetitive<\/strong> work; highest tech score within budget<\/td><\/tr>\r\n <tr><td>Single bid<\/td><td>Valid if well-advertised, non-restrictive criteria & reasonable price<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch4\" data-chapter=\"4\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c4-tor\">\r\n <span class=\"chapter-badge\">CH 4 \u00b7 PREPARING<\/span>\r\n <h2>Preparing for Procurement of Consultancy Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Terms of Reference (ToR) \u2014 Rule 185, GFR<\/div>\r\n <div class=\"def-text\">\r\n The ToR is the consultancy equivalent of the <strong>Description, Quantity & Technical Specification<\/strong> used for goods (4.1.1). It states the purpose\/objectives, scope of work, tasks, the respective responsibilities of the Procuring Entity and consultant, expected results and deliverables. It must be <strong>comprehensive and unambiguous<\/strong> \u2014 yet <strong>not so detailed\/inflexible<\/strong> that competing consultants cannot propose their own methodology and staffing.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Describe activities, not methodology<\/div>\r\n <p>In consultancy, the Detailed Scope of Work should describe <strong>only the activities, not the approach or methodology<\/strong> (which is the consultant's task \u2014 suggestions may still be offered). Tasks are sequenced over a timeline, best shown as a <strong>bar\/Gantt chart<\/strong>. Such ToRs are <strong>activity-based<\/strong> (a single description of what the team as a whole will provide) rather than <strong>position-based<\/strong> \u2014 preferred where the team is small and flexibility is needed. <strong>Key professionals are usually named<\/strong>, and their credentials carry weightage in technical evaluation.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-reports\">\r\n <span class=\"section-badge purple\">\u00a7 4.1.3<\/span>\r\n <h3>Deliverables & the four reports<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Reporting requirements (format, frequency, content, copies, language)<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">INCEPT<\/span><span class=\"nl-text\"><strong>Inception Report<\/strong> \u2014 submitted about <strong>six weeks<\/strong> after commencement; flags ToR inconsistencies, staffing problems or deficiencies in the Entity's assistance, giving confidence the assignment can proceed as planned.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PROG<\/span><span class=\"nl-text\"><strong>Progress Reports<\/strong> \u2014 keep the Entity informed; <strong>monthly or bimonthly<\/strong> (feasibility\/design studies: <strong>two-month<\/strong> intervals; technical assistance & construction supervision: <strong>monthly<\/strong>). Time-stamped photographs are encouraged.<\/span><\/li>\r\n <li><span class=\"nl-tag\">INTERIM<\/span><span class=\"nl-text\"><strong>Interim Reports<\/strong> \u2014 for phased assignments; the Entity should take <strong>no more than 15 days<\/strong> to review & approve a draft interim report.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FINAL<\/span><span class=\"nl-text\"><strong>Final Report<\/strong> \u2014 at completion; consultants alone are responsible for findings; if they reject the Entity's comments, the reasons are noted in the report.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">The ToR template (Annexure 4) also covers<\/div>\r\n <p>Background & project context; Purpose & Service Outcomes statement; detailed scope with schedule; expected key professionals & expertise; capacity-building \/ transfer of knowledge; deliverables; background material to be provided; <strong>facilities<\/strong> (conveyance, office space, secretarial assistance \u2014 a real-cost reality check is essential); institutional arrangements; and the <strong>Consultancy Monitoring Committee (CMC)<\/strong> review procedure after award.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-cost\">\r\n <span class=\"section-badge amber\">\u00a7 4.2<\/span>\r\n <h3>Estimating costs, setting the budget & seeking approval<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">Category (a)<\/div>\r\n <div class=\"cat-title\">Fee \/ Remuneration<\/div>\r\n <p>According to the contract type. Staff remuneration rates include <strong>basic salary, social charges, overheads, fees\/profit and allowances<\/strong>; estimate provides for forecast inflation over the assignment.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">Category (b)<\/div>\r\n <div class=\"cat-title\">Reimbursable Costs<\/div>\r\n <p>Logistics (city\/national\/international travel & stay), physical inputs (vehicles, lab equipment), support services, contingencies & profit, taxes & duties.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <p>Costs are normally estimated using <strong>unit rates \u00d7 quantities<\/strong> (some items \u2014 contingencies, support services \u2014 on a lump-sum or percentage basis). A <strong>mismatch between cost estimate and ToR<\/strong> misleads consultants on the desired scope\/depth and causes problems at negotiation or implementation.<\/p>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-final\">\r\n <span class=\"section-badge teal\">\u00a7 4.3<\/span>\r\n <h3>Finalising & approving the ToR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Budget must match the ToR<\/div>\r\n <p>The scope in the ToR must be <strong>compatible with the available budget<\/strong> \u2014 confirm all required tasks are included and adequate budget allocated (a series of iterations may be needed). <strong>CA approval<\/strong> of the ToR should be taken before proceeding; after administrative approval, budget provision is made (or confirmed for the Revised Estimate stage). <strong>Procurement may be initiated only after such budgetary provisions\/confirmations.<\/strong><\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-plan\">\r\n <span class=\"section-badge slate\">\u00a7 4.4<\/span>\r\n <h3>Developing a procurement plan<\/h3>\r\n <\/div>\r\n\r\n <p>A consultancy is often part of a larger project with other components. The Entity develops a <strong>synchronised procurement plan<\/strong> sequencing all components, choosing the selection method & contract type, and timing consultant selection to meet implementation needs \u2014 e.g. a construction-supervision consultant must be <strong>mobilised before the award of the construction contract<\/strong>.<\/p>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-eproc\">\r\n <span class=\"section-badge red\">\u00a7 4.5<\/span>\r\n <h3>e-Procurement \u2014 Rule 160, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Mandatory, with limited exemptions<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">MAND<\/span><span class=\"nl-text\">It is <strong>mandatory<\/strong> for Ministries\/Departments to receive <strong>all bids through e-procurement portals<\/strong> for all procurements.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NIC<\/span><span class=\"nl-text\">Low-volume Departments may use the <strong>NIC<\/strong> e-procurement solution; others may use NIC or another service provider via due process.<\/span><\/li>\r\n <li><span class=\"nl-tag\">GeM<\/span><span class=\"nl-text\">These instructions do <strong>not<\/strong> apply to procurements made through <strong>GeM<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SECURITY<\/span><span class=\"nl-text\">Cases of <strong>national security \/ strategic confidentiality<\/strong> may be exempted with the <strong>concerned Secretary's approval and the Financial Adviser's concurrence<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ABROAD<\/span><span class=\"nl-text\">For tenders floated by <strong>Indian Missions abroad<\/strong>, the Competent Authority deciding the tender may grant exemption.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz4\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 4 Quiz \u2014 ToR, costs & e-procurement<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 4. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage4\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore4\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext4\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c4-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 4 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>ToR analogue<\/td><td>Description, Quantity & Technical Spec for goods (<strong>Rule 185<\/strong>)<\/td><\/tr>\r\n <tr><td>ToR describes<\/td><td><strong>Activities, not methodology<\/strong> (consultant's task)<\/td><\/tr>\r\n <tr><td>Inception Report<\/td><td>~ <strong>6 weeks<\/strong> after commencement<\/td><\/tr>\r\n <tr><td>Progress Reports<\/td><td>Monthly\/bimonthly; feasibility <strong>2-month<\/strong>, construction <strong>monthly<\/strong><\/td><\/tr>\r\n <tr><td>Interim report review<\/td><td>Entity takes <strong>\u2264 15 days<\/strong> to approve a draft<\/td><\/tr>\r\n <tr><td>Cost categories<\/td><td>(a) Fee\/remuneration \u00b7 (b) Reimbursable costs<\/td><\/tr>\r\n <tr><td>Review committee after award<\/td><td><strong>Consultancy Monitoring Committee (CMC)<\/strong><\/td><\/tr>\r\n <tr><td>ToR approval<\/td><td><strong>CA approval<\/strong> + budget provision before initiating procurement<\/td><\/tr>\r\n <tr><td>e-Procurement<\/td><td><strong>Mandatory<\/strong> (Rule 160); not for GeM<\/td><\/tr>\r\n <tr><td>e-Proc exemption<\/td><td>National security \u2014 <strong>Secretary approval + FA concurrence<\/strong><\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch5\" data-chapter=\"5\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c5-eoi\">\r\n <span class=\"chapter-badge\">CH 5 \u00b7 SHORTLISTING<\/span>\r\n <h2>Shortlisting Stage in Procurement of Consultancy Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Why shortlist \u2014 the two-stage logic<\/div>\r\n <div class=\"def-text\">\r\n Because consultancy quality is non-measurable, it is too costly to invite and evaluate proposals from everyone. So selection rests on <strong>limited proposals from a short list of qualified firms<\/strong>. <strong>Stage 1:<\/strong> qualified firms are shortlisted transparently. <strong>Stage 2:<\/strong> an RfP (technical + financial) is invited from the shortlist. Avoid unreasonable qualification criteria that restrict participation.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Other (non-consultancy) services \u2014 single stage<\/div>\r\n <p>Done by a simpler, <strong>single-stage RfP<\/strong> process (like Goods\/Works). <strong>Above \u20b910 lakh<\/strong> \u2192 normally an <strong>advertised RfP<\/strong>; <strong>below \u20b910 lakh<\/strong> \u2192 RfP issued to a selected shortlist of likely providers.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-thresh\">\r\n <span class=\"section-badge teal\">\u00a7 5.1.3<\/span>\r\n <h3>Advertised EoI & the shortlisting thresholds<\/h3>\r\n <\/div>\r\n\r\n <div class=\"info-row\">\r\n <div class=\"info-card t-teal\"><div class=\"ic-big\">> \u20b950 lakh<\/div><div class=\"ic-cap\"><strong>Rule 183(ii):<\/strong> openly advertised competitive shortlisting \u2014 <strong>Expression of Interest (EoI)<\/strong> on CPPP & GeM.<\/div><\/div>\r\n <div class=\"info-card\"><div class=\"ic-big\">≤ \u20b950 lakh<\/div><div class=\"ic-cap\"><strong>Rule 183(i):<\/strong> no formal published EoI \u2014 akin to a Limited Tender Enquiry; long-list of <strong>not less than three<\/strong>.<\/div><\/div>\r\n <div class=\"info-card t-amber\"><div class=\"ic-big\">3 \u2013 8<\/div><div class=\"ic-cap\">Short list: minimum <strong>three (Rule 184)<\/strong>, generally not more than <strong>eight<\/strong>.<\/div><\/div>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">The Request for EoI (REoI)<\/div>\r\n <p>Advertised on <strong>CPPP (eprocure.gov.in)<\/strong> and <strong>GeM<\/strong> (and the Entity's own website). A complete <strong>ToR must be ready<\/strong> before requesting EoI, but the <strong>REoI itself shall not include the assignment ToR<\/strong>. The REoI asks for: core business & years in business; qualifications in the field; technical\/managerial organisation; and number of key staff. Consultants must <strong>not<\/strong> be asked about their approach or to submit CVs (those belong in the RfP); brevity is stressed. Where Indian consultants may be unavailable, EoI may use the <strong>Global Tender Enquiry (GTE)<\/strong> route.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-gte\">\r\n <span class=\"section-badge red\">\u00a7 5.1.4<\/span>\r\n <h3>Global Tender Enquiry (GTE) \u2014 Rule 161, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">No GTE up to \u20b9200 crore<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">BAR<\/span><span class=\"nl-text\">No GTE shall be invited <strong>up to \u20b9200 crore<\/strong> (or such limit as DoE prescribes). Exceptional cases need detailed justification & <strong>prior approval of the competent authority<\/strong> specified by DoE.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WHO<\/span><span class=\"nl-text\">The proposal is submitted by the <strong>Administrative Ministry<\/strong> with the <strong>Financial Adviser's concurrence<\/strong> and the <strong>Secretary's approval<\/strong>; proposals from individual offices\/autonomous bodies\/CPSUs are <strong>not entertained<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DOM<\/span><span class=\"nl-text\">First a <strong>domestic open tender<\/strong> (after 15.05.2020) must be floated to identify domestic providers; the <strong>3\/5-year procurement plan<\/strong> (PPP-MII) must be published.<\/span><\/li>\r\n <li><span class=\"nl-tag\">RESEARCH<\/span><span class=\"nl-text\">For <strong>specialised research equipment<\/strong> (up to \u20b9200 crore) for Educational\/Research Institutes, the <strong>Secretary<\/strong> of the Ministry is the competent authority, subject to non-availability certificates and use of the <strong>I-STEM portal<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-below\">\r\n <span class=\"section-badge purple\">\u00a7 5.1.9\u20135.1.10<\/span>\r\n <h3>Below \u20b925 lakh & empanelment<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Limited-tender-style shortlisting<\/div>\r\n <p>A <strong>long list<\/strong> is built from enquiries to other Ministries\/Organisations, Chambers of Commerce, consultancy associations, etc., then moderated to prima-facie eligible firms \u2014 <strong>not less than three<\/strong> (if fewer are available, proceed with fewer but never below three, with <strong>CA approval<\/strong>). Entities doing frequent consultancy procurement may maintain a <strong>Panel of qualified consultants<\/strong> (like vendor registration for goods). A formal EoI may still be advertised below \u20b925 lakh, with CA approval, if complexity justifies. Empanelled contractors' performance is <strong>reviewed periodically<\/strong>; the list is updated and members upgraded\/downgraded\/de-listed.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-shortlist\">\r\n <span class=\"section-badge amber\">\u00a7 5.2<\/span>\r\n <h3>The short list & qualification weightages<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:62%\"><col style=\"width:38%\"><\/colgroup>\r\n <thead><tr><th>Qualification criterion (Table 2)<\/th><th>Weightage<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Past experience \/ track record of the consultant<\/td><td class=\"code-cell\">60%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">General profile of qualification, experience & number of key staff (not individual CVs)<\/td><td class=\"code-cell\">25%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Overall financial strength (turnover, profitability, cash flow)<\/td><td class=\"code-cell\">15%<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Scoring & the turnover caution<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">75%<\/span><span class=\"nl-text\">Shortlist all consultants who secure the minimum required marks (<strong>normally 75%<\/strong>), specified in the EoI. A simplified <strong>fail\/pass benchmark<\/strong> may be used instead (e.g. \u2265 2 similar projects; key staff \u2265 7 years & a Master's; turnover \u2265 \u20b910 crore).<\/span><\/li>\r\n <li><span class=\"nl-tag\">WHY<\/span><span class=\"nl-text\">Scoring is not merely for disqualification but to establish relative strengths and arrive at a robust short list.<\/span><\/li>\r\n <li><span class=\"nl-tag\">TURNOVER<\/span><span class=\"nl-text\">Keeping minimum qualifying turnover at <strong>5\u201310 times the estimated cost<\/strong> appears <strong>high<\/strong> \u2014 it reduces competition; criteria should be reasonable and such high turnover kept only if adequately justified.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CONCURRENT<\/span><span class=\"nl-text\">If a firm is considered for <strong>concurrent assignments<\/strong>, the Entity assesses its overall capacity before placing it on more than one short list \u2014 pre-declared in the EoI.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-risks\">\r\n <span class=\"section-badge slate\">\u00a7 5.3<\/span>\r\n <h3>Shortlisting \u2014 risks & mitigation<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:42%\"><col style=\"width:58%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Conflict-of-interest situations not reported\/declared (by consultants or evaluation-committee members).<\/td><td>Signed <strong>declarations<\/strong> in specified formats \u2014 at the EoI bid stage, in the technical proposal, and by CEC members before evaluation.<\/td><\/tr>\r\n <tr><td><strong>Qualifications leasing<\/strong> \u2014 weak local bidders show association with well-qualified (foreign\/local) firms only to borrow their credentials, then contribute little at execution.<\/td><td>From the EoI stage, clearly identify the qualified applicant and put the partner's <strong>guaranteed contribution on record \/ in the contract<\/strong>.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz5\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 5 Quiz \u2014 EoI, thresholds & the short list<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 5. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage5\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore5\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext5\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c5-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 5 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Advertised EoI threshold<\/td><td>Procurement <strong>above \u20b925 lakh<\/strong> \u2192 open EoI on CPPP & GeM (Rule 183(ii))<\/td><\/tr>\r\n <tr><td>Below \u20b925 lakh<\/td><td>No formal EoI \u2014 LTE-style long-list of <strong>\u2265 3<\/strong> (Rule 183(i))<\/td><\/tr>\r\n <tr><td>Other services RfP<\/td><td><strong>> \u20b910 lakh<\/strong> advertised; <strong>< \u20b910 lakh<\/strong> selected shortlist<\/td><\/tr>\r\n <tr><td>Short list size<\/td><td>Minimum <strong>3 (Rule 184)<\/strong>, generally <strong>\u2264 8<\/strong><\/td><\/tr>\r\n <tr><td>REoI does NOT include<\/td><td>The assignment <strong>ToR<\/strong>, approach, or CVs<\/td><\/tr>\r\n <tr><td>GTE bar<\/td><td><strong>No GTE up to \u20b9200 crore<\/strong> without competent-authority approval<\/td><\/tr>\r\n <tr><td>GTE approval route<\/td><td>Admin Ministry + <strong>FA concurrence + Secretary approval<\/strong><\/td><\/tr>\r\n <tr><td>Qualification weights<\/td><td>Experience <strong>60%<\/strong> \u00b7 key staff <strong>25%<\/strong> \u00b7 finance <strong>15%<\/strong><\/td><\/tr>\r\n <tr><td>Shortlist cut-off<\/td><td>Normally <strong>75%<\/strong> of marks<\/td><\/tr>\r\n <tr><td>Turnover caution<\/td><td><strong>5\u201310\u00d7<\/strong> estimated cost is high \u2014 keep reasonable<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch6\" data-chapter=\"6\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c6-steps\">\r\n <span class=\"chapter-badge\">CH 6 \u00b7 COMPETITIVE SELECTION<\/span>\r\n <h2>Selection of Consultants by Competitive Process<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">The evaluation process (6.1)<\/div>\r\n <div class=\"def-text\">\r\n Nine steps: (i) prepare & issue the <strong>RfP<\/strong>; (ii) pre-proposal meeting; (iii) receipt of proposals; (iv) technical evaluation (quality); (v) public opening of financial proposals; (vi) financial evaluation; (vii) selection of the winning proposal; (viii) negotiations, if required; (ix) award of contract.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-rfp\">\r\n <span class=\"section-badge blue\">\u00a7 6.2<\/span>\r\n <h3>Request for Proposals (RfP)<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Who receives it & what it contains<\/div>\r\n <p>For consultancy, the RfP is sent <strong>only to the shortlisted consultants<\/strong>; for other (non-consultancy) services there is no EoI, so the RfP is <strong>advertised<\/strong> \u2014 except where value is <strong>under \u20b910 lakh<\/strong>. Sections: Letter of Invitation; Information to Consultants (ITC) + data sheet; ToR; list of key experts; firm\/expert qualification requirements; evaluation criteria & selection procedure; standard technical & financial formats; proposed form of contract (GCC + Special Conditions); mid-term & final-review procedure. Use the standard RfP with <strong>minimal changes<\/strong>.<\/p>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">6.2.2<\/div>\r\n <div class=\"cat-title\">Simplified Technical Proposal (STP)<\/div>\r\n <p>For <strong>LCS<\/strong>, where technical scores aren't weighted\/added, fail-pass benchmarks suffice and an <strong>STP<\/strong> (not a Full Technical Proposal) is called for. Used when the assignment: (i) is <strong>unlikely to have downstream impact<\/strong>; (ii) is <strong>routine<\/strong> with a well-defined ToR; (iii) needs no detailed evaluation of experience (auditors, accountants, consulting engineers).<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">6.2.4<\/div>\r\n <div class=\"cat-title\">Instructions to Consultants (ITC)<\/div>\r\n <p>Two parts \u2014 <strong>standard<\/strong> info + <strong>assignment-specific<\/strong> (via data sheet). Brings transparency on evaluation criteria, weights & minimum passing score. <strong>Shall not indicate the budget<\/strong> (except in FBS) but indicates expected key-staff input. Proposal validity <strong>normally 60 days<\/strong>.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-provisions\">\r\n <span class=\"section-badge amber\">\u00a7 6.2.6<\/span>\r\n <h3>Important provisions \u2014 currency, PVC, advances & securities<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Currency & Price Adjustment (PVC)<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">INR<\/span><span class=\"nl-text\">Contracts are normally in <strong>Indian Rupees<\/strong>; if another currency is allowed, the conversion date (normally the <strong>date of opening the Technical Bid<\/strong>) is fixed in the RfP.<\/span><\/li>\r\n <li><span class=\"nl-tag\">18M<\/span><span class=\"nl-text\">If a <strong>time-based<\/strong> or <strong>indefinite-delivery<\/strong> contract is expected to exceed <strong>18 months<\/strong>, include a price-adjustment provision based on the <strong>Consumer Price Index<\/strong>. <strong>Lump-sum<\/strong> contracts are generally <strong>not<\/strong> subject to price adjustment (except small multi-year contracts, e.g. auditors).<\/span><\/li>\r\n <li><span class=\"nl-tag\">PVC<\/span><span class=\"nl-text\">PVC elements: a stated <strong>base date<\/strong>; a <strong>minimum % threshold<\/strong> below which no adjustment applies; and a <strong>ceiling<\/strong> on variation. Provide your own formula to keep bids comparable.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Advance payments & their limits<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">30%<\/span><span class=\"nl-text\">Up to <strong>30%<\/strong> of contract value to <strong>private firms<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">40%<\/span><span class=\"nl-text\">Up to <strong>40%<\/strong> to a <strong>State\/Central Government agency or PSU<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">6M<\/span><span class=\"nl-text\">For a <strong>maintenance contract<\/strong>, not exceeding the amount payable for <strong>six months<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SAFE<\/span><span class=\"nl-text\">Ceilings are relaxable by the Ministry with <strong>FA concurrence<\/strong>; a <strong>bank guarantee<\/strong> safeguard is taken. Advance for <strong>pre-paid electricity meters<\/strong> to authorised DISCOMs needs <strong>no BG<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:22%\"><col style=\"width:39%\"><col style=\"width:39%\"><\/colgroup>\r\n <thead><tr><th>Feature<\/th><th>Bid Security \u2014 Rule 170<\/th><th>Performance Security \u2014 Rule 171<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">When<\/td><td>Not usual in consultancy; optional for time-critical cases.<\/td><td>From the successful bidder, to ensure due performance.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Amount<\/td><td><strong>2%\u20135%<\/strong> of estimated value.<\/td><td><strong>5%\u201310%<\/strong> of contract value (<strong>reduced to 3% till 31.03.2023<\/strong>).<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Validity<\/td><td><strong>45 days<\/strong> beyond final bid validity.<\/td><td><strong>60 days<\/strong> beyond completion of all obligations.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Timing<\/td><td>Released to unsuccessful bidders <strong>within 30 days<\/strong> of award (or of the first-stage result).<\/td><td>Furnished within <strong>14 days<\/strong> of award notification.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Exemptions<\/td><td><strong>MSEs & Startups<\/strong> exempt; alternative is a <strong>Bid Securing Declaration<\/strong>.<\/td><td>Not needed for contract value <strong>up to \u20b91 lakh<\/strong>; GTE \u2192 <strong>URDG 758<\/strong>.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Other RfP\/contract clauses<\/div>\r\n <p>Standard Form of Contract is preferred; <strong>GCC should not be altered<\/strong> \u2014 project-specific changes go through <strong>Special Conditions<\/strong>. Also: <strong>professional liability<\/strong> (no limitation for gross negligence\/wilful misconduct; never below a stated multiple of contract value); <strong>staff substitution<\/strong> only with equally-qualified replacements approved by the Entity; applicable law is Indian law; training\/transfer-of-knowledge cost stated explicitly. A <strong>pre-bid conference<\/strong> may be held for large-value tenders.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-pre\">\r\n <span class=\"section-badge purple\">\u00a7 6.3\u20136.4<\/span>\r\n <h3>Pre-proposal meeting & receipt of proposals<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Timelines<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">15\u201330<\/span><span class=\"nl-text\">A pre-proposal meeting is normally held <strong>15\u201330 days<\/strong> after RfP issue. Significant changes go out as a formal <strong>corrigendum<\/strong>, leaving bidders <strong>not less than 15 days<\/strong> to respond.<\/span><\/li>\r\n <li><span class=\"nl-tag\">4w\u20133m<\/span><span class=\"nl-text\">Time to prepare proposals: normally <strong>not less than 4 weeks, not more than 3 months<\/strong>; with international participation, <strong>not less than 8 weeks<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SEAL<\/span><span class=\"nl-text\">Technical & financial proposals are submitted <strong>together<\/strong>, in <strong>separate sealed envelopes inside an outer envelope<\/strong>. Technical bids open immediately; financial bids open <strong>only for technically qualified firms<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">LATE<\/span><span class=\"nl-text\"><strong>Late bids<\/strong> are not considered and are <strong>returned unopened<\/strong> (Rules 187 & 188).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-cec\">\r\n <span class=\"section-badge red\">\u00a7 6.5<\/span>\r\n <h3>Consultancy Evaluation Committee (CEC) \u2014 Rule 189<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Constitution & conduct<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">>\u20b910L<\/span><span class=\"nl-text\">Constituted for cases with financial implication <strong>over \u20b910 lakh<\/strong>; <strong>normally three members<\/strong> including the <strong>Financial Adviser\/representative<\/strong> and a <strong>user representative<\/strong> (who acts as <strong>convenor<\/strong>).<\/span><\/li>\r\n <li><span class=\"nl-tag\">RULE<\/span><span class=\"nl-text\"><strong>No member may report directly to another<\/strong> CEC member. The CEC handles all stages \u2014 EoI, shortlist, ToR, RfP, technical & financial evaluation, negotiation, selection. No separate technical committee is needed.<\/span><\/li>\r\n <li><span class=\"nl-tag\">GRADE<\/span><span class=\"nl-text\">A grading system of <strong>3\u20134 grades<\/strong> is defined <strong>before<\/strong> proposals are opened, to prevent bias.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NOCOMM<\/span><span class=\"nl-text\">Members must have <strong>no communication with shortlisted firms<\/strong> from appointment until award.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DISSENT<\/span><span class=\"nl-text\">Differences resolved by discussion; persistent dissent is <strong>recorded<\/strong>, the <strong>majority view<\/strong> prevails, and the <strong>CA may overrule<\/strong> with recorded reasons.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Rating scale (for unquantifiable criteria)<\/div>\r\n <table class=\"compare-table\" style=\"margin:8px 0 0;\">\r\n <colgroup><col style=\"width:14%\"><col style=\"width:56%\"><col style=\"width:30%\"><\/colgroup>\r\n <thead><tr><th>Grade<\/th><th>Assessment<\/th><th>Marks<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">A<\/td><td>Very Good<\/td><td class=\"code-cell\">Full marks<\/td><\/tr>\r\n <tr><td class=\"label-cell\">B<\/td><td>Good<\/td><td class=\"code-cell\">80%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">C<\/td><td>Satisfactory<\/td><td class=\"code-cell\">60%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">D<\/td><td>Unsatisfactory<\/td><td class=\"code-cell\">30%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">E<\/td><td>Not Relevant<\/td><td class=\"code-cell\">10%<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-resp\">\r\n <span class=\"section-badge teal\">\u00a7 6.6\u20136.7<\/span>\r\n <h3>Responsiveness & technical evaluation<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">First stage \u2014 responsiveness<\/div>\r\n <p>Summarily rejected as <strong>non-responsive<\/strong>: proposals <strong>without bid security, unsigned, incomplete<\/strong> (required formats not submitted), not fully responding to the ToR, or with <strong>shorter validity<\/strong> than prescribed. A technical proposal containing <strong>material financial information<\/strong> is also rejected.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Second stage \u2014 quality (absolute, not comparative)<\/div>\r\n <p>Each proposal is judged on its own merits and given an <strong>absolute<\/strong> grade against predefined criteria \u2014 total max technical score <strong>100<\/strong>. Criteria: (a) relevant experience; (b) methodology; (c) qualifications of key staff; (d) transfer of knowledge. Minimum qualifying mark <strong>normally 75<\/strong>. The technical evaluation report is <strong>confidential<\/strong> and needs CA approval.<\/p>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:64%\"><col style=\"width:36%\"><\/colgroup>\r\n <thead><tr><th>Rated criterion (Table 3)<\/th><th>Range of %<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Consultancy firm's specific experience<\/td><td class=\"code-cell\">5\u201310%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Methodology<\/td><td class=\"code-cell\">20\u201350%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Qualification & relevant experience of key staff<\/td><td class=\"code-cell\">30\u201360%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Transfer of knowledge<\/td><td class=\"code-cell\">0\u201310%<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-cost\">\r\n <span class=\"section-badge gold\">\u00a7 6.8<\/span>\r\n <h3>Evaluation of cost \u2014 Rule 190<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Opening & scoring the financial proposals<\/div>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">NOTIFY<\/span><span class=\"nl-text\">Non-qualified\/non-responsive consultants are notified; their <strong>financial proposals are returned unopened<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">3W<\/span><span class=\"nl-text\">In QCBS, financial opening is <strong>not later than three weeks<\/strong> after notification, conducted <strong>publicly<\/strong>; names, quality scores & prices are read aloud.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CORR<\/span><span class=\"nl-text\"><strong>Time-based<\/strong> proposals: arithmetical errors are corrected. <strong>Lump-sum<\/strong>: <strong>no correction<\/strong> \u2014 all prices deemed included.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SCORE<\/span><span class=\"nl-text\">In QCBS the <strong>lowest price gets 100<\/strong>; others score inversely proportional to price.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FX<\/span><span class=\"nl-text\">Costs convert to INR using the <strong>SBI BC selling rate<\/strong> on the <strong>date of opening the technical bids<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ALB<\/span><span class=\"nl-text\"><strong>Abnormally Low Bid:<\/strong> seek written price analysis; reject if the bidder fails to demonstrate capability \u2014 but <strong>no fixed normative %<\/strong> is prescribed.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-winner\">\r\n <span class=\"section-badge blue\">\u00a7 6.9<\/span>\r\n <h3>Selecting the winning consultant<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">LCS, QCBS & the combined-score formula<\/div>\r\n <p><strong>LCS:<\/strong> proposals ranked by total cost; the least-cost (<strong>L-1<\/strong>) is recommended for award. <strong>QCBS (Rule 192):<\/strong> technical 70% \/ cost 30% (or 60:40, 50:50, but technical <strong>not > 80%<\/strong>). Combined evaluated score:<\/p>\r\n <div class=\"highlight-box\">\r\n <div class=\"hl-label\">Evaluated Bid Score<\/div>\r\n <div class=\"hl-text\"><strong>B = (C<sub>low<\/sub> \/ C) \u00b7 X + (T \/ T<sub>high<\/sub>) \u00b7 (1 \u2212 X)<\/strong> \u2014 where C = evaluated price, C<sub>low<\/sub> = lowest price, T = technical score, T<sub>high<\/sub> = best technical score, X = price weight. Highest combined score = <strong>H-1<\/strong>; a tie is broken in favour of the <strong>highest technical score<\/strong>.<\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Worked example (70:30, qualifying 75)<\/div>\r\n <p>Technical: A 75, B 80, C 90 \u2192 normalised (T\/T<sub>high<\/sub>) 83 \/ 89 \/ 100. Prices: A \u20b9120, B \u20b9100, C \u20b9110 \u2192 financial (C<sub>low<\/sub>\/C) 83 \/ 100 \/ 91. Combined: A = 83\u00d70.30 + 83\u00d70.70 = <strong>83 (H-3)<\/strong>; B = 100\u00d70.30 + 89\u00d70.70 = <strong>92.3 (H-2)<\/strong>; C = 91\u00d70.30 + 100\u00d70.70 = <strong>97.3 (H-1)<\/strong>. <strong>Proposal C wins<\/strong> at \u20b9110. (SSS: the single source is called for negotiation after its financial proposal is opened.)<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-award\">\r\n <span class=\"section-badge red\">\u00a7 6.10\u20136.13<\/span>\r\n <h3>Negotiations, award & risks<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Negotiation & award rules<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">NEG<\/span><span class=\"nl-text\">Negotiations are <strong>not essential<\/strong>; they freeze the ToR\/methodology in the \"Description of Services\" but must <strong>not substantially alter or dilute<\/strong> the ToR.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FIN<\/span><span class=\"nl-text\"><strong>Financial<\/strong> negotiation only if a scope change has a financial bearing or quoted costs are unreasonable \u2014 and in <strong>no case an increase above the quoted price<\/strong>. If negotiation fails \u2192 <strong>cancel & re-invite<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WEB<\/span><span class=\"nl-text\">The winning bidder's name & cost are <strong>posted on the website<\/strong> after award. Evaluation details stay <strong>confidential<\/strong> until award (overall technical scores may be shared).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:42%\"><col style=\"width:58%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>A JV wins on the lead partner's qualifications, but proposes <strong>no key expert\/team leader from that firm<\/strong>.<\/td><td>RfP should require the team leader to have worked <strong>2\u20133 years<\/strong> with the main qualifying firm; non-compliance \u2192 non-responsive.<\/td><\/tr>\r\n <tr><td>Request to <strong>substitute key experts at negotiation<\/strong>.<\/td><td>Examined very closely; agreed only if the RfP permits and the process was unreasonably delayed.<\/td><\/tr>\r\n <tr><td><strong>Unsigned CVs<\/strong> in the technical proposal.<\/td><td>Evaluate without the unsigned CVs; never allow substitution at negotiation; if most CVs are unsigned \u2192 reject as non-responsive.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz6\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 6 Quiz \u2014 RfP, CEC, evaluation & award<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 6. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage6\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore6\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext6\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c6-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 6 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>RfP recipients<\/td><td>Shortlisted firms (consultancy); advertised for other services unless <strong>< \u20b910 lakh<\/strong><\/td><\/tr>\r\n <tr><td>Proposal validity<\/td><td>Normally <strong>60 days<\/strong>; ITC shall not show budget (except FBS)<\/td><\/tr>\r\n <tr><td>Price adjustment<\/td><td>Time-based\/indefinite contracts <strong>> 18 months<\/strong> \u2192 PVC on CPI<\/td><\/tr>\r\n <tr><td>Advance limits<\/td><td><strong>30%<\/strong> private \u00b7 <strong>40%<\/strong> Govt\/PSU \u00b7 <strong>6 months<\/strong> for maintenance<\/td><\/tr>\r\n <tr><td>Bid security (Rule 170)<\/td><td><strong>2\u20135%<\/strong>; valid <strong>45 days<\/strong> beyond bid validity; MSE\/startup exempt<\/td><\/tr>\r\n <tr><td>Performance security (Rule 171)<\/td><td><strong>5\u201310%<\/strong> (3% till 31.03.2023); within <strong>14 days<\/strong>; nil up to \u20b91 lakh<\/td><\/tr>\r\n <tr><td>Proposal time<\/td><td><strong>4 weeks\u20133 months<\/strong>; international <strong>\u2265 8 weeks<\/strong><\/td><\/tr>\r\n <tr><td>CEC (Rule 189)<\/td><td>For cases <strong>> \u20b910 lakh<\/strong>; <strong>3 members<\/strong>; user rep = convenor<\/td><\/tr>\r\n <tr><td>Rating scale<\/td><td>A full \u00b7 B 80% \u00b7 C 60% \u00b7 D 30% \u00b7 E 10%<\/td><\/tr>\r\n <tr><td>Technical eval<\/td><td><strong>Absolute<\/strong> grade \/100; qualifying normally <strong>75<\/strong><\/td><\/tr>\r\n <tr><td>FX conversion<\/td><td><strong>SBI BC selling rate<\/strong> on date of opening technical bids<\/td><\/tr>\r\n <tr><td>QCBS (Rule 192)<\/td><td>70:30 (\u2264 80% technical); tie \u2192 highest technical = H-1<\/td><\/tr>\r\n <tr><td>Financial negotiation<\/td><td>Never above the quoted price; failure \u2192 cancel & re-invite<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch7\" data-chapter=\"7\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c7-sss\">\r\n <span class=\"chapter-badge\">CH 7 \u00b7 SPECIAL ENGAGEMENTS<\/span>\r\n <h2>Special Types of Engagements<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">When the standard competitive route is varied<\/div>\r\n <div class=\"def-text\">\r\n This chapter sets the method for special cases: <strong>Single Source Selection<\/strong>, <strong>individual<\/strong> consultants, <strong>specialised agencies & NGOs<\/strong>, <strong>procurement & inspection agents<\/strong>, <strong>financial advisors<\/strong>, <strong>auditors<\/strong>, and public <strong>logo\/symbol design competitions<\/strong>.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">7.1 \u00b7 Single Source Selection (SSS)<\/div>\r\n <p>Direct negotiation lacks the benefits of competition and transparency, so <strong>powers must be severely restricted<\/strong> \u2014 used only in exceptional, inescapable circumstances. Reasons & the choice of firm are <strong>recorded and approved by the CA<\/strong> (per DPFR\/SoPP) before single tendering. For <strong>downstream continuity<\/strong>, the initial RfP should outline the prospect; but if the initial assignment was <strong>not competitive<\/strong> or the downstream work is <strong>substantially larger<\/strong>, a competitive process is followed (the initial firm not excluded). Per CVC guidelines, the CFA reports <strong>all selections by nomination every month<\/strong> to the Secretary\/Head of Department.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-individual\">\r\n <span class=\"section-badge teal\">\u00a7 7.2<\/span>\r\n <h3>Selection of individual consultants<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">When teams aren't needed<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">WHEN<\/span><span class=\"nl-text\">Used where a team isn't required, no outside support is needed, and the <strong>individual's experience\/qualifications are paramount<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">3<\/span><span class=\"nl-text\">Selected by <strong>comparison of qualifications of at least three candidates<\/strong> who expressed interest or were approached; advertised on <strong>CPPP & GeM<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CEC<\/span><span class=\"nl-text\">The <strong>CEC<\/strong> awards marks for education & experience (may interview) and recommends remuneration.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DN<\/span><span class=\"nl-text\">Direct negotiation only in exceptional cases \u2014 continuation of competitively-won work, natural-disaster emergencies, or sole qualified individual. Conflict-of-interest rules apply to the <strong>parent firm<\/strong> of an employed candidate.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-agencies\">\r\n <span class=\"section-badge purple\">\u00a7 7.3\u20137.4<\/span>\r\n <h3>Specialised agencies, institutions & NGOs<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">7.3<\/div>\r\n <div class=\"cat-title\">Specialised Agencies \/ Institutions<\/div>\r\n <p>Government\/semi-government agencies, universities, professional institutions. Where they hold special expertise or back-up facilities, <strong>SSS<\/strong> may be appropriate with <strong>full justification<\/strong> that it is in the Entity's best interest. For Government & semi-Government agencies, SSS is an appropriate method.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">7.4<\/div>\r\n <div class=\"cat-title\">NGOs<\/div>\r\n <p>Shortlists for community\/participatory assignments may comprise NGOs entirely; then <strong>QCBS<\/strong> is used, with criteria reflecting grassroots experience, participatory approaches, committed leadership & beneficiary participation. <strong>SSS<\/strong> may hire a local NGO for a <strong>very small assignment in a remote area<\/strong> where only one is available.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-pa\">\r\n <span class=\"section-badge amber\">\u00a7 7.5\u20137.6<\/span>\r\n <h3>Procurement & inspection agents<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">QCBS with cost weight up to 50%<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">PA<\/span><span class=\"nl-text\"><strong>Procurement Agents<\/strong> handling specific items are paid a <strong>percentage<\/strong> of value handled and selected under <strong>QCBS with cost weight up to 50%<\/strong> \u2014 but at 50% finance dominates, so the <strong>quality threshold must be set high<\/strong>. Advisory-only PAs use QCBS time-based contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">IA<\/span><span class=\"nl-text\"><strong>Inspection Agents<\/strong> (pre-shipment\/on-arrival quality, quantity, price) \u2014 also <strong>QCBS, cost up to 50%<\/strong>, paid as a % of goods inspected. Clauses making the <strong>supplier pay inspectors' travel\/stay\/hospitality must be avoided<\/strong> \u2014 they compromise inspection independence.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-fin\">\r\n <span class=\"section-badge blue\">\u00a7 7.7\u20137.8<\/span>\r\n <h3>Financial advisors & auditors<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">7.7<\/div>\r\n <div class=\"cat-title\">Financial Advisors<\/div>\r\n <p>For <strong>studies\/financial consultancy<\/strong> \u2014 any suitable method. For <strong>restructuring, M&A, demerger, privatisation<\/strong> \u2014 <strong>QCBS<\/strong>, with remuneration as a <strong>lump-sum retainer + a success fee<\/strong> (preferably a % of transaction value). Cost weight may exceed the standard (e.g. <strong>30%<\/strong>), or LCS may be used.<\/p>\r\n <\/div>\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">7.8<\/div>\r\n <div class=\"cat-title\">Auditors<\/div>\r\n <p>Auditing runs under well-defined ToR and professional standards, so auditors are selected by the <strong>LCS<\/strong> system, with cost as the selection factor.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-logo\">\r\n <span class=\"section-badge gold\">\u00a7 7.9<\/span>\r\n <h3>Public competition for logo \/ symbol design \u2014 Rule 196<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Transparent, fair & objective<\/div>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">PUB<\/span><span class=\"nl-text\">Wide publicity on the Ministry's website and the <strong>CPPP<\/strong> (e-publishing module).<\/span><\/li>\r\n <li><span class=\"nl-tag\">LAW<\/span><span class=\"nl-text\">Keep in view the <strong>Official Languages Act<\/strong> and the <strong>Emblems & Names (Prevention of Improper Use) Act<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NOTICE<\/span><span class=\"nl-text\">A detailed <strong>Competition Notice<\/strong> states objectives, qualification & evaluation criteria (single\/multi-stage, or public voting for items of national importance), submission format, prizes, and jury composition.<\/span><\/li>\r\n <li><span class=\"nl-tag\">IPR<\/span><span class=\"nl-text\">It is clearly stipulated that the <strong>intellectual property rights of the winning design rest with the sponsoring agency<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz7\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 7 Quiz \u2014 special engagements<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 7. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage7\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore7\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext7\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c7-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 7 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Engagement<\/th><th>Method \/ Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>SSS nomination report<\/td><td>CFA reports all nominations <strong>monthly<\/strong> to Secretary\/Head (CVC)<\/td><\/tr>\r\n <tr><td>Individual consultant<\/td><td>Compare qualifications of <strong>\u2265 3<\/strong> candidates; CEC scores & may interview<\/td><\/tr>\r\n <tr><td>Specialised Govt agency<\/td><td><strong>SSS<\/strong> appropriate, with full justification<\/td><\/tr>\r\n <tr><td>NGOs<\/td><td><strong>QCBS<\/strong> (SSS for a remote single-NGO micro-assignment)<\/td><\/tr>\r\n <tr><td>Procurement agents<\/td><td><strong>QCBS<\/strong>, cost weight <strong>up to 50%<\/strong> (keep quality bar high)<\/td><\/tr>\r\n <tr><td>Inspection agents<\/td><td>QCBS, cost up to 50%; supplier must <strong>not<\/strong> fund inspectors<\/td><\/tr>\r\n <tr><td>Financial advisors<\/td><td>Restructuring\/M&A \u2192 <strong>QCBS<\/strong>; retainer + success fee<\/td><\/tr>\r\n <tr><td>Auditors<\/td><td><strong>LCS<\/strong><\/td><\/tr>\r\n <tr><td>Logo competition (Rule 196)<\/td><td>Wide publicity; <strong>IPR of winner rests with sponsoring agency<\/strong><\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch8\" data-chapter=\"8\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c8-monitor\">\r\n <span class=\"chapter-badge\">CH 8 \u00b7 MONITORING<\/span>\r\n <h2>Monitoring the Consultancy \/ Other Services Contract<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Monitoring \u2014 Rule 195, GFR<\/div>\r\n <div class=\"def-text\">\r\n The awarding Ministry stays involved <strong>throughout<\/strong> so the output matches the contracted objectives. A <strong>Contract Monitoring Committee (CMC)<\/strong> is formed and a counterpart <strong>Project Manager<\/strong> (the nodal person) is designated, enabling <strong>Management by Exception<\/strong> against the risk-and-mitigation milestones.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">8.2 \u00b7 Contract Monitoring Committee (CMC)<\/div>\r\n <p>Constituted after selection, with <strong>at least three members<\/strong> at the appropriate level including the <strong>user's representative<\/strong> (CEC members may be reused). It monitors progress, ensures the assignment runs per contract, assesses deliverables, <strong>accepts\/rejects<\/strong> parts of the work, and <strong>levies liquidated damages or penalty<\/strong>. Its functions span the notice to proceed, inception review, contract variations, progress & expenditure monitoring, dispute handling, termination, final payment\/closure and post-contract evaluation.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-tlmonitor\">\r\n <span class=\"section-badge teal\">\u00a7 8.6\u20138.7<\/span>\r\n <h3>Monitoring time-based vs lump-sum contracts<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">8.6<\/div>\r\n <div class=\"cat-title\">Time-based<\/div>\r\n <p>Mobilisation\/demobilisation of key experts is watched carefully \u2014 the <strong>contract amount can be fully spent while the supervised work (e.g. construction) is barely half done<\/strong>, leading to claims & disputes.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">8.7<\/div>\r\n <div class=\"cat-title\">Lump-sum<\/div>\r\n <p>Draft-report quality is checked carefully <strong>before releasing stage payments<\/strong>. For extra services, amend the contract promptly \u2014 generally the increase should be <strong>not more than 10\u201315%<\/strong>.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-variations\">\r\n <span class=\"section-badge amber\">\u00a7 8.10<\/span>\r\n <h3>Issuing contract variations<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">When changes have a cost\/timing impact<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">10%<\/span><span class=\"nl-text\">If a variation increases the contract amount by <strong>more than 10%<\/strong>, the <strong>CA's prior approval<\/strong> is required; the amendment is published on the <strong>same e-procurement portal<\/strong> as the original tender.<\/span><\/li>\r\n <li><span class=\"nl-tag\">IT<\/span><span class=\"nl-text\">For <strong>IT projects<\/strong>, change-request value should generally be within <strong>\u00b115%<\/strong>, handled via a mechanism in the RfP and a <strong>Change Control Board<\/strong> (academic\/industry experts) whose technical & financial decisions are final.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-substitution\">\r\n <span class=\"section-badge purple\">\u00a7 8.11<\/span>\r\n <h3>Substitution of named key personnel<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Tightly controlled, with remuneration penalties<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">QUAL<\/span><span class=\"nl-text\">A replacement must be <strong>equally or better qualified<\/strong>; remuneration <strong>not more<\/strong> than for the original; the consultant <strong>bears all substitution costs<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">30%<\/span><span class=\"nl-text\">Substitution ordinarily limited to <strong>not more than 30%<\/strong> of total key personnel.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SLAB<\/span><span class=\"nl-text\">Remuneration reductions: first 10% of replacements \u2192 <strong>5%<\/strong>; next 10% \u2192 <strong>10%<\/strong>; third 10% \u2192 <strong>15%<\/strong> (illustrative slabs, specified in the tender).<\/span><\/li>\r\n <li><span class=\"nl-tag\">IT-SYS<\/span><span class=\"nl-text\">IT-enabled attendance systems may verify key personnel are present per the deployment schedule.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-disputes\">\r\n <span class=\"section-badge red\">\u00a7 8.13<\/span>\r\n <h3>Disputes & arbitration<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Resolve early; appeal sparingly<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">ADR<\/span><span class=\"nl-text\">Before arbitration\/litigation, parties may try <strong>mutual discussion, mediation & conciliation<\/strong>; the arbitral award is <strong>binding<\/strong>, governed by the Arbitration Clause.<\/span><\/li>\r\n <li><span class=\"nl-tag\">APPEAL<\/span><span class=\"nl-text\">Awards against the Government are <strong>not appealed routinely<\/strong> \u2014 a board\/committee weighs legal merit and realistic chances before appealing; casual appeals cause heavy damages\/interest.<\/span><\/li>\r\n <li><span class=\"nl-tag\">75%<\/span><span class=\"nl-text\">Where an award is challenged, <strong>75% of the arbitral award is paid against a Bank Guarantee<\/strong> into a designated <strong>Escrow Account<\/strong> (new <strong>Rule 227A<\/strong>) \u2014 used first for lenders' dues, then project completion.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-fm\">\r\n <span class=\"section-badge slate\">\u00a7 8.14\u20138.16<\/span>\r\n <h3>Force majeure, termination & closure<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">FM<\/span><span class=\"nl-text\"><strong>Force Majeure<\/strong> suspends \u2014 not excuses \u2014 performance; notice must be given <strong>when it occurs<\/strong> (not ex-post-facto). If it prevents performance for over <strong>90 days<\/strong>, either party may terminate without financial repercussion.<\/span><\/li>\r\n <li><span class=\"nl-tag\">TERM<\/span><span class=\"nl-text\"><strong>Termination<\/strong> may be for external factors, convenience (e.g. budget shortage) or breach; the contract provides a <strong>30-day notice period<\/strong> and payment of legitimate outstanding fees\/wind-up costs.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CLOSE<\/span><span class=\"nl-text\">The contract is closed the <strong>day after the completion date<\/strong>; later expenditure is unlikely to be paid. The final claim must be submitted <strong>within 60 days<\/strong> of completion.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-risks\">\r\n <span class=\"section-badge gold\">\u00a7 8.17<\/span>\r\n <h3>Monitoring \u2014 risks & mitigation<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:42%\"><col style=\"width:58%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Request to <strong>substitute key experts<\/strong> during implementation (citing non-availability, health).<\/td><td>Allow only per contract \u2014 exceptional cases like death\/medical incapacity \u2014 with <strong>equal or better<\/strong> credentials, utmost scrutiny, and <strong>no undue financial benefit<\/strong> to the contractor.<\/td><\/tr>\r\n <tr><td><strong>Cost overruns in time-based contracts<\/strong> \u2014 delay benefits the consultant.<\/td><td>Include an <strong>upper limit<\/strong> of total payment; CA reviews extension once reached; build contract-management capacity; track progress at <strong>50% and 80%<\/strong> milestones; scrutinise timesheets & reimbursables.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz8\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 8 Quiz \u2014 monitoring, variations & disputes<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 8. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage8\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore8\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext8\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c8-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 8 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Monitoring rule<\/td><td><strong>Rule 195<\/strong>; CMC + counterpart Project Manager<\/td><\/tr>\r\n <tr><td>CMC size<\/td><td><strong>At least 3 members<\/strong> incl. user representative<\/td><\/tr>\r\n <tr><td>Lump-sum extra services<\/td><td>Increase generally <strong>\u2264 10\u201315%<\/strong><\/td><\/tr>\r\n <tr><td>Contract variation > 10%<\/td><td>Needs <strong>CA prior approval<\/strong>; published on e-portal<\/td><\/tr>\r\n <tr><td>IT change request<\/td><td>Within <strong>\u00b115%<\/strong>; Change Control Board decision final<\/td><\/tr>\r\n <tr><td>Key-staff substitution cap<\/td><td>Ordinarily <strong>\u2264 30%<\/strong>; reductions 5% \/ 10% \/ 15% by slab<\/td><\/tr>\r\n <tr><td>Challenged arbitral award<\/td><td><strong>75%<\/strong> paid against BG into Escrow (Rule 227A)<\/td><\/tr>\r\n <tr><td>Force majeure<\/td><td>Suspends performance; > <strong>90 days<\/strong> \u2192 either party may terminate<\/td><\/tr>\r\n <tr><td>Termination notice<\/td><td><strong>30 days<\/strong><\/td><\/tr>\r\n <tr><td>Final claim<\/td><td>Within <strong>60 days<\/strong> of completion<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch9\" data-chapter=\"9\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c9-applic\">\r\n <span class=\"chapter-badge\">CH 9 \u00b7 OTHER SERVICES<\/span>\r\n <h2>Procurement (Outsourcing) of Other (Non-consultancy) Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Self-contained chapter<\/div>\r\n <div class=\"def-text\">\r\n Other services are defined <strong>by exclusion<\/strong> \u2014 routine, repetitive physical\/procedural work with tangible standards (transport, logistics, courier, upkeep, drilling, aerial photography, mapping). For anything not covered here, refer to the <strong>Manual of Policies & Procedures for Procurement of Goods<\/strong> \u2014 <em>not<\/em> the consultancy provisions.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Classification (9.1)<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">\u22651yr<\/span><span class=\"nl-text\"><strong>Outsourcing<\/strong> = sustained, long-term deployment (<strong>one year or more<\/strong>) of outside agencies for work once done in-house (security, horticulture, housekeeping, catering, messenger services).<\/span><\/li>\r\n <li><span class=\"nl-tag\">WORKS<\/span><span class=\"nl-text\">Construction\/repair of <strong>civil assets<\/strong> \u2192 handle as <strong>Works<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">GOODS<\/span><span class=\"nl-text\">Repair\/AMC\/installation of <strong>mechanical, electrical or ICT assets<\/strong> \u2192 handle as <strong>Goods<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CONS<\/span><span class=\"nl-text\">Where the <strong>intellectual\/advisory part dominates<\/strong> (physical incidental) \u2192 handle as <strong>Consultancy<\/strong> (e.g. underwater dam-safety analysis).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-period\">\r\n <span class=\"section-badge teal\">\u00a7 9.4<\/span>\r\n <h3>Contract period & principles<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Activity Schedule, period & multiple L1s<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">SCHED<\/span><span class=\"nl-text\">Instead of a ToR, other services use an <strong>Activity Schedule<\/strong> (well-defined scope & time-frame).<\/span><\/li>\r\n <li><span class=\"nl-tag\">2yr<\/span><span class=\"nl-text\">Initial contract period is normally <strong>two years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">+1yr<\/span><span class=\"nl-text\">Extension by a further <strong>one year<\/strong> if service is satisfactory; but if a <strong>cumulative penalty of 5%<\/strong> of contract value has been levied, no extension beyond the initial two years.<\/span><\/li>\r\n <li><span class=\"nl-tag\">L1s<\/span><span class=\"nl-text\">For <strong>multiple L-1 bidders<\/strong>, GeM offers system-determined selection or purchaser selection \u2014 the method must be <strong>decided before the tender is issued<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">HR<\/span><span class=\"nl-text\">Hiring manpower through contracts is <strong>avoided<\/strong> (regularisation risk); I-cards must identify the holder as the <strong>contractor's representative<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-selection\">\r\n <span class=\"section-badge purple\">\u00a7 9.5\u20139.6<\/span>\r\n <h3>Contract types & system of selection<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Single-stage, lowest-price (Rules 201, 204, 206)<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">TYPE<\/span><span class=\"nl-text\">Lump-sum, time-based, <strong>unit\/item-rate<\/strong> (e.g. taxi per km) or indefinite-delivery contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1-STAGE<\/span><span class=\"nl-text\">A simpler <strong>single-stage RfP<\/strong> process (Rule 206); a pre-qualification (PQB) stage may be added for highly technical services (seismic surveys, airborne data).<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b910L<\/span><span class=\"nl-text\"><strong>Above \u20b910 lakh<\/strong> \u2192 advertised RfP; <strong>below \u20b910 lakh<\/strong> \u2192 shortlist of <strong>more than three<\/strong> from a moderated long-list, or a panel (Rule 201).<\/span><\/li>\r\n <li><span class=\"nl-tag\">L-1<\/span><span class=\"nl-text\">Selection is normally on <strong>lowest price (L-1)<\/strong> among technically responsive offers (Rule 204); SSS only in special circumstances.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-gem\">\r\n <span class=\"section-badge gold\">\u00a7 9.7<\/span>\r\n <h3>Government e-Marketplace (GeM) \u2014 Rule 149<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Mandatory for goods\/services available on GeM<\/div>\r\n <p>End-to-end online procurement; supplier credentials certified by <strong>GeM SPV<\/strong>; procuring authorities certify rate reasonableness. Direct online-purchase ceilings:<\/p>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:34%\"><col style=\"width:66%\"><\/colgroup>\r\n <thead><tr><th>Value band<\/th><th>Mode of purchase on GeM<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Up to \u20b925,000<\/td><td>Any available supplier meeting quality, specification & delivery.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">\u20b925,000 \u2013 \u20b95,00,000<\/td><td>GeM seller with the <strong>lowest price among \u2265 3 different manufacturers<\/strong>.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Above \u20b95,00,000<\/td><td>Lowest-price supplier after <strong>mandatory online bidding \/ reverse auction<\/strong>.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Automobiles<\/td><td>Direct-purchase ceiling is <strong>\u20b930 lakh<\/strong> (instead of \u20b925,000).<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">GeM discipline<\/div>\r\n <p>The <strong>Annual Procurement Plan<\/strong> is projected on GeM <strong>within 30 days<\/strong> of Budget approval; reasonableness is checked via Business Analytics (Last Purchase Price). A demand must <strong>not be split into small quantities<\/strong> to avoid L-1 buying or higher-authority sanction.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-pay\">\r\n <span class=\"section-badge blue\">\u00a7 9.7.7<\/span>\r\n <h3>GeM payment \u2014 CRAC & PRC<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Receipt, acceptance & deemed receipt<\/div>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">CRAC<\/span><span class=\"nl-text\">Goods: <strong>100% payment (incl. GST)<\/strong> after receipt & acceptance and generation of the <strong>Consignee Receipt & Acceptance Certificate (CRAC)<\/strong>, less recoveries\/LD. Services: 100% per payment cycle after the Service CRAC.<\/span><\/li>\r\n <li><span class=\"nl-tag\">INSTALL<\/span><span class=\"nl-text\">Installation-intensive goods: <strong>80\u201390%<\/strong> on delivery (Delivery CRAC), balance <strong>10\u201320%<\/strong> after installation, testing & commissioning (Installation CRAC).<\/span><\/li>\r\n <li><span class=\"nl-tag\">PRC<\/span><span class=\"nl-text\">The consignee issues a <strong>Provisional Receipt Certificate (PRC) within 48 hours<\/strong>; if not acknowledged, a <strong>Deemed PRC auto-generates after 96 hours<\/strong>. A <strong>10-day<\/strong> rejection\/return window applies from the receipt date.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PFMS<\/span><span class=\"nl-text\">Payments run through <strong>PFMS<\/strong> or the GeM Pool Account; on sanction, funds are <strong>blocked<\/strong> in PFMS for the contract\/payment cycle.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-sla\">\r\n <span class=\"section-badge red\">\u00a7 9.18\u20139.19<\/span>\r\n <h3>Service Level Agreement & monitoring<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">SLA \u2014 a balanced, two-sided framework<\/div>\r\n <p>An <strong>SLA<\/strong> creates common understanding of services, priorities & responsibilities. It is specified in the bidding document and finalised <strong>before services start<\/strong>, must be <strong>balanced to both parties<\/strong> with penalties on both sides, and has <strong>Service elements<\/strong> (scope, availability, standards, responsibilities, escalation) and <strong>Management elements<\/strong> (tracking, reporting, dispute resolution, revision). Contract monitoring follows <strong>Chapter 8 (Rule 205)<\/strong>, with the provider submitting a Programme before commencement.<\/p>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz9\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 9 Quiz \u2014 other services & GeM<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 9. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage9\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore9\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext9\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c9-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 9 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Fallback manual<\/td><td>Procurement of <strong>Goods<\/strong> manual (not consultancy)<\/td><\/tr>\r\n <tr><td>Civil vs mechanical asset<\/td><td>Civil \u2192 <strong>Works<\/strong>; mechanical\/electrical\/ICT \u2192 <strong>Goods<\/strong><\/td><\/tr>\r\n <tr><td>Scope document<\/td><td><strong>Activity Schedule<\/strong> (not a ToR)<\/td><\/tr>\r\n <tr><td>Contract period<\/td><td><strong>2 years<\/strong> initial, extendable <strong>+1 year<\/strong> if satisfactory<\/td><\/tr>\r\n <tr><td>No extension if<\/td><td>Cumulative penalty of <strong>5%<\/strong> of contract value levied<\/td><\/tr>\r\n <tr><td>Selection<\/td><td>Single-stage, <strong>L-1<\/strong> among responsive (Rules 204, 206)<\/td><\/tr>\r\n <tr><td>Below \u20b910 lakh<\/td><td>Shortlist of <strong>> 3<\/strong> (Rule 201)<\/td><\/tr>\r\n <tr><td>GeM direct purchase<\/td><td>\u2264 \u20b925,000 any seller \u00b7 \u20b925k\u2013\u20b95L lowest of <strong>\u22653 makers<\/strong> \u00b7 >\u20b95L bidding<\/td><\/tr>\r\n <tr><td>Automobiles ceiling<\/td><td><strong>\u20b930 lakh<\/strong><\/td><\/tr>\r\n <tr><td>Annual Procurement Plan<\/td><td>On GeM within <strong>30 days<\/strong> of Budget approval<\/td><\/tr>\r\n <tr><td>GeM acceptance<\/td><td><strong>CRAC<\/strong>; PRC in <strong>48 hrs<\/strong>; <strong>Deemed PRC at 96 hrs<\/strong><\/td><\/tr>\r\n <tr><td>SLA<\/td><td>Balanced, penalties both sides; finalised before services start<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n\r\n <\/main>\r\n<\/div>\r\n<script>\r\n\/* \u2500\u2500\u2500\u2500\u2500 Chapter (tab) switching + sidebar navigation \u2500\u2500\u2500\u2500\u2500 *\/\r\n(function(){\r\n var details = Array.prototype.slice.call(document.querySelectorAll('details.toc-chapter'));\r\n var panes = Array.prototype.slice.call(document.querySelectorAll('section.chapter-pane'));\r\n\r\n function showChapter(n, scrollTop){\r\n panes.forEach(function(p){ p.classList.toggle('active', p.getAttribute('data-chapter') === String(n)); });\r\n if (scrollTop){\r\n var pane = document.getElementById('pane-ch'+n);\r\n if (pane) pane.scrollIntoView({behavior:'smooth', block:'start'});\r\n }\r\n }\r\n\r\n details.forEach(function(d){\r\n d.addEventListener('toggle', function(){\r\n if (d.open){\r\n details.forEach(function(o){ if (o !== d) o.open = false; 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});\r\n html += '<\/div><div class=\"quiz-fb\"><\/div>';\r\n stage.innerHTML = html;\r\n var fb = stage.querySelector('.quiz-fb');\r\n var opts = Array.prototype.slice.call(stage.querySelectorAll('.quiz-opt'));\r\n opts.forEach(function(b){\r\n b.addEventListener('click', function(){\r\n var chosen = parseInt(b.getAttribute('data-i'), 10);\r\n opts.forEach(function(x){ x.classList.add('lock'); });\r\n opts[q.a].classList.add('correct');\r\n if (chosen === q.a){ score++; }\r\n else { b.classList.add('wrong'); }\r\n answered++;\r\n scoreEl.textContent = 'Score '+score+' \/ '+answered;\r\n fb.innerHTML = (chosen === q.a ? '<strong>Correct.<\/strong> ' : '<strong>Not quite.<\/strong> ') + q.fb;\r\n nextBtn.disabled = (idx >= questions.length - 1);\r\n if (idx >= questions.length - 1){ nextBtn.textContent = 'Done \\u2713'; }\r\n });\r\n });\r\n }\r\n nextBtn.addEventListener('click', function(){\r\n if (idx < questions.length - 1){ idx++; nextBtn.disabled = true; render(); }\r\n });\r\n render();\r\n}\r\n\/* QUIZ_BUILDERS *\/\r\nbuildQuiz('quizStage1','quizScore1','quizNext1',[\r\n {q:'Which constitutional provision sits at the apex of the framework, requiring Government contracts to be in writing by authorised officers?', opts:['Article 19(1)(g)','Article 299','Article 14','Article 282'], a:1, fb:'Article 299 mandates that contracts binding on the Government be executed in writing by specifically authorised officers.'},\r\n {q:'Under the GFR, direct engagement of a retired Government servant as a consultant is \u2014', opts:['A standard consultancy service','Excluded from \"consultancy services\" (Rule 177)','Permitted only through QCBS','Allowed against regular posts'], a:1, fb:'Rule 177 excludes direct engagement of retired Government servants; they may be engaged only for a specific task and duration with clear output goals.'},\r\n {q:'A supplier offering minimum 50% local content under the Make-in-India Order is \u2014', opts:['Class-II local supplier','Non-local supplier','Class-I local supplier','A preferred bidder'], a:2, fb:'A Class-I local supplier needs \u2265 50% local content; Class-II needs \u2265 20%. The margin of purchase preference is fixed at 20%.'},\r\n {q:'Procurements under the Make-in-India Order are exempt where the estimated value is below \u2014', opts:['Rs 5 lakh','Rs 10 lakh','Rs 50 lakh','Rs 2 crore'], a:0, fb:'Procurements below Rs 5 lakh are exempt, provided the procurement is not split to evade the Order (auditor certificate of local content is needed above Rs 10 crore).'},\r\n {q:'Under the MSE Policy, payment to an MSE supplier must be made within how many days of supply, failing which compound interest accrues?', opts:['30 days','45 days','60 days','90 days'], a:1, fb:'Chapter V of the MSMED Act, 2006 caps the agreed payment period at 45 days; delay attracts compound interest at three times the RBI bank rate.'},\r\n {q:'An MSE quoting within the L1 + 15% band (L1 being a non-MSE) may supply up to \u2014', opts:['15% of tendered value','20% of tendered value','25% of tendered value','50% of tendered value'], a:2, fb:'Such an MSE may supply up to 25% of total tendered value by matching L1; the 25% is distributed proportionately among qualifying MSEs.'},\r\n {q:'A \"start-up\" eligible for relaxation under Rule 173(i) must have turnover in any financial year not exceeding \u2014', opts:['Rs 25 crore','Rs 50 crore','Rs 100 crore','Rs 250 crore'], a:2, fb:'A DPIIT-recognised start-up is up to 10 years old with turnover not exceeding Rs 100 crore in any financial year.'},\r\n {q:'The Concept Paper \/ Procurement Proposal for services, which precedes all later stages, is referenced under \u2014', opts:['Rule 145','Rule 159','Rule 181','Rule 264'], a:2, fb:'Rule 181 covers in-principle approval based on the Procurement Proposal (Purpose + Outcome + Justification), the document that plays the role an Indent plays for goods.'}\r\n]);\r\nbuildQuiz('quizStage2','quizScore2','quizNext2',[\r\n {q:'When more than how many experts are required, a firm\\u2019s team should be used rather than individuals?', opts:['Two','Three','Five','Eight'], a:1, fb:'If more than three experts are required, the assignment should normally be undertaken by a team from a firm.'},\r\n {q:'A firm submits one bid individually and also participates as a JV partner in a second bid for the same assignment. The consequence is \u2014', opts:['Only the second bid is rejected','Both proposals are disqualified','The firm is debarred for two years','It is allowed if disclosed'], a:1, fb:'Under the conflicting-association rule, a firm may submit only one proposal; participating in more than one disqualifies all such proposals.'},\r\n {q:'How many distinct prohibited practices are listed under the Code of Integrity (CIPP)?', opts:['Four','Five','Six','Seven'], a:2, fb:'Six: corrupt, fraudulent, anti-competitive, coercive, conflict of interest, and obstructive practices.'},\r\n {q:'A gift inadvertently received in violation of the conduct rules must be \u2014', opts:['Retained if below the limit','Returned, or reported and deposited in the Toshakhana\/Treasury','Donated to charity','Declared only at year-end'], a:1, fb:'It must be returned, or else reported and deposited in the Toshakhana\/Treasury. Cash and cash-exchangeable vouchers are never acceptable, regardless of amount.'},\r\n {q:'Information for action before the Competition Commission of India must be filed under the signature of an officer of at least \u2014', opts:['Section Officer level','Under Secretary level','Joint Secretary level','Secretary level'], a:2, fb:'Such information is filed under the signature of a Joint Secretary-level officer.'},\r\n {q:'The maximum total tenure of an Independent External Monitor (IEM) is \u2014', opts:['Three years','Five years','Six years','Seven years'], a:1, fb:'An initial 3-year term, extendable by 2 years \\u2014 a maximum of 5 years. IEMs are below 70, CVC-approved, and their advice is not binding.'},\r\n {q:'Under Rule 151, a bidder convicted under the Prevention of Corruption Act may be debarred from any procuring entity for a period not exceeding \u2014', opts:['One year','Two years','Three years','Five years'], a:2, fb:'Conviction-based debarment extends to any procuring entity for up to three years; debarment for an integrity breach is limited to two years and to the single entity.'},\r\n {q:'Ordinarily, the minimum period for which a firm should be debarred is \u2014', opts:['One month','Three months','Six months','One year'], a:2, fb:'Ordinarily the period should be not less than six months. Debarment automatically extends to all allied and successor firms.'}\r\n]);\r\nbuildQuiz('quizStage3','quizScore3','quizNext3',[\r\n {q:'Which contract type is the preferred default, under which the proposal includes all prices with no arithmetical correction during evaluation?', opts:['Time-Based','Lump Sum (Firm Fixed Price)','Percentage','Indefinite Delivery'], a:1, fb:'The Lump Sum (Firm Fixed Price) contract is preferred; payments are linked to specified deliverables and no price adjustment is allowed during evaluation.'},\r\n {q:'An on-call contract for services of indefinite extent, analogous to a Rate Contract and awarded on the unit rate quoted, is a \u2014', opts:['Lump Sum contract','Percentage contract','Indefinite Delivery contract','Retainer-cum-success-fee contract'], a:2, fb:'The Indefinite Delivery (Price Agreement) contract is akin to a Rate\/Framework Contract; the provider is selected on the unit rate quoted and a maximum value should be set.'},\r\n {q:'The shortlist of consultants drawn up after an Expression of Interest should contain \u2014', opts:['Not fewer than 2 and not more than 5','Not fewer than 3 and not more than 8','Exactly 5','At least 10'], a:1, fb:'The shortlist should include not fewer than three (3) and not more than eight (8) eligible firms.'},\r\n {q:'Under Least Cost Selection (Rule 193), the winning bid among technically responsive offers is chosen \u2014', opts:['By weighting technical and cost scores','On lowest price (L-1) alone, with no weight to technical marks','On the highest technical score','By negotiation'], a:1, fb:'In LCS, after a minimum technical benchmark (normally 75\/100 or pass\/fail), the L-1 offer wins on price alone. It is the default method.'},\r\n {q:'In QCBS, the weightage assigned to the technical (quality) score should never exceed \u2014', opts:['70%','75%','80%','90%'], a:2, fb:'Typical weighting is 70% technical \/ 30% cost, but technical weight should never exceed 80%; complex assignments use 80\/20.'},\r\n {q:'Per the QCBS weighting table, highly complex \/ specialised assignments use a Quality\/Cost ratio of \u2014', opts:['50\/50','60\/40','75\/25','80\/20'], a:3, fb:'80\/20 for highly complex\/specialised assignments; moderate complexity 75\\u201365 \/ 35\\u201325; routine 60\\u201350 \/ 40\\u201350 (LCS appropriate).'},\r\n {q:'Awards made on a Single Source \/ nomination basis must be reported to the Secretary\/Board\/Chief Executive \u2014', opts:['Annually','Every quarter','Every month','Only on audit demand'], a:1, fb:'A report on nomination-basis awards is submitted every quarter; the audit committee may check at least 10% of such cases (Rule 194).'},\r\n {q:'Fixed Budget \\u2013 based Selection (FBS) is most appropriate when the services are \u2014', opts:['Highly complex and critical','Simple and\/or repetitive and precisely definable','Proprietary to a single firm','An emergency continuation of prior work'], a:1, fb:'FBS fixes the budget in the tender and suits simple\/repetitive, precisely definable services where the budget can be credibly estimated; the highest technical score within budget wins.'}\r\n]);\r\nbuildQuiz('quizStage4','quizScore4','quizNext4',[\r\n {q:'In procurement of consultancy, the Terms of Reference (ToR) is the analogue of which document used in procurement of goods?', opts:['The purchase order','The Description, Quantity and Technical Specification','The inspection certificate','The rate contract'], a:1, fb:'Rule 185 \\u2014 the ToR plays the role that Description, Quantity and Technical Specification play in procurement of goods.'},\r\n {q:'In a properly drafted consultancy ToR, the Detailed Scope of Work should describe \\u2014', opts:['The exact methodology to be followed','Only the activities, leaving methodology to the consultant','Individual staff hourly rates','The financial bid format'], a:1, fb:'The ToR should describe only the activities, not the approach or methodology, since devising the methodology is the consultant\\u2019s task (suggestions may be offered).'},\r\n {q:'An Inception Report is normally expected to be submitted about \\u2014', opts:['Two weeks after commencement','Six weeks after commencement','Three months after commencement','At the end of the assignment'], a:1, fb:'The Inception Report is submitted about six weeks after the commencement date and flags any ToR or staffing problems early.'},\r\n {q:'For a phased assignment, the Procuring Entity should take no more than how long to review and approve a draft interim report?', opts:['7 days','15 days','30 days','45 days'], a:1, fb:'The Procuring Entity should not take more than 15 days to review and approve draft interim reports, as they may affect later phases.'},\r\n {q:'Costs for a consultancy assignment are divided into which two broad categories?', opts:['Direct and indirect taxes','Fixed and variable overheads','Fee\/remuneration and reimbursable costs','Capital and revenue'], a:2, fb:'Costs are split into (a) fee or remuneration (per the contract type) and (b) reimbursable costs.'},\r\n {q:'Procurement of the consultancy may be initiated only after \\u2014', opts:['The consultant is mobilised','CA approval of the ToR and budgetary provision\/confirmation','The first progress report','The pre-bid conference'], a:1, fb:'The ToR must be compatible with the budget; CA approval and budgetary provision\/confirmation must precede initiation of procurement (4.3).'},\r\n {q:'Under Rule 160, a case may be exempted from mandatory e-procurement on grounds of national security only with \\u2014', opts:['The convenor\\u2019s note alone','Approval of the concerned Secretary and concurrence of the Financial Adviser','A GeM waiver','CVC clearance'], a:1, fb:'National-security\/strategic-confidentiality cases may be exempted with the concerned Secretary\\u2019s approval and the Financial Adviser\\u2019s concurrence; GeM procurements are outside these instructions.'}\r\n]);\r\nbuildQuiz('quizStage5','quizScore5','quizNext5',[\r\n {q:'Under Rule 183(ii), an openly advertised Expression of Interest is required for procurement of consultancy above \\u2014', opts:['Rs 10 lakh','Rs 25 lakh','Rs 50 lakh','Rs 1 crore'], a:1, fb:'Above Rs 25 lakh, shortlisting is by an openly advertised EoI (REoI) published on CPPP and GeM.'},\r\n {q:'For procurement of other (non-consultancy) services, an advertised RfP is normally required when the value is \\u2014', opts:['Above Rs 10 lakh','Above Rs 25 lakh','Above Rs 50 lakh','Always, regardless of value'], a:0, fb:'Other services use a single-stage process: above Rs 10 lakh an advertised RfP; below Rs 10 lakh the RfP may go to a selected shortlist.'},\r\n {q:'The short list of consultants for a competitive process should comprise \\u2014', opts:['At least 2 and at most 6','A minimum of 3 (Rule 184) and generally not more than 8','Exactly 5','At least 8'], a:1, fb:'Rule 184 requires a minimum of three firms, and the list should generally not exceed eight to avoid delays in RfP evaluation.'},\r\n {q:'No Global Tender Enquiry shall ordinarily be invited for procurements up to \\u2014', opts:['Rs 50 crore','Rs 100 crore','Rs 200 crore','Rs 500 crore'], a:2, fb:'Under Rule 161, no GTE shall be invited up to Rs 200 crore; exceptions need detailed justification and prior approval of the competent authority specified by DoE.'},\r\n {q:'A proposal to invite a GTE below the threshold must be approved at the level of \\u2014', opts:['The Section Officer','The Administrative Ministry with FA concurrence and Secretary approval','Any autonomous body','The CVC'], a:1, fb:'The proposal is submitted by the Administrative Ministry with the Financial Adviser\\u2019s concurrence and the concerned Secretary\\u2019s approval; proposals from individual offices\/CPSUs are not entertained.'},\r\n {q:'In the indicative qualification-criteria table, the highest weightage is assigned to \\u2014', opts:['Financial strength (15%)','General profile of key staff (25%)','Past experience \/ track record (60%)','Innovation (10%)'], a:2, fb:'Past experience\/track record carries 60%, key-staff profile 25% and financial strength 15%; firms securing the minimum (normally 75%) are shortlisted.'},\r\n {q:'Keeping the minimum qualifying turnover at 5\\u201310 times the estimated cost of the consultancy is described in the Manual as \\u2014', opts:['Mandatory','Prima facie high and to be kept only if adequately justified','Prohibited','The default for all tenders'], a:1, fb:'Such a level appears prima facie high and reduces competition; criteria should be reasonable, and high turnover kept only if adequately justified (5.2.10).'}\r\n]);\r\nbuildQuiz('quizStage6','quizScore6','quizNext6',[\r\n {q:'The proposal validity period specified in the Instructions to Consultants is normally \\u2014', opts:['30 days','45 days','60 days','90 days'], a:2, fb:'The ITC normally specifies a proposal validity of 60 days; it shall not indicate the budget except in Fixed Budget System selection.'},\r\n {q:'A price-adjustment (PVC) provision based on the CPI is included when a time-based or indefinite-delivery contract is expected to exceed \\u2014', opts:['6 months','12 months','18 months','24 months'], a:2, fb:'For time-based or indefinite-delivery contracts expected to exceed 18 months, a CPI-based price-adjustment provision is included; lump-sum contracts generally carry none.'},\r\n {q:'Advance payment to a private firm under a contract should not exceed \\u2014', opts:['20% of contract value','30% of contract value','40% of contract value','50% of contract value'], a:1, fb:'Advances are capped at 30% of contract value for private firms, 40% for a State\/Central agency or PSU, and six months\\u2019 amount for maintenance contracts \\u2014 with bank-guarantee safeguards.'},\r\n {q:'Under Rule 171, performance security is ordinarily \\u2014', opts:['1\\u20132% of contract value','5\\u201310% of contract value (reduced to 3% till 31.03.2023)','25% of contract value','Equal to the bid security'], a:1, fb:'Performance security is 5\\u201310% of contract value (temporarily reduced to 3% till 31.03.2023), furnished within 14 days of award, and is not required for contracts up to Rs 1 lakh.'},\r\n {q:'A Consultancy Evaluation Committee (CEC) under Rule 189 is constituted for cases with financial implications of more than \\u2014', opts:['Rs 1 lakh','Rs 5 lakh','Rs 10 lakh','Rs 25 lakh'], a:2, fb:'A CEC \\u2014 normally three members including the FA\/representative and a user representative (convenor) \\u2014 is constituted for cases over Rs 10 lakh.'},\r\n {q:'In the CEC rating scale, a proposal graded \\u201cGood (B)\\u201d is awarded \\u2014', opts:['Full marks','80% of full marks','60% of full marks','30% of full marks'], a:1, fb:'A = Very Good (full), B = Good (80%), C = Satisfactory (60%), D = Unsatisfactory (30%), E = Not Relevant (10%).'},\r\n {q:'For comparing financial proposals quoted in foreign currency, costs are converted to INR using the SBI BC selling rate on the \\u2014', opts:['Date of award','Date of opening the technical bids','Last date of bid submission','Date of the pre-bid meeting'], a:1, fb:'Conversion uses the State Bank of India BC selling rate on the date of opening the technical bids, as specified in the RfP (6.8.3).'},\r\n {q:'In QCBS, if two or more bids obtain the same final combined score, the tie is resolved in favour of the bid with the \\u2014', opts:['Lowest price','Highest technical score','Earliest submission','Largest turnover'], a:1, fb:'Under Rule 192, a tie in the final ranking is broken in favour of the bid with the highest technical score, which is ranked H-1.'}\r\n]);\r\nbuildQuiz('quizStage7','quizScore7','quizNext7',[\r\n {q:'Individual consultants are normally selected by comparing the qualifications of \\u2014', opts:['A single nominated candidate','At least three candidates','At least five candidates','All who apply, scored on cost'], a:1, fb:'Individual consultants are selected by comparison of qualifications of at least three candidates; the CEC awards marks for education and experience and may interview.'},\r\n {q:'When a shortlist for an assignment is composed entirely of NGOs, the selection method used is \\u2014', opts:['LCS','QCBS','SSS only','Percentage fee'], a:1, fb:'QCBS is followed for NGO shortlists, with criteria reflecting grassroots\/community-participation strengths; SSS is reserved for a remote single-NGO micro-assignment.'},\r\n {q:'When procurement agents are selected under QCBS, the cost element may be given a weight of up to \\u2014', opts:['20%','30%','50%','70%'], a:2, fb:'Cost may be weighted up to 50% for procurement and inspection agents; at that level finance dominates, so the quality threshold must be set sufficiently high.'},\r\n {q:'In contracts with suppliers, a clause requiring the supplier to pay for the inspecting officials\\u2019 travel, stay and hospitality is \\u2014', opts:['Standard and encouraged','To be discouraged as it compromises inspection independence','Mandatory for GTE','Allowed up to Rs 1 lakh'], a:1, fb:'Such provisions undermine the independence of inspection teams and must be strictly avoided.'},\r\n {q:'Auditors, who work under well-defined ToR and professional standards, are selected by \\u2014', opts:['QCBS','LCS','SSS','FBS'], a:1, fb:'Auditors are selected under the LCS system, with cost as the selection factor.'},\r\n {q:'For engaging financial advisors on a privatisation\/M&A transaction, the appropriate method and remuneration structure is \\u2014', opts:['LCS with a fixed fee','QCBS with a lump-sum retainer plus a success fee','Percentage contract only','SSS with no fee cap'], a:1, fb:'Such assignments use QCBS, with remuneration as a lump-sum retainer plus a success fee (preferably a percentage of the transaction value).'},\r\n {q:'In a public competition for a logo\/symbol design (Rule 196), the intellectual property rights of the winning design \\u2014', opts:['Remain with the designer','Rest with the sponsoring agency','Are shared equally','Pass to the CPPP'], a:1, fb:'The Competition Notice clearly stipulates that the IPR of the successful design rests with the sponsoring agency; the competition must keep the Official Languages Act and the Emblems & Names Act in view.'}\r\n]);\r\nbuildQuiz('quizStage8','quizScore8','quizNext8',[\r\n {q:'Monitoring of consultancy\/other-services contracts is governed by which rule, under which a Contract Monitoring Committee is formed?', opts:['Rule 185','Rule 189','Rule 195','Rule 206'], a:2, fb:'Rule 195 \\u2014 the Procuring Entity forms a CMC (at least three members including the user representative) and designates a counterpart Project Manager.'},\r\n {q:'A contract variation that increases the contract amount by more than 10% requires \\u2014', opts:['No approval','The CA\\u2019s prior approval','Only the consultant\\u2019s consent','CVC clearance'], a:1, fb:'Variations increasing the amount by more than 10% need the Competent Authority\\u2019s prior approval, and the amendment is published on the same e-procurement portal as the original tender.'},\r\n {q:'During execution, substitution of key personnel is ordinarily limited to not more than \\u2014', opts:['10% of key personnel','20% of key personnel','30% of key personnel','50% of key personnel'], a:2, fb:'Substitution is ordinarily limited to not more than 30% of total key personnel, with equally or better qualified replacements; remuneration is reduced by slabs (e.g. 5% \/ 10% \/ 15%).'},\r\n {q:'For an IT-project change request during the contract, the value should generally be within \\u2014', opts:['\\u00b15%','\\u00b110%','\\u00b115%','\\u00b125%'], a:2, fb:'IT-project change requests should generally be within plus\/minus 15%, decided through a Change Control Board whose technical and financial decisions are final.'},\r\n {q:'Where an arbitral award is challenged by the Ministry, the amount payable to the contractor against a Bank Guarantee is \\u2014', opts:['50% of the award','75% of the award','90% of the award','100% of the award'], a:1, fb:'Under Rule 227A, 75% of the arbitral award is paid against a Bank Guarantee into a designated escrow account, used first for lenders\\u2019 dues and project completion.'},\r\n {q:'If a force-majeure event prevents performance for a period exceeding how long, either party may terminate the contract?', opts:['30 days','60 days','90 days','180 days'], a:2, fb:'If force majeure prevents performance for more than 90 days, either party may terminate the contract without financial repercussion; force majeure suspends, not excuses, performance.'},\r\n {q:'Under a consultancy contract, the final claim must normally be submitted within \\u2014', opts:['30 days of completion','60 days of completion','90 days of completion','One year of completion'], a:1, fb:'The contract is closed the day after the completion date; the consultant should submit the final claim within 60 days of completing the assignment.'}\r\n]);\r\nbuildQuiz('quizStage9','quizScore9','quizNext9',[\r\n {q:'For matters not covered in the chapter on non-consultancy services, the Procuring Entity should refer to the \\u2014', opts:['Consultancy services provisions','Manual for Procurement of Goods','GeM handbook only','Arbitration Act'], a:1, fb:'The chapter is self-contained; for anything uncovered, refer to the Manual of Policies and Procedures for Procurement of Goods \\u2014 not the consultancy provisions.'},\r\n {q:'The repair and annual maintenance of mechanical, electrical or ICT assets should be handled on the lines of procurement of \\u2014', opts:['Works','Goods','Consultancy','Other services only'], a:1, fb:'AMC\/installation of mechanical, electrical or ICT assets is handled as Goods; civil-asset construction\/repair is handled as Works.'},\r\n {q:'The initial period of an outsourcing contract for other services is normally fixed at \\u2014', opts:['One year','Two years','Three years','Five years'], a:1, fb:'The initial contract period is normally two years, extendable by a further one year subject to satisfactory service.'},\r\n {q:'Extension beyond the initial two-year period may not be considered where the service provider has been levied a cumulative penalty of \\u2014', opts:['2% of contract value','5% of contract value','10% of contract value','15% of contract value'], a:1, fb:'Where a cumulative penalty of 5% of total contract value has been levied, extension beyond the initial two years is not considered.'},\r\n {q:'On GeM, direct purchase in the band above Rs 25,000 and up to Rs 5,00,000 must be from the lowest-priced seller of at least \\u2014', opts:['Two different manufacturers','Three different manufacturers','Five different manufacturers','Any single manufacturer'], a:1, fb:'In this band the buyer purchases from the GeM seller with the lowest price among at least three different manufacturers meeting requirements.'},\r\n {q:'The direct-purchase ceiling on GeM for automobiles is \\u2014', opts:['Rs 25,000','Rs 5 lakh','Rs 30 lakh','Rs 50 lakh'], a:2, fb:'For automobiles only, the direct-purchase ceiling is Rs 30 lakh instead of Rs 25,000.'},\r\n {q:'On GeM, if the consignee does not acknowledge receipt, a Deemed Provisional Receipt Certificate is auto-generated after \\u2014', opts:['48 hours','72 hours','96 hours','10 days'], a:2, fb:'The consignee should issue a PRC within 48 hours; if not acknowledged, a Deemed PRC auto-generates after 96 hours from delivery.'},\r\n {q:'In procurement of other (non-consultancy) services, the normal system of selection among technically responsive offers is \\u2014', opts:['QCBS','Lowest price (L-1)','LCS with 75% benchmark','Single Source Selection'], a:1, fb:'Under Rule 204, selection is normally on lowest price (L-1) among technically responsive offers, akin to procurement of Goods\/Works; SSS is used only in special circumstances.'}\r\n]);\r\n<\/script>\r\n\r\n<\/body>\r\n<\/html>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Manual for Procurement of Consultancy & Other Services \u2014 Study Notes (Ch 1\u20133) Manual for Procurement of Consultancy & Other 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}\r\n .note-list.red > li { border-left-color:var(--red); } .note-list.red > li .nl-tag { background:var(--red); }\r\n .note-list.teal > li { border-left-color:var(--teal); } .note-list.teal > li .nl-tag { background:var(--teal); }\r\n .note-list.purple > li { border-left-color:var(--purple); } .note-list.purple > li .nl-tag { background:var(--purple); }\r\n .note-list.gold > li { border-left-color:var(--gold); } .note-list.gold > li .nl-tag { background:#a8810f; }\r\n .note-list.slate > li { border-left-color:var(--slate); } .note-list.slate > li .nl-tag { background:var(--slate); }\r\n\r\n @media (max-width:880px) {\r\n .layout { grid-template-columns:1fr; gap:32px; padding:28px 24px 64px; }\r\n .sidebar { position:static; }\r\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr 1fr; }\r\n .hero { padding:48px 24px 44px; }\r\n .breadcrumb-bar, .scope-banner { padding:10px 24px; }\r\n .hero-grid { grid-template-columns:1fr; gap:24px; }\r\n .hero-illustration { width:250px; margin:0 auto; }\r\n }\r\n @media (max-width:520px) {\r\n .hero h1 { font-size:24px; }\r\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr; }\r\n .quiz-opts { grid-template-columns:1fr 1fr; }\r\n .hero-illustration { display:none; }\r\n }\r\n<\/style>\r\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\r\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin>\r\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Crimson+Pro:wght@400;600;700&family=DM+Sans:wght@400;500;700&family=JetBrains+Mono:wght@400;700&display=swap\" rel=\"stylesheet\">\r\n<\/head>\r\n<body>\r\n\r\n\r\n<div class=\"hero\">\r\n <div class=\"hero-inner hero-grid\">\r\n <div class=\"hero-text\">\r\n \r\n <h1>Manual for Procurement of Consultancy & Other Services<\/h1>\r\n <p class=\"hero-sub\">The Government of India's procedural rule-book for hiring <strong>consultants<\/strong> and outsourcing <strong>other (non-consultancy) services<\/strong>. Built as a portal to the GFR 2017, DFPR and CVC guidelines \u2014 it fixes the definitions, the principles, the preference policies (MSE & Make-in-India), the governance code, and the contract & selection methods. These notes cover <strong>Chapters 1\u20133<\/strong>: the framework, the players & governance, and the contract types & systems of selection.<\/p>\r\n \r\n <\/div>\r\n <div class=\"hero-illustration\" aria-hidden=\"true\">\r\n <svg viewBox=\"0 0 340 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"A signed contract document with a pen, a handshake and a rupee coin\">\r\n <ellipse cx=\"170\" cy=\"262\" rx=\"130\" ry=\"12\" fill=\"rgba(0,0,0,0.18)\"\/>\r\n \r\n <rect x=\"78\" y=\"34\" width=\"150\" height=\"186\" rx=\"8\" fill=\"#f7fbff\" stroke=\"#10243f\" stroke-width=\"3\"\/>\r\n <rect x=\"78\" y=\"34\" width=\"150\" height=\"34\" rx=\"8\" fill=\"#13507f\"\/>\r\n <rect x=\"78\" y=\"58\" width=\"150\" height=\"10\" fill=\"#13507f\"\/>\r\n <text x=\"153\" y=\"56\" font-family=\"Georgia,serif\" font-size=\"13\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#ffd95a\">R f P<\/text>\r\n <g stroke=\"#9dc3ec\" stroke-width=\"3\" stroke-linecap=\"round\">\r\n <line x1=\"96\" y1=\"86\" x2=\"210\" y2=\"86\"\/>\r\n <line x1=\"96\" y1=\"102\" x2=\"210\" y2=\"102\"\/>\r\n <line x1=\"96\" y1=\"118\" x2=\"186\" y2=\"118\"\/>\r\n <line x1=\"96\" y1=\"142\" x2=\"210\" y2=\"142\"\/>\r\n <line x1=\"96\" y1=\"158\" x2=\"194\" y2=\"158\"\/>\r\n <\/g>\r\n \r\n <line x1=\"96\" y1=\"192\" x2=\"170\" y2=\"192\" stroke=\"#41617f\" stroke-width=\"2\"\/>\r\n <path d=\"M100 188 q8 -10 16 0 t16 0 t14 -2\" fill=\"none\" stroke=\"#1c5da6\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/>\r\n \r\n <g transform=\"rotate(38 196 196)\">\r\n <rect x=\"188\" y=\"150\" width=\"14\" height=\"64\" rx=\"3\" fill=\"#c97c10\" stroke=\"#8a5a10\" stroke-width=\"2\"\/>\r\n <path d=\"M188 214 L195 230 L202 214 Z\" fill=\"#10243f\"\/>\r\n <rect x=\"188\" y=\"150\" width=\"14\" height=\"12\" fill=\"#0e8f7a\"\/>\r\n <\/g>\r\n \r\n <circle cx=\"92\" cy=\"208\" r=\"30\" fill=\"#0e8f7a\" stroke=\"#0a6354\" stroke-width=\"3\"\/>\r\n <path d=\"M78 208 l9 -7 8 5 8 -6 9 7\" fill=\"none\" stroke=\"#fff\" stroke-width=\"3\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n <path d=\"M78 208 l9 8 M113 208 l-9 8\" stroke=\"#fff\" stroke-width=\"3\" stroke-linecap=\"round\"\/>\r\n \r\n <circle cx=\"236\" cy=\"56\" r=\"26\" fill=\"#c89b0a\" stroke=\"#8a6a00\" stroke-width=\"3\"\/>\r\n <text x=\"236\" y=\"66\" font-family=\"Georgia,serif\" font-size=\"28\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#fffaf0\">₹<\/text>\r\n \r\n <circle cx=\"250\" cy=\"170\" r=\"22\" fill=\"#1c5da6\" stroke=\"#13456f\" stroke-width=\"3\"\/>\r\n <path d=\"M240 170 l7 8 13 -16\" fill=\"none\" stroke=\"#fff\" stroke-width=\"4\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n <\/svg>\r\n <\/div>\r\n <\/div>\r\n<\/div>\r\n\r\n\r\n<div class=\"scope-banner\">\r\n <div class=\"scope-inner\">\r\n <span>▶<\/span>\r\n <span><strong>These Notes covers the complete manual \u2014 Chapters 1\u20139.<\/strong> Introduction · Consultants & Governance · Contracts & Systems of Selection · Preparing for Procurement · Shortlisting Stage · Selection by Competitive Process · Special Types of Engagements · Monitoring Contracts · Procurement (Outsourcing) of Other (Non-consultancy) Services.<\/span>\r\n <\/div>\r\n<\/div>\r\n\r\n\r\n<div class=\"breadcrumb-bar\">\r\n <div class=\"breadcrumb-inner\">\r\n <a href=\"#\">Home<\/a>\r\n <span class=\"sep\">›<\/span>\r\n <a href=\"#\">Notes<\/a>\r\n <span class=\"sep\">›<\/span>\r\n <span>Manual for Procurement of Consultancy & Other Services<\/span>\r\n <\/div>\r\n<\/div>\r\n\r\n<div class=\"layout\">\r\n <aside class=\"sidebar\">\r\n <div class=\"toc-card\">\r\n <div class=\"toc-card-title\">Table of Contents<\/div>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"1\" open>\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 1<\/span>\r\n <span class=\"toc-ch-title\">Introduction to Procurement<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">1.1<\/span><a href=\"#c1-11\">Rules, Regulations & this Manual<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.3<\/span><a href=\"#c1-13\">Applicability & Definitions<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.4<\/span><a href=\"#c1-14\">Competent Authorities & Powers<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.5<\/span><a href=\"#c1-15\">Five R's of Procurement<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.6<\/span><a href=\"#c1-16\">Principles of Public Procurement<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.7<\/span><a href=\"#c1-17\">Canons of Financial Propriety<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.8<\/span><a href=\"#c1-18\">Procurement Infrastructure<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.9<\/span><a href=\"#c1-19\">Preferential \/ Mandatory Purchase<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.10<\/span><a href=\"#c1-110\">When Procurement is Justified<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.12<\/span><a href=\"#c1-112\">Law of Agency & RTI Disclosure<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">1.14<\/span><a href=\"#c1-114\">Cycle & Concept Paper<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c1-recap\">Chapter 1 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"2\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 2<\/span>\r\n <span class=\"toc-ch-title\">Consultants & Governance<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">2.1<\/span><a href=\"#c2-21\">Types of Consultants \/ Providers<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2<\/span><a href=\"#c2-22\">Code of Integrity (CIPP)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2.3<\/span><a href=\"#c2-22c\">Conflict of Interest<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2.6<\/span><a href=\"#c2-22p\">Punitive Provisions<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.2.7<\/span><a href=\"#c2-22r\">Conduct Risks & Mitigations<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.3<\/span><a href=\"#c2-23\">Integrity Pact & IEMs<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">2.4<\/span><a href=\"#c2-24\">Debarment of Firms<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c2-recap\">Chapter 2 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"3\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 3<\/span>\r\n <span class=\"toc-ch-title\">Contracts & Selection<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">3.1<\/span><a href=\"#c3-31\">Types of Contracts<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.2<\/span><a href=\"#c3-32\">Lump Sum (Firm Fixed Price)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.3<\/span><a href=\"#c3-33\">Time-Based (Retainer-ship)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.4<\/span><a href=\"#c3-34\">Percentage & Retainer-cum-Fee<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.6<\/span><a href=\"#c3-36\">Indefinite Delivery<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.7<\/span><a href=\"#c3-37\">Systems of Selection<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.8<\/span><a href=\"#c3-38\">Least Cost Selection (LCS)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.9<\/span><a href=\"#c3-39\">Quality & Cost Based (QCBS)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.10<\/span><a href=\"#c3-310\">Single Source Selection (SSS)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">3.11<\/span><a href=\"#c3-311\">Fixed Budget Selection (FBS)<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c3-recap\">Chapter 3 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"4\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 4<\/span>\r\n <span class=\"toc-ch-title\">Preparing for Procurement<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">4.1<\/span><a href=\"#c4-tor\">Terms of Reference (ToR)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.1.3<\/span><a href=\"#c4-reports\">Deliverables & Reports<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.2<\/span><a href=\"#c4-cost\">Costs, Budget & Approval<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.3<\/span><a href=\"#c4-final\">Finalising & Approving the ToR<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.4<\/span><a href=\"#c4-plan\">Procurement Plan<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">4.5<\/span><a href=\"#c4-eproc\">e-Procurement<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c4-recap\">Chapter 4 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"5\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 5<\/span>\r\n <span class=\"toc-ch-title\">Shortlisting Stage<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">5.1<\/span><a href=\"#c5-eoi\">EoI & the Two-Stage Process<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.1.3<\/span><a href=\"#c5-thresh\">Advertised EoI & Thresholds<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.1.4<\/span><a href=\"#c5-gte\">Global Tender Enquiry<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.1.9<\/span><a href=\"#c5-below\">Below \u20b925 Lakh & Empanelment<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.2<\/span><a href=\"#c5-shortlist\">Short List & Weightages<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">5.3<\/span><a href=\"#c5-risks\">Risks & Mitigation<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c5-recap\">Chapter 5 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"6\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 6<\/span>\r\n <span class=\"toc-ch-title\">Selection by Competitive Process<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">6.1<\/span><a href=\"#c6-steps\">The Evaluation Process<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.2<\/span><a href=\"#c6-rfp\">Request for Proposals (RfP)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.2.6<\/span><a href=\"#c6-provisions\">PVC, Advances & Securities<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.3<\/span><a href=\"#c6-pre\">Pre-proposal Meeting & Receipt<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.5<\/span><a href=\"#c6-cec\">Consultancy Evaluation Committee<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.6<\/span><a href=\"#c6-resp\">Responsiveness & Technical Eval<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.8<\/span><a href=\"#c6-cost\">Evaluation of Cost<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.9<\/span><a href=\"#c6-winner\">Selecting the Winner<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">6.10<\/span><a href=\"#c6-award\">Negotiations & Award<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c6-recap\">Chapter 6 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"7\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 7<\/span>\r\n <span class=\"toc-ch-title\">Special Types of Engagements<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">7.1<\/span><a href=\"#c7-sss\">Single Source Selection<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.2<\/span><a href=\"#c7-individual\">Individual Consultants<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.3<\/span><a href=\"#c7-agencies\">Agencies, Institutions & NGOs<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.5<\/span><a href=\"#c7-pa\">Procurement & Inspection Agents<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.7<\/span><a href=\"#c7-fin\">Financial Advisors & Auditors<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">7.9<\/span><a href=\"#c7-logo\">Logo \/ Symbol Competitions<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c7-recap\">Chapter 7 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"8\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 8<\/span>\r\n <span class=\"toc-ch-title\">Monitoring the Contract<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">8.1<\/span><a href=\"#c8-monitor\">Monitoring & the CMC<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.6<\/span><a href=\"#c8-tlmonitor\">Time-based vs Lump-sum<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.10<\/span><a href=\"#c8-variations\">Contract Variations<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.11<\/span><a href=\"#c8-substitution\">Substitution of Key Staff<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.13<\/span><a href=\"#c8-disputes\">Disputes & Arbitration<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.14<\/span><a href=\"#c8-fm\">Force Majeure & Termination<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">8.17<\/span><a href=\"#c8-risks\">Risks & Mitigation<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c8-recap\">Chapter 8 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <details class=\"toc-chapter\" data-chapter=\"9\">\r\n <summary class=\"toc-chapter-header\">\r\n <span class=\"toc-ch-badge\">CH 9<\/span>\r\n <span class=\"toc-ch-title\">Other (Non-consultancy) Services<\/span>\r\n <span class=\"toc-ch-chev\">▶<\/span>\r\n <\/summary>\r\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\r\n <li><span class=\"toc-sub-num\">9.1<\/span><a href=\"#c9-applic\">Applicability & Classification<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.4<\/span><a href=\"#c9-period\">Contract Period & Principles<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.6<\/span><a href=\"#c9-selection\">System of Selection<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.7<\/span><a href=\"#c9-gem\">Government e-Marketplace (GeM)<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.7.7<\/span><a href=\"#c9-pay\">GeM Payment, CRAC & PRC<\/a><\/li>\r\n <li><span class=\"toc-sub-num\">9.18<\/span><a href=\"#c9-sla\">SLA & Monitoring<\/a><\/li>\r\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c9-recap\">Chapter 9 \u2014 Quick Recap<\/a><\/li>\r\n <\/ul><\/div>\r\n <\/details>\r\n\r\n <\/div>\r\n <\/aside>\r\n\r\n <main class=\"article\">\r\n \r\n <section class=\"chapter-pane active\" id=\"pane-ch1\" data-chapter=\"1\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c1-11\">\r\n <span class=\"chapter-badge\">CH 1 \u00b7 INTRODUCTION<\/span>\r\n <h2>Introduction to Procurement of Consultancy \/ Other Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">What this Manual is<\/div>\r\n <div class=\"def-text\">\r\n The Manual is a <strong>portal<\/strong> to the framework governing public procurement of services. Ministries\/Departments have full powers to arrange procurement of goods and services <strong>not available on GeM<\/strong>, exercised under the <strong>Delegation of Financial Power Rules (DFPR)<\/strong> and the Procurement Guidelines. Common-use goods and services that <em>are<\/em> on GeM must be procured through GeM (<strong>Rule 149, GFR 2017<\/strong>).\r\n <\/div>\r\n <\/div>\r\n\r\n <p>It does not stand alone \u2014 comprehensive rules sit in <strong>GFR 2017 (especially Chapter 6)<\/strong>, the DFPR, purchase-preference orders, and CVC guidelines. There is <strong>no single law exclusively governing public procurement<\/strong>; for revision and clarification of this Manual the nodal authority is the <strong>Procurement Policy Division (PPD), Department of Expenditure, Ministry of Finance<\/strong>.<\/p>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">The statutory framework<\/div>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">CONST<\/span><span class=\"nl-text\">At the apex sits <strong>Article 299 of the Constitution<\/strong> \u2014 Government contracts must be in writing and executed by specifically authorised officers. <strong>Article 19(1)(g)<\/strong> (right to a profession) also has implications for procurement.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1872<\/span><span class=\"nl-text\"><strong>Indian Contract Act, 1872<\/strong> \u2014 the general law of contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1996<\/span><span class=\"nl-text\"><strong>Arbitration & Conciliation Act, 1996.<\/strong><\/span><\/li>\r\n <li><span class=\"nl-tag\">2002<\/span><span class=\"nl-text\"><strong>Competition Act, 2002.<\/strong><\/span><\/li>\r\n <li><span class=\"nl-tag\">2000<\/span><span class=\"nl-text\"><strong>Information Technology Act, 2000.<\/strong><\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-13\">\r\n <span class=\"section-badge teal\">\u00a7 1.3<\/span>\r\n <h3>Applicability & key definitions<\/h3>\r\n <\/div>\r\n\r\n <p>\"Services\" are defined <em>by exception<\/em>: any subject of procurement other than goods or works (except those incidental to the service). The generic word <strong>\"Services\"<\/strong> means Consultancy <em>and<\/em> Other services together; it excludes appointment of an individual under any law. The guidelines do <strong>not<\/strong> apply to World Bank \/ international-agency-funded projects (covered under <strong>Rule 264, GFR 2017<\/strong>).<\/p>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">Rule 177, GFR 2017<\/div>\r\n <div class=\"cat-title\">Consultancy Services<\/div>\r\n <p>Primarily <strong>non-physical, project-specific, intellectual & procedural<\/strong> processes where deliverables vary by consultant \u2014 management\/policy\/communications consulting, feasibility studies, project management, engineering, finance & taxation, training. <strong>Excludes direct engagement of a retired Government servant.<\/strong><\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">Defined by exclusion<\/div>\r\n <div class=\"cat-title\">Other (Non-consultancy) Services<\/div>\r\n <p>Anything not classifiable as consultancy \u2014 routine, repetitive <strong>physical\/procedural<\/strong> work with tangible standards: transport, logistics, clearing & forwarding, courier, upkeep of buildings\/estates, drilling, aerial photography, satellite imagery, mapping.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">IT Projects \u2192 treated as Consultancy<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Bespoke software development.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Cloud-based services.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Composite IT system integration \u2014 design, development, deployment, commissioning, hardware supply, software, bandwidth and post-go-live operation\/maintenance.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Classification \u2014 Service vs Works vs Goods<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">1.3.4<\/span><span class=\"nl-text\"><strong>Outsourcing<\/strong> = deploying outside agencies on a sustained, long-term basis (<strong>one year or more<\/strong>) for services traditionally done in-house \u2014 security, horticulture, catering, housekeeping, messenger services.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1.3.5<\/span><span class=\"nl-text\">Construction\/repair of <strong>civil assets<\/strong> \u2192 handle as <strong>Works<\/strong>; repair\/AMC\/installation of <strong>mechanical, electrical or ICT assets<\/strong> \u2192 handle as <strong>Goods<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1.3.6<\/span><span class=\"nl-text\">When intellectual\/advisory content <strong>dominates<\/strong> (physical part incidental) \u2192 treat the whole task as <strong>consultancy<\/strong> (e.g. underwater dam-safety inspection where analysis is the crux).<\/span><\/li>\r\n <li><span class=\"nl-tag\">1.3.8<\/span><span class=\"nl-text\">Procuring Entities include Ministries\/Departments, <strong>CPSEs<\/strong>, and bodies substantially owned\/controlled or substantially financed by the Central Government \u2014 but <strong>not<\/strong> procurement for own use from subsidiaries\/JVs in which a controlling share is held.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-14\">\r\n <span class=\"section-badge slate\">\u00a7 1.4<\/span>\r\n <h3>Competent authorities & purchase powers<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Sanction & SoPP \u2014 Rule 145, GFR 2017<\/div>\r\n <p>An authority competent to incur expenditure may sanction procurement of services under the <strong>DFPR<\/strong> (Annexure 2A). <strong>No separate sanction<\/strong> is needed for services distinctly named in an already sanctioned\/approved work or project. Each entity may issue a <strong>Schedule of Procurement Powers (SoPP)<\/strong> adding detail to DFPR delegations based on risk at each stage.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-15\">\r\n <span class=\"section-badge teal\">\u00a7 1.5<\/span>\r\n <h3>Basic aims \u2014 the Five R's of Procurement<\/h3>\r\n <\/div>\r\n\r\n <p>\"Right\" here means <strong>optimal<\/strong>. Every procurement seeks the right balance of cost and requirement across five parameters (framed for goods, but equally applicable to services):<\/p>\r\n\r\n <div class=\"cat-grid four\">\r\n <div class=\"cat-card a\"><div class=\"cat-badge\">R1<\/div><div class=\"cat-title\">Right Quality<\/div><\/div>\r\n <div class=\"cat-card b\"><div class=\"cat-badge\">R2<\/div><div class=\"cat-title\">Right Quantity<\/div><\/div>\r\n <div class=\"cat-card c\"><div class=\"cat-badge\">R3<\/div><div class=\"cat-title\">Right Price<\/div><\/div>\r\n <div class=\"cat-card d\"><div class=\"cat-badge\">R4<\/div><div class=\"cat-title\">Right Time & Place<\/div><\/div>\r\n <div class=\"cat-card e\"><div class=\"cat-badge\">R5<\/div><div class=\"cat-title\">Right Source<\/div><\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-16\">\r\n <span class=\"section-badge purple\">\u00a7 1.6<\/span>\r\n <h3>Five principles of public procurement<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Transparency<\/strong> principle.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Professionalism<\/strong> principle.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Broader obligations<\/strong> principle (includes registration rules for bidders from countries sharing a land border with India).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Extrinsic legal<\/strong> principle.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Public accountability<\/strong> principle.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-17\">\r\n <span class=\"section-badge amber\">\u00a7 1.7<\/span>\r\n <h3>Standards (Canons) of Financial Propriety \u2014 Rule 21, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Rule 21, GFR 2017<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Exercise the same vigilance over public money as a person of <strong>ordinary prudence<\/strong> over their own.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Expenditure should not <em>prima facie<\/em> exceed what the occasion demands.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">No authority should sanction expenditure to its own direct\/indirect advantage.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Public money is not spent for a particular person\/section unless a claim is enforceable in a Court of Law <em>or<\/em> it follows recognised policy\/custom.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Allowances must not become, on the whole, a <strong>source of profit<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\">An authority giving financial concurrence must not later be drawn into roles creating a <strong>conflict of interest<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-18\">\r\n <span class=\"section-badge slate\">\u00a7 1.8<\/span>\r\n <h3>Public procurement infrastructure at the Centre<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">1.8.1<\/div>\r\n <div class=\"cat-title\">Procurement Policy Division (PPD)<\/div>\r\n <p>In the <strong>Department of Expenditure, MoF<\/strong> \u2014 promotes uniformity\/harmonisation, best practices, guidance, oversight, capacity building, issues manuals. <strong>Not<\/strong> meant to centralise procurement.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">1.8.2<\/div>\r\n <div class=\"cat-title\">Central Public Procurement Portal (CPPP)<\/div>\r\n <p>Designed, developed & hosted by <strong>NIC (MeitY)<\/strong> with DoE; has <strong>e-publishing<\/strong> & <strong>e-procurement<\/strong> modules. <strong>Mandatory<\/strong> for all Central Ministries\/Departments, CPSEs and Autonomous\/Statutory bodies to publish all tender enquiries & resulting contracts (<strong>Rule 159, GFR 2017<\/strong>). End-to-end e-procurement is mandatory.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-19\">\r\n <span class=\"section-badge blue\">\u00a7 1.9<\/span>\r\n <h3>Preferential \/ Mandatory purchase from certain sources<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Before applying any preference<\/div>\r\n <p>Check the latest directives first. The purchase-preference provision must always be part of the <strong>Notice Inviting Tender (NIT)<\/strong> and <strong>Instructions to Bidders (ITB)<\/strong>.<\/p>\r\n <\/div>\r\n\r\n <h4>A \u00b7 Policy for Micro & Small Enterprises (MSEs) \u2014 Rule 153(ii), GFR<\/h4>\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">MSE Public Procurement Policy, 2012 (amended 2018 & 2021)<\/div>\r\n <p>Notified under <strong>Section 11 of the MSMED Act, 2006<\/strong>. Applies to <strong>all<\/strong> Central Ministries\/Departments\/CPSUs irrespective of value\/nature (not to State Govt). Only MSEs under <strong>Udyam Registration<\/strong> are eligible.<\/p>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">FREE<\/span><span class=\"nl-text\">MSEs get tender documents <strong>free<\/strong> and <strong>EMD exemption<\/strong>; prior turnover\/experience criteria may be relaxed (quality\/technical specs cannot be diluted). <strong>Performance Bank Guarantee exemption is NOT covered.<\/strong><\/span><\/li>\r\n <li><span class=\"nl-tag\">PAY<\/span><span class=\"nl-text\">Payment to an MSE supplier must not exceed <strong>45 days<\/strong> after supply (MSMED Act Ch. V); delay attracts <strong>compound interest at 3\u00d7 the RBI bank rate<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">L1+15<\/span><span class=\"nl-text\">An MSE quoting within the <strong>L1 + 15%<\/strong> band may supply up to <strong>25%<\/strong> of tendered value by matching L1 (where L1 is a non-MSE); the 25% is shared proportionately.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SC\/ST<\/span><span class=\"nl-text\">Within that 25%, a <strong>4% purchase preference<\/strong> [i.e. 16% of 25%] is reserved for <strong>SC\/ST-owned<\/strong> MSEs and <strong>3%<\/strong> for women entrepreneurs; if unfilled, met from other MSEs.<\/span><\/li>\r\n <li><span class=\"nl-tag\">OWN<\/span><span class=\"nl-text\">\"SC\/ST-owned\": proprietor is SC\/ST; or SC\/ST partners hold \u2265 <strong>51%<\/strong>; or SC\/ST promoters hold \u2265 <strong>51%<\/strong> in a private limited company.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SPLIT<\/span><span class=\"nl-text\">If the item cannot be split, an MSE within the <strong>L1+15%<\/strong> band may be awarded the full tendered value.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Startup relaxation \u2014 Rule 173(i), GFR<\/div>\r\n <p>Prior turnover & experience may be relaxed for <strong>DPIIT-recognised Startups<\/strong> (specs intact). A start-up is an entity:<\/p>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">a<\/span><span class=\"nl-text\">Up to <strong>10 years<\/strong> from incorporation\/registration.<\/span><\/li>\r\n <li><span class=\"nl-tag\">b<\/span><span class=\"nl-text\">Turnover in any financial year has <strong>not exceeded \u20b9100 crore<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">c<\/span><span class=\"nl-text\">Working towards innovation\/improvement or a scalable, high-employment model.<\/span><\/li>\r\n <li><span class=\"nl-tag\">d<\/span><span class=\"nl-text\">Must be <strong>recognised by DPIIT<\/strong> to claim benefits.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">MSE policy \u2014 institutional machinery & limits<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">EXCL<\/span><span class=\"nl-text\">Covers only goods produced \/ services rendered by MSEs; <strong>traders, distributors, sole agents and works contracts are excluded<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DEF<\/span><span class=\"nl-text\"><strong>Exemption:<\/strong> defence armament imports are excluded from the 20% goal for M\/o Defence; weapon systems\/missiles stay out of the reservation policy.<\/span><\/li>\r\n <li><span class=\"nl-tag\">RC<\/span><span class=\"nl-text\"><strong>Review Committee<\/strong> chaired by Secretary, M\/o MSME reviews the list of <strong>358 items<\/strong> reserved for exclusive MSE purchase and exemption requests from the 25% target.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PORTAL<\/span><span class=\"nl-text\"><strong>MSME Sambandh<\/strong> (8 Dec 2017) tracks CPSU procurement; <strong>CHAMPION<\/strong> portal redresses grievances; NSIC runs the <strong>SPRS<\/strong> and a <strong>National SC\/ST Hub<\/strong> (Oct 2016).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <h4>B \u00b7 Preference to Make in India \u2014 Rule 153(iii), GFR \/ PPP-MII Order 2017<\/h4>\r\n <p>Issued by <strong>DPIIT<\/strong>; applies to goods, works <em>and<\/em> services. <strong>L1<\/strong> = lowest bid adjudged in evaluation; <strong>margin of purchase preference = 20%<\/strong>; works includes <strong>EPC<\/strong> contracts; services includes <strong>System Integrator (SI)<\/strong> contracts.<\/p>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:30%\"><col style=\"width:24%\"><col style=\"width:46%\"><\/colgroup>\r\n <thead><tr><th>Supplier class<\/th><th>Min. local content<\/th><th>Eligibility<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Class-I local supplier<\/td><td class=\"code-cell\">\u2265 50%<\/td><td>Eligible for purchase preference; sole eligible class where the Nodal Ministry notifies sufficient local capacity\/competition.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Class-II local supplier<\/td><td class=\"code-cell\">\u2265 20%<\/td><td>May bid but gets <strong>no<\/strong> purchase preference.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Non-local supplier<\/td><td class=\"code-cell\">< 20%<\/td><td>Eligible only when a <strong>Global Tender Enquiry<\/strong> is issued.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Purchase preference mechanics & thresholds<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">DIV<\/span><span class=\"nl-text\"><strong>Divisible<\/strong> goods\/works: if L1 is not Class-I, <strong>50%<\/strong> goes to L1, and the lowest Class-I within the 20% margin is invited to match L1 for the remaining 50%.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NON-DIV<\/span><span class=\"nl-text\"><strong>Non-divisible<\/strong> items & price-only services: the lowest Class-I within the margin is invited to match L1; if none match, award may go to L1.<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b95 lakh<\/span><span class=\"nl-text\">Procurements with estimated value <strong>below \u20b95 lakh are exempt<\/strong> (no splitting to evade it).<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b9200 cr<\/span><span class=\"nl-text\">For purchases <strong>under \u20b9200 crore<\/strong> a Global Tender Enquiry is generally not issued without competent-authority approval (Rule 161(iv)).<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b910 cr<\/span><span class=\"nl-text\">Local content is <strong>self-certified<\/strong>; <strong>above \u20b910 crore<\/strong>, a statutory\/cost-auditor or practising CA\/cost-accountant certificate is required.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FALSE<\/span><span class=\"nl-text\">False declarations breach the Code of Integrity [Rule 175(1)(i)(h)] \u2192 debarment up to <strong>2 years<\/strong> [Rule 151(iii)].<\/span><\/li>\r\n <li><span class=\"nl-tag\">EXEMPT<\/span><span class=\"nl-text\">The administrative Department, with its <strong>Minister-in-charge's<\/strong> approval and reasons recorded, may reduce min. local content, reduce the margin below 20%, or exempt an item\/entity. A <strong>Standing Committee<\/strong> chaired by Secretary DPIIT oversees the Order.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-110\">\r\n <span class=\"section-badge blue\">\u00a7 1.10\u20131.11<\/span>\r\n <h3>When is procurement of services justified?<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Consultancy \u2014 Rules 178 & 180, GFR (prior CA approval required)<\/div>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Inadequate in-house capability\/capacity.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Need for a qualified consultant for specialised, high-quality service.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Need for <strong>impartial advice<\/strong> free of conflicts of interest.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Transfer of knowledge \/ training \/ capacity-building as a by-product.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Acquiring information \/ new methods & systems.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\">Planning & implementing organisational change.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vii<\/span><span class=\"nl-text\">Economy, speed & efficiency vs. extra commitment of staff, resources, money & time.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Two-stage rule (1.11)<\/div>\r\n <p>Consultancy is best procured by <strong>unrestricted competition among shortlisted firms<\/strong> in a <strong>two-stage process<\/strong> (quality, then cost). Other services use a simpler process like that for Goods\/Works (Chapter 9). Engagements must be <strong>economical & efficient<\/strong> (Rule 182), with transparency & integrity (Rule 179).<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-112\">\r\n <span class=\"section-badge purple\">\u00a7 1.12\u20131.13<\/span>\r\n <h3>Law of Agency & proactive (RTI) disclosure<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"icon-list\">\r\n <li><span class=\"ico\">⚖️<\/span><span><strong>Law of Agency:<\/strong> a consultant\/service provider acts as an <strong>Agent<\/strong> of the Procuring Entity (Principal), governed by <strong>Sections 182\u2013238 of the Indian Contract Act, 1872<\/strong>. The Procuring Entity is <strong>vicariously liable<\/strong> for its agents' actions (e.g. labour-law violations by deputed staff); Standard Bidding Documents must address this.<\/span><\/li>\r\n <li><span class=\"ico\">📄<\/span><span><strong>RTI proactive disclosure:<\/strong> <strong>Section 4(1)(b)<\/strong> mandates suo-motu disclosure; <strong>Sections 4(2) & 4(3)<\/strong> prescribe dissemination. Procurement notices\/tender enquiries, corrigenda, and bid-award details (vendor name, rate, total) must be disclosed under Section 4.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"section-heading-block\" id=\"c1-114\">\r\n <span class=\"section-badge gold\">\u00a7 1.14\u20131.15<\/span>\r\n <h3>Procurement cycle & the Concept Paper<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Prepare <strong>Concept Paper \/ Procurement Proposal<\/strong> and obtain in-principle approval.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Prepare <strong>ToR<\/strong> (consultancy) \/ <strong>Activity Schedule<\/strong> (other services), cost estimate; seek administrative & budgetary approval.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Shortlist consultants via <strong>EoI<\/strong> \u2014 formulate, publish, receive & evaluate.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Issue <strong>RfP<\/strong>; evaluate technical then financial proposals; select; negotiate; award.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Monitor<\/strong> the assignment.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Concept Paper \u2014 Rule 181, GFR (plays the role of an Indent for goods)<\/div>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Purpose\/Objective Statement<\/strong> \u2014 describes the subject matter; shows fit with short-term & strategic goals.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Service Outcome Statement<\/strong> \u2014 qualitative\/quantitative outcomes, time-frame, rough cost estimate (to fix the approval level under SoPP).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Justification<\/strong> \u2014 required vs in-house capability, justified per para 1.10.1.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\">In-principle administrative approval & budgetary sanction by the Competent Authority (per SoPP) must precede further stages.<\/p>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz1\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 1 Quiz \u2014 framework, definitions & preferences<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 1. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage1\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore1\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext1\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c1-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 1 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Apex statutory provision<\/td><td><strong>Article 299<\/strong>; <strong>no<\/strong> exclusive procurement law<\/td><\/tr>\r\n <tr><td>Mandatory GeM purchase<\/td><td><strong>Rule 149, GFR 2017<\/strong><\/td><\/tr>\r\n <tr><td>Consultancy definition<\/td><td><strong>Rule 177<\/strong> \u2014 intellectual\/procedural; excludes <strong>retired Govt servants<\/strong><\/td><\/tr>\r\n <tr><td>Outsourcing duration<\/td><td>Sustained engagement of <strong>\u2265 1 year<\/strong><\/td><\/tr>\r\n <tr><td>Nodal authority<\/td><td><strong>PPD, Dept. of Expenditure, MoF<\/strong><\/td><\/tr>\r\n <tr><td>Five R's<\/td><td>Right <strong>quality, quantity, price, time & place, source<\/strong><\/td><\/tr>\r\n <tr><td>Canons of propriety<\/td><td><strong>Rule 21, GFR<\/strong> \u2014 ordinary-prudence vigilance<\/td><\/tr>\r\n <tr><td>CPPP<\/td><td>Hosted by <strong>NIC (MeitY)<\/strong>; publishing mandatory \u2014 <strong>Rule 159<\/strong><\/td><\/tr>\r\n <tr><td>MSE payment limit<\/td><td><strong>45 days<\/strong>; delay \u2192 compound interest at <strong>3\u00d7 RBI bank rate<\/strong><\/td><\/tr>\r\n <tr><td>MSE price band<\/td><td><strong>L1 + 15%<\/strong> \u2192 up to <strong>25%<\/strong>; SC\/ST <strong>4%<\/strong>, women <strong>3%<\/strong><\/td><\/tr>\r\n <tr><td>Make-in-India<\/td><td>Margin <strong>20%<\/strong>; Class-I \u2265 <strong>50%<\/strong>, Class-II \u2265 <strong>20%<\/strong> local content<\/td><\/tr>\r\n <tr><td>MII thresholds<\/td><td>Exempt below <strong>\u20b95 lakh<\/strong>; auditor cert above <strong>\u20b910 cr<\/strong>; GTE rule below <strong>\u20b9200 cr<\/strong><\/td><\/tr>\r\n <tr><td>Startup<\/td><td><strong>\u2264 10 yrs<\/strong>, turnover <strong>\u2264 \u20b9100 cr<\/strong>, DPIIT-recognised (Rule 173(i))<\/td><\/tr>\r\n <tr><td>Concept Paper<\/td><td><strong>Rule 181<\/strong> \u2014 Purpose + Outcome + Justification<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch2\" data-chapter=\"2\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c2-21\">\r\n <span class=\"chapter-badge\">CH 2 \u00b7 GOVERNANCE<\/span>\r\n <h2>Consultants, Service Providers & Governance Issues<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">What this chapter covers<\/div>\r\n <div class=\"def-text\">\r\n Who the players are, the ethics they must observe (the <strong>Code of Integrity for Public Procurement<\/strong>), the <strong>Integrity Pact<\/strong> tool with its Independent External Monitors, and the rules for <strong>debarring<\/strong> errant firms under Rule 151 of the GFR 2017.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">2.1.1<\/div>\r\n <div class=\"cat-title\">Consortium \/ JV<\/div>\r\n <p>For large\/complex assignments, firms associate as a <strong>Joint Venture<\/strong> or sub-consultancy. In a JV all members sign and are <strong>jointly & severally liable<\/strong>; one becomes the <strong>lead member<\/strong> \u2014 the Procuring Entity deals only with the lead.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">2.1.2<\/div>\r\n <div class=\"cat-title\">Consultancy \/ Service Firms<\/div>\r\n <p>The main source \u2014 classed as <strong>international<\/strong> (international experience & rates) or <strong>national<\/strong> (usually domestic, lower rates).<\/p>\r\n <\/div>\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">2.1.3<\/div>\r\n <div class=\"cat-title\">Individual Consultants<\/div>\r\n <p>Used when a full team isn't needed. <strong>If more than three experts are required, a firm's team should be used.<\/strong> Not normally used for project preparation unless simple\/repeat.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">2.1.4\u20132.1.5<\/div>\r\n <div class=\"cat-title\">Specialised Agencies \/ NGOs<\/div>\r\n <p>Govt\/semi-govt agencies, universities, institutions; <strong>NGOs<\/strong> are advantageous where community participation\/local knowledge matters (e.g. CSR projects).<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">JV qualification norms (illustrative thresholds)<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">VALUE<\/span><span class=\"nl-text\">JVs may be allowed for complex\/large assignments above a value (say <strong>\u20b95 crore<\/strong>); maximum partners limited (say <strong>three<\/strong>).<\/span><\/li>\r\n <li><span class=\"nl-tag\">SHARE<\/span><span class=\"nl-text\">Each partner should meet at least <strong>25%<\/strong>, and the <strong>lead partner at least 50%<\/strong>, of the qualifying limit for experience & financial turnover.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ONE<\/span><span class=\"nl-text\"><strong>Conflicting Association:<\/strong> a firm may submit only <strong>one proposal<\/strong>; submitting\/participating in more than one \u2192 <strong>all such proposals disqualified<\/strong> (sub-consultant\/team-member in more than one only if the RfP permits).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Retired Government Servant \u2014 Rule 177, GFR<\/div>\r\n <p>Consulting services <strong>do not include<\/strong> direct engagement of retired Government servants; they cannot be engaged against regular vacant posts, only for a <strong>specific task and duration<\/strong> with clear output-related goals.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22\">\r\n <span class=\"section-badge red\">\u00a7 2.2<\/span>\r\n <h3>Code of Integrity for Public Procurement (CIPP)<\/h3>\r\n <\/div>\r\n\r\n <p>Officials and bidders\/suppliers\/consultants must sign declarations to abide by CIPP. Transgression can lead to removal from registered lists, contract cancellation, banning\/blacklisting, or action before the <strong>Competition Commission of India<\/strong>. Six prohibited practices:<\/p>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Six prohibited practices<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Corrupt practice<\/strong> \u2014 offering\/soliciting\/accepting bribes, rewards, gifts or benefits for unfair advantage.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Fraudulent practice<\/strong> \u2014 any omission\/misrepresentation to mislead for benefit or to avoid an obligation; false declarations\/information.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Anti-competitive practice<\/strong> \u2014 collusion, bid rigging, or arrangements under the Competition Act, 2002 setting artificial prices.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Coercive practice<\/strong> \u2014 harming\/threatening persons or property to influence participation or execution.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Conflict of interest<\/strong> \u2014 affiliations across bids, relationships\/transactions with officials, or misuse of information for unfair gain.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\"><strong>Obstructive practice<\/strong> \u2014 destroying\/falsifying evidence, false statements to investigators, or impeding audit\/access rights.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22c\">\r\n <span class=\"section-badge purple\">\u00a7 2.2.3\u20132.2.5<\/span>\r\n <h3>Conflict of interest & proactive disclosure<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Disqualifying situations for a consultant<\/div>\r\n <p>A consultant must give <strong>professional, objective, impartial<\/strong> advice, hold the client's interest paramount, and <strong>disclose<\/strong> any conflict (failure \u2192 disqualification\/termination). Unless the RfP data sheet says otherwise, a consultant must <strong>not<\/strong> be hired where there is:<\/p>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">a<\/span><span class=\"nl-text\"><strong>Conflicting activities<\/strong> \u2014 a firm (or affiliate) providing goods\/works\/non-consultancy for a project is barred from related consultancy, and vice-versa.<\/span><\/li>\r\n <li><span class=\"nl-tag\">b<\/span><span class=\"nl-text\"><strong>Conflicting assignments<\/strong> \u2014 an assignment that by nature conflicts with another of the consultant.<\/span><\/li>\r\n <li><span class=\"nl-tag\">c<\/span><span class=\"nl-text\"><strong>Conflicting relationships<\/strong> \u2014 close business\/family ties with Procuring-Entity staff involved in ToR preparation, selection or supervision, unless resolved acceptably.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\"><strong>Unfair Competitive Advantage<\/strong> is avoided by issuing the RfP and all information to all shortlisted consultants <strong>simultaneously<\/strong>.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Obligations for proactive disclosure (2.2.5)<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Parties must <strong>suo-moto<\/strong> declare any conflict of interest as it arises.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">A bidder must declare any prior transgression of an integrity code, or being debarred, in the <strong>last three years<\/strong> \u2014 asked or not.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">Voluntary disclosure does <strong>not<\/strong> mean automatic disqualification; the conflict may be evaluated and mitigated.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22p\">\r\n <span class=\"section-badge red\">\u00a7 2.2.6<\/span>\r\n <h3>Punitive provisions for violating CIPP<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Graded measures<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">BID<\/span><span class=\"nl-text\"><strong>If bid under consideration:<\/strong> forfeit\/encash bid security; call off pre-contract negotiations; reject & exclude the bidder.<\/span><\/li>\r\n <li><span class=\"nl-tag\">AWARD<\/span><span class=\"nl-text\"><strong>If contract awarded:<\/strong> cancel & recover loss; forfeit other security\/bond; recover payments made <strong>with interest<\/strong> at the prevailing rate.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PLUS<\/span><span class=\"nl-text\"><strong>Additional:<\/strong> removal from registered list & banning for <strong>not less than one year<\/strong>; reference to CCI (filed by a <strong>Joint Secretary-level<\/strong> officer) for anti-competitive practices; disciplinary\/criminal proceedings.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-22r\">\r\n <span class=\"section-badge amber\">\u00a7 2.2.7<\/span>\r\n <h3>Conduct of public servants \u2014 risks & mitigations<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:26%\"><col style=\"width:74%\"><\/colgroup>\r\n <thead><tr><th>Risk area<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Hospitality<\/td><td>Never solicit, directly or indirectly. Must not involve significant travel, overnight stay or trips abroad, or publicly identify a recipient with a firm. Extra care with firms in current\/imminent tenders.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Gifts<\/td><td>Never solicit. Do not accept\/retain gifts above the conduct-rule limit. <strong>Cash, gift cheques or cash-exchangeable vouchers are never acceptable, regardless of amount.<\/strong> Inadvertent gifts \u2192 returned or deposited in the <strong>Toshakhana\/Treasury<\/strong>.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Private purchases<\/td><td>Do not seek\/accept special facilities or discounts on private purchases from suppliers\/contractors with whom there are official dealings (especially Rate-Contract holders).<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Event sponsorship<\/td><td>Never engage in non-official pecuniary transactions \u2014 no soliciting sponsorship\/donations for cultural, social, sporting, religious or charitable events from contractors\/suppliers.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-23\">\r\n <span class=\"section-badge blue\">\u00a7 2.3<\/span>\r\n <h3>Integrity Pact (IP) & Independent External Monitors<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">What the Pact does<\/div>\r\n <p>A <strong>pre-bid Integrity Pact<\/strong> binds buyer and seller to ethical conduct\/transparency from pre-selection through completion. Entering it is a <strong>preliminary qualification<\/strong> \u2014 a bid without a duly signed IP is <strong>non-responsive and rejected<\/strong>. MoF\/DoE mandated <strong>15 Ministries\/Departments<\/strong> to adopt IP above a threshold value; the threshold should cover the <strong>bulk (80\u201390%)<\/strong> of procurement expenditure, decided with the Minister-in-charge's approval.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Essential ingredients of the Pact<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">Procuring Entity promises equity & reason; no illegitimate benefit sought\/accepted.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Bidders promise no illegitimate benefit to officials; no offence under the <strong>Prevention of Corruption Act, 1988<\/strong> or <strong>IPC 1860<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">No undisclosed agreement among bidders on prices\/specs\/sub-contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Fall Clause<\/strong> \u2014 bidders have not \/ will not sell the same item below the bid price.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Foreign bidders disclose Indian agents; Indian bidders disclose foreign principals.<\/span><\/li>\r\n <li><span class=\"nl-tag\">vi<\/span><span class=\"nl-text\">Disclose payments to agents\/brokers\/intermediaries; and past transgressions over the specified period.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Independent External Monitors (IEMs)<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">NUM<\/span><span class=\"nl-text\">Up to <strong>three<\/strong> IEMs, of high integrity, below <strong>70 years<\/strong>, selected in consultation with and approved by the <strong>CVC<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WHO<\/span><span class=\"nl-text\">Officers retired from <strong>top management<\/strong> of GoI departments\/PSUs (not the same organisation); eminent persons, retired High\/Supreme Court judges and senior private-sector executives may also qualify.<\/span><\/li>\r\n <li><span class=\"nl-tag\">TERM<\/span><span class=\"nl-text\">Initial <strong>3 years<\/strong>, extendable by <strong>2 years<\/strong> \u2014 maximum tenure <strong>5 years<\/strong>. At least one IEM is named in the NIT.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ROLE<\/span><span class=\"nl-text\">Independent & neutral; access to all documents\/books on allegation; ideally meet <strong>once every two months<\/strong>; recommendations are <strong>advisory, not legally binding<\/strong>; may report serious irregularities directly to the CVC. The CVO's role is unaffected.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c2-24\">\r\n <span class=\"section-badge slate\">\u00a7 2.4<\/span>\r\n <h3>Debarment of suppliers \/ contractors \/ consultants<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Rule 151, GFR 2017 \u2014 debarment from bidding<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">A bidder is debarred if convicted under the <strong>Prevention of Corruption Act, 1988<\/strong>, or under the IPC\/any law for loss of life\/property or threat to public health during a public procurement contract.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">Such a bidder (or successor) is ineligible across <strong>any<\/strong> procuring entity for a period <strong>not exceeding 3 years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">A procuring entity may debar for breaching the Code of Integrity for a period <strong>not exceeding 2 years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">No debarment without a <strong>reasonable opportunity<\/strong> to represent.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">Type 1<\/div>\r\n <div class=\"cat-title\">Debarment by a Single Ministry<\/div>\r\n <p>Issued by the Ministry itself; period <strong>\u2264 2 years<\/strong>; applies only to that Ministry & its attached\/subordinate offices, autonomous bodies, CPSUs \u2014 <strong>not circulated<\/strong>. A <strong>JS\/Additional Secretary<\/strong> may be the competent authority. Debarment is an <strong>executive function<\/strong>, not for the Vigilance Department.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">Type 2<\/div>\r\n <div class=\"cat-title\">Debarment across All Ministries<\/div>\r\n <p>Issued by <strong>DoE, MoF<\/strong> after the proposing Ministry (with Secretary's approval) sends a self-contained note; DoE verifies conformity with <strong>Rule 151<\/strong>. The firm stays in suspension only in the proposing Ministry pending DoE's decision; DoE may also act <strong>suo-moto<\/strong>.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Key definitions & common provisions<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">ALLIED<\/span><span class=\"nl-text\">\"Allied firms\" \u2014 concerns under the debarred firm's effective influence (common management, majority interest\/shares, control). <strong>All successor firms<\/strong> are allied; debarment extends automatically to all allied firms.<\/span><\/li>\r\n <li><span class=\"nl-tag\">JV<\/span><span class=\"nl-text\">If a JV\/consortium is debarred, <strong>all partners<\/strong> stand debarred for the specified period (named in the order).<\/span><\/li>\r\n <li><span class=\"nl-tag\">MIN<\/span><span class=\"nl-text\">Ordinarily, the debarment period should be <strong>not less than six months<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">L1<\/span><span class=\"nl-text\">A debarred firm's bid is ignored; if it was L-1, the <strong>next lowest becomes L-1<\/strong> and its bid security is returned.<\/span><\/li>\r\n <li><span class=\"nl-tag\">START<\/span><span class=\"nl-text\">Period starts from the <strong>date of issue<\/strong> of the order. Contracts concluded <strong>before<\/strong> the order are unaffected. GeM may debar up to <strong>2 years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">REVOKE<\/span><span class=\"nl-text\">An order is <strong>automatically revoked<\/strong> on expiry (no formal order needed); early revocation by the competent authority if the disability already suffered is adequate.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz2\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 2 Quiz \u2014 players, integrity & debarment<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 2. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage2\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore2\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext2\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c2-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 2 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Individual vs team<\/td><td>More than <strong>3 experts<\/strong> \u2192 use a firm's team<\/td><\/tr>\r\n <tr><td>JV liability<\/td><td><strong>Jointly & severally liable<\/strong>; lead \u2265 <strong>50%<\/strong>, others \u2265 <strong>25%<\/strong> of qualifying limit<\/td><\/tr>\r\n <tr><td>One-proposal rule<\/td><td>Multiple proposals by one firm \u2192 <strong>all disqualified<\/strong><\/td><\/tr>\r\n <tr><td>CIPP prohibited practices<\/td><td><strong>6<\/strong>: corrupt, fraudulent, anti-competitive, coercive, conflict of interest, obstructive<\/td><\/tr>\r\n <tr><td>Cash gifts<\/td><td><strong>Never<\/strong> acceptable; inadvertent \u2192 <strong>Toshakhana\/Treasury<\/strong><\/td><\/tr>\r\n <tr><td>CCI referral<\/td><td>Filed by a <strong>Joint Secretary-level<\/strong> officer<\/td><\/tr>\r\n <tr><td>Integrity Pact reach<\/td><td><strong>15 Ministries<\/strong>; threshold to cover <strong>80\u201390%<\/strong> of spend<\/td><\/tr>\r\n <tr><td>IEMs<\/td><td>Max <strong>3<\/strong>, age < <strong>70<\/strong>, term <strong>3+2 = 5 yrs<\/strong>, CVC-approved, advice <strong>not binding<\/strong><\/td><\/tr>\r\n <tr><td>Debarment \u2014 conviction<\/td><td><strong>\u2264 3 years<\/strong>, all entities (Rule 151)<\/td><\/tr>\r\n <tr><td>Debarment \u2014 integrity breach<\/td><td><strong>\u2264 2 years<\/strong>, single entity; ordinarily <strong>\u2265 6 months<\/strong><\/td><\/tr>\r\n <tr><td>All-Ministry debarment<\/td><td>Issued by <strong>DoE, MoF<\/strong>; allied & successor firms auto-included<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch3\" data-chapter=\"3\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c3-31\">\r\n <span class=\"chapter-badge\">CH 3 \u00b7 CONTRACTS & SELECTION<\/span>\r\n <h2>Types of Contracts & Systems of Selection<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">What this chapter does<\/div>\r\n <div class=\"def-text\">\r\n It fixes how payment is linked to performance (<strong>contract types<\/strong>) and how the right consultant is chosen (<strong>LCS, QCBS, SSS, FBS<\/strong>). The choice of contract type should follow <strong>Value-for-Money (VfM)<\/strong>; an inappropriate type can cause poor competition, disputes and failure.\r\n <\/div>\r\n <\/div>\r\n\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Lump Sum<\/strong> (Firm Fixed Price).<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Time-Based<\/strong> (Retainer-ship).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Percentage<\/strong> (Success Fee).<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\"><strong>Retainer-ship cum Success Fee<\/strong> (combination).<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\"><strong>Indefinite Delivery<\/strong> contract.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">For other (non-consultancy) services<\/div>\r\n <p>Depending on nature: Lump-sum, Time-based, or <strong>unit\/item-rate<\/strong> contracts (e.g. taxi per km) \u2014 as in Goods\/Works \u2014 or a mix. Indefinite-delivery (time or unit-rate) suits uncertain but regular needs.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-32\">\r\n <span class=\"section-badge teal\">\u00a7 3.2<\/span>\r\n <h3>Lump Sum (Firm Fixed Price) Contract<\/h3>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">The preferred default<\/div>\r\n <div class=\"def-text\">\r\n Fixed price for a fixed scope; payments linked to clearly specified <strong>outputs\/milestones\/deliverables<\/strong>. The consultant's proposal includes all prices \u2014 <strong>no arithmetical correction or price adjustment<\/strong> during evaluation. Easy to administer. Used for simple planning\/feasibility studies, environmental studies, standard design, data-processing systems.\r\n <\/div>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Quality\/scope of output not linked to payment \u2014 temptation to cut corners; disputes over interpretation.<\/td><td>Use where quality, scope & timing are clearly defined; record acceptance; <strong>pay only against a certificate of acceptance<\/strong>.<\/td><\/tr>\r\n <tr><td>Time over-run, since time is not linked to payment.<\/td><td>Monitor output <strong>per month<\/strong> against the planned time-line.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-33\">\r\n <span class=\"section-badge amber\">\u00a7 3.3<\/span>\r\n <h3>Time-Based (Retainer-ship) Contract<\/h3>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">When scope is hard to define<\/div>\r\n <div class=\"def-text\">\r\n Payment on agreed <strong>hourly\/daily\/weekly\/monthly rates<\/strong> for staff (named in consultancy) plus reimbursables; rates include salary, social costs, overhead, fee\/profit, allowances. Used when Lump Sum isn't feasible \u2014 complex studies, construction supervision, advisory services, most training.\r\n <\/div>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Quality\/scope not linked to payment.<\/td><td>Evaluate quality\/scope; release payment only against acceptance certificates.<\/td><\/tr>\r\n <tr><td>Performance per period not linked to payment \u2014 dilatory use of paid staff.<\/td><td>Close monitoring; <strong>monthly reporting<\/strong> of payouts & work achieved to the CA.<\/td><\/tr>\r\n <tr><td>Time & cost over-run \u2014 major risk; delay benefits the consultant.<\/td><td>Include an <strong>upper limit of total payments<\/strong>; once reached or period exceeded, the <strong>CA reviews<\/strong> any extension.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-34\">\r\n <span class=\"section-badge purple\">\u00a7 3.4\u20133.5<\/span>\r\n <h3>Percentage & Retainer-cum-Success Fee Contracts<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">3.4<\/div>\r\n <div class=\"cat-title\">Percentage (Success \/ Contingency Fee)<\/div>\r\n <p>Fee tied to estimated\/actual <strong>project cost<\/strong> (or cost of goods procured\/inspected); paid after success. Selection: among technically qualified, the <strong>lowest percentage<\/strong> quoted wins. Used for architectural services, procurement & inspection agents. <strong>Risk:<\/strong> bias against economic design \u2014 so for architectural services, recommended only on a <strong>fixed target cost<\/strong> with precisely defined services.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">3.5<\/div>\r\n <div class=\"cat-title\">Retainer + Success Fee<\/div>\r\n <p>Combines a <strong>time-based retainer<\/strong> (monthly) with a <strong>percentage success fee<\/strong>. Used when banks\/financial firms prepare companies for sales\/mergers (notably privatisation) and for organisational restructuring. <strong>All risks of both Percentage and Time-Based<\/strong> apply, with the same mitigations.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-36\">\r\n <span class=\"section-badge gold\">\u00a7 3.6<\/span>\r\n <h3>Indefinite Delivery Contract (Price Agreement)<\/h3>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">\"On-call\" services<\/div>\r\n <div class=\"def-text\">\r\n For specialised services whose extent\/timing cannot be defined in advance \u2014 akin to <strong>Rate\/Framework Contracts<\/strong> for goods. No commitment on quantum; parties agree <strong>unit rates<\/strong> and payment follows actual time\/quantum used; the provider is selected on the <strong>unit rate quoted<\/strong>. Used for on-call advisers, dispute-resolution adjudicators, procurement advice, document management, taxi services, temporary manpower \u2014 usually over a year or more.\r\n <\/div>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td><strong>Over-utilisation<\/strong> \u2014 usage may exceed actual need as scrutiny is less intense.<\/td><td>Scrutinise need assessment; lay down a <strong>maximum contract value<\/strong>; CA approval to exceed it; escalate reporting above a monthly payout benchmark.<\/td><\/tr>\r\n <tr><td>Quality\/scope & per-period performance not linked to payment.<\/td><td>Pay only against acceptance certificates; close monitoring with monthly reporting.<\/td><\/tr>\r\n <tr><td>Time & cost over-run.<\/td><td>Include an <strong>upper limit of total payments<\/strong>; CA reviews extension once reached\/exceeded.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-37\">\r\n <span class=\"section-badge blue\">\u00a7 3.7<\/span>\r\n <h3>Systems of selection of service providers<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Two-stage process & shortlist size<\/div>\r\n <p>Because consultancy quality is not tangibly measurable, selection is normally a <strong>two-stage process<\/strong>: first shortlist capable sources (via <strong>EoI<\/strong> advertisement), then invite shortlisted firms to submit technical & financial proposals in separate sealed envelopes. <strong>Technical proposals are evaluated without access to the financial part<\/strong>; financial proposals open only after quality evaluation.<\/p>\r\n <\/div>\r\n\r\n <div class=\"info-row\">\r\n <div class=\"info-card\"><div class=\"ic-big\">3<\/div><div class=\"ic-cap\">Minimum shortlist size<\/div><\/div>\r\n <div class=\"info-card t-teal\"><div class=\"ic-big\">8<\/div><div class=\"ic-cap\">Maximum shortlist size<\/div><\/div>\r\n <div class=\"info-card t-amber\"><div class=\"ic-big\">2<\/div><div class=\"ic-cap\">Stages of selection<\/div><\/div>\r\n <\/div>\r\n\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\"><strong>Least Cost Selection (LCS)<\/strong> \u2014 price-based.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Quality & Cost Based Selection (QCBS)<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Single Source Selection (SSS)<\/strong> \u2014 direct.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Other services & the single-bid question<\/div>\r\n <p>Other (non-consultancy) services normally use <strong>lowest-price (L-1)<\/strong> selection (like Goods\/Works); SSS only in special cases. A <strong>single bid is not automatically invalid<\/strong> \u2014 re-bidding has costs (re-tender cost, delay, possibly higher price). A single bid is valid if: (1) the procurement was <strong>satisfactorily advertised<\/strong> with sufficient time, (2) qualification criteria were <strong>not unduly restrictive<\/strong>, and (3) <strong>prices are reasonable<\/strong> vs market values.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-38\">\r\n <span class=\"section-badge teal\">\u00a7 3.8<\/span>\r\n <h3>Least Cost Selection (LCS) \u2014 Rule 193, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">How LCS works \u2014 the default method<\/div>\r\n <p>Technical & financial proposals are submitted together. A minimum qualifying mark (benchmark <strong>normally 75 out of 100<\/strong>) is set, or a simpler <strong>pass\/fail<\/strong> criterion (e.g. \u2265 2 similar assignments; turnover \u2265 \u20b910 crore). Technical proposals open & are evaluated first; only technically responsive offers proceed and the <strong>financial bids of non-responsive bidders are returned unopened<\/strong>. Among the responsive, the <strong>L-1 offer wins on price alone<\/strong> \u2014 no weightage to technical marks.<\/p>\r\n <p style=\"margin:0;\">LCS is the <strong>simplest and quickest<\/strong> method and the <strong>default<\/strong> for standard\/routine assignments; any other method needs justification. (In the 2006 MoF Manual this was confusingly called QCBS.)<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-39\">\r\n <span class=\"section-badge purple\">\u00a7 3.9<\/span>\r\n <h3>Quality & Cost Based Selection (QCBS) \u2014 Rule 192, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">How QCBS works<\/div>\r\n <p>Benchmark for quality is <strong>normally 70\u201380 out of 100<\/strong>. Each responsive bid gets a <strong>quality score<\/strong> \/100; financial proposals of responsive bidders open (others returned unopened) and get a <strong>cost score<\/strong> (100 for the lowest, pro-rated for higher). The <strong>weighted total<\/strong> decides the winner. Typical weightage: <strong>cost 30% \/ technical 70%<\/strong> (technical should <strong>never exceed 80%<\/strong>); 40:60 or 50:50 are also used. A 100% cost weight approximates LCS. Used for <strong>highly complex, critical<\/strong> assignments. (In the 2006 Manual: \"CQCCBS\".)<\/p>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:46%\"><col style=\"width:30%\"><col style=\"width:24%\"><\/colgroup>\r\n <thead><tr><th>Assignment description<\/th><th>Remarks<\/th><th>Quality \/ Cost (%)<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Highly complex \/ downstream consequences \/ specialised<\/td><td>QCBS with higher technical weightage<\/td><td class=\"code-cell\">80 \/ 20<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Moderate complexity<\/td><td>Majority of cases fall here<\/td><td class=\"code-cell\">75\u201365 \/ 35\u201325<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Standard \/ routine (auditors, procurement agents)<\/td><td>LCS is appropriate<\/td><td class=\"code-cell\">60\u201350 \/ 40\u201350<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">QCBS \u2014 key risks<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">SEL<\/span><span class=\"nl-text\">QCBS chosen where LCS\/other would fit better \u2014 justify & apply only in the right circumstances.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WT<\/span><span class=\"nl-text\">Weightage other than <strong>70:30<\/strong> must be adequately examined & justified.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SUBJ<\/span><span class=\"nl-text\">Marking subjectivity \u2014 lay down objective marking; grade unavoidable subjectivity; have conciliation\/moderation of disparate marks.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-310\">\r\n <span class=\"section-badge red\">\u00a7 3.10<\/span>\r\n <h3>Single Source Selection (SSS) \u2014 Rule 194, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">When direct selection is permissible<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">A <strong>natural continuation<\/strong> of previous work by the firm.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\"><strong>Emergency<\/strong>\/post-disaster situations where timely completion is critical.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\"><strong>Proprietary techniques<\/strong> or only one consultant with the requisite expertise.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iv<\/span><span class=\"nl-text\">Using expertise of other <strong>PSUs\/Government organisations<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">v<\/span><span class=\"nl-text\">Special circumstances with full justification recorded in file & competent-authority approval beforehand.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\">Prices must be <strong>reasonable & consistent with market rates<\/strong> and services <strong>not split<\/strong> to avoid competition.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Reporting of nomination awards (3.10.2)<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">WHO<\/span><span class=\"nl-text\">Reported to the <strong>Secretary<\/strong> (ministries\/departments), the <strong>Board of Directors<\/strong> (PSUs\/banks\/insurers), or the <strong>Chief Executive<\/strong> where no board exists.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FREQ<\/span><span class=\"nl-text\">A report on nomination awards is submitted <strong>every quarter<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">AUDIT<\/span><span class=\"nl-text\">The audit committee may be required to check <strong>at least 10%<\/strong> of such cases.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c3-311\">\r\n <span class=\"section-badge gold\">\u00a7 3.11<\/span>\r\n <h3>Fixed Budget \u2013 based Selection (FBS)<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">FBS \u2014 budget specified in the tender<\/div>\r\n <p>Beyond QCBS, LCS and SSS, <strong>FBS<\/strong> is also allowed. The cost of consulting services is fixed as a <strong>budget stated in the tender document<\/strong>. FBS is used when:<\/p>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">i<\/span><span class=\"nl-text\">The services are <strong>simple and\/or repetitive<\/strong> and can be precisely defined.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ii<\/span><span class=\"nl-text\">The budget can be reasonably estimated from credible estimates\/previous successful selections.<\/span><\/li>\r\n <li><span class=\"nl-tag\">iii<\/span><span class=\"nl-text\">The budget is <strong>sufficient<\/strong> for the consultant to perform the assignment.<\/span><\/li>\r\n <\/ul>\r\n <p style=\"margin:0;\">Selection is by either (i) a competitive process based <strong>only on quality<\/strong> [Rule 192(i)] \u2014 the highest technical score within budget wins; or (ii) <strong>empanelment<\/strong> for repetitive assignments, then choosing on public-interest considerations (timeliness, practicability, prior assignments) with a fixed budget per assignment.<\/p>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz3\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 3 Quiz \u2014 contract types & selection methods<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 3. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage3\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore3\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext3\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c3-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 3 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Preferred contract<\/td><td><strong>Lump Sum<\/strong> \u2014 no price adjustment; pay against acceptance certificate<\/td><\/tr>\r\n <tr><td>Time-Based safeguard<\/td><td>Include an <strong>upper limit<\/strong> of total payment; CA reviews extension<\/td><\/tr>\r\n <tr><td>Percentage contract pick<\/td><td>Lowest <strong>percentage<\/strong> wins; discouraged for design (no economy incentive)<\/td><\/tr>\r\n <tr><td>Indefinite Delivery<\/td><td>Like a <strong>Rate Contract<\/strong>; selected on <strong>unit rate<\/strong>; set a max value<\/td><\/tr>\r\n <tr><td>Shortlist size<\/td><td><strong>Not fewer than 3, not more than 8<\/strong> firms<\/td><\/tr>\r\n <tr><td>LCS (Rule 193)<\/td><td><strong>Default<\/strong> method; benchmark <strong>~75\/100<\/strong>; L-1 wins on price alone<\/td><\/tr>\r\n <tr><td>QCBS (Rule 192)<\/td><td>Benchmark <strong>70\u201380\/100<\/strong>; typical weight <strong>70:30<\/strong>, technical <strong>\u2264 80%<\/strong><\/td><\/tr>\r\n <tr><td>QCBS Table 3<\/td><td>Complex <strong>80\/20<\/strong>; moderate <strong>75\u201365\/35\u201325<\/strong>; routine <strong>60\u201350\/40\u201350<\/strong><\/td><\/tr>\r\n <tr><td>SSS (Rule 194)<\/td><td>Justification + CA approval; report <strong>quarterly<\/strong>; audit \u2265 <strong>10%<\/strong><\/td><\/tr>\r\n <tr><td>FBS<\/td><td>Budget fixed in tender; <strong>simple\/repetitive<\/strong> work; highest tech score within budget<\/td><\/tr>\r\n <tr><td>Single bid<\/td><td>Valid if well-advertised, non-restrictive criteria & reasonable price<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch4\" data-chapter=\"4\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c4-tor\">\r\n <span class=\"chapter-badge\">CH 4 \u00b7 PREPARING<\/span>\r\n <h2>Preparing for Procurement of Consultancy Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Terms of Reference (ToR) \u2014 Rule 185, GFR<\/div>\r\n <div class=\"def-text\">\r\n The ToR is the consultancy equivalent of the <strong>Description, Quantity & Technical Specification<\/strong> used for goods (4.1.1). It states the purpose\/objectives, scope of work, tasks, the respective responsibilities of the Procuring Entity and consultant, expected results and deliverables. It must be <strong>comprehensive and unambiguous<\/strong> \u2014 yet <strong>not so detailed\/inflexible<\/strong> that competing consultants cannot propose their own methodology and staffing.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Describe activities, not methodology<\/div>\r\n <p>In consultancy, the Detailed Scope of Work should describe <strong>only the activities, not the approach or methodology<\/strong> (which is the consultant's task \u2014 suggestions may still be offered). Tasks are sequenced over a timeline, best shown as a <strong>bar\/Gantt chart<\/strong>. Such ToRs are <strong>activity-based<\/strong> (a single description of what the team as a whole will provide) rather than <strong>position-based<\/strong> \u2014 preferred where the team is small and flexibility is needed. <strong>Key professionals are usually named<\/strong>, and their credentials carry weightage in technical evaluation.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-reports\">\r\n <span class=\"section-badge purple\">\u00a7 4.1.3<\/span>\r\n <h3>Deliverables & the four reports<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Reporting requirements (format, frequency, content, copies, language)<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">INCEPT<\/span><span class=\"nl-text\"><strong>Inception Report<\/strong> \u2014 submitted about <strong>six weeks<\/strong> after commencement; flags ToR inconsistencies, staffing problems or deficiencies in the Entity's assistance, giving confidence the assignment can proceed as planned.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PROG<\/span><span class=\"nl-text\"><strong>Progress Reports<\/strong> \u2014 keep the Entity informed; <strong>monthly or bimonthly<\/strong> (feasibility\/design studies: <strong>two-month<\/strong> intervals; technical assistance & construction supervision: <strong>monthly<\/strong>). Time-stamped photographs are encouraged.<\/span><\/li>\r\n <li><span class=\"nl-tag\">INTERIM<\/span><span class=\"nl-text\"><strong>Interim Reports<\/strong> \u2014 for phased assignments; the Entity should take <strong>no more than 15 days<\/strong> to review & approve a draft interim report.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FINAL<\/span><span class=\"nl-text\"><strong>Final Report<\/strong> \u2014 at completion; consultants alone are responsible for findings; if they reject the Entity's comments, the reasons are noted in the report.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">The ToR template (Annexure 4) also covers<\/div>\r\n <p>Background & project context; Purpose & Service Outcomes statement; detailed scope with schedule; expected key professionals & expertise; capacity-building \/ transfer of knowledge; deliverables; background material to be provided; <strong>facilities<\/strong> (conveyance, office space, secretarial assistance \u2014 a real-cost reality check is essential); institutional arrangements; and the <strong>Consultancy Monitoring Committee (CMC)<\/strong> review procedure after award.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-cost\">\r\n <span class=\"section-badge amber\">\u00a7 4.2<\/span>\r\n <h3>Estimating costs, setting the budget & seeking approval<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">Category (a)<\/div>\r\n <div class=\"cat-title\">Fee \/ Remuneration<\/div>\r\n <p>According to the contract type. Staff remuneration rates include <strong>basic salary, social charges, overheads, fees\/profit and allowances<\/strong>; estimate provides for forecast inflation over the assignment.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">Category (b)<\/div>\r\n <div class=\"cat-title\">Reimbursable Costs<\/div>\r\n <p>Logistics (city\/national\/international travel & stay), physical inputs (vehicles, lab equipment), support services, contingencies & profit, taxes & duties.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <p>Costs are normally estimated using <strong>unit rates \u00d7 quantities<\/strong> (some items \u2014 contingencies, support services \u2014 on a lump-sum or percentage basis). A <strong>mismatch between cost estimate and ToR<\/strong> misleads consultants on the desired scope\/depth and causes problems at negotiation or implementation.<\/p>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-final\">\r\n <span class=\"section-badge teal\">\u00a7 4.3<\/span>\r\n <h3>Finalising & approving the ToR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Budget must match the ToR<\/div>\r\n <p>The scope in the ToR must be <strong>compatible with the available budget<\/strong> \u2014 confirm all required tasks are included and adequate budget allocated (a series of iterations may be needed). <strong>CA approval<\/strong> of the ToR should be taken before proceeding; after administrative approval, budget provision is made (or confirmed for the Revised Estimate stage). <strong>Procurement may be initiated only after such budgetary provisions\/confirmations.<\/strong><\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-plan\">\r\n <span class=\"section-badge slate\">\u00a7 4.4<\/span>\r\n <h3>Developing a procurement plan<\/h3>\r\n <\/div>\r\n\r\n <p>A consultancy is often part of a larger project with other components. The Entity develops a <strong>synchronised procurement plan<\/strong> sequencing all components, choosing the selection method & contract type, and timing consultant selection to meet implementation needs \u2014 e.g. a construction-supervision consultant must be <strong>mobilised before the award of the construction contract<\/strong>.<\/p>\r\n\r\n <div class=\"section-heading-block\" id=\"c4-eproc\">\r\n <span class=\"section-badge red\">\u00a7 4.5<\/span>\r\n <h3>e-Procurement \u2014 Rule 160, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Mandatory, with limited exemptions<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">MAND<\/span><span class=\"nl-text\">It is <strong>mandatory<\/strong> for Ministries\/Departments to receive <strong>all bids through e-procurement portals<\/strong> for all procurements.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NIC<\/span><span class=\"nl-text\">Low-volume Departments may use the <strong>NIC<\/strong> e-procurement solution; others may use NIC or another service provider via due process.<\/span><\/li>\r\n <li><span class=\"nl-tag\">GeM<\/span><span class=\"nl-text\">These instructions do <strong>not<\/strong> apply to procurements made through <strong>GeM<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SECURITY<\/span><span class=\"nl-text\">Cases of <strong>national security \/ strategic confidentiality<\/strong> may be exempted with the <strong>concerned Secretary's approval and the Financial Adviser's concurrence<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ABROAD<\/span><span class=\"nl-text\">For tenders floated by <strong>Indian Missions abroad<\/strong>, the Competent Authority deciding the tender may grant exemption.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz4\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 4 Quiz \u2014 ToR, costs & e-procurement<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 4. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage4\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore4\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext4\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c4-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 4 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>ToR analogue<\/td><td>Description, Quantity & Technical Spec for goods (<strong>Rule 185<\/strong>)<\/td><\/tr>\r\n <tr><td>ToR describes<\/td><td><strong>Activities, not methodology<\/strong> (consultant's task)<\/td><\/tr>\r\n <tr><td>Inception Report<\/td><td>~ <strong>6 weeks<\/strong> after commencement<\/td><\/tr>\r\n <tr><td>Progress Reports<\/td><td>Monthly\/bimonthly; feasibility <strong>2-month<\/strong>, construction <strong>monthly<\/strong><\/td><\/tr>\r\n <tr><td>Interim report review<\/td><td>Entity takes <strong>\u2264 15 days<\/strong> to approve a draft<\/td><\/tr>\r\n <tr><td>Cost categories<\/td><td>(a) Fee\/remuneration \u00b7 (b) Reimbursable costs<\/td><\/tr>\r\n <tr><td>Review committee after award<\/td><td><strong>Consultancy Monitoring Committee (CMC)<\/strong><\/td><\/tr>\r\n <tr><td>ToR approval<\/td><td><strong>CA approval<\/strong> + budget provision before initiating procurement<\/td><\/tr>\r\n <tr><td>e-Procurement<\/td><td><strong>Mandatory<\/strong> (Rule 160); not for GeM<\/td><\/tr>\r\n <tr><td>e-Proc exemption<\/td><td>National security \u2014 <strong>Secretary approval + FA concurrence<\/strong><\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch5\" data-chapter=\"5\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c5-eoi\">\r\n <span class=\"chapter-badge\">CH 5 \u00b7 SHORTLISTING<\/span>\r\n <h2>Shortlisting Stage in Procurement of Consultancy Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Why shortlist \u2014 the two-stage logic<\/div>\r\n <div class=\"def-text\">\r\n Because consultancy quality is non-measurable, it is too costly to invite and evaluate proposals from everyone. So selection rests on <strong>limited proposals from a short list of qualified firms<\/strong>. <strong>Stage 1:<\/strong> qualified firms are shortlisted transparently. <strong>Stage 2:<\/strong> an RfP (technical + financial) is invited from the shortlist. Avoid unreasonable qualification criteria that restrict participation.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Other (non-consultancy) services \u2014 single stage<\/div>\r\n <p>Done by a simpler, <strong>single-stage RfP<\/strong> process (like Goods\/Works). <strong>Above \u20b910 lakh<\/strong> \u2192 normally an <strong>advertised RfP<\/strong>; <strong>below \u20b910 lakh<\/strong> \u2192 RfP issued to a selected shortlist of likely providers.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-thresh\">\r\n <span class=\"section-badge teal\">\u00a7 5.1.3<\/span>\r\n <h3>Advertised EoI & the shortlisting thresholds<\/h3>\r\n <\/div>\r\n\r\n <div class=\"info-row\">\r\n <div class=\"info-card t-teal\"><div class=\"ic-big\">> \u20b950 lakh<\/div><div class=\"ic-cap\"><strong>Rule 183(ii):<\/strong> openly advertised competitive shortlisting \u2014 <strong>Expression of Interest (EoI)<\/strong> on CPPP & GeM.<\/div><\/div>\r\n <div class=\"info-card\"><div class=\"ic-big\">≤ \u20b950 lakh<\/div><div class=\"ic-cap\"><strong>Rule 183(i):<\/strong> no formal published EoI \u2014 akin to a Limited Tender Enquiry; long-list of <strong>not less than three<\/strong>.<\/div><\/div>\r\n <div class=\"info-card t-amber\"><div class=\"ic-big\">3 \u2013 8<\/div><div class=\"ic-cap\">Short list: minimum <strong>three (Rule 184)<\/strong>, generally not more than <strong>eight<\/strong>.<\/div><\/div>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">The Request for EoI (REoI)<\/div>\r\n <p>Advertised on <strong>CPPP (eprocure.gov.in)<\/strong> and <strong>GeM<\/strong> (and the Entity's own website). A complete <strong>ToR must be ready<\/strong> before requesting EoI, but the <strong>REoI itself shall not include the assignment ToR<\/strong>. The REoI asks for: core business & years in business; qualifications in the field; technical\/managerial organisation; and number of key staff. Consultants must <strong>not<\/strong> be asked about their approach or to submit CVs (those belong in the RfP); brevity is stressed. Where Indian consultants may be unavailable, EoI may use the <strong>Global Tender Enquiry (GTE)<\/strong> route.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-gte\">\r\n <span class=\"section-badge red\">\u00a7 5.1.4<\/span>\r\n <h3>Global Tender Enquiry (GTE) \u2014 Rule 161, GFR<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">No GTE up to \u20b9200 crore<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">BAR<\/span><span class=\"nl-text\">No GTE shall be invited <strong>up to \u20b9200 crore<\/strong> (or such limit as DoE prescribes). Exceptional cases need detailed justification & <strong>prior approval of the competent authority<\/strong> specified by DoE.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WHO<\/span><span class=\"nl-text\">The proposal is submitted by the <strong>Administrative Ministry<\/strong> with the <strong>Financial Adviser's concurrence<\/strong> and the <strong>Secretary's approval<\/strong>; proposals from individual offices\/autonomous bodies\/CPSUs are <strong>not entertained<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DOM<\/span><span class=\"nl-text\">First a <strong>domestic open tender<\/strong> (after 15.05.2020) must be floated to identify domestic providers; the <strong>3\/5-year procurement plan<\/strong> (PPP-MII) must be published.<\/span><\/li>\r\n <li><span class=\"nl-tag\">RESEARCH<\/span><span class=\"nl-text\">For <strong>specialised research equipment<\/strong> (up to \u20b9200 crore) for Educational\/Research Institutes, the <strong>Secretary<\/strong> of the Ministry is the competent authority, subject to non-availability certificates and use of the <strong>I-STEM portal<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-below\">\r\n <span class=\"section-badge purple\">\u00a7 5.1.9\u20135.1.10<\/span>\r\n <h3>Below \u20b925 lakh & empanelment<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Limited-tender-style shortlisting<\/div>\r\n <p>A <strong>long list<\/strong> is built from enquiries to other Ministries\/Organisations, Chambers of Commerce, consultancy associations, etc., then moderated to prima-facie eligible firms \u2014 <strong>not less than three<\/strong> (if fewer are available, proceed with fewer but never below three, with <strong>CA approval<\/strong>). Entities doing frequent consultancy procurement may maintain a <strong>Panel of qualified consultants<\/strong> (like vendor registration for goods). A formal EoI may still be advertised below \u20b925 lakh, with CA approval, if complexity justifies. Empanelled contractors' performance is <strong>reviewed periodically<\/strong>; the list is updated and members upgraded\/downgraded\/de-listed.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-shortlist\">\r\n <span class=\"section-badge amber\">\u00a7 5.2<\/span>\r\n <h3>The short list & qualification weightages<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:62%\"><col style=\"width:38%\"><\/colgroup>\r\n <thead><tr><th>Qualification criterion (Table 2)<\/th><th>Weightage<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Past experience \/ track record of the consultant<\/td><td class=\"code-cell\">60%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">General profile of qualification, experience & number of key staff (not individual CVs)<\/td><td class=\"code-cell\">25%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Overall financial strength (turnover, profitability, cash flow)<\/td><td class=\"code-cell\">15%<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Scoring & the turnover caution<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">75%<\/span><span class=\"nl-text\">Shortlist all consultants who secure the minimum required marks (<strong>normally 75%<\/strong>), specified in the EoI. A simplified <strong>fail\/pass benchmark<\/strong> may be used instead (e.g. \u2265 2 similar projects; key staff \u2265 7 years & a Master's; turnover \u2265 \u20b910 crore).<\/span><\/li>\r\n <li><span class=\"nl-tag\">WHY<\/span><span class=\"nl-text\">Scoring is not merely for disqualification but to establish relative strengths and arrive at a robust short list.<\/span><\/li>\r\n <li><span class=\"nl-tag\">TURNOVER<\/span><span class=\"nl-text\">Keeping minimum qualifying turnover at <strong>5\u201310 times the estimated cost<\/strong> appears <strong>high<\/strong> \u2014 it reduces competition; criteria should be reasonable and such high turnover kept only if adequately justified.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CONCURRENT<\/span><span class=\"nl-text\">If a firm is considered for <strong>concurrent assignments<\/strong>, the Entity assesses its overall capacity before placing it on more than one short list \u2014 pre-declared in the EoI.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c5-risks\">\r\n <span class=\"section-badge slate\">\u00a7 5.3<\/span>\r\n <h3>Shortlisting \u2014 risks & mitigation<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:42%\"><col style=\"width:58%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Conflict-of-interest situations not reported\/declared (by consultants or evaluation-committee members).<\/td><td>Signed <strong>declarations<\/strong> in specified formats \u2014 at the EoI bid stage, in the technical proposal, and by CEC members before evaluation.<\/td><\/tr>\r\n <tr><td><strong>Qualifications leasing<\/strong> \u2014 weak local bidders show association with well-qualified (foreign\/local) firms only to borrow their credentials, then contribute little at execution.<\/td><td>From the EoI stage, clearly identify the qualified applicant and put the partner's <strong>guaranteed contribution on record \/ in the contract<\/strong>.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz5\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 5 Quiz \u2014 EoI, thresholds & the short list<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 5. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage5\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore5\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext5\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c5-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 5 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Advertised EoI threshold<\/td><td>Procurement <strong>above \u20b925 lakh<\/strong> \u2192 open EoI on CPPP & GeM (Rule 183(ii))<\/td><\/tr>\r\n <tr><td>Below \u20b925 lakh<\/td><td>No formal EoI \u2014 LTE-style long-list of <strong>\u2265 3<\/strong> (Rule 183(i))<\/td><\/tr>\r\n <tr><td>Other services RfP<\/td><td><strong>> \u20b910 lakh<\/strong> advertised; <strong>< \u20b910 lakh<\/strong> selected shortlist<\/td><\/tr>\r\n <tr><td>Short list size<\/td><td>Minimum <strong>3 (Rule 184)<\/strong>, generally <strong>\u2264 8<\/strong><\/td><\/tr>\r\n <tr><td>REoI does NOT include<\/td><td>The assignment <strong>ToR<\/strong>, approach, or CVs<\/td><\/tr>\r\n <tr><td>GTE bar<\/td><td><strong>No GTE up to \u20b9200 crore<\/strong> without competent-authority approval<\/td><\/tr>\r\n <tr><td>GTE approval route<\/td><td>Admin Ministry + <strong>FA concurrence + Secretary approval<\/strong><\/td><\/tr>\r\n <tr><td>Qualification weights<\/td><td>Experience <strong>60%<\/strong> \u00b7 key staff <strong>25%<\/strong> \u00b7 finance <strong>15%<\/strong><\/td><\/tr>\r\n <tr><td>Shortlist cut-off<\/td><td>Normally <strong>75%<\/strong> of marks<\/td><\/tr>\r\n <tr><td>Turnover caution<\/td><td><strong>5\u201310\u00d7<\/strong> estimated cost is high \u2014 keep reasonable<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch6\" data-chapter=\"6\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c6-steps\">\r\n <span class=\"chapter-badge\">CH 6 \u00b7 COMPETITIVE SELECTION<\/span>\r\n <h2>Selection of Consultants by Competitive Process<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">The evaluation process (6.1)<\/div>\r\n <div class=\"def-text\">\r\n Nine steps: (i) prepare & issue the <strong>RfP<\/strong>; (ii) pre-proposal meeting; (iii) receipt of proposals; (iv) technical evaluation (quality); (v) public opening of financial proposals; (vi) financial evaluation; (vii) selection of the winning proposal; (viii) negotiations, if required; (ix) award of contract.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-rfp\">\r\n <span class=\"section-badge blue\">\u00a7 6.2<\/span>\r\n <h3>Request for Proposals (RfP)<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Who receives it & what it contains<\/div>\r\n <p>For consultancy, the RfP is sent <strong>only to the shortlisted consultants<\/strong>; for other (non-consultancy) services there is no EoI, so the RfP is <strong>advertised<\/strong> \u2014 except where value is <strong>under \u20b910 lakh<\/strong>. Sections: Letter of Invitation; Information to Consultants (ITC) + data sheet; ToR; list of key experts; firm\/expert qualification requirements; evaluation criteria & selection procedure; standard technical & financial formats; proposed form of contract (GCC + Special Conditions); mid-term & final-review procedure. Use the standard RfP with <strong>minimal changes<\/strong>.<\/p>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">6.2.2<\/div>\r\n <div class=\"cat-title\">Simplified Technical Proposal (STP)<\/div>\r\n <p>For <strong>LCS<\/strong>, where technical scores aren't weighted\/added, fail-pass benchmarks suffice and an <strong>STP<\/strong> (not a Full Technical Proposal) is called for. Used when the assignment: (i) is <strong>unlikely to have downstream impact<\/strong>; (ii) is <strong>routine<\/strong> with a well-defined ToR; (iii) needs no detailed evaluation of experience (auditors, accountants, consulting engineers).<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">6.2.4<\/div>\r\n <div class=\"cat-title\">Instructions to Consultants (ITC)<\/div>\r\n <p>Two parts \u2014 <strong>standard<\/strong> info + <strong>assignment-specific<\/strong> (via data sheet). Brings transparency on evaluation criteria, weights & minimum passing score. <strong>Shall not indicate the budget<\/strong> (except in FBS) but indicates expected key-staff input. Proposal validity <strong>normally 60 days<\/strong>.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-provisions\">\r\n <span class=\"section-badge amber\">\u00a7 6.2.6<\/span>\r\n <h3>Important provisions \u2014 currency, PVC, advances & securities<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">Currency & Price Adjustment (PVC)<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">INR<\/span><span class=\"nl-text\">Contracts are normally in <strong>Indian Rupees<\/strong>; if another currency is allowed, the conversion date (normally the <strong>date of opening the Technical Bid<\/strong>) is fixed in the RfP.<\/span><\/li>\r\n <li><span class=\"nl-tag\">18M<\/span><span class=\"nl-text\">If a <strong>time-based<\/strong> or <strong>indefinite-delivery<\/strong> contract is expected to exceed <strong>18 months<\/strong>, include a price-adjustment provision based on the <strong>Consumer Price Index<\/strong>. <strong>Lump-sum<\/strong> contracts are generally <strong>not<\/strong> subject to price adjustment (except small multi-year contracts, e.g. auditors).<\/span><\/li>\r\n <li><span class=\"nl-tag\">PVC<\/span><span class=\"nl-text\">PVC elements: a stated <strong>base date<\/strong>; a <strong>minimum % threshold<\/strong> below which no adjustment applies; and a <strong>ceiling<\/strong> on variation. Provide your own formula to keep bids comparable.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Advance payments & their limits<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">30%<\/span><span class=\"nl-text\">Up to <strong>30%<\/strong> of contract value to <strong>private firms<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">40%<\/span><span class=\"nl-text\">Up to <strong>40%<\/strong> to a <strong>State\/Central Government agency or PSU<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">6M<\/span><span class=\"nl-text\">For a <strong>maintenance contract<\/strong>, not exceeding the amount payable for <strong>six months<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SAFE<\/span><span class=\"nl-text\">Ceilings are relaxable by the Ministry with <strong>FA concurrence<\/strong>; a <strong>bank guarantee<\/strong> safeguard is taken. Advance for <strong>pre-paid electricity meters<\/strong> to authorised DISCOMs needs <strong>no BG<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:22%\"><col style=\"width:39%\"><col style=\"width:39%\"><\/colgroup>\r\n <thead><tr><th>Feature<\/th><th>Bid Security \u2014 Rule 170<\/th><th>Performance Security \u2014 Rule 171<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">When<\/td><td>Not usual in consultancy; optional for time-critical cases.<\/td><td>From the successful bidder, to ensure due performance.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Amount<\/td><td><strong>2%\u20135%<\/strong> of estimated value.<\/td><td><strong>5%\u201310%<\/strong> of contract value (<strong>reduced to 3% till 31.03.2023<\/strong>).<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Validity<\/td><td><strong>45 days<\/strong> beyond final bid validity.<\/td><td><strong>60 days<\/strong> beyond completion of all obligations.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Timing<\/td><td>Released to unsuccessful bidders <strong>within 30 days<\/strong> of award (or of the first-stage result).<\/td><td>Furnished within <strong>14 days<\/strong> of award notification.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Exemptions<\/td><td><strong>MSEs & Startups<\/strong> exempt; alternative is a <strong>Bid Securing Declaration<\/strong>.<\/td><td>Not needed for contract value <strong>up to \u20b91 lakh<\/strong>; GTE \u2192 <strong>URDG 758<\/strong>.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Other RfP\/contract clauses<\/div>\r\n <p>Standard Form of Contract is preferred; <strong>GCC should not be altered<\/strong> \u2014 project-specific changes go through <strong>Special Conditions<\/strong>. Also: <strong>professional liability<\/strong> (no limitation for gross negligence\/wilful misconduct; never below a stated multiple of contract value); <strong>staff substitution<\/strong> only with equally-qualified replacements approved by the Entity; applicable law is Indian law; training\/transfer-of-knowledge cost stated explicitly. A <strong>pre-bid conference<\/strong> may be held for large-value tenders.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-pre\">\r\n <span class=\"section-badge purple\">\u00a7 6.3\u20136.4<\/span>\r\n <h3>Pre-proposal meeting & receipt of proposals<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Timelines<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">15\u201330<\/span><span class=\"nl-text\">A pre-proposal meeting is normally held <strong>15\u201330 days<\/strong> after RfP issue. Significant changes go out as a formal <strong>corrigendum<\/strong>, leaving bidders <strong>not less than 15 days<\/strong> to respond.<\/span><\/li>\r\n <li><span class=\"nl-tag\">4w\u20133m<\/span><span class=\"nl-text\">Time to prepare proposals: normally <strong>not less than 4 weeks, not more than 3 months<\/strong>; with international participation, <strong>not less than 8 weeks<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SEAL<\/span><span class=\"nl-text\">Technical & financial proposals are submitted <strong>together<\/strong>, in <strong>separate sealed envelopes inside an outer envelope<\/strong>. Technical bids open immediately; financial bids open <strong>only for technically qualified firms<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">LATE<\/span><span class=\"nl-text\"><strong>Late bids<\/strong> are not considered and are <strong>returned unopened<\/strong> (Rules 187 & 188).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-cec\">\r\n <span class=\"section-badge red\">\u00a7 6.5<\/span>\r\n <h3>Consultancy Evaluation Committee (CEC) \u2014 Rule 189<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Constitution & conduct<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">>\u20b910L<\/span><span class=\"nl-text\">Constituted for cases with financial implication <strong>over \u20b910 lakh<\/strong>; <strong>normally three members<\/strong> including the <strong>Financial Adviser\/representative<\/strong> and a <strong>user representative<\/strong> (who acts as <strong>convenor<\/strong>).<\/span><\/li>\r\n <li><span class=\"nl-tag\">RULE<\/span><span class=\"nl-text\"><strong>No member may report directly to another<\/strong> CEC member. The CEC handles all stages \u2014 EoI, shortlist, ToR, RfP, technical & financial evaluation, negotiation, selection. No separate technical committee is needed.<\/span><\/li>\r\n <li><span class=\"nl-tag\">GRADE<\/span><span class=\"nl-text\">A grading system of <strong>3\u20134 grades<\/strong> is defined <strong>before<\/strong> proposals are opened, to prevent bias.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NOCOMM<\/span><span class=\"nl-text\">Members must have <strong>no communication with shortlisted firms<\/strong> from appointment until award.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DISSENT<\/span><span class=\"nl-text\">Differences resolved by discussion; persistent dissent is <strong>recorded<\/strong>, the <strong>majority view<\/strong> prevails, and the <strong>CA may overrule<\/strong> with recorded reasons.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Rating scale (for unquantifiable criteria)<\/div>\r\n <table class=\"compare-table\" style=\"margin:8px 0 0;\">\r\n <colgroup><col style=\"width:14%\"><col style=\"width:56%\"><col style=\"width:30%\"><\/colgroup>\r\n <thead><tr><th>Grade<\/th><th>Assessment<\/th><th>Marks<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">A<\/td><td>Very Good<\/td><td class=\"code-cell\">Full marks<\/td><\/tr>\r\n <tr><td class=\"label-cell\">B<\/td><td>Good<\/td><td class=\"code-cell\">80%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">C<\/td><td>Satisfactory<\/td><td class=\"code-cell\">60%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">D<\/td><td>Unsatisfactory<\/td><td class=\"code-cell\">30%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">E<\/td><td>Not Relevant<\/td><td class=\"code-cell\">10%<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-resp\">\r\n <span class=\"section-badge teal\">\u00a7 6.6\u20136.7<\/span>\r\n <h3>Responsiveness & technical evaluation<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">First stage \u2014 responsiveness<\/div>\r\n <p>Summarily rejected as <strong>non-responsive<\/strong>: proposals <strong>without bid security, unsigned, incomplete<\/strong> (required formats not submitted), not fully responding to the ToR, or with <strong>shorter validity<\/strong> than prescribed. A technical proposal containing <strong>material financial information<\/strong> is also rejected.<\/p>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Second stage \u2014 quality (absolute, not comparative)<\/div>\r\n <p>Each proposal is judged on its own merits and given an <strong>absolute<\/strong> grade against predefined criteria \u2014 total max technical score <strong>100<\/strong>. Criteria: (a) relevant experience; (b) methodology; (c) qualifications of key staff; (d) transfer of knowledge. Minimum qualifying mark <strong>normally 75<\/strong>. The technical evaluation report is <strong>confidential<\/strong> and needs CA approval.<\/p>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:64%\"><col style=\"width:36%\"><\/colgroup>\r\n <thead><tr><th>Rated criterion (Table 3)<\/th><th>Range of %<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Consultancy firm's specific experience<\/td><td class=\"code-cell\">5\u201310%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Methodology<\/td><td class=\"code-cell\">20\u201350%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Qualification & relevant experience of key staff<\/td><td class=\"code-cell\">30\u201360%<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Transfer of knowledge<\/td><td class=\"code-cell\">0\u201310%<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-cost\">\r\n <span class=\"section-badge gold\">\u00a7 6.8<\/span>\r\n <h3>Evaluation of cost \u2014 Rule 190<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Opening & scoring the financial proposals<\/div>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">NOTIFY<\/span><span class=\"nl-text\">Non-qualified\/non-responsive consultants are notified; their <strong>financial proposals are returned unopened<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">3W<\/span><span class=\"nl-text\">In QCBS, financial opening is <strong>not later than three weeks<\/strong> after notification, conducted <strong>publicly<\/strong>; names, quality scores & prices are read aloud.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CORR<\/span><span class=\"nl-text\"><strong>Time-based<\/strong> proposals: arithmetical errors are corrected. <strong>Lump-sum<\/strong>: <strong>no correction<\/strong> \u2014 all prices deemed included.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SCORE<\/span><span class=\"nl-text\">In QCBS the <strong>lowest price gets 100<\/strong>; others score inversely proportional to price.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FX<\/span><span class=\"nl-text\">Costs convert to INR using the <strong>SBI BC selling rate<\/strong> on the <strong>date of opening the technical bids<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">ALB<\/span><span class=\"nl-text\"><strong>Abnormally Low Bid:<\/strong> seek written price analysis; reject if the bidder fails to demonstrate capability \u2014 but <strong>no fixed normative %<\/strong> is prescribed.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-winner\">\r\n <span class=\"section-badge blue\">\u00a7 6.9<\/span>\r\n <h3>Selecting the winning consultant<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">LCS, QCBS & the combined-score formula<\/div>\r\n <p><strong>LCS:<\/strong> proposals ranked by total cost; the least-cost (<strong>L-1<\/strong>) is recommended for award. <strong>QCBS (Rule 192):<\/strong> technical 70% \/ cost 30% (or 60:40, 50:50, but technical <strong>not > 80%<\/strong>). Combined evaluated score:<\/p>\r\n <div class=\"highlight-box\">\r\n <div class=\"hl-label\">Evaluated Bid Score<\/div>\r\n <div class=\"hl-text\"><strong>B = (C<sub>low<\/sub> \/ C) \u00b7 X + (T \/ T<sub>high<\/sub>) \u00b7 (1 \u2212 X)<\/strong> \u2014 where C = evaluated price, C<sub>low<\/sub> = lowest price, T = technical score, T<sub>high<\/sub> = best technical score, X = price weight. Highest combined score = <strong>H-1<\/strong>; a tie is broken in favour of the <strong>highest technical score<\/strong>.<\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Worked example (70:30, qualifying 75)<\/div>\r\n <p>Technical: A 75, B 80, C 90 \u2192 normalised (T\/T<sub>high<\/sub>) 83 \/ 89 \/ 100. Prices: A \u20b9120, B \u20b9100, C \u20b9110 \u2192 financial (C<sub>low<\/sub>\/C) 83 \/ 100 \/ 91. Combined: A = 83\u00d70.30 + 83\u00d70.70 = <strong>83 (H-3)<\/strong>; B = 100\u00d70.30 + 89\u00d70.70 = <strong>92.3 (H-2)<\/strong>; C = 91\u00d70.30 + 100\u00d70.70 = <strong>97.3 (H-1)<\/strong>. <strong>Proposal C wins<\/strong> at \u20b9110. (SSS: the single source is called for negotiation after its financial proposal is opened.)<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c6-award\">\r\n <span class=\"section-badge red\">\u00a7 6.10\u20136.13<\/span>\r\n <h3>Negotiations, award & risks<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Negotiation & award rules<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">NEG<\/span><span class=\"nl-text\">Negotiations are <strong>not essential<\/strong>; they freeze the ToR\/methodology in the \"Description of Services\" but must <strong>not substantially alter or dilute<\/strong> the ToR.<\/span><\/li>\r\n <li><span class=\"nl-tag\">FIN<\/span><span class=\"nl-text\"><strong>Financial<\/strong> negotiation only if a scope change has a financial bearing or quoted costs are unreasonable \u2014 and in <strong>no case an increase above the quoted price<\/strong>. If negotiation fails \u2192 <strong>cancel & re-invite<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">WEB<\/span><span class=\"nl-text\">The winning bidder's name & cost are <strong>posted on the website<\/strong> after award. Evaluation details stay <strong>confidential<\/strong> until award (overall technical scores may be shared).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:42%\"><col style=\"width:58%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>A JV wins on the lead partner's qualifications, but proposes <strong>no key expert\/team leader from that firm<\/strong>.<\/td><td>RfP should require the team leader to have worked <strong>2\u20133 years<\/strong> with the main qualifying firm; non-compliance \u2192 non-responsive.<\/td><\/tr>\r\n <tr><td>Request to <strong>substitute key experts at negotiation<\/strong>.<\/td><td>Examined very closely; agreed only if the RfP permits and the process was unreasonably delayed.<\/td><\/tr>\r\n <tr><td><strong>Unsigned CVs<\/strong> in the technical proposal.<\/td><td>Evaluate without the unsigned CVs; never allow substitution at negotiation; if most CVs are unsigned \u2192 reject as non-responsive.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz6\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 6 Quiz \u2014 RfP, CEC, evaluation & award<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 6. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage6\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore6\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext6\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c6-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 6 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>RfP recipients<\/td><td>Shortlisted firms (consultancy); advertised for other services unless <strong>< \u20b910 lakh<\/strong><\/td><\/tr>\r\n <tr><td>Proposal validity<\/td><td>Normally <strong>60 days<\/strong>; ITC shall not show budget (except FBS)<\/td><\/tr>\r\n <tr><td>Price adjustment<\/td><td>Time-based\/indefinite contracts <strong>> 18 months<\/strong> \u2192 PVC on CPI<\/td><\/tr>\r\n <tr><td>Advance limits<\/td><td><strong>30%<\/strong> private \u00b7 <strong>40%<\/strong> Govt\/PSU \u00b7 <strong>6 months<\/strong> for maintenance<\/td><\/tr>\r\n <tr><td>Bid security (Rule 170)<\/td><td><strong>2\u20135%<\/strong>; valid <strong>45 days<\/strong> beyond bid validity; MSE\/startup exempt<\/td><\/tr>\r\n <tr><td>Performance security (Rule 171)<\/td><td><strong>5\u201310%<\/strong> (3% till 31.03.2023); within <strong>14 days<\/strong>; nil up to \u20b91 lakh<\/td><\/tr>\r\n <tr><td>Proposal time<\/td><td><strong>4 weeks\u20133 months<\/strong>; international <strong>\u2265 8 weeks<\/strong><\/td><\/tr>\r\n <tr><td>CEC (Rule 189)<\/td><td>For cases <strong>> \u20b910 lakh<\/strong>; <strong>3 members<\/strong>; user rep = convenor<\/td><\/tr>\r\n <tr><td>Rating scale<\/td><td>A full \u00b7 B 80% \u00b7 C 60% \u00b7 D 30% \u00b7 E 10%<\/td><\/tr>\r\n <tr><td>Technical eval<\/td><td><strong>Absolute<\/strong> grade \/100; qualifying normally <strong>75<\/strong><\/td><\/tr>\r\n <tr><td>FX conversion<\/td><td><strong>SBI BC selling rate<\/strong> on date of opening technical bids<\/td><\/tr>\r\n <tr><td>QCBS (Rule 192)<\/td><td>70:30 (\u2264 80% technical); tie \u2192 highest technical = H-1<\/td><\/tr>\r\n <tr><td>Financial negotiation<\/td><td>Never above the quoted price; failure \u2192 cancel & re-invite<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch7\" data-chapter=\"7\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c7-sss\">\r\n <span class=\"chapter-badge\">CH 7 \u00b7 SPECIAL ENGAGEMENTS<\/span>\r\n <h2>Special Types of Engagements<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">When the standard competitive route is varied<\/div>\r\n <div class=\"def-text\">\r\n This chapter sets the method for special cases: <strong>Single Source Selection<\/strong>, <strong>individual<\/strong> consultants, <strong>specialised agencies & NGOs<\/strong>, <strong>procurement & inspection agents<\/strong>, <strong>financial advisors<\/strong>, <strong>auditors<\/strong>, and public <strong>logo\/symbol design competitions<\/strong>.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">7.1 \u00b7 Single Source Selection (SSS)<\/div>\r\n <p>Direct negotiation lacks the benefits of competition and transparency, so <strong>powers must be severely restricted<\/strong> \u2014 used only in exceptional, inescapable circumstances. Reasons & the choice of firm are <strong>recorded and approved by the CA<\/strong> (per DPFR\/SoPP) before single tendering. For <strong>downstream continuity<\/strong>, the initial RfP should outline the prospect; but if the initial assignment was <strong>not competitive<\/strong> or the downstream work is <strong>substantially larger<\/strong>, a competitive process is followed (the initial firm not excluded). Per CVC guidelines, the CFA reports <strong>all selections by nomination every month<\/strong> to the Secretary\/Head of Department.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-individual\">\r\n <span class=\"section-badge teal\">\u00a7 7.2<\/span>\r\n <h3>Selection of individual consultants<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">When teams aren't needed<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">WHEN<\/span><span class=\"nl-text\">Used where a team isn't required, no outside support is needed, and the <strong>individual's experience\/qualifications are paramount<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">3<\/span><span class=\"nl-text\">Selected by <strong>comparison of qualifications of at least three candidates<\/strong> who expressed interest or were approached; advertised on <strong>CPPP & GeM<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CEC<\/span><span class=\"nl-text\">The <strong>CEC<\/strong> awards marks for education & experience (may interview) and recommends remuneration.<\/span><\/li>\r\n <li><span class=\"nl-tag\">DN<\/span><span class=\"nl-text\">Direct negotiation only in exceptional cases \u2014 continuation of competitively-won work, natural-disaster emergencies, or sole qualified individual. Conflict-of-interest rules apply to the <strong>parent firm<\/strong> of an employed candidate.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-agencies\">\r\n <span class=\"section-badge purple\">\u00a7 7.3\u20137.4<\/span>\r\n <h3>Specialised agencies, institutions & NGOs<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">7.3<\/div>\r\n <div class=\"cat-title\">Specialised Agencies \/ Institutions<\/div>\r\n <p>Government\/semi-government agencies, universities, professional institutions. Where they hold special expertise or back-up facilities, <strong>SSS<\/strong> may be appropriate with <strong>full justification<\/strong> that it is in the Entity's best interest. For Government & semi-Government agencies, SSS is an appropriate method.<\/p>\r\n <\/div>\r\n <div class=\"cat-card e\">\r\n <div class=\"cat-label\">7.4<\/div>\r\n <div class=\"cat-title\">NGOs<\/div>\r\n <p>Shortlists for community\/participatory assignments may comprise NGOs entirely; then <strong>QCBS<\/strong> is used, with criteria reflecting grassroots experience, participatory approaches, committed leadership & beneficiary participation. <strong>SSS<\/strong> may hire a local NGO for a <strong>very small assignment in a remote area<\/strong> where only one is available.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-pa\">\r\n <span class=\"section-badge amber\">\u00a7 7.5\u20137.6<\/span>\r\n <h3>Procurement & inspection agents<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">QCBS with cost weight up to 50%<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">PA<\/span><span class=\"nl-text\"><strong>Procurement Agents<\/strong> handling specific items are paid a <strong>percentage<\/strong> of value handled and selected under <strong>QCBS with cost weight up to 50%<\/strong> \u2014 but at 50% finance dominates, so the <strong>quality threshold must be set high<\/strong>. Advisory-only PAs use QCBS time-based contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">IA<\/span><span class=\"nl-text\"><strong>Inspection Agents<\/strong> (pre-shipment\/on-arrival quality, quantity, price) \u2014 also <strong>QCBS, cost up to 50%<\/strong>, paid as a % of goods inspected. Clauses making the <strong>supplier pay inspectors' travel\/stay\/hospitality must be avoided<\/strong> \u2014 they compromise inspection independence.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-fin\">\r\n <span class=\"section-badge blue\">\u00a7 7.7\u20137.8<\/span>\r\n <h3>Financial advisors & auditors<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">7.7<\/div>\r\n <div class=\"cat-title\">Financial Advisors<\/div>\r\n <p>For <strong>studies\/financial consultancy<\/strong> \u2014 any suitable method. For <strong>restructuring, M&A, demerger, privatisation<\/strong> \u2014 <strong>QCBS<\/strong>, with remuneration as a <strong>lump-sum retainer + a success fee<\/strong> (preferably a % of transaction value). Cost weight may exceed the standard (e.g. <strong>30%<\/strong>), or LCS may be used.<\/p>\r\n <\/div>\r\n <div class=\"cat-card c\">\r\n <div class=\"cat-label\">7.8<\/div>\r\n <div class=\"cat-title\">Auditors<\/div>\r\n <p>Auditing runs under well-defined ToR and professional standards, so auditors are selected by the <strong>LCS<\/strong> system, with cost as the selection factor.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c7-logo\">\r\n <span class=\"section-badge gold\">\u00a7 7.9<\/span>\r\n <h3>Public competition for logo \/ symbol design \u2014 Rule 196<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Transparent, fair & objective<\/div>\r\n <ul class=\"note-list gold\">\r\n <li><span class=\"nl-tag\">PUB<\/span><span class=\"nl-text\">Wide publicity on the Ministry's website and the <strong>CPPP<\/strong> (e-publishing module).<\/span><\/li>\r\n <li><span class=\"nl-tag\">LAW<\/span><span class=\"nl-text\">Keep in view the <strong>Official Languages Act<\/strong> and the <strong>Emblems & Names (Prevention of Improper Use) Act<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">NOTICE<\/span><span class=\"nl-text\">A detailed <strong>Competition Notice<\/strong> states objectives, qualification & evaluation criteria (single\/multi-stage, or public voting for items of national importance), submission format, prizes, and jury composition.<\/span><\/li>\r\n <li><span class=\"nl-tag\">IPR<\/span><span class=\"nl-text\">It is clearly stipulated that the <strong>intellectual property rights of the winning design rest with the sponsoring agency<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz7\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 7 Quiz \u2014 special engagements<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 7. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage7\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore7\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext7\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c7-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 7 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Engagement<\/th><th>Method \/ Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>SSS nomination report<\/td><td>CFA reports all nominations <strong>monthly<\/strong> to Secretary\/Head (CVC)<\/td><\/tr>\r\n <tr><td>Individual consultant<\/td><td>Compare qualifications of <strong>\u2265 3<\/strong> candidates; CEC scores & may interview<\/td><\/tr>\r\n <tr><td>Specialised Govt agency<\/td><td><strong>SSS<\/strong> appropriate, with full justification<\/td><\/tr>\r\n <tr><td>NGOs<\/td><td><strong>QCBS<\/strong> (SSS for a remote single-NGO micro-assignment)<\/td><\/tr>\r\n <tr><td>Procurement agents<\/td><td><strong>QCBS<\/strong>, cost weight <strong>up to 50%<\/strong> (keep quality bar high)<\/td><\/tr>\r\n <tr><td>Inspection agents<\/td><td>QCBS, cost up to 50%; supplier must <strong>not<\/strong> fund inspectors<\/td><\/tr>\r\n <tr><td>Financial advisors<\/td><td>Restructuring\/M&A \u2192 <strong>QCBS<\/strong>; retainer + success fee<\/td><\/tr>\r\n <tr><td>Auditors<\/td><td><strong>LCS<\/strong><\/td><\/tr>\r\n <tr><td>Logo competition (Rule 196)<\/td><td>Wide publicity; <strong>IPR of winner rests with sponsoring agency<\/strong><\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch8\" data-chapter=\"8\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c8-monitor\">\r\n <span class=\"chapter-badge\">CH 8 \u00b7 MONITORING<\/span>\r\n <h2>Monitoring the Consultancy \/ Other Services Contract<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Monitoring \u2014 Rule 195, GFR<\/div>\r\n <div class=\"def-text\">\r\n The awarding Ministry stays involved <strong>throughout<\/strong> so the output matches the contracted objectives. A <strong>Contract Monitoring Committee (CMC)<\/strong> is formed and a counterpart <strong>Project Manager<\/strong> (the nodal person) is designated, enabling <strong>Management by Exception<\/strong> against the risk-and-mitigation milestones.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">8.2 \u00b7 Contract Monitoring Committee (CMC)<\/div>\r\n <p>Constituted after selection, with <strong>at least three members<\/strong> at the appropriate level including the <strong>user's representative<\/strong> (CEC members may be reused). It monitors progress, ensures the assignment runs per contract, assesses deliverables, <strong>accepts\/rejects<\/strong> parts of the work, and <strong>levies liquidated damages or penalty<\/strong>. Its functions span the notice to proceed, inception review, contract variations, progress & expenditure monitoring, dispute handling, termination, final payment\/closure and post-contract evaluation.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-tlmonitor\">\r\n <span class=\"section-badge teal\">\u00a7 8.6\u20138.7<\/span>\r\n <h3>Monitoring time-based vs lump-sum contracts<\/h3>\r\n <\/div>\r\n\r\n <div class=\"cat-grid\">\r\n <div class=\"cat-card a\">\r\n <div class=\"cat-label\">8.6<\/div>\r\n <div class=\"cat-title\">Time-based<\/div>\r\n <p>Mobilisation\/demobilisation of key experts is watched carefully \u2014 the <strong>contract amount can be fully spent while the supervised work (e.g. construction) is barely half done<\/strong>, leading to claims & disputes.<\/p>\r\n <\/div>\r\n <div class=\"cat-card b\">\r\n <div class=\"cat-label\">8.7<\/div>\r\n <div class=\"cat-title\">Lump-sum<\/div>\r\n <p>Draft-report quality is checked carefully <strong>before releasing stage payments<\/strong>. For extra services, amend the contract promptly \u2014 generally the increase should be <strong>not more than 10\u201315%<\/strong>.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-variations\">\r\n <span class=\"section-badge amber\">\u00a7 8.10<\/span>\r\n <h3>Issuing contract variations<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout amber\">\r\n <div class=\"callout-label\">When changes have a cost\/timing impact<\/div>\r\n <ul class=\"note-list amber\">\r\n <li><span class=\"nl-tag\">10%<\/span><span class=\"nl-text\">If a variation increases the contract amount by <strong>more than 10%<\/strong>, the <strong>CA's prior approval<\/strong> is required; the amendment is published on the <strong>same e-procurement portal<\/strong> as the original tender.<\/span><\/li>\r\n <li><span class=\"nl-tag\">IT<\/span><span class=\"nl-text\">For <strong>IT projects<\/strong>, change-request value should generally be within <strong>\u00b115%<\/strong>, handled via a mechanism in the RfP and a <strong>Change Control Board<\/strong> (academic\/industry experts) whose technical & financial decisions are final.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-substitution\">\r\n <span class=\"section-badge purple\">\u00a7 8.11<\/span>\r\n <h3>Substitution of named key personnel<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Tightly controlled, with remuneration penalties<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">QUAL<\/span><span class=\"nl-text\">A replacement must be <strong>equally or better qualified<\/strong>; remuneration <strong>not more<\/strong> than for the original; the consultant <strong>bears all substitution costs<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">30%<\/span><span class=\"nl-text\">Substitution ordinarily limited to <strong>not more than 30%<\/strong> of total key personnel.<\/span><\/li>\r\n <li><span class=\"nl-tag\">SLAB<\/span><span class=\"nl-text\">Remuneration reductions: first 10% of replacements \u2192 <strong>5%<\/strong>; next 10% \u2192 <strong>10%<\/strong>; third 10% \u2192 <strong>15%<\/strong> (illustrative slabs, specified in the tender).<\/span><\/li>\r\n <li><span class=\"nl-tag\">IT-SYS<\/span><span class=\"nl-text\">IT-enabled attendance systems may verify key personnel are present per the deployment schedule.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-disputes\">\r\n <span class=\"section-badge red\">\u00a7 8.13<\/span>\r\n <h3>Disputes & arbitration<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">Resolve early; appeal sparingly<\/div>\r\n <ul class=\"note-list red\">\r\n <li><span class=\"nl-tag\">ADR<\/span><span class=\"nl-text\">Before arbitration\/litigation, parties may try <strong>mutual discussion, mediation & conciliation<\/strong>; the arbitral award is <strong>binding<\/strong>, governed by the Arbitration Clause.<\/span><\/li>\r\n <li><span class=\"nl-tag\">APPEAL<\/span><span class=\"nl-text\">Awards against the Government are <strong>not appealed routinely<\/strong> \u2014 a board\/committee weighs legal merit and realistic chances before appealing; casual appeals cause heavy damages\/interest.<\/span><\/li>\r\n <li><span class=\"nl-tag\">75%<\/span><span class=\"nl-text\">Where an award is challenged, <strong>75% of the arbitral award is paid against a Bank Guarantee<\/strong> into a designated <strong>Escrow Account<\/strong> (new <strong>Rule 227A<\/strong>) \u2014 used first for lenders' dues, then project completion.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-fm\">\r\n <span class=\"section-badge slate\">\u00a7 8.14\u20138.16<\/span>\r\n <h3>Force majeure, termination & closure<\/h3>\r\n <\/div>\r\n\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">FM<\/span><span class=\"nl-text\"><strong>Force Majeure<\/strong> suspends \u2014 not excuses \u2014 performance; notice must be given <strong>when it occurs<\/strong> (not ex-post-facto). If it prevents performance for over <strong>90 days<\/strong>, either party may terminate without financial repercussion.<\/span><\/li>\r\n <li><span class=\"nl-tag\">TERM<\/span><span class=\"nl-text\"><strong>Termination<\/strong> may be for external factors, convenience (e.g. budget shortage) or breach; the contract provides a <strong>30-day notice period<\/strong> and payment of legitimate outstanding fees\/wind-up costs.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CLOSE<\/span><span class=\"nl-text\">The contract is closed the <strong>day after the completion date<\/strong>; later expenditure is unlikely to be paid. The final claim must be submitted <strong>within 60 days<\/strong> of completion.<\/span><\/li>\r\n <\/ul>\r\n\r\n <div class=\"section-heading-block\" id=\"c8-risks\">\r\n <span class=\"section-badge gold\">\u00a7 8.17<\/span>\r\n <h3>Monitoring \u2014 risks & mitigation<\/h3>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:42%\"><col style=\"width:58%\"><\/colgroup>\r\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Request to <strong>substitute key experts<\/strong> during implementation (citing non-availability, health).<\/td><td>Allow only per contract \u2014 exceptional cases like death\/medical incapacity \u2014 with <strong>equal or better<\/strong> credentials, utmost scrutiny, and <strong>no undue financial benefit<\/strong> to the contractor.<\/td><\/tr>\r\n <tr><td><strong>Cost overruns in time-based contracts<\/strong> \u2014 delay benefits the consultant.<\/td><td>Include an <strong>upper limit<\/strong> of total payment; CA reviews extension once reached; build contract-management capacity; track progress at <strong>50% and 80%<\/strong> milestones; scrutinise timesheets & reimbursables.<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz8\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 8 Quiz \u2014 monitoring, variations & disputes<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Seven UPSC-style questions from Chapter 8. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage8\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore8\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext8\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c8-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 8 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Monitoring rule<\/td><td><strong>Rule 195<\/strong>; CMC + counterpart Project Manager<\/td><\/tr>\r\n <tr><td>CMC size<\/td><td><strong>At least 3 members<\/strong> incl. user representative<\/td><\/tr>\r\n <tr><td>Lump-sum extra services<\/td><td>Increase generally <strong>\u2264 10\u201315%<\/strong><\/td><\/tr>\r\n <tr><td>Contract variation > 10%<\/td><td>Needs <strong>CA prior approval<\/strong>; published on e-portal<\/td><\/tr>\r\n <tr><td>IT change request<\/td><td>Within <strong>\u00b115%<\/strong>; Change Control Board decision final<\/td><\/tr>\r\n <tr><td>Key-staff substitution cap<\/td><td>Ordinarily <strong>\u2264 30%<\/strong>; reductions 5% \/ 10% \/ 15% by slab<\/td><\/tr>\r\n <tr><td>Challenged arbitral award<\/td><td><strong>75%<\/strong> paid against BG into Escrow (Rule 227A)<\/td><\/tr>\r\n <tr><td>Force majeure<\/td><td>Suspends performance; > <strong>90 days<\/strong> \u2192 either party may terminate<\/td><\/tr>\r\n <tr><td>Termination notice<\/td><td><strong>30 days<\/strong><\/td><\/tr>\r\n <tr><td>Final claim<\/td><td>Within <strong>60 days<\/strong> of completion<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n \r\n <section class=\"chapter-pane\" id=\"pane-ch9\" data-chapter=\"9\">\r\n\r\n <div class=\"chapter-heading-block\" id=\"c9-applic\">\r\n <span class=\"chapter-badge\">CH 9 \u00b7 OTHER SERVICES<\/span>\r\n <h2>Procurement (Outsourcing) of Other (Non-consultancy) Services<\/h2>\r\n <\/div>\r\n\r\n <div class=\"def-card\">\r\n <div class=\"def-label\">Self-contained chapter<\/div>\r\n <div class=\"def-text\">\r\n Other services are defined <strong>by exclusion<\/strong> \u2014 routine, repetitive physical\/procedural work with tangible standards (transport, logistics, courier, upkeep, drilling, aerial photography, mapping). For anything not covered here, refer to the <strong>Manual of Policies & Procedures for Procurement of Goods<\/strong> \u2014 <em>not<\/em> the consultancy provisions.\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">Classification (9.1)<\/div>\r\n <ul class=\"note-list slate\">\r\n <li><span class=\"nl-tag\">\u22651yr<\/span><span class=\"nl-text\"><strong>Outsourcing<\/strong> = sustained, long-term deployment (<strong>one year or more<\/strong>) of outside agencies for work once done in-house (security, horticulture, housekeeping, catering, messenger services).<\/span><\/li>\r\n <li><span class=\"nl-tag\">WORKS<\/span><span class=\"nl-text\">Construction\/repair of <strong>civil assets<\/strong> \u2192 handle as <strong>Works<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">GOODS<\/span><span class=\"nl-text\">Repair\/AMC\/installation of <strong>mechanical, electrical or ICT assets<\/strong> \u2192 handle as <strong>Goods<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">CONS<\/span><span class=\"nl-text\">Where the <strong>intellectual\/advisory part dominates<\/strong> (physical incidental) \u2192 handle as <strong>Consultancy<\/strong> (e.g. underwater dam-safety analysis).<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-period\">\r\n <span class=\"section-badge teal\">\u00a7 9.4<\/span>\r\n <h3>Contract period & principles<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout teal\">\r\n <div class=\"callout-label\">Activity Schedule, period & multiple L1s<\/div>\r\n <ul class=\"note-list teal\">\r\n <li><span class=\"nl-tag\">SCHED<\/span><span class=\"nl-text\">Instead of a ToR, other services use an <strong>Activity Schedule<\/strong> (well-defined scope & time-frame).<\/span><\/li>\r\n <li><span class=\"nl-tag\">2yr<\/span><span class=\"nl-text\">Initial contract period is normally <strong>two years<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">+1yr<\/span><span class=\"nl-text\">Extension by a further <strong>one year<\/strong> if service is satisfactory; but if a <strong>cumulative penalty of 5%<\/strong> of contract value has been levied, no extension beyond the initial two years.<\/span><\/li>\r\n <li><span class=\"nl-tag\">L1s<\/span><span class=\"nl-text\">For <strong>multiple L-1 bidders<\/strong>, GeM offers system-determined selection or purchaser selection \u2014 the method must be <strong>decided before the tender is issued<\/strong>.<\/span><\/li>\r\n <li><span class=\"nl-tag\">HR<\/span><span class=\"nl-text\">Hiring manpower through contracts is <strong>avoided<\/strong> (regularisation risk); I-cards must identify the holder as the <strong>contractor's representative<\/strong>.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-selection\">\r\n <span class=\"section-badge purple\">\u00a7 9.5\u20139.6<\/span>\r\n <h3>Contract types & system of selection<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout purple\">\r\n <div class=\"callout-label\">Single-stage, lowest-price (Rules 201, 204, 206)<\/div>\r\n <ul class=\"note-list purple\">\r\n <li><span class=\"nl-tag\">TYPE<\/span><span class=\"nl-text\">Lump-sum, time-based, <strong>unit\/item-rate<\/strong> (e.g. taxi per km) or indefinite-delivery contracts.<\/span><\/li>\r\n <li><span class=\"nl-tag\">1-STAGE<\/span><span class=\"nl-text\">A simpler <strong>single-stage RfP<\/strong> process (Rule 206); a pre-qualification (PQB) stage may be added for highly technical services (seismic surveys, airborne data).<\/span><\/li>\r\n <li><span class=\"nl-tag\">\u20b910L<\/span><span class=\"nl-text\"><strong>Above \u20b910 lakh<\/strong> \u2192 advertised RfP; <strong>below \u20b910 lakh<\/strong> \u2192 shortlist of <strong>more than three<\/strong> from a moderated long-list, or a panel (Rule 201).<\/span><\/li>\r\n <li><span class=\"nl-tag\">L-1<\/span><span class=\"nl-text\">Selection is normally on <strong>lowest price (L-1)<\/strong> among technically responsive offers (Rule 204); SSS only in special circumstances.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-gem\">\r\n <span class=\"section-badge gold\">\u00a7 9.7<\/span>\r\n <h3>Government e-Marketplace (GeM) \u2014 Rule 149<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout gold\">\r\n <div class=\"callout-label\">Mandatory for goods\/services available on GeM<\/div>\r\n <p>End-to-end online procurement; supplier credentials certified by <strong>GeM SPV<\/strong>; procuring authorities certify rate reasonableness. Direct online-purchase ceilings:<\/p>\r\n <\/div>\r\n\r\n <table class=\"compare-table\">\r\n <colgroup><col style=\"width:34%\"><col style=\"width:66%\"><\/colgroup>\r\n <thead><tr><th>Value band<\/th><th>Mode of purchase on GeM<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td class=\"label-cell\">Up to \u20b925,000<\/td><td>Any available supplier meeting quality, specification & delivery.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">\u20b925,000 \u2013 \u20b95,00,000<\/td><td>GeM seller with the <strong>lowest price among \u2265 3 different manufacturers<\/strong>.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Above \u20b95,00,000<\/td><td>Lowest-price supplier after <strong>mandatory online bidding \/ reverse auction<\/strong>.<\/td><\/tr>\r\n <tr><td class=\"label-cell\">Automobiles<\/td><td>Direct-purchase ceiling is <strong>\u20b930 lakh<\/strong> (instead of \u20b925,000).<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n\r\n <div class=\"callout slate\">\r\n <div class=\"callout-label\">GeM discipline<\/div>\r\n <p>The <strong>Annual Procurement Plan<\/strong> is projected on GeM <strong>within 30 days<\/strong> of Budget approval; reasonableness is checked via Business Analytics (Last Purchase Price). A demand must <strong>not be split into small quantities<\/strong> to avoid L-1 buying or higher-authority sanction.<\/p>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-pay\">\r\n <span class=\"section-badge blue\">\u00a7 9.7.7<\/span>\r\n <h3>GeM payment \u2014 CRAC & PRC<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout blue\">\r\n <div class=\"callout-label\">Receipt, acceptance & deemed receipt<\/div>\r\n <ul class=\"note-list\">\r\n <li><span class=\"nl-tag\">CRAC<\/span><span class=\"nl-text\">Goods: <strong>100% payment (incl. GST)<\/strong> after receipt & acceptance and generation of the <strong>Consignee Receipt & Acceptance Certificate (CRAC)<\/strong>, less recoveries\/LD. Services: 100% per payment cycle after the Service CRAC.<\/span><\/li>\r\n <li><span class=\"nl-tag\">INSTALL<\/span><span class=\"nl-text\">Installation-intensive goods: <strong>80\u201390%<\/strong> on delivery (Delivery CRAC), balance <strong>10\u201320%<\/strong> after installation, testing & commissioning (Installation CRAC).<\/span><\/li>\r\n <li><span class=\"nl-tag\">PRC<\/span><span class=\"nl-text\">The consignee issues a <strong>Provisional Receipt Certificate (PRC) within 48 hours<\/strong>; if not acknowledged, a <strong>Deemed PRC auto-generates after 96 hours<\/strong>. A <strong>10-day<\/strong> rejection\/return window applies from the receipt date.<\/span><\/li>\r\n <li><span class=\"nl-tag\">PFMS<\/span><span class=\"nl-text\">Payments run through <strong>PFMS<\/strong> or the GeM Pool Account; on sanction, funds are <strong>blocked<\/strong> in PFMS for the contract\/payment cycle.<\/span><\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n <div class=\"section-heading-block\" id=\"c9-sla\">\r\n <span class=\"section-badge red\">\u00a7 9.18\u20139.19<\/span>\r\n <h3>Service Level Agreement & monitoring<\/h3>\r\n <\/div>\r\n\r\n <div class=\"callout red\">\r\n <div class=\"callout-label\">SLA \u2014 a balanced, two-sided framework<\/div>\r\n <p>An <strong>SLA<\/strong> creates common understanding of services, priorities & responsibilities. It is specified in the bidding document and finalised <strong>before services start<\/strong>, must be <strong>balanced to both parties<\/strong> with penalties on both sides, and has <strong>Service elements<\/strong> (scope, availability, standards, responsibilities, escalation) and <strong>Management elements<\/strong> (tracking, reporting, dispute resolution, revision). Contract monitoring follows <strong>Chapter 8 (Rule 205)<\/strong>, with the provider submitting a Programme before commencement.<\/p>\r\n <\/div>\r\n\r\n \r\n <div class=\"ix\" id=\"quiz9\">\r\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 9 Quiz \u2014 other services & GeM<\/h4><\/div>\r\n <div class=\"ix-body\">\r\n <p class=\"ix-help\">Eight UPSC-style questions from Chapter 9. Pick an answer to lock it; the explanation appears below.<\/p>\r\n <div id=\"quizStage9\"><\/div>\r\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore9\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext9\" disabled>Next →<\/button><\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n <div class=\"recap\" id=\"c9-recap\">\r\n <div class=\"recap-title\">⚡ Chapter 9 \u2014 Quick Recap<\/div>\r\n <table>\r\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\r\n <tbody>\r\n <tr><td>Fallback manual<\/td><td>Procurement of <strong>Goods<\/strong> manual (not consultancy)<\/td><\/tr>\r\n <tr><td>Civil vs mechanical asset<\/td><td>Civil \u2192 <strong>Works<\/strong>; mechanical\/electrical\/ICT \u2192 <strong>Goods<\/strong><\/td><\/tr>\r\n <tr><td>Scope document<\/td><td><strong>Activity Schedule<\/strong> (not a ToR)<\/td><\/tr>\r\n <tr><td>Contract period<\/td><td><strong>2 years<\/strong> initial, extendable <strong>+1 year<\/strong> if satisfactory<\/td><\/tr>\r\n <tr><td>No extension if<\/td><td>Cumulative penalty of <strong>5%<\/strong> of contract value levied<\/td><\/tr>\r\n <tr><td>Selection<\/td><td>Single-stage, <strong>L-1<\/strong> among responsive (Rules 204, 206)<\/td><\/tr>\r\n <tr><td>Below \u20b910 lakh<\/td><td>Shortlist of <strong>> 3<\/strong> (Rule 201)<\/td><\/tr>\r\n <tr><td>GeM direct purchase<\/td><td>\u2264 \u20b925,000 any seller \u00b7 \u20b925k\u2013\u20b95L lowest of <strong>\u22653 makers<\/strong> \u00b7 >\u20b95L bidding<\/td><\/tr>\r\n <tr><td>Automobiles ceiling<\/td><td><strong>\u20b930 lakh<\/strong><\/td><\/tr>\r\n <tr><td>Annual Procurement Plan<\/td><td>On GeM within <strong>30 days<\/strong> of Budget approval<\/td><\/tr>\r\n <tr><td>GeM acceptance<\/td><td><strong>CRAC<\/strong>; PRC in <strong>48 hrs<\/strong>; <strong>Deemed PRC at 96 hrs<\/strong><\/td><\/tr>\r\n <tr><td>SLA<\/td><td>Balanced, penalties both sides; finalised before services start<\/td><\/tr>\r\n <\/tbody>\r\n <\/table>\r\n <\/div>\r\n\r\n <\/section>\r\n\r\n <\/main>\r\n<\/div>\r\n<script>\r\n\/* \u2500\u2500\u2500\u2500\u2500 Chapter (tab) switching + sidebar navigation \u2500\u2500\u2500\u2500\u2500 *\/\r\n(function(){\r\n var details = Array.prototype.slice.call(document.querySelectorAll('details.toc-chapter'));\r\n var panes = Array.prototype.slice.call(document.querySelectorAll('section.chapter-pane'));\r\n\r\n function showChapter(n, scrollTop){\r\n panes.forEach(function(p){ p.classList.toggle('active', p.getAttribute('data-chapter') === String(n)); });\r\n if (scrollTop){\r\n var pane = document.getElementById('pane-ch'+n);\r\n if (pane) pane.scrollIntoView({behavior:'smooth', block:'start'});\r\n }\r\n }\r\n\r\n details.forEach(function(d){\r\n d.addEventListener('toggle', function(){\r\n if (d.open){\r\n details.forEach(function(o){ if (o !== d) o.open = false; });\r\n showChapter(d.getAttribute('data-chapter'), false);\r\n }\r\n });\r\n });\r\n\r\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a[href^=\"#\"]')).forEach(function(a){\r\n a.addEventListener('click', function(e){\r\n var id = a.getAttribute('href').slice(1);\r\n var target = document.getElementById(id);\r\n if (!target) return;\r\n e.preventDefault();\r\n var pane = target.closest('.chapter-pane');\r\n if (pane){\r\n var ch = pane.getAttribute('data-chapter');\r\n var d = document.querySelector('details.toc-chapter[data-chapter=\"'+ch+'\"]');\r\n if (d && !d.open) d.open = true;\r\n showChapter(ch, false);\r\n }\r\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a.active')).forEach(function(x){ x.classList.remove('active'); });\r\n a.classList.add('active');\r\n requestAnimationFrame(function(){ target.scrollIntoView({behavior:'smooth', block:'start'}); });\r\n });\r\n });\r\n})();\r\n\r\n\/* \u2500\u2500\u2500\u2500\u2500 Quiz factory \u2500\u2500\u2500\u2500\u2500 *\/\r\nfunction buildQuiz(stageId, scoreId, nextId, questions){\r\n var stage = document.getElementById(stageId);\r\n var scoreEl = document.getElementById(scoreId);\r\n var nextBtn = document.getElementById(nextId);\r\n if (!stage) return;\r\n var idx = 0, score = 0, answered = 0;\r\n\r\n function render(){\r\n var q = questions[idx];\r\n var html = '<div class=\"quiz-q\"><span class=\"q-tag\">Q'+(idx+1)+'<\/span><span>'+q.q+'<\/span><\/div><div class=\"quiz-opts\">';\r\n q.opts.forEach(function(opt, i){ html += '<button class=\"quiz-opt\" data-i=\"'+i+'\">'+opt+'<\/button>'; });\r\n html += '<\/div><div class=\"quiz-fb\"><\/div>';\r\n stage.innerHTML = html;\r\n var fb = stage.querySelector('.quiz-fb');\r\n var opts = Array.prototype.slice.call(stage.querySelectorAll('.quiz-opt'));\r\n opts.forEach(function(b){\r\n b.addEventListener('click', function(){\r\n var chosen = parseInt(b.getAttribute('data-i'), 10);\r\n opts.forEach(function(x){ x.classList.add('lock'); });\r\n opts[q.a].classList.add('correct');\r\n if (chosen === q.a){ score++; }\r\n else { b.classList.add('wrong'); }\r\n answered++;\r\n scoreEl.textContent = 'Score '+score+' \/ '+answered;\r\n fb.innerHTML = (chosen === q.a ? '<strong>Correct.<\/strong> ' : '<strong>Not quite.<\/strong> ') + q.fb;\r\n nextBtn.disabled = (idx >= questions.length - 1);\r\n if (idx >= questions.length - 1){ nextBtn.textContent = 'Done \\u2713'; }\r\n });\r\n });\r\n }\r\n nextBtn.addEventListener('click', function(){\r\n if (idx < questions.length - 1){ idx++; nextBtn.disabled = true; render(); }\r\n });\r\n render();\r\n}\r\n\/* QUIZ_BUILDERS *\/\r\nbuildQuiz('quizStage1','quizScore1','quizNext1',[\r\n {q:'Which constitutional provision sits at the apex of the framework, requiring Government contracts to be in writing by authorised officers?', opts:['Article 19(1)(g)','Article 299','Article 14','Article 282'], a:1, fb:'Article 299 mandates that contracts binding on the Government be executed in writing by specifically authorised officers.'},\r\n {q:'Under the GFR, direct engagement of a retired Government servant as a consultant is \u2014', opts:['A standard consultancy service','Excluded from \"consultancy services\" (Rule 177)','Permitted only through QCBS','Allowed against regular posts'], a:1, fb:'Rule 177 excludes direct engagement of retired Government servants; they may be engaged only for a specific task and duration with clear output goals.'},\r\n {q:'A supplier offering minimum 50% local content under the Make-in-India Order is \u2014', opts:['Class-II local supplier','Non-local supplier','Class-I local supplier','A preferred bidder'], a:2, fb:'A Class-I local supplier needs \u2265 50% local content; Class-II needs \u2265 20%. The margin of purchase preference is fixed at 20%.'},\r\n {q:'Procurements under the Make-in-India Order are exempt where the estimated value is below \u2014', opts:['Rs 5 lakh','Rs 10 lakh','Rs 50 lakh','Rs 2 crore'], a:0, fb:'Procurements below Rs 5 lakh are exempt, provided the procurement is not split to evade the Order (auditor certificate of local content is needed above Rs 10 crore).'},\r\n {q:'Under the MSE Policy, payment to an MSE supplier must be made within how many days of supply, failing which compound interest accrues?', opts:['30 days','45 days','60 days','90 days'], a:1, fb:'Chapter V of the MSMED Act, 2006 caps the agreed payment period at 45 days; delay attracts compound interest at three times the RBI bank rate.'},\r\n {q:'An MSE quoting within the L1 + 15% band (L1 being a non-MSE) may supply up to \u2014', opts:['15% of tendered value','20% of tendered value','25% of tendered value','50% of tendered value'], a:2, fb:'Such an MSE may supply up to 25% of total tendered value by matching L1; the 25% is distributed proportionately among qualifying MSEs.'},\r\n {q:'A \"start-up\" eligible for relaxation under Rule 173(i) must have turnover in any financial year not exceeding \u2014', opts:['Rs 25 crore','Rs 50 crore','Rs 100 crore','Rs 250 crore'], a:2, fb:'A DPIIT-recognised start-up is up to 10 years old with turnover not exceeding Rs 100 crore in any financial year.'},\r\n {q:'The Concept Paper \/ Procurement Proposal for services, which precedes all later stages, is referenced under \u2014', opts:['Rule 145','Rule 159','Rule 181','Rule 264'], a:2, fb:'Rule 181 covers in-principle approval based on the Procurement Proposal (Purpose + Outcome + Justification), the document that plays the role an Indent plays for goods.'}\r\n]);\r\nbuildQuiz('quizStage2','quizScore2','quizNext2',[\r\n {q:'When more than how many experts are required, a firm\\u2019s team should be used rather than individuals?', opts:['Two','Three','Five','Eight'], a:1, fb:'If more than three experts are required, the assignment should normally be undertaken by a team from a firm.'},\r\n {q:'A firm submits one bid individually and also participates as a JV partner in a second bid for the same assignment. The consequence is \u2014', opts:['Only the second bid is rejected','Both proposals are disqualified','The firm is debarred for two years','It is allowed if disclosed'], a:1, fb:'Under the conflicting-association rule, a firm may submit only one proposal; participating in more than one disqualifies all such proposals.'},\r\n {q:'How many distinct prohibited practices are listed under the Code of Integrity (CIPP)?', opts:['Four','Five','Six','Seven'], a:2, fb:'Six: corrupt, fraudulent, anti-competitive, coercive, conflict of interest, and obstructive practices.'},\r\n {q:'A gift inadvertently received in violation of the conduct rules must be \u2014', opts:['Retained if below the limit','Returned, or reported and deposited in the Toshakhana\/Treasury','Donated to charity','Declared only at year-end'], a:1, fb:'It must be returned, or else reported and deposited in the Toshakhana\/Treasury. Cash and cash-exchangeable vouchers are never acceptable, regardless of amount.'},\r\n {q:'Information for action before the Competition Commission of India must be filed under the signature of an officer of at least \u2014', opts:['Section Officer level','Under Secretary level','Joint Secretary level','Secretary level'], a:2, fb:'Such information is filed under the signature of a Joint Secretary-level officer.'},\r\n {q:'The maximum total tenure of an Independent External Monitor (IEM) is \u2014', opts:['Three years','Five years','Six years','Seven years'], a:1, fb:'An initial 3-year term, extendable by 2 years \\u2014 a maximum of 5 years. IEMs are below 70, CVC-approved, and their advice is not binding.'},\r\n {q:'Under Rule 151, a bidder convicted under the Prevention of Corruption Act may be debarred from any procuring entity for a period not exceeding \u2014', opts:['One year','Two years','Three years','Five years'], a:2, fb:'Conviction-based debarment extends to any procuring entity for up to three years; debarment for an integrity breach is limited to two years and to the single entity.'},\r\n {q:'Ordinarily, the minimum period for which a firm should be debarred is \u2014', opts:['One month','Three months','Six months','One year'], a:2, fb:'Ordinarily the period should be not less than six months. Debarment automatically extends to all allied and successor firms.'}\r\n]);\r\nbuildQuiz('quizStage3','quizScore3','quizNext3',[\r\n {q:'Which contract type is the preferred default, under which the proposal includes all prices with no arithmetical correction during evaluation?', opts:['Time-Based','Lump Sum (Firm Fixed Price)','Percentage','Indefinite Delivery'], a:1, fb:'The Lump Sum (Firm Fixed Price) contract is preferred; payments are linked to specified deliverables and no price adjustment is allowed during evaluation.'},\r\n {q:'An on-call contract for services of indefinite extent, analogous to a Rate Contract and awarded on the unit rate quoted, is a \u2014', opts:['Lump Sum contract','Percentage contract','Indefinite Delivery contract','Retainer-cum-success-fee contract'], a:2, fb:'The Indefinite Delivery (Price Agreement) contract is akin to a Rate\/Framework Contract; the provider is selected on the unit rate quoted and a maximum value should be set.'},\r\n {q:'The shortlist of consultants drawn up after an Expression of Interest should contain \u2014', opts:['Not fewer than 2 and not more than 5','Not fewer than 3 and not more than 8','Exactly 5','At least 10'], a:1, fb:'The shortlist should include not fewer than three (3) and not more than eight (8) eligible firms.'},\r\n {q:'Under Least Cost Selection (Rule 193), the winning bid among technically responsive offers is chosen \u2014', opts:['By weighting technical and cost scores','On lowest price (L-1) alone, with no weight to technical marks','On the highest technical score','By negotiation'], a:1, fb:'In LCS, after a minimum technical benchmark (normally 75\/100 or pass\/fail), the L-1 offer wins on price alone. It is the default method.'},\r\n {q:'In QCBS, the weightage assigned to the technical (quality) score should never exceed \u2014', opts:['70%','75%','80%','90%'], a:2, fb:'Typical weighting is 70% technical \/ 30% cost, but technical weight should never exceed 80%; complex assignments use 80\/20.'},\r\n {q:'Per the QCBS weighting table, highly complex \/ specialised assignments use a Quality\/Cost ratio of \u2014', opts:['50\/50','60\/40','75\/25','80\/20'], a:3, fb:'80\/20 for highly complex\/specialised assignments; moderate complexity 75\\u201365 \/ 35\\u201325; routine 60\\u201350 \/ 40\\u201350 (LCS appropriate).'},\r\n {q:'Awards made on a Single Source \/ nomination basis must be reported to the Secretary\/Board\/Chief Executive \u2014', opts:['Annually','Every quarter','Every month','Only on audit demand'], a:1, fb:'A report on nomination-basis awards is submitted every quarter; the audit committee may check at least 10% of such cases (Rule 194).'},\r\n {q:'Fixed Budget \\u2013 based Selection (FBS) is most appropriate when the services are \u2014', opts:['Highly complex and critical','Simple and\/or repetitive and precisely definable','Proprietary to a single firm','An emergency continuation of prior work'], a:1, fb:'FBS fixes the budget in the tender and suits simple\/repetitive, precisely definable services where the budget can be credibly estimated; the highest technical score within budget wins.'}\r\n]);\r\nbuildQuiz('quizStage4','quizScore4','quizNext4',[\r\n {q:'In procurement of consultancy, the Terms of Reference (ToR) is the analogue of which document used in procurement of goods?', opts:['The purchase order','The Description, Quantity and Technical Specification','The inspection certificate','The rate contract'], a:1, fb:'Rule 185 \\u2014 the ToR plays the role that Description, Quantity and Technical Specification play in procurement of goods.'},\r\n {q:'In a properly drafted consultancy ToR, the Detailed Scope of Work should describe \\u2014', opts:['The exact methodology to be followed','Only the activities, leaving methodology to the consultant','Individual staff hourly rates','The financial bid format'], a:1, fb:'The ToR should describe only the activities, not the approach or methodology, since devising the methodology is the consultant\\u2019s task (suggestions may be offered).'},\r\n {q:'An Inception Report is normally expected to be submitted about \\u2014', opts:['Two weeks after commencement','Six weeks after commencement','Three months after commencement','At the end of the assignment'], a:1, fb:'The Inception Report is submitted about six weeks after the commencement date and flags any ToR or staffing problems early.'},\r\n {q:'For a phased assignment, the Procuring Entity should take no more than how long to review and approve a draft interim report?', opts:['7 days','15 days','30 days','45 days'], a:1, fb:'The Procuring Entity should not take more than 15 days to review and approve draft interim reports, as they may affect later phases.'},\r\n {q:'Costs for a consultancy assignment are divided into which two broad categories?', opts:['Direct and indirect taxes','Fixed and variable overheads','Fee\/remuneration and reimbursable costs','Capital and revenue'], a:2, fb:'Costs are split into (a) fee or remuneration (per the contract type) and (b) reimbursable costs.'},\r\n {q:'Procurement of the consultancy may be initiated only after \\u2014', opts:['The consultant is mobilised','CA approval of the ToR and budgetary provision\/confirmation','The first progress report','The pre-bid conference'], a:1, fb:'The ToR must be compatible with the budget; CA approval and budgetary provision\/confirmation must precede initiation of procurement (4.3).'},\r\n {q:'Under Rule 160, a case may be exempted from mandatory e-procurement on grounds of national security only with \\u2014', opts:['The convenor\\u2019s note alone','Approval of the concerned Secretary and concurrence of the Financial Adviser','A GeM waiver','CVC clearance'], a:1, fb:'National-security\/strategic-confidentiality cases may be exempted with the concerned Secretary\\u2019s approval and the Financial Adviser\\u2019s concurrence; GeM procurements are outside these instructions.'}\r\n]);\r\nbuildQuiz('quizStage5','quizScore5','quizNext5',[\r\n {q:'Under Rule 183(ii), an openly advertised Expression of Interest is required for procurement of consultancy above \\u2014', opts:['Rs 10 lakh','Rs 25 lakh','Rs 50 lakh','Rs 1 crore'], a:1, fb:'Above Rs 25 lakh, shortlisting is by an openly advertised EoI (REoI) published on CPPP and GeM.'},\r\n {q:'For procurement of other (non-consultancy) services, an advertised RfP is normally required when the value is \\u2014', opts:['Above Rs 10 lakh','Above Rs 25 lakh','Above Rs 50 lakh','Always, regardless of value'], a:0, fb:'Other services use a single-stage process: above Rs 10 lakh an advertised RfP; below Rs 10 lakh the RfP may go to a selected shortlist.'},\r\n {q:'The short list of consultants for a competitive process should comprise \\u2014', opts:['At least 2 and at most 6','A minimum of 3 (Rule 184) and generally not more than 8','Exactly 5','At least 8'], a:1, fb:'Rule 184 requires a minimum of three firms, and the list should generally not exceed eight to avoid delays in RfP evaluation.'},\r\n {q:'No Global Tender Enquiry shall ordinarily be invited for procurements up to \\u2014', opts:['Rs 50 crore','Rs 100 crore','Rs 200 crore','Rs 500 crore'], a:2, fb:'Under Rule 161, no GTE shall be invited up to Rs 200 crore; exceptions need detailed justification and prior approval of the competent authority specified by DoE.'},\r\n {q:'A proposal to invite a GTE below the threshold must be approved at the level of \\u2014', opts:['The Section Officer','The Administrative Ministry with FA concurrence and Secretary approval','Any autonomous body','The CVC'], a:1, fb:'The proposal is submitted by the Administrative Ministry with the Financial Adviser\\u2019s concurrence and the concerned Secretary\\u2019s approval; proposals from individual offices\/CPSUs are not entertained.'},\r\n {q:'In the indicative qualification-criteria table, the highest weightage is assigned to \\u2014', opts:['Financial strength (15%)','General profile of key staff (25%)','Past experience \/ track record (60%)','Innovation (10%)'], a:2, fb:'Past experience\/track record carries 60%, key-staff profile 25% and financial strength 15%; firms securing the minimum (normally 75%) are shortlisted.'},\r\n {q:'Keeping the minimum qualifying turnover at 5\\u201310 times the estimated cost of the consultancy is described in the Manual as \\u2014', opts:['Mandatory','Prima facie high and to be kept only if adequately justified','Prohibited','The default for all tenders'], a:1, fb:'Such a level appears prima facie high and reduces competition; criteria should be reasonable, and high turnover kept only if adequately justified (5.2.10).'}\r\n]);\r\nbuildQuiz('quizStage6','quizScore6','quizNext6',[\r\n {q:'The proposal validity period specified in the Instructions to Consultants is normally \\u2014', opts:['30 days','45 days','60 days','90 days'], a:2, fb:'The ITC normally specifies a proposal validity of 60 days; it shall not indicate the budget except in Fixed Budget System selection.'},\r\n {q:'A price-adjustment (PVC) provision based on the CPI is included when a time-based or indefinite-delivery contract is expected to exceed \\u2014', opts:['6 months','12 months','18 months','24 months'], a:2, fb:'For time-based or indefinite-delivery contracts expected to exceed 18 months, a CPI-based price-adjustment provision is included; lump-sum contracts generally carry none.'},\r\n {q:'Advance payment to a private firm under a contract should not exceed \\u2014', opts:['20% of contract value','30% of contract value','40% of contract value','50% of contract value'], a:1, fb:'Advances are capped at 30% of contract value for private firms, 40% for a State\/Central agency or PSU, and six months\\u2019 amount for maintenance contracts \\u2014 with bank-guarantee safeguards.'},\r\n {q:'Under Rule 171, performance security is ordinarily \\u2014', opts:['1\\u20132% of contract value','5\\u201310% of contract value (reduced to 3% till 31.03.2023)','25% of contract value','Equal to the bid security'], a:1, fb:'Performance security is 5\\u201310% of contract value (temporarily reduced to 3% till 31.03.2023), furnished within 14 days of award, and is not required for contracts up to Rs 1 lakh.'},\r\n {q:'A Consultancy Evaluation Committee (CEC) under Rule 189 is constituted for cases with financial implications of more than \\u2014', opts:['Rs 1 lakh','Rs 5 lakh','Rs 10 lakh','Rs 25 lakh'], a:2, fb:'A CEC \\u2014 normally three members including the FA\/representative and a user representative (convenor) \\u2014 is constituted for cases over Rs 10 lakh.'},\r\n {q:'In the CEC rating scale, a proposal graded \\u201cGood (B)\\u201d is awarded \\u2014', opts:['Full marks','80% of full marks','60% of full marks','30% of full marks'], a:1, fb:'A = Very Good (full), B = Good (80%), C = Satisfactory (60%), D = Unsatisfactory (30%), E = Not Relevant (10%).'},\r\n {q:'For comparing financial proposals quoted in foreign currency, costs are converted to INR using the SBI BC selling rate on the \\u2014', opts:['Date of award','Date of opening the technical bids','Last date of bid submission','Date of the pre-bid meeting'], a:1, fb:'Conversion uses the State Bank of India BC selling rate on the date of opening the technical bids, as specified in the RfP (6.8.3).'},\r\n {q:'In QCBS, if two or more bids obtain the same final combined score, the tie is resolved in favour of the bid with the \\u2014', opts:['Lowest price','Highest technical score','Earliest submission','Largest turnover'], a:1, fb:'Under Rule 192, a tie in the final ranking is broken in favour of the bid with the highest technical score, which is ranked H-1.'}\r\n]);\r\nbuildQuiz('quizStage7','quizScore7','quizNext7',[\r\n {q:'Individual consultants are normally selected by comparing the qualifications of \\u2014', opts:['A single nominated candidate','At least three candidates','At least five candidates','All who apply, scored on cost'], a:1, fb:'Individual consultants are selected by comparison of qualifications of at least three candidates; the CEC awards marks for education and experience and may interview.'},\r\n {q:'When a shortlist for an assignment is composed entirely of NGOs, the selection method used is \\u2014', opts:['LCS','QCBS','SSS only','Percentage fee'], a:1, fb:'QCBS is followed for NGO shortlists, with criteria reflecting grassroots\/community-participation strengths; SSS is reserved for a remote single-NGO micro-assignment.'},\r\n {q:'When procurement agents are selected under QCBS, the cost element may be given a weight of up to \\u2014', opts:['20%','30%','50%','70%'], a:2, fb:'Cost may be weighted up to 50% for procurement and inspection agents; at that level finance dominates, so the quality threshold must be set sufficiently high.'},\r\n {q:'In contracts with suppliers, a clause requiring the supplier to pay for the inspecting officials\\u2019 travel, stay and hospitality is \\u2014', opts:['Standard and encouraged','To be discouraged as it compromises inspection independence','Mandatory for GTE','Allowed up to Rs 1 lakh'], a:1, fb:'Such provisions undermine the independence of inspection teams and must be strictly avoided.'},\r\n {q:'Auditors, who work under well-defined ToR and professional standards, are selected by \\u2014', opts:['QCBS','LCS','SSS','FBS'], a:1, fb:'Auditors are selected under the LCS system, with cost as the selection factor.'},\r\n {q:'For engaging financial advisors on a privatisation\/M&A transaction, the appropriate method and remuneration structure is \\u2014', opts:['LCS with a fixed fee','QCBS with a lump-sum retainer plus a success fee','Percentage contract only','SSS with no fee cap'], a:1, fb:'Such assignments use QCBS, with remuneration as a lump-sum retainer plus a success fee (preferably a percentage of the transaction value).'},\r\n {q:'In a public competition for a logo\/symbol design (Rule 196), the intellectual property rights of the winning design \\u2014', opts:['Remain with the designer','Rest with the sponsoring agency','Are shared equally','Pass to the CPPP'], a:1, fb:'The Competition Notice clearly stipulates that the IPR of the successful design rests with the sponsoring agency; the competition must keep the Official Languages Act and the Emblems & Names Act in view.'}\r\n]);\r\nbuildQuiz('quizStage8','quizScore8','quizNext8',[\r\n {q:'Monitoring of consultancy\/other-services contracts is governed by which rule, under which a Contract Monitoring Committee is formed?', opts:['Rule 185','Rule 189','Rule 195','Rule 206'], a:2, fb:'Rule 195 \\u2014 the Procuring Entity forms a CMC (at least three members including the user representative) and designates a counterpart Project Manager.'},\r\n {q:'A contract variation that increases the contract amount by more than 10% requires \\u2014', opts:['No approval','The CA\\u2019s prior approval','Only the consultant\\u2019s consent','CVC clearance'], a:1, fb:'Variations increasing the amount by more than 10% need the Competent Authority\\u2019s prior approval, and the amendment is published on the same e-procurement portal as the original tender.'},\r\n {q:'During execution, substitution of key personnel is ordinarily limited to not more than \\u2014', opts:['10% of key personnel','20% of key personnel','30% of key personnel','50% of key personnel'], a:2, fb:'Substitution is ordinarily limited to not more than 30% of total key personnel, with equally or better qualified replacements; remuneration is reduced by slabs (e.g. 5% \/ 10% \/ 15%).'},\r\n {q:'For an IT-project change request during the contract, the value should generally be within \\u2014', opts:['\\u00b15%','\\u00b110%','\\u00b115%','\\u00b125%'], a:2, fb:'IT-project change requests should generally be within plus\/minus 15%, decided through a Change Control Board whose technical and financial decisions are final.'},\r\n {q:'Where an arbitral award is challenged by the Ministry, the amount payable to the contractor against a Bank Guarantee is \\u2014', opts:['50% of the award','75% of the award','90% of the award','100% of the award'], a:1, fb:'Under Rule 227A, 75% of the arbitral award is paid against a Bank Guarantee into a designated escrow account, used first for lenders\\u2019 dues and project completion.'},\r\n {q:'If a force-majeure event prevents performance for a period exceeding how long, either party may terminate the contract?', opts:['30 days','60 days','90 days','180 days'], a:2, fb:'If force majeure prevents performance for more than 90 days, either party may terminate the contract without financial repercussion; force majeure suspends, not excuses, performance.'},\r\n {q:'Under a consultancy contract, the final claim must normally be submitted within \\u2014', opts:['30 days of completion','60 days of completion','90 days of completion','One year of completion'], a:1, fb:'The contract is closed the day after the completion date; the consultant should submit the final claim within 60 days of completing the assignment.'}\r\n]);\r\nbuildQuiz('quizStage9','quizScore9','quizNext9',[\r\n {q:'For matters not covered in the chapter on non-consultancy services, the Procuring Entity should refer to the \\u2014', opts:['Consultancy services provisions','Manual for Procurement of Goods','GeM handbook only','Arbitration Act'], a:1, fb:'The chapter is self-contained; for anything uncovered, refer to the Manual of Policies and Procedures for Procurement of Goods \\u2014 not the consultancy provisions.'},\r\n {q:'The repair and annual maintenance of mechanical, electrical or ICT assets should be handled on the lines of procurement of \\u2014', opts:['Works','Goods','Consultancy','Other services only'], a:1, fb:'AMC\/installation of mechanical, electrical or ICT assets is handled as Goods; civil-asset construction\/repair is handled as Works.'},\r\n {q:'The initial period of an outsourcing contract for other services is normally fixed at \\u2014', opts:['One year','Two years','Three years','Five years'], a:1, fb:'The initial contract period is normally two years, extendable by a further one year subject to satisfactory service.'},\r\n {q:'Extension beyond the initial two-year period may not be considered where the service provider has been levied a cumulative penalty of \\u2014', opts:['2% of contract value','5% of contract value','10% of contract value','15% of contract value'], a:1, fb:'Where a cumulative penalty of 5% of total contract value has been levied, extension beyond the initial two years is not considered.'},\r\n {q:'On GeM, direct purchase in the band above Rs 25,000 and up to Rs 5,00,000 must be from the lowest-priced seller of at least \\u2014', opts:['Two different manufacturers','Three different manufacturers','Five different manufacturers','Any single manufacturer'], a:1, fb:'In this band the buyer purchases from the GeM seller with the lowest price among at least three different manufacturers meeting requirements.'},\r\n {q:'The direct-purchase ceiling on GeM for automobiles is \\u2014', opts:['Rs 25,000','Rs 5 lakh','Rs 30 lakh','Rs 50 lakh'], a:2, fb:'For automobiles only, the direct-purchase ceiling is Rs 30 lakh instead of Rs 25,000.'},\r\n {q:'On GeM, if the consignee does not acknowledge receipt, a Deemed Provisional Receipt Certificate is auto-generated after \\u2014', opts:['48 hours','72 hours','96 hours','10 days'], a:2, fb:'The consignee should issue a PRC within 48 hours; if not acknowledged, a Deemed PRC auto-generates after 96 hours from delivery.'},\r\n {q:'In procurement of other (non-consultancy) services, the normal system of selection among technically responsive offers is \\u2014', opts:['QCBS','Lowest price (L-1)','LCS with 75% benchmark','Single Source Selection'], a:1, fb:'Under Rule 204, selection is normally on lowest price (L-1) among technically responsive offers, akin to procurement of Goods\/Works; SSS is used only in special circumstances.'}\r\n]);\r\n<\/script>\r\n\r\n<\/body>\r\n<\/html>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Manual for Procurement of Consultancy & Other Services \u2014 Study Notes (Ch 1\u20133) Manual for Procurement of Consultancy & Other 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