Manual for Procurement of Goods (2024) \u2014 Interactive Study Notes<\/title>\n<style>\n.elementor-section.elementor-section-stretched,\n .elementor-section-full_width,\n .elementor-container,\n .elementor-column,\n .elementor-column-wrap,\n .elementor-widget-wrap,\n .elementor-element {\n padding: 0 !important;\n margin: 0 !important;\n gap: 0 !important;\n }\n\n *, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; }\n :root {\n --navy:#10243f; --blue:#1c5da6; --sky:#2d8ecf; --teal:#0e8f7a;\n --amber:#c97c10; --red:#c0392b; --gold:#c89b0a; --purple:#7e3eb5;\n --slate:#41617f;\n --text:#1c2b3a; --muted:#5a6d80; --border:#dde6ef;\n --blueprint:#0c3b6e;\n }\n html { scroll-behavior: smooth; }\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; }\n a { text-decoration:none; color:inherit; }\n\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; }\n .hero::before { content:''; position:absolute; inset:0;\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);\n background-size:34px 34px; pointer-events:none; }\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; }\n .hero-inner { max-width:1120px; margin:0 auto; position:relative; z-index:1; }\n .hero-grid { display:grid; grid-template-columns:1fr 340px; gap:36px; align-items:center; }\n .hero-text { min-width:0; }\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; }\n .hero-illustration svg { width:100%; height:auto; display:block; }\n @keyframes heroFloat { 0%,100%{transform:translateY(0);} 50%{transform:translateY(-7px);} }\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); }\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); }\n .hero-sub { font-size:15px; opacity:0.93; margin-bottom:24px; max-width:740px; color:#fff; }\n .hero-pills { display:flex; flex-wrap:wrap; gap:8px; }\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); }\n\n .scope-banner { background:#fff7ec; border-bottom:1px solid #f0dcb8; padding:10px 48px; }\n .scope-inner { max-width:1120px; margin:0 auto; font-size:13px; color:#8a5a10; display:flex; align-items:center; gap:8px; }\n .scope-inner strong { color:#6b4408; }\n\n .breadcrumb-bar { background:#fff; border-bottom:1px solid var(--border); padding:10px 48px; }\n .breadcrumb-inner { max-width:1120px; margin:0 auto; font-size:12.5px; color:#aaa; display:flex; align-items:center; gap:6px; }\n .breadcrumb-inner a { color:var(--blue); }\n .breadcrumb-inner a:hover { text-decoration:underline; }\n .breadcrumb-inner .sep { color:#ddd; }\n\n .layout { max-width:1120px; margin:0 auto; padding:44px 48px 88px; display:grid; grid-template-columns:264px 1fr; gap:56px; align-items:start; }\n\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); }\n .chapter-heading-block:first-child { margin-top:0; }\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; }\n .chapter-heading-block h2 { font-family:'Crimson Pro',Georgia,serif; font-size:23px; font-weight:700; color:var(--navy); margin:0; }\n\n .section-heading-block { display:flex; align-items:center; gap:12px; margin:38px 0 14px; }\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; }\n .section-badge.amber{background:var(--amber);} .section-badge.teal{background:var(--teal);}\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);}\n .section-heading-block h3 { font-size:17px; font-weight:700; color:var(--navy); margin:0; }\n\n .article h4 { font-size:14.5px; font-weight:700; color:var(--navy); margin:22px 0 10px; }\n .article p { color:#2c3e50; margin-bottom:12px; text-align:justify; hyphens:auto; }\n .article strong { color:#111; }\n .layout > .article, .layout > .sidebar { min-width:0; }\n .table-wrap { max-width:100%; }\n\n .icon-list { list-style:none; margin:0 0 14px; display:flex; flex-direction:column; gap:8px; }\n .icon-list li { display:flex; align-items:flex-start; gap:10px; font-size:15px; color:#2c3e50; line-height:1.78; text-align:justify; }\n .icon-list li .ico { font-size:15px; flex-shrink:0; margin-top:4px; width:20px; text-align:center; }\n\n .callout { position:relative; padding:15px 18px 16px; margin:18px 0 22px; background:#f6faff;\n border:1px solid #e3edf8; border-left:3px solid var(--blue); border-radius:4px 9px 9px 4px;\n transition:box-shadow .18s ease, transform .18s ease; }\n .callout:hover { box-shadow:0 6px 20px -12px rgba(20,40,80,.35); }\n .callout > p { text-align:justify; }\n .callout > p:last-child { margin-bottom:0; }\n\n .callout-label { display:flex; align-items:center; gap:9px; margin-bottom:11px;\n font-family:'DM Sans',sans-serif; font-size:10.5px; font-weight:700;\n text-transform:uppercase; letter-spacing:0.11em; color:var(--blue); }\n .callout-label::before { content:'\\25C6'; flex:none; width:23px; height:23px; border-radius:6px;\n display:inline-grid; place-items:center; background:var(--blue); color:#fff;\n font-family:'JetBrains Mono',monospace; font-size:12px; line-height:1;\n box-shadow:0 1px 0 rgba(0,0,0,.12) inset, 0 2px 5px -2px rgba(0,0,0,.4); }\n\n .callout.blue { background:#f6faff; border-left-color:var(--blue); }\n .callout.teal { background:#f3fdf9; border-color:#cdeee0; border-left:3px dotted var(--teal); }\n .callout.teal .callout-label { color:var(--teal); } .callout.teal .callout-label::before{ content:'\\22A1'; background:var(--teal); }\n .callout.amber { background:#fffbf3; border-color:#f3e3c3; border-left-color:var(--amber); }\n .callout.amber .callout-label { color:#9a6a00; } .callout.amber .callout-label::before{ content:'\\0021'; background:var(--amber); }\n .callout.purple { background:#faf6ff; border-color:#e7dcf6; border-left-color:var(--purple); }\n .callout.purple .callout-label { color:var(--purple); } .callout.purple .callout-label::before{ content:'\\2756'; background:var(--purple); }\n .callout.slate { background:#f6f8fb; border:1px solid #dde5ee; border-left-width:1px; }\n .callout.slate .callout-label { color:var(--slate); } .callout.slate .callout-label::before{ content:'\\25B8'; background:var(--slate); }\n\n .callout.gold { background:#fffdf3; border:1.5px solid #e7cf8e; border-left-width:1.5px; border-radius:9px; }\n .callout.gold .callout-label { color:#8a6a00; } .callout.gold .callout-label::before{ content:'\\00A7'; background:var(--gold); color:#3a2c00; }\n .callout.gold::before, .callout.gold::after { content:''; position:absolute; width:9px; height:9px; border:1.5px solid var(--gold); }\n .callout.gold::before { top:6px; left:6px; border-right:0; border-bottom:0; }\n .callout.gold::after { bottom:6px; right:6px; border-left:0; border-top:0; }\n\n .callout.red { background:#fff7f6; border-color:#f3cfca; border-left:4px solid var(--red); overflow:hidden; }\n .callout.red .callout-label { color:var(--red); margin:-15px -18px 12px; padding:11px 18px;\n background:linear-gradient(90deg,#fdecea,#fff7f6); border-bottom:1px solid #f3cfca; }\n .callout.red .callout-label::before{ content:'\\2691'; background:var(--red); }\n\n .callout.purple { overflow:hidden; }\n .callout.purple::after { content:''; position:absolute; top:0; right:0; border-width:0 16px 16px 0;\n border-style:solid; border-color:#fff #fff var(--purple) var(--purple); opacity:.55; }\n\n @media (prefers-reduced-motion: reduce){ .callout{ transition:none; } }\n\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; }\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; }\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; }\n .def-card .def-text { font-size:15px; color:#1f3a55; line-height:1.78; position:relative; z-index:1; text-align:justify; }\n\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; }\n .compare-intro { margin:20px 0 -2px; font-size:14.5px; color:#42526b; }\n .table-wrap { overflow-x:auto; -webkit-overflow-scrolling:touch; margin:16px 0 24px; }\n .table-wrap > .compare-table { margin:0; }\n .compare-table thead tr { background:var(--navy); color:#fff; }\n .compare-table th { padding:12px 16px; text-align:left; font-size:12.5px; font-weight:700; }\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; text-align:justify; text-justify:inter-word; hyphens:none; }\n .compare-table tr:nth-child(even) td { background:#f8fbfd; }\n .compare-table td.label-cell { font-weight:700; color:var(--navy); background:#eef4fa !important; text-align:left; }\n .compare-table td.code-cell { font-family:'JetBrains Mono',monospace; font-weight:700; color:var(--blue); background:#eef4fa !important; text-align:center; }\n\n .info-row { display:grid; grid-template-columns:repeat(auto-fit,minmax(150px,1fr)); gap:14px; margin:18px 0 26px; }\n .info-card { background:#fff; border:1.5px solid var(--border); border-top:4px solid var(--blue); border-radius:12px; padding:18px 16px; }\n .info-card.t-teal { border-top-color:var(--teal); }\n .info-card.t-amber { border-top-color:var(--amber); }\n .info-card.t-gold { border-top-color:var(--gold); }\n .info-card.t-red { border-top-color:var(--red); }\n .info-card.t-purple { border-top-color:var(--purple); }\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; }\n .info-card .ic-cap { font-size:12.5px; color:#5a6b7d; line-height:1.5; }\n\n .parts-list { list-style:none; counter-reset:parts; margin:14px 0 22px; display:flex; flex-direction:column; gap:12px; }\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; }\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; }\n .parts-list.roman > li::before { content:counter(parts,lower-roman); font-size:12px; }\n .parts-list.decimal > li::before { content:counter(parts); font-size:13px; }\n .parts-list.teal > li::before{background:var(--teal);} .parts-list.amber > li::before{background:var(--amber);} .parts-list.blue > li::before{background:var(--blue);}\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);}\n .parts-list > li strong { color:var(--navy); }\n\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; }\n .highlight-box .hl-label { font-size:10px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--blue); margin-bottom:6px; }\n .highlight-box .hl-text { font-size:14.5px; color:#2c3e50; line-height:1.72; text-align:justify; }\n\n .flow { display:flex; flex-wrap:wrap; gap:0; margin:20px 0 28px; align-items:stretch; }\n .flow-step { flex:1 1 0; min-width:140px; background:#fff; border:1.5px solid var(--border); border-radius:12px; padding:14px 15px; position:relative; }\n .flow-step + .flow-step { margin-left:28px; }\n .flow-step + .flow-step::before { content:'\\2192'; position:absolute; left:-23px; top:50%; transform:translateY(-50%); color:var(--sky); font-size:19px; font-weight:700; }\n .flow-step .fs-num { font-family:'JetBrains Mono',monospace; font-size:10.5px; font-weight:700; color:var(--blue); letter-spacing:0.08em; margin-bottom:6px; }\n .flow-step .fs-title { font-size:13px; font-weight:700; color:var(--navy); margin-bottom:4px; line-height:1.3; }\n .flow-step .fs-text { font-size:12px; color:#5a6b7d; line-height:1.55; }\n .flow.teal .flow-step+.flow-step::before{color:var(--teal);} .flow.teal .fs-num{color:var(--teal);}\n .flow.amber .flow-step+.flow-step::before{color:var(--amber);} .flow.amber .fs-num{color:#9a6a00;}\n .flow.purple .flow-step+.flow-step::before{color:var(--purple);} .flow.purple .fs-num{color:var(--purple);}\n @media (max-width:720px){ .flow{flex-direction:column;} .flow-step+.flow-step{margin-left:0;margin-top:28px;} .flow-step+.flow-step::before{content:'\\2193';left:50%;top:-24px;transform:translateX(-50%);} }\n\n .cat-grid { display:grid; grid-template-columns:repeat(2,1fr); gap:14px; margin:20px 0 28px; }\n .cat-grid.three{grid-template-columns:repeat(3,1fr);} .cat-grid.four{grid-template-columns:repeat(4,1fr);}\n .cat-card { border-radius:10px; padding:18px 18px; border:1.5px solid var(--border); }\n .cat-card.a{border-color:#9dc3ec;background:#f0f7ff;} .cat-card.b{border-color:#7fd3c5;background:#f0fdf8;}\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;}\n .cat-label { font-size:9.5px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:6px; }\n .cat-title { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:8px; }\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);}\n .cat-card p { font-size:13px; color:#2c3e50; line-height:1.7; text-align:justify; }\n .cat-badge { display:inline-block; font-size:22px; font-weight:900; margin-bottom:6px; font-family:'JetBrains Mono',monospace; line-height:1; }\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);}\n\n .chapter-pane { display:none; animation:fadeIn 0.3s ease; }\n .chapter-pane.active { display:block; }\n @keyframes fadeIn { from{opacity:0;transform:translateY(4px);} to{opacity:1;transform:translateY(0);} }\n\n .sidebar { position:sticky; top:24px; max-height:calc(100vh - 48px); }\n .toc-card { background:#fff; border:1px solid var(--border); border-radius:12px; padding:16px 12px; max-height:calc(100vh - 48px); overflow-y:auto; }\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; }\n .toc-chapter { margin-bottom:8px; }\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; }\n .toc-chapter-header::-webkit-details-marker { display:none; }\n .toc-chapter-header:hover { background:#163457; }\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; }\n .toc-ch-title { flex:1; font-size:13.5px; font-weight:700; line-height:1.25; color:#fff; }\n .toc-ch-chev { font-size:10px; color:rgba(255,255,255,0.8); transition:transform 0.22s ease; flex-shrink:0; }\n .toc-chapter[open] > .toc-chapter-header { background:#163457; }\n .toc-chapter[open] > .toc-chapter-header .toc-ch-chev { transform:rotate(90deg); }\n .toc-sub-wrap { position:relative; margin:6px 0 6px 18px; padding-left:14px; }\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); }\n .toc-sub-list { list-style:none; }\n .toc-sub-list li { display:flex; align-items:flex-start; gap:6px; padding:5px 4px 5px 0; }\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; }\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; }\n .toc-sub-list a:hover { color:var(--blue); }\n .toc-sub-list a.active { color:var(--blue); font-weight:700; }\n .toc-sub-list .toc-app .toc-sub-num, .toc-sub-list .toc-app a { color:var(--purple); }\n .toc-sub-list .toc-app a:hover, .toc-sub-list .toc-app a.active { color:#5a2a8a; font-weight:700; }\n .toc-upcoming { margin-top:10px; padding:10px 12px; border:1px dashed #cdd8e4; border-radius:10px; }\n .toc-upcoming .tu-label { font-size:9px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:7px; }\n .toc-upcoming ul { list-style:none; display:flex; flex-direction:column; gap:5px; }\n .toc-upcoming li { font-size:11.5px; color:#9aa9b8; display:flex; gap:7px; align-items:baseline; line-height:1.35; }\n .toc-upcoming li .tu-num { font-family:'JetBrains Mono',monospace; font-weight:700; color:#b7c2cf; min-width:34px; }\n\n .recap { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); border-radius:14px; padding:28px 30px; margin:44px 0 0; color:#fff; }\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; }\n .recap table { width:100%; border-collapse:collapse; }\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; }\n .recap td { text-align:justify; text-justify:inter-word; hyphens:none; }\n .recap th, .recap td:first-child { text-align:left; }\n .recap th { font-size:11px; text-transform:uppercase; letter-spacing:0.1em; opacity:0.7; font-weight:700; }\n .recap td:first-child { font-weight:700; color:#ffd700; width:38%; }\n .recap td strong { color:#ffd95a; font-weight:700; }\n .recap td:first-child strong { color:inherit; }\n\n .ix { border:1.5px solid var(--border); border-radius:14px; margin:30px 0 28px; overflow:hidden; background:#fff; }\n .ix-head { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); color:#fff; padding:14px 20px; display:flex; align-items:center; gap:12px; }\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; }\n .ix-head h4 { font-size:14px; font-weight:700; color:#fff; margin:0; }\n .ix-body { padding:20px; }\n .ix-help { font-size:12.5px; color:var(--muted); margin:0 0 14px; }\n .quiz-q { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:14px; display:flex; gap:8px; align-items:baseline; }\n .quiz-q .q-tag { font-family:'JetBrains Mono',monospace; 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grid-template-columns:128px 1fr; gap:0; border-bottom:1px solid var(--border); }\n .kv-list > li:last-child { border-bottom:none; }\n .kv-list > li .kv-k { background:#eef4fa; padding:12px 14px; font-weight:700; font-size:12.5px; color:var(--navy); display:flex; align-items:center; }\n .kv-list > li .kv-v { padding:12px 16px; font-size:13.5px; color:#2c3e50; line-height:1.65; text-align:justify; }\n .kv-list > li .kv-v strong { color:var(--navy); }\n @media (max-width:520px){ .kv-list > li { grid-template-columns:1fr; } .kv-list > li .kv-k { border-bottom:1px solid var(--border); } }\n\n \/* \u2500\u2500\u2500\u2500\u2500 Tag legend chips \u2500\u2500\u2500\u2500\u2500 *\/\n .chip-row { display:flex; flex-wrap:wrap; gap:8px; margin:8px 0 20px; }\n .chip { font-size:11.5px; font-weight:600; padding:6px 12px; border-radius:20px; background:#eef4fa; color:var(--navy); border:1px solid #d6e3f0; }\n .chip b { font-family:'JetBrains Mono',monospace; color:var(--blue); }\n\n @media (max-width:880px) {\n .layout { grid-template-columns:1fr; gap:32px; padding:28px 24px 64px; }\n .sidebar { position:static; }\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr 1fr; }\n .hero { padding:48px 24px 44px; }\n .breadcrumb-bar, .scope-banner { padding:10px 24px; }\n .hero-grid { grid-template-columns:1fr; gap:24px; }\n .hero-illustration { width:250px; margin:0 auto; }\n }\n @media (max-width:640px) {\n .compare-table.wide { min-width:560px; }\n .table-wrap { border:1px solid var(--border); border-radius:10px;\n background:linear-gradient(90deg,#fff 30%,rgba(255,255,255,0)),\n linear-gradient(90deg,rgba(255,255,255,0),#fff 70%) 100% 0,\n radial-gradient(farthest-side at 0 50%,rgba(16,36,63,.14),transparent),\n radial-gradient(farthest-side at 100% 50%,rgba(16,36,63,.14),transparent) 100% 0;\n background-repeat:no-repeat; background-size:40px 100%,40px 100%,14px 100%,14px 100%;\n background-attachment:local,local,scroll,scroll; }\n .compare-table th { font-size:12px; padding:10px 12px; }\n .compare-table td { font-size:13px; padding:9px 12px; }\n }\n @media (max-width:520px) {\n .hero h1 { font-size:24px; }\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr; }\n .quiz-opts { grid-template-columns:1fr 1fr; }\n .hero-illustration { display:none; }\n .layout { padding:22px 16px 56px; gap:26px; }\n .breadcrumb-bar, .scope-banner { padding:9px 16px; }\n .hero { padding:40px 18px 36px; }\n .recap { padding:20px 18px; }\n .callout { padding:14px 15px 15px; }\n .def-card { padding:18px 18px; }\n .def-card::before { font-size:46px; }\n .info-row { grid-template-columns:1fr; }\n .section-heading-block { margin:30px 0 12px; }\n }\n<\/style>\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin>\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\">\n<\/head>\n<body>\n\n\n<div class=\"hero\">\n <div class=\"hero-inner hero-grid\">\n <div class=\"hero-text\">\n \n <h1>Manual for Procurement of Goods<\/h1>\n <p class=\"hero-sub\">The Government of India's <strong>guidance compendium for public procurement of goods<\/strong> \u2014 a portal into the hierarchy of statutory framework, the <strong>General Financial Rules (GFR) 2017<\/strong>, the Delegation of Financial Powers Rules (DFPR) and the preferential-procurement policies that govern how Central Government entities buy. This revised <strong>Second Edition (2024)<\/strong> incorporates clarifications up to June 2024, the MAPS 2020 review and refreshed Model Tender Documents. These notes open with the <strong>Principles & Policies<\/strong> and the <strong>Need-Assessment \/ Specification \/ Planning<\/strong> stage.<\/p>\n \n <\/div>\n <div class=\"hero-illustration\" aria-hidden=\"true\">\n <svg viewBox=\"0 0 340 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"A goods crate with a quality seal beside a tender document and a gavel\">\n <ellipse cx=\"170\" cy=\"262\" rx=\"132\" ry=\"12\" fill=\"rgba(0,0,0,0.18)\"\/>\n \n <g transform=\"rotate(-7 96 120)\">\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"120\" rx=\"6\" fill=\"#f4f8fd\" stroke=\"#0a2238\" stroke-width=\"2\"\/>\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"22\" rx=\"6\" fill=\"#1c5da6\"\/>\n <g stroke=\"#9db8d4\" stroke-width=\"3\" stroke-linecap=\"round\">\n <line x1=\"70\" y1=\"96\" x2=\"138\" y2=\"96\"\/>\n <line x1=\"70\" y1=\"110\" x2=\"138\" y2=\"110\"\/>\n <line x1=\"70\" y1=\"124\" x2=\"120\" y2=\"124\"\/>\n <line x1=\"70\" y1=\"138\" x2=\"138\" y2=\"138\"\/>\n <line x1=\"70\" y1=\"152\" x2=\"112\" y2=\"152\"\/>\n <\/g>\n <\/g>\n \n <rect x=\"118\" y=\"146\" width=\"116\" height=\"86\" rx=\"8\" fill=\"#c97c10\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M118 174 H234\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M176 146 V232\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n \n <rect x=\"160\" y=\"146\" width=\"32\" height=\"86\" fill=\"#e0a040\" opacity=\"0.55\"\/>\n \n <circle cx=\"176\" cy=\"138\" r=\"22\" fill=\"#0e8f7a\" stroke=\"#0a6354\" stroke-width=\"3\"\/>\n <path d=\"M165 138 l7 8 14 -17\" fill=\"none\" stroke=\"#fff\" stroke-width=\"4\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n \n <g transform=\"rotate(18 246 168)\">\n <rect x=\"222\" y=\"150\" width=\"48\" height=\"34\" rx=\"6\" fill=\"#fffaf0\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <circle cx=\"228\" cy=\"167\" r=\"4\" fill=\"none\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <text x=\"250\" y=\"176\" font-family=\"Georgia,serif\" font-size=\"20\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#10243f\">₹<\/text>\n <\/g>\n \n <g transform=\"rotate(38 256 96)\">\n <rect x=\"246\" y=\"58\" width=\"14\" height=\"48\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <rect x=\"236\" y=\"44\" width=\"34\" height=\"22\" rx=\"5\" fill=\"#1c5da6\" stroke=\"#13456f\" stroke-width=\"2\"\/>\n <\/g>\n <rect x=\"232\" y=\"118\" width=\"46\" height=\"9\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\n\n<div class=\"scope-banner\">\n <div class=\"scope-inner\">\n <span>▶<\/span>\n <span><strong>Complete manual \u2014 all ten chapters.<\/strong> Principles & Policies · Need Assessment & Planning · Supplier Relationship Management · Modes & Tendering · Bid Invitation · Securities, Prices & Payments · Bid Evaluation & Award · Procurements with Unique Features · Contract Management · Disposal of Scrap Goods.<\/span>\n <\/div>\n<\/div>\n\n\n<div class=\"breadcrumb-bar\">\n <div class=\"breadcrumb-inner\">\n <a href=\"#\">Home<\/a>\n <span class=\"sep\">›<\/span>\n <a href=\"#\">Notes<\/a>\n <span class=\"sep\">›<\/span>\n <span>Manual for Procurement of Goods (2nd Edition, 2024)<\/span>\n <\/div>\n<\/div>\n\n<div class=\"layout\">\n <aside class=\"sidebar\">\n <div class=\"toc-card\">\n <div class=\"toc-card-title\">Table of Contents<\/div>\n\n <details class=\"toc-chapter\" data-chapter=\"1\" open>\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 1<\/span>\n <span class=\"toc-ch-title\">Introduction \u2014 Principles & Policies<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">1.1<\/span><a href=\"#c1-rules\">Rules, Regulations & this Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.3<\/span><a href=\"#c1-applic\">Applicability of the Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.4<\/span><a href=\"#c1-categ\">Categorisation of Procurements<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.5<\/span><a href=\"#c1-auth\">Competent Authority & Financial Advisers<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.6<\/span><a href=\"#c1-fiver\">The Five R's of Procurement<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.7-9<\/span><a href=\"#c1-vfm\">Value for Money, Principles & Propriety<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.10<\/span><a href=\"#c1-infra\">Procurement Infrastructure at the Centre<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.11<\/span><a href=\"#c1-pref\">Reserved Items & Preference Policies<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.13-14<\/span><a href=\"#c1-cycle\">The Procurement Cycle & Nomenclature<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c1-recap\">Chapter 1 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"2\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 2<\/span>\n <span class=\"toc-ch-title\">Need Assessment, Specs & Planning<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">2.1<\/span><a href=\"#c2-need\">Need Assessment<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.1f<\/span><a href=\"#c2-cost\">Estimation of Cost<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2<\/span><a href=\"#c2-spec\">Formulation of Technical Specifications<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2.8<\/span><a href=\"#c2-green\">Green Procurement & Energy Labels<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.3<\/span><a href=\"#c2-sanction\">Sanctions, Approvals & Indents<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.4<\/span><a href=\"#c2-risk1\">Need \/ Specification Risks<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5<\/span><a href=\"#c2-plan\">Procurement Planning<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5.1<\/span><a href=\"#c2-cartel\">Cartel Mitigation & Large Procurement<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c2-recap\">Chapter 2 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"3\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 3<\/span>\n <span class=\"toc-ch-title\">Supplier Relationship Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">3.1<\/span><a href=\"#c3-srm\">What SRM Covers<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.2<\/span><a href=\"#c3-cipp\">Code of Integrity (CIPP)<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.3<\/span><a href=\"#c3-pact\">Integrity Pact<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.4<\/span><a href=\"#c3-grievance\">Grievances & Redressal<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.5<\/span><a href=\"#c3-conduct\">Conduct of Public Servants<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.6<\/span><a href=\"#c3-register\">Registration & Pre-qualification<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.7<\/span><a href=\"#c3-debar\">Debarment of Suppliers<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c3-recap\">Chapter 3 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"4\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 4<\/span>\n <span class=\"toc-ch-title\">Modes of Procurement & Tendering<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">4.1<\/span><a href=\"#c4-modes\">Five Families of Mode<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.2-5<\/span><a href=\"#c4-advertised\">Advertised \u2014 OTE, GTE, RC, eRA<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.6-9<\/span><a href=\"#c4-restricted\">Pre-qualification, LTE & SLTE<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.10-13<\/span><a href=\"#c4-nomination\">Nomination & Shopping Modes<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.14-16<\/span><a href=\"#c4-tendering\">Tendering Systems & EoI<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.17<\/span><a href=\"#c4-channels\">Channels & GeM Purchase<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c4-recap\">Chapter 4 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"5\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 5<\/span>\n <span class=\"toc-ch-title\">Bid Invitation Process<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">5.1<\/span><a href=\"#c5-tdoc\">Tender Document & MTDs<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.1.3<\/span><a href=\"#c5-filters\">Eligibility, Qualification & Evaluation<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.2<\/span><a href=\"#c5-publish\">Publication & Pre-bid<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.3<\/span><a href=\"#c5-open\">Opening of Bids<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c5-recap\">Chapter 5 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"6\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 6<\/span>\n <span class=\"toc-ch-title\">Securities, Prices & Payments<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">6.1<\/span><a href=\"#c6-sec\">Forms of Security<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.1.3<\/span><a href=\"#c6-isb\">Insurance Surety Bond & e-BG<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.5<\/span><a href=\"#c6-advance\">Advance Payments<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.6<\/span><a href=\"#c6-prices\">Firm vs Variable Price<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c6-recap\">Chapter 6 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"7\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 7<\/span>\n <span class=\"toc-ch-title\">Bid Evaluation & Award<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">7.1<\/span><a href=\"#c7-eval\">Evaluation & Tender Committee<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3<\/span><a href=\"#c7-prelim\">Preliminary Examination<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3.2<\/span><a href=\"#c7-discrep\">Discrepancies & Deviations<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.6<\/span><a href=\"#c7-award\">Award, Reasonableness & Negotiation<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c7-recap\">Chapter 7 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"8\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 8<\/span>\n <span class=\"toc-ch-title\">Procurements with Unique Features<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">8.1<\/span><a href=\"#c8-emerg\">Emergencies & Disaster Management<\/a><\/li>\n <li><span class=\"toc-sub-num\">8.3<\/span><a href=\"#c8-capital\">Capital Goods, AMC, NPV & Turnkey<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c8-recap\">Chapter 8 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"9\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 9<\/span>\n <span class=\"toc-ch-title\">Contract Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">9.1<\/span><a href=\"#c9-cm\">Lifecycle & Purpose<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.2<\/span><a href=\"#c9-qty\">Scope & Quantity Control<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.3<\/span><a href=\"#c9-time\">Time Control & LD<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.4<\/span><a href=\"#c9-quality\">Quality & Inspection<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.8<\/span><a href=\"#c9-breach\">Breach & Termination<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.9<\/span><a href=\"#c9-dispute\">Dispute Resolution & Closure<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c9-recap\">Chapter 9 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"10\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 10<\/span>\n <span class=\"toc-ch-title\">Disposal of Scrap Goods<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">10.1<\/span><a href=\"#c10-scrap\">What Counts as Scrap<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.2<\/span><a href=\"#c10-survey\">Classification & Survey<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.5<\/span><a href=\"#c10-process\">The Disposal Workflow<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c10-recap\">Chapter 10 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <\/div>\n <\/aside>\n\n <main class=\"article\">\n \n <section class=\"chapter-pane active\" id=\"pane-ch1\" data-chapter=\"1\">\n\n <div class=\"chapter-heading-block\" id=\"c1-rules\">\n <span class=\"chapter-badge\">CH 1 \u00b7 PRINCIPLES & POLICIES<\/span>\n <h2>Introduction \u2014 Principles and Policies<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What this Manual is (1.1)<\/div>\n <div class=\"def-text\">\n Ministries, Departments, attached\/subordinate offices, local bodies, PSEs and other Government (including autonomous) bodies \u2014 collectively <strong>\"Procuring Entities\"<\/strong> \u2014 spend a large part of their budget buying goods, works and services. This Manual is not a complete compendium of all rules; it is a <strong>portal<\/strong> into the area, drawing attention to the basic norms of public procurement of goods. Common-use goods and services available on GeM must be procured through it (<strong>Rule 149, GFR 2017<\/strong>); for what is not on GeM, Ministries have full powers to make their own arrangements under the DFPR.\n <\/div>\n <\/div>\n\n <p>Procurement is governed not by a single law but by a layered hierarchy \u2014 the <strong>\"Procurement Guidelines\"<\/strong> of Annexure 1. There is <strong>no exclusive procurement statute<\/strong> in the Central Government; the rules live in the GFR and orders beneath the Constitution.<\/p>\n\n <p>Public procurement rests on a five-level hierarchy of authority, from the highest source downward:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Constitution<\/strong> \u2014 Article 299 (contracts made in the President's name), with Articles 14 and 19(1)(g) underpinning fairness and free trade.<\/li>\n <li><strong>Mercantile laws<\/strong> \u2014 the Indian Contract Act 1872 and the Sale of Goods Act 1930.<\/li>\n <li><strong>Rules & Regulations<\/strong> \u2014 GFR 2017 (Chapters 6\u20139), the DFPR and standing Government orders.<\/li>\n <li><strong>Manuals of Procurement<\/strong> \u2014 Goods, Works, and Consultancy \/ Non-consultancy Services.<\/li>\n <li><strong>Procurement & Model Tender Documents<\/strong> \u2014 the operational documents used for each case.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The hierarchy of procurement authority (1.1)<\/div>\n <svg viewBox=\"0 0 680 350\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pyramid of procurement authority from the Constitution down to procurement documents\">\n<polygon points=\"340,16 426,80 254,80\" fill=\"#10243f\"\/>\n<text x=\"340\" y=\"64\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Constitution<\/text>\n<polygon points=\"250,86 430,86 464,142 216,142\" fill=\"#163e6b\"\/>\n<text x=\"340\" y=\"119\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Mercantile Laws<\/text>\n<polygon points=\"212,148 468,148 506,206 174,206\" fill=\"#1c5da6\"\/>\n<text x=\"340\" y=\"182\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Rules & Regulations<\/text>\n<polygon points=\"170,212 510,212 550,270 130,270\" fill=\"#2d8ecf\"\/>\n<text x=\"340\" y=\"246\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Manuals of Procurement<\/text>\n<polygon points=\"126,276 554,276 594,332 86,332\" fill=\"#0e8f7a\"\/>\n<text x=\"340\" y=\"309\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Tender Documents<\/text>\n<\/svg>\n <div class=\"fig-cap\">At the apex, <strong>Article 299<\/strong> requires Government contracts to be in writing by authorised officers; each lower tier adds operational detail. Restrictions under <strong>Rule 144(xi)<\/strong> (land-border bidders) and orders like Make-in-India sit in the Rules tier.<\/div>\n <\/div>\n\n <p>The <strong>Procurement Policy Division (PPD), Department of Expenditure<\/strong> is the nodal authority for revising, interpreting and clarifying this Manual (1.2).<\/p>\n\n <div class=\"section-heading-block\" id=\"c1-applic\">\n <span class=\"section-badge teal\">\u00a7 1.3<\/span>\n <h3>Applicability \u2014 who and what the Manual covers<\/h3>\n <\/div>\n\n <p>The Manual applies to the procurement of all <strong>\"Goods\"<\/strong> as defined in the Procurement Glossary. What distinguishes goods from works and services is the ability to <strong>precisely describe the technical specification and scope<\/strong>. The other manuals are generically based on this one, which therefore applies <em>mutatis mutandis<\/em> wherever they are silent.<\/p>\n\n <ol class=\"parts-list decimal teal\">\n <li><strong>Core Government (Rule 1, GFR).<\/strong> All Central Government Ministries\/Departments and attached\/subordinate bodies \u2014 and autonomous bodies, except where their Government-approved bye-laws provide separate guidelines.<\/li>\n <li><strong>CPSEs & substantially-financed bodies.<\/strong> CPSEs, PSBs, PSICs, public financial institutions, constitutional\/statutory bodies and public academic institutions \u2014 except deviations approved by their competent authority (e.g. Board of Directors).<\/li>\n <li><strong>Indian Missions & CPSE units abroad.<\/strong> May adopt GFR financial thresholds in the host currency using the latest <strong>INR\u2013PPP conversion rate<\/strong> published by the IMF (reviewed annually).<\/li>\n <li><strong>Outsourced procurement.<\/strong> Still applies when the entity outsources, bundles, or uses a procurement support agency\/agent.<\/li>\n <\/ol>\n\n <p class=\"compare-intro\">Two situations sit <strong>outside<\/strong> the guidelines \u2014 worth separating from the coverage rules above.<\/p>\n <div class=\"cat-grid\">\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 1<\/div><div class=\"cat-title\">Own subsidiaries \/ JVs<\/div><p>Procurement for own use from a subsidiary or JV in which the entity holds a <strong>controlling share<\/strong>.<\/p><\/div>\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 2<\/div><div class=\"cat-title\">IPF-funded projects<\/div><p>World Bank <strong>Investment Project Financing (IPF)<\/strong> and similar IFA instruments follow the IFA's own procedures (<strong>Rule 264, GFR 2017<\/strong>). PforR \/ Results-based lending apply the guidelines as agreed in the legal agreements.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-categ\">\n <span class=\"section-badge amber\">\u00a7 1.4<\/span>\n <h3>Categorisation of procurements<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Tangible \u00b7 own premises<\/div><div class=\"cat-title\">Goods<\/div><p>Made on the <strong>supplier's premises<\/strong> (other than installation). May include incidental works\/services \u2014 transport, insurance, installation, training.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Tangible \u00b7 buyer's site<\/div><div class=\"cat-title\">Works<\/div><p>Executed on the <strong>procuring entity's premises<\/strong> (other than pre-fabricated parts). May include incidental goods, and vice-versa.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Intangible output<\/div><div class=\"cat-title\">Services<\/div><p>Distinguished by <strong>intangible output<\/strong>. Consultancy = predominant intellectual input, one-off; Non-consultancy = routine, standardised, measurable.<\/p><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">In case of doubt \u2014 how to classify (1.4)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision tree for classifying a procurement\">\n<defs><marker id=\"t1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"250\" y=\"24\" width=\"160\" height=\"46\" rx=\"10\" fill=\"#10243f\"\/>\n<text x=\"330.0\" y=\"52.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">What is procured?<\/text>\n<line x1=\"330\" y1=\"72\" x2=\"135\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"330\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"525\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<rect x=\"60\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"135.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Goods<\/text>\n<rect x=\"255\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Works<\/text>\n<rect x=\"450\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"525.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Services<\/text>\n<rect x=\"180\" y=\"216\" width=\"300\" height=\"50\" rx=\"10\" fill=\"#fff\" stroke=\"#c97c10\" stroke-width=\"1.8\"\/>\n<text x=\"330\" y=\"240\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">In doubt?<\/text>\n<text x=\"330\" y=\"258\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" fill=\"#5a6b7d\">Default to the Goods Manual<\/text>\n<\/svg>\n <div class=\"fig-cap\">For <strong>composite contracts<\/strong> mixing elements, the <strong>primary intention<\/strong> decides the category \u2014 irrespective of the relative values. IT projects are usually handled as consultancy services.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-auth\">\n <span class=\"section-badge purple\">\u00a7 1.5<\/span>\n <h3>Competent authority & consultation with Financial Advisers<\/h3>\n <\/div>\n\n <p>The first step is the <strong>decision to procure<\/strong>, with the exact or approximate expenditure. A competent authority accords <strong>administrative sanction<\/strong> under the DFPR, following the Procurement Guidelines (<strong>Rule 145, GFR 2017<\/strong>). Each entity may issue a <strong>Schedule of Procurement Powers (SoPP)<\/strong> adding detail to the DFPR delegations. Being a financial decision, it generally requires consultation of the <strong>Financial Adviser<\/strong> (Para 19, Charter for FA, 2023):<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:41%\"><col style=\"width:41%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Normal Procedure<\/th><th>Special Procedure<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Default?<\/td><td><strong>Yes<\/strong> \u2014 applies unless the Department's Secretary approves a special procedure with DoE concurrence.<\/td><td>Adopted only with the <strong>prior concurrence of Secretary (Expenditure)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">FA\/IFD consultation<\/td><td>Concurrence of the FA\/IFD on <strong>all procurement matters<\/strong>, except where re-delegation is within permissible limits.<\/td><td>A <strong>tailored level<\/strong> of involvement, defined by financial thresholds, stages or types of procurement.<\/td><\/tr>\n <tr><td class=\"label-cell\">Scope<\/td><td colspan=\"2\">Applies only to Ministries\/Departments under the FA Charter; <strong>CPSEs may devise their own systems<\/strong>. Payments under approved contracts need no IFD consultation, except where in relaxation\/variation of approved conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-fiver\">\n <span class=\"section-badge blue\">\u00a7 1.6<\/span>\n <h3>Basic aims \u2014 the Five R's of Procurement<\/h3>\n <\/div>\n\n <p>Every procurement seeks the <strong>optimal balance<\/strong> \u2014 \"right\" means optimal, not cheapest or most \u2014 across five parameters.<\/p>\n\n <p>The \"Five R's\" are the objectives every procurement balances: <strong>Right Quality<\/strong>, <strong>Right Quantity<\/strong>, <strong>Right Price<\/strong>, <strong>Right Time & Place<\/strong>, and the <strong>Right Source<\/strong> \u2014 none pursued so far as to defeat the others.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The Five R's around the optimal balance (1.6)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pentagon of the five R's of procurement\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"205\" x2=\"300.0\" y2=\"77.0\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"421.7\" y2=\"165.4\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"375.2\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"224.8\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"178.3\" y2=\"165.4\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"205\" r=\"56\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">FIVE<\/text>\n<text x=\"300\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">R’s<\/text>\n<circle cx=\"300.0\" cy=\"77.0\" r=\"46\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"300.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#1c5da6\">R1<\/text>\n<text x=\"300.0\" y=\"91.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quality<\/text>\n<circle cx=\"421.7\" cy=\"165.4\" r=\"46\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"421.7\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#0e8f7a\">R2<\/text>\n<text x=\"421.7\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quantity<\/text>\n<circle cx=\"375.2\" cy=\"308.6\" r=\"46\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"375.2\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c97c10\">R3<\/text>\n<text x=\"375.2\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Price<\/text>\n<circle cx=\"224.8\" cy=\"308.6\" r=\"46\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"224.8\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#7e3eb5\">R4<\/text>\n<text x=\"224.8\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Time\/Place<\/text>\n<circle cx=\"178.3\" cy=\"165.4\" r=\"46\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"178.3\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c0392b\">R5<\/text>\n<text x=\"178.3\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Source<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Quality<\/strong> refines into utility\/value; <strong>Price<\/strong> into life-cycle cost (not the cheapest); <strong>Source<\/strong> must have the right financial capacity and technical capability shown by past performance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-vfm\">\n <span class=\"section-badge teal\">\u00a7 1.7–1.9<\/span>\n <h3>Value for Money, fundamental principles & financial propriety<\/h3>\n <\/div>\n\n <p>The concept of price is refined into <strong>Total Cost of Ownership (TCO) \/ Life Cycle Cost (LCC) \/ Whole-of-Life (WOL)<\/strong>, and quality into <strong>utility\/value<\/strong>. Together they give <strong>Value for Money (VfM)<\/strong> \u2014 the effective, efficient and economical use of resources, weighing costs, benefits, risks and non-price attributes. <strong>Price alone is not VfM.<\/strong><\/p>\n\n <p>The cost of ownership runs well beyond the purchase price. Over the whole life it comprises <strong>acquisition<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance<\/strong>, and <strong>disposal<\/strong> costs.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Whole-of-Life cost \u2014 beyond the purchase price (1.7)<\/div>\n <svg viewBox=\"0 0 660 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Stacked bar showing whole of life cost components\">\n<rect x=\"40\" y=\"70\" width=\"162\" height=\"70\" fill=\"#1c5da6\"\/>\n<text x=\"121\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Acquisition<\/text>\n<rect x=\"202\" y=\"70\" width=\"174\" height=\"70\" fill=\"#0e8f7a\"\/>\n<text x=\"289\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Operation<\/text>\n<rect x=\"376\" y=\"70\" width=\"174\" height=\"70\" fill=\"#c97c10\"\/>\n<text x=\"463\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Maintenance<\/text>\n<rect x=\"550\" y=\"70\" width=\"70\" height=\"70\" fill=\"#41617f\"\/>\n<text x=\"585\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<text x=\"40\" y=\"50\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">Total Cost of Ownership over the whole life<\/text>\n<line x1=\"40\" y1=\"155\" x2=\"620\" y2=\"155\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<text x=\"40\" y=\"175\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#1c5da6\">purchase<\/text>\n<text x=\"620\" y=\"175\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#41617f\">end of life<\/text>\n<\/svg>\n <div class=\"fig-cap\">VfM is achieved through the <strong>widest competition<\/strong> \u2014 optimal description of need, value-engineered specifications, appropriate packaging\/slicing, and the right mode of procurement.<\/div>\n <\/div>\n\n <p class=\"compare-intro\"><strong>The five Fundamental Principles of Public Procurement (1.8)<\/strong> \u2014 GFR 2017, Rule 144 organises every authority's duties into five principles they must abide by and be accountable for.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table\">\n <colgroup><col style=\"width:26%\"><col style=\"width:74%\"><\/colgroup>\n <thead><tr><th>Principle<\/th><th>What it requires<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Transparency<\/td><td>Fairness, equality, competition and appeal rights through <strong>simultaneous, symmetric, unrestricted<\/strong> information; do only what was pre-declared in the published documents; publish on <strong>GeM & CPPP<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Professionalism<\/td><td>Economy, efficiency, effectiveness and integrity; avoid wasteful\/dilatory practices; comply with the <strong>Code of Integrity (CIPP)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Broader Obligations<\/td><td>Social\/economic goals \u2014 Make-in-India, MSE\/weaker-section reservation, Start-up support, and <strong>land-border restrictions under Rule 144(xi)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Extended Legal Responsibilities<\/td><td>Beyond mercantile law \u2014 courts review public procurement as a function of the <strong>State<\/strong>; plus RTI Act, Prevention of Corruption Act, etc.<\/td><\/tr>\n <tr><td class=\"label-cell\">Public Accountability<\/td><td>Answerable to the Legislature, CVC, CAG, CBI; <strong>each transaction<\/strong> scrutinised in isolation; record considerations at every stage (Rule 144(viii)) and retain audit trails.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>Like any Government expenditure, procurement must meet the <strong>Standards (Canons) of Financial Propriety \u2014 Rule 21, GFR 2017<\/strong>:<\/p>\n <ol class=\"parts-list roman gold\">\n <li><strong>Ordinary prudence.<\/strong> Exercise the same vigilance over public money as a person of ordinary prudence would over their own.<\/li>\n <li><strong>Not more than the occasion demands.<\/strong> Expenditure should not prima facie exceed what the occasion requires.<\/li>\n <li><strong>No self-advantage.<\/strong> No authority sanctions expenditure to its own direct or indirect advantage.<\/li>\n <li><strong>No undue favour.<\/strong> No spending for a particular person\/section unless a claim is enforceable in law or it follows a recognised policy\/custom.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c1-infra\">\n <span class=\"section-badge slate\">\u00a7 1.10<\/span>\n <h3>Public procurement infrastructure at the Centre<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">1.10.1<\/div><div class=\"cat-title\">PPD<\/div><p><strong>Procurement Policy Division<\/strong> (DoE) \u2014 drives uniformity through best practices, guidance, manuals and Model Tender Documents. It does <strong>not<\/strong> centralise procurement.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">1.10.2<\/div><div class=\"cat-title\">CPPP<\/div><p><strong>Central Public Procurement Portal<\/strong> (NIC) \u2014 single-point access; <strong>mandatory<\/strong> publication of tenders and contracts; e-publishing + e-procurement modules.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">1.10.3<\/div><div class=\"cat-title\">GeM<\/div><p><strong>Government e-Marketplace<\/strong> \u2014 the National Public Procurement Portal; <strong>paperless, contactless, cashless<\/strong>; mandatory for common-use goods (Rule 149).<\/p><\/div>\n <\/div>\n\n <p>Four statutory bodies provide external oversight of procurement; their reach and powers differ sharply.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:26%\"><col style=\"width:56%\"><\/colgroup>\n <thead><tr><th>Body<\/th><th>Statute<\/th><th>Role & distinctive power<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">CAG<\/td><td>Articles 149\u2013151<\/td><td><strong>Supreme Audit Institution of India<\/strong>; compliance, financial, performance, thematic & IT audits; may inspect any audited office, examine transactions and decide the audit's extent & manner.<\/td><\/tr>\n <tr><td class=\"label-cell\">Lokpal \/ Lokayukta<\/td><td>Lokpal & Lokayukta Act, 2013 (amd. 2016)<\/td><td>Anti-corruption <strong>ombudsman<\/strong>; covers Union Ministers (incl. PM), MPs, public servants and FCRA NGOs above <strong>\u20b910 lakh\/yr<\/strong>; <strong>1 Chair + up to 8 members<\/strong> (4 judicial); may refer cases to the CBI.<\/td><\/tr>\n <tr><td class=\"label-cell\">CVC<\/td><td>CVC Act, 2003<\/td><td>Apex oversight; <strong>recommendatory, no punitive power<\/strong>; has <strong>superintendence over the CBI<\/strong> for PC-Act cases; two Chief Technical Examiners watch procurement; entities appoint a CVO in consultation with CVC.<\/td><\/tr>\n <tr><td class=\"label-cell\">CBI (DSPE)<\/td><td>Delhi Special Police Establishment Act, 1946<\/td><td>Only agency with <strong>police powers<\/strong> (arrest, seizure); prosecutes under the <strong>Prevention of Corruption Act, 1988<\/strong>; needs prior approval to probe officers of <strong>Joint Secretary & above<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-pref\">\n <span class=\"section-badge gold\">\u00a7 1.11<\/span>\n <h3>Reserved items & purchase \/ price preference policies<\/h3>\n <\/div>\n\n <p>The Central Government may, by notification, mandate procurement from a category of bidders or grant <strong>preference<\/strong> to promote local manufacture (<strong>Rule 153, GFR 2017<\/strong>). Any reservation\/preference must appear in the <strong>NIT<\/strong> and Instructions to Bidders. The numbers that drive these policies:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">20%<\/div><div class=\"st-cap\"><strong>Khadi \/ handloom<\/strong> textiles from KVIC & clusters (Rule 153(i))<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">358<\/div><div class=\"st-cap\">Items reserved for <strong>exclusive purchase from MSEs<\/strong> (incl. 8 handicrafts)<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">25%<\/div><div class=\"st-cap\">Min. annual <strong>MSE procurement<\/strong> target (Rule 153(ii))<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">4% \/ 3%<\/div><div class=\"st-cap\">Sub-targets \u2014 <strong>SC\/ST-owned<\/strong> & <strong>women-owned<\/strong> MSEs<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 + 15%<\/div><div class=\"st-cap\"><strong>MSE<\/strong> price band to match L1 (supply up to 25%)<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">50% \/ 20%<\/div><div class=\"st-cap\"><strong>MII local content<\/strong> \u2014 Class-I \/ Class-II minimum<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">L1 + 20%<\/div><div class=\"st-cap\"><strong>MII margin<\/strong> of purchase preference<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b95 L<\/div><div class=\"st-cap\">MII <strong>exemption<\/strong> below this value (no splitting)<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b910 cr<\/div><div class=\"st-cap\">Above this, local content needs a <strong>CA\/cost-auditor certificate<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">45 days<\/div><div class=\"st-cap\">MSMED Act payment limit; delay \u2192 <strong>3\u00d7 RBI bank-rate<\/strong> interest<\/div><\/div>\n <\/div>\n\n <p>The <strong>Make-in-India (MII), Order 2017<\/strong> preference logic depends on whether the lowest bidder (L1) is a Class-I local supplier:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Make-in-India purchase-preference flow \u2014 divisible procurement (1.11.3)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision flow for Make in India purchase preference\">\n<defs><marker id=\"m1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"m2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<polygon points=\"330,30 470,95 330,160 190,95\" fill=\"#fff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"330\" y=\"90\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Is L1 a<\/text>\n<text x=\"330\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Class-I supplier?<\/text>\n<line x1=\"470\" y1=\"95\" x2=\"558\" y2=\"95\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m2)\"\/>\n<text x=\"500\" y=\"86\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#0e8f7a\">YES<\/text>\n<rect x=\"560\" y=\"72\" width=\"92\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"606\" y=\"94\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">Award to<\/text>\n<text x=\"606\" y=\"109\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">L1<\/text>\n<line x1=\"330\" y1=\"160\" x2=\"330\" y2=\"203\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m1)\"\/>\n<text x=\"342\" y=\"185\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">NO<\/text>\n<rect x=\"150\" y=\"208\" width=\"360\" height=\"58\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"232\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Offer Class-I lowest the chance to<\/text>\n<text x=\"330\" y=\"251\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">match L1 (purchase preference)<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Class-II suppliers get no preference.<\/strong> Local content is about value added in India \u2014 <em>not<\/em> the nationality of the firm. A false local-content claim attracts a penalty up to <strong>10% of contract value<\/strong> (contract is not terminated).<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Other preference policies in brief<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">LAND BORDER<\/span><span class=\"nl-text\"><strong>Rule 144(xi)<\/strong> \u2014 bidders from a country sharing a land border with India must be <strong>registered with the competent authority<\/strong>, on national-security grounds (credit-line \/ exempted cases apart).<\/span><\/li>\n <li><span class=\"nl-tag\">START-UP<\/span><span class=\"nl-text\">DPIIT-recognised <strong>Start-ups<\/strong> are exempt from bid security and may get relaxed prior turnover\/experience, subject to meeting quality & technical specifications.<\/span><\/li>\n <li><span class=\"nl-tag\">DMI&SP<\/span><span class=\"nl-text\"><strong>Domestically Manufactured Iron & Steel Products Policy, 2019<\/strong> \u2014 purchase preference for domestic iron & steel, overseen by a Standing Committee under the Ministry of Steel.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-cycle\">\n <span class=\"section-badge red\">\u00a7 1.13–1.14<\/span>\n <h3>The public procurement cycle & the nomenclature conundrum<\/h3>\n <\/div>\n\n <p>Procurement runs as a repeating five-stage cycle: <strong>Need<\/strong> \u2192 <strong>Bid Invitation<\/strong> \u2192 <strong>Evaluate & Award<\/strong> \u2192 <strong>Contract Management<\/strong> \u2192 <strong>Disposal<\/strong>. Each stage is the subject of a later chapter.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The five-stage procurement cycle (1.13)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Circular five-stage procurement cycle\">\n<defs><marker id=\"arc\" markerUnits=\"userSpaceOnUse\" markerWidth=\"11\" markerHeight=\"11\" refX=\"9.5\" refY=\"5.5\" orient=\"auto\"><path d=\"M1 1.5 L9.5 5.5 L1 9.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<circle cx=\"300\" cy=\"205\" r=\"140\" fill=\"none\" stroke=\"#dde6ef\" stroke-width=\"2\" stroke-dasharray=\"3 7\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Procurement<\/text>\n<text x=\"300\" y=\"225\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Cycle<\/text>\n<path d=\"M347.9 73.4 A 140 140 0 0 1 410.3 118.8\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M439.9 209.9 A 140 140 0 0 1 416.1 283.3\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M338.6 339.6 A 140 140 0 0 1 261.4 339.6\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M183.9 283.3 A 140 140 0 0 1 160.1 209.9\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M189.7 118.8 A 140 140 0 0 1 252.1 73.4\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<circle cx=\"300.0\" cy=\"65.0\" r=\"40\" fill=\"#1c5da6\"\/>\n<text x=\"300.0\" y=\"56.5\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">1<\/text>\n<text x=\"300.0\" y=\"70.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Need<\/text>\n<circle cx=\"433.1\" cy=\"161.7\" r=\"40\" fill=\"#0e8f7a\"\/>\n<text x=\"433.1\" y=\"146.7\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">2<\/text>\n<text x=\"433.1\" y=\"160.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Bid<\/text>\n<text x=\"433.1\" y=\"173.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Invitation<\/text>\n<circle cx=\"382.3\" cy=\"318.3\" r=\"40\" fill=\"#c97c10\"\/>\n<text x=\"382.3\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">3<\/text>\n<text x=\"382.3\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Evaluate<\/text>\n<text x=\"382.3\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">& Award<\/text>\n<circle cx=\"217.7\" cy=\"318.3\" r=\"40\" fill=\"#7e3eb5\"\/>\n<text x=\"217.7\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">4<\/text>\n<text x=\"217.7\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Contract<\/text>\n<text x=\"217.7\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Mgmt<\/text>\n<circle cx=\"166.9\" cy=\"161.7\" r=\"40\" fill=\"#c0392b\"\/>\n<text x=\"166.9\" y=\"153.2\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">5<\/text>\n<text x=\"166.9\" y=\"167.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<\/svg>\n <div class=\"fig-cap\">Each stage is detailed in later chapters: Need (Ch 2), Bid Invitation (Ch 5), Evaluation & Award (Ch 7), Contract Management (Ch 9), Disposal (Ch 10).<\/div>\n <\/div>\n\n <div class=\"highlight-box\">\n <div class=\"hl-label\">Nomenclature (1.14)<\/div>\n <div class=\"hl-text\">Indian public procurement mixes American, European and British\/Indian terms. The Manual standardises <strong>\"Tender\"<\/strong> for the <em>tender document \/ process<\/em> published by the procuring entity, and <strong>\"Bid\"<\/strong> for what the <strong>bidder<\/strong> submits \u2014 so \"bidder\" replaces \"tenderer\", without disturbing terms already embedded in CPPP\/GeM (e.g. \"Pre-qualification Bidding\").<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz1\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 1 Quiz \u2014 principles, infrastructure & preferences<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 1. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage1\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c1-recap\">\n <div class=\"recap-title\">⚡ Chapter 1 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Apex statutory anchor<\/td><td><strong>Article 299<\/strong> \u2014 Government contracts in writing by authorised officers<\/td><\/tr>\n <tr><td>Core rules<\/td><td><strong>GFR 2017 (Ch 6\u20139)<\/strong>, DFPR; no exclusive procurement law<\/td><\/tr>\n <tr><td>GeM mandatory<\/td><td>Common-use goods\/services \u2014 <strong>Rule 149, GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Nodal authority<\/td><td><strong>PPD, Department of Expenditure<\/strong><\/td><\/tr>\n <tr><td>Five R's<\/td><td>Right Quality \u00b7 Quantity \u00b7 Price \u00b7 Time & Place \u00b7 Source<\/td><\/tr>\n <tr><td>Value for Money<\/td><td><strong>TCO \/ LCC \/ WOL<\/strong>; price alone is not VfM<\/td><\/tr>\n <tr><td>Five principles<\/td><td>Transparency \u00b7 Professionalism \u00b7 Broader Obligations \u00b7 Extended Legal \u00b7 Public Accountability (<strong>Rule 144<\/strong>)<\/td><\/tr>\n <tr><td>Financial propriety<\/td><td><strong>Rule 21, GFR<\/strong> \u2014 ordinary-prudence test<\/td><\/tr>\n <tr><td>CAG<\/td><td><strong>Articles 149\u2013151<\/strong>; SAII<\/td><\/tr>\n <tr><td>Khadi \/ MSE reservation<\/td><td><strong>20%<\/strong> handloom; <strong>358<\/strong> items exclusive to MSEs<\/td><\/tr>\n <tr><td>MSE purchase target<\/td><td><strong>25%<\/strong> (4% SC\/ST, 3% women); MSE band <strong>L1+15%<\/strong><\/td><\/tr>\n <tr><td>MII local content<\/td><td>Class-I <strong>50%<\/strong>, Class-II <strong>20%<\/strong>; preference margin <strong>20%<\/strong><\/td><\/tr>\n <tr><td>MII exemptions<\/td><td>Below <strong>\u20b95 lakh<\/strong>; CA certificate above <strong>\u20b910 crore<\/strong><\/td><\/tr>\n <tr><td>Procurement cycle<\/td><td>Need \u2192 Bid Invitation \u2192 Evaluation\/Award \u2192 Contract Mgmt \u2192 Disposal<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch2\" data-chapter=\"2\">\n\n <div class=\"chapter-heading-block\" id=\"c2-need\">\n <span class=\"chapter-badge\">CH 2 \u00b7 NEED & PLANNING<\/span>\n <h2>Need Assessment, Specifications & Procurement Planning<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Where procurement begins (2.1)<\/div>\n <div class=\"def-text\">\n Procurement should be initiated <strong>only on an indent<\/strong> from the user Department (Annexure 5). The indenting authority first determines the <strong>need and anticipated quantum<\/strong>. A clear description and specification of need is of fundamental importance to value for money, transparency, competition and a level playing field \u2014 and the user department must <strong>retain all documents<\/strong> on the determination and the technical\/financial\/budgetary approvals.\n <\/div>\n <\/div>\n\n <p>Six matters are settled during the need-assessment stage, each feeding into the indent:<\/p>\n\n <p>Need assessment settles six questions before a tender is floated:<\/p>\n <ol class=\"parts-list decimal teal\">\n <li><strong>Description<\/strong> \u2014 what is needed, by generic description and not by brand name.<\/li>\n <li><strong>Method<\/strong> \u2014 whether to own, lease, hire, or buy it as a service.<\/li>\n <li><strong>Quantity<\/strong> \u2014 how much, in the proper unit of measure.<\/li>\n <li><strong>Time & Place<\/strong> \u2014 when and where it is required, planned well in advance.<\/li>\n <li><strong>Specifications<\/strong> \u2014 the technical specification (covered in 2.2).<\/li>\n <li><strong>Cost Estimate<\/strong> \u2014 a realistic, objective estimate of value.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">What need assessment must decide (2.1)<\/div>\n <svg viewBox=\"0 0 600 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Hub and spoke of the six need-assessment decisions\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"56.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"123.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"324.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"123.0\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"190\" r=\"58\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"186\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">NEED<\/text>\n<text x=\"300\" y=\"205\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#cfe0f2\">assessment<\/text>\n<rect x=\"221.0\" y=\"33.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"61.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#1c5da6\">Description<\/text>\n<rect x=\"337.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#0e8f7a\">Method<\/text>\n<rect x=\"337.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c97c10\">Quantity<\/text>\n<rect x=\"221.0\" y=\"301.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"329.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#7e3eb5\">Time & Place<\/text>\n<rect x=\"105.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c0392b\">Specifications<\/text>\n<rect x=\"105.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#41617f\">Cost Estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Except for proprietary single-source purchase, avoid brand \/ trade names; where unavoidable, add the words <strong>\"or substantially equivalent\"<\/strong>. Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight, not length).<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-cost\">\n <span class=\"section-badge slate\">\u00a7 2.1(f)<\/span>\n <h3>Estimation of cost<\/h3>\n <\/div>\n\n <p>The estimated cost is vital for approvals and for judging the reasonableness of bid prices, so it must be worked out <strong>realistically and objectively<\/strong>. The methods are neither mandatory nor ranked \u2014 <strong>triangulating<\/strong> several gives a more accurate estimate. Which one fits depends on what data exists:<\/p>\n\n <p>A realistic estimate is built, in order of preference, from: <strong>market price discovery<\/strong>; the <strong>Last Purchase Price<\/strong> updated for quantity, time and terms; <strong>budgetary or catalogue rates<\/strong>; and, failing these, indices and a professional estimate.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Choosing a cost-estimation method (2.1(f))<\/div>\n <svg viewBox=\"0 0 660 270\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision ladder for cost estimation methods\">\n<rect x=\"60\" y=\"30\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"30\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#1c5da6\"\/>\n<circle cx=\"92\" cy=\"53.0\" r=\"14\" fill=\"#1c5da6\"\/>\n<text x=\"92\" y=\"58.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"120\" y=\"58.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Market price discovery<\/text>\n<rect x=\"60\" y=\"88\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"88\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<circle cx=\"92\" cy=\"111.0\" r=\"14\" fill=\"#0e8f7a\"\/>\n<text x=\"92\" y=\"116.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"120\" y=\"116.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Last Purchase Price + update<\/text>\n<rect x=\"60\" y=\"146\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"146\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#c97c10\"\/>\n<circle cx=\"92\" cy=\"169.0\" r=\"14\" fill=\"#c97c10\"\/>\n<text x=\"92\" y=\"174.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"120\" y=\"174.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Budgetary \/ catalogue rates<\/text>\n<rect x=\"60\" y=\"204\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"204\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#41617f\"\/>\n<circle cx=\"92\" cy=\"227.0\" r=\"14\" fill=\"#41617f\"\/>\n<text x=\"92\" y=\"232.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"120\" y=\"232.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Indices & professional estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Budgetary quotes are <strong>not<\/strong> exact estimates: a bidder expecting shortlisting may quote high, one not expecting it may quote abnormally low. Where fewer than three arrive, average those received.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-spec\">\n <span class=\"section-badge amber\">\u00a7 2.2<\/span>\n <h3>Formulation of Technical Specifications (TS)<\/h3>\n <\/div>\n\n <p>Specifications are the <strong>benchmarks<\/strong> against which technical responsiveness is verified and bids evaluated (<strong>Rule 173(ix), GFR 2017<\/strong>). Well-defined TS help bidders prepare responsive bids and the entity compare them, and they safeguard quality. A good specification must:<\/p>\n\n <ol class=\"parts-list decimal amber\">\n <li><strong>Ensure a level playing field<\/strong> and the widest competition; be unambiguous, precise, objective, functional, broad-based\/generic, standardised and measurable.<\/li>\n <li><strong>Cover only the bare essential<\/strong> technical, qualitative and performance characteristics \u2014 no superfluous features causing unwarranted expenditure.<\/li>\n <li><strong>Rest on BIS standards<\/strong> where they exist (preference to BIS-marked goods); international standards only in their absence, with deviations recorded in writing.<\/li>\n <li><strong>Use metric units<\/strong> for all dimensions (FPS equivalents shown only if unavoidable).<\/li>\n <li><strong>Require new, unused, current models<\/strong> incorporating recent design and material improvements \u2014 avoiding obsolete goods, unless otherwise provided.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-green\">\n <span class=\"section-badge teal\">\u00a7 2.2.8<\/span>\n <h3>Green procurement, Ecomark & energy-efficiency labels<\/h3>\n <\/div>\n\n <p>Specifications should comply with <strong>sustainability criteria<\/strong> and pollution-control rules, prefer low-impact packaging, and may require the <strong>Ecomark Label<\/strong> under the <strong>Ecomark Certification Rules, 2023<\/strong> \u2014 supporting the principle of <strong>LiFE (Lifestyle for Environment)<\/strong>. Energy efficiency is signalled by the BEE star system:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">1 Mar 2002<\/div><div class=\"st-cap\"><strong>BEE<\/strong> set up under the Energy Conservation Act, 2001<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">34 \/ 11<\/div><div class=\"st-cap\">Appliances covered \/ for which <strong>labelling is mandatory<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">5\u2605 AC<\/div><div class=\"st-cap\">Split AC threshold (usage >1000 hrs\/yr; <strong>3\u2605<\/strong> if limited)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4\u2605 fridge<\/div><div class=\"st-cap\">Frost-free refrigerator threshold rating<\/div><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">BEE star rating \u2014 the higher the stars, the more efficient<\/div>\n <svg viewBox=\"0 0 660 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Five star energy efficiency meter\">\n<rect x=\"80\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#cfe8d8\"\/>\n<text x=\"124.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★<\/text>\n<rect x=\"176\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#9ed4b3\"\/>\n<text x=\"220.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★★<\/text>\n<rect x=\"272\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#5cb98a\"\/>\n<text x=\"316.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">3★<\/text>\n<rect x=\"368\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#2a9d6a\"\/>\n<text x=\"412.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">4★<\/text>\n<rect x=\"464\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<text x=\"508.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">5★<\/text>\n<text x=\"80\" y=\"52\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">BEE star rating \u2014 more stars = more energy-efficient<\/text>\n<text x=\"80\" y=\"158\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"700\" fill=\"#0e8f7a\">Higher rating, lower running cost →<\/text>\n<\/svg>\n <div class=\"fig-cap\">Specifications should emphasise efficiency, optimum fuel\/power use, environmentally friendly materials, reduced noise\/emissions and low maintenance cost.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-sanction\">\n <span class=\"section-badge purple\">\u00a7 2.3<\/span>\n <h3>Technical, administrative & budgetary sanctions and indents<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Raise the indent<\/div><div class=\"fs-text\">User department submits a <strong>Purchase Requisition<\/strong> (Annexure 5), allowing adequate procurement time.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Certify funds<\/div><div class=\"fs-text\">Certify <strong>budget availability<\/strong> and note the liability against the available budget before approval.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Approve \/ urgency<\/div><div class=\"fs-text\">Approve per the Schedule of Powers (Annexure 4); a short lead time needs an <strong>urgency certificate<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Monitor<\/div><div class=\"fs-text\">Indentor and procuring authority track progress through registers (Annexures 6 & 7).<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-risk1\">\n <span class=\"section-badge red\">\u00a7 2.4<\/span>\n <h3>Need assessment & specification \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Need <strong>artificially created or exaggerated<\/strong> to channel benefit to a person\/organisation.<\/td><td>Keep records of decisions and data; involve <strong>procurement and finance functions<\/strong>; consult end-users and stakeholders.<\/td><\/tr>\n <tr><td><strong>Delays<\/strong> in need assessment \/ indent generation force shortcut procedures that dilute transparency and VfM.<\/td><td>Assess need <strong>well in advance<\/strong>; for urgent cases record justification and obtain an urgency certificate from the competent authority.<\/td><\/tr>\n <tr><td><strong>Inadequate cost estimate<\/strong> causes poor bidder response, delays or quality loss.<\/td><td>Prepare estimates with <strong>due diligence<\/strong>, factoring inflation, technology change and profit margins.<\/td><\/tr>\n <tr><td><strong>Subjective specifications<\/strong> (e.g. sample-based evaluation) invite allegations of corruption.<\/td><td>Display a <strong>stock sample<\/strong> for indeterminable parameters (shade, finish, workmanship); require a <strong>pre-production sample<\/strong> before bulk clearance.<\/td><\/tr>\n <tr><td>Specifications <strong>tilted to favour<\/strong> a vendor; or <strong>asymmetric<\/strong> sharing of need information.<\/td><td>Use a formal market-discovery tool \u2014 a <strong>pre-bid conference and\/or well-publicised EoI<\/strong>; invite comments on the conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c2-plan\">\n <span class=\"section-badge blue\">\u00a7 2.5<\/span>\n <h3>Procurement planning<\/h3>\n <\/div>\n\n <p>After the indent, the procuring entity makes the decisions that turn a need into a tender. Three numbers anchor the discipline:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 144(x)<\/div><div class=\"st-cap\">Publish the <strong>Annual Procurement Plan<\/strong> on GeM\/CPPP \u2014 not an initiation of procurement<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">10 days<\/div><div class=\"st-cap\">Working days to <strong>review the indent<\/strong> for completeness, funding & VfM<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 157<\/div><div class=\"st-cap\">Normally <strong>do not split\/package<\/strong> to limit competition or avoid sanction<\/div><\/div>\n <\/div>\n\n <ol class=\"parts-list decimal\">\n <li><strong>Reassess quantity & packaging\/slicing.<\/strong> Division is allowed only for reasons recorded in writing \u2014 efficiency, economy, timely supply, wider competition or <strong>MSE access<\/strong>.<\/li>\n <li><strong>Declare any participation limits<\/strong> as per the Government's preference policy; lay down only reasonable, justifiable eligibility\/pre-qualification criteria.<\/li>\n <li><strong>Select the tendering system<\/strong> (single\/two stage, single\/two bid) and the <strong>mode of procurement<\/strong> (open \/ limited \/ single tender, reverse auction).<\/li>\n <li><strong>Declare timeframes<\/strong> for each stage from tender to contract (Rule 144(ix)), and prepare an <strong>integrated annual procurement plan<\/strong> staggering loads across the year.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-cartel\">\n <span class=\"section-badge slate\">\u00a7 2.5.1<\/span>\n <h3>Mitigating cartels & strategising large procurement<\/h3>\n <\/div>\n\n <p>Need assessment and procurement planning is the main stage at which <strong>cartel formation<\/strong> can be addressed \u2014 by widening the field and varying the pattern bidders rely on:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Widen the field<\/div><div class=\"cat-title\">More suppliers<\/div><p>Encourage new firms to register; review tailor-made specifications so commercially available alternatives qualify; consider substitutes.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Watch the venue<\/div><div class=\"cat-title\">Pre-bid caution<\/div><p>Pre-bid conferences can <strong>facilitate collusion<\/strong> \u2014 hold them virtually where feasible, though they remain useful for turnkey or costly equipment.<\/p><\/div>\n <div class=\"cat-card e\"><div class=\"cat-label\">Break the pattern<\/div><div class=\"cat-title\">Vary year-on-year<\/div><p>Change the <strong>mode<\/strong> (OTE\u2194LTE, GTE\u2194OTE), the <strong>quantity<\/strong> (package\/slice\/club items) and the <strong>pre-qualification criteria<\/strong>.<\/p><\/div>\n <\/div>\n\n <p>Large procurements need market research before rules are applied \u2014 the parameters worth studying are production capacity vs demand, the <strong>volume<\/strong> of the requirement relative to the market (would clubbing raise bargaining power?), the level of <strong>competition<\/strong> and cartelisation, <strong>supply-chain<\/strong> constraints (raw materials, logistics, geopolitics), specification variations, and <strong>pricing trends\/seasonality<\/strong>.<\/p>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Procurement planning \u2014 the headline risk (2.5.2)<\/div>\n <p><strong>Packaging, bundling or slicing<\/strong> done to avoid or reduce open competition \u2014 or a package so large that MSEs cannot participate \u2014 is the chief planning risk. The mitigation is a <strong>clear written policy<\/strong> for packaging\/bundling, with EMD affordability kept in view and bidders allowed to <strong>bid for slices<\/strong> against proportional EMD.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz2\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 2 Quiz \u2014 need, specifications & planning<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 2. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage2\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c2-recap\">\n <div class=\"recap-title\">⚡ Chapter 2 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Trigger for procurement<\/td><td>An <strong>indent<\/strong> from the user Department (Annexure 5)<\/td><\/tr>\n <tr><td>Brand names<\/td><td>Avoid; if unavoidable add <strong>\"or substantially equivalent\"<\/strong><\/td><\/tr>\n <tr><td>Units of purchase<\/td><td>Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight)<\/td><\/tr>\n <tr><td>Cost estimation<\/td><td><strong>Triangulate<\/strong>; budgetary quotes ideally <strong>three<\/strong> (10\u201321 days)<\/td><\/tr>\n <tr><td>Specifications standard<\/td><td>Based on <strong>BIS<\/strong>; prefer BIS-marked goods; metric units<\/td><\/tr>\n <tr><td>Specs rule reference<\/td><td><strong>Rule 173(ix), GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Energy labels (BEE)<\/td><td>BEE since <strong>1 Mar 2002<\/strong>; Split AC <strong>5\u2605<\/strong>, fridge <strong>4\u2605<\/strong><\/td><\/tr>\n <tr><td>Green label<\/td><td><strong>Ecomark Rules 2023<\/strong>; principle of LiFE<\/td><\/tr>\n <tr><td>Sanction prerequisite<\/td><td>Certify <strong>budget availability<\/strong>; urgency certificate if short lead<\/td><\/tr>\n <tr><td>Annual Procurement Plan<\/td><td><strong>Rule 144(x)<\/strong>; not a procurement initiation<\/td><\/tr>\n <tr><td>Review window<\/td><td><strong>10 working days<\/strong> to review the indent<\/td><\/tr>\n <tr><td>No splitting<\/td><td><strong>Rule 157, GFR 2017<\/strong> \u2014 except for recorded reasons (incl. MSE access)<\/td><\/tr>\n <tr><td>Cartel mitigation<\/td><td>Best at planning \u2014 vary mode, quantity & criteria<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch3\" data-chapter=\"3\">\n\n <div class=\"chapter-heading-block\" id=\"c3-srm\">\n <span class=\"chapter-badge\">CH 3 \u00b7 SUPPLIER RELATIONS<\/span>\n <h2>Supplier Relationship Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What SRM covers (3.1)<\/div>\n <div class=\"def-text\">\n Supplier Relationship Management binds the supply side to ethical conduct and keeps the supplier base healthy. It has three functions: ensuring suppliers <strong>comply with the Code of Integrity and Integrity Pact (CIPP)<\/strong> where stipulated; <strong>removing<\/strong> firms from the registered list and <strong>debarring<\/strong> them where warranted; and <strong>developing new sources<\/strong> and registering suppliers.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-cipp\">\n <span class=\"section-badge red\">\u00a7 3.2<\/span>\n <h3>Code of Integrity for Public Procurement (CIPP)<\/h3>\n <\/div>\n\n <p>Public procurement is prone to corruption and ethical risk, so both procuring officials and bidders\/suppliers must observe the highest standard of ethics (<strong>Rule 175, GFR 2017<\/strong>). Officials sign periodic declarations; bidders declare adherence in registration and tender documents, with a warning of punitive action. The code forbids seven prohibited practices:<\/p>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The seven prohibited practices under the Code of Integrity (3.2)<\/div>\n <svg viewBox=\"0 0 640 470\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Seven prohibited practices under the Code of Integrity\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"320\" y1=\"225\" x2=\"320.0\" y2=\"67.0\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"443.5\" y2=\"126.5\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"474.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"388.6\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"251.4\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"166.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"196.5\" y2=\"126.5\"\/>\n<\/g>\n<circle cx=\"320\" cy=\"225\" r=\"60\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"219\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">CODE OF<\/text>\n<text x=\"320\" y=\"235\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">INTEGRITY<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#ffd95a\">Rule 175<\/text>\n<circle cx=\"320.0\" cy=\"67.0\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"320.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Corrupt<\/text>\n<circle cx=\"443.5\" cy=\"126.5\" r=\"48\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"443.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c97c10\">Fraudulent<\/text>\n<circle cx=\"474.0\" cy=\"260.2\" r=\"48\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"474.0\" y=\"265.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">Anti-competitive<\/text>\n<circle cx=\"388.6\" cy=\"367.4\" r=\"48\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"388.6\" y=\"372.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">Coercive<\/text>\n<circle cx=\"251.4\" cy=\"367.4\" r=\"48\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"251.4\" y=\"363.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Conflict of<\/text>\n<text x=\"251.4\" y=\"379.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Interest<\/text>\n<circle cx=\"166.0\" cy=\"260.2\" r=\"48\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2.5\"\/>\n<text x=\"166.0\" y=\"256.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Undue<\/text>\n<text x=\"166.0\" y=\"272.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Advantage<\/text>\n<circle cx=\"196.5\" cy=\"126.5\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"196.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Obstructive<\/text>\n<\/svg>\n <div class=\"fig-cap\">Voluntary disclosure of a <strong>conflict of interest<\/strong> or a past transgression does not mean automatic disqualification \u2014 the procuring entity may evaluate it and take mitigation steps.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal red\">\n <li><strong>Corrupt practice<\/strong> \u2014 offering, giving or accepting any gratification, gift or reward to influence an official act.<\/li>\n <li><strong>Fraudulent practice<\/strong> \u2014 any misrepresentation or omission of facts to influence a process or contract.<\/li>\n <li><strong>Anti-competitive practice<\/strong> \u2014 collusion, bid-rigging or any arrangement among bidders under the Competition Act, 2002.<\/li>\n <li><strong>Coercive practice<\/strong> \u2014 harming or threatening persons or property to influence participation or conduct.<\/li>\n <li><strong>Conflict of interest<\/strong> \u2014 a bidder's interest that conflicts with fair performance of the contract.<\/li>\n <li><strong>Undue advantage<\/strong> \u2014 taking improper benefit of leaked or privileged information.<\/li>\n <li><strong>Obstructive practice<\/strong> \u2014 concealing or destroying evidence, or impeding an inquiry, inspection or audit.<\/li>\n <\/ol>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Proactive disclosures a bidder must make<\/div>\n <ul class=\"note-list slate\">\n <li><span class=\"nl-tag\">COI<\/span><span class=\"nl-text\">Suo-moto declare any <strong>conflict of interest<\/strong>, pre-existing or arising at any stage of the process or contract execution.<\/span><\/li>\n <li><span class=\"nl-tag\">3 YRS<\/span><span class=\"nl-text\">Declare any <strong>previous transgressions<\/strong> of the code with any entity in any country in the last <strong>three years<\/strong>, or any debarment by another procuring entity.<\/span><\/li>\n <li><span class=\"nl-tag\">AGENTS<\/span><span class=\"nl-text\">Disclose any <strong>commissions or fees<\/strong> paid (or to be paid) to agents\/representatives \u2014 name, address, amount, currency and purpose.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"compare-intro\"><strong>Punitive provisions<\/strong> escalate with how far the contract has progressed:<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:34%\"><col style=\"width:66%\"><\/colgroup>\n <thead><tr><th>Stage<\/th><th>Measures the procuring entity may take<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Bid under consideration<\/td><td>Forfeiture\/encashment of <strong>bid security<\/strong>; calling off pre-contract negotiations; <strong>rejection and exclusion<\/strong> from the process.<\/td><\/tr>\n <tr><td class=\"label-cell\">Contract already awarded<\/td><td><strong>Cancellation<\/strong> and recovery of loss; forfeiture of other security\/bond; recovery of payments (incl. advances) with interest.<\/td><\/tr>\n <tr><td class=\"label-cell\">In addition<\/td><td>Removal from the registered list \/ <strong>debarment for not less than six months<\/strong>; anti-competitive practice reported to the <strong>Competition Commission of India<\/strong> (by a Joint-Secretary-level officer); disciplinary or criminal proceedings.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-pact\">\n <span class=\"section-badge teal\">\u00a7 3.3<\/span>\n <h3>Integrity Pact<\/h3>\n <\/div>\n\n <p>The <strong>Pre-bid Integrity Pact<\/strong> binds both buyer and sellers to ethical conduct and transparency across the whole contract \u2014 removing a bidder's fear that, while it abjures bribery, a competitor may bribe and win. Ministries incorporate it (with the Minister-in-charge's approval) for procurements above a chosen threshold.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">80\u201390%<\/div><div class=\"st-cap\">By value, the Integrity Pact threshold should cover the <strong>bulk of annual procurement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">PSBs \u00b7 PSICs \u00b7 FIs<\/div><div class=\"st-cap\">Per CVC's revised SOP, these must also adopt the Integrity Pact<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">IEM<\/div><div class=\"st-cap\">Independent External Monitors appointed by CVC oversee the Pact<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-grievance\">\n <span class=\"section-badge purple\">\u00a7 3.4<\/span>\n <h3>Grievances and their redressal<\/h3>\n <\/div>\n\n <p>Tender documents must carry a grievance-redressal clause. Only a <strong>directly affected bidder<\/strong> who participated in the relevant stage can represent \u2014 and only on the stage they qualified in.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Grievance-redressal timeline (3.4)<\/div>\n <svg viewBox=\"0 0 660 150\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Grievance redressal timeline\">\n<defs><marker id=\"tl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<line x1=\"110\" y1=\"80\" x2=\"598\" y2=\"80\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#tl)\"\/>\n<circle cx=\"130\" cy=\"80\" r=\"15\" fill=\"#10243f\"\/>\n<text x=\"130\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#10243f\">Day 0<\/text>\n<text x=\"130\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">decision<\/text>\n<circle cx=\"330\" cy=\"80\" r=\"15\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">5 days<\/text>\n<text x=\"330\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">seek review<\/text>\n<circle cx=\"520\" cy=\"80\" r=\"15\" fill=\"#0e8f7a\"\/>\n<text x=\"520\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">30 days<\/text>\n<text x=\"520\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">redress & close<\/text>\n<\/svg>\n <div class=\"fig-cap\">This route is <strong>in addition to<\/strong> complaints to the organisation's vigilance department.<\/div>\n <\/div>\n\n <p>Several decisions are taken in good faith under internal guidelines and are <strong>not open to review<\/strong>: the determination of need; the choice of mode of procurement or tendering system; the choice of selection procedure; specifications (except where vague or too restrictive); participation limits and purchase-preference under Government policy; the decision to negotiate with L1; and cancellation of the process (unless it will be re-tendered). Contract-ambiguity issues must be raised <strong>before<\/strong> the contract is signed.<\/p>\n\n <div class=\"section-heading-block\" id=\"c3-conduct\">\n <span class=\"section-badge amber\">\u00a7 3.5<\/span>\n <h3>Conduct of public servants \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>Hospitality<\/strong> from suppliers beyond laid-down limits.<\/td><td>Decline; record and report hospitality; follow conduct-rule limits.<\/td><\/tr>\n <tr><td><strong>Gifts<\/strong> from suppliers tending to influence decisions.<\/td><td>Refuse gifts beyond permissible value; disclose under conduct rules.<\/td><\/tr>\n <tr><td><strong>Private purchases<\/strong> from official suppliers at concessional terms.<\/td><td>Avoid private dealings with firms one deals with officially.<\/td><\/tr>\n <tr><td><strong>Sponsorship<\/strong> of events by prospective suppliers.<\/td><td>Avoid accepting sponsorship that could compromise impartiality.<\/td><\/tr>\n <tr><td><strong>Conflict of interest<\/strong> \u2014 officers related to or financially linked with a bidder.<\/td><td>Declare relationships; exclude conflicted officers from need-determination, tender-document and evaluation roles.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-register\">\n <span class=\"section-badge blue\">\u00a7 3.6<\/span>\n <h3>Registration, empanelment & pre-qualification<\/h3>\n <\/div>\n\n <p>These three shortlisting devices differ in rigour and purpose (<strong>Rule 150, GFR 2017<\/strong>):<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Identity<\/div><div class=\"cat-title\">Registration<\/div><p>Establishes <strong>genuine identification<\/strong> of a firm (e.g. for e-procurement); based on less-rigorous checks of capability and past experience.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Capability<\/div><div class=\"cat-title\">Empanelment<\/div><p>Establishes <strong>prima-facie capability<\/strong> for restricted tendering \u2014 not open tendering.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Per tender<\/div><div class=\"cat-title\">Pre-qualification<\/div><p>Rigorous, tender-specific shortlisting through <strong>wide publicity<\/strong> where the requirement dictates strong qualification criteria.<\/p><\/div>\n <\/div>\n\n <p>Registration is granted for specific trade groups, valid <strong>one to three years<\/strong> (provisional until the firm satisfactorily executes one order), with a unique registration number and EMD exemption within prescribed monetary limits. Registration grades by order value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\" style=\"--x:1\"><div class=\"st-num\">Grade A<\/div><div class=\"st-cap\">Orders <strong>Rs 25 lakh and above<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Grade B<\/div><div class=\"st-cap\"><strong>Rs 5 lakh \u2013 Rs 25 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Grade C<\/div><div class=\"st-cap\"><strong>Rs 1 lakh \u2013 Rs 5 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">3 \/ 6<\/div><div class=\"st-cap\">Removed if no response to <strong>3 tenders\/yr<\/strong> despite <strong>6 invitations<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-debar\">\n <span class=\"section-badge red\">\u00a7 3.7<\/span>\n <h3>Debarment of suppliers<\/h3>\n <\/div>\n\n <p>Eligibility to bid depends on integrity and performance. Debarment (\"banning\", \"suspension\", \"black-listing\" all mean the same) follows two tracks under the GFR and the PPD guidelines \u2014 always after a <strong>reasonable opportunity to represent<\/strong>:<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:40%\"><col style=\"width:36%\"><\/colgroup>\n <thead><tr><th>Trigger<\/th><th>Ground<\/th><th>Period<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Conviction (Rule 151)<\/td><td>Convicted under the <strong>Prevention of Corruption Act, 1988<\/strong> or IPC for loss of life\/property in a procurement contract.<\/td><td>Debarred up to <strong>3 years<\/strong> from the date of debarment.<\/td><\/tr>\n <tr><td class=\"label-cell\">Single Ministry\/Dept<\/td><td>Transgression warranting debarment within one Ministry's jurisdiction.<\/td><td>Up to <strong>2 years<\/strong>; effective from upload to the website.<\/td><\/tr>\n <tr><td class=\"label-cell\">Across all Ministries<\/td><td>Serious cases referred to \/ acted on by DoE.<\/td><td>Up to <strong>3 years<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile red\"><div class=\"st-num\">12 weeks<\/div><div class=\"st-cap\">Target time from zero-day to start of the <strong>debarment period<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Executive<\/div><div class=\"st-cap\">Debarment is an executive function \u2014 <strong>not<\/strong> allocated to Vigilance<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">GeM \u00b7 2 yrs<\/div><div class=\"st-cap\">GeM may debar bidders for up to <strong>2 years<\/strong> on its portal<\/div><\/div>\n <\/div>\n\n <p>Indian agents who wish to quote directly on behalf of foreign principals may be <strong>enlisted<\/strong> by Ministries\/Departments where required (<strong>Rule 152, GFR 2017<\/strong>) \u2014 section 3.8.<\/p>\n\n \n <div class=\"ix\" id=\"quiz3\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 3 Quiz \u2014 integrity, grievances & debarment<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 3. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage3\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c3-recap\">\n <div class=\"recap-title\">⚡ Chapter 3 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>SRM functions<\/td><td>CIPP compliance \u00b7 removal\/debarment \u00b7 new-source development<\/td><\/tr>\n <tr><td>Code of Integrity<\/td><td><strong>Rule 175, GFR 2017<\/strong>; seven prohibited practices<\/td><\/tr>\n <tr><td>Prohibited practices<\/td><td>Corrupt \u00b7 Fraudulent \u00b7 Anti-competitive \u00b7 Coercive \u00b7 COI \u00b7 Undue Advantage \u00b7 Obstructive<\/td><\/tr>\n <tr><td>Transgression disclosure<\/td><td>Last <strong>3 years<\/strong>, any entity\/country<\/td><\/tr>\n <tr><td>CIPP min. debarment<\/td><td><strong>Not less than 6 months<\/strong><\/td><\/tr>\n <tr><td>Integrity Pact coverage<\/td><td><strong>80\u201390%<\/strong> of annual procurement by value<\/td><\/tr>\n <tr><td>Grievance \u2014 review<\/td><td>Within <strong>5 days<\/strong>; post-award close within <strong>30 days<\/strong><\/td><\/tr>\n <tr><td>Registration rule<\/td><td><strong>Rule 150<\/strong>; valid <strong>1\u20133 years<\/strong>; Grades A\/B\/C<\/td><\/tr>\n <tr><td>Debarment \u2014 conviction<\/td><td><strong>Rule 151<\/strong>; up to <strong>3 years<\/strong><\/td><\/tr>\n <tr><td>Debarment \u2014 Ministry \/ DoE<\/td><td><strong>2 years<\/strong> (single) \/ <strong>3 years<\/strong> (across all)<\/td><\/tr>\n <tr><td>Indian agents<\/td><td>Enlisted under <strong>Rule 152<\/strong><\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch4\" data-chapter=\"4\">\n\n <div class=\"chapter-heading-block\" id=\"c4-modes\">\n <span class=\"chapter-badge\">CH 4 \u00b7 MODES & TENDERING<\/span>\n <h2>Modes of Procurement & Tendering Systems<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Choosing how to buy (4.1)<\/div>\n <div class=\"def-text\">\n Offers must be invited by a procedure that balances the <strong>widest competition<\/strong> against the complexity, time, effort and cost of the procedure. Different modes vary the width and specificity of the bidder catchment to suit the situation \u2014 the mode of procurement is the <strong>\"Right Source\"<\/strong> of the Five R's. Powers to approve each mode are delegated through the DFPR and each entity's Schedule of Procurement Powers (SoPP).\n <\/div>\n <\/div>\n\n <p>All modes fall into five families, arranged from the widest competition to single source:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Advertised<\/strong> (Rule 161) \u2014 OTE, GTE, Rate Contract and electronic Reverse Auction.<\/li>\n <li><strong>Pre-Qualification<\/strong> \u2014 Pre-Qualification Bidding and the Approved Vendor List.<\/li>\n <li><strong>Restricted<\/strong> (Rule 162) \u2014 Limited Tender (LTE) and Special LTE.<\/li>\n <li><strong>Nomination<\/strong> (Rule 166) \u2014 Proprietary Article Certificate (PAC) and Single Tender Enquiry \u2014 single source.<\/li>\n <li><strong>Shopping<\/strong> (Rules 154\u2013155) \u2014 direct purchase and the Purchase Committee.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The five families of procurement mode (4.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Spectrum of procurement modes from widest competition to single source\">\n<defs><marker id=\"sp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#sp)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">WIDEST COMPETITION<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">SINGLE SOURCE<\/text>\n<rect x=\"26.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#1c5da6\"\/>\n<text x=\"86.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">ADVERTISED<\/text>\n<text x=\"86.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 161<\/text>\n<rect x=\"158.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#0e8f7a\"\/>\n<text x=\"218.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">PRE-QUAL<\/text>\n<text x=\"218.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">shortlist<\/text>\n<rect x=\"290.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c97c10\"\/>\n<text x=\"350.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">RESTRICTED<\/text>\n<text x=\"350.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 162<\/text>\n<rect x=\"422.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#7e3eb5\"\/>\n<text x=\"482.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">NOMINATION<\/text>\n<text x=\"482.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 166<\/text>\n<rect x=\"554.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c0392b\"\/>\n<text x=\"614.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">SHOPPING<\/text>\n<text x=\"614.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 154\/155<\/text>\n<\/svg>\n <div class=\"fig-cap\">Advertised modes seek the widest competition through wide publicity; nomination and shopping modes sit at the single-source end for special or small-value needs.<\/div>\n <\/div>\n\n <p>For routine goods, the mode is driven largely by <strong>value<\/strong>. The thresholds form a ladder from petty purchase to open tender:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Value thresholds \u2192 mode of procurement<\/div>\n <svg viewBox=\"0 0 660 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Value threshold ladder mapping procurement value to mode\">\n<defs><marker id=\"up\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"300\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up)\"\/>\n<text x=\"24\" y=\"165\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 165)\">higher value<\/text>\n<rect x=\"62\" y=\"30\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#1c5da6\"\/>\n<text x=\"84\" y=\"57\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Above Rs 50 lakh<\/text>\n<text x=\"84\" y=\"78\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Open Tender (OTE) \u2014 default<\/text>\n<text x=\"624\" y=\"57\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#1c5da6\">Rule 161<\/text>\n<rect x=\"62\" y=\"102\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"102\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"129\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Up to Rs 50 lakh<\/text>\n<text x=\"84\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender (LTE)<\/text>\n<text x=\"624\" y=\"129\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">Rule 162<\/text>\n<rect x=\"62\" y=\"174\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"174\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"201\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Rs 50k \u2013 Rs 5 lakh<\/text>\n<text x=\"84\" y=\"222\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Purchase Committee<\/text>\n<text x=\"624\" y=\"201\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">Rule 155<\/text>\n<rect x=\"62\" y=\"246\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"246\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#41617f\"\/>\n<text x=\"84\" y=\"273\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#41617f\">Up to Rs 50,000<\/text>\n<text x=\"84\" y=\"294\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Direct (petty) purchase<\/text>\n<text x=\"624\" y=\"273\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#41617f\">Rule 154<\/text>\n<\/svg>\n <div class=\"fig-cap\">Scientific Ministries\/Departments enjoy enhanced limits \u2014 petty purchase up to <strong>Rs 1 lakh<\/strong> and Purchase Committee up to <strong>Rs 10 lakh<\/strong>. A requirement must never be split to dodge a threshold.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-advertised\">\n <span class=\"section-badge blue\">\u00a7 4.2–4.5<\/span>\n <h3>Advertised modes \u2014 OTE, GTE, Rate Contract & eRA<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:20%\"><col style=\"width:30%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>When used<\/th><th>Key features<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Open Tender Enquiry (OTE)<\/td><td>Procurements <strong>above Rs 50 lakh<\/strong>; the <strong>default mode<\/strong> (Rule 161).<\/td><td>Widest competition; NIT on <strong>GeM & CPPP<\/strong>; no prior registration insisted; tender documents <strong>free to download<\/strong>; best VfM but relatively complex.<\/td><\/tr>\n <tr><td class=\"label-cell\">Global Tender Enquiry (GTE)<\/td><td>When foreign sourcing is needed.<\/td><td><strong>No GTE up to Rs 200 crore<\/strong> without approval of the DoE-designated competent authority; foreign bidders may quote in foreign currency; e-procurement not mandatorily insisted.<\/td><\/tr>\n <tr><td class=\"label-cell\">Rate Contract \/ Framework Agreement<\/td><td>Common, repetitively-used items of standard specification.<\/td><td>Agreement on <strong>rate<\/strong>; <strong>no quantity<\/strong> mentioned or guaranteed; either party may withdraw on notice; supply orders placed during validity.<\/td><\/tr>\n <tr><td class=\"label-cell\">Electronic Reverse Auction (eRA)<\/td><td>Dynamic price discovery where specifications are firm.<\/td><td>Bidders compete by <strong>lowering prices<\/strong> in real time; available on GeM.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c4-restricted\">\n <span class=\"section-badge amber\">\u00a7 4.6–4.9<\/span>\n <h3>Pre-qualification & restricted modes<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">4.6 \/ 4.7<\/div><div class=\"cat-title\">PQB & Approved Vendor List<\/div><p><strong>Pre-Qualification Bidding<\/strong> shortlists capable bidders through wide publicity; an <strong>Approved Vendor List (AVL)<\/strong> holds vendors qualified for repeated draw-down. Both restrict bidding to qualified bidders.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">4.8 \/ 4.9<\/div><div class=\"cat-title\">LTE & SLTE<\/div><p><strong>Limited Tender Enquiry (LTE)<\/strong> \u2014 up to <strong>Rs 50 lakh<\/strong> (Rule 162), sent to <strong>more than three<\/strong> registered vendors and also published. <strong>Special LTE (SLTE)<\/strong> \u2014 above Rs 50 lakh in <strong>exceptional<\/strong> circumstances.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-nomination\">\n <span class=\"section-badge purple\">\u00a7 4.10–4.13<\/span>\n <h3>Nomination & shopping modes<\/h3>\n <\/div>\n\n <p>Where competition is impossible or uneconomic, procurement is from a single source or by simple shopping (Rules 154, 155, 166):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:26%\"><col style=\"width:36%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>Basis<\/th><th>Limit \/ note<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">PAC procurement<\/td><td>Proprietary Article Certificate \u2014 item available only from a named OEM\/proprietor or its authorised dealer.<\/td><td>Single source; the shortest route but needs a signed PAC (Rule 166).<\/td><\/tr>\n <tr><td class=\"label-cell\">STE without PAC<\/td><td>Single Tender Enquiry \u2014 one firm only, where a PAC cannot be certified.<\/td><td>More restricted powers than PAC.<\/td><\/tr>\n <tr><td class=\"label-cell\">Direct without quotation<\/td><td>Petty purchase of off-the-shelf, standard goods.<\/td><td>Up to <strong>Rs 50,000<\/strong> per case (Rule 154); <strong>Rs 1 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <tr><td class=\"label-cell\">Purchase Committee<\/td><td>Local committee of <strong>three members<\/strong> records a certificate.<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong> (Rule 155); <strong>Rs 10 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For any procurement outside GeM under the shopping modes, the buyer must first generate a <strong>\"GeM Availability Report & Past Transaction Summary\" (GeMAR&PTS)<\/strong> with a unique ID on the GeM portal.<\/p>\n\n <div class=\"section-heading-block\" id=\"c4-tendering\">\n <span class=\"section-badge teal\">\u00a7 4.14–4.16<\/span>\n <h3>Tendering systems \u2014 single-stage vs two-stage<\/h3>\n <\/div>\n\n <div class=\"flow teal\">\n <div class=\"flow-step\"><div class=\"fs-num\">SINGLE STAGE<\/div><div class=\"fs-title\">One call<\/div><div class=\"fs-text\">A single tender with fully-defined specifications; bids invited, evaluated and awarded in one round.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 1 (EoI)<\/div><div class=\"fs-title\">Expression of Interest<\/div><div class=\"fs-text\">Where the solution is not pre-definable, an <strong>EoI<\/strong> first explores the market and refines specifications.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 2<\/div><div class=\"fs-title\">Detailed tender<\/div><div class=\"fs-text\">A detailed tender follows. A <strong>\"non-committal EoI\"<\/strong> (open to non-shortlisted bidders too) should be rare and carry no bid security.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-channels\">\n <span class=\"section-badge slate\">\u00a7 4.17<\/span>\n <h3>Channels of procurement & direct purchase on GeM<\/h3>\n <\/div>\n\n <p>Procurement runs through manual bids, e-procurement platforms or GeM \u2014 but receiving bids through <strong>e-procurement portals is mandatory<\/strong> (mixing electronic and manual bids is poor practice). On GeM, the direct-purchase route depends on value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">\u2264 Rs 50,000<\/div><div class=\"st-cap\">Any supplier on GeM <strong>meeting the requirement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rs 50k \u2013 Rs 10 L<\/div><div class=\"st-cap\">GeM seller with the <strong>lowest price<\/strong> among \u2265 3 different manufacturers<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">> Rs 10 lakh<\/div><div class=\"st-cap\">Through GeM <strong>bidding \/ reverse auction<\/strong><\/div><\/div>\n <\/div>\n\n <p>Where an item is available on GeM, it cannot be bought of the same specification outside GeM (subject to the GeMAR&PTS check).<\/p>\n\n \n <div class=\"ix\" id=\"quiz4\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 4 Quiz \u2014 modes, thresholds & channels<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 4. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage4\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c4-recap\">\n <div class=\"recap-title\">⚡ Chapter 4 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Mode = which R?<\/td><td>The <strong>\"Right Source\"<\/strong> of the Five R's<\/td><\/tr>\n <tr><td>Five families<\/td><td>Advertised \u00b7 Pre-Qualification \u00b7 Restricted \u00b7 Nomination \u00b7 Shopping<\/td><\/tr>\n <tr><td>Default mode<\/td><td><strong>Open Tender Enquiry<\/strong> (OTE), above Rs 50 lakh \u2014 Rule 161<\/td><\/tr>\n <tr><td>GTE restriction<\/td><td>No GTE <strong>up to Rs 200 crore<\/strong> without DoE-designated approval<\/td><\/tr>\n <tr><td>Rate Contract<\/td><td><strong>No quantity<\/strong> guaranteed; agreement on rate<\/td><\/tr>\n <tr><td>LTE<\/td><td>Up to <strong>Rs 50 lakh<\/strong>; <strong>> 3<\/strong> vendors \u2014 Rule 162<\/td><\/tr>\n <tr><td>SLTE<\/td><td>Above Rs 50 lakh, <strong>exceptional<\/strong> circumstances<\/td><\/tr>\n <tr><td>Nomination modes<\/td><td><strong>PAC<\/strong> & <strong>STE<\/strong> (single source) \u2014 Rule 166<\/td><\/tr>\n <tr><td>Direct (petty)<\/td><td>\u2264 <strong>Rs 50,000<\/strong>\/case \u2014 Rule 154<\/td><\/tr>\n <tr><td>Purchase Committee<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong>, 3 members \u2014 Rule 155<\/td><\/tr>\n <tr><td>GeM direct purchase<\/td><td>\u226450k any seller \u00b7 50k\u201310L lowest of \u22653 mfrs \u00b7 >10L bidding\/RA<\/td><\/tr>\n <tr><td>Bid channel<\/td><td><strong>e-procurement mandatory<\/strong>; no mixing with manual bids<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch5\" data-chapter=\"5\">\n\n <div class=\"chapter-heading-block\" id=\"c5-tdoc\">\n <span class=\"chapter-badge\">CH 5 \u00b7 BID INVITATION<\/span>\n <h2>Bid Invitation Process<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The tender document (5.1)<\/div>\n <div class=\"def-text\">\n The tender document is the <strong>fundamental document<\/strong> of public procurement \u2014 after award it becomes part of the contract. Clauses must be clear, self-contained and unambiguous to avoid disputes, delays and quality compromises. The Department of Expenditure has issued <strong>Model Tender Documents (MTDs)<\/strong> \u2014 Goods and Non-Consultancy Services (October 2021) and Consultancy Services (April 2023) \u2014 which entities customise for each procurement. A bid quoting <strong>NIL charges<\/strong> is treated as unresponsive.\n <\/div>\n <\/div>\n\n <p>Under Rule 168 a tender document is built from eight ordered sections, followed by the financial bid and the forms:<\/p>\n <ol class=\"parts-list roman blue\">\n <li>Notice Inviting Tender (NIT) and the Tender Information Sheet.<\/li>\n <li>Instructions to Bidders (ITB).<\/li>\n <li>Appendix to ITB (AITB).<\/li>\n <li>General Conditions of Contract (GCC).<\/li>\n <li>Special Conditions of Contract (SCC).<\/li>\n <li>Schedule of Requirements.<\/li>\n <li>Technical Specifications and Quality Assurance.<\/li>\n <li>Qualification and Evaluation Criteria.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">Anatomy of a tender document (Rule 168) \u2014 5.1.3<\/div>\n <svg viewBox=\"0 0 660 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"The eight sections of a tender document\">\n<rect x=\"70\" y=\"20\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"20\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"20\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"43.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">I<\/text>\n<text x=\"130\" y=\"43.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Notice Inviting Tender (NIT)<\/text>\n<rect x=\"70\" y=\"63\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"63\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"63\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"86.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">II<\/text>\n<text x=\"130\" y=\"86.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Instructions to Bidders (ITB)<\/text>\n<rect x=\"70\" y=\"106\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\" opacity=\"0.12\" stroke=\"#2d8ecf\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"106\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\"\/>\n<rect x=\"104\" y=\"106\" width=\"14\" height=\"36\" fill=\"#2d8ecf\"\/>\n<text x=\"93\" y=\"129.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">III<\/text>\n<text x=\"130\" y=\"129.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Appendix to ITB (AITB)<\/text>\n<rect x=\"70\" y=\"149\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"149\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"149\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"172.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">IV<\/text>\n<text x=\"130\" y=\"172.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">General Conditions (GCC)<\/text>\n<rect x=\"70\" y=\"192\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"192\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"192\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"215.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">V<\/text>\n<text x=\"130\" y=\"215.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Special Conditions (SCC)<\/text>\n<rect x=\"70\" y=\"235\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"235\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"235\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"258.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VI<\/text>\n<text x=\"130\" y=\"258.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Schedule of Requirements<\/text>\n<rect x=\"70\" y=\"278\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"278\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"278\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"301.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VII<\/text>\n<text x=\"130\" y=\"301.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Technical Specs & QA<\/text>\n<rect x=\"70\" y=\"321\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"321\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\"\/>\n<rect x=\"104\" y=\"321\" width=\"14\" height=\"36\" fill=\"#7e3eb5\"\/>\n<text x=\"93\" y=\"344.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VIII<\/text>\n<text x=\"130\" y=\"344.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Qualification & Evaluation<\/text>\n<\/svg>\n <div class=\"fig-cap\">ITB covers everything up to the announcement of award; <strong>GCC<\/strong> covers everything after award to contract closure. Exceptional changes go into the <strong>AITB<\/strong> and <strong>SCC<\/strong>, which supersede the standing ITB\/GCC.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-filters\">\n <span class=\"section-badge teal\">\u00a7 5.1.3<\/span>\n <h3>Three filters \u2014 eligibility, qualification & evaluation<\/h3>\n <\/div>\n\n <p>The criteria in the tender document act as <strong>three successive filters<\/strong>, each narrowing the field; no criterion that cannot be verified may be used, and any criterion not stated in the tender cannot later be applied.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How the criteria narrow the field<\/div>\n <svg viewBox=\"0 0 640 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Three filters narrowing bidders to the awarded bidder\">\n<polygon points=\"70,28 570,28 520,80 120,80\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"59.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">All bids<\/text>\n<polygon points=\"120,92 520,92 470,144 170,144\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"123.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Eligibility<\/text>\n<polygon points=\"170,156 470,156 415,208 225,208\" fill=\"#0e8f7a\" opacity=\"0.16\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"187.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Qualification<\/text>\n<polygon points=\"225,220 415,220 360,272 280,272\" fill=\"#7e3eb5\" opacity=\"0.16\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"251.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Evaluation<\/text>\n<rect x=\"250\" y=\"276\" width=\"140\" height=\"20\" rx=\"6\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"290\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"800\" fill=\"#ffd95a\">AWARD<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Eligibility<\/strong> decides who may participate; <strong>qualification<\/strong> tests capability to perform; <strong>evaluation<\/strong> picks the most advantageous bid (beyond price, criteria may include quality, life-cycle\/running cost, after-sales service and delivery period).<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">3 weeks<\/div><div class=\"st-cap\">Minimum time normally allowed for bidders to prepare<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4 weeks<\/div><div class=\"st-cap\">Where <strong>international<\/strong> participation is contemplated<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">90 days<\/div><div class=\"st-cap\">Default <strong>bid validity<\/strong> if not otherwise specified<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">NIL = void<\/div><div class=\"st-cap\">A bid quoting NIL charges is <strong>unresponsive<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-publish\">\n <span class=\"section-badge purple\">\u00a7 5.2<\/span>\n <h3>Publication, pre-bid conference & submission<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Publish<\/div><div class=\"cat-title\">GeM & CPPP<\/div><p>NIT and the full tender document are published on <strong>GeM and GeM-CPPP<\/strong> (and the entity's own website); documents are <strong>free to download<\/strong>; time-stamped audit trails are kept. A limited-tender NIT carries a note that it is for information only and participation is by invitation.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Clarify<\/div><div class=\"cat-title\">Pre-bid conference<\/div><p>For <strong>turnkey or sophisticated, costly<\/strong> equipment, one or more pre-bid conferences (or online) clarify the tender; resulting <strong>corrigenda\/clarifications<\/strong> are issued with mandatory timelines and published.<\/p><\/div>\n <\/div>\n\n <p>Bids are uploaded by the deadline (server clock is the reference); <strong>no manual bids<\/strong> are accepted in e-procurement. A bid valid for a shorter period than required is rejected as non-responsive. Bid security (or a permitted Bid Securing Declaration) must accompany the bid.<\/p>\n\n <div class=\"section-heading-block\" id=\"c5-open\">\n <span class=\"section-badge slate\">\u00a7 5.3<\/span>\n <h3>Opening of bids<\/h3>\n <\/div>\n\n <div class=\"flow\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Open publicly<\/div><div class=\"fs-text\">The Bid Opening Committee (BOC) opens bids immediately after the deadline, before attending bidders' representatives (who carry a letter of authority).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Number & initial<\/div><div class=\"fs-text\">Each bid is serially numbered and initialled with date\/time; salient features are read out. <strong>Late bids are not considered<\/strong> (Rule 165).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Record<\/div><div class=\"fs-text\">A signed bid-opening report is prepared and handed to the Tender Committee. The BOC <strong>cannot reject<\/strong> any bid at the opening stage.<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz5\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 5 Quiz \u2014 tender documents, criteria & opening<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 5. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage5\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c5-recap\">\n <div class=\"recap-title\">⚡ Chapter 5 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Tender document contents<\/td><td><strong>Rule 168<\/strong>; eight sections (NIT\/TIS \u2192 Qualification & Evaluation)<\/td><\/tr>\n <tr><td>ITB vs GCC<\/td><td>ITB = up to award; GCC = after award; AITB\/SCC override<\/td><\/tr>\n <tr><td>Three filters<\/td><td>Eligibility \u2192 Qualification \u2192 Evaluation<\/td><\/tr>\n <tr><td>Unverifiable criteria<\/td><td>Cannot be used; criteria must be in the tender<\/td><\/tr>\n <tr><td>Minimum bid time<\/td><td><strong>3 weeks<\/strong> (national) \u00b7 <strong>4 weeks<\/strong> (international)<\/td><\/tr>\n <tr><td>Default bid validity<\/td><td><strong>90 days<\/strong><\/td><\/tr>\n <tr><td>NIL quote<\/td><td>Treated as <strong>unresponsive<\/strong><\/td><\/tr>\n <tr><td>Publication<\/td><td><strong>GeM & CPPP<\/strong>; documents free to download<\/td><\/tr>\n <tr><td>Pre-bid conference<\/td><td>For turnkey \/ sophisticated costly equipment<\/td><\/tr>\n <tr><td>Late bids<\/td><td><strong>Not considered<\/strong> (Rule 165); BOC cannot reject at opening<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch6\" data-chapter=\"6\">\n\n <div class=\"chapter-heading-block\" id=\"c6-sec\">\n <span class=\"chapter-badge\">CH 6 \u00b7 SECURITIES & PRICES<\/span>\n <h2>Forms of Securities, Prices, Payment Terms & Price Variations<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Why securities exist (6.1)<\/div>\n <div class=\"def-text\">\n Securities protect the procuring entity at two points: a <strong>Bid Security (EMD)<\/strong> guards against a bidder withdrawing or altering its bid during validity; a <strong>Performance Security<\/strong> guards against non-performance of the contract. For goods, the need for performance security depends on the market and commercial practice. Each form of security applies over a different window of the procurement lifecycle.\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">Securities across the procurement lifecycle (6.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"When each form of security applies across the procurement lifecycle\">\n<line x1=\"60\" y1=\"48\" x2=\"210\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"135.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Bidding<\/text>\n<line x1=\"60\" y1=\"42\" x2=\"60\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"210\" y1=\"48\" x2=\"330\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"270.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Award<\/text>\n<line x1=\"210\" y1=\"42\" x2=\"210\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"330\" y1=\"48\" x2=\"520\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"425.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Execution<\/text>\n<line x1=\"330\" y1=\"42\" x2=\"330\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"520\" y1=\"48\" x2=\"650\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"585.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Warranty<\/text>\n<line x1=\"520\" y1=\"42\" x2=\"520\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"650\" y1=\"42\" x2=\"650\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<rect x=\"60\" y=\"80\" width=\"210\" height=\"34\" rx=\"7\" fill=\"#1c5da6\"\/>\n<text x=\"72\" y=\"102\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Bid Security<\/text>\n<text x=\"260\" y=\"102\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">2\u20135%<\/text>\n<rect x=\"210\" y=\"128\" width=\"370\" height=\"34\" rx=\"7\" fill=\"#0e8f7a\"\/>\n<text x=\"222\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Performance Security<\/text>\n<text x=\"570\" y=\"150\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">3\u20135%<\/text>\n<rect x=\"505\" y=\"176\" width=\"145\" height=\"34\" rx=\"7\" fill=\"#c97c10\"\/>\n<text x=\"517\" y=\"198\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Warranty BG<\/text>\n<text x=\"640\" y=\"198\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">10%<\/text>\n<\/svg>\n <div class=\"fig-cap\">Bid Security may be a demand draft, banker's cheque, bank guarantee, insurance surety bond or online payment; above <strong>Rs 5 lakh<\/strong> (and for foreign GTE bidders) it must be a <strong>bank guarantee<\/strong>. In goods, retaining performance security from running bills is <strong>not<\/strong> acceptable.<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">2\u20135%<\/div><div class=\"st-cap\"><strong>Bid Security \/ EMD<\/strong> of estimated value (Rule 170)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">3\u20135%<\/div><div class=\"st-cap\"><strong>Performance Security<\/strong> of contract value (3\u201310% for Works) \u2014 Rule 171<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">10%<\/div><div class=\"st-cap\"><strong>Warranty BG<\/strong> on capital equipment, valid 60 days beyond warranty<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">\u2264 Rs 50 L<\/div><div class=\"st-cap\"><strong>No Performance Security<\/strong> needed up to this tender value<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">14\u201328 days<\/div><div class=\"st-cap\">Performance Security furnished after award notification<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">30 days<\/div><div class=\"st-cap\">Bid Security returned to unsuccessful bidders by 30th day after award<\/div><\/div>\n <\/div>\n\n <p>A <strong>Bid Securing Declaration (BSD)<\/strong> may replace bid security (with CA approval): withdrawing\/modifying the bid, or failing to furnish performance security or sign the contract, is treated as a breach of the Code of Integrity and the bidder is suspended. <strong>MSEs and DPIIT-recognised start-ups are exempt from EMD.<\/strong><\/p>\n\n <div class=\"section-heading-block\" id=\"c6-isb\">\n <span class=\"section-badge teal\">\u00a7 6.1.3–6.1.4<\/span>\n <h3>Insurance Surety Bond & the electronic bank guarantee<\/h3>\n <\/div>\n\n <p>An <strong>Insurance Surety Bond (ISB)<\/strong> is a three-cornered assurance: the <strong>principal<\/strong> (the contractor\/supplier) obtains the bond from a <strong>surety insurer<\/strong> (an insurance company), which assures performance to the <strong>beneficiary<\/strong> (the procuring entity). It is premium-based and needs no collateral; if the principal does not pay within 14 days of a valid claim, the surety pays the beneficiary within 45 calendar days.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">The Insurance Surety Bond \u2014 a three-party assurance<\/div>\n <svg viewBox=\"0 0 640 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Insurance Surety Bond three-party relationship\">\n<line x1=\"320\" y1=\"47\" x2=\"422\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"422\" y1=\"224\" x2=\"218\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"218\" y1=\"224\" x2=\"320\" y2=\"47\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<circle cx=\"320\" cy=\"47\" r=\"56\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"320\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">PRINCIPAL<\/text>\n<circle cx=\"422\" cy=\"224\" r=\"56\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"422\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">SURETY<\/text>\n<text x=\"422\" y=\"236\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">INSURER<\/text>\n<circle cx=\"218\" cy=\"224\" r=\"56\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"218\" y=\"229\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">BENEFICIARY<\/text>\n<\/svg>\n <div class=\"fig-cap\">An <strong>electronic Bank Guarantee (e-BG)<\/strong> is a dematerialised BG processed on the <strong>NeSL<\/strong> portal (24\/7); verification with NeSL is sufficient and verification with the issuing bank is not required.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c6-advance\">\n <span class=\"section-badge amber\">\u00a7 6.5<\/span>\n <h3>Advance payments<\/h3>\n <\/div>\n\n <p>Ordinarily payment follows supply; advance payment is exceptional \u2014 justified where a contractor must sink substantial funds before payment falls due, given the Government's lower cost of funds. It is anticipated at the planning stage and declared in the tender document.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">40%<\/div><div class=\"st-cap\">Ceiling of advance to a <strong>State \/ Central Government agency or PSE<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">110%<\/div><div class=\"st-cap\">Bank guarantee (or e-BG) to secure an advance \u2014 at least 110% of it<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2265 2<\/div><div class=\"st-cap\">Advance paid in <strong>at least two instalments<\/strong>; recovered against milestones<\/div><\/div>\n <\/div>\n <p>Advances are normally <strong>interest-free<\/strong> only where the tender so provided; otherwise a suitable interest rate (e.g. the GPF rate) applies. Milestone \/ stage \/ part-payments against proof of dispatch are <strong>not<\/strong> treated as advances (Rule 172(2)).<\/p>\n\n <div class=\"section-heading-block\" id=\"c6-prices\">\n <span class=\"section-badge purple\">\u00a7 6.6–6.7<\/span>\n <h3>Firm vs variable price, and exchange-rate variation<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:22%\"><col style=\"width:39%\"><col style=\"width:39%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Firm & Fixed Price<\/th><th>Variable Price (PVC)<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">When used<\/td><td>Deliveries up to <strong>12 months<\/strong> \u2014 the normal case.<\/td><td>Deliveries <strong>longer than 12 months<\/strong>, where input costs may move materially.<\/td><\/tr>\n <tr><td class=\"label-cell\">Mechanism<\/td><td>Price not subject to variation during the contract.<\/td><td>A <strong>Price Variation Clause<\/strong> adjusts for changes in labour, material and fuel\/power against reliable indices.<\/td><\/tr>\n <tr><td class=\"label-cell\">Safeguards<\/td><td>\u2014<\/td><td>Specify a <strong>base date<\/strong>, a <strong>time-lag<\/strong> and a <strong>ceiling<\/strong>; the entity should give its own PVC formula and base dates.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For contracts with significant foreign-exchange content and a delivery period exceeding one year, an <strong>Exchange Rate Variation (ERV)<\/strong> clause works out variation from a stated base date. Imports are commonly paid through a <strong>Letter of Credit<\/strong> (governed by UCP 600).<\/p>\n\n \n <div class=\"ix\" id=\"quiz6\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 6 Quiz \u2014 securities, advances & prices<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 6. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage6\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c6-recap\">\n <div class=\"recap-title\">⚡ Chapter 6 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Bid Security \/ EMD<\/td><td><strong>2\u20135%<\/strong> of estimated value (Rule 170); valid 45 days beyond bid validity<\/td><\/tr>\n <tr><td>Bid Security form<\/td><td>> <strong>Rs 5 lakh<\/strong> \/ foreign GTE \u2192 bank guarantee<\/td><\/tr>\n <tr><td>EMD exemption<\/td><td><strong>MSEs & DPIIT start-ups<\/strong>; BSD may replace EMD<\/td><\/tr>\n <tr><td>Performance Security<\/td><td><strong>3\u20135%<\/strong> of contract value (Rule 171); 3\u201310% for Works<\/td><\/tr>\n <tr><td>No Performance Security<\/td><td>Up to a tender value of <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Perf. Security validity<\/td><td><strong>60 days<\/strong> beyond all obligations incl. warranty<\/td><\/tr>\n <tr><td>Warranty BG<\/td><td><strong>10%<\/strong> on capital equipment<\/td><\/tr>\n <tr><td>Insurance Surety Bond<\/td><td>3 parties; premium-based, no collateral<\/td><\/tr>\n <tr><td>e-BG<\/td><td>On <strong>NeSL<\/strong>; NeSL verification sufficient<\/td><\/tr>\n <tr><td>Advance to Govt\/PSE<\/td><td>Up to <strong>40%<\/strong>; secured by \u2265110% BG; \u22652 instalments<\/td><\/tr>\n <tr><td>Firm price<\/td><td>Deliveries up to <strong>12 months<\/strong><\/td><\/tr>\n <tr><td>Variable price (PVC)<\/td><td>Deliveries > 12 months; base date, time-lag, ceiling<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch7\" data-chapter=\"7\">\n\n <div class=\"chapter-heading-block\" id=\"c7-eval\">\n <span class=\"chapter-badge\">CH 7 \u00b7 EVALUATION & AWARD<\/span>\n <h2>Bid Evaluation & Award of Contract<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The cardinal rule of evaluation (7.1)<\/div>\n <div class=\"def-text\">\n Bids are evaluated <strong>strictly on the terms of the tender document<\/strong> and the bids themselves \u2014 no hearsay, no undeclared condition, no overlooking or relaxing an essential condition. The aim is that <strong>no bidder gains undue advantage<\/strong> at the cost of others or of the procuring entity, and that a preference does not collapse the field to a single vendor.\n <\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">> Rs 50 L<\/div><div class=\"st-cap\">Above this, a <strong>3-member Tender Committee<\/strong> evaluates (incl. a finance member & user rep)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 173(xxii)<\/div><div class=\"st-cap\">No TC member may <strong>report directly<\/strong> to another, where value > Rs 50 lakh<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2260<\/div><div class=\"st-cap\">The <strong>recommending<\/strong> authority must not also be the <strong>accepting<\/strong> authority<\/div><\/div>\n <\/div>\n\n <p>Below the <strong>direct-acceptance threshold<\/strong> in the SoPP, the competent authority may evaluate directly without a Tender Committee. Above it, the Tender Committee runs the evaluation through successive gates:<\/p>\n\n <p>Evaluation runs through four gates before award: <strong>preliminary examination<\/strong> (responsiveness) \u2192 <strong>qualification<\/strong> (capability) \u2192 <strong>financial evaluation<\/strong> (determining L1) \u2192 <strong>award<\/strong>. Bids found unresponsive or unqualified drop out at the relevant gate.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The bid-evaluation pipeline (7.3–7.6)<\/div>\n <svg viewBox=\"0 0 700 190\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Bid evaluation pipeline\">\n<defs><marker id=\"pp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><marker id=\"dr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#c0392b\"\/><\/marker><\/defs>\n<rect x=\"20\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#41617f\"\/>\n<text x=\"76.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">All bids<\/text>\n<line x1=\"132\" y1=\"66.0\" x2=\"154\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"154\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"210.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Preliminary<\/text>\n<line x1=\"266\" y1=\"66.0\" x2=\"288\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"210.0\" y1=\"92\" x2=\"210.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"210.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unresponsive<\/text>\n<rect x=\"288\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"344.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Qualification<\/text>\n<line x1=\"400\" y1=\"66.0\" x2=\"422\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"344.0\" y1=\"92\" x2=\"344.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"344.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unqualified<\/text>\n<rect x=\"422\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#c97c10\"\/>\n<text x=\"478.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Financial<\/text>\n<line x1=\"534\" y1=\"66.0\" x2=\"556\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"556\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"612.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<\/svg>\n <div class=\"fig-cap\">A comparative statement of quotations is prepared (except up to Rs 50 lakh) and may be vetted by integrated Finance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c7-prelim\">\n <span class=\"section-badge red\">\u00a7 7.3<\/span>\n <h3>Preliminary examination \u2014 responsive vs unresponsive<\/h3>\n <\/div>\n\n <p>Only <strong>substantively responsive<\/strong> bids \u2014 complete and conforming to the tender's essential terms without substantive deviation \u2014 proceed. Among the grounds on which a bid is ignored as <strong>unresponsive<\/strong>:<\/p>\n <ol class=\"parts-list decimal red\">\n <li>Not in the prescribed format, or <strong>unsigned<\/strong> as required.<\/li>\n <li><strong>EMD not provided<\/strong>, or exemption claimed without acceptable proof.<\/li>\n <li>Bidder <strong>not eligible<\/strong> per the eligibility criteria (including conflict of interest \/ CIPP).<\/li>\n <li>Quoted goods of another manufacturer <strong>without the required authority letter<\/strong>.<\/li>\n <li>Departs from <strong>essential requirements<\/strong> (e.g. refuses to give performance security), or has not quoted for the <strong>entire schedule<\/strong>.<\/li>\n <li><strong>Conditional, multiple or alternative<\/strong> bids where not expressly permitted; or bid validity shorter than required.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c7-discrep\">\n <span class=\"section-badge slate\">\u00a7 7.3.2–7.3.4<\/span>\n <h3>Resolving discrepancies & classifying deviations<\/h3>\n <\/div>\n\n <p>Where figures and words (or copies) disagree, fixed rules decide <strong>what prevails<\/strong>:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Unit vs total<\/div><div class=\"cat-title\">Unit price prevails<\/div><p>If unit price × quantity \u2260 the stated total, the <strong>unit price<\/strong> governs and the total is corrected.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Sub-total vs total<\/div><div class=\"cat-title\">Sub-totals prevail<\/div><p>If a grand total mis-adds the sub-totals, the <strong>sub-totals<\/strong> govern and the total is corrected.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Words vs figures<\/div><div class=\"cat-title\">Words prevail<\/div><p>Between an amount in words and in figures, the amount <strong>in words<\/strong> governs. Original prevails over a scanned copy.<\/p><\/div>\n <\/div>\n\n <p class=\"compare-intro\">A <strong>deviation, reservation or omission<\/strong> is either substantive (reject) or minor (may be condoned):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:38%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Type<\/th><th>Substantive deviation \u2192 reject<\/th><th>Minor deviation \u2192 may accept<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Test<\/td><td>Affects scope\/quality\/performance; limits the entity's rights or the bidder's obligations; or its rectification would unfairly affect other bidders' competitive position.<\/td><td>Missing pages, illegibility, fewer copies \u2014 issues with <strong>no fiscal impact<\/strong> that do not change the ranking or grant any undue advantage.<\/td><\/tr>\n <tr><td class=\"label-cell\">Action<\/td><td>Rejected as non-responsive (deviations may be accepted only in STE\/PAC, with reasons recorded).<\/td><td>Bidder asked to clarify by a target date; an evasive\/no reply makes the bid liable to rejection.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c7-award\">\n <span class=\"section-badge purple\">\u00a7 7.6<\/span>\n <h3>Award of contract \u2014 reasonableness, low bids & parallel contracts<\/h3>\n <\/div>\n\n <p>Every Tender Committee recommendation must declare the price <strong>reasonable<\/strong>, judged mainly against the <strong>Last Purchase Price (LPP)<\/strong> updated for quantity, delivery and terms (triangulating more than one method). An <strong>abnormally low bid (ALB)<\/strong> may be probed for the bidder's capability to deliver, and rejected if unconvincing.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">L1<\/div><div class=\"st-cap\">Award goes to the <strong>lowest acceptable bidder<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">70 : 30<\/div><div class=\"st-cap\">Typical split when a <strong>parallel contract<\/strong> divides quantity between two<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u00b1 option<\/div><div class=\"st-cap\">A plus\/minus <strong>option clause<\/strong> adjusts quantity; never in development orders<\/div><\/div>\n <\/div>\n\n <div class=\"callout red\">\n <div class=\"callout-label\">Negotiations (Rule 173(xiv)) \u2014 handle with great care<\/div>\n <p>Price negotiation after bid opening <strong>must be severely discouraged<\/strong> and used only in exceptional, recorded circumstances. When unavoidable, it is conducted <strong>only with L1<\/strong> \u2014 in <strong>no case<\/strong>, including where cartel rates are suspected, may negotiations be extended to other bidders. A counter-offer to L1 amounts to a negotiation; the original offer stays open if the negotiation fails. If L1's price stays unreasonable, the options are re-tender or escalation to a higher level.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz7\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 7 Quiz \u2014 evaluation, deviations & award<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 7. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage7\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c7-recap\">\n <div class=\"recap-title\">⚡ Chapter 7 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Evaluation basis<\/td><td>Strictly the tender document & the bids; no undeclared conditions<\/td><\/tr>\n <tr><td>Tender Committee<\/td><td><strong>3 members<\/strong> (incl. finance + user) above <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Independence<\/td><td><strong>Rule 173(xxii)<\/strong> \u2014 no direct-report members; recommending \u2260 accepting<\/td><\/tr>\n <tr><td>Comparative statement<\/td><td>Prepared except up to <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Responsive bid<\/td><td>Complete, no substantive deviation<\/td><\/tr>\n <tr><td>Unit vs total<\/td><td><strong>Unit price<\/strong> prevails<\/td><\/tr>\n <tr><td>Words vs figures<\/td><td><strong>Words<\/strong> prevail; original over scanned copy<\/td><\/tr>\n <tr><td>Deviation<\/td><td>Substantive \u2192 reject; minor \u2192 may condone (no fiscal\/ranking impact)<\/td><\/tr>\n <tr><td>Reasonableness<\/td><td>Judged mainly against the <strong>Last Purchase Price<\/strong><\/td><\/tr>\n <tr><td>Parallel contract split<\/td><td><strong>70 : 30<\/strong> (two suppliers)<\/td><\/tr>\n <tr><td>Negotiation<\/td><td>Discouraged; <strong>only with L1<\/strong> (Rule 173(xiv)); never others<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch8\" data-chapter=\"8\">\n\n <div class=\"chapter-heading-block\" id=\"c8-emerg\">\n <span class=\"chapter-badge\">CH 8 \u00b7 UNIQUE FEATURES<\/span>\n <h2>Procurements with Unique Features<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">When the standard route does not fit (8.1)<\/div>\n <div class=\"def-text\">\n Some procurements need special handling \u2014 operational emergencies, capital equipment, maintenance, buy-back of old assets, turnkey supply and print media. The guidelines already carry <strong>fast-track modes and flexibilities<\/strong>; enhanced delegations may be built into the SoPP so that an emergency does not force a departure from process.\n <\/div>\n <\/div>\n\n <p>For an operational emergency the suggested modes, fastest first, are: <strong>GeM portal<\/strong> \u2192 <strong>direct purchase without quotation<\/strong> \u2192 <strong>Purchase Committee<\/strong> \u2192 <strong>SLTE \/ LTE \/ STE with reduced bid time<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Fast-track modes in order of speed (8.1)<\/div>\n <svg viewBox=\"0 0 700 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Fast-track procurement modes in order of speed\">\n<defs><marker id=\"spd\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#spd)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">FASTEST<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">MORE TIME<\/text>\n<rect x=\"22\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<circle cx=\"97.0\" cy=\"98\" r=\"17\" fill=\"#0e8f7a\"\/>\n<text x=\"97.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"97.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#0e8f7a\">GeM portal<\/text>\n<rect x=\"182\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<circle cx=\"257.0\" cy=\"98\" r=\"17\" fill=\"#1c5da6\"\/>\n<text x=\"257.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"257.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#1c5da6\">Direct (no quote)<\/text>\n<rect x=\"342\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<circle cx=\"417.0\" cy=\"98\" r=\"17\" fill=\"#c97c10\"\/>\n<text x=\"417.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"417.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">Purchase Committee<\/text>\n<rect x=\"502\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<circle cx=\"577.0\" cy=\"98\" r=\"17\" fill=\"#7e3eb5\"\/>\n<text x=\"577.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"577.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#7e3eb5\">SLTE \/ LTE \/ STE<\/text>\n<\/svg>\n <div class=\"fig-cap\">In a declared crisis (disaster\/pandemic), reasonableness is judged knowing prices may be higher; Model Tender Documents and standard GCC do not apply to emergency procurement.<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Crisis dispensations (with competent-authority approval)<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">SELF-DECL<\/span><span class=\"nl-text\">Eligibility\/qualification by <strong>vendor self-declaration<\/strong> (with penalties for false declarations); physical inspection replaced by self-declared quality.<\/span><\/li>\n <li><span class=\"nl-tag\">TIMELINES<\/span><span class=\"nl-text\">Bid-submission time shortened to <strong>1\u20133 days<\/strong>; bids by phone, email or in person; single-stage single-envelope; <strong>even a single offer may be accepted<\/strong> without re-tendering.<\/span><\/li>\n <li><span class=\"nl-tag\">RELAX<\/span><span class=\"nl-text\">Tender cost, <strong>EMD, performance security, LD, negotiations<\/strong> and vendor-registration fees may be relaxed or dispensed with; documents kept to the bare minimum.<\/span><\/li>\n <li><span class=\"nl-tag\">AUDIT<\/span><span class=\"nl-text\">After the crisis ends, special time-bound internal and external audits with a <strong>large sample size<\/strong>; undelivered contracts reviewed for cancellation.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c8-capital\">\n <span class=\"section-badge blue\">\u00a7 8.3–8.6<\/span>\n <h3>Capital goods, AMC, NPV & turnkey<\/h3>\n <\/div>\n\n <p>Capital goods (machinery & plant, IT systems) create lasting assets and carry a long life \u2014 so their acquisition is an <strong>investment decision<\/strong> against an item-specific budget. What you pay to buy is only the visible tip of the cost:<\/p>\n\n <p>Beneath the visible purchase price lie the larger lifetime costs: <strong>installation & commissioning<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance & AMC<\/strong>, <strong>spares & training<\/strong>, and <strong>disposal<\/strong> at the end of life \u2014 together the Total Cost of Ownership.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Total Cost of Ownership \u2014 the iceberg (8.3)<\/div>\n <svg viewBox=\"0 0 640 360\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Total Cost of Ownership iceberg for capital goods\">\n<rect x=\"0\" y=\"120\" width=\"640\" height=\"240\" fill=\"#2d8ecf\" opacity=\"0.07\"\/>\n<line x1=\"0\" y1=\"120\" x2=\"640\" y2=\"120\" stroke=\"#2d8ecf\" stroke-width=\"1.5\" stroke-dasharray=\"6 5\"\/>\n<text x=\"628\" y=\"113\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-style=\"italic\" fill=\"#2d8ecf\">waterline<\/text>\n<polygon points=\"320,42 248,120 392,120\" fill=\"#1c5da6\"\/>\n<text x=\"320\" y=\"92\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Purchase<\/text>\n<text x=\"320\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">price<\/text>\n<polygon points=\"248,120 392,120 472,344 168,344\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"156\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Installation & commissioning<\/text>\n<text x=\"320\" y=\"188\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Operation & consumables<\/text>\n<text x=\"320\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Maintenance & AMC<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Spares & training<\/text>\n<text x=\"320\" y=\"284\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Disposal at end of life<\/text>\n<text x=\"320\" y=\"324\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#9ec3e6\">Total Cost of Ownership<\/text>\n<\/svg>\n <div class=\"fig-cap\">Because lifetime operating, maintenance and disposal costs can outweigh the purchase price, evaluation may build in initial spares and the <strong>NPV of AMC<\/strong> over the equipment's life.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal blue\">\n <li><strong>Alternatives to owning<\/strong> \u2014 hire, hire-purchase, lease, or buying the functionality \"as a service\" (useful where equipment, e.g. IT, ages fast).<\/li>\n <li><strong>Bundled elements<\/strong> \u2014 installation, commissioning, training, trials, warranty, post-warranty maintenance and assured spares; 2-year initial spares may be required.<\/li>\n <li><strong>Turnkey<\/strong> \u2014 where several machines\/components and third-party works act in tandem, an all-encompassing turnkey contract (manufacture \u2192 install \u2192 commission) may be better (8.6).<\/li>\n <li><strong>Pre-qualification fit<\/strong> \u2014 experience, capacity and financial strength drive quality and after-sales support, so capital goods suit pre-qualification bidding.<\/li>\n <\/ol>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 169<\/div><div class=\"st-cap\"><strong>AMC<\/strong> starts only after the warranty period; OEM or a competent firm<\/div><\/div>\n <div class=\"stat-tile blue\"><div class=\"st-num\">7%<\/div><div class=\"st-cap\">Illustrative <strong>discount rate<\/strong> for NPV; computed via the Excel NPV function<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Rule 176<\/div><div class=\"st-cap\"><strong>Buy-back<\/strong> \u2014 quote price with and without a rebate for the old item<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 = discount<\/div><div class=\"st-cap\"><strong>Books\/print media<\/strong> \u2014 quoted as net discount on published price<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz8\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 8 Quiz \u2014 emergencies, capital goods & AMC<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 8. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage8\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c8-recap\">\n <div class=\"recap-title\">⚡ Chapter 8 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Fastest emergency mode<\/td><td><strong>GeM<\/strong> \u2192 Direct \u2192 Purchase Committee \u2192 SLTE\/LTE\/STE (reduced time)<\/td><\/tr>\n <tr><td>Crisis bid time<\/td><td>Shortened to <strong>1\u20133 days<\/strong>; single offer acceptable<\/td><\/tr>\n <tr><td>Crisis & MTD\/GCC<\/td><td>Model Tender Documents & standard GCC <strong>do not apply<\/strong><\/td><\/tr>\n <tr><td>Below Rs 50,000 in crisis<\/td><td>Local purchase allowed even if item is on GeM<\/td><\/tr>\n <tr><td>Buy-back<\/td><td><strong>Rule 176<\/strong>; quote with & without rebate<\/td><\/tr>\n <tr><td>Capital goods<\/td><td>Item-specific budget; an <strong>investment decision<\/strong><\/td><\/tr>\n <tr><td>TCO<\/td><td>Lifetime O&M + disposal may outweigh purchase price<\/td><\/tr>\n <tr><td>AMC<\/td><td><strong>Rule 169<\/strong>; starts after warranty; OEM or competent firm<\/td><\/tr>\n <tr><td>NPV discount rate<\/td><td><strong>7%<\/strong> (illustrative); Excel NPV function<\/td><\/tr>\n <tr><td>Books \/ print media<\/td><td>L1 = the <strong>best net discount<\/strong> on published price<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch9\" data-chapter=\"9\">\n\n <div class=\"chapter-heading-block\" id=\"c9-cm\">\n <span class=\"chapter-badge\">CH 9 \u00b7 CONTRACT MANAGEMENT<\/span>\n <h2>Contract Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">From signed contract to delivered goods (9.1)<\/div>\n <div class=\"def-text\">\n Contract management is the active stewardship of a contract after award \u2014 ensuring the goods are delivered to specification, on time and at the agreed cost, with risks managed to a clean closure. It runs across several control domains:\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The contract-management lifecycle<\/div>\n <svg viewBox=\"0 0 720 120\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Contract management lifecycle\">\n<defs><marker id=\"cl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<rect x=\"18\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#41617f\"\/>\n<text x=\"68.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<line x1=\"118\" y1=\"62.0\" x2=\"134\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"134\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"184.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Scope & Qty<\/text>\n<line x1=\"234\" y1=\"62.0\" x2=\"250\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"250\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"300.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Time<\/text>\n<line x1=\"350\" y1=\"62.0\" x2=\"366\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"366\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"416.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Quality<\/text>\n<line x1=\"466\" y1=\"62.0\" x2=\"482\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"482\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#7e3eb5\"\/>\n<text x=\"532.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Payment<\/text>\n<line x1=\"582\" y1=\"62.0\" x2=\"598\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"598\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"648.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Closure<\/text>\n<\/svg>\n <div class=\"fig-cap\">The signed contract becomes binding the moment the award is notified; everything after that is execution monitoring.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-qty\">\n <span class=\"section-badge blue\">\u00a7 9.2<\/span>\n <h3>Scope of supply & quantity control<\/h3>\n <\/div>\n\n <p>Minor short\/excess deliveries in the <strong>final consignment<\/strong> are unavoidable and may be treated as completion within a tolerance, without a formal amendment. Where the requirement changes, a <strong>plus\/minus option clause<\/strong> adjusts quantity:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">25\u201330%<\/div><div class=\"st-cap\">Option-clause variation should ideally <strong>not exceed<\/strong> this band<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">50%<\/div><div class=\"st-cap\">Option clause normally exercised after receipt of 50% quantity<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">CA approval<\/div><div class=\"st-cap\">From the authority that approved the original tender decision; none on development orders<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-time\">\n <span class=\"section-badge teal\">\u00a7 9.3<\/span>\n <h3>Time control & liquidated damages<\/h3>\n <\/div>\n\n <p>The delivery period is the <strong>\"essence of the contract\"<\/strong> and must be realistic; vague phrases like \"immediately\" are not legally binding. For staggered supply, slight monthly deviation is tolerated \u2014 <strong>\u00b15% cumulative in a year<\/strong> (\u00b15% in a month \/ \u00b17% per quarter) is not a violation and attracts no LD. Where delivery slips, <strong>Liquidated Damages<\/strong> accrue:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How liquidated damages accrue (9.3.9)<\/div>\n <svg viewBox=\"0 0 660 290\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Liquidated damages accrual capped at five or ten per cent\">\n<defs><marker id=\"ax\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"axr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"64\" y1=\"250\" x2=\"64\" y2=\"34\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#ax)\"\/>\n<line x1=\"64\" y1=\"250\" x2=\"624\" y2=\"250\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#axr)\"\/>\n<text x=\"20\" y=\"145\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 20 145)\">LD %<\/text>\n<text x=\"344.0\" y=\"282\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\">weeks of delay<\/text>\n<line x1=\"64\" y1=\"150\" x2=\"624\" y2=\"150\" stroke=\"#c97c10\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"144\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c97c10\">5% cap<\/text>\n<line x1=\"64\" y1=\"50\" x2=\"624\" y2=\"50\" stroke=\"#c0392b\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"44\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">10% max<\/text>\n<path d=\"M64.0 250.0 L64.0 240.0 L101.9 240.0 L101.9 230.0 L139.7 230.0 L139.7 220.0 L177.6 220.0 L177.6 210.0 L215.4 210.0 L215.4 200.0 L253.3 200.0 L253.3 190.0 L291.1 190.0 L291.1 180.0 L329.0 180.0 L329.0 170.0 L366.9 170.0 L366.9 160.0 L404.7 160.0 L404.7 150.0 L442.6 150.0 L594.0 150.0\" fill=\"none\" stroke=\"#1c5da6\" stroke-width=\"2.8\"\/>\n<text x=\"56\" y=\"254\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">0%<\/text>\n<text x=\"56\" y=\"154\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">5%<\/text>\n<text x=\"215.42857142857142\" y=\"200.0\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">+0.5% \/ week<\/text>\n<\/svg>\n <div class=\"fig-cap\">LD is a genuine pre-estimate of loss, recoverable from the performance\/warranty guarantee. Extension may be granted with or without a denial clause; persistent default is a breach.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-quality\">\n <span class=\"section-badge amber\">\u00a7 9.4<\/span>\n <h3>Quality assurance & inspection<\/h3>\n <\/div>\n\n <div class=\"flow amber\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Preliminary inspection<\/div><div class=\"fs-text\">Goods received on a <strong>\"subject to inspection\"<\/strong> basis; a preliminary receipt acknowledges the claimed quantity.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Detailed inspection<\/div><div class=\"fs-text\">Before acceptance, the goods are tested per the specification's inspection stages and tests; defective goods may be returned (usually within <strong>90 days<\/strong> of the original inspection report).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">GRIR<\/div><div class=\"fs-text\">A <strong>Goods Receipt & Inspection Report (Annexure 25)<\/strong> records acceptance and is the basis for payment.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-breach\">\n <span class=\"section-badge red\">\u00a7 9.8<\/span>\n <h3>Breach, remedies & termination<\/h3>\n <\/div>\n\n <p>On default the procuring entity may, without prejudice to other rights, recover LD, encash the performance security, terminate for default, or undertake a <strong>risk purchase<\/strong> \u2014 re-procuring the goods at the defaulting contractor's risk and cost. Warranty failure attracts a penalty up to <strong>5%<\/strong> of contract value over the warranty period. Termination may also be for convenience or under force majeure.<\/p>\n\n <div class=\"section-heading-block\" id=\"c9-dispute\">\n <span class=\"section-badge purple\">\u00a7 9.9–9.10<\/span>\n <h3>Dispute resolution & closure<\/h3>\n <\/div>\n\n <p>Disputes should be settled at the lowest, least adversarial level possible, escalating only if that fails:<\/p>\n <ol class=\"parts-list decimal purple\">\n <li><strong>Amicable settlement \/ Mediation<\/strong> \u2014 guided by the <strong>Mediation Act, 2023<\/strong>; the process must normally be completed within <strong>120 days<\/strong>.<\/li>\n <li><strong>Conciliation<\/strong> \u2014 under Part III of the <strong>Arbitration & Conciliation Act, 1996<\/strong>.<\/li>\n <li><strong>Arbitration<\/strong> \u2014 under the Arbitration & Conciliation Act, 1996; the arbitrator is appointed within <strong>60 days<\/strong> of a valid demand, and the seat of arbitration is the place from which the Letter of Award \/ contract was issued.<\/li>\n <li><strong>Courts<\/strong> \u2014 only where the routes above do not resolve the dispute.<\/li>\n <\/ol>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Escalating routes to resolve a dispute (9.9)<\/div>\n <svg viewBox=\"0 0 680 250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Dispute resolution escalation ladder\">\n<defs><marker id=\"es\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"46\" y=\"196\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"131.0\" y=\"224.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Amicable \/ Mediation<\/text>\n<rect x=\"192\" y=\"146\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"277.0\" y=\"174.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Conciliation<\/text>\n<rect x=\"338\" y=\"96\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"423.0\" y=\"124.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Arbitration<\/text>\n<rect x=\"484\" y=\"46\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"569.0\" y=\"74.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Courts<\/text>\n<line x1=\"34\" y1=\"222\" x2=\"34\" y2=\"38\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#es)\"\/>\n<text x=\"22\" y=\"135\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 22 135)\">more formality<\/text>\n<\/svg>\n <div class=\"fig-cap\">On closure, accounts are reconciled, final payment is made and securities released; a contract is not closed merely because the final payment was made.<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz9\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 9 Quiz \u2014 quantity, time, quality & disputes<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 9. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage9\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c9-recap\">\n <div class=\"recap-title\">⚡ Chapter 9 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Option clause size<\/td><td>Ideally <strong>\u2264 25\u201330%<\/strong>; exercised after <strong>50%<\/strong> receipt<\/td><\/tr>\n <tr><td>Delivery period<\/td><td>The <strong>\"essence of the contract\"<\/strong><\/td><\/tr>\n <tr><td>Monthly-rate tolerance<\/td><td><strong>\u00b15%<\/strong> cumulative\/year (\u00b17%\/quarter) \u2014 no LD<\/td><\/tr>\n <tr><td>Liquidated Damages<\/td><td><strong>0.5%\/week<\/strong>; max <strong>5%<\/strong> (10% if performance allowed after inordinate delay)<\/td><\/tr>\n <tr><td>Warranty-failure penalty<\/td><td>Up to <strong>5%<\/strong> of contract value<\/td><\/tr>\n <tr><td>Inspection<\/td><td>Preliminary \u2192 detailed \u2192 <strong>GRIR (Annexure 25)<\/strong>; reject within ~90 days<\/td><\/tr>\n <tr><td>Default remedy<\/td><td><strong>Risk purchase<\/strong> at the contractor's risk & cost<\/td><\/tr>\n <tr><td>Arbitration \/ Conciliation<\/td><td><strong>Arbitration & Conciliation Act, 1996<\/strong>; seat = where LoA issued<\/td><\/tr>\n <tr><td>Mediation<\/td><td><strong>Mediation Act 2023<\/strong>; complete within 120 days<\/td><\/tr>\n <tr><td>Closure<\/td><td>Not closed merely because final payment was made<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch10\" data-chapter=\"10\">\n\n <div class=\"chapter-heading-block\" id=\"c10-scrap\">\n <span class=\"chapter-badge\">CH 10 \u00b7 DISPOSAL<\/span>\n <h2>Disposal of Scrap Goods<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What counts as scrap (10.1)<\/div>\n <div class=\"def-text\">\n Goods that cannot be usefully repaired or renovated are <strong>\"scrap\"<\/strong>. Occasionally scrap includes second-hand, well-kept or even new goods that are <strong>surplus<\/strong> to the organisation's need and may fetch a fair price. Disposal is, in effect, the mirror image of procurement: the buyer becomes the seller, and the <strong>highest bidder (H1)<\/strong> wins.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-survey\">\n <span class=\"section-badge blue\">\u00a7 10.2–10.3<\/span>\n <h3>Classification & survey<\/h3>\n <\/div>\n\n <p>Items are sorted into <strong>trade groups<\/strong> (e.g. for melting, re-rolling) \u2014 segregated and sorted scrap fetches better value and helps fix reserve prices. Before anything is sold as scrap, a <strong>Survey Committee<\/strong> appointed by the Head of Office must declare it so, recording why it is surplus, obsolete or unserviceable.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">Survey Cttee<\/div><div class=\"st-cap\">Declares items scrap after inspection; SoPP lays down the competent authority<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Book value<\/div><div class=\"st-cap\">Assessed value basis; or <strong>5%<\/strong> where book value is negligible\/unavailable<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Reserve price<\/div><div class=\"st-cap\">Recorded in a <strong>sealed, page-numbered register<\/strong> before disposal; never sold below it<\/div><\/div>\n <\/div>\n\n <p>The mode of disposal is driven by value: <strong>petty sale<\/strong> to local dealers for small\/petty scrap; a <strong>limited tender<\/strong> to local scrap dealers for <strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong>; and <strong>e-Auction<\/strong> (preferred, via NIC \/ MSTC \/ Railways) for scrap <strong>above Rs 4 lakh<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Modes of disposal by scrap value (10.4)<\/div>\n <svg viewBox=\"0 0 680 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Disposal modes by scrap value\">\n<defs><marker id=\"up2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"256\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up2)\"\/>\n<text x=\"24\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 140)\">higher scrap value<\/text>\n<rect x=\"62\" y=\"30\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#7e3eb5\"\/>\n<text x=\"84\" y=\"60\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Above Rs 4 lakh<\/text>\n<text x=\"84\" y=\"82\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">e-Auction (preferred)<\/text>\n<text x=\"644\" y=\"60\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#7e3eb5\">NIC \u00b7 MSTC<\/text>\n<rect x=\"62\" y=\"110\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"110\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"140\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Rs 15k \u2013 Rs 4 lakh<\/text>\n<text x=\"84\" y=\"162\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender<\/text>\n<text x=\"644\" y=\"140\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">local dealers<\/text>\n<rect x=\"62\" y=\"190\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"190\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"220\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Small \/ petty<\/text>\n<text x=\"84\" y=\"242\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Petty sale (quotation)<\/text>\n<text x=\"644\" y=\"220\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">local dealers<\/text>\n<\/svg>\n <div class=\"fig-cap\">For transfers to other Government departments \/ fit-to-use overstocks, the rate is <strong>book value + 20% overheads + 7.5% freight<\/strong>. Security-risk scrap (stamps, negotiable instruments) needs special, safe handling.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-process\">\n <span class=\"section-badge purple\">\u00a7 10.5–10.10<\/span>\n <h3>The disposal workflow<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Survey & declare<\/div><div class=\"fs-text\">Survey Committee inspects and declares the item scrap\/surplus, recording reasons.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Segregate & price<\/div><div class=\"fs-text\">Sort into trade groups; secure valuable non-ferrous metals; fix and seal the <strong>reserve price<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Choose mode<\/div><div class=\"fs-text\">Petty sale, LTE or <strong>e-auction<\/strong> by value \u2014 e-auction preferred for higher-value scrap.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Award to H1 & deliver<\/div><div class=\"fs-text\">Sale to the highest bidder at\/above reserve price; material delivered after payment.<\/div><\/div>\n <\/div>\n\n <p>Disposal must comply with environmental law depending on the material:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Power cells<\/div><div class=\"cat-title\">Batteries Rules<\/div><p>The Batteries (Management & Handling) Rules, <strong>2001<\/strong> (as amended) govern battery scrap.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Hazardous<\/div><div class=\"cat-title\">Hazardous Waste Rules<\/div><p>The Hazardous & Other Wastes (Management & Transboundary Movement) Rules govern hazardous scrap.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Electronics<\/div><div class=\"cat-title\">e-Waste Rules<\/div><p>The e-Waste (Management) Rules, <strong>2016<\/strong> (as amended) govern electronic scrap.<\/p><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz10\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 10 Quiz \u2014 survey, modes & reserve price<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 10. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage10\"><\/div>\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore10\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext10\" disabled>Next →<\/button><\/div>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c10-recap\">\n <div class=\"recap-title\">⚡ Chapter 10 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Scrap<\/td><td>Goods not usefully repairable; may include surplus\/obsolete<\/td><\/tr>\n <tr><td>Disposal vs procurement<\/td><td>Mirror image \u2014 <strong>highest bidder (H1)<\/strong> wins<\/td><\/tr>\n <tr><td>Declaration<\/td><td>By a <strong>Survey Committee<\/strong>; reasons recorded<\/td><\/tr>\n <tr><td>Valuation basis<\/td><td>Book value, or <strong>5%<\/strong> if negligible\/unavailable<\/td><\/tr>\n <tr><td>Reserve price<\/td><td>Sealed, page-numbered register; never sold below it<\/td><\/tr>\n <tr><td>Petty sales<\/td><td>Small\/petty scrap to local dealers on quotation<\/td><\/tr>\n <tr><td>LTE mode<\/td><td><strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong> \u2014 limited tender to local dealers<\/td><\/tr>\n <tr><td>e-Auction mode<\/td><td>Above <strong>Rs 4 lakh<\/strong> \u2014 preferred; NIC \/ MSTC \/ Railways<\/td><\/tr>\n <tr><td>Inter-dept transfer rate<\/td><td>Book value + <strong>20%<\/strong> overheads + <strong>7.5%<\/strong> freight<\/td><\/tr>\n <tr><td>Compliance<\/td><td>Batteries Rules 2001 \u00b7 Hazardous Waste Rules \u00b7 e-Waste Rules 2016<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n <\/main>\n<\/div>\n<script>\n\/* \u2500\u2500\u2500\u2500\u2500 Chapter (tab) switching + sidebar navigation \u2500\u2500\u2500\u2500\u2500 *\/\n(function(){\n var details = Array.prototype.slice.call(document.querySelectorAll('details.toc-chapter'));\n var panes = Array.prototype.slice.call(document.querySelectorAll('section.chapter-pane'));\n\n function showChapter(n, scrollTop){\n panes.forEach(function(p){ p.classList.toggle('active', p.getAttribute('data-chapter') === String(n)); });\n if (scrollTop){\n var pane = document.getElementById('pane-ch'+n);\n if (pane) pane.scrollIntoView({behavior:'smooth', block:'start'});\n }\n }\n\n details.forEach(function(d){\n d.addEventListener('toggle', function(){\n if (d.open){\n details.forEach(function(o){ if (o !== d) o.open = false; });\n showChapter(d.getAttribute('data-chapter'), false);\n }\n });\n });\n\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a[href^=\"#\"]')).forEach(function(a){\n a.addEventListener('click', function(e){\n var id = a.getAttribute('href').slice(1);\n var target = document.getElementById(id);\n if (!target) return;\n e.preventDefault();\n var pane = target.closest('.chapter-pane');\n if (pane){\n var ch = pane.getAttribute('data-chapter');\n var d = document.querySelector('details.toc-chapter[data-chapter=\"'+ch+'\"]');\n if (d && !d.open) d.open = true;\n showChapter(ch, false);\n }\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a.active')).forEach(function(x){ x.classList.remove('active'); });\n a.classList.add('active');\n requestAnimationFrame(function(){ target.scrollIntoView({behavior:'smooth', block:'start'}); });\n });\n });\n})();\n\n\/* \u2500\u2500\u2500\u2500\u2500 Quiz factory \u2500\u2500\u2500\u2500\u2500 *\/\nfunction buildQuiz(stageId, scoreId, nextId, questions){\n var stage = document.getElementById(stageId);\n var scoreEl = document.getElementById(scoreId);\n var nextBtn = document.getElementById(nextId);\n if (!stage) return;\n var idx = 0, score = 0, answered = 0;\n\n function render(){\n var q = questions[idx];\n var html = '<div class=\"quiz-q\"><span class=\"q-tag\">Q'+(idx+1)+'<\/span><span>'+q.q+'<\/span><\/div><div class=\"quiz-opts\">';\n q.opts.forEach(function(opt, i){ html += '<button class=\"quiz-opt\" data-i=\"'+i+'\">'+opt+'<\/button>'; });\n html += '<\/div><div class=\"quiz-fb\"><\/div>';\n stage.innerHTML = html;\n var fb = stage.querySelector('.quiz-fb');\n var opts = Array.prototype.slice.call(stage.querySelectorAll('.quiz-opt'));\n opts.forEach(function(b){\n b.addEventListener('click', function(){\n var chosen = parseInt(b.getAttribute('data-i'), 10);\n opts.forEach(function(x){ x.classList.add('lock'); });\n opts[q.a].classList.add('correct');\n if (chosen === q.a){ score++; }\n else { b.classList.add('wrong'); }\n answered++;\n scoreEl.textContent = 'Score '+score+' \/ '+answered;\n fb.innerHTML = (chosen === q.a ? '<strong>Correct.<\/strong> ' : '<strong>Not quite.<\/strong> ') + q.fb;\n nextBtn.disabled = (idx >= questions.length - 1);\n if (idx >= questions.length - 1){ nextBtn.textContent = 'Done \\u2713'; }\n });\n });\n }\n nextBtn.addEventListener('click', function(){\n if (idx < questions.length - 1){ idx++; nextBtn.disabled = true; render(); }\n });\n render();\n}\n\nbuildQuiz('quizStage1','quizScore1','quizNext1',[\n {q:'At the apex of the statutory framework governing public procurement is \\u2014', opts:['Article 112','Article 266','Article 299','Article 280'], a:2, fb:'Article 299 of the Constitution requires that contracts binding on the Government be executed in writing by officers specifically authorised to do so.'},\n {q:'In the Central Government, the comprehensive rules for public procurement are mainly found in \\u2014', opts:['A dedicated Public Procurement Act','GFR 2017 (chapters 6 to 9) and the DFPR','The Sale of Goods Act, 1930','The Companies Act, 2013'], a:1, fb:'There is no exclusive procurement law; the rules sit in the General Financial Rules, 2017 (especially chapters 6 to 9), the DFPR and various Government orders.'},\n {q:'Procurement of common-use goods and services that are available on GeM is governed by \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 153 of GFR 2017','Rule 173 of GFR 2017'], a:1, fb:'Rule 149 of GFR 2017 makes procurement through the Government e-Marketplace (GeM) mandatory for common-use goods and services.'},\n {q:'Which of the following is NOT one of the Five R\\u2019s of Procurement?', opts:['Right Quality','Right Price','Right Source','Right Profit'], a:3, fb:'The Five R\\u2019s are Right Quality, Right Quantity, Right Price, Right Time & Place, and Right Source \\u2014 each aimed at the optimal balance, not the cheapest or most.'},\n {q:'The Standards (Canons) of Financial Propriety are set out in which rule of the GFR 2017?', opts:['Rule 21','Rule 144','Rule 149','Rule 153'], a:0, fb:'Rule 21 lays down the canons of financial propriety, including the test that an officer exercise the same vigilance over public money as a person of ordinary prudence would over their own.'},\n {q:'Under the Make-in-India (MII) Order 2017, the minimum local content to be a \\u2018Class-I local supplier\\u2019 is \\u2014', opts:['20 per cent','40 per cent','50 per cent','75 per cent'], a:2, fb:'A Class-I local supplier needs minimum 50% local content; a Class-II local supplier needs minimum 20%. The margin of purchase preference is 20%.'},\n {q:'Central Ministries\/Departments\/PSUs must procure a minimum percentage of their annual value of goods and services from Micro and Small Enterprises equal to \\u2014', opts:['10 per cent','20 per cent','25 per cent','33 per cent'], a:2, fb:'The Public Procurement Policy for MSEs sets a minimum 25% target, with sub-targets of 4% for SC\/ST-owned and 3% for women-owned MSEs.'},\n {q:'The Comptroller and Auditor General of India is established under which Articles of the Constitution?', opts:['Articles 112\\u2013114','Articles 148\\u2013151','Articles 149\\u2013151','Articles 266\\u2013267'], a:2, fb:'The CAG, the Supreme Audit Institution of India, is established under Articles 149\\u2013151 of the Constitution.'},\n {q:'A procurement valued below which threshold is exempt from the Make-in-India Order 2017?', opts:['Rs. 1 lakh','Rs. 5 lakh','Rs. 50 lakh','Rs. 1 crore'], a:1, fb:'Procurements with an estimated value below Rs. 5 lakh are exempt from the MII Order, provided procurement is not split to avoid the Order.'}\n]);\n\nbuildQuiz('quizStage2','quizScore2','quizNext2',[\n {q:'Procurement of goods should normally be initiated only on the basis of \\u2014', opts:['A market survey','An indent from the user Department','A budgetary quote','A CAG recommendation'], a:1, fb:'Procurement should be initiated only on an indent (Purchase Requisition) from the user Department, which first determines the need and anticipated quantum.'},\n {q:'Where a brand or trade name is unavoidable in describing a requirement, it should be followed by the words \\u2014', opts:['\\u201Cor better\\u201D','\\u201Cor substantially equivalent\\u201D','\\u201Cor approved equal\\u201D','\\u201Cas per sample\\u201D'], a:1, fb:'Except for proprietary single-source purchase, brand names should be avoided; where unavoidable, the description must add \\u201Cor substantially equivalent.\\u201D'},\n {q:'For obtaining budgetary quotes to estimate cost, the ideal number of quotes to be sought is \\u2014', opts:['One','Two','Three','Five'], a:2, fb:'Ideally three budgetary quotes should be obtained (within about 10\\u201321 days, with two extensions allowed); if fewer are received, the estimate is framed on the average of those received.'},\n {q:'Technical specifications should normally be based on \\u2014', opts:['International standards only','Bureau of Indian Standards (BIS) standards where they exist','The supplier\\u2019s catalogue','The cheapest available product'], a:1, fb:'Specifications should be based on recognised national standards (BIS) where they exist, with preference for BIS-marked goods; international standards apply only in their absence, with reasons recorded.'},\n {q:'The Bureau of Energy Efficiency (BEE) was established under the Energy Conservation Act, 2001, on \\u2014', opts:['1 January 2000','1 March 2002','1 April 2006','1 January 2015'], a:1, fb:'The BEE was set up on 1 March 2002; its Standards & Labelling Programme (2006) rates appliances by stars \\u2014 the higher the stars, the more efficient.'},\n {q:'Before granting administrative\/budgetary approval of an indent, it must first be certified that \\u2014', opts:['Three bids have been received','Budget funds are available and liability is noted','The CAG has been consulted','The item carries a BIS mark'], a:1, fb:'Approval of an indent requires certification that funds are available in the budget and that liability for the indent is noted against the total available budget.'},\n {q:'The Annual Procurement Plan published on GeM\/CPPP \\u2014', opts:['Initiates the procurement process','Confers a right on bidders to a tender','Does not amount to initiation of procurement','Replaces the indent'], a:2, fb:'Under Rule 144(x) of GFR 2017, publication of the Annual Procurement Plan is expressly not an initiation of procurement and casts no obligation or right regarding any tender.'},\n {q:'A procuring authority should normally neither package nor split its procurement to limit competition or avoid higher sanction, under \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 157 of GFR 2017','Rule 173 of GFR 2017'], a:2, fb:'Rule 157 of GFR 2017 bars packaging\/splitting to limit competition or avoid sanction, though division is allowed for recorded reasons such as efficiency, economy or MSE access.'},\n {q:'The stage at which cartel formation can be most effectively addressed is \\u2014', opts:['Bid opening','Contract management','Need assessment and procurement planning','Disposal of scrap'], a:2, fb:'Need assessment and procurement planning is the main stage to mitigate cartels \\u2014 by widening the supplier base and varying the mode, quantity and qualification criteria.'}\n]);\n\nbuildQuiz('quizStage3','quizScore3','quizNext3',[\n {q:'The Code of Integrity for Public Procurement is laid down in which rule of the GFR 2017?', opts:['Rule 144','Rule 150','Rule 175','Rule 161'], a:2, fb:'Rule 175 of GFR 2017 sets out the Code of Integrity, which both procuring officials and bidders\/suppliers must observe.'},\n {q:'Collusion or bid-rigging between bidders falls under which prohibited practice?', opts:['Corrupt practice','Anti-competitive practice','Coercive practice','Obstructive practice'], a:1, fb:'Collusion, bid-rigging or any arrangement under the Competition Act, 2002 is an \\u201Canti-competitive practice\\u201D \\u2014 one of the seven prohibited practices.'},\n {q:'Under the Code of Integrity, a bidder must disclose previous transgressions of the code over the last \\u2014', opts:['One year','Two years','Three years','Five years'], a:2, fb:'Bidders must declare any transgression of the code with any entity in any country during the last three years, or any debarment by another procuring entity.'},\n {q:'As guidance, the Integrity Pact threshold should cover what share of a Ministry\\u2019s annual procurement by value?', opts:['25\\u201340%','50\\u201360%','80\\u201390%','100%'], a:2, fb:'The threshold should be set so the Integrity Pact covers the bulk \\u2014 about 80 to 90 per cent by value \\u2014 of annual procurement expenditure.'},\n {q:'A bidder aggrieved by a decision of the procuring entity may seek review within \\u2014', opts:['3 days','5 days','15 days','30 days'], a:1, fb:'An affected bidder may apply for review within five days of the decision; a post-award grievance must be redressed and closed within 30 days.'},\n {q:'In the registration grading, Grade-A covers orders valued at \\u2014', opts:['Rs 1 lakh and above','Rs 5 lakh and above','Rs 25 lakh and above','Rs 50 lakh and above'], a:2, fb:'Grade-A covers orders of Rs 25 lakh and above; Grade-B Rs 5\\u201325 lakh; Grade-C Rs 1\\u20135 lakh. Registration is governed by Rule 150.'},\n {q:'A bidder convicted under the Prevention of Corruption Act may be debarred under Rule 151 for a period not exceeding \\u2014', opts:['Six months','One year','Two years','Three years'], a:3, fb:'Under Rule 151, a bidder convicted under the PC Act (or IPC for loss of life\/property in a procurement contract) may be debarred for up to three years.'},\n {q:'Debarment of a firm is best treated as \\u2014', opts:['A vigilance function','An executive function','A judicial function','An audit function'], a:1, fb:'Debarment is an executive function and should not be allocated to the Vigilance unit; it follows a reasonable opportunity to represent.'}\n]);\n\nbuildQuiz('quizStage4','quizScore4','quizNext4',[\n {q:'The mode of procurement primarily addresses which of the Five R\\u2019s?', opts:['Right Quality','Right Price','Right Source','Right Time'], a:2, fb:'The mode of procurement varies the width and specificity of the bidder catchment \\u2014 it is the \\u201CRight Source\\u201D of the Five R\\u2019s.'},\n {q:'The default mode of procurement, used for requirements above Rs 50 lakh, is \\u2014', opts:['Limited Tender Enquiry','Open Tender Enquiry','Single Tender Enquiry','Direct purchase'], a:1, fb:'Open Tender Enquiry (OTE) is the default mode (Rule 161), used above Rs 50 lakh; it seeks the widest competition and gives the best value for money.'},\n {q:'A Global Tender Enquiry shall generally NOT be invited up to a value of \\u2014', opts:['Rs 50 lakh','Rs 5 crore','Rs 50 crore','Rs 200 crore'], a:3, fb:'No GTE is invited up to Rs 200 crore (or any limit prescribed by DoE) without the approval of the competent authority designated by the Department of Expenditure.'},\n {q:'A distinctive feature of a Rate Contract \/ Framework Agreement is that \\u2014', opts:['A fixed quantity is guaranteed','No quantity is mentioned or guaranteed','It is always a single-source contract','It cannot be cancelled'], a:1, fb:'In a Rate Contract no quantity is mentioned, nor is any minimum drawable quantity guaranteed; supply orders are placed against the agreed rate during its validity.'},\n {q:'A Limited Tender Enquiry (LTE) may be used for procurements up to \\u2014', opts:['Rs 5 lakh','Rs 25 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'LTE (Rule 162) is used up to Rs 50 lakh and must be sent to more than three registered vendors; above Rs 50 lakh, a Special LTE is allowed only in exceptional circumstances.'},\n {q:'Direct procurement without quotation (petty purchase) is permitted up to \\u2014', opts:['Rs 25,000 per case','Rs 50,000 per case','Rs 1 lakh per case','Rs 5 lakh per case'], a:1, fb:'Direct purchase without quotation is allowed up to Rs 50,000 per case (Rule 154) \\u2014 enhanced to Rs 1 lakh for scientific Ministries\/Departments.'},\n {q:'Procurement by a local Purchase Committee of three members applies to values \\u2014', opts:['Up to Rs 50,000','Rs 50,000 to Rs 5 lakh','Rs 5 lakh to Rs 25 lakh','Above Rs 50 lakh'], a:1, fb:'A three-member Purchase Committee (Rule 155) handles procurements above Rs 50,000 and up to Rs 5 lakh (Rs 10 lakh for scientific bodies).'},\n {q:'On GeM, a direct purchase above Rs 50,000 and up to Rs 10 lakh must be from the lowest-priced seller among \\u2014', opts:['Any single seller','At least two manufacturers','At least three different manufacturers','At least five sellers'], a:2, fb:'Between Rs 50,000 and Rs 10 lakh, the buyer purchases from the GeM seller with the lowest price among at least three different manufacturers; above Rs 10 lakh, bidding or reverse auction is used.'}\n]);\n\n\nbuildQuiz('quizStage5','quizScore5','quizNext5',[\n {q:'The contents of a tender document are governed by which rule of the GFR 2017?', opts:['Rule 161','Rule 165','Rule 168','Rule 173'], a:2, fb:'Rule 168 lays down the contents of the tender document \\u2014 the eight ordered sections from the NIT to the Qualification & Evaluation Criteria.'},\n {q:'In a tender document, conditions that apply only after the announcement of the award are placed in the \\u2014', opts:['Instructions to Bidders (ITB)','General Conditions of Contract (GCC)','Notice Inviting Tender (NIT)','Schedule of Requirements'], a:1, fb:'The GCC covers everything from the announcement of award to contract closure; the ITB covers everything up to the award.'},\n {q:'The three successive filters applied to bidders, in order, are \\u2014', opts:['Evaluation \\u2192 Eligibility \\u2192 Qualification','Eligibility \\u2192 Qualification \\u2192 Evaluation','Qualification \\u2192 Eligibility \\u2192 Evaluation','Eligibility \\u2192 Evaluation \\u2192 Qualification'], a:1, fb:'Eligibility decides who may participate, qualification tests capability to perform, and evaluation selects the most advantageous bid.'},\n {q:'If the tender document does not specify a bid-validity period, the default is \\u2014', opts:['30 days','45 days','60 days','90 days'], a:3, fb:'A bid remains valid for 90 days if no period is specified; a bid valid for a shorter period than required is rejected as non-responsive.'},\n {q:'The minimum time normally allowed to bidders rises to four weeks when \\u2014', opts:['The value exceeds Rs 50 lakh','International participation is contemplated','The mode is a limited tender','An Integrity Pact applies'], a:1, fb:'At least three weeks are normally allowed, rising to not less than four weeks where international participation is contemplated.'},\n {q:'A bid that quotes NIL charges\/consideration shall be \\u2014', opts:['Treated as the lowest bid','Treated as unresponsive','Accepted with a clarification','Referred to the Tender Committee'], a:1, fb:'The tender document must provide that a NIL quote is treated as unresponsive and not considered.'},\n {q:'Late bids received after the deadline for receipt of bids are governed by which rule, under which they are not considered?', opts:['Rule 161','Rule 165','Rule 170','Rule 173'], a:1, fb:'Under Rule 165, bids received after the specified deadline are not considered; the Bid Opening Committee has no authority to reject a bid at the opening stage.'},\n {q:'A pre-bid conference is most appropriate for \\u2014', opts:['All petty purchases','Routine off-the-shelf goods','Turnkey or sophisticated, costly equipment','Rate contracts'], a:2, fb:'Pre-bid conferences are provided mainly for turnkey contracts and sophisticated, costly equipment, to clarify the tender before bids are submitted.'}\n]);\n\nbuildQuiz('quizStage6','quizScore6','quizNext6',[\n {q:'Bid Security (EMD) should ordinarily range between \\u2014', opts:['1% and 2% of estimated value','2% and 5% of estimated value','5% and 10% of estimated value','3% and 10% of estimated value'], a:1, fb:'Under Rule 170, Bid Security ordinarily ranges between 2% and 5% of the estimated value of the goods, rounded to the nearest thousand.'},\n {q:'Which bidders are exempt from payment of EMD?', opts:['All registered bidders','MSEs and DPIIT-recognised start-ups','Only CPSEs','Foreign bidders in GTE'], a:1, fb:'Micro & Small Enterprises and DPIIT-recognised start-ups are exempt from EMD; in place of bid security, a Bid Securing Declaration may also be permitted.'},\n {q:'Performance Security for a goods contract is normally \\u2014', opts:['1\\u20132% of contract value','2\\u20135% of contract value','3\\u20135% of contract value','10\\u201315% of contract value'], a:2, fb:'Performance Security is 3\\u20135% of contract value for goods (3\\u201310% for Works), under Rule 171.'},\n {q:'Submission of Performance Security is not necessary for a tender value up to \\u2014', opts:['Rs 5 lakh','Rs 10 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'Performance Security is not necessary for a tender value up to Rs 50 lakh; it is otherwise valid for 60 days beyond all contractual obligations.'},\n {q:'An Insurance Surety Bond is distinctive because it \\u2014', opts:['Requires full collateral with the surety','Is a premium-based product needing no collateral','Is issued only by the RBI','Is valid only abroad'], a:1, fb:'Unlike a bank guarantee, an Insurance Surety Bond is a premium-based, three-party product that does not require the principal to deposit collateral.'},\n {q:'The quantum of advance payment to a State\/Central Government agency or PSE should generally not exceed \\u2014', opts:['15%','30%','40%','50%'], a:2, fb:'Advance to a State\/Central Government agency or PSE should not generally exceed 40% of the contract value, secured by a bank guarantee of at least 110% of the advance.'},\n {q:'A contract with deliveries longer than 12 months should normally carry a \\u2014', opts:['Firm and fixed price','Price Variation Clause','NIL price','Single source price'], a:1, fb:'Deliveries up to 12 months are normally on a firm and fixed price; deliveries longer than 12 months use a Price Variation Clause with a base date, time-lag and ceiling.'},\n {q:'An electronic Bank Guarantee (e-BG) is processed on the portal of \\u2014', opts:['GeM','CPPP','NeSL','RBI'], a:2, fb:'An e-BG is a dematerialised bank guarantee processed on the NeSL portal; verification with NeSL is sufficient, without verifying with the issuing bank.'}\n]);\n\nbuildQuiz('quizStage7','quizScore7','quizNext7',[\n {q:'For procurements with financial implications above Rs 50 lakh, evaluation is normally done by a Tender Committee of \\u2014', opts:['One member','Two members','Three members','Five members'], a:2, fb:'A Tender Committee above Rs 50 lakh normally comprises three members, including a finance member nominated by the FA and a user representative.'},\n {q:'Rule 173(xxii) of GFR 2017 requires that, above Rs 50 lakh, no Tender Committee member \\u2014', opts:['Is from the finance wing','Reports directly to another member','Is a technical expert','Attends the bid opening'], a:1, fb:'Rule 173(xxii) bars a member who reports directly to another member, to preserve independence; the recommending authority must also not be the accepting authority.'},\n {q:'Where unit price \\u00d7 quantity does not equal the stated total, which prevails?', opts:['The total price','The unit price','The higher of the two','The bidder is asked to choose'], a:1, fb:'The unit price prevails and the total is corrected; sub-totals prevail over a mis-added grand total; and words prevail over figures.'},\n {q:'Between an amount written in words and the same amount in figures, the binding amount is \\u2014', opts:['The figures','The words','The lower amount','The higher amount'], a:1, fb:'The amount in words prevails over the amount in figures; likewise the original copy prevails over a scanned copy.'},\n {q:'A deviation that affects the scope, quality or performance of the product is \\u2014', opts:['A minor deviation that may be condoned','A substantive deviation leading to rejection','Always ignored','Only relevant in Works'], a:1, fb:'Such a deviation is substantive and the bid is rejected as non-responsive; minor deviations with no fiscal or ranking impact may be condoned after clarification.'},\n {q:'The reasonableness of the recommended price is judged mainly against the \\u2014', opts:['Highest bid received','Last Purchase Price','Bidder\\u2019s catalogue','Budget estimate alone'], a:1, fb:'Reasonableness is judged mainly against the Last Purchase Price, updated for quantity, delivery and terms, triangulating more than one method of estimation.'},\n {q:'When a parallel contract splits the quantity between two suppliers, the typical ratio is \\u2014', opts:['50:50','60:40','70:30','80:20'], a:2, fb:'A split between two suppliers is typically in the ratio 70:30, with L1 awarded at least the prescribed share.'},\n {q:'Price negotiation after bid opening, where unavoidable, must be conducted \\u2014', opts:['With all bidders','Only with L1','With L1 and L2','With the lowest three bidders'], a:1, fb:'Under Rule 173(xiv), negotiation is severely discouraged and, where unavoidable, is conducted only with L1 \\u2014 never extended to other bidders, even if cartel rates are suspected.'}\n]);\n\n\nbuildQuiz('quizStage8','quizScore8','quizNext8',[\n {q:'Among the fast-track modes for an operational emergency, the fastest suggested route is \\u2014', opts:['Open Tender Enquiry','Procurement through the GeM portal','Global Tender Enquiry','Two-stage bidding'], a:1, fb:'Procurement through GeM is the fastest suggested route, followed by direct purchase, purchase committee, and SLTE\/LTE\/STE with reduced bid time.'},\n {q:'In a declared crisis, the minimum time for bid submission may be shortened to about \\u2014', opts:['1\\u20133 days','1\\u20132 weeks','three weeks','four weeks'], a:0, fb:'Crisis dispensations allow timelines as short as 1\\u20133 days, and bids may even be received by phone, email or in person.'},\n {q:'During an emergency, which documents normally do NOT apply?', opts:['The GFR itself','Model Tender Documents and standard GCC','The SoPP','The Constitution'], a:1, fb:'Model Tender Documents and the standard General Conditions of Contract do not apply to emergency procurement; norms like EMD, SD and LD may also be relaxed.'},\n {q:'A buy-back offer, where an old item is traded in while buying a new one, is provided for in \\u2014', opts:['Rule 144','Rule 169','Rule 176','Rule 154'], a:2, fb:'Under Rule 176, the bidder is asked to quote both with a rebate for the old item and without it, giving the department the option to trade or not.'},\n {q:'Acquisition of capital goods differs from consumables mainly because it \\u2014', opts:['Needs no budget','Is an investment decision against an item-specific budget','Is always single-source','Is exempt from inspection'], a:1, fb:'Capital goods are procured against an item-specific budgetary provision and are treated as an investment decision, often judged on Total Cost of Ownership.'},\n {q:'An Annual Maintenance Contract (Rule 169) should begin \\u2014', opts:['On the date of order','Before delivery','After the warranty period expires','Only at contract closure'], a:2, fb:'The AMC starts after the warranty period, during which the supplier maintains the goods free of cost; it may be with the OEM or another competent firm.'},\n {q:'In the NPV example used for evaluating capital-goods offers, the discount rate is taken as \\u2014', opts:['5%','7%','10%','12%'], a:1, fb:'The illustrative discount rate is 7%; the NPV is computed conveniently using the NPV function in Excel.'},\n {q:'In the procurement of books and print media, the L1 (best) offer is the one with the \\u2014', opts:['Lowest list price','Highest discount on published price','Fastest delivery','Largest catalogue'], a:1, fb:'Offers are solicited as a net discount over the published price, and the vendor offering the most competitive discount is treated as L1.'}\n]);\n\nbuildQuiz('quizStage9','quizScore9','quizNext9',[\n {q:'A plus\/minus option clause for varying quantity should ideally not exceed \\u2014', opts:['5\\u201310%','15\\u201320%','25\\u201330%','40\\u201350%'], a:2, fb:'The option clause should ideally not exceed 25\\u201330% of the original quantity and is normally exercised after receipt of 50% of the quantity, with CA approval.'},\n {q:'In contract law terms, the delivery period stipulated in a contract is treated as \\u2014', opts:['A guideline only','The essence of the contract','Negotiable at any time','Irrelevant to LD'], a:1, fb:'The delivery period is the \"essence of the contract\"; vague terms like \"immediately\" are avoided as they are not legally binding.'},\n {q:'Liquidated Damages for delayed delivery typically accrue at \\u2014', opts:['0.1% per week','0.5% per week','2% per week','5% per week'], a:1, fb:'LD is typically 0.5% (half per cent) of contract value per week of delay, recoverable from the performance\/warranty guarantee.'},\n {q:'The normal maximum on Liquidated Damages is \\u2014', opts:['2% of contract value','5% of contract value','10% of contract value','25% of contract value'], a:1, fb:'The normal cap on LD is 5% of contract value, rising to a maximum of 10% only where performance is allowed after inordinate delays.'},\n {q:'The basis for payment, prepared after inspection and acceptance of the goods, is the \\u2014', opts:['Letter of Award','Goods Receipt & Inspection Report (GRIR)','Comparative statement','Bid opening report'], a:1, fb:'The GRIR (Annexure 25) is prepared after inspection and acceptance and is the basis for receiving and paying for the material.'},\n {q:'When a contractor defaults, re-procuring the goods at the defaulter\\u2019s risk and cost is known as \\u2014', opts:['Risk purchase','Force majeure','Novation','Rate contract'], a:0, fb:'A risk purchase re-procures the goods at the defaulting contractor\\u2019s risk and cost \\u2014 one of the remedies for breach, alongside LD and encashment of performance security.'},\n {q:'Arbitration and conciliation of contract disputes are governed by the \\u2014', opts:['Contract Act, 1872','Arbitration and Conciliation Act, 1996','Sale of Goods Act, 1930','Competition Act, 2002'], a:1, fb:'The Arbitration and Conciliation Act, 1996 governs arbitration and conciliation; the seat of arbitration is the place from which the Letter of Award or contract is issued.'},\n {q:'Mediation of disputes is governed by the Mediation Act 2023 and must normally be completed within \\u2014', opts:['30 days','60 days','120 days','one year'], a:2, fb:'Mediation under the Mediation Act, 2023 must normally be completed within 120 days; if the dispute survives, parties may escalate.'}\n]);\n\nbuildQuiz('quizStage10','quizScore10','quizNext10',[\n {q:'In disposal, which bidder is selected \\u2014 the mirror image of procurement?', opts:['L1 (lowest)','H1 (highest)','The first bidder','Any registered dealer'], a:1, fb:'Disposal is the reverse of procurement: the highest bidder (H1) wins, and material is never sold below the reserve price.'},\n {q:'Before an item of stores can be sold as scrap, it must first be declared so by the \\u2014', opts:['Tender Committee','Survey Committee','Bid Opening Committee','Reserve Price Committee'], a:1, fb:'A Survey Committee appointed by the Head of Office inspects and declares the item scrap\/surplus\/obsolete, recording the reasons.'},\n {q:'Where an item\\u2019s book value is negligible or unavailable, its assessed value may be taken as \\u2014', opts:['1% of original cost','5% of original cost','10% of original cost','Nil'], a:1, fb:'The assessed value is based on book value, or 5% where the book value is negligible or unavailable.'},\n {q:'Scrap valued between Rs 15,000 and Rs 4 lakh is normally disposed of by \\u2014', opts:['Petty sale','Limited Tender to local scrap dealers','e-Auction only','Negotiation'], a:1, fb:'Scrap above Rs 15,000 and up to Rs 4 lakh is sold on a limited-tender basis to locally known scrap dealers in the relevant category.'},\n {q:'For scrap valued above Rs 4 lakh, the preferred mode of disposal is \\u2014', opts:['Petty sale','Limited Tender','e-Auction (NIC \/ MSTC \/ Railways)','Direct sale'], a:2, fb:'Above Rs 4 lakh, e-Auction is the preferred mode \\u2014 using platforms such as NIC, MSTC or Indian Railways \\u2014 though a disposal tender or public auction may also be used.'},\n {q:'The reserve price for a disposal lot must be \\u2014', opts:['Published in the NIT','Recorded in a sealed, page-numbered register before disposal','Set after bids are opened','Equal to the book value'], a:1, fb:'The reserve price is recorded on a page-numbered register and sealed before the disposal date; material is never sold below it.'},\n {q:'When fit-to-use surplus is transferred to another Government department, the rate is book value plus \\u2014', opts:['10% overheads + 5% freight','20% overheads + 7.5% freight','25% overheads + 10% freight','no addition'], a:1, fb:'Such transfers are priced at book value plus 20% overheads plus 7.5% freight.'},\n {q:'Disposal of electronic scrap must comply with the \\u2014', opts:['Batteries Rules 2001','e-Waste (Management) Rules, 2016','Sale of Goods Act, 1930','URDG 758'], a:1, fb:'Electronic scrap is governed by the e-Waste (Management) Rules, 2016; battery scrap by the Batteries Rules 2001, and hazardous scrap by the Hazardous Wastes Rules.'}\n]);\n\n<\/script>\n\n<\/body>\n<\/html>\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n<title>Manual for Procurement of Goods (2024) \u2014 Interactive Study Notes<\/title>\n<style>\n.elementor-section.elementor-section-stretched,\n .elementor-section-full_width,\n .elementor-container,\n .elementor-column,\n .elementor-column-wrap,\n .elementor-widget-wrap,\n .elementor-element {\n padding: 0 !important;\n margin: 0 !important;\n gap: 0 !important;\n }\n\n *, *::before, *::after { box-sizing: border-box; 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font-weight:700; line-height:1.18; margin-bottom:14px; color:#fff; text-shadow:0 2px 8px rgba(0,0,0,0.20); }\n .hero-sub { font-size:15px; opacity:0.93; margin-bottom:24px; max-width:740px; color:#fff; }\n .hero-pills { display:flex; flex-wrap:wrap; gap:8px; }\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); }\n\n .scope-banner { background:#fff7ec; border-bottom:1px solid #f0dcb8; padding:10px 48px; }\n .scope-inner { max-width:1120px; margin:0 auto; font-size:13px; color:#8a5a10; display:flex; align-items:center; gap:8px; }\n .scope-inner strong { color:#6b4408; }\n\n .breadcrumb-bar { background:#fff; border-bottom:1px solid var(--border); padding:10px 48px; }\n .breadcrumb-inner { max-width:1120px; margin:0 auto; font-size:12.5px; color:#aaa; display:flex; align-items:center; gap:6px; }\n .breadcrumb-inner a { color:var(--blue); }\n .breadcrumb-inner a:hover { text-decoration:underline; }\n .breadcrumb-inner .sep { color:#ddd; }\n\n .layout { max-width:1120px; margin:0 auto; padding:44px 48px 88px; display:grid; grid-template-columns:264px 1fr; gap:56px; align-items:start; }\n\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); }\n .chapter-heading-block:first-child { margin-top:0; }\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; }\n .chapter-heading-block h2 { font-family:'Crimson Pro',Georgia,serif; font-size:23px; font-weight:700; color:var(--navy); margin:0; }\n\n .section-heading-block { display:flex; align-items:center; gap:12px; margin:38px 0 14px; }\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; }\n .section-badge.amber{background:var(--amber);} .section-badge.teal{background:var(--teal);}\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);}\n .section-heading-block h3 { font-size:17px; font-weight:700; color:var(--navy); margin:0; }\n\n .article h4 { font-size:14.5px; font-weight:700; color:var(--navy); margin:22px 0 10px; }\n .article p { color:#2c3e50; margin-bottom:12px; text-align:justify; hyphens:auto; }\n .article strong { color:#111; }\n .layout > .article, .layout > .sidebar { min-width:0; }\n .table-wrap { max-width:100%; }\n\n .icon-list { list-style:none; margin:0 0 14px; display:flex; flex-direction:column; gap:8px; }\n .icon-list li { display:flex; align-items:flex-start; gap:10px; font-size:15px; color:#2c3e50; line-height:1.78; text-align:justify; }\n .icon-list li .ico { font-size:15px; flex-shrink:0; margin-top:4px; width:20px; text-align:center; }\n\n .callout { position:relative; padding:15px 18px 16px; margin:18px 0 22px; background:#f6faff;\n border:1px solid #e3edf8; border-left:3px solid var(--blue); border-radius:4px 9px 9px 4px;\n transition:box-shadow .18s ease, transform .18s ease; }\n .callout:hover { box-shadow:0 6px 20px -12px rgba(20,40,80,.35); }\n .callout > p { text-align:justify; }\n .callout > p:last-child { margin-bottom:0; }\n\n .callout-label { display:flex; align-items:center; gap:9px; margin-bottom:11px;\n font-family:'DM Sans',sans-serif; font-size:10.5px; font-weight:700;\n text-transform:uppercase; letter-spacing:0.11em; color:var(--blue); }\n .callout-label::before { content:'\\25C6'; flex:none; width:23px; height:23px; border-radius:6px;\n display:inline-grid; place-items:center; background:var(--blue); color:#fff;\n font-family:'JetBrains Mono',monospace; font-size:12px; line-height:1;\n box-shadow:0 1px 0 rgba(0,0,0,.12) inset, 0 2px 5px -2px rgba(0,0,0,.4); }\n\n .callout.blue { background:#f6faff; border-left-color:var(--blue); }\n .callout.teal { background:#f3fdf9; border-color:#cdeee0; border-left:3px dotted var(--teal); }\n .callout.teal .callout-label { color:var(--teal); } .callout.teal .callout-label::before{ content:'\\22A1'; background:var(--teal); }\n .callout.amber { background:#fffbf3; border-color:#f3e3c3; border-left-color:var(--amber); }\n .callout.amber .callout-label { color:#9a6a00; } .callout.amber .callout-label::before{ content:'\\0021'; background:var(--amber); }\n .callout.purple { background:#faf6ff; border-color:#e7dcf6; border-left-color:var(--purple); }\n .callout.purple .callout-label { color:var(--purple); } .callout.purple .callout-label::before{ content:'\\2756'; background:var(--purple); }\n .callout.slate { background:#f6f8fb; border:1px solid #dde5ee; border-left-width:1px; }\n .callout.slate .callout-label { color:var(--slate); } .callout.slate .callout-label::before{ content:'\\25B8'; background:var(--slate); }\n\n .callout.gold { background:#fffdf3; border:1.5px solid #e7cf8e; border-left-width:1.5px; border-radius:9px; }\n .callout.gold .callout-label { color:#8a6a00; } .callout.gold .callout-label::before{ content:'\\00A7'; background:var(--gold); color:#3a2c00; }\n .callout.gold::before, .callout.gold::after { content:''; position:absolute; width:9px; height:9px; border:1.5px solid var(--gold); }\n .callout.gold::before { top:6px; left:6px; border-right:0; border-bottom:0; }\n .callout.gold::after { bottom:6px; right:6px; border-left:0; border-top:0; }\n\n .callout.red { background:#fff7f6; border-color:#f3cfca; border-left:4px solid var(--red); overflow:hidden; }\n .callout.red .callout-label { color:var(--red); margin:-15px -18px 12px; padding:11px 18px;\n background:linear-gradient(90deg,#fdecea,#fff7f6); border-bottom:1px solid #f3cfca; }\n .callout.red .callout-label::before{ content:'\\2691'; background:var(--red); }\n\n .callout.purple { overflow:hidden; }\n .callout.purple::after { content:''; position:absolute; top:0; right:0; border-width:0 16px 16px 0;\n border-style:solid; border-color:#fff #fff var(--purple) var(--purple); opacity:.55; }\n\n @media (prefers-reduced-motion: reduce){ .callout{ transition:none; } }\n\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; }\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; }\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; }\n .def-card .def-text { font-size:15px; color:#1f3a55; line-height:1.78; position:relative; z-index:1; text-align:justify; }\n\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; }\n .compare-intro { margin:20px 0 -2px; font-size:14.5px; color:#42526b; }\n .table-wrap { overflow-x:auto; -webkit-overflow-scrolling:touch; margin:16px 0 24px; }\n .table-wrap > .compare-table { margin:0; }\n .compare-table thead tr { background:var(--navy); color:#fff; }\n .compare-table th { padding:12px 16px; text-align:left; font-size:12.5px; font-weight:700; }\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; text-align:justify; text-justify:inter-word; hyphens:none; }\n .compare-table tr:nth-child(even) td { background:#f8fbfd; }\n .compare-table td.label-cell { font-weight:700; color:var(--navy); background:#eef4fa !important; text-align:left; }\n .compare-table td.code-cell { font-family:'JetBrains Mono',monospace; font-weight:700; color:var(--blue); background:#eef4fa !important; text-align:center; }\n\n .info-row { display:grid; grid-template-columns:repeat(auto-fit,minmax(150px,1fr)); gap:14px; margin:18px 0 26px; }\n .info-card { background:#fff; border:1.5px solid var(--border); border-top:4px solid var(--blue); border-radius:12px; padding:18px 16px; }\n .info-card.t-teal { border-top-color:var(--teal); }\n .info-card.t-amber { border-top-color:var(--amber); }\n .info-card.t-gold { border-top-color:var(--gold); }\n .info-card.t-red { border-top-color:var(--red); }\n .info-card.t-purple { border-top-color:var(--purple); }\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; }\n .info-card .ic-cap { font-size:12.5px; color:#5a6b7d; line-height:1.5; }\n\n .parts-list { list-style:none; counter-reset:parts; margin:14px 0 22px; display:flex; flex-direction:column; gap:12px; }\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; }\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; }\n .parts-list.roman > li::before { content:counter(parts,lower-roman); font-size:12px; }\n .parts-list.decimal > li::before { content:counter(parts); font-size:13px; }\n .parts-list.teal > li::before{background:var(--teal);} .parts-list.amber > li::before{background:var(--amber);} .parts-list.blue > li::before{background:var(--blue);}\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);}\n .parts-list > li strong { color:var(--navy); }\n\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; }\n .highlight-box .hl-label { font-size:10px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--blue); margin-bottom:6px; }\n .highlight-box .hl-text { font-size:14.5px; color:#2c3e50; line-height:1.72; text-align:justify; }\n\n .flow { display:flex; flex-wrap:wrap; gap:0; margin:20px 0 28px; align-items:stretch; }\n .flow-step { flex:1 1 0; min-width:140px; background:#fff; border:1.5px solid var(--border); border-radius:12px; padding:14px 15px; position:relative; }\n .flow-step + .flow-step { margin-left:28px; }\n .flow-step + .flow-step::before { content:'\\2192'; position:absolute; left:-23px; top:50%; transform:translateY(-50%); color:var(--sky); font-size:19px; font-weight:700; }\n .flow-step .fs-num { font-family:'JetBrains Mono',monospace; font-size:10.5px; font-weight:700; color:var(--blue); letter-spacing:0.08em; margin-bottom:6px; }\n .flow-step .fs-title { font-size:13px; font-weight:700; color:var(--navy); margin-bottom:4px; line-height:1.3; }\n .flow-step .fs-text { font-size:12px; color:#5a6b7d; line-height:1.55; }\n .flow.teal .flow-step+.flow-step::before{color:var(--teal);} .flow.teal .fs-num{color:var(--teal);}\n .flow.amber .flow-step+.flow-step::before{color:var(--amber);} .flow.amber .fs-num{color:#9a6a00;}\n .flow.purple .flow-step+.flow-step::before{color:var(--purple);} .flow.purple .fs-num{color:var(--purple);}\n @media (max-width:720px){ .flow{flex-direction:column;} .flow-step+.flow-step{margin-left:0;margin-top:28px;} .flow-step+.flow-step::before{content:'\\2193';left:50%;top:-24px;transform:translateX(-50%);} }\n\n .cat-grid { display:grid; grid-template-columns:repeat(2,1fr); gap:14px; margin:20px 0 28px; }\n .cat-grid.three{grid-template-columns:repeat(3,1fr);} .cat-grid.four{grid-template-columns:repeat(4,1fr);}\n .cat-card { border-radius:10px; padding:18px 18px; border:1.5px solid var(--border); }\n .cat-card.a{border-color:#9dc3ec;background:#f0f7ff;} .cat-card.b{border-color:#7fd3c5;background:#f0fdf8;}\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;}\n .cat-label { font-size:9.5px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:6px; }\n .cat-title { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:8px; }\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);}\n .cat-card p { font-size:13px; color:#2c3e50; line-height:1.7; text-align:justify; }\n .cat-badge { display:inline-block; font-size:22px; font-weight:900; margin-bottom:6px; font-family:'JetBrains Mono',monospace; line-height:1; }\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);}\n\n .chapter-pane { display:none; animation:fadeIn 0.3s ease; }\n .chapter-pane.active { display:block; }\n @keyframes fadeIn { from{opacity:0;transform:translateY(4px);} to{opacity:1;transform:translateY(0);} }\n\n .sidebar { position:sticky; top:24px; max-height:calc(100vh - 48px); }\n .toc-card { background:#fff; border:1px solid var(--border); border-radius:12px; padding:16px 12px; max-height:calc(100vh - 48px); overflow-y:auto; }\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; }\n .toc-chapter { margin-bottom:8px; }\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; }\n .toc-chapter-header::-webkit-details-marker { display:none; }\n .toc-chapter-header:hover { background:#163457; }\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; }\n .toc-ch-title { flex:1; font-size:13.5px; font-weight:700; line-height:1.25; color:#fff; }\n .toc-ch-chev { font-size:10px; color:rgba(255,255,255,0.8); transition:transform 0.22s ease; flex-shrink:0; }\n .toc-chapter[open] > .toc-chapter-header { background:#163457; }\n .toc-chapter[open] > .toc-chapter-header .toc-ch-chev { transform:rotate(90deg); }\n .toc-sub-wrap { position:relative; margin:6px 0 6px 18px; padding-left:14px; }\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); }\n .toc-sub-list { list-style:none; }\n .toc-sub-list li { display:flex; align-items:flex-start; gap:6px; padding:5px 4px 5px 0; }\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; }\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; }\n .toc-sub-list a:hover { color:var(--blue); }\n .toc-sub-list a.active { color:var(--blue); font-weight:700; }\n .toc-sub-list .toc-app .toc-sub-num, .toc-sub-list .toc-app a { color:var(--purple); }\n .toc-sub-list .toc-app a:hover, .toc-sub-list .toc-app a.active { color:#5a2a8a; font-weight:700; }\n .toc-upcoming { margin-top:10px; padding:10px 12px; border:1px dashed #cdd8e4; border-radius:10px; }\n .toc-upcoming .tu-label { font-size:9px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:7px; }\n .toc-upcoming ul { list-style:none; display:flex; flex-direction:column; gap:5px; }\n .toc-upcoming li { font-size:11.5px; color:#9aa9b8; display:flex; gap:7px; align-items:baseline; line-height:1.35; }\n .toc-upcoming li .tu-num { font-family:'JetBrains Mono',monospace; font-weight:700; color:#b7c2cf; min-width:34px; }\n\n .recap { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); border-radius:14px; padding:28px 30px; margin:44px 0 0; color:#fff; }\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; }\n .recap table { width:100%; border-collapse:collapse; }\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; }\n .recap td { text-align:justify; text-justify:inter-word; hyphens:none; }\n .recap th, .recap td:first-child { text-align:left; }\n .recap th { font-size:11px; text-transform:uppercase; letter-spacing:0.1em; opacity:0.7; font-weight:700; }\n .recap td:first-child { font-weight:700; color:#ffd700; width:38%; }\n .recap td strong { color:#ffd95a; font-weight:700; }\n .recap td:first-child strong { color:inherit; }\n\n .ix { border:1.5px solid var(--border); border-radius:14px; margin:30px 0 28px; overflow:hidden; background:#fff; }\n .ix-head { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); color:#fff; padding:14px 20px; display:flex; align-items:center; gap:12px; }\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; }\n .ix-head h4 { font-size:14px; font-weight:700; color:#fff; margin:0; }\n .ix-body { padding:20px; }\n .ix-help { font-size:12.5px; color:var(--muted); margin:0 0 14px; }\n .quiz-q { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:14px; display:flex; gap:8px; align-items:baseline; }\n .quiz-q .q-tag { font-family:'JetBrains Mono',monospace; font-size:24px; font-weight:700; color:var(--blue); flex-shrink:0; }\n .quiz-opts { display:grid; grid-template-columns:repeat(2,1fr); gap:10px; margin-bottom:6px; }\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; }\n .quiz-opt:hover { border-color:var(--blue); 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} }\n\n \/* \u2500\u2500\u2500\u2500\u2500 Tag legend chips \u2500\u2500\u2500\u2500\u2500 *\/\n .chip-row { display:flex; flex-wrap:wrap; gap:8px; margin:8px 0 20px; }\n .chip { font-size:11.5px; font-weight:600; padding:6px 12px; border-radius:20px; background:#eef4fa; color:var(--navy); border:1px solid #d6e3f0; }\n .chip b { font-family:'JetBrains Mono',monospace; color:var(--blue); }\n\n @media (max-width:880px) {\n .layout { grid-template-columns:1fr; gap:32px; padding:28px 24px 64px; }\n .sidebar { position:static; }\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr 1fr; }\n .hero { padding:48px 24px 44px; }\n .breadcrumb-bar, .scope-banner { padding:10px 24px; }\n .hero-grid { grid-template-columns:1fr; gap:24px; }\n .hero-illustration { width:250px; margin:0 auto; }\n }\n @media (max-width:640px) {\n .compare-table.wide { min-width:560px; }\n .table-wrap { border:1px solid var(--border); border-radius:10px;\n background:linear-gradient(90deg,#fff 30%,rgba(255,255,255,0)),\n linear-gradient(90deg,rgba(255,255,255,0),#fff 70%) 100% 0,\n radial-gradient(farthest-side at 0 50%,rgba(16,36,63,.14),transparent),\n radial-gradient(farthest-side at 100% 50%,rgba(16,36,63,.14),transparent) 100% 0;\n background-repeat:no-repeat; 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This revised <strong>Second Edition (2024)<\/strong> incorporates clarifications up to June 2024, the MAPS 2020 review and refreshed Model Tender Documents. These notes open with the <strong>Principles & Policies<\/strong> and the <strong>Need-Assessment \/ Specification \/ Planning<\/strong> stage.<\/p>\n <div class=\"hero-pills\">\n <span class=\"hero-pill\">GFR 2017 \u00b7 Rules 144\u2013173<\/span>\n <span class=\"hero-pill\">Five R's of Procurement<\/span>\n <span class=\"hero-pill\">Make-in-India \u00b7 MSE \u00b7 MII<\/span>\n <span class=\"hero-pill\">GeM \u00b7 CPPP<\/span>\n <\/div>\n <\/div>\n <div class=\"hero-illustration\" aria-hidden=\"true\">\n <svg viewBox=\"0 0 340 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"A goods crate with a quality seal beside a tender document and a gavel\">\n <ellipse cx=\"170\" cy=\"262\" rx=\"132\" ry=\"12\" fill=\"rgba(0,0,0,0.18)\"\/>\n \n <g transform=\"rotate(-7 96 120)\">\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"120\" rx=\"6\" fill=\"#f4f8fd\" stroke=\"#0a2238\" stroke-width=\"2\"\/>\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"22\" rx=\"6\" fill=\"#1c5da6\"\/>\n <g stroke=\"#9db8d4\" stroke-width=\"3\" stroke-linecap=\"round\">\n <line x1=\"70\" y1=\"96\" x2=\"138\" y2=\"96\"\/>\n <line x1=\"70\" y1=\"110\" x2=\"138\" y2=\"110\"\/>\n <line x1=\"70\" y1=\"124\" x2=\"120\" y2=\"124\"\/>\n <line x1=\"70\" y1=\"138\" x2=\"138\" y2=\"138\"\/>\n <line x1=\"70\" y1=\"152\" x2=\"112\" y2=\"152\"\/>\n <\/g>\n <\/g>\n \n <rect x=\"118\" y=\"146\" width=\"116\" height=\"86\" rx=\"8\" fill=\"#c97c10\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M118 174 H234\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M176 146 V232\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n \n <rect x=\"160\" y=\"146\" width=\"32\" height=\"86\" fill=\"#e0a040\" opacity=\"0.55\"\/>\n \n <circle cx=\"176\" cy=\"138\" r=\"22\" fill=\"#0e8f7a\" stroke=\"#0a6354\" stroke-width=\"3\"\/>\n <path d=\"M165 138 l7 8 14 -17\" fill=\"none\" stroke=\"#fff\" stroke-width=\"4\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n \n <g transform=\"rotate(18 246 168)\">\n <rect x=\"222\" y=\"150\" width=\"48\" height=\"34\" rx=\"6\" fill=\"#fffaf0\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <circle cx=\"228\" cy=\"167\" r=\"4\" fill=\"none\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <text x=\"250\" y=\"176\" font-family=\"Georgia,serif\" font-size=\"20\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#10243f\">₹<\/text>\n <\/g>\n \n <g transform=\"rotate(38 256 96)\">\n <rect x=\"246\" y=\"58\" width=\"14\" height=\"48\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <rect x=\"236\" y=\"44\" width=\"34\" height=\"22\" rx=\"5\" fill=\"#1c5da6\" stroke=\"#13456f\" stroke-width=\"2\"\/>\n <\/g>\n <rect x=\"232\" y=\"118\" width=\"46\" height=\"9\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\n\n<div class=\"scope-banner\">\n <div class=\"scope-inner\">\n <span>▶<\/span>\n <span><strong>Complete manual \u2014 all ten chapters.<\/strong> Principles & Policies · Need Assessment & Planning · Supplier Relationship Management · Modes & Tendering · Bid Invitation · Securities, Prices & Payments · Bid Evaluation & Award · Procurements with Unique Features · Contract Management · Disposal of Scrap Goods.<\/span>\n <\/div>\n<\/div>\n\n\n<div class=\"breadcrumb-bar\">\n <div class=\"breadcrumb-inner\">\n <a href=\"#\">Home<\/a>\n <span class=\"sep\">›<\/span>\n <a href=\"#\">Notes<\/a>\n <span class=\"sep\">›<\/span>\n <span>Manual for Procurement of Goods (2nd Edition, 2024)<\/span>\n <\/div>\n<\/div>\n\n<div class=\"layout\">\n <aside class=\"sidebar\">\n <div class=\"toc-card\">\n <div class=\"toc-card-title\">Table of Contents<\/div>\n\n <details class=\"toc-chapter\" data-chapter=\"1\" open>\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 1<\/span>\n <span class=\"toc-ch-title\">Introduction \u2014 Principles & Policies<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">1.1<\/span><a href=\"#c1-rules\">Rules, Regulations & this Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.3<\/span><a href=\"#c1-applic\">Applicability of the Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.4<\/span><a href=\"#c1-categ\">Categorisation of Procurements<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.5<\/span><a href=\"#c1-auth\">Competent Authority & Financial Advisers<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.6<\/span><a href=\"#c1-fiver\">The Five R's of Procurement<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.7-9<\/span><a href=\"#c1-vfm\">Value for Money, Principles & Propriety<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.10<\/span><a href=\"#c1-infra\">Procurement Infrastructure at the Centre<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.11<\/span><a href=\"#c1-pref\">Reserved Items & Preference Policies<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.13-14<\/span><a href=\"#c1-cycle\">The Procurement Cycle & Nomenclature<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c1-recap\">Chapter 1 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"2\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 2<\/span>\n <span class=\"toc-ch-title\">Need Assessment, Specs & Planning<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">2.1<\/span><a href=\"#c2-need\">Need Assessment<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.1f<\/span><a href=\"#c2-cost\">Estimation of Cost<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2<\/span><a href=\"#c2-spec\">Formulation of Technical Specifications<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2.8<\/span><a href=\"#c2-green\">Green Procurement & Energy Labels<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.3<\/span><a href=\"#c2-sanction\">Sanctions, Approvals & Indents<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.4<\/span><a href=\"#c2-risk1\">Need \/ Specification Risks<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5<\/span><a href=\"#c2-plan\">Procurement Planning<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5.1<\/span><a href=\"#c2-cartel\">Cartel Mitigation & Large Procurement<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c2-recap\">Chapter 2 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"3\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 3<\/span>\n <span class=\"toc-ch-title\">Supplier Relationship Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">3.1<\/span><a href=\"#c3-srm\">What SRM Covers<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.2<\/span><a href=\"#c3-cipp\">Code of Integrity (CIPP)<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.3<\/span><a href=\"#c3-pact\">Integrity Pact<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.4<\/span><a href=\"#c3-grievance\">Grievances & Redressal<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.5<\/span><a href=\"#c3-conduct\">Conduct of Public Servants<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.6<\/span><a href=\"#c3-register\">Registration & Pre-qualification<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.7<\/span><a href=\"#c3-debar\">Debarment of Suppliers<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c3-recap\">Chapter 3 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"4\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 4<\/span>\n <span class=\"toc-ch-title\">Modes of Procurement & Tendering<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">4.1<\/span><a href=\"#c4-modes\">Five Families of Mode<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.2-5<\/span><a href=\"#c4-advertised\">Advertised \u2014 OTE, GTE, RC, eRA<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.6-9<\/span><a href=\"#c4-restricted\">Pre-qualification, LTE & SLTE<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.10-13<\/span><a href=\"#c4-nomination\">Nomination & Shopping Modes<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.14-16<\/span><a href=\"#c4-tendering\">Tendering Systems & EoI<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.17<\/span><a href=\"#c4-channels\">Channels & GeM Purchase<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c4-recap\">Chapter 4 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"5\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 5<\/span>\n <span class=\"toc-ch-title\">Bid Invitation Process<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">5.1<\/span><a href=\"#c5-tdoc\">Tender Document & MTDs<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.1.3<\/span><a href=\"#c5-filters\">Eligibility, Qualification & Evaluation<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.2<\/span><a href=\"#c5-publish\">Publication & Pre-bid<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.3<\/span><a href=\"#c5-open\">Opening of Bids<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c5-recap\">Chapter 5 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"6\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 6<\/span>\n <span class=\"toc-ch-title\">Securities, Prices & Payments<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">6.1<\/span><a href=\"#c6-sec\">Forms of Security<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.1.3<\/span><a href=\"#c6-isb\">Insurance Surety Bond & e-BG<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.5<\/span><a href=\"#c6-advance\">Advance Payments<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.6<\/span><a href=\"#c6-prices\">Firm vs Variable Price<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c6-recap\">Chapter 6 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"7\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 7<\/span>\n <span class=\"toc-ch-title\">Bid Evaluation & Award<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">7.1<\/span><a href=\"#c7-eval\">Evaluation & Tender Committee<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3<\/span><a href=\"#c7-prelim\">Preliminary Examination<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3.2<\/span><a href=\"#c7-discrep\">Discrepancies & Deviations<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.6<\/span><a href=\"#c7-award\">Award, Reasonableness & Negotiation<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c7-recap\">Chapter 7 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"8\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 8<\/span>\n <span class=\"toc-ch-title\">Procurements with Unique Features<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">8.1<\/span><a href=\"#c8-emerg\">Emergencies & Disaster Management<\/a><\/li>\n <li><span class=\"toc-sub-num\">8.3<\/span><a href=\"#c8-capital\">Capital Goods, AMC, NPV & Turnkey<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c8-recap\">Chapter 8 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"9\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 9<\/span>\n <span class=\"toc-ch-title\">Contract Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">9.1<\/span><a href=\"#c9-cm\">Lifecycle & Purpose<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.2<\/span><a href=\"#c9-qty\">Scope & Quantity Control<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.3<\/span><a href=\"#c9-time\">Time Control & LD<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.4<\/span><a href=\"#c9-quality\">Quality & Inspection<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.8<\/span><a href=\"#c9-breach\">Breach & Termination<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.9<\/span><a href=\"#c9-dispute\">Dispute Resolution & Closure<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c9-recap\">Chapter 9 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"10\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 10<\/span>\n <span class=\"toc-ch-title\">Disposal of Scrap Goods<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">10.1<\/span><a href=\"#c10-scrap\">What Counts as Scrap<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.2<\/span><a href=\"#c10-survey\">Classification & Survey<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.5<\/span><a href=\"#c10-process\">The Disposal Workflow<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c10-recap\">Chapter 10 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <\/div>\n <\/aside>\n\n <main class=\"article\">\n \n <section class=\"chapter-pane active\" id=\"pane-ch1\" data-chapter=\"1\">\n\n <div class=\"chapter-heading-block\" id=\"c1-rules\">\n <span class=\"chapter-badge\">CH 1 \u00b7 PRINCIPLES & POLICIES<\/span>\n <h2>Introduction \u2014 Principles and Policies<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What this Manual is (1.1)<\/div>\n <div class=\"def-text\">\n Ministries, Departments, attached\/subordinate offices, local bodies, PSEs and other Government (including autonomous) bodies \u2014 collectively <strong>\"Procuring Entities\"<\/strong> \u2014 spend a large part of their budget buying goods, works and services. This Manual is not a complete compendium of all rules; it is a <strong>portal<\/strong> into the area, drawing attention to the basic norms of public procurement of goods. Common-use goods and services available on GeM must be procured through it (<strong>Rule 149, GFR 2017<\/strong>); for what is not on GeM, Ministries have full powers to make their own arrangements under the DFPR.\n <\/div>\n <\/div>\n\n <p>Procurement is governed not by a single law but by a layered hierarchy \u2014 the <strong>\"Procurement Guidelines\"<\/strong> of Annexure 1. There is <strong>no exclusive procurement statute<\/strong> in the Central Government; the rules live in the GFR and orders beneath the Constitution.<\/p>\n\n <p>Public procurement rests on a five-level hierarchy of authority, from the highest source downward:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Constitution<\/strong> \u2014 Article 299 (contracts made in the President's name), with Articles 14 and 19(1)(g) underpinning fairness and free trade.<\/li>\n <li><strong>Mercantile laws<\/strong> \u2014 the Indian Contract Act 1872 and the Sale of Goods Act 1930.<\/li>\n <li><strong>Rules & Regulations<\/strong> \u2014 GFR 2017 (Chapters 6\u20139), the DFPR and standing Government orders.<\/li>\n <li><strong>Manuals of Procurement<\/strong> \u2014 Goods, Works, and Consultancy \/ Non-consultancy Services.<\/li>\n <li><strong>Procurement & Model Tender Documents<\/strong> \u2014 the operational documents used for each case.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The hierarchy of procurement authority (1.1)<\/div>\n <svg viewBox=\"0 0 680 350\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pyramid of procurement authority from the Constitution down to procurement documents\">\n<polygon points=\"340,16 426,80 254,80\" fill=\"#10243f\"\/>\n<text x=\"340\" y=\"64\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Constitution<\/text>\n<polygon points=\"250,86 430,86 464,142 216,142\" fill=\"#163e6b\"\/>\n<text x=\"340\" y=\"119\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Mercantile Laws<\/text>\n<polygon points=\"212,148 468,148 506,206 174,206\" fill=\"#1c5da6\"\/>\n<text x=\"340\" y=\"182\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Rules & Regulations<\/text>\n<polygon points=\"170,212 510,212 550,270 130,270\" fill=\"#2d8ecf\"\/>\n<text x=\"340\" y=\"246\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Manuals of Procurement<\/text>\n<polygon points=\"126,276 554,276 594,332 86,332\" fill=\"#0e8f7a\"\/>\n<text x=\"340\" y=\"309\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Tender Documents<\/text>\n<\/svg>\n <div class=\"fig-cap\">At the apex, <strong>Article 299<\/strong> requires Government contracts to be in writing by authorised officers; each lower tier adds operational detail. Restrictions under <strong>Rule 144(xi)<\/strong> (land-border bidders) and orders like Make-in-India sit in the Rules tier.<\/div>\n <\/div>\n\n <p>The <strong>Procurement Policy Division (PPD), Department of Expenditure<\/strong> is the nodal authority for revising, interpreting and clarifying this Manual (1.2).<\/p>\n\n <div class=\"section-heading-block\" id=\"c1-applic\">\n <span class=\"section-badge teal\">\u00a7 1.3<\/span>\n <h3>Applicability \u2014 who and what the Manual covers<\/h3>\n <\/div>\n\n <p>The Manual applies to the procurement of all <strong>\"Goods\"<\/strong> as defined in the Procurement Glossary. What distinguishes goods from works and services is the ability to <strong>precisely describe the technical specification and scope<\/strong>. The other manuals are generically based on this one, which therefore applies <em>mutatis mutandis<\/em> wherever they are silent.<\/p>\n\n <ol class=\"parts-list decimal teal\">\n <li><strong>Core Government (Rule 1, GFR).<\/strong> All Central Government Ministries\/Departments and attached\/subordinate bodies \u2014 and autonomous bodies, except where their Government-approved bye-laws provide separate guidelines.<\/li>\n <li><strong>CPSEs & substantially-financed bodies.<\/strong> CPSEs, PSBs, PSICs, public financial institutions, constitutional\/statutory bodies and public academic institutions \u2014 except deviations approved by their competent authority (e.g. Board of Directors).<\/li>\n <li><strong>Indian Missions & CPSE units abroad.<\/strong> May adopt GFR financial thresholds in the host currency using the latest <strong>INR\u2013PPP conversion rate<\/strong> published by the IMF (reviewed annually).<\/li>\n <li><strong>Outsourced procurement.<\/strong> Still applies when the entity outsources, bundles, or uses a procurement support agency\/agent.<\/li>\n <\/ol>\n\n <p class=\"compare-intro\">Two situations sit <strong>outside<\/strong> the guidelines \u2014 worth separating from the coverage rules above.<\/p>\n <div class=\"cat-grid\">\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 1<\/div><div class=\"cat-title\">Own subsidiaries \/ JVs<\/div><p>Procurement for own use from a subsidiary or JV in which the entity holds a <strong>controlling share<\/strong>.<\/p><\/div>\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 2<\/div><div class=\"cat-title\">IPF-funded projects<\/div><p>World Bank <strong>Investment Project Financing (IPF)<\/strong> and similar IFA instruments follow the IFA's own procedures (<strong>Rule 264, GFR 2017<\/strong>). PforR \/ Results-based lending apply the guidelines as agreed in the legal agreements.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-categ\">\n <span class=\"section-badge amber\">\u00a7 1.4<\/span>\n <h3>Categorisation of procurements<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Tangible \u00b7 own premises<\/div><div class=\"cat-title\">Goods<\/div><p>Made on the <strong>supplier's premises<\/strong> (other than installation). May include incidental works\/services \u2014 transport, insurance, installation, training.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Tangible \u00b7 buyer's site<\/div><div class=\"cat-title\">Works<\/div><p>Executed on the <strong>procuring entity's premises<\/strong> (other than pre-fabricated parts). May include incidental goods, and vice-versa.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Intangible output<\/div><div class=\"cat-title\">Services<\/div><p>Distinguished by <strong>intangible output<\/strong>. Consultancy = predominant intellectual input, one-off; Non-consultancy = routine, standardised, measurable.<\/p><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">In case of doubt \u2014 how to classify (1.4)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision tree for classifying a procurement\">\n<defs><marker id=\"t1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"250\" y=\"24\" width=\"160\" height=\"46\" rx=\"10\" fill=\"#10243f\"\/>\n<text x=\"330.0\" y=\"52.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">What is procured?<\/text>\n<line x1=\"330\" y1=\"72\" x2=\"135\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"330\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"525\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<rect x=\"60\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"135.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Goods<\/text>\n<rect x=\"255\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Works<\/text>\n<rect x=\"450\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"525.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Services<\/text>\n<rect x=\"180\" y=\"216\" width=\"300\" height=\"50\" rx=\"10\" fill=\"#fff\" stroke=\"#c97c10\" stroke-width=\"1.8\"\/>\n<text x=\"330\" y=\"240\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">In doubt?<\/text>\n<text x=\"330\" y=\"258\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" fill=\"#5a6b7d\">Default to the Goods Manual<\/text>\n<\/svg>\n <div class=\"fig-cap\">For <strong>composite contracts<\/strong> mixing elements, the <strong>primary intention<\/strong> decides the category \u2014 irrespective of the relative values. IT projects are usually handled as consultancy services.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-auth\">\n <span class=\"section-badge purple\">\u00a7 1.5<\/span>\n <h3>Competent authority & consultation with Financial Advisers<\/h3>\n <\/div>\n\n <p>The first step is the <strong>decision to procure<\/strong>, with the exact or approximate expenditure. A competent authority accords <strong>administrative sanction<\/strong> under the DFPR, following the Procurement Guidelines (<strong>Rule 145, GFR 2017<\/strong>). Each entity may issue a <strong>Schedule of Procurement Powers (SoPP)<\/strong> adding detail to the DFPR delegations. Being a financial decision, it generally requires consultation of the <strong>Financial Adviser<\/strong> (Para 19, Charter for FA, 2023):<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:41%\"><col style=\"width:41%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Normal Procedure<\/th><th>Special Procedure<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Default?<\/td><td><strong>Yes<\/strong> \u2014 applies unless the Department's Secretary approves a special procedure with DoE concurrence.<\/td><td>Adopted only with the <strong>prior concurrence of Secretary (Expenditure)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">FA\/IFD consultation<\/td><td>Concurrence of the FA\/IFD on <strong>all procurement matters<\/strong>, except where re-delegation is within permissible limits.<\/td><td>A <strong>tailored level<\/strong> of involvement, defined by financial thresholds, stages or types of procurement.<\/td><\/tr>\n <tr><td class=\"label-cell\">Scope<\/td><td colspan=\"2\">Applies only to Ministries\/Departments under the FA Charter; <strong>CPSEs may devise their own systems<\/strong>. Payments under approved contracts need no IFD consultation, except where in relaxation\/variation of approved conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-fiver\">\n <span class=\"section-badge blue\">\u00a7 1.6<\/span>\n <h3>Basic aims \u2014 the Five R's of Procurement<\/h3>\n <\/div>\n\n <p>Every procurement seeks the <strong>optimal balance<\/strong> \u2014 \"right\" means optimal, not cheapest or most \u2014 across five parameters.<\/p>\n\n <p>The \"Five R's\" are the objectives every procurement balances: <strong>Right Quality<\/strong>, <strong>Right Quantity<\/strong>, <strong>Right Price<\/strong>, <strong>Right Time & Place<\/strong>, and the <strong>Right Source<\/strong> \u2014 none pursued so far as to defeat the others.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The Five R's around the optimal balance (1.6)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pentagon of the five R's of procurement\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"205\" x2=\"300.0\" y2=\"77.0\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"421.7\" y2=\"165.4\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"375.2\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"224.8\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"178.3\" y2=\"165.4\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"205\" r=\"56\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">FIVE<\/text>\n<text x=\"300\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">R’s<\/text>\n<circle cx=\"300.0\" cy=\"77.0\" r=\"46\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"300.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#1c5da6\">R1<\/text>\n<text x=\"300.0\" y=\"91.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quality<\/text>\n<circle cx=\"421.7\" cy=\"165.4\" r=\"46\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"421.7\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#0e8f7a\">R2<\/text>\n<text x=\"421.7\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quantity<\/text>\n<circle cx=\"375.2\" cy=\"308.6\" r=\"46\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"375.2\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c97c10\">R3<\/text>\n<text x=\"375.2\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Price<\/text>\n<circle cx=\"224.8\" cy=\"308.6\" r=\"46\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"224.8\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#7e3eb5\">R4<\/text>\n<text x=\"224.8\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Time\/Place<\/text>\n<circle cx=\"178.3\" cy=\"165.4\" r=\"46\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"178.3\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c0392b\">R5<\/text>\n<text x=\"178.3\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Source<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Quality<\/strong> refines into utility\/value; <strong>Price<\/strong> into life-cycle cost (not the cheapest); <strong>Source<\/strong> must have the right financial capacity and technical capability shown by past performance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-vfm\">\n <span class=\"section-badge teal\">\u00a7 1.7–1.9<\/span>\n <h3>Value for Money, fundamental principles & financial propriety<\/h3>\n <\/div>\n\n <p>The concept of price is refined into <strong>Total Cost of Ownership (TCO) \/ Life Cycle Cost (LCC) \/ Whole-of-Life (WOL)<\/strong>, and quality into <strong>utility\/value<\/strong>. Together they give <strong>Value for Money (VfM)<\/strong> \u2014 the effective, efficient and economical use of resources, weighing costs, benefits, risks and non-price attributes. <strong>Price alone is not VfM.<\/strong><\/p>\n\n <p>The cost of ownership runs well beyond the purchase price. Over the whole life it comprises <strong>acquisition<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance<\/strong>, and <strong>disposal<\/strong> costs.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Whole-of-Life cost \u2014 beyond the purchase price (1.7)<\/div>\n <svg viewBox=\"0 0 660 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Stacked bar showing whole of life cost components\">\n<rect x=\"40\" y=\"70\" width=\"162\" height=\"70\" fill=\"#1c5da6\"\/>\n<text x=\"121\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Acquisition<\/text>\n<rect x=\"202\" y=\"70\" width=\"174\" height=\"70\" fill=\"#0e8f7a\"\/>\n<text x=\"289\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Operation<\/text>\n<rect x=\"376\" y=\"70\" width=\"174\" height=\"70\" fill=\"#c97c10\"\/>\n<text x=\"463\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Maintenance<\/text>\n<rect x=\"550\" y=\"70\" width=\"70\" height=\"70\" fill=\"#41617f\"\/>\n<text x=\"585\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<text x=\"40\" y=\"50\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">Total Cost of Ownership over the whole life<\/text>\n<line x1=\"40\" y1=\"155\" x2=\"620\" y2=\"155\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<text x=\"40\" y=\"175\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#1c5da6\">purchase<\/text>\n<text x=\"620\" y=\"175\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#41617f\">end of life<\/text>\n<\/svg>\n <div class=\"fig-cap\">VfM is achieved through the <strong>widest competition<\/strong> \u2014 optimal description of need, value-engineered specifications, appropriate packaging\/slicing, and the right mode of procurement.<\/div>\n <\/div>\n\n <p class=\"compare-intro\"><strong>The five Fundamental Principles of Public Procurement (1.8)<\/strong> \u2014 GFR 2017, Rule 144 organises every authority's duties into five principles they must abide by and be accountable for.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table\">\n <colgroup><col style=\"width:26%\"><col style=\"width:74%\"><\/colgroup>\n <thead><tr><th>Principle<\/th><th>What it requires<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Transparency<\/td><td>Fairness, equality, competition and appeal rights through <strong>simultaneous, symmetric, unrestricted<\/strong> information; do only what was pre-declared in the published documents; publish on <strong>GeM & CPPP<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Professionalism<\/td><td>Economy, efficiency, effectiveness and integrity; avoid wasteful\/dilatory practices; comply with the <strong>Code of Integrity (CIPP)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Broader Obligations<\/td><td>Social\/economic goals \u2014 Make-in-India, MSE\/weaker-section reservation, Start-up support, and <strong>land-border restrictions under Rule 144(xi)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Extended Legal Responsibilities<\/td><td>Beyond mercantile law \u2014 courts review public procurement as a function of the <strong>State<\/strong>; plus RTI Act, Prevention of Corruption Act, etc.<\/td><\/tr>\n <tr><td class=\"label-cell\">Public Accountability<\/td><td>Answerable to the Legislature, CVC, CAG, CBI; <strong>each transaction<\/strong> scrutinised in isolation; record considerations at every stage (Rule 144(viii)) and retain audit trails.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>Like any Government expenditure, procurement must meet the <strong>Standards (Canons) of Financial Propriety \u2014 Rule 21, GFR 2017<\/strong>:<\/p>\n <ol class=\"parts-list roman gold\">\n <li><strong>Ordinary prudence.<\/strong> Exercise the same vigilance over public money as a person of ordinary prudence would over their own.<\/li>\n <li><strong>Not more than the occasion demands.<\/strong> Expenditure should not prima facie exceed what the occasion requires.<\/li>\n <li><strong>No self-advantage.<\/strong> No authority sanctions expenditure to its own direct or indirect advantage.<\/li>\n <li><strong>No undue favour.<\/strong> No spending for a particular person\/section unless a claim is enforceable in law or it follows a recognised policy\/custom.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c1-infra\">\n <span class=\"section-badge slate\">\u00a7 1.10<\/span>\n <h3>Public procurement infrastructure at the Centre<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">1.10.1<\/div><div class=\"cat-title\">PPD<\/div><p><strong>Procurement Policy Division<\/strong> (DoE) \u2014 drives uniformity through best practices, guidance, manuals and Model Tender Documents. It does <strong>not<\/strong> centralise procurement.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">1.10.2<\/div><div class=\"cat-title\">CPPP<\/div><p><strong>Central Public Procurement Portal<\/strong> (NIC) \u2014 single-point access; <strong>mandatory<\/strong> publication of tenders and contracts; e-publishing + e-procurement modules.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">1.10.3<\/div><div class=\"cat-title\">GeM<\/div><p><strong>Government e-Marketplace<\/strong> \u2014 the National Public Procurement Portal; <strong>paperless, contactless, cashless<\/strong>; mandatory for common-use goods (Rule 149).<\/p><\/div>\n <\/div>\n\n <p>Four statutory bodies provide external oversight of procurement; their reach and powers differ sharply.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:26%\"><col style=\"width:56%\"><\/colgroup>\n <thead><tr><th>Body<\/th><th>Statute<\/th><th>Role & distinctive power<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">CAG<\/td><td>Articles 149\u2013151<\/td><td><strong>Supreme Audit Institution of India<\/strong>; compliance, financial, performance, thematic & IT audits; may inspect any audited office, examine transactions and decide the audit's extent & manner.<\/td><\/tr>\n <tr><td class=\"label-cell\">Lokpal \/ Lokayukta<\/td><td>Lokpal & Lokayukta Act, 2013 (amd. 2016)<\/td><td>Anti-corruption <strong>ombudsman<\/strong>; covers Union Ministers (incl. PM), MPs, public servants and FCRA NGOs above <strong>\u20b910 lakh\/yr<\/strong>; <strong>1 Chair + up to 8 members<\/strong> (4 judicial); may refer cases to the CBI.<\/td><\/tr>\n <tr><td class=\"label-cell\">CVC<\/td><td>CVC Act, 2003<\/td><td>Apex oversight; <strong>recommendatory, no punitive power<\/strong>; has <strong>superintendence over the CBI<\/strong> for PC-Act cases; two Chief Technical Examiners watch procurement; entities appoint a CVO in consultation with CVC.<\/td><\/tr>\n <tr><td class=\"label-cell\">CBI (DSPE)<\/td><td>Delhi Special Police Establishment Act, 1946<\/td><td>Only agency with <strong>police powers<\/strong> (arrest, seizure); prosecutes under the <strong>Prevention of Corruption Act, 1988<\/strong>; needs prior approval to probe officers of <strong>Joint Secretary & above<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-pref\">\n <span class=\"section-badge gold\">\u00a7 1.11<\/span>\n <h3>Reserved items & purchase \/ price preference policies<\/h3>\n <\/div>\n\n <p>The Central Government may, by notification, mandate procurement from a category of bidders or grant <strong>preference<\/strong> to promote local manufacture (<strong>Rule 153, GFR 2017<\/strong>). Any reservation\/preference must appear in the <strong>NIT<\/strong> and Instructions to Bidders. The numbers that drive these policies:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">20%<\/div><div class=\"st-cap\"><strong>Khadi \/ handloom<\/strong> textiles from KVIC & clusters (Rule 153(i))<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">358<\/div><div class=\"st-cap\">Items reserved for <strong>exclusive purchase from MSEs<\/strong> (incl. 8 handicrafts)<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">25%<\/div><div class=\"st-cap\">Min. annual <strong>MSE procurement<\/strong> target (Rule 153(ii))<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">4% \/ 3%<\/div><div class=\"st-cap\">Sub-targets \u2014 <strong>SC\/ST-owned<\/strong> & <strong>women-owned<\/strong> MSEs<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 + 15%<\/div><div class=\"st-cap\"><strong>MSE<\/strong> price band to match L1 (supply up to 25%)<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">50% \/ 20%<\/div><div class=\"st-cap\"><strong>MII local content<\/strong> \u2014 Class-I \/ Class-II minimum<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">L1 + 20%<\/div><div class=\"st-cap\"><strong>MII margin<\/strong> of purchase preference<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b95 L<\/div><div class=\"st-cap\">MII <strong>exemption<\/strong> below this value (no splitting)<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b910 cr<\/div><div class=\"st-cap\">Above this, local content needs a <strong>CA\/cost-auditor certificate<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">45 days<\/div><div class=\"st-cap\">MSMED Act payment limit; delay \u2192 <strong>3\u00d7 RBI bank-rate<\/strong> interest<\/div><\/div>\n <\/div>\n\n <p>The <strong>Make-in-India (MII), Order 2017<\/strong> preference logic depends on whether the lowest bidder (L1) is a Class-I local supplier:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Make-in-India purchase-preference flow \u2014 divisible procurement (1.11.3)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision flow for Make in India purchase preference\">\n<defs><marker id=\"m1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"m2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<polygon points=\"330,30 470,95 330,160 190,95\" fill=\"#fff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"330\" y=\"90\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Is L1 a<\/text>\n<text x=\"330\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Class-I supplier?<\/text>\n<line x1=\"470\" y1=\"95\" x2=\"558\" y2=\"95\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m2)\"\/>\n<text x=\"500\" y=\"86\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#0e8f7a\">YES<\/text>\n<rect x=\"560\" y=\"72\" width=\"92\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"606\" y=\"94\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">Award to<\/text>\n<text x=\"606\" y=\"109\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">L1<\/text>\n<line x1=\"330\" y1=\"160\" x2=\"330\" y2=\"203\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m1)\"\/>\n<text x=\"342\" y=\"185\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">NO<\/text>\n<rect x=\"150\" y=\"208\" width=\"360\" height=\"58\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"232\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Offer Class-I lowest the chance to<\/text>\n<text x=\"330\" y=\"251\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">match L1 (purchase preference)<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Class-II suppliers get no preference.<\/strong> Local content is about value added in India \u2014 <em>not<\/em> the nationality of the firm. A false local-content claim attracts a penalty up to <strong>10% of contract value<\/strong> (contract is not terminated).<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Other preference policies in brief<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">LAND BORDER<\/span><span class=\"nl-text\"><strong>Rule 144(xi)<\/strong> \u2014 bidders from a country sharing a land border with India must be <strong>registered with the competent authority<\/strong>, on national-security grounds (credit-line \/ exempted cases apart).<\/span><\/li>\n <li><span class=\"nl-tag\">START-UP<\/span><span class=\"nl-text\">DPIIT-recognised <strong>Start-ups<\/strong> are exempt from bid security and may get relaxed prior turnover\/experience, subject to meeting quality & technical specifications.<\/span><\/li>\n <li><span class=\"nl-tag\">DMI&SP<\/span><span class=\"nl-text\"><strong>Domestically Manufactured Iron & Steel Products Policy, 2019<\/strong> \u2014 purchase preference for domestic iron & steel, overseen by a Standing Committee under the Ministry of Steel.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-cycle\">\n <span class=\"section-badge red\">\u00a7 1.13–1.14<\/span>\n <h3>The public procurement cycle & the nomenclature conundrum<\/h3>\n <\/div>\n\n <p>Procurement runs as a repeating five-stage cycle: <strong>Need<\/strong> \u2192 <strong>Bid Invitation<\/strong> \u2192 <strong>Evaluate & Award<\/strong> \u2192 <strong>Contract Management<\/strong> \u2192 <strong>Disposal<\/strong>. Each stage is the subject of a later chapter.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The five-stage procurement cycle (1.13)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Circular five-stage procurement cycle\">\n<defs><marker id=\"arc\" markerUnits=\"userSpaceOnUse\" markerWidth=\"11\" markerHeight=\"11\" refX=\"9.5\" refY=\"5.5\" orient=\"auto\"><path d=\"M1 1.5 L9.5 5.5 L1 9.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<circle cx=\"300\" cy=\"205\" r=\"140\" fill=\"none\" stroke=\"#dde6ef\" stroke-width=\"2\" stroke-dasharray=\"3 7\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Procurement<\/text>\n<text x=\"300\" y=\"225\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Cycle<\/text>\n<path d=\"M347.9 73.4 A 140 140 0 0 1 410.3 118.8\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M439.9 209.9 A 140 140 0 0 1 416.1 283.3\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M338.6 339.6 A 140 140 0 0 1 261.4 339.6\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M183.9 283.3 A 140 140 0 0 1 160.1 209.9\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M189.7 118.8 A 140 140 0 0 1 252.1 73.4\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<circle cx=\"300.0\" cy=\"65.0\" r=\"40\" fill=\"#1c5da6\"\/>\n<text x=\"300.0\" y=\"56.5\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">1<\/text>\n<text x=\"300.0\" y=\"70.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Need<\/text>\n<circle cx=\"433.1\" cy=\"161.7\" r=\"40\" fill=\"#0e8f7a\"\/>\n<text x=\"433.1\" y=\"146.7\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">2<\/text>\n<text x=\"433.1\" y=\"160.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Bid<\/text>\n<text x=\"433.1\" y=\"173.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Invitation<\/text>\n<circle cx=\"382.3\" cy=\"318.3\" r=\"40\" fill=\"#c97c10\"\/>\n<text x=\"382.3\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">3<\/text>\n<text x=\"382.3\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Evaluate<\/text>\n<text x=\"382.3\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">& Award<\/text>\n<circle cx=\"217.7\" cy=\"318.3\" r=\"40\" fill=\"#7e3eb5\"\/>\n<text x=\"217.7\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">4<\/text>\n<text x=\"217.7\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Contract<\/text>\n<text x=\"217.7\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Mgmt<\/text>\n<circle cx=\"166.9\" cy=\"161.7\" r=\"40\" fill=\"#c0392b\"\/>\n<text x=\"166.9\" y=\"153.2\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">5<\/text>\n<text x=\"166.9\" y=\"167.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<\/svg>\n <div class=\"fig-cap\">Each stage is detailed in later chapters: Need (Ch 2), Bid Invitation (Ch 5), Evaluation & Award (Ch 7), Contract Management (Ch 9), Disposal (Ch 10).<\/div>\n <\/div>\n\n <div class=\"highlight-box\">\n <div class=\"hl-label\">Nomenclature (1.14)<\/div>\n <div class=\"hl-text\">Indian public procurement mixes American, European and British\/Indian terms. The Manual standardises <strong>\"Tender\"<\/strong> for the <em>tender document \/ process<\/em> published by the procuring entity, and <strong>\"Bid\"<\/strong> for what the <strong>bidder<\/strong> submits \u2014 so \"bidder\" replaces \"tenderer\", without disturbing terms already embedded in CPPP\/GeM (e.g. \"Pre-qualification Bidding\").<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz1\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 1 Quiz \u2014 principles, infrastructure & preferences<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 1. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage1\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c1-recap\">\n <div class=\"recap-title\">⚡ Chapter 1 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Apex statutory anchor<\/td><td><strong>Article 299<\/strong> \u2014 Government contracts in writing by authorised officers<\/td><\/tr>\n <tr><td>Core rules<\/td><td><strong>GFR 2017 (Ch 6\u20139)<\/strong>, DFPR; no exclusive procurement law<\/td><\/tr>\n <tr><td>GeM mandatory<\/td><td>Common-use goods\/services \u2014 <strong>Rule 149, GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Nodal authority<\/td><td><strong>PPD, Department of Expenditure<\/strong><\/td><\/tr>\n <tr><td>Five R's<\/td><td>Right Quality \u00b7 Quantity \u00b7 Price \u00b7 Time & Place \u00b7 Source<\/td><\/tr>\n <tr><td>Value for Money<\/td><td><strong>TCO \/ LCC \/ WOL<\/strong>; price alone is not VfM<\/td><\/tr>\n <tr><td>Five principles<\/td><td>Transparency \u00b7 Professionalism \u00b7 Broader Obligations \u00b7 Extended Legal \u00b7 Public Accountability (<strong>Rule 144<\/strong>)<\/td><\/tr>\n <tr><td>Financial propriety<\/td><td><strong>Rule 21, GFR<\/strong> \u2014 ordinary-prudence test<\/td><\/tr>\n <tr><td>CAG<\/td><td><strong>Articles 149\u2013151<\/strong>; SAII<\/td><\/tr>\n <tr><td>Khadi \/ MSE reservation<\/td><td><strong>20%<\/strong> handloom; <strong>358<\/strong> items exclusive to MSEs<\/td><\/tr>\n <tr><td>MSE purchase target<\/td><td><strong>25%<\/strong> (4% SC\/ST, 3% women); MSE band <strong>L1+15%<\/strong><\/td><\/tr>\n <tr><td>MII local content<\/td><td>Class-I <strong>50%<\/strong>, Class-II <strong>20%<\/strong>; preference margin <strong>20%<\/strong><\/td><\/tr>\n <tr><td>MII exemptions<\/td><td>Below <strong>\u20b95 lakh<\/strong>; CA certificate above <strong>\u20b910 crore<\/strong><\/td><\/tr>\n <tr><td>Procurement cycle<\/td><td>Need \u2192 Bid Invitation \u2192 Evaluation\/Award \u2192 Contract Mgmt \u2192 Disposal<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch2\" data-chapter=\"2\">\n\n <div class=\"chapter-heading-block\" id=\"c2-need\">\n <span class=\"chapter-badge\">CH 2 \u00b7 NEED & PLANNING<\/span>\n <h2>Need Assessment, Specifications & Procurement Planning<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Where procurement begins (2.1)<\/div>\n <div class=\"def-text\">\n Procurement should be initiated <strong>only on an indent<\/strong> from the user Department (Annexure 5). The indenting authority first determines the <strong>need and anticipated quantum<\/strong>. A clear description and specification of need is of fundamental importance to value for money, transparency, competition and a level playing field \u2014 and the user department must <strong>retain all documents<\/strong> on the determination and the technical\/financial\/budgetary approvals.\n <\/div>\n <\/div>\n\n <p>Six matters are settled during the need-assessment stage, each feeding into the indent:<\/p>\n\n <p>Need assessment settles six questions before a tender is floated:<\/p>\n <ol class=\"parts-list decimal teal\">\n <li><strong>Description<\/strong> \u2014 what is needed, by generic description and not by brand name.<\/li>\n <li><strong>Method<\/strong> \u2014 whether to own, lease, hire, or buy it as a service.<\/li>\n <li><strong>Quantity<\/strong> \u2014 how much, in the proper unit of measure.<\/li>\n <li><strong>Time & Place<\/strong> \u2014 when and where it is required, planned well in advance.<\/li>\n <li><strong>Specifications<\/strong> \u2014 the technical specification (covered in 2.2).<\/li>\n <li><strong>Cost Estimate<\/strong> \u2014 a realistic, objective estimate of value.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">What need assessment must decide (2.1)<\/div>\n <svg viewBox=\"0 0 600 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Hub and spoke of the six need-assessment decisions\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"56.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"123.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"324.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"123.0\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"190\" r=\"58\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"186\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">NEED<\/text>\n<text x=\"300\" y=\"205\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#cfe0f2\">assessment<\/text>\n<rect x=\"221.0\" y=\"33.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"61.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#1c5da6\">Description<\/text>\n<rect x=\"337.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#0e8f7a\">Method<\/text>\n<rect x=\"337.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c97c10\">Quantity<\/text>\n<rect x=\"221.0\" y=\"301.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"329.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#7e3eb5\">Time & Place<\/text>\n<rect x=\"105.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c0392b\">Specifications<\/text>\n<rect x=\"105.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#41617f\">Cost Estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Except for proprietary single-source purchase, avoid brand \/ trade names; where unavoidable, add the words <strong>\"or substantially equivalent\"<\/strong>. Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight, not length).<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-cost\">\n <span class=\"section-badge slate\">\u00a7 2.1(f)<\/span>\n <h3>Estimation of cost<\/h3>\n <\/div>\n\n <p>The estimated cost is vital for approvals and for judging the reasonableness of bid prices, so it must be worked out <strong>realistically and objectively<\/strong>. The methods are neither mandatory nor ranked \u2014 <strong>triangulating<\/strong> several gives a more accurate estimate. Which one fits depends on what data exists:<\/p>\n\n <p>A realistic estimate is built, in order of preference, from: <strong>market price discovery<\/strong>; the <strong>Last Purchase Price<\/strong> updated for quantity, time and terms; <strong>budgetary or catalogue rates<\/strong>; and, failing these, indices and a professional estimate.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Choosing a cost-estimation method (2.1(f))<\/div>\n <svg viewBox=\"0 0 660 270\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision ladder for cost estimation methods\">\n<rect x=\"60\" y=\"30\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"30\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#1c5da6\"\/>\n<circle cx=\"92\" cy=\"53.0\" r=\"14\" fill=\"#1c5da6\"\/>\n<text x=\"92\" y=\"58.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"120\" y=\"58.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Market price discovery<\/text>\n<rect x=\"60\" y=\"88\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"88\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<circle cx=\"92\" cy=\"111.0\" r=\"14\" fill=\"#0e8f7a\"\/>\n<text x=\"92\" y=\"116.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"120\" y=\"116.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Last Purchase Price + update<\/text>\n<rect x=\"60\" y=\"146\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"146\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#c97c10\"\/>\n<circle cx=\"92\" cy=\"169.0\" r=\"14\" fill=\"#c97c10\"\/>\n<text x=\"92\" y=\"174.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"120\" y=\"174.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Budgetary \/ catalogue rates<\/text>\n<rect x=\"60\" y=\"204\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"204\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#41617f\"\/>\n<circle cx=\"92\" cy=\"227.0\" r=\"14\" fill=\"#41617f\"\/>\n<text x=\"92\" y=\"232.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"120\" y=\"232.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Indices & professional estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Budgetary quotes are <strong>not<\/strong> exact estimates: a bidder expecting shortlisting may quote high, one not expecting it may quote abnormally low. Where fewer than three arrive, average those received.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-spec\">\n <span class=\"section-badge amber\">\u00a7 2.2<\/span>\n <h3>Formulation of Technical Specifications (TS)<\/h3>\n <\/div>\n\n <p>Specifications are the <strong>benchmarks<\/strong> against which technical responsiveness is verified and bids evaluated (<strong>Rule 173(ix), GFR 2017<\/strong>). Well-defined TS help bidders prepare responsive bids and the entity compare them, and they safeguard quality. A good specification must:<\/p>\n\n <ol class=\"parts-list decimal amber\">\n <li><strong>Ensure a level playing field<\/strong> and the widest competition; be unambiguous, precise, objective, functional, broad-based\/generic, standardised and measurable.<\/li>\n <li><strong>Cover only the bare essential<\/strong> technical, qualitative and performance characteristics \u2014 no superfluous features causing unwarranted expenditure.<\/li>\n <li><strong>Rest on BIS standards<\/strong> where they exist (preference to BIS-marked goods); international standards only in their absence, with deviations recorded in writing.<\/li>\n <li><strong>Use metric units<\/strong> for all dimensions (FPS equivalents shown only if unavoidable).<\/li>\n <li><strong>Require new, unused, current models<\/strong> incorporating recent design and material improvements \u2014 avoiding obsolete goods, unless otherwise provided.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-green\">\n <span class=\"section-badge teal\">\u00a7 2.2.8<\/span>\n <h3>Green procurement, Ecomark & energy-efficiency labels<\/h3>\n <\/div>\n\n <p>Specifications should comply with <strong>sustainability criteria<\/strong> and pollution-control rules, prefer low-impact packaging, and may require the <strong>Ecomark Label<\/strong> under the <strong>Ecomark Certification Rules, 2023<\/strong> \u2014 supporting the principle of <strong>LiFE (Lifestyle for Environment)<\/strong>. Energy efficiency is signalled by the BEE star system:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">1 Mar 2002<\/div><div class=\"st-cap\"><strong>BEE<\/strong> set up under the Energy Conservation Act, 2001<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">34 \/ 11<\/div><div class=\"st-cap\">Appliances covered \/ for which <strong>labelling is mandatory<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">5\u2605 AC<\/div><div class=\"st-cap\">Split AC threshold (usage >1000 hrs\/yr; <strong>3\u2605<\/strong> if limited)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4\u2605 fridge<\/div><div class=\"st-cap\">Frost-free refrigerator threshold rating<\/div><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">BEE star rating \u2014 the higher the stars, the more efficient<\/div>\n <svg viewBox=\"0 0 660 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Five star energy efficiency meter\">\n<rect x=\"80\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#cfe8d8\"\/>\n<text x=\"124.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★<\/text>\n<rect x=\"176\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#9ed4b3\"\/>\n<text x=\"220.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★★<\/text>\n<rect x=\"272\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#5cb98a\"\/>\n<text x=\"316.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">3★<\/text>\n<rect x=\"368\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#2a9d6a\"\/>\n<text x=\"412.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">4★<\/text>\n<rect x=\"464\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<text x=\"508.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">5★<\/text>\n<text x=\"80\" y=\"52\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">BEE star rating \u2014 more stars = more energy-efficient<\/text>\n<text x=\"80\" y=\"158\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"700\" fill=\"#0e8f7a\">Higher rating, lower running cost →<\/text>\n<\/svg>\n <div class=\"fig-cap\">Specifications should emphasise efficiency, optimum fuel\/power use, environmentally friendly materials, reduced noise\/emissions and low maintenance cost.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-sanction\">\n <span class=\"section-badge purple\">\u00a7 2.3<\/span>\n <h3>Technical, administrative & budgetary sanctions and indents<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Raise the indent<\/div><div class=\"fs-text\">User department submits a <strong>Purchase Requisition<\/strong> (Annexure 5), allowing adequate procurement time.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Certify funds<\/div><div class=\"fs-text\">Certify <strong>budget availability<\/strong> and note the liability against the available budget before approval.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Approve \/ urgency<\/div><div class=\"fs-text\">Approve per the Schedule of Powers (Annexure 4); a short lead time needs an <strong>urgency certificate<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Monitor<\/div><div class=\"fs-text\">Indentor and procuring authority track progress through registers (Annexures 6 & 7).<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-risk1\">\n <span class=\"section-badge red\">\u00a7 2.4<\/span>\n <h3>Need assessment & specification \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Need <strong>artificially created or exaggerated<\/strong> to channel benefit to a person\/organisation.<\/td><td>Keep records of decisions and data; involve <strong>procurement and finance functions<\/strong>; consult end-users and stakeholders.<\/td><\/tr>\n <tr><td><strong>Delays<\/strong> in need assessment \/ indent generation force shortcut procedures that dilute transparency and VfM.<\/td><td>Assess need <strong>well in advance<\/strong>; for urgent cases record justification and obtain an urgency certificate from the competent authority.<\/td><\/tr>\n <tr><td><strong>Inadequate cost estimate<\/strong> causes poor bidder response, delays or quality loss.<\/td><td>Prepare estimates with <strong>due diligence<\/strong>, factoring inflation, technology change and profit margins.<\/td><\/tr>\n <tr><td><strong>Subjective specifications<\/strong> (e.g. sample-based evaluation) invite allegations of corruption.<\/td><td>Display a <strong>stock sample<\/strong> for indeterminable parameters (shade, finish, workmanship); require a <strong>pre-production sample<\/strong> before bulk clearance.<\/td><\/tr>\n <tr><td>Specifications <strong>tilted to favour<\/strong> a vendor; or <strong>asymmetric<\/strong> sharing of need information.<\/td><td>Use a formal market-discovery tool \u2014 a <strong>pre-bid conference and\/or well-publicised EoI<\/strong>; invite comments on the conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c2-plan\">\n <span class=\"section-badge blue\">\u00a7 2.5<\/span>\n <h3>Procurement planning<\/h3>\n <\/div>\n\n <p>After the indent, the procuring entity makes the decisions that turn a need into a tender. Three numbers anchor the discipline:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 144(x)<\/div><div class=\"st-cap\">Publish the <strong>Annual Procurement Plan<\/strong> on GeM\/CPPP \u2014 not an initiation of procurement<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">10 days<\/div><div class=\"st-cap\">Working days to <strong>review the indent<\/strong> for completeness, funding & VfM<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 157<\/div><div class=\"st-cap\">Normally <strong>do not split\/package<\/strong> to limit competition or avoid sanction<\/div><\/div>\n <\/div>\n\n <ol class=\"parts-list decimal\">\n <li><strong>Reassess quantity & packaging\/slicing.<\/strong> Division is allowed only for reasons recorded in writing \u2014 efficiency, economy, timely supply, wider competition or <strong>MSE access<\/strong>.<\/li>\n <li><strong>Declare any participation limits<\/strong> as per the Government's preference policy; lay down only reasonable, justifiable eligibility\/pre-qualification criteria.<\/li>\n <li><strong>Select the tendering system<\/strong> (single\/two stage, single\/two bid) and the <strong>mode of procurement<\/strong> (open \/ limited \/ single tender, reverse auction).<\/li>\n <li><strong>Declare timeframes<\/strong> for each stage from tender to contract (Rule 144(ix)), and prepare an <strong>integrated annual procurement plan<\/strong> staggering loads across the year.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-cartel\">\n <span class=\"section-badge slate\">\u00a7 2.5.1<\/span>\n <h3>Mitigating cartels & strategising large procurement<\/h3>\n <\/div>\n\n <p>Need assessment and procurement planning is the main stage at which <strong>cartel formation<\/strong> can be addressed \u2014 by widening the field and varying the pattern bidders rely on:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Widen the field<\/div><div class=\"cat-title\">More suppliers<\/div><p>Encourage new firms to register; review tailor-made specifications so commercially available alternatives qualify; consider substitutes.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Watch the venue<\/div><div class=\"cat-title\">Pre-bid caution<\/div><p>Pre-bid conferences can <strong>facilitate collusion<\/strong> \u2014 hold them virtually where feasible, though they remain useful for turnkey or costly equipment.<\/p><\/div>\n <div class=\"cat-card e\"><div class=\"cat-label\">Break the pattern<\/div><div class=\"cat-title\">Vary year-on-year<\/div><p>Change the <strong>mode<\/strong> (OTE\u2194LTE, GTE\u2194OTE), the <strong>quantity<\/strong> (package\/slice\/club items) and the <strong>pre-qualification criteria<\/strong>.<\/p><\/div>\n <\/div>\n\n <p>Large procurements need market research before rules are applied \u2014 the parameters worth studying are production capacity vs demand, the <strong>volume<\/strong> of the requirement relative to the market (would clubbing raise bargaining power?), the level of <strong>competition<\/strong> and cartelisation, <strong>supply-chain<\/strong> constraints (raw materials, logistics, geopolitics), specification variations, and <strong>pricing trends\/seasonality<\/strong>.<\/p>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Procurement planning \u2014 the headline risk (2.5.2)<\/div>\n <p><strong>Packaging, bundling or slicing<\/strong> done to avoid or reduce open competition \u2014 or a package so large that MSEs cannot participate \u2014 is the chief planning risk. The mitigation is a <strong>clear written policy<\/strong> for packaging\/bundling, with EMD affordability kept in view and bidders allowed to <strong>bid for slices<\/strong> against proportional EMD.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz2\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 2 Quiz \u2014 need, specifications & planning<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 2. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage2\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c2-recap\">\n <div class=\"recap-title\">⚡ Chapter 2 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Trigger for procurement<\/td><td>An <strong>indent<\/strong> from the user Department (Annexure 5)<\/td><\/tr>\n <tr><td>Brand names<\/td><td>Avoid; if unavoidable add <strong>\"or substantially equivalent\"<\/strong><\/td><\/tr>\n <tr><td>Units of purchase<\/td><td>Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight)<\/td><\/tr>\n <tr><td>Cost estimation<\/td><td><strong>Triangulate<\/strong>; budgetary quotes ideally <strong>three<\/strong> (10\u201321 days)<\/td><\/tr>\n <tr><td>Specifications standard<\/td><td>Based on <strong>BIS<\/strong>; prefer BIS-marked goods; metric units<\/td><\/tr>\n <tr><td>Specs rule reference<\/td><td><strong>Rule 173(ix), GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Energy labels (BEE)<\/td><td>BEE since <strong>1 Mar 2002<\/strong>; Split AC <strong>5\u2605<\/strong>, fridge <strong>4\u2605<\/strong><\/td><\/tr>\n <tr><td>Green label<\/td><td><strong>Ecomark Rules 2023<\/strong>; principle of LiFE<\/td><\/tr>\n <tr><td>Sanction prerequisite<\/td><td>Certify <strong>budget availability<\/strong>; urgency certificate if short lead<\/td><\/tr>\n <tr><td>Annual Procurement Plan<\/td><td><strong>Rule 144(x)<\/strong>; not a procurement initiation<\/td><\/tr>\n <tr><td>Review window<\/td><td><strong>10 working days<\/strong> to review the indent<\/td><\/tr>\n <tr><td>No splitting<\/td><td><strong>Rule 157, GFR 2017<\/strong> \u2014 except for recorded reasons (incl. MSE access)<\/td><\/tr>\n <tr><td>Cartel mitigation<\/td><td>Best at planning \u2014 vary mode, quantity & criteria<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch3\" data-chapter=\"3\">\n\n <div class=\"chapter-heading-block\" id=\"c3-srm\">\n <span class=\"chapter-badge\">CH 3 \u00b7 SUPPLIER RELATIONS<\/span>\n <h2>Supplier Relationship Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What SRM covers (3.1)<\/div>\n <div class=\"def-text\">\n Supplier Relationship Management binds the supply side to ethical conduct and keeps the supplier base healthy. It has three functions: ensuring suppliers <strong>comply with the Code of Integrity and Integrity Pact (CIPP)<\/strong> where stipulated; <strong>removing<\/strong> firms from the registered list and <strong>debarring<\/strong> them where warranted; and <strong>developing new sources<\/strong> and registering suppliers.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-cipp\">\n <span class=\"section-badge red\">\u00a7 3.2<\/span>\n <h3>Code of Integrity for Public Procurement (CIPP)<\/h3>\n <\/div>\n\n <p>Public procurement is prone to corruption and ethical risk, so both procuring officials and bidders\/suppliers must observe the highest standard of ethics (<strong>Rule 175, GFR 2017<\/strong>). Officials sign periodic declarations; bidders declare adherence in registration and tender documents, with a warning of punitive action. The code forbids seven prohibited practices:<\/p>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The seven prohibited practices under the Code of Integrity (3.2)<\/div>\n <svg viewBox=\"0 0 640 470\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Seven prohibited practices under the Code of Integrity\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"320\" y1=\"225\" x2=\"320.0\" y2=\"67.0\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"443.5\" y2=\"126.5\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"474.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"388.6\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"251.4\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"166.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"196.5\" y2=\"126.5\"\/>\n<\/g>\n<circle cx=\"320\" cy=\"225\" r=\"60\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"219\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">CODE OF<\/text>\n<text x=\"320\" y=\"235\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">INTEGRITY<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#ffd95a\">Rule 175<\/text>\n<circle cx=\"320.0\" cy=\"67.0\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"320.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Corrupt<\/text>\n<circle cx=\"443.5\" cy=\"126.5\" r=\"48\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"443.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c97c10\">Fraudulent<\/text>\n<circle cx=\"474.0\" cy=\"260.2\" r=\"48\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"474.0\" y=\"265.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">Anti-competitive<\/text>\n<circle cx=\"388.6\" cy=\"367.4\" r=\"48\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"388.6\" y=\"372.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">Coercive<\/text>\n<circle cx=\"251.4\" cy=\"367.4\" r=\"48\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"251.4\" y=\"363.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Conflict of<\/text>\n<text x=\"251.4\" y=\"379.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Interest<\/text>\n<circle cx=\"166.0\" cy=\"260.2\" r=\"48\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2.5\"\/>\n<text x=\"166.0\" y=\"256.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Undue<\/text>\n<text x=\"166.0\" y=\"272.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Advantage<\/text>\n<circle cx=\"196.5\" cy=\"126.5\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"196.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Obstructive<\/text>\n<\/svg>\n <div class=\"fig-cap\">Voluntary disclosure of a <strong>conflict of interest<\/strong> or a past transgression does not mean automatic disqualification \u2014 the procuring entity may evaluate it and take mitigation steps.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal red\">\n <li><strong>Corrupt practice<\/strong> \u2014 offering, giving or accepting any gratification, gift or reward to influence an official act.<\/li>\n <li><strong>Fraudulent practice<\/strong> \u2014 any misrepresentation or omission of facts to influence a process or contract.<\/li>\n <li><strong>Anti-competitive practice<\/strong> \u2014 collusion, bid-rigging or any arrangement among bidders under the Competition Act, 2002.<\/li>\n <li><strong>Coercive practice<\/strong> \u2014 harming or threatening persons or property to influence participation or conduct.<\/li>\n <li><strong>Conflict of interest<\/strong> \u2014 a bidder's interest that conflicts with fair performance of the contract.<\/li>\n <li><strong>Undue advantage<\/strong> \u2014 taking improper benefit of leaked or privileged information.<\/li>\n <li><strong>Obstructive practice<\/strong> \u2014 concealing or destroying evidence, or impeding an inquiry, inspection or audit.<\/li>\n <\/ol>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Proactive disclosures a bidder must make<\/div>\n <ul class=\"note-list slate\">\n <li><span class=\"nl-tag\">COI<\/span><span class=\"nl-text\">Suo-moto declare any <strong>conflict of interest<\/strong>, pre-existing or arising at any stage of the process or contract execution.<\/span><\/li>\n <li><span class=\"nl-tag\">3 YRS<\/span><span class=\"nl-text\">Declare any <strong>previous transgressions<\/strong> of the code with any entity in any country in the last <strong>three years<\/strong>, or any debarment by another procuring entity.<\/span><\/li>\n <li><span class=\"nl-tag\">AGENTS<\/span><span class=\"nl-text\">Disclose any <strong>commissions or fees<\/strong> paid (or to be paid) to agents\/representatives \u2014 name, address, amount, currency and purpose.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"compare-intro\"><strong>Punitive provisions<\/strong> escalate with how far the contract has progressed:<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:34%\"><col style=\"width:66%\"><\/colgroup>\n <thead><tr><th>Stage<\/th><th>Measures the procuring entity may take<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Bid under consideration<\/td><td>Forfeiture\/encashment of <strong>bid security<\/strong>; calling off pre-contract negotiations; <strong>rejection and exclusion<\/strong> from the process.<\/td><\/tr>\n <tr><td class=\"label-cell\">Contract already awarded<\/td><td><strong>Cancellation<\/strong> and recovery of loss; forfeiture of other security\/bond; recovery of payments (incl. advances) with interest.<\/td><\/tr>\n <tr><td class=\"label-cell\">In addition<\/td><td>Removal from the registered list \/ <strong>debarment for not less than six months<\/strong>; anti-competitive practice reported to the <strong>Competition Commission of India<\/strong> (by a Joint-Secretary-level officer); disciplinary or criminal proceedings.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-pact\">\n <span class=\"section-badge teal\">\u00a7 3.3<\/span>\n <h3>Integrity Pact<\/h3>\n <\/div>\n\n <p>The <strong>Pre-bid Integrity Pact<\/strong> binds both buyer and sellers to ethical conduct and transparency across the whole contract \u2014 removing a bidder's fear that, while it abjures bribery, a competitor may bribe and win. Ministries incorporate it (with the Minister-in-charge's approval) for procurements above a chosen threshold.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">80\u201390%<\/div><div class=\"st-cap\">By value, the Integrity Pact threshold should cover the <strong>bulk of annual procurement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">PSBs \u00b7 PSICs \u00b7 FIs<\/div><div class=\"st-cap\">Per CVC's revised SOP, these must also adopt the Integrity Pact<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">IEM<\/div><div class=\"st-cap\">Independent External Monitors appointed by CVC oversee the Pact<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-grievance\">\n <span class=\"section-badge purple\">\u00a7 3.4<\/span>\n <h3>Grievances and their redressal<\/h3>\n <\/div>\n\n <p>Tender documents must carry a grievance-redressal clause. Only a <strong>directly affected bidder<\/strong> who participated in the relevant stage can represent \u2014 and only on the stage they qualified in.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Grievance-redressal timeline (3.4)<\/div>\n <svg viewBox=\"0 0 660 150\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Grievance redressal timeline\">\n<defs><marker id=\"tl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<line x1=\"110\" y1=\"80\" x2=\"598\" y2=\"80\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#tl)\"\/>\n<circle cx=\"130\" cy=\"80\" r=\"15\" fill=\"#10243f\"\/>\n<text x=\"130\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#10243f\">Day 0<\/text>\n<text x=\"130\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">decision<\/text>\n<circle cx=\"330\" cy=\"80\" r=\"15\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">5 days<\/text>\n<text x=\"330\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">seek review<\/text>\n<circle cx=\"520\" cy=\"80\" r=\"15\" fill=\"#0e8f7a\"\/>\n<text x=\"520\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">30 days<\/text>\n<text x=\"520\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">redress & close<\/text>\n<\/svg>\n <div class=\"fig-cap\">This route is <strong>in addition to<\/strong> complaints to the organisation's vigilance department.<\/div>\n <\/div>\n\n <p>Several decisions are taken in good faith under internal guidelines and are <strong>not open to review<\/strong>: the determination of need; the choice of mode of procurement or tendering system; the choice of selection procedure; specifications (except where vague or too restrictive); participation limits and purchase-preference under Government policy; the decision to negotiate with L1; and cancellation of the process (unless it will be re-tendered). Contract-ambiguity issues must be raised <strong>before<\/strong> the contract is signed.<\/p>\n\n <div class=\"section-heading-block\" id=\"c3-conduct\">\n <span class=\"section-badge amber\">\u00a7 3.5<\/span>\n <h3>Conduct of public servants \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>Hospitality<\/strong> from suppliers beyond laid-down limits.<\/td><td>Decline; record and report hospitality; follow conduct-rule limits.<\/td><\/tr>\n <tr><td><strong>Gifts<\/strong> from suppliers tending to influence decisions.<\/td><td>Refuse gifts beyond permissible value; disclose under conduct rules.<\/td><\/tr>\n <tr><td><strong>Private purchases<\/strong> from official suppliers at concessional terms.<\/td><td>Avoid private dealings with firms one deals with officially.<\/td><\/tr>\n <tr><td><strong>Sponsorship<\/strong> of events by prospective suppliers.<\/td><td>Avoid accepting sponsorship that could compromise impartiality.<\/td><\/tr>\n <tr><td><strong>Conflict of interest<\/strong> \u2014 officers related to or financially linked with a bidder.<\/td><td>Declare relationships; exclude conflicted officers from need-determination, tender-document and evaluation roles.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-register\">\n <span class=\"section-badge blue\">\u00a7 3.6<\/span>\n <h3>Registration, empanelment & pre-qualification<\/h3>\n <\/div>\n\n <p>These three shortlisting devices differ in rigour and purpose (<strong>Rule 150, GFR 2017<\/strong>):<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Identity<\/div><div class=\"cat-title\">Registration<\/div><p>Establishes <strong>genuine identification<\/strong> of a firm (e.g. for e-procurement); based on less-rigorous checks of capability and past experience.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Capability<\/div><div class=\"cat-title\">Empanelment<\/div><p>Establishes <strong>prima-facie capability<\/strong> for restricted tendering \u2014 not open tendering.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Per tender<\/div><div class=\"cat-title\">Pre-qualification<\/div><p>Rigorous, tender-specific shortlisting through <strong>wide publicity<\/strong> where the requirement dictates strong qualification criteria.<\/p><\/div>\n <\/div>\n\n <p>Registration is granted for specific trade groups, valid <strong>one to three years<\/strong> (provisional until the firm satisfactorily executes one order), with a unique registration number and EMD exemption within prescribed monetary limits. Registration grades by order value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\" style=\"--x:1\"><div class=\"st-num\">Grade A<\/div><div class=\"st-cap\">Orders <strong>Rs 25 lakh and above<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Grade B<\/div><div class=\"st-cap\"><strong>Rs 5 lakh \u2013 Rs 25 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Grade C<\/div><div class=\"st-cap\"><strong>Rs 1 lakh \u2013 Rs 5 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">3 \/ 6<\/div><div class=\"st-cap\">Removed if no response to <strong>3 tenders\/yr<\/strong> despite <strong>6 invitations<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-debar\">\n <span class=\"section-badge red\">\u00a7 3.7<\/span>\n <h3>Debarment of suppliers<\/h3>\n <\/div>\n\n <p>Eligibility to bid depends on integrity and performance. Debarment (\"banning\", \"suspension\", \"black-listing\" all mean the same) follows two tracks under the GFR and the PPD guidelines \u2014 always after a <strong>reasonable opportunity to represent<\/strong>:<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:40%\"><col style=\"width:36%\"><\/colgroup>\n <thead><tr><th>Trigger<\/th><th>Ground<\/th><th>Period<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Conviction (Rule 151)<\/td><td>Convicted under the <strong>Prevention of Corruption Act, 1988<\/strong> or IPC for loss of life\/property in a procurement contract.<\/td><td>Debarred up to <strong>3 years<\/strong> from the date of debarment.<\/td><\/tr>\n <tr><td class=\"label-cell\">Single Ministry\/Dept<\/td><td>Transgression warranting debarment within one Ministry's jurisdiction.<\/td><td>Up to <strong>2 years<\/strong>; effective from upload to the website.<\/td><\/tr>\n <tr><td class=\"label-cell\">Across all Ministries<\/td><td>Serious cases referred to \/ acted on by DoE.<\/td><td>Up to <strong>3 years<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile red\"><div class=\"st-num\">12 weeks<\/div><div class=\"st-cap\">Target time from zero-day to start of the <strong>debarment period<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Executive<\/div><div class=\"st-cap\">Debarment is an executive function \u2014 <strong>not<\/strong> allocated to Vigilance<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">GeM \u00b7 2 yrs<\/div><div class=\"st-cap\">GeM may debar bidders for up to <strong>2 years<\/strong> on its portal<\/div><\/div>\n <\/div>\n\n <p>Indian agents who wish to quote directly on behalf of foreign principals may be <strong>enlisted<\/strong> by Ministries\/Departments where required (<strong>Rule 152, GFR 2017<\/strong>) \u2014 section 3.8.<\/p>\n\n \n <div class=\"ix\" id=\"quiz3\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 3 Quiz \u2014 integrity, grievances & debarment<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 3. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage3\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c3-recap\">\n <div class=\"recap-title\">⚡ Chapter 3 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>SRM functions<\/td><td>CIPP compliance \u00b7 removal\/debarment \u00b7 new-source development<\/td><\/tr>\n <tr><td>Code of Integrity<\/td><td><strong>Rule 175, GFR 2017<\/strong>; seven prohibited practices<\/td><\/tr>\n <tr><td>Prohibited practices<\/td><td>Corrupt \u00b7 Fraudulent \u00b7 Anti-competitive \u00b7 Coercive \u00b7 COI \u00b7 Undue Advantage \u00b7 Obstructive<\/td><\/tr>\n <tr><td>Transgression disclosure<\/td><td>Last <strong>3 years<\/strong>, any entity\/country<\/td><\/tr>\n <tr><td>CIPP min. debarment<\/td><td><strong>Not less than 6 months<\/strong><\/td><\/tr>\n <tr><td>Integrity Pact coverage<\/td><td><strong>80\u201390%<\/strong> of annual procurement by value<\/td><\/tr>\n <tr><td>Grievance \u2014 review<\/td><td>Within <strong>5 days<\/strong>; post-award close within <strong>30 days<\/strong><\/td><\/tr>\n <tr><td>Registration rule<\/td><td><strong>Rule 150<\/strong>; valid <strong>1\u20133 years<\/strong>; Grades A\/B\/C<\/td><\/tr>\n <tr><td>Debarment \u2014 conviction<\/td><td><strong>Rule 151<\/strong>; up to <strong>3 years<\/strong><\/td><\/tr>\n <tr><td>Debarment \u2014 Ministry \/ DoE<\/td><td><strong>2 years<\/strong> (single) \/ <strong>3 years<\/strong> (across all)<\/td><\/tr>\n <tr><td>Indian agents<\/td><td>Enlisted under <strong>Rule 152<\/strong><\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch4\" data-chapter=\"4\">\n\n <div class=\"chapter-heading-block\" id=\"c4-modes\">\n <span class=\"chapter-badge\">CH 4 \u00b7 MODES & TENDERING<\/span>\n <h2>Modes of Procurement & Tendering Systems<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Choosing how to buy (4.1)<\/div>\n <div class=\"def-text\">\n Offers must be invited by a procedure that balances the <strong>widest competition<\/strong> against the complexity, time, effort and cost of the procedure. Different modes vary the width and specificity of the bidder catchment to suit the situation \u2014 the mode of procurement is the <strong>\"Right Source\"<\/strong> of the Five R's. Powers to approve each mode are delegated through the DFPR and each entity's Schedule of Procurement Powers (SoPP).\n <\/div>\n <\/div>\n\n <p>All modes fall into five families, arranged from the widest competition to single source:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Advertised<\/strong> (Rule 161) \u2014 OTE, GTE, Rate Contract and electronic Reverse Auction.<\/li>\n <li><strong>Pre-Qualification<\/strong> \u2014 Pre-Qualification Bidding and the Approved Vendor List.<\/li>\n <li><strong>Restricted<\/strong> (Rule 162) \u2014 Limited Tender (LTE) and Special LTE.<\/li>\n <li><strong>Nomination<\/strong> (Rule 166) \u2014 Proprietary Article Certificate (PAC) and Single Tender Enquiry \u2014 single source.<\/li>\n <li><strong>Shopping<\/strong> (Rules 154\u2013155) \u2014 direct purchase and the Purchase Committee.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The five families of procurement mode (4.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Spectrum of procurement modes from widest competition to single source\">\n<defs><marker id=\"sp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#sp)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">WIDEST COMPETITION<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">SINGLE SOURCE<\/text>\n<rect x=\"26.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#1c5da6\"\/>\n<text x=\"86.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">ADVERTISED<\/text>\n<text x=\"86.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 161<\/text>\n<rect x=\"158.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#0e8f7a\"\/>\n<text x=\"218.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">PRE-QUAL<\/text>\n<text x=\"218.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">shortlist<\/text>\n<rect x=\"290.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c97c10\"\/>\n<text x=\"350.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">RESTRICTED<\/text>\n<text x=\"350.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 162<\/text>\n<rect x=\"422.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#7e3eb5\"\/>\n<text x=\"482.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">NOMINATION<\/text>\n<text x=\"482.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 166<\/text>\n<rect x=\"554.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c0392b\"\/>\n<text x=\"614.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">SHOPPING<\/text>\n<text x=\"614.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 154\/155<\/text>\n<\/svg>\n <div class=\"fig-cap\">Advertised modes seek the widest competition through wide publicity; nomination and shopping modes sit at the single-source end for special or small-value needs.<\/div>\n <\/div>\n\n <p>For routine goods, the mode is driven largely by <strong>value<\/strong>. The thresholds form a ladder from petty purchase to open tender:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Value thresholds \u2192 mode of procurement<\/div>\n <svg viewBox=\"0 0 660 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Value threshold ladder mapping procurement value to mode\">\n<defs><marker id=\"up\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"300\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up)\"\/>\n<text x=\"24\" y=\"165\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 165)\">higher value<\/text>\n<rect x=\"62\" y=\"30\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#1c5da6\"\/>\n<text x=\"84\" y=\"57\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Above Rs 50 lakh<\/text>\n<text x=\"84\" y=\"78\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Open Tender (OTE) \u2014 default<\/text>\n<text x=\"624\" y=\"57\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#1c5da6\">Rule 161<\/text>\n<rect x=\"62\" y=\"102\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"102\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"129\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Up to Rs 50 lakh<\/text>\n<text x=\"84\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender (LTE)<\/text>\n<text x=\"624\" y=\"129\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">Rule 162<\/text>\n<rect x=\"62\" y=\"174\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"174\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"201\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Rs 50k \u2013 Rs 5 lakh<\/text>\n<text x=\"84\" y=\"222\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Purchase Committee<\/text>\n<text x=\"624\" y=\"201\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">Rule 155<\/text>\n<rect x=\"62\" y=\"246\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"246\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#41617f\"\/>\n<text x=\"84\" y=\"273\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#41617f\">Up to Rs 50,000<\/text>\n<text x=\"84\" y=\"294\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Direct (petty) purchase<\/text>\n<text x=\"624\" y=\"273\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#41617f\">Rule 154<\/text>\n<\/svg>\n <div class=\"fig-cap\">Scientific Ministries\/Departments enjoy enhanced limits \u2014 petty purchase up to <strong>Rs 1 lakh<\/strong> and Purchase Committee up to <strong>Rs 10 lakh<\/strong>. A requirement must never be split to dodge a threshold.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-advertised\">\n <span class=\"section-badge blue\">\u00a7 4.2–4.5<\/span>\n <h3>Advertised modes \u2014 OTE, GTE, Rate Contract & eRA<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:20%\"><col style=\"width:30%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>When used<\/th><th>Key features<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Open Tender Enquiry (OTE)<\/td><td>Procurements <strong>above Rs 50 lakh<\/strong>; the <strong>default mode<\/strong> (Rule 161).<\/td><td>Widest competition; NIT on <strong>GeM & CPPP<\/strong>; no prior registration insisted; tender documents <strong>free to download<\/strong>; best VfM but relatively complex.<\/td><\/tr>\n <tr><td class=\"label-cell\">Global Tender Enquiry (GTE)<\/td><td>When foreign sourcing is needed.<\/td><td><strong>No GTE up to Rs 200 crore<\/strong> without approval of the DoE-designated competent authority; foreign bidders may quote in foreign currency; e-procurement not mandatorily insisted.<\/td><\/tr>\n <tr><td class=\"label-cell\">Rate Contract \/ Framework Agreement<\/td><td>Common, repetitively-used items of standard specification.<\/td><td>Agreement on <strong>rate<\/strong>; <strong>no quantity<\/strong> mentioned or guaranteed; either party may withdraw on notice; supply orders placed during validity.<\/td><\/tr>\n <tr><td class=\"label-cell\">Electronic Reverse Auction (eRA)<\/td><td>Dynamic price discovery where specifications are firm.<\/td><td>Bidders compete by <strong>lowering prices<\/strong> in real time; available on GeM.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c4-restricted\">\n <span class=\"section-badge amber\">\u00a7 4.6–4.9<\/span>\n <h3>Pre-qualification & restricted modes<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">4.6 \/ 4.7<\/div><div class=\"cat-title\">PQB & Approved Vendor List<\/div><p><strong>Pre-Qualification Bidding<\/strong> shortlists capable bidders through wide publicity; an <strong>Approved Vendor List (AVL)<\/strong> holds vendors qualified for repeated draw-down. Both restrict bidding to qualified bidders.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">4.8 \/ 4.9<\/div><div class=\"cat-title\">LTE & SLTE<\/div><p><strong>Limited Tender Enquiry (LTE)<\/strong> \u2014 up to <strong>Rs 50 lakh<\/strong> (Rule 162), sent to <strong>more than three<\/strong> registered vendors and also published. <strong>Special LTE (SLTE)<\/strong> \u2014 above Rs 50 lakh in <strong>exceptional<\/strong> circumstances.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-nomination\">\n <span class=\"section-badge purple\">\u00a7 4.10–4.13<\/span>\n <h3>Nomination & shopping modes<\/h3>\n <\/div>\n\n <p>Where competition is impossible or uneconomic, procurement is from a single source or by simple shopping (Rules 154, 155, 166):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:26%\"><col style=\"width:36%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>Basis<\/th><th>Limit \/ note<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">PAC procurement<\/td><td>Proprietary Article Certificate \u2014 item available only from a named OEM\/proprietor or its authorised dealer.<\/td><td>Single source; the shortest route but needs a signed PAC (Rule 166).<\/td><\/tr>\n <tr><td class=\"label-cell\">STE without PAC<\/td><td>Single Tender Enquiry \u2014 one firm only, where a PAC cannot be certified.<\/td><td>More restricted powers than PAC.<\/td><\/tr>\n <tr><td class=\"label-cell\">Direct without quotation<\/td><td>Petty purchase of off-the-shelf, standard goods.<\/td><td>Up to <strong>Rs 50,000<\/strong> per case (Rule 154); <strong>Rs 1 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <tr><td class=\"label-cell\">Purchase Committee<\/td><td>Local committee of <strong>three members<\/strong> records a certificate.<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong> (Rule 155); <strong>Rs 10 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For any procurement outside GeM under the shopping modes, the buyer must first generate a <strong>\"GeM Availability Report & Past Transaction Summary\" (GeMAR&PTS)<\/strong> with a unique ID on the GeM portal.<\/p>\n\n <div class=\"section-heading-block\" id=\"c4-tendering\">\n <span class=\"section-badge teal\">\u00a7 4.14–4.16<\/span>\n <h3>Tendering systems \u2014 single-stage vs two-stage<\/h3>\n <\/div>\n\n <div class=\"flow teal\">\n <div class=\"flow-step\"><div class=\"fs-num\">SINGLE STAGE<\/div><div class=\"fs-title\">One call<\/div><div class=\"fs-text\">A single tender with fully-defined specifications; bids invited, evaluated and awarded in one round.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 1 (EoI)<\/div><div class=\"fs-title\">Expression of Interest<\/div><div class=\"fs-text\">Where the solution is not pre-definable, an <strong>EoI<\/strong> first explores the market and refines specifications.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 2<\/div><div class=\"fs-title\">Detailed tender<\/div><div class=\"fs-text\">A detailed tender follows. A <strong>\"non-committal EoI\"<\/strong> (open to non-shortlisted bidders too) should be rare and carry no bid security.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-channels\">\n <span class=\"section-badge slate\">\u00a7 4.17<\/span>\n <h3>Channels of procurement & direct purchase on GeM<\/h3>\n <\/div>\n\n <p>Procurement runs through manual bids, e-procurement platforms or GeM \u2014 but receiving bids through <strong>e-procurement portals is mandatory<\/strong> (mixing electronic and manual bids is poor practice). On GeM, the direct-purchase route depends on value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">\u2264 Rs 50,000<\/div><div class=\"st-cap\">Any supplier on GeM <strong>meeting the requirement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rs 50k \u2013 Rs 10 L<\/div><div class=\"st-cap\">GeM seller with the <strong>lowest price<\/strong> among \u2265 3 different manufacturers<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">> Rs 10 lakh<\/div><div class=\"st-cap\">Through GeM <strong>bidding \/ reverse auction<\/strong><\/div><\/div>\n <\/div>\n\n <p>Where an item is available on GeM, it cannot be bought of the same specification outside GeM (subject to the GeMAR&PTS check).<\/p>\n\n \n <div class=\"ix\" id=\"quiz4\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 4 Quiz \u2014 modes, thresholds & channels<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 4. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage4\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c4-recap\">\n <div class=\"recap-title\">⚡ Chapter 4 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Mode = which R?<\/td><td>The <strong>\"Right Source\"<\/strong> of the Five R's<\/td><\/tr>\n <tr><td>Five families<\/td><td>Advertised \u00b7 Pre-Qualification \u00b7 Restricted \u00b7 Nomination \u00b7 Shopping<\/td><\/tr>\n <tr><td>Default mode<\/td><td><strong>Open Tender Enquiry<\/strong> (OTE), above Rs 50 lakh \u2014 Rule 161<\/td><\/tr>\n <tr><td>GTE restriction<\/td><td>No GTE <strong>up to Rs 200 crore<\/strong> without DoE-designated approval<\/td><\/tr>\n <tr><td>Rate Contract<\/td><td><strong>No quantity<\/strong> guaranteed; agreement on rate<\/td><\/tr>\n <tr><td>LTE<\/td><td>Up to <strong>Rs 50 lakh<\/strong>; <strong>> 3<\/strong> vendors \u2014 Rule 162<\/td><\/tr>\n <tr><td>SLTE<\/td><td>Above Rs 50 lakh, <strong>exceptional<\/strong> circumstances<\/td><\/tr>\n <tr><td>Nomination modes<\/td><td><strong>PAC<\/strong> & <strong>STE<\/strong> (single source) \u2014 Rule 166<\/td><\/tr>\n <tr><td>Direct (petty)<\/td><td>\u2264 <strong>Rs 50,000<\/strong>\/case \u2014 Rule 154<\/td><\/tr>\n <tr><td>Purchase Committee<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong>, 3 members \u2014 Rule 155<\/td><\/tr>\n <tr><td>GeM direct purchase<\/td><td>\u226450k any seller \u00b7 50k\u201310L lowest of \u22653 mfrs \u00b7 >10L bidding\/RA<\/td><\/tr>\n <tr><td>Bid channel<\/td><td><strong>e-procurement mandatory<\/strong>; no mixing with manual bids<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch5\" data-chapter=\"5\">\n\n <div class=\"chapter-heading-block\" id=\"c5-tdoc\">\n <span class=\"chapter-badge\">CH 5 \u00b7 BID INVITATION<\/span>\n <h2>Bid Invitation Process<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The tender document (5.1)<\/div>\n <div class=\"def-text\">\n The tender document is the <strong>fundamental document<\/strong> of public procurement \u2014 after award it becomes part of the contract. Clauses must be clear, self-contained and unambiguous to avoid disputes, delays and quality compromises. The Department of Expenditure has issued <strong>Model Tender Documents (MTDs)<\/strong> \u2014 Goods and Non-Consultancy Services (October 2021) and Consultancy Services (April 2023) \u2014 which entities customise for each procurement. A bid quoting <strong>NIL charges<\/strong> is treated as unresponsive.\n <\/div>\n <\/div>\n\n <p>Under Rule 168 a tender document is built from eight ordered sections, followed by the financial bid and the forms:<\/p>\n <ol class=\"parts-list roman blue\">\n <li>Notice Inviting Tender (NIT) and the Tender Information Sheet.<\/li>\n <li>Instructions to Bidders (ITB).<\/li>\n <li>Appendix to ITB (AITB).<\/li>\n <li>General Conditions of Contract (GCC).<\/li>\n <li>Special Conditions of Contract (SCC).<\/li>\n <li>Schedule of Requirements.<\/li>\n <li>Technical Specifications and Quality Assurance.<\/li>\n <li>Qualification and Evaluation Criteria.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">Anatomy of a tender document (Rule 168) \u2014 5.1.3<\/div>\n <svg viewBox=\"0 0 660 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"The eight sections of a tender document\">\n<rect x=\"70\" y=\"20\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"20\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"20\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"43.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">I<\/text>\n<text x=\"130\" y=\"43.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Notice Inviting Tender (NIT)<\/text>\n<rect x=\"70\" y=\"63\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"63\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"63\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"86.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">II<\/text>\n<text x=\"130\" y=\"86.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Instructions to Bidders (ITB)<\/text>\n<rect x=\"70\" y=\"106\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\" opacity=\"0.12\" stroke=\"#2d8ecf\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"106\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\"\/>\n<rect x=\"104\" y=\"106\" width=\"14\" height=\"36\" fill=\"#2d8ecf\"\/>\n<text x=\"93\" y=\"129.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">III<\/text>\n<text x=\"130\" y=\"129.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Appendix to ITB (AITB)<\/text>\n<rect x=\"70\" y=\"149\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"149\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"149\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"172.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">IV<\/text>\n<text x=\"130\" y=\"172.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">General Conditions (GCC)<\/text>\n<rect x=\"70\" y=\"192\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"192\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"192\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"215.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">V<\/text>\n<text x=\"130\" y=\"215.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Special Conditions (SCC)<\/text>\n<rect x=\"70\" y=\"235\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"235\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"235\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"258.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VI<\/text>\n<text x=\"130\" y=\"258.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Schedule of Requirements<\/text>\n<rect x=\"70\" y=\"278\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"278\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"278\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"301.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VII<\/text>\n<text x=\"130\" y=\"301.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Technical Specs & QA<\/text>\n<rect x=\"70\" y=\"321\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"321\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\"\/>\n<rect x=\"104\" y=\"321\" width=\"14\" height=\"36\" fill=\"#7e3eb5\"\/>\n<text x=\"93\" y=\"344.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VIII<\/text>\n<text x=\"130\" y=\"344.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Qualification & Evaluation<\/text>\n<\/svg>\n <div class=\"fig-cap\">ITB covers everything up to the announcement of award; <strong>GCC<\/strong> covers everything after award to contract closure. Exceptional changes go into the <strong>AITB<\/strong> and <strong>SCC<\/strong>, which supersede the standing ITB\/GCC.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-filters\">\n <span class=\"section-badge teal\">\u00a7 5.1.3<\/span>\n <h3>Three filters \u2014 eligibility, qualification & evaluation<\/h3>\n <\/div>\n\n <p>The criteria in the tender document act as <strong>three successive filters<\/strong>, each narrowing the field; no criterion that cannot be verified may be used, and any criterion not stated in the tender cannot later be applied.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How the criteria narrow the field<\/div>\n <svg viewBox=\"0 0 640 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Three filters narrowing bidders to the awarded bidder\">\n<polygon points=\"70,28 570,28 520,80 120,80\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"59.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">All bids<\/text>\n<polygon points=\"120,92 520,92 470,144 170,144\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"123.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Eligibility<\/text>\n<polygon points=\"170,156 470,156 415,208 225,208\" fill=\"#0e8f7a\" opacity=\"0.16\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"187.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Qualification<\/text>\n<polygon points=\"225,220 415,220 360,272 280,272\" fill=\"#7e3eb5\" opacity=\"0.16\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"251.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Evaluation<\/text>\n<rect x=\"250\" y=\"276\" width=\"140\" height=\"20\" rx=\"6\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"290\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"800\" fill=\"#ffd95a\">AWARD<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Eligibility<\/strong> decides who may participate; <strong>qualification<\/strong> tests capability to perform; <strong>evaluation<\/strong> picks the most advantageous bid (beyond price, criteria may include quality, life-cycle\/running cost, after-sales service and delivery period).<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">3 weeks<\/div><div class=\"st-cap\">Minimum time normally allowed for bidders to prepare<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4 weeks<\/div><div class=\"st-cap\">Where <strong>international<\/strong> participation is contemplated<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">90 days<\/div><div class=\"st-cap\">Default <strong>bid validity<\/strong> if not otherwise specified<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">NIL = void<\/div><div class=\"st-cap\">A bid quoting NIL charges is <strong>unresponsive<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-publish\">\n <span class=\"section-badge purple\">\u00a7 5.2<\/span>\n <h3>Publication, pre-bid conference & submission<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Publish<\/div><div class=\"cat-title\">GeM & CPPP<\/div><p>NIT and the full tender document are published on <strong>GeM and GeM-CPPP<\/strong> (and the entity's own website); documents are <strong>free to download<\/strong>; time-stamped audit trails are kept. A limited-tender NIT carries a note that it is for information only and participation is by invitation.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Clarify<\/div><div class=\"cat-title\">Pre-bid conference<\/div><p>For <strong>turnkey or sophisticated, costly<\/strong> equipment, one or more pre-bid conferences (or online) clarify the tender; resulting <strong>corrigenda\/clarifications<\/strong> are issued with mandatory timelines and published.<\/p><\/div>\n <\/div>\n\n <p>Bids are uploaded by the deadline (server clock is the reference); <strong>no manual bids<\/strong> are accepted in e-procurement. A bid valid for a shorter period than required is rejected as non-responsive. Bid security (or a permitted Bid Securing Declaration) must accompany the bid.<\/p>\n\n <div class=\"section-heading-block\" id=\"c5-open\">\n <span class=\"section-badge slate\">\u00a7 5.3<\/span>\n <h3>Opening of bids<\/h3>\n <\/div>\n\n <div class=\"flow\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Open publicly<\/div><div class=\"fs-text\">The Bid Opening Committee (BOC) opens bids immediately after the deadline, before attending bidders' representatives (who carry a letter of authority).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Number & initial<\/div><div class=\"fs-text\">Each bid is serially numbered and initialled with date\/time; salient features are read out. <strong>Late bids are not considered<\/strong> (Rule 165).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Record<\/div><div class=\"fs-text\">A signed bid-opening report is prepared and handed to the Tender Committee. The BOC <strong>cannot reject<\/strong> any bid at the opening stage.<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz5\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 5 Quiz \u2014 tender documents, criteria & opening<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 5. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage5\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c5-recap\">\n <div class=\"recap-title\">⚡ Chapter 5 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Tender document contents<\/td><td><strong>Rule 168<\/strong>; eight sections (NIT\/TIS \u2192 Qualification & Evaluation)<\/td><\/tr>\n <tr><td>ITB vs GCC<\/td><td>ITB = up to award; GCC = after award; AITB\/SCC override<\/td><\/tr>\n <tr><td>Three filters<\/td><td>Eligibility \u2192 Qualification \u2192 Evaluation<\/td><\/tr>\n <tr><td>Unverifiable criteria<\/td><td>Cannot be used; criteria must be in the tender<\/td><\/tr>\n <tr><td>Minimum bid time<\/td><td><strong>3 weeks<\/strong> (national) \u00b7 <strong>4 weeks<\/strong> (international)<\/td><\/tr>\n <tr><td>Default bid validity<\/td><td><strong>90 days<\/strong><\/td><\/tr>\n <tr><td>NIL quote<\/td><td>Treated as <strong>unresponsive<\/strong><\/td><\/tr>\n <tr><td>Publication<\/td><td><strong>GeM & CPPP<\/strong>; documents free to download<\/td><\/tr>\n <tr><td>Pre-bid conference<\/td><td>For turnkey \/ sophisticated costly equipment<\/td><\/tr>\n <tr><td>Late bids<\/td><td><strong>Not considered<\/strong> (Rule 165); BOC cannot reject at opening<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch6\" data-chapter=\"6\">\n\n <div class=\"chapter-heading-block\" id=\"c6-sec\">\n <span class=\"chapter-badge\">CH 6 \u00b7 SECURITIES & PRICES<\/span>\n <h2>Forms of Securities, Prices, Payment Terms & Price Variations<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Why securities exist (6.1)<\/div>\n <div class=\"def-text\">\n Securities protect the procuring entity at two points: a <strong>Bid Security (EMD)<\/strong> guards against a bidder withdrawing or altering its bid during validity; a <strong>Performance Security<\/strong> guards against non-performance of the contract. For goods, the need for performance security depends on the market and commercial practice. Each form of security applies over a different window of the procurement lifecycle.\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">Securities across the procurement lifecycle (6.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"When each form of security applies across the procurement lifecycle\">\n<line x1=\"60\" y1=\"48\" x2=\"210\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"135.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Bidding<\/text>\n<line x1=\"60\" y1=\"42\" x2=\"60\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"210\" y1=\"48\" x2=\"330\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"270.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Award<\/text>\n<line x1=\"210\" y1=\"42\" x2=\"210\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"330\" y1=\"48\" x2=\"520\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"425.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Execution<\/text>\n<line x1=\"330\" y1=\"42\" x2=\"330\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"520\" y1=\"48\" x2=\"650\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"585.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Warranty<\/text>\n<line x1=\"520\" y1=\"42\" x2=\"520\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"650\" y1=\"42\" x2=\"650\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<rect x=\"60\" y=\"80\" width=\"210\" height=\"34\" rx=\"7\" fill=\"#1c5da6\"\/>\n<text x=\"72\" y=\"102\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Bid Security<\/text>\n<text x=\"260\" y=\"102\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">2\u20135%<\/text>\n<rect x=\"210\" y=\"128\" width=\"370\" height=\"34\" rx=\"7\" fill=\"#0e8f7a\"\/>\n<text x=\"222\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Performance Security<\/text>\n<text x=\"570\" y=\"150\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">3\u20135%<\/text>\n<rect x=\"505\" y=\"176\" width=\"145\" height=\"34\" rx=\"7\" fill=\"#c97c10\"\/>\n<text x=\"517\" y=\"198\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Warranty BG<\/text>\n<text x=\"640\" y=\"198\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">10%<\/text>\n<\/svg>\n <div class=\"fig-cap\">Bid Security may be a demand draft, banker's cheque, bank guarantee, insurance surety bond or online payment; above <strong>Rs 5 lakh<\/strong> (and for foreign GTE bidders) it must be a <strong>bank guarantee<\/strong>. In goods, retaining performance security from running bills is <strong>not<\/strong> acceptable.<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">2\u20135%<\/div><div class=\"st-cap\"><strong>Bid Security \/ EMD<\/strong> of estimated value (Rule 170)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">3\u20135%<\/div><div class=\"st-cap\"><strong>Performance Security<\/strong> of contract value (3\u201310% for Works) \u2014 Rule 171<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">10%<\/div><div class=\"st-cap\"><strong>Warranty BG<\/strong> on capital equipment, valid 60 days beyond warranty<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">\u2264 Rs 50 L<\/div><div class=\"st-cap\"><strong>No Performance Security<\/strong> needed up to this tender value<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">14\u201328 days<\/div><div class=\"st-cap\">Performance Security furnished after award notification<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">30 days<\/div><div class=\"st-cap\">Bid Security returned to unsuccessful bidders by 30th day after award<\/div><\/div>\n <\/div>\n\n <p>A <strong>Bid Securing Declaration (BSD)<\/strong> may replace bid security (with CA approval): withdrawing\/modifying the bid, or failing to furnish performance security or sign the contract, is treated as a breach of the Code of Integrity and the bidder is suspended. <strong>MSEs and DPIIT-recognised start-ups are exempt from EMD.<\/strong><\/p>\n\n <div class=\"section-heading-block\" id=\"c6-isb\">\n <span class=\"section-badge teal\">\u00a7 6.1.3–6.1.4<\/span>\n <h3>Insurance Surety Bond & the electronic bank guarantee<\/h3>\n <\/div>\n\n <p>An <strong>Insurance Surety Bond (ISB)<\/strong> is a three-cornered assurance: the <strong>principal<\/strong> (the contractor\/supplier) obtains the bond from a <strong>surety insurer<\/strong> (an insurance company), which assures performance to the <strong>beneficiary<\/strong> (the procuring entity). It is premium-based and needs no collateral; if the principal does not pay within 14 days of a valid claim, the surety pays the beneficiary within 45 calendar days.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">The Insurance Surety Bond \u2014 a three-party assurance<\/div>\n <svg viewBox=\"0 0 640 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Insurance Surety Bond three-party relationship\">\n<line x1=\"320\" y1=\"47\" x2=\"422\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"422\" y1=\"224\" x2=\"218\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"218\" y1=\"224\" x2=\"320\" y2=\"47\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<circle cx=\"320\" cy=\"47\" r=\"56\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"320\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">PRINCIPAL<\/text>\n<circle cx=\"422\" cy=\"224\" r=\"56\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"422\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">SURETY<\/text>\n<text x=\"422\" y=\"236\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">INSURER<\/text>\n<circle cx=\"218\" cy=\"224\" r=\"56\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"218\" y=\"229\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">BENEFICIARY<\/text>\n<\/svg>\n <div class=\"fig-cap\">An <strong>electronic Bank Guarantee (e-BG)<\/strong> is a dematerialised BG processed on the <strong>NeSL<\/strong> portal (24\/7); verification with NeSL is sufficient and verification with the issuing bank is not required.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c6-advance\">\n <span class=\"section-badge amber\">\u00a7 6.5<\/span>\n <h3>Advance payments<\/h3>\n <\/div>\n\n <p>Ordinarily payment follows supply; advance payment is exceptional \u2014 justified where a contractor must sink substantial funds before payment falls due, given the Government's lower cost of funds. It is anticipated at the planning stage and declared in the tender document.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">40%<\/div><div class=\"st-cap\">Ceiling of advance to a <strong>State \/ Central Government agency or PSE<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">110%<\/div><div class=\"st-cap\">Bank guarantee (or e-BG) to secure an advance \u2014 at least 110% of it<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2265 2<\/div><div class=\"st-cap\">Advance paid in <strong>at least two instalments<\/strong>; recovered against milestones<\/div><\/div>\n <\/div>\n <p>Advances are normally <strong>interest-free<\/strong> only where the tender so provided; otherwise a suitable interest rate (e.g. the GPF rate) applies. Milestone \/ stage \/ part-payments against proof of dispatch are <strong>not<\/strong> treated as advances (Rule 172(2)).<\/p>\n\n <div class=\"section-heading-block\" id=\"c6-prices\">\n <span class=\"section-badge purple\">\u00a7 6.6–6.7<\/span>\n <h3>Firm vs variable price, and exchange-rate variation<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:22%\"><col style=\"width:39%\"><col style=\"width:39%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Firm & Fixed Price<\/th><th>Variable Price (PVC)<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">When used<\/td><td>Deliveries up to <strong>12 months<\/strong> \u2014 the normal case.<\/td><td>Deliveries <strong>longer than 12 months<\/strong>, where input costs may move materially.<\/td><\/tr>\n <tr><td class=\"label-cell\">Mechanism<\/td><td>Price not subject to variation during the contract.<\/td><td>A <strong>Price Variation Clause<\/strong> adjusts for changes in labour, material and fuel\/power against reliable indices.<\/td><\/tr>\n <tr><td class=\"label-cell\">Safeguards<\/td><td>\u2014<\/td><td>Specify a <strong>base date<\/strong>, a <strong>time-lag<\/strong> and a <strong>ceiling<\/strong>; the entity should give its own PVC formula and base dates.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For contracts with significant foreign-exchange content and a delivery period exceeding one year, an <strong>Exchange Rate Variation (ERV)<\/strong> clause works out variation from a stated base date. Imports are commonly paid through a <strong>Letter of Credit<\/strong> (governed by UCP 600).<\/p>\n\n \n <div class=\"ix\" id=\"quiz6\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 6 Quiz \u2014 securities, advances & prices<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 6. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage6\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c6-recap\">\n <div class=\"recap-title\">⚡ Chapter 6 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Bid Security \/ EMD<\/td><td><strong>2\u20135%<\/strong> of estimated value (Rule 170); valid 45 days beyond bid validity<\/td><\/tr>\n <tr><td>Bid Security form<\/td><td>> <strong>Rs 5 lakh<\/strong> \/ foreign GTE \u2192 bank guarantee<\/td><\/tr>\n <tr><td>EMD exemption<\/td><td><strong>MSEs & DPIIT start-ups<\/strong>; BSD may replace EMD<\/td><\/tr>\n <tr><td>Performance Security<\/td><td><strong>3\u20135%<\/strong> of contract value (Rule 171); 3\u201310% for Works<\/td><\/tr>\n <tr><td>No Performance Security<\/td><td>Up to a tender value of <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Perf. Security validity<\/td><td><strong>60 days<\/strong> beyond all obligations incl. warranty<\/td><\/tr>\n <tr><td>Warranty BG<\/td><td><strong>10%<\/strong> on capital equipment<\/td><\/tr>\n <tr><td>Insurance Surety Bond<\/td><td>3 parties; premium-based, no collateral<\/td><\/tr>\n <tr><td>e-BG<\/td><td>On <strong>NeSL<\/strong>; NeSL verification sufficient<\/td><\/tr>\n <tr><td>Advance to Govt\/PSE<\/td><td>Up to <strong>40%<\/strong>; secured by \u2265110% BG; \u22652 instalments<\/td><\/tr>\n <tr><td>Firm price<\/td><td>Deliveries up to <strong>12 months<\/strong><\/td><\/tr>\n <tr><td>Variable price (PVC)<\/td><td>Deliveries > 12 months; base date, time-lag, ceiling<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch7\" data-chapter=\"7\">\n\n <div class=\"chapter-heading-block\" id=\"c7-eval\">\n <span class=\"chapter-badge\">CH 7 \u00b7 EVALUATION & AWARD<\/span>\n <h2>Bid Evaluation & Award of Contract<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The cardinal rule of evaluation (7.1)<\/div>\n <div class=\"def-text\">\n Bids are evaluated <strong>strictly on the terms of the tender document<\/strong> and the bids themselves \u2014 no hearsay, no undeclared condition, no overlooking or relaxing an essential condition. The aim is that <strong>no bidder gains undue advantage<\/strong> at the cost of others or of the procuring entity, and that a preference does not collapse the field to a single vendor.\n <\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">> Rs 50 L<\/div><div class=\"st-cap\">Above this, a <strong>3-member Tender Committee<\/strong> evaluates (incl. a finance member & user rep)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 173(xxii)<\/div><div class=\"st-cap\">No TC member may <strong>report directly<\/strong> to another, where value > Rs 50 lakh<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2260<\/div><div class=\"st-cap\">The <strong>recommending<\/strong> authority must not also be the <strong>accepting<\/strong> authority<\/div><\/div>\n <\/div>\n\n <p>Below the <strong>direct-acceptance threshold<\/strong> in the SoPP, the competent authority may evaluate directly without a Tender Committee. Above it, the Tender Committee runs the evaluation through successive gates:<\/p>\n\n <p>Evaluation runs through four gates before award: <strong>preliminary examination<\/strong> (responsiveness) \u2192 <strong>qualification<\/strong> (capability) \u2192 <strong>financial evaluation<\/strong> (determining L1) \u2192 <strong>award<\/strong>. Bids found unresponsive or unqualified drop out at the relevant gate.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The bid-evaluation pipeline (7.3–7.6)<\/div>\n <svg viewBox=\"0 0 700 190\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Bid evaluation pipeline\">\n<defs><marker id=\"pp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><marker id=\"dr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#c0392b\"\/><\/marker><\/defs>\n<rect x=\"20\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#41617f\"\/>\n<text x=\"76.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">All bids<\/text>\n<line x1=\"132\" y1=\"66.0\" x2=\"154\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"154\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"210.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Preliminary<\/text>\n<line x1=\"266\" y1=\"66.0\" x2=\"288\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"210.0\" y1=\"92\" x2=\"210.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"210.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unresponsive<\/text>\n<rect x=\"288\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"344.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Qualification<\/text>\n<line x1=\"400\" y1=\"66.0\" x2=\"422\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"344.0\" y1=\"92\" x2=\"344.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"344.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unqualified<\/text>\n<rect x=\"422\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#c97c10\"\/>\n<text x=\"478.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Financial<\/text>\n<line x1=\"534\" y1=\"66.0\" x2=\"556\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"556\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"612.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<\/svg>\n <div class=\"fig-cap\">A comparative statement of quotations is prepared (except up to Rs 50 lakh) and may be vetted by integrated Finance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c7-prelim\">\n <span class=\"section-badge red\">\u00a7 7.3<\/span>\n <h3>Preliminary examination \u2014 responsive vs unresponsive<\/h3>\n <\/div>\n\n <p>Only <strong>substantively responsive<\/strong> bids \u2014 complete and conforming to the tender's essential terms without substantive deviation \u2014 proceed. Among the grounds on which a bid is ignored as <strong>unresponsive<\/strong>:<\/p>\n <ol class=\"parts-list decimal red\">\n <li>Not in the prescribed format, or <strong>unsigned<\/strong> as required.<\/li>\n <li><strong>EMD not provided<\/strong>, or exemption claimed without acceptable proof.<\/li>\n <li>Bidder <strong>not eligible<\/strong> per the eligibility criteria (including conflict of interest \/ CIPP).<\/li>\n <li>Quoted goods of another manufacturer <strong>without the required authority letter<\/strong>.<\/li>\n <li>Departs from <strong>essential requirements<\/strong> (e.g. refuses to give performance security), or has not quoted for the <strong>entire schedule<\/strong>.<\/li>\n <li><strong>Conditional, multiple or alternative<\/strong> bids where not expressly permitted; or bid validity shorter than required.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c7-discrep\">\n <span class=\"section-badge slate\">\u00a7 7.3.2–7.3.4<\/span>\n <h3>Resolving discrepancies & classifying deviations<\/h3>\n <\/div>\n\n <p>Where figures and words (or copies) disagree, fixed rules decide <strong>what prevails<\/strong>:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Unit vs total<\/div><div class=\"cat-title\">Unit price prevails<\/div><p>If unit price × quantity \u2260 the stated total, the <strong>unit price<\/strong> governs and the total is corrected.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Sub-total vs total<\/div><div class=\"cat-title\">Sub-totals prevail<\/div><p>If a grand total mis-adds the sub-totals, the <strong>sub-totals<\/strong> govern and the total is corrected.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Words vs figures<\/div><div class=\"cat-title\">Words prevail<\/div><p>Between an amount in words and in figures, the amount <strong>in words<\/strong> governs. Original prevails over a scanned copy.<\/p><\/div>\n <\/div>\n\n <p class=\"compare-intro\">A <strong>deviation, reservation or omission<\/strong> is either substantive (reject) or minor (may be condoned):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:38%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Type<\/th><th>Substantive deviation \u2192 reject<\/th><th>Minor deviation \u2192 may accept<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Test<\/td><td>Affects scope\/quality\/performance; limits the entity's rights or the bidder's obligations; or its rectification would unfairly affect other bidders' competitive position.<\/td><td>Missing pages, illegibility, fewer copies \u2014 issues with <strong>no fiscal impact<\/strong> that do not change the ranking or grant any undue advantage.<\/td><\/tr>\n <tr><td class=\"label-cell\">Action<\/td><td>Rejected as non-responsive (deviations may be accepted only in STE\/PAC, with reasons recorded).<\/td><td>Bidder asked to clarify by a target date; an evasive\/no reply makes the bid liable to rejection.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c7-award\">\n <span class=\"section-badge purple\">\u00a7 7.6<\/span>\n <h3>Award of contract \u2014 reasonableness, low bids & parallel contracts<\/h3>\n <\/div>\n\n <p>Every Tender Committee recommendation must declare the price <strong>reasonable<\/strong>, judged mainly against the <strong>Last Purchase Price (LPP)<\/strong> updated for quantity, delivery and terms (triangulating more than one method). An <strong>abnormally low bid (ALB)<\/strong> may be probed for the bidder's capability to deliver, and rejected if unconvincing.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">L1<\/div><div class=\"st-cap\">Award goes to the <strong>lowest acceptable bidder<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">70 : 30<\/div><div class=\"st-cap\">Typical split when a <strong>parallel contract<\/strong> divides quantity between two<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u00b1 option<\/div><div class=\"st-cap\">A plus\/minus <strong>option clause<\/strong> adjusts quantity; never in development orders<\/div><\/div>\n <\/div>\n\n <div class=\"callout red\">\n <div class=\"callout-label\">Negotiations (Rule 173(xiv)) \u2014 handle with great care<\/div>\n <p>Price negotiation after bid opening <strong>must be severely discouraged<\/strong> and used only in exceptional, recorded circumstances. When unavoidable, it is conducted <strong>only with L1<\/strong> \u2014 in <strong>no case<\/strong>, including where cartel rates are suspected, may negotiations be extended to other bidders. A counter-offer to L1 amounts to a negotiation; the original offer stays open if the negotiation fails. If L1's price stays unreasonable, the options are re-tender or escalation to a higher level.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz7\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 7 Quiz \u2014 evaluation, deviations & award<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 7. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage7\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c7-recap\">\n <div class=\"recap-title\">⚡ Chapter 7 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Evaluation basis<\/td><td>Strictly the tender document & the bids; no undeclared conditions<\/td><\/tr>\n <tr><td>Tender Committee<\/td><td><strong>3 members<\/strong> (incl. finance + user) above <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Independence<\/td><td><strong>Rule 173(xxii)<\/strong> \u2014 no direct-report members; recommending \u2260 accepting<\/td><\/tr>\n <tr><td>Comparative statement<\/td><td>Prepared except up to <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Responsive bid<\/td><td>Complete, no substantive deviation<\/td><\/tr>\n <tr><td>Unit vs total<\/td><td><strong>Unit price<\/strong> prevails<\/td><\/tr>\n <tr><td>Words vs figures<\/td><td><strong>Words<\/strong> prevail; original over scanned copy<\/td><\/tr>\n <tr><td>Deviation<\/td><td>Substantive \u2192 reject; minor \u2192 may condone (no fiscal\/ranking impact)<\/td><\/tr>\n <tr><td>Reasonableness<\/td><td>Judged mainly against the <strong>Last Purchase Price<\/strong><\/td><\/tr>\n <tr><td>Parallel contract split<\/td><td><strong>70 : 30<\/strong> (two suppliers)<\/td><\/tr>\n <tr><td>Negotiation<\/td><td>Discouraged; <strong>only with L1<\/strong> (Rule 173(xiv)); never others<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch8\" data-chapter=\"8\">\n\n <div class=\"chapter-heading-block\" id=\"c8-emerg\">\n <span class=\"chapter-badge\">CH 8 \u00b7 UNIQUE FEATURES<\/span>\n <h2>Procurements with Unique Features<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">When the standard route does not fit (8.1)<\/div>\n <div class=\"def-text\">\n Some procurements need special handling \u2014 operational emergencies, capital equipment, maintenance, buy-back of old assets, turnkey supply and print media. The guidelines already carry <strong>fast-track modes and flexibilities<\/strong>; enhanced delegations may be built into the SoPP so that an emergency does not force a departure from process.\n <\/div>\n <\/div>\n\n <p>For an operational emergency the suggested modes, fastest first, are: <strong>GeM portal<\/strong> \u2192 <strong>direct purchase without quotation<\/strong> \u2192 <strong>Purchase Committee<\/strong> \u2192 <strong>SLTE \/ LTE \/ STE with reduced bid time<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Fast-track modes in order of speed (8.1)<\/div>\n <svg viewBox=\"0 0 700 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Fast-track procurement modes in order of speed\">\n<defs><marker id=\"spd\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#spd)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">FASTEST<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">MORE TIME<\/text>\n<rect x=\"22\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<circle cx=\"97.0\" cy=\"98\" r=\"17\" fill=\"#0e8f7a\"\/>\n<text x=\"97.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"97.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#0e8f7a\">GeM portal<\/text>\n<rect x=\"182\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<circle cx=\"257.0\" cy=\"98\" r=\"17\" fill=\"#1c5da6\"\/>\n<text x=\"257.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"257.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#1c5da6\">Direct (no quote)<\/text>\n<rect x=\"342\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<circle cx=\"417.0\" cy=\"98\" r=\"17\" fill=\"#c97c10\"\/>\n<text x=\"417.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"417.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">Purchase Committee<\/text>\n<rect x=\"502\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<circle cx=\"577.0\" cy=\"98\" r=\"17\" fill=\"#7e3eb5\"\/>\n<text x=\"577.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"577.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#7e3eb5\">SLTE \/ LTE \/ STE<\/text>\n<\/svg>\n <div class=\"fig-cap\">In a declared crisis (disaster\/pandemic), reasonableness is judged knowing prices may be higher; Model Tender Documents and standard GCC do not apply to emergency procurement.<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Crisis dispensations (with competent-authority approval)<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">SELF-DECL<\/span><span class=\"nl-text\">Eligibility\/qualification by <strong>vendor self-declaration<\/strong> (with penalties for false declarations); physical inspection replaced by self-declared quality.<\/span><\/li>\n <li><span class=\"nl-tag\">TIMELINES<\/span><span class=\"nl-text\">Bid-submission time shortened to <strong>1\u20133 days<\/strong>; bids by phone, email or in person; single-stage single-envelope; <strong>even a single offer may be accepted<\/strong> without re-tendering.<\/span><\/li>\n <li><span class=\"nl-tag\">RELAX<\/span><span class=\"nl-text\">Tender cost, <strong>EMD, performance security, LD, negotiations<\/strong> and vendor-registration fees may be relaxed or dispensed with; documents kept to the bare minimum.<\/span><\/li>\n <li><span class=\"nl-tag\">AUDIT<\/span><span class=\"nl-text\">After the crisis ends, special time-bound internal and external audits with a <strong>large sample size<\/strong>; undelivered contracts reviewed for cancellation.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c8-capital\">\n <span class=\"section-badge blue\">\u00a7 8.3–8.6<\/span>\n <h3>Capital goods, AMC, NPV & turnkey<\/h3>\n <\/div>\n\n <p>Capital goods (machinery & plant, IT systems) create lasting assets and carry a long life \u2014 so their acquisition is an <strong>investment decision<\/strong> against an item-specific budget. What you pay to buy is only the visible tip of the cost:<\/p>\n\n <p>Beneath the visible purchase price lie the larger lifetime costs: <strong>installation & commissioning<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance & AMC<\/strong>, <strong>spares & training<\/strong>, and <strong>disposal<\/strong> at the end of life \u2014 together the Total Cost of Ownership.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Total Cost of Ownership \u2014 the iceberg (8.3)<\/div>\n <svg viewBox=\"0 0 640 360\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Total Cost of Ownership iceberg for capital goods\">\n<rect x=\"0\" y=\"120\" width=\"640\" height=\"240\" fill=\"#2d8ecf\" opacity=\"0.07\"\/>\n<line x1=\"0\" y1=\"120\" x2=\"640\" y2=\"120\" stroke=\"#2d8ecf\" stroke-width=\"1.5\" stroke-dasharray=\"6 5\"\/>\n<text x=\"628\" y=\"113\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-style=\"italic\" fill=\"#2d8ecf\">waterline<\/text>\n<polygon points=\"320,42 248,120 392,120\" fill=\"#1c5da6\"\/>\n<text x=\"320\" y=\"92\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Purchase<\/text>\n<text x=\"320\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">price<\/text>\n<polygon points=\"248,120 392,120 472,344 168,344\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"156\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Installation & commissioning<\/text>\n<text x=\"320\" y=\"188\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Operation & consumables<\/text>\n<text x=\"320\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Maintenance & AMC<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Spares & training<\/text>\n<text x=\"320\" y=\"284\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Disposal at end of life<\/text>\n<text x=\"320\" y=\"324\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#9ec3e6\">Total Cost of Ownership<\/text>\n<\/svg>\n <div class=\"fig-cap\">Because lifetime operating, maintenance and disposal costs can outweigh the purchase price, evaluation may build in initial spares and the <strong>NPV of AMC<\/strong> over the equipment's life.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal blue\">\n <li><strong>Alternatives to owning<\/strong> \u2014 hire, hire-purchase, lease, or buying the functionality \"as a service\" (useful where equipment, e.g. IT, ages fast).<\/li>\n <li><strong>Bundled elements<\/strong> \u2014 installation, commissioning, training, trials, warranty, post-warranty maintenance and assured spares; 2-year initial spares may be required.<\/li>\n <li><strong>Turnkey<\/strong> \u2014 where several machines\/components and third-party works act in tandem, an all-encompassing turnkey contract (manufacture \u2192 install \u2192 commission) may be better (8.6).<\/li>\n <li><strong>Pre-qualification fit<\/strong> \u2014 experience, capacity and financial strength drive quality and after-sales support, so capital goods suit pre-qualification bidding.<\/li>\n <\/ol>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 169<\/div><div class=\"st-cap\"><strong>AMC<\/strong> starts only after the warranty period; OEM or a competent firm<\/div><\/div>\n <div class=\"stat-tile blue\"><div class=\"st-num\">7%<\/div><div class=\"st-cap\">Illustrative <strong>discount rate<\/strong> for NPV; computed via the Excel NPV function<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Rule 176<\/div><div class=\"st-cap\"><strong>Buy-back<\/strong> \u2014 quote price with and without a rebate for the old item<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 = discount<\/div><div class=\"st-cap\"><strong>Books\/print media<\/strong> \u2014 quoted as net discount on published price<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz8\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 8 Quiz \u2014 emergencies, capital goods & AMC<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 8. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage8\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c8-recap\">\n <div class=\"recap-title\">⚡ Chapter 8 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Fastest emergency mode<\/td><td><strong>GeM<\/strong> \u2192 Direct \u2192 Purchase Committee \u2192 SLTE\/LTE\/STE (reduced time)<\/td><\/tr>\n <tr><td>Crisis bid time<\/td><td>Shortened to <strong>1\u20133 days<\/strong>; single offer acceptable<\/td><\/tr>\n <tr><td>Crisis & MTD\/GCC<\/td><td>Model Tender Documents & standard GCC <strong>do not apply<\/strong><\/td><\/tr>\n <tr><td>Below Rs 50,000 in crisis<\/td><td>Local purchase allowed even if item is on GeM<\/td><\/tr>\n <tr><td>Buy-back<\/td><td><strong>Rule 176<\/strong>; quote with & without rebate<\/td><\/tr>\n <tr><td>Capital goods<\/td><td>Item-specific budget; an <strong>investment decision<\/strong><\/td><\/tr>\n <tr><td>TCO<\/td><td>Lifetime O&M + disposal may outweigh purchase price<\/td><\/tr>\n <tr><td>AMC<\/td><td><strong>Rule 169<\/strong>; starts after warranty; OEM or competent firm<\/td><\/tr>\n <tr><td>NPV discount rate<\/td><td><strong>7%<\/strong> (illustrative); Excel NPV function<\/td><\/tr>\n <tr><td>Books \/ print media<\/td><td>L1 = the <strong>best net discount<\/strong> on published price<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch9\" data-chapter=\"9\">\n\n <div class=\"chapter-heading-block\" id=\"c9-cm\">\n <span class=\"chapter-badge\">CH 9 \u00b7 CONTRACT MANAGEMENT<\/span>\n <h2>Contract Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">From signed contract to delivered goods (9.1)<\/div>\n <div class=\"def-text\">\n Contract management is the active stewardship of a contract after award \u2014 ensuring the goods are delivered to specification, on time and at the agreed cost, with risks managed to a clean closure. It runs across several control domains:\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The contract-management lifecycle<\/div>\n <svg viewBox=\"0 0 720 120\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Contract management lifecycle\">\n<defs><marker id=\"cl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<rect x=\"18\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#41617f\"\/>\n<text x=\"68.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<line x1=\"118\" y1=\"62.0\" x2=\"134\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"134\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"184.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Scope & Qty<\/text>\n<line x1=\"234\" y1=\"62.0\" x2=\"250\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"250\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"300.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Time<\/text>\n<line x1=\"350\" y1=\"62.0\" x2=\"366\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"366\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"416.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Quality<\/text>\n<line x1=\"466\" y1=\"62.0\" x2=\"482\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"482\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#7e3eb5\"\/>\n<text x=\"532.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Payment<\/text>\n<line x1=\"582\" y1=\"62.0\" x2=\"598\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"598\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"648.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Closure<\/text>\n<\/svg>\n <div class=\"fig-cap\">The signed contract becomes binding the moment the award is notified; everything after that is execution monitoring.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-qty\">\n <span class=\"section-badge blue\">\u00a7 9.2<\/span>\n <h3>Scope of supply & quantity control<\/h3>\n <\/div>\n\n <p>Minor short\/excess deliveries in the <strong>final consignment<\/strong> are unavoidable and may be treated as completion within a tolerance, without a formal amendment. Where the requirement changes, a <strong>plus\/minus option clause<\/strong> adjusts quantity:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">25\u201330%<\/div><div class=\"st-cap\">Option-clause variation should ideally <strong>not exceed<\/strong> this band<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">50%<\/div><div class=\"st-cap\">Option clause normally exercised after receipt of 50% quantity<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">CA approval<\/div><div class=\"st-cap\">From the authority that approved the original tender decision; none on development orders<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-time\">\n <span class=\"section-badge teal\">\u00a7 9.3<\/span>\n <h3>Time control & liquidated damages<\/h3>\n <\/div>\n\n <p>The delivery period is the <strong>\"essence of the contract\"<\/strong> and must be realistic; vague phrases like \"immediately\" are not legally binding. For staggered supply, slight monthly deviation is tolerated \u2014 <strong>\u00b15% cumulative in a year<\/strong> (\u00b15% in a month \/ \u00b17% per quarter) is not a violation and attracts no LD. Where delivery slips, <strong>Liquidated Damages<\/strong> accrue:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How liquidated damages accrue (9.3.9)<\/div>\n <svg viewBox=\"0 0 660 290\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Liquidated damages accrual capped at five or ten per cent\">\n<defs><marker id=\"ax\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"axr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"64\" y1=\"250\" x2=\"64\" y2=\"34\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#ax)\"\/>\n<line x1=\"64\" y1=\"250\" x2=\"624\" y2=\"250\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#axr)\"\/>\n<text x=\"20\" y=\"145\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 20 145)\">LD %<\/text>\n<text x=\"344.0\" y=\"282\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\">weeks of delay<\/text>\n<line x1=\"64\" y1=\"150\" x2=\"624\" y2=\"150\" stroke=\"#c97c10\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"144\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c97c10\">5% cap<\/text>\n<line x1=\"64\" y1=\"50\" x2=\"624\" y2=\"50\" stroke=\"#c0392b\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"44\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">10% max<\/text>\n<path d=\"M64.0 250.0 L64.0 240.0 L101.9 240.0 L101.9 230.0 L139.7 230.0 L139.7 220.0 L177.6 220.0 L177.6 210.0 L215.4 210.0 L215.4 200.0 L253.3 200.0 L253.3 190.0 L291.1 190.0 L291.1 180.0 L329.0 180.0 L329.0 170.0 L366.9 170.0 L366.9 160.0 L404.7 160.0 L404.7 150.0 L442.6 150.0 L594.0 150.0\" fill=\"none\" stroke=\"#1c5da6\" stroke-width=\"2.8\"\/>\n<text x=\"56\" y=\"254\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">0%<\/text>\n<text x=\"56\" y=\"154\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">5%<\/text>\n<text x=\"215.42857142857142\" y=\"200.0\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">+0.5% \/ week<\/text>\n<\/svg>\n <div class=\"fig-cap\">LD is a genuine pre-estimate of loss, recoverable from the performance\/warranty guarantee. Extension may be granted with or without a denial clause; persistent default is a breach.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-quality\">\n <span class=\"section-badge amber\">\u00a7 9.4<\/span>\n <h3>Quality assurance & inspection<\/h3>\n <\/div>\n\n <div class=\"flow amber\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Preliminary inspection<\/div><div class=\"fs-text\">Goods received on a <strong>\"subject to inspection\"<\/strong> basis; a preliminary receipt acknowledges the claimed quantity.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Detailed inspection<\/div><div class=\"fs-text\">Before acceptance, the goods are tested per the specification's inspection stages and tests; defective goods may be returned (usually within <strong>90 days<\/strong> of the original inspection report).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">GRIR<\/div><div class=\"fs-text\">A <strong>Goods Receipt & Inspection Report (Annexure 25)<\/strong> records acceptance and is the basis for payment.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-breach\">\n <span class=\"section-badge red\">\u00a7 9.8<\/span>\n <h3>Breach, remedies & termination<\/h3>\n <\/div>\n\n <p>On default the procuring entity may, without prejudice to other rights, recover LD, encash the performance security, terminate for default, or undertake a <strong>risk purchase<\/strong> \u2014 re-procuring the goods at the defaulting contractor's risk and cost. Warranty failure attracts a penalty up to <strong>5%<\/strong> of contract value over the warranty period. Termination may also be for convenience or under force majeure.<\/p>\n\n <div class=\"section-heading-block\" id=\"c9-dispute\">\n <span class=\"section-badge purple\">\u00a7 9.9–9.10<\/span>\n <h3>Dispute resolution & closure<\/h3>\n <\/div>\n\n <p>Disputes should be settled at the lowest, least adversarial level possible, escalating only if that fails:<\/p>\n <ol class=\"parts-list decimal purple\">\n <li><strong>Amicable settlement \/ Mediation<\/strong> \u2014 guided by the <strong>Mediation Act, 2023<\/strong>; the process must normally be completed within <strong>120 days<\/strong>.<\/li>\n <li><strong>Conciliation<\/strong> \u2014 under Part III of the <strong>Arbitration & Conciliation Act, 1996<\/strong>.<\/li>\n <li><strong>Arbitration<\/strong> \u2014 under the Arbitration & Conciliation Act, 1996; the arbitrator is appointed within <strong>60 days<\/strong> of a valid demand, and the seat of arbitration is the place from which the Letter of Award \/ contract was issued.<\/li>\n <li><strong>Courts<\/strong> \u2014 only where the routes above do not resolve the dispute.<\/li>\n <\/ol>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Escalating routes to resolve a dispute (9.9)<\/div>\n <svg viewBox=\"0 0 680 250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Dispute resolution escalation ladder\">\n<defs><marker id=\"es\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"46\" y=\"196\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"131.0\" y=\"224.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Amicable \/ Mediation<\/text>\n<rect x=\"192\" y=\"146\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"277.0\" y=\"174.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Conciliation<\/text>\n<rect x=\"338\" y=\"96\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"423.0\" y=\"124.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Arbitration<\/text>\n<rect x=\"484\" y=\"46\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"569.0\" y=\"74.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Courts<\/text>\n<line x1=\"34\" y1=\"222\" x2=\"34\" y2=\"38\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#es)\"\/>\n<text x=\"22\" y=\"135\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 22 135)\">more formality<\/text>\n<\/svg>\n <div class=\"fig-cap\">On closure, accounts are reconciled, final payment is made and securities released; a contract is not closed merely because the final payment was made.<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz9\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 9 Quiz \u2014 quantity, time, quality & disputes<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 9. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage9\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c9-recap\">\n <div class=\"recap-title\">⚡ Chapter 9 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Option clause size<\/td><td>Ideally <strong>\u2264 25\u201330%<\/strong>; exercised after <strong>50%<\/strong> receipt<\/td><\/tr>\n <tr><td>Delivery period<\/td><td>The <strong>\"essence of the contract\"<\/strong><\/td><\/tr>\n <tr><td>Monthly-rate tolerance<\/td><td><strong>\u00b15%<\/strong> cumulative\/year (\u00b17%\/quarter) \u2014 no LD<\/td><\/tr>\n <tr><td>Liquidated Damages<\/td><td><strong>0.5%\/week<\/strong>; max <strong>5%<\/strong> (10% if performance allowed after inordinate delay)<\/td><\/tr>\n <tr><td>Warranty-failure penalty<\/td><td>Up to <strong>5%<\/strong> of contract value<\/td><\/tr>\n <tr><td>Inspection<\/td><td>Preliminary \u2192 detailed \u2192 <strong>GRIR (Annexure 25)<\/strong>; reject within ~90 days<\/td><\/tr>\n <tr><td>Default remedy<\/td><td><strong>Risk purchase<\/strong> at the contractor's risk & cost<\/td><\/tr>\n <tr><td>Arbitration \/ Conciliation<\/td><td><strong>Arbitration & Conciliation Act, 1996<\/strong>; seat = where LoA issued<\/td><\/tr>\n <tr><td>Mediation<\/td><td><strong>Mediation Act 2023<\/strong>; complete within 120 days<\/td><\/tr>\n <tr><td>Closure<\/td><td>Not closed merely because final payment was made<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch10\" data-chapter=\"10\">\n\n <div class=\"chapter-heading-block\" id=\"c10-scrap\">\n <span class=\"chapter-badge\">CH 10 \u00b7 DISPOSAL<\/span>\n <h2>Disposal of Scrap Goods<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What counts as scrap (10.1)<\/div>\n <div class=\"def-text\">\n Goods that cannot be usefully repaired or renovated are <strong>\"scrap\"<\/strong>. Occasionally scrap includes second-hand, well-kept or even new goods that are <strong>surplus<\/strong> to the organisation's need and may fetch a fair price. Disposal is, in effect, the mirror image of procurement: the buyer becomes the seller, and the <strong>highest bidder (H1)<\/strong> wins.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-survey\">\n <span class=\"section-badge blue\">\u00a7 10.2–10.3<\/span>\n <h3>Classification & survey<\/h3>\n <\/div>\n\n <p>Items are sorted into <strong>trade groups<\/strong> (e.g. for melting, re-rolling) \u2014 segregated and sorted scrap fetches better value and helps fix reserve prices. Before anything is sold as scrap, a <strong>Survey Committee<\/strong> appointed by the Head of Office must declare it so, recording why it is surplus, obsolete or unserviceable.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">Survey Cttee<\/div><div class=\"st-cap\">Declares items scrap after inspection; SoPP lays down the competent authority<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Book value<\/div><div class=\"st-cap\">Assessed value basis; or <strong>5%<\/strong> where book value is negligible\/unavailable<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Reserve price<\/div><div class=\"st-cap\">Recorded in a <strong>sealed, page-numbered register<\/strong> before disposal; never sold below it<\/div><\/div>\n <\/div>\n\n <p>The mode of disposal is driven by value: <strong>petty sale<\/strong> to local dealers for small\/petty scrap; a <strong>limited tender<\/strong> to local scrap dealers for <strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong>; and <strong>e-Auction<\/strong> (preferred, via NIC \/ MSTC \/ Railways) for scrap <strong>above Rs 4 lakh<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Modes of disposal by scrap value (10.4)<\/div>\n <svg viewBox=\"0 0 680 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Disposal modes by scrap value\">\n<defs><marker id=\"up2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"256\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up2)\"\/>\n<text x=\"24\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 140)\">higher scrap value<\/text>\n<rect x=\"62\" y=\"30\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#7e3eb5\"\/>\n<text x=\"84\" y=\"60\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Above Rs 4 lakh<\/text>\n<text x=\"84\" y=\"82\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">e-Auction (preferred)<\/text>\n<text x=\"644\" y=\"60\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#7e3eb5\">NIC \u00b7 MSTC<\/text>\n<rect x=\"62\" y=\"110\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"110\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"140\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Rs 15k \u2013 Rs 4 lakh<\/text>\n<text x=\"84\" y=\"162\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender<\/text>\n<text x=\"644\" y=\"140\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">local dealers<\/text>\n<rect x=\"62\" y=\"190\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"190\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"220\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Small \/ petty<\/text>\n<text x=\"84\" y=\"242\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Petty sale (quotation)<\/text>\n<text x=\"644\" y=\"220\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">local dealers<\/text>\n<\/svg>\n <div class=\"fig-cap\">For transfers to other Government departments \/ fit-to-use overstocks, the rate is <strong>book value + 20% overheads + 7.5% freight<\/strong>. Security-risk scrap (stamps, negotiable instruments) needs special, safe handling.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-process\">\n <span class=\"section-badge purple\">\u00a7 10.5–10.10<\/span>\n <h3>The disposal workflow<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Survey & declare<\/div><div class=\"fs-text\">Survey Committee inspects and declares the item scrap\/surplus, recording reasons.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Segregate & price<\/div><div class=\"fs-text\">Sort into trade groups; secure valuable non-ferrous metals; fix and seal the <strong>reserve price<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Choose mode<\/div><div class=\"fs-text\">Petty sale, LTE or <strong>e-auction<\/strong> by value \u2014 e-auction preferred for higher-value scrap.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Award to H1 & deliver<\/div><div class=\"fs-text\">Sale to the highest bidder at\/above reserve price; material delivered after payment.<\/div><\/div>\n <\/div>\n\n <p>Disposal must comply with environmental law depending on the material:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Power cells<\/div><div class=\"cat-title\">Batteries Rules<\/div><p>The Batteries (Management & Handling) Rules, <strong>2001<\/strong> (as amended) govern battery scrap.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Hazardous<\/div><div class=\"cat-title\">Hazardous Waste Rules<\/div><p>The Hazardous & Other Wastes (Management & Transboundary Movement) Rules govern hazardous scrap.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Electronics<\/div><div class=\"cat-title\">e-Waste Rules<\/div><p>The e-Waste (Management) Rules, <strong>2016<\/strong> (as amended) govern electronic scrap.<\/p><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz10\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 10 Quiz \u2014 survey, modes & reserve price<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 10. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage10\"><\/div>\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore10\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext10\" disabled>Next →<\/button><\/div>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c10-recap\">\n <div class=\"recap-title\">⚡ Chapter 10 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Scrap<\/td><td>Goods not usefully repairable; may include surplus\/obsolete<\/td><\/tr>\n <tr><td>Disposal vs procurement<\/td><td>Mirror image \u2014 <strong>highest bidder (H1)<\/strong> wins<\/td><\/tr>\n <tr><td>Declaration<\/td><td>By a <strong>Survey Committee<\/strong>; reasons recorded<\/td><\/tr>\n <tr><td>Valuation basis<\/td><td>Book value, or <strong>5%<\/strong> if negligible\/unavailable<\/td><\/tr>\n <tr><td>Reserve price<\/td><td>Sealed, page-numbered register; never sold below it<\/td><\/tr>\n <tr><td>Petty sales<\/td><td>Small\/petty scrap to local dealers on quotation<\/td><\/tr>\n <tr><td>LTE mode<\/td><td><strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong> \u2014 limited tender to local dealers<\/td><\/tr>\n <tr><td>e-Auction mode<\/td><td>Above <strong>Rs 4 lakh<\/strong> \u2014 preferred; NIC \/ MSTC \/ Railways<\/td><\/tr>\n <tr><td>Inter-dept transfer rate<\/td><td>Book value + <strong>20%<\/strong> overheads + <strong>7.5%<\/strong> freight<\/td><\/tr>\n <tr><td>Compliance<\/td><td>Batteries Rules 2001 \u00b7 Hazardous Waste Rules \u00b7 e-Waste Rules 2016<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n <\/main>\n<\/div>\n<script>\n\/* \u2500\u2500\u2500\u2500\u2500 Chapter (tab) switching + sidebar navigation \u2500\u2500\u2500\u2500\u2500 *\/\n(function(){\n var details = Array.prototype.slice.call(document.querySelectorAll('details.toc-chapter'));\n var panes = Array.prototype.slice.call(document.querySelectorAll('section.chapter-pane'));\n\n function showChapter(n, scrollTop){\n panes.forEach(function(p){ p.classList.toggle('active', p.getAttribute('data-chapter') === String(n)); });\n if (scrollTop){\n var pane = document.getElementById('pane-ch'+n);\n if (pane) pane.scrollIntoView({behavior:'smooth', block:'start'});\n }\n }\n\n details.forEach(function(d){\n d.addEventListener('toggle', function(){\n if (d.open){\n details.forEach(function(o){ if (o !== d) o.open = false; });\n showChapter(d.getAttribute('data-chapter'), false);\n }\n });\n });\n\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a[href^=\"#\"]')).forEach(function(a){\n a.addEventListener('click', function(e){\n var id = a.getAttribute('href').slice(1);\n var target = document.getElementById(id);\n if (!target) return;\n e.preventDefault();\n var pane = target.closest('.chapter-pane');\n if (pane){\n var ch = pane.getAttribute('data-chapter');\n var d = document.querySelector('details.toc-chapter[data-chapter=\"'+ch+'\"]');\n if (d && !d.open) d.open = true;\n showChapter(ch, false);\n }\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a.active')).forEach(function(x){ x.classList.remove('active'); });\n a.classList.add('active');\n requestAnimationFrame(function(){ target.scrollIntoView({behavior:'smooth', block:'start'}); });\n });\n });\n})();\n\n\/* \u2500\u2500\u2500\u2500\u2500 Quiz factory \u2500\u2500\u2500\u2500\u2500 *\/\nfunction buildQuiz(stageId, scoreId, nextId, questions){\n var stage = document.getElementById(stageId);\n var scoreEl = document.getElementById(scoreId);\n var nextBtn = document.getElementById(nextId);\n if (!stage) return;\n var idx = 0, score = 0, answered = 0;\n\n function render(){\n var q = questions[idx];\n var html = '<div class=\"quiz-q\"><span class=\"q-tag\">Q'+(idx+1)+'<\/span><span>'+q.q+'<\/span><\/div><div class=\"quiz-opts\">';\n q.opts.forEach(function(opt, i){ html += '<button class=\"quiz-opt\" data-i=\"'+i+'\">'+opt+'<\/button>'; });\n html += '<\/div><div class=\"quiz-fb\"><\/div>';\n stage.innerHTML = html;\n var fb = stage.querySelector('.quiz-fb');\n var opts = Array.prototype.slice.call(stage.querySelectorAll('.quiz-opt'));\n opts.forEach(function(b){\n b.addEventListener('click', function(){\n var chosen = parseInt(b.getAttribute('data-i'), 10);\n opts.forEach(function(x){ x.classList.add('lock'); });\n opts[q.a].classList.add('correct');\n if (chosen === q.a){ score++; }\n else { b.classList.add('wrong'); }\n answered++;\n scoreEl.textContent = 'Score '+score+' \/ '+answered;\n fb.innerHTML = (chosen === q.a ? '<strong>Correct.<\/strong> ' : '<strong>Not quite.<\/strong> ') + q.fb;\n nextBtn.disabled = (idx >= questions.length - 1);\n if (idx >= questions.length - 1){ nextBtn.textContent = 'Done \\u2713'; }\n });\n });\n }\n nextBtn.addEventListener('click', function(){\n if (idx < questions.length - 1){ idx++; nextBtn.disabled = true; render(); }\n });\n render();\n}\n\nbuildQuiz('quizStage1','quizScore1','quizNext1',[\n {q:'At the apex of the statutory framework governing public procurement is \\u2014', opts:['Article 112','Article 266','Article 299','Article 280'], a:2, fb:'Article 299 of the Constitution requires that contracts binding on the Government be executed in writing by officers specifically authorised to do so.'},\n {q:'In the Central Government, the comprehensive rules for public procurement are mainly found in \\u2014', opts:['A dedicated Public Procurement Act','GFR 2017 (chapters 6 to 9) and the DFPR','The Sale of Goods Act, 1930','The Companies Act, 2013'], a:1, fb:'There is no exclusive procurement law; the rules sit in the General Financial Rules, 2017 (especially chapters 6 to 9), the DFPR and various Government orders.'},\n {q:'Procurement of common-use goods and services that are available on GeM is governed by \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 153 of GFR 2017','Rule 173 of GFR 2017'], a:1, fb:'Rule 149 of GFR 2017 makes procurement through the Government e-Marketplace (GeM) mandatory for common-use goods and services.'},\n {q:'Which of the following is NOT one of the Five R\\u2019s of Procurement?', opts:['Right Quality','Right Price','Right Source','Right Profit'], a:3, fb:'The Five R\\u2019s are Right Quality, Right Quantity, Right Price, Right Time & Place, and Right Source \\u2014 each aimed at the optimal balance, not the cheapest or most.'},\n {q:'The Standards (Canons) of Financial Propriety are set out in which rule of the GFR 2017?', opts:['Rule 21','Rule 144','Rule 149','Rule 153'], a:0, fb:'Rule 21 lays down the canons of financial propriety, including the test that an officer exercise the same vigilance over public money as a person of ordinary prudence would over their own.'},\n {q:'Under the Make-in-India (MII) Order 2017, the minimum local content to be a \\u2018Class-I local supplier\\u2019 is \\u2014', opts:['20 per cent','40 per cent','50 per cent','75 per cent'], a:2, fb:'A Class-I local supplier needs minimum 50% local content; a Class-II local supplier needs minimum 20%. The margin of purchase preference is 20%.'},\n {q:'Central Ministries\/Departments\/PSUs must procure a minimum percentage of their annual value of goods and services from Micro and Small Enterprises equal to \\u2014', opts:['10 per cent','20 per cent','25 per cent','33 per cent'], a:2, fb:'The Public Procurement Policy for MSEs sets a minimum 25% target, with sub-targets of 4% for SC\/ST-owned and 3% for women-owned MSEs.'},\n {q:'The Comptroller and Auditor General of India is established under which Articles of the Constitution?', opts:['Articles 112\\u2013114','Articles 148\\u2013151','Articles 149\\u2013151','Articles 266\\u2013267'], a:2, fb:'The CAG, the Supreme Audit Institution of India, is established under Articles 149\\u2013151 of the Constitution.'},\n {q:'A procurement valued below which threshold is exempt from the Make-in-India Order 2017?', opts:['Rs. 1 lakh','Rs. 5 lakh','Rs. 50 lakh','Rs. 1 crore'], a:1, fb:'Procurements with an estimated value below Rs. 5 lakh are exempt from the MII Order, provided procurement is not split to avoid the Order.'}\n]);\n\nbuildQuiz('quizStage2','quizScore2','quizNext2',[\n {q:'Procurement of goods should normally be initiated only on the basis of \\u2014', opts:['A market survey','An indent from the user Department','A budgetary quote','A CAG recommendation'], a:1, fb:'Procurement should be initiated only on an indent (Purchase Requisition) from the user Department, which first determines the need and anticipated quantum.'},\n {q:'Where a brand or trade name is unavoidable in describing a requirement, it should be followed by the words \\u2014', opts:['\\u201Cor better\\u201D','\\u201Cor substantially equivalent\\u201D','\\u201Cor approved equal\\u201D','\\u201Cas per sample\\u201D'], a:1, fb:'Except for proprietary single-source purchase, brand names should be avoided; where unavoidable, the description must add \\u201Cor substantially equivalent.\\u201D'},\n {q:'For obtaining budgetary quotes to estimate cost, the ideal number of quotes to be sought is \\u2014', opts:['One','Two','Three','Five'], a:2, fb:'Ideally three budgetary quotes should be obtained (within about 10\\u201321 days, with two extensions allowed); if fewer are received, the estimate is framed on the average of those received.'},\n {q:'Technical specifications should normally be based on \\u2014', opts:['International standards only','Bureau of Indian Standards (BIS) standards where they exist','The supplier\\u2019s catalogue','The cheapest available product'], a:1, fb:'Specifications should be based on recognised national standards (BIS) where they exist, with preference for BIS-marked goods; international standards apply only in their absence, with reasons recorded.'},\n {q:'The Bureau of Energy Efficiency (BEE) was established under the Energy Conservation Act, 2001, on \\u2014', opts:['1 January 2000','1 March 2002','1 April 2006','1 January 2015'], a:1, fb:'The BEE was set up on 1 March 2002; its Standards & Labelling Programme (2006) rates appliances by stars \\u2014 the higher the stars, the more efficient.'},\n {q:'Before granting administrative\/budgetary approval of an indent, it must first be certified that \\u2014', opts:['Three bids have been received','Budget funds are available and liability is noted','The CAG has been consulted','The item carries a BIS mark'], a:1, fb:'Approval of an indent requires certification that funds are available in the budget and that liability for the indent is noted against the total available budget.'},\n {q:'The Annual Procurement Plan published on GeM\/CPPP \\u2014', opts:['Initiates the procurement process','Confers a right on bidders to a tender','Does not amount to initiation of procurement','Replaces the indent'], a:2, fb:'Under Rule 144(x) of GFR 2017, publication of the Annual Procurement Plan is expressly not an initiation of procurement and casts no obligation or right regarding any tender.'},\n {q:'A procuring authority should normally neither package nor split its procurement to limit competition or avoid higher sanction, under \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 157 of GFR 2017','Rule 173 of GFR 2017'], a:2, fb:'Rule 157 of GFR 2017 bars packaging\/splitting to limit competition or avoid sanction, though division is allowed for recorded reasons such as efficiency, economy or MSE access.'},\n {q:'The stage at which cartel formation can be most effectively addressed is \\u2014', opts:['Bid opening','Contract management','Need assessment and procurement planning','Disposal of scrap'], a:2, fb:'Need assessment and procurement planning is the main stage to mitigate cartels \\u2014 by widening the supplier base and varying the mode, quantity and qualification criteria.'}\n]);\n\nbuildQuiz('quizStage3','quizScore3','quizNext3',[\n {q:'The Code of Integrity for Public Procurement is laid down in which rule of the GFR 2017?', opts:['Rule 144','Rule 150','Rule 175','Rule 161'], a:2, fb:'Rule 175 of GFR 2017 sets out the Code of Integrity, which both procuring officials and bidders\/suppliers must observe.'},\n {q:'Collusion or bid-rigging between bidders falls under which prohibited practice?', opts:['Corrupt practice','Anti-competitive practice','Coercive practice','Obstructive practice'], a:1, fb:'Collusion, bid-rigging or any arrangement under the Competition Act, 2002 is an \\u201Canti-competitive practice\\u201D \\u2014 one of the seven prohibited practices.'},\n {q:'Under the Code of Integrity, a bidder must disclose previous transgressions of the code over the last \\u2014', opts:['One year','Two years','Three years','Five years'], a:2, fb:'Bidders must declare any transgression of the code with any entity in any country during the last three years, or any debarment by another procuring entity.'},\n {q:'As guidance, the Integrity Pact threshold should cover what share of a Ministry\\u2019s annual procurement by value?', opts:['25\\u201340%','50\\u201360%','80\\u201390%','100%'], a:2, fb:'The threshold should be set so the Integrity Pact covers the bulk \\u2014 about 80 to 90 per cent by value \\u2014 of annual procurement expenditure.'},\n {q:'A bidder aggrieved by a decision of the procuring entity may seek review within \\u2014', opts:['3 days','5 days','15 days','30 days'], a:1, fb:'An affected bidder may apply for review within five days of the decision; a post-award grievance must be redressed and closed within 30 days.'},\n {q:'In the registration grading, Grade-A covers orders valued at \\u2014', opts:['Rs 1 lakh and above','Rs 5 lakh and above','Rs 25 lakh and above','Rs 50 lakh and above'], a:2, fb:'Grade-A covers orders of Rs 25 lakh and above; Grade-B Rs 5\\u201325 lakh; Grade-C Rs 1\\u20135 lakh. Registration is governed by Rule 150.'},\n {q:'A bidder convicted under the Prevention of Corruption Act may be debarred under Rule 151 for a period not exceeding \\u2014', opts:['Six months','One year','Two years','Three years'], a:3, fb:'Under Rule 151, a bidder convicted under the PC Act (or IPC for loss of life\/property in a procurement contract) may be debarred for up to three years.'},\n {q:'Debarment of a firm is best treated as \\u2014', opts:['A vigilance function','An executive function','A judicial function','An audit function'], a:1, fb:'Debarment is an executive function and should not be allocated to the Vigilance unit; it follows a reasonable opportunity to represent.'}\n]);\n\nbuildQuiz('quizStage4','quizScore4','quizNext4',[\n {q:'The mode of procurement primarily addresses which of the Five R\\u2019s?', opts:['Right Quality','Right Price','Right Source','Right Time'], a:2, fb:'The mode of procurement varies the width and specificity of the bidder catchment \\u2014 it is the \\u201CRight Source\\u201D of the Five R\\u2019s.'},\n {q:'The default mode of procurement, used for requirements above Rs 50 lakh, is \\u2014', opts:['Limited Tender Enquiry','Open Tender Enquiry','Single Tender Enquiry','Direct purchase'], a:1, fb:'Open Tender Enquiry (OTE) is the default mode (Rule 161), used above Rs 50 lakh; it seeks the widest competition and gives the best value for money.'},\n {q:'A Global Tender Enquiry shall generally NOT be invited up to a value of \\u2014', opts:['Rs 50 lakh','Rs 5 crore','Rs 50 crore','Rs 200 crore'], a:3, fb:'No GTE is invited up to Rs 200 crore (or any limit prescribed by DoE) without the approval of the competent authority designated by the Department of Expenditure.'},\n {q:'A distinctive feature of a Rate Contract \/ Framework Agreement is that \\u2014', opts:['A fixed quantity is guaranteed','No quantity is mentioned or guaranteed','It is always a single-source contract','It cannot be cancelled'], a:1, fb:'In a Rate Contract no quantity is mentioned, nor is any minimum drawable quantity guaranteed; supply orders are placed against the agreed rate during its validity.'},\n {q:'A Limited Tender Enquiry (LTE) may be used for procurements up to \\u2014', opts:['Rs 5 lakh','Rs 25 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'LTE (Rule 162) is used up to Rs 50 lakh and must be sent to more than three registered vendors; above Rs 50 lakh, a Special LTE is allowed only in exceptional circumstances.'},\n {q:'Direct procurement without quotation (petty purchase) is permitted up to \\u2014', opts:['Rs 25,000 per case','Rs 50,000 per case','Rs 1 lakh per case','Rs 5 lakh per case'], a:1, fb:'Direct purchase without quotation is allowed up to Rs 50,000 per case (Rule 154) \\u2014 enhanced to Rs 1 lakh for scientific Ministries\/Departments.'},\n {q:'Procurement by a local Purchase Committee of three members applies to values \\u2014', opts:['Up to Rs 50,000','Rs 50,000 to Rs 5 lakh','Rs 5 lakh to Rs 25 lakh','Above Rs 50 lakh'], a:1, fb:'A three-member Purchase Committee (Rule 155) handles procurements above Rs 50,000 and up to Rs 5 lakh (Rs 10 lakh for scientific bodies).'},\n {q:'On GeM, a direct purchase above Rs 50,000 and up to Rs 10 lakh must be from the lowest-priced seller among \\u2014', opts:['Any single seller','At least two manufacturers','At least three different manufacturers','At least five sellers'], a:2, fb:'Between Rs 50,000 and Rs 10 lakh, the buyer purchases from the GeM seller with the lowest price among at least three different manufacturers; above Rs 10 lakh, bidding or reverse auction is used.'}\n]);\n\n\nbuildQuiz('quizStage5','quizScore5','quizNext5',[\n {q:'The contents of a tender document are governed by which rule of the GFR 2017?', opts:['Rule 161','Rule 165','Rule 168','Rule 173'], a:2, fb:'Rule 168 lays down the contents of the tender document \\u2014 the eight ordered sections from the NIT to the Qualification & Evaluation Criteria.'},\n {q:'In a tender document, conditions that apply only after the announcement of the award are placed in the \\u2014', opts:['Instructions to Bidders (ITB)','General Conditions of Contract (GCC)','Notice Inviting Tender (NIT)','Schedule of Requirements'], a:1, fb:'The GCC covers everything from the announcement of award to contract closure; the ITB covers everything up to the award.'},\n {q:'The three successive filters applied to bidders, in order, are \\u2014', opts:['Evaluation \\u2192 Eligibility \\u2192 Qualification','Eligibility \\u2192 Qualification \\u2192 Evaluation','Qualification \\u2192 Eligibility \\u2192 Evaluation','Eligibility \\u2192 Evaluation \\u2192 Qualification'], a:1, fb:'Eligibility decides who may participate, qualification tests capability to perform, and evaluation selects the most advantageous bid.'},\n {q:'If the tender document does not specify a bid-validity period, the default is \\u2014', opts:['30 days','45 days','60 days','90 days'], a:3, fb:'A bid remains valid for 90 days if no period is specified; a bid valid for a shorter period than required is rejected as non-responsive.'},\n {q:'The minimum time normally allowed to bidders rises to four weeks when \\u2014', opts:['The value exceeds Rs 50 lakh','International participation is contemplated','The mode is a limited tender','An Integrity Pact applies'], a:1, fb:'At least three weeks are normally allowed, rising to not less than four weeks where international participation is contemplated.'},\n {q:'A bid that quotes NIL charges\/consideration shall be \\u2014', opts:['Treated as the lowest bid','Treated as unresponsive','Accepted with a clarification','Referred to the Tender Committee'], a:1, fb:'The tender document must provide that a NIL quote is treated as unresponsive and not considered.'},\n {q:'Late bids received after the deadline for receipt of bids are governed by which rule, under which they are not considered?', opts:['Rule 161','Rule 165','Rule 170','Rule 173'], a:1, fb:'Under Rule 165, bids received after the specified deadline are not considered; the Bid Opening Committee has no authority to reject a bid at the opening stage.'},\n {q:'A pre-bid conference is most appropriate for \\u2014', opts:['All petty purchases','Routine off-the-shelf goods','Turnkey or sophisticated, costly equipment','Rate contracts'], a:2, fb:'Pre-bid conferences are provided mainly for turnkey contracts and sophisticated, costly equipment, to clarify the tender before bids are submitted.'}\n]);\n\nbuildQuiz('quizStage6','quizScore6','quizNext6',[\n {q:'Bid Security (EMD) should ordinarily range between \\u2014', opts:['1% and 2% of estimated value','2% and 5% of estimated value','5% and 10% of estimated value','3% and 10% of estimated value'], a:1, fb:'Under Rule 170, Bid Security ordinarily ranges between 2% and 5% of the estimated value of the goods, rounded to the nearest thousand.'},\n {q:'Which bidders are exempt from payment of EMD?', opts:['All registered bidders','MSEs and DPIIT-recognised start-ups','Only CPSEs','Foreign bidders in GTE'], a:1, fb:'Micro & Small Enterprises and DPIIT-recognised start-ups are exempt from EMD; in place of bid security, a Bid Securing Declaration may also be permitted.'},\n {q:'Performance Security for a goods contract is normally \\u2014', opts:['1\\u20132% of contract value','2\\u20135% of contract value','3\\u20135% of contract value','10\\u201315% of contract value'], a:2, fb:'Performance Security is 3\\u20135% of contract value for goods (3\\u201310% for Works), under Rule 171.'},\n {q:'Submission of Performance Security is not necessary for a tender value up to \\u2014', opts:['Rs 5 lakh','Rs 10 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'Performance Security is not necessary for a tender value up to Rs 50 lakh; it is otherwise valid for 60 days beyond all contractual obligations.'},\n {q:'An Insurance Surety Bond is distinctive because it \\u2014', opts:['Requires full collateral with the surety','Is a premium-based product needing no collateral','Is issued only by the RBI','Is valid only abroad'], a:1, fb:'Unlike a bank guarantee, an Insurance Surety Bond is a premium-based, three-party product that does not require the principal to deposit collateral.'},\n {q:'The quantum of advance payment to a State\/Central Government agency or PSE should generally not exceed \\u2014', opts:['15%','30%','40%','50%'], a:2, fb:'Advance to a State\/Central Government agency or PSE should not generally exceed 40% of the contract value, secured by a bank guarantee of at least 110% of the advance.'},\n {q:'A contract with deliveries longer than 12 months should normally carry a \\u2014', opts:['Firm and fixed price','Price Variation Clause','NIL price','Single source price'], a:1, fb:'Deliveries up to 12 months are normally on a firm and fixed price; deliveries longer than 12 months use a Price Variation Clause with a base date, time-lag and ceiling.'},\n {q:'An electronic Bank Guarantee (e-BG) is processed on the portal of \\u2014', opts:['GeM','CPPP','NeSL','RBI'], a:2, fb:'An e-BG is a dematerialised bank guarantee processed on the NeSL portal; verification with NeSL is sufficient, without verifying with the issuing bank.'}\n]);\n\nbuildQuiz('quizStage7','quizScore7','quizNext7',[\n {q:'For procurements with financial implications above Rs 50 lakh, evaluation is normally done by a Tender Committee of \\u2014', opts:['One member','Two members','Three members','Five members'], a:2, fb:'A Tender Committee above Rs 50 lakh normally comprises three members, including a finance member nominated by the FA and a user representative.'},\n {q:'Rule 173(xxii) of GFR 2017 requires that, above Rs 50 lakh, no Tender Committee member \\u2014', opts:['Is from the finance wing','Reports directly to another member','Is a technical expert','Attends the bid opening'], a:1, fb:'Rule 173(xxii) bars a member who reports directly to another member, to preserve independence; the recommending authority must also not be the accepting authority.'},\n {q:'Where unit price \\u00d7 quantity does not equal the stated total, which prevails?', opts:['The total price','The unit price','The higher of the two','The bidder is asked to choose'], a:1, fb:'The unit price prevails and the total is corrected; sub-totals prevail over a mis-added grand total; and words prevail over figures.'},\n {q:'Between an amount written in words and the same amount in figures, the binding amount is \\u2014', opts:['The figures','The words','The lower amount','The higher amount'], a:1, fb:'The amount in words prevails over the amount in figures; likewise the original copy prevails over a scanned copy.'},\n {q:'A deviation that affects the scope, quality or performance of the product is \\u2014', opts:['A minor deviation that may be condoned','A substantive deviation leading to rejection','Always ignored','Only relevant in Works'], a:1, fb:'Such a deviation is substantive and the bid is rejected as non-responsive; minor deviations with no fiscal or ranking impact may be condoned after clarification.'},\n {q:'The reasonableness of the recommended price is judged mainly against the \\u2014', opts:['Highest bid received','Last Purchase Price','Bidder\\u2019s catalogue','Budget estimate alone'], a:1, fb:'Reasonableness is judged mainly against the Last Purchase Price, updated for quantity, delivery and terms, triangulating more than one method of estimation.'},\n {q:'When a parallel contract splits the quantity between two suppliers, the typical ratio is \\u2014', opts:['50:50','60:40','70:30','80:20'], a:2, fb:'A split between two suppliers is typically in the ratio 70:30, with L1 awarded at least the prescribed share.'},\n {q:'Price negotiation after bid opening, where unavoidable, must be conducted \\u2014', opts:['With all bidders','Only with L1','With L1 and L2','With the lowest three bidders'], a:1, fb:'Under Rule 173(xiv), negotiation is severely discouraged and, where unavoidable, is conducted only with L1 \\u2014 never extended to other bidders, even if cartel rates are suspected.'}\n]);\n\n\nbuildQuiz('quizStage8','quizScore8','quizNext8',[\n {q:'Among the fast-track modes for an operational emergency, the fastest suggested route is \\u2014', opts:['Open Tender Enquiry','Procurement through the GeM portal','Global Tender Enquiry','Two-stage bidding'], a:1, fb:'Procurement through GeM is the fastest suggested route, followed by direct purchase, purchase committee, and SLTE\/LTE\/STE with reduced bid time.'},\n {q:'In a declared crisis, the minimum time for bid submission may be shortened to about \\u2014', opts:['1\\u20133 days','1\\u20132 weeks','three weeks','four weeks'], a:0, fb:'Crisis dispensations allow timelines as short as 1\\u20133 days, and bids may even be received by phone, email or in person.'},\n {q:'During an emergency, which documents normally do NOT apply?', opts:['The GFR itself','Model Tender Documents and standard GCC','The SoPP','The Constitution'], a:1, fb:'Model Tender Documents and the standard General Conditions of Contract do not apply to emergency procurement; norms like EMD, SD and LD may also be relaxed.'},\n {q:'A buy-back offer, where an old item is traded in while buying a new one, is provided for in \\u2014', opts:['Rule 144','Rule 169','Rule 176','Rule 154'], a:2, fb:'Under Rule 176, the bidder is asked to quote both with a rebate for the old item and without it, giving the department the option to trade or not.'},\n {q:'Acquisition of capital goods differs from consumables mainly because it \\u2014', opts:['Needs no budget','Is an investment decision against an item-specific budget','Is always single-source','Is exempt from inspection'], a:1, fb:'Capital goods are procured against an item-specific budgetary provision and are treated as an investment decision, often judged on Total Cost of Ownership.'},\n {q:'An Annual Maintenance Contract (Rule 169) should begin \\u2014', opts:['On the date of order','Before delivery','After the warranty period expires','Only at contract closure'], a:2, fb:'The AMC starts after the warranty period, during which the supplier maintains the goods free of cost; it may be with the OEM or another competent firm.'},\n {q:'In the NPV example used for evaluating capital-goods offers, the discount rate is taken as \\u2014', opts:['5%','7%','10%','12%'], a:1, fb:'The illustrative discount rate is 7%; the NPV is computed conveniently using the NPV function in Excel.'},\n {q:'In the procurement of books and print media, the L1 (best) offer is the one with the \\u2014', opts:['Lowest list price','Highest discount on published price','Fastest delivery','Largest catalogue'], a:1, fb:'Offers are solicited as a net discount over the published price, and the vendor offering the most competitive discount is treated as L1.'}\n]);\n\nbuildQuiz('quizStage9','quizScore9','quizNext9',[\n {q:'A plus\/minus option clause for varying quantity should ideally not exceed \\u2014', opts:['5\\u201310%','15\\u201320%','25\\u201330%','40\\u201350%'], a:2, fb:'The option clause should ideally not exceed 25\\u201330% of the original quantity and is normally exercised after receipt of 50% of the quantity, with CA approval.'},\n {q:'In contract law terms, the delivery period stipulated in a contract is treated as \\u2014', opts:['A guideline only','The essence of the contract','Negotiable at any time','Irrelevant to LD'], a:1, fb:'The delivery period is the \"essence of the contract\"; vague terms like \"immediately\" are avoided as they are not legally binding.'},\n {q:'Liquidated Damages for delayed delivery typically accrue at \\u2014', opts:['0.1% per week','0.5% per week','2% per week','5% per week'], a:1, fb:'LD is typically 0.5% (half per cent) of contract value per week of delay, recoverable from the performance\/warranty guarantee.'},\n {q:'The normal maximum on Liquidated Damages is \\u2014', opts:['2% of contract value','5% of contract value','10% of contract value','25% of contract value'], a:1, fb:'The normal cap on LD is 5% of contract value, rising to a maximum of 10% only where performance is allowed after inordinate delays.'},\n {q:'The basis for payment, prepared after inspection and acceptance of the goods, is the \\u2014', opts:['Letter of Award','Goods Receipt & Inspection Report (GRIR)','Comparative statement','Bid opening report'], a:1, fb:'The GRIR (Annexure 25) is prepared after inspection and acceptance and is the basis for receiving and paying for the material.'},\n {q:'When a contractor defaults, re-procuring the goods at the defaulter\\u2019s risk and cost is known as \\u2014', opts:['Risk purchase','Force majeure','Novation','Rate contract'], a:0, fb:'A risk purchase re-procures the goods at the defaulting contractor\\u2019s risk and cost \\u2014 one of the remedies for breach, alongside LD and encashment of performance security.'},\n {q:'Arbitration and conciliation of contract disputes are governed by the \\u2014', opts:['Contract Act, 1872','Arbitration and Conciliation Act, 1996','Sale of Goods Act, 1930','Competition Act, 2002'], a:1, fb:'The Arbitration and Conciliation Act, 1996 governs arbitration and conciliation; the seat of arbitration is the place from which the Letter of Award or contract is issued.'},\n {q:'Mediation of disputes is governed by the Mediation Act 2023 and must normally be completed within \\u2014', opts:['30 days','60 days','120 days','one year'], a:2, fb:'Mediation under the Mediation Act, 2023 must normally be completed within 120 days; if the dispute survives, parties may escalate.'}\n]);\n\nbuildQuiz('quizStage10','quizScore10','quizNext10',[\n {q:'In disposal, which bidder is selected \\u2014 the mirror image of procurement?', opts:['L1 (lowest)','H1 (highest)','The first bidder','Any registered dealer'], a:1, fb:'Disposal is the reverse of procurement: the highest bidder (H1) wins, and material is never sold below the reserve price.'},\n {q:'Before an item of stores can be sold as scrap, it must first be declared so by the \\u2014', opts:['Tender Committee','Survey Committee','Bid Opening Committee','Reserve Price Committee'], a:1, fb:'A Survey Committee appointed by the Head of Office inspects and declares the item scrap\/surplus\/obsolete, recording the reasons.'},\n {q:'Where an item\\u2019s book value is negligible or unavailable, its assessed value may be taken as \\u2014', opts:['1% of original cost','5% of original cost','10% of original cost','Nil'], a:1, fb:'The assessed value is based on book value, or 5% where the book value is negligible or unavailable.'},\n {q:'Scrap valued between Rs 15,000 and Rs 4 lakh is normally disposed of by \\u2014', opts:['Petty sale','Limited Tender to local scrap dealers','e-Auction only','Negotiation'], a:1, fb:'Scrap above Rs 15,000 and up to Rs 4 lakh is sold on a limited-tender basis to locally known scrap dealers in the relevant category.'},\n {q:'For scrap valued above Rs 4 lakh, the preferred mode of disposal is \\u2014', opts:['Petty sale','Limited Tender','e-Auction (NIC \/ MSTC \/ Railways)','Direct sale'], a:2, fb:'Above Rs 4 lakh, e-Auction is the preferred mode \\u2014 using platforms such as NIC, MSTC or Indian Railways \\u2014 though a disposal tender or public auction may also be used.'},\n {q:'The reserve price for a disposal lot must be \\u2014', opts:['Published in the NIT','Recorded in a sealed, page-numbered register before disposal','Set after bids are opened','Equal to the book value'], a:1, fb:'The reserve price is recorded on a page-numbered register and sealed before the disposal date; material is never sold below it.'},\n {q:'When fit-to-use surplus is transferred to another Government department, the rate is book value plus \\u2014', opts:['10% overheads + 5% freight','20% overheads + 7.5% freight','25% overheads + 10% freight','no addition'], a:1, fb:'Such transfers are priced at book value plus 20% overheads plus 7.5% freight.'},\n {q:'Disposal of electronic scrap must comply with the \\u2014', opts:['Batteries Rules 2001','e-Waste (Management) Rules, 2016','Sale of Goods Act, 1930','URDG 758'], a:1, fb:'Electronic scrap is governed by the e-Waste (Management) Rules, 2016; battery scrap by the Batteries Rules 2001, and hazardous scrap by the Hazardous Wastes Rules.'}\n]);\n\n<\/script>\n\n<\/body>\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 Goods (2024) \u2014 Interactive Study Notes Manual for Procurement of Goods The Government of India’s guidance 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\n\t\t\t\t\t\n\n\n\n\n\nManual for Procurement of Goods (2024) \u2014 Interactive Study Notes<\/title>\n<style>\n.elementor-section.elementor-section-stretched,\n .elementor-section-full_width,\n .elementor-container,\n .elementor-column,\n .elementor-column-wrap,\n .elementor-widget-wrap,\n .elementor-element {\n padding: 0 !important;\n margin: 0 !important;\n gap: 0 !important;\n }\n\n *, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; }\n :root {\n --navy:#10243f; --blue:#1c5da6; --sky:#2d8ecf; --teal:#0e8f7a;\n --amber:#c97c10; --red:#c0392b; --gold:#c89b0a; --purple:#7e3eb5;\n --slate:#41617f;\n --text:#1c2b3a; --muted:#5a6d80; --border:#dde6ef;\n --blueprint:#0c3b6e;\n }\n html { scroll-behavior: smooth; }\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; }\n a { text-decoration:none; color:inherit; }\n\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; }\n .hero::before { content:''; position:absolute; inset:0;\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);\n background-size:34px 34px; pointer-events:none; }\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; }\n .hero-inner { max-width:1120px; margin:0 auto; position:relative; z-index:1; }\n .hero-grid { display:grid; grid-template-columns:1fr 340px; gap:36px; align-items:center; }\n .hero-text { min-width:0; }\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; }\n .hero-illustration svg { width:100%; height:auto; display:block; }\n @keyframes heroFloat { 0%,100%{transform:translateY(0);} 50%{transform:translateY(-7px);} }\n .hero-kicker { display:inline-block; 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flex:none; width:23px; height:23px; border-radius:6px;\n display:inline-grid; place-items:center; background:var(--blue); color:#fff;\n font-family:'JetBrains Mono',monospace; font-size:12px; line-height:1;\n box-shadow:0 1px 0 rgba(0,0,0,.12) inset, 0 2px 5px -2px rgba(0,0,0,.4); }\n\n .callout.blue { background:#f6faff; border-left-color:var(--blue); }\n .callout.teal { background:#f3fdf9; border-color:#cdeee0; border-left:3px dotted var(--teal); }\n .callout.teal .callout-label { color:var(--teal); } .callout.teal .callout-label::before{ content:'\\22A1'; background:var(--teal); }\n .callout.amber { background:#fffbf3; border-color:#f3e3c3; border-left-color:var(--amber); }\n .callout.amber .callout-label { color:#9a6a00; } .callout.amber .callout-label::before{ content:'\\0021'; background:var(--amber); }\n .callout.purple { background:#faf6ff; border-color:#e7dcf6; border-left-color:var(--purple); }\n .callout.purple .callout-label { color:var(--purple); } .callout.purple .callout-label::before{ content:'\\2756'; background:var(--purple); }\n .callout.slate { background:#f6f8fb; border:1px solid #dde5ee; border-left-width:1px; }\n .callout.slate .callout-label { color:var(--slate); } .callout.slate .callout-label::before{ content:'\\25B8'; background:var(--slate); }\n\n .callout.gold { background:#fffdf3; border:1.5px solid #e7cf8e; border-left-width:1.5px; border-radius:9px; }\n .callout.gold .callout-label { color:#8a6a00; } .callout.gold .callout-label::before{ content:'\\00A7'; background:var(--gold); color:#3a2c00; }\n .callout.gold::before, .callout.gold::after { content:''; position:absolute; width:9px; height:9px; border:1.5px solid var(--gold); }\n .callout.gold::before { top:6px; left:6px; border-right:0; border-bottom:0; }\n .callout.gold::after { bottom:6px; right:6px; border-left:0; border-top:0; }\n\n .callout.red { background:#fff7f6; border-color:#f3cfca; border-left:4px solid var(--red); overflow:hidden; }\n .callout.red .callout-label { color:var(--red); margin:-15px -18px 12px; padding:11px 18px;\n background:linear-gradient(90deg,#fdecea,#fff7f6); border-bottom:1px solid #f3cfca; }\n .callout.red .callout-label::before{ content:'\\2691'; background:var(--red); }\n\n .callout.purple { overflow:hidden; }\n .callout.purple::after { content:''; position:absolute; top:0; right:0; border-width:0 16px 16px 0;\n border-style:solid; border-color:#fff #fff var(--purple) var(--purple); opacity:.55; }\n\n @media (prefers-reduced-motion: reduce){ .callout{ transition:none; } }\n\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; }\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; }\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; }\n .def-card .def-text { font-size:15px; color:#1f3a55; line-height:1.78; position:relative; z-index:1; text-align:justify; }\n\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; }\n .compare-intro { margin:20px 0 -2px; font-size:14.5px; color:#42526b; }\n .table-wrap { overflow-x:auto; -webkit-overflow-scrolling:touch; margin:16px 0 24px; }\n .table-wrap > .compare-table { margin:0; }\n .compare-table thead tr { background:var(--navy); color:#fff; }\n .compare-table th { padding:12px 16px; text-align:left; font-size:12.5px; font-weight:700; }\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; text-align:justify; text-justify:inter-word; hyphens:none; }\n .compare-table tr:nth-child(even) td { background:#f8fbfd; }\n .compare-table td.label-cell { font-weight:700; color:var(--navy); background:#eef4fa !important; text-align:left; }\n .compare-table td.code-cell { font-family:'JetBrains Mono',monospace; font-weight:700; color:var(--blue); background:#eef4fa !important; text-align:center; }\n\n .info-row { display:grid; grid-template-columns:repeat(auto-fit,minmax(150px,1fr)); gap:14px; margin:18px 0 26px; }\n .info-card { background:#fff; border:1.5px solid var(--border); border-top:4px solid var(--blue); border-radius:12px; padding:18px 16px; }\n .info-card.t-teal { border-top-color:var(--teal); }\n .info-card.t-amber { border-top-color:var(--amber); }\n .info-card.t-gold { border-top-color:var(--gold); }\n .info-card.t-red { border-top-color:var(--red); }\n .info-card.t-purple { border-top-color:var(--purple); }\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; }\n .info-card .ic-cap { font-size:12.5px; color:#5a6b7d; line-height:1.5; }\n\n .parts-list { list-style:none; 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grid-template-columns:128px 1fr; gap:0; border-bottom:1px solid var(--border); }\n .kv-list > li:last-child { border-bottom:none; }\n .kv-list > li .kv-k { background:#eef4fa; padding:12px 14px; font-weight:700; font-size:12.5px; color:var(--navy); display:flex; align-items:center; }\n .kv-list > li .kv-v { padding:12px 16px; font-size:13.5px; color:#2c3e50; line-height:1.65; text-align:justify; }\n .kv-list > li .kv-v strong { color:var(--navy); }\n @media (max-width:520px){ .kv-list > li { grid-template-columns:1fr; } .kv-list > li .kv-k { border-bottom:1px solid var(--border); } }\n\n \/* \u2500\u2500\u2500\u2500\u2500 Tag legend chips \u2500\u2500\u2500\u2500\u2500 *\/\n .chip-row { display:flex; flex-wrap:wrap; gap:8px; margin:8px 0 20px; }\n .chip { font-size:11.5px; font-weight:600; padding:6px 12px; border-radius:20px; background:#eef4fa; color:var(--navy); border:1px solid #d6e3f0; }\n .chip b { font-family:'JetBrains Mono',monospace; color:var(--blue); }\n\n @media (max-width:880px) {\n .layout { grid-template-columns:1fr; gap:32px; padding:28px 24px 64px; }\n .sidebar { position:static; }\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr 1fr; }\n .hero { padding:48px 24px 44px; }\n .breadcrumb-bar, .scope-banner { padding:10px 24px; }\n .hero-grid { grid-template-columns:1fr; gap:24px; }\n .hero-illustration { width:250px; margin:0 auto; }\n }\n @media (max-width:640px) {\n .compare-table.wide { min-width:560px; }\n .table-wrap { border:1px solid var(--border); border-radius:10px;\n background:linear-gradient(90deg,#fff 30%,rgba(255,255,255,0)),\n linear-gradient(90deg,rgba(255,255,255,0),#fff 70%) 100% 0,\n radial-gradient(farthest-side at 0 50%,rgba(16,36,63,.14),transparent),\n radial-gradient(farthest-side at 100% 50%,rgba(16,36,63,.14),transparent) 100% 0;\n background-repeat:no-repeat; background-size:40px 100%,40px 100%,14px 100%,14px 100%;\n background-attachment:local,local,scroll,scroll; }\n .compare-table th { font-size:12px; padding:10px 12px; }\n .compare-table td { font-size:13px; padding:9px 12px; }\n }\n @media (max-width:520px) {\n .hero h1 { font-size:24px; }\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr; }\n .quiz-opts { grid-template-columns:1fr 1fr; }\n .hero-illustration { display:none; }\n .layout { padding:22px 16px 56px; gap:26px; }\n .breadcrumb-bar, .scope-banner { padding:9px 16px; }\n .hero { padding:40px 18px 36px; }\n .recap { padding:20px 18px; }\n .callout { padding:14px 15px 15px; }\n .def-card { padding:18px 18px; }\n .def-card::before { font-size:46px; }\n .info-row { grid-template-columns:1fr; }\n .section-heading-block { margin:30px 0 12px; }\n }\n<\/style>\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin>\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\">\n<\/head>\n<body>\n\n\n<div class=\"hero\">\n <div class=\"hero-inner hero-grid\">\n <div class=\"hero-text\">\n \n <h1>Manual for Procurement of Goods<\/h1>\n <p class=\"hero-sub\">The Government of India's <strong>guidance compendium for public procurement of goods<\/strong> \u2014 a portal into the hierarchy of statutory framework, the <strong>General Financial Rules (GFR) 2017<\/strong>, the Delegation of Financial Powers Rules (DFPR) and the preferential-procurement policies that govern how Central Government entities buy. This revised <strong>Second Edition (2024)<\/strong> incorporates clarifications up to June 2024, the MAPS 2020 review and refreshed Model Tender Documents. These notes open with the <strong>Principles & Policies<\/strong> and the <strong>Need-Assessment \/ Specification \/ Planning<\/strong> stage.<\/p>\n \n <\/div>\n <div class=\"hero-illustration\" aria-hidden=\"true\">\n <svg viewBox=\"0 0 340 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"A goods crate with a quality seal beside a tender document and a gavel\">\n <ellipse cx=\"170\" cy=\"262\" rx=\"132\" ry=\"12\" fill=\"rgba(0,0,0,0.18)\"\/>\n \n <g transform=\"rotate(-7 96 120)\">\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"120\" rx=\"6\" fill=\"#f4f8fd\" stroke=\"#0a2238\" stroke-width=\"2\"\/>\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"22\" rx=\"6\" fill=\"#1c5da6\"\/>\n <g stroke=\"#9db8d4\" stroke-width=\"3\" stroke-linecap=\"round\">\n <line x1=\"70\" y1=\"96\" x2=\"138\" y2=\"96\"\/>\n <line x1=\"70\" y1=\"110\" x2=\"138\" y2=\"110\"\/>\n <line x1=\"70\" y1=\"124\" x2=\"120\" y2=\"124\"\/>\n <line x1=\"70\" y1=\"138\" x2=\"138\" y2=\"138\"\/>\n <line x1=\"70\" y1=\"152\" x2=\"112\" y2=\"152\"\/>\n <\/g>\n <\/g>\n \n <rect x=\"118\" y=\"146\" width=\"116\" height=\"86\" rx=\"8\" fill=\"#c97c10\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M118 174 H234\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M176 146 V232\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n \n <rect x=\"160\" y=\"146\" width=\"32\" height=\"86\" fill=\"#e0a040\" opacity=\"0.55\"\/>\n \n <circle cx=\"176\" cy=\"138\" r=\"22\" fill=\"#0e8f7a\" stroke=\"#0a6354\" stroke-width=\"3\"\/>\n <path d=\"M165 138 l7 8 14 -17\" fill=\"none\" stroke=\"#fff\" stroke-width=\"4\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n \n <g transform=\"rotate(18 246 168)\">\n <rect x=\"222\" y=\"150\" width=\"48\" height=\"34\" rx=\"6\" fill=\"#fffaf0\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <circle cx=\"228\" cy=\"167\" r=\"4\" fill=\"none\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <text x=\"250\" y=\"176\" font-family=\"Georgia,serif\" font-size=\"20\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#10243f\">₹<\/text>\n <\/g>\n \n <g transform=\"rotate(38 256 96)\">\n <rect x=\"246\" y=\"58\" width=\"14\" height=\"48\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <rect x=\"236\" y=\"44\" width=\"34\" height=\"22\" rx=\"5\" fill=\"#1c5da6\" stroke=\"#13456f\" stroke-width=\"2\"\/>\n <\/g>\n <rect x=\"232\" y=\"118\" width=\"46\" height=\"9\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\n\n<div class=\"scope-banner\">\n <div class=\"scope-inner\">\n <span>▶<\/span>\n <span><strong>Complete manual \u2014 all ten chapters.<\/strong> Principles & Policies · Need Assessment & Planning · Supplier Relationship Management · Modes & Tendering · Bid Invitation · Securities, Prices & Payments · Bid Evaluation & Award · Procurements with Unique Features · Contract Management · Disposal of Scrap Goods.<\/span>\n <\/div>\n<\/div>\n\n\n<div class=\"breadcrumb-bar\">\n <div class=\"breadcrumb-inner\">\n <a href=\"#\">Home<\/a>\n <span class=\"sep\">›<\/span>\n <a href=\"#\">Notes<\/a>\n <span class=\"sep\">›<\/span>\n <span>Manual for Procurement of Goods (2nd Edition, 2024)<\/span>\n <\/div>\n<\/div>\n\n<div class=\"layout\">\n <aside class=\"sidebar\">\n <div class=\"toc-card\">\n <div class=\"toc-card-title\">Table of Contents<\/div>\n\n <details class=\"toc-chapter\" data-chapter=\"1\" open>\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 1<\/span>\n <span class=\"toc-ch-title\">Introduction \u2014 Principles & Policies<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">1.1<\/span><a href=\"#c1-rules\">Rules, Regulations & this Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.3<\/span><a href=\"#c1-applic\">Applicability of the Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.4<\/span><a href=\"#c1-categ\">Categorisation of Procurements<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.5<\/span><a href=\"#c1-auth\">Competent Authority & Financial Advisers<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.6<\/span><a href=\"#c1-fiver\">The Five R's of Procurement<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.7-9<\/span><a href=\"#c1-vfm\">Value for Money, Principles & Propriety<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.10<\/span><a href=\"#c1-infra\">Procurement Infrastructure at the Centre<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.11<\/span><a href=\"#c1-pref\">Reserved Items & Preference Policies<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.13-14<\/span><a href=\"#c1-cycle\">The Procurement Cycle & Nomenclature<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c1-recap\">Chapter 1 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"2\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 2<\/span>\n <span class=\"toc-ch-title\">Need Assessment, Specs & Planning<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">2.1<\/span><a href=\"#c2-need\">Need Assessment<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.1f<\/span><a href=\"#c2-cost\">Estimation of Cost<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2<\/span><a href=\"#c2-spec\">Formulation of Technical Specifications<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2.8<\/span><a href=\"#c2-green\">Green Procurement & Energy Labels<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.3<\/span><a href=\"#c2-sanction\">Sanctions, Approvals & Indents<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.4<\/span><a href=\"#c2-risk1\">Need \/ Specification Risks<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5<\/span><a href=\"#c2-plan\">Procurement Planning<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5.1<\/span><a href=\"#c2-cartel\">Cartel Mitigation & Large Procurement<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c2-recap\">Chapter 2 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"3\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 3<\/span>\n <span class=\"toc-ch-title\">Supplier Relationship Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">3.1<\/span><a href=\"#c3-srm\">What SRM Covers<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.2<\/span><a href=\"#c3-cipp\">Code of Integrity (CIPP)<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.3<\/span><a href=\"#c3-pact\">Integrity Pact<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.4<\/span><a href=\"#c3-grievance\">Grievances & Redressal<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.5<\/span><a href=\"#c3-conduct\">Conduct of Public Servants<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.6<\/span><a href=\"#c3-register\">Registration & Pre-qualification<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.7<\/span><a href=\"#c3-debar\">Debarment of Suppliers<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c3-recap\">Chapter 3 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"4\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 4<\/span>\n <span class=\"toc-ch-title\">Modes of Procurement & Tendering<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">4.1<\/span><a href=\"#c4-modes\">Five Families of Mode<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.2-5<\/span><a href=\"#c4-advertised\">Advertised \u2014 OTE, GTE, RC, eRA<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.6-9<\/span><a href=\"#c4-restricted\">Pre-qualification, LTE & SLTE<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.10-13<\/span><a href=\"#c4-nomination\">Nomination & Shopping Modes<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.14-16<\/span><a href=\"#c4-tendering\">Tendering Systems & EoI<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.17<\/span><a href=\"#c4-channels\">Channels & GeM Purchase<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c4-recap\">Chapter 4 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"5\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 5<\/span>\n <span class=\"toc-ch-title\">Bid Invitation Process<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">5.1<\/span><a href=\"#c5-tdoc\">Tender Document & MTDs<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.1.3<\/span><a href=\"#c5-filters\">Eligibility, Qualification & Evaluation<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.2<\/span><a href=\"#c5-publish\">Publication & Pre-bid<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.3<\/span><a href=\"#c5-open\">Opening of Bids<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c5-recap\">Chapter 5 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"6\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 6<\/span>\n <span class=\"toc-ch-title\">Securities, Prices & Payments<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">6.1<\/span><a href=\"#c6-sec\">Forms of Security<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.1.3<\/span><a href=\"#c6-isb\">Insurance Surety Bond & e-BG<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.5<\/span><a href=\"#c6-advance\">Advance Payments<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.6<\/span><a href=\"#c6-prices\">Firm vs Variable Price<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c6-recap\">Chapter 6 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"7\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 7<\/span>\n <span class=\"toc-ch-title\">Bid Evaluation & Award<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">7.1<\/span><a href=\"#c7-eval\">Evaluation & Tender Committee<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3<\/span><a href=\"#c7-prelim\">Preliminary Examination<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3.2<\/span><a href=\"#c7-discrep\">Discrepancies & Deviations<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.6<\/span><a href=\"#c7-award\">Award, Reasonableness & Negotiation<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c7-recap\">Chapter 7 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"8\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 8<\/span>\n <span class=\"toc-ch-title\">Procurements with Unique Features<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">8.1<\/span><a href=\"#c8-emerg\">Emergencies & Disaster Management<\/a><\/li>\n <li><span class=\"toc-sub-num\">8.3<\/span><a href=\"#c8-capital\">Capital Goods, AMC, NPV & Turnkey<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c8-recap\">Chapter 8 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"9\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 9<\/span>\n <span class=\"toc-ch-title\">Contract Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">9.1<\/span><a href=\"#c9-cm\">Lifecycle & Purpose<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.2<\/span><a href=\"#c9-qty\">Scope & Quantity Control<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.3<\/span><a href=\"#c9-time\">Time Control & LD<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.4<\/span><a href=\"#c9-quality\">Quality & Inspection<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.8<\/span><a href=\"#c9-breach\">Breach & Termination<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.9<\/span><a href=\"#c9-dispute\">Dispute Resolution & Closure<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c9-recap\">Chapter 9 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"10\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 10<\/span>\n <span class=\"toc-ch-title\">Disposal of Scrap Goods<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">10.1<\/span><a href=\"#c10-scrap\">What Counts as Scrap<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.2<\/span><a href=\"#c10-survey\">Classification & Survey<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.5<\/span><a href=\"#c10-process\">The Disposal Workflow<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c10-recap\">Chapter 10 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <\/div>\n <\/aside>\n\n <main class=\"article\">\n \n <section class=\"chapter-pane active\" id=\"pane-ch1\" data-chapter=\"1\">\n\n <div class=\"chapter-heading-block\" id=\"c1-rules\">\n <span class=\"chapter-badge\">CH 1 \u00b7 PRINCIPLES & POLICIES<\/span>\n <h2>Introduction \u2014 Principles and Policies<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What this Manual is (1.1)<\/div>\n <div class=\"def-text\">\n Ministries, Departments, attached\/subordinate offices, local bodies, PSEs and other Government (including autonomous) bodies \u2014 collectively <strong>\"Procuring Entities\"<\/strong> \u2014 spend a large part of their budget buying goods, works and services. This Manual is not a complete compendium of all rules; it is a <strong>portal<\/strong> into the area, drawing attention to the basic norms of public procurement of goods. Common-use goods and services available on GeM must be procured through it (<strong>Rule 149, GFR 2017<\/strong>); for what is not on GeM, Ministries have full powers to make their own arrangements under the DFPR.\n <\/div>\n <\/div>\n\n <p>Procurement is governed not by a single law but by a layered hierarchy \u2014 the <strong>\"Procurement Guidelines\"<\/strong> of Annexure 1. There is <strong>no exclusive procurement statute<\/strong> in the Central Government; the rules live in the GFR and orders beneath the Constitution.<\/p>\n\n <p>Public procurement rests on a five-level hierarchy of authority, from the highest source downward:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Constitution<\/strong> \u2014 Article 299 (contracts made in the President's name), with Articles 14 and 19(1)(g) underpinning fairness and free trade.<\/li>\n <li><strong>Mercantile laws<\/strong> \u2014 the Indian Contract Act 1872 and the Sale of Goods Act 1930.<\/li>\n <li><strong>Rules & Regulations<\/strong> \u2014 GFR 2017 (Chapters 6\u20139), the DFPR and standing Government orders.<\/li>\n <li><strong>Manuals of Procurement<\/strong> \u2014 Goods, Works, and Consultancy \/ Non-consultancy Services.<\/li>\n <li><strong>Procurement & Model Tender Documents<\/strong> \u2014 the operational documents used for each case.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The hierarchy of procurement authority (1.1)<\/div>\n <svg viewBox=\"0 0 680 350\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pyramid of procurement authority from the Constitution down to procurement documents\">\n<polygon points=\"340,16 426,80 254,80\" fill=\"#10243f\"\/>\n<text x=\"340\" y=\"64\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Constitution<\/text>\n<polygon points=\"250,86 430,86 464,142 216,142\" fill=\"#163e6b\"\/>\n<text x=\"340\" y=\"119\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Mercantile Laws<\/text>\n<polygon points=\"212,148 468,148 506,206 174,206\" fill=\"#1c5da6\"\/>\n<text x=\"340\" y=\"182\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Rules & Regulations<\/text>\n<polygon points=\"170,212 510,212 550,270 130,270\" fill=\"#2d8ecf\"\/>\n<text x=\"340\" y=\"246\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Manuals of Procurement<\/text>\n<polygon points=\"126,276 554,276 594,332 86,332\" fill=\"#0e8f7a\"\/>\n<text x=\"340\" y=\"309\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Tender Documents<\/text>\n<\/svg>\n <div class=\"fig-cap\">At the apex, <strong>Article 299<\/strong> requires Government contracts to be in writing by authorised officers; each lower tier adds operational detail. Restrictions under <strong>Rule 144(xi)<\/strong> (land-border bidders) and orders like Make-in-India sit in the Rules tier.<\/div>\n <\/div>\n\n <p>The <strong>Procurement Policy Division (PPD), Department of Expenditure<\/strong> is the nodal authority for revising, interpreting and clarifying this Manual (1.2).<\/p>\n\n <div class=\"section-heading-block\" id=\"c1-applic\">\n <span class=\"section-badge teal\">\u00a7 1.3<\/span>\n <h3>Applicability \u2014 who and what the Manual covers<\/h3>\n <\/div>\n\n <p>The Manual applies to the procurement of all <strong>\"Goods\"<\/strong> as defined in the Procurement Glossary. What distinguishes goods from works and services is the ability to <strong>precisely describe the technical specification and scope<\/strong>. The other manuals are generically based on this one, which therefore applies <em>mutatis mutandis<\/em> wherever they are silent.<\/p>\n\n <ol class=\"parts-list decimal teal\">\n <li><strong>Core Government (Rule 1, GFR).<\/strong> All Central Government Ministries\/Departments and attached\/subordinate bodies \u2014 and autonomous bodies, except where their Government-approved bye-laws provide separate guidelines.<\/li>\n <li><strong>CPSEs & substantially-financed bodies.<\/strong> CPSEs, PSBs, PSICs, public financial institutions, constitutional\/statutory bodies and public academic institutions \u2014 except deviations approved by their competent authority (e.g. Board of Directors).<\/li>\n <li><strong>Indian Missions & CPSE units abroad.<\/strong> May adopt GFR financial thresholds in the host currency using the latest <strong>INR\u2013PPP conversion rate<\/strong> published by the IMF (reviewed annually).<\/li>\n <li><strong>Outsourced procurement.<\/strong> Still applies when the entity outsources, bundles, or uses a procurement support agency\/agent.<\/li>\n <\/ol>\n\n <p class=\"compare-intro\">Two situations sit <strong>outside<\/strong> the guidelines \u2014 worth separating from the coverage rules above.<\/p>\n <div class=\"cat-grid\">\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 1<\/div><div class=\"cat-title\">Own subsidiaries \/ JVs<\/div><p>Procurement for own use from a subsidiary or JV in which the entity holds a <strong>controlling share<\/strong>.<\/p><\/div>\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 2<\/div><div class=\"cat-title\">IPF-funded projects<\/div><p>World Bank <strong>Investment Project Financing (IPF)<\/strong> and similar IFA instruments follow the IFA's own procedures (<strong>Rule 264, GFR 2017<\/strong>). PforR \/ Results-based lending apply the guidelines as agreed in the legal agreements.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-categ\">\n <span class=\"section-badge amber\">\u00a7 1.4<\/span>\n <h3>Categorisation of procurements<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Tangible \u00b7 own premises<\/div><div class=\"cat-title\">Goods<\/div><p>Made on the <strong>supplier's premises<\/strong> (other than installation). May include incidental works\/services \u2014 transport, insurance, installation, training.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Tangible \u00b7 buyer's site<\/div><div class=\"cat-title\">Works<\/div><p>Executed on the <strong>procuring entity's premises<\/strong> (other than pre-fabricated parts). May include incidental goods, and vice-versa.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Intangible output<\/div><div class=\"cat-title\">Services<\/div><p>Distinguished by <strong>intangible output<\/strong>. Consultancy = predominant intellectual input, one-off; Non-consultancy = routine, standardised, measurable.<\/p><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">In case of doubt \u2014 how to classify (1.4)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision tree for classifying a procurement\">\n<defs><marker id=\"t1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"250\" y=\"24\" width=\"160\" height=\"46\" rx=\"10\" fill=\"#10243f\"\/>\n<text x=\"330.0\" y=\"52.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">What is procured?<\/text>\n<line x1=\"330\" y1=\"72\" x2=\"135\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"330\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"525\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<rect x=\"60\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"135.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Goods<\/text>\n<rect x=\"255\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Works<\/text>\n<rect x=\"450\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"525.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Services<\/text>\n<rect x=\"180\" y=\"216\" width=\"300\" height=\"50\" rx=\"10\" fill=\"#fff\" stroke=\"#c97c10\" stroke-width=\"1.8\"\/>\n<text x=\"330\" y=\"240\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">In doubt?<\/text>\n<text x=\"330\" y=\"258\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" fill=\"#5a6b7d\">Default to the Goods Manual<\/text>\n<\/svg>\n <div class=\"fig-cap\">For <strong>composite contracts<\/strong> mixing elements, the <strong>primary intention<\/strong> decides the category \u2014 irrespective of the relative values. IT projects are usually handled as consultancy services.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-auth\">\n <span class=\"section-badge purple\">\u00a7 1.5<\/span>\n <h3>Competent authority & consultation with Financial Advisers<\/h3>\n <\/div>\n\n <p>The first step is the <strong>decision to procure<\/strong>, with the exact or approximate expenditure. A competent authority accords <strong>administrative sanction<\/strong> under the DFPR, following the Procurement Guidelines (<strong>Rule 145, GFR 2017<\/strong>). Each entity may issue a <strong>Schedule of Procurement Powers (SoPP)<\/strong> adding detail to the DFPR delegations. Being a financial decision, it generally requires consultation of the <strong>Financial Adviser<\/strong> (Para 19, Charter for FA, 2023):<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:41%\"><col style=\"width:41%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Normal Procedure<\/th><th>Special Procedure<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Default?<\/td><td><strong>Yes<\/strong> \u2014 applies unless the Department's Secretary approves a special procedure with DoE concurrence.<\/td><td>Adopted only with the <strong>prior concurrence of Secretary (Expenditure)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">FA\/IFD consultation<\/td><td>Concurrence of the FA\/IFD on <strong>all procurement matters<\/strong>, except where re-delegation is within permissible limits.<\/td><td>A <strong>tailored level<\/strong> of involvement, defined by financial thresholds, stages or types of procurement.<\/td><\/tr>\n <tr><td class=\"label-cell\">Scope<\/td><td colspan=\"2\">Applies only to Ministries\/Departments under the FA Charter; <strong>CPSEs may devise their own systems<\/strong>. Payments under approved contracts need no IFD consultation, except where in relaxation\/variation of approved conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-fiver\">\n <span class=\"section-badge blue\">\u00a7 1.6<\/span>\n <h3>Basic aims \u2014 the Five R's of Procurement<\/h3>\n <\/div>\n\n <p>Every procurement seeks the <strong>optimal balance<\/strong> \u2014 \"right\" means optimal, not cheapest or most \u2014 across five parameters.<\/p>\n\n <p>The \"Five R's\" are the objectives every procurement balances: <strong>Right Quality<\/strong>, <strong>Right Quantity<\/strong>, <strong>Right Price<\/strong>, <strong>Right Time & Place<\/strong>, and the <strong>Right Source<\/strong> \u2014 none pursued so far as to defeat the others.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The Five R's around the optimal balance (1.6)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pentagon of the five R's of procurement\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"205\" x2=\"300.0\" y2=\"77.0\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"421.7\" y2=\"165.4\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"375.2\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"224.8\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"178.3\" y2=\"165.4\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"205\" r=\"56\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">FIVE<\/text>\n<text x=\"300\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">R’s<\/text>\n<circle cx=\"300.0\" cy=\"77.0\" r=\"46\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"300.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#1c5da6\">R1<\/text>\n<text x=\"300.0\" y=\"91.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quality<\/text>\n<circle cx=\"421.7\" cy=\"165.4\" r=\"46\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"421.7\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#0e8f7a\">R2<\/text>\n<text x=\"421.7\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quantity<\/text>\n<circle cx=\"375.2\" cy=\"308.6\" r=\"46\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"375.2\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c97c10\">R3<\/text>\n<text x=\"375.2\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Price<\/text>\n<circle cx=\"224.8\" cy=\"308.6\" r=\"46\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"224.8\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#7e3eb5\">R4<\/text>\n<text x=\"224.8\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Time\/Place<\/text>\n<circle cx=\"178.3\" cy=\"165.4\" r=\"46\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"178.3\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c0392b\">R5<\/text>\n<text x=\"178.3\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Source<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Quality<\/strong> refines into utility\/value; <strong>Price<\/strong> into life-cycle cost (not the cheapest); <strong>Source<\/strong> must have the right financial capacity and technical capability shown by past performance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-vfm\">\n <span class=\"section-badge teal\">\u00a7 1.7–1.9<\/span>\n <h3>Value for Money, fundamental principles & financial propriety<\/h3>\n <\/div>\n\n <p>The concept of price is refined into <strong>Total Cost of Ownership (TCO) \/ Life Cycle Cost (LCC) \/ Whole-of-Life (WOL)<\/strong>, and quality into <strong>utility\/value<\/strong>. Together they give <strong>Value for Money (VfM)<\/strong> \u2014 the effective, efficient and economical use of resources, weighing costs, benefits, risks and non-price attributes. <strong>Price alone is not VfM.<\/strong><\/p>\n\n <p>The cost of ownership runs well beyond the purchase price. Over the whole life it comprises <strong>acquisition<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance<\/strong>, and <strong>disposal<\/strong> costs.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Whole-of-Life cost \u2014 beyond the purchase price (1.7)<\/div>\n <svg viewBox=\"0 0 660 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Stacked bar showing whole of life cost components\">\n<rect x=\"40\" y=\"70\" width=\"162\" height=\"70\" fill=\"#1c5da6\"\/>\n<text x=\"121\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Acquisition<\/text>\n<rect x=\"202\" y=\"70\" width=\"174\" height=\"70\" fill=\"#0e8f7a\"\/>\n<text x=\"289\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Operation<\/text>\n<rect x=\"376\" y=\"70\" width=\"174\" height=\"70\" fill=\"#c97c10\"\/>\n<text x=\"463\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Maintenance<\/text>\n<rect x=\"550\" y=\"70\" width=\"70\" height=\"70\" fill=\"#41617f\"\/>\n<text x=\"585\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<text x=\"40\" y=\"50\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">Total Cost of Ownership over the whole life<\/text>\n<line x1=\"40\" y1=\"155\" x2=\"620\" y2=\"155\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<text x=\"40\" y=\"175\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#1c5da6\">purchase<\/text>\n<text x=\"620\" y=\"175\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#41617f\">end of life<\/text>\n<\/svg>\n <div class=\"fig-cap\">VfM is achieved through the <strong>widest competition<\/strong> \u2014 optimal description of need, value-engineered specifications, appropriate packaging\/slicing, and the right mode of procurement.<\/div>\n <\/div>\n\n <p class=\"compare-intro\"><strong>The five Fundamental Principles of Public Procurement (1.8)<\/strong> \u2014 GFR 2017, Rule 144 organises every authority's duties into five principles they must abide by and be accountable for.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table\">\n <colgroup><col style=\"width:26%\"><col style=\"width:74%\"><\/colgroup>\n <thead><tr><th>Principle<\/th><th>What it requires<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Transparency<\/td><td>Fairness, equality, competition and appeal rights through <strong>simultaneous, symmetric, unrestricted<\/strong> information; do only what was pre-declared in the published documents; publish on <strong>GeM & CPPP<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Professionalism<\/td><td>Economy, efficiency, effectiveness and integrity; avoid wasteful\/dilatory practices; comply with the <strong>Code of Integrity (CIPP)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Broader Obligations<\/td><td>Social\/economic goals \u2014 Make-in-India, MSE\/weaker-section reservation, Start-up support, and <strong>land-border restrictions under Rule 144(xi)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Extended Legal Responsibilities<\/td><td>Beyond mercantile law \u2014 courts review public procurement as a function of the <strong>State<\/strong>; plus RTI Act, Prevention of Corruption Act, etc.<\/td><\/tr>\n <tr><td class=\"label-cell\">Public Accountability<\/td><td>Answerable to the Legislature, CVC, CAG, CBI; <strong>each transaction<\/strong> scrutinised in isolation; record considerations at every stage (Rule 144(viii)) and retain audit trails.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>Like any Government expenditure, procurement must meet the <strong>Standards (Canons) of Financial Propriety \u2014 Rule 21, GFR 2017<\/strong>:<\/p>\n <ol class=\"parts-list roman gold\">\n <li><strong>Ordinary prudence.<\/strong> Exercise the same vigilance over public money as a person of ordinary prudence would over their own.<\/li>\n <li><strong>Not more than the occasion demands.<\/strong> Expenditure should not prima facie exceed what the occasion requires.<\/li>\n <li><strong>No self-advantage.<\/strong> No authority sanctions expenditure to its own direct or indirect advantage.<\/li>\n <li><strong>No undue favour.<\/strong> No spending for a particular person\/section unless a claim is enforceable in law or it follows a recognised policy\/custom.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c1-infra\">\n <span class=\"section-badge slate\">\u00a7 1.10<\/span>\n <h3>Public procurement infrastructure at the Centre<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">1.10.1<\/div><div class=\"cat-title\">PPD<\/div><p><strong>Procurement Policy Division<\/strong> (DoE) \u2014 drives uniformity through best practices, guidance, manuals and Model Tender Documents. It does <strong>not<\/strong> centralise procurement.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">1.10.2<\/div><div class=\"cat-title\">CPPP<\/div><p><strong>Central Public Procurement Portal<\/strong> (NIC) \u2014 single-point access; <strong>mandatory<\/strong> publication of tenders and contracts; e-publishing + e-procurement modules.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">1.10.3<\/div><div class=\"cat-title\">GeM<\/div><p><strong>Government e-Marketplace<\/strong> \u2014 the National Public Procurement Portal; <strong>paperless, contactless, cashless<\/strong>; mandatory for common-use goods (Rule 149).<\/p><\/div>\n <\/div>\n\n <p>Four statutory bodies provide external oversight of procurement; their reach and powers differ sharply.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:26%\"><col style=\"width:56%\"><\/colgroup>\n <thead><tr><th>Body<\/th><th>Statute<\/th><th>Role & distinctive power<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">CAG<\/td><td>Articles 149\u2013151<\/td><td><strong>Supreme Audit Institution of India<\/strong>; compliance, financial, performance, thematic & IT audits; may inspect any audited office, examine transactions and decide the audit's extent & manner.<\/td><\/tr>\n <tr><td class=\"label-cell\">Lokpal \/ Lokayukta<\/td><td>Lokpal & Lokayukta Act, 2013 (amd. 2016)<\/td><td>Anti-corruption <strong>ombudsman<\/strong>; covers Union Ministers (incl. PM), MPs, public servants and FCRA NGOs above <strong>\u20b910 lakh\/yr<\/strong>; <strong>1 Chair + up to 8 members<\/strong> (4 judicial); may refer cases to the CBI.<\/td><\/tr>\n <tr><td class=\"label-cell\">CVC<\/td><td>CVC Act, 2003<\/td><td>Apex oversight; <strong>recommendatory, no punitive power<\/strong>; has <strong>superintendence over the CBI<\/strong> for PC-Act cases; two Chief Technical Examiners watch procurement; entities appoint a CVO in consultation with CVC.<\/td><\/tr>\n <tr><td class=\"label-cell\">CBI (DSPE)<\/td><td>Delhi Special Police Establishment Act, 1946<\/td><td>Only agency with <strong>police powers<\/strong> (arrest, seizure); prosecutes under the <strong>Prevention of Corruption Act, 1988<\/strong>; needs prior approval to probe officers of <strong>Joint Secretary & above<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-pref\">\n <span class=\"section-badge gold\">\u00a7 1.11<\/span>\n <h3>Reserved items & purchase \/ price preference policies<\/h3>\n <\/div>\n\n <p>The Central Government may, by notification, mandate procurement from a category of bidders or grant <strong>preference<\/strong> to promote local manufacture (<strong>Rule 153, GFR 2017<\/strong>). Any reservation\/preference must appear in the <strong>NIT<\/strong> and Instructions to Bidders. The numbers that drive these policies:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">20%<\/div><div class=\"st-cap\"><strong>Khadi \/ handloom<\/strong> textiles from KVIC & clusters (Rule 153(i))<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">358<\/div><div class=\"st-cap\">Items reserved for <strong>exclusive purchase from MSEs<\/strong> (incl. 8 handicrafts)<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">25%<\/div><div class=\"st-cap\">Min. annual <strong>MSE procurement<\/strong> target (Rule 153(ii))<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">4% \/ 3%<\/div><div class=\"st-cap\">Sub-targets \u2014 <strong>SC\/ST-owned<\/strong> & <strong>women-owned<\/strong> MSEs<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 + 15%<\/div><div class=\"st-cap\"><strong>MSE<\/strong> price band to match L1 (supply up to 25%)<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">50% \/ 20%<\/div><div class=\"st-cap\"><strong>MII local content<\/strong> \u2014 Class-I \/ Class-II minimum<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">L1 + 20%<\/div><div class=\"st-cap\"><strong>MII margin<\/strong> of purchase preference<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b95 L<\/div><div class=\"st-cap\">MII <strong>exemption<\/strong> below this value (no splitting)<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b910 cr<\/div><div class=\"st-cap\">Above this, local content needs a <strong>CA\/cost-auditor certificate<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">45 days<\/div><div class=\"st-cap\">MSMED Act payment limit; delay \u2192 <strong>3\u00d7 RBI bank-rate<\/strong> interest<\/div><\/div>\n <\/div>\n\n <p>The <strong>Make-in-India (MII), Order 2017<\/strong> preference logic depends on whether the lowest bidder (L1) is a Class-I local supplier:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Make-in-India purchase-preference flow \u2014 divisible procurement (1.11.3)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision flow for Make in India purchase preference\">\n<defs><marker id=\"m1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"m2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<polygon points=\"330,30 470,95 330,160 190,95\" fill=\"#fff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"330\" y=\"90\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Is L1 a<\/text>\n<text x=\"330\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Class-I supplier?<\/text>\n<line x1=\"470\" y1=\"95\" x2=\"558\" y2=\"95\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m2)\"\/>\n<text x=\"500\" y=\"86\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#0e8f7a\">YES<\/text>\n<rect x=\"560\" y=\"72\" width=\"92\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"606\" y=\"94\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">Award to<\/text>\n<text x=\"606\" y=\"109\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">L1<\/text>\n<line x1=\"330\" y1=\"160\" x2=\"330\" y2=\"203\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m1)\"\/>\n<text x=\"342\" y=\"185\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">NO<\/text>\n<rect x=\"150\" y=\"208\" width=\"360\" height=\"58\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"232\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Offer Class-I lowest the chance to<\/text>\n<text x=\"330\" y=\"251\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">match L1 (purchase preference)<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Class-II suppliers get no preference.<\/strong> Local content is about value added in India \u2014 <em>not<\/em> the nationality of the firm. A false local-content claim attracts a penalty up to <strong>10% of contract value<\/strong> (contract is not terminated).<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Other preference policies in brief<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">LAND BORDER<\/span><span class=\"nl-text\"><strong>Rule 144(xi)<\/strong> \u2014 bidders from a country sharing a land border with India must be <strong>registered with the competent authority<\/strong>, on national-security grounds (credit-line \/ exempted cases apart).<\/span><\/li>\n <li><span class=\"nl-tag\">START-UP<\/span><span class=\"nl-text\">DPIIT-recognised <strong>Start-ups<\/strong> are exempt from bid security and may get relaxed prior turnover\/experience, subject to meeting quality & technical specifications.<\/span><\/li>\n <li><span class=\"nl-tag\">DMI&SP<\/span><span class=\"nl-text\"><strong>Domestically Manufactured Iron & Steel Products Policy, 2019<\/strong> \u2014 purchase preference for domestic iron & steel, overseen by a Standing Committee under the Ministry of Steel.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-cycle\">\n <span class=\"section-badge red\">\u00a7 1.13–1.14<\/span>\n <h3>The public procurement cycle & the nomenclature conundrum<\/h3>\n <\/div>\n\n <p>Procurement runs as a repeating five-stage cycle: <strong>Need<\/strong> \u2192 <strong>Bid Invitation<\/strong> \u2192 <strong>Evaluate & Award<\/strong> \u2192 <strong>Contract Management<\/strong> \u2192 <strong>Disposal<\/strong>. Each stage is the subject of a later chapter.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The five-stage procurement cycle (1.13)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Circular five-stage procurement cycle\">\n<defs><marker id=\"arc\" markerUnits=\"userSpaceOnUse\" markerWidth=\"11\" markerHeight=\"11\" refX=\"9.5\" refY=\"5.5\" orient=\"auto\"><path d=\"M1 1.5 L9.5 5.5 L1 9.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<circle cx=\"300\" cy=\"205\" r=\"140\" fill=\"none\" stroke=\"#dde6ef\" stroke-width=\"2\" stroke-dasharray=\"3 7\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Procurement<\/text>\n<text x=\"300\" y=\"225\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Cycle<\/text>\n<path d=\"M347.9 73.4 A 140 140 0 0 1 410.3 118.8\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M439.9 209.9 A 140 140 0 0 1 416.1 283.3\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M338.6 339.6 A 140 140 0 0 1 261.4 339.6\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M183.9 283.3 A 140 140 0 0 1 160.1 209.9\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M189.7 118.8 A 140 140 0 0 1 252.1 73.4\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<circle cx=\"300.0\" cy=\"65.0\" r=\"40\" fill=\"#1c5da6\"\/>\n<text x=\"300.0\" y=\"56.5\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">1<\/text>\n<text x=\"300.0\" y=\"70.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Need<\/text>\n<circle cx=\"433.1\" cy=\"161.7\" r=\"40\" fill=\"#0e8f7a\"\/>\n<text x=\"433.1\" y=\"146.7\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">2<\/text>\n<text x=\"433.1\" y=\"160.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Bid<\/text>\n<text x=\"433.1\" y=\"173.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Invitation<\/text>\n<circle cx=\"382.3\" cy=\"318.3\" r=\"40\" fill=\"#c97c10\"\/>\n<text x=\"382.3\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">3<\/text>\n<text x=\"382.3\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Evaluate<\/text>\n<text x=\"382.3\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">& Award<\/text>\n<circle cx=\"217.7\" cy=\"318.3\" r=\"40\" fill=\"#7e3eb5\"\/>\n<text x=\"217.7\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">4<\/text>\n<text x=\"217.7\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Contract<\/text>\n<text x=\"217.7\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Mgmt<\/text>\n<circle cx=\"166.9\" cy=\"161.7\" r=\"40\" fill=\"#c0392b\"\/>\n<text x=\"166.9\" y=\"153.2\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">5<\/text>\n<text x=\"166.9\" y=\"167.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<\/svg>\n <div class=\"fig-cap\">Each stage is detailed in later chapters: Need (Ch 2), Bid Invitation (Ch 5), Evaluation & Award (Ch 7), Contract Management (Ch 9), Disposal (Ch 10).<\/div>\n <\/div>\n\n <div class=\"highlight-box\">\n <div class=\"hl-label\">Nomenclature (1.14)<\/div>\n <div class=\"hl-text\">Indian public procurement mixes American, European and British\/Indian terms. The Manual standardises <strong>\"Tender\"<\/strong> for the <em>tender document \/ process<\/em> published by the procuring entity, and <strong>\"Bid\"<\/strong> for what the <strong>bidder<\/strong> submits \u2014 so \"bidder\" replaces \"tenderer\", without disturbing terms already embedded in CPPP\/GeM (e.g. \"Pre-qualification Bidding\").<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz1\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 1 Quiz \u2014 principles, infrastructure & preferences<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 1. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage1\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c1-recap\">\n <div class=\"recap-title\">⚡ Chapter 1 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Apex statutory anchor<\/td><td><strong>Article 299<\/strong> \u2014 Government contracts in writing by authorised officers<\/td><\/tr>\n <tr><td>Core rules<\/td><td><strong>GFR 2017 (Ch 6\u20139)<\/strong>, DFPR; no exclusive procurement law<\/td><\/tr>\n <tr><td>GeM mandatory<\/td><td>Common-use goods\/services \u2014 <strong>Rule 149, GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Nodal authority<\/td><td><strong>PPD, Department of Expenditure<\/strong><\/td><\/tr>\n <tr><td>Five R's<\/td><td>Right Quality \u00b7 Quantity \u00b7 Price \u00b7 Time & Place \u00b7 Source<\/td><\/tr>\n <tr><td>Value for Money<\/td><td><strong>TCO \/ LCC \/ WOL<\/strong>; price alone is not VfM<\/td><\/tr>\n <tr><td>Five principles<\/td><td>Transparency \u00b7 Professionalism \u00b7 Broader Obligations \u00b7 Extended Legal \u00b7 Public Accountability (<strong>Rule 144<\/strong>)<\/td><\/tr>\n <tr><td>Financial propriety<\/td><td><strong>Rule 21, GFR<\/strong> \u2014 ordinary-prudence test<\/td><\/tr>\n <tr><td>CAG<\/td><td><strong>Articles 149\u2013151<\/strong>; SAII<\/td><\/tr>\n <tr><td>Khadi \/ MSE reservation<\/td><td><strong>20%<\/strong> handloom; <strong>358<\/strong> items exclusive to MSEs<\/td><\/tr>\n <tr><td>MSE purchase target<\/td><td><strong>25%<\/strong> (4% SC\/ST, 3% women); MSE band <strong>L1+15%<\/strong><\/td><\/tr>\n <tr><td>MII local content<\/td><td>Class-I <strong>50%<\/strong>, Class-II <strong>20%<\/strong>; preference margin <strong>20%<\/strong><\/td><\/tr>\n <tr><td>MII exemptions<\/td><td>Below <strong>\u20b95 lakh<\/strong>; CA certificate above <strong>\u20b910 crore<\/strong><\/td><\/tr>\n <tr><td>Procurement cycle<\/td><td>Need \u2192 Bid Invitation \u2192 Evaluation\/Award \u2192 Contract Mgmt \u2192 Disposal<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch2\" data-chapter=\"2\">\n\n <div class=\"chapter-heading-block\" id=\"c2-need\">\n <span class=\"chapter-badge\">CH 2 \u00b7 NEED & PLANNING<\/span>\n <h2>Need Assessment, Specifications & Procurement Planning<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Where procurement begins (2.1)<\/div>\n <div class=\"def-text\">\n Procurement should be initiated <strong>only on an indent<\/strong> from the user Department (Annexure 5). The indenting authority first determines the <strong>need and anticipated quantum<\/strong>. A clear description and specification of need is of fundamental importance to value for money, transparency, competition and a level playing field \u2014 and the user department must <strong>retain all documents<\/strong> on the determination and the technical\/financial\/budgetary approvals.\n <\/div>\n <\/div>\n\n <p>Six matters are settled during the need-assessment stage, each feeding into the indent:<\/p>\n\n <p>Need assessment settles six questions before a tender is floated:<\/p>\n <ol class=\"parts-list decimal teal\">\n <li><strong>Description<\/strong> \u2014 what is needed, by generic description and not by brand name.<\/li>\n <li><strong>Method<\/strong> \u2014 whether to own, lease, hire, or buy it as a service.<\/li>\n <li><strong>Quantity<\/strong> \u2014 how much, in the proper unit of measure.<\/li>\n <li><strong>Time & Place<\/strong> \u2014 when and where it is required, planned well in advance.<\/li>\n <li><strong>Specifications<\/strong> \u2014 the technical specification (covered in 2.2).<\/li>\n <li><strong>Cost Estimate<\/strong> \u2014 a realistic, objective estimate of value.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">What need assessment must decide (2.1)<\/div>\n <svg viewBox=\"0 0 600 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Hub and spoke of the six need-assessment decisions\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"56.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"123.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"324.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"123.0\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"190\" r=\"58\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"186\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">NEED<\/text>\n<text x=\"300\" y=\"205\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#cfe0f2\">assessment<\/text>\n<rect x=\"221.0\" y=\"33.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"61.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#1c5da6\">Description<\/text>\n<rect x=\"337.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#0e8f7a\">Method<\/text>\n<rect x=\"337.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c97c10\">Quantity<\/text>\n<rect x=\"221.0\" y=\"301.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"329.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#7e3eb5\">Time & Place<\/text>\n<rect x=\"105.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c0392b\">Specifications<\/text>\n<rect x=\"105.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#41617f\">Cost Estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Except for proprietary single-source purchase, avoid brand \/ trade names; where unavoidable, add the words <strong>\"or substantially equivalent\"<\/strong>. Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight, not length).<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-cost\">\n <span class=\"section-badge slate\">\u00a7 2.1(f)<\/span>\n <h3>Estimation of cost<\/h3>\n <\/div>\n\n <p>The estimated cost is vital for approvals and for judging the reasonableness of bid prices, so it must be worked out <strong>realistically and objectively<\/strong>. The methods are neither mandatory nor ranked \u2014 <strong>triangulating<\/strong> several gives a more accurate estimate. Which one fits depends on what data exists:<\/p>\n\n <p>A realistic estimate is built, in order of preference, from: <strong>market price discovery<\/strong>; the <strong>Last Purchase Price<\/strong> updated for quantity, time and terms; <strong>budgetary or catalogue rates<\/strong>; and, failing these, indices and a professional estimate.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Choosing a cost-estimation method (2.1(f))<\/div>\n <svg viewBox=\"0 0 660 270\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision ladder for cost estimation methods\">\n<rect x=\"60\" y=\"30\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"30\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#1c5da6\"\/>\n<circle cx=\"92\" cy=\"53.0\" r=\"14\" fill=\"#1c5da6\"\/>\n<text x=\"92\" y=\"58.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"120\" y=\"58.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Market price discovery<\/text>\n<rect x=\"60\" y=\"88\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"88\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<circle cx=\"92\" cy=\"111.0\" r=\"14\" fill=\"#0e8f7a\"\/>\n<text x=\"92\" y=\"116.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"120\" y=\"116.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Last Purchase Price + update<\/text>\n<rect x=\"60\" y=\"146\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"146\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#c97c10\"\/>\n<circle cx=\"92\" cy=\"169.0\" r=\"14\" fill=\"#c97c10\"\/>\n<text x=\"92\" y=\"174.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"120\" y=\"174.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Budgetary \/ catalogue rates<\/text>\n<rect x=\"60\" y=\"204\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"204\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#41617f\"\/>\n<circle cx=\"92\" cy=\"227.0\" r=\"14\" fill=\"#41617f\"\/>\n<text x=\"92\" y=\"232.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"120\" y=\"232.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Indices & professional estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Budgetary quotes are <strong>not<\/strong> exact estimates: a bidder expecting shortlisting may quote high, one not expecting it may quote abnormally low. Where fewer than three arrive, average those received.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-spec\">\n <span class=\"section-badge amber\">\u00a7 2.2<\/span>\n <h3>Formulation of Technical Specifications (TS)<\/h3>\n <\/div>\n\n <p>Specifications are the <strong>benchmarks<\/strong> against which technical responsiveness is verified and bids evaluated (<strong>Rule 173(ix), GFR 2017<\/strong>). Well-defined TS help bidders prepare responsive bids and the entity compare them, and they safeguard quality. A good specification must:<\/p>\n\n <ol class=\"parts-list decimal amber\">\n <li><strong>Ensure a level playing field<\/strong> and the widest competition; be unambiguous, precise, objective, functional, broad-based\/generic, standardised and measurable.<\/li>\n <li><strong>Cover only the bare essential<\/strong> technical, qualitative and performance characteristics \u2014 no superfluous features causing unwarranted expenditure.<\/li>\n <li><strong>Rest on BIS standards<\/strong> where they exist (preference to BIS-marked goods); international standards only in their absence, with deviations recorded in writing.<\/li>\n <li><strong>Use metric units<\/strong> for all dimensions (FPS equivalents shown only if unavoidable).<\/li>\n <li><strong>Require new, unused, current models<\/strong> incorporating recent design and material improvements \u2014 avoiding obsolete goods, unless otherwise provided.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-green\">\n <span class=\"section-badge teal\">\u00a7 2.2.8<\/span>\n <h3>Green procurement, Ecomark & energy-efficiency labels<\/h3>\n <\/div>\n\n <p>Specifications should comply with <strong>sustainability criteria<\/strong> and pollution-control rules, prefer low-impact packaging, and may require the <strong>Ecomark Label<\/strong> under the <strong>Ecomark Certification Rules, 2023<\/strong> \u2014 supporting the principle of <strong>LiFE (Lifestyle for Environment)<\/strong>. Energy efficiency is signalled by the BEE star system:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">1 Mar 2002<\/div><div class=\"st-cap\"><strong>BEE<\/strong> set up under the Energy Conservation Act, 2001<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">34 \/ 11<\/div><div class=\"st-cap\">Appliances covered \/ for which <strong>labelling is mandatory<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">5\u2605 AC<\/div><div class=\"st-cap\">Split AC threshold (usage >1000 hrs\/yr; <strong>3\u2605<\/strong> if limited)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4\u2605 fridge<\/div><div class=\"st-cap\">Frost-free refrigerator threshold rating<\/div><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">BEE star rating \u2014 the higher the stars, the more efficient<\/div>\n <svg viewBox=\"0 0 660 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Five star energy efficiency meter\">\n<rect x=\"80\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#cfe8d8\"\/>\n<text x=\"124.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★<\/text>\n<rect x=\"176\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#9ed4b3\"\/>\n<text x=\"220.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★★<\/text>\n<rect x=\"272\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#5cb98a\"\/>\n<text x=\"316.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">3★<\/text>\n<rect x=\"368\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#2a9d6a\"\/>\n<text x=\"412.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">4★<\/text>\n<rect x=\"464\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<text x=\"508.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">5★<\/text>\n<text x=\"80\" y=\"52\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">BEE star rating \u2014 more stars = more energy-efficient<\/text>\n<text x=\"80\" y=\"158\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"700\" fill=\"#0e8f7a\">Higher rating, lower running cost →<\/text>\n<\/svg>\n <div class=\"fig-cap\">Specifications should emphasise efficiency, optimum fuel\/power use, environmentally friendly materials, reduced noise\/emissions and low maintenance cost.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-sanction\">\n <span class=\"section-badge purple\">\u00a7 2.3<\/span>\n <h3>Technical, administrative & budgetary sanctions and indents<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Raise the indent<\/div><div class=\"fs-text\">User department submits a <strong>Purchase Requisition<\/strong> (Annexure 5), allowing adequate procurement time.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Certify funds<\/div><div class=\"fs-text\">Certify <strong>budget availability<\/strong> and note the liability against the available budget before approval.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Approve \/ urgency<\/div><div class=\"fs-text\">Approve per the Schedule of Powers (Annexure 4); a short lead time needs an <strong>urgency certificate<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Monitor<\/div><div class=\"fs-text\">Indentor and procuring authority track progress through registers (Annexures 6 & 7).<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-risk1\">\n <span class=\"section-badge red\">\u00a7 2.4<\/span>\n <h3>Need assessment & specification \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Need <strong>artificially created or exaggerated<\/strong> to channel benefit to a person\/organisation.<\/td><td>Keep records of decisions and data; involve <strong>procurement and finance functions<\/strong>; consult end-users and stakeholders.<\/td><\/tr>\n <tr><td><strong>Delays<\/strong> in need assessment \/ indent generation force shortcut procedures that dilute transparency and VfM.<\/td><td>Assess need <strong>well in advance<\/strong>; for urgent cases record justification and obtain an urgency certificate from the competent authority.<\/td><\/tr>\n <tr><td><strong>Inadequate cost estimate<\/strong> causes poor bidder response, delays or quality loss.<\/td><td>Prepare estimates with <strong>due diligence<\/strong>, factoring inflation, technology change and profit margins.<\/td><\/tr>\n <tr><td><strong>Subjective specifications<\/strong> (e.g. sample-based evaluation) invite allegations of corruption.<\/td><td>Display a <strong>stock sample<\/strong> for indeterminable parameters (shade, finish, workmanship); require a <strong>pre-production sample<\/strong> before bulk clearance.<\/td><\/tr>\n <tr><td>Specifications <strong>tilted to favour<\/strong> a vendor; or <strong>asymmetric<\/strong> sharing of need information.<\/td><td>Use a formal market-discovery tool \u2014 a <strong>pre-bid conference and\/or well-publicised EoI<\/strong>; invite comments on the conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c2-plan\">\n <span class=\"section-badge blue\">\u00a7 2.5<\/span>\n <h3>Procurement planning<\/h3>\n <\/div>\n\n <p>After the indent, the procuring entity makes the decisions that turn a need into a tender. Three numbers anchor the discipline:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 144(x)<\/div><div class=\"st-cap\">Publish the <strong>Annual Procurement Plan<\/strong> on GeM\/CPPP \u2014 not an initiation of procurement<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">10 days<\/div><div class=\"st-cap\">Working days to <strong>review the indent<\/strong> for completeness, funding & VfM<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 157<\/div><div class=\"st-cap\">Normally <strong>do not split\/package<\/strong> to limit competition or avoid sanction<\/div><\/div>\n <\/div>\n\n <ol class=\"parts-list decimal\">\n <li><strong>Reassess quantity & packaging\/slicing.<\/strong> Division is allowed only for reasons recorded in writing \u2014 efficiency, economy, timely supply, wider competition or <strong>MSE access<\/strong>.<\/li>\n <li><strong>Declare any participation limits<\/strong> as per the Government's preference policy; lay down only reasonable, justifiable eligibility\/pre-qualification criteria.<\/li>\n <li><strong>Select the tendering system<\/strong> (single\/two stage, single\/two bid) and the <strong>mode of procurement<\/strong> (open \/ limited \/ single tender, reverse auction).<\/li>\n <li><strong>Declare timeframes<\/strong> for each stage from tender to contract (Rule 144(ix)), and prepare an <strong>integrated annual procurement plan<\/strong> staggering loads across the year.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-cartel\">\n <span class=\"section-badge slate\">\u00a7 2.5.1<\/span>\n <h3>Mitigating cartels & strategising large procurement<\/h3>\n <\/div>\n\n <p>Need assessment and procurement planning is the main stage at which <strong>cartel formation<\/strong> can be addressed \u2014 by widening the field and varying the pattern bidders rely on:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Widen the field<\/div><div class=\"cat-title\">More suppliers<\/div><p>Encourage new firms to register; review tailor-made specifications so commercially available alternatives qualify; consider substitutes.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Watch the venue<\/div><div class=\"cat-title\">Pre-bid caution<\/div><p>Pre-bid conferences can <strong>facilitate collusion<\/strong> \u2014 hold them virtually where feasible, though they remain useful for turnkey or costly equipment.<\/p><\/div>\n <div class=\"cat-card e\"><div class=\"cat-label\">Break the pattern<\/div><div class=\"cat-title\">Vary year-on-year<\/div><p>Change the <strong>mode<\/strong> (OTE\u2194LTE, GTE\u2194OTE), the <strong>quantity<\/strong> (package\/slice\/club items) and the <strong>pre-qualification criteria<\/strong>.<\/p><\/div>\n <\/div>\n\n <p>Large procurements need market research before rules are applied \u2014 the parameters worth studying are production capacity vs demand, the <strong>volume<\/strong> of the requirement relative to the market (would clubbing raise bargaining power?), the level of <strong>competition<\/strong> and cartelisation, <strong>supply-chain<\/strong> constraints (raw materials, logistics, geopolitics), specification variations, and <strong>pricing trends\/seasonality<\/strong>.<\/p>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Procurement planning \u2014 the headline risk (2.5.2)<\/div>\n <p><strong>Packaging, bundling or slicing<\/strong> done to avoid or reduce open competition \u2014 or a package so large that MSEs cannot participate \u2014 is the chief planning risk. The mitigation is a <strong>clear written policy<\/strong> for packaging\/bundling, with EMD affordability kept in view and bidders allowed to <strong>bid for slices<\/strong> against proportional EMD.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz2\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 2 Quiz \u2014 need, specifications & planning<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 2. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage2\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c2-recap\">\n <div class=\"recap-title\">⚡ Chapter 2 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Trigger for procurement<\/td><td>An <strong>indent<\/strong> from the user Department (Annexure 5)<\/td><\/tr>\n <tr><td>Brand names<\/td><td>Avoid; if unavoidable add <strong>\"or substantially equivalent\"<\/strong><\/td><\/tr>\n <tr><td>Units of purchase<\/td><td>Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight)<\/td><\/tr>\n <tr><td>Cost estimation<\/td><td><strong>Triangulate<\/strong>; budgetary quotes ideally <strong>three<\/strong> (10\u201321 days)<\/td><\/tr>\n <tr><td>Specifications standard<\/td><td>Based on <strong>BIS<\/strong>; prefer BIS-marked goods; metric units<\/td><\/tr>\n <tr><td>Specs rule reference<\/td><td><strong>Rule 173(ix), GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Energy labels (BEE)<\/td><td>BEE since <strong>1 Mar 2002<\/strong>; Split AC <strong>5\u2605<\/strong>, fridge <strong>4\u2605<\/strong><\/td><\/tr>\n <tr><td>Green label<\/td><td><strong>Ecomark Rules 2023<\/strong>; principle of LiFE<\/td><\/tr>\n <tr><td>Sanction prerequisite<\/td><td>Certify <strong>budget availability<\/strong>; urgency certificate if short lead<\/td><\/tr>\n <tr><td>Annual Procurement Plan<\/td><td><strong>Rule 144(x)<\/strong>; not a procurement initiation<\/td><\/tr>\n <tr><td>Review window<\/td><td><strong>10 working days<\/strong> to review the indent<\/td><\/tr>\n <tr><td>No splitting<\/td><td><strong>Rule 157, GFR 2017<\/strong> \u2014 except for recorded reasons (incl. MSE access)<\/td><\/tr>\n <tr><td>Cartel mitigation<\/td><td>Best at planning \u2014 vary mode, quantity & criteria<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch3\" data-chapter=\"3\">\n\n <div class=\"chapter-heading-block\" id=\"c3-srm\">\n <span class=\"chapter-badge\">CH 3 \u00b7 SUPPLIER RELATIONS<\/span>\n <h2>Supplier Relationship Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What SRM covers (3.1)<\/div>\n <div class=\"def-text\">\n Supplier Relationship Management binds the supply side to ethical conduct and keeps the supplier base healthy. It has three functions: ensuring suppliers <strong>comply with the Code of Integrity and Integrity Pact (CIPP)<\/strong> where stipulated; <strong>removing<\/strong> firms from the registered list and <strong>debarring<\/strong> them where warranted; and <strong>developing new sources<\/strong> and registering suppliers.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-cipp\">\n <span class=\"section-badge red\">\u00a7 3.2<\/span>\n <h3>Code of Integrity for Public Procurement (CIPP)<\/h3>\n <\/div>\n\n <p>Public procurement is prone to corruption and ethical risk, so both procuring officials and bidders\/suppliers must observe the highest standard of ethics (<strong>Rule 175, GFR 2017<\/strong>). Officials sign periodic declarations; bidders declare adherence in registration and tender documents, with a warning of punitive action. The code forbids seven prohibited practices:<\/p>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The seven prohibited practices under the Code of Integrity (3.2)<\/div>\n <svg viewBox=\"0 0 640 470\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Seven prohibited practices under the Code of Integrity\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"320\" y1=\"225\" x2=\"320.0\" y2=\"67.0\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"443.5\" y2=\"126.5\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"474.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"388.6\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"251.4\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"166.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"196.5\" y2=\"126.5\"\/>\n<\/g>\n<circle cx=\"320\" cy=\"225\" r=\"60\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"219\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">CODE OF<\/text>\n<text x=\"320\" y=\"235\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">INTEGRITY<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#ffd95a\">Rule 175<\/text>\n<circle cx=\"320.0\" cy=\"67.0\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"320.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Corrupt<\/text>\n<circle cx=\"443.5\" cy=\"126.5\" r=\"48\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"443.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c97c10\">Fraudulent<\/text>\n<circle cx=\"474.0\" cy=\"260.2\" r=\"48\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"474.0\" y=\"265.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">Anti-competitive<\/text>\n<circle cx=\"388.6\" cy=\"367.4\" r=\"48\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"388.6\" y=\"372.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">Coercive<\/text>\n<circle cx=\"251.4\" cy=\"367.4\" r=\"48\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"251.4\" y=\"363.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Conflict of<\/text>\n<text x=\"251.4\" y=\"379.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Interest<\/text>\n<circle cx=\"166.0\" cy=\"260.2\" r=\"48\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2.5\"\/>\n<text x=\"166.0\" y=\"256.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Undue<\/text>\n<text x=\"166.0\" y=\"272.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Advantage<\/text>\n<circle cx=\"196.5\" cy=\"126.5\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"196.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Obstructive<\/text>\n<\/svg>\n <div class=\"fig-cap\">Voluntary disclosure of a <strong>conflict of interest<\/strong> or a past transgression does not mean automatic disqualification \u2014 the procuring entity may evaluate it and take mitigation steps.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal red\">\n <li><strong>Corrupt practice<\/strong> \u2014 offering, giving or accepting any gratification, gift or reward to influence an official act.<\/li>\n <li><strong>Fraudulent practice<\/strong> \u2014 any misrepresentation or omission of facts to influence a process or contract.<\/li>\n <li><strong>Anti-competitive practice<\/strong> \u2014 collusion, bid-rigging or any arrangement among bidders under the Competition Act, 2002.<\/li>\n <li><strong>Coercive practice<\/strong> \u2014 harming or threatening persons or property to influence participation or conduct.<\/li>\n <li><strong>Conflict of interest<\/strong> \u2014 a bidder's interest that conflicts with fair performance of the contract.<\/li>\n <li><strong>Undue advantage<\/strong> \u2014 taking improper benefit of leaked or privileged information.<\/li>\n <li><strong>Obstructive practice<\/strong> \u2014 concealing or destroying evidence, or impeding an inquiry, inspection or audit.<\/li>\n <\/ol>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Proactive disclosures a bidder must make<\/div>\n <ul class=\"note-list slate\">\n <li><span class=\"nl-tag\">COI<\/span><span class=\"nl-text\">Suo-moto declare any <strong>conflict of interest<\/strong>, pre-existing or arising at any stage of the process or contract execution.<\/span><\/li>\n <li><span class=\"nl-tag\">3 YRS<\/span><span class=\"nl-text\">Declare any <strong>previous transgressions<\/strong> of the code with any entity in any country in the last <strong>three years<\/strong>, or any debarment by another procuring entity.<\/span><\/li>\n <li><span class=\"nl-tag\">AGENTS<\/span><span class=\"nl-text\">Disclose any <strong>commissions or fees<\/strong> paid (or to be paid) to agents\/representatives \u2014 name, address, amount, currency and purpose.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"compare-intro\"><strong>Punitive provisions<\/strong> escalate with how far the contract has progressed:<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:34%\"><col style=\"width:66%\"><\/colgroup>\n <thead><tr><th>Stage<\/th><th>Measures the procuring entity may take<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Bid under consideration<\/td><td>Forfeiture\/encashment of <strong>bid security<\/strong>; calling off pre-contract negotiations; <strong>rejection and exclusion<\/strong> from the process.<\/td><\/tr>\n <tr><td class=\"label-cell\">Contract already awarded<\/td><td><strong>Cancellation<\/strong> and recovery of loss; forfeiture of other security\/bond; recovery of payments (incl. advances) with interest.<\/td><\/tr>\n <tr><td class=\"label-cell\">In addition<\/td><td>Removal from the registered list \/ <strong>debarment for not less than six months<\/strong>; anti-competitive practice reported to the <strong>Competition Commission of India<\/strong> (by a Joint-Secretary-level officer); disciplinary or criminal proceedings.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-pact\">\n <span class=\"section-badge teal\">\u00a7 3.3<\/span>\n <h3>Integrity Pact<\/h3>\n <\/div>\n\n <p>The <strong>Pre-bid Integrity Pact<\/strong> binds both buyer and sellers to ethical conduct and transparency across the whole contract \u2014 removing a bidder's fear that, while it abjures bribery, a competitor may bribe and win. Ministries incorporate it (with the Minister-in-charge's approval) for procurements above a chosen threshold.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">80\u201390%<\/div><div class=\"st-cap\">By value, the Integrity Pact threshold should cover the <strong>bulk of annual procurement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">PSBs \u00b7 PSICs \u00b7 FIs<\/div><div class=\"st-cap\">Per CVC's revised SOP, these must also adopt the Integrity Pact<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">IEM<\/div><div class=\"st-cap\">Independent External Monitors appointed by CVC oversee the Pact<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-grievance\">\n <span class=\"section-badge purple\">\u00a7 3.4<\/span>\n <h3>Grievances and their redressal<\/h3>\n <\/div>\n\n <p>Tender documents must carry a grievance-redressal clause. Only a <strong>directly affected bidder<\/strong> who participated in the relevant stage can represent \u2014 and only on the stage they qualified in.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Grievance-redressal timeline (3.4)<\/div>\n <svg viewBox=\"0 0 660 150\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Grievance redressal timeline\">\n<defs><marker id=\"tl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<line x1=\"110\" y1=\"80\" x2=\"598\" y2=\"80\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#tl)\"\/>\n<circle cx=\"130\" cy=\"80\" r=\"15\" fill=\"#10243f\"\/>\n<text x=\"130\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#10243f\">Day 0<\/text>\n<text x=\"130\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">decision<\/text>\n<circle cx=\"330\" cy=\"80\" r=\"15\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">5 days<\/text>\n<text x=\"330\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">seek review<\/text>\n<circle cx=\"520\" cy=\"80\" r=\"15\" fill=\"#0e8f7a\"\/>\n<text x=\"520\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">30 days<\/text>\n<text x=\"520\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">redress & close<\/text>\n<\/svg>\n <div class=\"fig-cap\">This route is <strong>in addition to<\/strong> complaints to the organisation's vigilance department.<\/div>\n <\/div>\n\n <p>Several decisions are taken in good faith under internal guidelines and are <strong>not open to review<\/strong>: the determination of need; the choice of mode of procurement or tendering system; the choice of selection procedure; specifications (except where vague or too restrictive); participation limits and purchase-preference under Government policy; the decision to negotiate with L1; and cancellation of the process (unless it will be re-tendered). Contract-ambiguity issues must be raised <strong>before<\/strong> the contract is signed.<\/p>\n\n <div class=\"section-heading-block\" id=\"c3-conduct\">\n <span class=\"section-badge amber\">\u00a7 3.5<\/span>\n <h3>Conduct of public servants \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>Hospitality<\/strong> from suppliers beyond laid-down limits.<\/td><td>Decline; record and report hospitality; follow conduct-rule limits.<\/td><\/tr>\n <tr><td><strong>Gifts<\/strong> from suppliers tending to influence decisions.<\/td><td>Refuse gifts beyond permissible value; disclose under conduct rules.<\/td><\/tr>\n <tr><td><strong>Private purchases<\/strong> from official suppliers at concessional terms.<\/td><td>Avoid private dealings with firms one deals with officially.<\/td><\/tr>\n <tr><td><strong>Sponsorship<\/strong> of events by prospective suppliers.<\/td><td>Avoid accepting sponsorship that could compromise impartiality.<\/td><\/tr>\n <tr><td><strong>Conflict of interest<\/strong> \u2014 officers related to or financially linked with a bidder.<\/td><td>Declare relationships; exclude conflicted officers from need-determination, tender-document and evaluation roles.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-register\">\n <span class=\"section-badge blue\">\u00a7 3.6<\/span>\n <h3>Registration, empanelment & pre-qualification<\/h3>\n <\/div>\n\n <p>These three shortlisting devices differ in rigour and purpose (<strong>Rule 150, GFR 2017<\/strong>):<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Identity<\/div><div class=\"cat-title\">Registration<\/div><p>Establishes <strong>genuine identification<\/strong> of a firm (e.g. for e-procurement); based on less-rigorous checks of capability and past experience.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Capability<\/div><div class=\"cat-title\">Empanelment<\/div><p>Establishes <strong>prima-facie capability<\/strong> for restricted tendering \u2014 not open tendering.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Per tender<\/div><div class=\"cat-title\">Pre-qualification<\/div><p>Rigorous, tender-specific shortlisting through <strong>wide publicity<\/strong> where the requirement dictates strong qualification criteria.<\/p><\/div>\n <\/div>\n\n <p>Registration is granted for specific trade groups, valid <strong>one to three years<\/strong> (provisional until the firm satisfactorily executes one order), with a unique registration number and EMD exemption within prescribed monetary limits. Registration grades by order value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\" style=\"--x:1\"><div class=\"st-num\">Grade A<\/div><div class=\"st-cap\">Orders <strong>Rs 25 lakh and above<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Grade B<\/div><div class=\"st-cap\"><strong>Rs 5 lakh \u2013 Rs 25 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Grade C<\/div><div class=\"st-cap\"><strong>Rs 1 lakh \u2013 Rs 5 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">3 \/ 6<\/div><div class=\"st-cap\">Removed if no response to <strong>3 tenders\/yr<\/strong> despite <strong>6 invitations<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-debar\">\n <span class=\"section-badge red\">\u00a7 3.7<\/span>\n <h3>Debarment of suppliers<\/h3>\n <\/div>\n\n <p>Eligibility to bid depends on integrity and performance. Debarment (\"banning\", \"suspension\", \"black-listing\" all mean the same) follows two tracks under the GFR and the PPD guidelines \u2014 always after a <strong>reasonable opportunity to represent<\/strong>:<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:40%\"><col style=\"width:36%\"><\/colgroup>\n <thead><tr><th>Trigger<\/th><th>Ground<\/th><th>Period<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Conviction (Rule 151)<\/td><td>Convicted under the <strong>Prevention of Corruption Act, 1988<\/strong> or IPC for loss of life\/property in a procurement contract.<\/td><td>Debarred up to <strong>3 years<\/strong> from the date of debarment.<\/td><\/tr>\n <tr><td class=\"label-cell\">Single Ministry\/Dept<\/td><td>Transgression warranting debarment within one Ministry's jurisdiction.<\/td><td>Up to <strong>2 years<\/strong>; effective from upload to the website.<\/td><\/tr>\n <tr><td class=\"label-cell\">Across all Ministries<\/td><td>Serious cases referred to \/ acted on by DoE.<\/td><td>Up to <strong>3 years<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile red\"><div class=\"st-num\">12 weeks<\/div><div class=\"st-cap\">Target time from zero-day to start of the <strong>debarment period<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Executive<\/div><div class=\"st-cap\">Debarment is an executive function \u2014 <strong>not<\/strong> allocated to Vigilance<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">GeM \u00b7 2 yrs<\/div><div class=\"st-cap\">GeM may debar bidders for up to <strong>2 years<\/strong> on its portal<\/div><\/div>\n <\/div>\n\n <p>Indian agents who wish to quote directly on behalf of foreign principals may be <strong>enlisted<\/strong> by Ministries\/Departments where required (<strong>Rule 152, GFR 2017<\/strong>) \u2014 section 3.8.<\/p>\n\n \n <div class=\"ix\" id=\"quiz3\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 3 Quiz \u2014 integrity, grievances & debarment<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 3. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage3\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c3-recap\">\n <div class=\"recap-title\">⚡ Chapter 3 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>SRM functions<\/td><td>CIPP compliance \u00b7 removal\/debarment \u00b7 new-source development<\/td><\/tr>\n <tr><td>Code of Integrity<\/td><td><strong>Rule 175, GFR 2017<\/strong>; seven prohibited practices<\/td><\/tr>\n <tr><td>Prohibited practices<\/td><td>Corrupt \u00b7 Fraudulent \u00b7 Anti-competitive \u00b7 Coercive \u00b7 COI \u00b7 Undue Advantage \u00b7 Obstructive<\/td><\/tr>\n <tr><td>Transgression disclosure<\/td><td>Last <strong>3 years<\/strong>, any entity\/country<\/td><\/tr>\n <tr><td>CIPP min. debarment<\/td><td><strong>Not less than 6 months<\/strong><\/td><\/tr>\n <tr><td>Integrity Pact coverage<\/td><td><strong>80\u201390%<\/strong> of annual procurement by value<\/td><\/tr>\n <tr><td>Grievance \u2014 review<\/td><td>Within <strong>5 days<\/strong>; post-award close within <strong>30 days<\/strong><\/td><\/tr>\n <tr><td>Registration rule<\/td><td><strong>Rule 150<\/strong>; valid <strong>1\u20133 years<\/strong>; Grades A\/B\/C<\/td><\/tr>\n <tr><td>Debarment \u2014 conviction<\/td><td><strong>Rule 151<\/strong>; up to <strong>3 years<\/strong><\/td><\/tr>\n <tr><td>Debarment \u2014 Ministry \/ DoE<\/td><td><strong>2 years<\/strong> (single) \/ <strong>3 years<\/strong> (across all)<\/td><\/tr>\n <tr><td>Indian agents<\/td><td>Enlisted under <strong>Rule 152<\/strong><\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch4\" data-chapter=\"4\">\n\n <div class=\"chapter-heading-block\" id=\"c4-modes\">\n <span class=\"chapter-badge\">CH 4 \u00b7 MODES & TENDERING<\/span>\n <h2>Modes of Procurement & Tendering Systems<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Choosing how to buy (4.1)<\/div>\n <div class=\"def-text\">\n Offers must be invited by a procedure that balances the <strong>widest competition<\/strong> against the complexity, time, effort and cost of the procedure. Different modes vary the width and specificity of the bidder catchment to suit the situation \u2014 the mode of procurement is the <strong>\"Right Source\"<\/strong> of the Five R's. Powers to approve each mode are delegated through the DFPR and each entity's Schedule of Procurement Powers (SoPP).\n <\/div>\n <\/div>\n\n <p>All modes fall into five families, arranged from the widest competition to single source:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Advertised<\/strong> (Rule 161) \u2014 OTE, GTE, Rate Contract and electronic Reverse Auction.<\/li>\n <li><strong>Pre-Qualification<\/strong> \u2014 Pre-Qualification Bidding and the Approved Vendor List.<\/li>\n <li><strong>Restricted<\/strong> (Rule 162) \u2014 Limited Tender (LTE) and Special LTE.<\/li>\n <li><strong>Nomination<\/strong> (Rule 166) \u2014 Proprietary Article Certificate (PAC) and Single Tender Enquiry \u2014 single source.<\/li>\n <li><strong>Shopping<\/strong> (Rules 154\u2013155) \u2014 direct purchase and the Purchase Committee.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The five families of procurement mode (4.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Spectrum of procurement modes from widest competition to single source\">\n<defs><marker id=\"sp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#sp)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">WIDEST COMPETITION<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">SINGLE SOURCE<\/text>\n<rect x=\"26.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#1c5da6\"\/>\n<text x=\"86.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">ADVERTISED<\/text>\n<text x=\"86.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 161<\/text>\n<rect x=\"158.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#0e8f7a\"\/>\n<text x=\"218.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">PRE-QUAL<\/text>\n<text x=\"218.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">shortlist<\/text>\n<rect x=\"290.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c97c10\"\/>\n<text x=\"350.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">RESTRICTED<\/text>\n<text x=\"350.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 162<\/text>\n<rect x=\"422.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#7e3eb5\"\/>\n<text x=\"482.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">NOMINATION<\/text>\n<text x=\"482.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 166<\/text>\n<rect x=\"554.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c0392b\"\/>\n<text x=\"614.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">SHOPPING<\/text>\n<text x=\"614.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 154\/155<\/text>\n<\/svg>\n <div class=\"fig-cap\">Advertised modes seek the widest competition through wide publicity; nomination and shopping modes sit at the single-source end for special or small-value needs.<\/div>\n <\/div>\n\n <p>For routine goods, the mode is driven largely by <strong>value<\/strong>. The thresholds form a ladder from petty purchase to open tender:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Value thresholds \u2192 mode of procurement<\/div>\n <svg viewBox=\"0 0 660 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Value threshold ladder mapping procurement value to mode\">\n<defs><marker id=\"up\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"300\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up)\"\/>\n<text x=\"24\" y=\"165\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 165)\">higher value<\/text>\n<rect x=\"62\" y=\"30\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#1c5da6\"\/>\n<text x=\"84\" y=\"57\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Above Rs 50 lakh<\/text>\n<text x=\"84\" y=\"78\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Open Tender (OTE) \u2014 default<\/text>\n<text x=\"624\" y=\"57\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#1c5da6\">Rule 161<\/text>\n<rect x=\"62\" y=\"102\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"102\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"129\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Up to Rs 50 lakh<\/text>\n<text x=\"84\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender (LTE)<\/text>\n<text x=\"624\" y=\"129\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">Rule 162<\/text>\n<rect x=\"62\" y=\"174\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"174\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"201\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Rs 50k \u2013 Rs 5 lakh<\/text>\n<text x=\"84\" y=\"222\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Purchase Committee<\/text>\n<text x=\"624\" y=\"201\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">Rule 155<\/text>\n<rect x=\"62\" y=\"246\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"246\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#41617f\"\/>\n<text x=\"84\" y=\"273\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#41617f\">Up to Rs 50,000<\/text>\n<text x=\"84\" y=\"294\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Direct (petty) purchase<\/text>\n<text x=\"624\" y=\"273\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#41617f\">Rule 154<\/text>\n<\/svg>\n <div class=\"fig-cap\">Scientific Ministries\/Departments enjoy enhanced limits \u2014 petty purchase up to <strong>Rs 1 lakh<\/strong> and Purchase Committee up to <strong>Rs 10 lakh<\/strong>. A requirement must never be split to dodge a threshold.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-advertised\">\n <span class=\"section-badge blue\">\u00a7 4.2–4.5<\/span>\n <h3>Advertised modes \u2014 OTE, GTE, Rate Contract & eRA<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:20%\"><col style=\"width:30%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>When used<\/th><th>Key features<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Open Tender Enquiry (OTE)<\/td><td>Procurements <strong>above Rs 50 lakh<\/strong>; the <strong>default mode<\/strong> (Rule 161).<\/td><td>Widest competition; NIT on <strong>GeM & CPPP<\/strong>; no prior registration insisted; tender documents <strong>free to download<\/strong>; best VfM but relatively complex.<\/td><\/tr>\n <tr><td class=\"label-cell\">Global Tender Enquiry (GTE)<\/td><td>When foreign sourcing is needed.<\/td><td><strong>No GTE up to Rs 200 crore<\/strong> without approval of the DoE-designated competent authority; foreign bidders may quote in foreign currency; e-procurement not mandatorily insisted.<\/td><\/tr>\n <tr><td class=\"label-cell\">Rate Contract \/ Framework Agreement<\/td><td>Common, repetitively-used items of standard specification.<\/td><td>Agreement on <strong>rate<\/strong>; <strong>no quantity<\/strong> mentioned or guaranteed; either party may withdraw on notice; supply orders placed during validity.<\/td><\/tr>\n <tr><td class=\"label-cell\">Electronic Reverse Auction (eRA)<\/td><td>Dynamic price discovery where specifications are firm.<\/td><td>Bidders compete by <strong>lowering prices<\/strong> in real time; available on GeM.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c4-restricted\">\n <span class=\"section-badge amber\">\u00a7 4.6–4.9<\/span>\n <h3>Pre-qualification & restricted modes<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">4.6 \/ 4.7<\/div><div class=\"cat-title\">PQB & Approved Vendor List<\/div><p><strong>Pre-Qualification Bidding<\/strong> shortlists capable bidders through wide publicity; an <strong>Approved Vendor List (AVL)<\/strong> holds vendors qualified for repeated draw-down. Both restrict bidding to qualified bidders.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">4.8 \/ 4.9<\/div><div class=\"cat-title\">LTE & SLTE<\/div><p><strong>Limited Tender Enquiry (LTE)<\/strong> \u2014 up to <strong>Rs 50 lakh<\/strong> (Rule 162), sent to <strong>more than three<\/strong> registered vendors and also published. <strong>Special LTE (SLTE)<\/strong> \u2014 above Rs 50 lakh in <strong>exceptional<\/strong> circumstances.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-nomination\">\n <span class=\"section-badge purple\">\u00a7 4.10–4.13<\/span>\n <h3>Nomination & shopping modes<\/h3>\n <\/div>\n\n <p>Where competition is impossible or uneconomic, procurement is from a single source or by simple shopping (Rules 154, 155, 166):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:26%\"><col style=\"width:36%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>Basis<\/th><th>Limit \/ note<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">PAC procurement<\/td><td>Proprietary Article Certificate \u2014 item available only from a named OEM\/proprietor or its authorised dealer.<\/td><td>Single source; the shortest route but needs a signed PAC (Rule 166).<\/td><\/tr>\n <tr><td class=\"label-cell\">STE without PAC<\/td><td>Single Tender Enquiry \u2014 one firm only, where a PAC cannot be certified.<\/td><td>More restricted powers than PAC.<\/td><\/tr>\n <tr><td class=\"label-cell\">Direct without quotation<\/td><td>Petty purchase of off-the-shelf, standard goods.<\/td><td>Up to <strong>Rs 50,000<\/strong> per case (Rule 154); <strong>Rs 1 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <tr><td class=\"label-cell\">Purchase Committee<\/td><td>Local committee of <strong>three members<\/strong> records a certificate.<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong> (Rule 155); <strong>Rs 10 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For any procurement outside GeM under the shopping modes, the buyer must first generate a <strong>\"GeM Availability Report & Past Transaction Summary\" (GeMAR&PTS)<\/strong> with a unique ID on the GeM portal.<\/p>\n\n <div class=\"section-heading-block\" id=\"c4-tendering\">\n <span class=\"section-badge teal\">\u00a7 4.14–4.16<\/span>\n <h3>Tendering systems \u2014 single-stage vs two-stage<\/h3>\n <\/div>\n\n <div class=\"flow teal\">\n <div class=\"flow-step\"><div class=\"fs-num\">SINGLE STAGE<\/div><div class=\"fs-title\">One call<\/div><div class=\"fs-text\">A single tender with fully-defined specifications; bids invited, evaluated and awarded in one round.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 1 (EoI)<\/div><div class=\"fs-title\">Expression of Interest<\/div><div class=\"fs-text\">Where the solution is not pre-definable, an <strong>EoI<\/strong> first explores the market and refines specifications.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 2<\/div><div class=\"fs-title\">Detailed tender<\/div><div class=\"fs-text\">A detailed tender follows. A <strong>\"non-committal EoI\"<\/strong> (open to non-shortlisted bidders too) should be rare and carry no bid security.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-channels\">\n <span class=\"section-badge slate\">\u00a7 4.17<\/span>\n <h3>Channels of procurement & direct purchase on GeM<\/h3>\n <\/div>\n\n <p>Procurement runs through manual bids, e-procurement platforms or GeM \u2014 but receiving bids through <strong>e-procurement portals is mandatory<\/strong> (mixing electronic and manual bids is poor practice). On GeM, the direct-purchase route depends on value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">\u2264 Rs 50,000<\/div><div class=\"st-cap\">Any supplier on GeM <strong>meeting the requirement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rs 50k \u2013 Rs 10 L<\/div><div class=\"st-cap\">GeM seller with the <strong>lowest price<\/strong> among \u2265 3 different manufacturers<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">> Rs 10 lakh<\/div><div class=\"st-cap\">Through GeM <strong>bidding \/ reverse auction<\/strong><\/div><\/div>\n <\/div>\n\n <p>Where an item is available on GeM, it cannot be bought of the same specification outside GeM (subject to the GeMAR&PTS check).<\/p>\n\n \n <div class=\"ix\" id=\"quiz4\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 4 Quiz \u2014 modes, thresholds & channels<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 4. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage4\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c4-recap\">\n <div class=\"recap-title\">⚡ Chapter 4 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Mode = which R?<\/td><td>The <strong>\"Right Source\"<\/strong> of the Five R's<\/td><\/tr>\n <tr><td>Five families<\/td><td>Advertised \u00b7 Pre-Qualification \u00b7 Restricted \u00b7 Nomination \u00b7 Shopping<\/td><\/tr>\n <tr><td>Default mode<\/td><td><strong>Open Tender Enquiry<\/strong> (OTE), above Rs 50 lakh \u2014 Rule 161<\/td><\/tr>\n <tr><td>GTE restriction<\/td><td>No GTE <strong>up to Rs 200 crore<\/strong> without DoE-designated approval<\/td><\/tr>\n <tr><td>Rate Contract<\/td><td><strong>No quantity<\/strong> guaranteed; agreement on rate<\/td><\/tr>\n <tr><td>LTE<\/td><td>Up to <strong>Rs 50 lakh<\/strong>; <strong>> 3<\/strong> vendors \u2014 Rule 162<\/td><\/tr>\n <tr><td>SLTE<\/td><td>Above Rs 50 lakh, <strong>exceptional<\/strong> circumstances<\/td><\/tr>\n <tr><td>Nomination modes<\/td><td><strong>PAC<\/strong> & <strong>STE<\/strong> (single source) \u2014 Rule 166<\/td><\/tr>\n <tr><td>Direct (petty)<\/td><td>\u2264 <strong>Rs 50,000<\/strong>\/case \u2014 Rule 154<\/td><\/tr>\n <tr><td>Purchase Committee<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong>, 3 members \u2014 Rule 155<\/td><\/tr>\n <tr><td>GeM direct purchase<\/td><td>\u226450k any seller \u00b7 50k\u201310L lowest of \u22653 mfrs \u00b7 >10L bidding\/RA<\/td><\/tr>\n <tr><td>Bid channel<\/td><td><strong>e-procurement mandatory<\/strong>; no mixing with manual bids<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch5\" data-chapter=\"5\">\n\n <div class=\"chapter-heading-block\" id=\"c5-tdoc\">\n <span class=\"chapter-badge\">CH 5 \u00b7 BID INVITATION<\/span>\n <h2>Bid Invitation Process<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The tender document (5.1)<\/div>\n <div class=\"def-text\">\n The tender document is the <strong>fundamental document<\/strong> of public procurement \u2014 after award it becomes part of the contract. Clauses must be clear, self-contained and unambiguous to avoid disputes, delays and quality compromises. The Department of Expenditure has issued <strong>Model Tender Documents (MTDs)<\/strong> \u2014 Goods and Non-Consultancy Services (October 2021) and Consultancy Services (April 2023) \u2014 which entities customise for each procurement. A bid quoting <strong>NIL charges<\/strong> is treated as unresponsive.\n <\/div>\n <\/div>\n\n <p>Under Rule 168 a tender document is built from eight ordered sections, followed by the financial bid and the forms:<\/p>\n <ol class=\"parts-list roman blue\">\n <li>Notice Inviting Tender (NIT) and the Tender Information Sheet.<\/li>\n <li>Instructions to Bidders (ITB).<\/li>\n <li>Appendix to ITB (AITB).<\/li>\n <li>General Conditions of Contract (GCC).<\/li>\n <li>Special Conditions of Contract (SCC).<\/li>\n <li>Schedule of Requirements.<\/li>\n <li>Technical Specifications and Quality Assurance.<\/li>\n <li>Qualification and Evaluation Criteria.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">Anatomy of a tender document (Rule 168) \u2014 5.1.3<\/div>\n <svg viewBox=\"0 0 660 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"The eight sections of a tender document\">\n<rect x=\"70\" y=\"20\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"20\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"20\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"43.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">I<\/text>\n<text x=\"130\" y=\"43.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Notice Inviting Tender (NIT)<\/text>\n<rect x=\"70\" y=\"63\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"63\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"63\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"86.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">II<\/text>\n<text x=\"130\" y=\"86.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Instructions to Bidders (ITB)<\/text>\n<rect x=\"70\" y=\"106\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\" opacity=\"0.12\" stroke=\"#2d8ecf\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"106\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\"\/>\n<rect x=\"104\" y=\"106\" width=\"14\" height=\"36\" fill=\"#2d8ecf\"\/>\n<text x=\"93\" y=\"129.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">III<\/text>\n<text x=\"130\" y=\"129.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Appendix to ITB (AITB)<\/text>\n<rect x=\"70\" y=\"149\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"149\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"149\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"172.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">IV<\/text>\n<text x=\"130\" y=\"172.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">General Conditions (GCC)<\/text>\n<rect x=\"70\" y=\"192\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"192\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"192\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"215.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">V<\/text>\n<text x=\"130\" y=\"215.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Special Conditions (SCC)<\/text>\n<rect x=\"70\" y=\"235\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"235\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"235\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"258.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VI<\/text>\n<text x=\"130\" y=\"258.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Schedule of Requirements<\/text>\n<rect x=\"70\" y=\"278\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"278\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"278\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"301.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VII<\/text>\n<text x=\"130\" y=\"301.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Technical Specs & QA<\/text>\n<rect x=\"70\" y=\"321\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"321\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\"\/>\n<rect x=\"104\" y=\"321\" width=\"14\" height=\"36\" fill=\"#7e3eb5\"\/>\n<text x=\"93\" y=\"344.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VIII<\/text>\n<text x=\"130\" y=\"344.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Qualification & Evaluation<\/text>\n<\/svg>\n <div class=\"fig-cap\">ITB covers everything up to the announcement of award; <strong>GCC<\/strong> covers everything after award to contract closure. Exceptional changes go into the <strong>AITB<\/strong> and <strong>SCC<\/strong>, which supersede the standing ITB\/GCC.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-filters\">\n <span class=\"section-badge teal\">\u00a7 5.1.3<\/span>\n <h3>Three filters \u2014 eligibility, qualification & evaluation<\/h3>\n <\/div>\n\n <p>The criteria in the tender document act as <strong>three successive filters<\/strong>, each narrowing the field; no criterion that cannot be verified may be used, and any criterion not stated in the tender cannot later be applied.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How the criteria narrow the field<\/div>\n <svg viewBox=\"0 0 640 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Three filters narrowing bidders to the awarded bidder\">\n<polygon points=\"70,28 570,28 520,80 120,80\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"59.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">All bids<\/text>\n<polygon points=\"120,92 520,92 470,144 170,144\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"123.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Eligibility<\/text>\n<polygon points=\"170,156 470,156 415,208 225,208\" fill=\"#0e8f7a\" opacity=\"0.16\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"187.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Qualification<\/text>\n<polygon points=\"225,220 415,220 360,272 280,272\" fill=\"#7e3eb5\" opacity=\"0.16\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"251.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Evaluation<\/text>\n<rect x=\"250\" y=\"276\" width=\"140\" height=\"20\" rx=\"6\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"290\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"800\" fill=\"#ffd95a\">AWARD<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Eligibility<\/strong> decides who may participate; <strong>qualification<\/strong> tests capability to perform; <strong>evaluation<\/strong> picks the most advantageous bid (beyond price, criteria may include quality, life-cycle\/running cost, after-sales service and delivery period).<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">3 weeks<\/div><div class=\"st-cap\">Minimum time normally allowed for bidders to prepare<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4 weeks<\/div><div class=\"st-cap\">Where <strong>international<\/strong> participation is contemplated<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">90 days<\/div><div class=\"st-cap\">Default <strong>bid validity<\/strong> if not otherwise specified<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">NIL = void<\/div><div class=\"st-cap\">A bid quoting NIL charges is <strong>unresponsive<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-publish\">\n <span class=\"section-badge purple\">\u00a7 5.2<\/span>\n <h3>Publication, pre-bid conference & submission<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Publish<\/div><div class=\"cat-title\">GeM & CPPP<\/div><p>NIT and the full tender document are published on <strong>GeM and GeM-CPPP<\/strong> (and the entity's own website); documents are <strong>free to download<\/strong>; time-stamped audit trails are kept. A limited-tender NIT carries a note that it is for information only and participation is by invitation.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Clarify<\/div><div class=\"cat-title\">Pre-bid conference<\/div><p>For <strong>turnkey or sophisticated, costly<\/strong> equipment, one or more pre-bid conferences (or online) clarify the tender; resulting <strong>corrigenda\/clarifications<\/strong> are issued with mandatory timelines and published.<\/p><\/div>\n <\/div>\n\n <p>Bids are uploaded by the deadline (server clock is the reference); <strong>no manual bids<\/strong> are accepted in e-procurement. A bid valid for a shorter period than required is rejected as non-responsive. Bid security (or a permitted Bid Securing Declaration) must accompany the bid.<\/p>\n\n <div class=\"section-heading-block\" id=\"c5-open\">\n <span class=\"section-badge slate\">\u00a7 5.3<\/span>\n <h3>Opening of bids<\/h3>\n <\/div>\n\n <div class=\"flow\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Open publicly<\/div><div class=\"fs-text\">The Bid Opening Committee (BOC) opens bids immediately after the deadline, before attending bidders' representatives (who carry a letter of authority).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Number & initial<\/div><div class=\"fs-text\">Each bid is serially numbered and initialled with date\/time; salient features are read out. <strong>Late bids are not considered<\/strong> (Rule 165).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Record<\/div><div class=\"fs-text\">A signed bid-opening report is prepared and handed to the Tender Committee. The BOC <strong>cannot reject<\/strong> any bid at the opening stage.<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz5\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 5 Quiz \u2014 tender documents, criteria & opening<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 5. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage5\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c5-recap\">\n <div class=\"recap-title\">⚡ Chapter 5 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Tender document contents<\/td><td><strong>Rule 168<\/strong>; eight sections (NIT\/TIS \u2192 Qualification & Evaluation)<\/td><\/tr>\n <tr><td>ITB vs GCC<\/td><td>ITB = up to award; GCC = after award; AITB\/SCC override<\/td><\/tr>\n <tr><td>Three filters<\/td><td>Eligibility \u2192 Qualification \u2192 Evaluation<\/td><\/tr>\n <tr><td>Unverifiable criteria<\/td><td>Cannot be used; criteria must be in the tender<\/td><\/tr>\n <tr><td>Minimum bid time<\/td><td><strong>3 weeks<\/strong> (national) \u00b7 <strong>4 weeks<\/strong> (international)<\/td><\/tr>\n <tr><td>Default bid validity<\/td><td><strong>90 days<\/strong><\/td><\/tr>\n <tr><td>NIL quote<\/td><td>Treated as <strong>unresponsive<\/strong><\/td><\/tr>\n <tr><td>Publication<\/td><td><strong>GeM & CPPP<\/strong>; documents free to download<\/td><\/tr>\n <tr><td>Pre-bid conference<\/td><td>For turnkey \/ sophisticated costly equipment<\/td><\/tr>\n <tr><td>Late bids<\/td><td><strong>Not considered<\/strong> (Rule 165); BOC cannot reject at opening<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch6\" data-chapter=\"6\">\n\n <div class=\"chapter-heading-block\" id=\"c6-sec\">\n <span class=\"chapter-badge\">CH 6 \u00b7 SECURITIES & PRICES<\/span>\n <h2>Forms of Securities, Prices, Payment Terms & Price Variations<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Why securities exist (6.1)<\/div>\n <div class=\"def-text\">\n Securities protect the procuring entity at two points: a <strong>Bid Security (EMD)<\/strong> guards against a bidder withdrawing or altering its bid during validity; a <strong>Performance Security<\/strong> guards against non-performance of the contract. For goods, the need for performance security depends on the market and commercial practice. Each form of security applies over a different window of the procurement lifecycle.\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">Securities across the procurement lifecycle (6.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"When each form of security applies across the procurement lifecycle\">\n<line x1=\"60\" y1=\"48\" x2=\"210\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"135.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Bidding<\/text>\n<line x1=\"60\" y1=\"42\" x2=\"60\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"210\" y1=\"48\" x2=\"330\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"270.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Award<\/text>\n<line x1=\"210\" y1=\"42\" x2=\"210\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"330\" y1=\"48\" x2=\"520\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"425.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Execution<\/text>\n<line x1=\"330\" y1=\"42\" x2=\"330\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"520\" y1=\"48\" x2=\"650\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"585.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Warranty<\/text>\n<line x1=\"520\" y1=\"42\" x2=\"520\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"650\" y1=\"42\" x2=\"650\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<rect x=\"60\" y=\"80\" width=\"210\" height=\"34\" rx=\"7\" fill=\"#1c5da6\"\/>\n<text x=\"72\" y=\"102\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Bid Security<\/text>\n<text x=\"260\" y=\"102\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">2\u20135%<\/text>\n<rect x=\"210\" y=\"128\" width=\"370\" height=\"34\" rx=\"7\" fill=\"#0e8f7a\"\/>\n<text x=\"222\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Performance Security<\/text>\n<text x=\"570\" y=\"150\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">3\u20135%<\/text>\n<rect x=\"505\" y=\"176\" width=\"145\" height=\"34\" rx=\"7\" fill=\"#c97c10\"\/>\n<text x=\"517\" y=\"198\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Warranty BG<\/text>\n<text x=\"640\" y=\"198\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">10%<\/text>\n<\/svg>\n <div class=\"fig-cap\">Bid Security may be a demand draft, banker's cheque, bank guarantee, insurance surety bond or online payment; above <strong>Rs 5 lakh<\/strong> (and for foreign GTE bidders) it must be a <strong>bank guarantee<\/strong>. In goods, retaining performance security from running bills is <strong>not<\/strong> acceptable.<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">2\u20135%<\/div><div class=\"st-cap\"><strong>Bid Security \/ EMD<\/strong> of estimated value (Rule 170)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">3\u20135%<\/div><div class=\"st-cap\"><strong>Performance Security<\/strong> of contract value (3\u201310% for Works) \u2014 Rule 171<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">10%<\/div><div class=\"st-cap\"><strong>Warranty BG<\/strong> on capital equipment, valid 60 days beyond warranty<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">\u2264 Rs 50 L<\/div><div class=\"st-cap\"><strong>No Performance Security<\/strong> needed up to this tender value<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">14\u201328 days<\/div><div class=\"st-cap\">Performance Security furnished after award notification<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">30 days<\/div><div class=\"st-cap\">Bid Security returned to unsuccessful bidders by 30th day after award<\/div><\/div>\n <\/div>\n\n <p>A <strong>Bid Securing Declaration (BSD)<\/strong> may replace bid security (with CA approval): withdrawing\/modifying the bid, or failing to furnish performance security or sign the contract, is treated as a breach of the Code of Integrity and the bidder is suspended. <strong>MSEs and DPIIT-recognised start-ups are exempt from EMD.<\/strong><\/p>\n\n <div class=\"section-heading-block\" id=\"c6-isb\">\n <span class=\"section-badge teal\">\u00a7 6.1.3–6.1.4<\/span>\n <h3>Insurance Surety Bond & the electronic bank guarantee<\/h3>\n <\/div>\n\n <p>An <strong>Insurance Surety Bond (ISB)<\/strong> is a three-cornered assurance: the <strong>principal<\/strong> (the contractor\/supplier) obtains the bond from a <strong>surety insurer<\/strong> (an insurance company), which assures performance to the <strong>beneficiary<\/strong> (the procuring entity). It is premium-based and needs no collateral; if the principal does not pay within 14 days of a valid claim, the surety pays the beneficiary within 45 calendar days.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">The Insurance Surety Bond \u2014 a three-party assurance<\/div>\n <svg viewBox=\"0 0 640 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Insurance Surety Bond three-party relationship\">\n<line x1=\"320\" y1=\"47\" x2=\"422\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"422\" y1=\"224\" x2=\"218\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"218\" y1=\"224\" x2=\"320\" y2=\"47\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<circle cx=\"320\" cy=\"47\" r=\"56\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"320\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">PRINCIPAL<\/text>\n<circle cx=\"422\" cy=\"224\" r=\"56\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"422\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">SURETY<\/text>\n<text x=\"422\" y=\"236\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">INSURER<\/text>\n<circle cx=\"218\" cy=\"224\" r=\"56\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"218\" y=\"229\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">BENEFICIARY<\/text>\n<\/svg>\n <div class=\"fig-cap\">An <strong>electronic Bank Guarantee (e-BG)<\/strong> is a dematerialised BG processed on the <strong>NeSL<\/strong> portal (24\/7); verification with NeSL is sufficient and verification with the issuing bank is not required.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c6-advance\">\n <span class=\"section-badge amber\">\u00a7 6.5<\/span>\n <h3>Advance payments<\/h3>\n <\/div>\n\n <p>Ordinarily payment follows supply; advance payment is exceptional \u2014 justified where a contractor must sink substantial funds before payment falls due, given the Government's lower cost of funds. It is anticipated at the planning stage and declared in the tender document.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">40%<\/div><div class=\"st-cap\">Ceiling of advance to a <strong>State \/ Central Government agency or PSE<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">110%<\/div><div class=\"st-cap\">Bank guarantee (or e-BG) to secure an advance \u2014 at least 110% of it<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2265 2<\/div><div class=\"st-cap\">Advance paid in <strong>at least two instalments<\/strong>; recovered against milestones<\/div><\/div>\n <\/div>\n <p>Advances are normally <strong>interest-free<\/strong> only where the tender so provided; otherwise a suitable interest rate (e.g. the GPF rate) applies. Milestone \/ stage \/ part-payments against proof of dispatch are <strong>not<\/strong> treated as advances (Rule 172(2)).<\/p>\n\n <div class=\"section-heading-block\" id=\"c6-prices\">\n <span class=\"section-badge purple\">\u00a7 6.6–6.7<\/span>\n <h3>Firm vs variable price, and exchange-rate variation<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:22%\"><col style=\"width:39%\"><col style=\"width:39%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Firm & Fixed Price<\/th><th>Variable Price (PVC)<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">When used<\/td><td>Deliveries up to <strong>12 months<\/strong> \u2014 the normal case.<\/td><td>Deliveries <strong>longer than 12 months<\/strong>, where input costs may move materially.<\/td><\/tr>\n <tr><td class=\"label-cell\">Mechanism<\/td><td>Price not subject to variation during the contract.<\/td><td>A <strong>Price Variation Clause<\/strong> adjusts for changes in labour, material and fuel\/power against reliable indices.<\/td><\/tr>\n <tr><td class=\"label-cell\">Safeguards<\/td><td>\u2014<\/td><td>Specify a <strong>base date<\/strong>, a <strong>time-lag<\/strong> and a <strong>ceiling<\/strong>; the entity should give its own PVC formula and base dates.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For contracts with significant foreign-exchange content and a delivery period exceeding one year, an <strong>Exchange Rate Variation (ERV)<\/strong> clause works out variation from a stated base date. Imports are commonly paid through a <strong>Letter of Credit<\/strong> (governed by UCP 600).<\/p>\n\n \n <div class=\"ix\" id=\"quiz6\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 6 Quiz \u2014 securities, advances & prices<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 6. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage6\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c6-recap\">\n <div class=\"recap-title\">⚡ Chapter 6 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Bid Security \/ EMD<\/td><td><strong>2\u20135%<\/strong> of estimated value (Rule 170); valid 45 days beyond bid validity<\/td><\/tr>\n <tr><td>Bid Security form<\/td><td>> <strong>Rs 5 lakh<\/strong> \/ foreign GTE \u2192 bank guarantee<\/td><\/tr>\n <tr><td>EMD exemption<\/td><td><strong>MSEs & DPIIT start-ups<\/strong>; BSD may replace EMD<\/td><\/tr>\n <tr><td>Performance Security<\/td><td><strong>3\u20135%<\/strong> of contract value (Rule 171); 3\u201310% for Works<\/td><\/tr>\n <tr><td>No Performance Security<\/td><td>Up to a tender value of <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Perf. Security validity<\/td><td><strong>60 days<\/strong> beyond all obligations incl. warranty<\/td><\/tr>\n <tr><td>Warranty BG<\/td><td><strong>10%<\/strong> on capital equipment<\/td><\/tr>\n <tr><td>Insurance Surety Bond<\/td><td>3 parties; premium-based, no collateral<\/td><\/tr>\n <tr><td>e-BG<\/td><td>On <strong>NeSL<\/strong>; NeSL verification sufficient<\/td><\/tr>\n <tr><td>Advance to Govt\/PSE<\/td><td>Up to <strong>40%<\/strong>; secured by \u2265110% BG; \u22652 instalments<\/td><\/tr>\n <tr><td>Firm price<\/td><td>Deliveries up to <strong>12 months<\/strong><\/td><\/tr>\n <tr><td>Variable price (PVC)<\/td><td>Deliveries > 12 months; base date, time-lag, ceiling<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch7\" data-chapter=\"7\">\n\n <div class=\"chapter-heading-block\" id=\"c7-eval\">\n <span class=\"chapter-badge\">CH 7 \u00b7 EVALUATION & AWARD<\/span>\n <h2>Bid Evaluation & Award of Contract<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The cardinal rule of evaluation (7.1)<\/div>\n <div class=\"def-text\">\n Bids are evaluated <strong>strictly on the terms of the tender document<\/strong> and the bids themselves \u2014 no hearsay, no undeclared condition, no overlooking or relaxing an essential condition. The aim is that <strong>no bidder gains undue advantage<\/strong> at the cost of others or of the procuring entity, and that a preference does not collapse the field to a single vendor.\n <\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">> Rs 50 L<\/div><div class=\"st-cap\">Above this, a <strong>3-member Tender Committee<\/strong> evaluates (incl. a finance member & user rep)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 173(xxii)<\/div><div class=\"st-cap\">No TC member may <strong>report directly<\/strong> to another, where value > Rs 50 lakh<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2260<\/div><div class=\"st-cap\">The <strong>recommending<\/strong> authority must not also be the <strong>accepting<\/strong> authority<\/div><\/div>\n <\/div>\n\n <p>Below the <strong>direct-acceptance threshold<\/strong> in the SoPP, the competent authority may evaluate directly without a Tender Committee. Above it, the Tender Committee runs the evaluation through successive gates:<\/p>\n\n <p>Evaluation runs through four gates before award: <strong>preliminary examination<\/strong> (responsiveness) \u2192 <strong>qualification<\/strong> (capability) \u2192 <strong>financial evaluation<\/strong> (determining L1) \u2192 <strong>award<\/strong>. Bids found unresponsive or unqualified drop out at the relevant gate.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The bid-evaluation pipeline (7.3–7.6)<\/div>\n <svg viewBox=\"0 0 700 190\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Bid evaluation pipeline\">\n<defs><marker id=\"pp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><marker id=\"dr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#c0392b\"\/><\/marker><\/defs>\n<rect x=\"20\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#41617f\"\/>\n<text x=\"76.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">All bids<\/text>\n<line x1=\"132\" y1=\"66.0\" x2=\"154\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"154\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"210.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Preliminary<\/text>\n<line x1=\"266\" y1=\"66.0\" x2=\"288\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"210.0\" y1=\"92\" x2=\"210.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"210.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unresponsive<\/text>\n<rect x=\"288\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"344.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Qualification<\/text>\n<line x1=\"400\" y1=\"66.0\" x2=\"422\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"344.0\" y1=\"92\" x2=\"344.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"344.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unqualified<\/text>\n<rect x=\"422\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#c97c10\"\/>\n<text x=\"478.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Financial<\/text>\n<line x1=\"534\" y1=\"66.0\" x2=\"556\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"556\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"612.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<\/svg>\n <div class=\"fig-cap\">A comparative statement of quotations is prepared (except up to Rs 50 lakh) and may be vetted by integrated Finance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c7-prelim\">\n <span class=\"section-badge red\">\u00a7 7.3<\/span>\n <h3>Preliminary examination \u2014 responsive vs unresponsive<\/h3>\n <\/div>\n\n <p>Only <strong>substantively responsive<\/strong> bids \u2014 complete and conforming to the tender's essential terms without substantive deviation \u2014 proceed. Among the grounds on which a bid is ignored as <strong>unresponsive<\/strong>:<\/p>\n <ol class=\"parts-list decimal red\">\n <li>Not in the prescribed format, or <strong>unsigned<\/strong> as required.<\/li>\n <li><strong>EMD not provided<\/strong>, or exemption claimed without acceptable proof.<\/li>\n <li>Bidder <strong>not eligible<\/strong> per the eligibility criteria (including conflict of interest \/ CIPP).<\/li>\n <li>Quoted goods of another manufacturer <strong>without the required authority letter<\/strong>.<\/li>\n <li>Departs from <strong>essential requirements<\/strong> (e.g. refuses to give performance security), or has not quoted for the <strong>entire schedule<\/strong>.<\/li>\n <li><strong>Conditional, multiple or alternative<\/strong> bids where not expressly permitted; or bid validity shorter than required.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c7-discrep\">\n <span class=\"section-badge slate\">\u00a7 7.3.2–7.3.4<\/span>\n <h3>Resolving discrepancies & classifying deviations<\/h3>\n <\/div>\n\n <p>Where figures and words (or copies) disagree, fixed rules decide <strong>what prevails<\/strong>:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Unit vs total<\/div><div class=\"cat-title\">Unit price prevails<\/div><p>If unit price × quantity \u2260 the stated total, the <strong>unit price<\/strong> governs and the total is corrected.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Sub-total vs total<\/div><div class=\"cat-title\">Sub-totals prevail<\/div><p>If a grand total mis-adds the sub-totals, the <strong>sub-totals<\/strong> govern and the total is corrected.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Words vs figures<\/div><div class=\"cat-title\">Words prevail<\/div><p>Between an amount in words and in figures, the amount <strong>in words<\/strong> governs. Original prevails over a scanned copy.<\/p><\/div>\n <\/div>\n\n <p class=\"compare-intro\">A <strong>deviation, reservation or omission<\/strong> is either substantive (reject) or minor (may be condoned):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:38%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Type<\/th><th>Substantive deviation \u2192 reject<\/th><th>Minor deviation \u2192 may accept<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Test<\/td><td>Affects scope\/quality\/performance; limits the entity's rights or the bidder's obligations; or its rectification would unfairly affect other bidders' competitive position.<\/td><td>Missing pages, illegibility, fewer copies \u2014 issues with <strong>no fiscal impact<\/strong> that do not change the ranking or grant any undue advantage.<\/td><\/tr>\n <tr><td class=\"label-cell\">Action<\/td><td>Rejected as non-responsive (deviations may be accepted only in STE\/PAC, with reasons recorded).<\/td><td>Bidder asked to clarify by a target date; an evasive\/no reply makes the bid liable to rejection.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c7-award\">\n <span class=\"section-badge purple\">\u00a7 7.6<\/span>\n <h3>Award of contract \u2014 reasonableness, low bids & parallel contracts<\/h3>\n <\/div>\n\n <p>Every Tender Committee recommendation must declare the price <strong>reasonable<\/strong>, judged mainly against the <strong>Last Purchase Price (LPP)<\/strong> updated for quantity, delivery and terms (triangulating more than one method). An <strong>abnormally low bid (ALB)<\/strong> may be probed for the bidder's capability to deliver, and rejected if unconvincing.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">L1<\/div><div class=\"st-cap\">Award goes to the <strong>lowest acceptable bidder<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">70 : 30<\/div><div class=\"st-cap\">Typical split when a <strong>parallel contract<\/strong> divides quantity between two<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u00b1 option<\/div><div class=\"st-cap\">A plus\/minus <strong>option clause<\/strong> adjusts quantity; never in development orders<\/div><\/div>\n <\/div>\n\n <div class=\"callout red\">\n <div class=\"callout-label\">Negotiations (Rule 173(xiv)) \u2014 handle with great care<\/div>\n <p>Price negotiation after bid opening <strong>must be severely discouraged<\/strong> and used only in exceptional, recorded circumstances. When unavoidable, it is conducted <strong>only with L1<\/strong> \u2014 in <strong>no case<\/strong>, including where cartel rates are suspected, may negotiations be extended to other bidders. A counter-offer to L1 amounts to a negotiation; the original offer stays open if the negotiation fails. If L1's price stays unreasonable, the options are re-tender or escalation to a higher level.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz7\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 7 Quiz \u2014 evaluation, deviations & award<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 7. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage7\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c7-recap\">\n <div class=\"recap-title\">⚡ Chapter 7 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Evaluation basis<\/td><td>Strictly the tender document & the bids; no undeclared conditions<\/td><\/tr>\n <tr><td>Tender Committee<\/td><td><strong>3 members<\/strong> (incl. finance + user) above <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Independence<\/td><td><strong>Rule 173(xxii)<\/strong> \u2014 no direct-report members; recommending \u2260 accepting<\/td><\/tr>\n <tr><td>Comparative statement<\/td><td>Prepared except up to <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Responsive bid<\/td><td>Complete, no substantive deviation<\/td><\/tr>\n <tr><td>Unit vs total<\/td><td><strong>Unit price<\/strong> prevails<\/td><\/tr>\n <tr><td>Words vs figures<\/td><td><strong>Words<\/strong> prevail; original over scanned copy<\/td><\/tr>\n <tr><td>Deviation<\/td><td>Substantive \u2192 reject; minor \u2192 may condone (no fiscal\/ranking impact)<\/td><\/tr>\n <tr><td>Reasonableness<\/td><td>Judged mainly against the <strong>Last Purchase Price<\/strong><\/td><\/tr>\n <tr><td>Parallel contract split<\/td><td><strong>70 : 30<\/strong> (two suppliers)<\/td><\/tr>\n <tr><td>Negotiation<\/td><td>Discouraged; <strong>only with L1<\/strong> (Rule 173(xiv)); never others<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch8\" data-chapter=\"8\">\n\n <div class=\"chapter-heading-block\" id=\"c8-emerg\">\n <span class=\"chapter-badge\">CH 8 \u00b7 UNIQUE FEATURES<\/span>\n <h2>Procurements with Unique Features<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">When the standard route does not fit (8.1)<\/div>\n <div class=\"def-text\">\n Some procurements need special handling \u2014 operational emergencies, capital equipment, maintenance, buy-back of old assets, turnkey supply and print media. The guidelines already carry <strong>fast-track modes and flexibilities<\/strong>; enhanced delegations may be built into the SoPP so that an emergency does not force a departure from process.\n <\/div>\n <\/div>\n\n <p>For an operational emergency the suggested modes, fastest first, are: <strong>GeM portal<\/strong> \u2192 <strong>direct purchase without quotation<\/strong> \u2192 <strong>Purchase Committee<\/strong> \u2192 <strong>SLTE \/ LTE \/ STE with reduced bid time<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Fast-track modes in order of speed (8.1)<\/div>\n <svg viewBox=\"0 0 700 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Fast-track procurement modes in order of speed\">\n<defs><marker id=\"spd\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#spd)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">FASTEST<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">MORE TIME<\/text>\n<rect x=\"22\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<circle cx=\"97.0\" cy=\"98\" r=\"17\" fill=\"#0e8f7a\"\/>\n<text x=\"97.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"97.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#0e8f7a\">GeM portal<\/text>\n<rect x=\"182\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<circle cx=\"257.0\" cy=\"98\" r=\"17\" fill=\"#1c5da6\"\/>\n<text x=\"257.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"257.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#1c5da6\">Direct (no quote)<\/text>\n<rect x=\"342\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<circle cx=\"417.0\" cy=\"98\" r=\"17\" fill=\"#c97c10\"\/>\n<text x=\"417.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"417.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">Purchase Committee<\/text>\n<rect x=\"502\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<circle cx=\"577.0\" cy=\"98\" r=\"17\" fill=\"#7e3eb5\"\/>\n<text x=\"577.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"577.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#7e3eb5\">SLTE \/ LTE \/ STE<\/text>\n<\/svg>\n <div class=\"fig-cap\">In a declared crisis (disaster\/pandemic), reasonableness is judged knowing prices may be higher; Model Tender Documents and standard GCC do not apply to emergency procurement.<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Crisis dispensations (with competent-authority approval)<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">SELF-DECL<\/span><span class=\"nl-text\">Eligibility\/qualification by <strong>vendor self-declaration<\/strong> (with penalties for false declarations); physical inspection replaced by self-declared quality.<\/span><\/li>\n <li><span class=\"nl-tag\">TIMELINES<\/span><span class=\"nl-text\">Bid-submission time shortened to <strong>1\u20133 days<\/strong>; bids by phone, email or in person; single-stage single-envelope; <strong>even a single offer may be accepted<\/strong> without re-tendering.<\/span><\/li>\n <li><span class=\"nl-tag\">RELAX<\/span><span class=\"nl-text\">Tender cost, <strong>EMD, performance security, LD, negotiations<\/strong> and vendor-registration fees may be relaxed or dispensed with; documents kept to the bare minimum.<\/span><\/li>\n <li><span class=\"nl-tag\">AUDIT<\/span><span class=\"nl-text\">After the crisis ends, special time-bound internal and external audits with a <strong>large sample size<\/strong>; undelivered contracts reviewed for cancellation.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c8-capital\">\n <span class=\"section-badge blue\">\u00a7 8.3–8.6<\/span>\n <h3>Capital goods, AMC, NPV & turnkey<\/h3>\n <\/div>\n\n <p>Capital goods (machinery & plant, IT systems) create lasting assets and carry a long life \u2014 so their acquisition is an <strong>investment decision<\/strong> against an item-specific budget. What you pay to buy is only the visible tip of the cost:<\/p>\n\n <p>Beneath the visible purchase price lie the larger lifetime costs: <strong>installation & commissioning<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance & AMC<\/strong>, <strong>spares & training<\/strong>, and <strong>disposal<\/strong> at the end of life \u2014 together the Total Cost of Ownership.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Total Cost of Ownership \u2014 the iceberg (8.3)<\/div>\n <svg viewBox=\"0 0 640 360\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Total Cost of Ownership iceberg for capital goods\">\n<rect x=\"0\" y=\"120\" width=\"640\" height=\"240\" fill=\"#2d8ecf\" opacity=\"0.07\"\/>\n<line x1=\"0\" y1=\"120\" x2=\"640\" y2=\"120\" stroke=\"#2d8ecf\" stroke-width=\"1.5\" stroke-dasharray=\"6 5\"\/>\n<text x=\"628\" y=\"113\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-style=\"italic\" fill=\"#2d8ecf\">waterline<\/text>\n<polygon points=\"320,42 248,120 392,120\" fill=\"#1c5da6\"\/>\n<text x=\"320\" y=\"92\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Purchase<\/text>\n<text x=\"320\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">price<\/text>\n<polygon points=\"248,120 392,120 472,344 168,344\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"156\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Installation & commissioning<\/text>\n<text x=\"320\" y=\"188\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Operation & consumables<\/text>\n<text x=\"320\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Maintenance & AMC<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Spares & training<\/text>\n<text x=\"320\" y=\"284\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Disposal at end of life<\/text>\n<text x=\"320\" y=\"324\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#9ec3e6\">Total Cost of Ownership<\/text>\n<\/svg>\n <div class=\"fig-cap\">Because lifetime operating, maintenance and disposal costs can outweigh the purchase price, evaluation may build in initial spares and the <strong>NPV of AMC<\/strong> over the equipment's life.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal blue\">\n <li><strong>Alternatives to owning<\/strong> \u2014 hire, hire-purchase, lease, or buying the functionality \"as a service\" (useful where equipment, e.g. IT, ages fast).<\/li>\n <li><strong>Bundled elements<\/strong> \u2014 installation, commissioning, training, trials, warranty, post-warranty maintenance and assured spares; 2-year initial spares may be required.<\/li>\n <li><strong>Turnkey<\/strong> \u2014 where several machines\/components and third-party works act in tandem, an all-encompassing turnkey contract (manufacture \u2192 install \u2192 commission) may be better (8.6).<\/li>\n <li><strong>Pre-qualification fit<\/strong> \u2014 experience, capacity and financial strength drive quality and after-sales support, so capital goods suit pre-qualification bidding.<\/li>\n <\/ol>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 169<\/div><div class=\"st-cap\"><strong>AMC<\/strong> starts only after the warranty period; OEM or a competent firm<\/div><\/div>\n <div class=\"stat-tile blue\"><div class=\"st-num\">7%<\/div><div class=\"st-cap\">Illustrative <strong>discount rate<\/strong> for NPV; computed via the Excel NPV function<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Rule 176<\/div><div class=\"st-cap\"><strong>Buy-back<\/strong> \u2014 quote price with and without a rebate for the old item<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 = discount<\/div><div class=\"st-cap\"><strong>Books\/print media<\/strong> \u2014 quoted as net discount on published price<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz8\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 8 Quiz \u2014 emergencies, capital goods & AMC<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 8. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage8\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c8-recap\">\n <div class=\"recap-title\">⚡ Chapter 8 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Fastest emergency mode<\/td><td><strong>GeM<\/strong> \u2192 Direct \u2192 Purchase Committee \u2192 SLTE\/LTE\/STE (reduced time)<\/td><\/tr>\n <tr><td>Crisis bid time<\/td><td>Shortened to <strong>1\u20133 days<\/strong>; single offer acceptable<\/td><\/tr>\n <tr><td>Crisis & MTD\/GCC<\/td><td>Model Tender Documents & standard GCC <strong>do not apply<\/strong><\/td><\/tr>\n <tr><td>Below Rs 50,000 in crisis<\/td><td>Local purchase allowed even if item is on GeM<\/td><\/tr>\n <tr><td>Buy-back<\/td><td><strong>Rule 176<\/strong>; quote with & without rebate<\/td><\/tr>\n <tr><td>Capital goods<\/td><td>Item-specific budget; an <strong>investment decision<\/strong><\/td><\/tr>\n <tr><td>TCO<\/td><td>Lifetime O&M + disposal may outweigh purchase price<\/td><\/tr>\n <tr><td>AMC<\/td><td><strong>Rule 169<\/strong>; starts after warranty; OEM or competent firm<\/td><\/tr>\n <tr><td>NPV discount rate<\/td><td><strong>7%<\/strong> (illustrative); Excel NPV function<\/td><\/tr>\n <tr><td>Books \/ print media<\/td><td>L1 = the <strong>best net discount<\/strong> on published price<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch9\" data-chapter=\"9\">\n\n <div class=\"chapter-heading-block\" id=\"c9-cm\">\n <span class=\"chapter-badge\">CH 9 \u00b7 CONTRACT MANAGEMENT<\/span>\n <h2>Contract Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">From signed contract to delivered goods (9.1)<\/div>\n <div class=\"def-text\">\n Contract management is the active stewardship of a contract after award \u2014 ensuring the goods are delivered to specification, on time and at the agreed cost, with risks managed to a clean closure. It runs across several control domains:\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The contract-management lifecycle<\/div>\n <svg viewBox=\"0 0 720 120\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Contract management lifecycle\">\n<defs><marker id=\"cl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<rect x=\"18\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#41617f\"\/>\n<text x=\"68.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<line x1=\"118\" y1=\"62.0\" x2=\"134\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"134\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"184.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Scope & Qty<\/text>\n<line x1=\"234\" y1=\"62.0\" x2=\"250\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"250\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"300.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Time<\/text>\n<line x1=\"350\" y1=\"62.0\" x2=\"366\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"366\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"416.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Quality<\/text>\n<line x1=\"466\" y1=\"62.0\" x2=\"482\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"482\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#7e3eb5\"\/>\n<text x=\"532.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Payment<\/text>\n<line x1=\"582\" y1=\"62.0\" x2=\"598\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"598\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"648.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Closure<\/text>\n<\/svg>\n <div class=\"fig-cap\">The signed contract becomes binding the moment the award is notified; everything after that is execution monitoring.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-qty\">\n <span class=\"section-badge blue\">\u00a7 9.2<\/span>\n <h3>Scope of supply & quantity control<\/h3>\n <\/div>\n\n <p>Minor short\/excess deliveries in the <strong>final consignment<\/strong> are unavoidable and may be treated as completion within a tolerance, without a formal amendment. Where the requirement changes, a <strong>plus\/minus option clause<\/strong> adjusts quantity:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">25\u201330%<\/div><div class=\"st-cap\">Option-clause variation should ideally <strong>not exceed<\/strong> this band<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">50%<\/div><div class=\"st-cap\">Option clause normally exercised after receipt of 50% quantity<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">CA approval<\/div><div class=\"st-cap\">From the authority that approved the original tender decision; none on development orders<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-time\">\n <span class=\"section-badge teal\">\u00a7 9.3<\/span>\n <h3>Time control & liquidated damages<\/h3>\n <\/div>\n\n <p>The delivery period is the <strong>\"essence of the contract\"<\/strong> and must be realistic; vague phrases like \"immediately\" are not legally binding. For staggered supply, slight monthly deviation is tolerated \u2014 <strong>\u00b15% cumulative in a year<\/strong> (\u00b15% in a month \/ \u00b17% per quarter) is not a violation and attracts no LD. Where delivery slips, <strong>Liquidated Damages<\/strong> accrue:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How liquidated damages accrue (9.3.9)<\/div>\n <svg viewBox=\"0 0 660 290\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Liquidated damages accrual capped at five or ten per cent\">\n<defs><marker id=\"ax\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"axr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"64\" y1=\"250\" x2=\"64\" y2=\"34\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#ax)\"\/>\n<line x1=\"64\" y1=\"250\" x2=\"624\" y2=\"250\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#axr)\"\/>\n<text x=\"20\" y=\"145\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 20 145)\">LD %<\/text>\n<text x=\"344.0\" y=\"282\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\">weeks of delay<\/text>\n<line x1=\"64\" y1=\"150\" x2=\"624\" y2=\"150\" stroke=\"#c97c10\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"144\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c97c10\">5% cap<\/text>\n<line x1=\"64\" y1=\"50\" x2=\"624\" y2=\"50\" stroke=\"#c0392b\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"44\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">10% max<\/text>\n<path d=\"M64.0 250.0 L64.0 240.0 L101.9 240.0 L101.9 230.0 L139.7 230.0 L139.7 220.0 L177.6 220.0 L177.6 210.0 L215.4 210.0 L215.4 200.0 L253.3 200.0 L253.3 190.0 L291.1 190.0 L291.1 180.0 L329.0 180.0 L329.0 170.0 L366.9 170.0 L366.9 160.0 L404.7 160.0 L404.7 150.0 L442.6 150.0 L594.0 150.0\" fill=\"none\" stroke=\"#1c5da6\" stroke-width=\"2.8\"\/>\n<text x=\"56\" y=\"254\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">0%<\/text>\n<text x=\"56\" y=\"154\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">5%<\/text>\n<text x=\"215.42857142857142\" y=\"200.0\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">+0.5% \/ week<\/text>\n<\/svg>\n <div class=\"fig-cap\">LD is a genuine pre-estimate of loss, recoverable from the performance\/warranty guarantee. Extension may be granted with or without a denial clause; persistent default is a breach.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-quality\">\n <span class=\"section-badge amber\">\u00a7 9.4<\/span>\n <h3>Quality assurance & inspection<\/h3>\n <\/div>\n\n <div class=\"flow amber\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Preliminary inspection<\/div><div class=\"fs-text\">Goods received on a <strong>\"subject to inspection\"<\/strong> basis; a preliminary receipt acknowledges the claimed quantity.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Detailed inspection<\/div><div class=\"fs-text\">Before acceptance, the goods are tested per the specification's inspection stages and tests; defective goods may be returned (usually within <strong>90 days<\/strong> of the original inspection report).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">GRIR<\/div><div class=\"fs-text\">A <strong>Goods Receipt & Inspection Report (Annexure 25)<\/strong> records acceptance and is the basis for payment.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-breach\">\n <span class=\"section-badge red\">\u00a7 9.8<\/span>\n <h3>Breach, remedies & termination<\/h3>\n <\/div>\n\n <p>On default the procuring entity may, without prejudice to other rights, recover LD, encash the performance security, terminate for default, or undertake a <strong>risk purchase<\/strong> \u2014 re-procuring the goods at the defaulting contractor's risk and cost. Warranty failure attracts a penalty up to <strong>5%<\/strong> of contract value over the warranty period. Termination may also be for convenience or under force majeure.<\/p>\n\n <div class=\"section-heading-block\" id=\"c9-dispute\">\n <span class=\"section-badge purple\">\u00a7 9.9–9.10<\/span>\n <h3>Dispute resolution & closure<\/h3>\n <\/div>\n\n <p>Disputes should be settled at the lowest, least adversarial level possible, escalating only if that fails:<\/p>\n <ol class=\"parts-list decimal purple\">\n <li><strong>Amicable settlement \/ Mediation<\/strong> \u2014 guided by the <strong>Mediation Act, 2023<\/strong>; the process must normally be completed within <strong>120 days<\/strong>.<\/li>\n <li><strong>Conciliation<\/strong> \u2014 under Part III of the <strong>Arbitration & Conciliation Act, 1996<\/strong>.<\/li>\n <li><strong>Arbitration<\/strong> \u2014 under the Arbitration & Conciliation Act, 1996; the arbitrator is appointed within <strong>60 days<\/strong> of a valid demand, and the seat of arbitration is the place from which the Letter of Award \/ contract was issued.<\/li>\n <li><strong>Courts<\/strong> \u2014 only where the routes above do not resolve the dispute.<\/li>\n <\/ol>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Escalating routes to resolve a dispute (9.9)<\/div>\n <svg viewBox=\"0 0 680 250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Dispute resolution escalation ladder\">\n<defs><marker id=\"es\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"46\" y=\"196\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"131.0\" y=\"224.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Amicable \/ Mediation<\/text>\n<rect x=\"192\" y=\"146\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"277.0\" y=\"174.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Conciliation<\/text>\n<rect x=\"338\" y=\"96\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"423.0\" y=\"124.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Arbitration<\/text>\n<rect x=\"484\" y=\"46\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"569.0\" y=\"74.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Courts<\/text>\n<line x1=\"34\" y1=\"222\" x2=\"34\" y2=\"38\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#es)\"\/>\n<text x=\"22\" y=\"135\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 22 135)\">more formality<\/text>\n<\/svg>\n <div class=\"fig-cap\">On closure, accounts are reconciled, final payment is made and securities released; a contract is not closed merely because the final payment was made.<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz9\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 9 Quiz \u2014 quantity, time, quality & disputes<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 9. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage9\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c9-recap\">\n <div class=\"recap-title\">⚡ Chapter 9 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Option clause size<\/td><td>Ideally <strong>\u2264 25\u201330%<\/strong>; exercised after <strong>50%<\/strong> receipt<\/td><\/tr>\n <tr><td>Delivery period<\/td><td>The <strong>\"essence of the contract\"<\/strong><\/td><\/tr>\n <tr><td>Monthly-rate tolerance<\/td><td><strong>\u00b15%<\/strong> cumulative\/year (\u00b17%\/quarter) \u2014 no LD<\/td><\/tr>\n <tr><td>Liquidated Damages<\/td><td><strong>0.5%\/week<\/strong>; max <strong>5%<\/strong> (10% if performance allowed after inordinate delay)<\/td><\/tr>\n <tr><td>Warranty-failure penalty<\/td><td>Up to <strong>5%<\/strong> of contract value<\/td><\/tr>\n <tr><td>Inspection<\/td><td>Preliminary \u2192 detailed \u2192 <strong>GRIR (Annexure 25)<\/strong>; reject within ~90 days<\/td><\/tr>\n <tr><td>Default remedy<\/td><td><strong>Risk purchase<\/strong> at the contractor's risk & cost<\/td><\/tr>\n <tr><td>Arbitration \/ Conciliation<\/td><td><strong>Arbitration & Conciliation Act, 1996<\/strong>; seat = where LoA issued<\/td><\/tr>\n <tr><td>Mediation<\/td><td><strong>Mediation Act 2023<\/strong>; complete within 120 days<\/td><\/tr>\n <tr><td>Closure<\/td><td>Not closed merely because final payment was made<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch10\" data-chapter=\"10\">\n\n <div class=\"chapter-heading-block\" id=\"c10-scrap\">\n <span class=\"chapter-badge\">CH 10 \u00b7 DISPOSAL<\/span>\n <h2>Disposal of Scrap Goods<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What counts as scrap (10.1)<\/div>\n <div class=\"def-text\">\n Goods that cannot be usefully repaired or renovated are <strong>\"scrap\"<\/strong>. Occasionally scrap includes second-hand, well-kept or even new goods that are <strong>surplus<\/strong> to the organisation's need and may fetch a fair price. Disposal is, in effect, the mirror image of procurement: the buyer becomes the seller, and the <strong>highest bidder (H1)<\/strong> wins.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-survey\">\n <span class=\"section-badge blue\">\u00a7 10.2–10.3<\/span>\n <h3>Classification & survey<\/h3>\n <\/div>\n\n <p>Items are sorted into <strong>trade groups<\/strong> (e.g. for melting, re-rolling) \u2014 segregated and sorted scrap fetches better value and helps fix reserve prices. Before anything is sold as scrap, a <strong>Survey Committee<\/strong> appointed by the Head of Office must declare it so, recording why it is surplus, obsolete or unserviceable.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">Survey Cttee<\/div><div class=\"st-cap\">Declares items scrap after inspection; SoPP lays down the competent authority<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Book value<\/div><div class=\"st-cap\">Assessed value basis; or <strong>5%<\/strong> where book value is negligible\/unavailable<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Reserve price<\/div><div class=\"st-cap\">Recorded in a <strong>sealed, page-numbered register<\/strong> before disposal; never sold below it<\/div><\/div>\n <\/div>\n\n <p>The mode of disposal is driven by value: <strong>petty sale<\/strong> to local dealers for small\/petty scrap; a <strong>limited tender<\/strong> to local scrap dealers for <strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong>; and <strong>e-Auction<\/strong> (preferred, via NIC \/ MSTC \/ Railways) for scrap <strong>above Rs 4 lakh<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Modes of disposal by scrap value (10.4)<\/div>\n <svg viewBox=\"0 0 680 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Disposal modes by scrap value\">\n<defs><marker id=\"up2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"256\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up2)\"\/>\n<text x=\"24\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 140)\">higher scrap value<\/text>\n<rect x=\"62\" y=\"30\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#7e3eb5\"\/>\n<text x=\"84\" y=\"60\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Above Rs 4 lakh<\/text>\n<text x=\"84\" y=\"82\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">e-Auction (preferred)<\/text>\n<text x=\"644\" y=\"60\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#7e3eb5\">NIC \u00b7 MSTC<\/text>\n<rect x=\"62\" y=\"110\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"110\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"140\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Rs 15k \u2013 Rs 4 lakh<\/text>\n<text x=\"84\" y=\"162\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender<\/text>\n<text x=\"644\" y=\"140\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">local dealers<\/text>\n<rect x=\"62\" y=\"190\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"190\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"220\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Small \/ petty<\/text>\n<text x=\"84\" y=\"242\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Petty sale (quotation)<\/text>\n<text x=\"644\" y=\"220\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">local dealers<\/text>\n<\/svg>\n <div class=\"fig-cap\">For transfers to other Government departments \/ fit-to-use overstocks, the rate is <strong>book value + 20% overheads + 7.5% freight<\/strong>. Security-risk scrap (stamps, negotiable instruments) needs special, safe handling.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-process\">\n <span class=\"section-badge purple\">\u00a7 10.5–10.10<\/span>\n <h3>The disposal workflow<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Survey & declare<\/div><div class=\"fs-text\">Survey Committee inspects and declares the item scrap\/surplus, recording reasons.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Segregate & price<\/div><div class=\"fs-text\">Sort into trade groups; secure valuable non-ferrous metals; fix and seal the <strong>reserve price<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Choose mode<\/div><div class=\"fs-text\">Petty sale, LTE or <strong>e-auction<\/strong> by value \u2014 e-auction preferred for higher-value scrap.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Award to H1 & deliver<\/div><div class=\"fs-text\">Sale to the highest bidder at\/above reserve price; material delivered after payment.<\/div><\/div>\n <\/div>\n\n <p>Disposal must comply with environmental law depending on the material:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Power cells<\/div><div class=\"cat-title\">Batteries Rules<\/div><p>The Batteries (Management & Handling) Rules, <strong>2001<\/strong> (as amended) govern battery scrap.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Hazardous<\/div><div class=\"cat-title\">Hazardous Waste Rules<\/div><p>The Hazardous & Other Wastes (Management & Transboundary Movement) Rules govern hazardous scrap.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Electronics<\/div><div class=\"cat-title\">e-Waste Rules<\/div><p>The e-Waste (Management) Rules, <strong>2016<\/strong> (as amended) govern electronic scrap.<\/p><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz10\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 10 Quiz \u2014 survey, modes & reserve price<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 10. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage10\"><\/div>\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore10\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext10\" disabled>Next →<\/button><\/div>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c10-recap\">\n <div class=\"recap-title\">⚡ Chapter 10 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Scrap<\/td><td>Goods not usefully repairable; may include surplus\/obsolete<\/td><\/tr>\n <tr><td>Disposal vs procurement<\/td><td>Mirror image \u2014 <strong>highest bidder (H1)<\/strong> wins<\/td><\/tr>\n <tr><td>Declaration<\/td><td>By a <strong>Survey Committee<\/strong>; reasons recorded<\/td><\/tr>\n <tr><td>Valuation basis<\/td><td>Book value, or <strong>5%<\/strong> if negligible\/unavailable<\/td><\/tr>\n <tr><td>Reserve price<\/td><td>Sealed, page-numbered register; never sold below it<\/td><\/tr>\n <tr><td>Petty sales<\/td><td>Small\/petty scrap to local dealers on quotation<\/td><\/tr>\n <tr><td>LTE mode<\/td><td><strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong> \u2014 limited tender to local dealers<\/td><\/tr>\n <tr><td>e-Auction mode<\/td><td>Above <strong>Rs 4 lakh<\/strong> \u2014 preferred; NIC \/ MSTC \/ Railways<\/td><\/tr>\n <tr><td>Inter-dept transfer rate<\/td><td>Book value + <strong>20%<\/strong> overheads + <strong>7.5%<\/strong> freight<\/td><\/tr>\n <tr><td>Compliance<\/td><td>Batteries Rules 2001 \u00b7 Hazardous Waste Rules \u00b7 e-Waste Rules 2016<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n <\/main>\n<\/div>\n<script>\n\/* \u2500\u2500\u2500\u2500\u2500 Chapter (tab) switching + sidebar navigation \u2500\u2500\u2500\u2500\u2500 *\/\n(function(){\n var details = Array.prototype.slice.call(document.querySelectorAll('details.toc-chapter'));\n var panes = Array.prototype.slice.call(document.querySelectorAll('section.chapter-pane'));\n\n function showChapter(n, scrollTop){\n panes.forEach(function(p){ p.classList.toggle('active', p.getAttribute('data-chapter') === String(n)); });\n if (scrollTop){\n var pane = document.getElementById('pane-ch'+n);\n if (pane) pane.scrollIntoView({behavior:'smooth', block:'start'});\n }\n }\n\n details.forEach(function(d){\n d.addEventListener('toggle', function(){\n if (d.open){\n details.forEach(function(o){ if (o !== d) o.open = false; });\n showChapter(d.getAttribute('data-chapter'), false);\n }\n });\n });\n\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a[href^=\"#\"]')).forEach(function(a){\n a.addEventListener('click', function(e){\n var id = a.getAttribute('href').slice(1);\n var target = document.getElementById(id);\n if (!target) return;\n e.preventDefault();\n var pane = target.closest('.chapter-pane');\n if (pane){\n var ch = pane.getAttribute('data-chapter');\n var d = document.querySelector('details.toc-chapter[data-chapter=\"'+ch+'\"]');\n if (d && !d.open) d.open = true;\n showChapter(ch, false);\n }\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a.active')).forEach(function(x){ x.classList.remove('active'); });\n a.classList.add('active');\n requestAnimationFrame(function(){ target.scrollIntoView({behavior:'smooth', block:'start'}); });\n });\n });\n})();\n\n\/* \u2500\u2500\u2500\u2500\u2500 Quiz factory \u2500\u2500\u2500\u2500\u2500 *\/\nfunction buildQuiz(stageId, scoreId, nextId, questions){\n var stage = document.getElementById(stageId);\n var scoreEl = document.getElementById(scoreId);\n var nextBtn = document.getElementById(nextId);\n if (!stage) return;\n var idx = 0, score = 0, answered = 0;\n\n function render(){\n var q = questions[idx];\n var html = '<div class=\"quiz-q\"><span class=\"q-tag\">Q'+(idx+1)+'<\/span><span>'+q.q+'<\/span><\/div><div class=\"quiz-opts\">';\n q.opts.forEach(function(opt, i){ html += '<button class=\"quiz-opt\" data-i=\"'+i+'\">'+opt+'<\/button>'; });\n html += '<\/div><div class=\"quiz-fb\"><\/div>';\n stage.innerHTML = html;\n var fb = stage.querySelector('.quiz-fb');\n var opts = Array.prototype.slice.call(stage.querySelectorAll('.quiz-opt'));\n opts.forEach(function(b){\n b.addEventListener('click', function(){\n var chosen = parseInt(b.getAttribute('data-i'), 10);\n opts.forEach(function(x){ x.classList.add('lock'); });\n opts[q.a].classList.add('correct');\n if (chosen === q.a){ score++; }\n else { b.classList.add('wrong'); }\n answered++;\n scoreEl.textContent = 'Score '+score+' \/ '+answered;\n fb.innerHTML = (chosen === q.a ? '<strong>Correct.<\/strong> ' : '<strong>Not quite.<\/strong> ') + q.fb;\n nextBtn.disabled = (idx >= questions.length - 1);\n if (idx >= questions.length - 1){ nextBtn.textContent = 'Done \\u2713'; }\n });\n });\n }\n nextBtn.addEventListener('click', function(){\n if (idx < questions.length - 1){ idx++; nextBtn.disabled = true; render(); }\n });\n render();\n}\n\nbuildQuiz('quizStage1','quizScore1','quizNext1',[\n {q:'At the apex of the statutory framework governing public procurement is \\u2014', opts:['Article 112','Article 266','Article 299','Article 280'], a:2, fb:'Article 299 of the Constitution requires that contracts binding on the Government be executed in writing by officers specifically authorised to do so.'},\n {q:'In the Central Government, the comprehensive rules for public procurement are mainly found in \\u2014', opts:['A dedicated Public Procurement Act','GFR 2017 (chapters 6 to 9) and the DFPR','The Sale of Goods Act, 1930','The Companies Act, 2013'], a:1, fb:'There is no exclusive procurement law; the rules sit in the General Financial Rules, 2017 (especially chapters 6 to 9), the DFPR and various Government orders.'},\n {q:'Procurement of common-use goods and services that are available on GeM is governed by \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 153 of GFR 2017','Rule 173 of GFR 2017'], a:1, fb:'Rule 149 of GFR 2017 makes procurement through the Government e-Marketplace (GeM) mandatory for common-use goods and services.'},\n {q:'Which of the following is NOT one of the Five R\\u2019s of Procurement?', opts:['Right Quality','Right Price','Right Source','Right Profit'], a:3, fb:'The Five R\\u2019s are Right Quality, Right Quantity, Right Price, Right Time & Place, and Right Source \\u2014 each aimed at the optimal balance, not the cheapest or most.'},\n {q:'The Standards (Canons) of Financial Propriety are set out in which rule of the GFR 2017?', opts:['Rule 21','Rule 144','Rule 149','Rule 153'], a:0, fb:'Rule 21 lays down the canons of financial propriety, including the test that an officer exercise the same vigilance over public money as a person of ordinary prudence would over their own.'},\n {q:'Under the Make-in-India (MII) Order 2017, the minimum local content to be a \\u2018Class-I local supplier\\u2019 is \\u2014', opts:['20 per cent','40 per cent','50 per cent','75 per cent'], a:2, fb:'A Class-I local supplier needs minimum 50% local content; a Class-II local supplier needs minimum 20%. The margin of purchase preference is 20%.'},\n {q:'Central Ministries\/Departments\/PSUs must procure a minimum percentage of their annual value of goods and services from Micro and Small Enterprises equal to \\u2014', opts:['10 per cent','20 per cent','25 per cent','33 per cent'], a:2, fb:'The Public Procurement Policy for MSEs sets a minimum 25% target, with sub-targets of 4% for SC\/ST-owned and 3% for women-owned MSEs.'},\n {q:'The Comptroller and Auditor General of India is established under which Articles of the Constitution?', opts:['Articles 112\\u2013114','Articles 148\\u2013151','Articles 149\\u2013151','Articles 266\\u2013267'], a:2, fb:'The CAG, the Supreme Audit Institution of India, is established under Articles 149\\u2013151 of the Constitution.'},\n {q:'A procurement valued below which threshold is exempt from the Make-in-India Order 2017?', opts:['Rs. 1 lakh','Rs. 5 lakh','Rs. 50 lakh','Rs. 1 crore'], a:1, fb:'Procurements with an estimated value below Rs. 5 lakh are exempt from the MII Order, provided procurement is not split to avoid the Order.'}\n]);\n\nbuildQuiz('quizStage2','quizScore2','quizNext2',[\n {q:'Procurement of goods should normally be initiated only on the basis of \\u2014', opts:['A market survey','An indent from the user Department','A budgetary quote','A CAG recommendation'], a:1, fb:'Procurement should be initiated only on an indent (Purchase Requisition) from the user Department, which first determines the need and anticipated quantum.'},\n {q:'Where a brand or trade name is unavoidable in describing a requirement, it should be followed by the words \\u2014', opts:['\\u201Cor better\\u201D','\\u201Cor substantially equivalent\\u201D','\\u201Cor approved equal\\u201D','\\u201Cas per sample\\u201D'], a:1, fb:'Except for proprietary single-source purchase, brand names should be avoided; where unavoidable, the description must add \\u201Cor substantially equivalent.\\u201D'},\n {q:'For obtaining budgetary quotes to estimate cost, the ideal number of quotes to be sought is \\u2014', opts:['One','Two','Three','Five'], a:2, fb:'Ideally three budgetary quotes should be obtained (within about 10\\u201321 days, with two extensions allowed); if fewer are received, the estimate is framed on the average of those received.'},\n {q:'Technical specifications should normally be based on \\u2014', opts:['International standards only','Bureau of Indian Standards (BIS) standards where they exist','The supplier\\u2019s catalogue','The cheapest available product'], a:1, fb:'Specifications should be based on recognised national standards (BIS) where they exist, with preference for BIS-marked goods; international standards apply only in their absence, with reasons recorded.'},\n {q:'The Bureau of Energy Efficiency (BEE) was established under the Energy Conservation Act, 2001, on \\u2014', opts:['1 January 2000','1 March 2002','1 April 2006','1 January 2015'], a:1, fb:'The BEE was set up on 1 March 2002; its Standards & Labelling Programme (2006) rates appliances by stars \\u2014 the higher the stars, the more efficient.'},\n {q:'Before granting administrative\/budgetary approval of an indent, it must first be certified that \\u2014', opts:['Three bids have been received','Budget funds are available and liability is noted','The CAG has been consulted','The item carries a BIS mark'], a:1, fb:'Approval of an indent requires certification that funds are available in the budget and that liability for the indent is noted against the total available budget.'},\n {q:'The Annual Procurement Plan published on GeM\/CPPP \\u2014', opts:['Initiates the procurement process','Confers a right on bidders to a tender','Does not amount to initiation of procurement','Replaces the indent'], a:2, fb:'Under Rule 144(x) of GFR 2017, publication of the Annual Procurement Plan is expressly not an initiation of procurement and casts no obligation or right regarding any tender.'},\n {q:'A procuring authority should normally neither package nor split its procurement to limit competition or avoid higher sanction, under \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 157 of GFR 2017','Rule 173 of GFR 2017'], a:2, fb:'Rule 157 of GFR 2017 bars packaging\/splitting to limit competition or avoid sanction, though division is allowed for recorded reasons such as efficiency, economy or MSE access.'},\n {q:'The stage at which cartel formation can be most effectively addressed is \\u2014', opts:['Bid opening','Contract management','Need assessment and procurement planning','Disposal of scrap'], a:2, fb:'Need assessment and procurement planning is the main stage to mitigate cartels \\u2014 by widening the supplier base and varying the mode, quantity and qualification criteria.'}\n]);\n\nbuildQuiz('quizStage3','quizScore3','quizNext3',[\n {q:'The Code of Integrity for Public Procurement is laid down in which rule of the GFR 2017?', opts:['Rule 144','Rule 150','Rule 175','Rule 161'], a:2, fb:'Rule 175 of GFR 2017 sets out the Code of Integrity, which both procuring officials and bidders\/suppliers must observe.'},\n {q:'Collusion or bid-rigging between bidders falls under which prohibited practice?', opts:['Corrupt practice','Anti-competitive practice','Coercive practice','Obstructive practice'], a:1, fb:'Collusion, bid-rigging or any arrangement under the Competition Act, 2002 is an \\u201Canti-competitive practice\\u201D \\u2014 one of the seven prohibited practices.'},\n {q:'Under the Code of Integrity, a bidder must disclose previous transgressions of the code over the last \\u2014', opts:['One year','Two years','Three years','Five years'], a:2, fb:'Bidders must declare any transgression of the code with any entity in any country during the last three years, or any debarment by another procuring entity.'},\n {q:'As guidance, the Integrity Pact threshold should cover what share of a Ministry\\u2019s annual procurement by value?', opts:['25\\u201340%','50\\u201360%','80\\u201390%','100%'], a:2, fb:'The threshold should be set so the Integrity Pact covers the bulk \\u2014 about 80 to 90 per cent by value \\u2014 of annual procurement expenditure.'},\n {q:'A bidder aggrieved by a decision of the procuring entity may seek review within \\u2014', opts:['3 days','5 days','15 days','30 days'], a:1, fb:'An affected bidder may apply for review within five days of the decision; a post-award grievance must be redressed and closed within 30 days.'},\n {q:'In the registration grading, Grade-A covers orders valued at \\u2014', opts:['Rs 1 lakh and above','Rs 5 lakh and above','Rs 25 lakh and above','Rs 50 lakh and above'], a:2, fb:'Grade-A covers orders of Rs 25 lakh and above; Grade-B Rs 5\\u201325 lakh; Grade-C Rs 1\\u20135 lakh. Registration is governed by Rule 150.'},\n {q:'A bidder convicted under the Prevention of Corruption Act may be debarred under Rule 151 for a period not exceeding \\u2014', opts:['Six months','One year','Two years','Three years'], a:3, fb:'Under Rule 151, a bidder convicted under the PC Act (or IPC for loss of life\/property in a procurement contract) may be debarred for up to three years.'},\n {q:'Debarment of a firm is best treated as \\u2014', opts:['A vigilance function','An executive function','A judicial function','An audit function'], a:1, fb:'Debarment is an executive function and should not be allocated to the Vigilance unit; it follows a reasonable opportunity to represent.'}\n]);\n\nbuildQuiz('quizStage4','quizScore4','quizNext4',[\n {q:'The mode of procurement primarily addresses which of the Five R\\u2019s?', opts:['Right Quality','Right Price','Right Source','Right Time'], a:2, fb:'The mode of procurement varies the width and specificity of the bidder catchment \\u2014 it is the \\u201CRight Source\\u201D of the Five R\\u2019s.'},\n {q:'The default mode of procurement, used for requirements above Rs 50 lakh, is \\u2014', opts:['Limited Tender Enquiry','Open Tender Enquiry','Single Tender Enquiry','Direct purchase'], a:1, fb:'Open Tender Enquiry (OTE) is the default mode (Rule 161), used above Rs 50 lakh; it seeks the widest competition and gives the best value for money.'},\n {q:'A Global Tender Enquiry shall generally NOT be invited up to a value of \\u2014', opts:['Rs 50 lakh','Rs 5 crore','Rs 50 crore','Rs 200 crore'], a:3, fb:'No GTE is invited up to Rs 200 crore (or any limit prescribed by DoE) without the approval of the competent authority designated by the Department of Expenditure.'},\n {q:'A distinctive feature of a Rate Contract \/ Framework Agreement is that \\u2014', opts:['A fixed quantity is guaranteed','No quantity is mentioned or guaranteed','It is always a single-source contract','It cannot be cancelled'], a:1, fb:'In a Rate Contract no quantity is mentioned, nor is any minimum drawable quantity guaranteed; supply orders are placed against the agreed rate during its validity.'},\n {q:'A Limited Tender Enquiry (LTE) may be used for procurements up to \\u2014', opts:['Rs 5 lakh','Rs 25 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'LTE (Rule 162) is used up to Rs 50 lakh and must be sent to more than three registered vendors; above Rs 50 lakh, a Special LTE is allowed only in exceptional circumstances.'},\n {q:'Direct procurement without quotation (petty purchase) is permitted up to \\u2014', opts:['Rs 25,000 per case','Rs 50,000 per case','Rs 1 lakh per case','Rs 5 lakh per case'], a:1, fb:'Direct purchase without quotation is allowed up to Rs 50,000 per case (Rule 154) \\u2014 enhanced to Rs 1 lakh for scientific Ministries\/Departments.'},\n {q:'Procurement by a local Purchase Committee of three members applies to values \\u2014', opts:['Up to Rs 50,000','Rs 50,000 to Rs 5 lakh','Rs 5 lakh to Rs 25 lakh','Above Rs 50 lakh'], a:1, fb:'A three-member Purchase Committee (Rule 155) handles procurements above Rs 50,000 and up to Rs 5 lakh (Rs 10 lakh for scientific bodies).'},\n {q:'On GeM, a direct purchase above Rs 50,000 and up to Rs 10 lakh must be from the lowest-priced seller among \\u2014', opts:['Any single seller','At least two manufacturers','At least three different manufacturers','At least five sellers'], a:2, fb:'Between Rs 50,000 and Rs 10 lakh, the buyer purchases from the GeM seller with the lowest price among at least three different manufacturers; above Rs 10 lakh, bidding or reverse auction is used.'}\n]);\n\n\nbuildQuiz('quizStage5','quizScore5','quizNext5',[\n {q:'The contents of a tender document are governed by which rule of the GFR 2017?', opts:['Rule 161','Rule 165','Rule 168','Rule 173'], a:2, fb:'Rule 168 lays down the contents of the tender document \\u2014 the eight ordered sections from the NIT to the Qualification & Evaluation Criteria.'},\n {q:'In a tender document, conditions that apply only after the announcement of the award are placed in the \\u2014', opts:['Instructions to Bidders (ITB)','General Conditions of Contract (GCC)','Notice Inviting Tender (NIT)','Schedule of Requirements'], a:1, fb:'The GCC covers everything from the announcement of award to contract closure; the ITB covers everything up to the award.'},\n {q:'The three successive filters applied to bidders, in order, are \\u2014', opts:['Evaluation \\u2192 Eligibility \\u2192 Qualification','Eligibility \\u2192 Qualification \\u2192 Evaluation','Qualification \\u2192 Eligibility \\u2192 Evaluation','Eligibility \\u2192 Evaluation \\u2192 Qualification'], a:1, fb:'Eligibility decides who may participate, qualification tests capability to perform, and evaluation selects the most advantageous bid.'},\n {q:'If the tender document does not specify a bid-validity period, the default is \\u2014', opts:['30 days','45 days','60 days','90 days'], a:3, fb:'A bid remains valid for 90 days if no period is specified; a bid valid for a shorter period than required is rejected as non-responsive.'},\n {q:'The minimum time normally allowed to bidders rises to four weeks when \\u2014', opts:['The value exceeds Rs 50 lakh','International participation is contemplated','The mode is a limited tender','An Integrity Pact applies'], a:1, fb:'At least three weeks are normally allowed, rising to not less than four weeks where international participation is contemplated.'},\n {q:'A bid that quotes NIL charges\/consideration shall be \\u2014', opts:['Treated as the lowest bid','Treated as unresponsive','Accepted with a clarification','Referred to the Tender Committee'], a:1, fb:'The tender document must provide that a NIL quote is treated as unresponsive and not considered.'},\n {q:'Late bids received after the deadline for receipt of bids are governed by which rule, under which they are not considered?', opts:['Rule 161','Rule 165','Rule 170','Rule 173'], a:1, fb:'Under Rule 165, bids received after the specified deadline are not considered; the Bid Opening Committee has no authority to reject a bid at the opening stage.'},\n {q:'A pre-bid conference is most appropriate for \\u2014', opts:['All petty purchases','Routine off-the-shelf goods','Turnkey or sophisticated, costly equipment','Rate contracts'], a:2, fb:'Pre-bid conferences are provided mainly for turnkey contracts and sophisticated, costly equipment, to clarify the tender before bids are submitted.'}\n]);\n\nbuildQuiz('quizStage6','quizScore6','quizNext6',[\n {q:'Bid Security (EMD) should ordinarily range between \\u2014', opts:['1% and 2% of estimated value','2% and 5% of estimated value','5% and 10% of estimated value','3% and 10% of estimated value'], a:1, fb:'Under Rule 170, Bid Security ordinarily ranges between 2% and 5% of the estimated value of the goods, rounded to the nearest thousand.'},\n {q:'Which bidders are exempt from payment of EMD?', opts:['All registered bidders','MSEs and DPIIT-recognised start-ups','Only CPSEs','Foreign bidders in GTE'], a:1, fb:'Micro & Small Enterprises and DPIIT-recognised start-ups are exempt from EMD; in place of bid security, a Bid Securing Declaration may also be permitted.'},\n {q:'Performance Security for a goods contract is normally \\u2014', opts:['1\\u20132% of contract value','2\\u20135% of contract value','3\\u20135% of contract value','10\\u201315% of contract value'], a:2, fb:'Performance Security is 3\\u20135% of contract value for goods (3\\u201310% for Works), under Rule 171.'},\n {q:'Submission of Performance Security is not necessary for a tender value up to \\u2014', opts:['Rs 5 lakh','Rs 10 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'Performance Security is not necessary for a tender value up to Rs 50 lakh; it is otherwise valid for 60 days beyond all contractual obligations.'},\n {q:'An Insurance Surety Bond is distinctive because it \\u2014', opts:['Requires full collateral with the surety','Is a premium-based product needing no collateral','Is issued only by the RBI','Is valid only abroad'], a:1, fb:'Unlike a bank guarantee, an Insurance Surety Bond is a premium-based, three-party product that does not require the principal to deposit collateral.'},\n {q:'The quantum of advance payment to a State\/Central Government agency or PSE should generally not exceed \\u2014', opts:['15%','30%','40%','50%'], a:2, fb:'Advance to a State\/Central Government agency or PSE should not generally exceed 40% of the contract value, secured by a bank guarantee of at least 110% of the advance.'},\n {q:'A contract with deliveries longer than 12 months should normally carry a \\u2014', opts:['Firm and fixed price','Price Variation Clause','NIL price','Single source price'], a:1, fb:'Deliveries up to 12 months are normally on a firm and fixed price; deliveries longer than 12 months use a Price Variation Clause with a base date, time-lag and ceiling.'},\n {q:'An electronic Bank Guarantee (e-BG) is processed on the portal of \\u2014', opts:['GeM','CPPP','NeSL','RBI'], a:2, fb:'An e-BG is a dematerialised bank guarantee processed on the NeSL portal; verification with NeSL is sufficient, without verifying with the issuing bank.'}\n]);\n\nbuildQuiz('quizStage7','quizScore7','quizNext7',[\n {q:'For procurements with financial implications above Rs 50 lakh, evaluation is normally done by a Tender Committee of \\u2014', opts:['One member','Two members','Three members','Five members'], a:2, fb:'A Tender Committee above Rs 50 lakh normally comprises three members, including a finance member nominated by the FA and a user representative.'},\n {q:'Rule 173(xxii) of GFR 2017 requires that, above Rs 50 lakh, no Tender Committee member \\u2014', opts:['Is from the finance wing','Reports directly to another member','Is a technical expert','Attends the bid opening'], a:1, fb:'Rule 173(xxii) bars a member who reports directly to another member, to preserve independence; the recommending authority must also not be the accepting authority.'},\n {q:'Where unit price \\u00d7 quantity does not equal the stated total, which prevails?', opts:['The total price','The unit price','The higher of the two','The bidder is asked to choose'], a:1, fb:'The unit price prevails and the total is corrected; sub-totals prevail over a mis-added grand total; and words prevail over figures.'},\n {q:'Between an amount written in words and the same amount in figures, the binding amount is \\u2014', opts:['The figures','The words','The lower amount','The higher amount'], a:1, fb:'The amount in words prevails over the amount in figures; likewise the original copy prevails over a scanned copy.'},\n {q:'A deviation that affects the scope, quality or performance of the product is \\u2014', opts:['A minor deviation that may be condoned','A substantive deviation leading to rejection','Always ignored','Only relevant in Works'], a:1, fb:'Such a deviation is substantive and the bid is rejected as non-responsive; minor deviations with no fiscal or ranking impact may be condoned after clarification.'},\n {q:'The reasonableness of the recommended price is judged mainly against the \\u2014', opts:['Highest bid received','Last Purchase Price','Bidder\\u2019s catalogue','Budget estimate alone'], a:1, fb:'Reasonableness is judged mainly against the Last Purchase Price, updated for quantity, delivery and terms, triangulating more than one method of estimation.'},\n {q:'When a parallel contract splits the quantity between two suppliers, the typical ratio is \\u2014', opts:['50:50','60:40','70:30','80:20'], a:2, fb:'A split between two suppliers is typically in the ratio 70:30, with L1 awarded at least the prescribed share.'},\n {q:'Price negotiation after bid opening, where unavoidable, must be conducted \\u2014', opts:['With all bidders','Only with L1','With L1 and L2','With the lowest three bidders'], a:1, fb:'Under Rule 173(xiv), negotiation is severely discouraged and, where unavoidable, is conducted only with L1 \\u2014 never extended to other bidders, even if cartel rates are suspected.'}\n]);\n\n\nbuildQuiz('quizStage8','quizScore8','quizNext8',[\n {q:'Among the fast-track modes for an operational emergency, the fastest suggested route is \\u2014', opts:['Open Tender Enquiry','Procurement through the GeM portal','Global Tender Enquiry','Two-stage bidding'], a:1, fb:'Procurement through GeM is the fastest suggested route, followed by direct purchase, purchase committee, and SLTE\/LTE\/STE with reduced bid time.'},\n {q:'In a declared crisis, the minimum time for bid submission may be shortened to about \\u2014', opts:['1\\u20133 days','1\\u20132 weeks','three weeks','four weeks'], a:0, fb:'Crisis dispensations allow timelines as short as 1\\u20133 days, and bids may even be received by phone, email or in person.'},\n {q:'During an emergency, which documents normally do NOT apply?', opts:['The GFR itself','Model Tender Documents and standard GCC','The SoPP','The Constitution'], a:1, fb:'Model Tender Documents and the standard General Conditions of Contract do not apply to emergency procurement; norms like EMD, SD and LD may also be relaxed.'},\n {q:'A buy-back offer, where an old item is traded in while buying a new one, is provided for in \\u2014', opts:['Rule 144','Rule 169','Rule 176','Rule 154'], a:2, fb:'Under Rule 176, the bidder is asked to quote both with a rebate for the old item and without it, giving the department the option to trade or not.'},\n {q:'Acquisition of capital goods differs from consumables mainly because it \\u2014', opts:['Needs no budget','Is an investment decision against an item-specific budget','Is always single-source','Is exempt from inspection'], a:1, fb:'Capital goods are procured against an item-specific budgetary provision and are treated as an investment decision, often judged on Total Cost of Ownership.'},\n {q:'An Annual Maintenance Contract (Rule 169) should begin \\u2014', opts:['On the date of order','Before delivery','After the warranty period expires','Only at contract closure'], a:2, fb:'The AMC starts after the warranty period, during which the supplier maintains the goods free of cost; it may be with the OEM or another competent firm.'},\n {q:'In the NPV example used for evaluating capital-goods offers, the discount rate is taken as \\u2014', opts:['5%','7%','10%','12%'], a:1, fb:'The illustrative discount rate is 7%; the NPV is computed conveniently using the NPV function in Excel.'},\n {q:'In the procurement of books and print media, the L1 (best) offer is the one with the \\u2014', opts:['Lowest list price','Highest discount on published price','Fastest delivery','Largest catalogue'], a:1, fb:'Offers are solicited as a net discount over the published price, and the vendor offering the most competitive discount is treated as L1.'}\n]);\n\nbuildQuiz('quizStage9','quizScore9','quizNext9',[\n {q:'A plus\/minus option clause for varying quantity should ideally not exceed \\u2014', opts:['5\\u201310%','15\\u201320%','25\\u201330%','40\\u201350%'], a:2, fb:'The option clause should ideally not exceed 25\\u201330% of the original quantity and is normally exercised after receipt of 50% of the quantity, with CA approval.'},\n {q:'In contract law terms, the delivery period stipulated in a contract is treated as \\u2014', opts:['A guideline only','The essence of the contract','Negotiable at any time','Irrelevant to LD'], a:1, fb:'The delivery period is the \"essence of the contract\"; vague terms like \"immediately\" are avoided as they are not legally binding.'},\n {q:'Liquidated Damages for delayed delivery typically accrue at \\u2014', opts:['0.1% per week','0.5% per week','2% per week','5% per week'], a:1, fb:'LD is typically 0.5% (half per cent) of contract value per week of delay, recoverable from the performance\/warranty guarantee.'},\n {q:'The normal maximum on Liquidated Damages is \\u2014', opts:['2% of contract value','5% of contract value','10% of contract value','25% of contract value'], a:1, fb:'The normal cap on LD is 5% of contract value, rising to a maximum of 10% only where performance is allowed after inordinate delays.'},\n {q:'The basis for payment, prepared after inspection and acceptance of the goods, is the \\u2014', opts:['Letter of Award','Goods Receipt & Inspection Report (GRIR)','Comparative statement','Bid opening report'], a:1, fb:'The GRIR (Annexure 25) is prepared after inspection and acceptance and is the basis for receiving and paying for the material.'},\n {q:'When a contractor defaults, re-procuring the goods at the defaulter\\u2019s risk and cost is known as \\u2014', opts:['Risk purchase','Force majeure','Novation','Rate contract'], a:0, fb:'A risk purchase re-procures the goods at the defaulting contractor\\u2019s risk and cost \\u2014 one of the remedies for breach, alongside LD and encashment of performance security.'},\n {q:'Arbitration and conciliation of contract disputes are governed by the \\u2014', opts:['Contract Act, 1872','Arbitration and Conciliation Act, 1996','Sale of Goods Act, 1930','Competition Act, 2002'], a:1, fb:'The Arbitration and Conciliation Act, 1996 governs arbitration and conciliation; the seat of arbitration is the place from which the Letter of Award or contract is issued.'},\n {q:'Mediation of disputes is governed by the Mediation Act 2023 and must normally be completed within \\u2014', opts:['30 days','60 days','120 days','one year'], a:2, fb:'Mediation under the Mediation Act, 2023 must normally be completed within 120 days; if the dispute survives, parties may escalate.'}\n]);\n\nbuildQuiz('quizStage10','quizScore10','quizNext10',[\n {q:'In disposal, which bidder is selected \\u2014 the mirror image of procurement?', opts:['L1 (lowest)','H1 (highest)','The first bidder','Any registered dealer'], a:1, fb:'Disposal is the reverse of procurement: the highest bidder (H1) wins, and material is never sold below the reserve price.'},\n {q:'Before an item of stores can be sold as scrap, it must first be declared so by the \\u2014', opts:['Tender Committee','Survey Committee','Bid Opening Committee','Reserve Price Committee'], a:1, fb:'A Survey Committee appointed by the Head of Office inspects and declares the item scrap\/surplus\/obsolete, recording the reasons.'},\n {q:'Where an item\\u2019s book value is negligible or unavailable, its assessed value may be taken as \\u2014', opts:['1% of original cost','5% of original cost','10% of original cost','Nil'], a:1, fb:'The assessed value is based on book value, or 5% where the book value is negligible or unavailable.'},\n {q:'Scrap valued between Rs 15,000 and Rs 4 lakh is normally disposed of by \\u2014', opts:['Petty sale','Limited Tender to local scrap dealers','e-Auction only','Negotiation'], a:1, fb:'Scrap above Rs 15,000 and up to Rs 4 lakh is sold on a limited-tender basis to locally known scrap dealers in the relevant category.'},\n {q:'For scrap valued above Rs 4 lakh, the preferred mode of disposal is \\u2014', opts:['Petty sale','Limited Tender','e-Auction (NIC \/ MSTC \/ Railways)','Direct sale'], a:2, fb:'Above Rs 4 lakh, e-Auction is the preferred mode \\u2014 using platforms such as NIC, MSTC or Indian Railways \\u2014 though a disposal tender or public auction may also be used.'},\n {q:'The reserve price for a disposal lot must be \\u2014', opts:['Published in the NIT','Recorded in a sealed, page-numbered register before disposal','Set after bids are opened','Equal to the book value'], a:1, fb:'The reserve price is recorded on a page-numbered register and sealed before the disposal date; material is never sold below it.'},\n {q:'When fit-to-use surplus is transferred to another Government department, the rate is book value plus \\u2014', opts:['10% overheads + 5% freight','20% overheads + 7.5% freight','25% overheads + 10% freight','no addition'], a:1, fb:'Such transfers are priced at book value plus 20% overheads plus 7.5% freight.'},\n {q:'Disposal of electronic scrap must comply with the \\u2014', opts:['Batteries Rules 2001','e-Waste (Management) Rules, 2016','Sale of Goods Act, 1930','URDG 758'], a:1, fb:'Electronic scrap is governed by the e-Waste (Management) Rules, 2016; battery scrap by the Batteries Rules 2001, and hazardous scrap by the Hazardous Wastes Rules.'}\n]);\n\n<\/script>\n\n<\/body>\n<\/html>\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n<title>Manual for Procurement of Goods (2024) \u2014 Interactive Study Notes<\/title>\n<style>\n.elementor-section.elementor-section-stretched,\n .elementor-section-full_width,\n .elementor-container,\n .elementor-column,\n .elementor-column-wrap,\n .elementor-widget-wrap,\n .elementor-element {\n padding: 0 !important;\n margin: 0 !important;\n gap: 0 !important;\n }\n\n *, *::before, *::after { box-sizing: border-box; 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font-weight:700; line-height:1.18; margin-bottom:14px; color:#fff; text-shadow:0 2px 8px rgba(0,0,0,0.20); }\n .hero-sub { font-size:15px; opacity:0.93; margin-bottom:24px; max-width:740px; color:#fff; }\n .hero-pills { display:flex; flex-wrap:wrap; gap:8px; }\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); }\n\n .scope-banner { background:#fff7ec; border-bottom:1px solid #f0dcb8; padding:10px 48px; }\n .scope-inner { max-width:1120px; margin:0 auto; font-size:13px; color:#8a5a10; display:flex; align-items:center; gap:8px; }\n .scope-inner strong { color:#6b4408; }\n\n .breadcrumb-bar { background:#fff; border-bottom:1px solid var(--border); padding:10px 48px; }\n .breadcrumb-inner { max-width:1120px; margin:0 auto; font-size:12.5px; color:#aaa; display:flex; align-items:center; gap:6px; }\n .breadcrumb-inner a { color:var(--blue); }\n .breadcrumb-inner a:hover { text-decoration:underline; }\n .breadcrumb-inner .sep { color:#ddd; }\n\n .layout { max-width:1120px; margin:0 auto; padding:44px 48px 88px; display:grid; grid-template-columns:264px 1fr; gap:56px; align-items:start; }\n\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); }\n .chapter-heading-block:first-child { margin-top:0; }\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; }\n .chapter-heading-block h2 { font-family:'Crimson Pro',Georgia,serif; font-size:23px; font-weight:700; color:var(--navy); margin:0; }\n\n .section-heading-block { display:flex; align-items:center; gap:12px; margin:38px 0 14px; }\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; }\n .section-badge.amber{background:var(--amber);} .section-badge.teal{background:var(--teal);}\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);}\n .section-heading-block h3 { font-size:17px; font-weight:700; color:var(--navy); margin:0; }\n\n .article h4 { font-size:14.5px; font-weight:700; color:var(--navy); margin:22px 0 10px; }\n .article p { color:#2c3e50; margin-bottom:12px; text-align:justify; hyphens:auto; }\n .article strong { color:#111; }\n .layout > .article, .layout > .sidebar { min-width:0; }\n .table-wrap { max-width:100%; }\n\n .icon-list { list-style:none; margin:0 0 14px; display:flex; flex-direction:column; gap:8px; }\n .icon-list li { display:flex; align-items:flex-start; gap:10px; font-size:15px; color:#2c3e50; line-height:1.78; text-align:justify; }\n .icon-list li .ico { font-size:15px; flex-shrink:0; margin-top:4px; width:20px; text-align:center; }\n\n .callout { position:relative; padding:15px 18px 16px; margin:18px 0 22px; background:#f6faff;\n border:1px solid #e3edf8; border-left:3px solid var(--blue); border-radius:4px 9px 9px 4px;\n transition:box-shadow .18s ease, transform .18s ease; }\n .callout:hover { box-shadow:0 6px 20px -12px rgba(20,40,80,.35); }\n .callout > p { text-align:justify; }\n .callout > p:last-child { margin-bottom:0; }\n\n .callout-label { display:flex; align-items:center; gap:9px; margin-bottom:11px;\n font-family:'DM Sans',sans-serif; font-size:10.5px; font-weight:700;\n text-transform:uppercase; letter-spacing:0.11em; color:var(--blue); }\n .callout-label::before { content:'\\25C6'; flex:none; width:23px; height:23px; border-radius:6px;\n display:inline-grid; place-items:center; background:var(--blue); color:#fff;\n font-family:'JetBrains Mono',monospace; font-size:12px; line-height:1;\n box-shadow:0 1px 0 rgba(0,0,0,.12) inset, 0 2px 5px -2px rgba(0,0,0,.4); }\n\n .callout.blue { background:#f6faff; border-left-color:var(--blue); }\n .callout.teal { background:#f3fdf9; border-color:#cdeee0; border-left:3px dotted var(--teal); }\n .callout.teal .callout-label { color:var(--teal); } .callout.teal .callout-label::before{ content:'\\22A1'; background:var(--teal); }\n .callout.amber { background:#fffbf3; border-color:#f3e3c3; border-left-color:var(--amber); }\n .callout.amber .callout-label { color:#9a6a00; } .callout.amber .callout-label::before{ content:'\\0021'; background:var(--amber); }\n .callout.purple { background:#faf6ff; border-color:#e7dcf6; border-left-color:var(--purple); }\n .callout.purple .callout-label { color:var(--purple); } .callout.purple .callout-label::before{ content:'\\2756'; background:var(--purple); }\n .callout.slate { background:#f6f8fb; border:1px solid #dde5ee; border-left-width:1px; }\n .callout.slate .callout-label { color:var(--slate); } .callout.slate .callout-label::before{ content:'\\25B8'; background:var(--slate); }\n\n .callout.gold { background:#fffdf3; border:1.5px solid #e7cf8e; border-left-width:1.5px; border-radius:9px; }\n .callout.gold .callout-label { color:#8a6a00; } .callout.gold .callout-label::before{ content:'\\00A7'; background:var(--gold); color:#3a2c00; }\n .callout.gold::before, .callout.gold::after { content:''; position:absolute; width:9px; height:9px; border:1.5px solid var(--gold); }\n .callout.gold::before { top:6px; left:6px; border-right:0; border-bottom:0; }\n .callout.gold::after { bottom:6px; right:6px; border-left:0; border-top:0; }\n\n .callout.red { background:#fff7f6; border-color:#f3cfca; border-left:4px solid var(--red); overflow:hidden; }\n .callout.red .callout-label { color:var(--red); margin:-15px -18px 12px; padding:11px 18px;\n background:linear-gradient(90deg,#fdecea,#fff7f6); border-bottom:1px solid #f3cfca; }\n .callout.red .callout-label::before{ content:'\\2691'; background:var(--red); }\n\n .callout.purple { overflow:hidden; }\n .callout.purple::after { content:''; position:absolute; top:0; right:0; border-width:0 16px 16px 0;\n border-style:solid; border-color:#fff #fff var(--purple) var(--purple); opacity:.55; }\n\n @media (prefers-reduced-motion: reduce){ .callout{ transition:none; } }\n\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; }\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; }\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; }\n .def-card .def-text { font-size:15px; color:#1f3a55; line-height:1.78; position:relative; z-index:1; text-align:justify; }\n\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; }\n .compare-intro { margin:20px 0 -2px; font-size:14.5px; color:#42526b; }\n .table-wrap { overflow-x:auto; -webkit-overflow-scrolling:touch; margin:16px 0 24px; }\n .table-wrap > .compare-table { margin:0; }\n .compare-table thead tr { background:var(--navy); color:#fff; }\n .compare-table th { padding:12px 16px; text-align:left; font-size:12.5px; font-weight:700; }\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; text-align:justify; text-justify:inter-word; hyphens:none; }\n .compare-table tr:nth-child(even) td { background:#f8fbfd; }\n .compare-table td.label-cell { font-weight:700; color:var(--navy); background:#eef4fa !important; text-align:left; }\n .compare-table td.code-cell { font-family:'JetBrains Mono',monospace; font-weight:700; color:var(--blue); background:#eef4fa !important; text-align:center; }\n\n .info-row { display:grid; grid-template-columns:repeat(auto-fit,minmax(150px,1fr)); gap:14px; margin:18px 0 26px; }\n .info-card { background:#fff; border:1.5px solid var(--border); border-top:4px solid var(--blue); border-radius:12px; padding:18px 16px; }\n .info-card.t-teal { border-top-color:var(--teal); }\n .info-card.t-amber { border-top-color:var(--amber); }\n .info-card.t-gold { border-top-color:var(--gold); }\n .info-card.t-red { border-top-color:var(--red); }\n .info-card.t-purple { border-top-color:var(--purple); }\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; }\n .info-card .ic-cap { font-size:12.5px; color:#5a6b7d; line-height:1.5; }\n\n .parts-list { list-style:none; counter-reset:parts; margin:14px 0 22px; display:flex; flex-direction:column; gap:12px; }\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; }\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; }\n .parts-list.roman > li::before { content:counter(parts,lower-roman); font-size:12px; }\n .parts-list.decimal > li::before { content:counter(parts); font-size:13px; }\n .parts-list.teal > li::before{background:var(--teal);} .parts-list.amber > li::before{background:var(--amber);} .parts-list.blue > li::before{background:var(--blue);}\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);}\n .parts-list > li strong { color:var(--navy); }\n\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; }\n .highlight-box .hl-label { font-size:10px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--blue); margin-bottom:6px; }\n .highlight-box .hl-text { font-size:14.5px; color:#2c3e50; line-height:1.72; text-align:justify; }\n\n .flow { display:flex; flex-wrap:wrap; gap:0; margin:20px 0 28px; align-items:stretch; }\n .flow-step { flex:1 1 0; min-width:140px; background:#fff; border:1.5px solid var(--border); border-radius:12px; padding:14px 15px; position:relative; }\n .flow-step + .flow-step { margin-left:28px; }\n .flow-step + .flow-step::before { content:'\\2192'; position:absolute; left:-23px; top:50%; transform:translateY(-50%); color:var(--sky); font-size:19px; font-weight:700; }\n .flow-step .fs-num { font-family:'JetBrains Mono',monospace; font-size:10.5px; font-weight:700; color:var(--blue); letter-spacing:0.08em; margin-bottom:6px; }\n .flow-step .fs-title { font-size:13px; font-weight:700; color:var(--navy); margin-bottom:4px; line-height:1.3; }\n .flow-step .fs-text { font-size:12px; color:#5a6b7d; line-height:1.55; }\n .flow.teal .flow-step+.flow-step::before{color:var(--teal);} .flow.teal .fs-num{color:var(--teal);}\n .flow.amber .flow-step+.flow-step::before{color:var(--amber);} .flow.amber .fs-num{color:#9a6a00;}\n .flow.purple .flow-step+.flow-step::before{color:var(--purple);} .flow.purple .fs-num{color:var(--purple);}\n @media (max-width:720px){ .flow{flex-direction:column;} .flow-step+.flow-step{margin-left:0;margin-top:28px;} .flow-step+.flow-step::before{content:'\\2193';left:50%;top:-24px;transform:translateX(-50%);} }\n\n .cat-grid { display:grid; grid-template-columns:repeat(2,1fr); gap:14px; margin:20px 0 28px; }\n .cat-grid.three{grid-template-columns:repeat(3,1fr);} .cat-grid.four{grid-template-columns:repeat(4,1fr);}\n .cat-card { border-radius:10px; padding:18px 18px; border:1.5px solid var(--border); }\n .cat-card.a{border-color:#9dc3ec;background:#f0f7ff;} .cat-card.b{border-color:#7fd3c5;background:#f0fdf8;}\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;}\n .cat-label { font-size:9.5px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:6px; }\n .cat-title { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:8px; }\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);}\n .cat-card p { font-size:13px; color:#2c3e50; line-height:1.7; text-align:justify; }\n .cat-badge { display:inline-block; font-size:22px; font-weight:900; margin-bottom:6px; font-family:'JetBrains Mono',monospace; line-height:1; }\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);}\n\n .chapter-pane { display:none; animation:fadeIn 0.3s ease; }\n .chapter-pane.active { display:block; }\n @keyframes fadeIn { from{opacity:0;transform:translateY(4px);} to{opacity:1;transform:translateY(0);} }\n\n .sidebar { position:sticky; top:24px; max-height:calc(100vh - 48px); }\n .toc-card { background:#fff; border:1px solid var(--border); border-radius:12px; padding:16px 12px; max-height:calc(100vh - 48px); overflow-y:auto; }\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; }\n .toc-chapter { margin-bottom:8px; }\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; }\n .toc-chapter-header::-webkit-details-marker { display:none; }\n .toc-chapter-header:hover { background:#163457; }\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; }\n .toc-ch-title { flex:1; font-size:13.5px; font-weight:700; line-height:1.25; color:#fff; }\n .toc-ch-chev { font-size:10px; color:rgba(255,255,255,0.8); transition:transform 0.22s ease; flex-shrink:0; }\n .toc-chapter[open] > .toc-chapter-header { background:#163457; }\n .toc-chapter[open] > .toc-chapter-header .toc-ch-chev { transform:rotate(90deg); }\n .toc-sub-wrap { position:relative; margin:6px 0 6px 18px; padding-left:14px; }\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); }\n .toc-sub-list { list-style:none; }\n .toc-sub-list li { display:flex; align-items:flex-start; gap:6px; padding:5px 4px 5px 0; }\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; }\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; }\n .toc-sub-list a:hover { color:var(--blue); }\n .toc-sub-list a.active { color:var(--blue); font-weight:700; }\n .toc-sub-list .toc-app .toc-sub-num, .toc-sub-list .toc-app a { color:var(--purple); }\n .toc-sub-list .toc-app a:hover, .toc-sub-list .toc-app a.active { color:#5a2a8a; font-weight:700; }\n .toc-upcoming { margin-top:10px; padding:10px 12px; border:1px dashed #cdd8e4; border-radius:10px; }\n .toc-upcoming .tu-label { font-size:9px; font-weight:700; text-transform:uppercase; letter-spacing:0.12em; color:var(--muted); margin-bottom:7px; }\n .toc-upcoming ul { list-style:none; display:flex; flex-direction:column; gap:5px; }\n .toc-upcoming li { font-size:11.5px; color:#9aa9b8; display:flex; gap:7px; align-items:baseline; line-height:1.35; }\n .toc-upcoming li .tu-num { font-family:'JetBrains Mono',monospace; font-weight:700; color:#b7c2cf; min-width:34px; }\n\n .recap { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); border-radius:14px; padding:28px 30px; margin:44px 0 0; color:#fff; }\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; }\n .recap table { width:100%; border-collapse:collapse; }\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; }\n .recap td { text-align:justify; text-justify:inter-word; hyphens:none; }\n .recap th, .recap td:first-child { text-align:left; }\n .recap th { font-size:11px; text-transform:uppercase; letter-spacing:0.1em; opacity:0.7; font-weight:700; }\n .recap td:first-child { font-weight:700; color:#ffd700; width:38%; }\n .recap td strong { color:#ffd95a; font-weight:700; }\n .recap td:first-child strong { color:inherit; }\n\n .ix { border:1.5px solid var(--border); border-radius:14px; margin:30px 0 28px; overflow:hidden; background:#fff; }\n .ix-head { background:linear-gradient(135deg,#10243f 0%,#193b63 100%); color:#fff; padding:14px 20px; display:flex; align-items:center; gap:12px; }\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; }\n .ix-head h4 { font-size:14px; font-weight:700; color:#fff; margin:0; }\n .ix-body { padding:20px; }\n .ix-help { font-size:12.5px; color:var(--muted); margin:0 0 14px; }\n .quiz-q { font-size:14.5px; font-weight:700; color:var(--navy); margin-bottom:14px; display:flex; gap:8px; align-items:baseline; }\n .quiz-q .q-tag { font-family:'JetBrains Mono',monospace; font-size:24px; font-weight:700; color:var(--blue); flex-shrink:0; }\n .quiz-opts { display:grid; grid-template-columns:repeat(2,1fr); gap:10px; margin-bottom:6px; }\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; }\n .quiz-opt:hover { border-color:var(--blue); 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} }\n\n \/* \u2500\u2500\u2500\u2500\u2500 Tag legend chips \u2500\u2500\u2500\u2500\u2500 *\/\n .chip-row { display:flex; flex-wrap:wrap; gap:8px; margin:8px 0 20px; }\n .chip { font-size:11.5px; font-weight:600; padding:6px 12px; border-radius:20px; background:#eef4fa; color:var(--navy); border:1px solid #d6e3f0; }\n .chip b { font-family:'JetBrains Mono',monospace; color:var(--blue); }\n\n @media (max-width:880px) {\n .layout { grid-template-columns:1fr; gap:32px; padding:28px 24px 64px; }\n .sidebar { position:static; }\n .cat-grid, .cat-grid.three, .cat-grid.four { grid-template-columns:1fr 1fr; }\n .hero { padding:48px 24px 44px; }\n .breadcrumb-bar, .scope-banner { padding:10px 24px; }\n .hero-grid { grid-template-columns:1fr; gap:24px; }\n .hero-illustration { width:250px; margin:0 auto; }\n }\n @media (max-width:640px) {\n .compare-table.wide { min-width:560px; }\n .table-wrap { border:1px solid var(--border); border-radius:10px;\n background:linear-gradient(90deg,#fff 30%,rgba(255,255,255,0)),\n linear-gradient(90deg,rgba(255,255,255,0),#fff 70%) 100% 0,\n radial-gradient(farthest-side at 0 50%,rgba(16,36,63,.14),transparent),\n radial-gradient(farthest-side at 100% 50%,rgba(16,36,63,.14),transparent) 100% 0;\n background-repeat:no-repeat; 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This revised <strong>Second Edition (2024)<\/strong> incorporates clarifications up to June 2024, the MAPS 2020 review and refreshed Model Tender Documents. These notes open with the <strong>Principles & Policies<\/strong> and the <strong>Need-Assessment \/ Specification \/ Planning<\/strong> stage.<\/p>\n <div class=\"hero-pills\">\n <span class=\"hero-pill\">GFR 2017 \u00b7 Rules 144\u2013173<\/span>\n <span class=\"hero-pill\">Five R's of Procurement<\/span>\n <span class=\"hero-pill\">Make-in-India \u00b7 MSE \u00b7 MII<\/span>\n <span class=\"hero-pill\">GeM \u00b7 CPPP<\/span>\n <\/div>\n <\/div>\n <div class=\"hero-illustration\" aria-hidden=\"true\">\n <svg viewBox=\"0 0 340 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"A goods crate with a quality seal beside a tender document and a gavel\">\n <ellipse cx=\"170\" cy=\"262\" rx=\"132\" ry=\"12\" fill=\"rgba(0,0,0,0.18)\"\/>\n \n <g transform=\"rotate(-7 96 120)\">\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"120\" rx=\"6\" fill=\"#f4f8fd\" stroke=\"#0a2238\" stroke-width=\"2\"\/>\n <rect x=\"58\" y=\"58\" width=\"92\" height=\"22\" rx=\"6\" fill=\"#1c5da6\"\/>\n <g stroke=\"#9db8d4\" stroke-width=\"3\" stroke-linecap=\"round\">\n <line x1=\"70\" y1=\"96\" x2=\"138\" y2=\"96\"\/>\n <line x1=\"70\" y1=\"110\" x2=\"138\" y2=\"110\"\/>\n <line x1=\"70\" y1=\"124\" x2=\"120\" y2=\"124\"\/>\n <line x1=\"70\" y1=\"138\" x2=\"138\" y2=\"138\"\/>\n <line x1=\"70\" y1=\"152\" x2=\"112\" y2=\"152\"\/>\n <\/g>\n <\/g>\n \n <rect x=\"118\" y=\"146\" width=\"116\" height=\"86\" rx=\"8\" fill=\"#c97c10\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M118 174 H234\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <path d=\"M176 146 V232\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n \n <rect x=\"160\" y=\"146\" width=\"32\" height=\"86\" fill=\"#e0a040\" opacity=\"0.55\"\/>\n \n <circle cx=\"176\" cy=\"138\" r=\"22\" fill=\"#0e8f7a\" stroke=\"#0a6354\" stroke-width=\"3\"\/>\n <path d=\"M165 138 l7 8 14 -17\" fill=\"none\" stroke=\"#fff\" stroke-width=\"4\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n \n <g transform=\"rotate(18 246 168)\">\n <rect x=\"222\" y=\"150\" width=\"48\" height=\"34\" rx=\"6\" fill=\"#fffaf0\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <circle cx=\"228\" cy=\"167\" r=\"4\" fill=\"none\" stroke=\"#8a5a10\" stroke-width=\"3\"\/>\n <text x=\"250\" y=\"176\" font-family=\"Georgia,serif\" font-size=\"20\" font-weight=\"700\" text-anchor=\"middle\" fill=\"#10243f\">₹<\/text>\n <\/g>\n \n <g transform=\"rotate(38 256 96)\">\n <rect x=\"246\" y=\"58\" width=\"14\" height=\"48\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <rect x=\"236\" y=\"44\" width=\"34\" height=\"22\" rx=\"5\" fill=\"#1c5da6\" stroke=\"#13456f\" stroke-width=\"2\"\/>\n <\/g>\n <rect x=\"232\" y=\"118\" width=\"46\" height=\"9\" rx=\"3\" fill=\"#41617f\" stroke=\"#2a4156\" stroke-width=\"2\"\/>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\n\n<div class=\"scope-banner\">\n <div class=\"scope-inner\">\n <span>▶<\/span>\n <span><strong>Complete manual \u2014 all ten chapters.<\/strong> Principles & Policies · Need Assessment & Planning · Supplier Relationship Management · Modes & Tendering · Bid Invitation · Securities, Prices & Payments · Bid Evaluation & Award · Procurements with Unique Features · Contract Management · Disposal of Scrap Goods.<\/span>\n <\/div>\n<\/div>\n\n\n<div class=\"breadcrumb-bar\">\n <div class=\"breadcrumb-inner\">\n <a href=\"#\">Home<\/a>\n <span class=\"sep\">›<\/span>\n <a href=\"#\">Notes<\/a>\n <span class=\"sep\">›<\/span>\n <span>Manual for Procurement of Goods (2nd Edition, 2024)<\/span>\n <\/div>\n<\/div>\n\n<div class=\"layout\">\n <aside class=\"sidebar\">\n <div class=\"toc-card\">\n <div class=\"toc-card-title\">Table of Contents<\/div>\n\n <details class=\"toc-chapter\" data-chapter=\"1\" open>\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 1<\/span>\n <span class=\"toc-ch-title\">Introduction \u2014 Principles & Policies<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">1.1<\/span><a href=\"#c1-rules\">Rules, Regulations & this Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.3<\/span><a href=\"#c1-applic\">Applicability of the Manual<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.4<\/span><a href=\"#c1-categ\">Categorisation of Procurements<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.5<\/span><a href=\"#c1-auth\">Competent Authority & Financial Advisers<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.6<\/span><a href=\"#c1-fiver\">The Five R's of Procurement<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.7-9<\/span><a href=\"#c1-vfm\">Value for Money, Principles & Propriety<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.10<\/span><a href=\"#c1-infra\">Procurement Infrastructure at the Centre<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.11<\/span><a href=\"#c1-pref\">Reserved Items & Preference Policies<\/a><\/li>\n <li><span class=\"toc-sub-num\">1.13-14<\/span><a href=\"#c1-cycle\">The Procurement Cycle & Nomenclature<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c1-recap\">Chapter 1 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"2\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 2<\/span>\n <span class=\"toc-ch-title\">Need Assessment, Specs & Planning<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">2.1<\/span><a href=\"#c2-need\">Need Assessment<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.1f<\/span><a href=\"#c2-cost\">Estimation of Cost<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2<\/span><a href=\"#c2-spec\">Formulation of Technical Specifications<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.2.8<\/span><a href=\"#c2-green\">Green Procurement & Energy Labels<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.3<\/span><a href=\"#c2-sanction\">Sanctions, Approvals & Indents<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.4<\/span><a href=\"#c2-risk1\">Need \/ Specification Risks<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5<\/span><a href=\"#c2-plan\">Procurement Planning<\/a><\/li>\n <li><span class=\"toc-sub-num\">2.5.1<\/span><a href=\"#c2-cartel\">Cartel Mitigation & Large Procurement<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c2-recap\">Chapter 2 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"3\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 3<\/span>\n <span class=\"toc-ch-title\">Supplier Relationship Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">3.1<\/span><a href=\"#c3-srm\">What SRM Covers<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.2<\/span><a href=\"#c3-cipp\">Code of Integrity (CIPP)<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.3<\/span><a href=\"#c3-pact\">Integrity Pact<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.4<\/span><a href=\"#c3-grievance\">Grievances & Redressal<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.5<\/span><a href=\"#c3-conduct\">Conduct of Public Servants<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.6<\/span><a href=\"#c3-register\">Registration & Pre-qualification<\/a><\/li>\n <li><span class=\"toc-sub-num\">3.7<\/span><a href=\"#c3-debar\">Debarment of Suppliers<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c3-recap\">Chapter 3 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"4\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 4<\/span>\n <span class=\"toc-ch-title\">Modes of Procurement & Tendering<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">4.1<\/span><a href=\"#c4-modes\">Five Families of Mode<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.2-5<\/span><a href=\"#c4-advertised\">Advertised \u2014 OTE, GTE, RC, eRA<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.6-9<\/span><a href=\"#c4-restricted\">Pre-qualification, LTE & SLTE<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.10-13<\/span><a href=\"#c4-nomination\">Nomination & Shopping Modes<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.14-16<\/span><a href=\"#c4-tendering\">Tendering Systems & EoI<\/a><\/li>\n <li><span class=\"toc-sub-num\">4.17<\/span><a href=\"#c4-channels\">Channels & GeM Purchase<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c4-recap\">Chapter 4 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <details class=\"toc-chapter\" data-chapter=\"5\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 5<\/span>\n <span class=\"toc-ch-title\">Bid Invitation Process<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">5.1<\/span><a href=\"#c5-tdoc\">Tender Document & MTDs<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.1.3<\/span><a href=\"#c5-filters\">Eligibility, Qualification & Evaluation<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.2<\/span><a href=\"#c5-publish\">Publication & Pre-bid<\/a><\/li>\n <li><span class=\"toc-sub-num\">5.3<\/span><a href=\"#c5-open\">Opening of Bids<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c5-recap\">Chapter 5 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"6\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 6<\/span>\n <span class=\"toc-ch-title\">Securities, Prices & Payments<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">6.1<\/span><a href=\"#c6-sec\">Forms of Security<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.1.3<\/span><a href=\"#c6-isb\">Insurance Surety Bond & e-BG<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.5<\/span><a href=\"#c6-advance\">Advance Payments<\/a><\/li>\n <li><span class=\"toc-sub-num\">6.6<\/span><a href=\"#c6-prices\">Firm vs Variable Price<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c6-recap\">Chapter 6 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"7\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 7<\/span>\n <span class=\"toc-ch-title\">Bid Evaluation & Award<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">7.1<\/span><a href=\"#c7-eval\">Evaluation & Tender Committee<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3<\/span><a href=\"#c7-prelim\">Preliminary Examination<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.3.2<\/span><a href=\"#c7-discrep\">Discrepancies & Deviations<\/a><\/li>\n <li><span class=\"toc-sub-num\">7.6<\/span><a href=\"#c7-award\">Award, Reasonableness & Negotiation<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c7-recap\">Chapter 7 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"8\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 8<\/span>\n <span class=\"toc-ch-title\">Procurements with Unique Features<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">8.1<\/span><a href=\"#c8-emerg\">Emergencies & Disaster Management<\/a><\/li>\n <li><span class=\"toc-sub-num\">8.3<\/span><a href=\"#c8-capital\">Capital Goods, AMC, NPV & Turnkey<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c8-recap\">Chapter 8 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"9\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 9<\/span>\n <span class=\"toc-ch-title\">Contract Management<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">9.1<\/span><a href=\"#c9-cm\">Lifecycle & Purpose<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.2<\/span><a href=\"#c9-qty\">Scope & Quantity Control<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.3<\/span><a href=\"#c9-time\">Time Control & LD<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.4<\/span><a href=\"#c9-quality\">Quality & Inspection<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.8<\/span><a href=\"#c9-breach\">Breach & Termination<\/a><\/li>\n <li><span class=\"toc-sub-num\">9.9<\/span><a href=\"#c9-dispute\">Dispute Resolution & Closure<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c9-recap\">Chapter 9 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n <details class=\"toc-chapter\" data-chapter=\"10\">\n <summary class=\"toc-chapter-header\">\n <span class=\"toc-ch-badge\">CH 10<\/span>\n <span class=\"toc-ch-title\">Disposal of Scrap Goods<\/span>\n <span class=\"toc-ch-chev\">▶<\/span>\n <\/summary>\n <div class=\"toc-sub-wrap\"><ul class=\"toc-sub-list\">\n <li><span class=\"toc-sub-num\">10.1<\/span><a href=\"#c10-scrap\">What Counts as Scrap<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.2<\/span><a href=\"#c10-survey\">Classification & Survey<\/a><\/li>\n <li><span class=\"toc-sub-num\">10.5<\/span><a href=\"#c10-process\">The Disposal Workflow<\/a><\/li>\n <li class=\"toc-app\"><span class=\"toc-sub-num\">★<\/span><a href=\"#c10-recap\">Chapter 10 \u2014 Quick Recap<\/a><\/li>\n <\/ul><\/div>\n <\/details>\n\n\n <\/div>\n <\/aside>\n\n <main class=\"article\">\n \n <section class=\"chapter-pane active\" id=\"pane-ch1\" data-chapter=\"1\">\n\n <div class=\"chapter-heading-block\" id=\"c1-rules\">\n <span class=\"chapter-badge\">CH 1 \u00b7 PRINCIPLES & POLICIES<\/span>\n <h2>Introduction \u2014 Principles and Policies<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What this Manual is (1.1)<\/div>\n <div class=\"def-text\">\n Ministries, Departments, attached\/subordinate offices, local bodies, PSEs and other Government (including autonomous) bodies \u2014 collectively <strong>\"Procuring Entities\"<\/strong> \u2014 spend a large part of their budget buying goods, works and services. This Manual is not a complete compendium of all rules; it is a <strong>portal<\/strong> into the area, drawing attention to the basic norms of public procurement of goods. Common-use goods and services available on GeM must be procured through it (<strong>Rule 149, GFR 2017<\/strong>); for what is not on GeM, Ministries have full powers to make their own arrangements under the DFPR.\n <\/div>\n <\/div>\n\n <p>Procurement is governed not by a single law but by a layered hierarchy \u2014 the <strong>\"Procurement Guidelines\"<\/strong> of Annexure 1. There is <strong>no exclusive procurement statute<\/strong> in the Central Government; the rules live in the GFR and orders beneath the Constitution.<\/p>\n\n <p>Public procurement rests on a five-level hierarchy of authority, from the highest source downward:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Constitution<\/strong> \u2014 Article 299 (contracts made in the President's name), with Articles 14 and 19(1)(g) underpinning fairness and free trade.<\/li>\n <li><strong>Mercantile laws<\/strong> \u2014 the Indian Contract Act 1872 and the Sale of Goods Act 1930.<\/li>\n <li><strong>Rules & Regulations<\/strong> \u2014 GFR 2017 (Chapters 6\u20139), the DFPR and standing Government orders.<\/li>\n <li><strong>Manuals of Procurement<\/strong> \u2014 Goods, Works, and Consultancy \/ Non-consultancy Services.<\/li>\n <li><strong>Procurement & Model Tender Documents<\/strong> \u2014 the operational documents used for each case.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The hierarchy of procurement authority (1.1)<\/div>\n <svg viewBox=\"0 0 680 350\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pyramid of procurement authority from the Constitution down to procurement documents\">\n<polygon points=\"340,16 426,80 254,80\" fill=\"#10243f\"\/>\n<text x=\"340\" y=\"64\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Constitution<\/text>\n<polygon points=\"250,86 430,86 464,142 216,142\" fill=\"#163e6b\"\/>\n<text x=\"340\" y=\"119\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Mercantile Laws<\/text>\n<polygon points=\"212,148 468,148 506,206 174,206\" fill=\"#1c5da6\"\/>\n<text x=\"340\" y=\"182\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Rules & Regulations<\/text>\n<polygon points=\"170,212 510,212 550,270 130,270\" fill=\"#2d8ecf\"\/>\n<text x=\"340\" y=\"246\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Manuals of Procurement<\/text>\n<polygon points=\"126,276 554,276 594,332 86,332\" fill=\"#0e8f7a\"\/>\n<text x=\"340\" y=\"309\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Tender Documents<\/text>\n<\/svg>\n <div class=\"fig-cap\">At the apex, <strong>Article 299<\/strong> requires Government contracts to be in writing by authorised officers; each lower tier adds operational detail. Restrictions under <strong>Rule 144(xi)<\/strong> (land-border bidders) and orders like Make-in-India sit in the Rules tier.<\/div>\n <\/div>\n\n <p>The <strong>Procurement Policy Division (PPD), Department of Expenditure<\/strong> is the nodal authority for revising, interpreting and clarifying this Manual (1.2).<\/p>\n\n <div class=\"section-heading-block\" id=\"c1-applic\">\n <span class=\"section-badge teal\">\u00a7 1.3<\/span>\n <h3>Applicability \u2014 who and what the Manual covers<\/h3>\n <\/div>\n\n <p>The Manual applies to the procurement of all <strong>\"Goods\"<\/strong> as defined in the Procurement Glossary. What distinguishes goods from works and services is the ability to <strong>precisely describe the technical specification and scope<\/strong>. The other manuals are generically based on this one, which therefore applies <em>mutatis mutandis<\/em> wherever they are silent.<\/p>\n\n <ol class=\"parts-list decimal teal\">\n <li><strong>Core Government (Rule 1, GFR).<\/strong> All Central Government Ministries\/Departments and attached\/subordinate bodies \u2014 and autonomous bodies, except where their Government-approved bye-laws provide separate guidelines.<\/li>\n <li><strong>CPSEs & substantially-financed bodies.<\/strong> CPSEs, PSBs, PSICs, public financial institutions, constitutional\/statutory bodies and public academic institutions \u2014 except deviations approved by their competent authority (e.g. Board of Directors).<\/li>\n <li><strong>Indian Missions & CPSE units abroad.<\/strong> May adopt GFR financial thresholds in the host currency using the latest <strong>INR\u2013PPP conversion rate<\/strong> published by the IMF (reviewed annually).<\/li>\n <li><strong>Outsourced procurement.<\/strong> Still applies when the entity outsources, bundles, or uses a procurement support agency\/agent.<\/li>\n <\/ol>\n\n <p class=\"compare-intro\">Two situations sit <strong>outside<\/strong> the guidelines \u2014 worth separating from the coverage rules above.<\/p>\n <div class=\"cat-grid\">\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 1<\/div><div class=\"cat-title\">Own subsidiaries \/ JVs<\/div><p>Procurement for own use from a subsidiary or JV in which the entity holds a <strong>controlling share<\/strong>.<\/p><\/div>\n <div class=\"cat-card d\"><div class=\"cat-label\">Not covered \u00b7 2<\/div><div class=\"cat-title\">IPF-funded projects<\/div><p>World Bank <strong>Investment Project Financing (IPF)<\/strong> and similar IFA instruments follow the IFA's own procedures (<strong>Rule 264, GFR 2017<\/strong>). PforR \/ Results-based lending apply the guidelines as agreed in the legal agreements.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-categ\">\n <span class=\"section-badge amber\">\u00a7 1.4<\/span>\n <h3>Categorisation of procurements<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Tangible \u00b7 own premises<\/div><div class=\"cat-title\">Goods<\/div><p>Made on the <strong>supplier's premises<\/strong> (other than installation). May include incidental works\/services \u2014 transport, insurance, installation, training.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Tangible \u00b7 buyer's site<\/div><div class=\"cat-title\">Works<\/div><p>Executed on the <strong>procuring entity's premises<\/strong> (other than pre-fabricated parts). May include incidental goods, and vice-versa.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Intangible output<\/div><div class=\"cat-title\">Services<\/div><p>Distinguished by <strong>intangible output<\/strong>. Consultancy = predominant intellectual input, one-off; Non-consultancy = routine, standardised, measurable.<\/p><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">In case of doubt \u2014 how to classify (1.4)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision tree for classifying a procurement\">\n<defs><marker id=\"t1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"250\" y=\"24\" width=\"160\" height=\"46\" rx=\"10\" fill=\"#10243f\"\/>\n<text x=\"330.0\" y=\"52.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">What is procured?<\/text>\n<line x1=\"330\" y1=\"72\" x2=\"135\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"330\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<line x1=\"330\" y1=\"72\" x2=\"525\" y2=\"120\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#t1)\"\/>\n<rect x=\"60\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"135.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Goods<\/text>\n<rect x=\"255\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Works<\/text>\n<rect x=\"450\" y=\"124\" width=\"150\" height=\"46\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"525.0\" y=\"152.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">Services<\/text>\n<rect x=\"180\" y=\"216\" width=\"300\" height=\"50\" rx=\"10\" fill=\"#fff\" stroke=\"#c97c10\" stroke-width=\"1.8\"\/>\n<text x=\"330\" y=\"240\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">In doubt?<\/text>\n<text x=\"330\" y=\"258\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" fill=\"#5a6b7d\">Default to the Goods Manual<\/text>\n<\/svg>\n <div class=\"fig-cap\">For <strong>composite contracts<\/strong> mixing elements, the <strong>primary intention<\/strong> decides the category \u2014 irrespective of the relative values. IT projects are usually handled as consultancy services.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-auth\">\n <span class=\"section-badge purple\">\u00a7 1.5<\/span>\n <h3>Competent authority & consultation with Financial Advisers<\/h3>\n <\/div>\n\n <p>The first step is the <strong>decision to procure<\/strong>, with the exact or approximate expenditure. A competent authority accords <strong>administrative sanction<\/strong> under the DFPR, following the Procurement Guidelines (<strong>Rule 145, GFR 2017<\/strong>). Each entity may issue a <strong>Schedule of Procurement Powers (SoPP)<\/strong> adding detail to the DFPR delegations. Being a financial decision, it generally requires consultation of the <strong>Financial Adviser<\/strong> (Para 19, Charter for FA, 2023):<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:41%\"><col style=\"width:41%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Normal Procedure<\/th><th>Special Procedure<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Default?<\/td><td><strong>Yes<\/strong> \u2014 applies unless the Department's Secretary approves a special procedure with DoE concurrence.<\/td><td>Adopted only with the <strong>prior concurrence of Secretary (Expenditure)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">FA\/IFD consultation<\/td><td>Concurrence of the FA\/IFD on <strong>all procurement matters<\/strong>, except where re-delegation is within permissible limits.<\/td><td>A <strong>tailored level<\/strong> of involvement, defined by financial thresholds, stages or types of procurement.<\/td><\/tr>\n <tr><td class=\"label-cell\">Scope<\/td><td colspan=\"2\">Applies only to Ministries\/Departments under the FA Charter; <strong>CPSEs may devise their own systems<\/strong>. Payments under approved contracts need no IFD consultation, except where in relaxation\/variation of approved conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-fiver\">\n <span class=\"section-badge blue\">\u00a7 1.6<\/span>\n <h3>Basic aims \u2014 the Five R's of Procurement<\/h3>\n <\/div>\n\n <p>Every procurement seeks the <strong>optimal balance<\/strong> \u2014 \"right\" means optimal, not cheapest or most \u2014 across five parameters.<\/p>\n\n <p>The \"Five R's\" are the objectives every procurement balances: <strong>Right Quality<\/strong>, <strong>Right Quantity<\/strong>, <strong>Right Price<\/strong>, <strong>Right Time & Place<\/strong>, and the <strong>Right Source<\/strong> \u2014 none pursued so far as to defeat the others.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The Five R's around the optimal balance (1.6)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Pentagon of the five R's of procurement\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"205\" x2=\"300.0\" y2=\"77.0\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"421.7\" y2=\"165.4\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"375.2\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"224.8\" y2=\"308.6\"\/>\n<line x1=\"300\" y1=\"205\" x2=\"178.3\" y2=\"165.4\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"205\" r=\"56\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">FIVE<\/text>\n<text x=\"300\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#ffd95a\">R’s<\/text>\n<circle cx=\"300.0\" cy=\"77.0\" r=\"46\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"300.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#1c5da6\">R1<\/text>\n<text x=\"300.0\" y=\"91.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quality<\/text>\n<circle cx=\"421.7\" cy=\"165.4\" r=\"46\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"421.7\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#0e8f7a\">R2<\/text>\n<text x=\"421.7\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Quantity<\/text>\n<circle cx=\"375.2\" cy=\"308.6\" r=\"46\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"375.2\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c97c10\">R3<\/text>\n<text x=\"375.2\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Price<\/text>\n<circle cx=\"224.8\" cy=\"308.6\" r=\"46\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"224.8\" y=\"303.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#7e3eb5\">R4<\/text>\n<text x=\"224.8\" y=\"322.6\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Time\/Place<\/text>\n<circle cx=\"178.3\" cy=\"165.4\" r=\"46\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"178.3\" y=\"160.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"16\" font-weight=\"800\" fill=\"#c0392b\">R5<\/text>\n<text x=\"178.3\" y=\"179.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"700\" fill=\"#10243f\">Source<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Quality<\/strong> refines into utility\/value; <strong>Price<\/strong> into life-cycle cost (not the cheapest); <strong>Source<\/strong> must have the right financial capacity and technical capability shown by past performance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-vfm\">\n <span class=\"section-badge teal\">\u00a7 1.7–1.9<\/span>\n <h3>Value for Money, fundamental principles & financial propriety<\/h3>\n <\/div>\n\n <p>The concept of price is refined into <strong>Total Cost of Ownership (TCO) \/ Life Cycle Cost (LCC) \/ Whole-of-Life (WOL)<\/strong>, and quality into <strong>utility\/value<\/strong>. Together they give <strong>Value for Money (VfM)<\/strong> \u2014 the effective, efficient and economical use of resources, weighing costs, benefits, risks and non-price attributes. <strong>Price alone is not VfM.<\/strong><\/p>\n\n <p>The cost of ownership runs well beyond the purchase price. Over the whole life it comprises <strong>acquisition<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance<\/strong>, and <strong>disposal<\/strong> costs.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Whole-of-Life cost \u2014 beyond the purchase price (1.7)<\/div>\n <svg viewBox=\"0 0 660 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Stacked bar showing whole of life cost components\">\n<rect x=\"40\" y=\"70\" width=\"162\" height=\"70\" fill=\"#1c5da6\"\/>\n<text x=\"121\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Acquisition<\/text>\n<rect x=\"202\" y=\"70\" width=\"174\" height=\"70\" fill=\"#0e8f7a\"\/>\n<text x=\"289\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Operation<\/text>\n<rect x=\"376\" y=\"70\" width=\"174\" height=\"70\" fill=\"#c97c10\"\/>\n<text x=\"463\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Maintenance<\/text>\n<rect x=\"550\" y=\"70\" width=\"70\" height=\"70\" fill=\"#41617f\"\/>\n<text x=\"585\" y=\"110.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<text x=\"40\" y=\"50\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">Total Cost of Ownership over the whole life<\/text>\n<line x1=\"40\" y1=\"155\" x2=\"620\" y2=\"155\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<text x=\"40\" y=\"175\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#1c5da6\">purchase<\/text>\n<text x=\"620\" y=\"175\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#41617f\">end of life<\/text>\n<\/svg>\n <div class=\"fig-cap\">VfM is achieved through the <strong>widest competition<\/strong> \u2014 optimal description of need, value-engineered specifications, appropriate packaging\/slicing, and the right mode of procurement.<\/div>\n <\/div>\n\n <p class=\"compare-intro\"><strong>The five Fundamental Principles of Public Procurement (1.8)<\/strong> \u2014 GFR 2017, Rule 144 organises every authority's duties into five principles they must abide by and be accountable for.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table\">\n <colgroup><col style=\"width:26%\"><col style=\"width:74%\"><\/colgroup>\n <thead><tr><th>Principle<\/th><th>What it requires<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Transparency<\/td><td>Fairness, equality, competition and appeal rights through <strong>simultaneous, symmetric, unrestricted<\/strong> information; do only what was pre-declared in the published documents; publish on <strong>GeM & CPPP<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Professionalism<\/td><td>Economy, efficiency, effectiveness and integrity; avoid wasteful\/dilatory practices; comply with the <strong>Code of Integrity (CIPP)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Broader Obligations<\/td><td>Social\/economic goals \u2014 Make-in-India, MSE\/weaker-section reservation, Start-up support, and <strong>land-border restrictions under Rule 144(xi)<\/strong>.<\/td><\/tr>\n <tr><td class=\"label-cell\">Extended Legal Responsibilities<\/td><td>Beyond mercantile law \u2014 courts review public procurement as a function of the <strong>State<\/strong>; plus RTI Act, Prevention of Corruption Act, etc.<\/td><\/tr>\n <tr><td class=\"label-cell\">Public Accountability<\/td><td>Answerable to the Legislature, CVC, CAG, CBI; <strong>each transaction<\/strong> scrutinised in isolation; record considerations at every stage (Rule 144(viii)) and retain audit trails.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>Like any Government expenditure, procurement must meet the <strong>Standards (Canons) of Financial Propriety \u2014 Rule 21, GFR 2017<\/strong>:<\/p>\n <ol class=\"parts-list roman gold\">\n <li><strong>Ordinary prudence.<\/strong> Exercise the same vigilance over public money as a person of ordinary prudence would over their own.<\/li>\n <li><strong>Not more than the occasion demands.<\/strong> Expenditure should not prima facie exceed what the occasion requires.<\/li>\n <li><strong>No self-advantage.<\/strong> No authority sanctions expenditure to its own direct or indirect advantage.<\/li>\n <li><strong>No undue favour.<\/strong> No spending for a particular person\/section unless a claim is enforceable in law or it follows a recognised policy\/custom.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c1-infra\">\n <span class=\"section-badge slate\">\u00a7 1.10<\/span>\n <h3>Public procurement infrastructure at the Centre<\/h3>\n <\/div>\n\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">1.10.1<\/div><div class=\"cat-title\">PPD<\/div><p><strong>Procurement Policy Division<\/strong> (DoE) \u2014 drives uniformity through best practices, guidance, manuals and Model Tender Documents. It does <strong>not<\/strong> centralise procurement.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">1.10.2<\/div><div class=\"cat-title\">CPPP<\/div><p><strong>Central Public Procurement Portal<\/strong> (NIC) \u2014 single-point access; <strong>mandatory<\/strong> publication of tenders and contracts; e-publishing + e-procurement modules.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">1.10.3<\/div><div class=\"cat-title\">GeM<\/div><p><strong>Government e-Marketplace<\/strong> \u2014 the National Public Procurement Portal; <strong>paperless, contactless, cashless<\/strong>; mandatory for common-use goods (Rule 149).<\/p><\/div>\n <\/div>\n\n <p>Four statutory bodies provide external oversight of procurement; their reach and powers differ sharply.<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:18%\"><col style=\"width:26%\"><col style=\"width:56%\"><\/colgroup>\n <thead><tr><th>Body<\/th><th>Statute<\/th><th>Role & distinctive power<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">CAG<\/td><td>Articles 149\u2013151<\/td><td><strong>Supreme Audit Institution of India<\/strong>; compliance, financial, performance, thematic & IT audits; may inspect any audited office, examine transactions and decide the audit's extent & manner.<\/td><\/tr>\n <tr><td class=\"label-cell\">Lokpal \/ Lokayukta<\/td><td>Lokpal & Lokayukta Act, 2013 (amd. 2016)<\/td><td>Anti-corruption <strong>ombudsman<\/strong>; covers Union Ministers (incl. PM), MPs, public servants and FCRA NGOs above <strong>\u20b910 lakh\/yr<\/strong>; <strong>1 Chair + up to 8 members<\/strong> (4 judicial); may refer cases to the CBI.<\/td><\/tr>\n <tr><td class=\"label-cell\">CVC<\/td><td>CVC Act, 2003<\/td><td>Apex oversight; <strong>recommendatory, no punitive power<\/strong>; has <strong>superintendence over the CBI<\/strong> for PC-Act cases; two Chief Technical Examiners watch procurement; entities appoint a CVO in consultation with CVC.<\/td><\/tr>\n <tr><td class=\"label-cell\">CBI (DSPE)<\/td><td>Delhi Special Police Establishment Act, 1946<\/td><td>Only agency with <strong>police powers<\/strong> (arrest, seizure); prosecutes under the <strong>Prevention of Corruption Act, 1988<\/strong>; needs prior approval to probe officers of <strong>Joint Secretary & above<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c1-pref\">\n <span class=\"section-badge gold\">\u00a7 1.11<\/span>\n <h3>Reserved items & purchase \/ price preference policies<\/h3>\n <\/div>\n\n <p>The Central Government may, by notification, mandate procurement from a category of bidders or grant <strong>preference<\/strong> to promote local manufacture (<strong>Rule 153, GFR 2017<\/strong>). Any reservation\/preference must appear in the <strong>NIT<\/strong> and Instructions to Bidders. The numbers that drive these policies:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">20%<\/div><div class=\"st-cap\"><strong>Khadi \/ handloom<\/strong> textiles from KVIC & clusters (Rule 153(i))<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">358<\/div><div class=\"st-cap\">Items reserved for <strong>exclusive purchase from MSEs<\/strong> (incl. 8 handicrafts)<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">25%<\/div><div class=\"st-cap\">Min. annual <strong>MSE procurement<\/strong> target (Rule 153(ii))<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">4% \/ 3%<\/div><div class=\"st-cap\">Sub-targets \u2014 <strong>SC\/ST-owned<\/strong> & <strong>women-owned<\/strong> MSEs<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 + 15%<\/div><div class=\"st-cap\"><strong>MSE<\/strong> price band to match L1 (supply up to 25%)<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">50% \/ 20%<\/div><div class=\"st-cap\"><strong>MII local content<\/strong> \u2014 Class-I \/ Class-II minimum<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">L1 + 20%<\/div><div class=\"st-cap\"><strong>MII margin<\/strong> of purchase preference<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b95 L<\/div><div class=\"st-cap\">MII <strong>exemption<\/strong> below this value (no splitting)<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">\u20b910 cr<\/div><div class=\"st-cap\">Above this, local content needs a <strong>CA\/cost-auditor certificate<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">45 days<\/div><div class=\"st-cap\">MSMED Act payment limit; delay \u2192 <strong>3\u00d7 RBI bank-rate<\/strong> interest<\/div><\/div>\n <\/div>\n\n <p>The <strong>Make-in-India (MII), Order 2017<\/strong> preference logic depends on whether the lowest bidder (L1) is a Class-I local supplier:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Make-in-India purchase-preference flow \u2014 divisible procurement (1.11.3)<\/div>\n <svg viewBox=\"0 0 660 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision flow for Make in India purchase preference\">\n<defs><marker id=\"m1\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"m2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<polygon points=\"330,30 470,95 330,160 190,95\" fill=\"#fff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"330\" y=\"90\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Is L1 a<\/text>\n<text x=\"330\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#1c5da6\">Class-I supplier?<\/text>\n<line x1=\"470\" y1=\"95\" x2=\"558\" y2=\"95\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m2)\"\/>\n<text x=\"500\" y=\"86\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#0e8f7a\">YES<\/text>\n<rect x=\"560\" y=\"72\" width=\"92\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"606\" y=\"94\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">Award to<\/text>\n<text x=\"606\" y=\"109\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">L1<\/text>\n<line x1=\"330\" y1=\"160\" x2=\"330\" y2=\"203\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#m1)\"\/>\n<text x=\"342\" y=\"185\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">NO<\/text>\n<rect x=\"150\" y=\"208\" width=\"360\" height=\"58\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"232\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Offer Class-I lowest the chance to<\/text>\n<text x=\"330\" y=\"251\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">match L1 (purchase preference)<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Class-II suppliers get no preference.<\/strong> Local content is about value added in India \u2014 <em>not<\/em> the nationality of the firm. A false local-content claim attracts a penalty up to <strong>10% of contract value<\/strong> (contract is not terminated).<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Other preference policies in brief<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">LAND BORDER<\/span><span class=\"nl-text\"><strong>Rule 144(xi)<\/strong> \u2014 bidders from a country sharing a land border with India must be <strong>registered with the competent authority<\/strong>, on national-security grounds (credit-line \/ exempted cases apart).<\/span><\/li>\n <li><span class=\"nl-tag\">START-UP<\/span><span class=\"nl-text\">DPIIT-recognised <strong>Start-ups<\/strong> are exempt from bid security and may get relaxed prior turnover\/experience, subject to meeting quality & technical specifications.<\/span><\/li>\n <li><span class=\"nl-tag\">DMI&SP<\/span><span class=\"nl-text\"><strong>Domestically Manufactured Iron & Steel Products Policy, 2019<\/strong> \u2014 purchase preference for domestic iron & steel, overseen by a Standing Committee under the Ministry of Steel.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c1-cycle\">\n <span class=\"section-badge red\">\u00a7 1.13–1.14<\/span>\n <h3>The public procurement cycle & the nomenclature conundrum<\/h3>\n <\/div>\n\n <p>Procurement runs as a repeating five-stage cycle: <strong>Need<\/strong> \u2192 <strong>Bid Invitation<\/strong> \u2192 <strong>Evaluate & Award<\/strong> \u2192 <strong>Contract Management<\/strong> \u2192 <strong>Disposal<\/strong>. Each stage is the subject of a later chapter.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The five-stage procurement cycle (1.13)<\/div>\n <svg viewBox=\"0 0 600 410\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Circular five-stage procurement cycle\">\n<defs><marker id=\"arc\" markerUnits=\"userSpaceOnUse\" markerWidth=\"11\" markerHeight=\"11\" refX=\"9.5\" refY=\"5.5\" orient=\"auto\"><path d=\"M1 1.5 L9.5 5.5 L1 9.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<circle cx=\"300\" cy=\"205\" r=\"140\" fill=\"none\" stroke=\"#dde6ef\" stroke-width=\"2\" stroke-dasharray=\"3 7\"\/>\n<text x=\"300\" y=\"201\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Procurement<\/text>\n<text x=\"300\" y=\"225\" text-anchor=\"middle\" font-family=\"Crimson Pro,serif\" font-size=\"20\" font-weight=\"700\" fill=\"#10243f\">Cycle<\/text>\n<path d=\"M347.9 73.4 A 140 140 0 0 1 410.3 118.8\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M439.9 209.9 A 140 140 0 0 1 416.1 283.3\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M338.6 339.6 A 140 140 0 0 1 261.4 339.6\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M183.9 283.3 A 140 140 0 0 1 160.1 209.9\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<path d=\"M189.7 118.8 A 140 140 0 0 1 252.1 73.4\" fill=\"none\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#arc)\"\/>\n<circle cx=\"300.0\" cy=\"65.0\" r=\"40\" fill=\"#1c5da6\"\/>\n<text x=\"300.0\" y=\"56.5\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">1<\/text>\n<text x=\"300.0\" y=\"70.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Need<\/text>\n<circle cx=\"433.1\" cy=\"161.7\" r=\"40\" fill=\"#0e8f7a\"\/>\n<text x=\"433.1\" y=\"146.7\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">2<\/text>\n<text x=\"433.1\" y=\"160.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Bid<\/text>\n<text x=\"433.1\" y=\"173.7\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Invitation<\/text>\n<circle cx=\"382.3\" cy=\"318.3\" r=\"40\" fill=\"#c97c10\"\/>\n<text x=\"382.3\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">3<\/text>\n<text x=\"382.3\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Evaluate<\/text>\n<text x=\"382.3\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">& Award<\/text>\n<circle cx=\"217.7\" cy=\"318.3\" r=\"40\" fill=\"#7e3eb5\"\/>\n<text x=\"217.7\" y=\"303.3\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">4<\/text>\n<text x=\"217.7\" y=\"317.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Contract<\/text>\n<text x=\"217.7\" y=\"330.3\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Mgmt<\/text>\n<circle cx=\"166.9\" cy=\"161.7\" r=\"40\" fill=\"#c0392b\"\/>\n<text x=\"166.9\" y=\"153.2\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"800\" fill=\"#cfe0f2\">5<\/text>\n<text x=\"166.9\" y=\"167.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" font-weight=\"800\" fill=\"#fff\">Disposal<\/text>\n<\/svg>\n <div class=\"fig-cap\">Each stage is detailed in later chapters: Need (Ch 2), Bid Invitation (Ch 5), Evaluation & Award (Ch 7), Contract Management (Ch 9), Disposal (Ch 10).<\/div>\n <\/div>\n\n <div class=\"highlight-box\">\n <div class=\"hl-label\">Nomenclature (1.14)<\/div>\n <div class=\"hl-text\">Indian public procurement mixes American, European and British\/Indian terms. The Manual standardises <strong>\"Tender\"<\/strong> for the <em>tender document \/ process<\/em> published by the procuring entity, and <strong>\"Bid\"<\/strong> for what the <strong>bidder<\/strong> submits \u2014 so \"bidder\" replaces \"tenderer\", without disturbing terms already embedded in CPPP\/GeM (e.g. \"Pre-qualification Bidding\").<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz1\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 1 Quiz \u2014 principles, infrastructure & preferences<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 1. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage1\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c1-recap\">\n <div class=\"recap-title\">⚡ Chapter 1 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Apex statutory anchor<\/td><td><strong>Article 299<\/strong> \u2014 Government contracts in writing by authorised officers<\/td><\/tr>\n <tr><td>Core rules<\/td><td><strong>GFR 2017 (Ch 6\u20139)<\/strong>, DFPR; no exclusive procurement law<\/td><\/tr>\n <tr><td>GeM mandatory<\/td><td>Common-use goods\/services \u2014 <strong>Rule 149, GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Nodal authority<\/td><td><strong>PPD, Department of Expenditure<\/strong><\/td><\/tr>\n <tr><td>Five R's<\/td><td>Right Quality \u00b7 Quantity \u00b7 Price \u00b7 Time & Place \u00b7 Source<\/td><\/tr>\n <tr><td>Value for Money<\/td><td><strong>TCO \/ LCC \/ WOL<\/strong>; price alone is not VfM<\/td><\/tr>\n <tr><td>Five principles<\/td><td>Transparency \u00b7 Professionalism \u00b7 Broader Obligations \u00b7 Extended Legal \u00b7 Public Accountability (<strong>Rule 144<\/strong>)<\/td><\/tr>\n <tr><td>Financial propriety<\/td><td><strong>Rule 21, GFR<\/strong> \u2014 ordinary-prudence test<\/td><\/tr>\n <tr><td>CAG<\/td><td><strong>Articles 149\u2013151<\/strong>; SAII<\/td><\/tr>\n <tr><td>Khadi \/ MSE reservation<\/td><td><strong>20%<\/strong> handloom; <strong>358<\/strong> items exclusive to MSEs<\/td><\/tr>\n <tr><td>MSE purchase target<\/td><td><strong>25%<\/strong> (4% SC\/ST, 3% women); MSE band <strong>L1+15%<\/strong><\/td><\/tr>\n <tr><td>MII local content<\/td><td>Class-I <strong>50%<\/strong>, Class-II <strong>20%<\/strong>; preference margin <strong>20%<\/strong><\/td><\/tr>\n <tr><td>MII exemptions<\/td><td>Below <strong>\u20b95 lakh<\/strong>; CA certificate above <strong>\u20b910 crore<\/strong><\/td><\/tr>\n <tr><td>Procurement cycle<\/td><td>Need \u2192 Bid Invitation \u2192 Evaluation\/Award \u2192 Contract Mgmt \u2192 Disposal<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch2\" data-chapter=\"2\">\n\n <div class=\"chapter-heading-block\" id=\"c2-need\">\n <span class=\"chapter-badge\">CH 2 \u00b7 NEED & PLANNING<\/span>\n <h2>Need Assessment, Specifications & Procurement Planning<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Where procurement begins (2.1)<\/div>\n <div class=\"def-text\">\n Procurement should be initiated <strong>only on an indent<\/strong> from the user Department (Annexure 5). The indenting authority first determines the <strong>need and anticipated quantum<\/strong>. A clear description and specification of need is of fundamental importance to value for money, transparency, competition and a level playing field \u2014 and the user department must <strong>retain all documents<\/strong> on the determination and the technical\/financial\/budgetary approvals.\n <\/div>\n <\/div>\n\n <p>Six matters are settled during the need-assessment stage, each feeding into the indent:<\/p>\n\n <p>Need assessment settles six questions before a tender is floated:<\/p>\n <ol class=\"parts-list decimal teal\">\n <li><strong>Description<\/strong> \u2014 what is needed, by generic description and not by brand name.<\/li>\n <li><strong>Method<\/strong> \u2014 whether to own, lease, hire, or buy it as a service.<\/li>\n <li><strong>Quantity<\/strong> \u2014 how much, in the proper unit of measure.<\/li>\n <li><strong>Time & Place<\/strong> \u2014 when and where it is required, planned well in advance.<\/li>\n <li><strong>Specifications<\/strong> \u2014 the technical specification (covered in 2.2).<\/li>\n <li><strong>Cost Estimate<\/strong> \u2014 a realistic, objective estimate of value.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">What need assessment must decide (2.1)<\/div>\n <svg viewBox=\"0 0 600 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Hub and spoke of the six need-assessment decisions\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"56.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"123.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"416.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"300.0\" y2=\"324.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"257.0\"\/>\n<line x1=\"300\" y1=\"190\" x2=\"184.0\" y2=\"123.0\"\/>\n<\/g>\n<circle cx=\"300\" cy=\"190\" r=\"58\" fill=\"#10243f\"\/>\n<text x=\"300\" y=\"186\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">NEED<\/text>\n<text x=\"300\" y=\"205\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#cfe0f2\">assessment<\/text>\n<rect x=\"221.0\" y=\"33.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"61.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#1c5da6\">Description<\/text>\n<rect x=\"337.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#0e8f7a\">Method<\/text>\n<rect x=\"337.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2\"\/>\n<text x=\"416.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c97c10\">Quantity<\/text>\n<rect x=\"221.0\" y=\"301.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2\"\/>\n<text x=\"300.0\" y=\"329.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#7e3eb5\">Time & Place<\/text>\n<rect x=\"105.0\" y=\"234.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"262.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#c0392b\">Specifications<\/text>\n<rect x=\"105.0\" y=\"100.0\" width=\"158\" height=\"46\" rx=\"11\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2\"\/>\n<text x=\"184.0\" y=\"128.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"800\" fill=\"#41617f\">Cost Estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Except for proprietary single-source purchase, avoid brand \/ trade names; where unavoidable, add the words <strong>\"or substantially equivalent\"<\/strong>. Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight, not length).<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-cost\">\n <span class=\"section-badge slate\">\u00a7 2.1(f)<\/span>\n <h3>Estimation of cost<\/h3>\n <\/div>\n\n <p>The estimated cost is vital for approvals and for judging the reasonableness of bid prices, so it must be worked out <strong>realistically and objectively<\/strong>. The methods are neither mandatory nor ranked \u2014 <strong>triangulating<\/strong> several gives a more accurate estimate. Which one fits depends on what data exists:<\/p>\n\n <p>A realistic estimate is built, in order of preference, from: <strong>market price discovery<\/strong>; the <strong>Last Purchase Price<\/strong> updated for quantity, time and terms; <strong>budgetary or catalogue rates<\/strong>; and, failing these, indices and a professional estimate.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Choosing a cost-estimation method (2.1(f))<\/div>\n <svg viewBox=\"0 0 660 270\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Decision ladder for cost estimation methods\">\n<rect x=\"60\" y=\"30\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"30\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#1c5da6\"\/>\n<circle cx=\"92\" cy=\"53.0\" r=\"14\" fill=\"#1c5da6\"\/>\n<text x=\"92\" y=\"58.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"120\" y=\"58.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Market price discovery<\/text>\n<rect x=\"60\" y=\"88\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"88\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<circle cx=\"92\" cy=\"111.0\" r=\"14\" fill=\"#0e8f7a\"\/>\n<text x=\"92\" y=\"116.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"120\" y=\"116.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Last Purchase Price + update<\/text>\n<rect x=\"60\" y=\"146\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"146\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#c97c10\"\/>\n<circle cx=\"92\" cy=\"169.0\" r=\"14\" fill=\"#c97c10\"\/>\n<text x=\"92\" y=\"174.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"120\" y=\"174.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Budgetary \/ catalogue rates<\/text>\n<rect x=\"60\" y=\"204\" width=\"560\" height=\"46\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"60\" y=\"204\" width=\"6\" height=\"46\" rx=\"3\" fill=\"#41617f\"\/>\n<circle cx=\"92\" cy=\"227.0\" r=\"14\" fill=\"#41617f\"\/>\n<text x=\"92\" y=\"232.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"120\" y=\"232.0\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Indices & professional estimate<\/text>\n<\/svg>\n <div class=\"fig-cap\">Budgetary quotes are <strong>not<\/strong> exact estimates: a bidder expecting shortlisting may quote high, one not expecting it may quote abnormally low. Where fewer than three arrive, average those received.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-spec\">\n <span class=\"section-badge amber\">\u00a7 2.2<\/span>\n <h3>Formulation of Technical Specifications (TS)<\/h3>\n <\/div>\n\n <p>Specifications are the <strong>benchmarks<\/strong> against which technical responsiveness is verified and bids evaluated (<strong>Rule 173(ix), GFR 2017<\/strong>). Well-defined TS help bidders prepare responsive bids and the entity compare them, and they safeguard quality. A good specification must:<\/p>\n\n <ol class=\"parts-list decimal amber\">\n <li><strong>Ensure a level playing field<\/strong> and the widest competition; be unambiguous, precise, objective, functional, broad-based\/generic, standardised and measurable.<\/li>\n <li><strong>Cover only the bare essential<\/strong> technical, qualitative and performance characteristics \u2014 no superfluous features causing unwarranted expenditure.<\/li>\n <li><strong>Rest on BIS standards<\/strong> where they exist (preference to BIS-marked goods); international standards only in their absence, with deviations recorded in writing.<\/li>\n <li><strong>Use metric units<\/strong> for all dimensions (FPS equivalents shown only if unavoidable).<\/li>\n <li><strong>Require new, unused, current models<\/strong> incorporating recent design and material improvements \u2014 avoiding obsolete goods, unless otherwise provided.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-green\">\n <span class=\"section-badge teal\">\u00a7 2.2.8<\/span>\n <h3>Green procurement, Ecomark & energy-efficiency labels<\/h3>\n <\/div>\n\n <p>Specifications should comply with <strong>sustainability criteria<\/strong> and pollution-control rules, prefer low-impact packaging, and may require the <strong>Ecomark Label<\/strong> under the <strong>Ecomark Certification Rules, 2023<\/strong> \u2014 supporting the principle of <strong>LiFE (Lifestyle for Environment)<\/strong>. Energy efficiency is signalled by the BEE star system:<\/p>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">1 Mar 2002<\/div><div class=\"st-cap\"><strong>BEE<\/strong> set up under the Energy Conservation Act, 2001<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">34 \/ 11<\/div><div class=\"st-cap\">Appliances covered \/ for which <strong>labelling is mandatory<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">5\u2605 AC<\/div><div class=\"st-cap\">Split AC threshold (usage >1000 hrs\/yr; <strong>3\u2605<\/strong> if limited)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4\u2605 fridge<\/div><div class=\"st-cap\">Frost-free refrigerator threshold rating<\/div><\/div>\n <\/div>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">BEE star rating \u2014 the higher the stars, the more efficient<\/div>\n <svg viewBox=\"0 0 660 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Five star energy efficiency meter\">\n<rect x=\"80\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#cfe8d8\"\/>\n<text x=\"124.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★<\/text>\n<rect x=\"176\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#9ed4b3\"\/>\n<text x=\"220.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">★★<\/text>\n<rect x=\"272\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#5cb98a\"\/>\n<text x=\"316.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">3★<\/text>\n<rect x=\"368\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#2a9d6a\"\/>\n<text x=\"412.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">4★<\/text>\n<rect x=\"464\" y=\"70\" width=\"88\" height=\"58\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<text x=\"508.0\" y=\"105.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"18\" font-weight=\"800\" fill=\"#0a3d2c\">5★<\/text>\n<text x=\"80\" y=\"52\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"700\" fill=\"#10243f\">BEE star rating \u2014 more stars = more energy-efficient<\/text>\n<text x=\"80\" y=\"158\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"700\" fill=\"#0e8f7a\">Higher rating, lower running cost →<\/text>\n<\/svg>\n <div class=\"fig-cap\">Specifications should emphasise efficiency, optimum fuel\/power use, environmentally friendly materials, reduced noise\/emissions and low maintenance cost.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-sanction\">\n <span class=\"section-badge purple\">\u00a7 2.3<\/span>\n <h3>Technical, administrative & budgetary sanctions and indents<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Raise the indent<\/div><div class=\"fs-text\">User department submits a <strong>Purchase Requisition<\/strong> (Annexure 5), allowing adequate procurement time.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Certify funds<\/div><div class=\"fs-text\">Certify <strong>budget availability<\/strong> and note the liability against the available budget before approval.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Approve \/ urgency<\/div><div class=\"fs-text\">Approve per the Schedule of Powers (Annexure 4); a short lead time needs an <strong>urgency certificate<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Monitor<\/div><div class=\"fs-text\">Indentor and procuring authority track progress through registers (Annexures 6 & 7).<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c2-risk1\">\n <span class=\"section-badge red\">\u00a7 2.4<\/span>\n <h3>Need assessment & specification \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Need <strong>artificially created or exaggerated<\/strong> to channel benefit to a person\/organisation.<\/td><td>Keep records of decisions and data; involve <strong>procurement and finance functions<\/strong>; consult end-users and stakeholders.<\/td><\/tr>\n <tr><td><strong>Delays<\/strong> in need assessment \/ indent generation force shortcut procedures that dilute transparency and VfM.<\/td><td>Assess need <strong>well in advance<\/strong>; for urgent cases record justification and obtain an urgency certificate from the competent authority.<\/td><\/tr>\n <tr><td><strong>Inadequate cost estimate<\/strong> causes poor bidder response, delays or quality loss.<\/td><td>Prepare estimates with <strong>due diligence<\/strong>, factoring inflation, technology change and profit margins.<\/td><\/tr>\n <tr><td><strong>Subjective specifications<\/strong> (e.g. sample-based evaluation) invite allegations of corruption.<\/td><td>Display a <strong>stock sample<\/strong> for indeterminable parameters (shade, finish, workmanship); require a <strong>pre-production sample<\/strong> before bulk clearance.<\/td><\/tr>\n <tr><td>Specifications <strong>tilted to favour<\/strong> a vendor; or <strong>asymmetric<\/strong> sharing of need information.<\/td><td>Use a formal market-discovery tool \u2014 a <strong>pre-bid conference and\/or well-publicised EoI<\/strong>; invite comments on the conditions.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c2-plan\">\n <span class=\"section-badge blue\">\u00a7 2.5<\/span>\n <h3>Procurement planning<\/h3>\n <\/div>\n\n <p>After the indent, the procuring entity makes the decisions that turn a need into a tender. Three numbers anchor the discipline:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 144(x)<\/div><div class=\"st-cap\">Publish the <strong>Annual Procurement Plan<\/strong> on GeM\/CPPP \u2014 not an initiation of procurement<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">10 days<\/div><div class=\"st-cap\">Working days to <strong>review the indent<\/strong> for completeness, funding & VfM<\/div><\/div>\n <div class=\"stat-tile\"><div class=\"st-num\">Rule 157<\/div><div class=\"st-cap\">Normally <strong>do not split\/package<\/strong> to limit competition or avoid sanction<\/div><\/div>\n <\/div>\n\n <ol class=\"parts-list decimal\">\n <li><strong>Reassess quantity & packaging\/slicing.<\/strong> Division is allowed only for reasons recorded in writing \u2014 efficiency, economy, timely supply, wider competition or <strong>MSE access<\/strong>.<\/li>\n <li><strong>Declare any participation limits<\/strong> as per the Government's preference policy; lay down only reasonable, justifiable eligibility\/pre-qualification criteria.<\/li>\n <li><strong>Select the tendering system<\/strong> (single\/two stage, single\/two bid) and the <strong>mode of procurement<\/strong> (open \/ limited \/ single tender, reverse auction).<\/li>\n <li><strong>Declare timeframes<\/strong> for each stage from tender to contract (Rule 144(ix)), and prepare an <strong>integrated annual procurement plan<\/strong> staggering loads across the year.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c2-cartel\">\n <span class=\"section-badge slate\">\u00a7 2.5.1<\/span>\n <h3>Mitigating cartels & strategising large procurement<\/h3>\n <\/div>\n\n <p>Need assessment and procurement planning is the main stage at which <strong>cartel formation<\/strong> can be addressed \u2014 by widening the field and varying the pattern bidders rely on:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Widen the field<\/div><div class=\"cat-title\">More suppliers<\/div><p>Encourage new firms to register; review tailor-made specifications so commercially available alternatives qualify; consider substitutes.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Watch the venue<\/div><div class=\"cat-title\">Pre-bid caution<\/div><p>Pre-bid conferences can <strong>facilitate collusion<\/strong> \u2014 hold them virtually where feasible, though they remain useful for turnkey or costly equipment.<\/p><\/div>\n <div class=\"cat-card e\"><div class=\"cat-label\">Break the pattern<\/div><div class=\"cat-title\">Vary year-on-year<\/div><p>Change the <strong>mode<\/strong> (OTE\u2194LTE, GTE\u2194OTE), the <strong>quantity<\/strong> (package\/slice\/club items) and the <strong>pre-qualification criteria<\/strong>.<\/p><\/div>\n <\/div>\n\n <p>Large procurements need market research before rules are applied \u2014 the parameters worth studying are production capacity vs demand, the <strong>volume<\/strong> of the requirement relative to the market (would clubbing raise bargaining power?), the level of <strong>competition<\/strong> and cartelisation, <strong>supply-chain<\/strong> constraints (raw materials, logistics, geopolitics), specification variations, and <strong>pricing trends\/seasonality<\/strong>.<\/p>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Procurement planning \u2014 the headline risk (2.5.2)<\/div>\n <p><strong>Packaging, bundling or slicing<\/strong> done to avoid or reduce open competition \u2014 or a package so large that MSEs cannot participate \u2014 is the chief planning risk. The mitigation is a <strong>clear written policy<\/strong> for packaging\/bundling, with EMD affordability kept in view and bidders allowed to <strong>bid for slices<\/strong> against proportional EMD.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz2\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 2 Quiz \u2014 need, specifications & planning<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 2. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage2\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c2-recap\">\n <div class=\"recap-title\">⚡ Chapter 2 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Trigger for procurement<\/td><td>An <strong>indent<\/strong> from the user Department (Annexure 5)<\/td><\/tr>\n <tr><td>Brand names<\/td><td>Avoid; if unavoidable add <strong>\"or substantially equivalent\"<\/strong><\/td><\/tr>\n <tr><td>Units of purchase<\/td><td>Buy in <strong>units of manufacture<\/strong> (e.g. steel by weight)<\/td><\/tr>\n <tr><td>Cost estimation<\/td><td><strong>Triangulate<\/strong>; budgetary quotes ideally <strong>three<\/strong> (10\u201321 days)<\/td><\/tr>\n <tr><td>Specifications standard<\/td><td>Based on <strong>BIS<\/strong>; prefer BIS-marked goods; metric units<\/td><\/tr>\n <tr><td>Specs rule reference<\/td><td><strong>Rule 173(ix), GFR 2017<\/strong><\/td><\/tr>\n <tr><td>Energy labels (BEE)<\/td><td>BEE since <strong>1 Mar 2002<\/strong>; Split AC <strong>5\u2605<\/strong>, fridge <strong>4\u2605<\/strong><\/td><\/tr>\n <tr><td>Green label<\/td><td><strong>Ecomark Rules 2023<\/strong>; principle of LiFE<\/td><\/tr>\n <tr><td>Sanction prerequisite<\/td><td>Certify <strong>budget availability<\/strong>; urgency certificate if short lead<\/td><\/tr>\n <tr><td>Annual Procurement Plan<\/td><td><strong>Rule 144(x)<\/strong>; not a procurement initiation<\/td><\/tr>\n <tr><td>Review window<\/td><td><strong>10 working days<\/strong> to review the indent<\/td><\/tr>\n <tr><td>No splitting<\/td><td><strong>Rule 157, GFR 2017<\/strong> \u2014 except for recorded reasons (incl. MSE access)<\/td><\/tr>\n <tr><td>Cartel mitigation<\/td><td>Best at planning \u2014 vary mode, quantity & criteria<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch3\" data-chapter=\"3\">\n\n <div class=\"chapter-heading-block\" id=\"c3-srm\">\n <span class=\"chapter-badge\">CH 3 \u00b7 SUPPLIER RELATIONS<\/span>\n <h2>Supplier Relationship Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What SRM covers (3.1)<\/div>\n <div class=\"def-text\">\n Supplier Relationship Management binds the supply side to ethical conduct and keeps the supplier base healthy. It has three functions: ensuring suppliers <strong>comply with the Code of Integrity and Integrity Pact (CIPP)<\/strong> where stipulated; <strong>removing<\/strong> firms from the registered list and <strong>debarring<\/strong> them where warranted; and <strong>developing new sources<\/strong> and registering suppliers.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-cipp\">\n <span class=\"section-badge red\">\u00a7 3.2<\/span>\n <h3>Code of Integrity for Public Procurement (CIPP)<\/h3>\n <\/div>\n\n <p>Public procurement is prone to corruption and ethical risk, so both procuring officials and bidders\/suppliers must observe the highest standard of ethics (<strong>Rule 175, GFR 2017<\/strong>). Officials sign periodic declarations; bidders declare adherence in registration and tender documents, with a warning of punitive action. The code forbids seven prohibited practices:<\/p>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The seven prohibited practices under the Code of Integrity (3.2)<\/div>\n <svg viewBox=\"0 0 640 470\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Seven prohibited practices under the Code of Integrity\">\n<g stroke=\"#cdd8e4\" stroke-width=\"2\">\n<line x1=\"320\" y1=\"225\" x2=\"320.0\" y2=\"67.0\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"443.5\" y2=\"126.5\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"474.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"388.6\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"251.4\" y2=\"367.4\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"166.0\" y2=\"260.2\"\/>\n<line x1=\"320\" y1=\"225\" x2=\"196.5\" y2=\"126.5\"\/>\n<\/g>\n<circle cx=\"320\" cy=\"225\" r=\"60\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"219\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">CODE OF<\/text>\n<text x=\"320\" y=\"235\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">INTEGRITY<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#ffd95a\">Rule 175<\/text>\n<circle cx=\"320.0\" cy=\"67.0\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"320.0\" y=\"72.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Corrupt<\/text>\n<circle cx=\"443.5\" cy=\"126.5\" r=\"48\" fill=\"#fffbf0\" stroke=\"#c97c10\" stroke-width=\"2.5\"\/>\n<text x=\"443.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c97c10\">Fraudulent<\/text>\n<circle cx=\"474.0\" cy=\"260.2\" r=\"48\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"474.0\" y=\"265.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">Anti-competitive<\/text>\n<circle cx=\"388.6\" cy=\"367.4\" r=\"48\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"388.6\" y=\"372.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">Coercive<\/text>\n<circle cx=\"251.4\" cy=\"367.4\" r=\"48\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"251.4\" y=\"363.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Conflict of<\/text>\n<text x=\"251.4\" y=\"379.4\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">Interest<\/text>\n<circle cx=\"166.0\" cy=\"260.2\" r=\"48\" fill=\"#f6f8fb\" stroke=\"#41617f\" stroke-width=\"2.5\"\/>\n<text x=\"166.0\" y=\"256.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Undue<\/text>\n<text x=\"166.0\" y=\"272.2\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#41617f\">Advantage<\/text>\n<circle cx=\"196.5\" cy=\"126.5\" r=\"48\" fill=\"#fff5f5\" stroke=\"#c0392b\" stroke-width=\"2.5\"\/>\n<text x=\"196.5\" y=\"131.5\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">Obstructive<\/text>\n<\/svg>\n <div class=\"fig-cap\">Voluntary disclosure of a <strong>conflict of interest<\/strong> or a past transgression does not mean automatic disqualification \u2014 the procuring entity may evaluate it and take mitigation steps.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal red\">\n <li><strong>Corrupt practice<\/strong> \u2014 offering, giving or accepting any gratification, gift or reward to influence an official act.<\/li>\n <li><strong>Fraudulent practice<\/strong> \u2014 any misrepresentation or omission of facts to influence a process or contract.<\/li>\n <li><strong>Anti-competitive practice<\/strong> \u2014 collusion, bid-rigging or any arrangement among bidders under the Competition Act, 2002.<\/li>\n <li><strong>Coercive practice<\/strong> \u2014 harming or threatening persons or property to influence participation or conduct.<\/li>\n <li><strong>Conflict of interest<\/strong> \u2014 a bidder's interest that conflicts with fair performance of the contract.<\/li>\n <li><strong>Undue advantage<\/strong> \u2014 taking improper benefit of leaked or privileged information.<\/li>\n <li><strong>Obstructive practice<\/strong> \u2014 concealing or destroying evidence, or impeding an inquiry, inspection or audit.<\/li>\n <\/ol>\n\n <div class=\"callout slate\">\n <div class=\"callout-label\">Proactive disclosures a bidder must make<\/div>\n <ul class=\"note-list slate\">\n <li><span class=\"nl-tag\">COI<\/span><span class=\"nl-text\">Suo-moto declare any <strong>conflict of interest<\/strong>, pre-existing or arising at any stage of the process or contract execution.<\/span><\/li>\n <li><span class=\"nl-tag\">3 YRS<\/span><span class=\"nl-text\">Declare any <strong>previous transgressions<\/strong> of the code with any entity in any country in the last <strong>three years<\/strong>, or any debarment by another procuring entity.<\/span><\/li>\n <li><span class=\"nl-tag\">AGENTS<\/span><span class=\"nl-text\">Disclose any <strong>commissions or fees<\/strong> paid (or to be paid) to agents\/representatives \u2014 name, address, amount, currency and purpose.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"compare-intro\"><strong>Punitive provisions<\/strong> escalate with how far the contract has progressed:<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:34%\"><col style=\"width:66%\"><\/colgroup>\n <thead><tr><th>Stage<\/th><th>Measures the procuring entity may take<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Bid under consideration<\/td><td>Forfeiture\/encashment of <strong>bid security<\/strong>; calling off pre-contract negotiations; <strong>rejection and exclusion<\/strong> from the process.<\/td><\/tr>\n <tr><td class=\"label-cell\">Contract already awarded<\/td><td><strong>Cancellation<\/strong> and recovery of loss; forfeiture of other security\/bond; recovery of payments (incl. advances) with interest.<\/td><\/tr>\n <tr><td class=\"label-cell\">In addition<\/td><td>Removal from the registered list \/ <strong>debarment for not less than six months<\/strong>; anti-competitive practice reported to the <strong>Competition Commission of India<\/strong> (by a Joint-Secretary-level officer); disciplinary or criminal proceedings.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-pact\">\n <span class=\"section-badge teal\">\u00a7 3.3<\/span>\n <h3>Integrity Pact<\/h3>\n <\/div>\n\n <p>The <strong>Pre-bid Integrity Pact<\/strong> binds both buyer and sellers to ethical conduct and transparency across the whole contract \u2014 removing a bidder's fear that, while it abjures bribery, a competitor may bribe and win. Ministries incorporate it (with the Minister-in-charge's approval) for procurements above a chosen threshold.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">80\u201390%<\/div><div class=\"st-cap\">By value, the Integrity Pact threshold should cover the <strong>bulk of annual procurement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">PSBs \u00b7 PSICs \u00b7 FIs<\/div><div class=\"st-cap\">Per CVC's revised SOP, these must also adopt the Integrity Pact<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">IEM<\/div><div class=\"st-cap\">Independent External Monitors appointed by CVC oversee the Pact<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-grievance\">\n <span class=\"section-badge purple\">\u00a7 3.4<\/span>\n <h3>Grievances and their redressal<\/h3>\n <\/div>\n\n <p>Tender documents must carry a grievance-redressal clause. Only a <strong>directly affected bidder<\/strong> who participated in the relevant stage can represent \u2014 and only on the stage they qualified in.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Grievance-redressal timeline (3.4)<\/div>\n <svg viewBox=\"0 0 660 150\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Grievance redressal timeline\">\n<defs><marker id=\"tl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<line x1=\"110\" y1=\"80\" x2=\"598\" y2=\"80\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#tl)\"\/>\n<circle cx=\"130\" cy=\"80\" r=\"15\" fill=\"#10243f\"\/>\n<text x=\"130\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#10243f\">Day 0<\/text>\n<text x=\"130\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">decision<\/text>\n<circle cx=\"330\" cy=\"80\" r=\"15\" fill=\"#1c5da6\"\/>\n<text x=\"330\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">5 days<\/text>\n<text x=\"330\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">seek review<\/text>\n<circle cx=\"520\" cy=\"80\" r=\"15\" fill=\"#0e8f7a\"\/>\n<text x=\"520\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">30 days<\/text>\n<text x=\"520\" y=\"112\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11.5\" fill=\"#5a6b7d\">redress & close<\/text>\n<\/svg>\n <div class=\"fig-cap\">This route is <strong>in addition to<\/strong> complaints to the organisation's vigilance department.<\/div>\n <\/div>\n\n <p>Several decisions are taken in good faith under internal guidelines and are <strong>not open to review<\/strong>: the determination of need; the choice of mode of procurement or tendering system; the choice of selection procedure; specifications (except where vague or too restrictive); participation limits and purchase-preference under Government policy; the decision to negotiate with L1; and cancellation of the process (unless it will be re-tendered). Contract-ambiguity issues must be raised <strong>before<\/strong> the contract is signed.<\/p>\n\n <div class=\"section-heading-block\" id=\"c3-conduct\">\n <span class=\"section-badge amber\">\u00a7 3.5<\/span>\n <h3>Conduct of public servants \u2014 risks and mitigations<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:50%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Risk<\/th><th>Mitigation<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>Hospitality<\/strong> from suppliers beyond laid-down limits.<\/td><td>Decline; record and report hospitality; follow conduct-rule limits.<\/td><\/tr>\n <tr><td><strong>Gifts<\/strong> from suppliers tending to influence decisions.<\/td><td>Refuse gifts beyond permissible value; disclose under conduct rules.<\/td><\/tr>\n <tr><td><strong>Private purchases<\/strong> from official suppliers at concessional terms.<\/td><td>Avoid private dealings with firms one deals with officially.<\/td><\/tr>\n <tr><td><strong>Sponsorship<\/strong> of events by prospective suppliers.<\/td><td>Avoid accepting sponsorship that could compromise impartiality.<\/td><\/tr>\n <tr><td><strong>Conflict of interest<\/strong> \u2014 officers related to or financially linked with a bidder.<\/td><td>Declare relationships; exclude conflicted officers from need-determination, tender-document and evaluation roles.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c3-register\">\n <span class=\"section-badge blue\">\u00a7 3.6<\/span>\n <h3>Registration, empanelment & pre-qualification<\/h3>\n <\/div>\n\n <p>These three shortlisting devices differ in rigour and purpose (<strong>Rule 150, GFR 2017<\/strong>):<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Identity<\/div><div class=\"cat-title\">Registration<\/div><p>Establishes <strong>genuine identification<\/strong> of a firm (e.g. for e-procurement); based on less-rigorous checks of capability and past experience.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Capability<\/div><div class=\"cat-title\">Empanelment<\/div><p>Establishes <strong>prima-facie capability<\/strong> for restricted tendering \u2014 not open tendering.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Per tender<\/div><div class=\"cat-title\">Pre-qualification<\/div><p>Rigorous, tender-specific shortlisting through <strong>wide publicity<\/strong> where the requirement dictates strong qualification criteria.<\/p><\/div>\n <\/div>\n\n <p>Registration is granted for specific trade groups, valid <strong>one to three years<\/strong> (provisional until the firm satisfactorily executes one order), with a unique registration number and EMD exemption within prescribed monetary limits. Registration grades by order value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\" style=\"--x:1\"><div class=\"st-num\">Grade A<\/div><div class=\"st-cap\">Orders <strong>Rs 25 lakh and above<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Grade B<\/div><div class=\"st-cap\"><strong>Rs 5 lakh \u2013 Rs 25 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Grade C<\/div><div class=\"st-cap\"><strong>Rs 1 lakh \u2013 Rs 5 lakh<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">3 \/ 6<\/div><div class=\"st-cap\">Removed if no response to <strong>3 tenders\/yr<\/strong> despite <strong>6 invitations<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c3-debar\">\n <span class=\"section-badge red\">\u00a7 3.7<\/span>\n <h3>Debarment of suppliers<\/h3>\n <\/div>\n\n <p>Eligibility to bid depends on integrity and performance. Debarment (\"banning\", \"suspension\", \"black-listing\" all mean the same) follows two tracks under the GFR and the PPD guidelines \u2014 always after a <strong>reasonable opportunity to represent<\/strong>:<\/p>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:40%\"><col style=\"width:36%\"><\/colgroup>\n <thead><tr><th>Trigger<\/th><th>Ground<\/th><th>Period<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Conviction (Rule 151)<\/td><td>Convicted under the <strong>Prevention of Corruption Act, 1988<\/strong> or IPC for loss of life\/property in a procurement contract.<\/td><td>Debarred up to <strong>3 years<\/strong> from the date of debarment.<\/td><\/tr>\n <tr><td class=\"label-cell\">Single Ministry\/Dept<\/td><td>Transgression warranting debarment within one Ministry's jurisdiction.<\/td><td>Up to <strong>2 years<\/strong>; effective from upload to the website.<\/td><\/tr>\n <tr><td class=\"label-cell\">Across all Ministries<\/td><td>Serious cases referred to \/ acted on by DoE.<\/td><td>Up to <strong>3 years<\/strong>.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile red\"><div class=\"st-num\">12 weeks<\/div><div class=\"st-cap\">Target time from zero-day to start of the <strong>debarment period<\/strong><\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Executive<\/div><div class=\"st-cap\">Debarment is an executive function \u2014 <strong>not<\/strong> allocated to Vigilance<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">GeM \u00b7 2 yrs<\/div><div class=\"st-cap\">GeM may debar bidders for up to <strong>2 years<\/strong> on its portal<\/div><\/div>\n <\/div>\n\n <p>Indian agents who wish to quote directly on behalf of foreign principals may be <strong>enlisted<\/strong> by Ministries\/Departments where required (<strong>Rule 152, GFR 2017<\/strong>) \u2014 section 3.8.<\/p>\n\n \n <div class=\"ix\" id=\"quiz3\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 3 Quiz \u2014 integrity, grievances & debarment<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 3. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage3\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c3-recap\">\n <div class=\"recap-title\">⚡ Chapter 3 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>SRM functions<\/td><td>CIPP compliance \u00b7 removal\/debarment \u00b7 new-source development<\/td><\/tr>\n <tr><td>Code of Integrity<\/td><td><strong>Rule 175, GFR 2017<\/strong>; seven prohibited practices<\/td><\/tr>\n <tr><td>Prohibited practices<\/td><td>Corrupt \u00b7 Fraudulent \u00b7 Anti-competitive \u00b7 Coercive \u00b7 COI \u00b7 Undue Advantage \u00b7 Obstructive<\/td><\/tr>\n <tr><td>Transgression disclosure<\/td><td>Last <strong>3 years<\/strong>, any entity\/country<\/td><\/tr>\n <tr><td>CIPP min. debarment<\/td><td><strong>Not less than 6 months<\/strong><\/td><\/tr>\n <tr><td>Integrity Pact coverage<\/td><td><strong>80\u201390%<\/strong> of annual procurement by value<\/td><\/tr>\n <tr><td>Grievance \u2014 review<\/td><td>Within <strong>5 days<\/strong>; post-award close within <strong>30 days<\/strong><\/td><\/tr>\n <tr><td>Registration rule<\/td><td><strong>Rule 150<\/strong>; valid <strong>1\u20133 years<\/strong>; Grades A\/B\/C<\/td><\/tr>\n <tr><td>Debarment \u2014 conviction<\/td><td><strong>Rule 151<\/strong>; up to <strong>3 years<\/strong><\/td><\/tr>\n <tr><td>Debarment \u2014 Ministry \/ DoE<\/td><td><strong>2 years<\/strong> (single) \/ <strong>3 years<\/strong> (across all)<\/td><\/tr>\n <tr><td>Indian agents<\/td><td>Enlisted under <strong>Rule 152<\/strong><\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch4\" data-chapter=\"4\">\n\n <div class=\"chapter-heading-block\" id=\"c4-modes\">\n <span class=\"chapter-badge\">CH 4 \u00b7 MODES & TENDERING<\/span>\n <h2>Modes of Procurement & Tendering Systems<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Choosing how to buy (4.1)<\/div>\n <div class=\"def-text\">\n Offers must be invited by a procedure that balances the <strong>widest competition<\/strong> against the complexity, time, effort and cost of the procedure. Different modes vary the width and specificity of the bidder catchment to suit the situation \u2014 the mode of procurement is the <strong>\"Right Source\"<\/strong> of the Five R's. Powers to approve each mode are delegated through the DFPR and each entity's Schedule of Procurement Powers (SoPP).\n <\/div>\n <\/div>\n\n <p>All modes fall into five families, arranged from the widest competition to single source:<\/p>\n <ol class=\"parts-list decimal blue\">\n <li><strong>Advertised<\/strong> (Rule 161) \u2014 OTE, GTE, Rate Contract and electronic Reverse Auction.<\/li>\n <li><strong>Pre-Qualification<\/strong> \u2014 Pre-Qualification Bidding and the Approved Vendor List.<\/li>\n <li><strong>Restricted<\/strong> (Rule 162) \u2014 Limited Tender (LTE) and Special LTE.<\/li>\n <li><strong>Nomination<\/strong> (Rule 166) \u2014 Proprietary Article Certificate (PAC) and Single Tender Enquiry \u2014 single source.<\/li>\n <li><strong>Shopping<\/strong> (Rules 154\u2013155) \u2014 direct purchase and the Purchase Committee.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">The five families of procurement mode (4.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Spectrum of procurement modes from widest competition to single source\">\n<defs><marker id=\"sp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#sp)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">WIDEST COMPETITION<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#c0392b\">SINGLE SOURCE<\/text>\n<rect x=\"26.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#1c5da6\"\/>\n<text x=\"86.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">ADVERTISED<\/text>\n<text x=\"86.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 161<\/text>\n<rect x=\"158.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#0e8f7a\"\/>\n<text x=\"218.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">PRE-QUAL<\/text>\n<text x=\"218.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">shortlist<\/text>\n<rect x=\"290.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c97c10\"\/>\n<text x=\"350.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">RESTRICTED<\/text>\n<text x=\"350.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 162<\/text>\n<rect x=\"422.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#7e3eb5\"\/>\n<text x=\"482.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">NOMINATION<\/text>\n<text x=\"482.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 166<\/text>\n<rect x=\"554.0\" y=\"70\" width=\"120.0\" height=\"110\" rx=\"11\" fill=\"#c0392b\"\/>\n<text x=\"614.0\" y=\"125\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">SHOPPING<\/text>\n<text x=\"614.0\" y=\"150\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#dfe9f5\">Rule 154\/155<\/text>\n<\/svg>\n <div class=\"fig-cap\">Advertised modes seek the widest competition through wide publicity; nomination and shopping modes sit at the single-source end for special or small-value needs.<\/div>\n <\/div>\n\n <p>For routine goods, the mode is driven largely by <strong>value<\/strong>. The thresholds form a ladder from petty purchase to open tender:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Value thresholds \u2192 mode of procurement<\/div>\n <svg viewBox=\"0 0 660 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Value threshold ladder mapping procurement value to mode\">\n<defs><marker id=\"up\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"300\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up)\"\/>\n<text x=\"24\" y=\"165\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 165)\">higher value<\/text>\n<rect x=\"62\" y=\"30\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#1c5da6\"\/>\n<text x=\"84\" y=\"57\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Above Rs 50 lakh<\/text>\n<text x=\"84\" y=\"78\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Open Tender (OTE) \u2014 default<\/text>\n<text x=\"624\" y=\"57\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#1c5da6\">Rule 161<\/text>\n<rect x=\"62\" y=\"102\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"102\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"129\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Up to Rs 50 lakh<\/text>\n<text x=\"84\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender (LTE)<\/text>\n<text x=\"624\" y=\"129\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">Rule 162<\/text>\n<rect x=\"62\" y=\"174\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"174\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"201\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Rs 50k \u2013 Rs 5 lakh<\/text>\n<text x=\"84\" y=\"222\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Purchase Committee<\/text>\n<text x=\"624\" y=\"201\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">Rule 155<\/text>\n<rect x=\"62\" y=\"246\" width=\"578\" height=\"62\" rx=\"10\" fill=\"#41617f\" opacity=\"0.12\" stroke=\"#41617f\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"246\" width=\"6\" height=\"62\" rx=\"3\" fill=\"#41617f\"\/>\n<text x=\"84\" y=\"273\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#41617f\">Up to Rs 50,000<\/text>\n<text x=\"84\" y=\"294\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Direct (petty) purchase<\/text>\n<text x=\"624\" y=\"273\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#41617f\">Rule 154<\/text>\n<\/svg>\n <div class=\"fig-cap\">Scientific Ministries\/Departments enjoy enhanced limits \u2014 petty purchase up to <strong>Rs 1 lakh<\/strong> and Purchase Committee up to <strong>Rs 10 lakh<\/strong>. A requirement must never be split to dodge a threshold.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-advertised\">\n <span class=\"section-badge blue\">\u00a7 4.2–4.5<\/span>\n <h3>Advertised modes \u2014 OTE, GTE, Rate Contract & eRA<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:20%\"><col style=\"width:30%\"><col style=\"width:50%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>When used<\/th><th>Key features<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Open Tender Enquiry (OTE)<\/td><td>Procurements <strong>above Rs 50 lakh<\/strong>; the <strong>default mode<\/strong> (Rule 161).<\/td><td>Widest competition; NIT on <strong>GeM & CPPP<\/strong>; no prior registration insisted; tender documents <strong>free to download<\/strong>; best VfM but relatively complex.<\/td><\/tr>\n <tr><td class=\"label-cell\">Global Tender Enquiry (GTE)<\/td><td>When foreign sourcing is needed.<\/td><td><strong>No GTE up to Rs 200 crore<\/strong> without approval of the DoE-designated competent authority; foreign bidders may quote in foreign currency; e-procurement not mandatorily insisted.<\/td><\/tr>\n <tr><td class=\"label-cell\">Rate Contract \/ Framework Agreement<\/td><td>Common, repetitively-used items of standard specification.<\/td><td>Agreement on <strong>rate<\/strong>; <strong>no quantity<\/strong> mentioned or guaranteed; either party may withdraw on notice; supply orders placed during validity.<\/td><\/tr>\n <tr><td class=\"label-cell\">Electronic Reverse Auction (eRA)<\/td><td>Dynamic price discovery where specifications are firm.<\/td><td>Bidders compete by <strong>lowering prices<\/strong> in real time; available on GeM.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c4-restricted\">\n <span class=\"section-badge amber\">\u00a7 4.6–4.9<\/span>\n <h3>Pre-qualification & restricted modes<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">4.6 \/ 4.7<\/div><div class=\"cat-title\">PQB & Approved Vendor List<\/div><p><strong>Pre-Qualification Bidding<\/strong> shortlists capable bidders through wide publicity; an <strong>Approved Vendor List (AVL)<\/strong> holds vendors qualified for repeated draw-down. Both restrict bidding to qualified bidders.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">4.8 \/ 4.9<\/div><div class=\"cat-title\">LTE & SLTE<\/div><p><strong>Limited Tender Enquiry (LTE)<\/strong> \u2014 up to <strong>Rs 50 lakh<\/strong> (Rule 162), sent to <strong>more than three<\/strong> registered vendors and also published. <strong>Special LTE (SLTE)<\/strong> \u2014 above Rs 50 lakh in <strong>exceptional<\/strong> circumstances.<\/p><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-nomination\">\n <span class=\"section-badge purple\">\u00a7 4.10–4.13<\/span>\n <h3>Nomination & shopping modes<\/h3>\n <\/div>\n\n <p>Where competition is impossible or uneconomic, procurement is from a single source or by simple shopping (Rules 154, 155, 166):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:26%\"><col style=\"width:36%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Mode<\/th><th>Basis<\/th><th>Limit \/ note<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">PAC procurement<\/td><td>Proprietary Article Certificate \u2014 item available only from a named OEM\/proprietor or its authorised dealer.<\/td><td>Single source; the shortest route but needs a signed PAC (Rule 166).<\/td><\/tr>\n <tr><td class=\"label-cell\">STE without PAC<\/td><td>Single Tender Enquiry \u2014 one firm only, where a PAC cannot be certified.<\/td><td>More restricted powers than PAC.<\/td><\/tr>\n <tr><td class=\"label-cell\">Direct without quotation<\/td><td>Petty purchase of off-the-shelf, standard goods.<\/td><td>Up to <strong>Rs 50,000<\/strong> per case (Rule 154); <strong>Rs 1 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <tr><td class=\"label-cell\">Purchase Committee<\/td><td>Local committee of <strong>three members<\/strong> records a certificate.<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong> (Rule 155); <strong>Rs 10 lakh<\/strong> for scientific bodies.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For any procurement outside GeM under the shopping modes, the buyer must first generate a <strong>\"GeM Availability Report & Past Transaction Summary\" (GeMAR&PTS)<\/strong> with a unique ID on the GeM portal.<\/p>\n\n <div class=\"section-heading-block\" id=\"c4-tendering\">\n <span class=\"section-badge teal\">\u00a7 4.14–4.16<\/span>\n <h3>Tendering systems \u2014 single-stage vs two-stage<\/h3>\n <\/div>\n\n <div class=\"flow teal\">\n <div class=\"flow-step\"><div class=\"fs-num\">SINGLE STAGE<\/div><div class=\"fs-title\">One call<\/div><div class=\"fs-text\">A single tender with fully-defined specifications; bids invited, evaluated and awarded in one round.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 1 (EoI)<\/div><div class=\"fs-title\">Expression of Interest<\/div><div class=\"fs-text\">Where the solution is not pre-definable, an <strong>EoI<\/strong> first explores the market and refines specifications.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STAGE 2<\/div><div class=\"fs-title\">Detailed tender<\/div><div class=\"fs-text\">A detailed tender follows. A <strong>\"non-committal EoI\"<\/strong> (open to non-shortlisted bidders too) should be rare and carry no bid security.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c4-channels\">\n <span class=\"section-badge slate\">\u00a7 4.17<\/span>\n <h3>Channels of procurement & direct purchase on GeM<\/h3>\n <\/div>\n\n <p>Procurement runs through manual bids, e-procurement platforms or GeM \u2014 but receiving bids through <strong>e-procurement portals is mandatory<\/strong> (mixing electronic and manual bids is poor practice). On GeM, the direct-purchase route depends on value:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">\u2264 Rs 50,000<\/div><div class=\"st-cap\">Any supplier on GeM <strong>meeting the requirement<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rs 50k \u2013 Rs 10 L<\/div><div class=\"st-cap\">GeM seller with the <strong>lowest price<\/strong> among \u2265 3 different manufacturers<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">> Rs 10 lakh<\/div><div class=\"st-cap\">Through GeM <strong>bidding \/ reverse auction<\/strong><\/div><\/div>\n <\/div>\n\n <p>Where an item is available on GeM, it cannot be bought of the same specification outside GeM (subject to the GeMAR&PTS check).<\/p>\n\n \n <div class=\"ix\" id=\"quiz4\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 4 Quiz \u2014 modes, thresholds & channels<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 4. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage4\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c4-recap\">\n <div class=\"recap-title\">⚡ Chapter 4 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Mode = which R?<\/td><td>The <strong>\"Right Source\"<\/strong> of the Five R's<\/td><\/tr>\n <tr><td>Five families<\/td><td>Advertised \u00b7 Pre-Qualification \u00b7 Restricted \u00b7 Nomination \u00b7 Shopping<\/td><\/tr>\n <tr><td>Default mode<\/td><td><strong>Open Tender Enquiry<\/strong> (OTE), above Rs 50 lakh \u2014 Rule 161<\/td><\/tr>\n <tr><td>GTE restriction<\/td><td>No GTE <strong>up to Rs 200 crore<\/strong> without DoE-designated approval<\/td><\/tr>\n <tr><td>Rate Contract<\/td><td><strong>No quantity<\/strong> guaranteed; agreement on rate<\/td><\/tr>\n <tr><td>LTE<\/td><td>Up to <strong>Rs 50 lakh<\/strong>; <strong>> 3<\/strong> vendors \u2014 Rule 162<\/td><\/tr>\n <tr><td>SLTE<\/td><td>Above Rs 50 lakh, <strong>exceptional<\/strong> circumstances<\/td><\/tr>\n <tr><td>Nomination modes<\/td><td><strong>PAC<\/strong> & <strong>STE<\/strong> (single source) \u2014 Rule 166<\/td><\/tr>\n <tr><td>Direct (petty)<\/td><td>\u2264 <strong>Rs 50,000<\/strong>\/case \u2014 Rule 154<\/td><\/tr>\n <tr><td>Purchase Committee<\/td><td><strong>Rs 50,000 \u2013 Rs 5 lakh<\/strong>, 3 members \u2014 Rule 155<\/td><\/tr>\n <tr><td>GeM direct purchase<\/td><td>\u226450k any seller \u00b7 50k\u201310L lowest of \u22653 mfrs \u00b7 >10L bidding\/RA<\/td><\/tr>\n <tr><td>Bid channel<\/td><td><strong>e-procurement mandatory<\/strong>; no mixing with manual bids<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch5\" data-chapter=\"5\">\n\n <div class=\"chapter-heading-block\" id=\"c5-tdoc\">\n <span class=\"chapter-badge\">CH 5 \u00b7 BID INVITATION<\/span>\n <h2>Bid Invitation Process<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The tender document (5.1)<\/div>\n <div class=\"def-text\">\n The tender document is the <strong>fundamental document<\/strong> of public procurement \u2014 after award it becomes part of the contract. Clauses must be clear, self-contained and unambiguous to avoid disputes, delays and quality compromises. The Department of Expenditure has issued <strong>Model Tender Documents (MTDs)<\/strong> \u2014 Goods and Non-Consultancy Services (October 2021) and Consultancy Services (April 2023) \u2014 which entities customise for each procurement. A bid quoting <strong>NIL charges<\/strong> is treated as unresponsive.\n <\/div>\n <\/div>\n\n <p>Under Rule 168 a tender document is built from eight ordered sections, followed by the financial bid and the forms:<\/p>\n <ol class=\"parts-list roman blue\">\n <li>Notice Inviting Tender (NIT) and the Tender Information Sheet.<\/li>\n <li>Instructions to Bidders (ITB).<\/li>\n <li>Appendix to ITB (AITB).<\/li>\n <li>General Conditions of Contract (GCC).<\/li>\n <li>Special Conditions of Contract (SCC).<\/li>\n <li>Schedule of Requirements.<\/li>\n <li>Technical Specifications and Quality Assurance.<\/li>\n <li>Qualification and Evaluation Criteria.<\/li>\n <\/ol>\n <div class=\"figure\">\n <div class=\"figure-label\">Anatomy of a tender document (Rule 168) \u2014 5.1.3<\/div>\n <svg viewBox=\"0 0 660 400\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"The eight sections of a tender document\">\n<rect x=\"70\" y=\"20\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"20\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"20\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"43.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">I<\/text>\n<text x=\"130\" y=\"43.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Notice Inviting Tender (NIT)<\/text>\n<rect x=\"70\" y=\"63\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"63\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#1c5da6\"\/>\n<rect x=\"104\" y=\"63\" width=\"14\" height=\"36\" fill=\"#1c5da6\"\/>\n<text x=\"93\" y=\"86.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">II<\/text>\n<text x=\"130\" y=\"86.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Instructions to Bidders (ITB)<\/text>\n<rect x=\"70\" y=\"106\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\" opacity=\"0.12\" stroke=\"#2d8ecf\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"106\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#2d8ecf\"\/>\n<rect x=\"104\" y=\"106\" width=\"14\" height=\"36\" fill=\"#2d8ecf\"\/>\n<text x=\"93\" y=\"129.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">III<\/text>\n<text x=\"130\" y=\"129.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Appendix to ITB (AITB)<\/text>\n<rect x=\"70\" y=\"149\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"149\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"149\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"172.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">IV<\/text>\n<text x=\"130\" y=\"172.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">General Conditions (GCC)<\/text>\n<rect x=\"70\" y=\"192\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"192\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#c97c10\"\/>\n<rect x=\"104\" y=\"192\" width=\"14\" height=\"36\" fill=\"#c97c10\"\/>\n<text x=\"93\" y=\"215.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">V<\/text>\n<text x=\"130\" y=\"215.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Special Conditions (SCC)<\/text>\n<rect x=\"70\" y=\"235\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"235\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"235\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"258.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VI<\/text>\n<text x=\"130\" y=\"258.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Schedule of Requirements<\/text>\n<rect x=\"70\" y=\"278\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"278\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#0e8f7a\"\/>\n<rect x=\"104\" y=\"278\" width=\"14\" height=\"36\" fill=\"#0e8f7a\"\/>\n<text x=\"93\" y=\"301.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VII<\/text>\n<text x=\"130\" y=\"301.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Technical Specs & QA<\/text>\n<rect x=\"70\" y=\"321\" width=\"520\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"70\" y=\"321\" width=\"46\" height=\"36\" rx=\"8\" fill=\"#7e3eb5\"\/>\n<rect x=\"104\" y=\"321\" width=\"14\" height=\"36\" fill=\"#7e3eb5\"\/>\n<text x=\"93\" y=\"344.0\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#fff\">VIII<\/text>\n<text x=\"130\" y=\"344.0\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"700\" fill=\"#10243f\">Qualification & Evaluation<\/text>\n<\/svg>\n <div class=\"fig-cap\">ITB covers everything up to the announcement of award; <strong>GCC<\/strong> covers everything after award to contract closure. Exceptional changes go into the <strong>AITB<\/strong> and <strong>SCC<\/strong>, which supersede the standing ITB\/GCC.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-filters\">\n <span class=\"section-badge teal\">\u00a7 5.1.3<\/span>\n <h3>Three filters \u2014 eligibility, qualification & evaluation<\/h3>\n <\/div>\n\n <p>The criteria in the tender document act as <strong>three successive filters<\/strong>, each narrowing the field; no criterion that cannot be verified may be used, and any criterion not stated in the tender cannot later be applied.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How the criteria narrow the field<\/div>\n <svg viewBox=\"0 0 640 300\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Three filters narrowing bidders to the awarded bidder\">\n<polygon points=\"70,28 570,28 520,80 120,80\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"59.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">All bids<\/text>\n<polygon points=\"120,92 520,92 470,144 170,144\" fill=\"#1c5da6\" opacity=\"0.16\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"123.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#1c5da6\">Eligibility<\/text>\n<polygon points=\"170,156 470,156 415,208 225,208\" fill=\"#0e8f7a\" opacity=\"0.16\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"187.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Qualification<\/text>\n<polygon points=\"225,220 415,220 360,272 280,272\" fill=\"#7e3eb5\" opacity=\"0.16\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<text x=\"320\" y=\"251.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Evaluation<\/text>\n<rect x=\"250\" y=\"276\" width=\"140\" height=\"20\" rx=\"6\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"290\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"800\" fill=\"#ffd95a\">AWARD<\/text>\n<\/svg>\n <div class=\"fig-cap\"><strong>Eligibility<\/strong> decides who may participate; <strong>qualification<\/strong> tests capability to perform; <strong>evaluation<\/strong> picks the most advantageous bid (beyond price, criteria may include quality, life-cycle\/running cost, after-sales service and delivery period).<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">3 weeks<\/div><div class=\"st-cap\">Minimum time normally allowed for bidders to prepare<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">4 weeks<\/div><div class=\"st-cap\">Where <strong>international<\/strong> participation is contemplated<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">90 days<\/div><div class=\"st-cap\">Default <strong>bid validity<\/strong> if not otherwise specified<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">NIL = void<\/div><div class=\"st-cap\">A bid quoting NIL charges is <strong>unresponsive<\/strong><\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c5-publish\">\n <span class=\"section-badge purple\">\u00a7 5.2<\/span>\n <h3>Publication, pre-bid conference & submission<\/h3>\n <\/div>\n\n <div class=\"cat-grid\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Publish<\/div><div class=\"cat-title\">GeM & CPPP<\/div><p>NIT and the full tender document are published on <strong>GeM and GeM-CPPP<\/strong> (and the entity's own website); documents are <strong>free to download<\/strong>; time-stamped audit trails are kept. A limited-tender NIT carries a note that it is for information only and participation is by invitation.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Clarify<\/div><div class=\"cat-title\">Pre-bid conference<\/div><p>For <strong>turnkey or sophisticated, costly<\/strong> equipment, one or more pre-bid conferences (or online) clarify the tender; resulting <strong>corrigenda\/clarifications<\/strong> are issued with mandatory timelines and published.<\/p><\/div>\n <\/div>\n\n <p>Bids are uploaded by the deadline (server clock is the reference); <strong>no manual bids<\/strong> are accepted in e-procurement. A bid valid for a shorter period than required is rejected as non-responsive. Bid security (or a permitted Bid Securing Declaration) must accompany the bid.<\/p>\n\n <div class=\"section-heading-block\" id=\"c5-open\">\n <span class=\"section-badge slate\">\u00a7 5.3<\/span>\n <h3>Opening of bids<\/h3>\n <\/div>\n\n <div class=\"flow\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Open publicly<\/div><div class=\"fs-text\">The Bid Opening Committee (BOC) opens bids immediately after the deadline, before attending bidders' representatives (who carry a letter of authority).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Number & initial<\/div><div class=\"fs-text\">Each bid is serially numbered and initialled with date\/time; salient features are read out. <strong>Late bids are not considered<\/strong> (Rule 165).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Record<\/div><div class=\"fs-text\">A signed bid-opening report is prepared and handed to the Tender Committee. The BOC <strong>cannot reject<\/strong> any bid at the opening stage.<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz5\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 5 Quiz \u2014 tender documents, criteria & opening<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 5. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage5\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c5-recap\">\n <div class=\"recap-title\">⚡ Chapter 5 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Tender document contents<\/td><td><strong>Rule 168<\/strong>; eight sections (NIT\/TIS \u2192 Qualification & Evaluation)<\/td><\/tr>\n <tr><td>ITB vs GCC<\/td><td>ITB = up to award; GCC = after award; AITB\/SCC override<\/td><\/tr>\n <tr><td>Three filters<\/td><td>Eligibility \u2192 Qualification \u2192 Evaluation<\/td><\/tr>\n <tr><td>Unverifiable criteria<\/td><td>Cannot be used; criteria must be in the tender<\/td><\/tr>\n <tr><td>Minimum bid time<\/td><td><strong>3 weeks<\/strong> (national) \u00b7 <strong>4 weeks<\/strong> (international)<\/td><\/tr>\n <tr><td>Default bid validity<\/td><td><strong>90 days<\/strong><\/td><\/tr>\n <tr><td>NIL quote<\/td><td>Treated as <strong>unresponsive<\/strong><\/td><\/tr>\n <tr><td>Publication<\/td><td><strong>GeM & CPPP<\/strong>; documents free to download<\/td><\/tr>\n <tr><td>Pre-bid conference<\/td><td>For turnkey \/ sophisticated costly equipment<\/td><\/tr>\n <tr><td>Late bids<\/td><td><strong>Not considered<\/strong> (Rule 165); BOC cannot reject at opening<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch6\" data-chapter=\"6\">\n\n <div class=\"chapter-heading-block\" id=\"c6-sec\">\n <span class=\"chapter-badge\">CH 6 \u00b7 SECURITIES & PRICES<\/span>\n <h2>Forms of Securities, Prices, Payment Terms & Price Variations<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">Why securities exist (6.1)<\/div>\n <div class=\"def-text\">\n Securities protect the procuring entity at two points: a <strong>Bid Security (EMD)<\/strong> guards against a bidder withdrawing or altering its bid during validity; a <strong>Performance Security<\/strong> guards against non-performance of the contract. For goods, the need for performance security depends on the market and commercial practice. Each form of security applies over a different window of the procurement lifecycle.\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">Securities across the procurement lifecycle (6.1)<\/div>\n <svg viewBox=\"0 0 700 220\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"When each form of security applies across the procurement lifecycle\">\n<line x1=\"60\" y1=\"48\" x2=\"210\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"135.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Bidding<\/text>\n<line x1=\"60\" y1=\"42\" x2=\"60\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"210\" y1=\"48\" x2=\"330\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"270.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Award<\/text>\n<line x1=\"210\" y1=\"42\" x2=\"210\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"330\" y1=\"48\" x2=\"520\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"425.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Execution<\/text>\n<line x1=\"330\" y1=\"42\" x2=\"330\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"520\" y1=\"48\" x2=\"650\" y2=\"48\" stroke=\"#cdd8e4\" stroke-width=\"2\"\/>\n<text x=\"585.0\" y=\"38\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12\" font-weight=\"700\" fill=\"#5a6b7d\">Warranty<\/text>\n<line x1=\"520\" y1=\"42\" x2=\"520\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<line x1=\"650\" y1=\"42\" x2=\"650\" y2=\"54\" stroke=\"#94a6b8\" stroke-width=\"2\"\/>\n<rect x=\"60\" y=\"80\" width=\"210\" height=\"34\" rx=\"7\" fill=\"#1c5da6\"\/>\n<text x=\"72\" y=\"102\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Bid Security<\/text>\n<text x=\"260\" y=\"102\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">2\u20135%<\/text>\n<rect x=\"210\" y=\"128\" width=\"370\" height=\"34\" rx=\"7\" fill=\"#0e8f7a\"\/>\n<text x=\"222\" y=\"150\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Performance Security<\/text>\n<text x=\"570\" y=\"150\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">3\u20135%<\/text>\n<rect x=\"505\" y=\"176\" width=\"145\" height=\"34\" rx=\"7\" fill=\"#c97c10\"\/>\n<text x=\"517\" y=\"198\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">Warranty BG<\/text>\n<text x=\"640\" y=\"198\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12.5\" font-weight=\"800\" fill=\"#fff\">10%<\/text>\n<\/svg>\n <div class=\"fig-cap\">Bid Security may be a demand draft, banker's cheque, bank guarantee, insurance surety bond or online payment; above <strong>Rs 5 lakh<\/strong> (and for foreign GTE bidders) it must be a <strong>bank guarantee<\/strong>. In goods, retaining performance security from running bills is <strong>not<\/strong> acceptable.<\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">2\u20135%<\/div><div class=\"st-cap\"><strong>Bid Security \/ EMD<\/strong> of estimated value (Rule 170)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">3\u20135%<\/div><div class=\"st-cap\"><strong>Performance Security<\/strong> of contract value (3\u201310% for Works) \u2014 Rule 171<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">10%<\/div><div class=\"st-cap\"><strong>Warranty BG<\/strong> on capital equipment, valid 60 days beyond warranty<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">\u2264 Rs 50 L<\/div><div class=\"st-cap\"><strong>No Performance Security<\/strong> needed up to this tender value<\/div><\/div>\n <div class=\"stat-tile red\"><div class=\"st-num\">14\u201328 days<\/div><div class=\"st-cap\">Performance Security furnished after award notification<\/div><\/div>\n <div class=\"stat-tile purple\"><div class=\"st-num\">30 days<\/div><div class=\"st-cap\">Bid Security returned to unsuccessful bidders by 30th day after award<\/div><\/div>\n <\/div>\n\n <p>A <strong>Bid Securing Declaration (BSD)<\/strong> may replace bid security (with CA approval): withdrawing\/modifying the bid, or failing to furnish performance security or sign the contract, is treated as a breach of the Code of Integrity and the bidder is suspended. <strong>MSEs and DPIIT-recognised start-ups are exempt from EMD.<\/strong><\/p>\n\n <div class=\"section-heading-block\" id=\"c6-isb\">\n <span class=\"section-badge teal\">\u00a7 6.1.3–6.1.4<\/span>\n <h3>Insurance Surety Bond & the electronic bank guarantee<\/h3>\n <\/div>\n\n <p>An <strong>Insurance Surety Bond (ISB)<\/strong> is a three-cornered assurance: the <strong>principal<\/strong> (the contractor\/supplier) obtains the bond from a <strong>surety insurer<\/strong> (an insurance company), which assures performance to the <strong>beneficiary<\/strong> (the procuring entity). It is premium-based and needs no collateral; if the principal does not pay within 14 days of a valid claim, the surety pays the beneficiary within 45 calendar days.<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">The Insurance Surety Bond \u2014 a three-party assurance<\/div>\n <svg viewBox=\"0 0 640 320\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Insurance Surety Bond three-party relationship\">\n<line x1=\"320\" y1=\"47\" x2=\"422\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"422\" y1=\"224\" x2=\"218\" y2=\"224\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<line x1=\"218\" y1=\"224\" x2=\"320\" y2=\"47\" stroke=\"#cdd8e4\" stroke-width=\"2.5\"\/>\n<circle cx=\"320\" cy=\"47\" r=\"56\" fill=\"#f0f7ff\" stroke=\"#1c5da6\" stroke-width=\"2.5\"\/>\n<text x=\"320\" y=\"52\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">PRINCIPAL<\/text>\n<circle cx=\"422\" cy=\"224\" r=\"56\" fill=\"#f0fdf8\" stroke=\"#0e8f7a\" stroke-width=\"2.5\"\/>\n<text x=\"422\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">SURETY<\/text>\n<text x=\"422\" y=\"236\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">INSURER<\/text>\n<circle cx=\"218\" cy=\"224\" r=\"56\" fill=\"#f9f5ff\" stroke=\"#7e3eb5\" stroke-width=\"2.5\"\/>\n<text x=\"218\" y=\"229\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">BENEFICIARY<\/text>\n<\/svg>\n <div class=\"fig-cap\">An <strong>electronic Bank Guarantee (e-BG)<\/strong> is a dematerialised BG processed on the <strong>NeSL<\/strong> portal (24\/7); verification with NeSL is sufficient and verification with the issuing bank is not required.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c6-advance\">\n <span class=\"section-badge amber\">\u00a7 6.5<\/span>\n <h3>Advance payments<\/h3>\n <\/div>\n\n <p>Ordinarily payment follows supply; advance payment is exceptional \u2014 justified where a contractor must sink substantial funds before payment falls due, given the Government's lower cost of funds. It is anticipated at the planning stage and declared in the tender document.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">40%<\/div><div class=\"st-cap\">Ceiling of advance to a <strong>State \/ Central Government agency or PSE<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">110%<\/div><div class=\"st-cap\">Bank guarantee (or e-BG) to secure an advance \u2014 at least 110% of it<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2265 2<\/div><div class=\"st-cap\">Advance paid in <strong>at least two instalments<\/strong>; recovered against milestones<\/div><\/div>\n <\/div>\n <p>Advances are normally <strong>interest-free<\/strong> only where the tender so provided; otherwise a suitable interest rate (e.g. the GPF rate) applies. Milestone \/ stage \/ part-payments against proof of dispatch are <strong>not<\/strong> treated as advances (Rule 172(2)).<\/p>\n\n <div class=\"section-heading-block\" id=\"c6-prices\">\n <span class=\"section-badge purple\">\u00a7 6.6–6.7<\/span>\n <h3>Firm vs variable price, and exchange-rate variation<\/h3>\n <\/div>\n\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:22%\"><col style=\"width:39%\"><col style=\"width:39%\"><\/colgroup>\n <thead><tr><th>Aspect<\/th><th>Firm & Fixed Price<\/th><th>Variable Price (PVC)<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">When used<\/td><td>Deliveries up to <strong>12 months<\/strong> \u2014 the normal case.<\/td><td>Deliveries <strong>longer than 12 months<\/strong>, where input costs may move materially.<\/td><\/tr>\n <tr><td class=\"label-cell\">Mechanism<\/td><td>Price not subject to variation during the contract.<\/td><td>A <strong>Price Variation Clause<\/strong> adjusts for changes in labour, material and fuel\/power against reliable indices.<\/td><\/tr>\n <tr><td class=\"label-cell\">Safeguards<\/td><td>\u2014<\/td><td>Specify a <strong>base date<\/strong>, a <strong>time-lag<\/strong> and a <strong>ceiling<\/strong>; the entity should give its own PVC formula and base dates.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <p>For contracts with significant foreign-exchange content and a delivery period exceeding one year, an <strong>Exchange Rate Variation (ERV)<\/strong> clause works out variation from a stated base date. Imports are commonly paid through a <strong>Letter of Credit<\/strong> (governed by UCP 600).<\/p>\n\n \n <div class=\"ix\" id=\"quiz6\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 6 Quiz \u2014 securities, advances & prices<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 6. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage6\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c6-recap\">\n <div class=\"recap-title\">⚡ Chapter 6 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Bid Security \/ EMD<\/td><td><strong>2\u20135%<\/strong> of estimated value (Rule 170); valid 45 days beyond bid validity<\/td><\/tr>\n <tr><td>Bid Security form<\/td><td>> <strong>Rs 5 lakh<\/strong> \/ foreign GTE \u2192 bank guarantee<\/td><\/tr>\n <tr><td>EMD exemption<\/td><td><strong>MSEs & DPIIT start-ups<\/strong>; BSD may replace EMD<\/td><\/tr>\n <tr><td>Performance Security<\/td><td><strong>3\u20135%<\/strong> of contract value (Rule 171); 3\u201310% for Works<\/td><\/tr>\n <tr><td>No Performance Security<\/td><td>Up to a tender value of <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Perf. Security validity<\/td><td><strong>60 days<\/strong> beyond all obligations incl. warranty<\/td><\/tr>\n <tr><td>Warranty BG<\/td><td><strong>10%<\/strong> on capital equipment<\/td><\/tr>\n <tr><td>Insurance Surety Bond<\/td><td>3 parties; premium-based, no collateral<\/td><\/tr>\n <tr><td>e-BG<\/td><td>On <strong>NeSL<\/strong>; NeSL verification sufficient<\/td><\/tr>\n <tr><td>Advance to Govt\/PSE<\/td><td>Up to <strong>40%<\/strong>; secured by \u2265110% BG; \u22652 instalments<\/td><\/tr>\n <tr><td>Firm price<\/td><td>Deliveries up to <strong>12 months<\/strong><\/td><\/tr>\n <tr><td>Variable price (PVC)<\/td><td>Deliveries > 12 months; base date, time-lag, ceiling<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch7\" data-chapter=\"7\">\n\n <div class=\"chapter-heading-block\" id=\"c7-eval\">\n <span class=\"chapter-badge\">CH 7 \u00b7 EVALUATION & AWARD<\/span>\n <h2>Bid Evaluation & Award of Contract<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">The cardinal rule of evaluation (7.1)<\/div>\n <div class=\"def-text\">\n Bids are evaluated <strong>strictly on the terms of the tender document<\/strong> and the bids themselves \u2014 no hearsay, no undeclared condition, no overlooking or relaxing an essential condition. The aim is that <strong>no bidder gains undue advantage<\/strong> at the cost of others or of the procuring entity, and that a preference does not collapse the field to a single vendor.\n <\/div>\n <\/div>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">> Rs 50 L<\/div><div class=\"st-cap\">Above this, a <strong>3-member Tender Committee<\/strong> evaluates (incl. a finance member & user rep)<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 173(xxii)<\/div><div class=\"st-cap\">No TC member may <strong>report directly<\/strong> to another, where value > Rs 50 lakh<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u2260<\/div><div class=\"st-cap\">The <strong>recommending<\/strong> authority must not also be the <strong>accepting<\/strong> authority<\/div><\/div>\n <\/div>\n\n <p>Below the <strong>direct-acceptance threshold<\/strong> in the SoPP, the competent authority may evaluate directly without a Tender Committee. Above it, the Tender Committee runs the evaluation through successive gates:<\/p>\n\n <p>Evaluation runs through four gates before award: <strong>preliminary examination<\/strong> (responsiveness) \u2192 <strong>qualification<\/strong> (capability) \u2192 <strong>financial evaluation<\/strong> (determining L1) \u2192 <strong>award<\/strong>. Bids found unresponsive or unqualified drop out at the relevant gate.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">The bid-evaluation pipeline (7.3–7.6)<\/div>\n <svg viewBox=\"0 0 700 190\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Bid evaluation pipeline\">\n<defs><marker id=\"pp\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><marker id=\"dr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"10.5\" orient=\"auto\"><path d=\"M1.5 1.5 L10.5 1.5 L6 10.5 z\" fill=\"#c0392b\"\/><\/marker><\/defs>\n<rect x=\"20\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#41617f\"\/>\n<text x=\"76.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">All bids<\/text>\n<line x1=\"132\" y1=\"66.0\" x2=\"154\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"154\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#1c5da6\"\/>\n<text x=\"210.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Preliminary<\/text>\n<line x1=\"266\" y1=\"66.0\" x2=\"288\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"210.0\" y1=\"92\" x2=\"210.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"210.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unresponsive<\/text>\n<rect x=\"288\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#0e8f7a\"\/>\n<text x=\"344.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Qualification<\/text>\n<line x1=\"400\" y1=\"66.0\" x2=\"422\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<line x1=\"344.0\" y1=\"92\" x2=\"344.0\" y2=\"114\" stroke=\"#c0392b\" stroke-width=\"1.8\" stroke-dasharray=\"3 3\" marker-end=\"url(#dr)\"\/>\n<text x=\"344.0\" y=\"134\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" font-weight=\"700\" fill=\"#c0392b\">unqualified<\/text>\n<rect x=\"422\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#c97c10\"\/>\n<text x=\"478.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Financial<\/text>\n<line x1=\"534\" y1=\"66.0\" x2=\"556\" y2=\"66.0\" stroke=\"#2d8ecf\" stroke-width=\"2.4\" marker-end=\"url(#pp)\"\/>\n<rect x=\"556\" y=\"40\" width=\"112\" height=\"52\" rx=\"10\" fill=\"#7e3eb5\"\/>\n<text x=\"612.0\" y=\"71.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<\/svg>\n <div class=\"fig-cap\">A comparative statement of quotations is prepared (except up to Rs 50 lakh) and may be vetted by integrated Finance.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c7-prelim\">\n <span class=\"section-badge red\">\u00a7 7.3<\/span>\n <h3>Preliminary examination \u2014 responsive vs unresponsive<\/h3>\n <\/div>\n\n <p>Only <strong>substantively responsive<\/strong> bids \u2014 complete and conforming to the tender's essential terms without substantive deviation \u2014 proceed. Among the grounds on which a bid is ignored as <strong>unresponsive<\/strong>:<\/p>\n <ol class=\"parts-list decimal red\">\n <li>Not in the prescribed format, or <strong>unsigned<\/strong> as required.<\/li>\n <li><strong>EMD not provided<\/strong>, or exemption claimed without acceptable proof.<\/li>\n <li>Bidder <strong>not eligible<\/strong> per the eligibility criteria (including conflict of interest \/ CIPP).<\/li>\n <li>Quoted goods of another manufacturer <strong>without the required authority letter<\/strong>.<\/li>\n <li>Departs from <strong>essential requirements<\/strong> (e.g. refuses to give performance security), or has not quoted for the <strong>entire schedule<\/strong>.<\/li>\n <li><strong>Conditional, multiple or alternative<\/strong> bids where not expressly permitted; or bid validity shorter than required.<\/li>\n <\/ol>\n\n <div class=\"section-heading-block\" id=\"c7-discrep\">\n <span class=\"section-badge slate\">\u00a7 7.3.2–7.3.4<\/span>\n <h3>Resolving discrepancies & classifying deviations<\/h3>\n <\/div>\n\n <p>Where figures and words (or copies) disagree, fixed rules decide <strong>what prevails<\/strong>:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Unit vs total<\/div><div class=\"cat-title\">Unit price prevails<\/div><p>If unit price × quantity \u2260 the stated total, the <strong>unit price<\/strong> governs and the total is corrected.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Sub-total vs total<\/div><div class=\"cat-title\">Sub-totals prevail<\/div><p>If a grand total mis-adds the sub-totals, the <strong>sub-totals<\/strong> govern and the total is corrected.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Words vs figures<\/div><div class=\"cat-title\">Words prevail<\/div><p>Between an amount in words and in figures, the amount <strong>in words<\/strong> governs. Original prevails over a scanned copy.<\/p><\/div>\n <\/div>\n\n <p class=\"compare-intro\">A <strong>deviation, reservation or omission<\/strong> is either substantive (reject) or minor (may be condoned):<\/p>\n <div class=\"table-wrap\"><table class=\"compare-table wide\">\n <colgroup><col style=\"width:24%\"><col style=\"width:38%\"><col style=\"width:38%\"><\/colgroup>\n <thead><tr><th>Type<\/th><th>Substantive deviation \u2192 reject<\/th><th>Minor deviation \u2192 may accept<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"label-cell\">Test<\/td><td>Affects scope\/quality\/performance; limits the entity's rights or the bidder's obligations; or its rectification would unfairly affect other bidders' competitive position.<\/td><td>Missing pages, illegibility, fewer copies \u2014 issues with <strong>no fiscal impact<\/strong> that do not change the ranking or grant any undue advantage.<\/td><\/tr>\n <tr><td class=\"label-cell\">Action<\/td><td>Rejected as non-responsive (deviations may be accepted only in STE\/PAC, with reasons recorded).<\/td><td>Bidder asked to clarify by a target date; an evasive\/no reply makes the bid liable to rejection.<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n\n <div class=\"section-heading-block\" id=\"c7-award\">\n <span class=\"section-badge purple\">\u00a7 7.6<\/span>\n <h3>Award of contract \u2014 reasonableness, low bids & parallel contracts<\/h3>\n <\/div>\n\n <p>Every Tender Committee recommendation must declare the price <strong>reasonable<\/strong>, judged mainly against the <strong>Last Purchase Price (LPP)<\/strong> updated for quantity, delivery and terms (triangulating more than one method). An <strong>abnormally low bid (ALB)<\/strong> may be probed for the bidder's capability to deliver, and rejected if unconvincing.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile\"><div class=\"st-num\">L1<\/div><div class=\"st-cap\">Award goes to the <strong>lowest acceptable bidder<\/strong><\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">70 : 30<\/div><div class=\"st-cap\">Typical split when a <strong>parallel contract<\/strong> divides quantity between two<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">\u00b1 option<\/div><div class=\"st-cap\">A plus\/minus <strong>option clause<\/strong> adjusts quantity; never in development orders<\/div><\/div>\n <\/div>\n\n <div class=\"callout red\">\n <div class=\"callout-label\">Negotiations (Rule 173(xiv)) \u2014 handle with great care<\/div>\n <p>Price negotiation after bid opening <strong>must be severely discouraged<\/strong> and used only in exceptional, recorded circumstances. When unavoidable, it is conducted <strong>only with L1<\/strong> \u2014 in <strong>no case<\/strong>, including where cartel rates are suspected, may negotiations be extended to other bidders. A counter-offer to L1 amounts to a negotiation; the original offer stays open if the negotiation fails. If L1's price stays unreasonable, the options are re-tender or escalation to a higher level.<\/p>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz7\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 7 Quiz \u2014 evaluation, deviations & award<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 7. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage7\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c7-recap\">\n <div class=\"recap-title\">⚡ Chapter 7 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Evaluation basis<\/td><td>Strictly the tender document & the bids; no undeclared conditions<\/td><\/tr>\n <tr><td>Tender Committee<\/td><td><strong>3 members<\/strong> (incl. finance + user) above <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Independence<\/td><td><strong>Rule 173(xxii)<\/strong> \u2014 no direct-report members; recommending \u2260 accepting<\/td><\/tr>\n <tr><td>Comparative statement<\/td><td>Prepared except up to <strong>Rs 50 lakh<\/strong><\/td><\/tr>\n <tr><td>Responsive bid<\/td><td>Complete, no substantive deviation<\/td><\/tr>\n <tr><td>Unit vs total<\/td><td><strong>Unit price<\/strong> prevails<\/td><\/tr>\n <tr><td>Words vs figures<\/td><td><strong>Words<\/strong> prevail; original over scanned copy<\/td><\/tr>\n <tr><td>Deviation<\/td><td>Substantive \u2192 reject; minor \u2192 may condone (no fiscal\/ranking impact)<\/td><\/tr>\n <tr><td>Reasonableness<\/td><td>Judged mainly against the <strong>Last Purchase Price<\/strong><\/td><\/tr>\n <tr><td>Parallel contract split<\/td><td><strong>70 : 30<\/strong> (two suppliers)<\/td><\/tr>\n <tr><td>Negotiation<\/td><td>Discouraged; <strong>only with L1<\/strong> (Rule 173(xiv)); never others<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch8\" data-chapter=\"8\">\n\n <div class=\"chapter-heading-block\" id=\"c8-emerg\">\n <span class=\"chapter-badge\">CH 8 \u00b7 UNIQUE FEATURES<\/span>\n <h2>Procurements with Unique Features<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">When the standard route does not fit (8.1)<\/div>\n <div class=\"def-text\">\n Some procurements need special handling \u2014 operational emergencies, capital equipment, maintenance, buy-back of old assets, turnkey supply and print media. The guidelines already carry <strong>fast-track modes and flexibilities<\/strong>; enhanced delegations may be built into the SoPP so that an emergency does not force a departure from process.\n <\/div>\n <\/div>\n\n <p>For an operational emergency the suggested modes, fastest first, are: <strong>GeM portal<\/strong> \u2192 <strong>direct purchase without quotation<\/strong> \u2192 <strong>Purchase Committee<\/strong> \u2192 <strong>SLTE \/ LTE \/ STE with reduced bid time<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Fast-track modes in order of speed (8.1)<\/div>\n <svg viewBox=\"0 0 700 200\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Fast-track procurement modes in order of speed\">\n<defs><marker id=\"spd\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"40\" y1=\"40\" x2=\"658\" y2=\"40\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#spd)\"\/>\n<text x=\"40\" y=\"28\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#0e8f7a\">FASTEST<\/text>\n<text x=\"660\" y=\"28\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#7e3eb5\">MORE TIME<\/text>\n<rect x=\"22\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<circle cx=\"97.0\" cy=\"98\" r=\"17\" fill=\"#0e8f7a\"\/>\n<text x=\"97.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">1<\/text>\n<text x=\"97.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#0e8f7a\">GeM portal<\/text>\n<rect x=\"182\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#1c5da6\" opacity=\"0.12\" stroke=\"#1c5da6\" stroke-width=\"1.5\"\/>\n<circle cx=\"257.0\" cy=\"98\" r=\"17\" fill=\"#1c5da6\"\/>\n<text x=\"257.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">2<\/text>\n<text x=\"257.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#1c5da6\">Direct (no quote)<\/text>\n<rect x=\"342\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<circle cx=\"417.0\" cy=\"98\" r=\"17\" fill=\"#c97c10\"\/>\n<text x=\"417.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">3<\/text>\n<text x=\"417.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#c97c10\">Purchase Committee<\/text>\n<rect x=\"502\" y=\"68\" width=\"150\" height=\"96\" rx=\"11\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<circle cx=\"577.0\" cy=\"98\" r=\"17\" fill=\"#7e3eb5\"\/>\n<text x=\"577.0\" y=\"104\" text-anchor=\"middle\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#fff\">4<\/text>\n<text x=\"577.0\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#7e3eb5\">SLTE \/ LTE \/ STE<\/text>\n<\/svg>\n <div class=\"fig-cap\">In a declared crisis (disaster\/pandemic), reasonableness is judged knowing prices may be higher; Model Tender Documents and standard GCC do not apply to emergency procurement.<\/div>\n <\/div>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">Crisis dispensations (with competent-authority approval)<\/div>\n <ul class=\"note-list amber\">\n <li><span class=\"nl-tag\">SELF-DECL<\/span><span class=\"nl-text\">Eligibility\/qualification by <strong>vendor self-declaration<\/strong> (with penalties for false declarations); physical inspection replaced by self-declared quality.<\/span><\/li>\n <li><span class=\"nl-tag\">TIMELINES<\/span><span class=\"nl-text\">Bid-submission time shortened to <strong>1\u20133 days<\/strong>; bids by phone, email or in person; single-stage single-envelope; <strong>even a single offer may be accepted<\/strong> without re-tendering.<\/span><\/li>\n <li><span class=\"nl-tag\">RELAX<\/span><span class=\"nl-text\">Tender cost, <strong>EMD, performance security, LD, negotiations<\/strong> and vendor-registration fees may be relaxed or dispensed with; documents kept to the bare minimum.<\/span><\/li>\n <li><span class=\"nl-tag\">AUDIT<\/span><span class=\"nl-text\">After the crisis ends, special time-bound internal and external audits with a <strong>large sample size<\/strong>; undelivered contracts reviewed for cancellation.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c8-capital\">\n <span class=\"section-badge blue\">\u00a7 8.3–8.6<\/span>\n <h3>Capital goods, AMC, NPV & turnkey<\/h3>\n <\/div>\n\n <p>Capital goods (machinery & plant, IT systems) create lasting assets and carry a long life \u2014 so their acquisition is an <strong>investment decision<\/strong> against an item-specific budget. What you pay to buy is only the visible tip of the cost:<\/p>\n\n <p>Beneath the visible purchase price lie the larger lifetime costs: <strong>installation & commissioning<\/strong>, <strong>operation<\/strong> (power and consumables), <strong>maintenance & AMC<\/strong>, <strong>spares & training<\/strong>, and <strong>disposal<\/strong> at the end of life \u2014 together the Total Cost of Ownership.<\/p>\n <div class=\"figure plain\">\n <div class=\"figure-label\">Total Cost of Ownership \u2014 the iceberg (8.3)<\/div>\n <svg viewBox=\"0 0 640 360\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Total Cost of Ownership iceberg for capital goods\">\n<rect x=\"0\" y=\"120\" width=\"640\" height=\"240\" fill=\"#2d8ecf\" opacity=\"0.07\"\/>\n<line x1=\"0\" y1=\"120\" x2=\"640\" y2=\"120\" stroke=\"#2d8ecf\" stroke-width=\"1.5\" stroke-dasharray=\"6 5\"\/>\n<text x=\"628\" y=\"113\" text-anchor=\"end\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-style=\"italic\" fill=\"#2d8ecf\">waterline<\/text>\n<polygon points=\"320,42 248,120 392,120\" fill=\"#1c5da6\"\/>\n<text x=\"320\" y=\"92\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Purchase<\/text>\n<text x=\"320\" y=\"108\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">price<\/text>\n<polygon points=\"248,120 392,120 472,344 168,344\" fill=\"#10243f\"\/>\n<text x=\"320\" y=\"156\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Installation & commissioning<\/text>\n<text x=\"320\" y=\"188\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Operation & consumables<\/text>\n<text x=\"320\" y=\"220\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Maintenance & AMC<\/text>\n<text x=\"320\" y=\"252\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Spares & training<\/text>\n<text x=\"320\" y=\"284\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"600\" fill=\"#dfe9f5\">Disposal at end of life<\/text>\n<text x=\"320\" y=\"324\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#9ec3e6\">Total Cost of Ownership<\/text>\n<\/svg>\n <div class=\"fig-cap\">Because lifetime operating, maintenance and disposal costs can outweigh the purchase price, evaluation may build in initial spares and the <strong>NPV of AMC<\/strong> over the equipment's life.<\/div>\n <\/div>\n\n <ol class=\"parts-list decimal blue\">\n <li><strong>Alternatives to owning<\/strong> \u2014 hire, hire-purchase, lease, or buying the functionality \"as a service\" (useful where equipment, e.g. IT, ages fast).<\/li>\n <li><strong>Bundled elements<\/strong> \u2014 installation, commissioning, training, trials, warranty, post-warranty maintenance and assured spares; 2-year initial spares may be required.<\/li>\n <li><strong>Turnkey<\/strong> \u2014 where several machines\/components and third-party works act in tandem, an all-encompassing turnkey contract (manufacture \u2192 install \u2192 commission) may be better (8.6).<\/li>\n <li><strong>Pre-qualification fit<\/strong> \u2014 experience, capacity and financial strength drive quality and after-sales support, so capital goods suit pre-qualification bidding.<\/li>\n <\/ol>\n\n <div class=\"stat-strip\">\n <div class=\"stat-tile teal\"><div class=\"st-num\">Rule 169<\/div><div class=\"st-cap\"><strong>AMC<\/strong> starts only after the warranty period; OEM or a competent firm<\/div><\/div>\n <div class=\"stat-tile blue\"><div class=\"st-num\">7%<\/div><div class=\"st-cap\">Illustrative <strong>discount rate<\/strong> for NPV; computed via the Excel NPV function<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">Rule 176<\/div><div class=\"st-cap\"><strong>Buy-back<\/strong> \u2014 quote price with and without a rebate for the old item<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">L1 = discount<\/div><div class=\"st-cap\"><strong>Books\/print media<\/strong> \u2014 quoted as net discount on published price<\/div><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz8\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 8 Quiz \u2014 emergencies, capital goods & AMC<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 8. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage8\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c8-recap\">\n <div class=\"recap-title\">⚡ Chapter 8 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Fastest emergency mode<\/td><td><strong>GeM<\/strong> \u2192 Direct \u2192 Purchase Committee \u2192 SLTE\/LTE\/STE (reduced time)<\/td><\/tr>\n <tr><td>Crisis bid time<\/td><td>Shortened to <strong>1\u20133 days<\/strong>; single offer acceptable<\/td><\/tr>\n <tr><td>Crisis & MTD\/GCC<\/td><td>Model Tender Documents & standard GCC <strong>do not apply<\/strong><\/td><\/tr>\n <tr><td>Below Rs 50,000 in crisis<\/td><td>Local purchase allowed even if item is on GeM<\/td><\/tr>\n <tr><td>Buy-back<\/td><td><strong>Rule 176<\/strong>; quote with & without rebate<\/td><\/tr>\n <tr><td>Capital goods<\/td><td>Item-specific budget; an <strong>investment decision<\/strong><\/td><\/tr>\n <tr><td>TCO<\/td><td>Lifetime O&M + disposal may outweigh purchase price<\/td><\/tr>\n <tr><td>AMC<\/td><td><strong>Rule 169<\/strong>; starts after warranty; OEM or competent firm<\/td><\/tr>\n <tr><td>NPV discount rate<\/td><td><strong>7%<\/strong> (illustrative); Excel NPV function<\/td><\/tr>\n <tr><td>Books \/ print media<\/td><td>L1 = the <strong>best net discount<\/strong> on published price<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch9\" data-chapter=\"9\">\n\n <div class=\"chapter-heading-block\" id=\"c9-cm\">\n <span class=\"chapter-badge\">CH 9 \u00b7 CONTRACT MANAGEMENT<\/span>\n <h2>Contract Management<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">From signed contract to delivered goods (9.1)<\/div>\n <div class=\"def-text\">\n Contract management is the active stewardship of a contract after award \u2014 ensuring the goods are delivered to specification, on time and at the agreed cost, with risks managed to a clean closure. It runs across several control domains:\n <\/div>\n <\/div>\n\n <div class=\"figure\">\n <div class=\"figure-label\">The contract-management lifecycle<\/div>\n <svg viewBox=\"0 0 720 120\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Contract management lifecycle\">\n<defs><marker id=\"cl\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#2d8ecf\"\/><\/marker><\/defs>\n<rect x=\"18\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#41617f\"\/>\n<text x=\"68.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Award<\/text>\n<line x1=\"118\" y1=\"62.0\" x2=\"134\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"134\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"184.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Scope & Qty<\/text>\n<line x1=\"234\" y1=\"62.0\" x2=\"250\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"250\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"300.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Time<\/text>\n<line x1=\"350\" y1=\"62.0\" x2=\"366\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"366\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"416.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Quality<\/text>\n<line x1=\"466\" y1=\"62.0\" x2=\"482\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"482\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#7e3eb5\"\/>\n<text x=\"532.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Payment<\/text>\n<line x1=\"582\" y1=\"62.0\" x2=\"598\" y2=\"62.0\" stroke=\"#2d8ecf\" stroke-width=\"2.2\" marker-end=\"url(#cl)\"\/>\n<rect x=\"598\" y=\"36\" width=\"100\" height=\"52\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"648.0\" y=\"67.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13\" font-weight=\"800\" fill=\"#fff\">Closure<\/text>\n<\/svg>\n <div class=\"fig-cap\">The signed contract becomes binding the moment the award is notified; everything after that is execution monitoring.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-qty\">\n <span class=\"section-badge blue\">\u00a7 9.2<\/span>\n <h3>Scope of supply & quantity control<\/h3>\n <\/div>\n\n <p>Minor short\/excess deliveries in the <strong>final consignment<\/strong> are unavoidable and may be treated as completion within a tolerance, without a formal amendment. Where the requirement changes, a <strong>plus\/minus option clause<\/strong> adjusts quantity:<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">25\u201330%<\/div><div class=\"st-cap\">Option-clause variation should ideally <strong>not exceed<\/strong> this band<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">50%<\/div><div class=\"st-cap\">Option clause normally exercised after receipt of 50% quantity<\/div><\/div>\n <div class=\"stat-tile slate\"><div class=\"st-num\">CA approval<\/div><div class=\"st-cap\">From the authority that approved the original tender decision; none on development orders<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-time\">\n <span class=\"section-badge teal\">\u00a7 9.3<\/span>\n <h3>Time control & liquidated damages<\/h3>\n <\/div>\n\n <p>The delivery period is the <strong>\"essence of the contract\"<\/strong> and must be realistic; vague phrases like \"immediately\" are not legally binding. For staggered supply, slight monthly deviation is tolerated \u2014 <strong>\u00b15% cumulative in a year<\/strong> (\u00b15% in a month \/ \u00b17% per quarter) is not a violation and attracts no LD. Where delivery slips, <strong>Liquidated Damages<\/strong> accrue:<\/p>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">How liquidated damages accrue (9.3.9)<\/div>\n <svg viewBox=\"0 0 660 290\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Liquidated damages accrual capped at five or ten per cent\">\n<defs><marker id=\"ax\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><marker id=\"axr\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"10.5\" refY=\"6\" orient=\"auto\"><path d=\"M1 1.5 L10.5 6 L1 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"64\" y1=\"250\" x2=\"64\" y2=\"34\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#ax)\"\/>\n<line x1=\"64\" y1=\"250\" x2=\"624\" y2=\"250\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#axr)\"\/>\n<text x=\"20\" y=\"145\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 20 145)\">LD %<\/text>\n<text x=\"344.0\" y=\"282\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\">weeks of delay<\/text>\n<line x1=\"64\" y1=\"150\" x2=\"624\" y2=\"150\" stroke=\"#c97c10\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"144\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c97c10\">5% cap<\/text>\n<line x1=\"64\" y1=\"50\" x2=\"624\" y2=\"50\" stroke=\"#c0392b\" stroke-width=\"1.3\" stroke-dasharray=\"5 4\"\/>\n<text x=\"624\" y=\"44\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"12\" font-weight=\"800\" fill=\"#c0392b\">10% max<\/text>\n<path d=\"M64.0 250.0 L64.0 240.0 L101.9 240.0 L101.9 230.0 L139.7 230.0 L139.7 220.0 L177.6 220.0 L177.6 210.0 L215.4 210.0 L215.4 200.0 L253.3 200.0 L253.3 190.0 L291.1 190.0 L291.1 180.0 L329.0 180.0 L329.0 170.0 L366.9 170.0 L366.9 160.0 L404.7 160.0 L404.7 150.0 L442.6 150.0 L594.0 150.0\" fill=\"none\" stroke=\"#1c5da6\" stroke-width=\"2.8\"\/>\n<text x=\"56\" y=\"254\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">0%<\/text>\n<text x=\"56\" y=\"154\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"10\" fill=\"#5a6b7d\">5%<\/text>\n<text x=\"215.42857142857142\" y=\"200.0\" font-family=\"DM Sans,sans-serif\" font-size=\"12.5\" font-weight=\"800\" fill=\"#1c5da6\">+0.5% \/ week<\/text>\n<\/svg>\n <div class=\"fig-cap\">LD is a genuine pre-estimate of loss, recoverable from the performance\/warranty guarantee. Extension may be granted with or without a denial clause; persistent default is a breach.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-quality\">\n <span class=\"section-badge amber\">\u00a7 9.4<\/span>\n <h3>Quality assurance & inspection<\/h3>\n <\/div>\n\n <div class=\"flow amber\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Preliminary inspection<\/div><div class=\"fs-text\">Goods received on a <strong>\"subject to inspection\"<\/strong> basis; a preliminary receipt acknowledges the claimed quantity.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Detailed inspection<\/div><div class=\"fs-text\">Before acceptance, the goods are tested per the specification's inspection stages and tests; defective goods may be returned (usually within <strong>90 days<\/strong> of the original inspection report).<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">GRIR<\/div><div class=\"fs-text\">A <strong>Goods Receipt & Inspection Report (Annexure 25)<\/strong> records acceptance and is the basis for payment.<\/div><\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c9-breach\">\n <span class=\"section-badge red\">\u00a7 9.8<\/span>\n <h3>Breach, remedies & termination<\/h3>\n <\/div>\n\n <p>On default the procuring entity may, without prejudice to other rights, recover LD, encash the performance security, terminate for default, or undertake a <strong>risk purchase<\/strong> \u2014 re-procuring the goods at the defaulting contractor's risk and cost. Warranty failure attracts a penalty up to <strong>5%<\/strong> of contract value over the warranty period. Termination may also be for convenience or under force majeure.<\/p>\n\n <div class=\"section-heading-block\" id=\"c9-dispute\">\n <span class=\"section-badge purple\">\u00a7 9.9–9.10<\/span>\n <h3>Dispute resolution & closure<\/h3>\n <\/div>\n\n <p>Disputes should be settled at the lowest, least adversarial level possible, escalating only if that fails:<\/p>\n <ol class=\"parts-list decimal purple\">\n <li><strong>Amicable settlement \/ Mediation<\/strong> \u2014 guided by the <strong>Mediation Act, 2023<\/strong>; the process must normally be completed within <strong>120 days<\/strong>.<\/li>\n <li><strong>Conciliation<\/strong> \u2014 under Part III of the <strong>Arbitration & Conciliation Act, 1996<\/strong>.<\/li>\n <li><strong>Arbitration<\/strong> \u2014 under the Arbitration & Conciliation Act, 1996; the arbitrator is appointed within <strong>60 days<\/strong> of a valid demand, and the seat of arbitration is the place from which the Letter of Award \/ contract was issued.<\/li>\n <li><strong>Courts<\/strong> \u2014 only where the routes above do not resolve the dispute.<\/li>\n <\/ol>\n\n <div class=\"figure plain\">\n <div class=\"figure-label\">Escalating routes to resolve a dispute (9.9)<\/div>\n <svg viewBox=\"0 0 680 250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Dispute resolution escalation ladder\">\n<defs><marker id=\"es\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<rect x=\"46\" y=\"196\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#0e8f7a\"\/>\n<text x=\"131.0\" y=\"224.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Amicable \/ Mediation<\/text>\n<rect x=\"192\" y=\"146\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#1c5da6\"\/>\n<text x=\"277.0\" y=\"174.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Conciliation<\/text>\n<rect x=\"338\" y=\"96\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c97c10\"\/>\n<text x=\"423.0\" y=\"124.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Arbitration<\/text>\n<rect x=\"484\" y=\"46\" width=\"170\" height=\"46\" rx=\"9\" fill=\"#c0392b\"\/>\n<text x=\"569.0\" y=\"74.0\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"13.5\" font-weight=\"800\" fill=\"#fff\">Courts<\/text>\n<line x1=\"34\" y1=\"222\" x2=\"34\" y2=\"38\" stroke=\"#94a6b8\" stroke-width=\"2\" marker-end=\"url(#es)\"\/>\n<text x=\"22\" y=\"135\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 22 135)\">more formality<\/text>\n<\/svg>\n <div class=\"fig-cap\">On closure, accounts are reconciled, final payment is made and securities released; a contract is not closed merely because the final payment was made.<\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz9\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 9 Quiz \u2014 quantity, time, quality & disputes<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 9. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage9\"><\/div>\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>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c9-recap\">\n <div class=\"recap-title\">⚡ Chapter 9 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Option clause size<\/td><td>Ideally <strong>\u2264 25\u201330%<\/strong>; exercised after <strong>50%<\/strong> receipt<\/td><\/tr>\n <tr><td>Delivery period<\/td><td>The <strong>\"essence of the contract\"<\/strong><\/td><\/tr>\n <tr><td>Monthly-rate tolerance<\/td><td><strong>\u00b15%<\/strong> cumulative\/year (\u00b17%\/quarter) \u2014 no LD<\/td><\/tr>\n <tr><td>Liquidated Damages<\/td><td><strong>0.5%\/week<\/strong>; max <strong>5%<\/strong> (10% if performance allowed after inordinate delay)<\/td><\/tr>\n <tr><td>Warranty-failure penalty<\/td><td>Up to <strong>5%<\/strong> of contract value<\/td><\/tr>\n <tr><td>Inspection<\/td><td>Preliminary \u2192 detailed \u2192 <strong>GRIR (Annexure 25)<\/strong>; reject within ~90 days<\/td><\/tr>\n <tr><td>Default remedy<\/td><td><strong>Risk purchase<\/strong> at the contractor's risk & cost<\/td><\/tr>\n <tr><td>Arbitration \/ Conciliation<\/td><td><strong>Arbitration & Conciliation Act, 1996<\/strong>; seat = where LoA issued<\/td><\/tr>\n <tr><td>Mediation<\/td><td><strong>Mediation Act 2023<\/strong>; complete within 120 days<\/td><\/tr>\n <tr><td>Closure<\/td><td>Not closed merely because final payment was made<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n \n <section class=\"chapter-pane\" id=\"pane-ch10\" data-chapter=\"10\">\n\n <div class=\"chapter-heading-block\" id=\"c10-scrap\">\n <span class=\"chapter-badge\">CH 10 \u00b7 DISPOSAL<\/span>\n <h2>Disposal of Scrap Goods<\/h2>\n <\/div>\n\n <div class=\"def-card\">\n <div class=\"def-label\">What counts as scrap (10.1)<\/div>\n <div class=\"def-text\">\n Goods that cannot be usefully repaired or renovated are <strong>\"scrap\"<\/strong>. Occasionally scrap includes second-hand, well-kept or even new goods that are <strong>surplus<\/strong> to the organisation's need and may fetch a fair price. Disposal is, in effect, the mirror image of procurement: the buyer becomes the seller, and the <strong>highest bidder (H1)<\/strong> wins.\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-survey\">\n <span class=\"section-badge blue\">\u00a7 10.2–10.3<\/span>\n <h3>Classification & survey<\/h3>\n <\/div>\n\n <p>Items are sorted into <strong>trade groups<\/strong> (e.g. for melting, re-rolling) \u2014 segregated and sorted scrap fetches better value and helps fix reserve prices. Before anything is sold as scrap, a <strong>Survey Committee<\/strong> appointed by the Head of Office must declare it so, recording why it is surplus, obsolete or unserviceable.<\/p>\n <div class=\"stat-strip\">\n <div class=\"stat-tile blue\"><div class=\"st-num\">Survey Cttee<\/div><div class=\"st-cap\">Declares items scrap after inspection; SoPP lays down the competent authority<\/div><\/div>\n <div class=\"stat-tile teal\"><div class=\"st-num\">Book value<\/div><div class=\"st-cap\">Assessed value basis; or <strong>5%<\/strong> where book value is negligible\/unavailable<\/div><\/div>\n <div class=\"stat-tile amber\"><div class=\"st-num\">Reserve price<\/div><div class=\"st-cap\">Recorded in a <strong>sealed, page-numbered register<\/strong> before disposal; never sold below it<\/div><\/div>\n <\/div>\n\n <p>The mode of disposal is driven by value: <strong>petty sale<\/strong> to local dealers for small\/petty scrap; a <strong>limited tender<\/strong> to local scrap dealers for <strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong>; and <strong>e-Auction<\/strong> (preferred, via NIC \/ MSTC \/ Railways) for scrap <strong>above Rs 4 lakh<\/strong>.<\/p>\n <div class=\"figure\">\n <div class=\"figure-label\">Modes of disposal by scrap value (10.4)<\/div>\n <svg viewBox=\"0 0 680 280\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Disposal modes by scrap value\">\n<defs><marker id=\"up2\" markerUnits=\"userSpaceOnUse\" markerWidth=\"12\" markerHeight=\"12\" refX=\"6\" refY=\"1.5\" orient=\"auto\"><path d=\"M1.5 10.5 L6 1.5 L10.5 10.5 z\" fill=\"#94a6b8\"\/><\/marker><\/defs>\n<line x1=\"42\" y1=\"256\" x2=\"42\" y2=\"22\" stroke=\"#94a6b8\" stroke-width=\"2.5\" marker-end=\"url(#up2)\"\/>\n<text x=\"24\" y=\"140\" text-anchor=\"middle\" font-family=\"DM Sans,sans-serif\" font-size=\"11\" font-weight=\"700\" fill=\"#94a6b8\" transform=\"rotate(-90 24 140)\">higher scrap value<\/text>\n<rect x=\"62\" y=\"30\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#7e3eb5\" opacity=\"0.12\" stroke=\"#7e3eb5\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"30\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#7e3eb5\"\/>\n<text x=\"84\" y=\"60\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#7e3eb5\">Above Rs 4 lakh<\/text>\n<text x=\"84\" y=\"82\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">e-Auction (preferred)<\/text>\n<text x=\"644\" y=\"60\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#7e3eb5\">NIC \u00b7 MSTC<\/text>\n<rect x=\"62\" y=\"110\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#c97c10\" opacity=\"0.12\" stroke=\"#c97c10\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"110\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#c97c10\"\/>\n<text x=\"84\" y=\"140\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#c97c10\">Rs 15k \u2013 Rs 4 lakh<\/text>\n<text x=\"84\" y=\"162\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Limited Tender<\/text>\n<text x=\"644\" y=\"140\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#c97c10\">local dealers<\/text>\n<rect x=\"62\" y=\"190\" width=\"598\" height=\"70\" rx=\"10\" fill=\"#0e8f7a\" opacity=\"0.12\" stroke=\"#0e8f7a\" stroke-width=\"1.5\"\/>\n<rect x=\"62\" y=\"190\" width=\"6\" height=\"70\" rx=\"3\" fill=\"#0e8f7a\"\/>\n<text x=\"84\" y=\"220\" font-family=\"JetBrains Mono,monospace\" font-size=\"15\" font-weight=\"800\" fill=\"#0e8f7a\">Small \/ petty<\/text>\n<text x=\"84\" y=\"242\" font-family=\"DM Sans,sans-serif\" font-size=\"14\" font-weight=\"700\" fill=\"#10243f\">Petty sale (quotation)<\/text>\n<text x=\"644\" y=\"220\" text-anchor=\"end\" font-family=\"JetBrains Mono,monospace\" font-size=\"11\" font-weight=\"700\" fill=\"#0e8f7a\">local dealers<\/text>\n<\/svg>\n <div class=\"fig-cap\">For transfers to other Government departments \/ fit-to-use overstocks, the rate is <strong>book value + 20% overheads + 7.5% freight<\/strong>. Security-risk scrap (stamps, negotiable instruments) needs special, safe handling.<\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"c10-process\">\n <span class=\"section-badge purple\">\u00a7 10.5–10.10<\/span>\n <h3>The disposal workflow<\/h3>\n <\/div>\n\n <div class=\"flow purple\">\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 1<\/div><div class=\"fs-title\">Survey & declare<\/div><div class=\"fs-text\">Survey Committee inspects and declares the item scrap\/surplus, recording reasons.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 2<\/div><div class=\"fs-title\">Segregate & price<\/div><div class=\"fs-text\">Sort into trade groups; secure valuable non-ferrous metals; fix and seal the <strong>reserve price<\/strong>.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 3<\/div><div class=\"fs-title\">Choose mode<\/div><div class=\"fs-text\">Petty sale, LTE or <strong>e-auction<\/strong> by value \u2014 e-auction preferred for higher-value scrap.<\/div><\/div>\n <div class=\"flow-step\"><div class=\"fs-num\">STEP 4<\/div><div class=\"fs-title\">Award to H1 & deliver<\/div><div class=\"fs-text\">Sale to the highest bidder at\/above reserve price; material delivered after payment.<\/div><\/div>\n <\/div>\n\n <p>Disposal must comply with environmental law depending on the material:<\/p>\n <div class=\"cat-grid three\">\n <div class=\"cat-card a\"><div class=\"cat-label\">Power cells<\/div><div class=\"cat-title\">Batteries Rules<\/div><p>The Batteries (Management & Handling) Rules, <strong>2001<\/strong> (as amended) govern battery scrap.<\/p><\/div>\n <div class=\"cat-card b\"><div class=\"cat-label\">Hazardous<\/div><div class=\"cat-title\">Hazardous Waste Rules<\/div><p>The Hazardous & Other Wastes (Management & Transboundary Movement) Rules govern hazardous scrap.<\/p><\/div>\n <div class=\"cat-card c\"><div class=\"cat-label\">Electronics<\/div><div class=\"cat-title\">e-Waste Rules<\/div><p>The e-Waste (Management) Rules, <strong>2016<\/strong> (as amended) govern electronic scrap.<\/p><\/div>\n <\/div>\n\n \n <div class=\"ix\" id=\"quiz10\">\n <div class=\"ix-head\"><span class=\"ix-chip\">Self-test<\/span><h4>Chapter 10 Quiz \u2014 survey, modes & reserve price<\/h4><\/div>\n <div class=\"ix-body\">\n <p class=\"ix-help\">Eight questions from Chapter 10. Pick an answer to lock it; the explanation appears below.<\/p>\n <div id=\"quizStage10\"><\/div>\n <div class=\"quiz-foot\"><span class=\"quiz-score\" id=\"quizScore10\">Score 0 \/ 0<\/span><button class=\"quiz-btn\" id=\"quizNext10\" disabled>Next →<\/button><\/div>\n <\/div>\n <\/div>\n\n <div class=\"recap\" id=\"c10-recap\">\n <div class=\"recap-title\">⚡ Chapter 10 \u2014 Quick Recap<\/div>\n <table>\n <thead><tr><th>Concept<\/th><th>Key Fact<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>Scrap<\/td><td>Goods not usefully repairable; may include surplus\/obsolete<\/td><\/tr>\n <tr><td>Disposal vs procurement<\/td><td>Mirror image \u2014 <strong>highest bidder (H1)<\/strong> wins<\/td><\/tr>\n <tr><td>Declaration<\/td><td>By a <strong>Survey Committee<\/strong>; reasons recorded<\/td><\/tr>\n <tr><td>Valuation basis<\/td><td>Book value, or <strong>5%<\/strong> if negligible\/unavailable<\/td><\/tr>\n <tr><td>Reserve price<\/td><td>Sealed, page-numbered register; never sold below it<\/td><\/tr>\n <tr><td>Petty sales<\/td><td>Small\/petty scrap to local dealers on quotation<\/td><\/tr>\n <tr><td>LTE mode<\/td><td><strong>Rs 15,000 \u2013 Rs 4 lakh<\/strong> \u2014 limited tender to local dealers<\/td><\/tr>\n <tr><td>e-Auction mode<\/td><td>Above <strong>Rs 4 lakh<\/strong> \u2014 preferred; NIC \/ MSTC \/ Railways<\/td><\/tr>\n <tr><td>Inter-dept transfer rate<\/td><td>Book value + <strong>20%<\/strong> overheads + <strong>7.5%<\/strong> freight<\/td><\/tr>\n <tr><td>Compliance<\/td><td>Batteries Rules 2001 \u00b7 Hazardous Waste Rules \u00b7 e-Waste Rules 2016<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <\/section>\n <\/main>\n<\/div>\n<script>\n\/* \u2500\u2500\u2500\u2500\u2500 Chapter (tab) switching + sidebar navigation \u2500\u2500\u2500\u2500\u2500 *\/\n(function(){\n var details = Array.prototype.slice.call(document.querySelectorAll('details.toc-chapter'));\n var panes = Array.prototype.slice.call(document.querySelectorAll('section.chapter-pane'));\n\n function showChapter(n, scrollTop){\n panes.forEach(function(p){ p.classList.toggle('active', p.getAttribute('data-chapter') === String(n)); });\n if (scrollTop){\n var pane = document.getElementById('pane-ch'+n);\n if (pane) pane.scrollIntoView({behavior:'smooth', block:'start'});\n }\n }\n\n details.forEach(function(d){\n d.addEventListener('toggle', function(){\n if (d.open){\n details.forEach(function(o){ if (o !== d) o.open = false; });\n showChapter(d.getAttribute('data-chapter'), false);\n }\n });\n });\n\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a[href^=\"#\"]')).forEach(function(a){\n a.addEventListener('click', function(e){\n var id = a.getAttribute('href').slice(1);\n var target = document.getElementById(id);\n if (!target) return;\n e.preventDefault();\n var pane = target.closest('.chapter-pane');\n if (pane){\n var ch = pane.getAttribute('data-chapter');\n var d = document.querySelector('details.toc-chapter[data-chapter=\"'+ch+'\"]');\n if (d && !d.open) d.open = true;\n showChapter(ch, false);\n }\n Array.prototype.slice.call(document.querySelectorAll('.toc-sub-list a.active')).forEach(function(x){ x.classList.remove('active'); });\n a.classList.add('active');\n requestAnimationFrame(function(){ target.scrollIntoView({behavior:'smooth', block:'start'}); });\n });\n });\n})();\n\n\/* \u2500\u2500\u2500\u2500\u2500 Quiz factory \u2500\u2500\u2500\u2500\u2500 *\/\nfunction buildQuiz(stageId, scoreId, nextId, questions){\n var stage = document.getElementById(stageId);\n var scoreEl = document.getElementById(scoreId);\n var nextBtn = document.getElementById(nextId);\n if (!stage) return;\n var idx = 0, score = 0, answered = 0;\n\n function render(){\n var q = questions[idx];\n var html = '<div class=\"quiz-q\"><span class=\"q-tag\">Q'+(idx+1)+'<\/span><span>'+q.q+'<\/span><\/div><div class=\"quiz-opts\">';\n q.opts.forEach(function(opt, i){ html += '<button class=\"quiz-opt\" data-i=\"'+i+'\">'+opt+'<\/button>'; });\n html += '<\/div><div class=\"quiz-fb\"><\/div>';\n stage.innerHTML = html;\n var fb = stage.querySelector('.quiz-fb');\n var opts = Array.prototype.slice.call(stage.querySelectorAll('.quiz-opt'));\n opts.forEach(function(b){\n b.addEventListener('click', function(){\n var chosen = parseInt(b.getAttribute('data-i'), 10);\n opts.forEach(function(x){ x.classList.add('lock'); });\n opts[q.a].classList.add('correct');\n if (chosen === q.a){ score++; }\n else { b.classList.add('wrong'); }\n answered++;\n scoreEl.textContent = 'Score '+score+' \/ '+answered;\n fb.innerHTML = (chosen === q.a ? '<strong>Correct.<\/strong> ' : '<strong>Not quite.<\/strong> ') + q.fb;\n nextBtn.disabled = (idx >= questions.length - 1);\n if (idx >= questions.length - 1){ nextBtn.textContent = 'Done \\u2713'; }\n });\n });\n }\n nextBtn.addEventListener('click', function(){\n if (idx < questions.length - 1){ idx++; nextBtn.disabled = true; render(); }\n });\n render();\n}\n\nbuildQuiz('quizStage1','quizScore1','quizNext1',[\n {q:'At the apex of the statutory framework governing public procurement is \\u2014', opts:['Article 112','Article 266','Article 299','Article 280'], a:2, fb:'Article 299 of the Constitution requires that contracts binding on the Government be executed in writing by officers specifically authorised to do so.'},\n {q:'In the Central Government, the comprehensive rules for public procurement are mainly found in \\u2014', opts:['A dedicated Public Procurement Act','GFR 2017 (chapters 6 to 9) and the DFPR','The Sale of Goods Act, 1930','The Companies Act, 2013'], a:1, fb:'There is no exclusive procurement law; the rules sit in the General Financial Rules, 2017 (especially chapters 6 to 9), the DFPR and various Government orders.'},\n {q:'Procurement of common-use goods and services that are available on GeM is governed by \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 153 of GFR 2017','Rule 173 of GFR 2017'], a:1, fb:'Rule 149 of GFR 2017 makes procurement through the Government e-Marketplace (GeM) mandatory for common-use goods and services.'},\n {q:'Which of the following is NOT one of the Five R\\u2019s of Procurement?', opts:['Right Quality','Right Price','Right Source','Right Profit'], a:3, fb:'The Five R\\u2019s are Right Quality, Right Quantity, Right Price, Right Time & Place, and Right Source \\u2014 each aimed at the optimal balance, not the cheapest or most.'},\n {q:'The Standards (Canons) of Financial Propriety are set out in which rule of the GFR 2017?', opts:['Rule 21','Rule 144','Rule 149','Rule 153'], a:0, fb:'Rule 21 lays down the canons of financial propriety, including the test that an officer exercise the same vigilance over public money as a person of ordinary prudence would over their own.'},\n {q:'Under the Make-in-India (MII) Order 2017, the minimum local content to be a \\u2018Class-I local supplier\\u2019 is \\u2014', opts:['20 per cent','40 per cent','50 per cent','75 per cent'], a:2, fb:'A Class-I local supplier needs minimum 50% local content; a Class-II local supplier needs minimum 20%. The margin of purchase preference is 20%.'},\n {q:'Central Ministries\/Departments\/PSUs must procure a minimum percentage of their annual value of goods and services from Micro and Small Enterprises equal to \\u2014', opts:['10 per cent','20 per cent','25 per cent','33 per cent'], a:2, fb:'The Public Procurement Policy for MSEs sets a minimum 25% target, with sub-targets of 4% for SC\/ST-owned and 3% for women-owned MSEs.'},\n {q:'The Comptroller and Auditor General of India is established under which Articles of the Constitution?', opts:['Articles 112\\u2013114','Articles 148\\u2013151','Articles 149\\u2013151','Articles 266\\u2013267'], a:2, fb:'The CAG, the Supreme Audit Institution of India, is established under Articles 149\\u2013151 of the Constitution.'},\n {q:'A procurement valued below which threshold is exempt from the Make-in-India Order 2017?', opts:['Rs. 1 lakh','Rs. 5 lakh','Rs. 50 lakh','Rs. 1 crore'], a:1, fb:'Procurements with an estimated value below Rs. 5 lakh are exempt from the MII Order, provided procurement is not split to avoid the Order.'}\n]);\n\nbuildQuiz('quizStage2','quizScore2','quizNext2',[\n {q:'Procurement of goods should normally be initiated only on the basis of \\u2014', opts:['A market survey','An indent from the user Department','A budgetary quote','A CAG recommendation'], a:1, fb:'Procurement should be initiated only on an indent (Purchase Requisition) from the user Department, which first determines the need and anticipated quantum.'},\n {q:'Where a brand or trade name is unavoidable in describing a requirement, it should be followed by the words \\u2014', opts:['\\u201Cor better\\u201D','\\u201Cor substantially equivalent\\u201D','\\u201Cor approved equal\\u201D','\\u201Cas per sample\\u201D'], a:1, fb:'Except for proprietary single-source purchase, brand names should be avoided; where unavoidable, the description must add \\u201Cor substantially equivalent.\\u201D'},\n {q:'For obtaining budgetary quotes to estimate cost, the ideal number of quotes to be sought is \\u2014', opts:['One','Two','Three','Five'], a:2, fb:'Ideally three budgetary quotes should be obtained (within about 10\\u201321 days, with two extensions allowed); if fewer are received, the estimate is framed on the average of those received.'},\n {q:'Technical specifications should normally be based on \\u2014', opts:['International standards only','Bureau of Indian Standards (BIS) standards where they exist','The supplier\\u2019s catalogue','The cheapest available product'], a:1, fb:'Specifications should be based on recognised national standards (BIS) where they exist, with preference for BIS-marked goods; international standards apply only in their absence, with reasons recorded.'},\n {q:'The Bureau of Energy Efficiency (BEE) was established under the Energy Conservation Act, 2001, on \\u2014', opts:['1 January 2000','1 March 2002','1 April 2006','1 January 2015'], a:1, fb:'The BEE was set up on 1 March 2002; its Standards & Labelling Programme (2006) rates appliances by stars \\u2014 the higher the stars, the more efficient.'},\n {q:'Before granting administrative\/budgetary approval of an indent, it must first be certified that \\u2014', opts:['Three bids have been received','Budget funds are available and liability is noted','The CAG has been consulted','The item carries a BIS mark'], a:1, fb:'Approval of an indent requires certification that funds are available in the budget and that liability for the indent is noted against the total available budget.'},\n {q:'The Annual Procurement Plan published on GeM\/CPPP \\u2014', opts:['Initiates the procurement process','Confers a right on bidders to a tender','Does not amount to initiation of procurement','Replaces the indent'], a:2, fb:'Under Rule 144(x) of GFR 2017, publication of the Annual Procurement Plan is expressly not an initiation of procurement and casts no obligation or right regarding any tender.'},\n {q:'A procuring authority should normally neither package nor split its procurement to limit competition or avoid higher sanction, under \\u2014', opts:['Rule 144 of GFR 2017','Rule 149 of GFR 2017','Rule 157 of GFR 2017','Rule 173 of GFR 2017'], a:2, fb:'Rule 157 of GFR 2017 bars packaging\/splitting to limit competition or avoid sanction, though division is allowed for recorded reasons such as efficiency, economy or MSE access.'},\n {q:'The stage at which cartel formation can be most effectively addressed is \\u2014', opts:['Bid opening','Contract management','Need assessment and procurement planning','Disposal of scrap'], a:2, fb:'Need assessment and procurement planning is the main stage to mitigate cartels \\u2014 by widening the supplier base and varying the mode, quantity and qualification criteria.'}\n]);\n\nbuildQuiz('quizStage3','quizScore3','quizNext3',[\n {q:'The Code of Integrity for Public Procurement is laid down in which rule of the GFR 2017?', opts:['Rule 144','Rule 150','Rule 175','Rule 161'], a:2, fb:'Rule 175 of GFR 2017 sets out the Code of Integrity, which both procuring officials and bidders\/suppliers must observe.'},\n {q:'Collusion or bid-rigging between bidders falls under which prohibited practice?', opts:['Corrupt practice','Anti-competitive practice','Coercive practice','Obstructive practice'], a:1, fb:'Collusion, bid-rigging or any arrangement under the Competition Act, 2002 is an \\u201Canti-competitive practice\\u201D \\u2014 one of the seven prohibited practices.'},\n {q:'Under the Code of Integrity, a bidder must disclose previous transgressions of the code over the last \\u2014', opts:['One year','Two years','Three years','Five years'], a:2, fb:'Bidders must declare any transgression of the code with any entity in any country during the last three years, or any debarment by another procuring entity.'},\n {q:'As guidance, the Integrity Pact threshold should cover what share of a Ministry\\u2019s annual procurement by value?', opts:['25\\u201340%','50\\u201360%','80\\u201390%','100%'], a:2, fb:'The threshold should be set so the Integrity Pact covers the bulk \\u2014 about 80 to 90 per cent by value \\u2014 of annual procurement expenditure.'},\n {q:'A bidder aggrieved by a decision of the procuring entity may seek review within \\u2014', opts:['3 days','5 days','15 days','30 days'], a:1, fb:'An affected bidder may apply for review within five days of the decision; a post-award grievance must be redressed and closed within 30 days.'},\n {q:'In the registration grading, Grade-A covers orders valued at \\u2014', opts:['Rs 1 lakh and above','Rs 5 lakh and above','Rs 25 lakh and above','Rs 50 lakh and above'], a:2, fb:'Grade-A covers orders of Rs 25 lakh and above; Grade-B Rs 5\\u201325 lakh; Grade-C Rs 1\\u20135 lakh. Registration is governed by Rule 150.'},\n {q:'A bidder convicted under the Prevention of Corruption Act may be debarred under Rule 151 for a period not exceeding \\u2014', opts:['Six months','One year','Two years','Three years'], a:3, fb:'Under Rule 151, a bidder convicted under the PC Act (or IPC for loss of life\/property in a procurement contract) may be debarred for up to three years.'},\n {q:'Debarment of a firm is best treated as \\u2014', opts:['A vigilance function','An executive function','A judicial function','An audit function'], a:1, fb:'Debarment is an executive function and should not be allocated to the Vigilance unit; it follows a reasonable opportunity to represent.'}\n]);\n\nbuildQuiz('quizStage4','quizScore4','quizNext4',[\n {q:'The mode of procurement primarily addresses which of the Five R\\u2019s?', opts:['Right Quality','Right Price','Right Source','Right Time'], a:2, fb:'The mode of procurement varies the width and specificity of the bidder catchment \\u2014 it is the \\u201CRight Source\\u201D of the Five R\\u2019s.'},\n {q:'The default mode of procurement, used for requirements above Rs 50 lakh, is \\u2014', opts:['Limited Tender Enquiry','Open Tender Enquiry','Single Tender Enquiry','Direct purchase'], a:1, fb:'Open Tender Enquiry (OTE) is the default mode (Rule 161), used above Rs 50 lakh; it seeks the widest competition and gives the best value for money.'},\n {q:'A Global Tender Enquiry shall generally NOT be invited up to a value of \\u2014', opts:['Rs 50 lakh','Rs 5 crore','Rs 50 crore','Rs 200 crore'], a:3, fb:'No GTE is invited up to Rs 200 crore (or any limit prescribed by DoE) without the approval of the competent authority designated by the Department of Expenditure.'},\n {q:'A distinctive feature of a Rate Contract \/ Framework Agreement is that \\u2014', opts:['A fixed quantity is guaranteed','No quantity is mentioned or guaranteed','It is always a single-source contract','It cannot be cancelled'], a:1, fb:'In a Rate Contract no quantity is mentioned, nor is any minimum drawable quantity guaranteed; supply orders are placed against the agreed rate during its validity.'},\n {q:'A Limited Tender Enquiry (LTE) may be used for procurements up to \\u2014', opts:['Rs 5 lakh','Rs 25 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'LTE (Rule 162) is used up to Rs 50 lakh and must be sent to more than three registered vendors; above Rs 50 lakh, a Special LTE is allowed only in exceptional circumstances.'},\n {q:'Direct procurement without quotation (petty purchase) is permitted up to \\u2014', opts:['Rs 25,000 per case','Rs 50,000 per case','Rs 1 lakh per case','Rs 5 lakh per case'], a:1, fb:'Direct purchase without quotation is allowed up to Rs 50,000 per case (Rule 154) \\u2014 enhanced to Rs 1 lakh for scientific Ministries\/Departments.'},\n {q:'Procurement by a local Purchase Committee of three members applies to values \\u2014', opts:['Up to Rs 50,000','Rs 50,000 to Rs 5 lakh','Rs 5 lakh to Rs 25 lakh','Above Rs 50 lakh'], a:1, fb:'A three-member Purchase Committee (Rule 155) handles procurements above Rs 50,000 and up to Rs 5 lakh (Rs 10 lakh for scientific bodies).'},\n {q:'On GeM, a direct purchase above Rs 50,000 and up to Rs 10 lakh must be from the lowest-priced seller among \\u2014', opts:['Any single seller','At least two manufacturers','At least three different manufacturers','At least five sellers'], a:2, fb:'Between Rs 50,000 and Rs 10 lakh, the buyer purchases from the GeM seller with the lowest price among at least three different manufacturers; above Rs 10 lakh, bidding or reverse auction is used.'}\n]);\n\n\nbuildQuiz('quizStage5','quizScore5','quizNext5',[\n {q:'The contents of a tender document are governed by which rule of the GFR 2017?', opts:['Rule 161','Rule 165','Rule 168','Rule 173'], a:2, fb:'Rule 168 lays down the contents of the tender document \\u2014 the eight ordered sections from the NIT to the Qualification & Evaluation Criteria.'},\n {q:'In a tender document, conditions that apply only after the announcement of the award are placed in the \\u2014', opts:['Instructions to Bidders (ITB)','General Conditions of Contract (GCC)','Notice Inviting Tender (NIT)','Schedule of Requirements'], a:1, fb:'The GCC covers everything from the announcement of award to contract closure; the ITB covers everything up to the award.'},\n {q:'The three successive filters applied to bidders, in order, are \\u2014', opts:['Evaluation \\u2192 Eligibility \\u2192 Qualification','Eligibility \\u2192 Qualification \\u2192 Evaluation','Qualification \\u2192 Eligibility \\u2192 Evaluation','Eligibility \\u2192 Evaluation \\u2192 Qualification'], a:1, fb:'Eligibility decides who may participate, qualification tests capability to perform, and evaluation selects the most advantageous bid.'},\n {q:'If the tender document does not specify a bid-validity period, the default is \\u2014', opts:['30 days','45 days','60 days','90 days'], a:3, fb:'A bid remains valid for 90 days if no period is specified; a bid valid for a shorter period than required is rejected as non-responsive.'},\n {q:'The minimum time normally allowed to bidders rises to four weeks when \\u2014', opts:['The value exceeds Rs 50 lakh','International participation is contemplated','The mode is a limited tender','An Integrity Pact applies'], a:1, fb:'At least three weeks are normally allowed, rising to not less than four weeks where international participation is contemplated.'},\n {q:'A bid that quotes NIL charges\/consideration shall be \\u2014', opts:['Treated as the lowest bid','Treated as unresponsive','Accepted with a clarification','Referred to the Tender Committee'], a:1, fb:'The tender document must provide that a NIL quote is treated as unresponsive and not considered.'},\n {q:'Late bids received after the deadline for receipt of bids are governed by which rule, under which they are not considered?', opts:['Rule 161','Rule 165','Rule 170','Rule 173'], a:1, fb:'Under Rule 165, bids received after the specified deadline are not considered; the Bid Opening Committee has no authority to reject a bid at the opening stage.'},\n {q:'A pre-bid conference is most appropriate for \\u2014', opts:['All petty purchases','Routine off-the-shelf goods','Turnkey or sophisticated, costly equipment','Rate contracts'], a:2, fb:'Pre-bid conferences are provided mainly for turnkey contracts and sophisticated, costly equipment, to clarify the tender before bids are submitted.'}\n]);\n\nbuildQuiz('quizStage6','quizScore6','quizNext6',[\n {q:'Bid Security (EMD) should ordinarily range between \\u2014', opts:['1% and 2% of estimated value','2% and 5% of estimated value','5% and 10% of estimated value','3% and 10% of estimated value'], a:1, fb:'Under Rule 170, Bid Security ordinarily ranges between 2% and 5% of the estimated value of the goods, rounded to the nearest thousand.'},\n {q:'Which bidders are exempt from payment of EMD?', opts:['All registered bidders','MSEs and DPIIT-recognised start-ups','Only CPSEs','Foreign bidders in GTE'], a:1, fb:'Micro & Small Enterprises and DPIIT-recognised start-ups are exempt from EMD; in place of bid security, a Bid Securing Declaration may also be permitted.'},\n {q:'Performance Security for a goods contract is normally \\u2014', opts:['1\\u20132% of contract value','2\\u20135% of contract value','3\\u20135% of contract value','10\\u201315% of contract value'], a:2, fb:'Performance Security is 3\\u20135% of contract value for goods (3\\u201310% for Works), under Rule 171.'},\n {q:'Submission of Performance Security is not necessary for a tender value up to \\u2014', opts:['Rs 5 lakh','Rs 10 lakh','Rs 50 lakh','Rs 1 crore'], a:2, fb:'Performance Security is not necessary for a tender value up to Rs 50 lakh; it is otherwise valid for 60 days beyond all contractual obligations.'},\n {q:'An Insurance Surety Bond is distinctive because it \\u2014', opts:['Requires full collateral with the surety','Is a premium-based product needing no collateral','Is issued only by the RBI','Is valid only abroad'], a:1, fb:'Unlike a bank guarantee, an Insurance Surety Bond is a premium-based, three-party product that does not require the principal to deposit collateral.'},\n {q:'The quantum of advance payment to a State\/Central Government agency or PSE should generally not exceed \\u2014', opts:['15%','30%','40%','50%'], a:2, fb:'Advance to a State\/Central Government agency or PSE should not generally exceed 40% of the contract value, secured by a bank guarantee of at least 110% of the advance.'},\n {q:'A contract with deliveries longer than 12 months should normally carry a \\u2014', opts:['Firm and fixed price','Price Variation Clause','NIL price','Single source price'], a:1, fb:'Deliveries up to 12 months are normally on a firm and fixed price; deliveries longer than 12 months use a Price Variation Clause with a base date, time-lag and ceiling.'},\n {q:'An electronic Bank Guarantee (e-BG) is processed on the portal of \\u2014', opts:['GeM','CPPP','NeSL','RBI'], a:2, fb:'An e-BG is a dematerialised bank guarantee processed on the NeSL portal; verification with NeSL is sufficient, without verifying with the issuing bank.'}\n]);\n\nbuildQuiz('quizStage7','quizScore7','quizNext7',[\n {q:'For procurements with financial implications above Rs 50 lakh, evaluation is normally done by a Tender Committee of \\u2014', opts:['One member','Two members','Three members','Five members'], a:2, fb:'A Tender Committee above Rs 50 lakh normally comprises three members, including a finance member nominated by the FA and a user representative.'},\n {q:'Rule 173(xxii) of GFR 2017 requires that, above Rs 50 lakh, no Tender Committee member \\u2014', opts:['Is from the finance wing','Reports directly to another member','Is a technical expert','Attends the bid opening'], a:1, fb:'Rule 173(xxii) bars a member who reports directly to another member, to preserve independence; the recommending authority must also not be the accepting authority.'},\n {q:'Where unit price \\u00d7 quantity does not equal the stated total, which prevails?', opts:['The total price','The unit price','The higher of the two','The bidder is asked to choose'], a:1, fb:'The unit price prevails and the total is corrected; sub-totals prevail over a mis-added grand total; and words prevail over figures.'},\n {q:'Between an amount written in words and the same amount in figures, the binding amount is \\u2014', opts:['The figures','The words','The lower amount','The higher amount'], a:1, fb:'The amount in words prevails over the amount in figures; likewise the original copy prevails over a scanned copy.'},\n {q:'A deviation that affects the scope, quality or performance of the product is \\u2014', opts:['A minor deviation that may be condoned','A substantive deviation leading to rejection','Always ignored','Only relevant in Works'], a:1, fb:'Such a deviation is substantive and the bid is rejected as non-responsive; minor deviations with no fiscal or ranking impact may be condoned after clarification.'},\n {q:'The reasonableness of the recommended price is judged mainly against the \\u2014', opts:['Highest bid received','Last Purchase Price','Bidder\\u2019s catalogue','Budget estimate alone'], a:1, fb:'Reasonableness is judged mainly against the Last Purchase Price, updated for quantity, delivery and terms, triangulating more than one method of estimation.'},\n {q:'When a parallel contract splits the quantity between two suppliers, the typical ratio is \\u2014', opts:['50:50','60:40','70:30','80:20'], a:2, fb:'A split between two suppliers is typically in the ratio 70:30, with L1 awarded at least the prescribed share.'},\n {q:'Price negotiation after bid opening, where unavoidable, must be conducted \\u2014', opts:['With all bidders','Only with L1','With L1 and L2','With the lowest three bidders'], a:1, fb:'Under Rule 173(xiv), negotiation is severely discouraged and, where unavoidable, is conducted only with L1 \\u2014 never extended to other bidders, even if cartel rates are suspected.'}\n]);\n\n\nbuildQuiz('quizStage8','quizScore8','quizNext8',[\n {q:'Among the fast-track modes for an operational emergency, the fastest suggested route is \\u2014', opts:['Open Tender Enquiry','Procurement through the GeM portal','Global Tender Enquiry','Two-stage bidding'], a:1, fb:'Procurement through GeM is the fastest suggested route, followed by direct purchase, purchase committee, and SLTE\/LTE\/STE with reduced bid time.'},\n {q:'In a declared crisis, the minimum time for bid submission may be shortened to about \\u2014', opts:['1\\u20133 days','1\\u20132 weeks','three weeks','four weeks'], a:0, fb:'Crisis dispensations allow timelines as short as 1\\u20133 days, and bids may even be received by phone, email or in person.'},\n {q:'During an emergency, which documents normally do NOT apply?', opts:['The GFR itself','Model Tender Documents and standard GCC','The SoPP','The Constitution'], a:1, fb:'Model Tender Documents and the standard General Conditions of Contract do not apply to emergency procurement; norms like EMD, SD and LD may also be relaxed.'},\n {q:'A buy-back offer, where an old item is traded in while buying a new one, is provided for in \\u2014', opts:['Rule 144','Rule 169','Rule 176','Rule 154'], a:2, fb:'Under Rule 176, the bidder is asked to quote both with a rebate for the old item and without it, giving the department the option to trade or not.'},\n {q:'Acquisition of capital goods differs from consumables mainly because it \\u2014', opts:['Needs no budget','Is an investment decision against an item-specific budget','Is always single-source','Is exempt from inspection'], a:1, fb:'Capital goods are procured against an item-specific budgetary provision and are treated as an investment decision, often judged on Total Cost of Ownership.'},\n {q:'An Annual Maintenance Contract (Rule 169) should begin \\u2014', opts:['On the date of order','Before delivery','After the warranty period expires','Only at contract closure'], a:2, fb:'The AMC starts after the warranty period, during which the supplier maintains the goods free of cost; it may be with the OEM or another competent firm.'},\n {q:'In the NPV example used for evaluating capital-goods offers, the discount rate is taken as \\u2014', opts:['5%','7%','10%','12%'], a:1, fb:'The illustrative discount rate is 7%; the NPV is computed conveniently using the NPV function in Excel.'},\n {q:'In the procurement of books and print media, the L1 (best) offer is the one with the \\u2014', opts:['Lowest list price','Highest discount on published price','Fastest delivery','Largest catalogue'], a:1, fb:'Offers are solicited as a net discount over the published price, and the vendor offering the most competitive discount is treated as L1.'}\n]);\n\nbuildQuiz('quizStage9','quizScore9','quizNext9',[\n {q:'A plus\/minus option clause for varying quantity should ideally not exceed \\u2014', opts:['5\\u201310%','15\\u201320%','25\\u201330%','40\\u201350%'], a:2, fb:'The option clause should ideally not exceed 25\\u201330% of the original quantity and is normally exercised after receipt of 50% of the quantity, with CA approval.'},\n {q:'In contract law terms, the delivery period stipulated in a contract is treated as \\u2014', opts:['A guideline only','The essence of the contract','Negotiable at any time','Irrelevant to LD'], a:1, fb:'The delivery period is the \"essence of the contract\"; vague terms like \"immediately\" are avoided as they are not legally binding.'},\n {q:'Liquidated Damages for delayed delivery typically accrue at \\u2014', opts:['0.1% per week','0.5% per week','2% per week','5% per week'], a:1, fb:'LD is typically 0.5% (half per cent) of contract value per week of delay, recoverable from the performance\/warranty guarantee.'},\n {q:'The normal maximum on Liquidated Damages is \\u2014', opts:['2% of contract value','5% of contract value','10% of contract value','25% of contract value'], a:1, fb:'The normal cap on LD is 5% of contract value, rising to a maximum of 10% only where performance is allowed after inordinate delays.'},\n {q:'The basis for payment, prepared after inspection and acceptance of the goods, is the \\u2014', opts:['Letter of Award','Goods Receipt & Inspection Report (GRIR)','Comparative statement','Bid opening report'], a:1, fb:'The GRIR (Annexure 25) is prepared after inspection and acceptance and is the basis for receiving and paying for the material.'},\n {q:'When a contractor defaults, re-procuring the goods at the defaulter\\u2019s risk and cost is known as \\u2014', opts:['Risk purchase','Force majeure','Novation','Rate contract'], a:0, fb:'A risk purchase re-procures the goods at the defaulting contractor\\u2019s risk and cost \\u2014 one of the remedies for breach, alongside LD and encashment of performance security.'},\n {q:'Arbitration and conciliation of contract disputes are governed by the \\u2014', opts:['Contract Act, 1872','Arbitration and Conciliation Act, 1996','Sale of Goods Act, 1930','Competition Act, 2002'], a:1, fb:'The Arbitration and Conciliation Act, 1996 governs arbitration and conciliation; the seat of arbitration is the place from which the Letter of Award or contract is issued.'},\n {q:'Mediation of disputes is governed by the Mediation Act 2023 and must normally be completed within \\u2014', opts:['30 days','60 days','120 days','one year'], a:2, fb:'Mediation under the Mediation Act, 2023 must normally be completed within 120 days; if the dispute survives, parties may escalate.'}\n]);\n\nbuildQuiz('quizStage10','quizScore10','quizNext10',[\n {q:'In disposal, which bidder is selected \\u2014 the mirror image of procurement?', opts:['L1 (lowest)','H1 (highest)','The first bidder','Any registered dealer'], a:1, fb:'Disposal is the reverse of procurement: the highest bidder (H1) wins, and material is never sold below the reserve price.'},\n {q:'Before an item of stores can be sold as scrap, it must first be declared so by the \\u2014', opts:['Tender Committee','Survey Committee','Bid Opening Committee','Reserve Price Committee'], a:1, fb:'A Survey Committee appointed by the Head of Office inspects and declares the item scrap\/surplus\/obsolete, recording the reasons.'},\n {q:'Where an item\\u2019s book value is negligible or unavailable, its assessed value may be taken as \\u2014', opts:['1% of original cost','5% of original cost','10% of original cost','Nil'], a:1, fb:'The assessed value is based on book value, or 5% where the book value is negligible or unavailable.'},\n {q:'Scrap valued between Rs 15,000 and Rs 4 lakh is normally disposed of by \\u2014', opts:['Petty sale','Limited Tender to local scrap dealers','e-Auction only','Negotiation'], a:1, fb:'Scrap above Rs 15,000 and up to Rs 4 lakh is sold on a limited-tender basis to locally known scrap dealers in the relevant category.'},\n {q:'For scrap valued above Rs 4 lakh, the preferred mode of disposal is \\u2014', opts:['Petty sale','Limited Tender','e-Auction (NIC \/ MSTC \/ Railways)','Direct sale'], a:2, fb:'Above Rs 4 lakh, e-Auction is the preferred mode \\u2014 using platforms such as NIC, MSTC or Indian Railways \\u2014 though a disposal tender or public auction may also be used.'},\n {q:'The reserve price for a disposal lot must be \\u2014', opts:['Published in the NIT','Recorded in a sealed, page-numbered register before disposal','Set after bids are opened','Equal to the book value'], a:1, fb:'The reserve price is recorded on a page-numbered register and sealed before the disposal date; material is never sold below it.'},\n {q:'When fit-to-use surplus is transferred to another Government department, the rate is book value plus \\u2014', opts:['10% overheads + 5% freight','20% overheads + 7.5% freight','25% overheads + 10% freight','no addition'], a:1, fb:'Such transfers are priced at book value plus 20% overheads plus 7.5% freight.'},\n {q:'Disposal of electronic scrap must comply with the \\u2014', opts:['Batteries Rules 2001','e-Waste (Management) Rules, 2016','Sale of Goods Act, 1930','URDG 758'], a:1, fb:'Electronic scrap is governed by the e-Waste (Management) Rules, 2016; battery scrap by the Batteries Rules 2001, and hazardous scrap by the Hazardous Wastes Rules.'}\n]);\n\n<\/script>\n\n<\/body>\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 Goods (2024) \u2014 Interactive Study Notes Manual for Procurement of Goods The Government of India’s guidance 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