Podcast
Questions and Answers
What does 'L1' refer to in the context of procurement?
What does 'L1' refer to in the context of procurement?
- The bid with the shortest duration
- The lowest bid received (correct)
- The highest bid submitted
- An average of all bids submitted
What is the maximum margin of purchase preference for a Class-I local supplier?
What is the maximum margin of purchase preference for a Class-I local supplier?
- 20 percent (correct)
- 10 percent
- 25 percent
- 15 percent
Which types of suppliers are eligible to bid when a global tender enquiry is issued?
Which types of suppliers are eligible to bid when a global tender enquiry is issued?
- Class-I and Class-II local suppliers only
- Only Class-II local suppliers
- Only Class-I local suppliers
- Class-I local suppliers, Class-II local suppliers, and Non-local suppliers (correct)
What does the term 'Nodal Ministry' refer to?
What does the term 'Nodal Ministry' refer to?
In which situation will only Class-I local suppliers be eligible to bid?
In which situation will only Class-I local suppliers be eligible to bid?
Which of the following items falls under the definition of 'Works'?
Which of the following items falls under the definition of 'Works'?
Which of the following bids are allowed for procurements less than Rs. 200 Crore without global tender enquiry?
Which of the following bids are allowed for procurements less than Rs. 200 Crore without global tender enquiry?
What type of contracts does 'services' include in this context?
What type of contracts does 'services' include in this context?
What is expected of an officer regarding the expenditure of public moneys?
What is expected of an officer regarding the expenditure of public moneys?
Which of the following is NOT a principle regarding expenditure from public moneys?
Which of the following is NOT a principle regarding expenditure from public moneys?
Under what conditions can expenditure from public moneys benefit a specific individual?
Under what conditions can expenditure from public moneys benefit a specific individual?
What is the main purpose of the Procurement Policy Division (PPD)?
What is the main purpose of the Procurement Policy Division (PPD)?
What feature distinguishes the Central Public Procurement Portal (CPPP)?
What feature distinguishes the Central Public Procurement Portal (CPPP)?
What is a key responsibility of officers concerning financial order?
What is a key responsibility of officers concerning financial order?
What is the intention behind not centralizing procurement processes in the PPD?
What is the intention behind not centralizing procurement processes in the PPD?
Which of the following statements reflects a requirement for allowances granted from public funds?
Which of the following statements reflects a requirement for allowances granted from public funds?
What is the first step in the procurement process for Public Works?
What is the first step in the procurement process for Public Works?
Which document is issued after the Acceptance of necessity and in-Principle Approval?
Which document is issued after the Acceptance of necessity and in-Principle Approval?
What powers are governed by the Delegation of Financial Powers Rules (DFPR)?
What powers are governed by the Delegation of Financial Powers Rules (DFPR)?
Which item allows for expenditure sanction based solely on a Preliminary Project Report?
Which item allows for expenditure sanction based solely on a Preliminary Project Report?
What is included under the Administrative control of works?
What is included under the Administrative control of works?
Which rule dictates the powers of the Department relating to works?
Which rule dictates the powers of the Department relating to works?
What precedence does the Central Public Works Department have over works?
What precedence does the Central Public Works Department have over works?
What is the requirement for 'Class I Local suppliers' to qualify for the award of contract?
What is the requirement for 'Class I Local suppliers' to qualify for the award of contract?
Which step follows the preparation of bid documents in the procurement process?
Which step follows the preparation of bid documents in the procurement process?
Which option describes the purchase preference process if 'Class I Local suppliers' do not qualify for at least 50 percent of the tendered quantity?
Which option describes the purchase preference process if 'Class I Local suppliers' do not qualify for at least 50 percent of the tendered quantity?
Which criteria must the lowest quoting 'Class I local supplier' meet to be awarded the contract?
Which criteria must the lowest quoting 'Class I local supplier' meet to be awarded the contract?
What can the procuring entities do to clarify the bid evaluation process?
What can the procuring entities do to clarify the bid evaluation process?
What is the exemption criterion for small purchases under the outlined provisions?
What is the exemption criterion for small purchases under the outlined provisions?
What happens if the lowest quoting 'Class I local supplier' does not accept the offered quantity?
What happens if the lowest quoting 'Class I local supplier' does not accept the offered quantity?
What stipulation applies to procuring entities regarding procurement splitting to avoid provisions?
What stipulation applies to procuring entities regarding procurement splitting to avoid provisions?
What is the main purpose of awarding at least 50 percent of the contract to 'Class I Local suppliers'?
What is the main purpose of awarding at least 50 percent of the contract to 'Class I Local suppliers'?
What contributes to cost overruns in public projects aside from project execution?
What contributes to cost overruns in public projects aside from project execution?
What is the desired circumstance regarding land before awarding a contract?
What is the desired circumstance regarding land before awarding a contract?
What should public authorities do regarding the follow-up for obtaining clearances?
What should public authorities do regarding the follow-up for obtaining clearances?
What is the ideal scenario for land acquisition before starting work?
What is the ideal scenario for land acquisition before starting work?
What should be ensured concerning auxiliary services before project execution?
What should be ensured concerning auxiliary services before project execution?
What determines the minimum necessary encumbrance-free land required before awarding a contract?
What determines the minimum necessary encumbrance-free land required before awarding a contract?
Why might it not be prudent to delay the award of a contract for land acquisition?
Why might it not be prudent to delay the award of a contract for land acquisition?
What aspect of project planning should be closely monitored by public authorities?
What aspect of project planning should be closely monitored by public authorities?
Study Notes
Definitions and Terms
- L1: Refers to the lowest tender, bid, or quotation received and evaluated in the procurement process.
- Margin of Purchase Preference: Fixed at 20%, allowing prices by “Class-I local suppliers” to exceed L1 for purchase preferences.
- Nodal Ministry: The designated Ministry or Department for specific goods, services, or works as per the order.
- Procuring Entity: Government bodies including ministries, departments, autonomous bodies, and government companies.
- Works: Includes all activities as defined by Rule 130 of GFR-2017, including turnkey projects.
Procurement Eligibility
- Class-I local suppliers are eligible to bid if the Nodal Ministry confirms sufficient local capacity and competition.
- Class-I and Class-II local suppliers can participate unless a global tender is issued, which allows non-local suppliers to bid as well.
- Global tender enquiries for procurements under Rs. 200 Crore require approval from the designated competent authority.
- Works include Engineering, Procurement and Construction (EPC) contracts while services cover System Integrator (SI) contracts.
Purchase Preference Guidelines
- Contracts should be awarded to Class-I local suppliers if they qualify for at least 50% of the tendered quantity.
- Purchase preference prioritizes Class-I local suppliers, with margins determined by a cap within 20% of the highest quoted rate.
- The lowest Class-I local supplier is first in line for purchase preference, followed by the next higher suppliers if constraints exist.
Small Purchases Exemption
- Procurements valued under Rs. 5 lakhs are exempt from these rules but must not be split to evade regulations.
Financial Prudence Principles
- Public expenditure should reflect the same diligence as personal spending.
- Expenditure must not exceed what is reasonably necessary.
- No authority should grant expenditure sanctions benefiting themselves or a particular group.
- Allowances must not lead to undue profit for recipients.
Public Procurement Infrastructure
- Procurement Policy Division: Established for uniformity in procurement processes, best practices dissemination, and capacity building.
- Central Public Procurement Portal (CPPP): Promotes transparency in public procurement, providing centralized access to procurement information across ministries.
Statutory Clearances and Land Acquisition
- Timely acquisition of necessary statutory clearances is essential to avoid project delays related to environmental and safety regulations.
- Land acquisition should be proactive, ensuring land availability before contract awards to avoid hindrances to project execution.
Public Works Processing Stages
- Include stages like perspective planning, project approval, bidding, and execution to ensure systematic project management.
- Quick expenditure sanctions are permitted for repair works up to Rs. 30 lakh based on preliminary assessments.
Administrative Control and Sanction Powers
- Administrative responsibility encompasses overall construction, maintenance, and financial provision for projects.
- Delegation of powers for expenditure and fund management follows established financial rules, distinguishing between various authorities in governance.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of key procurement terms and eligibility criteria outlined in the government's procurement process. This quiz covers definitions like L1, margin of purchase preference, and the roles of local suppliers and procuring entities. Perfect for those involved in or learning about public procurement.
