Procurement Definitions and Eligibility Quiz

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Questions and Answers

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?

20 percent (correct)

10 percent

25 percent

15 percent

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?

The Ministry identified for specific goods or services Signup and view all the answers

In which situation will only Class-I local suppliers be eligible to bid?

When local capacity and competition are sufficient Signup and view all the answers

Which of the following items falls under the definition of 'Works'?

Engineering, Procurement and Construction contracts Signup and view all the answers

Which of the following bids are allowed for procurements less than Rs. 200 Crore without global tender enquiry?

Class-I and Class-II local suppliers only Signup and view all the answers

What type of contracts does 'services' include in this context?

System Integrator contracts Signup and view all the answers

What is expected of an officer regarding the expenditure of public moneys?

To use public funds as if it were their own money. Signup and view all the answers

Which of the following is NOT a principle regarding expenditure from public moneys?

Public funds can be used to directly benefit any individual. Signup and view all the answers

Under what conditions can expenditure from public moneys benefit a specific individual?

If it can be enforced in a Court of Law or follows recognized policy. Signup and view all the answers

What is the main purpose of the Procurement Policy Division (PPD)?

To set guidelines and encourage uniformity in procurement processes. Signup and view all the answers

What feature distinguishes the Central Public Procurement Portal (CPPP)?

It ensures transparency in public procurement processes. Signup and view all the answers

What is a key responsibility of officers concerning financial order?

To enforce financial rules and ensure their own office complies. Signup and view all the answers

What is the intention behind not centralizing procurement processes in the PPD?

To allow more autonomy to individual departments in their spending. Signup and view all the answers

Which of the following statements reflects a requirement for allowances granted from public funds?

Allowances must be reasonable and not a source of profit. Signup and view all the answers

What is the first step in the procurement process for Public Works?

Preparation of Preliminary Project Report (PPR) Signup and view all the answers

Which document is issued after the Acceptance of necessity and in-Principle Approval?

Administrative Approval and Expenditure Sanction Signup and view all the answers

What powers are governed by the Delegation of Financial Powers Rules (DFPR)?

Sanction of works and re-appropriation of funds Signup and view all the answers

Which item allows for expenditure sanction based solely on a Preliminary Project Report?

Repair works up to Rs. 30 lakh Signup and view all the answers

What is included under the Administrative control of works?

Provision of funds for execution Signup and view all the answers

Which rule dictates the powers of the Department relating to works?

Rule 133(1) and 133(2) of GFR, 2017 Signup and view all the answers

What precedence does the Central Public Works Department have over works?

They administer works not specifically allotted to any Ministry or Department. Signup and view all the answers

What is the requirement for 'Class I Local suppliers' to qualify for the award of contract?

They must qualify for at least 50 percent of the tendered quantity. Signup and view all the answers

Which step follows the preparation of bid documents in the procurement process?

Publication and receipt of bids Signup and view all the answers

Which option describes the purchase preference process if 'Class I Local suppliers' do not qualify for at least 50 percent of the tendered quantity?

Purchase preference is given to 'Class I local suppliers' over others if their quoted rate is within a specific margin. Signup and view all the answers

Which criteria must the lowest quoting 'Class I local supplier' meet to be awarded the contract?

Their quoted rates must be within 20 percent margin of purchase preference. Signup and view all the answers

What can the procuring entities do to clarify the bid evaluation process?

They may stipulate their own tender-specific criteria for contract awards. Signup and view all the answers

What is the exemption criterion for small purchases under the outlined provisions?

Procurements below Rs. 5 lakhs are exempted. Signup and view all the answers

What happens if the lowest quoting 'Class I local supplier' does not accept the offered quantity?

An opportunity is given to the next higher 'Class I local supplier' within the margin. Signup and view all the answers

What stipulation applies to procuring entities regarding procurement splitting to avoid provisions?

They must ensure that procurement is not split to avoid provisions. Signup and view all the answers

What is the main purpose of awarding at least 50 percent of the contract to 'Class I Local suppliers'?

To prioritize local economic support. Signup and view all the answers

What contributes to cost overruns in public projects aside from project execution?

Time taken in obtaining clearances Signup and view all the answers

What is the desired circumstance regarding land before awarding a contract?

100% required land in possession Signup and view all the answers

What should public authorities do regarding the follow-up for obtaining clearances?

Monitor progress closely Signup and view all the answers

What is the ideal scenario for land acquisition before starting work?

Substantial completion of land acquisition Signup and view all the answers

What should be ensured concerning auxiliary services before project execution?

They should be fully ensured and available Signup and view all the answers

What determines the minimum necessary encumbrance-free land required before awarding a contract?

Conclusive guidelines from authorities Signup and view all the answers

Why might it not be prudent to delay the award of a contract for land acquisition?

Some portions may be acquired post-award without delaying progress Signup and view all the answers

What aspect of project planning should be closely monitored by public authorities?

Both clearances and land acquisition progress Signup and view all the answers

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.

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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.