Procurement Processes and Principles

<p>Letters of Intent and Roll-on-Plans (C)</p> Signup and view all the answers

<p>Meeting stringent specifications (B)</p> Signup and view all the answers

<p>To invite suppliers or contractors to submit their proposals. (D)</p> Signup and view all the answers

<p>Clarifying any doubts or questions about the tender prior to submission. (D)</p> Signup and view all the answers

<p>It requires bidders to submit a technical bid and a financial bid separately. (B)</p> Signup and view all the answers

<p>They are typically rejected and not opened. (C)</p> Signup and view all the answers

<p>An unforeseen event preventing a party from fulfilling its contractual obligations. (D)</p> Signup and view all the answers

<p>Submission of a valid UAM number (D)</p> Signup and view all the answers

<p>Public safety needs (B)</p> Signup and view all the answers

<p>They must be sourced from a Defence Public Sector Undertaking. (C)</p> Signup and view all the answers

<p>Reasons for invocation of procurement provision (B)</p> Signup and view all the answers

<p>An authority competent to grant waivers (C)</p> Signup and view all the answers

<p>They must bid for contracts through an open tendering process. (D)</p> Signup and view all the answers

<p>They must be used as enquiry documents and contracts. (D)</p> Signup and view all the answers

<p>Adequate justification for the choice (C)</p> Signup and view all the answers

<p>6 Months (C)</p> Signup and view all the answers

<p>HVF (D)</p> Signup and view all the answers

<p>Annually (C)</p> Signup and view all the answers

<p>Liquidate the excess inventory (A)</p> Signup and view all the answers

<p>They prevent any excess procurement of inventory. (D)</p> Signup and view all the answers

<p>Lead time and production duration (A)</p> Signup and view all the answers

<p>Progress of the action plan (B)</p> Signup and view all the answers

<p>Stocking is decided based on contract terms. (A)</p> Signup and view all the answers

<p>Completion of supplies under the SDOTE. (A)</p> Signup and view all the answers

<p>When SDOTE supplies will not materialise in time. (D)</p> Signup and view all the answers

<p>Rs. 25 lakh (A)</p> Signup and view all the answers

<p>Obtaining orders from established sources. (A)</p> Signup and view all the answers

<p>Registered vendors in the same product range can be included. (B)</p> Signup and view all the answers

<p>Rs. 30,00,000/- (B)</p> Signup and view all the answers

<p>To allow bidders to present successively more favorable bids (C)</p> Signup and view all the answers

<p>Business Analytics (BA) tools (C)</p> Signup and view all the answers

<p>Using offline methods (B)</p> Signup and view all the answers

<p>Divide into small quantities (A)</p> Signup and view all the answers

<p>Goods available for retail purchase (D)</p> Signup and view all the answers

<p>Relevant provisions of the Procurement Manual (C)</p> Signup and view all the answers

<p>OFB after creating a web portal (D)</p> Signup and view all the answers

The process of inviting bids from potential suppliers for a project or service.

The process of making a tender public, ensuring potential bidders are aware of the opportunity.

A formal document used to invite bids from potential suppliers.

A formal document containing all the information required for a potential supplier to submit a bid.

The process of extending the deadline for submitting bids.

Micro and Small Enterprises (MSEs) must submit their Unique Identification (UAM) number to avail benefits under the Public Procurement Policy.

Start-ups, whether MSEs or not, can get experience and turnover requirements relaxed, but must still meet quality and technical specifications.

The government can procure goods and services from Defence Public Sector Undertakings (DPSUs) through tenders.

If a DPSU has developed or manufactured goods exclusively for the Defence, procurement must be done from that DPSU.

Defence PSUs must compete with private companies in bidding for goods and services, excluding items developed exclusively for the Defence.

Standard tender documents are required for enquiries and contracts, but deviations can be allowed by competent authorities.

The Ministry of Micro, Small and Medium Enterprises and the Ministry of Finance provide guidelines for procurement policies related to MSEs and startups.

The Government Financial Rules (GFR) 2017, which are revised periodically, influence procurement policies, particularly regarding startups.

Considering factors like factory capacity, indigenous source availability, cost of domestic vs. imported supplies, and more when making procurement decisions.

A process where a factory decides whether to manufacture a part itself (make) or buy it from an external supplier (buy), often with the goal of import substitution.

Prioritizing outsourcing non-core activities to free up internal resources for essential operations, aiming for cost-effectiveness.

Official documents like indents, supply plans, and purchase requisitions that authorize the procurement process.

All purchases must adhere to strict, specifically defined parameters.

A method of online procurement where buyers invite sellers to submit successively lower bids within a set time frame, with the lowest bid winning.

Goods that are readily available on the market and used in fields outside of defense.

Using online bidding tools like GeM for purchases above a certain amount (Rs. 30,00,000/-) to ensure transparency and get the best price.

Purchases made for day-to-day operations, not for long-term assets.

Purchases for acquiring fixed assets, not for regular business operations.

Government buyers can use GeM's analytics tools to ensure prices are reasonable before placing orders.

Avoid breaking down large demands into smaller orders just to avoid using online bidding platforms like GeM.

A detailed set of instructions for purchasing goods and services through GeM will be issued by the Ordnance Factories Board (OFB) or Ministry of Defence (MoD).

The authorized inventory level for various types of ordnance factories varies by category. For example, armored vehicles, except for highly specialized units, require a 6 month supply, while highly specialized armored vehicles require 12 months.

In exceptional circumstances, the operating member of an ordnance factory can request a higher inventory level, but it must be approved by both the operating member and the finance member.

Commercial off-the-shelf (COTS) items and rate contract items are not subject to fixed SIH inventory levels. Their stocking levels are dictated by the terms and conditions of their individual contracts.

The authorized SIH inventory level is reviewed annually by the operating member in consultation with the Member/P&MM and Member/Finance of Ordnance Factory Board. This review aims to reduce inventory carrying costs.

The report of the annual review of the authorized SIH inventory level is sent to the Secretary (DP) for information. The Secretary (DP) may then initiate an external validation exercise using an outside agency.

If an ordnance factory holds inventory exceeding its authorized limit, it must create a time-bound action plan to reduce excess inventory. This plan should be closely monitored by the factory and the concerned operating division, with the LAO also involved.

Procurement of stores is based on the SHIS, which takes into account existing stocks, work-in-progress, and dues. This method aims to prevent procurement that leads to holding stock exceeding requirements.

Provisioning reviews are conducted annually based on the Supply Plan. However, if there's a change in production requirements due to demand shifts, a mid-course review is necessary.

A method of procuring supplies that allows for the purchase of additional goods or services to cover any shortfall in supplies received from the Standard Defence Offset (SDO) agreement.

The process of ensuring that established vendors for components or sub-assemblies are also considered as established vendors for the larger aggregates, assemblies, or sub-assemblies they contribute to.

The situation where sufficient supplies from the Standard Defence Offset agreement (SDO) are unlikely to arrive in time to meet production targets.

A process where orders are placed with established vendors to maintain active production lines and prevent them from becoming inactive due to lack of work.

A method of procurement used for specialized items with limited commercial applications, where the value of the shortfall is less than Rs. 25 lakh.