GOVERNMENT OF INDIAMINISTRY OF ENVIRONMENT AND

FORESTS

INSTRUCTIONS RELATING TO PROCUREMENT OF GOODS AND SERVICES

AND OUTSOURCING OF SERVICES

JUNE 2006

CHAPTER ONE

General Financial Rules 2005 and Delegation of Financial Powers

Rules, 1978 as amended from time to time lay down the procedures and

powers of the various Ministries and Departments of the Government of

India in matters relating to handling of public money. Rules 135 to 185 of

the General Financial Rules, 2005 specifically deal with procurement of

goods and services and outsourcing of services. Rule 135 states that

detailed instructions relating to procurement of goods may be issued by the

procuring departments broadly in conformity with the general rules

contained in Chapter 6 of GFR, 2005. Similarly Rule 164 lays down that

detailed instructions regarding procurement of services may be issued by the

concerned Ministries or Departments. Accordingly the following detailed

instructions are being issued for guidance and compliance by Ministry of

Environment and Forests including its subordinate units.

Apart from the provisions of the GFR, 2005 as applicable on case

to case basis, the additional instructions/conditions laid out hereinafter

shall also apply. Definition, meaning and interpretation of any word in the

instructions will carry the same definition, meaning and interpretation as in

the GFR.

PROCUREMENT OF GOODS:

1.1 Purchase of Goods valued upto Rs.1,000: Purchase of goods upto

the value of Rs.1,000 (Rupees One Thousand) only on each occasion

may be made as per GFR 145, without inviting quotations or bids on the

basis of a certificate to be recorded by the competent authority in the

following format:

“I …………… , am personally satisfied that these goods purchased

are of the requisite quality and specification and have been purchased

from a reliable supplier at a reasonable price”. As a rule it may be

ensured that certified quality products, if possible from authorized

dealers, are purchased.

1.2 Purchase of Goods valued above Rs.1,000 and upto Rs.15,000:

Purchase of goods upto the value above Rs.1,000 and upto Rs.15,000

only on each occasion may be made as per GFR 145, without inviting

quotations or bids on the basis of a certificate to be recorded by the

competent authority in the following format:

“I ……………, am personally satisfied that these goods purchased are

of the requisite quality and specification and have been purchased

from a reliable supplier at a reasonable price”. As a rule it may be

ensured that products of ISI certification and, if possible from

authorized dealers, are purchased.

1.3 Purchase of Goods valued above Rs.15,000 and upto Rs.100,000:

Purchase of goods costing above Rs.15,000 (Rupees Fifteen

Thousand) only and upto Rs.1,00,000 (Rupees One Lakh) only on each

occasion may be made as per Rule 146 of GFR, 2005 on the

recommendations of a duly constituted Local Purchase Committee

consisting of three members of an appropriate level as decided by the Head

of the Department. The Committee will survey the market to ascertain the

reasonableness of rate, quality and specifications and identify the

appropriate supplier. Before recommending placement of the purchase

order, the members of the Committee will jointly record a certificate as

under:

“Certified that we ……….., members of the purchase committee are

jointly and individually satisfied that the goods recommended for

purchase are of the requisite specification and quality, priced at the

prevailing rate and the supplier recommended is reliable and

competent to supply the goods in question”. As a rule it may be

ensured that ISI certified products and/or from authorized dealers and

or registered firms if available.

1.4 Purchase of Goods valued above Rs.100,000 and upto

Rs.25,00,000:

Goods costing above Rs.100,000 (Rupees One Lakh) only and upto

Rs.25,00,000 (Rupees Twenty Five Lakh) only on each occasion may be

procured through the method of Limited Tender Enquiry as per Rule 151 of

GFR, 2005. Copies of the bidding document should be sent directly by speed

post/registered post/courier/e-mail to firms which are borne on the list of

registered suppliers for the goods in question as referred under Rule 142 of

GFR 2005 (Regarding Registration of Suppliers). The number of supplier

firms in limited tender enquiry should be more than three. Further, web

based publicity should be given for limited tenders. Efforts should be

made to identify a number of approved suppliers to obtain more responsive

bids on competitive basis.

Sufficient time should be allowed for submission of bids in the

Limited Tender Enquiry cases.

1.5 Purchase of Goods valued above Rs.25,00,000:

1.5.1 Goods having estimated cost above Rs.25,00,000 (Rupees

Twenty Five Lakh) only may be procured through the method of

Advertised Tender Enquiry as per Rule 150 of GFR, 2005. Advertisement

in each case should be given in the Indian Trade Journal (ITJ), published

by Director General of Commercial Intelligence and Statistics, Kolkata and

published in one national daily having wide circulation.

1.5.2 An organization having its own web site should also publish all

its advertised tender enquiries on the web site and provide a link with NIC

web site. It should also give its website address in the advertisements in

ITJ and newspapers.

1.5.3 The organization should also post the complete bidding

document in its web site and permit prospective bidders to make use of the

document downloaded from the website. If such a downloaded bidding

document is priced, there should be clear instructions for the bidder to pay

the amount by demand draft, etc. along with the bid.

1.5.4 Ordinarily the minimum time to be allowed for submission of

bids should be three weeks from the date of publication of the tender notice

or availability of the bidding document for sale, whichever is later. Where

the department also contemplates obtaining bids from abroad, the

minimum period should be kept as four weeks for both domestic and

foreign bidders.

1.6 Registration of Suppliers:

With a view to establishing reliable sources for procurement of goods

commonly required for Government use, the Central Purchase

Organisation (e.g. DGS&D) will prepare and maintain item-wise lists of

eligible and capable suppliers. Such approved suppliers will be known as

“Registered Suppliers”. All Ministries or Departments may utilize these

lists as and when necessary. Such registered suppliers are prima facie

eligible for consideration for procurement of goods through Limited

Tender Enquiry. They are also ordinarily exempted from furnishing bid

security along with their bids. A Head of Department may also register

suppliers of goods which are specifically required by that Department

or Office.

1.6.1Credentials, manufacturing capability, quality control systems

past performance, after sales service, financial background, etc. of the

suppliers should be carefully verified before registration.

1.6.2The suppliers will be registered for a fixed period (between 1 to

3 years) depending on the nature of the goods. At the end of this period, the

registered suppliers willing to continue with registration are to apply afresh

for renewal of registration. New suppliers may also be considered for

registration at any time, provided they fulfil all the required conditions.

1.6.3 Performance and conduct of every registered supplier is to be

watched by the concerned Ministry or Department. The registered suppliers

are liable to be removed from the list of approved suppliers if they fail to

abide by the terms and conditions of the registration or fail to supply the

goods on time or supply sub-standard goods or make any false declaration to

any Government agency or for any ground which, in the opinion of the

Government, is not in public interest.

1.7 Reserved Items:

As per Rule 144 of GFR the Central Departments or Ministries

are to make their purchase for reserved goods and items from such units as

per instructions issued by the Central Government in this regard. The price

and purchase preference will be as per the instructions issued by the Central

Government from time to time.

1.8 Rate Contract :

The Ministry or Department shall follow the Rate Contract of DGS&D

to the maximum extent possible as per Rule 141 of GFR. The Indent Form

to be utilized for this purpose will be as per the Standard Form evolved by

the DGS&D as in Rule 140 of GFR.

1.9 Purchase of Goods directly under Rate Contract:

As per Rule 147 of GFR, Ministry or Department may procure such

rate contracted goods directly from suppliers. The prices to be paid for such

goods shall not exceed those stipulated in the Rate Contract and other salient

terms and conditions of the purchase should be in line with those specified

in the rate contract. The Ministry or Department shall make its own

arrangement for inspection and testing of such goods where required.

2.0 GUINDELINES FOR TENDERING

2.1 Classification of Goods:

The goods to be purchased have been categorized into Category I and

Category II for the purpose of applying appropriate decision rules. In

respect of goods included/to be included in Categories I and II, the decision

rules to be applied are as follows:

Category I: Minimisation of Price subject to a specified minimum

standard of quality.

Category II: Maximation of quality subject to constraint of cost where

quality is inherently subjective.

The indicative list of items included in the Categories I and II of goods

is in the Annexure.

2.2 Preparation and Evaluation of Tender Documents:

For procurement of goods of Category I and II, bids may be obtained in

two parts. In case of Category I goods, bids shall be called for qualifying

and financial bid. The illustrative proforma is enclosed at Annexure 2.2. In

this case, qualifying and financial bids shall be called for at the same in

separate sealed covers. In the first stage, only the qualifying bids shall be

opened by the Tender Evaluation Committee as constituted under these rules

as appropriate by the Head of Department. On the basis of the qualifying

bids, a statement of qualified tenderers shall be prepared. In the second

stage, the financial bids of such qualified tenders shall be opened by the

Tender Evaluation Committee and the job will be awarded to the lowest

tenderer. As per guidelines issued by the Central Vigilance Commission

vide its Office Order No.72/12/04 dated 10.12.2004, in order to maintain

transparency and fairness, it would be appropriate that organizations should

evolve a practice of finalizing the acceptability of the bidding firms in

respect of the qualifying criteria before or during holding technical

negotiations with them. Obtaining revised price bids from the firms,

which do not meet the qualification criteria, would be incorrect.

Therefore the exercise of short listing of the qualifying must be completed

prior to seeking the revised price bids. Moreover, the intimation of rejection

to the firms whose bids have been evaluated but found not to meet the

qualification criteria, along with the return of the unopened price bid, will

enhance transparency and plug the loop holes in the tendering system.

In case of Category II goods, two bids shall be called for technical and

financial bids as per Rule 152 of GFR. The technical bid consists of all

technical details along-with commercial terms and conditions. Financial bid

will indicate item-wise price for the items mentioned in the technical bid.

Technical bids are to be opened by the Purchasing Ministry/Department at

the first instance and evaluated by a competent committee or authority. At

the second stage, financial bids of only the technically acceptable offers

should be opened for the evaluation and ranking before awarding the

contract.

2.2.1 Transparency, competition, fairness and elimination of

arbitrariness in the procurement process should be taken care in the

preparation and evaluation of bid/tender documents as per Rule 160 of the

GFR.

(1) The text of the bidding document should be self contained

and comprehensive without any ambiguity. It will be helpful if

specifications are indicated in a wide zone instead of brands or

specifications applicable to one or a small number of suppliers. All essential

information needed by bidder should be clearly spelt out like criteria for

eligibility and qualifications to be met by bidders, eligibility criteria for

goods, date, time and place for sending the bids, date, time and place of

opening the bids, terms of delivery, special terms affecting performance if

any etc.

(2) Suitable provision in the bidding document to enable a

bidder to question the bidding conditions, bidding process and/or rejection

of its bids.

(3) Suitable provision for settlement of disputes.

(4) Interpretation of resultant contract under Indian laws.

(5) Reasonable time to send the bids.

(6) Opening of bid in public before authorized representative of

the bidders.

(7) Clear statement regarding the specifications of the required

goods. Use of standard specifications, if any, in most of the cases.

(8) Pre-bid conference: In case of turn key contract or contracts

of special nature for procurement of sophisticated and costly equipment the

provision for pre bid conference be made in the bid document to clarify

issues and clear doubts. The date, time and place of pre bid conference be

indicated in the bidding document itself.

(9) Criteria for determining responsiveness of the bids, criteria

as well as factors to be taken in to account for evaluating the bids on a

common platform and the criteria for awarding the contract to the responsive

lowest bidder should be clearly indicated in the bidding document.

(10) No new conditions should be brought in for evaluation of

the bids except already given in the bid document.

(11) No recourse to extrinsic evidence except the contents of the

bid itself.

(12) Bidders should not be permitted to alter or modify their bids

after expiry of the deadline for receipt of bids.

(13) No negotiation with bidders except with the lowest

evaluatedresponsive bidder in case of unavoidable circumstances with a

certificate to that extent.

(14) Contract should ordinarily be awarded to the lowest

evaluated bidder. However, where the lowest acceptable bidder against ad-

hoc requirement is not in a position to supply the full quantity required

quantity, as far as possible, be ordered from the next higher responsive

bidder at the rates offered by the lowest responsive bidder.

(15) Name of successful bidder may be placed on the web site or

the Notice Board of the Ministry.

3. PROCUREMENT OF SERVICES:

3.1 Classification of Services:

The services to be procured have been categorized into Category I, II

and III for the purpose of applying appropriate decision rules. In respect of

services included/to be included in Categories I, II and III, the decision rules

to be applied are as follows:

Category I: Routine Services - Service Test Quality and Minimum

Price.

Category II: High End Services - Weightage in the ratio of 65:35 for

quality and price respectively.

Category III: Unique Exceptional Services – Price limit to be fixed in

advance and not disclosed to the suppliers.

The indicative list of items included in the Categories I, II and III of

Services is in the Annexure.

3.2 Preparation and Evaluation of Tender Documents:

As provided under Rule 163 of GFR services of external

professionals, consultancy firms or consultants may be hired for a specific

job which is well defined in terms of content and time frame for its

completion or outsource certain services.

For procurement of services of Category I, bids may be obtained in

two parts. In case of Category I services, bids shall be called for qualifying

and financial bid. The illustrative proforma is enclosed at Annexure 2.2. In

this case, qualifying and financial bids shall be called for at the same in

separate sealed covers. In the first stage, only the qualifying bids shall be

opened by the Tender Evaluation Committee as constituted under these rules

as appropriate by the Head of Department. On the basis of the qualifying

bids, a statement of qualified tenderers shall be prepared. In the second

stage, the financial bids of such qualified tenders shall be opened by the

Tender Evaluation Committee and the job will be awarded to the lowest

tenderer.

For procurement of services of Category II, bids shall be on the basis

of technical and financial bids by giving weightage in the ratio of 65:35 for

quality and price respectively. For the purpose detailed procedure as

provided under Rules 165 to 177 of GFR should be kept in mind as to

identification of work, preparation of scope of work, estimating reasonable

expenditure, identification of likely sources, short listing of consultants,

preparation of Terms of Reference, Preparation and Issue of Request for

Proposals, Receipt and opening of proposals, late bids, evaluation of

technical bids, evaluation of financial bids of the technically qualified bids,

consultancy by nomination and monitoring the contract.

(1) Engagement of consultants may be resorted in situations

requiring high quality services for which there is no requisite

in-house expertise after obtaining the approval of the competent

authority.

(2) Scope of work should be prepared in simple and concise

language covering requirement, objectives and scope of the

assignment. The eligibility and prequalification criteria to be

met by the consultants should be clearly identified at this stage.

(3) Reasonable expenditure for engagement of consultant should be

ascertained based on the prevalent market conditions and

consulting other organizations engaged in similar activities.

(4) Where the estimated cost of the work is upto Rs.25 lakhs,

preparation of a long list of potential consultants may be done

on the basis of formal or informal enquiries from other

organizations involved in similar activities, chambers of

commerce and industry, association of consultancy firms etc.

(5) Where the estimated cost of the work or service is above Rs.25

lakhs, in addition to above, an enquiry seeking “Expression of

Interest” from consultants should be published in at least one

national daily and the Ministry’s web site. The website address

should also be given in the advertisement. Enquiry for seeking

Expression of Interest should include in brief, the broad scope

of work or service, inputs to be provided by the

Ministry/Department, eligibility and prequalification criteria to

be met by the consultants and consultant’s past experience in

similar work or service. The consultants may be asked to send

their comments on the objectives and scope of the work or

service projected in the enquiry. Adequate time should be

allowed for getting responses from interested consultants.

(6) On the basis of responses received from the interested parties as

above, consultants meeting the requirements should be short

listed for further consideration. The number of short listed

consultants should not be less than three.

(7) The Central Vigilance Commission vide its Office

Memorandum No. 12-02-1-CTE-6 dated 17.12.2002 laid down

that the following points must be kept in view while fixing the

eligibility criteria :

(A) For Civil/Electrical works :

(i) Average Annual Financial Turnover during the last 3

years, ending 31st March of the previous financial year,

should be at least 30% of the estimated cost.

(ii) Experience of having successfully completed similar

works during last 7 years ending last day of month

previous to the one in which applications are invited

should be either of the following:

a) Three similar completed works costing not less

than the amount equal to 40% of the estimated

cost, or

b) Two similar completed works costing not less than

the amount equal to 50% of the estimated cost, or

c) One similar completed work costing not less than

the amount equal to 80% of the estimated cost.

(iii) Definition of similar work should be clearly defined.

In addition to above, the criteria regarding satisfactory performance of

works, personnel, establishment, plant, equipment etc. may be incorporated

according to the requirement of the project.

(B) For Store/Purchase Contracts:

Prequalification/Post Qualification shall be based entirely upon the

capability and resources of prospective bidders to perform the particular

contract satisfactorily, taking into account their (i) experience and past

performance on similar contracts for last 2 years (ii) capabilities with respect

to personnel, equipment and manufacturing facilities (iii) financial standing

through latest ITCC, Annual Report (balance sheet and Profit and Loss

Account) of last 3 years. The quantity, delivery and value requirement shall

be kept in view, while fixing the PQ criteria. No bidder should be denied

prequalification/post qualification for reasons unrelated to its capability and

resources to successfully perform the contract. These instructions are also

available on CVC’s website, http://cvc.nic.in

O.M.No.12-02-1-CTE-6 dated 7th May, 2004 of the Central Vigilance

Commission stipulates that the prequalification criteria specified in the

tender document should neither be made very stringent nor very lax to

restrict/facilitate the entry of bidders. It is clarified that the guidelines issued

are illustrative and the organizations may suitably modify these guidelines

for specialized jobs/works, if considered necessary. However it should be

ensured that the PQ criteria are exhaustive, yet specific and there is fair

competition. It should also be ensured that the PQ criteria are clearly

stipulated in unambiguous terms in the bid documents.

Vide Office Order No.33/7/03 dated 9.7.2003, the CVC has reiterated

that whatever prequalification, evaluation/exclusion criteria etc. which the

organization wants to adopt should be made explicit at the time of inviting

tenders so that basic concept of transparency and interests of equity and

fairness are satisfied. The acceptance/rejection of any bid should not be

arbitrary but on justified grounds as per the laid down specifications,

evaluation/exclusion criteria leaving no room for complaints as after all the

bidders spend a lot of time and energy besides financial cost initially in

preparing the bids and, thereafter, in following up with the organizations for

submitting various clarifications and presentations.

CVC vide its Office Order No.68/10/05 dated 25.10.05 clarified the

following with regard to negotiations with the L-1 bidder:

(i) There should not be any negotiations. Negotiations if at all shall

be an exception and only in the case of proprietary items or in the

case of items with limited source of supply. Negotiations shall be

held with L-1 only. Counter offers tantamount to negotiations

and should be treated at par with negotiations.

(ii) Negotiations can be recommended in exceptional circumstances

only after due application of mind and recording valid, logical

reasons justifying negotiations. In case of inability to obtain the

desired results by way reduction in rates and negotiations prove

infructuous, satisfactory explanations are required to be recorded

by the Committee who recommended the negotiations. The

Committee shall be responsible for lack of application of mind in

case its negotiations have only unnecessarily delayed the award of

work/contract.

Further it has been observed by the Commission that at times the

competent authority takes unduly long time to exercise the power of

accepting tender or negotiate or retender. Accordingly, the model time

frame for according such approval to completion of the entire process of

Award of tenders should not exceed one month from the date of submission

of recommendations. In case the file has to be approved at the next higher

level a maximum of 15 days may be added for clearance at each level. The

overall time frame should be within the validity period of the

tender/contract. In case of L-1 backing out there should be re-tendering as

per extant instructions.

CVC vide its Office Order No.98/DSP/3 dated 24.12.2004 has issued

guidelines regarding participation of consultants in tender process. It has

made the following recommendations:

A firm which has been engaged by the PSU to provide goods or works

for a project and any of its affiliates will be disqualified from providing

consulting services for the same project. Conversely a firm hired to provide

consulting services for the preparation or implementation of the project, and

any of its affiliates, will be disqualified from subsequently providing goods

or works or services related to the initial assignment for the same project.

Consultants or any of their affiliates will not be hired for any assignment,

which by its nature, may be in conflict with another assignment of the

consultants.

3.2.1. Preparation of Terms of Reference :

As stated in Rule 170 of GFR, the Terms of Reference (TOR) should

include:

- Precise statement of objective

- Outline of the task to be carried out

- Schedule for completion of tasks

- The support or inputs to be provided by the

Ministry/Department to facilitate the consultancy

- The final output that will be required of the consultants

3.2.2 Preparation and Issue of Request for Proposal:

As detailed in Rule 171 of GFR, Request for Proposal is the

document to be used for obtaining offers from the consultants for

required work/service. It should be issued to the short listed

consultants to seek their technical and financial proposals. The

Request for Proposal should contain:

- A letter of Invitation

- Information to consultants regarding the procedure for

submission of proposal

- Terms of Reference

- Eligibility and Pre qualification criteria in case the same of has

not been ascertained through Enquiry for Expression of Interest

- List of key positions whose CV and experience would be

evaluated

- Bid evaluation criteria and selection procedure

- Standard formats for technical and financial proposal

- Proposed contract terms

- Procedure proposed to be followed for mid term review of the

progress of the work and review of the final draft report.

3.2.3 Receipt and Opening of Proposals:

As provided in Rule 172 of GFR, Proposals should be asked for from

consultants in ‘Two Bid’ system with technical and financial bids

sealed separately. The bidder should put these two sealed envelopes

in a bigger envelop duly sealed and submit the same by the specified

date and time at the specified place. On receipt the technical

proposals should be opened first at the specified date, time and place.

Late bids i.e. bids received after the specified date and time of receipt

should not be considered.

3.2.4 Evaluation of Technical Bids:

As under Rule 173 of GFR, Technical Bids should be analysed and

evaluated by a Consultancy Evaluation Committee constituted by the

Ministry or Department. The Committee shall record in detail the

reasons for acceptance or rejection of the technical proposals analysed

and evaluated by it. The Central Vigilance Commission vide Office

Order No.71/12/05 dated 9.12.2005 has advised that the members of

the Tender Committee should give an undertaking at the appropriate

time, that none of them has an personal interest in the

Companies/Agencies participating in the tender process. Any

Member having interest in any Company should refrain from

participating in the Tender Committee.

3.2.5 Evaluation of Financial Bids:

In accordance with Rule 175 of GFR, The Ministry or Department

shall open the financial bids of only those bidders who have been

declared technically qualified by the Consultancy Evaluation

Committee as per Rule 174 of GFR for further analysis or evaluation

or ranking and selecting the successful bidder for placement of the

consultancy contract.

3.2.6 In case of enhancement of scope of work, additional cost involved

may be estimated on the basis of additional man month required. The

same technical committee should evaluate the proposals. In such

circumstances it will be permissible to revise the TOR/scope of work

subject to a maximum of 25% through the life of the contract and

subject to maximum of 25% of increase in cost in case of

enhancement of work.

3.2.7 Procedure for Ranking:

For the purpose of ranking of bids called on two bid basis, weight

age is to given in the ratio of 65:35 to technical bid and financial

bid respectively. Firstly marks should be awarded on the basis of

technical evaluation done by the Committee taking into account the

technical evaluation criteria given in the bid document. The

highest mark should be taken as 100 and the resultant normalized

marks will be multiplied by 0.65. Similarly in case of financial bid,

lowest price quoted will be taken as 100 and the resultant normalized

marks will be multiplied by 0.35. The two scores, technical and

financial, will be added to determine the ranking of the bidders. The

successful bidder will be the one scoring the highest.

4. OUTSOURCING OF SERVICES :

Certain services may be outsourced in the interest of economy and

efficiency.

4.1 Identification of likely contractors:

A list of likely and potential contractors on the basis of formal or

informal enquiries from other Ministries or Departments and

organizations involved in similar activities, scrutiny of ‘Yellow

Pages’ and trade journals, if available, website etc.

4.2 Preparation of Tender:

The tender document should contain following details:

- Detail of the work or service to be performed by the

contractor;

- The facility and inputs which will be provided to the

contractor by the Ministry or Department;

- Eligibility and qualification criteria to be met by the

contractor for performing the required work/service;

- The statutory and contractual obligations to be complied

with by the contractor.

4.3 Invitation of bids :

4.3.1 For estimated value of work/service upto Rs.10 lakhs:

- Select eligible and capable contractor from the preliminary list

of likely contractors as identified above as per Rule 179 of

GFR, limited tender enquiry should be issued to them.

- Ask for their offers by a specified date and time etc. as

per standard practice.

- The number of contractors so identified for issuing limited

tender enquiry should not be less than six.

4.3.2 For estimated value of work/service above Rs.10 lakhs :

- To issue advertised tender enquiry by a specified date and

time as per the standard practice.

- Advertise at least in one popular largely circulated national

newspaper and website of the Ministry or the Department.

4.3.3 Late bids received after specified date and time of receipt

should not be considered.

4.3.4 Evaluation of bids:

Bids should be evaluated, segregated, ranked and successful bidder

should be selected.

4.3.5 Monitoring the Contractor:

Performance and conduct of the Contractor should be continuously

monitored throughout the life of the contract.

5. The above instructions are being issued for the guidance and

compliance by Ministry including its subordinate and attached offices and

autonomous organizations as applicable.

Sd/-

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Annexure

CLASSIFICATION OF GOODS

CATEGORY I CATEGORY II

All Items of Stationery*, Bags,

Folders etc.

Exceptional items of furnishing,

carpets etc.

Tiles, Vertical Blinds, Floorings etc. Paintings, architectural/interior

designing

Standardized Furniture(ISI/ISO

specifications wherever possible)

Antivirus software and other specific

software

Purchase/Hiring of Vehicles Media Programmes

Package Drinking Water Specialized Printing

Air Conditioners Exceptional Furniture

CFL bulbs, tubes etc. Crockery and Items of Cutlery

UPS and Invertors, Desert Coolers,

Pedestal Fans

Books and Journals

Batteries, Table Lamps, Pen Stands

Liveries

Toiletries

Routine crockery and items of

cutlery, flasks

Photostat Machines, Fax Machines

Computer and peripherals

* For getting optimal value for money specifications regarding brand/GSM

of paper can be introduced.

CLASSIFICATION OF SERVICES

CATEGORY I

(ROUTINE SERVICES)

CATEGORY II

(HIGH END SERVICES)

CATEGORY III

(UNIQUE EXCEPTIONAL

SERVICES)Conservancy, Office Support

Services, Routine Printing Jobs

Advertisements and

Sponsored Articles

Exceptional Legal

Services, Professional

Services etc.

Maintenance of Indoor Plants Consultancy Services Exceptional Hospitality

Courier Services Maintenance for

Critical Equipment

AMC for Cleaning of Building Printing Services

Transportation Legal Services

AMCs for Office Equipments,

Computers, Car Repairs,

Furniture, Printing

Routine Professional Services

Working Lunch with

predetermined ceiling (5 to 6

places to be identified and

Routine Hospitality)

No.28016/1/2003-GAGovernment of India

Ministry of Environment & Forests(Principal Accounts Office)

Dated : June 28, 2006.

OFFICE ORDER

GA Division makes procurement on the behalf of all the divisions of the Ministry. However, it has been observed that budgetary provisions under Minor Head “Office Expenses (OE) and Other Charges (OC)” are distributed amongst all the divisions. Consequently there are a lot of difficulties in managing the budget.

2.With the approval of Secretary (E&F) it has now been decided that all the budgetary provisions under OE and OC heads under different divisions will be placed at the disposal of the General Administration Division in the beginning of each year starting fiscal year 2006-07 and only Director (GA) designated as Head of the Department will exercise the powers of HOD in the Ministry of Environment and Forests.

3. NAEB and NRCD will continue to exercise the powers as already delegated.

(DEEPAK DAS)Chief Controller of Accounts

All Divisional Heads

Copy to :1. Dy. Economic Adviser, PC Division 2. PPS to Secretary (E&F)

3. PPS to DGF & SS 4. PPS to AS&FA

5. PPS to AS (CC)6. PPS to AS (PA)7. All Officers

4. OUTSOURCING OF SERVICES :

Certain services may be outsourced in the interest of economy and

efficiency.

4.1 Identification of likely contractors:

A list of likely and potential contractors on the basis of formal or

informal enquiries from other Ministries or Departments and

organizations involved in similar activities, scrutiny of ‘Yellow

Pages’ and trade journals, if available, website etc.

4.2 Preparation of Tender:

The tender document should contain following details:

- Detail of the work or service to be performed by the

contractor;

- The facility and inputs which will be provided to the

contractor by the Ministry or Department;

- Eligibility and qualification criteria to be met by the

contractor for performing the required work/service;

- The statutory and contractual obligations to be complied

with by the contractor.