TECHNICAL EDUCATION QUALITY IMPROVEMENTPROGRAMME(TEQIP) PHASE IIIPROCUREMENT MANUALMarch 2017GOVERNMENT OF INDIADEPARTMENT OF HIGHER EDUCATIONMINISTRY OF HUMAN RESOURCE DEVELOPMENTContents of this document are subject to change.
PIPPMSSPOPPSDRSPIUBoard of GovernorsCentrally Funded InstitutionCost Insurance FreightCost Insurance PaidCentral Public Works DepartmentDelivery Duty PaidDelivery Duty UnpaidDepartment of Economic AffairsThe Development GatewayDirector General of Supplies & DisposalsDelivery ChallanEarnest Money Deposit (Bid Security)Ex Work/ Ex FactoryGeneral Procurement NoticeInternational Bank for Reconstruction andDevelopmentInternational Development AssociationInstitutional Development PlanInstitution Project Monitoring UnitIndian National RupeeJoint VentureLearning ResourcesMinistry of Human Resource DevelopmentMemorandum of UnderstandingNational Project DirectorNational Project Implementation UnitProject Appraisal DocumentProject Implementation PlanProcurement Management Support SystemPurchase OrderProcurement PlanSpecial Drawing RightsState Project Implementation UnitTEQIPTechnical Education Quality Improvement ProgrammeToRUNDBUSDWBWBR NoTerms of ReferenceUnited Nation’ Business DevelopmentUnited States Dollar (US )The World BankWorld Bank Reference Number
CONTENTSS.No.DESCRPTIONPAGE NOPrefaceI.The Project . 1II.Procurement Arrangements . 2III.Procurement of Goods & Works . 7IV.Procurement of Services . .27
Procurement ManualPREFACEThe “Procurement Manual” provides the essential information and brief step-by-stepprocedures for procurement of goods, works and services. This document is intended toguide the procurement officials directly involved in the procurement activities. It alsointends to help in understanding the procurement processes and to achieve uniformity inprocurement processes followed under the project. The rights and obligations of thepurchaser and the contractor of goods and works will be governed by the tenderdocuments and by the contracts signed by the purchaser with the contractor and not bythe guidelines stated in this document.However the Procurement Manual is only a guideline and the procurement of all Goods,Works and Services under the Project will be carried out in accordance with the WorldBank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits& grants by WorldBank borrowers" dated January 2011, as updated in July 2014 (“ProcurementGuidelines”) and "Guidelines: Selection and Employment of Consultants Under IBRD Loansand IDA Credits & grants by World Bank borrowers" dated January 2011, as updated inJuly 2014 (“Consultant Guidelines”) as per the Financial Agreement agreed between theGovernment of India and the World Bank. In event of any discrepancies, the World Bankguideline as stated above shall supersede the Procurement Manual.
Procurement ManualI.THE PROJECTThe Project* TEQIP III is part of the long term Technical Education Quality ImprovementProgramme and aims to scale up & support ongoing efforts of the GoI to improve qualityof technical education and enhance existing capacities of the institutions. TEQIP is beingassisted by the World Bank and GoI has received a Credit from the InternationalDevelopment Association in various currencies towards the cost of project. The Projectwill focus on the following objectives:PROJECT DESIGNComponent 1: Improving Quality and Equity in engineering institutes in focus statesSub component 1.1Institutional Development Grants to Participatinginstitutes.Sub component 1.2Widening Impact through ATUsSub component 1.3Twinning Arrangements to Build Capacity and ImprovePerformance of Participating Institutes and ATUsComponent 2: System-level initiatives to strengthen sector governance and performance*ProjectImplementation Plan (PIP) shall be referred for details of the project TEQIP III.Page 1
Procurement ManualII. PROCUREMENT ARRANGEMENTSProcurement under the project will be processed and monitored through ProcurementManagement Support System (PMSS), a web based software system specially developedfor TEQIP III.PROCUREMENT MANAGEMENT SUPPORT SYSTEM (PMSS)PMSS will reduce variance in procurement processing and ensure adherence with agreednorms and guidelines with following measures, It will capture end-to-end procurement process flow to standardizing theprocurement under project.It will provide information on specifications of items, maintain database ofmanufacturers/ suppliers.It will generate advertisement details, Standard Bidding Documents (SBDs), BidEvaluation Report (BER), Purchase Order (PO), payment details etc.It will provide contract management functions like identifying contractmilestones (warranty period, performance guarantee, delivery schedule etc),review supplier performance against contract etc.It will meet MIS requirements for documentation/ report generation requirementsof all the usersIt will also generate print outs in the standard formats at every stage in unitizedforms like daily, monthly and in the integrated/ aggregated forms like quarterly,half yearly, annual etc.PROCUREMENT PLANThe project entities shall prepare detailed and comprehensive procurement plancovering all Goods, Works and Services procurement for the duration of .to . It shall be submitted for prior reviewed by NPIU/ the World Bankbefore implementation by the project entities through PMSS. NPIU/SPIUs scrutinizes theinstitution Procurement Plan for (i) Ensuring the World Bank norms are complied with (ii)Ensuring that the items are permissible under the project.REVISION/ UPDATION OF PROCUREMENT PLANThe procurement plan shall be revised/ updated annually, as required, to reflect theactual project implementation needs and improvements but within the framework of theWorld Bank guidelines.The revision/updation in finalized Procurement Plan can be carried out at institutionlevel with the approval of respective BoGs.Page 2
Procurement ManualValue Thresholds & Review ArrangementsCategoryValue per contract*Procurement MethodGoods US 2,000,000National Competitive Bidding (NCB) US 3,000,000 US 2,000,000National Competitive Bidding (NCB)MinorItemsWorksReviewPriorPost US 100,000ShoppingPostProprietary Equipment US 50,000Proprietary Equipment US 50,000 US 1,000Direct ContractingPriorDirect ContractingPostDirect ContractingPost US 10,000,000 US 40,000,000 US 10,000,000National Competitive Bidding (NCB)PriorNational Competitive Bidding (NCB)Post US 100,000ShoppingPost US 1,000Direct ContractingPost US 1000,000Prior US 300,000Quality and Cost Based Selection (QCBS)/ FixedBudget Selection (FBS)/ Least Cost SelectionQuality and Cost Based Selection (QCBS)/ FixedBudget Selection (FBS)/ Least Cost SelectionConsultant’s Qualification Based Selection (CQS) US 50,000Single Source Selection (SSS)Prior US 50,000Single Source Selection (SSS)Post US 300,000Individual Consultant Selection (ICC)Prior US 300,000Individual Consultant Selection (ICC)Post US 1000,000PostPostServices* The conversion rate should be taken as 1 USD Rs 67(as prevailing at the time ofProcurement plan preparation or decision)*For threshold calculation value of US to be taken as prevailing at the time of decision and inclusive ofapplicable taxes.#Arrangements for review by the World Bank.Page 3
Procurement ManualPRIOR REVIEW ARRANGEMENTSThe World Bank will prior review the following contracts: Works: All contracts more than or equal to US 10 million equivalentGoods: All contracts more than or equal to US 2 million equivalentServices (other than consultancies) and IT systems: All contracts more than orequal to US 2 million equivalent;Consultancy services: US 1000,000 equivalent for firms and US 300,000equivalent for individuals.All SSS or direct contracts more than or equal to US 50,000 equivalent.Services contracts shall be governed by the following provisions, Services contracts expected to cost more than US 300,000 shall be advertised inUNDB online and dgMarket in accordance with other provisions of para 2.5 of theConsultants Guidelines.Hiring of individual consultants through competition shall be restricted to US 300,000 or less and hiring through Single Source Selection shall be restricted toUS 50,000 or less. All contracts of Individual Consultants shall be subjected topost review by the World Bank.Terms of Reference (ToR) for all consultant contracts shall be furnished to theBank for its technical clearance and No Objection.The shortlist for Services contracts expected to cost less than US 800,000 maycomprise entirely national consultants in accordance with other provisions ofpara 2.7 of the Consultants Guidelines.In Single Source Selection, per day consultation fee shall not be more than US 100 beyond which prior approval of BOG of the Institution is required.Notes:DGS&D rate contracts may be used as framework agreement (FA) provided: 23Use of DGS&D rate contracts as FA must be reflected on the procurement plan agreed by the Bankfor particular goods.Before issuing the purchase order, the implementing agency will carry out a price analysis on thespecific good that is intended to be purchased. If after this due diligence the implementing agencyconcludes (and Bank agrees) that the DGS&D rate contracts are more advantageous, DGS&D ratecontracts may be used as FA.To meet the Bank's requirements for right to audit and F&C, these clauses may be included in thePurchase Orders (in case the purchasers are directly placing the purchase orders to DGS&D ratecontract holders). On the other hand, if indent is placed through DGS&D, the Purchaser has theoption to sign a separate undertaking with DGS&D rate contract holder, where Bank’s right to auditand F&C clauses could be mentionedMinor items shall cover consumables such as laboratory & workshop supplies, stationary, officeitems etc.Page 4
Procurement ManualPROCUREMENT STEPSThe flow chart given below broadly depicts the essential steps in procurement process,Establish a Purchase Committee withthe approval of “BoG”Group the items/ services to bepurchased in to a Package and prepareProcurement Plan with approval of “BoG”Review and approval of 1st ProcurementPlan by NPIU through SPIUsAdvertisement/ Letter of InvitationSelect package from Procurement Planand decide appropriate methodDirect Contracting forShopping for Goods/ WorksGoods/ Works and SSS forServicesIssue Purchase Order/Sign Contractand LCS/ FBS/ CQS forServices”Select from min. three quotations,and Issue Purchase Order/Sign ContractNCB/ ICB/ LIB forGoods/ Works and QCBSfor ServicesSelect a bidder (orshortlist) andSign ContractImplement Contract/ Receive itemsUpdate Procurement Plan & identify items for thenext procurementPage 5
Procurement ManualDISCLOSUREFor all procurements, information on pre-qualification and award of contract shallbe posted on the institutional website for two week.PROCUREMENT AUDITPost review of minimum 20% all the contracts under the Project shall be conducted bythe SPIUs/ NPIU as per the laid down procedures. All documents related to procurementshould be filed and kept systematically and safely. In addition, the World Bank will alsohave the right to conduct post review of the contracts. The concerned authorities willbe required to make available all relevant documents to the World Bank, as and whenrequired.Page 6
Procurement ManualIII.PROCURMENT OF GOODS & SERVICESPROCUREMENT METHODS International Competitive Bidding (ICB)Limited International Bidding (LIB)National Competitive Bidding (NCB)ShoppingDirect Contracting INTERNATIONAL COMPETITIVE BIDDING (ICB)ICB is generally adopted where supplies cannot be met from indigenoussources and need import, and/ or foreign firms are expected to participateresulting in more competition. Invitation for bids (IFBs) for ICBs shall be published in daily nationalnewspaper with wide circulation all over the country, at least in oneenglish and one regional language daily.Apart from wide publicity nationally, advertisement of invitation for bids(IFBs) shall be published in United Nation’s Development Business (UNDB)/dg Market online and project website.Use of the World Bank Standard Bid Documents.Sale of bid documents should start only after publication of invitation ofbids in newspapers and UNDB/ dg Market.Bidding period shall be 45 to 90 days from the start of the sale of the biddocuments.Domestic preference shall be allowed to domestic bidders with respect toforeign bidders as mentioned in the bid documents.Other procedures for ICB will broadly be same as that of NationalCompetitive Bidding (NCB) in respect of bid opening, bid evaluation,notification & publishing of award of contract, complaint redressal etc. LIMITED INTERNATIONAL BIDDINGLimited International Bidding (LIB) is essentially ICB by direct invitationwithout open advertisement. It may be an appropriate method ofprocurement where (a) there are only limited numbers of suppliers, or (b)other exceptional reasons may justify departure from full ICB procedures.Under LIB, borrowers shall seek bids from a list of potential suppliers broadenough to assure competitive prices, such list to include all suppliers all overthe world. Domestic preference is not applicable in the evaluation of bidsunder LIB. In all respects other than advertisement and preferences, ICBprocedures shall apply, including the publication of award of contract inPage 7
Procurement ManualUNDB online and in dg Market and use of the World Banks Standard Biddingdocuments. NATIONAL COMPETITIVE BIDDING (NCB)NCB also known, as Open Tender is the competitive bidding procedurenormally used for procurement of goods and works. The procedure shallprovide adequate competition among participants in order to ensurereasonable prices. The procurement steps for NCB broadly consist of thefollowing activities:STEP 1: The tender documents shall furnish all information necessary for aprospective bidder to prepare a tender for the goods/ works to beprovided.The bid document should invariably contain standard bidding and contractconditions to make it self-explanatory. Some of the mandatoryrequirements in a bid document include- Invitation for bids (IFBs),Instructions to Bidders (ITBs), Contract Data including Bill/ Schedule ofQuantities (BOQ), General Terms & Conditions, Award Criteria,Notification of Award, Execution of Contract, Quality Control, PaymentTerms, Taxes and Duties, Completion Certificate, Warranty/ DefectLiability, Drawings, Dispute Resolution, Arbitration, Force Majeure, etc.Bill/ Schedule of quantities (BOQ) will indicate the description of items tobe provided along with quantities and the phased manner in which thegoods/ works are required to be delivered or constructed.Bidding documents should state clearly whether the bid prices will befixed or price adjustments will be made to reflect any changes in majorcost components of the goods/ works.STEP 2: PREPERATION OF TENDER DOCUMENTADVERTISEMENTTimely notification of bidding opportunities is essential in competitivebidding. Invitations shall be published in daily newspapers with widecirculation all over India, at least in one national english and one regionallanguage daily.The advertisement should also be placed in institutional website.The minimum time given for submission of bids shall be not less than 30days from the date of sale of bid document.The last date and time of sale and receipt of bid document should beclearly indicated in the notification/ advertisement.Page 8
Procurement ManualSTEP 3:ISSUE OF BID DOCUMENT Sale of tender documents should begin only after the publication ofnotification for tender in newspapers. Tender documents should be made available to all who seek them afterpaying the requisite fees, if any, regardless of registration status and theyshould be allowed to bid. However, the request should be in writing alongwith the requisite fee of the tender/ bid, if any.Bidding documents will besold till one day prior to the opening of the tenders.Tenders can be sold from different places but the bid/ tenders shall bereceived at one place only, to avoid problems arising out of late/delayedtender submission.Tender documents can also be made downloadable from Institute website.However the downloaded tender documents must be submitted withrequisite tender fees in the form of bank DD without which the tendershall be rejected summarily. STEP 4: OPENING OF BIDSThe time, date and venue for the tender opening shall be mentioned inthe IFB and bid documents.Tenders/bids should normally be opened immediately after the deadlineof time fixed for submission on the same day.Tenders shall be opened in public. The bidders or their representativesshall be allowed to be present at the time of opening of bids.All tenders received should be opened. No bid should be rejected at thetime of bid opening except for late tenders. Late tenders shall bereturned to the bidders unopened.The name of the bidder and total amount of each bid along with importantconditions like excise duty, sales tax, delivery terms, delivery period,special conditions and discounts, if any, shall be read out at the time ofbid opening. Withdrawal notices and modifications to the tender shall beread out first followed by the tender of the bidder.Minutes of bid opening must be prepared by bid opening officials andshould be signed by all members present including bidders.Any kind of discounts offered shall be mentioned in the bid openingdocument clearly.STEP 5:BID EVALUATION AND COMPARISIONPage 9
Procurement Manual The criteria to be used in the evaluation of tenders and the award ofcontracts shall be made known to all bidders and not be appliedarbitrarily.The purpose of tender evaluation is to determine substantially responsivetender with the lowest evaluated cost, but not necessarily the lowestsubmitted price, which should be recommended for award.The bid/ tender price read out at the bid opening shall be adjusted at thetime of evaluation with correction for any arithmetical errors for thepurpose of evaluation with the concurrence of the bidder/ contractor.Where there is a discrepancy between the rates in figures and in words,the rate in words will prevail. Where there is a discrepancy between theunit and the line item total resulting from multiplying the unit rate by thequantity, the unit rate will prevail.The conditional discounts offered by the bidder shall not be taken intoaccount for evaluation. This however does not apply to cross-discounts.The purchaser shall prepare a detailed report on the evaluation andcomparison of tenders setting forth the specific reasons on which therecommendation is based for the award of the contract.STEP 6: AWARD OF CONTRACTImplementing agency shall award the contract within the period to allaspects to the bidders who has the necessary technical capability andfinancial resources and whose bid is substantially responsive to the tenderdocuments and has the lowest evaluated cost.Single bids should also be considered for award, if it is determined thatpublicity was adequate, bid specification/ conditions were not restrictiveor unclear and bid prices are considered reasonable in comparison toestimated price.P a g e 10
Procurement Manual SHOPPINGThe following consideration should be kept in view for adopting thisprocedure: Shopping is a Procurement method based on comparing price quotationsobtained from several national suppliers, usually at least three to ensurecompetitive prices.Shopping is intended to be a simple an
The “Procurement Manual” provides the essential information and brief step-by-step procedures for procurement of goods, works and services. This document is intended to . Review and approval of 1st Procurement Plan by NPIU through SPIUs Advertisement/ Letter of Invitation Select package from Procurement Plan
Procurement Procedures Procurement 2.4 Procurement authority 38 2.5 Modification of individual procurement authority 38 2.5.1 Delegation of procurement authority 38 2.5.2 Delegation of procurement authority to UNFPA officers at headquarters 38 2.5.3 Delegation of procurement authority to field office managers 41
Strategic Procurement for Innovation Vassilis Tsanidis Dr.Jur f. National Expert on Innovation Procurement in the EU A. STRATEGIC PROCUREMENT –2 Innovation Procurement Green/Circular Procurement Social Procurement . 10-11-2020 2 EU Public Procurement Directives (2014/24 , 2014/25)
Procurement For GoJ purposes, Public Sector Procurement is the acquisition of goods, services and works, by any method, using public funds, and executed by the Procuring Entity or on its behalf. Procurement Contract A contract between the Procuring Entity and a Broker/Insure resulting from procurement proceedings. Procurement Officer A person with the authority to conduct procurement .
in the MCC Procurement Guidance Note: MCA Non-PPG Covered (NPC) Purchases that are covered by guidance provided by the Procurement Operations Manual (POM) and Procurement . 1 The MCC Program Procurement Guidelines are based upon the World Bank’s Guidelines: Procurement Under IBRD Loans and IDA Credits and it has been adapted to reflect MCC .
Procurement Procurement is defined by the National Procurement Act as the acquisition or disposal by purchase, rental, lease, hire, purchase, licence, tenancy, franchise, or any other contractual means of any type of goods works or services or any combination of them. Procurement Thresholds Thresholds as outlined in Section 26 of the National
Established 2013 Yes Yes SP/ATI: Section 508 Standards Guide (posted to the ATI Procurement website) SP: EIT Procurement Plan . 1.2 Yes Request the Chancellor’s Office provide a list of PeopleSoft procurement codes that fit the EIT categories. . CSU ATI Procurement Community of Practice Monthly ATI Ad Hoc Procurement Sub Committee Bi-Weekly
E-Procurement Systems in perspective The benefits of e-Procurement have been verified by many leading companies worldwide, and e- Procurement is a significant tactic in most companies' e-Business strategies (Crook and Kumar, 2008). The consensus is that e-Procurement benefits organizations with respect to procurement cost and process
defining the term e-procurement (Vaidya, Yu, Soar & Turner, 2003). While the terms 'e-procurement' and 'e-purchasing' have been used synonymously in many jurisdictions in an attempt to prove their involvement in the e-procurement revolution (m), the term 'purchasing' has a narrower scope. E-procurement refers to the use of internet-