Purchase Procedure

1. INDENTING AND APPROVAL OF PURCHASE

1.1

Indents covering the requirements for equipment, components, raw materials and all types of items/materials/services needed by the Divisions/Units of C-DAC, Mumbai shall be prepared in the format prescribed and shall be sent to the section.

1.2

Indents will have to be approved by the authorities in the organisation to whom appropriate powers have been delegated. The officer approving the indent should satisfy himself that he has the authority to approve the indents to the extent of the estimated value of the items indented.
(The competent authority for approving the indents and the limits are listed on the last page of this document).

1.3

Officers empowered to approve indents shall ensure maximum possible consolidation of their requirements against each item while raising indents.

1.4

Indents for items of equipment and items of a proprietary nature (ie, when a particular make or model of an equipment or product of a particular manufacturer is indented) should be supported with sufficient technical justification for choice of the proprietary make. Such indents shall be approved by only those officers who are delegated specific powers by the Director for proprietary purchases of items.

1.5

The Centre shall notify from time-to-time the names of various officers empowered to approve indents and purchases.

1.6

The purchase section will ensure that approval by the competent authority in the respective Divisions / Units is available in the file before purchase contracts are entered in to.

FOREIGN PURCHASE

1.7

The indents for foreign purchase where foreign exchange is involved and the CIF value is less than US$ 500/- shall be signed by the indentor, and approved by the competent authority in the Division authorised for this purpose. Before release of any order in which foreign exchange is involved, authorization of the Director, C-DAC, Mumbai, for importing the indented material should be taken.

1.8

The indents for foreign purchases where the foreign exchange is involved and the CIF value is more than US$.500/-, shall be signed by the indentor, recommended by the competent authority authorised for this purpose in the Division and approved by the Director, C-DAC, Mumbai.

2. MODE OF PURCHASE

2.1.1

On receipt of an indent in the purchase section, the officer in charge of purchase after satisfying that the indent is complete in all respect, shall decide the mode of purchase taking in to account the history sheets and such other relevant data as may be available in respect of the item.

2.1.2

In deciding the mode of purchase in respect of imported items, the CIF value shall be the criterion for applying the prescribed financial limits.

2.1.3

The mode of purchases are :
a) Open tender (See Sec. 2.2.1)
b) Limited Tender for items above Rs.20,000/- (See Section 2.3.5)
c) Limited Tender for items below Rs.20,000/- (See Section 2.3.3)
d) Proprietary purchase (see Sec.1.4)
e) Written enquiry (see Sec. 2.3.6)
f) Telephonic Enquiry (see Sec.3.2)
g) Cash purchase ( see Sec.3.1.1)

2.1.4

Approved List: The Centre shall maintain a computerized list, category-wise, of suppliers to be contacted for competitive bidding

2.2.1

OPEN TENDER/PUBLIC TENDER

2.2.2

Purchase shall normally be made inviting Open Tenders through Newspaper Advertisements in all cases where the estimated value of an item or items of a similar nature covered by an indent to be purchased at a time exceeds Rs.1,00,000.00 (Rupees one lakh only).

2.2.3

The Officer in-charge of purchases, shall have powers to fix the tender fee in respect of tender documents to be sold against Public Tenders invited by the purchase section, keeping in view the estimated value of items to be purchased as well as the man-hours and materials spent in the preparation of tender specifications and drawings.

2.2.4.

The 'Open Tender' or 'Public Tender' system adopted as the mode of purchase even where the estimated value of an item of similar nature covered by an indent to be purchased at a time exceeds Rs.1,00,000/- (Rupees One Lakh only) in the following circumstances, in consultation with the Chief Accountant and competent authority approving the indent, with the prior approval of the Director, C-DAC, Mumbai, provided detailed justification for dispensing with the issue of Open Tender is recorded.
a) when the requirement of the Centre is urgent and the desired procurement deadline cannot be met if Open Tenders are invited through newspaper advertisements,
b) when the sources of supply are definitely known and limited.
c) when it is not in the public interest to call for open tenders. This list will include any parties who request inclusion in writing, unless they are denied inclusion on grounds noted in writing, with the written consent of Director, C-DAC, Mumbai. Such grounds can include the statement that an adequate (30) number of suppliers of repute are already on the approved list. The Purchase Section will ensure that the list contains names of reputed dealers to generate satisfactory competition. A supplier, or contractor, who fails to perform satisfactorily can be removed from the approved list with the written consent of the Director.
d) when items are reserved for purchase from a specified category of industry as per the policy decision of the Government or the C-DAC, Mumbai Council
e) when the field has already been explored by open tender for similar items during the period of about six months preceding the date of indent
f) any other reason which would undoubtedly justify the course of action.
In such cases, depending upon the estimated value of items, the field should be covered adequately contacting as many suppliers as possible

2.3.1

LIMITED TENDER

2.3.2.

Purchase shall normally be made by 'LIMITED TENDER ' in case where the estimated value of an item or items of similar nature covered by an indent to be purchased at a time exceeds Rs.5,000/- but not exceed Rs.1,00,000/- (Rupees one lakh only).

2.3.3

Limited Tender (Rs.5000- Rs.20,000)

Where the estimated value of an item or items covered by an indent exceeds Rs.5,000/- and is below Rs.20,000/-, the purchase section shall send atleast seven enquiries to the suppliers in the approved list (unless the source is less than seven).

2.3.4

The enquiry letters shall be sent by registered post with acknowledgment due, or by hand delivery with a standard acknowledgment form which shall be brought back by the bearer, with due acknowledgment.

2.3.5.

Where the estimated value of an item or items covered by an indent exceeds Rs.20,000/- and is less than Rs.1,00,000/-, the purchase section shall send enquiries atleast to ten suppliers in the approved list (unless the source is less than ten).
The enquiry letters shall be sent as specified in Sec. 2.3.4.

2.3.6

WRITTEN ENQUIRY

Where the estimated value of an item or items covered by an indent is less than Rs.5000/-, the purchase section shall send at least five enquiries to the suppliers in the approved list (unless the number of known sources are less than five).

2.3.7

The enquiry letters in case of 2.3.6 shall be sent by post under certificate of posting, or by hand delivery with a standard acknowledgment form which shall be brought back by the bearer, with due acknowledgment.

2.4.1.

SINGLE TENDER

2.4.2

A single tender may be invited in respect of the following cases:
a) when an item or items covered by an indent is available from only a single source eg. where the items indented are spare parts attachments, accessories etc. required for an existing equipment or the item indented are a monopoly product of a single manufacture etc.
b) when a item or items covered by an indent is of a proprietary nature and is recommended to be purchased from a single source with sufficient technical reasons for a choice of the proprietary make with the approval of the competent authority as provided in sec 1.4.

2.5

RATE AND RUNNING CONTRACTS

2.5.1

In respect of items for which there is regular and recurring demand, the price of which is not subject to appreciable fluctuation and in cases of common user items required by the Divisions, the purchase section shall conclude Rate or Running Contracts based on a suitable enquiry procedure (subject to relevant limitations) for an appropriate period not exceeding one year at a time.

2.5.2

Where valid rate contracts concluded by the purchase section exist, the user divisions concerned should make use of such contracts if the delivery schedule prescribed by the indentors can be met by supplies against Rate Contracts. However, there will be no objection in going for separate tender operation if the officer in charge of purchases feels so. In such cased, the officer should make suitable notings in the purchase file as to the reason for taking such a step.

2.6

EMERGENCY REQUIREMENTS

2.6.1

In case of emergency requirements relating to any of the operating equipment under C-DAC, Mumbai, the Director may at his discretion decide and authorise a mode of purchase in deviation to the normal procedure. Such deviations should, however, be considered only against indents specifically marked as 'operational emergency 'and recommended by the Head of the Unit/Division, and provided the value of the item or items of similar nature to be purchased at a time does not exceed Rs.1,00,000/- (Rupees one lakh only).

3. DISPENSATION OF TENDERING FORMALITIES

3.1

No tenders need be invited for the purchase of items in respect of the following cases and purchase shall be made by adopting any one of the following modes depending upon the circumstances and the estimated value of items covered by an indent.

3.1.1

CASH PURCHASE

When the value of an item or items of similar nature covered by an indent to the purchased at a time does not exceed Rs.1000/-, purchase can be made on a cash payment basis, subject to approval by authority specified for this purpose.

3.2

TELEPHONIC QUOTATIONS

3.2.1

where the value of an item of items of similar nature covered by an indent to be purchased at a time does not exceed Rs.5000/-, quotations by telephone can be obtained from atleast five firms (unless the source of supply is less than five).

3.2.2

Firms from whom telephonic quotations are obtained as per 3.2 above, shall be asked to confirm the same in writing.

3.2.3

Order for items for which telephonic quotations are taken should be finalized only on receipt of atleast three written confirmations.

3.3

REPEAT ORDER

3.3.1

If an indent is received for an item of identical to one for which an earlier purchase order has been placed, fresh tendering action may be dispensed with and purchase made on repeat order basis, that is, either by enhancing the quantity in the earlier purchase order or by placing fresh purchases order on repeat basis provided that:
a) the original purchase order was placed on the basis of competitive selection and not merely on the basis of on delivery time quoted.
b) the new purchases order is placed within six months from the date of issue of the original purchase order. For this purpose the purchase section should ascertain the validity of the offer.
c) the supplier concerned is willing to accept a purchase order on identical terms and conditions.
d) there is no downward trend of the prices since the original purchase order was placed which is to be certified by the indenter and/or officer in charge of purchases, and
e) the quantity to be ordered/purchased on repeat basis does not exceed 100% of the quantity as per the original purchase order.

4. PURCHASE POWERS

4.1

The officer in charge of purchase shall have full powers to approve and sign purchase orders/contracts and amendments thereto, subject to the purchase being approved by the specified authority.

4.2

Purchase orders/contracts and amendments thereto shall be approved and signed by the officer in charge of purchase.

5. PRE-AUDIT

5.1

No purchase orders exceeding Rs.5000/- in value, and amendments enhancing financial implications beyond Rs.5000/-, shall be released by the purchase section unless these are pre-audited and certified to be in order by the Accounts Section. Financial commitments in respect of the purchase orders above Rs.1000/- and below Rs.5000/- should be communicated to the Accounts Section. The purchase section will refer such cases after release of the purchase order to the accounts Section.

5.2

While pre-auditing and certifying the purchase orders, the officer concerned in the Accounts Section shall ensure, inter alia, that: a) approval of the competent authority exists for the purchase
b) in case of proprietary items, detailed technical justifications, where necessary for choice of the proprietary make are furnished by the indentor
c) sufficient funds are available
d) Head of Account to which expenditure is to be debited is correctly indicated
e) lowest quotation is accepted or satisfactory reasons have been recorded in writing for not accepting the lowest quotation
f) proper procedure for making purchases is followed
g) approval of the competent authority is obtained for deviations from the procedure and also from the standard terms and conditions of contract, where applicable
h) provision is made in the contract for safeguarding C-DAC, Mumbai property required to be entrusted to the contractor
i) payment terms have been correctly stipulated in the purchase order
j) when a purchase order is proposed based on a single offer received against a limited tender, adequacy of the coverage of field and reasonableness of the price are certified by the indentor/officer in-charge of purchase.

5.3

There will be post audit of purchase orders whose value does not exceed Rs.5000/- on a selective basis in a manner to be decided by the Chief Accountant.

6. PAYMENT OF BILLS

6.1

Payments against purchase orders placed by the purchase section shall be released by the accounts section as per the mode and terms and conditions stipulated in the purchase order. Bills/Invoices from the suppliers for payment against purchase orders placed shall be received in the purchase section and presented to the accounts section with proper certifications. The accounts section shall along with all necessary checks-
a) verify the bills/invoices received from the suppliers against the purchase orders, amendment to the purchase orders, receipt vouchers raised by the stores and other relevant records/communications, and
b) ensure that the prescribed certificates relating to excise duty, sales tax, bank guarantees for advance/progress payment, security deposits, performance bond etc., whenever asked for, are available before the payment is released.

7. DEVIATIONS

7.1

Director, C-DAC, Mumbai, shall have powers for approving and authorising any deviation from the purchase procedure including the standard terms and conditions of contract. However, the reasons for such deviations are to be recorded in writing by the Director in such cases.

7.2

The purchase of books and periodicals are not covered in the preceding pages. These will be handled by the staff member in charge of the Library as per instructions in force.

7.3

There will be no objection to a more rigorous procedure than necessary being adopted, for instance, if quotations are invited for items which could have been cash purchased.