Procurement Policy

The policy set forth in this document establishes standards and guidelines for the procurement
of supplies, equipment, construction, and services to ensure that they are obtained as
economically as possible through an open and competitive process, and that contracts are
managed with good administrative practices and sound business judgment.

Code of Conduct
A Code of Conduct shall govern the performance, behavior and actions of the Organization,
including Board members, employees, directors, volunteers, or agents who are engaged in any
aspect of procurement, including – but not limited to – purchasing goods and services;
awarding contracts and grants; or the administration and supervision of contracts.

1. No employee, officer, director, volunteer or agent of the Organization shall participate in

the selection, award or administration of a bid or contract supported by union, state
government or any other organization apart of Aasman foundation if a conflict of interest
is real or apparent to a reasonable person.

2. Conflicts of interest may arise when any employee, officer, director, volunteer or agent of
the Organization has a financial, family or any other beneficial interest in the vendor firm
selected or considered for an award.

3. No employee, officer, director, volunteer or agent of the Organization shall do business

with, award contracts to, or show favoritism toward a member of his/her immediate
family, spouse’s family or to any company, vendor or concern who either employs or has
any relationship to a family member; or award a contract or bid which violates the spirit
or intent of Union, State and local procurement laws and policies established to maximize
free and open competition among qualified vendors.

4. The Organization’s employees, officers, directors, volunteers or agents shall neither solicit
nor accept gratuities, gifts, consulting fees, trips, favors or anything having a monetary
value from a vendor, potential vendor, or from the family or employees of a vendor,
potential vendor or bidder; or from any party to a sub-agreement or ancillary contract.

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5. As permitted by law, rule, policy or regulation, the Organization shall pursue appropriate
legal, administrative or disciplinary action against an employee, officer, director, volunteer,
vendor or vendor’s agent who is alleged to have committed, has been convicted of or pled
no contest to a procurement related infraction. If said person has been convicted,
disciplined or pled no contest to a procurement violation, said person shall be removed
from any further responsibility or involvement with grants management, procurement
actions or bids, consistent with State or Federal policy.

Solicitation and Competition

All procurement transactions will be conducted to provide – to the
Aasman “Best Practice”
maximum extent possible – free and open competition among
For procurements
suppliers. The Organization must begin with an analysis of the under ₹10000/-, the
need for the procurement, to avoid the purchase of unnecessary decision may be
made by the
items and services (this may include an examination of lease versus
procurement
purchase alternatives in the case of goods and procurement of manager and above
services on the basis of one time subscription and regular interval than the amount
₹10000/ purchase
subscription). The purchaser must then identify and clearly specify order must be
standards for the goods or services desired, and seek competitive approved by Chief
Finance Officer
offers where possible to obtain the best possible quality at the
best possible price.

In general:
 Some form of cost or price analysis shall be made and documented in the procurement
files in connection with every procurement action. Price analysis may be accomplished in
various ways, including the comparison of price quotations submitted and market prices,
together with discounts.
 For procurements competitive bids will be
utilized and requests for these bids will be
Aasman “Best Practice”
written in a way that does not restrict
For procurements of more than the competition. (A clear and accurate
amount of 100000/- must obtain a prior
description of the technical requirements for
joint approval from the CFO and Borad of
Directors of Aasman Foundation the material, product or service to be
However the board of director approval procured; all requirements which offerors
may be replaced with the approval of
must fulfill; and all other factors to be used
Managing Director of Aasman
Foundation in evaluating bids or proposals.)
Procurement files must include the
following:

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 - Basis for contractor selection.
- Justification for lack of competition when competitive bids or offers were not
obtained.
- Basis of award cost or price.
Aasman “Best Practice”
 Whenever possible, the Organization must engage in
For procurements over
affirmative efforts to utilize small businesses, minority- ₹10000/, an open competition
owned firms, and women's business enterprises. must take place.

Selection
Price should be one of the factors in the evaluation of responses, but the Organization is not
required to take the lowest price if other factors are important to the decision.
 There should be an objective method for selection, and any factors for evaluation and
selection should be listed in the procurement documents.
 Awards shall be made to the bidder or offeror whose bid is responsive to the solicitation
and is most advantageous to the Organization (price, quality and other factors
considered).
 A bid may be rejected when it is in the Organization’s interest to do so.

Documentation
At a minimum, procurement records must clearly show how the Organization:
 Executed price sampling for small purchases;
 Selected the method of procurement and the type of contract to be used;
 Determined which bids or proposals to accept and which to reject; and
 Determined the basis for the contract cost or price.

Contract Administration
The Organization has an overall system of contract administration to ensure proper oversight
and management of procurement actions. The Organization is responsible for evaluating
contractor performance and documenting, as appropriate, whether contractors have met the
terms, conditions and specifications of the contract. This may include progress inspections,
interim products, inspection of goods delivered, and other such methods that provide
assurance that the goods or services purchased are being delivered within the scope of the
contract.
The Organization’s contract administration system must ensure that:
 The method of procurement is documented and records maintained for five years after
final payment is made;
 All activities are carried out and costs are incurred in compliance with applicable
requirements; and
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 Before payment is made, services performed are adequate and consistent with the contract
scope of services.