Subject: - No.F.1/3/2024-PPD Goverment of India Ministry of Finance Department of Expenditure Procurement Policy Division 602, Lok Nayak Bhavan, Khan Market, New Delhi, 10.07.2024 OFFICE MEMORANDUM Amendment in General Financial Rules, 2017. It has been decided with the approval of Finance Minister to make following amendmenis in the General Financial Rules, 2017: iS | Existing Rule ‘Amended Rule | Ne. : 1. | Rulei33(1) Rulet33(1) / A Ministry or Department at its | A Minisiry or Department al ils | discretion may directly execute repair | discretion may directly execute repair | works estimated to cost up to Rupees | works estimated to cost up to Thirty Lakhs after following due | Rupees Sixty Lakhs afler following procecure indicated in Rule139, 159 & | due procedure indicated in Rule 139, 160. 159 & 160. 2. | Rule 133 (2) Rule 133 (2) A Ministry or Depariment may, at its discretion, assign repair works estimated to cost above Rupees thirty Lakhs and original’ minor works of any value io any Public Works Organisation (PWO) such as Central Public Works Department (CPWD), State Public Works Department, others——_Central Government organisations authorised to cary out civil or electrical works such as Military Engineering Service (MES), Border Roads Oreanisation (BRO), etc. or Ministry’ Department's construction wings of Ministries of Railways, Defence, Environment & Forests, Information & Broadcasting and Departments of Posts, and Space etc. A Ministry or Department may, af its discretion, assign repair works estimated to cost above Rupees Sixty Lakhs and original’ minor works of any value to any Public Works Organisation (PWO) such as Central Public Works Deparment | (CPWD), State Public Warks Department, others Central Government organisations authorised to carry out civil or electrical works such as Miltary Engineering Service (MES), Border Roads Organisation (BRO), etc. or Ministry’ Department's construction wings of Minisires of Railways, Defence, Environment & Forests, Information & Broadoasting and Departments of Posts, and Space Page 1 of 10 aS. | Existing Rule ‘Amended Rule ate. 3. | Rule 133 (3) As an alternative to 133(2), a Ministry or Department may award repair works estimated to cost above Rupees thirty Lakhs and original works of any value to (i) any Public Sector Undertaking set up by the Central or State Government to carry out civil or electrical works or (i) to any other Cental’ State Government organisation’ PSU which may be notified by the Ministry of Housing and Urban Affairs (MoHUA) for such purpose after evaluating their financial strength and technical compatence. For the award of work under this sub- tule, the Ministry’ Department shall ensure compeiition among such PSUs/ Organisations. This competition shall be essentially on the lump sum service charges to be claimed for execution of work. In exceptional cases, for award of work under (i) and ‘(i) above, on nomination basis, the conditions contained in Rule 194 would apply. The work under these circumstances shall also be awarded only on the basis of lump sum service charge. Rule 133 (3) ‘As an alternative to 133(2), a Ministry or Depariment may award repair works estimated to cost above Rupees Sixty Lakhs and original works of any value to: (i) any Public Sector Undertaking set up oy the Central or State Government lo cary out civil or electrical works or (i) 10 any other Central’ State Government organisation’ PSU which may be notified by the Ministry of Housing and Urban Affairs (MoHUA) for such purpese after evaluating their financial strength and technical competence. For the award of work under this sub- tule, the Minisiry/ Department shall ensure competition among such PSUs! Organisations. This competition shall be essentially on the lump sum service charges to be claimed for execution of work. In exceptional cases, for award of work under {jj and (i) above, on nomination basis, the conditions contained in Rule 194 would apply. ‘The work under these circumstances shall also be awarded oniy on the basis of lump sum service charge Ruie 139: Procedure for Execution of Works. ‘The broad procedure to be followed by a Ministry or Department for execution of works under its own arrangements shall be as under: - Rule 139: Procedure for Execution of Works. The broad procedure to be followed by a Ministry or Department for execution of works under its own arrangements shall be as under: - Page 2 of 10 -_Existing Rule ‘Amended Rule (iv) Open tenders will be called for works costing Rs. Five lakh to (iv) Open tenders will be called for works costing Rs. Ten lakh to Rs. Thirty lakh; Rs. Sixty lakh; (v) limited tenders will be called for | (v) Limited tenders will be called for works costing less than Rupees works costing less than Rupees five lakhs Ten lakhs 5, | Rule 149: Rule 149: j the | prospective Government e-Marketplace (GeM). Government of India has established Government —_¢-Marketplace (GeM) for common use Goods and Services. GeM SPV will ensure adequate publicity including periodic adverlisement of the items to be procured through GeM for the suppliers The Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or Services available on GeM. The credentials of suppliers on GeM shall be certified by GeM SPV. The procuring authorities will certify the reasonability of rates. The GeM portal shall be uliiized by the Government buyers for direct on- line purchases as under: {i) Up to Rs.25,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and detivery period. Note: In case of automobiles, procurement under this sub-rule is permitted without any ceiling fimit Above Rs.25,000/- and up to Rs.5,00,000/- through the Ge ail) by GeM SPV, The procuring j authorities will certify the reasonability of rates. The GeM portal shall be utlized by the Government e-Marketplace (GeM). Goverment of India has established the Govemment — ¢-Marketplace (GeM) for common use Goods and Services. GeM SPV will ensure adequate publicity including periodic advertisement of the items to be procured through GeM for the prospective suppliers. The Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or Services | available on GeM. The credentials of suppliers on GeM shall be certified Government buyers for direct on-line purchases as under: (i) Up to Rs.50,000/- through any | of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period. Note: In case of automobiles, procurement under this sub- tule is permitted without any ceiling litt. Above Rs.50,000/- and up to (iy Rs.10,00,000/- through the Page 3.0710S. | Existing Rule ‘Amended Rule No. Seller having iowest price GeM Seller having lowest price amongst the available sellers, of amongst the available sellers, at least three different of at least three different manufacturers, on Gel, manufacturers, on GeM, meeting the recuisite quality, meeting the requisite quality, spectfication and delivery period specification and delivery The tools for online bidding and period. The tools for online onfine reverse auction available bidding and online reverse on GeN can be used by the auction available on GeM can Buyer even for procurements be used oy the Buyer even for less than Rs. 5,00,000. procurements less than Rs, 10,00,000/-. (il), Above Rs.5,00,000% through the | (ii) Above Rs. 10,00,000/- through supplier having lowest price the supplier having lowest price meeting the requisite quality, meeting the requisite quality, specification and delivery period specification and — delivery afler mandatorily oblaining bids, period —afler_ ~—- mandatorily using online bidding or reverse ‘obtaining bids, using online auction tool provided on GeM. bidding or reverse auction tooi _ provided on GeM. 6. | Rule 154: Rule 154: Purchase of goods without | Purchase of goods without quotation quotation Purchase of goods upto the value of | Purchase of goods upto the value of Rs, 25,000 (Rupees twenty five | Rs. 50,000/- (Rupees fifty thousand) only] only on each | thousand) only on each occasion ‘occasion may be made without|may be made without inviting inviting quotations or bids on the | quotations or bids on the basis of a basis of a certificate to bo recorded | celtificate to be recorded by the by the competent authority in the | competent authority in the following following format. format. “I, am personally satisfied thal these | "l, am personally satisfied that these goods purchased are of the requisite | goods purchased are of the requisite quality and specification and have | quality and specification and have been purchased from a reliable | been purchased from a reliable supplier at a reasonable price.” supplier at a reasonable price." 7. | Rule 155: Rule 155 : Purchase of goods by Purchase Committee. {in case a certain item is not available ‘on the GeM portal,’ Purchase of goods costing above _[Rs.25,000 Purchase of goods by Purchase Committee. [in case a certain item is not available on the GeM portal’ Purchase of goods costing above Page 4 of 10 aapExisting Rule ‘Amended Rule (Rupees twenty five thousand only) and upto — Rs.2,50,000/- (Rupees two lakh and fitly thousand only] on each occasion may be made 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 commilles will survey the market to ascertain the reasonableness of rate, quality and specications 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 market rate and the supplier recommended is reliable and competent to supply the geods in question, and it is not debarred by Department of Expenciture or Ministry/ Department conserned.” [Rs.50,000/- (Rupees ‘Fifty thousand only) and upto Rs. 5,00,000/- (Rupees Five lakh only)] on each occasion may be made 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 commitice wil jointly recort a certificate as under: | "Certified that we, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase ere of the requisite specification and. quality, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question, and it is not debarred by Department of Expenditure or | Minisiry/ Department concemed." Rule 164: Advertised Tender Enquiry (i) Subject to. exceptions inoorporated under Rule 154, 155, 162 and 186, invilation to tenders by advertisement should be used for procurement of goods of estimated value of Rs. 25 lakhs (Rupees Twenty Five Lakh) and above, Advertisement in such cases should be given on Central Public Procurement Portat (CPPP) at | Rule 161: Advertised Tender Enquiry (i) Subject to. exceptions incorporated under Rule 154, 155, 162 and 166, invitation to | tenders by advertisement should be used for | procurement of goods of estimated value of Rs. 50 lakhs (Rupees Fifty Lakh) and above. Advertisement in such cases should be given on GeM as well_as_on GeM- Central Page 5 of 10[S| Existing Rule ‘Amended Rule No. www.eprocure.gov.in and on Public Procurement Portal GeM. An organisation having its (CPPP). An organisation ‘own website should also publish having its own website should all its advertised tender! also. publish alll its advertised enquiries on the website. tender enquiries on the fc ceeeemeina ies te sents |ieeee WODSitC. 9} Rule 162: Rule 162 Limited Tender Enquiry Limited Tender Enquiry (LTE) (i) This method may be adopted | ()) This method may be adopted Giiy when estimated value of the goods to be procured is up to Rupees Twenty five Lakhs. Copies of the bidding document should be sent directly by speed post) registered post/ courier’ email to firms which are borne on the list of registered suppliers jor the goods in question as referred under Rule 150 above. The number of supplier firms in Limited Tender Enquiry should be more than three. Efforts should be made ‘io identify a higher number of approved suppliers to obtain more responsive bids on competitive basis. Further, an_ organisation should publish its limited tender enquiries on Central Public Procurement Portal (CPPP) as per Rule 159, Apart from CPPP, | the organisations should publish ihe tender enquires on the Department's or Ministry's. website. Purchase through —_Limited Tender Enquiry may be adopted even where the estimated value of the procurement is more than Rupees twenty-five Lakhs, in the following circumstances. (ii) when estimated value of the goods to be procured is up to Rupees Fifty Lakhs. Copies of the bidding document should be sent directly by speed post! registered post’ courier! email to firms which are borne on the list of registered suppliers for the goods in question as referred under Rule 150 above. The number of supplier firms in Limited Tender Enguiry should be more than three. Efforts should be made to identify a higher number of approved | suppliers to obtain more responsive bids on competitive basis, Further, an organisation should publish its limited tender enquiries on GeM as wall as on GeN- CPPP. Apart from GeM, the — organisations should publish the tender enquiries on the Department's or Ministry's web site. Purchase Limited Tender adopted through Enquiry may be even where the estimated value of the procurement is more than Rupees Fifty Lakhs, in the following circumstances, Page 6 of 10S. | Existing Rule ‘Amended Rule No. (@) The competent authority in (@) The competent authority in the Ministry or Department the Ministry or Department | certifies that the demand is certifies thal the demand is urgent end any additional urgent and any additional expenditure involved by not expenditure involved by not procuring through advertised procuring through advertised lender enquiry is justified in tender enquiry is justified in view of urgency. The Ministry view of urgency. The or Departments should also Ministry or — Department put on record the nature of should also put on record the urgency and reasons the nature of the urgency why the procurement could } and reasons why the not be anticipated procurement could not be anticipated, (b) There are sufficient reasons, (b) There are sufficient reasons, to be recorded in writing by to be recorded in writing by the competent authority, the competent authority, indicating that it will not be in indicating that it will not be in public interest to procure the public interest to procure the goods through advertised goods through advertised tender enquiry. tender enquiry. (c) The sources of supply are (c) The sources of supply are definitely known and definitely known and possibility of fresh source(s) possibilty of fresh source(s) beyond those being tapped beyond those being tapped is remote. is remote. 10. | Rulet73 : Rule 173 : Transparency, competition, | Transparency, competition, faimess and elimination of ess and elimination of arbitrariness in the procurement process (xii) In case a purchase Committee is constituted to purchase or recommend the procurement, no member of the purchase Committee should be reporting directly to any other member of such Committee In case arbitrariness in the procurement process (oti) In case a purchase Committee is constituted to purchase or recommend the procurement, no member of the purchase Committee should be reporting directly to any other member of such estimated value of Committee in case estimated procurement exceeds Rs. 25 value of —_ procurement lakhs. exceeds Rs. 50 lakhs. Page 7 of 10S. | Existing Rule | Amended Rule No. 11. ; Rule 183 Rule 183 Identification of Ii ‘sources. Identification of likely sources. (). Where the estimated cost of the | (i) Where the estimated cost of a) consulting service is up to [Rupees twenty-five lakhs], preparation of a long list of Potential consultants may be done on the basis of formal or informal enquiries from other Ministies or Departments or Organisations involved in similar activities, Chambers of Commerce & ~—_ Industry, Association of consultancy firms etc. Where the estimated cost of the consulting services is above Rupees twenty-five lakhs, in addition to (i) above, an enquiry for seeking ‘Expression of Interest’ from consultants should be published on Central Public Procurement Portal (CPFP) at www.eprocure.gov.in and on GeM. An organisation having its own website should also publish all its advertised tender enquiries on the website Enquiry for seeking Expression of Interest should include in brief, the broad scope of work or service, inputs to be provided by the Ministry or Department, eligibility and the —pre- qualification criteria to be met by the consultant(s) and consultant's past experience in similar work or service. The consultants may also be asked to send their comments on the objectives and scope of the work (li) the consulting service is up to [Rupees Fifty lakhs], preparation of a long list of potential consultants may be done on the basis of formal or informal enquiries from other Ministries or Departments or Organisations involved in similar activities, Chambers of Commerce & Industry, Association of consultancy firms ete. Where the estimated cost of the consulting services is above Rupees Fifty lakhs, in addition to (i) above, an enquiry for seeking ‘Expression of Interest’ — from consultants should be published on GeM as, well 2s on GeM-CPPP. An organisation having its own website should also publish all its advertised tender enquiries on the website. Enquiry for seeking Expression of Interest should include in brief, the broad scope of work or service, inputs to be provided by the Ministry or Department, eligibility and the pre qualification criteria to be met by the consullant{s) and consultant's past experience in similar work or service. The consultants may also be asked to send their comments on the objectives and scope of the work or service projected in the or service projected in the enquiry. Adequate time should enquiry. Adequate time should be allowed for getting Page 8 of 10Ss. Amended Rule No. 7 ba allowed for gelling responses responses from _ interested from interested consultants, consuliants, 72.| Rule 201: Rule 201: Invitation of Bids. Invitation of Bids. | (i) For estimated value of the non- | (i) For estimated value of the non- consulting service up to Rupees consulting service up to Rupees ten lakhs or less: The Ministry Fifty lakhs or less: The Ministry of Department should scrutinise ‘or Department should scrutinise the preliminary list of likely the preliminary list of likely contractors as identified as per contractors as identified as per Rule 189 above, decide the Rule 199 above, decide the prima facie Eligible and capable prima facie Eligible and capable contractors and issue limited contractors and issue limited tender enquiry to them asking tender enquiry to them asking for for their offers by a specified their offers by a specified date date and time etc. as per and time etc. as per standard standard practice, The number practice. The number of the of the contractors so identified contractors so identified for for issuing limited tender enquiry issuing limited tender enquiry should be more than three, should be more than three. (i) For estimated value of the non- | (ji) For-estimated value of the non- consulting service above Rs.10 consulting service above Rs. 50 lakhs: The — Ministry or lakhs: The = Ministy or Department should issue Department should issue advertisement in such case advertisement in such cases on should be given on Central GeM as well as on GeM-CPPP. Public Procurement — Portal An organisation having its own (CPPP) at www.eprocure.govin | website should also publish all and on GeM, An organization its adveriised tender enquiries having its own website should onthe ~— website. The also publish all its advertised advertisements for invitation of tender enquiries on the website. tenders should give the The advertisements for invitation complete web address from of tenders should give the where the bidding documents complete web address from can be downloaded, where the bidding documents can be downloaded. 13.] Rule 218: Rule 218; Modes of Disposal. Modes of Disposal, (i) Surplus or obsolete or | (i) Surplus or obsolete or unserviceable goods. of unserviceable goods _—_of assessed residual value above Rupees Two Lakh should be assessed residual value above Rupees Four Lakh should be Page 9 of 10, paS. | Existing Rule ‘Amended Rule No. disposed of by: ; disposed of by: {a) obtaining bids through (a) obtaining bids _ through advertised tender or advertised tender or (b) public auction. For surplus (b) public auction. For surplus or obsolete or or obsolete or unserviceable goods with unserviceable goods with residual valueless than residual value less than Rupees Two Lakh, the Rupees Four Lakh, the mede of disposal will be determined by the mode of disposal will be determined by the competent authority, ‘competent authority, keeping in view the keeping in view the necessity to avoid necessity to avoid accumulation of | such accumulation of — such goods and consequential goods and consequential blockage of space and, blockage of space and, also, deterioration in value also, deterioration in value of goods to be disposed of. of goods to be disposed Ministries! — Departments of, Ministries! Departments should, as far as possible should, as far as possible prepare a list of such prepare a list of such goods goods. 2. It is clarified that the specific relaxation in the GFRs already provided to Scientific. Ministries etc. vide OM No. 20/42/2021-PPD dated 20.05.2024 will continue to be available to thern. 3. This OM is also available on website of Department of Expenditure; wrw.doe.gov.in - > Notification -> Circular > Procurement Policy OM. (Anil oe Deputy Secretary (Procurement Policy) Tet.24627920 email: anil.kumart4@nic.in To, All the Secretaries and Financial Advisors to Government of India. Page 10 of 10