Store Purchase Rules

Dr Amar Dutt Bhardwaj

 General Principles
• Every Government
Department/Board/Corporation/Autonomous
Bodies and other Public Sector Undertaking spend
a sizeable amount of its budget for procurement of
various types of goods to discharge the duties and
responsibilities assigned to it.
• Therefore, it is imperative that these purchases are
made by following uniform, systematic, efficient
and cost effective proceedure.
 General Principles Contd.
• Public buying should be conducted in a
transparent manner in order to bring
competition, fairness and elimination of
arbitrariness in the system.
• Public Procurement Procedures must conform
to exemplary norms of best practices to
ensure efficiency economy and accountability
in the system.
 General Principles Contd.
• In the State of Himachal Pradesh, procurement
of goods was being carried out under the Store
Purchase Rules as incorporated in the
appendix 10 of HPFR. 1971. Vol.II
• Government of Himachal Pradesh vide
notification issued by Controller of Store,
dated 24th October, 2013 has repealed
appendix 10 of HPFR Vol.II
 General Principles Contd.
• As per the provision contained under rule 192
of HPFR,2009, Government issued detailed
instructions and guidelines for procurement of
goods and services.
• State Government vide making mandatory to
all the procurement agencies under the
Government to follow the tendering process in
public procurement has also initiated series of
procurement reforms.
 General Principles Contd.
• The Departmental Officers entrusted with the
use, care or consumption of stores are
responsible for maintaining correct records
and preparing correct returns in respect of the
stores entrusted by them.
• They are also responsible for keeping them in
proper custody and in good and efficient
condition and for protecting from the
deterioration.
 General Principles Contd.
• They should also take proper precautions to prevent
loss of public store by fire or by other accidents.
• Any loss of or damage to Government Stores should
forthwith be reported by them to their immediate
superior.
• Purchase orders should not be split up so as to
avoid the necessity for obtaining the sanction of
higher authority required with reference to the
total amount of the orders
 General Principles Contd.
• Purchases must be made in the most economical
manner, in accordance with the definite
requirements of the public service.
• When stores are purchased from the open
market, the system of open competitive tender
should as far as possible be adopted.
• Purchases should be made from the lowest
tenderer unless there are any special reason to
the contrary which should be recorded in written.
 General Principles Contd.
• Store should not be purchased in small
quantities.
• Periodical indents should be prepared and as
many articles as possible obtained by means of
such indents.
• At the same time, care should be taken not to
purchase store much in advance of actual
requirements if such purchases are likely to
prove unprofitable to the Government.
 General Principles Contd.
• All the purchases of Stores for public service
shall be regulated strictly as per Store Rules
and detailed instructions/guidelines issued by
COS vide notification dated 24th October,2013.
• All the articles given in Annexure-I of Store
Purchase Rules shall be purchased through
Store Purchase Organization on Rate
Contracts/NOC (84 items)
 General Principles Contd.
• Articles in Annexure-V shall be purchased by the
respective organization/Department through
their Departmental Standing Purchase
committee constituted by the Finance
Department after observing rules and procedure
of the Store Purchase Department/policy of the
Government.(174 items)
• Any other items not covered in Annexure –I and
V shall be purchased through Controller of Store
 General Principles Contd.
• Indent with Controller of Stores to be placed
as soon as budget is received not till the close
of financial year.
• In case indents are not received from the
Departments, Controller of Store will not issue
NOC/NAC.
• Store will be indented for ISI marked failing
which ISI specifications.
 General Principles Contd.
• Head of the Department will consolidate their
normal demand as per annexure-I and place
indent before COS.
• A certificate will be issued that funds are
available and sanction of competent authority
exists.
 Type of Purchases
• Purchases without quotation
• Through Departmental Purchase Committee
• Advertised Tender System
• Limited Tender System
• Single Tender System
• Through Rate Contract of COS/DGS&D
• By negotiation with private parties in
emergencies
• Parallel Rate Contract
 Purchases without quotation
• The above monetary limit may be revised by
the Finance Department from time to time.
• The concern procuring officer shall keep a
record of the goods purchased without
inviting quotation on each such occasion, and
shall work out the cumulative total of such
purchases made during the financial year.
 Purchases without quotation
• Purchase of goods upto monetary value not exceeding
Rs. 3000/- only on each occasion subject to a maximum
of Rs. 50,000/- in a financial year may be made by the
HOD/Controlling Officer/DDO without inviting quotation
or bids.
• Such purchases can be made only on the basis of the
certificate to be recorded by authorized officer that
• I am personally satisfied that the goods purchased are of
the requisite quality and specification and have been
purchase from a reliable supplier at a reasonable price.
Through Departmental Purchase Committee

• Purchase of goods costing above Rs.3000/- only up

to Rs. 50,000/- on each occasion and yearly
respectively may be made on the recommendation
of duly constituted local purchase committee
consisting of three members of an appropriate level
as may be decided by HOD.
• The said committee shall survey the market to
ascertain the reasonableness of rates, quality and
specification and identify the appropriate supplier.
Through Departmental Purchase Committee

• Before recommending placement of the

purchase order the members of the
committee shall jointly record a certificate.
• That we are satisfied that the goods
purchased are of the requisite quality and
specification and have been purchase from a
reliable supplier at a reasonable price
 Advertised Tender System
• Subject to exception under rules HPFR-2009
the method of advertised tender system shall
be used for procurement of goods of
estimated value of Rs. 10.00lakh and above or
such limit as may be prescribed.
• Advertisement in such cases shall be given in
the official gazette of HP and at least in two
leading daily news papers having wide
circulation.
 Advertised Tender System
• A procurement entity having its website shall
also publish all its advertised tender enquiries
on the website and provide a link with website
of the COS, HP.
• It should give its website address in the
advertisement in the official gazette of HP and
newspapers.
 Advertised Tender System
• Procurement entity shall also post the
complete tender documents in its website and
permit prospective bidders to make use of the
documents downloaded from the website.
• Specific mention shall be made in the tender
document for comprehensive maintenance of
contract where ever required.
 Advertised Tender System
• If such a downloaded tender documents are
priced, there shall be clear instructions for the
bidders to pay the amount along with the bid.
• The minimum time to be allowed for
submission of bids shall be three weeks from
the date of publication of the tender notice or
availability of tender documents for sale,
whichever is later.
 Advertised Tender System
• Where the Procurement Entity contemplates
obtaining bids from abroad, the minimum
period shall be four weeks for both domestic
and foreign bidders.
• For highly valuable plant and machinery of a
complex and technical nature, the bids shall
be procured in the manner:-
 Advertised Tender System
• (a) Technical bids consisting of all technical
details along with commercial terms and
conditions.
• (b) Financial bids indicting items-wise prices for
the items mentioned in the technical bid shall
be submitted separately by the bidders.
• (c ) Technical bid and financial bid shall be
sealed by the bidder in separate cover duly
super-scribed.
 Advertised Tender System
• (d) Both these sealed covers shall be put in
bigger cover which shall also be sealed and duly
super-scribed.
• (e) The technical bid shall be opened by the
Procurement Entity at the first instance and
evaluated by a committee constituted by the
HOD.
• (f) At the second stage financial bids only of the
technically acceptable offers shall be opened
 Advertised Tender System
• For further evaluation and ranking before
awarding the contract.
• (g) All the terms, conditions, stipulations and
information to be incorporated in tender
documents shall contain instructions to bidders.
• (h) The bids received after the date and time
specified for their receipt shall not be
considered.
 Advertised Tender System
• Conditions of contract, Schedule of
requirements, specifications and allied
technical details, price schedule be completed
by the bidders for quoting their prices.
• Contract form and other standard forms to be
utilized by the procurement entity and the
bidders.
 Limited Tender System
• Limited Tender System shall be adopted if estimated
value of the goods to be procured is up to 10 lacs.
• Preference shall be given to the supplier having
depots and dumps within the territory of Himachal
Pradesh.
• Copies of the tender documents shall be sent directly
by speed post or registered post or currier or e-mail
to the firms dealing manufacturing or supplying
goods to obtain more responsive bids on competitive
basis.
 Limited Tender System
• The number of the firms in the limited tender
system should not be less than three and the
firms addressed should not be less than six.
• Purchase through limited tender system may
be adopted even where the value of the
procurement is more than the limit specified
subject to the condition that :
 Limited Tender System
• (a) The Head of the Department certifies that the
demand is urgent and procuring of goods through
limited tender system is justified in view of the
urgency, indicating therein reasons why the
procurement could not be anticipated for resorting
to advertisement tender system.
• There are sufficient reasons to be recorded in
writing by the Procurement Entity that it shall not be
in the public interest to procure the goods through
advertised tender enquiry.
 Limited Tender System
• The sources of the supply are definitely known
and possibility of fresh sources beyond those
being resorted to is remote.
 Single Tender System
• Single tender system shall be adopted in case of
articles of proprietary nature, which are available from
single source.
• Articles of proprietary nature shall be purchased, after
obtaining a certificate from the manufacturers or sole
agents as the case may be to the effect that the rates
quoted by them are identical to those approved by
Director General of Supplies and Disposal or Controller
of Store HP or the rates quoted by them are similar to
those quoted in any other state in the country.
 Single Tender System
• Single Tender System shall also be resorted to for
additional purchase of goods from the original
suppliers, which are intended either as part
replacement of existing goods, services or
installations or the extension of existing goods,
services or installations, where such additional
purchase of equipments and services shall meet
the requirement of procurement entity for utilizing
the already existing equipments or services
 Single Tender System
• A certificate in the following form shall be
provided by the procurement entity before
procuring the goods from a single source.
• (a) The indented goods are manufactured by
• ---------------.
• (b) No other make or model is acceptable for the
reasons-------------
• ( c) Approval of competent authority has been
obtained
 Other forms of Purchases
• Through Rate Contract of COS/DGS&D.
• By negotiation with private parties in
emergencies.
• No objection certificate :- GM DIC concerned
authorized up to Rs. 50,000/- per items
annually.
• Parallel Rate Contract.
 Annual Maintenance Contract.
• 1. Depending on the cost and nature of the
goods to be purchased, the procurement
entity may enter into maintenance contract(s)
of suitable period either with the supplier of
the goods or with any other firm.
• Such maintenance contract are especially
needed for sophisticated goods such as costly
equipment and machinary.
 Annual Maintenance Contract.
• It shall be mandatory that the equipment or
machinery is maintained free of charge by the
supplier during its warranty period as per the
terms of the contract.
 Earnest Money
• In case of the advertised or limited tender system,
earnest money shall be obtained from the tenderer
(s) who shall furnish the same alongwith the
tenders in the shape of Accounts Payees Bank Draft
or duly pledged Fixed Deposit Receipt.
• Amount of earnest money shall be between two
percent to five percent of the estimated value of
goods to be procured as determined by the
Procuring Department and indicated in the tender
document.
 Earnest Money
• The earnest money of the unsuccessful
tenderer shall be refunded to them at the
earliest after expiry of final validity period of
tender as stipulated in the tender document.
• The earnest money of successful tenderer shall
remain in the custody of Procuring Department
till t he entire process for purchase of goods has
been made completed by the contractor to the
best of satisfaction of procuring department.
 Earnest Money
• Procuring Department may retain the earnest
money of the contractor supplying goods till
further period depending upon the nature of
contract.
• Earnest money deposited by the tenderer
shall be forfeited in the following events:-
 Earnest Money
• 1. A modification or withdrawal of tender after
the deadline for submission of tenders and
during the validity.
• 2. Refusal by the tenderer to accept an
arithmetical error or otherwise appearing on the
face of the tender.
• Failure on the part of the successful tenderer to
sign the contract in accordance the terms and
conditions stipulated in the tender documents.
 Earnest Money
• 4. failure on the part of the successful
tenderer to provide performance security
under rule 107 for execution of the contract.
• 5. Failure on part of the successful tenderer to
execute the contract as per terms and
conditions stipulated in the tender
documents.
 Performance Security
• Performance security shall be obtained from
the successful contractor on the award of the
contract irrespective of his registration which
shall be for an amount between five to ten
percent of the value of the items to be
purchased.
• Such security shall be furnished in the form of
an Account Payee Demand Draft / duly
pledged
 Performance Security
• It is obtained with a view to safeguard the
interest of procuring department.
• Performance security shall remain valid for a
period of 60days from the date of completion
of contract including warranty and guarantee
period to the best of satisfactions of procuring
department
Advance or on account payment to suppliers

• Payment for services rendered or supplies made shall

be released only after the services have been
rendered or supplies made.
• Advance or on account payment may be made in the
following cases:-
• (a) To the contractors executing maintenance contract
for servicing of machinery and electronic
equipments.
• (b) To the contractors executing fabrication contract or
turn key contract.
Advance or on account payment to suppliers

• Where it is essential to make advance

payment, the amount shall not exceed the
following limits:-
• (a) 30% of the contract value to the private
contractors.
• (b) 40% of the contract value to a State or
Central Government Organization or a public
sector undertaking.
Advance or on account payment to suppliers

• Pro-rata on account payment up to 80% of

the supplies made or services rendered may
be made pending completion of the contract,
after assessing the same.
• The Government may relax the ceilings
including percentage laid down for advance
payment.
Advance or on account payment to suppliers

• While making any advance payment,

adequate safeguards in the form of bank
guarantee shall be obtained from the
contractors.
• Part payment to contractors may be released
after he dispatches the goods from his
premises depending up on the terms and
conditions of the contract.
 Transparency, Fair Competition and
elimination of arbitrariness
• All the Government contracts for procurement
of goods shall be made in a transparent,
competitive and fair manner.
• The text of the tender document shall be self
contained and comprehensive without any
ambiguities.
• All essential information shall be clearly spelt
out in the tender documents in a simple
language.
 Transparency, Fair Competition and
elimination of arbitrariness
• The criteria of the eligibility of the tenderer
such as minimum level of experience, past
performance, registration status,
manufacturing, supplying, technical,
professional and financial capabilities be
incorporated in the tender document.
• The procedure for submitting the tenders.
• The date, time and place of opening of the
tenders.
 Transparency, Fair Competition and
elimination of arbitrariness
• Eligibility criteria for goods indicating any
legal restrictions or conditions regarding
manufacturing and supplying of goods which
may be required to be met by successful
tenderer be incorporated.
• Terms of delivery.
• Any other terms for performance of contract
as may be prescribed.
 Transparency, Fair Competition and
elimination of arbitrariness
• Provision shall be made in the tender
document to enable a tenderer to make
queries about the conditions, processes and
rejection of the tender.
• Provision for settlement of any dispute
emerging from the contract shall be made in
the tender documents.
 Transparency, Fair Competition and
elimination of arbitrariness
• The tender documents shall indicate clearly
that the contract shall be interpreted under
Indian Laws and in case of a legal dispute the
same shall be subject to local or jurisdiction of
the Courts of Himachal Pradesh.
• The tenderer shall e given reasonable time to
sent their tenders
 Transparency, Fair Competition and
elimination of arbitrariness
• The tender shall be opened in the presence of
tenderer or their authorized representatives, if
present at the time of opening of tenders.
• The standard specifications of the goods shall
be broad based and clearly stated without any
ambiguity so as to attract sufficient number of
tenderer with a view to safeguard the interest
of State Government .
•
 Transparency, Fair Competition and
elimination of arbitrariness
• Factors to be taken into account for evaluating
the tenders and the criteria for awarding the
contract to the lowest tenderer shall be clearly
indicated in the tender documents.
• The evaluation of tenders shall be made
strictly in accordance with the terms and
conditions of tender documents.
 Transparency, Fair Competition and
elimination of arbitrariness
• Where the price quoted by the lowest
tenderer is highly excessive as compared to
prevalent price justification, negotiation may
be held with lowest tenderer to bring the price
below justification.
• If the negotiation with lowest tenderer fails to
result in an acceptable contract, procurement
entity may proceed to hold negotiation with
the next ranked tenderer so on.
 Transparency, Fair Competition and
elimination of arbitrariness
• Contract shall be awarded to the lowest
tenderer.
• Where the lowest tenderer is not in a position
to supply the full quantity required, the
remaining quantity may be ordered to next
higher tenderer at the rates offered by the
lowest tenderer at the same terms and
conditions.
 Transparency, Fair Competition and
elimination of arbitrariness
• Where the rates of more than one firm have been
approved for the same items, time and cost
effectiveness may be kept in view.
• Prior to inviting of tender for procurement of costly
goods of highly technical nature involving latest
technology or execution of costly turn-key contract, a
conference of prospective tenderer may be convened
in the manner as may be prescribed for clarification
of doubts and settlement of issues relating to
minimum acceptable level of specifications.
 Efficiency, Economy and Accountability in
Procurement System.
• For avoiding delay, appropriate time frame for
such stage of procurement shall be specified
by the Department.
• For minimizing the time needed for decision
making and implementation of contract, the
Department shall act as per delegation of
financial power as may be prescribed.
 Efficiency, Economy and Accountability in
Procurement System.
• The Department shall award the contract
within the validity period stipulated in the
tender document.
• Extension in time period in the validity period
may be allowed by the competent authority
only in exceptional circumstances for which
reasons shall be recorded in writing.
 By Back Offer
• The department may decide with the approval
of competent authority to replace existing old
goods with new goods of better version from
the contractor by adjusting the cost of existing
old goods as per mutual agreement for such a
clause shall be inserted in the tender
documents in the prescribed manner.
 Inventory Management
• Every Department shall specify the detailed
procedure relating inventory management in its
regulations after obtaining the approval of
competent authority in consultation with the
Finance Department.
• (A) Receipt of Goods:
• 1. The Officer-in-Charge of the concerned
Department shall follow the terms and conditions of
the contract for receiving goods from the supplier.
 Inventory Management
• 2. All the goods shall be counted measured or
weighted and inspected at the time of receipt
with a view to ascertain the quality, quantities
and specifications.
• 3. Technical specification where required shall
be carried out by the technical committee
constituted by the competent authority.
 Inventory Management
• 4. Detail of the goods received shall thereafter
be entered in the stock registers.
• 5. Officer-in-Charge of the Store of the
concerned department shall certify that all the
requisite goods have been received and
recorded them in the stock register.
• 6. At the time of payment, rates t o be checked
with reference to supply order/agreement.
 Inventory Management
• 7. The indenting Officer requiring goods from
internal division of the Department, may place
an indent in the prescribed forms.
• 8. The indenting Officer shall examine, count,
measure or weigh the goods with a view to
ascertain the quality, quantities and
specifications and he shall issue receipt of
goods received by him
 Inventory Management
• 9. If the Officer- in –Charge of the stores is not in a
position to supply the full supply of goods
mentioned in the indent due to Non- Availability of
sufficient goods in the stores, he shall make the
supply to the extent available and make suitable
entry to this.
• 10. In respect to goods issued to a contractor, the
cost of which is recoverable from him, all relevant
particulars including the recovery rates shall be got
acknowledged from him.
 Safe Custody of Goods
• The Officer- in- Charge of store having custody
of goods shall take appropriate steps for
arranging their safe custody of store items.
• Proper storage and accommodation including
arrangements for maintaining required
temperature dust free environment of
required specification depending up on the
nature of goods be ensured.
 Safe Custody of Goods
• The Officer- in- Charge of stores shall take
special care for the safe custody of explosive
goods as per provisions contained in the
Explosives Act, 1884 and rules framed
hereunder.
• He should make arrangement to avoid from
loss of theft, fire, accident, damage, fraud etc.
 List and Accounts
• The Officer-in- Charge shall be responsible for
maintenance of suitable item wise list and
accounts.
• Accounts returns in respect of the goods in his
charge with a view to ensuring proper check
and reconciliation of actual balances with the
book balances be prepared.
 List and Accounts
• The form of the store accounts shall be
determined with reference to the nature of
the goods and materials, the frequency of the
transactions in the prescribed manner.
• Separate accounts shall be kept for fixed
assets, consumable and dead stock or
unserviceable items in the manner as may be
prescribed.
 List and Accounts
• The Officer-in-Charge will ensure that contract
entries of quality received/issued with quantity
and specification are entered in the stock
register to check annual balance with the
books.
• Stock register should be maintained as per
nature of stores.
• Accounts for consumable store such as dietary
stock in hospital, jail differ than furniture.
 List and Accounts
• Different stock register be made for (a) dead
stock such as plant, machinery, furniture,
equipments (b) other stores such as
consumable/perishable items.
• An inventory of dead stock should be made
showing the number received, disposed off by
transfer, sale loss and balance of each items.
• Inventory should be priced.
 List and Accounts
• Inventory should be prepared at the site of
material.
• Inventory should be checked once in a year by
HOD.
• When articles of dead stock i.e. tools and
plant are lent to local bodies, contractors hire
charges should be recovered at once.
 Physical Verification
• The officer-in-Charge of the stores shall cause to
maintain the inventory for fixed assets, consumable
and dead stock or unserviceable items.
• Head of the Department shall conduct the physical
verification of fixed assets, consumable goods and
dead stock or unserviceable items or cause it to be
conducted through his subordinate officer or
through a committee constituted either by him or
by the State Government at least once in a year.
 Physical Verification
• It should not be entrusted to custodian, ledger
keeper etc and who is not conversant with the
nomenclature, classification, techniques.
• Not to low paid employees but to some
responsible officers.
• Physical verification shall always be conducted
in the presence of the Officer responsible for
the custody of the inventory.
 Physical Verification
• A certification of verification along with the findings
shall be recorded in the Stock register by the Officer
or the committee conducting the physical
verification.
• Discrepancies including shortages, damages and
dead stock items, unserviceable items, if any
indentified during verification shall immediately be
brought to the notice of competent authority by the
officer or the committee conducting the physical
verification for take appropriate action.
 Physical Verification
• Balance of the store should not be kept in
excess of requirement.
• After verification, if any item has been found
surplus, unserviceable, obsolete it should be
reported to higher authority.
• The items for more than a year kept in stores
should be considered surplus unless there is
any good reason to treat them otherwise.
 Physical Verification
• Every department shall maintain an optimum
level of the store/stock as per their day to day
requirement so that there are neither
excessive nor shortage of requisite goods.
Special Procedure for library Books
• The proper procedure shall be observed for
purchase, disposal, physical verification and
write off library books maintained in the
libraries of various Government department.
• Library books in Government Libraries which
are mutilated or damaged or have become
obsolete shall be disposed off on the
recommendation of the committee constituted
for this purpose by the competent authority.
Special Procedure for library Books
• Physical verification of library books shall be
conducted every year in case of libraries having
not more than 20000/- books by qualified
library staff or any other authorized by the
competent authority.
• Physical verification library books at interval of
not more than three years shall be conducted in
case library having more than 20000/- but not
more than 50000/- by the qualified library staff.
Special Procedure for library Books
• Sample physical verification of library books at
interval for not more than five years shall be
conducted in case of libraries having more
than 50000/- books by qualified staff.
• If such a sample verification reveals unusual or
unreasonable shortages, complete verification
shall be conducted.
Special Procedure for library Books
• In case of libraries having more than 50000/-
books loss up to five books per thousand
books issued or consulted in a year shall be
taken as reasonable.
• In case of other libraries, the quantum of loss
of library books shall be determined by the
concerned departments within the limit
mentioned.
Special Procedure for library Books
• Such loss shall not be attributed to dishonesty
or negligence on the part of librarian.
• Loss of library books including books of special
nature shall invariably be investigated and
consequently action taken in the prescribed
manner.
• Any other matter regarding proper
maintenance of library books shall be dealt
within the prescribed manner
 Handing over of charge of Goods
• In case of transfer of Officer-in –Charge of the goods, the
relieved official as well as reliving official shall ensure
that the goods are correctly handed over and taken over
by the relieved official and reliving official respectively.
• A statement showing all the relevant details of the
goods so handed over and taken over shall be prepared
and signed by the relieved official and the relieving
official with a view to enable the competent authority
to fix responsibility in case of any loss of goods.
 Disposal of goods
• A department shall declare the goods as
surplus or obsolete or unserviceable and
dispose off the same in the prescribed
manner.
• While declaring the goods as surplus or
absolute or unserviceable for disposal of the
same, the HOD or the authorized officer shall
generally following the principles of :-
 Disposal of goods
• 1. He shall record the detailed reasons in writing
in this regard.
• 2. He may constitute a committee at appropriate
level for such declaration.
• 3. He shall prepare a report of goods to be
disposed off on the prescribed Performa.
• 4. Before disposing off the goods, he shall cause
to work out the book value, guiding price and
reserve price of the goods to be disposed off.
 Disposal of goods
• Where the book value, guiding price and reserved
price can not be worked out, the original price of
goods shall be deemed to be the book value for
guiding price and reserved price.
• When the goods are sold to the public or any other
department or authority at full value, a suitable
percentage as determined by the competent
authority shall be put to the book value to cover the
charges on account of the supervision, storages and
contingencies.
 Disposal of goods
• This condition may be waived off by the competent
authority if it is observed that the goods are likely to
remain unsold.
• In case goods are declared surplus in a department,
the same may be transferred to another department
of the Government at book value for utilization .
• In case goods become unserviceable due to
negligence, fraud or mischief on the part of
Government Servant, the responsibility of the same
shall be fixed.
 Mode of disposal
• Surplus or obsolete or unserviceable shall be
disposed off in the prescribed manner :
• 1. Obtaining bids through advertised tender.
• 2. Public auction.
• 3. Any other mode.
 Disposal through Advertised Tender
• 1. Preparation of tender documents.
• 2. Invitation of tender for surplus, obsolete or
unserviceable goods to be sold.
• 3. Opening of bids. Disposal of goods
• 4. Analysis and evaluation of bids received.
• 5. Selection of highest responsive bidders.
• 6. Collection of sale value from the selected bidders.
• 7. Issue of release order to the bidders.
• 8. Return of bid security to the unsuccessful bidders