Emergency Procurement

Ministry of Finance
Department of Expenditure
April, 2020

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General Financial Rules
(GFRs), 2017
❑ GFRs were first issued in 1947.
Revised in 1963 and 2005;
❑ These are executive instructions;
❑ Broad procurement rules are
covered under GFRs.
❑ Applicable on Central Government
Ministries/ Departments, generally
to Autonomous Bodies but not
applicable on PSUs or State 2
Governments;
Provisions in GFRs, 2017
❑ Rule 161 (v) Advertised Tender Enquiry:
Ordinarily bid submission be three weeks
from bid publication date and four weeks
for Global Tenders;
⮚ However, for emergency procurement,
the bid submission deadline can be
lesser.

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Advertisement requirement
in Newspapers waived
❑ Publication in newspaper and ITJ is no
more mandatory;
❑ Advertisement should be on Central
Public Procurement Portal (CPPP) and
on GeM;
❑ An organisation having its own web site
should also publish all its advertised tender
enquiries on the web site;
❑ No cost of tender document may be
charged for tender documents downloaded
by the bidders
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Limited Tenders
❑ Rule 162 (iii) (a) Limited Tender Enquiry
method be used for tenders valuing up
to Rs 25 lakh, however it may be
adopted even for procurements > Rs.
25 lakhs;
⮚ CA to certify the urgency of demand
and record the nature of urgency;

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Single Tender/ Nomination
Procurement
❑ Rule 166 (ii) Single Tender Enquiry
⮚ In a case of emergency, required goods
are necessarily to be purchased from
single source;
⮚ No monetary threshold fixed

❑ Similar provisions are available for

procurement of services on nomination
basis under Rule 204 of GFRs
⮚ Non-consultancy services includes air and
other transportation services
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Rule 170: Bid Security
❑ Bid security required to safeguard
against a bidder’s withdrawing or
altering its bid;
❑ Bid Security Declaration Form may be
taken in lieu of Bid Security.

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Rule 171 (i) Performance
Security
⮚ The need for performance security
depends on the market conditions and
commercial practice.

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 MoF Instructions
on
Relief Operations
for
COVID-19 Global Pandemic

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Office Memorandum dated
27th March, 2020
❑ To facilitate procurement and transportation
of medical and other essential supplies for
COVID-19 operations;
❑ The special instructions are the expansion of
the already stated GFRs, 2017 provisions and
are valid till 30th April, 2020;
❑ Instructions issued are applicable on the
following Ministries/ Departments
⮚ Department of Pharmaceuticals;
⮚ Ministry of Health & Family Welfare;
⮚ Ministry of Textiles;
⮚ Department of Consumer Affairs;
⮚ Ministry of Civil Aviation
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Office Memorandum dated
27th March, 2020..
❑ National health emergency requiring
immediate procurement of medical and
other essential supplies;
❑ Items and quantities may not be available
⮚ With a single supplier;
⮚ In required time frame;
⮚ With Domestic suppliers
❑ Certain items/ equipment are effectively in
sellers’ market;
❑ Probable occurrence of price fluctuation for
item(s) due to variation in specifications/
quality
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Office Memorandum dated
27th March, 2020…
❑ Simultaneous procurements may be
undertaken under Rule 166 and 204 from
more than one source;
⮚ Entire quantity not available or immediately
available from one source;
⮚ Procurements may, if unavoidable, be at
different rates
❑ Procurements may be done through Indian
Missions abroad
⮚ Quantity, specifications to be provided by
Ministry/ Department;
⮚ Prices to be fixed by Indian Missions in
consultation with Ministry/ Departments
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Office Memorandum dated
27th March, 2020…
❑ Multiple procurement methods be
applied in case entire quantity is not
immediately available
⮚ Procurement under Rule 166/ 204;
⮚ GeM;
⮚ Other procurement methods (including
Indian Missions)

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Relaxation of procurement
from Govt. e-Marketplace
❑ Rule 149 of GFRs, 2017 mandates
procurement of common used Goods and
Services from GeM;
❑ Due to lockdown, GeM vendors may not
always be able to make deliveries on time
and at desired location;
❑ Provisions of Rule 149 are not applicable
for procurements done under Rule 166 and
Rule 204 i.e. single source procurements;

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Other key points of OM
dated 27th March, 2020
❑ Essential supplies: Any items deemed
essential supplies by Ministry/
Department for COVID 19 operations;
❑ The instructions apply notwithstanding
contrary to the provisions in the
Delegation of Financial Powers

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Office Memorandum dated
1st April, 2020..
❑ Few medical equipment and essential
supplies, may need to be imported;
❑ Limited number of suppliers abroad, and
there is great surge in demand from
other countries as well;
❑ Suppliers insisting full advance
payment, without any bank or
performance guarantee;

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Relaxation offered through OM
dated 1st April, 2020
❑ Any or all of the following requirements
may be waved by Empowered Group on
recommendation of Ambassador/ High
Commissioner of India:
⮚ Consultation of the FA for full advance
payment;
⮚ Bank Guarantee requirement from supplier
for making advance payment;
⮚ Submission of Performance Security by the
supplier
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Relaxation offered through OM
dated 1st April, 2020..
❑ The relaxation offered is only for
procurement of medical equipment and
essential supplies made by Indian Missions;

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Thank you !!

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