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Q: Is it necessary to float a tender wherein there is no scope for price discovery? Kindly advise us in light of the various provision of the laws.

A: In Public Procurement, Transparency, Fairness and Equality-for-bidders mandate floating of tender even in case there is no scope of price discovery.
Procurement without tenders can be done only in following conditions:

  1. 1. below Rs. 25,000 by 'Direct Procurement without Quotation' (i.e. without tenders)
  2. 2. between Rs. 25,000 to 2.5 Lakhs by 'Direct Procurement by Purchase Committee'.

In both above cases, reqirements cannot be artificially broken to come under these thresholds.
In case there is no scope of source discovery (the sources of supply are definitely known and possibility of fresh sources beyond these is remote), Special Limited Tender (even beyond Rs 25 Lakhs) may be done with necessary approvals as per Schedule of Powers of Procuring Agency. In case it is a proprietary item of a particular firm, then after appropriate signing of PAC (Proprietary Article Certificate) procurement can be done on Single Tender Basis.
Please refer to Paras 4.5, 4.6, 4.9 and 4.10 of Finance Ministry's Manual for Procurement of Goods, 2017.

Q: what can be the dangers and risks in implementing "Just in Time"? why would it be difficult to implement JIT in Public Procurement?

By the very nature of the long-term strategic partnership with one or two vendors in Just In Time, it is difficult to implement it in Public procurement, except in rare cases of Proprietary Products or 'Cold Chain Vaccines' etc. But then JIT means putting all the materials required on JIT not just a few of the items. There is no annual tendering/ contracting in JIT.

Public procurement fundamentally relies on repeated (at least annual - or in case of rate contracts upto 2 years) tenders where new suppliers can also participate. Public procurement doesn't have any approved and clear methodology for long-term strategic partnerships. 

Hence JIT is very difficult in existing Public Procurement framework.

Q: Under GeM who decides which vendor is technically complaint to the tender response? Is it government agency or does GeM get involved?

Tender responses are to be evaluated (including technical compliance) by the government purchasing agency. GeM is not involved in evaluation of tender responses.

Q: Where in GFR it is mentioned that EMD is applicable on total value of Consultancy Services & Total value of project / services.

There is no mention of EMD in case of Consultancy Services in GFR (Rules: 177 -196) - not even in the Manual for procurement of Consultancy and other services. However on the analogy of Rule 206: Any circumstances not covered, the procuring entity may refer to Rules for procurement of Goods (Rule 142 - 176). Here Rule 170 for Bid Security specify EMD as percentage of "estimated value" of procurement.

Q: What is the increase in percentage (tolerance clause) in any indent is defined in GFR / Procurement manual for drugs procurement. Please share link

There is no specific reference to tolerance for increase in percentage in drug indents. What is meant perhaps is percentage to which quantity on order may be increased. Please refer to Para 9.3 ("operation of option clause" page 125) of the Manual for Procurement of Goods. Option upto 25%-30% can only be operated if a specific clause is included in the Contract.

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