Manual for Procurement of Goods Second Edition, 2024 – issued by Ministry of Finance
Manual for Procurement
of
Goods
Second Edition, 2024
Government of India
Ministry of Finance
Department of Expenditure
FOREWORD
(Second Edition, 2024)
As part of initiatives to improve transparency, fairness, competition, value for money, and good governance in public procurement, the Department of Expenditure, Ministry of Finance published the Manual for Procurement of Goods along with other Manuals for Works and Services in 2017 / 2019 (later updated in 2022). These manuals have significantly influenced public procurement practices and served well as a trusted companion for professionals and training establishments.
2. Since their publication, there have been many developments – policy initiatives, clarifications, stakeholders’ deliberations, Methodology for Assessment of Procurement Systems (MAPS) report, 2020, Model Tender Documents for Goods, Non-consultancy, and Consultancy Services, etc. necessitating thorough revision of procurement manuals.
3. In this context, this Manual has been comprehensively revised. It focuses on ease of business for suppliers and clarity for the procurement professionals. A wide range of topics have been rewritten such as clarifying extent of applicability to various entities, categorisation of procurements, conflict of interest, interest-free advance payments, new forms of performance securities, outsourcing procurement, auto-extension of bids, capping price variation and liquidated damages, mitigating cartel formation, reverse auction, rate contracts, withdrawal by L1 bidders, Net Present Value (NPV), Procurement during Natural Disasters and many others.
4. I would like to acknowledge the outstanding work done by the team led by Shri Sanjay Aggarwal, Adviser, PPD comprising Shri Anil Kumar, Deputy Secretary (PPD), Shri Girish Bhatnagar, Sr Consultant and Shri Vikram Rajvanshi, Consultant, PPD. This was truly a collaborative effort, and I would like to thank Ministries, Departments, other organisations, and individuals who reviewed the drafts of the Manual and provided their valuable inputs.
5. As we navigate the complexities of modern procurement, I invite both seasoned procurement professionals and newcomers to explore the guidelines, valuable insights, and actionable recommendations shared in these pages. As we publish this Goods Manual and continue refining others, we remain open to your feedback.
Date: 22nd July, 2024
(Dr. T. V. Somanathan)
Finance Secretary & Secretary (Expenditure)
1. Compliance: This Manual adheres to the relevant laws, GFR, and clarifications/ OMs issued by the Procurement Policy Division, Department of Expenditure, Ministry of Finance (‘the Ministry’) up to June 2024. In case of inconsistencies between this Manual and prevailing law or GFR, the extant law and GFR shall prevail. However, the provisions of this Manual shall prevail in case of discrepancies with the clarifications/ OMs issued till June 2024 by the Ministry. Procuring entities are advised to stay informed about any further changes in the relevant law, GFR, and clarifications/ OMs from the Ministry.
2. Interpretation:
a) Any mention of writing or written includes matter in digital communications (including email), manuscript, typewritten, lithographed, cyclostyled, photographed, or printed – under or over signature or seal or digitally acceptable authentication, as the case may be.
b) Words in the singular include the plural and vice-versa. Words importing the masculine gender shall be taken to include other genders. Words importing persons include any company or any association/ body of individuals/ companies and vice-versa.
c) Any reference to any legal Act, Government Policies or orders shall be deemed to include all amendments to such instruments, from time to time, till date.
d) Sentences containing ‘may’ are to be considered desirable or good practices which procuring entities are encouraged to implement.
e) Sentences containing ‘should’/ ‘shall’ are required to be followed.
f) Sentences containing “allowed” indicate an optional course of action to be decided upon on merits.
3. Manuals and Model Tender Documents: Model Tender Documents (MTD) for Procurement of Goods, and Non-consultancy Services were issued in 2019 and that of Consultancy Services was issued in 2023. These complement the respective procurement manuals since the MTDs contain additional details on many topics that the Manuals cannot accommodate. Therefore, Procuring Officials are urged to read both Manuals and MTDs in tandem for better understanding.
4. Annexures: Voluminous details from various orders/ websites are relegated to annexures to maintain an uninterrupted flow of text on a topic. Since these orders/ websites undergo frequent revision, it would be easier to update the annexures than the body of the Manual.
5. An attempt has been made in this edition of Manuals to illustrate some topics with relevant
examples.
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COMMENTS