Orientation programme on purchase procedure for IIT Bombay
- 1. 1 Orientation program on PURCHASE PROCEDURE For IIT Bombay
- 19. 19 PUBLIC PROCUREMENT What is Public Procurement / public buying? Public buying is different from private buying in many ways. Public buying needs to be transparent and follow applicable rules, regulations and existing policies.
- 20. 299. Contracts (Article 299, Constitution of India) (1) All contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President, or by the Governor of the State, as the case may be, and all such contracts and all assurances of property made in the exercise of that power shall be executed on behalf of the President or the Governor by such persons and in such manner as he may direct or authorise.
- 21. 21 GUIDELINES FOR PUBLIC BUYING
- 27. Rule 144 OF GFR 2017 Fundamental principles of public buying Every authority delegated with the financial powers of procuring goods in public interest shall have the responsibility and accountability to bring efficiency, economy, transparency in matters relating to public procurement and for fair and equitable treatment of suppliers and promotion of competition in public procurement.
- 28. FIVE GOLDEN RULES Of PURCHASES
- 29. Factors affecting the Right Price Early Advance Payment without Bank Guarantee Advance Payment against Bank Guarantee Payment within 30 days after receipt of Materials Payment Against Delivery Payment after 30 days from date of receipt of Materials
- 30. 30 REASONABLE PRICE Last purchase price of same (or in its absence, similar) item through past Pos. Current Market Price of the same or similar item. Price of raw materials which goes into the item.
- 31. 31 PURCHASE FLOW We encourage to discuss project proposal itself where complex/major procurement is involved. 1) Check Budget 2) Requirement / Detail item specification / quantity 3) Create Asset Number if it is asset using ASC Portal. 4) Constitute Purchase Committee and take approval. 5) Create PR - ME51N 6) Create RFQ ME41N 7) Send RFQ to minimum four bidders 8) Publish the Tender on CPPP - MANDATORY 9) Obtain minimum three quotations
- 32. 32 PURCHASE FLOW...Cont. 10) EMD return / submission to Cash Section. 11) Send rejection letter to technically disqualified bidders. 12) Open financial bid of technically qualified bidders. 13) Maintain quotations ME47N 14) Purchase Committee Report 15) Create DPO ME21N 16) Send file to MMD
- 33. 33 MM PROCESS 1) Scrutiny of files. 2) Approvals from Competent Authorities. 3) Send PO to Vendor & others. 4) Returning EMD to Unsuccessful Bidders. 5) Obtain Order Acknowledgement (OA) from Vendor. 6) Obtaining Performance Bank Guarantee (PBG). 7) On receipt of PBG, release EMD to Successful Bidder. 7) Followup with vendor for timely delivery. 8) After receipt of material/Inoice, generate GRN (103).
- 34. MODE OF PAYMENT Wire Transfer/ TT Letter of Credit 100% Advance Payment Within 30 Days after receipt of material 100% Payment through LC 90% + 10% through Letter of Credit
- 35. IMPORT PROCESSES 1) Blocking of Fund for Freignt/Insurance. 2) LC or WT request letter to Account Section. 3) Swift message to Beneficiery Bank and IIT Bombay for intimation. 4) Pickup of material CHA. 5) Pre Alert for arrival of shipment through E-Mail. 6) MMD: Concenssional Custom Duty Exemption Certificate, Authority Letter, GATT Declaration, IEC Copy, GST Registration Certificate, DSIR Copy and handover the same to CHA for custom clearance.
- 36. IMPORT PROCESSES 7) CHA deliver the material at MMD. 8) MMD generate Goods Receipt Note (GRN-103). 9) delivery of the material at concern Department. 10) Dead Stock Register entry & GRN at Dept. 11) Send it back to MMD for generating GRN -105. 12) Releasing of Balance Payment and closing of file.
- 37. 37 INTERNATIONAL COMMERCIAL TERMS (INCOTERMS) Published by the Internal Chamber of Commerce, Paris. The purpose of INCOTERMS is to provide a set of International Rules dealing with the relations between buyers and sellers in foreign trade.
- 38. INCO-TERM Ex Works FCA/ FOB CIP/ CIF DAP/ DDP IITB Authorised CHA will Pickup The consignment from Vendor Warehouse IITB Authorised CHA will Pickup The consignment from Vendor Nearest Airport (Foreign) Vendor will deliver the material Upto Mumbai Airport Vendor will deliver the material Upto IIT Bombay
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- 40. 40 MM PROCESS 9) Stock entry for satisfactory installation/delivery. 10) MMD release GRN (105). 11) MMD will park invoice in ERP. 12) Forward the payment/settlement note along with Original Invoice and GRN to Dean R&D/Main Accounts/Dean ACR. 13) Observe contract till warranty period. 14) PBG of Successful Bidder needs to be returned after warranty period. 15) Checking execution of all the PO activitie. 16) Closure of File needs to be done. 17) Maintain record for 7 years.
- 41. 41 TYPES OF PURCHASES (As per General Financial Rules-2017) 1. Direct Market Purchase without quotation. (upto Rs. 25,000). 2. Direct Market Purchase(LPC) (upto Rs. 2.50 Lakh). 3. Limited Tenders Enquiry(Upto Rs. 50 Lakh) 4. Advertised Tenders Enquiry (Above Rs. 50 Lakh) 5. Single Tender Enquiry ( Proprietary Item). 6. Purchase through other Rate Contract. 7. Repeat Orders 8. Purchase through Buy-back offer.
- 43. Tender Opening Procedure Quotation / Tenders must be opened in the presence of three members. Suppliers may be allowed to attend tender opening meeting. All tenders / quotations including cover must be signed by all members of the committee / Indentor or their representative. All corrections, overwriting should be attested by the bidder and duly initialed by tender opining committee.
- 44. TENDER EVALUATION METHODS 1. Quality and Cost Based Selection (QCBS) 2. Quality Based Selection (QBS) 3. Fixed Budget Selection (FBS) 4. Least Cost selection (LCS)
- 45. E-PROCUREMENT (Mandatory as per GFR-160) E-procurement means purchase using network through software. In includes : 1. Indent management 2. E-Tendering 3. E-Auctioning 4. Vendor management 5. Catalogue management 6. Purchase Order Integration 7. Order Status 8. Ship Notice 9. E-Invoicing, 10. E-Payment 11. Contract Management
- 46. Thank you !