PURCHASE PROCEDURE FOR AUTONOMOUS EDUCATIONAL ORGANISATIONS

1. TYPES OF PURCHASES
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2. TYPES OF PURCHASES
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(As per General Financial Rules-2005)
1. Direct Market Purchase without quotation. (upto Rs.
25,000).
2. Direct Market Purchase(LPC) (upto Rs. 2 Lakh).
3. Limited Tenders Enquiry
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.

3. 1. PURCHASE WITHOUT QUOTATION
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• As per GFR -145
• Purchase upto Rs. 25,000 on each occasion may be
made without inviting quotations by competent
authority.

4. 2. DIRECT MARKET PURCHASE-LPC
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• As per GFR -146
• Purchase of goods upto Rs. 2.00 Lakh on each occasion
may be made by an authorised committee through
Market Survey with due certifications.
• In case of web survey, printouts of survey of three
companies may be attached to proposal.
• In each case, copy of three indicative bids to be attached.

5. 3. LIMITED TENDER INQUIRY (LTI)
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AS per GFR – 151
• LTI to be issued for all purchases from Rs. 1 to Rs. 50
Lakh.
• Enquiry should be sent to more than THREE parties.
• Atleast three quotations should be received.
• Otherwise, approval of competent authority required to
open 1 or 2 tenders.

6. 4. ADVERTISED / GLOBAL TENDER INQUIRY
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As per GFR - 150
• All tenders above Rs. 50 Lakhs to be advertised in
leading newspapers.
• Tender to be published on CPPP also.
• In case of Global Tender more lead time can be given
with wider publicity.

7. 5. SINGLE TENDER INQUIRY (STI)
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As per GFR – 154
• Single Tender Enquiry means purchasing without
competition.
• STI should be used as exceptional cases.
• Single Tender Inquiry to be issued when:
• Parts of Existing Equipments.
• AMC of Equipment by the sellers after Warranty
• Proprietary Items-single source of supply.

8. 6. Purchase through other Rate Contract
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• As per GFR – 147
• Purchase of item(s) can be made using DGS&D rate
contract without inviting quotations.
• Get valid DGS&D Rate Contract copy from bidders or
from DGS&D site.
• Process file under ' OTHER RATE CONTRACT' head in
OPS.
• Follow the same procedure for Institute Rate Contract.

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7. Repeat Order
• The repeat order is made without any change in the
rates, specifications as well as terms and conditions of
supply.
• The repeat order shall be placed within 180 days from
the date of original purchase order.
• No repeat order will be placed if buy-back is involved in
the purchase.
• Any amended order shall not be considered for repeat
order.

10. CONTRACT
AGREEMENT

11. WHAT IS PURCHASE ORDER
https://www.youtube.com/watch?v=GLVAQ2cSWN4

12. NEGOTIATING
SKILLS & TECHNIQUES

13. DON'T DISCLOSE YOUR DEADLINE
1. Don’t reveal your deadline unless it is in your best
interest.
2. Focus on the deal itself.
KNOW WHAT YOU WANT
Make a list of what you need & the specifications you
want & stick to it.

14. THINK, THEN SPEAK.
KNOW YOUR MARKET.
Information is the negotiator’s most powerful asset.
If you are well prepared, you will be rarely fooled.
Knowing the strength & weaknesses of your opponent’s
bargaining position will make you a stronger negotiator.

15. Standard Purchase Order
Reference Tender Number / File No.
Purchase Order date & number.
Detail item description and specifications.
Suppliers details with full address.
Reference of supplier quotation and date.
Amount of purchase including all taxes.
Date and place of supply.
Time and days of supply.
Order Acknowledgment.

16. Standard Purchase Order
 Penalty Clause.
Guarantee and Warranty clause.
Clause on right to reject material if not
satisfactory.
Purchase order is subject to all terms
and conditions mentioned in tender
document.

17. FREIGHT FORWARDING & CUSTOM
CLEARANCE
https://www.youtube.com/watch?v=9DJQSL7hpNY
https://www.youtube.com/watch?v=6v8UXcCvBKU

18. Guidelines for Receiving Materials
Following checks must be applied :
1) Check whether material is against valid PO or
else.
2) Material should be accompanied by valid
challan.
3) Materials Specification as per PO on challan.
4) Condition of Box and material should be
checked.
5) Short supply to be reported.
6) Damaged materials to be reported and noted on
challan itself.

26. Guidelines for Clearing Bills
Bill Clearance :
1) PBG.
2) Issue Note / Acceptance Note/ GRN.
3) Octroi

27. 27
RE-EXPORT
PROCEDURE
1.Letter from the Indentor to re-export the defective
equipments.
2. Consent letter from the foreign supplier that the company is
ready to repair or replace the same.
3. Copy o f the original purchase order.
4. Instructions from the Indentor giving the details of fund to
which the re-export charges to be debited.
5. DRMM will send a letter to SBI for obtaining No Objection
Certificate to re-export.

28. MATERIALS TO BE WRITTEN OFF
• All broken, obsolete, old, beyond repair
items must be written off regularly.
• There are used chemicals to be disposed off
safely.
• Old books, old newspapers needs to be sold
regularly.
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29. METHODS OF DISPOSAL
–Replacement supply / buy-back offer.
–Sell to local vendor by limited tenders.
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–Advertised Tender.
–Auctions & E-Auction.
–Disposal of Hazardous Waste.

30. CASE STUDIES
M/s Victory Genset did not supply 625 Genset for 2 years.
Penalized for Rs. 8.00 Lakh. Legal notice settled.
M/s Ocimum-Bio did not supply item after taking advance of Rs.
8.80 Lakh.
M/s AC WORLD employees use to steal copper pipes in night of
installed ACs by them. Caught and jailed. Company Blacklisted.
M/s Datawind of Aakash-II, did not supply in time for more than a
year. Penalty recovered of Rs. 29 Lakh.
M/s Machwel quoted 700 chairs to Hostel-14 at very low rate
(Rs.900), supplied sub-standard chairs, replaced all on holding
payment and guarantee.

31. AREAS OF PROCUREMENT
ACTIVITIES COVERED BY CVC
GUIDELINES

32. CCVVCC GGUUIIDDEELLIINNEESS CCOOVVEERR VVAARRIIOOUUSS
IIMMPPOORRTTAANNTT AASSPPEECCTTSS OOFF PPUUBBLLIICC
PPRROOCCUURREEMMEENNTT
SSOOMMEE SSUUCCHH AASSPPEECCTTSS AARREE::
TTRRAANNSSPPAARREENNCCYY IINN TTEENNDDEERRIINNGG SSYYSSTTEEMM
RREECCEEIIPPTT AANNDD OOPPEENNIINNGG OOFF TTEENNDDEERRSS
TTIIMMEE BBOOUUNNDD PPRROOCCEESSSSIINNGG OOFF PPRROOCCUURREEMMEENNTT
AADDOOPPTTIIOONN OOFF IINNTTEEGGRRIITTYY PPAACCTT IINN MMAAJJOORR PPRROOCCUURREEMMEENNTT
TTRRAANNSSPPAARREENNCCYY IINN CCOONNTTRRAACCTTSS AAWWAARRDDEEDD
PPOOSSTTIINNGG OOFF DDEETTAAIILLSS OOFF CCOONNTTRRAACCTT OONN WWEEBBSSIITTEESS

33. CCVVCC GGUUIIDDEELLIINNEESS CCOOVVEERR VVAARRIIOOUUSS
IIMMPPOORRTTAANNTT AASSPPEECCTTSS OOFF PPUUBBLLIICC
PPRROOCCUURREEMMEENNTT
USE OF PRODUCTS WITH STANDARD SSPPEECCIIFFIICCAATTIIOONN
DDEELLAAYYSS IINN PPAAYYMMEENNTT TTOO CCOONNTTRRAACCTTOORRSS
CCOONNSSIIDDEERRAATTIIOONN OOFF IINNDDIIAANN AAGGEENNTTSS
MMOOBBIILLIIZZAATTIIOONN AADDVVAANNCCEE
NNEEGGOOTTIIAATTIIOONN WWIITTHH LL11

34. TTRRAANNSSPPAARREENNCCYY IINN TTEENNDDEERR DDOOCCUUMMEENNTTSS
EEsssseennttiiaall ccrriitteerriiaa lliikkee::
SSppeecciiffiiccaattiioonn,,
PPrree--qquuaalliiffiiccaattiioonn,,
TTeennddeerr EEvvaalluuaattiioonn,,
DDiissqquuaalliiffiiccaattiioonn,, eettcc..
OOnn tthhee bbaassiiss ooff wwhhiicchh tteennddeerr iiss ggooiinngg ttoo bbee eevvaalluuaatteedd aarree ttoo bbee
cclleeaarrllyy mmeennttiioonneedd iinn tthhee tteennddeerr ddooccuummeenntt..
WWhheerreevveerr rreeqquuiirreedd,, tthhee oorrggaanniizzaattiioonn sshhoouulldd ffoollllooww TTWWOO--
BBIIDD SSYYSSTTEEMM..

35. UUSSEE OOFF WWEEBBSSIITTEE FFOORR NNIITT AANNDD TTEENNDDEERR
DDOOCCUUMMEENNTTSS
IInn aaddddiittiioonn ttoo aaddvveerrttiisseemmeenntt aass aanndd wwhheenn
rreeqquuiirreedd,, eevveerryy tteennddeerr ttoo bbee uuppllooaaddeedd oonn
IInnssttiittuuttee WWeebbssiittee aanndd CCPPPPPP aalloonngg wwiitthh
tteennddeerr ddooccuummeenntt..

36. RREECCEEIIPPTT AANNDD OOPPEENNIINNGG OOFF TTEENNDDEERRSS
TTeennddeerrss aarree ttoo bbee rreecceeiivveedd bbyy ssppeecciiffiieedd ddaattee aanndd ttiimmee.. IInn ccaassee ooff
aannyy cchhaannggee iinn aabboovvee,, nneeeeddss ttoo bbee nnoottiiffiieedd oonn wweebbssiittee oorr iinn
nneewwssppaappeerrss aass tthhee ccaassee mmaayy bbee..
TTeennddeerrss aarree ttoo bbee rreecceeiivveedd tthhrroouugghh tteennddeerr bbooxx oonnllyy..
WWhheerree tteennddeerrss aarree rreeqquuiirreedd ttoo bbee ssuubbmmiitttteedd bbyy hhaanndd,, nnaammeess aanndd
ddeessiiggnnaattiioonnss ooff aattlleeaasstt ttwwoo rreecceeiivviinngg ooffffiicceerrss aarree ttoo bbee mmeennttiioonneedd
iinn tthhee tteennddeerr ddooccuummeennttss aanndd aallssoo ddiissppllaayyeedd aatt tthhee eennttrraannccee //
rreecceeppttiioonn ooff tthhee oorrggaanniizzaattiioonn..
TTeennddeerrss aarree ttoo bbee ooppeenneedd oonn tthhee ssttiippuullaatteedd ddaattee && ttiimmee iinn tthhee
pprreesseennccee ooff iinnddeennttiinngg tteennddeerreerr..

38. DOs IN PURCHASE MANAGEMENT
• Be Clear about the required end-uses of the
items to be purchased.
• Project a standard, well defined, straight
forward and broad based technical
specification for the items to be purchased.
• Ensure sufficient lead-time for the supply.
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39. DOs IN PURCHASE MANAGEMENT
• Ensure that commercial conditions of the
tender enquiry are attainable and within the
framework of the laws of land.
• Try to avoid proprietary purchases and aim
for obtaining competitive tenders.
• Check for availability of required funds.
• Ensure that suppliers are competent and
eligible.
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40. DOs IN PURCHASE MANAGEMENT
• Allow sufficient time to tenderer to prepare
and send their tenders.
• Follow standard transparent norms for receipt
and opening of tenders.
• Compare tenders on equitable basis with
reference to terms and conditions of tender
enquiry.
• Check reasonableness of quoted price(s).
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41. DOs IN PURCHASE MANAGEMENT
• While drafting the contract, put all required
terms and conditions in it.
• Ensure that the concerned tenderer has
agreed to all the terms and conditions being
put into the contract.
• Watch for unconditional acceptance of
contract by suppliers.
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• Above all, be transparent.

42. DON’Ts IN PURCHASE MANAGEMENT
Do not write ambiguous and vague
specification for the items to be purchased.
• Do not project specifications and other terms
and conditions which are beyond the reach
of the industry.
• As per CVC guidelines, Do not negotiate with
any suppliers. If necessary, then only with L1
bidder only.
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43. DON’Ts IN PURCHASE MANAGEMENT
• Do not give undue preference to a tenderer at
the cost of other tenderers.
• Do not place a contract without ensuring
required fund.
• Do not proceed with any verbal agreement.
• Do not delay payment to the suppliers when
due.
• Do not create a situation where ordered item
arrived but the site not yet ready for
installation.
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44. DON’Ts IN PURCHASE MANAGEMENT
After placing a contract, the very first step is
obtaining the supplier’s unconditional
acceptance of the contract.
This is extremely important for a successful
contract.
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45. Thank you for your patience!