Procurement Management

Learning Objectives
• Understand the importance of project
procurement management and the increasing
use of outsourcing for information technology
projects.
• Discuss what is involved in planning contracting,
including the creation of various procurement
documents and evaluation criteria for sellers.

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 Importance of Project Procurement
Management

• Procurement means acquiring goods and/or

services from an outside source.
• Other terms include purchasing and outsourcing.
• Experts predict that global spending on computer
software and services will continue to grow.
• India is the leading country for U.S. outsourcing.

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 Why Outsource?
• To reduce costs.

• To allow the client organization to focus on its

core business.

• To access skills and technologies.

• To provide flexibility.

• To increase accountability.
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 Contracts
• A contract is a mutually binding agreement that
obligates the seller to provide the specified
products or services and obligates the buyer to
pay for them.

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• CHAPTER-I
• GENERAL PROVISIONS

• CHAPTER-II
• PROCUREMENT PLANNING
– Procurement planning
– Limitation on splitting of procurement
– Specifications
– Approval Mechanism

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• CHAPTER-III
• ADVERTISEMENT
– Method of advertisement
• One hundred thousand rupees and up to the limit of two million
rupees on the website.
• Exceeding two million rupees shall be advertised on the website, if
any, and in at least two national daily
• Newspapers of wide circulation, one in English and one in Urdu
– Response Time

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• CHAPTER-IV
• PREQUALIFICATION, QUALIFICATION AND
DISQUALIFICATION
Prequalification

• CHAPTER-V
• METHODS OF PROCUREMENT
Bidding Process
Submission of Bids
Bid Security
Bid Validity
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• CHAPTER-VI
• OPENING, EVALUATION AND REJECTION OF
BIDS
– Opening of bids
– Evaluation criteria
• CHAPTER-VII
• PROCUREMENT OF CONSULTANCY SERVICES

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• CHAPTER-VIII
• ACCEPTANCE OF BIDS AND AWARD OF CONTRACT
– Acceptance of Bids
– Performance Guarantee

• CHAPTER-IX
• MAINTENANCE OF RECORD AND FREEDOM OF
INFORMATION
– Record of procurement
– Public access and transparency
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• CHAPTER-X
• REDRESSAL OF GRIEVANCES AND SETTLEMENT
OF DISPUTES
• Redressal of grievances by the procuring agency
• Any bidder feeling aggrieved by any act of the
procuring agency after the submission of his bid
may lodge a written complaint concerning his
grievances not later than ten days after the
announcement of the bid evaluation report
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