Mandate of Directorate of Purchase and Stores (DPS)

1.PROCUREMENT OF MATERIALS:
RIGHT MATERIAL
 RIGHT QUALITY
 RIGHT QUANTITY
 RIGHT PRICE
 RIGHT SOURCE
 RIGHT PLACE (DELIVERY)
 RIGHT TIME
 Mandate of Directorate of Purchase and
Stores (DPS) contd.
2. Storing
3. Issuing the material to the user department
when required
4. Disposal of scrap

The entire activity is termed as:

Materials Management
 DPS FUNCTIONS ARE IN LINE WITH
 GENERAL FINANCIAL RULES
 RULES AND GUIDELINES RECEIVED FROM GOVERNMENT OF INDIA /
DEPARTMENT OF ATOMIC ENERGY FROM TIME TO TIME
 GUIDELINES FROM CENTRAL VIGILANCE COMMISSION RECEIVED
FROM TIME TO TIME
 GUIDELINES FROM GOVERNMENT IN RESPECT OF MSE/NSIC
REGISTERED SUPPLIERS – PRICE PREFERENCE
 GUIDELINES FROM GOVERNMENT IN RESPECT OF CLASS I LOCAL
SUPPLIERS AS PER PUBLIC PROCUREMENT POLICY – PRICE
PREFERENCE ( Make in India policy)
 GUIDELINES FROM GOVERNMENT IN RESPECT OF 358 ITEMS
RESERVED TO BE PROCURED FROM MSE/KVIC (PURCHASE
PREFERENCE)
 GUIDELINES FROM GOVERNMENT IN RESPECT OF PROCUREMENT
FROM PHARMA COMPANIES– PURCHASE PREFERENCE
 Public Procurement Policy
Make In India

RULE 153 (iii) of GFR

 Only class I and class II suppliers can bid
 Class I supplier – whose local content is equal to or more
than 50% or as prescribed by the Nodal Ministry
 Class II local supplier – whose local content is more than
20% but less than 50%
 Non local supplier – whose local content is less than or
equal to 20%

May 31, 2024 Foundation Course on Project Management on Nuclear Facilities 5

 Public Procurement Policy
Make In India

RULE 153 (iii) of GFR

 Only class I and class II suppliers can bid
 Class I supplier – whose local content is equal to or more
than 50% or as prescribed by the Nodal Ministry
 Class II local supplier – whose local content is more than
20% but less than 50%
 Non local supplier – whose local content is less than or
equal to 20%

May 31, 2024 Foundation Course on Project Management on Nuclear Facilities 6

 Public Procurement Policy
Make In India
RULE 153 (iii) of GFR
• Purchase Preference –
 To Class I supplier
o If L1 is not a class 1 supplier, 50% order
will be place on L1 supplier and balance
50% shall be placed on class I supplier
falling within 20% and subject to
matching price with L1.

May 31, 2024 Foundation Course on Project Management on Nuclear Facilities 7

 Public Procurement Policy
Make In India
RULE 153 (iii) of GFR
• Purchase Preference –
 To MSE firms
o Margin of Purchase preference – 15%.
o In case L1 bidder is not an MSE firm,
MSE firm gets preference for 25% of order
in case the price falls within 15% of L1
price and subject to matching the price
with L1 firm.
May 31, 2024 Foundation Course on Project Management on Nuclear Facilities 8
 Restrictions On Procurement From Countries Sharing
Land Border With India

RULE 144 (xi) OF GFR

o Bidder sharing land border with India is
eligible to bid only if the bidder is registered
with Department for Promotion of Industry
and Internal Trade (DPIIT).

May 31, 2024 Foundation Course on Project Management on Nuclear Facilities 9

 MSME
To encourage Indian manufacturers and Promote small
industries
•358 items exclusively reserved
Eg : Shoes, Socks, Soap,
 Procurement Process Flow Diagram
RECEIPT OF
INDENT TENDERING
OFFERS

APPROVAL OF RECOMME- EVALUATION

CA/SEC/TC etc DATIONS OF TENDER

PURCHASE PURCHASE INSPECTION/

RECOMMENDA ORDER SHIPPING
TION RELEASE RELEASE

PAYMENT ACCEPTANCE SUPPLY

May 31, 2024 Foundation Course on Project Management on Nuclear Facilities 11

 WHY A PROCEDURE?

ADVANTAGES OF HAVING PROCEDURE :

 COMPATIBILITY
 USER FRIENDLY
 UNIFORMITY
 UN-AMBIGUIOUS OR NO ROOM FOR MISUNDERSTANDING

GOVT. GUIDELINES & POLICY DIRECTIVES ARE GIVEN IN THE FORM OF

PROCEDURE FOR COMMON METHOD IN DISRCHARGING THE ASIGNED
FUNCTIONS.

DPS PURCHASE PROCEDURE IDEALLY SUITS FOR BOTH R&D UNITS AND
PRODUCTION PLANTS TO MEET THEIR NEEDS.
 EVALUATION OF TENDER/ PURCHASE
RECOMMENDATIONS Contd.
• PREPARATION OF COMAPRATIVE STATEMENT OF TENDERS(Price) CST
• EVALUATION OF TENDERS STRICTLY AS PER TENDER SPECIFICATIONS
• TECHNICAL COMPARATIVE STATEMENT
• ACCEPTANCE OR OTHERWISE OF OFFERS
• COMMERCIAL/PRICE COMPARISON
• WHETHER GOVERNMENT POLICIES WITH RESPECT TO
PURHASE PREFERNCE TO MSE FIRMS AND CLASS-I LOCAL SUPPLIERS
CONSIDERED
• Whether the items are reserved to be procured from MSEs (358 Items)
• DRAFT ORDER TECHNICAL AND COMMERCIAL
– PRICE QUOTED IN SAME CURRENCY
• ACCEPTANCE CRITERIA
• WHETHER PRICE NEGOTIATIONS RECOMMENDED ( TO BE AVAOIDED )
• IF INSISTED UPON EXPECTED REDUCTION IN PRICE HAS BEEN INDICATED
 EVALUATION OF TENDER/ PURCHASE
RECOMMENDATIONS Contd.
• APPROVALS OF COMPETENT AUTHORITY
• STRICTLY AS PER DRAFT ORDER
• NO WAIVER OF PDI OR PBBG IF SPECIFIED IN INDENT PART II
• FILLING UP OF REQUIRED SPC/S&EC PROFORMA
• AVAILABILITY OF FIM
• SITE READINESS FOR INSTALLATION AND COMMISSIONING
• END-USE STATEMENT TO HAVE APPROVAL OF GROUP
DIRECTOR
• POST SUPPLY INSPECTION APPROVAL OF UNIT HEAD
ESSENTIAL
• CERTIFICATION OF AVAILABILITY OF FUNDS
 REJECTION OF OFFERS
• ONLY BASED ON THE TENDERED
SPECIFICATIONS/CONDITIONS
• NO REJECTION OF OFFERS DUE TO ITS
COUNTRY OF ORIGIN/POST SUPPLY
INSPECTION
• EVALUATION/ELIGIBILITY CRITERIA
 PRICE NEGOTIATION
In case recommended offer is much higher than the indent
estimate, negotiations to be conducted.

Negotiation is to be conducted only with L1/Lowest

technically acceptable offer as per CVC guidelines.

Concurrence of IFA, DPS and approval of Director, P&S are to

be obtained prior to conducting negotiations.

Negotiation committee constituted by Director, P&S

involving members from finance and user department.

Outcome of negotiations should result in win-win

situation.
 Concurrence of IFA, DPS and approval of
Director, P&S are to be obtained prior to
conducting negotiations.

Negotiation committee constituted by

Director, P&S involving members from
finance and user department.

Outcome of negotiations should result in

win-win situation.
 Minutes of meeting to be recorded and
signed by all the participants of negotiation