Procurement of Goods and Condemnation
of Un-serviceable Stores
-Dr. Lalit Kumar
1. Procurement of Goods in Government
In earlier article, we studied
how tender
and Central Vigilance Commission are concerned with each other. In procuring goods and services,
there are rules generally followed by the procuring authorities in Government
organizations. The rules can easily be understood by categorizing the purchases
in various types like, (i) Purchase Without Quotation, (ii) Purchase with
Quotations, (iii) Tender System, (iv) Online Procurement.
(i) Purchase Without Quotation:
The small purchases cannot afford the
cost of tendering. Therefore, the authorities should decide to procure the
small purchases without quotation or tender. The limit for the purchases
without quotation should be fixed and such limit should be compliance strictly
to avoid the financial irregularities in procurement. In General Financial Rules
or State Government’s Financial Rules, the limit should be cited properly,
however the limit can be revised by issuing the circular or notification by the
competent authorities. In such purchases, the procuring authority certifies,
“I, …… am personally satisfied that these goods purchased are of the requisite
quality and specification and have been purchased from a reliable supplier at a
reasonable price.”
In Government of India or central
government department, the limit of such purchases is up to Rs. 25000 in each
occasion. In Haryana Government, the limit of such purchases is up to Rs. 10000
in each occasion.
(ii) Purchase with Quotation:
In case of purchase amounting more than
the specified limit of ‘purchase without quotations’; then quotation can be
used up to a specified limit and in case such limit crossed, tender system is
adopted for procurement of goods and services. In purchase with quotation or
tender; it is required to frame a committee of at least three officers. The
committee firstly survey the market and check the rates of the goods to be
procured. The quality standards and specifications are also determined. In
order to identify appropriate supplier with ensuring Economy, Efficiency, and
Effectiveness in procurement; quotations from at least three vendors or
suppliers are collected. After collecting the quotations, a comparative
statement is prepared and jointly certified by the committee members with
comments from which supplier it is economical to procure the goods.
In Government of India or Central
Government Departments, the limit for such purchases is for amount within the
limits of Rs. 25001 to Rs. 100000. In Haryana Government, the limit of such
purchases is for amount within the limits of Rs. 10001 to Rs. 100000.
2. Condemnation and Disposal of Store Articles
The
Financial Rules contain the provisions for disposal of unserviceable store
articles or surplus stores. In Haryana Government, the Punjab Financial Rules are
followed. It is given in rules that the Director, Supplies and Disposal Haryana
is entrusted for condemnation and disposal of store articles however in case of
vehicles, the office of Deputy Commissioner constitute Condemnation Committee
for disposal of unserviceable vehicles.
(a) Disposal of Goods other than Vehicles:
In
every quarter, the Head of Departments prepare a statement of unserviceable articles
or surplus stores and forward the same to Department of Supplies and Disposal
on 1st Jan, 1st April, 1st July, and 1st
October of each year.
The
book value of the stores decides at which level the goods can be disposed
through auction. If the book value is up to Rs. 10,000 then the goods are
disposed at the level of Department but if the book value is more than Rs.
10,000 then a statement of the goods with value sent to the Department of
Supplies and Disposal and put up to a Condemnation Board consisting for five
persons including representative of indenting department, one from Department
of Supplies and Disposal, One from the Deputy Commissioner office of the
concerned District, and two from the Government Departments depending upon the
nature of goods in question or goods to be disposed through auction i.e. may be
from Irrigation Department, Public Health, Prisons, Police, Agriculture,
Industries, Health Services, Forests etc.
Since
the statement of goods to be disposed, received in each quarter; the board
members meet in the month of Jan, Apr, Jul, and October and fix the reserve
prices of the store articles in the inspection report and the report is sent by
the indenting department to the concerned Administrative Department for
declaring the stores unserviceable or Surplus for disposal. After getting the
approval of Administrative Department, the indenting department send the case
to Department of Supplies and Disposal (DSND). The DSND refer the case to
Department of Industries for auction.
Auction of Unserviceable or Surplus Stores:
The
DSND invites tenders for auction of the stores. However, the sanction is
required to Department of Industries if the book value of the stores is more
than 25,000. If it is less than Rs. 25,000 then no sanction required from
Department of Industries.
(b) Disposal of Vehicles:
The
Deputy Commissioners at District Level under their chairmanship with the help
of committees including one representative of indenting organization,
Sub-Divisional Officer (Mechanical) from PWD (B&R) Department, and Works Manager
of Haryana Roadways. An auction notice is published in the press and the
vehicles are brought to the venue of auction at least one hour before the
scheduled time of auction. The GST also collected (in addition) to the auction
price settled by the bidders.
Auction of Vehicles:
An
amount for Rs. 500 collected as earnest money from each bidder and the
successful bidder requires to deposit 25% of the highest bid on the spot and
the remaining 75% is required to be deposited within 72 hours. After getting
the full payment, the delivery of vehicle is made with Sales order to the
successful bidder.
In next article, it is detailed how tenders are floated and types of tenders in Government.
Copyright
© 2020 Dr. Lalit Kumar. All rights reserved.
