Manual for Procurement of Works 2019

Description
This is an another opportunity that we have to express our gratitude and sincere thanks to all our readers for inspiration to bring out the Revised Edition of Manual for Procurement of works, 2019 issued by Govt. of India, Ministry of Finance, Department of Expenditure. In the last few years, the Government of India has issued new instructions in the domain of publice procurement. Some of these important changes include introduction of Central Public Procurement Portal (CPPP), Government e-Marketplace (GeM), preferential market access for micro and small enterprises, inclusion of integrity pact, etc. The GFR has been revised comprehensively in March 2017 covering inter-alia these set of new instructions. Consequently the Manual of Procurement too has been revised after the release of GFR. 2017.
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Contents
1.    Introduction to Procurement of Works
1.1    Procurement Rules and Regulations; and this Manual
1.2    Clarification, Amendments and Revision of this Manual
1.3    Applicability of this Manual
1.4    Basic Aims of Procurement - Five R's of Procurement
1.5    Fundamental Principles of Public Procurement
1.6    Standards (Canons) of Financial Propriety
1.7    Public Procurement Infrastructure at the Centre
1.8    Legal Aspects Governing Public Procurement of Works
1.9    The Law of Agency-applicable to procurement of Works
1.10   The Basic Principles of undertaking works
1.11   Processing of Public Works
1.12   Administrative Control and Powers to Sanction
2.    Preparation of Estimates
2.1    Perspective Planning for works
2.2    Preparation of Preliminary Project Report (PPR) or Rough Cost Estimate
2.3    Acceptance of necessity and issue of in -Principle Approval
2.4    Preparation of Detailed Project Report (DPR) / Preliminary Estimates (PE)
2.5    Administrative Approval and Expenditure Sanction (A/A and E/S)
2.6    Detailed Designs, Detailed Estimates and Technical Sanction 
2.7    Appropriation of funds
2.8    Reference Documents used in preparation of Estimates
2.9    Procurement Planning
3.    Agency for Procurement, Types of Contract, Bidding Systems and Modes    
       of Procurement
3.1    Agency for Procurement               
    3.1.1     Directly by the Ministry/Department       
    3.1.2     Public Works Organisations       
    3.1.3     Public Works PSU/Organisations       
    3.1.4     Procedure for Assigning Work to PWO or PSU/Organisations
3.2    Types of contact
    3.2.1     Lump sum (Fixed Price) Contract
    3.2.2     Item rate (Unit Rate) Contract
    3.2.3     Percentage Rate Contract
    3.2.4     Piece Work Contract
    3.2.5     Engineering, Procurement and Construction (EPC) Contracts   
    3.2.6     Public Private Partnership (PPP)
3.3    Bidding Systems
    3.3.1    Single Stage Bidding System
    3.3.2    Single Stage Single Bid/ Envelope System (1S1E)
    3.3.3    Single Stage Two Envelope Systems (1S2E)
    3.3.4    Single Stage Multiple Envelope System (with post-qualification, 1S3E)
    3.3.5    Two Stage Bidding with Expression of Interest (Eol)
    3.3.6    Pre-qualification Bidding (PQB)
    3.3.7    Pre-Qualification Bidding - Risks and Mitigations:
3.4    Electronic Procurement (e-Procurement)
3.5    Modes of Tendering
    3.5.1    Open Tender Enquiry (OTE)
    3.5.2    OTE - Risks and Mitigations
    3.5.3    Global Tender Enquiry (GTE)
    3.5.4    GTE - Risks and Mitigations
    3.5.5    Limited Tender Enquiry (LTE)
    3.5.6    LTE - Risks and Mitigations
    3.5.7    Single Tender Enquiry (STE) or Selection by Nomination
    3.5.8    SLTE - Risks and Mitigations
    3.5.9    Award of Work through Quotations    
4    Preparing Bid Documents, Publication, Receipt and Opening of Bids
4.1    Bid Documents
4.2    Preparation of Bid Documents by Procuring Entity
4.3    Publication of Bid Documents
4.4    Issue/ Availability and Cost of tender documents
4.5    Eligibility and Qualifications of Bidders
4.6    Clarification of Tender Documents
4.7    Amendment of Tender Documents
4.8    Pre-bid Conference
4.9    Submission of Bids by Bidders
4.10   Receipt and Opening of Bids
4.11   Bid Security/ Earnest Money Deposit (EMD)
4.12   Performance Guarantee
 4.13   Security Deposit/Retention Money
 4.14   Sources and Verification of Bank Guarantees
 4.15   Safe Custody and Monitoring of Securities
 4.16   Goods and Services Tax (GST)
 4.17    Risks and Mitigations - Preparing Bid Documents, Publication, Receipt and
            Opening of Bids
 5    Evaluation of Bids and Award of Work
 5.1    Evaluation of Bids
 5.2    Schedule of Procurement Powers (SoPP)
 5.3    Preparation of Comparative Statement and Briefing Note
 5.4    Preliminary Examination
 5.5    Evaluation of Responsive Bids
 5.6    Deliberations by the Tender Committee
 5.7    Award of Work
 5.8    Evaluation of Bids and Award of Contract - Risks and Mitigations
 6    Execution and Monitoring of Works and Quality Assurance
 6.1    Execution and Monitoring of Work
 6.2    Quality Assurance
 6.3    Design Approvals
 6.4    Time Monitoring    
    6.4.1    Time At Large    
    6.4.2    Force Majeure (FM) Clause       
    6.4.3    Delays in Execution        
    6.4.4    Liquidated Damages and Incentives/Bonus     
    6.4.5    Extension of Time (EOT)
6.5    Financial Monitoring 
    6.5.1    Variations/Extra/Substituted Items 
    6.5.2    Measurement and Payment
    6.5.3    Mobilization Advance
    6.5.4    Plant, Machinery and shuttering Material Advance
    6.5.5    Secured Advance against Material brought to Site     
    6.5.6    Price Variation       
6.6    Commissioning and Documentation
 6.7    Closure of Contract      
    6.7.1    Completion of Contract   
    6.7.2    Material and Works Reconciliation        
    6.7.3    Reconciliation with the User Department
    6.7.4    Payment Reconciliation
6.8    Dispute Resolution Mechanism
6.9    Conciliation
6.10  Arbitration
6.11  Breach of Contract, Remedies and Termination    
    6.11.1    Breach of Contract
    6.11.2    Cancellation of Contract for Default    
    6.11.3    Termination of Contract for Insolvency
    6.11.4    Termination of Contract for Procuring Entity's Failure or Convenience
6.12    Preparation of Revised Project Report
7    Registration/Enlistment of Contractors and  Governance Issues
7.1    Contractor Relationship Management
7.2    Code of Integrity for Public Procurement (CIPP)   
    7.2.1    Introduction
    7.2.2    Code of Integrity for Public Procurement
    7.2.3    Obligations for Proactive Disclosures
    7.2.4    Punitive Provisions
    7.2.5    Conduct of Public Servants in Public Procurement- Risks and Mitigations
7.3    Integrity Pact (IP)
7.4    Development of New Sources and Registration/ Enlistment of Contractors
7.5    Debarment
7.6    Project Management
Annexure
Annexure 1:    Procurement Guidelines
Annexure 2:    Bid Opening Attendance Sheet cum Report
Annexure 3:    Tender Committee Minutes Format
Annexure 4:    Invitation and Declaration for Negotiations
Annexure 5:    Format of Revised Offer in Negotiations
Annexure 6:    Letter (Notification) of Award (LOA) of Contract
Annexure 7:    No Claim Certificate
Annexure 8:    A Sample MOU
Annexure 9:    Flowchart of Process of Procurement of Works
Annexure 10:  Additional Resources relating to Procurement of Works
Appendix
Appendix 1:    Advanced Concepts of Value for Money and Fundamental Principles
                         of Public Procurement
1.0    The Concept of Value
2.0    Total Cost of Ownership
3.0    Value for Money 
4.0    Fundamental Principles of Public Procurement
Appendix 2:    Legal Aspects of Public Procurement 
1.0    Relevant Provisions of the Constitution of India 
2.0    Salient Features of the Indian Contract Act 
3.0    Salient Features of the Indian Arbitration & Conciliation Act 1996 and    
          Arbitration and Conciliation (Amendment) Act, 2015
4.0    Salient Features of Competition Act, 2002 relating to Anti-competitive Practices
5.0    Salient Features of the Whistle Blowers Protection Act, 2011 and the Whistle    
         Blowers Protection (Amendment) Act, 2015
Appendix 3:    Electronic Procurement (e-Procurement)    
1.0    Electronic procurement (e-procurement)
2.0    Service Provider
3.0    Process
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