ORIENTATION PROGRAM FOR IIT BOMBAY

1. 1
Orientation program on
PURCHASE PROCEDURE
For IIT Bombay

19. 19
PUBLIC PROCUREMENT
What is Public Procurement / public buying?
Public buying is different from private
buying in many ways.
Public buying needs to be transparent and
follow applicable rules, regulations and
existing policies.

20. 299. Contracts
(Article 299, Constitution of India)
(1) All contracts made in the exercise of the
executive power of the Union or of a State shall
be expressed to be made by the President, or by
the Governor of the State, as the case may be,
and all such contracts and all assurances of
property made in the exercise of that power shall
be executed on behalf of the President or the
Governor by such persons and in such manner as
he may direct or authorise.

21. 21
GUIDELINES FOR PUBLIC BUYING

22. VARIOUS WATCH-DOGS

27. Rule 144 OF GFR – 2017
Fundamental principles of public buying
Every authority delegated with the financial
powers of procuring goods in public interest shall have the
responsibility and accountability to bring efficiency,
economy, transparency in matters relating to public
procurement and for fair and equitable treatment of
suppliers and promotion of competition in public
procurement.

28. FIVE GOLDEN RULES Of PURCHASES

29. Factors affecting the Right Price
Early Advance
Payment
without Bank
Guarantee
Advance
Payment against
Bank Guarantee
Payment within
30 days after
receipt of
Materials
Payment
Against
Delivery
Payment after
30 days from
date of receipt
of Materials

30. 30
REASONABLE PRICE
Last purchase price of same (or in its
absence, similar) item through past
Pos.
Current Market Price of the same or
similar item.
Price of raw materials which goes into
the item.

31. 31
PURCHASE FLOW
We encourage to discuss project proposal itself where
complex/major procurement is involved.
1) Check Budget
2) Requirement / Detail item specification / quantity
3) Create Asset Number if it is asset using ASC Portal.
4) Constitute Purchase Committee and take approval.
5) Create PR - ME51N
6) Create RFQ – ME41N
7) Send RFQ to minimum four bidders
8) Publish the Tender on CPPP - MANDATORY
9) Obtain minimum three quotations

32. 32
PURCHASE FLOW...Cont.
10) EMD return / submission to Cash Section.
11) Send rejection letter to technically disqualified
bidders.
12) Open financial bid of technically qualified bidders.
13) Maintain quotations – ME47N
14) Purchase Committee Report
15) Create DPO – ME21N
16) Send file to MMD

33. 33
MM PROCESS
1) Scrutiny of files.
2) Approvals from Competent Authorities.
3) Send PO to Vendor & others.
4) Returning EMD to Unsuccessful Bidders.
5) Obtain Order Acknowledgement (OA) from Vendor.
6) Obtaining Performance Bank Guarantee (PBG).
7) On receipt of PBG, release EMD to Successful
Bidder.
7) Followup with vendor for timely delivery.
8) After receipt of material/Inoice, generate GRN
(103).

34. MODE OF PAYMENT
Wire Transfer/
TT
Letter of Credit
100% Advance
Payment
Within 30 Days
after receipt of
material
100%
Payment
through LC
90% + 10%
through
Letter of Credit

35. IMPORT PROCESSES
1) Blocking of Fund for Freignt/Insurance.
2) LC or WT request letter to Account Section.
3) Swift message to Beneficiery Bank and IIT Bombay
for intimation.
4) Pickup of material CHA.
5) Pre Alert for arrival of shipment through E-Mail.
6) MMD: Concenssional Custom Duty Exemption Certificate,
Authority Letter, GATT Declaration, IEC Copy, GST
Registration Certificate, DSIR Copy and handover the same
to CHA for custom clearance.

36. IMPORT PROCESSES
7) CHA deliver the material at MMD.
8) MMD generate Goods Receipt Note (GRN-103).
9) delivery of the material at concern Department.
10) Dead Stock Register entry & GRN at Dept.
11) Send it back to MMD for generating GRN -105.
12) Releasing of Balance Payment and closing of file.

37. 37
INTERNATIONAL COMMERCIAL TERMS
(INCOTERMS)
• Published by the Internal Chamber of
Commerce, Paris.
The purpose of INCOTERMS is to provide a
set of International Rules dealing with the
relations between buyers and sellers in
foreign trade.

38. INCO-TERM
Ex
Works
FCA/
FOB
CIP/
CIF
DAP/
DDP
IITB
Authorised
CHA
will Pickup
The
consignment
from
Vendor
Warehouse
IITB
Authorised
CHA
will Pickup
The
consignment
from Vendor
Nearest
Airport
(Foreign)
Vendor will
deliver
the
material
Upto
Mumbai
Airport
Vendor will
deliver
the
material
Upto
IIT
Bombay

39. 39

40. 40
MM PROCESS
9) Stock entry for satisfactory installation/delivery.
10) MMD release GRN (105).
11) MMD will park invoice in ERP.
12) Forward the payment/settlement note along with Original
Invoice and GRN to Dean R&D/Main Accounts/Dean ACR.
13) Observe contract till warranty period.
14) PBG of Successful Bidder needs to be returned after
warranty period.
15) Checking execution of all the PO activitie.
16) Closure of File needs to be done.
17) Maintain record for 7 years.

41. 41
TYPES OF PURCHASES
(As per General Financial Rules-2017)
1. Direct Market Purchase without quotation. (upto Rs.
25,000).
2. Direct Market Purchase(LPC) (upto Rs. 2.50 Lakh).
3. Limited Tenders Enquiry(Upto Rs. 50 Lakh)
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.

42. PROCUREMENT PROCESS
https://www.youtube.com/watch?v=aPO3fwYnaXA

43. Tender Opening Procedure
Quotation / Tenders must be opened in the presence of
three members.
Suppliers may be allowed to attend tender opening
meeting.
All tenders / quotations including cover must be signed by
all members of the committee / Indentor or their
representative.
All corrections, overwriting should be attested by the
bidder and duly initialed by tender opining committee.

44. TENDER EVALUATION METHODS
1. Quality and Cost Based Selection (QCBS)
2. Quality Based Selection (QBS)
3. Fixed Budget Selection (FBS)
4. Least Cost selection (LCS)

45. E-PROCUREMENT
(Mandatory as per GFR-160)
E-procurement means purchase using network
through software. In includes :
1. Indent management
2. E-Tendering
3. E-Auctioning
4. Vendor management
5. Catalogue management
6. Purchase Order Integration
7. Order Status
8. Ship Notice
9. E-Invoicing,
10. E-Payment
11. Contract Management

46. Thank you !