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    Lecture 6. Procurement Methods and Ethics

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    Snehasish Ghosh
    This document discusses procurement methods and policies for private hospitals in India. It outlines various tender types like without obtaining bids, purchase committee, and rate contracts that can be used for purchases up to Rs. 1 lakh. For purchases above Rs. 1 lakh, it recommends two bid systems, limited tenders, and single tenders. The key stages of procurement like generating purchase orders, registration of suppliers, removal from registration, and blacklisting are also covered at a high level. The document provides guidance to private hospitals on customizing their procurement policies based on GFR 2017.

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    Lecture 6. Procurement Methods and Ethics

    Uploaded by

    Snehasish Ghosh
    42 views42 pages
    This document discusses procurement methods and policies for private hospitals in India. It outlines various tender types like without obtaining bids, purchase committee, and rate contracts that can be used for purchases up to Rs. 1 lakh. For purchases above Rs. 1 lakh, it recommends two bid systems, limited tenders, and single tenders. The key stages of procurement like generating purchase orders, registration of suppliers, removal from registration, and blacklisting are also covered at a high level. The document provides guidance to private hospitals on customizing their procurement policies based on GFR 2017.

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    This document discusses procurement methods and policies for private hospitals in India. It outlines various tender types like without obtaining bids, purchase committee, and rate contracts that can be used for purchases up to Rs. 1 lakh. For purchases above Rs. 1 lakh, it recommends two bid systems, limited tenders, and single tenders. The key stages of procurement like generating purchase orders, registration of suppliers, removal from registration, and blacklisting are also covered at a high level. The document provides guidance to private hospitals on customizing their procurement policies based on GFR 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    42 views42 pages

    Lecture 6. Procurement Methods and Ethics

    Uploaded by

    Snehasish Ghosh
    This document discusses procurement methods and policies for private hospitals in India. It outlines various tender types like without obtaining bids, purchase committee, and rate contracts that can be used for purchases up to Rs. 1 lakh. For purchases above Rs. 1 lakh, it recommends two bid systems, limited tenders, and single tenders. The key stages of procurement like generating purchase orders, registration of suppliers, removal from registration, and blacklisting are also covered at a high level. The document provides guidance to private hospitals on customizing their procurement policies based on GFR 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 42

    •Procurement

    Methods

    •Saurabh
    Banerjee
    https://doe.gov.in/sites/default/files/GFR201
    7_0.pdf
    •Private hospitals can use the
    GFR 2017 for customizing their
    own procurement policies
    •Depends on the level of
    hospitals
    •All the purchase activities in the government
    system resort to Tender Buying.
    •Private organizations may also resort to such a
    system when value of items to be procured is
    very high.
    •Tender system ensures transparency and
    competition among the vendors.
    •TYPES OF TENDERS
    •2.3.1. Without Obtaining
    Bids:
    2.3.1. Without Obtaining Bids:

    • a. Purchase of Goods without Quotations (Rule 145 GFR, 2005)


    • Purchase of goods up to the value of Rupees. 15,000/- (Rupees
    Fifteen Thousand) only on each occasion may be made without
    inviting quotations or bids on the basis of a certificate to be recorded
    by the competent authority in the following format ( Purchase
    manager in the hospital).

    • "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."
    •b. Purchase of Goods by
    Hospital Purchase
    Committee
    Purchase of Goods by Purchase Committee
    (Rule 146 GFR, 2017)
    • Purchase of goods costing above Rupees. 15,000/- (Rupees
    Fifteen Thousand) only and up to Rupees 1,00,000/-
    (Rupees One Lacks) only on each occasion may be made on
    the recommendations of a duly constituted Hospital
    Purchase Committee

    • The committee will survey the market to ascertain the


    reasonableness of rate, quality and specifications and
    identify the appropriate supplier.
    •c. Purchase of Goods
    Directly Under Rate
    Contract (Rule 147 GFR,
    2005)
    •Rate Contract
    BENEFIT OF RATE CONTRACT

    •A Rate Contract or a Rate


    Agreement is a procurement cost
    reduction strategy aimed at
    standardizing procurement prices for
    commonly procured, homogenous
    and price varying inputs.
    •Rate contract facilitates the
    purchase by reducing the
    internal administration time
    significantly but may not have a
    control on the supply time.
    •PURCHASE
    BY TENDER
    •2.3.2. By Obtaining Bids:
    • TWO BID SYSTEM
    • In the case of open/advertised tender bid shall be
    obtained in two parts:‐
    • a) Technical bid consisting of all technical details along
    with commercial terms and conditions
    • and
    • b) Financial bid indicating item wise price for the
    items mentioned in technical bid.
    • It may be clarified in the tender that the technical bid
    and commercial bid should be sealed by the bidder in
    separate covers
    • The technical bids are to be opened at the first stage
    and financial bids of only the technically acceptable
    offers evaluated by a competent committee or
    authority should be opened for further evaluation.
    • The purchase committee constituted for the purchase
    shall evaluate the technical bids.
    •b. Limited Tender Enquiry;
    Limited Tender Enquiry

    •Under limited tendering bids are solicited from


    a few reputed prequalified parties.
    •This could be either at International or National
    level
    •This method is applicable only when
    procurement value is below Rupees 25.00 Lacs
    •c. Single Tender Enquiry. (Rule
    154 GFR, 2017)
    •This is similar to Direct
    Contracting. As per GFR,
    procurement from a single
    source may be resorted to in the
    following circumstances:
    • (i) It is in the knowledge of the user department that only a
    particular firm in the manufacturing of the required goods.
    • (ii) In a case of emergency the required goods are necessary
    to be purchased from a particular source and the reason for
    such decision is to be recorded and approval of competent
    authority obtained.
    • (iii) For standardization of machinery and spare parts to be
    compatible to the existing sets of equipment's (on the
    advice of a competent technical expert and approved by
    competent authority), the required item is to be purchased
    only from a selected firm.
    •Purchase Order
    1.
    DISPOSAL NEED
    OPERATIONS 11. ActivityIDENTIFIED
    2 –Solution 2.
    GOODS MARKET
    RECEIVED RESEARCH
    WAREHOUSING

    10. 3
    DELIVERY BUDGET IDENTIFIED

    THE
    9. PROCUREMENT 4.
    PRESHIPMENT PROCESS CREATE/CHECK SPECIFICATIONS
    INSPECTION OR TOR

    5.
    8. SOLICITATION
    SUPPLIER PROCESS

    7. 6.
    PURCHASE CONTRACT
    ORDER APPROVAL

    29
    • Once bid is evaluated and the supplier is
    finalized the purchase order is made and duly
    signed by the competent authority.
    • Purchase order is a legally binding document
    which creates a contractual relationship
    between the buyer and seller as per terms and
    conditions agreed to in course of the deal.
    2.5.1 Basics of Purchase Order
    • Basic components included in a purchase order include

    1. Purchase order reference number


    2. Description of the materials and detailed specification
    3. Quantity required and delivery schedule
    4. Price and discounts
    5. Shipping / transport instructions
    6. Location where the materials are to be delivered
    7. Signature of the Materials Manager who can authorize the order
    8. Detailed terms and conditions
    Purchase Order
    • Purchase order is a formal contract which should have the following
    four basic elements:
    • (a) An agreement which is the result of an offer and an
    acceptance understood in a similar sense by both buyer and
    seller
    • (b) An obligation imposed on both parties
    • (c) Parties should be competent to the contract
    • (d) The purpose of the contract should be within the
    existing laws of the land.
    Basics of Purchase Order
    • Usually the purchase orders are prepared in multiple copies.
    1. Original copy of the purchase order with an acknowledgement copy
    is sent to the supplier.
    2. Acknowledgement copy usually is returned back to the with
    signature of the supplier.
    3. One copy is sent to the indenting department for records
    4. stores department which would eventually receive the
    consignment.
    5. In addition one copy is also sent to the accounts department
    •REGISTRATION OF
    FIRMS for supply of
    drugs to hospitals
    CRITERIA FOR REGISTRATION

    • Two years in business


    • Turn over for last two years
    • Latest balance sheet
    • Income tax clearance certificate
    • Sales tax registration certificate
    • Inquiry from the bankers / Market reputation
    • No pending inquiry
    • Premises inspection
    •REMOVAL FROM
    REGISTRATION LIST
    REMOVAL FROM REGISTRATION LIST
    Firm can be removed from the list without notice, if-
    –Non execution of contract
    –Firm is declared insolvent
    –Firm is running in losses for successive two
    years
    –Fails to furnish income tax clearance certificate
    –Does not renew the registration
    •BLACKLISTING OF
    FIRMS/VENDORS
    BLACK LISTING OF FIRMS
    • Found guilty of malpractices
    • Convicted for offences involving moral
    turpitude
    • Blacklisted by any other healthcare
    institutions
    • Product supplied found substandard or unfit
    for use
    • Furnished wrong details at the time of
    registration.
    •Procurement
    ethics in
    material
    management
    • Thanks

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