BFP 5
BFP 5
BFP 5
(spmm@nair.railnet.gov.in)
Public vs Private Procurement?
Public Procurement Framework in India
Statutory Framework
The Constitution of India Acts of Parliament
Demand
≠ Supply
Non- Stock
Stock Items
Items
7
Functions of • Planning
Materials • Procurement
Management • Warehousing
Department • Inventory
in Indian Control
Railways • Scrap Disposal
• Distribution
• Value Analysis/
Cost Reduction
Stores Organization in Railways
RAILWAY BOARD
Member (T & RS )
AM/RS
CMM1 CMM2
AMM1
At Field Level At divisional
(Depot) level
Dy.
Sr. DMM
CMM
SMM DMM
Zonal Railways: 17
Production Units: 8
Stock Items: 2,42,000 (Approx.)
Stocking Depots: 306
Non-Stock Items: Equally Large
1500 1364
1032
1000
500
0
73
19
Material Codification:
Stock Items- SEMI-Significant
PL Number: 90 35 058 3
Calculation of check digit
** ** *** *
A B C D
A-Main Group: Type of Equipment: 00-09 Steam Locos,
10-19 Diesel Locos, 20-29 Electric Locos, 30-39 C&W
items. (Total 76 Groups)
B-Sub Group: Basically major assemblies, form sub
groups. Brake fittings, Power Pack, Bogie items etc.
C-Serial number: Serial of item in the assembly. This
number by itself does not give clear idea of the item.
D-Check Digit: Important to check the correctness of the
PL No./ (Modulus 11, Ex: 38 981580, 30851116?).
20
STOCK ITEMS – Planning by user.
1. Creation of new PL or inclusion of imprest for an existing item:
User submits a standardisation format with:
Description.
Specification.
21
Stocking Proposal:
Renewal of imprest
Immediately after end of financial year, prepare the requirement
vis-à-vis last 3 years consumption.
Write justifications for increase in EAC, wherever more quantity is
required. Separate justification for ‘A’ category items in the
standardisation form in case of increase in EAC.
Send to HQ office after funds provisioning/associate Accounts
vetting and sanction of DRM/CWM.
Follow up with own HQ office till it reaches PCMM office.
Since finance concurrence is required for ‘Ä’ category items, give all
the details to HQ officers for reply to finance.
After finance concurrence and approval of PCMM, revised EAC is
entered in iMMS. Depot issues materials as per revised EAC.
23
Demand Forecast:Stock Items
• EAC = Estimated Annual Consumption.
• EMC = Estimated Monthly consumption.
• AAC = Anticipated Annual Consumption.
• BASIS (Regular consumption Items)
• Past 3 years consumption, stock-outs considered
• Trend of past consumption
• Additional information on Current / future activity level;
phasing out of certain type of RS or other M&P
24
Recoupment of Stock Items
1. Annual Indent/Estimate System (P-System):
• A fixed interval review system
• CP(12/24 months), IP
25
Net Requirement = [{(MC×IP)+(MC×CP)+(BSR)} – {SOH+CVD}]
= [{(100/12)×13)+((100/12)×12)+(100/12) ×1} – {97+0}]
= [{(108)+((100)+(8)} – {97}]
= [119]
EOQ
MAX
0
L T
Qty
TIME
BS
Item History Sheet from iMMS
Dealing with non-stock demands:
Planning of requirement is responsibility of
user.
Estimate: Most important point in preparation
of NSR is estimate.
Recent LPR from own/Other Railways.
market survey/ general inflation in case LPO is
more than one year old.
In case no LPR is available, Budgetary Quotation.
Budgetary quotation should include all-inclusive
cost up to the consignee (FOR destination, door
delivery), taking into account GST, ED, Freight,
Packing and other charges. Warranty as per
requirement.
Dealing with non-stock demands:
32
6. Quotation: from Cash imprest by Cash purchase.
PROCUREMENT OF STOCK/ NON-STOCK ITEMS
Revised SOP:
1. Tender Committee cases:
I. PHOD level, TAA is GM - Above 500 crores.
II. PHOD l, TAA AGM – 200 - 500 crores.
III. HOD level, TAA is PCMM – 10 - 200 crores.
IV. JAG level, TAA CMM –1 - 10 crores.
V. SS level TC – 0.5 – 1 Cr. (Only Stores & Finance members)
2. DA cases: DA powers:
VI. Dy. CMM – Up to 50L.
VII. SMM – Up to 10L.
VIII. AMM – Up to 5L.
3. Non-stock GeM items:
User deptt– Rs.25,000/- (self-certification), annual ceiling limit: 10L.
4. Local Purchase: 1L, single quotation: Rs. 25,000/-.
5. NS certification will be done by Sr. DMMs in divisions.
PROCUREMENT OF NON-STOCK ITEMS
6. Signing of NSRs and essentiality certificate –
(a) JS – Rs. 25,000/-
(b) SS- Rs. 25,000/- - 2L/-.
(c) JAG/SG – Rs. 2L/- - Rs. 15L
(d) SAG – Rs 15L – Rs 45L.
(e) PHOD/CHOD – Above Rs. 45L
7. Signing of PAC –
a) JS – up to Rs. 75,000/-
b) SS – Up to 2L.
c) JAG/SG – Up to Rs. 15L.
d) SAG – Up to Rs. 25L.
e) PHOD/CHOD – Above Rs. 25L.
PROCUREMENT OF NON-STOCK ITEMS
procurement
Contract Performanc
in
e
Contract award
Indian Railways
Tender evaluation
Tender solicitatio
n
Tender preparation
Requirement specificat
ion
Procurement Planni
ng
Need
38
Summary &
Questions??
Thank You