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Procurement of Non consultancy Services

Governments provide a variety of facilities to their citizen. The global trend is outsourcing such public facilities to achieve ‘Minimum Government – Maximum Governance’ and improve the quality of Services. Many IT, Goods, Works can also be bought as a Service. That is why NC Services are the next Gold Rush. Many developed nations are already service economies. However, procedures for the Procurement of NC Services are sketchy, and there is no Standard Bidding Document covering all types of Services. In Oct 2021 Finance Ministry issued customisable Model Tender Documents for NC Services - and Goods. This video gives the salient characteristics of the Procurement of NC Services. It details various types of Contracts/ BOQs - Output Admeasurement - Unit Rate - ; Input Admeasurement - Time-based - – Retainership Lump sum contract - Firm Fixed Price - ; Percentage Rate - Value of Transaction, Success Fee - . The Procurement of the Services Process is covered. Concept Paper/ Procurement Proposal contains Purpose/ Objective Statement; Service Outcomes Statement; Justification and In-principle administrative and budgetary approval is taken. Services and Activity Schedule is prepared, and final administrative approval and Financial Approval is taken. Procurement Planning - Bidding System, Mode of Procurement is the next step. GeM – Mandatory unless a non-availability certificate is obtained. The bidding system is Normally Single Stage, Price Based – Least Cost Selection. Normal Mode of Procurement: is Open Tender - two bids - Technical, Financial - greater than Rs. 10 Lakh. Limited Tender - less than Rs. 10 Lakh. And simpler procurement modes for less than Rs 2.5 Lakh. Single Source Selection - SSS - is used in exceptional circumstances. Rest of Processes -Bidding, Selection of Successful Bidder and Award of Contract is like other categories of Procurement. Contract Management is also like other categories of Procurement. Unique features of Contract Management are Initiation of Services; Service Level Agreement; Issue the notice to proceed and handover the Site. Unique Features -Execution and Monitoring are - Admeasurement of Inputs/ Outputs Variations in quantum/ Scope are usually there. Ongoing Monitoring of Performance Standards and Quality Assurance is done. Site Management is crucial – as in Works. This involves issues, e.g. Security, Safety; Labour Codes – Wages, Industrial Relations; Social Security, Occupational Safety, Health & Working Conditions, Govt Welfare Schemes, Licences, Insurances, Environmental Issues. Time Management – Delays, Suspension of Work, Defect Liability Period. LD is lesser 0.1%/ week; Damages for shortfall in Standards 0.1%; Max 10%. Handover Site and Assets back on Closure – handover to next Contractor Further Resources Trawl CPPP Portal to see various types of Services and BOQs https://eprocure.gov.in/eprocure/app Fin Min Manual: https://www.doe.gov.in/manuals/manual... Fin Min MTD for NC Services: https://doe.gov.in/divisions/model-te... Mastering Public Procurement – Free YouTube Channel    / @masteringpublicprocurement5577