Chapter-2 Procurement Process Management and Value Thresholds

This chapter describes the procurement process and various value cut offs for using different methods to be used at all levels. Understanding this chapter is necessary to properly carry out procurement activities under the Program.

2.1 Overall Procurement Process: Figure 2.1 shows the procurement process. Relevant section numbers are shown on the right hand side of each box.



2.2   Procurement Committee:

A procurement committee has to be constituted to compare and give advice and proper recommendation to the competent authority regarding the quality and economy price of goods to be procured. The procurement committee can comprise of at least five members, including a technical member . The Committee will be responsible for:

  •  Preparing a Procurement Plan.
  •  Approving what to buy, and when to buy?
  •  Finalize technical specifications and terms of references (often very simple) for goods/civil works and services respectively.
  •  Evaluation of bids
  •  Over sight and supervision of  the procurement

The composition of procurement committee at MSAMB/ HAATS/ FCSCs/ Demonstration Units/ PGs level may be as follows

PCU– At State PCU level the procurement committee will comprise of the (a) Project Director, (Chairperson) (b) Chief Finance Controller- Member (c) Concerned Technical Specialist/ Coordinator in the PCU ( i.e.  the related Specialist in MIS / M&E / Agri-Business/ Livestock / Agriculture /Marketing] - Member (d) A Chairperson of beneficiary institution or representative [1]. - Member, (e) Procurement Specialist- Member secretary. This committee will perform the procurement actions of the entire requirements of Goods, Works & Services under the PCUs domain. The representative of concerned Service Provider for APMCs will always be an invitee for procurement of APMC Markets only.

                With regard to procurements of PIUs (Agriculture /Animal Husbandry/ MSAMB/), the PCU will prior review and clear bid documents and bid evaluation reports for all goods & works and also the short lists, RFPs and technical & combined (technical