Chapter-2 Procurement Process Management and Value Thresholds

  1. INR 2,500,000.00)

    Shopping (at least three quotations from qualified  contractors)

    Post review only


    ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts determines the applicable threshold amount

    Table 2.2    GOODS

    Expenditure Category


    Value (threshold **) per contract

    Procurement Method

    Contracts Subject to Prior Review / Post Review**

    Goods/ Equipment/ Machines by PCU and PIUs

    Contracts estimated to cost more than US$ 300,000 (>INR 15.0 million)


    Competitive Bidding (ICB)

    Prior review by the Bank

    Goods/ Equipment/ Machines by PCU and PIUs

    Contracts estimated to cost more than US$ 50,000 and <= US$ 300,000 equivalent (>INR 2.5 million but < INR 15.0 million)


    National Competitive

    Bidding (NCB)


    First two contracts under NCB regardless of value and all subsequent contracts costing more than US$ 300,000 equivalent each will be prior reviewed by the Bank All other contracts by post review

    Equipment/ Materials/ Tools by PCU and PIUs


    Contracts estimated to cost  less than or equal to US$ 50,000 equivalent    (<= INR 2.5 million)

    Shopping (includes issue of supply orders under DGS&D rate contracts. State Rate Contracts are not to be considered as alternative to DGS &D Rate Contracts. However, state Rate Contracts can be considered as one of the 3 quotations for shopping procedure)

    Direct Contracting, if the conditions of direct contracting are met

    Post Review only


    Community Procurement

    “Community Participation in Procurement.” This provision of the Bank’s Procurement Guidelines 3has been specifically designed to address procurement in Community beneficiary involved projects. It stipulates that procedures, specifications and contract packaging shall be “suitably adapted” to reflect the conditions and capacity of the community, provided they are “efficient and acceptable to the Bank.” This provision allows flexibility in defining acceptable procedures at the community level. As a general rule, procurement should be designed to:

    ·         Be simple enough as to