Chapter-2 Procurement Process Management and Value Thresholds

  1. be understood and implemented by local staff and the community;

    ·         Be sufficiently transparent to permit real competition among suppliers and to facilitate control in the selection of contractors and use of funds;

    ·         Use simple, standardized documentation; and

    ·         Balance risk versus control/management with efficiency considerations.

    The procurement procedures, based on World Bank guidance note for management of procurement responsibilities in community driven development projects (Version: December 2009), that may be followed by Markets, FCSCs, Demonstration Units under AHD and PGs under SR Development program are:

    Table 2.3

    Expenditure Category


    Value in (threshold**) per contract

    Procurement Method

    Contracts Subject to Prior Review / Post Review**

    Goods, Equipment and raw Materials

    US$ 20,000 (INR 1,000,000)

    Shopping /

    DGS&D Rate Contract Price

    Based on Unit Cost Database [4]

    Post Review

    Civil Works

    US$ 50,000 (INR 2,500,000)


    Force Account [5]

    Post Review


    US$ 50,001 to 100,000 (INR 2,500,000 to 5,000,000)

    Local Bidding [6]

    Post Review

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

    Considering the large extent of community based procurement envisaged in the project, a Third party Asset Verification and Community Procurement Review process of at least 10% of the total works and other assets created will be carried out annually.

    Table 2.4 SERVICES by PCUs and PIUs

    Expenditure Category

    Value (threshold**) per contract

    Procurement Method

    Contracts Subject to Prior Review / Post Review**



    Service Provider Contracts, Third party Supervision services, Research and evaluation contracts, professional services, training, workshops & fellowships etc.


    By PCU and PIUs

    (a)   More than US$ 200,000 equivalent  [>INR 10.0 million]

    Quality and Cost Based Selection (QCBS   –  International Shortlist, if the value is above US$500,000)/


    Single Source Selection (SSS) [7]

    Prior Review by the bank. first two contracts regardless of value and   all subsequent contracts valued above US$