Office of the Dean (Planning and Development)Office of the Dean (Planning and Development)

NATIONAL INSTITUTE OF TECHNOLOGY NATIONAL INSTITUTE OF TECHNOLOGY TIRUCHIRAPPALLITIRUCHIRAPPALLI

REVISED PURCHASE PROCEDUREREVISED PURCHASE PROCEDURE(Illustrative brochure)(Illustrative brochure)

Plan/Non-plan FundPlan/Non-plan Fund

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Important Note

This document is prepared based on the minutes of 32nd BoG related to Revised Purchase norms.

This document presents a detailed explanation related only to the revised purchase procedure (reference cited above). To view the original document/ minutes of 32nd BoG, the following link in NITT Website may be used.

http://www.nitt.edu/home/righttoinfoact/purchase-norms-revised.pdf

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Contents

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S.No. Topic Slide No.

1 General instructions 4

2 General instructions (cost of EMD, tender documents, notification time etc)

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3 Constitution of Purchase committee and approving authority 6

4 Procedure for item(s) costing up to Rs. 15,000 – Direct Purchase 7

5 Purchase procedure for item(s) costing above Rs. 15,000 and up to Rs. 1,00,000/Occasion – Limited Quotations, single bid

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6 Purchase procedure for item(s) costing above Rs. 1,00,000 – Open Tender System

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7 Procedure for Purchase through Repeat Order/NITT Rate Contract/ DGS&D Rate Contract

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General Instructions

• For all purchases, the file reference number (allotted by Dean P&D office) should be mentioned.

• Set the specifications broad enough to encourage more than one bidder for competitive bidding.

• At each stage of purchase, proceed further after obtaining the purchase committee approval.

• Director’s Nominee: Any Dean other than Dean(P&D)- or any Professor who is not a member in the same committee may be co-opted as member. Director’s nominee will be from a department other than the one processing the purchase.

• EMD and Tender cost is not required for purchase through quotations upto Rs. 1 Lakh. However, minimum three quotations is required for processing the purchase.

• Pre-bid meeting with suppliers may be scheduled on or after one week from the date of tender advertisement and before opening of the technical bid. Record the proceedings. Amendments (if any) need to be published in the NITT website immediately after the pre-bid meeting. • For items costing above Rs. 1 Lakh, pre-bid meeting is optional. • For item(s) costing above Rs. 25 Lakhs, Pre-bid meeting is mandatory.

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General Instructions

Particulars EMD

For works estimated to cost upto Rs. 10 Crores 2% (Two percent) of the estimated cost

For works estimated to cost more than Rs. 10 Crores

Rs.20 Lakhs + 1% (one percent) of the estimated cost in excess of Rs. 10 Crores.

Earnest Money Deposit (EMD):

Tender Cost:Particulars Tender Cost (Rs.)

Works costing upto Rs.3 Lakhs NIL

Works costing more than Rs.3 Lakhs and upto Rs.50 Lakhs 150

Works costing more than Rs.50 Lakhs and upto Rs.2 Crores 500

Works costing above Rs.2 Crores 1000

Time-Span for publishing tenders: (Time-Span between the date of call-for- tenders and the date of opening-of-tenders) :

Particulars Days

Works costing upto Rs.10 Lakhs 10

Works costing more than Rs.10 Lakhs and upto Rs.50 Lakhs 14

Works costing more than Rs.50 Lakhs 21

Works costing more than Rs.50 Lakhs and bids are expected from foreign origin

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Value of Purchase Specification /Purchase committee CFA* for approving Purchase committee

Up to Rs. 15,000/ sanction No Committee Direct purchase by HoD

Above Rs. 15,000 and up to Rs. 1,00,000

1. HoD - Chairman2. Initiating Faculty-Convener3,4. Two NITT Faculty- Members5. DR. Accounts – Member

Dean (P&D)

Above Rs. 1,00,000 and up to Rs. 5,00,000

1. Dean P&D - Chairperson2. HoD or nominee - Convener3. Initiating Faculty-Member4,5. Two NITT Faculty- Members6. DR. Accounts – Member

Deans committee

Above Rs. 5,00,000 1. Dean (P&D)- Chairperson 2. Director’s nominee -Member3. HoD - Convener4. Initiating Faculty-Member5,6. Two NITT Faculty -Members 7,8. Two experts from other Govt. Institutes/University/Industry/R&D Labs9. Registrar-Member10. DR. Accounts – Member

Director

Constitution of Purchase committee

*CFA – Competent Finance Authority 6

Purchase procedure for item(s) costing upto Rs. 15,000 – Direct Purchase

Get the approval from HoDClick here for format

Obtain File No. from Office of the Dean (P&D)

Proceed with the Purchase

Submit the following documents in the Bill Section for payment

Original Cash Bill/Invoice with Dept. stock entry

note

Certificate

Click here for format

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Equipment/Item has a File No

Get the approval from HoD

Click here for format

Obtain Dean (P&D) approval for the purchase committee Click here for format

Minute the recommendations of the Purchase committeeClick here for format

Purchase procedure for item(s) costing above Rs. 15,000 and up to Rs. 1,00,000/Occasion – Limited Quotations, single bid

Else, extend the due date after approval by HoD

Prepare comparative statement

Click here for format

Conduct Purchase committee meeting & record the

recommendationsClick here for format

Send the enquiries to the suppliers approved by the purchase committee

Click here for format

Open the bids on the scheduled date if the number of suppliers responded is >= 3

Prepare Draft PO and POClick below for format

Draft PO PO 8

Obtain Financial SanctionClick here for format

If the number of suppliers responded is still < 3, provide a certificate (click for format) and

proceed

Equipment/Item has a

File No

Install the equipment and process the payment

with the following documents

Follow-up the payment and obtain an

acknowledgment of payment from supplier

End

Purchase procedure for item(s) costing above Rs. 15,000 and upto Rs. 1,00,000/Occasion – Limited Quotations (contd..)

Original Cash Bill/Invoice with

Dept. stock entry note

ECS-Mandate Form

Click for format

Pre-stamped receipt

Click for format

Performance Security (Bank

guarantee) Click for format

Send the PO to the successful supplier with

Customs/Excise duty exemption certificate

Click here for exemption certificate

(Print and get the attestation from

Registrar)

Certificate

Click for format

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Obtain Master Sanction order

Obtain CFA approval for purchase committee Click below for format

1-5 Lakh 5 Lakh & above

Conduct purchase committee meeting and minute the recommendations

Click below for format1-5 Lakh 5 Lakh and above

Two bid Tender

Click for format

Verification by DR Accounts

Purchase procedure for item(s) costing above Rs. 1,00,000 – Open Tender System

Newspaper/Web advertisement

1-5 Lakhs(NITT Web

Ad.)

Submit Soft-copy of the tender document for NITT

Web Ad.

NITT Web Ad.: One day before the date of Newspaper Ad.

Start

Prepare Tender Document

Single bid Tender (only for Proprietary

items) Contact DR

(Accounts) for format

Proprietary Certificate

Certificate-1Certificate-2

5 Lakhs and above(NITT Web Ad.+ Ad. in 3 News papers (1

English Daily at national level+2

Local Dailies )Click here for News paper Ad. format

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Conduct Pre-bid meeting (Read Slide-4 for details)

Open Technical Bid*Do not open the price bid

Prepare technical comparative statement

Click below for format1-5 Lakh 5 Lakh & above

Minute the Purchase committee Recommendations

Click below for format 1-5 Lakh 5 Lakh & above

Prepare price comparison statement Click below for format

1-5 Lakh 5 Lakh & above

Minute the Purchase committee Recommendations

Click below for format 1-5 Lakh 5 Lakh and above

Proceed further only if the number of supplier(s) responded is >= 3 , else, Extend the due date after

approval by Dean (P&D)

Intimate technically qualified supplier over post/email/fax the date of opening of price bid and

return EMD of technically rejected supplier(s)

Open Price bid*Do not open the price bid of

technically non-qualified supplier(s)

Purchase procedure for item(s) costing above Rs. 1,00,000 – Open Tender System (contd..)

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Obtain Financial SanctionClick below for format

1-3 Lakhs 3 Lakhs & above

If the number of suppliers responded is still < 3, provide a certificate (click for format) and proceed

Submit tender cost (DD) @ Bill section

Install the equipment and process the payment with the following

documents

Follow-up the payment and obtain an acknowledgment of payment

from supplier

End

Original Cash Bill/Invoice with Dept. stock entry

note

ECS-Mandate Form

Click for format

Pre-stamped receipt

Click for format

Performance Security (Bank

guarantee) Click for format

Send the PO to the successful supplier with Customs/Excise duty exemption

certificate and get the order acceptance

Click here for exemption certificate

(Print and get the attestation from

Registrar)

Purchase procedure for item(s) costing above Rs. 1,00,000 – Open Tender System (contd..)

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Prepare Draft PO and POClick below for format

Draft PO (1-3 Lakh 3-5 Lakh 5 Lakh & above) PO

Return the EMD of L1 after receiving

performance security

Return the EMD of unsuccessful

bidder(s)

Get the approval from CFA according to the value of

purchase

Obtain approval from CFA for the purchase committee

Minute the Purchase committee Recommendations approving the purchase through Repeat Order/NITT

Rate Contract/DGS&D Rate Contract (Use the format according to the value of purchase)

Prepare Draft PO and PO (According to the value of purchase)

Procedure for Purchase through Repeat Order/NITT Rate Contract/ DGS&D Rate Contract

Certificate for Repeat OrderClick below for format

Certificate-1 Certificate-2

The remaining procedure is similar and according to the value of purchase

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Obtain Financial Sanction (Use the

format according to the value of purchase)

For any clarifications/suggestions, please contact me at durai@nitt.edu

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