120-162 CHAPTER VI STORES Introductory
120.(1) The term “stores” means all articles and materials (other than cash and documents) which come into the possession of a Government servant for use in the public Service. This term does not, however, include items like fuel, charcoal, dietary products, etc.
For fulfilling the duties and functions of the Various Departments of the Government, “Stores” have often to be purchased. This chapter contains the general rules applicable to all Departments regarding purchase of stores required for use in the Public Service. In regard to particular classes of articles such as books and periodicals, stationery and printing stores, clothing and liveries, etc., these rules will be supplemented by the instructions in the book of Financial Powers issued by the Finance Department.
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Authorities Competent to Purchase Stores
- Expenditure on stores is included under contingent expenditure (except where it is treated otherwise, e.g., stores relating to works expenditure) and is therefore subject generally to the rules contained in Chapter V which govern such expenditure.
A Government servant who is competent to incur contingent expenditure may purchase direct from firms in India or through the agency of the Central Purchase Organisation, or direct from manufacturers abroad, such stores as he requires for the use of his department or his office subject to Stores Purchase Rules and also subject to the usual restriction regarding the existence of budget appropriation. Such purchases made in India are also subject to any money limits and other conditions prescribed generally or with regard to specific articles or classes of articles (See Book of Financial Powers).
Forecast of Requirements
- A Government servant who has to purchase stores for the public service should estimate his requirements for the year so far as they can be foreseen.He should preparean annual indent of stores in Form 13 in accordance with the instructions contained in Article 124.
What is meant by “indent” with regard to stores?
The indent should show the approximate cost of articles to be purchased including incidental expenses and should be got sanctioned by competent authority. As far as possible a purchasing officer should lay in sufficient stock during the cheapest season. When necessary he should apply for advice as to the best time for making purchases and assistance in obtaining tenders to Government servants of other departments who are in close touch with the market for the articles required and know the usual course of their price. For example, it is usually advantageous to buy food grains required for rations just after the harvest and the Revenue Department is likely to be able to give useful advice and assistance in regard to such purchases. Articles which are likely to depreciate
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or deteriorate during storage should not, however, be bought long in advance of requirements. It should also be remembered that the purchase of any article in advance of requirements involves the locking up of Government money and is not therefore desirable unless it is reasonably likely to prove advantageous in regard to price.
Preparation of Indent
(Article.123)
123. At the end of each financial year, each department should realistically assess its requirements of stores and equipments required during the next financial year and prepare a list of the articles required. The list may be prepared on the basis of the consumption during the previous 3 or 5 years and with reference to factors, if any, which justify an increase or decrease compared with the average. The lists for each year should also be based on the budget estimate for the next year and should be prepared duly allowing for the carrying over of stock for at least one quarter of the succeeding year. As soon as the list is prepared the required sanction of Government or other competent authority should be obtained for the purchase. Particular care should be taken to ensure that orders are placed only for quantities which will be utilised within a reasonable time.
Administrative Sanction
124.(i) It is the duty of each purchasing officer to see that funds are available for meeting the expenditure in respect of purchase of stores and administrative sanction is secured before proceeding to make purchases.
🆀It is duty of each purchasing officer to see that funds are available for meeting the expenditure in respect of purchase of stores and __________ is secured before proceeding to make purchase.
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(iii) Heads of Departments are themselves competent to accord administrative sanction for recurring supplies required for the normal running of their Departments for which funds are provided in the Budget. Heads of Departments are empowered to accord administrative sanction for purchases of other items up to `₹20,00,000 Group 1. Head of the Departments and 10,00,000 for other Head of Departments. But this shall not enable them to purchase luxury articles like refrigerators, radios, photographic equipments, microscopes, generators, audio-visual equipments, motor cycles and scooters.
Purchase Sanction
The factual accuracy of the materials placed before the Committee and the observance of the Rules in undertaking the various steps before, bringing the proposals before the Committee will be the sole responsibility of the Head of the Department.
Purchase Sanction
The factual accuracy of the materials placed before the Committee and the observance of the Rules in undertaking the various steps before, bringing the proposals before the Committee will be the sole responsibility of the Head of the Department.
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Tender System
- 126. (a)A Purchasing Officer should obtain stores by calling for tenders in all casesexcept the following:—
(i) Purchase of uniform for nursing sisters in all the hospitals in the State.
For purchase of books and periodicals for any amount above ₹15,000* simple quotations from leading book houses and book dealers may be called for and orders placed on the basis of those competitive quotations. Written undertaking should be obtained from the selected firms to the effect that they shall supply the books and periodicals ordered; in time and in satisfactory condition.
(iii) Petty purchases of less than ₹15,000* at a time.
Note:—
The Director of State Water Transport Department is authorised to arrange petty purchase of stores up to ₹ 15,000* at a time.
(iv) Purchase from Government sources subject to the conditions laid down in Article 127.
(v) Special purchase in which any other procedure is approved by Government [See also (b) and Article 142 below].
(vi) Controlled stores from controlled stocks.
(vii) Purchases of articles covered by rate or running contracts settled by the Director-General of Supplies and Disposals, New Delhi or the Stores Purchase Department, Trivandrum by operating such contracts.
🆀A purchasing officer should call for tenders for purchase of
(A) Uniform for nursing sisters in the Government hospitals
(B) Purchase of books and periodicals in all departments involving less than 1000 at a time.
(C) Purchase of electrical items for Government use
(D) Controlled stores from controlled stocks
Correct Answer: (C) Purchase of electrical items for Government use
🆀How should a purchasing officer obtain stores ?
(A) By-direct purchase from wholesale dealers
(B) By calling for tenders
(C) From a shop fixed by Government
(D) Direct from retail dealers
Correct Answer: (B) By calling for tenders
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Quotations may be invited if the estimated value of the stores is between ₹15,000 to ₹ 1,00,000, Copies of Quotation Notice regarding the general conditions of the supply, specification of article, etc., should be supplied to all the firms to whom the enquiries were/are sent. A specimen form of Quotation Notice is given in Annexure I. It is not obligatory to publish Quotation Notices in the Gazette. Short Quotation Notices as in Annexure II may, however, be published in the newspapers if considered necessary.
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(c) In the case of purchases of heavy machinery, imported goods and other stores which cannot be obtained without wide publicity at All India level, the tender notices may be published in addition to their publication in the Government Gazette, in the Indian Trade Journal, published weekly from Calcutta by the Director-General of Intelligence and Statistics.
(d) In addition to the publication, the short tender notices should be sent to all registered firms in the line and also to other reputed dealers.
(e) For the purpose of notifying dealers and contractors a list of approved firms, both Indian and Foreign of known reliability should be maintained in the office of every purchasing officer. The list should be prepared commodity-war on the basis of the list of registered firms maintained by Government in the Stores Purchase Department. The list will be examined and revised periodically. Applications from firms received by the several Departments for inclusion in the approved lists should be forwarded by them to the Stores Purchase Department. There is no objection to sending enquiries to firms outside the approved list.
(f) There are items for which there are no lists of registered firms in the Stores Purchase Department, e.g., bottles, earthenware jars, Ayurveda medicines, food materials, etc. In such cases when tenders are invited the Purchasing Departments should see that notices are sent direct to all known suppliers, particularly to reputed manufacturers and stockists and any others who might ask to be intimated especially when such notices are published only in the Gazette and not in newspapers.
(g) The Heads of Departments and Offices may make arrangements with the Superintendent, Government Presses to get printed sufficient number of spare copies of Tender Forms as in Annexure VI containing details of specifications, conditions of supply etc., to be supplied to the indenting purchasers. To facilitate matters, particulars regarding the quality are quite essential. The Heads of Departments will incorporate specifications
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regarding quality also in addition to quantity wherever possible in the tender forms and short tender/quotation notices. The Superintendent of Government Presses will print and supply the spare copies of the tender forms to the Officers concerned within 8 to 10 days of requisition from the Heads of Departments.
II. Limited Tender
The limited tender system may be adopted whenever the estimated value of the order to be given is between ₹1,00,000/- lakh to less than ₹10,00,000/-.
III. Single Tender
(a) The single tender system may be adopted:–
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Purchase from Government Sources
Prior to such negotiation, the purchasing authority should ascertain the normal market prices by enquiry from as large a number of suppliers as possible. If the price required by the State Government Departmental Unit/State Public Sector Industry/Institution is over 25% above the normal market prices, the price is to be reviewed and decided by Government.
(ii) In the case of products of State Government Departmental Units/State Public Sector Industries and Institutions which have been in production for more than five years, tenders should be invited as laid down in this Code and purchase should be finalised giving the concerned State Government Departmental Unit/State Public Sector Industry/ Institution, a price preference of 10 per cent as against firms manufacturing outside the State and 5 per cent as against firms manufacturing within the State.
(iii) In giving the price preference as mentioned above, the prices for comparison, should be taken exclusive of sales-tax
(b)(i) A list of Government Institutions/State Public Sector Industries/State Government Department Units which manufacture and supply stores is given in Annexure III.
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(ii) In respect of purchases to be made from institutions, etc. listed in Annexure III all purchasing officers should see that only those items are purchased which are normally manufactured by them. In the case of Small Scale Industrial Units under the Kerala State Small Industries Corporation, in order to show that a particular item is normally manufactured by a particular unit, such unit should produce a certificate to that effect from the Managing Director, Kerala State Small Industries Corporation, Trivandrum.
(iii) As regards direct purchase without calling for tenders or purchases on price preference from Public Sector Units of the Government of India the orders issued by the Government from time to time in respect of Individual units will be followed.
Purchase of Furniture
(Article. 128)
- (i) Heads of Departments and Officers should see that thefurniture required for the offices and the institutions under their control is made of superior wood only, such as teak, jackwood and blackwood.
(ii) “Officers authorised to make local purchase of furniture may obtain Administrative and purchase sanction of Government for the purchase of furniture even from Government Sources.”.
Provided that purchase sanction for Government will not be necessary for the local purchase of furniture up to `₹20 lakh by the Heads of Group I Departments and up to ₹10 lakh by heads of other Departments. in Group II and III.
The Head of the Departments are also authorized to purchase stationary up to 1 lakh.
PURCHASE OF FURNITURE
GROUP.I ► Head of the Department up to ₹2,00,000
GROUP.II ► Head of the Department up to ₹1,00,000
GROUP.III ►Head of the Department up to ₹1,00,000
( G.O. (P) No. 224/2000/Fin. Dated 27-1-2000).
(iii) Competitive quotations /tenders should be invited from the firms approved by the Stores Purchase Department in respect of the purchase of quality furniture and similar items required for use in the Secretariat, Tourism
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Department, Traveller’s Bungalows and Rest Houses. After receipt of tenders/quotations in deciding on placement of supply orders the P.W.D. Engineering Workshop, Chackai,Thiruvananthapuram and the Government Wood Workshop, Kozhikkode should be given price preference as per Article128 subject only to consideration of quality.
Ascertainment of Surplus Stores
മിച്ച സ്റ്റോറുകളുടെ കണ്ടെത്തൽ
(Article. 129)
- 129. Before orders are placed with private firms, the surplus stock or articles, if any, available with other Departments of the Government should first be utilised, irrespective of the cost at which it is available. The following instructions should be observed in regard to the utilisation of the surplus stores in the Departments of the Government:–
(a) Each Head of a Department should circulate from time to time lists of all usable stores found surplus to the requirements of his Department to other Heads of Departments as soon as the surpluses are noticed.
(b) Every Head of Department should see from the list received by him under instruction (a) above whether he can utilise the stores available with the other Departments before he places, or allowed his subordinates to place orders for the purchase of such stores in the open market, or submit proposals to the Government for such purchases. Even in cases where no list has been received by him covering the particular articles required by him, he should make enquiries of the Heads of Departments with whom such stores may be available ordinarily.
(c) When proposals are submitted to Government or any authority authorised by Government for according sanction to the purchase of any stores it should invariably be stated whether action was taken with reference to instruction (b) above and if so, with what result.
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Form of Tenders
- 130. Every Officer who proposes to purchase materials by the open tender system should obtain tenders in a prescribed form issued by him or on commercial letter papers of the tendering firms. For all purchases involving₹1,00,000 or more, tender forms should ordinarily be prescribed and issued by the purchasing officer at prices according to the scale approved by Government.
Note:–
The United Kingdom Trades Commissioner in India should be supplied with one copy each of the tender forms as are required by him, free of cost by all the purchasing departments who invite tenders for the purchase of stores.
The priced tender forms should contain the general conditions of tender and a list of materials to be supplied and should be got printed in book form. The general conditions of tender are contained in Annexure VI.
The following scales of prices (exclusive of Sales-tax) are prescribed by Government for tender forms to be issued by Government Departments.
(a) Ordinary tenders involving supply of stores.
Estimated cost of materials for which Cost of tender forms tenders are invited |
Cost of tender forms | |
Original copy each | Duplicate copy each | |
Up to 10,00,000 | 0.2% of the cost of tender rounded to the nearest multiple of 100 subject to a minimum of 400 and maximum 1500+VAT as possible |
50% of the cost of the original copy, upper rounded to the nearest multiple of 100+VAT as applicable |
Above 10,00,000 | 0.15 % of the cost of tender rounded to the nearest multiple of 100 subject to a maximum of 25000 +VAT as possible |
50% of the cost of the original copy, upper rounded to the nearest multiple of 100+VAT as applicable |
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(b) Special tenders withdrawing etc., and involving erection of plant
and machinery. O
Original copy each | Duplicate copy each | |
Up to 10,00,000 | 0.25 % of the cost of tender rounded to the nearest multiple 100+VAT as possible |
50% of the cost of the original copy, upper rounded to the nearest multiple of 100+VAT as applicable |
Above 10,00,000 | 0.20 % of the cost of tender rounded to the nearest multiple of 100 +VAT as possible |
50% of the cost of the original copy, rounded to the nearest multiple of 100+VAT as applicable |
` `
General conditions of contract for Plant, Machinery and Manufactured Equipments usually supplied with special tenders: ` 200 per extra copy.
(c) In the case of tenders for supply and erection involving more than ` 50 lakhs the cost is to be fixed at ` 100 for original copy and ` 10 for duplicate copies. Duplicate sets of drawings alone in such cases are to be separately charged at ` 10 per set.
(d) Ordinarily duplicate copies of tender forms should be issued only to firms or individuals who have purchased the original copy. But in the case of special tenders duplicate can be issued to applicants for reference even if they have not purchased the original copy. But in such cases care should be taken to see that the tenders are submitted only in original copies.
(e) The cost of tender forms may be accepted in cash or by money order only. Postal orders, postal stamps, bank drafts or bank cheques should not be accepted. No forms should be sent by V.P.P. or in advance.
🆀The cost of tender forms can be accepted in the form of
A:-A Bank Draft
B:-Cash or money order only
C:-Cash only
D:-Bank cheques
Correct Answer:- Option-B:-Cash or money order only
In certain special cases of purchases involving less than ` 10,000 priced tender forms may be preferred depending upon the nature of the stores, e.g., charcoal, firewood etc.
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(a) In certain other cases even though the amount involved is more than ` 10,000, priced tender forms may not be desirable, e.g., fuel oil, motor vehicles, etc.
(b) In all cases of rates/running contracts priced tender forms are essential irrespective of the amount involved unless otherwise decided by Government (See also Article 141).
(c) Free tenders (or quotations) may be invited in all cases of limited tender or single tender system. In such cases, the tendering firms can submit their tenders in their own commercial letter papers.
Invitation of Tenders
(Article.131)
- 131. Whenever tenders are invited, the procedure in the following rules should be followed. This procedure will apply to all Departments except those for which special rules have been laid down in their Codes or Manuals.
(a) Before inviting tenders, every officer should estimate his requirements for the year as far as he can foresee and regulate the time of his purchases according to the state of market and stock position of stores of his Department (vide Article 123). A phased programme may be drawn up for inviting the tenders so that there is no rush of tenders at any time and priority is given to articles which are in urgent need.
(i) Tenders can be invited even during the previous financial year for normal and recurring supplies likely to be required by various Departments in the succeeding year. But actual financial commitment should be entered into only after the Budget is passed by the Legislature.
(ii) In the case of requirement in bulk or costly machinery for which competitive quotations can be obtained for forward delivery, tenders should be invited well in advance of the requirements so that stock purchases at prohibitive prices are avoided.
(iii) Rush purchases towards the end of the financial year should be avoided. Expenditure which might otherwise be postponed should not be incurred in the last month of the financial year solely with a
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view to prevent lapses of the budget grants. Such rush purchases have an undesirable effect in that the strict observance of the rules regarding invitation of the tenders, proper scrutiny of offers etc., are rendered impossible at such high pressure. Hasty purchases cannot but lead to waste, confusion and delay.
(b) The articles should properly be classified under different trade groups according to the approved classification. (See Annexure IV to this Chapter). Tenders should then be invited separately for each group.
(i) The tenders should not be made unwieldy by including too many items of different kinds of materials in the same tender. Where purchases are large one tender notice should normally contain only one kind or class of articles.
(ii) Requirements should be correctly estimated. After inviting tenders the quantity should not be varied materially. It is wrong economy to purchase bulk quantities at retail prices.
(iii) Indents of the different institutions or sections under the same Head of Department should be classified and bulked into a single list. They need not be shown separately in the tender list or schedule.
Example:–
Laboratory glassware is required for the Physics, Chemistry, Botany and Zoology Laboratories of a College. Each of these Departments should not invite tenders separately, not should the Principal invite tenders separately for each Department. On the other hand the requirements of all the four Departments should be properly classified and bulked. If, for example, each of the four Departments require 2 beakers with spout 500 c.c. the quantity should be mentioned as 8 numbers and this should occur only at one place in the tender notice.
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(iv) The names of stores should be arranged in a clear intelligible manner. Alphabetical arrangement is desirable. Each item should be given correct and adequate specifications. Mere reference to a catalogue numbers and mention of patent/brand names should be avoided. For example, “Frigidaire” should not be mentioned where the requirement is a refrigerator.
(c) The requirements of the same or similar materials should be consolidated and tenders invited in order to secure the advantage of competitive prices for bulk supply. Tenders should not be invited by the same Department for the same class of materials several times during the same year. Apart from losing the advantage of bulk purchases, piecemeal purchases result in avoidable work and delay.
(d) Tender specifications should be carefully and correctly drawn up so that there is no ambiguity about the correct type, size, packing etc., of materials required. There should be no room for changes in specifications after inviting tenders.
(e) (i) Intending Departments should endeavour to adopt the Indian Standard Specifications wherever available, and where such specifications have not been laid down, should consistent with the requirements of safety, security and end use of the stores, permit relaxation of standards having regard to technical limitations in indigenous production.
(ii) In respect of articles purchased by Government, other things being equal, preference will be given to goods bearing Indian Standards Institution certification mark.
(iii) Copies of tender notices issued by the Purchasing Officers will be sent to the Indian Standards Institution for information.
🆀Copies of tender notices issued by purchasing officers will be sent to __________ for information.
A:-Economics and statistics dept.
B:-Indian standard institution
C:-Central statistical organisation
D:-Accountant General
Correct Answer:- Option-B
Copies of tender notices issued by Purchasing Officers will be sent to ……………… for information.
(A) Economics and Statistics Dept.
(B) Indian Standard Institution
(C) Central Statistical Organisation
(D) Accountant General
(f) (i) Comprehensive specifications of plant, machinery and specialised equipment should be given with the terms “or similar” added wherever possible.
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(ii) Where there is lack of experience of any particular type of equipment and full specifications cannot be furnished, preliminary enquiries should be made in the first instance and the offers got examined by the technical experts who should then draw up comprehensive specifications for inviting the formal tender.
(iii) Tenderers should be allowed to quote for all the items included in a tender or a part thereof. They should also be allowed to make suitable alternative offers.
(g) A Purchasing Officer who invites tenders for the supply of stores may exercise full discretion regarding the place of delivery to be specified in the invitation of tender. The conditions should as far as possible be such as to give all tenderers equal opportunities of tendering at their lowest rates. He may stipulate for delivery c.i.f. or f.o.r. at an Indian Port or f.o.r. at the place of despatch in India or f.o.r. destination or for free delivery at the receiving stores/office. When tenders are invited for the supply of plant and equipments and the successful tenderers is to erect the plant at site, the appropriate conditions in regard to delivery at site should be included in the invitation of tender or in the general specifications.
(h) Save as provided in Article 148(b) all articles required for use in the public service shall be purchased on the condition that delivery shall be made in India for payments in Rupees in India. Except in special cases, full payment should not be made for any stores against shipping or railway documents, and payment should be completed only after the Receiving Officer has taken delivery of stores and found them to be satisfactory in every respect.
(i) In all cases of invitation of tenders, care should be taken to see that sufficient time is allowed to the tenderers to submit their tenders. In fixing the date for the receipt of tenders , the purchasing Officer should take into account the time required for publicity, for the receipt of the tender forms by the tenderers and the preparation and despatch of the tenders. He may exercise his discretion about
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the last date for the receipt of tenders keeping in mind the nature and supply position of the articles required to be purchased.
(j) The following minima are suggested:¬
(i) For ordinary stores which can be procured from the Indian market—One month.
(ii) For machinery and plant which have necessarily to be imported—Two months
(iii) For heavy equipments involving foreign manufacture of plant and machinery, their import and erection—Three months.
🆀The minimum time allow tenderer to submit tender for ordinary stores which can be procured within the country is
A:-3 months
B:-21 days
C:-one month
D:-15 days
Correct Answer:- Option-C
(k) The invitation should also specify a period of firmness during which the tenderers are to keep their rates firm. The time fixed for firmness of offers should be enough to cover the normal delay expected in placing supply orders after going through all the formalities. It is necessary that regard should be had to the fluctuating nature of the markets in fixing these periods. Long periods of firmness such as 6 or 8 months should be avoided.
The following periods of firmness may generally be prescribed:—
(i) All ordinary items of stores—Two months.
(ii) Important tenders involving manufacture, supply and erection such as heavy electrical plants, machinery steel structures etc. —Three months.
(iii) For stores which are in short supply in the country and the prices of which are subject to violent fluctuations, a maximum period of one month or even less may be fixed. A week or two is better.
(iv) It is important that in all cases decision regarding the selection of offers are taken promptly and acceptances communicated to, or supply orders placed with the selected firms before the period of firmness expires.
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Note:—No earnest money or security deposit is necessary in respect of supplies from Government Institutions/State Public Sector Industries/ State Government Departmental units.
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Receipt and Opening of Tenders
(b) The tenders should be opened (in the presence of any of the tenderers who may be present) by the Head of Office or by other Responsible Officer but not by subordinates. The tenders should be taken out from lock and key by the Officer opening the tender at the appointed hour only. They should be opened in the same order in which they have been received. Each tender/ quotation opened should be serially numbered and initialled by the Officer with date and time. The names of the representatives of tenderers present should be entered in the appropriate column of the Restgister referred to above.
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(c) The envelopes in which tenders are received should be prescribed along with the tenders for the purpose of record. The file of tenders and the envelopes with the orders of the purchasing officer or of Government accepting one or more tenders should be carefully preserved for five years at the least.
Entertainment of Tenders
134.(a) Tenders which are in the prescribed form (when forms are prescribed) and are accompanied by the requisite earnest money (if earnest money is prescribed) shall be included for consideration provided they have been received before the time prescribed for their receipt. Tenders shall be excluded in the following cases:—
(i) When the tenders are not in the prescribed form (where forms are prescribed).
(ii) When the tender is not accompanied by requisite earnest money (where earnest money is prescribed).
(iii) When the tender is not signed by the tenderer.
(iv) When the tender is from a black-listed firm or a banned firm.
(v) When the tender is received late.
(1) On no account tenders received after the time fixed for the opening of the tenders shall be considered.
(2) Tenders received by post after the date and time fixed for their receipt, but before the time fixed for the opening of the tenders shall also be considered, provided the officer concerned is satisfied that the delay occurred in postal transit.
Telegraphic tenders, if received in time, may be included for consideration, provided they are followed by confirmation and detailed tender with requisite
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earnest money, etc., within two days of the opening and also provided that such detailed tenders are posted before the opening date. No tender may be rejected for quoting for a part only, unless it is otherwise demanded in the tender notice.
Acceptance of Tenders
(Article.135)
135.(1) (i) In selecting the tender/tenders to be accepted the financial status and previous performance, if any, of the tenderers should be taken into consideration in addition to all other relevant factors.
Note:— When a tender which appears to be satisfactory is received from an unknown firm, steps should be taken before any order is placed to ascertain whether the firm is capable of executing the contract in a proper manner. If the result of enquiry proves satisfactory the order or a portion of it may be placed with the firm. If any firm is to be ignored on grounds of unsatisfactory, performance in respect of a previous contract, the decision should be taken by Government.
(ii) The various tenders should be compared in respect of price, quality, terms of delivery, terms of payment, etc., other conditions being equal the lowest tender should be accepted; and in cases where the lowest tender is not accepted the reasons therefor should be recorded [see also item (v) below].
(iii) When there are two or more offers for an article at the same rate and governed by similar conditions, the contract may be divided equally among the tenderers provided they are all well-known. Otherwise, the previous contractor whose performance was satisfactory should be preferred.
(iv) In selecting offers the cheapness, etc., of each individual item should be taken into account.
(v) In accepting tenders as above, producers and manufacturers in Kerala should be given preference. Government Purchase Policy generally permitsa price preference up to 15 per cent or even upto 25 percent or even higher
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in special cases, for indigenous products over imported stores.
The following price preference may be allowed for products of private industries within the State over the products made outside the State:-
(a) Fifteen per cent for industries, in which Government have taken shares.
(b) Ten per cent for other industries.
(c) Fifteen per cent of Industries of Charitable Institution registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act XII of 1955, within the district of their location.
Note:— These price preferences are subject to a ceiling of 25 per cent over imported goods. As far as possible purchases will be made locally unless the prices are substantially higher and the quality unsatisfactory. The choice will, however, be subject to the price preference limits indicated above.
(vi)When the conditions regarding quality, price, terms of delivery, terms of payment, etc., are equal, preference in making purchases should be given in the following order:-
Firstly:– to articles which are produced in Kerala;
Secondly:– to articles which are produced in India in the form of raw materials or are manufactured in India from materials produced in India;
Thirdly:– to articles wholly or partially manufactured in India from imported materials;
Fourthly:–to articles of foreign manufacture held in stock in India;
Fifthly:– to articles manufactured abroad, which need to be specially imported.
Note:— With the view to applying the principles of preference given above, a purchasing officer who invites tenders for supplying stores
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should instruct the tenderers to furnish information as to the country of origin in the case of raw material, and as to both the country of manufacture and the country of origin of the materials used for a manufactured article.
(vii) As far as possible firm price offers should be preferred to offers providing for variation. Price variation conditions need be accepted only in very special cases and in unavoidable circumstances. In the case of articles which are usually subject to price variation the standard price variation clause given to Annexure VII should be included in the tender notice itself.
(2) The acceptance or rejection of a tender is a matter entirely within the discretion of the officer responsible for the purchase of the material, but a superior authority or the Accountant-General may require him to justify the manner in which he has used his discretion and give his reasons for rejecting any tender. No tenderer has any right to be told the reasons for rejecting his tender, and reasons for rejection should not be communicated to any tenderer.
136 No Government servant shall deal with a tender in which he or any of his relations has any pecuniary or other interest. If any such cases comes before him in the course of his official duties, he should refrain from dealing with the case and should submit the case to the next higher authority for passing orders, indicating at the same time that he is not dealing with the case because of the interest. The relationship for the purpose of this rule will be as specified in section 6 of the Indian Companies Act, 1956 (extract given as Appendix XXIII to the Stores Purchase Manual). If any violation of this rule is detected it will be dealt with severely.
- 137. When owing to inadequate publicity or some other reason no satisfactory tender is received in response to an invitation to tender, fresh tenders should be invited and the invitation to tender should be specially brought to the notice of all possible tenderers. If considered desirable the services of
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the Director General of Supplies and Disposals, New Delhi may be requisitioned.
- When the total cost of the articles to be purchased at a time is beyond the financial powers of the purchasing officer he should forward the tenders received and other relevant records together with his recommendations to the higher authorities or Government, as the case may be, for orders.
Communication of Acceptance
- 139. (a) Save as provided in sub-paragraphs (d) to (f) below, when a tender has been once accepted finally such acceptance shall be communicated to the successful tenderer in the most expeditious manner andin any case before the period of firmness expires, if such period of firmness exists. A formal supply order should also be placed with the successful tenderer simultaneously. The supply order should furnish the description, quantity and price of the articles to be supplied. It should also prescribe the terms of delivery and the terms of payment. Clear despatch instructions should also
be given to the supplying firm.
(b) In cases where railway freight is to be borne by Government, the stores should be got down by goods train. In exceptional cases, transport by passenger train, lorry transport or by post may be resorted to, but the purchasing officer should record the reasons for adopting such a course.
Copies of the supply orders should be forwarded to the Accountant- General, to the officer who actually receives the stores and to the Sales-tax and Income-tax authorities. A standard form of supply order is given in Annexure VIII
# * * * * * *
(d) When the supply of stores is subject to the condition that the Department should produce Import License, formal supply order should be placed only after receipt of the license.
🆀For purchasing stores for Government departments, what procedures are needed in ascending order?
A:-Administrative sanction, Availability of fund, Tender and supply order
B:-Technical sanction, Tender, Quotation and Supply order
C:-Administrative sanction, supply order, delivery and quotation
D:-Tender, Administrative sanction, supply order and delivery
Correct Answer:- Option-A
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Security and Agreement
140.(i) (a)
The Purchasing Officer should arrange to take a security from the successful tenderer for the due fulfillment of the contract equivalent to 5 per cent of the total value of the contract (rounded to the nearest rupee) subject to a minimum of ` 30 in case of 5 per cent(5%) value of contract falls below ` 30. All purchases costing below ₹1,00,000 will be exempted from the requirements of security deposit and written agreement subject to the condition that in such cases prices should be agreed upon in writing as provided in Article 51 and that payment will be made only after supplies are received, verified and taken to stock. The security may also be taken in Bank guarantees from Scheduled Banks (Annexure IX) and in any of the forms mentioned under Article 288. The personal securities of two persons of known probity and substance may also be accepted in exceptional cases, when there are special reasons for doing so.
(b) The government or any authority authorised by Government may, when desirable, exempt a firm of established repute from the obligation to furnish security in respect of all contracts or for a particular contract or class of contracts made with any Department of Government.
(c) No security should be demanded or taken from any Government Institutions or any institutions listed in Annexure III, which supply stores. This provision will apply in the matter of purchase of stores from Government of India undertakings as well.
(d) Small scale Industries, cottage industries and industrial Co-operatives within the state which have been registered as such with the Industries Department (Department under the control of the Director of Industries and Commerce) on furnishing proof of such registration are exempted from furnishing security deposits against contracts for supply of Stores manufactured by them provided that an officer of and above the rank of Deputy Director of Industries and Commerce having jurisdiction over the area also certifies to the soundness and reliability of the
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concerns to undertake the contracts #[In so far as Khadi and Village Industries Co- operative Societies within the State are concerned these powers will be exercised by the Secretary, Kerala Khadi and Village Industries Board].
[This amendment shall be deemed to have come into force with effect from 5-6-1975.]
(e) After a contract has been fulfilled and payment made, the security deposit should be released or refunded to the contractor/Firm without delay. As a rule, the security deposit should be released or returned to the contractor within a maximum period of three months of the expiration of the contract. In all cases where there is guarantee for the goods supplied the security deposit will be released only after the expiry of the guarantee period.
(f) No fresh security deposit need be demanded from firms for extended period of the rate contracts originally concluded with them. The security deposit obtained against the original rate contract may be considered as security for the extended period of the rate contract. In all such cases a supplemental agreement should be entered into with the rate contract holder for the satisfactory fulfillment of the extended contract. A standard form of supplemental agreement is given in Annexure XII.
(ii) In the matter of purchase of stores by the State Government Departments, Small Scale Industrial Units sponsored by the National Small Industries Corporation Limited, New Delhi and in respect of which competency certificates are issued by the Corporation will be exempted from payment of earnest money deposits and security deposits. This will not, however, apply in the matter of purchase of Stores on rate or running contract basis.
(iii) In case the earnest money deposited by the successful contractor if any, is less than the security deposit demanded the amount of earnest money may be treated as part of security deposit and the balance amount may be
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called for from the firm. In other cases, full amount of security deposit should be called for from the firm. The earnest money submitted by all unsuccessful tenderers should also be refunded simultaneously.
#Addition C.S.No.7/75 [G.O.(P) No. 545/75/Fin., Dated 09/12/1975]
(iv) An agreement should be entered into with the successful tenderer embodying the conditions of the order and providing for the necessary penal clauses for any breach of the conditions of the contract. A standard form of agreement is given Annexure X. In the case of purchases costing above₹ 1,00,000 the purchasing officer shall forward a draft agreement to the firms along with the supply order directing them that the consignments need be sent only after executing the agreement. If any firm despatch the goods before execution of the agreement, they should be held liable for the demurrage charges, if any.
Note:— The agreements are liable to stamp duty but registration is optional Standard forms of quotation notice, supply order, bank guarantee and agreement are given in Annexures I, II, VIII, IX, X and XI.
Rate and Running Contracts
- All stores of standard types other than those required in small quantities only, which are in common and regular demand and the price of which are not subject to appreciable market fluctuations may be purchased on the basis of a Rate or Running contract, whichever is most suited to the circumstances of each particular case.
In the case of articles which cannot be stocked conveniently in the departmental store with safety and convenience, the system of running contracts should be adopted. A running contract is a contract for the supply of an of approximate quantity of stores at a specified price during a certain period .
Running contracts may be settled for the supply of articles at intervals during a whole year or a part thereof. Dietary articles, firewood, charcoal, raw materials
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for Ayurvedic medicines etc., come under this group. In settling running contracts all the rules relating to the ordinary contracts like invitation of tenders, earnest money etc., should be followed, and in addition, special provision should be made to safeguard Government interests and to ensure regular supplies. It is important that for all running contracts, tenders with earnest money should be invited irrespective of the amount involved.
A rate contract is a contract for the supply of stores at specified rates during the period covered by the contract No quantities are usually mentioned. in the contract, and the contractor is bound to accept any order which may be placed upon him at the rates specified within the contract period.
As a reciprocal consideration the Government undertakes or order from the contractor all stores under the contract which are required to be purchased subject to certain reservations for submitting prices to competition and for deciding the contract between one or more contractors.
Rate contract should be settled for such articles as are required frequently by many Departments during the course of an year for which the quantity cannot be forecast.
Rate contracts also may be settled for one year or shorter definite period. Indenting Officers can draw their requirements direct from the contractors as and when required.
Steel furniture, Steel cupboards and M.T. Batteries, Sewing Machines, etc., are some of the items coming under this group.
Running contracts may be settled by Heads of Departments and Departmental Purchase Committees, but
rate contracts will be settled by the Stores Purchase Department only.
The Director General of Supplies and Disposals, New Delhi is concluding every year rate and/or running contract for a number of articles. Purchasing Officers can avail themselves of these contracts, wherever it is economical and easier to do so. They should keep themselves conversant with the rules
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and procedure of the Director General of Supplies and Disposals Rate Contracts. The Stores Purchase Department is also concluding every year rate contract for a number of articles. In respect of purchases as per rate contracts settled by the Director General of Supplies and Disposals and the State Government, purchase sanction from Government is not necessary, even if the value of the purchase exceeds the purchase powers of the Purchasing Officer provided that it is specified while issuing administrative sanction, that the purchase will be made as per Director General of Supplies and Disposals/State Rate Contracts. In such cases, the selection of the type and make of the articles to be purchased will be made by the Purchasing Officer. It is not necessary to mention the name of the firm or description of stores etc., in the administrative sanction issued for the purchase.
In the case of items for which rate/running contracts settled by the Stores Purchase Department exist or a running contract settled by the Head of Department exists, it is obligatory for Government Departments to avail themselves of those contracts. The agreement form to be used in the case of running/rate Contract is contained in Annexure XI.
RATE CONTRACT
- Rate contract in Kerala is concluded by ________.
A:-Finance Department
B:-PWD
C:-Store Purchase Department
D:-Head of the Department
Correct Answer:- Option-C
- A _________ contract is a contract for the supply of stores at specified rates and specified period.
A:-Rate contract
B:-Lump sum contract
C:-Running contract
D:-Negotiated contract
Correct Answer:- Option-A
- In Store Purchase what factor is not mentioned normally in a Rate Contract
A:-Price
B:-Rate
C:-Quantity
D:-None of the above
Correct Answer:- Option-C
5.In a Rate Contract, the supply of stores are expected in ____________ rates during the period covered by Contract.
A:-Fixed
B:-Specified
C:-Flexible
D:-NOTA
Correct Answer:- Option-B
- A contractor is bound to accept any order for supply of any quantity of stores, if he has settled for a :
(A) Running Contract
(B) Rate Contract
(C) Running and Rate Contracts
(D) None of the above
Correct Answer:- (B) Rate Contract
7.In the Government of India, who concludes every year rate and or running contracts for a number of articles
A:-Central purchase organisation
B:-The Director General of supplies and disposals
C:-Ministry of small and medium industries
D:-Ministry of commerce
Correct Answer:- Option-B
- Which Department of the State Government is authorized to settle Rate contracts?
A:-Stores Purchase Department
B:-Finance Department
C:-Major Heads of Departments
D:-Stationery Department
Correct Answer:- Option-A
- What is the maximum quantity of stores that can be purchased on the basis of Rate contract?
A:-The maximum quantity as provided in the contract
B:-No maximum limit, The contractor is liable to supply any quantity for which orders may be placed during the period of contract
C:-Any quantity already agreed by the contractor
D:-None of the above
Correct Answer:- Option-B
RUNNING CONTRACT
- Running contracts may be settled by
A:-Stores Purchase Department
B:-Head of Department and Department Purchase Committee
C:-Finance Department
D:-Head of Office
Correct Answer:- Option- B:-Head of Department and Department Purchase Committee
- What is the important point to be borne in mind when settling a running contract for the supply of dietary articles?
A:-Tenders with earnest money should be invited irrespective of the amount involved
B:-Tenders need not be invited
C:-Earnest money need not be insisted on
D:-Running contracts will have to be settled by the Store Purchase Department
Correct Answer:- Option-A:-Tenders with earnest money should be invited irrespective of the amount involved
- A running contract is a contract for the supply of an approximate quantity of stores at a __________ price during a certain period.
A:-Fixed
B:-Specified
C:-Market
D:-Competitive
Correct Answer:- Option-B
Negotiated Contracts
(Article.142)
- When owing to greater promptitude of supply, by particular agencies of special manufacture of some articles by certain firms, substantial economy can be effected by deviating from the tender system, officers may, after negotiation purchase direct such articles from the firms or agencies concerned. This rule will apply only to patents and specialities to which tender system cannot be applied with advantage (vide also Article 126).
🆀Negotiated contract is as per ___________ of KFC Vol – 1.
A:-Art 85
B:-Art 38
C:-Art 142
D:-Art 185
Correct Answer:- Option-C:-Art 142
Examination of contracts by the Accountant General
- The Accountant General in the exercise of his audit functions will examine contracts settled by the departments and report to the Government the facts of any case that come to his notice, in which competitive tenders where not invited though they should have been invited under the rules or a tender other than the lowest was accepted without sufficient jurisdiction, or any
159 |
other materials irregularity which has been committed in connection with a contract.
Insurance of Government Property
- In the case of goodsimported from abroad, insurance charges are payable by Government, when the purchase price includes cost, insurance and freight of the goods as delivered at any Port of Entry in the State.In f.o.b. or f.a.s. contracts also insurance charges are payable by Government. In all cases of contracts where the supplying firm does not undertake insurance at its cost, the purchasing officer should arrange for insurance himself against risks in transits such as loss, damage, etc.
Insurance is essential in the case of fragile goods, costly machinery, equipments, delicate machines and instruments and such articles which deteriorate or otherwise becomes useless in transit.
Claims in respect of Imported Stores, lost or damaged
(Article.145)
- 145. (i) Purchasing Officers should see that in the case of loss or damage of imported stores, claims are promptly made against the shippers, the landing and clearing contractors of the supplies, according to circumstances or the Marine Insurance Company. A loss will be chargeable against Marine Insurance only when the responsibility for the loss or damage can not be fixed on the shippers, the landing contractors or the suppliers and recoveries should be made accordingly. In any case, loss or damage has to be reported promptly to the authorities concerned.
(ii) The report of loss or damage should show the particulars contained in the instructions in the packing account, namely description of stores, details of numbers and, where necessary, sizes and quantities, and when articles are missing the gross weights of packages as received. In all cases where defects noticed can be rectified locally the probable cost of such local repairs shall be specified. “Details of Recoveries” already effected or proposed to be
160 |
effected should also be mentioned. If no recovery has been made the fact and reasons therefore should also be reported. .
(iii) Marine Insurance does not cover risks after the movement when the stores leave the ship’s side, i.e., during landing, and it is therefore essential that brittle stores such as stoneware pipes, R.C. pipes, glassware, etc., should be landed at places of safety. Such stores should be landed at the ports only when the risk of breakage is at a minimum. Indenting Officers should clearly indicate in there indents whether any of the indented articles should be so delivered.
(iv) In all cases in which stores from foreign countries are purchased arrangements shall be made to obtain three sets of documents. One set shall be caused to be forwarded at the earliest possible date to receiving agents or clearing agents if such agents are appointed; one set will be caused to be similarly sent to the indenting officer and the third set to the Secretary, Stores Purchase Department or the Head of the Department. On receipt of the shipping documents, the indenting officer will issue necessary instructions to the receiving agents in the matter of transmission of packages, etc., copies of such correspondence being simultaneously forwarded to the Secretary, Stores Purchase Department or the Head of the Department.
Insurance on Railways or Lorry Transport
or Inland Water Transport
- When the terms of delivery accepted by the Purchasing Officer are ex-factory or ex-godown or f.o.r./f.o.b. place of despatch, the charges for onward transmission including freight and insurance have to be borne by Government. Insurance of articles supplied from sources in India is optional, but in all cases in which damage is likely insurance is advisable.
Receipt and Verification of Stores
147.(i) The Officer authorised to receive stores should himself verify the articles received with reference to the approved samples, if any and take them to stock soon after they are received. Any articles which is not new, or which
161 |
does not conform to standard specification or to approved samples or which is different from those ordered for or which is damaged or defective in any respect should not be accepted.
(ii) Stores which arrive by ship or railway or lorry or any other mode of transport should be taken delivery of immediately after arrival to avoid demurrage etc. Sanction of Government is necessary to pay demurrage, subject to however, to the powers delegated to the Purchasing Officers.
(iii) Any loss, shortage or damage of any defect noticed on checking stores should be promptly brought to the notice of all concerned. Any claim for loss, etc., should be preferred on the suppliers or transporting agents or insurance company, as the case may be, immediately after the stocks are received.
(iv) Heads of Departments can accept late supplies after recording the reasons therefor upto two months after the prescribed date of delivery. For further period, in the case of purchases costing below 40 lakhs, the orders of the Secretary to Government of the concerned Department should be taken and in the case of purchases costing above 40 lakhs, the proposals should be sent to the concerned Departmental Purchase Committee. Director of Printing and Stationery can accept late supplies upto 3 months in respect of purchases for which he is competent to sanction. The Director of Health Services can accept late supplies upto four months provided no loss on account of such extension of time is incurred by Government.
Payment for Stores
148.(a) (i)For stores purchased in India.— As a general rule, payment for supplies is not permissible unless stores have been recieved, verified, and taken to stock and provision for the observance of this rule should ordinarily be made in all contracts for the supply of goods.
(ii) Payment prior to verification of quantity and quality of material is permissible only in very exceptional cases in which the operation of
162 |
the rule in the above paragraph might result in hard- ship, as for example, when costly stores are ordered from a distant firm and delay in payment is anticipated. In such cases a part of the cost of the consignments (not exceeding 90 per cent) to a distant firm may be paid in advance on receipt of the railway receipt for despatch or bill of loading provided the firm or contractor is of well-known standing and provided an agreement is taken before-hand, with the contractor or firm to secure Government against all loss in the event of materials being found short or defective on checking.
(iii) In every exceptional cases, payment upto the full value against proof of despatch may be made with the prior sanction of Government. *Heads of the Departments may effect 100% payment in very exceptional cases, if the amount involved is less than ` 50,000 and the conditions mentioned in sub-rule (ii) above are satisfied.
(Article.148(ii)
(iv)The Officer who maintains the stock register must himself receive the new stock. Whenever a new purchase has been sanctioned and the bill for drawing the money required is ready, it must be forwarded to the officer entrusted with the maintenance of the stock register, who should certify on the office copy of the bill that the new purchase in question has been duly taken on to the stock account. In those rare cases in which it is not possible to receive stock before payment is made, e.g., when articles are received by rail or post and payment is made against documents, the officer-in-charge of stock accounts should verify the new stock or receipt and furnish a certificate of verification which should be filed with the office copy of the bill concerned.
163 |
(vi) The firms will produce stamped pre-receipted invoices in all cases where payments (advance/final) for release of railway receipts/shipping documents are made through Banks.
166 |
(c) Stock account of books, forms and stationary.— Every Head of Office should also maintain stock accounts for forms and stationery in accordance with the rules in the Stationery Manual and also a register in Form 19 of the books belonging to the office.
Note 1:— The term ‘books’ will include catalogues, periodicals etc.
Note 2:— Government libraries and museums should maintain catalogues as well as the prescribed stock accounts or inventories.
167 |
Valuation of Stores in Stock Accounts
151 When a period inventory is maintained, the value recorded in it for any item should not materially exceed its current market value. The Head of the Department concerned should issue necessary instructions to ensure that the stores are valued with reasonable accuracy and that the rates adopted are reviewed at suitable intervals by a competent authority.
152 Stores should be issued as far as possible on indents passed by an officer who has been duly authorised to pass them. Every issue should be recorded in the stock account at the time when it is made.
In respect of transactions between a main store and the sub stores under it, it is essential that there should be complete reconciliation of the issues from the main store and the receipts in the subsidiary stores to which issues are effected from the main store. The inspecting officers and other departmental officers should specially bear this point in the mind while conducting stores inspection.
Inspection of Stores
- 153.
No Government servant should hold stores in stock in excess of the quantity likely to be required for a reasonable period. To ensure that this rule is observed, a responsible officer of the Department should inspect all perishable stores once in each half-year and all the other stores once a year unless there is sufficient reason (which should be recorded) to the contrary. If he considers that any of the stores inspected is obsolete or in (excess of reasonable requirement, he should submit a report to the competent authorities either to sanction the write off of a loss of cash equivalent to their value or to transfer the surplus stores to other Departments/ Offices which may require them and also to include them in the list of surplus stores. These authorities should then pass orders as to the disposal of such stores. Heads of Departments and Offices should also review the stock position of the various stores under them as on 31st March of a year in the
168 |
month of May of the succeeding financial year and take steps to dispose of materials which have become unserviceable or are likely to become unserviceable in the near future. A copy of each of such review should be sent to Government in the administrative Department and the Finance Department so as to reach Government before 15th June of each year.
Unserviceable and Surplus Stores
- 154. Subject to any special orders issued by Government as applicable to individual cases, stores which are found to have become unserviceable in the ordinary course or by fair wear and tear may be condemned bythe authority competent to authorise replacement by purchase. Full reasons for condemning such unserviceable stores must be recorded on such orders together with a certificate to the following effect:—
“Certified that I have personally satisfied myself that each item written off in these proceedings has become unserviceable in the ordinary course through proper usage or by fair wear and tear.”
Note:— Separate sanction for write off of losses is not necessary where the stores are bodily present. It is only in such cases where the stores are missing (as in cases of fire, theft, etc.) that formal sanction for write off of losses will be necessary.
🆀Stores which are found to have become unserviceable in the ordinary course or by fair wear and tearതേയ്മാനം, may be condemned by :
(A) The authority competent to authorise replacement by purchase
(B) Head of Office
(C) Head of Dept.
(D) None of the above
Answer:-(A) The authority competent to authorise replacement by purchase
- (a)The authority referred to in the preceding Article may also condemn stores found at any time to have become unserviceable, otherwise than in the ordinary course or by fair wear and tear (e.g., by avoidable carelessness or neglect, misuse, etc.) but this should not be done until after their value has been written off by the authorities competent to write off a loss of cash equivalent to their value or the recovery of the balance has been effected from the persons responsible .
The value of stores for purpose of Articles 153 to 157 shall be taken to be their book value where priced accounts are maintained, and where these are
169 |
non-existent or suspect, their “replacement value”, i.e., market value (at the time of issue of sanction for the disposal/write off) of such new articles or articles of similar nature.
(b) When any stores become unserviceable or depreciate otherwise than in the ordinary course or by fair wear and tear, their value or the amount of such depreciation, as the case may be, should be treated as a loss to the Government within the meaning of Article 297 and the procedure prescribed therein should be strictly followed in reporting any such loss (See also Article 301).
Stores which have become unserviceable otherwise than in the ordinary course or by fair wear and tear, should never be condemned in the same order along with stores which have become unserviceable in the ordinary course or by fair wear and tear. Separate orders should be passed dealing with the stores in each of the two classes-each order should indicate the causes leading to the stores having become unserviceable or obsolete and should state how the condemned stores are to be disposed of, i.e., whether by sale or by destruction, since stores should be condemned only when they cannot be made serviceable by repairs at a reasonable cost. A copy of such order should be endorsed to the Accountant-General. Condemned stores which are quite worthless should be ordered to be destroyed.Other condemned stores should as far as possible, be sold under the orders of the authority competent to write off a loss of cash equivalent to their value and the sale proceeds credited to Government. The sale proceeds should not be taken into account for determining the value of the stores as this amount is to be treated as a miscellaneous receipt of the department concerned. The Head of the Office should record full particulars regarding all condemned stores in suitable lists from which their disposals can be checked.
170 |
4 Soon after confirmation of the auction by competent authority, the successful bidder shall deposit the bid amount in full less earnest money deposit. Articles sold at the auction shall on no account be retained in the
171 |
office for long. The period for which they will be kept and that too at the risk and loss of the successful bidder may be notified before the conduct of the auction and the written consent of the bidder therefor, obtained. In the event of failure to take delivery of the articles after the stipulated time, the articles may either be arranged to be re-auctioned or released to the original bidder himself on realisation of such retaining fee as may be reasonable in each case. In the event of re-auction the successful bidder at the previous auction shall forfeit the amount remitted by him. This position may be brought out clearly in the notice relating to the auction and the written consent of the bidders to this condition obtained prior to the auction.
- The Head of Office or any other authorised officer should be present when the articles sold are released, his presence being most essential when the release of the articles takes place sometime after the auction or when it involves processes such as weighments etc. A sale account in Form No. 20-A should be prepared and signed by the officer who supervised the auction. If the articles are released in the presence of an officer other than the one who supervised the auction, the entries in the sale account should be attested by the dated signature of such officer.
🆀A successful bidder in a tender failed to execute agreement, then
A:-His EMD is to be forfeited to Govt.
B:-The contract has to be re-arranged
C:-Loss on rearrange has to be recovered from the bidder, failed to execute agreement
D:-All the above
Correct Answer:- Option-D
- Stores remaining in stock forover a year should be considered surplus unless there is sufficient reason to treat them otherwise.
🆀
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Verification of Stores
As far as possible, the verification of large stocks and stocks of important stores should be entrusted to a responsible officer who is independent of the superior executive officer in charge of the stores . Stores should always be verified in the presence of the officer responsible for the custody of the stores or of a responsible person deputed by him to watch the verification.
Note:—
The following procedure should be observed for the audit of the accounts of furniture in the Raj Bhavan:¬
An annual certificate of verification should be sent by the Military Secretary to the Governor so as to reach the Accountant-General, Kerala on or before the 31st July of each year stating that all furniture has been inspected and checked with the stock list maintained and that he is satisfied (i) that all new supplies up-to-date have been correctly brought on to the inventories, (ii) that the inventories are correct in all respects, (iii) that the articles in stock agree with the inventories, (iv) that sale proceeds have been properly accounted for, (v) that sanctions of competent authority exist for all articles written off the inventory, and also (vi) the articles of furniture are being properly maintained and are kept in serviceable order.
Unserviceable articles may be sold and written off the stock list at the discretion of the Governor, but no valuable articles should be sold unless they are certified to be worn out, or have become useless, independently of considerations of personal taste. The amount realised from the sale of unserviceable articles should be credited to State Revenues.
- Apart from the periodical verification of stores by the Heads of Offices and other Government servants authorised in this behalf under the preceding
174 |
article, surplus check of stocks and stores should be undertaken by the superior officers in each Department at intervals at least once a year so as to ensure that stores are properly maintained and accounted for. It is necessary that the inspection should be a surprise one; but the check may be confined to important items. The results of such surprise checks should be reported to the Government in the concerned administrative department with the recommendation, if any, of the inspecting officer so as to enable the Government to take prompt and adequate action wherever necessary. The results of the surprise inspections and the orders, if any, passed should be communicated to the Accountant-General by Government in the Administrative Department.
(Article.160)
- Whenever an officer who is entrusted with the custody of stores in an office is transferred, the relieving officer should verify the stock of stores with the stock accounts certify on the stock accounts as to the correctness of the stock taken over and report the result of the verification to his immediate superior. For the purpose of this rule the Government servant entrusted with the custody of the stores is ordinarily the Head of the Office, but in a large office he may delegate this duty to a gazetted assistant, manager or recognised store-keeper. When he has done so, the verification prescribed in this Article need only be made, unless otherwise ordered in any case, when a Government servant to whom the duty has been delegated is transferred and the result of the verification should always be placed before the Head of the Office. In spite of any such delegation, the Head of the Office still will be responsible for furnishing the certificate prescribed at the foot of the various contingent bills, etc., stating that the articles billed for have been brought into account, and for exercising a general control so as to ensure that the stores are properly safeguarded and the stock accounts properly maintained.
Discrepancies found on Verification of Stores
- A deficiency detected during a verification of stores may be due to:
(i) incorrect or careless accounting;
175 |
(ii ) loss arising from fraud, theft or negligence; or
(iii) an unavoidable cause, e.g., wastage, shrinkage, spilling, etc., in the case of stores which are subject to them.
The Head of the Office or institution concerned should fully investigate the causes of any deficiency and send a full report on it to the controlling authority along with the verification report. If he holds that any loss caused to the Government through a deficiency is due to misconduct or culpable negligence on the part of any Government servant concerned, he should add his recommendation as to how the loss should be made good by recoveries from him. The controlling authority should, after such examination and investigation as the importance of the case warrants, issue or obtain from the competent authority, an order to write off the deficiency from the stock accounts. On receipt of this order the deficiency should be charged in the stock accounts with a note quoting the authority. If any recovery is ordered, a note should be recorded in the stock accounts when each amount is actually recovered.
Any excess detected during stock-taking should, after investigation, be entered in the stock accounts at once as a receipt with the remark “excess found on stock verification”. No special orders are necessary for this.
In the Annual Administration Report sent to Government the Head of the Department should furnish information as regards :
(i) The condition in which stock registers are maintained in his office and the offices subordinate to him.
(ii) Result of periodical verification of stock, and
(iii) Action taken for the adjustment of deficiencies, excesses, etc., if any, noticed during stock-taking.