Push button provisioning for low value purchases purely on an experimental basis

Push-button supply for low-value purchases purely on an experimental basis for one year from launch date

Government of India
Ministry of Finance
Expenditure Department
Office of the Comptroller General
Room No. 203, 2nd Floor, Mahalekha Nivantrak Bhawan
Block – E, GPO Complex, INA, New Delhi-110023

F.No. A-65061(55)/60/2020-Admin-CGA/1377

Dated: 22.09.2022

Memo

Sub: Push button supply.

Reference is invited to OM No. F.6/7/2022-PPD dated September 6, 2022 issued by the Procurement Policy Division, Expenditure Department regarding push button procurement for low cost procurement. value purely for experimental purposes, for one year from the date of Launch by GeM with the condition mentioned therein.

The MO above is circulated to all sections of the Office of the Comptroller General for information and action.

(Anil Amar Singh)
Senior Accounts Officer (admin)


Government of India
Ministry of Finance
Expenditure Department
Supply Policy Division

264-C, North Block, New Delhi.
September 6, 2022

BUREAU MEMORANDUM

Subject: Push button supply.

In accordance with Rule 144 (vii) of the General Financial Rules (GFR), the procuring entity must ensure that the price of the selected tender is reasonable. Even when contracting through the Government e-Marketplace (GeM), RGF Rule 149 states that the contracting authority will certify the reasonableness of the rates. Guidance for checking the reasonableness of tariffs has been provided in the procurement manuals published by this department.

2. It has been reported to this department that sometimes particularly infrequent government buyers have difficulty in certifying the reasonableness of rates. These users do not normally have the skills required to make procurement decisions. This delays the procurement process. At the same time, for generally low-value purchases, efforts to assess the reasonableness of rates may be disproportionate. Additionally, developments in technology and e-procurement becoming the norm, the availability of market data and the ability to analyze it artificially, have provided an opportunity to automate decision-making activities, such as assessment of the reasonableness of tariffs in such cases.

3 In view of the above, it has been decided to launch “Push Button Procurement (PBP) for low value purchases purely on a trial basis, for one year from the date of launch by GeM, in the following conditions:

(a) PBP will only be conducted on GeM through auctions (PBP through Direct Buy. L-1, Personalized Bids, etc. are not permitted).

(b) The total value of purchases of the specific case must not exceed Rupees One lakh including all taxes.

(c) This will be an additional procurement method and procuring entities are free to use or not to use this additional procurement method.

(d) This method can only be used if at least five offers are received. In the event that less than five bids are received, procurement shall restart using normal procurement methods.

(e) No splitting of requirements shall be made in order to pass supply through this method.

(f) Once tendered on GeM, the contract will be placed directly by GeM without any human intervention (provided condition 3(d) above is met.)

(g) This method will only be permitted by GeM for those categories, where at least ten sources are listed.

4. Detailed guidelines will be uploaded by GeM on its portal.

5. This is issued with the approval of the Financial Secretary.

(Kanwalpreet)
Director (PPD)
Tel.N°23093811

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