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Government, Semi-government and public organization adopt which purchase procedure?
Inquiry based
Tender based
Rate contract
All the above
Tender based
Government and public sector organizations mandate a 'Tender based' purchase procedure to ensure transparency, accountability, and the best value for public funds. This process involves a competitive bidding system where organizations invite suppliers to submit formal proposals (tenders) for goods or services.
Government and public sector organizations mandate a 'Tender based' purchase procedure to ensure transparency, accountability, and the best value for public funds. This process involves a competitive bidding system where organizations invite suppliers to submit formal proposals (tenders) for goods or services.
CosteffectiveтАЛ=Total┬аLifecycle┬аCostTotal┬аBenefitтАЛ
Tender┬аScore=╬▒(Technical)+(1тИТ╬▒)(Financial)
The process operates on the principle of competitive bidding. The organization publishes a Notice Inviting Tender (NIT), detailing technical specifications and terms. Qualified suppliers submit bids, which are evaluated technically and commercially, and the contract is awarded to the most compliant and cost-effective bidder to prevent favoritism and corruption.
Ensures compliance with General Financial Rules (GFR) in India.
Provides a level playing field for all registered vendors.
Promotes financial probity and prevents arbitrary decision-making.
Stages include technical evaluation, financial opening, and reverse auction (if applicable).
High level of transparency and auditability
Competitive pricing due to market participation
Standardized evaluation criteria
Time-consuming bureaucratic process
Rigid documentation requirements
Delay in project commencement due to notice periods
Public Works Department (PWD) projects
Electrical power grid equipment procurement
Infrastructure development for government utilities
Government Procurement in India is primarily governed by the Public Procurement Division, Department of Expenditure.
Option A (Inquiry based) is generally used for small-value local purchases, not major capital expenditure.
Option C (Rate contract) is a specific type of tender for repetitive, long-term supply needs, but the underlying procurement method remains tender-based.
B is correct тАФ Government and public organizations exclusively use tender-based systems to maintain transparency and fiscal responsibility in procurement.
Always remember that in public sector electrical projects, 'L1' (Lowest Bidder) is the standard for financial evaluation after the technical bid clears mandatory qualifying parameters.