Pharmacist: Procurement in NTEP

 Procurement refers to the process by which governments and state-owned enterprises purchase goods and services from the private sector.

Procurement” means acquisition by way of purchase, lease, license or otherwise, either using public funds or any other source of funds (e.g. grant, loans, gifts, private investment etc.) of goods, works or services or any combination thereof.

 

 

Resources

1. Manual for procurement of goods; Ministry of Finance, GoI 2017.

 

Assessment

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
What does procurement include?	Buying and process of buying	Tendering	Acquiring goods from an external source	All of the above	4	Procurement refers to the process by which governments and state-owned enterprises purchase goods and services from the private sector.		Yes	Yes

Fundamental principles of public buying (for all procurements including procurement of works). Every authority delegated with the financial powers of procuring goods in the public interest shall have the responsibility and accountability to bring efficiency, economy, and transparency in matters relating to public procurement and for fair and equitable treatment of suppliers and promotion of competition in public procurement.

The 5 Rights of Procurement are inter-linked, each having an effect on the other. Therefore, the importance of the five Rights of Procurement is the impact the failure to achieve one Right has on the success of achieving all 5 Procurement Rights and provides a framework for effective purchasing and supply chain management.

 

 

• The description of the subject matter of procurement to be objective, functional, generic and measurable and specify technical, qualitative and performance characteristics. Not indicate a requirement for a particular trademark, trade name or brand
• The specifications in terms of quality, type etc., as also quantity of goods to be procured, should be clearly spelt out keeping in view the specific needs of the procuring organisations. 
• Care should also be taken to avoid purchasing quantities in excess of the requirement to avoid inventory carrying costs.
• Offers should be invited following a fair, transparent and reasonable procedure.
• The procuring authority should satisfy itself that the price of the selected offer is reasonable and consistent with the quality 
  Procuring authority must place on record in considerations which weighed with it while taking the procurement decision required.
   

Resources

1. Manual for procurement of goods 2017, Ministry of Finance, GoI
2. General Financial Rules 2017, Ministry of Finance, GoI

Assessment:

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
What are the principles of procurement?	Transparency, specification, evaluation, ethics, confidentiality	Transparency, sensitivity, expensive, ethics, confidentiality	Timeliness, specification, evaluation, ethics, confidentiality	Transparency, specification, evaluation, management, confidentiality	1	Transparency, specification, evaluation, ethics, confidentiality

Policymakers crafting a sound procurement system must balance a number of goals - transparency, competition and integrity are the most important. If a government’s procurement system reflects all three elements, the system is much more likely to achieve the best value in procurement and maintain political legitimacy. 

Figure 1: Essentials of a procurement system

1. Transparency

A transparent procurement system ensures that rules are followed, non-compliance can be identified and addressed and all the stakeholders can monitor the process. A sound procurement system generally involves:

• Publicity of procurement opportunities and the disclosure of the rules to be followed.
• Undertaking procurement processes publicly and visibly, according to prescribed rules and procedures that limit the discretion of officials.
• The provision of a system for monitoring and enforcing applicable rules.

 

2. Competition

Competition in public procurement usually means that two or more bidders act independently and engage in a contest for the opportunity to secure the procuring entity’s contract by offering the most favourable terms. It is an important driver of innovation and helps achieve the best value-for-money- lower prices and better quality of goods, services and works.

3. Objective criteria in decision-making

Objectivity in decision-making in the context of public procurement refers to striving (as far as possible) to reduce or eliminate biases, prejudices and subjective evaluations.

• Closely linked with the principles of non-discrimination, equal treatment (fairness) for providers and integrity.
• No distinction should be made between providers of goods, services or works except where this is justified based on relevant objective considerations.
• Integrity requires objectivity at all stages of the procurement process and ethical conduct by all parties involved, as well as an independent and effective remedy system

 

All the purchases should be made in a transparent, competitive and fair manner to secure the best value for money.

Resource

Good Practices in Ensuring Compliance with Article 9 of The United Nations Convention Against Corruption; United Nations Office on Drugs & Crime, 2013.

 

Assessment

Question​

Answer 1​

Answer 2​

Answer 3​

Answer 4​

Correct answer​

Correct explanation

A sound procurement system balances which three goals?

Transparency, competition and objective criteria in decision making

Transparency, discrimination, favouritism

Subjectivity, time-bound, specific

None of the above

1

Policymakers crafting a sound procurement system must balance a number of goals - transparency, competition and integrity are the most important.

Figure: Different types of Procurements

Figure: Procurement Process

Resources

1.  Manual for Procurement of Goods 2017

Assessment:

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
Procurement process involves	Need assessment	Bid Invitation	Bid Evaluation	Contract execution& Disposal of scrap	All of the above	Procurement process involves Need assessment Bid Invitation Bid Evaluation Contract execution& Disposal of scrap	​	Yes	Yes

 

 

 

 

 

 

z

GeM stands for Government e-Market Place. It is the digital eCommerce portal for the procurement and selling of goods and services by the Government of India.

 

Fig 1: Logo of GeM

Source:https://gem.gov.in

• Government e-Marketplace (GeM) facilitates online procurement of common-use goods & services required by various government departments/organisations / public sector units (PSUs).
• GeM aims to enhance transparency, efficiency and speed in public procurement.
• It provides the tools of e-bidding, reverses e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.

Significance 

GeM is a completely paperless, cashless and system driven e-marketplace that enables procurement of common-use goods and services with minimal human interface.

It aims at:

• Instituting a unified procurement policy to encourage behavioural change and drive reform
• Establishing a lean, dynamic organisation capable of continuous innovation and market-driven decision making
• Building an easy-to-use, fully automated platform to ensure transparency and efficiency in procurement
• Demonstrating commitment to delivering value by ensuring the right quality at the right price
• Creating a sustainable ecosystem covering all stakeholders and driving inclusive development in India

Resources

1. GeM web portal  

Assessment:

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
What are the advantages of GeM?	Paperless procurement processes	Cashless procurement processes	1& 2	None	3	GeM is a completely paperless, cashless and system-driven eMarketplace that enables procurement of common-use goods and services with minimal human interface.	​	Yes	Yes

Depending upon the total value of procurement, the GeM platform provides three primary buying modes:

Direct purchase:

Direct purchase enables buyers to buy products of value up to INR 25,000 that meet the requisite quality, specifications, and delivery period without comparison (except automobiles) through any available sellers on GeM.

Direct purchase with L1

The Direct Purchase with L1 is used for mid-value (INR 25,000 to 50,000) transactions and allows the buyer to directly procure from the L1 seller after comparing all available sellers on the platform that meet the requisite quality, specification and delivery period as specified by the buyer. The comparison must be made between goods/services of at least three different manufacturers/Original Equipment Manufacturers (OEMs) and three different sellers.

E-Bid/ Reverse Auction

The E-bid/Reverse Auction mode allows buyers to conduct an electronic bid for the goods and services on the platform. The creation of bid documents as well as system-driven evaluation, are driven through well-defined and standardized technical parameters. The GeM platform shall provide buyers with the option to customize the bid, as per their requirements by way of objective selections.

Proprietary Article Certificate (PAC) Buying

The GeM platform allows buyers to procure on a proprietary basis by using the PAC filter provided on the GeM platform, which allows the selection of a specific model/makes from a particular seller that is available on the platform.

Resources

GeM training modules

 

Assessment

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
Who hosts the GeM portal	Ministry of Health and Family welfare	Central TB Division	Directorate General of Supplies and Goods	Ministry of commerce	3	GeM portal is hosted by the Directorate General of Supplies and Goods.		YES	YES

 

 

Direct purchase enables a buyer to buy services of value up to Rs. 25,000, which meets the requisite quality, specifications and delivery period without comparison(except automobiles), through any of the available sellers on the Government e-Marketplace (GeM) portal.

Steps include:

 1.Login to the GeM portal as a buyer

 

2. Click on Market--> Services

 

3. Select the service required

 

 

 

4. Check 'Service Level Agreement'

 

5. Select consignee location and number of resources. Fill in contract dates.

 

 

6. Fill in delivery details

 

 

7. Can view different service providers

 

8. Apply filters

 

9.'Add to Cart' the required one

10. Review cart and proceed

11. Preview Formula

 

12. 

13. Click on 'Direct Purchase' to proceed

14. Click 'Confirm'

 

15. Enter the 'Reason for Choosing the Seller'

 

 

16.

 

17. Enter 'Financial Details'

18.

 

 

19.

 

20.

 

 

21.

 

 

22.

 

Resources

1. GeM Portal.

Assessment

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
Which service/s are eligible for direct procurement through GeM?	Services of value above Rs 1 lakh	Services of value up to Rs. 25,000	None of the above	All of the above	2	Direct Purchase enables a buyer to buy services of value up to Rs. 25,000 (except automobiles) through any of the available sellers on GeM.

A tender is an invitation to bid for a project or accept a formal offer. Tender is a process on its own; bidding is just a step towards applying for the tender and getting it. 

The process of floating a tender through the Government e-Marketplace (GeM) portal has the following steps:

Step 1: Login to the GeM portal using your credentials

Figure 1: Logging into GeM portal

Source: GeM portal

 

Step 2: Search for the desired product

On logging in, a “Search” option is available at the top section of the same. Click on the “Categories” section of the site and select the product or click on the “search” option and enter the product's name.

Figure 2: Options to search for the desired product

Source: GeM portal

Step 3: Choose the desired product

After searching, product/products will come under the L1 category. If you want to buy items which are made in India, click on the “Made in India” section. However, before you can bid on something, you will need to compare the same with others. This enables you to find the best offering available under the amount of money you are willing to spend. 

For this, click on the “Compare” option first. Various other similar options come up on the screen. Compare them side by side.

Figure 3: Comparing products and selecting the desired one

Source: GeM portal

 

Step 4: Bid on the product

Once the comparison procedure is done, tap on the “Add to Cart” option available under the product. A new window will open; tap on the “Proceed to Checkout” option. Select the “Bidding” option.

Figure 4: Proceed to checkout

Source: GeM portal

Figure 5: Select the‘ Bidding’ option

Source: GeM portal

 

Step 5: Entering bid details and finalizing

On selecting the “Bidding" option, the bid details page opens. Fill in all details and create the bid.

Figure 6: Bid details page

Source: GeM portal

Figure 7: Create a bid

Source: GeM portal

 

Review the terms and conditions and click “Finalize Bid”.

Figure 8: Finalizing bid

Source: GeM portal

 

The bid is generated and details are displayed.

Figure 9: Successful bid creation

Source: GeM portal

On clicking the bid number, you can anytime review the bid- cancel or extend it.

Figure 10: Review of bid

Source: GeM portal

 

Resources

GeM portal https://gem.gov.in/

Assessment

Question​	Answer 1​	Answer 2​	Answer 3​	Answer 4​	Correct answer​	Correct explanation​	Page id​	Part of Pre-test​	Part of Post-test​
GeM portal has the option to select ‘Made in India’ products.	True	False			1	If you want to buy items which are made in India, click on the “Made in India” section.		Yes	Yes