Rule 150 of The General Financial Rules 2017 Registration of Suppliers
Original Rule Text
( i ) [For goods and services not available on GeM, Head of Ministry/ Department may also register suppliers of goods and services which are specifically required by that Department or Office, periodically. Registration of the supplier
should be done following a fair, transparent and reasonable procedure and after giving due publicity. Such registered suppliers should be boarded on GeM as and when the item or service gets listed on GeM.]
( ii ) Credentials, manufacturing capability, quality control systems, past performance, after-sales service, financial background etc. of the supplier(s) should be carefully verified before registration.
( iii ) The supplier(s) will be registered for a fixed period (between 1 to 3 years) depending on the nature of the goods.
At the end of this period, the registered supplier(s) willing to continue with registration are to apply afresh for renewal of registration. New supplier(s) may also be considered for registration at any time, provided they fulfill all the required conditions.
( iv ) Performance and conduct of every registered supplier is to be watched by the concerned Ministry or Department.
The registered supplier(s) are liable to be removed from the list of approved suppliers if they fail to abide by the terms and conditions of the registration or fail to supply the goods on time or supply substandard goods or make any false declaration to any Government agency or for any ground which, in the opinion of the Government, is not in public interest.
( v ) [The list of registered suppliers for the subject matter of procurement be exhibited on websites of the Procuring
Entity/ their e-Procurement portals.]
Visual Summary
Process for registering suppliers for goods and services not on GeM.
Ensures equitable registration with due publicity and clear procedures.
Suppliers registered for fixed terms, subject to performance review and renewal.
Executive Summary
Rule 150 of the General Financial Rules, 2017, outlines the procedure for Ministries and Departments to register suppliers for goods and services that are not available on the Government e-Marketplace (GeM). It mandates a fair, transparent, and reasonable registration process, requiring due publicity and thorough verification of supplier credentials. Suppliers are registered for a fixed period, typically between one to three years, and their performance is continuously monitored. Renewal of registration requires a fresh application, and non-compliance with terms and conditions can lead to removal from the approved list. This rule ensures quality and integrity in procurement outside the GeM platform.
In-Depth Analysis of the Rule
Rule 150 is a critical component of the General Financial Rules, 2017, providing a structured framework for government entities to manage their supplier base for specialized or unique procurement needs not covered by the GeM portal. This ensures that even for non-standard items, the principles of good governance and financial propriety are upheld.
Breakdown of the Rule:
- Scope of Registration: Ministries/Departments are authorized to register suppliers for goods and services specifically required by them, provided these items are not available on the Government e-Marketplace (GeM). This ensures flexibility for specialized procurement.
- Procedure for Registration: The registration process must adhere to principles of fairness, transparency, and reasonableness. It explicitly requires due publicity to attract a wide range of potential suppliers.
- Verification of Credentials: Before registration, a comprehensive verification of supplier credentials is mandatory. This includes assessing manufacturing capability, quality control systems, past performance, after-sales service, and financial background.
- Fixed Registration Period: Suppliers are registered for a fixed duration, typically ranging from one to three years, depending on the nature of the goods or services. This prevents indefinite registration without re-evaluation.
- Renewal Process: At the end of the fixed period, registered suppliers wishing to continue must apply afresh for renewal, fulfilling all current conditions. New suppliers can also be considered at any time if they meet the requirements.
- Performance Monitoring and Removal: The concerned Ministry or Department is responsible for monitoring the performance and conduct of every registered supplier. Suppliers who fail to comply with registration terms, supply substandard goods, or make false declarations are liable to be removed from the approved list.
- Public Exhibition of List: The list of registered suppliers for procurement should be exhibited on the websites of the Procuring Entity or their e-Procurement portals, enhancing transparency.
Practical Example:
Consider a specialized research department that requires unique scientific instruments not listed on GeM. Following Rule 150, the department would initiate a supplier registration drive, publicizing the requirements. Interested manufacturers would submit applications, undergoing rigorous verification of their technical expertise, manufacturing facilities, quality certifications, and financial stability. Once approved, a supplier might be registered for two years. During this period, the department would monitor the supplier’s adherence to quality standards and delivery schedules. Before the two-year term expires, the supplier would need to re-apply, demonstrating continued compliance and updated credentials, ensuring the department always engages with competent and reliable partners.
Related Provisions
Rule 150 operates within a broader framework of procurement regulations. Other relevant provisions include:
- Rule 149 of The General Financial Rules, 2017 Government e-Marketplace GeM: This rule mandates procurement through GeM for common use goods and services, making Rule 150 applicable for items not available there.
- Rule 144 of The General Financial Rules, 2017 Fundamental Principles of Public Buying: Lays down the overarching principles of efficiency, economy, transparency, and fair treatment that govern all public procurement, including supplier registration.
- Rule 151 of The General Financial Rules, 2017 Debarment from Bidding: Details the conditions under which a bidder can be debarred, which is a direct consequence of failing to meet the standards implied by Rule 150’s monitoring provisions.
Learning Aids
Mnemonics:
- R.E.G.I.S.T.E.R. – Register Ensures Good Integrity, Supplier Transparency, Evaluation, Renewal.
Multiple Choice Questions (MCQs)
1. What is the primary purpose of Rule 150 of the General Financial Rules, 2017?
- A) To mandate procurement through GeM.
- B) To outline the process for registering suppliers for goods/services not on GeM.
- C) To define capital expenditure.
- D) To establish rules for inter-departmental adjustments.
Show Answer
Correct Answer: B) To outline the process for registering suppliers for goods/services not on GeM.
2. According to Rule 150 of the General Financial Rules, 2017, what is a key requirement for the supplier registration procedure?
- A) It must be exclusive to large corporations.
- B) It must be fair, transparent, and reasonable, with due publicity.
- C) It must prioritize speed over thoroughness.
- D) It must be conducted annually for all suppliers.
Show Answer
Correct Answer: B) It must be fair, transparent, and reasonable, with due publicity.
3. For how long are suppliers typically registered under Rule 150 of the General Financial Rules, 2017?
- A) Indefinitely until removed.
- B) A fixed period between 1 to 3 years.
- C) A maximum of 6 months.
- D) Until the specific project is completed.
Show Answer
Correct Answer: B) A fixed period between 1 to 3 years.
4. Which of the following is NOT a credential to be verified before supplier registration under Rule 150 of the General Financial Rules, 2017?
- A) Manufacturing capability.
- B) Quality control systems.
- C) Political affiliations.
- D) Financial background.
Show Answer
Correct Answer: C) Political affiliations.
5. Under Rule 150 of the General Financial Rules, 2017, what happens if a registered supplier fails to abide by the terms and conditions of registration?
- A) They receive a warning and a grace period.
- B) They are immediately debarred from all government contracts.
- C) They are liable to be removed from the list of approved suppliers.
- D) Their registration is automatically renewed for a shorter period.
Show Answer
Correct Answer: C) They are liable to be removed from the list of approved suppliers.
Frequently Asked Questions
Q1: Does Rule 150 of the General Financial Rules, 2017 apply to all procurements?
A1: No, Rule 150 specifically applies to the registration of suppliers for goods and services that are not available on the Government e-Marketplace (GeM). For items available on GeM, procurement is mandatory through that platform.
Q2: What is the importance of “due publicity” in supplier registration under Rule 150 of the General Financial Rules, 2017?
A2: Due publicity is crucial for ensuring a fair, transparent, and reasonable registration procedure. It allows a wider pool of potential suppliers to be aware of and participate in the registration process, thereby promoting healthy competition and equitable treatment among vendors.
Q3: Can a supplier’s registration be permanent under Rule 150 of the General Financial Rules, 2017?
A3: No, suppliers are registered for a fixed period, typically between one to three years, depending on the nature of the goods. At the end of this period, they must apply afresh for renewal, and their performance and adherence to conditions are reviewed.
Key Takeaways
- Rule 150 governs the registration of suppliers for goods and services not available on the GeM portal.
- The registration process must be fair, transparent, reasonable, and include due publicity.
- Thorough verification of supplier credentials, including manufacturing capability, quality control, and financial background, is mandatory.
- Suppliers are registered for fixed periods (1-3 years), with ongoing performance monitoring and a requirement for fresh application upon renewal.
Conclusion
Rule 150 of the General Financial Rules, 2017, plays a vital role in ensuring that government procurement for specialized needs, outside the scope of GeM, is conducted with the highest standards of integrity and efficiency. By mandating transparent procedures, rigorous verification, and continuous performance monitoring, it safeguards public funds and promotes a reliable supplier base, ultimately contributing to effective financial management across government departments.