Rule 147 of The General Financial Rules 2017 Powers for Procurement of Goods
Original Rule Text
Visual Summary
Full authority for non-GeM goods/services.
Required for common use items on GeM (Rule 149).
Covers both non-GeM and mandatory GeM items.
Executive Summary
Rule 147 of The General Financial Rules, 2017 outlines the procurement powers of Ministries and Departments. It grants them full autonomy to arrange for goods and services not available on the Government e-Marketplace (GeM). Conversely, for common use goods and services that are available on GeM, procurement through the GeM portal is explicitly made mandatory, with further details provided in Rule 149. This rule aims to balance flexibility for specialized needs with standardized, efficient procurement for common items.
In-Depth Analysis of the Rule
Introduction: Rule 147 serves as a foundational principle for public procurement, delineating the authority of government entities in acquiring necessary goods and services. It establishes a dual framework, distinguishing between items available on the Government e-Marketplace (GeM) and those that are not.
Breakdown of the Rule:
- Delegated Powers for Non-GeM Items: Ministries and Departments are granted “full powers” to make their own arrangements for procuring goods and services that are not available on GeM. This provision ensures that specialized or unique requirements, which might not be met by standardized GeM offerings, can be addressed efficiently through direct departmental procurement processes.
- Mandatory GeM Procurement: For “common use Goods and Services available on GeM,” procurement through the GeM portal is explicitly made mandatory. This clause promotes transparency, efficiency, and cost-effectiveness by channeling routine procurements through a centralized online marketplace.
- Reference to Rule 149: The rule specifically directs users to “Rule 149” for further details regarding the mandatory procurement through GeM. This indicates a hierarchical structure within the General Financial Rules, where Rule 147 sets the overarching principle, and Rule 149 provides the operational specifics for GeM-based procurement.
Practical Example: Consider the Ministry of Health and Family Welfare. If they need to procure highly specialized medical research equipment that is custom-made and not listed on GeM, Rule 147 grants them the full powers to arrange this procurement through their own established procedures. However, if the same Ministry needs to purchase standard office stationery, computers, or common vehicle maintenance services, and these are available on GeM, then Rule 147, in conjunction with Rule 149, mandates that they must procure these items through the GeM portal.
Related Provisions
To fully understand the context and implications of Rule 147, it is beneficial to review the following related provisions:
- Rule 149 of The General Financial Rules 2017 Government e-Market place GeM: This rule provides the detailed framework and procedures for mandatory procurement through the Government e-Marketplace (GeM), which is directly referenced by Rule 147.
- Rule 144 of The General Financial Rules 2017 Fundamental Principles of Public Buying: This rule lays down the overarching principles of efficiency, economy, transparency, and fair treatment that govern all public procurement, including those under Rule 147.
Learning Aids
Mnemonics
- “GeM or Go My Way”: If it’s on GeM, use GeM. If not, Ministries have their own way (full powers).
Process Flowchart
Multiple Choice Questions (MCQs)
1. According to Rule 147 of the General Financial Rules, 2017, what powers do Ministries or Departments have for procuring goods and services NOT available on GeM?
- A) Limited powers, requiring Ministry of Finance approval.
- B) Full powers to make their own arrangements.
- C) No powers, must seek alternatives or special sanction.
- D) Powers restricted to a maximum monetary limit.
Show Answer
Correct Answer: B) Full powers to make their own arrangements.
2. For common use Goods and Services available on GeM, Rule 147 of the General Financial Rules, 2017 states that procurement is:
- A) Optional, depending on departmental preference.
- B) Mandatory through GeM as per Rule 149.
- C) Prohibited, encouraging direct market engagement.
- D) Subject to a competitive bidding process outside GeM.
Show Answer
Correct Answer: B) Mandatory through GeM as per Rule 149.
3. Rule 147 of the General Financial Rules, 2017 explicitly refers to which other rule for mandatory GeM procurement?
- A) Rule 144
- B) Rule 146
- C) Rule 149
- D) Rule 150
Show Answer
Correct Answer: C) Rule 149.
4. If a Ministry needs to procure a highly specialized software solution that is not listed on the Government e-Marketplace, how should they proceed according to Rule 147 of the General Financial Rules, 2017?
- A) They must wait for the software to be listed on GeM.
- B) They can make their own arrangements using their full delegated powers.
- C) They need to obtain special exemption from the Ministry of Finance.
- D) They are restricted to procuring only from public sector vendors.
Show Answer
Correct Answer: B) They can make their own arrangements using their full delegated powers.
5. Which of the following statements is INCORRECT regarding Rule 147 of the General Financial Rules, 2017?
- A) Ministries have full powers for goods not available on GeM.
- B) Procurement of common use goods on GeM is mandatory.
- C) The rule aims to standardize all procurement processes, regardless of GeM availability.
- D) Rule 149 provides further details on GeM procurement.
Show Answer
Correct Answer: C) The rule aims to standardize all procurement processes, regardless of GeM availability.
Frequently Asked Questions
1. Does Rule 147 of The General Financial Rules, 2017 allow Ministries to bypass GeM for any procurement?
No, Rule 147 specifies that while Ministries have full powers for goods and services not available on GeM, procurement of common use goods and services available on GeM is mandatory as per Rule 149. It does not allow bypassing GeM for items listed there.
2. What does “full powers” mean for non-GeM procurement under Rule 147 of The General Financial Rules, 2017?
“Full powers” means that Ministries or Departments can make their own arrangements for procuring goods and services not available on GeM, without needing to seek additional specific approvals from higher authorities solely for the method of procurement, provided they follow other applicable financial rules and regulations.
3. Is there any exception to the mandatory GeM procurement under Rule 147 of The General Financial Rules, 2017?
Rule 147 itself states that common use goods and services available on GeM are required to be procured mandatorily through GeM. Any exceptions or specific procedures would be detailed in Rule 149 or other related instructions, but the general principle is mandatory use for GeM-listed items.
Key Takeaways
- Ministries and Departments possess full delegated powers for procuring goods and services that are not available on the Government e-Marketplace (GeM).
- Procurement of common use goods and services available on GeM is mandatory, as stipulated by Rule 147 and further elaborated in Rule 149.
- The rule establishes a balanced approach, allowing flexibility for specialized non-GeM procurements while enforcing standardization and efficiency for common GeM-listed items.
Conclusion
Rule 147 of The General Financial Rules, 2017 is a pivotal regulation that defines the scope of procurement authority for government entities. By clearly distinguishing between GeM-listed and non-GeM items, it ensures that Ministries and Departments can efficiently acquire necessary resources while adhering to principles of transparency and fiscal prudence. This dual approach supports both specialized operational needs and the broader government objective of streamlined, cost-effective public procurement.