Rule 180 of The General Financial Rules 2017 Consultant Services Identification

Rule 180 of The General Financial Rules 2017 Consultant Services Identification

Original Rule Text

Rule 180 Identification of Services required to be performed by Consultants: Engagement of consultants may be resorted to in situations requiring high quality services for which the concerned Ministry/ Department does not have requisite expertise. Approval of the competent authority should be obtained before engaging consultant(s).

Visual Summary

High Quality Services

Consultants for specialized, high-standard tasks.

Lack of Internal Expertise

Engage when department lacks necessary skills.

Competent Authority Approval

Mandatory sanction before engagement.

Executive Summary

Rule 180 of the General Financial Rules, 2017, outlines the conditions under which a Ministry or Department may engage consultants. This is permissible when there is a need for high-quality services that the Ministry or Department lacks the internal expertise to provide. Crucially, any such engagement requires prior approval from the competent authority.

In-Depth Analysis of the Rule

Introduction: Rule 180 serves as a foundational guideline for government entities seeking external specialized knowledge. It acknowledges that certain tasks demand a level of expertise or a quality of service that may not be available within the existing departmental structure.

Breakdown of the Rule:

  • Purpose of Engagement: Consultants are to be engaged specifically for “high quality services.” This implies tasks that require specialized skills, advanced knowledge, or a level of precision beyond routine departmental capabilities.
  • Condition for Engagement: The primary trigger for engaging a consultant is the absence of “requisite expertise” within the concerned Ministry or Department. This prevents unnecessary outsourcing of tasks that could be handled internally.
  • Mandatory Approval: Before any consultant can be engaged, explicit “Approval of the competent authority should be obtained.” This ensures accountability and adherence to financial propriety, preventing arbitrary or unauthorized engagements.

Practical Example: A Ministry planning a complex digital transformation project realizes its IT department lacks specialized expertise in AI-driven data analytics and cloud architecture at the scale required. Citing Rule 180, the Ministry identifies the need for external consultants to design and oversee these high-quality, specialized services. They then seek and obtain approval from the Secretary of the Ministry (the competent authority) before initiating the procurement process for the consulting firm.

Related Provisions

To fully understand the context of consultant engagement, consider these related rules:

Learning Aids

Mnemonics
  • IS HQ NE AR: Identify Services, High Quality, No Expertise, Approval Required.
Process Flowchart
STARTNeed High Quality Services?Ministry Lacks Expertise?Obtain Competent Authority ApprovalEngage ConsultantEND

Multiple Choice Questions (MCQs)

1. Under Rule 180 of the General Financial Rules, 2017, for what primary reason may a Ministry or Department engage consultants?

  • A) To reduce workload on existing staff.
  • B) To acquire high-quality services for which internal expertise is lacking.
  • C) To delegate routine administrative tasks.
  • D) To bypass standard procurement procedures.
Show Answer

Correct Answer: B) To acquire high-quality services for which internal expertise is lacking.

2. According to Rule 180 of the General Financial Rules, 2017, what is a mandatory step before engaging any consultant?

  • A) Public advertisement of the consultancy requirement.
  • B) Approval from the Ministry of Finance.
  • C) Obtaining approval from the competent authority.
  • D) Conducting a cost-benefit analysis.
Show Answer

Correct Answer: C) Obtaining approval from the competent authority.

3. Rule 180 of the General Financial Rules, 2017, emphasizes the engagement of consultants for services that are:

  • A) Low-cost and easily available.
  • B) Routine and repetitive.
  • C) High-quality and require specialized expertise.
  • D) Non-essential for departmental operations.
Show Answer

Correct Answer: C) High-quality and require specialized expertise.

4. Which of the following is NOT a condition for engaging consultants under Rule 180 of the General Financial Rules, 2017?

  • A) The services required are of high quality.
  • B) The Ministry/Department lacks requisite expertise.
  • C) The engagement is for a period exceeding one year.
  • D) Approval of the competent authority is obtained.
Show Answer

Correct Answer: C) The engagement is for a period exceeding one year.

5. In the context of Rule 180 of the General Financial Rules, 2017, what does “requisite expertise” primarily refer to?

  • A) The financial capacity of the Ministry/Department.
  • B) The availability of necessary infrastructure.
  • C) The specialized knowledge and skills needed for a task.
  • D) The administrative efficiency of the department.
Show Answer

Correct Answer: C) The specialized knowledge and skills needed for a task.

Frequently Asked Questions

Q: What kind of services does Rule 180 of the General Financial Rules, 2017, permit for consultant engagement?

A: Rule 180 permits the engagement of consultants for “high quality services” that require specialized knowledge or skills not available within the Ministry or Department.

Q: Is approval always necessary before engaging a consultant under Rule 180 of the General Financial Rules, 2017?

A: Yes, Rule 180 explicitly states that “Approval of the competent authority should be obtained before engaging consultant(s).” This is a mandatory requirement.

Q: Can a Ministry engage a consultant if it has internal staff who *could* perform the service, but are currently overloaded?

A: Rule 180 specifies engagement when the Ministry/Department “does not have requisite expertise.” While staff overload might be a practical concern, the rule’s primary condition is a lack of *expertise*, not merely capacity. Engaging consultants solely due to overload might require justification beyond Rule 180’s core premise.

Key Takeaways

  • Consultants are engaged for high-quality services.
  • Engagement is justified by a lack of internal expertise within the Ministry/Department.
  • Mandatory approval from the competent authority is required before engaging consultants.
  • This rule ensures that specialized needs are met while maintaining financial propriety and accountability.

Conclusion

Rule 180 of the General Financial Rules, 2017, provides a clear framework for Ministries and Departments to strategically leverage external expertise. By stipulating the need for high-quality services and a demonstrable lack of internal capability, coupled with mandatory competent authority approval, the rule ensures that consultant engagements are both justified and accountable, ultimately contributing to effective governance and project execution.