Rule 186 of The General Financial Rules 2017 Request for Proposal Preparation and Issue
Original Rule Text
Visual Summary
Obtain offers from consultants for required services.
Issued to shortlisted consultants for technical & financial proposals.
Invitation, TOR, Evaluation Criteria, Contract Terms.
Executive Summary
Rule 186 of the General Financial Rules, 2017, outlines the essential requirements for preparing and issuing a Request for Proposal (RFP) when engaging consultants. This rule mandates that an RFP, a crucial document for soliciting offers, must be issued to shortlisted consultants and include specific details such as a letter of invitation, terms of reference, eligibility criteria, bid evaluation procedures, and proposed contract terms. Its purpose is to ensure a transparent and structured process for obtaining technical and financial proposals for consulting services.
In-Depth Analysis of the Rule
Introduction: In the realm of government procurement of services, particularly consulting services, the Request for Proposal (RFP) serves as the foundational document. Rule 186 of the General Financial Rules, 2017, meticulously details the structure and content required for such RFPs, ensuring clarity, fairness, and comprehensive information exchange between the procuring Ministry/Department and potential consultants.
Breakdown of the Rule:
- Purpose of RFP: The primary function of an RFP is to solicit technical and financial proposals from consultants for a required service.
- Target Audience: RFPs must be issued specifically to consultants who have been shortlisted, indicating a prior screening process.
- Mandatory Contents: An RFP, as per this rule, must comprehensively cover several key areas:
- A formal Letter of Invitation.
- Detailed information for consultants regarding the proposal submission procedure.
- Clear Terms of Reference (TOR).
- Eligibility and pre-qualification criteria, especially if not established during the Expression of Interest phase.
- A list of key positions whose CVs and experience will be evaluated.
- Explicit bid evaluation criteria and the selection procedure.
- Standard formats for both technical and financial proposals.
- Proposed contract terms.
- The procedure for midterm review of work progress and review of the final draft report.
Practical Example: Imagine the Ministry of Health needs a consultant to develop a national health policy. Following Rule 183, they identify and shortlist several consulting firms. Under Rule 186, the Ministry then prepares an RFP. This RFP would include a formal invitation, detailed instructions on how to submit proposals, the Terms of Reference for policy development, the required qualifications for the lead consultants, how bids will be evaluated (e.g., 70% technical, 30% financial), standard templates for their proposals, and the draft contract terms. This structured RFP ensures all shortlisted firms receive consistent information, enabling them to submit comparable and relevant proposals.
Related Provisions
Rule 186 is integral to the broader framework of procurement of services. Other related provisions include:
- Rule 185 of The General Financial Rules 2017 Preparation of Terms of Reference: This rule details the crucial step of preparing the Terms of Reference, which is a mandatory component of the RFP as per Rule 186.
- Rule 187 of The General Financial Rules 2017 Receipt and Opening of Proposals: This rule outlines the subsequent steps after the RFP is issued, focusing on how proposals are received and opened.
Learning Aids
Mnemonics
- To remember the key contents of an RFP under Rule 186, think of LITE BECST PRM: Letter of Invitation, Information to Consultants, Terms of Reference, Eligibility Criteria, Bid Evaluation, Experience (key positions), Contract Terms, Standard Formats, Technical/Financial Proposals, Proposed Contract Terms, Review (midterm/final).
Process Flowchart
Multiple Choice Questions (MCQs)
1. According to Rule 186 of the General Financial Rules, 2017, what is the primary purpose of a Request for Proposal (RFP)?
- A) To finalize contract terms without prior bids.
- B) To obtain offers from consultants for required services.
- C) To announce the completion of a project.
- D) To list all available government services.
Show Answer
Correct Answer: B) To obtain offers from consultants for required services.
2. Which of the following is NOT a mandatory component of an RFP as per Rule 186 of the General Financial Rules, 2017?
- A) Terms of Reference (TOR).
- B) A list of key positions whose CV and experience would be evaluated.
- C) The final audited financial statements of the procuring Ministry.
- D) Bid evaluation criteria and selection procedure.
Show Answer
Correct Answer: C) The final audited financial statements of the procuring Ministry.
3. To whom should the RFP be issued, according to Rule 186 of the General Financial Rules, 2017?
- A) All registered suppliers on GeM.
- B) Only to firms with prior experience in government contracts.
- C) To all interested parties who submit an Expression of Interest.
- D) To the shortlisted consultants.
Show Answer
Correct Answer: D) To the shortlisted consultants.
4. Rule 186 of the General Financial Rules, 2017, specifies that the RFP should include a procedure for what kind of review related to the work’s progress?
- A) Annual financial audit by the CAG.
- B) Midterm review of the progress of the work and review of the final draft report.
- C) Post-completion impact assessment.
- D) Review of the consultant’s internal management structure.
Show Answer
Correct Answer: B) Midterm review of the progress of the work and review of the final draft report.
5. What type of proposals does Rule 186 of the General Financial Rules, 2017, require consultants to submit in response to an RFP?
- A) Only financial proposals.
- B) Only technical proposals.
- C) Both technical and financial proposals.
- D) A letter of intent and a company profile.
Show Answer
Correct Answer: C) Both technical and financial proposals.
Frequently Asked Questions
Q1: Who is the target audience for an RFP issued under Rule 186 of the General Financial Rules, 2017?
An RFP issued under Rule 186 is specifically targeted at and issued to consultants who have been shortlisted through a prior selection process, such as an Expression of Interest.
Q2: What are the essential components that an RFP must contain as per Rule 186?
As per Rule 186, an RFP must contain a Letter of Invitation, Information to Consultants on proposal submission, Terms of Reference (TOR), eligibility and pre-qualification criteria, a list of key positions for evaluation, bid evaluation criteria, standard formats for proposals, proposed contract terms, and procedures for midterm and final report reviews.
Q3: Why is a detailed RFP important in the procurement of consulting services?
A detailed RFP, as mandated by Rule 186, is crucial for ensuring transparency, fairness, and competition in the procurement process. It provides all necessary information to potential consultants, enabling them to submit comprehensive and comparable technical and financial proposals, which ultimately helps the government achieve the best value for money.
Key Takeaways
- Rule 186 mandates a structured RFP for obtaining consulting offers from shortlisted firms.
- The RFP must include comprehensive details like Terms of Reference, eligibility, evaluation criteria, and contract terms.
- It ensures transparency and a standardized approach in the selection of consultants.
- The rule emphasizes clear communication of all procedural and contractual aspects to potential bidders.
Conclusion
Rule 186 of the General Financial Rules, 2017, is a cornerstone for effective and ethical procurement of consulting services within the government. By prescribing a detailed and standardized format for Requests for Proposals, it ensures that Ministries and Departments engage with consultants in a manner that is fair, transparent, and ultimately leads to the selection of the most competent and suitable service providers. Adherence to this rule is vital for maintaining financial propriety and achieving optimal outcomes in public service projects.