Rule 199 of The General Financial Rules 2017 Identification of Likely Contractors
Original Rule Text
Visual Summary
To create a list of suitable contractors for non-consulting services.
Utilize inquiries, directories, and online resources for identification.
The Ministry or Department is responsible for preparing the list.
Executive Summary
Rule 199 of the General Financial Rules, 2017, outlines the procedure for Ministries and Departments to identify potential contractors for non-consulting services. This involves creating a comprehensive list based on various sources such as formal and informal inquiries from other government bodies, industry directories like ‘Yellow pages’, trade journals, and websites.
In-Depth Analysis of the Rule
Rule 199 serves as a foundational step in the procurement of non-consulting services, ensuring that government entities have a robust and diverse pool of potential contractors. This proactive approach is critical for fostering competition, achieving value for money, and maintaining transparency in government contracts.
Breakdown of the Rule
- Mandate for List Preparation: The rule explicitly states that Ministries or Departments “should prepare a list” of likely and potential contractors. This is not merely a suggestion but a directive to establish a systematic approach to contractor identification.
- Sources of Information: It specifies several avenues for gathering information:
- Formal or Informal Enquiries: This includes reaching out to other Ministries, Departments, and Organisations involved in similar activities, leveraging existing government knowledge and experience.
- ‘Yellow Pages’ and Trade Journals: These traditional directories and publications provide a broad overview of businesses operating in specific sectors, offering a starting point for identifying potential suppliers.
- Websites: The inclusion of “web site etc.” acknowledges the importance of digital presence and online research in modern procurement, allowing for broader and more up-to-date information gathering.
- Purpose of the List: The objective is to identify “likely and potential contractors,” implying a focus on both current capabilities and future potential, ensuring that the government can engage with a wide range of qualified entities.
Practical Example
Imagine the Ministry of Health and Family Welfare needs to outsource the maintenance of its medical equipment across various hospitals. Following Rule 199, the Ministry would initiate a process to identify potential maintenance contractors. This would involve:
- Contacting other Ministries (e.g., Defence, Railways) to inquire about their medical equipment maintenance contractors.
- Consulting industry-specific trade journals and online directories for companies specializing in medical equipment servicing.
- Searching for companies with relevant certifications and experience on their websites.
This comprehensive approach ensures that the Ministry builds a robust list of qualified contractors before proceeding to the tender stage, leading to better service quality and competitive pricing.
Related Provisions
Rule 199 is part of a broader framework for procurement of services. Other relevant rules include:
- Rule 197 of The General Financial Rules, 2017 Non-Consulting Service Definition: Defines what constitutes a non-consulting service, which is the subject of Rule 199.
- Rule 198 of The General Financial Rules, 2017 Procurement of Non-Consulting Services: Lays down the general guidelines for procuring non-consulting services, of which Rule 199 is a part.
- Rule 200 of The General Financial Rules, 2017 Preparation of Tender Enquiry: Follows Rule 199, detailing the next step of preparing tender documents after contractors have been identified.
Learning Aids
Mnemonics
- “I.D.E.A.S.” for Identification, Departments, Enquiries, Activities, Sources (Yellow Pages, Trade Journals, Websites).
Process Flowchart
Multiple Choice Questions
1. According to Rule 199 of the General Financial Rules, 2017, what is the primary purpose of preparing a list of likely contractors?
- A) To finalize tender documents.
- B) To identify potential suppliers for non-consulting services.
- C) To assess the financial health of existing contractors.
- D) To award contracts directly without bidding.
Show Answer
Correct Answer: B) To identify potential suppliers for non-consulting services.
2. Which of the following is NOT explicitly mentioned as a source for identifying contractors under Rule 199 of the General Financial Rules, 2017?
- A) Formal enquiries from other Ministries.
- B) Scrutiny of ‘Yellow pages’.
- C) Direct recommendations from political officials.
- D) Trade journals.
Show Answer
Correct Answer: C) Direct recommendations from political officials.
3. Rule 199 of the General Financial Rules, 2017, falls under which main chapter of the rules?
- A) Budget Formulation and Implementation.
- B) Procurement of Goods and Services.
- C) Government Accounts.
- D) Grants-in-Aid and Loans.
Show Answer
Correct Answer: B) Procurement of Goods and Services.
4. The identification process described in Rule 199 of the General Financial Rules, 2017, is intended for which type of services?
- A) Consulting services only.
- B) Goods procurement only.
- C) Non-consulting services.
- D) Works contracts only.
Show Answer
Correct Answer: C) Non-consulting services.
5. What kind of inquiries are Ministries or Departments encouraged to make when identifying contractors under Rule 199 of the General Financial Rules, 2017?
- A) Only formal, written inquiries.
- B) Only informal, verbal inquiries.
- C) Both formal and informal inquiries.
- D) Inquiries limited to their own department.
Show Answer
Correct Answer: C) Both formal and informal inquiries.
Frequently Asked Questions
Q1: What is the main objective of Rule 199 of the General Financial Rules, 2017?
A1: The main objective is to guide Ministries and Departments in preparing a comprehensive list of potential contractors for non-consulting services, ensuring a broad and suitable pool for future procurement.
Q2: What sources should Ministries consult to identify contractors under Rule 199 of the General Financial Rules, 2017?
A2: They should consult formal or informal inquiries from other government bodies, ‘Yellow pages’, trade journals, and various websites.
Q3: Why is it important to identify a wide range of contractors as per Rule 199 of the General Financial Rules, 2017?
A3: Identifying a wide range of contractors promotes competition, helps achieve better value for money, and ensures transparency in the procurement process for non-consulting services.
Key Takeaways
- Rule 199 mandates Ministries/Departments to proactively identify potential contractors for non-consulting services.
- The identification process should be comprehensive, utilizing both traditional and digital sources like inquiries, trade journals, and websites.
- This rule is a crucial preliminary step to ensure competitive and transparent procurement, leading to efficient service delivery.
- It emphasizes leveraging existing knowledge within government and external market information to build a robust contractor database.
Conclusion
Rule 199 of the General Financial Rules, 2017, underpins the integrity and efficiency of government procurement by ensuring that a diverse and capable pool of contractors is identified for non-consulting services. By systematically gathering information from various sources, Ministries and Departments can lay a strong foundation for fair competition and optimal resource utilization, ultimately benefiting public service delivery.