Rule 201 of The General Financial Rules 2017 Invitation of Bids
Original Rule Text
Visual Summary
For non-consulting services up to Rs. 50 lakhs.
For non-consulting services above Rs. 50 lakhs.
Use GeM and CPPP for wider reach.
Executive Summary
Rule 201 of the General Financial Rules, 2017 outlines the procedures for inviting bids for non-consulting services. It distinguishes between procurements based on their estimated value: limited tender enquiries for values up to Rupees Fifty lakhs and advertised tender enquiries for values above Rupees Fifty lakhs. The rule emphasizes scrutiny of contractors and the use of public procurement portals like GeM and CPPP for wider publicity and transparency.
In-Depth Analysis of the Rule
Rule 201 is a cornerstone for transparent and efficient procurement of non-consulting services within the General Financial Rules, 2017. It establishes a bifurcated approach to bid invitation, ensuring appropriate scrutiny and publicity based on the financial value of the service.
Breakdown of the Rule:
- Sub-rule (i) – Limited Tender Enquiry (Up to Rs. 50 Lakhs):
- Applies to non-consulting services with an estimated value up to Rupees Fifty lakhs.
- Requires Ministries/Departments to scrutinize a preliminary list of likely contractors (identified per Rule 199).
- Only prima facie eligible and capable contractors are issued limited tender enquiries.
- The number of identified contractors for limited tender must be more than three.
- Bids are invited by a specified date and time following standard practice.
- Sub-rule (ii) – Advertised Tender Enquiry (Above Rs. 50 Lakhs):
- Applies to non-consulting services with an estimated value exceeding Rupees Fifty lakhs.
- Mandates the issuance of advertisements on public procurement portals like GeM (Government e-Marketplace) and GeM-CPPP (Central Public Procurement Portal).
- Organizations with their own websites must also publish these tender enquiries there.
- Advertisements must provide the complete web address for downloading bidding documents.
Practical Example:
A government department needs to procure office cleaning services for an estimated value of Rs. 30 lakhs. According to Rule 201(i), they would identify more than three eligible cleaning contractors, issue a limited tender enquiry, and invite bids. If the estimated value was Rs. 70 lakhs, Rule 201(ii) would apply, requiring the department to advertise the tender on GeM, GeM-CPPP, and their own website, providing a link to download the bidding documents.
Related Provisions
To fully understand the context of bid invitations, consider these related rules:
- Rule 199 of The General Financial Rules, 2017 Identification of likely contractors: Details the process for identifying potential contractors.
- Rule 202 of The General Financial Rules, 2017 Late Bids: Addresses the handling of bids received after the specified deadline.
- Rule 144 of The General Financial Rules, 2017 Fundamental principles of public buying for all procurements including procurement of works: Lays down the overarching principles for all public procurement.
Learning Aids
Mnemonics:
- BIDS: Bifurcate Invitations, Display Services
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is the threshold for a limited tender enquiry for non-consulting services under Rule 201(i) of the General Financial Rules, 2017?
- A) Up to Rupees Ten lakhs
- B) Up to Rupees Twenty-five lakhs
- C) Up to Rupees Fifty lakhs
- D) Above Rupees Fifty lakhs
Show Answer
Correct Answer: C) Up to Rupees Fifty lakhs
2. According to Rule 201(i) of the General Financial Rules, 2017, what is the minimum number of contractors to be identified for issuing a limited tender enquiry?
- A) One
- B) Two
- C) Three
- D) More than three
Show Answer
Correct Answer: D) More than three
3. For non-consulting services with an estimated value above Rupees Fifty lakhs, Rule 201(ii) of the General Financial Rules, 2017 mandates advertisement on which platform(s)?
- A) Only the Ministry’s/Department’s website
- B) Only GeM
- C) GeM and GeM-CPPP
- D) Local newspapers only
Show Answer
Correct Answer: C) GeM and GeM-CPPP
4. Which of the following is a requirement for advertised tender enquiries under Rule 201(ii) of the General Financial Rules, 2017?
- A) Only physical copies of bidding documents are allowed.
- B) Advertisements must give the complete web address for downloading bidding documents.
- C) Only registered suppliers can view the advertisements.
- D) Bids must be submitted via postal mail only.
Show Answer
Correct Answer: B) Advertisements must give the complete web address for downloading bidding documents.
5. Rule 201 of the General Financial Rules, 2017 primarily deals with the invitation of bids for what type of services?
- A) Consulting services
- B) Non-consulting services
- C) Public works
- D) Goods procurement
Show Answer
Correct Answer: B) Non-consulting services
Frequently Asked Questions
What is the primary purpose of Rule 201 of the General Financial Rules, 2017?
Rule 201 primarily governs the procedures for inviting bids for non-consulting services, ensuring transparency and competition in government procurement.
How does Rule 201 differentiate between types of bid invitations?
It differentiates based on the estimated value of the non-consulting service: limited tender enquiries for values up to Rupees Fifty lakhs and advertised tender enquiries for values above Rupees Fifty lakhs.
Are government departments required to use online portals for bid invitations under Rule 201?
Yes, for non-consulting services with an estimated value above Rupees Fifty lakhs, advertisement on public procurement portals like GeM and GeM-CPPP is mandatory.
Key Takeaways
- Rule 201 establishes clear thresholds for inviting bids for non-consulting services.
- Limited tenders are used for values up to Rs. 50 lakhs, requiring scrutiny of at least three contractors.
- Advertised tenders are mandatory for values above Rs. 50 lakhs, utilizing public portals like GeM and GeM-CPPP for transparency.
- The rule promotes fair competition and accessibility of bidding information in government procurement.
Conclusion
Rule 201 of the General Financial Rules, 2017 is vital for ensuring a structured, transparent, and competitive process for procuring non-consulting services. By delineating clear procedures based on financial thresholds and mandating the use of public platforms, it upholds principles of financial propriety and public accountability in government procurement.