Rule 154 of The General Financial Rules 2017 Purchase of Goods Without Quotation
Original Rule Text
Visual Summary
Allows direct purchase of goods without formal bids.
Up to Rs. 50,000 on each occasion.
Competent authority must certify quality, price, and supplier reliability.
Executive Summary
Rule 154 of the General Financial Rules, 2017, provides a simplified procedure for the direct purchase of goods without inviting formal quotations or bids. This rule applies when a specific item is not available on the Government e-Marketplace (GeM) portal. It permits purchases up to a value of Rs. 50,000 on each occasion, provided the competent authority records a certificate confirming the goods’ requisite quality, specification, reasonable price, and the supplier’s reliability. This provision aims to streamline minor procurements while ensuring accountability.
In-Depth Analysis of the Rule
Rule 154 outlines a specific exception to the general procurement procedures, allowing government entities to make small-value purchases directly. This rule is particularly relevant for urgent or minor requirements where the administrative burden of a full tendering process would be disproportionate to the value of the goods. It balances the need for efficiency with the imperative of financial propriety through a mandatory certification process.
Breakdown of the Rule
- Applicability: This rule is specifically for situations where the required item is not available on the GeM portal, which is the primary platform for common use goods and services.
- Monetary Limit: A purchase can be made under this rule if its value does not exceed Rs. 50,000 (Rupees fifty thousand) on any single occasion. This limit ensures that the simplified procedure is used only for relatively minor procurements.
- Procedure: Instead of inviting quotations or bids, the purchase is made directly.
- Mandatory Certification: The most critical aspect is the requirement for the competent authority to record a certificate. This certificate must explicitly state:
- Personal satisfaction with the goods’ quality and specification.
- Confirmation that the goods were purchased from a reliable supplier.
- Assurance that the price paid is reasonable.
- Purpose: The rule aims to facilitate quick and efficient procurement of low-value items, reducing bureaucratic delays that might otherwise impede day-to-day operations.
Practical Example
Imagine a government department needs a specialized software license costing Rs. 45,000, which is not available on the GeM portal. Under Rule 154 of the General Financial Rules, 2017, the competent authority in the department can directly purchase this license from a known, reliable vendor. Before making the purchase, the authority must record a certificate confirming that the software meets the required specifications, the vendor is reliable, and the price is reasonable compared to market rates for similar licenses. This avoids the lengthy process of inviting bids for a relatively small, specialized purchase.
Related Provisions
Understanding Rule 154 is enhanced by examining other rules governing procurement and financial management:
- Rule 144 of The General Financial Rules, 2017 Fundamental Principles of Public Buying: Outlines the core tenets of public procurement, emphasizing efficiency, economy, and transparency.
- Rule 149 of The General Financial Rules, 2017 Government e-Market place GeM: Mandates procurement through GeM for available goods and services, making Rule 154 an exception.
- Rule 155 of The General Financial Rules, 2017 Purchase of Goods by Purchase Committee: Details procurement for values above Rs. 50,000 but up to Rs. 5,00,000 through a committee.
Learning Aids
Mnemonics
- Price Under Quotation Certification: Helps remember the key elements: Purchase, Up to Rs. 50K, Quotation not needed, Certification required.
Process Flowchart
Multiple Choice Questions
1. Under Rule 154 of the General Financial Rules, 2017, what is the maximum monetary limit for purchasing goods without inviting quotations or bids?
- A) Rs. 10,000
- B) Rs. 25,000
- C) Rs. 50,000
- D) Rs. 1,00,000
Show Answer
Correct Answer: C) Rs. 50,000
2. Rule 154 of the General Financial Rules, 2017, applies to purchases when the item is:
- A) Available on the GeM portal.
- B) Not available on the GeM portal.
- C) Purchased through a Purchase Committee.
- D) Valued above Rs. 50,000.
Show Answer
Correct Answer: B) Not available on the GeM portal.
3. What must the competent authority record when making a purchase under Rule 154 of the General Financial Rules, 2017?
- A) A detailed market survey report.
- B) A certificate of personal satisfaction regarding quality, price, and supplier reliability.
- C) The reasons for not using the GeM portal.
- D) An approval from the Ministry of Finance.
Show Answer
Correct Answer: B) A certificate of personal satisfaction regarding quality, price, and supplier reliability.
4. Which of the following is NOT a required element of the certificate under Rule 154 of the General Financial Rules, 2017?
- A) Goods are of requisite quality and specification.
- B) Goods were purchased from a reliable supplier.
- C) The purchase was approved by a purchase committee.
- D) The price is reasonable.
Show Answer
Correct Answer: C) The purchase was approved by a purchase committee.
5. What is the primary condition for invoking Rule 154 of the General Financial Rules, 2017, for a purchase?
- A) The goods are urgently required.
- B) The goods are not available on the GeM portal.
- C) The supplier offers a significant discount.
- D) The purchase is for a new service.
Show Answer
Correct Answer: B) The goods are not available on the GeM portal.
Frequently Asked Questions
Q1: Can Rule 154 be used for any purchase up to Rs. 50,000?
No, Rule 154 of the General Financial Rules, 2017, specifically states that it applies only “In case a certain item is not available on GeM portal”. If the item is available on GeM, it must be procured through GeM as per Rule 149.
Q2: What is the purpose of the certificate required under Rule 154?
The certificate, to be recorded by the competent authority, serves as a crucial internal control mechanism. It ensures accountability by requiring the authority to personally confirm the goods’ quality, adherence to specifications, reasonable price, and the supplier’s reliability, even in the absence of a formal bidding process.
Q3: Does Rule 154 allow for repeated purchases of the same item from the same supplier?
Rule 154 permits purchases “on each occasion” up to the specified limit. While it doesn’t explicitly prohibit repeated purchases, the spirit of GFRs emphasizes competition and value for money. For recurring needs, departments should consider if the item can be made available on GeM or if a more competitive procurement method (like a limited tender if the total annual value exceeds Rs. 50,000) would be more appropriate, aligning with the fundamental principles of public buying (Rule 144).
Key Takeaways
- Rule 154 facilitates direct procurement of goods not on GeM.
- The monetary limit for such purchases is Rs. 50,000 per occasion.
- A mandatory certificate from the competent authority ensures quality, reasonable price, and supplier reliability.
- This rule balances procurement efficiency for small values with accountability.
Conclusion
Rule 154 of the General Financial Rules, 2017, is a vital provision for agile government operations, enabling swift procurement of low-value, non-GeM items. Its emphasis on a certifying authority ensures that even simplified processes maintain integrity and fiscal prudence, preventing misuse while promoting administrative efficiency. Adherence to its conditions is crucial for transparent and accountable public spending.