Rule 158 of The General Financial Rules 2017 Purchase of Goods by Obtaining Bids
Original Rule Text
Visual Summary
Outlines five standard methods for obtaining bids.
Applies to all procurements except those under Rules 154 and 155.
Procurement must adhere to powers outlined in Rule 140.
Executive Summary
Rule 158 of The General Financial Rules, 2017, mandates that Ministries and Departments must follow standard bidding methods for procuring goods, specifically excluding cases covered by Rules 154 (purchase without quotation) and 155 (purchase by purchase committee). The rule outlines five primary methods for obtaining bids: Advertised Tender Enquiry, Limited Tender Enquiry, Two-Stage Bidding, Single Tender Enquiry, and Electronic Reverse Auctions. This ensures transparency, competition, and efficiency in government procurement processes, aligning with the broader financial powers delegated under Rule 140.
In-Depth Analysis of the Rule
Rule 158 serves as a cornerstone for competitive procurement within the Indian government, ensuring that public funds are utilized judiciously and transparently. It outlines the primary mechanisms through which Ministries and Departments are expected to acquire goods, emphasizing a structured approach to solicit offers from potential suppliers.
Breakdown of the Rule
- Scope of Application: The rule applies broadly to the procurement of goods by Ministries and Departments, but explicitly carves out exceptions for purchases made under Rule 154 (without quotation) and Rule 155 (through a purchase committee). This indicates a tiered approach to procurement, where smaller or specific purchases may follow simplified procedures.
- Governing Powers: All procurement activities under Rule 158 are to be conducted within the framework of powers delegated under Rule 140, which pertains to the fundamental principles of public buying. This ensures consistency and adherence to overarching financial propriety standards.
- Standard Bidding Methods: The rule specifies five standard methods for obtaining bids:
- Advertised Tender Enquiry: Typically used for high-value procurements, ensuring wide publicity.
- Limited Tender Enquiry: Employed when the estimated value is lower or sources are limited, inviting bids from a pre-selected list of suppliers.
- Two-Stage Bidding: Suitable for complex procurements where technical specifications need refinement through initial bids before financial offers are sought.
- Single Tender Enquiry: Used in exceptional circumstances, such as proprietary items or emergencies, where only one source is viable.
- Electronic Reverse Auctions: A dynamic online bidding process where suppliers compete by offering progressively lower prices.
Practical Example
Imagine the Ministry of Health and Family Welfare needs to procure a large quantity of specialized medical equipment for government hospitals. Since the estimated value is high and the equipment is complex, they would likely opt for a Two-Stage Bidding process under Rule 158. First, they would invite technical bids to finalize specifications and ensure compliance with medical standards. After evaluating and shortlisting technically compliant bidders, they would then invite financial bids from only those qualified suppliers. This ensures that the government acquires high-quality, suitable equipment at a competitive price, adhering to the principles of transparency and efficiency.
Related Provisions
Understanding Rule 158 is enhanced by examining related provisions:
- Rule 154 of The General Financial Rules, 2017: Purchase of Goods Without Quotation: This rule specifies conditions for direct purchases without inviting formal quotations, which are explicitly excluded from Rule 158’s scope.
- Rule 155 of The General Financial Rules, 2017: Purchase of Goods by Purchase Committee: Details the process for purchases made through a committee, another exception to the general bidding methods of Rule 158.
- Rule 140 of The General Financial Rules, 2017: Fundamental Principles of Public Buying: Provides the overarching principles of efficiency, economy, and transparency that govern all procurement, including those under Rule 158.
Learning Aids
Mnemonics
- BIDS: Bidding Involves Diverse Strategies (Advertised, Limited, Two-Stage, Single, Electronic Reverse).
Process Flowchart
Multiple Choice Questions
1. Which of the following procurement methods is NOT explicitly listed under Rule 158 of the General Financial Rules, 2017, for obtaining bids?
- A) Advertised Tender Enquiry
- B) Limited Tender Enquiry
- C) Direct Purchase from GeM
- D) Electronic Reverse Auctions
Show Answer
Correct Answer: C) Direct Purchase from GeM
2. Rule 158 of the General Financial Rules, 2017, states that Ministries or Departments shall procure goods by obtaining bids, EXCEPT in cases covered under which other rules?
- A) Rule 140 and Rule 149
- B) Rule 154 and Rule 155
- C) Rule 161 and Rule 162
- D) Rule 170 and Rule 171
Show Answer
Correct Answer: B) Rule 154 and Rule 155
3. For which type of bidding process does Rule 158 of the General Financial Rules, 2017, allow for an initial technical evaluation before financial bids are opened?
- A) Single Tender Enquiry
- B) Limited Tender Enquiry
- C) Two-Stage Bidding
- D) Advertised Tender Enquiry
Show Answer
Correct Answer: C) Two-Stage Bidding
4. Under Rule 158 of the General Financial Rules, 2017, all procurement of goods by obtaining bids must adhere to the powers referred to in which other rule?
- A) Rule 133
- B) Rule 140
- C) Rule 142
- D) Rule 150
Show Answer
Correct Answer: B) Rule 140
5. Which of the following is a method of obtaining bids specified in Rule 158 of the General Financial Rules, 2017, that involves suppliers competing by offering progressively lower prices online?
- A) Advertised Tender Enquiry
- B) Limited Tender Enquiry
- C) Single Tender Enquiry
- D) Electronic Reverse Auctions
Show Answer
Correct Answer: D) Electronic Reverse Auctions
Frequently Asked Questions
Q: What are the primary methods for obtaining bids under Rule 158 of the General Financial Rules, 2017?
A: Rule 158 lists five standard methods: Advertised Tender Enquiry, Limited Tender Enquiry, Two-Stage Bidding, Single Tender Enquiry, and Electronic Reverse Auctions.
Q: Does Rule 158 of the General Financial Rules, 2017, apply to all government procurements?
A: No, Rule 158 explicitly excludes procurements covered under Rule 154 (purchase without quotation) and Rule 155 (purchase by purchase committee).
Q: What is the significance of Rule 140 in relation to Rule 158 of the General Financial Rules, 2017?
A: Rule 140 outlines the fundamental principles of public buying, emphasizing efficiency, economy, and transparency. All procurement methods under Rule 158 must be exercised in accordance with the powers and principles laid down in Rule 140.
Key Takeaways
- Rule 158 mandates competitive bidding for most government procurements.
- It specifies five distinct methods: Advertised, Limited, Two-Stage, Single, and Electronic Reverse Auctions.
- Exceptions exist for small-value purchases (Rule 154) and committee-based procurements (Rule 155).
- All bidding processes must align with the fundamental principles of public buying outlined in Rule 140.
Conclusion
Rule 158 of The General Financial Rules, 2017, is vital for ensuring fair, transparent, and economically sound procurement practices across government Ministries and Departments. By detailing various bidding methods and their appropriate application, it provides a structured framework that promotes competition and safeguards public funds, while also acknowledging specific scenarios where alternative procurement approaches are permissible.