Rule 177 of The General Financial Rules 2017 Consulting Service Definition
Original Rule Text
Visual Summary
Intellectual, project-specific processes.
Goods, works, or retired government staff.
Professional, intellectual, training, advisory.
Executive Summary
Rule 177 of The General Financial Rules, 2017 defines ‘Consulting Service’ as a procurement category primarily involving non-physical, intellectual, and project-specific processes where outcomes can vary between consultants. It explicitly excludes goods, works, and the direct engagement of retired government servants, while encompassing professional, intellectual, training, and advisory services.
In-Depth Analysis of the Rule
Rule 177 provides a foundational definition for ‘Consulting Service’ within the framework of the General Financial Rules, 2017. This distinction is crucial for proper classification and application of procurement procedures, as consulting services differ significantly from the procurement of physical goods or execution of works.
Breakdown of the Rule
- Core Nature: Consulting services are characterized by non-physical, project-specific, intellectual, and procedural processes. The key aspect is that the outcomes or deliverables can vary depending on the consultant engaged, highlighting the subjective and expert-driven nature of these services.
- Distinction from Other Services: The rule explicitly differentiates consulting services from ‘Non-Consultancy Services’, which typically involve physical, measurable deliverables with clearly identifiable performance standards.
- Exclusions: The definition specifically excludes ‘goods’ and ‘works’. It also makes a crucial exclusion for the ‘direct engagement of a retired Government servant’, implying that such engagements fall under a different regulatory framework.
- Inclusions: The scope of consulting services includes professional, intellectual, training, and advisory services. It also covers any other service that a procuring entity may classify or declare as a consulting service.
Practical Example
A government department needs to develop a new policy framework for sustainable urban development. Engaging an urban planning firm to conduct research, provide expert recommendations, and draft policy documents would fall under ‘Consulting Service’ as per Rule 177. This is because the service involves intellectual processes, the output (policy recommendations) is non-physical, and the specific approach and quality of recommendations might vary between different consulting firms. Conversely, hiring a contractor to build a new government office building would be ‘works’, and purchasing office furniture would be ‘goods’, neither of which are consulting services.
Related Provisions
Understanding Rule 177 is enhanced by considering the following related provisions in The General Financial Rules, 2017:
- Rule 143 of The General Financial Rules 2017 Definition of Goods: Provides the definition of ‘goods’, which is explicitly excluded from consulting services.
- Rule 197 of The General Financial Rules 2017 Non-Consulting Service Definition: Defines ‘Non-Consulting Service’, offering a contrast to consulting services.
- Rule 180 of The General Financial Rules 2017 Identification of Services by Consultants: Outlines the situations where engagement of consultants may be resorted to.
Learning Aids
Mnemonics
- C-I-T-A-P: Consulting is Intellectual, Training, Advisory, Project-specific. (Helps recall the types and nature of services).
Process Flowchart
Multiple Choice Questions (MCQs)
1. What is the primary characteristic of a ‘Consulting Service’ as defined in Rule 177 of The General Financial Rules, 2017?
- A) Involves physical deliverables and measurable outcomes.
- B) Primarily non-physical, intellectual, and project-specific processes.
- C) Exclusively relates to the procurement of goods.
- D) Always involves the direct engagement of retired government servants.
Show Answer
Correct Answer: B
2. According to Rule 177 of The General Financial Rules, 2017, which of the following is explicitly *excluded* from the definition of ‘Consulting Service’?
- A) Professional services.
- B) Training services.
- C) Direct engagement of a retired Government servant.
- D) Advisory services.
Show Answer
Correct Answer: C
3. In the context of Rule 177 of The General Financial Rules, 2017, what distinguishes ‘Consulting Service’ from ‘Non-Consultancy Services’?
- A) Consulting services have fixed, predictable outcomes.
- B) Non-consultancy services involve varying outcomes.
- C) Outcomes/deliverables in consulting services would vary from one consultant to another.
- D) Non-consultancy services are always incidental to goods.
Show Answer
Correct Answer: C
4. Which of these types of services is *included* in the definition of ‘Consulting Service’ under Rule 177 of The General Financial Rules, 2017?
- A) Procurement of industrial plant.
- B) Civil works construction.
- C) Intellectual processes.
- D) Purchase of livestock.
Show Answer
Correct Answer: C
5. If a service is classified as ‘Consulting Service’ under Rule 177 of The General Financial Rules, 2017, what is a key implication regarding its deliverables?
- A) They are always physical and tangible.
- B) They are always identical regardless of the consultant.
- C) They are primarily non-physical, with outcomes varying by consultant.
- D) They are incidental or consequential to the supply of goods.
Show Answer
Correct Answer: C
Frequently Asked Questions
Q: What is the core difference between ‘Consulting Service’ and ‘Non-Consultancy Service’ under the General Financial Rules, 2017?
A: Rule 177 defines ‘Consulting Service’ as involving primarily non-physical, intellectual processes where outcomes vary by consultant, whereas ‘Non-Consultancy Services’ (Rule 197) typically have physical, measurable deliverables with clearly identifiable performance standards.
Q: Does Rule 177 of The General Financial Rules, 2017 allow for the direct engagement of retired government servants as consultants?
A: No, Rule 177 explicitly states that ‘Consulting Service’ does not include the direct engagement of a retired Government servant. Such engagements would fall under different provisions.
Q: Can the procurement of goods or works be classified as a ‘Consulting Service’ according to Rule 177 of The General Financial Rules, 2017?
A: No, Rule 177 clearly distinguishes ‘Consulting Service’ from ‘goods’ or ‘works’, except for those incidental or consequential to the service itself.
Key Takeaways
- Rule 177 defines ‘Consulting Service’ as non-physical, intellectual, project-specific processes with variable outcomes.
- It explicitly excludes goods, works, and direct engagement of retired government servants.
- The definition covers professional, intellectual, training, and advisory services.
- Proper classification under this rule is essential for applying correct procurement procedures.
Conclusion
Rule 177 serves as a critical definitional cornerstone within The General Financial Rules, 2017, ensuring that the unique nature of consulting services—characterized by intellectual input and variable outcomes—is appropriately recognized and managed. This clear demarcation helps in applying tailored procurement strategies, fostering transparency, and achieving value for money in government engagements that require specialized expertise.