Rule 183 of The General Financial Rules 2017 Identification of Likely Sources
Original Rule Text
( i ) Where the estimated cost of the consulting service is up to [Rupees Fifty lakhs], preparation of a long list of potential consultants may be done on the basis of formal or informal enquiries from other Ministries or Departments or Organisations involved in similar activities, Chambers of Commerce & Industry, Association of consultancy firms etc.
( ii ) Where the estimated cost of the consulting services is above [Rupees Fifty lakhs], in addition to (i) above, an enquiry for seeking ‘Expression of Interest’ from consultants should be published on [GeM as well as on GeM- Central Public Procurement Portal (GeM- CPPP)]. An organisation having its own website should also publish all its advertised tender enquiries on the website. Enquiry for seeking Expression of Interest should include in brief, the broad scope of work or service, inputs to be provided by the Ministry or Department, eligibility and the pre- qualification criteria to be met by the consultant(s) and consultant’s past experience in similar work or service. The consultants may also be asked to send their comments on the objectives and scope of the work or service projected in the enquiry. Adequate time should be allowed for getting responses from interested consultants.
Visual Summary
Different procedures based on estimated cost of consulting service (up to/above Rs. 50 lakhs).
For costs up to Rs. 50 lakhs, use informal enquiries from other Ministries/Organisations.
For costs above Rs. 50 lakhs, publish Expression of Interest on GeM-CPPP and websites.
Executive Summary
Rule 183 of the General Financial Rules, 2017 outlines the process for identifying potential consultants based on the estimated cost of the consulting service. For services with an estimated cost up to Rupees Fifty Lakhs, ministries can use formal or informal enquiries. For services exceeding this amount, a formal ‘Expression of Interest’ must be published on the Government e-Marketplace (GeM) and the organization’s website, detailing the broad scope, eligibility, and required experience to ensure a transparent and competitive selection process.
In-Depth Analysis of the Rule
Rule 183 is a crucial component of the General Financial Rules, 2017, establishing a tiered approach to identifying suitable consultants for government projects. This rule aims to balance efficiency with transparency and competition, ensuring that the method of sourcing is proportionate to the financial value of the consulting service.
Breakdown of the Rule:
- For Estimated Cost up to Rupees Fifty Lakhs: Ministries or Departments can prepare a long list of potential consultants through formal or informal enquiries. These enquiries can be directed to other Ministries, Departments, Organisations involved in similar activities, Chambers of Commerce & Industry, or Associations of consultancy firms. This approach allows for a more flexible and less formal process for smaller-value engagements.
- For Estimated Cost above Rupees Fifty Lakhs: In addition to the methods mentioned above, a formal ‘Expression of Interest’ (EOI) must be publicly published. This EOI should appear on the Government e-Marketplace (GeM) and the GeM-Central Public Procurement Portal (GeM-CPPP). Any organization with its own website must also publish these advertised tender enquiries there. The EOI must briefly outline the broad scope of work, the objectives, inputs to be provided by the Ministry or Department, eligibility and pre-qualification criteria for consultants, and their past experience in similar work. Adequate time must be provided for interested consultants to respond. This ensures wide publicity and a competitive bidding environment for higher-value services.
Practical Example:
Imagine the Ministry of Health needs a consultant to develop a new public awareness campaign. If the estimated cost for this service is Rs. 30 lakhs, the Ministry can reach out to other government departments that have run similar campaigns, or consult industry associations for recommendations. However, if the estimated cost is Rs. 70 lakhs, the Ministry must issue a formal ‘Expression of Interest’ on GeM-CPPP and its own website. This EOI would specify the campaign’s objectives, the expected deliverables, the qualifications required from consulting firms (e.g., experience in public health campaigns, financial stability), and a deadline for submissions. This ensures that a wide range of qualified consultants can apply, promoting transparency and competition.
Related Provisions
Understanding Rule 183 is enhanced by examining related provisions within the General Financial Rules, 2017:
- Rule 182 of The General Financial Rules 2017 Estimating Reasonable Expenditure: This rule precedes Rule 183 and deals with the process of estimating the expenditure for consulting services, which directly influences the identification method chosen under Rule 183.
- Rule 184 of The General Financial Rules 2017 Short Listing of Consultants: Following the identification of likely sources, Rule 184 details the subsequent step of shortlisting consultants based on the responses received, forming a continuous procurement process.
Learning Aids
Mnemonics:
- Sources Cost Money, EOI for Big Projects: Helps remember that identifying sources (Rule 183) depends on the cost, with Expression of Interest (EOI) being for larger projects.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 183 of the General Financial Rules, 2017, for a consulting service with an estimated cost up to Rupees Fifty Lakhs, how should potential consultants be identified?
- A) Through a mandatory global tender enquiry.
- B) By publishing an Expression of Interest on GeM-CPPP.
- C) Based on formal or informal enquiries from other Ministries or Organisations.
- D) By direct nomination without any prior enquiry.
Show Answer
Correct Answer: C
2. Under Rule 183 of the General Financial Rules, 2017, when the estimated cost of consulting services is above Rupees Fifty Lakhs, what additional step is required for identifying likely sources?
- A) Only informal enquiries are sufficient.
- B) A formal ‘Expression of Interest’ must be published on GeM-CPPP and the organization’s website.
- C) Direct negotiation with a single consultant.
- D) A limited tender enquiry to less than three firms.
Show Answer
Correct Answer: B
3. Which of the following details should be included in an ‘Expression of Interest’ published under Rule 183 of the General Financial Rules, 2017 for high-value consulting services?
- A) Only the final quoted price.
- B) The broad scope of work, eligibility, and pre-qualification criteria.
- C) A list of all previous projects undertaken by the Ministry.
- D) The personal details of all Ministry officials involved.
Show Answer
Correct Answer: B
4. Rule 183 of the General Financial Rules, 2017 emphasizes allowing adequate time for responses when seeking ‘Expression of Interest’ from consultants. What is the primary reason for this?
- A) To discourage international bidders.
- B) To ensure a fair and competitive process.
- C) To limit the number of potential consultants.
- D) To reduce the administrative burden on the Ministry.
Show Answer
Correct Answer: B
5. For consulting services with an estimated cost up to Rupees Fifty Lakhs, Rule 183 of the General Financial Rules, 2017 suggests identifying likely sources through informal enquiries from which of the following?
- A) Only international consultancy firms.
- B) Chambers of Commerce & Industry.
- C) Only government-owned public sector undertakings.
- D) Only individual retired government servants.
Show Answer
Correct Answer: B
Frequently Asked Questions
What is the primary distinction in identifying consulting service sources based on cost under Rule 183 of the General Financial Rules, 2017?
The primary distinction is the estimated cost. For services up to Rupees Fifty Lakhs, informal enquiries are sufficient. For services above this amount, a formal ‘Expression of Interest’ must be publicly advertised.
Where should an ‘Expression of Interest’ for high-value consulting services be published according to Rule 183 of the General Financial Rules, 2017?
It should be published on the Government e-Marketplace (GeM) as well as on the GeM-Central Public Procurement Portal (GeM-CPPP). Additionally, the organization’s own website should also publish these enquiries.
Key Takeaways
- Rule 183 of the General Financial Rules, 2017 categorizes consultant identification based on service cost.
- Lower value services (up to Rs. 50 lakhs) allow for informal enquiries from various sources.
- Higher value services (above Rs. 50 lakhs) require public ‘Expression of Interest’ on GeM-CPPP and the organization’s website.
- EOI documents must clearly define the broad scope, eligibility, and experience requirements to ensure transparency.
Conclusion
Rule 183 of the General Financial Rules, 2017 provides a structured and transparent framework for identifying potential consultants, ensuring that the method of sourcing is appropriate to the value and complexity of the service required. By differentiating between informal enquiries for smaller projects and formal ‘Expression of Interest’ for larger ones, it promotes efficiency, fairness, and competition in the public procurement of consulting services, ultimately contributing to better project outcomes and responsible use of public funds.