Rules

Store Purchase Rules Contained in Appendix 14 to Punjab Financial Rules, Vol. II issued vide Finance Department. Notification No. 5630-4 FD H-61 Date 23.8.61 as Amended up to date.

Procedure and Rules for the purchase of stores by all Departments and offices of the Government of Haryana.

Preamble: The main feature of these rules consists in the assertion of a definite preference for stores produced and manufactured (wholly or partially in India, in general, and the) Haryana (in particular) and of the utilization of the agency of the Haryana Directorate of Supplies and Disposals in respect of stores by all departments of the State of Haryana.

The departments of State shall go in for products (of-cottage and small industries of the State of Punjab in preference to the manufactured goods of large-scale industries of equal standard even if the price of the former is higher but subject to a limitless may be fixed by the Government from time to time) The first preference shall be extended to the products of Government-owned industries carried in the Government Work Centers, Industrial Cooperative Societies, Jails, Reformatory Settlements and Industrial Institutions. And Schools in Haryana. ((iii) For the development of Industries to the utmost extent, the following order of preference shall be maintained consistent with economy and efficiency

In the case of raw material

Raw material produced in Haryana shall be purchased in preference to that produced in other States of India
Raw material produced in other States of India shall be purchased in preference to imported/ material

In the case of manufactured goods

The products of cottage and small- scale industries of Haryana shall be purchased in preference to the products of cottage and small-scale Industries of other States and the products of large-scale industries
Articles manufactured in Haryana shall be purchased in preference to articles manufactured in other States of India
Articles manufactured in other States of India shall be purchased in preference to imported goods
Articles of foreign manufacture held in stock in India shall be purchased in preference to items to be imported
Articles manufactured abroad shall be imported in special cases only, when suitable Indian Products are not available
In the/case of articles manufactured abroad which have to be im-ported, preference will be given to the Commonwealth Countries

In case of goods manufactured in India―Care to be taken to purchase

Articles manufactured in India from raw material produced in India in preference to articles manufactured from imported materials
Articles wholly or partially manufactured in India from imported material in preference to imported goods

In pursuance of this policy the following rules are prescribed and except in the case of those stores and articles for the purchase of which special orders are issued by the Punjab Government, these rules shall be applicable to all purchases of stores made through the Directorate of Supplies and Disposals, Haryana and to all purchases of stores made by the Heads of Departments and other officers

Rule 1

All articles covered under the definition of stores shall be purchased through the Directorate of Supplies and Disposals, Haryana, except where otherwise provided in these rules, or elsewhere.

Rule 2

The purchase of country-made machinery, imported machinery and equipment and all other stores available ex-stock in India shall be made through the * Directorate of Supplies and Disposals, Haryana. Where value of machinery or stores exceeds Rs. 2 lacs and it is necessarily of imported origin, the tenders shall be invited through the Director-General of Supplies and Disposals.

Rule 3

The indents on the Directorate of Supplies and Disposals, Haryana, shall be placed as soon as allotment of funds is received and not held back till the, close of financial year when there is always a great rush of indents which possibly cannot be coped with by the Directorate of Supplies and Disposals, Haryana, Indents received after 5th February of each year shall not be entertained by the Directorate for arranging supply within the current financial year as it ordinarily takes 6/8 weeks to finalize a purchase case.

Rule 4

Indents with complete specifications and drawings in accordance with which the stores are required shall be placed with Directorate of Supplies and Disposals, Haryana. If no specifications or drawings exist, the indenting Officer shall indicate if stores of trade pattern are acceptable In case of uncommon items two approved samples or pattern shall be furnished for guidance. A reference to previous supply shall be made when the same stores are required again but in no case shall particular make or brand be insisted upon, as this restricts competition to the disadvantage of buying departments.

Rule 5

The Heads of Departments shall consolidate their normal and (recurring requirements of stores of materials and place indents on the Director Supplies and Disposals in a consolidated form, but categorized as ‘stores’ as in Annexure-I. In emergent cases direct indents from subordinate Officers as nominated by Heads of Departments from time to time shall be entertained by the Director Supplies and Disposals.

While placing the indents, the Indenting Officers-shall certify that necessary funds exist to meet the liability and that competent sanction to the purchase has been obtained by them.

Rule 6

Indenting Officers can indicate the time to be allowed to tenderers for submission of their tenders. In case a material is to be specially imported, they should take into consideration the time required by various firms to obtain the prices from abroad.

Rule 7

Tenders/quotations shall be invited by the authority competent to do so. Wherever it is not in the public interest to call tenders or quotations, the State Government in the Industries Department may dispense with the procedure by an order in writing.

Explanation: The value of articles to be purchased without inviting tenders shall not exceed Rs. 250/- and the total value of such purchases made during the financial year shall not exceed Rs. 3,000.

Rule 8

All indents valuing Rs. 2000 or over shall be advertised by the Directorate of Supplies and Disposals, Haryana, in the press in a consolidated tender notice. Copies of tender notices shall simultaneously be forwarded to makers or their branch offices in India or accredited agents whose lists are sent by the indenting Officer as also those suppliers whose addresses happen to be available on approved list of the Directorate of Supplies and Disposals, Haryana. It shall invariably be specified in the tender notice that the power is reserved to reject any or all the tenders received without the assignment of a reason. Furthermore the tenderers shall initial all corrections in the tender and non-compliance with this condition, will render the tenders liable to rejection
The advertisement shall be issued and regulated in the manner prescribed by Government from time to time
The consolidated advertisements should be published regularly on 1st and 16th of each month. Special advertisement, however, for emergent demands be issued by the Director; Supplies and Disposals from time to time
A period of one month from the date of publication shall be given for the receipt of tenders except in case of urgent demands where the period may be reduced to 2 weeks
The tenders shall be collected in a locked box to be opened on the day fixed for the purpose
The tenders shall be opened by a panel of three gazetted Officers of which two will be from the Directorate and one local Magistrate* to be nominated by the local Deputy Commissioner. The Directorate of Supplies and Disposals, Haryana, will intimate to the local Deputy Commissioner the date fixed for opening of tenders at least a fortnight in advance to enable him to depute a Magistrate
If no Magistrate is available then the tenders may be opened by a panel of 3 gazetted Officers of Directorate. The tenders received till the fixed time and date will be opened by the panel of officers who shall sign all sheets in the tender forms where rates are given and in the presence of such tenderers who may be present at the opening
All alterations or cuttings in the tenders shall be initialed by the panel officers

Vide Govt. letter No. l(9)-3-5-IBII-82 dated 16.2-1985 a representative of State Vigilance Bureau not below the rank of Deputy Superintendent of Police is presently associated in place of a Magistrate
All samples received from the tenderers shall be entered in a register and shall be properly secured, labeled and signed by the members of the panel

Rule 9

The tenders shall be submitted in a sealed cover duly super scribed giving the serial number of the tender and the date of opening and addressed to the Director, Supplies and Disposals, Haryana.

Rule 10

After the receipt of tenders comparative statement of rates shall be prepared by the Directorate and forwarded to the indenting Officer concerned for his comments where the decision cannot be taken independently by the Stores Organization. The Indenting Officer shall return the tenders along with his comments within 2 weeks of their receipt.

Rule 11

Due consideration shall be given to the views of indenting Officer and when it is not proposed to accept such recommendations the views of his next higher authority shall be obtained before rejecting his recommendations
When it is necessary to accept tenders other than the lowest the Indenting Officer shall obtain the approval of the next higher authority before returning the tenders to the Director, Supplies and Disposals
In the Directorate the powers for acceptance of tenders shall be exercised as may be approved by Government from time to time and above the limits so prescribed, prior approval of Government, in the Industries Department, shall be obtained whose authority shall be final

Rule 12

Normally earnest money shall be deposited by the tenderers with their tenders. As, however, this involves difficulties and a good deal of extra labor on the part of tenderers, the alternative procedure of maintaining the approved list of contractors where they deposit appropriate permanent earnest money should be followed by the Directorate of Supplies and Disposals, Haryana
When big firms do not comply with this requirement or certify that they have already deposited the security with the Director-General of Supplies and Disposals or are registered with that Organization, the question of foregoing the earnest money or of asking the firms to deposit it immediately may be gone into the individual cases. Tenders of big firms should not be rejected merely because they do not deposit earnest money along with the tenders. The Officer competent to accept the tender shall be competent to waive this condition
To arrange supply of stores valuing less than Rs. 2,000 where quotations are invited, the tenderers shall not ordinarily be required to furnish earnest money if the authority inviting the quotations is satisfied as to the financial position of the firm

Rule 13

Samples, wherever required, shall be submitted so as to reach the Controller of Stores by the date and time fixed for the opening of tenders

Rule 14

In case of large variety of materials for which rigid standards can-not be laid down, the alternative approved brands of various makers shall be specified in the tender notices and purchases made direct from the manufacturers or their accredited agents, representatives or stockists rather than from the retailers.

Rule 15

When bulk supplies are arranged the approximate delivery period for part supplies shall be indicated in the Schedule and the tenderers called upon to intimate whether they will adhere to it. They may, however, be given the option to vary the delivery dates slightly.

Rule 16

Revised or late tenders/quotations shall not be considered”, but where it is deemed necessary, in view of the rates quoted within time being high or otherwise not acceptable, all the tenderers and other known suppliers shall be given an opportunity to requote in sealed covers by a fixed date.

Rule 17

Where the suppliers are required to quote on the prescribed tender form, the tender fee is fixed Rs.500/-.

These shall be available for sale at the following places or any other place which may be notified from time to time

At the office of the Director, Supplies and Disposals
At the offices of the District Industries Officers in Haryana
At Industries Liaison Officer, New Delhi

The Tender fee shall not be refundable under any circumstances

Other Modes of purchases by the Directorate of Supplies and Disposals, Haryana

Rule 18

Limited Tender System

By inviting quotations from a large number of registered firms.―This system shall be adopted only for immediate requirements of stores and emergency shall be established and certified by the indenting Officer in writing and unless competitive tenders from at least 6 firms are received the quotations shall be rejected. If the demand happens to be very urgent the authority, next above the indenting Officer may be consulted before rejection, and if that authority recommends that the purchase be effected on the basis of the number of tenders received and certifies that the rates in tender proposed to be accepted are, reasonable, suitable action shall be taken in the Directorate of Supplies and Disposals, Haryana, after referring the matter to the authority next above that ordinarily competent to sanction the purchase
The financial power of Officers of Directorate of Supplies and Disposals, Haryana for calling such quotations shall be determined and fixed by Government from time to time

Note : This rule will not apply to purchases effected in a routine on the basis of quotations where the cost of stores does not exceed Rs, 2,000 and for which indents are not advertised
By obtaining tenders from one firm in case of articles of proprietory nature (Single tender system) available from one source―Articles of proprietary nature shall be purchased according to financial powers delegated to officers, after obtaining a certificate from the manufacturers or sole agents that the rates quoted by them are identical to those approved by the Director-General of Supplies and Disposals or they would quote to that Organization or to any other State in the country
By negotiation with Government Institutions.―Purchases can be effected by negotiations from Government Institutions by the Directorate of Supplies and Disposals, Haryana, to the extent of powers that may be delegated to officers of that Department by the competent authority from time to time
By negotiation with private parties in case of emergencies. This system shall be adopted very sparingly indeed, and in emergencies, and when it becomes necessary to do so the attention of the authority next above the authority ordinarily competent, both in the Indenting Department and in the Directorate shall be drawn to this case before doing so. Such powers shall be exercised as delegated to officers of Directorate of Supplies and Disposals, Haryana, from time to time
By purchase committees approved by Government from time to time where it is not possible to obtain competitive tenders or quotations or to lay down comprehensive and complete specifications, the purchase shall be made by purchase committees as may be appointed by the competent authority from time to time

Note : Approval of Government, in the Industries Department, whose authority shall be final shall be obtained in the cases where the amount involved exceeds, the powers delegated to the officers of the Directorate of Supplies and Disposals, Haryana, under the above Rule.

Powers of Department for local purchases

Rule 19

The officers of the Haryana Government shall exercise such powers in the matter of local purchase of stores as may be delegated to them by the State Government from time to time.

Rule 20

The Directorate of Supplies and Disposals, Haryana, shall arrange rate contract for as many articles of common use as possible after inviting open tenders in the manner aid down above.

Price Preference

Rule 21

The existing policy to grant 15 percent price preference to small-scale and cottage industries of the State over
1. Large-scale Industries of the Haryana and other States
2. Small-scale and cottage industries of other States shall continue till further orders of Government.
When tenders are called for an article and the lowest rate which is being accepted does not happen to be of an. industrialist at Chandigarh, 50 per cent of purchases shall be made from the Chandigarh industrialist provided he is prepared to effect supplies at the rate of such lowest tender, If however, more than one Chandigarh industrialist tenders, 50 percent of purchase shall be made from the lowest tenderer amongst them, provided he is prepared to effect the supplies at the rate of lowest tender. This will apply only to articles manufactured in Chandigarh. There shall, of course, be no relaxation in specifications in according preference to Chandigarh industrialists in the manner given above.

Rule 22

All articles purchased through the Director Supplies Disposals Haryana, shall before acceptance be subject to inspection of the Stores Inspection Officer or such other officer or indenting Officers as may be authorized by the Director Supplies and Disposals in this behalf. No payment for goods supplied shall be made unless the stores are inspected and passed for acceptance as laid down in each contract. The inspection officer shall certify that the stores received conform to the prescribed specifications or test or quality and are correct in No. and weight, etc. as the case may be
90 percent payment shall be made to the suppliers immediately on production of
1. An inspection note signed by an officer of the Directorate under the seal of his office which should clearly indicate that the goods were sealed in his presence in token of acceptance; and
2. Railway receipt indicating that the consignment has been booked at Railway risk
In a few cases like chemicals, glassware, crockery, and inflammable liquids, etc the Railway may not book the consignments at their risk for want of elaborate packing. In such cases, the supplier may choose to send the consignments duly insured and whenever this is done 80 percent payment may be allowed even if the railway receipt is at the owner’s risk. as losses in such cases can be recouped from the insurance companies
The disbursing officer shall be responsible to see that balance payment to suppliers are positively made within 30 days of receipt of goods by consignees, correct to the specifications as laid down in the order or within such time as agreed to and prescribed by the Directorate of Supplies and Disposals, Haryana, in individual cases
In the case of machinery where its satisfactory working is required to be examined payment should be arranged immediately on satisfaction about the condition of the machinery and in no case later than 3 months if it is to be set up and tested
When the payment is not cleared within the prescribed period, the Heads of Departments will be personally responsible to report the cases explaining clearly the reasons for the delay to the Administrative Secretary who in turn shall inform the Minister-in-charge of his Department. Where delay in payment is more than one month over and above the prescribed maximum limit, the Administrative Secretaries shall personally explain the reasons to the Minister-in-charge of their respective Departments concerned as well as to the Chief Minister

Rule 23

Where the Directorate of Supplies and Disposals arranges a rate or running contract the Indenting Officers in the State shall be under contractual obligations to draw their requirements of these articles in terms of the rate or running contract and no indent shall be sent either to Directorate of Supplies and Disposals or supply arranged of such items, even of slightly varying specifications, direct, from the market.

Rule 24

Orders placed by the Directorate of Supplies and Disposals, Haryana, shall not be canceled or terms and particulars thereof modified by indenting department except to the extent as may be approved by the Directorate of Supplies and Disposals, Haryana, in writing in each case.

Rule 25

In case where there is delay on the part of contractors in the supply of stores and articles supplied do. not conform to the samples and specifications, the Directorate of Supplies and Disposals, Haryana, with the prior approval of Government in the Industries Department, whose authority shall be final, may impose a penalty subject to the conditions contained in the agreement executed in each case. The penalty so imposed will be recoverable from the security of the contractors deposited with the Directorate of Supplies and Disposals, Haryana or their pending bills or both.

Rule 26

The Haryana Government in the Industries Department in consultation with Finance Department where necessary may sanction a departure from these rules in any individual case if the interest of the public service so requires. All applications for sanction to such departures should be made through the Administrative Department concerned. The opinion of Directorate of Supplies and Disposals, Haryana, shall, however, be obtained before sanctioning such purchase.

Rule 27

Recoveries made from contractor on account of

Recoveries made from contractor on account of
Excess cost of, the re-purchase

shall in the first instance be credited to a suspense head. When the amount is eventually determined it shall be credited as revenues of the State as receipts of the Directorate of Supplies and Disposals, Haryana.

Rule 28

The Directorate of Supplies and Disposals, Haryana, can make purchase of stores on behalf of local bodies, other States and Co-operative Societies, etc., on payment of 8% departmental charges
The charges so recovered from local bodies, other States etc., will be credited to the revenues of the State being receipt in respect of the Directorate of Supplies and Disposals, Haryana

Rule 29

The Directorate of Supplies and Disposals, Haryana, will maintain a list of approved contractors. The registration of each contractor will be renewed in the succeeding year if his performance remains satisfactory, on payment of prescribed fee.

Rule 30

The Directorate of Supplies and Disposals, Haryana, is authorized to charge 2 per cent departmental notional charges for purchases effected and inspection carried out by it on behalf of other Haryana Government departments. These notional charges are allowed for the purpose of preparation of financial review at the end of each financial year and shall not actually be charged from non-commercial departments of the State.

Rule 31

The officers of the Directorate & Supplies and Disposals will exercise such powers in the matter of purchase of stores as may be delegated to them by the State Government from time to time.

Rule 32

Tenders/Quotations for purchase of stores required for public service shall be invited on prescribed form (Schedule ‘A’ and Schedule ‘B’) at Annexure-II which have been approved by the Lav/ Department of the State. The orders on the basis of tenders/quotations shall be placed on forms at Annexures III and IV.

Rule 33

On receipt of emergent demand from the indenting officer the Directorate Supplies and Disposals, shall Place repeat order on the same firm on which a supply order has already been placed. The repeat order will be subject to the following conditions, namely

A period of two months should not have expired since the placing of the initial order
The quantity for which the repeat order can be placed should not be more than that had been ordered in the initial crder
A certificate of reasonableness cf rates has been furnished by the Indenting Officer to the effect that there has been no downward trend of the prices since the placing of the initial order
The indenting Department has furnished adequate reasons for placing the repeat order indicating as to why Indenting Officer could not anticipate his requirement in the first instance (when the original indent was placed)
The demand for repeat order shall be received within 45 days from the date of original supply order so that the Directorate of Supplies and Disposals, could complete the remaining formalities within fifteen days, and repeat order could be issued within two months from the date of the original supply order
the sanction for repeat order shall be accorded by the Director / Deputy Director/Assistant Director, Supplies and Disposals according to the financial powers delegated to them
Provided that no repeat order shall be placed in the following cases, namely
In cases where the original purchase was made on the basis of short term quotations or on the basis of spot purchase
In cases where the original order was placed after ignoring lower offer on account of the long delivery period or for want of Test Report/Tested samples
In cases where the original quantity of indent was Subsequently reduced without recording any reasons the purchase quantity was reduced as to bring the purchase within the purview of the Standing Purchase Committee (Lower)