In super session of all previous orders regarding procedure for purchases, the following procedure may be followed hereafter for procurement of raw materials, packing materials, machines & equipment, spare parts, furniture, stationery, consumable stores and all items which may be required by IDPL Corporate Office, Plants and Sales Offices.
1. The Committees : Suitable committees may be formed for the purpose. In the Plants, the composition of Committee may be as under:-
Plant Procurement & Requirement Committee (PPC): At each Plant
|1||General Manager /G.M.(I/C)/ Plant (I/C) or his nominee.||Chairman|
|2||Senior most Officer of Production Deptt.||Member|
|3||Senior most Officer of Finance Deptt.||Member|
|4||Indenting Officer.||By invitation|
|5||Senior most Officer of Purchase & Stores Deptt.||Member Secretary|
It can be reconstituted by concerned GM in the absence of any officer mentioned above.
2. Purchase Powers : The Purchase Powers are detailed in Annexure-I.Statement Indicating Delegation of Powers Regarding Purchase on Landed Cost Basis.
|Sr.No||Name of Purchase||PPC at Plants and Committees at Corporate Office||Head of P&S at Plants & Division I/C at Sales Offices||Regional Sales Offices (RSOs)|
|1||Purchase against DGS&D RateContract or through Central/State Govt. Undertakings or through Registered vendors.||Full powers||Rs. 25 Lakhs||Rs. 1 Lakh|
|2||By Open/Limited Tender where more than 1(one) tender is received, provided the lowest technically acceptable tender is accepted
1. Without negotiation
2. With Negotiation
|1. Full Powers
2. Full Powers
|1. Rs. 12 Lakhs
2. Rs. 5 Lakhs
|3||By Open/Limited Tender where one tender only is received or by single tender enquiry where there is only one known Manufacturer/Proprietary articles (including Negotiation)||Full Powers||Rs. 2 Lakhs||Rs.10000/-|
|4||By Repeat Orders||Full Powers||Rs. 5 Lakhs||Rs.25000/-|
|5||Purchase against emergency & localpurchase)||Full Powers||Rs. 2 Lakhs||Rs.10000/-|
Recommendations of the PPC be finally approved by the General Manager at plants. Recommendations of committees at Corporate Office to be approved by the CMD or the Officers to whom the powers are delegated.
3. Tenders & Enquiries
A. Raw Materials (Bulk Drugs) & Excipients : For all materials except direct import. Direct Import to be dealt by Corporate Office.
(i). Registration of Vendors for Bulk drugs and Excipients : In order to have vide publicity, advertisement is to be released in leading newspapers of the country, inviting applicants to enlist the name of vendors. In the advertisement, the details of bulk drugs & excipients are to be mentioned and no quantities are to be specified. The list of registered vendors should be placed on website. This exercise may be done for all the plants at Corporate Office or individually by all plants.
(ii). Enquiries :
(a). The enquiries are to be forwarded by individual plants on monthly/quarterly requirement basis to all enlisted vendors by FAX/E-mail/Courier giving seven days time to receive the offer. Sealed quotations may be invited, as a general rule, also mentioning time of opening of sealed quotations so that all the interested parties could be present, if they so desire. However, when the requirement is urgent, Tenders may be invited through e-mail/fax also from registered vendors giving time of one day or a few hours to receive the offer.
(b). In order to ensure procurement of quality materials and to avoid any rejection, etc, after supply, it is necessary that for new manufactures minimum three years manufacturing experience with stability data, etc be made requirement for approving the tender.
(iii). Opening of Tenders
(a). Promptly after opening of tenders, a detailed comparative statement may be prepared. The whole process be completed and finalized in two days under normal circumstances and within two hours in urgent/emergent situations. If necessary, G.M. should convene a joint meeting of the concerned officers, to avoid any delay
(b). In case, lowest tender is not acceptable, full reasons thereof should be recorded on the file. Any change in the specification or in the terms & conditions of tender enquiry, after the tenders are received, should normally not be done. However, if the same is unavoidable keeping in view the interest of the Company, the same be made after recording reasons on the file and approval of competent authority as per delegation of powers.
(iv). Placing of Order
(a). Immediately on finalization of the party based on comparative statement, the Purchase Order should be issued.
(b). Since procurement is done from the registered vendors as per procedure detailed above, there would not be any upper limit in terms of value of items to be purchased.
(c). For counter check the rates mentioned in the journals like Chemical Weekly, Pharma Biz, Pharma Pulse, etc. may be referred and comparison may be made with the offers received to check reasonability of rates. Thus the “Tender Enquiry” to “Placing of Order” should be completed in ten days under normal circumstances and within one day in emergent circumstances.
(v). Single Tender Enquiry
(a). Single tender enquiry may be issued in case of proprietary items or where there is only a single manufacturer of the items. Head of Purchase and Stores (P&S) may record in consultation with the indenter that to the best of their knowledge, there is single manufacturer of the item.
(b). In case of single tender for proprietary items, negotiations may be carried out. In all other cases, the negotiations may be carried out with L-1 only.
(vi). Local Purchase : Small value items, as per the delegation of powers (Annexure-I) may be purchased locally, by deputing Purchase Committee consisting of representatives from Purchase, Finance & Indenters by collecting sealed offers from local vendors. However, in emergent cases, individual items having value below Rs.10,000/- may be procured without quotation with approval of General Manager/Competent Authority.
B. Packing Material by Plants
(a). Plants may conclude Rate Contract (R/C) for purchase of packing materials through open Advertisement. After approving their quality, the Rate Contract may be concluded for one year. Subsequently, as per market information, if the rates are reduced than the approved rates, even after concluding the Rate Contract, negotiations may be carried out and advantage of reduced rates can be availed, without compromising with quality.
(b). For bulk purchases, preference should be given to manufacturers, if they give their offer. In case, the manufacturers are not giving offers, then traders are considered if their offers are in accordance with our terms and conditions
(c). For common and low value packing materials such as corrugated boxes, glass bottles, etc, preference may be given to local suppliers as outside suppliers nay not be interested due to low costs of material and involvement of higher freight cost.
(d). Guidelines regarding opening of tender, placing of order, single tender enquiry and local purchase etc. remain same as under the heading “Raw Material & Excipients”.
C. Machines/Equipments/Engineering Spares & Maintenance and iscellaneous items
(i). Limited Tender for items with value upto Rs. 15 Lakhs : For purchase of single item not exceeding Rs.15 lakhs, for which a good number of suppliers are known, LTE may be resorted to, if considered advantageous. LTE should be issued to maximum number of known manufacturers/suppliers for which reference can be made to Internet, Buyers Guide & Journals, etc. LTE should be issued by Fax/e-mail/Courier giving 07 to 15 days to receive the offer. It should also be put on website if possible.
(ii). Advertised Tender : Purchase of single item exceeding Rs.15 lakhs should be made by open advertisement giving 07-15 days time for receiving the offer. If this cannot be done, reasons may be recorded in writing & approval for the same may be obtained from CMD.
(iii). Guidelines regarding opening of tender, placing of order, single tender enquiry and local purchase etc. remain the same as under the heading “Raw Material & Excipients”.
4. Extension of Delivery Date : In case, the contractor is not at fault, the extension of delivery date may be decided by G.M. However, if contractor is at fault, the extension may be allowed and the levy should be imposed on contractor as per terms of contract with no increase of taxes and duties on IDPL's part during extended period. The approval of General Manager is to be obtained for such cases.
5. Risk Purchase : In case any supplier fails to supply the ordered material and it becomes necessary to procure the material from alternate source, then efforts may be made for the cancellation of the contract at risk and expense immediately after initiating risk purchase action promptly. In order that the defaulting party may not find any lacunae, with the manner in which the risk purchase is carried out, the Risk Purchase may be done through LTE/Registered vendors/ Open Tender, keeping same specifications and descriptions of goods and other conditions. In case of urgent requirement of materials, the risk purchase may be done as in case of emergency purchase of items.
A. The above purchase powers delegated may be exercised by the Competent Authority. In case of PPC and other Committees, the Finance Department is a part of the committees and therefore, separate approval of Finance will not be required. In other cases, the concurrence of Finance may be obtained. In case of Sales Divisions and RSOs, the purchase proposals may be sent to Finance Department at Corporate Office for post-facto ratification.
B. The delegation is for the total value of purchase order including sales tax, freight etc. proposed to be placed on one or more parties against individual enquiries.
C. Lowest tender means lowest among the tenders received which conforms to specifications
D. Repeat Orders : In case of bulk drugs and excipients, registration of vendors is done through open advertisement which is valid for one year. For each purchase, fresh quotations will be invited from registered vendors. Therefore, there will be no necessity for repeat orders in this case. In case of Packing materials also, the R/C is concluded for one year through open advertisement and the requirements will be ordered from time to time, as per the need. Therefore, this case will not be covered under the repeat order. For other items while considering placing of repeat orders, the following conditions may be satisfied :-
(i). Previous order should have been placed within 12 months by open or limitedtender.
(ii). Officers empowered to place repeat orders should record that there is no downward trend in prices to the best of their knowledge.
(iii). When any additional quantity is required after placement of Purchase Order, suchaddition may be considered as repeat orders.
E. In case of lack of sufficient competition, late tenders may be considered with the Recommendations of PPC & approval of General Manager.
F. Abbreviations Used : PPC = Plant Procurement & Requirement Committee; R/C= Rate Contract; P & S = Purchase & Stores Deptt.; RSO = Regional Sales Office; LTE = Limited Tender Enquiry.