Principles of Procurement

Fundamental principles of public buying (for all procurements including procurement of works). Every authority delegated with the financial powers of procuring goods in the public interest shall have the responsibility and accountability to bring efficiency, economy, and transparency in matters relating to public procurement and for fair and equitable treatment of suppliers and promotion of competition in public procurement.

The 5 Rights of Procurement are inter-linked, each having an effect on the other. Therefore, the importance of the five Rights of Procurement is the impact the failure to achieve one Right has on the success of achieving all 5 Procurement Rights and provides a framework for effective purchasing and supply chain management.

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• The description of the subject matter of procurement to be objective, functional, generic and measurable and specify technical, qualitative and performance characteristics. Not indicate a requirement for a particular trademark, trade name or brand
• The specifications in terms of quality, type etc., as also quantity of goods to be procured, should be clearly spelt out keeping in view the specific needs of the procuring organisations. 
• Care should also be taken to avoid purchasing quantities in excess of the requirement to avoid inventory carrying costs.
• Offers should be invited following a fair, transparent and reasonable procedure.
• The procuring authority should satisfy itself that the price of the selected offer is reasonable and consistent with the quality 
  Procuring authority must place on record in considerations which weighed with it while taking the procurement decision required.
   

Resources

1. Manual for procurement of goods 2017, Ministry of Finance, GoI
2. General Financial Rules 2017, Ministry of Finance, GoI

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