DGS&D- Public e-procurement

DGS&D- Public e-procurement

Supply Chain Management

DGS&D- Public e-procurement

The DGS&D,

the Director General of supplies and disposals is the central agency (DGS&D- Public e-procurement), which buys material on behalf of Government of India.

It services various government departments like Ministries, public sector undertakings, Railways, state governments, local public bodies and Quasi public bodies like municipalities, district boards, etc. being a central purchase organization.

It has brought in substantial standardization of the procedure for tendering and contracting. DGS&D is accountable to Parliament for its actions.

Organization structure of DGS&D

It is headed by director general, who is supported by one additional director general and five Deputy Director Generals. Its headquarter is at Delhi and regional offices are at Kolkata, Mumbai, Chennai and Kanpur.

Besides, for Overseas purchases it has offices in London and Washington. It has four wings viz. supplies, inspection, progress and disposals. How you were supplies wings is main stay of the organization.

This thing has 11 directorates under it, dealing in different types of goods. In order to deal with homogeneous groups of item at one place, grouping at the purchase directorate has been made.

The Planning and development division rationalizes specifications and draw comprehensive program for receipt and booking of indent of common user item.

The O and M branch devises procedure, systems and effective control necessary to improve efficiency. The statistical branch maintains the up to date statistics of the requirements and publishes the annual report and directory of government purchases.

The inspection wing checks specifications of the supplies made by the suppliers and monitors the quality during the manufacturing process. It also gives technical advice to the various user departments.

The progress being keeps track of the supply position after contract is placed and makes efforts to expedite the supply.

Three branches of these Wings our defense, Railways and general. This week has number of field offices spread all over the country.

The disposal wing Shoulders as the responsibility of disposal of surplus materials. A limit of rupees 10000/-  has been set for disposal of Stores buy indenting department themselves. The annual value of disposal by this wing is estimated to be rupees 50 cores.

Public Relations directorate handles complaints from suppliers and also gives solutions to solve their problems. It also gives advice on procedural matters and disseminate information about working of DGS&D. besides, DGS&D also has a contract officer, legal adviser and liaison with Railways and defense.

The organization also has cost accounts branch, Deputy Secretary for internal and Finance matters and a purchase advisory Council under the chairmanship of minister of supply.

Representatives of trade, industry Indenters are member of this Council. This Council work as a catalyst to increase efficiency of organization and help to change the organization in tune with the social economic environment in country by advising on procurement policy and procedures.

Purchasing procedure

DGS&D give the top preferences to the raw materials and items manufacturers in India, followed by items fully or partly manufactured in India using imported materials then for items manufactured abroad but stocked in India and lastly for imported items manufactured overseas.

The payments are made in Rupees and deliveries are taken in India except in exceptional cases. DGS&D also encourages purchases from small scale units by giving them price preference of 15% Vis a Vis offers from units in organized sector.

Once the indent is registered in the central indent section after checking, it is sent to the tender enquiry section of the concerned purchase directorate. Then depending upon the value, nature and delivery period for the goods to be purchased the quote for the tenders are invited.

The tenders may be advertised tenders, Limited tender on single tender for proprietary article, once the contract is placed after evolution of tender, the supplier calls inspectors for the inspection. The inspected stores are then dispatched to the consignee by the supplier.

The supplier takes 4 to 6 weeks to commence supplies. Sometimes, if necessary, DGS&D assist supplier to get critical raw materials required to produce the item to be purchased. Generally DGS&D takes about 10 to 12 week to places contract after receipt of indent.

Registration of suppliers

DGS&D maintain a list of registered suppliers. Manufacturers, stockiest of indigenous and imported materials, sole selling agents of Indian manufacturers and Agents of overseas manufacturers can registered with DGS&D. both Indian and foreign firms can register with their names as per the prescribed form of DGS&D.

The applications are scrutinized and evaluation of suppliers in terms of plant machinery available, technological strengths, funds position and the standing in the market is undertaken.

The quality of the product is also inspected by personal visit to the factory. After approval, the firm is included in the list of registered suppliers. Incidences of adhoc purchases from the registered suppliers on a limited tender basis is also observed many times.

Advantages of registration are as follows.

  1. The first preference is given to the registered firms.
  2. Demands, which are not advertised are fulfilled by registered firms.
  3. For advertised demands, copies of the notice are sent to the registered supplier.
  4. Rate contract and running contract items are generally reserved for registered suppliers.
  5. Demands for supplies, which have operational priority are reserved for procurement from Register firms.
  6. Generally all routine demands are fulfilled through registered suppliers. Similarly about 70 to 80% of the urgent demands are reserved for supply from registered suppliers.
  7. No security deposit is required to be made by the registered suppliers.
  8. Registered firms with DGS&D may be exempted from payment of security deposit even by public sector undertakings and state government departments.
  9. Registration with DGS&D enhances overall image of the supplier Organization in the market.

Types of contracts

Rate Contract (R.C.)

This is a contract for supply of goods of specified rate during the period covered by the contract, generally one year. RC is generally made with only those suppliers whose capacity to deliver the goods as per demand of indenters has been verified.

The main advantage to the intent is that he can procure goods as and when wanted without doing elaborate paperwork and without losing time.

The supplier is assured of substantial demand during the period and can enjoy benefit of economies of large scale production. Generally, order or RC are placed for minimum total value, which is specified in the tender enquiry for RC and also in the rate contract.

Running contract (RG/C)

This type of contract is for the supply of an approximate quantity of stores at specified price during period covered by contract, generally one year.

DGS&D combines approximate requirements of number of indenters for certain period and any of these indenters can demand his requirements at any time or specified period, from the supplier directly or through intent on DGS&D.

Ihe purchaser has the right to take a certain quantity (generally 25%) more or less than the approximate quantity mentioned in the contract. generally about 75% of the contractual quantities are taken before the expiry of the contract.

Payment procedure

The payments are decentralized and can be obtained from regional offices also. Generally, the terms of contract are as follows.

  1. 95% on proof of inspection or dispatch or a provisional certificate from the consignee in case of local deliveries.
  2. 5% after receipt of stores in good condition by the consignee.

Pay and Accounts Officer arranges is the payment of supplier’s bill within 2 to 3 weeks of their presenting, if they are in order.

For C.I.F. contracts, 95% of the price will be paid in India on presentation of shipping documents along with the inspection certificate.

Balance 5% will be paid on receipt of the stores in accordance with the terms of the contract in good condition by the consignee and introducing the certificate of such a seat endorsed on one copy of the inspection note.

Ministries and government departments on their own also make purchases of high values, other than DGS&D purchases, mainly for projects. Government and public sector undertaking purchases being be bureaucratic and time consuming, there is lot of scope for improvement and bringing professional approach. This can be achieved through professional training and adapting to the modern method and technologies.


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