RTI
2.0 Brief Introduction:
CTE type intensive examination of a Civil work renovation of an existing facility was carried out by Vigilance Dept.
2.1 Background:
During intensive examination, scrutiny of all the documents from Purchase Requisition to Final bill was carried out. During scrutiny of records, following observations were made:
(a) The Purchase order for renovation work was placed after following the normal commercial procedure for procurement of works. After placement of PO, a huge number of “Extra items” amounting to approx. 25% of Project value were executed under the same PO.
(b) While finalizing the rates of extra items, the lack of due diligence with respect to intensive market survey, checking the price reasonability, selection of extra items, vendors, makes, etc. was observed from the concerned executives of Indenting/ User Dept., Executing Dept., PNC members, etc.
2.2 Implementation:
Based on the CTE type investigation, following Systemic Improvements have been suggested by Vigilance department and accepted by management in order to avoid the recurrence of the same in similar projects in future:
i. With regards to Extra Items being procured, if any, presently, there is no ceiling in the upward revision in contracted price caused due to additional (Extra) items being procured or increase in the quantities of BOO items. Hence, there is possibility that this upward revision may go beyond 100% of original PO value, which is not a correct practice. There should be a ceiling in terms of percentage, for procuring the extra items or GoW in existing items after placement of a Purchase Order.
ii. In case of a requirement by Indenting Dept. for procuring an item of specific Brand/Make/Model and through a specific Vendor/Supplier/Shop, the AIP/AoN with proper justification should be obtained by the Indenting Dept. from the Competent Authority (minimum rank of Functional Director), through relevant FCA.
iii. Readily available / bought out items like TV, Fridge, microwave, water purifiers, furniture/furnishing items, kitchen equipment, Air conditioners etc. which are not part of original order/contract may be procured through separate tenders or through various types of procurement instead of undertaking the same as extra items through same contract.
iv. Clear guidelines may be incorporated as a revision to Purchase manual for requirement of PNC for finalization of rate for additional scope/ Growth of Work.
v. As a part of digitization of records, the details of "Contractors All Risk" (CAR) Insurance Policy along with its validity and details of Stamp duty paid by the contractor etc. may be introduced in SAP system in order to have easy access/traceability of the documents.
2.3 Impact and Benefits:
Based on above investigation, D(CP&P) has issued a memo no. D(CP&P)/VIG/23/2025/OTS/01/SI/01 dated 22.05.2025 to ensure the compliance of the recommendations for implementation in similar projects.
