Procurement of Standard Project Items
4.0 Brief Introduction:
A project item was procured through open tendering as per desired Codes and Standards like EJMA, BS, BS EN etc. During receipt inspection of the item, technical deviations were noted w.r.t. the standards specified in the Purchase Order (PO). Theses deviations were acceptable to the technical department but they were not reflected in the PO.
An open tender was floated for the supply of a project item as per the specifications like EJMA, BS 6501 & BS EN 10380 defined by the technical department. During Technical negotiations with the participant bidders the Technical Negotiation Committee (TNC) modified the codes and standards with the latest versions of BS and BS EN standards. Change in specifications after tender closing date is denial of equal opportunity to prospective bidders.However, the changed specificationswere also not incorporated in the PO placed on the L1 bidder. The dimensional deviations were also accepted by the Technical department after placement of order due to manufacturing constraints which were not reflected in the PO.
During receipt inspections these deviations w.r.t. PO were noted and items were rejected. The supplier represented that the items are supplied as per the agreed specifications. There was delay in amending the technical specification document resulting in subsequent delay in acceptance of the item and payment to the supplier.
The following Systemic Improvements were suggested by Vigilance Department and a memorandum to this effect was issued by Director (Shipbuilding) for compliance by all concerned.
(i) Proper study should be done by indenting department while raising the PR.
(ii) Changes accepted/agreed during the TNC meeting in respect of Scope, Specifications, qty etc.(in exceptional and unavoidable circumstances only) should be incorporated in Technical Specifications for Procurement (TSP)& Procurement Requisition (PR) and the corresponding revisions should be issued immediately so as to avoid any delay in subsequent process. However, such changes should not be accepted in a routine manner.
(iii) Change in scope/specifications after placement of order should not be accepted in routine and in cases of exigencies of work(where there is no technical & financial implications), the TSP &PR should be revised immediately on acceptance of deviations and revised copies be forwarded to all stakeholders for their information and necessary action.
4.3 Impact and Benefits:
With the above improvement, the change in tender requirement after tender closing was stopped there by making the procurement process more transparent and preventing avoidable delay at later stages of procurement.