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Procurement Manual for Non-Consultancy Services

The Manual for Procurement of Non-Consultancy Services, 2025 outlines various procurement modes including Limited Tender Enquiry (LTE) for up to Rs. 50 lakhs and Special Limited Tender Enquiry (SLTE) for exceptional circumstances above that threshold. It also details nomination modes for specific contractor selection, shopping modes for small-value procurements, and rate contracts for pre-agreed pricing. Further applicability and terms are referenced to the Manual for Procurement of Goods, 2024.

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Mohit Sahay
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20 views1 page

Procurement Manual for Non-Consultancy Services

The Manual for Procurement of Non-Consultancy Services, 2025 outlines various procurement modes including Limited Tender Enquiry (LTE) for up to Rs. 50 lakhs and Special Limited Tender Enquiry (SLTE) for exceptional circumstances above that threshold. It also details nomination modes for specific contractor selection, shopping modes for small-value procurements, and rate contracts for pre-agreed pricing. Further applicability and terms are referenced to the Manual for Procurement of Goods, 2024.

Uploaded by

Mohit Sahay
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Manual for Procurement of Non-Consultancy Services, 2025

checks of capability and past experience, without relying on wide publicity or stringent
qualification criteria. (Rule 162 GFR 2017):
i) Limited Tender Enquiry (LTE): This mode invites bids from a select group of
suppliers/ service providers and is used for procurements up to Rs. 50 lakhs.
(Refer Annexure 9)
ii) Special Limited Tender Enquiry (SLTE): LTE type of process applicable for
procurements above Rs. Fifty lakhs in exceptional circumstances, where
limited competition is justified.
d) Nomination Modes: If, in an exceptional situation, it becomes necessary to procure a
non-consulting service from a specifically chosen contractor, the Competent Authority
in the Ministry or Department may do so in consultation with the Financial Adviser. In
such cases, detailed justification, the circumstances leading to the selection, and the
special interest or purpose served by this procurement must form an integral part of
the proposal. (Rule 204 GFR 2017):
i) Proprietary Article Certificate (PAC): This is used when procurement is required
from a specific vendor due to the proprietary nature of the goods or services
(say, from OEMs).
ii) Single Tender Enquiry (STE) without PAC: This allows procurement from a
single source without a PAC under specific conditions. In case of Single Tender
procurements:
1). a report relating to such awards on nomination basis shall be submitted
every quarter to:
• The Secretary, in case of Ministries/Departments.
• The Board of Directors or equivalent managing body, in case of Public
Sector Undertakings, Public Sector Banks, Insurance companies, etc;
• The Chief Executive of the organisation where such a managing body
is not in existence.
2). The audit committee or similar unit in the organisation may be required to
check at least 10% of such cases.
e) Shopping Modes: These are used for small-value procurements where formal
tendering is not practical. (Rules 154, 155 GFR 2017):
i) - Direct Procurement without Quotation: Small purchases (upto Rs 50,000)
made directly without soliciting formal bids. (refer Annexure 7)
ii) Direct Procurement by Purchase Committee: A committee-based approach for
direct purchases, typically used for low-value (upto Rs 5 Lakhs) items. (Refer
Annexure 8)
f) Rate Contracts: Also known as Framework Agreements, are agreements with
suppliers/ service providers to provide goods or services at pre-agreed rates for a
specified period.
4. Applicability, Terms and Conditions, Risks, and mitigations of these modes of
procurements (including restrictions regarding GTE mode for procurements below Rs 200
Crore) are detailed in Chapter 4 of the Manual for Procurement of Goods, 2024 which may
be referred to. For the sake of brevity, these are not repeated here.
5. Mode of Procurement of Higher Value Non-consultancy Services: In procurements of
Non-consultancy services above Rs 50 (Rupees Fifty-five) Lakhs, it should normally by an

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Common questions

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The manual suggests employing Framework Agreements or Rate Contracts as a risk mitigation strategy, allowing agreements with suppliers at pre-agreed rates for stable procurement over a specified period .

Accountability in nomination-based procurement is ensured through quarterly reports submitted to senior officials like Secretaries or Board members. Additionally, 10% of such cases might be checked by audit committees .

Direct Procurement without Quotation is allowed for small purchases up to Rs. 50,000, where formal bids are not solicited. For larger purchases up to Rs. 5 lakhs, procurement can be done by a Purchase Committee .

Nomination mode is chosen in exceptional circumstances requiring a specific contractor, necessitating detailed documentation of the decision's rationale and the special interests served .

For proprietary goods or services, procurement is handled through a Proprietary Article Certificate (PAC), requiring procurement from a specific vendor due to the proprietary nature. Unlike general processes, these cases necessitate detailed justification and documentation approved by the Competent Authority .

The Competent Authority, in consultation with the Financial Adviser, approves procurement from selected contractors, ensuring decisions are justified with detailed proposals in nomination modes .

Single Tender Enquiry without a PAC is permissible under specific circumstances where procurement from a single source is justified, often documented in a quarterly report to appropriate authorities like the Secretary of Ministries or Boards of Public Sector Undertakings .

The Proprietary Article Certificate (PAC) is defined for use in cases where services or goods are proprietary, necessitating procurement from a specific vendor typically an Original Equipment Manufacturer, to ensure compatibility or compliance .

LTE is used for procurements up to Rs. 50 lakhs, inviting bids from a select group of suppliers. In contrast, SLTE applies to procurements above Rs. 50 lakhs in exceptional circumstances where limited competition is justified .

Procurement modes vary significantly below Rs. 200 crore, typically forbidding GTE mode. Higher values generally require competitive bids, justifying the stringent criteria observed in procurement above Rs. 55 lakhs .

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