PROCUREMENT PROCEDURES IN ICDS

National Institute of Public Cooperation & Child Development

5, Siri Institutional Area, Hauz Khas, New Delhi - 110016

PROCUREMENT PROCEDURES IN ICDS

1.RATIONALE

ICDS is expanding to all the blocks of the country. The expansion of the scheme depends on trained personnel and a dedicated channel of supplies to the Projects. It is imperative to focus and streamline the supplies to ICDS Projects in order to minimize disruption in services and ensure smooth delivery of services. Towards this end, a review of procurement procedures of ICDS supplies has been mooted. Hitherto, the procedures were available in the form of Government Orders (GOs) and Circulars issued by the then Department of Women & Child Development and the present Ministry of Women & Child Development. The GOs / Circulars are generally comprehensive and meticulous albeit limited to the subject at hand. It is proposed to consolidate the Procurement Procedures in the form of a ready reckoner on the lines of Procurement Procedures issued for Sarv Shiksha Abhiyan (SSA) to facilitate the implementing partners in procuring ICDS items in a timely, transparent and judicious manner.

2.SCHEMATIC PATTERN

The scheme of Integrated Child Development Services is a centrally sponsored programme and implemented through the State Govts. with cent percent financial assistance from the Central Government for inputs other than supplementary nutrition. Since the States were not providing adequately for supplementary nutrition due to financial constraints, the Central Govt. has, from the year 2005-06, decided to provide financial assistance to the States upto 50% of the financial norms or 50% of the actual expenditure incurred by the States on supplementary nutrition, whichever is less.

The scheme further provides that Central Social Welfare Board, Voluntary Organizations, local bodies, PRIs (wherever these are functioning efficiently) etc. are to be actively involved in this programme for implementation, soliciting community support etc.

The cost of all inputs as provided in the scheme is met by the Ministry of Women and Child Development in the centrally sponsored Projects.

The implementation of the ICDS Scheme necessarily entails procurement of infrastructure, services and other operational inputs viz. Medicine Kits, PSE Kits, items for Supplementary Nutrition, IEC Material, Equipment and Furniture and Vehicles, within the parameters of the Scheme.

The responsibility for the implementation of ICDS Scheme rests with the State Govts. and therefore the award and administration of contracts under the scheme rest with the State Govts. It should be ensured that the ICDS funds are used only for the purposes for which they are granted, with due attention to considerations of economy and efficiency and without regard to political or other non-economic influences or considerations.

3.SUPPORT FOR IMPLEMENTING ICDS

The nature of support in the scheme can be broadly divided into the following categories:

i) Infrastructure Building/accommodation for AWC

ii) Services including recruitment of personnel

iii) Items of operational inputs

Infrastructure: The Scheme provides that accommodation of Anganwadi Centre shall be provided by the community free of rent. However, wherever such accommodation is not available, a provision for payment of rent for AWC is available depending on the location of AWC Urban, rural and tribal.

Services and Recruitment of Personnel: All ICDS functionaries are State Govt. employees, except AWWs and Helpers who are honorary workers. The AWWs and Helpers are paid fixed amount of monthly honorarium as may be decided by the Govt. from time to time. The regular employees are recruited by the State Govt. as per the recruitment rules and conditions of services are applicable to each category.

Operational Inputs: Various items of procurement and existing budgetary ceiling prescribed by the Govt. of India are in Table 1.Table 1: Items and Budgetary Ceiling in ICDS Scheme

S.No.ItemBudgetary Ceiling

1.Medicine KitsRs.600/- per AWC/PA

2.PSE KitsRs.500/- per AWC/PA

3.Contingencies*Rs.600/- per AWC/PA

Rs.30,000/- CDPO/PA

Rs.50,000/- DPO/PA

State Cell Rs.60,000 (with less than 50

Projects) PA

Rs.80,000 (with 50 to 200 Projects)

Rs.1,00,000 (with more than 200 Projects)

4.IEC**Rs.25,000 per Project/PA to all

Except

Lakshadweep, Dadar & Nagar Haveli and Daman & Diu

Rs.50,000/- per Project/PA

5.Monitoring and Evaluation Mechanism ***Rs. 200/- per annum (Operational)

6.RentRs.200/- per AWC p.m. in Rural/Tribal Projects

Rs. 750/- per AWC p.m. in Urban Projects

7.POLCDPO/DPO Rs.50,000/- PA

State Cell - Rs.60,000/- PA

8.Equipment/Furniture (one time-non-recurring)AWC - Rs.5,000/-

CDPO Rs.91,700/-

Distt. Rs.91,700/-

State (i) Rs.60,000/- (For less than 50 Projects

(ii) Rs.1,20,000/- (For more than 50

projects)

9.Supplementary NutritionRs.2.00 per child per day

Rs.2.70 Malnourished child

Rs.2.30 Pregnant & Lactating mothers

* Even though norms have been specified for each level, the State Govts. may re-allocate and re-distribute the contingent amount amongst AWCs, CDP Offices, District Offices and State Cells adhering to overall norms, keeping in mind the requirement and specific needs

The contingent amount may also be utilized for replacement of weighing scales and other equipment at all level. If it is absolutely essential, this amount may also be utilized for purchase of new equipment like Computers, provision of Internet connections, Fax machines, Xerox machines and essential furnitures.

(No. 1-2 (iv)/2000-CD.1 dated 1.9.2000)

** The State Govts./UT Administration may divide the financial allocation amongst projects/districts and state depending on priority, needs and requirements, keeping the overall State/UT limit intact.

(No.1-2 (iii)/2000-CD.1 dated 10.8.2000)*** The cumulative amount available with the State Govt. for the purpose may be utilized for the activities like: printing of records, registers, replacement/repair of weighing scales, computerization of project office/district/state cell/data entry, maintenance of hardware, internet/E-mail.

(No.16-8/2000-ME dated 26.9.2000)

4.GENERAL PRINCIPLES OF PUBLIC BUYING

Every Authority delegated with the financial powers of procuring goods in public interest shall have the responsibility and accountability to bring efficiency, economy, transparency in matters related to public procurement and for fair and equitable treatment of suppliers and promotion of competition in public procurement.

The procedures to be followed in making public procurement must confirm to the following yardsticks :-

i) Bulk requirement of store for state office and district level offices should be assessed at the beginning of the financial year.

ii) 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 organization. The specifications so worked out should meet the basic needs of the organization without including superfluous and non-essential features, which may result in unwarranted expenditure. Care should also be taken to avoid purchasing quantities in excess of requirement to avoid inventory carrying costs;

iii) Offers should be invited following a fair, transparent and reasonable procedure;

iv) The procuring authority should be satisfied that the selected offer adequately meets the requirement in all respects;

v) The procuring authority should satisfy itself that the price of the selected offer is reasonable and consistent with the quality required;

vi) At each stage of procurement the concerned procuring authority must place on record, in precise terms, the consideration which weighed with it while taking the procurement decision.

5.LEVELS OF PROCUREMENT

The items required for implementation of ICDS programme will be procured at: (a) Community/village level (b) Project level; (c) District level and (d) State level. The procurement procedures as laid down in the State Government Rules and Central Government Rules communicated through different guidelines and circulars from time to time should be strictly followed.

The various levels and items normally procured are given below. The items mentioned against each are indicative and implementing agencies may cumulate the requirements and procure any item at block, district, state level keeping in view the financial norms indicated.

Items to be procured at Anganwadi Centre Level

1. Items/Material for general use

2. Bathroom items

3. Utensils

4. Play items

5. Registers etc.Items to be procured at Project Level

1.Furniture/equipment/computer etc.

2. Contingent items related to stationery

3. Teaching learning material

4. Items related to Mothers/Mahila Mandal meeting

5. Printing materialDistrict Level

1. Office equipment for DPO/PO

2. Office furniture for DPO/PO

3. Reading materials/supplementary material

4. Documentation of best practices at the project level

5. Aids and appliances and other requirement for handicapped/disabled children

6. Office contingencies

7. Hiring of vehicles

8. Maintenance of equipment and vehicles

9. Printing work/material

10. SNP

11. Educational kits for Adolescent Girls

State Level Computers and its accessories

Office equipment

Office furniture

Equipment for distance education

Aids and appliances and other requirement for disabled children

Office contingencies

Hiring of vehicles

Maintenance of equipment and vehicles

Printing work

Engagement of NGOs

Engagement of experts/ resource persons

6.PROCUREMENT PLAN- The preparation of a procurement plan is an essential need/requirement

- The procurement plan covering equipment, goods, vehicles and consultancy services and resource support shall be prepared on a firm basis for Ist year of the programme and on a tentative basis for the subsequent years

- Procurement plan shall be prepared every year for proper monitoring and implementation

- The procurement plan shall be sent to the Ministry of Women and Child Development, GOI

- The procurement plan shall be prepared contract wise

- The method of procurement shall be based on the value of contract

- In case the procurement activity could not be completed in a year as per the plan and the same is to be carried over to the next year, a reference to this effect should be made to the MWCD, GOI stating the reasons for not procuring the items in the particular year. It should also be mentioned to the MWCD that except for the carry forward of the procurement, all other procedures remain unchanged

- It shall be ensured that the procurement is based on actual need

7.METHODS OF PROCUREMENT UNDER ICDS1. Open tenders

2. Limited tenders

3. Single Tender

4. Without Tender and

5. Through Local Community

7.1Open Tenders Open Tender is the competitive bidding procedure normally used for public procurement in the country and may be the most efficient and economic way of procuring goods by their nature or scope. The procedure shall provide for adequate competition in order to ensure reasonable prices, and methods used in the evaluation of tenders and the award of contracts shall be made known to all bidders and not be applied arbitrarily.

Steps: Various steps involved in procurement under Open Tender procedure are given below:

(a) Notification/Advertising

(b) Issue of tender documents

(c) Submission of tender documents

(d) Public opening of tender

(e) Evaluation

(f) Selection of lowest evaluated responsive tender based on post qualification

(g) Negotiation with L-I (if necessary)

(h) Contract awards, and

(i) Contract performance

Notification/Advertising: Timely notification of bidding opportunities is essential in competitive bidding:-

(a) Invitation to bid shall be published in newspapers and at least in one national English daily, if estimated value is Rs.25 lakhs and above.

(b) State Govt. having its own website should also publish all its advertised tender enquiries on the web site and provide a link with NIC website. It should also give its website address in the advertisements in newspapers.

(c) If it is noted in the invitation for tender that Earnest Money is to be deposited by the supplier/contractor, the bid of a supplier/contractor not complying with this requirement shall be rejected. In the case of deposit of Earnest Money, the existing States procedure may be followed. However, it is desirable that a level playing field be created in this regard.

(d) In a package the Earnest Money is indicated taking into account all the items. This cannot be changed later on. Once it is decided that the contract is for a package, the Earnest Money for that package is to be indicated and the same cannot be changed according to each item.

(e) The last date for receipt of tender shall be the day following the date for close of the sale of tender documents.

(f) Ordinarily, the minimum time to be allowed for submission of bids should be three weeks from the date of publication of the tender notice or availability of the bidding document for sale, whichever is later.

Tender Documents: All Govt. purchases should be made in a transparent, competitive and fair manner, to secure best value for money. Standard State Governments tender documents should be used. The sale of tender document should begin only after the publication of notification for tender in newspaper. The tender documents shall furnish all information necessary for a prospective bidder to prepare a tender for the goods to be provided.

The text of the bidding document should be self contained and comprehensive without any ambiguities. All essential information which a bidder needs for sending responsive bid, should be clearly spelt out in the bidding document in simple language. The bidding document should contain, inter-alia:-

a) the criteria for elibility and qualifications to be met by the bidders such as minimum level of experience, past performance, technical capability, manufacturing facilities and financial position etc.;

b) eligibility criteria for goods indicating any legal restrictions or conditions about the origin of goods etc., which may required to be met by the successful bidder;

c) the procedure as well as date, time and place for sending the bids;

d) date, time and place of opening of the bid;

e) terms of delivery;

f) special terms affecting performance, if any.

The basis for tender evaluation and selection of the lowest evaluated tender shall be clearly outlined in the instructions to tenders and/or the specifications. Tender documents should be made available to all who seek them, regardless of registration status and they should be allowed to bid.

Technical Specification: Technical specifications and quantity required should be prepared before tendering. Specifications for the items to be procured should be drawn up in every case with clarity. No deviations from the specifications after opening of tender should be allowed.

Validity of Tender: Bidders shall be required to submit tender valid for the period specified in the tender documents. Normally, the bid valid period shall not exceed 90 days.

Earnest Money: To safeguard against a bidders withdrawing or altering its bid during the bid validity period in the case of advertised or limited tender enquiry, Bid Security (also known as Earnest Money) is to be obtained from the bidders except those who are registered with the Central Purchase Organisation of the State Govt., National Small Industries Corporation (NSIC) or the concerned State Ministry or Department. The bidders should be asked to furnish bid security along with their bids. Amount of bid sercurity should ordinarily range between 2% to 5% of the estimated value of the goods to be procured. The exact amount of bid security, should be determined accordingly by the State Department and indicated in the bidding documents. The bid security may be accepted in the form of Account Payee Demand Draft, Fixed Deposit Receipt, Bankers Cheque or Bank Guarantee from any of the commercial banks in an acceptable form, safeguarding the purchasers interest in all respects. The bid security is normally to remain valid for a period of forty-five days beyond the final bid validity period.

Bid securities of the unsuccessful bidders should be returned to them at the earliest after expiry of the final bid validity and latest on or before the 30th day after the award of the contract.

Standards and Technical specifications: As far as possible, the implementing agency shall specify the generally accepted standards of technical specifications. Unbiased technical specification shall be prepared with no mention of brand names and catalogue numbers.

Tender documents should State clearly whether the bid prices will be fixed or price adjustment will be made to reflect any changes in major cost components of the contract.

Terms and Methods of Payment: Payment terms shall be in accordance with the practices applicable to the specific goods/items and works. Tender documents should specify the payment method and terms offered.

Conditions of Contract: The contract documents shall clearly define the scope of work to be performed, the goods/items to be supplied, the rights and obligations of the implementing agency and of the Supplier or Contractor, and the functions and authority of the engineer, architect, or construction manger, if one is employed by the implementing agency, in the supervision and administration of the contract.

Performance Security: i) To ensure due performance of the contract, Performance Security is to be obtained from the successful bidder awarded the contract. Performance Security is to be obtained from every successful bidder irrespective of its registration status, etc. Performance Security should be for an amount of 5% to 10% of the value of the contract. Performance Security may be furnished in the form of an Account payee Demand Draft, Fixed Deposit Receipt from a Commercial bank, Bank Guarantee from a Commercial bank in an acceptable form safeguarding the purchasers interest in all respects.

ii)Performance Security should remain valid for a period of sixty days beyond the date of completion of all contractual obligations of the supplier including warranty obligations.

iii) Bid security should be refunded to the successful bidder on receipt of Performance Security. Tender opening: The time for the tender opening should be the same as the deadline for receipt of tenders or promptly thereafter.

Tenders shall be opened in public, that is, bidders or their representatives shall be allowed to be present.

All tenders received should be opened and the name of the bidder and total amount of each bid shall be read out at the time of bid opening.

No bid should be rejected at bid opening except late tenders, which shall be returned unopened to the bidder.

Minutes of bid opening must be prepared.

Confidentiality: After the public opening of tenders, information relating to the examination, clarification, and evaluation of tenders and recommendations concerning awards shall not be disclosed to bidders or other persons not officially concerned with this process until the successful bidder is notified of the award.Examination of Tenders

(a) The implementing agency shall ascertain whether the tenders.

(i) meet the eligibility requirements specified

(ii) have been properly signed

(iii) are accompanied by the required securities and are valid for the period specified in the tender document

(iv) are substantially responsive to the tender documents, and

(v) are otherwise generally in order

(b) If a bid is not substantially responsive, that is, it contains material deviations from or reservations to the terms, conditions, and specifications in the tender documents, it shall not be considered further. The bidder shall not be permitted to correct or withdraw material deviations or reservations once tenders have been opened.

Tender Evaluation and Comparison(a) Bids received should be evaluated in terms of the conditions already incorporated in the bidding documents; no new condition which was not incorporated in the bidding documents should be brought in for evaluation of the bids. Determination of a bids responsiveness should be based on the contents of the bid itself without recourse to extrinsic evidence.

(b) Bidders should not be permitted to alter or modify their bids after expiry of the deadline for receipt of bids.

(c) Negotiation with bidders after bid opening must be severely discouraged.

(d) Contract should ordinarily be awarded to the lowest evaluated bidder whose bid has been found to be responsive and who is eligible and qualified to perform the contract satisfactorily as per the terms and conditions incorporated in the corresponding bidding document.

(e) The implementing agency shall prepare a detailed report on the evaluation and comparison of tender setting forth the specific reasons on which the recommendation is based for the award of the contract.

Extension of Validity of Tender: An extension of bid validity, if justified by exceptional circumstances, shall be requested in writing from all bidders, (of valid tenders only) before the expiration dated only with the prior approval of the Accepting Authority. Bidders shall have the right to refuse to grant such an extension without forfeiting their Earnest Money, but those who are willing to extend the validity of their bid shall be required to provide a suitable extension of Earnest Money.

Post qualification of Bidders: If bidders have not been pre-qualified, the implementing agency shall determine whether the bidder whose bid has been determined to offer the lowest evaluated cost has the capability and resources to effectively carry out the contract as offered in the bid. The criteria to be met shall be set out in the tender documents, and if the bidder does not meet them, the bid shall be rejected. In such an event, the implementing agency shall make a similar determination for the next lowest evaluated bidder.

Award of Contract:

(a) Implementing agency shall award the contract, within the period of the validity of tenders, to the bidder who meets the appropriated standards of capability and resources and whose bid has been determined (i) to be substantially responsive to the tender documents and (ii) to offer the lowest evaluated cost.

(b) Single offers received in response to the call for open tenders should also be considered for award if it is determined that publicity was adequate, bid specifications/conditions were not restrictive or unclear and bid prices are considered reasonable.

Repeat Orders

Purchases under open tender method may be increased over the quantity originally ordered as per the prevailing State procedure by repeat orders after recording reasons, provided that such orders shall not be given after a period exceeding one month from the date of the expiry of last supply made and also subject to the condition that prices have since not reduced and purchases were not made on urgent basis.Rejection of All Tenders

(a) Tender documents usually provide that implementing agency may reject all tenders. Rejection of all tenders is justified when there is lack of effective competition, or tenders are not substantially responsive. However, lack of competition shall notbedetermined solely on the basis of the number of bidders. If all tenders are rejected,the implementing agency shall review the causes justifying the rejection and considermaking revisions to the conditions of contract, design and specifications, scope of the contract, or a combination of these, before inviting new tenders.

(b) If the rejection of all tenders is due to lack of competition, wider advertising shall be considered. If the rejection is due to most or all of the tenders being non-responsive, new tenders may be invited.

(c) Rejection of all tenders and re-inviting new tenders, irrespective of value, shall be referred to the competent authority for approval.

7.2Limited Tender

(a) Goods including office equipment, furniture, computers, weighting scales, reading material, supplementary nutrition, hiring of vehicles, PSE kits, medicine kits and operation and maintenance of equipment estimated to cost upto the financial ceiling prevailing in States or less per contract may be procured under contracts awarded under the Limited Tender System.

(b) Limited Tender is a procurement method based on comparing price quotations obtained from several suppliers, usually at least three to ensure competitive prices. As far as possible, Limited Tender enquires will be issued to those firms, which are borne on the list of approved contractors/suppliers.

(c) The requests for quotations shall be made indicating the description specification and quantity of the goods, as well as desired delivery time and place. Quotations shall also be obtained by telex or facsimile. The evaluation shall follow sound public or private sector practices. The terms of the accepted offer shall be incorporated in a purchase order.

Steps for Limited Tender Procurement

(a) Identifying items for purchase,

(b) Laying down specifications for the items identified,

(c) Estimating total numbers and costs of items identified based on approximate unit costs.

(d) Identifying likely agencies from whom quotations can be invited (minimum three, but 8-10 agencies would ensure more competitive rates),

(e) Obtaining approvals of competent authority for items to be purchase along with specifications, estimated costs and agencies from whom quotations should be invited,

(f) Issuing letters of invitations based on approvals,

(g) Processing quotations received, obtaining orders to competent authority for placing of orders for supply.

(h) Issuing letters placing orders for supply, specifying period in which the delivery is to be completed,

(i) Ensuring inspection of items at the point of production (before delivery) for proper quality control. The inspection is required to be undertaken by a group constituted by the implementing agency,

(j) Ensuring timely supply of items, and

(k) Making payments after delivery in satisfactory condition.

7.3 Single Tender

(a) A Single Tender system may be adopted in case of articles which are specifically certified as of propriety nature or in cases where only a particular firm is the manufacturer of the articles demanded. Goods including books, teaching materials, child-learning items and operation and maintenance of equipment etc may be procured under contracts awarded under the single tender system.

(b) The single tender system without competitions shall be an appropriate method under the following circumstances:

(i) Extension of existing contracts for goods awarded with the prescribed procedures, justifiable on economic grounds,

(ii) Standardization of equipment or spare parts to be compatible with existing equipment may justify additional purchases from the original supplier

(iii) The required item is proprietary and obtainable only from one source,

(iv) Need for early delivery to avoid costly delays, and

(v) In exceptional cases, such as in response to natural disasters.

(vi) Rate contracts of Directorate General of Supplies and Disposals (DGS &D) and of the State Governments shall also be an appropriate method under Single Tender system

7.4Procurement without Tender

Purchase of items or group of items estimated to cost less than the financial ceiling prevailing in the State on each occasion may be made without inviting tenders/quotations, provided this does not involve any splitting of purchases.

The purchase would be carried out on the basis of a certificate recorded by the competent authority in the following format :-

I,.., am personally satisfied that the goods purchased are of requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.

7.5 Procurement through Local Community

A Purchase Committee involving community and the Angawadi Worker shall be constituted at the village level. The Committee would consist of three Members. The composition of the Committee would be decided by the State Govts. on the pattern such Committees already existing at the grass root level. The Committee would be responsible for purchase of articles or group of articles to be used at the Anganwadi Centre estimated to cost less than the prescribed financial ceiling. The State Govts. would fix financial ceilings for such Committees as per the State Govt. Procurement Rules.

The Committee would survey the market to ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier. Before recommending placement of the purchase order, the Members of the Committee will jointly record a certificate indicating, the Purchase Committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite quality and specification, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question.

8. METHODS OF PROCUREMENT FOR MAJOR ITEMS UNDER ICDS

8.1 Medicine Kit

As a vital input to provide the essential services of health checkup and referral services under ICDS, each AWC is provided every year with a Medicine Kit consisting of easy to use and dispensable medicines to remedy common ailments like cough and common cold, skin infections etc. The tentative cost of each kit is fixed at Rs. 600/- per annum. The State Govt./UTs are responsible for procurement and distribution of medicine kits in the AWCs on annual basis.

The list of medicines in the Medicine Kit presently supplied and the technical specifications of these medicines, as finalized in consultation with Ministry of Health and Family Welfare, Government of India is at Annexure-I. The State/UTs may continue with the same kit or make modifications in the kit to cater to the area specific needs in consultation with the Health Department of the State Government. However while making modifications, it may be ensured that the kit is simple and the medicines are dispensable by the AWWs.

Government of India favours the propagation and strengthening of the Indian Systems of Medicines i.e. Ayurveda, Unani, Siddha etc. Apart from the Allopathic medicine as suggested in Annexure-I, the State Governments have also been advised to include medicines belonging to Ayurveda or other Indian Systems of Medicines in the Kit. This should be done in consultation with the Health/ISM&H Department of the State Govt./UTs and should follow standard pharmacopoeia parameters. A list of Ayurvedic medicines as suggested by Secretary, Department of ISM&H, Government of India is enclosed for reference at Annexure-II (detailed guidelines available in DWCD Circular No. 20-1/99 CD-I dated 31st March, 2000).

The Medicine Kits should be procured by State Govt./UTs at the state level by following open tender system and procurement rules of State Govts. and guidelines provided by MWCD in previous sections. It should be noted that Government has approved (vide Department of Chemical and Petro-Chemical OM No. 50013/1/2006-SO(PI-IV) dated 7th August, 2006) grant purchase preference exclusively to pharma CPSEWs and their subsidiaries in respect of 102 specified medicine manufactured by them. The salient features of the Purchase Preference Policy (PPP) are at Annexure-III. The State Government should take advantage of the PPP while procuring medicines. Further, as per the extant Government Policy, the Central Public Sector Undertaking (CPSU) gets Purchase Preference upto 10% over the large scale private units (vide Department of Public Enterprises OM No. DPE 13(12)/2003-Finance Vol.II dated 18/7/2005. The advantage of these rules should be taken while procuring Medicine Kits.

8.2 Pre-school Education Kit

The Pre-school Education in anganwadi centres is provided through non formal and play way method. It is a crucial component of the ICDS package and aims at psycho-social, cognitive, conative and affective development of child in a cogent and holistic manner.

Recognising the two fold significance of early childhood education its direct influence on development of the child through early stimulation and its potential contribution to the goal of universal elementary education, the Government of India, for the purposes of provision of pre-school material, the young children (0-6 years) have been divided into two broad categories i.e.

(a) Infancy stage (0-3 years)

(b) Pre-school age (3-6 years).

The State Governments have been given the responsibilities to procure and distribute PSE Kits to the anganwadi centres annually within the financial approved norms of Rs. 500/- for each kit per year (Detailed guidelines in DWCD circular number 5-2/2000 CD I dated 7th July, 2000).

The Pre-school kits should be procured each year for all operational anganwadi centres in the State/UTs @ one kit for one anganwdi centre. The State Governments are required to procure kits of two types one for 0-3 years age groups (Kit A) and other for 3-6 years age group (Kit B). Each anganwadi could be provided one or other kit in alternate years.

The items in the kit should be multiple in terms of possible play activities and concepts, durable, safe for children (non toxic and without sharp edges (manipulative, culturally and environmentally relevant, possessing fund value, cost effective, easy to maintain and store and conducive to creativity and problem solving. The State/UTs Governments could consult experts on Early Childhood Education, SCERTs etc. for finalization of items and their specifications in pre-school kit depending upon the specific local needs. A suggestive list of items in the Pre-School Education Kit is at Annexure-IV.

The pre-school kit should be procured by the State Government/UTs administration at the State/UTs level or at the district level by the open tender method following the procurement, purchase procedure as per the financial limit of the concerned State Government/UTs and guidelines provided in previous sections.

8.3 Information, Education and Communication

The objectives of the IEC and Community Mobilization Component is to create awareness and build up image of ICDS programme; stimulate demand for ICDS services; affect and sustain behavioural and attitudinal changes in child caring, nutrition and health status; and muster and sustain community participation. The activities for implementation of the IEC Component include house to house visits, project and district level seminars, meetings, regular nutrition and health education sessions with Mahila Mandals, distribution and use of slides, flash cards, flip charts, books, posters, hoardings, newspaper advertisements, folk media, puppet shows, audio-visual, electronic media etc.

The financial provision available for the component is Rs. 25,000/- P.A. per ICDS project excepting in the UTs of Lakshdweep, Dadra & Nagar Haveli and Daman & Diu where it would be Rs. 50,000/- P.A. per Project since these UTs have only 1, 1 and 2 Projects respectively.

The State Govts./UTs are required to devise suitable strategy and implementation plan for IEC Component in the State and the lump-sum provision available under the component based on the number of ICDS Project may be divided amongst projects/districts and state depending on priorities, needs and requirements within overall State/UT limit.

The methods of procurement would vary from open tender to purchase without tender depending upon the financial value of each procurement and would be carried out by following the State Govt. Rules and Guidelines provided in the previous sections.

8.4 Equipment and Furniture

The Scheme has a provision of Rs. 5,000/- per AWC, Rs. 91,700/- each for CDP Office and District Cell and Rs. 60,000/- for State Cells having less than 50 Projects and Rs. 1,20,000/- for more than 50 Projects, non-recurring one time grant for the purchase of furniture and equipment. These items may be procured by limited tender system/open tender system depending upon the value of each procurement.

8.5 Computers (Hardware, Software and accessories)

(a) Most States have formulated policies on procurement and maintenance of computer system in the State. The State Implementing Agency should follow these procedures for the procurement of computers and its accessores. The procurement procedure may be one of the following:-

(i) Limited Tender System Tenders are obtained from the State approved list of vendors.

(ii) Procurement through State Electronic Corporations /TT Department/other State agencies provided they follow State Governments prescribed procedure.

(iii) Open Tender System

(b) Technical Specification should be very clear with reference to the latest technology available in the market.

(c) Purchase Committee should be formed in which an expert from the IT Department of the State should be a member

8.6 Printing work

(a) For any printing work, the technical specification regarding the quality of paper for text and cover, size of the book/article, number of pages etc. should be specified while inviting tenders/quotations.

(b) Depending on the value of the work involved, the method of procurement shall be one of the following:-

(i) Rate contract for printing approved by the State Government

(ii) Limited Tender System minimum three quotations should be obtained from the approved list of printers. The authenticity and credibility of the printer should be ascertained before giving the work orders.

(iii) Open Tender System8.7ContingencyContingency is provided under ICDS Scheme to AWCs, CDP Offices, District Programme Offices and State/UTs ICDS Cells for meeting the contingent and operating expenses. The Scheme provides for contingencies upto Rs. 600/- per AWC/PA for items like soaps, towels, cleaning material etc. A list of Basic Equipment of Anganwadi Centres under ICDS Programme is at Annexure-V. As per the Guidelines issued by MWCD (No.1-2(iv)/2000/CD-I dated 1.9.2000), the State/UT Administration may reallocate the contingent amount at various levels keeping in mind the requirement and specific needs. The contingency amount may also be utilized for replacement of weighing scales and other equipment at all levels. If it is absolutely essential, this amount may also be utilized for purchase of new equipment like computers, internet connection, fax machine, xerox machine and essential furnitures.

The procurement under this category may be done at the state/district/block/ village level by following limited tender/without tender or through local community depending upon financial value of a single procurement and following procurement rules as applicable in the state and guidelines indicated in the previous sections.

8.8Supplementary Nutrition

Supplementary Nutrition is given to children below six years of age and to nursing and expectant mothers. Special attention is required to be paid to the delivery of Supplementary Nutrition to children below 3 years of age. The type of food (milk, pre-processed or semi-processed food or food prepared on the spot from locally available food stuff) will depend upon local availability, type of beneficiary, location of project, administrative feasibility etc. Supplementary Nutrition is being provided in the form of (i) on the spot cooked meal (ii) take home ration and (iii) ready to eat food. On average, supplementary nutrition should be provided to the extent of 300 calories and 10gms. of protein per child, 500 calories and 15-20 gms. of protein per pregnant woman/nursing mother and 600 calories and 20 gms. of protein for severally mal-nourished child for 300 days in a year. The financial norms per beneficiary are: 0-6 years Children - Rs 2/child; mal-nourished children - Rs. 2.70/ child; pregnant and lactating mothers - Rs. 2.30 per beneficiary.

The Honble Supreme Court has issued directions that the Contractor shall not be used for supply of nutrition in Anganwadis and preferably ICDS funds shall be spent by making use of Village Community, Self-Help Groups and Mahila Mandals for buying of grains and preparation of meals. The State Govts. would therefore be required to identify appropriate Groups/Mahila Mandals at local level to provide Supplementary Nutrition as per the prescribed nutritional and financial norms.

9POST-REVIEW BY GOVERNMENT OF INDIAThe contracts awarded on procurement of goods / items and services by the programme implementing agencies in the States will be post-reviewed by MWCD, GOI on a random basis. For this purpose, all documents relating to the award of contract should be retained by the project implementing agencies and made available to the review team of GOI as and when required.

10.MIS-PROCUREMENT

The goods and services that have not been procured in accordance with the prescribed procedures outlined in these guidelines or other State Government procurement procedures, as the case may be, shall be treated as mis-procurement. The expenditure incurred on such procurement shall not be eligible for financing from ICDS funds.

11.COMPLAINT HANDLING MECHANISMIn order to deal with complaints received from contractors/suppliers effectively, a complaint handling mechanism should be available at the national level as well as at State level, and immediate action initiated on receipt of complaints to redress grievances. All complaints should be dealt with at a level higher than that of the level at which the procurement process is being undertaken and the allegations made in the complaints should be thoroughly enquired into. If found correct, appropriate remedial measures should be taken by appropriate authorities.

In case any individual staff is found responsible, suitable disciplinary proceedings should be initiated against such staff under the Civil Service Conduct Rules at national level or the Classification, Control and Appeals Rules at the State level as the case may be. The receipt of any illegal gratification by staff should be considered as misconduct, and should result in disciplinary proceedings against such staff, in addition to penalties under the law.

The existing provisions under the law, the discipline and appeal rules and the powers of the Central/State Vigilance Commission should be strictly followed to deal with the complaints of contractors/suppliers.Annexure-I

Medicine Kits

S.No.Product NamePharmaceutical StandardStrengthDosage FormQty.Reqd.in one Unit PackLabelling InstructionSize of Unit PackSpecification

a.Paracetamol Tablets IPIndian (IP) Pharmacopoeia 1996500 mgTablets500 tabs.x 1 JarAs per tech. specificationJar dia=82 mm (outer) + 1mm Jar height with cap = 102 mm + mm (outer)500 tabs. To be packed in a white HDPE Jar of 460 ml OFC with a label printed on 75 GSM + 5% Indian chromo art paper in 2 colours with size : 100x55 mm + 1 mm

b.Paracetamol Syrup IPI P 1996125 mg/5 mlSyrup500ml x 1 bottle As per tech specificationBottle dia = 77 + 1 mm (outer) Bottle height with cap + 165 + 2 mm (outer)500 ml Syrup to be packed in a white HDPE bottle of 550 ml OFC with a label printed on 75 GSM + 5% Indian Chromo art paper in 2 colours with 100 = 60 mm + 1 mm size

c.Mebendazole Tabs IPI P 1996100 mgTablets450 tabs.As per tech. specificationJar dia=55.5 + 1 mm (outer) Jar height with cap = 56+2 mm (outer)450 tabs. To be packed in a white HDPE Jar of 115 ml OFC with a lable printed on 75 GSM+5% Indian Chromo art paper in 2 colours with size 90x28 mm + 1 mm

d.Banzyl Benzoate Application IPI P 199625% w/wLotion500 ml x 1 bottleAs per tech. specificationJar dia = 77 mm + 1 mm (outer) Jar height with cap = 165+2 mm (outer)Same as Paracetamol Syrup i.e. S.No.2 only colour of bottle will be blue to avoid mix-up

e.Chloramphenicol Eye OintmentI P 19961% w/wEye Ointment3.5g x 10 tubesAs per tech. specification65x27x82 (ht) mm+1mm3.5g ointment packed in Aluminium collapsible tube with white HDPE cap printed in 2 colours with base colour white and such 10 tubes packed in a 300+5% GSM white duplex board printed in 2 colours

f.Sulphacetamide Sodium Eye Drops IP 10% w/wI P 199610% w/wEye drop10 ml x 6 vials As per tech. specification74x50x80 (ht) mm+1mmEye drops packed in 10 ml amber vial with the help of rubber plug and Al seal 20 mm and a label made up of 75+5% GSM white Indian chromo art paper printed in 2 colours pasted on it with size 75x25 mm + 1 mm with a sterilized eye dropper packed in a LDPE polybags.

Therefore each carton will have 6 vials of eye drops with 6 droppers and carton will be made up of 300 + 5% white duplex board printed in 2 colours.

g.Gention Violet 2% w/v-2% w/vSolution External Application1 bottle x 100mlAs per tech. specificationDia of bottle = 49+1.0 mm (outer) Height of bottle (after sealing) = 108+2 mm100 ml solution packed in amber glass bottle UPS type-III with a rack size of 25 mm, with a ODC, 120 ml + 5 ml and sealed with a silver colour ROPP cap 25 mm with a label printed on 75+5% GSM Indian chromo art paper in 2 colours with size 80 x 45 mm + 1 mm

h.Fovidone Iodine OintmentUSP5% w/wOintment External Application5gmx5tubesAs per Tech. specification90x27x35 (ht) mm + 1 mm5 g. ointment packed in a Aluminium collapsible tube internally lacquered with a white HDPE cap with a piercing pointer inside. Tube to be printed 2 colours on white ground and such 5 tubes packed in a 300 + 5% GSM white duplex board printed in 2 colours.

i.Absorbent 400 Cotton Roll of gmsI P 1996As per I P 1996Absorbent Cotton400 gm x 2 rollsAs per tech. specification-Packing in rolls of 400 gms of a continuous lap. With light weight paper running under the entire lap, folded over the edges rightly and evently rolled enclosed and sealed in a well closed container. Each roll shall be legible marked with manufactures name, month and year of manufacturer and its weight and NOT STERILISED

j.Cotton BandageCotton bandage shall strictly confirm to Schedule F(II) of Drugs and Cosmetics Act 1940 and rules , 1945 as to IS. 863-1985 (second revision). Cotton yarn used for manufacture of Cotton Bandage shall be as per IS : 171-1985. Cloth shall be woven in plain weave with well formed. Selvedge and free from weaving defects from. It shall also be free filling sizing or dressing material and shall be bleached and shall be cut to form bandages of size 5 cm width x mtrs. Length---5cm x 5 mtrs. X 1 dozenAs per tech. specification-Each bandage of 5 cm x 5 mtres. Shall be made into rolls, neatly and securely wrapped withblue brown paper and glued leaving the ends uncoverd. Such 12 rolls shall be securely wrapped in a draft paper and glues and again wrapped in a layer of 40 micron thick polythene fill. Packet of bandage shall be legibly marked with manufactures name, month and year of manufacturer, length (m). width (cm) and NOT STERILISED.

k.Booklet in Regional LanguageSample brochure has to enclosed and the bidder enclosed the same duly printed and written in Regional Language in each kit.

Annexure -IIList of Ayurvedic Medicines as suggested by

Department of ISM&H, Government of India for

inclusion in the Medicine Kit for Anganwadi centres

under ICDS SchemeS.No.Name of the MedicineTherapeutic Use

1.Puranavadi Mandoor (Tablet)For anaemia, oedema during pregnancy etc.

2.Saubhagya Shunthi (Granules)For post-delivery uterine problems, e.g. body pain, and abdominal problems, lactation related problems etc.

3.Kesharbala TailTalla (Body massage oil) for strengthening the abdominal muscles of the mother, body massage, body ache, etc.

4.Ayush Ghutti (Tablet)For common ailments of babies like indigestions, intestinal discomfort, etc.

5.Bal Rasayana (Table)For nutritional supplements of proteins calcium and essential minerals for children of to 5 years age.

6.Ark Jiwan (Liquid)For promotion of appetite, indigestions, etc.

7.Ark PudinaFor intestinal discomfort, pain, etc.

Annexure-III

Preferential purchase policy for certain medicinesThe salient features of the Preferential Purchase Policy (PPP) are as under:

i) PPP in respect of a maximum of 102 medicines would be applicable to purchases made by Ministries/Departments, PSUs, Autonomous Bodies, etc. of the Central Government. It would be valid for a period of five years.

ii) This would also be applicable to purchase of 102 drugs made by State Governments under health programmes which are funded by Government of India. (e.g. purchases under National Rural Health Mission etc.)

iii) PPP will extend only to Pharma CPSEs and their subsidiaries (i.e. where Pharma CPSEs own 51% or above shareholding).

iv) It would be applicable to a maximum of 102 medicines. The list of 102 medicines would be reviewed and revised by Department of Chemical & Petrochemicals as and when required taking care not to include any item reserved for SSI units.

v) The Purchasing Departments/PSUs/autonomous bodies etc. of the Central Government may invite limited tenders from Pharma CPSEs and their subsidiaries or purchase directly from them at NPPA certified/notified price with a discount up to 35 per cent.

vi) The purchasing departments would purchase from Pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule M of the Drugs & Cosmetic Rules. If no Pharma CPSE is forthcoming to supply these 102 medicines, the purchasing departments would be at liberty to purchase from other manufacturer.

vii) If the Pharma CPSEs or their subsidiaries which has the benefic of PPP, fail to perform as per the purchase order, they would be subject to payment of liquidated damages or any other penalty included in the contract.

viii) The medicines covered under Drug & Price Control Order (DPCO) would be supplied at the rates fixed by National Pharmaceuticals Pricing Authority (NPPA) rates minus discount up to 35 per cent.

ix) In case of medicines not covered under DPCO, prices would be got certified from NPPA, only for the limited purpose of supply to Central Government Departments and their Public Sector Undertakings, autonomous bodies etc. On the certified price, Pharma CPSEs and their subsidiaries would provide discount up to 35 per cent.

x) The Preferential Purchase Policy (PPP) as contained in Department of Public Enterprises OM No. DPE.13(12)/2003-Fin.Vol.II dated 18.7.2005 would not be applicable to Pharma CPSEs.

Before considering any such purchase preference, the purchase organization should check the latest directives in this regard for necessary action. Purchase Preference provision shall invariably be part of the Notice Inviting Tender (NIT).

Annexure-IVList of Suggestive Material for PSE Kit in ICDS

1. Fit in Puzzle One Set

2. Multi use concept set One Set

3. Magnet One Set

4. Toy Wheel Assembly One Set

5. Human Parts One Set

6. Shape Board One Set

7. Elephant One Set

8. Fish in Bowl One Set

9. Built up Beakers One Set

10. Bell (brass) One

11. Rubber Ball One

12. Coloured Counting Beads One Set

13. Circle Stock One Set

14. Flannel Board One

Annexure VList of Items / Equipment for Anganwadi Centre

A number of small items/equipment will be needed for each Anganwadi centre for educating non-formal preschool education and supplementary nutrition feeding activities.

Items for general use

Small mats or durries

One closed self (for storing equipment)

One or two wooden racks

Low wooden chair and table for the Anganwadi worker

First Aid Box with supplies of basic drugs for Common Ailments(Medicine Kit)

A National Flag

One locally made mud Vessel (with a tap and a lid )for keeping drinking water

Files , register and records

Health Cards

}

Mud Wall area for painting } no costKitchen Equipment

Tumblers , plates and spoon,

Two to three vessels with lids of cooking

Kerosene wick stove

Bathroom Equipment

Two buckets or vessels or storing water

Two mugs

Two Soap containers

Four towels

Disinfectant fluid

Brooms, brushes and other cleaning material

Indoor Play Equipment

Wooden building blocks of different sizes

Counting frames

Paints, brushes and coloured chalks sticks

One dholak (beating drum)

Three scissors

PAGE 6