TPC & DELIGATION

OF POWERS

LAKSHMAN SINGH
JWM/OFILKN

Procurement Methodology
The following steps are involved in Local purchase of
an item:i)
Scrutiny of SHIS or computerized MPS. This
becomes an authority for taking procurement
action.
ii)
Taking decision whether procurement to be made
by open tender or limited tender or single tender.
iii) Preparation of vender list to whom T.E. are
required to be issued in case limited or single T.E.
These are issued to registered contractors only.
iv) Issue of TE:- In case of LTE or STE the tenders
are issued directly to the contractors. In case of
open TE , it is sent to DAVP for advertising in
news papers.

Procurement Methodology
v) Opening of tenders on scheduled date and time.
vi) Preparation of CST and Recommendation of user
to be obtained.
vii) Preparation of brief of the case and circulated to all
members of TPC.
viii) The dates of the meetings of TPC should be
notified sufficiently in advance so that the briefs and
relevant files can be studied by the committee members

TPC
Tender

purchase Committees (TPCs) have

been constituted under orders of
OFB(OFB Order no.359/BS
dt.21.02.1989) as amended from time to
time.
Scrutiny of tenders for purchase of stores
at Headquarters as well as factories
detailed hereunder:-

TPC
All

Members should be made to resolve

differences through personal discussion instead
of making to and fro reference in writing. Where
it is considered necessary to keep record of such
discussion, agreed minutes should be drawn up
and recorded.

Financial

consultation is distinct from financial

concurrence

TPC
The

basic purpose in delegating powers is

to enable the factories to keep readiness
the inputs and achieving the production
targets without any let up or hindrance.
The exercise of powers in consultation
with finance is intended to bring in
financial expertise in the decision making
process.

TPC at OFB
Leval

I
For procurement
of store above
Rs. 50 Crores
RE and FE.&
above Rs. 3
Corers Re for
Single Tender/
Proprietary
items

Chairman/OFB

Chairman

Member/P &MM

Member

Member/Finance/ Controller of
Member
Finance*
Member/Operating Division
Or
Addl.DG/OEF (For OEF Hqrs. Member
Cases)
DDG/Operating Divisiion

Member

DDG/Director/MM/PV (VFJ &

GIF Cases)

Secretary

*C of F will represent the Committee only

in the absence of Member/ Finance.

TPC at OFB

(B)Level

II
(A) For Procurement
of Stores value
between Rs. 35 Crores
and Rs.50 Crores. RE
&FE
(B) In The case of
Single Tender and
proprietary Items, the
Committee exercise
the financial power
between Rs.2 Crores
to Rs. 3 Crores.

Member/P &MM

Chairman

Member/Finance or his
representative

Member

At C of F/JCF Level

Member

Member/Operating
Division OR
Addl.DG/AV (For AV Gr.)
OR Addl. DG/OEF (For
OEF Group)

Member

DDG/Operating Division

Member

DDG/Director/MM/PV
(VFJ & GIF Cases)

Secretary

TPC at OFB

(C ) Level III
(A) For Procurement of
Stores valued between
Rs. 20 Crores and 35Rs.
Crores
(B) Upto Rs. 2 Crores
in case of Procurement
of Single tender and
Proprietary items.

Member/Operating
Division OR
Addl.DG/AV(for AV Gr.)
OR
Addl.DG/OEF (For OEF)

Chairman

Controller of Finance/ JCF Member

DDG/Operating Division

Member

Director/.Director/MM/AV Secretary
/OEF/PV (VFJ & GIF
Cases)

TPC at Factories

Level I
For purchases of
stores/ components
etc. exceeding Rs. 5
Crores & up to 20
Crores in each case.

GM

Chairman

AGM/Jt.GM in
Charge of
Procurement

Member

Other Concerned
Officers including
QC

Member

C.O.A (Fys.) /JCA

(Fys).

Member

TPC at Factories
Level

II:

For Purchase
of stores/
components etc.
exceeding Rs.1
Crore and up to Rs.
5Crores in each
case.

AGM/Jt.GM in
Charge of
Procurement

Chairman

Other Concerned
Officers including
QC

Member

JCA (FYs ) / ACA

Member

TPC at Factories
Level III;
For Purchase of
stores/ components
etc. exceeding Rs.
25Lakhs and up to
1Crores in each
case.

Dy.GM in Charge Chairman

of Procurement
Other Concerned Member
Officers including
QC
DCA/ACA/A.O.
(FYs.)

Member

TPC at Factories
(

C) level IV;
For Purchase of
stores/ components
etc up to Rs. 25
Lakhs in each
case.

Works Manager
in Charge of
Procurement

Chairman

Other
Concerned
Officers
including QC

Member

Account
Officer/ (FYs)

Member

Note

Due to unforeseen reasons, if the

Chairman of any TPC is out of station or
on leave, the next senior member of the
relevant TPC may conduct its
proceedings, depending upon the
urgency. However, the minutes of the
TPC meeting will be got approved by the
Chairman of the relevant TPC on his
return.

Preparation of TPC minutes

Minutes

of the TPC proceedings clearly bringing

out its recommendations/ decisions should be
prepared by the Member Secretary immediately
after the committees deliberations are
concluded. He should get all the copies of the
minutes signed by all the Members and distribute
the copies to each Member.
TPC recommendations/decisions will provide
necessary authority for placing orders only after
completion of above formalities.

PREPARATION OF BRIEF FOR TPC

The

brief giving details as per the following

Performa be prepared by the purchase
Officer.
Name of Store:
Whether Single Source/PAC:
Type of Tender Enquiry:
Date of issue & Opening of TE:
No. of Established firms available

PREPARATION OF BRIEF FOR TPC

Whether any established firm &past

suppliers has been excluded from TE? If
so, Reason thereof:
Quotation received from No. of firms:
Tender Quantity:
Quantity in MP Sheet;
Delivery required as per TE:
Likely Value of order;

PREPARATION OF BRIEF FOR TPC

Last Purchase Rate (LPR) giving details of
S.O. and name of
firm:
Lowest Rate Received:

Ist Lowest:
IInd Lowest:

Average proven capacity of firms quoting;

(Based on orders executed in last 3 years
or last 3orders
which ever is covering more period)

PREPARATION OF BRIEF FOR TPC

Requirement:

- End Store, Unit Requirement, Target for

the Year. Requirement for the Year
Total availability since 1st April of the
year:
Total Dues (if any portion of the Dues are
doubtful, the fact should be brought out
with clear reasons including remedial
measures taken)

PREPARATION OF BRIEF FOR TPC

Net deficiency, with justification, if TE

qty. is different:
Date of recommendatory TPC-I
(for cases being sent to OFB) of Factory:
Date of sending the case to OFB:
Remarks:
Recommendation of Fy. TPC-I

CRITERIA FOR TENDER SELECTION

The TPC will give proper weight age to each of the

following factors whiles selecting the offers.
Price quoted
Delivery Promised
Capability and reliability of the concerned firms (s) as
indicated by their past performance and the latest facilities.
Load factor i.e. whether the concerned firm is already
holding orders and if so, how much more they can be
realistically expected to supply within the required DP.
Comparison may also be made with price of similar stores.

DIFFERENCE OF OPNION
In

case where it is not possible to come to

consensus and differences persist amongst
members of TPC, the reasons for dissent of a
member should be recorded. When chairman of
the TPC finds the dissent as unconvincing, he
can overrule such dissent notes after recording
reasons for doing so clearly. Chairman of TPC
shall be fully responsible for such decisions.

After

the decision is taken in such cases, the

matter will be brought to the notice of next
higher authority.

PREPARATION OF TPC MUNUTES:

Minutes

of the TPC proceedings clearly bringing

out its recommendations /decisions should be
prepared by the Member Secretary immediately
after the committees deliberations are
concluded. He should get all the copies of the
minutes signed by all the Members and distribute
the copies to each Member. TPC
recommendations/decisions will provide
necessary authority for placing orders only after
completion of above formalities.

LAKSHMAN SINGH
JWM/OFILKN