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Quiz 14 — GFR 2017 & GeM: Procurement, Sanctions & Accounts

60 practice questions on gfr 2017 & gem: procurement, sanctions & accounts for the UPSC Combined Recruitment Test for Vice Principal and Principal, Directorate of Education, Delhi. Sat blind and scored on the real formula. This set is free.

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Q34

Match the method of procurement in List-I with the situation for which the General Financial Rules, 2017 provide it in List-II and select the correct answer using the code given below:

List-I (Method) List-II (Situation)
A. Two-bid system (Rule 163) 1. Only one known manufacturer, an emergency, or standardisation with existing equipment
B. Two-stage bidding (Rule 164) 2. Detailed specifications cannot be framed without technical inputs from bidders, or the item is subject to rapid technological advances
C. Single Tender Enquiry (Rule 166) 3. A detailed description is feasible, the market is competitive and the award criteria can be expressed in money
D. Electronic reverse auction (Rule 167) 4. High-value plant and machinery of a complex technical nature, with technical and financial bids sealed in separate covers and submitted together
  1. (a) A-2, B-4, C-1, D-3
  2. (b) A-4, B-2, C-1, D-3
  3. (c) A-4, B-3, C-1, D-2
  4. (d) A-2, B-4, C-3, D-1
Answer (b).

A-4, B-2, C-1, D-3. Rule 163: "For purchasing high value plant, machinery etc. of a complex and technical nature", technical and financial bids are sealed in separate covers inside one bigger cover; financial bids of only the technically acceptable offers are opened. Rule 164: two-stage bidding where detailed specifications cannot be formulated "without receiving inputs regarding its technical aspects from bidders", where the subject is "subject to rapid technological advances or market fluctuations", for research contracts, or where the bidder must do a detailed survey; price bids come only at the second stage. Rule 166: single source where only one firm manufactures the goods, in an emergency, or for standardisation. Rule 167: reverse auction where a detailed description is feasible, a competitive market exists and the criteria "are quantifiable and can be expressed in monetary terms". (a) swaps two-bid and two-stage — the near-identical names are the trap. (c) swaps two-stage bidding and reverse auction. (d) swaps both pairs.

Q46

Match the rule on procurement of services in List-I with what it provides in List-II and select the correct answer using the code given below:

List-I (Rule) List-II (Provision)
A. Two-bid system for consultancy proposals (Rule 187) 1. Selection by the Competent Authority in consultation with the Financial Adviser, with detailed justification on record
B. Least Cost System (Rule 193) 2. Technical and financial proposals sealed separately, the technical proposals being opened first
C. Single source selection of a consultant (Rule 194) 3. Natural continuation of previous work, an emergency, or only one consultant having the requisite expertise
D. Nomination for a non-consulting service (Rule 204) 4. Assignments of a standard or routine nature, such as audits and engineering design of non-complex works
  1. (a) A-2, B-3, C-4, D-1
  2. (b) A-1, B-4, C-3, D-2
  3. (c) A-2, B-4, C-3, D-1
  4. (d) A-4, B-2, C-1, D-3
Answer (c).

A-2, B-4, C-3, D-1. Rule 187: proposals "should ordinarily be asked for from consultants in 'Two bid' system with technical and financial bids sealed separately", the technical proposals being opened first. Rule 193: the Least Cost System suits "assignments of a standard or routine nature (such as audits and engineering design of non-complex works)"; there is no weight for the technical score, and the lowest-cost technically qualified proposal wins. Rule 194: single-source selection only in exceptional cases such as "natural continuation of previous work", an emergency, or where "only one consultant has requisite expertise". Rule 204: a non-consulting service may be procured from a specifically chosen contractor by "the Competent Authority in the Ministry or Department … in consultation with the Financial Adviser", with detailed justification. (a) swaps the Least Cost System and single-source selection. (b) swaps the two-bid system and nomination. (d) scrambles all four.

Q57

Consider the following statements about utilisation certificates under Rule 238 of the General Financial Rules, 2017: 1. For non-recurring grants to an institution or organisation, the certificate is in Form GFR 12-A and should contain an output-based, not input-based, performance assessment. 2. Where the certificate is not received from a grantee within the prescribed time, the Ministry may blacklist the grantee from future grants or other financial support. 3. No utilisation certificate is needed where the grant reimburses expenditure already incurred on the basis of duly audited accounts, the sanction letter saying so. 4. The certificate for a non-recurring grant must be submitted within six months of the close of the financial year. Which of the statements given above are correct?

  1. (a) 1 and 2 only
  2. (b) 2, 3 and 4 only
  3. (c) 1, 2 and 3 only
  4. (d) 1, 2, 3 and 4
Answer (c).

Statements 1, 2 and 3 are correct. Rule 238(1): a certificate of actual utilisation "in Form GFR 12-A" is insisted upon for non-recurring grants; it "should contain an output-based performance assessment instead of input-based performance assessment"; and where it is not received in time, the Ministry "will be at liberty to blacklist such Institution or Organisation from any future grant, subsidy or other type of financial support". Rule 238(3): certificates "need not be furnished in cases where the Grants-in-aid / CFA are being made as reimbursement of expenditure already incurred on the basis of duly audited accounts", the sanction letter saying so. Statement 4 is wrong: the certificate is due "within twelve months of the closure of the financial year"; six months is the deadline for the performance-cum-achievement report under Rule 242. (a) leaves out the reimbursement exemption. (b) and (d) accept the six-month deadline, which mixes up Rules 238 and 242.

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