The present role of the DGS&D is mainly to conclude the rate contracts to be operated by the consuming departments of the Government for items of common use. DGS&D has been identifying such items, whose anticipated annual purchase by Government Organizations is normally more than Rs. 25 lakhs a year, and bringing such items on rate contract. The purchase policy envisages according preference to indigenously produced stores vis-à-vis imported stores. DGS&D concludes rate contracts with manufacturers, as a matter of policy. Only where manufacturer himself does not market his products, DGS&D entertains sole distributor/ selling agent in lieu. For imported stores, DGS&D may deal with stockiest/ suppliers of imported stores provided they have proven relationship with the foreign manufacturer with guarantee of after sale service and supply of spares. Such entities are required to have adequate infrastructure for after sale service in India.
The DGS&D undertakes pre-dispatch inspection of stores on orders placed by civil indenters on rate contracts. This ensures that stores actually supplied are strictly as per rate contract specifications & are of proper quality. The Quality Assurance Wing of the DGS&D also undertakes inspection of the stores being purchased by Government Departments outside rate contracts on payment of fees, as also inspection for State Governments/ PSUs & other Government Organizations.
The paying authority in respect of the rate contracts is the Chief Controller of Accounts (CCA(S)), Department of Commerce (Supply Division). Subject to adequate safeguards, advance payment up to 98% of the value of the stores is given to the suppliers on submission of bills in the Offices of the CCA(S). The policy of making advance payment facilitates cash flow for the industrial units.
Advantages of The Rate Contract Scheme:
· Facility of bulk rate at lowest competitive price.
· Saves time and effort in tedious and frequent tendering at multiple user locations.
· Enables buying as and when required.
· Just in time availability of supplies reduces inventory carrying cost.
· Availability of quality goods with full quality assurance back up.
· Access to large volume of purchase without going through tendering and follow up at multiple user locations – saving in administrative and marketing efforts and overheads.
· Rate contract lends respectability and image enhancement