1. Purpose
The purpose of this policy is to establish guidelines and procedures to ensure that all procurement of goods and services is conducted in a fair, transparent, efficient, and cost-effective manner, in line with the objectives of the NGO.
2. Scope
This policy applies to all procurement activities carried out by the NGO, including but not limited to materials, supplies, services, works, and equipment, regardless of the funding source.
3. Procurement Principles
- Transparency: Open and clear procedures for procurement.
- Accountability: Proper records and audit trails for all procurement activities.
- Value for Money: Ensure goods/services purchased meet quality standards at the best cost.
- Fair Competition: Equal opportunity for all eligible suppliers.
- Ethics and Integrity: Avoid conflicts of interest and unethical practices.
4. Procurement Methods
Procurement methods vary by value:
- Direct Purchase (Up to ₹10,000): Approved by authorized staff. At least one invoice/quote.
- Request for Quotation - RFQ (₹10,001 – ₹1,00,000): Minimum 3 written quotations required. Evaluation and comparison needed.
- Open Tender/Bidding (Above ₹1,00,000): Public tender process. Evaluation by Procurement Committee.
5. Roles and Responsibilities
- Procurement Officer/Team: Conduct procurement as per policy.
- Program Managers: Identify procurement needs and budget alignment.
- Procurement Committee: Review and approve purchases above specified limits.
- Finance Department: Ensure budget availability and compliance.
6. Vendor Selection Criteria
- Price competitiveness
- Quality of goods/services
- Delivery timelines
- After-sales service
- Reputation and references
7. Conflict of Interest
All staff involved in procurement must disclose any potential conflicts of interest and recuse themselves from relevant decision-making processes.
8. Documentation and Record Keeping
Maintain complete documentation for all purchases including:
- Purchase requisitions
- Quotations and bids
- Evaluation sheets
- Purchase orders
- Invoices and payment records
9. Emergency Procurement
In case of emergencies (e.g. disaster relief), the NGO may bypass standard procedures with documented justification and post-approval by the management.
10. Review and Amendments
This policy shall be reviewed annually or when significant changes occur in the organization’s operations or external regulations.
