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PROCUREMENT POLICY

PROCUREMENT POLICY

introduction

Jeeva Jyothi is committed to efficient, transparent, and accountable procurement processes that ensure the judicious use of resources in pursuit of its mission. This Procurement Policy supports the principles laid out in the organization’s Financial Policy, ensures compliance with Indian legal standards, donor requirements, and reflects best practices in nonprofit management.

Objectives

  •  Ensure fairness, transparency, and accountability in all procurement activities
  •  Procure goods, works, and services at the best value for money
  •  Prevent fraud, favoritism, and conflicts of interest
  •  Comply with financial regulations, donor requirements, and Indian laws

Guiding Principles

  • Transparency: All procurement shall be documented, traceable, and accessible for audit.
  •  Value for Money: Focus on cost-effectiveness, quality, and sustainability.
  •  Competition: Promote open and fair competition through quotations or tenders.
  •  Accountability: Responsibilities shall be clearly defined with oversight and approvals.
  •  Ethical Practice: No staff shall accept personal gifts, bribes, or commissions from vendors.

Scope

This policy applies to the procurement of: – Goods: equipment, supplies, materials, etc. –
Services: consultancy, maintenance, training, printing, etc. – Works: small construction, repairs, or renovations

Roles and Responsibilities

Role

Responsibilities

Managing Trustee

Final approval for high-value procurement

Finance

Budget verification, payment processing

Procurement Committee

Evaluation and approval of bids above threshold

Program/Department

Initiating requests, specifications, quality checks

t Heads

Procurement Committee

Admin Officer

Coordinating procurement, vendor communication, documentation

Procurement Thresholds and Methods

Procurement Value (INR)

Procurement Method

Approval Level

₹0 – ₹10,000

Direct Purchase with cash bill

Department Head

₹10,001 – ₹50,000

Minimum 2 quotations

Program Head + Finance

₹50,001 – ₹2,00,000

Minimum 3 quotations

Procurement Committee

Above ₹2,00,000

Open Tender / RFP

Managing Trustee + Board Approval

 

Note:  Exceptions (e.g., emergency procurement) must be justified in writing and confirmation by the Executive Director.

Procurement Process

Needs Assessment: Request shall be initiated by the concerned department with specifications and quantity.
Budget Confirmation: Finance verifies availability of budget as per the Financial Policy.
Quotation/Tender Process:

o Quotations or tenders shall collected as per thresholds.
o Procurement Committee evaluate based on cost, quality, reliability, and delivery.

Vendor Selection: Selection shall be justified in writing and approved by competent authorities.
 Purchase Order (PO): Issued for all purchases above ₹10,000.
 Delivery & Inspection: Physical verification and quality check shall be conducted department.
 Invoice Verification & Payment: Finance processes payment shall be upon delivery confirmation and approval.
 Record Keeping: All procurement documents shall be securely filed and retained for 7 years.

Vendor Management

Approved Vendor List shall be maintained (updated annually)
 Vendor Evaluation shall be based on:
o Price
o Quality of goods/services
o Timeliness
o Compliance with contracts

 Blacklisting: Vendors involved in fraud, misrepresentation, or poor service will be blacklisted.

Conflict of Interest

  • Employees must disclose any personal or financial interest in the procurement process.
  •  Staff involved in procurement shall not have a relationship with the vendor.
  •  Violation will result in disciplinary action as per the HR and Financial Policies.

Emergency Procurement

In case of urgent needs (e.g., disaster response), the Managing Director may
authorize fast-track procurement with:
o Written justification
o Immediate reporting to the Board
o Documentation of process followed

Compliance and Audit

 This policy shall be audited annually in line with the Financial Policy.
 All procurements subjected to internal and external audits.
 Non-compliance thatl result in investigation and appropriate disciplinary or legal action.

Policy Review

This Procurement Policy shall be reviewed annually or when required due to changes in laws, donor terms, or organizational needs.

Approval and Implementation

This policy is approved by the Board of Directors of Jeeva Jyothi and is effective from
7.6.2025

V. SUSAIRAJ – MANAGING TRUSTEE