Procurements

1. PROCEDURE FOR PURCHASES

The corporation is purchasing the spare parts as per the procedure laid down in Chapter X of HRTC, Accounts Manual. This manual was approved by the B.O.D. in its meeting held on 18.03.1977 and was finally approved by the Financial Department vide letter No. 11/32/74-Fin(Reg.) dated 27.04.1977. The outline of Chapter X of HRTC, Accounts Manual is as under:

a. Store Purchase Committee

At present in HRTC, Head Office the State Government has re-constituted the Store Purchase Committees of HRTC vide notification No 3-15/89-TPT-Loose dated 27.12.2001, 09.05.2005 and notification No TPT-C(17)-2/2009 dated 17 September 2009, consisting of the following members:

OFFICIAL MEMBERS:

1. Managing Director - Chairman
2. Managing Director - Chairman
3. General Manager (Adm.)/ Divisional Manager - Member
4. General Manager (Op.)/Divisional Manager (Op.) - Member
5. General Manager (Tech.) /Divisional Manager (Tech.) - Member Secretary
6. Financial Advisor-cum Chief Accounts Officer -Member
7. Dy. Divisional Manager (Tech.) /Regional Manager (Stores) - Member
8. Textile Engineer/Technical Officer of Controller of stores, HP (Only for the purpose of inspection of livery items)

NON OFFICIAL MEMBERS:

Two non official members are nominated by the State Government from time to time.

TWO UNION REPRESENTATIVES:

Two members nominated by HRTC, Employees Joint Co- ordination Committee.

b. Functions of the Store Purchase Committee are as under:

1. To approve purchase of Stores. Accessories, Machinery etc. required for the Corporation
2. To approve the firms from which purchases are to be made, to conclude rate contracts with the parties.
3. To meet as often as required but not less than once in a month.
4. To decide purchase policy as may be expedient from time to time.

c. The Procedure for approval of sources:

The Stores Purchase Committee has adopted the following procedure for selection of sources:

1. Chassis Manufacturers: The items pertaining to Steering, Gear and Engine components like Crank shaft, Cylinder Head, Crown Wheel, & Pinion are purchased from the Chassis Manufacturers i.e. M/s Tata Motors Limited and M/s Ashok Leyland Limited.
2. The items, which are not manufactured by the Chassis Manufacturers, are purchased from the Original Equipments suppliers to the chassis manufacturers.
3. First preference is given to the Original Equipments Rate Contract parties approved by the ASRTtJ, New Delhi from time to time.
4. If Original Equipments parties are not available amongst the Rate Contract parties approved by the ASRTU, in that case the sources are approved on the basis of first lowest, 2nd lowest and so on respectively on the basis of Rate Contracts awarded by ASRTU, New Delhi in favour of the firms. However the quality and performance of the products are also taken into consideration while selecting sources out of ASRTU approved firms.
5. Any other item which is not covered from the sources mentioned at S.No.(a) to (d) are identified by inviting the open tenders from reputed manufacturers through e.tendering systems and media of press in at least two/three leading news papers.
6. During breakdown en-route, spare parts are occasionally purchased from open market in order to make buses to complete their journey. Similarly, each Re Manager has been delegated financial power to Rs.’ 500W- per. bus,, per year for purchase of spare parts under emergency conditions when their supply is not available from the approved sour The Regional Manager therefore, makes purchases after completing all codal formalities from the open market, according to the requirement of spare parts on the recommendations of the Works Manager.

2. PROCEDURE FOR PLACING THE SUPPLY ORDERS:

The sources for purchase are identified by the Stores Purchase Committee and are circulated to the Divisional Managers and all the Unit Officers. The Divisional Managers places the supply orders keeping in view the requirement of various items. The concerned consignees as specified in the supply orders at Divisional Stores receive the supplies.

3. STOCKING AND ISSUE OF SPARE PARTS:

The Corporation has adopted two-tier system for stocking of the spare parts. The supplies against the supply orders issued by the Divisional Managers are received and stocked in the Divisional Stores. Supplies to the units are sent from the Divisional Stores as per requirements of units.

4. INSPECTION OF THE STORES:

The spare parts received from the suppliers are inspected by the Divisional Store Committee comprising of:

1. D.M./D.D.M/M.T./W.M.
2. A.M. (Stores)/Supdtt. (Stores)
3. Foreman/Head Mechanic
4. Sr. Store Keeper/Store Keeper

The committee puts the spare parts to visual inspection and in case of any doubt, the supplies are rejected.

5. MODE OF PAYMENT:

The payment s made to the suppliers as per the terms and conditions laid down in the rate contracts. Normally the payment is made through the Bank against the proof of dispatch.

6. PURCHASES BY DIVISIONAL STORES:

As per the schedule of Financial Powers, the Divisional Managers, and Heads of the Divisional Stores have been delegated the powers to effect purchases from the approved sources by the Stores Purchase Committee. The Divisional Managers/Heads of Divisional Stores place the supply orders for various items and on receipt of the supplies the same are stocked at Divisional Stores

7. PURCHASES AT UNIT LEVEL:

Since the Corporation cannot afford to keep vehicles off road for want of spare parts, and as such the unit officers have also been delegated financial powers for making purchases As and when spare parts, which are required for repairing of any vehicle, and are not available i the Regional Stores, such parts are purchased from the local market. The Unit Officer is authorized to make purchases up to an amount of Rs.5000/-per vehicle per year. The spare parts purchased from local market or any other suppliers received from any of the source including the Divisional Stores are inspected by the Unit level committee consisting of Regional Manager, Works Managed Foreman/ Head Mechanic, Accountant Auditor, Sr. Store Keeper / Store Keeper. The committee after inspection gives the certificate on the invoice indicating the quality and quantity was found correct. In case the same is found substandard the same is rejected.

8. TESTING OF SPARE PARTS BY CIRT, PUNE:

The random samples out of the supplies received from the approved sources from time to time are sent to CIRT, Pune for its testing and in case of sample failure the matters are placed before the store purchase committee for taking further suitable action.

CLASSIFICATION OF ITEMS & THEIR STOCKING NORMS PREVALENT IN HRTC FOR INVENTORY CONTROL

CLASSIFICATION OF ITEMS:

Items have been classified according to their Annual consumption Value (Quantity Consumed per Year x Unit Cost Annual Consumption Value).

Based on these items are classified in to following categories:

A Class Items: (High Consumption Value):

These items are only 4% of total items & contribute to 70% of total cost.

These are further subdivided in to two categories:

A) These items are those A Class items which are procured directly.

A1) These items are those A class items which are procured through Bank.

B Class Items (Medium Consumption Value):

These items are only 6% of total items and contribute to 20% of total cost.

C Class Items (Low Consumption Value):

These items contribute to 10% of total cost & are 90% of total items.

D Class Items (Dead Items):

These items are those items which are required for 1510 Model fleet or items whose demands are very less.

STOCKING LEVELS

The stocks of above classified items in Divisional and Regional Stores will as under:

STOCK CLASSIFICATION	DIVISIONAL LEVEL		REGIONAL LEVEL
	MIN	REORDER	MAX	MIN	MAX
A	15DAY	20DAY	30DAY	15DAY	30DAY
A1	1MONTH	2MONTH	3MONTH	15DAYS	30DAYS
B	1MONTH	2MONTH	3MONTH	1MONTH	2MONTH
C	3MONTH	5MONTH	7MONTH	2MONTH	3MONTH
D	1MONTH	CONSUMPTION OF UNITS	15DAYS	1MONTH
				STOCK FAST	STOCK FAST
				MOVING ITEMS	MOVING ITEMS

Bus body fabrication/accessories items:

CLASS	MINIMUM LEVEL	RE-ORDER LEVEL	MAXIMUM LEVEL
C	15DAYS	30DAYS	45DAYS