Assignment 1

CNPB
 Directorate General of Supplies &
Disposals(DGS&D)

MADE BY: SHOBHITGUPTA /ROLLNO:31/ EPGDIM 09-11

 Role & Functions of DGS&D  
1.  A CENTRAL PURCHASE & QUALITY ASSURANCE ORGANISATION of Govt. of India,
Department of Supply,      Ministry of Commerce.
2.  In the year 1860, the British Govt. evolved a concept of CENTRAL BUYING & set
up INDIA STORES DEPARTMENT in LONDON for meeting procurement needs of Govt.
of India.
3.   Established in 1951 in its present form for rendering procurement services to Central
& State Govt. by placing Rate Contracts for common user items & contracts against
their ad-hoc demands.
4.  Adhoc procurement decentralized in December, 1991. Main function  now is to
conclude RATE CONTRACTS.
5.  Quality assurance functions continue to remain centralized as before.
6.  Continues to be the NODAL Agency of Govt. of India for purchase policy . & procedure.
7.  Govt. Departments/Organisations, who have not built-up their own infrastructure for
purchase, can raise their demands on DGS&D for ad-hoc procurement.
8.  Handling procurement against several WORLD BANK & ASIAN DEVELOPMENT
BANK aided projects for modernisation of POLYTECHNICS & VOCATIONAL TRAINING
CENTRES, NATIONAL AIDS CONTROL. NATIONAL/ STATE HIGHWAYS, Hydrology
Project
9.  Services continue to be available to PUBLIC SECTOR UNDERTAKINGS &
AUTONOMOUS BODIES.
10.Has a full fledged QUALITY ASSURANCE WING rendering wide ranging technical
services inclusive of formulation of need based procurement specifications,
vendor development/evaluation and assuring quality of goods for their
conformity. Service charges range from 0.25 to 2 %.
11.Cargo clearance services at major ports are available.
12.Manned by qualified Engineers recruited through Indian Engineering Service
Examination by UPSC, Govt. of India.
13.State Governments,  Public Undertakings, Autonomous Bodies, Quasi Public
Bodies, etc. who desire to avail the services of DGS&D can do so. However, indent
from these departments should be accompanied by a pre-deposit of funds
sufficient to cover the cost of stores. Pre-deposit of funds may be in the form of
demand draft or crossed cheque drawn on the Reserve Bank of India/State Bank of
India duly marked 'On Government Account Only' and in favour of Chief Controller
of Accounts, department of Supply, New Delhi.
14.Consultancy services of DGS&D are offered to desirous organisations for availing
R/C prices, finalising tender documents for their own procurement and providing
quality assurance support.
15.Databank on suppliers rate contracts is maintained to arrange supplies of clothing
and tentage items etc. for meeting emergency requirements during
disasters/natural calamities.
16.Facility for training in Quality & Purchase management field are also available in
DGS&D
17.Consultancy Disaster Management
 Questions
• What are the special requirements for the
supplier of defense items to be procured
under DGSND contract?
• What are different wings of DGSND?
• What is the role of quality assurance and
why?
 Quality Assurance Wing 
Organisation
• Quality Assurance Wing of DGS&D (Formally known as Inspection
Wing) is the Inspection Agency of the Govt. of India
• Consists of a team of professionally qualified experts, trained in
India & abroad in various disciplines of engineering
• Renders inspection & technical services for Quality Assurance in
procurement activities
• Technical arm of DGS&D providing complete support in purchase
activity by laying down specifications, assessing the vendors,
technical evaluation of bids & assuring quality of stores for their
conformity
• It has 35 centres covering all industrial locations in the country
• Provides THIRD PARTY INSPECTION SERVICE for civil indentor
 Functions
of Quality Assurance wing
• Quality Assurance of products at various stages of manufacture,
commissioning & testing
• Preparation of technical specifications for tender enquiry &
technical evaluation of bids
• Vendor assessment for placement of contracts and registration
• Testing & Evaluation of stores
• Failure investigation of stores
• Development of small scale industries and KVIC units
• Quality Audit of supplies at users end
• Provides single window service by giving information about DGS&D
functions to the indentors & the industry
• Assisting BIS in preparation and updating of National Standard
 Different Wings & Supporting units
• PLANNING AND CO-ORDINATION UNIT; Planning and Co-ordination Unit (P&C
Unit) with strategic planning for business development, initiation, implementation
and interpretation of policy and procedures relating purchase, quality assurance,
disposal and shipping.

• INTERNAL WORK STUDY; This unit performs the functions of undertaking methods
study with a view to streamlining the procedures and cutting down delays..

• TRAINING AND CONSULTANCY:

(a) In line with the National Training Policy, training of DGS&D personnel is arranged
both at the time of recruitment and in-service. Training Directorate co-ordinate
with the Department of Personnel and Training in arranging the training
programmes.
(b) National Institute of Supply and Quality Management has been set up in DGS&D
who will impart in-service training to the DGS&D Officers as well as from other
Government Departments and private sectors.

• MANAGEMENT INFORMATION SERVICES: The Management Information Services

Directorate is responsible for maintenance and dissemination of data.
• COMPUTERISATION; The purchase and Quality Assurance Activities in DGS&D
as well regional offices have been computerised with the assistance of
National Informatic Centre (NIC). The items have been codified store wise to
facilitate integrated functioning of the system of all the three wings involved,
namely, Supply, Quality Assurance and Chief Controller of Accounts (CCA).

• PUBLIC GRIEVANCES AND PUBLIC RELATIONS CELL; As a procurement agency,

the DGS&D has to deal with the business community and the indenting
departments and such dealings call for prompt and satisfactory action.

• MARKET INTELLIGENCE CELL AND COST CELL; With a view to gather, compile
and maintain an upto date data bank in a systematic manner and to arrive at
reasonable prices of the products to be brought on the Rate Contracts, two
Cells viz. Market Intelligence Cell (MIC) and Costs Cell are functioning in the
DGS&D.

• INTEGRATED FINANCE WING: A complement of the officers of the Integrated

Finance Wing of the Department of Supply is posted in the DGS&D to advise
concurrently on purchase cases, wherever required and also to tender advice
on other financial matters concerning the organization.
• LEGAL WING: This Wing is headed by the Senior Officer of the
Ministry of Law designated as Additional Legal Adviser.

• ADMINISTRATION WING; The Administration Wing attends to the

house keeping functions and the personnel management of the
staff including welfare, security etc.

• VIGILANCE WING: Vigilance Wing is entrusted with the overall

responsibility for anti-corruption measures.

• LIAISON CELLS; The National Small Scale Industries Corporation Ltd.

Maintains a Liaison Cell in order to have a close liaison with the
Purchase Directorates with a view to implement the policy of the
Government of India for increasing the quantum of Government
purchases from the cottage and small scale industries sectors.
 Special requirements for Supplies of defence items procured under
DGSND contract
1. For the items required by Defence as per Defence Specification, firms registered with
DGS&D/NSIC based on capacity verification by Defence Quality Assurance Authority
will qualify for the award of the rate contact. Firms who are registered/approved for
Defence Quality Assurance Authorities directly will also qualify for award of Rate
Contract.

2. The Quality Assurance Wing of the DGS&D shall be the sole purchasing agency for
inspection of stores procured under the rate contract. For stores required by Defence, as
an exception, DG(QA), Ministry of Defence will be the agency for inspection except for
the items for which, DG(QA) authorizes DGS&D to carry out bulk inspection.

3. Director General of Quality Assurance, Ministry of Defence is the Inspection Authority

for stores procured against the Defence and DGBR as per Defence specifications.

4. In respect of Defence demands, with inspection by Defence Authorities, capacity

verification of the units will be carried out, and orders placed only on receipt of
satisfactory and capacity verification Reports.
5. For Defence stores, the firms registered with DGS&D/NSIC are not recognized by DG
QA, Ministry of Defence, if capacity assessment has not been done by that organization.
Capacity assessment for stores to Defence specifications for such firms should be called
for from DGQA. If the capacity report received is favorable the firm registered with
DGS&D/NSIC without obtaining inspection report initially from Defence Inspectorate in
question will be considered as registered for all purposes.
6. The orders for indigenous stores be placed in excess of the estimated value of the indent
without reference to the indentor if the extra expenditure over the total estimated amount
is not more than the following limits:
Category of Indentor Limits
Defence Upto 50% subject to the total
increase over estimated cost
limited to Rs. 10 Lakhs.
7. NSIC will register Small Scale Units for stores which are required by Defence whether to
IS specification or to Defence specification and where both Inspection Authority and the
Inspector are belonging to Defence only on the basis of an Inspection Report from
Defence Inspectorate. NSIC while intimating DGS&D about the registration in such cases
would also specifically indicate that the firm has been registered on the basis of the
Inspection Report from Defence Inspector and also forward a copy of the Inspection
Report to DGS&D. The Defence Inspector will furnish the inspection report within eight
weeks of the request from NSIC.
8. In case of pharmaceuticals, medical drugs, surgical instruments, tentage for
Defence and items
for the manufacture of which seasoned timber is required . Defence Inspectorate of
concerned
stores will be consulted by NSIC as being done by DGS&D.
9. AUTHORITY FOR MAKING PAYMENT OF CUSTOMS DUTY : In respect of Defence
contracts the payment of customs duty is to be arranged by the indentor himself and it
will be
paid by the Controller of Defence Accounts.
10. DESPATCH OF STORES ON MILITARY CREDIT NOTES:
(i) The use of Military Credit Notes is permissible only if the following condition are
fulfilled.
(a) The goods should be the bonafide property of the Ministry of Defence at
the time of despatch.
(b) The freight on the goods should be chargeable to Defence Services
Estimate and
(c) The goods are not sold or for sale, Loan or transferred to the Civil
Department of the Government or general public.
(ii) SIGNING AND ISSUE OF MC NOTES: As far as possible, provision should be made in the Acceptance of Tender/Supply Order for the
issue of Military Credit Notes by the Quality Assurance Officer (whether of the QA Wing of this Director General or the Defence
Services) alongwith the Inspection Notes. The Purchase Officer should normally issue Military Credit Note in cases where inspection
is carried out by the consignee after receipt of the goods at destination or where the Quality Assurance Officer is not authorized to
issue

Military Credit Notes.

(iii) The following officers of the Directorate General of Supplies and Disposals have been
authorized by the Government of India to sign and issue Military Credit Notes:-
1. Director (Co-Ordination), DGS&D, New Delhi.
2. Director(Admn.), DGS&D, New Delhi.
3. Deputy Director(Admn.), DGS&D, New Delhi.
4. All Directors and Deputy Directors of Supplies in the DGS&D, New Delhi.
5. Directors of Supplies & Disposals, Calcutta/Mumbai/Chennai.
6. All Deputy Directors of Supplies in the Directorate of Supplies and Disposals
Calcutta/Mumbai/Chennai.
7. Assistant Director of Administration, Directorate of Supplies and Disposals, Mumbai.
8. Assistant Director(Shipping), Directorate of Supplies & Disposals,
Calcutta/Mumbai/Chennai.
9. All Directors, /Deputy Directors and Assistant Directors of Quality Assurance.
10. All Quality Assurance Officers, Assistant Quality Assurance Officers in the Quality
Assurance Wing of the Directorate General of Supplies and Disposals.
11. All Examiners of Stores(non-gazetted) in the Quality Assurance Wing of the
Directorate General of Supplies and Disposals.
(iv) Consignments booked under M.C. Note are treated as freight paid at owner’s risk at Military
concessional rate under Military Tariff regulations whereas consignments booked freight to pay or at Railway Risk are charged at Public

Tariff rates.  
THANK YOU