5. Determination of need for procurement and description thereof.
(1)All procurement under this Act shall be initiated after first determining the need for the subject-matter of procurement and after fulfilling the obligations under section 8 below, duly taking into account the matters so prescribed in this regard in the rules made under this Act.(2)While assessing the need under sub-section (1), the procuring entity shall take into account the estimated cost of the procurement and also decide on the following matters, namely ;(a)the scope or quantity of procurement, if determined;(b)Ensure that the need is neither artificially created nor exaggerated, with the intention to channel benefits to certain individual(s) or organization(s);(c)ensure transparency and not restrict dialogue for determining solutions for the need only with certain individual(s) or organization(s) giving them undue advantage by way of access to inside information not disclosed or disclosed late to others;(d)limitation on participation of bidders in terms of section 6, if any applicable, and justification thereof; and(e)any other matter as may be prescribed.(3)The procuring entity shall maintain documents relating to the determination of the need for procurement under sub-section (1) and the assessment made under sub-section (T).(4)Procurement Planning :(a)Every procurement entity shall prepare a Procurement Plan along with their proposal for Annual Budgetary Allocations for a Financial Year and the Plan shall be updated as per the approved Annual Budget Allocation for the entity. The updated Procurement Plan shall be approved by the concerned Administrative Department within 15 days of receipt of Budget Communication from the Finance Department of the State Government.(b)The Procurement Plan, including its updates, shall set forth at the minimum the following:(i)a brief description of goods, works, and/or non-consulting services for which procurement action is to take place during the respective financial year;(ii)the proposed methods of procurement pursuant to the provisions in this Act and the Rules made thereunder;(iii)any provision of preference in accordance to section 6 of the Act;(iv)the review thresholds as per the DFP Rules of the State Government;(v)the time schedule for key procurement activities; and(vi)any other information.(c)The Procurement Plan prepared pursuant to sub-clause (4)(a) of this section may be further updated by the procurement entity with approval of the concerned Administrative Department, provided that the updated shall remain within the approved Annual Budgetary Allocation for the procurement entity.(d)The procuring entity shall publish the Procurement Plan prepared pursuant to sub-clause (4) of this section on the State Public Procurement Portal and in the website of the concerned procuring entity :Provided that the publication of information under this clause shall not be construed as initiation of procurement process and cast any obligation on the procuring entity to issue bidding document or confer any right on prospective bidders.
