{"id":6222,"date":"2025-08-10T13:15:03","date_gmt":"2025-08-10T13:15:03","guid":{"rendered":"https:\/\/railtravels.org\/?p=6222"},"modified":"2025-08-10T13:15:03","modified_gmt":"2025-08-10T13:15:03","slug":"procurement-of-items-on-pac-basis","status":"publish","type":"post","link":"https:\/\/www.reilsolar.com\/train\/procurement-of-items-on-pac-basis\/","title":{"rendered":"Procurement of items on PAC basis"},"content":{"rendered":"<div class=\"entry-content\">\n<p><strong>Procurement of items on PAC basis<\/strong><\/p>\n<p>Sub: Procurement of items on PAC basis<\/p>\n<p>Ref: Audit Para No. 5,1 for the year 2025 -12<\/p>\n<p>Reference above, audit has pointed out that in some cases of procurement of PAC items involving advance payment against proforma invoice, delay\/short receipt are noticed. Therefore, steps should be taken, if not already there, to ensure the timely and full supply of material against P.l. payment cases.<\/p>\n<p><strong>(Santosh Mittal) <\/strong><br \/>\n<strong>Dy. Director, Rly. Stores(G)I<\/strong><br \/>\n<strong>Railway Board,<\/strong><\/p>\n<p>Click below link to view the Original order<\/p>\n<p><a href=\"https:\/\/www.reilsolar.com\/train\/wp-content\/uploads\/sites\/17\/2021\/12\/Procurement_110814.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Procurement_110814<\/a><\/p>\n<\/div>\n<footer class=\"entry-footer\">When procurement in Indian Railways is carried out on a <strong>PAC basis<\/strong>, it refers to purchases made under a <strong>Proprietary Article Certificate (PAC)<\/strong>\u2014that is, items available from a <strong>single source only<\/strong>. Here\u2019s how that works:<\/p>\n<hr \/>\n<h3>1. What is PAC-Based Procurement?<\/h3>\n<p>A <strong>PAC (Proprietary Article Certificate)<\/strong> is mandated when procuring non-stock items from a <strong>sole supplier<\/strong>. This occurs when no alternate vendors manufacture a similar item. Indents must be supported by either a PAC or solid justification for a single-source purchase.<\/p>\n<hr \/>\n<h3>2. Who Signs the PAC?<\/h3>\n<p>The <strong>consuming (user) department<\/strong> is responsible for signing the PAC. However, the authorizing officer varies with the item\u2019s estimated value. The thresholds are:<\/p>\n<ul>\n<li><strong>Indenting Officer<\/strong>: up to \u20b925,000<\/li>\n<li><strong>JAG\/Selection Grade Officer<\/strong>: up to \u20b975,000<\/li>\n<li><strong>SAG Officer<\/strong>: up to \u20b93 lakhs<\/li>\n<li><strong>PHOD\/CHOD of the User Department<\/strong>: above \u20b93 lakhs<\/li>\n<\/ul>\n<hr \/>\n<h3>3. What Happens Next?<\/h3>\n<ul>\n<li>Stores Officers (e.g., COS, CMM, Dy.CMM) can place purchase orders against such single-source tenders\u2014but their spending powers depend on the PAC status:\n<ul>\n<li>With a <strong>PAC Certified<\/strong> item, authority limits vary:\n<ul>\n<li>COS up to \u20b95 lakh<\/li>\n<li>CMM up to \u20b93 lakh<\/li>\n<li>Dy.CMM up to \u20b92 lakh<\/li>\n<li>SMM up to \u20b91 lakh<\/li>\n<li>AMM up to \u20b950,000<\/li>\n<\/ul>\n<\/li>\n<li>Without valid PAC certification, such purchases <strong>should not proceed<\/strong> via single tender.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>4. Oversight &amp; Periodic Review<\/h3>\n<ul>\n<li>PAC procurements are monitored for fairness; pressure to resort to PAC vs. open tendering is discouraged.<\/li>\n<li>Railways are required to <strong>publish PAC purchase details<\/strong> every six months. If an item is regularly needed, departments are encouraged to convert it into a <strong>stock item<\/strong>.<\/li>\n<li>According to audit data (2007\u201312), PAC purchases formed only about <strong>2.3% of procurement by value<\/strong>, but a significant share comprised <strong>\u201cother than safety\/vital\u201d items<\/strong>, raising concerns over misuse.<\/li>\n<\/ul>\n<hr \/>\n<h3>Summary Table<\/h3>\n<table>\n<thead>\n<tr>\n<th>Step<\/th>\n<th>Action<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>User department must certify PAC when single-source procurement is justified.<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Appropriate authority signs PAC based on value slab.<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Stores Officers issue single-tender procurement within their delegated powers.<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>Regular PAC items should be stock-listed; all PAC procurements should be disclosed biannually.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<p>Let me know if you&#8217;d like officer-level delegation charts, differences between PAC types (e.g., PAC-a\/c), or how PAC rules vary for emergency purchases\u2014I\u2019m happy to assist further!<\/p>\n<\/footer>\n","protected":false},"excerpt":{"rendered":"<p>Procurement of items on PAC basis Sub: Procurement of items on PAC basis Ref: Audit Para No. 5,1 for the year 2025 -12 Reference above, audit has pointed out that in some cases of procurement of PAC items involving advance payment against proforma invoice, delay\/short receipt are noticed. Therefore, steps should be taken, if not [&hellip;]<\/p>\n","protected":false},"author":102,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,51,7,52,134],"tags":[4,74,50,6,53,522,133,516],"class_list":["post-6222","post","type-post","status-publish","format-standard","hentry","category-irctc-news","category-ministry-of-railways","category-railway","category-railway-board-circular","category-railway-circular","tag-irctc","tag-irctc-news","tag-ministry-of-railways","tag-railway","tag-railway-board-circular","tag-railway-board-circular-2014","tag-railway-circular","tag-railway-circular-2014"],"_links":{"self":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/posts\/6222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/comments?post=6222"}],"version-history":[{"count":0,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/posts\/6222\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/media?parent=6222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/categories?post=6222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/tags?post=6222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}