Chapter I Chapter I

(1) This Act may be called the Karnataka Transparency in Public Procurements Act, 1999. (2) It shall be deemed to have come into force with effect from the fourth day of October, 2000. (1) "Scheduled Castes" shall have reference to the Scheduled Castes specified in part VII of the Constitution (Scheduled Castes) Order, 1950 made under Article 341 of the Constitution of India and as amended from time to time; (2) "Scheduled Tribes" shall have reference to the Scheduled Tribes specified in part VI of the Constitution (Scheduled Tribes) Order, 1950 made under Article 342 of the Constitution of India and as amended from time to time;

In this Act, unless the context otherwise requires,- (a) ‘Construction Works’ means putting up, demolishing, repairs or renovation of buildings, roads, bridges or other structures including fabrication of steel structures and all other civil works; (aa)'e-Procurement' means purchase of goods, obtaining of services or undertaking of construction work by the procurement entity through e-Procurement platform; (aaa)'e-Procurement Platform' means a procurement platform of electronic media comprising of procurement process set up and managed by the State Government through integrated internet enabled procurement tools incorporated by customisation. (b) ‘Goods’ means Machinery, Motor Vehicles, Equipment, Furniture, Articles of Stationary, textiles raw materials, drugs, scientific instruments, chemicals, food grains, oil and oil seeds or other commodity required for consumption, use or distribution by a Procurement Entity in discharge of its public duties; (c) ‘Government’ means the State Government; (d) ‘Procurement Entity’ means any Government Department, a State Government Undertaking, Local Authority or Board, Body or Corporation established by or under any law and owned or controlled by the Government, and any other body or authority owned or controlled by the Government and as may be specified by it. (e) ‘Public Procurement’ or ‘procurement’ means purchase of goods, obtaining of services or undertaking of construction works by the procurement entities; (f) ‘Services’ means the action of serving, attending upon, helping or benefiting a Procurement Entity in the course of discharging its public duties and includes construction works; (g) ‘Specified goods or Services’ means the goods or services as the case may be specified in a tender and identified in the contract resulting from acceptance of a tender on account of a procurement entity; (h) ‘Tender’ means the formal offer made for supply of goods or services in response to an invitation for tender published in a Tender Bulletin; (i) ‘Tender Accepting Authority’ means an officer or a Committee appointed to accept tenders and a ‘Tender Inviting Authority’ means an officer or a Committee appointed to invite tenders, under section 9; (j) ‘Tender Bulletin’ means a bulletin published for the State as a whole or for any district or districts within the State containing the details of invitation, processing and acceptance of Tenders; (k) ‘Tender Bulletin Officer’ means a State Tender Bulletin Officer or a Tender Bulletin Officer referred to in section 7; (l) ‘Tender Document” means the set of papers detailing the schedule of works, calendar of events, requirement of goods and services, technical specifications, procurement criteria and such other particulars, as may be prescribed for evaluation and comparison of tenders. Provided that for the purpose of e-Procurement, the 'tender papers' means set of documents in electronic form.

The provisions of this Act in so far as they are inconsistent with the procedure specified in respect of the Projects funded by International Financial Agencies or Projects covered under International Agreements, shall not apply to procurement of goods or services for such project.

The provisions of Chapter II shall not apply to Procurement of goods and services,- (a) During the period of natural calamity or emergency declared by the Government ; (b) Where the goods or services are available from a single source or where a particular supplier or contractor has exclusive rights in respect of the goods or services or construction work and no reasonable alternatives or substitutes exist: Provided that for the purpose of this clause there shall be a committee of three experts consisting of one technical representative of the procuring entity one technical representative of the Government organisation dealing with similar procurement and one representative from a reputed Academic or Research Institution or Non-Commercial Institution having expertise in such line to examine and declare that the goods or services are available from a single source; (c) Where the procuring entity having procured goods, services or technology from a supplier or contractor determines that additional supplies must be procured from the same supplier or contractor for reasons of standardization and compatibility with the existing goods, service or technology; (d) Where the goods or services are procured from certain Departments of Government, public sector undertakings, statutory boards and such other institutions specified by the Government and such goods are manufactured or services are provided by them, for a period not exceeding three years from the date of commencement of this Act; (e) Where the procurement is by the Government Departments, State Government Undertakings, or any Board, Body or Corporation established by or under any law and owned or controlled by the Government or Zilla Panchayats constituted under the Karnataka Panchayat Raj Act, 1993 or City Municipal Corporations established under the Municipal Corporations Act, 1976 or City Municipal Councils established under the Karnataka Muncipalies Act, 1964 or the Hyderabad Karnataka Areas Development Board constituted under the Hyderabad Karnataka Area Development Board Act, 1993 or Malnad Area Development Board constituted under the Malnad Area Development Board Act, 1991 or the Bayaluseeme Development Board constituted under the Bayaluseeme Development Board Act, 1994,- (i) in case of construction works of all types the value of which does not exceed Rs. 5,00,000; (ii) in case of goods or services other than construction works the value of which does not exceed Rs. 1,00,000; (ee) where the procurement of goods or services is by the Grama Panchayats and Taluk Panchayats constituted under the Karnataka Panchayat Raj Act, 1993, Town Municipal Councils or Town Panchayats constituted under the Karnataka Municipalities Act, 1964 or Urban Development Authorities constituted under the Karnataka Urban Development Authorities Act, 1987,- (i) for the purpose of implementing mini water supply scheme or construction of school rooms and the value of such procurement does not exceed Rs. 2,00,000; and (ii) for other purposes and the value of such procurement does not exceed Rs. 1,00,000; (eee) Where the procurement is by the procurement entity receiving grant from the consolidated fund of the state, in case of Infrastructure works of electrification of drinking water schemes the value of which does not exceed Rs. 5,00,000; (f) Where the goods or services are procured under rate contracts from the Director General of Supplies and Disposals or from the Stores Purchase Department of the State; and (g) in respect of specific procurements as may be notified by the Government from time to time. (h) in respect of spot purchase of cotton by Spinning Mills, purchase of oil seeds by the Karnataka Agro-Industries Corporation or the Karnataka Co-operative Oil Seeds Grower's Federation, purchase of sugarcane by Sugar Mills, direct purchase of paddy by the Agricultural Produce Market Committees and the Karnataka Food and Civil Supplies Corporation, purchase of cloth by the Karnataka Handloom Development Corporation, purchase of silk by the Karnataka Silk Industries Corporation, purchase of milk by the Karnataka Milk Producers Co-operative Federation, purchase of palm oil by the Karnataka Food and Civil Supplies Corporation and the Karnataka Co-operative Oil Seeds Grower's Federation, purchase of cloth by the Government Departments and public sector undertaking from the Karnataka Handloom Development Corporation and purchase by such other organizations or purchase of any other material as may be notified by the Government from time to time.