1) ONLY MAKING TENDERING A PART OF PEER REVIEW WILL DO A LITTLE
2) THIS VITAL ISSUE REQUIRES AN "IMPROVED MONITORING SYSTEM" AND DETAILED POLICY AS DISCUSSED BELOW:
To
Chairman,
Professional Development committee,
ICAI
Dear Sir,
Reference: Request of CA Amarjit Chopra, Past President, ICAI to Include Staff Only & Telephonic Talk with Vice President, ICAI
Subject: How to deal with issue of tendering (Full Action Plan on Tendering)
As communicated by the vice president, ICAI that the council in its meeting on 2nd-3rd June had discussed my memorandum and referred some points of my memorandum to PD committee, ICAI.
· Full policy on tendering issue – ICAI should come out with a full policy on tendering issue. Issues where CA can participate in Tender, Tender Document Fees, Earnest money, Penalty Clause, How to Calculate Cost of Tender and Format to Prepare Cost Sheet etc should be properly dealt in the policy.
· Peer Review of a CA Firm - We can also take care of tendering issue while peer review of a CA Firm. A detailed analysis can be made of the work done by the CA Firm and can be compared with the cost sheet.
· In this regard, I will also like to state that ICAI already had a resolution for maintenance of cost sheet.
· However, as per my knowledge, no single notice had been issued seeking the cost sheet from any firm till date.
· If we establish a system of monitoring for tendering than, situation can be controlled.
· I request you to for two tier system of monitoring: 1) at Centre level at New Delhi and 2) at each of different states level.
· Centre Level committee shall consists of at least three staffs (Joint secretary Level) of ICAI
· State level committees shall consist of at least three staff (minimum deputy secretary Level) of ICAI. One or two senior CA in the respective area who participate in tender can also be taken in committee to form data base, if require.
· DUTIES AND RESPONSIBILITIES OF STATE LEVEL COMMITTEES:
A) State level committees shall prepare a database of major tender floating in the area. This date base should be periodically expanded.
B) It will keep an eye on those tender so as to examine whether work allotted at a price less than its cost.
C) If it finds that price quoted is less than cost than it will refer to centre level committee
D) It will monthly report to centre level committee.
E) Report of state level committee shall consists of matters such as the details of the tender they examined during the period, work to be done, price at which work allotted etc.
· DUTIES AND RESPONSIBILITIES OF CENTRE LEVEL COMMITTEES:
A) It will examine report of state level committees and
B) It will issue notices seeking cost sheets from Firm.
· Create Awareness - To create awareness among members, email of the regulation for maintenance of cost sheets along with the announcement for the formation of above committees can be made.
· Minimum Bid Price - These state level and central level committees can request company who is coming out with floating a tender to fix the minimum bid price in the tender.
· Compulsory Submission Of Tender Related Information To Committee - Alternatively, we can make a rule to compulsory submit to these committees, the work profile (work to be done) and the price at which A CA secured the work (Compulsory submission Only In Case A CA Has Been Allotted Work). It will save ICAI resources and we can easily get tender related information.
I am sure that the above mentioned monitoring system will help ICAI to control the cut throat bidding.
CA Amarjit Chopra, Past President, ICAI in an email to me stated, "All we can do is to request ICAI to implement decision of Jan. 2011. No harm done in doing so (on formation of committees). But it should have minimum number of members. In fact to my mind it should be left to staff of ICAI who can work more objectively and in an unbiased manner".
Warm Regards
CA.Nitesh Kumar More | FCA, |
Mobile: - +91 9883157484 | +91 9674974186 | Tel: - +91 33 32562967 |
Warm Regards
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CA.Nitesh Kumar More | FCA, |
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