GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Public
Services – New Recruitment Policy and Guidelines – Orders – Issued.
GENERAL ADMINISTRATION
(SER.A) DEPARTMENT
G.O.Ms.No.94 Dated:28-03-2003,
Read the following:-
1. Act 2/1994, Dt.15.1.1994.
2. G.O.Ms.No.211, Fin. (PCIII) Dept., Dt.22.4.1994.
3. G.O.Ms.No.152, Fin. & Plg. (FW.OP.I)
Dept., Dt.14.6.1995
4. G.O.Ms.No.275, Fin. (SMPC) Dept., Dt.14.12.1995.
5. U.O.Note No.2268-C/23/Fin SMPC/96 Dt.6.3.1996
6. G.O.Ms.No.436, G.A. (Ser.D) Dept., Dt.15.10.1996
7. G.O.Ms.No.58, Fin (SMPC) Dept., Dt.28.3.2001
8. G.O.Ms.No.526, Fin.(SMPC) Dept., Dt.28.9.2001
9. W.P.No.2904 of 2002
10. WP MP No.3459 of 2002 in WP No.2868 of 2002.
11.G.O.Ms.No.24, Fin (SMPC) Dept., Dt.9.1.2002.
***
ORDER:
1. Act 2 of 1994, first read
above, laid down the norms and procedures for regulation of appointments to
public services and rationalization of staffing patterns and pay
structures. This Act
prohibited Government Departments, Corporations, Universities and Local bodies
etc., from making
unauthorized appointments through the backdoor of NMRs, daily wages or
appointments on consolidated pay. However, the Act 2 of 1994 did not put any
ban on recruitment into public services. The
Government of Andhra Pradesh issued orders in the reference second read above
on the procedure to be followed in scrutinizing the requests for direct
recruitment and forward all requests to the recruiting agencies through the
Finance Department. The
Finance Department scrutinizes all requests for fresh recruitment on a
case-by-case basis, including the need and justification, the possibility of
redeployment of surplus staff and the likely financial burden and places the
proposal before the cabinet for obtaining final orders. Once the competent authority has taken a final decision, the
Finance Department issues the necessary requisition to the concerned recruiting
agency like Andhra Pradesh Public service Commission or District Selection
Committee, to make the recruitment to the extent approved.
2. Certain Writ Petitions were filed in the High Court of Andhra
Pradesh and during
the course of hearings in Writ
Petitions ninth and tenth read above, the Hon’ble High Court of Andhra
Pradesh observed
that the Government of Andhra Pradesh should make public their recruitment
policy. Accordingly,
taking note of these observations,
the Government of Andhra Pradesh, after careful examination, hereby declares its policy on recruitment to public services.
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Core-functional
category Posts only to be made Permanent:
3. Every department of the Government is created with the objective
of providing certain public infrastructure and services to the citizens. For example, the Roads & Buildings Department is created
to construct and maintain roads and bridges. The Agriculture Department is created to provide technical advice
and agricultural inputs to the farming community. They also perform certain
regulatory, developmental, promotional and administrative functions to fulfill
their departmental objectives. The core
functions of the department are performed
through gazetted and non-gazetted employees that have the professional
qualifications in the field of engineering or agriculture and related subjects.
They are
provided administrative support through non-gazetted ministerial staff such as
Superintendents, Senior
Assistants, Stenographers,
and Junior Assistants. Other
functionaries like Attenders, Watchmen and Drivers etc., are provided as Class IV
support staff.
4. The Government takes up
several developmental programmes, projects
and schemes that are funded for a few years and discontinued thereafter, either
on completion
or drying up of funding. Temporary
posts are created for implementing
such schemes/projects. In the
reference third read above, Government had instituted Implementation Committees for all departments to examine the
desirability of making temporary posts permanent or continuing them as
temporary or discontinuing them altogether. Unfortunately, these Implementation Committees have not been meeting regularly nor have
they developed norms for taking suitable decisions. And the result
has been that a very large number of temporary posts have continued as temporary for years together.
5. Explanation
(i) under Rule 4 (b) of the A.P.State and Subordinate Service Rules, issued
vide GO sixth read above, enlarged the definition of Substantive posts to include all temporary posts which have continued in
existence for a period of five years or more. As a result of
the increase in the number of substantive posts, the quota of posts for which
direct recruitment has to be made has gone up substantially. This decision has led to the anomaly of
permanent direct recruitment against temporary posts that are continued from
time to time. This
decision has also had an adverse financial impact on account of creation of
permanent financial liabilities such as
pensions and other retirement payments.
6. Following the enactment of Act 2 of 1994, the State Government
appointed a Staff Review Committee, in the reference second read above, to fix
rational staffing patterns with reference to workload, and identify schemes,
programs, administrative units etc., that have become obsolete or redundant but
were continued merely for the sake of keeping the staff and paying them
salaries. The
affected Departments as well as Staff Unions have expressed their opposition to
the SRC recommendations. The
Government has yet to take a final view on the report.
// 3 //
7. Government has reviewed the situation and decided that, in
future, Government
shall treat only a certain number of posts under gazetted and non-gazetted
posts under the Service Rules of concerned departments, and Group.I and II posts under Andhra Pradesh State and Subordinate Service
Rules, as core
functional posts. In order
to identify the core
functions of each department, the Implementation Committees shall be
immediately re-activated. These
Implementation Committees shall take into account the Performance and Process
Indicators, the Staff and Cost efficiency norms, the use of Information
Technology and other modern management practices such as contracting professionals on fixed tenures or outsourcing administrative and
logistical support services to service providers etc., to arrive at the number
of core functional posts for each department. Government will separately lay down norms and guidelines on core
and non-core functions, in consultation with Finance Department and the Centre for Good Governance, for the
Implementation Committees to follow.
8. Based on the identification of core functions of each department,
the Implementation Committees will recommend the number of core functional
posts in
Gazetted, Technical, and Group.I & II categories that are required to be
made permanent. Further, since in most departments, a large number of permanent
posts already exist in non-core functional
categories, it is hereby ordered that the existing
permanent posts in all categories, including non-core categories, shall also be treated on par with core functional posts and continued on permanent basis. However, in future no new posts in the non-core functional
categories shall be made permanent.
9. Pending implementation of the decision in the preceding paragraphs
to fix the cadre strength of permanent posts, the Government further orders
that, in supercession
of orders on sixth read above, henceforth, direct recruitment shall be restricted only in the case of vacancies arising against existing
permanent posts in all
the departments. The
number of direct recruit vacancies in the permanent posts shall be computed
only after first adjusting the existing direct recruits presently working against temporary posts. Consequential vacancies in the core-functional temporary posts in Gazetted, Technical, Group.I and II categories
may be filled up only through contract appointments on fixed-tenure basis, not
exceeding three years. Further
direct recruitment or contractual appointments in Group.III and IV and Class IV
posts shall be deferred till the adjustment of all already available direct
recruits against future permanent vacancies.
Contractual Appointments
for Core-functional Temporary Posts:
10. With
effect from 1st April, 2003, all departments shall maintain
separate rosters for permanent and temporary posts of all Core-functional categories
in order to identify direct recruitment and promotion
vacancies. These rosters shall also indicate the vacancies reserved
for various categories such as scheduled castes, scheduled tribes
etc., While promotion quota of core functional temporary posts may
be filled up through temporary promotions from the feeder categories, no direct
recruitment quota of temporary posts shall be filled up through any adhoc
promotions.
// 4 //
Further, the direct
recruitment vacancies for core-functional temporary posts shall be computed
only after adjusting the regular direct recruits already in
service. Consequent recruitment vacancies
of core-functional temporary posts may be filled up through
contractual appointments on a fixed tenure basis.
11. The
tenure of each contractual appointment shall not be more than the period for
which the posts has been created or three years, whichever is
less. If the original contractual appointment is for a period less
than three years, this may be extended from time to time but shall necessarily
be terminated at the end of the three years. No further extension
shall be admissible under any circumstances. However, the
individuals concerned may be permitted to appear on par with other candidates
for any fresh contractual appointments. The procedure for, and terms
and conditions, of contractual appointment are prescribed in the Annex 1 to
this order.
Emoluments for contract
appointments to be related to Market rates:
12. It
is common knowledge that in Andhra Pradesh, as also in the country, senior
Government/public sector officers are paid far less than their counterparts in
private/corporate sectors. But the position is quite the opposite at the time
of initial recruitment in Group I Gazetted categories for candidates with
similarly professional and technical qualifications. Similarly, in
non-gazetted technical, Groups II, III & IV and Class IV jobs, the
Government/public sector employees are paid more than their counterparts in the
private/corporate sectors. The Government employees also enjoy the
benefit of security of tenure. Further, while the administrative and
logistical support staff is relatively small in private/corporate sectors,
their numbers are very large in government/public sector, thereby putting a
huge financial burden on the public exchequer. While the pay scales
fixed by the government may have to be continued for the permanent posts, there
is a need to review the policy of fixing emoluments for contractual appointments
against core-functional temporary posts to bring them in line with
market rates.
13. In order to attract the best candidates with appropriate
professional and technical qualifications for senior core functionaries of
temporary nature, the Government hereby orders that emoluments should be fixed
on par with market rates on a consolidated pay basis. Each department will constitute a committee under the Chairmanship
of the Administrative Secretary with representatives of General Administration
and Finance departments for fixing emoluments for different categories of
temporary gazetted posts to be filled up by contractual appointees. The guidelines for fixing the emoluments are given in the Annex 1
to this order. For all
groups of non-gazetted posts, the General Administration Department, in
consultation with Finance Department, shall fix emoluments from time to time in
relation to market rates, to be offered for temporary contractual
appointments.
Outsourcing
of Support Services:
14. There are two types of outsourcing of support services. The first one is outsourcing of functionaries, and the second one
is outsourcing of functions. In the first case, a department may enter
// 5 //
into a
contract with an agency to provide the services of a certain number of
technical support functionaries, e.g., Computer professionals or Surveyors or
Draughtsmen for a specific period. The
agency selects and employ the functionaries as per the requirements of the job
and places their services at the disposal of the Department for a fixed
amount. However,
the functionaries continue to be the employees of the service agency during and
after their assignment with the Department. In the
second case, the Department may outsource the function, e.g., catering,
housekeeping, security etc. to a service provider agency for a fixed period of
time for a mutually negotiated amount. Accordingly,
the service provider agency will engage a certain number of personnel and
deploy equipment to meet the specific standards prescribed for that function in
the contract. In this
case also, the functionaries continue to be the employees of the service
provider agency during, and even after, their assignment with the Department.
15. Government
has permitted several departments to outsouce functions or functionaries for
support services in the last few years. Experience
has shown that the Departments have received good quality services at very
reasonable rates compared to performance of similar functions through government’s
own staff. Competition
among services providers ensures good quality and the Departments have the
flexibility to source personnel according to their emerging needs. Since the remuneration is market-based, it turns out to be very
cost effective, particularly because there is no permanent liability of
retirement benefits. However,
the government is equally
committed to its assurance that existing employees shall not be
retrenched. On the
other hand, the government will make efforts to gainfully use their services
through redeployment. However,
future direct recruitment in these non-core functional categories of posts
shall be restricted to permanent posts only, and the requirement of temporary personnel for non-core functions shall be outsourced.
16. Government has reviewed the position and hereby orders that regular direct recruitment in Group.III, IV and Class IV categories against existing temporary vacancies shall be discontinued forthwith. The Implementation Committees shall make recommendations on the need and justification for continuation or otherwise of the temporary vacancies as well as filled-up posts in the non-core functional categories, on the basis of criteria already mentioned in respect of permanent posts. However, in future, no further direct recruitment shall take place for such non-core functions or posts. The Implementation Committees will recommend the mode of outsourcing for various categories of such posts, which may be filled up as per norms and procedures prescribed in the Annex 2 to this order.
Procedure
for Creation
and Filling
up of posts:
17. Government order seventh read above laid down the procedure for
continuation of temporary posts, and their conversion into permanent
posts. Government order eighth read above lays down the procedures for the
creation and upgradation of posts.
// 6 //
However,
in fact, these procedures are not effectively being followed, particularly in
respect of scrutiny of proposals for continuation of temporary posts or their
conversion into permanent posts. As
ordered in the previous paragraphs, the Implementation Committees shall be
re-activated to ensure that work norms and management innovations are employed
to get best value for money in the magnitude and mode of deployment of manpower
in government.
18. Government
orders fourth and sixth read above lay down the procedure to be followed for
forwarding the requisitions to the recruiting agencies to initiate the
recruitment process. A
question has arisen whether the role of Finance Department is limited to
examine the request of the Administrative Department from the perspective of
redeployment of surplus staff only or does it encompass larger issues of the
need and justification for proposed recruitment, and its financial impact on
the budget. Government
has carefully examined this issue and hereby clarifies that a mere availability
of vacancies cannot be treated as adequate justification for a department to go
ahead and initiate direct recruitment. Each
Department has to justify the need for filling up of vacancies and get a formal
approval from the competent authority. In the
absence of effective functioning of the Implementation Committees, Finance
Department has undertaken the scrutiny of recruitment proposals on a
case-by-case basis, particularly in view of the financial implications of such
recruitment proposals, often unbudgeted, which is in accordance with their
mandate as per the Rules of Business. The
Government proposes
to continue this practice.
19. Accordingly,
in partial modification of Government orders eight and ninth read above,
Government hereby orders that every department shall place their proposals for
the continuation of temporary posts, and/or conversion of temporary posts into
permanent posts, before the Implementation Committee every year. The Implementation Committees shall make their recommendations to
the government in accordance with the guidelines prescribed in this
order. Thereafter,
each department shall calculate their likely direct recruitment vacancies in
permanent or temporary categories for the next one-year, and obtain approval of
government, in consultation with Finance Department as per Rules of Business,
for filling them up as per the prescribed mode of recruitment i.e., regular
recruitment or contract appointment or outsourcing as the case may be. Thereafter, the Finance Department will forward the requisition to
the concerned recruitment agencies for regular recruitment or contract appointment,
as the case may be, or authorize the concerned department to outsource the
support services in accordance with guidelines in Annex 2 to this order.
20. This Order shall come into force with immediate effect and shall
apply to all government departments, public undertakings, autonomous
institutions, local bodies, and all such institutions as receive grants-in-aid
for salaries from the State Government. Necessary
amendments shall be made in the Andhra Pradesh State and Subordinate Services
Rules 1996 and other relevant rules.
//7 //
21. All Special Chief
Secretaries/Principal Secretaries/Secretaries, Heads of Departments and
Collectors shall bring this order to the notice of all concerned institutions
for information and strict compliance.
(BY OREDER AND IN THE NAME
OF THE GOVERNOR OF ANDHRA PRADESH)
SATHI NAIR
CHIEF SECRETARY TO GOVERNMENT
To
All
Special Chief Secretaries to Government.
All
Principal Secretaries to Government.
All
Secretaries to Government.
All Heads
of Departments.
All
Collectors.
// Forwarded By Order //
SECTION OFFICER
// 8 //
Annex -1
(Refer to G.O.Ms.No.94, General Administration
(Ser.A) Department, Dated 28.3.2003.)
Guidelines for Contractual Appointments
1. In terms
of the Recruitment Policy enunciated by the State Government, the following
further guidelines are hereby prescribed for Contractual Appointments.
2. Separate Rosters: Contractual
appointments shall be made only in the case of direct recruitment quota under
various categories of Temporary Posts only. The Heads
of Departments and other administrative units/institutions under them shall
maintain separate rosters for permanent and temporary posts with effect from
April 1, 2003. The
present common roster shall be split and the regularly recruited persons shall
be first adjusted against the direct recruitment quota of permanent posts'
roster. The
remaining direct recruits shall be shown against the direct recruitment quota
under temporary posts' roster. As and
when fresh direct recruitment vacancies arise in the permanent posts' roster,
the direct recruits from the temporary posts' roster shall be adjusted in them,
and the consequential vacancies in the temporary posts' roster shall be filled
up through contractual appointments in accordance with these guidelines. No regular direct recruitment or
contractual appointments shall be made against any promotion quota posts and
vice versa.
3. Reservations: Reservations
for Scheduled Castes, Scheduled Tribes, Backward Classes, Women, Physically
Handicapped etc. shall apply for the vacancies to be filled up through contractual
appointments on par with regular recruitment.
4. Recruitment Agency: The recruitment agencies
responsible for regular recruitment shall also be responsible for contractual
appointments duly following prescribed procedures, which may be suitably modified by them to meet the urgency of
short-term contractual appointments. However,
the recruiting agency shall follow the usual procedure of open advertisement
and merit-based selection.
5. Conditions of Appointment: The
appointment of a person on contract basis shall be made under Rule 9 of Andhra
Pradesh State and Subordinate Services Rules, 1996. A person appointed under sub-rule (a) of Rule 9 of AP S & SS
Rules, 1996 shall not be regarded as a member of the service in which the post
to which he/she is appointed, is included, and shall not be entitled by reason
only of such appointment, to any preferential right to any other appointment in
that or any other service. The
Department or the person appointed may revoke the contractual appointment, or
discontinue the contract by giving one month's notice in writing on either
side. Further,
it should be made explicit in the
contract that, without further action, discussion, notice or reference, this
contract would automatically cease to operate on lapse of the contract period,
and both parties will
// 9 //
be
discharged of their respective obligations and liabilities without any formal
or informal communication.
6. Tenure: Contractual
appointments shall be made for a tenure not exceeding two years or the balance
period for which the relevant post has been created, whichever is less. In the event of the continuation of the temporary post, the
contractual appointment may be extended by the Appointing Authority, from time
to time, subject to the condition that the work of the individual has been found to be satisfactory, subject
further to the condition that the total tenure of any contractual appointment, including extension, if any, shall not exceed three
years. At the
end of the contract period not exceeding three years, the contractual
appointment shall terminate automatically. Under no
circumstances shall the individual be given any further extension
/re-appointment etc. beyond a period of three years. If the concerned Department desires to continue the temporary post
for more time, and wishes to get it filled up, it shall follow the procedure
prescribed in this Government Order as in the case of any fresh creation and
filling up of a post. However,
the contractual appointees may be considered on par with other candidates for
any fresh contractual appointment against the same temporary post or any other
contractual appointment/regular recruitment, if eligible otherwise.
7. Eligibility Criteria: Educational
and other professional qualifications for a contractual appointment shall not
be less than those prescribed for the regular recruitment. However, keeping in view the specialized nature of temporary
assignments, and the ample availability of professionally qualified manpower in
the market, the concerned Department/institution may lay down higher
educational/professional qualifications for the contractual appointments. Similarly, the Departments/Institutions may prescribe minimum
relevant experience norms to attract better and more experienced candidates who
can start contributing to the assignment immediately, without the need for any
initial training/orientation.
8. Emoluments: The
emoluments for contractual appointments shall be based on current market rates
for similar level of candidates with educational and professional
qualifications in private sector. Every
department shall constitute a Committee under the chairmanship of the concerned
Secretary to Government, with the concerned Head of the Department, a
representative of Finance department, and two or three experts from public and
private sectors, to assess the market rates and the corresponding emoluments to
be offered for contractual appointment. The
competent authority in government, in consultation with Finance Department,
shall approve the emoluments on the basis of the recommendations of the
committee. The
contractual appointees will be given only Consolidated Pay, and will not
be entitled to any other allowances or benefits such as Dearness Allowance,
HRA, LTC, Medical Treatment/Reimbursement, Pension etc. However, they would be entitled to usual TA/DA etc. on par with
regular employees of equivalent status for official travel. The expenditure on consolidated pay, and travel, shall be debited
to the relevant sub detailed heads under head '010- Salaries'. All Departments shall
// 10 //
submit
all number statements for contractual appointments on the same lines as they do
for regular employees to ensure that adequate budget provision is made to meet
this cost.
9. Leave: Persons
appointed on contract basis will be entitled to casual leave on par with
regular employees in the Department. However,
they shall not be entitled to any other kind of leave such as Earned Leave,
Half Pay Leave, Medical Leave etc.
10. Headquarters & Transfers: A person appointed on contract shall report at the place of
his/her posting at his/her own cost, which will be treated as his/her
headquarters. It shall
be mandatory for the person to reside at his/her official headquarters. His/her working hours shall be the same as regular
employees. Ordinarily,
contractual appointees will not be transferred to other posts or
stations. However,
the Department reserves the right to transfer contractual appointees to other
posts of equal status or another station due to exigencies of work, or the
performance of the individual, subject to payment of usual Transfer TA on par
with regular employees of equivalent status.
11. Disciplinary Control: Subject to the overall right of the Department to terminate the
contract on giving one month’s notice, or pay in lieu thereof, a person
appointed on contract basis shall be subject to disciplinary control in
accordance with the provisions of AP CCA Rules.
12. Terms of Contract Agreement: All persons appointed
on contract basis shall execute on agreement on a non-judicial stamp paper of
Rs.110, with two witnesses, and submit the same to the Appointing Authority
concerned at the time of reporting for duty, agreeing to the terms and
conditions of the contract. The
Finance Department shall standardize the format of the agreement in
consultation with Law Department and all departments shall adopt the same for
all contractual appointments.
SECTION OFFICER
// 11 //
Annex 2
(Refer G.O.Ms.No. 94,
General Administration(Ser.A) Department. Dated 28-03-2003)
Guidelines for Outsourcing of Support Services
1. With reference to the order cited above, the Government hereby
prescribes further guidelines regarding outsourcing of support services.
2. Posts to be linked to mode of outsourcing: Ideally, outsourcing of functions should provide all support
services. However,
it is likely that in some cases, the nature and complexity of work may require
continuation of the same individual as in the case of a Computer Operator or a
Draughtsman, to provide effective and efficient service. However, even in such cases it may be possible to outsource the
function to an IT service provider or an engineering or town planning firm to
provide computing or engineering drawing services. In most other cases, such as
vehicle driving, office staff support (Stenos, Attenders etc.), housekeeping
and sanitation, maintenance of building/equipment, operating lifts/photocopying
machines/office equipment, catering and running canteens, care-taking and
security etc., the responsibility to provide the support services can be fixed
on the service provider agency. In such
cases, while there would be a need to insist on the number of persons at various
levels to be deployed by the service provider, there may be no need to insist
on the continuation of the same individuals. This personnel management decision may be left to the service
provider agency as long as it ensures good quality service. Accordingly, the Implementing Committees shall recommend the types
and number of support service functions that can be outsourced to service
provider agencies on outright basis. Similarly,
the Implementation Committees shall make recommendations about the number of
non-core functional posts that need to be continued but for which no
recruitment will be done, but outsourcing functionaries from service provider
agencies would fill them up. The concerned departments will then obtain the
approval of government, in consultation with Finance Department, regarding the
number of non-core posts in Group III, IV and Class IV categories that the
government would no longer need to make fresh recruitment in future.
3. Redeployment before Outsourcing of Services: On the basis of the government approval on the number of non-core
functional posts earmarked for outsourcing, every Head of the Department shall
first assess the availability of existing permanent and temporary staff in the
department and work out their redeployment to meet their needs. This exercise of redeployment should be very rigorous and must
ensure equitable workload for all categories of staff across the whole
department. The Heads
of Departments would be free to suggest transfer of vacant posts across local
cadres to ensure equitable workload in different offices. They may also suggest
transfer of individuals along with their posts provided such transfers are
within the local cadre norms of the Presidential Order on Six-Point Formula.
// 12 //
4. Absorption of Surplus Staff: In the Government Order twelfth cited in the main G.O., the
government has decentralized the process of absorption of surplus manpower to
the district level. Every
Head of the Department shall consult the concerned District Collectors about
the availability of surplus manpower in the districts and take suitable
candidates from the District Collectors for their needs. On completion of this redeployment and absorption exercise, each
Head of the Department may work out his net requirement of additional staff,
along with its financial implications, and submit his proposals for permission
to outsource services.
5. Uniformity of work norms and rates of payment: The concerned Administrative Department in the secretariat shall
evaluate the proposal in consultation with the Finance Department, on the basis
of work norms and rates of payment suggested by the Department to ensure
uniformity across departments, availability of surplus staff at State and
District levels, and financial provisions in the Budget to meet the additional
costs. Once the formal approval of the competent authority in the government
has been obtained, the Finance Department shall issue necessary permission to
the Head of the Department for outsourcing services to the extent approved.
6. Agreement for Outsourcing of Services: The Head of the Department or the head of the Administrative Unit,
as the case may be, shall be competent to enter into a written agreement with a
registered service provider agency, which holds a valid licence under the
Contract Labour Act issued by the competent authority, to provide the contract
labour and has sufficient experience to render the relevant services. The authority competent to enter into outsourcing contract shall
follow the open and transparent tender procedure prescribed for selecting the
service provider agency. The
department shall also keep at least two more service providers in reserve, on
the same terms and conditions, to step in at short notice if the selected
service provider defaults in providing satisfactory service, and the contract
has to be terminated. No outsourcing contract shall be for a period of more
than one year. Subject
to the need and justification, and satisfaction of the competent authority,
such contracts may be extended on mutually agreed terms for one year at a time,
subject to the condition that the total period of the contract shall not exceed
three years. At the end of three years, or if there is no mutual agreement on
the terms of extension, the Department shall necessarily go through the whole
process of calling fresh tenders, giving equal opportunity to other service
provider agencies.
7. Terms and conditions of outsourcing contract: The contract shall specify the nature and quality standards of the
service required from the agency, and the number of persons in various
categories with their respective qualifications and experience, the equipment
and other consumables to be supplied by the agency, the time period of the
contract, the rates of payment prescribed for various functions and
functionaries and the penalties for various types of likely defaults in
satisfactory rendering of the services. The
concerned departments/heads of administrative units shall ensure that the
prescribed equipment, consumables and number of persons with proper
qualifications and training are deployed by the service
// 13 //
provider
at all times in accordance with the outsourcing contract. The departments shall
also reserve the right to demand change of equipment/personnel if their
services are not found to be satisfactory, in addition to levying penalties as
per the terms and conditions of the contract. If the service continues to be
unsatisfactory, the Department/competent authority shall exercise its right to
not only recover damages but also to terminate the contract and replace the
service provider with an agency kept in the reserve.
8. Accounting of Expenditure: The expenditure on outsourcing of functions shall be debited to
sub-detailed heads ‘330 - Payment for professional and Special Services’ and
for outsourcing of functionaries shall be debited to sub-detailed head ‘375 -
Remuneration towards contracting out services’. Usual treasury control shall
apply and therefore, all departments shall ensure that adequate provisions are
made in their budgets to meet the costs. Further
the concerned treasury officers shall not pass any bills if they are not
verified to be under proper and currently valid government sanction. Since the personnel working under outsourcing arrangements are not
directly engaged by government, there shall be no need to prepare number
statements as in the case of regular government employees.
SECTION OFFICER
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