DoE Advisory 2026: New Qualification and Evaluation Guidelines for Consultancy Procurement

Introduction

On July 22, 2026, the Procurement Policy Division (PPD) under the Department of Expenditure (DoE), Ministry of Finance, Government of India, officially released Office Memorandum F.No.1/3/2026-PPD . This critical advisory is addressed to the Secretaries of all Central Government Ministries and Departments to regulate the prescription of eligibility, qualification, and evaluation criteria when procuring consultancy services .

Following a sample evaluation of consultancy tenders floated by various Central Government procuring entities on the Government e-Marketplace (GeM) over the past three financial years, the Ministry identified multiple restrictive practices . To ensure transparency, fair competition, and optimal quality of service, the DoE has reiterated essential guidelines from the Manual for Procurement of Consultancy Services, Second Edition, 2025, mandating strict adherence across all administrative units .

Key Highlights of the DoE Office Memorandum

• Issuing Authority: Procurement Policy Division, Department of Expenditure, Ministry of Finance, Government of India .
• Order Reference: Office Memorandum F.No.1/3/2026-PPD, dated July 22, 2026 .
• Primary Objective: To curb anti-competitive tendering practices, such as excessively high turnover requirements and unjustified payroll staffing mandates in consultancy contracts .
• Manual Enforcement: Re-enforces compliance with Para 7.3.3 (Evaluation of Qualification) and Para 8.4.2 (Criteria and Sub-criteria) of the 2025 Consultancy Procurement Manual .

Detailed Summary: Directives and Manual Provisions

1. Issues Observed in Recent GeM Tenders

The sample study conducted by the Ministry revealed three major bottlenecks that artificially limit competition in public procurement :

• High Turnover Demands: Procuring entities often set minimum financial turnover criteria at 5 to 10 times the estimated value of the consultancy work . This restricts participation to only a few large consulting firms without guaranteeing superior service quality .
• Skewed Evaluation Weightage: Tenders frequently assigned greater scoring weightage to a consulting firm's overall corporate experience rather than the qualifications and expertise of the actual key personnel proposed for the project .
• Unrealistic Payroll Staffing: Mandating an excessively high minimum number of employees on the bidder's payroll as a mandatory eligibility condition, far exceeding what is actually necessary to execute the project .

2. Guidelines for Shortlisting Consultants (EoI Stage - Annexure I)

In accordance with Para 7.3.3 of the Manual for Procurement of Consultancy Services (2025), procuring entities must follow these principles during the Expression of Interest (EoI) phase :

• Pass/Fail Evaluation: Initial shortlisting should generally be evaluated on a "pass" or "fail" basis using simplified minimum benchmarks (e.g., completion of at least two similar projects and a reasonable minimum turnover) .
• Standalone Firm Experience: Qualifications must be based solely on the applicant firm's direct experience . Experience from parent entities, subsidiaries, affiliates, or individual experts working privately cannot be claimed .
• Key Personnel Evaluated Later: The qualifications and experience of Key Experts should not be evaluated at the EoI shortlisting stage; they must be assessed exclusively during the Request for Proposal (RfP) stage .
• Startup Relaxations: Qualification criteria (such as turnover and prior experience) can be relaxed for recognized start-ups, provided they meet the technical and quality specifications during the RfP stage .

3. Technical Proposal Evaluation (RfP Stage - Annexure II)

Under Para 8.4.2 of the 2025 Manual, the Consultancy Evaluation Committee (CEC) must evaluate technical proposals out of a total score of 100 marks . The advisory stresses that since key personnel ultimately dictate project performance, more weightage must be assigned to their qualifications and experience, especially in complex assignments .

Important Points for Central Government Procuring Entities

• Cap Turnover Multipliers: Avoid blindly fixing annual turnover criteria at 5 to 10 times the project cost without adequate, documented justification in the tender file . Establish an upper cap to prevent restricting competition to only the largest firms .
• Rationalize Payroll Demands: Any mandatory requirement for staff on the bidder's payroll must strictly match the actual manpower required for satisfactory project execution .
• Prioritize Human Capital: Allocate higher weightage (up to 60%) to the qualifications and experience of proposed Key Experts rather than the corporate brand name during RfP evaluations .
• Clarify Demerged Entity Rules: Tender documents must explicitly state whether demerged corporate entities can utilize the credentials of their parent entity during the initial five years post-incorporation .
• Historical Shortfall Documents Only: Procuring entities may only request shortfall documents (e.g., PAN, GST registration, or missing performance certificates for submitted work orders) that pre-existed before bid opening . No new supply orders can be solicited post-tender submission to qualify a bidder .

Conclusion

DoE Office Memorandum F.No.1/3/2026-PPD is a vital administrative step toward rationalizing public procurement of consultancy services across Central Government Ministries and Departments . By eliminating arbitrary turnover barriers, removing unjustified payroll mandates, and placing appropriate value on the expertise of key personnel, the Government of India aims to foster a fairer and more competitive procurement ecosystem on GeM and other portals .

Central Government employees, especially those involved in procurement committees, financial oversight, and tender evaluations, must ensure all future consultancy RfPs and EoIs strictly adhere to these reiterated provisions of the 2025 Manual .

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