GFR 2017 – Important Principal Interview Questions

1. What are General Financial Rules (GFR)?

Answer:
GFR are the rules governing financial management in the Central Government. They lay down principles and procedures relating to government receipts, expenditure, budget, procurement, grants, losses, advances, accounting, audit and financial accountability.

GFR 2017 applies to Central Government Ministries/Departments, attached and subordinate bodies. It is also applicable to Autonomous Bodies unless their approved bye-laws provide separate financial rules.

 

2. As a Principal, what is the most important financial principle you should follow?

Answer:
I would follow the principle of financial propriety, economy, transparency and accountability.

Under Rule 21, an officer spending public money should exercise the same vigilance that a person of ordinary prudence would exercise regarding his or her own money. Expenditure should not be more than what the occasion demands, and public money should be used only for legitimate public purposes.

Interview line:

“As Principal, I would ensure that every rupee of public money is spent economically, transparently, for the sanctioned purpose and in public interest.”

 

3. Can a Principal incur expenditure from public funds whenever there is a requirement?

Answer:
No. Under Rule 22, expenditure or liability involving public funds can be incurred only when it has been sanctioned by the competent authority.

Therefore, even if an expenditure is genuinely required for the school, I would first verify:

1. Whether funds are available.
2. Whether the expenditure is permitted.
3. Whether I have the delegated financial power.
4. Whether proper sanction/procedure is required.
5. Whether procurement rules have been followed.

 

4. What is financial propriety?

Answer:
Financial propriety means responsible and disciplined use of public money.

The major principles under Rule 21 include:

• Exercise prudence in spending public money.
• Expenditure should not exceed what the occasion demands.
• An authority should not sanction expenditure for its own direct or indirect advantage.
• Public money should not ordinarily be used for the benefit of a particular individual or section unless legally enforceable or pursuant to a recognized policy/custom.

 

5. What would you do if a school requirement exceeds your financial powers?

Answer:
I would not split the requirement or bypass the rules. I would process the proposal through the prescribed channel and obtain approval/sanction from the competent authority.

GFR specifically requires expenditure to remain within the authorized grant/appropriation, and expenditure beyond the authorized amount requires appropriate additional authorization such as supplementary grant/appropriation or an advance from the Contingency Fund, as applicable.

 

6. Can a school divide one large purchase into several small purchases?

Answer: No.

This is a very important interview question.

GFR states that a demand for goods must not be divided into small quantities to make piecemeal purchases to avoid the prescribed procurement method, bidding/reverse auction or approval of higher authorities.

Best interview answer:

“I would never split a procurement artificially to remain below a financial limit. The total requirement should be assessed and the procurement method prescribed under GFR should be followed.”

 

7. What is the provision for purchase of goods without quotation?

Answer:
Under Rule 154, purchase of goods up to ₹50,000 on each occasion may be made without inviting quotations or bids, subject to the prescribed certificate by the competent authority.

The certificate essentially confirms that:

• the goods are of the required quality/specification,
• the supplier is reliable, and
• the price is reasonable.

Interview Tip: Remember Rule 154 = ₹50,000 in the uploaded GFR version.

 

8. What is a Purchase Committee?

Answer:
Under Rule 155, where the prescribed conditions apply—for example, where the required item is not available on GeM—purchase above ₹50,000 and up to ₹5 lakh on each occasion may be made on the recommendation of a duly constituted Local Purchase Committee consisting of three members, subject to the conditions of the rule and the amendments contained in the document.

Important: In an interview, mention that the applicable ceiling and conditions should always be checked against the latest GFR/DoE instructions.

 

9. Why is GeM important for a Principal?

Answer:
GeM provides a government e-marketplace for procurement of goods and services. As Principal, wherever procurement is required through the prescribed GeM route, I would ensure:

• availability of the required item/service is checked;
• price reasonableness is assessed;
• prescribed procurement method is followed;
• proper documentation is maintained;
• no artificial splitting of demand takes place.

The GFR document also states that Government buyers may use GeM Business Analytics tools, including Last Purchase Price, to assess price reasonableness.

 

10. What is e-procurement?

Answer:
Rule 160 provides that bids are to be received through e-procurement portals for procurements, subject to the specified exceptions. Certain cases involving national security and strategic confidentiality may be exempted with the prescribed approvals.

As Principal, I would ensure procurement is conducted through the prescribed electronic platform wherever applicable.

 

11. When is Advertised Tender Enquiry generally used?

Answer:
Under the updated Rule 161 in this GFR document, invitation to tenders by advertisement should generally be used for procurement of goods of estimated value of ₹50 lakh and above, subject to the exceptions specified in GFR. The tender should be published through the prescribed platforms including GeM/CPPP.

 

12. What is Limited Tender Enquiry?

Answer:
Under Rule 162, Limited Tender Enquiry may be adopted when the estimated value of goods to be procured is up to ₹50 lakh, subject to the conditions of the rule.

The bidding documents are sent to registered suppliers, and the rule states that the number of supplier firms should be more than three.

 

13. What is bid security or Earnest Money?

Answer:
Bid Security, also known as Earnest Money, protects the purchaser against a bidder withdrawing or altering its bid during the bid validity period.

Under Rule 170, bid security ordinarily ranges between 2% and 5% of the estimated value of the goods. The rule also specifies exemptions, including eligible MSEs and recognized Startups, subject to the stated conditions.

 

14. What is the difference between financial sanction and availability of funds?

Answer:
A financial sanction authorizes expenditure by the competent authority, but expenditure also needs to be backed by valid provision of funds.

Rule 25 requires sanctions to indicate the relevant grant or appropriation from which expenditure will be met. Proposals should also indicate whether expenditure can be met through valid appropriation or re-appropriation.

 

15. What are the responsibilities of a Controlling Officer?

Answer:
The Controlling Officer must ensure that:

1. expenditure does not exceed budget allocation;
2. expenditure is incurred for the purpose for which funds were provided;
3. expenditure is in public interest;
4. adequate controls exist to prevent and detect errors and irregularities;
5. waste and loss of public money are prevented.

Principal Interview Application:
If I am functioning as a controlling/disbursing authority, I would continuously monitor budget availability, purpose of expenditure, utilization and supporting records.

 

16. What would you do if you discover misuse of school funds?

Answer:
I would not ignore or conceal it. I would:

1. secure the relevant records/documents;
2. report the matter through the prescribed channel;
3. determine the nature and extent of loss/irregularity;
4. initiate appropriate action under applicable rules;
5. cooperate with audit/investigation;
6. take corrective measures to prevent recurrence.

GFR Rule 33 requires loss or shortage of public money, departmental revenue, stores or government property to be reported immediately to the prescribed authorities, even where the loss has subsequently been made good.

 

17. Suppose school equipment worth ₹60,000 is stolen. What will you do?

Answer:
I would immediately report the loss through the prescribed administrative and financial channels and initiate appropriate investigation.

Under Rule 34, losses above ₹50,000 due to suspected fire, theft or fraud are to be reported to the Police for investigation as early as possible, and a formal investigation report should be obtained.

 

18. Who is responsible for loss caused due to negligence?

Answer:
Under Rule 37, an officer may be held personally responsible for loss sustained by Government through fraud or negligence on his/her part. Responsibility may also arise for another officer's fraud or negligence to the extent that the officer contributed to the loss through his/her own action or negligence.

 

19. What if the person responsible for a loss has already deposited the money?

Answer:
The loss should still be reported if it falls under Rule 33. GFR specifically states that loss is to be reported even when the loss has been made good by the party responsible for it.

This is a very good trap question for an interview.

 

20. What is an initial report of loss?

Answer:
Rule 33 provides for reporting at two stages:

First: Initial report — as soon as suspicion arises that a loss has occurred.

Second: Final report — after investigation, indicating the nature and extent of loss, errors or neglect of rules and prospects of recovery.

 

21. What is the financial year of Government?

Answer:
The Government financial year begins on 1 April and ends on 31 March of the following year.

 

22. What is Vote on Account?

Answer:
Vote on Account is a mechanism used when the Appropriation Bill is likely to be passed after the commencement of the financial year. It allows expenditure for a brief period pending completion of the parliamentary procedure for passing the Budget.

Importantly, funds made available under Vote on Account cannot be used for expenditure on a New Service.

 

23. What is Outcome Budget?

Answer:
Outcome Budget links budgetary outlays with outputs/deliverables and medium-term outcomes.

The outputs/deliverables are to be expressed in measurable or quantitative terms, and performance against specified outcomes can influence continuation of a scheme and the quantum of budget allocation.

Principal-level answer:

“In school administration, I would focus not merely on expenditure but on the outcome achieved from that expenditure—for example, whether expenditure on teaching-learning resources actually improves student learning.”

 

24. What is the role of audit in financial administration?

Answer:
Audit provides an important mechanism of financial accountability. Officers must provide reasonable facilities and information required by Audit and Accounts Officers.

Under Rules 39–40, subordinate authorities should provide the required information and should not withhold books, records or documents required by Audit or Accounts Officers.

 

25. What would you do if an Audit Officer asks for school financial records?

Answer:
I would cooperate fully and provide the required records, registers, vouchers and other relevant documents through the proper channel.

I would also ensure that records are properly maintained and readily traceable.

 

26. What is the importance of record maintenance under GFR?

Answer:
Financial records are essential for transparency, accountability, audit and verification.

Rule 320 states that government records connected with accounts should not be destroyed except according to the applicable prescribed rules. Where prescribed records are maintained electronically, appropriate backup and retention requirements must also be followed.

 

27. What is Permanent Advance/Imprest?

Answer:
Under Rule 322, Permanent Advance or Imprest may be granted for meeting day-to-day contingent and emergent expenditure. The amount should be kept to the minimum required for smooth functioning.

 

28. Can a Principal sanction an advance to a staff member?

Answer:
Under Rule 323, the Head of Office may sanction advances to a Government servant for purchase of goods/services or other special purposes required for management of the office, subject to prescribed conditions and delegated powers.

One condition is that the expenditure cannot be met from the available Permanent Advance and the normal post-procurement payment procedure cannot reasonably be followed.

 

 10 Situational Questions

Situation 1

The school urgently needs a projector, but the quotation process will take time. What will you do?

Answer:
I would not bypass financial rules merely because the requirement is urgent. I would examine whether the procurement can be made through the appropriate prescribed method, including GeM where applicable, and use emergency provisions only where the GFR conditions genuinely permit them.

 

Situation 2

A supplier offers you a personal gift after receiving a school order. What will you do?

Answer:
I would refuse the gift and ensure that the procurement remains completely impartial and transparent. The GFR Code of Integrity prohibits offering, soliciting or accepting bribes, rewards, gifts or material benefits intended to influence procurement unfairly.

 

Situation 3

A staff member suggests splitting ₹2 lakh expenditure into four purchases of ₹50,000 each.

Answer:
I would reject the proposal because it would amount to artificial splitting of demand to avoid the applicable procurement procedure. The complete requirement should be considered together and the prescribed procurement method followed.

 

Situation 4

The cheapest bidder is not technically suitable. Will you automatically select the lowest bidder?

Answer:
No. The procurement must follow the prescribed evaluation criteria. The lowest price alone does not justify selection if the bidder does not meet the required specifications or eligibility conditions.

 

Situation 5

An audit objection is raised against your school. What will you do?

Answer:
I would examine the objection objectively, collect the relevant records, consult the concerned financial/accounts authority where necessary, provide a factual reply and take corrective action wherever an irregularity is established.

 

Situation 6

A teacher says that because the expenditure is for students, financial rules can be relaxed.

Answer:
I would respectfully disagree. Public interest is important, but expenditure must still comply with the applicable financial rules. Student welfare and financial propriety must go together.

 

Situation 7

A supplier is pressuring you to choose his company.

Answer:
I would maintain complete impartiality and follow the prescribed procurement procedure. Any attempt at undue influence, collusion or improper conduct should not be permitted. The GFR Code of Integrity emphasizes transparency, fairness and prevention of collusive or anticompetitive behaviour.

 

Situation 8

You discover that school property has been lost, but the responsible employee says, “I will pay for it, so don't report it.”

Answer:
I would not accept this approach. If the loss is reportable under GFR, it must be reported even if the amount is subsequently recovered.

 

Situation 9

There is insufficient budget under one head but sufficient funds under another head. Can you simply transfer the money?

Answer:
No. I would check whether re-appropriation is permissible, whether the competent authority has the power, and whether the prescribed procedure is followed. I would never make an unauthorized transfer merely to utilize available funds.

 

Situation 10

What would be your financial management philosophy as Principal?

Excellent interview answer:

“My approach would be based on five principles—financial propriety, economy, transparency, accountability and outcome orientation. I would ensure that expenditure is within delegated powers and available budget, procurement follows GFR and applicable instructions, records are properly maintained, audit observations are addressed promptly, and public funds ultimately contribute to better educational outcomes.”

 

 Top 15 Rules for Principal Interview – Quick Revision

Rule	Topic	Remember
21	Financial Propriety	Prudence + economy + public interest
22	Public Funds	Competent sanction required
23	Delegation	Financial powers delegated under rules
25	Provision of Funds	Sanction must indicate grant/appropriation
26	Controlling Officer	Control expenditure & prevent loss
30	Lapse of Sanction	Generally 12 months if no payment
33	Losses	Immediate reporting
34	Fire/Theft/Fraud	> ₹50,000 → Police reporting
37	Responsibility	Personal responsibility for fraud/negligence
39–40	Audit	Provide records/information
54	Outcome Budget	Outlay → Output → Outcome
57	Expenditure Control	Stay within grant/appropriation
154	Purchase without quotation	₹50,000
155	Purchase Committee	Above ₹50,000 up to ₹5 lakh, subject to conditions
160	E-Procurement	Electronic procurement as prescribed

The core financial-management principles—particularly financial propriety, competent sanction, budget control, prevention/reporting of losses and procurement discipline—are directly relevant to a Principal's administrative role.

 GFR 2017 – PROCUREMENT INTERVIEW QUESTIONS

PART A – BASIC PROCUREMENT QUESTIONS

1. What are the main objectives of government procurement?

Answer:
The main objectives are:

• Economy
• Efficiency
• Transparency
• Fair competition
• Accountability
• Obtaining the required quality at a reasonable price.

GFR Rule 174 specifically emphasizes efficiency, economy and accountability in public procurement.

Best interview line:

“Government procurement is not merely about buying at the lowest price; it is about obtaining the required quality economically, transparently and through a fair and accountable process.”

 

2. What should a Principal check before initiating procurement?

Answer:

Before initiating procurement, I would check:

1. Whether there is a genuine requirement.
2. Whether funds are available.
3. Whether the item/service is available on GeM, wherever applicable.
4. Correct specifications and quantity.
5. Appropriate procurement method.
6. Delegated financial powers.
7. Price reasonableness.
8. Approval/sanction of competent authority.
9. Proper documentation.
10. Inspection and receipt mechanism.

 

3. What is the first principle you would follow while purchasing for a school?

Answer:

I would first establish the genuine requirement and avoid unnecessary or excessive procurement.

I would then ensure that the procurement is made according to the applicable rules, within available funds and for the intended public purpose.

 

 PART B – GeM-BASED QUESTIONS

4. Why is GeM important in government procurement?

Answer:

GeM provides an electronic platform for procurement of goods and services by government buyers. It promotes transparency, competition and efficient procurement.

As Principal, I would first check whether the required goods/services are available through GeM and follow the prescribed GeM procurement procedure.

 

5. Before placing an order on GeM, how will you ensure that the price is reasonable?

Answer:

I would examine available price information and use the appropriate GeM tools/data.

The GFR document specifically mentions using Business Analytics tools on GeM, including Last Purchase Price and the department's own Last Purchase Price, to ascertain price reasonableness.

Interview line:

“I would not assume that the lowest displayed price is automatically reasonable; I would document the basis for price reasonableness.”

 

6. What if the required item is not available on GeM?

Answer:

I would examine the applicable GFR provision and use the appropriate alternative procurement procedure.

For example, Rule 155 specifically refers to purchase through a Local Purchase Committee where the required item is not available on GeM, subject to the prescribed conditions.

 

7. Can a Principal purchase an item outside GeM simply because a local supplier is offering a lower price?

Answer:

Not automatically.

I would first establish whether the item/service is available on GeM and whether procurement outside GeM is permissible under the applicable rules/instructions.

The cheaper local quotation alone is not sufficient justification to bypass the prescribed procurement mechanism.

 

 PART C – QUOTATION & PURCHASE LIMITS

8. Up to what amount can goods be purchased without inviting quotations under Rule 154?

Answer:

Under the uploaded GFR version, goods up to ₹50,000 on each occasion may be purchased without inviting quotations or bids, subject to the prescribed certificate by the competent authority.

 

9. What certificate is required under Rule 154?

Answer:

The competent authority has to record that:

• the goods are of the requisite quality and specification;
• they have been purchased from a reliable supplier; and
• the price is reasonable.

 

10. What is the role of the Local Purchase Committee?

Answer:

Where applicable under Rule 155, the Local Purchase Committee recommends procurement for purchases above the specified threshold and up to the prescribed limit.

The uploaded GFR states that such a committee consists of three members, subject to the conditions of the rule.

 

11. Why should a Purchase Committee have three members?

Answer:

A committee-based decision promotes:

• collective responsibility,
• transparency,
• objective assessment,
• reduction of individual discretion, and
• better accountability.

Interview line:

“A committee approach helps ensure that procurement is not based on the unilateral decision of one individual.”

 

PART D – VERY IMPORTANT TRICK QUESTIONS

 

12. Can you divide a ₹2 lakh purchase into four purchases of ₹50,000?

Answer: Absolutely not.

The GFR specifically prohibits dividing a demand into small quantities to make piecemeal purchases to avoid the prescribed procurement process or higher-level approval.

 

13. What if the Principal says, “I am doing it only to save time”?

Answer:

Administrative convenience cannot be used as a justification for circumventing financial rules.

I would follow the prescribed procurement procedure and, where genuine urgency exists, use the appropriate urgent procurement provision rather than artificially splitting the purchase.

 

14. Can you split procurement across different financial years to avoid a procurement threshold?

Answer:

The requirement should be assessed genuinely and procurement should not be artificially structured to circumvent applicable rules or approval requirements.

The focus should be on the actual requirement, not on manipulating the procurement value.

 

15. Can a Principal select a supplier because the supplier is personally known?

Answer:

No.

Procurement must be based on prescribed eligibility, specifications, competition, price reasonableness and public interest—not personal relationships.

If there is a conflict of interest, it must be appropriately disclosed and managed.

 

PART E – TENDERING

 

16. What is Limited Tender Enquiry?

Answer:

Limited Tender Enquiry is a procurement method in which bidding documents are sent directly to eligible/registered suppliers.

Under Rule 162 in the uploaded GFR, it may generally be adopted where the estimated value of goods is up to ₹50 lakh, subject to the prescribed conditions. The number of supplier firms should be more than three.

 

17. Can Limited Tender Enquiry be used above ₹50 lakh?

Answer:

Yes, but only in the circumstances and with the justification prescribed under Rule 162.

Examples include genuine urgency where additional expenditure involved in not using advertised tender is justified, or where there are sufficient reasons recorded in writing showing that advertised tender is not in public interest.

 

18. What is Advertised Tender Enquiry?

Answer:

It is a procurement method where the tender opportunity is publicly advertised to obtain competitive bids.

Under the uploaded GFR, advertised tendering is generally prescribed for procurement of goods of estimated value of ₹50 lakh and above, subject to the stated exceptions.

 

19. What is the minimum time normally allowed for submission of bids?

Answer:

Under the cited provision, ordinarily at least three weeks should be allowed from publication of the tender notice or availability of the bidding document, whichever is later.

Where bids from abroad are contemplated, the minimum period should ordinarily be four weeks.

 

20. Can tender documents be charged from bidders?

Answer:

The uploaded GFR states that no cost of tender document may be charged for tender documents downloaded by bidders.

 

PART F – BID SECURITY / EARNEST MONEY

 

21. What is Bid Security?

Answer:

Bid Security, also called Earnest Money, protects the Government against a bidder withdrawing or altering its bid during the bid validity period.

 

22. What is the normal range of Bid Security?

Answer:

Ordinarily, it should range between 2% and 5% of the estimated value of the goods being procured, as determined and specified by the Ministry/Department.

 

23. Who may be exempt from Bid Security?

Answer:

The rule provides exemptions for specified categories including eligible Micro and Small Enterprises (MSEs) and recognized Startups, subject to the conditions prescribed in the rule.

 

PART G – PROCUREMENT ETHICS

 

24. What is the Code of Integrity in procurement?

Answer:

The Code of Integrity ensures that procurement is conducted honestly, fairly and transparently.

It prohibits practices such as:

• bribery,
• gifts intended to influence decisions,
• misrepresentation,
• collusion,
• bid rigging,
• anticompetitive behaviour,
• misuse of confidential information,
• coercion, and
• obstruction of audit/investigation.

 

25. A supplier offers you a costly gift before tender evaluation. What will you do?

Answer:

I would refuse the gift, maintain complete impartiality and ensure that the procurement process remains transparent.

If the circumstances warrant it, I would report the matter through the appropriate channel.

 

26. What is bid rigging?

Answer:

Bid rigging is an anti-competitive arrangement in which bidders manipulate the bidding process—for example, by coordinating bids—to obtain an unfair advantage.

It is prohibited under the procurement Code of Integrity.

 

27. What is conflict of interest in procurement?

Answer:

A conflict of interest occurs when an official's personal, financial or other interest may improperly influence, or appear to influence, the procurement decision.

As Principal, I would ensure disclosure and appropriate action to protect the fairness and integrity of the procurement process.

 

PART H – PRICE & QUALITY

 

28. Is the lowest price always the best procurement decision?

Answer: No.

The procurement decision must consider the prescribed specifications, eligibility, quality, technical suitability and applicable evaluation criteria along with price.

Excellent interview line:

“L-1 is important, but L-1 should be determined among technically responsive and eligible bidders as per the prescribed evaluation process.”

 

29. What will you do if the lowest bidder supplies substandard goods?

Answer:

I would not compromise on quality.

I would:

1. verify the specifications;
2. conduct inspection as prescribed;
3. document the deficiency;
4. take action under the contract terms;
5. seek replacement/rectification where applicable;
6. record supplier performance for future action.

 

30. Why is specification writing important?

Answer:

Specifications should clearly describe the actual functional and technical requirement.

Poor or unnecessarily restrictive specifications can:

• reduce competition,
• favour a particular supplier,
• increase cost, and
• create procurement disputes.

Therefore, specifications should be clear, objective, measurable and need-based.

 

PART I – PRINCIPAL-SPECIFIC CASE STUDIES

 

31. Your school needs 50 computers urgently before the academic session. What will you do?

Model Answer:

“First, I would establish the actual requirement and available budget. I would check the prescribed procurement route, including GeM availability. I would prepare clear specifications, ensure competent approval, assess price reasonableness and follow the applicable procurement procedure. Since urgency alone does not justify bypassing rules, I would use an urgent procurement provision only if its conditions are genuinely satisfied.”

 

32. The teacher-in-charge says, “We always purchase from the same vendor because he is reliable.” What will you do?

Answer:

Reliability of a supplier is relevant, but repeated procurement from the same supplier cannot be used to bypass competition or the prescribed procurement procedure.

I would follow the applicable procurement method and maintain transparency.

 

33. A supplier says he can provide the school with a 20% discount if you place the order immediately without tender.

Answer:

I would not accept the offer merely on that basis.

I would compare the proposal with the prescribed procurement procedure and establish whether procurement outside the normal route is permissible.

A discount cannot override GFR.

 

34. You find that the specifications were written in such a way that only one brand qualifies. What will you do?

Answer:

I would review the specifications and determine whether the restrictive condition is genuinely necessary.

If not, I would revise the specifications to make them functional, objective and non-restrictive, thereby promoting fair competition.

 

35. Only one effective offer is received after tendering. What will you do?

Answer:

I would not automatically cancel or accept it without examination.

The GFR states that where a limited or open tender results in only one effective offer, it is treated as a single tender contract, and the prescribed conditions and competent authority's approval/process must be followed.

 

36. A Purchase Committee member recommends a supplier who is his relative. What will you do?

Answer:

I would treat this as a potential conflict of interest and ensure that the matter is disclosed and handled according to the applicable procurement and conduct requirements.

The priority would be to protect the fairness and integrity of the procurement process.

 

37. What records should a Principal maintain for procurement?

Answer:

I would ensure proper preservation of relevant procurement records, such as:

• demand/indent;
• administrative approval;
• financial sanction;
• specifications;
• GeM records or tender documents;
• quotations/bids;
• comparative/evaluation documents;
• committee proceedings;
• purchase order;
• inspection/acceptance records;
• invoice;
• payment records;
• stock/asset entry;
• warranty/AMC documents;
• correspondence and audit records.

The GFR emphasizes preservation of government records connected with accounts and prescribed electronic records must have appropriate backup and retention.

 

15 RAPID-FIRE QUESTIONS FOR INTERVIEW

 

These can be asked very quickly by an interview board:

Q1. What is GeM?
Ans: Government e-Marketplace.

Q2. What is L-1?
Ans: Lowest evaluated responsive bidder as determined under the applicable procurement procedure.

Q3. Rule 154?
Ans: Purchase without quotation up to ₹50,000 per occasion, subject to conditions.

Q4. Rule 155?
Ans: Purchase through Purchase Committee under prescribed conditions.

Q5. Rule 160?
Ans: E-procurement.

Q6. Rule 162?
Ans: Limited Tender Enquiry.

Q7. Rule 170?
Ans: Bid Security.

Q8. Rule 174?
Ans: Efficiency, economy and accountability in public procurement.

Q9. What is demand splitting?
Ans: Artificially dividing a requirement to circumvent procurement procedures or financial limits.

Q10. Is demand splitting permitted?
Ans: No.

Q11. Normal Bid Security range?
Ans: 2–5% of estimated value, subject to the rule.

Q12. What is Code of Integrity?
Ans: Rules ensuring ethical, transparent and fair procurement.

Q13. Can the lowest price alone determine selection?
Ans: No; prescribed eligibility, technical responsiveness and evaluation criteria must be satisfied.

Q14. What is price reasonableness?
Ans: Establishing that the price paid by Government is reasonable based on appropriate market/procurement evidence.

Q15. What is the most important procurement principle for a Principal?
Ans: “Right requirement + right procedure + right price + right quality + complete transparency.”

 

One Very Important Interview Question

“If you become Principal, how will you ensure transparency in school procurement?”

Model Answer:

“Sir/Ma'am, I would ensure transparency at every stage of procurement. First, I would establish genuine need and avoid unnecessary purchases. I would ensure availability of funds and competent approval. I would use GeM wherever prescribed, follow the appropriate procurement method, avoid splitting of demands, ensure objective specifications and fair competition, verify price reasonableness, constitute committees wherever required, maintain complete procurement records, ensure proper inspection and stock entry, and cooperate fully with audit. Most importantly, I would ensure that no personal interest, favouritism or undue influence affects procurement decisions.”