Government Tightens Rules for Outsourced Service Contracts in State Departments

MP, June 14, 2026, Kolkata: In a move aimed at enhancing transparency and administrative efficiency, the state Finance department has issued fresh procedural guidelines regarding the engagement of agencies providing security, housekeeping, scavenging and diet supply services to government institutions, including hospitals and correctional homes.

According to the order, the department has frequently received proposals from various administrative departments seeking extensions of contracts for such agencies.

Many of these proposals were submitted either at the final stage of the existing contract period or even after the contract had expired, often with the explanation that a fresh tender process was underway.

To address the issue, under the new guidelines, administrative departments must begin the tendering process at least three months before the expiration of the current agency’s tenure.

The government has also advised departments to process tenders for these services preferably through the Government e-Marketplace (GeM) portal.

The Finance department has further clarified that proposals seeking extensions of tenure for security, housekeeping, scavenging and diet supply agencies will no longer be entertained as a routine matter.

Such extensions will be considered only under highly compelling and exceptional circumstances.

The order will come into effect immediately.