2. Stores branch of CO/RO

3. Fundamental Principles of Public Buying Efficiency, economy and transparency Every authority delegated with the financial powers of procuring goods shall have the responsibility and accountability to bring efficiency, economy, transparency. The procuring authority should be satisfied that the selected offer adequately meets the requirement in all respects That the price is reasonable and consistent with the quality required The procuring authority must place on record, in precise terms, the considerations which weighed with it while taking the procurement decision. All materials received shall be examined, counted, measured or weighed when delivery is taken and approved quality and specifications are checked by a responsible officer. 2

4. Rules governing purchase of stores Purchase of goods upto the value of Rs.15,000/ only on each occasion may be made without quotations or bids on the basis of a certificate Purchase of goods costing above Rs. 15000/ and upto Rs.1,00,000/ on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee The committee will survey the market to ascertain the reasonableness of rate, quality and specifications and identify the supplier 3

5. Purchase through Central Purchase Organisation DG S&D will prepare and maintain item-wise list of eligible and capable suppliers (Registered suppliers) DG S&D will host the specifications, prices and other salient details of different rate contracted items, appropriately updated on the website 4

6. Payment procedure of purchases made through DG S&D Initially DG S&D makes payment to the contractors by cheque Simultaneously, DG S&D sends debit vouchers directly to concerned PAO and sends an advice to RBI directing it to debit the balance of DOP RBI debit the DOP account and submits the clearance memo to PAO Vouchers received at PAO will be sent to the concerned purchasing office for confirmation After getting the confirmation on vouchers, charge the corresponding Head of Account of Purchasing Office 5

7. Purchase of rate –contracted goods directly In case of purchase of rate contracted goods directly, the conditions for purchase be in line with those specified in the rate contract. The department shall make its own arrangement for inspection and testing of such goods where required. (Rule 147) 6

8. Purchase of goods by obtaining bids Advertised Tender Enquiry: If estimated value is above Rs. 25 lakhs Limited tender Enquiry: When estimated value is upto Rs.25 lakhs Single tender Enquiry: only a particular firm is the manufacturer of the required goods. Proprietary Article certificate is to be obtained 7

9. Contents of bidding Document Chapter 1: Instructions to Bidders Chapter 2: Conditions of Contract Chapter 3: Schedule of requirements Chapter 4: Specifications and allied Technical Details Chapter 5: Price Schedule Chapter 6: Contract form Chapter 7: Other standard forms, if any, to be utilised by the purchaser and the bidders 8

10. Two-bid system Technical bid consisting of all technical details along with commercial terms and conditions Financial bid indicating item-wise price for the items mentioned in the technical bid.2.9

11. Bid security Bid Security (EMD): Should be between 2% to 5% of the estimated value of the goods to be procured. To be furnished along with the bid. To be credited to UCR. Not required to obtain from bidders regd with Central Purchase orgn, National Small Industries Corporation or the concerned Ministry or dept Bid security of unsuccessful bidders to be returned after expiry of final bid validity and latest on or before the 30 th day after the award of the contract 10

12. Performance security 5% to 10% of the value of the contract It can be Account payable Demand Draft, fixed deposit receipt from a commercial bank, Bank guarantee Performance guarantee should remain valid for a period of sixty days beyond the date of completion of all contractual obligations, including warranty obligations of supplier. Bid security to be returned to the successful bidder on receipt of performance security. 11

13. Tender document Bidding document to self-contained and comprehensive Minimum level of experience, past performance, technical capability, financial position The procedure, date, time and place for sending the bids Date, time and place of opening of the bid Terms of delivery Provision to be made to enable the bidder to question the bidding conditions 12

14. Tender document Suitable provision for settlement of disputes, emanating from the resultant contract The bidding document should indicate clearly that contract will be interpreted under Indian Laws The bidders should be given reasonable time to send their bids The bids should be opened in public and authorised representatives of the bidders Mandatory components of tender forms are given from slide no.21 to 28 13

15. Tender Process In case of contracts of special nature for procurement of sophisticated and costly equipment, pre-bid conference for clarifying issues may be held, ahead of bid opening date. Negotiation with bidders after bid opening is discouraged, but in exceptional circumstances, may be resorted with lowest evaluated responsive bidder. The award of tender should be done within one month from the date of recommendations In case of L-1 backing out, re-tender If the lowest bidder is not in a position to supply the full quantity required, the remaining quantity be ordered from the next higher responsive bidder at the rates offered by the lowest responsive bidder 14

16. Procurement of services Preparation of scope of the required work/service eligibility and pre-qualification criteria Estimating reasonable expenditure Identification of likely sources Preparation of Terms of reference Preparation and issue of request for proposal 15

17. Procurement of services Two-bid system with technical and financial bids sealed separately Evaluation of technical bids Evaluation of financial bids of the technically qualified bidders Consultancy by nomination Monitoring the contract, by a task force approach and continuously monitoring the performance 16

18. Outsourcing of services In the interest of economy and efficiency outsourcing of services may be done Preparation of tender enquiry a. Details of work or service to be performed b. The facilities and inputs which will be provided c. Eligibility and qualification criteria d. The statutory and contractual obligations to be complied by the contractor 17

19. Outsourcing of services For estimated value of the work or service upto Rs.10 lakhs or less limited tender enquiry may be issued. The no. of contractors so identified for issuing limited tender enquiry should not be less than 6 For estimated value of above Rs.10 lakhs advertised tender enquiry to be published in a national newspaper Outsourcing by choice: detailed justification, circumstances to be explained and consultation with the Financial adviser is necessary 18

20. Tender publication It is mandatory to publish tender enquiries on the Central Public Procurement Portal The URL of CPP Portal is eprocure.gov.in 19

21. ePublishing System 20

22. Mandatory Components of tender form Schedule of tender contains Tender no. Tender form cost Last date and time of receipt of tender Amount of earnest money deposit Date and time of opening tender Venue 21

23. Components of tender form 1. Parties 2. Addresses 3. Earnest money 4. Preparation and submission of tender 5. Signing of tender 6.Technical bid 7.Commercial bid 22

24. Components of tender from 8. Validity of bids 9.Opening of tender 10.Criterion for evaluation of tender 11. Right of acceptance 12. Communication of acceptance 13. Time schedule for completion of work 14. Security deposit 15. Penalty 23

25. Components of tender form 16.Natural calamity, strike etc 17. Insolvency 18. Breach of terms and conditions 19. Subletting of work 20.Right to call upon information regarding status of work 21. Precautionary measures 22. Samples or experience certificate 24

26. 25. Terms of payment 26. Arbitration 25

27. Technical information and undertaking 1. Name of the tenderer /concern 2. Name of the concern (Sole proprietor or partnership firm or a company or a govt. department) 3.ACG 67 receipt No. Dated Name of the Post Office(for EMD) 4. Whether each page of NIT and its annexure have been signed and stamped 5. Proposed date to start work 6. Time required for completing the work 7. List of important works undertaken during the last three years whose summary is enclosed 26

28. Technical information and undertaking 8. Select list of major customers 9. Brief details of project personnel to be deployed 10. whether annual reports of the concern is enclosed 11. Whether copies of balance sheet for the last three years enclosed 12. Any other information important in the opinion of the tenderer Parameters and technical specification for executing the work Terms and conditions specific to the contract 27

29. Commercial information Total price for the work inclusive of all kinds of incidental charges and all taxes Details 28 Sl. NoParticularsNumberRateAmount 1 2 3 4Total

30. Annual maintenance contract Required for sophisticated and costly equipment Machinery is maintained free of charge during warranty period Preference should be to award to OEMs (Original Equipment manufacturers) Financial condition of AMC Large scale network of maintenance personnel and offices 29

31. Important Components of AMC Terms of Payment Departments’ obligation The time-limit within which work to be attended to be included Penalty clause In case of failure, liberty to get it repaired and the cost to be borne by the AMC.2.30

32. Steps involved in Disposal of obsolete stores The committee will recommend Recommendation is accepted by the competent authority Issue of tender/auction Disposal.2.31

33. Disposal of obsolete stores A committee at appropriate level to be appointed The committee shall consist of three members, one from administration, one from technical member having knowledge about the store and one from finance Authority competent to purchase a store shall be competent to declare the store as obsolete

34. Disposal of obsolete stores The committee should take into account the prescribed life –period of the stores If the life-period is not over, the committee should examine the conditions of the items and record reasons If an item has become obsolete on account of negligence/fraud or mischief of any govt. servant, it should be brought out.

35. Disposal of obsolete stores Where the articles are sold by public auction, the Head of Office of any Gaz. Officer should invariably attend the auction and record the final bid He should be present, when finally the articles are released when the process of weighing is involved. A report of surplus of surplus stores should be prepared in form GFR-17

36. Hardware required for Project Arrow Office Server Single-handed office- no server PO with 25 or less nodes- I CPU server More than 25 but less than 75 nodes- 2 CPU server More than 75 nodes-4 CPU server Nodes One node for every counter 20% of the number of counters as standby to be rounded up One node each for every supervisor and Postmaster 50% of the no. of back-office to be provided with nodes Others Kiosk for every Post Office 80 column printer One each for all counters except SB counters and also one each for standby node+50% of back-office nodes 136 column printer 2 for every HO 1 for Every SO except single-handed Pass-book printer 50% of all SB counters

37. Hardware required for Project Arrow Office High-speed printer-One for every HO+one for those offices where the number of Postmen exceeds 50 Laser printer-One laser printer for every delivery Post Office Bar-code scanner- One barcode scanner for all counters except SB counters and also one each for each standby node+one for every 15 Postmen Signature scanner-one for every 10 SB counters UPS- 0.4 KVA x (No. of nodes+ servers) Genset- Twice the capacity of UPS supplied

38. Weighing scale for PAPO One 10 KG weighing scale for every MPCM Counter If there are more than one MPCM counters, one of the weighing scales could be of 50 KG category One weighing scale of 10 Kg may be supplied if here is a full time treasurer. A separate weighing scale of 20 Kg category may be provided at delivery branch if there are more than 20 Postmen

39. Weighing scale for PAPO One 10 KG weighing scale for every MPCM Counter If there are more than one MPCM counters, one of the weighing scales could be of 50 KG category One weighing scale of 10 Kg may be supplied if here is a full time treasurer. A separate weighing scale of 20 Kg category may be provided at delivery branch if there are more than 20 Postmen

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