Presentation on theme: "DISCUSSION ON TENDERS AND CONTRACTS FOR RAILWAY DOCTOR’S 30.09.2011."— Presentation transcript:
1DISCUSSIONONTENDERS AND CONTRACTSFORRAILWAY DOCTOR’S
2CONTRACTWhen two or more persons have a common intention communicated to each other to create some obligation between them there is said to be an agreement.An agreement which is enforceable by law is a contract.According to the Indian Contract Act 1872 only those agreements are enforceable by law which are made by:-- The true consent of the parties- Competent to contract- For a lawful consideration & with a lawful Object
3Types of ContractsCONTRACTSEARNINGEXPENDITURESTORESWORKS
4TYPES OF TENDEROpen TendersSingle TenderLimited TenderSpecial Limited TendersQuotationsTwo Packet System
5OPEN TENDER Open tenders can be called against sanctioned works only. Approval of competent authority for inviting tender & tender documents is to be taken.Similar nature of work must be approved by PHOD.Tenders are to be called with Standard Eligibility Criteria--Should have completed one single work, for a min value of 35% of advertised tender value in last years-Should have received total contract amount of 150% of advertised tender value in last three years
6OPEN TENDERInvitation of open tender does not require finance concurrence.However in emergent cases when detailed estimate has not been sanctioned, pre-vetting of tender schedule by finance will be necessary.Powers to Accept Open Tenders ( RB No 2007/CE-1/CT/13 dated )- GM upto 100 Cr- PHOD upto 50 Cr- SAG/DRM upto 8 Cr- JAG upto 2 Cr
7OPEN TENDERThe standard eligibility criteria can be modified with concurrence of Finance and personal approval of GM.Credential from private individuals should not be accepted.Tender Notice period of min of 30 days should be there but CAO/DRM can reduce it to 21 days. It can be reduced to 15 days with Finance concurrence.Short tender notice is to be published in newspapers. However, detailed tender notice and tender documents must be uploaded of website.
8OPEN TENDERRailways should procure materials from IS(BIS) approved firms. Independent test should be conducted to ensure that the materials conform to IS (BIS) specifications.(RB No 2007/CE-I/CT/8 dated ).Based on CVC O/O No 15/5/06 and 23/7/07 dated awarding of tenders on nomination basis is banned.(10% higher rates).JV is permitted in tenders costing more 5 Cr.
9LIMITED TENDERThe minimum no. of contractors to be borne on the approved list should not be less than 10.Norms of approved list and subsequent criteria laid down by Board from time to time to be observed.The approved list of contractors should be updated as per extant instructionsContractors approved in higher monetary not to be allowed to participate for works in the lower monetary slab unless.- JAG/SG upto 25 Lakh- SAG/DRM upto 1 Cr- PHOD/CHOD up to 5 Cr
10SPECIAL LIMITED TENDER Should be invited when there is no approved listWork of specialised nature [To be approved by PHOD personally.] CAO can call for all type of works.Work of urgent matter [To be approved by GM personally.]May be invited from specialized and reputed contractors /organization/AgenciesNo of contractors included in the SLT should preferably be more than 6 but not less than 4.Tender Notice should be given to tenderers whose names have been approved.
11SINGLE TENDEREmergent Situation such as Accidents, Breaches involving dislocation to traffic.Works of specialized nature to be personally approved by the GMFalse urgency of work is shown.Rates awarded are on abnormally higher side.For ‘Doubling’ and ‘Traffic facility’ New Line and Gauge Conversion - CAO/C can call single tenders upto 2 Cr for last mile stone works.
12QUOTATION To dispense with tender and to invite and accept quotation Calling quotations of different grade will require prior finance concurrence.Quotation should not be for items, which can be executed through the existing contracts including Zonal contracts during the currency of zonal contract.Quotation should not be for fancy [expensive but of low utility] items.Quotations should normally be invited from at least three well experienced contractors/agency, not necessarily borne on the approved list.
13Stages in Contract Management Pre-tender StageTender Finalization StageExecution Stage
14Pre-tender Activities JustificationScope of work/ Schedule of QuantitiesEstimate for workDrawings/ SpecificationsTender conditionsRates/Cost of work (NIT Cost)Eligibility CriteriaNotice Inviting TenderTender Documents
15Notice Inviting Tender For publishing in newspapers the Tender Notice should not be lengthy and it should contain the following information only(RB No. 2008/CE-I/CT/21 dt )Name of work and its location, Approximate cost of the work, Cost of Tender Document/FormAddress of the office from where the forms can be purchased.Earnest Money to be deposited, Completion period of the workDate and time for submission of tender and opening of tenderWebsite particulars and from where complete tender documents can be downloaded.The website should also specify a date up to which the tenders may note updates/corrigendum/revised date of opening.Details of Postal dispatch of tender forms
16Notice Inviting Tender The detail tender notice should also contain:-Eligibility Criteria, Similar Nature of Work,Details of pre-bid meeting, if any,Name and designation of persons designated for seeking clarificationIf Law and Order problems are anticipated, tender dropping can be arranged at more than one place.(Rly.Bd’s L.No. 90/CT-I dt )Sale of tender documents should normally start from the date of publication of Tender Notice. However in any case period of sale of tender should not be less than 15 days. (Rly.Bd’s L.No. 03/CE/I/CT/85 dt )
17Tender DocumentsBid document should not contain obsolete, unwanted matter and conflicting provisions and therefore it documents must be standardized.The tender documents, tender schedule and tender notice must be by approved by competent authority before calling of tender.The blank spaces in the various clauses should be filled in.Alternative wordings required to be struck out are struck.The drawing numbers, where necessary are invariably entered.Books of Reference mentioned in the tender documents should be complete and applicable to particular work.It should be ensured that all the pages of are numbered and it is properly bound. Total number of pages and chapters in tender document must be mentioned.
18Special ConditionsThe General Special Condition of tenders should also include:-The special conditions for carrying out the special work should invariably be got approved from Headquarters office.(Ref: Bd’s L. No.99/CE-I/CT/43 dt,5.8.99).Maintenance Period; scope of maintenance (items covered under maintenance conditions).Construction and Maintenance of service roads.Responsibility of setting out of the work.Disposal of dismantled debris.Methods of Measurement of Hidden items.Organisations from whom test certificate/results are acceptableProcedure for collection and sending of samples for testing.
19Special ConditionsExplosives: Procurement, Transport, Storage, Regulations for Blasting.Site Facilities: Land, Electricity & Water, Availability, Charges TermsLiability in case of non-supply, delayed supply etc.Materials to be supplied; specify charges,Store from which material will be supplied, Store to which material can be returned,Assessment of weight – as per standard weight or as per actual? Length of rods to be supplied, Wastage Permitted,Disposal of wastage, Rate for Recovery,Safety and Custody of Material
20Tender Finalization Stage Tender Opening Place not mentioned explicitly.Not by the nominated officials (Executive and Finance representative) in presence of tenderers or their representatives.All tender forms, including corrections, not marked on the same day.Samples submission & other relevant particulars not marked.All corrections, over writings etc. not marked in red ink.Tender Opening Register not filled up.
21Tender Opening Register Tender Finalization StageTender Opening RegisterDate of Opening; Name of the Work; Tender Notice No; Nature of Tender (Open/SLT/Single)Number of forms sold and received.Late & Delayed Tender;Name of Tenderers; EM Deposited Particulars;Item wise rate quoted in figure and words both;Rebate in figure and words both;Signature of Tender Opening Officials along with name and designation;Signature of tenderers or their representatives present during opening.
22Comparative Statement Name of work, Authority of work, Tender notice number, Tender opening date & time,Tenders sold; offers received,Tender opened by- name of officialsEarnest money details,Validity of tendersEligibility/Credentials of tenderers,Special Conditions by tenderers,Samples submitted.Comparative Statement.Level of Tender committee and accepting authority
23Pre-qualification Criteria Pre- qualification is a process to select competent contractors having technical and financial capability commensurate the work.The pre-requisites of prequalification are:-Transparency- Fairness-Maintenance of competitionThe similar works should be clearly defined.The PQ criteria must be clearly stipulated in unambiguous terms.
24Eligibility CriteriaEligibility criteria is applicable to tenders costing more than 50 Lakh.Verification of CredentialsConsidering the credential in the name of other firmsInterpretation of Similar Nature of WorkScrutiny Works Credential CertificateFulfillment or otherwise not deliberated adequately and explicitly.In case of partnership firm, credential in the name of any of the partners can be considered.
25Tender CommitteeThe TC members must ensure their nomination before sitting for tender committee meetings. Normally TAA nominates tender committee as per delegation of power.There can be a standing tender committee.In case of Single Tender one stage higher TC( RB’s L.No.94/CE-I/CT/4 dt )In case of non- availability, higher grade officer can sit in the TC.If officer competent to be the accepting authority has to act as member of TC, the recommendation should be put up to next higher authority, for consideration.
26Tender Committee Minutes The TC must check and deliberate on the followingNecessary sanctions / approvalsValidity of tender, EM, Sample, Lone tender,Eligibility Criteria, Similar nature of worksReasonableness of RatesSingle offer in response to LT should be considered only in ‘very urgent’ casesTC and TAA should ensure that the tender documents were available for downloading and tender notices were uploaded before publishing in news paper
27Tender Committee Minutes The TC should give an undertaking that none of them has any personal interest in the companies/agencies participating in the tender process.TC should make definite recommendation with full facts and reasons etc.Factors cited for higher rates, should be explained adequately. High rates justified on the basis of urgency, proper facts should be based on record.Quantum & nature of work, Location and Site conditions including law and order conditionFavourable/unfavourable information suppressed.Tender Accepting Authority not indicated.
28Role of TAATAA cannot function as a rubber stamp and must apply his/her mind independently and such appreciation should be visible on record. The acceptance or otherwise must be recorded on the body of TC proceedings itself and not on the noting side.In case of any clarifications required, refer to TC, with clear queries, and not to any individual member.Not to use phrases like “Please discuss” etc.Should take decision in reasonable period of time (15 Days).
29Role of TAAIf Tender Accepting Authority wants to disagree with the Tender Committee or to agree with some members in non-unanimous proceedings, TAA must record the detailed reasons.TAA should not take a decision for awarding the contract or otherwise by relying on information from any other source except the Tender Committee.
30Negotiations Negotiation with L1 only. Counter offer tantamount to negotiation.Tenderer increases the rates for some items which is not admissible. Declaration from tenderers as per RB L. No. 2008/CE-I/CT/1 dated should be taken.In high value tenders, the tenderer is represented by their authorized representative who is competent and empowered to take meaning full and active part in the negotiation.If L1 refuses to accept the counter offer, the tender is to be discharged. (RB L.No 99/RS/(G)/779/2 dt )
31Stages in Supply Contracts Assessment of DemandClubbing of DemandFraming of SpecificationsTenderingDiscussions of offersPlacement of Purchase OrdersReceipt and InspectionQuantity Variation & Operation of Option ClauseExtension of Delivery PeriodCancellation of Contract and Risk Purchase
32Limited TenderFirms short listed in advance, based on past experience, expertise and specializationMinimum three firms to be includedRegistered/Approved Firms to be SelectedIn case any firm is U/R, approval of next higher authority (Min JA Grade) should be taken.Tender Inquires to be sent by Registered Post and Acknowledgement should be kept on file.In case of single offer against limited tender the tender should be discharged. However, in case of extreme urgency when urgency is expressed by SAG officer, the case can be accepted. ( JAG has limited power)
33Things to Avoid in LT Arbitrary selection of firms to be avoided Last supplier to be invariably includedRegistered/Approved firms to be called for Limited tendersFirms with better experience should not be ignored and firms with dubious credentials should not be selected.Inadequate time given for participation in tenderBogus firms should not be selected to inflate the numberRates become very important as the competition has been restricted
34Ring FormationRing/ Cartel formation among the bidders leads to elimination of competition and award of contract at exorbitant rates.At times, it is done with active collusion with officers concerned.The ring formation becomes more important in case of limited tenders thus an attempt should be made to identify sister concerns.In case of suspected ring formation with high rates, tender cancellation is advisable.Selection of sister concern has vigilance angle and is a clear case of ring formation.
35Receipt And Inspection Check forPre-dispatch inspection facsimile on the materialTest report of material/certificateVerify the quantityPeriodic testing of materialsCheck whether Shelf life is available as per POMRP mentioned on the supplied drug should not be less than the PO rateSupplies to be checked with reference to contract specifications.Suitability or otherwise for the end use cannot be a criterion for acceptance or rejection.
36Local Purchase of Medicines 7(a) Local purchase of medicines CMS up to 30,000/- in each case 7(b) Emergency purchase power of medical store including cancer drugs, cardiac, anti-haemophilia factor, Post renal transplant, growth harmone, ortho implants, HIV and any other emergency drugs- CMS up to 30,000/- in each case 7(c) Procurement of small value items whose aggregate value in a year is less than 20,000/- CMS full powers
37Local Purchase of Medicines Detailed guide lines have been provide vide CMD/ECR letter No ECR/MED/RMC/104/Div. Corresp datedAs per this letter7 (a)- Local PurchaseCommittee of 3 doctors should identify medicine shops within 1-2 KmRate agreement should be entered for one year with the firms who give maximum discount on MRPPayment should be on bill system basis
38Local Purchase of Medicines 7 (b)- Emergency PurchaseQuotations should be called from firms registered with CMD/ECR or their authorized dealers7 (c) AMI items-Limited tenders through registered firms
39ProblemsDifferent divisions are adopting different policies- Interpretation is different e.g.SPJ is procuring same medicines under 7 (a) and 7 (b)Even after entering into Rate agreement for one year purchases are being done from other firms after calling their quotations ( at higher rate also)Quotations for same medicine is being called so many times in a year without mentioning validity/periodSEE has called for tenders for value > 20,000/- and less than 30,000/- but not procured any medicines duringPayment of day today purchase is being done through imprest in some division whereas in other division it is through accounts
40Cleaning Contracts Quality is questionable Quality and quantity of cleaning material is not passed and measuredDeployment of man & machine is less than stipulatedNo checks by executives-even 20% check is not done and not recorded properly on MBArea to be cleaned on agreement is more than available on groundGarbage is not transported and thrown to the nominated places but thrown here and there
41Cleaning Contracts Similar work is not approved by PHOD MB is not being filled up properly and by nominated official (Even Group D staff is filling the MB)Officials deployed for cleaning do not wear uniform (florescent jacket etc) as laid down in agreementLog book of tractor/trailor not being maintained to measure the disposed qtyPenal Clause is not appropriateNo check on mandatory license e.g. labour registration, minimum wages act, safety rules etc by Railway although Railway is Principal Employer in such casesEligibility Criteria is different in different divisionSimilar work is not defined properly. It varies from place to place
42Accountal of MaterialWord similar type is misused and instead of reputed brand, locally made materials are usedMaterial are being taken without inspection/passing,Material should be issued in commensurate with progress and excess materials should be taken quickly.Disposal of rejected material and records
43Measurements Must be recorded by prescribed officials. Includes all tests etc. (Collection of Certificates).Proper records .Test Check (to be indicated clearly).Recording to be in MB only, at site of work.Location of work must be clearly mentioned.