Indian Railway Codes and Manuals-Stores code- Vol-I-Chapter-3 (III)
CHAPTER-III
PURCHASE OF STORES-POLICY AND RULES PURCHASE POLICY
301. Sources of
Supply.—There are four sources of supply or receipt of materials required by
Railways :—
(a) Purchases,
(b) Manufactured by Railway
Workshop,
(c) Returned Stores ; and
(d) Transfer of Stores from
other Railways or departments.
Of these, the purchase of stores is the most
important and this chapter deals with the rules prescribed for the purchase of
stores, (other than printing and stationery stores). The rules are in
accordance with the policy of the Government of India to make their purchases
of stores for the Public Service in such a way as to encourage the development
of the industries of the country to the utmost possible extent, consistent with
economy and efficiency.
302. Order of Preference.—In
making purchases, preference will be given in the following order :—
Firstly, to articles which arc produced in India
in the form of raw materials, or are manufactured in India from raw materials
produced in India, provided that the quality is sufficiently good for the
purpose;
Secondly, to articles wholly or partially
manufactured in India from imported material provided that the quality is
sufficiently good for the purpose;
Thirdly, to articles of foreign manufacture held
stock in India provided that they are of suitable type and requisite
quality;
Fourthly, to articles manufactured abroad which
need to be specially imported.
303. Quality.—In the case of
the first two categories mentioned in paragraph 302 above the condition is that
the quality is sufficiently good for the purpose, and for the third category
the condition is that the articles arc of suitable type and requisite quality.
This means that articles coming under the first two categories should be
accepted unless it is considered that the quality is definitely not up to the
standard required, even though the imported articles may be considered to be of
better quality.
304. DELETED
(Authority – Ministry of Railways (Railway
Board’s) letter No. 95 /RS (G) / 768 dt 17.08.1995 conveying Ministry of
Finance S.O.M No. F. 23 (2) –E.II(A)/92 dt. 24.6.92)--acs no.3 page
no.58
304. (A). Price
Preference to Products of Small Scale Industries: - For this purpose,
Railway purchases for the items of stores other than textile items reserved for
purchase from Handloom Sector, may be categorised under 2 broad heads:-
(i) Those
reserved for exclusive purchase from KVIC/Women’s Development
Corporations/Small Scale Sectors Units.
(a) At present 409
items are reserved for exclusive purchase from KVIC/Womens’s Development
Corporations/Small Scale Sectors Units.
(b) Items falling
under this category shall be subject to revision from time to time by Railway
Board, as per guidelines issued by Department of Supply, Government of India.
(ii) Others not so
reserved.
(Authority: Railway Board’s letter No.
98/RS(G)/779/10(CS) dated 30.05.2000 --acs no.11 page
no.59
304(B). Preference to Products of Public
Sector Undertakings.—Purchase / Price
preference to products of Public Sector Undertakings is given as per the
directives issued by Govt. of India from time to time ( Public Sector
Undertakings here means companies where not less than 51% of the paid up
share capital is held by the Central or State Govt.)
Authority:- Board's letter No. 92/RS
(G)/565/1/PEs dt. 23.06.1992 conveying Ministry of Industry, Bureau of Public
Enterprises O.M.No. DPE/13 (19)/ 91-Fin. dt. 07.05.1992 and Board's letter No.
92/RS (G)/ 363 /1/ PEs dt. 17.12.97 conveying Ministry of Industry, Bureau of
Public Enter-prises O.M.No. DPE/l3 (19) /91-Fin. dt.31.10.1997.---acs
no.2 page no.59
305. Currency of
payment.—All articles required to be purchased for Indian Railways, except
those which need to be specially imported, should be purchased on the condition
that delivery is made in India for payment in rupees in India. For
articles needing import, the payment should be in the currency of the country
of origin of the article imported or a currency widely used in international
trade, except for expenditure incurred in India including agency commission, if
any, which should be paid for in Indian Currency.
306. Deleted.
307. Payment.—Except in
special cases, full payment for stores should not be made against shipping or
other despatch documents, but only after delivery of stores has been taken by
the Receiving Officer and stores are found to be satisfactory in all respects.
Should the firms insist, advance payment, within limits specified by the
Railway Board, may be made to firms of repute and commercial standing against
shipping documents or a Railway Receipt provided the stores have been inspected
by the purchaser's nominee prior to the despatch and found satisfactory in all
respects and documentary evidence of such inspection is produced while claiming
payment. Where in an exceptional case involving import,
such inspection prior to despatch is not possible, payment against shipping
documents shall be made in consultation with Financial Adviser and Chief
Accounts Officer and after obtaining a bank guarantee for the amount of
payment.
308. In order to
obtain adequate publicity and so ensure economic purchase, tenders should be
invited in India and abroad also, if considered necessary or desirable to do
so, for supply of all articles unless the value of order to be placed is small,
or sufficient reasons to be recorded exist which indicate that it is not in
public interest to call for tenders.
309. Powers of General
Managers.—Subject to guidelines issued by the Railway Board from time to time
and issue of indigenous clearance by the appropriate authority, the discretion
to invite tenders from abroad will rest in the General Manager.
310. Publicity.—Tenders
should be invited from abroad as well as in India, wherever it is considered
necessary or desirable to do so in order to obtain adequate publicity and so
ensure economic purchase. The Indian Trades Journal published by the Director
General of Commercial Intelligence and Statistics, which is a government publication,
should be regarded as the standard medium for public advertisements in
India. Advertisements should also be inserted in the principal
newspapers in India at the discretion of the Purchasing Officer.
In the case tenders are invited from abroad,
agencies of the Indian Embassies abroad may be utilised for giving additional
publicity to the tender. Sufficient supply of tender documents, specifications
and drawings should be sent to them for sale to intending tenderers. Tender
Notices may also be sent to local Embassies or Trade Commissioners of countries
likely to be interested in supply of stores tendered. The tenderers will
normally be instructed to submit their tenders direct to the General Manager/
the Controller of Stores concerned in India.
Barring exceptional circumstances, sufficient
time as required by circumstances of each case should be given for submission
of tenders. Where purchases are to be financed through foreign loans or
bilateral agreements, the terms and conditions relating to the loan or
agreement should be given due consideration while inviting the tenders.
311. If the response
to any invitation to tender is poor owing to inadequate publicity or some other
reason, fresh tenders should be invited and measures taken to bring the
invitation to tender to the special notice of all likely tenderers.
312. Deleted.
313. Deleted.
314. Country of
Manufacture.—Tenderers should be requested to furnish information in regard to
the country of manufacture and/or origin of the material used in the
manufacture of the articles.
315. Evaluation of offers
involving payment in a foreign currency.—Offers for imported articles,
involving payment in a foreign currency shall, for the purpose of comparison,
be converted into Indian Currency at the official rate of B.C. selling foreign
exchange ruling on the date of opening of the tender.
(Authority: Board's letter No. 92/F(FEX)1/1
dt.10.08.1994.)--acs no.4 page no.60
316. Place of Delivery.—When
specifying the point or place of delivery, endeavour shall be made to lay down
terms which give all tenderers equal opportunities to put forward their lowest
prices. Subject to this, the purchase officers may exercise full discretion
regarding the point or place of delivery for articles available in
India. For articles needing import, the contracts should be
finalised on F.O.B./ F.A.S. basis. Where circumstances or a case
justify, import on C.F.R., C.I.F., F.O.R. Indian Port etc., may also be made
subject to the terms and conditions laid down by the Government of India from
time to time.
316A. Price preference for early delivery.—The
following clause should be invariably included in all tenders to enable a
higher quotation being accepted for earlier delivery in preference to a lower
quotation :—
Clause 'A'
"Special Condition.—It should be noted that
if a contract is placed on a higher tenderer as a result of this invitation to
tender, in preference to the lowest acceptable offer, in consideration of offer
of earlier delivery, the contractor will be liable to pay to the Government the
difference between the contract rate and that of the lowest acceptable tenderer
on the basis of final price, f.o.r. destination including all elements, of
Freight, Sales tax, Local taxes, duties and other incidentals in case of
failure to complete supplies in terms of such contract within the date of
delivery specified in the tender and incorporated in the
contract. This is in addition and without prejudice to other
rights under the terms of contracts".
In the acceptance of tender the following clause
should be incorporated after obtaining the specific acceptance of the tenderer
wherever necessary :—
Clause 'B'
"Special Condition.—It should be noted that
on the assurance of the earlier delivery at the rate of
Rs...............................F.O.R..................................offered
by you this contract has been placed on you in preference to the
lowest acceptable offer of....................................at the rate
of Rs..............................................
F.O.R.................................................... In
case of failure to complete supplies against this contract in terms hereof
within the date of delivery specified herein, you would be liable to pay to Government
the difference between the contract rate and that of the lowest acceptable
tenderer on the basis of final price F.O.R. destination including all elements
of Freight, Sales tax, Local taxes, Duties and other incidentals. This is in
addition and without prejudice to the rights of the Government to recover all
other losses and damages resulting from delayed supplies including the right of
cancellation and repurchase at your risk and expense".
317. Indian Agents for
tenderers abroad.—The tenderers abroad should be required to specify if they
have agents in India and if so the extent of authority delegated to such agents
and the duties they are expected to perform. They should also
indicate the commission payable to the Indian agents and whether they are
agreeable to payment of the commission in Indian currency.
318. Where tenders are
invited for plant and equipment, in which the erection of the plant at site is
to be undertaken by the successful tenderer, appropriate terms in regard to
delivery at site, erection, testing and commissioning should be included in the
invitation to the tender or in general specification and in the resulting
contract. In cases involving import, tenderers abroad should be
required to specify their agents in India, through whom delivery will be
arranged and who will arrange for erection at site and for carrying out such
tests on completion as may be specified in the contract.
319. Cost of tender
forms.—No account adjustments will be made between the Indian Missions abroad
and the purchasing departments in India on the value of tender forms sent and
issued on behalf of the purchasing authorities in India and the expenditure on
advertisement, postage charges, etc. in the Missions aborad.
320. Deleted.
321. Deleted.
322. Deleted.
323. Classes of
tenders.—The following are amongst the different methods of
obtaining tenders that may be adopted :—
(1) By advertisement
("Open" Tender);
(2) By direct invitation to a
limited number of firms ("Limited" Tender);
(3) By invitation to one firm
only ("Single" Tender or "Private" purchase).
The primary aim is to obtain the best value
possible for the money spent, and the tender system, in one form or another,
should be given very careful and serious consideration in all cases as one of
the most effective methods for keeping down rates. The exceptions made to the
general rule that tenders should be called for in all cases, arc based only on
practical considerations in order to avoid delay and unnecessary work in cases
of comparatively small value.
324. The "OPEN" Tender System.—This
system of invitation to tender by public advertisement in the most open and
public manner possible, should be used as a general rule and must be adopted,
subject to the exceptions noted in paragraphs 331 and 332 in all cases in which
the estimated value of purchase is (i) over Rs. 10 lakh in
normal circumstances, for procurement of items other than safety items (ii)
over Rs. 2 Crore in cases of emergencies and (iii)over Rs. 2 crores in cases of
procurement of safety items and procurement of items whose approved list of
vendors is issued by centralised approving agency i.e. RDSO/PU/CORE etc."
(Authority Board's letter No. 98/RS(G)/779/10
Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02-2009) --acs no. 7 &
17---page no. 62
325. When tenders are
invited by public advertisement, the issue of the tender forms need not be
restricted to firms whose names are on the list of approved contractors (see
paragraph 329). Firms not on the list, should, on enquiry, be
informed that they are at liberty, on payment of the prescribed fee, to tender
for the advertised requirements. Firms which are not borne on the list of
approved contractors should be asked to furnish following details along with
their quotation, in the prescribed proforma supplied to them with the tender
documents :—
(a) Income tax clearance
certificate, (b) the name and full address of their
Bankers, (c) particulars of their previous performance regarding supply of
stores similar to those under purchase, (d) details of equipments they
possess for manufacture of the stores including quality control and (e) the
details of technical staff employed by them.
When a tender which p'rima facie appears to be
satisfactory has been received from an unknown firm, steps should be taken
before any order is placed to ascertain whether the firm is capable of
executing the contract in a proper manner. If the enquiries prove satisfactory
the order, or a portion of it, may be placed with the firm. If the order or the
portion thereof is satisfactorily executed, the name of the firm should be
added to the list of approved contractors. If, on the other hand, the enquiries
prove unsatisfactory in consequence of which the order is not placed with the
firm, the result of the enquiries must invariably be recorded.
326. Deleted.
327. Deleted.
328. The
"Limited" Tender System.—Except in the case of
procurement of safety items, in case of procurement in
emergency and in case of procurement of items whose approved list of vendor is
issued by centralised agency, this system may ordinarily be adopted
when it is considered to be advantageous, in the case of orders the estimated
value of which does not exceed Rs. 10 lakh. In case of safety
items, in case of emergency and in case of items whose approved list of
vendors is issued by centralised agency i.e. Research Design Standards
Organisation (RDSO)/ Production Units(PUs)/ Central Organisation for Railway
Electrification (CORE), this system may be adopted in the case of
purchases, the estimated value of which does not exceed Rs. 2 Crore.
(Authority Board's letter No. 98/RS(G)/779/10
Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02-2009) --acs no. 7 &
18 page no. 62
329. List of Approved
Firms.—For the purpose of the "Limited" tender and "Single"
tender procedures, a list of firms, both Indian and Foreign, of known
reliability, which have been able to satisfy that they possess the necessary
equipment and facilities for production of stores which they offer to supply,
shall be maintained. The list should be subjected
periodically to examination and revision to weed out firms which have proved
unreliable. Any application from a new firm for
inclusion in the list should be considered on its receipt. Registration of
firms as approved suppliers should be done carefully after assessing the
capacity-cum-capability and financial standing of the firm. If
need be, services of Research Design & Standards Organisation, Lucknow,
R.I.T.E.S., New Delhi or Inspection Wing of DGS & D may be utilised for
this purpose. Monetary limit upto which individual orders could be placed on a
firm should be carefully fixed keeping in view, Bankers Report,
capacity-cum-capability and other financial information contained in firms
balance sheet, profit and loss account etc. And registration
should be done grading the firms according to following categories :—
(a) Those firms
capable of executing supply orders valuing Rs. 40 Lakhs and above.
(b) Those firms capable of executing supply orders
valuing Rs. 10 Lakhs to Rs. 40 Lakhs.
(c) Those firms capable of executing supply orders
valuing Rs. 5 Lakhs to Rs. 10 Lakhs.
(d) Those firms capable of executing supply orders
valuing each above Rs. One Lakh upto Rs. 5 Lakhs.
(e) Those firms capable of executing supply orders
valuing upto Rs. one Lakhs.
It has also been decided to revise the existing limits of Rs.
25,000/- and Rs.1 lakh as
last revised from those
as mentioned under Recommendation Nos. 66
and 67 of the said committee to Rs. 1 Lakh and Rs. 5
Lakh, respectively.
The firms that are registered for supply of orders valued
above Rs. 1 Lakh should invariably be a manufacturer or his
authorised agent. The firms who are registered for executing supply orders
valued above Rs. 1 lakh should be pre-inspected by an appropriate officer for
assessing capacity-cum -capability including effective quality control. The
registration should be treated as provisional, fill the firm satisfactorily
executes one order, but once the registration is confirmed, no discrimination
may be made between new and old registered firms. From this list of approved
suppliers, names of the firms to be invited to tender, shall be selected by all
the purchase officers.
(Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)--acs no. 19
page no. 62-63
Note 1.—Firms who are pre-inspected and
considered fit for inclusion in approved list for one Railway should be
considered for inclusion in the approved list of other Railways as well.
2.— If for sufficient reasons, which should be
recorded, it is decided to issue limited tender enquiries to firms not on the
approved list, approval of the next higher authority not below the rank of a
Deputy Controller of Stores shall be obtained. At the same time such firms
should be asked to get themselves registered with the Railway following
prescribed formalities.
3.— Limited tender enquiries should preferably
be issued to a minimum of three firms and the last successful supplier should
invariably be included.
330. The
"Single" Tender System.—This system may be adopted with regard to
small orders not exceeding Rs. 3 lakhs in value in the case of
nonproprietary articles (provided decision to adopt single tender system for
articles exceeding Rs. 5,000/- but less than Rs. 10,000/- in value is taken at
a level not lower than a Junior Administrative Grade Stores Officer) and Rs.
5 lakhs in case of proprietary articles (with PAC 'a' certificate) and
articles in the process of indigenous development subject to the rates quoted
being reasonable.
In the event of an emergent situation affecting repair,
maintenance, out turn, operation etc., which should be recorded in writing, the
purchase of nonproprietary articles may be made on single tender basis: -
(i) Up to Rs. 5
lakh per item by Controller of Stores; and
(ii) Up to
Rs. 7,500/- per item by Divisional Railway Managers in consultation with
Associated Finance.
There should be no re-delegation of powers of
Divisional Railway Managers at (ii) above.
(Authority Board's letter No. 2008/RS(G)/779/9 dated 0
6-02-2009)--acs no. 20 page no. 63
331. Powers of General
Managers to cover exceptional cases.—The "Limited" tender system may
be applied to orders the estimated value of which exceeds the limits specified
in paragraph 324 & 328 and the single tender system may be applied to
orders the estimated value of which exceeds the limits specified in
paragraph 330 with sanction of the General Manager and the concurrence of FA
& CAO subject to the following conditions :—
(a) that sufficient reasons
exist which indicate that it is not in the public interest to call for tenders
by advertisements ;
(b) that the demand is so
urgent that any additional expenditure involved by the elimination of open
competition must be incurred ; and
(c) that in the case of the
proprietary articles, the sanction of the General Manager is necessary only if
it is not possible to certify that a similar article is not manufactured or
sold by any other firm which could be used in lieu.
In each case a note should be recorded giving
the reasons for authorising the exception to general rule.
Note.— The Controllers of Stores are authorised
to exercise General Manager's Power under this paragraph to purchase Steel
Items on single tender basis from Stock Yards/buffer imports of M/s. SAIL,
TISCO, TISCO at main producer's stock yard prices for the steel items as fixed
by Joint Plant Committee or the Government.
332. The General Manager may
also decide not to call for tenders of any category in cases where sufficient
reasons exist to indicate that it is not in the public interest to call for
tenders. In all cases (except those of works contracts based on schedule rates
in force on the railway, the individual value of each of which is estimated not
to exceed Rs. 50,000/-), where the General Manager decides not to call for
tenders, the reasons shall be recorded and communicated by the General Manager
to his Financial Adviser. Should the General Manager's
power of decision under this rule be delegated to a lower authority (who will
exercise it subject to the same proviso) and should the Financial Adviser
consider the reasons adduced by such authority to be insufficient or other than
in the public interest, he shall represent his views to the authority concerned
and, if necessary, consult the General Manager.
333. Deleted.
334. Deleted.
335. Deleted.
336. Deleted.
337. Deleted.
338. Tender Notices shall
state.—(a) The short particulars of stores to be supplied or work to be
done, specifications, quantity etc.
(b) Where and when the tender
documents can be seen and obtained also the amount, if any, to be paid for such
documents.
(c) The place where, the date and
time upto which the completed tender forms will be received and time fixed for
opening of the tender.
65 338A. Tender
Documents.—Tender documents usually comprise of :—
(a) Instructions to
tenderers.
(b) I.R.S. and/or Special
Conditions of Contract.
(c) Specifications standard or
special (and plans/drawings as necessary).
(d) Schcdule(s) to the tender
giving full particulars of stores to be supplied or work to be done.
(e) Agreement form, to be
signed by the tenderer in token of his undertaking to supply the stores/carry
out the work detailed in the schedule at the rates indicated therein, on the
terms and conditions specified in the tender and his agreeing to keep the offer
open for acceptance upto a specified date.
(f) A statement of deviations
from the specifications.
(g) A statement of deviations
from the conditions of contract.
339. Tender forms shall
state inter alia :—
(a) The amount of earnest money
to accompany the tender and the nature of security deposit, if any, required in
the case of an accepted tender ;
Note .—The amount of earnest money to be
deposited should be sufficiently large to be a security against loss, in the
event of contractor failing to furnish the required security within the
appointed time after acceptance of his tender, or until such time as the sums
due to him form a sufficient guarantee, as the case may be. The earnest money
should be in cash or in the form of Deposit Receipts, Pay Orders, Demand Drafts
and Guarantee Bonds, which could be either of State Bank of India, or any of
the Nationalized Banks or any other Scheduled Commercial Bank.
(b) With whom or what authority
the acceptance of the tender will rest.
(c) Whether or not tenders
containing erasures and alterations or the tender documents will be
considered.
Note .—Such alterations constitute a fresh proposal
and cannot be disregarded but must definitely be accepted or rejected. All
tenders should, therefore, in equity be placed on the same footing in this
respect.
The forms for tender enquiries must provide for
the acceptance by the tendering contractor of I.R.S. conditions of contract and
special conditions of contract (if any). Form S-339 gives a specimen tender
form, which can conveniently be adopted.
Note 1.— In the case of imported goods, the country of
origin, maker's name and brand must be mentioned. In the case of indigenous
goods the tenderer(s) must specify maker's name, brand and whether the stores
offered are a product of Cottage or Small Scale Industry or medium/large scale
industry.
2.— Tenderers while submitting their quotations on forward
delivery subject to assistance for grant of Import Licence, should also furnish
the following information alongwith their R.O.R. price to enable this office to
arrange for necessary foreign exchange expenditure.
339A. Waiver of Earnest Money.—In the case of
tenders for the purchase of stores, where the tenderers arc unwilling to pay
earnest money, the Controller of Stores, in specific cases, may, in
consultation with Financial Adviser, relax the condition of earnest
money.
340. The right should invariably
be reserved to reject any or all of the tenders received without the assignment
of a reason.
341. Opening of
Tenders.—Tenders should be opened at the specified time and place by the
officer nominated for this purpose in the presence of an accounts
representative, who shall not be lower in rank than an Assistant/Section
Officer .
Unless good and sufficient reasons exist (which
must be recorded) all advertised tenders where estimated value of purchase
exceeds rupees 3 lakhs, should be opened in presence of such
of the tenderers or their agents who may choose to attend and the names of the
tenderers and rates quoted by them should be read out to the tenderers present.
While opening the tenders no opportunity should be given to any tenderer to repudiate,
amend or explain the rate or any condition quoted in the tender.
No tenders should be entertained from any
party in his private capacity who is directly or indirectly connected with
Government service.
(Authority Board's letter No.
98/RS(G)/779/10 Pt. I dated 02.07.99 acs no.7 page no. 67
341A. Total value of the tender shall be the
criterion for deciding the "competent authority" for acceptance of a
tender irrespective of whether the tender is decided in parts or as a
whole.
341B. Constitution of Tender Committee.—Subject
to directives issued by Railway Board, a Tender Committee, consisting of a minimum of three members, one
each from Stores, Accounts and Indenting Departments, shall be constituted by
the authority competent to accept the tenders, to deal with and
render advice in all cases of tenders valued over rupees ten
lakhs. When General Manager is the authority competent to accept a
tender, the Head of Department concerned shall arrange to constitute the Tender
Committee.
The Tender Committee should be so constituted
that an Officer recommending
acceptance of a tender in his capacity as a member of the Tender Committee
shall not also be the accepting, authority of the same tender. In such cases,
the Officer concerned should put up the Tender Committee's proceedings to the
next higher authority for acceptance, not withstanding the fact that the Tender
Committee's recommendations are within his own powers of acceptance.
(Authority Board's letter No. 98/RS(G)/779/10
Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02-2009) --acs no. 7 &
21 page no. 67
341C. A statement of comparative rates and other
tender conditions should be prepared by the branch concerned and verified by
the Accounts Department. It must be ensured that all tenders received, including
late and delayed tenders, are tabulated in the comparative statement and put up
to the Tender Committee constituted for the purpose, for its
consideration.
341D. As far as practicable, tenders should be
finalised within the initial validity of offers. To facilitate this all the
information/clarifications necessary for consideration of offers should be
called for at one time and not piecemeal. Such clarification should not change
the substance or price of the original offer.
342. The lowest tender
should ordinarily be accepted. Acceptance or rejection of tender is
left entirely to the discretion of the authority entrusted with this duty and
no explanation can be demanded of the cause of rejection of his offer by any
person making a tender. Such an explanation should, however, be recorded and
may be called for by superior authority. Reasons for departing from
recommendations of the Tender Committee should also invariably be recorded by
the accepting authority.
342A. Where special terms and conditions are
accepted, they should be incorporated in the contracts issued which should
ultimately contain no more or no less than what is contained in the accepted
tender or mutually agreed to in post tender correspondence or negotiations with
the tenderer, and approved by the accepting authority. Incorporation of terms
and conditions which are not in the tender or which have not been specifically
agreed to by the tenderer will not create a legally binding agreement but will
amount to a "counter offer" only, which shall require consent of the
tenderer before a binding contract takes effect.
342B. Intimation of Acceptance of Tenders.—A
contract is concluded upon communication of the acceptance which must be within
the time prescribed. Where post is the medium of communication between the
parties, the acceptance is complete as soon as it is posted by registered post
or under certificate of posting.
343. Freight Factor in
Purchase of Material.—Railways should in purchasing their requirements of
stores or materials, ordinarily obtain quotations from supplying
firms, F.O.R. destination and, in selecting tenders, also take
into consideration the freight element in finally determining the cheapest
source of supply.
344. Dividing of
Contracts.—Where warranted, (for reasons to be recorded), the tender quantity
may be split and tender decided in favour of one or more firms depending on
merit of each case, in consultation with FA & CAO and approval of the
authority competent to accept the tender, having regard to the following
factors :—
(i) Vital or critical nature of
items.
(ii) Quantity to be procured,
(iii) Delivery
requirements,
(iv) Capacity of firms in the zone of
consideration.
(v) Past performance of firms.
Where parallel rate contracts are awarded on two
or more firms, care should be taken that, subsequently each of the firms is
afforded relatively equal opportunity for making supplies to the railway by
purchase orders being placed on each in turn for quantities proportionate to
the quantity notified in the rate contract.
345. Locomotive and Rolling
Stock Components.—If after inviting tenders for locomotive and rolling of stock
components of any considerable value, which are manufactured by firms in India,
it is intended to place an order for imported articles, the sanction ot the
Railway Board should be obtained.
346. Contracts for Works
& Stores.—All tenders for Works and Stores valued over Rupees 8
crores in case of indigenous tender and over Rupees 2 crores involving
F.E. should be sent to Railway Board with recommendations for their
acceptance.
(Railway Board’s letter No. 98/RS(G)/779/10
Pt. I dt. 02.07.99) --acs no. 09 page no. 68
Note.—Girders, structural steel work, rolling
stock and other like materials which involve manufacture come under category of
works and not stores for the purpose of determining the powers to enter into
contracts.
347. Deleted.
348. & 349. DELETED
(Railway Board’s) letter No. 95 /RS (G) / 768 dt
17.08.1995 conveying Ministry of Finance S.O.M No. F. 23 (2) –E.II(A)/92 dt.
24.6.92)--acs no.3 page no.68 & 69
350. Inspection.—All articles whether manufactured
in India or abroad should be subject to inspection before acceptance and
articles for which specifications and/or tests have been prescribed by
competent authority, should be required to conform to specifications and/or to
satisfy the prescribed test or tests which may be carried out during
manufacture or before or after despatch from suppliers premises.
351. Nomenclature.—As far as practicable, standard
forms Of nomenclature or description should be employed in the invitation to
the tender to encourage free competition and the terminology in all cases
should be such as to show beyond all reasonable doubt what exactly is required,
the place of delivery or installation, the warranty and maintenance
requirements and other pertinent terms.
The appropriate specifications should be annexed
to or quoted in the invitations to tender, it should be stipulated in the condition
of contract that the articles supplied will be subject to inspection and/ or
tests prescribed in the specifications before acceptance. In cases where the
specifications or drawings cannot be annexed to the invitations to tender, it
must be specified where the specifications or drawings can be had or
seen.
Note 1. In case of stores, no particular make or
brand should be specified in the invitations to the tender, except in those
cases where a particular plant or machine patented under a particular name is
required or when spare parts are needed for such plant or machinery.
2. Any additional information, clarification,
correction of errors or alterations of tender documents should be promptly
advised to all those who had requested the original tender documents and
additional time as warranted should be given for submission of tenders.
352. In the case of
important construction works let out on contract, articles required for the
construction of such works may be supplied by the contracting firm provided
that when specifications and/or tests have been prescribed for such articles
they should conform to such specifications and/or satisfy such tests.
353. When tenders for
important construction works are invited, the officer concerned should also stipulate
in the invitation to tender, that the articles required for the construction of
such works must comply with specifications prescribed for such articles, which
should be annexed to or quoted in the invitation to the tender. The articles
should be inspected and/or tested in accordance with provisions of the
specifications before acceptance and use on the work.
354. All purchase officers
should take steps to ensure that adequate inspection arrangements are made in
each case. Services of Research Design and Standards Organisation,
Lucknow, Rail India Technical and Economic Services Ltd., New Delhi, Railway
Adviser, London or Director General of Supplies and Disposals as required may
be utilised for, this purpose.
355. Deleted.
356. As soon as contract has
been awarded for articles which require inspection and/or test during
manufacture or before despatch/shipment from abroad, a complete copy of the
contract with specifications, drawings, conditions of contract and all other
relevant documents should be sent to the nominated inspecting agency with
complete instructions for inspection and full address of the
manufacturers. The contractors should also be informed of the
agency, nominated to carry out the inspection during manufacture or before shipment
against the contract, with whom they should further co-ordinated.
357. Deleted.
358. In case of orders for
plant and machinery, whether purchased in India or obtained from abroad, which
include erection and test at site of work, arrangements for inspection and
tests after erection at site can also be made through Research Design &
Standards Organisation, Lucknow, Rail India Technical & Economic Services
or the Director General of Supplies & Disposals.
359. Inter-Departmental
Purchases.—Nothing in this chapter shall be deemed to prohibit the purchase of
articles by one department of railway from another.
360. Deleted.
361. Deleted.
362. Deleted.
363. Deleted.
364. Deleted.
Composition
of Tender Committee for dealing with tenders for purchase of Stores & Powers of Stores Officers for
acceptance of tenders as determined by Rly. Board
Paras
341 (b) & 342
Note: - *In units where there is no AGM, the
accepting authority will be GM against item 5 as well of above table.
(Authority
Board's letter No. 98/RS(G)/779/10/Pt. I &
2008/RS(G)/779/9 dated 02.07.99 & 06-02-2009) acs no. 10 & 22 page
no. 71
Multiple choice questions:
1.
What are the four sources of supply or receipt of materials required by
Railways?
- (a) Purchases, Imported goods, Returned Stores, and
Donations.
- (b) Purchases, Manufactured by Railway Workshop,
Returned Stores, and Transfer of Stores from other Railways or
departments.
- (c) Manufactured by Railway Workshop, Donations,
Purchases, and Returned Stores.
- (d) Donations, Purchases, Imported goods, and Transfer
of Stores from other Railways or departments.
Answer: (b) Purchases, Manufactured by Railway Workshop, Returned
Stores, and Transfer of Stores from other Railways or departments.
2.
In making purchases, which category of articles should be given first
preference?
- (a) Articles wholly or partially manufactured in India
from imported material.
- (b) Articles of foreign manufacture held stock in
India.
- (c) Articles manufactured abroad which need to be specially
imported.
- (d) Articles produced in India in the form of raw
materials or manufactured in India from raw materials produced in India.
Answer: (d) Articles produced in India in the form of raw materials
or manufactured in India from raw materials produced in India.
3.
What is the condition for accepting articles in the first two categories of
preference for purchases?
- (a) Articles must be the cheapest available.
- (b) Quality must be sufficiently good for the purpose.
- (c) Articles must be approved by the Ministry of
Railways.
- (d) Articles must be imported from abroad.
Answer: (b) Quality must be sufficiently good for the purpose.
4.
What is the currency of payment for articles purchased for Indian Railways,
except those needing special import?
- (a) US Dollars.
- (b) Indian Rupees.
- (c) Euros.
- (d) Japanese Yen.
Answer: (b) Indian Rupees.
5.
Who has the discretion to invite tenders from abroad for railway purchases?
- (a) Chief Accounts Officer.
- (b) Financial Adviser.
- (c) General Manager.
- (d) Controller of Stores.
Answer: (c) General Manager.
6.
What is the preferred basis for finalizing contracts for articles needing
import?
- (a) F.O.B./ F.A.S. basis.
- (b) C.F.R. basis.
- (c) C.I.F. basis.
- (d) F.O.R. Indian Port.
Answer: (a) F.O.B./ F.A.S. basis.
7.
What should be done if the response to an invitation to tender is poor?
- (a) Accept the lowest bid received.
- (b) Issue a new tender with lower specifications.
- (c) Fresh tenders should be invited and measures taken
to bring the invitation to tender to the special notice of all likely
tenderers.
- (d) Cancel the tender process and purchase from the
local market.
Answer: (c) Fresh tenders should be invited and measures taken to
bring the invitation to tender to the special notice of all likely tenderers.
8.
When tenders are invited for plant and equipment which involves erection at the
site, what should be included in the invitation to tender?
- (a) Detailed drawings and blueprints.
- (b) Terms regarding delivery at site, erection,
testing, and commissioning.
- (c) List of all potential suppliers.
- (d) Expected delivery schedule only.
Answer: (b) Terms regarding delivery at site, erection, testing,
and commissioning.
9.
What is the preferred method of obtaining tenders for purchases over Rs. 10
lakh in normal circumstances?
- (a) Limited Tender.
- (b) Open Tender.
- (c) Single Tender.
- (d) Private purchase.
Answer: (b) Open Tender.
10.
What details must firms not on the list of approved contractors furnish when
they submit their quotation?
- (a) Only an income tax clearance certificate.
- (b) Income tax clearance certificate, name and address
of bankers, details of previous performance, details of equipment, and
technical staff.
- (c) Only the name and address of their Bankers.
- (d) Only the details of their technical staff.
Answer: (b) Income tax clearance certificate, name and address of
bankers, details of previous performance, details of equipment, and technical
staff.
- The "Limited" Tender System may be adopted
for orders with an estimated value not exceeding how much for non-safety
items?
- A. Rs. 2 lakh
- B. Rs. 5 lakh
- C. Rs. 10 lakh
- D. Rs. 20 lakh
Answer: C. Rs. 10 lakh
- For procurement of safety items under the
"Limited" Tender System, the estimated value should not exceed:
- A. Rs. 50 lakh
- B. Rs. 1 crore
- C. Rs. 2 crore
- D. Rs. 3 crore
Answer: C. Rs. 2 crore
- The list of approved firms for "Limited" and
"Single" tender procedures should be maintained by:
- A. The Accounts Department
- B. The Finance Department
- C. The Stores Department
- D. The Research Design Standards Organisation (RDSO)
Answer: C. The Stores Department
- Which category of firms should be pre-inspected by an
appropriate officer for assessing capacity-cum-capability including
effective quality control?
- A. Firms capable of executing supply orders valuing Rs.
10 Lakhs and above
- B. Firms capable of executing supply orders valuing
above Rs. 1 Lakh
- C. Firms capable of executing supply orders valuing Rs.
5 Lakhs and above
- D. Firms capable of executing supply orders valuing Rs.
2 Lakhs and above
Answer: B. Firms capable of
executing supply orders valuing above Rs. 1 Lakh
- Under the "Single" Tender System, small
orders not exceeding which value can be adopted for non-proprietary
articles?
- A. Rs. 1 lakh
- B. Rs. 2 lakh
- C. Rs. 3 lakh
- D. Rs. 4 lakh
Answer: C. Rs. 3 lakh
- In case of proprietary articles, the estimated value
under the "Single" Tender System should not exceed:
- A. Rs. 1 lakh
- B. Rs. 3 lakh
- C. Rs. 4 lakh
- D. Rs. 5 lakh
Answer: D. Rs. 5 lakh
- Which authority can exercise the General Manager's
power to purchase steel items on a single tender basis?
- A. Chief Engineer
- B. Controller of Stores
- C. Deputy Controller of Stores
- D. Financial Adviser
Answer: B. Controller of Stores
- Tender documents usually comprise of the following
except:
- A. Instructions to tenderers
- B. Specifications standard or special
- C. Monetary policy
- D. Agreement form
Answer: C. Monetary policy
- When are tenders required to be opened in the presence
of tenderers or their agents?
- A. When the estimated value of purchase exceeds Rs. 1
lakh
- B. When the estimated value of purchase exceeds Rs. 2
lakh
- C. When the estimated value of purchase exceeds Rs. 3
lakh
- D. When the estimated value of purchase exceeds Rs. 4
lakh
Answer: C. When the estimated value
of purchase exceeds Rs. 3 lakh
- Which document is not typically part of tender
documents?
- A. IRS and/or Special Conditions of Contract
- B. Agreement form
- C. Financial statement of the tenderer
- D. Schedule(s) to the tender giving full particulars of
stores to be supplied or work to be done
Answer: C. Financial statement of
the tenderer
- A contract is concluded upon communication of
acceptance, which must be within:
- A. The initial offer validity
- B. 10 days of the tender opening
- C. 30 days of the tender opening
- D. 60 days of the tender opening
Answer: A. The initial offer
validity
- Who has the authority to revise the existing monetary
limits for firm registration as approved suppliers?
- A. Financial Adviser
- B. Controller of Stores
- C. Railway Board
- D. General Manager
Answer: C. Railway Board
- When dividing contracts, which factor is not
considered?
- A. Vital or critical nature of items
- B. Quantity to be procured
- C. Delivery requirements
- D. Financial background of the supplier
Answer: D. Financial background of
the supplier
- For non-proprietary articles in emergent situations,
the purchase on single tender basis up to Rs. 5 lakh per item can be made
by:
- A. Controller of Stores
- B. Divisional Railway Managers
- C. Financial Adviser
- D. General Manager
Answer: A. Controller of Stores
- The Tender Committee for tenders valued over rupees ten
lakhs must consist of members from which departments?
- A. Stores, Accounts, and Indenting Departments
- B. Finance, Stores, and Accounts Departments
- C. Engineering, Stores, and Finance Departments
- D. Accounts, Finance, and Legal Departments
Answer: A. Stores, Accounts, and
Indenting Departments
- Who is responsible for ensuring articles required for
construction works comply with specifications and tests?
- A) The contractor
- B) The officer inviting tenders
- C) The purchase officer
- D) The inspecting agency
Answer: B) The officer inviting tenders
- Which organization can be utilized for inspection
services according to the guidelines?
- A) Indian Railways
- B) Ministry of Railways
- C) Research Design and Standards Organisation (RDSO)
- D) Central Public Works Department
Answer: C) Research Design and Standards Organisation (RDSO)
- What must be done as soon as a contract requiring
inspection is awarded?
- A) Contractor must start manufacturing immediately
- B) Contract details and inspection instructions must be
sent to the nominated inspecting agency
- C) Payment must be made to the contractor
- D) Inspection agency must approve the contract
Answer: B) Contract details and inspection instructions must be
sent to the nominated inspecting agency
- What is the purpose of sending a complete copy of the
contract to the nominated inspecting agency?
- A) To ensure timely payment to the contractor
- B) To provide the agency with all necessary
instructions for inspection
- C) To inform the contractor about the inspection
- D) To initiate the manufacturing process
Answer: B) To provide the agency with all necessary instructions
for inspection
- What arrangements can be made for inspection and tests
after erection at the site of work?
- A) Inspection by the contractor's team
- B) Arrangements through RDSO or Rail India Technical
& Economic Services
- C) Inspection by a local third-party agency
- D) Self-inspection by the purchasing department
Answer: B) Arrangements through RDSO or Rail India Technical &
Economic Services
- Are purchases by one department of railway from another
prohibited by this chapter?
- A) Yes, always
- B) No, such purchases are not prohibited
- C) Yes, except in emergencies
- D) No, but only with prior approval from the General
Manager
Answer: B) No, such purchases are not prohibited
Comments
Post a Comment