Acknowledgement

Behind every achievement lies an unfathomable sea of gratitude to those who have extended their support and without whom it would never have come into existence. To them I say my words of gratitude. I would like to express my deepest sense of gratitude to Mr. Akhilesh Mohan, ead!

Inventory and store department, "#$% for giving me this opportunity to undergo &ro'ect at "#$% (td. I would also like to extend my heartfelt gratitude to his constant encouragement and valuable insight, guidance and facilities at all phases of the pro'ect. I would like to thank Mr. Mohan! Manager, &urchase department for helping me in providing data and information regarding purchase procedure.

I would like to thank Mr. )))))))))))))))))))my pro'ect guide, for his valuable suggestion and guidance. The knowledge provided by them has been a great value addition for me and will go a long way in shaping my promising career.

(ast but not least, I would like to thank all those who directly or indirectly help me in successful completion of pro'ect.

PREFACE

*xperience makes man perfect. By facing practical situation, one can get new ideas. Theoretical studies are something, which came by practically. Management student can make use of whatever he or she gets from his or her Academic background. &ractical is the path through which one can reach his destination. But it is essential to have clear ideas to reach that destination and that is what theoretical knowledge means. In short, theoretical is the instruments which push back the practical one.

It has been a great experience to me to work and having the latest information about the scenario of market. "#$% is one of the leading companies in India. &urchasing occupies important function in the organi+ation, whether it is large or small. And also calls for efficient planning. I have tried to understand procedure for purchasing raw material. I have tried my best to get the necessary information for pro'ect which includes secondary as well as primary data.

TABLE OF CONTENTS %hapter #o. %ontent *xecutive ,ummary "b'ective and .esearch Methodology "b'ective of the ,tudy .esearch Methodology ,ources of data collection (imitation / %ompany &rofile Introduction Infrastructure "#$% 0ision "#$% Mission $lobal .anking Awards 1uture &lans . 0ision . Mission . "b'ective "rgani+ation ,tructure 2 &urchase &rocedure of "#$% %lassification of Material 1unctions of &urchase 3epartment &rocedure for placing indent on material management %entrali+ed43ecentrali+ed &urchases .egistration or *mpanelment of firm &urchase method Two Bid ,ystem ,hort listing of bidders and finali+ation of bid evaluation criteria &age #o.

Invitation of Tender %lauses in Tender %omparative ,tatement Technical %larification Tender %ommittee %onsideration of offer 5 6 %onclusion Bibliography

Executive Summary

In today7s dynamic world every organi+ation is striving hard to achieve best global practices to win over competitors and customers with utmost satisfaction. They are leaving no stones unturned for the same.

&urchase 1unction, as we know the important function in all type of organi+ations. 8ithout purchase of materials which are re9uired for producing goods, organi+ation is not able to meet the demands of goods.

&urchase procedures play a very important part in inventory management. %ost reduction measures can be taken right from the purchase process.

&urchasing professionals add value to organi+ations in controlling supply costs and sourcing supplies from different sources to offer the best pricing on a particular item. &urchasing within organi+ations is often overlooked and companies usually pay more for items than they really need. &urchasing professionals can save money for organi+ation if a company implements a mandatory purchasing policy re9uiring employees and departments to route all purchasing re9uests to the purchasing department or a particular employee

&urchasing professional:s goal to a company should be to provide the best pricing for everyone as well as communicating across the organi+ation to find out needs. .esearch is a critical component of any purchasing professionals daily work schedule in finding sources that offer 9uality products or services at a price that your organi+ation can afford.

%ompanies should encourage their purchasing staff to save money and to find the best overall value for the company:s money.

C APTER !" OB#ECT$%E AN& RESEARC 'ET O&OLO()

OB#ECT$%E OF T E ST*&)

1ollowing were the ob'ectives of the study;! -. /. 2. 5. 6. To study the main function of purchase department at "#$%. To study the purchase procedure followed in "#$%. To understand the problem faced by the purchase department. To know vendor selection procedure of the company. To give suggestions for improvement in purchase procedure, if any.

RESEARC

'ET O&OLO()

.*,*A.% 3*,I$#

A research design is a framework to prepare plan or study. It is useful as a guide to collect the data and analy+ing it. It is a blue print that is followed in completing the study. .esearch design is the conceptual structure within which the research will be conduct. Type of .esearch ; The study exploratory in nature.

SO*RCES OF &ATA COLLECT$ON+

&rimary data will be collected through interview of official staff of purchase department.

,econdary data will be collected through assistant ledger book, purchase department records, M.#, website, 'ournals, etc.

TOOLS AN& TEC N$,*ES OF &ATA ANAL)S$S+

3ata analysis will be done with the help of simple percentage and graphs. &ie and Bar chart will be used to analy+e data.

L$'$TAT$ON

-<

This pro'ect is restricted to study purpose only and can be used keeping in view the ob'ect that is made for.

/<

The respondent in the pro'ect may not reveal important 4 confidential information pertaining to the company policy and for this the pro'ect should be used keeping in view the said limitation.

2<

1inding of the study will be based on the assumptions that respondents have given correct information.

5<

The pro'ect is made with the help of secondary data available.

C APTER ! CO'PAN) PROF$LE

$ntroduction+

Born as a modest corporate entity within serene

imalayan settings on -5 th August -=6> as

%ommission, "il and #atural $as %orporation (imited ?"#$%<, has grown into a full fledged hori+ontally integrated upstream petroleum company. Today, "#$% is a flagship public sector enterprise and India7s highest profit making corporate, which has achieved the landmark since inception. "#$% has single!handedly scripted India7s hydrocarbon saga by;

@ *stablishing >.A= billion tonnes of In!place hydrocarbon reserves with more than 2BB discoveries of oil and gasC in fact, > out of the D producing basins have been discovered by "#$%; out of these In!place hydrocarbons in domestic acreages, Eltimate .eserves are /.5/ Billion Metric tonnes ?BMT< of "il &lus "il *9uivalent $as ?"F"*$<. @%umulatively produced AB2 Million Metric Tonnes ?MMT< of crude and 5A6 Billion %ubic Meters ?B%M< of #atural $as, from --- fields.

@"#$% has bagged -/B of the /2A Blocks ?more than 6BG< awarded in the A rounds of bidding, under the #ew *xploration (icensing &olicy ?#*(&< of the Indian $overnment. "#$% has bagged -D out of 2- blocks awarded in #*(& round 0III ?-5 as operator<. @ "#$%7s wholly!owned subsidiary "#$% 0idesh (td. ?"0(< is the biggest Indian multinational, with 5B "il H $as pro'ects ?= of them producing< in -6 countries, i.e. 0ietnam, ,udan, .ussia, Ira9, Iran, Myanmar, (ibya, %uba, %olombia, #igeria, #igeria ,ao Tome I3J, *gypt, Bra+il, ,yria and 0ene+uela. "0( had invested around .s 6B,BBB %rores ?Approx -B billion E, dollars<. "#$% is the only fullyKintegrated petroleum company in India, operating along the entire hydrocarbon value chain; @ olds largest share of hydrocarbon acreages in India. @ %ontributes over D= per cent of Indian7s oil and gas production. @ .efining capacity of about -/ MMT&A. @ %reated a record of sorts by turning Mangalore .efinery and &etrochemicals (imited around from being a stretcher case for referral to BI1. to the B,* Top 2B, within a year. @ Interests in (#$ and product transportation business. $NFRAST*CT*RE On./ore

@ &roduction Installations ;! /5B

@ &ipeline #etwork ?km< ;!-D,6BB @ 3rilling .igs ;! >= @ 8ork "ver rigs ;! 6= @ 8ell ,timulation unit ;!== @ ,eismic survey crew ;! 25 @ (ogging Enits ;! 2/ @ *ngineering 8orkshops ;! / @ 0irtual .eality %entre ;! 6 @ .egional %omputer %entre ;! 6 O00./ore

@8ell &latforms ;! ->B @ 8ell!cum!&rocess &latforms ;! 6 @ 8ater In'ection &latform ;! D @ &rocess &latforms ;! // @ 8ell ,timulation unit ;!D @ 3rilling .igs ;! = @ &ipeline #etworks ?km< ;! 5,6BB @ "ffshore ,upply 0essels ;! D2 @ Multi &urpose ,upport 0essel ;! >

@ ,eismic 0essels ;! -

ON(C %$S$ON

To be a world class "il and $as %ompany integrated in energy business with dominant Indian leadership and $lobal presence.

ON(C '$SS$ON

3edicated to excellence by leveraging competitive advantages in .H3 and technology with involved people.

Imbibe high standards of business ethics and organi+ational values. Abiding commitment to safety, health and environment to enrich 9uality of community life.

1oster a culture of Trust, openness and mutual concern to make a stimulating and challenging experience for our people.

,trive for customer delight through 9uality products and services.

(LOBAL RAN1$N(

"#$% ranks as the 2rd "il H $as *xploration H &roduction ?*H&< %ompany in Asia, and /2rd among leading global energy ma'or as per &latt7s /6B $lobal *nergy %ompanies (ist for the year /BB=.

 "#$% ranks /5th among the $lobal publicly!listed *nergy companies as per L&1% *nergy 6BM ?Ian /BBA< 1inance Asia -BB list ranks "#$% no - among Indian Blue %hips. "ccupies -66th rank in N1orbes $lobal /BBBM list /B-B of the world7s biggest companies for /B-B based on sales, profits, assets and market capitalisation. "#$% ranked 5B/nd position as per 1ortune $lobal 6BB ! /BB= listC, based on revenues, profits, assets and shareholder7s e9uity. A2AR&S

The Company won Petrofed Oil & Gas Industry Awards 2011 in three categories !"n#ironmental

$ustaina%ility& Company of the 'ear!( !)uman *esource +anagement& Company of the 'ear! and !Inno#ator of the 'ear& Team ,-on %y IOGPT.!/

It was %estowed with !+ost Attracti#e "mployer! Award in *andstad Awards 2011 -on !Golden Peacoc0 Award for $ustaina%ility! for the year 2011 Awarded with the Gold Trophy of $COP" +eritorious Award for !"n#ironmental "1cellence & $ustaina%le 2e#elopment! for the 'ear 2010 11 %y former President $mt/ Prati%ha 2e#isingh Patil

Anointed !Outstanding P$3 of the 'ear! at AI+A +anaging India Awards 2012 Awarded the 4est o#erall Performance PC*A Award in the 3pstream $ector ,Oil & Gas. for 5rd consecuti#e year

Awarded the !IC$I 6ational Award for "1cellence in Corporate Go#ernance for 2011! Certificate of *ecognition

Awarded 6IP+ 6ational Award for 4est )* Practices 7 2011 Ad8udged amongst 20 Top Companies for 9eaders 2011 in Aon )ewitt Awards !4est "nterprise Award! for the organi:ation in the +aharatna and 6a#aratna Category at the 22nd 6ational +eet of -omen in Pu%lic $ector ,-IP$.

It was %estowed with $afety Inno#ation Award 2011 in the Oil & Gas sector for inno#ati#e safety measures

O;9 )onoured with $COP" "1cellence Award for "1cellence and Outstanding Contri%ution to the Pu%lic $ector +anagement

F*T*RE PLANS

"#$% looks forward to become an integrated energy provider, with; @ #ew 3iscoveries and fast track development @ *9uity "il from Abroad @ 3ownstream 0alue Additions H 1orward Integration @ (everaging state!of!the art technology and global best practices @ #ew ,ources of *nergy @ &roduction from small and marginal fields

R %$S$ON OTo attain organi+ational excellence by developing and inspiring the true potential of company7s human capital and providing opportunities for growth, well being and enrichmentO.

R '$SS$ON

OTo create a value and knowledge based organi+ation by inculcating a culture of learning, innovation H team working and aligning business priorities with aspiration of employees leading to development of an empowered, responsive and competent human capitalO.

R OB#ECT$%ES

To develop and sustain core values To develop business leaders for tomorrow To provide 'ob contentment through empowerment, accountability and responsibility

 To build and upgrade competencies through virtual learning, opportunities for growth and providing challenges in the 'ob To foster a climate of creativity, innovation and enthusiasm To enhance the 9uality of life of employees and their family To inculcate high understanding of :,ervice: to a greater cause

OR(AN$3AT$ON STR*CT*RE

C APTER !4 P*RC ASE PROCE&*RE AN& LEA& T$'E ANAL)S$S OF ON(C

Aim of the Materials Management "rganisation is to procure, preserve and deliver Materials in proper time to ensure smooth progress of the pro'ect works and administrative machinery. *very effort will be made by the Materials Management "rganisation to meet the needs of the *ngineers and the ,cientists with regard to the Materials. But the success of the aspiration of the Materials Management depends very much on the proper planning and timely intimation by the concerned *ngineers 4 ,cientists to the Materials Management. It is, therefore, essential that these aspects are kept in view to ensure timely procurement of materials4services.

CLASSIFICATION OF MATERIALS

The purchase can be made with advantage on the results of classification of material and stock levels. It is, therefore essential that either of these points is given treatment before passing on to the purchase procedure.

1or procurement4accounting, the materials may be classified into following categories;!

a. Proprietary Materials& Proprietary materials are those which are manufactured %y the ma0ers of the main plants themsel#es such as spare parts for -illys< =eeps/ %. Non-Proprietary Materials& 6on Proprietary materials are those which are manufactured %y many firms such as chemicals and la%oratory e>uipments/ c. Stock Items& ?ast mo#ing items of regular consumption as also spares re>uired for running repairs and periodical o#erhaul of machinery and e>uipments are considered @$toc0 Items</

The senior most Materials Management officer not below *!- ?M.M."fficer< will have full powers to declare stores and spares as P,tock Items:.

d.

Non Stock Items& 6on stoc0 items are those which are to %e purchased against specific re>uirements of the indenting departments/ Capital Items&

e.

i. All items costing *s/A( 000B or more and with a life of more than one year are categorised as CCapital Items!/

Items costing less than *s/A(000B which ha#e a life of more than one year and ii. can %e regarded as complete units in themsel#es ,e/g/ small compressors( pumps( electrical motors( welding sets( electrical testing instruments etc/. are also to %e categorised as !Capital Items!/

Chief - MM Services will have full powers with the concurrence of Finance to declare an item costing less than s.!,"""#- as $capital item.

f. Stores & Spares& All the items( which cost less than *s/A( 000B and ha#e a life of less than one year are to %e treated as !$tores & $pares!/

The Inventories in %&'C have been broadl( classified into two separate groups e.g. $Stores$ and $Spares$. These two groups have been further subdivided into the following classes)-

Sl. No.

Class escription

E P Class Alp"a Co!e Co!e

Remarks

&

'

$TO*"$

1/ 2/ 5/ D/ A/

2rill Pipes Casing Pipes Other Pipes and Pipe fittings 2rill %its Other 2rilling $tores ,all other su% groups under 2T class e1cluding those stated a%o#e. "lectrical material i/e/ "lectrical fittings( ca%les( insulating materials etc/ including "lectrical instruments/ 4uilding +aterials and other Ci#il "ngineering +aterials including Tim%er

01 02 05 0D 0E

2P CP OP 24 2$

E/

0F

"G

F/

0G

4+

G/ H/ 10/ 11/

Oil -ell Cement Chemicals Chemicals including +ud and

0H 10 11 12

OC C+ O9 +9

P/O/9/ e/g/ Oil( Grease 9u%ricating material etc/

+etals e/g/ 4ounds( 4ars( Plates

etc/ 12/ 15/ General Tools on $toc0 +isc/ $tores i/e/ drawings materials( %olts( nuts( rope( screw( tents and tarpaulins etc Tu%ing( Pipes and ?ittings -ell )ead and I +as Trees 15 1D GT OT

1D/ 1A/

1A 1E

PT -I

SPARES

1E/ 1F/ i. ii. iii. i#. #. 1G/

$pares for tur%o drills and connected items $pares parts for drilling e>uipment #i:/ *igs and 2iesel "ngine( +ud 2iesel "ngine Pumps( Air compressors etc/ $lush Pump 2raw -or0s Crown 4loc0( Tra#elling $wi#el and *otary ta%le/ Other $pares $pare Parts for i.Production ">uipment ii. Other $pares 4loc0(

0A 21

T2 29

22

P2

1H/ 20/ 21/ 22/ 25/ 2D/ 2A/

$pare parts for cementing unit $pares parts for Geological ">uipment ,i/e/ ">uipment $pare parts e1clusi#ely usedfor for Geophysical Geological ">uipment ,i/e/ ">uipment $pare parts used for imported Transport e1clusi#ely for Geophysical ">uipment $pare parts for Indigenous Transport ">uipment $pare parts for "lectrical Plant and ">uipment $pare parts for Ci#il "ngg/ Plant and ">uipment

25 2D 2A 2E 2F 2G 2H

C+ G9 GP TP TI "P C"

2E/ 2F/ 2G/ 2H/ 50/ 51/ 52/

$pare parts for -or0shop Plant( +achinery and ">uipment Other spares i/e/ spares for other e>uipment not co#ered a%o#e such $pare parts for 4OP ele#ators as spares for instruments etc/ etc/ $pares for Computer )ardware $pares for 4oats and ?loating ;essels $pares for *adar Communication e>uipment $pares for Production Platforms ,-ell processBsupply.

50 51 52 55 5D 5A 5E

PP+ 4" C$ ;$ *C P?

Functions of purchase department:

The vital functions of *urchase +epartment are)

,i.

-hat >uantity to %uy

,ii.

-hen to %uy

,iii. ?rom whom to %uy

,i#. At what price to %uy

,#. -hat >uality to %uy

The Purchase 2epartment while ma0ing any purchase should see that &

All the purchases are made for the properly authorised re>uisitions clarifying the purpose for which these are re>uiredJ All the materials re>uisitioned full en>uiriesJ are duly ordered out from the right source after

The right type and >uality of the materials are %ought from the cheapest sourceJ

only the right >uantities are purchased in right timeJ deli#eries of all the materials are recei#ed %y stipulated timeJ supplier<s %ills are paid promptly to maintain good relations with the tradeJ ad8ustments on claims due to shortage or due to any discrepancy are securedJ

PROCE (RE FOR PLACIN) IN ENT ON MATERIALS MANA)EMENT

1/

*ariation in +,antity- Indents for annual re>uirement will %e formulated carefully after proper scrutiny and %ased on latest appro#ed plan/ 6ormally( no #ariation in >uantity should ta0e place %ut if the same %ecomes una#oida%le( it would %e limited to K 20L/ Indents for procurement of machinery B e>uipment B stores B spares will %e sent to concerned +aterials +anagement on prescri%ed format ,$T* E. prefera%ly on annual re>uirement %asis/ Piecemeal demands will %e a#oided/

2/

E+,ipment . OEM-/ise in!ents 0or stores & spares- Indents for procurement of stores and spares will %e raised e>uipment B O"+ wise/

5/

In!ication o0 so,rce o0 s,pply in In!ent- The indentors( while sending indent to concerned +aterials +anagement( will in#aria%ly indicate minimum three num%er of parties who are li0ely to >uote for supply of items as per designed specifications/ -here li0ely sources of supply are anticipated to %e lesser than three( the reasons for not rela1ing the specifications or for not splitting the wor0 B reducing the >uantity will %e %rought to the notice of higher authority,ies.( as indicated %elow( for appro#al %efore sending indent to concerned +aterials management ?or cases upto the #alue of *s/ 1/00 crore )ead of concerned 4usiness group not %elow " F le#el

a.

%.

?or cases %etween *s/1/00 crore and

Concerned *egional 2irector in case of *egions(concerned

upto *s/D/00 crores

GG+BG+ in case of Institutes and 2irector concerned in case of )>rs/

c.

?or cases a%o#e *s/ D/0 rores/

2irector concerned/

D/

E1pen!it,re Sanction-

The indent must accompany the expenditure sanction. It will be ensured that total expenditure sanction as well as unit!wise 4 group!wise expenditure sanction is indicated in the indent.
'. Speci0ications -

The indent must indicate clear and detailed specifications( drawings and samples( where#er necessary( so that there is no am%iguity left for the tenderers to >uote for correct materials/ The specifications should %e drawn up in general terms without >uoting reference to any particular firm or ta0ing it as model specifications as far as possi%le/ $pecifications ,which should %e as general and %road %ased as possi%le to generate competition. once gi#en alongwith the indent would %e considered as final and no re#ision later on B %ac0 flow for rechec0ing would %e entertained/ Any change in specification ,%efore tender is floated. #is M #is earlier contractBtender ,in case of re tendering. will need the appro#al of the competent authority as defined/ In case( specifications ha#e %een standardi:ed within O6GC centrally( appro#al of such central standardi:ing authority will %e necessary for ma0ing changes in the specifications/

The indentors %efore sending specifications must ma0e up their minds a%out the purchase of type of items re>uired and its specifications/ 6o team should %e sent after the tenders ha#e already %een in#ited to study the e>uipments/ $uch study( if necessary( %e completed %efore placing the indent/ The indentors should not as0 for proprietary materials or draw up specifications that would result in proprietary procurement( e1cept in cases( where

proprietary procurement is una#oida%le/ $pecifications should normally %e drawn in such a manner that there is a wide field of suppliers/ -hene#er specifications ha#e not %een standardi:ed( specifications will %e prepared %y the concerned 3ser B Indenting department/ $uch specifications shall need the appro#al of the competent authority/ -here#er specifications ha#e %een standardi:ed and appro#ed at the le#el of concerned 2irector B "C( no further appro#al will %e re>uired/ In!ent eli2ery ate3s4 an! (r5encyThe indent must specify the time %y which the material is re>uired/ In Indent( the definite deli#ery date and the place at which the materials are to %e deli#ered or dispatched( will %e indicated/ The use of such terms as <I++"2IAT"<( <A$ "A*9' A$ PO$$I49"<( <3*G"6T9' *"N3I*"2<( <P*IO*IT'<( as su%stitutes for the actual deli#ery dates are to %e a#oided and the deli#ery dates always indicated in red in0 in the following manner&

E/

a. %yOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO,date. ,meaning that the whole >uantity is re>uired %y the date./

there%y

%. OOOOOOOOOO,Nuantity %yOOOOOOOOOOOO,date. remainder fromOOOOOOOOOOO ,months. to OOOOOOOOOOO ,months. ,meaning that so much is re>uired %y a particular date and the %alance is re>uired %y monthly >uota./ c. ?rom OOOOOOOOOO,month. to OOOOOOOOOOOOOO ,month. ,meaning that e>ual monthly >uotas may %e deli#ered as appropriate./ 6. Assessment o0 Re+,irement-

The indentor will be responsible to assess the re9uirement and to ensure that there is no over provisioning.
G/ Co-or!ination /it" Materials Mana5ement4efore preparing indent( the indenting section should coordinate with the +aterials +anagement concerned/ This will help to ma0e specifications more realistic and would ena%le the indentor to ensure that there is no stoc0 in hand which can %e used( after adaptation ,if necessary./

H/

Item-/ise Estimate! Cost In In!ent-

The indentor should give the estimated cost item-wise in the indent. If the cost of the item at the time of placing the contract is more than the estimated cost, but the price difference is s. ,""#- or less, no reference will be made to the indentor. If the price difference is more than s. ,""#- then up to ,"- of the estimated cost or s. ,,"""#-, whichever is less, no reference need to be made to the indentor. In all other cases, a reference to the indentor will be necessar( to confirm that there is budget provision and that full .uantit( of materials is still re.uired. 10/ Minor *ariation in Speci0ication-

8here minor variations in specifications are suggested by the &urchase ,ection and are acceptable to the indentor and the cost is within the limits stated above, the indent need not be referred again to the 1inance or to the &ro'ect Manager.
11/ In!ication o0 Stan!ar! Si7es in In!ent-

As far as possible, indents should be for standard si+es. The &urchase ,ection may refer back to the indentor informing the latter of the standard si+es available, before purchasing non!standard si+es.
12/ ate o0 In!entIf the above points are not complied with b( the indentor, that indent will not be treated as a firm indent, till all points are clarified. The date on which all the points or irregularities in indent are settled that date will be considered the date of indent. The time of completing of suppl( will be considered from that date.

15/

Reco,pment o0 Stock ItemsIn the case of Stock items, the ma/imum 0 minimum and re-order levels will be fi/ed scientificall( and according to the instructions issued b( +irector 1Technical2 in consultation with Finance keeping in view past consumption, rates, lead time and safet( margins etc. %nce these levels have been fi/ed, the Materials Management 1Stock2 can take recoupment action without an( further reference to Finance. 3owever, the Materials Management 1Stock2 will re.uest the associated Finance to earmark funds before entering into an( purchase commitment.

1D/

The +aterials +anagement ,$toc0. will intimate its re>uirements to the purchase section through recoupment demands/

-6.

8herever maximum4minimum and re!order levels have not been fixed in the manner stated above, the indenting section will continue to assess its re9uirement and to place its indent on the purchase section after obtaining financial concurrence.
The re#iew of le#els in respect of $toc0 Items will %e carried out once a year/ )owe#er( if circumstances( such as change in the programme of operation or change in norms( necessitate it( the re#iew will %e carried out earlier/

1E/

#6.

A!-8oc P,rc"ases4s far as possible, adhoc purchases will be avoided. Items, for which there is repeated emergenc( purchase, will be added to the list of Stock Items, which would be progressivel( increased and the list of &onStock items correspondingl( reduced.

#9.

:,!5et Allocation5uarterl( statement of budget allocation and utilisation would be forwarded b( 4ssociated Finance to the concerned Materials Management # *ro6ect 3ead in respect of Stock and &on-Stock Items.

,7.

8hen a budget is drawn up on a functional basis and gives the break-up of the provision of materials, item wise indent up to s.!,"""#-within the budgetar( provision, need not be referred to Finance again for concurrence. 3owever, in the absence of budget on functional basis, prior financial concurrence will be obtained b( the indentor before placing indent on the purchase section, irrespective of the amount involved. The sanction from the competent authorit( will accompan( all indents.

$;.

)ro,pin5 o0 Items 8henever the purchase involves items to be purchased in groups, the same grouping should be intimated alongwith indent b( the indentor.

$#.

Separate in!ent 0or items in!epen!ent in nat,re

It is necessary that sieving of items is properly done at the indent stage itself so that items independent in nature are indented separately.
$$. Materials Co!e an! Cons,mption Sc"e!,le-

It will %e ensured that material code and li0ely consumption schedule of $tores and $pares is indicated in the purchase indent failing which the indent will not %e accepted/ In case of new %uys( pro#ision will %e made in tender document and supply order to effect that the supplier will send catalogue and manual of rele#ant item,s. to In#entory Control Cell under intimation to order placing authority within two months from the date of the receipt of supply order ,or as desired %y the order placing authority depending upon the deli#ery period./

In case of new %uys and where permanent codes ha#e not %een allotted *egional Corporate +aterials and 9ogistics Organisation ,*C+9O. will %e consulted who will act as Coordinating Agency of the Pro8ect B *egion and will interact with In#entory Control Cell to get the permanent code/ -here the material code is not communicated %y In#entory Control Cell within F days from the date of reference to them( temporary code will %e allotted %y the *C+9O/ Indent can %e raised %y the Indentor with such allotted temporary code with the prior appro#al of concerned *egional 2irector/ Permanent code num%er o%tained %y *C+9O will thereafter %e notified to concerned Indentor and Purchase $ection/

$%.

In!ent For Stores & Spares T"ro,5" RCMLO4ll Indents for procurement of stores and spares will be routed through CM9% at egions # *ro6ects and through CM9% in the 3.rs. who will scrutini:e the same with reference to stock in hand, material in pipe line and likel( consumption schedule. This e/ercise should not take more than five da(s.

CENTRALISE

. E-CENTRALISE

P(RC8ASES

In +rilling ;usiness 'roup, purchase functions of the following items would be handled as under)-

Sl. No. 1/ 2/ 5/ D/ A/ 4arytes C+C

Item Chennai

:ase

2ehradun +um%ai

Oil -ell Cement and Cement additi#es 4its 4low Out Pre#entors and accrssories

2ehradun

E/ F/ G/ H/ 10/ 11/ 12/

*ig ,purchase and ser#ice contracts. $pares and assem%lies for on land rigs $pares and assem%lies for offshore rigs -ell )eads Imported mud chemicals and mud additi#es Casings 50P and 20P re>uired for offshore operations e1clusi#ely Others whether indigenous or imported for on land and off shore operations 2ehradun +um%ai 2ehradun 2ehradun +um%ai B Chennai

*rocurement functions in respect of other ;usiness 'roups will be handled as per instructions issued from time to time.

*"GI$T*ATIO6 B"+PA6"9+"6T O? A ?I*+ RE)ISTRATION TEN ER :ASIS OF FIRMS FOR IN I)ENO(S P(RC8ASES ON LIMITE

For the purpose of sending en.uiries for indigenous purchases against limited tenders to be invited in the normal limit of the value of limited tender, registration of firms will be done b( 3ead of Materials Management1T;'2 at egions # *ro6ects # 3.rs keeping in view the re.uirement of the work centre. Firms willing to register at more than one work centre, will re.uire to get themselves registered with all such work centres. The firm1s2 will be registered for each group of items separatel( for which the( will need to send separate application alongwith application fee as indicated. In egistration Certificate also it will be made clear that the facilit( for e/emption from pa(ment of earnest mone( # furnishing of bid bond will be available in normal limited tenders onl(.

The following norms will be adopted for registration of firm?s< on tender!wise basis;!
i. Income Ta1 Clearance Certificate/ ii. $ales Ta1 *egistration num%er %oth $tate and Central/ iii. A0L of annual turn o#er of the item,s. B group of item,s. for which the party re>uires registration( duly certified %y a Chartered Accountant/

A non!refundable application fee of .s.6B.BB will be charged from each party for registration for each group of item?s<. In addition, a non!refundable registration fee of .s.6B4! for each group of item?s< will also be charged before issuing .egistration %ertificate if the party concerned meets norms.
-hile confirming registration num%er of the firm( it will clearly %e ad#ised that they should apply for renewal of registration at least 5 months prior to e1piration of the #alidity of registration/ *enewal of registration will %e done on the %asis of past satisfactory performance/

4 non-refundable fee of s.!"#- will also be registration of the firm after ever( three (ears.

charged

for

renewal of

In case a firm already registered with a wor0 centre( wants to get itself registered with other wor0 centre,s. for same item,s. then a fresh #erification of Income Ta1 Clearance( $ales Ta1 *egistration and annual turno#er will not %e necessary and the party will %e registered for the same monetary limit and period upto which its registration with initial wor0 centre is #alid/

?irms registered with 2G$&2 B 6$IC will %e treated as registered firms of O6GC for the item,s. they are registered with 2G$&2 B 6$IC for sending limited tender en>uiries pro#ided a formal re>uest alongwith non refunda%le registration fee of *s/A0/00 for each group of item,s. and proof of such registration from such firms has %een recei#ed/ &o application fee will be charged from such firms. It will %e ensured that en>uiries are sent to all firms registered for the item,s. re>uired to %e purchased/ In case the num%er of registered firms is large( en>uiries may %e sent %y rotation to ensure healthy competition and allowing all firms an opportunity to compete/

Any case for de registration of firms shall re>uire appro#al of an officer at " F le#el ,General +anager./

P(RC8ASE MET8O S

Purchase will %e made through any of the following methods&

i. Purchase through 2irectorate General of $upplies and 2isposals ,2G$&2. ii. iii. i#. Open tenders 9imited tenders $ingle tender

#. Petty purchases B )and >uotations/ #i. Annual *ate Contracts #ii. 4oard of Officers

1/ P(RC8ASE T8RO()8

)S&

There are three ways of purchase of materials through the 2G$&2&

a/ 4y placing indent on 2G$&2 who on his side in#ites the tenders from the dealers on his appro#ed list/

%/ Through 2G$&2 *ate B *unning Contract& In this case also the indents are to %e placed on 2G$&2 who places order on the firms with whom they ha#e concluded the rate B running contracts( such as petroleum products/

c/ Through *ate Contract concluded %y the 2G$&2& In this case no indent is to %e placed on 2G$&2 %ut the officer of the Organisation who is appointed %y the 2G$&2 as !2irect 2emanding Officer!( can place order direct with the firm on *ate Contracts concluded %y the 2G$&2/

2/ OPEN TEN ERS

*xcept for situations when the value of the tender is more than .s. /6.BB lakhs, open tenders will be invited. "pen tenders will be advertised through the press. Tender inviting ,ection shall forward the copy of #IT to %orporate %ommunications department for publishing #ITs in the newspapers in concise format. The number and type of newspapers in which #IT is to be published shall be decided by the %orporate %ommunication 3eptt. 1urther, the detailed #IT alongwith complete Tender 3ocuments will also be uploaded on "#$%7s tender website.

"pen tender bidding documents are to be issued to the bidders on application against prescribed tender fee. At least a month7s time should be allowed for submission of bids, after the date of publication of advertisement. In emergent cases, however, it may be curtailed to /- days.
In#itation of open tenders will not %e necessary in the following cases&

i. Purchases against 2G$&2 *ate ContractJ and ii. -here the sources of supplies are 0nown and limited

In#itation of 9imited Tender( in cases where open tender is to %e in#ited as per #alue of the tender( should %e restricted to e1ceptional cases( for which appro#al should %e o%tained from CPA not %elow 9e#el 1 e1ecuti#e for cases #aluing upto their purchase powers under +P D,%.( after recording #alid reasons/ )owe#er( concerned 2irector shall ha#e full powers( including for the cases falling under the powers of "PC/

Procedure for 9imited Tender( as stipulated should %e followed in such cases also/

.
In case( 9imited Tenders are proposed to %e in#ited ,as against open tender to %e in#ited %ased on the #alue of the tender.( then the %idders should %e identified and short listed %y the indentor( who should also determine and certify that short listed %idders meet the pre >ualification criteria ,technical. ad#ised as per the instructions in #ogue/ $uch short listing of the %idders and the PNC are to %e appro#ed %y the competent authority( as per the pro#isions/ Thereafter( pre>ualification criteria ,technical. need not %e incorporated in the tender/

5/ LIMITE

TEN ERS

For purchases of the value of advertised through the press.

s. <!."" lakhs or

less, the tender need not be

In accordance with the instructions issued from time to time, all limited tenders of value above 6.BB lakhs are to be posted on "#$%7s tender website, along with the pre!9ualification criteria which has been used for selecting the vendors. After framing the pre!9ualification criteria, indentor would forward the name of those vendors to the MM 3epartment who meet the pre!9ualification criteria. Besides issuance of the tender en9uiry to vendors who meet the pre!9ualification criteria, MM 3epartment would also publish the tender en9uiry on the

website along with the pre!9ualification criteria. After publication of the limited tender en9uiry on the web site, tender en9uiry can also be issued to those vendors who re9uest "#$% for issuance of the tender en9uiry and who meet the pre!9ualification criteria. ,uch re9uests are to be entertained within -B days of publication of the tender en9uiry on the web site. Indenting 3epartment would have to certify that such vendors meet the pre!9ualification criteria and based on this certification, en9uiry would be issued by MM 3epartment. The names and addresses of vendors to whom the (imited Tender en9uiry has been issued should also be posted on the website alongwith the &Q%. 1or limited tenders upto .s 6 lakhs, the purchase officer may send en9uiries to vendors known to "#$%. The en9uiries will also be sent to the registered vendors under the heading N.egistration of 0endors.O In!charge MM at each work center shall make necessary arrangements for registration of vendors, keeping in view of the re9uirements of the work center.
"n>uiries should %e sent to as many firms as possi%le to ensure competition/ In cases where the num%er of 0nownBregistered firms dealing with the materials under purchase is large( en>uiries may %e limited as gi#en %elow/ In such cases( firms will %e sent en>uiries in rotation ensuring healthy competition and allowing all firms an opportunity to compete o#er a period of time/ The list of selected suppliers( to whom en>uiries ha#e to %e sent( will %e appro#ed %y the competent purchase authority/ The minimum num%er of in>uiries to %e floated will %e as under&

?or tenders upto *s/1(00(000B

A en>uiries

?or tenders from *s/1(00(001B to *s/A(00(000B

?or tenders from *s/A(00(001B to *s/10(00((000B

?or tenders from *s/10(00(001 to *s/2A(00(000B

10

?or tenders #aluing less than or e>ual to *s/A 9a0hs( when the num%er of #endors 0nown to B registered with O6GC is less than the re>uired( the en>uiry may %e sent to all such #endors after o%taining the appro#al of an officer one le#el higher than the Competent Purchase Authority/

?or tenders #aluing a%o#e *s/A 9a0hs( if the num%er of #endors who meet the PNC are less than the re>uired( appro#al of an officer one le#el higher than the sanctioning authority shall %e o%tained %y the indenting department and con#eyed to ++ department alongwith the

indent/ )owe#er( concerned 2irector will ha#e full powers to appro#e such cases( including "PC le#el cases/

Proce!,re 0or p,rc"ases ,pto Rs ' lak"-

The dealing officer will float limited tender en>uiries Qas per specified format/ After receipt of offers within the closing time and date( the offers shall %e opened %y the nominated opening officers from ++ and ?&A/ After opening( the offers will %e handed o#er to the concerned dealing officer who shall ta%ulate the data from the offers in the comparati#e statement( to %e prepared within one wor0ing day/ In all cases where technical e#aluation is in#ol#ed( the duplicate copy of the offers are to %e referred within one wor0ing day to the indentor for technical comments/ The indentor Qnot %elow " 1R shall furnish the technical comments immediately( which in no case shall e1ceed two wor0ing days/

D/ P(RC8ASE ON SIN)LE TEN ER

a/ P,rc"ase o0 non-proprietary items

&urchase of non!proprietary items, on single tender basis, will be resorted to only in the situations of emergencies like flood, fire, civil disturbances, war, cyclones, blow out and operational break down. 3etailed 'ustification for resorting to emergency 4 operational break down should be recorded at the time of processing the proposal for approval of competent authority as per powers delegated.

%/ P,rc"ase o0 proprietary items-

An item is CProprietaryP( if that item ,)ardwareBe>uipmentB$oftwareBstores. is madeBde#eloped and mar0eted %y a particular firm ha#ing the e1clusi#e right to manufacture and sell it/ $uch proprietary ArticleB Item can %e procured( if the indenter ensures and certifies that only specific ma0e and model are accepta%le and no other ma0e and model is accepta%le as su%stitute on technical reasons/ Purchase of proprietary items should %e made if it is a%solutely essential/

3eclaration of an item as proprietary will be done with the approval of competent authority, as per powers delegated. owever, before submitting the proposal to competent authority for approval, the same will be examined by the In!charges of MM and 1inance disciplines of the respective work center. 8here there is an alternative to suggest, In!charges of 1inance 4 MM disciplines will advise the indentor to examine and consider the alternative.

Accordingly( for such purchases of proprietary items from single source( Indenter shall pro#ide a SProprietary Article CertificateT ,PAC. alongwith indent( as per following format& PROPRIETAR< ARTICLE CERTIFICATE 3PAC4

,i. The re>uired item,s. ,i/e/UUUUUUUUUUV. isBare manufactured only %y +Bs///////////////////////////////////////////////////////////////// and no other ma0e is accepta%le as su%stitute for technical reasons/ ,VWherever specific model / brand is required, the same should also be specified./

,ii. Appro#al of competent authority( as per item UUU//VV of 42P 200H ,as amended from time to time. has %een o%tained for purchasing the re>uired item,s. as a proprietary article/ (** indicate relevant BDP item./

,iii. The In charges of ++ and ?inance disciplines of the wor0 centers ha#e e1amined and cleared the proposal for purchasing the re>uired item,s. as a proprietary article/

,$ignature. 6ame and 2esignationUUUUU// 2ate& Place&

[Note& The certificate should be si ned b! the authorit! competent to approve the Technical specifications", in accordance #ith the value of the purchase$%

?eatures of the model B #ersion of the products are regularly upgraded %y the manufacturers/ $imilarly( new products and new technologies are %eing introduced #ery fre>uently and the mar0et conditions are li0ely to #ary at different point of time/ Therefore( the appro#al for purchasing an item as proprietary article ,PAC. should %e o%tained separately on each occasion of its purchase/

The purchase of proprietary articles against the &roprietary Article %ertificate should be made either from "riginal *9uipment Manufacturer or from Authorised 3ealers43istributors4 ,tockists of "riginal *9uipment Manufacturer ?and not through a third party<.

It must be ensured that such items purchased against &A% are consumed within one year from the date of receipt of the material.
c/ P,rc"ase o0 stan!-=y e+,ipment & accessories an! spares 0rom OEM-

,tand by e9uipment and accessories which form part of the main e9uipment, and are re9uired for ready replacement and which cannot be replaced with other makes on technical grounds can be purchased from "*M or authori+ed 3ealers43istributors4 ,tockists of "*M, as proprietary article without &A% provided Indenter certifies that no other make or model can be used as replacement on technical ground and competent authority approves the same in consultation with MM. ,pares for vehicles 4 machineries 4 tools 4 e9uipment, which are manufactured only by particular firms and for which no substitutes are available are to be treated as proprietary articles. #o &A% would be necessary for procurement of such items. 1or carrying out such purchases, approval of competent authority as per powers delegated. owever, before submitting the proposal to competent authority for approval, the same will be examined by the In!charge of MM discipline of the respective work center. These items are to be procured from "riginal *9uipment Manufacturers 4 Authorised 3ealers43istributors4 ,tockists of "riginal *9uipment Manufacturers.
For procurement of spares of proprietar( # non-proprietar( following procedure will be followed)nature, the

A/ PETT< P(RC8ASES. 8AN

>(OTATIONS

Petty P,rc"ases-

&urchase upto .s. -B,BBB.BB at a time may be made without formal en9uiries or without obtaining hand 9uotations by Eser 3epartments themselves. A statement of petty purchases made by the Eser 3epartments will be sent to the Materials Management concerned at the end of each month so that taking into account the fre9uency of such purchases these may be considered for inclusion in the list of stock items to avoid further piecemeal purchases.
&o ' = will be raised for pett( purchases of consumable items upto s. ,","""."" and such transactions need not be routed through concerned Materials Management. 4lso no covering suppl( order need be issued for pett( purchases of consumable items upto s. s. ,","""."".

$.0 shall also not be re9uired for purchase of materials for special events like ,eminars, %onferences, training, meetings and sports events provided the items are to be consumed during the same event and need not to be kept in stock .
Inspection o0 Non-Cons,ma=le Items 6o inspection through Nuality Assurance 2epartment for purchases of non consuma%le items upto *s/10(000/00 will %e necessary/ 4ut( regularisation of transaction in such cases will %e done against su%mission of pre receipted indent alongwith complete details of the purchased item ,i/e/ copy of %ill etc. and acceptance of material %y the indentor( to concerned +aterials +anagement ,stoc0./

The re9uirement should be applicable only in cases $.0s are created for value upto .s. -B,BBB4!, say for %apital items, for other cases as even $.0s are not created, the item shall not be inventorised at all and booked directly to expenditure head.

E/ P,rc"ase a5ainst 8an! >,otations

&urchase above .s. -B,BBB but upto .s. /6,BBB.BB may be made either by Eser 3epartment or by the &urchase 3epartment by obtaining at least three hand 9uotations. A list of prominent and reliable local firms will be maintained by all concerned. and 9uotations will be collected on rotation basis whenever there is scope for rotation. A certificate will be given by the "fficer making such purchase that hand 9uotations were obtained on rotation basis. The names and addresses of the firms from whom 9uotations are obtained will be given in the certificate. 8here the number of dealers is limited i.e. less than six, rotation system need not apply. Eser departments will not go for direct purchases over .s. /6,BBB.BB at a time barring operational emergencies involving breakdown in operations. In operational emergencies the Eser 3epartment may make direct purchases as per powers delegated in the Book of 3elegated &owers.
P,rc"ase 0rom State Empori,m . S,per :a7ar . )o2t. eptt . (n!ertakin5s

8henever items are available in ,tate *mporium 4 ,uper Ba+ar 4 ,tate $ovt. or %entral $ovt. Endertakings, purchases are to be made from them only and in those cases, the re9uirement of obtaining three hand 9uotations will not be necessary.

F/ P(RC8ASE T8RO()8 ANN(AL RATE CONTRACTS

1or items re9uired continuously throughout the year in large 9uantities, it may be advantageous to have a rate contract on lines similar to those of the 3$,H3. These contracts will not be for longer than one year and will be finalised after inviting open tenders and after negotiations in consultation with finance.
Items for which annual rate contract should be concluded will be specified and this list will be reviewed and additions made ever( (ear depending upon the past consumption or on anticipated consumption. 4nnual rate contracts will not be entered into in the case of items for which the market shows marked downward trend. In order to provide against a fall in the market price during the currenc( of the rate contract, the contract should include the standard Fall Clause as in +'S0+ ate Contracts.

G/ P(RC8ASE T8RO()8 :OAR OF OFFICERS

&urchase by a board of "fficers will be resorted to only in exceptional circumstances when the materials 5 services 4 works are either re9uired urgently to overcome an emergency or because the indentor is not able to give firmed up 4 detailed specifications ?necessitating on the spot decision based on the availability in the market< so that procurement cannot be made under the normal purchase procedure, provided further that;
Prior appro#al of the Competent Purchase Authority( not %elow 9 1 e1ecuti#e( is o%tained and furnished alongwith the Purchase Indent( %efore resorting to purchase through a %oard of officers/ Competent $anctioning Authority not %elow 9e#el 1 is empowered to constitute a 4oard of Officers comprising ++ "1ecuti#es ha#ing purchase power for #alue of 4oard Purchase and an e1ecuti#e each of e>ui#alent le#el from indenting 2epartment and ?inance/ Proceedings of such purchase %oards ,comprising of e1ecuti#es of competent le#el. will not need appro#al of any authority( since spot decisions are re>uired

If for any reason it is not possi%le to constitute a purchase %oard with competent officers( the %oard may %e constituted with an officer of the ne1t %elow ran0/ )owe#er( the reasons should %e recorded in writing and the proceedings of such a purchase %oard should %e got ratified %y the authority constituting the %oard/

The appro#al for resorting to purchase through a %oard of officers shall %e accorded after ensuring that the indentor has o%tained and rendered a non a#aila%ility certificate on $T* EA in respect of the items ,other than croc0ery( cutlery( linen and items of complimentaries. to %e purchased/

The %oard of officers shall o%tain as many >uotations as possi%le so as to determine the reasona%ility of rates/ In case the supplier,s. do not agree to gi#e the hand >uotations this fact will %e recorded %y the %oard of officers in their proceedings/

EMER)ENC< P(RC8ASE

*mergency purchase ?including hiring of services on emergency<, directly by user department without reference to &urchase 8ing, shall be resorted in the situations of emergencies ! like flood, fire, civil disturbances, war, cyclones, blow out, operational break down or likelihood of operational breakdown where it is necessary to restore normalcy of e9uipment, machinery or vehicles and the urgency does not permit following the normal methods of purchases. 3etailed 'ustification for resorting to such emergency purchases should be recorded at the time of processing the proposal for approval of competent authority.
*eporting of single tender cases on nomination %asis would %e done to the concerned 2irectorB"PCB4oard( as per pre#ailing instructions issued from time to time/

Quantity to be purchased shall be restricted to the minimum essential and the purchase shall be accounted for immediately by submitting &re!receipted indent alongwith the Inspection .eport, Invoice, 3elivery %hallan and ,upply "rder, to the Materials Management ?,tock< for raising $.0. %oncerned Indentor 4 Eser department shall ensure sufficient stock of critical spares and the materials for which repeated emergency purchases have been made, by following normal methods of purchase through MM department. T?O :I S<STEM

Two 4id system will %e compulsory for all the tender #aluing more than *s A la0hs/

Ender Two Bid ,ystem the bidders will be asked to submit :Technical: and :%ommercial: bids separately in sealed cover duly superscribed and both the offers placed in one single sealed cover, at a central place. 1or this purpose, suitable labels in different covers will be provided with the bidding documents.
The technical %ids will %e opened first and scrutinised %y Tender Committee/

After the shortlisting of techno!commercially acceptable bidders, all such bidders will be notified ?by fastest mode like fax< of the date of opening of priced bids in public, allowing a period of not exceeding 6 working days, depending upon the urgency of re9uirement and location of bidders, so as to enable such bidders to participate in tender opening, if they so like. 1or this purpose, identified fax is to be used, and the fax must be correctly programmed for Tel. number and date 4 time stamp. This is to be ensured by MM member. The priced bids will be opened by same Tender "pening "fficers who are already detailed for opening of tenders and the Tender %ommittee members. &rice bids, which remain, unopened with "#$%, are to be returned to the concerned bidders within a period of 6 working days of receipt of &erformance $uarantee Bond ?s< from the successful bidder ?s<. A clause in this regard should be inserted in the Bidding 3ocuments.

S8ORT LISTIN) OF :I E*AL(ATION CRITERIA

S"ort-listin5 o0 =i!!ers-

ERS AN

FINALISATION

OF :I

4pproval of Competent *urchase 4uthorit( will be obtained at the following stages)a. ?inalisation of 4id "#aluation Criteria/ %. Prima facie shortlisting of %idders %efore calling them for clarificatory discussions/ c. $hortlisting of %idders for price %id opening/ Finalisation o0 :i! E2al,ation Criteria 3:EC4 an! 0loatin5 o0 ten!er

The tendering process at the 4ssets # ;asins # Institutes # 3.rs should commence with the availabilit( of budget, followed b( detailed indent raised b( the indenting department giving specifications and technical ;>C along with cost estimates and the financial sanctions. The Competent *urchase 4uthorit( will decide the re.uired t(pe of tender to be issued vi: 1i2 *ublic tender 1open tender2

1ii2 9imited tender 1minimum ! parties2 and 1iii2 Single tender 1nomination, based on delegated powers in this regard2. The Competent *urchase 4uthorit( of the tender 1on recommendations of the Tender Committee2 will also approve the technical and commercial terms and conditions in the following conte/t)

i2. ii2. iii2.

Induction of latest and appropriate technolog( Competitiveness, 9essons # e/periences of the past tenders # contracts.

The Competent *urchase 4uthorit( will record the reasons for deviating, if an(, from the normal tendering procedure. Concerned +irector shall have full powers, including for the cases falling under the powers of >*C.

;>Cs should be firm # standardi:ed. ;>C revision must be done onl( b( e/ception, based on cogent and transparent 6ustification. ;>C in general should have a e6ection 1both technical and commercial2 criteria, and financial >valuation methodolog( 1including 9oading criteria2. In all cases, the ;id >valuation Criteria 1;>C2 along with the Matri/ will be brought before the Competent *urchase 4uthorit( for approval . 8herever the last ;>C approved b( >*C # C*4 is proposed to be used for the ne/t tender, there is no need to obtain repeat approval of the ;>C 1apart from changes that ma( be necessar( due to fresh guidelines issued b( *MC2.

,uch cases falling under the power of *&% will be brought to it for approval after endorsement of the concerned 3irector. %hief of ,ervices 4 who will consider the factors ?i<, ?ii< H ?iii< given above, after due examination and recommendation by the Asset Manager 4 Basin Manager 4 ead of Institutes 4 .egions ,imilarly, if there is no change in the mode of tendering earlier approved by *&%, such cases may be approved by 3irector concerned without referring to *&% again. %oncerned 3irector?s< will have full powers to approve short!listing of bidders for price bid opening for cases falling within their powers and for *&% level cases. B*% ?excluding the standard provisions<, once approved by competent purchase authority for a particular tender can be reviewed 4 modified as a se9uel to pre!bid conference. 8herever departure from B*% ?excluding the standard provisions< is considered necessary detailed reasons in tabular form are to be given ?in the proposal for approval of competent purchase

authority< indicating as to why such departure is considered necessary. It will specifically be indicated as to whether "#$% would entail any extra expenditure on account of the proposed changes in B*% and if so, analysis will also need to be given indicating the economic benefit in terms of improved efficiency or otherwise that would accrue to "#$% versus the extra expenditure involved due to modification in B*%. After this no change in B*% will be allowed. 8here no pre!bid conference has been convened, B*% in such cases will not be modified under any circumstances.

*owers to approve modification # rela/ation # departure from approved ;>C will rest with Competent *urchase 4uthorit(. In this regard, +irector concerned shall have full powers including in >*C level cases, provided, such changes are not in conflict with the e/isting polic(# procedure# *MC instructions. Before invitation of tenders, the technical as well as commercial Bid *valuation %riteria will be formulated by the tender committee. The Bid *valuation %riteria so finalised will invariably be sent alongwith bidding document to all prospective bidders.

IN*ITATION OF TEN ERS

Coor!ination an! =,lkin5 o0 !eman!s 0or p,rpose o0 in2itin5

ten!ers-

8hen dealing with indents, due attention should be paid to the combination and bulking of demands which will result in econom( in purchase. +emands for materials received simultaneousl( from different indentors should be combined as far as possible while inviting tenders. +ue regard should, however, be paid to deliver( instructions given b( the indentors. +emands which cannot be suitabl( combined with others for this or an( other reasons should be dealt with separatel(.

EN>(IR< RE)ISTER >ver( individual section dealing with purchases will maintain an en.uir( register. 4 separate page for each en.uir( will be allotted in that register.

In case of limited en.uiries, the name of the firms to whom the en.uiries will be addressed will be entered in that register. This will be signed b( the concerned officer sending the en.uir(.

TEN ER SETS TO :E SENT TO PROSPECTI*E :I

@EPT ERS

REA <

AN

TEN ER INTIMATION TO :E

4ll concerned sections dealing with open tenders before the( send tender invitation to the press for advertisement will ensure that )-

a. the tender forms are complete in all respects and are ready for sale/ A%out 20 sets are to %e 0ept ready and all are to %e serially num%ered/ %. Tender intimations are sent to prospecti#e %idders as soon information is recei#ed that the tender has %een ad#ertised/ as the

S(:MISSION OF TEN ERS FOR P(:LICATION IN PRESS

In case of open tenders( for pu%lication of 6IT in press( a period of F days should %e pro#ided from the date it is sent for ad#ertisement to the Corporate Communications/ ;arious milestones of the tender ,such as starting date of sale( closing date of sale( last date for receipt of >ueries( pre %id conference date( tender closingBopening date. should %e specified in the 6IT( after ta0ing into account the li0ely date of pu%lication of the 6IT/

TIME TO :E ALLO?E

TO TEN ERERS TO >(OTE

Some special cases which should be seen and approved b( concerned 9evel-, e/ecutive, the following period will be allowed to bidders for submitting their bids in %pen Tenders)

3escription of Tenders without Tenders with pre bid conference Activity &re!bid conference ?i< Tender sale period. //- days day s ?ii< .eceipt of 9ueries from R. D days bidders ?iii< ,crutini+ing the 9ueries and R. A days holding pre bid conference

?iv< Approval of &re!bid minutes and issue of the same ?v< ,ubmission of offers and opening of techno! commercial offers?TB"< T"TA(

R. -B days /- days

A days

2- days

>6 days

"nly in (,TS contracts, an additional time of 2B days for N&rocess &latformsM and -6 days for all other (,TS pro'ects including N8ell &latformsM and N&ipe (inesM shall be applicable for the activities between &re!bid conference to TB". The above period is to be reckoned from the date of publication of #IT in the news papers.
;idding documents should be read( for sale at tender selling centres on the date &IT appears in news papers.

,ave in special cases which should be seen and approved by concerned (evel!- executive, the following period will be allowed to bidders for submitting their bids in (imited Tenders valuing above .s 6 lakhs;!
%ases valuing %ases valuing above .s. above .s. /6 /6 (akhs without &B% 3escription of Activities (akhs with and cases valuing between &B% .s.6 lakhs and upto .s./6 (akhs ?i< .eceiving re9uests for tender en9uiries -B days -B days from vendors whose name not included in original list ?from the date of publication of tender en9uiry on the web site<. ?ii< 0erification of such re9uests by > days > days indentor and issue of tender en9uiries to eligible bidders ?including the time re9uired for receiving the same by the bidder<. ?iii< .eceipt of 9ueries from bidders for D days R. pre!bid conference ?iv< ,crutini+ing the 9ueries and holding A days R. pre bid conference ?v< Approval of &re!bid minutes and issue A days R. of the same ?vi< ,ubmission of offers and opening of /- days -B days techno!commercial offers?TB"< T"TA( 3AT, >B days /> days

1or limited tenders valuing upto .s 6 (akhs, a period of /- days shall be given to the bidders for submission of offers, from the date of issue of tender en9uiries.
*ALI IT< PERIO

The %idders will %e as0ed to 0eep their offers open as under&

i. 9imited tenders upto *s/ 2A la0hs

E0 days

ii. 6on "PC cases a%o#e *s/ 2A la0hs

H0 days

iii."PC le#el cases

120 days

?or any particular case( if longer %id #alidity period is considered necessary( than the #alidity period prescri%ed a%o#e( then the longer %id #alidity period can also %e specified in the tender with the appro#al of CPA ,2irector concerned for "PC le#el cases.( %ut due 8ustifications for such longer %id #alidity re>uired must %e gi#en while o%taining the appro#al/ )owe#er( after specifying a reasona%le time for %id #alidity period( the same must %e adhered to/

It should be specified in all tender notices under Single ;id S(stem that offers with lesser than the re.uired validit( will be straightwa( ignored. 3owever, under Two ;id S(stem no offer should be re6ected on account of shorter validit(. In Two ;id S(stem, as soon as technical evaluation is completed, reference should be made to all bidders e/cept those which are technicall( re6ected, for furnishing validit(, as re.uired at that stage.

NOTICE IN*ITIN) >(OTATIONS . TEN ERS 3NIT4

In regard to 6otice In#iting Tenders( following points are to %e 0ept in #iew&

,i.

The 6otice In#iting Tenders ,6IT. will clearly indicate the place at( date and time %y which tenders will %e recei#ed and the place( date and the time at which these will %e opened/

,ii.

The time and #enue of the pre %id conference ,if any en#isaged. also must %e clearly specified in the 6IT/

,iii.

6otice In#iting Tender should include an instruction that %ids sent %y post must %e sent under registered co#er so as to reach the place well %efore the closing time and date/

,i#.

All %ids recei#ed %y the notified closing date and time whether through the post or through the tender %o1( will %e registered under the signature of the Tender *ecei#ing Officer/

,#.

6otice In#iting Tenders may %e transmitted %y fa1 also( where#er re>uired/

,#i.

6otice In#iting Nuotations B Tenders will indicate the date and time of the commencement of the sale of the tender/

,#ii.

4idding documents depending upon #alue notified from time to time( will %e made a#aila%le for sale on specified date and time at ,1.2ehra 2un ,2.Calcutta ,5.+um%ai ,D. 6ew 2elhi ,A. Chennai/

N(M:ER OF COPIES OF OFFERS TO :E CALLE

FROM :I

ERS

Copies of %ids will %e called as under&

,i. -here in house e#aluation is in#ol#ed

Copies in triplicate

,ii. -here %id e#aluation is

?i#e Copies

done %y outside agency/

*ARIATION IN >(ANTIT< AFTER IN*ITATION OF TEN ER

Pro#isions will %e made in all tender conditions for procurement of goods that O6GC is entitled to increase or decrease the >uantities amongst any B all the items of the tender %y not more than 20L ,twenty percent./ )owe#er( in case of procurement of goods under Two %id system( any #ariations upto K 20L of the tendered >uantity would %e permissi%le only if it is decided %efore price %id opening/ 6o change in >uantity would therefore %e permissi%le in the >uantities that are proposed to %e purchased after price %ids are opened/

In case there is an increase in the 9uantity beyond /BG, it would be essential to invite fresh tenders covering the total revised 9uantity so as to get the advantage of bulk discount in prices. In case the reduction in 9uantities is more than /BG,confirmation from (!- bidder would be obtained to supply at the 9uoted rates. "n getting confirmation, order for the reduced 9uantity will be placed. If (!- bidder does not agree, then tender would be re!invited.
In case of tenders like those of pipes for offshore where large .uantit( is involved, even lower percentage ma( be specified in the tender with approval of egional +irector concerned.

SALE OF :I IN) OC(MENTS TO FIRMS ?IT8 ?8OM :(SINESS :ANNE . S(SPEN E .

8AS :EEN

The bidding documents will be sold on receipt of application?s< alongwith re9uisite tender fee. #o bidding document will however be sold to the party?ies< to whom no further business is to be given or dealings with whom have been banned 4 suspended.
TEN ER FEE

All open tenders will be issued after making necessary entries in the tender register against payment of prescribed tender fee. The tender fee will be acceptable in the form of crossed O&ayee Account onlyO Bank 3raft 4 %ashier:s %he9ue 4 Banker7s %he9ue drawn by Bank and valid for -AB days from the date of issue of the same or in the form of Indian &ostal "rders payable to the "#$%.

,ub'ect to provisions laid down, the I&"s 4 Bank 3rafts 4 %ashier7s %he9ues 4 Banker7s %he9ues will be deposited and accounted for at the station where they are received and credited in the accounts there itself. The &urchase 1ormation concerned from where bidding documents have been received for sale will, however be furnished with full details of parties to whom the bidding documents have been sold and the number of bidding documents not sold, which will be returned.
P(RC8ASE OF :I IN) OC(MENTS :< A)ENTS IN IN IA

In respect of imports, the 4gents in India, dul( authorised b( their foreign principals, will be allowed to purchase bidding documents in Indian currenc( through ;ank +raft drawn in favour of %&'C provided such foreign principal # supplier remit the cost of bidding documents in foreign currenc( e.uivalent to Indian upees through ;ank draft # Cashiers Che.ue # ;anker?s che.ue in favour of %&'C alongwith their offer before due date. The ;ank +raft in Indian Currenc( received b( tender 1selling2 agencies from authorised agents in India will be sent to the concerned F4% under intimation to *urchase 4uthorit( concerned. +emand +rafts received from Indian 4gents for the purchase of bidding documents will not be encashed immediatel(. %n receipt of re.uisite tender fee in foreign currenc( the ;ank +raft in Indian currenc( received from authorised agent in India will be returned b( concerned F4% under intimation to concerned *urchase 4uthorit(. Care should be taken b( concerned F4% to ensure that demand drafts are encashed within validit( period, if no draft, in foreign currenc( is received.

CANCELLATION OF TEN ER - REF(N

OF TEN ER FEE

In the event, a particular tender is cancelled the tender fee will be refunded to the concerned bidder.

EAEMPTION FROM PA<MENT OF TEN ER FEE The firms registered with &SIC will be e/empted from pa(ment of tender fee irrespective of the monetar( limit mentioned in their registration certificate provided the( furnish evidence that the( are registered for the items the( intend to .uote against %&'C tenders. The 'ovt. +eptts. will also be e/empted from the pa(ment of tender fee.

INTIMATION REGARDING INVITATION OF TENDER TO TRADE COMMISSIONS CONS!"ATES RE#RESENTATIVES OF FOREIGN GOVTS$

To give wide publicity, intimation regarding invitation of tenders which are invited on I%B 4 (imited International Bidding ?(IB< basis should be sent to Trade %ommissions 4 %onsulate 4

.epresentative in India of foreign $overnments. The intimation letter besides containing the brief details about the tender should also inform them that the #IT alongwith the complete bidding documents are uploaded on the "#$%7s tender website
TEN ER FEE

The following tender fees will %e charged from the %idders for sale of %idding documents for procurement of items not specific to the re>uirement of Oil Industry&

Sl. No.

Estimate! *al,e o0 ten!er

Indigenous &urchase
3in R,pees4

Import P,rc"ase

Ten!er Fee 0or !omestic =i!!ers 3Rs.4

Tender fee for foreign bidders ?E,U<

i.

?or tender e1ceeding *s/2A/00 la0hs %ut not e1ceeding *s/A0 la0hs

200/00

22A0/00

A0/00

ii.

?or tender e1ceeding *s/A0/00 la0hs %ut not e1ceeding *s/1/00 crore

A00/00

DA00/00

100/00

iii.

?or tender e1ceeding *s/ 1/00 crore %ut not e1ceeding *s/2/00 crores

A00/00

H000/00

200/00

i#.

?or tender e1ceeding *s/ 2/00 crores %ut not e1ceeding *s/A/00 crores

1000/00

22A00/00

A00/00

#.

?or tender *s/ A/00 crores

e1ceeding

1000/00

DA(000/00

1000/00

In the case of high value tenders where technical drawing # specifications run into several pages, the cost will be fi/ed b( the 3ead of Materials Management concerned keeping in view the e/penditure incurred thereon and the labour involved.

8ith a view to eliminate the offers without re9uisite tender fee, the bidding documents will be serially machine numbered and proper account of distribution thereof maintained by the purchase section concerned. The bidders will be re9uired to return the bidding documents either in original or photocopy thereof for facilitating linking after tender opening.

OFFER ?IT8O(T 8A*IN) PRESCRI:E

:I

IN)

OC(MENTS OF ON)C

The condition $%ffer sent without having the prescribed bidding document of %&'C and without compl(ing with the terms and conditions of bidding document for submitting the offer, will be ignored straightwa($ will be inserted in all tender notices.

SALE OF :I

IN)

OC(MENT

%n receipt of re.uest, bidding document will be sold against re.uisite tender fee or issued free of cost to registered parties after ensuring the re.uirement b( Tender Selling Centre. The bidding document will be issued b( Tender Selling Centre under a forwarding letter indicating therein the following details),i. Tender 6o/

,ii. 6ame of the %idder and address

,iii. 2emand 2raft B 4an0erTs che>ue B cashierTs che>ue B IPO num%er( date( #alue and paya%le at

,i#. -hether the %idder is Go#t/ 2eptt/Bregistered with 6$IC

,$ignature. 6ame of the Issuing Officer 2esignation Address of Issuing Centre The bidder must submit this forwarding letter alongwith the offer 1alongwith unpriced bid in case ofTwo ;id S(stem2. In case the ;idding +ocument has been received free of cost, bidder must also submit the forwarding letter alongwith the valid registration certificate containing the following),a. *egistration Authority

,%.

Item for which *egistered

,c.

+onetary limit upto which *egistered

,d.

;alidity of *egistration

ISS(E OF :I

IN)

OC(MENTS

The entries of the issue of bidding documents will be made in the register to be maintained b( section concerned for this purpose. %ne page should be attached for each tender advertisement. Following columns should be made in the register)-

$l/ 6o/

6ame of the firm to whom %idding document issued

Postal orderB 4an0 2raftB 4an0erTs che>ueBCashi erTs che>ue

;alue of Postal orderB4an0 draftB 4an0erTs che>ueBCa shierTs

2ate of receipt of application for %idding document

2ate of issue

$ignature

che>ue Asstt Asstt/ ++ officer +aterials +anagem ent officer

1/

2/

5/

D/

A/

E/

F/

G/

$ignature of ?irmTs representat i#e ,if %y hand.

$l/ 6o/ Allotted to each tender

6o/ Of samples recei#ed alongwith offer

$ignature of Opening Officers

Tender

$pecial *emar0s of Tender Opening Officer( if any

$ignature of ?irmTs representati# e,s. who attended tender opening

Asstt/ ++ ?AOBAsst/ OfficerB++ ?AO Officer H 10 11 12 15 1D 1A

1/

Total 6o/ of

a. %. c.

"n#elopes recei#ed for opening from Tender *ecei#ing Officer $amples recei#ed from Tender *ecei#ing Officer/ $amples recei#ed alongwith offers/

2/

Total 6o/ of&

a. %. c.

Tenders handed o#er to the Asstt/BOfficer concerned $amples handed o#er to the Asstt/BOfficer concerned 9etter of Authority of the firm,s./

1. 2.

Tender Opening Officers< $ignature $ignature of recei#ing Asstt/BOfficer

This register should be presented by the ,ection concerned at the time of opening of bid. Both the "fficers opening the tenders will sign in column -/ and -2 of the above register against the names of firms whose bids have been received.
ISS(E OF :I IN) OC(MENTS AFTER CLOSIN) ATE

4fter the closing date and time is over, no bidding documents will be issued. 3owever, if there is an unscheduled holida( on the date on which the tender sale is due to end, then the tender sale date will be e/tended b( one da( 1i.e. upto the ne/t working da(2. Thereafter, tender selling section will prepare a statement in the prescribed proforma showing the following columns) Tender 6o/ 6ame of the firm to whom %idding document issued Postal OrderB4an0 2raftB4an0erTs Che>ueBCashierT s Che>ue 6o/ and date & amount 2ate on which re>uisition for %idding document is recei#ed 2ate issue of *emar0s

One copy of the a%o#e statement is to %e sent to the Accounts $ection alongwith the Postal Orders B 4an0 2rafts B 4an0erTs Che>ue B CashierTs Che>ue for encashment/

RECEIPT OF TEN ERS

The tenders will %e recei#ed as under&

i. 2irectly %eing put in Tender 4o1 %y %idders/

ii. *ecei#ed %y ordinary B regd/ da0 %y Central 2iary $ection/

iii. )anded o#er personally to Central 2iary $ection %y %idder,s. it %eing it not possi%le for them to put in tender %o1 due to #olume of the documents/

The .eceipt and 3espatch ?%entral 3iary< ,ection will maintain separate register for the bids received by them through post office 4 handed over to them personally by tenderers due to their voluminous si+e. Tender samples which cannot be dropped in Tender Box due to their voluminous si+e will also be received by Incharge 3iary ,ection from the bidders. All Tenders and tender samples received by 3iary ,ection will be recorded in this register. The 3iary ,ection will put date and time of the receipt on each envelope of tender 4 sample and hand over the same on day to day basis to the Tender .eceiving "fficer before -5.BB hrs after obtaining his initials in acknowledgement of having received the same. In no circumstances the cover of tenders will be opened or destroyed by 3iary ,ection. All late tenders on receipt will be handed over to the ,ection concerned on day to day basis for necessary action.
TEN ER :OA

4 Tender ;o/ of the following dimension with suitable provision on its top for dropping tenders in it will be placed in Tender %pening oom # %ffice verandah.

i2 9ength ii. )eight iii. -idth

7< cms. 125 cms/ DE cms/

The Tender Box will always be kept locked and sealed. Seys of Tender Box will be under the custody of Tender .eceiving "fficer.
NOMINATION OF TEN ER RECEI*IN) . OPENIN) OFFICER3S4

An "fficer of Materials Management not below *!B level will be nominated for receipt of tenders each month. In addition, one officer not below *!B level each from Materials Management and 1inance and Accounts 3eptt. will also be nominated for opening of tenders each month. Arrangements will also be made for nominating officers not below *!B level as (eave .eserve for above purpose.

The names of the officers selected for a particular month for receipt and opening of tenders will be communicated to all concerned alongwith tender opening programme on the first day of the month, if not earlier.
ACCO(NTIN) OF TEN ERS

*ach &urchase %entre will have an almirah with 2- pigeon holes. *ach pigeon hole will be for each date. Sey of this almirah will be under the custody of Tender .eceiving "fficer. The Tender .eceiving "fficer will take out at -5.BB hrs. on each working day all tenders 4 samples from Tender Box and will put dated initials on each envelope. Thereafter, the lock of Tender Box will be sealed. All these envelopes as well as envelopes received from 3iary ,ection containing bidding documents 4 samples will be placed by him in their respective date bins of the Almirah provided for this purpose. The Tender .eceiving "fficer will maintain numerical account of the tenders 4 samples taken from Tender Box as well as of the tenders 4 samples received by him from 3iary ,ection on the following format;
Opening 4alance
Tenders $ampl es

6o/ Of tender Bsamples recei#ed

Through $ection 6o/ Of Tenders 2iary Tender 4o1 Total

Issued
Tenders $ample s

Closing %alance
Tenders $amp les

$ample s

6o/ Of Tenders

$ample s

6o/ Of tenders

$am ples

In addition, the Tender .eceiving "fficer will note down full particulars of each tender 4 sample received by him every day in a register to be maintained for this purpose. In this register, there will be one or more pages allotted for each tender notice and this will have the undermentioned columns;!
Tender 6o///////// 2ue date of Opening//////

$l/ 6o

6ame of 6o/ Of en#elopes 2t/ Of receipt the party recei#ed Tenders $amples

$ource of receipt 2iary $ection Tender 4o1

Initials

The tenders 4 samples received from different sources on different dates shall be entered in the above register. "n the due date of opening, a line will be drawn at the end indicating thereby the total number of tenders 4 samples received against the tender notice in 9uestion. In the cases where no tender 4 sample has been received on a particular date, the Tender .eceiving "fficer will record the fact of non!receipt of any tender on the due date. The late tenders 4 samples received by Tender .eceiving "fficer from Tender Box shall also be entered in the above register after the closing entry of the timely received tenders 4 samples.
The Tender %pening %fficers will put their signatures with date and time at the end of last entr( of timel( received tenders # samples in the Tender eceipt egister in token of their having taken over the tenders mentioned therein on the due date of opening. 9ate tenders # samples will be handed over b( Tender eceiving %fficer to the concerned Materials Management %fficer after obtaining acknowledgement.

OPENIN) OF TEN ERS

The tenders should only be opened on limited days to save time. *very section, while issuing en9uiry, will ensure that only the following dates of the month are given as 3ue 3ates 2,6,D, =,--,-2,-6,-D,-=, /-,/2,/6, /D,/= and 2-. If any due date happens to be ,unday or $a+etted oliday then next due date may be fixed. In case of emergency, if it is not possible to adhere to these due dates, then other dates may be given but such cases should be reduced to minimum. The ead of Materials Management of concerned Business $roup may, however, authorise opening of tenders on all working days, if situation so warrants. Tenders are to be opened at -6.BB rs. on the day they are due to be opened.
The Tenders B %ids will %e opened %y a team of two officers/

N(M:ERIN) RATES

OF

TEN ERS .

ISCLOS(RE

OF

PRICES . REA IN) O(T T8E

N,m=erin5 o0 Ten!ers

The Tender "pening "fficers will encircle the rates and terms and conditions and put their initials. If there is any cutting, overwriting or erasing that will also be stated and signed by both the officers. Total number of sheets in the bid will be mentioned on the first sheet of bid and all the sheets should be initialled by both the officers opening the bid and the bid will be given ,erial number. As for example, if D bids have been received against one particular en9uiry, then bids should be numbered as -4D, /4D and so on. The bids which are received by post after due date should be marked :(ate: tender with #o. A4D and so on. The samples received along with the tenders should also be signed by both the officers. If it is not possible to sign on the samples then those samples should be sealed with the label mentioning the name of the firm. #ame of the firm should invariably be recorded on the sample, if not given already. All envelopes are also to be retained on the record and these are to be initialled by both the officers authorised to open the tenders.
The Section concerned whose tender is due on that particular date will be present at the time of opening of the tender with the tender register. ;oth Tender %pening %fficers will sign the register against the name of the firms whose bids have been received. The summar(#remark in respect of the offers received shall be recorded b( the tender opening officers, immediatel( following the entries made for the individual offers. Thereafter, the tender opening officers should make sure that no space#pages are left blank between the last entr( of particular tender 1which has been opening b( them2 and the starting page of the ne/t tender 1appearing in the register2, b( crossing out the blank space#pages with the remark @space/page cancelled and should also initial on these pages.

Rea!in5 o,t t"e ratesIn the public opening, onl( the total prices or group-wise prices, if sought as per tender should be read out in addition to deliver( schedule and ma6or terms and conditions. %ffer should not, repeat not, be circulated amongst the biddersA representatives.

ISCLOS(RE OF PRICES

Bids are to be treated as confidential documents and save at the time of public opening of tenders, prices 9uoted are not to be disclosed to any member of the staff without permission of the $eneral Manager?MM< 4 3$M?MM< 4 ead of the &ro'ect 4 ead of Business $roup.
OPENIN) OF TEN ERS IN P(:LIC

Enless good and sufficient reasons exist ?which must be recorded on the file< all bids, including bids for service contracts, estimated to cost .s.-.BB (akh and above, must as a rule be opened in the presence of bidders 4 authori+ed representatives of bidders. . The matri1 for technical B techno commercial B commercial must %e wor0ed out ,as a part of the 4"C. in ad#ance ,of opening of technical %ids. %y the Tender Committee ,in cases e1ceeding *s 2A la0hs. and appro#ed %y the Competent Purchase authority along with 4"C/ The matri1 in which the %idders will %e re>uired to fill up the %id data will %e designed o%8ecti#ely to co#er all techno commercial points of the tender re>uired for e#aluation and will %e 0ept as a part of tender documents( for the %idders to fill up the same and su%mit alongwith offers ,to facilitate O6GC filling up of matri1 during %id opening as otherwise( the opening officers will ha#e to search the #oluminous offers to locate the rele#ant %id details for ta%ulation./ 4idders should %e as0ed to indicate their compliance %y clearly mentioning as CConfirmedP or C6ot ConfirmedP( to a#oid any misinterpretation/ ?ormat for 4id matri1 should also ha#e pro#isions for indicating the referenceBlocation of the respecti#e detail,s.Bdocument,s. enclosed in the %id( so as to easily locate the same for ta%ulation/
On opening( the data from the technical B techno commercial B commercial %ids are to %e immediately ta%ulated and signed %y the Tender Opening Officers( in presence of the interested %idders/ *especti#e dealing officersBdealing assistants shall assist the tender opening officers in ta%ulating the details in the matri1/ Immediately after tender opening( offers will %e sent for technical comments and comparati#e statement will %e prepared as per pro#isions/

Price %ids are to %e opened only for the >ualified %idders and data are to %e ta%ulated and signed %y the Tender Opening Officers immediately( in presence of the interested %idders/ *especti#e dealing officersBdealing assistants shall assist the tender opening officers in ta%ulating the details in the matri1/ It should %e clarified in the +atri1 relating to the priced %id opening that priced data reflected in the matri1 will %e as >uoted %y the %idders and su%8ect to necessary correction %ased on detailed scrutiny of the priced %ids( e#aluation for loading criteria etc/ The Comparati#e $tatement #etted %y ?inance will %e the %asis for ta0ing the decision for placement of purchase order B award of contract/

The officers opening the tenders should verify that only bidders 4 authorised representatives of bidders who have actually submitted the bids are present. Enauthorised representatives ?or representatives of firms who have not submitted the bid< should not be allowed to be present.
E-MAIL . FAA . TELEA . TELE)RAP8IC OFFERS&

T*(*V 4 1AV 4 Telegraphic "ffers will not be accepted. owever, in "*M purchases from single source or where source of supply is pre!fixed, Telex 4 1ax 4 Telegraphic 4 *!Mail offers may be considered provided such offers are followed by confirmatory copy within -6 days of the date of receipt of offer. owever, in case of purchase from "*M or their authori+ed

3ealers43istributors4 ,tockists on single tender basis, if they do not submit confirmatory copies even after persuasion then such *!mail4Telex41ax4Telegraphic offers may be considered with the approval of %&A under exceptional circumstances. 1or *&% level cases 3irector concerned shall have full power to approve consideration of such *! mail4Telex41ax4Telegraphic offers.

CANCELLATION . RE-IN*ITATION OF TEN ERS

Cancellation o0 ten!ers-

A tender shall be deemed to have been cancelled to the extent a demand is withdrawn. Advice regarding the cancellation action shall be conveyed to the indentor. %ancellation of tenders for any other reason, to be recorded in writing, shall re9uire the approval of the purchase authority one step higher than the competent purchase authority. owever, in all such cases the 3irector of concerned Business $roup with the concurrence of 3irector ?1inance< will be final authority6

Re-in2itation o0 ten!ers

In the event of re!invitation of bids whether on a limited or open tender basis the %ompetent &urchase Authority will obtain in advance the decision of the &urchase Authority one step higher. In respect of proposals falling under the purview of *xecutive &urchase %ommittee, the decision for re!tendering will be taken by concerned 3irector in consultation with %hairman!cum!Managing 3irector.
Such re-invitation of bids, on a limited basis, will be from all the bidders who .uoted against the original tender.

,imilarly, in the case of open tenders intimation regarding re!invitation of tenders will be sent to all the bidders who 9uoted against the original tender.
*easons for re in#itation of tenders in all such cases will %e recorded/

EATENSION OF TEN ER CLOSIN) . OPENIN)

ATE

$ale of %id documents should close at least 5 D wee0s %efore the date of opening of %ids and %oth the dates should %e specified in the 6ITs B 4id 2ocuments/

"1tension of date of closing B opening of %ids should %e a#oided as far as possi%le/ )owe#er( where it is in escapa%le ,#alid and 8ustified reasons for such e1tension should %e recorded in writing.( the competent purchase authority will %e empowered for e1tension of date of closing B opening of %ids( ma1imum upto two wee0s/ Officer one le#el a%o#e the competent purchase authority will appro#e any e1tension %eyond two wee0s/ )owe#er( on the %asis of TC recommendations( CPA shall ha#e powers to appro#e e1tension of date of closing B opening of %ids upto D wee0s( as a conse>uence of interactions with prospecti#e %idders during pre %id conference/ ?or "PC le#el cases( concerned 2irector will ha#e full powers to appro#e e1tension of closing B opening date of %ids/ *e>uests for e1tension of tender closing B opening date( recei#ed on the date specified for the same( shall 6OT %e considered/

6o tender document will %e sold during the e1tension period/

CLA(SES IN TEN ERS . S(PPL< OR ERS

?arranty an! ),arantee

In the case of e.uipment, the warrant( for a period of ,B months from the date of shipment or ,< months from the date of commissioning of the e.uipment, whichever is earlier, will be obtained. The warrant( period in case of turnke( pro6ects will be obtained for ,< months from the date of satisfactor( commissioning and handing over of the complete pro6ect to the %&'C.

The ;ank 'uarantee for warrant( period in the case of e.uipment will not be necessar(. The guarantee for warrant( in the case of Turnke( *ro6ect contracts will be essential, insisted upon and failure to compl( with this will be a re6ection criteria of the ;>C.

?arranty Cla,se The manufacturer warrants that ever(thing to be furnished hereunder shall be free from all defects and faults in material workmanship and manufacture and shall be of the highest grade and consistent with the established and generall( accepted standards of the material of the t(pe ordered and in full conformit( with the specifications, drawings or samples, if an(, and operable, operate properl(. This warrant( shall survive inspection of the pa(ment for and acceptance of the goods, but shall e/pire twelve months after their arrival at the destination.

Penalty . Li+,i!ate! ama5es . Cancellation Cla,se &o li.uidated damages clause will be inserted in contracts # suppl( orders for purchases upto s.,."" lakh. Suppl( order as per ST -C" will be placed for purchases upto s. ,."" lakhs which provides for cancellation clause. In case of contracts # Suppl( %rders e/ceeding s.,."" lakh, li.uidated damages will be applicable D E- of the contract # suppl( order value 1,- of total value of particular item in case of casing pipes2 per week or part thereof for dela( in supplies sub6ect to a ma/imum ceiling of !- of contract # suppl( order value 1,"- of the value of particular item in case of casing pipes2. In case of service contract for a period of more than one (ear, the li.uidated damages will be levied on one (ear?s contract period value. In the case of Construction Turnke( *ro6ect contracts, the li.uidated damages will be applicable D E- of contract value per week or part thereof for dela( in completion of the pro6ect sub6ect to a ceiling of ,"- of total contract price.

Li+,i!ate! ama5es . Fail,re an! Termination Cla,se

Proc,rement o0 5oo!s Time and date of deliver( shall be essence of the contract. If the contractor # supplier fails to deliver the stores or an( instalment thereof within the period fi/ed for such deliver( in the schedule or at an( time repudiates the contract before the e/pir( of such period, the purchaser ma(, without pre6udice to an( other right or remed(, available to him recover damages for breach of the contract)-

*eco#er from the Contractor B $upplier as agreed li>uidated damages and not %y way of penalty( a sum e>ui#alent to W L ,half percent. of contract price of the whole unit ,1L of total #alue of particular item in case of casing pipes. per wee0 for such delay or part thereof ,this is an agreed( genuine pre estimate of damages duly agreed %y the parties. which the contractor has failed to deli#er within the period fi1ed for deli#ery in the

schedule( where deli#ery thereof is accepted after e1piry of the aforesaid period/ It may %e noted that such reco#ery of li>uidated damages may %e upto A L of the contract Bsupply order price of whole unit of materials ,10L of the #alue of particular item in case of casing pipes. which the contractor B supplier has failed to deli#er within the period fi1ed for deli#ery in the scheduleJ or

a. Cancel the contract B supply order or a portion thereof %y ser#ing prior notice to the contractor B supplier/ %. It may further %e noted that clause ,a. a%o#e pro#ides for reco#ery of li>uidated damages ,and not %y way of penalty. on the cost of contract B supply order price of delayed supplies ,whole unit. at the rate of W L ,half percent. of the contract B supply order price of whole unit ,1L of total #alue of particular item in case of casing pipes. per wee0 for such delay or part thereof upto a ceiling of AL of contract B supply order price of delayed supplies ,whole unit. ,10L of the #alue of particular item in case of casing pipes./ 9i>uidated damages for delay in supplies thus accrued will %e reco#ered %y the paying authorities of the purchaser specified in the supply order( from the %ill for payment of the cost of materials su%mitted %y the contractor B supplier or his foreign principal in accordance with the terms of supply order B contract or otherwise/ c. 6otwithstanding anything stated a%o#e( e>uipment and materials will %e deemed to ha#e %een deli#ered only when all its components and parts are also deli#ered/ If certain components are not deli#ered in time( the e>uipment and material will %e considered as delayed until such time all the missing parts are also deli#ered/ Fall Cla,se 3Applica=le in case o0 Rate Contracts 0or in!i5eno,s p,rc"ases & its non-acceptance /ill =e a reBection criteria4.

i/

The price charged for the materials supplied under the contract B supply order %y the contractor B supplier shall in no e#ent e1ceed the lowest price at which the supplier B contractor or his agent B principal B dealer( as the case may %e( sells the materials or offer to sell materials of identical description to any persons B organisations including the purchaser or any 2epartment of the Central Go#t/ or any 2eptt/ of a $tate Go#t/ or any $tatutory 3nderta0ing of the Central or $tate Go#t/( as the case may %e( during the currency of the contractBsupply order/

ii.

If any time, during the said period the contractor 4 supplier or his agent 4 principal 4 dealer, as the case may be, reduces the sale price, sells or offers to sell such materials to any persons 4 organisations including the purchaser or any 3eptt. of %entral $ovt. or any 3eptt. of a ,tate $ovt. or any ,tatutory Endertaking of the %entral or ,tate $ovt. as the case may be, at a price lower than the price chargeable under the contract 4 supply order, he shall forthwith notify such reduction or sale or offer of sale to the &urchase Authority who has issued this ,upply "rder and the price payable under the ,upply "rder 4 %ontract for the materials supplied

after the date of coming into force of such reduction or sale or offer of sale shall stand correspondingly reduced. The above stipulation will however not apply to ;
a. "1ports %y the Contractor B $upplier or %. $ale of goods as original e>uipment at prices lower than the prices charged for nominal replacement/ $ale of goods such as drugs which ha#e e1piry dates/

c.

iii. The Contractor B $upplier shall furnish the following certificate to the concerned Paying Authority alongwith each %ill for payment for supplies made against this supply order B contract&

!IB-e certify that there has %een no reduction in sale price of the materials of description identical to the materials supplied to the O6GC under the contract B supply order herein and such materials ha#e not %een offered B sold %y me B us to any person B organisation including the purchaser or any 2eptt/ of Central Go#t/ or any 2eptt/ of a $tate Go#t/ or any $tatutory underta0ing of the Central or $tate Go#t/( as the case may %e upto the date of %ill B during the currency of the supply orderBcontract whiche#er is later( at a price lower than the price charged to the O6GC under the contract B supply order e1cept for >uantity of materials categories under su% clauses ,a.( ,%. ,c. of su% para ,ii. a%o#e details of which are as follows&

Inspection an! reBection o0 Materials =y Consi5nee 3s4

8hen materials are re6ected b( the consignee, the Materials Management %fficer concerned will intimate to the contractor the details of such re6ected stores, as well as the reasons for their re6ection and that the materials are l(ing in the consigneeAs premises at the risk and cost of the contractor. 3e will also call upon him either to remove the materials or to give instructions as to

their disposal within ,C da(s and in the case of dangerous, infested and perishable stores within CB hours, failing which the consignee will either return the materials to the contractor freight to pa( or otherwise dispose them of at the contractorAs risk and cost. The Materials Management %fficer will also intimate to the Finance and 4ccounts %fficer concerned the .uantit( of the materials re6ected to enable him to recover the freight due at the full public tariff rates from the contractor. The purchaser shall also be entitled to recover handling and storage charges for the period, during which the re6ected stores are not removed D !- of the value of materials for each month or part of a month till the re6ected materials are finall( disposed off.

S,=lettin5 an! Assi5nmentThe contractor shall not save with the previous consent in writing of the *urchase 4uthorit( sublet, transfer or assign the contract or an( part thereof or interest therein or benefit or advantage thereof in an( manner whatsoever provided nevertheless that an( such consent shall not relieve the contractor from an( obligation, dut( or responsibilit( under the contract.

Earlier eli2ery 8hen contracts are placed at higher rates for the sake of earlier deliver(, the clause as given below, enabling the %&'C to realise compensation for the e/tra cost due to dela( in suppl( must be included therein)-

!It should %e noted that on your assurance of earlier deli#ery( this order has %een placed on you in preference to the lowest accepta%le %id/ In case of failure to complete supplies against this contract in terms thereof within the date of the deli#ery specified herein( you would %e lia%le to pay to the O6GC the difference %etween the contract rates and those of the lowest accepta%le %id i/e/ *s////// per unit( not withstanding the fact that the delay in supply may ha#e %een caused %y force ma8eure/ This is without pre8udice to the right of the O6GC to reco#er all other losses and damages resulting from delayed supplies( including the right of cancellation!/

The following clause will in#aria%ly %e included in all in#itation for %ids&

!It should %e noted that if a contract is placed on a higher %idder as a result of this tender( in preference to the lowest accepta%le offer( in consideration of an earlier deli#ery( the contractor will %e lia%le to pay the O6GC the difference %etween the contract rate and the rate >uoted %y the lowest accepta%le %idder in

case he fails to complete the supply in terms of such contract within the date,s. of deli#ery specified in the tender and incorporated in the contract/ This is without pre8udice to other right under terms of contract!/

Pilot appro2al 3/"ere2er applica=le4 ;efore commencing bulk suppl(, (ou would forward two sets of samples supported b( two sets of (our manufacturing drawings for approval of the Inspecting %fficer. Such an approval b( Inspecting %fficer ma( need at least ,! da(s time, which should be catered for b( (ou within the deliver( schedule. Inspecting %fficer would return to (ou one set of the samples and one set of (our manufacturing drawings dul( sealed for (our guidance in bulk suppl(. Fou will make available free of charge all testing facilities in (our plant to the Inspecting %fficer to enable him to test the sample and carr( out inspection. Fou will arrange for an( test desired b( the Inspecting %fficer, at an( other test house # laborator( as approved b( the Inspecting %fficer, if facilities for such test are not available in (our plant. In the latter case, the test charges would be reimbursed b( the purchaser if the samples are considered acceptable, whereas if the samples are not found acceptable, the test charges would be borne b( (ou.

:,lk Inspection 3/"ere2er applica=le4

The bulk shall be accepted in accordance with the samples approved. The Inspector shall be given sufficient notice which shall not be less than /- working days to plan out the bulk inspection. &ercentage would be arranged by you on the same lines as in case of the pilot samples and the test charges would be dealt with accordingly. ,ampling procedure will be as per the re9uirement of the Inspection Authority. The materials re'ected by the Inspection "fficer during this inspection will be replaced by you immediately, latest within two weeks of such re'ection. Any re'ection by Inspecting "fficer shall be considered final and binding on you.
EMAIL . TELE)RAP8IC . FAA OFFERS

Tele/ # Telegraphic # Fa/ cop( of offers will not be accepted. 3owever, in %>M purchases from single source or where source of suppl( is pre-fi/ed, Tele/ # Fa/ # Telegraphic # >.Mail offers ma( be considered provided such offers are followed b( confirmator( cop( within ,! da(s of the date of receipt of offer.

Ar=itration Cla,se-

?or indigenous contracts upto *s/1/00 crore @$ole Ar%itration< clause will %e applica%le/ For indigenous contracts e/ceeding s.,."" crores and for all Foreign Contracts $Two 4rbitrators and %ne Gmpire$ clause will be applicable. ?or Pu%lic $ectors( the ar%itration clause as per Go#t/<s directi#es will apply/

S,=mission o0 ten!er samples a0ter openin5 o0 ten!ers

The belated submission of tender samples 1wherever these are re.uired2, unnecessaril( holds up decision on tenders. It will be made clear to tendering firms b( insertion of a suitable clause in bidding documents that samples, wherever re.uired, should be sent alongwith offers so as to reach before closing time of tender failing which the offer shall be ignored straight awa(.

Scale o0 Re=ate

In all invitation for bid tenders the $Instructions to ;idder$ and the conditions of contract should include the following condition)-

The minimum percentage of re%ate which would %e considered for early payment would %e as under& ,i. 4ills upto *s/ A(000 2L 1L

,ii. 4ills a%o#e *s/ A(000

Catalo5,e an! man,al in case o0 ne/ =,ys

In case of new %uys pro#isions will %e made in %idding document and supply order to the effect that supplier will send catalogue and manual of rele#ant item,s. to In#entory Control Cell under intimation to order placing authority within two months from the date of the receipt of supply order ,or as desired %y the order placing authority depending upon the deli#ery period./

)eneral Con!itions

-hen the materials are dispatched to the consignee( intimation must also %e gi#en to this effect to the purchasing authority and also to the consignee/ *eference to the supply order should in#aria%ly %e gi#en in all rele#ant correspondence/

The ;id is liable to be re6ected in case the ;idder does not compl( with the tender stipulations or the goods offered do not conform to the re.uired specifications indicated therein.

Any other terms and conditions( offered %y the firm and not included in this supply order( are not accepta%le to the O6GC/

Comparati2e Statement

After all the >uotations ha#e %een opened( these concerned for ma0ing comparati#e statement/

will %e handed o#er to the section

All the %ids recei#ed in respect of an en>uiry or ad#ertisement should %e ta%ulated in the comparati#e statement ,in the standard from ,$T* 15. prescri%ed for this purpose./ All details re>uired will %e entered in the statement/ ?or the tenders in#ited under STwo %idT system( Comparati#e $tatement should %e prepared at each stage ,i/e/ after opening of techno commercial %id and price %id. and duly #etted %y ?inance as per pro#isions/

"#ery section will ensure that the comparati#e statement is prepared within shortest possi%le time( not e1ceeding 0D days of the receipt of the >uotations after techno commercial %id opening and not e1ceeding 05 days after price %id opening/

The local 4ids which are recei#ed after the due date and hour are not to %e considered/ $imilarly( all >uotations dispatched %y the outside 4idders after the due dates are also not to %e considered/ These will not %e entered in the comparati#e $tatement/

The comparati#e statement will %e prepared and signed %y the concerned $tore Xeeper B 2ealing Asstt /B 2ealing Officer/

At the techno commercial e#aluation stage( the comparati#e statement should %e o%8ecti#ely prepared co#ering all the techno commercial points of the tender re>uired for e#aluation/ Compliances and non compliances against all the re>uirements of 4"C and the de#iations B e1ceptions ,if any. should %e clearly spelt out in the comparati#e statement/

At the price %id e#aluation stage( it should %e ensured that the rates mentioned in the comparati#e statement are in one unit so that comparison can %e made at a glance/ The final e#aluation prices for each %idder should %e wor0ed out as per e#aluation criteria and to %e ta%ulated in the Comparati#e $tatement( after ta0ing into account all the charges B statutory le#ies( which are to %e paid %y O6GC/

The comparati#e statement will %e chec0ed and signed %y the officer of +aterials +anagement as per monetary limits indicated %elow %efore the same is su%mitted with details B due recommendations to Tender Committee B Competent Purchase Authority& Monetary *al,e O00icers

3pto *s/ F/A la0hs

+aterials +anagement Officer/ In case comparati#e statement is prepared %y the +aterials +anagement Officer( the comparati#e statement should %e chec0ed at the le#el of $r/++ Officer/

A%o#e *s/ F/A la0hs to *s/5A la0hs/

$r/ +/+/ Officer

A%o#e *s/5A la0hs to *s/FA la0hs

2y/+anager,++.

A%o#e *s/FA la0hs

+anager,++.

The a%o#e chec0 will %e e1ercised %y respecti#e officers as far as possi%le/ In the e#ent an officer of the re>uired le#el is not a#aila%le( an /Officer immediately ne1t %elow le#el would e1ercise the chec0/

All comparati#e statements for tenders e1ceeding the #alue of *s/A0(000B will %e referred to ?inance for scrutiny/ The monetary limits of different le#els of ?inance and Accounts Officers for chec0ing the comparati#e statement will %e as under&

i.

3pto *s/F/A la0hs

?inance & Accounts Officer

ii.

A%o#e *s/ F/A la0hs to *s/5A la0hs

$r/ ?&A Officer

iii.

A%o#e *s/ 5A la0hs to *s/FA la0hs/

2y/+anager,?&A.

i#.

A%o#e *s/FA la0hs

+anager,?&A.

The a%o#e chec0s will %e e1ercised %y respecti#e officers as far as possi%le/ In the e#ent of an officer at the re>uired le#el is not a#aila%le( an officer immediately ne1t %elow le#el would e1ercise the chec0s/ The comparati#e statement will %e chec0ed %y the associated ?inance/ The comparati#e statement will in#aria%ly %e #etted within shortest possi%le time( not e1ceeding 0D days of its receipt in ?inance/ "ach page of the comparati#e statement will %e initialled %y %oth the +aterials +anagement Officer and the ?inance & Accounts Officer as per a%o#e +onetary limits/

The vetting of the comparative statement by 1inance will, however, not absolve the 3epartment originally preparing the comparative statement from the responsibility.

In the cases where Tender Committee is re>uired to %e held( a copy of the Comparati#e $tatement should %e made a#aila%le to the mem%ers of the Tender Committee at least DG hours %efore the first meeting of the committee alongwith a co#ering doc0et containing the following information&

i. ii. iii. i#. #.

6ame of the indenting department/ "stimated e1penditure/ -hether e1penditure sanction %y %een accorded/ the Competent Authority %een followedY If has not(

)a#e normal tendering procedure as applica%le %rief reasons thereof/ )as normal time %een allowed to the %idders for reasons therefore/

>uoting their ratesY If not(

)owe#er( for su%se>uent meetings of Tender Committee( copy of C$ and such details are not re>uired to %e sent to TC mem%ers in ad#ance/

TEC8NICAL CLARIFICATION FROM :I

ERS AFTER TEN ER OPENIN)

4s a principle, clarifications from bidders after opening of tenders are to be avoided in single bid s(stem and after price bid opening in two bid s(stem.

4t the techno-commercial bid evaluation stage 1under two bid s(stem2 also, post tender clarifications should be avoided, as far as possible. In case implied clarifications # confirmations e/ist in the bid on the issues involved, work center ma( consider processing of the bid further on the basis of such implied confirmations.

3owever, in case after opening of un-priced techno-commercial bids, if it is observed that clarifications from the bidders on important techno-commercial aspects are necessar( for enhancing competition in the tender, one opportunit( shall be given to them for submission of clarifications#confirmations#deficient documents. 8herever TC is re.uired, it will deliberate specificall( on the issues re.uiring clarifications and submit their recommendations to the C*4 for approval for asking the bidders to submit clarifications# confirmations#deficient documents. Concerned He( >/ecutive 19evel I-4#;#C#+#>#F2 will have full powers to approve seeking of clarifications#confirmations#deficient documents from the bidders even for cases falling within the powers of +irectors and >*C.

In %>M#%>C cases, bidder can be asked to withdraw the e/ceptions and deviations taken b( them to %&'C?s standard terms and conditions b( the dealing officer in MM after obtaining the approval of I#c MM directl( without holding TC.

8ith a view to widen competition in the tender, decision would need to be taken on case to case basis as to whether one more round of clarifications need to be sought from the bidders. In that case, TC will deliberate specificall( on the issues re.uiring second round of clarifications# confirmations# deficient documents and submit their recommendations to C*4 for approval for asking the bidders to submit clarifications# confirmations#deficient documents after recording proper 6ustification for the same. 3owever, concerned He( >/ecutive 19evel I4#;#C#+#>#F2 shall have full powers to approve seeking of upto two rounds of clarifications # confirmations # deficient documents, including in cases falling within the powers of +irectors and >*C.

Clarifications should be sought from bidders, b( specif(ing a reasonable cut-off time for submission of clarifications# confirmations# deficient documents. Sufficient time should be given to the bidders to submit their responses depending upon the nature of clarifications#confirmations#deficient documents which are re.uired to be submitted. 3owever, in the event of an unscheduled holida( falling in the specified da( of the Icut off timeI, the ne/t working da( shall be treated as the Icut off time?. In all other situations, if an e/tension for the Icut off time? is felt necessar( based on re.uests receive from the bidder1s2, approval should be obtained from C*4. For cases falling under the powers of +irector#>*C, approval of concerned +irector shall be obtained. Such approval for the same should be obtained before the e/pir( of the specified Icut off time? and the decision should be communicated to all the bidders from whom the clarifications#conformations#deficient documents have been sought.

Clarifications#confirmations#deficient documents which are received after the specified cut-off date should be considered onl( in e/ceptional situations depending upon merit of the case, where at least two clear T4#C4 offers are not available, with the approval of the authorit( ne/t higher to the C*4, after recording detailed 6ustification for considering such offers. For cases falling under the powers of +irector#>*C, approval of concerned +irector shall be obtained.

4n( technical clarifications#confirmations#deficient documents re.uired b( the Gser#Indenting +epartment should be routed through concerned Materials Management.

CORRESPON ENCE ?IT8 S(PPLIERS :< IN ENTORS

4efore finalisation of the tender( all correspondence with the %idders must %e done %y concerned +aterials +anagement/ )owe#er( after placing supply order B contract( if considered necessary( the indentor,s. may interact with supplier,s. B contractor,s. for any clarification pro#ided the same does not result into modification of any condition of supply order B contract and does not in#ol#e financial implications/ )owe#er( copy of such correspondence must %e mar0ed to ++ 2epartment for record/

It must %e ensured that clarifications as0ed for %y the Indentor,s. did not ha#e any %earing on the price aspect/

TEC8NICAL COMMENTS ON OFFERS

In all cases where technical e#aluation is in#ol#ed( the offers shall %e referred to the indentor and its comments put up to tender committee/

F ,$e#en. days time will %e allowed to Indentor B 3ser to furnish the Technical Comments/ It will %e ensured %y the 3ser 2eptt/ that comments are in#aria%ly furnished within specified time/ Indentor B 3ser will %e fully responsi%le for the accepta%ility of the materials recommended for purchase/ If their recommendations are at #ariance with the specifications laid down in the %idding document( they will clearly specify and indicate the difference and accepta%ility/

The Indentor<s representati#e of Tender Committee shall scrutini:e the >uotations ,already forwarded to the technical section.( in ad#ance from the technical angle %efore attending the Tender Committee meeting/

Le2el 0or tec"nical comments on o00ers

In case of purchase of general nature of items such as bulbs, tubes and stationer(, technical comments will not be necessar(. In other cases, technical scrutin( and evaluation of offers will be done and comments thereon made at the level at which the tender committee in the case is to be held.

TEN ER COMMITTEE

FORMATION OF TEN ER COMMITTEE AN

ITS MONETAR<

LIMITS

No Ten!er Committee /ill =e "el! 0or cases 2al,in5 ,pto Rs '.;; Lak"s. All proc,rement cases 3incl,!in5 0inali7ation o0 Rate Contracts4C 2al,in5 a=o2e Rs. '.;; Lak"sC /ill =e re0erre! to Ten!er Committee. 8o/e2erC TC is not re+,ire! 0or placement o0 in!i2i!,al or!ers a5ainst )S& an! ON)C rate contracts.

TC is also re+,ire! to =e "el! 0or carryin5 o,t price ne5otiations /it" =i!!ers in all casesC irrespecti2e o0 t"e 2al,e o0 t"e case.

CON*ENIN) OF TEN ER COMMITTEE

The concerned +aterials +anagement will con#ene the tender committee/

:RIEF FOR AN LE*EL OF TEN ER COMMITTEE

Con.titution o0 Tender Committee+ T/e 0ollowing level. o0 '' 7 Finance o00icer. and indenting &e8tt6 ./all 0orm 8art o0 t/e Tender Committee.+

Sl "

Acce8ting Aut/ority Level!$ or a9ove

TC Level $n!c/arge '' 5 ead Central Purc/a.e under

C/ie0 '': $n!c/arge Finance and Level $$ o0 *.er &e8artment6 $n!c/arge '' Second Level '' O00icer ;: Second Level Finance O00icer; and O00icer o0 indenting de8t o0 corre.8onding Level 4 Second O00icer Level '' '' O00icer E!< Level : Finance O00icer and O00icer o0 indenting &e8t6 o0 level corre.8onding

<

Ot/er '' Executive =E!< 7 a9ove>6

'' O00icer E!4 Level: Finance O00icer and O00icer o0 indenting de8t6 o0 level6 corre.8onding

Note;

?i<

W ,econd level officer in MM and 1inance as designated at the work center

,ii.

The le#el of TC and CPA will %e with reference to sanction #alue or tender #alue whiche#er is higher/ )owe#er( after opening the price %ids( if the e#aluated price of lowest %id B %ids is higher than the tender #alue and the tender accepting power is not within the power of original CPA( then the CPA and TC le#el will %e raised to appropriate higher le#el/

,iii.

If the re>uired le#el of TC mem%er is not postedB not in station ,on lea#eBtour. at a wor0 centre then the TC mem%er will %e of the ne1t lower le#el a#aila%le and Bor as nominated %y the Tender accepting authority/ 9e#el7I shall ha#e full powers in such cases/

,i#.

In case of turn0ey pro8ects where#er indentor is not end user and re>uirement is for use within the wor0 centre then end user will also %e a mem%er of tender committee/

,#.

?or itemsBser#ices under centralised procurement( officers posted in Technical cell attached with the respecti#e set up for centralised procurement shall carry out the Technical e#aluation and also can %e TC mem%ers as representati#es of Indenting 2eptt/ )owe#er( due to technical comple1ity of the itemBser#ice %eing procured( if In charge of the Technical cell feels necessary( he can put up the case to the respecti#e Chief of $er#icesBconcerned )ead of the 2eptt/ for Technical comments and can also co opt a representati#e of the

concerned $er#ice as a mem%er of the TC with the appro#al of the respecti#e Chief of $er#iceB)ead of the concerned 2eptt/

,#i.

?or all other itemsBser#ices also( TC will continue to ha#e only three mem%ers/ -here#er Indenting department and 3ser department,s. are different( depending on technical comple1ity of the itemBser#ice %eing procured( Indenting 2epartment can co opt for ha#ing a representati#e from 3ser department also in the TC/

,#ii.

?or O"+BO"$BPACB cases where tender #alue is upto AL B 1L of the open tender acceptance powers of 9e#el 1 e1ecuti#e as per 42P item +PD ,a.( TC shall %e held at the le#el of 2 nd le#el ++ Officer B ++ Officer " D le#el respecti#ely as stated at $l/ 6o/ 2B $l/ 6o/ 5 a%o#e/ through IBc ++/ In such cases( TC recommendations shall %e put upto CPA ,9e#el 1 e1ecuti#e. for appro#al

Tender Committees should in#aria%ly %e held when the same is scheduled/ In case any of the TC mem%ers proceeds on lea#e B tour( he may authori:e in writing the ne1t su%ordinate senior most officer a#aila%le in station to attend the TC meetings during his a%sence and to sign the TC proceedings/

The concerned dealing officer will prepare brief for perusal of all members of Tender %ommittee wherein complete details of case will be brought out. ,uch a brief, duly signed, will be given to members of Tender %ommittee well in advance of the meeting. This will, however, in no way, dilute the responsibilities of the tender committee.
E*AL(ATION OF :I S :< TEN ER TEN ER COMMITTEE PROCEE IN)S COMMITTEE AN PREPERATION OF

Tender %ommittee will examine the bids to prepare its recommendations for submission to the authority competent to accept the tender. 8here a higher bid is recommended, under exceptional circumstances ade9uate reasons in support of recommendation will be recorded.

It will %e ensured %y all TC mem%ers that Tender Committee proceedings are signed immediately on completion of the meeting( not e1ceeding 5 days from the date of the meeting/

ACCEPTANCE OF RECOMMEN ATIONS OF TEN ER

COMMITTEE

%ompetent &urchase Authority can either approve or disapprove the recommendations of T% or give written directives for reconsideration of its recommendations.
The Competent *urchase 4uthorit( will be empowered to accept unanimous # ma6orit( recommendations of Tender Committee. 8hen the unanimous # ma6orit( recommendations of the Tender Committee are not acceptable, or when the recommendations are divided e.uall( 1in case of even number of members2, the Competent *urchase 4uthorit( shall refer the case to the authorit( one step higher but with his recommendations. The authorit( ne/t higher to the C*4 with the concurrence of Finance at commensurate level, will be empowered to take decision.

C APTER !< CONCL*S$ON

ON(C is one the biggest company in India and having more than -BBBBB inventories. Though company has to purchase more than -BBBBB inventories, still its purchase procedure is flawless. %ompany is adopting very systematic purchase procedure in which there is a policy for purchase of every single item. "#$% is adopting purchase policy such that there is no disruption in production and right 9uality of material is available at right time and at right place with right rate. "#$% has adopted efficient purchase procedure so that there should not invest more amount tied up in stocking material and this will increase financial position of the company.

C APTER !? B$BL$O(RAP )

Books "perations Management for %ompetitive Advantage K By %hase, Iacobs H A9uilano

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