Terminology in E tendering:

E-tendering: It is the advanced technology involving purchase, submission and opening of tenders electronically
with the use of internet. Thus named as e-tendering. It enables the tenderers to download the tender Schedule free
of cost and then submit the bids online through specific portal on successful registration.
a)Tender Notice: It is the notice published to aware about the specific work which is called for tender. The tender
notice is called as NIT (notice inviting tender) which gives about the details of the work called for tender, showing
the value of work.i.e PAC., time of completion, , EMD amount, time and dates for sale of tenders, submission and
opening of tenders (technical bid.
b)PAC(Probable Amount of Contract): It gives the total amount taken inclusive of all taxes which is given in the
NIT for the specific work for which it is tendered out. It is given in Rupees.
Tax components in PAC calculation:
FOR NEW works, Sales component is assumed as 60% and services component is assumed as 40% of total work,
So 40% of 15% of total service tax = 40% *15% = 6%

Major/Minor/Maintenance works: For Works involving new works for construction of new building,
renovation works of existing building etc. Here, works involving both sales (i.e supply of goods) and
service(i.e use of labour to install or provide the use of supplied items), then
PAC = estimated amount of the work value (excl. additional expenses) + 8 % of estimated amount of the
work value(i.e sales tax component) + 6% of estimated amount of the work value (i.e service tax
component) + 1 % of labour welfare cess (for the estimate amount)

Supply items only :For Works involving supply of goods/items only and services are provided, then
PAC = estimated amount of the work value (excl. additional expenses) + 8 % of estimated amount of the
work value(i.e sales tax component) + 1 % of labour welfare cess (for the estimate amount)
[Note service tax component = zero, as no services are provided in such works]

Operational/Labour works: For Works involving only services are provided, then
PAC = estimated amount of the work value (excl. additional expenses) + 6% of estimated amount of the
work value (i.e service tax component) + 1 % of labour welfare cess (for the estimate amount)
[Note sales tax component = zero, as no goods/items are supplied in such works]
c) Earnest Money Deposit (EMD): Earnest money is a deposit made to a seller showing the buyer's good faith in a
transaction. Simply it is the amount that a buyer gives to the seller to show his inclination in successfully in
completing a deal. It is determined based on the PAC value. Validity of EMD amount should be minimum of 180
days from the date of deposit.
d) Tenderer/Vendors: These are suppliers, who provides goods or services to a company or individuals who take part
in the tender.
c) Completion Period: It is the duration/ time prescribed for successfully completing the work in all respects. It is
given in Months.
d) Sale Period: It is the time during which the tenders can be downloaded. It is specified clearly (in days) showing
date and time of start from which tender can be downloaded to the end date and time of downloading the tender
documents. Based on the PAC value, the sale period is determined.
f) General conditions of Contract (GCC): This involves the guidelines in various stages of tender procedures to be
followed thoroughly while purchasing and quoting the tenders.
g) Check list: It is a list to ensure the essential documents that have to be uploaded by the tenderers while quoting a
tender.
h) General notes: It describes the guidelines for the tenderers for various methods involved in measurement of civil
works like stack measurements in road works, painting works etc ,use of safety gadgets in various works, which are
to be considered by the tenderers while quoting.
i) Tender documents: It is the details of the tender of the subject work which can be downloaded from the website
within the sale period prescribed in NIT.
i)Technical Bid documents: It includes the documents which are uploaded in support of the tender showing
the detailed tender notice(NIT), General Conditions of Contract(GCC), checklist,drawings (if any), free
view showing the complete schedule of items and quantities for the specific work etc. This helps in
knowing the type and nature of work. These are uploaded in a free view mode which are open to all vendors
without purchasing tender.
First the technical bids are only opened on the date mentioned in NIT, and after evaluation of documents
submitted by the tenderers, the price bids are opened on a later date and only those tenderers who are found
technically qualified to take up the work, their price bids are only opened.
ii) Price bid documents: This include only the bid sheet which are liable for quoting the rates for the
vendors.
j)Tender processing fee: These fees are imposed by the e tendering portal for providing the tendering facilities and
has to be paid by each tenderer who are quoting for the specified work. It is calculated as a proportionate of PAC
and should be paid through online mode only.
k)Agreement: the act of mutual assent of contracting parties to the same terms and is a necessary element of a valid
contract. It defines the proof of acceptance of the deal made between the contractor and the government. Its a
negotiated and legally enforceable understanding between two or more legally competent parties. The lowest
tenderer on award of work has to submit an agreement in stamp paper for Rs.200/- within 15days from the date of
issue of work order.
l)Work order/ Fair work order: It is the formal issue of award of work to the lowest tenderer in executing the work
as specified in the tender conditions while quoting the tender and includes a complete list of items of work to be
executed as per the rates quoted by the contractor.
m)Contractor: An individual/company which is qualified to take up the work based on the evaluation procedures.
n)Performance Guarantee (PG): It is the guarantee towards performance of the work to be executed by the
contractor to make a surety against non performance of the work by the contractor. It is taken as 5% of tendered
value for all works and should be valid till a minimum period covering completion period mentioned in work order
plus 60 days.
o)Security Deposit (SD): It is the amount of work deducted as a sum of 5% to compensate towards any defects
made by the contractor on completion of work and which falls within the liability period.
p)Comparative Statement: (CST): It is a statement showing the precise and accurate idea of all the rates quoted by
the tenderers who were qualified in price bid opening stage. It is prepared based on the estimate amount put to
tender. It helps to easily compare the different rates quotes by each tenderer for the same item at a time.
q)Tender Premium (TP): It is the % above or below the estimated amount or PAC which is quoted by each tenderer
in their price bids. Its given by the formula: [(Quoted amount- estimated amount)/ Estimated amount] *100.
This value varies from (+) value to (-) value. (+) value indicates the tender premium is above and (-) indicates its
below w.r.t the estimated amount or PAC.
r)Tender Position: Based on the TP obtained for each tenderer, the position of each is identified w.r.t the PAC. The
one having the lowest quoted amount among them will be given the lowest position. And the remaining are assigned
positions in their ascending value of quoted amount. The positions are given numbers from L1 (for lowest tenderer),
L2 (for second lowest), L3..and so on.
s)Draft Estimate: It is mere a carbon copy of the estimate of work which is to be tendered showing all
specifications, quantities and rates as derived for each item of work. It is prepared to know the total cost of estimate
excluding the contingencies, labour welfare cess, service and sales tax components, i.e it reflects purely the total
cost of work with all the items specified in it. Its computed without considering the lump sum amount (if any)
included in estimate.
t)Schedule of items: Its purely the black copy of the draft estimate having the quantity and specifications as same
while no rates are given in it, which is further uploaded for e tendering as price bid schedule for the tenderers to
quote for the specific work.
u)Draft Work order: Its just a sample copy prepared before original issue of the formal work order. It includes all
documents as same as that of fair work order i.e schedule, general notes for guidelines in civil measurements,
drawings etc.
v) Technical and Financial Sanction: It is the sanction obtained for each work in both technical aspects based on
estimate and drawings and financial is obtained based on the fund allotted for the work.
w) Milestone: It is the schedule prepared based on the value of PAC specifying each category of work and time
required for its completion.

Terms defining eligibility criteria of tender:

These are the various terms of criteria specified in tender notice which have to be satisfied by the tender for
proving their eligibility to take up the work. (Attested copies of all documents should be uploaded by tenderers)

a) Work Experience: It defines the amount of work successfully executed the tenderer within 7 years from
the date of issue of tender. The value is dependent on PAC of the work. It is given in three categories and
the tenderer should satisfy any of the following three categories of experience criteria:

ONE work costing 80% value of the PAC with in the similar field of works.
(OR)

TWO works costing 60% value of the PAC

(OR)

THREE works costing 40% value of PAC

b) Annual financial turn over: It gives the turn over or cash flow accounted by the tenderer for the last three
years. Its value is determined as 30% of PAC.

c) Solvency: It reflects the the possession of assets in excess of liabilities; ability to pay one's debts. It
is taken as 40% of PAC, and should be issued as a certificate by scheduled bank
d) Ongoing works: A complete list of ongoing/ work on hand to be executed and its work order copies to be
uploaded. This gives an idea of existing/future commitments.

e) Bidding capacity: It given by formula

(AxNx2)-B
Where A= cost of highest value of work done in last seven years increased to current costing level by 7%
N= completion period of the work(in months)/12
B= Value of balance works to be completed.( value on going work to be completed)
Rules in E-tendering(MAJOR):
1.The e-tendering adopted is two cover bid system, in which the tenderer should submit the EMD in hardcopy on or
before the due date as mentioned in NIT., [Say as cover (i)]
2.Only those tenderers who have submitted EMD within stipulated time mentioned in NIT, their technical bids will
only be opened on the due date and time as given in NIT [cover (ii)].
3.Technical Evaluation: It is process of scrutinizing the documents submitted by the tenderers to find out the
technically competent tenderers at the time of opening of technical bid. This include the work experience of being
executed earlier having similar nature if work, List of ongoing works in hand, details of PAN/TAN, turn over,
solvency, bidding capacity calculation etc as uploaded by the tenderer are analysed.
4. After technical evaluation, a report is prepared and is got approved based on the slab of PAC value of work. And
for those technically competent tenderers only, the price bids are opened and after obtaining approval based on the
delegation of powers concerning to the value of work tendered.
5. TEC (Technical Evaluation Committee): This committee is constituted to evaluate the technical
documents of the tenderers and conduct site visit for works satisfying the eligibility and similar nature of
work as stipulated in NIT. This committee evaluates the site directly and based on which marks are
awarded for various traits like Safety, Quality, Time adherence and Work culture are valued. Min Marks required
to technically qualify is 75., out of Max of 100. For works costing more than Rs.20 lakhs, site visit is conducted
after constituting a committee which is to be approved by Director, LPSC for all works upto Rs.5 Crores.

6.TFC: (Tender Finalization Committee): All works costing more than Rs.5 Crore are put up to this
committee for approval and finalize the tender for acceptance and award of work to the lowest tender. For
works costing more than Rs.5 crore are to be sought approval from Director, CEPO through video mode
involving the committee members.
7. On award of work for the successfully qualified lowest tenderer, he has to submit PG within 15 days
from the date of issue of work order, failing which the work awarded to him will stand cancelled. On
submission of PG, the EMD deposited at time of purchase of tender will be released.

STEPS in TENDERING:
MAJOR-WORKS
( It defines all works that are involved for construction a new building, its Public
Health, road and other related works)

1. Preparation of E-NIT(E-Notice Inviting Tender)

i)Calculation of PAC( Probable Amount of Contract)= Estimated amount (i.e total amount
of all items excluding the contingencies and other additional expenses) + 6% Service
tax+8% Sales tax
ii) Sale period determination: Based on the PAC amount arrived, E-tendering sale period
and EMD is assigned as:

Sale period: Minimum 07 days for works costing upto Rs.20 Lakhs PAC
Sale period: Minimum 10 days for works costing more than Rs.20 Lakhs and upto
Rs.Crore of PAC
Sale period: Minimum 14 days for works costing more than Rs.2 Crores in PAC
iii) Calculation of EMD based on PAC value
EMD = 2% for all works upto Rs.10 Crores
EMD amount @ 2.% of Rs.24.12 lakhs(@2% for works costing up to Rs.10 crores
and above 10 crores, 20 lakhs plus @1% in excess of 10 crores)
EMD amount should be taken as DD/Call receipt/ Bank guarantee/ Term deposit
advice in Accounts Officer, LPSC, VMC and valid for minimum 180 days from the
date of deposit.
iii) E-NIT floated. (Upload documents such as E-NIT(detailed), checklist of documents
to be uploaded by tenderer, drawings, GCC, General civil notes, and free view of the
schedule in website). E-NITs in brief will be published in newspapers, and publish in LPSC,
ISRO websites.

2. EMD AND TECHNICAL BID OPENING:
Technical bids opened on the prescribed date as mentioned in E-NIT. Technical bids will be
opened on successful verification of EMD hard copies (i.e date of deposit, validity, amount
etc) submitted for the works on or before the due date and time as mentioned in E-NIT.
Technical evaluation of the successfully viewed bidders will be made based on various
criteria mentioned in E-NIT like:
f) Experience :- ONE work costing 80% value of the PAC with in the similar field of
works. (OR) TWO works costing 60% value of the PAC (OR) THREE works costing
40% value of PAC
g) Annual financial turn over for the last three financial year i.e 30% of PAC
h) Solvency certificate issued by scheduled bank i.e 40% of PAC
i) List of Ongoing works and its work order copies.

j) Bidding capacity = (AxNx2)-B

Where A= cost of highest value of work done in last seven years increased to
current costing level by 7%
N= completion period of the work/12
B= Value of balance works to be completed.
k) Other documents like PAN card, TDS certificate issued by works done in private
organizations uploaded by the bidder for the work is also verified.
Based on the documents uploaded by the tenderers technical evaluation sheet is
prepared to asses the minimum eligibility criteria stipulated in NIT.

3.APPROVAL FOR PRICE BID OPENING:
As part of Technical Evaluation a Report of T.E and approval for price bid opening signed
based on Site visit and evaluation report for the bidders to qualify in technical traits like
Safety, Quality, Time adherence and Work culture. Min Marks required to technically qualify
is 75.
Approval obtained for PAC upto Rs.2.5 Crore: Group Head, CMG, Rs.5Crore: Centre
Director and Above Rs.5 Crore: Director, CEPO which is put up by TFC.

4. PRICE OPENING,ACCEPTANCE AND AWARD OF WORK:
Price bid opening of the successfully qualified bidders in T.E
Comparative statement is prepared for the bidders and sent to audit.
Acceptance of the lowest offer is obtained as same followed in approval sought in T.E
report.[Note: If the tender premium of the lowest tender L1 w.r.t the estimated amount is
above 10% or not found reasonable, the Negotiation with L1 tenderer is conducted for
reducing the rates having high T.P and if negotiated reasonable, then WO issued, else
tender may be cancelled and re-tendered.]
Draft Work Order
Work order
Agreement for Rs.200/- and Performance Guarantee (5% of the tendered value of works)
in form of bank Guarantee/Term deposit within 15 days from the date of issue of work
order. On submission of P.G, the EMD submitted will be released.

Preparation of NIT

Open Technical Evaluation of successfully tenderers whose submitted EMD

in hardcopy
 Preparation of Technical Evaluation sheet

Committee formation

Site Visit

TE report based on site visit

TFC Meeting( video mode)

Preparation of minutes and approval of TE and TEC report

Approval for opening of price bids

Open price bids of only technically qualified tenderers

Preparation of CST to know the tender premium and tender position

TFC Meeting(video mode) and preparation of minutes

Acceptance of lowest tender by TFC

CST to be audited

Draft work order Preparation

Issue fair copy of Work order and release of EMD of the remaining
tenderers except lowest.

Submit PG as 5% of tendered value and agreement in stamp paper costing

Rs.200/- within 15days from the date of issue of work order.

Release of EMD submitted on successful submission of PG