SETTLEMENT DILIP GUPTA PIM/NAIR EVALUATION OF THE OFFERS ✓ The inter-se position of all offers received will be decided item wise / consignee wise unless stated otherwise in the tender schedule. ✓ Rates quoted without any condition attached (viz. Discounts having linkages to Minimum order quantity, prompt payment, prompt receipt note etc.) Will only be Considered for tender evaluation purpose.
✓ Railway however reserves the right to use the discounted rate /rates if considered workable and appropriate for counter offer to the successful tenderers. ✓ the purchaser also reserves the right to accept the offer for the full quantity or part thereof tendered. FULL QUANTITY ORDER
• THE PRINCIPAL CHIEF MATERIALS MANAGER OR ANY OTHER OFFICER
AUTHORIZED ON BEHALF OF THE PRESIDENT OF INDIA IS NOT BOUND TO ACCEPT THE LOWEST OR ANY TENDER OR TO ASSIGN ANY REASON FOR DOING SO AND RESERVES THE RIGHT TO CANCEL THE TENDER, TO REDUCE OR DIVIDE THE CONTRACT OR TO ACCEPT ANY TENDER IN RESPECT OF THE WHOLE OR ANY PORTION OF THE ITEMS SPECIFIED IN THE E-TENDER AND THE SUCCESSFUL TENDERER SHALL BE REQUIRED TO SUPPLY THE SAME AT THE RATE QUOTED. ARTICLE 14 OF THE INDIAN CONSTITUTION
• Guarantees equality before the law and equal protection of the laws within the territory of India. • It implies that every individual or entity is entitled to be treated equally under similar circumstances and prohibits arbitrary or discriminatory actions by the government. • Article 14 mandates that the government’s discretion in tender processes must not be arbitrary or unfair. Decisions must be guided by reason, transparency, and fairness. • Judicial intervention: Courts can intervene if there is evidence of arbitrariness, mala fide intention, or favoritism in tender decisions. (RAMANA DAYARAM SHETTY V. INTERNATIONAL AIRPORT AUTHORITY OF INDIA) • FOR ANY TENDER DECISION, THESE CONDITION ARE MOST IMPORTANT AND THEIR APPLICABILITY IN CASES AS PER RULE HAS TO BE ENSURED. GUIDING PRINCIPLE ➢ MAKE IN INDIA OF ➢ ELIGIBILITY CRITERIA ( RDSO/PERFORMANCE BASE/OEM ETC.) DECISION ➢ MSE CONDITION MAKING. ➢ SPLITTING IF SPLIT CRITERIA IS GIVEN. GUIDING PRINCIPLE FOR APPROVED SOURCES • Approval status of the firm ie, approved/ developmental/ unapproved to be taken on the date of tender opening. • Minimum 80% of the net procurement quantity (npq) shall be ordered on “approved vendors” • However, if there is any downgrading on the firm on the date of acceptance, then the same has to be taken in account. That is if firm has been downgraded on the date of acceptance as developmental then on 20 % order and if has been delisted then no order. • Up-gradation will not be taken in to account. That is even if on the date of tender acceptance, firm has become developmental to approved then order for 20 % only. • For developmental order, maximum qty is 20 %. due care to be taken in giving order to developmental source if npq is of less qty. APPROVAL STATUS
As on Tender opening As on date of tender Whether to consider
Date finalization as approved Approved Approved Yes Approved Not Approved No
Not Approved Approved No
Not Approved Not Approved No
OFFERS FROM UNAPPROVED FIRMS • DETAILS OF EQUIPMENT & TECHNICAL PERSONNEL, • IN CASE OF FAILURE TO FURNISH THE ABOVE THEIR OFFER BE IGNORED • ELSE VERIFY THE CAPACITY-CUM-CAPABILITY, • NEW FIRM, 20% DEVELOPMENTAL ORDER SHOULD BE GIVEN • IF DEVELOPMENTAL ORDER FAILS COVER THE QTY. ON REGULAR ORDER AGAINST OPTION CLAUSE IF PERMITTED AS TENDER CONDITION GUIDING PRINCIPLE FOR SPLITTING
• SPLITTING CRITERIA IS GOVERN BY RLY BOARD LETTER DATED 11.02.2016
WHICH HAS BEEN INCORPORATED IN PARA 18 OF GTC. • THE INTENSION OF SPLITTING HAS TO BE INCORPORATED IN TENDER CONDITION IF YOU WANT TO SPLIT. • IN CASE OF PRE DECIDED SPLITTING, IF WANT NOT TO SPLIT THEN, PROPER JUSTIFICATION HAS TO BE RECORDED IN TC OR BY TAA IN DA CASE. • FOR QUANTITY DISTRIBUTION, RATE DIFFERENCE HAS TO BE TAKEN FROM ORIGINAL OFFERED RATE AND NOT NEGOTIATED RATE. GUIDING PRINCIPLE FOR SPLITTING
CONTINUED • SPLITTING OF TENDER QTY TO BE DONE AS PER TABLE BELOW
Price differential between L1 Quantity distribution ratio
and L2 between L1 and L2 Upto 3% 60 : 40
More than 3% and upto 5% 65 : 35
More than 5% At least 65% on the L-1 tenderer.
For the quantity to be ordered on the L-2 tenderer, TC/TAA shall decide TENDER COMMITTEE • TENDER COMMITTEE SHOULD BE GENERALLY CONSTITUTED BY THE AUTHORITY COMPETENT TO ACCEPT THE TENDERS.
• THE TENDER COMMITTEE SHOULD BE SO CONSTITUTED THAT AN OFFICER
RECOMMENDING ACCEPTANCE OF A TENDER IN HIS CAPACITY AS A MEMBER OF TENDER COMMITTEE SHALL NOT BE ALSO THE ACCEPTING AUTHORITY OF THE SAME TENDER.
• IN SUCH CASES, THE OFFICER CONCERNED SHOULD PUT UP THE TC'S
PROCEEDINGS TO THE NEXT HIGHER AUTHORITY FOR ACCEPTANCE, NOT WITH UNDER STANDING THE FACT THAT THE TENDER COMMITTEE'S RECOMMENDATIONS ARE WITHIN HIS OWN POWERS OF ACCEPTANCE. • IT IS GENERAL PRACTICE THAT THE CONSTITUTION OF TENDER COMMITTEE SHOULD BE DETERMINED BY THE VALUE OF LOWEST TENDER. HOWEVER, IF THE TENDER COMMITTEE, SO CONSTITUTED RECOMMENDS TO BY PASSING THE LOWEST TENDER FOR CERTAIN REASONS, AND THE NEXT OFFER IS BEYOND ITS COMPETENCE THAN A HIGHER-LEVEL COMMITTEE SHOULD BE CONSTITUTED TO DEAL WITH THE CASE FURTHER.
• IN CASE ANY COMPLAINT/ REPRESENTATION IS RECEIVED
BEFORE DECIDING THE CASE, THIS IS TO BE DISCUSSED IN MINUTES. IN NO CASE TENDER FILE IS TO BE PUT UP TO ANY SUPERIOR OFFICER. CONSIDERATION OF TENDERS (CONTD.) NEGOTIATIONS:
• THE SELECTION OF CONTRACTORS BY NEGOTIATION IS AN
EXCEPTION RATHER THAN RULE AND MAY BE RESORTED TO: - • WHERE L-1 BIDDER IS CONSIDERED TO BE UNREASONABLY HIGH IN VALUE AND IT IS FELT THAT RE-TENDERING WOULD NOT SECURE BETTER ADVANTAGE. NEGOTIATIONS TO BE HELD ONLY WITH L-1 BIDDER.
• NEGOTIATIONS ARE GENERALLY CALLED IF RATES ARE HIGHER,
THUS IT BECOME DIFFICULT TO ACCEPT TENDER IN CASE RATES ARE NOT REDUCED. THUS, NEGOTIATIONS MUST BE VERY CAREFULLY CALLED. CONSIDERATION OF TENDERS (CONTD.) NEGOTIATIONS:
• THE ATTEMPT TO JUSTIFY SAME RATE AFTER NEGOTIATIONS BY
DIFFERENT PARAMETERS WHICH WERE NOT DISCUSSED EARLIER IN TC IS NOT ACCEPTABLE.
• GENERALLY, IF RATES ARE NOT REDUCED SUBSTANTIALLY AFTER
NEGOTIATIONS, CASE IS TO BE RETENDER.
• THUS, NEGOTIATIONS SHOULD NOT BE CALLED FOR SMALL INCREASE
IN RATES.
• TENDER IS FLOATED FOR MARKET RATES, THUS, IF COMPETITION IS
ADEQUATE RATES ARE REASONABLE.
• CONSIDERATION OF TENDERS (CONTD.)
COUNTER OFFERS • COUNTER OFFERS ARE TO BE RESORTED ONLY AFTER NEGOTIATIONS FAILS.
• COUNTER OFFER MEANS CASE IS CLOSED AND IF FIRM DOES
NOT ACCEPT COUNTER OFFER, RETENDER IS TO BE DONE.
• AFTER COUNTER OFFER IF FIRM DOES NOT ACCEPT, FRESH TC
CAN’T BE CONDUCTED. WHAT IS THE BASIS TO ASCERTAIN THE REASONABLENESS OF RATES? IS IT – • LAR? • MARKET RATES? • SCHEDULE OF RATES? • ESTIMATED RATES? REASONABILITY OF RATES
• TENDER HAS BEEN FLOATED TO ASCERTAIN MARKET RATES.
• THUS, REASONABILITY IS CERTIFIED IF • TENDER IS OPEN TENDER. • ADEQUATE COMPETITION IS THERE (MORE THAN THREE SUITABLE OFFER). • ALL THE PARAMETERS MENTIONED ABOVE. ➢ IN LIMITED, QUOTATION AND ST, REASONABILITY IS TO BE VERY CAUTIOUSLY CERTIFIED TO AVOID CARTELIZATION. BYPASSING LOWEST/HIGHEST OFFERS • DON’T TRY TO ELIMINATE THE L-1 ON THE BASIS OF POST ELIGIBILITY CRITERIA.
• APPROPRIATE (BUT NOT TOO RESTRICTIVE) ELIGIBILITY CRITERIA SHOULD
BE LAID IN ADVANCE BEFORE CALLING OF TENDER AND THE SAME SHOULD BE STRICTLY ADHERED. • NO SPLITTING IS TO BE DONE IF IT IS NOT PRE DEFINED IN TENDER.
• AS PER CVC GUIDELINES IF L-1 WITHDRAWS OFFER, CASE IS TO BE
