TENDER EVALUATION, RECEIPT AND FORMATION OF CONTRACT V P Gupta, Chief Engineer (Electrical), BSNL New Delhi E-mail : email@example.com, firstname.lastname@example.org Web Site : www.electricalzone-bsnldelhi.com (An ISO 9001:2000 Unit) tenders are called on PWD 8 i.e. on item rate 1.0 OBJECTIVE basis. (v)Drawings. The tender evaluation is a very important and (vi)Specifications. critical exercise. The objective of this exercise (vii) Special conditions of contract – is to ensure that the tenders are received in Applicable for F.D/LIFT/A.C./EA/SUB STN. proper form, they are scrutinized, evaluated, Works. These specifies the details regarding: negotiated and decided by the competent (a) IS Codes. authority in accordance with manual (b) Drawings to be submitted by the provisions, govt. instructions and delegated contractor for approval. financial power prescribed by the department (c) Co-ordination at site. from time to time. (d) Testing at factory and at site. (e) Operation. 2.0 CALL OF TENDERS (f) Rejection of defective materials. (g) Compensation for delay The following steps are necessary before (h) Guarantee and defect liability. tenders are called for. (i) Maintenance. (j) Training of DoT/BSNL personals. 2.1 DETAILED ESTIMATE: (k) Security deposit. The detailed estimate should contain the (l) Bye-laws, Indemnity against following items: liabilities (a) AA & ES (b) Technical sanction. (viii) Important note for the contractor- (c) Reference to schedule of This item is again required mainly for works rate/market rate. other than E.I. And Fans and gives details (d) Detail estimate item with Quantity,Rate regarding following items. and Amount. (a) Taxes and duties. (b) Works/Contract taxes/Sales tax 2.2 APPROVED TENDER DOCUMENTS – concession as applicable. NIT (c) OCTROI certificates/Entry Tax. This is required for all tenders for more than (d) Splitting of quantity. rupees Five Thousand. The approved NIT (e) Excise duty. should have following items. (f) Earnest Money Deposit- Option for (i) PWD 6 and press note – all items duly bank guarantee. filled up with estimate costs, EMD, time for (g) Terms of payments. completion etc. etc. (ix) Issue of Departmental material. (ii) Eligibility condition: It should be as per (a) Financial norms. (b) Physical norms 2.3 TECHNICAL/FINANCIAL BID: For major technical works, it may be * For EI & Fans the above norms are not advisable to call the tender in two stages. applicable and the eligibility condition is as The first stage involving only the technical per class of registration. bid and after scrutiny of technical bids the firms are asked to comply with the technical deviations if any and quote in the 2nd stage (iii)PWD 7/8 – All clauses duly filled up. as financial bid. (iv)Schedule of works - Indicating quantity 2.4 PUBLICITY: only, rates not to be given in the NIT if the The time limit from the date of publication of the tender notice in the news papers/website to the date of opening of the tenders is as January,2003 there shall be no requirement given below: of furnishing ITCC by any person while filing (a) For less than 10 lacs – 10 Days a tender for the purpose of obtaining (b) For 10 to 50 lacs – 15 days commercial contracts etc. (c) For more than 50 lacs 21 In view of the above govt. decision a days copy of duly acknowledged Income Tax For improving e-governance and return can be taken so as to ascertain the bringing greater transparency in financial capability/eligibility of the tenderer. administration, the CVC has decided that “if a govt. organization which goes for 4.0 OPENING/RECEIPT OF procurement, has a website and publishes the TENDER (SECTION 20): tender documents and other details in the The tenders are required to be opened by website, it will be deemed to have complied AE/EE as the case may be. In rare cases in with the requirements for giving wide the absence of EE the tenders may be publicity through the media .” opened by any other gazetted officer In view of the above developments, it authorized by the EE CPWD Manual Vol. II has been decided by the BSNL that there will prescribes the detailed precautions to be not be any Publication of Tender taken at the time of opening of tenders. The Notices/Quotation Notices/Auction Notices following are the few important points to be etc. etc. in the newspapers. The same shall kept in mind while opening the tender: be published only on the website. For e.g. in (a) Dated initial on firm corrections, Electrical zone New Delhi – on its website additions, over-writing and tender www.electricalzone-bsnldelhi.com. schedule. (b) Record whether the tenders 2.5 SALE PRICE: contained any corrections or Sale price with free copy of the agreement to overwriting on all pages of the lowest contractor is as below: schedule. (a) Upto 1 lacs Rs. 150/- (c) Numbering in red ink of all (b) 1 to 10 lacs Rs. 500/- corrections and additions. (c) Above10 lacs Rs. 1000/- (d) Rates in both figures and words *In addition to the above a sales tax as should be given. If not given by applicable will also be charged. the tenderer then the same should * Additional charge can be levied for the be recorded at the time of opening special job. by the EE/AE. Three way two agreed method should be applied 3.0 ISSUE OF TENDERS: to correct the rates. The Executive Engineer/Asstt. Engineer are (e)Tenders should be opened in the responsible ensure that the tender documents presence of contractors and AO of are ready as per the NIT and issued to all the the division should be witness of eligible applicants. The tender documents at the tender opening process. the time of issue should contain the following (f) A comparative statement with details. certificate of AO to be sent to (i) Name of firm. accepting authority for further (ii) Date of application. scrutiny. Certificate of Test Check. (iii) Date of receipt of application in (g) When there is difference of the Division office. rate in words and in figure then the (iv) Date of issue rates which correspond to the (v) Date of receipt of tender. amount worked by contractor should be taken. 3.1 Changes regarding ITCC(Income Tax (h) When amount worked out does Clearance Certificate) not tally or is not given,the rates As per the Department of Revenue, Central given in words to be taken. Board of Direct Taxes guidelines, the scheme (i) When the rates of figure and of obtaining ITCC applicable to persons words tally but the total amount leaving India and those obtaining commercial does not tally,the total amount contracts has been abolished and w.e.f. 1st should be corrected. (j) Top priority for scrutiny and 7.0 TENDER PURCHASE disposal of tender as per the time COMMITTEE FOR schedule. A/C/EA/LIFT/SUB STN. WORKS After the scrutiny of the tenders the same are 5.0 FORWARDING OF TENDERS submitted to the accepting authority for the AFTER OPENING nomination of Tender Purchase The tenders are evaluated in the o/o Committee(TPC) depending upon the value AE,EE,SE & CE as the case may be.For A/C of the tender.The TPC have been prescribed the major scrutiny is normally done in the o/o as detailed below: CE directly.However,the EE while forwarding the tenders should ensure filling up of all the Sl. Value of the Accepting TPC Member items as per the Performa prescribed for this No. Tender Authority purpose .The comparative statement 1. More than 2 Member(Prod Sr. DDG(E),CE(E) & alongwith AO’s certificate is also required to Crores uction) GM(F) of telecom be sent by the XEN. circle 6.0 TENDER SCRUTINY: 2. 1 to 2 crores Sr. DDG(E) EE(E)/SSW/SE(E)/D ir(F) of telecom While scrutinizing the circle. tenders,following points should be kept in mind: 3. 40 Lacs to 1 CE(E) SE/SSW/SW/IFA of Crore CAO level (i)Late,delay and modified tenders to be ignored. 4. 5 to 40 Lacs SE(E) SW/EA/AO (ii) Correction of total on the basis of three 5. Upto 5 Lacs EE(E) AE/SW/AO way two agreed method. (iii) No correspondence with the firms without the approval of the accepting authority. The above TPCs are not required for (iv) Technical evaluation of the tender should EI & Fans,Fire Detection,Pumps and be done as per the Performa prescribed for compound light works and as such the this purpose, listing all the deviations,whether scrutiny of the tender the same are these deviations can be accepted and submitted to the accepting authority for the financial implications in case deviation can be final decision. accepted. (v) Commercial scrutiny of the tender should 8.0 NEGOTIATIONS: be done as per the Performa prescribed for this purpose listing the deviation, whether Normally negotiations should not be these deviations can be accepted and done.However,detailed procedure for financial implications in case deviation can be negotiation and the limit prescribed are given accepted. in CPWD Manual Vol. II and extract plaed at (vi) The final status of the tender is as per Anneure- V. It should be noted that the the Performa prescribed for this purpose and negotiation,if required should be conducted the lowest tender is decided after only with the lowest evaluated tenderer.In loading/unloading. case of rate contract work where the (vii) Reasonability of rates/justification – this quantities are required to be distributed then is the most important aspect for taking also the negotiation should be conducted first decision for tender and detailed procedure is with the lowest tenderer and there after with given in the CPWD manual Volume II. other than the lowest to bring down the rates (viii) The AHR/ALR rates I.e. variation by decided by the department in respect of the more than 25% should be identified while first lowest. scrutinizing the tenders. (ix) Firms banned by the Performance review committee should be listed clearly. 9.0 DECISION 11.0 COMMON IRREGULARITIES: After scrutiny and negotiations (if required) the accepting authority has to take the final All the points listed so far are very important decision regarding acceptance or rejection of and have to be followed very carefully.there the tender the time limit for disposal of have been many cases of Audit tender as prescribed in the PWD Manual Vol. paras,Vigilance cases etc. on account of II Appendix-28 is as below. irregularities committed while evaluating tenders.The following are some of the Time Limit For Acceptance common irregularities pointed out in the past. BOAR (i) Qualified acceptance. AE EE SE CE D (ii) Un-realistic conditions. (iii) Issue of tenderer to ineligible forms. AE 7 days (iv) Publicity not as per the Manual Power provision and guidelines issued in the recent EE Power 7 days past . (v) Tender documents are silent on Higher 10 7 10 10 certain specification or the general Authority days days days days specification of the tender document do not match with the schedule of item e.g. the gauge of sheet/pipes, supports,frame,split case/centrifugal Disposal by EE after acceptance by 3 days. pumps,density of insulation, compartmentally of switches in the electrical panels etc. etc.. 10.0 FORMATION OF CONTRACT: (vi) Estimates are not properly made with reference to the market or schedule rates.. Section-15 of CPWD Manual Vol. II prescribes (vii) Tempering with tender the guide lines for the formation of contract. documents,correction,over writing etc. done Some of the important points are given as after the opening of tenders. below: (viii)The lowest tender ignored without (i) Agreement in conformity of the law. approval of the next higher authority. The contract has to be entered between (viii)Negotiations conducted with the tendere two or more persons. other than the lowest. (ii) There should be free consent of all the (ix) The NITs are not prepared as per the parties entering into the contract. guidelines of the DoT/BSNL. (iii) There should be specific offer. (iv) There should be specific acceptance. (v) All negotiation,clarification should be confirmed as a part of the contract. (vi)Acceptance of the tender should be done by the competent author (vii) All the forms should be available in the contract document i.e. CPWD-6, CPWD-7 or CPWD-8. (viii)After the acceptance of the tender an agreement should be signed by the tenderer and AE/EE as the case may be a certified copy of the same to be issued to the tenderer and the AE(if awarded by EE).