PPT on GCC for Service Contract.pdf railway

GCC for Services
Eligibility of Bidders and Evaluation of Bids.
Bid Documentation.
General Obligations.
Variation, Measurement and Payment.
Labour Laws and Related Obligations.
Determination of Contract.
Settlement of Disputes- Indian Railway Arbitration Rules.
Annexures

II. Eligibility of Bidders and Bid Evaluation.
2.1.1- Essential elements of a service contracts:
Service contracts are generally defined by –
Quality of services and timely availability of service is
essential for the satisfactory performance of a service
contract.
Scope
Governance
Operations
Financial Agreements
Performance and Implementations

2.6.1- Minimum Eligibility Criteria for
Single/two packet System in Services
Contract:
Work experience:- The bidder should have satisfactorily
completed* in the last three previous financial years and the
current financial years up to the date of opening of the
tender, one similar single service contract** for a minimum
of 35% of advertised value of the bid.
*Completed service contract includes ongoing service contract
subject to payment of bills amounting to at least 35% of the
advertised value of the bid.
** Similar service contract means any contract that is so specified by the
competent authority
3/1/2022 IRIMEE JAMALPUR 4

2.6.1- Minimum Eligibility Criteria for Single/two
packet System in Services Contract:
Financial Standing: The Bidders will be qualified
only if they have minimum financial capabilities as
below: -
• (i) T1- Financial Turnover: - The bidder should have an
aggregate financial turnover not less than 1.5 times of
advertised Bid Value during the last three previous
financial years and in the current financial year up to the
date of opening of the tender.
• (ii) T2 Liquidity: The bidder should have access to or
has available liquid assets, lines of credit and other
financial means to meet cash flow that is valued at 5% of
the estimated bid value net of applicant's commitments
for other contracts.

Eligibility Criteria for Two packet System
in Services Contract:
2.6.2- Evaluation
of Technical Bid
To scrutinize the capability, financial
strength, experience etc. of bidders.
Technical criteria & minimum qualifying
marks to be defined
2.6.3 - Evaluation of Financial Bid

Tenderer Credentials:
• A copy of an affidavit on stamp paper to the effect that all the
documents submitted by her bid are true. This shall be mandatory
in all bids. The bid shall be summarily rejected if the bidder fails to
submit this undertaking along with the bid.
• The Railway reserves the right to verify all statements, information
and documents submitted by the bidder in his tender offer, and the
bidder shall, when so required by the Railway, make available all
such information, evidence and documents as may be necessary
for such verification. Any such verification or lack of such
verification, by the Railway shall not relieve the bidder of its
obligations or liabilities hereunder nor will it affect any rights of the
Railway thereunder.

Partnership Deeds, Power of Attorney
etc.:
Documents to be Submitted Along
with Tender
Sole
Proprietor
ship Firm
HUF
Partnersh
ip Firm
/JV
Company
Registere
d Society
& Trust
LLP
(Limited
Liability
Partnersh
ip)
The power of attorney shall be submitted even if such specific person is
authorized for above purposes through partnership deed/Memorandum of
Understanding/Article of association or such other document, failing which
tender is liable to be rejected.

Disqualification of Bidders:
Employment/ Partnership etc of Retired Railway
Employee –
(a) & (b) Engineer or officer not retired from government
service at least 1 year prior to the date of submission
of the tender.
(c) a relative(s) employed in gazetted capacity in the
Engineering or any other department of the railway or
having share of more than 1% in the tendering entity.
Bids without the information above referred to or a
statement to the effect that no such retired Manager or
Guzetted officer is so associated with the Bidder

JOINT VENTURE (JV)
2.4
Participati
on of Joint
Venture
(JV) firms
in Service
Tender
bids:
2.4.1.1
Separate
identity/na
me
2.4.1.2
Number of
members
in a JV
shall not
be more
than three,
if the work
involves
only one
departmen
t
shall not
be more
than five, if
the work
involves
more than
one
Departmen
t.
Lead
Member
shall have
a
majority
(at least
51%)
share of
interest
in the JV.
The other
members shall
have a share of
not less than
20% each in
case of JV with
up to three
members and
not less than
10% each in
case of JV with
more than
three
members.

JOINT VENTURE (JV)
Tender form shall be purchased and submitted only in the
name of the JV
Memorandum of Understanding (MoU)
Credentials & Qualifying Criteria: Technical, financial eligibility
and Bid capacity of the JV
Technical Eligibility Criteria (‘a’ or ‘b’ mentioned hereunder):
(a) For Services without composite components
(b) For Services with composite components

Partnership Firms

Qualification Criteria
Disqualification of Bidders
• Single Packet System- for bid
value up to and including Rs. 50
lakh (As decided by Rly Bd from
time to time).
• Two Packet System:- Bid value
exceeding Rs. 50 lakh.
• Quality and Cost Based System
(QCBS):- used for consulting
services having bid value
exceeding Rs. 50 Lakh.
Bid Evaluation
System

Value of the Work
Earnest Money Deposit (EMD)
For works
estimated to cost
up to ₹ 1 crore
2% of the estimated cost of the work
For works estimated
to cost more than
₹ 1 crore
₹ 2 lakh plus ½% (half percent) of
the excess of the estimated cost of
work beyond ₹ 1 crore subject to a
maximum of ₹ 1 crore
III. Bid Documentation:
Earnest Money:3.3
e-Tender Forms shall be issued free of cost to all
tenderers.

Earnest Money:
Shall be rounded off to the nearest ₹10.
Any firm recognized by Department of Industrial Policy
and Promotion (DIPP) as ‘Startups’ shall be exempted
100% Govt. owned PSUs shall be exempt
Labour Cooperative Societies shall deposit only 50% of
above earnest money deposit detailed above.
Note: Vide Rly.Bd.L.No.2020/CE-I/CT/3E/GCC/Policy dt 30.12.2020- Rly.
Bd. has advised to take ‘Bid Security Declaration’ in lieu of ‘Bid
Security/ Earnest Money Deposit’ except wherever compelling
circumstances to ask for Bid Security/Earnest Money Deposit.

Care in Submission of Bids:
Clause 3.4
All conditions liable to be encountered during the
execution of the works has been taken into account.
The rates he enters in the tender forms are
adequate and all inclusive (Clause 37)
(CGST)/ (IGST)/ (UTGST)/ (SGST)
Signed by the individual legally authorized

Care in Submission of Bids:
• The tenderers shall submit a copy certificate
stating that all their statements/documents
submitted along with bid are true and factual.
• Standard format of certificate to be submitted
by the bidder is enclosed as Annexure-V.
• Non submission of certificate by the bidder
shall result in summarily rejection of his/their
bid.
• Must submit supporting documents duly self
attested by which they/he is qualifying the
Qualifying Criteria mentioned in the Tender
Document.

3.5 Execution of Contract Documents:
The Bidder whose bid is accepted required to appear in
person/representative in concerned office within 7 days
after receipt of notice. In case failure bidder may has
abandoned and earnest money/PG forfeit.
• 3.6 Forms of Contract Documents:
Atleast 03 Copies - Contractor
- Finance Department
- Contract manager
NOTE: Specimen Bid and Agreement Form are at Annexure II &
III in GCC for Services.

4.11 Performance Guarantee in service
contract:
amounting to 10 % of the contract value in four separate parts of 2.5 % each
of contract value
within 30 (Thirty) days from the date of issue of Letter of Acceptance (LOA)
PG beyond 31 (Thirty one) days and up to 90 days -a penal interest of 15% per annum
but a notice to be served after 60 days .
after 90 days from the date of issue of LOA- the contract is liable to be terminated
Validity of PG – up to the stipulated date of completion plus 60 days beyond that
variation up to 25% (either increase or decrease / No addl. PG).An additional 10% PG
in 4 equal installment on excess value of the contract to be deposited by the
contractor.
Shall be released after physical completion of work. 25 % of PG would be retained till
the warranty/maintenance.
If the penalty imposed exceed 50 % of the applicable maximum penalty, a PG
equivalent to 25 % of the applicable PG shall be forfeited. If penalty exceeds 75 %- a
PG equivalent to 50 % shall be forfeited.

The successful bidder shall submit the PG in any of the
following forms, amounting to 10% of the contract value:
• A deposit of cash.
• Irrevocable Bank Guarantee.
• Government Security including State Loan Bonds at 5%
below market value.
• Deposit Receipts, Pay Orders, Demand Drafts, and
Guarantee Bonds of SBI or any Nationalized Bank.
• A Deposit in the Post Office Savings Bank.
• A Deposit in the national Saving Certificates.
• Twelve Years National Defence Certificates
• Ten Years Defence Deposits.
• National Defence Bonds.
• UTI Certificates at 5% below market value etc.

V - Variation, Measurement and Payments:
5.1 Extension of Time in Contracts
Extension of Time in Contracts:
(i) 5.1.1 Extension due to Modification
(ii) 5.1.2 Extension for Delay not due to Railway or
Contractor: external factor
(iii) 5.1.3 Extension for Delay due to Railways
5.2 Extension of Time with Liquidated Damages (LD)
for delay due to Contractor:
• time is essence of the contract
• 0.10% of the contract value of the service for each week or part of
the week may be recovered from the contractor for further
extension .(Manager’s decision)
• LD maximum 5 %

VARIATIONS IN EXTENT OF CONTRACT
5.3 Modification to Contract to be in Writing:
5.3.1 Powers of Modification to Contract:
individual item
variation in quantity of each individual item of the contract would be up
to 25% of the quantity
Quantities operated in excess of 125% but up to 140% of the agreement quantity
Quantities operated in excess of 140% but up to 150% of the agreement
quantity
Variation in quantities of individual items beyond 150%
Minor Value Item
overall agreement value
“No Claim” certificate to be obtain by the Railway after final measurement to the
contractor to debarred from disputing and correctness of the items covered.
Details mentioned in SOP 2018 Part-A Works/Service matter, item
no. 9

5.5 MEASUREMENTS
Measurement
of Works by
Railway:
5.5.1 Quantities in Schedule
Annexed to Contract .
5.5.2 Measurement of
Services/Works- Check list or
any other methodology
provided in bid document.

5.7 - Price Variation Clause
(PVC) in service contract:
5.7.1 Applicability: where delivery periods extend beyond 18 months.
46A.2 Base Month:
Month of opening of tender
The quarter for applicability of PVC shall commence from the month following the month
of opening of bid . The Price Variation shall be based on the average Price Index of the
quarter under consideration.
5.7.5 Components on which variation in prices be admissible, shall be Material,
Labour, Fuel etc.
However, for fixed components, no price variation shall be admissible.
5.8 Price Variation during Extended Period of Contract

VI- LABOUR
54. Wages to Labour: as per provision of the Minimum Wages Act, 1948
55. Provisions of Payments of Wages Act, 1936
55-A. Provisions of Contract Labour (Regulation and Abolition) Act,
1970 and the Contract labour (Regulation and Abolition) Central
Rules 1971 as modified from time to time
55-B. Provisions of Employees Provident Fund and Miscellaneous
Provisions Act, 1952
55-C(i) website ‘www.shramikkalyan.indianrailways.gov.in’
60.(1) Non-Employment of Laborers below the age of 18.

VII-DETERMINATION OF CONTRACT
• owing to paucity of funds or from any
other cause whatever
• Notice in writing from the Railway of
such determination and the reasons
therefore shall be conclusive evidence
thereof
7.1 Right of
Railway to
Determine the
Contract:
• Railways shall admit and consider
such claims as are deemed reasonable
and are supported by vouchers to the
satisfaction of the Manager.
7.2 Payment on
Determination
of Contract:

DETERMINATION OF CONTRACT:
7.4 Determination of Contract owing to Default of
Contractor:
Performance Notice as per Performa at Annexure-XII
Seven Days Notice as per Performa at Annexure-XIV
Final termination notice as per Performa at Annexure-XV

DETERMINATION OF CONTRACT:
7.4 - Right of Railway after Rescission of
Contract owing to Default of Contractor:
No claim to
compensation
for any loss
sustained by
Contractor
PG shall be
enchased/
forfeited
The balance
work shall be
got done
independently
without risk &
cost of the
failed
Contractor.
The failed
Contractor shall
be debarred
from
participating in
the tender for
executing the
balance work.

DETERMINATION OF
CONTRACT
7.4 - In the contract rescinded in part or
parts
The full
Performance
Guarantee for
the contract
shall be
recovered.
The defaulting
Contractor
shall not be
issued any
completion
certificate for
the contract.
The balance
work shall be
got done
independently
without risk &
cost of the
failed
Contractor.
The failed
Contractor
shall be
debarred from
participating
in the tender
for executing
the balance
work.

PPT on GCC for Service Contract.pdf railway

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