1. Open Session for Railway
Departmental
Examinations
Basic Concepts of
Works/Services Tenders
and Contracts including
GCCs
2. Requisites & Process for tenders/execution of
a work/Service on IR
⚫ Execution of works -Abstract Estimate/
Detailed estimate/Vetting/Technical sanction
⚫ Execution of Services-Administrative
approval/Concurrence to the proposal and cost/
Sanction to the Proposal
⚫ Ensuring adequate Funds Availability
⚫ Selection of mode for fixing the agency and fixing
the notice period, requisite EMD/Bid security,
PG and SD, wherever rquired.
⚫ Preparation of Tender Schedule, which includes
relevant GCC, special conditions if any/Additional
Terms and conditions (ATC).
⚫ Preparation of Schedule of items & rates for
works or services as per the DE and sanction,
specifications etc
3. Requisites & Process for tenders/execution of
a work/Service on IR (contd)
⚫ Preparation and Publicity of NIT (Uploading on website & publication in News
papers)
⚫ Tender opening-No possibility of late or delayed
tenders in E-tendering
⚫ Briefing note, Direct Acceptance up to Rs 50 L
⚫ Beyond Rs 50 Lakhs, Tender Committee depending on
the valid L1.
⚫ Tender Acceptance by TAA by competent authority and issue of
Letter of Acceptance.
⚫ Submission of required performance Guarantee,
Signing of Agreement and then Execution,
⚫ Measurements of works/services done through MBs or
eMBs
⚫ Processing of Bills for Payments as per Contract conditions
which includes GCC and Special Conditions.
⚫ Liquidated damages, penalties
⚫ Processing of Extension of currency and variations in the
contract, if any.
⚫ Subsidiary/Rider Agreement and Final agreement
⚫ Settlement of Final bill
⚫ Release of Performance Guarantee
4. Types of
Tenders
❖ Open Tenders through IREPS and
paper advertisement.
❖ Limited Tenders from Approved List.
❖ Special Limited Tenders from prequalified
/selected bidders for specialized works.
❖ Single Tenders on nomination basis for
urgent works and AMC from OEMs
❖ Open Tenders under Two Packet System for
works costing more than Rs 10 Cr and
services costing more than Rs 50 Lakhs
❖ Dispensation of Calling of tenders-Award of
works on quotation basis for urgent works
costing up to Rs 10 Lakhs
5. General Types of Open Tenders/Bids on IR
Single/Two Stage Bidding System
□ Single Stage Single Bid/ Single
Envelope (Packet)System for Open
Tenders
□ Single Stage Two Envelope (Packet)
Systems for open tenders
□ Two Stage Bidding with
Expression of Interest (EOI) for
open tenders.
□ Pre-qualification Bidding (PQB) for
limited and special limited tenders
6. Open tenders-Works
Open tenders: tenders which are invited in most open
and transparent manner to achieve most economical
rates.
⚫Requirements
News Papers
⚫NIT to be uploaded on IREPS and to be published in the
⚫Minimum 30 days’ notice should be given for all major
value tenders. Tenders up to 1 Cr the notice Period can be
reduced to 21 days without finance concurrence and
21/14 days with Fin concurrence for tenders up to Rs 2 Cr.
⚫The date of uploading the NIT on the IREPS is the criteria.
Any corrigendum should normally have 15 days’ notice
⚫Advantages: Economical Rates, Competition,
Transparency, Opportunity to new agencies
⚫Limitations: Time consuming, Advertisement
cost, Possibility of inexperienced agency spoiling the
time and work
7. Invitation of tenders---Tender notice period
□ Normally, notice of minimum 30 days for large value
works of more than Rs 2 Cr from the date of uploading
of NIT on IREPS website
□ For works up to Rs 1 crore through e-tendering, notice
period can be reduced to 21 days without Finance
Concurrence by CWM/DRM/SAG/CAO.
□ And up to 21/14 days with Finance Concurrence
by TAA up to the value of Rs 2 Cr
□ Tenders need to be uploaded on IREPS and published in
the news papers, date of publication the NIT on the
IREPS is the criteria for reckoning the period.
□ If there is a shortage in the notice period corrigendum
can be issued for extension
□ Any corrigendum to the tender already published, a time
gap of minimum 15 days should be given before the
tender is opened. A mention can be made in the NIT for
transparency
8. Tenders to be invited through GeM
The e-Bidding / RA invitation / Notice shall be published on GEM, stipulating
the last date for bid submission / opening of bids giving at least clear 10
days time after the publication.
Railways GCC for services and other conditions will be Additional
Terms & Conditions (ATC) to the GeM’s General Conditions of
Contract
The bid submitted under:
1.e-Bidding shall remain valid for 15 days (or as stipulated by the
Buyer in the bid document) from the Bid Opening Date.
2.RA in Bid to RA case, where the bid offer validity is less than 30 days,
will be extended to 30 days including the RA initiation date.
9. Limited tenders Works
⚫ Limited tenders: tenders to be invited only from the
experienced and approved contractors borne on approved list
⚫ Requirement
⚫ Approved list with currency live
⚫ The list should not be less than 10
⚫ Minimum 14 days’ notice
⚫ No need of advertisement or uploading on IREPS
⚫ Tenders to be invited from all the agencies on the specific
category of approved list
⚫
⚫ Advantages
⚫ Quality of bidders thus expected good work
⚫ No advertisement cost
⚫ Minimum time requirement as notice is less and no further
shortlisting of agencies
⚫ Limitations
⚫ Rate will be more than OTs
⚫ Possibility of ring formation
10. Special Limited tenders-Works
⚫ Special Limited tenders: tenders to be invited only for very
specialized of works requiring high technical expertise and
only a handful of agencies in the market can execute the
work efficiently.
⚫ Requirement
⚫ Approved list not required
⚫ The number of agencies identified shall not be less than 4
preferably 6
⚫ Minimum 14 days’ notice
⚫ No need of advertisement or uploading on IREPS
⚫ Advantages
⚫ Quality of bidders thus expected good work
⚫ No ad cost
⚫ Minimum time requirement as notice is less and no further
shortlisting of agencies
⚫ Limitations
⚫ Rate will be more than OTs
11. Single tenders- Works and services
Single tenders
⚫ Single tenders can generally be resorted to for emergency
works required for restoration of Traffic damaged due
to floods, earthquakes and other natural calamities. It is
also resorted to for restoration of communication.
⚫ Single tenders can also be invited for AMCs from OEMs
⚫ GM can invite STs for Specialized nature of works and any
other situation
⚫ Advantages
⚫ Quick execution of work
⚫ Limitation
⚫ Rates will be too high
⚫ No transparency
12. Types of Contracts on IR system
⚫ Works Contracts
⚫ Services Contracts
⚫ House Keeping, cleaning, Out sourcing
of various man power/non core
activities, Consultancy, Hiring of
Transport etc
⚫ Stores Contracts- Purchase orders
⚫ Earnings Contracts
⚫ Siding Agts
⚫ Parking contracts
⚫ Advt contracts
⚫ Licensing of land/plots Agts
⚫ Other earning contracts
13. GCCs On Indian Railways
⚫GCC for Works 2014
(Last updated-pre
revised) -- Nov
2018
⚫GCC for
Works
(Revised)
Prese
ntly
appli
cable
⚫GCC for
⚫GCC for Works -- April
2022
⚫ (Latest Revision)
15. Order of Precedence of Documents
1.
2.
3.
4.
5.
6.
7.
8.
9.
: In a tender/contract, in case of any
difference, contradiction, discrepancy,
with regard to Conditions of
tender/contract, Specifications, Drawings, Bill of quantities etc.,
forming part of the tender/contract, the following shall be the
order of precedence:
Letter of Award/Acceptance(LOA)
Bill(s) of Quantities
Special Conditions of Contract.
Technical Specifications as given in
tender documentsDrawings
Indian Railways Standard General Conditions of Contract updated with
correction slips issued up to date of inviting tender or as otherwise
specified in the tender documents.
Indian Railways Unified Standard Specification (IRUSS-2019) updated
with correction slips issued up to date of inviting tender or as otherwise
specified in the tender documents, if applicable in the contract.
CPWD Specifications 2019 Vol I & II updated with correction slips issued
up to date of
inviting tender or as otherwise specified in the tender documents, if
applicable in the contract
Indian Railways Unified Standard Specifications (Works and Material) 2010
updated with correction slips issued up to date of inviting tender or as
otherwise specified in the tender documents, if applicable in the contract.
IR Specifications/Guidelines updated with correction slips issued up to date
16. Bid Security instead of EMD:
The tenderer shall be required to submit the Bid Security with the tender for
the due performance with the stipulation to keep the offer open till such date as
specified in the tender, under the conditions of tender. The Bid Security shall be as
under
□ The Bid Security shall be rounded off to the nearest 100.
₹
□ This Bid Security shall be applicable for all modes of tendering
□ Any firm recognized by Department of Industrial Policy and Promotion
(DIPP) as ‘Startups’ shall be exempted from payment of Bid Security
detailed above.
□ Labour Cooperative Societies shall submit only 50% of above Bid Security
detailed above
Value of the work Bid Security
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
17. Bid Security instead of EMD:
□ The Bid Security shall be deposited either in cash through
e-payment gateway or submitted as Bank Guarantee
bond from a scheduled commercial bank of India
or as mentioned in tender documents The Bank
Guarantee bond shall be as per Annexure-VIA and
shall be valid for a period of 90 days beyond the
bid validity period.
□ In case, submission of Bid Security in the form of Bank
Guarantee, following shall be ensured:
□ A scanned copy of the Bank Guarantee shall be uploaded
on e-Procurement Portal (IREPS) while applying to the
tender.
□ The original Bank Guarantee should be delivered in
person to the official nominated as indicated in the
tender document before closing date for submission of
bids(i.e excluding the last date of submission of bids
18. Other important Provisions in new GCC
□ Pre Bid Conference: In tenders having advertised value more
than Rs 50 Crore or as mentioned in the tender document,
Railway shall conduct Pre Bid Conference(s) with the
prospective bidders.
□ Make in India Policy: Provisions of Make in India Policy 2017
issued by Govt. of India, as amended from time to time, shall
be followed for consideration of tenders.
□ Permission to Bid for a bidder from a country which shares
Land boundary with India: Any bidder from the countries
sharing a land border with India will be eligible to bid in any
procurement of works (including turnkey projects) only if the
bidder is registered with the Competent Authority.
□ The Competent Authority for registration will be the
Registration Committee constituted by the Department for
Promotion of Industry and Internal Trade (DPIIT), GOI.
19. Technical Eligibility Criteria as
per latest GCC for works
⚫ (a) The tenderer must have successfully
completed any of the following during last 07
(seven) years, ending last day of month
previous to the one in which tender is invited:
⚫ Three similar works costing not less than the
amount equal to 30% of advertised value of
the tender, or
⚫ Two similar works costing not less than the
amount equal to 40% of advertised value
of the tender, or
⚫ One similar work costing not less than the
amount equal to 60 % of advertised value of
the tender.
20. Technical Eligibility
Criteria for composite
works:
In case of composite works (e.g. works involving more
than one distinct component, such as Civil
Engineering works, S&T works, Electrical works, OHE
works etc. and in the case of major bridges
– substructure, superstructure
etc.), tenderer must have successfully
completed any of the following during
last 07 (seven) years, ending last day of month
previous to the one in which tender is invited:
⚫ Three similar works costing not less than the amount
equal to 30% of advertised value of each component of
tender, or
⚫ Two similar works costing not less than the amount
equal to 40% of advertised value of each component of
tender, or
⚫ One similar work costing not less than the amount
equal to 60% of advertised value of each component of
tender.
21. Financial Eligibility Criteria
□ The Tenderer must have minimum average annual contractual
turnover equal to =V/N or V Crores, which ever is less;
□ where V= Advertised value of the tender in Crs of Rupees
□ N= Number of years prescribed for completion of work for which bids
have been invited.
□ The average annual contractual turnover shall be calculated as an
average of “total contractual payments” in the previous three financial
years, as per the audited balance sheet.
□ However, in case balance sheet of the previous year is yet to be
prepared/ audited, the audited balance sheet of the fourth previous
year shall be considered for calculating average annual contractual
turnover.
□ The tenderers shall submit requisite information as per
Annexure-VIB, along with copies of Audited Balance Sheets duly
certified by the Chartered Accountant/ Certificate from Chartered
Accountant duly supported by Audited Balance Sheet
22. Permission for Sub Contracting
□ In case after award of contract or during execution of
work it becomes necessary for contractor to change
subcontractor, the same shall be done with
subcontractor(s) fulfilling the requirements as per
clause 7 of the Standard General Conditions of
Contract, with prior approval of Chief Engineer in
writing.
□ The subcontractor shall have successfully completed
at least one work similar to work proposed for
subcontract, costing not less than 35% value of work
to be subletted, in last 5 years, ending last day of
month previous to the one in which tender is invited
through a works contract.
□ For subletting of work costing up to Rs 50 lakh, no
previous work experience of subcontractor shall be
asked for by the Railway.
23. Clarification of Bids
□ To assist in the examination, evaluation &
comparison and pre-qualification of the
Tender, the Railway may, at its discretion, ask
a Bidder for a clarification of its Bid .
□ Any clarification submitted by a Bidder that
is not in response to a request by the Railway
shall not be entertained or considered.
□ The Railway’s request for clarification and
the response of the bidder in this regard
shall be in writing.
24. GS
T
⚫ (a)(i) Tenderers will examine the various provisions of The
Central Goods and Services Tax Act, 2017(CGST)/ Integrated
Goods and Services Tax Act, 2017(IGST)/ Union Territory
Goods and Services Tax Act, 2017(UTGST)/ respective state’s
State Goods and Services Tax Act (SGST) also, as notified by
Central/State Govt. & as amended from time to time and
applicable taxes before bidding. Tenderers will ensure that
full benefit of Input Tax Credit (ITC) likely to be availed by
them is duly considered while quoting rates.
⚫ (a)(ii) The successful tenderer who is liable to be
registered under CGST/IGST/UTGST/SGST Act shall submit
GSTIN along with other details required under
CGST/IGST/UTGST/SGST Act to railway immediately after
the award of contract, without which no payment shall be
released to the Contractor. The Contractor shall be
responsible for deposition of applicable GST to the
concerned authority.
⚫ (a)(iii) In case the successful tenderer is not liable to
be registered under CGST/IGST/UTGST/ SGST Act, the
railway shall deduct the applicable GST from his/their bills
under reverse charge mechanism (RCM) and deposit the
same to the concerned authority.
25. Notarised Affidavit for
credentials
⚫ The tenderers shall submit a copy of
notarized affidavit on a non-judicial stamp
paper stating that all their
statements/documents submitted along with
bid are true and factual. Standard format
of the affidavit to be submitted by the
bidder is appended as Annexure-V in GCC.
⚫ Non submission of notarized affidavit by
the bidder shall result in summarily
rejection of his/their bid. It shall be
mandatorily incumbent upon the tenderer to
identify, state and submit the supporting
documents duly self attested by which
they/he is qualifying the Qualifying
27. Tender validity
period
⚫ The Tenderer (s) shall keep the offer open for a
minimum period of 60 days (in case of two packet
system of tendering 90 days) from the date of
opening of the Tender.
⚫ It is understood that the tender documents have
been issued to the Tenderer(s) and the Tenderer(s),
is / are permitted to tender in consideration of the
stipulation on his / their part that after submitting
his / their tender subject to the period being extended
further, if required by mutual agreement from time
to time, he will not resile from his offer or modify the
terms and conditions thereof in a manner not
acceptable to the Chief Engineer/Dy. Chief
Engineer/Divisional Engineer of
Railway,
⚫ Should the tenderer fail to observe or comply with
the foregoing stipulation, the amount deposited as
Earnest Money for the due performance of the
above stipulation, shall be forfeited to the Railway.
28. Performance
Guarantee
⚫ The successful bidder shall have to submit a
Performance Guarantee (PG) of 5% of the contract value,
within 21 (Twenty one) days from the dateof issue
of Letter of Acceptance (LOA). Extension of time
for submission of PG beyond 21 (Twenty one) days and up to
60 days from the date of issue of LOA may be given by the
Authority who is competent to sign the
contract agreement. However, a penal interest of 12% per
annum shall be charged for the delay beyond 21(Twenty
one) days, i.e. from 22nd
day after the date of issue of LOA.
Further, if the 60th
day happens to be a declared holiday in
the concerned office of the Railway, submission of PG can be
accepted on the next working day.
⚫ In all other cases, if the Contractor fails to submit the
requisite PG even after 60 days from the date of issue of LOA,
the contract is liable to be terminated. In case contract is
terminated railway shall be entitled to forfeit Earnest
Money Deposit and other dues payable against that
contract. In case a tendererhas not submitted
Earnest Money Deposit on the strength of
their registration as a Startup recognized by Department of
Industrial Policy and Promotion (DIPP) under Ministry of
Commerce and Industry, DIPP shall be informed to this
effect.
29. Security Deposit
⚫ (A)The Security Deposit shall be 5% of the
contract value and may be recovered at the
rate of 6% of the bill amount till the full
Security Deposit is recovered.
⚫ (B)In case of defaulting Contractor, the Railway
may retain any amount due for payment
to the Contractor on the pending "on
account bills" so that the amounts so retained
(including amount of SD & guaranteed
through Performance Guarantee) may not
exceed 10% of the total value of the contract.
30. Price Variation Cluse (PVC)
□ Price Variation Clause (PVC) shall be applicable only in
tender having advertised value above Rs. 2 Crores HAVING
COMPLETION PERIOD ABOVE 12 MONTHS. Provided further that, in
a contract where PVC is applicable, following shall be
outside the purview of price adjustments (i.e. shall be
excluded from the gross value of the work for the purpose of
price variation)
□ Materials supplied by Railway to the Contractors, either free or at fixed
rate;
□ Any extra item(s) included in subsequent variation falling outside the
purview of the Bill(s) of Quantities of tender, under clause 39. (1)(b) of these
Standard General Conditions, unless applicability of PVC and ‘Base
Month’ has been specially agreed, while fixing the rates of such extra
item(s).
□ The Base Month for ‘Price Variation Clause’ shall be taken as the one
month prior to closing of tender, unless otherwise stated elsewhere. The
quarter for applicability of PVC shall commence from the month following
the Base month. The Price Variation shall be based on the average Price
Index of the quarter under consideration.
31. www.shramikkalyan.indianrailways.gov.in
□ Contractor is to abide by the provisions of various labour laws in terms of above
clause 54,55, 55-A and 55-B of the Standard General Conditions of Contract.
□ In order to ensure the same, an application has been developed and hosted on website
‘www.shramikkalyan.indianrailways.gov.in’. Contractor shall register
his firm/company etc. and upload requisite details of labour and their
payment in this portal.
□ These details shall be available in public domain. (a) Contractor shall apply for
onetime registration of his company/firm etc. in the Shramikkalyan portal
with requisite details subsequent to issue of Letter of Acceptance.
□ Engineer shall approve the contractor’s registration in the portal within 7 days of
receipt of such request.Contractor once approved by any Engineer, can
create password with login ID (PAN No.) subsequent use of portal for all
Letter of Acceptances (LoAs) issued in his favour.
□ The contractor once registered on the portal, shall provide details of his Letter of
Acceptances (LoAs) / Contract Agreements on shramikkalyan portal within 15
days of issueof any LoA for approval of concerned Engineer. Engineer shall
update (if required) and approve the details of LoA filled by contractor
within 7 days of receipt of such request.
□ After approval of LoA by Engineer, contractor shall fill the salient details of contract
labours engaged in the contract and ensure updating of each wage payment to them
on shramikkalyan portal on monthly basis.
32. Electronic reverse auction in E-tender
⚫ Applicable for Stores tenders costing more
than Rs 5 Cr and Works & Services
tenders valuing more than Rs 50 Crs,
under two packet in Two Packet System of
tendering.
⚫ Not applicable, if the short listed bidders
are lesser than 3.
⚫ The lowest/highest offer will be criteria for
the reverse auctioning among short listed
bidders.
⚫ A particular time is given for reverse
auctioning among the bidders.
⚫ Whoever quotes lower/higher will get the
offer.
33. Bid Capacity for tenders costing more than Rs 20 Cr
⚫ Available Bid Capacity formula = (AxNx2) minus 0.33 x
N x B
⚫ Where, A = Maximum value of construction
works executed and payment received in any
one of the previous three financial years or the
current financial year (up to date of inviting
tender), taking into account the completed as well
as works in progress.
⚫ N= Number of years prescribed for completion of
work for which bids has been invited.
⚫ B = Value of existing commitments and balance
amount of ongoing works with the tenderer to be
completed in next ‘N’ years.
⚫ the tenderer will be qualified only if its available
bid capacity is equal to or more than the total bid
value of the present tender.
34. Need for Separate GCC for Services
⚫ Rise in Number of service contracts in
non operational areas such as out sourcing
of labor, House keeping, cleaning, facility
management and consultancy.
⚫ Need to sort out problems specific to delivery
of services which can’t be fully complied
through GCC for works.
⚫ Need to have a simplified, improved
contract management and delivery of services.
⚫ Reduce government litigations for non
compliance of various Labor Acts and Laws of
the land.
36. Salient Features of GCC for
Services
⚫ Compliance to all Labour Laws
⚫ Ensuring Payment of Minimum
Wages
⚫ Standard bid document for
cleaning contracts
⚫ Two Packet system of tendering
for tender value of more than Rs 50
lakhs
⚫ When number of labour is
specified, increase in minimum
wages to be reimbursed during
currency of contract
37. Salient Features of GCC for Services
(Contd)
⚫ Single packet system of tendering up to
Rs.50 Lakhs with experience criteria
and financial eligibility criteria plus an
additional liquidity turnover criteria of
5% of the contract value.
⚫ Digital contract management system for
monitoring Data base, Certified
identification, ID cards, Biometric
attendance, Shift logic, Use of consumables,
Safety parameters etc.
⚫ Strict adherence to labor laws and
38. Salient Features of GCC for Services
(Contd)
⚫ For bids valuing more than 50 Lakhs,
two packet tendering system with criteria.
⚫ For Consultancy contracts QCBS system:
The tender will be evaluated based
on minimum qualifying score for the
quality in
the
technical
bid and also the
relative of quality
vis-a-vis cost
importance
subsequently
.
⚫ The bid highest weighted combined
score ( Bid Capacity) shall be selected
in case of multiple L1.
39. Salient Features of GCC for Services
(Contd)
⚫ Self attestation of the credentials/documents to
be uploaded. Affidavit based credential
verification on par with Works GCC.
⚫ PBG is 5% of the contract value and no SD.
⚫ Variations and other main aspects of
contract management are on par with ‘Works
GCC’
⚫ Tenders to be invited through GeM
⚫ Default tender notice for GeM
tenders is 10 days
⚫ Railways GCC for services and other
conditions will be Additional Terms &
Conditions (ATC) to the GeM’s General
Conditions of Contract
40. GCC for works Vs GCC for services
Subject GCC for works GCC for services
Bid
Securit
y
/EMD
To be rounded off
to Rs 100
Will be retained
by the railways as
part of security
for due
fulfilment of
the contract from
the successful
Bidder
MSME and Start-
To be rounded
off to
Rs 10
Earnest money
will be returned
to the
successful
bidder after
submission and
verification of
prescribed PBG.
Start-ups
41. GCC for works Vs GCC for services
Subject GCC for works GCC for services
PBG 5% of the contract
value within 21 days
12% penal interest
from 22nd
day
Liable for
Termination after 60
days from the date of
issue of LOA for Non
submission of PG.
Additional 10% PG
for excess operation
beyond 25%
Variation- Lesser 10%
PG for Savings more
5% of the contract
value within 30 days.
15% penal interest
from 31st
day
Should be
Terminated after 90
days from the date of
issue of LOA for Non
submission of PG.
Additional 10% PG
for excess operation
beyond 25%
Variation- Less 10%
PG for Savings more
42. Subject GCC for works GCC for services
SD 5% of the
Contract value
to be
recovered for
on account bills
@6%
NO SD for service contracts
as the PG collected is 5%
LD ½ % of 1%
of contract value
for each week or
part of the week.
Forfeiture of PG
is not linked
to quantum of LD
Shall not exceed 5% of
contact value + levy of token
penalty as deemed fit based
on merit of the case of
total value of contract.
If the quantum of LD
exceeds 50% of the Maximum
applicable LD, 25% of the PG
to be forfeited and if the
quantum of LD exceeds
75% of maximum
43. Subject GCC for works GCC for services
TWO
PACKET
SYSTEM
OF
TENDERING
Resorted to
for tenders
valuing more
than Rs.10
Crores.
Can be relaxed
with the
approval
of Competent
authority
Resorted
to for
tenders
valuing
beyond
Rs.50 lakhs
Can
be
relaxed
with the
44. Subject GCC for works GCC for services
Technica
l
Eligibilit
y criteria
One work of 60 %
value of the Tender
or Two works of
40% value of the
Tender or three
works of 30% of
the Tender during last
7 yrs
One work of
35% value of the
tender during last
3 yrs
Applicable for
Tenders costing more
than Rs.50 lakhs each.
Can be relaxed
by Competent
Authority
Applicable
for Tenders even
up to Rs.50 lakhs.
Can be relaxed
by Competent
Authority
45. Subject GCC for works GCC for services
TURNOVER□
□
□
The Tenderer must
have
minimum average
annual contractual
turnover equal to
=V/N or V Crores,
which ever is less;
where
V=
Advertised value of
the tender in crores
of Rupees
N= Number of years
prescribed
for completion of
work for which bids
Applicable for all
tenders irrespective of
the value. In addition
to 150% of
advertised tender
value during last 3 yrs
the bidder should have
access to or have
available liquid assets,
lines of credit and
other financial means
to meet cash flow that
is valued at 5% of the
estimate bid value, net of
applicants
commitments for
other contracts.
46. Subject GCC for works GCC for services
PRICE
VARIATION
CLAUSE
Applicable
for contracts
valuing
more than Rs
2 Crs and
having a
completion
period of
more than 12
Months
Labor
componen
Applicable for
contracts having more
than 18 months duration
irrespective of the value.
However, wherever
number of labor to be
employed is specified, the
agency shall be
compensated
increased wages during
the pendency of the
contractto ensure
payment of minimum
wages Labor component is
around 70%
47. Subject GCC for works GCC
for
service
s
Contractors
measurement
book is applicable
for
Provision for contracts costing more
than
Contractor’s Rs 20 Cr
Measurements
Up to 3 CC Bills can be
paid
for 75% amount of the bill Not
applicable
based on
measurements
made by the agency,
48. Subject GCC for works GCC
for
service
s
Bonus
for early
completio
n of work
Applicable for the Contracts
valuing more than Rs 20 Cr
and period ranging more than a
year
1% of the contract value for each
30 days of early completion
Not
applicabl
e
Maximum early completion
Bonus is restricted to 3% of the
contract value
49. Dispensation of calling of tenders and award of works
quotation basis Powers
I. Works directly related to safe running of trains
□ JAG/SG & SS independent charge
a. Up to Rs.2 lakhs per case without Finance
Concurrence, subject to an annual
limit of Rs.10 lakhs.
b. Up to Rs.5 lakhs per case with Finance
Concurrence, subject to an annual limit of
Rs.60 lakhs.
c. The works should be of urgent nature &
directly related to safe running of trains.
d. There shall not be any other contract through which
the work could be executed.
50. Dispensation of calling of tenders and
award of works quotation basis Powers
II. Other works including works directly related
to safe running of trains
B. SAG officers
a. Upto Rs.10 lakhs per case with Finance
Concurrence, subject to an
annual limit of Rs.1.2 crs.
b. Works should be of urgent nature &
directly related to safe running of trains.
c. There shall not be any other contract
through which the work
could be executed.
51. Award of works on quotation basis…..Important points
❖ Urgency, non availability of any other contract
and no splitting
❖ Approval, Concurrence, Sanction
❖ No cross usage of powers
❖ Preparation of NIQ and Publicity
❖ Notice for inviting quotation-Minimum 7
days ..can be reduced with the approval
accepting authority
❖ No EMD, PG or SD
❖ Opening and Tabulation of offers
❖ Vetting Comparative statement and role of
Finance
❖ Acceptance and issue of work order
❖ Negotiations are not stipulated in quotation
process, if the rate is not acceptable …recall the
quotation.
52. Direct Acceptance of Open e-tenders
□ Direct Acceptance – For the value including
and up to Rs.50 lakhs without TC.
□ Briefing Note need not be vetted.
□ LOA to be vetted.
□ Accepting Authority shall record a reasoned
note regarding evaluation and acceptance
– Speaking order.
□ Tender invited as per the rates/quantities
and as provided in the Sanctioned Estimate.
□ Accepting Authority can negotiate with L1 if
rate is on higher side.
53. Direct Acceptance is allowed only
⚫ When the tenders are invited through E-Tender
⚫ When the notice period is not lesser than 21 days.
⚫ When the Accepting authority intends not to accept
offer other than lower financial offer.
⚫ In all such cases, appropriate TC will deal the tender
before it is accepted.
Acceptance through recommendations of TC
⚫ For tenders above Rs.50 Lakhs and up to Rs.1 Crore,
tenders will be finalized by two members Jr. Scale TC with
the acceptance of Senior Scale (Independent Charge) or
JAG/SG.
⚫ For tenders above Rs.1 Crore and up to Rs.4 Crores., two
members Sr. Scale TC with acceptance of JAG/SG.
⚫ For tenders above Rs. 4 to 5 Crores, 3 member JAG/SG TC
& acceptance as per SOP
⚫ For tenders above Rs.5 Crores, normal procedure of 3
member TC of JAG/SG or higher as per MSOP and
acceptance as per MSOP by one level above the TC.
54. Delegation of powers for acceptance
for open,
limited & special ltd tenders
⚫ For value up to Rs.1 Crore, the tenders will be finalized by
two members Jr. Scale TC with the acceptance of Senior
Scale (Independent Charge) or JAG/SG.
⚫ For value above Rs.1 Crore and up to Rs.4 Crores, the
tenders will be finalized by two member Sr. Scale TC with the
acceptance of JAG/SG.
⚫ For value between Rs. 4 to 5 Crores, the tenders will be
finalized by a 3 member JAG/SG TC & SAG/ADRM.
⚫ For value between Rs.5 to 50 Cr Crores, the tenders will
be finalised by a 3 member TC of JAG/SG and acceptance
of SAG/ADRM.
⚫ For value between Rs 50 to Rs 100 Cr, the tenders will
be finalised by a 3 member TC of JAG/SG and acceptance
of DRM.
⚫ For value between Rs.50 to 300 Cr Crores, the enders
will be finalised by a 3 member TC of SAG and acceptance of
PHOD.
55. General stipulations
for Tender committees and
Acceptance
⚫ The TC shall be decided based on the value of the lowest
valid offer.
⚫ The acceptance authority is always one level above
the members of the TC
⚫ Even if one member in the TC is one level above the
delegated powers of normal TC for that particular grade,
due to not availability of officers, the acceptance has to be
higher level.
⚫ For example in a Sr Scale TC, if a JAG officer sits, the
acceptance has to be by SAG.
⚫ The TC for Packet I open tender will be based on the NIT
value as the financial offer is yet to be known.
⚫ TC and acceptance authority for single tenders shall be
one level above the normal TC.
⚫ Convenor of the TC is the Executive, second member will
be always from Finance and third member will be from a
sister executive department, as per MSOP.
56. Role of Tender
Committee
⚫ Evaluation of various offers received in the tender
and eligibility criteria as per the tender
conditions and deciding upon the lowest
acceptable offer.
⚫ Ensuring adequate funds and Estimate provision.
⚫ Ensuring rate reasonability of the lowest offer.
⚫ Negotiations for reduction in rates, if required. It
should be an exception.
⚫ Dissent Note in case of difference of opinion among
the members of the TC.
⚫ Recommendations for acceptance/discharge of
the tender.
⚫ Tender Committee Proceedings for acceptance.
⚫ Finalization has to be within the validity period of
the offers.
Note: The members have to ensure their specific nomination
for the tender and acceptance prior to participation.
Composition shall be of two member or three member as
per the MSOP.
57. Acceptance of Tenders & subsequent
action
⚫ The accepting authority can accept or reject
the recommendations .
⚫ The AA can direct the TC for re-looking in to
the recommendations or can direct to conduct
one more round of negotiations for obtaining
reductions in the rates..
⚫ The AA can over-rule the recommendations and
can accept the other offer duly recording the
remarks. If he is doing so the sole responsibility is of
AA.
⚫ Once the tender is accepted/concluded a letter
of acceptance can be issued.
⚫ On submission of performance guarantee within
the permissible time contract will be executed
58. Tackling Multiple L1 in
tenders
⚫ GCC for works provides selection based on Bid capacity for
the tenders valuing more than Rs 20 Cr each.
⚫ Nothing has been indicated for the situation of multiple L1 for
lower value tenders
⚫ These days as we are going for tenders seeking schedule-wise
rates, there is every possibility of multiple L1
⚫ General practice is that the tie is broken by asking a revised
offer through negotiations.
⚫ It may be necessary to provide in the special conditions of
the contracts a clause regarding methodology for deciding the
issue of multiple L1.
⚫ It may be insisted that the tenderers shall submit all the
work credentials and turnover, which may be reckoned to decide
successful bidder in case of multiple L1, based on the analogy of
bid capacity.
⚫ GCC for Services also provides evaluation of two packet system
of tendering based on the similar kind of Bid capacity as a
sample. However, on the GeM platform the L1 will be selected
randomly in Multiple L1 situations.
⚫ A specific mention can be made in the special conditions of the
59. History of E-
Procurement
• Minister for Railways announced in his Budget speech
in year 2004-05 that all procurement related
activities to be done online.
• Pilot Project started in May 2005 on NR as NREPS
(Northern Railway E-Procurement System)
• In Sep 2008, CRIS hosted IREPS website for all Zonal
Railways. CRIS is the agency for Developing all
modules for IREPS in consultation with NR as the Co-
ordinating Rly.
• 2010 stores e-tender was started.
• 2016 Works e-tender was started.
• Now it has been made mandatory that all the Stores
& service tenders have to be invited through GeM.
• However, if any Rly stores or services is not available
on GeM, the same can be procured through IREPS,
hosted and managed by CRIS.
• Now all earning tenders (except SMUs &GMUs ) are also
60. Execution of
Works
⚫ Should be as per the scope, terms and
conditions of the agreement.
⚫ Switching over to IR-WCMS, an IT
based for efficiency of entire
contract
including e-measurements
and
Application
managemen
t billing.
⚫ Inbuilt rates for variation up to 50%
⚫ Variations beyond 25% should have
prior concurrence/sanction duly
ensuring the estimate provision and
funds availability.
⚫ Sub- Agreement.
⚫ Extension of Validity.
⚫ Prompt settlement of bills/final bills.
61. IRWCMS
(Indian Railways Works Contract Management
System)Salient Features
• Digital platform to deal with works contract.
• Created and maintained by CRIS.
• Part of IRCEP Indian railway civil engineering Portal.
• It acts as bridge between IREPS and IPAS
62. ADVANTAGES
• Faster and efficient flow of
work.
• Transparency of work.
• Accessible 24x7.
• Error Free
• Easy decision making
• Reduced Paper work
63. Port of
LOA from
IREPS
PG
Verification
and
Submission
to Finance
Work
commenceme
nt letter
Execution
of work
Measurement
and entry of
executed work
by SSE
Forwarding
to ADEN
Forwarding to
Contractor by
ADEN
and acceptance
by contractor
Sr
.DEN/
DEN’S
CDM
for
Technica
l check
OS/Bills
for
General
check
Sr
.DE
N
IPAS for scrutiny
and
Payment
Flow Chart Explain Work Flow in IRWCMS
64. Variations in a Contract-
Why Variation Occur?
⚫ Detailed Estimate/Tender Schedules are
not prepared as per the requirement of
the Site.
⚫ Plans/Drawings are prepared and got
approved after the contracts are finalized.
⚫ Soil testing is not done for foundations.
⚫ Change in the scope of the agt due
instructions of inspecting officials.
⚫ User department not consulted when
the plans/drawings are made.
⚫ Tendency to compensate non
profitable items
65. Points to be kept in view for scrutiny
of Variation Statements
⚫ Justification for each item of excess
operation of major value items.
⚫ Reasons for introduction of new items.
⚫ Reasons for not anticipating the
addl work/variation.
⚫ Administrative approval of SAG officer
for varying the quantities beyond 25%.
⚫ Examining whether there is any vitiation in
the contract due the variation.
⚫ Examining as to why the addl work can
not be executed through a separate
contract.
66. Points to be kept in view for Variation Statements
⚫ Whether the variation is in permissible
limits.
⚫ Whether there are any favorable/lower
accepted rates in other existing
agreements for the items proposed to be
excess operated in the present contract.
⚫ Whether the proposed variation is
covered in the sanctioned estimate.
⚫ Inbuilt rates of 98% and 96% in an
agreement does not automatically
authorize for the excess operation.
67. Points to be kept in view for Variation Statements
⚫ The rates are reasonable when compared to the
other agreements/current market prices.
⚫ Examining that there is no undue advantage to
the contractor.
⚫ The rates proposed for new NS items
are comparable/reasonable.
⚫ The excess operation beyond 50% shall
be discouraged.
⚫ Negotiations shall be conducted for the
excess operation beyond 50% and
introduction of additional items.
⚫ There shall be a sub agreement for the
excess operation beyond 50% and
introduction of additional items.
68. ⚫ Vitiation is a change in the inter se position of the tenderers
due to erratic variation in the quantities during
execution. The resultant excess amount is the vitiated
amount in the contract.
⚫ Earlier any vitiation in the contract required to be
treated on single tender basis and sanction of GM was
required.
⚫ However, as per latest orders of Rly Bd, the vitiation
can be sanctioned as under:
▪ Tender value less than Rs 50 lakhs—10%
▪ Tender value more than Rs 50 lakhs—5%
▪ Approval of tender accepting authority
▪ No single tender basis
▪ Vitiation to be seen only with reference to the items,
rates, quantities and conditions available at the time
of tender opening
▪ Any subsequent changes/ additions by way of new items
shall not be taken in to account for computing the
69. Vitiation in a Contract– Example
SCH Value L1 % Value L2 % Value L3 % Value
A 1000000 10 1100000 10 1100000 9 1090000
B 500000 -5 475000 -4 480000 -3 485000
C 700000 10 770000 11 777000 11 777000
D 1200000 -5 1140000 -4 1152000 -3 1164000
3400000 3485000 3509000 3516000
Case I- when the Schedule with (-) percentage is operated less
SCH Executed L1 % Value L2 % Value L3 % Value
A 1000000 10 1100000 10 1100000 9 1090000
B 500000 -5 475000 -4 480000 -3 485000
C 700000 10 770000 11 777000 11 777000
D 900000 -5 855000 -4 864000 -3 873000
3100000 3250000 3221000 3225000
Inter-se position L3 L1 L2
70. Vitiation in a Contract Example-II
Case II- When schedule with higher percentage is operated more.
SCH Executed L1 % Value L2 % Value L3 % Value
A 1500000 10 1650000 10 1650000 9 1635000
B 500000 -5 475000 -4 480000 -3 485000
C 700000 10 770000 11 777000 11 777000
D 1200000 -5 1140000 -4 1152000 -3 1164000
4085000 4059000 4061000
Inter-se position L3 L1 L2
71. Final Supplementary
Agreement
⚫ After the work is completed or
otherwise concluded by the parties
with mutual consent, and taken over by
the Railway as per terms and
conditions of the contract
agreement, and there is unequivocal
no claim on either side under the
Contract other than as mentioned in
other conditions, the parties shall
execute the Final Supplementary
Agreement as per the format prescribed
in GCC.
⚫ This takes care of payments claimed
73. History of E-
Procurement
• Minister for Railways announced in his Budget speech in year 2004-05
that all procurement related activities to be done online.
• Pilot Project started in May 2005 on NR as NREPS (Northern
Railway E-Procurement System)
• In Sep 2008, CRIS hosted IREPS website for all Zonal Railways. CRIS
is the agency for Developing all modules for IREPS in consultation
with NR as the Co-ordinating Rly.
• 2008-09 Downloadable tender form was made compulsory. Cost of
tender form was to be submitted as separate instrument.
• 2010 stores e tender was started.
• 2016 Works e- tender was started.
• Now all tenders including earning tenders (except SMUs
&GMUs )are to be done through IREPS, hosted and managed by
CRIS.
