CONTENTS. Chapter 2 PROCUREMENT OBJECTIVE AND POLICY

Transcription

1 CONTENTS Foreword Chapter 1 GENERAL Chapter 2 PROCUREMENT OBJECTIVE AND POLICY 2.1 De-centralisation 2.2 Delegation of Powers 2.3 Capital Procurement 2.4 Revenue Procurement 2.5 Indigenous Procurement 2.6 Foreign Procurement 2.7 Central Procurement 2.8 Local Procurement 2.9 Cash and Carry Procurement 2.10 Spot Payment 2.11 Product Reservation 2.12 Price Preference 2.13 Purchase Preference 2.14 Time limit for Procurement and accountability Chapter 3 SOURCING AND QUALITY 3.1 Introduction 3.2 Registration of Firms 3.3 Vendor Evaluation 3.4 Removal from the Approval List 3.5 Ban and Blacklisting 3.6 Specifications 3.7 Waiver of inspection note Chapter 4 TENDERING 4.1 PAC Tendering 4.2 Single Tender 4.3 Limited Tender 4.4 Open Tender 4.5 Earnest Money Deposit 4.6 Preparation of Tender 4.7 Instruction to Bidder 4.8 Format of RFP 4.9 Despatch /Transmission of Tenders 4.10 Publicity 4.11 Composition of TNC i

2 4.12 Two Bid System 4.13 Tender Opening 4.14 Technical Evaluation 4.15 Commercial Evaluation 4.16 Amendment and Extension of Tender opening period 4.17 Resultant Single Vender Situation 4.18 Retendering Chapter 5 APPROVAL PROCESS 5.1 Individual CFA 5.2 Committee CFA 5.3 Sanction and Indent Approval 5.4 Acceptance of Necessity 5.5 Technical Negotiation 5.6 Price Negotiation 5.7 Composition of PNC 5.8 Price Reasonableness 5.9 Role of CFA in Purchase Decision 5.10 Apportionment of Quantity 5.11 Repeat Order 5.12 Accountability 5.13 Role of IFA 5.14 Recording of Minutes 5.15 Indenting Stage 5.16 Tendering Stage 5.17 Procurement Stage 5.18 Post Contract Management 5.19 Time Frame Chapter 6 CONTRACT 6.1 Law 6.2 Parties to Contract 6.3 Signing of Contract 6.4 Acceptance of Contract 6.5 types of Contract 6.6 Amendment to Contract 6.7 Termination of Contract Chapter 7 CONDITIONS OF CONTRACT 7.1 Introduction 7.2 Standard Conditions of Contract 7.3 Special Condition of Contract 7.4 Security Deposit/Performance Bank Guarantee ii

3 7.5 Delivery 7.6 Liquidated Damages (LD) 7.7 Quantum LD 7.8 Token LD 7.9 Waiver of LD 7.10 Payment Terms 7.11 Advance Payment 7.12 Paying Authority 7.13 Option Clause 7.14 Risk and Expense Purchase 7.15 Force Majeure 7.16 Arbitration Chapter 8 RATE CONTRACT 8.1 Introduction 8.2 Definition 8.3 Price Agreement 8.4 Types of items Suitable for RC 8.5 Authorities Competent to Conclude RC 8.6 Period of RC 8.7 Process of RC 8.8 Selection of Firms 8.9 Price Negotiation 8.10 Conclusion of Parallel RC 8.11 Signing of RC 8.12 Extension of RC 8.13 Termination and Revocation of RC 8.14 Payment Terms 8.15 Paying Authority Chapter 9 REVENUE PROCUREMENT OF STORES FROM FOREIGN COUNTRIES 9.1 Introduction 9.2 Scrutiny of Indents 9.3 Vendor Selection 9.4 Method of Tendering 9.5 Limited Tender Enquiry 9.6 Global Tenders 9.7 PAC Tendering 9.8 Single Tender without PAC 9.9 Two Bid System 9.10 Request for Proposals (RFP) 9.11 Clarification of Tender Documents 9.12 Amendment of Tender Documents iii

4 9.13 Period of Validity of Offers 9.14 Deadline for submission of Quotation 9.15 Modification and withdrawal of Quotation 9.16 Issue of Tender Enquiry 9.17 Procurements governed by General Contracts 9.18 Receipt and Opening of Quotations 9.19 Late Quotation 9.20 Preliminary Examination of Quotes 9.21 Resultant Single Vendor Situation 9.22 Comparative Statement of Tenders 9.23 Reasonability of Offered Cost 9.24 Constitution of TPC/PNC 9.25 Conduct of PNC s 9.26 Acceptance of Cost over estimates 9.27 Acceptance of Offer Other Than L Determination of L 1 on entire Package 9.29 Purchase Decision 9.30 Repeat Orders 9.31 Apportionment of Quantity 9.32 Amendment to Contract 9.33 Acceptance of Excess or Short Deliveries 9.34 Retendering 9.35 Standard Conditions of Contract Foreign Procurement 9.36 Performance Bank Guarantee 9.37 Quality Standards 9.38 Claims 9.39 Risk and Expense Clause 9.40 Payment Terms 9.41 Advance Payment 9.42 Delivery Schedule 9.43 Options Clause 9.44 Foreign Arbitration 9.45 Urgent Procurement through Indian Embassies Abroad 9.46 Inco Terms Chapter 10 STANDARD CONDITIONS OF CONTRACT - FOREIGN PROCUREMENT 10.1 Introduction 10.2 Prices 10.3 Terms of Payment 10.4 Terms of Delivery 10.5 Inspection 10.6 Receipt of Despatch 10.7 Warranty and Claims iv

5 10.8 Liquidated Damages 10.9 Force Majeure Termination of Contract Arbitration Penalty for use of undue Influence Access to Books of Accounts Patents and Other Industrial Property Rights Government Regulations Custom Duty Drawback Nondisclosure of Contractual Documents-Information Training Law Chapter 11 REPAIR CONTRACTS FOREIGN PROCUREMENT 11.1 Introduction 11.2 Preparation of Indents 11.3 Selection of Vendor 11.4 Request for Proposal 11.5 Terms of Delivery 11.6 Terms of Payments 11.7 Quality and Quantity of Goods 11.8 Claims 11.9 Guarantees Chapter 12 BANKING INSTRUMENT 12.1 Introduction 12.2 Letter of Credit 12.3 Reasons for using LC 12.4 Basic forms of LC 12.5 Revocable Letter of Credit 12.6 Irrevocable Letter of Credit 12.7 Confirmed Letter of Credit 12.8 Revolving Letter of Credit 12.9 Procedure for Opening LC Payment through Letter of Credit Essential Elements of LC Documents to be provided by the Seller Extension of LC Direct Bank Transfer Advantages of DBT Specified time limit and delivery schedule Performance Bank Guarantee v

6 12.18 Essential Element of PBG Salient Features of Guarantees Invocation of Guarantees Chapter 13 EVALUATION OF QUOTATIONS AND PRICE REASONABILITY 13.1 Introduction 13.2 Provisions of GFR 13.3 Evaluation of Quote 13.4 Preliminary Examination of Quotes 13.5 Comparative Statement of Tenders 13.6 Bench Marking 13.7 Reasonableness of Prices in Competitive Tendering 13.8 Last Purchase Price 13.9 Lack of Competition Adaptation of Discounted Cash Flow Technique (DCF) Discounting Rate Price Variation Clause/Price Adjustment Conditions Applicable to Price Adjustment Exchange Rate Variation (ERV) Documentation of claiming ERV Single Tender/Non Competitive Contracts Indigenous Procurement Single Tender/Non Competitive Contracts Foreign Procurement Data Base on Cost and Prices Chapter 14 CVC GUIDELINES 14.1 Introduction 14.2 Purchase Manual 14.3 Provisioning 14.4 Estimated Rates 14.5 Tendering 14.6 Purchase Policy 14.7 Reasonableness of Prices 14.8 Advance Payment and Bank Guarantees 14.9 Contract amendment Contract Monitoring CVC Website. vi

7 APPENDICES Chap Para A Time Frame Flow Chart 2 14 B Format of RFP/TE Indigenous Purchase 4 8 C Use of web site - CVC office order dated 05 Jul D Ministry of Finance letter OM dated 14 Jul (b) E Format for TEC report F Standard Condition of Contract Indigenous Procurement 7 2 G Dept of Def Procurement & Supplies Guidelines on Levy of LD dated 05 Nov H Format of Force Majeure Clause 7 15 J Format of Arbitration Clause 7 16 K Format of RFP/TE Foreign Procurement 9 10 L Policy on Indian Agents & Agency Commission 9 16 M INCO TERMS N Ministry of Finance, Banking Division letter on opening of LC O Format of PBG P Format of Cost Analysis 13 7 (e) Q MOF & CA letter dated 11 Nov 2002 on DCF vii