PROCESSING OF
TENDERS AND
CVC GUIDELINES
Kashi Nath Jha
Dir., NICF
WHY
TENDERING ???
?
Fundamental Principle of
Public buying
(A)Procurement
of goods in Public
Interest
i.Efficiency,
ii.Economy,
iii.Transparency
(B) Fair & Equitable treatment of
suppliers
(C)Promotion of Competition
PUBLIC PROCUREMENT :
YARDSTICKS
Specifications
in terms of quality
Need based procurement (avoid
excess)
Fair, Reasonable & Transparent
procedure
Procurement Vs Requirement
Reasonableness of Rate
Each stage of procurement
should be recorded
GFR: Rule 145
Purchase
of goods without quotation
Value upto 15000/-
Each occasion
Certificate to be recorded by the
competent Authority
I,------ am personally satisfied that these
goods purchased are of the requisite
quality and specification and have been
purchased from a reliable supplier at a
reasonable price.
GFR: Rule 146
Purchase of goods by
Purchase Committee
>15000/-
and upto 1Lac on each
occasion
Three members Committee as decided
by the HoD
Committees responsibilities
a)Market Survey
b)Reasonableness of Rates
c)Quality & Specifications
d)Identify appropriate supplier
Joint Certificate by the Committee
Purchase of goods by
obtaining bids(Tendering)
Ministry
/ Departments of Govt. of
India have been delegated full
powers to make their own
arrangements for procurement of
goods
Rule 141 of GFR says about
Central Purchase Organisation
(e.g. DGS&D) RATE CONTRACT
Types of Tender
In broader terms there are
three types of tender : A.Open Tender
B.Limited
C.Single
Tender
Tender
Method of obtaining bid :
Advertised Tender Enquiry
Tender value >= 25 Lac
(open )
Ad
in Indian Trade Journal(ITJ)
At least one National Daily having
wide circulation
Publish at own website & NIC
website
NIT to Indian Embassies abroad as
well as foreign embassies in India
Three Weeks time from date of
publication of bid
GFR : 151- LIMITED
TENDER
Value
up to 25 Lac
Bid document should be sent to
Regd. Suppliers by Speed
Post/Regd Post/Courier/ e-mail
No. of supplier firms in Ltd.
Tender should be more than three
Web based publicity
N.B. Sufficient time should be
given in Ltd. Tender
Two Bid System
Technical Bid (Tech. + Comm.
Terms )
2. Financial Bid (Item wise price )
(1) + (2) = (3) Main Envelop
Firstly Tech. Bid shall be opened
and evaluated
Secondly Fin. Bid of Technically
acceptable offer should be
opened & evaluated
1.
Single Tender
If only a particular firm is the
manufacturer
Emergent need to procure from a
particular source
Technical reason to be recorded
(standardization of machinery
HP, SONY etc. )
N.B. - Single response to an open
bid cant be termed as Single
Tender
Standard Bid Document : Instruction
to Bidder
Conditions of Contract
Schedule of Requirement
Specifications & allied Tech.
details
Price Schedule
Contract Form
Other Standard Forms
Earnest Money Deposit
To
safeguard the interest of Deptt
(withdrawal / alter the bid by bidder)
Exemption Regd. With Central
Purchase Organisation / National
Small Industries Corporation
EMD - 2 % to 5% of estimated value
Can be DD/ FDR/Banker Cheque /BG
Unsuccessful bidders EMD should be
returned /refunded at the earliest.
Performance Security
From
the successful bidders
Amount 5% to 10%
DD/FDR
Should be valid for 60 days
beyond the date of completion of
all the contractual obligations of
the supplier including warranty
Bid Security should be refunded
on receipt of Performance Security
Process at a glance
Estimate (Qty. and Amount)
EOI Expression of Interest
RFP/RFQ Request for Proposal / Quotation
PBC Pre Bid Conference
NIT Notice Inviting Tender
APPROVAL
WEB PUBLICITY
EMD Earnest Money Deposit
BIDDING
TOC Tender Opening Committee (Tech)
APPROVAL
Process at a glance
TOC Tender Opening Committee(Fin.
Bid)
APPROVAL
TEC Tender Evaluation Committee
APPROVAL
PO - Purchase Order
AWARD OF CONTRACT
SD - Security Deposit
AGREEMENT
REFUND OF EMD
NOTICE / WEB PUBLICITY ABOUT AWARD
OF CONTRACT(Downloadable form)
EVALUATION PROCESS micro
Tender is sealed
Tender documents must clearly
specify evaluation criteria.
Two types of Bids:
Technical
Financial
Tender
evaluation to be in
accordance with evaluation
criteria.
EVALUATION PROCESS micro
Time
taken for evaluation and
extension of tender validity.
Process of tender evaluation to
be confidential until the award
of the contract is notified.
Difference between TOC (Tender
Opening Committee) & TEC
(Tender Evaluation Committee)
EVALUATION PROCESS micro
The
factors for initial
examination:
Whether the tenderer meets the
eligibility criteria ?
Whether the crucial documents have
been submitted & duly signed /
attested ?
Whether the requisite EMD (Earnest
Money Deposit) has been furnished ?
EVALUATION PROCESS micro
Satisfaction
of Conditions specific to the
contract
Sample Testing
Capacity Evaluation.
Turnover
Statutory documentation
Arrival at Outcome Price of the bid
Determination of L-1, L-2, L-3
Determining Reasonableness of the L-1
Rates
Recommendation for Negotiation (if
require)
CVC Guidelines: Pre-Award
Stage
Financial
and Technical sanction of
competent authority is available.
Adequate and wide publicity is given.
Advertisement is posted on website and
tender documents are available for
downloading.
Convenient tender receiving/opening time
and address of the tender receiving
officials/tender box are properly notified.
In the case of limited tender, panel is
prepared in a transparent manner clearly
publishing the eligibility criteria. The panel
is updated regularly.
Pre-qualification criteria are properly
defined/ notified.
CVC Guidelines: Pre-Award
Stage
Short
listed firms/consultants are fulfilling
the eligibility criteria. There is no deviation
from notified criteria during evaluation.
Experience certificates submitted have
been duly verified.
Tenders/bids are opened in the presence of
bidders/their authorised representative.
Corrections/omissions/additions etc., in
price bid are properly numbered and
attested and accounted page wise. Tender
summary note/ Tender opening register is
scrupulously maintained.
Conditions having financial implications are
not altered after opening of the price bids.
CVC Guidelines:
Negotiations
Circular No. 4/3/07, 3rd March, 2007
As post tender negotiations could often
be a source of corruption, it is directed
that there should be no post-tender
negotiations with L-1, except in certain
exceptional situations. Such exceptional
situations would include, procurement of
proprietary items, items with limited
sources of supply and items where there
is suspicion of a cartel formation. The
justification
and
details
of
such
negotiations should be duly recorded and
documented without any loss of time.
Latest guideline of CVC on
negotiation
Procurement of Works,
Goods and Services Guidelines on Tenders/Use
of
website
http://cvc.nic.in/proc_works.htm
