CALLING AND FINALISATION OF TENDERS

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CALLING AND FINALISATION OF TENDERS
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NOTICE INVITING TENDER

• Name of work and its location
• Brief description of work
• Estimated cost
• EM and mode of payment
• Cost of Tender Document
• Date, Time and Place of issue of Tender Form
• Date, Time and Place of submission of Tender Form
  

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• Date, Time and Place of Opening of Tenders
• Details of Postal dispatch of tender forms
• Eligibility Criteria for tender
• Details of pre-bid meeting, if any
• Name and designation of persons designated for
  seeking clarification
• Avoid use of abbreviations.
• Complete Tender Document to be available on
  website for downloading and use (RefRly. Bd.s
  Lr. No. 2003/RS(G)/779/13 Dt.4.2.2004)

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NOTICE INVITING TENDER

• If Law and Order problems are anticipated, tender
  dropping can be arranged at more than one
  place.(Bds Lr.No. 90/CT-I dt 28.10.98)
• Sale of tender documents should normally start
  from the date of publication of Tender
  Notice.However in any case period of sale of
  tender should not be less than 15 days. (Bds
  Lr.No. 03/CE/I/CT/85 dt.9.5.94)

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PRE-BID MEETING

• To explain the intricacies of project/work to
  prospective bidders
• Required in case of high value contracts
• Attended by executives and finance officers
• Should be held well in advance of date of opening
• Clarifications given during the Pre-Bid Meeting
  can be made part of Tender Documents

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OPENING OF TENDERS

• Specified officials (Representatives of Executive
  and Finance Departments) to Open
• At nominated place and time in presence of
  authorised representatives of tenderers
• Seal of Tender Box to be checked
• All the tenders (for one work) to be numbered

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OPENING OF TENDERS

• Cover of tender form to be initialed as token of
  having verified the seal of cover
• Covers to be opened number to be put on top
  sheet and initialed
• Number to be put on any loose sheets
• All important pages to be initialed with date.

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OPENING OF TENDER

• Number of conditions quoted is counted and
  written on tender form
• All corrections should be noted, recorded and
  initialled.
• Number of corrections and over-writings to be
  counted page-wise and total written on each page
• Check completeness of tender form
• Check if tenderer has altered any part of tender
  document.

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OPENING OF TENDERS

• Rates to be read and announced
• If rates are not written in words and figures, it
  should be recorded so
• Rate to be written in words if not written by
  tenderer
• No clarifications to be solicited from tenderers
• Samples to be initialed.

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OPENING OF TENDERS

• DELAYED tenders to be marked so and opened in
  same manner
• LATE tender to be marked so and opened if
  received during opening session. If received
  afterwards, to be opened by executive.

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BRIEFING NOTE

• Name of work
• Authority
• Tender notice number
• Tender opening date time
• Tenders sold offers received
• Tender opened by

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BRIEFING NOTE

• Earnest money details
• Validity of tenders
• Eligibility/Credentials of tenderers
• Special conditions by tenderers
• Comparative Statement.

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BRIEFING NOTE

• Samples submitted
• Recent accepted rates
• Tender committee nomination and accepting
  authority
• Each page of briefing note to be signed
• Briefing note to be vetted by associate finance.

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CONSTITUTION OF TENDER COMMITTEE

• Normally Accepting Authority nominates tender
  committee as per delegation of power
• There can be a standing tender committee
• In case of Single Tender,one stage higher TC
  (Bds Lr. No.94/CE-I/CT/4 dt.17-9-97)

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CONSTITUTION OF TENDER COMMITTEE

• In case of non- availability,higher grade officer
  can sit in the TC
• If officer competent to be the accepting
  authority has to act as member of TC, the
  recommendation should be put up to next higher
  authority, for consideration.

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CONSIDERATION OF TENDER BY TC

• Necessary sanctions / approvals
• Tender procedure
• Validity of tender EM, Sample, Only tender,
  Delayed / Late tender
• Eligibility Criteria /Credentials
• Technical
• Financial
• Competition
• Reasonableness of Rates
• Works in hand

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ONLY/LONE TENDER

• Single offer in response to open tender can be
  considered by TC
• Single offer in response to LT should be
  considered only in very urgent cases
• REFRBs Lr No 50/145/1/5 dtd. 12-01-1950

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DELAYED / LATE TENDERS

• Generally not to be considered
• Late tenders received from established/reliable
  suppliers conferring substantial financial
  advantage can be considered by Railway after
  obtaining Boards approval
• REFBds Lr.No. 83/WI/CT/17 dt. 30.07.84

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TECHNICAL CREDENTIAL- MATTERS TO BE CONSIDERED

• Experience in works of similar nature and
  magnitude
• Plant and machinery available and proposed to be
  deployed
• Manpower available and proposed to be deployed

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FINANCIAL CREDENTIALS

• Balance sheet
• Turnover
• Work in hand
• Details of assets fixed and liquid

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ASSESSMENT OF REASONABLENESS OF RATES

• Factors
• Average of recent accepted rates
• If only one accepted rate market rate analysis
• Market conditions
• Quantum of work
• Location and Site conditions
• Nature of work
• Period of completion

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ASSESSMENT OF REASONABLESNESS OF RATES

• Idle capacity of contractors
• Law order situation
• Competition
• Timing of tender
• Reasonableness if rates to be assessed for each
  schedule

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ASSESSMENT OF REASONABLESNESS OF RATES

• Market Rate / Rate Analysis for major items
• If high rates justified on the basis of urgency,
  the fact should be established
• Rates received in LT should be compared with
  rates received in open tenders also

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CONSIDERATION OF TENDER

• Offers received after tender opening should not
  be allowed to vitiate consideration of tenders
• If any offer is being overlooked, sufficient
  reasons, supported by facts, should be recorded

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RECOMMENDATION OF TC

• Recommendation can be for
• Acceptance (unconditional or conditional)
• Negotiation
• Discharge

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REASONS FOR DISCHARGE

• Ring formation
• Insufficient response
• Exceptional high rates
• Special conditions
• Unacceptable tender documents
• If major modifications proposed in tender
  documents, quantities etc.

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MINUTES OF TENDER COMMITTEE MEETING

• All pages and all corrections to be signed by all
  member
• Dissenting notes in the body of minutes
• No recording of notes or cross notes on file
• Involvement of supervisory staff/subordinate
  staff to be avoided.
• Comments should be in sufficient details

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NEGOTIATIONS

• With lowest eligible valid tenderer only
• Should be completed within period of validity
• At the end of negotiations the tenderer should be
  given sufficient time to analyse and submit
  negotiated offer
• Negotiated offer to be signed by authorised
  person

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NEGOTIATIONS

• Negotiations should be scarcely resorted to. Not
  to be resorted unless substantial financial gain
  is expected
• If L1 withdraws before work order is placed or
  supply/execution takes place, there should be
  re-tendering (Ref. CVC No. 98/ORD/1 dt.
  24.8.2001)

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NEGOTIATIONS

• In case of tenders with 10 purchase preference,
  the lowest PSU within 10 of lowest also to be
  called for negotiations.

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ACCEPTANCE OF TENDER

• Accepting authority has full authority to accept,
  modify or reject the recommendation of TC
• Normally case not to be sent back to TC for
  reconsideration
• AA to record reasons if recommendation not
  accepted.
• Acceptance to be recorded on the body of TC
  minutes.

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COUNTER OFFERS

• If overall value of L-1 is not unreasonably high
  but rate(s) for certain item(s) in a schedule or
  the total value of a schedule happen to be higher
  than those quoted by other tenders or LARs the
  method of counter offering the lower rate(s) may
  be adopted.