Purchase Procedure and Lead Time of Ongc Final

8/13/2019 Purchase Procedure and Lead Time of Ongc Final

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Acknowledgement

Behind every achievement lies an unfathomable sea of gratitude to those who have extended

their support and without whom it would never have come into existence. To them I say my

words of gratitude.

I would like to express my deepest sense of gratitude to Mr. Akhilesh Mohan, ead!

Inventory and store department, "#$% for giving me this opportunity to undergo &ro'ect at

"#$% (td. I would also like to extend my heartfelt gratitude to his constant encouragement

and valuable insight, guidance and facilities at all phases of the pro'ect.

I would like to thank Mr. Mohan! Manager, &urchase department for helping me in providing

data and information regarding purchase procedure.

I would like to thank Mr. )))))))))))))))))))my pro'ect guide, for his valuable

suggestion and guidance. The knowledge provided by them has been a great value addition

for me and will go a long way in shaping my promising career.

(ast but not least, I would like to thank all those who directly or indirectly help me in

successful completion of pro'ect.


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PREFACE

*xperience makes man perfect. By facing practical situation, one can get new ideas.

Theoretical studies are something, which came by practically. Management student can make

use of whatever he or she gets from his or her Academic background. &ractical is the path

through which one can reach his destination. But it is essential to have clear ideas to reach

that destination and that is what theoretical knowledge means. In short, theoretical is the

instruments which push back the practicalone.

It has been a great experience to me to work and having the latest information about the

scenario of market. "#$% is one of the leading companies in India. &urchasing occupies

important function in the organi+ation, whether it is large or small. And also calls for efficient

planning. I have tried to understand procedure for purchasing raw material. I have tried my

best to get the necessary information for pro'ect which includes secondary as well as primary

data.


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TABLE OF CONTENTS

%hapter #o. %ontent &age #o.

*xecutive ummary

- "b'ective and esearch Methodology

"b'ective of the tudy

esearch Methodology

ources of data collection

(imitation

/ %ompany &rofile

IntroductionInfrastructure

"#$% 0ision

"#$% Mission

$lobal anking

Awards

1uture &lans

0ision

Mission

"b'ective

"rgani+ation tructure

2 &urchase &rocedure of "#$%

%lassification of Material

1unctions of &urchase 3epartment&rocedure for placing indent on material management

%entrali+ed43ecentrali+ed &urchases

egistration or *mpanelment of firm

&urchase method

Two Bid ystem

hort listing of bidders and finali+ation of bid evaluation

criteria


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Invitation of Tender

%lauses in Tender

%omparative tatement

Technical %larification

Tender %ommittee

%onsideration of offer

5 %onclusion

6 Bibliography


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Executive Summary

In today7s dynamic world every organi+ation is striving hard to achieve best global practices

to win over competitors and customers with utmost satisfaction. They are leaving no stones

unturned for the same.

&urchase 1unction, as we know the important function in all type of organi+ations. 8ithout

purchase of materials which are re9uired for producing goods, organi+ation is not able to

meet the demands of goods.

&urchase procedures play a very important part in inventory management. %ost reduction

measures can be taken right from the purchase process.

&urchasing professionals add value to organi+ations in controlling supply costs and sourcing

supplies from different sources to offer the best pricing on a particular item. &urchasing

within organi+ations is often overlooked and companies usually pay more for items than they

really need. &urchasing professionals can save money for organi+ation if a company

implements a mandatory purchasing policy re9uiring employees and departments to route all

purchasing re9uests to the purchasing department or a particular employee

&urchasing professional:s goal to a company should be to provide the best pricing for

everyone as well as communicating across the organi+ation to find out needs. esearch is a

critical component of any purchasing professionals daily work schedule in finding sources

that offer 9uality products or services at a price that your organi+ation can afford.


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%ompanies should encourage their purchasing staff to save money and to find the best overall

value for the company:s money.

CAPTER !"

OB#ECT$%E AN& RESEARC 'ETO&OLO()

OB#ECT$%E OF TE ST*&)

1ollowing were the ob'ectives of the study;!

-. To study the main function of purchase department at "#$%.

/. To study the purchase procedure followed in "#$%.

2. To understand the problem faced by the purchase department.

5. To know vendor selection procedure of the company.

6. To give suggestions for improvement in purchase procedure, if any.

RESEARC 'ETO&OLO()

**A% 3*I$#

A research design is a framework to prepare plan or study. It is useful as a guide to collect

the data and analy+ing it. It is a blue print that is followed in completing the study.

esearch design is the conceptual structure within which the research will be conduct.

Type of esearch ; The study exploratory in nature.

SO*RCES OF &ATA COLLECT$ON+


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&rimary data will be collected through interview of official

staff of purchase department.

econdary data will be collected through assistant ledger book,

purchase department records, M#, website, 'ournals, etc.

TOOLS AN& TECN$,*ES OF &ATA ANAL)S$S+

3ata analysis will be done with the help of simple percentage and graphs. &ie and Bar chart

will be used to analy+e data.

L$'$TAT$ON

-< This pro'ect is restricted to study purpose only and can be used keeping in view

the ob'ect that is made for.

/< The respondent in the pro'ect may not reveal important 4 confidential information

pertaining to the company policy and for this the pro'ect should be used keeping in view the

said limitation.

2< 1inding of the study will be based on the assumptions that respondents have given

correct information.

5< The pro'ect is made with the help of secondary data available.


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CAPTER ! -

CO'PAN) PROF$LE

$ntroduction+

Born as a modest corporate entity within serene imalayan settings on -5 thAugust -=6> as

%ommission, "il and #atural $as %orporation (imited ?"#$%.= billion tonnes of In!place hydrocarbon reserves with more than 2

discoveries of oil and gasC in fact, > out of the D producing basins have been discovered by

"#$%; out of these In!place hydrocarbons in domestic acreages, Eltimate eserves are /.5/

Billion Metric tonnes ?BMT< of "il &lus "il *9uivalent $as ?"F"*$


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@"#$% has bagged -/ of the /2 Blocks ?more than 6G< awarded in the rounds of

bidding, under the #ew *xploration (icensing &olicy ?#*(&< of the Indian $overnment.

"#$% has bagged -D out of 2- blocks awarded in #*(& round 0III ?-5 as operator


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@ &ipeline #etwork ?km< ;!-D,6

@ 3rilling igs ;! >=

@ 8ork "ver rigs ;! 6=

@ 8ell timulation unit ;!==

@ eismic survey crew ;! 25

@ (ogging Enits ;! 2/

@ *ngineering 8orkshops ;! /

@ 0irtual eality %entre ;! 6

@ egional %omputer %entre ;! 6

O00./ore

@8ell &latforms ;! ->

@ 8ell!cum!&rocess &latforms ;! 6

@ 8ater In'ection &latform ;! D

@ &rocess &latforms ;! //

@ 8ell timulation unit ;!D

@ 3rilling igs ;! =

@ &ipeline #etworks ?km< ;! 5,6

@ "ffshore upply 0essels ;! D2

@ Multi &urpose upport 0essel ;! >


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@ eismic 0essels ;! -

ON(C %$S$ON

To be a world class "il and $as %ompany integrated in energy business with dominant

Indian leadership and $lobal presence.

ON(C '$SS$ON

3edicated to excellence by leveraging competitive advantages in H3 and

technology with involved people.

Imbibe high standards of business ethics and organi+ational values.

Abiding commitment to safety, health and environment to enrich 9uality of

community life.

1oster a culture of Trust, openness and mutual concern to make a stimulating and

challenging experience for our people.

trive for customer delight through 9uality products and services.

(LOBAL RAN1$N(

"#$% ranks as the 2rd "il H $as *xploration H &roduction ?*H&< %ompany in

Asia, and /2rdamong leading global energy ma'or as per &latt7s /6 $lobal *nergy

%ompanies (ist for the year /=.


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"#$% ranks /5th among the $lobal publicly!listed *nergy companies as per L&1%

*nergy 6 ?an /uirements to the purchasesection through recoupment demands/


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-6. 8herever maximum4minimum and re!order levels have not been fixed in themanner stated above, the indenting section will continue to assess its re9uirementand to place its indent on the purchase section after obtaining financial concurrence.

1E/ The re#iew of le#els in respect of $toc Items will %e carried out once a year/

)owe#er( if circumstances( such as change in the programme of operation or

change in norms( necessitate it( the re#iew will %e carried out earlier/

#6. A!-8oc P,rc"ases

4s far as possible, adhoc purchases will be avoided. Items, for which

there is repeated emergenc( purchase, will be added to the list of

Stock Items, which would be progressivel( increased and the list of &on-

Stock items correspondingl( reduced.

#9. :,!5et Allocation

5uarterl( statement of budget allocation and utilisation would be

forwarded b( 4ssociated Finance to the concerned Materials

Management # *ro6ect 3ead in respect of Stock and &on-Stock Items.

7. 8hen a budget is drawn up on a functional basis and gives the break-upof the provision of materials, item wise indent up to s.!,"""#-within the

budgetar( provision, need not be referred to Finance again for

concurrence. 3owever, in the absence of budget on functional basis, prior

financial concurrence will be obtained b( the indentor before placing

indent on the purchase section, irrespective of the amount involved.

The sanction from the competent authorit( will accompan( all indents.

$;. )ro,pin5 o0 Items

8henever the purchase involves items to be purchased in groups, the

same grouping should be intimated alongwith indent b( the indentor.

$#. Separate in!ent 0or items in!epen!ent in nat,re

It is necessary that sieving of items is properly done at the indent stage itself so thatitems independent in nature are indented separately.

$$. Materials Co!e an! Cons,mption Sc"e!,le


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It will %e ensured that material code and liely consumption schedule of $tores

and $pares is indicated in the purchase indent failing which the indent will not %e

accepted/ In case of new %uys( pro#ision will %e made in tender document and

supply order to effect that the supplier will send catalogue and manual of rele#ant

item,s. to In#entory Control Cell under intimation to order placing authority within two

months from the date of the receipt of supply order ,or as desired %y the orderplacing authority depending upon the deli#ery period./

In case of new %uys and where permanent codes ha#e not %een allotted *egional

Corporate +aterials and 9ogistics Organisation ,*C+9O. will %e consulted who will

act as Coordinating Agency of the Pro8ect B *egion and will interact with In#entory

Control Cell to get the permanent code/ -here the material code is not

communicated %y In#entory Control Cell within F days from the date of reference to

them( temporary code will %e allotted %y the *C+9O/ Indent can %e raised %y the

Indentor with such allotted temporary code with the prior appro#al of concerned

*egional irector/ Permanent code num%er o%tained %y *C+9O will thereafter

%e notified to concerned Indentor and Purchase $ection/

$%. In!ent For Stores & Spares T"ro,5" RCMLO

4ll Indents for procurement of stores and spares will be routed through

CM9% at egions # *ro6ects and through CM9% in the 3rs. who will

scrutini:e the same with reference to stock in hand, material in pipe

line and likel( consumption schedule. This e/ercise should not takemore than five da(s.

CENTRALISE E-CENTRALISE P(RC8ASES

In +rilling ;usiness 'roup, purchase functions of the following items would be

handled as under)-

Sl. No. Item :ase

1/ 4arytes Chennai

2/ C+C ehradun

5/ Oil -ell Cement and Cement additi#es +um%ai

D/ 4its

/ 4low Out Pre#entors and accrssories ehradun


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E/ *ig ,purchase and ser#ice contracts.

F/ $pares and assem%lies for onland rigs ehradun

/ $pares and assem%lies for offshore rigs +um%ai B Chennai

H/ -ell )eads

10/ Imported mud chemicals and mud additi#es ehradun

11/ Casings 50 and 20 re>uired for offshore operations +um%ai

12/ Others whether indigenous or imported for onland and

offshore operations

ehradun

*rocurement functions in respect of other ;usiness 'roups will be handled as

per instructions issued from time to time.

*"GI$T*ATIO6 B"+PA6"9+"6T O? A ?I*+

RE)ISTRATION OF FIRMS FOR INI)ENO(S P(RC8ASES ON LIMITE

TENER :ASIS

For the purpose of sending enuiries for indigenous purchases against limited

tenders to be invited in the normal limit of the value of limited tender,registration of firms will be done b( 3ead of Materials Management1T;'2 at

egions # *ro6ects # 3rs keeping in view the reuirement of the work centre.

Firms willing to register at more than one work centre, will reuire to get

themselves registered with all such work centres. The firm1s2 will be registered

for each group of items separatel( for which the( will need to send separate

application alongwith application fee as indicated. In egistration Certificate

also it will be made clear that the facilit( for e/emption from pa(ment of

earnest mone( # furnishing of bid bond will be available in normal limited

tenders onl(.

The following norms will be adopted for registration of firm?s< on tender!wise basis;!

i.

ii.

iii.

Income Ta Clearance Certificate/

$ales Ta *egistration num%er %oth $tate and Central/

0L of annual turn o#er of the item,s. B group of item,s. for which

the party re>uires registration( duly certified %y a Chartered

Accountant/


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A non!refundable application fee of s.6. will be charged from each party for registrationfor each group of item?s


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Purchase will %e made through any of the following methods

i. Purchase through irectorate General of $upplies and isposals ,G$&.

ii. Open tenders

iii. 9imited tenders

i#. $ingle tender

#. Petty purchases B )and >uotations/#i. Annual *ate Contracts#ii. 4oard of Officers

1/ P(RC8ASE T8RO()8 )S&

There are three ways of purchase of materials through the G$&

a/ 4y placing indent on G$& who on his side in#ites the tenders from the dealers on

his appro#ed list/

%/ Through G$& *ate B *unning Contract In this case also the indents are to %e

placed on G$& who places order on the firms with whom they ha#e concluded

the rate B running contracts( such as petroleum products/

c/ Through *ate Contract concluded %y the G$& In this case no indent is to %e

placed on G$& %ut the officer of the Organisation who is appointed %y the

G$& as !irect emanding Officer!( can place order direct with the firm on *ate

Contracts concluded %y the G$&/

2/ OPEN TENERS

*xcept for situations when the value of the tender is more than s. /6. lakhs, opentenders will be invited. "pen tenders will be advertised through the press.

Tender inviting ection shall forward the copy of #IT to %orporate %ommunicationsdepartment for publishing #ITs in the newspapers in concise format. The number and type ofnewspapers in which #IT is to be published shall be decided by the %orporate

%ommunication 3eptt. 1urther, the detailed #IT alongwith complete Tender 3ocuments willalso be uploaded on "#$%7s tender website.


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"pen tender bidding documents are to be issued to the bidders on application againstprescribed tender fee. At least a month7s time should be allowed for submission of bids,after the date of publication of advertisement. In emergent cases, however, it may be

curtailed to /- days.

In#itation of open tenders will not %e necessary in the following cases

i. Purchases against G$& *ate ContractJ and

ii. -here the sources of supplies are nown and limited

In#itation of 9imited Tender( in cases where open tender is to %e in#ited as per #alue of the

tender( should %e restricted to eceptional cases( for which appro#al should %e o%tained

from CPA not %elow 9e#el1 eecuti#e for cases #aluing upto their purchase powers under

+PD,%.( after recording #alid reasons/ )owe#er( concerned irector shall ha#e full powers(

including for the cases falling under the powers of "PC/

Procedure for 9imited Tender( as stipulated should %e followed in such cases also/

.In case( 9imited Tenders are proposed to %e in#ited ,as against open tender to %e in#ited

%ased on the #alue of the tender.( then the %idders should %e identified and shortlisted %y

the indentor( who should also determine and certify that shortlisted %idders meet the pre

>ualification criteria ,technical. ad#ised as per the instructions in #ogue/ $uch shortlisting of

the %idders and the PNC are to %e appro#ed %y the competent authority( as per the

pro#isions/ Thereafter( pre>ualification criteria ,technical. need not %e incorporated in the

tender/

5/ LIMITE TENERS

For purchases of the value of s.

advertised through the press.

In accordance with the instructions issued from time to time, all limited tenders of valueabove 6. lakhs are to be posted on "#$%7s tender website, along with the pre!9ualificationcriteria which has been used for selecting the vendors. After framing the pre!9ualificationcriteria, indentor would forward the name of those vendors to the MM 3epartment who meet

the pre!9ualification criteria. Besides issuance of the tender en9uiry to vendors who meet thepre!9ualification criteria, MM 3epartment would also publish the tender en9uiry on the


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website along with the pre!9ualification criteria. After publication of the limited tenderen9uiry on the web site, tender en9uiry can also be issued to those vendors who re9uest"#$% for issuance of the tender en9uiry and who meet the pre!9ualification criteria. uchre9uests are to be entertained within - days of publication of the tender en9uiry on the website. Indenting 3epartment would have to certify that such vendors meet the pre!9ualification

criteria and based on this certification, en9uiry would be issued by MM 3epartment.

The names and addresses of vendors to whom the (imited Tender en9uiry has been issuedshould also be posted on the website alongwith the &Q%.

1or limited tenders upto s 6 lakhs, the purchase officer may send en9uiries to vendorsknown to "#$%. The en9uiries will also be sent to the registered vendors under the headingNegistration of 0endors.O In!charge MM at each work center shall make necessaryarrangements for registration of vendors, keeping in view of the re9uirements of the workcenter.

"n>uiries should %e sent to as many firms as possi%le to ensure competition/ In cases

where the num%er of nownBregistered firms dealing with the materials under purchase is

large( en>uiries may %e limited as gi#en %elow/ In such cases( firms will %e sent

en>uiries in rotation ensuring healthy competition and allowing all firms an opportunity to

compete o#er a period of time/ The list of selected suppliers( to whom en>uiries ha#e to %e

sent( will %e appro#ed %y the competent purchase authority/ The minimum num%er of

in>uiries to %e floated will %e as under

?or tenders upto *s/1(00(000B en>uiries

?or tenders from *s/1(00(001Bto *s/(00(000B F

?or tenders from *s/(00(001B to *s/10(00((000B !

?or tenders from *s/10(00(001 to *s/2(00(000B 10 !

?or tenders #aluing less than or e>ual to *s/ 9ahs( when the num%er of #endors nown

to B registered with O6GC is less than the re>uired( the en>uiry may %e sent to all such

#endors after o%taining the appro#al of an officer one le#el higher than the Competent

Purchase Authority/

?or tenders #aluing a%o#e *s/ 9ahs( if the num%er of #endors who meet the PNC are less

than the re>uired( appro#al of an officer one le#el higher than the sanctioning authority shall%e o%tained %y the indenting department and con#eyed to ++ department alongwith the


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indent/ )owe#er( concerned irector will ha#e full powers to appro#e such cases( including

"PC le#el cases/

Proce!,re 0or p,rc"ases ,pto Rs ' lak"

The dealing officer will float limited tender en>uiries Qas per specified format/ After receipt of

offers within the closing time and date( the offers shall %e opened %y the nominated opening

officers from ++ and ?&A/ After opening( the offers will %e handed o#er to the concerned

dealing officer who shall ta%ulate the data from the offers in the comparati#e statement( to %e

prepared within one woring day/ In all cases where technical e#aluation is in#ol#ed( the

duplicate copy of the offers are to %e referred within one woring day to the indentor for

technical comments/ The indentor Qnot %elow "1R shall furnish the technical comments

immediately( which in no case shall eceed two woring days/

D/ P(RC8ASE ON SIN)LE TENER

a/ P,rc"ase o0 non-proprietary items

&urchase of non!proprietary items, on single tender basis, will be resorted to only inthe situations of emergencies like flood, fire, civil disturbances, war, cyclones, blow out and

operational break down. 3etailed 'ustification for resorting to emergency 4 operational breakdown should be recorded at the time of processing the proposal for approval of competentauthority as per powers delegated.

%/ P,rc"ase o0 proprietary items

An item is Proprietary( if that item ,)ardwareBe>uipmentB$oftwareBstores. is

madeBde#eloped and mareted %y a particular firm ha#ing the eclusi#e right to manufacture

and sell it/ $uch proprietary ArticleB Item can %e procured( if the indenter ensures and

certifies that only specific mae and model are accepta%le and no other mae and model is

accepta%le as su%stitute on technical reasons/ Purchase of proprietary items should %e

made if it is a%solutely essential/

3eclaration of an item as proprietary will be done with the approval of competent authority,as per powers delegated. owever, before submitting the proposal to competent authority forapproval, the same will be examined by the In!charges of MM and 1inance disciplines of therespective work center. 8here there is an alternative to suggest, In!charges of 1inance 4 MM

disciplines will advise the indentor to examine and consider the alternative.


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Accordingly( for such purchases of proprietary items from single source( Indenter shallpro#ide a SProprietary Article Certificate ,PAC. alongwith indent( as per following format

PROPRIETAR< ARTICLE CERTIFICATE 3PAC4

,i. The re>uired item,s. ,i/e/UUUUUUUUUUV. isBare manufactured only %y

+Bs///////////////////////////////////////////////////////////////// and no other mae is accepta%le as

su%stitute for technical reasons/ ,VWherever specific model / brand is required, the same

should also be specified./

,ii. Appro#al of competent authority( as per item UUU//VV of 4P200H ,as amended from

time to time. has %een o%tained for purchasing the re>uired item,s. as a proprietary

article/ (** indicate relevant BDP item./

,iii. The Incharges of ++ and ?inance disciplines of the wor centers ha#e eamined and

cleared the proposal for purchasing the re>uired item,s. as a proprietary article/

,$ignature.

6ame and esignationUUUUU//

ate

Place

[Note The certificate should be sined b! the authorit! competent to approve the

Technical specifications", in accordance #ith the value of the purchase$%

?eatures of the model B #ersion of the products are regularly upgraded %y themanufacturers/ $imilarly( new products and new technologies are %eing introduced #eryfre>uently and the maret conditions are liely to #ary at different point of time/ Therefore(the appro#al for purchasing an item as proprietary article ,PAC. should %e o%tainedseparately on each occasion of its purchase/

The purchase of proprietary articles against the &roprietary Article %ertificate should bemade either from "riginal *9uipment Manufacturer or from Authorised3ealers43istributors4 tockists of "riginal *9uipment Manufacturer ?and not through a third

party


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It must be ensured that such items purchased against &A% are consumed within one yearfrom the date of receipt of the material.

c/ P,rc"ase o0 stan!-=y e+,ipment & accessories an! spares 0rom OEM

tand by e9uipment and accessories which form part of the main e9uipment, and are re9uiredfor ready replacement and which cannot be replaced with other makes on technical groundscan be purchased from "*M or authori+ed 3ealers43istributors4 tockists of "*M, as

proprietary article without &A% provided Indenter certifies that no other make or model canbe used as replacement on technical ground and competent authority approves the same inconsultation with MM.

pares for vehicles 4 machineries 4 tools 4 e9uipment, which are manufactured only by

particular firms and for which no substitutes are available are to be treated as proprietaryarticles. #o &A% would be necessary for procurement of such items. 1or carrying outsuch purchases, approval of competent authority as per powers delegated. owever, beforesubmitting the proposal to competent authority for approval, the same will be examined bythe In!charge of MM discipline of the respective work center. These items are to be procuredfrom "riginal *9uipment Manufacturers 4 Authorised 3ealers43istributors4 tockists of"riginal *9uipment Manufacturers.

For procurement of spares of proprietar( # non-proprietar( nature, the

following procedure will be followed)-

/ PETT< P(RC8ASES 8AN >(OTATIONS

Petty P,rc"ases

&urchase upto s. -,. at a time may be made without formal en9uiries or withoutobtaining hand 9uotations by Eser 3epartments themselves.

A statement of petty purchases made by the Eser 3epartments will be sent to theMaterials Management concerned at the end of each month so that taking into accountthe fre9uency of such purchases these may be considered for inclusion in the list of stockitems to avoid further piecemeal purchases.

&o '= will be raised for pett( purchases of consumable items upto s.

","""."" and such transactions need not be routed through concerned

Materials Management. 4lso no covering suppl( order need be issued for pett(

purchases of consumable items upto s. s. ","""."".


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$0 shall also not be re9uired for purchase of materials for special events like eminars,%onferences, training, meetings and sports events provided the items are to be consumedduring the same event and need not to be kept in stock .

Inspection o0 Non-Cons,ma=le Items

6o inspection through Nuality Assurance epartment for purchases of nonconsuma%le

items upto *s/10(000/00 will %e necessary/ 4ut( regularisation of transaction in such

cases will %e done against su%mission of prereceipted indent alongwith complete details of

the purchased item ,i/e/ copy of %ill etc. and acceptance of material %y the indentor( to

concerned +aterials +anagement ,stoc./

The re9uirement should be applicable only in cases $0s are created for value upto s.

-,4!, say for %apital items, for other cases as even $0s are not created, the item shallnot be inventorised at all and booked directly to expenditure head.

E/ P,rc"ase a5ainst 8an! >,otations

&urchase above s. -, but upto s. /6,. may be made either by Eser 3epartmentor by the &urchase 3epartment by obtaining at least three hand 9uotations. A list of

prominent and reliable local firms will be maintained by all concerned. and 9uotations willbe collected on rotation basis whenever there is scope for rotation. A certificate will be

given by the "fficer making such purchase that hand 9uotations were obtained on rotationbasis. The names and addresses of the firms from whom 9uotations are obtained will begiven in the certificate. 8here the number of dealers is limited i.e. less than six, rotationsystem need not apply.

Eser departments will not go for direct purchases over s. /6,. at a time barringoperational emergencies involving breakdown in operations. In operational emergencies theEser 3epartment may make direct purchases as per powers delegated in the Book of3elegated &owers.

P,rc"ase 0rom State Empori,m S,per :a7ar )o2t. eptt (n!ertakin5s

8henever items are available in tate *mporium 4 uper Ba+ar 4 tate $ovt. or %entral$ovt. Endertakings, purchases are to be made from them only and in those cases, there9uirement of obtaining three hand 9uotations will not be necessary.

F/ P(RC8ASE T8RO()8 ANN(AL RATE CONTRACTS


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1or items re9uired continuously throughout the year in large 9uantities, it may beadvantageous to have a rate contract on lines similar to those of the 3$H3. Thesecontracts will not be for longer than one year and will be finalised after inviting opentenders and after negotiations in consultation with finance.

Items for which annual rate contract should be concluded will be specified

and this list will be reviewed and additions made ever( (ear depending upon

the past consumption or on anticipated consumption. 4nnual rate contracts

will not be entered into in the case of items for which the market shows

marked downward trend. In order to provide against a fall in the market price

during the currenc( of the rate contract, the contract should include the

standard Fall Clause as in +'S0+ ate Contracts.

/ P(RC8ASE T8RO()8 :OAR OF OFFICERS

&urchase by a board of "fficers will be resorted to only in exceptional circumstanceswhen the materials 5 services 4 works are either re9uired urgently to overcome anemergency or because the indentor is not able to give firmed up 4 detailed specifications?necessitating on the spot decision based on the availability in the market< so that

procurement cannot be made under the normal purchase procedure, provided further that;

Prior appro#al of the Competent Purchase Authority( not %elow 91 eecuti#e( is o%tained

and furnished alongwith the Purchase Indent( %efore resorting to purchase through a

%oard of officers/

Competent $anctioning Authority not %elow 9e#el1 is empowered to constitute a 4oard of

Officers comprising ++ "ecuti#es ha#ing purchase power for #alue of 4oard Purchase and

an eecuti#e each of e>ui#alent le#el from indenting epartment and ?inance/ Proceedings

of such purchase %oards ,comprising of eecuti#es of competent le#el. will not need

appro#al of any authority( since spot decisions are re>uired

If for any reason it is not possi%le to constitute a purchase %oard with competent officers(

the %oard may %e constituted with an officer of the net %elow ran/ )owe#er( the

reasons should %e recorded in writing and the proceedings of such a purchase %oard

should %e got ratified %y the authority constituting the %oard/

The appro#al for resorting to purchase through a %oard of officers shall %e accorded after

ensuringthat the indentor has o%tained and rendered a nona#aila%ility certificate on

$T*EA in respect of the items ,other than crocery( cutlery( linen and items of

complimentaries. to %e purchased/


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The %oard of officers shall o%tain as many >uotations as possi%le so as to determine the

reasona%ility of rates/ In case the supplier,s. do not agree to gi#e the hand >uotations

this fact will %e recorded %y the %oard of officers in their proceedings/

EMER)ENC< P(RC8ASE

*mergency purchase ?including hiring of services on emergency


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Two 4id system will %e compulsory for all the tender #aluing more than *s lahs/

Ender Two Bid ystem the bidders will be asked to submit :Technical: and :%ommercial:bids separately in sealed cover duly superscribed and both the offers placed in one single

sealed cover, at a central place. 1or this purpose, suitable labels in different covers willbe provided with the bidding documents.

The technical %ids will %e opened first and scrutinised %y Tender Committee/

After the shortlisting of techno!commercially acceptable bidders, all such bidders will benotified ?by fastest mode like fax< of the date of opening of priced bids in public, allowinga period of not exceeding 6 working days, depending upon the urgency of re9uirement andlocation of bidders, so as to enable such bidders to participate in tender opening, if they so

like. 1or this purpose, identified fax is to be used, and the fax must be correctly programmedfor Tel. number and date 4 time stamp. This is to be ensured by MM member. The priced bidswill be opened by same Tender "pening "fficers who are already detailed for opening oftenders and the Tender %ommittee members.

&rice bids, which remain, unopened with "#$%, are to be returned to the concerned bidderswithin a period of 6 working days of receipt of &erformance $uarantee Bond ?s< from thesuccessful bidder ?sC along with cost

estimates and the financial sanctions. The Competent *urchase 4uthorit( willdecide the reuired t(pe of tender to be issued vi: 1i2 *ublic tender 1open tender2


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1ii2 9imited tender 1minimum ! parties2 and 1iii2 Single tender 1nomination,

based on delegated powers in this regard2. The Competent *urchase 4uthorit(

of the tender 1on recommendations of the Tender Committee2 will also approve

the technical and commercial terms and conditions in the following conte/t)

i2. Induction of latest and appropriate technolog(ii2. Competitiveness,iii2. 9essons # e/periences of the past tenders # contracts.

The Competent *urchase 4uthorit( will record the reasons for deviating, if an(,

from the normal tendering procedure.

Concerned +irector shall have full powers, including for the cases falling under

the powers of >*C.

;>Cs should be firm # standardi:ed. ;>C revision must be done onl( b(

e/ception, based on cogent and transparent 6ustification. ;>C in general

should have a e6ection 1both technical and commercial2 criteria, and

financial >valuation methodolog( 1including 9oading criteria2. In all cases,

the ;id >valuation Criteria 1;>C2 along with the Matri/ will be brought

before the Competent *urchase 4uthorit( for approval . 8herever the last

;>C approved b( >*C # C*4 is proposed to be used for the ne/t tender,

there is no need to obtain repeat approval of the ;>C 1apart from changes

that ma( be necessar( due to fresh guidelines issued b( *MC2.

uch cases falling under the power of *&% will be brought to it for approval after

endorsement of the concerned 3irector. who will consider the factors ?i


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authority< indicating as to why such departure is considered necessary. It will specifically be

indicated as to whether "#$% would entail any extra expenditure on account of the

proposed changes in B*% and if so, analysis will also need to be given indicating the

economic benefit in terms of improved efficiency or otherwise that would accrue to "#$%

versus the extra expenditure involved due to modification in B*%. After this no change in

B*% will be allowed. 8here no pre!bid conference has been convened, B*% in such cases

will not be modified under any circumstances.

*owers to approve modification # rela/ation # departure from approved

;>C will rest with Competent *urchase 4uthorit(. In this regard, +irector

concerned shall have full powers including in >*C level cases, provided,

such changes are not in conflict with the e/isting polic(# procedure# *MC

instructions.

Before invitation of tenders, the technical as well as commercial Bid *valuation %riteria willbe formulated by the tender committee.

The Bid *valuation %riteria so finalised will invariably be sent alongwith biddingdocument to all prospective bidders.

IN*ITATION OF TENERS

Coor!ination an! =,lkin5 o0 !eman!s 0or p,rpose o0 in2itin5 ten!ers

8hen dealing with indents, due attention should be paid to the combination

and bulking of demands which will result in econom( in purchase. +emands

for materials received simultaneousl( from different indentors should be

combined as far as possible while inviting tenders. +ue regard should,

however, be paid to deliver( instructions given b( the indentors. +emands

which cannot be suitabl( combined with others for this or an( other reasons

should be dealt with separatel(.

EN>(IR< RE)ISTER

>ver( individual section dealing with purchases will maintain an enuir(

register. 4 separate page for each enuir( will be allotted in that register.


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In case of limited enuiries, the name of the firms to whom the enuiries will be

addressed will be entered in that register. This will be signed b( the

concerned officer sending the enuir(.

TENER SETS TO :E @EPT REA< AN TENER INTIMATION TO :E

SENT TO PROSPECTI*E :IERS

4ll concerned sections dealing with open tenders before the( send tender

invitation to the press for advertisement will ensure that )-

a.

%.

the tender forms are complete in all respects and are ready for sale/ A%out

20 sets are to %e ept ready and all are to %e serially num%ered/

Tender intimations are sent to prospecti#e %idders as soon as the

information is recei#ed that the tender has %een ad#ertised/

S(:MISSION OF TENERS FOR P(:LICATION IN PRESS

In case of open tenders( for pu%lication of 6IT in press( a period of F days should %e

pro#ided from the date it is sent for ad#ertisement to the Corporate Communications/

;arious milestones of the tender ,such as starting date of sale( closing date of sale( last date

for receipt of >ueries( pre%id conference date( tender closingBopening date. should %e

specified in the 6IT( after taing into account the liely date of pu%lication of the 6IT/

TIME TO :E ALLO?E TO TENERERS TO >(OTE

Some special cases which should be seen and approved b( concerned 9evel-

e/ecutive, the following period will be allowed to bidders for submitting their bids

in %pen Tenders)

3escription ofActivity

Tenders without&re!bid conference

Tenders with pre bid conference

?i< Tender sale period. /-day

s

/- days

?ii< eceipt of 9ueries frombidders

R. D days

?iii< crutini+ing the 9ueries andholding pre bid conference

R. days


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?iv< Approval of &re!bid minutesand issue of the same

R. days

?v< ubmission of offers andopening of techno!commercial offers?TB"uirement of Oil Industry

Sl.

No.

Estimate! *al,e o0 ten!er Indigenous

&urchase

3in R,pees4

Import P,rc"ase

Ten!er Fee 0or

!omestic =i!!ers

3Rs.4

Tender fee for

foreign bidders

?EUuired to fill upthe %id data will %e designed o%8ecti#ely to co#er all technocommercial points of thetender re>uired for e#aluation and will %e ept as a part of tender documents( for the%idders to fill up the same and su%mit alongwith offers ,to facilitate O6GC filling up ofmatri during %idopening as otherwise( the opening officers will ha#e to search the#oluminous offers to locate the rele#ant %id details for ta%ulation./ 4idders should %eased to indicate their compliance %y clearly mentioning as Confirmed or 6otConfirmed( to a#oid any misinterpretation/ ?ormat for 4id matri should also ha#epro#isions for indicating the referenceBlocation of the respecti#e

detail,s.Bdocument,s. enclosed in the %id( so as to easily locate the same forta%ulation/

On opening( the data from the technical B technocommercial B commercial %ids are to %e

immediately ta%ulated and signed %y the Tender Opening Officers( in presence of the

interested %idders/ *especti#e dealing officersBdealing assistants shall assist the tender

opening officers in ta%ulating the details in the matri/ Immediately after tender opening(

offers will %e sent for technical comments and comparati#e statement will %e prepared as per

pro#isions/

Price %ids are to %e opened only for the >ualified %idders and data are to %e ta%ulated and

signed %y the Tender Opening Officers immediately( in presence of the interested %idders/

*especti#e dealing officersBdealing assistants shall assist the tender opening officers in

ta%ulating the details in the matri/ It should %e clarified in the +atri relating to the priced %id

opening that priced data reflected in the matri will %e as >uoted %y the %idders and su%8ect

to necessary correction %ased on detailed scrutiny of the priced %ids( e#aluation for loading

criteria etc/ The Comparati#e $tatement #etted %y ?inance will %e the %asis for taing the

decision for placement of purchase order B award of contract/

The officers opening the tenders should verify that only bidders 4 authorisedrepresentatives of bidders who have actually submitted the bids are present. Enauthorisedrepresentatives ?or representatives of firms who have not submitted the bid< should not beallowed to be present.

E-MAIL FA TELE TELE)RAP8IC OFFERS

T*(*V 4 1AV 4 Telegraphic "ffers will not be accepted. owever, in "*M purchases fromsingle source or where source of supply is pre!fixed, Telex 4 1ax 4 Telegraphic 4 *!Mail offers

may be considered provided such offers are followed by confirmatory copy within -6 days ofthe date of receipt of offer. owever, in case of purchase from "*M or their authori+ed


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3ealers43istributors4 tockists on single tender basis, if they do not submit confirmatorycopies even after persuasion then such *!mail4Telex41ax4Telegraphic offers may beconsidered with the approval of %&A under exceptional circumstances. 1or *&% level cases3irector concerned shall have full power to approve consideration of such *!mail4Telex41ax4Telegraphic offers.

CANCELLATION RE-IN*ITATION OF TENERS

Cancellation o0 ten!ers

A tender shall be deemed to have been cancelled to the extent a demand is withdrawn.Advice regarding the cancellation action shall be conveyed to the indentor.

%ancellation of tenders for any other reason, to be recorded in writing, shall re9uire theapproval of the purchase authority one step higher than the competent purchaseauthority. owever, in all such cases the 3irector of concerned Business $roup with theconcurrence of 3irector ?1inance< will be final authority6

Re-in2itation o0 ten!ers

In the event of re!invitation of bids whether on a limited or open tender basis the %ompetent&urchase Authority will obtain in advance the decision of the &urchase Authority onestep higher. In respect of proposals falling under the purview of *xecutive &urchase%ommittee, the decision for re!tendering will be taken by concerned 3irector inconsultation with %hairman!cum!Managing 3irector.

Such re-invitation of bids, on a limited basis, will be from all the bidders whouoted against the original tender.

imilarly, in the case of open tenders intimation regarding re!invitation of tenders will be sentto all the bidders who 9uoted against the original tender.

*easons for rein#itation of tenders in all such cases will %e recorded/


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ETENSION OF TENER CLOSIN) OPENIN) ATE

$ale of %id documents should close at least 5D wees %efore the date of opening of %ids

and %oth the dates should %e specified in the 6ITs B 4id ocuments/

"tension of date of closing B opening of %ids should %e a#oided as far as possi%le/

)owe#er( where it is inescapa%le ,#alid and 8ustified reasons for such etension should %e

recorded in writing.( the competent purchase authority will %e empowered for etension of

date of closing B opening of %ids( maimum upto two wees/ Officer one le#el a%o#e the

competent purchase authority will appro#e any etension %eyond two wees/ )owe#er( on

the %asis of TC recommendations( CPA shall ha#e powers to appro#e etension of date of

closing B opening of %ids upto D wees( as a conse>uence of interactions with prospecti#e

%idders during pre%id conference/ ?or "PC le#el cases( concerned irector will ha#e fullpowers to appro#e etension of closing B opening date of %ids/

*e>uests for etension of tender closing B opening date( recei#ed on the date specified for

the same( shall 6OT %e considered/

6o tender document will %e sold during the etension period/

CLA(SES IN TENERS S(PPL< ORERS

?arranty an! ),arantee

In the case of euipment, the warrant( for a period of B months from the date

of shipment or < months from the date of commissioning of the euipment,

whichever is earlier, will be obtained.

The warrant( period in case of turnke( pro6ects will be obtained for < monthsfrom the date of satisfactor( commissioning and handing over of the complete

pro6ect to the %&'C.

The ;ank 'uarantee for warrant( period in the case of euipment will not be

necessar(. The guarantee for warrant( in the case of Turnke( *ro6ect contracts

will be essential, insisted upon and failure to compl( with this will be a

re6ection criteria of the ;>C.


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?arranty Cla,se

The manufacturer warrants that ever(thing to be furnished hereunder shall

be free from all defects and faults in material workmanship and manufacture

and shall be of the highest grade and consistent with the established and

generall( accepted standards of the material of the t(pe ordered and in fullconformit( with the specifications, drawings or samples, if an(, and operable,

operate properl(. This warrant( shall survive inspection of the pa(ment for and

acceptance of the goods, but shall e/pire twelve months after their arrival at the

destination.

Penalty Li+,i!ate! ama5es Cancellation Cla,se

&o liuidated damages clause will be inserted in contracts # suppl( orders for

purchases upto s.."" lakh. Suppl( order as per ST-" will be placed forpurchases upto s. ."" lakhs which provides for cancellation clause. In case of

contracts # Suppl( %rders e/ceeding s.."" lakh, liuidated damages will be

applicable D E of the contract # suppl( order value 1 of total value of

particular item in case of casing pipes2 per week or part thereof for dela( in

supplies sub6ect to a ma/imum ceiling of ! of contract # suppl( order value

1" of the value of particular item in case of casing pipes2. In case of service

contract for a period of more than one (ear, the liuidated damages will be

levied on one (ear?s contract period value. In the case of Construction Turnke(

*ro6ect contracts, the liuidated damages will be applicable D E of contract

value per week or part thereof for dela( in completion of the pro6ect sub6ect to aceiling of " of total contract price.

Li+,i!ate! ama5es Fail,re an! Termination Cla,se

Proc,rement o0 5oo!s

Time and date of deliver( shall be essence of the contract. If the

contractor # supplier fails to deliver the stores or an( instalment thereof withinthe period fi/ed for such deliver( in the schedule or at an( time repudiates the

contract before the e/pir( of such period, the purchaser ma(, without pre6udice

to an( other right or remed(, available to him recover damages for breach of

the contract)-

*eco#er from the Contractor B $upplier as agreed li>uidated damages and not %y way

of penalty( a sum e>ui#alent to W L ,half percent. of contract price of the whole unit

,1L of total #alue of particular item in case of casing pipes. per wee for such delay or part

thereof ,this is an agreed( genuine preestimate of damages duly agreed %y the parties.which the contractor has failed to deli#er within the period fied for deli#ery in the


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schedule( where deli#ery thereof is accepted after epiry of the aforesaid period/ It may

%e noted that such reco#ery of li>uidated damages may %e upto L of the contract

Bsupply order price of whole unit of materials ,10L of the #alue of particular item in case of

casing pipes. which the contractor B supplier has failed to deli#er within the period fied for

deli#ery in the scheduleJ or

a. Cancel the contract B supply order or a portion thereof %y ser#ing prior noticeto the contractor B supplier/

%. It may further %e noted that clause ,a. a%o#e pro#ides for reco#ery ofli>uidated damages ,and not %y way of penalty. on the cost of contract B supplyorder price of delayed supplies ,whole unit. at the rate of W L ,half percent. ofthe contract B supply order price of whole unit ,1L of total #alue of particular itemin case of casing pipes. per wee for such delay or part thereof upto a ceiling of

L of contract B supply order price of delayed supplies ,whole unit. ,10L ofthe #alue of particular item in case of casing pipes./ 9i>uidated damages fordelay in supplies thus accrued will %e reco#ered %y the paying authoritiesof the purchaser specified in the supply order( from the %ill for payment ofthe cost of materials su%mitted %y the contractor B supplier or his foreignprincipal in accordance with the terms of supply order B contract or otherwise/

c. 6otwithstanding anything stated a%o#e( e>uipment and materials will %edeemed to ha#e %een deli#ered only when all its components and parts arealso deli#ered/ If certain components are not deli#ered in time( the e>uipmentand material will %e considered as delayed until such time all the

missing parts are also deli#ered/

Fall Cla,se 3Applica=le in case o0 Rate Contracts 0or in!i5eno,s p,rc"ases & its

non-acceptance /ill =e a reBection criteria4.

i/ The price charged for the materials supplied under the contract B supply order %y thecontractor B supplier shall in no e#ent eceed the lowest price at which thesupplier B contractor or his agent B principal B dealer( as the case may %e( sells the

materials or offer to sell materials of identical description to any persons Borganisations including the purchaser or any epartment of the Central Go#t/ or anyeptt/ of a $tate Go#t/ or any $tatutory 3ndertaing of the Central or $tate Go#t/(as the case may %e( during the currency of the contractBsupply order/

ii. If any time, during the said period the contractor 4 supplier or his agent 4 principal 4dealer, as the case may be, reduces the sale price, sells or offers to sell suchmaterials to any persons 4 organisations including the purchaser or any 3eptt. of%entral $ovt. or any 3eptt. of a tate $ovt. or any tatutory Endertaking of the%entral or tate $ovt. as the case may be, at a price lower than the pricechargeable under the contract 4 supply order, he shall forthwith notify such reduction

or sale or offer of sale to the &urchase Authority who has issued this upply "rderand the price payable under the upply "rder 4 %ontract for the materials supplied


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after the date of coming into force of such reduction or sale or offer of sale shallstand correspondingly reduced. The above stipulation will however not apply to ;

a. "ports %y the Contractor B $upplier or

%. $ale of goods as original e>uipment at prices lower than the prices charged fornominal replacement/

c. $ale of goods such as drugs which ha#e epiry dates/

iii. The Contractor B $upplier shall furnish the following certificate to the concerned

Paying Authority alongwith each %ill for payment for supplies made against this supplyorder B contract

!IB-e certify that there has %een no reduction in sale price of the materials of

description identical to the materials supplied to the O6GC under the contract B

supply order herein and such materials ha#e not %een offered B sold %y me B us to

any person B organisation including the purchaser or any eptt/ of Central Go#t/ or

any eptt/ of a $tate Go#t/ or any $tatutory undertaing of the Central or $tate

Go#t/( as the case may %e upto the date of %ill B during the currency of the supply

orderBcontract whiche#er is later( at a price lower than the price charged to theO6GC under the contract B supply order ecept for >uantity of materials categories

under su%clauses ,a.( ,%. ,c. of su% para ,ii. a%o#e details of which are as

follows

/

Inspection an! reBection o0 Materials =y Consi5nee 3s4

8hen materials are re6ected b( the consignee, the Materials Management

%fficer concerned will intimate to the contractor the details of such re6ected

stores, as well as the reasons for their re6ection and that the materials are

l(ing in the consigneeAs premises at the risk and cost of the contractor. 3e will

also call upon him either to remove the materials or to give instructions as to


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their disposal within da(s and in the case of dangerous, infested and

perishable stores within B hours, failing which the consignee will either return

the materials to the contractor freight to pa( or otherwise dispose them of at

the contractorAs risk and cost. The Materials Management %fficer will

also intimate to the Finance and 4ccounts %fficer concerned the uantit( of

the materials re6ected to enable him to recover the freight due at the full

public tariff rates from the contractor. The purchaser shall also be entitled to

recover handling and storage charges for the period, during which the re6ected

stores are not removed D ! of the value of materials for each month or part

of a month till the re6ected materials are finall( disposed off.

S,=lettin5 an! Assi5nment

The contractor shall not save with the previous consent in writing of the

*urchase 4uthorit( sublet, transfer or assign the contract or an( part thereofor interest therein or benefit or advantage thereof in an( manner whatsoever

provided nevertheless that an( such consent shall not relieve the

contractor from an( obligation, dut( or responsibilit( under the contract.

Earlier eli2ery

8hen contracts are placed at higher rates for the sake of earlier deliver(,

the clause as given below, enabling the %&'C to realise compensation for

the e/tra cost due to dela( in suppl( must be included therein)-

!It should %e noted that on your assurance of earlier deli#ery( this order

has %een placed on you in preference to the lowest accepta%le %id/ In case of

failure to complete supplies against this contract in terms thereof within the date

of the deli#ery specified herein( you would %e lia%le to pay to the O6GC the

difference %etween the contract rates and those of the lowest accepta%le %id

i/e/ *s////// per unit( notwithstanding the fact that the delay in supply may ha#e

%een caused %y force ma8eure/ This is without pre8udice to the right of the

O6GC to reco#er all other losses and damages resulting from delayed supplies(

including the right of cancellation!/

The following clause will in#aria%ly %e included in all in#itation for %ids

!It should %e noted that if a contract is placed on a higher %idder as a result of

this tender( in preference to the lowest accepta%le offer( in consideration of

an earlier deli#ery( the contractor will %e lia%le to pay the O6GC the difference%etween the contract rate and the rate >uoted %y the lowest accepta%le %idder in


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case he fails to complete the supply in terms of such contract within the date,s.

of deli#ery specified in the tender and incorporated in the contract/ This is without

pre8udice to other right under terms of contract!/

Pilot appro2al 3/"ere2er applica=le4

;efore commencing bulk suppl(, (ou would forward two sets of samples

supported b( two sets of (our manufacturing drawings for approval of the

Inspecting %fficer. Such an approval b( Inspecting %fficer ma( need at least !

da(s time, which should be catered for b( (ou within the deliver( schedule.

Inspecting %fficer would return to (ou one set of the samples and one set of (our

manufacturing drawings dul( sealed for (our guidance in bulk suppl(.

ou will make available free of charge all testing facilities in (our plant to the

Inspecting %fficer to enable him to test the sample and carr( out inspection.ou will arrange for an( test desired b( the Inspecting %fficer, at an( other

test house # laborator( as approved b( the Inspecting %fficer, if facilities for

such test are not available in (our plant. In the latter case, the test charges

would be reimbursed b( the purchaser if the samples are considered

acceptable, whereas if the samples are not found acceptable, the test charges

would be borne b( (ou.

:,lk Inspection 3/"ere2er applica=le4

The bulk shall be accepted in accordance with the samples approved. The Inspector shallbe given sufficient notice which shall not be less than /- working days to plan out thebulk inspection. &ercentage would be arranged by you on the same lines as in case ofthe pilot samples and the test charges would be dealt with accordingly.

ampling procedure will be as per the re9uirement of the Inspection Authority. Thematerials re'ected by the Inspection "fficer during this inspection will be replaced by youimmediately, latest within two weeks of such re'ection. Any re'ection by Inspecting "fficershall be considered final and binding on you.

EMAIL TELE)RAP8IC FA OFFERS

Tele/ # Telegraphic # Fa/ cop( of offers will not be accepted. 3owever, in

%>M purchases from single source or where source of suppl( is pre-fi/ed,

Tele/ # Fa/ # Telegraphic # >.Mail offers ma( be considered provided such offers

are followed b( confirmator( cop( within ! da(s of the date of receipt of offer.


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Ar=itration Cla,se

?or indigenous contracts upto *s/1/00 crore @$ole Ar%itration< clause will %e applica%le/

For indigenous contracts e/ceeding s.."" crores and for all Foreign Contracts

$Two 4rbitrators and %ne Gmpire$ clause will be applicable.

?or Pu%lic $ectors( the ar%itration clause as per Go#t/


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)eneral Con!itions

-hen the materials are dispatched to the consignee( intimation must also %e gi#en to this

effect to the purchasing authority and also to the consignee/ *eference to the supply order

should in#aria%ly %e gi#en in all rele#ant correspondence/

The ;id is liable to be re6ected in case the ;idder does not compl( with the

tender stipulations or the goods offered do not conform to the reuired

specifications indicated therein.

Any other terms and conditions( offered %y the firm and not included in this supply

order( are not accepta%le to the O6GC/

Comparati2e Statement

After all the >uotations ha#e %een opened( these will %e handed o#er to the section

concerned for maing comparati#e statement/

All the %ids recei#ed in respect of an en>uiry or ad#ertisement should %e ta%ulated in the

comparati#e statement ,in the standard from ,$T*15. prescri%ed for this purpose./ All

details re>uired will %e entered in the statement/ ?or the tenders in#ited under STwo %id

system( Comparati#e $tatement should %e prepared at each stage ,i/e/ after opening of

technocommercial %id and price%id. and duly #etted %y ?inance as per pro#isions/

"#ery section will ensure that the comparati#e statement is prepared within shortestpossi%le time( not eceeding 0D days of the receipt of the >uotations after techno

commercial %id opening and not eceeding 05 days after price %id opening/

The local 4ids which are recei#ed after the due date and hour are not to %e considered/

$imilarly( all >uotations dispatched %y the outside 4idders after the due dates are also

not to %e considered/ These will not %e entered in the comparati#e $tatement/


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The comparati#e statement will %e prepared and signed %y the concerned $tore

Xeeper B ealing Asstt /B ealing Officer/

At the technocommercial e#aluation stage( the comparati#e statement should %e

o%8ecti#ely prepared co#ering all the technocommercial points of the tender re>uired for

e#aluation/ Compliances and non compliances against all the re>uirements of 4"C and the

de#iations B eceptions ,if any. should %e clearly spelt out in the comparati#e statement/

At the price%id e#aluation stage( it should %e ensured that the rates mentioned in the

comparati#e statement are in one unit so that comparison can %e made at a glance/ The

final e#aluation prices for each %idder should %e wored out as per e#aluation criteria and to

%e ta%ulated in the Comparati#e $tatement( after taing into account all the charges B

statutory le#ies( which are to %e paid %y O6GC/

The comparati#e statement will %e checed and signed %y the officer of +aterials

+anagement as per monetary limits indicated %elow %efore the same is su%mitted with

details B due recommendations to Tender Committee B Competent Purchase Authority

Monetary *al,e O00icers

3pto *s/ F/ lahs +aterials +anagement Officer/ In case

comparati#e statement is prepared %y

the +aterials +anagement Officer( the

comparati#e statement should %e checed

at the le#el of $r/++ Officer/

A%o#e *s/ F/ lahs $r/ +/+/ Officer

to *s/5 lahs/

A%o#e *s/5 lahs y/+anager,++.

to *s/F lahs

A%o#e *s/F lahs +anager,++.


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The a%o#e chec will %e eercised %y respecti#e officers as far as possi%le/ In the e#ent

an officer of the re>uired le#el is not a#aila%le( an /Officer immediately net %elow le#el

would eercise the chec/

All comparati#e statements for tenders eceeding the #alue of *s/0(000B will %e referred

to ?inance for scrutiny/ The monetary limits of different le#els of ?inance and Accounts

Officers for checing the comparati#e statement will %e as under

i. 3pto *s/F/ lahs ?inance & Accounts Officer

ii. A%o#e *s/ F/ lahs $r/ ?&A Officer

to *s/5 lahs

iii. A%o#e *s/ 5 lahs y/+anager,?&A.

to *s/F lahs/

i#. A%o#e *s/F lahs +anager,?&A.

The a%o#e checs will %e eercised %y respecti#e officers as far as possi%le/ In the e#ent

of an officer at the re>uired le#el is not a#aila%le( an officer immediately net %elow le#el

would eercise the checs/

The comparati#e statement will %e checed %y the associated ?inance/ The comparati#e

statement will in#aria%ly %e #etted within shortest possi%le time( not eceeding 0D days of its

receipt in ?inance/ "ach page of the comparati#e statement will %e initialled %y %oth the

+aterials +anagement Officer and the ?inance & Accounts Officer as per a%o#e +onetary

limits/

The vetting of the comparative statement by 1inance will, however, not absolve the3epartment originally preparing the comparative statement from the responsibility.

In the cases where Tender Committee is re>uired to %e held( a copy of the Comparati#e

$tatement should %e made a#aila%le to the mem%ers of the Tender Committee at least D

hours %efore the first meeting of the committee alongwith a co#ering docet containing the

following information


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i. 6ame of the indenting department/

ii. "stimated ependiture/

iii. -hether ependiture sanction %y the Competent Authority has

%een accorded/

i#. )a#e normal tendering procedure as applica%le %een followedY If not(

%rief reasons thereof/

#. )as normal time %een allowed to the %idders for >uoting their ratesY If not(

reasons therefore/

)owe#er( for su%se>uent meetings of Tender Committee( copy of C$ and suchdetails are not re>uired to %e sent to TC mem%ers in ad#ance/

TEC8NICAL CLARIFICATION FROM :IERS AFTER TENER OPENIN)

4s a principle, clarifications from bidders after opening of tenders are to be

avoided in single bid s(stem and after price bid opening in two bid s(stem.

4t the techno-commercial bid evaluation stage 1under two bid s(stem2 also, post

tender clarifications should be avoided, as far as possible. In case implied

clarifications # confirmations e/ist in the bid on the issues involved, work center

ma( consider processing of the bid further on the basis of such implied

confirmations.

3owever, in case after opening of un-priced techno-commercial bids, if it is

observed that clarifications from the bidders on important techno-commercial

aspects are necessar( for enhancing competition in the tender, one opportunit(

shall be given to them for submission of

clarifications#confirmations#deficient documents. 8herever TC is reuired, it will

deliberate specificall( on the issues reuiring clarifications and submit their

recommendations to the C*4 for approval for asking the bidders to submit

clarifications# confirmations#deficient documents. Concerned He( >/ecutive

19evel I-4#;#C#+#>#F2 will have full powers to approve seeking of

clarifications#confirmations#deficient documents from the bidders even for cases

falling within the powers of +irectors and >*C.


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In %>M#%>C cases, bidder can be asked to withdraw the e/ceptions and

deviations taken b( them to %&'C?s standard terms and conditions b( the

dealing officer in MM after obtaining the approval of I#c MM directl( without

holding TC.

8ith a view to widen competition in the tender, decision would need to be taken

on case to case basis as to whether one more round of clarifications need to be

sought from the bidders. In that case, TC will deliberate specificall( on the issues

reuiring second round of clarifications# confirmations# deficient documents and

submit their recommendations to C*4 for approval for asking the bidders to

submit clarifications# confirmations#deficient documents after recording proper

6ustification for the same. 3owever, concerned He( >/ecutive 19evel I-

4#;#C#+#>#F2 shall have full powers to approve seeking of upto two rounds of

clarifications # confirmations # deficient documents, including in cases falling

within the powers of +irectors and >*C.

Clarifications should be sought from bidders, b( specif(ing a reasonable cut-off

time for submission of clarifications# confirmations# deficient documents.

Sufficient time should be given to the bidders to submit their responses

depending upon the nature of clarifications#confirmations#deficient documents

which are reuired to be submitted. 3owever, in the event of an unscheduled

holida( falling in the specified da( of the cut off time, the ne/t working da(

shall be treated as the cut off time?. In all other situations, if an e/tension forthe cut off time? is felt necessar( based on reuests receive from the bidder1s2,

approval should be obtained from C*4. For cases falling under the powers of

+irector#>*C, approval of concerned +irector shall be obtained. Such approval for

the same should be obtained before the e/pir( of the specified cut off time? and

the decision should be communicated to all the bidders from whom the

clarifications#conformations#deficient documents have been sought.

Clarifications#confirmations#deficient documents which are received after the

specified cut-off date should be considered onl( in e/ceptional situationsdepending upon merit of the case, where at least two clear T4#C4 offers are not

available, with the approval of the authorit( ne/t higher to the C*4, after

recording detailed 6ustification for considering such offers. For cases falling

under the powers of +irector#>*C, approval of concerned +irector shall be

obtained.

4n( technical clarifications#confirmations#deficient documents reuired b( the

Gser#Indenting +epartment should be routed through concerned Materials

Management.


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CORRESPONENCE ?IT8 S(PPLIERS :< INENTORS

4efore finalisation of the tender( all correspondence with the %idders must %e done %y

concerned +aterials +anagement/ )owe#er( after placing supply order B contract( if

considered necessary( the indentor,s. may interact with supplier,s. B contractor,s. for any

clarification pro#ided the same does not result into modification of any condition of supply

order B contract and does not in#ol#e financial implications/ )owe#er( copy of such

correspondence must %e mared to ++ epartment for record/

It must %e ensured that clarifications ased for %y the Indentor,s. did not ha#e any %earing

on the price aspect/

TEC8NICAL COMMENTS ON OFFERS

In all cases where technical e#aluation is in#ol#ed( the offers shall %e referred to the

indentor and its comments put up to tender committee/

F ,$e#en. days time will %e allowed to Indentor B 3ser to furnish the Technical Comments/ It

will %e ensured %y the 3ser eptt/ that comments are in#aria%ly furnished within specified

time/ Indentor B 3ser will %e fully responsi%le for the accepta%ility of the materials

recommended for purchase/ If their recommendations are at #ariance with the specifications

laid down in the %idding document( they will clearly specify and indicate the difference and

accepta%ility/

The Indentoruotations ,already

forwarded to the technical section.( in ad#ance from the technical angle %efore attending

the Tender Committee meeting/

Le2el 0or tec"nical comments on o00ers

In case of purchase of general nature of items such as bulbs, tubes and

stationer(, technical comments will not be necessar(. In other cases, technical

scrutin( and evaluation of offers will be done and comments thereon made

at the level at which the tender committee in the case is to be held.


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TENER COMMITTEE


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FORMATION OF TENER COMMITTEE AN ITS MONETAR< LIMITS

No Ten!er Committee /ill =e "el! 0or cases 2al,in5 ,pto Rs '.;; Lak"s. All proc,rement cases 3incl,!in5 0inali7ation

o0 Rate Contracts4 2al,in5 a=o2e Rs. '.;; Lak"s /ill =e re0erre! to Ten!er Committee. 8o/e2er TC is not re+,ire!

0or placement o0 in!i2i!,al or!ers a5ainst )S& an! ON)C rate contracts.

TC is also re+,ire! to =e "el! 0or carryin5 o,t price ne5otiations /it" =i!!ers in all cases irrespecti2e o0 t"e 2al,e o0

t"e case.

CON*ENIN) OF TENER COMMITTEE

The concerned +aterials +anagement will con#ene the tender committee/

:RIEF FOR AN LE*EL OF TENER COMMITTEE

Con.titution o0 Tender Committee+

T/e 0ollowing level. o0 '' 7 Finance o00icer. and indenting &e8tt6 ./all 0orm 8art

o0 t/e Tender Committee.+

Sl Acce8ting Aut/ority TC Level

" Level!$ or a9ove $n!c/arge '' 5 ead Central Purc/a.e under

C/ie0 '': $n!c/arge Finance and Level $$ o0

*.er &e8artment6

- $n!c/arge '' Second Level '' O00icer ;: Second Level

Finance O00icer; and O00icer o0 indenting de8t

o0 corre.8onding Level

4 Second Level ''

O00icer

'' O00icer E!< Level : Finance O00icer and

O00icer o0 indenting &e8t6 o0 corre.8onding

level


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< Ot/er '' Executive

=E!< 7 a9ove>6

'' O00icer E!4 Level: Finance O00icer and

O00icer o0 indenting de8t6 o0 corre.8onding

level6

Note;

?i< W econd level officer in MM and 1inance as designated at the work center

,ii. The le#el of TC and CPA will %e with reference to sanction #alue or tender

#alue whiche#er is higher/ )owe#er( after opening the price %ids( if the

e#aluated price of lowest %id B %ids is higher than the tender #alue and the

tender accepting power is not within the power of original CPA( then the CPA

and TC le#el will %e raised to appropriate higher le#el/

,iii. If the re>uired le#el of TC mem%er is not postedB not in station ,onlea#eBtour. at a wor centre then the TC mem%er will %e of the net lower le#el

a#aila%le and Bor as nominated %y the Tender accepting authority/ 9e#el7I shall

ha#e full powers in such cases/

,i#. In case of turney pro8ects where#er indentor is not end user and

re>uirement is for use within the wor centre then end user will also %e a

mem%er of tender committee/

,#. ?or itemsBser#ices under centralised procurement( officers posted in

Technical cell attached with the respecti#e setup for centralised procurement

shall carry out the Technical e#aluation and also can %e TC mem%ers as

representati#es of Indenting eptt/ )owe#er( due to technical compleity of the

itemBser#ice %eing procured( if Incharge of the Technical cell feels necessary(

he can put up the case to the respecti#e Chief of $er#icesBconcerned )ead of

the eptt/ for Technical comments and can also coopt a representati#e of the


73/76

concerned $er#ice as a mem%er of the TC with the appro#al of the respecti#e

Chief of $er#iceB)ead of the concerned eptt/

,#i. ?or all other itemsBser#ices also( TC will continue to ha#e only three

mem%ers/ -here#er Indenting department and 3ser department,s. are

different( depending on technical compleity of the itemBser#ice %eing procured(

Indenting epartment can coopt for ha#ing a representati#e from 3ser

department also in the TC/

,#ii. ?or O"+BO"$BPACB cases where tender #alue is upto L B 1L of the

open tender acceptance powers of 9e#el1 eecuti#e as per 4P item +PD ,a.(

TC shall %e held at the le#el of 2nd le#el ++ Officer B ++ Officer "D le#el

respecti#ely as stated at $l/ 6o/ 2B $l/ 6o/ 5 a%o#e/ In such cases( TC

recommendations shall %e put upto CPA ,9e#el1 eecuti#e. for appro#al

through IBc ++/

Tender Committees should in#aria%ly %e held when the same is scheduled/ In case any of

the TC mem%ers proceeds on lea#e B tour( he may authori:e in writing the net su%ordinatesenior most officer a#aila%le in station to attend the TC meetings during his a%sence and to

sign the TC proceedings/

The concerned dealing officer will prepare brief for perusal of all members of Tender%ommittee wherein complete details of case will be brought out. uch a brief, duly signed,will be given to members of Tender %ommittee well in advance of the meeting. This will,however, in no way, dilute the responsibilities of the tender committee.

E*AL(ATION OF :IS :< TENER COMMITTEE AN PREPERATION OF

TENER COMMITTEE PROCEEIN)S

Tender %ommittee will examine the bids to prepare its recommendations for submission tothe authority competent to accept the tender. 8here a higher bid is recommended, underexceptional circumstances ade9uate reasons in support of recommendation will be recorded.


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It will %e ensured %y all TC mem%ers that Tender Committee proceedings are signed

immediately on completion of the meeting( not eceeding 5 days from the date of the

meeting/

ACCEPTANCE OF RECOMMENATIONS OF TENER COMMITTEE

%ompetent &urchase Authority can either approve or disapprove the recommendations of T%or give written directives for reconsideration of its recommendations.

The Competent *urchase 4uthorit( will be empowered to accept unanimous #

ma6orit( recommendations of Tender Committee. 8hen the unanimous #

ma6orit( recommendations of the Tender Committee are not acceptable, or when

the recommendations are divided euall( 1in case of even number of members2,

the Competent *urchase 4uthorit( shall refer the case to the authorit( one step

higher but with his recommendations. The authorit( ne/t higher to the C*4 with

the concurrence of Finance at commensurate level, will be empowered to

take decision.

CAPTER !

Documents

Purchase Procedure and Lead Time of Ongc Final