Study of Tendering Process in S&T Department of...

1

Project Report on

Study of Tendering Process in S&T Department of N.E. Railway

Submitted by

Sri D.N. Tiwari Dy. CSTE/Works/NER

Facilitated by

Sri Ravij Seth FA & Sr. Professor (Finance & PPP)/IRITM/Lucknow

Administrative support by

Sri Kishor Mehta

CMI/IRITM/Lucknow

June 20, 2014

© Indian Railways Institute of Transport Management, Lucknow (Uttar Pradesh)

Page 1 of 23

STUDY

OF

TENDERING PROCESS

IN S&T DEPARTMENT

OF

N.E. RAILWAY

BY

D N TIWARI DY. CSTE/WORKS N. E. RAILWAY/GKP

INDIAN RAILWAY INSTITUTE OF TRANSPORT MANAGEMENT 20 JUNE, 2014

Page 2 of 23

ACKNOWLEDGEMENT

The course of Tender, Contracts, e-procurement and e-auction at IRITM, Lucknow

has certainly enhanced my knowledge and awareness towards this topic. My sincere thanks to

Sri Rajeev Seth, Sr. Professor (Finance & PPP) – Course Director and his whole team at

IRITM, Lucknow who were all very helpful during the course and had provided all the

material to me for bringing this report. My sincere thanks to Mr. A.K. Gupta, Dy. CSTE/

Con/West, NE Railway, Mr. Dinesh Chand, ASTE/Con/West, O.S. (Tender) Mr. R.C.

Srivastava at CSTE/Con. office who were of immense help to me in writing out this report.

My thanks to all the visiting faculty during the course who had certainly helped me in

understanding the subject in detail. My sincere thanks to Mr. S.K. Singh, Confdl. Asstt.

whose computer/internet expertise and assistance provided immense help to me.

Page 3 of 23

DECLARATION

"I declare that the Project Report on Study of Tendering Process in S&T Department

of N.E. Railway is submitted by me on completion of course on 20.06.2014 to the Indian

Railway Institute of Transport Management, Lucknow. My report may be used by Indian

Railways/IRITM for official purposes."

Date : Name : D. N. TIWARI

Place : Designation : Dy. CSTE/Works N. E. Railway, Gorakhpur.

Page 4 of 23

I N D E X

S. No.

Particulars Page No.

From To 1. Introduction 5 -

2. S & T System 5 6

3. S&T Policy 7 -

4. S&T Works 7 8

5. Tendering Process : 8 20

(a) Schedule of work & Tender document

(b) Tender Notice

(c) Essential of Tender

(d) Submission of Tender

(e) Opening of Tender

(f) Briefing Note

(g) Tender evaluation

(h) Conclusion

Page 5 of 23

STUDY OF TENDERING PROCESS IN S&T DEPARTMENTOF N.E. RAILWAY

INTRODUCTION :

Indian Railway is the largest in size in Asia and fourth largest in world. It has total

route Kilometre of over 65000 with 7500 station and runs 14000 passengers carrying train per

day facilitating travel of over 22 millions passengers every day. A workforce of 1.6 million

look after the railway operation – both passenger and goods in country.

The Indian Railway (IR), more than 150 years old, is one of the oldest railways in the

world. The Indian Railway plays an important role in social, political and economic life of

India. It is the principal mode of transport in country. The transport network of Indian

Railway has helped to integrate not only market but also people across the length and breadth

of country. Indian Railway directly contributes to the social and economic development of

nation and is considered as a barometer of growth. It is also biggest state – owned enterprise

of India and contributes 1.18% of Indian's Gross Domestic Product (GDP). Indian Railway is

handling high level of traffic and magnitude of traffic is continuously increasing and

changing. For this, Indian Railway has adopted many technological advancement in railway

system so as to provide quality and safe services.

Objective

Main objective of Indian Railway is to serve as a transportation system in

view of changing need of travel and transport in the country in a cost effective manner. S&T

department not only helps in safe running of train, it also helps in making use of costly assets

of P. way and rolling stock and locomotive in an effective manner to increase the productivity

of railway system as whole. Hence efficient functioning of S&T equipment plays a vital role

in overall railway operation

Signalling & Telecomm System :.

Indian Railway signalling and telecom system provides essential functions like train

control, safety in train operation, line capacity optimisation and real-time train information to

meet the increasing demand of traffic with enhanced safety , efficiency, and reliability in train

operations .S&T system in Indian Railways is modernized as illustrated below :-

Page 6 of 23

(1) Train Control : Introduction of new technology in train control is making

appreciable improvement in earlier mode of train control. This has not only enhanced

the efficiency and reliability of the system but also built confidence in train operation

The new technology tools are (a) LED Signal (b)PI/RRI/SSI(c)IPS(d)Data logger etc.

(2) Safety enhancement : Introduction of various new safety provision in train operation

is making appreciable improvement in the system. This has not only enhanced the

safety of the system but also eliminated human dependency in train operation The

new provisions are (a) Track circuiting at station (b) Axle counter (c) Last

vehicle check by Axle counter. (d) Auxiliary Working system (e) Safety Protection

of Level crossing gate etc.

(3) Line capacity optimisation by Signalling : Line capacity of section is improved with

introduction of modern S&T system, which caters for minimal operation time at the

station and provides maximum utilization of the track in between stations. Adopted

systems are –

a Double Line:

(i) Automatic signalling.

(ii) Twin Single line with automatic signals.

(iii) Intermediate Block hut.

b. Single Line:

(i) Token less Block System.

(ii) Automatic Block signalling.

(4) Real Time Train information : Train management system is being provided on

some section of Indian Railway. This is an effective system of regulating trains by

monitoring their movement and taking timely decision for diversion trains,

induction/withdrawal of rakes, planning of track etc. Access to the travelling public

through Internet to real-time information by train management system is being

provided.

Page 7 of 23

POLICY ON S&T WORKS :

Policy for S&T works is framed on the basis of Railway Board's instruction, Signal

engineering manual, Telecom engineering manual, RDSO's guidelines and Zonal Railways

instructions. Accordingly S&T works are planned and executed.

Railway Board's Policy: Railway Board is continuously issuing various instructions and

guidelines for incorporation of various technological advancement in Signal and Telecom

work .Accordingly Signal and Telecom work needs to be planned and executed. Policies and

instruction of Railway Board are sacrosanct and needs to be incorporated sincerely and

timely in S&T work.

MANUAL`s INSTRUCTION : S&T works are totally governed by Signal Engineering and

Telecom Manual. These manuals clearly provide rule, regulation and specific instruction for

S&T installation regarding installation and maintenance of S&T system, sub systems and

equipment. Provision of S&T manual will apply to all S&T work which is already in existing

or in progress or to be taken up in future.

RDSO's INSTRUCTION : RDSO issues instructions and guideline for S&T equipment for

efficient and reliable performance, which is required to be incorporated in S&T works. All

S&T equipments and materials is required to be purchased from RDSO approved firm for

which approved Vendor List is circulated by RDSO.

POLICY OF ZONAL RAILWAY : Zonal Railway issues detailed instructions and

guidelines for S&T equipment and its installation to supplement, where necessary, the policy,

rule, instruction issued by Railway board, Manual and RDSO to suit local circumstances of

the Railway. Various practices and procedures regarding execution of S&T works are also

issued by Zonal railway. In no case, instruction of Zonal railway would contravene any

policy and provisions of Railway board, manual and GR & SR.

SIGNALLING AND TELECOM WORK : The old age technologies, practices and system

is not meeting today's condition of heavy and fast flowing traffic and pave the way for

adopting many user friendly & financially justified modern S&T technologies and making

Indian Railway a safe and reliable mode of transport. To achieve the objective of Indian

Page 8 of 23

Railway, various type of signal & telecom work took place in process of modernisation of

system.

Modernization of S&T system are incorporated in new S&T works which are largely planned

on the basis of various sanctioned work such as :

(1) Construction of new line.

(2) Construction of gauge conversion.

(3) Doubling work.

(4) Up gradation of standard of interlocking.

(5) Change in signalling as a result of line capacity..

(6) Replacement of old asset on age cum condition basis.

(7) Modification of signalling as a result of change in yard lay out.

(8) Replacement of overhead alignment with OFC and Quad.

The execution of S&T works is a difficult task requiring considerable know-how, skill

and experience of railway system. Due to continuous technological advancement in S&T

system, S&T works and its execution is also requiring highly expert, experienced and skilled

team. Due to shortage of labour, staff, increase in number of work and to meet stiff target, it

will not be possible to handle large number of work simultaneously and expeditiously

without contract system. So, in S&T organization, all the S&T works are now being executed

through work contract in Railways.

TENDERING PROCESS IN S&T OF NE RAILWAY :

Generally large number of S&T works under various plan head is executed by S&T

unit of Construction organization of N.E. Railway. So, S&T/Construction unit performs all

the activities step-wise related with S&T work .As per policy of Construction organisation,

all S&T work contracts, irrespective of its value against open tender, are to be dealt by

DYCSTE concerned of their field . So the field unit of S&T/Con. unit is authorised to carry

out execution of work through work tender .Generally open tender is opted for work tender.

Page 9 of 23

A detailed study of works tender for installation, testing and commissioning of

complete work of Panel interlocking as per SIP including / supply of material in connection

with gauge conversion and New line work for past two years is undertaken to identify the

process and procedure involved in work tender.

Work commences with the sanction of detailed estimate for which allotment of

requisite fund has been made by competent authority and work is targeted for the year. The

execution of work is planned for which work tender is processed by the field unit

First of all, DYCSTE of concerned field unit and his official assess the item wise quantities

based on site survey, finalized site plan and store availability. Special care and adequate

attention is given by in charge of field unit to analyse the item and its quantities to restrict the

possibilities of any new item and appreciable variation in quantity during the course of

execution. As per policy of Board, store controlled items such as Signalling cable, Telecom

cable, Relay, IPS, LED Signal, Block instrument, Signal post, D G set etc are also taken

into consideration by field official so that Store controlled items may not be included in

Tender.

Schedule of work of Signalling tender is distributed in five groups as per construction

practices and casting of each group is done by field unit on the basis of individual assessment

of activities and their averaged LAR in the Schedule of complete work .Five groups are as

under;

1. Group A-I – Execution/installation with supply of IRON Steel foundry & forging

based components as per latest drawing and specification.

2. Group A-II – Copper/Lead based component supply and installation as per latest

drawing and specification.

3. Group A-III – Rubber/Plastic/other materials based components, supply, installation

in different activities as per latest drawing and specification.

4. Group A-IV – Drawing, design and miscellaneous material.

5. Group A-V – Digital component based materials – supply, installation etc. based on

latest drawing and specification

Page 10 of 23

Each group, as their name reflects, contain almost all similar signalling items,

activities and their justified rate along with their latest technical specification, drawing and

inspection detail. Rate of each activities in group is decided by averaging latest three LAR

of NE Rly if available .Otherwise, latest LAR of other railways are taken into consideration.

Schedule of works which is required to be quoted by tenderer, is prepared on the

basis of estimated cast of the group in which cast of each group serves as rate index of the

particular group .For this, railway provides basic rates and quantities of each activities of

work to tenderer so as to quote the group wise rate in percentage basis easily . Detail of

format of tender schedule is given as under:-

Page 11 of 23

ANNEXUREANNEXUREANNEXUREANNEXURE----1111 NAME OF WORK :- INSTALLATION, TESTING AND COMMISSIONING OF COMPLETE WORKS OF PANEL INTERLOCKING AT ---------------------------------------- SECTION AS PER SIP INCLUDING PART SUPPLY OF MATERIALS IN CONNECTION WITH GUAGE CONVERSION WORK IN ------------------------- DIVISION OF N.E.RAILWAY.

GROUP-A-I (EXECUTION/INSTALLATION WITH SUPPLY OF IRON & STEEL, FOUNDRY & FORGING BASED COMPONENTS.) ALL DRAWINGS/SPEC. WILL BE AS PER LATEST. (Approx Value - Rs. --------------------- )

Rates Quoted are _______% (in figure) _______ % (in words) above/below on Group A-I.

GROUP-A-II (COPPER / LEAD BASED COMPONENTS, SUPPLY & INSTALLATION ETC.) ALL DRAWINGS/SPEC. WILL BE AS PER LATEST. (Approx Value - Rs. --------------------- )

Rates Quoted are _______% (in figure) ________% (in words) above/below on Group A-II.

GROUP-A-III (RUBBER / PLASTIC / OTHER MATERIALS BASED COMPONENTS SUPPLY, INSTALLATION IN DIFFERENT ACTIVITIES.) ALL DRAWINGS/SPEC. WILL BE AS PER LATEST. (Approx Value - Rs. --------------------- )

Rates Quoted are _______% (in figure) ________% (in words) above/below on Group A-III.

GROUP-A-IV (DESIGN, DRAWING & MISC MATERIALS.) (Approx Value - Rs. -------------------- )

Rates Quoted are _______% (in figure) _______ % (in words) above/below on Group A-IV.

GROUP-A-V (DIGITAL COMPONENT BASED MATERIALS, SUPPLY, INSTALLATION ETC.) ALL DRAWINGS/SPEC. WILL BE AS PER LATEST. (Approx Value - Rs. ------------------------- )

Rates Quoted are _______% (in figure) ________% (in words) above/below on Group A-V.

GENERAL REBATE IF ANY

General Rebate (if any) on all the above Schedule/Annexure % (in figure) % (in words).

NOTE:- (i) REBATE (BOTH IN FIGURE AND WORDS) IF ANY TO BE WRITTEN ON THIS PAGE ONLY NOT IN THE COVERING LETTER.

(ii) PLEASE NOTE ITEMWISE RATES FOR DIFFERENT SCHEDULES WILL NOT BE ACCEPTABLE AND THE TENDER WILL BE SUMMARILY REJECTED IF ITEMWISE RATES ARE QUOTED.

(iii) IT IS TO BE NOTED THAT SUCH REBATE IF OFFERED, SHALL APPLY ON THE RATES QUOTED FOR ALL THE ITEMS IN ALL THE GROUPS OF THE SCHEDULE OF WORK OF TENDER DOCUMENT. SUCH A REBATE SHALL BE TOTALLY UNCONDITIONAL.

(iv) IN CASE A TENDERER DOES NOT WISH TO GIVE ANY REBATE, HE SHOULD WRITE "NIL' (IN RATE INDEX AT ANNEXURE-I). IN CASE NOTHING HAS BEEN FILLED IN BY THE TENDERER, IT WILL BE TREATED AS "NIL" AND SHALL BE SO RECORDED IN THE BLANKS AT THE TIME OF OPENING OF TENDER BY THE OFFICIALS OPENING OF THE TENDERS.

(v) IF ANY TENDERER GIVES ANY TYPE OF CONDITIONAL REBATE, SUCH REBATE SHALL NOT BE CONSIDERED FOR EVALUATION OF THE TENDER.

(vi) THE TENDERER SHOULD STRIKE OUT EITHER "ABOVE" OR "BELOW" WHICH EVER IS NOT APPICABLE, OTHER WISE RATE WILL BE CONSIDERED AS "ABOVE" FOR ALL PURPOSE CONNECTED WITH THIS TENDER.

Page 12 of 23

A proposal for inviting Open tender, is sent to CSTE/Con( competent authority) by

DYCSTE concerned for approval after finalisation of tender schedule and casting of works,

mentioning therein the Name of work, PB No, Sanctioned memorandum of detail estimate

and casting of work as per schedule and approval is obtained. Tender document is prepared

and made ready for on ward action.

Thereafter, a note is prepared for CAO/Con's perusal before uploading the tender document

to website and publishing the tender notice to newspaper. This note contains full detail of

work, such as Name of work, PB No., Sanctioned Memorandum of Detailed estimate, Fund

availability, Tender opening date etc. This perusal is a type of local approval of the budget

controlling authority so as to regulate the work according to available fund and target.

The tender document of is uploaded at NE Railway website

http://www.ner/indianrailways/gov/in and Government of India tender portal

http://www.tender.gov.in through nominated official of CSTE/Con. The tender document is

required to be uploaded on net at 3 to 4 days advance of minimum tender notice period (ie.1

month). After this, tender notice is given to CPRO for all local & National newspaper for

wide publicity.

Tender Notice:

Tender notice contains all important details, such as description of work, cost of

tender form, earnest money, approximate estimated cost of work, completion period. Date

and location of receipt and opening of tender, Purchase detail, submission detail, official

website etc. Tender notice is published and advertised in bilingual form. Minimum tender

period of one month is evaluated from the date of publication of tender notice in Newspaper.

Availability of Tender document

The tender documents are issued from the office of CSTE/Con on disposition of

requisite cost of tender form. The tender document can be purchased up to 1 day before the

opening of tender at1300hrs. The tender document can also be downloaded from official

website of NE Rly and Government of India. The tender can be submitted on downloaded

format along with the cost of tender in form of Bank draft by nationalized bank in favour of

FA&CAO/Con., N.E. Railway. Tender without Tender fees is rejected.

Page 13 of 23

Essential of Tender :

1 Cost of Tender document :

The cost of Tender document is based on the estimated cost of work decided by

board. It is given as per latest instructions as under :-

S.No. Tender value Cost of Tender

document 1. Above Rs. 10 Lakh upto Rs. 50 Lakh each Rs. 500/- 2. Above Rs. 50 Lakh upto Rs. 2 Crore each Rs. 1,500/- 3. Above Rs. 2 Crore upto Rs. 25 Crores each Rs. 2,500/- 4. Above Rs. 25 Crores upto Rs. 50 Crores each Rs. 5,000/- 5. Rs. 50 Crores and above Rs. 10,000/-

2. Eligibility Criteria -

Eligibility Criteria for Signalling work in case of Open tender casting above Rs. 50

Lac is framed on basis of Railway Board policies which is sacrosanctly adhered by

field unit .

(a). The Tenderer is required to fulfil following eligibility criteria:

(i) Tenderer should have completed at least one similar single work for a minimum value

of 35% of advertised tender value of work in last three financial year (i.e. current year

and three previous financial year).

(ii) Total contract amount received by tenderer during last three financial year and in the

current financial year as per payment certificate from tenderer duly issued by the

officer of concerned Government deptt should be minimum of 150% of advertised

tender value of work.

(b). For this, Similar Nature of work for Signalling work is defined by CSTE/Con of

NE,Rly

3. Earnest Money Deposit :

The amount of earnest money is required to be deposited along with tender by

tenderer as initial security and given as under:-

(a) For Work estimated to cost up to Rs. 1 Crore : EMD is 2% of the estimated cost of

work.

(b) For work estimated to cost more than Rs. 1 Crore : EMD is Rs. 2 Lakhs + 0.5% the

excess estimated cost of work beyond Rs. 1 Crore subject to maximum of Rs. 1 Crore.

(c) Earnest money is required to be deposited in following forms :

Page 14 of 23

(i) Cash deposited with Divisional Pay Cashier, Construction, NE Railway, Gorakhpur.

A copy of Money receipt attached with tender.

(ii) Deposit Receipts – FDR/TDR of Nationalized/Scheduled Bank pledge in favour of

FA&CAO/Con.

(iii) 1. Demand Drafts .2 Pay order 3. Banker's Cheque.

4 Security Deposit :

(a). The earnest money deposited by successful tenderer with his tender will be

retained by Railway as part of the security for the due and faithful fulfilment of the

contract by the Contractor

(b). Security deposit for the work should be 5% of contract value .Earnest money

deposit is adjusted in security deposit and the balance amount over and above amount

of earnest money may be deposited by cash or may be recovered from the contractor's

bill at rate of 10% of bill amount till full security deposit is recovered.

5 Performance Guarantee (PG)

The successful bidder is required to submit the Performance Guarantee (PG)

amounting to 5% of the contract value in forms of cash deposit or Pay Orders or

Demand Drafts or Guarantee Bonds of any of the Nationalized Banks. Detail of

Irrevocable Bank Guarantee are described in tender document,

6. Technical specification of Supply

Technical data and specification of all signalling item supplied are mentioned

in separate annexure(Annex-2). Signalling item shall be procured from RDSO

approved firm only followed by RDSO`s inspection or RITES`s inspection or

consignees inspection as per existing norms and instructions

7. Technical specification of work

Technical data and specification of all signalling work are mentioned in

separate annexure (Annex-3).Accordingly all Signalling work is to be executed.

8. Drawing for work

All General and detailed drawings pertaining to the work will be issued by the

CSTE/Con/ N. E. Railway or his representative (from time to time) with all changes .

Page 15 of 23

9 9 9 9 Inspection and testing of materials :- (a) All Mechanical Signalling items will be inspected by RITES/ Consignee. (b) 15no identified critical safety items will be inspected by RDSO irrespective of value as

per the existing policy. RDSO will inspect only such S&T items the value of which is

more than Rs. One lac and below Rs one lac it may be got done by RITES, subject to

supplies being from sources approved

10. Regulation of tender

General condition of contract (G.C.C. 1999) issued by the North Eastern

Railway up to date with correction slips, special condition of contract, Indian Railways

Signal Engineering / Telecommunication Manual and up to date with correction slips

and Schedule of dimension for BG&MG shall apply for work.

11. Mode of payment:

(a) 90% payment shall be made against the cost of the supply of materials of the schedule

of work.

(b) 90% of the charges for execution of work shall be paid on its completion duly

verified by the Railway representative.

(c) 10% payment against the charges for the material and 10% against the execution of

Work will be paid to the contractor after the completion, testing and commissioning of

the entire work at the station.

(d) Price quoted should be generally firm. No prices variation clause shall be

applicable.

12. 12. 12. 12. WarrantyWarrantyWarrantyWarranty:

(a) The contractor shall guarantee satisfactory working of the entire installation

with all its equipment erected by them for a period of 12 months from the date of

commissioning of the work.

(b) During the period of warranty the contractor shall remain responsible to

arrange replacement of unworkable defective material manufacture or design.

Page 16 of 23

Submission of Tender document :

Tender document is required to be submitted properly. Precautions are to

be observed by tenderers while submitting the tender is as under:-

1. The tenderers are required to quote his percentage rates of the various groups as per rate

index in numerical as well as in words

2. Tenderers are required to quote his rate in % above or below, whichever is applicable.

Failing this, rates will be considered as above.

3. Any alteration and erasures in tender document are liable to be rejected.

4. Tender must be accompanied by earnest money, otherwise it will be rejected.

5. All documents to be submitted in connection with the tender will be in English and in

ink.

6. All prices are required to be expressed both in figures and words. The rates quoted in

words will prevail, if there is variation in rates quoted in figures.

7. The tender is required to be enclosed in sealed cover super scribed work contract the

name of work and sent by Registered Post to address of CSTE/C/NER GKP so as to

reach his office not later than 14.30 Hrs. of date of opening of tender and deposited

before the above time and date.

Opening of Tender:

Opening of Tender Box

The tender box is scheduled to be opened at 13.00 Hrs. of one day before the opening

of tender at three places (i.e. office of CAO/C GKP, DYCSTE/C/LJN, DYCSTE/C/BSB) for

submission of the sealed tender along with the closing of selling of tender document at

CSTE/Con. Office at the same time. The same tender box will be sealed at 14.30 Hrs. next

day, i.e. before the opening of tender at 15.00 Hrs.

Tender are opened at the 1500 hrs on specified date at the office of CAO/Con NER

at GKP, DYCSTE/Con/LJN NER at LJN and DY CSTE/Con/BSB NER at BSB by

nominated officer (DSTE/ASTE) in presence of an Accounts Department's representative and

intending tenderer.

Page 17 of 23

Tender Register :

Particulars of tender received is noted in register which includes following information:-

1. Serial No 2. Date of opening 3. Name of work and tender No 4. Name of tenderer

5. Rates quoted. 6. Whether earnest money paid 7. Special condition, if any.

The tender register also includes detail of delayed and late tender with suitable

remarks. This register is signed by the nominated officer of Executive, Accounts and

Security.

Action to be taken by tender opening officer :

The officer who opens the tenders and the accounts representative witnessing tender

opening ensure that –

1. Initial (with date) the cover containing the tender, front cover page of tender, attached

certificate/document and every page of tender on which rates or special conditions are

quoted.

2. Initial (with date) all correction in the Schedule of Quantities, Schedule of material to

be issued and specifications and other essential part of the contract document.

3. Mark and initial all overwriting made by tenderers in Red ink. The corrections,

overwriting and omissions are serially numbered.

4. Clearly indicate on each page of schedule attached to the tender, any ambiguities in

rates quoted by tenderer in words or figures.

5. While opening the tenders, no opportunity is given to any tenderer to amend or

explain the rate and or any condition quoted in tender.

6. A suitable remarks in regard to delayed and late tenders is made both in the tender

register as well as in comparative statement.

7. A comparative statement of rates and other important tender conditions is prepared

and verified by the Accounts department along with signature.

8. It is ensured that all tenders received are tabulated in Comparative statement and put

up to a tender committee without any screening by any other official.

Briefing Notes for Tender Committee :

There is a standard format of briefing note in construction organisation and all the

requisite information’s regarding submitted tender are required to be produced in briefing

note by field official., Briefing note along with one tabulation statement is submitted clearly

indicating the following :-

Page 18 of 23

1 Complete detail of tender& its publicity, tender committee, tender form, plan &

drawing, sanctioned estimate, available fund, tenderer & tendered rates, credentials,

etc

2. Complete and latest information with regard to the lowest contract rate for the same or

similar work for the particular area and condition of undertaking the work.

3 The latest data in regard to the availability of material and prices thereof and working

condition etc. so as to correlate the present tender with those obtained earlier.

4 Any special condition attached to rate and work in regard to same or similar work as

well as technical data required for dealing with tender.

5 The basis for approximate quantities in tender schedule.

6 Any other relevant information worthy of consideration in the contract.

The official who prepares and checks the briefing note is required to sign on each

page and put up for scrutiny .Briefing note is scrutinized by DSTE and DYCSTE of field unit

and signed by them. Thereafter, comparative statement, briefing note and complete tender

papers along with original tender are sent to Accounts deptt. for vetting of briefing note. The

tabulation statement and briefing note are completely verified by Accounts deptt with original

tender and briefing note is vetted. If any remarks furnished by Accounts department as a

result of the prior scrutiny of tender, It is required to be resolved immediately by field unit so

as to ensure vetting of briefing note before tender committee meeting

Tender Evaluation

Tender committee

Tender committee play a vital role in deciding on action on tenders for execution of

works. TC is constituted by competent authority to accept the tender where the tender value

involved is more than Rs 25,000.Tender committee is constituted by CSTE/Con who is the

competent authority for accepting the tender. Tender committee consists of three member

committee of whom convener member (S&T) and third member (Engg .Deptt.) shall not be

below the rank JA Grade as per policy guide line of constructions. However, Finance

member will as per existing delegation of power.

All the document attached with Tender such as tender fee, EMD, Credential, financial

capacity, Partnership deed and income tax deduction (Form16A) are to be verified officially

from issuing authority by DY CSTE concerned so that tender evaluation may be correct.

Page 19 of 23

After vetting of briefing note and verification of document submitted with tender,

the convener member of TC has to fix date in consultation with other member for holding

meeting for a joint and through discussion of offers received. The TC is required to examine

and analyse the credentials, financial capacity, and capability, past performance, technical

competency, reasonableness and workability of rates for various offers in detail and arrive

their recommendations with justification. The minutes is drafted by convener member at the

earliest and sent to other member for their approval and signature. Any signified changes in

minutes are required to be done jointly. The recommendation of TC shall be put up directly

to accepting authority for acceptance. The acceptance or rejection of tender is the discretions

of competent authority empowered to do so. The reasons for departing from recommendation

of the TC should be recorded by competent authority. If Tender committee recommends

negotiation for rates of some item with lowest offer (L1) and recommendation is accepted by

authority, the fresh TC meeting shall be organised. For this, lowest tenderer is required to

quote negotiated rate in schedule of work before TC which is duly signed by tenderer and TC

member .A fresh minutes shall be drafted by convener and put-up for approval and signature

of other member. The recommendation of TC shall be put up directly to accepting authority

for acceptance after approval of TC member.

Letter of acceptance

The tenderer whose tender is accepted by accepting authority is communicated

through letter of acceptance by DYCSTE/con as per delegation of power. It is a type of

work order to start the work within 7 days of the issue of this letter Otherwise. It shall

constitute a breach of the agreement effected by the acceptance of the tender and earnest

money shall be forfeited by the Railway. It also provides intimation to tenderer for

execution of contract agreement.

Contract Agreement

The tenderer is required to present in person at the office of the C.S.T E/Con, N E

Railway, Gorakhpur to execute the contract agreements within15days after receipt of notice

issued. The Performance Guarantee shall be submitted by the successful bidder within 30days

after the issuance of Letter of Acceptance (LOA) but this time limit may be extended up to

60days with imposition of penal interest of 15%per annum beyond 30days . This P.G. shall

Page 20 of 23

be initially valid up to the stipulated date of completion plus 60 days beyond that. The

successful tenderer will submit a declaration duly signed by notary on non judicial stamp

paper of 100Rs that the non-judicial stamp paper of any amount will be submitted by us and

when required by railway .

The contract agreement is executed after verification of PG and the same is sent to

account dept for vetting

CONCLUSION :

From the in depth study and analysis of Signalling tender of Gauge conversion and

New line work of NE Railway ,it is observed that the cost of work are prepared realistically

based on site survey ,duly finalized plan and drawing, properly defined specification and

taking into account of averaged LAR, so as to eliminate any scope of speculation. Further, it

is seen that the tender notice is given maximum publicity well in advance of stipulated period

through National and Local daily newspapers and also on official website in order to generate

adequate competition. The scrutiny and evaluation of tender shows that credential, financial

capacity, capability, past performance and workability of the rate has been examined in

detail. Thus it is clear that the extant provision of tendering process has been meticulously

followed .Accordingly, tender is accepted and contract awarded.

Page 21 of 23 BIBLIOGRAPHY

Unified Schedule of Power - 2012 CORRECTION SLIP NO. 10

S. No. Value of tender Tender inviting authority

Tender opening committee Member of tender committee Tender accepting authority Contract signing

authority 1 2 3 4 5 6 7

1.(A) Above Rs.25,000/- and upto Rs. 20

lakh

Sr. Scale Officer

1. Asstt. Scale Officer of the tender inviting deptt.

1. Sr. Scale Officer of tender inviting deptt.

Headquarter – SG/JAG Division : SG/JAG

Sr. Scale officer

2. Section Officer/Sr. Section Officer of Accounts deptt.

2. AAO/AO/AFA/ADFM**

1.(B) Above Rs. 20 lakh and upto Rs. 30

Lakh

Sr. Scale officer




Sr. Scale officer


2. Sr. Scale officer of other deptt. dealing with tender.

3. AAO/AO/AFA/ADFM 2. Above Rs. 30 lakh

and upto Rs. 3 Crores

Sr. Scale Officer




Sr. Scale officer


2. Sr. Scale officer of other deptt. dealing with tender.

3. Sr. AFA/DFM 3.(A) Above Rs. 3 Crore

and upto Rs. 4.5 Crore

JAG 1. Asstt. Scale Officer of the tender inviting deptt.

1. Jr. Adm. Officer of Tender inviting deptt.

ADRM JAG


2. Jr. Adm. Officer of other deptt. dealing with tender.

3. Jr. Adm. officer of Finance 3.(B) Above Rs. 4.5

Crore and upto Rs. 12 Crores



DRM JAG



3. Jr. Adm. officer of Finance 4. Above Rs. 3 crores

and upto Rs. 12 crores



SAG(Headquarter)/ SAG(Con)

JAG



3. Jr. Adm. officer of Finance

Page 22 of 23

5. Above Rs. 12 crore and upto Rs. 75

crore

SAG 1. Asstt. Scale Officer of the tender inviting deptt.

1. SAG Officer of tender inviting deptt. HAG/ CAO/Con in HAG

SAG


2. SAG officer of other deptt. dealing with tender.

3. SAG officer of Finance deptt. 6. Above Rs. 75 crore

and upto Rs.150 crore

PHOD/ CHOD


1. PHOD/CHOD officer of tender inviting deptt.

GM SAG


2. PHOD/CHOD officer of other deptt. dealing with tender.

3. SAG officer of Finance deptt. Where the department is not headed by PHOD rank officer in HAG, the power of acceptance of works shall be as under***

7. Above Rs. 12 crore and upto Rs. 50

crore

CHOD in the rank of

SAG


1. SAG Officer of tender inviting deptt. CHOD/ CAO(Con) in SAG

SAG



3. SAG officer of Finance deptt. 8. Above Rs.50 crore

and upto Rs. 75 crore

CHOD in the rank of

SAG


1. SAG Officer of tender inviting deptt. AGM will be the accepting authority and where no AGM is posted, such tenders shall also be accepted by GM in addition to those tenders in the value range of Rs. 75 Cr to Rs. 150 Cr

SAG



3. SAG officer of Finance deptt. Note : 1. In Deptt. (Convening or others) where no Sr. Scale officer is available, JAG officer may be member of TCM. In that

case accepting authority will be DRM/ADRM/SAG. 2. For S. No. 1 and 2 above in cases where tender inviting officer is JAG (due to non-availability of Sr. Scale officer)

and same officer happens to be convening member of T.C. the other mamber of T.C. will remain unchanged and in such cases, tender accepting authority will be ADRM/SAG.

3. In Divisions, where DFM's post is not available, ADFM will be finance member for item No. 02. 4. In Division where Sr. DFM post is not available and DFM is having independent charge, DFM will be finance

member of T.C. for item No. 3 & 4. * Railway Bd's letter No. 2007/CE-I/CT/13 dated 28.08.2013. *** Railway Bd's letter No. 2007/CE-I/CT/13(i) dated 26.11.2013. ** Railway Bd's letter No. 2007/CE-I/CT/18 dated 07.08.2008. This issues with concurrence of FA&CAO and have the approval of General Manager.

Page 23 of 23

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