BY K R M RAO DGM CONTRACTS & PROCUREMENT GAIL- PATA DATE: - - PowerPoint PPT Presentation

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HEALTH MONITORING – BIDDING & CONTRACT MANAGEMENT

BY K R M RAO DGM CONTRACTS & PROCUREMENT GAIL- PATA

DATE: 02.12.2015

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PUBLICPROCUREMENT

LIMITATIONS

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BUYING BY PUBLIC UNDERTAKINGS

 High lead time  Complicated and lengthy outmoded procedures  Delayed decision making  Inability to appreciate user’s difficulties  Irrelevance of negotiations for deriving maximum

commercial advantage

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BUYING BY PUBLIC UNDERTAKINGS

 Absence of flexibility to take advantage of market

conditions

 Paying for inefficiencies of MSE and other preferred

sectors by giving price preference

 Award on lowest price basis  Decision makers play safe due to vigilance and public

accountability

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NECESSITY OF TENDERING

 Right price  Equal opportunity to all  Transparency  Sophisticated/state of art emerging technologies  Requirement of lending agency (i.e. World

bank/ ADB)

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C&P

C&P PROCEDURE MANUAL CVC GUIDELINES STORE PROCEDURE MANUAL DELEGATION OF POWER

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CONTRACT MANAGEMENT PRE-AWARD CONTRACT MANAGEMENT POST-AWARD CONTRACT MANAGEMENT

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PRE AWARD CONTRACT MANAGEMENT

 Preparation of tender document  Issuance of tender  Opening of tender  Evaluation of bids  Finalisation of order

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POST AWARD CONTRACT MANAGEMENT

 Receipt of un-conditional order acceptance  Receipt of CPBG  Signing of Contract Agreement  Expediting/Follow-up  Monitoring of Execution/ Performance Inspection and

measurements of payments

 Closure of contract

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CONTD.

 Hand quotation for petty orders not costing more than Rs.

100000/-

 Purchase by Board of officers  Annual rate contracts  Purchase from Government agencies  Emergency purchase  Petty purchase up to Rs. 75000/-

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MODE OF

TENDERING IN GAIL

• Purchase through DGS&D
• Open domestic tenders
• Limited domestic tender
• Open International Competitive Bidding (ICB)
• Limited ICB
• Purchase on single tender

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FORMS OF TENDERING SINGLE BID SYSTEM TWO BID SYSTEM

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SINGLE BID SYSTEM

 FIRM SPECIFICATIONS  FIRM QUANTITIES  FIRM TENDER CONDITIONS  TECHNO-COMMERCIAL BIDS AND PRICES ARE

RECEIVED AND OPENED SIMULTANEOUSLY

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TWO BID SYSTEM



Purchase of capital items of complex and sophisticated nature



No detailed and or accurate standardized specifications are available



Costly and critical items



Service contracts where the scope/specifications are not clear

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TENDERING UNDER TWO BID SYSTEM



Bidders are asked to submit

• Unpriced bid (Part-I) - containing technical

and commercial proposals but without prices

• Price bid (Part-II) - containing only prices

quoted in requisite formats

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PROCESS OF TENDERING

 Firming up of requirement  Fixing bid evaluation criteria  Fixing loading criteria (technical/commercial)  Invitation of bids  Receipt of bids  Evaluation of bids

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PROCESS OF TENDERING

 Technical/commercial queries  Techno- commercial acceptance of bids  Opening of price bids  Comparison of quoted prices  Internal approvals  Award

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EVALUATION METHODOLOGY

 Bidders’ evaluation criteria  Technical evaluation  Commercial evaluation  Comparison of evaluated prices

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BEC-TECHNICAL

For Purchase/ Supply Order:

 Experience in similar equipment / materials / plants

supplies in previous 5-7 years (depending upon criticality where applicable).

For Works/ Turnkey Jobs

 Experience of at least one similar work of about 50% of

value of work in previous 5-7 years period.

DOCUMENTS TO MEET TECHNICAL BEC

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• 1. Bidder must submit complete Work Order as proof of

execution inclusive with SCC, SOW

• 2. Completion Certificate duly certified by EIC which

consists :

a.

Date of issuance

b.

Date of completion

c.

Amount of Execution

d.

Contract Period

e.

Reference of Work Order No.

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BEC- FINANCIAL

Turnover :Min 50 %of the annualised estimated value of work tendered for, during preceding 3 years Net worth : Positive in the last audited financial year Working capital: 10% of anualised estimated value in the last audited financial year

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AWARD

AWARD OF WORK IS DONE ON THE BASIS OF

LOWEST EVALUATED TECHNO- COMMERCIALLY ACCEPTABLE OFFER BASIS AFTER DUE APPROVALS, AS PER EXISTING DELEGATION OF POWERS

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SCOPE OF INDENTING DEPARTMENT

Preparation of

• Pre-Tender Conference
• Estimate
• Scope of services
• Special Conditions
• f Contract
• Schedule of Rates
• Technical BEC
• Technical Evaluation of

Bids

PRE-AWARD POST AWARD

• Expediting/Follow-up
• Monitoring of Execution/
• Performance
• Inspection and

Measurements

• Payments
• Contract closure

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SCOPE OF SERVICES/WORK

 Well defined Scope  Detailed Specification  Execution Methodology  Manpower Deployment Plan, if any  Requisite Qualification of Manpower, if

applicable

 Provision of compliance to statutory

requirement

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SPECIAL CONDITIONS OF CONTRACT (SCC)

 Shall be read in conjunction with GCC, Specifications,

Drawings and any other documents forming part of the contract

 Shall be deemed to over ride GCC where any portion of

GCC is repugnant

 Payment Terms  Completion Period  Price Reduction Schedule  Any other conditions not covered in GCC, Scope of services

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SPECIAL CONDITIONS OF CONTRACT (SCC)

 GUARANTEE/WARRANTY CLAUSE  DEFECT LIABILITY PERIOD  RESPONSIBILITY OF VENDOR  PENALTY CLAUSE  TERMINATION CLAUSE  TECHNICAL SPECIFICATIONS

NOTE: ALL THESE CLAUSES ARE TO BE READ IN CONJUNCTION WITH GENERAL CONDITIONS OF CONTRACT.

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SOME IMPORTANT CLAUSES OF GCC

 Clause no 21: Priority of contract documents  Clause no. 24: Contract Performance Security  Clause no 29: Failure by the contractor to comply

with the provisions of the contract

 Clause no 32: Termination of contract  Clause no 46: Payment if the contract is terminated

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SOME IMPORTANT CLAUSES OF GCC

 Clause 21: In case of ambiguities or discrepancies the

priority of the documents forming the contract shall be as follows unless otherwise provided in the contract:

 Contract Agreement  Letter of Acceptance  Instructions to Bidders  Special Conditions of Contract  General Conditions of Contract  Any other document forming part of the Contract

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SOME IMPORTANT CLAUSES OF GCC

 Clause 24:  To submit Performance Security of 10% of the contract

value within 15 days from the date of notification of award.

 Security in the form of DD/BG/LC  Validity : 3 months beyond defect liability period  Clause 29:  Provides stipulation in case of failure or refusal by the

Contractor to execute the work or any part thereof

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SOME IMPORTANT CLAUSES OF GCC

 Clause 32:  Provides stipulation in case of termination of contract for

death/liquidation/bankruptcy/non-performance.

 Provides stipulation to put the Contractor on holiday in case

• f non-performance

 Clause 46:  Provides stipulation for the payment to be made in case of

termination pursuant to clause No. 29

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Dos & Don’ts

 ADHERE TO GAIL’S LAID DOWN SYSTEMS AND

PROCEDURES

 FOLLOW THE ‘DELIGATION OF POWER AT VARIOUS

STAGES

 PREPARE REALISTIC COST ESTIMATES  PRE-TENDER CONFERENCE SHOULD BE CALLED WITH

PROSPECTIVE BIDDERS TO CONSIDER ACCEPTABLE VIEWS/INPUTS OF VENDORS

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Dos & Don’ts

 LOADING

& REJECTION CRITERIA FOR DEVIATIONS SHOULD BE CLEARLY SPELTOUT

 CONTRACT SPECIFICATIONS AND ACCEPTABLE

STANDARDS SHOULD BE IN EXPLICIT WAY

 MOBILISATION ADVANCE SHOULD BE AVOIDED.

IF REQUIRED IN EXCEPTIONAL CASES. SHOULD BE INTREST BEARING

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Dos & Don’ts

 CLAUSES IN GCC WHICH ARE NOT APPLICABLE

SHOULD BE DELETED – BONUS, TRAINING ETC.

 TQS/CQS TO BE ISSUED TO ALL NOT SELECTIVE  VENDOR LIST SHOULD BE PERIODICALLY UPDATED

THRU TRANSPERENT WAY

 AVOID NOMINATION AWARDS  ENSURE QUOTED RATES ARE IN FIGURES AND WORDS

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Dos & Don’ts

 TC MEMBERS TO PUT DATES AND NO CORRECTIONS  ENSURE CONTRACTOR SUBMISSION OF APPLICABLE

VARIOUS INSURANCE POLICIES

 MAINTAIN HINDERENCE REGISTER TO KEEP EVENT

LOGS

 ENSURE CONTRACT EXECUTION AS PER CONDITIONS

OF CONTRACT.

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Dos & Don’ts

 DO NOT ALLOW ANAMOLY/AMBIGUITY IN DIFFERENT

PARTS OF TENDER

 PERCENTAGE CHECKING OF MEASUREMENTS

SHOULD BE STRICTLY FOLLOWED

 TIME / COST OVERRUN ISSUES CAREFULLY

ADDRESSED

 DEVIATIONS/SUBSTITUTIONS TO BE AVOIDED

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Dos & Don’ts

 MAINTAIN ALL CORRESPONDANCE TILL END OF THE

CONTRACT – ARBITRATION

 EXTEND TIMELY SUPPORT TO LEGAL TO DEAL

ARBITRATION CASES

 ENSURE VALIDITY OF BGS/SECURITIES

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VENDOR PERFORMANCE APPRAISAL

METHODOLOGY :

 Preparation of performance rating data sheet  Measurement of performance  Initiation of measures  Implementation of corrective measures

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VENDOR PERFORMANCE APPRAISAL

EXCLUSIONS :

 Orders/Contracts below Rs. 7 Lakh  One time Vendor/Contractor/Consultant  Orders for Misc/Administrative Items/Non-stock Non-

valuated Items

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