diesel locomotive works, varanasi stores department · 2019-10-17 · ranking of offers. further,...

Instructions to Tenderers

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Diesel Locomotive Works, Varanasi

Bid Document Diesel Locomotive Works, Varanasi

Bid Document for Global Tender


Stores Department

Bid Document (Global Tender)

CONTENTS

Section

Topic Page

1 Instructions to Tenderers for E-Tenders 3

2 General Conditions of Contract 21

3 Special Conditions of Tender for M&P Items 38

4 Annexures

1 Offer form for Imported offers 44-45

2 Offer form for Indigenous offer 46-47

3 Proforma for Performance Statement 48

4 Proforma for Equipment & Quality Control 49

5 Deleted 50

6 Proforma Bank Guarantee for Bid Guarantee/ Earnest Money 51-52

7 Deleted 53

8 Deleted 54

9 Details of shipping arrangements for Liner Cargoes in respect of F.O.B./ F.A.S. contracts for Imports

55-56

10 Proforma for indicating particulars of Cargoes for which shipping space is required to be arranged by the shipping Co-Ordination and Chartering organisation of the Ministry of Shipping

57-58

11 Proforma for statement of Deviations 59

12 Proforma of Bank Guarantee for Performance 60-61

13 Proforma of Bank Guarantee for 10% contract value towards Warranty Guarantee

62-63

14 Work Test Certificate 64

15 Check List 65

16 Electronic Clearing Service (Credit Clearing) Model Mandate Form 66

17 DLW Bill Format 67

Prankur

Typewritten Text

Effective from 06 August, 2016


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18 Check List for Submission of Bills 68

19 Format for Affidavit of Self Certificate regarding Domestic Value Addition in an Electronic Product & List of Generic Products as notified by Department of Electronics and Information Technology & Department of Telecommunications.

69-70

20 Notified Electronic Products having “Preference for Domestically Manufactured Electronic Products in Government Procurement”

71-75

21 Details of inspection clause and consequences of rejection shall be governed by detailed instructions pertaining to inspection/ warranty replacement

76-77

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IRS Condition of Contract (Click to Open or Download) IRS Condition

http://www.indianrailways.gov.in/railwayboard/uploads/tenders/pdf/IRS-Conditions-of-Contract.pdf

http://www.ireps.gov.in/ireps/upload/files/rlyboard_documents/IRS.pdf

http://www.ireps.gov.in/ireps/upload/files/rlyboard_documents/IRS.pdf


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Section 1

Instructions to Tenderers for E-Tenders

1. Before filling up the tender form, please read the

(A) Instruction to Tenderers for E-Tenders, (B) General Conditions of Contract (C) Special Conditions of Contract

(D) IRS Conditions of Contract (As Applicable). (E) Schedule of Requirement (F) Notice Inviting Tender

THESE ARE AVAILABLE ON THE WEB PAGE OF DIESEL LOCOMOTIVE WORKS, VARANASI (www.dlw.indianrailways.gov.in) AS ALSO ON THE IREPS WEB PAGE www.ireps.gov.in. THE CONTRACT WILL BE GOVERNED BY THESE CONDITIONS. YOUR DIGITAL SIGNATURE ON THE E-TENDER FORM WILL BE INDICATIVE THAT YOU HAVE READ AND ACCEPTED ALL THE CONDITIONS AND UNDERTAKE TO ABIDE BY THESE CONDITIONS UNLESS SPECIFICALLY DENIED / MENTIONED BY YOU IN YOUR OFFER.

1.1. On behalf of the President of India, the Controller of Stores, Diesel Locomotive Works Varanasi, (hereinafter referred to as the „Purchaser‟ or „DLW ‟ or „Railways‟) invites electronic tenders for the supply of items as set forth in the “Notice Inviting Tender” and “Item Details” page attached with “Financial Rate Page screen” of each electronic tender. The Contract, placed on successful tenderer(s), shall be governed by (i) the latest version of IRS Conditions of Contract, (ii) Instructions to tenderers for e-tenders (iii) General Conditions of Contract and (iv) Special Conditions of contract.

1.2. It will be presumed that the firms who have submitted the e-bid along with tender cost, have gone through and accepted all the terms and conditions of tender, until and unless firms specify the deviations from those conditions and so indicated specifically under the headings – “Technical Deviation Statement” and “Commercial Deviation Statements”.

1.3. E-Tender Document: E-Tender documents consist of:

(A) Instruction to Tenderers for E-Tenders, (B) General Conditions of Contract (C) Special Conditions of Contract

(D) IRS Conditions of Contract (As Applicable). (E) Schedule of Requirement (F) Notice Inviting Tender (G) Techno-commercial offer form including attachments (if any) (H) Financial Offer Form

1.4. Manual offers shall NOT be accepted against E-Tenders. All such manual offers shall be considered as invalid offers and shall be rejected summarily without any consideration.

1.5. Submission of e-Tenders:

Before proceeding to fill up the e-tender for submission, bidders may please note that non compliance of following important parameters/conditions may lead to summarily rejection of their bids. These conditions (from

Para 1.5.1 to Para 1.8) though find mention at appropriate places in the bid documents, are being indicated here itself lest the offer(s) get summarily rejected due to inadequate attention by the bidders to these specific conditions.

1.5.1. Tender Cost: Submission of cost of tender document:

1.5.1.1. Bids received without tender cost shall be summarily rejected. While uploading the bids, tenderers are advised to submit cost of tender document online through e- transfers (i.e. online submission of tender document cost).

1.5.1.2. Firms registered with NSIC/DIC and claiming for exemption from tender cost to please specifically note:

As per the extant instructions, firms registered with NSIC/DIC are entitled for getting exemption from submission of tender cost provided they are registered for specific tendered item(s). Since submission of tender cost is a mandatory requirement, bidders are advised to submit the cost of tender document unless the certificates issued by the NSIC/DIC contain the specific item(s) for which tender has been issued. Any offer, which is not accompanied with appropriate cost of tender, will be rejected, if it is found that certificate(s) issued by the NSIC/DIC do not contain the specific tendered item(s) with the identical tendered specification. While comparing the item(s), amendments and/or Revision and/or Alteration issued in the tender specification shall not be taken into consideration.

Hence, tenderers are advised not to take any risk and in case of any doubt with regard to difference in the description of tendered item(s) including the tendered specification vis-a-vis item(s) appearing in the NSIC/DIC certificate(s), and should submit the cost of tender along with their offer.

Tenderers should further note that descriptions which are general in nature like Loco Components, fabrication

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items and/or drawing/specification “as per customers‟ requirement”, “as per railway requirements” etc appearing in the NSIC/DIC certificates shall not be treated at par with tendered item(s) and such offers, if not accompanied with appropriate cost of tender, shall be rejected.

NSIC/DIC certificate(s) should be valid as on date of tender opening else the firm shall be treated as if they are not registered with NSIC/DIC.

1.5.2. No tender cost shall be charged for Limited/ and PAC/Single tenders.

1.5.3. Government Ministries, departments and Undertakings are exempted from submission of tender cost.

1.6. Price Variation Clause (PVC):

1.6.1. Tenderers are advised to quote as per specific Price Variation (PV) formulae and base date for Raw Material prices given in the schedule of requirement. Offers with deviation in the PV formula and/or base date of price(s) of input raw material(s) other than as specified in the tender schedule, will be summarily rejected. Offers from bidders quoting with fixed price where tender incorporates pre defined PVC will also be summarily rejected.

1.6.2. In case no PVC has been incorporated in the schedule of requirement, bidders must quote on fixed price basis only. Offers with PVC in such cases will be summarily rejected.

1.7. Validity of offers:

Unless otherwise specified, offers should be valid for 150 days for Global Tenders after closing date of tender. Any offer having lesser validity shall be deemed as commercially unresponsive and will be summarily rejected

1.8. Option Clause:

Unless non-application of this clause is specifically indicated in the schedule of requirements, bidders shall confirm unqualified acceptance of option clause. Non acceptance of this clause or acceptance of this clause with any riders may lead to rejection of the bid. Any mention such as option clause is acceptable with mutual

consent, will be treated as non-acceptance of the option clause. In case it is neither confirmed nor denied, it would be presumed that bidder has accepted this condition.

1.9. Filling of E-Tender Form:

1.9.1. Tenders should be duly filled in (on the assigned spaces), duly signed with the digital signature and submitted online. All mandatory fields marked with (*) have to be filled by the tenderers.

1.9.2. Tenderers must fill-in the techno-commercial offer form (consisting of eligibility criteria, terms and conditions, performance statement, deviation statement, checklist & special conditions etc.), financial offer form and attach scanned copies of necessary documents. The tenderers must note that they will be considered fully responsible for scanned copies of documents submitted by them under their digital signature and as per IT Act they will not be allowed to disown any submissions under the said digital signature.

1.9.3. All the mandatory fields of the Techno-commercial offer form and financial offer form (i.e. Rate page) including basic rate, all taxes and duties (including maximum percentage of Sales Tax/VAT, and Excise Duty), or any other taxes/duties which may become applicable during the currency of the contract, freight upto destination and any other charges have to be filled up by the vendor. The unit of rate shall be as indicated in the tender schedule and cannot be altered by the vendor. All-inclusive rates on FOR destination basis shall be automatically calculated by the system and shown to the vendor through a Pop-up window before final submission of offer.

1.9.4. Tenderers should show discount, if any, at the specified place in the rate schedule only, instead of anywhere else in the offer. Discounts not shown at designated place will be summarily ignored for assigning inter-se ranking of offers. Further, conditional discount(s) linked with quantity, payment, Inspection agency, destination, delivery place etc. will not be considered while adjudging the inter-se position of offers received.

Purchaser, however reserves the right to avail any such conditional discount for placement of contract(s) and/or for counter-offering to the successful tenderers where considered warranted.

1.9.5. Railway reserves the right to cancel the tender for full or part tendered quantity without assigning any reason. However purchaser will have his discretion to accept an offer for quantities which are up to 30% higher than the tendered quantity. The rates quoted by the tenderers for the full quantity would be taken as valid.

1.9.6. Delivery is required to be made at the place as stated in the tender. Any deviation from the same may be considered as commercially unresponsive and the offer.

1.9.7. In a Global Tender, unless otherwise specifically indicated, Bidders are required to quote delivery as per following delivery schedule.

25% of ordered quantity Within three months from date of PO.

Next 25% of ordered quantity Within next three months thereafter.

Next 25% of ordered quantity Within next three months thereafter.

Last 25% of ordered quantity Within next three months thereafter.


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Note-: Notwithstanding the delivery period offered by the bidder, purchaser reserves the right to incorporate the delivery period as per the tender condition and successful tenderers are expected to abide by the same.

1.9.8. Mode of Delivery from indigenous suppliers: Deliveries are preferably to be made by Road transport.

1.9.9. Manufacturer‟s name and address and Brand of the stores offered must be stated, if and wherever required as per drawing/ specification. Otherwise offers are liable to be rejected.

1.9.10. Corrigendum: Purchaser reserves the right to issue any corrigendum to the tender up to five days prior to the

due date of opening of the tender, excluding the date of opening. Tenderers are also advised, in their own interest, to regularly check, till the opening of the tender, the website www.ireps.gov.in to see whether any such corrigendum to the tender has been issued or not and for submitting their e-bids or revising their e-bids.

1.9.11. The Tenderers are required to quote their rates in the tendered units (e.g. Nos./Kgs./Sets/Mtrs/Kmtrs etc.) as per the tender schedule.

1.9.12. Instead of waiting for last date of tender opening, Tenderers are advised to submit their offer and/or electronically submit Tender Cost well in advance. In the event of bidder not being able to submit their offer/ Tender Cost due to any technical glitch or network congestion or any other reasons whatsoever, Railway administration will not be responsible. No correspondence in this regard shall be entertained.

1.10. Original offer, Alternate Offer and Revised Offer:

1.10.1. The vendors can submit a revised commercial offer any time before the stipulated date and time of submission of bid and in such a case, the last revised offer submitted shall be considered valid. Tenderers must note that only last Revised offer, which is deemed to supersede all previous offers shall be tabulated.

1.10.2. The tenderers can also submit “Alternate Offer”. An Alternate offer will be so considered by the system, tabulated and placed at its appropriate position in the tabulation statement.

1.11. Submission of cost of tender document:

1.11.1. Tender Cost : Submission of cost of tender document:

Bids received without tender cost shall be summarily rejected. While uploading the bids, tenderers are advised to submit cost of tender document online through e- transfers (i.e. online submission of tender document cost). Manual Submission of Tender Cost is Not Acceptable.

1.11.2. Firms registered with NSIC/DIC and claiming for exemption from tender cost to please specifically note:

As per the extant instructions, firms registered with NSIC/DIC are entitled for getting exemption from submission of tender cost provided they are registered for specific tendered item(s). Since submission of tender cost is a mandatory requirement, bidders are advised to submit the cost of tender document unless the certificates issued by the NSIC/DIC contain the specific item(s) for which tender has been issued. Any offer, which is not accompanied with appropriate cost of tender, will be rejected, if it is found that certificate(s) issued by the NSIC/DIC do not contain the specific tendered item(s) with the identical tendered specification. While comparing the item(s), amendments and/or Revision and/or Alteration issued in the tender specification shall not be taken into consideration.

Hence, tenderers are advised not to take any risk and, in case of any doubt with regard to difference in the description of tendered item(s) including the tendered specification vis-a-vis item(s) appearing in the NSIC/DIC certificate(s), should submit the cost of tender along with their offer.

Tenderers should further note that descriptions which are general in nature like Diesel Loco Components, fabrication items and/or drawing/specification “as per customers‟ requirement”, “as per railway requirements” etc appearing in the NSIC/DIC certificates shall not be treated at par with tendered item(s) and such offers, if not accompanied with appropriate cost of tender, shall be rejected.

NSIC/DIC certificate(s) should be valid as on date of tender opening else the firm shall be treated as if they are not registered with NSIC/DIC.

1.11.3. No tender cost shall be charged for Limited and PAC/Single tenders.

1.11.4. Government Ministries, departments and undertakings are exempted from submission of tender cost.

1.12. Cost of Tender Documents:

The basic tender document cost will be as below:-

S. No. Tender Value *Cost of Tender Document

1. Above Rs. 10.0 Lakh and up to 30 Lakh each Rs. 500.00

2. Above Rs. 30.0 Lakh and up to 2.0 Crore each Rs. 1,500.00

3. Above Rs. 2.0 Crore and up to 25.0 Crore each Rs. 2,500.00

4. Above Rs. 25.0 Crore and up to 50.0 Crore each Rs. 5,000.00


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5. Rs. 50.0 Crore and above Rs. 10,000.00

*VAT as applicable shall be charged extra. For total cost of tender document the NIT may be referred.

1.13. Price Variation Clause:

There may be cases of procurement of stores, wherein the schedule of requirement will indicate the Price Variation formula.

1.13.1. Tenderers are advised to quote as per specific Price Variation (PV) formulae and base date for Raw Material prices given in the schedule of requirement. Offers with deviation in the PV formula and/or base date of price(s) of input raw material(s) other than as specified in the tender schedule, will be summarily rejected. Offers from bidders quoting with fixed price where tender incorporates pre defined PVC will also be summarily rejected.

1.13.2. In case no PVC has been incorporated in the schedule of requirement, bidders must quote on fixed price basis only. Offers with PVC in such cases will be summarily rejected.

1.14. Firms are advised to ensure that address furnished by them for getting digital signature from accredited agencies are same as that furnished to and available with the centralized source/vendor approving authorities such as RDSO/CLW/DLW/ICF etc. They are further advised that while registering themselves in the IREPS website for participation in E-procurement system, the same address as above is filled up, to avoid any vitiation of information and consequent impairment in their credentials.

1.15. Purchase Preference

1.15.1. Purchase Preference And Other Benefits to Micro And Small Enterprises MSE : In supersession of earlier

policy of price preference and other benefits to the small scale and in keeping with the “Public Procurement for Micro and Small Enterprises (MSEs) order, 2012” issued by the Ministry of Micro Small and Medium Enterprises, Government of India, benefits/preference will be extended to the registered Micro and Small Scale Enterprises as follows: -

1.15.1.1. MSEs registered for the tendered item(s) with any of the following shall be eligible for exemption from submission of the Tender cost.

a) District Industries Centre b) Khadi and Village Industries Commission c) Khadi Village Industries Board d) Coir Board e) National Small Industries Corporation f) Directorate of Handicraft and Handloom g) Any other body specified by Ministry of MSME

However, bidders are advised to refer to Para 1.11.2 once again before concluding about non –submission of tender cost.

1.15.1.2. MSEs registered with any of the above agencies for the tendered item shall be exempted from payment of Earnest Money.

1.15.1.3. In tenders, participating and registered MSEs quoting price within price band of (L1+15%) shall be allowed to supply of portion of the requirement by bringing down their price to L1 price in a situation where L1 price is from Tender other than an MSE and such MSEs can be together considered to ordering up to 20% of net procurable quantity in the Tender.

1.15.1.4. MSEs interested in availing themselves of these benefits must enclose, along with their offer, a copy of proof of their registration with any of the above mentioned agencies for tendered item (as elaborated in Para 1.5.1.2 & 1.11.2) and also indicate the terminal validity date of their registration.

The registration certificate should also include information about the status in regard to their category i.e. the ownership MSE pertains to SC/ST/Other category clearly. Absence of any such information in the registration certificate would be taken as MSE failing in the category as “others”.

1.15.1.5. Failing submission of certificate as per Para 1.15.4 above, such offer will not be eligible for consideration of benefits detailed in MSE notification of Government of India dated 23.09.2012.

1.15.2. Preference to Domestically Manufactured Electronic Products (DMEPs) : The Purchaser reserves the

right for providing Purchase preference to Domestically Manufactured Electronic Products (DMEP) in terms of the Department of Electronics and InformationTechnology (DeitY) Notification No.33(3)/2013-1PHW dtd.23.12.2013 read with further Notifications and Guidelines issued thereunder which can be downloaded from DeitY website i.e., URL www.deity.gov.in/esdm. Purchase preference for domestic manufacturer, methodology of its implementation, value addition to be achieved by domestic manufacturers, self certification and compliance and monitoring shall be as per the aforesaid Guidelines/Notifications. The Guidelines may be treated as an integral part of the tender documents.

1.15.2.1. The Preference for Domestically Manufactured Electronic Products (DMEPs) shall be operated as follows:


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(i) The Electronic products for which preference will be provided to domestic manufacturers shall be as notified by the concerned Ministry/Department which are as under-

SN Product Name Notifying Ministry/Department Notification No. & Date

1 Telecom Products DOT 18-07/2010-IP

dated.05.10.2012

2 Desktop PCs and

Dot Matrix Printers

Department of Electronics and Information

Technologies, Ministry of Communication and IT

F.No.33(3)/2013- IPHW

dated.22.05.2014

3 Laptop PC Department of Electronics and Information


F.No.33(3)/2013- IPHW

dated.22.05.2014

4 Tablet PC Department of Electronics and Information


F.No.33(3)/2013- IPHW

dated.22.05.2014

5 Smart Card Department of Electronics and Information


F.No.33(3)/2013- IPHW

dated.22.05.2014

6 LED Products Department of Electronics and Information


F.No.33(3)/2013- IPHW

dated.22.05.2014

(ii) The quantity of procurement for which the preference will be provided to domestic manufacturers

shall be percentage of the total tendered quantity as specified in the notifications issued by Concerned Ministry/Department indicated in Sub Para (i) above.

(iii) Percentage of Domestic value addition which qualifies the electronic product to be classified as

Domestically Manufactured also shall be as specified in the notifications issued by Concerned Ministry/Department indicated in Sub Para (i) above.

(iv) The preference to Domestic Manufactured Electronic products (DMEP) shall be subject to meeting

technical specifications and matching L1 price. (v) Only those domestic manufactures whose bids are within 20% of the L1 E-bid would be allowed an

opportunity to match L1 E-bid.

1.15.2.2. The tenderers, claiming to bid in the status of domestic manufacturer are required to give and upload an undertaking in the format as given as 'Form 1' of the guidelines, copy at Annexure VII. Furnishing of false information on this account shall attract penal provisions as per the Guidelines /Notifications.

1.15.2.3. Procedure for award of contracts involving procurement from Domestic Manufacturers: "For each

electronic product proposed to be procured, among all technically qualified offers, the lowest quoted price will be termed as L1 and the rest of the offers shall be ranked in ascending order of price quoted as L2, L3, L4 and so on. If L1 offer is of a domestic manufacturer, the said tenderer will be awarded full value of the order. If L1 offer is not from a domestic manufacturer, the value of the order awarded to L1 tenderer will be the balance of procurement value after reserving specified percentage of the total value of the order for the eligible domestic manufacturer. Therefore, the lowest tenderer among the domestic manufacturers, whether L2, L3, L4 or higher, will be invited to match the L1 offer in order to secure the procurement value of the order earmarked for the domestic manufacturer. In case first eligible tenderer (i.e. domestic manufacturer) fails to match L1 offer, the tenderer (i.e. domestic manufacturer) with next higher offer will be invited to match L1 offer and so on. However, Railway may choose to divide the order amongst more than one successful tenderer as long as all such tenderer match L1 and the criteria for allocating the tender quantity amongst a number of successful tenderer is clearly articulated in the tender document itself. In case, all eligible domestic manufacturers fail to match the L1 offer, the actual tenderer holding L1 offer will secure the order for full procurement value. Only those domestic manufacturers whose offers are within 20% of the L1 offer would be allowed an opportunity to match L1 offer."

1.15.2.4. In case of turnkey/system-integration projects, eligibility of a tenderer as a domestic manufacturer would be determined on the domestic value addition calculated only for the value of the notified DMEPs forming part of the turnkey/system integration projects and not on the value of whole project.

1.16. Drawings and Specifications:

1.16.1. Unless specified otherwise, Drawings and Specifications as mentioned in the tender schedule are available at www.dlw.indianrailways.gov.in and can be downloaded from there.

1.16.2. If any tenderer happens to quote with his own Drawing No / Part No/ Specification, then, he shall have to necessarily submit all the requisite documents and information in support of his offer being in conformity with the tendered Drawing / Specification. Furthermore, such drawings / specifications / catalogue are also to be uploaded, failing which the offer will be liable to be rejected. Tenderers should further note that in the event of their quoting as per their own drawing and/or specification, they should necessarily indicate the deviations in

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their drawing vis-a-vis tendered drawing in the form of ―technical deviation‖ failing which the offer will be

deemed as incomplete and will be dealt on its merits.

1.16.3. All parameters/Clauses of specification should either be complied with or commented upon. Deviation(s) in respect of those parameters/clauses, which are part of the technical specification, would be treated as technical deviation (s). Bidders are advised to bring those deviation(s) clearly in the technical deviation statement. In case, these deviations are not indicated in the technical deviation statement, it will be presumed that offer is as per the tendered specification in all respects. Any ambiguity shall be to the disadvantage of the bidder.

1.17. Documents to be attached / uploaded along with e-Bid:

Scanned/soft copies of the following documents should be uploaded along with the e-Bid:

1.17.1. Performance statement against Railways‟ orders for supply of same or similar items in the prescribed proforma. Supporting documents in support of supply of material such as Supply/purchase orders, inspection certificates, Receipt Notes/Receipt Order etc. to substantiate their past performance are required to be uploaded.

1.17.2. Tenderers own drawing/specification, if applicable.

1.17.3. Details of Machinery and Plant, other equipments, testing facilities, quality management / control systems and details of technical manpower available.

1.17.4. Letter of approval from RDSO / Railways indicating current validity and approval of their QAP by RDSO, wherever applicable.

1.17.5. Tenderers should also indicate their registration number with the concerned railway with monetary limit, trade groups for which registered, and validity date of registration,

1.17.6. Current and Valid NSIC/DIC Certificate, if registered with NSIC/DIC for the tendered item.

1.17.7. Any other relevant document as required viz. Clause wise compliance of technical specifications, Value addition statement by DMEPs etc.

1.17.8. Documents which do not find mention in the "List of attachments” in the offer form may not be necessarily taken cognizance of.

1.18. Check Sheet for Vendors:

1.18.1. Vendors are advised to complete the “Check Sheet” as it appears as Part-„G‟ in Techno-Commercial offer form of IREPS.

1.19. Bid Submission:

1.19.1. E-bid along with the relevant documents must be uploaded and digitally signed with the digital signature of the pre-authorized personnel of the tenderer already registered with the IREPS web site. Digital signature used must be “Class IIIB with Company Name” obtained from an Authority approved by the Controller of Certifying Agency, Ministry of Information Technology, Government of India.

1.19.2. Tenderers must look out for NIT as soon as it is available in IREPS website and upload their offer well in advance without waiting for closing date and time, to avoid last minute hassles in their own computer system or communication line. Diesel Locomotive Works, Varanasi shall not be responsible for non-participation of vendors due to any technical problems on the day of tender closing time.

1.19.3. Only bids received in the Electronic form through www.ireps.gov.in will be considered.

1.19.4. The e-procurement system does not permit submission of any offer after the closing date and time of that e-Tender. Hence there is no scope of any Late / Delayed offers in the online bidding process.

1.19.5. All information in the offer must be in English. Information in any other language must be accompanied by its authenticated translation in English; failure to comply with this may render the offer liable to be rejected. In the event of any discrepancy between an offer in a language other than English and its English translation, the English translation will prevail.

1.19.6. Railway would prefer to deal with manufacture of stores directly and not with agent, brokers & middlemen. Manufactures are, therefore, encouraged to quote against the tender.

1.19.7. Indian Agent of firm may submit their offer in Indian Rupees along with tender specific Authorization from OEM.

1.19.8. The indigenous tenderers (including new tenderers) are advised to indicate the indigenization achieved so far and further target of achieving 100% indigenization. For this purpose, they must give percentage of import content utilized in manufacturing of the items and the time frame when 100% indigenization wil l be achieved, giving detail of import content in future (year wise).

1.19.9. Price basis and Indemnity

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1.19.9.1. Foreign tenderer shall quote his prices on the basis of (i) FOB nearest port of shipment having facilities to handle the same, (ii) CFR Indian Port.

1.19.9.2. Under the CFR price, the FOB price, the ocean freight charges shall be indicated separately.

1.19.9.3. The terms FOB and CFR shall be as defined in the current edition of International Rules for the interpretation of the Trade Terms published by the International Chamber of Commerce, Paris and commonly referred as INCOTERMS 2010.

1.19.9.4. These prices should not include agency commission payable to Indian Agents which shall be exhibited as already indicated in instruction to tenderers.

1.19.9.5. The prices should be stated only in one currency and should be either in the currency of the manufacturer's country or an equivalent amount in the currency of the country of the tenderer. However, if the goods offered are manufactured in more than one country, the tenderer may state the bid price in the currency of the country of origin in which he wishes to be paid. Alternatively, tenderer may, at his option, state the entire bid price in U.S. Dollars.

1.19.9.6. In case contract is placed on FOB basis, the purchaser will have option to modify the contract on CFR basis.

1.19.9.7. Unless otherwise mentioned in SOR, the prices quoted should be firm and not subject to any variation. In case of CFR, ocean freight charges must also be firm and no variation will be allowed on this account after the opening of tenders.

1.19.9.8. The tenderers should quote their lowest possible price. Quotations should be made only for units specified in the "Schedule of Requirements"

1.19.9.9. Tenderers submitting indigenous offers shall indicate all the components of price which shall include all State and Central taxes and Excise Duties leviable on the final finished supplies tendered for. In addition, a complete break-up showing the ex-factory price, taxes and excise duties individually, incidentals and handling charges, freight and insurance charges etc. if any shall also be given.

1.19.10. Effect and Validity of offer

a) The submission of any offer connected with these specifications and documents shall constitute an agreement that the tenderer shall have no cause of action or claim against the purchaser for rejection of his offer. The purchaser shall always be at liberty to reject or accept any offer or offers at his sole discretion and any such action will not be called into question and the tenderer shall have no claim in that regard against the purchaser.

b) Offers shall be deemed to be under consideration immediately after they are opened and until such time the official intimation of award is made by the purchaser to the tenderer. While the offers are under consideration, tenderers and/or their representatives or other interested parties are advised to refrain from contacting the purchaser by any means. If necessary, the purchaser may obtain clarifications on the offers by requesting for such information from any or all the tenderers, either in writing or through personal contact, as may be considered necessary Tenderers are not permitted to change the substance of their offers after the offers have been opened.

1.20. Qualifying requirements of tenderers

1.20.1. The tenderer shall provide satisfactory evidence acceptable to the Purchaser to show that-

(a) He is a licensed manufacturer, who regularly manufactures the items offered and has adequate

technical knowledge and practical experience.

(b) He has adequate financial stability and status to meet the obligations under the contract for which he is

required to submit a report from a recognized bank or a financial institution.

(c) He has adequate plant and manufacturing capacity to manufacture and supply the items offered within

the delivery schedule offered by him;

(d) He has established quality control system and organization to ensure that there is adequate control at

all stages of the manufacturing process.

1.20.2. For purposes of para-1.20.1. the tenderers should additionally submit-

(a) a performance statement as in Annexure-3, giving a list of major supplies, effected in the recent past, of

the items offered by him giving details of the purchaser's name and address, order No. and date and

the quantity supplied and whether the supply was made within the delivery schedule;

(b) a statement indicating details of equipment employed and quality control measures adopted as in

Annexure-4


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1.20.3. In addition to the above, information regarding his capacity / capability, if required by the purchaser shall be

promptly furnished by the tenderer.

1.20.4. Tenderer not submitting the requisite information may note that his offer is liable to be ignored.

1.21. Cartel Formation:

1.21.1. The Tenderers are expected to quote most competitive prices.

1.21.2. Wherever all or most of the approved firms quote equal rates and cartel formation is suspected, the

purchaser reserves the right to place order on one or more firms with exclusion of the rest, without assigning

any reasons thereof.

1.21.3. Firms are expected to quote for a quantity not less than 50% of the tendered quantity. Offers for quantity less

than 50% of tendered quantity will be considered unresponsive and liable to be rejected in case Cartel

Formation is suspected. Railways however reserve the right to order on one or more firms for any quantity.

1.21.4. The firms who quote in cartel are warned that their names may be deleted from list of approved sources in

addition of referring the matter to The Competition Commission of India (CCI).

1.21.5. Wherever there is suspected Cartel amongst approved sources, the Railways reserves the right to place

orders on Part -II sources and new sources beyond limits of 25% / 15% and 5% respectively.

1.22. Tender Opening:

1.22.1. Electronic tender boxes will be opened only after stipulated date and time of the tender as shown on the

IREPS Website.

1.22.2. After opening of the tender The icon will turn .

1.22.3. All the participating vendors who have submitted valid electronic offers can view their own offer details as

well as the tender tabulation statement, after tender is opened, using internet access by visiting the web site

www.ireps.gov.in instantly by clicking on the icon.

1.22.4. Railway does not guarantee opening of the tenders at specified date and time due to reasons beyond its

control and hence tenders can be opened after the due date and time also. Vendors, however, cannot

submit/modify any offer or attach any file to it after the closing date and time for submission of bid as

stipulated in the tender notice as System does not permit the same after closure of the virtual tender box

regardless of the fact whether tender has been opened or not.

1.23. Quantity to be ordered

1.23.1. Railways reserves the right to cancel the tender for full or part quantity tendered without assigning any

reason. The rates quoted by the tenderers for the full quantity would be taken as valid even for part quantity.

1.23.2. Wherever considered necessary by the purchaser, the quantity to be ordered can be split amongst two or

more sources for ensuring better availability of material keeping in view the vital / critical nature of item,

quantity to be procured, delivery requirements, capacity of the firms and past performance of the firms. In such

cases the provisions of Para 1.24 shall be normally applicable.

1.23.3. The Controller of Stores or any officer authorized on behalf of President of India acting through, General

Manager is not bound to accept the lowest or any offer nor to assign any reason for doing so and reserves

the right to accept any offer in respect of the whole or any portion of the item specified in the tender and

contractor shall be required to supply at the rate quoted.

1.24. Criteria for Splitting of Tender Quantity (In case of pre-decided split ordering)

1.24.1. The purchaser reserves the right to distribute the procurable quantity on one or more than one of the

eligible tenderers. Zone of consideration of such eligible tenderers will be the right of the Purchaser. The

zone of consideration will be a dynamic mix of inter se position of firms, supply performance of the firms,

quantity being procured, criticality of and lead time of supply of the item, number of established suppliers,

their capacity etc.

http://www.ireps.gov.in/


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1.24.2. Whenever such splitting of procurable quantity is made, the quantity distribution will depend (in an inverse

manner) upon the differential of rates quoted by the tenderers (other aspects i.e. adequate capacity-cum-

capability, satisfactory past performance of the tenderers, outstanding orders load for the Railway making the

procurement, quoted delivery schedule vis-à-vis the delivery schedule incorporated in the tender enquiry etc,

being same / similar) in the manner detailed in the table below :

Price differential between L1 and L2 Quantity distribution ratio between L1 and L2

Up to 3% 60:40

More than 3% and up to 5% 65:35

More than 5% At least 65%on the L1 tenderer. For the quantity to be ordered on the L-2 tenderer, TC/TAA shall decide.

In the phrase „differential rates quoted by the tenderers‟, the quoted rate would mean:

i. When no price negotiation has been called for, the original rates as obtained at the time of tender opening. However, the rate of the highest eligible tenderer within the zone of consideration has to be per se reasonable.

ii. When price negotiation has been called for, the reference L1 rate for assessment of ratio will be the original rate of L1 firm (suitable for bulk quantity) – say firm "A" – as obtained at the time of tender opening.

1.24.3. If splitting of quantity is required to be done by ordering on tenderers higher than the L2 tenderer, then the quantity distribution proportion amongst the tenderers will be decided by transparent/logical/equity based extrapolation of the model as indicated in the above para.

1.24.4. There could be situation when between the lowest firm considered suitable for bulk qty (L1 firm "A") and another firm considered suitable only for part quantity. For example, say L1 firm "A" is Pt- I firm, L4 is Pt -I firm (and both considered suitable for bulk quantity order) and splitting is to be done between these two Pt -I firms. But there are two Pt- II firms in between who are suitable for part quantity. In such cases, L1 should be given its proportion based in its rate differential with respect to L4, (say by this, L1 gets 65% of NPQ). The balance quantity (say 35% of NPQ) is to be distributed among other firms. The balance quantity is to be distributed as follows:

(a) Allocate the Pt II L2 and Pt. II L3 within the overall ceiling of 15%/25% (of 35% of NPQ)

(b) Allocate the balance quantity to L4 firm.

Since the Pt II firms are being given the order in relation to its lower position w.r.t. L4 (Pt I firm), it will not attract the provision of 'order on Pt II firm should not be at a higher rate than Pt I firm', as the reference rate for comparison of L2 Pt II and L3 Pt II rate is the L4 Pt- I rate.

1.24.5. The rate of highest eligible tenderer within the zone of consideration has to be per se reasonable to the purchaser.

1.24.6. In the cases of inadequate capacity-cum-capability, dissatisfactory past performance, large quantity of outstanding orders (liquidation of which will take very long time) etc., the Purchaser shall have the right to distribute the procurable quantity amongst tenderers with due consideration to these constraints and in such a manner that would ensure timely supply of material in requisite quantity to meet the needs of operation, maintenance, safety etc. of the Railways, regardless of inter-se ranking of the tenderers and in a fair and transparent manner with due conformity to the principles of Natural Justice and Equity.

1.24.7. In cases of pre-decided splitting, if the purchaser decides not to split the ordered quantity, the reason for the same should be recorded in TC minutes/acceptance in direct acceptance cases.

1.24.8. Wherever the Railways have entered into ToT/JV agreement with one or more firms, they reserve the right to place orders on all such ToT/JV agreement partners. However, for ratio/proportion of quantity distribution among such agreement partners, conditions as detailed in Para 1.24.2, 1.24.3, & 1.24.4 with the exception of conforming to the condition “the rate of highest eligible tenderer within the zone of consideration has to be per se reasonable to the purchaser” shall apply.

1.25. Evaluation Criteria

1.25.1. For purpose of evaluation and comparison of offers, the purchaser will convert all Bid prices expressed in the amounts in various currencies in the Bid Price as payable, to the local the currency of the purchaser‟s country at the B.C. selling market exchange rate of the State Bank of India in India for similar transaction as on the date of Bid opening.

1.25.2. Evaluation Criteria: Offers in foreign currency, received on FOB or CFR basis will be evaluated in the following manner to arrive at total cost of the offers.

a) CIF cost will be calculated by adding freight as 1.8% for USA and 1.2% for other countries (in

case of FOB offers) & insurance charges as 0.030% of Cost & Freight. In case of CFR offers only

insurance charges will be loaded.


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b) Assessable value will be calculated by adding port/landing charges @ 1% of the CIF cost. Aggregate

Custom duty prevailing on the date of tender opening will be calculated on the assessable value and

the total landed cost will be worked out by adding the assessable value with the aggregate Custom

duty.

c) Thereafter freight @ 0.50% of FOB value for transporting the material from Kolkata to DLW/Varanasi

and other charges as livable such as LC opening charges @ 1% of the offer price/cost and required in

terms of tender conditions (viz training, installation and commissioning charges etc. as quoted, if any)

will be added to the total landed cost to arrive at the total cost of offer.

d) The total cost of the offer as calculated above with will be compared with the FOR destination price of

indigenous offer.

e) For example: - If a firm quoted unite rate as USD 100.00 each FOB (US Port), the calculation of

offer will be done in following manner.

Exchange rate is to be taken as the Bill selling market exchange rate, State Bank Of India in India for

similar transaction as on the date of bid document. In this illustration, it is taken as ` 55.00 per USD.

Particular @ of charges Value

Basic rate US$ 100 i.e. ` (55.00 x100.00) (FOB) ` 5500.00

Add Freight @ 1.8% ` 99.00

Add insurance @0.030% ` 1.68

CIF Price 5600.68

Port Charges @1% of CIF price ` 56.00

Custom Duty @ 28.852%* of (CIF + Port Charges) ` 1632.07

Inland Freight 0.50% of FOB value 27.50

LC Charges @1% of FOB Value ` 55.00

Total Value ` 7371.25

* Custom duty applicable at present.

1.25.3. Evaluation criteria not mentioned herein but mentioned specifically in the technical specifications will be

taken into consideration in the evaluation of offers.

1.25.4. Discounts with conditions attached such as discounts having linkages to quantity, early payment, early

Receipt Notes etc. will not be considered for evaluation purpose. Thus discounted rates, linked to quantities

and prompt payment etc., will be ignored for determining inter-se price ranking position. If a firm quotes

different rates for different quantity slabs, the highest of the rates so quoted will only be taken for

determining the inter-se price ranking position.

Though the rates without considering discounts with conditions attached and highest of the rates of different

quantity slabs shall only be considered for evaluation purpose, Railways may avail the discounted/lowest of

the slab rates, if otherwise firm's offer is found to be acceptable.

1.25.5. Even though the purchaser reserves the right to obtain the materials at any one or more of three Ports viz.

Kolkata, Mumbai and Chennai Port: evaluation of tenders will be done on CIF Kolkata basis, tenderers are,

therefore requested to quote accordingly.

1.25.6. Rates: Rate, taxes, duties, freight, un-conditional discount etc having financial implications must be quoted

on the financial rate page only (refer to instructions to tenderers for e-tenders). Remarks having financial

implications indicated elsewhere will not be considered for evaluation of offer. Tenderers must note that

financial offer made by them at the „Rate page‟ of the e-tender form is complete and final and it cannot be

revised, qualified or supplemented by any qualifying remarks elsewhere in their offer.


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1.25.7. Evaluation criteria for multi-consignee / multi-items tenders.

(a) Unless otherwise specified, the evaluation of tender will be done item wise and consignee wise.

(b) For multi consignee items, the rate should be quoted by firm on FOR Destination basis for each consignee separately. The inter-se ranking of the offers will be decided for each consignee separately.

(c) In tenders where schedule of requirement consists of several items, the inter-se ranking will be decided for each item separately. The firms are required to quote the rate for each item separately.

(d) In tenders where several items are grouped in a “KIT” or “SET” and the tendered quantity is in sets, the firm should quote single rate for the tendered kit/set of items. In such cases, the inter-se ranking shall be decided on the rate quoted by the firm for “Kit” or “Set” of items.

1.25.8. In cases where there is a change in statutory tax regime after the tender opening, all the offers shall be evaluated as per tax regime as applicable on the date of tender opening.

1.26. Items sourced from RCF/ RDSO/ ICF/ CLW/ DLW/ DLMW/ CORE approved vendors.

1.26.1. Wherever necessary as per policy of procurement and is so indicated in the tender schedule, regular purchase order for bulk quantity will be normally placed only on those firms who have been approved in Part-I category by the authorised vendor approving unit for respective items viz.: -

a. DLW, b. RDSO,

c. DLMW,

d. CLW,

e. RCF/KXN,

f. ICF,

g. CORE

1.26.2. The approval status of the firm will be reckoned as on the date of the tender opening and not thereafter

except in case of downgrading / removal / suspension / banning etc. after opening of tender, when changes shall be taken into account while considering the offer.

1.26.3. If the works address indicated in the offer is different from what is indicated in the approval certificate issued by the respective vendor approval agency, then such offer will be treated as if the same has been received from an unapproved source.

1.26.4. The ordered quantity on a part –II source, with competitive price ranking, can be considered for a quantity up to 15% of Net Procurable Quantity (NPQ) or the highest quantity, successfully executed by the firm against a single purchase order within the preceding 3 years, in the same railway unit or other Railway Unit/PUs, whichever is higher, subject to the condition that aggregate quantity ordered on all part-II sources put together shall not exceed 25% of the NPQ in a given procurement case.

1.26.5. A Part-II approved tenderer desirous of claiming more than 15% of the NPQ should submit attested photocopies of POs, inspection certificates and R-notes/Receipt Order related to the maximum quantity of the tendered item(s), successfully supplied by them against a single order placed on them over the preceding three years by any Zonal Railway/PU. Such tenderers are to note that non-submission of such documents shall be taken as their not having any such past performance and their offer shall be considered further as per extant rules and no back reference in this regard will be made to them. DLW however reserve the right to take into cognizance any data related to supply performance of the tendered item available with the DLW.

1.26.6. Unless otherwise specified an additional quantity equal to 5% of NPQ may be considered for developmental order on new source(s) in deserving cases and with strict compliance of extant procedure on such developmental ordering as per Para 1.27.1.2. A vendor approved for supply of a parent assembly shall be deemed to posses same approval status for all its child parts/ sub assembly provided they are the OEM of such child part/sub assembly and provided further that such child part/sub assembly does not appear as an independent item in the vendor directory.

1.26.7. Offers from authorized agents will be considered only if they submit tender specific authorization from the manufacturer, failing which their offer will be ignored summarily without making any further reference to them.

1.26.8. If an agent submit bid on behalf of the principal/OEM, the same agent shall not submit a bid on behalf of another Principal OEM in the same tender for the same item/product. In such cases both the bids of that agent will be summarily rejected.

1.26.9. In a tender either the Agent on behalf of the Principal/ OEM or Principal/ OEM itself can bid but both cannot bid simultaneously for the same item/product in the same tender. In cases where both principal/OEM and their agent participate in bidding for same item/product, any or both the bids shall be liable to be rejected.

1.26.10. Railway would prefer to deal with manufacture of stores directly and not with agent, brokers & middlemen. Manufactures are, therefore, encouraged to quote against the tender.


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1.26.11. Vendor Assessment (For Un approved tenderers): All unapproved tenderers are required to furnish detailed information as per Vendor Assessment form enclosed at Annexure - 4 except ITCC. They are also required to furnish following information.

a) Details of stocks of raw material held.

b) If they are a small scale unit regd. with National Small Industries Corporation Ltd., /New Delhi they

should furnish full particulars of items, registration, currency period and monetary limit etc.

1.27. Items for which no approved vendor list has been issued.

1.27.1. In such cases, for being eligible for a regular order(s) for quantity not less that 80% of NPQ, the tenderer must have „Relevant Past Performance‟ with Diesel Locomotive Works, Varanasi as defined in the following Para 1.27.1.1 Further, up to 20% of the NPQ may be ordered on new sources also, as developmental order(s), on the basis of „Capacity-cum-Capability‟ of the source as defined in Para 1.27.1.2.

1.27.1.1. Relevant Past Performance‟ for Regular Orders: A firm/ tenderer shall be considered to possess relevant past performance for satisfactory execution if they have been placed with a regular order in past or they have executed not less than 50% quantity against at least one Developmental Order placed by DLW, Varanasi in the last five years as on the date of tender opening.

The past performance for satisfactory execution shall mean and include performance in respect of any one of the following: -

(a) Tendered item, unless (b) or (c) is expressly specified in the tender schedule (b) Similar item, or

(c) Any of the tendered items as the case may be,

1.27.1.2. „Capacity-cum-Capability‟ for Developmental Order: For consideration of developmental orders, the

tenderers must be able to demonstrate their capacity-cum-capability to manufacture the tendered item. For

this purpose they should submit along with their offer, documented past performance reports of same or

similar items of equivalent rating or equivalent performance parameters, details of M&P, testing facilities,

QAP (If available), technical manpower available with them, registration for same/similar item(s) with other

Government agencies or PSUs etc. or any other details as may be warranted as per the technical

specification and Drawing. Such tenderers are to note that non submission of such documents as per

Annexure 4 shall be taken as their not having any such past performance and/or capacity, and their offer

shall be considered further as per extant rules and no back reference in this regard will be made to them.

Issue of Sample on return basis: Whenever demanded by the vendor and considered justified by DLW as an

expedient measure for development of item, DLW may issue a returnable sample after submission of

necessary financial security of adequate value along with non disclosure agreement (NDA) by the firm. The

sample so issued by DLW shall be deemed just "one of the many" and shall not be made a basis for any

change in the drawing/ specification post contract. Decision in regard to issue of sample will be sole

discretion of DLW and binding to firm.

1.27.2. Material to be procured from OEM or their authorized dealers / distributors:

(a) Wherever so specified, the Railways reserve the right to place orders for either entire or bulk quantity on OEMs or their authorized dealers.

(b) Any firm quoting on behalf of OEM must submit tender specific authorisation certificate or valid distributorship/dealership agreement as the case maybe, along with their offer and agree for inspection by the nominated agency (as the case may be) at the premises of their principals, failing which their offer shall be liable to be rejected. In a tender either the Indian agent on behalf of the Principal/OEM or Principal/OEM itself can bid but both cannot bid simultaneously for the same item/Product in the same tender.

(A) Any agent quoting on behalf of principal/OEM must upload the tender specific authorization at the time of tender itself failing which their offer is likely to be ignored without any further reference to them.

(B) In case the OEM/Principal and their agent both participate in same tender for same item, for the purpose of inter se position higher of the two offers will be considered though DLW reserve the right to avail lower of the two rates.

(c) The following would be preferred in such cases:

(i) Inspection by RITES/RDSO/Nominated agency at the manufacturing premises of the relevant manufacturer. RITES/RDSO/Nominated agency shall categorically confirm in the Inspection Certificate, that inspection of the material has been actually made in the manufacturing premises of the manufacturers and not in the warehouse/Godown/Shop of the dealer

(ii) Direct dispatch from the premises of the manufacturer to the Railways consignee after inspection


15

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and acceptance by RITES/ RDSO.

(iii) Submission of Manufacturer‟s Test and Guarantee Certificate with each lot of supply.

(d) One agent cannot represent two suppliers or quote on their behalf in the same tender and for the same item. Similarly, one OEM/Principal cannot appoint more than one agent in the same tender and for the same item.

(e) Railway would prefer to deal with manufacture of stores directly and not with agent, brokers & middlemen. Manufactures are, therefore, encouraged to quote against the tender.

1.28. Earnest Money Deposit (EMD):

1.28.1. All tenderers are required to pay EMD against advertised e-tenders subject to following exemptions:

(a) MSEs (Micro and Small Enterprises) registered with the agencies given in Para 1.15.1 above. (b) Vendors registered with the Railways up to the monetary limit of their registration for the items tendered /

trade groups of the items tendered. (c) Vendors on approved list of RDSO/PUs/CORE/Railways etc. for those specific items for which they are

on approved list. (d) Manufacturers and their accredited agents. (e) Other Railways, Govt. Departments.

1.28.2. The amount of EMD, to be furnished in global tenders, wherever applicable, is 2% of the offer value subject to an upper limit of:

(a) Rs 10 Lakhs for tenders valuing up to Rs 10 Crores and (b) Rs 20 Lakhs for tenders valuing above Rs 10 Crores.

1.28.3. Further, the upper limit on amount of EMD can be enhanced suitably for tender cases valuing beyond Rs 50 Crores which will be clearly specified in tender document as additional special condition to particular tender. The Earnest Money may be made in any of the following manners:

(a) Deposit in Cash (b) Government Securities to be valued at 5% below the market value. (c) Deposit receipt of any nationalized Bank. (d) Guarantee Bonds executed by any nationalized Bank as per Annexure 6 (e) Demand Draft of any nationalized Bank. (f) A deposit in Post Office Savings Bank. (g) National Savings Certificate. (h) National Defence Bond.

1.28.4. Validity of EMD: EMD should remain valid for a period of 45 days beyond the final bid validity period, which

should also be extended whenever bid validity is extended. No interest will be allowed on EMD.

1.28.5. Return/Refund of EMD:

i.The EMD of unsuccessful bidders will be returned to them within 30 days after expiry of final bid validity or decision of tender whichever is later.

ii. EMD will be refunded to the successful tenderers on receipt of Security Deposit or retained in the case of the successful Tenderer for adjustment towards the Security Deposit, as required towards due performance of the contract.

1.28.6. Forfeiture of EMD: When a tenderer undertakes to keep the offers valid for a certain period but either

withdraws the offer or revises the same within validity, the purchaser gets a right to forfeit the EMD.

1.28.7. The offers not accompanied by requisite EMD will be ignored summarily, unless falling in exempted category.

The firm claiming exemption from EMD should clearly indicate valid reasons for such claim duly attaching

scanned copies of relevant documents with their e-offers. The tenderers request for adjustment of EMD relating

to their earlier tenders will not be considered. They will have to deposit EMD afresh.

1.28.8. No interest will be payable by the purchaser on the Earnest Money/Bid Guarantee.

1.29. Security Deposit:

1.29.1. The usual security deposit, shall, be taken in case the contracts are placed on unregistered / unapproved

firms or for items for which a particular firm is not registered / approved. Tenderers are required to upload

scanned copies of necessary documents in support of claim for SD waiver, in case of such claim / request.

1.29.2. The amount of SD to be taken, wherever applicable, will be 10% of the total value of contract subject to upper

ceiling of Rs. 10 Lakhs for contracts valuing up to Rs. 10 Crore & Rs. 20 Lakhs for contract valuing above Rs.

10 Crores.


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1.29.3. Security deposit should remain valid for a minimum period of 60 days beyond the date of completion of all

contractual obligations of supplier. After completion of all contractual obligations, SD will be returned to the

successful supplier.

1.29.4. The successful Tenderers will be required to deposit Security Deposit with FA & CAO, Diesel Locomotive

Works, Varanasi as required by the Administration for proper fulfilment of the contract. The Security Deposit

may be made in any of the following manners:

(a) Deposit in Cash (b) Government Securities to be valued at 5% below the market value. (c) Deposit receipt of any nationalized Bank. (d) Guarantee Bonds executed by any nationalized Bank as per Annexure 12. (e) Demand Draft of any nationalized Bank. (f) A deposit in Post Office Savings Bank. (g) National Savings Certificate. (h) National Defence Bond.

1.30. Submission of Bills

1.30.1. Suppliers in their own interest, should observe following instructions to avoid delay in payment of their bills for materials supplied /despatched:- (I) Bill addressed to FA& CAO/ DLW Varanasi should be submitted in two copies marked „original‟ and

duplicate along with the consignee on the standard format of bill. Standard format of bills as per annexure- 17 & Enclosures and checklist are as per annexure 18, and also available on DLW's website. After accountal of material, The consignee will forward the bill to FA & CAO /DLW for making the payment.

(II) However, Where the condition of advance payment on proof of despatch is specified in the Purchase

Order the suppliers will submit advance payment bill (in duplicate) along with inspection certificate, proof of despatch/delivery including challan /invoice etc. as per terms of the contract directly to FA & CAO/Stores Bill Section, DIESEL LOCOMOTIVE WORKS VARANASI, endorsing a copy of the forwarding letter to the Controller of Stores as well as to the Consignee. The bills for balance payment should be submitted in the manner as indicated at (i) above for payment.

1.30.2. The supplier is also required to furnish the following certificate on their bill for advance payment:

“We have personally examined and verified and do hereby certify that stores in respect of which payment if being claimed have been actually dispatched under RR/PWB no ………….dt……and further these goods are the exact materials as indicated in challan No..…………dt…..and covered by inspection certificate no ……….dt…...We also certify that the above referred challan, RR/PWB and inspection certificate have been sent to consignee by Reg. Post/Speed post on …………..We shall hold ourselves personally responsible for correctness of this statement.”

1.30.3. The bill for payment should also be accompanied by the following certificate to be furnished by the Suppliers who are registered with excise authorities for availing MODVAT credit/VAT credit. “We certify that no additional duty set off on the stores supplied by us, have accrued under the MODVAT scheme in force on the date if supply, after we submitted quotations and submitted the present bill”.

1.30.4. The firm should submit their bills only for the supplies made by them during the scheduled delivery period or as extended from time to time. For supplies made after expiry of scheduled delivery period, firms should first obtain necessary extension of delivery period from the competent authority before submission of their bills.

1.30.5. Following Points should be observed by the suppliers while submitting the bills for payment:- (a) Consignee‟s name and Order reference should be given on the bill as well as in all correspondence in

connection therewith for facility of connecting the papers and arranging early payment.

(b) The firms are advised that bills for payment should only be submitted for the amounts permitted on the Purchase Orders and in case further amounts are claimed, an amendment should be obtained from the Controller of Stores, DIESEL LOCOMOTIVE WORKS, VARANASI, before bills are submitted.

(c) All Bills should be submitted in standard format as per Annexure-17, forms S-2817 in duplicate, marked „Original‟ and duplicate‟.

(d) The nomenclature of the material supplied shown in the bills should be strictly in accordance with description given in the purchase Order.

(e) The bills should be signed and pre- receipted with revenue stamp. All corrections should be attested. Fluid should not be used on the bill at all.

(f) Rate and Quantity should be mentioned both in figures and words.

(g) Status/category of bill should be mentioned i.e. whether Advance/ Balance/100%/PVC etc.


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(h) All Columns of Bill should be properly filled i.e., Vendor Code, Bank Account No. and Branch, Purchase Order No./Contract No., Date, PL No. etc.

(i) Wherever PVC is applicable, basis of PVC may be given, with relevant documents.

(j) Copy of Amendment letter issued by Store‟s Department, if any be enclosed.

(k) Transport Receipt/Challan for freight charges should be enclosed along with the bills.

(l) In case of submission of bills for 95% advance Payment, following documents should also be enclosed along with the bills.

(i) Receipted Delivery Challan duly signed by Gazetted Officer of the consignee/Clear Rly Receipt. (ii) Original Inspection Certificate. (iii) Excise Invoice (original- for buyer) wherever applicable. (iv) MODVAT declaration. (v) VAT declaration.

(m) In case of submission of bills for balance 5% payment or claim if 100% payment, the following documents be enclosed along with the bills:- (i) Receipt Note (ii) ED gate pass wherever applicable.

(n) All other relevant documents as per Contract provisions.

1.30.6. Payment through LC

1.30.6.1. When payment is made through letter of credit, LC opening charges will be on DLW account. Unless

otherwise indicated the payment will be negotiated within 21 days against documents as below:

i) Signed commercial invoice in quadruplicate (four copies) along with Contractor's detailed invoice

showing quantity, description/part no of the material as per contract, rates and total price of the

materials delivered FOB.

ii) Manufacturer's work test certificate issued by manufacturers.

iii) Non-negotiable Ocean Bill of Lading drawn in favour of port consignee CMM (BI), E.RIy. 3rd. floor, 3

Koilaghat street, Kolkata.

iv) Four copies of the packing list indicating contents of the materials (Description/Part No as indicated in

the purchase order and qty being dispatched), Box wise marking, net weight, gross weight and over all

dimension.

v) A certificate showing the country of origin of materials supplied.

vi) Certificate along with a copy of Fax stating that the original shipping documents have been forwarded

to the port consignee in India by Courier Services. Also copies of shipping documents viz. bill of lading,

country of origin, invoice, packing list and WTC have been sent to other agencies as per terms and

conditions of the contract. Documentary proof in the form of scanned/photocopy of postal/e-

mail/courier receipt should accompany the certificate.

vii) Certificate that the Dy. CMM (D)/DLW/Varanasi, Insurance Company and purchaser have been

advised of the closing particulars of shipment by e-mail/ Fax.

viii) Certificate that the firm shall comply with the warranty obligation under the contract pursuant to the

warranty.

ix) Certificate that supplies against previous Purchase Orders (POs), if any, has/have been completed

and there is/are no balance as on date while submitting the claim against subject PO.

1.31. Technical Information

1.31.1. Specifications indicated in the "Schedule of Requirements" may be obtained on payment from the following.

(i) Indian Railway Standard Specifications from

(a) The Controller of Publications, Civil Lines, New Delhi - 110054, India.

(b) Office of the High Commissioner for India, Publication Branch, India - House: Aldwyc, London-WC.

(ii) Indian Standard Specifications from

The Director General, Bureau of Indian Standards

Manak Bhawan, 9 Bahadur Shah Zafar Marg,


18

Section 1




New Delhi - 110001, INDIA

(iii) Particular Specifications, drawings and details from

The Controller of Stores,

Diesel Locomotive Works,

Varanasi (U.P.), India.

1.31.2. The equipments offered should be in accordance with the stipulated drawings and specifications in "Schedule of Requirements". Details of variations from the drawings and specifications, if any, should be clearly indicated and in such an event, a certificate from the users must be furnished to the effect that the product offered is and alternative acceptable to the users in the country of origin and in one or more other countries. The names of users in those foreign countries should also be indicated.

1.31.3. The purchaser may consider internationally accepted alternative specifications which ensure equal or higher quality than the specifications mentioned in the tender specifications. However, the decision of the purchaser in this regard shall be final. In this connection attention of tenderer is invited to the "Statement of Deviations" from tender specifications (Annexure-11) which should invariably be filled in and submitted along with the offer and further two copies of the alternative specifications offered should be sent along with the offer.

1.32. Agents and facilities in India— Agency Commission

1.32.1. Railway would prefer to deal with manufacture of stores directly and not with agent, brokers & middlemen.

Manufactures are, therefore, encouraged to quote against the tender.

1.32.2. Foreign firms quoting direct against the enquiry and who want Indian Agent/Associates and/or servicing

facilities in India should indicate in their offer the name of their Indian Agents/Associates or the

representatives they have for servicing in India, They should quote net FOB/ CFR price, exclusive of the

amount of remuneration or commission provided for the Indian Agents/Associates, It should be understood

that the purchaser will indemnify the supplier against payment of such commission to the Indian

Agents/Associates in rupees in India in respect of a contract arising out of invitation to Tender, where the

Indian Agent/Associates remuneration/or commission covers a part of the price against the Tender."

1.32.3. The following particulars are also required to be furnished by Tenderers failing which their offers are liable to

be ignored :-

(i) The precise relationship between the foreign manufacturers/principals and their Indian

Agent/Associates,

(ii) The mutual interest which the manufacturers/principals and the Indian Agents/Associates have in the

business of each other.

(iii) Any payment which the Agent/Associate receives in India or abroad from the Manufacture/principal

whether as a commission for the contract or as a general retainer fee;

(iv) Indian Agent's Income-tax payment account number;

(v) All services to be rendered by the Agent/Associate whether of general nature or in relation to the

particular contract and the facilities/infrastructure available with them for the same.

1.32.4. The Agency commission payable by the Tenderer to his Indian Agents shall be indicated in the offer form in

foreign currency. However, Agency commission finally payable to the Tenderers agents in India under the

contract will be converted to Indian rupees at the telegraphic transfer buying rate of exchange ruling on the

date of issue of PO and shall not be subject to any further exchange variation. The agency commission shall

be paid in non-convertible Indian rupees only after successful completion of the contract commissioning of

the machines or equipment wherever involved.

1.32.5. For the foreign Tenderer's guidance in furnishing complete information, a check list, as per Annexure- 15

attached, must be completed and submitted by the foreign Tenderers participating in the Tender.

1.32.6. The amount of agency commission payable to the Indian agent will not be more than what is specified in the

agency agreement between the tenderer (i.e. the foreign principal) and the Indian agent. A certified

photocopy of the agency commission agreement must be submitted along with the offer.

1.32.7. The Indian agent will be required to submit a certificate, along with their Agency commission Bill, confirming

that the amount claimed as Agency commission in the bill has been spent/will be spent strictly to render

services to the foreign principal, i.e. M/s................ (i.e. the contractor) in terms of agency agreement. The

purchaser or their authorized agencies and/or any other authority of Govt. of India shall have rights to


19

Section 1




examine the books of the Indian Agent and defect or misrepresentation in respect of the afore indicated

confirmation coming to light during such examinations will make the foreign principal

(i.e. the contractor) and their Indian agent liable to be banned/suspended from having business dealing with

Indian Railways, following laid down procedure of such banning/suspension of business dealings.

1.33. Local Conditions

1.33.1. It will be imperative on each tenderer to fully acquaint himself of all the local conditions and factors which

would have any effect on the performance of the contract and cost of the stores. In his own interest, the

foreign tenderer should familiarize himself with The Income Tax act. 1961, The Companies Act. 1956, The

Customs Act. 1962 and related Laws in force in India. The purchaser shall not entertain any request for

clarifications from the tenderer regarding such local conditions. No request for the change of price, or time

schedule of delivery of stores shall be entertained after the offer is accepted by the purchaser.

1.34. Shipping Arrangement

1.34.1. In the event of an order being placed on CFR basis, the contractor shall make his own arrangements for

shipment of material. The purchaser will, however, have the right to change over the contract to FOB basis,

if considered necessary after giving one month's notice to the contracting firm. Shipping arrangements in the

case of FOB contract shall be made by the agency nominated by DLW in accordance with details given in

Annexure-9. Particulars of cargoes for which shipping space will be required in the execution of contract

should be furnished in detail (as per Annexure-10) to the Controller of Stores, Diesel Locomotive Works,

Varanasi-221004, (India) as soon as possible after the relevant contract is finalized.

1.35. Spare Parts

1.35.1. Where required, the tenderer should quote, apart from main equipment, separately for the mandatory spares

as well as for recommended spares required for two years of operation. The rates for such of the items of

those spares should be indicated both in FOB and CFR basis in the case of the imported offers and FOR

destination in the case of indigenous offers with complete break-up as indicated in the offer form. The

purchaser reserves the right to order any or all the spares as quoted for any quantity considered reasonable

by him at the prices quoted by the tenderer and on the terms and conditions quoted for the main equipment.

The responsibility of the tenderer under the warranty clause will not be diluted in any way on this account.

1.36. Miscellaneous

1.36.1. In case tenderer himself is not the manufacturer of the item, valid authorisation, certificate must be

submitted alongwith offer otherwise offer is liable to be rejected.

1.36.2. Proforma quotation of principal is to be attached with the offer.

1.36.3. Tenderer must clearly indicate make & model no. of item offered and also submit detailed specification.

Leaflets/catalogues marking the offered model, specifically, failing which the offer is likely to be ignored

without any further reference to firm.

1.36.4. Firms must give specific comments/confirmation to each and every aspect to specification and clearly

indicate compliance/non-compliance. In absence of their, offer will be taken as incomplete & the same may

be passed over without any further reference to you.

1.36.5. Tenderers/suppliers while quoting in the tender as well as submitting their invoice/bill they should indicate

the freight charges separately from the price of the goods.

1.36.6. Government price preference policy :

“The Purchaser reserves the option to give a purchase/price preference to the offer from public Sector units

and/or from small scale/cottage industries units, over those from other firms, in accordance with the policies

of the government from time to time. Tenderer should produce policy letter from Govt. of India to avail price

preference. The price preference above cannot however be taken for granted and every endeavor need to

be made by them to bring down cost and achieve competitiveness”.


20

Section 1




1.36.7. a) Tenderer has to purchase stamp-paper from the govt. treasury office for all requirements in this tender

i.e. EMD, PBG, WBG as applicable.

b) A confirmatory letter has to be given by the tenderer that stamp-paper has been purchased from

Government Treasury office (Name.................................................)

1.36.8. a) Tenderer to give consent in a mandated form for receipt of payment through ECS/EFT :- “We hereby

authorize the purchaser to make payment in respect of supplies made and bills cleared through

electronic transfer.”

b) Tenderer to provide the details of Bank A/C in line with RBI guidelines for the same. These details will

include Bank Name, Branch Name & Address, Account type, Bank A/C No. and Bank and Branch code

as appearing on MICR cheque issued by bank.

c) Tenderer to attach certificate from their bank certifying the correctness of all above mentioned

information (as mention in para (ii) above.)

1.36.9. "All safety provisions and other precautions as detailed in clauses of OHSAS 18001:1999 must be ensured

by visitor (s)/contractor (s) or his (their) authorised agent (s) e.g. Safety Shoes (foot gear), Safety Helmet

(head gear), Mask (face gear), Ear Plugs/Muffs (face gear), as applicable from place to place inside the

shop."

21

Section 2 Annexures


Bid Document for Global Tender General Conditions of Contract

Section 2

General Conditions of Contract

2.1 Definitions

2.1.1 Throughout these conditions and in the specifications, the terms :- "Contractor" means the person, firm or

company with whom the order for the supply is placed and shall be deemed to include the contractor's

successors (approved by the purchaser), heirs, executors, and administrators, as the case may be, unless

excluded by the terms of the contract.

2.2 Executions

2.2.1 The whole contract is to be executed in the most approved, substantial and workmanlike manner, to the

entire satisfaction of the purchaser or his nominee, who, both personally and by his deputies, shall have full

power, at every stage of progress, to inspect the stores at such times as he may deem fit and to reject any

of the stores, which he may disapprove, and his decision thereon, and on any question of the true intent the

meaning of the specifications shall be final and conclusive.

2.3 Responsibility of the contractor for executing contract

2.3.1 Risk in the Stores : The contractor shall perform the contract in all respects in accordance with the terms

and conditions thereof. The Stores and every constituents part thereof, whether in possession or control of

the contractor, his servants or a carrier, or in the joint possession of the contractor, his servants and the

purchaser, his servants, shall remain in every respect at the risk of the contractor until their actual delivery to

the consignee at the stipulated place or destination or where so provided in the acceptance of tender, until

their delivery to a person specified in the "Schedule of Requirements", as interim consignee for the purpose

of despatch to the ultimate consignee. The contractor shall be responsible for all loss, destruction, damage

or deterioration of or to the stores from any cause what-so-ever while the stores after approval by the

inspector are awaiting despatch or delivery or are in the course of transit from the contractor to the

consignee, or the interim consignee as the case may be. The contractor alone shall be entitled and

responsible to make claim against Railway Administration or any other carrier in respect of non-delivery,

short delivery, misdelivery, loss, destruction damage or deterioration of the goods entrusted to such carrier

by the contractor for transmission to the consignee or the interim consignee as the case may be.

2.4 Indemnity

2.4.1 The contractor shall at all times indemnify the purchaser against all claims which may be made in respect of

the said work for infringement of any right protected by patent registration design or trade mark; provided

always that in the event of any claim in respect of an alleged breach of a patent registered or trade mark

being made against the purchaser he shall notify the contractor of the same and the contractor shall be at

liberty, but at his own expense, to conduct negotiations for settlement of any litigation that may arise

therefrom.

2.5 Declaration for infringement of IPR by tenderer/supplier

2.5.1 All prospective manufacturer or supplier shall note that:

2.5.2 DLW/Indian Railways shall not be responsible for infringement of patent rights arising due to similarity in

design, manufacturing process, use of similar components in the design & development of this item and any

other factor not mentioned herein which may cause such a dispute. The entire responsibility to settle any

such disputes/matters lies with the manufacturer/ supplier. DLW stands indemnified for claims whatsoever

arising out of such issues.

2.5.3 Details/design/documents given by prospective tenderer shall not infringe any IPR and they are responsible

in absolute and full measure instead of DLW/Indian Railways for any such violations. Data, specifications

and other IP as generated out of interaction with railways shall not be unilaterally used without the consent

of DLW and right of Railways / DLW on such IP is acceptable to them.

2.6 Prices

2.6.1 The Prices stated include all costs of stamping, painting, marking, protection or preservation of the stores.

Any claim what-so-ever that may arise from the manufacture, packing, shipment, marking, or delivery of

Dock and Harbour dues, port's rates, export taxes and other fees or charges, if any levied because of

22

Section 2 Annexures



exportation. The prices stated are also to include all rights (if any) of patent, registered design or trade mark

and the contractor shall indemnify the purchaser against all claims in respect of the same.

2.7 Sales Tax / Value Added Tax (VAT) / CST:

2.7.1 The Sales Tax / VAT / CST, with Surcharge thereon, if any, in exact percentage should be shown clearly in the offers as applicable for the Consignees. Tenderer must note that no concessional tax forms like form 'C' or form 'D' shall be issued by DLW. In case an offer is received with purported concessional CST/VAT against the erstwhile Form‟C‟ or Form „D‟, only the quoted percentage of such tax will be considered for payment notwithstanding the fact that no Form‟C‟ or Form „D‟ shall be issued by DLW .

2.7.2 The supplier, while submitting their bill for payment, should declare that "It is certified that the Sales Tax / VAT / CST as claimed is legally payable by buyers and has been paid / will be paid by us to the Sales Tax Authorities”.

2.7.3 While quoting for VAT, tenderer should pass on (by way of reduction in prices) the set off / input tax credit that would become available to them by switching over to the system of VAT from the existing system of sales tax duly stating the quantum of such credit per unit of the item quoted for. The tenderer while quoting their rates for tenders should give the following declaration: “We agree to pass on such additional set off / input tax credit as may become available in future in respect of all the inputs used in the manufacture of the final product on the date of supply under the VAT scheme by way of reduction in price and advise the purchaser accordingly”.

In all cases, supplier will furnish the following certificate, while claiming payment, to the payment authority:

“We hereby declare that additional set offs / input tax credits to the tune of Rs………….has accrued and accordingly, the same is being passed on to the purchaser, and, to that effect, the payable amount may be adjusted.”

However, submission of the digitally signed tender document without specifying deviation with regard to above shall be deemed as submission of aforesaid declaration.

2.7.4 Any statutory variation in Sales Tax / VAT / CST variation in future is liable to be admissible within original delivery period only subject to production of documentary evidence and Govt. notifications, and, subject to indication of the same in firm‟s offer and contract.

2.7.5 Where the firm quotes all-inclusive price without mentioning any taxes at present or in future, and, have also not quoted with Statutory Variation Clause, the firm shall have to bear the future variations, in all such cases. In case of Sales Tax being inclusive, exact rate of tax is to be indicated, failing which Sales Tax will be calculated as per rule.

2.8 Excise Duty:

2.8.1 If Excise Duty (ED) is being charged extra, then the tenderer should clearly indicate the exact rate of ED applicable in their offer.

2.8.2 Any statutory variation in ED will be admissible within original Delivery Period only subject to documentary evidence and Govt. notifications, subject further to indication of the same in firm‟s offer and contract.

2.8.3 If concessional ED is applicable at the time of quoting, the same should be indicated clearly along with maximum rate of ED payable. In case, it is stated by the bidder that ED as applicable at the time of supply will be charged extra, their offer will be evaluated on the basis of maximum rate of ED, which may become applicable. However ED will be reimbursed at actual only. In no case, the variation in ED due to increase in turnover and misclassification during the currency of contract will be admissible.

2.8.4 ED will be reimbursed subject to documentary evidence and Government Notifications only. In determining the cost of an excisable product covered by the MODVAT scheme under section 4(1) (b) of the Act, read with Rule 6 of the valuation rules, the excise duty paid on raw material also covered under MODVAT scheme is not to be included, i.e. Excise Duty paid on raw material, if MODVAT, is not to be included in determining the cost of production of excisable product.

2.8.5 If the quoted rate is inclusive of ED, the tenderer must indicate the rate of ED clearly. If it is not done so, the offer will be taken as inclusive of ED at the highest rate quoted by any of the participants in the tender batch.

2.8.6 Payment of Excise Duty / MODVAT Rules:

2.8.6.1 When ED is quoted “Extra” the reimbursement of the same shall be made only against documentary evidence of actual payment of ED by the firm on the basis of Gate Pass. However if the ED is quoted as “Inclusive”, the component of ED has to be shown separately in the Bill duly enclosing the Excise document for its reimbursement.

2.8.6.2 The purchaser will not be responsible for payment of taxes and duties paid by the supplier under misapprehensions of law or misclassification.

2.8.6.3 The claim for ED on each bill should be supported by the following certificates.

(a) The rate of ED is ad-valorem. The ED at present legally leviable in this case is Rs ……i.e. % of Rs. being

23

Section 2 Annexures



the unit value of the Stores assessed by the concerned authority of the Excise department.

(b) Certified that the ED charged on this bill is not more than that legally leviable and payable under the provision of the relevant act or rules made there under.

(c) Certified that the amount of Rs __ claimed as ED in this bill is in accordance with the Provision of the rules in all respects and the same has been actually paid to the excise authorities in respect of the stores covered by the bills.

2.8.7 MODVAT Certificate:

The tenderer will have to submit the following certificate in their offer: -

"We hereby declare that in quoting the above price, we have taken into effect, the full effect of the duty set-often „Central excise and countervailing duties' available under the existing MODVAT scheme. We further agree to pass on such additional duties and set off as may become available in future in respect of all the inputs used for the manufacture of the final product, on the date of the supply under MODVAT scheme, by way of reduction in price and advise the purchaser accordingly.”

However, submission of the digitally signed tender document without specifying deviation with regard to above, shall be deemed as submission of aforesaid declaration.

2.9 Octroi Duty/ Other statutory levies:

2.9.1 The purchaser will not bear any Octroi charges, and if required will issue Octroi exemption certificate only, wherever applicable. In event of Octroi Exemption certificate not being honoured by the concerned Municipal authority, and Octroi charges become payable, the supplier will have to bear the Octroi charges in terms of IRS Conditions of Contract.

2.9.2 Tenderers must familiarize themselves about all the applicable taxes & duties, and in case the same is not indicated explicitly in their offer the same will be considered as inclusive. Any liability on such account will be payable on firms account.

2.10 Transfer and Subletting

2.10.1 The contractor shall not sublet (otherwise than that which may be customary in the trade concerned),

transfer assign or otherwise part with directly or indirectly to any person or persons, whatever is in this

contract, or any part thereof without the previous written permission of the purchaser or his nominee.

2.11 Drawings

2.11.1 If any figure of a drawing differ from those obtained by scaling the drawings, the figured dimensions shall be

taken as correct.

2.12 Alterations

2.12.1 The purchaser or his nominee may require such alteration to be made on the work during its progress as he

deems necessary. Should these alterations be such that either party to the contract considers an alteration

in price justified, such alteration shall not be carried out until amended price have been submitted by the

contractor and accepted by the purchaser. Should the contractor proceed to manufacture such stores

without obtaining the consent in writing of the purchaser to an amended price, he shall be deemed to have

agreed to supply the stores at price as may be considered reasonable by the purchaser.

2.13 Alteration Of Specifications, Patterns And Drawings

2.13.1 The purchaser reserves the right to alter from time to time; the specifications, patterns and drawings and from the date that may be specified by him the articles shall be, in accordance with the specifications, patterns and drawings, so altered. In the event of any such alteration involving an increase or decrease in the cost or in the period required for production, a revision of the contract price and of the time fixed for delivery shall be made in relation to the articles of the alterations. The decision of the purchaser on the question, whether the alteration involves an increase or decrease in the cost or in the period required for production shall be final and conclusive.

2.14 Progress report

2.14.1 The contractor shall render such reports as to the progress of the contract and in such form as may be called by the purchaser or his nominee. The submission and acceptance of those reports shall not prejudice the rights of the purchaser in this Contract in any manner.

2.15 Delivery

24

Section 2 Annexures



2.15.1 Terms of Delivery for indigenous supplier:

2.15.1.1 Mode of dispatch should be preferably by road / personal courier service, directly to the respective consignee.

2.15.1.2 Suppliers should clearly quote the FOR Conditions - whether station of dispatch or destination. If firm‟s offer is not FOR Destination, then applicable freight charges should invariably be indicated under the „Freight‟ column in the rate page. In the event, any Tenderer does not specifically indicate anything about the place of delivery in his offer, it will be assumed that the offer is for delivery at the destination and the Tenderer will bear the freight. This assumption will be final and binding on the Tenderer and will not be subject to any legal dispute or arbitration in future.

2.15.1.3 Responsibility to cover the risk of loss, destruction, damage or deterioration etc. of goods till delivery to consignee including risk in transit and/or transportation shall rest with the supplier in terms of Clause 1501 of IRS Conditions of Contract.

2.15.2 Terms of Delivery for foreign supplier:

2.15.2.1 a) Delivery in FOB contract: The stores shall be delivered by the contractor free on board such vessels in such port or ports named in the quotation, as the purchaser or his nominee may require.

b) Such number of inspection certificates, advice notices, packing accounts and invoices, as may be required by the purchaser or his nominee, shall be furnished by the contractor at his own cost.

c) Freight for the conveyance of the stores or any part thereof will be engaged by the purchaser or his nominee, who will give due notice to the contractor about availability of vessels. Should the stores or any part thereof be not delivered within 7 days of the receipt of such notice by the contractor, the contractor will be liable for all payments and expenses that the purchaser incur or be put to, by reason of such non-delivery including dead and extra freight demurrage of vessels and any other charges incurred by the purchaser whatsoever.

2.15.2.2 Delivery terms in CIF: The stores shall be delivered free of expense to the purchaser on board the vessels for ocean transportation to the named Indian Port, including any charges for unloading at the said port as also marine Insurance covering transit risk upto the ultimate destination being paid by the supplier. The supplier shall be free to ship the goods by vessels registered in any eligible source under World Bank Guideline or through a shipping conference in which such eligible sources hold a major share.

2.15.2.3 a) The supplier may be asked to supply the material via Air/Sea shipment wherever it is cheaper/convient to the purchaser.

b) If the material is dispatched by the air, for part/full quantity at DLW‟s cost/ firm‟s cost, firm shall also submit authority letter issued by DLW in the form of Scanned/Photocopy of modification advice to purchase order, for doing so, in addition.

2.16 Extension of Delivery Period, Liquidated Damages and Denial Clause:

2.16.1 Timely delivery is required in terms of the condition of contract. The purchaser attaches the utmost importance to timely deliveries and requests the manufacturers to take note of the liquidated damages and risk purchase conditions as are applicable in case of delays in supplies.

2.16.2 In cases where only a portion of the stores ordered is tendered for inspection at the fag end of the delivery period and also in cases where inspection is not completed in respect of the portion of the stores tendered for inspection during the delivery period because of the reason that adequate notice for inspection in accordance with clause 2.24.2.1 of General conditions of Contract was not given by the contractor, the purchaser reserves the right to cancel the order for the balance quantity, at the risk and expense of the contractor without any further reference to him. If the stores tendered for inspection during or at the fag end of the delivery period are not found acceptable after carrying out the inspection, the purchaser is entitled to cancel the contract in respect of the same at the risk and expense of the contractor. If however, the stores tendered for inspection are found acceptable the purchaser may grant an extension of the delivery period subject to the following conditions.

2.16.3 The contractor is to execute the purchase order in accordance with the terms and conditions of the order within the stipulated Delivery Period. However, in the event of failure to do so, the purchaser, on its sole discretion, may grant extension in delivery period and in such cases the purchaser has the unfettered right to recovered from the contractor, not by the way of penalty, under the provision of clause 0702 (a) of I.R.S Conditions of Contract, Liquidated damages on the store which the contractor has failed to deliver within the period fixed for delivery. In case of such extension, provision under following Para 2.16.4 to 2.16.6 shall apply.

2.16.4 That no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, Sales Tax, or on account of Foreign Exchange Variation or on account of any other tax or duty leviable

25

Section 2 Annexures



in respect of stores specified in the contract which takes place after the date of delivery period stipulated in the contract shall be admissible on such of the said stores as are delivered after the date of the delivery stipulated in the contract.

2.16.5 That notwithstanding any stipulation in the contract for increase in price on any other ground no such increase which takes places after the date of delivery stipulated in the contract shall be admissible on such of the said stores as are delivered after the expiry of the delivery period stipulated in the contract.

2.16.6 But nevertheless, the purchaser shall be entitled to the benefit to any decrease in price on account of reduction in or remission of Custom Duty, Sales Tax or on account of Foreign Exchange Variation or on account of any other tax or duty or on other ground as stipulated in the price variation clause, which take places after the expiry of the date of delivery period stipulated in the contract.

2.16.7 In the event of the contractor's failure to have stores ready for delivery by the time or times respectively specified in the letter of acceptance or contract, the purchaser may withhold any payment until the whole of the stores have been fully supplied or delivered and may deduct or recover from the contractor as liquidated damages (and not by way of penalty), a sum at the rate of 2 percent (two percent) or the price of any stores which the contractor has failed to deliver as aforesaid for each and every month (part of a month being treated as a full month) during which the stores may not be ready for delivery subject to maximum of 10% of value of delayed supplies. Provided, however that if the delay shall have arisen from any cause which the purchaser may admit as reasonable ground for further time, the purchaser may, at his discretion, allow such additional time as he may consider to have required by the circumstances of the case and shall forego the whole or such part, as he considers reasonable of his claim for such loss or damage as aforesaid.

2.17 Time Preference Clause

2.17.1 It should be noted that if a contract is placed on a higher tenderer as a result of invitation of tender, in

preference to a lower acceptable offer, in consideration of offer of earlier delivery, the contractor will be liable

to pay the Railway (the purchaser) the difference between the contract rate and that of the lowest

acceptable tender on the basis of final price F.O.R. destination including all elements of freight, Sales Tax,

Local taxes, duties and other incidentals, in case of failure to complete supplies in terms of such contract

within the date of delivery specified in tender and incorporated in the contract. This is in addition and without

prejudice to other legal rights available to the purchaser under the terms of contract.

2.18 Default and Risk Purchase:

2.18.1 Should the contractor fail to have the stores ready for delivery by the time or times agreed upon as

aforesaid, or should the contractor in any manner otherwise fail to perform the contract, the purchaser shall

have power to declare the contract at an end at the risk and cost of the contractor as provided in every way.

In such a case, the contractor shall be liable for any expenses, losses or damages which the purchaser may

be put to incur or sustain by reason of or in connection with the contractor's default.

2.18.2 In the event of risk purchase being made against the contract the contractor will be liable to pay to the

purchaser extra expenditure incurred i.e. in procuring the same or similar stores and/or equipment the

difference between the rate quoted by the lowest acceptable tenderer against the tender and that at which

the risk purchase contract is concluded, provided it is done within nine (9) months from the date of breach of

the contract.

2.18.3 The cancellation of the contract may be either whole or part of the contract at purchaser's option. In the

event of the purchaser terminating this contract in whole or in part, he may procure upon such terms and in

such manner as he deems appropriate, supplies or services similar to those so terminated, if risk purchase

is not rendered possible for any reason in which event the contract shall be liable to the purchaser for any

excess costs for such similar supplies/or services. However, the contractor shall continue the performance

of this contract to the extent not terminated under the provisions of this clause.

2.18.4 Railway reserves the right to delete “Risk Purchase Clause”, in supply contracts, where 10% SD money has

been taken. Whenever such contracts are defaulted, security deposit shall be forfeited. However, cases

where 10% SD has not been levied, Risk Purchase option will be available to the purchaser as per existing

provisions contained in Para 702 (b) 5 of IRS Conditions of Contract.

2.18.5 DLW however reserves the right to cancel the contract with GD instead of taking recourse to risk purchase.

2.18.6 DLW's decision whether to cancel the purchase order after levy of GD or to go for R.P. shall be final and

binding.

2.19 Time for Making Risk Purchase

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Section 2 Annexures



2.19.1 Whereas this will be governed by the relevant clauses of IRS Conditions of Contract, such Risk Purchase

shall be normally made within 9 months from the date of breach of Contract.

2.20 Customs drawback

2.20.1 If, by reason of a customs notification published after the placing of the contract, the stores to be supplied

shall become, on export, subject to customs drawback in respect of duty paid on them or on the materials

used in their manufacture the contractor shall recover the amount of the drawback and the contract price of

the stores shall be reduced by the amount so recovered.

2.21 Supply of drawings, tracings and specifications

2.21.1 Any drawings, tracings or descriptions specified shall, unless otherwise directed, be furnished by the

contractor with the first consignment of the work to which they relate and no payment whatsoever will be

made until such drawings, tracings or descriptions have been furnished to the satisfaction of the purchaser.

2.22 Packing

2.22.1 The items tendered will have to undergo arduous transportation before reaching the destination and will

have to be stored and handled in tropical climate conditions (including monsoons) before they are put to the

actual use. it is therefore, imperative that packing for every items is decided by taking into consideration,

inter - alia, the above vital factors, so as to eliminate damage/deterioration of items in

transit/transhipment/handling or during storage.

2.22.2 The specification of the packing proposed shall be indicated.

2.22.3 The packing advices should bring out the weight, dimensions and size of each bundle/package. Where it is

not possible to give weight of the bundles/packages, the contractor must indicate the volume to the

bundles/packages, the number pieces per bundle/package, number of bundles/packages, and total weight of

the items supplied.

2.22.4 Where the materials are shipped in bundles/packages the pieces in each bundles/package should be of

uniform sizes to facilitate quick acceptance and payment. The number of pieces in each bundle/package

should also be the same. Where materials are to be supplied in bundles, the gross weight should not exceed

1.9 metric Ton per bundle for shipments to Indian Ports.

2.22.5 The technical requirement of packing of material will be as stipulated (if any) in relevant

Specification/Drawing.

2.23 Marking

2.23.1 The marking of all goods supplied shall comply with the requirements of the Indian Acts relating to

merchandise marks or any amendment thereof and of the rules made thereunder. The following marking of

the materials is required:

(a) The following particulars should be stenciled with indelible paint on all the materials/packages supplied

loose:

(i) Contract number

(ii) Specification No.

(iii) Item No.

(iv) Port consignee

(v) Abbreviated consignee marks

(b) The marking as in (a) above should be on lables securely clamped to the packages or bundles so as to

break loose during transit. The use of steel tags for this purpose should be avoided.

(c) In addition to the markings as specified above, distinguishing colour marks should be given so as to

distinguish the ultimate consignee in India.

2.23.2 The technical requirement of marking on material will be as stipulated (if any) in relevant

Specification/Drawing.

2.24 Inspection

2.24.1 Inspection of Stores from Indigenous Suppliers:

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2.24.1.1 Stores are to be inspected by an Inspecting Agency indicated in the tender, only at the manufacturer‟s works

before dispatch, unless specified otherwise. Firms are expected not to offer/seek any deviation from the

Inspecting Agency indicated in the tender/contract.

2.24.1.2 In case the firm fails to offer the material for inspection against inspection call issued to inspecting agency or

if the material have to be re-inspected due to rejection of the material at firm‟s premises by inspecting

agency or due to non dispatch of material within validity of inspection certificate, then the inspection charges

applicable for the offered quantity and actual test charges incurred will be paid by the supplier to inspecting

agency.

2.24.1.3 In case, the purchase orders are placed on traders / agents for the items, which are peculiar to the Railways,

traders / agents should indicate the source of supply and inspection to be carried out at their manufacturer‟s

premises rather than traders‟/agents‟ premises, to ensure genuineness of quality of the materials. Above

conditions will not be applicable for the items where inspection is being carried out against WTC/MTC/GC or

by the Consignee in view of urgency.

2.24.1.4 Test Certificates: It is obligatory for the successful tenderer to furnish the manufacturer‟s Test Certificate or

any other Test Certificate specified in the specification along with the supply of stores. In the event of their

inability to furnish the Test Certificate, the cost of the test to be carried out will be to the tenderer‟s account.

2.24.1.5 An approved firm has to note that, unless stated otherwise in a purchase order, pre-dispatch inspection shall

be carried out at their work‟s address indicated in the approval certificate.

2.24.1.6 Details of inspection clause and consequences of rejection shall be governed by detailed instructions

pertaining to inspection/warranty replacement as per Annexure 21.

2.24.1.7 Inspection Clause:

A) For DLW controlled items (under Para- 1.26.1.a)

a) For Developmental / First Order : - Prototype inspection by authorized representative/ agency of CDE/

DLW. Remaining qty. by CQAM / DLW at DLW, By RITES at firm‟s premises

b) For Regular/Trial Orders : - By RITES or CQAM / DLW at DLW.

B) For RDSO Controlled Items (under Para- 1.26.1.b)

a) Category I Items–RITES / CQAM / DLW.

b) Category II Items- QA (Mech.) Directorate of RDSO.

c) Category III Items- The first lot is essentially to be inspected by concerned Directorate of RDSO and

balance qty. by RITES /CQAM / DLW.

C) For all materials to be accepted against WTC: “Firm is to provide original ink-signed Works Test Certificate

(WTC) in DLW‟s Standard Format (Annexure-14). Firm is to also provide authenticated copies of Internal

Test Certificate along with the supplies.

D) Railway may deface the rejected material.

E) In case the firm fails to offer the material for inspection against inspection call issued to the inspecting

agency or if the material has to be re-inspected due to rejection of the material at firms premises by the

inspecting agency or due to non despatch of material within validity of Inspection Certificate, then 50% of the

inspection charges applicable for the offered quantity subject to maximum of Rs 5,000/- and actual cost of

the test charges incurred, will be paid by the supplier to the inspecting agency.

F) Traders/ authorized agents are required to offer material for inspection at manufacturer‟s premises only.

G) Final inspection and acceptance of the supplied material will be done by the Consignee after receipt of the

material.

H) Whenever inspection has been allowed with firm's Work Test Certificate (WTC) payment shall be 100% against receipt and acceptance of the material (Receipt Note) unless laid down otherwise.

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2.24.2 Inspection of Stores from foreign sources: In addition to the above (inspection of stores from indigenous

sources), following will be specifically applicable for the supplies from foreign sources.

2.24.2.1 Inspection will be carried out by the purchaser or his nominee. The cost of inspection will be on purchaser's

account subject to other provisions herein contained. At least four weeks‟ notice must be given to the

inspecting authority to enable him to arrange the necessary inspection.

2.24.2.2 Facilities for Test and Examination

a) The contractor shall provide, without extra charge all materials, equipments, tools, labour and

assistance of every kind which the purchaser or his nominee may consider necessary for and tests and

examinations which he or his nominee shall require to be made on the contractor's premises and shall

pay all costs attendant thereon.

b) The contractor shall also provide and deliver free of charge, at such places as the purchaser or his

nominee may nominate such materials as he or his nominee may require for test by chemical analysis

or independent testing machines. The cost of any such test will be defrayed by the purchaser unless it

is stated in the specification that it is to be paid by the contractor.

2.24.2.3 Notification of Result of Inspection

Unless otherwise provided in the specifications or "Schedule of Requirement" the examination of stores will

be made as soon as practicable after the same have been submitted for inspection and the result of the

examination will be notified to the contractor.

2.24.2.4 Inspection Notes

On the stores being found acceptable by the Inspecting Officer, he shall furnish the contractor with

necessary copies of the Inspection Notes duly completed, for being attached to the contractor's bill in

support thereof.

2.24.2.5 Certification of Inspection and Approval

a) No stores will be considered ready for delivery until the Purchaser or the Inspecting Officer nominated

by him shall have certified in writing that they have been inspected and approved by him.

b) It shall be the responsibility of the contractor to ensure that only such goods as have been duly

inspected and approved by the Inspecting Authority, are offered for arranging shipment to the

Government of India Forwarding Agents and to furnish to them a certificate as under :

"Certified that the goods offered for arranging shipment have been duly inspected and approved by the

prescribed authority in accordance with the terms of the contract and a copy of the Inspection

Certificate issued in this regard is enclosed".

2.24.2.6 Whenever inspection is by RA/Berlin, the all European manufacturer (S) shall prepare a quality plan in

conformity with ISO-9001-2008 and submit it to the Railway Adviser, sufficiently in advance of inspection.

The inspection shall proceed only after acceptance of the PO by Railway Adviser.

2.25 Inspecting officer- Powers of Rejection

2.25.1 The Inspecting Officer shall have the power-

(a) Before any stores or Part thereof are submitted for inspection, to certify that they cannot be in

accordance with the contract owing to the adoption of any unsatisfactory method of manufacturing.

(b) To reject any stores submitted as not being in accordance with the particulars.

(c) To reject the whole of the instalment tendered for inspection, if after inspection of such portion thereof,

as he may in his discretion think fit, he is satisfied that the same is unsatisfactory.

(d) To mark the rejected stores with a rejection mark so that they may be easily identified if re-submitted.

2.25.2 The Inspecting Officer's decision as regards the rejection shall be final and binding on the contractor.

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2.26 CONSIGNEE'S RIGHT OF REJECTION

2.26.1 Notwithstanding any approval which the inspector may have given in respect of the stores or any materials or other particulars or the work or workmanship involved in the performance of the contract (whether with or without any test carried out by the contractor or the inspector or under the direction of the Inspector) and notwithstanding delivery of the stores, where so provided to the interim consignee. it shall be lawful for the consignee, on behalf of the purchaser, to reject the stores or any part, portion of consignment there or within 90 days after actual delivery thereof to him at the place or destination specified in the schedule, if such stores or part/portion of consignment thereof is not in all respect in conformity with the terms and conditions of the contract whether on account of any loss, deterioration or damage before despatch or delivery or during transit or otherwise what so ever.

2.26.2 Provided that where, under the terms of the contract, the stores are required to be delivered to an interim consignee for the purpose of despatch to the consignee, the stores shall be at the purchaser's risk after their delivery to the interim consignee but nevertheless it shall be lawful for the consignee on behalf of the purchaser to reject the stores or any part/portion of consignment thereof upon their actual delivery to him at the destination, if they are not in all respect in conformity with the terms and conditions of contract, except where they are not in all or have been deteriorated in the course of transit otherwise after their delivery to the interim consignee.

2.26.3 The provisions contained in the clause-2.27 of this section relating to the removal of stores rejected by the inspector shall, mutatis mutandis, apply to stores rejected by the consignee as herein provided.

2.27 CONSEQUENCE OF REJECTION

2.27.1 If on the stores being rejected by the Inspecting Officer of consignee at the destination, the contractor fails to make satisfactory supplies within the stipulated period of delivery, the purchaser shall be at liberty to- (a) Request the contractor to replace the rejected stores forthwith but in any event not later than a

period of 21 days from the date of rejection, and the contractor shall bear all the cost of such replacement, including freight, if any, on such replacing and replaced stores but without being entitled to any extra payment on that or on any other account.

(b) Purchase or authorize the purchase of stores rejected or stores of a similar description (when

stores exactly complying with the particulars are not, in the opinion of the purchaser which shall be final, readily available) without notice to the contractor, at his risk and cost and without affecting the contractor's liability as regards to the supply of any further installment due under the contract, or

(c) Cancel the contract and purchase or authorize the purchase of the stores or stores of a similar

description (when stores exactly complying with the particulars are not in the opinion of the purchaser which shall be final readily available) at the risk and cost of the contractor. In the event of action being taken under sub-clause (ii) above or this sub-clause, the provisions of clause-2.18 & 2.19 of the General Conditions of Contract, shall apply as far as applicable.

2.27.2 Where, under a contract, the price payable is fixed on F.O.B. port of export or F.O.R. (station of dispatch)

the contractor shall, if the stores are rejected at the destination by the consignee, be liable in addition to his other liabilities including refund of price recoverable in respect of the stores so rejected, to reimburse to the purchaser, the freight and all other expenses incurred by the purchaser in this respect.

2.27.3 Rejected Stores

2.27.3.1 On rejection of any stores submitted for inspection at a place other than the premises of the contractor, such stores shall be removed by the contractor at his own cost, subject as hereinafter stipulated, within 21 days

of the date in intimation of such, rejection. If the concerned communication is addressed and posted to the contractor at the address mentioned in the schedule, it will be deemed to have been served on him at the time when such communication would in course of ordinary post reach the contractor. Provided further that the inspector may call upon the contractor to remove dangerous, infected or perishable stores within 48 hours of the receipt of such communication and the decision of the inspector in this behalf shall be final in all respects. Provided further that where the price or part thereof has been paid, the consignee is entitled without prejudice to his other rights to retain the rejected stores till the price paid for such stores is refunded by the contractor and that such retention shall not in any circumstances be deemed to be the acceptance of the stores or waiver of rejection thereof. Rejected article should be removed within 21 days from the date of issue of rejection advice failing which purchaser‟s responsibility will be seized. If the material is still not removed before the period of 21 days ground rent will be charged @ ½% per day of the value of the rejected material or Rs.10.00 whichever is higher.

2.27.3.2 All rejected stores shall in any event and circumstances remain and always be at the risk of the contractor, immediately on such rejection. If such stores are not removed by the contractor within the period aforementioned, the inspector may remove the rejected stores and either return the same to the contractor at his risk and cost by such mode of transport as the purchaser of the Inspector may decide, or dispose off such stores at the contractor's risk and on his account and retain such portion of the proceeds, if any, from such disposal, as may be necessary to recover any expense incurred in connection with such disposal (or

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any price refundable as a consequence of such rejection) The Purchaser shall in addition, be entitled to recover from the contractor, the handling and storage charges for the period during which the rejected store are not removed/disposed off in accordance with the provision thereof.

2.27.4 Methodology to deal with the cases of Rejection: Cases of Rejection of Stores supplied by firm against

Purchase Order placed by DLW shall be dealt with as under:

2.27.4.1 Pre-inspected material rejected by consignee on receipt-

a) Joint inspection of rejected material may be held with DLW, pre-inspecting agency and the firm. In case

of failure of either of the two parties to associate with joint inspection, the joint inspection should be held

by the consignee with whichever of the two parties comes for joint inspection. Irrespective of whether

the party(ies) attend joint inspection or not, the modality of joint inspection etc will have to be completed

within 21 days of communication of rejection advice to the supplier (in line with IRS Conditions of

Contract clause 703). For imported material, the time limit will be 45 days.

b) In case of replacement supply against the rejected goods, the same should be pre-inspected by same inspecting agency which passed the material earlier or as decided by purchaser.

2.27.4.2 Material rejected after receipt but within warranty a) Materials are rejected in warranty in the following situations:

Cat.I (a): Warranty failure of material in DLW shop which was issued from its associate stores depot: The warranty claim will be processed following procedure indicated in sub-Para

2.27.4.1 above except for the following changes: the 'rejection advice' mentioned in sub-Para 2.27.4.1 above will be replaced by the 'warranty rejection advice'. The time which can be taken for the completion of modality of joint inspection as per sub-Para 2.27.4.1.a above will be 45 days (instead of 21 days) from the date of communication of rejection advice to the supplier.

Cat. I (b): For Warranty failure in shop/shed of material received from DLW

(either under sale issue note or as a purchased component or rolling stock manufactured at the DLW) :

(i) In such cases it may not be convenient for the end user to return the material to the DLW

stores depot (against which the original supply was made by the vendor). Thus in all such cases, the warranty rejected material will be kept in safe custody by the end user and the DLW will be advised by the end user about the warranty rejection duly indicating the reason(s) or rejection with a confirmation that the rejected material is under end user's custody.

(ii) DLW will raise warranty claim on the firm. The warranty claim will be processed following

procedure indicated in sub-Para 2.27.4.1 above except for the following changes: the 'rejection advice' mentioned in sub-Para 2.27.4.1 above will be replaced by the 'warranty rejection advice'. The time which can be taken for the completion of modality of joint inspection as per sub-Para 2.27.4.1.a above will be 45 days (instead of 21 days) from the date of communication of rejection advice to the supplier.

(iii) For Imported material the time limit in Cat.I(a) & Cat.I(b) will be 90 days.

b) Financial recovery (if any made) against the warranty failure will be refunded to the firm on warranty

quantity replacement.

c) Inspection of the replacement supply against warranty rejection:

i) For cases of replacement supply against warranty failure falling in the category I(a) above, the

replacement supply should normally be inspected by the same inspection agency which inspected and passed original supply. Thus for I(a), any change in inspection authority for the warranty replacement will necessitate a formal amendment in contract.

ii) In case of warranty rejection of item of the category I.(b) above, it may in some cases be difficult to re-use the services of inspection agency which passed the original supply. Similarly for some items, the end user/consignee may not have the requisite inspection facility/ expertise.

Thus for warranty rejection falling in the category I.(b) above, The decision on the above will rest with

the DLW who raised the warranty claim and will be indicated in the warranty claim notice.

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iii)However in case the warranty failure is of a component of an assembly supplied, the component can

be accepted on firm's own Guarantee Certificate/Internal inspection certificate and consignee's final inspection for both the categories {Cat I(a) and Cat I (b)} of warranty failure.

d) Place of warranty replacement – For warranty replacement of category I.(a), in order to ensure correct

accountal of warranty replacement, the place of warranty replacement will be the DLW depot which received the original supply. For warranty replacement of failure falling in category I.(b) above, an exemption can be made and the place of replacement supply shall be indicated by the DLW in the warranty claim notice to the firm to be the end-user's place.

e) For warranty replacement of the category I.(b),After settlement of warranty claim the rejected material

will be handed over by the end user to the firm's representative. The end user will also inform the DLW who raised warranty claim about the replacement.

2.27.4.3 At the option of the depot officer/end-user, rectification of the material rejected may be permitted within

railway premises by the firm only after the firm has refunded the payment (if already made by Railway) or equivalent amount has been withheld for this purpose. However, from the date of communication of rejection advice, the rectification activity has to be completed within 21/45 days for indigenous/imported material respectively for rejection of the category covered against Para 2.27.4.1 and 45/90 days for indigenous/imported material respectively for the rejection of the category covered against Para 2.27.4.2 If more time is taken beyond this, applicable ground rent will be levied on the firm.

2.27.5 Rectification of Rejected Materials By DLW In Urgency:

2.27.5.1 With a view to avoid hold up in production due to non availability of certain material, it may, sometimes, be

necessary in emergent cases to accept the material, which is not strictly according to drawing / specification mentioned in the purchase order, with minor repair / rectification mentioned in the purchase order, with minor repair / rectification done in DLW. In such situation, DLW reserves the right to accept such materials by carrying out minor repairs etc, as needed, if the estimated repair cost per unit is up to 10% of the unit value as given in purchase order, without taking supplier‟s consent. The actual cost of repair shall be recovered from the supplier.

2.28 Payment Terms:

2.28.1 Normal payment term of Railway is 100% payment after receipt and acceptance of material by consignee. Payment for the full stores or each consignment thereof will be made to the contractor on submission of bill accompanied by the prescribed documents mentioned in the contract.

2.28.2 Payment terms for indigenous vendors

2.28.2.1 Payment of 95% for the stores or each consignment thereof will be made against Inspection Certificate and proof of dispatch. For dispatch of material by road, it is the challan of the supplier duly certified by the consignee Gazetted Officer towards receipt of material at consignee‟s end will constitute the proof of dispatch for the purpose of payment. For rail dispatch, clear and unqualified RR / PWB may be considered as the proof of dispatch.

2.28.2.2 Balance 5%, payment will be made on receipt and acceptance of stores by the consignee, signified by granting of Receipt Note. In other words, balance 5% payment shall be made against Receipt Note.

2.28.2.3 However, for orders valuing up to Rs. 5 Lakhs, 100% payment against receipt and acceptance of the material by the consignee i.e., against Receipt Note shall be preferred.

2.28.2.4 Payment through ECS / EFT a) The tenderer should give consent in a mandate form for receipt of payment through ECS / EFT

(Annexure 16). b) Tenderer should provide the details of Bank Account in line with RBI guidelines for the same. These

details will include Bank‟s Name, Branch Name & Address, supplier‟s Account Type, supplier‟s Bank Account Number, and Bank & Branch Code (IFSC) as appearing on MICR cheque issued by bank.

c) Tenderer should attach certificate from their bank certifying the correctness of all above-mentioned

information. d) In case of non-payment through ECS/ EFT or where ECS / EFT facility is not available; payment may

be released through cheque, depending upon merit. However, payment through ECS is preferable.

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e) The bidder shall furnish following details in their offer to be incorporated in the purchase order; (i) Supplier‟s Account no. (Type) (ii) Bank Name & Code. (iii) Branch name & Address. IFSC (iv) Whether payment is through ECS / EFT or Cheque.

2.28.3 Payment terms for foreign vendors

Foreign Supplies: The Standard payment terms subject to recoveries, if any under the Liquidated Damages Clause in General Conditions of Contract will be as under:

(a) (i)100% payment on proof of inspection certificate/WTC and shipping documents etc.

(ii) The foreign firm will be required to submit PBG of 10% of PO value for claiming 100% payment against LC as per annexure 12. In case of CFR contract this payment will be subject to furnishing of an additional Bank Guarantee in a form to be approved by the purchaser for the amount to safeguard the purchaser against any loss. This additional guarantee for CFR contract will be operative from the date of shipment to the date of delivery at port in India as per annexure-12.

(b) The purchaser may at its option call for additional security in the form of Warranty Bank Guarantee to ensure the satisfactory fulfilment of the warranty obligation of the firm. The WBG will be in the format as indicated in annexure-13.

(c) Further, the purchaser may at its option permit the submission of a combined Performance and Warranty Bank Guarantee. The combined performance and warranty BG will however be in the format attached at annexure-13.

(d ) (i) In import case PBG/WBG may be waived off based on merit of case

(ii) In case of waival of PBG/WBG in import cases the procedure of LC opening and payment will be as follows :-

(a) LC to be opened for 100% value (FOB).

(b) 90% payment to be made on presentation of documents as per clause 1.30.6 (unless otherwise indicated) and balance 10% payment will be made after receipt of material by ultimate consignee i.e. Dy. CMM / Depot / DLW & inspection and issuing R/Note by Dy. CMM / Depot / DLW thereof.

(e) If discrepant documents are received and discrepant/discrepancies is/are reported to DLW, the Exchange Rate Variation on higher side, if any, will be on firm‟s account.

2.28.4 Deductions: Payment as in above clauses above shall be subject to deductions of any amount for which the

Contractor is liable under the contract against this tender or any other contract in respect of which the

President of India is the purchaser.

2.29 Payment Procedure

2.29.1 The contract price will be normally paid in the currency or currencies in which the price is stated in the

successful tender.

2.29.2 Payment for contracts against indigenous tenders will be made in Indian Rupees against bills preferred by

the contractor. Any payment in the foreign currency that the contractor may have to pay for imported

components forming part of the tender will be arranged by him directly.

2.29.3 All banking charges in India and the Country of the vendor will be borne by the purchaser in case of

irrevocable and unconfirmed L.C. irrespective of PO value. However, the following will be exception to this

rule :-

(a) If the Vendor chooses his own L.C. advising/negotiating Bank and confirming Bank, then all foreign banking charges (including confirmation charges) will be borne by the Vendor irrespective of PO value.

(b) All expenses on account of amendments to L.C. on behest/request of the Vendor will be borne by the Vendor.

(c) The vendor will not choose the Applicant bank (i.e. L.C. opening bank) in India. This will be decided by D.L.W. in accordance with D.L.W's banking and administrative procedures. If vendor does so they will have to bear Indian Bank Charges also.

2.30 Option Clause

2.30.1 Unless otherwise indicated Railway reserves the right to cancel the tender for full or part tendered quantity

without assigning any reason. However, purchaser will have discretion to accept an offer for quantities which

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are up to 30% higher than the tendered quantity. The rates quoted by the tenderers for the full quantity

would be taken as valid.

2.30.2 Purchaser also reserves the right to increase or decrease the ordered quantity, after giving reasonable

notice, by a maximum of 30% (i.e. ±30%) after the placement of order during the currency of the contract.

The increase in quantity, however, is subject to keeping the overall quantity increase on all the successful

tenderers within 30% of the tendered quantity.

2.30.3 Operation of the option clause can be made any time within delivery period of the contract giving reasonable

time to the firm to supply the enhanced quantity. It may be noted that for invocation of the option clause,

validity of the contract will be considered upto the delivery period mentioned in the contract even though the

supplies have been completed in advance

2.30.4 For operation of the (-) 30% option clause, consequent to decrease in the prices in subsequent contracts,

reasonable notice will be served by giving reasonable opportunity to the contractor to unconditionally agree

to accept such lower rates for the quantity unsupplied on the date of reduction/decrease of the prices or the

(-)30 % quantity, whichever is less. Notwithstanding anything stated above, purchaser reserves the right to

operate the option clause up to (-) 30% of the ordered quantity or the unsupplied quantity, whichever is

lower after giving reasonable notice.

2.30.5 Reasonable notice as mentioned in above Para is only for purpose of allowing the contractor to make

necessary arrangements and same is not for seeking any consent from the contractor towards exercise of

contractual option clause.

2.30.6 In case of Delivery Period is extended in the contract with (+) 30% option clause either for full ordered

quantity or a part quantity which remained unsupplied on the date of expiry of the original Delivery Period,

then during the extended Delivery Period also, quantity variations can be made on the total ordered

quantities.

2.30.7 DLW further reserves right to incorporate special option clause in a purchase order to increase the ordered

quantity up to tendered quantity +30%.

2.30.8 Purchaser reserves the right to operate option clause fully or partially in one or more than one occasions as

per requirement.

2.31 Pilot Sample

2.31.1 Whenever, in terms of the contract, firm is required to submit pilot sample, they will be required to submit

minimum three samples for approval, if not specified otherwise. Out of that, one sample, if found suitable

after testing, will be returned to the firm for reference purpose and for the guidance of the Inspection

Agency, if required. One sample duly approved shall be retained by the Depot officer. The 3rd sample, if

gets destroyed during the testing, shall be accounted for by the Depot officer, provided same gets passed

and found suitable during testing.

2.31.2 In the event of a pilot sample failing the inspection/tests, all the samples whether intact or broken during a

destructive test as the case may be, shall be returned to the supplier along with the inspection report, if any,

provided by the inspecting/testing agency.

2.31.3 Submission and collection of the sample shall be sole responsibility of the supplier.

2.32 Warranty/Guarantee:

2.32.1 Unless otherwise stated in the tender schedule and/or tendered specification, the warranty/guarantee as

specified in the IRS conditions of the contract i.e. 30 months from the date of delivery at ultimate destination

in India or 24 months from the date of commissioning, whichever is earlier, shall apply. In case, there is

difference in the period specified in the tendered specification vis-a-vis IRS Conditions, former will prevail.

Tenderers should further note that if the Guarantee/Warranty is a part of the tendered specification and/or

tender schedule, then any deviation on this count, shall be treated as a technical deviation, which may

render their offer technically unsuitable. Bidders are advised to bring such deviation(s) clearly in the

technical deviation statement. In case, this deviation is not indicated in the technical deviation statement, it

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will be presumed that offer is as per the tendered specification in all respect. Any ambiguity in this regard or

any other respect shall be to the disadvantage of the bidder.

Further, Suppliers shall ensure that the materials are invariably stamped with marking as may be detailed in

drawing/specification of material to enable correct reckoning of warranty.

2.32.2 Unless otherwise is mentioned in tender Drg./specific etc. the warranty shall survive inspection of, payment

for and acceptance of the goods but shall expire 30 (Thirty) months after the delivery at ultimate destination

in India or 24 (Twenty Four) months from the date of commissioning and proving test of equipment at

ultimate destination in India, whichever shall be earlier, except in respect of complaints, defects and/or

claims notified to the contractor within 3 (Three) months of expiry of such date.

2.32.3 Bank Guarantee towards Warranty obligation: For items like machinery and Plant, Costly equipment,

capital spares, the tenderer, wherever called upon to do so, shall furnish a Bank Guarantee of 10% of

Material value to cover their warranty obligation. The model proforma of the Warranty/Guarantee bond is

annexed as Annexure 13.

a) It would be the responsibility of the contractor to ensure that Bank Guarantee (BG) required to be

submitted by them, should be sent directly by the issuing Bank under registered Post to the concerned

Purchasing Authority and, in no case should be brought by the tenderer. That is to say, the firm shall

not involve themselves in transmission of the BG between the issuing bank and the purchaser.

b) In exceptional cases, where the BGs are submitted through the contractors, suppliers etc., the

suppliers/contractors should advise issuing branch to immediately send by registered post AD/speed

post/courier service an unstamped duplicate copy of the Bank Guarantee directly to the DLW with a

covering letter to compare with the original BGs and to confirm that they are in order.

2.32.4 Performance Guarantee bond

2.32.4.1 After a letter of acceptance is issued by the purchaser, the contractor shall furnish a performance guarantee

bond in the proforma attached (Annexure-12) from a Nationalized Bank or Schedule commercial foreign

bank branches operating in India Governed by Reserve Bank of India guidelines or foreign bank duly

countersigned by a Nationalized Indian Bank within 15 days from the receipt of the letter of acceptance of

the tender by the contractor or the execution of the contract, whichever is earlier, for an amount equivalent

to 10% of the value of the contract in the same currency of the contract price. The expenses to be incurred

for the counter signature of a nationalized bank shall be borne by the contractor. On the performance and

completion of the contract in all the aspects the Performance Guarantee Bond will be returned to the

contractor without any interest. In case furnishing of an acceptable performance Guarantee Bond is delayed

by the contractor beyond the period provided above and bond is accepted by the Purchaser, Liquidated

damages, as provided in clause-2.16 for a period of delay in submission of the bond, may be levied.

Alternatively, the purchaser may declare the contract as at an end and enforce clause 2.18 & 2.19.

2.32.4.2 The Performance Guarantee Bond shall remain in full force and effect during the period that would be taken

for satisfactory performance and fulfillment in all respects in the contract i.e. till satisfactory supply of

material at consignee's place or till satisfactory commissioning of machine (as the case may be ). Unless

otherwise specified, the PBG will be valid for 12 months after the date of last shipment/delivery of the goods.

Further, before the expiry of the date of validity of the Performance Guarantee Bond, the Contractor on

being called upon by the Purchaser from time to time shall obtain from the Guarantor Bank, extension of

time for validity thereof for a period of six months, on each occasion, The extension or extensions aforesaid

executed on non-judicial stamp paper of appropriate value must reach the Purchaser at least thirty days

before the date of expiry of the Performance Guarantee Bond on each occasion.

2.32.4.3 As and when an amendment is issued to the contract the contractor shall within fifteen days of the receipt of

such an amendment furnish to the purchaser an amendment to the performance Guarantee Bond rendering

the same valid for the contract as amended.

2.32.4.4 The Performance Guarantee Bond and/or any amendment thereto shall be executed on a stamped paper

of requisite money value in accordance with the laws of the country in which the same is/are executed by

the party competent to do so.

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Section 2 Annexures



2.33 Conditions for Installation and Commissioning of items other than M&P:

In cases, where the installation and commissioning of stores supplied is to be done by the supplier, the following conditions will also apply:

(i) The installation and commissioning charges should be shown separately. Firm must quote these charges separately in their offer in appropriate column.

(ii) The payment for installation and commissioning will be done after the successful installation and commissioning by the firm.

(iii) Firm should emboss/put permanent sticker/engraving showing date of manufacturing for each of the component requiring installation and commissioning.

(iv) Call for installation and commissioning will be given by shop officers against specific PO with a copy to Depot Officers.

(v) Firm shall depute the staff for installation and commissioning within 15 days of call, failing which LD @ 2% per month of value of goods subject to maximum of 10% will be recovered.

(vi) Bills for installation and commissioning will be submitted to the Depot Officers along with installation and commissioning certificate issued by shop officers.

(vii) Depot Officers will have to submit the bills to Accounts Department. for payment and will maintain record of payment of installation and commissioning charges against various POs in each case.

2.34 Conditions for Fabrication Contracts:

a. The raw material shall be issued to the contractor against bank guarantee. The contractor shall submit a bank guarantee equivalent to the cost of raw material (to be advised by the consignee) within 14 days of the placement of order failing which a penalty of Rs.1000/- per day shall be imposed.

b. The contractor shall lift the raw material within three days of the demand placed by Depot Officer or his authorised representative.

c. Any intimation by telephone, telex or fax by Depot Officer or his authorised representative for lifting of material shall also be deemed to valid demand.

d. Any delay in lifting the raw material by contractor beyond 03 days of demand, shall attract a penalty @ ¼% per day of fabrication value of material for which raw material has been offered to contractor per day.

e. Any delay in returning the fabricated material beyond the delivery period shall attract a penalty of @ ¼ % per day of fabrication value of the material for which raw material has been given to the contractor.

2.35 Corrupt gifts and payment of commission

2.35.1 Any bribe commission, gift or advantage, given, promised or offered by or on behalf of the contractor, his

agents or servants or any one on his/their behalf to any employee representative or agent of the purchaser

or any person on his behalf in relation to the execution of this or any other contract with the purchaser shall

in addition to the criminal liability under the laws in force, subject the contractor to cancellation of this and all

other contracts with the purchaser, and also to payment of any loss resulting from any such cancellation to

the like extent as is provided in case of cancellation under clause "DEFAULT" given below and the

purchaser shall be entitled to deduct the amounts so payable from any money otherwise due to the

contractor under this or any other contract. Any question or dispute as to the commission of any offence

under the present clause shall be settled by the purchaser in such manner and no such evidence or

information as may be thought fit and sufficient and his decision shall be final and conclusive on the matter.

2.36 Arbitration Clause

2.36.1.1 For Indigenous Suppliers: In the event of any question, dispute or difference arising under these General

Conditions of Contract or any Special Conditions of Contract, or Instructions to Tenderer's or in connection

with this contract (except as to any matter the decision of which is specifically provided for by these

conditions or Instruction to Tenderers‟ or the Special Conditions) the same shall be referred to a sole

arbitrator which will be a Gazetted Railway Officer appointed as the Arbitrator by General Manager, Diesel

Locomotive Works, Varanasi (U.P.) INDIA. The Gazetted Railway Officer to be appointed as Arbitrator,

however, will not be one of those who had an opportunity to deal with the matter to which the contract

relates or who in the course of their duties as railway servants had expressed views on all or any of the

matters under dispute or difference. The award of the Arbitrator shall be final and binding on the parties to

this contract.

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Section 2 Annexures



2.36.1.2 For Foreign Suppliers: In the event of any dispute or difference arising between the parties hereto relating

to any matter arising out or connected with this agreement, such dispute or difference shall be referred to

the Award or tribunal of two Arbitrators, one Arbitrator to be nominated by the purchaser and the other to be

nominated by the contractor or in the case of the said Arbitrators not agreeing then to the award of an

Umpire to be appointed by the Arbitrators in writing before proceeding with the reference, and in case the

Arbitrators cannot agree, to the Umpire, the Umpire may be nominated by the Chief Justice of India. The

award of the Arbitrators shall be final and binding on the parties. Subject as aforesaid to the Indian

Arbitration & Conciliation Act. 1996 the rules thereunder and any statutory modification or re-enactments

thereof shall apply to the arbitration proceedings under this agreement. The venue of the arbitration in all

cases shall be in India.

2.36.2 In the event of the arbitrator (s) dying neglecting or refusing to act, or resigning or being unable to act for any

reason or his award being set aside by the court for any reason, it shall be lawful for the authority appointing

the arbitrator(s) to appoint another arbitrator(s) in place of the outgoing arbitrator(s) in the manner aforesaid.

2.36.3 It is further a term of this contract that no person other than the person appointed by the authority as

aforesaid should act as arbitrator and that if for any reason that is not possible the matter is not to be

referred to arbitration at all.

2.36.4 The Arbitrator may from time to time, with the consent of all the parties to the contract enlarge the time for

making the award.

2.36.5 Upon every and any such reference the assessment of the cost incidental to the reference and award

respectively shall be at the discretion of the arbitrator(s).

2.36.6 Subject as aforesaid, the Arbitration & Conciliation Act-1996 and the rules thereunder and any statutory

modification thereof, for the time being in force, shall be deemed to apply to the arbitration proceeding under

this clause.

2.36.7 Work under the contract, if reasonably possible, may continue during the arbitration proceedings and no

payment due to or payable by the purchaser shall be held on account of such proceedings.

2.36.8 The venue of arbitration shall be the place from which the purchase order is issued or such other place in

India the arbitrator(s) at his/her / their discretion may determine.

2.36.9 In this clause the authority to appoint the arbitrator includes, if there be no such authority the officer for the

time being discharging the functions of that authority, whether in addition to other functions or otherwise.

2.36.10 Pre- Arbitration Meetings: To avoid the cumbersome & time consuming process of arbitration, pre-

arbitration meeting with the contractors can be held for settlement of claim of contractors. However such

meeting/discussions shall be without prejudice to the Railway‟s interest in the matter. If an understanding is

reached between the administration and the contractor, discussions will be recorded indicating the claim

admitted to the extent and the claim not admitted and the contractor‟s no claim certificate taken on that

basis. In either case subsequent action shall be proceeded and the residual disputes if any, shall be referred

to arbitration in terms of clause/Para 2.36 above.

2.37 Laws governing the contract:

2.37.1 This contract shall be governed by the laws of India for the time being in force.

2.37.2 Irrespective of the place of delivery the place of performance or place of payment under the contract, the

contract shall be deemed to have been made at the place in India from where the contract has been issued.

2.37.3 Jurisdiction of courts: The Courts of the place from where the acceptance of tender has been issued shall

alone have jurisdiction to decide any dispute arising out of or in respect of the contract.

2.37.4 Compliance of provisions contained in Contract Labour (Regulation and Abolition) Act, 1970 shall be

ensured by the Supplier wherever applicable in fulfilling the contractual obligations as per the scope of

supply within the supply contract.

2.38 Secrecy

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Section 2 Annexures



2.38.1 The contractor shall take all reasonable steps necessary to ensure that all persons employed in any work in

connection with the contract, have full knowledge of the Official Secrets Act and any regulations framed

thereunder.

2.38.2 Any information obtained in the course of the execution of the contract by the contractor his servants or

agent or any person so employed as to any matter whatsoever which would or might be directly or indirectly

of use to any enemy of India, must be treated as secret and shall not at any time be communicated to any

person.

2.38.3 Any breach of the aforesaid conditions shall entitle the purchaser to cancel the contract and to purchase or

authorize the purchase of the stores at the risk and cost of the contractor in accordance with the clause 2.18

& 2.19 of the General Conditions of Contract. In the event of such cancellation, the stores or parts

manufactured in the execution of the contract shall be taken by the purchaser at such price as he considers

fair and reasonable and the decision of the purchaser to such price shall be final and binding on the

contractor.

2.39 Insurance

2.39.1 In the case of either FOB or CFR or FAS offer insurance shall be arranged by the Purchaser.

2.39.2 In the case of indigenous offers, the purchaser will not pay separately for transit insurance and the supplier

will be responsible till the entire stores contracted for, arrive in good condition at destination. The consignee,

will advise the tenderer within 45 (forty five) days of the arrival of goods at the destination, any loss/damage

etc. of the goods and it shall be the responsibility of the tenderer to lodge the necessary claim on the carrier

and/or insurer and pursue the same. The tenderer shall, however, at his own cost replace/rectify

immediately, to the entire satisfaction of the consignee, the goods lost/damaged, without waiting for the

settlement of the claim.

2.40 Export license

2.40.1 If required, the contractor shall apply to the appropriate Government Authority of the exporting country for

the grant of the requisite Export Licence within seven days of the receipt of contract.

2.41 Force Majeure

2.41.1 In event of any unforeseen event directly interfering with the supply of stores arising during the currency of

the contract, such as insurrection, restraint imposed by the Govt., act of legislative or other authority; war,

hostilities, acts of the public enemy, civil commotion. sabotage, fires, floods, explosions, epidemics,

quarantine restrictions, strikes, lockouts or acts of God the contractor shall within two weeks from the

commencement thereof, notify the same in writing to the purchaser with reasonable evidence there of. If the

force majeure condition (s) mentioned above will be in force for a period of 180 days or more at any times

the purchaser shall have the option to terminate the contract on expiry of 90 days of commencement of such

force majeure by giving 14 days notice to the contractor in writing. In case of such termination no damages

shall be claimed by either party against the other save and except those which had occured under any other

clause of this contract prior to such termination.

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Section 3 Annexures


Bid Document for Global Tender Special Conditions of Contract

Section 3

Special Conditions of Contract

3 The following special conditions shall apply to contracts for the supply of plant and machinery and manufactured

equipment. But where they differ from the General Conditions, the Special Conditions shall over-ride the General

Conditions.

3.1 Definitions:

(a) The term “Work” means all the work specified or set forth and required if any by the said specifications,

drawings and “Schedule of Requirements”, hereto annexed or to be implied therefrom or incidental thereto,

or to be hereafter specified or required in such explanatory instructions and drawings (being in conformity

with the said original specification (s), drawing (s) and “Schedule of Requirements” and also in such

additional instructions and drawing supplied by the purchaser from time to time, during the progress of the

work hereby contracted for.

(b) The term “Test” shall mean such test or tests as are prescribed by the specification (s) to be made by

the purchaser, or his nominee, after erection at site, before the plant is taken over by the purchaser.

3.2 Performance of Work

3.2.1 The work shall be performed at the place or places specified in the tender or at such other place or places

as may be approved by the purchaser.

3.3 Specifications

3.3.1 If the contractor shall have any doubt as to the meaning of any portion of the conditions of the specifications,

drawings or plans, he shall (before submitting the tender) set forth the particulars thereof and submit them to

the purchaser in writing in order that such doubts may be removed.

3.4 Mistakes in Drawings

3.4.1 The Contractor shall be responsible for and shall pay for any alterations of the works due to any

discrepancies, errors of omissions in the drawings or other particulars, whether they have been approved by

the purchaser or not, provided that such discrepancies, errors or omissions are not due to inaccurate

information or particulars furnished to the contractor on behalf of the purchaser. If any dimensions figured

upon a drawing or plan differ from those obtained by scaling the drawing or plan the dimensions as figured

upon the drawing or plan shall be taken as correct.

3.5 Variations

3.5.1 No alterations, amendments, omissions, additions, suspension, or variations of the work (hereinafter

referred to as “variations”) under the contract as shown by drawings or the specifications shall be made by

the Contractor except as directed in writing by the Inspector, but the Inspector shall have full power, subject

to the provison hereinafter contained from time to time, during the execution of the contract by notice in

writing to instruct the Contractor to make such variation without prejudice to the contract, and the Contractor

shall carry out such variations and be bound by the same conditions so far as applicable as though the said

variation occurred in the specifications. If any suggested variation, would, in the opinion of the Contractor, if

carried out, prevent him from fulfilling any of his obligations or guarantees under the contract, he shall notify

the Inspector thereof in writing and the Inspector shall decide forthwith, whether or not they shall be carried

out. If the Inspector confirms his instruction, the Contractor‟s obligations and guarantees shall be modified to

such an extent as may in the opinion of the Inspector, be justified. The difference of cost, if any, occasioned

by any such variations shall be added to or deducted from the contract price as the case may require.

The amount of such difference, if any, shall be ascertained as determined in accordance with the rates

specified in the schedule of prices, so far as the same may be applicable and where the rates are not

contained in the said schedule or not applicable, they shall be settled by the Purchaser and Contractor

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Section 3 Annexures



jointly. But the Purchaser shall not become liable for the payment of any such variations, unless the

instructions for the performance of the same have been given in writing by the Inspector.

3.5.2 In the event of the Inspector requiring any variations, such reasonable and proper notice shall be given to

the Contractor, as will enable him to make his arrangements accordingly, and in cases where goods or

materials are already prepared or any designs, drawings, or patterns made or work done is required to be

altered a reasonable sum in respect there of shall be allowed by the Purchaser, provided that no such

variations shall, except with the consent in writing of the Contractor, be such as will involve an increase or

decrease in the total price payable under the contract by more than 10 percent thereof.

3.5.3 In any case, in which the Contractor has received instructions from the Inspector for carrying out the work

which either then or later, will, in the opinion of Contractor involve a claim for additional payment, the

Contractor shall as soon as reasonably possible after receipt of the instructions aforesaid, advise the

Inspector to that effect.

3.6 Authorization letter:

3.6.1 DLW will prefer that OEM participate directly in the tendering process. In all other cases the tenderer must

be authorized dealer/ distributor of OEM or authorized by OEM for this specific tender. Relevant valid

documents in this regard should be uploaded along with the offer. After opening of tender no documents in

this regard shall be accepted.

3.7 Validity of offer:

3.7.1 The offer should be kept valid for 150 days from the date of opening of the tender.

3.8 Evaluation Criteria:

3.8.1 In addition to relevant parts of para 2.11, the tender must ensure to quote for all the concomitant

accessories, essential accessories/spares/services and AMC charges (wherever applicable) at the

prenominated place on the e-offer form as these are considered for evaluation of the offer and arriving at

interse ranking. It is made clear that the rates quoted under the heading of optional

accessories/spares/services etc. will not be included for the purpose of arriving at inter-se ranking.

3.8.2 Tenderer must ensure to offer rates for all the tendered items including optional accessories/spares/services

etc. as non compliance of this will render their offer incomplete.

3.9 Qualifying criteria:

3.9.1 Tenderers are required to read the qualifying criteria carefully in the technical specification-I attached with

the tender document. All the documents in support of qualifying criteria must be uploaded along with the

offer and no documents in this regard will be accepted after the opening of the tender. Railways, however

reserves the right to verify such documents and the informations contained therein. In case of any

discrepancy or falsehood, extant provision under the law shall be applicable.

3.10 Technical Compliance and Deviations:

3.10.1 No deviations will be permitted in the leading parameters of the tendered item and offers with deviation in

the leading parameters will be ignored without any back reference. The technical deviations in other

parameters, if any, have to be mentioned at pre-nominated place in the e-offer form under “Statement of

technical deviations” only. If the deviations are uploaded in form of a document then it must have reference

at the above pre-nominated place on the e-offer form duly indicating the file name of uploaded document

failing which such document will not be evaluated for the purpose of technical deviations.

3.10.2 By participating in the tender, the tenderers are deemed to agree to comply with each and every clause of

technical specification-I unless deviations to any clause(s) is expressly brought out under the statement of

technical deviations in the e-offer form at pre-nominated place.

3.10.3 Any deviations with respect to tendered values of parameter and uploaded catalogue/ make & model should

be brought out clearly in the technical statement deviation and acceptability or otherwise of this will be sole

discretion of the Purchaser.

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Section 3 Annexures



3.11 After Sales Service:

3.11.1 The tenderers should confirm that they will render quick after sales service during the warranty period of the

machine and advise details of their after sales network/ office which will render the said service.

3.12 Annual Maintenance Contract (wherever applicable):

3.12.1 Tenderers are required to quote for post warranty Annual Maintenance Contract (AMC) for a period of five

years after expiry of the warranty period of the M&P along with their offers. The scope of AMC will include

preventive and breakdown maintenance. AMC charges will include all costs of personnel, spares etc. except

the cost of consumables required for day-to-day operation & daily maintenance checks.

3.12.2 The tenderers should quote AMC rates for each of the five years. The AMC prices for each year will be firm.

The AMC charges shall be separately payable in Indian Rupees only. The AMC charges would be added to

the FOR destination price quoted for M&P for the purpose of comparative evaluation of offer. In order to

equitably compare different AMC charges for different years, the concept of NPV (Net Present Value) may

be used at a predetermined rate of discounting to bring the AMC charges at the same footing in the

assessment of FOR destination price. The rate of discounting and the NPV calculation has been pre-

disclosed in the e offer form of the tender.

3.12.3 Railways reserve the right for entering into Annual Maintenance Contract (AMC) on the basis of rates quoted

by the tenderer in their tender against AMC charges.

3.12.4 The post-AMC maintenance of machines will be dealt with by the end users. In order to facilitate the same,

tenderers are required to give the current cost of spares required for maintenance of machine after AMC

period and the current Service charges for each items of work of repair of M&P beyond the AMC period.

These charges will not be included in the price of M&P for the purpose of comparative evaluation of offers.

3.12.5 Tenderers who are OEM, must give undertaking for supply of spare parts for a period of expected life of the

machine/equipment. Other tenderers must submit undertaking from OEM for supply of spare parts for a

period of expected life of the machine/equipment.

3.13 Obligations to carry out Inspector’s Instructions

3.13.1 The contractor shall also satisfy the Inspector that adequate provision has been made :-

(i) to carry out his instructions fully and promptly;

(ii) to ensure that parts required to be inspected before use are not used before inspections; and

(iii) to prevent rejected parts being used in error. Where, parts rejected by the inspector have been rectified

or altered, such parts shall be segregated for separate inspection and approval before being used in the

work.

3.14 RESPONSIBILITY FOR COMPLETENESS

3.14.1 Any fittings or accessories which may not be specifically mentioned in the specifications but which are usual

or necessary are to be provided by the Contractor without extra charge and the equipment must be

complete in all details.

3.14.2 In all cases where the contract provides for tests on site, the Purchaser, except where otherwise specified

shall provide free of charge such labour, materials, fuels, stores, apparatus and instruments as may be

requisite from time to time and as may reasonably be demanded, efficiently to carry out such test of the

plants, materials or workmanship etc. in accordance with the contract.

3.14.3 In the case of contracts requiring electricity for the completion of the works and for test on site, such

electricity, when available, shall be supplied free to the contractor at the pressure of the ordinary supply.

Unless otherwise specified, the purchaser will supply free of charge to the Contractor :-

(a) Unskilled labour;

(b) Timber stores and lifting tackle necessary for the erection of the plant and all consumable stores including

fuel and lubricating oils required during erection setting to work and testing of the plant.

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Section 3 Annexures



The Contractor shall also provide-

(i) Skilled labour and

(ii) Tools and any other equipment which may be necessary.

3.15 Shipment of stores beyond the stipulated delivery period for FOB contract

3.15.1 The contractor shall not despatch the stores till such time an extension in terms of the above is granted by

the purchaser. If the stores are despatched by the contractor before an extension letter as aforesaid is

issued by the purchaser the supply of the stores shall be deemed to be subject to the conditions set herein

the contract.

3.16 Timely Commissioning and Proving out of M&P:

3.16.1 The time allowed for commissioning of machine shall be deemed to be the essence of the contract. In case

of delay in commissioning of the machine on the Part of the contractor, the purchaser shall be entitled to

recover from the Contractor shall be liable to pay liquidated damages at the rate of 2% of the total contract

value for each month or part thereof for which commissioning is delayed, provided the amount of liquidated

damages under the provision of this clause shall not exceed 10% of the total contract value. Failure to

install/commission the machine within stipulated time after intimation from the consignee will be taken as

breach of contract and purchaser will be at liberty to forfeit the Security Money furnished by the supplier

without any prejudice to other rights under the contract.

3.16.2 Continuance of commissioning work after expiry of stipulated time will also constitute default for the purpose

of the above. The decision of the Purchaser, whether the delay in commissioning is attributable to the

Contractor, shall be final.

3.17 Warranty

3.17.1 The Contractor shall warrant that everything to be furnished hereunder shall be free from defects and faults

in design material workmanship and manufacture and shall be of the highest grade and consistent with the

established and generally accepted standards for goods of the type ordered and in full conformity with the

contract specifications and samples if any and shall if operable operate properly.

3.17.2 Unless otherwise is mentioned in tender Drg./Specific etc. the warranty shall survive inspection of, payment

for and acceptance of the goods but shall expire 30 (Thirty) months after the delivery at ultimate destination

in India or 24 (Twenty four) months from the date of commissioning and proving test of equipment at

ultimate destination in India, whichever shall be earlier, except in respect of complaints, defects and/or

claims notified to the Contractor within 3 (three) months of expiry of such date.

3.17.3 The Contractor‟s liability in respect of any complaints defects and/or claims shall be limited to the furnishing

and installation of replacement parts free of any charge or the repair of defective parts only to the extent that

such replacement or repairs are attributable to or arise from faulty workmanship or material or design in the

manufactures of the stores provided that the defects are brought to the notice of Contractor within 3 (three)

months of their being first discovered during the guarantee period or 3 (three) months from the date of expiry

of warranty period.

3.17.4 The Contractor shall if required replace or repair the goods or such portion there of as is rejected by the

Purchaser free of cost at the ultimate destination or at the option of the Purchaser, the Contractor shall pay

to the Purchaser value there of at the contract price or in the absence of such price, at price decided by the

Purchaser and such other expenditure and damages as may arise by reason of the warranty failure. If the

contactor fails to honor its warranty obligation as contained herein, the purchaser will have the right to

recover the damages from other payments accrued or accruable to the firm.

3.17.5 All replacement and repairs that the Purchaser shall call upon the Contractor to deliver or perform under this

warranty shall be delivered and performed by the Contractor within 2 (two) months from the date of being

informed, promptly and satisfactorily.

3.17.6 If the Contractor so desires, the replaced parts can be taken over by him or his representative in India for

disposal as he deems fit at the time of replacement of goods/parts. No claim whatsoever shall lie on the

purchaser for the replaced parts thereafter.

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3.17.7 The warranty herein contained shall not apply to any material which shall have been repaired or altered by

the Purchaser or on his behalf in any way without the consent of the Contractor so as to effect the strength

performance of reliability or to any defects to any part due to misuse, negligence or accident.

3.17.8 The decision of the Purchaser in regard to contractor‟s liability and the amount, if any, payable under this

warranty shall be final and conclusive.

3.18 Payment terms

3.18.1 For orders valued upto Rs. 5 lakh - 100% payment will be made after inspection and receipt/installation and

acceptance of equipment by the consignee.

3.18.2 Payment to foreign supplier: Payment against foreign supplies shall be made through Letter of Credit. All

charges, including the confirmation charges of L.C, levied by foreign banks, shall be borne by the supplier.

The standard payment terms subject to recoveries if any, under the liquidated damages clause and general

condition of contract will be as under:-

(i) 80% of the payment against irrevocable L.C on proof of inspection certificate and shipping documents

within 30 days of receipt of shipping documents as specified.

(ii) Balance 20% payment within 90 days after installation / commissioning and proving out test of M&P

subject to submission of bank guarantee for an amount of 10% of contract value, as warranty security.

3.18.3 Payment against indigenous supply: The standard payment terms subject to recoveries in any, under the

liquidated damages clause and general condition of contract will be as under:-

(i) 80% of the payment on proof of inspection certificate and Rail/Road Challan to be made within 30 days

of receipt of documents as specified.

(ii) Balance 20% payment within 90 days after satisfactory installation/ commissioning and proving test of

M&P subject to submission of bank guarantee for an amount of 10% of contract value, as warranty

security.

3.19 Training:

3.19.1 The contractor during commissioning of the equipment will also train Railway staff in operation and

maintenance of equipment supplied.

3.20 Maintenance Manual & Spares Parts:

3.20.1 Contractor is required to supply 2 copies of operation and maintenance manual and lists of Spare Parts

along with the equipment.

3.21 Port Consignee

3.21.1 Materials are required to be shipped to the following three port consignees in India.

(a) Chief Materials Manager (BI)

Eastern Railway

3rd Floor, 3, Koilaghat Street

Kolkata-700 001 (W.B.)

Fax No. 033-22487397

(b) Controller of Stores (Shipping)

Central Railway

Mumbai CST-400 001

Tele No. 1173819

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Section 3 Annexures



(c) Controller of Stores (Shipping)

Southern Railway

Chennai Beach

Chennai-600 023

Telex No. 41575

Details of quantities to be shipped to different port consignees will be advised at the time of placement of

order.

3.22 Ultimate Consignee

3.22.1 Materials may be required to be despatched to different railway consignees of Indian Railways. Quantities

to be despatched to different ultimate consignees have to be separately packed. Details of quantities for

each consignee will be advised at time of placement of contract.

3.23 Tax Paid Identification No.

3.24 Tenderers must quote their tax paid identification No. (TIN) in their quotation otherwise their quotation will

not be entertained in view of UP also adopting VAT w.e.f. 01/01/2008. TIN must also be quoted on the bills

by the suppliers, failing which their payment may not be released.

44

Section 4 Annexures


Bid Document for Global Tender Annexures

Section 4

Annexures

ANNEXURE-1 To,

THE PRESIDENT OF INDA

Acting through the Controller of Stores

Diesel Locomotive Works, Varanasi (U.P.), INDIA

Offer FORM for Tender No..................................Date of opening.......................Time.......................Hours

1. We......................hereby certify that we are established manufacturer or authorized representative of Ms.....................................with factories at..............................which are fitted with modern equipment and where the

production methods. quality control and testing of all materials and parts manufactured or used by us are open to inspection by the representative of Indian Railways. We hereby offer to supply the following items at the prices and within the period of delivery indicated below :

Agency Total FOB value of Item Description Specification Unit Qty. FOB Price Per unit exclusive of Commission offer per unit (inclusive

No Agency commission (in the per unit of Agency commission Terms of Delivery Gross

currency/currencies of manu- (In the currency/ in the currency/curren- payment period Weight facturer‟s conuntry/countries currencies of cies of manufacturer‟s and dime

or U.S.$ manufacturer‟s country/countries or U.S. nsions of pac-

country/countries kage per unit or U.S.$

1 2 3 4 5 6 7 8 9 10 11

2 We are agreeable to payment of agency commission to our Agents in India in non-convertible Indian Rupees. The relevant information is given below.

(To be filled in by the tenderer)

(a) The name and address of the Agent................................................ (b) Service to be rendered by the Agent................................................

(c) Amount of remuneration for the Agent.............................................

3 it is hereby certified that we have understood the Instructions to Tenderers, and also the General and Special Conditions of Contract attached to the tender and have thoroughly examined specifications drawings and/or pattern. qoted in the „Schedule of Requirement‟s and are thoroughly aware of the nature of stores required and our offer is to the supply stores strictly in accordance with the requirements and according to the terms of the

tender. We agree to abide soley by the General and special Contitions of Contract and other conditions of the tender in accordance with the tender documents if the contract is award to us.

4 We hereby offer to supply the stores detailed above or such portion thereof, as you may specify in the acceptance of tender at the price quoted and agree to hold this offer open for acceptance for a period of 150 days form the date of opening of tender. We shall be bound by the communication of acceptance despatched within the prescribed time.

45

Section 4 Annexures



5 Earnest Money/Bid Guarantee for and amount equal to.................................is enclosed in the form specified in Clause-6 of the „Instructions to Tenderers‟. Dated.....................................................

Note- (i) The tenderers may prepare their own offer forms as per this proforma.

(ii) No change in the proforma is permissible. (iii) No erasurers or alterations in the text of the offer are permitted. Any correction

made in the offer shall be initialled by the tenderer.

(iv) Please refer to clause 3.2 of Instructions to Tenders be for filling column 8. (v) FIGURES IN Column 6 to 9 (both inclusive) Should be in both figures and words

6 If any firm wish to quote on CFR basis, then in addition to above details complete breakup of pricing (component of freight, insurance etc.) should be indicated.

Signature and Seal of Manufacturer / Tenderer

46

Section 4 Annexures



ANNEXURE-2

THE PRESIDENT OF INDA

Acting through the Controller of Stores OFFER FORMS

for Tender No.....................................Date of opening.................................. Diesel Locomotive Works,

Varanasi (U.P.), INDIA Time..................Hours

1 We...........................hereby certify that we are established firm of manufacturers Ms.................. ...............With factories at...................................

..................................................which are fitted with modern equipment and where the production methods. quality control and testing of all materials and parts manufactured or used by us are open to

inspection by the representative of Indian Railways. We hereby offer to supply the following items at the prices and within the period of delivery indicated below :

Price Per unit Total value of offer Terms of Delivery

Item No Description Specification Unit Qty. F.O.R. Destination (in Indian Rupees) Payment Period

(In Indian Rupees)

1 2 3 4 5 6 7 8 9

Break-up of price In „Column-6

(In Indian Rupees)

Packing and

Ex-factory price Excise duty Other Levies Sales tax forwarding in F.O.R. Station of Freight to Insurance charges. F.O.R. Total

Detail despatch price destination (if any) Destination (in Indian Rupees)

a b c d e f g h i j

Breack-up Ex-factory price in „Column-10 (a) Gross weight and dimen-

(in Indian Rupees) of package per unit

11 12

C.I.F. value of imported Duties on Other Total Ex-factory Contry or origin from where

equipment/components 11-a levies Incidentals Value added component in India price components are imported

a b c d e f g

Stores Labour Overheads & others

Value in Indian Rs.

47

Section 4 Annexures



% age

2 It is hereby certified that we have understood the Instructions to Tenderers, and also the General and Special Conditions of Contract attached to the tender and have thoroughly examined

specifications drawings and/or pattern. quoted in the „Schedule of Requirements and are thoroughly aware of the nature of stores required and our offer is to supply stores strictly in accordance with

the requirements and according to the terms of the tender. We agree to abide solely by the General and special Conditions of Contract and other conditions of the tender in accordance with the

tender documents if the contract is award to us.

3 We hereby offer to supply the stores detailed above or such portion thereof, as you may specify in the acceptance of tender at the price quoted and agree to hold this offer open for acceptance for a

period of 150 days form the date of opening of tender. We shall be bound by the communication of acceptance dispatched within the prescribed time.

4. Earnest Money/Bid Guarantee for and amount equal to.................................is enclosed in the form specified in Clause-6 of the „Instructions to Tenderers‟.

Dated.....................................................20

Note- (i) The tenderers may prepare their own offer forms as per this proforma. Signature and seal of Manufacturer/Tenderer

(ii) No charge in the proforma is permissible.

(iii) The tenderers should Indicate whether they possess the necessary industrial license same from Government of India for Manufacturing and marketing the items offered. If where a

collaboration with a foreign firm for manufacturing of the items offered is involved the details of the same should be indicated.

(iv) No erasurers or alterations in the text of the offer are permitted. Any correction made in the offer shall be initialed by the tenderer.

(v) The detailed break up of ex-factory price should be indicated here and if so required by the purchaser the tenderer shall produce satisfactory proof in regard to the reasonableness of the same.

(vi) Figures in Column 6,7,10 &11 Should be both in figures and words.

48

Section 4 Annexures



ANNEXURE-3

PROFORMA FOR PERFORMANCE STATEMENT

(FOR A PERIOD OF LAST 3 YEARS)

Tender No.........................................................................Date of Opening............................................................Time.................................................Hours

Name of the Firm....................................................................................................................................................................................................................

Date or completion Has the equipment

SL NO. Order placed by Order No. Description and quantity Value of of delivery Ramarks indicating been satisfactorily

(full address of purchaser) and date of stores ordered order ..................... reasons for late delivery commissioned and

As per Actual if any is it giving trouble

contract free service?

Signature and seal of the Manufacturer/Tenderer

49

Section 4 Annexures



Annexure 4

Proforma for Equipment & Quality Control

Tender No. __________________________ Date of Closing __________ Time _____Hrs

1. Name & Full address of the firm:

2. Telephone/ Fax No. Office/ Factory/ Works

3. Location of the Factory/ Works

4. Location of the Factory/ Works

5. Details of Industrial licence, wherever required as per statutory regulations

6. Details of Plant & machinery erected and functioning in each department (monograph & description pamphlets be supplied, if available)

7. Details of the process of manufacture in the factory in brief

8. Details of stocks of raw material held

9. Production capacity of the item(s) quoted for, with the existing plant & machinery

9.1. Normal

9.2. Maximum

10. Details of arrangement for quality control of products such as laboratory testing equipments etc.

11. Details of staff

11.1. Details of technical supervisory staff-in-charge of production & quality control

11.2. Skilled labour employed

12. Maximum number of workers (skilled & Unskilled) employed on any day during the 18 months preceding the date of application

13. Are you registered with the Directorate General of Supplies & Disposal, New Delhi, India or any of the Zonal Railways/ Production units? If so, furnish particulars of registration, period of currency, etc.

14. Are you a small scale unit registered with the NSIC, India? If so, furnish particulars of registration, period of currency, etc.

15. Is your unit an ISO certified unit? If so, furnish particulars of registration, period of currency, etc.

Signature & Seal of the Bidder

Date:_____________ Place:_____________

50

Section 4 Annexures



Annexure 5

DELETED

51

Section 4 Annexures



Annexure 6

PROFORMA BANK GUARANTEE FOR BID

GUARANTEE/EARNEST MONEY

(ON BANK'S LETTER HEAD WITH ADHESIVE STAMP)

Ref..............................

Date...................................

Bank Guarantee No......................................................

To

THE PRESIDENT OF INDIA,

acting through the FA & CAO,


Varanasi (U.P.), INDIA

Dear Sir,

In accordance with your invitation to tender No................................................... for supply

of.........................................................M/s....................................................................... hereinafter

called the tenderer with the following Directors on their Board of Directors/Partners of the firm :

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

wish to participate in the said tender for the supply of..............................................................

As a Bank Guarantee against Bid Guarantee for a sum of ….........................................

……………………………………….(In words and figures) valid for (180) one hundred and eighty

days from.............................................required to be submitted by the tenderer as a condition for the

participation, this bank hereby guarantees and undertakes during the above said period of (180) one

hundred and eighty days to immediately pay, on demand by the FA&CAO, Diesel Locomotives

Works , Varanasi, (U.P.)INDIA, in writing the amount

of...............................................................................................(in words & figures) to the FA&CAO,

Diesel Locomotive Works, Varanasi, (U.P.), INDIA, and without any reservation and recourse, if :-

i. the tenderer after submitting his tender, modifies the rates or any of the terms and

conditions thereof, except with the previous written consent of the purchaser; or

ii. the tenderer withdraws the said bid within 150 days after opening of bid; or

iii. the tenderer having not withdrawn the bid, fails to execute the contractual documents

within the period provided in the contract; or

iv. having executed the contract fails to give the bonds so aforesaid within the period

provided in the contract.

The guarantee shall be irrevocable and shall remain valid up to 4.00 P.M.

on...................................................... if further extension to this guarantee is required, the same shall

be extended to such required period on receiving instruction from M/s..................................................

....................................................................on whose behalf this guarantee is issued.

52

Section 4 Annexures



Date................................. Signature..................................

Place................................. Printed Name............................

Witness.............................. .................................................

(Designation)

.........................................

(Banks's Common Seal)

53

Section 4 Annexures



Annexure 7

DELETED

54

Section 4 Annexures



Annexure 8

D E L E T E D

55

Section 4 Annexures



ANNEXURE-9

DETAILS OF SHIPPING ARRANGEMENTS FOR LINER CARGOES IN

RESPECT OF F.O.B./ F.A.S. CONTRACTS FOR IMPORTS

1 Shipping arrangements will be made by the Controller of Stores, Diesel Locomotive Works,

Varanasi-221004 (India) through their respective Forwarding Agents/Nominees as mentioned below,

to whom adequate notice about the readiness of cargo for shipment should be given by the seller

from time to time at least six weeks in advance of the required position for finalising the shipping

arrangements.

Area Forwarding Agents/Nominees

(a) U.K. including Northern lreland (also Eire), The Shipping Corporation of India Ltd

the North Continent of (West Germany, Shipping House, 245

Holland, Belgium France, Norway, Sweden, Madame Cama Road, Mumbai 400 021

Finland and Denmark) and ports on the (Cable : SHIPINDIA Mumbai)

Continental Sea Board of the Mediterranian Telex : 31 2209 SCID IN

(i.e. France and Western Italian ports) and Telephone : 022-22026905

also Adriatic ports.

(b) U.S.A. & Canada OPT Overseas Project Transport, INC.

(A Thyssen Haniel Logistic Co.,

46, Sellers Street, Kearny-NJ 0702, U. S. A.

Tel. : (201) 998-7771

Telex : 673-3586 OPT

Fax. : (201) 998-7833.

(c) Japan The Shipping Corporation of India Ltd.

Shipping House, 245

Madame Cama Road, Mumbai 400 021

(Cable : SHIPINDIA Mumbai)

Telex : 31 2209 SCID IN

Telephone : 022-22026905

(d) Australia, Algeria, Bulgaria, Romania. The Shipping Corporation of India Ltd.

Czechoslovakia, Egypt Shipping House 245




Telephone : 022-22026905

(e) Russia The Shipping Corporation of India Ltd.

„Shipping House‟ 245,

Madame Cama Road, Mumbi-400 021.

(Cable: SHIPINDIA MUMBAI FOR SOVIND

SHIP)

Telex : 31-2209 SCID IN

Telephone : 022-22026905

(f) Poland The Shipping Corporation of India Ltd.,

„Shipping House‟ 245

56

Section 4 Annexures



Madame Cama Road,

Mumbai-4000 021.

(Cable : SHIPINDIA Mumbai FOR INDOPOL)

Telex 31-2009 SCID IN

Telephone : 022-22026905

(g) Pakistan The Shipping Corporation of India Ltd.

Shipping House, 245




Telephone : 022-22026905

(h)Other areas not specifically The Shipping Corporation of India Ltd.

Mentioned above Shipping House, 245




Telephone : 022-22026905

2 BILL OF LADING

The Bill of Lading should be drawn to indicate „Shipper and Consignee‟ as under :-

SHIPPER : The Government of INDIA.

CONSIGNEE : As per consignee‟s particulars in the contract, (The name and address of the

„Port Consignee‟ and „Ultimate Consignee‟ should both be indicated).

3 Two non-negotiable copies of the Bill of Lading indicating the freight amount and discount, if

any allowed, should be forwarded to the Controller of Stores, Diesel Locomotive Works,

Varanasi-221004 (India) after the shipment of each consignment is effected.

4 The Seller should avoid the use of over-aged vessels for the shipment of the goods under the

contract and if so used, the cost of additional insurance if any shall be borne by the Seller.

57

Section 4 Annexures



Annexure-10

(Please see clause 1.34 of Instruction to Tenderes)

PROFORMA FOR INDICATING PARTICULARS OF CARGOES

S. No.

Name of the supplier with

telegraphic/postal address

/Fax No.

Name of the consignee with

telegraphic/postal address

Description

Quantity

Cargo availability, whether

shipload or parcel, if parcels,

size of parcels.

Period over which shipment

to be completed

Loading Port

Discharge Port

Nature of contract, FOB of

CFR

Any special conditions in the

58

Section 4 Annexures



contract relating to ship.

Signature and seal of Manufacturer /Tenderer

Note :- This form should be filled in and sent (in duplicate) to the Controller of Stores, Diesel Locomotive Works, Varanasi-221004 (India) with a copy

to the Executive Director, Railway Stores (P) Ministry of Railways, Railway Board, Rail Bhawan, New Delhi-11001, INDIA as soon as possible after the

relevant contract is finalized.

*****

59

Section 4 Annexures



ANNEXURE-11 (Please see clause, 2.3 and 7.6 of „Instructions to the Tenderers‟)

PROFORMA FOR STATEMENT OF DEVIATIONS

(1) The following are the particulars of deviations from the requirements of the tender

specifications :-

CLAUSE DEVIATION REMARKS

(Including justification)

(2) The following are the particulars of deviations from the requirements of the Instructions

to Tenderers, General and Special conditions of Contract :-

CLAUSE DEVIATION REMARKS

(Including justification)

Signature and seal of the

Manufacturer/Tenderer

Note :- Where there is no deviation, the statement should be returned duly signed with an

endorsement indicating “No Deviations”.

60

Section 4 Annexures



Annexure 12

PROFORMA OF BANK GUARANTEE FOR PERFORMANCE

(i.e. S.D.)

(ON BANK’S LETTER HEAD WITH ADHESIVE STAMP)

Ref.................... Date...............................

Bank Guarantee No. ..........................

To


Acting through the FA & CAO,


Varanasi (U.P.), INDIA

1 Against contract vide Advance Acceptance/Contract No. of the Tender

No...........................dated...........................covering supply of

....................................................(hereinafter called the said „contract‟) entered into between the

President of India and.................................. (herein after called the Contractor), this is to certify that

at the request of the Contractor we............................................................................. Bank Ltd., are

holding in trust in favour of the President of India, the amount

of........................................................................(Write the sum here in words) to indemnify and keep

indemnified the President of India (Govt. of India) against any loss or damage that may be caused to

or suffered by the President of India (Govt. of India) by reason of any breach by the Contractor of

any of the terms and conditions of the said contract and/or the performance thereof. We agree that the

decision of the President of India (Govt. of India), whether any breach of any of the terms and

conditions of the said contract and/or in the performance thereof has been committed by the

Contractor and the amount of loss or damage that has been caused or suffered by the President of

India (Govt. of India) shall be final and binding on us and the amount of the said loss or damage shall

be paid by us forthwith on demand and without demur to the President of India (Govt. of India)

2 We................................................................... Bank Ltd., further agree that the guarantee

herein contained shall remain in full force and effect during the period that would be taken over

satisfactory performance and fulfillment in all respects of the said contract by the Contractor i.e.

till……………………………………..(viz. the date, up to 12 months after the date of last

shipment/delivery of the goods ordered) hereinafter called the „said date‟ and that if any claim

accrues or arises against us................................................................ Bank Ltd., by virtue of this

guarantee before the said date the same shall be enforceable against

us............................................................................ Bank Ltd., (notwithstanding the fact that the same

is enforced within six months after the said date), provided that notice of any such claim has been

given to us..................................................................Bank Ltd., by the President of India (Govt. of

India) before the said date, Payment under this letter of guarantee shall be made promptly upon our

receipt of notice to that effect from the President of India (Govt. of India).

3 It is fully understood that this guarantee is effective from the date of the said contract and that

we.............................................. Bank Ltd. undertake not to revoke this guarantee during its

currency without the consent in writing of the President of India (Govt. of India).

61

Section 4 Annexures



4 We undertake to pay to that Government any money so demanded notwithstanding any

dispute or disputes raised by the Contractor in any suit or proceeding pending before any court or

tribunal relating thereto, our liability under this present being absolute and unequivocal.

The payment so made by us under this bond shall be a valid discharge of our liability for

payment thereunder and the Contractor shall have no claim against us for making such payment.

5 We.....................................Bank Ltd., further agree that the President of India (Govt. of India)

shall have the fullest liberty without affecting in any manner our obligations hereunder to vary any of

the terms and conditions of the said contract or to extend time of performance by the Contractor from

time to time or to postpone for any time or from time to time any of the powers exerciseable by the

President of India (Govt. of India) against the said Contractor and to forebear or enforce any of the

terms and conditions relating to the said contract and

We.....................................................................Bank Ltd., shall not released from our liability under

this guarantee by reason of any such variation or extension being granted to the said Contractor or for

any forbearance and/or omission on the part of the President of India or any indulgence by the

President of India to the said Contractor or by any other matter or thing what-so-ever, which under

the law relating to sureties, would but not for this provision have the effect of so releasing us from

our liability under this guarantee.

6 This guarantee will not be discharged due to the change in the constitution of the Bank or the

Contractor.

7 BG (s) being furnished will be honoured under all conditions. Any doubt about the

genuineness of stamp-paper used in BG will not render BG invalid because stamp-paper has

been purchased by the vendor/contractor of DLW/Varanasi namely M/S.

………………………………………….........................................................for contract

no.................................................................. dated................................................................... and

,therefore, is responsible for its genuiness.

Date .........................

Place .........................

Witness ......................... Signature.........................................

Printed Name..................................

......................................................

(Designation)

................................ Bank‟s Common Seal

62

Section 4 Annexures



Annexure 13

PROFORMA OF BANK GUARANTEE FOR 10% CONTRACT VALUE

TOWARDS WARRANTY GUARANTEE

To


Acting through the FA & CAO,


Varanasi-221004 (U.P.), INDIA

Sub:- Guarantee No..................................for.............................. (Amount). Covering

equipment (s) Serial No................................................supplied to (Consignee/s)

Ref.:- Contract No............................................dated........................................... Placed

on M/s.................................................................................................................

1. WHEREAS M/s...............................................................on of our constituents, (hereinafter

called the “Seller”) have agreed to sell to you (hereinafter referred to as the “Government”). No.

of......................... (give description ) as per contract No. ........................... dated

........................................(hereinafter called “the said contract”)

2 (a)* AND WHEREAS according to the terms of said contract, it has been stipulated that

payment of 100% of the value of the stores would be made, provided that the Seller furnish to the

Purchaser a Bank Guarantee from a recognized bank, acceptable to the Purchaser for 10 per cent of

the value of the said contract valid for a period covering in full the Guarantee period as per the

warranty clause of the said conditions of the contract, being the conditions attached to and forming

part of the said contract.

OR

(b)** AND WHEREAS according to the terms of said contract, it has been stipulated that

payment of ------% (As per P.O. terms & conditions) of the value of the stores would be made,

provided that the seller furnish to the Purchaser a bank guarantee from a recognized bank, acceptable

to the Purchaser for 10% of the value of the said contract, Valid for a period covering in full the

Guarantee period as per the warranty clause of the said conditions of the contract, being the

conditions attached to and forming part of the said contract.

3 AND WHEREAS the Sellers have approached us to give the said Bank Guarantee on their

behalf in your favour for an amount representing 10 percent of the value of the stores despatched

which you have agreed to accept.

4 That in consideration of the promises and at the request of the said Sellers, we hereby

irrevocably undertake and guarantee to pay to the Government of India or at such other place as may

be determined by you forthwith on demand and without any demur any sum upto a maximum

amount of.............................. (Rs..........................) representing 10 percent of the value of the stores

despatched under the said contract, in case the sellers make default in paying the said sum or make

any default in performance observance or discharge of the guarantee contained in the said contract

till the said date as defined in para 8 of this guarantee.

5 We .................................................................................. (Name & Address of Bank) agree that

the decision of the Government whether any default has accrued or has been committed by the

Sellers in the performance observance or discharge of the guarantee aforesaid shall be conclusive and

binding on M/s...............................................................

63

Section 4 Annexures



6 Government shall be at liberty from time to time to grant or allow extension of time or give

other indulgence the said Sellers or to modify the terms and conditions of the contract with the said

Sellers without affecting or imposing this guarantee or our liability hereunder.

7 We..........................................................(Name & Address of Bank) undertake to pay to the

Government any money so demanded notwithstanding any dispute or disputes raised by the Sellers in

any suit or proceeding pending before any court or Tribunal relating thereto our liability under this

present being absolute and unequivocal.

The payment so made by us under this bond shall be a valid discharge of our liability for

payment thereunder and the Sellers shall have no claim against us for making such payment.

8 (a)* This bank guarantee comes into force when the balance ten percent of the value of the

stores shipped per Vessel ........................................vide Bill of Lading

No.............................................dated............................................or R/R, firm‟s challan

No.........................................dated........................................ (in the case of indigenous Contracts)

under the said contract, has been paid and will remain in full force and effect upto...............................

i.e. for a period of .........................................months counted from the date of placing the stores in

service and shall continue to be enforceable for further three months called the said date i.e.

upto………………………………..hereinafter.

OR

(b)** This bank guarantee comes into force with immediate effect i.e. from the date of issue and

will remain in full force and effect upto--------------------------- i.e. for a period of ----------------

--months counted from the placing the stores in service and shall continue to be enforceable for

further five months called the said date i.e. up to ---------------------- hereinafter.

9 This guarantee will not be discharged due to the change in the constitution of the Bank or the

Sellers.

10 That no claim under this guarantee shall be entertained by us unless the same has been

preferred by the Government within the said date.

11 BG (s) being furnished will be honoured under all conditions. Any doubt about the

genuineness of stamp-paper used in BG will not render BG invalid because stamp-paper has been

purchased by the vendor/contractor of DLW/Varanasi namely M/s.

.................................................................................................for contract no..........................

dated.......................................... and, therefore, is responsible for its genuineness.

Note : (*)(**) strikeout whichever is not applicable.

Date .........................

Place .........................

Witness ......................... Signature.........................................

Printed Name..................................

......................................................

(Designation)

................................

Bank‟s Common Seal

64

Section 4 Annexures



ANNEXURE-14

WORK TEST CERTIFICATE

Unless otherwise indicated, Work Test Certificate for imported items should be from manufacturer

(On the letter head of the manufacturer)

1 P.O. No.

2 Description & Part No.

3 DLW drg. and specification reference :

(In case the same is as per manufacturer‟s drg. & specn. It should be mentioned)

4 Vendor indentification marking on the components (if any) :

5 Product serial no details, if applicable :

6 Certified that the material identified above has been processed inspected & tested in accordance

with requirements of the purchase order (including applicable drawings & specification and other

technical conditions stipulated in the PO and amendments (if any) and conforms to the requirements

there of. All the relevant records i.e. in - process inspection and testing records as well as other

technical information that may be required by DLW will be retained during the warranty period.

7 We guarantee to replace at destination any parts where manufacturing defects in material or

workmanship have been determined in line with the terms stated in the contract.

Authorised Signatory

(Name & designation)

Suppliers Stamp

65

Section 4 Annexures



ANNEXURE-15

CHECK LIST

(I) Have you submitted the authorisation letter authorising your agent to quote on this tender?

Yes/No

(II) Have you indicated the complete name and address of the agents and details of the services

to be rendered by the agents?

Yes/No

(III) Is the agent going to render after sale service?

Yes/No

(IV) In case the answer to (iii) is yes. confirm that the agent has necessary infrastructure and

completent staff to render the same.

Yes/No

(V) Have you submitted a copy to your agreement with your Indian agent?

Yes/No

(VI) Manufacture or their sole selling agents may note that an agent can represent only one firm

in a tender and any manufacturer cannot submit two offers against a tender through

different sole selling agents or one directly and one through sole selling agent. In such a

situation both the offers will be rejected.

Yes/No

(VII) Have you indicated your Indian Agent‟s income Tax Permanent Account number?

Yes/No

(VIII) Are you aware that any payment against the contract if placed to your Indian Agent directly

by you in currency other than in Indian rupees in aginst the Indian Laws?

Yes/No

(IX) Are you aware that failure to disclose the full amount of remuneration/agency commission

payable to your India Agents shall render the contract void.

Yes/No

66

Section 4 Annexures



Annexure 16

Electronic Clearing Service (Credit Clearing) Model Mandate Form

1) Investor / customer‟s name :

2) Particulars of Bank Account :

A. Name of bank :

B. Name of branch :

Address :

Telephone No. :

C. 9-Digit code number of the bank and branch :

D. Type of account (SB, Current, or Cash Credit) with code (10/11/13)

E. Ledger and Ledger Folio Number :

F. Account number (as appearing on the cheque book) :

(In lieu of bank certificate to be obtained as under, please attach a blank cancelled cheque or photocopy of a cheque or front page of your savings bank passbook issued by your bank for verification of the above bank particulars)

3) Date of effect :

I hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I would not hold the user institution responsible. I have read the option invitation letter and agree to discharge the responsibility expected of me as a participant under the scheme.

_____________

Signature of Investor / Customer

Date:

Certified that the particulars furnished above are correct as per our records.

Bank‟s Stamp

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Annexure-17

DLW BILL FORMAT

TIN No……….

Name and Address of the firm …………………………………………………………………………………………………………………………………………………………… Bill No…………………………………Date……………………………………………….. Purchase Order No…………………………………………………………………………. Date………………………………………………………………………………………… Name and Address of the Consignee…………………………………………………….. ……………………………………………………………………………………………………………………………………………………………………………………………….

SN. Authority for Purchase

Description of Stores

Number or Quantity

Rate

Price per

Amount

Rs P

Rs P Rs P

Total

1. C.S.T./Sales Tax Amount

2. Freight (if applicable)

3. Excise Duty ( if applicable)

4. Packing and Forwarding charges ( if applicable)

5. Others ( Please specify)

6. PVC Amount ( with calculation sheet enclosed)

………………………………………………………………………………………………………………………………………………

7. Deduction / Discount.

8. Net Amount Payable.

……………………………………………………………………………………………….

(in Words) Rs………………………………………………………………………………

………………………………………………………………………………………………

Dispatch Detail RC NO/ R Note. N0………………………Dated………………………

Inspection Certificate No. …………………………………Dated……………………….

Place and Date ……………………………………………………………………………..

Received

Rs……………………………………..(Rupees…………………………………………………………………………………)

Revenue Stamp

Signature and stamp of Supplier.

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ANNEXURE- 18

Check List for Submission of Bills

1. Whether Bill is prepared in the standard format and is marked ORIGINAL.

2. Whether TIN No. mentioned on the Bill.

3. Whether Complete firm‟s name & address, P.O. No. & Date, Bill No. & date is mentioned on the Bill.

4. Whether full description of material has been mentioned on the Bill.

5. Whether Bill has been prepared as per PO i.e. rate of material, ED, CST, Packing charges, Fright etc. is correct.

6. Whether total amount payable is mentioned on the Bill in both figures as well as in words also.

7. Whether Bill is signed by the competent authority of the firm and firm‟s seal is impressed.

8. Whether all documents as per PO i.e. Bill in duplicate, ED documents, Challan copy, VAT Certificate & Back-log Certificates, Freight documents, if required, R. Note, Inspection Certificate, MODVAT Certificate etc, are enclosed with the Bill, and the same are listed in the Bill itself.

9. If Modification Advice is issued against the PO, the copy of the same is attached with the Bill.

10. Whether NEFT Mandate form with full bank account details duly certified by the Bank is submitted along with Bills (in the case of new firms) .

11. Whether SD/WBG/PBG are submitted as per PO requirement.

12. Any cutting / over-writing / whitener used should be attested by the Signing Authority.

Details Of Enclosures To Be Enclosed With Bill

1. R.C. No. / Other Proof of Dispatch…………………Date…………………......................

2. R.O. No……………………………….......................Date…………………………………..

3. Inspection Certificate No. ……………....................Date…………………………………..

4. MODVAT Certificate No. ………………..................Date………………………………….

5. Excise ( Gate Pass) No………………….................Date……………………..................

6. Amendment Letter, if any, No…………..................Date…………………………………..

7. VAT Certificate as per PO Clause.

8. Back-log Declaration as per P.O. Clause.

9. Other Remarks.

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ANNEXURE- 19

1.0 List of Generic Products notified by Department of Electronics & IT

S.No. Items 1 Desktop PCs

2 Dot Matrix Printers

3 Tablet PCs

4 Laptop PCs

5 Contact Smart Cards

6 Contactless Smart Cards

7 LED products

8 Biometric Access Control / Authentication Devices

9 Biometric Finger Print Sensors

10 Biometric Iris Sensors

2.0 List of Generic Products notified by Department of Telecommunications :

S.No Items 1 Encryption/UTM Platforms (TDM and IP)

2 Core/Edge/Enterprise routers

3 Managed Leased Line Network Equipment

4 Ethernet Switches (L2 and L3), Hubs, etc.

5 IP based Soft switches, Media Gateways

6 Wireless, Wireline PABXs

7 CPE (including Wifi Access points and Routers, Media Converters), 2G/3G Modems, Leased line modems etc.

8 Set-Top Boxes

9 SDH/Carrier Ethernet/Packet Optical Transport Equipment

10 DWDM/CWDM systems

11 GPON Equipments

12 Digital Cross-Connects/MUXs

13 Small size 2 G/3 G GSM based Base Station Systems

14 LTE based on broadband wireless access systems (e Node B, EPC etc.)

15 Wi-Fi based broadband wireless access systems (Access Point, Aggregation Block, Core Block, etc.)

16 Microwave Radio systems (IP/Hybrid)

17 Software Defined Radio, Cognitive Radio systems

18 Repeaters (RF/RF-over-optical), IBS and Distributed Antenna system

19 Satellite based systems – Hubs, VSAT, etc.

20 Copper access system (DSL/DSLAM),

21 Optical Fiber Cable.

22 Network Management systems

23 Security & Surveillance communication systems (video and sensor based).

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3.0 Format for Affidavit of Self Certificate regarding Domestic Value Addition in an Electronic Product to be

provided on ₨ 100/- Stamp Paper.

Date:

I, ___________ S/o, D/o, W/o______________________, Resident of _____________ do hereby solemnly affirm and declare as under: That I will agree to abide by the terms and conditions of the policy of Government of India issued vide Notification No.8(78)/2010-lPHW dated.10.02.2012.

That the information furnished hereinafter is correct to the best of my knowledge and belief and I undertake to produce relevant records before the procuring authority or any authority so nominated by the Department of Electronics and Information Technology, Govt. of India for the purpose of assessing the domestic value-addition.

That the domestic value-addition for all inputs which constitute the said electronic product has been verified by me and I am responsible for the correctness of the claims made therein. That in the event of the domestic value addition of the product mentioned herein is found to be incorrect and not meeting the prescribed value-addition norms, based on the assessment of an authority so nominated by the Department of Electronics and Information Technology, Government of India for the purpose of assessing the domestic value-addition. I will be disqualified from any Government tender for a period of 36 months. In addition, I will bear the cost of such an assessment. That I have complied with all the conditions referred to, in the Notification No.8 (78)/2010-lPHW dated.10.02.2012 wherein preference to domestically manufactured electronic products in Government procurement is provided and that the procuring authority is hereby authorized to forfeit and adjust my EMD and other security amount towards such assessment cost and I undertake to pay the balance, if any, forthwith. I agree to maintain the following information in the Company‟s record for a period of 08 years and shall make this available for verification to any statutory authorities: i) Name & details of the Domestic Manufacturer (Registered office, Manufacturing Unit Location, nature of legal

entity).

ii) Date on which this certificate is issued.

iii) Electronic Product for which the certificate is produced.

iv) Procuring agency to whom the certificate is furnished.

v) Percentage of domestic value addition claimed.

vi) Name and contact details of the unit of the manufacturer.

vii) Sale price of the product.

viii) Ex-factory price of the product.

ix) Freight, Insurance and handling.

x) Total Bill of Material

xi) List and cost value of inputs used for manufacture of the electronic product.

xii) List and total cost of inputs which are domestically sourced. Please attach certificates from suppliers, if the input is not in-house.

xiii. List and total cost of inputs which are imported, directly or indirectly.

For and on behalf of ______________________ (Name of firm/entity) Authorised signatory (To be duly authorized by the Board of Directors) <Insert Name, Designation and Contact No.>

4.0 Format for Domestic Value Addition in terms of guidelines issued for procurement of Notified Electronic

Products by Government:

Item No

Item Description

Manufacturer/ Supplier

Country of Origin

Value Domestic Value addition in %

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ANNEXURE –20

Notified Electronic Products having ―Preference for Domestically Manufactured Electronic Products in Government Procurement‖:

I. Desktop Personal Computers (PCs)

For the purpose of this Notification, a Desktop PC shall necessarily consist of a CPU, Memory, Hard disk drive, Keyboard, Mouse and a separate or integrated display unit and should be able to operate independently.

Percentage of procurement for which preference to domestically manufactured PCs is to be provided

(in value terms)

Percentage of domestic value addition in terms of Bill of Material (BOM) required for the desktop PCs to qualify

as domestically manufactured

50% 30% in year 1

Criteria BOM classified as domestic: The domestic BOM of desktop PCs would be the sum of cost of main

inputs as specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

Main inputs of BOM / Stages for manufacture of desktop PCs

Value addition required for the inputs to be classified domestic BOM

1 2

Processor Domestic ATMP/ fabrication or both

Memory

Domestic assembly of imported memory chips on imported/ indigenously manufactured bare PCB/ domestic ATMP / fabrication / or combination.

Hard Disk Drive Domestic assembly and testing from imported indigenously manufactured parts and components

LCD Monitor Domestic assembly from imported LCD panel where in plastics moulding and stamping of metal parts is done domestically and testing / domestic fabrication of LCD panel or both.

DVD Drive Domestic assembly and testing from imported / indigenously manufactured parts and components

Cabinet + SMPS

Domestically manufactured cabinet and domestic assembly and testing of SMPS from imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 10% (of the value of part and components used in the manufactured of “ SMPS ) in year 2 which will increase to minimum 20% of the value of part and components used in the manufactured of “ SMPS ) in year 3 and subsequent years

Key Board/ Mouse Domestic assembly and testing from imported /indigenously manufactured parts and components

Mother Board Domestic assembly and testing from imported / indigenously manufactured parts and components except value of bare PCB

Bare PCB Domestically manufactured

Final Assembly / Testing and design / development

Domestically assembled / tested and any Intellectual Property (IP) resident in India.

II. Dot Matrix Printers :

A Dot Matrix printer is type of impact Printer that forms dot on a paper by a metal pin of diameter 0.2 mm to 0.3 mm which is driven by electro magnet based on solenoid principle and required character matrix is produced by horizontal and vertical resolution of the dot matrix print head. Dot matrix printers can create carbon copies and carbonless copies based on mechanical pressure of pin.

Percentage of procurement for which preference to domestically manufactured Dot Matrix Printers is to

be provided (in value terms)

Percentage of domestic value addition in terms of Bill of Material (BOM) required for the Dot Matrix Printers to

qualify as domestically manufactured

50% 40% in year 1

Criteria BOM classified as domestic: The domestic BOM of Dot Matrix Printers would be the sum of the cost of

main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

Main inputs in BOM / Stages for manufacture of Dot Matrix Printers


1 2

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Main PCB

Domestic assembly and testing from imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “Main PCB” will be minimum 10% (of the value of part and components used in the manufactured of “ Main PCB in year 2 which will increase to minimum 15% the value of part and components used in the manufactured of “ Main PCB) in year 3 and subsequent years except value of bare PCB


SMPS

Domestically assembly and testing from imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 10% (of the value of part and components used in the manufactured of “ SMPS ) in year 2 which will increase to minimum 20% of the value of part and components used in the manufactured of “ SMPS ) in year 3 and subsequent years

Carriage Motors and Paper feed motors

Imported as sub assembly and tested domestically along with main printer mechanism.

From Control Panel Domestic assembly and testing from imported/ indigenously manufactured parts and components

Home position/ Paper End Sensors

Domestic assembly and testing from imported/ indigenously manufactured parts and components

Main Printer Cabinet & other small plastic components

Domestic Moulding of Printer Cabinets and other parts

Printer Mechanism Assembly Domestic assembly using indigenously manufactured rubber platens, small rubber parts , sheets metal components, Plastic Gears and other Plastic Parts with turned steel shafts and above mentioned sensors and motors

Print Heads and inter connecting cables


Final Assembly / testing and design / development

Domestically assembled / tested and any Intellectual Property (IP) resident in India.

III. Tablet Personal Computers:

For the purpose of this notification a Tablet PC shall necessarily consist of an Integrated Motherboard with a broad CPU / Processor , Memory and Power Module; Display Panel ( Touch Panel + LCD/LED Module ) and Integrated Battery and should be able to operate independently.

Percentage of procurement for which preference to domestically manufactured Tablets PCs is to be provided (in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Tablet PCs to qualify at domestically manufactured

50% 30 % in one year

Criteria BOM classified as domestic: The domestic BOM of Tablet PCs would be the sum of the cost of main

inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

Main inputs in BOM / Stages for manufacture of Tablet PC


1 2

Display Panel ( Touch Panel + LCD/LED Module )

Domestic assembly and testing from imported/ indigenously manufactured Touch Panel + LCD/LED Module or combination subject to the condition that from year 3 onwards backlight assembly and testing of the Display Panel shall be done domestically

Integrated Motherboard with a broad CPU / Processor , Memory and Power Module, Semiconductor (i.e. the Semiconductor Chips and module on Integrated Motherboard

Domestically assembly and testing from imported/ indigenously manufactured parts and components except value of bare PCB and Semiconductor BOM (i.e. the Semiconductor Chips and module on Integrated Motherboard) Subject to the condition that the value of domestically manufactured parts and components used in the assembly of “Integrated Motherboard” will be minimum 10% (of the value of part and components used in the manufactured of “Integrated Motherboard) in year 2 which will increase to minimum 20% of the value of part and components used in the manufactured of “Integrated Motherboard) in year 3 and subsequent years. The value of only those Semiconductor Chips and module (including processor and memory) of the Integrated Motherboard less the value of there indigenous design (for which IP is resident in India) on which ATMP operations are carried out domestically will be taken as domestic BOM*

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Section 4 Annexures




Power Adaptor

Domestically assembly and testing from imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “Power Adaptor” will be minimum 20% (of the value of part and components used in the manufactured of “Power Adaptor ) in year 2 which will increase to minimum 30%,40% and 50% in years 3, 4 and 5 respectively

Casing Domestically manufactured casing

Battery Domestic assembly and testing from imported/ indigenously manufactured parts and components

Accessories ( Camera, Speaker, Wifi, Antenna, etc)


(i) Final Assembly/ Testing and (ii) Design/ Development

(i) Domestically assembled/ tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.

*This shall be reviewed when the Semiconductor Fab in India is operational.

IV. Laptop Personal Computers(PCs):

For the purpose of this Notification, a Laptop PC (commonly known in the market as Laptop/Notebook/Netbook/ Ultrabook etc) shall necessarily consist of a CPU, Memory, Hard disk Drive, Keyboard, Touch pad and/or Trackpoint, an Integrated Display Unit, Integrated Battery and should be able to operate independently.

Percentage of procurement for which preference to domestically manufactured Laptop PCs is to be provided ( in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Laptop PCs to qualify at domestically manufactured

50% 25 % in one year

Criteria BOM classified as domestic: The domestic BOM of Laptop PCs would be the sum of the cost of main

inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

Main inputs in BOM / Stages for manufacture of Tablet PC


1 2

Hard Disk Drive Domestic assembly and testing from imported/ indigenously manufactured parts and components

Display Panel (LCD,LED etc) + Back cover+ Bezel

Domestic assembly and testing from imported/ indigenously manufactured Display Panel , Back cover, Bezel or combination subject to the condition that from year 3 onwards: (i) Back cover shall be domestically manufactured and (ii) Back Light assembly and testing of display panel shall be done domestically

DVD Drive Domestic assembly and testing from imported/ indigenously manufactured parts and components

Cabinet+ Motherboard+ Power Module

Domestic assembly and testing from imported/ indigenously manufactured Cabinet, Motherboard, Power Module or combination except value of bare PCB and Semiconductor BoM (i.e., Semiconductor chips & modules on Motherboard) subject to the conditions that: (I) Value of domestically manufactured parts and components used in the

assembly of “Motherboard + Power Module” will be minimum 10% (of the value of part and components used in the manufactured of “Motherboard + Power Module”) in year 2, which will increase to minimum 20% (of the value of part and components used in the manufactured of “Motherboard + Power Module”) in year 3 and subsequent years and (II) Cabinet shall be domestically manufactured from year 3 onwards.

Semiconductors (i.e. Semiconductor chips and Modules on Motherboard)

The value of only those Semiconductor Chips and modules (including processor and memory) of the Integrated Motherboard less the value of their indigenous design ( for which IP is resident in India) on which ATMP operations are carried out domestically will be taken as domestic BOM *


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Power Adapter

Domestically assembly and testing from imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “Power Adaptor” will be minimum 20% (of the value of part and components used in the manufactured of “Power Adaptor”) in year 2 which will increase to minimum 30%,40% and 50% in years 3, 4 and 5 respectively

Keyboard/ Touchpad and/or Trackpoint


Battery Domestic assembly and testing from imported/ indigenously manufactured parts and components

(i)Final Assembly/ Testing and (ii)Design/ Development

(i) Domestically assembled/ tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The

value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.


V. Smart Cards:

For the purpose of this notification, Smart Card is usually a Credit Card sized plastic card with an Integrated Circuit (IC) contained inside. The IC contains a Microprocessor and Memory. Smart Cards can be contact, contactless and dual interface (both contact & contactless). Some of the applications of Smart Card are Identity Card, Banking Card, Health Card, Vehicle Registration Card etc.

(A) Contact Smart Cards:



50% 30 % in Year 1, 45% in Year 2 & 65% in Year 3 onwards

Criteria BOM classified as domestic Contact Smart Cards: The domestic BOM of Contact Smart Cards would

be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

Main inputs in BOM / Stages for manufacture of Contact Smart Cards


1 2

Plastic Card Body Domestic Manufacturing including sheet cutting and punching, printing, lamination and testing using imported/ indigenously manufactured raw material, parts and components*

IC Chip Module Domestic assembly and testing of IC Chip Module using imported/ indigenously manufactured raw materials, parts and components*

Milling and Embedding of IC Chip Module on Plastic Card

Milling and Embedding of IC Chip Module on Plastic Card done domestically


(i)Domestically assembled/ tested and (ii)Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.


(B) Contactless Smart Cards (Includes Dual Interface Cards):



50% 40 % in Year 1, 50% in Year 2 & 70% in Year 3 onwards

Criteria BOM classified as domestic Contactless Smart Cards: The domestic BOM of Contactless Smart

Cards would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

Main inputs in BOM / Stages for manufacture of Contactless Smart Cards


1 2

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Plastic Card Body Domestic Manufacturing including sheet cutting and punching, printing, lamination and testing using imported/ indigenously manufactured raw material, parts and components*

Card Inlay (Antenna) Domestic assembly and testing from imported/ indigenously manufactured parts and components

IC Chip Module Domestic assembly and testing of IC Chip Module using imported/ indigenously manufactured raw materials, parts and components*

Milling and Embedding of IC Chip Module on Plastic Card

Milling and Embedding of IC Chip Module on Plastic Card done domestically


(i)Domestically assembled/ tested and (ii)Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.


VI. LED Products:

For the purpose of this notification, LED Products are those whose function is to utilize light produced by LEDs and spanning applications in the areas of (i) Illumination, (ii) Optical Displays including true LED TVs (iii) Backlighting, (iv) Signalling and Indication and (v) Transportation.

Percentage of procurement for which preference to domestically manufactured Laptop PCs is to be

provided ( in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Laptop PCs to qualify at

domestically manufactured

50% 50 % in Year 1

Criteria BOM classified as domestic LED Products: The domestic BOM of LED Products would be the sum of

the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table. However, the weightage of total cost of (d) Heat Sink or Thermal Management Solutions, (e) Secondary Optics, (f) System Fixture and Fitting shall not exceed 20% of domestic BOM of the LED Product.

Main inputs in BoM / Stages for manufacture of LED Products

Value addition required for the inputs to be classified domestic BoM

1 2

(a) LED Emitter Packaging from imported/ domestically fabricated bare LED Die subject to the condition that from Year 2 onwards, the bare LED Die shall be domestically fabricated using imported/indigenously manufactured inputs.

(b) Driving Electronics

Domestically assembly from imported/ indigenously manufactured parts and components subject to the condition that the value of domestically manufactured parts and components (excluding the value of bare PCB) used in the assembly of “Driving Electronics” will be minimum 10% (of the total value of part and components used in the manufacture of “Driving Electronics”) in Year 1 which will increase to minimum of 20% of the total value of part and components used in the manufactured of “Driving Electronics”) in year 2 and minimum 30% (of the total value of part and components used in the manufacture of “Driving Electronics”) in Year 3 and subsequent years.

(c) Bare PCB including MCPCB

Domestically manufactured using imported/ indigenously manufactured inputs

(d) Heat Sink or Thermal Management Solutions

Domestically manufactured using imported/ indigenously manufactured inputs.

(e) Secondary Optics Domestically manufactured using imported/ indigenously manufactured inputs.

(f) System Fixture Domestically manufactured

(g) Final Assembly/Testing Domestically Assembled/Tested meeting Indian standards as notified from time to time.

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ANNEXURE- 21 Details of inspection clause and consequences of rejection shall be governed by detailed instructions pertaining to inspection/warranty replacement as Under:

1.0 Pre-inspected material rejected by consignee at the time of receipt-

(i) In case of rejection of pre-inspected goods at consignee end, the material rejection advice/rejection memo shall be sent by consignee to all concerned i.e. firm, purchaser, pre-inspecting agency, paying authority as per the contract etc, without fail.

(ii) Financial recovery: In case payment has been made to the firm for the material, the concerned paying

authority as per contract shall note the rejection advice details in its recovery register for effecting recovery of payments made, as the case may be.

(iii) If the firm desires to have joint inspection, joint inspection of rejected material will held with pre-

inspecting agency and the firm. In case of failure of either of the two parties to associate with joint inspection, the joint inspection should be held by the consignee with whichever of the two parties comes for joint inspection. Irrespective of whether the party(ies) attend joint inspection or not, the modality of joint inspection etc will have to be completed within 21 days of communication of rejection advice to the supplier (in line with IRS Conditions of Contract clause 703). For imported material, the time limit will be 45 days.

(iv) Firm may be permitted to collect the rejected goods only after the firm has deposited the payments

already made by Railway (if any) to the firm or equivalent amount has been recovered for this purpose. (v) In case of replacement supply against the rejected goods, the same should be pre-inspected by same

pre-inspecting agency which passed the material earlier. In line with IRS Conditions of Contract clause 703, no inspection charge will be paid by Railway to the inspection agency for the replacement supply.

(vi) However, in case of component level rejection in an pre-inspected item (which is an assembly) the

replacement supply of that component can be accepted based on firm's internal inspection certificate/guarantee certificate and final inspection by consignee.

2.0 Material rejected in warranty-

I. Materials are rejected in warranty in the following situations:

(a) The material rejected issued to the user (shop) from its associate stores depot. (b) The material rejected was received by the user from a PU or from a stores depot which is not the

associate stores depot of the user.

Catg.I (a): For Warranty failure in shop of material issued from its associate stores depot : All warranty claims will be lodged by the associate depot officer after getting the warranty rejected material from user under advice note of return stores with reasons of warranty rejection indicated therein. Before lodging the warranty claim the associate depot officer will satisfy himself about the correctness of PO and ensure that other details including reason(s) of warranty rejection are available with the advice note of return stores. The warranty claim will be processed following procedure indicated in sub-Para (i), (ii), (iii) and (iv) of Para 1 above except for the following changes: the 'rejection advice' mentioned in Para 1 (i) will be replaced by the 'warranty rejection advice'. The time which can be taken for the completion of modality of joint inspection as per Para 1(iii) will be 45 days (instead of 21 days) from the date of communication of rejection advice to the supplier.

Cat I (b): For Warranty failure in shop/shed of material received from DLW (either under sale issue

note or as a purchased component or rolling stock manufactured at the DLW) :

i) In such cases it may not be convenient for the end user to return the material to the stores depot (against which the original supply was made by the vendor to railway). Thus in all such cases, the warranty rejected material will be kept in safe custody by the end user and the stores depot (which received the original supply) will be advised by the end user about the warranty rejection duly indicating the reason(s) or rejection with a confirmation that the rejected material is under end user's custody.

ii) The stores depot (which received the original supply) will raise warranty claim on the

firm. Before lodging the warranty claim the depot officer will satisfy himself about the correctness of PO and ensure that other details including reason(s) of warranty rejection

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are available from the end user. The warranty claim will be processed following procedure indicated in sub-para (i), (ii), (iii) and (iv) of Para 1 above except for the following changes: the 'rejection advice' mentioned in Para 1 (i) will be replaced by the 'warranty rejection advice'. The time which can be taken for the completion of modality of joint inspection as per para 1 (iii) will be 45 days (instead of 21 days) from the date of communication of rejection advice to the supplier.

II. Warranty quantity replacement: The warranty quantity replacement will be accounted under warranty R-note by the depot officer (which raised the warranty claim as in sub- para I(a) above).

Financial recovery (if any made) against the warranty failure will be refunded to the firm on warranty quantity replacement.

III. Inspection of the replacement supply against warranty rejection:

a) For cases of replacement supply against warranty failure falling in the category I(a) above, the replacement supply should normally be inspected by the same inspection agency which inspected and passed original supply. Thus for I(a), any change in inspection authority for the warranty replacement will necessitate a formal amendment in contract.

b) In case of warranty rejection of item of the category I.(b) above, it may in some cases be difficult to re-use the services of inspection agency which passed the original supply. Similarly for some items, the end user/consignee may not have the requisite inspection facility/ expertise.

Thus for warranty rejection falling in the category I.(b) above:-

(i) The replacement supply can be inspected by the same inspecting agency which inspected and passed the original supply. Payment of inspection charges will be borne by supplier.

OR The replacement supply can be inspected by authorized representative of consignee.

OR The replacement supply can be made by firms own internal inspection certificate.

(ii) The decision on the above will rest with the depot officer who raised the warranty claim and

will be indicated in the warranty claim notice.

c) However in case the warranty failure is of a component of an assembly supplied, the component can be accepted on firm's own Guarantee Certificate/Internal inspection certificate and consignee's final inspection for both the categories {Cat I(a) and Cat I (b)} of warranty failure.

(IV) Place of warranty replacement – For warranty replacement of category I.(a), in order to ensure correct

accountal of warranty replacement, the place of warranty replacement will be the depot which received the original supply. For warranty replacement of failure falling in category I.(b) above, an exemption can be made and the place of replacement supply shall be indicated by the depot officer (at his option) in the warranty claim notice to the firm to be the end-user's place.

(V) For warranty replacement of the category I.(b), due care will be taken by the end user to ensure that

accountal of replacement supply etc. are properly taken care of. After settlement of warranty claim the rejected material will be handed over by the end user to the firm's representative. The end user will also inform the depot officer who raised warranty claim about the replacement.

3.0 At the option of the depot officer/end-user, rectification of the material rejected may be permitted within

railway premises by the firm only after the firm has refunded the payment (if already made by Railway) or equivalent amount has been withheld for this purpose. However, from the date of communication of rejection advice, the rectification activity has to be completed within 21/45 days for indigenous/imported material respectively for rejection of the category covered against Para 1 and 45/90 days for indigenous/imported material respectively for the rejection of the category covered against Para 2. If more time is taken beyond this, applicable ground rent will be levied on the firm.