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BSNL Procurement Manual 2012

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BHARAT SANCHAR NIGAM LIMITED


(A Government of India Enterprise)

MANUAL OF PROCUREMENT OF TELECOM EQUIPMENT AND STORES

(Corrected up to 4th January 2013) (Effective from 1st March 2013)

Issued by MM Section Bharat Sanchar Nigam Limited Bharat Sanchar Bhawan, Janpath New Delhi - 110001 Visit us at: www.bsnl.co.in

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INDEX 1. PREAMBLE ............................................................................................. 5-8 1.1. Introduction ................................................................................................. 6 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. Negotiations Route ...................................................................................... 7 Limited tender Route ................................................................................... 7 Expression of Interest Route ....................................................................... 8 Managed Services and Managed Capacity Route ...................................... 8 Rate Contract Route.................................................................................... 9 E-Procurement ............................................................................................ 9

CHAPTER - 2.................................................................................................. 10-14 2. GUIDELINES FOR USER SECTIONS....................................................... 10 2.1. Role of the User Section ........................................................................... 10 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. Need/ Quantity .......................................................................................... 10 Forecasting Methods ................................................................................. 11 Estimated Rates ........................................................................................ 12 Deciding the Eligibility Criteria ................................................................... 12 Guidelines for Framing the Specifications and Technical Requirements... 12 Schedule of Requirement (SOR) ............................................................... 14 Special Instructions to Bidders and Special Conditions of Contract .......... 14 Authorities competent to purchase goods and their Purchase Powers ..... 14

2.10. Check-List for Requisition for Procurement of Material ............................. 14 CHAPTER - 3.................................................................................................. 16-23 3. BID DOCUMENTS .................................................................................... 16 3.1. Preparation of Tender Enquiry Document ................................................. 16 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 3.8. Standard Tender Enquiry Document ......................................................... 16 Section-1Detailed Notice Inviting Tender (DNIT)& Newspaper NIT.. ...... 17 Section-2 Tender Information ............................................................. .18 Section-3Scope of work, Tech. Specs./ Requirements & SOR.. 17 Section-4 A - General Instructions to Bidders(GIB)...18 Section-4 B - Special Instructions to Bidders (SIB) .................................. 18 Section-5 AGeneral (Commercial) Conditions of Contract (GCC) ....... ..20
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3.9.

Section-5 B Special (Commercial) Conditions of Contract (SCC)...20

3.10. Section 9 Price Schedule ....................................................................... 24 3.11. Pre-bid clarifications and amendments in the tender document ................ 24 CHAPTER - 4................................................................................................ 24-102 4. STANDARD TENDER ENQUIRY DOCUMENT. ........................... 25 SECTION 1 Part A - DETAILED NIT .26 SECTION-1 Part B - NEWSPAPER NIT...........................................................30 SECTION - 2 TENDER INFORMATION.32 SECTION-3 Part A - SCOPE OF WORK .... 34 SECTION-3 PART B - TECH. SPECS./ REQUIREMENTS ..35 SECTION-3 PART C - SCHEDULE OF REQUIRMENTS .....36 SECTION-4 PARTA - GENERAL INSTRUCTIONS TO BIDDERS (GIB) ..37 SECTION 4 PART B - SPECIAL INSTRUCTIONS TO BIDDERS ..57 SECTION-4 PART C - E-TENDERING INSTRUCTIONS TO BIDDERS ..60 SECTION-5 PART A - GENERAL (COMMERCIAL) CONDITIONS OF CONTRACT67 SECTION-5 PART B - SPECIAL (COMMERCIAL) CONDITIONS OF CONTRACT.. .........80 SECTION-5 PART C - GENERAL CONDITIONS of AMC ........82 SECTION-6 ...86 PART A- UNDERTAKING & DECLARATION.86 PARTB - NEAR RELATION CERTIFICATE ....... 87 SECTION -7 - PROFORMAS ........... 88 PART A - BID BOND GUARANTEE ........88 PART B - PERFORMANCE GUARANTEE ....90 PART C - LETTER OF AUTHORISATION FOR ATTENDING BID OPENING .. 92 PART D - Model Amendment Letter Intimating Conditions for Extension OF DELIVERY PERIOD ........93 PART E - Model Amendment Letter for Extension of Delivery Period....95 SECTION- 8 - BIDDER'S PROFILE AND QUESTIONNAIRE ...97 SECTION-9 ..........99 PART-A - BID FORM .....99 PART-B (I) - PRICE SCHEDULE FOR INDIGENOUS EQUIPMENT ......101 PART-B (II) - PRICE SCHEDULE FOR IMPORTED EQUIPMENT ...102
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CHAPTER-5 - BID BOND GUARANTEE OR EARNEST MONEY DEPOSIT (EMD)....103-104 CHAPTER-6 - OPENING OF BIDS...105-108 CHAPTER-7 - FORMATION OF COMMITTEE FOR EVALUATION OF TENDER/ EOI (CET) .... 109-110 CHAPTER-8 - GUIDELINES TO COMMITTEE FOR EVALUATION OF TENDER/ EOI (CET)......111-114 CHAPTER-9 - ACCEPTANCE OF EVALUATION REPORTS AND FRAMING OF PURCHASE PROPOSALS..115-116 CHAPTER-10 - PERFORMANCE BANK GUARANTEE..117-119 CHAPTER-11 - ADVANCE PURCHASEORDER 120 ADVANCE PURCHASE ORDER FORMAT ..121 CHAPTER-12 PURCHASE ORDER .....125 PURCHASE ORDER FORMAT ......126 CHAPTER-13 - GUIDELINES FOR PLACEMENT OF EDUCATIONAL ORDERS..130-131 CHAPTER-14 - PRICING AND PRESERVATION OF THE TENDER DOCUMENTS.132-133 CHAPTER-15 - CONCESSIONS TO MSE UNITS.... 134 CHAPTER-16 - VENDOR RATING SYSTEM ... 135-140 CHAPTER-17 - COPIES OF LETTERS/ CIRCULARS/ ANNEXURES...141-155 CHAPTER-18 - FLOWCHART OF PROCUREMENT PROCESS........156-157

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CHAPTER 1 1. PREAMBLE 1.1. Introduction 1.1.1. BSNL's aim is to procure the material of the specified quality, at the most competitive rates, in a fair, just and transparent manner. Procurement is an important activity in BSNL as about 50% of its budget is used for procurement of materials. Consequent upon corporatization of Department of Telecom Services & Department of Telecom Operations into a Corporate Entity i.e. BSNL, a need has been felt to modify the existing procurement procedure being followed by BSNL Corporate Office as well as by Telecom Circles so as to cut down the procurement time in the present liberalized telecom market. This is all the more necessary as BSNL is facing increasing competition in all types of services and has to respond quickly for procurement of materials as well as its utilization so as not only to keep its market share in the emerging telecom scenario but also to expand and acquire new market segments. 1.1.2. The procurement of materials in BSNL is usually done by inviting tenders and also through M/s ITI Ltd. against their reservation quota (as per guidelines issued by Department of Telecommunications from time-to-time). The procurement is done at two levels viz., BSNL Corporate Office Telecom Circle H/Q 1.1.3. The procurement of materials in BSNL Corporate Office is done for high value critical equipments such as large size switching equipment, transmission equipment, PIJF U/G Cables, WLL equipment & terminals and new technology equipments etc. A list of items being procured at the BSNL Corporate Office is enclosed at Annex-1.1. 1.1.4. Items not covered in the list given at Annex-1.1 stand decentralized for procurement by Telecom Circles. In addition, CGM Telecom Stores, Calcutta has been entrusted with the procurement of following items for some designated Circles: Batteries & power plants. Line & Wire materials. 1.1.5. This manual contains the detailed procedures, guidelines to be followed by BSNL Corporate Office as well as by Telecom Circles to ensure smoother and faster decision making. While the Manual aims at providing broad procedures for procurement of goods/ services, the decision regarding the competent authority should be taken on the basis of Schedule of Delegation of Administrative and Financial Powers issued by Corporate Office. For purchase without quotations and purchase of goods by a purchase committee, the delegation of powers should be referred.

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1.1.6. With the formation of BSNL as a corporate entity in a Liberalized Telecom Market where BSNL has to compete with a large number of competitors, it is imperative for BSNL to serve in the competitive environment. For such a scenario, it is essential not only to see the cost of materials being procured but also the time required for its procurement as well as successful implementation so as to make its presence felt among various competitors. Thus, not only the cost and time factor is required to be taken into consideration but at the same time the cost of opportunity lost due to long gestation period of procurement and implementation is also to be taken into consideration i.e., the business opportunity is also one of the most important factors for implementation of any such venture/project. Hence, under such circumstances, it is essential to take an overall view for cost of material, time for procurement, method of procurement as well as business opportunity for any such venture/ project. In such a situation, the Management Committee / BSNL Board may decide the methodology to be adopted for such procurement taking into consideration cost, time as well as business opportunities as situation warrants. In addition to open tendering, the following methodologies can be adopted: 1.2. Negotiations Route In a situation where the requirement is of an immediate nature and it is necessary to ensure continued supplies or addition of new features from the existing vendors, the BSNL management committee may decide to place repeat orders upto 100% of the quantities contained in the running contract and at a rate negotiated with the existing vendors considering the prevailing market conditions. Depending upon the total value of additional procurement, the negotiation committee can be constituted with the approval of competent authority of BSNL. This route will however be resorted to in exceptional circumstances.

1.3. Limited tender Route 1.3.1. There are certain specific provisions for calling the limited tender appearing in Para 31 to 36 under Rule 128 in the General Financial Rules (GFRs). The limited tender option has to be exercised in specific circumstances as already provided. 1.3.2. In some cases the equipment is sophisticated and requires thorough technical screening, testing and prototype approval by the Telecom Engineering Center/Quality Assurance to ensure that these equipments are of sufficient quality level to be used in public Telecom Network. In such cases an open tender may result in the participation of unknown bidders in open tenders, whose capability in making such equipment is yet to be established. They may submit unrealistic bids which may cause major
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difficulties in the tender evaluation process. In such cases, it would be necessary to screen out such bidders so that BSNL could interact only with bidders who have intrinsic capability as well as proven track record of supplying such sophisticated equipment. Where such equipments are required, it would be worthwhile restricting Bids by issue of limited tenders only to those parties who have proven expertise in manufacture and supply of such equipment and who have prototype approval and production clearance. In such tenders it is essential that the reasons for limiting the tenders to proven suppliers needs to be brought out in the NIT itself so that such an action would stand justified. The issue of such limited tender should have the concurrence of Financial Advisor and personal approval by the head of the unit. 1.4. Expression of Interest Route In situations where BSNL proposes to induct new technology/ equipment/ new service and the specifications of the new technology/ equipment/ new service are not firmed up, BSNL may invite Expression of Interest (EOI) from the available vendors of that technology/equipment/new service. Based on the offers received from the bidders who choose to participate in the EOI, the bidders satisfying the terms of EOI will be short-listed. Before short listing the participants for handing over the tender documents, BSNL may freely interact with them, obtain clarifications and feedback on the delivery of similar equipment/services elsewhere. The short listed bidders will be given the tender document containing detailed technical, commercial and financial conditions. After evaluation by a designated committee, the contract shall be awarded with the approval of competent authority to the successful bidder(s) as per the terms and conditions stipulated in the EOI and the technical, commercial and financial bids. Managed Services and Managed Capacity Route Managed Service is the practice of transferring day-to-day related management responsibility as a strategic method for improved, effective and efficient operations. Typical managed services may be network build (i.e. managed capacity), including planning and design, field operations, Network Operation Center (NOC) operations, application and service development, billing, etc. Many private operators have chosen to outsource laying out the network to third party companies. Using other Service providers telecom towers is the latest trend which falls under managed services. In future, BSNL may also opt for managed service and/ or managed capacity model for which guidelines would be issued subsequently. However, this route shall be applied only on cases specifically approved by BSNL Board/ Management Committee.

1.5.

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1.6.

Rate Contract Route Certain routine items/ services of mass consumption are required in the organization, but their precise quantity may not be known. In such cases, the rate contract (RC) route of procurement may be adopted valid for a specific period not exceeding a year. BSNL should have own rate contracts and should not depend on other agencies for this purpose. E-Procurement Procurement through e-procurement and e-tendering should be encouraged. E-Tendering is the carrying out of the tendering process through the Internet, using e-tendering software applications. This promotes competition for the tender, and provides a process that is efficient for both the buyer and suppliers and a selection process that is transparent to bidders. The process results in a host of tangible and intangible benefits to both parties. The ERP project is being implemented and this would provide a platform for e-procurement in BSNL. The modalities and procedures for e-procurement are being framed and shall be issued separately. Meanwhile a set of instructions in this regard has been brought out in Chapter 4 of the Manual. It has been decided to process the Procurement cases of amount of Rs 1 Crore and above through e-tendering method.

1.7.

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CHAPTER 2 2. GUIDELINES FOR USER SECTIONS 2.1. Role of the User Section 2.1.1. The User Section (i.e. the Unit that has raised the requisition e.g. Planning/ Operations/ Marketing/ Administration/ any other unit) is primarily responsible for deciding and getting approval of the competent authority for the quantities to be procured, the estimated cost of procurement, the eligibility conditions, specifications, technical requirements, Schedule of Requirements and the conditions specific to the procurement. Further, after bid opening, the evaluation is carried out by a Committee whose Chairman/ Convener is usually from the concerned User group. As such, the User Section has a very important role right from inception of the procurement requirement till the finalization of the tender. 2.1.2. Delay in finalization of tenders often leads to delay in project rollout and revenue loss. Often, the delay could be avoided if the tender conditions and requirements are framed meticulously. Some of the common reasons for delays are mentioned below: The eligibility conditions being restrictive, the unsuccessful bidder complains/ goes into litigation. The technical requirements are too idealistic and many bidders are unable to meet some or the other requirement. This leads to loading/ rejection/ relaxation and hence associated delays. Contradictory clauses in the bid document. The technical requirement getting amended during pre-bid clarification leading to ambiguity. As a result, the loading, etc. is challenged by bidders. 2.1.3. In this chapter, broad guidelines are provided which should be kept in view before floating a tender enquiry. The correct decision will continue to depend on experience and good judgment of the concerned sections. 2.2. Need/ Quantity 2.2.1. The starting point of the procurement process for any item is estimation or forecast of its requirements to be reflected in the tender documents. The price of the item has a bearing on the quantity being tendered for example, higher the quantity, more the chances of price being lower for the same item. 2.2.2. Provisioning is the basis for any purchase. Excessive provisioning without taking into consideration the important aspects like available stock, outstanding dues/supplies, past consumption pattern and the average life of the equipment/ item etc. results in infructuous expenditure both in term of procurement cost and the inventory carrying cost. The projection and provisioning must be judicious and justified depending on various factors
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including usage pattern. One time purchase for project or capital equipment/ spares should be properly justified taking into account the obsolescence factor, etc. 2.3. Forecasting Methods 2.3.1. For all items being procured, the forecast of the equipment is obtained from the concerned user branches that plan for the induction of such equipment into the network. The requirement of the equipment, usually for one year, against each project or by each Circle is worked out after discussion with the concerned Head of the circle/ SSA and finalized by the User Branch. Some of the parameters based on which the forecast should be made are as follows. a) Target of gross DELs, WLL, Cellular Mobile, Broadband, Lease Lines, etc to be provided. b) Target of Village Public Telephones to be provided. c) Requirement of Transmission media, Power Plants, Batteries and Terminal Equipment. d) Requirement under "New Programmes/ Services". e) Requirement of service(s) in view of competition from other telecom service providers. f) Special upgradation requirements, including those due to technological, licensing or regulatory requirements. g) Maintenance Requirements. h) Spares. 2.3.2. The lead time for procurement has an important bearing in these requirements e.g. items having longer lead time need to be procured for requirement over a longer time frame whereas items having very short lead time can be procured for commensurately shorter period of requirements. 2.3.3. While forecasting the requirements, it is necessary to keep in mind the necessity of ensuring that the projects covered in the requirements are planned projects which have been approved by the competent authorities, for which funds are provided and are backed-up by estimates sanctioned by the competent authorities. 2.3.4. In the cases where the supplier of the equipment or the production of equipment depends on imported components, it is necessary to have an accurate forecast so that the cost of equipment is shielded from rapid changes in the exchange rate over a longer period of time. 2.3.5. Planning/ forecast for the next financial year should normally start in September of the preceding year to ensure availability of equipment well in time for the next financial year.

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2.4. Estimated Rates 2.4.1. Estimated rates are often worked out in an adhoc, unprofessional and perfunctory manner, at times by extrapolating the price of the lowest capacity equipment or by applying a uniform yearly compounded escalation over the prices of similar equipment purchased few years ago. As estimated rate is a vital element in establishing the reasonableness of prices, it is important that the same is worked out in a realistic and objective manner on the basis of prevailing market rates, last purchase prices, economic indices for the raw material/ labour, other input costs and assessment based on intrinsic value of the item etc. 2.4.2. The estimated rates should be worked out while keeping in view the above on case-to-case basis and should be vetted by finance wing before issue of NIT. 2.5. Deciding the Eligibility Criteria 2.5.1. Credentials, manufacturing capability, quality control systems, past performance for the goods in question, facility for after-sales service, financial background etc. of the supplier(s) may be considered while framing the eligibility conditions. 2.5.2. In case there is a change in the eligibility conditions with reference to the last successful procurement of same item, or if the good is being procured for the first time, then before issue of NIT it should be checked that sufficient bidders would meet the eligibility criteria. A vendor conference, before issue of NIT, with established suppliers, Original Equipment Manufacturers (OEMs) may be held, if required. 2.5.3 The eligible Micro & Small Enterprises (MSEs) shall be given the preferences as detailed in Chapter 15. 2.5.4 Requirement for minimum financial turn over Criteria The prequalification criteria in respect of minimum annual financial turnover of a bidder should be kept in such a way as to facilitate the participation of bidders. It should neither be very stringent nor too lax. It should be decided by the respective Business Unit Head on case to case basis. 2.5.5 Requirement for experience criteria The prequalification criteria in respect of experience of the bidder in respect of having performed similar works should also be part of eligibility. The criteria regarding satisfactory performance of equipment/ stores supplied or satisfactory execution of works etc. may be incorporated according to the requirement of Project/procurement on case to case basis. 2.6. 2.6.1. Guidelines for Framing the Specifications and Technical Requirements The specification of the required good should be framed in such a manner that it attracts sufficient number of bidders. The specification, while
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maintaining the essential requirement of the user department, should not be too restrictive or too lenient. Efforts should also be made to use standard specifications which are widely known to the industry. 2.6.2. The specifications in terms of quality, type etc., as also quantity of goods to be procured, should be clearly spelt out keeping in view the specific needs of the user sections. The specifications so worked out should meet the basic needs of the organization without including superfluous and non-essential features, which may result in unwarranted expenditure. Care should also be taken to avoid purchasing quantities in excess of requirement to avoid unnecessary inventory carrying costs. 2.6.3. Specifications should call for new unused goods. 2.6.4. Specifications shall aim at the latest proven technology and procurement of obsolete goods/ technology shall not be made. 2.6.5. Specifications should have emphasis on factors like efficiency, optimum fuel/ power consumption, use of environmental friendly materials, reduced noise & emission levels, low maintenance cost etc. 2.6.6. The specifications should also take care of the countrys mandatory and statutory regulations, if any, applicable for the goods to be purchased. 2.6.7. Except in case of proprietary purchase from a selected single source, the specification must not contain any brand name, make or catalogue no. of a particular manufacturer and if the same is unavoidable due to some compelling reasons, it should be followed by the words or equivalent. 2.6.8. The specifications and the technical details should be expressed with proper clarity without any ambiguity or double meaning. Wherever necessary, the written specification should be supplemented with drawings for additional clarity etc. 2.6.9. Deciding tender only on the basis of tender sample is too subjective. Therefore, unless specifically decided due to some reasons duly recorded with the approval of competent authority, tender sample clause shall not be incorporated in the specification. If necessary, suitable stipulations for submission of advance sample (before starting bulk production) by the successful bidder may be incorporated in the specification. 2.6.10. In some cases, the technical parameters may be marginally different from the TEC GRs. In such cases, the general principle shall be to adopt the TEC GRs and the BSNL specifications could cover only such additional details and/ or deletions as are specially required to be complied for a particular end use. In cases where TEC GRs do not exist or, alternatively, decision has been taken to try the foreign market also, International Standards (like ISO, ITU, IEEE, EIA etc.) may also be adopted. Where no widely known standards exist, the specification shall be drawn in a generalized and broad-based manner to obtain competitive bids from different sources. As far as possible the specifications shall be drafted keeping the BSNLs requirements in mind. The concerned user section shall
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decide, with the approval of competent authority, the extent of references to full or part of the TEC GR suiting to the actual BSNL network requirements. 2.6.11. For large infrastructure projects or turnkey projects, the Detailed Technical Requirements (DTR) should be prepared covering the solution architecture, services to be supported, existing network architecture, functional and technical requirements of the product, any other requirement. 2.7. Schedule of Requirement (SOR) The Schedule of Requirement (SOR) should be prepared meticulously and it should be clearly indicated that what details are expected in the detailed Bill of Material (BOM) for each SOR item. This issue should be specially considered while dealing with projects having number of SOR items. Special Instructions to Bidders and Special Conditions of Contract The user section in consultation with the MM cell may introduce additional instructions to bidders and special commercial conditions of contract, as necessary. These special conditions and/ or instructions shall constitute the Section- 4 B & 5 B of the tender enquiry document as explained in Chapter 3. Authorities competent to purchase goods and their Purchase Powers An authority which is competent to incur contingent expenditure may sanction the purchase of goods required for use in BSNL in accordance with Schedule of Delegation of Financial Powers issued by BSNL Corporate Office, following the general procedure contained in this manual. The Board of Directors of BSNL has full powers for procurement of goods and services. A demand should not be split into small quantities for the sole purpose of avoiding the necessity of taking approval of the higher authority required for sanctioning the purchase of the original demand. Amendment in any commercial condition of the contract may be with the explicit approval of Management Committee of BSNL Board.

2.8.

2.9. 2.9.1.

2.9.2. 2.9.3.

2.9.4.

2.10. Check-List of Items in a Requisition for Procurement of Material 2.10.1. Information to be given by user section to MM Cell along with requisitions for tender to be issued S. No. Item Status (Y/N) 1 Details of items along with quantity 2 Administrative approval of competent authority 3 Concurrence from finance for the quantity to be tendered 4 Approximate financial implications of procurement. 5 Technical specification No(s) (sufficient copies of
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7 8 9a 9b 9 b (i) 9 b (ii) 10 11 12 13 14

15 16

each Tech. Spec. to be given) Evaluation of Tender on package basis/ individual item basis (package to be defined in case of package evaluation) Single-Stage/Two-stage bidding and single/two stage bids opening Certificate regarding availability of Funds Whether indigenous or import through global Tender In case of import through global tender Against rupee payment or foreign exchange. Source of Foreign Exchange Funding (Free or Credit) Sections 2, 3B, 3C, 4B , 5B and 5C approved by the competent authority Bid Security/ Earnest Money Deposit value Eligibility Criteria approved by Competent authority Delivery Schedule (in case any specific schedule is desired) Training requirement: No. of trainees, type of Training, duration of each type of training, place of training etc. Requirement of spares, tools & testers etc Any special conditions to be added in the Bid Document
)/ concerned head of User Unit

This issues with the approval of PGM ( ) / GM (

(signature) AGM ( )/ DGM ( ) User Section 2.10.2. Incomplete requisitions not containing above data will be returned forthwith. 2.10.3. This checklist duly filled in and approved by the concerned PGM/GM/concerned head of User Unit should be signed by an officer not lower than AGM and submitted along with the Requisition by concerned User Section.

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CHAPTER 3 3. BID DOCUMENTS 3.1. Preparation of Tender Enquiry Document 3.1.1. A set of Standard Tender Enquiry Document has been prepared in line with the purchase policy of BSNL. The broad procedures for tendering process and contract management are available in Section-4 Part A and Section-5 Part A of this Standard Tender Enquiry Document. The officials handling purchases must, at the outset, get themselves acquainted with the rules, regulations, procedures etc. contained in these chapters. This standard document should be utilized for preparing tender enquiry document while incorporating specific requirements on case-to-case basis. 3.1.2. While formulating the tender enquiry document, care should be taken to avoid contradictions among the stipulations incorporated in the document. Duplications should also be avoided, except where duplication is unavoidable and necessary. 3.1.3. The tender enquiry document should not contain any footnote or vague stipulation, which may create confusion in the mind of the bidder. 3.2. Standard Tender Enquiry Document 3.2.1. The text of the Standard Tender Enquiry Document has been grouped under different broad sections in order to streamline the purchase system and also to make the system transparent, comprehensive, efficient and user-friendly. The broad sections of the document are : Section No. Item 1.Part A 1. Part B 2. 3 Part A 3 Part B 3 Part C 4 Part A 4 Part B 4 Part C 5 Part A 5 Part B
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Detailed NIT Newspaper NIT Tender Information Scope of work Technical Specifications/ Requirements Schedule of Requirements(SOR) General Instructions to Bidders(GIB) Special Instructions to Bidders(SIB) E-tendering Instructions to Bidders (If applicable) General (Commercial) Conditions of Contract (GCC) Special (Commercial) Conditions of Contract (SCC)
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5 Part C 6. 7. 8. 9.

General Conditions of AMC ( If applicable) Undertaking & declaration Proforma (s) Bidders profile & Questionnaire. Bid Form & Price Schedule

3.2.2. A reading of the sections of the tender enquiry document, in the above order will make it amply clear about the purpose and instructions behind the same. However, some broad guidelines for using this document (viz. Standard Tender Enquiry Document) are provided in the subsequent paragraphs. 3.3. Section-1Detailed Notice Inviting Tender (DNIT) & Newspaper NIT (NNIT) 3.3.1. The Detailed Notice Inviting Tender (DNIT) should contain: Brief description of the goods and quantity Eligibility conditions Period and terms of delivery Cost of the tender/ bidding document Place(s) and timing of sale of tender documents Place and deadline for receipt of tenders Place, time & date for opening of tenders Amount of Bid Security / Earnest Money Deposit Any other important information 3.3.2. A sample format of NNIT is placed below (refer Section-1Part B of the Standard Tender Enquiry Document also).

NOTICE INVITING TENDER Tender No. MM/./T./2012-13 dated .. Sealed tenders are invited by. (Write Designation of Officer approving inviting of tender) e.g. CMD, BSNL from the prospective bidders for the following work: Name of the work Quantity (With Unit) Estimated cost in Rs.

Last date of receipt of tender is .............. up to Hours. For further detailed information, kindly visit our website www.bsnl.co.in& follow Link for E-tenders by BSNL. DGM (MM)
Tel. No. ,FAX No.

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3.3.3. The Detailed Notice Inviting Tender (DNIT) shall be put in the format at Para 3.3.1 above on the Website of BSNL i.e. www.bsnl.co.in or website of respective Circle and provide a link with NIC website& e-tendering portal. 3.3.4. BSNL shall publish a brief advertisement of equipment/ items to be procured and their quantity for information of prospective bidders in National newspapers in the format as per Section 1 Part B. 3.3.5. The procedure for publication of NNIT in concise format in one National Daily with wide publication and Indian Trade Journal, Kolkata along with its display in detail on BSNL website having a link with NIC will be mandatory for a tender for and above threshold value of Rs. 25 lakhs in case of procurement of goods/ materials/ equipments and Rs. 10 lakhs in case of tender for hiring of services. For tenders below Rs. 25 lakhs in case of procurement and below Rs. 10 lakhs in case of hiring of services, display of NIT on BSNL website with form downloadable facility and sending it to minimum six eligible bidders will be mandatory. 3.3.6. After issue of NIT, eligibility conditions should not be changed. 3.4 Section 2-Tender Information This section provides important information of the tender in respect of Tender methodology, Type of Tender, Envelope system, Bid validity, Payment terms, Delivery Schedule, consignee details etc.

3.5

Section 3- Scope of Work, Technical Specifications/Requirements and SOR 3.5.1 Section 3 A provides information on Scope of Work. 3.5.2 Section 3 B -Technical specifications/Requirements. 3.5.2.1 Aspects to be considered while framing the Technical Requirements and Specifications are mentioned in the previous chapter in Para 2.6. 3.5.2.2 There shall be no change in specifications once tender has been opened. Purchase orders and supplies shall be strictly as per the specifications laid down in the tender. Delivery period extension for purchase order, if considered, shall also be with the same specification as given in tender. Any change in specifications after issue of tender shall be applicable to subsequent tenders only. 3.5.3 Section 3 C-Schedule of requirements (SOR) 3.5.3.1 The Schedule of Requirements (SOR) should clearly indicate all the essential details of the required goods and services, measurement unit, total quantity etc. Para 2.7 of the previous chapter may also be referred. 3.5.3.2 Requirement of detailed bill of material (BOM) for each SOR item should be clearly mentioned wherever applicable. The note in Section-3 Part C of the Standard Tender Enquiry Document in Chapter 4 may be referred. 3.5.3.3 If the list of requirements contains more than one schedule; each schedule
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Note:

should be described in a self-contained manner along with the applicable earnest money. The period of delivery and terms of delivery are also to be incorporated and if these two aspects differ from schedule to schedule, the same should be properly clarified in the Schedule of Requirements. Section-3 Part A, B & C have to be prepared by the concerned user section. Section-4 Part A General Instructions to Bidders (GIB) This section provides all the necessary information as well as guidance to the prospective bidders for preparation and submission of their bids. In addition, this section informs the bidders about the tender opening procedure and also how the bids will be scrutinized, evaluated and ranked to decide the lowest evaluated responsive bid for placement of the contract. This section is to be included unchanged in every tender enquiry document. However, for every purchase case, there will be distinct purchase specific information and data, which are to be made known to the prospective bidders. Such needs are to be taken care of in Section 4 Part BSpecial Instructions to Bidders as elaborated in the subsequent paragraphs.

3.6

3.7 Section-4 Part B - Special Instructions to Bidders(SIB) 3.7.1 The issues and the areas for which specific data/ details are to be provided for a purchase case can be located easily by going through the clauses of the General Instructions to Bidders (GIB) under Section-4 Part A. Further, for certain aspects of a particular purchase case, necessity may arise to incorporate additional special instructions. These include clauses for eligibility conditions, value of bid security, single-stage or two-stage bidding, opening stages, additional documents to be submitted, evaluation criteria, etc. However, while doing so, care should be taken not to violate any instruction/ directive contained in the procurement policies of BSNL. 3.7.2 The User Section (i.e. the Unit that has raised the requisition e.g. Planning/ Operations/ Marketing/ Administration/ any other unit) shall formulate the Section 4-B (SIB) accordingly. Also, the approval of the competent authority must be taken for the text of the Special Instructions to Bidders and Eligibility Conditions. 3.7.3 The guidelines for preparing section-4-B (SIB) along with corresponding cross-reference with Section-4 A (GIB) provision is available in this section. It is also indicated therein that the provisions in the Special Instructions to Bidders and Eligibility Conditions (SIB) shall supersede the corresponding provisions in the General Instructions to Bidders (GIB) in case of conflict. 3.7.4 Section-4-B (SIB) shall essentially have suitable clauses on the following: 3.7.4.1 Eligible Bidders (refer GIB clause 2): The eligibility conditions shall be mentioned in the Section-4-B clause 1. Broad guidelines for preparing eligibility conditions are mentioned in
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3.7.4.2

3.7.4.3

3.7.5

3.7.5.1

3.7.5.2

3.7.5.3

3.7.5.4

3.7.5.5

3.7.5.6

Chapter 2. Bid Security (refer GIB clause 12): The value of Bid Security (EMD/ EMBG) should be specified in Section-4-B. In case there is more than one package in the tender, each having a separate Bid Security, then the Bid Security for each package should be clearly mentioned. Number of successful bidders/ quantity distribution (refer GIB clause 24): The number of bidders on which order is intended to be placed should be mentioned in Section-4-B (refer Clause 4). In addition to above, Section-4 B may also have clauses on the following items/ topics which may complement/ supersede the corresponding clauses of Section-4 Part A (GIB). The list is not exhaustive and actual clauses have to be framed on case-to-case basis. Clarification of Bid Documents (refer GIB clause 5): Depending on the time allowed for submission of tender, nature of the goods, urgency of requirement etc., the cut-off time for receiving and processing requests from the prospective bidders may be shorter or longer than twenty one days. The principle behind providing such cut-off date is to disallow the bidders in raising irrelevant queries up to the last moment before tender opening thereby delaying the opening of tenders. Documents Comprising the Bid (refer GIB clause 7): If the goods required are highly sophisticated and costly, the purchaser may need some more documents from the bidders along with their tenders. In such a case, requirement of those special documents is also to be incorporated in Section-4-B. Bid Prices (refer GIB clause 9): This is an important area and due care should be taken for formulating this clause depending on the nature of the goods, requirement of incidental service, terms of delivery etc. The best terms of delivery, so far as the purchaser is concerned is CIP destination, wherein the goods are received by the purchaser at the desired place as incorporated in the tender enquiry document. Documents Establishing Bidders Eligibility and Qualifications (refer GIB Clause 10): In order to establish the eligibility and fulfillment of the qualification criteria, some documents in addition to those mentioned in GIB clause 10 might be required. Such documents should be specified in Section-4-B (SIB). These may include experience certificates, authorization from the technology partner, MOU, etc. Sealing and Signing of Bid (refer GIB clause 14) and Opening of Bids by Purchaser (refer GIB clause 19): In case of two bid system, at the first stage, only the technical bids will be
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3.7.5.7

opened and evaluated by the techno-commercial evaluation committee/ authority. Financial bids of only techno-commercially acceptable offers shall be opened at the second stage. Additional factors to be considered for evaluation of tender (refer GIB sub-clause 21.3): Generally, for purchase of standard goods for normal use, no such additional factor may be needed. However, for purchase of highly sophisticated and costly equipment, where the operating cost, maintenance cost, efficiency and productivity of the equipment have significant impact on the overall cost structure and economy for operating the equipment, suitable parameters may be incorporated in the tender document for evaluation of the tenders on equitable basis by considering the monetary impacts for such parameters. Such details should be formulated by qualified and competent personnel and incorporated in the document with the approval of the competent authority. Section-5 Part A - General (Commercial) Conditions of Contract (GCC) This section provides the general rules, regulations and conditions which will guide the resultant contract. This section is to be incorporated unchanged in the tender enquiry document. However, here also, there may be some purchase specific contractual conditions, which are to be suitably incorporated in the tender enquiry documents. Such special conditions are to be included in Section 5-B - Special (Commercial) Conditions of Contract and Section 3-Part BTechnical Specifications as elaborated in following paragraphs. Section-5-B - Special (Commercial) Conditions of Contract (SCC) The areas of the General (Commercial) Conditions of Contract (GCC), in which specific data/ details are to be provided and/or which need modification to take care of special situations for a particular purchase case can easily be located by going through the GCC clauses. However, while doing so, it should be ensured that such modifications remain within the framework of the procurement policies of BSNL. The User Section (i.e. the Unit that has raised the requisition e.g. Planning/Operations/ Marketing/ Administration/ any other unit) shall have to formulate the Section 5-Part B (SCC) accordingly. Also, the approval of the competent authority must be taken while framing such details and before incorporating the same in the Special (Commercial) Conditions of Contract (SCC). The guidelines for preparing Section-5-Part B (SCC) along with corresponding cross-reference with Section-5 Part A (GCC) provision is available in this section. As also indicated therein, the provisions in the Special (Commercial) Conditions of Contract (SCC) will supersede the corresponding provisions in the General (Commercial) Conditions of
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3.8

3.9 3.9.1

3.9.2

3.9.3

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Contract (GCC) in case of conflict. 3.9.4 Section-5-B may have clauses on the following items/ topics which may complement/ supersede the corresponding clauses of Section-5 Part A (GCC).The list is not exhaustive and actual clauses have to be framed on case-to-case basis. 3.9.4.1 Delivery and Documents (refer GCC clause 6): The delivery period will be decided on case-to-case basis considering TSEC, PQT, validation requirement as well as requirements of BSNL in the competitive environment. Generally six months delivery time is envisaged. The delivery period for procurement should be four months for store items where TSEC & PQT are available, six months where TSEC is available but PQT is required. The TSEC and PQT should be completed in maximum period of two months. The delivery period should be eight months in case validation of new technology equipments is involved. Early deliveries may be accepted as per requirement of BSNL on case-to-case basis. In turnkey projects where Installation and Commissioning is to be carried out by the supplier, the time-lines for such activities should also be defined. 3.9.4.2 Incidental Services (refer GCC clause 8): Requirement of such services will depend on the nature of the goods, cost thereof etc. Some of the services will be needed along with the goods and some may be needed separately (like maintenance service). All such aspects are to be kept in view while formulating the requirement of the incidental services. 3.9.4.3 Warranty(refer GCC clause 10): For turnkey projects or high value procurements, the Warranty terms may have to be elaborated keeping in view the actual project requirements e.g. for CDMA and GSM projects, the date of commencement of the Warranty should be clearly specified in the SCC. Suitable Clause may be incorporated in the Special (Commercial) Conditions of Contract, fixing reasonable timeframe to start warranty of the equipment after it has been put to commercial use. This will be treated as date of commissioning for the purpose of release of payment and calculation of liquidated damages. 3.9.4.4 AMC conditions: Section-4 Part A (GCC) does not mention about the Annual Maintenance Contract (AMC) conditions. If there is need for AMC after successful completion of the Warranty period, then, suitable conditions for the same should be specified in Section-5 -C (General
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conditions of AMC). The AMC conditions should indicate the penalties, payment terms, date of commencement, obligations of the supplier, Bank Guaranties to be furnished, etc. Such conditions should be decided on case-to-case basis keeping in view the actual project requirements. The AMC should be only on the cost of equipment supplied(excluding duties and taxes CENVAT-able i.e. net cost to BSNL) and not on the cost of installation & commissioning, etc. A draft of the AMC terms and Conditions should be provided in the Section-5 Part C of the tender enquiry document. Sample AMC conditions are mentioned in Section-5-Part C of the Standard Tender Enquiry Document in Chapter4 of this Manual.

3.9.4.5

Payment Terms (refer GCC clause 11): The terms and mode of payment will depend on the milestones defined here which may again depend upon nature of the goods, terms of delivery, requirement of incidental services, etc. The actual payment conditions for new products or procurements having installation and AMC services may be decided on case-to-case basis and incorporated in Section-2. The documents needed for effecting the payments are also to be specified accordingly. Liquidated Damages (LD) (refer GCC clause 16): The LD defined in Section-5 Part A (GCC) is only for the delay in supply of goods. However, if the contract involves services such as Installation, commissioning, etc., then the penalties applicable when there is delay in executing such services should be mentioned in Section-5 Part B (SCC). Change in make/ model after opening of bids(refer GCC clause 23): In some cases supplier / vendor asks for change in a) model of main equipment which may be required due to : (i) Change in Technology /Technological up gradation. For allowing any change in model of the equipment /item the vendor will be required to establish the suitability of the replacing equipment in regard to the required specifications. (ii) Obsolescence of the technology/ Phase-out of the item in production line by the OEM to bidder. For allowing any change in make/model of the equipment/item due to obsolescence or phasing out of model by OEM, a certificate from OEM in this regard must be submitted by the bidder.
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3.9.4.6

3.9.4.7

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(These are some illustrative situations and are not exhaustive) b) Make/ model of the third party equipment, which is not the main tendered item. Shall be allowed provided that the vendor is able to establish the suitability of the replacing equipment in regard to the required specifications. In such aforesaid situations, case shall be dealt as per following steps A committee, of the level of CET, should be formed for assessing the suitability of the alternate offered item in regard to specifications and resultant financial gain, if any, to BSNL due to this change. These cases should be decided by the tender approving authority on case-to-case basis upon recommendations of the committee so formed as above. Note 1:- In case of aforesaid change in any make/model of the equipment/item, lowest of the rates offered by proposing bidder or any other bidder who quoted for the same make/model in the tender, shall be applicable. Note 2: - In any case the vendor shall be required to supply the item at a rate not more than the quoted rate in the tender. 3.10 Section 9 Price Schedule There are two price schedules, Part-A and PartB for indigenous and imported items respectively, which are self explanatory.

3.11 Pre-bid clarifications and amendments in the tender document 3.11.1 After issue of tender document, a number of queries are sometimes received and pre-bid clarifications are issued by BSNL. Sometimes, the same clause gets clarified in contradictory manner against different clarifications. Sometimes the original clause gets amended but the language of new clause is not clear as the clarification is replied simply as Yes please or agreed or accepted. During evaluation and subsequently while preparing special conditions for issue of APO/ PO, lot of difficulty is faced. In this regard, the clarifications issued should be unambiguous and if any clause is getting modified, then the amended clause should be stated in proper language. 3.11.2 When a large number of clarifications have been issued resulting in number of changes in the tender clauses, then after issue of the last pre-bid clarification, BSNL should issue the updated tender document incorporating all the relevant clarifications and amended clauses just below the original clause. If printing of the amended document may not be possible due to time constraint, then it should be uploaded on BSNL Website/ electronic tender portal. In such cases, the bidders should be asked to submit the clause-by-clause compliance of this amended tender document only and for
BSNL Procurement Manual 2012 Page 24

evaluation the CET Members should rely only on the amended document.

CHAPTER 4 4 STANDARD TENDER ENQUIRY DOCUMENT SECTION-1 BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) nd 2 Floor, Bharat Sanchar Bhawan, HC Mathur Lane, Janpath, New Delhi- 110001 ... From: To, AGM (MMY) ................................................. nd 2 Floor, MMT Section, ................................................. Bharat Sanchar Bhawan, HCM Lane, ................................................. Janpath, New Delhi 110001. ................................................. No. CA/MMT/Item/11-yy/BU name/2011-12/ Dated:

Sub: - Tender documents for Tender No.: CA/BU name/Item/T-xxx/2011-12 issued on Please find enclosed the tender document in respect of above mentioned tender which contains the following. Section No. 1.Part A 1. Part B 2. 3 Part A 3 Part B 3 Part C 4 Part A 4 Part B 4 Part C 5 Part A 5 Part B 5 Part C 6 Detailed NIT Newspaper NIT Tender Information Scope of work Technical Specifications/ Requirements Schedule of Requirements(SOR) General Instructions to Bidders(GIB) Special Instructions to Bidders(SIB) E-tendering Instructions to Bidders (If applicable) General (Commercial) Conditions of Contract (GCC) Special (Commercial) Conditions of Contract (SCC) General Conditions of AMC ( If applicable) Undertaking & declaration
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Item

Page No.

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7 8 9

Proforma (s) Bidders profile & Questionnaire. Bid Form & Price Schedule

If interested, kindly submit your bid offers online (in case of tenders invited through e-tendering portal) or physically (in case of tenders invited through manual tendering) on or before date & time specified in Clause 6 of detailed NIT.

AGM (MMY) Tel.: 011-2371 7844, FAX: 2371 0198 E-Mail: -----------@bsnl.co.in
----------------------------------------------------------------------------------------------------------------------------- --------Regd. Off.: BSNL, Bharat Sanchar Bhawan, Janpath New Delhi -110 001. Web: www.bsnl.co.in

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SECTION 1 Part A Detailed NOTICE INVITING E-TENDER (DNIT) BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) MMT Section, 2nd floor, Bharat Sanchar Bhawan, Janpath, New Delhi - 110 001 .. Sealed Tenders (Digitally in case of e-tendering & Wax/ Tape sealed in case of manual tendering) are invited by ... (Write Designation of Officer approving inviting of tender) e.g. CMD, BSNL for supply of following Items or undertaking following works (as applicable).

S. No.

Name of the Item/ Work Estimated Quantity (Nos.)

Bid Security/Earnest Money Deposit Amount for the tender

Note 1: The quantity /no. / Sites stated above are estimated and BSNL reserves the right to vary the quantity to the extent of -25 % to +25 % of specified quantity at the time of award of the contract i.e. APO without any change in unit price or other terms & conditions. Note 2: 20 % of the Estimated Quantity/requirement in this tender Enquiry is earmarked for procurement from the eligible Micro & Small Enterprises (MSEs). However, in case eligible Micro & Small Enterprises (MSEs) bidder(s) are not available then this quantity would be de-reserved & procured from participating bidders. (Note-2 shall be deleted in case the tender does not have provision for reservations for MSE units) 1.1 There is a separate bid form for each section/ Zone/ Package in the tender documents, which should be filled if the bidder wishes to participate in that section/ zone/ Package (if applicable). The evaluation of the tender as well as allotment of the work will be done section/ zone/ Package wise. Purchase of Tender Document: Tender document can be obtained by downloading it from the website ... (write address of concerned website) e.g. www.bsnl.co.in following Link for E-tenders by BSNL in case of tenders invited through e-tendering process.
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2.

BSNL Procurement Manual 2012

Tenders invited through manual bidding process shall be available at ... (write address of concerned website) e.g. www.bsnl.co.in. 2.1 The bidders downloading the tender document are required to submit the tender fee amount through DD/ Bankers cheque along with their tender bid failing which the tender bid shall be left archived unopened/ rejected. The DD/ bankers cheque shall be drawn from any Nationalized/ Scheduled Bank in favour of .. (state designation of concerned Accounts Officer) e.g. AO(Cash), BSNL, C.O. N. Delhi and payable at ... (state the name of the concerned payable City/ Station) e.g. New Delhi. 2.2 The tender documents shall be issued free of cost to MSE bidders on production of requisite proof in respect of valid certification from MSME for the tendered item.

3.0 Availability of Tender Document: The tender document shall be available for downloading from ./ ../ 20. (write date in dd/mm/yyyy) onwards up to ./ ../ 20. (write date in dd/mm/yyyy) from 11-00 Hrs to 17-00 Hrs on all working days of this office. 3.1 In case of tenders invited through e-tendering process, physical copy of the tender document would not be available for sale. 3.2 Tenders invited through manual bidding process shall be available for sale and can be had from ... (state designation of the officer with complete postal address) e.g. Deputy Manger (MMT), 2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi-110001 against payment of Tender fee of Rs../- which will be payable in the form and in the name of person stated in clause 2.1 above.

Note 3: The Tender document shall not be available for download on its submission / closing date. 4. Eligibility Criteria: - The bidder should have a) <ELIGIBILITY CONDITIONS TO BE MENTIONED HERE> . b) Valid PAN No. c) Valid Sales/ Service Tax Registration Certificate No or exemption certificate No.

4.1 The bidders shall submit necessary documentary proof showing that they meet the eligibility criteria along with their tender bid. All documents submitted will also be self attested by the bidder. 5. Bid Security/EMD:
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BSNL Procurement Manual 2012

5.1 The bidder shall furnish the bid EMD in one of the following ways:(a) Demand Draft/ Bankers cheque drawn in favour of . (State Designation of concerned Accounts Officer) e.g. AO (Cash), BSNL, C.O. N. Delhi and payable at . (State the name of the concerned payable City) e.g. New Delhi either separately for each package or total for all no. of packages participated. Bank Guarantee from a scheduled bank drawn in favour of. (State Designation of concerned officer ) e.g. DGM (MMT), Bharat Sanchar Nigam Limited, Corporate Office, New Delhi which should be valid for days (i.e. one month above the offer validity period subject to maximum of 210 days) from the tender opening date, either separately for each package or total for all no. of packages participated.

b)

5.2 The MSE units shall be exempted from submission of Bid Security deposit on production of requisite proof in respect of valid certification from MSME for the tendered item. Date & Time of Submission of Tender bids: on or before . & . (state time & date of receipt of tender) e.g. hh: mm of dd/mm/20 yy. Note 4: In case the date of submission (opening) of bid is declared to be a holiday, the date of submission (opening) of bid will get shifted automatically to next working day at the same scheduled time. Any change in bid opening date due to any other unavoidable reason will be intimated to all the bidders separately. 6. 7. Opening of Tender Bids: After 00:30 Hours of this tender closing time & on same date. Place of opening of Tender bids: In case of tenders invited through e-tendering process, the tenders shall be opened through Public Online Tender Opening Event (POTOE). BSNLs Tender Opening Officers as well as authorized representatives of bidders can attend the Public Online Tender Opening Event (TOE) from the comfort of their offices. Kindly refer clause 8 of Section-4 Part C of Tender document for further instructions. In addition & in case of tenders invited through manual bidding process, authorized representatives of bidders (i.e. vendor organization) can attend the TOE at the (state address of the tender opening place) e.g. Meeting Room, 2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi, where BSNLs Tender Opening Officers would be conducting Public Online or manual Tender
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8. 8.1

8.2

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Opening Event (TOE). 9. 10. 11. Tender bids received after due time & date will not be accepted. Incomplete, ambiguous, Conditional, unsealed tender bids are liable to be rejected. (Write the Designation of Officer approving inviting of tender) e.g. CMD, BSNL reserves the right to accept or reject any or all tender bids without assigning any reason. He is not bound to accept the lowest tender. The bidder shall furnish a declaration in his tender bid that no addition / deletion / corrections have been made in the downloaded tender document being submitted and it is identical to the tender document appearing on the website.

12.

12.1 In case of any correction/ addition/ alteration/ omission in the tender document, the tender bid shall be treated as non responsive and shall be rejected summarily. Note 5: All documents submitted in the bid offer should be preferably in English. In case the certificate viz. experience, registration etc. is issued in any other language other than English, the bidder shall attach an English translation of the same duly attested by the bidder & the translator to be true copy in addition to the relevant certificate. Note 6: All computer generated documents should be duly signed/ attested by the bidder/ vendor organization.

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SECTION 1 (Part B)

NEWS PAPER N.I.T. (NNIT)

BHARAT SANCHAR NIGAM LIMITED O/o Sr. GM (MM), Bharat Sanchar Bhawan, Janpath, New Delhi-110001

NOTICE INVITING TENDER Tender No. MM/./T./2012-13 dated .. Sealed tenders are invited by. (Write Designation of Officer approving inviting of tender) e.g. CMD, BSNL from the prospective bidders for the following work: Name of the work Quantity (With Unit) Estimated cost in Rs.

Last date of receipt of tender is .............. up to Hrs. For further detailed information, kindly visit our website www.bsnl.co.in and follow Link for E-Tenders by BSNL.

DGM (MM) Tel. No. ,FAX No.

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Note :- (Not to be published) 1. Complete Postal Address of the office inviting tender should be there in the NNIT. 2. 3. 4. 5. 6. 7. Phrases like on behalf of BSNL etc. should be avoided. The font size of the NNIT, to be published, should be 8 points. The width of the NNIT in the newspaper should be Two Column. Telephone and Fax no. with STD code must be there in the NNIT. No advertisement of Excel & Cell one service need be included in the NNIT which unnecessarily inflates the publishing cost. No. of insertions in the newspaper will depend on value of tender tabulated below:

S. No. 1. 2.

Value of tender Less than Rs.1 Crore Rs.1 Crore and above

No. of insertion 1 Regional/ Hindi 1 Regional/ Hindi & 1 English

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SECTION- 2 Tender Information

Note 1:-The Tender Information below is for reference only. Precise Tender Information need be framed for each tender as per type of tender. 1. Type of tender- : a) No. of Bid Submission Stages for tender: Single /Two Stage. (Please See Note-2). b) No. of Envelopes for submission of Bids: Single/ Two Nos. (Opening stages) (Please See Note-3). c) E-reverse auction (In case of tenders : Yes/ No invited through e-tendering only)

Note 2: Two stage submission of bids is desirable only in cases where there is doubt on the scope of Work/ Specifications and requirements. In such tender, first stage will be used to invite bids to have details/ clarifications on scope of Work/ Specifications and requirements to firm up the same following which techno-commercial bid along with financial bid shall be invited in 2 nd stage. Note 3:- In case of 1(b) above, the bidder shall submit Techno-commercial & Financial bid simultaneously Note 4:- The bids will be evaluated techno-commercially first and thereafter financial bids of techno-commercially compliant bidders only shall be opened. 2. Bid Validity Period / Validity of bid Offer :.days (Specify time in days) from the tender opening date.

3.

In case of tenders invited under two envelopes system, the first envelope will be named as techno-commercial& will contain documents of bidders satisfying the eligibility / Technical & commercial conditions and 2nd envelope will be named as financial envelope containing financial quote. These envelopes shall contain one set of the following documents :a) Techno-commercial envelope shall contain :i) EMD ii) Cost of the tender documents i.e. tender fee. iii) Certificate(s) showing fulfillment of the eligibility criteria(s) stated in Clause 4 of the DNIT iv) Power of Attorney & authorization for executing the power of Attorney in accordance with clause 14.4 of Section 4 Part A
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Integrity Pact (if applicable) Clause by clause compliance as per clause 11.2 of Section-4A Bidders Profile & Questionnaire duly filled & signed. Non-Relation Certificate duly filled & signed. Undertaking & declaration duly filled & signed Documents stated in clause 10 of Section-4 Part A. Tender documents duly signed at the end of each section for having read it & accepted it (only in case of Manual bidding Process). xii) Tender/ Bid form- Section 9 Part A xiii) Electronic Form- Technical (in case of tenders invited through e-tendering process) Note 5: In case of e-tendering, in case the bidder is unable to upload any of the documents listed above, he may submit the same physically. However EMD & cost of tender document will be submitted in original in physical form. b) Financial envelope shall contain: i) Electronic Form- financial along with Price Schedule (Section 9 PartB (I & II) with all relevant bid annexure (in case of tenders invited through e-tendering process). ii) Bid form- Price Schedule (Section 9 Part B (I &II ) duly filled & signed (in case of tenders invited through manual bidding process). Note 6:- In case of e-tendering, the following documents are required to be submitted offline (i.e. offline submissions) to (state the address of the concerned officer) e.g. DM (MMT), BSNL, C.O. 2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi-110001 on or before the date & time of submission of bids in a sealed envelope. The envelope shall bear the tender number, name of work and the phrase: Do Not Open Before (due date & time of opening of tender). i) EMD Bid security (original copy) ii) DD/ Bankers cheque of Tender fee iii) Power of Attorney in accordance with clause 14.4 of section 4 Part A and authorization for executing the power of Attorney. iv) Integrity Pact (if applicable)
4.

v) vi) vii) viii) ix) x) xi)

5. 6.

In case of tenders invited under Single Envelope system, the envelope will contain both techno-commercial & financial bid i.e. documents 3 (a) (i) to (xi) & 3 (b) (i) to (ii). Payment terms Delivery Schedule

Note 7:- First two months are for lead period and evenly distributed supplies are expected in remaining four months. 7. Consignee
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SECTION- 3 Part A

SCOPE OF WORK

A.

General :

B.

Scope of Work:

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SECTION- 3 Part B

TECHNICAL SPECIFICATIONS/ Requirements A. General :

B.

Technical specifications: The equipment shall conform to the Technical specifications as mentioned below :

Note 1: Clauses for describing the technical requirements, model technical Specifications may be added as per requirement.

Note 2: After the issue of DNIT, Specifications should not be changed.

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SECTION-3 Part C SCHEDULE OF REQUIREMENTS (SOR)

S.NO.

GOODS/ SERVICES

QUANTITY

Unit of Measurement (Km/kg/No.etc.)

Note: Bidder shall furnish the detailed Bill of Material (BOM) for each SOR item mentioned above. The detailed Bill of Material should clearly mention all the components including quantities, constituting the SOR item. The priced Bill of Material should be submitted in the envelope containing the price bid and unpriced Bill of Material should be submitted in the envelope containing the techno-commercial part. There should not be any difference in the items and quantities in the priced and the unpriced BOMs.

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SECTION-4 Part A GENERAL INSTRUCTIONS TO BIDDERS (GIB)

1.0

DEFINITIONS (a) (b) (c) (d) "The Purchaser" means the Bharat Sanchar Nigam Ltd. (BSNL), New Delhi "The Bidder" means the individual or firm who participates in this tender and submits its bid. "The Supplier" or The Vendor means the individual or firm supplying the goods under the contract. "The Goods" means all the equipment, machinery, and/or other materials which the Supplier is required to supply to the Purchaser under the contract. "The Advance Purchase Order" or Letter of Intent means the intention of Purchaser to place the Purchase Order on the bidder. "The Purchase Order" means the order placed by the Purchaser on the Supplier signed by the Purchaser including all attachments and appendices thereto and all documents incorporated by reference therein. The purchase order shall be deemed as "Contract" appearing in the document. "The Contract Price" means the price payable to the Supplier under the purchase order for the full and proper performance of its contractual obligations. "Validation" is a process of testing the equipment as per the Generic Requirements in the specifications for use in BSNL network. Validation is carried out in simulated field environment and includes stability, reliability and environmental tests. "Telecom Service Provider" means any Telecom operator in India, who is licensed by the Department of Telecommunications (DOT), Government of India to provide telecom services to the general public or to the other DOT licensed Telecom operators. "Telecom Service Provider" also refers to any Telecom operator in other countries providing telecom services to general public of that country or to other telecom operators of the same country. Successful Bidder(s) means the bidder(s) to whom work in this tender is awarded.

(e) (f)

(g)

(h)

(i)

(j)

2.0 2.1

ELIGIBILITY CONDITIONS: Kindly refer to clause 4 of Section 1 i.e. Detailed NIT.


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3.0 3.1

COST OF BIDDING The bidder shall bear all costs associated with the preparation and submission of the bid. The Purchaser will, in no case, be responsible or liable for these costs, regardless of the conduct or outcome of the bidding process. DOCUMENTS REQUIRED The goods required to be supplied; bidding procedures and contract terms and conditions are prescribed in the Bid Documents. The contents of the Bid documents are specified in the covering letter. The Bidder is expected to examine all instructions, forms, terms and specifications in the Bid Documents and clarifications/ amendments/ addenda, if any. Failure to furnish all information required as per the Bid Documents or submission of the bids not substantially responsive to the Bid Documents in every respect will be at the bidder's risk and may result in rejection of the bid. CLARIFICATION OF BID DOCUMENTS A prospective bidder, requiring any clarification on the Bid Documents shall notify the Purchaser in writing by FAX or by Email of the Purchaser as indicated in the invitation of Bid. The Purchaser shall respond in writing to any request for the clarification of the Bid Documents, which it receives 21 days prior to the date of opening of the Tenders. Copies of the query (without identifying the source) and clarifications by the Purchaser shall be sent to all the prospective bidders who have received the bid documents. Any clarification issued by BSNL in response to query raised by prospective bidders shall form an integral part of bid documents and shall amount to an amendment of the relevant clauses of the bid documents. AMENDMENT OF BID DOCUMENTS The Purchaser may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective bidder, may modify bid documents by amendments prior to the date of submission of Bids with due notification to prospective bidders. The amendments shall be notified in writing by FAX or Email or by Addendum through e-tendering portal ( for tenders invited through e-tendering process)to all prospective bidders on the address intimated at the time of purchase of the bid document from the purchaser and these amendments will be binding on them. In order to afford prospective bidders a reasonable time to take the
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4.0 4.1

4.2

5.0 5.1.

5.2

6.0 6.1

6.2

6.3

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7.0

amendment into account in preparing their bids, the purchaser may, at its discretion, extend the deadline for the submission of bids suitably. DOCUMENTS COMPRISING THE BID The bid prepared by the bidder shall ensure availability of the following components: (a) Documentary evidence establishing that the bidder is eligible to bid and is qualified to perform the contract if its bid is accepted in accordance with the clause 2 & 10. (b) Bid Security furnished in accordance with clause 12. (c) A Clause by Clause compliance as per clause 11.2 (c) (d) A Bid form and price schedule completed in accordance with clause 8 & 9.

8.0 8.1

BID FORM The bidder shall complete the bid form and appropriate Price Schedule furnished in the Bid Documents, indicating the goods to be supplied, brief description of the goods, quantity and prices as per section- 9. BID PRICES The bidder shall give the total composite price inclusive of all Levies & Taxes i.e. Sales Tax & Excise, packing, forwarding, freight and insurance etc. but excluding Octroi/ Entry Tax which will be paid extra at actual, wherever applicable. The basic unit price and all other components of the price need to be individually indicated up to two decimal points only against the goods it proposes to supply under the contract as per the price schedule given in Section 9 Part B(I&II). Prices of incidental services should also be quoted. The offer shall be firm in Indian Rupees. No Foreign exchange will be made available by the purchaser. Prices indicated in the Price Schedule shall be entered in the following manner: (a) The Basic Unit price (Ex-Factory Price) of the goods, Excise duty, Custom duty, Sales Tax, Freight, Forwarding, Packing, Insurance and any other Levies/ Charges already paid or payable by the supplier shall be quoted separately item wise. (b) The supplier shall quote as per price schedule given in Section 9 part B for all the items given in schedule of requirement at Section 3 part C. A bid submitted with an adjustable price quotation will be treated as non-responsive and rejected. The prices quoted by the bidder shall be in sufficient detail to enable the Purchaser to arrive at the price of equipment/ system offered. "DISCOUNT if any, offered by the bidders shall not be considered unless specifically indicated in the price schedule. Bidders desiring to offer discount shall therefore modify their offers suitably while quoting and shall quote
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9.0 9.1

9.2

9.3 9.4 9.5

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9.6

clearly net price taking all such factors like Discount, free supply, etc. into account". The price approved by BSNL for procurement will be inclusive of levies and taxes, packing, forwarding, freight and insurance as mentioned in clause 9.1 subject to other terms and condition as stipulated in clause 22.2 of Section 4 Part A. and clause 11 of Sec-5 Part A of Bid-document. Unloading charges at the consignee end shall be borne by the supplier and no separate charges shall be paid for transportation to individual sites for installation. The freight by sea for transportation of equipment/Stores from the nearest port in the main land to Andaman & Nicobar Islands will be reimbursed to the supplier at the concessional rates levied by Ministry of Water and Surface Transport on production of proof.

9.7

10.0

DOCUMENTS ESTABLISHINGBIDDER'S ELIGIBILITY AND QUALIFICATION 10.1. The bidder shall furnish, as part of the bid documents establishing the bidder's eligibility, the following documents or whichever is required as per terms and conditions of Bid Documents. a) Valid MSE Certificate, if applicable. In case the ownership of such MSE Entrepreneurs happens to be from SC/ST category, proof in this regard also need to be submitted. b) Type Approval Certificate given by Telecom Engineering Centre (TEC)/ TSEC issued by the Quality Assurance Circle of BSNL or proof of having applied for TSEC (Copy of Form QF 103 be attached). c) Inspection Certificate issued by BSNL (QA) for execution of educational/ Commercial Order. d) Additional documents to establish the eligibility and qualification of bidder as specified in Section-I and Section-4 Part B. e) Power of Attorney as per clause 14.4 (a) and (d) and authorization for executing the power of Attorney as per clause 14.4 (b) or (c). f) Documentary proof of applicable rate of ED/ CD/ Sales Tax/ VAT /Service Tax. g) Undertaking duly signed by front bidder and its technology/ consortium partner stating that both of them shall be liable for due performance of the contract jointly and severally as per clause 12.7(d). h) Certificates from all Directors of the bidder stating that none of their near relatives are working in BSNL in accordance with clause 34. i) Certificate of incorporation. j) Article or Memorandum of Association or partnership deed or proprietorship deed as the case may be. k) List of all Directors including their name(s), Director Identification Number(s) (DIN) and address (es) along with contact telephone
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numbers of office and residence. l) Registration certificate from State Director of Industries or from Secretariat for Industrial Assistance (SIA), Ministry of Industries, Government of India.

m) Approval from Reserve Bank of India/ SIA in case of foreign collaboration. Note 1: Documents at S. No 10.1(g), (k), (l), (m) are applicable in case of tenders with estimated cost more than Rs 1 Crore. 10 .2 Documentary evidence for financial and technical capability a) The bidder shall furnish audited Annual Report and /or a certificate from its bankers to assess its solvency/financial capability. b) The bidder shall furnish documentary evidence about technical and production capability necessary to perform the contract. 10.3 In order to enable the Purchaser to assess the proven-ness of the system offered, the bidder shall provide documentary evidence regarding the system being offered by him. 10.4 The offered product has to be type approved. For this purpose, the supplier shall submit a sample type for evaluation. The sample would be evaluated for its ability to meet the technical specifications, manufacturability, reliability, testability, ease of installation, maintainability etc. Necessary documents to substantiate these attributes will have to be submitted at the time of application for approval by the supplier for obtaining type approval. Or In case goods offered have already been type approved/ validated by the Purchaser, documentary evidence to this effect shall be submitted by the bidder. 10. 5 A signed undertaking from Authorized Signatory of the bidder that shall certify that all components/ parts/ assembly/ software used in the Desktops and Servers like Hard disk, Monitors, Memory etc. shall be original, new components/ parts/ assembly/ software and that no refurbished/ duplicate/ second hand components/ parts/ assembly/ software are being used or shall be used. 10.6. For supply of any software i.e. operating system or any applications software the bidder should submit a Certificate Of Authenticity (COA), signed by Authorized Signatory stating that all Software supplied are authentic and legal copy is/ are being supplied. 10.7 Documentary evidence/ Declaration to the effect that the type of software to be utilized in the system/ equipment i.e. Packaged/ Canned OR Customized shall be furnished by the bidder. In case of Packaged/ Canned, the portion of value which represents consideration paid or payable for transfer of right to use such goods subject to provisions laid down in Central Excise/Custom
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Notifications.

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11.0 11.1

11.2

11.3

DOCUMENTS ESTABLISHING GOODS CONFORMITY TO BID DOCUMENTS Pursuant to clause 7, the bidder shall furnish, as part of its bid, documents establishing the conformity of its bid to the Bid Documents of all goods and services which he proposes to supply under the contract. The documentary evidences of the "goods and services" conformity to the Bid Documents may be, in the form of literature, drawings, data etc. and the bidder shall furnish: (a) a detailed description of goods with essential technical and performance characteristics; (b) a list, giving full particulars including available sources and current prices of all spare parts, special tools, etc., necessary for the proper and continuous functioning of the goods for a period of three years following commencement of use of the goods by the purchaser, and (c) a clause-by-clause compliance on the purchaser's Technical Specifications and Commercial Conditions demonstrating substantial responsiveness to the Technical Specifications and Commercial Conditions. In case of deviations, a statement of the deviations and exception to the provision of the Technical Specifications and Commercial Conditions shall be given by the bidder. A bid without clause-by-clause compliance of the Scope of Work, Technical Specifications, SOR (Section-3 Part A, B & C), General (Commercial) Conditions & Special (Commercial) Conditions, General Conditions of AMC (Section- 5 Part A, B & C) shall not be considered. For the purpose of compliance to be furnished pursuant to the clause11.2(c) above, the bidder shall note that the standards for the workmanship, material and equipment and reference to the brand names or catalogue number, designated by the Purchaser in its Technical specifications are intended to be descriptive only and not restrictive. BID SECURITY / EMD The bidder shall furnish, as part of its bid, a bid security as mentioned in Section-1(DNIT). The MSE bidders are exempted from payment of bid security: a) A proof regarding valid registration with body specified by Ministry of Micro, Small & Medium Enterprise for the tendered items will have to be attached alongwith the bid. b) The enlistment certificate issued by MSME should be valid on the date of opening of tender. c) MSE unit is required to submit its monthly delivery schedule. d) If a vender registered with body specified by Ministry of Micro, Small &
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12.0 12.1 12.2

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12.3

12.4.

12.5

12.6

12.7

Medium Enterprise claiming concessional benefits is awarded work by BSNL and subsequently fails to obey any of the contractual obligations, he will be debarred from any further work/ contract by BSNL for one year from the date of issue of such order. The bid security is required to protect the purchaser against the risk of bidder's conduct, which would warrant the forfeiture of bid security pursuant to Para 12.7. A bid not secured in accordance with Para 12.1 & 12.2 shall be rejected by the Purchaser being non-responsive at the bid opening stage and archived unopened on e-tender portal for e-tenders and returned to the bidder unopened(for manual bidding process) The bid security of the unsuccessful bidder will be discharged/ returned as promptly as possible and within 30 days of finalization of the tender or expiry of the period of the bid validity period prescribed by the purchaser pursuant to clause 13. The successful bidder's bid security will be discharged upon the bidder's acceptance of the advance purchase order satisfactorily in accordance with clause 27 and furnishing the performance security, except in case of L-1 bidder, whose EMBG/EMD shall be released only after the finalization of ordering of complete tendered quantity in pursuance to clause no. 24.4 & 27.3 of this section.. The bid security may be forfeited: a) If the bidder withdraws or amends its bid or impairs or derogates from the bid in any respect during the period of bid validity specified by the bidder in the bid form or extended subsequently; or b) In the case of successful bidder, if the bidder fails to sign the contract in accordance with clause 28; (c) The front bidder shall submit an irrevocable undertaking in non-judicial stamp paper of appropriate value duly signed by it and its technology/ consortium partner stating that both of them i.e. the front bidder and its technology/ consortium partner shall be liable for due performance of the contract jointly and severally, failing which both of them shall be liable to be barred from participating in future tenders/EOIs/ RFPs of BSNL for a period of two years.

13.0 PERIOD OF VALIDITY OF BIDS 13 .1 Bid shall remain valid for period specified in clause 2 of Tender Information. A bid valid for a shorter period shall be rejected by the purchaser being non-responsive. 13.2 In exceptional circumstances, the purchaser may request the consent of the bidder for an extension to the period of bid validity. The request and the response thereto shall be made in writing. The bid security provided under clause 12 shall also be suitably extended. The bidder may refuse the request without forfeiting its bid security. A bidder accepting the request and granting
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extension will not be permitted to modify its bid. 14.0 FORMAT AND SIGNING OF BID 14.1. The bidder shall submit his bid, online (in case of e-tendering) & through sealed envelopes physically (in case of tenders with manual bidding process), complying all eligibility conditions, other terms and conditions of tender document to be read along with the clarifications and amendments issued in this respect. All the documents must be authenticated, using Digital Signature (in case of e-tendering) & by hand signatures (for manual bidding process), by the authorized person. The letter of authorization shall be indicated by written power-of-attorney accompanying the bid. Note:-The Purchaser may ask the bidder(s) to supply, besides original bid, additional copy of bids as required by him. 14.2. The bid shall contain no interlineations, erasures or overwriting except as necessary to correct errors made by the bidder in which case such corrections shall be signed by the person or persons signing the bid. All pages of the original bid, except for un-amended printed literatures, shall be digitally signed by the person or persons signing the bid. 14.3 Power of Attorney (a) The power of Attorney should be submitted and executed on the non-judicial stamp paper of appropriate value as prevailing in the concerned states(s) and the same be attested by a Notary public or registered before Sub-registrar of the state(s) concerned. (b) The power of Attorney be executed by a person who has been authorized by the Board of Directors of the bidder in this regard, on behalf of the Company/ institution/ Body corporate. (c) In case of the bidder being a firm, the said Power of Attorney should be executed by all the partner(s) in favour of the said Attorney. (d) Attestation of the specimen signatures of such authorized signatory of the bid by the Companys/ firms bankers shall be furnished. Name, designation, Phone number, mobile number, email address and postal address of the authorized signatory shall be provided. 15.0 SEALING AND MARKING OF BIDS 15.1 The bid should be submitted as per Clause 3 of tender information. 15.1.1 The bids may be called under a) S ingle stage bidding & Single envelope system OR b) Single Stage Bidding & Two Envelope System The details of sealing & marking of bids in each case is given below: 15.1.2 In Single stage bidding & single envelope system, the bidder shall submit all the documents specified for Techno-commercial bid & Financial bid in a single envelope. The cover shall contain the Original Copy of the bids
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subject to clause 14.2. The envelope should be sealed by the personal seal of the bidder. 15.1.3 In Single stage bidding & two envelopes system, the bidder shall submit his bid in two envelopes; The First envelope will be named as Techno-commercial bid. This envelope will contain documents of bidders satisfying the eligibility / Technical & commercial conditions as per clause 2 & 10 with Bid Security as per Clause 12. Second envelope will be named as Financial bid containing Price Schedules as per Section 9 Part B(I&II) . The cover of first envelope shall contain the Original Copy of the Techno-commercial bid, subject to clause 14.2, duly marked ' TECHNO-COMMERCIAL BID '. The cover of second envelope shall contain the Original Copy of the financial bid, subject to clause 14.2, duly marked ' FINANCIAL BID '. Both the envelopes should be sealed separately and further kept in a single main envelope under the personal seal of the bidder. 15.2 a) The envelopes shall be addressed to the purchaser inviting the tender. i) In case of tenders invited by MMT section of BSNL CO, the Purchaser Address shall be: DGM (MMT), Bharat Sanchar Nigam Limited (Corporate Office), 2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi-110001. ii) In case of tenders invited from other section of BSNL CO./ Circles/ SSA of BSNL, the Purchaser Address shall be specified by the purchaser inviting the tender of concerned Circle/ SSA. b) T he envelope shall bear the name of the tender, the tender number and the words 'DO NOT OPEN BEFORE' (due date & time). c) The inner and outer envelopes shall indicate the name and complete postal address of the bidder to enable the purchaser to return the bid unopened in case it is declared to be received 'late'. d) Tender should be deposited in the tender box provided by tendering authority or sent by registered post or delivered in person on above mentioned address (address is given in Clause 15.2 (a) above). The responsibility for ensuring that the tenders are delivered in time would vest with the bidder. e) Bids delivered in person on the day of tender opening shall be delivered upto specified time & date as stated in NIT to Section Officer (MMT) [in case of tenders invited by MMT section of BSNL C.O.] / concerned officer to be specified by tendering authority [In case of tenders invited from other units of BSNL CO./ Circles/ SSA of BSNL] at the venue (address is given in clause 15.2 (a) above). The purchaser shall not be responsible if the bids are delivered elsewhere. f) Venue of Tender Opening: (i) I
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n case of Tenders invited by MMT section of BSNL, C.O., tenders will be opened in Meeting Room, 2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi-110001 at specified time & date as stated in NIT. I n case of tenders invited from other units of BSNL CO./ Circles / SSA of BSNL, the details of Venue shall be specified by the purchaser inviting the tender of concerned Circle/ SSA . If due to administrative reasons, the venue of Bid opening is changed, it will be displayed prominently on Meeting Room, 2 nd Floor, Bharat Sanchar Bhawan and notice board on 2nd Floor, Bharat Sanchar Bhawan)[ in case of tenders invited by MMT section of BSNL C.O.] & at a place notified by other section of BSNL CO./ Circle/SSA[In case of tenders invited from other sections of BSNL CO./ Circles/ SSA of BSNL]. 15.3 If both the envelopes are not sealed and marked as required at para 15.1 and 15.2, the bid shall be rejected. 16. 0 SUBMISSION OF BIDS 16.1. Bids must be submitted by the bidders on or before the specified date & time indicated in Clause 6 of Section-I i.e. DNIT. 16.2 The Purchaser may, at its discretion, extend this deadline for the submission of bids by amending the Bid Documents in accordance with clause 6 in which case all rights and obligations of the purchaser and bidders previously subject to the deadline will thereafter be subjected to the extended deadline. 16.3 The bidder shall submit its bid offer against a set of bid documents purchased by him for all or some of the systems/ equipment as per requirement of the Bid Documents. He may include alternate offer, if permissible as per the bid. However, not more than one independent and complete offer shall be permitted from the bidder. 17.0 17.1 LATE BIDS No bid shall be accepted either online by E-Tender Portal or physically in case of manual bidding process after the specified deadline for submission of bids prescribed by the purchaser. (ii)

18 MODIFICATION AND WITHDRAWAL OF BIDS 18 .1 The bidder may modify, revise or withdraw his bid after submission prior to deadline prescribed for submission of bid. 18.2 The bidders modification, revision or withdrawal shall have to be online and digitally authenticated (in case of e-tendering) & physically (in case of manual bidding process) as per clause 15. 18.3 Subject to clause 20, no bid shall be modified subsequent to the deadline for
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submission of bids.

19.0 19.1

19.2 19.3

OPENING OF BIDS BY PURCHASER The purchaser shall open bids online (in case of e-Tenders) or physically (in case of manual bidding process) in the presence of the authorized representatives of bidders online (in case of e-Tenders) or physically present (in case of e-Tenders as well as manual bidding process) who chose to attend, at time & date specified in Clause 7 of D NIT(Section-1) on due date. The bidder's representatives, who are present, shall sign in an attendance register. Authority letter to this effect shall be submitted by the authorized representatives of bidders before they are allowed to participate in bid opening (A Format is given in enclosed in Section-7 D). A maximum of two representatives of any bidder shall be authorized and permitted to attend the bid opening. Name of envelopes to be opened & information to be read out by Bid Opening Committee (i) In Single stage bidding & single envelope system; techno-commercial bid & financial Bid will be opened on the date of tender opening given in NIT. (ii) In Single stage bidding & two envelopes system; the bids will be opened in 2 stages i.e. the techno-commercial bid shall be opened on the date of tender opening given in NIT. The financial bid will not be opened on the Date of opening of techno commercial bids in this case & sealed financial bids will be handed over to DGM (MMT), BSNL, CO./ Other section in BSNL, CO./ MM cell in circle/ SSA offices (as applicable) for retention. Thereafter the CET will evaluate Techno-commercial bids & the report of CET will be approved by competent authority. The financial bids of those bidders who are approved to be techno-commercially compliant by the competent authority, will be opened by TOC in front of techno commercially eligible bidders/ authorized representatives by sending them a suitable notice. (iii) The following information should be read out at the time of Techno-commercial bid opening:a) Name of the Bidder b) Name of the item c) EMD amount & validity and acceptability d) Information in respect of eligibility of the bidder. e) Details of bid modification/ withdrawal, if applicable. (iv) The following information should be read out at the time of Financial bid opening:Page 49

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a) b) c) d) e) 19.4

Name of the Bidder Name of the item Quantities/prices quoted in the bid Discount, if offered Taxes & levies

The date fixed for opening of bids, if subsequently declared as holiday by the BSNL, the revised date of schedule will be notified. However, in absence of such notification, the bids will be opened on next working day, time and venue remaining unaltered.

20.0 CLARIFICATION OF BIDS 20.1 To assist in the examination, evaluation and comparison of bids, the purchaser may, at its discretion ask the bidder for the clarification of its bid. The request for the clarification and the response shall be in writing. However, no post bid clarification at the initiative of the bidder shall be entertained. 20.2 If any of the documents, required to be submitted along with the technical bid is found wanting, the offer is liable to be rejected at that stage. However the purchaser at its discretion may call for any clarification regarding the bid document within a stipulated time period. In case of non compliance to such queries, the bid will be out rightly rejected without entertaining further correspondence in this regard. 21.0 PRELIMINARY EVALUATION 21.1 Purchaser shall evaluate the bids to determine whether they are complete, whether any computational errors have been made, whether required sureties have been furnished, whether the documents have been properly signed and whether the bids are generally in order. 21.2 Arithmetical errors shall be rectified on the following basis. Based on the quoted percentage of duties and taxes, Freight etc. the amounts quoted thereof shall be worked out and rounded off to 2 decimal points. In case the unit price quoted in column 12 does not tally with its breakup quoted in col. 4, 6, 8, 10 & 11, the same shall be corrected by summing up the breakups. If there is a discrepancy between the unit price and total price that is obtained by multiplying the unit price and quantity, the unit price shall prevail and the total price shall be corrected by the purchaser. 21.3 If there is a discrepancy between words and figures, the amount in words shall prevail. If the supplier does not accept the correction of the errors, its bid shall be rejected. 21.4 Prior to the detailed evaluation pursuant to clause 22, the Purchaser will determine the substantial responsiveness of each bid to the Bid Document. For purposes of these clauses, a substantially responsive bid is one which confirms to all the terms and conditions of the Bid Documents without material deviations. The purchaser's determination of bid's responsiveness
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shall be based on the contents of the bid itself without recourse to extrinsic evidence.

21.5

21.6

A bid, determined as substantially non-responsive will be rejected by the purchaser and shall not subsequent to the bid opening be made responsive by the bidder by correction of the non-conformity. The Purchaser may waive any minor infirmity or non-conformity or irregularity in a bid which doesn't constitute a material deviation, provided such waiver doesn't prejudice or affect the relative ranking of any bidder.

EVALUATION AND COMPARISON OF SUBSTANTIALLY RESPONSIVE BIDS 22.1 The Purchaser shall evaluate in detail and compare the bids previously determined to be substantially responsive pursuant to clause 21. 22.2 The evaluation and comparison of responsive bids shall be done on the basis of Net cost to BSNL on the prices of the goods offered inclusive of Duties and taxes (but excluding CENVAT-able Duties & Taxes), Sales Tax, Packing, Forwarding, Freight and Insurance charges etc. as arrived in Col. 17 of the price schedule in the Section-.9 Part B (I&II)of the Bid-document after arithmetical correction in the manner laid down in clause 21.2 above. As stipulated in clause 9.1, Octroi/ Entry Taxes are not to be included in the composite price and hence the same will not be considered for the purpose of evaluation and comparison of responsive bids. However, Octroi/ Entry Taxes will be paid extra. as per actual wherever applicable on production of proof of payment/relevant invoices/documents. (a) (b) Duties & Taxes for which the firm has to furnish Cenvatable Challans/ Invoices will be indicated separately in the PO/APO. Vendors should furnish the correct E.D./Customs tariff Head in the price Schedule. If the credit for the Duties and Taxes under CENVAT Credit Rules, 2004 is found to be not admissible at any stage subsequently owing to wrong furnishing of Tariff Head, then the vendors will be liable to refund such non-admissible amount, if already paid, along with penalty if charged by the concerned authority. In case the Duties & Taxes which are non CENVAT-able as per the quotes indicated in the price schedule by the vendors and subsequently at any stage it is found that Credit for such Duties & Taxes is admissible as per CENVAT Credit Rules, 2004, then the vendors will be liable to refund the amount equivalent to such Duties & Taxes if already paid to them. However, the purchaser may allow the supplier to submit necessary documents in this regard which may enable the purchaser to avail the CENVAT credit provided such credit
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(c)

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(d)

(e)

is still available for the amount so paid as per CENVAT Credit Rules 2004. The purchaser reserves the right to ask the bidders to submit documentary proof confirming the correct Tariff Head from the E.D./Customs authority where the Tariff Head furnished against the particular tendered item by different bidders differs from each other or the same is found apparently not furnished in accordance with E.D./ Customs Tariff notifications. If the supplier fails to furnish necessary supporting documents i.e. Excise/ Customs invoices etc. in respect of the Duties/taxes which are Cenvatable, the amount pertaining to such Duties/ Taxes will be deducted from the payment due to the firm.

23.0 23.1

CONTACTING THE PURCHASER Subject to Clause 20, no bidder shall try to influence the Purchaser on any matter relating to its bid, from the time of the bid opening till the time the contract is awarded. Any effort by a bidder to modify its bid or influence the purchaser in the purchaser's bid evaluation, bid comparison or contract award decision shall result in the rejection of the bid.

23.2

24.0 PLACEMENT OF ORDER 24.1. The Purchaser shall consider placement of orders for commercial supplies only on those eligible bidders whose offers have been found technically, commercially and financially acceptable and whose goods have been type approved/ validated by the purchaser. The Purchaser reserves the right to counter offer price(s) against price(s) quoted by any bidder. 24.2 The ordering price of any bidder shall not exceed the lowest evaluated package price. 24.3. The purchaser reserves the right for the placement of order of entire tendered quantity on the bidder with the lowest evaluated price. 24.4 In the event of L2 and so on bidders refusing to accept its package de rated to the price of L1 bidder, BSNL reserves the right to place the order for entire quantity to the L1 bidder. It is mandatory for the L1 bidder to accept such an offer (second APO) at evaluated L-1 price and shall perform the whole contract as envisaged in the tender document. The additional quantity, due to non-acceptance of respective quantity by L2 and/or L3 and so on bidders, as envisaged in clause3 (Distribution of Quantity) in section 4 Part B, shall be supplied by the L-1 bidder as part of whole contract. 25. PURCHASER'S RIGHT TO VARY QUANTITIES (a) BSNL reserves the right to increase or decrease up to 25% of the quantity of goods and services specified in the schedule of
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requirements without any change in the unit price or other terms and conditions at the time of award of contract. (b) BSNL also reserves the right for placement of additional order or up to 50% of the additional quantities of goods and services contained in the running tender/ contract within a period of twelve months from the date of acceptance of first APO in the tender at the same rate or a rate negotiated (downwardly) with the existing venders considering the reasonability of rates based on prevailing market conditions and the impact of reduction in duties and taxes etc and supplies to be obtained within delivery period scheduled afresh. c) In exceptional situation where the requirement is of an emergent nature and it is necessary to ensure continued supplies from the existing venders, the purchaser reserves the right to place repeat order up to 100% of the quantities of goods and services contained in the running tender /contract within a period of twelve months from the date of acceptance of first APO in the tender at the same rate or a rate negotiated (downwardly) with the existing venders considering the reasonability of rates based on prevailing market conditions and the impact of reduction in duties and taxes etc. Exceptional situation and emergent nature should be spelt out clearly detailing the justification as well as benefits accrued out of it and loss incurred in case this provision is not invoked and approved by the authority competent to accord administrative and financial approval for the procurement calculated on the basis of total procurement i.e. initial and proposed add-on quantity. 26. PURCHASER'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL BIDS The Purchaser reserves the right to accept or reject any bid, and to annul the bidding process and reject all bids, at any time prior to award of contract without assigning any reason whatsoever and without thereby incurring any liability to the affected bidder or bidders on the grounds of purchasers action.

27. ISSUE OF ADVANCE PURCHASE ORDER 27.1. The issue of an Advance Purchase Order shall constitute the intention of the Purchaser to enter into contract with the bidder. 27.2 The bidder shall within 14 days of issue of the advance purchase order, give its acceptance along with performance security in conformity with the proforma provided with the bid document at Section-7C. 27.3 L-1 bidder may be issued Advanced Purchase Order (APO) in two stages. The first APO shall be issued for L-1 quantity as defined in clause above. The second APO may be issued to L-1 bidder only when the Purchaser exercises the right for placement of order on balance tendered quantity on
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the bidder with the lowest evaluated price in conformity to Clause 24.3 & 24.4 of Section 4 Part A.

28. 28.1 28.2

SIGNING OF CONTRACT The issue of Purchase order shall constitute the award of contract on the bidder. Upon the successful bidder furnishing performance security pursuant to clause 27, the Purchaser shall discharge the bid security in pursuant to clause 12, except in case of L-1 bidder, whose EMBG/ EMD shall be released only after finalization of ordering of complete tendered quantity in pursuance to clause no. 24.4 & 27.3 of this section.. ANNULMENT OF AWARD Failure of the successful bidder to comply with the requirement of clause 27 & 28 shall constitute sufficient ground for the annulment of the award and the forfeiture of the bid security in which event the Purchaser may make the award to any other bidder at the discretion of the purchaser or call for new bids.

29.

30. QUALITY ASSURANCE REQUIREMENTS The supplier shall have Quality Management System supported and evidenced by the following: a) A Quality Policy. b) A management representative with authority and responsibility for fulfilling QA requirements and for interfacing with purchaser in the matters of Quality. c) Procedure for controlling design/ production engineering, materials, choice of components/vendors, manufacturing and packaging process for supplying quality products. (d) System of Inward Good Inspection. (e) System to calibrate and maintain required measuring and test equipment. (f) System for tracing the cause for non-conformance (traceability) and segregating product which don't conform to specifications. (g) Configuration management and change-control mechanism. (h) A quality plan for the product. (i) Periodical internal quality audits. (j) A 'Quality Manual' detailing the above Or infrastructure assessment certificate and Type Approval Certificate (TAC)/ Technical Specifications Evaluation Certificate (TSEC) issued by "QA Circle" shall be furnished.

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31. REJECTION OF BIDS 31.1 While all the conditions specified in the Bid documents are critical and are to be complied, special attention of bidder is invited to the following clauses of the bid documents. Non-compliance of any one of these shall result in outright rejection of the bid. a) Clauses 12.1, 12.2 & 13.1 of Section- 4 Part A: The bids will be rejected at opening stage if Bid security is not submitted as per Clauses 12.1 & 12.2 and bid validity is less than the period prescribed in Clause 13.1 mentioned above. b) Clause 2 & 10 of Section-4Part A: If the eligibility condition as per clause 2 of Section 4 Part A is not met and/ or documents prescribed to establish the eligibility as per Clause 10 of section 4 Part A are not enclosed, the bids will be rejected without further evaluation. c) Clause 11.2 (c) of Section-4 Part A: If clause-by-clause compliance as well as deviation statements as prescribed are not given, the bid will be rejected at the stage of primary evaluation. d) While giving compliance to Section-5 Part A, General Commercial conditions, Section-4 Part B, Special Instructions to Bidders, Section-5B Special (Commercial) Conditions of Contract and Section-3 Technical Specifications ambiguous words like "Noted", "Understood", Noted & Understood" shall not be accepted as complied. Mere "Complied" will also be not sufficient, reference to the enclosed documents showing compliances must be given. e) Section-9 Price Schedule: Prices are not filled in as prescribed in price schedule. f) Section-4 Part A clause 9.5 on discount which is reproduced below:"Discount, if any, offered by the bidder shall not be considered unless specifically indicated in the price schedule. Bidders desiring to offer discount shall therefore modify their offer suitably while quoting and shall quote clearly net price taking all such factors like Discount, free supply etc. into account". 31.2 Before outright rejection of the Bid by Bid-opening team for non-compliance of any of the provisions mentioned in clause 31.1(a), 31.1(b) of Section-4PartA, the bidder company is given opportunity to explain their position, however if the person representing the company is not satisfied with the decision of the Bid opening team, he/they can submit the representation to the Bid opening team immediately but in no case after closing of the tender process with full justification quoting specifically the violation of tender condition if any. 31.3 Bid opening team will not return the bids submitted by the bidders on the date of tender opening even if it is liable for rejection and will preserve the bids in sealed cover as submitted by taking the signatures of some of the desirous representatives of the participating bidder/companies present on
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the occasion. 31.4 The in-charge of Bid opening team will mention the number of bids with the name of the company found unsuitable for further processing on the date of tender opening and number of representations received in Bid opening Minutes and if Bid opening team is satisfied with the argument of the bidder/company mentioned in their representation and feel that there is prima-facie fact for consideration, the in-charge of the bid opening team will submit the case for review to Officer competent to approve the tender as early as possible preferably on next working day and decision to this effect should be communicated to the bidder company within a week positively. Bids found liable for rejection and kept preserved on the date of tender opening will be returned to the bidders after issue of P.O. against the instant tender. 31.5 If the reviewing officer finds it fit to open the bid of the petitioner, this should be done by giving three (working) days notice to all the participating bidders to give opportunity to participants desirous to be present on the occasion. 32. Purchasers right to disqualify Purchaser reserves the right to disqualify the supplier for a suitable period (not less than one year & not more than 2 years) who habitually failed to supply the equipment in time. Further, the suppliers whose equipment does not perform satisfactory in the field in accordance with the specifications may also be disqualified for a suitable period (not less than one year & not more than 2 years)as decided by the purchaser. PURCHASERS RIGHT TO BAN BUSINESS DEALINGS Purchaser reserves the right to bar the bidder from participating in future tenders/EOIs/ RFPs of BSNL for a period of two years in case he fails to honour its bid without sufficient grounds.

33.

34. NEAR-RELATIONSHIP CERTIFICATE 34.1. The bidder should give a certificate that none of his/ her near relative, as defined below, is working in the units where he is going to apply for the tender. In case of proprietorship firm certificate will be given by the proprietor. For partnership firm certificate will be given by all the partners and in case of limited company by all the Directors of the company excluding Government of India/ Financial institution nominees and independent non-Official part time Directors appointed by Govt. of India or the Governor of the state and full time Directors of PSUs both state and central. Due to any breach of these conditions by the company or firm or any other person the tender will be cancelled and Bid Security will be forfeited at any stage whenever it is noticed and BSNL will not pay any damage to the company or firm or the concerned person.
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34.2. The Company or firm or the person will also be debarred for further participation in the concerned unit. 34.3 The near relatives for this purpose are defined as:(a) Members of a Hindu undivided family. (b) They are husband and wife. (c) The one is related to the other in the manner as father, mother, son(s) & Son's wife (daughter in law), Daughter(s) and daughter's husband (son in law), brother(s) and brother's wife, sister(s) and sister's husband (brother in law). 34.4. The format of the certificate is given in Section 6 (B). 35. VERIFICATION OF DOCUMENTS AND CERTIFICATES The bidder will verify the genuineness and correctness of all documents and certificates, including experience/performance certificates, issued either by the bidder or any other firm / associate before submitting them in the bid. The onus of proving genuineness of the submitted documents would rest with the bidder. As per requirement of the tenders conditions, if any document / paper / certificate submitted by the participant bidder is found to be false / fabricated / tempered / manipulated at any stage during bid evaluation or award of contract, then the bid security (EMBG) of the bidder would be forfeited and the bidder would be disqualified from the tender. Action would also be taken for banning of business dealing with the defaulting firm. In case contract has already awarded to the bidder, then PBG would be forfeited and the contract would be rescind / annulled and BSNL would be at liberty to procure the ordered goods and services from any other source at the risk and cost of the defaulting bidder. Action would also be taken for banning business dealing with the defaulting firm. Note for MM Cell :To obviate any possibility of doubt and dispute and maintain veracity of the documents / papers / certificates, the documents conforming to eligibility part will be submitted by the participant bidder duly authenticated by the authorized signatory along with EMBG (bid security) of requisite amount and will be checked at the time of tender opening. The documents / papers to be submitted in respective bid part will be explicitly mentioned in clause- 31(vii) of Section-4 Part A. This bid part already signed by the authorized representative of the bidder company during bid submission) will be signed by the in charge of the tender opening team and will be kept preserved along with the bid submitted online. In case of any dispute these papers will be treated as authentic one. 36. Security Clause as per latest guidelines and requirement Mandatory Licensing requirements with regards to security related concerns
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issued by the Government of India from time-to-time shall be strictly followed and appropriate clauses shall be added in all bid documents. Necessary guidelines in this regard shall be issued separately. 37. Reservation/ Procurement from MSE units: The guidelines / instructions / laws issued vide D.O. no 21(1) -2011-M.A..April 25th, 2012 from Ministry of Micro, Small & Medium Enterprise (MSME) with respect to provisions for Micro & Small Enterprises (MSEs) shall be followed. Note This clause shall be deleted if not applicable for the tender.

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SECTION-4 Part B SPECIAL INSTRUCTIONS TO BIDDERS The Special Instructions to Bidders shall supplement the 'Instructions to Bidders' and in case of any conflict with those in Section-4 Part A i.e. GENERAL INSTRUCTIONS TO BIDDERS (GIB), the provisions herein shall prevail. 1. Eligibility Conditions Eligibility conditions for each tender shall be framed on case-to-case basis and shall be got approved from the tender approving authority. Some hints on framing of eligibility conditions are given below: The eligible bidders should be Indian companies registered to manufacture the tendered item in India, having obtained clearance from Reserve Bank of India wherever applicable. They should have obtained valid Type Approval Certificate (TAC) from Telecom Engineering Centre, DOT or TSEC from QA Wing of BSNL for the tendered item against Technical Specifications given in the bid document and should have successfully executed Educational/ Commercial orders issued by BSNL/ MTNL/ DOT. The proof of manufacturing in India, Type Approval Certificate (TAC) or Technical Specification Evaluation Certificate (TSEC) and successful execution of educational/ commercial orders shall form part of the bid.

Note :- The eligibility conditions for procurement of different types of equipment should be decided taking into account: 1. Type of equipment 2. First procurement or repetitive procurement 3. Available base of type approved vendors 4. Status of commercial/ Educational order execution The eligibility conditions need to be clearly defined as follows: That bidders having type approval of the specified GR are eligible to participate in the tender. The bidders having type approval of the old GR for the same equipment are also eligible to participate. Such bidders have to obtain Type Approval Certificate or get their equipment validated before placement of APO/ PO as the case may be. However, the successful bidder will have to supply the equipment as per the technical specifications given in the bid document.
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A special condition will be included in the bid document specifying the time frame for obtaining TAC/ completion of validation.

For the items, which are being procured for the first time where no vender or very few venders have obtained type approval so far, the eligibility conditions may be defined as follows: The bidder or its collaborator should have supplied 25% of the tendered quantity to any other telecom service provider and a certificate given by the competent authority to be enclosed along with the bid. In addition, it shall have to get the offered equipment Type Approved/Validated against the specified GR in a time frame to be defined in the bid document. Note: After issue of NIT, eligibility conditions should not be changed. 2. Bid Security The bank guarantee/DD for bid security or Micro & Small Enterprise (MSE) registration certificate for claiming exemption from submission of bid security, as prescribed in clauses 12.1 & 12.2 of Section-4 A of the bid document should be submitted by the bidder in a separate cover. The bank guarantee/DD so submitted shall be as per the format given in Section-7 E on prescribed judicial paper with stamps of proper value and should contain full address of the issuing branch of the bank with its telephone number and FAX number. Distribution of Quantity (i) The Purchaser intends to limit the number of technically and commercially responsive ..(N) bidders from the list of such bidders arranged in increasing order of their evaluated prices starting from the lowest for the purpose of ordering against this tender. The distribution of the quantity shall be as given in Table 1 below. Table 1(A) (Without provisions for MSE Units) No. of Bidders Quantity allotted to the respective bidder to be approved (Col. 2) (Col. 1) L1 L2 L3 L4 L5 and so on One bidder Two Bidders Three Bidders Four Bidders 100% Nil 60% 50 % 40 % 40% 30 % Nil Nil 20 % Nil Nil 10 % Nil Nil Nil Nil
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3.

30 % 20 % Nil

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More than four 40% bidders

In the inverse ratio of their evaluated quoted prices

Table 1(B) (With provisions for MSE Units) No. of Quantity allotted to the respective bidder Bidders to (Col. 2) be approved L1 L2 L3 L4 L5 and so on (Col. 1) One bidder Three Bidders Four Bidders 80% 40 % 24 % 32 % 24 % 16 % 8% Nil 20% Nil 32% Nil Nil Nil Nil Nil Nil Nil Two Bidders 48% Qty earmarked for MSE bidder(s) (Col. 3) 20 % 20% 20%

16 % Nil

More than 32% four bidders

In the inverse ratio of their evaluated 20% quoted prices

Note 1(a):Table 1(B)shall be followed if the tender has provision for reservations for MSE units. Note 1(b): In case of tenders like for Turnkey projects etc. where it is not feasible to award the work to more than one bidder, the provisions for MSEs shall not be made. Note 2: If no eligible MSE bidders are available then aforesaid earmarked 20% quantity shall be de-reserved & the allotted quantity for other general bidders will be restored to 100% and distribution shall be as per Table -1(A) above. Note 3: If L-1, L-2, L-3, etc happens to be MSE bidders then they will be given allotted quantity as per the applicable sub-column of column 2 of above table. In case, there are MSE bidders whose quoted price is within +15% of L-1 price then 20% reserved quantity shall be distributed amongst such MSE bidders. (ii) In the event of any of the eligible bidder(s) not agreeing to supply the equipment or not being considered by BSNL for ordering the equipment, inter-se ranking of the bidders below the aforesaid bidder(s) will be recast to fill up the vacated slot(s). This will be done to ensure that the number of bidders on which order for supply of equipment to be placed remains same as specified in the tender. Note: See guidelines for distribution of quantity in Chapter 9 Note: Additional clauses may be added related to evaluation criteria, additional documents required to be furnished, single stage or two-stage bidding, etc.
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for which Chapter 3 may kindly be referred. Note: De-rating factor shall be calculated for determination of ordering price in r/o L-2 & others based on L-1 price.

Section- 4 Part C E-tendering Instructions to Bidders Note :-The instructions given below are TCILs e-tender portal-centric and for e-tenders invited by MM cell, BSNL, C.O. only. E-Portal address and the according references/clauses may be suitably modified in this section as applicable from time to time. General These Special Instructions (for e-Tendering) supplement Instruction to Bidders, as enclosed in Sec 4 Part A of the Tender Documents. Submission of Bids only through online process is mandatory for this Tender. For conducting electronic tendering, BSNL HQ is using the portal (https://www.tcil-india-electronictender.com)/ of M/s TCIL, a Government of India Undertaking. 1. Tender Bidding Methodology: Sealed Bid System (number of) Stages Using Single/Two Envelopes, Followed by e-Reverse Auction (if required by Business Unit / Planning cell) after opening of the Financial bids. In case of two envelope system Financial & Techno-commercial bids shall be submitted by the bidder at the same time. 2. Broad outline of activities from Bidders prospective: 1. Procure a Digital Signing Certificate (DSC) 2. Register on Electronic Tendering System (ETS) 3. Create Users and assign roles on ETS 4. View Notice Inviting Tender (NIT) on ETS 5. Download Official Copy of Tender Documents from ETS 6. Clarification to Tender Documents on ETS Query to BSNL (Optional) View response to queries posted by BSNL, as addenda. 7. Bid-Submission on ETS 8. Attend Public Online Tender Opening Event (TOE) on ETS Opening of Techno-commercial Part 9. View Post-TOE Clarification posted by BSNL on ETS (Optional) Respond to BSNLs Post-TOE queries

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10.

Attend Public Online Tender Opening Event (TOE) on ETS Opening of Financial-Part (Only for Technical Responsive Bidders) 11. Participate in e-Reverse Auction on ETS For participating in this tender online, the following instructions need to be read carefully. These instructions are supplemented with more detailed guidelines on the relevant screens of the ETS.

3. Digital Certificates For integrity of data and its authenticity/ non-repudiation of electronic records, and be compliant with IT Act 2000, it is necessary for each user to have a Digital Certificate (DC). also referred to as Digital Signature Certificate (DSC), of Class 2 or above, issued by a Certifying Authority (CA) licensed by Controller of Certifying Authorities (CCA) [refer http://www.cca.gov.in]. 4. Registration To use the Electronic Tender portal (https://www.tcil-india-electronictender.com), vendor needs to register on the portal. Registration of each organization is to be done by one of its senior persons who will be the main person coordinating for the e-tendering activities. In ETS terminology, this person will be referred to as the Super User (SU) of that organization. For further details, please visit the website/portal, and click on the Supplier Organization link under Registration (on the Home Page), and follow further instructions as given on the site. Pay Annual Registration Fee as applicable. Note: After successful submission of Registration details and Annual Registration Fee (as applicable). Please contact TCIL/ ETS Helpdesk (as given below), to get your registration accepted/activated. TCIL Helpdesk/ Helpdesk Telephone Mobile Nos. E-mail ID ETS (011) 2624 1071 / 2624 1072 [between 9:30 hrs to 18:00 hrs on working days] 98683 93717 / 98683 93775 ets_support@tcil-india.com [Please mark CC: support@electronictender.com]

BSNL Contact-1 BSNLs Contact Person Telephone/ Mobile E-mail ID

(011) 2371 7844 [between 9:30 hrs to 18:00 hrs on working days]

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BSNL Contact-2 BSNLs Contact Person Telephone/ Mobile E-mail ID 5.

(011) 2303 7172 [between 9:30 hrs to 18:00 hrs on working days]

Bid related Information for this Tender (Sealed Bid) The entire bid-submission would be online on ETS. Broad outline of submissions are as follows: Submission of Bid Security/ Earnest Money Deposit (EMD) Submission of digitally signed copy of Tender Documents/ Addendum/addenda Two Envelopes Techno-commercial -Part Financial-Part Offline Submissions: The bidder is requested to submit the following documents offline to DM (MMT), BSNL Corporate Office, 2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi 110001 on or before the date & time of submission of bids specified in covering letter of this tender document, in a Sealed Envelope. The envelope shall bear (name of the work), the tender number and the words DO NOT OPEN BEFORE (due date & time). 1. EMD-Bid Security in Original. 2. DD/ Bankers cheque against payment of tender fee. 3. Power of attorney in accordance with clause 14.4 of Section-4 Part A. 4. Integrity Pact.( If applicable) Special Note on Security of Bids Security related functionality has been rigorously implemented in ETS in a multi-dimensional manner. Starting with 'Acceptance of Registration by the Service Provider', provision for security has been made at various stages in Electronic Tenders software. Security related aspects as regard Bid Submission are outlined below: As part of the Electronic Encrypter functionality, the contents of both the Electronic Forms and the Main-Bid are securely encrypted using a Pass-Phrase created by the Bidder himself. Unlike a password, a Pass-Phrase can be a multi-word sentence with spaces between words (e.g. I love this World). A Pass-Phrase is easier to remember, and more difficult to break. It is recommended that a separate Pass-Phrase be created for each Bid-Part. This method of bid-encryption does not have the security and data-integrity related vulnerabilities which are inherent in e-tendering systems which use Public-Key of the specified officer of a Buyer organization
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6.

7.

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for bid-encryption. Bid-encryption in ETS is such that the Bids cannot be decrypted before the Public Online Tender Opening Event (TOE), even if there is connivance between the concerned tender-opening officers of the Buyer organization and the personnel of e-tendering service provider.

Typically, Pass-Phrase of the Bid-Part to be opened during a particular Public Online Tender Opening Event (TOE) is furnished online by each bidder during the TOE itself, when demanded by the concerned Tender Opening Officers who will open the bid. Else Tender Opening Officer may authorize the bidder to open his bid himself. There is an additional protection with SSL Encryption during transit from the client-end computer of a Supplier organization to the e-tendering server/ portal. 8. Public Online Tender Opening Event (TOE) ETS offers a unique facility for Public Online Tender Opening Event (TOE). Tender Opening Officers as well as authorized representatives of bidders can attend the Public Online Tender Opening Event (TOE) from the comfort of their offices. For this purpose, representatives of bidders (i.e. Supplier organization) dully authorized are requested to carry a Laptop and Wireless Connectivity to Internet. Every legal requirement for a transparent and secure Public Online Tender Opening Event (TOE) has been implemented on ETS. As soon as a Bid is decrypted with the corresponding Pass-Phrase as submitted online by the bidder himself (during the TOE itself), salient points of the Bids are simultaneously made available for downloading by all participating bidders. The work of taking notes during a manual Tender Opening Event is therefore replaced with this superior and convenient form of Public Online Tender Opening Event (TOE). ETS has a unique facility of Online Comparison Chart which is dynamically updated as each online bid is opened. The format of the chart is based on inputs provided by the Buyer for each Tender. The information in the Comparison Chart is based on the data submitted by the Bidders in electronic forms. A detailed Technical and/ or Financial Comparison Chart enhances Transparency. Detailed instructions are given on relevant screens. ETS has a unique facility of a detailed report titled Minutes of Online Tender Opening Event (TOE) covering all important activities of Online Tender Opening Event (TOE). This is available to all participating bidders for Viewing/ Downloading. There are many more facilities and features on ETS. For a particular tender, the screens viewed by a Supplier will depend upon the options selected by
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the concerned Buyer. NOTE: In case of internet related problem at a bidders end, especially during critical events such as a short period before bid-submission deadline, during online public tender opening event, during e-auction, it is the bidders responsibility to have backup internet connections. In case there is a problem at the e-procurement/ e-auction service-providers end (in the server, leased line, etc) due to which all the bidders face a problem during critical events, and this is brought to the notice of BSNL by the bidders in time, then BSNL will promptly re-schedule the affected event(s). 9. E-Reverse Auction E-Reverse Auction would be conducted on Unit/ total package/ net cost to BSNL value for bid evaluation, subsequently after the opening of the Financial-Part. The following would be parameters for e-Reverse Auction: S. No. Parameter Value Date and Time of Reverse-Auction Bidding Event Will be intimated to Technically Responsive bidders after the opening of Financial-part. ( Typically 1 to 2 ) Hours Yes

2 3

Duration of Reverse-Auction Bidding Event Automatic extension of the Reverse-Auction Closing Time, if last bid received is within a Pre-defined Time-Duration before the Reverse-Auction Closing Time Pre-defined Time-Duration Time-Duration of Automatic extension Maximum number of Auto-Extensions

3.1 3.2 3.3

. xx Minutes(Typically 05 minutes) ..yy Minutes (Typically 10 minutes) ..nn Automatic Extensions. (Typically 04 to 06 extensions) Beat on Starting last quoted Price, as well as, Beat on Rank-1 Bid Value Unit/ total package/ net
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Criteria of Bid-Acceptance

Entity Start-Price

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cost to BSNL (To be decided by planning cell) 6 Minimum Bid-Decrement ..( Value in Currency) To be decided by planning cell To all Bidders, as well as, BSNLs officers. Yes

7 8

Display of Pseudo Identity of Bidders during bidding period Display of Bidders own current Rank

Note : Parameters at S. No. 5 & 6 shall be confirmed after opening & evaluation of Financial bid parts. 10. Other Instructions For further instructions, the vendor should visit the home-page of the portal (https://www.tcil-india-electronictender.com), and go to the User-Guidance Center The help information provided through ETS User-Guidance Center is available in three categories Users intending to Register / First-Time Users, Logged-in users of Buyer organizations, and Logged-in users of Supplier organizations. Various links are provided under each of the three categories. Note: It is strongly recommended that all authorized users of Supplier organizations should thoroughly peruse the information provided under the relevant links, and take appropriate action. This will prevent hiccups, and minimize teething problems during the use of ETS. The following FOUR KEY INSTRUCTIONS for BIDDERS must be assiduously adhered to: 1. Obtain individual Digital Signing Certificate (DSC or DC) well in advance of your first tender submission deadline on ETS. 2. Register your organization on ETS well in advance of your first tender submission deadline on ETS 3. Get your organizations concerned executives trained on ETS well in advance of your first tender submission deadline on ETS 4. Submit your bids well in advance of tender submission deadline on ETS as there could be last minute problems due to internet timeout, breakdown, etc. While the first three instructions mentioned above are especially relevant to first-time users of ETS, the fourth instruction is relevant at all times.

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11.

Minimum Requirements at Bidders end Computer System with good configuration (Min P IV, 1 GB RAM, Windows XP) Broadband connectivity. Microsoft Internet Explorer 6.0 or above Digital Certificate(s) for users. Vendors Training Program One day training (10:00 to 17:00) would be provided. Training is optional. Vendors are requested to carry a Laptop and Wireless Connectivity to Internet. Tentative Dates Date of uploading of Tender document + 7 days Venue Meeting Room, 2nd Floor, BSNL Corporate Office, Bharat Sanchar Bhawan, Janpath, New Delhi 110001 Vendors Training Charges Rs. 2,500/(Per Participant) per training (plus Service Tax as applicable) day Mode of Payment of Fees DD drawn in favour of M/s TCIL, New Delhi & payable at New Delhi

12.

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SECTION-5 Part A GENERAL (COMMERCIAL) CONDITIONS OF CONTRACT 1. APPLICATION The general condition shall apply in contracts made by the purchaser for the procurement of goods. STANDARDS The goods supplied under this contract shall conform to the standards prescribed in the Technical Specifications mentioned in section -3. PATENT RIGHTS The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark or industrial design rights arising from use of the goods or any part thereof in Indian Telecom Network. PERFORMANCE SECURITY All suppliers (including MSEs who are registered with the designated MSME bodies, like National Small Scale Industries Corporation etc. shall furnish performance security to the purchaser for an amount equal to 5% of the value of Advance purchase order within 14 days from the date of issue of Advance Purchase Order by the Purchaser. The proceeds of the performance security shall be payable to the Purchaser as compensation for any loss resulting from the supplier's failure to complete its obligations under the contract. The performance security Bond shall be in the form of Bank Guarantee issued by a scheduled Bank and in the proforma provided in 'Section-7C of this Bid Document. The performance security Bond will be discharged by the Purchaser after completion of the supplier's performance obligations including any warranty obligations under the contract. INSPECTION AND TESTS The Purchaser or its representative shall have the right to inspect and test the goods as per prescribed test schedules for their conformity to the specifications. Where the Purchaser decides to conduct such tests on the premises of the supplier or its subcontractor(s), all reasonable facilities and assistance like Testing instruments and other test gadgets including access to drawings and production data shall be furnished to the inspectors at no charge to the purchaser. Should any inspected or tested goods fail to conform to the specifications the
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2.

3.

4. 4.1

4.2

4.3

4.4

5. 5.1

5.2

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5.3

5.4

5.5

5.6

purchaser may reject them and the supplier shall either replace the rejected goods or make all alterations necessary to meet Specification / requirements free of cost to the purchaser. Notwithstanding the pre-supply tests and inspections prescribed in clause 5.1 & 5.2 above, the equipment and accessories on receipt in the Purchaser's premises will also be tested during and after installation before "take over" and if any equipment or part thereof is found defective, the same shall be replaced free of all cost to the purchaser as laid down in clause 5.4 below. If any equipment or any part thereof, before it is taken over under clause 5.5, is found defective or fails to fulfill the requirements of the contract, the inspector shall give the Supplier notice setting forth details of such defects or failure and the supplier shall make the defective equipment good, or alter the same to make it comply with the requirements of the contract forthwith and in any case within a period not exceeding three months of the initial report. These replacements shall be made by the supplier free of all charges at site. Should it fail to do so within this time, the purchaser reserves the discretion to reject and replace at the cost of the supplier the whole or any portion of equipment as the case may be, which is defective or fails to fulfill the requirements of the contract. The cost of any such replacement made by the purchaser shall be deducted from the amount payable to the supplier. When the performance tests called for have been successfully carried out, the inspector / ultimate consignee will forthwith issue a Taking Over Certificate. The inspector /ultimate consignee shall not delay the issue of any "taking Over Certificate" contemplated by this clause on account of minor defects in the equipment which do not materially affect the commercial use thereof provided that the supplier shall undertake to make good the same in a time period not exceeding six months. The Taking Over Certificate shall be issued by the ultimate consignee within six weeks of successful completion of tests. In this case, BCPC (Bills Copy Payable Challan) shall be equivalent to "Taking Over Certificate", issuance of which shall certify receipt of goods in safe and sound condition. However, they shall not discharge the supplier of their warranty obligation. BCPC in respect of last consignment against the purchase order will be equivalent to "Taking Over Certificate". Nothing in clause 5 shall in any way release the Supplier from any warranty or other obligations under this contract. DELIVERY AND DOCUMENTS Delivery of the goods and documents shall be made by the supplier in accordance with the terms specified by the purchaser in its schedule of requirements and special conditions of contracts, and the goods shall remain at the risk of the supplier until delivery has been completed. The delivery of the equipment shall be to the ultimate consignee as given in the purchase
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6. 6.1

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6.2 6.3

6.4

order. The delivery of the goods and documents shall be completed within time frame stated in note 7 of Clause 6 of Section-2 (Tender information). All Technical assistance for installation, commissioning and monitoring of the equipment shall be provided by the Supplier at no extra cost during laboratory evaluation, validation/ type approval and field trial, if any. The extension of delivery period against the purchase order, if any, should be granted subject to the condition that BSNL shall have the absolute right to revise the price(s) and also to levy penalty for the delayed supplies. TRAINING The bidder shall provide training for installation and maintenance staff of the purchaser free of cost where required. The bidder shall specify in its bid the number of trainees, quantum of proposed training, pre-training qualifications required of the trainees and duration of the proposed training. The bidder shall provide all training material and documents. Conduct of training of the purchaser's personnel shall be at the suppliers' plant and/or on-site in assembly start-up operation, maintenance and/or repair of the supplied goods. INCIDENTAL SERVICES The supplier may be required to provide any or all of the following services: (a) Performance or supervision of on-site assembly and/or start-up of the supplied Goods; (b) Furnishing of tools required for assembly and/or maintenance of supplied Goods; (c ) Performance of supervision or maintenance and/or repair of the supplied Goods, for a period of time agreed by the parties provided that this service shall not relieve the supplier of any warranty obligations under this contract. SPARES The supplier shall be required to provide a list of the following material and notifications pertaining to spare parts manufactured or distributed by the supplier of spares including cost and quantity considered for arriving at the price of spares in Sec-4 Part A clause 9. (a) Such spare parts as the purchaser may elect to purchase from the supplier provided that such purchase shall not relieve the supplier of any warranty obligation under the contract. (b) In the event of termination of production of the spare parts, the supplier shall:
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7. 7.1 7.2

7.3 7.4

8.

9. 9.1

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give advance notification to the purchaser pending termination (not less than 2 years), in sufficient time to enable the purchaser to procure life time spare; and (ii) following such advance intimation of termination, furnish at no cost to the purchaser, the blue prints, drawings and specifications of spare parts, if and when requested. 9.2 .Over a period of three years starting from the date of final acceptance, the supplier shall supply, at its own cost, all necessary spares which have not been included in the offer as part of the requirement. These spares should be supplied within a maximum period of 30 days from the notification by the purchaser of its need. 10. 10.1 WARRANTY The supplier shall warrant that the stores to be supplied shall be new and free from all defects and faults in materials used, workmanship and manufacture and shall be of the highest grade and consistent with the established and generally accepted standards for materials of the type ordered and shall perform in full conformity with the specifications and drawings. The supplier shall be responsible for any defect that may develop under the conditions provided by the contract and under proper use, arising from faulty material, design or workmanship such as corrosion of the equipment, inadequate quantity of material to meet equipment requirements, inadequate contact protection, deficiencies in circuit design and/ or otherwise and shall remedy such defects at its own cost when called upon to do so by the Purchaser who shall state in writing in what respect the stores are faulty. This warranty shall survive inspection or payment for/ and acceptance of goods, but shall expire (except in respect of complaints notified prior to such date) twelve months after the stores have been taken over under clause 5.5 above. 10.2 If it becomes necessary for the Supplier to replace or renew any defective portion(s) of the equipment under this clause, the provisions of the clause 10.1 shall apply to the portion(s) of the equipment so replaced or renewed or until the end of the above mentioned period of twelve months, whichever may be later. If any defect is not remedied by the supplier within a reasonable time, the Purchaser may proceed to get the defects remedied from other supplier etc., at the supplier's risk and expenses, but without prejudice to any other rights which the purchaser may have against the supplier in respect of such defects. 10.3 Replacement under warranty clause shall be made by the supplier free of all charges at site including freight, insurance and other incidental charges. 11. 11.1 PAYMENT TERMS Payment of specified percentage of the price as stated in clause 5 of Section
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(i)

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-2 (Tender Information) shall be made on receipt of goods by consignee. For claiming this payment the following documents are to be submitted to the paying authority. (a) Invoice clearly indicating break up details of composite price i.e. Basic, E.D., Sales Tax, any other Duties and Taxes, Freight/Packing Charges, Service Tax etc. (b) Acknowledged Delivery Challan in original. (c) Excise gate pass / invoice or equivalent document, if applicable. (d) Inspection Certificate of QA(Payable copy in original) (e) The sea freight receipt as per the rates approved by the Ministry of Water and Surface Transport, if applicable. (f) Proof of payment of Octroi/ entry tax etc., if applicable. Note :- If the supplier fails to furnish necessary supporting documents i.e. excise/Customs invoices etc. in respect of the Duties/taxes which are CENVAT-able, the amount pertaining to such Duties/Taxes will be deducted from the payment due to the firm. 11.2 The balance payment shall be released within 6 months from the date of supply of the equipment in case there are no damage/shortages. In those cases where such shortages/damages are intimated to the supplier in writing, the balance payment shall be released only after the cases are settled in accordance with the provision of the P.O. 11.3. Form C and also a certificate stating that the tendered item (stores) are meant for the use of BSNL shall be provided by the purchaser on the request of the bidder as and when asked for. 11.4. No payment will be made for goods rejected at the site on testing. 11.5. The bidder has to give the mandate for receiving payment costing Rs.5 lakhs and above electronically and the charges, if any, levied by bank has to be borne by the bidder/ contractor/supplier. The bidder company is required to give the following information for this purpose:(a) Beneficiary Bank Name: (b) Beneficiary branch Name: (c) IFSC code of beneficiary Branch (d) Beneficiary account No.: (e) Branch Serial No. (MICR No.): 12. 12.1 PRICES Prices charged by the supplier for goods delivered and services performed under the contract shall not be higher than the prices quoted by the Supplier in its Bid except for variation caused by change in taxes/ duties as specified
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12.2

12.3

in Clause-12.2 mentioned below. For changes in taxes/ duties during the scheduled delivery period, the unit price shall be regulated as under: (a) Prices will be fixed at the time of issue of purchase order as per taxes and statutory duties applicable at that time (b) In case of reduction of taxes and other statutory duties during the scheduled delivery period, purchaser shall take the benefit of decrease in these taxes/ duties for the supplies made from the date of enactment of revised duties/taxes. (c) In case of increase in duties/taxes during the scheduled delivery period, the purchaser shall revise the prices as per new duties/ taxes for the supplies, to be made during the remaining delivery period as per terms and conditions of the purchase order. Any increase in taxes and other statutory duties/ levies, after the expiry of the delivery date shall be to the supplier's account. However, benefit of any decrease in these taxes/duties shall be passed on to the Purchaser by the supplier. The total price is to be adjusted (by reducing the basic price) with increased duties and taxes as per price mentioned in PO. CHANGES IN PURCHASE ORDERS The purchaser may, at any time, by a written order given to a supplier, make changes within the general scope of the contract in any one or more of the following: (a) drawings, designs or specifications, where Goods to be supplied under the contract are to be specifically manufactured for the Purchaser; (b) the method of transportation or packing; (c) the place of delivery; or (d) the services to be provided by the supplier. If any such change causes an increase or decrease in the cost of, or the time required for the execution of the contract an equitable adjustment shall be made in the contract price or delivery schedule, or both, and the contract shall accordingly be amended. Any proposal by the supplier for adjustment under this clause must be made within thirty days from the date of the receipt of the change in order. SUBCONTRACTS The Supplier shall notify the Purchaser in writing of all subcontracts awarded under this contract if not already specified in its bid. Such notification, in its original bid or later shall not relieve the supplier from any liability or obligation under the Contract.

13. 13.1

13.2

14.

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15. 15.1

DELAYS IN THE SUPPLIER'S PERFORMANCE Delivery of the Goods and performance of the services shall be made by the Supplier in accordance with the time schedule specified by the purchaser in its purchase order. In case the supply is not completed in the stipulated delivery period, as indicated in the Purchase Order, purchaser reserves the right to short-close/ cancel this purchase order and/ or recover liquidated damage charges. The cancellation/ short-closing of the order shall be at the risk and responsibility of the supplier and purchaser reserves the right to purchase balance unsupplied item at the risk and cost of the defaulting vendors. 15.2 Delay by the Supplier in the performance of its delivery obligations shall render the Supplier liable to any or all of the following sanctions: (a) forfeiture of its performance security, (b) imposition of liquidated damages, and/ or (c) Short closure of the contract in part or full and/ or termination of the contract for default. 15.3 If at any time during the performance of the contract, the supplier encounters condition impending timely delivery of the goods and performance of service, the supplier shall: (a) Promptly notify to the Purchaser in writing the fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier's notice, the purchaser shall evaluate the situation and may at its discretion extend the period for performance of the contract (by not more than 20 weeks or as per provisions of clause 16.2 Section-5A as per provision given below : (b) The vendor has to submit their request for extension along with the undertaking as per clause 24 Section-5A (Fall Clause) and a copy of QA inspection certificate at least two weeks before the expiry of delivery period. The vendor shall also submit unconditional acceptance of the conditions for delivery period extension i.e. applicability of liquidated damages, prices to be provisional and to be regulated as per clauses 12.3 and 24 of section-5A and submission of additional BG, wherever applicable. The decision regarding extension shall be communicated within two weeks of the receipt of request and after receipt of the unconditional acceptance and the undertaking mentioned above. (c) In case extension is being granted beyond 20 weeks then the vendor shall submit additional BG while seeking extension. For piecemeal items the amount of additional BG shall be 5% of the value of balance quantity of items to be supplied for which extension in delivery period has been sought. In case of infrastructure/turnkey projects other than as stated above, 1% of the total project value shall be the value for
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15.4

additional BG. The additional BG shall be valid for six months beyond extension of. delivery period sought and shall be discharged after the full ordered quantity has been supplied to the ultimate consignee within the last extended delivery period on submission of inspection certificate from QA and consignee receipt without prejudice to the other remedies available to the purchaser. (d) If the vendor fails to deliver the full ordered quantity even during extended delivery period then the PO shall be short-closed and the Performance Bank Guarantee as well as additional BG shall be forfeited. (e) Format of (i) letters conveying conditions of DP extension and (ii) DP extension letter are at Section 7 Part A& Part B. . If the supplies are not completed in the extended delivery period, the purchase order shall be short-closed and both the Performance securities shall be forfeited. LIQUIDATED DAMAGES The date of delivery of the stores stipulated in the acceptance of the tender should be deemed to be the essence of the contract and delivery must be completed not later than the dates specified therein. Extension will not be given except in exceptional circumstances. Should, however, deliveries be made after expiry of the contracted delivery period, without prior concurrence of the purchaser and be accepted by the consignee, such delivery will not deprive the purchaser of its right to recover liquidated damage under clause 16.2 below. However, when supply is made within 21 days of the contracted original delivery period, the consignee may accept the stores and in such cases the provision of clause 16.2 will not apply. Further, DP extension for this grace period of 21 days shall not be necessary. While granting extension of delivery period as per clause 15.3, the liquidated damages shall be levied as follows: (a) Should the supplier fails to deliver the store or any consignment thereof within the period prescribed and agreed for delivery, the purchaser, without prejudice to other remedies available to the purchaser shall be entitled to recover, as agreed liquidated damages for breach of contract, a sum equivalent to 0.5% of the value of the delayed supply and/ or undelivered material/ supply for each week of delay or part thereof for a period up to 10 (TEN) weeks, and thereafter at the rate of 0.7% of the value of the delayed supply and/ or undelivered material/ supply for each week of delay or part thereof for another TEN weeks of delay. (b) DP extension beyond 20 weeks would not be generally allowed. The extension beyond 20 weeks may be decided in most exceptional circumstances on case to case basis, by the CGM concerned in case of
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16.2

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16.3

16.4

tenders floated by Circles and by the Functional Director concerned in case tenders floated by Corporate Office, stating reasons and justifications for grant of extension of delivery period beyond 20 weeks. (c) In the case of package supply/ turnkey projects when the delayed portion of the supply materially hampers installation and commissioning of the systems, LD charges shall be levied as above on the total value of the concerned package of the Purchase Order. (d) Quantum of liquidated damages assessed and levied by the purchaser and decision of the purchaser thereon shall be final and binding on the supplier, further the same shall not be challenged by the supplier either before Arbitration tribunal or before the court. The same shall stand specifically excluded from the purview of the arbitration clause, as such shall not be referable to arbitration. However, when supply is made to the ultimate consignee within 21 days of QA clearance in the extended delivery period and the goods were dispatched within this delivery period, the consignee may accept the stores and in such cases the LD shall be levied up to the date of dispatch after QA clearance only. (e) The total value of the liquidated damages as per above sub-clauses shall be limited to a maximum of 12% (Twelve percent) i.e. LD shall be levied up to 20 weeks only as per provision at Para (a). In cases where the scheduled delivery period is distributed month-wise or is in installments, the liquidated damages shall be imposed for delay in each scheduled month/ installment. Liquidated damages shall be calculated separately for quantities to be supplied in every month/ installment and the corresponding delay. If the supplier supplies full quantity before the expiry of the scheduled delivery period of the last month/ installment but there is delay in month-wise/ installment-wise supply, then also liquidated damages shall be levied on the supplies against the earlier months/ installments that have been delayed. Twenty (20) weeks for the purpose of additional BG and grant of DP extension shall be counted from the last month/ installment. Wherever Clause of grace period of 21 days exists in the Purchase Order as well as in the Tender document against which the Purchase Order has been released, applicability of the grace period shall be subject to: (a) The Store has been offered to QA by the Supplier for Inspection/Testing within the contracted original delivery period. (b) 'QA has cleared the equipment for dispatch within the contracted original delivery period. (c) The Supplier has carried out dispatch/ dispatched the equipment with in contracted original delivery period. For claiming benefit of grace period, the supplier shall have to satisfy the Paying Authority by furnishing documents of dispatch confirming that it has actually dispatched the equipment within contracted original delivery period.
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(d) (e)

The Store has been received by the ultimate consignee with in 21 days of the expiry of contracted original delivery period. The grace period of 21 days shall be allowed only in those cases which fulfill all the conditions given in Para (a) to (d) above. During grace period no LD charges shall be levied.

Note : 1. In case of turnkey projects, the additional BG and LD clauses related to delay in Installation & commissioning activities, shall be fine-tuned to meet the requirements of the project and shall be included in the special conditions Section-5 Part B of the concerned bid document) after approval of the Management. In these cases, the tender approving authority as per delegation of financial powers shall be competent authority to decide applicability of LD on the Installation and commissioning portion in case delay is on part of BSNL. However, for supply of equipment in such projects, the terms and conditions shall be the same as mentioned in clauses 15.3 and 16.2 of Section-5 Part A. 17. 17.1 FORCE MAJEURE If, at any time, during the continuance of this contract, the performance in whole or in part by either party of any obligation under this contract is prevented or delayed by reasons of any war or hostility, acts of the public enemy, civil commotion, sabotage, fires, floods, explosions, epidemics, quarantine restrictions, strikes, lockouts or act of God (hereinafter referred to as events) provided notice of happenings of any such eventuality is given by either party to the other within 21 days from the date of occurrence thereof, neither party shall by reason of such event be entitled to terminate this contract nor shall either party have any claim for damages against other in respect of such non-performance or delay in performance, and deliveries under the contract shall be resumed as soon as practicable after such an event come to an end or cease to exist, and the decision of the Purchaser as to whether the deliveries have been so resumed or not shall be final and conclusive. Further that if the performance in whole or part of any obligation under this contract is prevented or delayed by reasons of any such event for a period exceeding 60 days, either party may, at its option, terminate the contract. Provided, also that if the contract is terminated under this clause, the Purchaser shall be at liberty to take over from the Supplier at a price to be fixed by the purchaser, which shall be final, all unused, undamaged and acceptable materials, bought out components and stores in course of manufacture which may be in possession of the Supplier at the time of such termination or such portion thereof as the purchaser may deem fit, except such materials, bought out components and stores as the Supplier may with the concurrence of the purchaser elect to retain.
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18. TERMINATION FOR DEFAULT 18.1 The Purchaser may, without prejudice to any other remedy for breach of contract, by written notice of default, sent to the supplier, terminate this contract in whole or in part (a) if the supplier fails to deliver any or all of the goods within the time period(s) specified in the contract, or any extension thereof granted by the purchaser pursuant to clause15; (b) if the supplier fails to perform any other obligation(s) under the Contract; and (c) if the supplier, in either of the above circumstances, does not remedy its failure within a period of 15 days (or such longer period as the purchaser may authorize in writing) after receipt of the default notice from the purchaser. 18.2 In the event the purchaser terminates the contract in whole or in part pursuant to Para 18.1 the purchaser may procure, upon such terms and in such manner as it deems appropriate, goods similar to those undelivered and the supplier shall be liable to the Purchaser for any excess cost for such similar goods. However the supplier shall continue the performance of the contract to the extent not terminated. 19. TERMINATION FOR INSOLVENCY The Purchaser may at any time terminate the Contract by giving written notice to the Supplier, without compensation to the supplier. If the supplier becomes bankrupt or otherwise insolvent as declared by the competent court provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to the purchaser.

20. ARBITRATION 20.1 In the event of any question, dispute or difference arising under this agreement or in connection there-with (except as to the matters, the decision to which is specifically provided under this agreement), the same shall be referred to the sole arbitration of the CMD, BSNL or in case his designation is changed or his office is abolished, then in such cases to the sole arbitration of the officer for the time being entrusted (whether in addition to his own duties or otherwise) with the functions of the CMD, BSNL or by whatever designation such an officer may be called (hereinafter referred to as the said officer), and if the CMD or the said officer is unable or unwilling to act as such, then to the sole arbitration of some other person appointed by the CMD or the said officer. The agreement to appoint an arbitrator will be in accordance with the Arbitration and Conciliation Act 1996 as amended from time to time. There will be no objection to any such appointment on the ground that the arbitrator is a Government Servant or that he has to deal with the matter to
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20.2

20.3

which the agreement relates or that in the course of his duties as a Government Servant he has expressed his views on all or any of the matters in dispute. The award of the arbitrator shall be final and binding on both the parties to the agreement. In the event of such an arbitrator to whom the matter is originally referred, being transferred or vacating his office or being unable to act for any reason whatsoever, the CMD, BSNL or the said officer shall appoint another person to act as an arbitrator in accordance with terms of the agreement and the person so appointed shall be entitled to proceed from the stage at which it was left out by his predecessors. The arbitrator may from time to time with the consent of both the parties enlarge the time frame for making and publishing the award. Subject to the aforesaid, Arbitration and Conciliation Act, 1996 and the rules made there under, any modification thereof for the time being in force shall be deemed to apply to the arbitration proceeding under this clause. The venue of arbitration shall be BSNL CO New Delhi and/or Circle/SSA HQ or the office of the Arbitrator situated at New Delhi or at the respective Territorial Circle/SSA HQ ,as the case may be. SET OFF Any sum of money due and payable to the supplier (including security deposit refundable to him) under this contract may be appropriated by the purchaser or the BSNL or any other person(s) contracting through the BSNL and set off the same against any claim of the Purchaser or BSNL or such other person or person(s) for payment of a sum of money arising out of this contract or under any other contract made by the supplier with the Purchaser or BSNL or such other person(s) contracting through the BSNL. INTIMATION OF SUPPLY STATUS The bidders, who are given Purchase Orders, must give the details of the supplies made against all the Purchase Orders every month on the first working day of the following month to MM and the concerned User Branches of BSNL. DETAILS OF THE PRODUCT The bidder should furnish the name of its collaborator (if applicable), brand name, model number and type of the products offered in this tender. The technical literatures of the products should also be submitted. No change in either technology or product shall be permitted after opening of bids. FALL CLAUSE The prices once fixed will remain valid during the scheduled delivery period except for the provisions in clause 12.1 of Section-5A. Further, if at any time during the contract
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21.

22.

23.

24. 24.1

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(a)

24.2

24.3

24.4

It comes to the notice of purchaser regarding reduction of price for the same or similar equipment/ service; And / or (b) The prices received in a new tender for the same or similar equipment/ service are less than the prices chargeable under the contract. The purchaser, for the purpose of delivery period extension, if any, will determine and intimate the new price, taking into account various related aspects such as quantity, geographical location etc., and the date of its effect for the balance quantity/ service to the vendor. In case the vendor does not accept the new price to be made applicable during the extended delivery period and the date of its effect, the purchaser shall have the right to terminate the contract without accepting any further supplies. This termination of the contract shall be at the risk and responsibility of the supplier and the purchaser reserves the right to purchase the balance unsupplied quantity/ service at the risk and cost of the defaulting vendor besides considering the forfeiture of its performance security. The vendor while applying for extension of time for delivery of equipment/services, if any, shall have to provide an undertaking as "We have not reduced the sale price, and/ or offered to sell the same or similar equipment/ service to any person/ organization including Department of central/state Government or any central/ state PSU at a price lower than the price chargeable under the contract for scheduled delivery period." In case under taking as in Clause 24.3 is not applicable, the vendor will give the details of prices, the name(s) of purchaser, quantity etc. to the purchaser, while applying extension of delivery period.

25. COURT JURISDICTION 25.1 Any dispute arising out of the tender/ bid document/ evaluation of bids/ issue of APO shall be subject to the jurisdiction of the competent court at the place from where the NIT/ tender has been issued. 25.2 Where a contractor has not agreed to arbitration, the dispute/ claims arising out of the Contract/ PO entered with him shall be subject to the jurisdiction of the competent Court at the place from where Contract/ PO has been issued. Accordingly, a stipulation shall be made in the contract as under. This Contract/ PO is subject to jurisdiction of Court at ................. only. Note:- Mandatory Licensing requirements with regards to security related concerns issued by the Government of India from time-to-time shall be strictly followed and appropriate clauses shall be added in all bid documents. Necessary guidelines in this regard shall be issued separately. 26. General Guidelines:The General guidelines as contained in Chapter 5, 6 and 8 of General
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Financial Rules as amended from time to time on works, procurement of goods and services and contract management respectively may also be referred to as guiding principles.

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SECTION 5 Part B SPECIAL (COMMERCIAL) CONDITIONS OF CONTRACT (SCC) (To be provided by User cell) The Special (Commercial) Conditions of Contract (SCC)shall supplement General (Commercial) Conditions of Contract (GCC)) as contained in Section 5 Part A and wherever there is a conflict, the provisions herein shall prevail over those in Section 5 Part A i.e. General (Commercial) Conditions of Contract (GCC) Note: The clauses mentioned below are for reference only. Exact clauses should be framed as per requirement on case-to-case basis. 1. Quality Assurance and Testing: a) The supply will be accepted only after quality assurance tests are carried out by the Quality Assurance Wing of BSNL as per prescribed schedule and material passing the test successfully and after authenticated excise gate pass issued by Excise Authorities. b) The QA units of BSNL while clearing the equipment/ stores will strictly adhere to the package discipline as described in Purchase Order. Supplies made in full, as per Purchase Order, of all the packages during delivery period only will be deemed to have been supplied within the scheduled delivery period.

Note: Generally equipment (indigenous or imported) upon completion of TAC/Validation shall have to be supplied after successful testing by Quality Assurance Wing of BSNL. 2. Spares: Note: The clause regarding spares may be included considering the following aspects: a) The supplier shall be required to provide a list of spare parts recommended for maintenance for three years along with rates at card/ module level. The purchaser may elect to purchase the recommended spares from the supplier at any time including at the end of warranty/ AMC, provided that such purchase shall not relieve the supplier from any warranty/ AMC obligations under the contract. b) The cost of spares shall be discounted @ 15% over warranty/ AMC period (if there is a provision for AMC in the contract) to arrive at the final price of the equipment for the purpose of tender evaluation. c) Over a period of three years starting from the date of final acceptance of the equipment or after the procurement of spares, supplier shall supply at its own cost, spare parts needed which have not been included in the
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offer. These spares should be supplied within a maximum period of thirty days from the notification by the purchaser of its need, without demur. d) In the event of termination of production of the equipment/ spare parts, the supplier shall notify the purchaser at least two years in advance of the impending termination to enable the purchaser to procure life time spares. The supplier shall also provide at its own cost to the purchaser, the blue print drawings and specifications of spare parts if and when requested. 3. Loading: (a) In case any item is not quoted by a Bidder mentioned in the SOR of the tender document or the price of any item is not available in its own bid, then the bid shall be loaded by the highest price quoted by any of the bidders for that item. The loaded item shall be supplied at lowest cost quoted by any of the bidder. (b) Cases in which the bidder has quoted for less quantity for any of the items than that indicated in the SoR of the tender document, then the price bid shall be loaded to the extent of the difference in quantity of the item to meet the full requirement of the SoR on a pro-rata basis for the purpose of evaluation & ordering. (c) No de-loading of the bid is envisaged, if the quoted quantity in the bid is higher than that requested in the tender for the purpose of evaluation. (d) AMC cost shall not be paid for all items supplied free of cost on account of the loading. The same principle shall be applied for the cost towards services and all other items (e) Offer to the L1 bidder(s) after correcting the arithmetical errors and effecting change in unit prices due to loading shall not tantamount to counter offer. If not accepted by the bidder, then he/ she shall be liable to be barred from participating in future tenders/ EOIs/ RFPs of BSNL for a period of two years.

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Section 5 Part C General Conditions of AMC 1. 2. Period of Warranty & AMC (if any) shall be prescribed Repair of faulty equipment and setting up of Repair Facilities:

Note: The clause regarding repair of faulty equipment and setting up of Repair Facilities may be included considering the following aspects: a) The supplier shall establish adequate repair facilities for repair of faulty equipment in India within a period six months from the date of purchase order. The number and location of repair facilities should be such as to meet the requirement of repairs and turn-around time provided in the special conditions in Section-5 Part B. The performance bank guarantee shall not be released until the purchaser is satisfied that sufficient repair facilities have been established in addition to the fulfillment of other conditions of the contract. The purchaser reserves the right to blacklist a supplier who does not meet the repair obligation as per the conditions of contract. b) The supplier shall quote rates for repair of each card/ module in Section-9 Part II as a percentage of the cost of that module and also in value in rupees. Total cost of repair for each type of module shall be loaded for the purpose of evaluation. 3. Annual Maintenance Contract (AMC): a) AMC shall come into effect after completion of warranty period and shall remain valid for ____ years. Warranty of equipment/ Units/ terminals shall start from the date of acceptance by the consignee of the last batch of equipment/Units/terminals in the Circle. b) Terms and conditions of AMC shall be applicable during Warranty period including imposition of penalties except that no charges for services provided under Warranty/ extended warranty shall be payable. Amount for penalties will be deducted from the pending payments against supplies or if that amount is insufficient then by invoking the PBG available against supply or AMC or from the charges due for AMC. c) It shall be mandatory for the bidders to undertake the Annual maintenance contract for ____ years to be signed at the time of acceptance of APO for entire quantity proposed to be ordered. The selected bidder has to submit a signed copy of the AMC agreement along with the A.P.O.
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d)

e)

f)

g)

h)

i)

j)

k)

For this purpose the bidder shall quote all inclusive Comprehensive AMC charges for each year. However, service tax shall be paid extra as applicable. AMC charges shall be included in evaluation of price bid, by applying a discounted rate of 12% per year to arrive at the NPV (Net Present Value). The quote for AMC should be as a % (percent) of equipment cost(excluding duties and taxes CENVAT-able i.e. net cost to BSNL) and it is mandatory to quote yearly charge in Rs. in a column in Section-9 of tender document. The concerned User cell should specify the minimum charge in percentage for AMC for evaluation purpose. The bidder shall establish at least one Nodal Repair Center in the country or each region/circle of BSNL within a period of 4 months (from the date of placement of PO) or as defined in the bid document, where their equipment is allotted for supply to keep the turn around time for repair of faulty terminals/units to minimum. The supplier shall provide the list of Nodal Repair Center and designated Courier service/ agency with their addresses/ Tel. No./ Fax. No./ E-Mail etc. within 4 months from date of placement of P. O. The supplier (including designated courier service/ agency) shall accept all the faulty equipment/ terminals/ units for repair or replacement within prescribed turnaround time. The bidder shall submit a performance bank guarantee towards fulfillment of obligations under AMC, in each Circle equivalent to 2% of the cost of equipment as per P.O. or the first year AMC charge pertaining to that Circle whichever is higher, in a prescribed proforma. The PBG shall be submitted at least two months in advance of date of start of AMC. The PBG shall be valid for a period of______ years to cover one year or as specified over and above the _____ years AMC period. The PBG shall be extendable for a further period as required if there is any delay in start of AMC for any reason. For the additional equipment, the amount of PBG shall be increased at the same rate as indicated above, within a time period of one month of the date of such equipment getting covered under AMC. The Performance Bank Guarantee against the P.O. will be released only after submission of PBG against AMC in each Circle and fulfillment of other obligations of AMC or P.O. which are pre-requisite for release of the PBG. For the services rendered during the half-year, the payment shall be made at the end of each half year at circle office, normally within a period of 21 days from the date of submission of bills duly certified by the concerned unit. In case the supplier fails to repair the faulty equipments/ terminal/ units and deliver the repaired one in the concerned BSNL office within
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l)

m)

n)

stipulated turnaround time of ____ days, it shall be liable to pay penalty at the rate as defined in the bid document Rs. ______ per equipment/ PCB/ Assembly/ Sub-assembly/Terminal/ unit per day/ week or part thereof for the entire period counted from the date of making over the faulty equipment/ Units by BSNL to suppliers/ designated courier to the actual date of delivery of repaired Units including Saturday, Sunday and holidays. Capping on penalty will be 25% of the AMC value for the corresponding period or as decided on case-to-case basis of the AMC value for that period. Any Unit neither returned during the turnaround time period nor declared as RNP (Repair Not Possible) within 60 days of its handing over to the designated courier/ agency/ center, an amount equivalent to 1.5 times the cost of equipment/ unit shall be levied from the supplier. This cost will not be counted as penalty, for the purpose of 25% cap on penalty as mentioned in above Para. Not more than 1% of the total equipment/ units sent in an year (of AMC) for repair will be declared as RNP (Repair Not Possible) by the supplier. BSNL shall reimburse up to a maximum of 1% of the cost of equipment sent for repair against replacement cost of equipment declared as RNP. The consumables should not be part of AMC except the large capacity batteries supplied if any, with the BSCs/ BTSs etc. in WLL tenders in future. However, if BSNL so desires, the supplier shall be bound to provide these items at the itemized price in their bids for initial currency period of AMC.

Note:-The aforesaid clauses are to be incorporated in Procurement Manual as a guiding factor for AMC and aimed to achieve smooth and proper working of the equipment during its predicted life span with practical workable approach without increasing the cost considerably. The terms and conditions may undergo change as per requirement of the procurement. The concerned User Cell of Corporate Office and relevant wings of field units of BSNL preparing tender conditions should also include the agreement for Comprehensive Annual Maintenance Contract detailing the post warranty and within warranty period maintenance obligations as well as scope of work. The riders mentioned in sub-clauses (v), (vi), (viii), (xii) and (xiii) respectively for 4 months, 4 months, six years, 60 days and 1% may undergo suitable change as justified with the approval of competent authority. Other clauses may be defined as per the need e.g. (1) Specific payment terms for payment of equipment including installation, services, AMC/ARC etc. if any (Apart from clause 11of Section 5 Part A) (2) AMC is mandatory or optional on need basis.
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(3) (4)

Optional items for BSNL/Optional items for vendors and its treatment for the purpose of financial evaluation. The actual payment conditions for new products or procurement having installation and AMC services may be decided on case to case basis and incorporated in special conditions of contract.

***

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SECTION-6 UNDERTAKING & DECLARATION

6(A) - For understanding the terms & condition of Tender & Spec. of work

a)

Certified that: 1. I/ We . have read, understood and agree with all the terms and conditions, specifications included in the tender documents & offer to execute the work at the rates quoted by us in the tender form. If I/ We fail to enter into the agreement & commence the work in time, the EMD/ SD deposited by us will stand forfeited to the BSNL.

2.

b)

The tenderer hereby covenants and declares that: 1. All the information, Documents, Photo copies of the Documents/ Certificates enclosed along with the Tender offer are correct. If anything is found false and/or incorrect and/or reveals any suppression of fact at any time, BSNL reserves the right to debar our tender offer/ cancel the LOA/ Purchase/ work order if issued and forfeit the EMD/ SD/ Bill amount pending with BSNL. In addition, BSNL may debar the contractor from participation in its future tenders.

2.

Date:

Signature of Tenderer Name of Tenderer . Along with date & Seal

Place:

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6 (B) NEAR-RELATIONSHIP CERTIFICATE: (Format of the Certificate to be given as per the clause 34.4 of Section-4 Part-A by the bidder in respect of status of employment of his/ her near relation in BSNL)

The format of the certificate to be given is "I..s/o.r/o..hereby certify that none of my relative(s) as defined in the tender document is/are employed in BSNL unit as per details given in tender document. In case at any stage, it is found that the information given by me is false/ incorrect, BSNL shall have the absolute right to take any action as deemed fit/without any prior intimation to me."

Signature of the tenderer With date and seal

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SECTION- 7 PROFORMAS 7(A) For the BIDSECURITY/ EMD Guarantee (To be typed on Rs.100/- non-judicial stamp paper)

Sub: Bid Security/EMD guarantee. Whereas M/s R/o (Hereafter referred to as Bidder) has approached us for giving Bank Guarantee of Rs. /- (hereafter known as the B. G. Amount) valid up to ..// 20.. (hereafter known as the Validity date) in favour of DGM (MMT) BSNL CO, Delhi (Hereafter referred to as BSNC) for participation in the tender of work of .. vide tender no. . Now at the request of the Bidder, We Bank Branch having . . . (Address) and Regd. office address as ... (Hereinafter called the Bank) agrees to give this guarantee as hereinafter contained: 2. We the Bank do hereby undertake to pay the amounts due and payable under this guarantee without any demur, merely on a demand from the BSNC stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the BSNC by reason of breach by the said bidder(s) of any of terms or conditions contained in the said Agreement or by reason of the bidder (s) failure to perform the said Agreement. Any such demand made on the bank shall be conclusive as regards the amount due and payable by the Bank under this guarantee where the decision of the BSNC in these counts shall be final and binding on the bank. However, our liability under this guarantee shall be restricted to an amount not exceeding the B. G. Amount. 3. We undertake to pay to the BSNC any money so demanded notwithstanding any dispute or disputes raised by the bidder(s) in any suit or proceeding 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 valid discharge of our liability for payment there under and the bidder(s) shall have no claim against us for making such payment. We the Bank further agree that the guarantee herein contained shall remain in
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4.

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full force and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the BSNC under or by virtue of the said Agreement have been fully paid and its claims satisfied or discharged or till BSNC Certifies that the terms and conditions of the said Agreement have been fully and properly carried out by the said bidder(s) and accordingly discharge this guarantee. Unless a demand or claim under this guarantee is made on us in writing or before the expiry of Validity date from the date hereof, we shall be discharged from all liability under this guarantee thereafter. 5. We the Bank further agree with the BSNC that the BSNC shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said Agreement or to extend time of performance by the said bidder(s) from time to time or to postpone for any time or from time to time any of the powers exercisable by the BSNC against the said bidder(s) and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved from our liability by reason of any such variation, or extension being granted to the said Bidder(s) or for any forbearance, act or omission on the part of the BSNC or any indulgence by the BSNC to the said bidder(s) or by any such matter or thing whatsoever which under the law relating to sureties would, but for this provision, have effect of so relieving us. Notwithstanding anything herein contained ; (a) The liability of the Bank under this guarantee is restricted to the B. G. Amount and it will remain in force up to its Validity date specified above. (b) The guarantee shall stand completely discharged and all rights of the BSNC under this Guarantee shall be extinguished if no claim or demand is made on us in writing on or before its validity date. In case BSNC demands for any money under this bank guarantee, the same shall be paid through bankers Cheque in favour of AO (Cash) BSNL CO payable at New Delhi. The Bank guarantees that the below mentioned officer who have signed it on behalf of the Bank have authority to give this guarantee under its delegated power.

6.

7.

8.

Place: Date: .. (Signature of the Bank Officer) Rubber stamp of the bank Authorized Power of Attorney Number: . Name of the Bank officer: .. Designation: Complete Postal address of Bank: Telephone Numbers .. Fax numbers

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7(B)

For the Performance Guarantee (To be typed on Rs.100/- non-judicial stamp paper) Dated:..

Sub: Performance guarantee. Whereas DGM (MM) BSNL CO, Delhi R/o .. ..(hereafter referred to as BSNC) has issued an APO no. ... Dated //20.. awarding the work of .. to M/s .. R/o (hereafter referred to as Bidder) and BSNC has asked him to submit a performance guarantee in favour of DGM(MMT) BSNL CO, Delhi of Rs. ../- (hereafter referred to as P.G. Amount) valid up to //20(hereafter referred to as Validity Date) Now at the request of the Bidder, We Bank Branch having .. . . . (Address) and Regd. office address as ... (Hereinafter called the Bank) agreed to give this guarantee as hereinafter contained: 2. We, the Bank do hereby undertake and assure to the BSNC that if in the opinion of the BSNC, the Bidder has in any way failed to observe or perform the terms and conditions of the said agreement or has committed any breach of its obligations there-under, the Bank shall on demand and without any objection or demur pay to the BSNC the said sum limited to P.G. Amount or such lesser amount as BSNC may demand without requiring BSNC to have recourse to any legal remedy that may be available to it to compel the Bank to pay the same. Any such demand from the BSNC shall be conclusive as regards the liability of Bidder to pay to BSNC or as regards the amount payable by the Bank under this guarantee. The Bank shall not be entitled to withhold payment on the ground that the Bidder had disputed its liability to pay or has disputed the quantum of the amount or that any arbitration proceeding or legal proceeding is pending between Bidder and BSNC regarding the claim. We, the Bank further agree that the guarantee shall come into force from the date of its issue and shall remain in full force and effect up to its Validity date.

3.

4.

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5.

6.

The Bank further agrees that the BSNC shall have the fullest liberty without the consent of the Bank and without affecting in any way the obligations hereunder to vary any of the terms and conditions of the said agreement or to extend the time for performance of the said agreement from any of the powers exercisable by BSNC against the Bidder and to forebear to enforce any of the terms and conditions relating to the said agreement and the Bank shall not be relieved from its liability by reason of such failure or extension being granted to Bidder or through any forbearance, act or omission on the part of BSNC or any indulgence by BSNC to Bidder or any other matter or thing whatsoever which under the law relating to sureties would but for this provision have the effect of relieving or discharging the guarantor. Notwithstanding anything herein contained ; (a) The liability of the Bank under this guarantee is restricted to the P.G. Amount and it will remain in force up to its Validity date. (b) The guarantee shall stand completely discharged and all rights of the BSNC under this Guarantee shall be extinguished if no claim or demand is made on us in writing on or before its validity date.

7.

8.

In case BSNC demands for any money under this bank guarantee, the same shall be paid through bankers Cheque in favour of AO (Cash) BSNL CO payable at New Delhi. The Bank guarantees that the below mentioned officer who have signed it on behalf of the Bank have authority to give this guarantee under its delegated power.

Place:

Date: ..

(Signature of the Bank Officer)

Rubber stamp of the bank Authorized Power of Attorney Number: . Name of the Bank officer: .. Designation: Complete Postal address of Bank: Telephone Numbers .. Fax numbers

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7 (C) For Letter of Authorization for attending Bid Opening Event. (To be typed preferably on letter head of the company) Subject: Authorization for attending Bid opening

I/ We Mr. /Ms. .. have submitted our bid for the tender no. . in respect of .. (Item of work) which is due to open on . (date) in the Meeting Room, O/o .

We hereby authorize Mr. / Ms. & Mr. / Ms. (alternative) whose signatures are attested below, to attend the bid opening for the tender mentioned above on our behalf. . Signature of the Representative Signature of Bidder/ Officer authorized to sign Name of the Representative on behalf of the Bidder . Signature of the alternative Representative .. Name of the alternative Representative

Above Signatures Attested

Note 1: Only one representative will be permitted to attend the Bid opening 2. Permission for entry to the hall where bids are opened may be refused in case authorization as prescribed above is not received.

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7(D)

Model Amendment Letter Intimating Conditions for Extension of Delivery Period (Refer to Appendix (i) to clause 15.3 of Section-5 Part A) Registered A Due

Address of the purchaser --------------------------------------------------------------To M/s ..

Sub: This office contract no.. dated . placed on you for supply of .

Ref :Your letter no dated . We are in receipt of your letter, wherein you have asked for extension/ further extension of time for delivery/ execution/ installation/ commissioning. In view of the circumstances stated in your above referred letter, the time of delivery can be extended from _______ (original/ last delivery period) to ____________ (presently agreed delivery period) subject to your unconditional acceptance of the following terms and conditions: 1. That, liquidated damages shall be levied in accordance with agreed clause 16.2 & 16.3 Section-5 Part A of terms and conditions of the tender/ PO. That, notwithstanding any stipulation in the contract for increase in price on any ground, no such increase, whatsoever, which takes place after current last date of Delivery shall be admissible on such of the said goods as are delivered after the said date as per clause 12 Section-5 Part A. That, the prices during this extended delivery period shall be provisional and shall be governed as per agreed clauses 12 and 24 of Section 5 Part A and shall be finalized in accordance with the current PO price or the current PO price with latest budget/ duty impact or the prices in the new tender (T.E. no. ..) from the date of its opening, on whichever is lower basis. An additional BG of Rs._____in accordance with clause 15.3, SectionPage 96

2.

3.

4.

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5PartA of the contract with validity up to _______. 5. An undertaking as required vide clause 24.3, Section-5A. Otherwise furnish the details as requisite in clause 24.4 section 5 Part A

Please intimate your acceptance of this letter alongwith the additional BG within ten days of the issue of this letter failing which the contract will be cancelled at your risk and expense without any further reference to you. This letter shall form part and parcel of the agreement/ contract/ APO/ PO and all other terms & conditions of the contract remain unaltered.

Yours faithfully,

() for and on behalf of..

Note : The entries which are not applicable for the case under consideration are to be deleted.

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7(E)- Model Amendment Letter for Extension of Delivery Period Appendix (ii) to clause 15.3 of Section-5 Part A

Registered Acknowledgement Due

Address of the purchaser --------------------------------------------------------------To M/s ..

Sub : This office contract no.. dated . placed on you for supply of Ref : 1. 2. 3. Your letter no requesting DP extension dated .

This office letter no. dated intimating conditions for DP extension Your letter no.. dated . accepting the conditions for DP extension

In your above letter under reference (1), you have asked for extension/ further extension of time for delivery/ execution/ installation/ commissioning. The terms and conditions for extension of delivery period were conveyed to you vide this office letter under reference (2). In view of the circumstances stated in your above referred letter, and upon your unconditional acceptance of the terms and conditions of this extension vide your letter under reference (3), the time of delivery is hereby extended from _______ (last delivery period) to ____________ (presently agreed delivery period) on the terms and conditions in letter under reference (2) above and agreed by you vide letter under reference (3) i.e.: (a) Liquidated damages shall be levied in accordance with agreed clause 16.2 & 16.3 Section-5 Part A of terms and conditions of the tender/ PO. Notwithstanding any stipulation in the contract for increase in price on any
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ground, no such increase, whatsoever, which takes place after current last date of Delivery/ completion of work shall be admissible on such of the said goods as are delivered after the said date as per clause 12 Section- 5 Part A. (c) The prices during this extended delivery period shall be governed as per clauses 12 and 24 of Section-5 Part A and shall be finalized in accordance with current PO price or the current PO price with latest budget/ duty impact or the prices in the new tender (T.E. no. ..) from the date of its opening, on whichever is lower basis.

The letters under reference above and this letter shall form part and parcel of agreement/ contract/ APO/ PO and all other terms & conditions of the contract remain unaltered. Yours faithfully,

() for and on behalf of.. Copy to : .. .. .. (All concerned) Note:- The entries which are not applicable for the case under consideration are to be deleted.

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SECTION- 8 Bidders profile & Questionnaire. Tenderer / Bidders Profile & Questionnaire (To be filled in and submitted by the bidder) A) 1. 2. Tenderers Profile Name of the Individual/ Firm:

Present Correspondence Address .. .. .. Telephone No. .. Mobile No. ... FAX No.

3.

Address of place of Works/ Manufacture ... . Telephone No. .... Mobile No.

4. 5.

State the Type of Firm: (Tick the correct choice):

Sole proprietor-ship/partnership firm / Private limited company.

Name of the sole proprietor/ partners/ Director(s) of Pvt. Ltd Co.: S. No. 1. 2. 3. 4. 5. Name Fathers Name Designation

6.

Name of the person authorized to enter into and execute contract/ agreement and the capacity in which he is authorized (in case of partnership/ private Ltd company): .. .

7.

Permanent Account No. :


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8.

Details of the Bidders Bank for effecting e-payments: (a) Beneficiary Bank Name: (b) Beneficiary branch Name:. (c) IFSC code of beneficiary Branch.. (d) Beneficiary account No.:. (e) Branch Serial No. (MICR No.):... Whether the firm has Office/ works (i.e. manufacture of the tendered item) in Delhi? If so state its Address

9.

B)

Questionnaire 1. Do you think any other detail/ material is required to complete the work specified in the specification? Yes/ No. 1.1 If Yes, Give details 2. 2.1 Do you think any other item of work need be included in tender form to complete the work specified in the specification? Yes/ No. If Yes, Give details

3. Kindly indicate the maximum Quantity of tendered material which you are capable of supplying within the scheduled delivery period. Name of the tendered Item Qty that can be supplied by the firm within scheduled delivery period.

4. Suggestion for improvement of the tender document. . . . Place. Signature of contractor Date .
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Name of Contractor
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SECTION-9 Part-A BID FORM To . From, .

<complete address of the purchaser><complete address of the Bidder> .

Bidders Reference No:.... Dated.

Ref: Your Tender Enquiry No. dated

1.

2. 3.

4. 5.

6.

7.

Having examined the above mentioned tender enquiry document including amendment/ clarification/ addenda Nos. ...................... dated .. the receipt of which is hereby duly acknowledged, we, the undersigned, offer to supply and deliver .............................................. in conformity with the said drawings, conditions of contract and specifications for the sum shown in the schedule of prices attached herewith and made part of the financial Bid. Bid submitted by us is properly sealed and prepared so as to prevent any subsequent alteration and replacement. We agree to abide by this Bid for a period of .days from the date fixed for Bid opening or for subsequently extended period, if any, agreed to by us. This bid shall remain binding upon us up to the aforesaid period. We understand that you are not bound to accept the lowest or any bid, you may receive. If our Bid is accepted, we will provide you with a performance guarantee from a Scheduled Bank for a sum @ 5% of the contract value for the due performance of the contract. If our Bid is accepted, we undertake to complete delivery of all the items and perform all the services specified in the contract in accordance with the delivery schedule specified in the Section-2 (Tender Information). Until a formal Purchase Order of Contract is prepared and executed, this Bid together with your written acceptance thereof in your notification of award shall constitute a binding contract between us.

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Dated: ....... day of ................... 20

Signature . Witness Signature. Name .. Address ...................................... Name .. In the capacity of . Duly authorized to sign the bid for and on behalf of ..............................................

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SECTION-9 Part-B Part I - Price Schedule for Indigenous Equipment

Ex-factory Price (Basic Unit Price exclusive of all levies & charges)

Unit Price excluding Duties & Taxes CENVAT able (12-13)

Duties & Taxes CENVAT-able on unit price

Total Price Inclusive of all levies & charges excluding Duties & Taxes (3X14)

Total discounted price excluding Duties & Taxes CENVAT-able (15-16)

Excise Duty

Sales Tax

F.F. Pkg &I

Percentage (%) of Customs duty 20

Other levies & charges, if any

Unit Price (all inclusive (4+6+8+10+11)

Sl. No. 1 2

% 5

Amt 6

% 7

Amt 8

% 9

Amt 10

11

12

13

14

15

16

17

18

19

21

Note : 1. We hereby declare that in quoting the above prices, we have taken into account the entire credit on inputs available under the MODVAT SCHEME introduced w.e.f. 1st March 1986 and further extended on more items till date. 2. If Annual maintenance Contract charges are required to be quoted as per SOR, basic charges should be shown in column-4 & the service tax in column 11 & 13. 3. We hereby certify that E.D/Customs Tariff Head shown in column 18/21 are correct & CENVAT Credit for the amount shown in column 13 above are admissible as per CENVAT Credit Rules 2004. 4. The bidder shall quote separately for hardware and software as per special conditions of contract. 5. The bidder submitted the offer with concessional E.D/sales tax shall submit the proof of applicable concessional ED/Sales Tax.
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Customs Tariff Head

Discount offered, if any

E.D. Tariff Head

Item description

Import content

Total Qty..

Part II - Price Schedule for Imported Equipment


Total discounted price excluding Duties & Taxes CENVAT-able (15-16) 17 Duties & Taxes CENVAT-able on unit price

Unit Price excluding Duties & Taxes CENVAT able (12-13)

Price per Unit for site (all inclusive) (4B+6+8+10+11)

Total Price Inclusive of all levies & charges excluding Duties & Taxes (3X14)

Ex-factory Price (Basic Unit Price exclusive of all levies & charges)

Other levies & charges, if any

Discount offered, if any

Unit price per Unit CIF

Item description

Custom Duty

Sales Tax

Pkg & Inland freight

Sl. No. 1 2

% 5

Amt 6

% 7

Amt 8

% 9

Amt 10

4A

4B

11

12

13

14

15

16

18

Note : 1. We hereby declare that in quoting the above prices, we have taken into account the entire credit on inputs available under the MODVAT SCHEME introduced w.e.f. 1st March 1986 and further extended on more items till date. 2. If Annual maintenance Contract charges are required to be quoted as per SOR, basic charges should be shown in column-4B & the service tax in column 11 & 13. 3. We hereby certify that E.D/Customs Tariff Head shown in column 18 are correct & CENVAT Credit for the amount shown in column 13 above are admissible as per CENVAT Credit Rules 2004. 4. The bidder shall quote separately for hardware and software as per special conditions of contract. 5. The bidder submitted the offer with concessional E.D/sales tax shall submit the proof of applicable concessional ED/Sales Tax

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Customs Tariff Head

Total Qty.

CHAPTER - 5 5. 5.1 BID BOND GAURANTEE OR EARNEST MONEY DEPOSIT (EMD) Purpose The Bid Bond Guarantee also known as Earnest Money Deposit (EMD) or Earnest Money Bank Guarantee (EMBG).The purpose of EMD is to get a commitment by the Bidder to honour its bid during the bid validity period. Value The value of EMD will be @ 2% of the total estimated cost of the equipment/ stores including services proposed to be procured in the tender subject to a maximum of Rupees Two Crore. Validity Period The validity period of the EMBG should be 30 days beyond the Bid validity i.e. n+ 30 days, where n is number of days in validity period of offer e.g. 150 +30 = 180 days, if the bid validity period is 150 days. Extension of Validity Period In case, where BSNL finds that it is not able to place Advance Purchase Order within the validity period of the bid, BSNL can request all bidders to extend the validity of their respective bids and the EMBGs by a reasonable period. In such cases, extension of validity of Bid Security Bond by 30 days beyond the extended validity date of bids should also be asked for. While BSNL can make the request for extension, the bidder is free to either extend the validity or refuse the request to extend the Validity.

5.2

5.3

5.4

5.5 Release of EMD 5.5.1 EMD of all unsuccessful Bidders should be released on placement of Purchase Order (PO) on the successful bidders. This should be done within one week of release of Purchase Order(s). 5.5.2 In case of successful Bidders, the EMBG shall be released on receipt of their acceptance of Advance Purchase Order and furnishing the performance security. 5.5.3 Where BSNL requests the Bidder to extend the validity of the Bid beyond the stipulated period given in the Bid documents, and the bidder refuses to extend the validity of its bid, the EMD of such Bidders shall be returned forthwith. In such cases, the bidder shall not be considered for further evaluation or ordering.

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5.6 Encashment of EMD 5.6.1 EMD of a bidder shall be forfeited, if the bidder withdraws or amends its bid or impairs or derogates from the bid in any respect during the period of bid validity specified by the bidder on the Bid Form or extended subsequently. 5.6.2 When BSNL places an Advance Purchase Order on the successful bidder on its quoted price and the bidder refuses to accept it within the scheduled period as stated in APO, EMD shall be forfeited. 5.6.3 The decision of BSNL in this regard will be final & binding. 5.7 Acceptable forms of EMD The EMD should be in the form of a Bank Guarantee drawn from a scheduled bank in favour of BSNL. EMD in the form of Account Payee Demand Draft, Fixed Deposit Receipt or Bankers Cheque, safeguarding the purchasers interest in all respects, shall also be acceptable. However, no interest shall be payable on EMD received in form of DD/ bankers cheque. Proforma for EMBG A Proforma for obtaining EMBG is provided at Section-7 (A) of Chapter 4 (Standard Tender Enquiry Document). Verification of the EMBG EMBG submitted by the bidders must be immediately verified from the issuing Bank before acceptance. EMBG Register A record of all EMBGs should be kept in EMBG Register in standard format given below. The register should be scrutinized monthly to ensure currency of validity of Bids, extensions asked and acceded by Bidders, Bid encashed, Bid refunded etc. Name Bid Amount Name of Date of the Bond/ of Bid the Bidder EMBG Bond Banker Number Of Opening Valid up to Extension asked for Returned to the Bidder Extended

5.8

5.9

5.10

Encashme nt where Resorted

***

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CHAPTER - 6 6 6.1 OPENING OF BIDS Opening of bids The guidelines for conducting the opening of bids and the various steps to be taken by the tender opening committee are given in this chapter. The bid opening is an important occasion when all the bidders, who have participated in the tender, assemble, their bids opened formally in their presence and certain information are read out in this open session. Proper bid opening procedure ensures an impartial and fair approach to all bidders so that complaints on this account do not arise. The various steps to ensure these are now described.

6.2 Formation of Bid opening committee 6.2.1 Since bid opening is an important responsibility, it is necessary that a bid opening team be formed formally. It is recommended that composition of the bid opening team be as follows : Chairman of the Bid Other members of the bid opening committee opening Committee Divisional Engr. or Asstt. Engineer or equivalent+ Accounts officer+ Equivalent One Dealing Asstt. Note:-However, in case of SSAs headed TDEs, the TOC shall be headed by SDE Level officer and member from finance will be of AO/JAO level. 6.2.2 Proposal for formation of bid opening committee would be approved by the DGM in-charge of the tendering, well in advance of the bid opening. Any change in the constitution of the Committee would need the approval of GM in-charge of the tendering. The officer nominated for the bid opening shall be preferably different from the officers who have to process the procurement case. 6.3 Preparations by the Bid Opening Committee. The Bid Opening committee should equip itself adequately in advance, to enable it to carry out its function efficiently during bid opening. These advance preparation would comprise of the following : a) Preparing Attendance Register for recording attendance of Bidders. b) Taking list of bidders who have purchased the bid documents from Tendering section. c) Providing adequate number of persons for shifting the documents from the point of acceptance to the bid opening venue. d) Ensuring security at the bid opening venue. e) Making adequate arrangements for issue of passes to enable smooth
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f) g) h) i) j)

entry of the bidders to the bid opening venue. Ensuring provision of public address system to enable the bidders to hear information being read out. Making suitable sealing arrangements Making suitable arrangement for receipt, recording and stocking of the documents. Preparing formats in advance for recording information to be read out at the time of opening of Bids and preparing its minutes. Preparing direction pointers, notice etc. for display at prominent location to guide bidders to Bid Opening venue.

6.4

Venue The Bid Opening would generally be conducted in a hall, which can accommodate comfortably, BSNL officers forming the Bid opening Team as well as bidders, who participate in the tender. The venue should preferably have an ante-room where the authorization letter & number verified before the bidders are formally allowed entry into the bid opening hall. Essential Requirements to enable a Bidder to Participate in Bid Opening The participation of bidders in bid opening would be restricted to those Bidder, who fulfill all the following conditions: a) Representative of Bidders, who have been authorized in writing by their principals to participate in the bid opening and possess such letters of authorization in original. b) Bidders who claim to have submitted their bids subject to limit of 2 persons per firm. c) Bidders who have either purchased the bid document or claim to have downloaded the bid documents from BSNL site. Those, who do not meet the above conditions would be deemed to be unauthorized and would not be allowed to enter the Bid Opening Venue and participate in the bid opening.

6.5

6.6 Bid Opening Process 6.6.1 The Bid opening process should start at the time/date given in the NIT. The bidder would be asked to enter the ante room first, produce their letters of authorization to enable them to participate in the bid opening. Suitable entries shall be made in the Attendance Register along with the signature of the authorized participating bidders. 6.6.2 For the bidders who submit their bids earlier to the date of bid opening, bids having letter of authorization for submission of the bids and the bids themselves being submitted as required by the bid documents, would be accepted by the Section Officer(MMT), Tendering section and a receipt to
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this effect issued by him to the bidder. In case such bidders wish to participate in the Bid Opening, the production of this receipt along with the authorization for the participation in the bid would enable the Bid Opening Officer to issue a pass to the Bidders to enable him to participate. In such cases, it is the responsibility of the Bid Opening Officer to ensure that such bids are available, suitably numbered, at the Bid Opening Venue at the time of Bid Opening. Any bids submitted after the due time as per NIT would be returned unopened by the Bid Opening Officer. 6.6.3 In case of e-tendering please refer Section 4 Part C of Chapter 4. 6.7 Information to be read out in Bid Opening for Manual Bidding process. 6.7.1 Kindly follow instructions stated in clause 19.3 of section4PartA (General Instructions to Bidders). 6.7.1 The Bid Opening Official should politely and firmly turn down queries of any other nature from any bidder. No argument should be entertained on this account by the Bid Opening Officer. 6.7.2 Actual process of Opening of Bids should start only after all the received bids shifted to the Bid Opening Hall under supervision and responsibility of Bid Opening Officer. All the received bids should be arranged in alphabetical order as per the name of the firm submitting the bids & thereafter numerically counted & numbered viz.1/n,2/n.n/n where n is the no. of total bids received in the tender, entered in the Bid Opening Register. Where the response to the tender is very extensive, the Bid opening Officer may restrict entry to the venue to only one representative per bidder. 6.7.3 At the start of the Bid Opening and prior to opening the first bid, the Bid Opening officer should clearly state the information which will be read out by him. 6.7.4 Bids should be opened in the numerical numbering. The Bid Opening Officer should display the intactness of the seal of the bid being opened, prior to opening it, to all the participants, record this and initial this entry and should thereafter open the Bid. He should check up and ensure that the original bid its mode of submission are as per the Bid Documents. After opening the Bids, he should read out the information as given in clause 19.3(iii &iv) of Section4 Part A (GIB) from the original copy of the bid, record the information read out in the appropriate format, encircle the entries in the Bid in red ink and initial these in the Bid before proceeding to the next item of the Tender. 6.7.5 The bid opening committee shall record in its report itself if bid security is not submitted as per clause 12.1 & 12.3 of Section-4 Part A of the Bid Document or bid validity is less than the time prescribed in clause 13.1, Section-4 Part A of the Bid Document. 6.7.6 In case of e-tendering process please refer Section 4 Part C of Chapter 4.

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6.8 Report of the Bid opening Committee 6.8.1 In all cases, it should be ensured that the bid opening is completed on the same calendar day. The bid opening committee would be responsible for preparation of its report on the same day of the bid opening or maximum the next day to the bid opening, in case the bid opening drags on well beyond the closing hours of the office. 6.8.2 The bid opening reports should comprise of the following : a) List of participants who attended the bid opening. b) Report on the bid opening duly prepared by the bid opening official and signed by him along with other members of the bid opening team certifying that only those bidders who were eligible to participate, were allowed to participate. c) Information regarding item read out. d) Submission of Bid documents, bidder-wise were as per Bid conditions to be indicated. e) Statement that all steps taken to preserve the sanctity of the Bids. f) Certificate regarding proper storage of Bids, after the Bid opening, in secured area. 6.8.3 Submission of Bid Opening Report The Bid Opening Committee should submit the report of the Bid Opening, duly signed by all members of the Bid Opening Committee to the Director in charge of tendering for information, record and follow up action. 6.9 Making Over of Bids 6.9.1 The Bid Opening Committee should make over the complete set of the bids along with the report of the bid opening and other documents after the opening of the bids to all the members of the Committee for Evaluation of Tender (CET). 6.9.2 In case of e-tendering the CET members should be authorized for online access of bids subsequent to the closing of Tender Opening Event. ***

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CHAPTER - 7 7 FORMATION OF COMMITTEE FOR EVALUTION OF TENDER/ EOI (CET) 7.1 Formation of Committees for Evaluation of Tender 7.1.1 Tenders are evaluated by a Committee called Committee for Evaluation of Tender. Its formation and constitution is covered in this chapter. The Committee for Evaluation of Tender (CET) is constituted for the evaluation of each and every tender. This duly constituted CET evaluates the tender as per the terms and conditions and other clauses stipulated in the tender document. The Committee submits its recommendations in the form of a report. This report is thereafter examined by the procurement branch of the BSNL. The proposals emerging out of the recommendations of the Committee for Evaluation of Tender are submitted to the competent authority for approval. 7.1.2 Each tender is evaluated by a Committee for Evaluation of Tender set up for this purpose. The formation of the Committee is proposed by the MM branch and approved by the concerned Director of BSNL Board. In case of tenders issued by field units, the CET would be approved by the tender approving authority. Formation of the CET should be done well in advance of the opening of the Bids. 7.2 Constitution of CET 7.2.1 A Committee for Evaluation of Tender basically comprises of three members representing the Planning/ User, MM and Finance Wings, so that bids could be evaluated technically, commercially and financially. In addition, when the item is likely to have impact on the quality of service, a member from the Operations/ QA Branch may be included. 7.2.2 The Technical Member would be from the concerned User Wing and who would be generally the chairman/ convener and who would have the prime responsibility for preparation of the report. 7.2.3 The commercial member would be from the MM Cell. 7.2.4 The Finance member would be from Finance Cell. Technical User (Planning/ Operations/ Marketing/ Admin/ Service/ Technology, etc) cell MM Cell Finance Cell Chairman/ Member-cum-Convener

Commercial Finance

Member Member

7.2.5 In addition depending upon the nature of the tender, officer(s) from Operation Branch/ any other related branches could also be co-opted as part of the Committee for Evaluation of Tender.
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7.3

Level of Committee for Evaluation of Tender The level of the Committee members for Evaluation of Tender depends upon the value of the Tender. The levels for different value are given below : Value of the Tender Members Technical Commercial Finance Up to Rs 10 Crores DGM AGM AGM > Rs 10 Cr & up to Rs 50 Cr DGM DGM DGM >Rs 50 Cr & upto Rs 100 Cr PGM / GM DGM DGM > Rs 100 Cr PGM / GM PGM / GM PGM / GM Working Groups For the Purpose of evaluating complex telecommunication system or those costing more than 100 Crores, it may be necessary to provide the main Committee for Evaluation of Tender with the assistance of the Technical Working Group, Commercial and Finance Working Groups. Such Tenders are high value Tenders, where the Evaluation Committee level would be at GM and above. The Working Groups or sub-committee would be at DGM level. The setting up of such Groups/ sub- committee would require approval of the concerned Director of BSNL Board. However, the necessity of forming such Groups should be decided by the Committee for Evaluation of Tender. ***

7.4

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CHAPTER - 8 8 GUIDELINES TO COMMITTEE FOR EVALUATION OF TENDER/ EOI (CET) 8.1 Introduction 8.1.1 The Guidelines provide broad procedures to enable the evaluation process. Correct evaluation decision will continue to depend upon the experience and good judgment of those who are responsible for evaluation. 8.1.2 The following document should be handed over to the CET members by MM Cell : a) All bids accepted at the time of bid opening. b) Bid document along with technical specification(s). c) Guidelines for CET. d) Minutes of the bid opening, if any. 8.1.3 The above document should be received by CET members personally. 8.1.4 Wherever there is any variation between the Technical Compliance Statement and the Drawings/ Literature attached in support of or merely with Technical Compliance Statement the bidders should be asked to clarify/confirm specifically the technical compliance. In cases where offered product is under-provided the CET should load the quoted price appropriately so as to bring it to the desired level of technical compliance. 8.1.5 Determination of the bid's responsiveness is to be based on the contents of the bid itself without recourse to extrinsic evidence. Queries to or from bidders should generally be avoided. However it may be resorted if found necessary to remove any ambiguity, doubt and to bring clarity in the process. 8.1.6 Any document which has an impact on price of the bidders and which is submitted by the bidder after opening of the tenders should not be considered and should be ignored. 8.1.7 Only responsive bids should be evaluated in detail. A responsive bid is a bid which satisfies following conditions of the bid documents : a) It meets all the major technical clauses. b) It meets commercial clauses. c) The offer is accompanied by a bid security deposit on the prescribed proforma as indicated in the bid document and valid for 30 days beyond the validity of the bid. 8.1.8 The CET should hold a preliminary meeting within one week of handing over of the tender Documents. The activity as per 8.2.1, 8.2.2 and 8.3 below should commence immediately. The Convener of the CET may coordinate to ensure that the statements relating to 8.2.1, 8.2.2 and 8.3 are handed over to the Finance representative so that finance vetting can start. 8.1.9 In order to help the Committee for Evaluation of Tender to formulate its recommendations within a reasonable time frame the following allocation of responsibilities for different actions is indicated herein.

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8.2 Technical Evaluation 8.2.1 The technical evaluation and preparation of comparative statement of value of bids is to be carried out by the technical branch representative(s) in the CET. The technical comparative assessment of the material list as per un-priced BOM is required to be done along with the corresponding prices to be taken for evaluation. 8.2.2 Vetting of such comparative list will be done by the Finance representative in the CET. 8.3 Commercial Evaluation 8.3.1 The commercial evaluation is to be carried out by the MM Cell representative in CET and vetted by the Finance representative. 8.3.2 Vetting of the comparative statements of bids and commercial evaluation statement is to be done by the Finance representative in the CET. 8.4 Framing the CET Recommendations 8.4.1 Once finally vetted statements become available (within per-determined time frame), CET may finalize its recommendations within further TEN days. 8.4.2 In case the committee has listed out major technical and commercial conditions as evaluation criteria, the same should be clearly indicated in the report. 8.4.3 The CET should clearly spell out its clear recommendations in its report about technically acceptable bids, listed in an order starting from the lowest technically acceptable bid(L-1) upwards or as per vendor rating starting from V-1. The report should contain complete technical, commercial and financial appraisal, the logic leading to the recommendations themselves and reason for rejecting bids lower than the lowest technically acceptable bids. 8.5 Reasonableness of Prices 8.5.1 After consideration of all the above aspects the CET shall determine the ordering price of the equipment and take into consideration the reasonableness of this price. The procurement is to be done on reasonable rates. The reasonableness of the rates obtained in the tenders shall be assessed by comparing with the rates of previous procurement and also current market trend for the same. 8.5.2 In order to have consistency and transparency while evaluating the tender price, the CET in its report should record the reasons for accepting or rejecting previous tender prices for similar items. 8.6 Negotiations with L1 bidder 8.6.1 As post tender negotiations could often be a source of corruption, it is directed that there should be no post-tender negotiations with L-1, except in certain exceptional situations. Such exceptional situations would include
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procurement of proprietary items, items with limited sources of supply and items where there is suspicion of a cartel formation. The justification and details of such negotiations should be duly recorded and documented without any loss of time. 8.6.2 In cases where a decision is taken to go for re-tendering due to the unreasonableness of the quoted rates, but the requirements are urgent and a re-tender for the entire requirement would delay the availability of the item, thus jeopardizing the essential operations, maintenance and safety, negotiations would be permitted with L-1 bidder(s) for the supply of a bare minimum quantity. The balance quantity should, however, be procured expeditiously through a re-tender, following the normal tendering process. 8.6.3 Counter-offers to L-1 in order to arrive at an acceptable price, shall amount to negotiations. However, any counter-offer thereafter L-2, L-3 etc. (at the rates accepted by L-1) in case of splitting of quantities, as pre-disclosed in the tender, shall not be deemed to be a negotiation. 8.6.4 It is reiterated that in case L-1 backs-out, there should be a re-tender. 8.7 Distribution of the tendered quantities amongst the various suppliers:8.7.1 The tender shall be evaluated for the quantities indicated in the schedule of requirements. In normal purchase procedure, the orders will go in favour of the lowest acceptable bidder for the full quantity. Apportioning the quantities may arise due to certain limitations or considerations. As most of the items procured by BSNL are specialized products it becomes necessary to sustain multiple vendors/suppliers through distribution of quantities. 8.7.2 The total quantity of the order should be distributed amongst different bidders who meet the technical and commercial specifications when such distribution is in the long term interest of the BSNL. It is desirable that the BSNL sustains multiple vendors through distribution of order to promote competition as in most of the cases the BSNL may be the sole user of such equipment/materials. 8.7.3 It may not be practicable to distribute the orders to all the bidders who meet the technical specifications and commercial conditions, as in some case the quantity ordered on each supplier will be too small to be viable, both for supply and use by the BSNL. The distribution of orders therefore should normally be restricted to the bidders who are within 50 to 60% of the lowest bid. It is, however, to be conceded that where the quantity to be ordered is very large or very small the number of bidders to be accommodated may have to be worked out differently. 8.7.4 The quantity to be allocated to L-1 and number of suppliers on whom orders shall be placed would be specified in the tender document. The CET thus should act as per these guidelines for distribution of the quantities amongst the various eligible suppliers. 8.7.5 In case no mention is made in the documents then, it should be in the inverse
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ratio of their evaluated prices / quotation. This will ensure that there is incentive for the bidders to quote their lowest price from tender to tender. While deciding the quantities technical feasibility of distribution and the capability of each of the supplier has to be kept in view. 8.7.6 All the bidders should be offered uniform price for supply. 8.8 Miscellaneous Guidelines 8.8.1 The recommendations of the Committee for Evaluation of Tender are essentially internal document. Final decisions are taken by the competent authority on the basis of CET recommendation. The confidentiality of the CET document from outsider is, therefore, to be maintained. No information to substance, examination, clarification or evaluation of bids and recommendations should be communicated to persons other than those officially concerned. 8.8.2 All the pages and enclosures of the CET report should be numbered consecutively and signed by all CET members. 8.8.3 The CET recommendations in duplicate should be received in MM Cell within 4 to 6 weeks of handing over the documents to the CET members. The responsibility for ensuring this vests with Chairman / Convener of the CET. 8.8.4 If CET needs additional time to complete the work, permission of extension may be obtained from the concerned Director, or, in case of field units, by the tender approving authority, by the Chairman/ Convener of the CET specifically indicating the reason for the same. Permission of extension, if granted, may be intimated to MM Cell for the purpose of record and taking further suitable action. 8.8.5 The meetings of Committee for Evaluation of Tender should be fixed with prior consultation with its members. They should be contacted on telephone as well. If any of the members appointed to the committee for tender evaluation fails to attend the meetings for more than one occasion consecutively the Chairman/ Convener of CET should bring it to the notice of concerned Director or the tender approving authority. 8.8.6 THE TENDER EVALUATION REPORT SHOULD CLEARLY INDICATE DEVIATIONS RECOMMENDED VIS-A-VIS TENDER CONDITIONS ALONGWITH REASONS FOR SUCH DEVIATIONS. WHEN THERE ARE NO DEVIATIONS FROM TENDER CONDITIONS, A DECLARATION TO THIS EFFECT SHOULD BE INCLUDED IN THE REPORT OF THE RECOMMENDATIONS OF TENDER EVALUATION COMMITTEE.

*** [Hint: Normally package discipline will be followed for evaluation of the bids.]

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CHAPTER - 9 9 ACCEPTANCE OF EVALUATION REPORTS AND FRAMING OF PURCHASE PROPOSALS 9.1 Purchase Proposal 9.1.1 The Chairman/Convener of the Committee for Evaluation of Tender should formally submit the report of the committee to the MM Branch. 9.1.2 Within 7 days of the receipt of Report, MM Branch should put up the purchase proposal for according administrative approval along with a self-contained note comprising of the following : a) Brief background b) Salient features of the tender giving description of the equipment, quantities and composition of the CET, dates of NIT, Bid Openingand Receipt of evaluation committee Report. c) Summary of the recommendations of the CET report. d) Confirmation regarding validity of the bids. e) Comments of MM Cell on the recommendations of the CET. f) Deviations/ short-comings etc, if any, mentioned by the CET g) Formal purchase proposal giving the justification, ordering quantities bidder-wise, unit rates, total rates, discount if any, counter-offer if proposed, financial implication of the proposal, advances, if payable, Bank Guarantee proposed, consignee & paying authority. The purchase proposals should be based on the quantities, distribution and price as given in the Committee for Evaluation of Tender Report and incorporating the comments of MM Cell. 9.1.3 The proposal would be sent to the competent authority(s). 9.1.4 Negotiations should not be allowed to be misused as a tool for bargaining with L-1 with dubious intensions or lead to delays in decision-making. Convincing reasons must be recorded by the authority recommending negotiations. 9.1.5 Competent authority should exercise due diligence while accepting a tender or ordering negotiations or calling for a re-tendering and a definite timeframe should be indicated so that the time taken for according requisite approvals for the entire process of award of tenders does not exceed one month from the date of submission of recommendations. In cases where the proposal is to be approved at higher level, a maximum of 15 days should be assigned for clearance at each level. In no case should the overall timeframes exceed the validity period of the tender and it should be ensured that tenders are invariably finalized within their validity period. 9.2 Distribution of Quantities amongst successful bidders 9.2.1 Distribution of quantities for ordering to the selected bidders of a tender should be as follows:
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9.2.2 The Purchaser intends to limit the number of technically and commercially responsive ..(N) bidders from the list of such bidders arranged in increasing order of their evaluated prices starting from the lowest for the purpose of ordering against this tender. The distribution of the quantity shall be as per clause 3(Distribution of Quantity) of Section 4 Part B. 9.2.3 In the event of any of the eligible bidder(s) not agreeing to supply the equipment or not being considered by BSNL for ordering the equipment, inter-se ranking of the bidders below the aforesaid bidder(s) will be recast to fill up the vacated slot(s). This will be done to ensure that the number of bidders on which order for supply of equipment to be placed remains same as specified in the tender. 9.3 Check-List for Requisition of Material before placing Purchase Orders 9.3.1 While the Purchase Proposal is under approval, MM Cell should request the user section to furnish the details required for incorporating in the APOs/ POs. Following information is to be given by the user section before placement of Purchase Orders: S. No. Item Status (Y/N) 1 Sanction particulars of P/E with date of Sanction 2 Head of Account 3 Particulars of Paying Authority 4 Full details of Consignee/ ultimate Consignee with complete address and Pin Code 5 Detailed Material List clearly indicating the Quantity 6 Certificate regarding availability of Funds 7 Circle-wise/ SSA-wise distribution of quantities This issues with the Approval of PGM ( User Unit ) / GM ( )/concerned head of

(signature) AGM ( )/ DGM ( ) User Section 9.3.2 Incomplete requisitions not containing above data will be returned forthwith. 9.3.3 This checklist duly filled in and approved by the concerned PGM/ GM/ concerned head of User Unit should be signed by an officer not lower than AGM and submitted along with the Requisition by concerned User Branch.

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CHAPTER 10

10 PERFORMANCE BANK GUARANTEE 10.1 Purpose Performance Bank Guarantees are obtained from suppliers to ensure performance of the contract as specified in the purchase order including warranty for satisfactory working of the equipment and stores during the warranty period. This also serves to cover the risk of the BSNL during the performance of the contract.

10.2

When Required After a tender has been evaluated and the purchase proposal of the BSNL to place orders on the bidders has been approved by the competent authority, a formal letter of intent(Advance Purchase Order) is placed on the supplier. The supplier is required to furnish bank guarantee for an amount equal to 5% of the value of Advance purchase order from a Nationalized/ Scheduled Bank in a standard format within two weeks from the date of issue of letter of intent. The acceptance of the letter of intent by the supplier as well as furnishing of the Bank Guarantee would result in the issue of formal purchase orders. 10.3 Validity of Performance Security 10.3.1 The validity period of Performance Security in the form of Performance Bank Guarantee should be in proportion to the delivery period as per the details given below : S. No. Delivery Period Validity Period of Performance BG 1. Up to 6 months 2 Years 2. 6 months to 1 year 2 years and 6 months 3. More than 1 year 3 years 10.3.2 However, in no case the validity period of the PBG should be less than the period by which all the contractual obligations of the bidders in the respective tenders are likely to be fulfilled. 10.3.3 BSNL may ask for extension(s) of the validity period till the time all contractual obligations have been satisfactorily performed by the supplier. 10.4 Action to be taken on Receipt of Bank Guarantee from the Supplier 10.4.1 Examination for Accuracy: The first action to be taken on receipt of bank guarantee from the supplier is to examine the genuineness of the bank guarantee in the light of standard format prescribed as well as a formal check with the bank. 10.4.2 Acceptance of Bank Guarantee: Acceptance of Bank Guarantee is issued to the concerned bank after its genuineness has been examined and entries made in the Register. The acceptance letter is issued to the concerned bank with a copy to the supplier.
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10.4.3 Entry in Bank Guarantee Register: After the genuineness has been established, it is entered in the Bank Guarantee Review Register with reference to the amount and the date of validity supplier-wise. The format of the register is enclosed. The entry of the bank Guarantee in the Register is done in the space allocated to the month and year on which it expires and not the month and year of the issue of the Bank Guarantee i.e. entries in the register indicate expiry date of the bank guarantee, thereby enabling them to be monitored in case renewals are required. 10.4.4 Periodic Monitoring of Register: A periodic monitoring of the status of the validity of the bank guarantee vis--vis the performance of the supplier against the contract is necessary to ensure that the bank guarantee is available to BSNL, if required. 10.5 Importance of Bank Guarantee Register Bank Guarantees are one of the remedies available to the BSNL for covering risk during the performance of the contract. It is therefore necessary that bank guarantee be properly entered in the register and monitored so that these remedies are available. Monthly checks of all the pending bank guarantees which expire in the next three months are necessary. All bank guarantees which are likely to expire during the next three months, should be followed up with regard to the performance of the supplier against the contract. In case the supplier has satisfactorily performed this contract, then no further action will be taken. However, in case the supplier has not performed satisfactorily, then it would be necessary to ask for an extension of validity of bank guarantee for a further period of 3 months to 1 year so that these remedies would continue to be available to the BSNL. Therefore, when the monthly check-up of the bank guarantee register is carried out, the bank guarantees likely to expire in the next three months needs to be separated out in two categories viz. a) which are by and large OK and b) where extensions need to be asked for immediately.

10.6 Extension of Bank Guarantee 10.6.1 If extension of the Bank Guarantee is required then the supplier should be intimated at least two months before the expiry date for furnishing the extension well in time. If extension is not received 15 days before the expiry of the Bank Guarantee, then a formal letter should be issued to the bank asking for revocation unless the Bank Guarantee is extended as per BSNL requirements. If the Bank Guarantee is not extended then it should be encashed as per para10.9.2. 10.6.2 It should be ensured that the Bank Guarantee is not allowed to expire in any circumstances.

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10.7

Operation of the Set-off Clause Till now the suppliers are being asked to furnish bank guarantee for each purchase order. At present, there is no practice for an omnibus bank guarantee, covering say one year. In order to cover risk element, the purchase order should contain a set-off clause which will enable BSNL to encash any bank guarantees against any other purchase order given by the same supplier. Therefore, it is prudent to keep all the bank guarantees of a supplier recorded at the same place in the register so that the operation in the set-off clause wherever felt necessary could be under taken without any problem. Release of Bank Guarantee Before bank guarantee is released, it should be ensured that the equipment has been taken over satisfactorily by BSNL, no claim is pending against the supplier and that the equipment are working satisfactorily during warranty period. The combination of "taken over" certificate and "no claim" certificate will lead to release of the bank guarantee to the supplier.

10.8

10.9 Encashment of Bank Guarantee 10.9.1 This is resorted to where the supplier fails to honour its contractual obligations. The precaution to be taken is to ensure that the bank guarantee is still valid. A formal letter to the bank giving particulars of the guarantee number asking for revocation of the Bank guarantee in favor of the BSNL, needs to be issued. 10.9.2 Even in case where BSNL has asked for extension well in advance, the extension has not been given by the bank, then it is within the rights of the BSNL to encash the bank guarantee just prior to the date of expiry and the bank is bound to honour this revocation. 10.10 Acceptable Forms of Performance Security The Performance Security should be in the form of a Bank Guarantee issued by a scheduled bank in favour of BSNL. Performance security in the form of Account Payee Demand Draft, Fixed Deposit Receipt or Bankers Cheque, safeguarding the purchasers interest in all respects, shall also be acceptable. However no interest shall be payable on this account. 10.11 Format of Performance Security (PBG) A model format of Performance Bank Guarantee is provided at Section-IX of Chapter 4(Standard Tender Enquiry Document). 10.12 Verification of the Bank Guarantees Bank Guarantees submitted by the bidders as Performance security or additional bank guarantee must be immediately verified from the issuing Bank before acceptance
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11 11.1

CHAPTER - 11 ADVANCE PURCHASE ORDER

Purpose The purpose of the Advance Purchase Order (APO) is to formally intimate the successful bidder/bidders of the intention of the BSNL to procure the equipment. 11.2 Contents The APO shall contain the following information : a) File number, date and reference of Tender Enquiry No. and submitted bid reference No., etc. b) Equipment to be procured with quantities/price. c) Technical Specifications d) Commercial conditions governing the contract. e) Finance aspects such as advance payable (if any), amount of Performance Bank Guarantee along with format of the Bank Guarantee. f) Delivery Schedule. g) Period within which the Bidder has to confirm acceptance to the APO along with the performance bank guarantee. h) Annexures comprising Sections-3 Part B , 5 Part A, 5 Part B of the bid document, AMC draft, scope of work, detailed bill of material, make-model list, etc 11.3 Format Format of an APO is given below for ready reference.

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ADVANCE PURCHASE ORDER FORMAT Bharat Sanchar Nigam Ltd. (A Govt. of India Enterprise) [Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath New Delhi - 110 001 (MM Section) File No Dated APO NO: To, <complete address of the Vendor> Subject: Placement of Advance Purchase of . Order for supply

Reference: (i) This office T.E. NoDated (ii) Reference of clarifications issued update (iii)Your Bid Ref. No Dated .. Dear Sir, On behalf of BSNL, an Advance Purchase Order (APO) is hereby placed on you for the supply of .. as per the technical specifications, commercial & special terms & conditions of the tender under reference. The APO is likely to be converted into detailed Purchase Order after receipt of your unconditional / unequivocal acceptance to this APO along with PBG for an amount of Rs.. The Bank Guarantee to be furnished should be strictly in BSNL format issued by an Indian Nationalized/ Scheduled Bank. The Bank Guarantee should be valid for a minimum period of.. and may be submitted in duplicate (one original copy & one photo copy). This APO is governed by the General (Commercial) Conditions of Contract (Attached as Annex-A), Special (Commercial) Conditions of Contract (Attached as Annex-B) and the Special (Technical) Conditions and Technical Specifications (Attached as Annex-C). The subject APO is being placed on following terms & conditions. 1. Conversion of the APO into Purchase Order The APO is likely to be converted into detailed Purchase Order (PO) after receipt of your unconditional/ unequivocal acceptance of this APO along with Performance Bank Guarantee (PBG) for an amount of Rs with all other documents and information as called for in this APO. The PBG to be furnished should be issued by a Nationalized/Scheduled Bank and strictly in accordance with the BSNL format .

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2 3.

Quantity .. Prices The supply shall be governed at unit prices on all inclusive basis i.e. Excise Duty, Sales Tax, packing, freight, forwarding, insurance etc but excluding octroi/ entry tax which shall be paid extra as per actuals, wherever applicable. The price shall further be governed in accordance with clause No.12 and 24 of Section-III of Bid-document. The detailed prices are given below:

Sl. Ite No m

Qty. Basic Excis Nos. unit e duty price % Rs. Rs.

Sales tax % Rs.

F&F pkg & insur % Rs.

Unit price all inclusiv e Rs.

Unit CENV AT Rs.

Unit price excluding Cenvat Rs.

4. Delivery Period 4.1 . (The detailed month wise-supply schedule shall be mentioned) (installation commissioning period, if any shall be mentioned). 4. 2 The equipment supplied will be strictly in accordance with the specifications laid down by the BSNL. The supply shall be made only after QA (BSNL) have carried out necessary inspection/testing and approved the equipment for supply to BSNL. 5. 5.1 5.2 5.3 Payment terms The payment schedule will be as under (The payment schedule shall be mentioned): The payment shall be made in Indian Rupees. No separate payment for AMC will be done, it will be merged with the AMC of the existing equipments. For claiming the payment, the supplier has to submit the following documents to the paying authority:(a) Invoice clearly indicating break up details of composite price i.e. Basic, E.D., Sales Tax, any other Duties and Taxes, Freight/Packing Charges, Service Tax etc. (b) Acknowledged Delivery Challan in original (c) Excise gate pass / invoice or equivalent document, if applicable. (d) Inspection Certificate of QA-Payable copy in original (e) The sea freight receipt as per the rates approved by the Ministry of Water and Surface Transport, if applicable. (f) Proof of payment of Octroi/ entry tax etc., if applicable.
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Note :-

5.4

If the supplier fails to furnish necessary supporting documents i.e. excise/Customs invoices etc. in respect of the Duties/taxes which are CENVAT-able, the amount pertaining to such Duties/Taxes will be deducted from the payment due to the firm. Payment against CENVAT-able duty will be made only when CENVAT-able invoice is submitted by the supplier. Warranty The warranty of the equipment will be for 12 months period starting from the date of the system acceptance. The supplier will provide support service during this warranty through its factory facilities or its Regional Repair centers. The warranty of the equipment shall be as per clause No. 10 of General (Commercial) conditions and clause No.. of Special (Commercial Conditions, if any). Delayed supply and LD Fall Clause: Annual Maintenance Contract (AMC) Terms & conditions of AMC are attached as Annex-G.

6.

7. 8. 9.

10.

Scope of the Work. The scope of work will be as under ( as per Annexure). Technical Specifications.Quality Assurance and Inspection M/s . will propose the test schedule within 1 week of issue of P.O. for testing of functional requirements including validation of various reports. This test schedules shall be examined by BSNL and finalized within 2 weeks of receipt of the same to make it as a reference document for testing by BSNL. A/T Acceptance: This will be governed as per the existing conditions of tender under heading reference S. No (i) above. Training Training to BSNL staff shall be imparted by supplier for implementation and operating the system for 2 days in each of the Telecom circles (Total .. days). The logistics for the training will be arranged by BSNL.
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11. 12.

13.

14.

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15.

Security Agreement Acceptance of APO shall imply that you will sign the Security agreement as required vide Security clause No.36 of Section 4 Part A of tender document, if applicable. BSNL reserves the right to cancel Purchase Order if the agreed delivery schedule is not adhered to by the supplier. Any loss arising out of such delays in the supply of the equipment shall be on the supplier account. ---------% advance shall be payable against this order.(If applicable in case of ITI Reservation Quota only) The supplier shall submit unconditional acceptance to all the technical, commercial clauses/conditions of the tender document, GR and clarifications issued, along with acceptance of the APO. This APO & PO/Contract is subject to jurisdiction of Court at .. only. Yours faithfully Assistance General Manager ( Enclosures:1.General (Commercial) Conditions of Contract (Annexure-A) - pages. 2. Special (Commercial) Conditions of Contract (Annexure-B) - ... pages. 3. Technical Specifications (Annexure-C) pages. 4. Detailed Bill of Material (Annexure-D) .. pages. 5. Make & Model List (Annexure-E) pages 6. Circle wise (or SSA wise) allocation list (Annexure-F) pages 7. Terms and conditions of AMC (Annexure-G) pages. )

16.

17.

18.

19.

Copy to : 1. 2. 3. 4.

GM (User Group), BSNL CO, New Delhi. CGM QA , 61, Cock Burn Road, Bangalore AGM (User), BSNL CO, New Delhi, w.r.t. his U.O. Note No . Date ... Office copy.

***

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CHAPTER - 12 12 PURCHASE ORDER 12.1 Conditions for issue The issue of Purchase Order in any procurement is subsequent to the following conditions being met: a) The Committee for Evaluation of Tender recommendations, including any modifications, where felt necessary is approved by the competent authority. b) The purchase proposal being approved and concurred by the competent administrative authority and finance advice. c) The successful bidder/bidders accepting the Letter of Intent/Advance Purchase order containing all the commercial clauses and prices unconditionally. d) The successful bidders providing the required Bank Guarantee from the Nationalized/ Scheduled Bank. e) The issue of Purchase Order, in the approved format being approved by the DGM in charge of procurement. f) The Purchase Order shall be issued on firm prices only. g) Any other condition required to be met. 12.2 Competent Authority to Issue Purchase order On the fulfillment of the conditions necessary to issue the Purchase Order, the designated AGM of the MM Branch would be competent authority to issue the Purchase Order. Purchase Order Format A sample format of purchase Order is given in Annex 12.1 for ready reference.

12.3

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Annexure- 12.1 PURCHASE ORDER FORMAT Bharat Sanchar Nigam Ltd. (A Govt. of India Enterprise) [Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath New Delhi - 110 001 (MM Section) File No.__________________ PO NO.. Subject:- PURCHASE ORDER FOR THE SUPPLY OF .. ______________________________________________________________ 1 Name & : Address of Contractor 2 Name of Purchaser : Bharat Sanchar Nigam Ltd.,. A Government of India Enterprise (Hereafter referred to as Purchaser). T.E. No BSNL APO No.. Your acceptance No. .. to above APO vide your letter Dated__________

Purchasers reference Contractors reference

I Ii

5 6

i ii iii Scope of the : PO Consignee : Details, Paying Authority etc. Delivery Schedule 7.1

The total delivery period for supply of equipment shall be ..from the date of placement of Advance Purchase Order. The first ..months shall be for validation and lead time for preparation. The supplies shall be evenly distributed month-wise and circle-wise as given
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7.2

Performance Bank Guarantee

below:- (The delivery schedule will be mentioned) If the supplier fails to complete the supply during the original delivery period, the purchaser reserves the right to cancel the Purchase Order & take action according to the terms & conditions of the tender. M/s.has accepted the APO unconditionally/ unequivocally & has furnished performance bank guarantee for an amount of Rs.. vide BG No. .dated by.. and this PBG is valid up to ...

19

Quantity and Price The detailed prices are given below: Sl. No Type Qt y. No s. Basic unit price Rs. Excise duty % Rs. Sales tax % Rs. F&F pkg & insur % Rs. Unit price all inclusive Rs. Unit Unit price CENVAT excluding Rs. Cenvat Rs.

10

Payment Terms

<Payment conditions to be mentioned> For claiming payment, the supplier shall submit the following: Invoice Delivery Challan Supplier certificate for dispatch Insurance receipt/Policy copy Excise Gate Pass/Invoice /equivalent document Consignee Receipts The sea freight receipt as per the rates approved by the Ministry of Water & Surface Transport Proof of payment of Octroi/ entry tax etc., if any

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

Payment against CENVAT-able duty will be made only when CENVAT-able invoice is submitted by the supplier. 11 Specification : The complete equipment supplied shall be strictly in accordance with TEC Specification No.. GR/.. and all other amendments & clarifications issued/ to be issued by this office.

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12.

Insurance

The equipment shall be got insured by the Contractor up to a minimum period of..days after store is delivered to the consignee. The supplier will be responsible till the entire quantity of the stores ordered for arrival in good working conditions at destination is received by consignee. The consignee will immediately but not later than prescribed period of insurance of arrival of the stores at the destination notify the contractor of any loss or damage to the store that may have occurred during transit. The period of insurance cover will be indicated by the contractor to consignee/ paying authority. In case of any loss/ damage during transit the case will be lodged by supplier with the concerned authority on receipt of report from the consignee/ paying authority. The store should on no account be dispatched, delivered without getting them tested/ accepted by BSNL Inspecting & QA Testing Wing.

13

Installation & Commissioning Repair Center

14

The supplier shall have to establish nodal repair centers in India for undertaking repair of faulty modules/PCBs including tools and testers. There shall be at least one nodal centre in each circle allotted to the supplier. The turn around time for such repairs shall be maximum 21 days as per the provisions made in AMC conditions included in this tender. The supplier shall clearly intimate the site for such repairs in advance.

15 15

Training

16 17

Documentation

: The supplier shall have to get their equipment type approved / validated from TEC or a team nominated by BSNL. All the shortcomings observed during TAC/Validation process shall also be rectified by supplier in all the supplies already made/to be made without any cost. The supplier shall also be responsible to get the Acceptance Testing (A/T) done through the A/T Wing of BSNL.

Validation/ TSEC :

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18

Warranty

19

Other conditions 19.1 of the contract

The supply of .equipment shall be governed as per General (commercial) conditions of the contract given in Annex.-B and special conditions of contract given in Annex.-C and as per procurement manual .. The entire supply shall also be governed as per all terms & conditions as laid down in the bid document of the tender enquiry and as modified from time to time. Any amendment/clarification/modification issued /to be issued shall also be applicable for this supply. However, wherever there is a conflict, special conditions as given in section IV of bid document and conditions given in this Purchase Order will prevail over the general conditions given in Section-II & III in the bid document.

19.2

20F Fall clause

21. Jurisdiction of Court : This PO/Contract is subject to jurisdiction of Court at Delhi only

Asstt. General Manager ( ) Enclosures:-1.General (Commercial) Conditions of Contract (Annexure-A) - pages. 2. Special (Commercial) Conditions of Contract (Annexure-B) - ... pages. 3. Special (Technical) Conditions & Technical Specifications (Annexure-C) pages. 4. Detailed Bill of Material (Annexure-D) .. pages. 5. Make & Model List (Annexure-E) pages 6. Circle wise (or SSA wise) allocation list (Annexure-F) pages 7. Terms and conditions of AMC (Annexure-G) pages. Copy to : 1. GM (User Group), BSNL CO, New Delhi. 2. CGM QA , 61, Cock Burn Road, Banglore 3. AGM (User), BSNL CO, New Delhi, w.r.t. his U.O. Note No. dated .. 4. .. 5. .. Yours faithfully ( )
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13 13.1

CHAPTER - 13 GUIDIELINES FOR PLACEMENT OF EDUCATIONAL ORDERS The Need The purpose of educational order is to develop new potential source of commercial supplies by broadening the supply base and encourage competition so that BSNL could have the benefit with regard to quality, delivery and price and break possible cartelization among the established vendors. This needs to be done where the capacity of the industry is inadequate to meet the requirements of the BSNL. However, there are some items for which the existing established base is much greater than the total requirement of the BSNL and such production units are already under loaded and in such cases there is no need for development of new supply sources for placement of educational order. Nomenclature The nomenclature of "educational order" will include what is currently known by the name of trial order or experimental order. Type Approval An educational order would be given only to a vendor who has obtained type approval of the equipment or item of store concerned from the TEC or the QA as the case may be. Quantity of Order The educational order for an item in favour of any vendor will be restricted in a financial year to a maximum of 2 per cent of the total requirement for the financial year and financial limit for placing an Educational Order for any item in favour of any vendor will be Rs. One Crore. In case the requirement for the current year is not available, it will be restricted to actual purchases made in the previous financial year. Price A vendor seeking to obtain an educational order will not be expected to participate in a bid for a tender. The order can be placed upon him subject to various restrictions given in this chapter at a price which is at least 10% less than the latest tender price for the current year(i.e. finalized during past 10 months) for the concerned item. In case, the tender price for the current year is not yet available, the price would be fixed provisionally at 75% of the last year's price which will be suitably adjusted to 90% of the current price when it becomes available.

13.2

13.3

13.4

13.5

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13.6

Power to place Educational Order The educational orders for telecom equipment and stores shall be placed for centralized purchase item by the BSNL Corporate office and for decentralized items by Circles to whom power is delegated for its procurement. Note:-In case of decentralized items, Corporate Office will authorize CGMs for placement of Educational Order. Exceptions Any exception to the above guidelines will be made only with due approval of Business Vertical i.e. Director or CMD in BSNL Corporate Office. ***

13.7

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CHAPTER 14 14 PRICING AND PRESERVATION OF THE TENDER DOCUMENTS

14.1 Pricing of the tender documents 14.1.1 The company incurs expenditure for the preparation of bid documents. It is also desirable that only the genuine prospective bidders should acquire these bid documents to avoid wastage. With this in view, it is decided that the bid documents to be issued to the prospective bidder must be sold at the pre-determined price. The price of the document is determined on an estimated cost of procurement and is indicated below: Sl. No Estimated cost of tender I ii iii iv v vi vii. Up to Rs 1 Lakh Above Rs 1 Lakh and uptoRs 50 Lakh Above Rs 50 Lakh and uptoRs 1 Crore Above Rs 1 Crore and uptoRs 10 Crores Above Rs 10 Crores and uptoRs 50 Crores Above Rs 50 Crores and uptoRs 150 Crores Above Rs 150 Crores Bid document price Rs 100/Rs 500/Rs 1,000/Rs 2,000/Rs 4,000/Rs 8,000/Rs 10,000/-

Note: Bid documents for limited tenders of estimated cost up to Rs 50,000/(Rupees Fifty Thousand Only) may be issued free of cost. However, bid documents for limited tenders of estimated cost above Rs 50,000/may be priced as per the details given above. 14.1.2 However, the Tender documents to MSE registered Small Scale Industries shall be given free of cost. Before issue of such Tender documents free, they should be asked to submit details of their registrations with MSE for the tendered item. Their eligibility as per terms and conditions of the tender in question should also be examined and if they meet the conditions stipulated, they may be issued tender documents free of cost. 14.2 Preservation of tender documents 14.2.1 As per the bid documents a bidder submits 5 copies including the original bid document. 4 copies of the bid documents are distributed among the members of the Committee for Evaluation of Tender. Each member of the Committee for Evaluation of Tender will preserve his copy up to a month after the purchase orders are issued against a tender enquiry. One month after the issue of the purchase orders the bid document may be disposed off by the member themselves. MM Cell will continue to keep the original copy till the contractual obligations are over.

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14.2.2 In case of tenders invited through e-tendering process Tender Document, Clarifications issued by purchaser, Bid data downloaded during the Tender Opening events shall be saved & backup of same shall be kept on suitable media such as DVD/CD under signature of all Tender opening Officers. The data saved as above shall be used as reference for providing details of bids if required in future by any agency. 14.3 Post-bid clarifications from bidders One set of documents submitted by bidders after opening of bids in response to clarifications sought by BSNL during evaluation should be preserved in MM Cell (MMT Section in Corporate Office) along with the original bids of the bidders. ***

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15

CHAPTER - 15 CONCESSIONS TO MSE UNITS

15.1 The guidelines, issued by Ministry of Micro, Small & Medium Enterprise (MSME), Government of India regarding concessions for Micro& Small Enterprise Units registered with District Industries Centres or Khadi & Village Industries Commission or Khadi & Village Industries Board or Coir Board or National Small Industries Corporation(NSIC) or Directorate of Handicrafts & Handloom or any other body specified by Ministry of Micro, Small & Medium Enterprise, have been considered by the BSNL (Corporate Office) and it has been decided that these units shall be allowed the following concessions. 15.2 Supply of Tender Documents The tender documents shall be issued to MSE bidders free of cost provided the tendered item is listed in the Registration Certificate of MSE. 15.3 Exemption from payment of Bid Security deposit /Earnest Money Deposit The MSE units registered with bodies as detailed in para 15.1 above shall be given exemption from payment of Bid Security deposit provided the tendered item is listed in the Registration Certificate of MSE. a) A proof regarding current registration with bodies as detailed in para 15.1 above for the tendered items will have to be attached alongwith the bid. b) The enlistment certificate issued by bodies as detailed in para 15.1 should be current & valid on the date of opening of bid. 15.4 Reservation of Quantity 15.4.1 20 % of the Estimated Quantity /requirement in any tender shall be earmarked to be procured from MSEs provided their quoted price is within the band of L1+15%. Out of this quantity, a sub target of 4% is earmarked to be procured from SC/ST owned eligible MSEs. In case of non availability of SC/ST owned MSEs, this 4% quantity shall be offered to other MSEs. 15.4.2 The participating MSEs in a tender, quoting price within the band of L1+15% are also be allowed to supply a portion of the requirement by bringing down their price to the L1 price arrived after tender evaluation. Such MSEs shall be ordered to supply up to 20 % of the total tendered value. In case of more than one such eligible MSE, the supply will be shared equally. 15.4.3 In case a MSE happens to be L1, L2 etc, then it will be allotted tender quantity as envisaged in the tender. 15.5 Ordering of Quantity (Delivery Schedule) The Purchase Order issued on MSE will be based upon its monthly turnover and / or the quantity stated in the questionnaire of the tender during bid submission.
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CHAPTER 16 16 16.1 VENDOR RATING SYSTEM Introduction The BSNL is procuring equipment and materials worth thousands of crores of rupees every year through its PSUs, Telecom Factories and open tenders. It is therefore necessary that the BSNL procures only quality products at competitive prices with deliveries at stipulated pace for achieving planned and operational targets. Keeping this in view BSNL has decided to introduce Vendor Rating System for procurement of materials with effect from January' 97.

16.2 Vendor Rating 16.2.1 The philosophy of Vendor Rating aims to help the BSNL to procure equipment/stores from a vendor who is able to deliver the products of good quality and at competitive prices with deliveries at a stipulated pace for achieving planned and operational targets. Assessment of these qualifications of a vendor, on a single point scale, to help grading the performance of a vendor is called Vendor Rating. 16.2.2 The vendor getting the highest rating will be regarded as V-1 (similar to L-1) and the others in the descending order of their rating for the purpose of distribution of quantities of equipment/ materials to be ordered. However, the ordering rate (price)for procurement will be the lowest evaluated price out- of the rates quoted by the vendors selected for ordering on Vendor Rating basis. 16.3 Vendor Rating (VR) Vendor Rating will be calculated as per the formula given below:VR = 0.6 PR + 0.3 DR + 0.1 QR Where PR = Price Rating DR = Delivery Rating QR = Quality Rating 16.4 Price Rating (PR) Price Rating is worked out as follows: PL PR = ------PQ Where PL = Lowest price quoted by a vendor for the product being tendered. PQ = Price quoted by the vendor being evaluated for the tendered item.

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16.5 Delivery Rating (DR) 16.5.1 The Delivery Rating will be calculated as per the formula given below:

Where Qi <Qp If Qi >Qp, then take Qi = Qp Q1 = Quantity supplied within Scheduled delivery period. SDP = Scheduled Delivery Period or Initial Delivery Period(IDP) Q = Total ordered quantity T = Scheduled delivery period in months. Tx = Time taken beyond Scheduled D.P. in months for each extension including Scheduled D.P.

Q1 ----Q

Qx P Qi Qp

= = = =

Quantity supplied during each extended period. Number of supply segments or slots (within SDP) Quantity delivered in a particular supply segment (within SDP) Quantity to be delivered in every supply segment (within SDP)

For calculation of DR, the following procedure as per above formula will be adopted. 16.5.2 The period for calculation of Delivery Rating will be two years as specified in Bid Documents. It is defined as "WINDOW". 16.5.3 All purchase orders issued during the "WINDOW" will be considered for calculation of Delivery Rating. However, if in respect of any such P.O. the scheduled delivery date extends beyond the "WINDOW", then in respect of such P.O (s), the Delivery Rating shall be calculated taking into account the supplies required to be made within the period common to both the "WINDOW" and the scheduled delivery period that shall be taken on prorata basis.
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16.5.4 All supplies made within any period of the "WINDOW" in respect of P.Os issued prior to the commencement of the "WINDOW" shall be considered for the calculation of DR, provided such period of the "WINDOW" falls within original scheduled delivery date stipulated in the P.O and not any further extensions accorded and this shall be further subject to the following proviso: 16.5.5 From out of supplies actually made during the "WINDOW", shortfall if any in the supplies to be made prior to the commencement of the "WINDOW" shall be offset and the balance quantity alone shall be taken as effective supply during the "WINDOW". 16.5.6 The formula for computing overall DR taking into account the DR for every P.O is given below:

Where

Qoi = Quantity ordered for the ith P.O DRi = Delivery Rating for the ith P.O. n = No: of P.Os

16.5.7 The Delivery Rating of vendors who have not executed any commercial order during "WINDOW" will be rated based upon their past performance. In case their past performance is equal to or above the average DR of the firms under consideration, then they will be given average delivery rating. However, if their past performance is below average delivery rating, the actual performance will be taken for calculation of Delivery Rating. The "WINDOW" for this purpose shall be of same duration. 16.5.8 In case of the vendors who have executed only Educational Orders, a Delivery Rating equal to Average Industrial Rating or Delivery Rating earned by them in Educational Orders whichever is less will be given. 16.5.9 If the delay is caused due to departmental reasons as certified by competent authority or Force Majeure conditions, it will not be taken into account in computing delays in supply. 16.5.10 For the purpose of calculation of Delivery Rating only, the date of delivery will be taken as the date of issue of Inspection Certificate by QA Wing. However, for the purpose of payments and liquidated damage, the delivery will continue to be as stipulated in the Purchase Order. 16.5.11 The supplies should be spread evenly over the scheduled delivery period. An uniform 60 days of initial segment (including lead period) and 30 days or part thereof for subsequent segments (slots) are presumed, irrespective of time allotted for the initial segment in P.O in order to observe an uniform
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supply principle for computing DR.

16.6 Clarifications on VRs 16.6.1 Clarification for Clause 16.5.4: a) The Purchase Order issued prior to commencement of "WINDOW" whose extension period alone lies within the "WINDOW" will not be considered for DR calculation. b) A Purchase Order which has got an extension in addition to a part of Scheduled Delivery Period in the "WINDOW" will be considered for the purpose of DR. In such cases the supplies effected during the extension period also will be taken into account. 16.6.2 In respect of POs issued during "WINDOW" for which the Scheduled Delivery Period closes within "WINDOW" and extension is issued by the purchasing authority which may extend beyond "WINDOW", the DR in such cases will be calculated on prorata basis taking into account the supplies supposed to be made during "WINDOW". 16.6.3 Purchase Orders issued against BSNL (Corporate Office), tenders only will be considered for calculation of Delivery Rating. 16.6.4 Any modification obtained by supplier on its request made after the date of NIT which are in the nature of affecting the existing DR will not be taken into account. 16.6.5 Advancing of supplies between segments, within Scheduled Delivery Period will be reckoned for calculation of DR subject to the condition that the supplies made in excess of the quantity that is required to be supplied in that segment will be carried over to the next segment and so on. This procedure will be uniformly applied for all POs whose Scheduled Delivery Periods lies either fully or partly within "WINDOW". 16.6.6 In respect of PIJF cable only, irrespective of the group, the quantity of cables supplied will be taken in terms of CKM (conductor Km) for the purpose of DR calculation subject to the condition that the quantity so calculated in CKM will be limited to the quantity of the cable to be supplied in each size, as specified in the P.O. 16.6.7 DR for all the cases will be calculated by CGM (QA), Bangalore and his decision is final. 16.7 Quality Rating (QR) The Quality Rating will be awarded in the following manner, if the bidder submits valid ISO 9001 / 9002 Certificate. Certification Quality Rating ISO 9001 1

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ISO 9002

16.8

Ordering Price Vendor with the highest Vendor Rating will be regarded as the V-1 bidder and the others listed in the descending order of their vendor rating for the purpose of distribution of the quantities to be ordered. However, the ordering rate (price) for procurement will normally be the lowest one out of the rates (prices) quoted by the vendors selected for ordering on Vendor Rating basis. 16.9 Implementation Methodology: Role of different Wings of BSNL 16.9.1 BSNL Corporate Office a) It would be the nodal point with regard to all matters related to Vendor Rating System. b) The MM Branch shall incorporate all aspects of Vendor Rating that are required to be spelt out clearly in appropriate clauses of the tender documents. c) The MM Branch shall also ensure transparency of Vendor Rating System to all concerned as per provisions contained in the tender documents. d) The MM Branch shall evolve a Grievance redressal Mechanism and be responsible for redressing any grievances of vendors with regard to Vendor Rating issues. e) The Committee for Evaluation of Tender would be responsible for final computation of the Vendor Rating figures in respect of POs placed by BSNL Corporate Office, based on the Delivery Rating figures received from BSNL QA and the Price Rating and Quality Rating. 16.9.2 QA Circle Responsible for collection and processing of the Delivery Rating data from various QA centers and consolidation of the same as per various clauses of tender documents and submit Delivery Rating of all bidders participating in a tender to the Purchasing Authority. 16.9.3 Role of CGMTS a) CGM (TS), Calcutta, would be the nodal officer with regard to all procurements done through CGM (TS). b) He is responsible for incorporating suitable clauses in the tender documents with regard to the Vendor Rating System in all tenders to be issued in future, for the products on which Vendor Rating system is to be applied. c) He is to ensure transparency of Vendor Rating system to all concerned as per provisions in the tender documents. d) He has to evolve grievance redressal mechanism and be responsible
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e)

for redressing any grievance of vendors with regard to Vendor Rating issues. He is to do final computation of Vendor Rating figures while finalizing the tenders based on Delivery Rating received from BSNL QA and his own price and quality rating calculations.

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CHAPTER 17 17 COPIES OF LETTERS/ CIRCULARS/ ANNEXURES 17.1 Annex-1.1 Centralized Items to be procured by BSNL Corporate Office S. No. Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Digital Wave Division Multiplexing (DWDM) equipment and associated test and measuring instrument Synchronous Transport Mode (STM)-1,4,16 associated test and measuring instrument Digital cross connect systems. Cellular Mobile Service Expansion Equipment Extra Large Digital Switches, C-DOT MAX-XL & TAX including RSUs & RLUs PIJF Cables except 5 Pair Cables National Internet Backbone Equipment (NIB)-II WLL Service Expansion Equipment Voice Over Internet Protocol (VOIP) Equipment International Gateway Equipments Optical Fibre Cables. 24 Fibre & higher Any new Technology or new services items Digital Satellite Public Phone (DSPT) Digital Loop Carrier (DLC) Line Multiple Distribution System (LMDS) Digital Circuit Multiplexing Equipment (DCME) Intelligent Network (IN) Managed Leased Line Network (MLLN) Equipment Any New Technology or New Services Item or Item not established in the network being introduced for the first time and items for which quality has not stabilized *** Equipment and

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17.2

Guidelines for procurement of Decentralized items. [Jt.DDG (MMS) BSNL CO No.60-8/2000-MMS/508Dated 21-06-01] Kindly refer to this office letter of even No. dated 11.4.2001 wherein the decision of BSNL, Board was intimated to Heads of Telecom Circles for the items required to be purchased through centralized / decentralized procurement. It has now been decided that the following guidelines may be followed by the Circles for procurement of the decentralized items : a) Procurement shall be done following transparent tendering procedure in consistence with the overall procurement policy of the BSNL. b) While procuring, the existing inventory and inventory in the pipeline should also be accounted for. Circles should take into account their consumption pattern while assessing their requirements. Utmost care should be taken to ensure that piling up the inventory is avoided. Care is also to be exercised in assessing the requirement of items where no norms are prescribed. Rate List number in respect of stocked items will continue to be retained till further instructions. c) Procurement will be as per technical specifications (GR) applicable at the time of calling of the tenders. The applicable specification with Amendment No. should be indicated in the tender as decided by the BSNL HQ. d) For all purchases made, the deliveries should be accepted after appropriate inspection and testing by QA Wing. e) The procurement is to be done on reasonable rates. The reasonableness of the rates obtained in the tenders shall be assessed by comparing with the rates of previous procurement and also current market trend for the same. f) Telecom Circles shall procure these items to meet their annual requirements keeping available inventory in view. g) Procurement should be made with the concurrence of Circle IFA. The quantities to be procured, should be recommended by the high power Circle Committee consisting of IFA of Circle, GM(D), GM(O) & DGM(MM) for approval of CGM. h) The orders would be placed against sanctioned estimates and approved budget and in a manner that supplies are received regularly instead of bunching towards the end of the year. i) Powers for decentralized procurements are not to be further delegated to the lower formations. The powers should be exercised by the Heads of the Circles only. j) No ordering shall be done on the basis of tenders finalized and purchase orders issued by either BSNL HQ or any other Circle except in the cases where special authorization has been given by BSNL HQ. k) The reservation for Telecom Factory, ITI and HTL for certain items
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would continue till further orders. Specific quantities of the reservation for these organizations shall be indicated by MM Cell based on their manufacturing / supply capacity. However, for ITI, the maximum reservation quantity will be 30% and if the item is reserved for both ITI and HTL, the reserved quantity will be 35% to be distributed in the ratio of 20:15 respectively subject to their manufacturing / supply capacity. l) The Telecom Circles will ensure proper and expeditious utilization of the material procured by them. m) The Circles will submit a report about procurement under the decentralization scheme every six months in the prescribed formats as Annexure-I & II (Copies enclosed). They shall convey details of procurement made by them to the Planning Cells with budget details for monitoring of progress. They will also send a copy of the orders placed to the MM and Planning Cells of BSNL. n) Any other rules/instructions on the procurement issued by the BSNL shall be observed. This issues with the approval of Competent Authority of BSNL Board. 17.3 Review of Decentralized procurement of DLC Equipment Reg. [Jt. DDG (MMS) BSNL CO No. 60-8/2000-MMSDated 2-.05-02] Various Telecom Circles from time to time have conveyed their difficulty in finalization of Tenders for some of the items like DLC Equipment etc. owing to availability of a very few eligible vendors and also in consideration of the decision taken in the Heads of Circles meeting held on 10th & 12th April, 2002, it has been decided that henceforth procurement of DLC on SDH shall be done centrally by BSNL Corporate office The orders for decentralized procurement of DLC Equipment issued vide this office letter of even no. dated 23.8.2001 stands withdrawn with immediate effect. However following conditions will apply in respect of procurement action already initiated by the Telecom Circles for DLC Equipment: 1. The Telecom Circles which have already opened their tenders may continue with the procurement process at their own level. 2. However, in cases where only NIT has been issued and tenders are yet to be opened, Circles are directed to withdraw the NIT & no procurement action against NIT may be initiated. They are also advised to send their requirements of DLC on SDH along with requisite information to the Switching Planning Cell, BSNL Corporate office. This issues with the approval of CMD, BSNL. 17.4 Review of Decentralized procurement of STM-1/ STM-4 & SDH Analyzers Reg. [Jt.DDG (MMS) BSNL CO No. 60-8/2000-MMS/423Dated19-06-02]
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In continuation to this office letter of even no. dated 27th May 2002 reverting decentralized procurement of DLC on SDH to centralized procurement, it has been decided that the BSNL Corporate office shall make the procurement of following equipment centrally: 1. STM-1 and STM-4 Equipment 2. SDH Analyzers However, following conditions will apply in respect of procurement action already initiated by the Telecom Circles for the above equipment: The Telecom Circles, which have already opened their tenders, may continue with the procurement process at their own level. However, in cases where only NIT has been issued and tenders are yet to be opened, Circles are directed to withdraw the NIT & no procurement action against NIT may be initiated. They are also advised to send their requirements of STM-1, STM-4 equipment & SDH Analyzers alongwith requisite information to the Transmission Planning Cell, BSNL Corporate office. This issues with the approval of CMD, BSNL and shall come into force with immediate effect . 17.5 Decentralization of SMPS Power Plants and VRLA Battery of all sizes; Reg. [Jt.DDG (MMS) BSNL CO No.60-8/2000-MMS/365Dated 20-05-03] (a) It has been decided that SMPS Power Plant and VRLA Batteries of all sizes which were hitherto being procured by CGMTS, Kolkata centrally stand decentralized for all Telecom Circles except for the designated Circles viz. Assam, NE-I, NE-II, A & N, NFTF for which procurement shall be continued by CGMTS, Kolkata with immediate effect. All Telecom Circles, except the aforementioned designated Circles, can now procure Power Plants/Battery of all sizes themselves under their delegate financial powers. (b) The procurement of these items shall be made as per the existing guidelines issued by this office vide No.60-8/2001-MMS dated 21.6.2001. (c) Availability of funds shall be ensured with the concurrence of IFAs. Tender document/conditions shall be vetted by IFAs. This issues with the approval of BSNL Board. 17.6 Clarification regarding acceptance of Single Tender Cases. [ADG (WSF) BSNL CO No. 6-15/2000-EB(Pt.III) Dated0 8-04-05] A letter was issued by MM Cell vide 51-1/04-MMC/696 dated 11.10.04 (Annex. ) whereby it was clarified that a similar case related to procurement of switching equipment by Punjab Telecom Circle through open tender, in which only one bidder was found techno commercially responsive was
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examined at HQ level. Instructions were issued with the concurrence of Member (Finance), Telecom Commission vide letter No. 380-09/2000 TPS (Inet) dated 5.5.2000 (annex. II) that a limited or single response to an open tender will not be viewed as a case of single tender. 2. Meanwhile, WS` Cell had issued instructions vide letter of even number dated 10.2.2005(annex.III) whereby it was mentioned that delegated financial powers under item no. 17.3 Award of work by accepting single tender where open tenders have been called for any and only one tender was received should be exercised by invariably following Rule 441-C P&T Manual Volume II. 3. Due to above two diverse instructions on the same issue, there was confusion in field units on issue of manner for deciding Single Tender cases and some references have been received in this regard. The issue was brought before the Management Committee, which has approved that : Single tender cases should be decided as per the MM Cell instructions issued vide letter No. 51-1/04-MMC/696 dated 11.1.0.04 (annex.I) which clarifies that A limited or single response to an open tender will not be viewed as a case of single tender, subject to condition that the competent authority will approve the tender with the concurrence of his IFA after satisfying himself/herself that the Tender Evaluation Committee has recommended the case after verifying the following conditions: (a) Wide publicity was given for the subject tender. (b) Tender specifications are generic in nature (c) Qualified bidder meets all the tender specifications, terms and condition (d) Rates are reasonable (e) All the guidelines/policies regarding procurement of telecom equipment and stores in BSNL are observed. In all such cases approval of single tender will be reported to the next higher authority for information. This letter supersedes our earlier letter of even number dated 10.2.2005. All the field units are requested to follow the above instructions strictly for deciding the single tender cases. 17.7 Formation of PNC [AGM (MMY) BSNL CO No. 3-2/2007-MMTDated.13-04-09] I have been directed to communicate the observation of CVC for implementation in future tender as mentioned below :In a case, when on submission of CET report, competent authority decides for negotiation and PNC is formed and further if renegotiation is considered necessary and empowered committee is formed, the usual practice for constitution of CET, PNC and empowered committee is from officers of the same level. CVC observed in this case that empowered committee member should be one level above.
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As such, where CET and PNC are formed under the Chairmanship of DGM or below, then Empowered Committee members of one level above, may be considered. However, only for cases where CET and PNC are formed under the chairmanship of PGM/GM level then in these cases one level above will be Directors of BSNL Board and it may not be appropriate to constitute the higher Power Committee consisting of Director level. Therefore the same committee in such case only may be allowed. 17.8 More Participation of OEMs in tenders [AGM (MMY) BSNL CO No. 3-2/2007-MMT/Vol.I/Pt.I Dated 01-05-09] I have been directed to communicate that stress should be laid for more and more participation of OEMs in our tender. Whenever sufficient OEMs participation is anticipated, eligibility conditions may be framed such that OEMs only are allowed to participate. In case where it is felt that sufficient prospective bidders in terms of OEMs would not be available then only they should authorize not more than one front bidder to bid on their behalf. 17.9 Advertisement in NIT in newspapers [AGM (MMY) BSNL CO No. 3-2/2007-MMT Dated12-06-09] A clause on the subject is incorporated in Section-I (NIT) just below the concise format in Procurement Manual mentioned as under and will have immediate effect. Clause in Procurement Manual :- The procedure for publication of NIT in concise format in one National Daily with wide publication and Indian Trade Journal, Kolkata along with its display in detail on BSNL website having a link with NIC will be mandatory for a tender for and above thresh-hold value of Rs.25 lakhs in case of procurement of goods/materials/equipments and Rs.10 lakhs in case of tender for hiring of services. For tenders below Rs.25 lakhs in case of procurement and below Rs.10 lakhs in case of hiring of services, display of NIT on BSNL website with form downloadable facility and sending it to minimum six eligible bidders will be mandatory. 17.10 Provision of a Penalty clause [ADG (MMY) BSNL CO UO .No. 3-2/2004-MMT/Pt.III Dated 18-08-06] The planning cells of BSNL Corporate office while processing the case of procurement should make provision of a Penalty clause in the special condition of the contract for delay in installation & Commissioning of the turnkey projects. This issues with the approval of Director (Plg. & NS). 17.11 Operating of Tender Rates of Other Units [DOT No. 115-143/97-MMD Dated 24-04-99] Instructions have been issued by DOT Hq. from time to time authorizing Telecom Circles/ Districts etc. for procurement of a number of items on decentralized purchase basis. Although concrete guidelines have been given in such instructions, yet some of the circles have requested this office for
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permitting them to operate on tenders finalized by other circles in cases where their own tenders land into some difficult situations on account of unrealistic bids or litigation etc. Apart from this some of the circles have desired to know where the retendering is to be applied on decentralized items. (ii) Request of Telecom Circles for operating on the tender of other Circles is not accepted. A Circle is supposed to operate in all respects on its own tender. Where however no bidder quotes in response to a Circles tender or where there is stay/ ban by courts on total procurement by a particular Circle, such cases are to be referred to DOT HQs/ CGMTS with recommendations/ justification on case to case basis for seeking suitable advice from DOT/ CGM (TS). (iii) Introduction of Vendor rating by the Circles in their tenders may not be applied for the time being. 17.12 Procurement of material/stores in emergent cases [ADG (MMY) BSNL CO No. 3-2/2004-MMT/Pt.-II Dated 05.08/09-05] It has been brought to the notice of BSNL H/Q by different field units that the flow chart of Procurement existing in our Procurement Manual does not cater for the procurement of materials/stores in limited time i.e. in emergent cases such as meeting the needs in natural calamity and to provide specialized services to valuable customers on demand in their specified time frame. The case was examined in BSNL H/Q and the position is clarified as under :The time limits prescribed for various activities in the flow chart existing in the Procurement Manual are the maximum limits. These can always be suitably compressed by field units as per need and circumstances. In fact, every effort must be made to finalize the tenders as early as possible. However, the minimum time from issue of NIT to opening of tender may be kept as 21 (twenty one) days. Any clarification to the queries of any prospective bidder may be replied at least one week before the date of tender opening. Accordingly tenders may be finalized expeditiously. 17.13 Frequent violation of tender procedure Issue of instructions Regarding. [ADG (MMY) BSNL CO No. 3-2/2004-MMT/Pt.-II Dated 10-11-05] Union Public Service Commission has adversely commented against the violation of tender procedure in BSNL and emphasized the need of a deterrent mechanism to check the possibility of any irregularity in purchase of equipment/stores. The BSNL has already updated its Manual of Procurement in the June 2003 to cope with the need of PSU taking care & incorporating views of various field units, guidelines/instructions of CVC/DOT and other Govt. agencies and issued to all field units, alongwith its availability on BSNL website for strict adherence. The guidelines/instructions received from CVC and DOT are also
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issued to all field units from time to time and posted on BSNL website. Once again it is reiterated to make all efforts for bringing transparency & probity in purchase and strictly follow the norms stipulated in Procurement Manual & Addendum/ Amendment issued thereof, and also guidelines/ instructions issued from this office regarding procurement, which can be downloaded from BSNL website also for ready reference. Responsibility should be fixed and deterrent action may be initiated for any procedural lapse and deviation from norms of procurement. Matter may also be reported to this office for information and further action if needed in the matter. This issues with the approval of competent authority. 17.14 Procedures to be followed while signing/ sending the files containing agreements/ contracts etc., for the signature of the authorized signatory. [CS&GM(Legal) BSNL CO No. BSNL/SECTT./21-1/2002 Dated 03-04-07] Ref:- Circulars of even number dated 7.11.2003, 16.4.2004, 30.6.2004, 18.1.2005, issuing guidelines on the above subject. As all concerned are kindly aware, Powers of the Company are vested in the Board, which are exercised by the Board in accordance with the provisions of the Companies Act 1956, Memorandum and Articles of Association of the Company and the guidelines issued by the Government. Accordingly, the Board of Directors, for smooth operation of the companys business, delegated some of the powers of routine management to the officers below the Board level. Such of the officers piloting the agreements/contracts are, responsible and liable for ensuring performance of the obligations that may/will arise from such agreements, contracts etc., in the paramount interest of the Company. Therefore, vide the circulars of this unit, detailed procedural compliance to be adopted by various units were issued time to time. 2. With the introduction of the e-governance and compulsory e-filling of statutory documents, (i) each of the Director of a Company has been allotted a unique Director Identification Number [DIN]; and (ii) each of the company registered under the provisions of the Companies Act 1956 has been assigned a unique Corporate Identity Number [CIN] by the Ministry of Company Affairs. With this, now, quoting of the DIN and CIN which are the unique numbers identifying the Directors and the corporate entity - has become imperative in all the company related statutory documents filed with the appropriate authorities. 3. Agreements, Contracts and MoUs etc., are being entered into/signed/proposed routinely. With a view to protect and further strengthen the commercial interests of the BSNL, it has been decided that, in future, in addition to the procedural requirements laid down earlier, the piloting/nodal officers of such Agreements, Contracts, MoUs shall also obtain the Director Identification Number [DIN] and
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A.

B.

the Corporate Identity Number [CIN] of such other body corporate and place them in the respective files. For the sake of reference, the procedural compliance to be followed is enclosed as Annexure A, which needs to be followed conscientiously. 4. This issues with the approval of Chairman and Managing Director ENCL :As above. ANNEXURE A PROCEDURAL COMPLIANCE TO BE ENSURED BY EACH OF THE UNIT PILOTING AGREEMENTS, CONTRACTS, MOUS TO BE ENTERED INTO OR TO BE SIGNED WITH OTHER BODY[IES] CORPORATE DOCUMENTS TO BE KEPT IN THE RESPECTIVE FILES 1. A printed copy of the latest Annual Report of such Other Body Corporate(s)/Firm(s) or Association(s) of Persons etc. with whom the Agreement / MoU is contemplated to be entered into/to be signed, in case the printed copy is not available, Xerox copy of the same duly certified by the Company Secretary/Director/Managing Director/Partner of such Company/Firm; 2. An updated copy of the Memorandum of Association and Articles of Association of the Company; 3. List of all the Directors including their name(s) and address (es) alongwith contact telephone numbers of office and residence; 4. Certified true copy of the Boards Managements Resolution authorizing the official of such other Body Corporate(s) / Firm(s) or Association of Persons etc. to sign. Agreement/ Contract/ MoU on their behalf by the such Other Body Corporate(s) / Firm(s) or Association of Persons etc. to sign Agreement/ Contract/ MoU; 5. Specimen signature(s) of such authorized official duly attested by such Companys/Firms Banker; and 6. Director Identification Number [DIN] of all the Directors of such other body corporate; & 7. Corporate Identity Number[CIN] of such other body corporate ACTION TO BE COMPLETED BEFORE SIGNING/BEFORE SENDING THE FILE TO THE AUTHORISED SIGNATORY/DIRECTOR(S) FOR SIGNATURE A self contained note, indicating the (i) approval of the competent authority for the proposed agreement, contract, expression of interest, MoU etc., (ii) certificate evidencing the receipt of the documents prescribed at [A] above, (iii) and a copy of the document duly initialed on each page by the head of the respective nodal branch piloting/executing the agreement concerned; and the signature of the such other bodys authorized signatory duly witnessed, shall be sent, with the following certificate at
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the close of the note sheet:The unit concerned has satisfied itself with regard to (i) the particulars of the entity with whom the agreement is proposed to be entered into; (ii) the authorization of the signatories of such other entity; and that, (iii) the said document / agreement is in accordance with the draft approved by the competent authority; and each page of the document has been initialed by the CGM/ GM/ SR. DDG/ DDG. Further certified that the officer next in charge has been briefed about the contents of the agreements and the legal obligations/compliances to be fulfilled, so as to protect the interests of the BSNL [Annexure to Circular No. BSNL/ SECTT/ 21-1/2002, dated 03.04.2007]

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17.15 CVC Circulars regarding Negotiations No.OFF-1-CTE-1(Pt.) VIII Government of India Central Vigilance Commission Satarkta Bhawan, Block-A, 4th Floor, GPO Complex, INA, New Delhi Dated: 02 May, 2005 To Shri Avinash Agarwal, Jt. DDG (MMT), Bharat Sanchar Nigam Ltd. Statesman House, Barakhamba Road, New Delhi-110001 Sub: Procurement of Materials through open tender counter offers procedure. Sir, Please refer to your letter No.3-2/2004-MMT dated 9/10-3-2005 on the subject cited above. In this connection, it is informed that the procedure being adopted by BSNL in case order is to be placed on more than one bidder, does not appear to be in order. Counter offer simultaneously to L-2, L-3 bidders alongwith L-1 bidder is against the Commissions guidelines of negotiations with L-1 bidder only. Further as per BSNL procedure, if lower quoting firm backs out, inter-se ranking is recast and counter offer is made to next eligible bidder in the ranking, while as per Commissions instructions, in a situation where L-1 backs out re-tendering is to be done. 2. It is therefore, advisable that even is case where order is to be placed on more than one bidder, counter offer is initially made to L-1 bidder only. Only after L-1 bidder accepts the counter offer, L-2 bidder is offered the counter offered rate and so on. 3. Please acknowledge the receipt. Yours faithfully, (P.K. Kanchan) Technical Examiner

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No.OFF-1-CTE-1(Pt.) VIII Government of India Central Vigilance Commission Satarkta Bhawan, INA, GPO Complex, Block-A New Delhi:110023 Dated: 17 Aug, 2005 To Shri Avinash Agarwal, Jt. DDG (MMT), Bharat Sanchar Nigam Ltd. Statesman House, B-148, Barakhamba Road, New Delhi-110001 Sub: Procurement of Materials through open tender Counter offers Procedure. Sir, Please refer to your letter No.3-2/2004-MMT dated 5-7-2005 on the subject cited above. In this connection, it is stated that the post tender negotiations include counter offers also. Yours faithfully, (P.K. Kanchan) Technical Examiner For Chief Technical Examiner

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BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) Bharat Sanchar Bhawan, Janpath New Delhi-110001 (MMT Section) F. No. 3-2/2004-MMT/Pt.-II Dated: 27.07.2007 To All Chief General Managers, Telecom Circles/Telecom Districts/Telecom Projects/ Maintenance Regions/Task Force/Telecom Stores, Kolkata/ NCES/DATA Networks/Telecom Factories/ QA Circle/T&D Circle. Subject:- Tender process Negotiations with L-1. Kindly find enclosed herewith a Circular No. 4/3/07 of letter No. 005/CRD/012 dated 03.03.2007 from Central Vigilance Commission, Govt. of India, Satarkta Bhawan, Block-A, GPO Complex, INA, New Delhi-110023 on the above cited subject for necessary action please. Encl. As above. (S.P. Singh) ADG (MMY) Copy for kind information to : 1. PS to CMD, BSNL Corporate Office, New Delhi. 2. Director (Plg. & NS)/(Operation)/(HRD)/C&M)/(Finance), BSNL CO. 3. All Sr. DDGs/DDGs of BSNL Corporate Office. 4. Jt. DDG (MMT)/(MMD)/(MMC)/(MMS) 5. ADG (MMX) 6. OSD to DDG (MM) for putting on BSNL Intranet. 7. Office Copy/Guard File.

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No.005/CRD/012 Government of India Central Vigilance Commission Satarkta Bhawan, Block-A, GPO Complex, INA New Delhi- 110023 Dated the 3rd March, 2007 Circular No. 4/3/07 Sub:- Tendering process - negotiations with L-1. Reference is invited to the Commissions circulars of even number, dated 25.10.2005 and 3.10.2006. on the above cited subject. In supersession of the instructions contained therein, the following consolidated instructions are issued with immediate effect: (i) As post tender negotiations could often be a source of corruption, it is directed that there should be no post-tender negotiations with L-1, except in certain exceptional situations. Such exceptional situations would include, procurement of proprietary items, items with limited sources of supply and items where there is suspicion of a cartel formation. The justification and details of such negotiations should be duly recorded and documented without any loss of time. (ii) In cases where a decision is taken to go for re-tendering due to the unreasonableness of the quoted rates, but the requirements are urgent and a re-tender for the entire requirement would delay the availability of the item thus jeopardizing the essential operations, maintenance and safety, negotiations would be permitted with L-1 bidder(s) for the supply of a bare minimum quantity. The balance quantity should, however, be procured expeditiously through a re-tender, following the normal tendering process. (iii) Negotiations should not be allowed to be misused as a tool for bargaining with L-1 with dubious intentions or lead to delays in decision-making. Convincing reasons must be recorded by the authority recommending negotiations. Competent authority should exercise due diligence while accepting a tender or ordering negotiations or calling for a re-tender and a definite time frame should be indicated so that the time taken for according requisite approvals for the entire process of award of tenders does not exceed one month from the date of submission of recommendations. In cases where the proposal is to be approved at higher levels, a maximum of 15 days should be assigned for clearance at each level. In no case should the overall timeframe exceed the validity period of the tender and it should be ensured that tenders are invariably finalized within their validity period.
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2. 3.

(vi) As regards the splitting of quantities, some organizations have expressed apprehension that pre-disclosing the distribution of quantities in the bid document may not be feasible, as the capacity of the L-1 firm may not be known in advance. It may be stated that if, after due processing, it is discovered that the quantity to be ordered is for more than what L-1 alone is capable of supplying and there was no prior decision to split the quantities, then the quantity being finally ordered should be distributed among the other bidders in a manner that is fair, transparent and equitable. It is essentially in cases where the organizations decide in advance to have more than one source of supply (due to critical or vital nature of the item) that the Commission insists on pre-disclosing the ratio of splitting the supply in the tender itself. This must be followed scrupulously. (v) Counter- offers to L-1, in order to arrive at an acceptable price, shall amount to negotiations. However, any counter-offer thereafter to L-2, L-3, etc., (at the rates accepted by L-1) in case of splitting of quantities, as pre-disclosed in the tender, shall not be deemed to be a negotiation. It is reiterated that in case L-1 backs-out, there should be a re-tender. These instructions issue with the approval of the Commission and may please be noted for immediate compliance.

(Vineet Mathur) Deputy Secretary All Chief Vigilance Officers 17.16 Staggering of tenders (Letter No. 3-1/2003-MMT Dated 25.06.2003) In pursuance of the efforts being made to bring total transparency in tendering/procurement activity at all levels. I have been directed to communicate the decision of the BSNL Corporate office that tenders for the same item should be staggered in such a manner that next tender is opened after the expiry of the scheduled delivery period of the first tender. 17.17 Evaluation Criteria in tenders (Letter No. 3-2/2007-MMT Dated 16.11.2010) A letter has been received from Central Vigilance Commission (CVC), New Delhi regarding the evaluation criteria of the tender. The case has been examined and I am directed to state that the tender process should be open and transparent. The evaluation criteria for all future tenders should be defined in clear and unambiguous manner and it should be clearly specified in the tender document. This issues with the approval of competent authority.

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18.

CHAPTER - 18 FLOWCHART OF PROCUREMENT PROCESS

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