HEALTH MONITORING – BIDDING & CONTRACT MANAGEMENT BY K R M RAO DGM CONTRACTS & PROCUREMENT GAIL- PATA DATE: 02.12.2015 1
PUBLICPROCUREMENT LIMITATIONS 2
BUYING BY PUBLIC UNDERTAKINGS High lead time Complicated and lengthy outmoded procedures Delayed decision making Inability to appreciate user’s difficulties Irrelevance of negotiations for deriving maximum commercial advantage 3
BUYING BY PUBLIC UNDERTAKINGS Absence of flexibility to take advantage of market conditions Paying for inefficiencies of MSE and other preferred sectors by giving price preference Award on lowest price basis Decision makers play safe due to vigilance and public accountability 4
NECESSITY OF TENDERING Right price Equal opportunity to all Transparency Sophisticated/state of art emerging technologies Requirement of lending agency (i.e. World bank/ ADB) 5
C&P PROCEDURE MANUAL C&P DELEGATION CVC OF POWER GUIDELINES STORE PROCEDURE MANUAL 6
CONTRACT MANAGEMENT POST-AWARD PRE-AWARD CONTRACT CONTRACT MANAGEMENT MANAGEMENT 7
PRE AWARD CONTRACT MANAGEMENT Preparation of tender document Issuance of tender Opening of tender Evaluation of bids Finalisation of order 8
POST AWARD CONTRACT MANAGEMENT Receipt of un-conditional order acceptance Receipt of CPBG Signing of Contract Agreement Expediting/Follow-up Monitoring of Execution/ Performance Inspection and measurements of payments Closure of contract 9
CONTD. Hand quotation for petty orders not costing more than Rs. 100000/- Purchase by Board of officers Annual rate contracts Purchase from Government agencies Emergency purchase Petty purchase up to Rs. 75000/- 10
MODE OF TENDERING IN GAIL Purchase through DGS&D Open domestic tenders Limited domestic tender Open I nternational Competitive Bidding (ICB) Limited ICB Purchase on single tender 11
FORMS OF TENDERING TWO BID SINGLE BID SYSTEM SYSTEM 12
SINGLE BID SYSTEM FIRM SPECIFICATIONS FIRM QUANTITIES FIRM TENDER CONDITIONS TECHNO-COMMERCIAL BIDS AND PRICES ARE RECEIVED AND OPENED SIMULTANEOUSLY 13
TWO BID SYSTEM Purchase of capital items of complex and sophisticated nature No detailed and or accurate standardized specifications are available Costly and critical items Service contracts where the scope/specifications are not clea r 14
TENDERING UNDER TWO BID SYSTEM Bidders are asked to submit - Unpriced bid (Part-I) - containing technical and commercial proposals but without prices - Price bid (Part-II) - containing only prices quoted in requisite formats 15
PROCESS OF TENDERING Firming up of requirement Fixing bid evaluation criteria Fixing loading criteria (technical/commercial) Invitation of bids Receipt of bids Evaluation of bids 16
PROCESS OF TENDERING Technical/commercial queries Techno- commercial acceptance of bids Opening of price bids Comparison of quoted prices Internal approvals Award 17
EVALUATION METHODOLOGY Bidders’ evaluation criteria Technical evaluation Commercial evaluation Comparison of evaluated prices 18
BEC-TECHNICAL For Purchase/ Supply Order: Experience in similar equipment / materials / plants supplies in previous 5-7 years (depending upon criticality where applicable). For Works/ Turnkey Jobs Experience of at least one similar work of about 50% of value of work in previous 5-7 years period. 19
DOCUMENTS TO MEET TECHNICAL BEC 1. Bidder must submit complete Work Order as proof of execution inclusive with SCC, SOW 2. Completion Certificate duly certified by EIC which consists : Date of issuance a. Date of completion b. Amount of Execution c. Contract Period d. Reference of Work Order No. e. 20
BEC- FINANCIAL Turnover :Min 50 %of the annualised estimated value of work tendered for, during preceding 3 years Net worth : Positive in the last audited financial year Working capital: 10% of anualised estimated value in the last audited financial year 21
AWARD AWARD OF WORK IS DONE ON THE BASIS OF LOWEST EVALUATED TECHNO- COMMERCIALLY ACCEPTABLE OFFER BASIS AFTER DUE APPROVALS, AS PER EXISTING DELEGATION OF POWERS 22
SCOPE OF INDENTING DEPARTMENT POST AWARD PRE-AWARD Preparation of Expediting/Follow-up Pre-Tender Conference Monitoring of Execution/ Estimate Performance Scope of services Inspection and Special Conditions Measurements of Contract Payments Schedule of Rates Contract closure Technical BEC Technical Evaluation of Bids 23
SCOPE OF SERVICES/WORK Well defined Scope Detailed Specification Execution Methodology Manpower Deployment Plan, if any Requisite Qualification of Manpower, if applicable Provision of compliance to statutory requirement 24
SPECIAL CONDITIONS OF CONTRACT (SCC) Shall be read in conjunction with GCC, Specifications, Drawings and any other documents forming part of the contract Shall be deemed to over ride GCC where any portion of GCC is repugnant Payment Terms Completion Period Price Reduction Schedule Any other conditions not covered in GCC, Scope of services 25
SPECIAL CONDITIONS OF CONTRACT (SCC) GUARANTEE/WARRANTY CLAUSE DEFECT LIABILITY PERIOD RESPONSIBILITY OF VENDOR PENALTY CLAUSE TERMINATION CLAUSE TECHNICAL SPECIFICATIONS NOTE: ALL THESE CLAUSES ARE TO BE READ IN CONJUNCTION WITH GENERAL CONDITIONS OF CONTRACT. 26
SOME IMPORTANT CLAUSES OF GCC Clause no 21: Priority of contract documents Clause no. 24: Contract Performance Security Clause no 29: Failure by the contractor to comply with the provisions of the contract Clause no 32: Termination of contract Clause no 46: Payment if the contract is terminated 27
SOME IMPORTANT CLAUSES OF GCC Clause 21: In case of ambiguities or discrepancies the priority of the documents forming the contract shall be as follows unless otherwise provided in the contract: Contract Agreement Letter of Acceptance Instructions to Bidders Special Conditions of Contract General Conditions of Contract Any other document forming part of the Contract 28
SOME IMPORTANT CLAUSES OF GCC Clause 24: To submit Performance Security of 10% of the contract value within 15 days from the date of notification of award. Security in the form of DD/BG/LC Validity : 3 months beyond defect liability period Clause 29: Provides stipulation in case of failure or refusal by the Contractor to execute the work or any part thereof 29
SOME IMPORTANT CLAUSES OF GCC Clause 32: Provides stipulation in case of termination of contract for death/liquidation/bankruptcy/non-performance. Provides stipulation to put the Contractor on holiday in case of non-performance Clause 46: Provides stipulation for the payment to be made in case of termination pursuant to clause No. 29 30
Dos & Don’ts ADHERE TO GAIL’S LAID DOWN SYSTEMS AND PROCEDURES FOLLOW THE ‘DELIGATION OF POWER AT VARIOUS STAGES PREPARE REALISTIC COST ESTIMATES PRE-TENDER CONFERENCE SHOULD BE CALLED WITH PROSPECTIVE BIDDERS TO CONSIDER ACCEPTABLE VIEWS/INPUTS OF VENDORS 31
Dos & Don’ts LOADING & REJECTION CRITERIA FOR DEVIATIONS SHOULD BE CLEARLY SPELTOUT CONTRACT SPECIFICATIONS AND ACCEPTABLE STANDARDS SHOULD BE IN EXPLICIT WAY MOBILISATION ADVANCE SHOULD BE AVOIDED. IF REQUIRED IN EXCEPTIONAL CASES. SHOULD BE INTREST BEARING 32
Dos & Don’ts CLAUSES IN GCC WHICH ARE NOT APPLICABLE SHOULD BE DELETED – BONUS, TRAINING ETC. TQS/CQS TO BE ISSUED TO ALL NOT SELECTIVE VENDOR LIST SHOULD BE PERIODICALLY UPDATED THRU TRANSPERENT WAY AVOID NOMINATION AWARDS ENSURE QUOTED RATES ARE IN FIGURES AND WORDS 33
Dos & Don’ts TC MEMBERS TO PUT DATES AND NO CORRECTIONS ENSURE CONTRACTOR SUBMISSION OF APPLICABLE VARIOUS INSURANCE POLICIES MAINTAIN HINDERENCE REGISTER TO KEEP EVENT LOGS ENSURE CONTRACT EXECUTION AS PER CONDITIONS OF CONTRACT. 34
Dos & Don’ts DO NOT ALLOW ANAMOLY/AMBIGUITY IN DIFFERENT PARTS OF TENDER PERCENTAGE CHECKING OF MEASUREMENTS SHOULD BE STRICTLY FOLLOWED TIME / COST OVERRUN ISSUES CAREFULLY ADDRESSED DEVIATIONS/SUBSTITUTIONS TO BE AVOIDED 35
Dos & Don’ts MAINTAIN ALL CORRESPONDANCE TILL END OF THE CONTRACT – ARBITRATION EXTEND TIMELY SUPPORT TO LEGAL TO DEAL ARBITRATION CASES ENSURE VALIDITY OF BGS/SECURITIES 36
VENDOR PERFORMANCE APPRAISAL METHODOLOGY : Preparation of performance rating data sheet Measurement of performance Initiation of measures Implementation of corrective measures 37
VENDOR PERFORMANCE APPRAISAL EXCLUSIONS : Orders/Contracts below Rs. 7 Lakh One time Vendor/Contractor/Consultant Orders for Misc/Administrative Items/Non-stock Non- valuated Items 38
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