VIGILANCE AWARENESS

E&M DEPT.
SECL
PROCUREMENT OF GOODS AND CVC
GUIDELINES

Fundamental principle of Public Procurement is to

procure material of specified quality within
 specified time
 at most competitive price
 in fair, just and transparent
manner
Secured

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 YARDSTICKS
 Well defined specification including scope of
work/Supply, prequalifying & eligibility criteria.
 Need based procurement (avoid excess)
 Fair, Reasonable, Transparent procedure
 Procurement Vs Requirement
 Maintenance of competition
 Reasonableness of Rate
 Each stage of procurement should be recorded

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Works Manual
 Purchase manual of CIL :- guide line and
all purchases are to be regulated as per
procedures laid down therein

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PRE-TENDER ACTIVITIES

 Necessity & justification of work/purchase:-Establish need/

justification of work.
Gross over-designing cannot be justified on the basis of
unpredictable long term futuristic demands.

 Preparation of Indents/estimates:- Qty & Amount

Requirement to be assessed and estimate should be
realistic, Generalized specification, duly approved.
Indent: complete description (commodity, Specification,
Variance in Kind or use, composition/size/shape, Drawing
etc., Quantity with unit of Measurement etc.)

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 Scope of work/purchase/supply should be
well defined.
 Delivery period/period of completion.
 Technical and financial sanction of
competent authority.

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Tender Stage
 Tender documents should not be prepared in a
hurried manner without checking the conformity
among the schedule of items, drawings, Part
number,specifications, and contract conditions etc
 Preparation of Notice Inviting Tender:-
should contain all the relevant information such as
schedule of items, bid submission & opening
details,EMD,Security Deposit,PBG,validity of tender,
Guarantee/warranty, payment terms, penalty for delayed
completion, etc in an explicit and categorical manner.
PBG must be stipulated:-for procurement of capital
equipments and for critical items as per the 6.5.1 of
Purchase Manual of CIL.

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 Technical Parameter Sheet(TPS):-
Eligibility criteria, proveness criteria and evaluation criteria
should be incorporated in clear and unambiguous terms
 The pre-requisites of eligibility criteria are-
-Transparency
-Fairness
-Maintenance of competition

 Eligibility criteria should be well defined/notified and should

be no deviation from notified criteria during evaluation.

 No Criteria shall be used for evaluation of tenders that can

not be verified.

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 In many cases ‘tendered or higher capacity’ and
‘similar work’ are used in the bid document.
Definition of higher capacity and similar work
should be clearly defined so as to
avoid any ambiguity at the time of evaluating the
bids.
 The cut off dates regarding work experience –to
be clearly indicated.

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 TPS should also contain detailed generic technical
specifications, information to be furnished by bidder,
confirmative documents to be uploaded for
verification along with offer,documents,if any, to be
submitted with supply all in excel file.
 Approval of NIT
 Tender for the approved and financially concurred
estimates- published on e-procurement portal of CIL.
 No offline bid shall be accepted

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EVALUATION OF BID
 To ensure that evaluation is done in most transparent and
fair & open manner ,following points should be taken care of ….
• Evaluation of tenders exactly as per the notified criteria.
• Timely decision within validity period.
• Ensuring that conditions / specifications are not relaxed in
favour of contractor to whom the work is being awarded.
• Ensuring that L1 is not ignored on flimsy grounds

 Tender Evaluation: should be restricted to the notified

criteria/parameters provided in the bid document.
Check following factors
• Whether the L1 bidder meets the eligibility criteria ?
• whether the uploaded documents of L1 Bidder confirms to the
information/ declaration furnished by bidder on line ?

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EVALUATION OF BID
 All incidents of non-conformance to the notified criteria/
parameters laid down in bid document, omissions / short
comings should be detailed in the Technical scrutiny
report.
 Omissions,shortfall documents /clarification to be sought
from L-1bidder are to be indicated along with relevant
clause and communicate the same to bidder so that the
query asked should be clear to bidder .Maximum 2 chances
shall be given for this purpose.
 Rejection of offer should be with adequate justification and
not simply indicating that “the bidder not meeting eligibility
critera.”
 Acceptance and rejection of any bid should not
be arbitatory but on justified grounds as per laid
down specification and notified evaluation criteria.
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TC RECOMMENDATION
 Tender committee will examine the tender evaluation report
and give recommendation for award of work after
evaluation of reasonableness of L-1 rate as per the
provision of Manual of CIL or otherwise.
 After competent approval & financial concurrence of TCR:-
issue work order. Scanned copy of WO to be uploaded on
portal

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INSPECTION OF MATERIAL AND
ACCEPTANCE
 Inspection will be done to establish
conformance to the acceptance criteria
specified.
 In case of deviation item will be rejected

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WARRANTY FAILURE
 The extent of the contractor’s liability
(Guarantee/warranty period) is to be
spelt out clearly.
 Responsibility lies on supplier for any
defect during this period and supplier shall
remedy such defects at his own cost when
called upon to do so.
 Records and communication.

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PBG Clearance
 PBG shall be released after expiry of when
warrantee period is over and validity
period if no claim is pending

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CONSTRAINTS BEING FACED BY
E&M DEPT
 In CIL, Contract Management manual,
Manual for civil engineering works
,purchase manual and e-procurement
manual are available but For E&M works
contract, no works manual exists.
 Absence of departmental SOR for arriving
a realistic estimate for the contract works

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 Highlights

 Scope of work shall be clearly specified.

 Materials intended as replacement (against
surveyed off) should be of same capacity.If
intended for higher capacity, justification is to
be given for indenting such high capacity.
 Splitting of requirement is not advisable.
 For tenders of spare parts,part number must be
specified.
 in case of tender for spares,procurement can be
done for spares & not for assemblies as a
whole.
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 Highlights

 Works of different natures should not be

clubbed. For example spare parts of
mechanical items and electrical items are
normally not executed together as no
firms can possibly qualify for such works
with experience of ‘similar work’.no firms
can possibly qualify for such works with
experience of ‘similarwork’.

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Hiring Of Vehicles

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Requirement/Necessity

 Against PR
 Against surveyed off
 Against Approved scheme
 Preparation & approval of
Estimate
 If the period for completion of contract is expiring,
process the estimate well in adv.
 Period of contract.
 Total km running
 Fuel efficiency of the vehicle as per approved norm.
 Rate of Diesel prevailing during that period.
 Basis of rate on per day basis since estimate rate to
be indicated in the BOQ on per day basis.
 Last awarded rate(LAR) of similar types of vehicles.
 Approval of Estimate as per DOP(revised) and
Financial concurrence
Floating of Tender
 Creation of tender
 Auto evaluation logic not be activated(
since there is difference in eligibility
criteria between general bidders and PAPs
in a single tender.
 Publication of tender in CIL e-
procurement portal
 Publication in print media as per the
company’s Policy
Opening and evaluation of tender
 opening tender
 evaluation of tender
 Eligibility criteria
 Work experience
 Working capital
 DSC
 Letter of bid
 Undertaking (Affidavit)
 PAN
 Legal Status of the bidder
 GST
 Qualification Information to be filled up correctly
 Not customized for auto evaluation
 Manual evaluation to be done.
 Shortfall/clarification to be sought from bidder if any
Points to be checked
 Check for Similar Nature of work.
 Proportionate share of bidder (in case of JV )
 Check work execution is for rental value only.
 Start Date and end Date of each work experience.
 Consecutive 365 days
 Working Capital within 03 months prior to the date of
opening of tender.
 Name of the Firm on letter head
 Power of attorney for authorizing to use of DSC .
 Undertaking on a non judicial stamp paper
 Notarization date should not be prior to publication of NIT
 Declaration regarding that bidder does not have any
relative as employee of SECL.
 Bids submitted by PAP to be dealt separately
Reasonability of Rate and Award of
Work
 Reasonability of Rate
 Award of Work: If the bidder fails to
commence the work , Action to be
initiated as per provisions of NIT.
 Contract can’t be awarded to L2.
 Care must be taken to award the work
within bid validity period.
 Validity of bid should be sought for
extension if at all required, before expiry
of validity.
Execution of work
 Work to be started within 10 days of issue
of LOA.
 PSD to be deposited within 28 days of
issue of LOA
 Signing of Agreement
 Documents of the vehicle to be verified
before start of the work like age of the
vehicle, commercial registration, taxi
permit, insurance, pollution certificate,
driver’s commercial driving license etc
Measurement of work and payment
 Proper record of work (start km and end
km) in a log book to be maintained and to
be signed on daily basis .
 Hindrance register to be maintained.
 Payment may be made on monthly basis
on submission of bill by the contractor and
acceptance by the controlling officer.
Extension of contract:-
 Consent letter of the contractor agreeing
to the price fall clause.
 Within 10% of the contract value and
tendered quantity by the work awarding
authority
 More than 10% needs approval of next
higher authority.
 Extension should not be encouraged
 If at all required, proposal should be
initiated (for HQ) in advance.
 Other Contractual works

 Necessity of work:- To be properly justified

 Estimated should be prepared on the basis of
SOR as far possible and must be updated
 Approval for updated estimate cost to be taken
 For repetitive works/services, AMC to be made
 For supply items not covered in the SOR,
prevailing market/ LPP finalized through open
tender in the recent past and available in the
Area may be taken
 Analysis of rate based on practical
experience/any other logical tool may be made
for fixing of these items.
Creation and floating of tender in the
portal
 Similar nature of work to be generic not to
be tailor made for broader participation
 Tender to be floated for updated
estimated cost only.
 Publication of tender in the print media as
per policy of the company.
Opening and Evaluation
 Opening and Evaluation of the tender as
per the provisions of the NIT.
 Those uploaded documents to be
examined against which
information/declaration furnished online
by the bidder.
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