1. Calling of Tenders

2. Single Tender Non-PARs 10 K –Beyond Rs 5 K & upto 10 K by JAG+ Non-PA, emergencies, affecting MRO –COS/CMMRs 15 K –DRMRs 7.5 K PA, w.o. cert, & dev, COS/CMM Rs 50K PA, w. certupto limits of purch. powers

3. Single Tender SAIL SY offer upto Rs 50 L, w.o. TC –COS/CMM powers for ST –100% adv. Payment within their powers Oil/Lubs from PSUs IOC/BPC/HPC/BL for items for which the prices are admn –ST upto Rs 5 L, w.o. TC, w. Fin. concurrence –100% adv. Payment

4. Single Tender NF metals from GOI undertakings, MMTC, HZL, & HCL –ST basis upto the powers of purchase of COS, w.o. TC, w. Fin concurrence. Procurement of Cottons & Woolens from NTC/BIC on ST basis discontinued in 1995.

5. Limited Tender In normal circumstances, upto Rs 3 L In emergency, upto Rs 25L, COS/CMM For Safety items –CMMRs 25 L –COSRs 50 L –AGMRs 1 C

6. BT & OT Bulletin Tender –value less than Rs 3 L. Open Tender –Rs 3 L & above. Option clause +30% tenders > Rs 10L

7. SLT Except in emergency, & safety items, applied where est. value> Rs 3 L, with Fin concurrence & GM’s approval –Sufficient reasons exist that it is not in public interest to call for OT –Demand is urgent, addl expenditure justified –PA where it is not possible to certify that a similar article is not manufactured Vital Safety -Committee

8. DGS&D Items COSemergency purchase, w.o Fin concurrence, upto Rs 25 L, w. TC –Includes items covered by RC / RgC

9. Tender Forms Tender valueCost Upto Rs 5 LRs 150 >Rs 5 L to Rs 15 LRs 500 >Rs 15 L to Rs 50 LRs 1000 >Rs 50 LRs 2000 Tender form booklet, 100 forms Rs 15 Refund, if tender dropped/discharged before opening

10. Misc Purchase made on ST basis, & those against PAC, est value > Rs 3 L –To be dealt by TC OT/SLT/ST issued, value > Rs 3 L, –To be dropped, to be decided by TC LT, est Rs 3 L –GM’s approval necessary if value exc 15%

11. TCs All purchases > Rs 8 C require Rly Bd approval –ED, ST, & Option qty not incl Imports > Rs 2 C require Rly Bd approval –CIF value –TC recommendations duly appd by GM Where only 1 SAG, then JAG Stores member upto Rs 50L TC level on the basis of lowest acceptable offer

12. Constitution of Tender Committee Value AcceptanceStores Member Consuming Member Finance Member > 3 L and upto 8 L JAGSS JS > 8 L & upto 25 L SAGJAG SS > 25 L & upto 1Cr. SAG*SAG > 1Cr. & upto 2.5 Cr SAG*SAG > 2.5 Cr.& upto 5 Cr AGMSAG* SAG > 5 Cr. & upto 8 Cr. GMSAG* > 8 Crores Rly. Bd.SAG* * Coordinating HOD

13. Consideration of Tenders

14. ITCC –BT / LT issued to Regd firms, who furnish ITCC at time of regn, & every year. –Firms not producing ITCC to be removed –OTAll firms to submit current ITCC along with the offer –If current ITCC not available, previous to be furnished

15. Untried firms in OT EMD & SD reqd unless waived Capability to be verified by any agency 80% on tried source, 20% on untried EOInspn agency Critical materials100% on tried source

16. Splitting Quantity Vital / Critical nature of item Qty to be procured Delivery requirements Capacity of firms in zone of considerat’n Past performance of firms Orders at one rate No TP on splitting

17. Late Offer / Single Offer Late / Delayed / Post Tender Offer – to be totally rejected –Rly Bd’s appl, w. GM’s personal appl, & Fin concurrence –N.A. to late ST recd against PAC Single offer against LT –Re-Tender –Urgency certification by SAG officer>Rs 5K

18. General Non-IRS conditions of contract –COS / CMM upto Rs 1 L –Beyond Rs 1 L GM’s approval Unsolicited offers against LT / BT –Generally be ignored –In urgency, acceptance by next higher level, min JAG Single offer against OT

19. Movement by Road Personal approval of COS / CMM Payment on receipt of goods Transit risk to contractor’s account Bulk movement of steel & POL by rail Octroi to be borne by supplier

20. Payment Terms Normal –100% after receipt & acceptance –95% + 5% –Proof of Despatch (clear RR) For PSUs –COS is authorized to allow 100% on desp. For M&P spares, spl tools, & PA –COS is authorized to allow 100% on desp. Upto value of Rs 50 K

21. Payment Terms SY purchase of steel –COS/CMM powers for 100% adv payment upto Rs 50 L, ST, w.o TC Oil / Lub from PSUsIOC/BPC/HPC/BL –COS/CMM powers for 100% adv payment upto Rs 5 L, ST, w.o TC (for administered) N-F Metals from MMTC & other PSUs –COS powers for adv payment upto Rs 25 L –GM’s powers for adv payment upto Rs 2 C

22. Payment Terms Other cases of 100% adv payment –FA&CAO’s concurrence & GM’s approval DRM’s powers for 100% adv payment –Upto Rs 10 K, spares, plant, or PA Advance w. PO (GM’s powers) –Limit of Rs 3 L or 30% of PO value –To ITI, B’lore, 25% of PO value –To Hind. Cables, 50% of PO value

23. Payment Terms M & P procurement –90% + 10% –Performance guarantee –Bank Guarantee –Standby L/C