ITT_Rev_1.

19_September
September_2022

Northern Railway
Materials Management Department

“Instructions
Instructions to Tenderers (ITT)”
(ITT)
for electronic tenders invited on IREPS

Issued by:

PCMM, Northern Railway, Baroda House,

House
New Delhi-110001.

Revision_1.
Revision_1.19, Issue: September_
_2022

SAIF Digitally signed by

Signature Not
AHMAD
SAIF AHMAD
HASHMI
Ankit Digitally signed
by Ankit Sachan
Verified
Sachan 17:36:56 +05'30'
Date: 2022.09.23 Date: 2022.09.23
Digitally signed by
OM KUMAR
HASHMI 17:36:26 +05'30'
Date: 2022.09.26
13:28:16 IST
Reason: IREPS-CRIS Page 1 of 79
Location: New Delhi
 ITT_Rev_1.19_September_2022

Index
SN Subject Para
1 General Instructions 1.0
2 Qualifying Requirements of Tenderers 2.0
3 Earnest Money 3.0
4 Submission Of Offers 4.0
5 Opening Of Electronic Tenders 5.0
6 Evaluation Of Offers 6.0
7 Acceptance Of Tender 7.0
8 Cartel Formation 8.0
Special Instructions For Machinery & Plant (M&P) Items Including
9 9.0
Medical Equipments
10 Special Instructions For Signaling & Tele-Communication Items 10.0
11 Declaration For Infringement Of IPR By Tenderer/Supplier 11.0
Security Deposit (SD)/ Performance Security for Stores
12 12.0
Contracts Except M&P
13 Advice Of Dispatch Of Stores 13.0
14 Alteration Of Specifications, Patterns And Drawings 14.0
15 Liquidated Damages 15.0
16 Action In Case Of Default Of The Firm In Execution Of Contract 16.0
17 Payments 17.0
18 Fall Clause 18.0
19 Rejected Material 19.0
20 Marking Of Store 20.0
21 Packing Instructions 21.0
22 Warranty 22.0
Handling Of Rejection Of Pre-Inspected Item And Warranty
23 23.0
Rejection
24 Settlement Of Dispute/Arbitration 24.0
Annexure-1 of Bank Guarantee
Annexure-2 of No Claim Certificate
Annexure-3 of Proforma for Performance Statement
Annexure-4 of Proforma for Equipment & Quality Control
Annexure-5 of Proforma for Tender Specific Authorization
Annexure-6 of Profroma for NEFT Mandate Form

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1.0 GENERAL INSTRUCTIONS

1.1 On behalf of the President of India, Principal Chief Materials Manager,

Northern Railway, Baroda House, New Delhi, India (here in after referred
to as the Purchaser), invites electronic tenders for the supply as set forth
in the Notice Inviting Tender, ‘Techno Commercial Bid Details’ form and
‘Financial Rate Page for Supply’ form of the electronic tender uploaded
on the Indian Railways E-Procurement System website
(www.ireps.gov.in), herein after referred to as IREPS website. The
tenders are invited in terms of ‘IRS Conditions of Contract’, ‘Instructions
to Tenderers for Electronic Tenders’ and ‘Special Conditions of Contract’
uploaded on the IREPS website, and other conditions incorporated in the
tender documents. The instructions contained herein are also applicable
for all electronic tenders invited by the Store’s officers in Northern
Railway.

1.2 Electronic tender document consists of: -

a. Latest version of IRS conditions of contract.

b. Instructions to Tenderers for Electronic Tenders.
c. NIT and Tender Document.
d. ‘Submit Payment Details’ form.
e. ‘Techno Commercial Bid Details’ form, including attached
documents, if any.
f. ‘Financial Rate Page for Supply’ form.

1.3 The contract, if placed, shall be governed by

a. IRS Conditions of Contract (latest versions, along with all

correction slips) as applicable on the date of tender closing.

b. Instructions to Tenderers for Electronic Tenders.

c. NIT with all Corrigenda.

d. Purchase Order and Amendments.

(Note: In case of any contradiction among a, b & c above, the conditions

mentioned in (c) above will prevail. Further in case of any contradictions
between (c) & (d) above, (d) will prevail).

All the documents at (a) to (c) above are available on the IREPS website
(www.ireps.gov.in).

1.4 Registration of Vendors on IREPS website:

In order to participate in the electronic tenders issued by Northern

Railway, the vendors are required to obtain ‘Class-III Digital Signature
Certificate with Company Name’ from any Certifying Authority’ licensed

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by Controller of Certifying authorities (CCA).The details of the certifying

authorities are available on CCA website www.cca.gov.in. The vendors
will also have to get themselves registered on IREPS website
(www.ireps.gov.in).

Vendors can submit their login registration request online by clicking on

the New Vendors link available on Home Page of IREPS website, and
after signing the same digitally using their own Digital Signature
Certificate. Login registration to the website is available on free of charge
basis. The registration request, after due verification, will be accepted
and Password will be sent to them to their registered e-mail account.
Detailed instructions regarding registration process are available in
‘Users Manual for Vendors’ which can be accessed through Learning
Center link available on the Home page of IREPS website.

Vendors interested in participating against an electronic tender are

advised in their own interest to obtain the digital signatures, and get
themselves registered on IREPS website well in advance of the tender
closing date. Northern Railway shall not provide any assistance to the
vendor in this regard, and shall not be responsible for failure of the
vendor to submit their offer against any electronic tender on this account.

1.5 Offers received in the electronic tender box available in the IREPS
website (www.ireps.gov.in) will only be considered against electronic
tenders.

1.6 Manual offers delivered by post/fax or in person, or offers sent by e-mail

or telex shall not be accepted against electronic tenders, even if such
offers are received in time. All such offers shall be considered as invalid
offers and shall be rejected summarily, without any consideration.

1.7 The digital signature of the tenderer on the E-tender form will be
considered as confirmation that the tenderer has read, understood and
accepted all the documents referred to in Para 1.2 and 1.3 above, unless
special deviation is quoted by the tenderer in the technical deviation &
Commercial Deviation templates in ‘Techno- commercial Bid Details’
form. Deviations quoted elsewhere in the tender form shall not be
considered, and Purchaser’s decision there on shall be final and binding.

1.8 All mandatory fields in pre-designed templates of ‘Techno Commercial

Bid Details’ form and ‘Financial Rate Page for Supply’ form marked with
asterisk (*) shall be filled in by the tenderer.

1.9 The stores offered should be in accordance with stipulated drawings and
specifications as given in the ‘Techno Commercial Bid Details’ form and
‘Financial Rate Page for Supply’ form and attachments attached with the
electronic tender.

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1.10 The details of deviations, if any, from tender specification and other
conditions should be clearly indicated in the Technical Deviation and
Commercial Deviation templates provided on ‘Techno-commercial Offer’
form only. Deviations mentioned under ‘PVC and remarks’ field or
elsewhere in the offer, except in the manner mentioned above will not be
considered. Tenderers may note that conditions deviating from the
tender conditions/ description/ specifications may render the offer liable
to be ignored.

1.11 Tenderers are required to quote in the same rate unit (i.e. Number, set
etc.) as given in the tender schedule. Any deviation in this aspect shall
render the offer liable to be ignored.

1.12 Currency of Offer:

The price should be quoted only in Indian Rupees.

The offers submitted in other currencies shall not be considered.

1.13 Validity of offer:

Offer shall be kept valid for acceptance for a minimum period as

specified in tender schedule from the date of opening of tender. In case
a tenderer quotes shorter validity period, the offer shall be considered as
unresponsive and would be summarily rejected.

1.14 Tenderers are advised to confirm "Compliance to special tender

condition/ Checklist" in the template Special Conditions/ Checklist for
Bidders on ‘Techno Commercial Bid Details’ form by putting a tick mark
in the check box provided against each Special condition/Checklist, and
in case of a "No" must furnish reason for non-compliance with that
Special Condition/Check list in the remark entry box provided therein.
Tenderers may note that non-compliance to the Special
Conditions/Checklist, without stating valid reasons in the relevant remark
entry box may render the offer liable to be ignored.

1.15 Should a tenderer have a relative employed in Gazetted capacity in the

Stores Department of the Northern Railway, or in the case of a
partnership firm or company in corporate under the Indian Company Law
should a partner or a relative of the partner be employed in Gazetted
capacity in Stores Department of Northern Railway, the authority inviting
tenders shall be informed of the fact at the time of submission of tenders,
failing which the tender may be rejected, or if such fact subsequently
comes to light the contract may be rescinded.

2.0 QUALIFYING REQUIREMENTS OF TENDERERS

2.1 Items reserved to be procured from RDSO/PUs/CORE approved

sources: -

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i. The Railway reserves the right to order either the entire or the
bulk quantity on the “Approved vendors”. Status of approval of
tenderer shall be reckoned as on the date of tender opening and
not thereafter, unless it is a case of downgrading/ removal/
suspension/ banning.

ii. The quantities to be ordered on Approved Vendors will be

decided considering factors which include past (supply as well
as quality) performance, capacity, delivery requirements,
quantity under procurement, and nature of item, outstanding
order load etc. and the tender conditions.

iii. Vendors approved for developmental ordering shall be eligible

for developmental order of up to 20% of Net Procurable Quantity
[NPQ] in regular tenders.

iv. When the vendor approving agency grades vendors under two
categories, say, Part I and Part II categories, the developmental
order on unapproved/untried firm can be up to 5% of NPQ within
or outside NPQ. However, if the vendor approving agency
grades vendors only under a single category (i.e. there is no
system of approving the firms under two categories, say, Part I
and Part II categories), developmental orders can be given upto
20% of NPQ on unapproved/untried firms within the NPQ. This
will be subject to the procuring entity being prima-facie satisfied
that such firms are capable of executing the order. Such firms
must submit their credentials like Machinery & Plant, Testing
facilities, QAP, Technical Manpower, Supply performance
against earlier orders for same or similar items etc. along with
their e-offer. Failure to submit such credentials as stated above
will make the offer liable to be ignored. Such developmental
order can be placed either after assessment of their capacity and
capability by the source approving authority within 6 months of
advice from the purchase authority or with the condition that bulk
supply will start after approval of prototype by nominated agency
as mentioned in the Purchase Order.

v. Where there are not more than three Indian suppliers

categorized as Approved vendor for the tendered item,
developmental vendors can be considered for placement of bulk
order without any quantity restrictions. However, while
considering such vendors, factors including past performance,
capacity, and delivery requirements, quantity under
procurement, nature of items, outstanding order load, etc. shall
be considered in a transparent manner subject to rates being
reasonable. Quantity allocation among eligible vendors shall be
based on pre-decided tender criteria. Such orders shall be
treated as Bulk Orders.

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A Supplier or bidder shall be considered to be from India if (i)

the entity is incorporated in India, or (ii) a majority of its
shareholding or effective control of the entity is exercised from
India, or (iii) more than 50% of the value of item being supplied
has been added in India.

vi. Where there is no approved vendor for an item, developmental

vendors can be considered for placement of bulk order without
any quantity restrictions. However, while considering such
vendors, factors including past performance, capacity, delivery
requirements, quantity under procurement, nature of item,
outstanding order load etc. shall be considered in a transparent
manner, subject to rates being reasonable. Quantity allocation
among eligible vendors shall be based on pre-decided tender
criteria.

vii. Authorized dealers/ distributors need to quote with Tender

specific authorization from the approved vendors/developmental
vendors/Manufacturers failing which offer will be summarily
rejected. While issuing such authorizations the approved
vendors must ensure that these authorized dealers/distributors
are in a position to raise inspection requests on the online portal
of inspecting agencies viz. RITES, RDSO as the case may be.

2.2 Other Items which are not reserved to be procured from

RDSO/PUs/CORE approved sources:-

i. Bulk order will be placed on the manufacturer or its authorized

agent. The manufacturer firm must have satisfactorily executed
at least one single purchase order for a minimum of 20 percent
of the total tender quantity or many small orders totaling to 20%
or more of the tender quantity of Zonal Railways/ PUs/ CORE
for the tendered item [OR] for the items having same
description, but of different sizes/ ratings/capacities during 5
previous financial years and current financial year up to date of
tender opening. Purchase Officers can consider such firms for
bulk order duly keeping in view the overall performance of the
firm.

ii. All other offers, who are otherwise not eligible for regular bulk
order(s) due to their not meeting with the eligibility conditions
mentioned in Para 2.2(i) above and provided they are able to
demonstrate their Capacity-cum Capability to manufacture the
tendered item, can be considered only for developmental order
up to 20 percent of the net procurable quantity. For this
purpose, they should submit along with their offer, documented
past performance reports of same or similar items of equivalent
rating or equivalent performance parameters, details of M&P,

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testing facilities, QAP (if available), technical manpower

available with them, registration for same/similar item(s) with
other Government agencies or PSUs etc. or any other details as
may be warranted as per the technical specification and
drawing. Such tenderers are to note that non submission of
such documents as per Annexure shall be taken as their not
having any such past performance and/or capacity, and their
offer shall be considered further as per extant rules and no back
reference in this regard will be made to them.

iii. The onus of submission of requisite documents (such as copies

of Receipt note for stock items, receipt & acceptance for Non-
stock items, Capacity & capability credential, M&P required for
manufacturing tendered item, T&P, Technical manpower, in
house testing facilities, MSE credentials, financial credential
PAN no/ ITCC etc.) along with their e-offer regarding 'Bulk order'
or 'Developmental order' lies with the tenderers. In case the
tenderers do not submit the requisite documents as detailed
above along with their e- offer, the tender will be decided on the
basis of their past supply performance records as available with
NR [ if any].

iv. Only Manufacturers or their authorized dealers/ distributors

need to quote with Tender specific authorization from the
manufacturers failing which offer will be summarily rejected.

v. In case tenderers participates as an authorized agent, then the

performance as required above shall be that of the Principal,
authorizing the agent. It may so happen that the agent has
credentials of past supply for a different Principal but this will not
be considered as performance for placing bulk order in case of
change of Principal.
2.3 Items reserved to be procured from OEM: -

OEMs or their Authorized Agent/dealers with valid authorization from

OEM can also quote on behalf of OEM provided the OEM takes full
responsibility for the quality of the material including warranty obligations
and the inspection against Railway’s orders carried out at the
manufacturer’s premises.
2.4 Mandatory considerations as per Government of India guidelines: -
2.4.1 MSE Consideration:

i. Procurement of items reserved from Micro & Small Enterprises

(MSEs).

The Public Procurement Policy envisages extending certain benefits/

preferential treatment to MSEs and making efforts for development of
appropriate vendors and enhancement of their participation in

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government procurements. In order to avail themselves of such benefits

and preferential treatment, the MSEs must be registered with any of the
following: -

(a) UDYAM (UDYAM Registration Certificate).

(b) Udyog Aadhar Memorandum (valid up to 30.06.2022 or as extended

by Ministry of Ministry of Micro, Small & Medium Enterprises from
time to time), for the tendered item(s) will only be considered. MSEs
registered with any one of the above agencies must attach (in the
template–Attach Documents on “Techno–Commercial Bid Details
form, as canned copy in PDF format) their current & valid registration
certificate for the tendered item along with their offer, failing which
the offer is liable to be ignored.

ii. Benefit/Preferential treatment to MICRO & SMALL

ENTERPRISES (MSEs)
A. Tender sets shall be provided free of cost to MSEs
registered for the tendered item with agencies mentioned
at Para (i) above.
B. MSEs registered for the tendered item, with the agencies
mentioned at Para (i) above, will be exempted from
payment of Earnest Money.

C. In tenders, participating MSEs, as given at Para 3.3.1 (b)

subsequently, quoting a price within price band of L-1 +
15% shall be allowed to supply a portion of the requirement
by bringing down their price to L-1 price in a situation
where L-1price is from someone other than MSE and such
MSEs can together be ordered up to 25% value out of the
net procurable quantity. Out of total 25% share of MSEs,
sub-target for procurement from MSEs owned by SC/ST
shall be 4% of NPQ and for MSEs owned by women, the
sub-target will be 3% of the NPQ, out of the total 25%.

D. MSEs, who are interested in availing themselves of these

benefits, will enclose with their offer the proof of their being
MSE registered with any of the agencies mentioned in para
2.4.1(i) specified by Ministry of MSME. Failing the above,
offers may not be considered of benefits detailed in MSE
notification of Government of India dated 23.03.2012"
E. MSE firms will please note that in case of order being
awarded to them, they will have to deposit Security Deposit
as per clause 12.0.
2.4.2 Make in India Consideration:
Provisions for procurement under Public procurement (Preference to
make in India)policy
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Following provisions will be applicable for items to be procured under

Public Procurement (Preference to Make in India) order 2017
dt.15.6.2017 and Public Procurement (Preference to Make in India)
order 2017 – Revision dt. 04.06.2020.

1. Definitions: For the purpose of this Order

A. ‘Local content’ means the amount of value added in India,

which shall be the total value of the item procured
(excluding net domestic indirect taxes) minus the value of
imported content in the item (including all customs duties)
as a proportion of the total value, in percent.

B. ‘Class-I local supplier’ means a supplier or service

provider, whose goods, services or works offered for
procurement, has local content equal to more than 50%, as
defined under this Order.

C. ‘Class-II local supplier’ means a supplier or service

provider, whose goods, services or works offered for
procurement, has local content more than 20% but less
than 50%, as defined under this Order.

D. ‘Non – Local supplier’ means a supplier or service provider,

whose goods, services or works offered for procurement,
has local content less than or equal to 20%, as defined
under this Order.

E. The Bidders offering imported products will fall under the

category of non-local suppliers. They can't claim
themselves as Class-I local suppliers/Class-II local
suppliers by claiming the services such as transportation,
insurance, installation, commissioning, training and after
sales service support like AMC/CMC etc. as local value
addition.

F. ‘L1’ means the lowest tender or lowest bid or the lowest

quotation received in a tender, bidding process or other
procurement solicitation as adjudged in the evaluation
process as per the tender or other procurement solicitation.

G. ‘Margin of purchase preference’ means the maximum

extent to which the price quoted by a “Class-I local
supplier” may be above the L1 for the purpose of purchase
preference.

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H. ‘Nodal Ministry’ means the Ministry or Department

identified pursuant to this order in respect of a particular
item of goods or services or works.

I. ‘Procuring entity’ means a Ministry or department or

attached or subordinate office of, or autonomous body
controlled by, the Government of India and includes
Government companies as defined in the Companies Act.

J. ‘Works’ means all works as per Rule 130 of GFR – 2017,

and will also include ‘turnkey works’.

K. Nodal Ministry/ Department may prescribe only a higher

percentage of minimum local content requirement to
categorize a supplier as 'Class-I local supplier'/ 'Class-Il
local supplier'. For the items, for which Nodal
Ministry/Department has not prescribed higher minimum
local content notification under the Order, it shall be 50%
and more than 20% for 'Class-I local supplier'/ 'Class-Il
local supplier' respectively.

2. Eligibility of ‘Class-I local supplier’/ ‘Class-II local supplier’/

‘Non-local suppliers’ for different types of procurement

A. In procurement of all goods, services or works in respect of

which the Nodal Ministry/ Department has communicated
that there is sufficient local capacity and local competition,
only ‘Class-I local supplier’, as defined under the Order,
shall be eligible to bid irrespective of purchase value.

B. In procurement of all goods, services or works, not covered

by sub-para 2(A) above, and with estimated value of
purchases less than Rs. 200 Crore, in accordance with
Rule 161(iv) of GFR, 2017, Global tender enquiry shall not
be issued except with the approval of competent authority
as designated by Department of Expenditure. Only ‘Class-I
local suppliers’ and ‘Class-II local suppliers’, as defined
under the Order, shall be eligible to bid in procurements
undertaken by procuring entities, except when Global
tender enquiry has been issued. In global tender enquiries,
‘Non-local suppliers’ shall also be eligible to bid along with
‘Class-I local suppliers’ and ‘Class-II local suppliers’.

C. For the purpose of this Order, works includes Engineering,

Procurement and Construction (EPC) contracts and
services include System Integrator (SI) contracts.

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3. Purchase Preference

A. Subject to the provisions of this Order and to any specific

instructions issued by the Nodal Ministry or in pursuance
of this Order, purchase preference shall be given to
‘Class-I local supplier’ in procurements under taken by
procuring entities in the manner prescribed hereunder.

B. In the procurement of goods or works, which are covered

by para 2(B) above and which are divisible in nature,
‘Class-I local supplier’ shall get purchase preference over
‘Class-II local supplier’ as well as ‘Non-local supplier’ ,as
per the following procedure.

i. Among all qualified bids, the lowest bid will be termed

as L1. If L1 is ‘Class-I local supplier’, the contract for
full quantity will be awarded to L1.

ii. If L1 bid is not a ‘Class-I local supplier’, 50% of the

order quantity shall be awarded to L1. Thereafter, the
lowest bidder among the ‘Class-I local suppliers’ will
be invited to match the L1 price for the remaining 50%
quantity subject to the Class-I local supplier’s quoted
price falling within the margin of purchase preference,
and contract for that quantity shall be awarded to such
‘Class-I local supplier’ subject to matching the L1 price.
In case such lowest eligible ‘Class-I local supplier’ fails
to match the L1 price or accepts less than the offered
quantity, the next higher ‘Class-I local supplier’ within
the margin of purchase preference shall be invited to
match the L1 price for remaining quantity and soon,
and contract shall be awarded accordingly. In case
some quantity is still left uncovered on Class-I local
suppliers, then such balance quantity may also be
ordered on the L1 bidder.

C. In the procurements of goods or works, which are covered

by para 2(B) above and which are not divisible in nature,
and in procurement of services where a bid is evaluated
on price alone, the ‘Class-I local supplier’ shall get
purchase preference over ‘Class-II local supplier’ as well
as ‘Non-local supplier’, as per the following procedure.
I. Among all qualified bids, the lowest bid will be termed
as L1. If L1 is ‘Class-I local supplier’, the contract will
be awarded to L1.

ii. If L1 is not ‘Class-I local supplier’, the lowest bidder

among the ‘Class-I local suppliers’ will be invited to
match the L1 price subject to the Class-I local

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supplier’s quoted price falling within the margin of

Purchase preference, and the contract shall be
awarded to such ‘Class-I local supplier’ subject to
matching the L1 price.

iii. In case such lowest eligible ‘Class-I local supplier’ fails

to match the L1 price, the ‘Class-I local supplier’ with
the next higher bid within the margin of purchase
preference shall be invited to match the L1 price and
so on and contract shall be awarded accordingly. In
case none of the ‘Class-I local supplier’, within the
margin of purchase preference matches the L1 price,
the contract may be awarded to the L1 bidder.

D. “Class-II local supplier” will not get purchase preference in

any procurement, under taken by procuring entities.

4. Exemption of small purchases: Not withstanding anything

contained in paragraph 2 and 3 above, procurements where the
estimated value to be procured is less than Rs. 5 lakhs shall be
exempt from this Order.

5. Minimum local content: The local content requirement to

categorize a supplier as ‘Class-I local supplier’/ ‘Class-II local
supplier’/ ‘Non-local supplier’ shall be as defined in the para 1
above. No change is permissible on this account.

6. Margin of Purchase Preference: The margin of purchase

preference shall be 20%.

7. Requirement of specification in advance: The minimum local

content, the margin of purchase preference and the procedure
for preference to Make in India shall be specified in the notice
inviting tenders or other form of procurement solicitation and
shall not be varied during a particular procurement transaction.

8. Verification of local content:

A. The ‘Class-I local supplier’/ ‘Class-II local supplier’ at the

time of tender, bidding or solicitation shall be required to
indicate percentage of local content and provide self-
certification that the item offered meets the local content
requirement for ‘Class-I local supplier’/ ‘Class-II local
supplier’, as the case may be. They shall also give details
of the location(s) at which the local value addition is made.

B. In case of procurement for a value in excess of Rs. 10

Crores, the ‘Class- I local supplier’/ ‘Class-II local supplier’
shall be required to provide a certificate from the statutory

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auditor or cost auditor of the company (in the case of

companies) or from a practicing cost accountant or
practicing chartered accountant (in respect of suppliers
other than companies) giving the percentage of local
content.

C. Decisions on complaints relating to implementation of this

Order shall be taken by the competent authority, which is
empowered to look into procurement related complaints
relating to the procuring entity.

D. Nodal Ministries may constitute committees with internal

and external experts for independent verification of self-
declarations and auditor’s/ accountant’s certificates on
random basis and in the case of complaints.

E. Nodal Ministries and procuring entities may prescribe fees

for such complaints.

F. False declarations will be in breach of the code of integrity

under Rule 175(1)(i)(h) of the General Financial Rules for
which a bidder or its successors can be debarred for up to
two years as per Rule151(iii) of the General Financial
Rules along with such other actions as may be
permissible under law.

G. A supplier who has been debarred by any procuring entity

for violation of this Order shall not be eligible for
preference under this Order for procurement by any other
procuring entity for the duration of the debarment. The
debarment for such other procuring entities shall take
effect prospectively from the date on which it comes to the
notice of other procurement entities, in the manner
prescribed under paragraph 8(H) below.

H. The Department of Expenditure shall issue suitable

instructions for the effective and smooth operation of this
process, so that:

i. The fact and duration of debarment for violation of this

Order by any procuring entity are promptly brought to
the notice of the Member-Convener of the Standing
Committee and the Department of Expenditure through
the concerned Ministry/Department or in some other
manner;

ii. On a periodical basis such cases are consolidated and

a centralized list or decentralized lists of such suppliers

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with the period of debarment is maintained and

displayed on website(s);

iii. In respect of procuring entities other than the one

which has carried out the debarment, the debarment
takes effect prospectively from the date of uploading
on the website(s) in such a manner that ongoing
procurements are not disrupted.

9. If a Nodal Ministry is satisfied that the Indian suppliers of an

item are not allowed to participate or compete in procurements
by any foreign governments, it may, if it deems appropriate,
restrict or exclude bidders from that country from eligibility for
procurement of that item and/ or other items relating to that
Nodal Ministry. A copy of every instruction or decision taken in
this regard shall be sent to the Chairman of the Standing
Committee, i.e., Secretary, Department for Promotion of
Industry and Internal Trade.

10. Reciprocity Clause:

i. When a Nodal Ministry/Department identifies that Indian

suppliers of an item are not allowed to participate and/ or
compete in procurement by any foreign government, due to
restrictive tender conditions which have direct or indirect
effect of barring Indian companies such as registration in the
procuring country, execution of projects of specific value in
the procuring country etc., it shall provide such details to all
its procuring entities including CMDs/CEOs of PSEs/PSUs,
State Governments and other procurement agencies under
their administrative control and GeM for appropriate
reciprocal action.
ii. Entities of countries which have been identified by the Nodal
Ministry/Department as not allowing Indian companies to
participate in their Government procurement for any item
related to that Ministry/ Department shall not be allowed to
participate in Government procurement in India for all items
related to that nodal Ministry/Department, except for the list
of items published by the Ministry/Department permitting
their participation.

iii. The stipulation in (ii) above shall be part of all tenders invited
by the Central Government procuring entities stated in (i)
above. All purchases on GeM shall also necessarily have the
above provisions for items identified by nodal Ministry/
Department.

iv. The term 'entity' of a country shall have the same meaning
as in the FDI Policy of DPIIT as amended from time to time.

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11. Specifying foreign certifications/ unreasonable technical

specifications/ brands/models in the bid document is restrictive
and discriminatory practice against local suppliers. If foreign
certification is required to be stipulated because of non-
availability of Indian Standards and/or for any other reason, the
same shall be done only after written approval of Secretary of
the Department concerned or any other Authority having been
designated such power by the Secretary of the Department
concerned.

2.4.3 Restrictions of procurement from the bidders from countries

sharing land borders with India

i. Any bidder from a country which shares a land border with India
will be eligible to bid in this tender only if the bidder is registered
with the Competent Authority.

ii. “Bidder” (including the term ‘tenderer’, ‘consultant’ or ‘service

provider’ in certain contexts) means any person or firm or
company, including any member of a consortium or joint venture
(that is an association of several persons, or firms or
companies), every artificial juridical person not falling in any of
the descriptions of bidders stated herein before, including any
agency branch or office controlled by such person, participating
in a procurement process.

iii. “Bidder from a country which shares a land border with India” for
the purpose of this Order means:-

a. An entity incorporated, established or registered in such a

country; or
b. A subsidiary of an entity incorporated, established or
registered in such a country; or
c. An entity substantially controlled through entities
incorporated, established or registered in such a country; or
d. An entity whose beneficial owner is situated in such a
country; or
e. An Indian (or other) agent of such an entity; or
f. A natural person who is a citizen of such a country; or
g. A consortium or joint venture where any member of the
consortium or joint venture falls under any of the above

iv. The beneficial owner for the purpose of (iii) above will be as
under;

1. In case of a company or Limited Liability Partnership, the

beneficial owner is the natural person(s), who, whether
acting alone or together, or through one or more juridical

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person, has a controlling ownership interest or who

exercises control through other means.
Explanation -

a. “Controlling ownership interest” means ownership of or

entitlement to more than twenty-five per cent of shares
or capital or profits of the company;

b. “Control” shall include the right to appoint majority of

the directors or to control the management or policy
decisions including by virtue of their shareholding or
management rights or shareholders agreements of
voting agreements’

2. In case of a partnership firm, the beneficial owner is the

natural person(s) who, whether acting alone or together, or
through one or more juridical person, has ownership of
entitlement to more than fifteen percent of capital or profits of
the partnership;

3. In case of an unincorporated association or body of

individuals, the beneficial owner is the natural person(s),
who, whether acting alone or together, or through one or
more juridical person, has ownership of or entitlement to
more than fifteen percent of the property or capital or profits
of such association or body of individuals;

4. Where no natural person is identified under (1) or (2) or (3)

above, the beneficial owner is the relevant natural person
who holds the position of senior managing official;

5. In case of a trust, the identification of beneficial owner(s)

shall include identification of the author of the trust, the
trustee, the beneficiaries with fifteen percent or more interest
in the trust and any other natural person exercising ultimate
effective control over the trust through a chain of control of
ownership.

v. An Agent is a person employed to do any act for another, or to

represent another in dealings with third person.

Certificate to be provided by the Tenders with their bid-

“I have read the clause regarding restrictions on procurement from a bidder of a
country which shares a land border with India. (Please strike out, whichever is not
applicable)

(a) I certify that I am not from such a country; or

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(b) I am from such a country and have been registered with the Competent
Authority. I hereby certify that I fulfill all requirements in this regard and
is eligible to be considered. Evidence of valid registration by the
Competent Authority is attached.”

2.4.4 For items where only Class-I local suppliers are eligible to participate in
the tender

In keeping with the Public Procurement (Preference to Make in India)

Order, 2017 as amended and in terms of Clause 2.4.2 above, Public
Procurement of this item is restricted to ‘Class-I local suppliers’ only.
Thus, only ‘Class-I local supplier’ as defined under the Public
Procurement (preference to Make in India) Order, 2017, as amended
shall be eligible to bid in this tender. Offers from vendors who do not
quality to be ‘Class-I local supplier’ shall be summarily rejected and,
therefore, such vendors should not participate in the tender. In case any
vendor who does not qualify to be a ‘Class-I local supplier’ for the
tendered item participates in the tender, such a bidder does so at its
own risk and cost and Railways shall not be liable for any loss or
damage caused to the bidder on this account.

2.4.5 For items where only Class-I and Class-II local suppliers are eligible to
participate in the tender

In keeping with the Public Procurement (preference to Make in India)

Order, 2017 as amended and in terms of Clause 2.4.2 above, Public
Procurement of this item is restricted to ‘Class-I and Class-II local
suppliers’ only. Thus, only ‘Class-I and Class-II local suppliers’ as
defined under the Public Procurement (preference to Make in India)
Order, 2017, as amended shall be eligible to bid in this tender. Offers
from vendors who do not quality to be ‘Class-I or Class-II local
suppliers’ shall be summarily rejected and, therefore, such vendors
should not participate in the tender. In case any vendor who does not
qualify to be a ‘Class-I or Class-II local supplier’ for the tendered item
participates in the tender, such a bidder does so at its own risk and cost
and Railways shall not be liable for any loss or damage caused to the
bidder on this account.

2.4.6 The status of a bidder as a ‘Class-I/Class-II local supplier’ shall be

ascertained based on the following details/documents, as applicable,
furnished at the time of submission of bid.

a. The local content declared by the bidder in the earmarked field

on IREPS (which shall be treated to be the self-certification by
the bidder, required in terms of sub-clause 8(A) of clause 2.4.2
above). However, any downward revision in the local content
subsequent to tender opening, if intimated by the bidder, will
also be taken into consideration for the purpose of evaluation of
the bid.

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b. A tender specific Certificate (for procurement value > 10 Cr.) in

terms of sub-clause 8(B), of clause 2.4.2 above). Such a
certificate should inter-alia include the following details:

i. Name and address of the bidder.

ii. Quantum of ‘Local Content’ in the item offered by the bidder.
iii. Details of the location(s) at which the local value addition is
made.

c. Details of the location(s) at which the local value addition is

made (in cases of self- certification).

d. In case of downward revision of local content subsequent to

tender opening, the bidder shall be liable to be taken up as per
clause 2.4.2 – 8(F) above. Additionally, EMD of the bidder shall
be forfeited.

2.5 Other details:-

i. The tenderer shall clearly indicate whether he is registered with

the office of PCMM/Northern Railway for supplying the quoted
item, and if so, he must mention his registration number along
with monetary limit, if any, under remarks column in the
‘Financial Rate Page for Supply’ form. If the tenderer is
registered with UDYAM, he must also attach in the Attach
Documents template on ‘Techno Commercial Bid Details’ form a
scanned copy in PDF format, of valid UDYAM certificate
showing monetary limit and the items for which registered. In
case the tenderer is approved by RDSO/ PUs/CORE for the
quoted item, he must attach in the Attach Documents template
on ‘Techno Commercial Bid Details’ form a scanned copy in
PDF format of the registration/approval certificate.

ii. If the tenderer is not registered with Northern Railway or

UDYAM, or is not an approved source for the tendered item with
RDSO/ PUs/CORE, heshall provide a satisfactory evidence
acceptable to the Purchaser by attaching scanned copies of
such documents in PDF format in the Attach Documents
template on ‘Techno-commercial Bid Details’ form to show
that:-

a. He is an established manufacturer, who regularly

manufactures the items offered and has adequate technical
knowledge and practical experience;

b. He has adequate financial stability and status to meet the

obligations under the contract for which he is required to

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submit a copy of the report from a recognized bank or a

financial institution;

c. He has adequate plant and manufacturing capacity to

manufacture the items offered and supply within the delivery
schedule offered by him;

d. He has established quality control system and organization

to ensure that there is adequate quality control at all stages
of the manufacturing process.

iii. If the tenderer is himself not the manufacturer of the item

offered by him, he shall be duly authorized by the manufacturer
of such item. Such tenderers must enclose with their offer a
certificate of authorization from the manufacturer, as per
Performa given in Annexure-5 of this document, to participate
in the specific electronic tender being submitted.

iv. The OEM/Authorized Dealers/Agents must comply the following

conditions, failing which their offer(s) will be ignored:

a. Authorized dealers/ distributors need to quote with Tender

specific authorization from the approved
vendors/developmental vendors/Manufacturers failing which
offers will be summarily rejected.

b. In a tender, either the authorized agent/dealer on behalf of

the Principal/OEM or the Principal/OEM itself can bid but
both cannot bid simultaneously for the same item in the
same tender.

c. If an authorized agent/dealer submits bid on behalf of the

Principal/OEM, the same agent/dealer shall not submit a bid
on behalf of another Principal/OEM in same tender for the
same item/product.

v. For the purpose of Para 2.5 the tenderer should additionally

submit: -

a. A performance statement in the Performance Statement

template on ‘Techno-commercial Bid Details’ form by
entering a list of major supplies effected in the recent past, of
the items offered by him, giving details of the purchaser's
name and address, order no. and date, quantity supplied
and whether the supply was made within the delivery
schedule. Alternatively, tenderers can also create such
performance statement in PDF format separately as per the
format given in Annexure-3, which can be attached in the

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Attach Documents template of ‘Techno-commercial Bid

Details’ form.
b. A statement in PDF format indicating details of equipment,
staff employed and quality control measures, as per the
format given in Annexure-4 of this document, attached in
the Attach Documents template of ‘Techno-commercial Bid
Details’ form.
vi. Tenderers not furnishing the requisite information may note that
their offer is liable to be ignored.
3.0 EARNEST MONEY
3.1 Tenderers are required to deposit Earnest Money equivalent to the
amount mentioned in the tender document. Tenderers not submitting
Earnest Money should clearly indicate in their offer the reasons for the
same, and failure to do so will be taken as unwillingness on their part to
deposit the Earnest Money and such offers without requisite Earnest
Money will be summarily rejected.
3.2 Tenderer not falling in the exempted categories as mentioned in the
subsequent para shall submit the Earnest Money only through Payment
Gateway Facility on the IREPS Portal. Earnest Money shall be
accepted only via the online system as available on IREPS portal. No
other mode of the submission of Earnest Money is acceptable except in
case of Global Tenders.
3.3 There shall be no exemption from Submission of Earnest Money for any
tender or by any tenderer except following:

a. Limited Tender Cases (including Single Tender and Global

Limited Tender) of value limit up to Rs. 25 (Twenty-five) Lakh.
b. Micro & Small Enterprises (MSEs) registered for the tendered
item.
c. Other Railways and Government Departments.
d. Indian Ordinance Factories.
e. PSUs owned by the Ministry of Railways and PSUs for the
group of items that are manufactured by them.
f. Vendors registered with Railways for the trade group of the item
tendered.
g. Vendors appearing on the approved vendor list of
RDSO/PUs/CORE, subject to approval status being valid on the
date of tender closing.
h. Vendors registered with Railways for supply of medicine,
medical equipments and consumables shall be exempted from
submission of EMD for these items.
i. In tender issued against PAC, OEM in whose favor PAC has
been issued shall be exempted from submitting EMD. KVIC
shall be exempted from EMD for items supplied by them.
(NB: If authorized agent participate on behalf of OEM/Vendors
appearing on the approved vendor list of RDSO/PUs/CORE, such

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authorized agent can’t claim EMD exemption based on its own or

its OEM /Approved vendors MSE certificate).
3.3.1 Tenderers falling under any of the above listed exempted categories
and claiming exemption will have to follow all of the following steps to
avail the exemption from submission of Earnest Money:
a. Tenderers shall search for the relevant tender using the links (a)
quick search or (b) advance search provided in their home page
after logging into the IREPS system using their valid Username,
Password & Digital Signature.
On retrieving the tender details, they shall click on the Submit
Payment Details icon under Actions column to access the
Submit Payment Details Page. The tenderers shall then choose
the appropriate exemption category available under Submit
EMD link on the Submit Payment details page. The tenderer
shall thereafter digitally sign and submit the details by clicking
the Sign & Submit button available on the page. Tenderers may
please note that ‘Submit EMD’ link becomes available only after
the tenderer has submitted tender document cost (or has
chosen the exemption category for tender document cost, if
applicable).
b. The tenderer will have to attach scanned copy of requisite
document viz. the current and valid registration certificate issued
by any of the authorities detailed at Para 2.4.1 (i) above in
support of their MSE status for the tendered item.
(NB: In two Packet Bidding System, such document must
be uploaded at the time of Techno-Commercial bid).
c. All vendors, exempted from submitting EMD, as per Para 3.3
above, irrespective of the type of tender, i.e., Single, Limited or
Open, shall be required to sign a Bid Securing Declaration as
per proforma available on bidders interface for payment of EMD
on IREPS Portal.
d. Amount of EMD will be as follows:

Estimated Value
EMD (rounded off to the nearest higher Rs.
of
10 (ten).
Tender
@ 2% of the estimated value of the tender.
Up to Rs. 25 Lakh EMD will be NIL in case of Limited, Single,
Global Limited Tenders.
Above Rs. 25 Lakh
@ 2% of the estimated value of the tender
and
subject to max Rs. 20 Lakh
up to Rs. 50 Crore
Above Rs. 50 Crore Rs. 50 Lakh

3.4 Offers of tenderers, who do not submit Earnest Money, and are also not
exempted from submission of Earnest Money shall be summarily
rejected.

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3.5 The Purchaser reserves the right to forfeit the Earnest Money Deposit if
the tenderer withdraws or revises his offer within the validity period. The
Purchaser also reserves the right to forfeit the Earnest Money deposit, if
the Bidder fails to deposit Security Money in terms of Clause-12.

3.6 No interest shall be payable by the purchaser on the Earnest Money.

3.7 EMD shall be refunded when any one of the following conditions is
satisfied.

(a) After finalization of tender to unsuccessful bidder(s).

(b) Validity of offer expires and validity extension is not sought.
(c) Validity of offer expires and bidder refuses to extend validity
of offer.
(d) After finalization of the tender successful bidder submits
required SD.

EMD of bidders or tenderers shall be released immediately after it is

due for release as per above criterion. The Purchaser may initiate the
process of release just after the EMD is due for release.

3.8 The Earnest Money of the successful tenderer may be adjusted towards
Security Deposit and in case where such tenderer furnishes Security
Deposit as per the tender conditions, EMD will be refunded after receipt
of full Security Deposit.

3.9 (i) All vendors, exempted from submitting EMD, as per Para 3.3 above,
irrespective of the type of tender, i.e., Single, Limited or Open, shall be
required to sign a Bid Securing Declaration as per proforma available
on bidders interface for payment of EMD on IREPS Portal.

(ii) The bidder(s), who stand disqualified as per the declaration

furnished by them in Bid Securing Declaration, will not be exempted
from submitting EMD and SD for all tenders published during the period
of their disqualification.

(iii) The disqualification procedure and all correspondence thereof shall

be online and digital. Updation on IREPS shall be done by minimum
JAG level officer dealing with vendor registration in the Railway.

(iv) The conditions detailed in Para 3.9 shall not be applicable to Govt.
Departments/ ordinance factories/ other Railways/ Railway PSUs/ KVIC
and matter shall be taken up with them departmentally/ administratively.
3.10 No traders shall be eligible for any MSE benefits.

4.0 SUBMISSION OF OFFERS

4.1 Procedure for submission of electronic offers

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4.1.1 The tenderers should visit IREPS website at the address

www.ireps.gov.in and submit online offers after logging into the website
using their login ID, Password and Digital Signature. Tenderers can
submit their online offers only after they have submitted tender
document cost (or have chosen the exemption category for tender
document cost, if applicable). Tenderers can submit on line electronic
offers after filling the details in the following pre-designed templates.

i. Submit Payment Details.

ii. Techno-Commercial Bid Details (Bid Process page)

1. Eligibility Criteria (Elig.*)

2. Terms and Conditions (T&C*)

3. Commercial Deviation (Com. Dev.)

4. Technical Deviation (Tech. Dev.)

5. Special Conditions & Check List (Check List*)

6. Technical Specifications (Tech. Spec.)

7. Performance Statement (Perf.)

8. Attach Documents (Attach Doc.)

9. Financial Offer (Fin. Offer)

Templates named above super scribed with asterisk (*) will require
digital signatures for submission.

Tenderers shall be able to access the ‘Financial Offer’ link for entering
into the ‘Financial Rate Page for Supply’ only after they fill in the details
in the asterisk (*) marked templates on the ‘Techno Commercial Bid
Details’ form and digitally sign and submit the same.

Tenderers may note that the IREPS software is continuously being

upgraded and the forms referred above may be subject to changes.
Tenderers are advised to keep themselves updated with the latest
changes, by referring to the latest versions of user manuals available on
the website, and by taking note of the messages sent by the IREPS
administrator from time to time. Tenderers should also make
themselves fully acquainted with all the available templates/forms,
before they submit their offer. No claim shall be entertained from a
tenderer, on account of non-familiarity with the any of the templates and
forms available on the IREPS website.

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4.1.2 The electronic offers shall be digitally signed by the tenderer. To ensure
confidentiality and security, the offers will be auto encrypted using
highest level of digital security before transmission on internet channels.
Electronic such offers are received in a time locked electronic tender
box, where they remain encrypted till stipulated tender opening date/
time. All the details of the digital certificate as obtained from the C.A.,
showing the identity of the person who is authorized to sign and submit
an electronic offer will get auto attached along with the electronic offer,
and can be verified by Northern Railway at a later stage, to establish
the identity of the person who has digitally signed and submitted his
electronic offers. This is similar to an authenticated copy of the
document which authorizes the signatory to commit on behalf of the
firm.

4.1.3 Every online tender submitted duly signed with a valid Digital Signature
Certificate and received before closing date & time of tender shall be
acknowledged by the system and HTML receipt will be generated
indicating tender ID as well as date and time of receipt of the tender.

4.1.4 Electronic offer once digitally signed and submitted for one or all the
item/ items cannot be accessed or revised later and shall remain fully
secured confidentially stored into time locked E-tender box in an
encrypted form till the due date and time of opening.

4.1.5 Revised bids: Vendors can submit a revised commercial offer

(“Financial Rate Page for Supply’ form) any time before the stipulated
closing date and time and in such case the last revised offer submitted
at a later time and date shall be considered as the offer, superseding all
the previously submitted offers for that item/ items of the tender.

4.1.6 Alternative bids: The vendors are also allowed to submit alternative
offer (for different make, specification, slab discount etc.)

4.1.7 Late Offers: The Indian Railway E- procurement application software

does not permit vendors to submit their offers after the designated
tender closing date and time.

4.1.8 The tenders are uploaded in IREPS website well in advance of closing
time to give sufficient time to the vendors to participate in the tender.
Vendors are advised in their own interest to submit their offers well in
advance before the tender closing time. Northern Railway shall not be
responsible for non- participation of vendors due to any technical
problems such as network connectivity etc. on the tender opening day.

4.2. Goods & Service Tax (GST)

i. The bidders should ensure that they are GST compliant & their
quoted tax structure/ rates are as per GST law.

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ii. The bidders are required to indicate the rate of GST applicable
for the tendered item in their bids separately in the rate page
provided in the IREPS system. The offers shall be evaluated
based on the GST rate as quoted by each bidder & same will be
used for determining the inter-se ranking. While submitting the
offer, it shall be responsibility of the bidder to ensure that they
quote correct GST rate & HSN number.

iii. Purchase shall not be responsible for any mis-classification of

HSN number or in correct GST rate if quoted by the bidder. The
purchaser will not reimburse any GST paid by the supplier due
to mis-classification.

iv. Where the successful bidder invoices the goods at GST rate or
HSN number which is different from that incorporated in the
purchase order, payment shall be made as per GST rate which
is lower of the GST rate incorporated in the purchase order or
billed.

v. Vendor is informed that she/he would be required to adjust

her/his basic price to the extent required by higher tax billed as
per invoice to match the all-inclusive price as mentioned in the
purchase order.

vi. Any amendment to GST rate or HSN number in the contract

shall be as per the contractual conditions and statutory
amendments in the quoted GST rate and HSN number, under
SVC.

vii. The bidders while submitting their bids shall give the following
declaration: “We agree to pass on such additional setoff/input
tax credit as may become available in future under the GST
provisions in respect of all inputs used in the manufacture of the
tendered item on the date of supply, by way of reduction in price
and advise the purchaser accordingly.”

viii. The suppliers while submitting their bills for payment shall give
the following declaration:

“We hereby declare that additional setoff/input tax credit to the

tune of Rs. has accrued and accordingly the same is being
passed on to the purchaser and to that effect the payable
amount may be adjusted.

ix. In case the successful tenderer is not liable to be registered

under CGST/IGST/UTGST/SGST Act. The railway shall deduct
the applicable GST from his/their bills under reverse charge

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mechanism (RCM) and deposit the same to the concerned tax

authority.

4.3 Delivery Schedule

4.3.1 The tenderers should quote the delivery period/ delivery schedule
carefully, because the time and date for the delivery of stores shall be
the essence of the contract and delivery must be completed not later
than the date so specified. Attention of the tenderers is invited to
clauses 0700, 0701 and 0702 of the IRS Conditions of Contract, which
shall govern the contract. Delivery Period shall be reckoned from the
date of issue of Advance PO/ Letter of Advance Acceptance/ Letter of
Acceptance.

4.3.2 The delivery period and delivery schedule as per Northern Railway’s
requirement are indicated in the respective fields in the electronic
tender. Tenderers are advised to adhere to the delivery period/delivery
schedule stipulated in the tender, as deviation from the same may
render their offer liable to be ignored. Tenderers should invariably quote
firm delivery period in their quotation. If the quoted delivery period
spreads over several months, the date of commencement, monthly rate
of delivery and the date of completion of delivery must be indicated.

4.3.3 In the case of “ex-stock” offers, the dispatch of stores is to be affected

within 7 days of the receipt of order. Wherever the stores are subject
to inspection by RITES/RDSO etc. before dispatch, extra time of 3
weeks will be allowed to cover time in inspection.

4.3.4 In case of delivery by Rail, the date on which stores are placed on Rail
will be date of delivery. In case of local delivery, the date of delivery to
consignee will be taken as date of delivery. For outstation dispatches, if
sent by road, the date of receipt of material by consignee will be taken
as date of delivery.

4.3.5 No transit time shall be allowed beyond the delivery date stipulated in
the contract.

4.3.6 Time Preference Clause: It should be noted that if a contract is placed

on a higher tenderer as a result of invitation of tender, in preference to
the lower acceptable offer, in consideration of offer of earlier delivery,
the contractor will be liable to pay to the Government the difference
between the contract rate and of the lowest acceptable tender on the
basis of final price F.O.R destination including freight, GST and other
incidentals in case of failure to complete supplies in terms of such
contract within the date of delivery specified in tender and incorporated
in the contract. This is in addition and without prejudice to other rights
under the terms of contract.

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4.4 Delivery Terms

4.4.1 The purchaser will prefer delivery by road at consignee’s end on freight
prepaid basis.

4.4.2 Tenderers are required to clearly indicate the freight charges in the
relevant field in the ‘Financial Rate Page for Supply’ form. The freight
charges to be paid shall in no case exceed the freight charges quoted
by the tenderer in the relevant field in the ‘Financial Rate Page for
Supply’ form.

4.4.3 In case an offer is submitted on ‘FOR-Station of dispatch’ basis, ‘FOR-

Ex-Works’ basis or ‘FOR-Ex- Godown basis’ and ‘Nil’ freight charges
are quoted by the tenderer in the relevant field on the ‘Financial Rate
Page for Supply ’form, the supplier shall agree to dispatch the stores by
rail/road on free delivery to consignee. No freight charges shall be
payable in such cases.

4.4.4 In case an offer on “FOR- Station of dispatch” basis is accepted with

mode of dispatch by rail, the supplier shall agree to book the stores by
goods train for wagonload consignments and passenger/parcel train for
smalls. Reimbursement of freight element, permitted as per contract
conditions may be claimed through bill.

4.4.5 The purchaser will not pay separately for transit insurance and supplier
will be responsible till the entire stores contracted for are received by
the consignee in good condition at destination.

4.4.6 The bidders may please note that requests for extension of delivery
period will not be agreed to in routine manner.

4.5 Inspection:

4.5.1 The inspection of stores at manufacturer’s premises before dispatch will

be conducted by an agency nominated by the purchaser viz. RITES or
RDSO or DQA or the representative of consignee. Final inspection of
stores will be done by the consignee on receipt at destination.

4.5.2 Tenderers are required to confirm acceptance of the Inspection Clause

mentioned in the tender document, and non-acceptance of the same
shall render the offer liable to be ignored.

4.5.3 In case the purchase orders are placed on traders/agents for the item(s)
which are peculiar to the railways, traders/agents should indicate the
source of supply and inspection shall be carried out at their
manufacturer’s premises rather than trader/agents’ premises, to ensure
genuineness of quality of the material.

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4.5.4 In case the firm fails to offer the material for inspection against
inspection call issued to inspecting agency, or if the material have to be
re-inspected due to rejection of the material at firm premises by
inspecting agency or due to non-dispatch of material within validity of
inspection certificate, then the charges as per RITES terms and
conditions will be paid by the supplier to the respective agency.

4.6 Payment Terms

4.6.1 The standard payment terms subject to recoveries, if any, under the
IRS Conditions of Contract are as under: -

a. 95% payment against inspection certificate and proof of

dispatch/ delivery to consignee and balance 5% after receipt
and acceptance of the goods.

b. 100% payment against receipt and acceptance of material by

the consignee after inspection and acceptance at destination.

c. 100% payment will be made after receipt, inspection,

acceptance of the equipment by the consignee, and
installation/commissioning of the same on site.

d. 80% payment shall be made on receipt of the items in

satisfactory condition, against supplier’s challan certified by
consignee gazetted officer, and inspection certificate issued by
the nominated inspection agency. Balance 20% payment shall
be made after successful installation, commissioning and
acceptance of the equipment by consignee subject to
submission of Bank Guarantee for 10% of the contract value for
warranty obligations, valid beyond 6 months period of warranty.

e. For contracts valued up to Rs. 5 Lakh, payment terms as per (b)

above only will be accepted.

4.6.2 In case of dispatch by rail, unqualified Railway Receipt/Parcel Way Bill

will be taken as the proof of dispatch. In case of dispatch by other
means such as road transport, receipted challan signed by the
Gazetted Officer at consignee’s end will be taken as proof of delivery for
the purpose of 4.6.1 as above.

4.6.3 Tenderers are advised to accept the standard payment terms

incorporated in the tender, as deviation from the same shall render the
offer liable to be ignored.

4.6.4 In deserving cases, Northern Railway, at their sole discretion may

accept deviation from the standard payment terms, as per existing
guidelines/instructions.

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4.6.5 Payment through EFT

a. The tenderer shall give his consent in a mandate form for

receipt of payment through EFT (Annexure-6 of this document);
by attaching scanned copy of the same in PDF format in the
template Attach Documents on ‘Techno Commercial Bid Details
form.

b. Tenderer shall provide the details of Bank A/C in line with RBI
guidelines for the same. These details will include Bank Name,
Branch Name & Address, Account Type, Bank A/C No., and
Bank & Branch Code as appearing on MICR cheque issued by
bank.

c. Tenderer shall also attach certificate from their bank certifying

the correctness of all above- mentioned information.

d. In case of non-payment through EFT, or where EFT facility is

not available, payment may be released through cheque.

e. The purchase order will contain the following details as furnished

by the firm;

(i) Account no. & Type

(ii) Bank Name & Code.

(iii) Branch name & Address.

(iv) Whether payment is through EFT or Cheque.

4.6.6 Payment through LC – Vendors can avail the option of payment through
LC in tenders having estimated value of Rs. 10 lakh and above. This
scheme shall be governed by the following conditions-

a. The LC will be a sight LC.

b. The bidder, at the time of bidding itself, shall exercise an option,
in favor of taking payment due against this tender, through LC
arrangement. The option, so exercised, shall be an integral part
of the bidders offer.
c. Option once exercised shall be final and no change shall be
permitted thereafter.
d. The incidental cost @ 0.15% of LC value, towards issue of LC
and operation thereof shall be borne by the supplier and shall be
recovered from their bills.
e. State Bank of India through its branches shall be the Banker for
Railways for opening domestic letters of credit for ensuing year.
The arrangement would cover all such contracts finalized against

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tender issued during the said period and shall extend till final
execution of these contracts.
f. The schedule of payment liability arising in the contract shall be
established by the Railways based on the prescribed delivery
schedule/stages of supply.
g. The acceptable, agreed upon document for payments to be
released under the LC so opened shall be a Document of
Authorization.
h. The supplier/contractor shall submit their bills for completed
supply to the bill processing authority mentioned in
supply/contract agreement to issue Document of Authorization to
enable supplier/contractor to claim the authorized amount from
their Banker.
i. Accounts Officer responsible for passing the claim will issue the
Document of Authorization.
j. The supplier/contractor shall take print out of the Document of
Authorization available on IREPS portal and present his claim to
his banker (advising bank) for necessary payments as per LC
terms and condition. The claim shall comprise LC Document of
Authorization, Bill of Exchange and Invoice.
k. The bank shall also recover any amount as may be advised by
railway against the contractor/ supplier.
l. The Contractor/ Supplier shall indemnify the Railway from and
against all losses, claims and demands of every nature and
description brought or recovered against the Railways by reason
of any act or omission of the Contractor/ Supplier, his agents or
employees, in relation to the Letter of Credit (LC). All sums
payable/ borne by Railways on this account shall be considered
as reasonable compensation and paid by Contractor/ Supplier.

4.6.7 Bidder may please note that Northern Railway has switched completely
to 100% online payment. Hence no option for manual payments will be
accepted.

4.7 Samples, Drawings & Specifications

4.7.1 Samples

4.7.1.1 The offers should strictly conform to the specified description and
drawing/ specification in schedule of requirements and no samples
need be submitted unless so mentioned in tender form. When samples
are required, the same must strictly conform to description, drawing/
specification as mentioned in the tender documents. Samples submitted
will be considered as supplemental and not in supersession to any
specification mentioned and such samples will only be considered in
relation to those points which are not defined in the specification. The
onus of drawing attention to any particular item in which a tenderer
wishes his samples to supersede or vary from the tender
description/specification lies on tenderer. In the absence of specific

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acceptance in writing to any variation, the purchaser shall be entitled to

reject any claim for acceptance of supply embodying such variation.

When samples are called for, they should be marked, sealed and
labelled so as to correspond with the item of the tender. They should be
sent “Freight Paid” to the same address as per the tender, and
arrangements should be made to see that they arrive by the opening
time and date of the tender; otherwise, the offer is liable to be rejected.

Samples submitted by the tenderer which are of the value of Rs. 500/-
or less will not be returned to them. For samples valuing above Rs.500/-
the tenderer must state on the tender form if he requires the return of
unaccepted samples failing which they will be retained by the
purchaser. Unaccepted samples will be returned to firms on application
who may arrange collection of the same from the Office of PCMM.

Firms on whom orders are placed should refrain from sending advance
samples unless called for and should make supplies strictly as per
tenders or orders placed with them.

4.7.1.2 Wherever the tenders have been invited as per approved sample, such
approved sample can be seen in the Office of the PCMM, Northern
Railway, Baroda House, New Delhi-110001 or otherwise as mentioned,
during office hours, on any working day before the closing date and
time of the tender.

4.7.2 Drawings & Specifications

4.7.2.1 Where the tenders have been invited as per IRS/RDSO drawings or
specifications, the tenderer shall obtain such drawings or specifications
from RDSO (Research Designs and Standards Organization, Manak
Nagar, Lucknow- 226011) on payment of the cost of
drawings/specifications, well in advance of the closing date. Similarly,
where the tender has been invited as per drawings or specifications
issued by ICF (Integral Coach Factory, Perambur, Chennai,
Tamilnadu)/RCF (Rail Coach Factory, Kapurthala, Punjab)/CLW
(Chittaranjan Loco Works, Chittaranjan, West Bengal)/DLW (Diesel
Locomotive Works, Varanasi, Uttar Pradesh)/CORE (Central
Organization for Railway Electrification, Allahabad, Uttar Pradesh), the
tenderer shall obtain such drawings/ specifications from the
respective issuing authorities, on payment of cost of the drawing/
specification. Where the tender has been invited as per BIS
specifications or any other standards, it shall be the responsibility of the
tenderer to arrange such documents from the respective issuing
authority. Northern Railway shall provide no assistance to the vendors
in this regard, and shall not be responsible for non- participation of
vendors on account of delay in arranging such drawings/specifications.

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4.7.2.2 Where the tenders have been invited as per Northern Railway drawings
or specifications, scanned copies of such drawings/specifications shall
normally be attached with the electronic tender. However, where it is
not possible to do so, the drawings/specifications can be seen/obtained
from the Office of the Principal Chief Materials Manager, Northern
Railway, Baroda House, New Delhi- 110001, during office hours, on any
working day before the closing date and time of the tender.

4.8 Price Variation Clause

4.8.1 Unless otherwise specified in Tender Schedule, Tenderers are advised

to quote firm prices only.

(i) Offers of Tenderers quoting with PVC in such cases shall be

summarily rejected.

(ii) Offers of tenderers mentioning PVC applicable without giving

PVC formula or giving ambiguous PVC formula shall also be
summarily rejected.

4.8.2 However, wherever considered desirable by the purchaser, a Price

Variation Clause may be incorporated in the Tender Schedule itself. In
all such cases, where PVC formula and PVC base date/base rate has
been incorporated in tender, the Tenderers are advised to submit their
offers as per the PVC formula and Base Date incorporated in the tender
document and offers received with fixed prices or with a different Price
Variation formula shall be summarily rejected.

4.8.3 Tenderers who quote with PVC as stated in Para 4.8.2 above on
account of escalation in price of raw materials may please note that
such escalation claims will be subject to verification by the FA & CAO
with reference to the records that may be called for from them.
Successful Tenderers will be required to produce complete records for
verification/examination of their claims under price escalation before
acceptance of such claim. If the tenderer fails to establish their claim by
producing satisfactory records before the FA&CAO/NR, their claim will
be disallowed and/or proportionately/ suitably reduced.

4.8.4 Following Price Variation Clauses are generally recognized by the

Railways.

a. IEEMA PVC for the items covered by IEEMA formulae.

b. Railway Board’s/CORE’s PVC for items covered by such

formulae.

c. Any other PVC formulae included in NIT.

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Note:- Unless specified otherwise in the tender document, Tenderers

whose offers are with IEEMA/ Railway Board PVC have to
quote with the prices of input raw materials ruling on the base
date as stipulated in the relevant PVC (IEEMA/Railway Board).
For example, in case of IEEMA PVC, if the Tender opening date
falls in May of a year, the applicable prices of input raw
materials should be those prevailing on the 1st April of that year.

4.8.5 Tenderers who quote with Price Variation Clause on account of

escalation in price of raw material may please note that such escalation
claims will be subject to verification by the Financial Adviser and Chief
Accounts Officer of the Railways with reference to the records that may
be called for from them. Successful tenderer will be required to produce
complete records including records of ground stocks available at the
time of submission of tender for verification/ examination of their claims
under price escalation before their claims are accepted. If the tenderer
fails to establish his claim by producing satisfactory records before the
FA&CAO/ Northern Railway, their claim will be disallowed and/or
proportionately/suitably reduced.

4.9 I.T.C.C: This will be governed by extant rules of the Government of

India. Tenderers are to indicate their Income Tax PAN details and
enclose a photocopy of the same.

4.10 Decision of tenders through Reverse Auction

4.10.1 Selection criteria for tender cases of Stores proposed through

Reverse Auction (e-RA):-

The Reverse Auction shall be the preferred method for procurement of

Stores Tenders valued more than Rs. 5 Crore. The process of Reverse
Auction shall be followed where at least three approved vendors (bulk
procurement is to be from vendors approved by RDSO/ CORE/PUs
etc.) or at least three proven/ likely competitive sources, prima facie
competent for execution of bulk ordering.
Financial Bids in single currency/ parameter only shall be allowed.
4.10.2 Procedure for award of contracts through Reverse Auction:-
Each tender for Reverse Auction shall clearly specify essential technical
and commercial parameters in a transparent manner. No deviation to
such essential Technical and Commercial conditions shall be permitted
to vendors in the electronic bid form.

4.10.3 Technical Bid and Initial Price offer:-

a. Procuring authority shall decide the bid evaluation criteria in the

tender itself, whether the evaluation shall be item wise,
consignee wise or overall tender value wise.

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b. Bidder shall be simultaneously required to electronically submit

a Technical & Commercial Bid and Initial Price Offer.
Offers found eligible for bulk order shall be categorized as
qualified for bulk order for the purpose of RA and offers found
eligible for Developmental Order shall be categorized as
Qualified for Development Order for the purpose of RA.
c. Offers not complying with essential technical & commercial
requirements of the tender shall be declared as ineligible for
award of contract.
d. Initial Price offer of only those bidders categorized as qualified
for Developmental Order or Qualified for Bulk Order, shall be
opened and tabulated by system separately, category wise.

4.10.4 Financial bid:

Financial Bid shall comprise of Final Price Offer obtained through

Reverse Auction. Following conditions and procedure shall be followed
in selection of bidders for conduct of Reverse Auction.

a. Selection of vendors for Reverse Auction for award of bulk

ordering in Stores Tenders:

Number of tenderers Number of

qualified for Award tenderers to be
Remarks
of contract /Bulk selected for
Order Reverse Auction

<3 Nil *
The bids disallowed from
participating in the Reverse
Auction shall be the
3 to 6 3

Number of
tenderers Number of
qualified for tenderers to be
Remarks
Award of selected for
contract /Bulk Reverse Auction
Order
Highest bidder(s) in the tabulation
50% of Vendors of initial price offer.
qualified for bulk In case the highest bidders quoted
order/ award of the same rate, the initial price offer
More than 6 contract received last, the initial price offer
(rounded off to received last as per time log of
next higher IREPS shall be removed first on the
integer) principle of last in first out, by
IREPS system itself.

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Note:-

i. If the number of tenders qualified for bulk order/ Award of Contract is

less than 3, RA shall not be done and tender will be decided on the
basis of initial price offer(s).

ii. MSE Criteria: All MSEs found qualified for Bulk Order/ Award of
contract but could not be selected for Reverse Auction as per criteria
stipulated above, but are within the range of 15% of lowest initial price
bid shall be permitted to participate in the Reverse Auction, irrespective
of their inter- se ranking on the basis of initial price bid. Such MSEs
shall be over and above the number of vendors selected for Reverse
Auction.

During Reverse Auction process bidders shall not be allowed to bid a

rate higher than the lowest initial price offer. The bidders will not be
allowed to alter the rates of taxes and duties quoted by them.

4.10.5 Bidders shall only be able to see the auction screens relevant to them
for each category. Purchaser shall be permitted to see all the auction
screens for both categories on line.

4.10.6 Quantity to be covered on developmental orders shall be limited to 20%

of the net procurable quantity. The quantity covered on developmental
orders may be within or outside NPQ.

4.10.7 After obtaining the final bids of Reverse Auction, tenders shall be
finalized as per existing policy (including price preference to MSEs and
Make in India Order, 2017 (wherever applicable) and procedures based
on the eligibility and quantity distribution criteria, as pre-defined in the
tender document. All the relevant policies of Government of India at the
relevant time shall be applicable.

Note:- For all the e-RA Tenders above Rs. 5 Crore, two packet Single Stage
System of tendering will be followed.

5.0 OPENING OF ELECTRONIC TENDERS

5.1 The tender shall be opened electronically by railway official(s),

authorized to do so by Northern Railway, by logging on the IREPS
website with their Login ID and Password, by authenticating themselves
through their Digital Signature Certificate, as well as applying secure
decryption key of Northern Railway for decryption of electronic offers.

5.2 The tender shall normally be opened on the stipulated closing date,
after the stipulated opening time. In case the closing date falls on a
holiday, the tender shall be opened on the next working day. However,
due to unavoidable reasons, the tender may not be opened on the
stipulated closing date, and may be opened on a later date. However,

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no revision or modification of the offer shall be allowed after the closing

date and time, even if there is any delay in the tender opening.

5.3 Immediately after the opening of tender, financial and Techno-

commercial tabulation statements are generated by the IREPS module.
Vendors who have submitted valid offers against electronic tenders
against ‘Open’ and ‘Special Limited’ tenders are not required to come to
Northern Railway office to witness the tender opening process and
know the offer details, as they will be able to access the tabulation
statements and bids, immediately after tender opening, by visiting the
IREPS website and logging in with their Login ID, Password and Digital
Signature.

5.4 Clarifications from Tenderers: After opening of tender, if necessary, the

purchaser may obtain clarification on the offers by requesting for such
information from any of the tenderers as considered necessary.
Tenderer will, however, not be permitted to change the substance of the
offers after the tender have been opened.

6.0 EVALUATION OF OFFERS

6.1 The commercial offer details shall be submitted by vendors using

‘Financial Rate Page for Supply’ form having separate entry box for
each element of rate. The vendors must fill in basic rate and other rate
components such as GST, unconditional discount on basic rate, if any,
packing charges on basic rate, forwarding charges, Freight charges,
other charges, if any, in the boxes provided in the ‘Financial Rate Page
for supply’ form. The all-inclusive rate per unit shall be calculated
automatically considering all the elements of rate components, as filled
by vendor before submitting the offer, and will be displayed before
vendor submits his digitally signed electronic offers. Tenderers can edit
any or all rate entries before submission and before digitally signing
their electronic offers. Tenderers are therefore advised to check, and
revise any or all the entries in the rate page before the same is digitally
signed and submitted.

All offers will be evaluated after taking into account the all-inclusive
destination rate per unit, which will also be displayed to the vendor
before submission of his electronic offer.

6.2 Tenderers should quote financial terms and conditions in the nominated
fields of ‘Financial Rate Page for Supply’ form only. Any financial terms
and conditions mentioned in the fields other than the nominated fields
will be ignored and will not be considered for purpose of evaluation of
offer to determine the inter-se ranking of the offer. Tenderers are
advised not to quote any terms and conditions having financial bearing
in any other template of ‘Techno Commercial Bid Details’ form except
the ‘Financial Rate Page for Supply’ form, or in the Remarks field of the
‘Financial Rate Page for Supply’ form, as these will not be considered

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for evaluation of the offer. Similarly, any financial terms and conditions
enclosed as attachments will be ignored and not considered for purpose
of evaluation of offer to determine the inter-se ranking of the offers.
However, Railways at their own discretion may avail the benefit of such
conditions while placing purchase order, if the offer is considered for
placement of order.

Nothing extra shall be payable over and above the all-inclusive rate
shown in the financial offer, except on account of Price Variation clause,
and Statutory Variation, if applicable. Digital Signature of the tenderer
on the E-tender form shall be construed as confirmation that the
tenderer has read and accepted this condition.

6.3 The tenderers shall quote specific freight charges in the relevant field of
financial rate page. Ambiguous remarks like ‘freight extra at actual’,
‘freight shall be charged extra’, ‘Railway freight shall be charged extra’
etc., mentioned in the ‘PVC and remarks’ field or elsewhere in the
electronic offer or attachments shall not be considered for evaluation,
and may render the offer liable to be ignored. However, freight charges
shall not be payable if the offer is considered.
6.4 Rates quoted by the tenderers with discounts, if any, linked to quantity
will be considered for determining inter-se position of the offers.
Discounts with conditions attached to early payment, early Receipt
Notes etc. will be ignored for calculating inter-se position. However,
Railways may avail the discounts linked to early payment, early Receipt
notes etc. if otherwise firm’s offer is found to be acceptable.
6.5 The tenders will be evaluated by the Purchaser on free delivery to
destination basis, to ascertain the best and lowest acceptable tender,
as specified in the specifications and tender documents. Wherever
more than one consignee/item are involved, unless specified otherwise
in the tender document, tender would be evaluated and inter-se ranking
of the tenderer would be made for each item and/or each consignee
separately.
6.6 The inter-se ranking shall be determined by considering the taxes &
duties applicable on the date of tender opening and the inter- se ranking
arrived at in such manner shall be taken as final.
In case of reduction in taxes and duties, the taxes and duties will be
paid as per rate there of prevailing on the date of supply. Statutory
variation in taxes and duties shall be allowed only during the original
delivery period.

6.7 Claim for any tax or duty not stipulated in the quotation will not be
admitted at any stage on any ground whatsoever.

6.8 The purchaser reserves the right to give price preference to the MSE
units registered with UDYAM as per para 2.4.1, over the quotations of
large-scale units, in accordance with the policies of the Government of

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India from time to time. The price preference above cannot however be
taken for granted and every endeavor need be made by them to bring
down cost and achieve competitiveness.

7.0 Acceptance of Tender

7.1 The purchaser may accept a tender for a part or whole of the quantity
offered, reject any tender without assigning any reason and may not
accept the lowest or any tender.

7.2 Option Clause –

a. Unless otherwise specified in the tender document, the

purchaser shall be entitled to increase the order quantity by
30% of the order quantity anytime within the validity of the
contract (original/extended). The increase in quantity with
respect to the tender quantity can be done even at the time of
ordering and the tenderer shall be bound to accept the quantity
so ordered.

b. The purchaser shall be entitled to operate +30% option clause

in one or more than one installment as long as the total variation
in quantity does not exceed the limit of 30% of the ordered
quantity.

c. The purchaser reserves the right to accept the tender with

splitting of tender quantity on minimum two firms with the option
to increase the quantity to full tendered quantity on any of the
firms.
d. Total coverage against the tender considering the orders placed
on all the firms in the tender should not increase the tendered
quantity by more than 30%.

e. In case where separate orders for an item for different

consignee(s)/ paying authority(ies) are placed on one firm
against one tender, total quantity of all such orders shall be the
basis for the purpose of option clause. In such cases, option
clause can be operated in any of the order/ or for any
consignee(s) so long as Delivery Period of any of the order in
the tender is alive.

f. In a contract that provides for quantity option clause, in case

Delivery Period is extended either for the full ordered quantity or
a part quantity which remained unsupplied on the date of expiry
of the original delivery period, then during the extended delivery
period also, quantity variations can be made on the total
ordered quantities.

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g. Where the + (plus) 30% quantity option leads to fractional

quantities, these may be rounded off to the next higher number,
if the fraction obtained is 0.5 or more.

7.3 Splitting of tendered quantity

7.3.1 Case of no prior decision to split the order-

A. Normally full order shall be placed on L-1 firm. However, if it is

discovered that the quantity to be ordered is 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 will be
distributed among the other tenderers in a manner that will be
fair, transparent and equitable. The manner of splitting will take
specific note of the following parameters-

i. Past Performance of tenderers

ii. Capacity of tenderers
iii. Delivery requirements in the tender
iv. Quantity under procurement
v. Vital/safety nature of the items

B. In the absence of any differentiation on the above parameters,

the manner of splitting will be based on the stipulation given in
para 7.3.2.1 below.

7.3.2 Case of pre-decided split ordering -

7.3.2.1 Wherever pre-decided split ordering is mentioned in the tender

document in advance to have more than one source of supply on
account of delivery requirement in tender, past performance and
capability of bidders, quantity under procurement and vital/safety nature
of items, provision 7.3.2.1(A) to para 7.3.4 shall be applicable.

(a) The purchaser reserves the right to distribute the procurable

quantity on one or more than one of the eligible tenderers. Zone
of consideration of such eligible tenderers will be the right of the
Purchaser. The zone of consideration will be a dynamic mix of
inter-se position of firms, supply performance of the firms,
quantity being procured, criticality of and lead time of supply of
the item, number of established suppliers, their capacity etc.

(b) Whenever such splitting of the procurable quantity is made, the

quantity distribution will depend (in an inverse manner) upon the
differential of rates quoted by the tenderers (other aspects i.e.
adequate capacity-cum-capability, satisfactory past
performance of the tenderers, outstanding orders load for the
Railway making the procurement, quoted delivery schedule vis-
à-vis the delivery schedule incorporated in the tender enquiry

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etc. being same/similar) in the manner detailed in the table

below.

Price differential Quantity distribution ratio

between L-1 and L-2 betweenL-1andL-2
Up to 3% 60:40
More than 3% and up
65:35
to 5%
At least 65 % on the L1
tenderer, for the quantity to be
More than 5%
ordered on L-2 tenderer, TC /
TAA shall decide.

i. In the phrase ‘differential rates quoted by the tenderers’, the

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

ii. When price negotiation has been called for, the reference L-1
rate for assessment of ratio will be the original rate of L-1 firm
(suitable for bulk quantity)-say firm “A”–as obtained at the
time of tender opening.

(c) If splitting of quantity is required to be done by ordering on tenderers

higher than the L2 tenderer, then the quantity distribution proportion
amongst the tenderers will be decided by transparent/logical/equity-
based extrapolation of the model as indicated in the above para.

(d) There could be a situation when between the lowest eligible

tenderer considered suitable for bulk qty (L-1 firm “A”) and another
tenderer considered suitable for bulk quantity order (say L-4), there
are tenderers who are considered suitable only for part quantity. For
example, say L-1 tenderer is approved source for bulk ordering/Pt-I
and firm L-4 is also approved for bulk ordering and splitting is to be
done between these two eligible tenderers. But there are two
tenderers in between who are suitable for part quantity, i.e., are
approved for developmental tenders/Pt-II. In such cases, L-1 should
be given its proportion based on its rate differential with respect to L-
4 (say by this L-1 gets 65% of NPQ). The balance quantity (say 35
% of NPQ) is to be distributed among other eligible tenderers. The
balance quantity is to be distributed as follows.

(1) L-2 and L-3 shall be allocated within the overall ceiling of
15%/ 20%/ 25% (of 35% of NPQ)

(2) And the balance quantity shall be allocated to L-4 tenderer.

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7.3.2.2 However, in exceptional circumstances Railway reserve the right not to

split the order quantity in cases of pre decided splitting.

7.3.3 For cases where the Rlys/Pus had entered the into ToT/JV agreements
the following shall be applicable.

As the Rly has entered into TOT/JV agreement with………………. no.

of firms, they reserve the right to place orders on all such TOT/JV
agreement partners. However, for ratio/ proportion of quantity
distribution among such agreement partners, conditions as detailed in
Para 7.3.2.1(B) shall apply with the exception that the aspect of ‘per-se
reasonability’ will not be applicable.

7.3.4 In the cases of inadequate capacity-cum-capability, dissatisfactory past

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

(Authority: Rly Bd. letter no.99/RS(G)/779/2pt.dt.05/02/2016)

7.3.5 There will be no purchase preference for products of central public

sector enterprises except for preferential purchase policies framed for
specific sectors separately.

7.3.6 Standby Coverage: In addition to regular coverage and placement of

Purchase orders for confirmed quantities in the tenders, Purchaser
reserves the right to conclude additional parallel Rate/ Price contract at
same/ differential prices also without confirmation of any quantity. In
case of failure of a firm to execute the purchase order partly or fully, the
Purchaser reserves the right to cancel such Purchase Order and
procure against the above Rate/ Price contract and any extra
expenditure incurred on this account will be recovered from the
defaulting firm(s) as a predetermined liquidated damages as per IRS
conditions of Contract. However, liquidate damages shall not exceed
10% of contract value.

7.3.7 Progress of supply: Within one month of receipt of Purchase Order, the
supplier shall have to intimate in writing about the monthly supply
schedule program with full details i.e. quantity likely to be manufactured
and going to put up for inspection etc. and will update regularly at least
on monthly basis till completion of contract.

The tenderer should note that the supplier shall have to give a written
intimation immediately after the dispatches of material (i.e. preferably

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within 48 hours of dispatch of materials) duly indicating Supply Order’s

Reference, brief description of item, its quantity, Truck/ Trailer No.,
Name and Mobile No. of Carrier’s driver (if available) to the Purchaser.

8.0 CARTEL FORMATION

8.1 Wherever all or most of approved firms quote equal rates and cartel
formation is suspected, Railway reserves the right to place order on one
or more firms with exclusion of the rest without assigning any reason
thereof.

8.2 Firms are expected to quote for quantity not less 50% of tendered
quantity. Offers for quantity less than 50% of tendered quantity will be
considered unresponsive and are liable to be rejected in case cartel
formation is suspected. Railways, however, reserve the right to order on
one more firm any quantity.

8.3 The firms who quote in cartel are likely to be deleted from the list of
approved sources.

8.4 Whenever tender is floated with purchase restriction from sources

approved by nominated authorities and there exists a suspected cartel
situation by approved sources or the rates available from approved
source/sources are adjudged unreasonably high, despite fair efforts as
permissible, the purchaser reserves the right to place orders on firms
outside the approved vendors list, without any restrictions.

9.0 SPECIAL INSTRUCTIONS/CONDITIONS FOR MACHINERY & PLANT

(M&P) ITEMS INCLUDING MEDICAL EQUIPMENTS.

9.1 Technical Compliance

The tenderers shall give para/clause wise comments on the technical
specification to indicate whether the equipment offered fully meets the
tender specifications. The offer shall be accompanied with complete
details of technical parameters/ brochure/ pamphlets for quoted
equipment with model number, if any.
9.2 Authorization letter
In case the tenderer is an agent of the manufacturer, such tenderer
should clearly indicate the same and also enclose authorization
certificate from the manufacturer to this effect (specific to the tender) and
also mention the place where the equipment will be offered for pre-
inspection before dispatch.

9.3 Validity

The offer should be kept valid for 120 days from the date of opening of
the tender.

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9.4 After Sales Service

The tenderers should confirm that they will render quick after sales
service during the warranty period of the machine and advise details of
them after sales network / office which will render the said service.

9.5 Comprehensive Annual Maintenance Contract (CMC): -

A. The Complete Equipment/ M&P shall be covered by CMC for a

period of five years after expiry of warranty period. Tenderers
along with their offers shall also quote CMC charges on a yearly
basis for period of five years for the proper upkeep and
maintenance of the quoted Equipment. The quoted CMC
charges shall include the following: -

i. Cost of preventive maintenance visits during the year (Two

visits in each year. Detailed itemized breakup of jobs to be
done in each visit shall be furnished in the offer).
ii. Cost of all spares required for preventive maintenance.
iii. Cost of breakdown Maintenance visits during the year.
iv. Cost of all spares required for Breakdown Maintenance.
v. Boarding, lodging, transportation, medical facilities and all
other incidental expenses.
vi. All duties, taxes and levies applicable.

However, the cost of consumables required for day-to-day operation

would not be included in the scope of CMC.

The CMC prices for each year will be firm. The CMC charges shall be
separately payable in Indian Rupees only. Railways reserve the right for
entering into Comprehensive Annual Maintenance Contract (CMC) on
the basis of rates quoted by the Contractor in their tender against CMC
charges.

CMC is mandatory for Medical Equipment. Therefore, offer of tenderers

not quoting CMC charges for medical equipment shall be summarily
rejected.

For all other M&Ps, the essentiality of CMC (whether CMC required or
not) is clearly indicated in schedule or requirement. However, in any
case, Tenders shall quote CMC charges for 5 years for all other M&Ps,
even for the purpose of future reference/guidance of the consignee.

B. Evaluation criterion: -

i. For Medical Equipment (CMC requirement is mandatory)

and for all other M&Ps where CMC requirement has been
clearly indicated in schedule of requirement:-

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Total Net Present Value of CMC charges for 5 years (P)

after expiry of warranty period of two years calculated on
predetermined % rate of discounting (RD) is mentioned
in Para 9.12 below. In case of different warranty period
& different span of CMC Charges this formula will be as
per the equivalent suitable calculations. The same shall
be loaded on FOR destination rate including cost of
installation & commissioning charges quoted by the
tenderer for the purpose of comparative evaluation of
offers (inter-se ranking).

ii. For all other M&Ps where CMC is not required and
indicated in schedule of requirement, but the same may
be used for future reference of the consignee: -

CMC charges shall not be loaded and only FOR destination rate
including cost of installation & commissioning charges quoted
by the tenderer shall be the criterion for comparative evaluation
of offers.

C. The CMC shall guarantee 98% availability (minimum Uptime) in

case of Medical Equipment or indicated in schedule of
requirement for other M&Ps, which shall be calculated on a
quarterly basis on the total or working days available in the
quarter. Availability shall be defined as full functionality of the
machine to fulfill all requirements specified in the specification.

D. The Maintenance shall normally be done during working hours

i.e. from 10:00AM to 5:00PM. However, in case of emergency,
maintenance may have to be done beyond working hours and
even on holidays. Prior arrangements through proper
communication should be worked out in all cases by the
Contractor.

E. The Equipment shall be considered under breakdown, if any of

the requirements specified in the specification is not fulfilled. In
case of medical Equipment’s, all breakdowns must be attended
within 48 hours of intimation by the consignee in writing
(Maximum Response time). No breakdown shall stretch beyond
three days consecutively (Maximum down time). The
Contractor, in case of Medical Equipment, any provide standby
Equipment in case Equipment could not be put in order within
three days. The maximum response time and maximum down
time for other M&Ps are indicated in schedule of requirement.

F. A penalty of 0.25% of the CMC value shall be levied for each

percentage point shortfall. However, total penalty in a year shall
not exceed 10% of the CMC value. In case, the total penalty

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exceeds 10% Railways shall have the right to cancel the CMC
and forfeit the performance guarantee bond towards CMC.

G. Payment of CMC shall be made on quarterly basis against a

performance guarantee bond equal to full value of the annual
contract value, valid for 15 Months from date of CMC, to be
furnished by the contractor at the beginning of CMC. Payment
shall be made at the end of the quarter. Penalties imposed
during quarter shall be deducted from the quarterly payment
due to the Contractor.

H. After each preventive maintenance and breakdown visit, the

performance of the machine/Equipment shall be monitored for
two days after which joint note shall be signed between the
Contractor or his authorized officials and the consignee. The
joint note shall clearly bring out the performance of the
machine/Equipment to fulfill the requirements in the
specification.

I. The Contractor shall execute the contract in conformance to all

applicable laws of the land. The consignee shall not be liable in
any way for any penalties, claims and charges arising out of the
execution of contract by the Contractor. For all such expenses
and liabilities, the Contractor shall be solely responsible. This
shall also include any compensation claims arising out of any
accident during execution of the contract.

J. The Contractor shall also be solely responsible for any damages

suffered by the consignee’s property during execution of the
contract. However, the liability shall be limited to making good
the damages inflicted.

K. The tenderers are required to give the current cost of spares

required for maintenance of machine and the current service
charges for each item of work of repair of M&P to undertake
maintenance work of the equipment by consignee after the
CMC period 5 years is over. These charges will not be included
in the price of M&P for the purpose of comparative evaluation of
offers.

L. Tenderers, who are OEM, must give undertaking for supply of

spare parts for a period of expected life of the
machine/equipment. Tenderers participating on authorization of
OEM must submit undertaking from OEM for supply of spare
parts for period of expected life of the machine/equipment.

9.6 Commissioning & Proving Test

A. The contractor shall arrange commissioning of the equipment at

the consignee premises. The tenderers shall carry out
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necessary proving test to demonstrate the performance of

equipment, after its successful commissioning to the entire
satisfaction of the consignee.

B. The Contractor or his agents shall commission the machine

within stipulated time as shown in the contract. This time frame
will be applicable from the date of intimation from the consignee
in respect of readiness of the machine for commissioning in
cases where the machine is to be installed by the consignee.
The time schedule includes the time for installation in cases
where installation is also to be undertaken by the contractor.

C. The time allowed for commissioning of machine shall be

deemed to be the essence of the contract. In case of delay in
commissioning of the machine on the part of the contractor, the
purchaser shall be entitled to recover and the contractor shall be
liable to pay a penalty at the rate of 2% of the price of the M&P
for each and every month or part thereof for which
commissioning is delayed, provided always that the entire
amount of penalty to be paid under the provision of this clause
shall not exceed 10% of the total contract value. Failure to
install / commission the machine within stipulated time after
intimation from the consignee will be taken as breach of contract
and purchaser will be at liberty to forfeit the Security Money
furnished by the supplier without any prejudice to other rights
under the contract.

D. Continuance of commissioning work after expiry of stipulated

time will also constitute a default for the purpose of the Clause
10.6.c. above. The decision of the Purchaser on whether the
delay in commissioning has taken place for reason(s) attributed
to the contractor shall be final and binding.

9.7 Training

The contractor during commissioning of the equipment will also train

Railway staff in operation and maintenance of equipment supplied.

9.8 Maintenance Manual & Spare Parts

Contractor is required to supply 2 copies of operation and maintenance

manual and lists of Spare parts along with the equipment.

9.9 Warranty

A. The contractor shall warrant that the equipment supplied shall

be free from defect and faults on material, workmanship.
Manufacturing quality should be of the highest grade consistent
with the established and generally accepted standard goods of

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the type offered and in full conformity with the tender

specifications.

B. Unless otherwise mentioned in the specification, the equipment

offered should be warranted against defective design, material,
workmanship etc. for a period of 24 months from the date of
commissioning and proving test at destination, provided defect
and / or claims are notified to contractor within 2/3 months of
such date.

C. The Contractor shall, if required, replace or repair the equipment

or such portion thereof as is found defective by the Purchaser,
free of cost at the ultimate destination or at the option of the
purchaser, the Contractor shall pay to the Purchaser value
thereof at the contract price and such other expenditure and
damages as may arise by reason of the breach of the condition
herein specified.

D. Maximum downtime during the warranty period will be 2% for

online Machinery and Plant including Medical equipment and
10% for offline Machinery and Plant calculated on quarterly
basis. Penalty of 0.5% per week on part thereof of the contract
value will be levied for delay in response time for attending and
rectification of fault beyond specified time during the warranty
time.

Maximum penalty to be levied on account of warranty failure will

be 5% of the contract value calculated during whole of the
warranty period, and after that if there is any delay on part of the
Contractor, purchaser shall be entitled to encash warranty BG.
Further, in such cases bad performance of such Contractor shall
be recorded and circulated to all the zonal railways and in future
tender the poor performance of such tenderer shall be duly
considered.

E. The decision of the Purchaser in regard to Contractor’s liability

and the amount, if any, the payable under this warranty shall be
final and conclusive.

F. Warranty clause is also applicable for spare parts / assemblies.

9.10 Inspection: - By RITES at works/premise of manufacturer.

9.11 Payment Terms

A. For orders value up to Rs. 5 Lakh – 100% payment will be made

after inspection, receipt, installation and acceptance of
equipment by the consignee.

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B. For orders valued above Rs. 5 Lakh - 80% payment shall be

made against proof of dispatch / delivery and inspection
certificate, 20% after satisfactory installation, commissioning
and acceptance of the equipment by consignee subject to
submission of BG for 10% of the contract value for warranty
obligations, valid beyond 6 months period of warranty.

9.12 Formula for calculating Net Present Value for CMC Charges:-

CMC Charges for 1st Year after expiry of warranty period of two years C1

CMC Charges for 2nd Year after expiry of warranty period of two years C2

CMC Charges for 3rd Year after expiry of warranty period of two years C3

CMC Charges for 4th Year after expiry of warranty period of two years C4

CMC Charges for 5th Year after expiry of warranty period of two years C5

Predetermined percentage rate of discounting = RD @ 8%.

Net present value of CMC charges for 1st year P1 = C1/(1+RD/100)³

Net present value of CMC charges for 2nd year P2 = C2/(1+RD/100)⁴
Net present value of CMC charges for 3rd year. P3 = C3/(1+RD/100)⁵
Net present value of CMC charges for 4th year P4 = C4/(1+RD/100)⁶
Net present value of CMC charges for 5th year. P5 = C5/(1+Rd/100)⁷
Total Net present value of CMC charges for 5 year. P = P1+P2+P3+P4+P5

Total Net present Value of CMC charges for 5 years (P) shall be loaded on FOR
destination rate including cost of installation & commissioning charges quoted by
the tenderer for the purpose of comparative evaluation of offer (inter-se-ranking of
the offers).

10.0 SPECIAL INSTRUCTIONS FOR SIGNALLING & TELE-

COMMUNICATION ITEMS

10.1 Purchase of Signaling & Telecommunication items, for which RDSO has
approved the sources, will be made from the sources approved by
RDSO as per extant policy. The tenderers should attach a copy of the
current and valid “type-approval certificate” for the product offered in
PDF format in the template Attach Documents on ‘Techno-commercial
Bid Details form.

10.2 Firms not borne on the approved list of RDSO must attach the proforma
for assessment of technical/manufacturing capability as per Annexure-4
in PDF format in the template Attach Documents on ‘Techno-commercial
Bid Details’ form.

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10.3 In case developmental/educational orders are placed on firms not

approved by RDSO, the samples of materials manufactured by them
would need to be got “type-tested” from RDSO and approval obtained
before commencing bulk supplies.

11.0 Declaration for infringement of IPR by tenderer/supplier:

All prospective manufacturer/supplier shall note that: Northern Railway

shall not be responsible for infringement of patent rights arising due to
similarity in design, manufacturing process, use of similar components in
the design & development of this item and any other factor not
mentioned herein which may cause such a dispute. The entire
responsibility to settle any such disputes/matters lies with the
manufacturer/supplier. Northern Railway stands indemnified for claims
whatsoever arising out of such issues.

Details / design / documents given by prospective tenderer shall not

infringe any IPR and they are responsible in absolute and full measure
instead of Northern Railway, for any such violations. Data, specifications
and other IP as generated out of interaction with Railways shall not be
unilaterally used without the consent of Northern Railway and right of
Northern Railway on such IP, will deemed to be acceptable to them.

12.0 Security Deposit (SD)/ Performance Security for Stores contracts

except M&P

12.1 There shall be no exemption from submission of Security Deposit (SD) for
any tender or by any tenderer except the following:

a. Stores contract cases of value up to ₹ 25(Twenty-five) Lakh.

b. Other Railways and Government Departments.
c. Indian Ordinance Factories.
d. PSUs owned by Ministry of Railways and PSUs for the group of
items that are manufactured by them.
e. In tenders issued against PAC, OEM in whose favor PAC has been
issued shall be exempted from submitting SD. KVIC shall be
exempted from SD for items supplied by them.
f. Vendors registered with Railways for the trade group of the item
tendered shall be exempted from SD for orders valued up to their
monetary limit of registration.
g. Vendors appearing in the approved vendor lists of RDSO/ PUs/
CORE for the tendered item, subject to approval status being valid
on the date of tender closing.
h. Vendors registered with Railways for supply of medicine, medical
equipment and consumables shall be exempted from SD for these
items.

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Note:
Apart from claiming damages from vendors, in case of failure to
comply with the contractual obligations, Railways shall record poor
performance of the vendors for taking suitable penal action as per
extant instructions.

12.1.1 The bidder(s), who stand disqualified as per the declaration furnished by
them in Bid Securing Declaration, will not be exempted from submitting SD
for all tenders published during the period of their disqualification.

12.2 Forms of Security Deposit (SD)/ Performance Security

12.2.1 The Security money can be deposited in any of the following forms:

Deposit receipts, Pay orders, Demand Drafts, Guarantee Bonds issued by

Nationalized or Scheduled Commercial Banks, Bonds of Indian Railway
Finance Corporation and KRCL Bonds, Government Securities and
deposits in the post office saving banks. The Guarantee Bonds/Bank
Guarantee should be submitted in the prescribed form as per Annexure-1.

12.2.2 Payment of Security money in the form of pay order/demand draft shall be
made in favor of FA&CAO (SAB), Northern Railway, Baroda House, New
Delhi-110001.

12.2.3 Tenderers submitting Security Money in the form of Bank Guarantee (BG)
should ensure the following, to avoid rejection/return of the BG:

a. The Bank Guarantee should be executed on non-judicial stamp

paper of appropriate value as applicable at the place where the bank
guarantee is executed.

b. The non-judicial stamp paper used for executing the Bank

Guarantee should have been purchased in the name of executants
Bank.

c. The Bank Guarantee should be duly attested by notary public along

with notarial stamps of appropriate value affixed thereon.

d. Every page of Bank Guarantee should be signed by the authority

executing it and the Bank Guarantee should be duly numbered.

e. All corrections/alterations, if any, made in the Bank Guarantee

should be duly attested by the executants Bank and the notary
public as well.

f. The Bank Guarantee should be in the prescribed format (Annexure-

1) and completely in the typed form.

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12.3 Security deposit shall remain valid for a minimum period of 60 days beyond
the date of completion of all contractual obligations.

12.4 Amount of Security Deposit will be as indicated below:

SD (rounded off to nearest higher

Contract Value
₹10(Ten))
Up to ₹ 25 Lakh Exempted.
Above ₹ 25 Lakh and up to ₹ 50 @ 3% of Contract Value subject to
Crore max ₹ 50 Lakh.
Above ₹ 50 Crore ₹ 1 Crore.
In exceptional cases, Railways reserves the right to increase the upper
ceiling limit of SD, up to 10% of the contract value.

12.5 The successful tenderer shall have to deposit SD within 21 days of issue of
Letter of Acceptance. No extension of time for submission of SD shall be
granted.

12.6 In the event of successful tenderers failing to deposit/ submit SD in

acceptable form within the prescribed period as aforesaid (Para 12.5
above), the EMD submitted by such successful tenderers shall be
automatically adjusted towards SD. In case where available EMD amount
is less than required SD and the successful tenderer does not deposit the
balance SD amount within stipulated time, then EMD shall be forfeited and
case be dealt similar to that of withdrawal of offer by the tenderer as per
extant instructions.

12.7 No claim shall lie against the Railway in respect of interest on cash
deposits or Government securities or depreciation thereof.

12.8 Refund of security deposit becomes due when the contract is satisfactorily
completed in accordance with terms & conditions of the contract and
submission of “No Claim Certificate” in the format given in Annexure-2.
Purchaser’s decision in this regard shall be final and binding on the
supplier.

13.0 Advice of Dispatch of Stores

13.1 The supplier should ensure that Railway Receipts/PWB under which the
material is booked to a Railway consignee (in case of delivery by Rail
allowed in contracts) are prepared in the favor of “consignee” and not “self”
failing which they will be required to take the delivery themselves and
deliver the consignment to the consignee. When suppliers submit the
original RR/PWB along with other documents to paying authority for
claiming advance payment, a photocopy of RR/PWB should be sent
simultaneously to consignee.

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13.2 All dispatch documents i.e. RR/PWB Challan, Inspection certificate etc.
should be sent to the consignee and copies of advice of dispatch must also
be sent to the PCMM, Northern Railways, Baroda House, New Delhi,
110001.

13.3 The contractor shall submit monthly report concerning the progress of the
contract and/or supply of stores to the Purchaser and Consignee. The
submission and acceptance of such report shall not prejudice the rights of
the purchaser in any manner.

14.0 Alteration of Specifications, Patterns & Drawings

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

15.0 Liquidated Damages

15.1 In case of failure on the part of the supplier to arrange supplies as per the
delivery schedule/installments fixed in advance, save force majeure
conditions and delays attributable to purchaser, the purchaser reserves the
right to levy liquidated damages which shall be levied as per Para 702 (a)
of IRS Conditions of contract for delayed quantity which have remained
unsupplied for that period.

15.2 Recovery of Liquidated Damage (LD) shall be levied @1/2% (half percent)
of the price of the store per week or part of the week during which delivery
is accepted and the upper limit for recovery of LD in supply contracts is
10% (ten percent) of the value of contract irrespective of delays, unless
otherwise provided, specifically in the contract.

16.0 Action in case of default of the firm in execution of contract

16.1 Risk Purchase

Risk Purchase clause shall not be applicable.

16.2 General Damages (GD):

In case of failure on the part of contractor to effect deliveries as per terms &
conditions of the contract, as amended from time to time, Purchaser shall
have right to levy damages from the supplier for failing to comply with the

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contractual conditions, not by way of penalty, an amount equal to 10% of

Order value as General Damages of the cancelled value of the contract.
Similar action may be taken if the progress of supply is not on pro rata
basis commensurate with delivery period.

16.3 If the contractor fails to deliver the Stores or any installment thereof within
the period fixed for such delivery in the contract or as extended or at any
time repudiates the contract before expiry of such period, purchaser would
be entitled to effect recoveries from the firm as enumerated below:

a. Where actual or potential loss has been incurred due to the failure of
the Supplier to put in supplies within the contracted delivery period
and the Purchaser has no option but to cancel the contract with
General Damages within the ceiling of amount, calculated under the
contract, will be levied. The Purchaser shall be entitled to recover
from the Contractor as compensation to the Railway, a sum to
extent of 10% of the cancelled value of the contract.

b. Wherever SD has been exempted for any reason, and the supplier
fails to supply goods as per Conditions of Contract, as amended
from time to time, Purchaser shall have right to levy damages from
the supplier for failing to comply with the contractual conditions, not
by way of penalty, an amount equal to 10% of Order value as
General damages. These damages shall be treated as recoveries
outstanding against the vendor and dealt with accordingly.

c. For severable contracts, in case of failure by contractor to meet

deliveries for any lot, Purchaser may cancel the contract by levying
damages from the supplier for failing to comply with the contractual
conditions, not by way of penalty, an amount equal to 10% of Order
value as General damages commensurate to that lot.

d. Further to the extent SD has been taken(Say of value “A” (which is

less than10% of the value of the contract)) in such cases, the GD
will be leviable for the difference amount i.e., GD leviable (say “B”)
will be equal to 10% of outstanding value of contract minus the value
of SD submitted (A). In such cases amount ‘A’ shall be forfeited and
the GD amount ‘B’ shall be recovered from the firm.

16.4 Recovery from the defaulting firms

If a contract is cancelled in terms of Para 16.3 above, then the purchaser

would be free to recover the amount from any outstanding bills of the
defaulting firm. In case, no bill of the defaulting firm is pending then the
amount may be recovered from any outstanding bills of the sister concern
of the defaulting firm. This will apply to all sorts of recovery like EMD, SD or
recovery of advance payment made where supply gets rejected
subsequently or any other recovery due from the firm.

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16.5 Adverse performance of such firms shall be recorded and shall be

intimated to the approving authority and shall also be taken into account in
future tender cases on merit.

17.0 Payments

17.1 All Suppliers may submit their Bills on-line through their IREPS login.
No Manual Bill submitted off-line shall be entertained except cases
where system of offline bill submission is within place.

17.2 For cases where offline bill submission is permitted

Suppliers are requested in their own interest to observe the following

instructions to avoid delay in payment of their bills for materials supplied
for stock purposes and dispatched to the Northern Railway Stores Depots
mentioned in contract.

a. Receipt Note sent to the supplier as acknowledgement of receipt

and acceptance of Stores delivered to the consignee should be
attached with the bill which is to be prepared in ink on prescribed
form and submitted in duplicate to the Financial Adviser and Chief
Accounts Officers, Stores Accounts Branch, Northern Railway,
Baroda House, New Delhi-110001.

b. Where the condition of advance payment on proof of dispatch is

accepted and specified in the Purchase Order, the supplier will
submit advance payment bill (in duplicate) supported with challan,
inspection certificate, proof of dispatch/delivery etc. as per terms of
the contract to the FA&CAO/Stores Account Branch, Baroda House,
New Delhi-110001, endorsing a copy of the forwarding letter to the
Controller of Stores as well as to the Consignee. The bills for
balance payment should be submitted in the manner as indicated at
(a) above for payment.

17.3 For materials supplied against orders placed for direct dispatch to the
consignee on this Railway on non-stock basis i.e. other than those cases
mentioned in clause 17.2 above, the supplying firm will prepare their 100%
payment bills in duplicate, in ink on prescribed forms and submit the same
as under: -

a. One copy of the bill marked “ORIGINAL” with all dispatch

documents as per terms of contract directly to the consignee.

b. Another copy of bill marked “DUPLICATE/NOT FOR

PAYMENT” to the Controlling Officer of the consignee mentioned
in Supply Order.

c. Where the condition of advance payment on proof of dispatch is

accepted and specified in the Direct Dispatch Order, the suppliers

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will submit advance payment bill (in duplicate) along with the
documents as per Para 17.2 (b) above to the Paying Authority of the
consignee indicated in Supply Order. Original copy of the balance
payment bill should be sent to the consignee and “DUPLICATE/NOT
FOR PAYMENT” copy to the Controlling Officer of the consignee as
specified in such Supply Order.

17.4 The Supplier is also required to furnish the following certificate on their bill
for advance payment.

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

17.5 The bill for payment should also be accompanied by the following
certificate to be furnished by the Suppliers who are registered with GST
authorities for availing Input credit:-

“We certify that no additional Input Credit on the stores supplied by us have
accrued under the GST scheme in force on the date of supply, after we
submitted quotations and submitted the present bill”.

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

17.7 In case the bill is submitted to FA&CAO (SAB) supported by amendment to

purchase order extending delivery period reserving Railways right to impose
liquidated damages, the payment of bill would be released deducting full
liquidated damages (LD) @ 0.5% per week or part thereof of the value of
delayed stores.

17.8 Following points may also be observed by the suppliers while submitting
the bills for payment in offline mode

a. Consignee’s name and Purchase Order reference should be given on

the bill as well as in all correspondence in connection therewith for
facility of connecting the papers and arranging early payment.

b. The firms are advised that bills for payment should only be
submitted for the amounts permitted on the Purchase Orders, and in
case further amounts are claimed, an amendment should be

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obtained from the Controller of Stores, Northern Railway, Baroda

House, New Delhi before bills are submitted.

c. All offline Bills should be submitted in forms S-2817 in duplicate,

marked ‘Original’ and ‘Duplicate” These bill forms can be had from
the office of Controller of Stores, Northern Railway, Baroda House,
New Delhi on payment @ ₹60/- per book containing 100 forms each
in cash to the Divisional Cashier, Northern Railway Baroda House,
New Delhi or through Crossed Demand Draft in favour of the
FA&CAO (SAB), Northern Railway, Baroda House, New Delhi.

d. The nomenclature of the material supplied shown in the bills should

be strictly in accordance with description given in the Purchase
Order.

e. The offline Bills should be signed and pre-receipted with revenue

stamp. All corrections should be attested. Fluid should not at all be
used on the bill.

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

g. Status/Category of offline Bill should be mentioned i.e. whether

Advance/Balance/100%/ PVC etc.

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

i. Wherever PVC is applicable, basis of PVC may be given, with

relevant documents.

j. Copy of Amendment letter issued by Stores Department, if any, be

enclosed.

k. Transport Receipt/Challan for freight charges should be enclosed

along with the bills.

l. In case of Advance Payment, following documents should also be

enclosed along with the offline bills:-

(i) Receipt delivery Challan duly signed and stamped by

Gazetted Officer/Clear Railway Receipt.
(ii) Original Inspection Certificate.
(iii) Excise Invoice (original-for buyer) wherever applicable.
(iv) MODVAT declaration

m. In case of 100% and Balance Bills, the following documents to be

enclosed along with the offline bills:-

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(i) Receipt Note Part-II

(ii) ED gate pass wherever applicable.

n. All other relevant documents as per contract provisions.

18.0 Fall Clause -

18.1 Fall Clause shall be applicable only in Rate Contracts & as under-

“1. The price charged for the stores supplied under the Contract by the
contractor shall in no event exceed the lowest price at which the
contractor sells the stores or offer to sell stores of identical
description to any persons/organizations including the purchaser or
any Department of Central Government or any Railway Office or
any Railway undertaking, as the case may be, during currency of
the contract. The lower price will be applicable to supplies made
after the date of coming into force of such reduction or sale or offer
to sell at a reduced rate.

2. If at any time during the said period the contractor reduces the sale
price, sells or offers to sell such stores to any persons,
organizations including the purchaser or any Department of Central
Government or any Railway Office or any Railway Undertaking as
the case may be at a price lower than the price chargeable under
the contract, they shall forthwith notify such reduction or sale or
offer of sale to the purchaser and the price payable under the
contract for the stores supplied after the date of coming into force
of such reduction or sale or offer of sale, shall stand
correspondingly reduced.

3. The Contractor shall furnish the following certificate to the

concerned Accounts Officer along with each bill for payment of
supplies made against the contract.

“I/We certify that there has been no reduction in sale price of the
stores of description identical to the stores supplied to the
Government under the contract herein and such stores have not
been offered / sold by me/us to any person / organization including
the purchaser or any Department of Central Government or any
Railway Office or any Railway Undertaking as the case may be, up
to the date of bill, at a price lower than the price charged to the
Government under the contract.”

19.0 Rejected Material

19.1 Materials peculiar to railways such as parts and fittings of rolling stock
except raw materials, which have been rejected during inspection and
which could not be rectified are required to be defaced by the inspecting
authority to avoid recycling of such rejected materials, and to avoid ultimate

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failures of assets. All such rejected materials peculiar to railways should be

mechanically defaced to prevent sale to railways again.

19.2 Franking Clause on Acceptance and Rejection

The issue of this inspection/rejection report does not acquiesce or condone

the late delivery and does not intend or amount to an extension of the
delivery period or keeping the contract alive. The goods are being
passed/rejected without prejudice to the rights of the buyer under the terms
and conditions of the contract.

20.0 Marking of Store

Contractor/Manufacturer must inscribe/engrave/screen-print/emboss

vendor’s name/identification marks as well as month and year of
manufacture on item supplied to Northern Railway as per the relevant
drawing/specification/description. In case it is not stipulated in the
drawing/specification/description, then the location of these identification
should be such that they do not affect the functional utility and structural
stability of the components/ materials, and also do not get obliterated on
wear and tear.

For very small items where marking on individual item is not possible, the
vendor will arrange to print Vendor’s name/identification marks as well as
month and year of manufacture on standard packing, after obtaining
specific approval from the purchaser in each case. The decision of the
purchaser on whether such approval is to be granted or not shall be final
and binding.

21.0 Packing Instructions

21.1 Notwithstanding any packing condition stipulated in the tender documents

or in the tendered drawings/specifications, it shall be the responsibility of
the Contractor to appropriately pack the stores so that they are received by
the consignee at destination without any loss, destruction, damage or
deterioration due to any cause whatsoever.

21.2 The supplier will submit the packing list for each consignment truck-wise
and paste/print/paint labels on individual items mentioning the item
description and reference as mentioned in packing list to facilitate ease of
receipt and accountal at depot.

21.3 Wherever feasible, supplier will pack items set-wise to facilitate receipt and
accountal of materials. As far as possible, packing should be done in such
a way that it will facilitate easy stacking and vertical space utilization.

21.4 All suppliers shall ensure that the supplies including packing materials must
comply Plastic Waste Management Rules 2016 and amendments thereof.

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22.0 Warranty/Guarantee

Warranty clauses as per IRS Conditions of Contract or as specified in

tender schedule will be applicable.

In case, there is a discrepancy regarding warranty period mentioned in

specification/description and standard warranty clause as per IRS condition
of contract, then warranty period mentioned in specification/description
shall prevail.

23.0 Handling of rejection of pre-inspected item and warranty rejection:

[Authority Railway Board`s letter No.2000/RS(G)/379/2 dated 07.08.2015
&18.01.2018]

Two kinds of rejection occur in case of pre-inspected supplies made by

vendor.

23.1 Pre-inspected material rejected by consignee at the time of receipt:

(i) In case of rejection of pre-inspected goods at consignee end, the

material rejection advice/rejection memo should be sent by
consignee to all concerned i.e. firm, purchaser, pre-inspecting
agency, paying authority as per the contract etc. without fail.

(ii) Financial recovery: In case payment has been made to the firm for
the material, the concerned paying authority as per contract should
note the rejection advice details in its recovery register for effecting
recovery of payment made, as the case may be.

(iii) If the firm desires to have joint inspection, joint inspection of rejected
material will held with pre-inspecting agency and the time. In case of
failure of either of the two parties to associate with joint inspection,
the joint inspection should be held by the consignee with whichever
of the two parties comes for joint inspection. Irrespective of whether
the party(ies) attend joint inspection or not, the modality of joint
inspection etc will have to be completed within 21 days of
communication of rejection advice to the supplier (in line with IRS
Condition of Contract clause 703). For imported material, the time
limit will be 45 days.

(iv) Firm may be permitted to collect the rejected goods only after the
firm has deposited the payments already made by Railway (if any) to
the firm or equivalent amount has been recovered for this purpose.

(v) In case of replacement supply against the rejected goods, the same
should be pre-inspected by same pre-inspecting agency who
passed the material earlier. In line with IRS Conditions of Contract
clause 703, no inspection charge will be paid by Railway to the
inspection agency for the replacement supply.

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(vi) However, in case of component level rejection in an pre-inspected

item (which is an assembly) the replacement supply of that
component can be accepted based on firm’s internal inspection
certificate/guarantee certificate and final inspection by consignee.

23.2 Material rejected in warranty:

23.2(i) Materials are rejected in warranty in the following situations:

(a) The material rejected was issued to the user (shop/shed etc.)
from its associate stores depot.

(b) The material rejected was received by the user from a PU or

from a stores depot which is not the associate stores depot of
the user.

Cat 23.2(i)(a)

For warranty failure in shop/shed of material issued from its associate

stores depot: All warranty claims will be lodged by the associate depot
officer after getting the warranty rejected material from user under advice
note of return stores with reasons of warranty rejection indicated therein.
Before lodging the warranty claim the associate depot officer will satisfy
himself about the correctness of PO and ensure that other details including
reason(s) of warranty rejection are available with the advice note of return
stores. The warranty claim will be processed following procedure indicated
in sub-para 23.1 (i), (ii), (iii) and(iv) of para 23.0 above except for the
following changes: The ‘rejection advice mentioned in para 23.1(i) will be
replaced by the ‘warranty rejection advice’. The time which can be taken for
the completion of modality of joint inspection as per para 23.1(iii) will be 45
days (instead on 21 days) from the date of communication of rejection
advice to the supplier. More time is being given for joint inspection because
this is a case wherein supplies have already been taken into the use
system of Railways. Thus, either the pre-inspection agency or the firm or
the Railways may like to have a more detailed understanding of the failure.

Cat 23.2(i)(b)

For Warranty failure in shop/shed of material received from PU (either

under sale issue note or as a purchased component of rolling stock
manufactured at the PU) of from a stores depot (under inter depot
transfer/sale issue note) which is not the associate stores depot of the end
user.

(i) In such cases it may not be convenient for the end user to return the
material to the stores depot (against which the original supply was made by
the vendor to Railway). Thus in all such cases, the warranty rejected
material will be kept in safe custody by the end user and the stores
depot(which received the original supply) will be advised by the end user

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about the warranty rejection duly indicating the reason(s) of rejection with a
confirmation that the rejected material is under end user’s custody.

(ii) The stores depot (which received the original supply) will raise warranty
claim on the firm. Before lodging the warranty claim, the depot officer will
satisfy himself about the correctness of PO and ensure that other details
including reason(s) of warranty rejection are available from the end user.
The warranty claim will be processed following procedure indicated in sub-
para 23.1 (i), (ii), (iii) and (iv) of para 23.0 above except for the following
changes: The ‘rejection advice’ mentioned in para 23.1(i) will be replaced
by the ‘warranty rejection advice’. The time which can be taken for the
completion of modality of joint inspection as per Para 23.1(iii) will be 45
days (instead of 21 days) from the date of communication of rejection
advice to the supplier. More time is being given for joint inspection because
this is a case wherein supplies have already been taken into the usage
system of Railways. Thus, either the pre-inspection agency or the firm or
the Railways may like to have a more detailed understanding of the failure.

For imported material or the consignment, the time limit in 23.2(i)(a) and
23.2(i)(b) (ii) will be 90 days instead of 45 days.

23.2(ii) Warranty quantity replacement:

The warranty quantity replacement will be accounted under warranty

R-note by the depot officer (which raised the warranty claim as in
sub-para 23.2(i)(a) above).

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

23.2 (iii) Inspection of the replacement supply against warranty

rejection:

(A) For cases of replacement supply against warranty failure

falling in the category 23.2(i)(a) above, the replacement
supply should normally be inspected by the same inspection
agency which inspected and passed original supply. Thus for
23.2(i)(a), any change in inspecting authority for the warranty
replacement will necessitate a formal amendment in contract.

(B) In case of warranty rejection of item of the 23.2(i)(b) above, it

may in some cases be difficult to re-use the services of
inspecting agency which passed the original supply. Similarly
for some items, the end user/consignee may not have the
requisite inspection facility/expertise.

Thus for warranty rejection falling under the clause 23.2(i)(b):

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(i) The replacement supply can be inspected by the same

inspecting agency which inspected and passed the original
supply. Payment of inspection charges will be borne by
supplier.

OR

The replacement supply can be inspected by authorized

representative of consignee.

OR

The replacement supply can be made by firms own internal

inspection certificate.

(ii) The decision on the above will rest with the depot officer who
raised the warranty claim and will be indicated in the warranty
claim notice.

(C) However, in case the warranty failure is of a component of an

assembly supplied, the component can be accepted on firm’s
own Guarantee Certificate/internal inspection certificate and
consignee’s final inspection under both the clauses 23.2(i)(a)
and 23.2(i)(b) of warranty failure.

23.2(iv) Place of warranty replacement- For warranty replacement of cases

under clause 23.2(i)(a), in order to ensure correct accountal of
warranty replacement, the place of warranty replacement will be the
depot which received the original supply. For warranty replacement
of failure falling under clause 23.2(i)(b) above, an exemption can be
made and the place of replacement supply can be indicated by the
depot officer (at his option) in the warranty claim notice to the firm to
be the end-user’s place.

23.2(v) For warranty replacement of the para 23.2(i)(b), due care will be
taken by the end user to ensure that accountal of replacement
supply etc. are properly taken care of. After settlement of warranty
claim the rejected material will be handed over by the end user to
the firm’s representative. The end user will also inform the depot
officer who raised warranty claim about the replacement.

23.3 At the option of the depot officer/end-user, rectification of the material

rejected (under clause 23.1 and 23.2) may be permitted within railway
premises by the firm only after the firm has refunded the payment (if
already made by Railway) or equivalent amount has been withheld for this
purpose. However, from the date of communication of rejection, the
rectification activity has to be completed within 21/45 days for
indigenous/imported material respectively for the rejection of the category

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23.2. If more time is taken beyond this, applicable ground rent will be levied
on the firm.

23.4 In order that quantity shortfall due to warranty failure of clause 23.2(i)(a) is
made up, the depot officer may prepare an additional demand (equal to the
quantity failed in warranty) for procurement, once recovery towards
warranty has been confirmed by Accounts. Any warranty replacement
subsequently made will automatically get reflected in stock and thus there
will not be any net extra procurement. It will however ensure timely
availability of materials.

24.0 Settlement of Dispute/Arbitration

[Authority Railway Board`s Transformation Cell letter No.2018/TF/Civil/Arbitration
Policy dated 12.12.2018]

If an amicable settlement is not forthcoming, recourse may be taken to the

settlement of disputes through arbitration as per the Arbitration and
Conciliation Act 1996 and as amended from time to time.

24.1 Conciliation of Disputes:

All disputes and differences of any kind whatsoever arising out of or in

connection with the contract, whether during the currency of the contract or
after its completion and whether before or after the determination of the
contract, shall be referred by any of the parties to the concerned "Chief
Materials Manager (CMM)" or "Divisional Railway Manager" or “Executive
Director” through “Notice of Dispute”. CMM or Divisional Railway Manager
or Executive Director shall, within 30 days after receipt of “Notice of
Dispute”, notify the name of sole conciliator to the parties.

The Conciliator shall assist the parties to reach an amicable settlement in

an independent and impartial manner within the terms of contract.

If the parties reach agreement on settlement of the dispute, they shall draw
up a written settlement agreement duly signed by parties and conciliator.
When the parties sign the settlement agreement, it shall be final and
binding on the parties.

The parties shall not initiate, during the conciliation proceedings, any
arbitral or judicial proceedings in respect of dispute that is the subject
matter of the conciliation proceedings.

The conciliation proceedings shall be terminated:

1. By the signing of the settlement agreement, on the date of

agreement; or
2. By written declaration of the conciliator, after consultation with the
parties, to the effect that further efforts at conciliation are no longer
justified, on the date of declaration; or

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3. By a written declaration of any party to the conciliator to the effect

that the conciliation proceedings are terminated, on the date of
declaration;

24.2 Matters Finally Determined by the Railway:

All disputes and differences of any kind whatsoever arising out of or in

connection with the contract, whether during the currency of the contract
or after its completion and whether before or after the determination of the
contract, shall be referred by the Contractor to the General Manager (for
the purpose of para 24.0 the term General Manager shall imply Additional
General Managers of Zonal Railways, General Managers for Production
Units, Director General (Railway Stores), Member of the Railway Board,
Head of the Orgainsation in case of contracts entered into by other
organizations under the Ministry of Railways) and the General Manager
shall, within 120 days after receipt of the representation, make and notify
decisions on all matters referred to by the Contractor in writing. Provided
that matters for which provision has been made in any Clause of the
Special or General Conditions of the Contract shall be deemed as
‘excepted matters’ (matters not arbitrable) and decisions of the Railway
authority, thereon shall be final and binding on the Contractor; provided
further that ‘excepted matters’ shall stand specifically excluded from the
purview of the Arbitration Clause. Provided further that where Railways
has raised the dispute, para 24.2 shall not apply.

24.3 Demand for Arbitration:

24.3(i):

In the event of any dispute or difference between the parties hereto as to

the construction or operation of this contract, or the respective rights and
liabilities of the parties on any matter in question, dispute or difference on
any account or if the Railway fails to make a decision within 120 days (as
referred in 24.2), then and in any such case, but except in any of the
“excepted matters” referred to in Clause 24.2 of these Conditions, parties
to the Contract, after 120 days but within 180 days of their presenting their
final claim on disputed matters shall demand in writing that the dispute or
difference be referred to arbitration. Provided that where the claim is raised
by Railways para 24.3(i) shall not apply.

24.3(ii)(a):

The demand for arbitration shall specify the matters which are in question,
or subject of the dispute or difference as also the amount of claim item-
wise. Only such dispute or difference, in respect of which the demand has
been made, together with counter claims or set off, shall be referred to
arbitration and other matters shall not be included in the reference.

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24.3(ii)(b):
The parties may waive off the applicability of Sub-Section 12(5) of
Arbitration and Conciliation Act 1996 (as amended), if they agree for such
waiver in writing, after dispute having arisen between them.
24.3(iii)(a):
The Arbitration proceedings shall be assumed to have commenced from
the day, a written and valid demand for arbitration is received by the
Railway.
24.3(iii)(b):
The claimant shall submit his claims stating the facts supporting the claims
along with all the relevant documents and the relief or remedy sought
against each claim within a period of 30 days from the date of appointment
of the Arbitral Tribunal.
24.3(iii)(c):
Respondent shall submit its defence statement and counter claim(s), if any,
within a period of 60 days of receipt of copy of claims from Tribunal, unless
otherwise extension has been granted by Arbitral Tribunal.

24.3(iii)(d):

Place of Arbitration: The place of arbitration would be within the

geographical limits of the Division of the Railway where the cause of action
arose or the Headquarters of the concerned Railway or any other place
with the written consent of both the parties.
24.3(iv):

No new claim shall be added during proceedings by either party. However,

a party may amend or supplement the original claim or defence thereof
during the course of arbitration proceedings subject to acceptance by
Tribunal having due regard to the delay in making it.

24.4: Obligation During Pendency of Arbitration:

Supplies under the contract shall, unless otherwise directed by the
Purchase Office, continue during the arbitration proceedings, and no
payment due or payable by the Railway shall be withheld on account of
such proceedings, provided, however, it shall be open for Arbitral Tribunal
to consider and decide whether or not supplies should continue during
arbitration proceedings.

24.5 Appointment of Arbitrator:

24.5(a):
Appointment of Arbitrator where applicability of section 12 (5) of
Arbitration and Conciliation Act has been waived off:

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(i): In cases where the total value of all claims in question added
together does not exceed ₹ 1,00,00,000/- (Rupees One Crore
only), the Arbitral Tribunal shall consist of a Sole Arbitrator who
shall be a Gazetted Officer of Railway not below Junior
Administrative Grade, nominated by the General Manager. The sole
arbitrator shall be appointed within 60 days from the day when a
written and valid demand for arbitration is received by General
Manager.

(ii): In cases where the total value of all claims in question added
together exceeds₹ 1,00,00,000/- (Rupees One Crore only), the
Arbitral Tribunal shall consist of a panel of three Gazetted Railway
Officers not below Junior Administrative Grade or 2 Railway
Gazetted Officers not below Junior Administrative Grade and a
retired Railway Officer, retired not below the rank of Senior
Administrative Grade Officer, as the arbitrators. For this purpose, the
Railway will send a panel of at least four (4) names of Gazetted
Railway Officers of one or more departments of the Railway which
may also include the name(s) of retired Railway Officer(s)
empanelled to work as Railway Arbitrator to the Contractor within 60
days from the day when a written and valid demand for arbitration is
received by the General Manager.

Contractor will be asked to suggest to General Manager at least 2

names out of the panel for appointment as Contractor’s nominee
within 30 days from the date of dispatch of the request by Railway.
The General Manager shall appoint at least one out of them as the
Contractor’s nominee and will, also simultaneously appoint the
balance number of arbitrators either from the panel or from outside
the panel, duly indicating the ‘presiding arbitrator’ from amongst the
3 arbitrators so appointed. General Manager shall complete this
exercise of appointing the Arbitral Tribunal within 30 days from the
receipt of the names of Contractor’s nominees. While nominating the
arbitrators, it will be necessary to ensure that one of them is from the
Accounts Department. An officer of Selection Grade of the Accounts
Department may be considered of equal status to the officers in
Senior Administrative Grade of other departments of the Railway for
the purpose of appointment of arbitrator.

(iii): The serving railway officer working in arbitral tribunal in the ongoing
arbitration cases as per clause 24.5(a)(i) and clause 24.5(a)(ii)
above, can continue as arbitrator in the tribunal even after his
retirement.

24.5(b):
Appointment of Arbitrator where applicability of Section 12 (5) of
Arbitration and Conciliation Act has not been waived off:

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(i) In cases where the total value of all claims in question added
together does not exceed ₹ 50,00,000/- (Rupees Fifty Lakh only),
the Arbitral Tribunal shall consist of a Retired Railway Officer, retired
not below the rank of Senior Administrative Grade Officer, as the
arbitrator. For this purpose, the Railway will send a panel of at least
four (4) names of retired Railway Officer(s) empanelled to work as
Railway Arbitrator duly indicating their retirement dates to the
Contractor within 60 days from the day when a written and valid
demand for arbitration is received by the General Manager.
Contractor will be asked to suggest to General Manager at least 2
names out of the panel for appointment as arbitrator within 30 days
from the date of dispatch of the request by Railway. The General
Manager shall appoint at least one out of them as the arbitrator.
(ii) In cases where the total value of all claims in question added
together exceed ₹ 50,00,000/- (Rupees Fifty Lakh only), the
Arbitral Tribunal shall consist of three (3) retired Railway Officer,
retired not below the rank of Senior Administrative Grade Officer.
For this purpose, the Railway will send a panel of at least four (4)
names of retired Railway Officer(s) empanelled to work as Railway
Arbitrator duly indicating their retirement date to the Contractor
within 60 days from the day when a written and valid demand for
arbitration is received by the General Manager.

Contractor will be asked to suggest to General Manager at least 2

names out of the panel for appointment as Contractor’s nominee
within 30 days from the date of dispatch of the request by Railway.
The General Manager shall appoint at least one out of them as the
Contractor’s nominee and will, also simultaneously appoint the
balance number of arbitrators either from the panel or from outside
the panel, duly indicating the ‘Presiding Arbitrator’ from amongst the
3 arbitrators so appointed. General Manager shall complete this
exercise of appointing the Arbitral Tribunal within 30 days from the
receipt of the names of Contractor’s nominees. While nominating the
arbitrators, it will be necessary to ensure that one of them has
served in the Accounts Department.

24.5(c)(i):
If the contractor does not suggest his nominees for the arbitral
tribunal within the prescribed timeframe, the General Manager shall
proceed for appointment of arbitral tribunal within 30 days of the
expiry of such time provided to contractor.
24.5(c)(ii)

If one or more of the arbitrators appointed as above refuses to act as

arbitrator, withdraws from his office as arbitrator, or vacates his/their
office/offices or is/are unable or unwilling to perform his functions as
arbitrator for any reason whatsoever or dies or in the opinion of the General
Manager fails to act without undue delay, the General Manager shall
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appoint new arbitrator/arbitrators to act in his/their place in the same

manner in which the earlier arbitrator/arbitrators had been appointed. Such
re-constituted Tribunal may, at its discretion, proceed with the reference
from the stage at which it was left by the previous arbitrator (s).

24.5(c)(ii)(a)

Fast Track Procedure: Parties to the arbitration agreement, may, at any

stage either before or at the time of appointment of the arbitral tribunal,
agree in writing to have their dispute resolved by fast track procedure
specified in Section 29B of the Arbitration & conciliation Act, 1996, as
amended.

24.5(c)(ii)(b)

Before proceeding into the merits of any dispute, the Arbitral Tribunal shall
first decide and pass its orders over any plea submitted/objections raised
by any party, if any, regarding appointment of Arbitral Tribunal, validity of
arbitration agreement, jurisdiction and scope of the Tribunal to deal with the
dispute (s), submitted to arbitration, applicability of time ‘Limitation’ to any
dispute, any violation of agreed procedure regarding conduct of the artibral
proceedings or plea for interim measures of protection and record its
orders in day to day proceedings. A copy of the proceedings duly signed by
all the members of tribunal should be provided to both the parties.

24.5(c)(iii):

(i) Qualification of Arbitrator (s):

(a) Serving Gazetted Railway Officers of not below JA Grade level.

(b) Retired Railway Officers not below SA Grade level, one year after his
date of retirement.
(c) Age of arbitrator at the time of appointment shall be below 70 years.
(ii) An arbitrator may be appointed notwithstanding the total number of
arbitration cases in which he has been appointed in the past.

(iii) While appointing arbitrator(s) under Sub-Clause 24.5(a)(i), 24.5(a)(ii),

24.5(b)(i) & 24.5(b)(ii) above, due care shall be taken that he/they is/are not
the one/those who had an opportunity to deal with the matters to which the
contract relates or who in the course of his/their duties as Railway
servant(s) expressed views on all or any of the matters under dispute or
differences. A certification to this effect as per annexure shall be taken from
Arbitrators. The proceedings of the Arbitral tribunal or the award made by
such Tribunal will, however, not be invalid merely for the reason that one or
more arbitrator had, in the course of his service, opportunity to deal with
the matters to which the contract relates or who in the course of his/their
duties expressed views on all or any of the matters under dispute.

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24.5(d)(i):

The arbitral award shall state item wise, the sum and reasons upon which it
is based. The analysis and reasons shall be detailed enough so that the
award could be inferred there from.

24.5(d)(ii):

A party may apply for corrections of any computational errors, any

typographical or clerical errors or any other error of similar nature occurring
in the award of a Tribunal and interpretation of a specific point of award to
Tribunal within 60 days of receipt of the award.

24.5(d)(iii):

A party may apply to Tribunal within 60 days of receipt of award to make an

additional award as to claims presented in the arbitral proceedings but
omitted from the arbitral award.

24.6 In case of the Tribunal, comprising of three members, any ruling on award
shall be made by a majority of members of Tribunal. In the absence of such
a majority, the views of the Presiding Arbitrator shall prevail.

24.7 Where the arbitral award is for the payment of money, no interest shall be
payable on whole or any part of the money for any period till the date on
which the award is made.

24.8(a)

The cost of arbitration shall be borne by the respective parties. The cost shall
inter-alia include fee of the arbitrator(s), as per the rates fixed by Railway Board
from time to time and the fee shall be borne equally by both the parties. Further,
the fee payable to the arbitrator(s) would be governed by the instructions issued
on the subject by Railway Board from time to time irrespective of the fact whether
the arbitrator(s) is/are appointed by the Railway Administration or by the court of
law unless specifically directed by Hon’ble Court otherwise on the matter.

24.8(b)
Sole arbitrator shall be entitled for 25% extra fee over the fee prescribed by
Railway Board from time to time.

24.9 The Micro, Small and Medium Enterprises Development (MSMED) Act,
2006 provides parties to a dispute (where one of the parties is a Micro or
Small Enterprises) to make a reference to Micro and Small Enterprises
Facilitation Council, if the dispute is in regard to any amount due under
Section 17 of the MSMED Act, 2006. In case a Micro or Small Enterprises,
being a party to dispute, makes a reference under the provisions in
MSMED Act 2006, the provisions of the MSMED Act 2006, shall prevail
over conciliation and arbitration agreement as contained in the contract.

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24.10 Subject to the provisions of the aforesaid Arbitration and Conciliation Act
1996 and the rules there under and relevant para of IRS Conditions of
Contract and any statutory modifications thereof shall apply to the
appointment of arbitrators and arbitration proceedings under this Clause.

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 ITT_Rev_1.19_September_2022

ANNEXURE-1
(Refer Para 12.2.1, 12.2.3(f))

PROFORMA FOR BANK GUARANTEE FOR CONTRACT PERFORMANCE

GUARANTEE
Ref ………………………….. Date…………………………………..
Bank Guarantee No………………...…………………………………………............

To

The President of India,

Acting through the Controller of Stores,
Northern Railway, Baroda House,
New Delhi- 110 001

1. Against contract concluded by the Advance Acceptance of the Tender

No………., dated …………..covering supply of
……………………………(Hereinafter called the said contract) entered into
between the President of India and ………………………………………
(hereinafter called the ‘Contractor’), this is to verify that at the request of
the Contractor we, ………………………………. Bank Ltd., are holding in
trust in favour of the President of India, the amount of
…………………………………………………(write the sum here in words) to
indemnify and keep indemnified the President of India (Govt. of India)
against any loss or damage that may be caused to or suffered by the
President of India (Govt. of India) by reason of any breach by the
Contractor of any of the terms and conditions of the said contract and/or
the performance thereof. We agree that the decision of the President of
India (Govt. of India), whether any breach of any of the terms and
conditions of the said contract and/or in the performance thereof has been
committed by the Contractor and the amount of loss or damage that has
been caused or suffered by the President of India (Govt. of India) shall be
final and binding on us and the amount of the said loss or damage shall be
paid by us forthwith on demand and without demur to the President of India
(Govt. of India).

2. We, ……………………………... Bank Ltd., further agree that the guarantee

herein contained shall remain in full force and effect during the period that
would be taken for satisfactory performance and fulfilment in all respects of
the said contract by the Contractor i.e. till………………………. (viz. the
date upto 2 months after the date of the last despatch/delivery of the goods
ordered) hereinafter called the ‘said date’ and that if any claim accrues or
arises against us (……………………………... Bank Ltd.), by virtue of this
guarantee before the said date, the same shall be enforceable against us
(……………………………... Bank Ltd.), notwithstanding the fact that the
same is enforced within six months after the said date, provided that notice
of any such claim has been given to us……………………………...
…………… Bank Ltd., by the President of India (Govt. of India) before the
said date. Payment under this letter of guarantee shall be made promptly

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 ITT_Rev_1.19_September_2022

upon receipt of notice to that effect from the President of India (Govt. of
India).

3. It is fully understood that this guarantee is effective from the date of the
said contract and that we……………………………... Bank Ltd., undertake
not to revoke this guarantee during its currency without the consent in
writing of the President of India (Govt. of India).

4. We undertake to pay to the Government any money so demanded

notwithstanding any dispute or disputes raised by the Contractor in any suit
or proceedings pending before any court or Tribunal relating thereto, our
liability under this present being absolute and unequivocal. The payment so
made by use under this bond shall be a valid discharge of our liability for
payment thereunder and the Contractor shall have no claim against us for
making such payment.

5. We……………………………... Bank Ltd., further agree that the President of

India (Govt. of India) shall have the fullest liberty, without affecting in any
manner our obligations hereunder to vary any of the terms and conditions
of the said contract or to extend time of performance by the Contractor
from time to time or to postpone for any time or from time to time any of the
powers exercisable by the President of India (Govt. of India) against the
said contract and we……………………………... Bank Ltd., shall not be
released from our liability under this guarantee by reason of any such
variation or extension being granted to the said Contractor or for any
forbearance and/or omission on the part of by the President of India or any
indulgence by the President of India to the said Contractor or by any other
matter or thing what-so-ever which under the law relating to sureties,
would, but for this provision, have the effect of so releasing us from our
liability under this guarantee.

6. This guarantee will not be discharged due to change in the constitution of

the Bank or the Contractor.

Date…………………………….Signature……………………………………….
Place……………………… Name………………………………….
Witness ………………………………………………….

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 ITT_Rev_1.19_September_2022

ANNEXURE-2
(Refer Para 12.8)

No Claim Certificate

PO/Contract No…………………………………………………….Date ……….………

For supply of........................................................ (Brief description of material)
Quantity-…………………………Units (as per PO).

The above contract has been completed and I/We have no claim on Northern
Railways in respect of the said contract.

The security deposit amount of ₹.………….......……(Rupees

……………………………………………………...…..) lodged by us with Northern
Railways in the form of …………………………………………(Deposit receipts, Pay
orders, Demand Drafts, Guarantee Bonds etc.) may therefore please be refunded
to me/us.

Place:

Date:

Signature and full address of the Contractor

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 ITT_Rev_1.19_September_2022

ANNEXURE-3
(Refer Para 2.5(v)(a))

Proforma for Performance Statement

(FOR A PERIOD OF LAST 5 FINANCIAL YEARS & CURRENT FINANCXIAL

YEAR)

Tender No. ………………………………………Date of opening ……………………

Name of the firm………………………………………………………………………….

Date of
completion
Remarks
Unit Have the stores
Order indicating
Order placed by Description of Price, been
No. No. & reasons for
(full address of ) stores ED, ST & satisfactorily
date late delivery,
FOR As per supplied
Actual if
contract

Signature and Seal of tenderer(s)

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 ITT_Rev_1.19_September_2022

ANNEXURE-4
(Refer Para 2.5(v)(b), 10.2)

Proforma for Equipment and Quality Control

Tender No……………………….................. Date of opening…………….....

Name of the firm…………………………………………………………………….....

Note:-All details required only for the items tendered

1. Name & Full address of the firm.

2. Telephone & Fax No. Office/Factory/Works.

3. E mail address.

4. Location of the manufacturing factory.

5. Details of Industrial Licence, wherever required as per statutory

regulations.

6. Details of Plant & Machinery erected and functioning in each Deptt.

(Monographs & description pamphlets be supplied if available).

7. Details of the process of manufacture in the factory in brief.

8. Details & Stock of raw material held.

9. Production Capacity of item(s) quoted for, with the existing plant &
Machinery.

9.1 Normal

9.2 Maximum

10. Details of arrangement for quality control of products such as laboratory

testing equipments etc.

11. Details of Staff

11.1 Details of technical supervisory staff-in-charge of production &

quality control

11.2 Skilled labour employed

11.3 Unskilled labour employed

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 ITT_Rev_1.19_September_2022

11.4 Maximum No. of workers (skilled and unskilled) employed on any

day during the 18 months preceding the date of application.

12. Whether stores are tested to any standard specification, if so, copies of
original test certificates should be submitted in triplicate.

13. Are you registered with the Directorate General of Supplies & Disposals,
New Delhi. If so, furnish full particulars of registration, period of currency
etc.

14. Are you a Small Scale Unit, registered with National Small Industries
Corporation Ltd., New Delhi. If so, furnish full particulars of registration,
currency period etc.

Signature and Seal of tenderer(s)

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 ITT_Rev_1.19_September_2022

ANNEXURE-5
(Refer Para 2.5(iii))
Proforma for Manufacturer Authorization Form

No………………………………………… Dated………………….

To,

The President of India,

Acting through the Principal Chief Materials Manager,
Northern Railway, Baroda House,
New Delhi- 110 001

Dear Sir,

Subject: PCMM/N.Rly/New Delhi’s Tender No………………………………...

We…………………………………… an established and reputed manufacturer of

…………………………, having factories at……………..……………………………do
hereby authorize M/s……………………………….(Name and address of Agents) to
represent us, to bid, negotiate and conclude the contract on our behalf with you
and against Tender No……………………due on

No company/firm or individual other than M/s ………………………are authorized

to represent us in regard to this business against this specific tender.

Yours Faithfully

(Name)
For & on behalf of M/s……………………..(Name of Manufacturers)

Note:-This letter of authority should be on the Letter Head of the manufacturing

concern and should be signed by a person competent and having the power of
attorney to bind the manufacturer.

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 ITT_Rev_1.19_September_2022

ANNEXURE-6
(Refer Para 4.6.5(a))
Profroma for NEFT Mandate Form
From: M/s. ------------------- Date: -------------
To:

FA & CAO,
Northern Railway,
Baroda House, New Delhi-110001.

Sub: NEFT payments

We refer to the NEFT being set up by Northern Railway for remittance of our
payments using RBI's NEFT scheme. Our payments may be made through the
above scheme to our under noted account.

NATIONAL ELECTRONIC FUNDS TRANSFER MANDATE FORM

1. Name of City
2. Bank Code No.
3. Branch Code No.
4. Bank’s Name
5. Branch Address
6. Branch Telephone/ Fax No.
7. Suppliers Account No.
8. Type of Account
9. IFSC Code for NEFT
10. IFSC Code for RTGS
11. Supplier’s Name as per Account
12. MICR Code No.
In lieu of Bank Certificate to be obtained as under, please attach a bank cancelled
cheque or photocopy of a cheque or front page of your bank pass book

I hereby declare that the particulars given above are correct and complete. If the
transaction is delayed or not effected at all for reasons of incomplete or incorrect
information, I would not hold the user institution responsible. I have read the
option intimation letter and agree to discharge responsibility expected of me as a
participant under the scheme.

Date Signature of the Customer

Certified that the above particulars are correct as per our record.

Stamp and Signature

Of authorized official of the bank

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