Date: 02.06.

2024 Topic: GCC for Services

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 Question - 1
GCC for Services, 2018 issued by _____________

A. Finance Directorate

B. Engineering Directorate

C. Services Directorate

D. None of these
 Answer - 1
D. None of these

GCC for Services, 2018 issued by Innovation

& Transformation Cell

Next slide: Innovation & Transformation Cell

 Innovation & Transformation Cell
1. Constituted by Railway Board in 2017

2. PED – Principal Executive Director – in charge. 8 Nodal EDs from Traffic, Engineering, Mechanical, Electrical, S&T,
Personnel & Accounts.

3. It hires MBAs, [Link], Cas from private sector

4. It overrides all the other existing Directorates for issuing orders duly taking the approval of CRB and other related
Member

5. Mandated with the implementation of 55 new ideas made during Rail Vikas Shivir which was attended by PM in
November 2016

6. New Directorates i.e., NFR, Mobility, Environment & Heritage created.

7. Achievements so far: 1. MSOP 2. New GCC for Services 3. Revised GCC for Works etc
 Question - 2
Which is not comes under Service Contracts ?

A. Physical Maintenance

B. Housekeeping

C. Two Wheeler Parking

D. Consultancy
 Answer - 2
C. Two Wheeler Parking

It is comes under Earning Contract, not Service

Contract

Next Slide: What is Works Contract or Service

Contract or Earning Contract
 Types - Contracts

• Any subject matter of procurement other than Goods or Works

• The Work contemplated for delivery of services as per Drawings & Schedules set forth in the Bid forms &
required to be executed according to specification

• contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in
goods to the buyer for a price.
 Question - 3
Two Packet Tender is applicable for __________ (Services)

A. Tenders valued for Rs. 50 Lakhs

B. Tenders valued for Rs. 2 Crores

C. Tenders valued for Rs. 5 Crores

D. None of these
 Answer - 3

A. Tenders valued for Rs.

50 Lakhs
 Question - 4
Services – Bidders must not have suffered bankruptcy / insolvency
during the last _____

A. 1 Year

B. 2 Years

C. 5 Years

D. None of these
Answer - 4

C. 5 Years
 Question - 5
Services: JV (Joint Venture) Firms as bidder – Which of the following
statements is incorrect ?

A. Lead Member should be holding of above 51%

B. If JV includes Foreign Members, the Lead Member have to be Indian only

C. If JV is up to 3 Members, other member’s share is above 20%

D. If JV is more than 3 Members, other member’s share is above 15%

 Answer - 5
D. If JV is more than 3 Members, other
member’s share is above 15%
(Incorrect)

The Correct one is above 10%

 Question - 6
QCBS stands for ______ (Hint: Services)

A. Quality & Cost Based Selection

B. Quality & Contract Based Selection

C. Quotation & Contract Based Selection

D. None of these
 Answer - 6

A. Quality & Cost Based

Selection
 Question - 7
Services: QCBS is applicable for Tenders valued ______ and above

A. Rs. 50 Lakhs

B. Rs. 2 Crores

C. Rs. 5 Crores

D. Irrespective of Value
 Answer - 7
A. Rs. 50 Lakhs

The bid with the highest weighted combined

score (Quality & Cost) shall be selected
 Question - 8
Services: The weightage of Technical parameters i.e., Non financial
parameters should not exceed _____ the Total value of Tender

A. 60 %

B. 70 %

C. 80 %

D. 90 %
 Answer - 8
C. 80 %
The ratio of Quality & Cost
Quality Cost
70 30
60 40
50 50
 Question - 9
Services: SSS stands for _______ (like RRR movie)

A. Single Standard Service

B. Satisfactory Similar Service

C. Similar Single Schedule

D. Single Similar Service

 Answer - 9
D. Single Similar Service

✔ As specified by the Railway Authority, the Bidder should have

satisfactorily completed a SSS Contract in the previous 3 Fys and the
current FY

✔ Satisfactorily completed means - payment of bills amounting to 35% of

the advertised value of the Bid.
 Question - 10
Services: Work Experience – Which of the following statements is incorrect ?

A. By Private individuals – Not accepted

B. By Public/Private listed companies or Trusts whose annual turnover is Rs.

1000 Crores & above

C. 35% of advertised value of the Tender in previous 3 Fys & current FY

D. None of the above

 Answer - 10
B. By Public/Private listed companies or
Trusts whose annual turnover is Rs. 1000
Crores & above - Incorrect

The correct one is Rs.500 Crores & above

 Question - 11
Service Contracts: Financial Turnover – Which of the following statements is
correct ?

A. 150 % of the Bid Value in the last 3 FY plus the Current FY

B. Audited Balance Sheet duly certified by the Bank

C. T2 Liquidity – 10% of the estimated Bid Value

D. T2 Liquidity (liquid assets, lines of credit & other financial means to meet
Cash outflow) - From any Bank
 Answer - 11
A. 150 % of the Bid Value in the last 3 FY plus the Current FY - Correct

Other statements

B. Audited Balance Sheet - Certified by CA- Chartered Account. Not by the Bank

C. T2 Liquidity – 5% of the estimated Bid Value. Not 10%

D. T2 Liquidity (liquid assets, lines of credit & other financial means to meet Cash outflow) - From
Scheduled Banks only. Not from any Bank
 Question - 12
Services: EMD is rounding off to the nearest _______

A. Rs.1

B. Rs. 5

C. Rs. 10

D. Re. 100
 Answer - 12
C. Rs. 10

Works – EMD is rounding off to the nearest Rs. 100

Stores - EMD is rounding off to the nearest Rs. 10

 Question - 13
Services: What is the EMD for the Tender valued Rs. 300 Crores

A. Rs. 6 Crores

B. Rs. 1,51,50,000

C. Rs. 1,50,00,000

D. None of these
 Answer - 13
D. None of these

● The Correct Answer is Rs. 1 Crore

(Maximum EMD)

● Calculation – Next slide

 Explanation - 13
Calculation of EMD for Service Tender value Rs. 300 Crores

1. Upto Rs. 1 Crore – EMD is 2% - Rs. 2,00,000

2. Beyond Rs. 1 Crore – EMD is 0.5% - 0.5% on Rs. 299 Crores is
Rs.1,49,50,000

3. Total EMD on Rs.300 Crores is Rs. 2,00,000 + 1,49,50,000 =

1,51,50,000
4. However the the maximum EMD to be collected is Rs. 1 Crore

5. Hence EMD for Rs. 300 Crores is Rs. 1 Crore

 Question - 14
EMD of Services Tenders: Which one of the following statement is incorrect ?

A. EMD is applicable to all modes of Tenders (Open, Limited, Single etc)

B. If successful Tenderer abandon his Offer, the EMD will be forfeited.

C. Startups recognised by the Ministry of MSME are exempted from the

submission of EMD as well as the cost of Tender Form.

D. MSEs registered with DIC, KVIC, KVIB, NSIC, DHH are exempted from
submission of EMD as well as the cost of Tender Forms
 Answer - 14
C. Startups recognised by the Ministry of MSME are
exempted from the submission of EMD as well as
the cost of Tender Form.

Correct Answer: DPIIT

Next Slide: EMD exempted

 Explanation - 14
EMD exempted – Service Tenders

1. MSEs registered with DIC, KVIC, KVIB, NSIC, DHH

2. Any other body specified by the Ministry of MSME

3. Startups recognised by the DPIIT

Next slide: Abbreviations

 Explanation - 14
Abbreviations

1. MSE – Micro & Small Enterprises

2. DIC – District Industries Center
3. KVIC – Khadi & Village Industries Commission
4. NSIC – National Small Industries
5. DHH – Directorate of Handicraft & Handloom
6. DPIIT – Department for Promotion of Industries & Internal Trade
7. MSME – Micro, Small & Medium Enterprises
8. OBHS – On Board Housekeeping Services
 Question - 15
Services: The Bidder whose bid is accepted shall be required to appear in person
at the Railways office to execute the Contract document within ______ after
the receipt of notice issued by the Railway that such documents are ready.

A. 5 days

B. 7 days

C. 10 days

D. 15 days
Answer - 15

B. 7 days
 Question - 16
Services: Contract document (Agreement) signed by both the parties (Railways
& Contractor) is prepared in ____ copies and distribution of the said copies
to ____ respectively.

A. 2 Copies and Contractor & Executive respectively

B. 3 Copies and Contractor, Finance Dept & Executive respectively

C. 4 Copies and Contractor, Finance Dept, Executive & Audit Dept respectively

D. None of these
 Answer - 16
B. 3 Copies and Contractor,
Finance Dept & Executive
respectively
 Question - 17
Services: PG – Performance Guarantee – Which of the following statement is Correct one ?

A. 10 % of the Agreement Value

B. PG should be submitted in 4 equal parts i.e., each 2.5 % of the Contract value.

C. Due period is 30 days from the LOA. If the Contractor fails to deliver within 30 days, the
Railways serves a notice to the contractor to pay the same within 90 days with the Penal
Interest @ 15 % per annum.

D. If failed to submit within 90 days, the consequences are 1. Forfeit of EMD 2. Forfeit of other
dues 3. Debar the Contractor from participating in re-tender of that work.
 Answer - 17
D. If failed to submit within 90 days, the
consequences are 1. Forfeit of EMD 2. Forfeit of
other dues 3. Debar the Contractor from
participating in re-tender of that work. (Correct)

Explanation: Next Slide

 Explanation - 17
1.10 % of the Agreement Value. The correct one is 5 %. (Authority: RB letter
dated 24.05.2024)

2. B. PG should be submitted in 4 equal parts i.e., each 2.5 % of the Contract

value. The correct one is 1.25 %

3. C. Due period is 30 days from the LOA. If the Contractor fails to deliver
within 30 days, the Railways serves a notice to the contractor to pay the
same within 90 days with the Penal Interest @ 15 % per annum. The
Correct one is within 60 days
 Question - 18
Services: PG – Variations. Which of the following statements is Incorrect ?

A. No change in the value of PG - up to 25% plus of the Agreement value.

B. No change in the value of PG - up to 25% minus of the Agreement value.

C. Beyond 25% of the Agreement value – Additional PG – 10% of the excess

value over the Original Contract value in 4 equal parts.

D. If the Contract value is decreased by more than 25% of the Agreement value
– PG amounting to 5% of the decrease in the value – Returned to the
Contractor.
 Answer - 18
C. Beyond 25% of the Agreement value – Additional
PG – 10% of the excess value over the Original
Contract value in 4 equal parts. ( Incorrect )

The Correct one is 5% (Authority: RB letter dated

24.05.2024)
 Question - 19
Services: Penalties – Forfeit of PG. Which of the following statement is
Incorrect ?

A. Penalty exceeds 50% of the maximum – 25 % of PG is forfeited

B. Penalty reaches the maximum i.e, 100% – 50 % of PG is forfeited

C. The PG shall be encashed after the completion of the Contract period only
(Not immediately on the date of forfeit of PG)

D. The object of submission of PG in 4 equal parts is to make enable the

encashment of partial PG.
 Answer - 19
B. Penalty reaches the maximum
i.e, 100% – 50 % of PG is forfeited.

The Correct one is Penalty reaches

the maximum is 75%
 Question - 20
Services & Risk and Cost: Which of the following statements is Incorrect ?

A. PG shall be forfeited, whenever the Contractor abandons the Work.

B. Forfeited PG encashed immediately if the Contractor abandons the Work

C. Balance work shall be got done independently without the risk & cost of the
failed contractor

D. The Failed contractor is debarred for a period of 1 year from the date of such
abandonment from participating the Bid.
 Answer - 20
D. The Failed contractor is debarred for a
period of 1 year from the date of such
abandonment from participating the Bid.

The correct one is 2 Years

 Question - 21
Services: Force Majeure – Which of the following statements is Incorrect ?

A. 7 days notice period (from the occurrence of event) by the Contractor only

B. 120 days – a period exceeding such events – can terminate the Contract by either party (i.e.,
Railways & Contractor

C. Definition: "unforeseeable circumstances that prevent someone from fulfilling a contract".

That is an unforeseeable course of events excusing from the fulfillment of the contract by
the contractor/supplier.

D. The so-called circumstances are acts of God such as Wars, revolutions, hostility, acts of
public enemy, civil commotion, sabotage, fires, floods, explosions, epidemics, quarantine
restrictions, strikes, lockouts and freight embargoes etc.
 Answer - 21
A. 7 days notice period (from the occurrence of event) by the
Contractor only (Incorrect)

The Correct one is either of the parties i.e., Contractor or

Railways

Next slide – Force Majeure – Comparison of Services, Stores &

Works
 Explanation - 21
Comparison – Force Majeure
Notice period Terminate the
contract from the
occurrence of event
Services 7 days 120 days

Stores 14 days 90 days

Works 30 days 120 days

 Question - 22
Services Contracts: Maximum Penalty is ______ of the Contract
price

A. 5 %

B. 10 %

C. 20 %

D. None of these
Answer - 22

B. 10 %
 Question - 23
Services: Extension of the Contract – Which of the following statements is
Incorrect ?

A. Not less than one month.

B. If delay is due to Contractor, damages should be levied at the rate of 0.10 %

of the Contract value for each week or part of the week

C. Maximum damages should not exceed 10% of the Contract value.

D. Resorted to the Extension, If the New Contract has not been finalized.
 Answer - 23
C. Maximum damages should not
exceed 10% of the Contract value
– Incorrect

The Correct answer is 5 %

 Question - 24
Services: Variation of individual items beyond 150 % - Which of the following
statements is incorrect ?

A. Paid at a rate of 94% of the Agreement rate.

B. Finance concurrence is required

C. Approval of SAG Officer

D. Permitted under exceptional unavoidable to operate the fresh tenders only

 Answer - 24
A. Paid at a rate of 94% of the Agreement
rate- Incorrect

The Correct answer is 96%

Next slide – Table of Variations

 Explanation - 24
Items Variation Rate Concurrence Approval
Up to
Individual 125% Same No Contract
signing
Individual 125% to 98% Yes SAG
140%
Individual 140% to 96% Yes SAG
150%
Individual Above 150% 96% Yes SAG
Overall Agmt Above 150% Same Yes (PFA or GM With
PFA/C) Negotiations
 Question - 25
Services: Minor value items & Variations – Which of the following statements is
Incorrect ?

A. Minor value item defined as an item whose Agreement value is less than 1%
of the total Agreement Value.

B. Permitted up to 100%

C. Rate is Same as per Agreement

D. Finance Concurrence required & approval of Contract signing authority

 Answer - 25
D. Finance Concurrence required & approval
of Contract signing authority – Incorrect

The correct answer is Finance Concurrence

is not required. But approval of Contract
signing authority is required.
 Question - 26
Service Contracts: Accepting authority for Service Tenders valuing
between Rs. 100 Crores to 500 Crores is _________

A. SAG Officer

B. PHOD/CHOD

C. AGM

D. GM
 Answer - 26

B. PHOD / CHOD

Next slide – Powers

 Explanation - 26
Monetary values Divisions Zonal
Up to Rs.50 L SG/JAG/SS (Independent)
Up to Rs. 4 Crore SG/JAG
Rs.4 Crores to Rs. 20 Crore ADRM SAG
Rs.20 Crores to Rs.100 Crore DRM PHOD/CHOD
Rs.100 Crore to Rs.500 Crore PHOD/CHOD
Above Rs.500 Crore GM
 Question - 27
Fixed component is _____ in all Service Contracts

A. 10%

B. 15%

C. 20%

D. 25%
Answer - 27

B. 15%
 Question - 28
Production of vouchers – Applicable for Service Contracts valuing _____ and
above (similar to Book examination clause in Stores Contracts)

A. Rs. 50 Lakhs

B. Rs. 1 Crore

C. Rs. 2 Crore

D. Rs. 5 Crore
 Answer - 28
C. Rs. 2 Crore

✔ On demand, the Contractor has to furnish quotation,

invoice, cost of other accounts, book of accounts, voucher,
receipt, letter, memorandum etc

✔ To verify the cost of execution of the work under Service

Contracts
 Question - 29
PVC – Price Variation Clause in Services. Which of the following statements is
incorrect ?

A. Applicable for Tenders whose value exceeds Rs. 50 Lakhs

B. Settled every Quarter

C. Base month – Month of the opening bids (incl: Extension if any)

D. Exclusions from PVC are 1. Materials supplied by Railways either free of

cost or at fixed cost 2. Payments to Consultants 3. Fixed component i.e.,
15%
 Answer - 29
A. Applicable for Tenders whose value
exceeds Rs. 50 Lakhs - Incorrect

The correct answer is the Contracts period

exceeds 18 months & irrespective of the
value of Tenders
 Question - 30
Services: Employing more than ____, license from the Assistant
Labour Commissioner is required.

A. 10 Workers

B. 20 Workers

C. 50 Workers

D. None of these
 Answer - 30
B. 20 Workers

(Provisions of Contract Labour

(Regulation & abolition) Act 1970)
 Question - 31
Wages to be paid to the workers before the expiry of ______ of the last day of
wage period, if employed less than 1000 workers (Services)

A. 3 days

B. 5 days

C. 7 days

D. 10 days
 Answer - 31
C. 7 days

✔ If more than 1000 workers – 10 days

✔ This rule applies to the staff working in

Railway Workshops & Production units.
 Question - 32
Services – Labour law awareness. Which of the following statements is
Incorrect ?

A. Canteen – More than 500 workers

B. First Aid box – for Every 150 Contract labour or part thereof

C. Weekly rest to all the workers on a staggered basis

D. Publish a comprehensive booklet about the updated labour legislations &

rules in vernacular language & handover to each worker
 Answer -32
A. Canteen – More than 500
workers - Incorrect

The Correct answer is more than

100 workers
 Question - 33
Services – Decrease in variations: The allowed Rates for A. Up to 75% B. 75% to
50% & C. 50% & below ____, ___ & _____ respectively

A. Same rate, 98 % of the Rate & 96% of the Rate

B. Same rate, 98% of the Rate & 98% of the Rate

C. 98% of Rate, 96% of the Rate & 96% of the Rate

D. None of these
 Answer - 33
D. None of these

There is no decrease in the Rate for

all levels of decreasing the
variations
 Question - 34
Services – Variations : For Tenders accepted by GM, the variations up to ____
of the Original Agreement value may be accepted by GM

A. 110 %

B. 125 %

C. 150 %

D. None of these
Answer - 34

B. 125 %
 Question - 35
Services – PG – Performance Guarantee: Which one of the following statements is Incorrect ?

A. Submission of PG – Between the LOA & Signing of the Agreement

B. PG validity – up to the Completion period + Maintenance period, if any + 30 days

C. PG release: Issue of “Completion certificate” by the Railway authorities & Passing of Final
bill passed based on the “No Claims Certificate” from the Contractor

D. In case of warranty/maintenance clause, 25% of the PG would be retained till the same is
over
 Answer - 35
B. PG validity – up to the Completion
period + Maintenance period, if any +
30 days – Incorrect

The Correct answer is 60 days

Nageswara Rao M

9492432160