RULES FOR ENTERING INTO SUPPLY CONTRACTS

RULES FOR ENTERING INTO  SUPPLY CONTRACTS

Government of India

Ministry of Railways

(Railway Board)

o.85/RS(G)/779/31 Dated: 02/01/2008

The General Manager (Stores),

Southern Railway, Chennai.

Sub : Revision/updating of Compendium "Rules for entering into supply contracts".

Ministry of Railways have decided to constitute a Committee of the officers mentioned below, which will review the compendium "Rules for entering into supply contracts April, 2000"

compiled by Southern Railway and revise/update the same incorporating all policy instructions /orders regarding award of tenders, including invitation of tenders, formation of Tender

Committee, negotiation etc. to make it more useful for the officers/staff dealing with the purchase of Railway Stores:-

a) COS, Southem Railway : Chairman.

b) FA & CAO(WST) / Southern Railway : Member

c) CMM/Shell/ICF : Member

d) One Dy. CMM, each to assist them.

Secretarial assistance in this regard will be provided by Southern Railway. EDRS(P) may be contacted by the committee whenever any information concerning imports is required by them.

Ministry of Railways desires that the Committee should complete the revision/ updating of the said compendium in 3 months time. A sample bidding document for import as well as loc al purchase should also be given in the compendium for guidance.

This issues with the concurrence of Finance Directorate of Ministry of Railways.

Sd/-

Trilok Kothari)

DRS(IC)/Rly Bd

CONTENTS

Chapters Title Pg. No.

PART I PURCHASE - AN OVER VIEW

P1CI Purchase-an Over View 1

P1C2 Canons of Financial Propriety & Legal Aspects of Purchasing & Ethics in Buying 3

P1C3 Material Management - Outline 7

P1C4 Registration of Firm 9

PART II TENDER SYSTEM

P2C1 Calling of Tenders 15

P2C2 Opening of Tenders 28

P2C3 Constitution of Tender Committees 33

P2C4 Consideration of Tenders 38

P2C5 Purchase from SSI, KVIC & Women's Development Corporations 57

P2C6 E-Procurement 59

PART III CONCLUSION OF CONTRACT

P3C1 Acceptance of Tenders 61

P3C2 Payment Terms 64

P3C3 Variation Clauses 68

P3C4 Price Preference Acceptance of Price Preference 76

 PART IV IMPORTS

P4 Imports 79

PART V

ENFORCEMENT OF CONDITIONS AGAINST DEFAULTING SUPPLIERS

P5C1 Extension of Delivery Period 89

P5C2 Levy of Liquidated Damages 93

P5C3 Risk Purchase 97

P5C4 Recovery of RP Loss, GD, LD, Etc 101

 PART VI MISCELLANEOUS

P6C1 EMD. SD, Guarantee Bond 105

P6C2 Firm Price Contracts- Effect of Increase in Prices 112

P6C3 H/O of Rly Property to Outsiders 113

P6C4 Indigeneous Development of Imported items 116

P6C5 Local Purchase 117

P6C6 Procurement of Stores - Provisioning 120

P6C7 Procurement of Proprietory items 123

P6C8 Dealing with the Rly. Board Contracts 126

P6C9 Procurement from approved sources & Quality Supplies 135

Source:Indian Railways