B4.7 Calling of Tenders
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1 B4.7 Calling of Tenders B4.7.1 Responsibility Centre: - Corporate Contracts for Corporate Packages. - Regional Contracts or any other Dept. as may be authorized by ED of the Region, for Site Packages. (For the purpose of general reference, the above Depts have been hereinafter referred to as Contracts) B4.7.2 On finalisation of Bidding Documents and receipt of NIT cost estimate, Contracts Dept. will process the proposal for obtaining approval of Competent Authority as per DOP for calling of tenders. The proposal shall contain the mode of tendering, bidding program, text of NIT/ IFB, amount of EMD/ bid security and cost of documents, etc. The guidelines on mode of tendering and the bidding program are given in subsequent paras. B The amount of EMD, to be indicated in the NIT/ IFB also, shall be equal to 2% of the NIT cost estimate, rounded off to nearest thousands. However, for civil works, the same shall be subject to a limit of Rs 100,000/-. For packages under domestic funding, the bidders shall be required to submit the EMD/ Bid security/ Bid Guarantee in a separate sealed envelope (duly super-scribed) along with the bid. This shall also be applicable for packages funded by multi-lateral funding agencies if so provided in their guidelines or standard bidding documents. B4.7.3 The cost of the bidding documents shall be reasonable and generally reflect the cost of their printing and delivery to prospective bidders and shall not be so Works & Procurement Policy and Procedure Section-B Page 46 of 140
2 high as to discourage qualified bidders. The same shall be finalised by P&S Group of Contracts dept at Corporate Centre with the approval of ED (CS), through Finance. The cost of documents so finalized shall be updated every five (5) years. The cost of documents, for the first one year from the date of implementation of this policy document, shall be as follows: a) Packages valuing upto Rs. 25 lacs Rs. 500 / US$ 10* b) Packages valuing more than Rs. 25 lacs but upto Rs.50 lacs Rs. 750/ US$ 15* c) Packages valuing more than Rs. 50 lacs but upto Rs.1 Crore Rs. 1000/ US$ 20* d) Packages valuing more than Rs.1 Crore but upto Rs.2 Crores Rs.2000/ US$ 40* e) Packages valuing more than Rs.2 crores but upto Rs.5 crores Rs.5000/ US$ 100* f) Packages valuing more than Rs. 5 crores - Rs.10000/ US$200* * In case of International/ Global Competitive Bidding Note: In case two or more packages are covered in the same Bidding Documents, the cumulative value of all such packages shall be taken as the package value for the above purpose. B4.7.4 Modes of tendering/ bidding : The mode of tendering is dependent on how the project is funded. Accordingly, the mode of tendering is decided by Contracts Dept. in consultation with the Indenting dept. and Finance. The different modes of tendering, to be adopted under various circumstances, are discussed below: (i) International Competitive Bidding (ICB): Works & Procurement Policy and Procedure Section-B Page 47 of 140
3 It is the most preferred mode of procurement by multilateral financing agencies like World Bank(WB), Asian Development Bank (ADB), etc. As such this mode of tendering will be followed for all project procurements funded by these agencies as well as by such other funding agencies/ countries/ institutions etc. with whom the funding arrangement stipulates ICB to be adopted. The guidelines prescribed by funding agencies shall be followed for ICB. (ii) Global Competitive Bidding (GCB) If the equipments/ goods/ services to be procured, under domestic funding, are not readily available domestically or for any other justified reason, bids on global basis may be invited for packages other than those funded by multilateral financing agencies. Bidders from all the countries in the world, barring those with whom business is banned or against whom sanction is imposed by Govt. of India or such is the position by virtue of GOI s Policy and Procedure, shall be eligible bidders for GCB. GCB shall be resorted to only with the approval of CMD for which the proposal shall be initiated by Contracts based on input from indenting Dept., in consultation with Finance. (iii) Domestic Competitive Bidding (DCB) The normal mode of public procurement of all packages, covering equipments/ goods/ works which are domestically available and are funded through POWERGRID s own resources or domestic resources, will be DCB. Bidders from within India (including foreign firms/ MNCs registered in India), barring those with whom business is banned by POWERGRID or such is the position by virtue of POWERGRID s Policy and Procedure, shall be eligible bidders for DCB. Works & Procurement Policy and Procedure Section-B Page 48 of 140
4 (iv) Mode of Bidding other than (i), (ii) & (iii) above For Project procurements funded by agencies/ countries/ institutions etc. with whom the funding arrangement stipulates mode of bidding other than (i), (ii) & (iii) above, the same shall be adopted and guidelines prescribed by funding agencies shall be followed. B4.7.5 Under the modes of tendering/ bidding described above, tenders/ bids shall be invited/ called, with approval of Competent Authority as per DOP, under one of the following procedures: (i) Open Tender Invitation: (a) Under this procedure of tender invitation, which shall normally be followed for project procurements, the invitation for bids/ tenders is extended to prospective bidders by advertisement through newspapers. Keeping in view the high cost of advertisement, this shall generally be adopted only for packages having estimated value more than Rs.50 lacs. However, there shall be no objection to invite tenders through press advertisement for packages having estimated cost less than Rs.50 lacs if overall economy in advertisement is achieved by including more than one packages, with cumulative estimated value exceeding Rs. 75 Lakhs, in the same NIT. In addition, a copy of NIT/IFB is mailed (through speed post for destinations within India and by Air Mail for destinations abroad) Works & Procurement Policy and Procedure Section-B Page 49 of 140
5 directly for wide publicity to the known prospective sources of procurement, trade/ manufacturers/ service providers/ other organizations, foreign embassies (in case of ICB and GCB), updated list of which (to be approved at the level of DGM) shall be maintained with P&S Group in Corporate Contracts and the Contracts Dept. of Regional Office. The text of NIT shall be concurrently uploaded on POWERGRID s website, and the address of website shall be given in the NIT published in Newspapers alongwith information in regard to the same. Tenders/bids invited/ called from all the parties pre-qualified or empanelled/ enlisted through newspaper advertisement with the approval of Competent Authority, shall be deemed as open tender for all purposes. (b) Normally, a period of 45 days (for Corporate packages) and days (for Site Packages) shall be kept between the commencement and close of sale of bidding documents. In case of packages funded by external agencies, this period shall be as per guidelines of respective funding agencies. Bids shall be opened after approximately seven days of close of sale of Bidding Documents. In exceptional cases, the time period may however be reduced with the approval of ED(CS) for Corporate Packages and AGM/ GM in the Region for site packages. (c) IFB/NIT shall be published in newspapers as per following guidelines: Works & Procurement Policy and Procedure Section-B Page 50 of 140
6 For Corporate packages: at least in two leading newspapers of all-india repute and one widely circulated regional newspaper of the area where the work is to be executed. For Site packages: generally in one leading newspaper of all-india repute and two widely circulated regional newspaper (one of which should preferably be vernacular) of the area where the work is to be executed. Since the exact number of Regional newspaper for the purpose of NIT publication may vary in each case, the same may be decided by the concerned Region. Further, for smaller value packages, it may not be essential to include national newspaper where the cost of advertisement is generally very high. A guideline in this regard shall be separately finalized by each Region with the approval of ED(Region), for which necessary action shall be taken by Regional PR in consultation with Regional CS.. In case of packages funded by World Bank/ADB or other agencies, the IFB/NIT shall be published in compliance with their guidelines (updated guidelines shall be advised by P&S Group of Corporate Contracts). d) The list of newspapers for above purpose, shall be decided by Corporate Communications for Corporate Packages and Regional PR for site packages with the approval of ED(Corp. Commn.) and ED (Region), respectively. (e) Based on the copy of approved note for calling of tenders, which Contracts shall forward to Corp Commn, a proposal shall be put up by Corp Commn/ Regional PR, recommending newspapers in which IFB/NIT is proposed to be published. The proposal shall be Works & Procurement Policy and Procedure Section-B Page 51 of 140
7 approved by Competent Authority in Contracts as per DOP after concurrence of Finance. (f) Corp Commn./Site PR shall also ensure that IFB/NIT is released by rotation in different newspapers published by different newspaper groups maintaining a healthy balance. (g) Concerned Contracts and the Corp Commn/ Site PR executive shall ensure that the text of NIT/IFB is properly scrutinized for its overall presentation, incorporation of essential details and brevity to the extent possible, to keep the advertising cost to a minimum. (h) Timely publication of NIT/IFB, in approved news papers, shall be ensured by Corp Commn/Site PR, who shall promptly furnish art pulls in sufficient numbers, as may be required, to Contracts Dept.. Further, a full page of newspapers, wherein NIT/IFB has been published, shall be kept in their records by Corp. Commn. and a copy of the same shall be forwarded to Contracts as a proof of publication thereof. (ii) Limited Tender Invitation (LTI): (a) Under this procedure, direct invitation to bid for a particular package without open advertisement is extended to certain firms/ parties whose names shall be selected from the data base of bidders who had in past participated in bidding or who had been prequalified/ empanelled for similar package(s). In case data base of prospective bidders for a particular work is not available with POWERGRID, name of the parties may be obtained from other organization with establishment in the vicinity. As a last resort, a Works & Procurement Policy and Procedure Section-B Page 52 of 140
8 brief advertisement informing only the salient details of the tenders may be given in local newspaper, with the approval of the authority not less than DGM. (b) LTI shall normally be followed where (i) the estimated cost of the package is small (limit as defined in DOP) (ii) there are only limited number of contractors/ suppliers for the procurement in question, or (iii) other reasons justifying departure from open tendering procedures including expediency. (c) In all cases where LTI is resorted to, bids shall be invited from three or more firms. Depending on the approved NIT cost estimate of the package, it should be ensured that the list of firms for LTI is broad enough to assure competitive prices. Higher the NIT Cost Estimate, more should be the number of firms. Further, it should also be ensured that sufficient number of firms (three or more) of comparable standing are included in the list. (d) The list of firms for LTI shall be approved as per DOP. The note in this regard shall be put up by Contracts, through indenting Dept. and Finance, taking into account input, if any, from the Indenting Dept.. (e) Normally, the bidding documents, in case of LTI, shall be issued to the approved firms directly along with the NIT/IFB free of cost. However, when parties are more ( say more than 10), there shall not be objection to send only the NIT/ IFB to the approved firms and inviting them to purchase the bidding documents, if interested. In such a case, documents can be issued to interested bidders against a token cost of Rs.200. A period of 21 days or more (for Corporate Works & Procurement Policy and Procedure Section-B Page 53 of 140
9 packages) and 15 days or more (for Site Packages) from the date of issuance of NIT/IFB/Bidding Documents shall be allowed for submission of bids and opened on the same date. The time period may, however, be reduced with the approval of ED(CS) for corporate packages and GM/ AGM in the Region. (iii) Single Tender Invitation: (a) Under this procedure, procurement from a single source is undertaken without competition by extending the tender invitation to a single firm. (b) Procurement through single tender invitation may be appropriate only under the following circumstances: (ba) Requirement of compatibility with the existing equipment may justify additional purchases from the original supplier. For such purchases to be justified, there should not be a proposal to declare the original equipment out of use in the near future. A certificate to the above effect will have to be furnished by the indentor not below the level of DGM, prior to procurement. (bb) In case of source standardization, which will normally be for limited periods not exceeding three years and will require approval by ED based on recommendations of a Committee consisting of representatives of Indenting, Contract Services/Materials Management Services and Finance Departments. The proposal for source standardization and nomination of the committee shall be initiated by the Works & Procurement Policy and Procedure Section-B Page 54 of 140
10 Indenting dept for approval of ED(CS)/MM/Region, as the case may be, through CS/MM and associated Finance. The level of Committee members shall be not less than Chief Manager in Corporate Centre and Manager in the Region. (bc) The required item/equipment is proprietary and can be obtained from only one source. A certificate to this effect will have to be furnished by the indenter not below the level as per DOP. (bd) The goods/works are required to be procured on grounds of urgency. An urgency certificate supported by adequate reasons and justifications thereto shall be furnished by indentor, duly approved by the Competent Authority as per DOP (be) The goods/works are required to be procured on single tender basis, on grounds other than those stated above. This shall be resorted to in exceptional circumstances based on specific technical considerations, in which case, the justifications thereof shall have to be furnished by indenting Dept. and approved as per DOP. (c) The name of the party for single tender invitation in case (bd) and (be) above, shall be approved by the authority competent to approve the award of work of value equal to the NIT cost estimate of the package. The note in this regard shall be put up by Contracts through indenting Dept. and Finance, taking into account input, if any, from the Indenting Dept.. Works & Procurement Policy and Procedure Section-B Page 55 of 140
11 (d) The bidding documents, in case of single tender invitation, shall be issued to the approved firm directly along with the NIT/IFB without any cost of documents. A period of 10 days or more (for Corporate packages) and 5 days or more (for Site Packages), from the date of receipt of NIT/IFB/Bidding Documents, shall be allowed for submission of bids which shall be opened on the same day. The time period may, however, be reduced with the approval of ED(CS) for Corporate packages and GM/ AGM in the Region. (e) Procurements under a new contract based on / in line with the prices of any previously awarded contracts (other than repeat orders), in one or more of the above situation or any other exigent situation encountered in the Project, shall also be treated as a single tender procurement. (iv) Shopping (sundry procurement): (a) Under this procedure, the procurement is made either by a single officer or a committee authorised to finalise the procurement, after surveying the market. (b) Procurement by shopping shall be resorted to in cases of urgent procurement of items of which POWERGRID has no previous knowledge. It may also be adopted for procurement of small value items, office consumables, off-the shelf branded items/ consumer durables, with differentiation in features and quality, but serving the same purpose. Procurement as per DOP may be made by a single officer or a committee authorised for the purpose. Works & Procurement Policy and Procedure Section-B Page 56 of 140
12 (c) The procurement shall be commenced after authorization of the same by the Competent Authority as per DOP, for which the note shall be initiated by the Indenting Dept. bringing out reasons for the procurement by shopping. The note upon approval by ED in Corporate Centre/ HOD of Indenting Dept. in Region not below DGM, shall be forwarded in original to Contracts Dept./ Materials Management Dept., who shall put up the note for nomination of the committee/ a single officer authorised to carry out procurement, and approval of Competent Authority as per DOP provisions. (d) As a matter of general guidelines, the procurement by shopping will be made by the authorized officer/ the committee after determining the reasonableness of the price taking into account other considerations viz. quality, after sales services, maintenance requirement etc. Normally, spot quotations, preferably from three or more parties, may be obtained and orders placed after analyzing all relevant aspects. Procurement may be carried out either by making cash payment or by cheque/ draft after issuing a brief letter order. Prior cash advance in such cases may be sanctioned by the authority competent to sanction the procurement by shopping as per DOP. (v) Procurement from single agency as per GoI directives: Procurement of items/ equipment/ services from a Public Sector Undertaking or any other agency/ firm as per documented Government directives/ Policy and Procedure or Policy and Procedure of POWERGRID on single agency basis, will be finalised generally as per the procedure applicable for singe tender invitation. In such cases, the award shall be approved by the authority competent to approve the award of same value against LT, as per DOP. Works & Procurement Policy and Procedure Section-B Page 57 of 140
13 (vi) Running and Rate Contracts : (a) Wherever it is advantageous to have supply of goods/ execution of works at a steady or regular pace over a period of time, running/rate contracts may be entered into, after following the procedure of invitation of tenders either on open or limited tender basis, as discussed above. (b) The Competent Authority, for the purpose of DOP, for approval of award of such rate contracts shall be on the basis of the estimated cost to be incurred under such rate contracts. The extent of expenditure that may be incurred under the rate contract shall also be specified in the rate contract as estimated contract price. B4.7.6 The time schedule, immediately after receipt of approved QR, for activities related to calling of tenders will be as follows: (a) for Corporate Packages: (i) 2 (two) weeks for putting up IFB/NIT note and obtaining approval of Competent Authority for calling of tenders, by CS. (ii) 2(two) weeks, after (i) above, for publication of IFB/ NIT in newspapers, in case of open tender invitation, by Corp. Commn. (iii)additional 2(two) weeks for packages under multilateral funding for release of IFB/NIT though the publication prescribed by them. (b) for site packages: Works & Procurement Policy and Procedure Section-B Page 58 of 140
14 (i) 2 (two) weeks for putting up IFB/NIT note and obtaining approval of Competent Authority for calling of tenders, by CS (ii) 2(two) weeks, after (i) above, publication of IFB/ NIT in newspapers, in case of open tender invitation, by Regional PR. Thus, the entire activity of calling of tenders including issuance of IFB/NIT in newspapers and through publication prescribed by funding agency, wherever required, for main package(s), shall be completed by concerned Depts. within about weeks from the internal zero date, by which time the concurrence of bidding documents from the funding agencies is also expected to have been obtained as discussed in B above. B4.7.7 The Draft NIT/IFB put up to and approved by Competent Authority along with the note for calling of tenders will normally indicate different dates for various activities/ events in the bidding process, considering that the note will be approved within the normal time. However, if the approval takes some more time and minor adjustments to the said dates are required, the same may be made with the approval of DGM. B As described above in para B4.7.2, the proposal for calling of tenders shall be initiated by Contracts Dept. after receipt of approved NIT Cost Estmate. However, in cases where approval of cost estimate is likely to take sometime, Contracts Deptt. shall proceed ahead with the action for calling tenders pending approval of cost estimate. In such a situation, the estimate to be considered for the purpose of deciding the value of EMD/bid security and tender fee shall be intimated to Contrcats Deptt. by Engg./ concerned Indenting Dept., not below the level of DGM, on the basis of FR cost estimate or the proposed cost estimate yet to be approved. However, the bids shall be opened only after the Works & Procurement Policy and Procedure Section-B Page 59 of 140
15 receipt of the approved cost estimate. In case of two-stage bidding, the first stage bid shall also be opened only after the receipt of NIT cost estimate. B4.7.9 At the time of calling of tenders, the provisions/ guidelines under para B5.6.2 to B5.6.5 shall also be taken into account. Works & Procurement Policy and Procedure Section-B Page 60 of 140
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