and Medium Enterprises of Govt.

of India, MSEs must be registered with any of the following in

order to avail the benefits/preference available vide Public Procurement Policy MSEs Order, 2012.
i. District Industries Centers (DIC)
ii. Khadi and Village Industries Commission (KVIC)
iii. Khadi and Village Industries Board
iv. Coir Board
v. National Small Industries Corporation (NSIC)
vi. Directorate of Handicraft and Handloom
vii. Any other body specified by Ministry of MSME

1.9.2 MSEs participating in the tender must submit on date valid certificate of registration with any one of
the above agencies indicating the details of the particular tendered item along with their bid. The
certificate should be duly notarized.
1.9.3 MSME Registered vendors are required to declare their UAM number in the tender in order
to enable them avail benefits as per Public Procurement Policy.
1.9.4 The registration certificate issued from any one of the above agencies must be valid as on close
date of the tender. The successful bidder should ensure that the same is valid till the end of the
contract period.
1.9.5 The MSEs who have applied for registration or renewal of registration with any of the above
agencies/bodies, but have not obtained the valid certificate as on close date of the tender, are not
eligible for exemption/preference.
1.9.6 The MSEs registered with above mentioned agencies/bodies are exempted from payment of
Tender Fee and Earnest Money Deposit (EMD).
1.9.7 Purchase Preference – Subject to meeting terms and conditions stated in the tender document
including but not limiting to prequalification criteria, MSEs registered with above mentioned
agencies/bodies for the tendered item shall be allowed Purchase Preference as under:
1.9.7.1 In all scenarios detailed below, in case two or more MSE bidders have quoted the same price, then
for price matching, SC/ST owned MSE bidder shall be given the preference.

I. Single item tender (shall not be split) or Multiple items tender (which cannot be split as
per tender conditions): In case the L1 price is that of a non MSE bidder, then the MSE bidder
(whose price is nearest to L1 price) shall be allowed to supply total tendered value provided its
price is within the price band of L1 price +15 per cent and it matches the L1 price. In case the
MSE bidder (whose price is nearest to L1 price) refuses to match the L1 price, then the next
MSE bidder (whose price is 2nd nearest to L1 price and is within a price band of L1 price
+15%) shall be allowed to supply total tendered value, provided it matches the L1 price and so
on. If no MSE bidder whose price is within a price band of L1 price + 15% accept to match the
price of the L1 bidder then the Purchase Order shall be placed on the L1 bidder.

II. Multiple items tender (tenders which can be split):

a. MSE bidder(s) is/are L1 for item(s) and the total evaluated price of such items >=25%
of the total tendered value: Purchase Preference shall not be applicable for the balance
items.
b. In other cases, items where the L1 price is that of non MSE bidder(s) and price of MSE
bidder(s) is within a price band of L1 price +15%, “such” items will be offered to MSE
bidder(s) (whose price is nearest to L1 price) for price matching as detailed below. On
price matching Purchase Order for “such” items shall be placed on the concerned MSE
bidder(s):

i. Sum Total of the total evaluated L1 price of “such” items and total evaluated L1
price of items where the L1 price is that of MSE bidder(s), is less than 25% of
the total tendered value: All “such” items will be offered for price matching. In case
the MSE bidder (whose price is nearest to L1 price) refuses to match the L1 price, the
item will be ordered on the L1 bidder.

PLCGD/Materials/19/04 Page 046

 ii. Sum Total of the total evaluated L1 price of “such” items and total evaluated L1
price of items where the L1 price is that of MSE bidder(s) is>=25% of the total
tendered value: “Such” items will be offered for price matching in such a way that
the Sum Total of the total evaluated L1 price of “such” items and total evaluated L1
price of items where the L1 price is that of MSE bidder(s) is at least 25% of the total
tendered value. The Items to be offered to MSE bidder(s) will be selected on the basis
of the % difference between the L1 price and MSE bidder price (whose price is
nearest to L1 price) in ascending order. During this exercise in case the MSE bidder
(whose price is nearest to L1 price) refuses to match the L1 price, the item will be
ordered on the L1 bidder and will not be replaced by new item for price matching even
though the above mentioned 25% of the total tendered value is not achieved.

For example:
There are 10 line items in a tender.
(A) In 3 line items the L1 price is that of MSE bidder(s) but total evaluated L1 price of
these items is less than 25%
(B) In 4 line items the L1 price is that of non MSE bidder(s) and price of MSE bidder(s) is
within a price band of L1 price + 15%. These 4 line items will be arranged in ascending
order as explained above in b)ii). Suppose the total evaluated L1 price of (A) (3 line
items where MSE is L1 bidder) along with first 2 line items of (B) adds up to 25% or
more of the total tendered value, then first 2 line items of (B) only will offered for price
matching.

Note:
a)Total Tendered value means total lowest evaluated price for the entire tender.
b)Price means Evaluated Price.
c) A line item of the tender shall not be further split in multiple items tender.
d)Negotiations shall not be conducted with bidders as a matter of routine. However, IOCL
reserves the right to conduct Negotiations with the L1 bidder. In such case the eligible
MSE bidder will have to match the Negotiated L1 price. The price band of L1 price + 15%
shall be based on pre-negotiated L1 price but all other criteria defined above shall be
based on Negotiated L1 price.

1.9.8 Above mentioned target of annual procurement from micro and small enterprises includes
procurement from micro and small enterprises owned by Scheduled Caste & Scheduled Tribe
entrepreneurs and owned by women entrepreneurs . In the event of failure of such MSEs to
participate in the tender process or meet the tender requirements and L1 price, sub-target so
earmarked shall be met from other MSEs.
1.9.9 To qualify for entitlement as SC/ST owned MSE, the SC/ST certificate issued by District Authority
must be submitted by the bidder in addition to certificate of registration with any one of the
agencies mentioned in Clause 1.4.1 above. The bidder shall be responsible to furnish necessary
documentary evidence for enabling IOCL to ascertain that the MSE is owned by SC/ST. MSE
owned by SC/ST is defined as:
a) In case of proprietary MSE, proprietor(s) shall be SC/ST
b) In case of partnership MSE, the SC/ST partners shall be holding at least 51% shares in the
enterprise.
c) In case of Private Limited Companies, at least 51% share shall be held by SC/ST promoters.

1.10.0 Transit Insurance – Bidders to note that the transit insurance will be arranged by the IOCL,
bidders need not quote for the same.
1.11.0 BOQ Chart - The evaluation of tender (price) shall be carried out outside the e-tender system. No
cognizance shall be given to the total landed price indicated / BOQ chart generated by the system.
1.12.0 Delivery Period:
st
1.12.1 For foreign Bidder - Total quantity ordered in 1 lot to be delivered within 16 weeks from PO
date.

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