SECTION 8

RECEIPT, OPENING AND ACCEPTANCE OF TENDERS IN MANUAL/PHYSICAL

FORM
(For E-tendering, Refer Section 29)

8.1 PROCEDURE TO BE ADOPTED

8.1.1 With a view to avoiding the possibility of original Tender Documents being
tampered with, the following procedure shall be adopted in connection with the
receipt and opening of tenders and their acceptance. Detailed instructions
contained in the “Notice Inviting Tender and Instructions to Tenderers” contained
in the Standard RITES’ Tender Document should also be studied carefully.
8.1.2 Receipt of Tenders
All the tenders shall be received in the office indicated in the NIT where Tender
Box shall be kept. The Box shall be locked and sealed so that documents
dropped in the Box cannot be tampered with. If the Tender Documents to be
deposited are bulky and cannot be put in the Tender Box, the NIT should
specifically indicate the name and designation of the official /s who will receive
the Tender Documents in person. The nominated official when receiving the
Tender Document should check if it is in sealed condition and give
acknowledgement of receipt to the Tenderers with date and time of receipt. He
should sign on the top of the envelope with the time and date of receipt. Similarly
in case any tender offers are received by post, the official nominated for receiving
the same should send by post the acknowledgement after checking if the seal of
envelope is intact, indicating the date and time of receipt. He will also record on
the envelope the time and date of receipt and affix his signature thereon. If the
envelop can be accommodated in the Tender Box, he shall drop it in the box. If
the envelope is bulky, he shall keep it in safe custody.
At the time and date indicated in NIT as closing time for receipt of Tenders, the
opening in the Tender Box for dropping of tender will be sealed with paper
bearing the signature of the authorized official along with date and time.
8.2 DELAYED AND LATE TENDERS
Late or delayed tenders are not to be opened or considered at all and the
unopened envelopes should be returned to the tenderer indicating the reasons
for the same.

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8.3 INSTRUCTIONS FOR TENDER OPENING OFFICERS
8.3.1 A Tender Opening Committee consisting of two Regular officers, one from the
SBU concerned (not below the rank of Engineer) and the other from Finance (not
below the rank of Accountant) should be nominated by the Tender Accepting
Authority or the SBU Head (whoever is of the lower rank) for opening the
tenders.
8.3.2 The nominated Tender Opening Officers shall report to the Project Coordinator at
least half an hour before the deadline for receipt of tenders. They should
familiarize themselves especially with the following:–
i) Earnest Money - Amount and Form in which it can be submitted and
Validity Period as given in Section 9 of this Guideline.
ii) Cost of Tender Document and the form in which to be furnished, applicable
in cases where the tender is submitted in the form downloaded from
RITES’ website.
iii) Government policy regarding exemption from payment of Cost of Tender
Document and Earnest Money to a certain class of bidders. (See
Annexure 8.5) and Government policy regarding exemption from payment
of Earnest Money alone and not Cost of Tender Document to a certain
class of bidders (See Annexure 8.5A).
iv) The benefits under Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 are applicable to only Supply and
Service Contracts.
8.3.3 The Tender Opening Officers shall make themselves thoroughly conversant with
the procedure for opening and dealing with the opened tenders. After obtaining
instructions from the Project Coordinator or the officer deputed by him for this
purpose, Tender Opening Officers shall take out the tenders from the Tender
Box. Before opening the Tender Box, the Opening Officers shall verify that the
seal put on the opening in Tender Box and the seal on the lock for the door of the
Tender Box are intact. If not, the fact must be immediately brought to the
personal notice of the Project Coordinator for his instructions.
8.3.4 Tenders shall be taken out from the Tender Box and opened at the time
stipulated thereof in the presence of such of the tenderers who have submitted
tenders or their representative who are present. Tenderers should also be
encouraged to be present at the time of opening of the tenders. The names of
the tenderers and / or their representatives who are present at the time of
opening shall be recorded by the Opening Officers in the register meant for this
purpose and it shall be signed by both of them. While opening the tenders, no
opportunity should be given to any tenderer to repudiate, amend or explain any
rate or condition quoted in the tender.

8.3.5 In the case of Single Packet System where the Technical Bid and the Financial
Bid are to be opened at the same time, the officers opening the tender should first
open Envelope 1 marked (i) `Earnest Money’ (ii) `Cost of Tender Document’ (if
applicable), or `Documents Substantiating Exemption from Payment of Earnest
Money and Cost of Tender Documents’ and if the Earnest Money in terms of the
Form, Amount and Period of Validity is in order, and where the tender has been
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 made out in the form downloaded from RITES website, the cost of Tender
Document has been furnished for correct amount and in one of the stipulated
forms (unless exempted from making such payments as substantiated with
documents), then only should they proceed to open the Technical Bid and
Financial Bid Envelopes. In case the Earnest Money is not found in order, and
where applicable, the Cost of Tender Document has not been furnished correctly
(unless exempted from making such payments), the Technical Bid and Financial
Bid should be returned to the tenderer on the spot if he is present there; otherwise
later by Registered Post Acknowledgement Due. An entry shall be made in the
Tender Opening Register to this effect. The Technical Bids and Financial Bids of
those tenderers whose Earnest Money Deposit is found acceptable, and where
applicable the cost of Tender Documents has been furnished correctly (unless
exempted from making such payments), will then be opened. The rates and
amounts quoted and conditions stipulated by the tenderers, if any, will be read
out.In case Tender Opening Committee has any doubt regarding the authenticity
or acceptability of the instruments of Earnest Money and Cost of Tender
Documents furnished by a bidder, they should open the further packets of such
bidder, putting on record the reasons for such doubt and leave the matter for
deliberation by Tender Committee and final decision of the accepting authority.

8.3.6 In case of Two Packet System, Technical Bids shall be opened first following the
procedure indicated in Para 8.3.5 and after Technical Bid evaluation is
completed, which may take some days, Financial Bid in respect of only those
Tenderers whose technical Bids are found acceptable shall be opened on a date
to be fixed and advised to the Tenderers concerned. In rare cases where
deposition of Earnest Money along with the tender was not insisted upon due to
expected long time in evaluation of Technical Bids, the Financial Bids should be
opened only after getting the Earnest Money unless the tenderer is exempted
from payment of Earnest Money as a matter of Government Policy. Whenever
the Financial Bids are opened, the rates and amounts quoted as well as the
conditions if any, stipulated by the Tenderers will be read out.
8.3.7 In the Two Packet System where only Technical Bid is to be opened first, the
Tender Opening Officers will also sign each and every unopened Financial Bid
envelope and seal them in another outer envelope. The signatures with date of
the Tenderers or their representatives present at the time of opening of Technical
Bid shall also be taken on the outer envelope which should be kept in safe
custody by the Project Coordinator.
8.3.8 In both Single Packet System and Two Packet System, whenever the Technical
Bids and Financial Bids are opened, the following procedure shall be adopted :–
Both the Tender Opening Officers shall sign with date on all the following
pages:–
Technical Bid
i) Tender and Contract Form signed by the tenderer.
ii) Qualification Information filled in and signed by the tenderer.

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 iii) Where Integrity Pact is applicable as per NIT, the Integrity Pact duly
signed and witnessed by the tenderer.
Financial Bid
Schedule of Quantities (BOQ) filled in and signed by the tenderer.
8.3.9 If by any chance there are any pages where any modification has been done by
any tenderer by way of corrections, over writing, omissions, additions or
conditions, such pages should also be signed with date by both the Opening
Officers. While going through the pages of the Tender Document issued by
RITES, the Tender Opening Officers should also check if each page bears the
signature of an official of the office of Tender Inviting Authority.

8.3.10 Officers opening the tenders shall date and initial all corrections, overwritings,
omissions, additions and conditions in both Technical and Financial Bids,
specially in RITES Tender and Contract Form, Qualification Information and
Schedule of Quantities as indicated in Para 8.3.8 and in the other pages referred
to in Para 8.3.9 above. Use of correction fluid in tender documents should not be
allowed. In case use of correction fluid is noticed, such tender will be liable for
rejection.

8.3.11 The officers concerned should mark all corrections, over writings, omissions,
additions and conditions and attest them in red ink. In case there area number of
corrections, over writings, omissions, additions and conditions in any page, each
such correction, over writing, omission, addition and condition should be allotted
an independent number and this numbering should be in serial order. Thus if
there are three corrections in one page, they should be numbered serially as
Correction No.1, No.2 and No.3. Similarly, Overwriting No.1, No.2, No.3 etc.

8.3.12 The total number of such corrections, over writings, omissions, additions and
conditions on each page should be clearly mentioned at the bottom of that page.
The Tender Section will supply a suitable rubber stamp to the Tender Opening
Officers so that they can put the rubber stamp impression in all pages where
corrections etc have been made by the Tenderers and number of corrections etc
filled in the relevant columns along with their initial and date. If in any page there
is no correction etc, even then the rubber stamp impression is to be put and at
bottom of page “Nil” should be written against correction etc.

8.3.13 Any ambiguities in rates quoted by the tenderer, in words or in figures, must be
clearly indicated on each page of the schedule attached to the tender to which it
concerns.

8.3.14 In case where the contractor has quoted rates in rupees and no paisa is
mentioned the word “only” should invariably be added after the words rupees and
the corrections should be initialed and dated with suitable remarks at the end.

8.3.15 Where the contractors have omitted to quote the rates in figures or in words, the
officers opening the tender should record the omissions on each such page of
the Schedule.
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8.3.16 The contractors are required to quote rates in words including paise to avoid
chances of tampering in rates and if the contractor fails to do so, the Tender
Opening Officers should write the rates in words at the time of opening of tenders
under dated initials in addition to recording the omission on the part of tenderer.

8.3.17 The Tender Opening Officers shall scrutinize the tenders to ascertain whether
any of these contain any conditions/stipulations by the tenderer. If there is any
covering letter attached to the tender, the letter shall be initialed and dated by
both the Opening Officers.

8.3.18 In case any tenderer has failed to total the amount of his tender, the fact should
be stated by the Tender Opening Officers in the Schedule of Quantities and in
the Tender Opening Register. If the rate for any item in Schedule of Quantities is
missing, the Opening Officer shall insert a remark to that effect in the relevant
place in Schedule of Quantities and this fact should also be stated in Tender
Opening Register. The remarks shall be initialed and dated by the Tender
Opening Officers.

8.3.19 In the case of Percentage and Lump Sum Tenders, the Percentages and Total
Amount quoted should be read out to the tenderers as far as possible. In the
case of Item Rate Tenders the Rates and the total amounts worked out by
different tenderers may be read out, if requested by the tenderers present.

8.3.20 The Tender Opening Officers will be fully responsible for ensuring that they sign
the tender documents at all the places wherever required as per these
instructions before handing over the tender documents to the designated officer
of the Tender Cell. They will be fully responsible for any consequences arising
out of their failure to sign the tender documents at the places required as per
these instructions.

8.3.21 At the time of opening of tenders, the Tender Opening Officers shall initial and
date in ink on every envelope and also at the following places in every tender in
addition to the places indicated in paras above.

a) On the right hand top corner of the first page of the tender document.
b) General Summary filled in by the tenderer.
c) Writing in different ink, and different hand-writing when compared with the
general writing.
Extensions and totals need not be checked by Opening Officers.

8.3.22 Each of the Tenders received shall be given a serial number. If (say) 6 Tenders
are received, they should be numbered as 1/6, 2/6 etc.

8.3.23 The serial number of the tenders shown on the envelope shall be shown along
side the initials of the Tender Opening Officers on the first page of the tender

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 documents, covering letter and also on the envelope(s) containing the Financial
Bid.

8.3.24 If a blank tender has been received, the words ‘Blank Tender’ shall be written on
the envelop containing tender and the fact shall be noted in the Tender Opening
Register against the name of the tenderer concerned. Similarly, if no tender is
received the words “No tender” shall be written against the name of the person /
firm concerned to whom a tender was issued. Similarly “Late Tender” or
“Delayed Tender” should be written against the name of the concerned Tenderer.

8.3.25 For the purpose of arriving at the number of tenders to be filled in the Tender
Opening Register, a blank tender shall be reckoned as a tender received.

8.3.26 The Tender Opening Officers must fill up all information in Tender Opening
Register in the format given at Annexure 8.6.

8.3.27 The Tender Opening officers have to fill and complete the Proforma of Tender
Opening Register properly and the same has to be got signed by all the
tenderers / their representatives present and has also to be signed by the Tender
Opening Officers before handing over to the Project Coordinator or his
representative.

8.3.28 If for any exceptional reason a tender box is not opened at the appointed time for
opening of tenders, the fact shall be brought out in Tender Opening Register
giving reasons there for by the tender Opening Officers. If for any exceptional
reason there is time to clear the box but not enough time to open the tenders, the
fact with reasons shall be brought out properly in the Tender Opening Register.
The key shall also be handed over to the concerned Project Coordinator along
with the unopened Packets of Tender Documents for safe custody and for
opening of the Packets on a subsequent date after due advice to the Tenderers.

8.3.29 Late or Delayed tenders shall be returned unopened to the tenderers and Tender
Opening officers shall mention this fact in the Tender Opening Register and
should be discussed in the briefing note.
8.3.30 On completion of work of opening of tenders the tender Opening Officers will
hand over the tender documents along with EMD received and Cost of Tender
Document if any furnished by any Bidder who has submitted the Bid in the form
downloaded from RITES website, to the officer deputed by the Project
Coordinator concerned. Both the opening officers and the deputed officer will
date and sign in the Tender Opening Register as token of proper Handing over /
Taking over of the tender documents. Deputed Tender receiving officer will bring
to the notice of the Tender Opening Officers any non-compliance of the above
instructions observed by him while taking over the tender documents.
8.4 EVALUATION OF TENDERS
Following steps shall be required in evaluation of tenders:-
1. Preparation of Briefing Note on Technical Bids by Tender Briefing
Committee and its scrutiny by Project Co-ordinator as per procedure
explained in para 8.5.
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 2. Evaluation of Technical Bids as per procedure explained in para 8.6.
3. Verification of authenticity of credentials relating to Work Experience and
any other documents as per tender provisions submitted by the bidders
whose Technical Bids are otherwise found acceptable. This is a parallel
activity to be done simultaneously with the steps to be taken as per Sl.
Nos. 4, 5 & 6 of this para. The project Coordinator concerned, however,
should ensure that before submission of recommendations by the Tender
Committee on financial bid to the Tender Accepting Authority, verification
of authenticity of Credentials/documents of 'L-1' bidder is completed. The
project Coordinator may make use of fax/email or depute an officer not
below the rank of a Manager for verification of the credentials discreetly
and expeditiously so that tenders are decided within their validity.
4. Opening of Financial Bids as per procedure explained in para 8.7.
5. Preparation of Briefing Note on Financial Bids by Tender Briefing
Committee and its scrutiny by the Project Co-ordinator as per procedure
explained in para 8.8.
6. Evaluation of Financial Bids as per procedure explained in para 8.9.
7. No Post-tender modification by any tenderer shall be taken into
consideration. As regards suo-moto rebate / discount offered by any
tenderer after opening of tenders, provision in Para 8.9.1 and 8.10.9 will
be applicable.
8. In case any of the self attested documents turns out to be misleading or
false, the EMD of the concerned tenderer will be forfeited and Business
dealings banned after following the procedure laid down in Annexure VIII
of Section I of RITES Standard Tender & Contract document. Such tender
will not be treated as a valid tender for the purpose of determining the
lowest tenderer.
8.5 PREPARATION AND SCRUTINY OF BRIEFING NOTE ON TECHNICAL BID
(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)
8.5.1 A Briefing Committee consisting of two members - one from the concerned SBU
(An officer not below the rank of regular Engineer, preferably AM) and one from
Finance (not below the rank of regular Junior Manager) shall be nominated by
the concerned SBU Head or his representative (not below the level of Project
Coordinator) in consultation with Finance. The committee will take over the
tender opening register and tenders received and go through the same. The
Briefing Committee will prepare briefing note as detailed below and record the
following certificate:
“We have personally gone through the Tender offers and we certify that the
Briefing Note and the Comparative Statement correctly reflect the contents of the
Tender Offers”.
The date up to which the Tenders are valid should be clearly marked on the
forwarding Note to the Tender Committee so as to keep a watch on finalization of
the tender within the validity date of tender.
8.5.2 The Briefing Note will include the following details:–

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General
i) Tender No.
ii) Name of work _______________________________________
iii) Whether retender: If so, the reasons leading to retender:-
________________
iv) Reference to Administrative Approval by Client_____________
Sanction for Expenditure by Client________________________
v) Reference to Technical Sanction of Detailed Estimate by
Competent Authority of RITES (Ref. SOP) or Detailed Estimate
sanctioned by the Client and adopted after checks by RITES
vi) Reference to approval of Tender Documents including NIT by Competent
Authority of RITES (Ref. SOP) or Tender Document furnished by the
Client and adopted after check by RITES.
vii) Date NIT published in the News papers (when applicable)
viii) Date NIT / uploaded in RITES website.
ix) Date Tender Document uploaded in RITES website (where applicable)
x) No. of tender papers sold
xi) No. of tenders, with breakup of those in hard copy supplied by RITES and
those submitted in the form downloaded from website, received and
Earnest Money Deposit envelopes and Envelopes with Cost of Tender
Document (where applicable) opened.
xii) No. of tenders whose Earnest Money Deposit and / or cost of Tender
Document (where tender has been submitted in form downloaded) not
found in order with the names and addresses of Tenderers ______
xiii) No. of tenders whose Earnest Money Deposit and Cost of Tender
Document where Tender has been submitted in form downloaded from
RITES website found in order and addresses of tenderers and Tender No.
allotted ______
xiv) No. of Delayed / Late Tenders received to be returned, unopened, with
names and addresses of Tenderers _____
xv) RTGS details of bidders.
Salient Features of Tender

i) Brief Scope of Work

ii) Estimated Cost
iii) Type of Tender - Item Rate or Percentage Rate or Lump Sum
iv) Stipulated Period of Completion
v) Names of News Papers and dates when NIT published
vi) Date of Pre-Bid Conference
vii) Date and Time When tenders opened
viii) Date upto which tender offers are valid.

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 Salient details of offer by each tenderer (Those whose EMD and Cost of
Tender Document of Bids submitted in form downloaded from RITES
website) are prima facie in order)
i) Name of tenderer
ii) Number allotted to the tenderer
iii) Technical Bid
a) Earnest Money Deposit
– Form in which furnished
– Amount of Earnest Money
– Validity Period
– Whether Earnest Money Deposit acceptable as per Contract Conditions
b) i) Authority to Sign - Whether the person who has signed the
Documents has the necessary Authority to Sign
ii) Integrity Pact : Whether the Integrity Pact annexed to Section I – NIT and
Instructions to Tenderers, has been signed by authorized representative of
Bidder and duly witnessed.
c) Qualification Information
(Supporting Data / Calculations to be annexed)

Sl. Criterion of Minimum Qualification of Reference (Vol. No. & page

No. Qualification qualification tenderer as per No. ) where qualification
required as details details have been furnished
per Tender furnished
Document

d) Deficient documents /information in the Technical Bid.

8.5.3 The Briefing Note should be scrutinized for its completeness by the Project
Coordinator before putting up the same to the nominated Tender Committee (in
cases where he is not the Tender Committee Member). While forwarding Briefing
Note to the Tender Committee, the Project Coordinator shall also enclose
statement of market rates of all major items and peculiar situations/circumstances,
if any, relating to the working conditions in the area where the work is to be
executed, so as to facilitate preparation of Market Rate Cost/Justified Amount, by
the Tender Committee, if required.

8.6 EVALUATION OF TECHNICAL BIDS BY TENDER COMMITTEE

(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

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8.6.1 Tenders are to be evaluated by a Tender Committee consisting of three
members including one from Finance as stipulated in the relevant SOP item on
‘Serving as Members of the Tender Committee’. The members of the Tender
Committee shall be nominated by the Competent Authority of RITES in terms of
Powers indicated in SOP.

If any member of the Tender Committee as constituted has any personal interest
in any of the tenderers participating in the Tender, he should bring this fact to the
attention of the Competent Authority, who shall arrange to replace that member
by another suitable person. The SBU Head may constitute Standing Tender
Committee (with provision for alternate members) if considered feasible by him.
8.6.2 The Tender Committee may go through the briefing note and tender documents
and evaluate the tender as under:

a. First check whether any of the tenderers is currently on RITES’ Negative List of
Contractors. In case any tenderer is found to be on the Negative List of
Contractors, then his tender may not be processed further and this fact be
brought out in the Tender Committee’s recommendations. In case none of the
tenderers is in the Negative List of Contractors then a certificate to this effect
should be recorded in Tender Committee’s recommendations.

b. Then check the Earnest Money Deposit of the Tenderers whose Technical Bids
have been opened to confirm that the same are in order (unless the tenderers
are exempted from payment of Earnest Money as matter of Government
Policy). If the Earnest Money Deposit is not in order, no further action need be
taken for evaluating the Technical Bids of such Tenderers. Similar action
should be taken with regard to Cost of Tender Document when the tender has
been submitted in a form downloaded from RITES website.

c. The Tender Committee will review the “Authority to sign”, “Integrity Pact” and
“Qualification Criteria” and other details furnished in the Technical Bid of those
Tenderers whose Earnest Money Deposit has been confirmed to be in order
(unless the tenderer(s) is /are exempted from payment of Earnest Money as a
matter of Govt. policy). If any details are deficient or are not in order, the
following procedure shall be adopted.

d. Clarification/information need be called for only to obtain clarifications on

documents originally submitted along with the bid. (Since members of Tender
Opening Committee are required to initial all documents submitted by bidders in
support of meeting the qualification criteria, only such documents as initialled by
the members of Tender Opening Committee, will be considered as “originally
submitted along with the bid”.) In no case should the bidder be asked or allowed
to submit additional documents in support of his meeting the qualifying criteria,
which were not submitted along with the original bid. Where it is decided to call
for information/clarification from any bidder, on any document already submitted
along with the original bid, such request may be issued by a letter giving a
reasonable period of 10 to 12 days for submission. In case no response is
received from the Tenderer concerned, or the response received is incomplete
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 no further information/clarification need be called and such tender may be
evaluated on the basis of available documents.

e. The decision to obtain clarifications from the tenderers concerned on the

deficiencies noticed in the documents/information can be taken by the
Convenor of the Tender Committee / Project Coordinator. Recommendation on
satisfaction of qualification criteria shall however be from full Tender
Committee.”
8.6.3 In case any bidder in his declaration, furnishes details of (i) record of poor
performance such as abandoning the works, not properly completing the
contract, inordinate delay in completion, litigation history, financial failure etc., or
(ii) banning of business by any Central /State Government, Department / Public
Sector Undertaking or Enterprise of Central / State Government the Tender
Committee may take action as indicated below, duly furnishing all relevant details
to the Tender Accepting Authority.

If the declaration is of record of poor performance as detailed in (i) above, full

details should be called for by the Tender Committee from the bidder concerned
and / or his past employer on the circumstances leading to such poor
performance. The details should be analysed by the Tender Committee to
determine if the poor performance was due to failure of the bidder or due to
circumstances beyond his control. If assessed as due to circumstances beyond
the control of the bidder, the bid may be recommended to be considered by the
Tender Accepting Authority.

If the declaration is on banning of business as detailed in (ii) above, the Tender

Committee may check if the ban is still current. If the ban is no longer current,
the bid may be recommended to be considered. If the ban is current and is by
the Ministry of Railways or by a PSU under the Ministry of Railways or the
Client’s Ministry, the bid should be recommended to be rejected. If ban is still
current but imposed by any other Central Government Department or Central
PSU or State Government Department or State PSU or Corporation / Local Body,
full details should be called for by the Tender Committee from the bidder
concerned / Department, Government concerned. The details should be
analyzed by the Tender Committee to determine if the ban was due to the failure
of the bidder or circumstances beyond his control. Further action may be taken
as indicated for cases of declaration on record of poor performance, in para
above. Normally in cases of fraud, misappropriation, cheating etc., the bid may
be recommended to be rejected.
8.6.4 Based on a review of the details furnished, the Tender Committee will put up to
the Tender Accepting Authority their recommendation indicating which of the
Technical Bids can be accepted, which Bids can be provisionally accepted
subject to making up of deficient documents/confirmation of credentials from past
clients/Banks and which of them are not acceptable.
Based on the decision of the Tender Accepting Authority, the Tenderers whose
Technical Bids have not been found acceptable will be advised by the Project
Coordinator about this fact in writing giving reasons for non-qualification and
asked to take back the Earnest Money and the unopened Financial Bid (in the
case of a Two Packet System).
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 Such intimation about rejection of their Technical Bids should be sent before
opening of Price Bids from Tenderers whose Technical Bids have been found
acceptable.

8.7 OPENING OF FINANCIAL BIDS

In Single Packet System, the Financial Bids are opened along with the Technical
Bids. In the case of a Two Packet System, after decision on recommendations of
Tender Committee on the Technical Bids, Financial Bids in respect of only those
Tenderers whose Technical Bids are found to be acceptable or provisionally
acceptable shall be opened on a date to be fixed and advised in writing to the
Tenderers concerned. The Tenderers whose Bids have been provisionally
accepted should be clearly advised that their prequalification is only provisional
and will be subject to receipt of deficient documents/confirmation of credentials
from past Clients/Bank.
It may be ensured that Tenderers whose technical bids have not been found
acceptable in the 2 pocket system are intimated to that effect mentioning on
which ground the bidder did not qualify before opening of Financial Bids of
Tenderers whose Technical Bids are found acceptable.
Whenever the Financial Bids are opened, the percentages above / below and the
total Amounts quoted as well as the condition if any, given by Tenderers shall be
read out as described in para 8.3.19

8.8 PREPARATION AND SCRUTINY OF BRIEFING NOTE AND COMPARATIVE

NOTE FOR FINANCIAL BIDS (APPLICABLE FOR BOTH SINGLE PACKET
AND TWO PACKET SYSTEMS)
8.8.1 Nominated Briefing Committee will take over the tender opening register and the
tenders received and go through the same. The Briefing Committee will prepare
briefing note as detailed below and record the following certificate:–
“We have personally gone through the tender offers and we certify that the
Briefing Note and the Comparative Statement correctly reflect the contents of the
tender offers”.

The date upto which the tenders are valid should be clearly marked on the
forwarding note to the Tender Committee.

8.8.2 The Briefing Note, besides details mentioned earlier, shall include the following
details:–
a) Discrepancies noticed in rates/amount quoted on BOQ Items:–
Item Rate Tender
 BOQ item numbers where rates in figures and words as well as the
amount for the item are given by the tenderer but the unit rates in
figures and words don’t agree with each other.
 BOQ item numbers where unit rates in figures and words have been
given but the amount for that item not given.

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  BOQ item numbers where rates in figures and words as well as the
amount for the item are given by the tenderer but the amount does not
correspond with the rate either in figures or in words.

 BOQ item number where unit rates in figures and words agree but the
amount for that item has been given wrongly.

Percentage Rate Tender

 Percentages are quoted in figures and words along with the total tender
amount by the tenderer but the percentages quoted in figures and
words don’t agree with each other.

 Percentages are quoted in figures and words but the total tender
amount is not quoted.

 Percentages are quoted in figures and words along with the total tender
amount but the total tender amount does not agree with the
percentages quoted either in figures or in words

 Percentages quoted in figures and words tally but the total tender
amount has been given wrongly.

b) Conditions stipulated, if any.

c) Total Tender Amount
(To be made out from the details available in the Comparative Statement)

Total amount Tender amount % above / below Remarks (if any)

at unit rates quoted by the RITES’ Total
of RITES for tenderer for all amount, as
all items items quoted

8.8.3 The Comparative Statement will be prepared based on the Financial Bids. The
Performa for Comparative Statements for Item Rate Tenders and Percentage
Rate Tenders are given respectively in Annexures 8.1A and 8.1B. In the case of
discrepancies in rates, amount & percentage, the procedure to be followed will
be as indicated in the Note below Annexure 8.1A and Annexure 8.1B. While
making the Comparative Statement, the estimated effect of the Price Variation
Clause (if any) during the period of implementation of the Contract, will not be
taken into account.
8.8.4 Rates quoted by L-1
In item rate tender, the Comparative Statement made out by the Briefing
Committee will show for each item the estimated unit rate worked out by RITES,
the rate quoted by the tenderer L1 and the percentage above / below RITES’
rates.

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 In Percentage rate tender the comparative chart will show for each Schedule the
percentages above / below on RITES Estimated Cost as quoted by the tenderer
L1.

8.8.5 The Briefing Note should be scrutinized for its completeness by the Project
Coordinator before putting up the same to the nominated Tender Committee in
cases where he is not the Tender Committee member.

8.8.6 While forwarding Briefing Note to the Tender Committee, the Project Co-
ordinator shall draw the attention of the Tender Committee to the statement of
market rates of all major items and peculiar situations/circumstances, if any,
relating to the working conditions in the area where the work is to be executed,
the details of which were forwarded to the Tender Committee in terms of para
8.5.3

8.9 EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE (APPLICABLE

FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

8.9.1 The Tender Committee has to assess the reasonableness of the offers. Tenders
with any condition shall normally be rejected. However tenders with conditional
rebates / discounts may be considered, but without taking into account the
conditional rebates / discounts for the purpose of evaluation of the bid price.
Tender Committee should specifically draw the attention of Tender Accepting
Authority to such conditional rebates/discounts and to the fact that the evaluated
cost of the tenders is without considering such rebates/discounts. Tenders with
unconditional rebates can be accepted. If any rebate / discount is offered suo-
moto by any tenderer after the opening of tenders, the same may be considered
if his tender is otherwise also the lowest. But in case the tender is due for
rejection due to high rates, suo-moto discount should not be considered.

8.9.2.1 Total Amount quoted by valid L-1 tenderer

This should be compared with the estimated cost put to tender duly modified by
variation in Cost Index in case where there is documentary proof in change of
Cost Index between that adopted for framing the Estimate and that prevailing on
the last date for submission of tender. When 80% or more of the estimated cost
is based on a published Schedule of Rates, there is no need for preparing market
rate analysis in case the lowest tender is less than 110% of the Estimated Cost
put to Tender duly modified by variation in Cost Index as detailed above and L1
offer can be recommended for award of work. When less than 80% of the
estimated cost is based on a published Schedule of Rates (say, A%) and the rest
of the estimated cost is based on market rates, or Last Accepted Rates, or Last
Accepted Rates duly modified or assessed rates, then the figure of 110%
specified above, will be suitably modified as under up to which there is no need
for preparing market rate analysis and L1 offer can be recommended for award
of work. -
100 + [10xA + 5x(100 - A)]/100
In case L1 offer is more than the above limit, the following paras will apply.
8.9.2.2 Reasonability of the rates of Tender received is to be seen and commented upon
by the Tender Committee. While analyzing tenders, rates of tenders of similar
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nature of works accepted within about last 6 months may be ascertained without
GST on works Contract. Similar works shall mean works similar in nature,
quantum, specification and located in the near vicinity. If required, cost based on
market rate analysis may be prepared on the basis of market rates of all major
items and peculiar situations / circumstances, if any, relating to the working
conditions in the area where the work is to be executed, as furnished by the
Project Coordinator in terms of Para 8.8.6 above. The cost assessed as justified
based on value of similar works or on market rate analysis as the case may be,
should be compared with L1 offer and following action may be taken. On
methodology for making out Market rate analysis / justified rate analysis Para 4.9
may be referred to.

i) When L-1 offer exceeds the justified cost / market rate analysis cost by
upto 7% (where the estimated cost put to tender is less than Rs.100
crores); upto 6% (where the estimated cost put to tender is more than
Rs.100 crores but less than Rs.200 crores) or upto 5% (where the
estimated cost put to tender is more than Rs.200 crores) the variation can
be ignored and L-1 offer can be recommended for acceptance.

ii) When L-1 offer exceeds the justified cost / market rate analysis cost by
between the aforesaid figures and 12%, L1 offer may be recommended
for acceptance in cases of urgency / emergency and for recorded
reasons. In such cases, detailed recommendations will be required to be
given to the Tender Accepting Authority analyzing the implications of
accepting L-1 offer with or without negotiation as against re-tendering.

iii-a) When L-1 offer exceeds the justified cost / market rate analysis cost by
more than 12%, it should not normally be recommended for acceptance.

In such cases, recommendation to the Tender Accepting Authority should

be for conducting negotiations. If, after negotiations, the negotiated offer
comes within 112% of the justified cost/market rate analysis cost, the
tender should be dealt with in accordance with (ii) above. If, however,
even after negotiations, the negotiated offer exceeds the justified
cost/market rate analysis cost by more than 12%, the recommendation to
the Tender Accepting Authority should be for the Client to be advised on
all the facts and the Client’s decision taken on whether re-tendering
should be done or due to urgency / emergency requirements or for any
other reasons, the negotiated bid of L 1 may be accepted as such.

iii-b) When L-1 offer exceeds the justified cost / market rate analysis cost by
more than 12%, it should not normally be recommended for acceptance.
In such cases, recommendation to the Tender Accepting Authority should
be for conducting negotiations. If, after negotiations, the negotiated offer
comes within 112% of the justified cost/market rate analysis cost, the
tender should be dealt with in accordance with (ii) above. If, however,
even after negotiations, the negotiated offer exceeds the justified
cost/market rate analysis cost by more than 12% in the cases where the
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 Client is Indian Railways having awarded the work to RITES on turnkey
basis, the Tender Committee may apprise to the Tender Accepting
Authority all the facts and recommendations be made for consideration
and approval for acceptance or re-tendering . However, after approval of
the Accepting Authority and before LOA is issued to the
Agency/Contractor, the Engineer-in-Charge need to inform Ministry of
Railways that after finalization of tender, work is being awarded at Rs.
_____ (Contract Price to be mentioned here), which is higher than the
approved estimates. Further, Engineer-in-Charge shall ensure that in the
LOA to be issued to the Agency/Contractor, it should be mentioned that
before commencement of work or making any commitment for the project,
the contractor will seek confirmation from RITES to commence the work.
Agency request for commencement should be approved by the Accepting
Authority after Finance vetting.

iv) In case of all greenfield projects which are located at a distance of more
than 100 kms away by road from a town/city with a municipality,
corporation, cantonment board or notified town area committee, etc., the
figures of justified percentages specified in paras 8.9.2.1 and 8.9.2.2 may
be further relaxed by upto three percentage points.

v) In case, on re-inviting open tenders for the 2nd or 3rd time, the L1 offer
continues to remain higher than 12% (15% in case of greenfield projects
described in para iv above) of the cost of similar works accepted in recent
past or the cost based on market rates, then detailed reasons for the
same should be examined and all factors analysed, if required by
discussions with bidders. Persistent high rates even during 2nd or 3rd
call for open tenders may be a pointer to (a) comparison being made with
a dissimilar work (b) market rates being incorrect due to non-
consideration of transportation cost from source to site (c) site conditions
being difficult due to (i) inaccessibility (ii) non-availability of water & power
(iii) water-logging (iv) no space for labour camp (v) encroachments
on/near site (vi) law and order problems etc. A report covering the above
aspects and suggesting remedial steps should be put up to the accepting
authority for apprising the client.

vi) When L1 offer is less than 85% of the Estimated Cost put to tender, the
Bid should be treated as undervalued. The Tender Committee in its
recommendation to the Tender Accepting Authority may state that in view
of Clause 1 of GCC, the bidder may be asked to furnish Additional
Performance Guarantee to the extent the total quoted cost is lower than
85% of Estimated Cost put to tender.

8.9.2.3 The Convener of the Tender Committee must ensure before submission of
recommendations to the Tender Accepting Authority that verification of
documents/credentials of L1 bidder is completed by Project Coordinator as per
S.No.3 of Para 8.4 and suitable mention is made thereof in the recommendations
of the Tender Committee. In case, a bidder claims to be covered under the Public
Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012
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 (available at Annexure 8.5 of these Guidelines) and seeks concessions there
under, the Tender Committee should examine the matter on merit and submit its
recommendations to the tender accepting authority. The benefits under Public
Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 are
applicable to only Supply and Service Contracts

8.9.2.4 All the members of the Tender Committee should furnish a certificate in the
tender evaluation report that the tenderer recommended by them is not in RITES’
Negative List of Contractors and in case the tenderer is a Joint Venture, the
certificate should state that the JV or any individual member of JV is not in the
Negative List of Contractors. Further, they should certify that none of them has
any personal interest in any of the tenderers who have participated. In addition,
the Tender Committee should furnish a certificate that none of the bidders has
claimed to be covered under the Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 in case no bidder claims to be covered by the
said order.The benefits under Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 are applicable to only Supply and Service
Contracts

8.9A EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE (APPLICABLE

FOR TENDERS PERTAINING TO SURVEY/GEOTECHNICAL
INVESTIGATIONS/PLANNING/CONSULTANCY/DESIGN WORKS

8.9.1A The Tender Committee has to assess the reasonableness of the offers. Tenders
with any condition shall normally be rejected. However, tenders with conditional
rebates/discounts may be considered, but without taking into account the
conditional rebates/discounts for the purpose of evaluation of the bid price.
Tender Committee should specifically draw the attention of Tender Accepting
Authority to such conditional rebates/discounts and to the fact that the evaluated
cost of the tenders is without considering such rebates/discounts. Tenders with
unconditional rebates can be accepted. If any rebate/discount is offered suo-
moto by any tenderer after the opening of tenders, the same may be considered
if his tender is otherwise also the lowest. But in case the tender is due for
rejection due to high rates, suo-moto discount should not be considered.

8.9.2A Total amount quoted by valid L-1 tenderer should be compared with the
estimated cost put to tender. The estimated cost should be prepared on the
basis of the trend of tenders for similar works accepted in the recent past duly
updated for factors likely to affect the cost. In such cases a variation of +/- 25%
between the estimated cost and the L-1 offer will be considered normal and the
tender can be considered for acceptance. Otherwise, the following action should
be taken:
i) When L-1 offer exceeds the estimated cost by more than 25% and up to 40%, a
rate analysis should be called from the L-1 tenderer. On examination of the rate
analysis, if the tender committee feels that the rates given by the L-1 tenderer are
justified, tender may be recommended for acceptance. If the L-1 offer is higher
by more than 40% as compared to the estimated cost, tenders should be
discharged and re-invited with the revised estimated cost.

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ii) When L-1 offer is lower by more than 25% as compared to estimated cost, the
bid should be treated as unbalanced. The workability of the rates should be
assessed and commented upon by the Tender Committee in its
recommendations to the Tender Accepting Authority. For this purpose, the
Tender Committee may advise L-1 bidder to produce detailed rate analysis for
any or all items of Bill of Quantities to demonstrate the inherent consistency of
those rates with the estimated cost. If on evaluation, rate analysis is not found to
be satisfactory, the bidder should be asked to furnish Additional Performance
Guarantee to the extent the total quoted price is lower than 75% of estimated
cost.
8.9.3A The Convener of the Tender Committee must ensure before submission of
recommendations to the Tender Accepting Authority that verification of
documents/credentials of L-1 bidder is completed and suitable mention is made
thereof in the recommendations of the Tender Committee.
8.9.4A All the members of the Tender Committee should furnish a certificate in the
tender evaluation report that the tenderer recommended by them is not in RITES
negative list of contractors and in case the tenderer is a JV, the certificate should
state that the JV or any individual member of JV is not in the negative list of
contractors. Further they should certify that none of them has any personal
interest in any of the tenderers who have participated.
8.10 TENDER COMMITTEE’S RECOMMENDATIONS AND ACTION BY THE
TENDER ACCEPTING AUTHORITY
8.10.1 Where Accepting Authority is Client, recommendation of Tender Committee may
be put up direct to the Client.
8.10.2 The Market Rate Cost/Justification Statement to be prepared by Tender
Committee should be as per accepted norms, current and realistic. Reasonability
of the rates of tenders received is to be seen and commented upon by the
Tender Committee. Market rate analysis is to be used as one of the means
among other things for making recommendation by Tender Committee and is not
binding.
8.10.3 The recommendations of the Tender Committee should be carefully considered
and decision taken on acceptance or otherwise of the same. In case any
clarifications are required from the Tender Committee the same shall be sought
without delay.
8.10.4 In case, after receipt of tenders, it becomes necessary to forward the tenders to a
higher authority for acceptance due to the tender offer of L-1 going beyond the
power of original Tender Accepting Authority on account of higher quoted rates,
while forwarding tenders to the higher authority, details like (a) validity period of
the tender, (b) time already taken for scrutiny and (c) balance period available
should be prominently indicated to ensure that there is no delay in processing of
tenders and decisions are taken well in time.

8.10.5 In case of tender where validity period has already expired, decision to accept
the same should be taken only after validity period is got extended.

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8.10.6 Where the Contract amount as decided to be accepted goes beyond the amount
approved by the Client, Client’s prior acceptance is to be taken in light of the
provisions in the Agreement between RITES and the Client.

8.10.7 When tender offer results in exceeding the amount technically sanctioned for the
work by an amount greater than the power of the technical sanctioning authority,
revised Technical Sanction is required to be issued by the next higher Competent
Authority before acceptance of tender.

8.10.8 The Tender Accepting Authority, should normally accept the offer of L1, the
tenderer who has satisfied the Qualification Criteria, (including verification of
authenticity of its certificates/credentials) whose tender is unconditional and is in
order in all respects and whose quoted amount is considered reasonable. If the
quoted amount is considered unreasonably high, the Client should be consulted
on whether, in view of urgency, the tender can still be accepted or retendering
done.

8.10.9 The acceptance of tender should be unconditional. If however L1, whose offer is
otherwise acceptable, has offered conditional rebates/discounts, they can be
accepted, it they are not in violation of any provisions in the Contract Conditions
and can be practically implemented. Such conditional rebates / discounts
should not be taken into account, while evaluating the Tenders. The above
provisions will apply equally well to any suo-moto offer of rebates / discounts by
L-1 after opening of Tenders. No Letter of Acceptance can be treated as valid if
it conveys acceptance subject to conditions.

8.11 PURCHASE PREFERENCE TO PUBLIC SECTOR ENTERPRISES

8.11.1 In consonance with the Government instructions contained in OM

No.DPE/13(1)2007-Fin. Dated 21.11.2007 of Department of Public Enterprises,
Ministry of Heavy Industries & Public Enterprises, Government of India, purchase
preference to the Public Sector Undertakings has been terminated w.e.f.
31.3.2008. Annexure 8.5 may be referred to so far as Public Procurement
Policy for Micro and Small Enterprises is concerned.

8.12 ACCEPTANCE OF SINGLE TENDER

There are occasions when in response to call for open tenders, only single
tender is received. The Powers of Acceptance by RITES officials to be applied
will be under item of Schedule of Powers for Open Tenders. In case of single
tender received against a Limited Tender, fresh tenders should be invited unless
the work is very urgent. Where the single response is proposed to be accepted,
the authority to accept the recommendation of the Tender Committee will be as
for a Single Tender prescribed in relevant item of SOP. In such cases, detailed
reasoning for classifying the work as ‘Very Urgent’ should be recorded by the
Tender Committee and the Tender Accepting Authority in terms of SOP should

66
 specifically confirm its acceptance of such a recommendation due to urgency of
work.

8.13 PROCEDURE FOR CONDUCTING NEGOTIATIONS

i) Normally there should be no post-tender negotiations. Negotiations should

strictly be in certain exceptional situations like, for procurement of proprietary
items, where there is suspicion of pooling/cartel formation with unreasonable
rates etc.

ii) Negotiations, wherever held, should only be with L1 tenderer.

iii) Counter offer to L-1, in order to arrive at an acceptable price, shall amount to
negotiations.
iv) Before resorting to negotiations, adequate care should be taken to scrutinize
the rates received and convincing reasons recorded by Tender Committee
and accepted by Accepting Authority to conduct negotiations to avoid in
fructuous instances of negotiations.
v) There shall be no compromise on transparency, equity or fair treatment to all
the participants in a tender.
vi) It should be ensured that tenders are invariably decided within their validity
period including the time required to conduct negotiations, if any, with L-1
tenderer.
vii) In case L-1 backs out, there should be a re-tender.

8.14 COMMUNICATION OF ACCEPTANCE OF TENDER

8.14.1 The tender for works shall remain open for acceptance for a period of 90 days, or
as stipulated in the Tender Document from the last date of submission of
tenders, unless it is got extended with the consent of Tenderers.
8.14.2 After a decision is taken by the Tender Accepting Authority in favour of the
successful tenderer, “Letter of Acceptance” (LOA) in the Proforma at Annexure
8.2 should be sent to the contractor through Registered Post Acknowledgement
Due or Courier or Fax. It is important to preserve the proof of sending the LOA
and its delivery to the tenderer. The LOA should, inter-alia, contain instructions
to the tenderer to furnish Performance Guarantee and Additional Performance
Guarantee (if applicable) within the period indicated in Schedule F and the form
indicated in Clause 1 of GCC. A copy of the LOA (Letter of Acceptance) should
also be endorsed to RITES officials concerned and the following other officers:

i) Labour Officer concerned

ii) Asstt. Labour Commissioner

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8.14.3 The Tenderers whose tenders are rejected should also be sent written intimation
about the rejection.

8.14.4 (i) In the Letter of Acceptance (Format at Annexure 8.2) reference should be
given to all the Contractor’s letters received with the tender or thereafter
and of RITES’ replies accepting or rejecting such requests. Copies of all
the correspondence will form a part of the Contract.
(ii) The Letter of Acceptance will form a Binding Agreement between RITES
(acting for and on behalf of the Employer as Agent/Power of Attorney
Holder) and the Contractor, till formal Agreement is executed between the
two parties.
(iii) The formal Agreement on Non Judicial Stamp Papers of appropriate value
shall be executed between RITES (acting for and on behalf of the
Employer as Agent/Power of Attorney Holder) and the Contractor within 28
days from the date of issue of LOA. The Agreement will be in the form at
Annexure 8.3 for which the Contractor is to supply the Stamp Papers. As
mentioned in the LOA, no payment to the Contractor for works can be
effected till the formal Agreement is executed.
iv) Copies of the Agreement should be made out as bound volumes with each
page numbered and bearing the dated initials with seal of the authorized
signatory of both RITES and the Contractor.
8.14.5 Letter of Acceptance and Contract Agreement should be got vetted by Finance
before issue. In the copy of these documents to be endorsed to Finance section
concerned, it should be clearly mentioned that they are based on approval of the
tender by the Competent Authority of RITES.

8.14.6 No Letter of Acceptance should normally be issued to the Contractor till the entire
site of work is available without any hindrances and encumbrances, Local Body’s
approval available for use of land for the purpose proposed by the Client and
approval of plans from the Local Body. In case there are delays or problems in
getting a part of site and the work is to be started on Client’s request, the Client
should be made fully responsible for the resultant liability including possible
Contractor’s claims on this account. The Client should be specifically advised of
this.

8.14.7 No Letter of Acceptance should be issued till sufficient funds are deposited by
the Client. The Works Contract should make a provision that the payment to the
Contractor will be made only on receipt of funds from the Employer (Client) for
and on whose behalf RITES are entering into the Contract as an Agent / Power
of Attorney Holder. This aspect has been taken care of in the Standard Format
of RITES Tender Documents.

8.14.8 Copies of Letter of Acceptance and Contract Agreement should be sent to the
Client being the Employer. In the Letter of Acceptance addressed to the
Contractor, endorsement of copy to the Employer should be prominently

68
 displayed to draw the attention of the Contractor to the fact that RITES’ action is
for and on behalf of the Employer as an Agent/Power of Attorney Holder.

8.15 TIME LIMIT FOR FINALIZATION OF TENDERS

Top priority should be given to decide the award of work on receipt of tenders.

Time limits laid down for various stages involved in finalization of tenders have
been indicated in Annexure 8.4 and should be adhered to since the validity
period of tenders is normally only 90 days from the last date of submission of
tender.

8.16 REINVITATION OF TENDERS

If the Lowest Tenderer backs out, there should be retendering in a transparent

and fair manner. In such a situation, the NIT approving authority may advise to
call for Limited Tenders if so justified in the interest of work. While retendering
for the work, tender will not be issued to the Contractor who has backed out.

69