TENDERS & THE ROLE OF

ACCOUNTS
 • WHAT IS A TENDER

• It is a request which is formal, structured invitation to suppliers or service providers to submit a bid to supply
products or services.

 Example

 To carry out any construction work

 To carry out renovations or maintenance work

 Hiring a vehicle

 Run a parking lot

 TYPES OF TENDER
 On basis of mode of tendering
Open Tender
Limited Tender
Special Limited Tender
Single Tender
Global Tender
 On basis of nature of work
Works Tender
Service Tender
Stores Tender
Earnings Tender
 EPC TENDERS

• Engineering, Procurement and Construction Contract

• Role Of An EPC Contractor

 Detail engineering or design involved with the project

 Procurement of all the necessary equipment and materials required to build the project

 Construction of the facility

 Making it ‘ready to use’ and handover to the owner.

 In addition to the delivery of the complete facility, the EPC contractor must deliver it within a
guaranteed time and guaranteed price.
 EPC TENDERS
• Tenders for New Line, Gauge conversion, Doubling, large colonies,
workshop, important Bridges shall normally be EPC tenders.
• Tender value of more than Rs.100 Cr limit has been withdrawn
w.e.f.04.03.2022.
• Zonal Railways has to go for EPC tender irrespective of value of tender.
• In case EPC tenders are not invited, personal approval of GM is to be
obtained.
• Scope of work is to be approved by CAO/CN.
 EPC TENDERS

• DPR is to be prepared after proper survey before invitation of tender.

• Raiwaly Board issued standard documents for EPC to be followed.
• The object of EPC is to avoid time and cost overrun of conventional
item rate contracts by engaging professionally managed agencies.
• First EPC in Indian Railway – Electrification project of 781 Route
Kilometer for Rs.1050cr awarded by CORE and Konkan Railway in
August 2017.
 E - TENDERING

What is e-tendering?

• An internet based process where entire tendering process is done online through IREPS portal.

 To bring more transparency and fairness in the system

 To speed up the system and make it more efficient

 To make tendering free from any manipulation

• To process the tenders manually in exceptional cases, personal approval of GM is to be obtained.

 GeM contracts
 It is mandatory that procurement of common use Goods and services available on GeM through GeM only.
 Services to be procured through GeM are:
 Hiring of vehicle, Transportation of material
 Sanitation and housekeeping services.
 Skilled or unskilled manpower hiring , professional staff hiring etc.
 Finance officer, shall take an undertaking from the executive officers while vetting the estimates & tender
documents that the item/services will be procured through GeM only, if it is available in GeM.
 Terms and Conditions of GeM contract are governed by Terms of condition of GeM. In addition, if any
conditions specific to the tender is to be included, the same can be added in special terms and conditions of
Railway.
 Previously Stores officers procured such services on submission of demand or request by the user along with
sanction of competent authority and funds availability certificate. Now powers have been given to concerned
user departments themselves to procure service from GeM.
 Below 50 lakhs direct acceptance ofTENDERING
tender by PROCESS
Executive

 Above 50 lakhs –Tender Committee

 No verification of original documents required as evaluation of tender is based on affidavit

submitted by the tenderer.

 No vetting of Brief Note.

 Tender notice period is 30 days which can be reduced upto 21 days with the approval of
competent authority without Finance Concurrence.

 Tender validity period reduced to 45 days

 For e-tenders below 50 lakhs LOA VETTING

 Direct acceptance of tenders

 To check rates & items in tender schedule as per the estimate

 Onus on executive department to justify rates

 Tender Accepting authority has to record his speaking order in support of acceptance of the
L1 offer.

 TC below 50 lakhs only if L1 is being discharged

 ROLE OF FINANCE MEMBER IN TENDER COMMITTEE

 To check for rate reasonableness based on average of last accepted rates (LARs)

 Tender called on sanctioned estimate

 Ensure no procedural lapse

 Ensure fair competition

 Correlation between estimate and tender schedule

 To cross-check submitted documents

 To ensure similar work in the tender document is as per the definition approved by PHOD.

 To ensure Tender notice period is as per extant rule and tender is finalised well within the
Tender validity period.
 CONTRACT AGREEMENT VETTING

 Is CA as per the tender document and LOA issued

 Recommendations of tender committee are part of the CA

 Timely submission of Performance Guarantee within 21 days/ 30 days in case of service contract of issue of
LOA.

 Is the PG in required form

 Is contract agreement signed by authority who is competent to sign it.

 Works contract
• Def :Work contemplated for delivery of Services as per drawings and
schedules set forth in the Bid forms and required to be executed
according to the specifications.
• Works contract is governed by GCC for Works 2022 – April 2022.
• Single / Two Packet system :
Upto Rs.10 Cr – Single packet
including and above Rs.10 Cr – Two packet.
 Service Contract
• Def : Service means any subject matter of procurement other than goods or works,
except those incidental or consequential to the service and includes physical,
maintenance, housekeeping, professional, intellectual, training, consultancy and
advisory services or any other service classified or declared as such by a procuring
entity but does not include appointment of an individual made under any law, rules,
regulations or order issued in this regard.
 Governed by GCC for services 2018
 Two packet system (technical bid and financial bid) above 50 lakhs
 Technical eligibility and financial eligibility criteria different from works tender
 Points based system to rank the bidders
 Tender validity period is 60 days
Thank U