Government of India Ministry of Railways East Central Railway

shankar prasad
Date: 2020.02.28
12:49:36 IST
Reason: IREPS
Document
Location: IREPS-CRIS
भारत सरकार
रे ल मं*ालय
पूव/ म0य रे लवे
Government of India
Ministry of Railways
East Central Railway
Office of Principal Chief Materials Manager

Ground Floor, Old GM Building
Hajipur,
Dist. Vaishali (Bihar), PIN – 841101
INDIA
Fax: +91-6224-274340
http://www.ecr.indianrailways.gov.in/
INTEGRATED BID DOCUMENTS

FOR STORES e-TENDER
(v. 2.0 Issued on – 24 February 2020)
(Superceeds: ECR-ET-BidDoc-R1 issued on 20 Feb 2020 )
Signature Not
Verified
Digitally signed by
SANJIV KUMAR ROY
Date: 2020.02.24
14:01:26 IST
Reason: IREPS-CRIS
Location: New Delhi
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Bid documents consists of the following :
Part · I Tender Document
Bid invitation.
Schedule of Requirements / Tender schedule
Special Conditions of Tender.
Part · II Integrated Bid Document
Section ·1 Instructions to Tenderers.

Section -II General Conditions of Contract.
Section III- Indian Railway Standard Conditions of Contract for the Stores Department
Section -III Annexures.
Part III Drawings, Technical Specification
NB:
1. Bidders are advised to go through the user manuals available on IREPS

(www.ireps.gov.in) for submission of bids on IREPS and other activities.
2. Railway Board circulars are available at

http://www.indianrailways.gov.in/railwayboard/index.jsp
ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 2 of 95

EAST CENTRAL RAILWAY- INTEGRATED BID DOCUMENT
PART II: INTEGRATED BID

DOCUMENT
Table of Contents
Table of Contents ................................................................................................................................ 3

Section - I: KEY INFORMATION AND CONTACTS ........................................................................ 6
1. Information about Headquarters ................................................................................................. 6
2. List of some abbreviations used in this document ...................................................................... 7
Section- II: INSTRUCTIONS TO BIDDERS FOR e-TENDERS ......................................................... 8
1. GENERAL INSTRUCTIONS .................................................................................................... 8
2. DRAWINGS AND SPECIFICATIONS ................................................................................... 11
3. COMPLIANCE WITH TECHNICAL SPECIFICATION ....................................................... 11
4. SAMPLE IN TENDER ............................................................................................................. 12
5. INSPECTION ........................................................................................................................... 12
6. ELIGIBILITY CRITERIA ........................................................................................................ 13
7. EFFECTS AND VALIDITY OF BIDS .................................................................................... 15
8. PROCUREMENT FROM MANUFACTURER’S AUTHORIZED
AGENT/DEALER/DISTRIBUTOR ................................................................................................. 16
9. PURCHASE PREFERENCE TO MSE, STARTUPs AND MAKE IN INDIA ....................... 17
10. OPENING OF TENDER ...................................................................................................... 20
11. EARNEST MONEY DEPOSIT............................................................................................ 21
12. SECURITY DEPOSIT .......................................................................................................... 22
13. COMPLIANCE WITH TAXATION LAW.......................................................................... 25
14. PRICES ................................................................................................................................. 26
15. EVALUATION OF BIDS .................................................................................................... 27
16. LOCAL CONDITIONS ........................................................................................................ 29
17. PAYMENT TERMS ............................................................................................................. 29
18. DEDUCTIONS ..................................................................................................................... 29
19. PAYMENT PROCEDURE................................................................................................... 29
20. BIDS FOR IMPORTED STORES IN INDIGENOUS TENDERS ...................................... 31

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21. DISTRIBUTION OF PROCURABLE QUANTITY............................................................ 32

22. ACCEPTANCE OF BIDS .................................................................................................... 34
23. CARTEL FORMATION ...................................................................................................... 35
24. SPECIAL INSTRUCTIONS FOR PROCUREMENT OF M&P ITEMS ............................ 35
25. SPECIAL CONDITIONS FOR REVERSE AUCTIONS .................................................... 37
SECTION - III: GENERAL CONDITIONS OF CONTRACT ............................................................ 43
SECTION- IV: IRS CONDITIONS OF CONTRACT ......................................................................... 52
0100 Definitions and Interpretation : ........................................................................................ 52
0200 Parties:............................................................................................................................. 54
0300 Quotations of rates by Contractors:................................................................................... 55
0400 Contract ............................................................................................................................. 55
0500 Security Deposit ................................................................................................................ 55
0600 Delivery: .......................................................................................................................... 56
0700 Time for and Date of Delivery; the Essence of the Contract ........................................... 57
0800 Extension of time for delivery ........................................................................................ 58
0900 Examination of Drawing, Specifications and Patterns ...................................................... 59
1000 Mistakes in Drawing ...................................................................................................... 59
1100 Samples ............................................................................................................................. 59
1200 Risk of Loss or Damage to Government or Purchaser's Property .................................... 60
1300 Inspection by Inspecting Officer ...................................................................................... 61
1400 Charges for Work Necessary for Completion of the Contract ........................................ 63
1500 Responsibility of the Contractor for Executing the Contract .......................................... 63
1601 Use of Raw Materials secured with Government Assistance ........................................... 65
1700 Indemnity .......................................................................................................................... 66
1800 Packing .............................................................................................................................. 66
1900 Notification of Delivery: ................................................................................................... 67
2000 Progress Reports: ............................................................................................................ 67
2100 Freight ............................................................................................................................... 68
2200 Removal of Rejected Stores .............................................................................................. 68
2300 System of Payment............................................................................................................ 69
2400 Withholding and lien in respect of sums claimed ............................................................. 69
2403 Lien in respect of Claims in other Contracts ................................................................... 70
2500 Corrupt Practices .............................................................................................................. 70
2600 Insolvency and Breach of Contract ................................................................................... 71

2700 Laws governing the Contract: ........................................................................................... 71

2900 Settlement of Disputes ...................................................................................................... 72
3000 Fall Clause: Deleted ......................................................................................................... 79
3100 Inspection & Rejection.................................................................................................... 80
3101 Notification of Result of inspection: ................................................................................ 80
3102 Inspection Notes:............................................................................................................. 80
3200 Warranty/Guarantee: ........................................................................................................ 80
3300 Book Examination Clause:.............................................................................................. 81
3400 Inspection at the Fag End of the Delivery Period: ............................................................ 81
3500 (Additional) special conditions: ....................................................................................... 82
3600 Purpose of Contract and Parties to the Contract ............................................................... 82
3700 Delivery............................................................................................................................. 83
3900 Maintenance and Replacement of Stocks. ........................................................................ 83
4000 Reporting Progress of Contract ......................................................................................... 83
SECTION· III: ANNEXURES ............................................................................................................. 84
ANNEXURE – A : DECLARATION BY BIDDERS FOR EMD EXEMPTION ........................... 84
ANNEXURE – B : NO CLAIMS CERTIFICATE TO BE GIVEN BY CONTRACTOR .............. 85
ANNEXURE - C: FORMAT OF BANK GUARANTEE (BG) FOR SECURITY DEPOSIT (SD)
.......................................................................................................................................................... 86
ANNEXURE – D: FORMAT FOR BG FOR WARRANTY (WBG) .............................................. 88
ANNEXURE – E: MANDATE FORM FOR NEFT/RTGS ............................................................. 90
ANNEXURE – F: FORMAT FOR PERFORMANCE STATEMENT ............................................ 92
ANNEXURE – G: FORMAT FOR MANUFACTURING CAPABILITY OF BIDDERS ............. 93
ANNEXURE – H: CRITERIA AND FORMAT FOR ASPECT OF SISTER CONCERN OF
FIRMS VENDORS OF FIRMS/VENDOR/BIDDERS .................................................................... 94

Section - I: KEY INFORMATION AND CONTACTS
Section - I: KEY INFORMATION AND CONTACTS

1. Information about Headquarters
PAN AAAGM0289C Ministry of Railways

GSTIN 10AAAGM0289C1ZY State (Bihar)
09AAAGM0289C1ZH State (UP)
20AAAGM0289C1ZX State (Jharkhand)
23AAAGM0289C1ZR State (MP)
Address for financial matters : Principal Financial Adviser
Payment, GST, Bank East Central Railway
Guarantee , Hajipur-844101 (Bihar)
Demand Draft etc.
Account Details of PFA/ECR Beneficiary name: FA&CAO/E.C.Railway
for submission of Bank Bank name: STATE BANK OF INDIA
guarantee Branch Name: Main Branch, Cinema Road, Hajipur
IFSC Code: SBIN0000088
Account Number: 11042155126
Address for tender and Office of the PCMM
contract Ground floor , Old GM Building
Hajipur-844101 (Bihar)
Telephone 06224-277394,274340
Fax 06224-274340
website of ECR www.ecr.indianrailways.gov.in
website for e-tenders www.ireps.gov.in

2. List of some abbreviations used in this document
Abbreviation Full form

ADRM Additional Divisional Railway Manager
AMC Annual Maintenance Contract
CAO Chief Administrative Officer
CMM Chief Materials Manager
CWM Chief Workshop Manager
DA Document of Authorisation
DC Denial Clause
DP Delivery period
DRM Divisional Railway Manager
DSC Digital signature certificate
ECR East Central Railway
EMD Earnest Money Deposit
FOR Free on Rail/Road
GM General Manager
GST Goods and Services Tax
IREPS Indian Railway E-procurement system
LC Letter of Credit
LD Liquidated damages
M&P Machinery and Plant
MSE Micro and Small Enterprises
NPQ Net procurement quantity
OEM Original equipment manufacturer
PCMM Principal Chief Materials Manager (earlier known as Controller of Stores
(COS))
PFA Principal Financial Adviser (earlier known as Financial Adviser and Chief
Accounts Officer (FA&CAO)
PO Purchase Order
PU Production Units
PVC Price Variation Clause
RA Reverse Auction
RDSO Research Designs and Standards Organisation
RITES RITES Ltd.
SVC Statutory Variation Clause
SD Security Deposit
MOEF Ministry of Environment and Forests
TDS Tax deduction at Source

Section- II: INSTRUCTIONS TO BIDDERS FOR e-TENDERS

1. GENERAL INSTRUCTIONS
1.1 On behalf of the President of India, the Principal Chief Materials Manager (PCMM), East
Central Railway, Hajipur (hereinafter referred to as the ‘Purchaser’ or ‘ECR’ or ‘Railways’) invites
electronic tenders (e-tenders) from potential bidders/suppliers ((hereinafter referred to as the
tenderer/vendor/firm) for the supply of items as mentioned in NIT (Notice Inviting Tender) and
schedule of tender.
1.2 Before submission of bid, Bidder or Tenderer should study all the terms and conditions
mentioned in the tender document alongwith the files/document(s) attached with the tender.
1.3 The process of Bidder Registration on IREPS (Indian Railway E-procurement System),
which is mandatory for submission of bids against E-tenders, is given on Homepage of website:
www.ireps.gov.in. The detailed User manual for Vendors is also available in ‘learning center’ link of
this website. The digital signature of bidder on the e-bid will be considered as a confirmation that
they have read and accepted all the conditions given in tender document(s) unless specific deviation
is quoted at appropriate place in the Techno-commercial offer form of the e-bid. The bidders are
required to follow the procedure given by IREPS for submission of bids. No clarification can be
given by ECR, as the website is maintained by CRIS, New Delhi.
1.4 The Contract/Purchase Order placed against the tender will be governed by all the conditions
mentioned in the schedule of tender and documents attached with the tender. The provisions of
various statutory laws (such as The Indian Contract Act-1872, Sale of Goods Act-1930, GST Act-
2017, Arbitration and Conciliation Act-1996 etc: with their latest amendments) which are directly or
indirectly related to the different aspects of contract : Bidding, Decision/conclusion/Formation,
Operation and Execution of the contract : shall also be applicable to the contract. The successful
bidder on whom the contract is place will be known as the “Supplier or the “Contractor”.
1.5 Throughout these Bidding Documents, unless context indicates other -wise:
(a) the term “in writing” means communicated in written form (e.g. by mail, e-mail, fax, telex)
(b) if the context so requires, “singular” means “plural” and vice versa;
(c) “Approved firms” or “Approved Vendors” means Vendors approved as Approved Sources by
the Vendor Approving Authority such as RDSO, PU etc.
(d) “day” means calendar day.
(e) “bidder” or “tenderer” means the person or firm submitting the offers against the tender and
includes juridical persons
(f) “Developmental firms” or “Developmental Vendors” means Vendors approved as
Developmental Sources by the Vendor Approving Authority such as RDSO, PU etc.
(g) “Firms” means bidders having any corporate form including partnerships
(h) “Railway Administration” means the East Central Railway Administration constituted under
the Railway Act, 1989
(i) “Railway Board” means the Railway Board constituted under the Indian Railway Board Act,
1905

1.5.1 All electronic forms of communication, including the electronic submission of offers or
communications through IREPS, shall be governed by the provisions of Information Technology Act,
2001
1.6 E-tender document consists of :

(i) Integrated Bid Document : IBD :
1. Instructions to bidders for e-tendering (IBET)
2. General Conditions of Contracts of Stores department (GCCS)
3. Special Conditions for procurement of M&P Items (SMP)
4. Various formats for use in bidding
5. IRS Conditions of Contract (IRS)
6. Special Conditions for Reverse Auction
Special Conditions of tender (SCT)
(iii) Schedule of requirements (SOR) and attached Documents
1.7 In case of any conflict between IRS conditions of contract, IBD and SCT: Special conditions
of tender (SCT) shall prevail. In case of any difference about the period of Guarantee/Warranty
mentioned between specification and IRS conditions of contract (clause No.3200), the period
mentioned in the specification shall prevail.
1.8 No cost for tender document will be taken for e-tenders and also for manual tenders where the
tender documents are downloaded by bidders from website of ECR/IREPS.
1.9 Only those bids, which are received in electronic mode (i.e. duly uploaded and digitally
signed by bidders on IREPS website) will be considered. Manual bids (sent by post/Fax/email/person)
will not be entertained / considered against e-tenders, even if these are submitted on the letter head of
bidder and are received before closing time of tender. All such manual bids will be considered as
invalid offers and shall be summarily rejected.
1.10 All the mandatory fields of the Techno-commercial offer form and Financial offer form must
be filled-in by the bidder. The various components of price (Basic rate, Taxes & Duties, Packing
charges, Forwarding charges, Freight etc.) should be clearly indicated separately in the respective
field of the Financial offer form. If there are any other charges, their nature should be specified.
Landed rate (i.e. all-inclusive rates on FOR-destination basis) shall be automatically calculated by the
system and shown to the bidder before final submission of bid.
1.11 The unit of rate shall be as indicated in the tender schedule and Bidders are required to quote
in this unit only (i.e. Number, set etc.). Any deviation in this aspect will make the offer liable to be
ignored. The price for indigenous tenders (i.e. other than Global tenders) should be quoted in Indian
Rupees only otherwise the bid will be rejected.
1.12 Bidder should mention discount, if any, at the specified place in the Financial offer form only,
instead of writing anywhere else in the bid or in the attached documents. . Discounts mentioned at any
other place than Rate page of e-bid (Financial offer form) will not be taken for evaluation by system
for assigning inter-se ranking to the bids. Further, conditional discount(s) linked with – Quantity,
Payment, Inspection agency, Delivery place etc. – will not be considered while assigning inter-se
ranking to the bids. However, Purchaser reserves the right to avail any such conditional discount for
placement of contract and/or for counter-offering to the successful bidder(s).

1.13 The rates filled-in by the bidder on Financial offer form will be considered as final. The rates
and other conditions of bid having financial implication mentioned elsewhere in the bid (such as
attached documents or on other pages of e-bids) will not be taken into consideration.
1.14 Bidder can submit a revised bid at any time before the closing date & time of tender and in
such a case, the last revised bid, which is deemed to supersede all the previous bids, shall only be
tabulated by system for assigning inter-se ranking to the bids and the same shall be considered valid
for its evaluation.
1.15 Mode of dispatch preferred by Purchaser is: by Road on FOR-destination basis. Bidders
should quote accordingly and freight charges, if any, should be clearly indicated in Financial offer
form otherwise it will be assumed that the freight charges are zero/Nil or the freight charges will be
borne by bidder/supplier. If a bidder mentions zero freight charges in the rate page and elsewhere in
the bid mentions delivery terms as FOR: station of dispatch, then no freight charges will be payable
and therefore, freight charges will have to be borne by the supplier.
1.16 Purchaser will not pay separately for transit insurance and the contractor will be responsible
till the entire stores contracted for, arrive in good condition at destination. Separate insurance charge
for carriage of material by Rail is not admissible and will not be allowed. Stores should not be insured
at the cost of the purchaser but should be packed for safe transit in accordance with the conditions laid
down in the Coaching/Goods tariff. The supplier may insure consignment at his own cost, if
considered necessary by him.
1.17 Bidder should read the delivery period/schedule given in the tender schedule and quote
accordingly. Vague Delivery terms like: within 2/3 months, 8-16 weeks etc. must be avoided and if
quoted so, the bid will be treated by Purchaser as commercially unresponsive making it liable for
rejection. Earliest guaranteed delivery should be quoted. The bidder should indicate the dates of
commencement and completion of supplies with monthly rate of supply. The penalties for defaults
and delay in supplies will be applicable as per provisions of IRS Conditions of Contract.
1.18 Bidders who download the tender documents from website will ensure that no alteration is
made in their contents.
1.19 The date and time specified in the contract for the delivery of the stores/equipment shall
be the essence of the contract and the delivery must be completed no later than the date so specified.
The attention of the Bidders is invited to clauses under the Conditions of Contract regarding
liquidated damages and general damages by which the contract shall be governed.
1.20 The Vendors in their own interest are advised to visit the www.ireps.gov.in web site
regularly and check for corrigendum if any and submit revised offer wherever warranted. East
Central Railway will not be responsible for failure of the Purchaser to submit revised bids in
such a situation.
1.21 Bidders/Vendors, who are found to be indulging in tampering with tender documents or
trying to hack the IREPS website, will be taken up with legal and administrative action, which could
be as severe as: Removal from the approved list, Banning, Suspension of business dealing etc. The
bidders must note that they will be considered fully responsible for scanned copies of documents
submitted by them under their digital signature and as per. IT Act they will not be allowed to disown
any submissions under the said digital signature.

2. DRAWINGS AND SPECIFICATIONS
2.1 The drawings and specifications as mentioned in the tender schedule are attached with the
tender document but general specifications such as IS, DIN, ASTM etc will have to be arranged by
the bidder on their own and same shall not be provided by purchaser. In some cases where size of file
for drawing/specification is too large to be uploaded on IREPS website, these will be made available
in digitized form (softcopy : CD) which may be obtained from the office of Purchaser.
2.2 Specifications indicated in the "Schedule of Requirements" forms part of bid document and
may be obtained on payment from the following:
i) Indian Standards Specifications from the Director General, Bureau of Indian Standards,
Manak Bhawan, 9, Bahadur Shah Zafar Marg, New Delhi-110001, INDIA.
ii) Indian Railway Specifications, drawings and details from:

The Director General, Research Designs and Standards Organisation, Manak Nagar,
Lucknow-226011, INDIA.
iii) Particular Specifications, drawings and details issued by Production units from the
respective Production Units
3. COMPLIANCE WITH TECHNICAL SPECIFICATION
3.1 The bid should strictly conform to the specified description and drawing/specification in SOR
(Schedule of Requirements) of tender and no samples need be submitted unless so mentioned in
tender document/schedule. The supplier on whom Purchase order (PO) is placed should refrain from
sending advance sample unless required as per conditions of PO and they should make supplies
strictly as per contract. When Pilot/Prototype sample is required to be submitted by suppler for
approval before bulk supply of material, it should also conform to description, drawing/specification
as mentioned in the contract.
3.2 The Bidder shall indicate the compliance, or otherwise against each clause and sub-clause of
the technical specifications. If a bid is submitted by bidder, with their own Drawing No. / Part No /
Specifications, then they should submit technical details (drawings/specification/catalogue etc.) of
their quoted product with the justification about their bid being in conformity with the requirements of
tender Drawing/Specification of the tender. A comparison-chart should be prepared by bidder
themselves and attached with e-bid for proving the equivalence of quoted product with respect to the
drawing/specification of tender. Technical deviation from drawing /specification of the tender, if any,
should be clearly mentioned in the Techno-commercial offer form at the appropriate place (Technical
Deviation Statement) of e-bid.
3.3 For tenders of M & P items (Machinery & Plant): Bidder should give clause-wise
comments and compliance on the technical specification to indicate whether the offered product
(Machine/Equipment) fully meets the tender specifications. The bid should be accompanied with
complete details (technical parameters, drawing/specification etc.) of the offered product.

4. SAMPLE IN TENDER
(applicable only when specified in tender document)
4.1 Bidder must submit 4 (four) number of samples of the size/dimensions prescribed in tender
document duly signed & sealed in envelope with Tender No. and Tender Opening Date super-scribed
on it. The samples should be sent well in advance and must be received physically in the office of the
Purchaser, at least one hour before closing time and date of tender. The offers without sample in such
cases will be treated as incomplete/unresponsive and will be summarily rejected.
4.2 Sample will be submitted by bidder free of cost. After finalization of tender, one sample of
successful bidder will be sent to concerned parties (i.e. Consignee, Supplier and Inspection agency)
along with Purchase Order (PO). An intimation letter will be sent by Purchaser to all the unsuccessful
bidders giving them a time-period of 30 days for collection of their samples failing which these
samples may be destroyed or disposed by Purchaser without any further intimation in this regard.
4.3 Bidders should note that the sample is being asked in this tender for indeterminable
characteristics [such as: General appearance, Lustre, Feel and Finish etc.]. The supply of item shall be
in conformity with sample in such respects only, whereas for the remaining characteristics the
supplies must be in conformity with the tendered specification. Samples submitted by bidder will be
considered as supplemental and not in suppression to any specification mentioned and such samples
will only be considered in relation to those points which are not defined in the specification. The onus
of drawing attention to any particular item in which a bidder wishes his samples to supersede or vary
from the tender description/specification lies on the bidder. In the absence of specific acceptance in
writing to any variation, the purchaser shall be entitled to reject any claim for acceptance of supply
embodying such variation
5. INSPECTION
5.1 Bidders should quote as per inspection clause mentioned in tender document. The place of
inspection will be: at the works of OEM before dispatch of material. The bidders/suppliers are
expected not to offer/seek any deviation from the Inspection clause mentioned in the tender/contract.
5.2 Bidder shall indicate the place of manufacturing of tendered item (or part thereof) and shall
also indicate the place of inspection in the bid itself. The bidder shall also submit documentary
evidence regarding the ownership/tie-up of place where tendered item (or part thereof) is to be
manufactured or will be offered for inspection. The full postal address of place where the item will be
manufactured and it is to be inspected is to be mentioned in the bid. Bid without these details is liable
to be rejected.
5.3 The minimum value limit of Purchase Order [PO] for pre-inspection by RDSO/RITES is Rs.
5 Lakhs. Below this value limit, inspection will normally be done by consignee at his end on receipt
of material, unless specified otherwise in tender/contract.
5.4 For the tender in which there is clause that – “Purchase of the item will be made for ISI
marked products only “, if the order is placed directly on ISI certified manufacturer, then material can
be accepted on firm’s WTC (Works Test Certificate). The bidder/supplier should submit valid BIS
license at time of bidding/supply for such tendered items.

5.5 For imported items, unless otherwise mentioned in tender document, the inspection will be
done by RA/Berlin at the premises of manufacturer prior to dispatch. In exceptional cases, the
material can be accepted against MTC (Manufacturer’s test certificate) and GC (Guarantee
certificate).
6. ELIGIBILITY CRITERIA
6.1 The Eligibility Criteria shall be as prescribed in the Tender Document. The Eligibility Criteria
is governed by instructions issued by Railway Board from time to time. The instruction in force on the
date of opening of the tender shall govern the evaluation of bids.
6.2 Procurement for items having vendors approved by centralized agency:
6.2.1 Ordering on Approved Sources: Railway procure some of the items from approved sources.
The Approving agencies such as RDSO / PUs / CORE etc. publish vendor list, periodically, e.g.,
by RDSO every six months. Granting of Approval is a continuous ongoing activity, therefore vendor
list can undergo changes after opening of tender.
6.2.2 Wherever necessary as per policy of procurement and as indicated in the tender schedule,
Regular Purchase Order(s) for bulk quantity will be normally placed only on vendors approved by
nominated vendor approving agency (RDSO/CLW/DLW/ICF/RCF/MCF/CORE) for the tendered
item. The bidder should attach scanned copy of approval letter along with their bid.
6.2.3 The approval status of the firm shall be reckoned as on the date of tender opening and
not thereafter. But in case of downgrading /removal / suspension / banning etc after opening of
the Tender, such changes will be taken into account while deciding tenders. This however does
not apply for placing small quantity contracts on new sources, as their capacity & capability will only
be ascertained before placement of developmental order.
6.2.4 Wherever there is a restriction policy to procure the item from approved sources, the same
will be followed as under:
6.2.5 It may specifically be noted that approval of a vendor only signifies its technical capability to
supply the items for which it has been approved / registered and it is quite likely that such vendors
differ in terms of capacity, past performance etc. The quantity to be ordered on approved sources,
therefore, will be decided duly considering factors such as past performance, capacity, delivery
requirements, quantity under procurement, nature of items and outstanding order load etc.
and the tender conditions in fair transparent and equitable manner.
6.2.6 Wherever necessary, as per policy of procurement, bulk purchase will be made only from
those firms who have been approved by RDSO / Productions Units / CORE etc. Vendors participating
in tender shall have such approvals before opening of tender for the items tendered to manufacture
and supply the same. The tenderers should attach scanned copies of such approval letters and
approved QAP, along with their e-offers.
6.2.7 Minimum 80% of the net procurement quantity (NPQ) shall be ordered on “Approved
Vendors”.
6.2.8 It is clarified that approved and registered are one and same for the items approved by the
nodal agencies such as RDSO / PUs / CORE etc.

6.2.9 Ordering on new / developmental sources :
(a) If the tenderer is not approved by RDSO/PUs/CORE, then they must submit their credentials
details i.e Machinery and Plant, Testing Facilities, QAP, Technical Manpower etc. to evaluate
their capacity cum capability. Failure to furnish requisite credentials details will make their offer
liable to be ignored.
(b) When the vendor approving / registering agency grades vendors only as registered /
approved vendors: The Developmental order can be given upto 20% of the NPQ on unregistered
/ untried tenderers about whom Railway is prima facie satisfied that they are capable of executing
the order. This 20% quantity will be within the NPQ. However, there may be some cases of
procurement of materials where Railways may not be willing to undertake the risk of the failure
on the part of the supplier on whom the developmental orders have been placed. In such cases,
Railway may go in for increased purchase quantity in consultation with Finance and keeping in
view budgetary and other aspects so that 100 percent order could be placed on registered /
approved suppliers and quantity not more than 20% of NPQ could be placed as a developmental
order outside the NPQ
(c) Where there are not more than three Indian Suppliers (*) categorized as Approved Vendor
for a particular item, developmental vendors can be considered for placement of bulk order
without any quantity restrictions. However, while considering such vendors, factors including
past performance, capacity, delivery requirements, quantity under procurement, nature of item,
outstanding order load, etc. shall be considered in a transparent manner, subject to rates being
reasonable. Quantity allocation among eligible vendors shall be based on pre-decided tender
criteria. Such orders shall be treated as regular/bulk orders
* A bidder shall be considered as Indian supplier if :
i) The entity is incorporated in India OR

ii) A majority of its shareholding or effective control of the entity is exercised
from India OR
iii) More than 50% of the value of the item being supplied / quoted has been
added in India.
(d) Order on Developmental Vendors (DV) shall be developmental orders and shall not amount to
splitting. DV will be eligible for developmental order of maximum 20 % of NPQ in regular
tenders. Total quantity on such developmental vendors/sources put together shall be limited to 20
% of NPQ in regular tenders.
6.2.10 Capability-cum-capacity assessment of vendor may be carried out by : ECR or Vendor

approving agency of tendered item or any other agency nominated by Purchaser: before placement of
developmental orders.
6.2.11 Where the tender conditions stipulate for bulk ordering on approved sources only but there is
no approved vendor (regular or developmental vendor) for that item in vendor list/directory on the

date of tender closing, purchaser reserves the right for placement of order on other (unapproved)
bidders without any quantity restrictions,
6.3 Acceptance of Offers from unregistered and untried tenderers through advertised
tenders: Where the tendered item is not covered by restrictive procurement policy from approved
sources, the following policy shall apply:
6.3.1 Purchaser reserves the right to make bulk procurement from the bidders who qualify the
eligibility criteria mentioned in tender document Unless otherwise specifically mentioned in the
eligibility criteria in tender :
Regular and Bulk quantity orders will be placed only on the bidders (Original manufacturers
or their authorized dealers/agents) and who have proven satisfactory past performance (both
qualitative and quantitative) for supply of the same (i.e. tendered item) or similar item (if
applicable and as defined in tender document) to ECR or any other unit of Indian Railways in
the last three calendar years. The bidder should submit documentary evidence (copies of PO,
Inspection certificates, Receipt Mote etc.) towards such past performance along with offer,
falling which it shall be presumed that the bidder has no past performance.
6.3.2 Developmental orders may be placed on other bidders whose offers are competitive and who
have submitted adequate evidence towards their capacity-cum-capability and prima facie the Railways
are satisfied that they are capable of executing the orders but whose capacity to supply bulk quantity
has not been established in the past. Such bidders should submit documentary evidence (Performance
statement, List of machinery & Plant, ISO certificate, Quality assurance system etc.) alongwith the
bid so as to prove their credentials. If considered, the technical capability and financial capacity of the
bidder can be assessed by ECR or any other agency nominated by purchaser, before placement of
developmental order.
6.4 At least 80 percent of the procurable quantity will be covered invariably on the registered /
approved suppliers. The balance quantity up to 20 percent could be covered on the unregistered
vendors, whose capacity could not be tried by an educational order earlier but whose offers are
competitive and prima facie the Railway is satisfied that they are capable of executing the order.
6.5 There may also be some cases where the Administration may consider after due verification
that the new supplier who has quoted competitive rate is having the required capacity- cum- capability
and in those cases the Railway Administration may place bulk orders on these suppliers straightaway.
7. EFFECTS AND VALIDITY OF BIDS
7.1 Unless otherwise specified, the bids should be kept open valid for the following time-period:
Type of tender Period after closing date of tender
Limited & Single 90 days
Open, Global and M& P 120 days
7.2 The bid having validity less than that stipulated in tender (to be reckoned from closing date of
tender) shall be considered as commercially unresponsive and is liable to be rejected.

7.3 The bidder must fill in the Techno-commercial offer form (consisting of: Eligibility criteria,
Terms & Conditions, Performance statement, Deviation statements, Check-list & Special conditions
etc.), Financial offer form and attach the scanned copies of following documents:
(i) Tender specific authorization letter from OEM (Original Manufacturer) in case of bidder
being an agent/dealer
(ii) Performance statement for supplies made against Purchase Orders placed by ECR or any
other unit of Indian Railways for supply of same/similar item in last 3 calendar years,
with relevant supporting documents (Purchase Orders, Inspection certificates, Receipt
Notes, User-feedback etc.) : as per format given in this bid document.
(iii) Details of M & P (Machinery and Plant), Testing facilities, QAP (Quality assurance
Plan) and technical manpower available.: as per format given in Format :F-4.5 of this
bid document.
(iv) Letter of latest approval from concerned approval agency of tendered item, if applicable
in tender.
(v) Commercial documents such as GSTIN registration, UAM (Udyog Aadhaar
Memorandum ) number & registration certificate
(vi) Current and Valid Registration certificates of Indian Railways/NSIC indicating trade
groups and monetary limit.
(vii) Certificate of registration as MSE for tendered item from the organizations (mentioned in
clause 1.24.2) indicating : Type (Micro or Small) , Category of ownership
(SC/ST/Women/others) and Validity of registration.
(viii) Bidder’s own Drawing/Specification, Product catalogue and Technical data- sheet
of their quoted item and in case of deviation/alternative design comparison-chart for
proving equivalence of quoted product with respect to the drawing/specification of
tender.
( ix) Any other relevant document (s) to establish the credentials of the bidder regarding
technical capability and financial capacity to manufacture & supply the tendered item to
Purchaser.
7.4 Bidder is advised to ensure that address furnished by him for getting DSC(Digital Signature
Certificate) from accredited agencies, is same as that furnished to the Purchaser and available with the
centralized source/vendor approving agency such as RDSO/CLW/DLW/ICF/RCF. They are further
advised that while registering themselves on IREPS website for participation in E-tenders, the same
address is entered to avoid any vitiation of information and its consequent effect on the contract.
8. PROCUREMENT FROM MANUFACTURER’S AUTHORIZED

AGENT/DEALER/DISTRIBUTOR
8.1 Only original manufacturer (OEM) or his authorized agent/dealer/distributor is permitted to

bid in tender. In case bidder is an agent/dealer/distributor of OEM, they should attach tender specific
authorization from OEM with its name and address failing which their bid is liable to be ignored.
Post-tender authorization certificate (issued after tender closing date) will not be accepted.
8.2 Neither one agent/dealer can represent two (or more) OEMs nor one OEM can authorize more
than one agent/dealer. Purchaser reserves the right to reject both bids in such cases. Further there

should not be subletting/sub-contracting by authorized dealer/agent to third party and any such bid
from other than authorized dealer (initially/originally authorized by OEM) will be summarily rejected.
8.3 Where a manufacturer appoints an agent/dealer/distributor on the basis of a written agreement

with him for a specific territory or specific set of items, they shall give an undertaking to the
following effect.
i. Pre-inspection, if applicable, will be done by RITES/RDSO (or any other Inspecting
agency mentioned in contract) at the premises of the OEM. Inspecting agency shall
categorically confirm in the Inspection Certificate, that inspection of the material has been
actually made at the manufacturing premises of the OEM and not in the
Warehouse/Godown/Shop of the agent/dealer/distributor.
ii. Direct dispatch of material from the premises of the manufacturer to the consignee
after issue of inspection certificate, without routing it though agent/dealer/distributor to
ensure genuineness/quality of the supplied product.
iii. Submission of OEM’s TC/GC (Test and Guarantee Certificate) with each lot of
supply.
iv. Price of the authorized agent/dealer/distributor will not exceed to what the OEM
would have quoted.
v. OEM should confirm that no company/firm/individual other than M/s. ………(Name
of the Bidder) is authorized to represent them against this specific tender and OEM shall take
full responsibility for supplies made by bidder including warranty obligation as per contract.
8.4 The bidder should give the particulars (such as Name, Full address, Telephone No. Email etc)
of their local/liaison agents, if any, in the e-bid itself.
8.5 The bid without above information (clauses 8.3 to 8.4) is liable to be rejected.
8.7 For items of category: COTS (Commercially off-the shelf: Retail and market-grade low value
items), the clause from 8.1 to 8.7 shall not be applicable and the following conditions will be
applicable for tenders of such items, in lieu of these clauses:
(i) The bidder should mention: Name of OEM, Brand of offered product and its MRP
(Maximum Retail Price) in the bid alongwith copy of wrapper/packing, if feasible.
(ii) The supply should be made in original packing with clear indication of Make/Brand,
Name of manufacturer, MRP and Expiry date on it.
(iii) The supplier will submit MTC/GC (Manufacturer’s Test Certificate and Guarantee
Certificate) alongwith supply of material.
iv) The supplier shall furnish an undertaking that : “The item supplied by me/us is
original and genuine. If the supply is found spurious at any stage during its use, I/we will
replace the full unused quantity with new stock.”
9. PURCHASE PREFERENCE TO MSE, STARTUPs AND MAKE IN INDIA
9.1 The purchaser deserves the option to give a purchase/price preference to the offers from
Public sector units and or from small scale/cottage Industries Units, over those from other bidders, in

accordance with the policies of the government declared from time-to time and as applicable on
tender closing date. The price preference above However, cannot be taken for granted and every
endeavor need be made by such privileged bidders to bring down cost achieve competitiveness.
9.2 Bidders of MSE category:
9.2.1 MSEs who are interested to avail the benefits : such as - Exemption from payment of EMD
and Purchase preference, must submit with their bid should enclose the proof of their
company/organization being registered for tendered item/trade group, on the date of opening of
tender, with any of the following agencies :
(i) District Industries Centers (DIC)
(ii) Khadi and Village Industries Commission (KVIC)
(iii) Khadi and Village Industries Board (KVIB)
(iv) Coir Board
(v) National Small Industries Corporation (NSIC)
(vi) Directorate of Handicraft and Handloom
(vii) Any other body specified by Ministry of MSME.
9.2.2 All MSEs who are having Udyog Aadhar Memorandum (UAM) will be given all benefits
under Public Procurement Policy for MSEs Order – 2012.
9.2.3 MSEs, have to declare their UAM number on Central Public Procurement Portal (CPPP),
failing which such bidders will not be able to enjoy the benefits as per Public Procurement Policy for
MSEs Order – 2012, for tenders invited electronically through CPPP.
9.3 While considering orders on vendors of Start-ups (whether of MSE category or otherwise),
the criterion of prior turnover and prior experience will stand relaxed, subject to their bid meeting the
requirements of quality and technical specifications of the tendered item. However, this relaxation
will not apply for special circumstances (like procurement of item related to Public safety, Health,
Critical security operations & equipments etc.).
9.4 Make in India Policy:
9.4.1 The provisions regarding Public Procurement (Preference to Make in India) Order-2017
as contained in Railway Board’s letter No. 2015/RS (G)/779/5 dated 26.06.2018 revised vide letter
No. 2015/RS (G)/779/5(Vol. I) dated 26.08.2019, and as revised on the date of tender opening will
be applicable. In case of any conflict between IRS conditions of contract, other conditions/clauses of
IBD and the above-mentioned letters, the provisions of the latest letters of Railway Board as
applicable on the date of tender opening, shall prevail. Unless otherwise mentioned in schedule of
tender, the following conditions will be applicable.
9.4.2 Minimum local content (MLC) shall ordinarily be 50% unless otherwise indicated in the
specification/tender schedule.
9.4.3 Margin of Purchase Preference (MPP) will be 20 %.
9.4.4 Verification of local content

(a) The bidder must quote percentage of local content in the appropriate/relevant column of e-bid
(Please enter 0 for fully imported items and 100 for fully indigenous items) for their quoted
product. The local supplier at the time of tender, bidding or solicitation shall be required to

provide self-certification that the item offered meets the minimum local content and shall give
details of the location (s) at which the local value addition is made.
(b) In case of procurement for a value in excess of Rs.10 Crores, the local supplier shall be
required to provide a certificate from the statutory auditor or cost auditor of the company (in
the case of companies) or from a practicing cost accountant or practicing chartered accountant
(in respect of suppliers other than companies) giving the percentage of local content.
(c) False declarations will be in breach of the code of integrity under Rule 175(1)(i)(h) of the
GFR-2017(General Financial Rules) for which a bidder or its successors can be debarred for a
period up to two years as per Rule 151 (iii) of the GFR-2017 alongwith such other actions as
may be permissible under law.
(d) A supplier who has been debarred by any procuring entity for violation of this Order shall not
be eligible for preference under this order for procurement by any other procuring entity for
the duration of the debarment. The debarment for such procuring entities shall take effect
prospectively from the on which it comes to the notice of other procurement agencies, in a
manner prescribed under the Policy.
9.4.5 Requirements of Purchase Preference
(a) In procurement of all goods, services or works in respect of which the estimated value of the
procurement is less than INR 50 Lakhs, only local suppliers shall be eligible to bid. However,
in procurement of all goods, services or works, in respect of which the Nodal
Ministry/Department has communicated that there is sufficient local capacity and local
competition, only local suppliers shall be eligible to bid irrespective of purchase value.
Provided, that for any particular item, the Nodal Ministry/ Department may also prescribe an
upper threshold limit, below which procurement shall be made only from local suppliers.
Further, provided that in any particular case of procurement, if the procuring authority (the
purchaser) is of the view that the goods, services or works of required quality/ specifications
etc., may not be available in the country or sufficient capacity or competition does not exist
domestically, and it is necessary to undertake global competitive bidding, the procuring
authority may allow the same. In such cases, the provisions of sub-clause (b) or (c) as the case
may be, shall apply.
(b) In the procurements of goods and services which are not covered by sub-clause (a): and which
are divisible in nature, the following procedure shall be followed:-
(i) Among all qualified bids, the lowest bid will be termed as L1. If L1 is from a local
supplier, the contract for the full quantity will be awarded to L1.
(ii) If the L1 bid is not from a local supplier, 50% of the order quantity shall be awarded to
L1. Thereafter, the lowest bidder among the local suppliers will be invited to match the
L1 price for the remaining 50% quantity, subject to the local supplier’s quoted price
falling within the margin of purchase preference and contract for that quantity shall be
awarded to such local supplier subject to matching the L1 price. In case such lowest
eligible local supplier fails to match the L1 price, or, accepts less than the offered
quantity, the next higher local supplier within the margin of purchase preference shall be
invited to match the L1 price for remaining quantity and so on, and contract shall be

awarded accordingly. In case some quantity is still left uncovered on local suppliers, then
such balance quantity may also be ordered on the L1 bidder.
(c) In procurements of goods and services not covered by sub-clause (a) and which are not
divisible, and in procurement of services where the bid is evaluated on price alone, the
following procedure shall be followed:
(i) Among all qualified bids, the lowest bid will be termed as L1. If L1 is from a local
supplier, the contract will be awarded to L1.
(ii) If L1 is not from a local supplier, the lowest bidder among the local suppliers will be
invited to match the L1 price subject to local supplier’s quoted price falling within the
margin of purchase preference, and the contract shall be awarded to such local supplier
subject to matching the L1 price.
(iii) In case such lowest eligible local supplier fails to match the L1 price, the local supplier
with the next higher bid within the margin of purchase preference shall be invited to
match the L1 price and so on and contract shall be awarded accordingly. In case none of
the local suppliers within the margin of purchase preference matches the L1 price, then
the contract may awarded to the L1 bidder.
9.4.6 The tenders having estimated value less than Rs.5 Lakhs shall be exempted from this policy
(Purchase preference to Make in India).
9.4.7 Purchase preference for IT & Electronics products under ‘ Make in India ‘ policy will be
governed as per as per Railway Board’s 2011/RS (G)/779/9 dated 06.12.2017, as updated on the date
of opening of the tender and that for Medical devices will be governed as per as per Railway Board’s
2015/RS(G)/779/5 dated 13.06.2018 and 01.11.2018, as updated on the date of opening of the
tender.
9.4.8 If a bidder wants to avail preference under this policy (Make in India), they should submit
necessary & relevant documents in support of their claim alongwith its e-bid and no such document
will be accepted after opening of tender. The onus for furnishing correct information regarding Local
content etc and proving the same will shall be on the bidder.
9.4.9 Fee for filing a complaint under Public Procurement Order-2017 (Preference to Make in
India) shall be Rs.10000 per case. The complaint shall be filed in the office of the PCMM/ECR
Hajipur. The fee shall be deposited with the office of the PFA/ECR-Hajipur.
10. OPENING OF TENDER
10.1 Electronic tender boxes will be opened only after closing time of tender. No bidder is required
to be present in the office of Purchaser for tender opening of e- tender. They can see their own bid and
financial tabulation statement (in case of advertised tenders: Open and Global) from their log-in on
the website of IREPS.

10.2 Normally the tenders will be opened on same date after closing time of tender, but sometimes
due to unavoidable reasons (such as Holiday, Poor internet connectivity, Breakdown or maintenance
of server etc.) the tenders will be opened on the next working date, when the IREPS servers/
connectivity are/is working. There is no scope of any late or delayed bid in e-tender.
11. EARNEST MONEY DEPOSIT
11.1 Earnest Money Deposit (EMD) shall be mentioned in all tenders, irrespective of the nature of
the tender as per EMD amount as per clause 11.3 below or as decided by the Purchaser. There shall be
no exemption from submission of EMD for any tender or by any tenderer, subject to provisions
under clause 11.4 below, except for the following:
(a)
(i) EMD shall normally not be called against limited tenders with estimated value upto
Rs 25 lakhs (including single tenders, global limited tenders).
(ii) If considered necessary, Purchaser may call for EMD even in such limited tender.
(b) Micro and Small Enterprises (MSEs) registered for the tendererd item in terms of Clause
9.2.1.
(c) Other Railways and Government Departments
(d) Indian Ordnance Factories
(e) PSU (Public Sector Undertakings) owned by Ministry of Railways and PSUs for the group of
items that are manufactured by them
(f) Vendors registered with railways for the trade group of the item tendered.
(g) Vendors appearing on the approved vendor lists of RDSO/Pus/CORE, subject to approval
status being valid on the date of tender opening.
(h) Vendors registered with Railways for Supply of medicine, medical equipments and
consumables shall be exempted from submission of EMD for these items.
(i) In tenders issued against PAC, OEM in whose favour PAC has been issued shall be exempted
from submitting EMD. KVIC and ACASH shall be exempted from submitting EMD for items
supplied by them.
(j) Tenders in which Competent Authority has decided prior to issue of tender to exempt from
EMD, which will be declared in the Tender Documents.
11.2 Offers submitted without EMD shall be summarily rejected. Bidders seeking exemption
from payment of EMD should submit documentary evidence in support of their claim through
the relevant link in IREPS, along with declaration in Annexure A.
11.3 EMD Amount: The EMD amount shall be as declared in the Tender Documents.
11.4 For Bidders exempted from submitting EMD:
(i) All vendors exempted from submitting EMD, as per clause 11.1 above, irrespective
of the type of tender, i.e, single, limited or open, shall be required to sign a bid

securing declaration as per Annexure A to this Bid Document.
(ii) There shall be no exemption to such bidders from submitting EMD and SD (security
Deposit) for all tenders published during the period of time they are so disqualified, as per
declaration signed by them.
(iii) Authority competent to approve the disqualification shall be the tender accepting
authority not below the level of SAG, including SAG Officers in the field units, namely
CMM, ADRM, CWM, CAO, CPM, subject to PHOD/CHOD having full powers to
approve disqualification.
(iv) The disqualification procedure and all correspondence thereof shall be online and digital
and updation on IREPS shall be done.
(v) This clause shall not be applicable for Government Departments / Ordnance factories /
other Railways / Railway PSUs / KVIC / ACASH.
11.5 EMD shall be refunded when any of the following conditions is satisfied:-
(a) After finalization of tender, the bidder is an unsuccessful bidder.
(b) Validity of offer expires and validity extension is not sought.
(c) Validity of offer expires and bidder refuses to extend the validity of the offer.
(d) After finalization of the tender , the successful bidder submits the required Security Deposit.
No interest will be payable by the Purchaser on the Earnest Money Deposit.
11.6 EMD of bidders or tenderers shall be released immediately after it is due for release as per the
above criteria. The release of EMD will be through IREPS, as per Bank Details submitted by the
tenderer. Railway Administration shall not be responsible for delay or non-return of EMD, due
to incorrect information entered by the tenderer.
11.7 The EMD is liable to be forfeited if the Tenderer withdraws, amends, impairs or derogates
from the tender in any respect within the period of validity of his offer.
12. SECURITY DEPOSIT
12.1 Security Deposit (SD)/Performance Security for Stores Contracts except M&P:
12.1.1 There shall be no exemption from submission of Security Deposit for any tender or by
any tenderer except for the following:
(a) The store contract cases of value upto Rs. 25 lakh.
(b) Other Railways and Government departments.

(c) Indian Ordinance factories.
(d) PSUs owned by Ministry of Railways and PSUs for the group of items that are manufactured
by them.
(e) In tenders issued against PAC, OEM in whose favour PAC has been issued shall be exempted
from submitting SD. KVIC and ACASH shall be exempted from SD for items supplied by
them.
(f) Vendors registered with Railways for the trade group of the item tendered shall be exempted
from SD for orders valued upto their monetory limit of registration.
(g) Vendors appearing on the approved vendor lists of RDSO/PUs/CORE, subject to approval
status being valid on the date of tender closing.
(h) Vendors registered with Railways for supply of medicine, medical equipments and
consumables shall be exempted from submission from SD for these items.
(i) Tenders in which Competent Authority has decided prior to issue of tender to exempt from
SD, which will be declared in the Tender Documents.
Note: Apart from claiming damages from vendors, in case of failure to comply with the
contractual obligations, Railways shall record poor performance of the vendors for taking
suitable penal action as per extant instructions. (ii) Other Railways and Government
Departments.
12.1.2 Amount of SD: The Security Deposit shall be as per the following:
(i) For contract value above Rs 25 lakh and upto Rs 50 crore - 5% of contract value rounded off
to the nearest higher Rs 10 (ten), subject to maximum of Rs 50 lakh
(ii) For contract value above Rs 50 crore – Rs 1 crore. A higher SD, subject to a upper ceiling
upto 10%, may fixed by Railways, which will be declared in the Tender Documents.
12.1.3 Time for Deposit of Security Deposit: SD from successful bidder should be received in
Purchase Office, within 21 days from the date of communication of acceptance with respect to the
Purchaser.
12.1.4 Condonation of Delay in submission of SD: In special circumstances, Competent Authority

shall have power to condone the delay in submission of SD. For this the Tenderer, who delays the
submission of SD shall submit an application for condonation of delay. This application should
state the reasons for delay in submission of SD. The submission of application does not entitle
the tenderer to condonation of delay in submission of SD. The condonation shall be decided by
the Competent Authority on case-by-case basis, strictly on the merits of the case.
12.1.5 Validity of SD: Security Deposit should remain valid for a period of 60 days beyond the date
of completion of all contractual obligations. It shall be the responsibility of the tenderer/contractor to
extend the validity of the instrument of Security Deposit, if the date of Completion is extended. If the
tenderer/contractor to do so within reasonable time, the Railway Administration will encash the
instrument without any reference to the tenderer/contractor.

12.1.6 Failure to Submit SD: In the event of successful tenderer(s) failing to deposit/submit SD in
acceptable form within the prescribed period as aforesaid, the EMD submitted by such successful
tenderer(s) shall be automatically adjusted towards SD. In case where available EMD is less than the
required SD and the successful tenderer does not deposit balance SD amount within the stipulated
time, then EMD shall be forfeited and the case will be dealt as that of withdrawl of offer by the
tenderer as per extant instructions.
12.1.7 Failure of Contractor: Wherever Security Deposit has been exempted, for any reason,
and the supplier/contractor fails to supply goods as per conditions of Contract, as amended
from time to time, the Purchaser shall have the right to levy damages from the supplier for
failing to comply with the contractual conditions, not by way of penalty, an amount equal to the
SD amount, as would have applicable if the contract was with a non-exempted vendor. These
damages shall be treated as recoveries outstanding against the supplier/contractor and dealt
with accordingly.
12.1.8 In case of Contractor to fails to meet delivery schedule for any lot in a severable
contract, Railway Administration may cancel the contract for defaulted part by forfeiting SD
commensurate to that lot.
12.1.9 Forms of Submission of SD: The Security money can be deposited in any of the following
forms:
(i) Online payment through payment gateway on IREPS

(ii) Demand draft of any nationalized bank
(iii) FDR/TDR (Fixed/Term Deposit Receipt) or Bank Guarantee (BG) from any of
the Nationalized/scheduled Bank in format given in Annexure C
(v) National Saving Certificate
(vi) Any other form permitted by Railway Board
12.1.10 The Risk Purchase clause in IRS Conditions of Contract shall not be applicable.
12.1.11 The relevant clauses in IRS Conditions of Contract stand modified to the extent mentioned in
the above paragraphs.
12.2 Security Deposit (SD)/Performance Security for Stores Contracts for M&P items:
12.2.1 The Security Deposit for Supply of M&P shall be governed by Special Conditions for M&P
items
12.3 Return of Security Deposit:
12.3.1 The Security deposit will be refunded to the contractor on due fulfillment and satisfactory
completion of the contract within a reasonable time and on submission of a Clearance Certificate, (in
the format of Annexure B) by the Contractor to the effect that the Contractor has received all dues
arising out of this contract and that he has no claim whatsoever on the President of India, against the
contract.

13. COMPLIANCE WITH TAXATION LAW
13.1 All the bidders should ensure that they are GST compliant and their quoted tax structure/rates
are as per GST law. The bidder should give the break-up of quoted rate : Basic , Packing &
Forwarding, Freight etc. in their bid alongwith justification for quoted rate of GST and HSN code.
The bidder should consider the benefits of ITC: Input Tax Credit : availed or likely to be availed by
them , while quoting the rate.
13.2 In case the successful bidder is not liable to be registered under CGST/IGST/UTGST/SGST
acts, the Railway (Purchaser) shall deduct the applicable GST from his/their bills under Reverse
Charge Mechanism (RCM) and deposit the same to the concerned tax authority.
13.3 For the tender in which the special clause: The tendered item pertains to Rail Locomotive
Part/component category (Chapter 86) and it is needed by Purchaser (Indian Railways) for their own
end use (i.e. not for outside sale) : is mentioned, the bidder should quote rate of GST duly taking into
consideration this aspect. For tenders of other items, the bidder should indicate GST classification of
tendered goods/services, in support of their quoted rate of GST. The onus for any misclassification
will lie with the bidder and no correspondence in this regard will be entertained after closing date of
tender.
13.4 The bid shall be evaluated based on the GST rate as quoted by each bidder and the
same will be used for determining inter-se ranking. While submitting bid, it shall be the
responsibility of the bidder to ensure that they quote correct GST rate and HSN/SAC.
Purchaser shall not be responsible for any misclassification of HSN/SAC or incorrect GST rate,
if quoted by the bidder.
13.5 Wherever the successful bidder invoices the goods/services at GST rate or HSN/SAC which
is different from that incorporated in the Purchase order (PO), payment shall be made as per GST rate
which is lower of the GST rate incorporated in PO or billed. The supplier will be required to adjust his
basic price to the extent required by higher tax billed as per invoice to match the all-inclusive price as
mentioned in PO.
13.6 Any amendment to GST rate or HSN/SAC in the contract shall be as per the contractual
conditions and statutory amendments in the quoted GST rate and HSN/SAC, under SVC (Statutory
Variation Clause).
13.7 If the supplier does not deposit the tax taken/charged from the Purchaser (ECR) on account of
GST, to the GST authorities as per time-schedule given in GST act and MOR (Ministry of Railways)
is unable to claim input tax credit (ITC) due to this failure on part of supplier then the Purchaser will
have a right to recover the equivalent amount of paid tax (alongwith interest) from any pending bills
of supplier.
13.8 Bidder should provide the following details in e-bid itself: GSTIN (copy of certificate to be
attached), full address of place from where supply would be made, email and mobile number in their
bid. Unregistered vendor is also required to provide all the other details (except GSTIN) alongwith its
annual turnover of last three financial years.
13.9 All the bills and invoices (for transactions of goods and services) submitted by supplier shall
contain the information as required by the relevant law and rules of GST.

13.10 The relevant GST, will be deducted from payment made or credited to the supplier of taxable
good or services or both where the contract value is more than the threshold limit prescribed in the
GST Act.
13.11 The firm/supplier shall comply with the following for supplies effected against the contract :
(i) Submit the invoice /bill clearly indicating the appropriate HSN code and applicable
GST rate thereon duly supported with documentary evidence.
(ii) Give a declaration that any additional input tax credit benefit, if becomes available to
supplier, the same shall be passed on to the purchaser without any undue delay.
13.12 GST will be paid on production of documentary proof. Therefore, the supplier should
comply the following while submitting their bill of payment:
(i) The rate of GST at present legally leviable in this case is .......% as assessed by the
concerned authority. Certified that the GST charged on this bill is not more than this rate
(ii) Certified that the amount of Rs. Claimed as GST in this bill is in accordance with the
provision of the rules in all respects and the same has been actually paid to the authorities
concerned in respect of the stores covered by the bills.
(iii) It is hereby declared that all input credits has been passed on to Purchaser and Indian
Railways while submitting the bills. We further agree to pass on such additional taxes& duties
and set off as may become available in future in respect of all the inputs used for the
manufacture of the final product, on the date of supply , by way of reduction in price and
advise the purchaser accordingly.
13.13 Purchaser will not bear any Octroi charges and if required by supplier they will issue Octroi
Exemption Certificate (OEC) only. If OEC is not considered or accepted by the concerned authorities
and they insist on the supplier for payment of Octroi charges, then the supplier will have to bear the
same.
13.14 No claim for any additional tax/duty, which was applicable, but not stipulated in the bid shall
be admitted at any stage of tender/contract on any ground whatsoever.
14. PRICES
14.1 Railways, in general, prefer firm price contracts. In tenders where no PVC is mentioned in the
tender schedule, bidders must quote on fixed price basis only. Bids with PVC or ambiguous
conditions like “Price Variation Clause applicable” in such tenders will not be acceptable and will be
summarily rejected.
14.2 Price Variation Clause (PVC):
14.2.1 .However, there may be cases of procurement of stores, which are raw-material (Steel/
NonFerrous) intensive, wherein the tender schedule itself will indicate Price Variation clause along
with the PVC formula, generally based on following Price Variation Clauses:-
a) IEEMA PVC for the items covered by IEEMA formula.

b) Railway Board’s/CORE’s PVC for items covered by such formula.

c) DGS&D’s PVC for the items which are covered by such formula etc.
d) PVC based on prices of HCL, HZL, SAIL, LME, BME etc.
e) PVC based on WPI
f) For those items, which are not covered by any of the aforesaid PVC, other PVC specific for
such stores (e.g. Import items subject to variation in CD/FE) may be considered , if found to
be in order.
14.2.2 Wherever PVC (with formula, base date and source of base-price/indices) is mentioned in the
tender schedule itself, the bid should be submitted with same PVC. Bids with deviation in PVC
formula and/or Base date of indices will be summarily rejected. Bids with fixed price in such
tenders will also be summarily rejected.
14.2.3 Bidders who quote with price escalation on account of raw material in the tenders should note
that such escalation claims will be subject to verification of documents by the Bill passing/paying
officer and the relevant records may be asked from them. If the tenderer fails to establish his claim by
producing unsatisfactory records before the FA & CAO of this Railway, their claim will be
disallowed and/ or proportionately reduced.
14.2.4 In case of entire or severable contract, with staggered delivery schedule, the PVC claims if
any, will be restricted for that particular quantity of supply required to be completed in that period, as
indicated in the original delivery schedule, irrespective of the fact, whether the supply has been
made/completed subsequently, within the overall delivery schedule of the contract.
14.3 Statutory variation clause (SVC):
14.3.1 If there is any change in structure/rates of statuary taxes & duties, all the bids shall be
evaluated as per tax regime as applicable on the date of tender opening.
14.3.2 Statutory variation in taxes and duties will be applicable during

the original/re-fixed delivery period of contract subject to denial clause.
15. EVALUATION OF BIDS
15.1 The tenders received will be evaluated by the Purchaser to ascertain the best and lowest
acceptable tender in the interest of the purchaser, as specified in the specifications and tender
documents.
15.2 Evaluation criteria not mentioned herein but mentioned specifically in the tender schedule or
technical specification will be taken into consideration in the evaluation of offers.
15.3 Unless otherwise specified, the evaluation of tender will be done item-wise and consignee-
wise. All offers will be arranged in the ascending order of the landed price / all-inclusive rate.
15.3.1 In tenders where schedule of requirement consists of multiple items (i.e. more than one item),
the inter-se ranking will be decided for each item separately. Therefore, the bidder is required to quote
the rate for each item of tender. This is also necessary for judging reasonableness of rates by
purchaser and payment of part supplies, if allowed in the contract.
15.3.2 In tenders where several items are grouped in a “Kit/Set” and the tendered quantity is in sets,
the firm should quote single rate for the tendered Kit/Set of items. In such cases, the inter-se ranking
shall be decided on the rate quoted by the firm for complete Kit/Set.

15.3.3 For multi consignee items, the rate should be quoted by firm on FOR Destination basis for
each consignee separately. The inter-se ranking of the offers will be decided for each consignee
separately.
15.4 Conditional discounts, such as, discounts for quality, early payment, delivery at other than
specified location, etc., will not be considered for the purpose of determining inter-se ranking of the
offers. That is, the rates quoted without any conditions attached, such as, discounts not linked to
quantity, early payment, etc., will only be considered for the evaluation purpose. Purchaser however,
reserves the right to use any of the discounted rates(s) appropriate for acceptance or to counter offer to
the successful tender(s).
15.5 Bids received with PVC shall be updated to a common base date/price for the purpose of their
evaluation and inter-se ranking.
15.6 Revised bids: Vendors can submit a revised commercial offer (“Financial Rate Page for
Supply”) anytime before the stipulated closing date and time of the tender and in such case the last
revised offer submitted at a later time and date shall be considered as the offer, superceeding all the
previously submitted offers for that item/items of the tender.
15.7 Alternate Bids: The application (i.e. IREPS website) provides for the possibility of
submission of alternate bid. This option is provided for vendor to quote for different make, alternate
specification or slab discount, etc.
15.8 To assist the examination, evaluation and comparison of bids, Purchaser may, at its discretion,
ask the bidder for clarification of its bid. The request for clarification and the response thereto shall be
in writing and no change in price or substance of the bid shall be sought/offered or permitted.
15.9 Purchaser may waive off any minor infirmity or non-conformity or irregularity in a bid
provided such waiver does not prejudice or affect the relative ranking of any bidder. Purchaser,
however, reserves the right to accept or reject these deviations and its decision thereon shall be final
and binding.
15.10 The tenderers should note that tender quantity is only approximate and subject to
variation at the time of actual finalisation of the tender. Moreover, as per the terms and conditions of
the tender, the purchaser also reserves the right to accept the offer for the full quantity or part thereof
tendered.
15.11 The Purchaser will examine the bids to determine whether they are responsive i.e.: -
(a) These are complete,

(b) Earnest Money is in the requisite form and validity period is available,
(c) The validity of the bid is as per the Bid Document,
(d) “Deviation Statement” or “Nil Deviation Undertaking” has been submitted
(e) Condition stipulated against in any clause/sub-clause of IRS Conditions of Contract, and its
associated annexures,
(f) Documents required to be submitted by the bidder as per Tender Conditions have been
furnished
(g) The offer conforms to the Specifications and drawings
(h) Performance Statement as per Annexure-3 and past supply credentials

(i) Delivery Period confirms to the Tender Document
16. LOCAL CONDITIONS
16.1 It will be imperative on each Tenderer to fully acquaint himself of all the local conditions and
factors, which would have any effect on the performance of the contract and cost of the stores.
16.2 The Purchaser shall not entertain any request for clarifications from the Tenderer regarding
such local conditions.
17. PAYMENT TERMS

17.1 For Purchase order (PO) having value below Rs. 5 lakhs and in cases having consignee
inspection, payment terms will be : 100% payment after receipt and acceptance of material by
consignee (i.e. after grant of Receipt Note for Stock Items).
17.2 For PO having value above Rs. 5 lakhs also, normal payment terms will be 100% payment
after receipt and acceptance of material by consignee (i.e. after grant of Receipt Note for Stock Items).
17.2.1 However, in PO having clause of pre-inspection (by RITES/RDSO or any other agency), 90%
or 95% payment can be made against Inspection Certificate and proof of dispatch. Lorry receipt is not
accepted as proof of dispatch and therefore, in cases of dispatch of material by road, Proof of dispatch
will be: Receipted Challan of the supplier duly certified by gazetted officer of consignee. However, in
cases of dispatch of material by Rail, clear and unqualified RR/PWB will be considered as the proof
of dispatch. Balance 10% or 5% payment will be made on receipt and acceptance of material (i.e.
after grant of Receipt Note).
17.3 For payments in PO having PVC (Price Variation Clause), the supplier will submit
calculation-sheet of PVC amount with all the relevant documents (such as : Proof of rates/indices of
PVC components, Dispatch invoice, Receipted challan and Inspection certificate) to the Paying
authority.
18. DEDUCTIONS
18.1 Payment as in clause 17 above shall be subject to deduction of any amounts for which the
contractor is liable under the contract against this tender or any other contract in respect of which the
President of India is the Purchaser.
19. PAYMENT PROCEDURE
19.1 The bidder should agree to standard payment terms mentioned in Section Payment Terms of
this bid document failing which their offer will be liable for rejection.
19.2 Payment shall be made through NEFT/RTGS only. No payment shall be issued through
Cheque/Demand draft/cash.
19.3 The bank account details shall have to be entered by the bidder, while submitting the bids and
this will be reflected in the Purchase Order. Railways shall not be responsible for incorrect bank
details submitted by the bidder.

19.4 Change in Bank details: In cases of need to amend the bank account details of suppliers in
the Purchase Orders, the supplier shall make a specific request, along with the NEFT mandate form,
in original. The provision for change in Bank details shall be governed by instructions issued by
Ministry of Railways or Railway Board from time to time.
19.5 Payment though LC (Letter of Credit) in domestic/indigenous contracts
19.5.1 In addition to the normal system of payment though NEFT / RTGS [100 % against Receipt
Note or partial advance payment (80-90-95 %) against Receipted challan and Inspection certificate],
the option of getting payment through LC will be available in contract placed against this tender.
19.5.2 The bidder, at the time of bidding itself, shall exercise an option in writing by making
unconditional acceptance of these conditions in favour of taking payment due against the tender,
through LC arrangement. The option so exercised will be an integral part of the bid and such
option once exercised, shall be final and no change shall be permitted, thereafter, during the
execution of contract.
19.5.3 The type of LC will be sight LC. SBI shall be the banker of Purchaser (Issuing Bank of LC)
for opening of LC and its operation till final execution of the contract.
19.5.4 The incidental cost @0.15% (@ 0.023 % for tenders notified after 01.04.2020) of LC value
(or as applicable at time of opening/extension of LC) towards issue of LC and operation thereof, shall
be borne by the supplier/contractor and the same shall be recovered from their bills.
19.5.5 The schedule of payment liability arising in the contract shall be established by the Purchaser
based on the prescribed delivery schedule/stages of supply.
19.5.6 The acceptable and agreed-upon document for payments to be released under LC, shall be a
DA (Document of Authorization).
19.5.7 The supplier/contractor shall submit their bill(s) for the completed supply to the Bill
processing authority mentioned in the contract who will issue DA to enable the supplier to claim the
authorized amount from their banker (Advising Bank). For getting payment as per terms and
conditions of LC, the claim of supplier shall comprise: DA, Bill of exchange and Invoice.
19.5.8 The Supplier/Contractor shall indemnify and save harmless Purchaser/Railways from and
against all the losses, claims and demands of every nature and description brought or recovered
against the Purchaser/Railways by reason of any act or omission of the Supplier/Contractor, his agent
or the employees in relation to the LC. All the sums payable /borne by the Purchaser/Railways on this
account shall be considered as reasonable compensation and paid by Supplier/Contractor. The bank
shall also recover any amount as may be advised by Purchaser/Railways against the
Supplier/Contractor.
19.5.9 The procedure for opening of LC and payment will be as per the details available on IREPS
website.
19.6 The Provision of Submission of Bills through IREPS is also available to suppliers.

20. BIDS FOR IMPORTED STORES IN INDIGENOUS TENDERS
20.1 Purchaser will prefer to have bids directly from Foreign principal/original manufacturer
(FPM). However, the foreign bidder who quotes directly against the tender but wants to take the
services of Indian Agent (IA) during operation of contract, they should indicate in their bid about the
name and address of their IA.
20.2 Agency Commission (AC) finally payable to the bidder’s Agent in India under the contract
will be converted to Indian Rupees at the TT Buying rate of exchange ruling on the date of issue of
LOA (Letter of Acceptance) and in case LOA is not issued, it will be payable at the TT Buying rate of
exchange ruling on the date of contract. AC shall not be subject to any further exchange variation.
20.3 In case the material supplied by the foreign principal is found to be defective or
substandard, the Indian agent shall be liable to compensate any losses to the purchaser on this
account. Any change in the relationship of IA and its FPM shall not be a bar for the purchaser to
claim the losses from the Indian agent on above mentioned account. A separate undertaking
alongwith an indemnity bond shall be submitted by IA with their bid.
20.3.1 Any authorized dealer/agent quoting on behalf of their Foreign Principal/Manufacturer (FPM)
in Indian Rupees shall have to comply with the following :
(a) To quote with tender specific authorization from FPM

(b) To submit the original invoice of FPM (indicating break-up of FOB/CIF and agency
commission) along with their quotation.. Performa invoice (PI) may be accepted in
exceptional cases where it is not possible to obtain the original invoices before the contract is
placed
(c) The bidder shall submit self-attested documentary evidence about their identity (such as PAN
card. Aadhaar Card, Passport etc.)
20.3.2 Bidder shall have to give the undertaking on the following points:
(a) consent to furnish copy of customs-passed Bill of Entry for the each consignment,
Manufacturer’s Test and Guarantee certificate , Copy of Bill of Lading/AWB for the
consignment; Copy of commercial invoice of FPM and Certificate of Country of origin.
(b) Current and tender specific authorization/dealership certificate of FPM
(c) Compliance of sea/air-worthy packing condition in manufacturer’s original packing and as

per IRS Conditions of Contract (clause - 1800).
20.3.3 Bidder should attach certified copy of Agency agreement and any other relevant documents in
bid regarding the following aspects :
(a) The precise relationship between the foreign principal/manufacturer (FPM) and its Indian
agent (IA)
(b) The mutual interest, which FPM and IA have in the business of each other
(c) PAN (Permanent Account Number) of IA

(d) Any payment which IA receives in India or abroad from the manufacturer/Principal whether
as a commission for the contract or as a general retainer fee.
(e) All services to be rendered by IA whether of general nature or in relation to the particular
contract and the facilities/infrastructure available with them for the same.
20.3.4 In a tender, either the IA on behalf the FPM can quote or FPM itself can quote but both of
them (IA and FPM) cannot bid simultaneously for the same item/product in the same tender. If they
do so, then both the bids will be rejected.
20.3.5 If an agent submits bid on behalf of the FPM, the same agent shall not submit a bid on behalf
of another Principal/OEM in the same tender for the same item/product.
20.3.6 The agent is the official representative of FPM and Therefore, FPM shall also be fully
responsible for the conduct of their appointed agent.
20.3.7 The amount of Agency Commission payable to the IA will not be more than what is specified
in the Agency Agreement and it shall be payable in equivalent non-convertible Indian Rupees, after
satisfactory execution of contract. IA will be required to submit a certificate, along with their bill of
Agency Commission, confirming that the amount claimed as Agency Commission has been spent/will
be spent strictly to render services to the foreign principal/manufacturer in terms of Agency
Agreement. The Purchaser or their authorized agencies and/or any other authority of Government of
India shall have full rights to examine the books/documents of the Indian Agent and in case of any
defect or misrepresentation in respect of the afore-indicated confirmation coming to light during such
examinations, will make both: the FPM and their Indian Agent: liable to be banned/suspended from
having business dealing with Indian Railways.
20.4 Wherever applicable the successful Tenderer will have to apply to the proper Government
Authority for grant of 'requisite import Licence (if any), for such items/components as required within
14 (Fourteen) days of the receipt of the advance letter of acceptance/telegraphic/FAX/electronic
acceptance. The purchaser will have no responsibility in this regard.
20.5 Foreign exchange needed for import of items/components and import licence, wherever
necessary shall be arranged by the successful Tenderer himself.
21. DISTRIBUTION OF PROCURABLE QUANTITY
21.1 Case of no prior decision to split the order -
21.1.1 Normally full order should be placed on L-1 firm. However, if after due processing. It is
discovered that the quantity to be ordered is more than what L-1 alone is capable of supplying and
there was no prior decision to split the quantities, then this aspect will be taken into consideration. The
quantity being finally ordered will be distributed among the other bidders in a manner that will be fair,
transparent and equitable. The manner of splitting will take specific note of the following parameters.
(i) Past Performance of bidders
(ii) Capacity of bidders
(iii) Delivery requirements in the tender
(iv) Quantity under procurement

(v) Vital/safety nature of the items
21.1.2 In the absence of any differentiation on the above parameters, the manner of splitting will be
based on the stipulation given in para 21.2 below.
21.2 Case of pre-decided split ordering –
21.2.1 Railway may decide in advance to have more than one source of supply on account of
delivery requirement in tender, past performance and capability of bidders, quantity under
procurement and vital/safety nature of items.
21.2.2 Following provisions (21.2.2(A) to 21.2.6) shall be applicable in all such cases of pre-
decided split ordering:-
(A) The purchaser reserves the right to distribute the procureable quantity on one or more than
one of the eligible tenderers. Zone of consideration of such eligible tenderers will be the right of the
Purchaser. The Zone of consideration will be a dynamic mix of inter-se position of firms, supply
performance of the firms, Quantity being procured, criticality of and lead time of supply of the item,
number of established suppliers, their capacity etc.
(B) whenever such splitting of the procurable quantity is made, the quantity distribution will
depend (in an inverse manner) upon the differential of rates quoted by the tenderers, (other aspects
i.e., Adequate capacity- cum- capability, satisfactory past performance of the tenderers, outstanding
order load for the Railway making the procurement, quoted delivery schedule vis-a-vis the delivery
schedule incorporated in the tender enquiry etc. being same/similar) in the manner detailed in the
table below:
Price differential between L1 and L2 Quantity distribution ratio between L1 and L2

Up to 3% 60:40
More than 3% and up to 5% 65:35
More than 5% At least 65% on the L1 tenderer. For the quantity to be
ordered on the L-2 tenderer, Purchaser shall decide
In the phrase differential rates quoted by the tenderers, the quoted rate would mean.
(1) When no price negotiation has been called for, the original rates as obtained at the time of
tender opening. However, the rate of the highest eligible tenderer within the zero of
consideration has to be per se reasonable.
(2) When price negotiation has been called for, the reference L1 rate for assessment of ratio will
be original rate of L1 firm (suitable for bulk quantity )- say firm “A”- as obtained at the time
of tender opening.
B (I) If splitting of quantity is required to be done by ordering on tenders higher than the L2
tenderer, then the quantity distribution proportion amongst the tenders will be decided by transparent/
logical/ equity based extrapolation of the model as indicated in the above para.
B (II) There could be situation when between the lowest firm considered suitable for bulk qty.(L1
firm “A”) and another firm considered suitable for bulk quantity order, there are firms who are
considered suitable only for part quantity. For example, say L1 firm “A” is approved firm, L4 is
approved firm (and both considered suitable for bulk quantity order) and splitting is to be done
between these two approved firms. But there are two Developmental firms in between who are

suitable for part quantity. In such cases, L1 should be given its proportion based on its rate
differential with respect to L4, (say by this, L1 gets 65% of NPQ). The balance quantity (say 35% of
NPQ) is to be distributed among other firms. The balance quantity is to be distributed as follows:
(a) Allocated the Developmental L2 and Developmental L3 within the overall ceiling of 15% /
20% / 25% (of 35%of NPQ)
(b) Allocated the balance quantity to L4 firm.
Since the Developmental firms are being given the order in relation to its lower position w.r.t. L4
(Approved firm), it will not attract the provision of order on Developmental firm should not be at a
higher rate than Approved l firm as the reference rate for comparison of L2 Developmental and L3
Developmental rate is the L4 Approved firm’s rate.
21.2.3 For cases where the Rlys/PUs had entered into ToT/JV agreements, the following clause will
be stipulated as tender conditions
As the Rly has entered into ToT/JV agreement with ..................... no. of firms, they reserve
the right to place orders on all such ToT/JV agreement partners. However, for ratio/ proportion
of quantity distribution among such agreement partners, conditions as detailed in Para 26.2.2
(B) shall apply with the exception that the aspect of ‘per-se reasonability' will not be
applicable.
21.2.4 In the cases of inadequate capacity-cum-capability, dissatisfactory past performance,

large quantity of outstanding orders (liquidation of which will take very long time) etc.,
the Purchaser shall have the right to distribute the procurable quantity amongst
tenderers with due consideration to these constraints and in such a manner that would
ensure timely supply of material in requisite quantity to meet the needs of operation, maintenance,
safety etc. of the Railways, regardless of inter-se ranking of the tenderers and in a fair and transparent
manner with due conformity to the Principles of Natural Justice and Equity.
21.2.5 Notwithstanding the above, there can be exceptional situations where Purchaser may come to
a conclusion that splitting is neither possible nor feasible and/or not desirable in the administrative
interest. In such exceptional situations, Purchaser reserves the right not to split the quantity despite
pre-decided splitting clause in the tender condition by recording justification in writing for doing so..
22. ACCEPTANCE OF BIDS
22.1 Purchaser is not bound to accept the lowest or any bid nor to assign any reason for doing so
and reserves the right to accept any bid in respect of the whole or any portion of the item specified in
the tender and the contractor shall be required to supply at the rate quoted in tender. The rates quoted
by the bidder for the full quantity will be taken as valid even for part quantity.
22.2 Purchaser reserves the right to cancel the tender for full or part quantity tendered without
assigning any reason.

23. CARTEL FORMATION
23.1 The tenderers are expected to quote rates which are most competitive and reasonable,
commensurate with market trend in fair competition.
23.2 Whenever all or most of the approved firms quote equal rates and cartel formation is
suspected, Purchaser reserves the right to place order on one or more firms with exclusion of the rest
without assigning any reason thereof.
23.3 Bidders are expected to quote for a quantity not less than 50% of the tendered quantity. Offers
for quantity less than 50% of tendered quantity will be considered unresponsive and liable to be
rejected in case cartel formation is suspected. However, Purchaser reserves the right to place order on
one or more bidders for any quantity of tender.
23.4 The bidders who quote in cartel are warned that their names are likely to be deleted from list
of approved sources in addition of referring the matter to CCI (Competition Commission of India).
23.5 Whenever tender is floated with purchase restrictions from sources approved by nominated
authorities and there exists a suspected cartel situation by approved sources or the rates available from
approved source/sources are adjudged unreasonably high, despite fair efforts as permissible, the
purchaser reserves the right to place orders on firms outside the approved vendor list, without any
restrictions.
23.6 The present policy of distribution of ordering quantities on approved sources and new
sources, based on the status of approval obtaining on the date of tender opening will be followed in
normal circumstances. However in tenders, where cartel formation is suspected, the purchaser will be
free to distribute the ordering quantities in any manner deemed fit in the interest of the administration
ignoring the status of approval.
23.7 In the event of the offers conforming to any aspect of the definition of cartel mentioned in
“The Competition Act 2002 (12 of 2003)”, in addition to the existing remedies, the purchaser also
reserves the right to refer the matter to the Competition Commission of India (CCI), which is a
statutory body constituted under “The Competition Act 2002 (12 of 2003)”, for providing necessary
relief to the Purchaser who represent Central Government organisation serving the public. In addition,
the purchaser also draws attention of the tenderers to Chapter VI of the “The Competition Act 2002
(12 of 2003)” which deals with Penalties. This will be in addition to other rights and remedies
available to the Railway Administration under the Contract and Law.
24. SPECIAL INSTRUCTIONS FOR PROCUREMENT OF M&P ITEMS
24.1 For the items of M & P nature and other special equipments/assemblies having clauses of
AMC/Warranty in the specification, Bidder shall quote their item-wise rate for concomitant
accessories/essential spares, which are required to be supplied along with the equipment/machine for
commissioning. They shall quote their rates separately for optional/recommended spares of their
machine/equipment. Purchaser will have option to purchase or not to purchase such
optional/recommended spares from such list depending on his need.
24.1.1 Therefore, the following components of rate quoted by bidder will be added to the rate of
basic equipment/machine for computing landed rate for the purpose of inter-se ranking of the bid :
(i) Cost of AMC (with NPV calculations done as per clause 24.2.4)

(ii) Cost of concomitant accessories
(iii) Cost of essential/mandatory spares within scope of supply
24.1.2 Cost of recommended/optional spares will not be added for the purpose of inter-se ranking of
the bid Further as mentioned in clause 1.35.6 of this bid document. Cost of essential spares and
service charges for items of repair-work of Machine/Equipment beyond the AMC period will not be
included in the price of tendered Machine/Equipment for the purpose of comparative evaluation of
bids.
24.2 Special instructions for tenders having AMC (Annual Maintenance Contract)
component:
24.2.1 AMC is meant for proper upkeep and maintenance of the tendered Machine/Equipment after
warranty period. Unless mentioned otherwise in the specification, the scope of AMC will be
comprehensive and it will include preventive and breakdown maintenance. AMC charges will include
all costs of personnel, spares etc. except the cost of consumables required for day-to-day operation &
daily maintenance checks. The terms and conditions of AMC must clearly specify the maximum
downtime and maximum response time.
24.2.2 Bidder should confirm that they will render quick after-sale service during the warranty
period of the machine and advise details of their office/dealer network in the vicinity of consignee
who will render the said service.
24.2.3 Bidders are required to quote charges on an annual basis (for each year separately) for post-
warranty AMC for a period of 5 (five) years unless mentioned otherwise in the specification/tender.
AMC charges shall be payable in Indian Rupees only. The bids will be loaded with quoted AMC
charges for evaluation of bids and in order to equitably compare different AMC charges of different
years, the concept of NPV (Net Present Value) will be used at a discounting rate of 10 % (unless
mentioned otherwise in tender document) so as to bring all the bids at the same footing in the
assessment of landed rate (i.e. FOR-destination price).
24.2.4 NPV is the present value of rate quoted (of AMC charges) for prospective period (year
number after the warranty period): i.e. the maintenance charges quoted for future years(s) and
Therefore, these charges are to be discounted to arrive at their present value. Hence NPV is calculated
backwards as per formula of compound interest: NPV = AMC/ [(1+D/100) ^n ]. The example of one
such calculation is given as under ( ^ denotes sign of exponent : e.g. 2 ^3 =2x2x2=8 )
Period Code Example

Warranty Period (years) W 5
AMC Period (years) AY 3
Discounting rate (%) D 10
Year (after W) AMC AMC quoted Factor for NPV NPV
(Rs.) (Rs.)
1 = W+1 (6th year) A1 100 1/(1.1^6) =0.564 56.40
2 = W+2 (7th year) A2 100 1/(1.1^7)=0.513 51.30
3= W+3 (8th year) A3 100 1/(1.1^8)=0.467 46.70
Total A 154.40

24.2.5 Purchaser/Consignee reserves the right for entering into Annual Maintenance Contract
(AMC) on the basis of rates quoted by the firm in their tender against AMC charges.
24.2.6 Post-AMC maintenance of Machine/Equipment will be dealt with by the end users. In order
to facilitate the same, the bidder is required to quote the current cost of essential spares required for
maintenance of Machine/Equipment after AMC period and the current service charges for each item
of repair-work of Machine/Equipment beyond the AMC period. These charges will not be included in
the price of tendered Machine/Equipment for the purpose of comparative evaluation of bids.
24.3 Bidders who are OEM (original manufacturer), must give undertaking for supply of spare
parts for a period of expected life of Machine/Equipment. Other bidders must submit undertaking
from OEM for supply of spare parts for a period of expected life of the Machine/Equipment.
24.4 Payment Terms For Purchase orders of Machinery & Plant (M&P) items (PO having
value above Rs. 5 lakhs ): Unless and otherwise mentioned in tender/contract, the normal terms of
advance payment will be : “ 80% payment will be made after receipt of the machine in good and
acceptable condition at consignee’s end against inspection certificate and Receipted challan certified
by the gazetted officer of consignee. Balance 20% payment will be made on successful installation,
commissioning/testing , proving test and final acceptance of the Machine/Equipment subject to
submission of WBG (Warranty Bank Guarantee) by the contractor (as per Format given in Annexure
D of this bid document) for an amount of 10% of the contract value. WBG should remain valid for a
period of 60 days beyond the warranty period. “
25. SPECIAL CONDITIONS FOR REVERSE AUCTIONS
25.1 Reverse Auction is a two bid system.
25.2 Financial Bids in single currency (INR) only shall be allowed.
25.3 Each tender clearly specifies the essential technical and commercial parameters in a
transparent manner. No deviation to such essential Technical & Commercial conditions shall
be permitted to the vendors in the electronic bid form.
25.4 Procuring authority shall decide the bid evaluation criteria in the tender itself i.e.,
whether the evaluation shall be item wise, consignee wise or overall tender value wise.
25.5 Bidders shall be simultaneously required to submit Technical & Commercial BID and
Initial Price Offer.
25.6 Offers found eligible for bulk order shall be categorised as “Qualified for Bulk
Order” and offers found eligible for developmental order shall be categorised as “Qualified
for Developmental Order” for the purpose of RA.
25.7 Offers not complying with essential technical & commercial requirements of the
tender shall be declared as “Ineligible for any order”.

25.8 Procuring authority shall decide the bid evaluation criteria in the tender itself i.e.,
whether the evaluation shall be item wise, consignee wise or overall tender value wise.
25.9 Vendors in their own interest are advised to get familiar about the following
terminologies / parameters that are defined in the RA tenders before quoting their bids in the
IREPS system:-
Sl. Terminology/ Definition

No. Parameter
1 Bidding Type Two stage Evaluation
2 Bidding System Two Packet System
3 Initial Financial Financial Bid to be submitted by the vendors during 1st stage of
Offer bidding.
4 Auto Elimination Please refer para 25.13 a for details
Rules
5 Evaluation Criteria In case of item wise evaluation criteria every item included in
the reverse auction constitutes a separate lot. In case of Group
wise evaluation criteria every group of items constitute a
separate lot. In case of Total Value wise evaluation criteria the
entire tender constitutes a single lot.
6 Initial Cooling Off The minimum time period to be stipulated for closing of the 1st
Period lot (or the only lot in case of only one lot). This is the minimum
time for which Reverse Auction shall remain open for bidding
even for a single lot scenario.
7 Subsequent The time period immediately prior to the closing date/time for a
Cooling Off Period lot during which -Submission of a fresh bid shall lead to
automatic extension of closing date / time for the lot - Non-
receipt of a fresh bid against the lot shall lead to closure of
auction for that lot.
Every time an offer is received during this time interval, the
closing time of the lot is extended automatically and is set equal
to the time of submission of last bid + subsequent cooling off
period.
8 Successive Lots If there are multiple lots (items or groups as the case may be) in
Closing Interval a tender, this parameter defines the time period between
closures of two successive lots at the time of scheduling of
Reverse Auction. In case of single lot situation this will not be
applicable.
9 Allow Next Bid (i) Current Lowest Bid: If this option is applicable for the
lower than Reverse Auction, any bidder will only be allowed to submit a
fresh bid equal to or lower than the current lowest bid submitted
against the lot by any bidder in the same category
(Bulk/Developmental) minus Minimum Decrement stipulated
against the tender.
(ii) Firm’s Lowest Bid: If this option is applicable for Reverse

Auction, the bidder will be allowed to submit a fresh bid equal

to or lower than his own last bid (Initial Financial Offer or
Reverse Auction Bid) minus Minimum Decrement stipulated
against the tender.
10 Minimum Minimum reduction in rate over the last bid that a bidder has to
Decrement offer for submission of a fresh bid. It will be defined in Reverse
Auction in percentage terms.
25.10 Essential Parameters: Essential Parameters includes Essential Technical and

Commercial Parameters as conditions. The bidders are expected to agree to these conditions
on-line, without which they will not be permitted to submit their offers.
25.11 Initial Price Offer of only those bidders categorised as Qualified for Developmental
Order or Qualified for Bulk Order shall be opened and tabulated by the system separately,
category wise. Extant Instructions for tabulation shall apply for tabulation of Initial Price
Offers.
25.12 Financial Bid: Financial bid shall comprise of Final Price Offer obtained through
Reverse Auction.
25.13 Following conditions and procedure shall be followed in selecting the bidders for
conduct of Reverse Auction:
a. Selection of vendors for Reverse Auction for bulk ordering

Number of Vendors No. of Vendors to be Remarks
Qualified for Bulk order selected for Reverse
Auction
Less than 3 NIL * The bids disallowed from
3 to 6 3 participating in the Reverse
More than 6 50% of vendors Auction shall be the highest
qualified for Bulk bidder(s) in the tabulation of Initial
Order (rounded off to Price Offer.
next integer) subject to In case the highest bidders quote
maximum 8 the same rate, the Initial Price
Offer received last, as per time log
of IREPS, shall be removed first,
on the principle of last in first out,
by IREPS system itself.
*NOTE:
(i) If the number of tenderers qualified for Bulk Order / Award of Contract is less than 3, RA
shall not be done and tender may be decided on the basis of Initial Price Offer(s).

(ii) Selection of vendors for Reverse Auction for developmental ordering: Offers
qualified for Developmental Order, with initial price offer lower than the highest initial price
offer of a vendor qualified for Bulk Order and selected for Reverse auction after elimination,
shall be allowed to participate in RA.
(iii) MSE Criteria: All MSEs (Micro and Small Enterprises) found Qualified for
Bulk/Developmental Orders/Award of Contract but could not be selected as per criteria
stipulated on para 23.13 (a) and 23.13 (a) Note (ii) above, but are within the range of 15% of
the lowest Initial Price Offer of the bidder qualified for bulk order shall be permitted to
participate in the Reverse Auction, irrespective of their inter-se ranking on the basis of Initial
Price Offer. Such MSEs shall be over and above the number of vendors selected for Reverse
Auction, as per para 23.13 (a) and 23.13 (a) Note (ii) above. The lowest Price bid shall mean
lowest initial price bid of the vendor qualified for bulk order. However, in case of all bidders
qualifying for bulk order as well as for Developmental Order (before applying the elimination
criteria) are within MSE category, this clause will not apply.
(iv) Make in India Criteria: All bidders eligible for benefits under Public Procurement
(Preference to Make in India) Order – 2017, found qualified for Bulk/Developmental
Order/Award of Contract and are within the specified range of price preference, under Make
in India Policy, of lowest Initial Price Offer of the vendor qualified for bulk order shall be
permitted to participate in the Reverse Auction, irrespective of their inter-se ranking on the
basis of Initial Public Offer. Such bidders shall be over and above the number of vendors
selected for Reverse Auction, as per para 23.13 (a) and 23.13 (a) Note (ii) above. However, if
all the bids qualified for bulk order as well as for Developmental Order (before applying the
elimination criteria) also qualify under “Make in India Order, 2017”, this clause will not
apply.
b. During Reverse Auction process, bidders shall not be allowed to bid higher than the
lowest Initial Price Offer.
25.14 Reverse Auction among bids categorized as Qualified for Developmental Order and
Qualified for Bulk Order shall be conducted concurrently on IREPS. Qualified Bidders shall
only be able to see both the auction screens, i.e., auction screen of Reverse Auction amongst
bidders qualified for bulk order and auction screen of Reverse Auction amongst bidders
qualified for developmental order. However, bidders shall only be permitted to bid on the
respective screens relevant to them as per their qualification. Purchaser shall not be permitted
to see any of the auction screens. Purchaser shall only be intimated on website about the
status of the reverse auction, i.e., when the auction will start/had started, whether auction is
live or whether auction has closed.
25.15 Quantity to be covered on developmental orders shall be limited to 20% of the Net
Procurable Quantity (NPQ). The quantity covered on developmental orders shall be within or
outside Net Procurable Quantity, which may be decided by Tender Committee/Tender
Accepting Authority. This aspect has to be decided before conduct of Reverse Auction.

25.16 After obtaining the final price offers through Reverse Auction, the lowest bids of only
those bidders who had participated in the Reverse Auction shall be tabulated and considered
for ordering. The offers of the bidders which were eliminated from reverse Auction in
terms of para 23.13 shall be tabulated separately and shall not be considered for
ordering. All the relevant policies of Government of India at the relevant time shall be
applicable.
25.17 Procedure for conduct and reporting of Electronic Reverse Auction (e-RA):
25.17.1 Purchaser shall fix the following, depending upon the nature of tendered item
and complexity of case on hand:
(i) Initial e-RA period: This shall be the initial time interval for e-RA. e-RA shall be
open for this duration.
(ii) Auto extension period: In case any offer is received in the time period equal to auto
extension period before close of initial e-RA period, the e-RA shall be extended for
time equal to auto extension period from the time of last bid. There shall be no upper
limit on number of auto extensions. When no offer is received in the last auto
extension period, e-RA shall close.
(iii) Minimum decrement in percentage of value of the last successful bid.
25.17.2 Date and time of start of e-RA shall be communicated to the qualified
tenderers selected, through e-mail to their registered e-mail id/ SMS to the registered mobile
number. Bidders should note that this is system generated and they should make
arrangements for regularly checking of the notifications.
25.17.3 During Reverse Auction (e-RA) period, identities of the participating tenderers
will be kept hidden.
25.17.4 Bidders will not be allowed to revise the taxes and other levies, after
submission of initial price bid.
25.17.5 Starting point for Reverse Auction(e-RA) shall be the lowest initial price bid
of the tenderer eligible for award of contract. During Reverse Auction(e-RA) process, bidders
shall not be allowed to bid a rate higher than the lowest Initial Price offer. Minimum
admissible bid value will be last bid value minus minimum decrement as specified by the
tendering authority before starting of Reverse Auction (e-RA).
25.17.6 After close of the RA, tabulation of last (minimum) bids received from all the
tenderers will be generated and made visible to Railways and participating tenderers as
Financial bid.
25.17.7 Purchaser can also view the bidding history in chronological order.

25.17.8 Bidders shall not be allowed to withdraw their last offer.
25.17.9 L-1 will be defined as the lowest bid obtained after the closure of e-RA.
PRINCIPAL CHIEF MATERIALS MANAGER

EAST CENTRAL RAILWAY, HAJIPUR
DIST. VAISHALI (BIHAR), PIN – 844101

PART· II
EAST CENTRAL RAILWAY
SECTION - III: GENERAL CONDITIONS OF CONTRACT
1. Acceptance of this tender (including LOA : Letter of advance acceptance : issued before
formal Purchase order) shall constitute a binding contract between the successful bidder and the
President of Union of India acting through PCMM/ECR-Hajipur.
2. The Contract/Purchase Order placed will be governed by all the conditions mentioned in
schedule of tender and documents attached with the tender.
3. The bidder, on whom the PO (Purchase Order) will be placed against this tender case, will
have to execute the previous PO(s) of the Purchaser (ECR), if any, for the tendered item before
commencing the supply against the new PO.
4. Time Preference clause (applicable only when specified in tender/contract)

If a contract is placed on higher bidder as a result of invitation of tender, in preference to the lowest
acceptable bid in consideration of bid of early delivery , the contractor will be liable to pay to the
Purchaser the difference between the contract rate and that of the lowest acceptable bid on the basis of
landed rate (including all element of freight, Taxes & duties, and other charges), in the case of
contractor’s failure to complete the supplies in terms of such contract within the date of delivery
specified in the tender and incorporated in the contract. This is in addition to other legal rights
available to the Purchaser under the terms & conditions of the contract.
5. Payment Terms:
5.1. For Purchase order (PO) having value below Rs. 5 lakhs and in cases having consignee
inspection, payment terms will be : 100% payment after receipt and acceptance of material
by consignee (i.e. after grant of Receipt Note).
5.2. For PO having value above Rs. 5 lakhs also, normal payment terms will be 100% payment
after receipt and acceptance of material by consignee (i.e. after grant of Receipt Note).
However, in PO having clause of pre-inspection (by RITES/RDSO), 95% payment can be
made against Inspection Certificate and proof of dispatch. Lorry receipt is not accepted as
proof of dispatch and Therefore, in cases of dispatch of material by road, Proof of dispatch
will be: Receipted Challan of the supplier duly certified by gazetted officer of consignee.
However, in cases of dispatch of material by Rail, clear and unqualified RR/PWB will be
considered as the proof of dispatch. Balance 5% payment will be made on receipt and
acceptance of material (i.e. after grant of Receipt Note).
5.3. For Purchase orders of Machinery & Plant (M&P) items (PO having value above Rs. 5
lakhs): unless and otherwise mentioned in tender/contract, the normal terms of advance
payment will be : “80% payment will be made after receipt of the machine in good and
acceptable condition at consignee’s end against inspection certificate and Receipted challan

certified by the gazetted officer of consignee. Balance 20% payment will be made on
successful installation, commissioning/testing , proving test and final acceptance of the
Machine/Equipment subject to submission of WBG (Warranty Bank Guarantee) by the
contractor (as per Format given in Annexure of this bid document) for an amount of 10% of
the contract value. WBG should remain valid for a period of 60 days beyond the warranty
period.”
5.4. For payments in PO having PVC (Price Variation Clause), the supplier will submit
calculation-sheet of PVC amount with all the relevant documents (such as : Proof of
rates/indices of PVC components, Dispatch invoice, Receipted challan and Inspection
certificate) to the Paying authority.
6. Statutory Variation Clause (Only applicable if specifically mentioned in the letter of

acceptance): Statutory Variation in taxes and duties, or fresh imposition of taxes and duties by State/
Central Governments in respect of the items stipulated in the contract (and not the raw materials
thereof), within the original delivery period stipulated in the contract, or last unconditionally extended
delivery period shall be to Railways' account. Only such variation shall be admissible which takes
place after the submission of bid. No claim on account of statutory variation in respect of existing
tax/duty will be accepted unless the tenderer has clearly indicated in his offer the rate of tax/duty
considered in his quoted rate. No claim on account of statutory variation shall be admissible on
account of misclassification by the supplier/ contractor.
7. Option Clause (Only applicable if specifically mentioned in the letter of acceptance):

Purchaser reserves the right to increase or decrease the ordered quantity by 30 percent of the ordered
quantity at any time during the currency of the contract. The increase in quantity can be done even at
the time of ordering.The purchaser shall be entitled to exercise this option clause in one or more
instalment as long as the total variation in quantity does not exceed the limit of 30 percent of total
ordered quantity. Plus option clause can be exercised at any time till final delivery date of contract
even if the supply of original ordered quantity is completed before the last date of delivery period.
8. Inspection Clause:
8.1. All inspection certificates should be accompanied by the relevant test reports.
8.2. The goods/material peculiar to the use/requirement of Indian Railways (such as parts and
fittings of rolling stock etc) which have been found rejected during inspection and which
could not be rectified, should be defaced by the inspecting authority to avoid recycling of
such rejected material and thereby to avoid ultimate failures of assets. All such rejected
materials (which are designed for exclusive use of Indian Railways) will be defaced /
damaged by the consignee/user/inspection agency so as to ensure that the rejected lot are not
recycled to ECR or any other unit of Indian Railways.
8.3. No consignment or part of consignment which has once been rejected may again be
submitted except in case where the inspecting officer considers the defect to be rectifiable.

The Purchaser or the inspecting officer shall have free access to the works/factory of the
manufacturer at any time and they will be at liberty to inspect the material used in the
manufacture of tendered item at any stage and may take such actions as may be considered
necessary (even to terminate the contract). if it is found that the proper quality/process is not
being followed by the contractor in manufacture of the item as per requirement of contract
and its specification.
8.4. Consignee will be the ultimate authority for acceptance/rejection of the material received by
him. Notwithstanding a quotation for delivery in the particular state, the responsibility of
contractor/supplier will not cease until delivery has been taken at destination by the
purchaser or by such officer as nominated by him. In case of dispute as regards quality or
supplies delivered, the decision of the Purchaser shall be final.
8.5. In case of items such as bearings/tooling items and commercially available branded items,
where the inspection (as per contract ) has to be carried out at the premises of Authorized
Agent/Dealer, the manufacturer (OEM) should also associate, if practically possible, so as to
ensure the genuineness of material.
8.6. In case the supplier fails to offer the material for inspection against inspection call issued to
the inspecting agency or if the material have to be re-inspected due to rejection of the
material at supplier’s end by the inspecting agency or due to non-dispatch of material
within validity of Inspection Certificate, then the inspection charges applicable for the
offered quantity and actual cost of the test charges incurred will be paid by the supplier to the
inspecting agency.
9. Terms of Delivery:
9.1. The supplier shall be responsible for covering the risk of loss, destruction, damage or
deterioration of goods during transit/transportation till their delivery to consignee as per
clause 1501 of IRS Conditions of Contract).
9.2. The supplier, who in terms of contract dispatch the material on freight pre-paid basis, should
submit their claim for reimbursement of freight charges with necessary documents. Re-
imbursement of freight charges shall be made at actuals subject to maximum of freight
charges mentioned in contract
9.3. Unless otherwise mentioned in the tender/contract, the FOR condition shall be “FOR:
Destination [i. e. consignee(s) of ECR mentioned in tender schedule].
10. Delivery Schedule:
10.1. Time and the date of delivery as specified in the Purchase Order (PO) is the essence
of the Contract. The delivery period shall be reckoned from the date of issue of LOA (Letter
of advance acceptance) or date of PO, whichever is earlier.
10.2. Extension of Delivery date may be considered in deserving cases on request of

supplier/contractor, where a genuine reason exists. Such extensions of delivery date will

normally be granted with levy of Liquidated damages (LD) and Denial Clause (DC) which
are applicable as per clause No. 0702 and 3400 of IRS conditions of contract.
10.3. Liquidated Damages (LD) is levied on the supplier to liquidate the damages due to
delay in supply. The purpose & effect of DC is that the supplier will not be entitled to any
benefit of upward variation in rate on any account (Taxes & Duties, PVC, Currency
Exchange rate, etc.) after expiry of the original delivery Period of contract but in case of any
reduction in such element of rates, the benefit will be passed on to Purchaser.
10.4. Purchaser reserves the right to recover from the contractor as agreed LD and not by
way of penalty, a sum equivalent to 0.5 % (half percent) of the price of contracted goods
(including elements of taxes, duties, freight etc.) per week or part of the week during which
delivery is accepted for the delayed quantity (i.e supplied after expiry of original/re-fixed
delivery period). Upper limit for recovery of LD in supply contracts will be 10% (Ten
Percent) of value of contract irrespective of delays, unless otherwise provided specifically in
the contract.
10.5. LD will not be waived unless reasons of delays in supplies are beyond the control of
supplier.
11. Failure of supplier in execution of contract1
11.1. In the event of any failure to supply the material, within the Delivery Period Specified
in the Purchase Order, as per the Delivery Schedule, the Purchaser may cancel the contract
for defaulted part by forfeiting Security Deposit commensurate to that lot of Supplies.
11.2. Wherever Security Deposit has been exempted, for any reason, and the
supplier/contractor fails to supply goods as per conditions of Contract, as amended
from time to time, the Purchaser shall have the right to levy damages from the supplier
for failing to comply with the contractual conditions, not by way of penalty, an amount
equal to the SD amount, as would have applicable if the contract was with a non-
exempted vendor. These damages shall be treated as recoveries outstanding against the
supplier/contractor and dealt with accordingly.
12. Marking of Material Supplied:
12.1. The suppler shall indicate: Name of manufacturer, Month & Year of manufacturing
and Expiry Date (for shelf-life items): by casting/stamping/etching/embossing, at an
appropriate place of each piece supplied, without affecting the functional utility and
structural stability of the components/material.
13. Handling of rejections of pre-inspected item and warranty rejections
1
Rly Bd 2004/RS(G)/779/11/Pt. dt. 23.12.2019

(as per Railway Board’s letter No. 2000/RS(G)/379/2 dated 07.08.2015 and clarification
dated 18.01.2018)
13.1. Two kinds of rejection occur in case of pre-inspected supplies made by vendors.
i. Pre-inspected material rejected by consignee at the time of receipt
ii. Material rejected in warranty
13.2. The methodology of handling these rejections will be as under:
13.3. Cat A Pre-inspected material rejected by consignee at the time of receipt-

13.3.1. In case of rejection of pre-inspected goods at consignee end, the material rejection
advice/rejection memo should be sent by consignee to all concerned: i.e. Firm/Supplier,
Purchaser, Pre-inspecting agency, Paying authority as per the contract etc. without fail.
13.3.2. In case payment has been made to the firm for the material, the concerned paying
authority as per contract should note the rejection advice details in its recovery register
for effecting recovery of payments made, as the case may be.
13.3.3. Joint inspection of rejected material will be held with pre-inspecting agency and the
firm. The ultimate authority for decision to conduct joint inspection will be consignee.
However, if the firm does not desire to have/to attend joint inspection or in case of
failure of either of the two parties (inspecting agency and the firm/supplier) to associate
with joint inspection, the joint inspection should be held by the consignee with
whichever of the two parties comes for joint inspection. Irrespective of whether the
party (ies) attends joint inspection or not, the modality of joint inspection etc will have
to be completed with 21 days of communication of rejection advice to the supplier (in
line with IRS conditions of contract: clause 0703). For imported material, the time limit
will be 45 days.
13.3.4. Firm may be permitted to collect the rejected goods only after the firm has deposited
the payments already made by Railway/Purchaser (if any) to the firm or equivalent
amount has been recovered for this purpose.
13.4. Cat B Material rejected in warranty :
13.4.1. Material are rejected in warranty in the following situations:

(a) The material rejected was issued to the user (shop/shed etc) from its associate stores
depot.
(b) The material rejected was received by the user from a PU (Production Unit of Indian
Railways) or from a stores depot which is not the associate stores depot of the user.
13.4.2. Cat B.I(a) For warranty failure in shop/shed of material issued from its associate
stores depot :
13.4.2.1. All warranty claims will be lodged by the associate depot officer after getting
the warranty rejected material from user under Advice note of returned stores with
reasons of warranty rejection indicated therein, Before lodging the warranty claim
the associate depot officer will satisfy himself about the correctness of PO and
ensure that other details including reasons(s) of warranty rejection are available
with the Advice note of returned stores. The warranty claim will be processed
following procedure indicated in sub-clauses 13.3.1 to 13.3.4 above except for the
following changes: The ‘rejection advice’ mentioned in sub-clause 13.3.1 will be

replaced by the ‘warranty rejection advice’. The time which can be taken for the
completion of modality of joint inspection as per sub-clause 13.3.3 will be 45 days
(instead of 21days) from the date of communication of rejection advice to the
supplier. More time is being given for joint inspection because this is a case
wherein supplies have already been taken into the usage system of Railway. Thus,
either the pre-inspection agency or the firm or the Railway may like to have a
more detailed understanding of the failure
13.4.2.2. In case of replacement supply against the rejected goods, the same should be
pre-inspected by same pre-inspecting agency who passed the material earlier. In
line with IRS conditions of contract clause 703, no inspection charge will be paid
by Railway to the inspection agency for the replacement supply.
13.4.2.3. However,, in case of component level rejection in a pre-inspected item

(which is an assembly), the replacement supply of that component can be accepted
based on firm’s internal inspection certificate/guarantee certificate and final
inspection by consignee
13.4.3. Cat B.I(b) For warranty failure in shop/shed of material received from PU
(either under sale issue note or as a purchased component of Rolling Stock
manufactured at the PU) or from a stores depot (under inter depot transfer/issue note)
which is not the associate stores depot of the end user:
13.4.3.1. In such cases it may not be convenient for the end user to return the material
to the stores depot (against which the original supply was made by the vendor to
Railways). Thus in all such cases, the warranty rejected material will be kept in
safe custody by the end user and the stores depot (which received the original
supply) will be advised by the end user about the warranty rejection duly
indicating the reason(s) of rejection with a confirmation that the rejected material
is under end user’s custody.
13.4.3.2. The stores depot (which received the original supply) will raise warranty
claim on the firm. Before lodging the warranty claim, the depot officer will satisfy
himself about the correctness of PO (Purchase Order) and ensure that other details
including reason(s) of warranty rejection are available from the end user. The
warranty claim will be processed following procedure indicated in sub-clauses
13.3.1 to 13.3.4 above except for the following changes: the ‘rejection advice’
mentioned in sub-clause 13.3.1 will be replaced by the ‘warranty rejection advice’.
The time which can be taken for the completion of modality of joint inspection as
per sub-clause 13.3.3 will be 45 days (instead of 21 days) from the date of
communication of rejection advice to the supplier. More time is being given for
joint inspection because this is a case wherein supplies have already been taken
into the usage system of Railways. Thus, either the pre-inspection agency or the
firm or the Railways may like to have a more detailed understanding of the failure.
For imported material, the time limit in Cat. B.I (a) and Cat. B.I(b) will be 90
days.

13.4.4. Cat B.II Warranty quantity replacement: The warranty quantity replacement will be
accounted under warranty Receipt Note by the depot officer (which raised the warranty
claim as in sub-clause B.I (a). Financial recovery (if any made) against the warranty
failure will be refunded to the firm on warranty quantity replacement.
13.4.5. Inspection of the replacement supply against warranty rejection:
13.4.5.1. For cases of replacement supply against warranty failure falling in the
category B.I (a) above, the replacement supply should normally be inspected by
the same inspection agency which inspected and passed original supply. Thus for
Category B.I (a), any change in inspecting authority for the warranty replacement
will necessitate a formal amendment in contract.
13.4.5.2. In case of warranty rejection of item of the category B.I(b) above, it may in
some cases be difficult to re-use the services of inspecting agency which passed
the original supply. Similarly for some items, the end user/ consignee may not
have the requisite inspection facility/expertise.
13.4.6. Thus for warranty rejection falling in the category B.I(b) above:-
The replacement supply can be inspected by the same inspecting agency which
inspected and passed the original supply. Payment of inspection charges will be
borne by supplier.
OR
The replacement supply can be inspected by authorized representative of
consignee.
OR
The replacement supply can be made by Firm’s own internal inspection certificate
The decision on the above will rest with the depot officer who raised the warranty
claim and will be indicated in the warranty claim notice.
13.4.7. However, in case the warranty failure is of a component of an assembly supplied, the
component can be accepted on firm’s own Guarantee certificate/internal inspection
certificate and consignee’s final inspection for both the categories {Cat. B.I (a) and Cat.
B. I (b)} of warranty failure.
13.4.8. Place of warranty replacement- For warranty replacement of category B.I (a), in
order to ensure correct accountal of warranty replacement, the place of warranty
replacement will be the depot which received the original supply .For warranty
replacement or failure falling in category B.I(b) above, an exemption can be made and
the place of replacement supply can be indicated by the depot officer (at his option) in
the warranty claim notice to the firm to be the end user’s place.
13.4.9. For warranty replacement of the category B.I(b), due care will be taken by the end
user to ensure that accountal of replacement supply etc. are properly taken care of. After
settlement of warranty claim the rejected material will be handed over by the end user to

the firm’s representative. The end user will also inform the depot officer who raised
warranty claim about the replacement.
13.5. At the option of the depot officer/end-user, rectification of the material rejected
[under category (A) and (B)] may be permitted within Railway premises by the firm only
after the firm has refunded the payment (if already made by Railway) or equivalent amount
has been withheld for this purpose. However,, from the date of communication of rejection
advice, the rectification activity has to be completed within 21/45 days for
indigenous/imported material respectively for rejection of the category 13.3 (A) and 45/90
days for indigenous/imported material respectively for the rejection of the category 13.4 (B).
If more time is taken beyond this, applicable ground rent will be levied on the firm.
14. Special conditions for procurement of M&P (Machinery & Plant) items
14.1. Commissioning and Proving out of M&P :
14.1.1. The contractor shall arrange commissioning of the Machine/Equipment at the

premises of consignee and shall carry out necessary proving test to demonstrate the
performance of equipment to the entire satisfaction of the consignee.
14.1.2. The time allowed for commissioning of Machine/Equipment shall be the essence of
the contract. The Contractor (or his authorized agent) shall commission the
Machine/Equipment within stipulated time as mentioned in the contract. This time-
frame will be applicable from the date of intimation from the consignee in respect of
readiness of the machine/equipment for commissioning in cases where the
Machine/Equipment is to be installed by the consignee. The time schedule includes the
time for installation in cases where work of installation is also to be undertaken by the
contractor.
14.1.3. In the event of contractors’ failure to have M&P commissioned as per time-period
specified in the contract, Purchaser may withhold, deduct or recover from the contractor
as penalty, a sum @2% (two percent) of the price of M&P which the contractor has
failed to commission as aforesaid for each and every month (part of a month being
treated as a full month) during which the M&P may not have been commissioned,
subject to an upper limit of 10% (ten percent) of the contract value.
14.1.4. Failure to install and commission the Machine/Equipment within stipulated time after
intimation from the consignee will be taken as breach of contract and Purchaser will be
at liberty to forfeit the SD (Security Deposit) furnished by the supplier without any
prejudice to other rights available to Purchaser under the contract. The continuance of
commissioning work after expiry of stipulated time will also constitute default for the
purpose of the above. The decision of the Purchaser, whether the delay in
commissioning is attributable to the contractor, shall be final.
14.2. Warranty:
14.2.1. Unless otherwise mentioned in specification, the warranty period for M & P items
will be 24 months from date of commissioning and proving out of Machine/equipment.

14.2.2. Maximum down time during the warranty period will be 2% for online M&P and
10% for offline M&P calculated on quarterly basis. A maximum period of 2 (two)
weeks be allowed for attending and rectification of faults during the warranty period.
14.2.3. A penalty of 0.5% per week (or part thereof) of the contract value will be levied for
delay in response time for attending and rectification of faults beyond specified time
during the warranty period.
14.2.4. Maximum penalty to be levied on account of warranty failure will be 5% of the

contract value calculated during whole of warranty period and after that if there is any
delay on the part of supplier, the Purchaser shall be entitled for encashment of WBG
(Warranty Bank Guarantee). In such cases the bad performance of the supplier/vendor
during the warranty period will be recorded and circulated to all units of Indian
Railways and it would be considered as a negative factor by Purchaser/tendering agency
in evaluation of the vendor’s bids in future tenders.
14.2.5. All replacement and repairs that the purchaser shall call upon the contractor to deliver
or perform under this warranty shall be delivered and performed by the contractor
within 1 (one) week, promptly and satisfactorily. The warranty period will be extended
by the number of days the machine remains under breakdown during the warranty
period and the warranty Bank Guarantee would be returned only at the end of such
extended warranty period of the full machine.
14.2.6. The Contractor shall replace or repair the equipment or such portion thereof as is
found defective by the Purchaser, free of cost at the ultimate destination or at the option
of the purchaser, the Contractor shall pay to the Purchaser value thereof at the contract
price and such other expenditure and damages as may arise by reason of the breach of
the condition herein specified.
14.2.7. The decision of the Purchaser in regard to Contractor's liability and the amount, if
any, payable under this warranty shall be final and conclusive.
14.3. Payment terms and Conditions of AMC (wherever applicable) will be as per terms
and conditions of this contract.
14.4. The contractor during commissioning of the equipment will also impart training to
the employees of consignee for operation and maintenance of machine/equipment supplied.
14.5. Unless mentioned otherwise in the specification of tendered item, the contractor is
required to provide 2 (two) copies of operation & maintenance manual and the list of
mandatory & recommended spares of the Machine/Equipment.
ISSUED BY:
PRINCIPAL CHIEF MATERIALS MANAGER

EAST CENTRAL RAILWAY, HAJIPUR
DIST. VAISHALI (BIHAR), PIN – 844101

SECTION- IV: IRS CONDITIONS OF CONTRACT
Note: The IRS Conditions of Contract are issued by Ministry of Railways (Railway Board) and any
amendments as applicable on the date of opening of tender shall be applicable to the contract against
this tender.
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)
INDIAN RAILWAY STANDARD CONDITIONS OF CONTRACT
0100 Definitions and Interpretation :
“E-Tender” means Tender document duly uploaded on Railway’s authorized website:

www.ireps.gov.in
0101 In the Contract, unless the context otherwise requires;
0102 “Acceptance of Tender” means the letter of memorandum communicating to the Contractor
the acceptance of his tender and includes an advance acceptance of his tender;
0103 “Consignee” means where the stores are required by the acceptance of tender to be dispatched
by rail, road, air or steamer, the person specified in the Acceptance of Tender to whom they are to be
delivered at the destination; Where the Stores are required by the acceptance of tender to be delivered
to a person as an interim consignee for the purpose of dispatch to another person, such other persons;
and in any other case the person to whom the stores are required by the acceptance of tender to be
delivered in the manner therein specified.
0104 “Contract” means and includes the invitation to tender, instructions to tenderers, acceptance
of tender, Standard Conditions of Contract, Special Conditions of Contract, particulars and the other
conditions specified in the acceptance of tender and includes a repeat order which has been accepted
or acted upon by the contractor and a formal agreement if executed;
0105 The “Contractor” means the person, firm or company with whom the order for the supply is
placed and shall be deemed to include the contractor's successors (approved by the Purchaser),
representatives, heirs, executors and administrators as the case may be, unless excluded by the terms
of the contract.

0106 The “Sub-contractor” means the person, firm or company from whom the Contractor may
obtain any material or fittings to be used in the supply or manufacture of the stores;
0107 “Drawing” means the drawing or drawings specified in or annexed to the Schedule or
Specifications
0108 “Government” means the Central Government or a State Government, as the case may be;
0109 The “Inspecting Officer” means the person specified in the contract for the purpose of
Inspection of stores or works under the contract and includes his authorized representative;
0110 “Material” means anything used in the manufacture or fabrication of the stores
0111 “Particulars” include-
(a) Specifications
(b) Drawings
(c) Pattern bearing the seal and signature of the Inspecting Officer (hereinafter called the
sealed pattern) which shall include also a certified copy thereof sealed by the Purchaser for
the guidance of the Inspecting Officer;
(d) Sample sealed by the Purchaser for guidance of the Inspecting Officer (hereinafter
called the certified sample) which shall include a certified copy thereof sealed by the
Purchaser for the guidance of the Inspecting Officer;
(e) Trade pattern, that is to say, a pattern, stores conforming to which are obtainable in
the open market and which denotes a standard of the Indian Standard Institute or other
standardizing authority or a general standard of the industry;
(f) “Proprietary mark” or “Brand” means the mark or brand of a product which is owned
by an industrial firm;
(g) Any other details governing the construction, manufacture or supply of stores as may
be prescribed by the contract;
0112 “Purchase Officer” means the officer signing the acceptance of tender and includes any
officer who has authority to execute the relevant contract on behalf of the Purchaser
0113 The “ Purchaser ” means the President of India in the case of stores ordered for the Indian
Government Railways and includes his successors and assignees
0114 “Digitally Signed E-Bid ” means online offer form including rate page filled in and submitted
online after digitally signing the same by the authorized vendor, with a valid digital signature
certificate as per Information Technology Act, 2000.
0115 “Site” means the place specified in the contract at which any work is required to be executed
by the contractor under the contract or any other place approved by the Purchaser for the purpose.
0116 “Stores” means the goods specified in the contract which the contractor has agreed to supply
under the contract.
0117 “Supply Order” means an order for supply of stores and includes an order for performance of
service.
0118 “Test” means such test as is prescribed by the particulars or considered necessary by the
Inspecting Officer whether performed or made by the Inspecting Officer or any agency acting under
the direction of the Inspecting officer.

0119 “Unit” and “Quantity” means the unit and quantity specified in the contract.
0120 “Writing” or “Written” includes matter either in whole or in part, in manuscript, type-
written, lithographed, cyclostyled, photographed or printed under or over signature or seal, as the case
may be.
0121 The delivery of the stores shall be deemed to take place on delivery of the stores in
accordance with the terms of the contract, after approval by the Inspecting Officer if so provided in
the contract to:
(a) The consignee at his premises ; or
(b) where so provided the interim consignee at his premises , or
(c) a carrier or other person named in the contract for the purpose of transmission to the
consignee, or
(d) The consignee at the destination station in case of contract stipulating for delivery of
stores at destination station.
0122 Words in the singular include the plural and vice versa
0123 Words importing the masculine gender shall be taken to include the feminine gender and
words importing persons shall include any company or association or body of individuals, whether
incorporated or not;
0124 The heading of these conditions shall not affect the interpretation or construction thereof.
0125 Terms and expression not herein defined shall have the meanings assigned to them in the
Indian Sale of Goods Act, 1930 (as amended), or the Indian Contract Act, 1872 (as amended) or the
General Clauses Act, 1897 (as amended), as the case may be.
0200 Parties:
The parties to the contract are the Contractor and the Purchaser, as defined in Clauses 0105 and 0113.
0201 Authority of person signing the Contract on behalf of the Contractor:
A person signing the tender or any other document in respect of the Contract on behalf of the
Contractor without disclosing his authority to do so shall be deemed to warrant that he has authority to
bind the Contractor. If it is discovered at any time that the person so signing has no authority to do so,
the Purchaser may, without prejudice to any other right or remedy of the Purchaser, cancel the
contract and make or authorize the making of a purchase of the stores at the risk and cost of such
person and hold such person liable to the Purchaser for all costs and damages arising from the
cancellation of the contract including any loss which the Purchaser may sustain on account of such
purchase. The provisions of Clause 0700 shall apply to every such purchase as far as applicable.
0202 Address of the Contractor and notices and communications on behalf of the Purchaser:
(a) For all purposes of the contract, including arbitration there under, the address of the
Contractor mentioned in the tender shall be the address to which all communications addressed to the

Contractor shall be sent, unless the Contractor has notified change by a separate letter containing no
other communication and sent by registered post acknowledgement due to the Purchaser. The
Contractor shall be solely responsible for the consequence of an omission to notify a change of
address in the manner aforesaid.
(b) Any communication or notice on behalf of the Purchaser in relation to the contract may be
issued to the Contractor by the Purchase Officer and all such communications and notices may be
served on the Contractor either by registered posts or under certificate of posting or by ordinary post
or by hand delivery at the option of such officer.
0300 Quotations of rates by Contractors:
(a) The price quoted by the Contractor shall not be higher than the controlled price fixed by law
for the stores or where there is no controlled price, it shall not exceed the prices or contravenes the
norms for fixation of prices laid down by Government or where no such prices or norms have been
fixed by the Government, it shall not exceed the price appearing in any agreement relating to price
regulation by any industry in consultation with the Government.
In any case, save for special reasons stated in the tender, the price quoted shall not be higher than the
lowest price charged by the Contractor for stores of the same nature, class or description to a private
purchaser, domestic or foreign as well as Purchaser Governments.
(b) If the price quoted is higher than the controlled price or where there is no controlled price,
the price usually charged by the Contractor from a private Purchaser, domestic or foreign, as well as
Purchaser Government for the stores of the same nature, class or description the Contractor will
specifically mention this fact in his tender giving reasons for quoting higher price(s). If he fails to do
so or makes any mis-statement, it shall be lawful for the Purchaser :
i) to revise the price at any stage so as to bring it in conformity with the Sub-clause (a) above or
ii) to terminate the contract and forfeit the Security Deposit.
0400 Contract
0401 This contract is for the supply of the stores of the description, specifications and drawings,
and in the quantities set forth in the contract on the date or dates specified therein. Unless otherwise
specified, the stores shall be entirely brand new and of the best quality and workmanship to the
satisfaction of the Inspecting Officer. The stores shall further be in all respects acceptable to the
Inspecting Officer.
0402 Any variation or amendment of the contract shall not be binding on the Purchaser unless
and until the same is duly endorsed on the contract incorporated in a formal instrument or in exchange
of letters and signed by the parties.
0500 Security Deposit
0501 Unless otherwise agreed between the Purchaser and the contractor, the contractor shall, within
14 days of posting of written notice of acceptance to the contractor, deposit with the Railway

concerned (in cash or the equivalent in Government Securities or approved Banker's Guarantee Bond)
a sum equal to 5 per cent of the total value of the stores detailed in the contract for which, the tender
has been accepted. Security Deposit should remain valid for a minimum period of 60 days beyond the
date of completion of all the contractual obligations of the supplier.
0502 If the contractor, having been called upon by the Purchase to furnish security Deposit fails to
make and to maintain a security deposit within the specified period, it shall be lawful for the
Purchaser:
a) to recover from the Contractor the amount of such security deposit by deducting the
amount from the pending bills of the contractor under the contract or any other contract with
the purchaser or the Government or any person contracting through the Purchaser or
otherwise however,
b) to cancel the contract or any part thereof and to purchase or authorizethe purchase of
the stores at the risk and cost of the contractor and in that event the provisions of Clauses
0702 shall apply as far as applicable.
0503 No claim shall lie against the Purchaser in respect of interest on cash deposits or Government
Securities or depreciation thereof.
0504 The Purchaser shall be entitled and it shall be lawful on his part to forfeit the said security
deposit in whole or in part in the event of any default, failure or neglect on the part of the Contractor
in the fulfillment or performance in all respects of the contract under reference or any other contract
with the Purchaser or any part thereof to the satisfaction of the Purchaser and the Purchaser shall also
be entitled to deduct from the said deposits any loss or damage which the Purchaser may suffer or be
put by reason of or due to any act or other default, recoverable by the Purchaser from the Contractor
in respect of the contract under reference or any other contract and in either of the events aforesaid to
call upon the contractor to maintain the security deposits at its original limit by making further
deposit, provided further that the Purchaser shall be entitled to recover any such claim from any sum
then due or which at any time thereafter may become due to the Contractor under this or any other
contracts with the Purchaser.
0600 Delivery:
0601 The Contractor shall as may be required by the Purchaser either deliver free or FOR or CIF at
the place/places detailed in the contract, the quantities of the stores detailed therein and the stores
shall be delivered or dispatched not later than the date specified in the contract. The delivery will not
be deemed to be complete until and unless the stores are inspected and accepted by the Inspecting
Officer as provided in the contract.
0602 The Purchaser shall not be liable to render assistance to the Contractor in securing or to
arrange for or provide transport to the Contractor unless it is so specifically stated in the contract,
notwithstanding that transport of the stores, is controlled by or under the orders of the Government.
0603 Notwithstanding any inspection and approval by the Inspecting Officer on the Contractor's
premises, property in the stores shall not pass on to the Purchaser until the stores have been received,
inspected and accepted by the consignee.

0604 No stores shall be deliverable to the consignee's depots on Sundays and public holidays
without the written permission of the consignee.
0700 Time for and Date of Delivery; the Essence of the Contract
The time for and the date specified in the contract or as extended for the delivery of the stores shall be
deemed to be of the essence of the contract and delivery must be completed not later than the date(s)
so specified or extended.
0701 Progressing of Deliveries:
The Contractor shall allow reasonable facilities and free access to his works and records to the
Inspecting Officer, Progress Officer or such other Officer as may be nominated by the Purchaser for
the purpose of ascertaining the progress of the deliveries under the contract.
0702 Failure and Termination
If the Contractor fails to deliver the stores or any installment thereof within the period fixed for such
delivery in the contract or as extended or at any time repudiates the contract before the expiry of such
period the Purchaser may without prejudice to his other rights:
(a) recover from the Contractor as agreed liquidated damages and not by way of penalty a
sum equivalent to 0.5 per cent of the price of the stores (including elements of taxes,
duties, freight, etc.) which the Contractor has failed to deliver within the period fixed
for delivery in the contract or as extended for each week or part of a week during which
the delivery of such stores may be in arrears where delivery thereof is accepted after
expiry of the aforesaid period, or
(b) Risk Purchase clause is deleted for all orders where Security deposit has been obtained.
In case of failure of contract, Security Deposit shall be forfeited. Such failure shall be
recorded & will be considered by Railways on merit in future cases. In such cases, the
quantities unsupplied shall be procured independently without risk and cost of the
original firm/supplier. Adverse performance of such firms will be recorded and
intimated to the approving authority and also to be taken into account in future tender
cases on merit. Such cases which are not covered under) above, Risk Purchase
provisions shall continue for them as per existing guideline as given below.
(c) The Purchaser reserves the right to purchase or authorise the purchase of the stores
not so delivered or others of a similar description (where stores exactly complying with
particulars are not in the opinion of the Purchaser, which shall be final, readily
procurable) at the risk and cost of the Contractor. It shall, however, be in the discretion
of the purchaser to collect or not, Security Deposit from the firm(s) on whom the
contract is placed at the risk and expense of the defaulted firm.
(d) Where action is taken under Sub-clause (c) above, the Contractor shall be liable for any
loss which the Purchaser may sustain on that account provided the purchase or if there
is an agreement to purchase 1 such agreement is made, in case of failure to deliver the
stores within the period fixed for such delivery in the contract or as extended within six

months from the date of such failure and in case of repudiation of the contract before the
expiry of the aforesaid period of delivery, within six months from the date of
cancellation of the contract. The Contractor shall not be entitled to any gain on such
purchase and the manner and method of such purchase shall be in the entire discretion
of the Purchaser. It shall not be necessary for the Purchaser to serve a notice of such
purchase on the Contractor.
Note :
In respect of the stores which are not easily available in the market and where procurement difficulties
are experienced the period for making risk purchase shall be nine months instead of six months
provided above.
0703 Consequence of Rejection

If on the stores being rejected by the Inspecting Officer or Interim Consignee or Consignee
at the destination, the Contractor fails to make satisfactory supplies within the stipulated period of
delivery, the Purchaser shall be at liberty to :
(i) require the Contractor to replace the rejected stores forthwith but in any event not later than
a period of 21 days from the date of rejection and the Contractor shall bear all cost of such
replacement including freight, if any, on such replacing and replaced stores but without being entitled
to any extra payment on that or any other account, or
(ii) purchase or authorize the purchase of quantity of the stores rejected or others of a similar
description (when stores exactly complying with particulars are not in the opinion of the Purchaser,
which shall be final, readily available) without notice to the Contractor at his risk and cost and
without affecting the Contractor's liability as regards the supply of any further installment due under
the contract, or
(iii) Cancel the contract and purchase or authorize the purchase of the stores or others of a
similar description (when stores exactly complying with particulars are not, in the opinion of the
Purchaser, which shall be final, readily available) at the risk and cost of the Contractor. In the event of
action being taken under Sub-clause (ii) above or under this Sub-clause, the provision of Clause 0702
above will apply as far as applicable.
(iv) where under the contract the price payable is fixed F.O.R despatching station, the
Contractor shall, if the stores are rejected at destination by the consignee, be liable, in addition to his
other liabilities, including refund of price recoverable in respect of the stores so rejected, to reimburse
to the Purchaser the freight and all other expenses incurred by the Purchaser in this regard.
0800 Extension of time for delivery
If such failure as aforesaid shall have arisen from any cause which the Purchaser may admit as
reasonable ground for extension of time, the Purchaser shall allow such additional time as he
considers to be justified by the circumstance of the case, and shall forgo the whole or such part, as he
may consider reasonable, of his claim for such loss or damage as aforesaid. Any failure or delay on
the part of sub-contractor, though their employment may have been sanctioned under Condition 1500
hereof, shall not be admitted as a reasonable ground for any extension of time or for exempting the
Contractor from liability for any such loss or damage as aforesaid.

0900 Examination of Drawing, Specifications and Patterns
When tenders are called for in accordance with a drawing, specification or sealed pattern the
Contractor's tenders to supply in accordance with such drawing, specifications or sealed pattern shall,
be deemed to be an admission on his part that he has fully acquainted himself with the details thereof
and, in no circumstances, will any claim on his part which may arise on account of his insufficient
examination of the said drawing, specification or scaled pattern, be considered.
1000 Mistakes in Drawing
The Contractor shall be responsible for and shall pay for any alterations for the works due to any
discrepancies, errors or omissions in the drawings or other particulars supplied by him whether such
drawings or particulars have been approved by the Purchaser or not provided that such discrepancies,
errors or omissions be not due to inaccurate information or particulars furnished to the Contractor on
behalf of the Purchaser. If any dimension figure upon a drawing or plan differ from those obtained by
scaling the drawing or plan, the dimensions as figured upon the drawing or plan shall be taken as
correct.
1100 Samples
1101 Advance Sample:
Where an advance sample is required to be approved under the terms of the contract, the Contractor
shall submit the sample free of cost to the Inspecting Officer within the time specified in the
acceptance of tender. If the Contractor is unable to do so, he must apply immediately to the Office
issuing the acceptance of tender for extension of time stating the reasons for the delay. If the
Purchaser is satisfied that a reasonable ground for an extension of time exists, he may allow such
additional time as he considers to be justified (and his decision shall be final) with or without
alteration in the delivery period stipulated in the acceptance of tender and on such conditions as he
deems fit. In the event of the failure of the Contractor to deliver the advance sample by the date
specified in the acceptance of tender or any other date to which the time may be extended as aforesaid
by the Purchaser or of the rejection of the sample, the Purchaser shall be entitled to cancel the contract
and, if so desired, purchase or authorize the purchase of the stores at the risk and cost of the
Contractor, in which case the provisions of Clause 0700 shall apply as far as applicable.
1102 Unless otherwise provided in the contract, all samples required for test shall be supplied by
the Contractor free of cost. Where sample, which is supplied free, is rejected after examination and
test, the same or whatever remains of the sample, after examination and test will be returned to the
Contractor at his request and cost within three months of the date of such rejection at public tariff rate
at Owner's risk.
1103 Samples submitted shall be clearly labeled with the Contractor's name and address and the
acceptance of tender number.
1104 If the Contractor submits a sample whether with, before or after the tender, the same shall
not govern the standard of supply except when it has been specifically stated so in the acceptance of
tender.

1105 Where under the contract, the Contractor is required to submit an advance sample, any
expenses incurred by the Contractor on or in connection with the production of stores in bulk, before
the sample has been approved unconditionally, shall be borne by the Contractor and he shall not claim
any compensation in the event of such sample being found unacceptable by the Inspecting Officer.
1106 The rejection of the sample by the Inspecting Authority or Inspecting Officer shall be final
and binding on the Contractor.
1107 Where the contract does not require any advance sample to be approved, the Contractor
may before proceeding with bulk manufacture or delivery of the stores, if he so desires, submit to the
Inspecting Officer for inspection a sample of the stores in which case a quantity not less than one per
cent of the total quantity to be supplied unless otherwise authorized by the Inspecting Officer shall be
submitted. The Contractor shall not, however, be entitled to be shown any consideration or give any
extension of time or claim to be exonerated from completing the delivery within the stipulated period
only on the ground of delay in the approval of any such sample.
1108 If, under the contract supplies are governed by a sealed pattern the Contractor shall be bound
to examine such pattern before preparing a sample or manufacturing the stores in bulk as the case may
be.
1109 Loan of Samples:

If a certified sample is lent to the Contractor; it will bear a label containing inter alia variations known
to the Inspecting Officer between the said sample and the stores desired. If the Contractor finds any
further variation between the certified sample and the particulars of specifications mentioned in the
contract he shall at once refer the matter to the Inspecting Officer and the Contractors shall also give
intimation of such discrepancy to the Purchase Officer. The Contractor shall follow the instructions of
the Inspecting Officer as to what sample of particulars should guide the production of stores and the
decision of the Inspecting Officer in the matter shall be final and binding on the Contractor.
1110 The Contractor shall not detach the said label from the certified sample and if for any
reasons they said label gets detached the Contractor shall at once return the certified sample to the
Inspecting Officer for attaching a fresh label.
1200 Risk of Loss or Damage to Government or Purchaser's Property
1201 All the property of the Government or Purchaser loaned whether with or without deposit on
terms and conditions to be separately agreed upon in respect of each particular contract to the
Contractor in connection with the contract shall remain the property of the Government or the
Purchaser, as the case may be. The Contractor shall use such property for the purpose of the execution
of the contract and for no other purpose whatsoever.
1202 All such property shall be deemed to be in good condition when received by the Contractor
unless he shall have within twenty-four hours of the receipt thereof notified the Purchase Officer to
the contract. If the Contractor fails to notify any defect in the condition or quality of such property he
shall be deemed to have lost the right to do so at any subsequent stage.
1203 The Contractor shall return all such property and shall be responsible for the full value
thereof to be assessed by the Purchaser whose decision shall be final and binding on the Contractor.

The Contractor shall be liable for loss or damage to such property from whatever cause happening
while such property is in the possession of or under the control of the Contractor, his servants,
workmen, or agents.
1204 Where such property is insured by the Contractor against loss or fire at the request of the
Government or Purchaser such insurance shall be deemed to be affected by way of additional
Precaution and shall not prejudice the liability of the Contractor as aforesaid.
1300 Inspection by Inspecting Officer
1301 (a) When inspection during manufacture or before delivery or despatch is required,
notice in writing shall be sent by the Contractor to the Inspecting Officer when the stores or material
to be supplied are ready for inspection and test, and no stores shall be delivered or despatched until
the Inspecting Officer has certified in writing that such stores have been inspected and approved by
him.
1301(b) In cases where the Inspecting Authority specified in the contract requires on behalf of the
Purchaser that inspection of the raw materials to be used and /or stage inspection during the
manufacturing process of the component/stores, etc. is also to be done, notice in writing shall be sent
by the Contractor to the Inspecting Officer to visit his premises/works to test the raw materials and/or
conduct necessary inspection during the manufacturing process of the component / stores, etc. as
deemed essential.
1302 Marking of Stores:
The Contractor shall, if so required, at his own expense, mark all the approved stores with a
recognized Government or Purchaser's mark. The stores which cannot be so marked shall, if so
required by the Inspecting Officer, be packed at his own expense in suitable packages or cases, each
of which shall be sealed and marked with such mark. The Inspecting Officer shall also have power to
mark the rejected stores with a rejection mark so that they may be easily identified, if resubmitted for
inspection.
1303 Facilities for test and Examination:
The Contractor shall, at his own expense afford to the Inspecting Officer all reasonable facilities as
may be necessary for satisfying himself, that the stores are being and/or have been manufactured in
accordance with the particulars. The Inspecting Officer shall have full and free access at any time
during the execution of the contract to the Contractor's work for the purpose aforesaid, and he may
require the Contractor to make arrangements for inspection of the stores or any part thereof or any
material at his premises or at any other place specified by the Inspecting Officer and if the Contractor
has been permitted to employ the services of a Sub-Contractor, he shall in his contract with the Sub-
Contractor, reserve to the Inspecting Officer a similar right.
1304 Cost of Test:
The Contractor shall provide, without any extra charge, all materials, tools, labour and assistance of
every kind which the Inspecting Officer may demand of him for any test and examination, other than

special or independent test, which he shall require to make on the Contractor's Premises and the
Contractor shall bear and pay all costs attendant thereon. If the Contractor fails to comply with the
conditions aforesaid, the Inspecting Officer shall, in his sole judgement, be entitled to remove for test
and examination all or any of the stores manufactured by the Contractor to any premises other than his
(Contractor's) and in all such cases the Contractor shall bear the cost of transport and/or carrying out
such tests elsewhere. A certificate in writing of the Inspecting Officer that the Contractor has failed to
provide the facilities and the means, for test examination shall be final.
1305 Delivery of Stores for Test:
The Contractor shall also provide and deliver for test, free of charge, at such place other than his
premises as the Inspecting Officer may specify, such material or stores as he may require.
1306 Liability for Costs of Special or Independent Test:
In the events of rejection of stores or any part thereof by the Inspecting Officer in the consequence of
the sample which is removed to the laboratory or other places of test, being found on test not in
conformity with the Contract and in the event of the failure of the Contractor for any reason to deliver
the stores passed on test within the stipulated period, the Contractor shall, on demand pay to the
Purchaser all costs incurred in the inspection and/or test. Cost of test shall be assessed at the rate
charged by the laboratory to private persons for similar work.
1307 Method of Testing:
The Inspecting Officer shall have the right to put all the stores or materials forming part of the same
or any part thereof to such tests as he may think fit and proper. The Contractor shall not be entitled to
object on any ground whatsoever to the method of testing adopted by the Inspecting Officer.
1308 Stores Expended in Test:
Unless otherwise provided for in the contract if the test proves satisfactory and the stores or any
installment thereof is accepted, the quantity of the stores or materials expended in the test will be
deemed to have been taken delivery of by the Purchaser and be paid for as such.
1309 Powers of Inspecting Officer : The Inspecting Officer shall have the power:
(i) before any stores or part thereof are submitted for inspection to certify that they
cannot be in accordance with the contract owing to the adoption of any unsatisfactory method
of manufacture.
(ii) to reject any stores submitted as not being in accordance with the particulars.
(iii) to reject the whole of the installment tendered for inspection, if after inspection of
such portion thereof as "he may in his discretion think fit, he is satisfied that the same is
unsatisfactory.
(iv) the Inspecting Officer's decision as regards the rejection shall be final and binding on
the Contractor.

1400 Charges for Work Necessary for Completion of the Contract
The Contractor shall pay all charges for handling, stamping, painting, marking, protecting or
preserving patent rights, drawings, templates, models and gauges and for all such measures as the
Purchaser or the Inspecting Officer may deem necessary for the proper completion of the contract,
though special provision therefore may not be made in the specification of drawings.
1500 Responsibility of the Contractor for Executing the Contract
1501 Risk in the Stores:
The Contractor shall perform the contract in all respects in accordance with the terms and conditions
thereof. The stores and every constituent part thereof, whether in the possession or control of the
Contractor, his agents or servants or a carrier, or in the joint possession of the Contractor, his agents
or servants and the Purchaser, his agents or servants, shall remain in every respect at the risk of the
Contractor, until their actual delivery to the consignee at the stipulated place or destination or, where
so provided in the acceptance of tender, until their delivery to a person specified in the contract as
interim consignee for the purpose of despatch to the consignee. The Contractor shall be responsible
for all loss, destruction, damage or deterioration of or to the stores from any cause whatsoever while
the stores after approval by the Inspecting Officer are awaiting despatch or delivery or are in the
course of transit from the Contractor to the consignee or, as the case may be, interim consignee. The
Contractor shall alone be entitled and responsible to make claims against a Railway Administration or
other carrier in respect of non-delivery, short delivery, mis-delivery, loss, destruction, damage or
deterioration of the goods entrusted to such carrier by the Contractor for transmission to the consignee
or the interim consignee as the case may be.
1502 Consignee’s Right of Rejection:
Notwithstanding any approval which the Inspecting Officer may have given in respect of the stores or
any materials or other particulars or the work or workmanship involved in the performance of the
contract (whether with or without any test carried out by the Contractor or the Inspecting Officer or
under the direction of the Inspecting Officer) and not withstanding delivery of the stores where so
provided to the interim consignee, it shall be lawful for the consignee, on behalf of the Purchaser, to
reject the stores or any part, portion or consignment thereof within a reasonable time after actual
delivery thereof to him at the place or destination specified in the contract if such stores or part,
portion or consignment thereof is not in all respects in conformity with the terms and conditions of the
contract whether on account of any loss, deterioration or damage before dispatch or delivery or during
transit or otherwise howsoever.
Note: In respect of materials pre-inspected at the firm's premises the consignee will issue rejection
advice within 90 days from the date of receipt.
1503 Provided that where, under the terms of the contract the stores are required to be delivered to
an interim consignee for the purpose of despatch to the consignee, the stores shall be at the
Purchaser's risk after their delivery to the interim consignee, but nevertheless it shall be lawful for the
consignee on behalf of the Purchaser to reject the stores or any part, portion of consignment thereof
upon their actual delivery to him at the destination if they are not in all respects in conformity with the
terms and conditions of contract except where they have been damaged or have deteriorated in the
course of transit or otherwise after their delivery to the interim consignee.

1504 The provisions contained in Clause 2200 relating to the removal of stores rejected by the
Inspecting Officer shall mutatis mutandis apply to stores rejected by the consignee as herein provided.
Note : In respect of stores inspected during manufacture or before delivery or dispatch at contractor's
premises the consignee will issue communication of rejection within 90 days from the date of actual
delivery thereof.
1505 Subletting and Assignment:
The Contractor shall not, save with the previous consent in writing of the Purchaser, sublet, transfer or
assign the contract or any part thereof or interest therein or benefit or advantage thereof any manner
whatsoever.
In the event of the Contractor's subletting or assigning this contract or any part thereof without such
permission, the Purchaser shall be entitled to cancel the contract and to purchase the stores elsewhere
on the Contractor's account and risk and the Contractor shall be liable for any loss or damage which
the Purchaser may sustain in consequence or arising out of such purpose.
1506 Changes in a Firm
(a) Purchaser, which may be granted only upon execution of a written undertaking by
the new partner to perform the contract and accept all liabilities incurred by the firm
under the contract prior to the date of such undertaking.
(b) On the death or retirement of any partner of the Contractor firm before complete
performance of the contract, the Purchaser may, at his option, cancel the contract and
in such case the Contractor shall have no claim whatsoever to compensation against
the Purchaser.
(c) If the contract is not determined as provided in Sub-clause (b) above notwithstanding
the retirement of a partner from the firm he shall continue to be liable under the
contract for acts of the firm until a copy of the public notice given by him under
Section 32 of the Partnership Act, has been sent by him to the Purchaser by registered
post acknowledgement due.
(d) Consequence of breach :

Should a partner in the Contractor firm commit a breach of Sub-clause 1505 above or
the Contractor should commit a breach of the conditions 1506(a) of this Sub-clause, it
shall be lawful for the Purchaser to cancel the contract and purchase or authorize the
purchase of the stores at the risk and cost of the Contractor and in that event the
provisions of Clauses 0600 and 0700 as far as applicable shall apply.
(e) The decision of the Purchaser as to any matter or thing concerning or arising out of
this sub-clause or on any question whether the Contractor or any partner of the
Contractor firm has committed a breach of any of the conditions in this sub-clause
contained shall be final and binding on the Contractor.

1507 Assistance to the Contractor
(a) The Contractor shall be solely responsible to procure any material or obtain any import or
other license or permit required for the fulfillment of the contract and the grant by the
Purchaser or any other authority of a quota certificate or permit required under any law for
distribution or acquisition of iron and steel or any other commodity or any other form of
assistance in the procurement of the material aforesaid or any attempt to render assistance in
the matter aforesaid, or shall not be construed as a representation on the part of the Purchaser
that the material covered by such license or permit or quota certificate is available or
constitute any promise, undertaking or assurance on the part of the Purchaser regarding the
procurement of the same or effect any variation in the rights and liabilities of the parties under
the contract. But, if by reason of any such assistance as aforesaid, the Contractor obtains any
materials at less than their market price or the cost of production of the stores is lowered the
price of the stores payable under the contract shall be reduced proportionately, and the extent
of such reduction shall be determined by the Purchaser whose decision shall be final and
binding on the Contractor.
(b) Every effort made by the Purchaser to supply, or give assistance in the procurement of
materials, whether from the Government stock or by purchase under a permit or release order
issued by or on behalf of or under authority from Government or by any officer empowered in
that behalf by law or under other arrangements made by the Purchaser shall be deemed to be
subject to the condition that it will be performed with due regard to the other demands and
only if it is found practicable to do so within the stipulated time and the decision of the
Purchaser whether it was practicable to supply or give assistance as aforesaid or not shall be
final and binding on the Contractor.
1601 Use of Raw Materials secured with Government Assistance
(a) Where any raw material is procured for the execution of a contract with the assistance
of the Government rendered in the form of permit, or license or quota certificate/essentiality
certificate or release order issued by or on behalf of or under the authority of the Government
or by an officer empowered in that behalf, or
(b) where the raw material is issued to the Contractor from Government stock, or
(c) where advance payments are made to the Contractor to enable him to purchase the raw
material, or
(d)Where raw material is arranged by the Government,
the Contractor:-
(i) shall hold such material as trustee for the Government,
(ii) Shall use such material economically and solely for the purpose of the contract.
(iii) shall not dispose of the same without the previous permission in writing of the Purchaser, and
(iv) shall render due account of such material and return to the Government at such place as the
purchaser may direct all surplus or unserviceable material that may be left after the
completion of the contract or its termination for any reason whatsoever.

On returning such material, the Contractor shall be entitled to such price therefore as the Purchaser
may fix, having regard to the condition of such material.
1602 Where the contract is terminated due to any default on the part of the Contractor, the
Contractor shall pay all transport charges incurred for returning any material up to such destination as
may be determined by the Purchaser and the decision of the Purchaser in that behalf shall be final and
binding on the Contractor.
1603 If the Contractor commits breach of any of the conditions in this clause specified, he shall,
without prejudice to any other liability, penal or otherwise, be liable to account to the Government for
all moneys, advantages or profits accruing from or which, in the usual course, would have accrued to
him by reason of such breach.
1604 Where the stores manufactured or fabricated by the Contractor out of the material arranged
or procured by or on behalf of the Government are rejected, the Contractor shall, without prejudice to
any other right or remedy of the Government, pay to the Government, on demand, the cost price or
market value of all such materials whichever is greater.
1700 Indemnity
1701 The Contractor shall at all times indemnify the Purchaser against all claims which may be
made in respect of the stores for infringement of any right protected by patent, registration of designs
or trade mark. Provided always that in the event of any claim in respect of alleged breach of letters
patent, registered designs or trade mark being made against the Purchaser, the Purchaser shall notify
the Contractor of the same and the Contractor shall, at his own expense, either settle any such dispute
or conduct any litigation that may arise there from.
1702 The Contractor shall not be liable for payment of any royalty, license fee or other expenses in
respect of or for making use of patents or designs with respect to which he is according to the terms of
the contract, to be treated as an agent of the Government for the purpose of making use of patent or
trade mark for fulfillment of the contract.
1800 Packing
1801 The Contractor shall pack at his own cost the stores sufficiently and properly for transit by
rail/road, air and/or sea as provided in the contract so as to ensure their being free from loss or
damage on arrival at their destination.
1802 Unless otherwise provided in the contract all containers (including packing cases, boxes,
tins, drums and wrappings) in which the stores are supplied by the contractor, shall be considered as
non-returnable and their cost as having been included in the contract price.
1803 If the contract provides that the containers shall be returnable, they must be marked
“Returnable” and they will be returned to the Contractor as per terms of the contract.
1804 If the contract provides that returnable containers shall be separately charged, they shall be
invoiced by the Contractor at the price specified in acceptance of tender. In such cases, the Contractor
shall give full credit for the invoiced amount if the containers are returned to the Contractor. Return of

containers shall be made within a reasonable time and in the event of any dispute or difference arising
as to whether the containers were so returned, the decision of the Purchaser thereon shall be final and
binding and the Purchaser may, in his discretion award, such compensations as may in his opinion be
proper for any undue delay in returning the containers.
1805 Each bale or package delivered under the contract shall be marked by the Contract or at his
own expense. Such marking shall be distinct (all previous irrelevant marking being carefully
obliterated) and shall clearly indicate the description and quantity of the stores, the name and address
of the Consignee, the gross weight of the package and the name of the Contractor with a distinctive
number or mark sufficient for the purpose of identification. All markings shall be carried out with
such material as may be found satisfactory by the Inspecting Officer as regards quickness of drying,
fastness and indelibility.
1806 The Inspecting Officer may reject the stores if the stores are not packed/or marked as
aforesaid and in case where the packing materials are separately prescribed, if such materials are not
in accordance with the terms of the contract. Such rejection of the stores by the Inspecting Officer
shall be final and binding on the Contractor.
1807 Each bale or package shall contain a packing note specifying the name and address of the
Contractor, the number and date of the acceptance of tender or supply order and the designation of the
Purchase Officer issuing the supply order, the description of the stores and the quantity contained in
such bale or package.
1900 Notification of Delivery:
Notification of delivery or despatch in regard to each and every installment shall be made to the
consignee and to the indentor immediately on despatch or delivery. The Contractor shall further
supply to the consignee, or the interim consignee, as the case may be, a packing account Quoting
number of the acceptance of tender and/or supply or repeat and date of despatch of the stores. All
packages, containers, bundles and loose materials part of each and every installment shall be fully
described in the packing account and full details of the contents of the packages and quantity of
materials shall be given to enable the consignee to check the stores on arrival at destination. The
Railway Receipt/Consignment Note or Bill of Lading, if any, shall be forwarded to the consignee by
registered post immediately on the dispatch of stores.
The Contractor shall bear and reimburse to the Purchaser demurrage charges, if any, paid by reason of
delay on the part of the Contractor in forwarding the Railway Receipt, Consignment Note or Bill of
Lading.
2000 Progress Reports:
2001 The Contractor shall from time-to-time, render such reports concerning the progress of the
contract and/or supply of the stores in such form as may be required by the Purchaser.
2002 The submission, receipt and acceptance of such reports shall not prejudice the rights of the
Purchaser under the contract, nor shall operate as an estoppel against Purchaser merely by reason of
the fact that he has not taken notice of/or subjected to test any information contained in such report.

2100 Freight
The stores shall be dispatched at public tariff rates. In the case of FOR station of dispatch contract, the
stores shall be booked by the most economical route or most economical tariff available at the time of
dispatch as the case may be. Failure to do so will render the Contractor liable for any avoidable
expenditure caused to the Purchaser. Where alternative routes exist, the Purchaser shall, if called upon
to do so, indicate the most economical route available, or name the authority whose advice in the
matter shall be taken and acted upon. If any advice of any such authority is sought, his decision or
advice in the matter shall be final and binding on the Contractor,
2200 Removal of Rejected Stores
2201 On rejection of all stores submitted for inspection at a place other than the premises of the
Contractor, such stores shall be removed by the Contractor at his own cost subject as hereinafter
stipulated, within 21 days of the date of intimation of such rejection. If the concerned communication
is addressed and posted to the Contractor at the address mentioned in the contract, it will be deemed to
have been served on him at the time when such communication would be in the course of ordinary
post reach the Contractor. Provided that the Inspecting Officer may call upon the Contractor to
remove dangerous, infected or perishable stores within 48 hours of the receipt of such communication
and the decision of the Inspecting Officer in this behalf shall be final in all respects. Provided further
that where the price or part thereof has been paid, the consignee is entitled without prejudice to his
other rights to retain the rejected stores till the price paid for such stores is refunded by the Contractor
save that such retention shall not in any circumstances be deemed to be acceptance of the stores or
waiver of rejection thereon.
2202 All rejected stores shall in any event and circumstances remain and always be at the risk of
the Contractor immediately on such rejection. If such stores are not removed by the Contractor within
the periods aforementioned, the Inspection Officer may remove the rejected stores and either return
the same to the contractor at his risk and cost by such mode of transport as the Purchaser or Inspecting
Officer may decide, or dispose of such stores at the Contractor's risk and on his account and retain
such portion of the proceeds, if any from such disposal as may necessary to recover any expense
incurred in connection with such disposals (or any price refundable as a consequence of such
rejection). The Purchaser shall, in addition, be entitled to recover from the Contractor ground
rent/demurrage charges on the rejected stores after the expiry of the time limit mentioned above.
2203 The stores that have been despatched by rail and rejected after arrival at destination may be
taken back by the Contractor either at the station where they were rejected or at the station from
which they were sent, after refunding the price paid for such stores and other charges refundable as a
consequence of such rejection. If the contract placed for delivery f o. r. station of despatch, the
Contractor shall pay the carriage charges on the rejected consignment at public tariff rates from the
station of despatch to the station where they are rejected. If the Contractor elects to take back the
goods at the station from which they were despatched, the goods shall in addition, be booked back to
him freight to pay at public tariff rates and at owner's risk. The Contractor shall be liable to reimburse
packing and incidental costs and charges incurred in such return or rejected stores in addition to other
charges refundable as a consequence of rejection. The goods shall remain the property of the
Contractor unless and until accepted by the Purchaser, after inspection.

2300 System of Payment
2301 Unless otherwise agreed upon between the parties, payment for delivery of the stores will be
made on submission of bills in the prescribed form which may be obtained from the Purchase Officer
in accordance with the instructions given in the Acceptance of Tender, by a cheque or demand draft
on a branch of the Reserve Bank of India or State Bank of India transacting government business as
may be decided by the Purchaser.
2302 Payment for the stores or for each consignment thereof will be made to the Contractor on
submission of bills accompanied by required document in accordance with the following procedure in
contracts where such a facility to the Contractor has specifically been agreed to by the Purchaser:
(a) 95% payments for the stores or each consignment thereof will be made to the firms against
proof of inspection and dispatch. The original railway receipt should be sent to the Accounts
Officer responsible for payment along with 95% bill advising the particulars of dispatch to the
consignee. The Accounts Officer after passing the 95 % bill should pass on the original
railway receipt to the consignee for taking delivery of the consignment. It should, however, be
ensured that there is no delay in the Accounts Office transmitting the original railway receipt
to the consignee.
(b) The balance of 5% shall be paid on receipt of the stores or each consignment thereof in
accordance with the terms of the contract in good condition by the consignee, with a
certificate to that effect endorsed on the copy of the Inspection Note by the Consignee which
shall accompany the bill submitted by the Contractor.
(c) In the case of F.O.B. & C. & F. contract 95 per cent of the price will be paid on presentation
of shipping documents and inspection certificate and the remaining 5 per cent on receipt of
the stores in accordance with the terms of the contract in good condition by the Consignee,
and on producing the certificate of such receipt endorsed on one copy of the Inspection Note
by the Consignee, or alternatively at the Contractor’s option, the full value of the stores will
be paid after inspection, on receipt of the consignment in accordance with the terms of the
contract in good condition by the Consignee and on producing a certificate of such receipt
endorsed on one copy of the Inspection Note.
2303 In all other contracts or in contracts where the Inspecting Officer also acts as the interim
consignee or where inspection is carried on by the Consignee himself at destination and in all cases of
local delivery full payment shall be made on submission of “Final 100 percent bill” supported by the
Inspection Certificates and consignee’s receipt as aforesaid to the Accounts Officer concerned.
Note:
(i) The system of 95 percent and 5 percent payment is not applicable to claims amounting to
Rs.1000/- or below.
(ii) In such cases only a single bill for value should he submitted.In the case of Running
Contracts, the system of payment will be similar to the above except that payment would be
98 per cent and 2 per cent instead of 95 per cent and 5 per cent specified above
2400 Withholding and lien in respect of sums claimed
2401 Whenever any claim or claims for payment of a sum of money arises out of or under the
contract against the Contractor, the Purchaser shall be entitled to withhold and also have a lien to

retain such sum or sums in whole or in part from the security, if any, deposited by the Contractor and
for the purpose aforesaid, the Purchaser shall be entitled to withhold the said cash security deposit or
the security, if any, furnished as the case may be and also have a lien over the same pending
finalization or adjudication of any such claim. In the event of the security being insufficient to cover
the claimed amount or amounts or if no security has been taken from the Contractor, the Purchaser
shall be entitled to withhold and have lien to retain to the extent of the such claimed amount or
amounts referred to supra, from any sum or sums found payable or which at any time-thereafter may
become payable to the Contractor under the same contract or any other contract with the Purchaser or
the Government pending finalization or adjudication of any such claim.
It is an agreed term of the contract that the sum of money or moneys so withheld or retained under the
lien referred to above, by the Purchaser will be kept withheld or retained as such by the Purchaser till
the claim arising out of or under the contract is determined by the Arbitrator (if the contract is
governed by the arbitration clause) or by the competent court as prescribed under clause 2703
hereinafter provided, as the case may be, and that the Contractor will have no claim for interest or
damages whatsoever on any account in respect of such withholding or retention under the lien referred
to supra and duly notified as' such to the Contractor.
2402 For the purpose of Clause 2401, where the Contract or is a partnership firm or a limited
company, the Purchaser shall be entitled to withhold and also have a lien to retain towards such
claimed amount or amounts in whole or in part from any sum found payable to any partner/limited
company, as the case may be, whether in his individual capacity or otherwise.
2403 Lien in respect of Claims in other Contracts
(a) Any sum of money due and payable to the Contractor (including the security deposit
returnable to him) under the contract may withhold or retain by way of lien by the Purchaser or
Government against any claim of the Purchaser or Government in respect of payment of a sum of
money arising out of or under any other contract made by the Contractor with the Purchaser or
Government.
(b) It is an agreed term of the contract that the sum of money so withheld or retained under this
clause by the Purchaser or Government will be kept withheld or retained as such by the Purchaser or
Government till his claim arising out of the same contract or any other contract is either mutually
settled or determined by the arbitrator, if the contract is governed by the arbitration clause or by the
competent court under Clause 2703 hereinafter provided, as the case may be, and that the Contractor
shall have no claim for interest or damages whatsoever on this account or on any other ground in
respect of any sum of money withheld or retained under this clause and duly notified as such to the
Contractor.
2500 Corrupt Practices
2501 The Contractor shall not offer or give or agree to give to any person in the employment of the
Purchaser or working under the orders of the Purchaser any gift or consideration of any kind as an
inducement or reward for doing or forbearing to do or for having done or forborne to do any act in
relation to the obtaining or execution of the contract or any other contract with the Purchaser or
Government or for showing any favour or for bearing to show disfavour to any person in relation to
the contract or any other contract with the Purchaser or Government. Any breach of the aforesaid
condition by the Contractor, or any one employed by him or acting on his behalf (whether with or
without the knowledge of the Contractor) or the commission of any offence by the Contractor or by
any one employed by him or acting on his behalf under IX of the Indian Penal Code, 1860 or the

Prevention of Corruption Act, 1947 or any other act enacted for the prevention of corruption by public
servants shall entitle the Purchaser to cancel the contract and all or any other contracts with the
Contractor and to recover from the Contractor the amount of any loss arising from such cancellation
in accordance with the provisions of Clauses 0600 and 0700.
2502 Any dispute or difference in respect of either the interpretation effect or application or the
above condition or of the amount recoverable there under by the Purchaser from the Contractor, shall
be decided by the Purchaser, whose decision there on shall be final and binding on the Contractor.
2600 Insolvency and Breach of Contract
2601 The Purchaser may at any time, by notice in writing summarily determine the contract
without compensation to the Contractor in any of the following events, that is to say
(a) If the Contractor being an individual or if a firm, any partner thereof, shall at any
time, be adjudged insolvent or shall have a receiving order or order for administration of his
estate made against him or shall take any proceeding for composition under any Insolvency
Act for the time being in force or make any conveyance or assignment of his effects or enter
into any assignment or composition with his creditors or suspend payment or if the firm be
dissolved under the Partnership Act, or
(b) If the Contractor being a company is wound up voluntarily or by the order of a

Court or a Receiver, Liquidator or Manager on behalf of the Debenture-holders is appointed
or circumstances shall have arisen which entitle the Court or Debenture holders to appoint a
Receiver, Liquidator or Manager, or
(c) If the Contractor commits any breach of the contract not herein specifically
provided for.
Provided always that such determination shall not prejudice any right of action or remedy which shall
have accrued or shall accrue thereafter to the Purchaser and provided also the Contractor shall be
liable to pay to the Purchaser for any extra expenditure he is thereby put to and Contractor shall, under
no circumstances, be entitled to any given on re-purchase.
2700 Laws governing the Contract:
2701 This contract shall be governed by the Laws of India for the time being in force.
2702 Irrespective of the place of delivery, the place of performance or place of payment under the
contract, the contract shall he deemed to have been made at the place from which the acceptance of
tender has been issued.
2703 Jurisdiction of courts:
The Courts of the place from where the acceptance of tender has been issued shall alone have
jurisdiction to decide any dispute arising out of or in respect of the contract.
2704 Marking of stores:

The marking of the stores must comply with the requirements of the laws relating to merchandise
marks for the time being in force in India.

2705 Compliance with provisions of Contract Labour (Regulation and Abolition) Act, 1970:
(1) The Contractor shall comply with the provisions of the Contract Labour (Regulation
and Abolition) Act, 1970 and the Contractor Labour (Regulation and Abolition) Central
Rules, 1971, as modified from time-to-time, wherever applicable and shall also indemnify the
Purchaser from and against any claims under the aforesaid Act and the Rules.
(2) The Contractor shall obtain a valid license under the aforesaid Act as modified from
time-to-time before the commencement of the contract and continue to have a valid license
until the completion of the contract. Any failure to fulfill this requirement shall attract the
penal provisions of the contract arising out of the resultant non-execution of the contract.
(3) The Contractor shall pay to labour employed by him directly or through Sub-
Contractors the wages as per provisions of the aforesaid Act and the Rules wherever
applicable. The Contractor shall, notwithstanding the provisions of the contract to the
contrary, cause to be paid the wages to labour indirectly engaged on the contract including
any engaged by his Sub-Contractors in connection with the said contract, as if the labour had
been immediately employed by him.
(4) In respect of all labour directly or indirectly employed in the contract for
performance of the Contractor's part of the contract, the Contractor shall comply with or cause
to be complied with the provisions of the aforesaid Act and the Rules wherever applicable.
(5) In every case in which, by virtue of the provisions of the aforesaid Act or the Rules,
the, Purchaser is obliged to pay any amount of wages to a workman employed by the
Contractor or his Sub-Contractor in execution of the contract or to incur any expenditure in
providing welfare and health amenities required to be provided under the aforesaid Act and
the Rules or to incur any expenditure on account of the contingent liability of the Purchaser
due to the Contractor's failure to fulfill his statutory obligations under the aforesaid Act or the
Rules the Purchaser will recover from the Contractor, the amount of wages so paid or the
amount of expenditure so incurred, and without prejudice to the rights of the Purchaser under
Section 20, Sub-section (2) and Section 21, Sub-section (4) of the aforesaid Act, the
Purchaser shall be at liberty to recover such amount or part thereof by deducting it from the
security deposit and/or from any sum due by the Purchaser to the Contractor whether under
the contract or otherwise. The Purchaser shall not be bound to contest any claim made against
it under Sub-section (i) of Section 20 and Sub-section (4) of Section 21 of the aforesaid Act
except on the written request of the Contractor and upon his giving to the Purchaser fun
security for all costs for which the Purchaser might become liable in contesting such claim.
The decision of the Purchaser regarding the amount actually recoverable from the Contractor
as stated above, shall be final and binding on the Contractor.
2800 The headings of conditions here to shall not affect the construction thereof.
2900 Settlement of Disputes







3000 Fall Clause: Deleted
The contract if and when placed will be subject to following fall clause:—
3001. The price charged for the stores supplied under the Contract by the contractor shall in no
event exceed the lowest price at which the contractor sells the stores or offer to sell stores of identical
description. To any persons/organisations including the purchaser or any Department of the Central
Government or any Railway Office or any Railway Undertaking, as the case may be during the period
till performance of all Supply Orders placed during the currency of the contract is completed. The
lower price will be applicable to supplies made after the date of coming into force of such reduction
or sale or offer to sell at a reduced rate.
3002. If at any time, during the said period the contractor reduces the sale price, sells or offer to sell
such stores to any persons organisation including the purchaser or any Department of Central
Government or any Railway Office or any Railway Undertaking as the case may be at a price lower
than the price chargeable under the contract, he shall forthwith notify such reduction or sale or offer
of sale to the Purchaser and the price payable under the contract for the stores supplied after the date
of coming into force or such reduction or sale or offer of sale shall stand correspondingly reduced.
The above stipulation will, however, not apply to :
(a) Exports by the Contractor
(b) Sale of goods as original equipment at prices lower than the prices charged for normal
replacement.
(c) Sale of goods such as drugs which have expiry dates.
3003. The Contractor shall furnish the following certificate to the concerned Accounts Officer along
with each bill for payment of supplies made against the Rate Contract.
* I/We certify that there has been no reduction in sale price of the stores of description identical to the
stores supplied to the Government under the contract herein and such stores have not been offered/
sold by me/us to any person/organisation including the purchaser or any Department of Central
Government or any Railway Office or any Railway Undertaking as the case may be upto the date of
bill/ the date of completion of supplies against all supply orders placed during the currency of the
contract at a price lower than the price charged to the Government under the contract except for

quantity of stores categories under sub-clauses (a), (b) and (c) of sub-para (ii) above, details of which
are as follows:—
Note.—The contractor will also inform the FA & CAO concerned and the COS as soon as supplies
against all supply order placed against the contract are completed.
3100 Inspection & Rejection

Where under a contract the price payable is fixed on F.O.R. station of dispatch basis, the
Contractor shall, if the consignee rejects the stores at destination be liable in addition to his other
liabilities, to reimburse to the Purchaser the freight paid by the Purchaser.
3101 Notification of Result of inspection:

Unless otherwise provided in the specification of schedule, the examination of the stores
will be made as soon as practicable after the same have been submitted for inspection and the result of
the examination will be notified to the Contractor.
3102 Inspection Notes:
On the stores being found acceptable by the inspecting Officer he shall furnish the
Contractor with necessary copies of Inspection Notes duly completed, for being attached to the
Contractor's bill in support thereof.
3200 Warranty/Guarantee:
3201 The Contractor/Seller hereby covenants that it is a condition of the contract that all
goods/stores/articles furnished to the Purchaser under this contract shall be of the highest grade free of
all defects and faults and of the best materials, quality, manufacture and workmanship throughout and
consistent with the established and generally accepted standards for materials of the type ordered and
in full conformity with the contract specification, drawing or sample, if any and shall, if operable,
operate properly.
3202 The Contractor also guarantees that the said goods/stores/articles would continue to conform
to the description and quality as aforesaid, for a period of 30 months after their delivery or 24 months
from the date of placement in service whichever shall be sooner, and this warranty shall survive
notwithstanding the fact that the goods/stores/articles may have been inspected, accepted and payment
thereof made by the Purchaser.
3203 If during the aforesaid period, the said goods/stores/articles be discovered not to conform to
the description and quality aforesaid or have deteriorated, otherwise that by fair wear and tear the
decision of the Purchaser in that behalf being final and conclusive that the Purchaser will be entitled
to reject the said goods/stores/articles or such portions thereof as may be discovered not to conform to
the said description and quality. On such rejection, the goods/stores/articles will be at the Seller's risk.
If the Contractor/Seller so desires, the rejected goods may be taken over by him or his agents for
disposal such manner as he may deem fit within a period of 3 months from the date of such rejection.
At the expiry of the period, no claim whatsoever shall lie against the Purchaser in respect of the said
goods/stores/articles, which may be disposed of by the Purchaser in such manner as he thinks fit
without prejudice to the generality of the foregoing, all the provisions in the Indian Railways Standard
Conditions of Contract relating to the ‘rejection of stores' and ‘failure' and 'termination' add and
Clause 3100-02 above shall apply.

3204 The Contractor/Seller shall, if required, replace the goods or such portion thereof as have
been rejected by the Purchaser, free of cost, at the ultimate destination, or at the option of the
Purchaser, the Contractor/Seller shall pay to the Purchaser, the value thereof at the contract price and
such other expenditure and damage as may arise by reason of the breach of the conditions herein
before specified. Nothing herein contained shall prejudice any other right of the Purchaser in that
behalf under this contract or-otherwise.
3300 Book Examination Clause:
The Government reserves the right for 'Book Examination' as follows

(i) The Contractor shall whenever called upon and requiring to produce or cause to be produced
for examination by any Government Officer duly authorised in that behalf, any cost or other
account book of account, voucher, receipt, letter, memorandum, paper or writing or any copy
of or extract from any such document and also furnish information any way relating to such
transaction and procedure before the duly authorised Government Officer returns verified in
such manner as may be required relating in any way to the execution of this contract or
relevant for verifying or ascertaining the cost of execution of this contract (the decision of
such Government Officer on the question of relevancy of any document, information of return
being final and binding on the parties).
(ii) The obligation imposed by this clause is without prejudice to the obligation of the contractor
under any statute, rules or orders shall be binding on the Contractor.
(iii) The Contractor shall, if the authorised Government Officer so requires (whether before or
after the prices have been finally fixed), afford facilities to the Government Officer concerned
to visit the Contractors works for the purpose of examining the processes of manufacture and
estimating or ascertaining the cost of production of the articles. If any portion of the work be
entrusted or carried out by a sub-contractor or any of its subsidiary or allied firm or company,
the authorised Government Officer shall have power to examine all the relevant books of such
sub-contractor or any subsidiary or allied firm or company shall be open to his inspection as
mentioned in clause (i).
(iv) If on such examination, it is established that the contracted price is in excess of the actual cost
plus reasonable margin of profit, the Purchaser shall have the right to reduce the price and
determine the amount to a reasonable level
(v) Where a contract provides for book examination clause, the Contractor or its agency is bound
to allow examination of its books within a period of 60 days from the date the notice is
received by the Contractor, or its agencies calling for the production of documents as under
clause (i) above. In the event of Contractor's or his agency's failure to do so, the contract price
would be reduced and determined according to the best judgment of the Purchaser which
would be final and binding on the Contractor and his agencies.
3400 Inspection at the Fag End of the Delivery Period:
In cases where only a portion of the stores ordered is tendered for inspection at the Fag end of the
delivery period and also in cases where inspection is not completed in respect of the portion of the
stores tendered for inspection during the delivery period, the Purchaser reserves the right to cancel the
balance quantity not tendered for inspection within the delivery period fixed in the contractor the risk
and expense of the Contractor without any further reference to him. If the stores tendered for

inspection during or at the fag end of the delivery period are not found acceptable after carrying out
the inspection, the purchaser is entitled to cancel the contract in respect of the same at the risk and
expense of the contractor. If, however, the stores tendered for inspection are found acceptable, the
Purchaser may grant an extension of the delivery period subject to the following conditions:
(i) The Purchaser has the right to recover from the contractor under the provision of clause 0702
(a) of I.R.S. Conditions of Contract liquidated damages on the stores which the Contractor has
failed to deliver within the period fixed for delivery.
(ii) That no increase in price on account of any statutory increase in or fresh imposition of GST,
Customs Duty, Excise Duty, Sales Tax on account of Foreign Exchange variation or on
account of any other tax/ duty leviable in respect of stores specified in the contract which
takes place after the date of the delivery period stipulated in the contract shall be admissible
on such of the said stores as are delivered after the date of the delivery stipulated in the
contract.
(iii) That notwithstanding any stipulation in the contract for increase in price on any other ground
no such increase which takes place after the date of the delivery stipulated in the contract
shall be admissible on such of the said stores as are delivered after the expiry of the delivery
period stipulated in the contract.
(iv) But nevertheless, the Purchaser shall be entitled to the benefit of any decrease in price on
account of reduction in or remission of GST, Custom Duty, Excise Duty , Sales Tax or on
account of Foreign Exchange variation or on account of any other tax/duty or on other ground
as stipulated in the Price Variation clause which takes place after the expiry of the date of
delivery period stipulated in the contract.
3401 The Contractor shall not dispatch the Stores till such time as an extension in terms of para
3400 (a) to (d) above is granted by the Purchaser and accepted by the Contractor. If the stores are
dispatched by the Contractor before an extension letter as aforesaid is issued by the Purchaser and the
same are accepted by the Consignee, the acceptance of the stores shall be deemed to be subject to the
conditions (a) to (d) mentioned in the paragraph 3400 above.
3402 In case where the entire quantity has not been tendered for inspection within the delivery
period stipulated in the contract and the Purchaser chooses to grant an extension of the delivery period
the same would be subject to conditions (a) to (d) mentioned in the paragraph 3400 above.
3500 (Additional) special conditions:
These (special) conditions wherever they differ from the Invitation to Tender and Instruction to
Tenderers over ride the latter.
In addition to Standard Conditions of Contract, the following special conditions shall apply to
(Running) Contract
3600 Purpose of Contract and Parties to the Contract
3601 The parties to the contract, which shall be deemed to be a "Running Contract" and which is
intended for the supply of the stores of the descriptions and approximately in the quantities set forth in

the contract during the period specified therein, shall be the Contractor of the one part and the
authorities named in the contract hereinafter called the Purchaser (which expression shall, where the
context so admits or implies, be deemed to include his successors and assigns) of the other part. The
quantities shown in the said Contract, are only approximate, and cannot be guaranteed.
3602 The Purchaser may authorize any officer (who shall hereinafter be called Direct Demanding
Officer) at any time during the period of the contract, to place orders direct on the Contractor.
3603 Any variation of this contract shall not be binding on the Purchase unless or until same is
endorsed on the contract or incorporated in a formal instrument in exchange of letters and signed by
the parties.
3700 Delivery
3701 The Contractor shall as may be required by the Purchaser either deliver free or FOR or CIF at
the place or places specified in the contract such quantifies of the stores detailed in the said contract as
may be ordered direct from the Contractor from time-to-time by the Purchaser or by the Direct
Demanding Officer. The Contractor shall deliver or dispatch the full quantity of the stores so ordered
with in the period specified in the said contract.
3800 Increase or Decrease of Quantities: Deleted.
3900 Maintenance and Replacement of Stocks.
3901 To meet casual demands, the Contractor shall maintain at all time in stock (until 75 per cent
of the requirements have been drawn), at the place (s) specified in the contract, the quantity /quantities
mentioned therein. All demands should be complied with immediately they are received by the
Contractor or within the period, if any, stipulated in individual orders. As soon as the Contractor is
called upon to effect supplies, he shall take action to replenish the guaranteed stocks until such time as
75 percent of the total approximate requirement has been drawn and such replenishment shall be
completed with the period specified in the contract, after the receipt by the Contractor of casual
demands. Due notice will be given to the Contractor by the Direct Demanding Officers or by the
Purchaser, if any additional quantities over and above 75 per cent of the total approximate
requirements are required and Contractor shall then arrange stocks accordingly.
3902 The period for replenishment of stocks will be allowed only if the material is not in stock. If
the material is in stock, this Provision will be in operative even though the guaranteed stock quantity
may have been supplied against the contract.
4000 Reporting Progress of Contract.

The Contractor shall, three calendar months before the termination of the contract or at such intervals
as may be specified in the contract, submit a report to the Purchaser stating the total quantity of stores
delivered or dispatched under the contract.
4100 Special conditions where they differ from Standard Conditions override the latter.
--------------------------

SECTION III: ANNEXURES
PART · II
SECTION· III: ANNEXURES
ANNEXURE – A : DECLARATION BY BIDDERS FOR EMD EXEMPTION

(Reference: Clause 11.4 of Instructions to Tenderers)
Bid Securing Declaration to be signed by bidders availing exemption from submission of EMD
I/We certify that my/our offer is eligible for exemption from submission of bid security/ Earnest money
deposit, in terms of the tender conditions. In case my/our claim to exemption from submission of bid
security/ Earnest money Deposit is not found valid as per terms of the tender, I/We understand and
accept that Railways has unquestionable right to summarily reject my bid and my offer shall not be
considered for ordering.
Further, I/We hereby understand and accept that if I/we withdraw or modify my/our bids during the
period of validity, or if I/we are awarded the contract and on being called upon to submit the
performance security/Security Deposit, fail to submit the performance security/security Deposit
before the deadline defined in the request for bid documents/Notice Inviting Tender, I/We shall be
debarred from exemption of submitting Bid security/Earnest Money Deposit and performance
security/ security deposit for as period of 6 (six) months, from the date I/we are declared disqualified
from exemption from submission of EMD/SD , for all tenders for procurement of goods issued by any
unit of Indian Railways published during this period.

ANNEXURE – B : NO CLAIMS CERTIFICATE TO BE GIVEN BY

CONTRACTOR
(Reference: Clause 12.3.1 of Instructions to Tenderers)
Contract No._________________________________________________dt._______________ for

supply of_______________________(Brief description of material) Quantity.-____________
The above contract has been completed and I / We have no claim on the Railway in respect of the
said contract. The Security amount of Rs.__________________
(Rupees_______________________________________________) vide details
______________________dt.____________ may therefore please be refunded to me / us.
Place: __________
Date: ___________ Signature and full address of the contractor

ANNEXURE - C: FORMAT OF BANK GUARANTEE (BG) FOR SECURITY

DEPOSIT (SD)
(Reference: Clause 12.1.9 of Instructions to Tenderers)
Format or BG (Bank Guarantee) for SD (Security Deposit)

Bank Guarantee (BG) No.
Date
Amount of BG
Validity of BG
Contract/Tender No.
To,
The President of India
acting through :
Principal Financial Adviser
East Central Railway,
Hajipur – 844101 (Bihar)
1.0 Against contract concluded vide advance acceptance dated ………issued (--------
(hereinafter called " the said Agreement ") by PCMM/ECR-Hajipur on behalf of the
President of India (hereinafter called “ the Government ”) in tender No………… …..
opened on ……….for supply of ………………………...(Description of goods and
services) with M/s ……….(hereinafter called “ the said Contractor ”) and as per terms
and conditions of tender/advance acceptance , security deposit (SD) is required to be
submitted by the said Contractor as security towards the performance of
contract and the said Contractor has approached us for same , we ……..
………(Name of Bank) issue this Bank Guarantee …………….dated……… for
Rs ------------------- (Rupees -----------------------------------------------------only),
2.0 We (Bank) do hereby irrevocably undertake and guarantee to pay to the
Government amounts due and payable under this Guarantee without any demur,
merely on a demand from the Government stating that the amount claimed is
due by way of loss or damages caused to or would be caused to or suffered by
the Government by reason of any breach by the said Contractor of any of the
terms or conditions contained in the said Agreement or by reason of the said
Contractor’s failure to perform the said Agreement. Any such demand made on
the Bank shall be conclusive as regards the amount due and payable by the
Bank under this Guarantee. However,, our liability under this Guarantee shall be
restricted to an amount not exceeding Rs -------------------.
3.0 We (Bank) undertake to pay to the Government any money so demanded
notwithstanding any dispute or disputes raised by the said Contractor in any suit
or proceeding pending before any Court or Tribunal relating thereto our liability
under this present being absolute and unequivocal. The payment so made by us
under this Guarantee shall be a valid discharge of our liability for payment
thereunder and the said Contractor shall have no claim against us for making
such payment.

4.0 We (Bank) further agree that the Guarantee herein contained shall remain in full
force and effect during the period that would be taken for the satisfactory
performance of the said Agreement and that it shall continue to be enforceable
till all the dues of the Government under or by virtue of the said Agreement have
been fully paid and its claims satisfied or discharged or till the official authorized
by the Government (Purchaser : PCMM/ECR-Hajipur) certifies that the terms
and conditions of the said Agreement have been fully and properly carried out by
the said Contractor and accordingly discharges this Guarantee. Unless a
demand or claim under this guarantee is made on us in writing on or before the -
--------------(date) , we shall be discharged from all liability under this Guarantee
thereafter.
5.0 We (Bank) further agree that the Government shall have the fullest liberty
without our consent and without affecting in any manner our obligations
hereunder to vary any of the terms and conditions of the said Agreement or to
extend time of performance by the said Contractor from time to time or to
postpone for any time or from time-to-time any of the powers exercisable by the
Government against the said Contractor and to forbear or enforce any of the
terms and conditions relating to the said Agreement and we shall not be relieved
from our liability under this Bank Guarantee by reason of any such variation or
extension being granted to the said Contractor or for any forbearance , act or
omission on the part of the Government or any indulgence by the Government to
the said Contractor or by any other matter or thing whatsoever which under the
law relating to sureties would, but for this provision, have effect of so relieving us
from our liability under this Bank Guarantee.
6.0 This Guarantee will not be discharged due to the change in the constitution of
the Bank or the Contractor
7.0 We (Bank) undertake not to revoke this Guarantee during its currency except
with the previous consent of the Government in writing
8.0 This Bank Guarantee shall be irrevocable and shall remain valid upto 04.00 P.M.
on…………..(date). If further extension to this guarantee is required, the same
shall be extended for such required period on receiving instructions from the said
Contractor on whose behalf this Bank Guarantee is issued.
Date Signature of Bank’s

official
Place Name
Signature Bank’s common seal
of witness
Name, Address of Bank
Address
and Phone
No. Phone No.
Email
Note: Bank guarantees (BG) is acceptable from all nationalized/scheduled banks and it
should be executed on non-judicial stamp paper of appropriate value duly attested by
Notary Public or Executive Magistrate. BG should be sent by the issuing Bank directly to
the concerned authorities of Purchaser, under registered post AD (acknowledgement)..

ANNEXURE – D: FORMAT FOR BG FOR WARRANTY (WBG)
(Reference: Clause 24.4 of Instructions to Tenderers)
Bank Guarantee (BG) No.

Date
Amount of BG
Validity of BG
Contract No.
To,
The President of India
acting through :
Principal Financial Adviser
1.0 Whereas M/s. ______________________________, hereinafter called the

“Sellers” have agreed to sell to you (hereinafter referred to as the “Government”)
_____Nos. of____________________________________ (Description of goods
and services) as per Contract No. __________________ dated _________
(hereinafter called “the said contract”).
2.0 And whereas according to the terms of said contract, it has been stipulated that
payment of 10 % of the value of the stores would be made, provided that the
Sellers furnish to the Purchaser a Bank Guarantee from a recognized Bank,
acceptable to the Purchaser for 10 per cent of the value of the said contract, valid
for a period covering in full the Warranty obligations and Warranty Period as per
the terms and conditions of the contract.
3.0 And whereas the Sellers have approached us to give the said Bank Guarantee on
their behalf in your favour for an amount representing 10 per cent of the values of
contract which you have agreed to accept.
4.0 That in consideration of the promises and at the request, of the said Sellers, we
hereby irrevocably undertake and guarantee to pay to the Government of India or
at such other place as may be determined by you forthwith on demand and
without any demur, any sum up to a maximum amount of Rs.
_________________________ (in figures and words) representing 10 per cent of
the value of the Stores dispatched under the said contract in case the Sellers
make default in paying the said sum or make any default in the performance,
observance or discharge of the guarantee contained in the said contract.
5.0 We agree that the decision of the Government whether any default has occurred
or has been committed by the Sellers in the performance, observance or
discharge of the guarantee aforesaid shall be, conclusive and binding on us.

6.0 The Government shall be at liberty, from time-to-time, to grant or allow extension
of time or give other indulgence to the said Sellers or to modify the terms and
conditions of the said contract with the said Sellers without affecting or impairing
this guarantee or our liability hereunder
7.0 We undertake to pay to the Government any money so demanded
notwithstanding any dispute or disputes raised by the Sellers in any suit or
proceeding pending before any Court or Tribunal relating thereto our liability
under this present being absolute and unequivocal. The payment so made by us
under this bond shall be a valid discharge to our liability for payment there under
and the Sellers shall have no claim against us for making such payment.
8.0 Bank guarantee comes into force when the balance ten percent of the value of the
stores shipped per Vessel ____________ vide Bill of Lading No. _____________
dated ____________ or Railway Receipt No. _____________ dated
____________ (in the case of indigenous contracts) under the said contract, has
been paid and will remain in full force and effect up to _____________ i.e. for
______ months counted from the date of placing the stores in services, and shall
continue to be enforceable for further six months i.e. up to __________ (date),
hereinafter called the said date.
9.0 This guarantee will not be discharged due to the change in the constitution of the
Bank or the Sellers.
10.0 We (Bank) undertake not to revoke this Guarantee during its currency except
with the previous consent of the Government in writing
11.0 This Bank Guarantee shall be irrevocable and shall remain valid upto 04.00
P.M. on…………..(date). If further extension to this guarantee is required, the
same shall be extended for such required period on receiving instructions from
the said contractor on whose behalf this bank guarantee is issued.
Date Signature of Bank’s official

Place Name
Signature of Bank’s common seal
witness
Name, Address and Address of Bank
Phone No:
Phone No.
Email
Note: Bank guarantees (BG) is acceptable from all nationalized/scheduled banks and it
should be executed on non-judicial stamp paper of appropriate value duly attested by
Notary Public or Executive Magistrate. BG should be sent by the issuing Bank directly
to the concerned authorities of Purchaser, under registered post AD
(acknowledgement).

ANNEXURE – E: MANDATE FORM FOR NEFT/RTGS
From: (Vendor/Bidder) To: (Purchaser)

M/s. PCMM
Sub Details for payment through NEFT/RTGS
:
Our payments may be made through the NEFT/RTGS scheme of RBI/Railways account
as per following details
1. Name of supplier as per Bank
Account
2. Address of supplier
3. Email of supplier
4. Mobile No. of supplier
5. Name of Bank
6. Name and address of Bank’s Branch
7. Telephone / Email / Fax of Branch
8. Code No. of Bank

9. Code No. of Bank’s Branch.
10. Account No.
11. Type of Account
(Saving/Current/Cash Credit)
12. IFSC code for NEFT
13. MICR No.
Note :
1. Please attach a blank cancelled cheque of your above bank account or front page of
you passbook issued by Bank for verification of the particulars.
2. Please submit hard copy (original) of this mandate to the Purchaser within 10 days of
tender closing alongwith above cancelled cheque/Front Page of Passbook

I hereby declare that the particulars given above are correct and complete. If the
transaction is delayed or not effected at all for reasons of incomplete or incorrect
information, I would not hold the user institution responsible. I have read the option
invitation letter and agree to discharge the responsibility expected of me as a
participant under the scheme.
Certified that the particulars furnished above
are correct as per our records.
Signature of the supplier with stamp
Address
Mobile
(Signature of Bank’s authorized official with
No.
stamp)

ANNEXURE – F: FORMAT FOR PERFORMANCE STATEMENT
Tender No. of ECR
Tender closing date
Description , Drawing & specification of

tendered item
The information should be relevant to supply of tendered item (and/or similar item ) only
Contract . Name of Description Quantity Quantity Landed Inspection Receipt

No. and Purchaser/ of item ordered supplied Rate certificate Note
Within
date organization original No & its date
DP
(Name & Signature of the bidder with stamp)

Date Address
Place Email
Mobile No. Fax No.

ANNEXURE – G: FORMAT FOR MANUFACTURING CAPABILITY OF

BIDDERS
The information should be relevant to the manufacture and supply of tendered item only.
1. Name & full address of the bidder/vendor
2. Telephone (Landline, Mobile/fax) of Office/Factory/Works)

3. E -mail address.
4. Address of the manufacturing factory/works
5 Details of factory /industry license
6. Details of plant & machinery.

.
SN Name of machine Make/Cpacity Purpose Working status

Installed on
7. Details of Testing instruments & quality contolr facilities
SN Name of Make/Range Purpose Working status

instrument/facility
8. Details of manpower
Qualification Enginee Diploma ITI Others

r
No.
9. Monthly production capacity for tendered item
Registration and approval documents (Railways, MSE/NSIC,

10. ISO, etc.) : attach copy of current and valid certificates
(Name & Signature of the bidder with stamp)

Date Address
Place Email
Mobile No. Fax No.

ANNEXURE – H: CRITERIA AND FORMAT FOR ASPECT OF SISTER

CONCERN OF FIRMS VENDORS OF FIRMS/VENDOR/BIDDERS
A, The firms qualifying the following criteria shall be categorized as Allied/Sister-concerns:

i) Proprietary Firms All the firms owned by the same person shall be considered as
Allied / Sister-concerns.
ii) Partnership Firm a) All the firms having the same set of partners.
b) Firms having one or more common partner(s), having profit

sharing ratio of 20% or more in the firms.
iii) Companies a) Firms having one or more common Director(s) or any of

his/her close relative has one-third or more shareholding in
the firms.
b) Firms having common share holder having one-third shares

or more in the firms.
iv) Other Conditions In addition to this, the firms/companies operating from same office
or having same manufacturing works shall be treated as
allied/sister concern.
B. Information and declaration regarding Sister-concern (to be filled-in by bidder)

1. Type of firm Proprietary/ Partnership/Company:
2. Name & address of
owner
3. For Partnership firms :
Name & Address of Partner, with their profit-sharing ratio.
(attach self-certified copy of latest supporting documents : deed of partnership and
Certificate from Registrar of firms)
SN Name of Father’s name Age Address Profit sharing
Partner Ratio /
Percentage Share
4. For Companies :
Name & Address of Director and their relation to the person holding shares
(attach self-certified copy of latest supporting documents : Certificate of company
Registration, Memorandum and Articles of association )
SN Name of Father’s name Age Address Profit sharing
Director Ratio /
Percentage Share

5. Name & Address of Shareholder having shares more than one-third of total shares.
SN Name of Father’s name Age Address Percentage Share
Shareholder
6. Address of office and manufacturing works

from where Firm/Company is operated.
7. Details about sister-concerns (Firms either approved for the tendered item or quoted in
present tender directly (or through their dealers)
SN. Name of Type of Work Address Ownership Business

Firm Firm Place details details
(Proprietary/ (Name and
Partnership/ Percentage
Limited Share)
Company)
8. Declaration I hereby certify the information furnished by me/us is correct and

true, I have read tender conditions and fully understand that If it
is found at any stage of tender/contract that there been wrong
information or concealing of facts on part of bidder/supplier, it
shall render the bid/contract liable for rejection/cancellation, in
addition to other penal action which may be taken by Purchaser
under provisions of laws governing the tender/contract.
(Name & Signature of the
bidder with stamp)
Address
Phone No./Mobile
Fax No.
Email
END OF INTEGRATED BID DOCUMENT

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Government of India Ministry of Railways East Central Railway

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shankar prasad

Office of Principal Chief Materials Manager

INTEGRATED BID DOCUMENTS

(v. 2.0 Issued on – 24 February 2020)

(Superceeds: ECR-ET-BidDoc-R1 issued on 20 Feb 2020 )

Bid documents consists of the following :

Part · I Tender Document

Part · II Integrated Bid Document

Section ·1 Instructions to Tenderers.

Part III Drawings, Technical Specification

1. Bidders are advised to go through the user manuals available on IREPS

2. Railway Board circulars are available at

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 2 of 95

PART II: INTEGRATED BID

Table of Contents ................................................................................................................................ 3

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 3 of 95

21. DISTRIBUTION OF PROCURABLE QUANTITY............................................................ 32

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 4 of 95

2700 Laws governing the Contract: ........................................................................................... 71

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 5 of 95

Section - I: KEY INFORMATION AND CONTACTS

PAN AAAGM0289C Ministry of Railways

website for e-tenders www.ireps.gov.in

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 6 of 95

2. List of some abbreviations used in this document

Abbreviation Full form

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 7 of 95

Section- II: INSTRUCTIONS TO BIDDERS FOR e-TENDERS

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 8 of 95

1.6 E-tender document consists of :

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 9 of 95

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 10 of 95

2. DRAWINGS AND SPECIFICATIONS

ii) Indian Railway Specifications, drawings and details from:

3. COMPLIANCE WITH TECHNICAL SPECIFICATION

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 11 of 95

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 12 of 95

6.2 Procurement for items having vendors approved by centralized agency:

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 13 of 95

6.2.9 Ordering on new / developmental sources :

* A bidder shall be considered as Indian supplier if :

i) The entity is incorporated in India OR

6.2.10 Capability-cum-capacity assessment of vendor may be carried out by : ECR or Vendor

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 14 of 95

7. EFFECTS AND VALIDITY OF BIDS

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 15 of 95

8. PROCUREMENT FROM MANUFACTURER’S AUTHORIZED

8.1 Only original manufacturer (OEM) or his authorized agent/dealer/distributor is permitted to

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 16 of 95

8.3 Where a manufacturer appoints an agent/dealer/distributor on the basis of a written agreement

9. PURCHASE PREFERENCE TO MSE, STARTUPs AND MAKE IN INDIA

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 17 of 95

9.2 Bidders of MSE category:

9.4 Make in India Policy:

9.4.3 Margin of Purchase Preference (MPP) will be 20 %.

9.4.4 Verification of local content

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 18 of 95

9.4.5 Requirements of Purchase Preference

ECR-IBD-V 2.0(Issued on –24 Feb2020) Page 19 of 95