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B L Sahu.
SO/G(TG&M)
OBJECTIVES OF A TENDER
SYSTEM
TENDER PRE-REQUISITES
DIFFERENT MODES OF
TENDERING.
4/9/2023 2
Directorate of Contracts and Materials Management
 Tenders must be invited in the most
transparent and public manner possible.
 The process of tendering is the most
important aspect in framing of contract.
 The publication of tender, mode of invitation of
tender, sale of tender document, acceptance of
tender document and opening of tender
documents shall be carried out as per the
procedures laid down in the General Conditions
of Contract & Construction Management Manual
duly approved by the competent authority.
 Economy
 Efficiency;
 Fairness;
 Reliability;
 Transparency;
 Accountability and Ethical Standards.
 Equal opportunity
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
4
4/9/2023
 Give the owner best value for money
.value may imply more than just
price, for example, quality, delivery,
etc.
 Lowest initial price may not equate to
lowest cost over the operating life of
the item procured. for example AC
packages installation cost
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
5
4/9/2023
 Simple and swift, producing
positive results without protracted
delays.
 Practicality, especially in terms of
compatibility with the
administrative resources and
professional capabilities of its
dealing personnel.
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
6
4/9/2023
 Impartial, consistent, and therefore
reliable.
 Offers all interested contractors, suppliers
and consultants a level playing field.
 Results in increased participation and
hence directly expands the Owners’s
options and opportunities.
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
7
4/9/2023
 Maintains rules and procedures that are
accessible and unambiguous.
 Not only fair, but should be seen to be fair.
 Achieved through effective advertising, public
bid opening, objective evaluation criteria,
award to the lowest qualified bidder .
Directorate of Contracts and Materials Management
8
4/9/2023
Accountability and Ethical Standards.
& Equal opportunity
 INFUSE HEALTHY COMPETITION AMONGST
PROSPECTIVE SUPPLIERS/CONTRACTORS TO
ACHIEVE ABOVE OBJECTIVE.
 PROVIDE FOR LEVEL PLAYING FIELD FOR INTERESTED
BIDDERS (ART. 14 OF CONSTITUTION
FUNDAMENTAL RIGHTS – RIGHT TO EQUALITY.
 ARTICLE SAYS “THE STATE SHALL NOT DENY TO ANY
PERSON EQUALITY BEFORE THE LAW OR EQUAL
PROTECTION OF THE LAWS WITHIN THE TERRITORY
.OF INDIA”)
4/9/2023 9
Directorate of Contracts and Materials Management
 ADOPT METHOD OF SELECTION OF
CONTRACTOR WHICH IS FAIR TO ALL THE
SUPPLIERS/CONTRACTORS PARTICULARLY
WHERE COMPETITION IS INVOLVED.
 ADHERENCE TO ACCOUNTABILITY AND
ETHICAL STANDARDS
4/9/2023 10
Directorate of Contracts and Materials Management
Public Tender
Two Part Tender
Limited Tender
Single Tender
Nomination/without call of
Tender
TYPE OF TENDERS
1. PUBLIC TENDER
Normally in all cases Public Tender are to be invited.
Where it becomes essential to dispense with public
tender, same shall be done in accordance with powers
delegated in DFP for works.
Single Part Tender: Normally in all cases where the
estimated cost is less than Rs.600 lakhs the tender shall
be call in single part .
Two Part Tender: Tender for works costing more than Rs.
600 lakhs should be called in two parts. In case of
works of specialized nature below 600 lakhs also, two
part tender can be called with prior approval of
competent authority.
Tender to be split in 2 parts as follows:
i. Part I-(Technical bid): All tender documents along
with the conditions stipulated by the tenderer except
price schedule and financial conditions.
ii. Part II-(Commercial bid): Containing the price
schedule of quantities and rates.
iii. The tenderer shall submit their tender in two parts in
two separate sealed envelopes.
iv. Part I shall be opened first and technical capability
and financial implications shall be evaluated. Part II
of the tenders of those who technically qualified only
will be opened.
2. LIMITED TENDER
Limited tenders from registered / pre-qualified contractors can be called
for on the following grounds:
i. The work is required to be executed within limited period of time.
Limited tender is to be issued to those parties who have registered
themselves with NPCIL/DAE/CPWD/NTPC/RAILWAYS ETC. Limited
tender shall also be called from the parties who are pre-qualified /
short listed and approved by competent authority in NPCIL.
ii. Where the work is of special nature.
iii. Where the work is of secret nature and public announcement is not
desirable.
While calling limited tenders it is to be ensured that:
a) Minimum 5 parties, who are technically and financially competent, are
identified and tenders are issued to them.
b) Where number of parties available are less than 5, the prior approval of
competent authority is required.
During evaluation of the offers received from the selected parties, the
technical competency in terms of resource, etc shall not be assessed for
acceptance/ rejection of the offer.
3. SINGLE TENDER
On approval by competent authority, single tender can be called in
any of the following cases:
a) Work of proprietary nature .
b) There is only one source of Supply/Contractor.
c) Replacements and addition to existing equipment/structure is
of a proprietary nature.
d) Work requiring equipment, plant or process for which only one
party has been developed by DAE/NPCIL and that is only
source available.
e) Shutdown work / emergency work where normal course of
tendering process will have an effect on overall plant
performance / construction schedule.
f) Work of inescapable urgency which can directly effect the
commissioning of the Power Plant and the party has already
established equipments and necessary infrastructure at the
project site.
Note : Limited tender resulting in only one effective technically
acceptable offer shall be treated as a single tender for exercising
4. AWARD OF WORK ON NEGOTIATION / NOMINATION/ WITHOUT
CALL OF TENDER
The cases where conditions for call of single tender are not
satisfied, the call of tender from one party will be regarded as
Negotiated / Nomination / Without call of tender.
Estimate for the work is to be prepared and got approved from
competent authority.
Half yearly MIS on award of work on nomination is to be submitted
to SD/PD/ED with the copy to the concerned Finance Head.
5. EXECUTION OF DEPOSIT WORKS
The officers of NPC have been empowered to undertake
deposit works only on authorization by the CMD. The deposit
work may be accepted by the Corporation to utilize the spare
capacity and should not in any way affect the Corporation's
works.
 ORIGINAL WORKS
 REPAIR WORKS
 PETTY WORKS
 DEPOSIT WORKS
17
 Comprise of all new construction, fabrication,
erection and commissioning of a system or
 Additions and alterations to existing works or
 Special repairs of newly purchased or previously
abandoned buildings/ structures required for
bringing them into use.
 Any replacement / remodeling where the cost
of the change represents a genuine increase
in the value of the property
18
 includes primarily operations undertaken for
maintenance in proper condition of buildings
/ systems / roads and works in ordinary use.
19
 The expenditure on minor additions or
alterations to buildings, roads and plant &
machinery etc., where estimated cost is not
exceeding Rs.50,000/- (as per existing DFP)
will be termed as petty work.
 The award as well as deviations / quantity
variations up to 100% shall be approved by
PD/SD/ED provided the proposal has been
reviewed by 2 Engineers of the relevant
section.
 No financial concurrence necessary.
20
 The works of construction or repairs where the
cost is financed by other public bodies.
1. The works executed for NPCIL by other public bodies
were the corporation’s funds is deposited with other
public bodies.
2. The works executed by NPCIL for other public bodies
were funds are deposited with NPCIL by other public
bodies
21
22
 Delegation of Financial Powers for award of
 Works, Service & Maintenance Contracts
 Purchase & Service Contracts
 Consultancy Contracts
 Administrative matters & Office Expenses
Order has been issued in form of Head Quarter
Instructions (HQIs) duly approved by Board.
These HQIs also consists detailed provision/
controls to be followed/exercised by various
executives while exercising the financial powers from
time to time in respect of Contracts.
23
 HQI 2001 dt. 17.12.1997 -
DFP with provisions for Works, Service & Maint.,
Contracts - Red Book
 HQI 2007 dt. 1.11.1998 -
DFP with provisions for Purchase & Service
Contracts - Blue Book
 HQI 2011 dt.1.5.2001 -
DFP with provisions for Consultancy Contracts
- Green Book
 HQI 2012 dt.1.5.2001 -
DFP with provisions for Administrative & Office
Exp., - Yellow Book
TYPES OF CONTRACT
The contracts can be mainly classified as under :
1. LUMP SUM CONTRACT - As its name indicates, is used
for work in which tenderers are required to quote a lump
sum figure for completing works in accordance with the
given designs, drawings, specification and functional
requirements, as the case may be.
Lump sum contract can be either for only executing the
work as per given design, drawing and specification or it
may include element of doing design work and
preparation of structural drawings etc. Payment
schedule for various interim milestones is to be included
along with the tender by the tenderer.
2. ITEM RATE CONTRACT - Tenderers are required to quote
rate for individual items of work on the basis of schedule
of quantities furnished by the Corporation.
2. COST PLUS CONTRACT – A contract wherein the price
payable for supplies or services under the contract is
determined on the basis of the actual cost of production of
the supplies or services rendered plus profit either at a fixed
rate or unit or at a fixed percentage on the actual cost of
production.
3. PERCENTAGE RATE CONTRACT - The bidders are asked to
quote the percentage above/below the estimated amount
given in the tender.
4. BUILT OPERATE/LEASE TRANSFER (BOT/BOLT) - Built
Operate/leaseTransfer (BOT) is a form of contract, wherein a
private entity receives a contract to finance, design,
construct, and operate a facility stated in the contract over a
period on agreed terms & conditions and transfer the facility
back to the Owner/Department. This enables the contractor
to recover its investment, operating and maintenance
expenses in the project over a period before transferring the
facility back to the Owner/Department.
COMPARISON OF SINGLE BID TENDER - V/S - TWO BID TENDER
Sr.
No
.
Description Single Bid
Tender
Two Bid
Tender
1. Estimated Cost ceiling Up to 600 lakhs Above 600 lakhs / special
cases
2. Preparation of tender
document
In one part
(Section I to VIII)
In two part
Technical Bid (Section I to VII)
&
Commercial Bid (Section-VIII)
3. Submission of tender Together Together but in separate
envelops
4. Opening of tender Together Separately for Technical bid
& commercial bid.
5. Technical evaluation After opening of
tender
After opening of Technical Bid
but before opening of
commercial bid.
6. Pre Bid Meeting Not required Required
7. Amount of Bid Security Same for Single Bid & Two Bid tender
8. Security Deposit Same for Single Bid & Two Bid tender
27

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Mode of Tendering.pptx

  • 2. OBJECTIVES OF A TENDER SYSTEM TENDER PRE-REQUISITES DIFFERENT MODES OF TENDERING. 4/9/2023 2 Directorate of Contracts and Materials Management
  • 3.  Tenders must be invited in the most transparent and public manner possible.  The process of tendering is the most important aspect in framing of contract.  The publication of tender, mode of invitation of tender, sale of tender document, acceptance of tender document and opening of tender documents shall be carried out as per the procedures laid down in the General Conditions of Contract & Construction Management Manual duly approved by the competent authority.
  • 4.  Economy  Efficiency;  Fairness;  Reliability;  Transparency;  Accountability and Ethical Standards.  Equal opportunity Directorate of Contracts and Materials Management NUCLEAR POWER CORPORATION OF INDIA LIMITED 4 4/9/2023
  • 5.  Give the owner best value for money .value may imply more than just price, for example, quality, delivery, etc.  Lowest initial price may not equate to lowest cost over the operating life of the item procured. for example AC packages installation cost Directorate of Contracts and Materials Management NUCLEAR POWER CORPORATION OF INDIA LIMITED 5 4/9/2023
  • 6.  Simple and swift, producing positive results without protracted delays.  Practicality, especially in terms of compatibility with the administrative resources and professional capabilities of its dealing personnel. Directorate of Contracts and Materials Management NUCLEAR POWER CORPORATION OF INDIA LIMITED 6 4/9/2023
  • 7.  Impartial, consistent, and therefore reliable.  Offers all interested contractors, suppliers and consultants a level playing field.  Results in increased participation and hence directly expands the Owners’s options and opportunities. Directorate of Contracts and Materials Management NUCLEAR POWER CORPORATION OF INDIA LIMITED 7 4/9/2023
  • 8.  Maintains rules and procedures that are accessible and unambiguous.  Not only fair, but should be seen to be fair.  Achieved through effective advertising, public bid opening, objective evaluation criteria, award to the lowest qualified bidder . Directorate of Contracts and Materials Management 8 4/9/2023
  • 9. Accountability and Ethical Standards. & Equal opportunity  INFUSE HEALTHY COMPETITION AMONGST PROSPECTIVE SUPPLIERS/CONTRACTORS TO ACHIEVE ABOVE OBJECTIVE.  PROVIDE FOR LEVEL PLAYING FIELD FOR INTERESTED BIDDERS (ART. 14 OF CONSTITUTION FUNDAMENTAL RIGHTS – RIGHT TO EQUALITY.  ARTICLE SAYS “THE STATE SHALL NOT DENY TO ANY PERSON EQUALITY BEFORE THE LAW OR EQUAL PROTECTION OF THE LAWS WITHIN THE TERRITORY .OF INDIA”) 4/9/2023 9 Directorate of Contracts and Materials Management
  • 10.  ADOPT METHOD OF SELECTION OF CONTRACTOR WHICH IS FAIR TO ALL THE SUPPLIERS/CONTRACTORS PARTICULARLY WHERE COMPETITION IS INVOLVED.  ADHERENCE TO ACCOUNTABILITY AND ETHICAL STANDARDS 4/9/2023 10 Directorate of Contracts and Materials Management
  • 11. Public Tender Two Part Tender Limited Tender Single Tender Nomination/without call of Tender
  • 12. TYPE OF TENDERS 1. PUBLIC TENDER Normally in all cases Public Tender are to be invited. Where it becomes essential to dispense with public tender, same shall be done in accordance with powers delegated in DFP for works. Single Part Tender: Normally in all cases where the estimated cost is less than Rs.600 lakhs the tender shall be call in single part . Two Part Tender: Tender for works costing more than Rs. 600 lakhs should be called in two parts. In case of works of specialized nature below 600 lakhs also, two part tender can be called with prior approval of competent authority.
  • 13. Tender to be split in 2 parts as follows: i. Part I-(Technical bid): All tender documents along with the conditions stipulated by the tenderer except price schedule and financial conditions. ii. Part II-(Commercial bid): Containing the price schedule of quantities and rates. iii. The tenderer shall submit their tender in two parts in two separate sealed envelopes. iv. Part I shall be opened first and technical capability and financial implications shall be evaluated. Part II of the tenders of those who technically qualified only will be opened.
  • 14. 2. LIMITED TENDER Limited tenders from registered / pre-qualified contractors can be called for on the following grounds: i. The work is required to be executed within limited period of time. Limited tender is to be issued to those parties who have registered themselves with NPCIL/DAE/CPWD/NTPC/RAILWAYS ETC. Limited tender shall also be called from the parties who are pre-qualified / short listed and approved by competent authority in NPCIL. ii. Where the work is of special nature. iii. Where the work is of secret nature and public announcement is not desirable. While calling limited tenders it is to be ensured that: a) Minimum 5 parties, who are technically and financially competent, are identified and tenders are issued to them. b) Where number of parties available are less than 5, the prior approval of competent authority is required. During evaluation of the offers received from the selected parties, the technical competency in terms of resource, etc shall not be assessed for acceptance/ rejection of the offer.
  • 15. 3. SINGLE TENDER On approval by competent authority, single tender can be called in any of the following cases: a) Work of proprietary nature . b) There is only one source of Supply/Contractor. c) Replacements and addition to existing equipment/structure is of a proprietary nature. d) Work requiring equipment, plant or process for which only one party has been developed by DAE/NPCIL and that is only source available. e) Shutdown work / emergency work where normal course of tendering process will have an effect on overall plant performance / construction schedule. f) Work of inescapable urgency which can directly effect the commissioning of the Power Plant and the party has already established equipments and necessary infrastructure at the project site. Note : Limited tender resulting in only one effective technically acceptable offer shall be treated as a single tender for exercising
  • 16. 4. AWARD OF WORK ON NEGOTIATION / NOMINATION/ WITHOUT CALL OF TENDER The cases where conditions for call of single tender are not satisfied, the call of tender from one party will be regarded as Negotiated / Nomination / Without call of tender. Estimate for the work is to be prepared and got approved from competent authority. Half yearly MIS on award of work on nomination is to be submitted to SD/PD/ED with the copy to the concerned Finance Head. 5. EXECUTION OF DEPOSIT WORKS The officers of NPC have been empowered to undertake deposit works only on authorization by the CMD. The deposit work may be accepted by the Corporation to utilize the spare capacity and should not in any way affect the Corporation's works.
  • 17.  ORIGINAL WORKS  REPAIR WORKS  PETTY WORKS  DEPOSIT WORKS 17
  • 18.  Comprise of all new construction, fabrication, erection and commissioning of a system or  Additions and alterations to existing works or  Special repairs of newly purchased or previously abandoned buildings/ structures required for bringing them into use.  Any replacement / remodeling where the cost of the change represents a genuine increase in the value of the property 18
  • 19.  includes primarily operations undertaken for maintenance in proper condition of buildings / systems / roads and works in ordinary use. 19
  • 20.  The expenditure on minor additions or alterations to buildings, roads and plant & machinery etc., where estimated cost is not exceeding Rs.50,000/- (as per existing DFP) will be termed as petty work.  The award as well as deviations / quantity variations up to 100% shall be approved by PD/SD/ED provided the proposal has been reviewed by 2 Engineers of the relevant section.  No financial concurrence necessary. 20
  • 21.  The works of construction or repairs where the cost is financed by other public bodies. 1. The works executed for NPCIL by other public bodies were the corporation’s funds is deposited with other public bodies. 2. The works executed by NPCIL for other public bodies were funds are deposited with NPCIL by other public bodies 21
  • 22. 22  Delegation of Financial Powers for award of  Works, Service & Maintenance Contracts  Purchase & Service Contracts  Consultancy Contracts  Administrative matters & Office Expenses Order has been issued in form of Head Quarter Instructions (HQIs) duly approved by Board. These HQIs also consists detailed provision/ controls to be followed/exercised by various executives while exercising the financial powers from time to time in respect of Contracts.
  • 23. 23  HQI 2001 dt. 17.12.1997 - DFP with provisions for Works, Service & Maint., Contracts - Red Book  HQI 2007 dt. 1.11.1998 - DFP with provisions for Purchase & Service Contracts - Blue Book  HQI 2011 dt.1.5.2001 - DFP with provisions for Consultancy Contracts - Green Book  HQI 2012 dt.1.5.2001 - DFP with provisions for Administrative & Office Exp., - Yellow Book
  • 24. TYPES OF CONTRACT The contracts can be mainly classified as under : 1. LUMP SUM CONTRACT - As its name indicates, is used for work in which tenderers are required to quote a lump sum figure for completing works in accordance with the given designs, drawings, specification and functional requirements, as the case may be. Lump sum contract can be either for only executing the work as per given design, drawing and specification or it may include element of doing design work and preparation of structural drawings etc. Payment schedule for various interim milestones is to be included along with the tender by the tenderer. 2. ITEM RATE CONTRACT - Tenderers are required to quote rate for individual items of work on the basis of schedule of quantities furnished by the Corporation.
  • 25. 2. COST PLUS CONTRACT – A contract wherein the price payable for supplies or services under the contract is determined on the basis of the actual cost of production of the supplies or services rendered plus profit either at a fixed rate or unit or at a fixed percentage on the actual cost of production. 3. PERCENTAGE RATE CONTRACT - The bidders are asked to quote the percentage above/below the estimated amount given in the tender. 4. BUILT OPERATE/LEASE TRANSFER (BOT/BOLT) - Built Operate/leaseTransfer (BOT) is a form of contract, wherein a private entity receives a contract to finance, design, construct, and operate a facility stated in the contract over a period on agreed terms & conditions and transfer the facility back to the Owner/Department. This enables the contractor to recover its investment, operating and maintenance expenses in the project over a period before transferring the facility back to the Owner/Department.
  • 26. COMPARISON OF SINGLE BID TENDER - V/S - TWO BID TENDER Sr. No . Description Single Bid Tender Two Bid Tender 1. Estimated Cost ceiling Up to 600 lakhs Above 600 lakhs / special cases 2. Preparation of tender document In one part (Section I to VIII) In two part Technical Bid (Section I to VII) & Commercial Bid (Section-VIII) 3. Submission of tender Together Together but in separate envelops 4. Opening of tender Together Separately for Technical bid & commercial bid. 5. Technical evaluation After opening of tender After opening of Technical Bid but before opening of commercial bid. 6. Pre Bid Meeting Not required Required 7. Amount of Bid Security Same for Single Bid & Two Bid tender 8. Security Deposit Same for Single Bid & Two Bid tender
  • 27. 27