BHARAT BROADBAND NETWORK LIMITED - BBNL Procurement manual...Bharat Broadband Network Limited Corporate Office, ... especially Bharat Sanchar Nigam Limited and ... with various stakeholders

BHARAT BROADBAND NETWORK LIMITED

(A Government of India Enterprise)

REVISED MANUAL OF PROCUREMENT

OF

TELECOM EQUIPMENT

AND

STORES

September 2015

Bharat Broadband Network Limited Corporate Office, 3rd Floor, CDOT Campus,

Mandi Gaon Road, Chhatarpur New Delhi - 110030

Visit us at : www.bbnl.nic.in

BBNL Procurement Manual 2013 Page 1

CHAPTER - 1 ............................................................................................................................... 4

1. PREAMBLE ........................................................................................................................ 4 CHAPTER - 2 ............................................................................................................................... 6

2. GUIDELINES FOR USER SECTIONS ...................................................................................... 6 CHAPTER - 3 ............................................................................................................................. 10

3. PREPARING BID DOCUMENTS ............................................................................................10 CHAPTER - 4 ............................................................................................................................. 17

4. STANDARD TENDER ENQUIRY DOCUMENT ........................................................................17 SECTION - I. ......................................................................................................................... 18

NOTICE INVITING TENDER .......................................................................................................18 SECTION - II......................................................................................................................... 20

GENERAL INSTRUCTIONS TO BIDDERS ......................................................................................20 SECTION - III. ...................................................................................................................... 34

GENERAL (COMMERCIAL) CONDITIONS OF CONTRACT .............................................................34

Model Amendment Letter Intimating Conditions for Extension of Delivery Period ......................................44

Model Amendment Letter for Extension of Delivery Period ....................................................................45 SECTION - IV. ....................................................................................................................... 46

SPECIAL INSTRUCTIONS TO BIDDERS AND SPECIAL CONDITIONS OF CONTRACT .......................46

PART A - SPECIAL INSTRUCTIONS TO BIDDERS AND ELIGIBILITY CONDITIONS ...........................46

PART B – SPECIAL (COMMERCIAL) CONDITIONS OF CONTRACT (SCC) ........................................47

PART C – SPECIAL (TECHNICAL) CONDITIONS OF CONTRACT AND TECHNICAL SPECIFICATIONS 50 SECTION - V. ......................................................................................................................... 51

SCHEDULE OF REQUIREMENTS (SOR) .......................................................................................51 SECTION - VI. ....................................................................................................................... 52

BID FORM ................................................................................................................................52 SECTION - VII. ..................................................................................................................... 53

Part I -Price Schedule for Indigenous Equipment (A) ...........................................................................53

Part II - Price Schedule for Imported Equipment (B) ............................................................................54

Part III - Price Schedule for Services (C) ...........................................................................................55 SECTION - VIII. ................................................................................................................... 56

BID SECURITY FORM ................................................................................................................56 SECTION - IX. ....................................................................................................................... 57

PERFORMANCE SECURITY GUARANTEE BOND ..........................................................................57 SECTION - X. ......................................................................................................................... 59

LETTER OF AUTHORISATION FOR ATTENDING BID OPENING .....................................................59 CHAPTER - 5 ............................................................................................................................. 60

5. BID SECURITY BOND OR EARNEST MONEY DEPOSIT (EMD) .................................................60 CHAPTER - 6 ............................................................................................................................. 62

6. OPENING OF BIDS .............................................................................................................62 CHAPTER - 7 ............................................................................................................................. 66


7. FORMATION OF COMMITTEE FOR EVALUTION OF TENDER/ EOI (CET)...................................... 66

CHAPTER - 8............................................................................................................................. 68

8. GUIDELINES TO COMMITTEE FOR EVALUATION OF TENDER/ EOI (CET) ................................... 68

CHAPTER - 9............................................................................................................................. 72

9. ACCEPTANCE OF EVALUATION REPORTS AND FRAMING OF PURCHASE PROPOSALS ............ 72

CHAPTER - 10 ........................................................................................................................... 74

10. PERFORMANCE BANK GUARANTEE ................................................................................................... 74

CHAPTER - 11 ........................................................................................................................... 77

11. ADVANCE PURCHASE ORDER ...................................................................................................... ........ 77

ADVANCE PURCHASE ORDER FORMAT ........................................................................................ .............. 78

CHAPTER - 12 ........................................................................................................................... 81

12. PURCHASE ORDER ................................................................................................................................. 81

PURCHASE ORDER FORMAT .................................................................................................... ..................... 82

CHAPTER - 13 ........................................................................................................................... 86

13. GUIDIELINES FOR PLACEMENT OF EDUCATIONAL ORDERS ........................................................ 86

CHAPTER - 14 ........................................................................................................................... 87

14. PRICING AND PRESERVATION OF THE TENDER DOCUMENTS ...................................................... 87

CHAPTER - 15 ........................................................................................................................... 88

15. CONCESSIONS TO MSME ENTERPRISES ............................................................................................. 88

CHAPTER - 16 ........................................................................................................................... 89

16. METHODOLOGY FOR ROUTES OTHER THAN OPEN TENDER......................................................... 89

16.1. Expression of Interest Route ................................................................................................ ......... 89

16.2. Limited tender Route ........................................................................................................ ............. 89

16.3. Negotiations Route ........................................................................................ ................................. 89

16.4. Rate Contract Route ......................................................................................................... ............. 89

16.5. Nomination Route .......................................................................................................................... 90

CHAPTER - 17 ........................................................................................................................... 91

17. LIST OF ABBREVIATIONS ....................................................................................................... .............. 91


CHAPTER - 1

1. PREAMBLE

1.1. Introduction

1.1.1. The Government has approved a scheme for creation of National Optical Fibre Network (NOFN)

to extend the existing optical fibre initially upto Panchayats by using Universal Service

Obligation Fund (USOF) and creation of an institutional mechanism for management of NOFN

for ensuring non-discriminatory access to service providers. Initially a High Level Committee

(HLC) was set up by DOT to steer and coordinate all activities related to the creation and

implementation of the NOFN. The HLC was suitably empowered by DOT. As per the

Government approval, a Special Purpose Vehicle (SPV) would be established as a company

incorporated under the Indian Companies Act 1956, which will then take over all the functions

and responsibilities of the executing agency (EA). Accordingly, BBNL was incorporated on 25-

02-2012 as the executing agency for carrying out this work and the date of commencement of

business is 09-04-2012. Till the formation of BBNL, the HLC was providing the necessary

guidance on all issues relevant to the expeditious establishment and operationalization of the

SPV including the appropriate project execution model.

1.1.2. Under the NOFN Project, approximately 2.5 lakh Gram Panchayats have to be connected by

Optical Fibre Cable. Very strict timelines have been set for executing the Project by the

Government.

1.1.3. Procurement is an important activity in BBNL as most of its budget is used for procurement of

materials and services. BBNL being a Corporate Entity, has to establish a procurement

procedure in line with the Government regulations and guidelines. The aim of the Procurement

Policy is to procure the material and/or services of the specified quality, at the most competitive

rates, in a fair, just and transparent manner. Further, BBNL has to adopt an appropriate

Procurement Policy aligning the aims and objectives of the NOFN appropriately. In view of the

strict timelines set for the NOFN Project, time is the essence for all activities including

procurement for successful execution of the project.

1.1.4. This manual contains the procedures, guidelines to be followed by BBNL for procurement of

Telecom equipment and/ or services. While the Manual aims at providing broad procedures, the

decision regarding the competent authority should be taken on the basis of Schedule of

Delegation of Administrative and Financial Powers issued by Corporate Office. For purchase

without quotations and purchase of goods by a purchase committee, the delegation of powers

should be referred.

1.1.5. Procurement through e-procurement and e-tendering should be encouraged. E-Tendering is the

carrying out of the tendering process through the Internet, using e-tendering software

applications. This promotes competition for the tender, and provides a process that is efficient

for both the buyer and suppliers and a selection process that is transparent to bidders. The

modalities and procedures for e-procurement are being framed and shall be incorporated in the

Manual. Tenders with estimated cost more than Rupees 5 lakh would be through e-tendering

process and further down to Rupees 2 lakh w.e.f. 01-04-2016.

1.1.6. The procurement of materials and services in BBNL shall usually be done by inviting open

tenders. However, it is also recognized that role of BBNL is complex and accordingly, appropriate procurement strategies need to be devised as per the need of the Project.

1.1.7. It is essential not only to see the cost of materials being procured but also the time required for its procurement as well as successful implementation. The cost of opportunity as well as adherence


to the timelines/ targets set for BBNL also need to be taken into consideration. Hence, under such

circumstances, BBNL Board may decide the methodology to be adopted for such procurement,

taking into consideration cost, time as well as business opportunities as the situation warrants.

1.1.8. In addition to open tendering, various other methodologies may have to be adopted as per

requirement. Some of such methodologies are briefly mentioned in Chapter 16 of this Manual.

This list is not exhaustive and exact methodology for each such procurement may be devised

and decided by the BBNL Board on case-to-case basis.

1.1.9. While framing this Procurement Manual, references have been made to the Procurement Manuals of other organizations, especially Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited as well as the Manual of policies and procedures for purchase of

Goods issued by Department of Expenditure, Ministry of Finance, which was proposed as the

model Procurement Manual for public procurement providing generic guidelines

(http://finmin.nic.in/the_ministry/ dept_expenditure/GFRS/MPProc4ProGod.pdf).

1.1.10. Guidelines of Central Vigilance Commission (CVC), Department of Expenditure (Ministry of

Finance), Department of Public Enterprises shall be followed.

***


CHAPTER - 2

2. GUIDELINES FOR USER SECTIONS

2.1. Role of the User Section 2.1.1. The User Section (i.e. the Unit that has raised the requisition e.g. Technical/ Planning/

Operations/ Marketing/ Administration/ any other unit) is primarily responsible for deciding and

getting approval of the competent authority for the quantities to be procured, the estimated cost

of procurement, the eligibility conditions, specifications, technical requirements, Schedule of

Requirements and the conditions specific to the procurement. Further, after bid opening, the

evaluation is carried out by a Committee whose Chairman/ Convenor is usually from the

concerned user group. As such, the User Section has a very important role right from inception

of the procurement requirement till the finalization of the tender.

2.1.2. Delay in finalization of tenders often leads to delay in project rollout and slippage of targets. Often,

the delay could be avoided if the tender conditions and requirements are framed meticulously.

2.1.3. In this chapter, broad guidelines are provided which should be kept in view before floating a tender enquiry. The correct decision will continue to depend on experience and good judgement of the concerned sections.

2.2. Need/ Quantity

2.2.1. The starting point of the procurement process for any item is estimation or forecast of its

requirements to be reflected in the tender documents. The price of the item has a bearing on

the quantity being tendered for example, higher the quantity, more the chances of price being

lower for the same item.

2.2.2. Excessive provisioning without taking into consideration the important aspects like available

stock, outstanding dues/ supplies, past consumption pattern and the average life of the

equipment/ item etc. results in infructuous expenditure both in term of procurement cost and the

inventory carrying cost. The projection and provisioning must be judicious and justified

depending on various factors including usage pattern. One time purchase for project or capital

equipment/ spares should be properly justified taking into account the obsolescence factor, etc.

2.3. Forecasting Methods

2.3.1. For all items being procured, the forecast of the equipment is obtained from the concerned user

branches who plan for the induction of such equipment into the network. The requirement of the

equipment, usually for one year, against each project should be worked out after discussion

with various stakeholders including field units and finalized by the User Branch.

2.3.2. The lead time for procurement has an important bearing in these requirements e.g. items having longer lead time need to be procured for requirement over a longer time frame whereas items

having very short lead time can be procured for commensurately shorter period of requirements.

2.3.3. While forecasting the requirements, it is necessary to keep in mind the necessity of ensuring

that the projects covered in the requirements are planned projects which have been approved

by the competent authorities, for which funds are provided and are backed-up by estimates

sanctioned by the competent authorities.

2.3.4. In the cases where the supplier of the equipment or the production of equipment depends on

imported components, it is necessary to have an accurate forecast so that the cost of equipment is shielded from rapid changes in the exchange rate over a longer period of time.


2.3.5. Planning/ forecast for the next financial year should normally start three to six months in

advance to ensure availability of equipment/ services well in time.

2.4. Deciding the Eligibility Criteria

2.4.1. Credentials, manufacturing capability, quality control systems, past performance for the goods

in question, facility for after-sales service, financial background etc. of the supplier(s) may be

considered while framing the eligibility conditions.

2.4.2. In case there is a change in the eligibility conditions with reference to the last successful

procurement of same item, or if the good is being procured for the first time, then before issue

of NIT it should be checked that sufficient bidders would meet the eligibility criteria. A vendor

conference before issue of NIT with established suppliers, Original Equipment Manufacturers

(OEMs) may be considered, if required.

2.5. Guidelines for Framing the Specifications and Technical Requirements

2.5.1. The specification of the required good should be framed in such a manner that it attracts

sufficient number of bidders. The specification, while maintaining the essential requirement of

the user department, should not be too restrictive or too lenient. Efforts should also be made to

use standard specifications which are widely known to the industry.

2.5.2. The specifications in terms of quality, type etc., as also quantity of goods to be procured, should

be clearly spelt out keeping in view the specific needs of the user sections. The specifications

so worked out should meet the basic needs of the organisation without including superfluous

and non-essential features, which may result in unwarranted expenditure. Care should also be

taken to avoid purchasing quantities in excess of requirement to avoid unnecessary inventory

carrying costs.

2.5.3. Specification should call for new unused goods.

2.5.4. Specifications shall also aim at the latest proven technology and avoid procurement of obsolete goods.

2.5.5. Specification should have emphasis on factors like efficiency, optimum fuel/ power

consumption, use of environmental friendly materials, reduced noise and emission levels, low

maintenance cost etc.

2.5.6. The specification should also take care of the country’s mandatory and statutory regulations, if any, applicable for the goods to be purchased.

2.5.7. Except in case of proprietary purchase from a selected single source, the specification must not

contain any brand name, make or catalogue no. of a particular manufacturer and if the same is

unavoidable due to some compelling reasons, it should be followed by the words “or equivalent”.

2.5.8. The specification and the technical details should be expressed with proper clarity without any

ambiguity or double meaning. Wherever necessary, the written specification should be

supplemented with drawings for additional clarity etc.

2.5.9. Deciding tender only on the basis of tender sample is too subjective. Therefore, unless

specifically decided due to some reasons duly recorded with the approval of concerned

functional Director, tender sample clause shall not be incorporated in the specification. If

necessary, suitable stipulations for submission of advance sample (before starting bulk

production) by the successful bidder may be incorporated in the specification.

2.5.10. In some cases, the technical parameters may be different from the TEC GRs. The general


principle shall be to adopt the TEC GRs and the BBNL specifications could cover only such

additional details and/ or deletions as are specially required to be complied for a particular end use.

In cases where TEC GRs do not exist or, alternatively, decision has been taken to try the foreign

market also, International Standards (like ISO, ITU, IEEE, EIA etc.) may also be adopted. Where no

widely known standards exist, the specification shall be drawn in a generalized and broad-based

manner to obtain competitive bids from different sources. As far as possible the specifications

shall be drafted keeping the BBNL requirements in mind. The concerned user section shall

decide, with the approval of concerned functional Director, the extent of references to full or

part of the TEC GR suiting to the actual BBNL network requirements.

2.5.11. For large infrastructure projects or turnkey projects, the Detailed Technical Requirements (DTR)

should be prepared covering the solution architecture, services to be supported, existing network

architecture, functional and technical requirements of the product, any other requirement.

2.6. Estimated Rates 2.6.1. Estimated rates are often worked out in an adhoc, unprofessional and perfunctory manner, at

times by extrapolating the price of the lowest capacity equipment or by applying a uniform

yearly compounded escalation over the prices of similar equipment purchased few years ago.

As estimated rate is a vital element in establishing the reasonableness of prices, it is important

that the same is worked out in a realistic and objective manner on the basis of prevailing market

rates, last purchase prices, economic indices for the raw material/ labour, other input costs and

assessment bases on intrinsic value of the item etc. Specifications have a direct bearing on the

rates.

2.6.2. The estimated rates should be worked out while keeping in view the above on case-to-case basis and should be vetted by finance wing before issue of NIT.

2.7. Schedule of Requirement (SOR) 2.7.1. The Schedule of Requirement (SOR) should be meticulous and it should be clearly indicated

that what details are expected in the detailed Bill of Material (BOM) for each SOR item. This issue should be specially considered while dealing with projects having number of SOR items.

2.8. Special Instructions to Bidders and Special Conditions of Contract

2.8.1. The user section in consultation with the MM cell may introduce additional instructions to

bidders and special commercial conditions of contract, as necessary. These special conditions

and/or instructions shall constitute the Section-IV of the tender enquiry document as explained

in Chapter 3.

2.9. Authorities competent to purchase goods and their Purchase Powers

2.9.1. An authority which is competent to incur expenditure may sanction the purchase of goods

required for use in public service in accordance with Schedule of Delegation of Administrative

and Financial Powers issued by BBNL Corporate Office, following the general procedure

contained in this manual.

2.9.2. The Board of Directors of BBNL has full powers for procurement of goods subject to

Government Guidelines and approval of estimates by competent authority and clause 25 (c) of

Section II of the General Commercial Conditions may also be referred.

2.9.3. A demand should not be split into small quantities for the sole purpose of avoiding the necessity

of taking approval of the higher authority required for sanctioning the purchase of the original

demand

2.9.4. Amendment in any General commercial condition of the contract may be with the explicit approval


of Executive Committee of BBNL Board.

2.9.5. The eligibility conditions, special conditions and the technical specifications for each

procurement case would be approved by the concerned functional Director of BBNL Board.

2.10. Check-List for Requisition for Procurement of Material

2.10.1. Information to be given by user section to MM Cell along with requisitions for tender to be issued

S.No. Item Status (Y/N)

1 Details of items along with quantity 2 Administrative approval of competent authority 3 Concurrence from finance for the quantity to be tendered 4 Approximate financial implications of procurement. 5 Technical specification No(s) (sufficient copies of each Tech.

Spec. to be given) 6 Evaluation of Tender on package basis/ individual item

basis (package to be defined in case of package evaluation) 7 Two-Stage/ Single-stage bidding 8 Certificate regarding availability of Funds 9 Whether indigenous or import through global Tender

10 Sections IV-A, IV-B and IV-C approved by the competent authority 11 Bid Security/ Earnest Money Deposit value 13 Eligibility Criteria approved by Competent authority 14 Delivery Schedule (in case any specific schedule is desired) 15 Training requirement: No. of trainees, type of Training, duration

of each type of training, place of training, 16 Requirement of spares, tools & testers etc 17 Any special conditions to be added in the Bid Document

This issues with the Approval of CGM/ Sr.GM/ GM of User Section.

(signature) Sr.

Manager/ Manager User Section

***


CHAPTER - 3

3. PREPARING BID DOCUMENTS

3.1. Preparation of Tender Enquiry Document 3.1.1. A Standard Tender Enquiry Document template, prepared in line with the purchase policies of

BBNL, is available in Chapter-4. This Chapter provides guidelines, with examples, about how to

prepare a tender enquiry document based on the standard tender enquiry document template.

The broad procedures for tendering process and contract management are available in Section-

II and Section-III of the Standard Tender Enquiry Document template of Chapter-4. The officials

handling purchases must, at the outset, get themselves acquainted with the rules, regulations,

procedures etc. contained in these chapters. This standard document should be utilized for

preparing tender enquiry document while incorporating specific requirements on case-to-case

basis.

3.1.2. While formulating the tender enquiry document, care should be taken to avoid contradictions

among the stipulations incorporated in the document. Duplications should also be avoided, except where duplication is unavoidable and necessary.

3.1.3. The tender enquiry document should not contain any footnote or vague stipulation, which may create confusion in the mind of the bidder.

3.2. Standard Tender Enquiry Document 3.2.1. The text of the Standard Tender Enquiry Document has been grouped under different broad

sections in order to streamline the purchase system and also to make the system transparent, comprehensive, efficient and user-friendly. The broad sections of the document are :

Section – I Notice Inviting Tender (NIT)

Section – II General Instructions to Bidders (GIB)

Section – III General (Commercial) Conditions of Contract (GCC)

Section – IV A Special Instructions to Bidders and Eligibility Conditions (SIBEC)

Section – IV B Special (Commercial) Conditions of Contract (SCC)

Section – IV C Special (Technical) Conditions of Contract and Technical Specifications

Section – V Schedule of Requirements (SOR)

Section – VI Bid Form

Section – VII A Price Schedule for Indigenous Equipments

Section – VII B Price Schedule for Imported Equipments

Section – VII C Price Schedule for Services

Section – VIII Bid Security Form

Section – IX Performance Security Guarantee Bond

Section – X Letter of Authorisation for attending Bid Opening

3.2.2. A reading of the sections of the tender enquiry document, in the above order will make it amply

clear about the purpose and instructions behind the same. However, some broad guidelines for

using this document (viz. Standard Tender Enquiry Document) are provided in the subsequent

paragraphs. BBNL Procurement Manual 2013 Page 10

3.3. Section-I - Notice Inviting Tender (NIT)

3.3.1. The Notice Inviting Tender (NIT) should contain:

a) Brief description of the goods and quantity

b) Period and terms of delivery

c) Cost of the tender/ bidding document

d) Place(s) and timing of sale of tender documents

e) Place and deadline for receipt of tenders

f) Place, time & date for opening of tenders

g) Amount of Bid Security / Earnest Money Deposit

h) Eligibility conditions

i) Any other important information 3.3.2. A sample format of NIT is placed at Section-I of the Standard Tender Enquiry Document.

3.3.3. The Notice Inviting Tender (NIT) shall be published in the above format on the Website of BBNL

i.e. www.bbnl.nic.in and provide a link with NIC website.

3.3.4. BBNL shall publish a brief advertisement of equipment/ items to be procured and their quantity for information of perspective bidders in National newspapers in the following format:

"BBNL intends to procure <quantity and name of the item>. For further details kindly visit our website at <address of the website>"

3.3.5. The procedure for publication of NIT in concise format in two National Dailies, one English and

one Hindi, with wide publication and Indian Trade Journal, Kolkatta along with its display in

detail on BBNL website having a link with NIC will be mandatory for a tender for and above

threshold value of Rs. 50 lakhs. In case of local tender, publication of the concise NIT may be

done in one local newspaper also. For tenders below Rs. 50 lakhs, display of NIT on BBNL

website having a link with NIC with form downloadable facility and sending it to minimum six

eligible bidders will be mandatory.

3.3.6. After issue of NIT, eligibility conditions should not be changed.

3.3.7. Usually five weeks time should be given between issue of Detailed NIT and opening of bids. However, this time should not be less than three weeks.

3.4. Section-II - General Instructions to Bidders (GIB) 3.4.1. This section provides all the necessary information as well as guidance to the prospective bidders for

preparation and submission of their bids. In addition, this section informs the bidders about the

tender opening procedure and also how the bids will be scrutinized, evaluated and ranked to decide

the lowest evaluated responsive bid for placement of the contract. This section is to be included

unchanged in every tender enquiry document. However, for every purchase case, there will be

distinct purchase specific information and data, which are to be made known to the prospective

bidders. Such needs are to be taken care of in section IV-A–‘Special Instructions to Bidders and

Eligibility Conditions’ as elaborated in the subsequent paragraphs.

3.5. Section-III - General (Commercial) Conditions of Contract (GCC) 3.5.1. This section provides the general rules, regulations and conditions which will guide the resultant

contract. This section is to be incorporated unchanged in the tender enquiry document.


However, here also, there may be some purchase specific contractual conditions, which are to

be suitably incorporated in the tender enquiry documents. Such special conditions are to be

included in Section IV-B - ‘Special (Commercial) Conditions of Contract’ and Section IV-C -

‘Special (Technical) Conditions of Contract and Technical Specifications’ as elaborated in

following paragraphs.

3.6. Section-IV-A - Special Instructions to Bidders and Eligibility Conditions (SIBEC) 3.6.1. The issues and the areas for which specific data/details are to be provided for a purchase case

can be located easily by going through the clauses of the General Instructions to Bidders (GIB)

under Section-II. Further, for certain aspects of a particular purchase case, necessity may arise

to incorporate additional special instructions. These include clauses for eligibility conditions,

value of bid security, single-stage or two-stage bidding, additional documents to be submitted,

evaluation criteria, etc. However, while doing so, care should be taken not to violate any

instruction/directive contained in the procurement policies of BBNL.

3.6.2. The User Section (i.e. the Unit that has raised the requisition e.g. Technical/ Planning/

Operations/ Marketing/ Administration/ any other unit) shall formulate the Section IV-A (SIBEC)

accordingly. Also, the approval of the competent authority must be taken for the text of the

Special Instructions to Bidders and Eligibility Conditions.

3.6.3. The guidelines for preparing section-IV-A (SIBEC) along with corresponding cross-reference with

Section-II (GIB) provision is available in this section. It is also indicated therein that the provisions in

the Special Instructions to Bidders and Eligibility Conditions (SIBEC) will supercede the

corresponding provisions in the General Instructions to Bidders (GIB) in case of conflict.

3.6.4. Section-IV-A (SIBEC) shall essentially have suitable clauses on the following:

a) Eligible Bidders(refer GIB clause 2):

The eligibility conditions shall be mentioned in the Section-IV-A clause 1. Broad guidelines for preparing eligibility conditions are mentioned in Chapter 2.

b) Bid Security(refer GIB clause 12):

The value of Bid Security (EMD/ EMBG) should be specified in Section-IV-A. In case

there are more than one packages in the tender, each having a separate Bid Security, then the Bid Security for each package should be clearly mentioned.

c) Number of successful bidders/ quantity distribution (refer GIB clause 24):

The number of bidders on which order is intended to be placed should be mentioned

in Section-IV-A. 3.6.5. In addition to above, Section-IV-A may also have clauses on the following items/ topics which

may complement/ supercede the corresponding clauses of Section-II (GIB). The list is not exhaustive and actual clauses have to be framed on case-to-case basis.

a) Clarification of Bid Documents (refer GIB clause 5):

Depending on the time allowed for submission of tender, nature of the goods, urgency

of requirement etc., the cut-off time for receiving and processing requests from the

prospective bidders may be shorter or longer than two-weeks before the bid opening

date. The principle behind providing such cut-off date is to disallow the bidders in

raising irrelevant queries upto the last moment before tender opening thereby

delaying the opening of tenders.

b) Documents Comprising the Bid (refer GIB clause 7):

If the goods required are highly sophisticated and costly, the purchaser may need


some more documents from the bidders along with their tenders. In such a case, requirement of those special documents is also to be incorporated in Section-IV-A.

c) Bid Prices (refer GIB clause 9):

This is an important area and due care should be taken for formulating this clause

depending on the nature of the goods, requirement of incidental service, terms of delivery etc.

d) The best terms of delivery, so far as the purchaser is concerned is Carriage and

Insurance Paid to (CIP) destination, wherein the goods are received by the purchaser at the desired place as incorporated in the tender enquiry document.

e) Documents Establishing Bidder’s Eligibility and Qualifications (refer GIB Clause 10):

In order to establish the eligibility and fulfillment of the qualification criteria, some documents in addition to those mentioned in GIB clause 10 might be required. Such

documents should be specified in Section-IV-A (SIBEC). These may include

experience certificates, authorization from the technology partner, MoU, etc.

f) Sealing and Signing of Bid (refer GIB clause 14) and Opening of Bids by Purchaser (refer GIB clause 19):

In case of two bid system, at the first stage, only the technical bids will be opened and

evaluated by the techno-commercial evaluation committee/ authority. Financial bids of

only techno-commercially acceptable offers shall be opened at the second stage.

g) Additional factors to be considered for evaluation of tender (refer GIB sub-clause 21.3):

Generally, for purchase of standard goods for normal use, no such additional factor

may be needed. However, for purchase of highly sophisticated and costly equipment,

where the operating cost, maintenance cost, efficiency and productivity of the

equipment have significant impact on the overall cost structure and economy for

operating the equipment, suitable parameters may be incorporated in the tender

document for evaluation of the tenders on equitable basis by considering the

monetary impacts for such parameters. In some cases such as Consultancy Projects,

evaluation might have to be done considering both technical and financial

parameters. Such details should be formulated by qualified and competent personnel

and incorporated in the document with the approval of the concerned functional

Director of the user section.

3.7. Section-IV-B - Special (Commercial) Conditions of Contract (SCC): 3.7.1. The areas of the General (Commercial) Conditions of Contract (GCC), in which specific data/

details are to be provided and/ or which need modification to take care of special situations for a

particular purchase case can easily be located by going through the GCC clauses and have to

be put in SCC. However, while doing so, it should be ensured that such modifications remain

within the framework of the procurement policies of BBNL.

3.7.2. The User Section (i.e. the Unit that has raised the requisition e.g. Technical/ Planning/

Operations/ Marketing/ Administration/ any other unit) shall have to formulate the Section IV-B

(SCC) accordingly. Also, the approval of the concerned functional Director of the user section

must be taken while framing such details and before incorporating the same in the Special

(Commercial) Conditions of Contract (SCC).

3.7.3. The guidelines for preparing section-IV-B(SCC) along with corresponding cross-reference with

Section-III (GCC) provision is available in this section. As also indicated therein, the provisions

in the Special (Commercial) Conditions of Contract (SCC) will supercede the corresponding

provisions in the General (Commercial) Conditions of Contract (GCC) in case of conflict. BBNL Procurement Manual 2013 Page 13

3.7.4. Section-IV-B may have clauses on the following items/ topics which may complement/

supercede the corresponding clauses of Section-III (GCC).The list is not exhaustive and actual clauses have to be framed on case-to-case basis.

a) Delivery and Documents(refer GCC clause 6):

The delivery period will be decided on case-to-case basis considering TAC/ TSEC,

validation requirement as well as requirements of BBNL in view of the strict targets to

roll out the project. Generally six months delivery time is envisaged. The delivery

period for procurement should be four months for store items where TSEC is

available, six months where TSEC is not available but is required. The TSEC should

be completed in maximum period of two months. The delivery period might be

suitably increased in case validation of new technology equipments is involved.

Early deliveries may be accepted as per requirement of BBNL on case-to-case basis.

In turnkey projects where Installation and Commissioning is to be carried out by the supplier, the time-lines for such activities should also be defined.

b) Incidental Services (refer GCC clause 8):

Requirement of such services will depend on the nature of the goods, cost thereof etc. Some of the services will be needed along with the goods and some may be

needed separately (like maintenance service). All such aspects are to be kept in view

while formulating the requirement of the incidental services.

c) Warranty(refer GCC clause 10):

The Warranty terms may have to be elaborated keeping in view the actual project requirements. The criteria for deciding the date of commencement of the Warranty should be clearly specified in the SCC.

Suitable Clause may be incorporated in the Special (Commercial) Conditions of Contract, fixing reasonable timeframe to start warranty of the equipment after it has

been put to commercial use. This will be treated as date of commissioning for the

purpose of release of payment and calculation of liquidated damages.

d) AMC conditions:

Section-III (GCC) does not mention about the Annual Maintenance Contract (AMC)

conditions. If there is need for AMC after successful completion of the Warranty period,

then, suitable conditions for the same should be specified in Section-IV-B (SCC).

The AMC conditions should indicate the penalties, payment terms, date of

commencement, obligations of the supplier, Bank Guaranties to be furnished, etc.

Such conditions should be decided on case-to-case basis keeping in view the actual

project requirements. The AMC should be only on the cost of equipment supplied and

not on the cost of installation & commissioning, etc.

A draft of the AMC terms and Conditions should be annexed with the Section-IV-B of the tender enquiry document. Sample AMC conditions are mentioned in section-IV-B of the Standard Tender Enquiry Document in Chapter4 of this Manual.

e) Payment Terms (refer GCC clause 11):

The terms and mode of payment will depend on the milestones defined here which

may again depend upon nature of the goods, terms of delivery, requirement of incidental services, etc.

The actual payment conditions for new products or procurements having installation and AMC services may be decided on case-to-case basis and incorporated in Section-IV-B.]


The documents needed for effecting the payments are also to be specified accordingly.

f) Liquidated Damages (LD) (refer GCC clause 16):

The LD defined in Section-III (GCC) is only for the delay in supply of goods. However,

if the contract involves services such as Installation, commissioning, etc., then the penalties applicable when there is delay in executing such services should be

mentioned in Section-IV-B (SCC).

g) Change in make/ model after opening of bids(refer GCC clause 23):

In principle, change of the quoted technology/ product/ model shall not be allowed

after bid opening. However, in some tenders, model of the third party equipment,

which is not the main tendered item, might have to be changed. Requirement of such

a clause should be decided by the tender approving authority on case-to-case basis.

A sample clause is quoted as example as follows: “The bidder is required to supply

the IT hardware such as EMS, LCT, Printer etc as per the make and models quoted

in the priced BOM. In case, the quoted IT hardware is no more supplied by the

Original Equipment Manufacturer (OEM) at the time of dispatch of the tendered item,

a certificate to this effect from the original manufacturer shall be submitted by the

bidder. The bidder shall submit the next version of the model quoted in the tender.

The new model of the IT hardware so quoted shall be from the same manufacturer of

the original model quoted in the tender and will meet all the specifications of the

quoted model. Only on the confirmation of the User Section, the bidder may be

permitted to supply the new version of the IT hardware, subject to the technical

validation of the new version of the model. The new model of IT hardware shall be

supplied at the same quoted cost in the tender.”

3.8. Section-IV-C - Special (Technical) Conditions of Contract and Technical Specifications 3.8.1. Aspects to be considered while framing the Technical Requirements and Specifications are

mentioned the previous chapter in para 2.5.Section-IV-C should be prepared by the concerned user section on case-to-case basis.

3.8.2. There shall be no change in specifications once tender has been opened. Purchase orders and

supplies shall be strictly as per the specifications laid down in the tender. Delivery period

extension for purchase order, if considered, shall also be with the same specification as given in

tender. Any change in specifications after issue of tender shall be applicable to subsequent

tenders only.

3.9. Section V –Schedule of Requirements (SOR)

3.9.1. The Schedule of Requirements (SOR) should clearly indicate all the essential details of the

required goods and services, measurement unit, total quantity etc. Para 2.7 of the previous

chapter may also be referred.

3.9.2. Requirement of detailed bill of material (BOM) for each SOR item should be clearly mentioned wherever applicable. The note in Section-V of the Standard Tender Enquiry Document in

Chapter 4 may be referred.

3.9.3. If the list of requirements contains more than one schedule, each schedule should be described

in a self-contained manner along with the applicable earnest money. The period of delivery and

terms of delivery are also to be incorporated and if these two aspects differ from schedule to

schedule, the same should be properly clarified in the Schedule of Requirements.

3.10. Section VII – Price Schedule

3.10.1. There are three price schedules, Part-A, Part–B and Part-C for indigenous items, imported

items and services respectively, which are self explanatory. BBNL Procurement Manual 2013 Page 15

3.11. Pre-bid clarifications and amendments in the tender document

3.11.1. After issue of tender document, a number of queries are sometimes received and pre-bid

clarifications are issued by BBNL. Sometimes, the same clause gets clarified in contradictory

manner against different clarifications. Sometimes the original clause gets amended but the

language of new clause is not clear as the clarification is replied simply as “Yes please” or

“agreed” or “accepted”. During evaluation and subsequently while preparing special conditions

for issue of APO/ PO, lot of difficulty is faced. In this regard, the clarifications issued should be

unambiguous and if any clause is getting modified, then the amended clause should be stated in

proper language.

3.11.2. When a large number of clarifications have been issued resulting in number of changes in the

tender clauses, then after issue of the last pre-bid clarification, BBNL should issue the updated

tender document incorporating all the relevant clarifications and amended clauses just below

the original clause. If printing of the amended document may not be possible due to time

constraint, then it should be uploaded on BBNL Website. In such cases, the bidders should be

asked to submit the clause-by-clause compliance of this amended tender document only and for

evaluation the CET Members should rely only on the amended document.

***


CHAPTER - 4 4. STANDARD TENDER ENQUIRY DOCUMENT


SECTION - I.

NOTICE INVITING TENDER

BHARAT BROADBAND NETWORK LIMITED

(A Government of India Enterprise) ……………………………………………………………….

[MM Section]

DETAILED NOTICE INVITING TENDER

Tender No: …………………………………. Dated …………………

On behalf of Chairman and Managing Director, Bharat Broadband Network Limited, online

digitally sealed open tenders, on rupee payment basis, are invited from the eligible bidders for Supply, Installation and Commissioning of ………………………………………………….. The summary of requirement is given below:-

Sl Type of equipment Quantity Earnest Money for

the tender

1

2

….

2 Accessibility of Tender Document: The tender document for participating in E-tender shall be

available for downloading from ………………… at ……… Hrs onwards from http:// . This link can also be visited from the website of BBNL- http://www.bbnl.nic.in , by clicking Link “E-tenders” on home page. The Tender document shall not be available for download on or after its submission/ closing date.

3 DD / Bankers cheque of an amount of Rs. ………/- (Rupees ……………………………………. ),

in favour of Manager (Cash), BBNL, New Delhi, drawn on any scheduled bank and payable at New Delhi, shall have to be submitted towards cost of the tender along with the tender bid, failing which the tender bid will be rejected.

4 Sale of hard copy of tender Document: As BBNL has decided to use process of e-tendering

for inviting this tender, and so the hard copy of the tender will not be available for sale. 5 ELIGIBILITY CRITERIA:

<ELIGIBILITY CONDITIONS TO BE MENTIONED HERE>

6 Bid Security: The bidder shall furnish the Bid Security in one of the following ways.

a) Demand Draft/ Banker’s cheque in favour of Manager (Cash), BBNL, New Delhi payable at New Delhi and drawn on any scheduled bank.

b) Bank Guarantee in the format given in Section-VIII of the tender document in favour of

................................................... BBNL, New Delhi from any scheduled bank, and valid for 180 days from the tender opening date.


7 Last Date & Time of Submission of Tender bid:…………………..by11:30 Hrs. In case the date of

submission (opening) of bid is declared to be a holiday, the date of submission (opening) of bid will

get shifted automatically to next working day at the same scheduled time. Any change in bid opening

date due to any other unavoidable reason will be intimated to all the bidders separately. 8 Opening of Tender Bids: At 12:00 Hours of this tender closing date i.e. ……………………….. 9 Place of opening of Tender bids:

BBNL has adopted e-tendering process which offers a unique facility for ‘Public Online Tender Opening Event (TOE)’. BBNL’s Tender Opening Officers as well as authorized representatives of bidders can attend the Public Online Tender Opening Event (TOE) from the comfort of their offices. Please refer clause …… of Section ………… of Tender document for further instructions. However, authorized representatives of bidders (i.e. Supplier organization), if desire so, can attend the TOE at ………………… ……………………………………………….., where BBNL’s Tender Opening Officers would be conducting Public Online Tender Opening Event (TOE).

10 The bidder is required to submit the tender document online at the e-tender portal. Tender bids

received after due time & date will not be accepted. 11 Incomplete, ambiguous, Conditional, digitally unsealed tender bids are liable to be rejected. 12 CMD, BBNL reserves the right to accept or reject any or all tender bids without assigning any

reason. He is not bound to accept the lowest tender. 13 The bidder shall furnish a declaration under his digital signature that no addition/ deletion/

corrections have been made in the downloaded tender document being submitted and it is identical to the tender document appearing on E-tender Portal (http:// )

14 In case of any correction/ addition/ alteration/ omission in the tender document, the tender bid

shall be treated as non-responsive and shall be rejected summarily. All documents submitted in the bid offer should be preferably in English. In case the certificate viz experience, registration etc. is issued in a language other than English, the bidder shall attach an English translation of the same duly attested by the bidder & the translator, to be true copy in addition to the relevant certificate.

15 All computer generated documents should be duly attested/ signed by the issuing organisation.

Sr. Manager/ Manager

TENDERING SECTION

***


SECTION - II.

GENERAL INSTRUCTIONS TO BIDDERS II.1. DEFINITIONS

(a) "The Purchaser" means the CMD, Bharat Broadband Network Ltd. (BBNL), New Delhi

(b) "The Bidder" means the individual or firm who participates in this tender and submits its bid.

(c) "The Supplier" or “The Vendor” means the individual or firm supplying the goods

and/ or services under the contract.

(d) "The Goods" means all the equipment, machinery, and/or other materials including services which the Supplier is required to supply to the Purchaser under the contract.

(e) "The Advance Purchase Order" or “Letter of Intent” means the intention of

Purchaser to place the Purchase Order on the bidder.

(f) "The Purchase Order" means the order placed by the Purchaser on the Supplier signed by the Purchaser including all attachments and appendices thereto and all documents incorporated by reference therein. The purchase order shall be deemed as "Contract" appearing in the document.

(g) "The Contract Price" means the price payable to the Supplier under the purchase

order for the full and proper performance of its contractual obligations.

(h) "Validation" is a process of testing the equipment for assessing its conformity to Technical Specifications and the Generic Requirements by BBNL. Validation is carried out by deploying the equipment in the field environment and includes stability, reliability and environmental tests.

(i) "Telecom Service Provider" means any Telecom operator in India, who is licensed

by the Department of Telecommunications (DOT), Government of India to provide telecom services to the general public or to the other DOT licensed Telecom

operators. "Telecom Service Provider" also refers to any Telecom operator in other countries providing telecom services to general public of that country or to other

telecom operators of the same country.

(j) “Successful Bidder(s)” means the bidder(s) to whom work in this tender is awarded. II.2. ELIGIBLE BIDDER: II.2.1. Please refer Section – IV-A for eligibility conditions II.3. COST OF BIDDING II.3.1. The bidder shall bear all costs associated with the preparation and submission of the bid.

The Purchaser will, in no case, be responsible or liable for these costs, regardless of the conduct or outcome of the biding process.

II.4. DOCUMENTS REQUIRED II.4.1. The goods required to be supplied, bidding procedures and contract terms and conditions

are prescribed in the Bid Documents. The Bid documents include :

(a) Notice Inviting Tender

(b) General Instructions to Bidders

(c) General (Commercial) Conditions of Contract


(d) Special Instructions to Bidders and Eligibility Conditions

(e) Special (Commercial) Conditions of Contract, if any

(f) Special (Technical) Conditions of Contract and Technical Specifications

(g) Schedule of Requirements

(h) Bid Form

(i) Price Schedules

(j) Bid Security Form

(k) Performance Security Bond Form

(l) Letter of authorization to attend bid opening. II.4.2. The Bidder is expected to examine all instructions, forms, terms and specifications in the Bid

Documents and clarifications/ amendments/ addenda, if any. Failure to furnish all information required as per the Bid Documents or submission of the bids not substantially responsive to the Bid Documents in every respect will be at the bidder's risk and may result in rejection of the bid.

II.5. CLARIFICATION OF BID DOCUMENTS II.5.1. A prospective bidder, requiring any clarification on the Bid Documents shall notify the Purchaser

in writing or by FAX at the Purchaser's mailing address indicated in the invitation of Bid. The

Purchaser shall respond in writing to any request for the clarification of the Bid Documents,

which it receives not later than two weeks prior to the date of opening of the Tenders. Copies of

the query (without identifying the source) and clarifications by the Purchaser shall be sent to all

the prospective bidders who have received the bid documents.

II.5.2. Any clarification issued by BBNL in response to query raised by prospective bidders shall

form an integral part of bid documents and it may amount to an amendment of relevant clauses of the bid documents.

II.6. AMENDMENT OF BID DOCUMENTS II.6.1. At any time, prior to the date of submission of Bids, the Purchaser may, for any reason,

whether at its own initiative or in response to a clarification requested by a prospective bidder, modify bid documents by amendments.

II.6.2. The amendments shall be notified in writing through e-tendering portal to all prospective

bidders on the address intimated at the time of purchase of the bid document from the purchaser and these amendments will be binding on them.

II.6.3. In order to afford prospective bidders a reasonable time to take the amendment into account

in preparing their bids, the purchaser may, at its discretion, extend the deadline for the submission of bids suitably.

II.7. DOCUMENTS COMPRISING THE BID II.7.1. The bid prepared by the bidder shall comprise the following components:

(a) Documentary evidence to establish that the bidder is eligible to bid and is qualified to

perform the contract if its bid is accepted.

(b) Bid Security furnished in accordance with clause 12.

(c) A Clause by Clause compliance as per clause 11.2 (c) BBNL Procurement Manual 2013 Page 21

(d) A Bid form and price schedule completed in accordance with clause 8 & 9. II.8. BID FORM II.8.1. The bidder shall complete the bid form and appropriate Price Schedule furnished in the Bid

Documents, indicating the goods to be supplied, brief description of the goods, quantity and prices as per section VI.

II.9. BID PRICES II.9.1. The bidder shall give the total composite price inclusive of all Levies & Taxes i.e. Sales Tax

& Excise, packing, forwarding, freight and insurance etc. but excluding Octroi/ Entry Tax

which will be paid extra as per actuals, wherever applicable. The basic unit price and all

other components of the price need to be individually indicated against the goods it

proposes to supply under the contract as per the price schedule given in Section VII. Prices

of incidental services should also be quoted. The offer shall be firm in Indian Rupees. No

Foreign exchange will be made available by the purchaser. II.9.2. Prices indicated in the Price Schedule shall be entered in the following manner :

(a) The Basic Unit price (Ex-Factory Price) of the goods, Excise duty, Sales Tax, Freight, Forwarding, Packing, Insurance and any other Levies/ Charges already paid or payable by the supplier shall be quoted separately item wise.

(b) The supplier shall quote as per price schedule given in section VII for all the items

given in schedule of requirement. II.9.3. A bid submitted with an adjustable price quotation will be treated as non-responsive and

rejected.

II.9.4. The prices quoted by the bidder shall be in sufficient detail to enable the Purchaser to arrive

at the price of equipment/system offered.

II.9.5. DISCOUNT, if any, offered by the bidders shall not be considered unless specifically

indicated in the price schedule. Bidders desiring to offer discount shall therefore modify their offers suitably while quoting and shall quote clearly net price taking all such factors like Discount, free supply, etc, into account.

II.9.6. The price approved by BBNL for procurement will be inclusive of levies and taxes, packing,

forwarding, freight and insurance as mentioned in clause 9.1 subject to other terms and condition as stipulated in clause 22.2 of Sec. II and clause 11 of Sec. III of Bid-document. Unloading charges at the consignee end shall be borne by the supplier and no separate charges are payable for transportation to individual sites for installation.

II.10. DOCUMENTS ESTABLISHING BIDDER'S ELIGIBILITY AND QUALIFICATION II.10.1. The bidder shall furnish, as part of the bid documents establishing the bidder's eligibility, the

following documents or whichever is required as per terms and conditions of Bid Documents.

(a) Certificate of Incorporation.

(b) Article or Memorandum of Association or partnership deed or proprietorship deed as the case may be.

(c) Registration certificate from State Director of Industries or from Secretariat for

Industrial Approval (SIA), Ministry of Industries, Government of India.

(d) Approval from Reserve Bank of India/ SIA in case of foreign collaboration.

(e) Latest and valid MSEs Certificate with SC/ ST status of Micro and Small Enterprises issued by Appropriate Authority, if applicable.


(f) Type Approval Certificate given by Telecom Engineering Centre (TEC)/ TSEC issued

by the Quality Assurance Circle of BSNL or proof of having applied for TSEC (Copy of Form QF 103 be attached) (if applicable).

(g) Undertaking duly signed by front bidder and its technology/ consortium partner stating

that both of them shall be liable for due performance of the contract jointly and severally as per clause 12.7(d) (if applicable).

(h) Power of Attorney as per clause 14.4 (a) and (d) and authorization for executing the

power of Attorney as per clause 14.4 (b) or (c).

(i) List of all Directors including their name(s), Director Identification Number(s) (DIN) and address(es) alongwith contact telephone numbers of office and residence.

(j) Certificates from all Directors of the bidder stating that none of their near relatives are

working in BBNL in accordance with clause 34.

(k) Additional documents to establish the eligibility and qualification of bidder as specified in Section-I and Section-IV-A.

II.10.2. Documentary evidence for financial and technical capability

(a) The bidder shall furnish Annual Report and/ or a certificate from its bankers as an

evidence that he has financial capability to perform the contract.

(b) The bidder shall furnish documentary evidence about technical and production capability necessary to perform the contract.

II.10.3. In order to enable the Purchaser to assess the provenness of the system offered, the bidder

shall provide documentary evidence regarding the system being offered by him.

II.10.4. The offered product has to be type approved. For this purpose, the supplier shall submit a

sample type for evaluation. The sample would be evaluated for its ability to meet the

technical specifications, manufacturability, reliability, testability, ease of installation,

maintainability etc. Necessary documents to substantiate these attributes will have to be

submitted at the time of application for approval by the supplier for obtaining type approval.

In case goods offered have already been type approved/ validated by the Purchaser,

documentary evidence to this effect shall be submitted by the bidder.

II.10.5. A signed undertaking from Authorised Signatory of the bidder that shall certify that all

components/ parts/ assembly/ software used in the Desktops and Servers like Hard disk, Monitors, Memory etc. shall be original, new components/ parts/ assembly/ software and that no refurbished/ duplicate/ second hand components/ parts/ assembly/ software are being used or shall be used.

II.10.6. For supply of any software i.e. operating system or any applications software the bidder

should submit a Certificate Of Authenticity (COA), signed by Authorised Signatory stating that all Software supplied are authentic and legal copy is/are being supplied.

II.11. DOCUMENTS ESTABLISHING GOOD'S CONFORMITY TO BID DOCUMENTS II.11.1. Pursuant to clause 7, the bidder shall furnish, as part of its bid, documents establishing the

conformity of its bid to the Bid Documents of all goods and services which he proposes to supply under the contract.

II.11.2. The documentary evidences of the "goods and services" conformity to the Bid Documents,

may be, in the form of literature, drawings, data etc. and the bidder shall furnish :

(a) a detailed description of goods with essential technical and performance


characteristics;

(b) a list, giving full particulars including available sources and current prices of all spare

parts, special tools, etc., necessary for the proper and continuous functioning of the goods for a period of three years following commencement of use of the goods by the purchaser, and

(c) a clause-by-clause compliance on the purchaser's Technical Specifications and

Commercial Conditions demonstrating substantial responsiveness to the Technical

Specifications, Commercial Conditions and Special Conditions. In case of deviations,

a statement of the deviations and exception to the provision of the Technical

Specifications, Commercial Conditions and Special Conditions shall be given by the

bidder. A bid without clause-by-clause compliance of the Technical Specifications

(Section IV-C), Commercial Conditions (Section III) and Special Conditions (Section

IV) shall not be considered. II.11.3. For the purpose of compliance to be furnished pursuant to the clauseII.11.2(c) above, the

bidder shall note that the standards for the workmanship, material and equipment and reference to the brand names or catalogue number, designated by the Purchaser in its Technical specifications are intended to be descriptive only and not restrictive.

II.12. BID SECURITY II.12.1. Pursuant to clause 7, the bidder shall furnish, as part of its bid, a bid security for an amount

mentioned in Section-IV-A. The bidders (MSEs) who are registered with Appropriate Authority are exempted from payment of bid security:

(a) A proof regarding registration of MSE with Appropriate Authority for the tendered

items will have to be attached along with the bid. II.12.2. The bid security is required to protect the purchaser against the risk of bidder's conduct,

which would warrant the forfeiture of bid security pursuant to para 12.7.

II.12.3. The bid security shall be in the form of a bank Guarantee issued by a scheduled bank in

favour of the purchaser, valid for a period of 180 days from the date of tender opening. Bid security in the form of Account Payee Demand Draft or Banker’s Cheque, safeguarding the purchaser’s interest in all respects, shall also be acceptable. However, no interest shall be payable on this account.

II.12.4. A bid not secured in accordance with para 12.1 & 12.3 shall be rejected by the Purchaser

being non-responsive at the bid opening stage.

II.12.5. The bid security of the unsuccessful bidder will be discharged/ returned as promptly as

possible but not later than 30 days after the expiry of the period of the bid validity prescribed by the purchaser pursuant to clause 13.


II.12.6. The successful bidder's bid security will be discharged upon the bidder's acceptance of the

advance purchase order satisfactorily in accordance with clause 27 and furnishing the performance security.

II.12.7. The bid security may be forfeited :

(a) If the bidder withdraws or amends its bid or impairs or derogates from the bid in any respect during the period of bid validity specified by the bidder in the Bid form or extended subsequently, or

(b) In the case of successful bidder, if the bidder fails :

(i) to sign the contract in accordance with clause 28 or

(ii) to furnish performance security within the specified time in accordance with

clause 27.

(c) In both the above cases, i.e 12.7 (a) & (b), the bidder will not be eligible to participate in the tender for same item for one year from the date of issue of APO. The bidder will not approach the court against the decision of BBNL in this regard.

(d) The front bidder shall submit an irrevocable undertaking duly singed by it and its

technology/consortium partner stating that both of them i.e. the front bidder and its technology/consortium partner shall be liable for due performance of the contract jointly and severally, failing which both of them shall be liable to be barred from having any business dealing with BBNL for a period of three years.

II.13. PERIOD OF VALIDITY OF BIDS II.13.1. Bid shall remain valid for 150 days from the date of opening of bids prescribed by the

purchaser pursuant to clause 19.1. A bid valid for a shorter period shall be rejected by the purchaser being non-responsive.

II.13.2. In exceptional circumstances, the purchaser may request the consent of the bidder for an

extension to the period of bid validity. The request and the response thereto shall be made in writing. The bid security provided under clause 12 shall also be suitably extended. The bidder may refuse the request without forfeiting its bid security. A bidder accepting the request and granting extension will not be permitted to modify its bid.

II.14. FORMAT AND SIGNING OF BID II.14.1. The bidder shall prepare one complete set of original bid and make 4 copies of the same

clearly marking one as 'Original Bid' and remaining 4 as 'Copy No:1, Copy No:2, Copy No:3, Copy No:4'. In the event of any discrepancy between the copies, the original shall govern. The copy of quality manual and Article or Memorandum of Association may be provided in original copy and copy no:1.

II.14.2. The original and all copies of Bid shall be typed or printed and all the pages numbered

consecutively and shall be signed by the bidder or a person or persons duly authorized to bind the bidder to the contract. The letter of authorization shall be indicated by written power-of-attorney accompanying the bid. All pages of the original bid, except for un-amended printed literatures, shall be signed by the person or persons signing the bid. The bids submitted shall be sealed properly.

II.14.3. The bid shall contain no interlineations, erasures or overwriting except as necessary to

correct errors made by the bidder in which case such corrections shall be signed by the person or persons signing the bid.

II.14.4. Power of Attorney BBNL Procurement Manual 2013 Page 25

(a) The power of Attorney should be submitted and executed on the non-judicial stamp paper

of appropriate value as prevailing in the respective states(s) and the same be attested by a Notary public or registered before Sub-registrar of the state(s) concerned.

(b) The power of Attorney be executed by a person who has been authorized by the

Board of Directors of the bidder in this regard, on behalf of the Company/institution/Body Corporate.

(c) In case of the bidder being a firm, the said Power of Attorney should be executed by

all the partner(s) in favour of the said Attorney.

(d) Attestation of the specimen signatures of such authorized signatory of the bid by the Company’s/ firm’s bankers shall be furnished. Name, designation, Phone number, mobile number, email address and postal address of the authorized signatory shall be provided.

II.15. SEALING AND MARKING OF BIDS II.15.1. The bid should be submitted in two covers. The first cover shall contain the original and four

copies of the bid duly marked 'ORIGINAL' & 'COPY'. The second cover shall contain documents establishing bidder's eligibility as per Clause 2 along with Bid Security as per Clause 12 (refer Section-IV-A of the Bid Document). Both the covers should be sealed separately by the personal seal of the bidder.

(a) The envelopes shall be addressed to the purchaser at the address mentioned in the

Detailed NIT (Section-I):

(b) The envelope shall bear (the project name), the tender number and the words 'DO NOT OPEN BEFORE' (due date & time).

(c) The inner and outer envelopes shall indicate the name and address of the bidders to

enable the bid to be return unopened in case it is declared 'late' or rejected.

(d) Tender may be sent by registered post or delivered in person on above mentioned address (address is given in Clause 15.2 (a) above). The responsibility for ensuring that the tenders are delivered in time would vest with the bidder.

(e) Bids delivered in person on the day of tender opening shall be delivered upto 11.30

Hrs. to Manager, MM Cell at the venue (address is given in NIT} of the tender opening. The purchaser shall not be responsible if the bids are delivered elsewhere.

(f) Venue date and time of tender opening shall be as mentioned in the Notice Inviting

Tender (NIT) i.e .Section-I. If due to administrative reasons, the venue of Bid opening is changed, it will be displayed prominently on notice board and also on BBNL website. .

II.15.2. If both the envelopes are not sealed and marked as required at para 15.1 and 15.2, the bid

shall be rejected. II.16. SUBMISSION OF BIDS II.16.1. Bids must be received by the Purchaser online as per instructions in Section IV-A not later

than the specified date and time indicated in the Detailed NIT (Section-I).

II.16.2. The Purchaser may, at its discretion, extend this deadline for the submission of bids by

amending the Bid Documents in accordance with clause 6 in which case all rights and obligations of the purchaser and bidders previously subject to the deadline will thereafter be subjected to the deadline as extended.

II.16.3. The bidder shall submit its bid offer against a set of bid documents purchased by him for all or

some of the systems/equipment as per requirement of the Bid Documents. He may include alternate offer, if permissible as per the bid. However not more than one independent and


complete offer shall be permitted from the bidder.

II.17. LATE BIDS II.17.1. Any bid received by the purchaser after the deadline for submission of bids prescribed by

the purchaser pursuant to clause 16, shall be rejected. II.18. MODIFICATION AND WITHDRAWAL OF BIDS II.18.1. The bidder may modify, revise or withdraw its bid after submission prior to the deadline

prescribed for submission of bid, provided that the written notice of the modification/ revision or withdrawal is received by the purchaser prior to the deadline prescribed for submission of bids.

II.18.2. The bidder's modification, revision or withdrawal shall be prepared, sealed, marked and

dispatched/ online submitted as required in the case of bid submission in accordance with the provision of clause 15. A withdrawal notice may also be sent by FAX but followed by a signed confirmation copy by post not later than the deadline for submission of bids.

II.18.3. Subject to clause 20, no bid shall be modified subsequent to the deadline for submission of

bids. II.19. OPENING OF BIDS BY PURCHASER II.19.1. The purchaser shall open bids online in the presence of bidders or their authorized

representatives who chose to attend, at the time specified in the Detailed NIT (Section-I). The bidder's representatives, who are present, shall sign in an attendance register. Authority letter to this effect shall be submitted by the bidders before they are allowed to participate in bid opening (A Format is given in section X).

II.19.2. A maximum of two representatives of any bidder shall be authorized and permitted to attend

the bid opening.

II.19.3. The bidder's names, Bid prices, modifications, bid withdrawals and such other details as the

purchaser, at its discretion, may consider appropriate will be announced at the time of opening.

II.19.4. The date fixed for opening of bids, if subsequently declared as holiday by BBNL, the revised

date of schedule will be notified. However, in absence of such notification, the bids will be opened on next working day, time and venue remaining unaltered.

II.20. CLARIFICATION OF BIDS II.20.1. To assist in the examination, evaluation and comparison of bids, the purchaser may, at its

discretion ask the bidder for the clarification of its bid. The request for the clarification and the response shall be in writing. However, no post bid clarification at the initiative of the bidder shall be entertained.

II.21. PRELIMINARY EVALUATION II.21.1. Purchaser shall evaluate the bids to determine whether they are complete, whether any

computational errors have been made, whether required sureties have been furnished, whether the documents have been properly signed and whether the bids are generally in order.

II.21.2. Arithmetical errors shall be rectified on the following basis. If there is a discrepancy between the

unit price and total price that is obtained by multiplying the unit price and quantity, the unit


price shall prevail and the total price shall be corrected by the purchaser. If there is a discrepancy between words and figures, the amount in words shall prevail. If the supplier does not accept the correction of the errors, its bid shall be rejected.

II.21.3. Prior to the detailed evaluation pursuant to clause 22, the Purchaser will determine the

substantial responsiveness of each bid to the Bid Document. For purposes of these

clauses, a substantially responsive bid is one which confirms to all the terms and conditions

of the Bid Documents without material deviations. The purchaser's determination of bid's

responsiveness shall be based on the contents of the bid itself without recourse to extrinsic

evidence.

II.21.4. A bid, determined as substantially non-responsive will be rejected by the purchaser and

shall not subsequent to the bid opening be made responsive by the bidder by correction of the non-conformity.

II.21.5. The Purchaser may waive any minor infirmity or non-conformity or irregularity in a bid which

doesn't constitute a material deviation, provided such waiver doesn't prejudice or affect the relative ranking of any bidder.

II.22. EVALUATION AND COMPARISON OF SUBSTANTIALLY RESPONSIVE BIDS II.22.1. The Purchaser shall evaluate in detail and compare the bids previously determined to be

substantially responsive pursuant to clause 21.

II.22.2. The evaluation and comparison of responsive bids shall be done on all-inclusive basis on

the prices of the goods offered inclusive of Duties and taxes, Sales Tax, Packing,

Forwarding, Freight and Insurance charges etc. as indicated in Col. 16 of the price schedule

in the Sec.VII of the Bid-document. As stipulated in clause 9.1, Octroi/ Entry Taxes are not

to be included in the composite price and hence the same will not be considered for the

purpose of evaluation and comparison of responsive bids. However, Octroi/ Entry Taxes will

be paid extra. as per actuals wherever applicable on production of proof of payment/

relevant invoices/ documents.

(a) “Duties & Taxes for which the firm has to furnish Cenvatable Challans/ Invoices will

be indicated separately in the PO/ APO.

(b) Vendors should furnish the correct E.D./Customs tariff Head in the price Schedule. If the credit for the Duties and Taxes under CENVAT Credit Rules, 2004 is found to be not admissible at any stage subsequently owing to wrong furnishing of Tariff Head, then the vendors will be liable to refund such non-admissible amount, if already paid, along with interest and penalty if charged by the concerned authority.

(c) In case the Duties & Taxes which are non CENVAT-able as per the quotes indicated

in the price schedule by the vendors and subsequently at any stage it is found that

Credit for such Duties & Taxes is admissible as per CENVAT Credit Rules, 2004/

VAT rules, then the vendors will be liable to refund the amount equivalent to such

Duties & Taxes if already paid to them. However, the purchaser may allow the

supplier to submit necessary documents in this regard which may enable the

purchaser to avail the CENVAT credit provided such credit is still available for the

amount so paid as per CENVAT Credit Rules 2004/ VAT Rules.

(d) The purchaser reserves the right to ask the bidders to submit documentary proof confirming the correct Tariff Head from the E.D./Customs authority where the Tariff Head furnished against the particular tendered item by different bidders differs from each other or the same is found apparently not furnished in accordance with E.D./Customs Tariff notifications.


(e) If the supplier fails to furnish necessary supporting documents i.e. Excise/ Customs

invoices etc. in respect of the Duties/ taxes which are Cenvatable, the amount pertaining to such Duties/ Taxes will be deducted from the payment due to the firm.

II.23. CONTACTING THE PURCHASER II.23.1. Subject to Clause 20, no bidder shall try to influence the Purchaser on any matter relating to

its bid, from the time of the bid opening till the time the contract is awarded.

II.23.2. Any effort by a bidder to modify its bid or influence the purchaser in the purchaser's bid

evaluation, bid comparison or contract award decision shall result in the rejection of the bid. II.24. PLACEMENT OF ORDER II.24.1. The Purchaser shall consider placement of orders for commercial supplies only on those

eligible bidders whose offers have been found technically, commercially and financially acceptable and whose goods have been type approved/ validated by the purchaser. The Purchaser reserves the right to counter offer price(s) against price(s) quoted by any bidder.

II.24.2. The ordering price of any bidder shall not exceed the lowest evaluated package price.

II.24.3. The purchaser reserves the right for the placement of order of entire tendered quantity on

the bidder with the lowest evaluated price. II.25. PURCHASER'S RIGHT TO VARY QUANTITIES

(a) BBNL will have the right to increase or decrease up to 25% of the quantity of goods

and services specified in the schedule of requirements without any change in the unit

price or other terms and conditions at the time of award of contract or additional

quantities upto 50% of goods and services contained in the running tender/ contract

can be ordered within a period of twelve months from the earliest date of acceptance

of APO (earliest one) at the same rate or a rate negotiated (downwardly) with the

existing venders considering the reasonability of rates based on prevailing market

conditions and the impact of reduction in duties and taxes etc and supplies to be

obtained within delivery period scheduled afresh.

(b) In exceptional situation where the requirement is of an emergent nature and it is

necessary to ensure continued supplies from the existing venders, the purchaser

reserves the right to place repeat order up to 100% of the quantities of goods and

services contained in the running tender/ contract within a period of twelve months

from the earliest date of acceptance of APO at the same rate or a rate negotiated

(downwardly) with the existing venders considering the reasonability of rates based

on prevailing market conditions and the impact of reduction in duties and taxes etc.

Exceptional situation and emergent nature should be spelt out clearly detailing the

justification as well as benefits accrued out of it and loss incurred in case this

provision is not invoked and approved by the authority competent to accord

administrative and financial approval for the procurement calculated on the basis of

total procurement i.e. initial and proposed add-on quantity.

(c) BBNL Board will have full power to accord administrative approval and financial concurrence to procure any equipment/ material in any quantity by any means in the exigencies of services and interest of BBNL.

II.26. PURCHASER'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL BIDS II.26.1. The Purchaser reserves the right to accept or reject any bid, and to annul the bidding process

and reject all bids, at any time prior to award of contract without assigning any reason whatsoever and without thereby incurring any liability to the affected bidder or bidders on the


grounds of purchaser's action.

II.27. ISSUE OF ADVANCE PURCHASE ORDER II.27.1. The issue of an Advance Purchase Order shall constitute the intention of the Purchaser to

enter into contract with the bidder.

II.27.2. The bidder shall within 14 days of issue of the advance purchase order, give its acceptance

along with performance security in conformity with proforma enclosed in section IX provided with the bid document.

II.28. SIGNING OF CONTRACT II.28.1. The issue of Purchase order shall constitute the award of contract on the bidder.

II.28.2. Upon the successful bidder furnishing performance security pursuant to clause 27, the

Purchaser shall discharge the bid security in pursuant to clause 12. II.29. ANNULMENT OF AWARD II.29.1. Failure of the successful bidder to comply with the requirement of clause 28 shall constitute

sufficient ground for the annulment of the award and the forfeiture of the bid security in which event the Purchaser may make the award to any other bidder at the discretion of the purchaser or call for new bids.

II.30. QUALITY ASSURANCE REQUIREMENTS II.30.1. The supplier shall have Quality Management System supported and evidenced by the

following :

(a) A Quality Policy.

(b) A management representative with authority and responsibility for fulfilling QA requirements and for interfacing with purchaser in the matters of Quality.

(c) Procedure for controlling design/production engineering, materials, choice of

components/vendors, manufacturing and packaging process for supplying quality products.

(d) System of Inward Good Inspection.

(e) System to calibrate and maintain required measuring and test equipment.

(f) System for tracing the cause for non-conformance (traceability) and segregating

product which don't conform to specifications.

(g) Configuration management and change-control mechanism.

(h) A quality plan for the product.

(i) Periodical internal quality audits.

(j) A 'Quality Manual' detailing the above Or infrastructure assessment certificate and Type Approval Certificate (TAC)/ Technical Specifications Evaluation Certificate (TSEC) issued by "QA Circle of BSNL" shall be furnished.

II.31. REJECTION OF BIDS II.31.1. While all the conditions specified in the Bid documents are critical and are to be complied,

special attention of bidder is invited to the following clauses of the bid documents. Non-compliance of any one of which shall result in rejection of the bid.


(a) Clauses 12.1, 12.3 & 13.1 of Section II: The bids will be rejected at opening stage if

Bid security is not submitted as per Clauses 12.1 & 12.3 and bid validity is less than the period prescribed in Clause 13.1 mentioned above.

(b) Clause 2 & 10 of Section II: If the eligibility condition as per clause 2 of Section II is

not met and/or documents prescribed to establish the eligibility as per Clause 10 of section II are not enclosed, the bids will be rejected without further evaluation.

(c) Clause 11.2 (c) of Section II: If clause-by-clause compliance and deviation

statements as prescribed are not given, the bid will be rejected at the stage of primary evaluation. In case of no deviations, a statement to that effect must be given.

(d) Section III General Commercial conditions, Section IV-A Special Instructions to

Bidders, Section IV-B Special (Commercial) Conditions of Contract & Section IV-C Special (Technical) Conditions of Contract and Technical Specifications: Compliance if given using ambiguous words like "Noted", "Understood", "Noted & Understood" shall not be accepted as complied. Mere "Complied" will also be not sufficient, reference to the enclosed documents showing compliances must be given.

(e) Section VII Price Schedule: Prices are not filled in as prescribed in price schedule.

(f) Section II clause 9.5 on discount which is reproduced as follows:"Discount, if any,

offered by the bidder shall not be considered unless specifically indicated in the price schedule. Bidders desiring to offer discount shall therefore modify their offer suitably while quoting and shall quote clearly net price taking all such factors like Discount, free supply etc. into account".

II.31.2. Before outright rejection of the Bid by Bid-opening team for non-compliance of any of the

provisions mentioned in clause 31.1 of Section II and clause 2(i) of Section IV though, the

bidder company is given opportunity to explain their position, however if the person

representing the company is not satisfied with the decision of the Bid opening team, he/

they can submit the representation to the Bid opening team immediately but in no case after

closing of the tender process with full justification quoting specifically the violation of tender

condition if any.

II.31.3. Bid opening team will not return the bids submitted by the bidders on the date of tender

opening even if it is liable for rejection and will preserve the bids in sealed cover as submitted by taking the signatures of some of the desirous representatives of the participating bidder/ companies present on the occasion.

II.31.4. The in-charge of Bid opening team will mention the number of bids with the name of the

company found unsuitable for further processing on the date of tender opening and number

of representations received in Bid opening Minutes and if Bid opening team is satisfied with

the argument of the bidder/company mentioned in their representation and feel that there is

prima-facie fact for consideration, the in-charge of the bid opening team will submit the case

for review to Director (Planning) in Corporate Office as early as possible preferably on next

working day and decision to this effect should be communicated to the bidder company

within a week positively. Bids found liable for rejection and kept preserved on the date of

tender opening will be returned to the bidders after issue of P.O. against the instant tender.

II.31.5. If the reviewing officer finds it fit to open the bid of the petitioner, this should be done by

giving three (working) days notice to all the participating bidders to give opportunity to desirous participants to be present on the occasion.

II.32. PURCHASER’S RIGHT TO DISQUALIFY II.32.1. Purchaser reserves the right to disqualify the supplier for a suitable period who habitually failed

to supply the equipment in time. Further, the suppliers whose equipment do not perform


satisfactory in the field in accordance with the specifications may also be disqualified for a suitable period as decided by the purchaser.

II.33. PURCHASER’S RIGHT TO BAN BUSINESS DEALINGS II.33.1. Purchaser reserves the right to ban business dealings with a bidder for a suitable period in

case he fails to honour its bid without sufficient grounds. II.34. NON-RELATIONSHIP CERTIFICATE II.34.1. The bidder should give a certificate that none of his/her near relative is working in the units

as defined below where he is going to apply for the tender. In case of proprietorship firm,

certificate will be given by the proprietor. For partnership firm, certificate will be given by all

the partners. In case of limited company, certificate will be given by all the Directors of the

company excluding Government of India/Financial institution nominees and independent

non-Official part time Directors appointed by Govt. of India or the Governor of the state and

full time Directors of PSUs both state and central.

II.34.2. Due to any breach of these conditions by the company or firm or any other person the

tender will be cancelled and Bid Security will be forfeited at any stage whenever it is noticed and BBNL will not pay any damage to the company or firm or the concerned person. The company or firm or the person will also be debarred for further participation in the concerned unit.

II.34.3. The near relatives for this purpose are defined as:-

(a) Members of a Hindu undivided family.

(b) They are husband and wife.

(c) The one is related to the other in the manner as father, mother, son(s) & Son's wife (daughter in law), Daughter(s) and daughter's husband (son in law), brother(s) and brother's wife, sister(s) and sister's husband (brother in law).

II.34.4. The format of the certificate to be given is "I…………..s/o…….……r/o……………..hereby

certify that none of my relative(s) as defined in the tender document is/are employed in BBNL unit as per details given in tender document. In case at any stage, it is found that the information given by me is false/ incorrect, BBNL shall have the absolute right to take any action as deemed fit/without any prior intimation to me."

II.35. VERIFICATION OF DOCUMENTS AND CERTIFICATES II.35.1. The bidder will verify the genuineness and correctness of all documents and certificates,

including experience/ performance certificates, issued either by the bidder or any other firm/ associate before submitting them in the bid. The onus of proving genuineness of the submitted documents would rest with the bidder.

II.35.2. As per requirement of the tender’s conditions, if any document/ paper/ certificate submitted

by the participant bidder is found to be false/ fabricated/ tempered/ manipulated at any

stage during bid evaluation or award of contract, then the bid security (EMBG) of the bidder

would be forfeited and the bidder would be disqualified from the tender. Action would also

be taken for banning of business dealing with the defaulting firm. In case contract has

already awarded to the bidder, then PBG would be forfeited and the contract would be

rescind/ annulled and BBNL would be at liberty to procure the ordered goods and services

from any other source at the risk and cost of the defaulting bidder. Action would also be

taken for banning business dealing with the defaulting firm.

II.35.3. [Hint: Mandatory Licensing requirements with regards to security related concerns issued by


the Government of India from time-to-time shall be strictly followed and appropriate clauses

shall be added in all bid documents. Necessary guidelines in this regard shall be issued separately.]

*****


SECTION - III.

GENERAL (COMMERCIAL) CONDITIONS OF CONTRACT III.1. APPLICATION III.1.1. The general condition shall apply in contracts made by the purchaser for the procurement of

goods and/ or services. III.2. STANDARDS III.2.1. The goods and/ or services supplied under this contract shall conform to the standards

prescribed in the Technical Specifications mentioned in section IV-B. III.3. PATENT RIGHTS III.3.1. The supplier shall indemnify the purchaser against all third-party claims of infringement of

patent, trademark or industrial design rights arising from use of the goods or any part thereof in Indian Telecom Network.

III.4. PERFORMANCE SECURITY III.4.1. All suppliers (including MSEs who are registered with Appropriate Authority) shall furnish

performance security to the purchaser for an amount equal to 5% of the value of purchase order within 14 days from the date of issue of Advance Purchase Order by the Purchaser.

III.4.2. The proceeds of the performance security shall be payable to the Purchaser as compensation for any loss resulting from the supplier's failure to complete its obligations under the contract.

III.4.3. The performance security Bond shall be in the form of Bank Guarantee issued by a

scheduled Bank and in the form provided in 'Section IX' of this Bid Document.

III.4.4. The performance security Bond will be discharged by the Purchaser after completion of the

supplier's performance obligations including any warranty obligations under the contract. III.5. INSPECTION AND TESTS III.5.1. The Purchaser or its representative shall have the right to inspect and test the goods as per

prescribed test schedules for their conformity to the specifications. Where the Purchaser

decides to conduct such tests on the premises of the supplier or its subcontractor(s), all

reasonable facilities and assistance like Testing instruments and other test gadgets

including access to drawings and production data shall be furnished to the inspectors at no

charge to the purchaser.

III.5.2. Should any inspected or tested goods fail to conform to the specifications the purchaser

may reject them and the supplier shall either replace the rejected goods or make all alterations necessary to meet Specification requirements free of cost to the purchaser.

III.5.3. Notwithstanding the pre-supply tests and inspections prescribed in clause 5.1 & 5.2 above,

the equipment and accessories on receipt in the Purchaser's premises will also be tested during and after installation before "take over" and if any equipment or part thereof is found defective, the same shall be replaced free of all cost to the purchaser as laid down in clause 5.4 below.


III.5.4. If any equipment or any part thereof, before it is taken over under clause 5.5, is found

defective or fails to fulfill the requirements of the contract, the inspector shall give the

Supplier notice setting forth details of such defects or failure and the supplier shall make the

defective equipment good, or alter the same to make it comply with the requirements of the

contract forthwith and in any case within a period not exceeding three months of the initial

report. These replacements shall be made by the supplier free of all charges at site. Should

it fail to do so within this time, the purchaser reserves the discretion to reject and replace at

the cost of the supplier the whole or any portion of equipment as the case may be, which is

defective or fails to fulfill the requirements of the contract. The cost of any such replacement

made by the purchaser shall be deducted from the amount payable to the supplier.

III.5.5. When the performance tests called for have been successfully carried out, the inspector/

ultimate consignee will forthwith issue a Taking Over Certificate. The inspector/ultimate

consignee shall not delay the issue of any "taking Over Certificate" contemplated by this

clause on account of minor defects in the equipment which do not materially affect the

commercial use thereof provided that the supplier shall undertake to make good the same

in a time period not exceeding six months. The Taking Over Certificate shall be issued by

the ultimate consignee within six weeks of successful completion of tests. In this case,

BCPC (Bills Copy Payable Challan) shall be equivalent to "Taking Over Certificate",

issuance of which shall certify receipt of goods in safe and sound condition. However, they

shall not discharge the supplier of their warranty obligation. BCPC in respect of last

consignment against the purchase order will be equivalent to "Taking Over Certificate".

III.5.6. Nothing in clause 5 shall in any way release the Supplier from any warranty or other

obligations under this contract. III.6. DELIVERY AND DOCUMENTS III.6.1. Delivery of the goods and documents shall be made by the supplier in accordance with the

terms specified by the purchaser in its schedule of requirements and special conditions of contracts, and the goods shall remain at the risk of the supplier until delivery has been completed. The delivery of the equipment shall be to the ultimate consignee as given in the purchase order.

III.6.2. Unless specified in Section-IV-B, the delivery of the goods and documents shall be

completed within 6 months from the date of issue of Advance Purchase Order, with the first two months for lead period and circle-wise evenly distributed supplies expected in remaining four months. The actual delivery schedule will be given in purchase order.

III.6.3. All Technical assistance for installation, commissioning and monitoring of the equipment

shall be provided by the Supplier at no extra cost during laboratory evaluation, validation/ type approval and field trial, if any.

III.6.4. The extension of delivery period against the purchase order, if any, should be granted

subject to the condition that BBNL shall have the absolute right to revise the price(s) and also to levy penalty for the delayed supplies.

III.7. TRAINING III.7.1. The bidder shall provide training for installation and maintenance staff of the purchaser free

of cost where required.

III.7.2. The bidder shall specify in its bid the number of trainees, quantum of proposed training, pre-training qualifications required of the trainees and duration of the proposed training.


III.7.3. The bidder shall provide all training material and documents.

III.7.4. Conduct of training of the purchaser's personnel shall be at the suppliers' plant and/or on-

site in assembly start-up operation, maintenance and/or repair of the supplied goods. III.8. INCIDENTAL SERVICES III.8.1. The supplier may be required to provide any or all of the following services:

(a) Performance or supervision of on-site assembly and/or start-up of the supplied Goods;

(b) Furnishing of tools required for assembly and/or maintenance of supplied Goods;

(c) Performance of supervision or maintenance and/or repair of the supplied Goods, for a period of time agreed by the parties provided that this service shall not relieve the supplier of any warranty obligations under this contract.

III.9. SPARES III.9.1. The supplier shall be required to provide a list of the following material and notifications

pertaining to spare parts manufactured or distributed by the supplier of spares including cost and quantity considered for arriving at the price of spares in section. II, clause 9.

(a) Such spare parts as the purchaser may elect to purchase from the supplier provided

that such purchase shall not relieve the supplier of any warranty obligation under the contract.

(b) In the event of termination of production of the spare parts, the supplier shall:

i. give advance notification to the purchaser pending termination (not less than 2

years), in sufficient time to enable the purchaser to procure life time spare; and

ii. following such advance intimation of termination, furnish at no cost to the purchaser, the blue prints, drawings and specifications of spare parts, if and when requested.

III.9.2. Over a period of three years starting from the date of final acceptance, the supplier shall

supply, at its own cost, all necessary spares which have not been included in the offer as part of the requirement. These spares should be supplied within a maximum period of 30 days from the notification by the purchaser of its need.

III.10. WARRANTY III.10.1. The supplier shall warrant that the stores to be supplied shall be new and free from all

defects and faults in materials used, workmanship and manufacture and shall be of the

highest grade and consistent with the established and generally accepted standards for

materials of the type ordered and shall perform in full conformity with the specifications and

drawings. The supplier shall be responsible for any defect that may develop under the

conditions provided by the contract and under proper use, arising from faulty material,

design or workmanship such as corrosion of the equipment, inadequate quantity of material

to meet equipment requirements, inadequate contact protection, deficiencies in circuit

design and/or otherwise and shall remedy such defects at its own cost when called upon to

do so by the Purchaser who shall state in writing in what respect the stores are faulty. This

warranty shall survive inspection or payment for/ and acceptance of goods, but shall expire

(except in respect of complaints notified prior to such date) twelve months, or the period

specified in Section-IV-B, after the stores have been taken over under clause 5.5 above.

III.10.2. If it becomes necessary for the Supplier to replace or renew any defective portion(s) of the

equipment under this clause, the provisions of the clause 10.1 shall apply to the portion(s) of the equipment so replaced or renewed or until the end of the above mentioned period of


twelve months (or the period specified in Section-IV-B), whichever may be later. If any

defect is not remedied by the supplier within a reasonable time, the Purchaser may proceed

to get the defects remedied from other supplier etc., at the supplier's risk and expenses, but

without prejudice to any other rights which the purchaser may have against the supplier in

respect of such defects.

III.10.3. Replacement under warranty clause shall be made by the supplier free of all charges at site

including freight, insurance and other incidental charges. III.11. PAYMENT TERMS III.11.1. Payment as specified in Section-IV-B shall be made on receipt of goods by consignee. For

claiming this payment the following documents are to be submitted to the paying authority.

(a) Invoice clearly indicating break up details of composite price i.e. Basic, E.D., Sales

Tax, any other Duties and Taxes, Freight/Packing Charges, Service Tax etc.

(b) Acknowledged Delivery Challan

(c) Supplier certificate for dispatch

(d) Excise gate pass/ invoice or equivalent document viz. Custom invoice, if applicable

(e) Inspection certificate of QA (Payable copy)

(f) Consignee receipt

(g) Proof of payment of octroi/ entry tax etc., if any

(h) “If the supplier fails to furnish necessary supporting documents i.e. excise/ Customs invoices etc. in respect of the Duties/taxes which are Cenvatable, the amount pertaining to such Duties/Taxes will be deducted from the payment due to the firm.”

III.11.2. The balance payment shall be released as specified in Section-IV-B in case there are no

damage/shortages. In case there are shortages/damages, the purchaser shall intimate the supplier in writing, who will take necessary action to collect the material at his own cost and replace the same. The balance payment shall be released only after the cases are settled in accordance with the provision of the P.O.

[Hint: The actual payment conditions for new products or procurements having installation and AMC

services may be decided on case to case basis and incorporated in special conditions of contract]

III.11.3. Form C and also a certificate stating that the tendered item (stores) are meant for the use of

BBNL shall be provided by the purchaser on the request of the bidder as and when asked for. III.11.4. No payment will be made for goods rejected at the site on testing.

III.11.5. The bidder has to give the mandate for receiving payment costing Rs.5 lacs and above

electronically and the charges, if any, levied by bank has to be borne by the bidder/ contractor/supplier. The bidder company are required to give the following information for this purpose:-

(a) Beneficiary Bank Name:

(b) Beneficiary branch Name:

(c) IFSC code of beneficiary Branch

(d) Beneficiary account No.:


(e) Branch Serial No. (MICR No.): III.12. PRICES III.12.1. Prices charged by the supplier for goods delivered and services performed under the

contract shall not be higher than the prices quoted by the Supplier in its Bid except for variation caused by change in taxes/ duties as specified in Clause-12.2 mentioned below.

III.12.2. For changes in taxes/ duties during the scheduled delivery period, the unit price shall be

regulated as under:

(a) Prices will be fixed at the time of issue of purchase order as per taxes and statutory

duties applicable at that time

(b) In case of reduction of taxes and other statutory duties during the scheduled delivery period, purchaser shall take the benefit of decrease in these taxes/duties for the supplies made from the date of enactment of revised duties/taxes.

(c) In case of increase in duties/taxes during the scheduled delivery period, the purchaser

shall revise the prices as per new duties/taxes for the supplies, to be made during the remaining delivery period as per terms and conditions of the purchase order.

III.12.3. Any increase in taxes and other statutory duties/levies after the expiry of the delivery date

shall be to the supplier's account. However, benefit of any decrease in these taxes/duties shall be passed on to the Purchaser by the supplier.

III.13. CHANGES IN PURCHASE ORDERS III.13.1. The purchaser may, at any time, by a written order given to a supplier, make changes within

the general scope of the contract in any one or more of the following:

(a) drawings, designs or specifications, where Goods to be supplied under the contract

are to be specifically manufactured for the Purchaser;

(b) the method of transportation or packing;

(c) the place of delivery; or

(d) the services to be provided by the supplier. III.13.2. If any such change causes an increase or decrease in the cost of, or the time required for

the execution of the contract an equitable adjustment shall be made in the contract price or delivery schedule, or both, and the contract shall accordingly be amended. Any proposal by the supplier for adjustment under this clause must be made within thirty days from the date of the receipt of the change in order.

III.14. SUBCONTRACTS III.14.1. The Supplier shall notify the Purchaser in writing of all subcontracts awarded under this

contract if not already specified in its bid. Such notification, in its original bid or later shall not relieve the supplier from any liability or obligation under the Contract.

III.15. DELAYS IN THE SUPPLIER'S PERFORMANCE III.15.1. Delivery of the Goods and performance of the services shall be made by the Supplier in

accordance with the time schedule specified by the purchaser in its purchase order. In case

the supply is not completed in the stipulated delivery period, as indicated in the Purchase

Order, purchaser reserves the right either to short-close/cancel this purchase order and/or

recover liquidated damage charges. The cancellation/short-closing of the order shall be at

the risk and responsibility of the supplier and purchaser reserves the right to purchase

balance unsupplied item at the risk and cost of the defaulting vendors.


III.15.2. Delay by the Supplier in the performance of its delivery obligations shall render the Supplier

liable to any or all of the following sanctions:

(a) forfeiture of its performance security,

(b) imposition of liquidated damages, and/or

(c) short-closure of the contract in part or full and/ or termination of the contract for default. III.15.3. If at any time during the performance of the contract, the supplier encounters condition

impending timely delivery of the goods and performance of service, the supplier shall:

(a) Promptly notify to the Purchaser in writing the fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier's notice, the purchaser shall evaluate the situation and may at its discretion extend the period for performance of the contract (by not more than 20 weeks or as per provisions of clause 16.2, Section-III) as per provision given below :

(b) The vendor has to submit their request for extension along with the undertaking as

per clause 24 Section-III (Fall Clause) and a copy of QA inspection certificate at least

two weeks before the expiry of delivery period. The vendor shall also submit

unconditional acceptance of the conditions for delivery period extension i.e.

applicability of liquidated damages, prices to be provisional and to be regulated as per

clauses 12.3 and 24 of section-III and submission of additional BG, wherever

applicable. The decision regarding extension shall be communicated within two

weeks of the receipt of request and after receipt of the unconditional acceptance and

the undertaking mentioned above.

(c) In case extension is being granted beyond 20 weeks then the vendor shall submit

additional BG while seeking extension. For piecemeal items the amount of additional

BG shall be 5% of the value of balance quantity of items to be supplied for which

extension in delivery period has been sought. In case of infrastructure/turnkey

projects other than as stated above, 1% of the total project value shall be the value

for additional BG. The additional BG shall be valid for six months beyond extension

of. delivery period sought and shall be discharged after the full ordered quantity has

been supplied to the ultimate consignee within the last extended delivery period on

submission of inspection certificate from QA and consignee receipt without prejudice

to the other remedies available to the purchaser.

(d) If the vendor fails to deliver the full ordered quantity even during extended delivery period then the PO shall be short-closed and the Performance Bank Guarantee as well as additional BG shall be forfeited.

(e) Format of (i) letters conveying conditions of DP extension and (ii) DP extension letter

are in appendix. III.15.4. If the supplies are not completed in the extended delivery period, the purchase order shall

be short-closed and both the Performance securities shall be forfeited. III.16. LIQUIDATED DAMAGES III.16.1. The date of delivery of the stores stipulated in the acceptance of the tender should be

deemed to be the essence of the contract and delivery must be completed not later than the

dates specified therein. Extension will not be given except in exceptional circumstances.

Should, however, deliveries be made after expiry of the contracted delivery period, without

prior concurrence of the purchaser and be accepted by the consignee, such delivery will not

deprive the purchaser of its right to recover liquidated damage under clause 16.2 below.

However, when supply is made within 21 days of the contracted original delivery period, the

consignee may accept the stores and in such cases the provision of clause 16.2 will not


apply.

III.16.2. While granting extension of delivery period as per clause 15.3, the liquidated damages shall

be levied as follows:

(a) Should the supplier fails to deliver the store or any consignment thereof within the

period prescribed and agreed for delivery, the purchaser, without prejudice to other

remedies available to the purchaser shall be entitled to recover, as agreed liquidated

damages for breach of contract, a sum equivalent to 0.5% of the value of the delayed

supply and/or undelivered material/ supply for each week of delay or part thereof for a

period up to 10 (TEN) weeks, and thereafter at the rate of 0.7% of the value of the

delayed supply and/ or undelivered material/ supply for each week of delay or part

thereof for another TEN weeks of delay. (b) DP extension beyond 20 weeks would not be generally allowed. The extension

beyond 20 weeks may be decided in most exceptional circumstances on case to case basis, by the Functional Director concerned stating reasons and justifications for grant of extension of delivery period beyond 20 weeks.

(c) In the case of package supply/turnkey projects when the delayed portion of the supply

materially hampers installation and commissioning of the systems, LD charges shall be levied as above on the total value of the concerned package of the Purchase Order.

(d) Quantum of liquidated damages assessed and levied by the purchaser and decision

of the purchaser thereon shall be final and binding on the supplier, further the same

shall not be challenged by the supplier either before Arbitration tribunal or before the

court. The same shall stand specifically excluded from the purview of the arbitration

clause, as such shall not be referable to arbitration. However, when supply is made to

the ultimate consignee within 21 days of QA clearance in the extended delivery period

and the goods were dispatched within contracted original delivery period, the

consignee may accept the stores and in such cases the LD shall be levied up to the

date of dispatch after QA clearance only. (e) The total value of the liquidated damages as per above sub-clauses shall be limited to

a maximum of 12% (Twelve percent) i.e. LD shall be levied upto 20 weeks only as per provision at para (i).

III.16.3. In cases where the scheduled delivery period is distributed month-wise or is in installments,

the liquidated damages shall be imposed for delay in each scheduled month/ installment.

Liquidated damages shall be calculated separately for quantities to be supplied in every

month/ installment and the corresponding delay. If the supplier supplies full quantity before

the expiry of the scheduled delivery period of the last month/ installment but there is delay in

month-wise/ installment-wise supply, then also liquidated damages shall be levied on the

supplies against the earlier months/ installments that have been delayed. Twenty (20)

weeks for the purpose of additional BG and grant of DP extension shall be counted from the

last month/ installment.

III.16.4. Wherever Clause of grace period of 21 days exists in the Purchase Order as well as in the

Tender document against which the Purchase Order has been released, applicability of the grace period shall be subject to:

(a) The Store has been offered to ‘QA’ by the Supplier for Inspection/Testing within the

contracted original delivery period. (b) 'QA’ has cleared the equipment for dispatch within the contracted original delivery

period. (c) The Supplier has carried out dispatch/dispatched the equipment with in contracted


original delivery period. For claiming benefit of grace period, the supplier shall have to satisfy the Paying Authority by furnishing documents of dispatch confirming that it has actually dispatched the equipment within contracted original delivery period.

(d) The Store has been received by the ultimate consignee with in 21 days of the expiry

of contracted original delivery period.

(e) The grace period of 21 days shall be allowed only in those cases which fulfill all the conditions given in para (a) to (d) above. During grace period no LD charges shall be levied and supplier shall be paid at the same rates as applicable during the contracted original delivery period.

III.16.5. {Hint : 1. In case of turnkey projects, the additional BG and LD clauses related to delay in

Installation & commissioning activities, shall be fine-tuned to meet the requirements of the

project and shall be included in the special conditions (Section IV of the concerned bid document) after approval of the Management. In these cases, the tender approving authority as per delegation of financial powers shall be competent authority to decide

applicability of LD on the Installation and commissioning portion in case delay is on part of BBNL. However, for supply of equipment in such projects, the terms and conditions shall be

the same as mentioned in clauses 15.3 and 16.2 of Section III }. III.17. FORCE MAJEURE III.17.1. If, at any time, during the continuance of this contract, the performance in whole or in part by

either party of any obligation under this contract is prevented or delayed by reasons of any war

or hostility, acts of the public enemy, civil commotion, sabotage, fires, floods, explosions,

epidemics, quarantine restrictions, strikes, lockouts or act of God (hereinafter referred to as

events) provided notice of happenings of any such eventuality is given by either party to the

other within 21 days from the date of occurrence thereof, neither party shall by reason of such

event be entitled to terminate this contract nor shall either party have any claim for damages

against other in respect of such non-performance or delay in performance, and deliveries under

the contract shall be resumed as soon as practicable after such an event come to an end or

cease to exist, and the decision of the Purchaser as to whether the deliveries have been so

resumed or not shall be final and conclusive. Further that if the performance in whole or part of

any obligation under this contract is prevented or delayed by reasons of any such event for a

period exceeding 60 days, either party may, at its option, terminate the contract.

III.17.2. Provided, also that if the contract is terminated under this clause, the Purchaser shall be at liberty to take over from the Supplier at a price to be fixed by the purchaser, which shall be final, all unused, undamaged and acceptable materials, bought out components and stores in course of manufacture which may be in possession of the Supplier at the time of such termination or such portion thereof as the purchaser may deem fit, except such materials, bought out components and stores as the Supplier may with the concurrence of the purchaser elect to retain.

III.18. TERMINATION FOR DEFAULT III.18.1. The Purchaser may, without prejudice to any other remedy for breach of contract, by written

notice of default, sent to the supplier, terminate this contract in whole or in part

(a) if the supplier fails to deliver any or all of the goods within the time period(s) specified in

the contract, or any extension thereof granted by the purchaser pursuant to clause15;

(b) if the supplier fails to perform any other obligation(s) under the Contract; and

(c) if the supplier, in either of the above circumstances, does not remedy its failure within a period of 15 days (or such longer period as the purchaser may authorize in writing) after receipt of the default notice from the purchaser.


III.18.2. In the event the purchaser terminates the contract in whole or in part pursuant to para 18.1

the purchaser may procure, upon such terms and in such manner as it deems appropriate, goods similar to those undelivered and the supplier shall be liable to the Purchaser for any excess cost for such similar goods. However the supplier shall continue the performance of the contract to the extent not terminated.

III.19. TERMINATION FOR INSOLVENCY III.19.1. The Purchaser may at any time terminate the Contract by giving written notice to the Supplier,

without compensation to the supplier. If the supplier becomes bankrupt or otherwise insolvent as

declared by the competent court provided that such termination will not prejudice or affect any

right of action or remedy which has accrued or will accrue thereafter to the purchaser. III.20. ARBITRATION III.20.1. In the event of any question, dispute or difference arising under this agreement or in

connection there-with (except as to the matters, the decision to which is specifically

provided under this agreement), the same shall be referred to the sole arbitration of the

CMD, BBNL or in case his designation is changed or his office is abolished, then in such

cases to the sole arbitration of the officer for the time being entrusted (whether in addition to

his own duties or otherwise) with the functions of the CMD, BBNL or by whatever

designation such an officer may be called (hereinafter referred to as the said officer), and if

the CMD or the said officer is unable or unwilling to act as such, then to the sole arbitration

of some other person appointed by the CMD or the said officer. The agreement to appoint

an arbitrator will be in accordance with the Arbitration and Conciliation Act 1996. There will

be no objection to any such appointment on the ground that the arbitrator is a Government

Servant or that he has to deal with the matter to which the agreement relates or that in the

course of his duties as a Government Servant/ PSU employee he has expressed his views

on all or any of the matters in dispute. The award of the arbitrator shall be final and binding

on both the parties to the agreement. In the event of such an arbitrator to whom the matter

is originally referred, being transferred or vacating his office or being unable to act for any

reason whatsoever, the CMD, BBNL or the said officer shall appoint another person to act

as an arbitrator in accordance with terms of the agreement and the person so appointed

shall be entitled to proceed from the stage at which it was left out by his predecessors.

III.20.2. The arbitrator may from time to time with the consent of both the parties enlarge the time

frame for making and publishing the award. Subject to the aforesaid, Arbitration and Conciliation Act, 1996 and the rules made there under, any modification thereof for the time being in force shall be deemed to apply to the arbitration proceeding under this clause.

III.20.3. The venue of the arbitration proceeding shall be the office of the CMD, BBNL, New Delhi or

such other places as the arbitrator may decide. III.21. SET OFF III.21.1. Any sum of money due and payable to the supplier (including security deposit refundable to

him) under this contract may be appropriated by the purchaser or BBNL or any other

person(s) contracting through BBNL and set off the same against any claim of the

Purchaser or BBNL or such other person or person(s) for payment of a sum of money

arising out of this contract or under any other contract made by the supplier with the

Purchaser or BBNL or such other person(s) contracting through the BBNL. III.22. INTIMATION OF SUPPLY STATUS III.22.1. The bidders, who are given Purchase Orders, must give the details of the supplies made against

all the Purchase Orders every month on the first working day of the following month to BBNL Procurement Manual 2013 Page 42

MM and the concerned User Branches of BBNL.

III.23. DETAILS OF THE PRODUCT III.23.1. The bidder should furnish the name of its collaborator (if applicable), brand name, model

number and type of the products offered in this tender. The technical literatures of the products should also be submitted. No change in either technology or product shall be permitted after opening of bids.

III.24. FALL CLAUSE III.24.1. At any time during the contract (a) if it comes to the notice of purchaser regarding

reduction of price for the same or similar equipment/ service; and/ or (b) the prices received in a new tender for the same or similar equipment/ service are less than the prices chargeable under the contract. The prices would be determined as follows:

III.24.2. The prices once fixed will remain valid during the scheduled delivery period except for the

provisions in clause 12.1 of Section III.

III.24.3. The purchaser, for the extended delivery period, if any, will determine and intimate the new price, taking into account various related aspects such as quantity, geographical location

etc., and the date of its effect for the balance quantity/ service to the vendor. In case the

vendor does not accept the new price to be made applicable during the extended delivery

period and the date of its effect, the purchaser shall have the right to terminate the contract

without accepting any further supplies. This termination of the contract shall be at the risk

and responsibility of the supplier and the purchaser reserves the right to purchase the

balance unsupplied quantity/ service at the risk and cost of the defaulting vendor besides

considering the forfeiture of its performance security.

III.24.4. The vendor while applying for extension of time for delivery of equipment/services, if any, shall have to provide an undertaking as "We have not reduced the sale price, and/ or offered to sell the same or similar equipment/ service to any person/organization including Department of central/state Government or any central/state PSU at a price lower than the price chargeable under the contract for scheduled delivery period."

III.24.5. In case under taking as in Clause 24.4 is not applicable, the vendor will give the details of

prices, the name(s) of purchaser, quantity etc. to the purchaser, while applying extension of delivery period.

III.25. COURT JURISDICTION III.25.1. Any dispute arising out of the tender/bid document/ evaluation of bids/issue of APO shall be

subject to the jurisdiction of the competent court at the place from where the NIT/tender has been issued.

III.25.2. Where a contractor has not agreed to arbitration, the dispute/claims arising out of the

Contract/PO entered with him shall be subject to the jurisdiction of the competent Court at the place from where Contract/PO has been issued. Accordingly, a stipulation shall be made in the contract as under.

III.25.3. “This Contract/ PO is subject to jurisdiction of Court at ................ only”.

III.25.4. [Hint: Mandatory Licensing requirements with regards to security related concerns issued

by the Government of India from time-to-time shall be strictly followed and appropriate clauses shall be added in all bid documents.]

***** BBNL Procurement Manual 2013 Page 43

Model Amendment Letter Intimating Conditions for Extension of

Delivery Period

Registered Acknowledgement Due

Address of the purchaser -------------------------------- --------------------------------

To M/s ……………………………….. ……………………………………… Sub : This office contract no………….. dated …………. placed on you for supply of ……………… Ref : Your letter no……………………………… dated ……………….

You have failed to deliver the goods/ entire quantity of the goods/ execution/ installation/ commissioning of the entire project within the contract delivery period/ delivery period as agreed schedule or last extended up to ______________. In your above referred letter, you have asked for extension/ further extension of time for delivery/ execution/ installation/ commissioning. In view of the circumstances stated in your above referred letter, the time of delivery can be extended from _______ (original/ last delivery period) to ____________ (presently agreed delivery period) subject to your unconditional acceptance of the following terms and conditions: 1. That, liquidated damages shall be levied in accordance with agreed clause 16.2 Section III of

terms and conditions of the tender/ PO.

2. That, notwithstanding any stipulation in the contract for increase in price on any ground, no

such increase, whatsoever, which takes place after zzz shall be admissible on such of the said goods as are delivered after the said date as per clause 12 Section III.

3. That, the prices during this extended delivery period shall be provisional and shall be

governed as per agreed clauses 12 and 24 of Section III and shall be finalized in accordance with the current PO price or the current PO price with latest budget/ duty impact or the prices in the new tender (T.E. no. ………..) from the date of its opening, on whichever is lower basis.

4. An additional BG of Rs. _________in accordance with clause 15.3, Section III of the contract

with validity upto _______. 5. An undertaking as required vide clause 24, Section III.

Please intimate your unconditional acceptance of this letter alongwith the additional BG within ten days of the issue of this letter failing which the contract will be cancelled at your risk and expense without any further reference to you. This letter shall form part and parcel of the agreement/ contract/ APO/ PO and all other terms & conditions of the contract remain unaltered.

Yours faithfully,

(………………………) for and on behalf of………..

zzz Original delivery date or the last extended/ re-fixed delivery period (as the case may be) NB : The entries which are not applicable for the case under consideration are to be deleted. BBNL Procurement Manual 2013 Page 44

Model Amendment Letter for Extension of Delivery Period

Registered Acknowledgement Due

Address of the purchaser -------------------------------- --------------------------------

To M/s ……………………………….. ……………………………………… Sub : This office contract no………….. dated …………. placed on you for supply of ……………… Ref : 1. Your letter no……………………………… dated ………………. requesting DP extension

2. This office letter no. ……………… dated ……… intimating conditions for DP extension 3. Your letter no………………….. dated …………. accepting the conditions for DP extension

You have failed to deliver the goods/ entire quantity of the goods/ execution/ installation/ commissioning of

the entire project within the contract delivery period/ delivery period as agreed schedule or last extended up to ______________. In your above letter under reference (1), you have asked for extension/ further

extension of time for delivery/ execution/ installation/ commissioning. The terms and conditions for extension of delivery period were conveyed to you vide this office letter under reference (2). In view of the circumstances stated in your above referred letter, and upon your unconditional acceptance of the terms and conditions of this extension vide your letter under reference (3), the time of delivery is hereby extended from _______ (last delivery period) to ____________ (presently agreed delivery period) on the terms and conditions in letter under reference (2) above and agreed by you vide letter under reference (3) i.e.: (a) Liquidated damages shall be levied in accordance with agreed clause 16.2 Section III of terms

and conditions of the tender/ PO. (b) Notwithstanding any stipulation in the contract for increase in price on any ground, no such increase, whatsoever, which takes place after zzz shall be admissible on such of the said goods as are delivered after the said date as per clause 12 Section III.

(c) The prices during this extended delivery period shall be provisional and shall be governed as

per clauses 12 and 24 of Section III and shall be finalized in accordance with current PO price or the current PO price with latest budget/ duty impact or the prices in the new tender (T.E. no. ………..) from the date of its opening, on whichever is lower basis.

The letters under reference above and this letter shall form part and parcel of agreement/ contract/ APO/ PO and all other terms & conditions of the contract remain unaltered.

Yours faithfully,

(………………………) for and on behalf of………..

Copy to : ………………….. ………………….. ………………….. (All concerned) zzz Original delivery date or the last unconditionally re-fixed delivery date (as the case may be) NB : The entries which are not applicable for the case under consideration are to be deleted.


SECTION - IV.

SPECIAL INSTRUCTIONS TO BIDDERS AND SPECIAL CONDITIONS OF

CONTRACT 1. The special instructions to bidders and the special conditions of contract shall supplement the

'Instructions to Bidders' as contained in Section II &"General (Commercial) Conditions of Contract" as contained in Section III and wherever there is a conflict, the provisions herein shall prevail over those in Section II and Section III.

PART A - SPECIAL INSTRUCTIONS TO BIDDERS AND ELIGIBILITY

CONDITIONS IV.A.1 ELIGIBILITY CONDITIONS

Eligibility conditions for each tender shall be framed on case-to-case basis and to be approved by the tender approving authority. Broad guidelines provided in Chapter 2 may be referred. Sample eligibility conditions are given for reference as follows:

The eligible bidders should be Indian companies registered to manufacture the tendered item in India, having obtained clearance from Reserve Bank of India wherever applicable. In addition, they should have obtained valid Type Approval Certificate from Department of Telecom (Telecom Engineering Centre) for the tendered item against Technical Specifications given in the bid document and should have successfully executed Educational/Commercial orders issued by DOT/BBNL. The proof of manufacturing in India, Type Approval Certificate and successful execution of educational/commercial orders shall form part of the bid.

[Hint: The eligibility conditions for procurement of different types of equipment should be decided on case-to-case basis taking into account:

1. Type of equipment 2. First procurement or repetitive procurement 3. Available base of type approved vendors 4. Status of commercial/Educational order execution

The eligibility conditions need to be clearly defined as follows:

o That bidders having type approval of the specified GR are eligible to participate in the tender.

o The bidders having type approval of the old GR for the same equipment are also eligible to participate. Such

bidders have to obtain Type Approval Certificate or get their equipment validated before placement of

APO/PO as the case may be. However, the successful bidder will have to supply the equipment as per the

technical specifications given in the bid document.

o A special condition will be included in Section-IV of the bid document specifying the time frame for

obtaining TAC/completion of validation. This will be decided on case-to-case basis.

For the items, which are being procured for the first time where no vender or very few venders have obtained type approval so far, the eligibility conditions may be defined as follows:

• The bidder or its collaborator should have supplied 25% of the tendered quantity to any other telecom

service provider and a certificate given by the competent authority to be enclosed along with the bid.

• In addition, it shall have to get the offered equipment Type Approved/ Validated against the specified GR

in a time frame to be defined in the bid document.]


IV.A.2 Bid Security

(i) The bank guarantee for bid security or MSE certificate from Appropriate Authority for claiming exemption from submission of bank guarantee against bid security, as prescribed in clauses 12.1 & 12.3 of Section II of the bid document and the Type Approval Certificate and Proof of Execution of E.O / C.O as required under clause 2 of Section II shall be submitted along with the bids in a separate cover. The bank guarantee so submitted shall be as per the format given in Section VIII on prescribed judicial paper with stamps of proper value and should contain full address of the issuing branch of the bank with its telephone number and FAX number. This cover should be superscribed as “BID SECURITY & TYPE APPROVAL CERTIFICATE FOR TENDER No.--------- Issued on------------

(ii) In case where the document of bid security and type approval etc. are not submitted in the manner prescribed under clause 2 (i) above, cover containing the commercial, technical and financial offers SHALL NOT BE OPENED AND THE BID SHALL BE REJECTED AND RETURNED TO THE BIDDER UNOPENED.

IV.A.3. The Micro and Small Enterprises registered with Appropriate Authority for the tendered items

and desirous of claiming concessions available to such units inclusive of bid security should submit their latest MSE certificate duly certified by Appropriate Authority.

IV.A.4. (i) The Purchaser intends to limit the number of technically and commercially responsive

bidders to ( ) from the list of such bidders arranged in increasing order of their evaluated prices starting from the lowest for the purpose of ordering against this tender. The bidder with the lowest evaluated price will be considered for about ( ) % of the tendered quantity and the balance quantity will be ordered on the remaining selected bidders inversely proportional to their quoted prices. However, the purchaser reserves the right for the placement of order of entire tendered quantity on the bidder with the lowest evaluated price.

(ii) In the event of any of the eligible bidder(s) not agreeing to supply the equipment or not being considered by BBNL for ordering the equipment, inter-se ranking of the bidders below the aforesaid bidder(s) will be recast to fill up the vacated slot(s). This will be done to ensure that the number of bidders supplying the equipment remains same as earlier.

(iii) PPP Clause to be added if required

[Hint: See guidelines for distribution of quantity in Chapter 9]

[Hint: Additional clauses may be added on case-to-case basis. These clauses may be related to evaluation criteria, additional documents required to be furnished, single stage or two-stage bidding, etc. Chapter 3 may be referred for guidelines.]

PART B – SPECIAL (COMMERCIAL) CONDITIONS OF CONTRACT (SCC)

[Hint: The clauses mentioned below are for reference only. Exact clauses should be framed as per requirement on case-to-case basis. Chapter 3 may be referred for guidelines.]

IV.B.1. Quality Assurance and Testing:

(i) The supply will be accepted only after quality assurance tests are carried out by the Quality Assurance Wing of BBNL as per prescribed schedule and material passing the test successfully and after authenticated excise gate pass issued by Excise Authorities.


(ii) The QA units of BBNL while clearing the equipment/stores will strictly adhere to the

package discipline as described in Purchase Order. Supplies made in full, as per Purchase Order, of all the packages during delivery period only will be deemed to have been supplied within the scheduled delivery period.

[Hint: Generally equipment (indigenous or imported) upon completion of TAC/ Validation shall have to be supplied after successful testing by Quality Assurance Wing of BBNL. However, BBNL Board may relax this condition on case-to-case basis.]

IV.B.2. Spares:

[Hint: The clause regarding spares may be included considering the following aspects:

(i) The supplier shall be required to provide a list of spare parts recommended for maintenance for three years along with rates at card/ module level. The purchaser may elect to purchase the recommended spares from the supplier at any time including at the end of warranty/ AMC, provided that such purchase shall not relieve the supplier from any warranty/ AMC obligations under the contract.

(ii) The cost of spares shall be discounted @ 12% over warranty/ AMC period (if there is

a provision for AMC in the contract) to arrive at the final price of the equipment for the purpose of tender evaluation.

(iii) Over a period of three years starting from the date of final acceptance of the

equipment or after the procurement of spares, supplier shall supply at its own cost, spare parts needed which have not been included in the offer. These spares should be supplied within a maximum period of thirty days from the notification by the purchaser of its need, without demur.

(iv) In the event of termination of production of the equipment/ spare parts, the supplier

shall notify the purchaser at least two years in advance of the impending termination to enable the purchaser to procure life time spares. The supplier shall also provide at its own cost to the purchaser, the blue print drawings and specifications of spare parts if and when requested.

(v) Period warranty & AMC (if any) shall also be prescribed.]

IV.B.3. Repair of faulty equipment and setting up of Repair Facilities:

[Hint: The clause regarding repair of faulty equipment and setting up of Repair Facilities may be included considering the following aspects:

(i) The supplier shall establish adequate repair facilities for repair of faulty equipment in

India within a period six months from the date of purchase order. The number and location of repair facilities should be such as to meet the requirement of repairs and turnaround time provided in the special conditions in Section IV. The performance bank guarantee shall not be released until the purchaser is satisfied that sufficient repair facilities have been established in addition to the fulfillment of other conditions of the contract. The purchaser reserves the right to blacklist a supplier who does not meet the repair obligation as per the conditions of contract.

(ii) The supplier shall quote rates for repair of each card/ module in schedule VII as a

percentage of the cost of that module and also in value in rupees. Total cost of repair for each type of module shall be loaded for the purpose of evaluation.]


IV.B.4 Annual Maintenance Contract (AMC):

(i) AMC shall come into effect after completion of warranty period and shall remain valid for ____ years. Warranty of equipment/ Units/ terminals shall start from the date of acceptance by the consignee of the last batch of equipment/ Units/ terminals in the Circle.

(ii) Terms and conditions of AMC shall be applicable during Warranty period including

imposition of penalties except that no charges for services provided under Warranty/ extended warranty shall be payable. Amount for penalties will be deducted from the pending payments against supplies or if that amount is insufficient then by invoking the PBG available against supply or AMC or from the charges due for AMC.

(iii) It shall be mandatory for the bidders to undertake the Annual maintenance contract for

____ years to be signed at the time of acceptance of APO for entire quantity proposed to be ordered. The selected bidder has to submit a signed copy of the AMC agreement along with the A.P.O.

(iv) For this purpose the bidder shall quote all inclusive Comprehensive AMC charges for

each year. However, service tax shall be paid extra as applicable. AMC charges shall be included in evaluation of price bid, by applying a discounted rate of 12% per year to arrive at the NPV (Net Present Value). The quote for AMC should be as a % (percent) of equipment cost and it is mandatory to quote yearly charge in Rs. in a column in Section-VII of tender document. The concerned User cell should specify the minimum charge in percentage for AMC for evaluation purpose.

(v) The bidder shall establish at least one Nodal Repair Center in the country or each

region/circle of BBNL within a period of 4 months (from the date of placement of PO) or as defined in the bid document, where their equipment is allotted for supply to keep the turnaround time for repair of faulty terminals/units to minimum.

(vi) The supplier shall provide the list of Nodal Repair Center and designated Courier

service/ agency with their addresses/ Tel. No./ Fax. No./ E-Mail etc. within 4 months from date of placement of P. O.

(vii) The supplier (including designated courier service/ agency) shall accept all the faulty

equipment/terminals/units for repair or replacement within prescribed turnaround time.

(viii) The bidder shall submit a performance bank guarantee towards fulfillment of obligations under AMC, in each Circle equivalent to 2% of the cost of equipment as per P.O. or the first year AMC charge pertaining to that Circle whichever is higher, in a prescribed proforma. The PBG shall be submitted at least two months in advance of date of start of AMC. The PBG shall be valid for a period of six years to cover one year or as specified over and above the _____ years AMC period. The PBG shall be extendable for a further period as required if there is any delay in start of AMC for any reason. For the additional equipment, the amount of PBG shall be increased at the same rate as indicated above, within a time period of one month of the date of such equipment getting covered under AMC.

(ix) The Performance Bank Guarantee against the P.O. will be released only after

submission of PBG against AMC in each Circle and fulfillment of other obligations of AMC or P.O. which are pre-requisite for release of the PBG.

(x) For the services rendered during the half-year, the payment shall be made at the end

of each half year at circle office, normally within a period of 21 days from the date of submission of bills duly certified by the concerned unit.

(xi) In case the supplier fails to repair the faulty equipments/ terminal/ units and deliver the

repaired one in the concerned BBNL office within stipulated turnaround time of ____ days, it shall be liable to pay penalty at the rate as defined in the bid document Rs. ______ per equipment/ PCB/ Assembly/ Sub-assembly/Terminal/ unit per day/ week or part thereof for the entire period counted from the date of making over the faulty equipment/ Units by BBNL to suppliers/ designated courier to the actual date of delivery of repaired Units including Saturday, Sunday and holidays. Capping on


penalty will be 25% of the AMC value for the corresponding period or as decided on case-to-case basis of the AMC value for that period.

(xii) Any Unit neither returned during the turnaround time period nor declared as RNP

(Repair Not Possible) within 60 days of its handing over to the designated courier/agency/ center, an amount equivalent to 1.5 times the cost of equipment/unit shall be levied from the supplier. This cost will not be counted as penalty, for the purpose of 25% cap on penalty as mentioned in above para.

(xiii) Not more than 1% of the total equipment/ units sent in any ear (of AMC) for repair will

be declared as RNP (Repair Not Possible) by the supplier. BBNL shall reimburse upto a maximum of 1% of the cost of equipment sent for repair against replacement cost of equipment declared as RNP.

(xiv) The consumables should not be part of AMC except the large capacity batteries

supplied if any, with the BSCs/BTSs etc. in WLL tenders in future. However, if BBNL so desires, the supplier shall be bound to provide these items at the itemized price in their bids for initial currency period of AMC.

[Hint:-The aforesaid clauses are to be incorporated in Procurement Manual as a guiding factor for AMC and aimed to achieve smooth and proper working of the equipment during its predicted life span with practical workable approach without increasing the cost considerably. The terms and conditions may undergo change as per requirement of the procurement. The concerned User Cell of Corporate Office and relevant wings of field units of BBNL preparing tender conditions should also include the agreement for Comprehensive Annual Maintenance Contract detailing the post warranty and within warranty period maintenance obligations as well as scope of work. The riders mentioned in sub-clauses (v), (vi), (viii), (xii) and (xiii) respectively for 4 months, 4 months, six years, 60 days and 1% may undergo suitable change as justified with the approval of competent authority.]

Other clauses may be defined as per the need.

PART C – SPECIAL (TECHNICAL) CONDITIONS OF CONTRACT AND TECHNICAL SPECIFICATIONS

The following Technical Specifications which form part of the bid documents are annexed separately. Item Tech. Spec. Nos.

[Hint: Clauses for describing the technical requirements, model technical specifications may be added as per requirement.]

[Hint: After the issue of NIT, Specifications should not be changed.]

*****


SECTION - V.

SCHEDULE OF REQUIREMENTS (SOR)

S.NO.. GOODS/ SERVICES QUANTITY

Note: Bidder shall furnish the detailed Bill of Material (BOM) for each SOR item mentioned above.

The detailed Bill of Material should clearly mention all the components including quantities, constituting the SOR item. The priced Bill of Material should be submitted in the envelope containing the price bid and unpriced Bill of Material should be submitted in the envelope containing the techno-commercial part. There should not be any difference in the items and quantities in the priced and the unpriced BOMs.


SECTION - VI.

BID FORM

Date : ................. To …………………………………………. …………………………………………. …………………………………………. …………………………………………. <complete address of the purchaser> Ref: Your Tender Enquiry No. ……………….. dated …………. 1. Having examined the above mentioned tender enquiry document including amendment/

clarification/ addenda Nos...................... dated …………….. the receipt of which is hereby duly acknowledged, we, the undersigned, offer to supply and deliver .............................................. in conformity with the said drawings, conditions of contract and specifications for the sum shown in the schedule of prices attached herewith and made part of this Bid.

2. We undertake, if our Bid is accepted, to complete delivery of all the items and perform all the

services specified in the contract in accordance with the delivery schedule specified in the General Commercial Conditions, read with modification, if any, in Section - IV – “Special Conditions of Contract”,.

3. If our Bid is accepted, we will provide you with a performance guarantee of a Scheduled Bank

for a sum @ 5% of the contract value for the due performance of the contract.

4. We agree to abide by this Bid for a period of ------- days from the date fixed for Bid opening or for

subsequently extended period, if any, agreed to by us..This bid shall remain binding upon us upto the aforesaid period and may be accepted at any time before the expiration of that period.

5. Until a formal Purchase Order of Contract is prepared and executed, this Bid together with

your written acceptance thereof in your notification of award shall constitute a binding contract between us.

6. Bid submitted by us is properly sealed and prepared so as to prevent any subsequent

alteration and replacement. 7. We understand that you are not bound to accept the lowest or any bid, you may receive.

8. We understand that the Bid document so submitted is the true copy of BBNL tender

documents available on the BBNL website/ e-tendering portal. Any deviation will result in the rejection of the bid.

Dated this .............................. day of ........................ 20… Name and Signature ------------------------ In the capacity of ---------------------- Duly authorised to sign the bid for and on behalf of .............................................. witness ......................................... Address ...................................... Signature ………………………….

*** BBNL Procurement Manual 2013 Page 52

SECTION -

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SECTION - VIII.

BID SECURITY FORM

Whereas

.

.

.

.

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.

.

.

.

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.

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.

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. (hereinafter called "the Bidder") has submitted its bid dated............ for

the supply........................ of vide Tender No…………………… dated............ KNOW ALL MEN by these presents that WE ....................... of.................... having our registered office

at ................. (hereinaftercalled"the Bank") are bound unto Bharat Broadband Network Limited

(hereinafter called "the Purchaser") in the sum of Rs.................... for which payment will and truly to be made to the said Purchaser, the Bank binds itself, its successors and assigns by these present.

THE CONDITIONS of the obligation are :

1. If the Bidder withdraws or amends its bid or impairs or derogates from the bid in any respect

during the period of bid validity specified by the Bidder on the Bid form or extended

subsequently; or

2. If the Bidder, having been notified of the acceptance of its bid by the Purchaser during the period of bid validity

(a) fails or refuses to execute the Contract, if required; or

(b) fails or refuses to furnish the Performance Security within the specified time, in accordance with the instructions to Bidders.

We undertake to pay to the Purchaser up to the above amount upon receipt of its first written demand,

without the purchaser having to substantiate its demand, provided that in its demand, the purchaser

will note that the amount claimed by it is due to it owing to the occurrence of one or both of the two

conditions, specifying the occurred condition or conditions.

This guarantee will remain in force as specified in clauses 12 and 28.2 of section II of the Bid

Document upto and including THIRTY (30) days after the Period of bid validity and any demand in

respect thereof should reach the Bank not later than the specified date/dates.

Signature of the Bank Authority.

Name

Signed in Capacity of

Name & Signature of witness Full address of Branch

Address of witness Tel No. of Branch

Fax No. of Branch

***


SECTION - IX.

PERFORMANCE SECURITY GUARANTEE BOND

In consideration of the CMD, Bharat Broadband Network Limited (hereinafter called 'BBNL') having agreed

to exempt ___________________ (hereinafter called 'the said contractor(s)') from the demand under the

terms and conditions of an agreement/Advance Purchase Order No ________________ dated ____________ made between _____________________ and __________________ for the supply

of _______________________ (hereinafter called "the said agreement "), of security deposit for the due

fulfillment by the said contractor (s) of the terms and conditions contained in the said Agreement, on

production of the bank guarantee for _____________________________________we, (name of the bank)

_________________________ ( hereinafter refer to as "the bank") at the request of ___________________________________ (contractor(s)) do hereby undertake to pay to the BBNL

an amount not exceeding ___________________ against any loss or damage caused to or suffered

or would be caused to or suffered by BBNL by reason of any breach by the said Contractor(s) of any

of the terms or conditions contained in the said Agreement.

2. We (name of the bank) ____________________ do hereby undertake to pay the amounts

due and payable under this guarantee without any demure, merely on a demand from the BBNL by

reason of breach by the said contractor(s)' of any of the terms or conditions contained in the said

Agreement or by reason of the contractors(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 where the decision of BBNL in these counts shall be final and binding on the

bank. However, our liability under this guarantee shall be restricted to an amount not exceeding ___________________________________.

3. We undertake to pay to the BBNL any money so demanded notwithstanding any dispute or

disputes raised by the contractor(s)/supplier(s) 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 valid discharge of our liability for payment there under and the

contractor(s)/supplier(s) shall have no claim against us for making such payment.

4. We( name of the bank)_________________________ further agree that the guarantee herein

contained shall remain in full force and effect during the period that would be taken for the performance of

the said agreement and that it shall continue to be enforceable till all the dues of the BBNL under or by

virtue of the said Agreement have been fully paid and its claims satisfied or discharged or till ________________________(office/ Department) BBNL certifies that the terms and conditions of the

said Agreement have been fully or properly carried out by the said contractor(s) and accordingly

discharges this guarantee. Unless a demand or claim under this guarantee is made on us in writing on

or before the expiry of TWO/ TWO AND HALF/ THREE YEARS (as specified in P.O) from the date

hereof, we shall be discharged from all liabilities under this guarantee thereafter.

5. We (name of the bank)_________________________ further agree with the BBNL that the

BBNL 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(s) from time to time or to postpone for any time or from time to

time any of the powers exercisable by the BBNL against the said Contractor(s) 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 by reason of any such variation, or extension being granted to the said Contractor(s)

or for any forbearance, act or omission on the part of the BBNL or any indulgence by the BBNL to the

said Contractor(s) or by any such matter or thing whatsoever which under the law relating to sureties

would, but for this provision, have effect of so relieving us.


6. This guarantee will not be discharged due to the change in the constitution of the Bank or the Contractor(s)/ supplier(s).

7. We (name of the bank) ____________________ lastly undertake not to revoke this guarantee during its currency except with the previous consent of the BBNL in writing. Place: …………………………… Date: …………………….…….. (Signature of the Bank Officer)

Rubber stamp of the bank:

Authorized Power of Attorney Number: ……………………………

Name of the Bank officer: …………………………...……..

Designation: ……………………………………………...….

Complete Postal address of Bank: ………………………..

……………………………………………………………..…

Telephone Numbers ………………………………………..

Fax numbers…………………………………………………

***


SECTION - X.

LETTER OF AUTHORISATION FOR ATTENDING BID OPENING

( To be typed preferably on letterhead of the company ) To

Sr. Manager/ Manager( ) Bharat Broadband Network Limited, New Delhi - 110 001

Subject : Authorisation for attending bid opening on ________________________________(date) in

the Tender of _________________________________________________________.

I/ We Mr. /Ms. …………………………………… have submitted our bid for the tender no.

………………………………… in respect of

…………………………………………………………………………… (Item of work) which is due to open

on ………………… (date).

Following persons are hereby authorised to attend the bid opening for the tender mentioned

above on behalf of ______________________________________________ (Bidder) in order of

preference given below.

Order of Preference Name Specimen Signatures

I.

II.

Alternate Representative Signatures of bidder/ Officer authorized to sign the bid Documents on behalf of the bidder. Note : 1. Maximum of two representatives will be permitted to attend bid opening. In cases where it is

restricted to one, first preference will be allowed. Alternate representative will be

permitted when regular representatives are not able to attend.

2. Permission for entry to the hall where bids are opened, may be refused in case

authorization as prescribed above is not received.

***


CHAPTER - 5

5. BID SECURITY BOND OR EARNEST MONEY DEPOSIT (EMD)

5.1. Purpose 5.1.1. The Bid Security Bond is also known as Earnest Money Deposit (EMD) or Earnest Money Bank

Guarantee (EMBG).The purpose of Bid Security Bond is to get a commitment by the Bidder to honour its bid during the bid validity period.

5.2. Value 5.2.1. The value of Bid Security will be equal to 2% of the total estimated cost of the equipment/ stores

including services proposed to be procured from technically and commercially compliant L-1

bidder (V-1 bidder incase vendor rating is used) in the tender subject to a maximum of Rupees

Ten Crore.

5.3. Validity Period 5.3.1. The validity period of the Bid Security Bond should be 30 days beyond the Bid validity e.g. 150

+30 = 180 days, if the bid validity period is 150 days.

5.4. Extension of Validity Period 5.4.1. In case, where the Letter of Intent/ Advance Purchase Order cannot be placed within the

validity period of the bid, BBNL can request all bidders to extend the validity of their respective

bids and the Bid Security Bonds by a reasonable period. In such cases, extension of validity of

Bid Security Bond by 30 days beyond the extended validity date of bids should also be asked

for. While BBNL can make the request for extension, the bidder is free to either extend the

validity or refuse the request to extend the Validity.

5.5. Release of Bid Security Bond

5.5.1. Bid Security Bonds of all unsuccessful Bidders should be released on placement of Purchase

Order (PO) on the successful bidders. This should be done within one week of release of

Purchase Order(s).

5.5.2. In case of successful Bidders, the Bid Security Bond is released on receipt of their unconditional acceptance of Advance Purchase Order and furnishing the performance security.

5.5.3. Where BBNL requests the Bidder to extend the validity of the Bid beyond the stipulated period

given in the Bid documents, and the bidder refuses to extend the validity of its bid, the Bid Bond

of such Bidders is returned forthwith. In such cases, the bidder shall not be considered for

further evaluation or ordering.

5.6. Encashment of Bid Security Bonds

5.6.1. Bid Security Bond of a bidder shall be forfeited, if the bidder withdraws or amends its bid or

impairs or derogates from the bid in any respect during the period of bid validity specified by the

bidder on the Bid Form or extended subsequently.

5.6.2. Further, when BBNL places an Advance Purchase Order on the successful bidder on its quoted

price and the bidder refuses to accept it and/ or fails to furnish the required Performance

Security (PBG) within the specified period, BBNL shall encash its Bid Security Bond and the

bidder shall not be eligible to participate in the tender for the same item for one year from the

date of issue of APO.


5.6.3. The bidder will not approach the court against the decision of BBNL in this regard.

5.7. Acceptable Forms of Bid Security

5.7.1. The Bid Security should be in the form of a Bank Guarantee issued by a scheduled bank in

favour of BBNL. Bid security in the form of Account Payee Demand Draft or Banker’s Cheque,

safeguarding the purchaser’s interest in all respects, shall also be acceptable. However, no

interest shall be payable on this account.

5.8. Format of Bid Security Bond (EMBG)

5.8.1. A model format of Bank Guarantee for obtaining bid security bond is provided at Section-VIII of

Chapter 4 (Standard Tender Enquiry Document).

5.9. Verification of the Bank Guarantees

5.9.1. Bank Guarantees submitted by the bidders as bid security bond must be immediately verified

from the issuing Bank before acceptance

5.10. Bid Security Bond Register 5.10.1. A record of all Bid Security Bonds (EMD/ EMBG) should be kept in Bid Security Bond Register

in standard format given below. The register should be scrutinized monthly to ensure currency

of validity of Bids, extensions asked and acceded by Bidders, Bid encashed, Bid refunded etc.

Name Bid Amount Name Date

of the Bond/ of Bid of the

Bidder EMBG Bond Banker

Op

en

ing

up

toV

alid

foraskedExtension

Ex

ten

ded

Bidderthet

oReturned

Resortedw

hereEncas

hment

Number

***


CHAPTER - 6

6. OPENING OF BIDS

6.1. Opening of bids

6.1.1. The guidelines for conducting the opening of commercial bids and the various steps to be taken

by the tendering authority are given in this chapter. The bid opening is an important occasion

when all the bidders, who have participated in the tender, assemble, their bids opened formally

in their presence and certain information e.g. price are read out in this open session. Proper bid

opening procedure ensures an impartial and fair approach to all bidders so that complaints on

this account do not arise. The various steps to ensure these are now described.

6.2. Formation of Bid opening Team

6.2.1. Since bid opening is an important responsibility, it is necessary that a bid opening team be

formed formally.

6.2.2. As BBNL is a lean organization and there are very few levels of officers, so the Bid Opening

teams would normally comprise of Sr. Manager/ Manager level officers. However, for some

large value tenders, BBNL Board may decide to have the bid opening committee chaired by

CGM/ Sr.GM/ GM level officer.

6.2.3. Proposal for formation of bid opening team would be approved by the Sr. Manager/ Manager in

charge of the tendering, well in advance of the bid opening. Any change in the constitution of

the Committee would need the approval of CGM/ Sr.GM/ GM(MM). The officer nominated for

the bid opening is normally different from the officer who has to process the procurement case.

6.3. Preparations By the Bid Opening Team

6.3.1. The Bid Opening Team should equip itself adequately in advance, to enable it to carry out its

function efficiently during bid opening. These advance preparation would comprise of the

following :

a) Preparing Attendance Register for recording attendance of Bidders.

b) Preparing list of bidders who have purchased the bid documents.

c) Providing adequate number of mazdoors for shifting the documents from the point of acceptance to the bid opening venue.

d) Ensuring security at the bid opening venue.

e) Making adequate arrangements for issue of passes to enable smooth entry of the

bidders to the bid opening venue.

f) Ensuring provision of public address system to enable the bidders to hear information being read out.

g) Making suitable sealing arrangements

h) Making suitable arrangement for receipt, recording and stocking of the documents.

i) Preparing formats in advance for recording information to be read out at the time of

opening of Bids and preparing its minutes.

j) Preparing direction pointers, notice etc. for display at prominent location to guide bidders to Bid Opening venue.


6.4. Venue

6.4.1. The Bid Opening would generally be conducted in a hall, which can accommodate comfortably,

BBNL officers forming the Bid opening Team as well as bidders, who participate in the tender.

The venue should preferably have an ante-room where the bids can be received from the

bidders and certain formalities carried out before the bidders are formally allowed entry into the

bid opening hall.

6.5. Essential Requirements to enable a Bidder to Participate in Bid Opening

6.5.1. The participation of bidders in bid opening would be restricted to those Bidder, who fulfill all the

following conditions:

a) Bidders, who have purchased the Bid documents from the source authorized by BBNL along with proof of such purchase.

b) Representative of Bidders, who have been authorized in writing by theirs principals to

participate in the bid opening and possess such letters of authorization in original.

c) Bidders, who are submitting/have submitted their Bids, as required by the bid documents.

6.5.2. Those, who do not meet the above conditions would be deemed to be unauthorized and would

not be allowed to enter the Bid Opening Venue and participate in the bid opening.

6.6. Bid Opening Process 6.6.1. The Bid opening process should start at the time/date given in the NIT. The bidder would be

asked to enter the ante room first, produce their letters of authorization to enable them to

participate in the bid opening and provide proof of having purchased the bid document from the

official sources to enable their bids to be accepted. After ensuring these, the bid would be

accepted. Suitable entries made in the Bid Receipt Register and the Attendance Register along

with the signature of the authorized participating bidders. Passes would then be provided to

those bidders, who are entitled to participate in the bid opening, to enable them to enter into the

bid opening venue.

6.6.2. For the bidders who submit their bids earlier to the date of bid opening, bids having letter of

authorization for submission of the bids and the bids themselves being submitted as required by the

bid documents, would be accepted by the Sr. Manager/ Manager of Tendering section and a receipt

to this effect issued by him to the bidder. In case such bidders wish to participate in the Bid Opening,

the production of this receipt along with the authorization for the participation in the bid would enable

the Bid Opening Officer to issue a pass to the Bidders to enable him to participate. In such cases, it

is the responsibility of the Bid Opening Officer to ensure that such bids are available, suitably

numbered, at the Bid Opening Venue at the time of Bid Opening. Any bids submitted after the due

time as per NIT would be returned unopened by the Bid Opening Officer.

6.7. Information to be read out in Bid Opening 6.7.1. The following information should be read out in the bid opening.

a) Name of the Bidder

b) Name of the item

c) Quantities/prices quoted in the bid

d) Discount, if offered

e) Taxes and levies 6.7.2. The Bid Opening Official should politely and firmly turn down queries of any other nature from any


bidder. No argument should be entertained on this account by the Bid Opening Officer.

6.7.3. Actual process of Opening of Bids should start only after the process of acceptance of Bids has

ended and all the accepted bids shifted to the Bid Opening Hall under supervision and responsibility

of Bid Opening Officer. Each and every Bid should be numerically and serially numbered, entered in

the Bid Opening Register, super scribed on the Bid and this entry encircled in red and initialed by the

Bid Opening Officer. The bids should be numbered in the sequence of receipt of bids. Entry of the

Bidders to the bids opening venue would strictly be regulated by passes and would be the

responsibility of the Bids opening officer. Entry of unauthorized person to Bid Opening Venue is

prohibited. The number of representatives per bidder should not ordinarily be more than two and

should be well within the seating capacity of the hall. Where the response to the tender is very

extensive, the Bid opening Officer may restrict entry to the venue to only one representative per

bidder. The decision of the Bid Opening Officer would be final.

6.7.4. At the start of the Bid Opening and prior to opening the first bid, the Bid Opening officer should clearly state the information which will be read out by him and should firmly state that no other

information would be read out by him or queries entertained by him.

6.7.5. Bids should be opened in the numerical sequence. The Bid Opening Officer should display the

intactness of the seal of the bid being opened, prior to opening it, to all the participants, record this

and initial this entry and should thereafter open the Bid. He should check up and ensure that the

number of copies and the mode of submission of the bid are as per the Bid Documents. Bids not

confirming to this should be rejected then and there and recorded and initialed, giving reasons for

such rejection. After opening the Bids, he should read out the information as given in para6.7.1, from

the original copy of the bid, record the information read ought in the appropriate format, encircle the

entries in the Bid in red ink and initial these in the Bid before proceeding to the next item to be read

out. The Bid should be sealed thereafter and initialed by the Bid Opening Officer.

6.7.6. The bids should be rejected at opening stage itself if bid security is not submitted as per clause 12.1 & 12.3 of Section-II of the Bid Document or bid validity is less than the time prescribed in clause 13.1, Section-II of the Bid Document.

6.7.7. Before outright rejection of a bid by Bid-opening team for some non-compliance, instructions

contained in clauses 31.2 to 31.5 of Section-II of the Bid Document should be kept in view by the Bid-opening team.

6.8. Minutes of the Bid Opening

6.8.1. In all cases, it should be ensured that the bid opening is completed on the same calendar day.

The bid opening official would be responsible for preparation of the minutes on the same day of

the bid opening or maximum the next day to the bid opening, in case the bid opening drags on

well beyond the closing hours of the office. In case the minutes are issued the next day, reason

should be recorded by the Bid Opening Officer for examination and acceptance by his superior

officer.

6.8.2. The bid opening minutes should comprise of the following :

a) List of participants who attended the bid opening.

b) Report on the bid opening duly prepared by the bid opening official and signed by him along with other members of the bid opening team certifying that only those bidders who were eligible to participate, were allowed to participate.

c) Information regarding item read out.

d) Submission of Bid documents, bidder-wise were as per Bid conditions to be indicated.

e) Statement that all steps taken to preserve the sanctity of the Bids.


f) Certificate regarding proper storage of Bids, after the Bid opening, in secured area.

6.9. Submission of Bid Opening Minutes

6.9.1. The Bid Opening officer should submit the minutes of the Bid Opening, duly signed by all

members of the Bid Opening Team to the Sr. Manager/ Manager of tendering section for

information, record and follow up action.

6.10. Making Over of Bids

6.10.1. The Bid Opening officer should make over the complete set of the bids along with the minutes

of the bid opening and other documents after the opening of the bids to all the members of the

Committee for Evaluation of Tender (CET).

***


CHAPTER - 7

7. FORMATION OF COMMITTEE FOR EVALUTION OF TENDER/ EOI (CET)

7.1. Formation of Committees for Evaluation of Tender 7.1.1. Tenders are evaluated by a Committee called Committee for Evaluation of Tender. Its formation

and constitution is covered in this chapter. The Committee for Evaluation of Tender (CET) is

constituted for the evaluation of each and every tender. This duly constituted CET evaluates the

tender as per the terms and conditions and other clauses stipulated in the tender document.

The Committee submits its recommendations in the form of a report. This report is thereafter

examined by the procurement branch of the BBNL. The proposals emerging out of the

recommendations of the Committee for Evaluation of Tender are submitted to the competent

authority for approval.

7.1.2. Each tender is evaluated by a Committee for Evaluation of Tender set up for this purpose. The

formation of the Committee is proposed by the MM branch and approved by the concerned

Director of BBNL Board. In case of tenders issued by field units, the CET would be approved by

the tender approving authority. Formation of the CET should be done well in advance of the

opening of the Bids.

7.2. Constitution of CET

7.2.1. A Committee for Evaluation of Tender basically comprises of three members representing the

Technical, Commercial and Finance Wings, so that bids could be evaluated technically,

commercially and financially. In addition, when the item is likely to have impact on the quality of

service, a member from the Operations Branch is inducted.

7.2.2. The Technical Member would be from the concerned User Wing and who would be generally the

chairman/ convenor and who would have the prime responsibility for preparation of the report.

7.2.3. The commercial member would be from the MM Cell.

7.2.4. The Finance member would be from ‘Finance Cell’

Technical User (Technical/ Planning/ Chairman/ Operations/ Marketing/ Member-cum-Convenor Admin/ Service, etc) cell

Commercial MM Cell Member

Finance Finance Cell Member

7.2.5. In addition depending upon the nature of the tender, officer(s) from Operation Branch/ other

related branches could also form part of the Committee for Evaluation of Tender.

7.2.6. Experts from other organizations, technical institutes, DoT, etc. may be included as members of

CET, if required, by recording reasons and with the specific approval of the Executive

Committee of BBNL Board.

7.3. Level of Committee for Evaluation of Tender

7.3.1. The level of the Committee for Evaluation of Tender depends upon the value of the Tender. The

levels for different value are given below :


Value of the Tender Members

Technical Commercial Finance

Upto Rs 25 Crores CGM/ Sr.GM/ Sr. Manager/ Sr. Manager/ GM Manager Manager

> Rs 25 Crores CGM/ Sr.GM/ CGM/ Sr.GM/ CGM/ Sr.GM/ GM GM GM

7.3.2. Executive Committee of BBNL may change the level of officers in any Committee for Evaluation

of Tenders as per requirement.

7.4. Working Groups 7.4.1. For the Purpose of evaluating complex telecommunication system or those costing more than 25

Crores, it may be necessary to provide the main Committee for Evaluation of Tender with the

assistance of the Technical Working Group, Commercial and Finance Working Groups. Such

Tenders are high value Tenders, where the Evaluation Committee level would be at GM and above.

The Working Groups would be at Sr. Manager/ Manager level. The setting up of such Groups would

require approval of the concerned Director of BBNL Board. However, the necessity of forming such

Groups should be decided by the Committee for Evaluation of Tender.

***


CHAPTER - 8

8. GUIDELINES TO COMMITTEE FOR EVALUATION OF TENDER/ EOI (CET)

8.1. Introduction 8.1.1. The Guidelines provide broad procedures to enable the evaluation process. Correct evaluation

decision will continue to depend upon the experience and good judgment of those who are responsible for evaluation.

8.1.2. The following document should be handed over to the CET members by MM Cell :

a) All bids accepted at the time of bid opening.

b) Bid document along with technical specification(s).

c) Guidelines for CET.

d) Minutes of the bid opening, if any. 8.1.3. The above document should be received by CET members personally.

8.1.4. Wherever there is any variation between the Technical Compliance Statement and the

Drawings/ Literature attached in support of or merely with Technical Compliance Statement, the

bidders should be asked to clarify/confirm specifically the technical compliance. In cases where

offered product is under-provided the CET should load the quoted price appropriately so as to

bring it to the desired level of technical compliance.

8.1.5. Determination of the bid's responsiveness is to be based on the contents of the bid itself without recourse to extrinsic evidence. Queries to or from bidders should generally be avoided.

8.1.6. Any document which has an impact on price of the bidders and which is submitted by the bidder after opening of the tenders should not be considered and should be ignored.

8.1.7. In order to have maximum participation, CET may seek clarifications from the bidders and the

response furnished by the bidders may be considered for the purpose of evaluation provided that

these clarifications do not change the product quoted by the bidder and do not have impact on the

eligibility or price of the bidder. Conditions mentioned in para 8.1.5 and 8.1.6 must be kept in view

while seeking clarifications. CET would have full powers to seek clarifications from the bidders.

However, such clarifications should be routed by the CET through MM Cell only and CET will not seek and/ or accept any clarification directly from the bidders.

8.1.8. Only responsive bids should be evaluated in detail. A responsive bid is a bid which satisfies following conditions of the bid documents :

a) It meets all the major technical clauses.

b) It meets commercial clauses.

c) The offer is accompanied by a bid security deposit on the prescribed proforma as indicated in the bid document and valid for 30 days beyond the validity of the bid.

8.1.9. The CET should hold a preliminary meeting within three days of handing over of the tender

Documents. The activities as per 8.2 and 8.3 below should commence immediately. The

convenor of the CET may coordinate to ensure that the statements relating to 8.2 and 8.3 are

handed over to the Finance representative so that finance vetting can start.

8.1.10. In order to help the Committee for Evaluation of Tender to formulate its recommendations within a


reasonable time frame the following allocation of responsibilities for different actions are indicated herein.

8.2. Technical Evaluation

8.2.1. The technical evaluation and preparation of comparative statement of value of bids is to be

carried out by the technical branch representative(s) on the CET. The technical comparative

assessment of the material list is required to be done along with the corresponding prices to be

taken for evaluation.

8.2.2. Vetting of such comparative list will be done by the Finance representative on CET.

8.3. Commercial Evaluation

8.3.1. The commercial evaluation is to be carried out by the MM Cell representative in CET and vetted

by the Finance representative.

8.3.2. Vetting of the comparative statements of bids and commercial evaluation statement is to be done by the Finance representative on the CET.

8.4. Framing the CET Recommendations 8.4.1. Once finally vetted statements become available (within pre-determined time frame), CET may

finalize its recommendations within further three days.

8.4.2. In case the committee has listed out major technical and commercial conditions as evaluation criteria, the same should be clearly indicated in the report.

8.4.3. The CET should clearly spell out its recommendations in its report about technically acceptable

bids, listed in an order starting from the lowest technically acceptable bid(L-1) upwards or as per

vendor rating starting from V-1. The report should contain complete technical, commercial and

financial appraisal, the logic leading to the recommendations themselves and reason for

rejecting bids lower than the lowest technically acceptable bids.

8.5. Reasonableness of Prices

8.5.1. After consideration of all the above aspects the CET shall determine the ordering price of the

equipment and take into consideration the reasonableness of this price.

8.5.2. The procurement is to be done on reasonable rates. The reasonableness of the rates obtained

in the tenders shall be assessed by comparing with the rates of previous procurement and also

current market trend for the same.

8.5.3. In order to have consistency and transparency while evaluating the tender price, the CET in its report should record the reasons for accepting or rejecting previous tender prices for similar items.

8.6. Negotiations with L1 bidder

8.6.1. As post tender negotiations could often be a source of corruption, it is directed that there should

be no post-lender negotiations with L-1, except in certain exceptional situations. Such

exceptional situations would include, procurement of proprietary items with limited sources of

supply and items where there is suspicion of a cartel formation. The justification and details of

such negotiations should be duly recorded and documented without any loss of time.

8.6.2. In cases where a decision is taken to go for re-tendering due to the unreasonableness of the

quoted rates, but the requirements are urgent and a re-tender for the entire requirement would

delay the availability of the item, thus jeopardizing the essential operations, maintenance and BBNL Procurement Manual 2013 Page 69

safety, negotiations would be permitted with L-1 bidder(s) for the supply of a bare minimum

quantity. The balance quantity should, however, be procured expeditiously through a re-tender, following the normal tendering process.

8.6.3. Counter-offers to L-1 in order to arrive at an acceptable price, shall amount to negotiations.

However, any counter-offer thereafter L-2, L-3 etc. (at the rates accepted by L-1) in case of

splitting of quantities, as pre-disclosed in the tender, shall not be deemed to be a negotiation.

8.6.4. It is reiterated that in case L-1 backs-out, there should be a re-tender.

8.7. Distribution of the tendered quantities amongst the various suppliers:-

8.7.1. The tender shall be evaluated for the quantities indicated in the schedule of requirements. In

normal purchase procedure, the orders will go in favour of the lowest acceptable bidder for the

full quantity. Apportioning the quantities may arise due to certain limitations or considerations.

As most of the items procured by BBNL are specialized products it becomes necessary to

sustain multiple vendors/suppliers through distribution of quantities.

8.7.2. The total quantity of the order should be distributed amongst different bidders who meet the technical

and commercial specifications when such distribution is in the long term interest of BBNL. It is

desirable that BBNL sustains multiple vendors through distribution of order to promote competition as

in many cases BBNL may be the sole user of such equipment/materials/ services.

8.7.3. The quantity to be allocated to L-1 and number of suppliers on whom orders shall be placed

would be specified in the tender document. The CET thus should act as per these guidelines for

distribution of the quantities amongst the various eligible suppliers.

8.7.4. In case no mention is made in the documents then, it should be in the inverse ratio of their price

quotation. This will ensure that there is incentive for the bidders to quote their lowest price from

tender to tender. While deciding the quantities technical feasibility of distribution and the

capability of each of the supplier has to be kept in view.

8.7.5. All the bidders should be offered uniform price for supply.

8.8. Miscellaneous Guidelines

8.8.1. The recommendations of the Committee for Evaluation of Tender are essentially an internal

document. Final decisions are taken by the competent authority on the basis of CET

recommendation. The confidentiality of the CET document from outsider is, therefore, to be

maintained. No information to substance, examination, clarification or evaluation of bids and

recommendations should be communicated to persons other than those officially concerned.

8.8.2. All the pages and enclosures of the CET report should be numbered consecutively and signed by all CET members.

8.8.3. The CET recommendations in duplicate should be received in MM Cell within 4 weeks of

handing over the documents to the CET members. The responsibility for ensuring this vests

with Chairman/ Convenor of the CET.

8.8.4. If CET needs additional time to complete the work, permission of extension may be obtained

from the concerned Director, or, in case of field units, by the tender approving authority, by the

Chairman/ Convenor of the CET specifically indicating the reason for the same. Permission of

extension, if granted, may be intimated to MM Cell for the purpose of record and taking further

suitable action.

8.8.5. The meetings of Committee for Evaluation of Tender should be fixed with prior consultation with


its members. They should be contacted on telephone as well. If any of the members appointed

to the committee for tender evaluation fails to attend the meetings for more than one occasion

consecutively the Chairman/ Convenor of CET should bring it to the notice of concerned

Director or the tender approving authority.

8.8.6. THE TENDER EVALUATION REPORT SHOULD CLEARLY INDICATE DEVIATIONS

RECOMMENDED VIS-A-VIS TENDER CONDITIONS ALONGWITH REASONS FOR SUCH

DEVIATIONS. WHEN THERE ARE NO DEVIATIONS FROM TENDER CONDITIONS, A

DECLARATION TO THIS EFFECT SHOULD BE INCLUDED IN THE REPORT OF THE

RECOMMENDATIONS OF TENDER EVALUATION COMMITTEE.

***

[Hint: Normally package discipline will be followed for evaluation of the bids.]


CHAPTER - 9

9. ACCEPTANCE OF EVALUATION REPORTS AND FRAMING OF PURCHASE

PROPOSALS

9.1. Purchase Proposal

9.1.1. The Chairman/ Convenor of the Committee for Evaluation of Tender should formally submit the

report of the committee to the MM Branch.

9.1.2. Within 7 days of the receipt of Report, MM Branch should put up the purchase proposal for according administrative approval along with a self-contained note comprising of the following :

a) Brief background

b) Salient features of the tender giving description of the equipment, quantities and

composition of the CET, dates of NIT, Bid Opening, Receipt of evaluation committee Report.

c) Summary of the recommendations of the CET report.

d) Confirmation regarding validity of the bids.

e) Comments of MM Cell on the recommendations of the CET.

f) Deviations/ short-comings etc, if any, mentioned by the CET

g) Formal purchase proposal giving the justification, ordering quantities bidder-wise, unit

rates, total rates, discount if any, counter-offer if proposed, financial implication of the

proposal, advances, if payable, Bank Guarantee proposed, consignee & paying

authority. The purchase proposals should be based on the quantities, distribution and

price as given in the Committee for Evaluation of Tender Report and incorporating the

comments of MM Cell. 9.1.3. The proposal would be sent to the competent authority(s).

9.1.4. Negotiations should not be allowed to be misused as a tool for bargaining with L-1 with dubious

intensions or lead to delays in decision-making. Convincing reasons must be recorded by the

authority recommending negotiations.

9.1.5. Competent authority should exercise due diligence while accepting a tender or ordering negotiations

or calling for a re-tendering and a definite timeframe should be indicated so that the time taken for

according requisite approvals for the entire process of award of tenders does not exceed one month

from the date of submission of recommendations. In cases where the proposal is to be approved at

higher level, a maximum of 15 days should be assigned for clearance at each level. In no case

should the overall timeframes exceed the validity period of the tender and it should be

ensured that tenders are invariably finalized within their validity period.

9.2. Distribution of Quantities amongst successful bidders 9.2.1. Distribution of quantities for ordering to the selected bidders of a tender should be as follows:

Number of Bidders on Distribution of Quantity

whom the order is

proposed to be placed

1 L – 1 should be given 100%


2 L – 1 should be given 70%

L – 2 should be given 30%

3 L – 1 should be given 50%.

Remaining quantities to other selected Bidders in INVERSE RATIO of their Evaluated price or in direct proportion to VR.

4 L – 1 should be given 40%.


5 to 9 L – 1 should be given 30%.


10 and above L – 1 should be given 20%.


9.3. Check-List for Requisition of Material before placing Purchase Orders

9.3.1. While the Purchase Proposal is under approval, MM Cell should request the user section to

furnish the details required for incorporating in the APOs/ POs. Following information is to be given by the user section before placement of Purchase Orders:

S.No. Item Status (Y/N)

1 Sanction particulars of P/E with date of Sanction

2 Head of Account

3 Particulars of Paying Authority

4 Full details of Consignee/ultimate Consignee with complete address

and Pin Code

5 Detailed Material List clearly indicating the Quantity

6 Certificate regarding availability of Funds

7 Circle-wise/ SSA-wise distribution of quantities

This issues with the Approval of CGM/ Sr.GM/ GM of User Section.

(signature) Sr.

Manager/ Manager User Section


CHAPTER - 10

10. PERFORMANCE BANK GUARANTEE

10.1. Purpose

10.1.1. Performance Bank Guarantees are obtained from suppliers/ contractors to ensure performance

of the contract as specified in the purchase order including warranty for satisfactory working of

the equipment and stores during the warranty period. This also serves to cover the risk of the

BBNL during the performance of the contract.

10.2. When Required

10.2.1. After a tender has been evaluated and the purchase proposal of BBNL to place orders on the

bidders has been approved by the competent authority, a formal Letter of Intent (Advance

Purchase Order) is placed on the supplier. The supplier is required to furnish bank guarantee

for an amount equal to 5% of the value of advance purchase order on a Nationalized/

Scheduled Bank in a standard format within two weeks from the date of issue of letter of intent.

The acceptance of the letter of intent by the supplier as well as furnishing of the Bank

Guarantee would result in the issue of formal purchase orders.

10.3. Validity of Performance Security

10.3.1. The validity period of Performance Security in the form of Performance Bank Guarantee should

be in proportion to the delivery period as per the details given below :

Sl.No. Delivery Period Validity Period of Performance BG

1. Upto 6 months 2 Years

2. 6 months to 1 year 2 years and 6 months

3. More than 1 year 3 years

10.3.2. However, in no case the validity period of the PBG should be less than the period by which all

the contractual obligations of the bidders in the respective tenders are likely to be fulfilled.

10.3.3. BBNL may ask for extension(s) of the validity period till the time all contractual obligations have been satisfactorily performed by the supplier.

10.4. Action to be taken on Receipt of Bank Guarantee from the Supplier

10.4.1. Examination for Accuracy : The first action to be taken on receipt of bank guarantee from the

supplier is to examine the genuineness of the bank guarantee in the light of standard format prescribed as well as a formal check with the bank.

10.4.2. Acceptance of Bank Guarantee : Acceptance of Bank Guarantee is issued to the concerned

bank after its genuineness has been examined and entries made in the Register. The

acceptance letter is issued to the concerned bank with a copy to the supplier.

10.4.3. Entry in Bank Guarantee Register : After the genuineness has been established, it is entered in the

Bank Guarantee Review Register with reference to the amount and the date of validity supplier-wise.

The format of the register is enclosed. The entry of the bank Guarantee in the Register is done in the

space allocated to the month and year on which it expires and not the month and year of the issue of

the Bank Guarantee i.e. entries in the register indicate expiry date of the bank guarantee, thereby

enabling them to be monitored in case renewals are required.


10.4.4. Periodic Monitoring of Register : A periodic monitoring of the status of the validity of the bank

guarantee vis-à-vis the performance of the supplier against the contract is necessary to ensure that the bank guarantee is available to BBNL, if required.

10.5. Importance of Bank Guarantee Register

10.5.1. Bank Guarantees are one of the remedies available to the BBNL for covering risk during the

performance of the contract. It is therefore necessary that bank guarantee be properly entered

in the register and monitored so that these remedies are available. Monthly checks of all the

pending bank guarantees which expire in the next three months are necessary. All bank

guarantees which are likely to expire during the next three months, should be followed up with

regard to the performance of the supplier against the contract. In case the supplier has

satisfactorily performed this contract, then no further action will be taken. However, in case the

supplier has not performed satisfactorily, then it would be necessary to ask for an extension of

validity of bank guarantee for a further period of 6 months to 1 year so that these remedies

would continue to be available to the BBNL. Therefore, when the monthly check-up of the bank

guarantee register is carried out, the bank guarantees likely to expire in the next three months

needs to be separated out in two categories viz.

a) which are by and large OK and

b) where extensions need to be asked for immediately.

10.6. Extension of Bank Guarantee

10.6.1. If extension of the Bank Guarantee is required then the supplier should be intimated at least two

months before the expiry date for furnishing the extension well in time. If extension is not received 15

days before the expiry of the Bank Guarantee, then a formal letter should be issued to the bank

asking for revocation unless the Bank Guarantee is extended as per BBNL requirements. If the Bank

Guarantee is not extended then it should be encashed as per para10.9.2.

10.6.2. It should be ensured that the Bank Guarantee is not allowed to expire in any circumstances.

10.7. Operation of the Set-off Clause

10.7.1. The suppliers are asked to furnish separate bank guarantee for each purchase order. At

present, there is no practice for an omnibus bank guarantee, covering say one year. In order to

cover risk element, the purchase order should contain a set-off clause which will enable BBNL

to encash any bank guarantee(s) given by the same supplier against any other purchase order.

Therefore, it is prudent to keep all the bank guarantees of a supplier recorded at the same place

in the register so that the operation in the set-off clause wherever felt necessary could be under

taken without any problem.

10.8. Release of Bank Guarantee

10.8.1. Before bank guarantee is released, it should be ensured that the equipment has been taken

over satisfactorily by BBNL, no claim is pending against the supplier and that the equipment

was working satisfactorily during warranty period. The combination of "taken over" certificate

and "no claim" certificate will lead to release of the bank guarantee to the supplier.

10.9. Encashment of Bank Guarantee

10.9.1. This is resorted to where the supplier fails to honour its contractual obligations. The precaution

to be taken is to ensure that the bank guarantee is still valid. A formal letter to the bank giving

particulars of the guarantee number asking for revocation of the Bank guarantee in favor of the

BBNL, needs to be issued.

10.9.2. Even in case where BBNL has asked for extension well in advance, the extension has not been

given by the bank, then it is within the rights of the BBNL to encash the bank guarantee just prior


to the date of expiry and the bank is bound to honour this revocation.

10.10. Acceptable Forms of Performance Security

10.10.1. The Performance Security should be in the form of a Bank Guarantee issued by a scheduled

bank in favour of BBNL. Performance security in the form of Account Payee Demand Draft or

Banker’s Cheque, safeguarding the purchaser’s interest in all respects, shall also be

acceptable. However no interest shall be payable on this account.

10.11. Format of Performance Security (PBG)

10.11.1. A model format of Performance Bank Guarantee is provided at Section-IX of Chapter 4

(Standard Tender Enquiry Document).

10.12. Verification of the Bank Guarantees

10.12.1. Bank Guarantees submitted by the bidders as Performance security or additional bank

guarantee must be immediately verified from the issuing Bank before acceptance

***


CHAPTER - 11

11. ADVANCE PURCHASE ORDER

11.1. Purpose

11.1.1. The purpose of the Advance Purchase Order (APO) is to formally intimate the successful

bidder/bidders of the intention of BBNL to procure the equipment/ services.

11.2. Contents

11.2.1. The APO shall contain the following information :

a) Equipment and services to be procured with quantities and price.

b) File number and date of reference.

c) Commercial conditions governing the contract.

d) Technical Specifications

e) Finance aspects such as advance payable (if any), amount of Performance Bank Guarantee along with format of the Bank Guarantee.

f) Delivery Schedule.

g) Period within which the Bidder has to confirm acceptance to the APO along with the

performance bank guarantee in enclosed approved format from a Nationalized /

Scheduled Bank.

h) Annexures comprising sections-III, IV-B, IV-C of the bid document, AMC draft, scope of work, detailed bill of material, make-model list, etc

11.3. Format

11.3.1. Format of the APO is given below for ready reference.


ADVANCE PURCHASE ORDER FORMAT

Bharat Broadband Network Ltd. (A Govt. of India Enterprise)

………………………………………………………………………… New Delhi - 110 001

(MM Section)

File No………………………… Dated………………… APO NO: …………………………… Subject: Placement of Advance Purchase Order for supply of …………………………………. Reference: (1) Tender Enquiry No.: ……………………………..

(2) Your letter No …………………………………………….. Dated ………….. Dear Sir,

On behalf of Bharat Broadband Network Limited (BBNL), an Advance Purchase Order (APO) is hereby placed on you for the supply of …………….. as per the technical specifications, commercial & special terms & conditions of the tender under reference. The APO is likely to be converted into detailed Purchase Order after receipt of your unconditional/ unequivocal acceptance to this APO along with PBG for an amount of Rs…………….. The Bank Guarantee to be furnished should be strictly in BBNL format issued by an Indian Nationalized/ Scheduled Bank. The Bank Guarantee should be valid for a minimum period of……………….. and may be submitted in duplicate (one original copy & one photo copy). This APO is governed by the General (Commercial) Conditions of Contract (Attached as Annex-A), Special (Commercial) Conditions of Contract (Attached as Annex-B) and the Special (Technical) Conditions and Technical Specifications (Attached as Annex-C). The subject APO is being placed on following terms & conditions. 1. Conversion of the APO into Purchase Order

The APO is likely to be converted into detailed Purchase Order (PO) after receipt of your

unconditional/ unequivocal acceptance of this APO along with Performance Bank Guarantee (PBG) for an amount of Rs…………………… with all other documents and information as called for in this APO. The PBG to be furnished should be issued by a Nationalized/ Scheduled Bank and strictly in accordance with BBNL format. 2 Quantity ……….. 3. Prices

The supply shall be governed at unit prices on all-inclusive basis i.e. Excise Duty, Sales Tax, packing, freight, forwarding, insurance etc but excluding octroi/ entry tax which shall be paid extra as per actuals, wherever applicable. The price shall further be governed in accordance with clause No.12 and 24 of Section-III of Bid-document. The detailed prices are given below:

Sl. Item Qty. Basic Excise Sales tax F & F Unit price Unit

No Nos. unit price duty % % Rs. pkg & all CENVAT

Rs. Rs. insur % inclusive Rs.

Rs. Rs.


4. Delivery Period 4.1 ………………….

(The detailed month wise-supply schedule shall be mentioned) (installation commissioning period, if any shall be mentioned).

4. 2 The equipment supplied will be strictly in accordance with the specifications laid down by the

BBNL. The supply shall be made only after QA ( ) have carried out necessary inspection/testing and approved the equipment for supply to BBNL.

5. Payment terms

5.1 The payment schedule will be as under (The payment schedule shall be mentioned): 5.2 The payment shall be made in Indian Rupees.

5.3 For claiming the payment, the supplier has to submit the following documents to the paying

authority:-

(i) Invoice clearly indicating break up details of composite price i.e. Basic, E.D., Sales Tax,

any other Duties and Taxes, Freight/ Packing Charges, Service Tax etc. (ii) Acknowledged Delivery Challan (iii) Supplier certificate for dispatch (iv) Excise gate pass/ invoice or equivalent document viz. Costom invoice, where applicable (v) Inspection Certificate of QA as per clause no.….. of Section ….. (payable copy) (vi) Consignee receipt. (vii) Proof of payment of octroi/ entry tax etc, if any. (viii) “If the supplier fails to furnish necessary supporting documents i.e. excise/ Customs

invoices etc. in respect of the Duties/ taxes which are VA/ CENVAT-able, the amount pertaining to such Duties/ Taxes will be deducted from the payment due to the firm.”

5.4 Payment against CENVAT-able duty will be made only when CENVAT-able invoice is

submitted by the supplier. 6. Warranty

The warranty of the equipment will be for ………..months period starting from the date of ………………….. The supplier will provide support service during this warranty in its factory facilities. The warranty of the equipment shall be as per clause No. 10 of General (Commercial) conditions and clause ….. of Special (Commercial) Conditions..

7. Delayed supply and LD 8. Fall Clause: 9. Annual Maintenance Contract (AMC)

Terms & conditions of AMC are attached as Annex-G.

10. Scope of the Work.

The scope of work will be as under ( as per Annexure). 11. Technical Specifications.- 12. Quality Assurance and Inspection

M/s ………. will propose the test schedule within 1 week of issue of P.O. for testing of functional requirements including validation of various reports. This test schedules shall be examined by BBNL and finalized within 2 weeks of receipt of the same to make it as a reference document for testing by BBNL.


13. A/T Acceptance:

This will be governed as per the existing conditions of tender under reference (i).

14. Training

Training to BBNL staff shall be imparted by supplier for implementation and operating the system for 2 days in each of the Telecom circles (Total ….. days). The logistics for the training will be arranged by BBNL.

15. This APO is subject to security clearance from the Licenser/ Government Final PO shall be

issued only after the receipt of security clearance from the Licenser/ Government within 30 days of applying for the same by purchaser/BBNL.

16. BBNL reserves the right to cancel Purchase Order if the agreed delivery schedule is not

adhered to by the supplier. Any loss arising out of such delays in the supply of the equipment shall be on the supplier account.

17. The supplier shall submit unconditional acceptance to all the technical, commercial

clauses/conditions of the tender document, GR and clarifications issued, along with acceptance of the APO.

18. The supplier shall submit their unconditional/ unequivocal acceptance of the APO alongwith the requisite Performance Bank Guarantee within 14 days from the date of issue of the APO. In case your acceptance is not received within the stipulated period, the APO in question shall deem to be withdrawn automatically without assigning any further reason at your entire risks and responsibilities. In the event of withdrawal of APO, subsequent claim of the supplier for placement of Purchase Order shall not be entertained by BBNL.

19. This APO & PO/Contract is subject to jurisdiction of Court at …….. only

Yours faithfully

( ) Sr. Manager/ Manager( )

Enclosures:- 1.General (Commercial) Conditions of Contract (Annexure-A) - …… pages.

2. Special (Commercial) Conditions of Contract (Annexure-B) - …... pages. 3. Special (Technical) Conditions & Technical Specifications (Annexure-C) …… pages.

4. Detailed Bill of Material (Annexure-D) ….. pages. 5. Make & Model List (Annexure-E) …… pages 6. Circle wise (or SSA wise) allocation list (Annexure-F) …… pages

7. Terms and conditions of AMC (Annexure-G) …… pages. 8. ……..

Copy to : 1. GM (User Group), BBNL CO, New Delhi. 2. CGM QA 3. AGM (User), BBNL CO, New Delhi, w.r.t. his U.O. Note No ……………….. Dt …….. 4. ……… 5. ………

Yours faithfully

( ) [Hint: This is only a template. The actual Advance Purchase Order may be customized on case-to-

case basis as per requirement while also keeping in view the relevant tender clauses.] ***


CHAPTER - 12

12. PURCHASE ORDER

12.1. Conditions for issue

12.1.1. The issue of Purchase Order in any procurement is contingent to the following conditions being

met:

a) The Committee for Evaluation of Tender recommendations, including any modifications, where felt necessary, being approved by the competent authority.

b) The purchase proposal being approved and concurred by the competent

administrative authority and finance advice.

c) The successful bidder/bidders accepting the Letter of Intent/Advance Purchase order containing all the commercial clauses and prices unconditionally.

d) The successful bidders providing the required Bank Guarantee from the Nationalised/

Scheduled Bank.

e) The issue of Purchase Order, in the approved format being approved by the CGM/ GM in charge of procurement.

f) The Purchase Order shall be issued on firm prices only.

12.2. Competent Authority to Issue Purchase order 12.2.1. On the fulfillment of the conditions necessary to issue the Purchase Order, the designated Sr.

Manager/ Manager of the MM Branch would be competent authority to issue the Purchase Order.

12.3. Purchase Order Format 12.3.1. A sample format of purchase Order is given in Annex 12.1 for ready reference.


PURCHASE ORDER FORMAT

Bharat Broadband Network Ltd.

(A Govt. of India Enterprise)

………………………………………………………………. New Delhi - 110 001

(MM Section)

File No.__________________ Dated__________

PO NO……………………………………..

Subject:- PURCHASE ORDER FOR THE SUPPLY OF …………………………..

______________________________________________________________

1 Name & Address :

of Contractor

2 Name of : Bharat Broadband Network Limited (BBNL).

Purchaser A Government of India Enterprise

(Hereafter referred to as Purchaser).

3 Purchaser’s i T.E. No……………………………………………

reference

ii BBNL APO No…………………………………..

4 Contractor’s i Your acceptance to above APO vide your letter No. …………..

reference ii

iii 5 Scope of the PO 6 Consignee

Details, Paying Authority etc.

7Delivery 7.1 The total delivery period for supply of …………… equipment shall

Schedule be …………..from the date of placement of Advance Purchase Order. The first …………..months shall be for validation and lead time for preparation. The supplies shall be evenly distributed month-wise and circle-wise as given below:- (The delivery schedule will be mentioned)


8 Performance

Bank Guarantee 9 Quantity and Price

7.2 If the supplier fails to complete the supply during the original delivery

period, the purchaser reserves the right to cancel the Purchase Order & take action according to the terms & conditions of the tender.

M/s……….has accepted the APO unconditionally/ unequivocally & has furnished performance bank guarantee for an amount of Rs………….. vide BG No. ……….dated ……… by………….. and this PBG is valid upto …………...

The detailed prices are given below:

Sl. Type Qty. Basic unit Excise Sales tax F & F pkg Unit price Unit No Nos. price duty % % Rs. & insur % all CENVAT

Rs. Rs. Rs. inclusive Rs. Rs.

10 Payment Terms <Payment conditions to be mentioned>

For claiming payment, the supplier shall submit the following:

(i) Invoice clearly indicating break up details of composite price i.e. Basic, E.D., Sales Tax, any other Duties and Taxes, Freight/ Packing Charges, Service Tax etc

(ii) Acknowledged Delivery Challan

(iii) Supplier certificate for dispatch

(iv) Excise gate pass/ invoice or equivalent document viz. Costom

invoice, where applicable

(v) Inspection Certificate of QA as per clause no.….. of Section ….. (payable copy)

(vi) Consignee Receipts

(vii) Proof of payment of Octroi/ entry tax etc., if any

(viii) “If the supplier fails to furnish necessary supporting documents i.e.

excise/ Customs invoices etc. in respect of the Duties/ taxes which are VA/ CENVAT-able, the amount pertaining to such Duties/ Taxes will be deducted from the payment due to the firm.”

Payment against CENVAT-able duty will be made only when CENVAT-able invoice is submitted by the supplier.

11 Specification The complete equipment supplied shall be strictly in accordance with the technical specifications of the tender and placed at Annexure-3 and all other amendments & clarifications issued/ to be issued by this office. BBNL Procurement Manual 2013 Page 83

12. Insurance : The equipment shall be got insured by the Contractor up to a minimum period of……………..days after store is delivered to the consignee. The supplier will be responsible till the entire quantity of the stores ordered for arrival in good working conditions at destination is received by consignee. The consignee will immediately but not later than prescribed period of insurance of arrival of the stores at the destination notify the contractor of any loss or damage to the store that may have occurred during transit. The period of insurance cover will be indicated by the contractor to consignee/ paying authority. In case of any loss/ damage during transit the case will be lodged by supplier with the concerned authority on receipt of report from the consignee/ paying authority. The store should on no account be dispatched, delivered without getting them tested/ accepted by BBNL Inspecting & QA Testing Wing.

13 Installation

& Commissioning

14 Repair Center : The supplier shall have to establish nodal repair centers in India for undertaking repair of faulty modules/PCBs including tools and testers. There shall be at least one nodal centre in each circle allotted to the supplier. The turnaround time for such repairs shall be maximum 21 days as per the provisions made in AMC conditions included in this tender. The supplier shall clearly intimate the site for such repairs in advance.

15 Training

16 Documentation

17 Validation/ TSEC The supplier shall have to get their ………equipment type approved / validated from TEC or a team nominated by BBNL. All the shortcomings observed during TAC/Validation process shall also be rectified by supplier in all the supplies already made/to be made without any cost. The supplier shall also be responsible to get the Acceptance Testing (A/T) done through the A/T Wing of BBNL.

19 Warranty

20 Other conditions 20.1 The supply of ………….equipment shall be governed as per General of the contract (commercial) conditions of the contract given in Annex.-B and special conditions of contract given in Annex.-C and as per procurement manual ………..

20.2 The entire supply shall also be governed as per all terms & conditions as

laid down in the bid document of the tender enquiry and as modified from


time to time. Any amendment/clarification/modification issued /to be issued shall also be applicable for this supply. However, wherever there is a conflict, special conditions as given in section IV of bid document and conditions given in this Purchase Order will prevail over the general conditions given in Section-II & III in the bid document.

21 Fall clause:

22. This PO/Contract is subject to jurisdiction of Court at ………………only

Sr. Manager/ Manager ( )

Enclosures:- 1.General (Commercial) Conditions of Contract (Annexure-A) - …… pages.

2. Special (Commercial) Conditions of Contract (Annexure-B) - …... pages. 3. Special (Technical) Conditions & Technical Specifications (Annexure-C) …… pages. 4. Detailed Bill of Material (Annexure-D) ….. pages. 5. Make & Model List (Annexure-E) …… pages 6. Circle wise (or SSA wise) allocation list (Annexure-F) …… pages

7. Terms and conditions of AMC (Annexure-G) …… pages. 8. ……..

Copy to : 1. GM (User Group), BBNL CO, New Delhi.

2. CGM QA

3. AGM (User), BBNL CO, New Delhi, w.r.t. his U.O. Note No…………….Dt ………………..

4. …………………..

5. …………………..

Yours faithfully

( )

[Hint: This is only a template. The actual Purchase Order may be customized on case-to-case basis

as per requirement while also keeping in view the relevant tender clauses.]


CHAPTER - 13

13. GUIDIELINES FOR PLACEMENT OF EDUCATIONAL ORDERS

13.1. The Need 13.1.1. The purpose of educational order is to develop new potential source of commercial supplies by

broadening the supply base and encourage competition so that BBNL could have the benefit

with regard to quality, delivery and price and break possible cartelization among the established

vendors. The need for placing educational orders on a vendor for any item would be approved

by the concerned functional Director of the user section.

13.2. Nomenclature

13.2.1. The nomenclature of such orders would be "Educational Purchase Order".

13.3. Type Approval

13.3.1. An educational order would be given only to a vendor who has obtained type approval of the

equipment or item of store concerned from the TEC or the BSNL QA as the case may be.

13.4. Quantity of Order 13.4.1. The educational order for an item in favour of any vendor will be restricted in a year to a

maximum of one per cent of the total requirement for the year or an amount of Rs. One Crore.

In case the requirement for the current year is not available, it will be restricted to one per cent

of actual purchases made in the previous year.

13.5. Price 13.5.1. The order can be placed upon him subject to various restrictions mentioned in this chapter at a

price which is 10% less than the latest tender price for the concerned item. In case, the tender

price for the current year is not yet available, the price would be fixed provisionally at 75% of the

last year's price which will be suitably adjusted to 90% of the current price when it becomes

available.

13.6. Applicability

13.6.1. The above guidelines will apply to educational orders in respect of such items of telecom

equipment and stores as are the subject of central purchase by the BBNL Corporate office.

13.7. Exceptions 13.7.1. Any exception to the above guidelines will be made only in very exceptional cases under the

authority of BBNL Corporate Office.

***


CHAPTER - 14

14. PRICING AND PRESERVATION OF THE TENDER DOCUMENTS

14.1. Pricing of the tender documents 14.1.1. The company incurs expenditure for the preparation of bid documents. It is also desirable that

only the genuine prospective bidders should acquire these bid documents to avoid wastage.

With this in view, it is decided that the bid documents to be issued to the prospective bidder

must be sold at the pre-determined price. The price of the document is determined on an

estimated cost of procurement and is indicated below:

Sl.No Estimated cost of tender Bid document price

I Upto Rs 1 Lakh Rs 100/-

ii Above Rs 1 Lakh and uptoRs 50 Lakh Rs 500/-

iii Above Rs 50 Lakh and uptoRs 1 Crore Rs 1,000/-

iv Above Rs 1 Crore and uptoRs 10 Crores Rs 2,000/-

V Above Rs 10 Crores and uptoRs 50 Crores Rs 4,000/-

vi Above Rs 50 Crores and uptoRs 150 Crores Rs 8,000/-

vii. Above Rs 150 Crores Rs 10,000/-

Note: Bid documents for limited tenders of estimated cost upto Rs 50,000/- (Rupees Fifty

Thousand Only) may be issued free of cost. However, bid documents for limited tenders of estimated cost above Rs 50,000/- may be priced as per the details given above.

14.1.2. However, the Tender documents to Micro and Small Enterprises registered with Appropriate

Authority shall be given free of cost. Before issue of such Tender documents free, they should be

asked to submit details of their registrations with Appropriate Authority for the tendered item. Their

eligibility as per terms and conditions of the tender in question should also be examined and if they

meet the conditions stipulated, they may be issued the Tender Documents Free.

14.2. Preservation of tender documents 14.2.1. As per the bid documents a bidder submits 5 copies including the original bid document. 4

copies of the bid documents are distributed among the members of the Committee for

Evaluation of Tender. Each member of the Committee for Evaluation of Tender will preserve his

copy up to a month after the purchase orders are issued against a tender enquiry. One month

after the issue of the purchase orders the bid document may be disposed off by the member

themselves. MM Cell will continue to keep the original copy till the contractual obligations are

over. In case of e-procurement, all the documents submitted electronically alongwith the trail of

events would also be properly stored in a read-only format.

14.3. Post-bid clarifications from bidders

14.3.1. One set of documents submitted by bidders after opening of bids in response to clarifications

sought by BBNL during evaluation should be preserved in MM Cell (Tendering Section in

Corporate Office) along with the original bids of the bidders.


CHAPTER 15

15 - Concessions to Micro, Small and Medium Enterprises

15A. CONCESSIONS TO MICRO, SMALL AND MEDIUM ENTERPRISES

15A.1. Ministry of MSME has issued the Public Procurement Policy for MSEs, Order 2012 which

envisaged certain benefits in Public Procurement for MSEs. It has been decided that these units

may be allowed concessions as envisaged in the policy in the letter and spirit of the said orders.

The concessions allowed are as follows:

15A.2. SUPPLY OF TENDER DOCUMENTS

15A.2.1. Tender documents shall be issued to MSEs bidders free of cost. Before issue of such

documents free, the bidder should be asked to submit details of their registration with the

appropriate authority for the tendered item. Their eligibility as per the terms and conditions of the

tender in question should also be examined, and if they meet the conditions stipulated, they may

be issued the documents free.

15A.3. EXEMPTION FROM PAYMENT OF BID SECURITY DEPOSIT

15A.3.1. MSEs registered with appropriate authority shall be exempted from payment of earnest

money.

b) A proof regarding registration with appropriate authority for the tendered items will have to be

attached along-with the bid.

15A.4. PROCUREMENT FROM MICRO AND SMALL ENTERPRISE

15A.4.1. In tender, participating MSEs quoting price within price band of L1+15 per cent shall also be

allowed to supply a portion up-to 20% of requirement by bringing down their price to L1 Price

where L1 is non MSEs. In case of more than one such MSE, the supply shall be shared

proportionately (to tendered quantity)

15A.4.2. A sub-target of 20% of 20% of annual procurement shall be earmarked for procurement from

MSEs owned by SC/ST enterprises.

15.A.5. DELAYED PAYMENTS TO MICRO, SMALL AND MEDIUM ENTERPRISES

15.A.5.1. Where any supplier supplies any goods or renders any services to any buyer, the buyer

shall make payment therefore on or before the date agreed upon between him and the supplier

in writing or, where there is no agreement in this behalf, before the appointed day: Provided that

in no case the period agreed upon between the supplier and the buyer in writing shall exceed

forty-five days from the day of acceptance or the day of deemed acceptance.

15.A.5.2. In case buyer fails to make payment of the amount to the supplier, as required under section

15.A.5.1, the buyer shall be liable to pay compound interest with monthly rests to the supplier on

that amount from the appointed day or, as the case may be, from the date immediately following

the date agreed upon, at three times of the bank rate notified by the Reserve Bank.

15.A.6. The above facilities are available to enterprises registered with District Industries Centers

(DICs)/ Khadi &Village Industries Commission (KVIC)/ Khadi & Village Industries Board (KVIB)/

Coir Board/ NSIC/ Directorate of Handicrafts and Handloom or any other body specified by

Ministry of Micro, Small & Medium Enterprises (MoMSME)

15.A.7. Organizations placing Purchase Orders/ Work-order for procurement of goods/ Services on

behalf of BBNL shall give undertaking regarding compliance with the requirement of MSMED

Act-2006 and/ or Public Procurement Policy for MSEs Order, 2012 and will be liable for timely

payments to MSEs suppliers

***


CHAPTER - 16

16. METHODOLOGY FOR ROUTES OTHER THAN OPEN TENDER

16.1. Expression of Interest Route 16.1.1. In situations where BBNL proposes to induct new technology/ equipment/ new service/

consultancy services and the specifications of the new technology/ equipment/ new service/

consultancy services are not firmed up, BBNL may invite Expression of Interest (EOI) from the

available vendors of that technology/ equipment/ new service/ consultancy services. Based on

the offers received from the bidders who choose to participate in the EOI, the bidders satisfying

the terms of EOI will be short-listed. Before short-listing the participants for handing over the

tender documents, BBNL may freely interact with them, obtain clarifications and feedback on

the delivery of similar equipment/ services elsewhere. The short listed bidders will be given the

tender document containing detailed technical, commercial and financial conditions. After

evaluation by a designated committee, the contract shall be awarded with the approval of

competent authority to the successful bidder(s) as per the terms and conditions stipulated in the

EOI and the technical, commercial and financial bid.

16.2. Limited tender Route

16.2.1. There are certain specific provisions for calling the limited tender appearing under Rule 151 in

the General Financial Rules (GFRs) and delegation of Financial Powers of BBNL. The limited tender option has to be exercised in specific circumstances as already provided.

16.2.2. In some cases the equipment is sophisticated and requires thorough technical screening,

testing and prototype approval by the Telecom Engineering Center/ Quality Assurance of BSNL

till such time alternate arrangement is finalized, to ensure that these equipments are of sufficient

quality level to be used in public Telecom Network. In such cases an open tender may result in

the participation of unknown bidders in open tenders, whose capability in making such

equipment is yet to be established. They may submit unrealistic bids which may cause major

difficulties in the tender evaluation process. In such cases, it would be necessary to screen out

such bidders so that BBNL could interact only with bidders who have intrinsic capability as well

as proven track record of supplying such sophisticated equipment. Where such equipments are

required, it would be worthwhile restricting Bids by issue of limited tenders only to those parties

who have proven expertise in manufacture and supply of such equipment and who have

prototype approval and production clearance. In such tenders it is essential that the reasons for

limiting the tenders to proven suppliers needs to be brought out in the NIT itself so that such an

action would stand justified. The issue of such limited tender should have the concurrence of

Financial Advisor and approval by the Executive Committee of BBNL.

16.3. Negotiations Route

16.3.1. In a situation where the requirement is of an immediate nature and it is necessary to ensure

continued supplies or addition of new features from the existing vendors, the BBNL Executive

Committee may decide to place repeat orders upto 100% of the quantities contained in the

running contract and at a rate negotiated with the existing vendors considering the prevailing

market conditions. This route may also be adopted in cases where the goods/ services are

proprietary in nature. Depending upon the total value of additional procurement, the negotiation

committee can be constituted with the approval of Executive Committee of BBNL Board. This

route will however be resorted to in exceptional circumstances and approval of one level higher

authority would be required.

16.4. Rate Contract Route

16.4.1. Certain items/ services which are required in the organization, however, their quantity at the time


in which such items are required is not known. In such cases, the rate contract (RC) route may

be adopted. BBNL should have own rate contracts, for which, open tender procedure shall be

followed. The items/ services for which Rate Contract to be adopted shall be decided by BBNL

Corporate Office.

16.4.2. Valid Rate Contracts of DGS&D may be used for items/ services for which rate contract of

BBNL is not available.

16.4.3. The rates should not be older than one year. Before making the purchase, the User Section

should confirm that the specifications of the goods available on rate contract are meeting the

requirements of BBNL.

16.4.4. The purchase should be done within the delegated financial powers and approval of one level higher authority would be required.

16.5. Nomination Route

16.5.1. BBNL may get some work executed on nomination basis by entering into MOU with

Government organisations/ Central PSUs, herein referred as partner organisations. The MOU

route shall be applied only on cases specifically approved by BBNL Board. Very strict timelines

have been set for BBNL for executing the NOFN Project. BBNL is a nascent organisation and

staff and office establishment is practically non-existent. Due to these constraints, a number of

activities cannot be carried out by BBNL and to achieve the targets, capabilities of other

organisations may be used. Nomination route may also be used where design/ development is

of typical nature. Outsourcing is an accepted and efficient method of leveraging the strengths of

other organisations.

16.5.2. Only those activities will be carried out by partner organisations which cannot be done by BBNL within given parameters and constraints.

16.5.3. Signing of the MOU between BBNL and the partner organisation would indicate the

administrative sanction to carry out the work. The MOU would contain the broad scope of work,

responsibility matrix, timelines for execution, methodology, payment milestones, penalty clauses

and other commercial and legal clauses.

16.5.4. In some cases, MOU may be followed by detailed agreement(s), which may specify specifications, construction practices, SRS etc.

16.5.5. BBNL may work out in consultation with partner organisations the control on cost, quality and time appropriately.

16.5.6. BBNL would provide the specifications and other requirements to the partner organisations. The

partner organisations would follow their own tender/ procurement procedures. They would adopt

a transparent bidding process wherever material procurement and/ or execution of work is

involved. The onus of selecting suppliers/ vendors through a transparent bidding process and

ascertaining the reasonability of rates would rest with the partner organisations for the tenders

floated by them. In case of design/ development project, cost plus method based on proper

documentation may be adopted.

***


CHAPTER - 17

17. LIST OF ABBREVIATIONS AMC Annual Maintenance Contract APO Advance Purchase Order BBNL Bharat Broadband Network Limited BCPC Bills Copy Payable Challan BOM Bill of Material BSNL Bharat Sanchar Nigam Limited CENVAT Central Value Added Tax CET Committee for Evaluation of Tender CIP Carriage and Insurance Paid CVC Central Vigilance Commission DOT Department of Telecommunications DTR Detailed Technical Requirements EA Executing Agency EMBG Earnest Money Bank Guarantee EMD Earnest Money Deposit EOI Expression of Interest GCC General (Commercial) Conditions of Contract GFR General Financial Rules GIB General Instructions to Bidders GP Gram Panchayats GR Generic Requirements HLC High Level Committee LD Liquidated Damages MOU Memorandum of Understanding NIT Notice Inviting Tender NOFN National Optical Fiber Network OFC Optical Fiber Cable PBG Performance Bank Guarantee PO Purchase Order RC Rate Contract SCC Special (Commercial) Conditions of Contract SIA Secretariat for Industrial Approval SIBEC Special Instructions to Bidders and Eligibility Conditions SOR Schedule of Requirement SPV Special Purpose Vehicle TAC Type Approval Certificate TEC Telecom Engineering Centre TSEC Technical Specifications Evaluation Certificate USOF Universal Service Obligation Fund VAT Value Added Tax

Appropriate Authority : District Industries Centres (DICs) / Khadi &Village Industries Commission (KVIC) / Khadi & Village Industries Board (KVIB) / Coir Board /NSIC /Directorate of Handicrafts and Handloom or any other body specified by Ministry of Micro, Small & Medium Enterprises (MoMSME)
