By B.Satish Babu, I.R.A.S Dy.FA&CAO/WS/Lallaguda, Secunderabad VIGILANCE AWARENESS WEEK 31 st Oct to 5 th Nov, 2011 Presentation on Vigilance awareness & Works matters 01/01/2022 1
May 10, 2015
04/11/2023 1
By B.Satish Babu, I.R.A.S Dy.FA&CAO/WS/Lallaguda,
Secunderabad
VIGILANCE AWARENESS WEEK 31st Oct to 5th Nov, 2011
Presentation on Vigilance awareness & Works matters
04
/11
/20
23
2
“Do not overlook negative actions merely because they are small ; however small a spark may be, it can burn down a haystack as big as a mountain”
Lord Buddha
04
/11
/20
23
3
T I – TRANSAPARENCY INTERNATIONAL
is the global civil society organisation
leading the fight against corruption.
More than 90 chapters worldwide
International secretariat at Berlin
Raises awareness of the damaging effects of corruption
Works with partners in Govt, business and civil society
Website : http://www.transparency.org
04
/11
/20
23
4
C P I - CORRUPTION PERCEPTIONS INDEX
The Transparency International –- the global coalition against
Corruption - measures CPI
Surveys 178 countries in 2010 year.
04
/11
/20
23
5
RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR
The 2010 Corruption Perceptions Index shows 3/4th of the 178 countries in the index score – below 5points.
On a scale from 10 (highly clean)to 0 (highly corrupt)
04
/11
/20
23
6
RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR
Denm
ark
New Z
eala
nd
Sing
apor
e
Myn
mar
Afgh
anista
n
Som
alia
Indi
a
0
2
4
6
8
10 9.3 9.3 9.3
1.4 1.4 1.1
3.3
Corruption Perception Index on a scale from 10 to 0
Corruption Percep-tion Index on a scale from 10 to 0
04
/11
/20
23
7
VIGILANCE ORGANISATION IN INDIA
CVC – CENTRAL VIGILANCE
COMMISSION (website :
www.cvc.nic.in)
Apex Body at National level having
jurisdiction over central Govt. Ministries
and PSUs.
Manned by Chief Vig. Commr. and to Vig. Commrs.
Issues directives to various Ministries which in turn issue procedure
orders for their own Departments.
04
/11
/20
23
8
VIGILANCE – RAILWAY BOARD LEVEL
. The Member(Staff)/ Railway Board is the functional Member in-charge of VigilanceHeaded by Adviser Vigilance
Assisted by various EDs followed by Joint Directors, Directors, Dy. Dir. & IIs.
04
/11
/20
23
9
Scenario of Corruption in India – an overview
It is estimated that Rs.26,728 Crores exchange hands in the form of bribe in India
Governments pay 20% to 100% more for their goods and services.
UN report says that if the corruption level in India is reduced to the level of Scandinavian countries, investment in the country would increase annually by 10% and GDP growth by 1.5%.
04
/11
/20
23
10
ANALYTICAL STUDY OF VIGILANCE CASES
PERCENTAGE VIGILANCE CASES ASPECT WISE
Selections, Appointments&
Promotions17%
Purchases17%
Others32%
Aw ard of Tenders & Contracts
34%
04
/11
/20
23
11
Vigilance Angle : What is it ?
Demanding and/or
accepting gratification other than
legal remuneration.
Obtaining anything of value without consideration or with inadequate
consideration from those with whom
official dealings are likely, either directly or by
exerting influence.
Obtaining for self or for any other person, anything of value or pecuniary advantage by corrupt or illegal means or by abusing the position as a public servant.• (cont’d)
Disproportionate Assets vis-à-
vis known sources of
Income
04
/11
/20
23
12
Vigilance Angle (cont’d)
Misappropriation, Forgery, Cheating or similar criminal
offences
Gross or willful negligence, reckless
decision making, blatant violation of systems and
procedures and excessive exercise of discretion
Other irregularities where circumstances will have
to be weighed carefully to view whether the
government servants’ integrity is doubtful
04
/11
/20
23
13
No action, as a general rule, is taken on Anonymous Complaints (i.e. complaints that do not bear name and address of the complainant) and Pseudonymous Complaints (i.e. complaints which do not bear the signature of the complainant or which on verification is not owned by the person in whose name it is made).
However, verifiable facts alleged in such complaints may be looked into with prior concurrence of CVC.
04
/11
/20
23
14
VIGILANCE AS A BITTER PILL
- Neither liked by honest officer nor a dishonest officer.
Yet its absence will be harmful to the organisation.
Like bitter pill, the vigilance dept. will taste sour. But in the long run, it will be in the good health of an organisation.
04
/11
/20
23
15
Objective of VigilancePrevention of corruption.
Promotion of Integrity.
Promotion of Vigilance
consciousness, amongst
Railway
men.
Effecting system improvement.
Advise suitable administrative or disciplinary action.
04
/11
/20
23
16
Vigilance is
Not a stand alone activity.
A part of the overall risk
management strategy of an organisation.
-to prevent leakages which adversely affect productivity and
profitability.
04
/11
/20
23
17
Vigilance is
It is not the purpose of
Vigilance to wait for lapses to be committed and
then try to conduct post
mortem.
Preventive intelligence is
more important than
punitive(penalising) vigilance
-in short, preventive vigilance
measures are more important like old adage
“PREVENTION IS BETTER THAN
CURE”
04
/11
/20
23
18
PREVENTIVE VIGILANCE
Cannons of Standards of Financial
propriety(Para 116 of I.Rly.Finance Code
vol.I)
Its like Bhagavdgita for all preventive
checks.
1. The Expenditure should not be prima facie be more than
the occasion demands
2. Every Govt. Servant should exercise the same VIGILANCE in respect of expenditure incurred from public money as a person of a ordinary prudence would
exercise in respect of the expenditure of his own money.
04
/11
/20
23
19
PREVENTIVE VIGILANCE
3. No authority should exercise its powers of
sanctioning expenditure to pass an order, which will directly or indirectly
to its own advantage.
4. Public moneys should not be utilised for the benefit of a particular
person or section of the community
5. The amount of allowances such as T.A, granted to meet expenditure of a particular
type should be so regulated that the allowances are not on the whole sources of profit to
the recipients.
04
/11
/20
23
20
DO’s1. Identify the purpose & plan in advance.
2. Clubbing the similar requirements from all units.
3. Description of item should be clear and complete with I.S.specification/drawing if any.
4. Specification should not be prepared in such a way that specification meets the requirements of a single product/specific
make.
04
/11
/20
23
21
DO’s5. Sample clause if any should be only for
ascertaining ‘TOUCH, FEEL & FINISH’ of the indented item, but not for its quality.
6.Quantity, Unit & Rate – should be quote in figures as well as words
7.Officer signing indent should clearly mention their name and designation.
8.Vetting is required for indents valuing Rs.one lakh and more(for safety items-Rs.Two lakhs
and more)
04
/11
/20
23
22
DO’s9. If the demand of the item is
recurring, convert the same as Stock item.
10. Essentiality certificate should be certified by the Indenting Officer.11. Ensure Funds availability and
ascertain correct head of account to be debited before placing Indents.
04
/11
/20
23
23
12. The description of the item should normally be arranged in Order.
A. Basic commodity
C. Composition/size/color/shape
D.Specification/drawing No.
04
/11
/20
23
24
PREVENTIVE VIGILANCE-PURCHASES
Should be invariably on a Public Tender
basis.
Tenders should be both for technical and financial
bids. Technical bids should be scrutinized before
financial bids are opened.
List of suppliers should be reviewed
periodically.
Delivery samples should be got checked with
basic samples.
04
/11
/20
23
25
PREVENTIVE VIGILANCE-PERSONNEL
Periodical rotation of
Officers/staff in sensitive posts.
Review of Immovable property returns submitted by Officers/Staff.
Proper implementation of DA Rules to weed
out corrupt officers.
Institution of effective grievance
procedure enquiry.
04
/11
/20
23
26
TENDERS AND CONTRACTS
A VIGILANCE POINT OF VIEW
04
/11
/20
23
27
CVC leverages technology in their mission - how?
1. E-Procurement – for efficiency in the procurement of goods, works and services.-- brings in greater transparency, thus reducing opportunities for corruption.-- publish their tenders and complete bid documents along with the application forms on the Website itself duly curbing mal-practices prevailing in various govt offices where competition is sought to be restricted.
04
/11
/20
23
28
CVC leverages technology in their mission - how?
2.
2. E-Payment- Here again bring economy and efficiency and at the same time reducing corruption.- Leveraging technological advances in the banking sector for the benefit of government organisations like Railways, Defence etc.- Reducing transaction costs involved in making payments by way of cheques and sending the same through courier.- Also curbs corruption which accompanies handing over cheques to contractors, suppliers etc.
04
/11
/20
23
29
CVC leverages technology in their mission - how?
04
/11
/20
23
30
CVC leverages technology in their mission - how?
04
/11
/20
23
31
CVC leverages technology in their mission - how?
Post on the website, summary every month, of all the tenders/works contracts of value more than One Crore Rupees of Engg./Mech/Elec/S&T/ Medical department, Rs.50 Lakhs for Commercial Dept. and all the purchases of value more than Rs.20 Lakhs done through Stores contract (Rly.Bd;s Lr. No.2004/V-1/CVC/1/18 Dt.13-04-2005). - Actual date of start of work.- Actual date of completion.- Reasons for delays if any.
04
/11
/20
23
32
Open Tenders Common Irregularities
Inadequate tender notice
Inadequate time for participation
Inadequate publicity
Late availability of tender documents
Tender box not available in advance
Deviations in eligibility criteria
04
/11
/20
23
33
LIMITED TENDERS COMMON IRREGULARITIES
Arbitrary selection of firms.
Firms with better experience ignored and firms with dubious credential selected.
Inadequate time given for participation in tender.
Tender notice not sent to all the firms.
Bogus firms selected to inflate the number.
Rates can be reasonably higher since the competition is restricted.
04
/11
/20
23
34
SINGLE TENDERCOMMON IRREGULARITIES
Projecting undue/artificial urgency
Selecting unsuitable tenderer based on exaggerated credential ignoring his past failures.
Accepting exorbitant rates on the grounds of urgency then merrily giving extensions with token penalty or without penalty.
04
/11
/20
23
35
IRREGULARITIES IN EXECUTION OF CONTRACT
Failure to incorporate accepted tender conditions in contract agreement.
Introduction of conditions having financial implications.
Change in specifications during execution.
Altering the location or nature of work giving undue advantage to the tenderer.
(Contd.)
04
/11
/20
23
36
Unreasonable variations in terms of quantity.
Introduction of new non-schedule items.
Acceptance of material of inferior brand than specified in contract agreement.
Acceptance of material after date of expiry.
Acceptance of under specification supply.
Accepting material without inspection certificate.
Accepting material without delivery challans.
IRREGULARITIES IN EXECUTION OF CONTRACT
04
/11
/20
23
37
Waival of inspection or change in inspecting authority.
Relaxation of technically rigid requirements.
IRREGULARITIES IN EXECUTION OF CONTRACT
04
/11
/20
23
38
IRREGULARITIES IN CONTRACTUAL PAYMENTS
Temporary overpayment in running bills.
Payment in anticipation of work to be done or supply to be made.
Payment for the services not rendered.
Inflated measurements.
Multiple measurements.
Final over payment.
04
/11
/20
23
39
RECORDING OF WORK IN (MB)
As per Para No.1313 of Engineering Code payments for all work done otherwise than by departmental labour and for all supplies are made only on the basis of measurements recorded in Measurement Books (Form E.1313).
Supervisor in charge of the work has to record measurements in the MB as per rules contained in relevant Paras of Engineering Code.
04
/11
/20
23
40
TEST CHECK MEASUREMENTS BY NEXT HIGHER AUTHORITY
Measurements recorded by an authority should invariably be test checked by the next higher authority. Such test checks of the measurements by the next higher authority as per the prescribed scales is necessary to safe guard against any mistakes and inaccuracies and which may be caused unintentionally and inadvertently (Rly.Bd’s Lr.Dt. 27-10-2002).
10% test check for works costing up to Rs. 25,000/- each and 20% for works costing above Rs.25,000/- each is necessary by Asstt/Divnl. Officer.
04
/11
/20
23
41
DO’S (GENERAL)
Keep a good image before the public/staff by being honest, impartial and just. Always be punctual in attendance.
Be conversant with the current rules and regulations before taking any decision.
Be conversant with the relevant clauses of the Conduct Rules and ensure that these Rules are not infringed.
Use your discretion properly to avoid any miscarriage of justice.
04
/11
/20
23
42
DO’S (GENERAL) Be dispassionate while taking decisions so
that undue favour accrues to anyone.
While using staff cars ensure personally that the journey if performed for private purposes, is indicated so in the ‘remarks’ column of the Register and also indicating whether on duty/leave.
While occupying Rest houses, ensure filing up the Register and also indicating whether on duty/leave.
Maintain proper record of C.L/LAP availed and ensure that it is properly debited to your account.
04
/11
/20
23
43
DONT’S (GENERAL)
Do not delay files/papers put up to you.
Do not forget to put a date under your signature. Absence of date may give rise to doubt about your motives in certain situations.
Do not misuse staff cars/vehicles, railway labour, railway materials, catering etc.
Do not misuse Duty passes for journeys performed, which are not for official work or for persons not entitled for such travel.
04
/11
/20
23
44
DONT’S (GENERAL)
Do not sit on the Selection Board before whom any relative of yours is appearing for selection.
Do not take part in the Tender Committee meetings if any of your relative is one of the tenders.
Avoid sanctioning a privilege to yourself even if it is within your own competence. Let such sanction be accorded by your superior.
04
/11
/20
23
45
OPENING OF TENDERS
Opened at the specified time, date and place by an officer nominated in the presence of A/C rep & authorised reps of tenderers.
Seal of the Tender Box to be checked
Tenders should be serially numbered
Initials on cover page and all other loose sheets attached by both executive & A/C rep.
Rates quoted should be circled.
04
/11
/20
23
46
OPENING OF TENDERS (CONTD…)
Corrections, over writings & omissions to be numbered and written on each page and attested with date.
Check completeness of tender form (for tampering etc.) downloaded from internet
Name of the tenderers and rates quoted by each tenderer should be read out and entered in the tender register in WORDS and initialed by both reps.
No clarifications to be solicited from tenderers
Samples, if any to be initialed
Any Blank Column shall be struck off by the tender clerk
04
/11
/20
23
47
OPENING OF TENDERS (CONTD…)
Delayed tenders to be marked so and opened in the same manner.
LATE tenders to be marked so and opened if received during opening session. Otherwise, to be opened by the Executive
Both the Accounts and Executive witnessing officials are INDIVIDUALLY responsible for following the procedure laid down for tender opening.
04
/11
/20
23
48
COMPARATIVE STATEMENT
Special Conditions having financial implications quoted by the tenderer if any: Remarks if any:
Signature of the Tender Clerk Signature of the Departmental Officer Name Name Designation Designation Signature of Section Officer Signature of Accounts Officer Name Name Designation Designation
TenSNo
Name of the Tenderer
Face Value of Tender in Rs.
Schedule - A Schedule -B Tot qtd val
EMD Details
MeritOrder
No.Rate qtd
Val in Rs.
Rate qtd
Val in Rs.
04
/11
/20
23
49
BRIEFING NOTE
Briefing Note shall include - Details of offers received Period of validity of offers EMD details of each tenderer Last accepted rates for similar type of works Financial implications on the special conditions Remarks on special conditions quoted by the tenderer,
if any Credentials of the tenderer Other certificates/documents submitted by the
tenderer Estimated provision for the work etc.
If any tender is BLACK LISTED, that should be brought out.
Details of the contracts of the tenderer during the last 3 years and current year should be brought out
04
/11
/20
23
50
TENDER NOTICE
Tender Notice shall be issued atleast 30 days in advance from the date of tender opening
In case of urgency – 21 days with prior finance concurrence and approval of DRM
Issue of tender schedules – immediately after tender notice With the approval of tender calling
authority – atleast 15 days prior to the date of tender opening
Date on which the tender documents will be made available on the website / in the office shall be clearly broughout in the Tender Notice
Eligibility criteria and similar nature of works should be specifically mentioned in Tender Notice and in the tender documents for OT above Rs. 50 lakhs
04
/11
/20
23
51
ELIGIBILITY CRITERIA
As per Sudhir Chandra Committee Report – Solvency Certificate from MRO or Nationalised/ Scheduled
Banks for 40% of the tender value for works more than Rs. 1 cr
Should have completed a similar nature of single work for a value of 35% of tender value
Turnover to the tune of 150% of tender value Similar nature of works
As per RB Lr No.94/CE-1/CT/4 dt 23.11.06 – PHOD of the Dept concerned shall issue guidelines
Finance concurrence and approval of Tender Accepting Authority is required for incorporation of similar nature of works other than those circulated by PHOD
Similar nature of work depends on the main element of the tender and shall be mentioned in NIT & Tender documents
Clubbing of dissimilar nature of works shall be avoided. If unavoidable, Eligibility criteria shall be indicated in NIT & TS after taking finance concurrence & approval of Tender Accepting Authority
04
/11
/20
23
52
LATEST GUIDELINES ON TENDERS
SD shall be 5% of the contract value and shall be recovered from runnng bills only @ 10%. BG, FDRs etc are not to be considered
PG shall be in the form of irrevocable BG issued by nationalised or scheduled bank – 5% of the contract value. FDR can also be accepted.
PG shall be furnished by the successful contractor within 30 days from the date of issue of acceptance letter & before the signing of the contract and valid upto expiry of the maintenance period
Clause on Conservancy Charges
20% Limitation clause on claims amount (for referring to arbitration) should be kept in BOLD letters.
04
/11
/20
23
53
PERFORMANCE GUARANTEE- P G
shall be submitted by the Contractor
within 30 days from LOA (Letter of Acceptance).
Extension can be given up to 60 days from LOA by the Authority who is competent to sign the Contract Agreement.
But 15% P.A penal interest to be charged for beyond 30 dyas.
Failed to submit the P G within 60 days from LOA, Contract shall be
terminated duly forfeiting the EMD and
other dues if any payable against the
Contract.The failed contractor will be debarred from participating
in the re tender for that work.
No Risk and Cost Tenders
04
/11
/20
23
54
BANK GUARANTEE – CHECK LISTPG shall be in the
form of irrevocable BG
issued by nationalised or
scheduled bank – 5% of the contract
value. FDR can also be accepted.
Bank Guarantee compared scrupulously with the standard pro
forma given by Railway Board
Should be issued by Scheduled Bank only
Is executed on stamp paper of proper value
( In AP- Rs.100)
04
/11
/20
23
55
CONSIDERATION OF TENDER BY TC
Sanction of estimate Procedure of invitation and opening Validity of tender Eligibility of tenderers Technical credentials Financial capability Manpower availability Workload – Details of Assets Litigation History Special conditions by tenderers Reasonableness of rates
04
/11
/20
23
56
REASONABLENESS OF RATES
Average of recent accepted rates Market conditions Quantum of work Site conditions Nature of work Period of completion Idle capacity of contractors Law & Order situation Competition Timing of tender
04
/11
/20
23
57
RECOMMENDATIONS OF TC
Acceptance (unconditional or conditional) Negotiations
Not as a rule only when substantial financial gains are
expected With lowest tenderer only Within period of validity Only with the authorised person
Discharge Ring formation Insufficient response Exceptional high rates Special conditions Unacceptable tender documents Major modifications proposed
04
/11
/20
23
58
RECOMMENDATIONS OF TC
All pages and correction to be signed by all members
Dissent should be within the minutes No recording of notes or cross notes
on file Avoid subordinate staff Retendering if L1 withdraws before
tender finalisation (CVC guidelines) Counter Offers In case of R&C Tenders
Opportunity for defaulting contractorTenability of R&C Tender
04
/11
/20
23
59
ACCEPTANCE OF TENDER
AA has full powers to accept, modify or reject the recommendations of TC
Normally case not to be sent back to TC for reconsideration
AA should record reasons if recommendations are not accepeted
Acceptance shall be recorded on the body of the TC minutes itself
04
/11
/20
23
60
04
/11
/20
23
61
04
/11
/20
23
62
TENDERS AND CONTRACTS
A VIGILANCE PERSPECTIVE
04
/11
/20
23
63
ANALYTICAL STUDY OF VIGILANCE CASES
PERCENTAGE VIGILANCE CASES ASPECT WISE
Selections, Appointments&
Promotions17%
Purchases17%
Others32%
Award of Tenders & Contracts
34%
Award of Tenders &Contracts
Selections,Appointments &PromotionsPurchases
Others
(34%)
(17%)
(17%)
(32%)
04
/11
/20
23
64
BASIC ISSUES IN A TENDER Whether the work was necessary? Whether it was essential to get the work
through contractual agency? In other words whether the work could have been done within existing resources?
Favouritism High Rates – or combination of both.
04
/11
/20
23
65
COMMON ALLEGATIONS IN TENDERS AND CONTRACTS
Favoritism i.e. Award of contract to favoured firm bypassing more deserving lower tenderer/s on flimsy groundsAward of contract at exorbitant ratesExecution of Substandard workAcceptance of Substandard SuppliesOverpayment / Payment of work not doneFailure to Carryout out Quality CheckMisappropriation of material by contractor in connivance with officials
04
/11
/20
23
66
TYPE OF TENDERS AND THEIR COMMON IRREGULARITIES
1. OPEN TENDERS
Most Widely Publicized in prescribed form Any individual or firm can participate in the Open Tender Basic Requirement - Free and Fair Competition Tender should Normally be awarded to Lowest Suitable
Tenderer
04
/11
/20
23
67
COMMON IRREGULARITIES (OPEN TENDER)
Inadequate Notice Inadequate Time available for participation Inadequate Publicity Late availability of Tender Form, Drawing etc. Tender Box not available in advance Issue of tender form denied on the pretext of non
fulfillment of eligibility criteria
04
/11
/20
23
68
2. LIMITED TENDER Tender Notice issued to selected firms Firms short listed in advance, based on past
experience, expertise, and specialization List of selected firms require finance
concurrence and competent authority's approval Proof of Service necessary
04
/11
/20
23
69
COMMON IRREGULARITIES(LIMITED TENDER)
Arbitrary selection of firms Firms with better experience ignored and firms with
dubious credential selected Inadequate time given for participation in tender Tender Notice not sent to all the firms Bogus firms selected to inflate the number Rates becomes very important as the competition
has been restricted
04
/11
/20
23
70
3. SINGLE TENDER Tender is invited from single pre- selected
bidder of proven capacity Used in emergencies and exceptional cases Where other tender routes can not be followed
due to exigencies of given situation When item is propriety item or only one firm is
capable of doing the work
04
/11
/20
23
71
COMMON IRREGULARITIES (SINGLE TENDER)
Projecting undue/ artificial urgency Selecting unsuitable tenderer based on
exaggerated credentials, ignoring his past failures
Accepting exorbitant rates on the grounds of urgency then merrily giving extensions with token penalty or without penalty
04
/11
/20
23
72
IRREGULARITIES IN GENERAL Twisting, Suppression, exaggeration,
Manipulation, and Half truth by TC to1. Depict better placed bidder as unsuitable or
less suitable2. Exaggerating track record of favourite bidder 3. Suppression/ down playing his past failures4. Exaggerating past failures of his main rival
Contd.
04
/11
/20
23
73
IRREGULARITIES IN GENERAL
5. Ignoring/Suppressing otherwise satisfactory credentials of main rival
6. Projecting the lowest rates of main rival as ‘unworkable’ on the basis of exaggerated estimated cost
7. Projecting undue/ artificial urgency and than bypassing lowest offer on the ground that agency has some other works on hand
8. Manipulating technical aspect to reject inconvenient bids on artificial grounds.
Contd.
04
/11
/20
23
74
IRREGULARITIES IN GENERAL
9. Considering tender on extraneous conditions not included in the tender
10.Falsely Certifying that the quality of product/ material offered by favourite firm as okay vis-a-vis specifications
11.Deliberately painting the quality of product offered by the better placed bidder as unsuitable
12.Exaggerating capacity/ resources of favourite contractor and downplaying that of his rival (lower bidders)
04
/11
/20
23
75
APPOINTMENT OF CONSULTANT
Consultant appointed or Consultancy contract awarded when absolutely essential.
Awarding consultancy contract in transparent and fair manner.
The consultants role should be well defined as well as payment conditions.
No change of payment conditions after award of contract to the disadvantage to Railway.
The payment made to consultant should be commensurate with the work done by them.
04
/11
/20
23
76
ELIGIBILITY CRITERIA
Eligibility criteria for tendereres is provided in some of the tender to have experienced and resourceful contractors for timely and proper execution of works.
It is observed that at times this eligibility criteria is loosely and selectively applied in various tenders to favour particular firm.
It is expected that eligibility criteria is applied in true spirit and uniformly keeping basic objective in mind.
It should not to be used as a tool to eliminate unfavourable lower bidders.
04
/11
/20
23
77
RING FORMATION Ring/ Cartel formation among the bidders leads to
elimination of competition and award of contract at exorbitant rates.
At times it is done with active collusion with officers concerned.
The ring formation becomes more important in case of limited tenders thus an attempt should be made to identify sister concerns.
In case of suspected ring formation with high rates, tender cancellation is advisable
04
/11
/20
23
78
AWARD OF TENDER AT EXORBITANT RATES
Due to high pitching estimates. Tenderers are guided by estimated cost given in NIT and
often estimated cost are used to assess reasonability of rates.
Picking up ‘Comparable rates’ selectively. Preparing rate analysis after the opening of tender to
justify the high rates received. Unrealistic short completion period may lead to high
rate.
Contd.
04
/11
/20
23
79
AWARD OF TENDER AT EXORBITANT RATES
By assuming unreasonably high rates towards transportation cost, labour cost, local taxes, inflation etc.
Modifying description of items to make them Non-Stock items in case Of Stores and Non-Schedule item in case works items leading to purchase/ execution of works at high rate.
04
/11
/20
23
80
POINTS TO BE KEPT IN MIND Tender opening register must be maintained in
which rates and special conditions quoted by tenderers are recorded.
This must be signed by tenderers present at the time of opening.
Delayed tenders i.e. received between closing of box and opening of tender to be opened by tender opening officials and marked distinctly.
Contd.
04
/11
/20
23
81
POINTS TO BE KEPT IN MIND Late tenders i.e. received after opening of tender -
to be opened by executive and marked distinctly. Under no circumstances no member of TC should
refer the case to any officer/staff under him for scrutiny / comments.
Contd.
04
/11
/20
23
82
POINTS TO BE KEPT IN MIND Rate register should be maintained religiously in which
accepted rates are recorded chronologically and any adverse remark regarding their non-comparability should also be recorded.
The register can be referred to see that the rates LAR taken in briefing note are representative
04
/11
/20
23
83
EXECUTION OF CONTRACTFailure to incorporate accepted tender conditions in contract agreement
Introduction of condition having financial implications
Change in specifications during execution
Altering the location or nature of work giving undue advantage to tenderer
contd.
04
/11
/20
23
84
EXECUTION OF CONTRACTUnreasonable Variations in terms of Quantity ItemsIntroduction of New Non Schedule Items
Transportations from much higher lead than intended in tender
Acceptance of material of inferior brand then specified in Contract Agreement
04
/11
/20
23
85
OVER PAYMENTTemporary overpayment in Running Bills
Payment in anticipation of work to be done or supply to made
Final overpaymentPayment for the services not rendered
Inflated measurementMultiple measurement
04
/11
/20
23
86
EXECUTION OF SUBSTANDARD WORK
Acceptance of under specification work or supply
Not following laid down procedure
By passing certain processesNot conducting requisite testsUse of un passed raw materials
04
/11
/20
23
87
04
/11
/20
23
88
LATEST GUIDELINES ON TENDERS
No Risk and Cost Tenders
SD shall be 5% of the contract value and shall be recovered from runnng bills only @ 10%. BG, FDRs etc are not to be considered
PG shall be in the form of irrevocable BG issued by nationalised or scheduled bank – 5% of the contract value. FDR can also be accepted.
PG shall be furnished by the successful contractor within 15 days from the date of issue of acceptance letter & before the signing of the contract and valid upto expiry of the maintenance period
Clause on Conservancy Charges
20% Limitation clause on claims amount (for referring to arbitration) should be kept in BOLD letters.
04
/11
/20
23
89
04
/11
/20
23
90
THANK YOU