Tendering

1. B L Sahu.
SO/G(TG&M)

2. OBJECTIVES OF A TENDER
SYSTEM
TENDER PRE-REQUISITES
DIFFERENT MODES OF
TENDERING.
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Directorate of Contracts and Materials Management

3.  Tenders must be invited in the most
transparent and public manner possible.
 The process of tendering is the most
important aspect in framing of contract.
 The publication of tender, mode of invitation of
tender, sale of tender document, acceptance of
tender document and opening of tender
documents shall be carried out as per the
procedures laid down in the General Conditions
of Contract & Construction Management Manual
duly approved by the competent authority.

4.  Economy
 Efficiency;
 Fairness;
 Reliability;
 Transparency;
 Accountability and Ethical Standards.
 Equal opportunity
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
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5.  Give the owner best value for money
.value may imply more than just
price, for example, quality, delivery,
etc.
 Lowest initial price may not equate to
lowest cost over the operating life of
the item procured. for example AC
packages installation cost
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
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6.  Simple and swift, producing
positive results without protracted
delays.
 Practicality, especially in terms of
compatibility with the
administrative resources and
professional capabilities of its
dealing personnel.
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
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7.  Impartial, consistent, and therefore
reliable.
 Offers all interested contractors, suppliers
and consultants a level playing field.
 Results in increased participation and
hence directly expands the Owners’s
options and opportunities.
Directorate of Contracts and Materials Management
NUCLEAR POWER CORPORATION OF INDIA LIMITED
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8.  Maintains rules and procedures that are
accessible and unambiguous.
 Not only fair, but should be seen to be fair.
 Achieved through effective advertising, public
bid opening, objective evaluation criteria,
award to the lowest qualified bidder .
Directorate of Contracts and Materials Management
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9. Accountability and Ethical Standards.
& Equal opportunity
 INFUSE HEALTHY COMPETITION AMONGST
PROSPECTIVE SUPPLIERS/CONTRACTORS TO
ACHIEVE ABOVE OBJECTIVE.
 PROVIDE FOR LEVEL PLAYING FIELD FOR INTERESTED
BIDDERS (ART. 14 OF CONSTITUTION
FUNDAMENTAL RIGHTS – RIGHT TO EQUALITY.
 ARTICLE SAYS “THE STATE SHALL NOT DENY TO ANY
PERSON EQUALITY BEFORE THE LAW OR EQUAL
PROTECTION OF THE LAWS WITHIN THE TERRITORY
.OF INDIA”)
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Directorate of Contracts and Materials Management

10.  ADOPT METHOD OF SELECTION OF
CONTRACTOR WHICH IS FAIR TO ALL THE
SUPPLIERS/CONTRACTORS PARTICULARLY
WHERE COMPETITION IS INVOLVED.
 ADHERENCE TO ACCOUNTABILITY AND
ETHICAL STANDARDS
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Directorate of Contracts and Materials Management

11. Public Tender
Two Part Tender
Limited Tender
Single Tender
Nomination/without call of
Tender

12. TYPE OF TENDERS
1. PUBLIC TENDER
Normally in all cases Public Tender are to be invited.
Where it becomes essential to dispense with public
tender, same shall be done in accordance with powers
delegated in DFP for works.
Single Part Tender: Normally in all cases where the
estimated cost is less than Rs.600 lakhs the tender shall
be call in single part .
Two Part Tender: Tender for works costing more than Rs.
600 lakhs should be called in two parts. In case of
works of specialized nature below 600 lakhs also, two
part tender can be called with prior approval of
competent authority.

13. Tender to be split in 2 parts as follows:
i. Part I-(Technical bid): All tender documents along
with the conditions stipulated by the tenderer except
price schedule and financial conditions.
ii. Part II-(Commercial bid): Containing the price
schedule of quantities and rates.
iii. The tenderer shall submit their tender in two parts in
two separate sealed envelopes.
iv. Part I shall be opened first and technical capability
and financial implications shall be evaluated. Part II
of the tenders of those who technically qualified only
will be opened.

14. 2. LIMITED TENDER
Limited tenders from registered / pre-qualified contractors can be called
for on the following grounds:
i. The work is required to be executed within limited period of time.
Limited tender is to be issued to those parties who have registered
themselves with NPCIL/DAE/CPWD/NTPC/RAILWAYS ETC. Limited
tender shall also be called from the parties who are pre-qualified /
short listed and approved by competent authority in NPCIL.
ii. Where the work is of special nature.
iii. Where the work is of secret nature and public announcement is not
desirable.
While calling limited tenders it is to be ensured that:
a) Minimum 5 parties, who are technically and financially competent, are
identified and tenders are issued to them.
b) Where number of parties available are less than 5, the prior approval of
competent authority is required.
During evaluation of the offers received from the selected parties, the
technical competency in terms of resource, etc shall not be assessed for
acceptance/ rejection of the offer.

15. 3. SINGLE TENDER
On approval by competent authority, single tender can be called in
any of the following cases:
a) Work of proprietary nature .
b) There is only one source of Supply/Contractor.
c) Replacements and addition to existing equipment/structure is
of a proprietary nature.
d) Work requiring equipment, plant or process for which only one
party has been developed by DAE/NPCIL and that is only
source available.
e) Shutdown work / emergency work where normal course of
tendering process will have an effect on overall plant
performance / construction schedule.
f) Work of inescapable urgency which can directly effect the
commissioning of the Power Plant and the party has already
established equipments and necessary infrastructure at the
project site.
Note : Limited tender resulting in only one effective technically
acceptable offer shall be treated as a single tender for exercising

16. 4. AWARD OF WORK ON NEGOTIATION / NOMINATION/ WITHOUT
CALL OF TENDER
The cases where conditions for call of single tender are not
satisfied, the call of tender from one party will be regarded as
Negotiated / Nomination / Without call of tender.
Estimate for the work is to be prepared and got approved from
competent authority.
Half yearly MIS on award of work on nomination is to be submitted
to SD/PD/ED with the copy to the concerned Finance Head.
5. EXECUTION OF DEPOSIT WORKS
The officers of NPC have been empowered to undertake
deposit works only on authorization by the CMD. The deposit
work may be accepted by the Corporation to utilize the spare
capacity and should not in any way affect the Corporation's
works.

17.  ORIGINAL WORKS
 REPAIR WORKS
 PETTY WORKS
 DEPOSIT WORKS
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18.  Comprise of all new construction, fabrication,
erection and commissioning of a system or
 Additions and alterations to existing works or
 Special repairs of newly purchased or previously
abandoned buildings/ structures required for
bringing them into use.
 Any replacement / remodeling where the cost
of the change represents a genuine increase
in the value of the property
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19.  includes primarily operations undertaken for
maintenance in proper condition of buildings
/ systems / roads and works in ordinary use.
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20.  The expenditure on minor additions or
alterations to buildings, roads and plant &
machinery etc., where estimated cost is not
exceeding Rs.50,000/- (as per existing DFP)
will be termed as petty work.
 The award as well as deviations / quantity
variations up to 100% shall be approved by
PD/SD/ED provided the proposal has been
reviewed by 2 Engineers of the relevant
section.
 No financial concurrence necessary.
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21.  The works of construction or repairs where the
cost is financed by other public bodies.
1. The works executed for NPCIL by other public bodies
were the corporation’s funds is deposited with other
public bodies.
2. The works executed by NPCIL for other public bodies
were funds are deposited with NPCIL by other public
bodies
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 Delegation of Financial Powers for award of
 Works, Service & Maintenance Contracts
 Purchase & Service Contracts
 Consultancy Contracts
 Administrative matters & Office Expenses
Order has been issued in form of Head Quarter
Instructions (HQIs) duly approved by Board.
These HQIs also consists detailed provision/
controls to be followed/exercised by various
executives while exercising the financial powers from
time to time in respect of Contracts.

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 HQI 2001 dt. 17.12.1997 -
DFP with provisions for Works, Service & Maint.,
Contracts - Red Book
 HQI 2007 dt. 1.11.1998 -
DFP with provisions for Purchase & Service
Contracts - Blue Book
 HQI 2011 dt.1.5.2001 -
DFP with provisions for Consultancy Contracts
- Green Book
 HQI 2012 dt.1.5.2001 -
DFP with provisions for Administrative & Office
Exp., - Yellow Book

24. TYPES OF CONTRACT
The contracts can be mainly classified as under :
1. LUMP SUM CONTRACT - As its name indicates, is used
for work in which tenderers are required to quote a lump
sum figure for completing works in accordance with the
given designs, drawings, specification and functional
requirements, as the case may be.
Lump sum contract can be either for only executing the
work as per given design, drawing and specification or it
may include element of doing design work and
preparation of structural drawings etc. Payment
schedule for various interim milestones is to be included
along with the tender by the tenderer.
2. ITEM RATE CONTRACT - Tenderers are required to quote
rate for individual items of work on the basis of schedule
of quantities furnished by the Corporation.

25. 2. COST PLUS CONTRACT – A contract wherein the price
payable for supplies or services under the contract is
determined on the basis of the actual cost of production of
the supplies or services rendered plus profit either at a fixed
rate or unit or at a fixed percentage on the actual cost of
production.
3. PERCENTAGE RATE CONTRACT - The bidders are asked to
quote the percentage above/below the estimated amount
given in the tender.
4. BUILT OPERATE/LEASE TRANSFER (BOT/BOLT) - Built
Operate/leaseTransfer (BOT) is a form of contract, wherein a
private entity receives a contract to finance, design,
construct, and operate a facility stated in the contract over a
period on agreed terms & conditions and transfer the facility
back to the Owner/Department. This enables the contractor
to recover its investment, operating and maintenance
expenses in the project over a period before transferring the
facility back to the Owner/Department.

26. COMPARISON OF SINGLE BID TENDER - V/S - TWO BID TENDER
Sr.
No
.
Description Single Bid
Tender
Two Bid
Tender
1. Estimated Cost ceiling Up to 600 lakhs Above 600 lakhs / special
cases
2. Preparation of tender
document
In one part
(Section I to VIII)
In two part
Technical Bid (Section I to VII)
&
Commercial Bid (Section-VIII)
3. Submission of tender Together Together but in separate
envelops
4. Opening of tender Together Separately for Technical bid
& commercial bid.
5. Technical evaluation After opening of
tender
After opening of Technical Bid
but before opening of
commercial bid.
6. Pre Bid Meeting Not required Required
7. Amount of Bid Security Same for Single Bid & Two Bid tender
8. Security Deposit Same for Single Bid & Two Bid tender

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