PART-II / CHAPTER III

CONSTITUTION OF TENDER COMMITTEES

3.1 In the case of Tenders valued Rs.3 lakhs and over for the purchase of stores arranged by the Controller of Stores, a Tender Committee to consider the tenders should be constituted by the authority competent to accept the tenders. Authority: Board's letter No.83/F(S)I/PW-7/1 of 15.02.89 (Annexure II/3-14) No. 85 /F(S)I/PW-7/1 of 19.11.1997 (Annexure II/3-26) 3.2 The Tender Committee will have to be so constituted that officer holding power by virtue of his position as a member of the tender committee should not be the accepting authority also in such cases (Board's letter No.70/WI/CT/32 dt. 7/9th September 1970 (Annexure II/3-01). In such cases, the executive member the Tender Committee shall put up the Tender Committee proceedings to the next higher authority for acceptance, notwithstanding the fact that the value of the offer is within the powers of that executive member of the Tender Committee. 3.3 The association of the Accounts Officers in deviation in Tender Committees is with a view to ensuring that the financial interests of the organisation are not sight of by the committee in its deliberations. The Accounts Officer is also expected to advise and ensure that various codal provisions/rules/regulations are being complied with and that any this regard is suitably advised, appropriate sanction bearing an overall management interest. The Accounts officer being an independent person is expected to look at the transactions in a dispassionate and objective manner. While the role of Accounts Officers in tender committees, auctions, etc., as outlined above, is well known, yet they should give due importance to their responsibility. Authority: Board's letter No.74/AC.III/30/6 dated 29th June 1978(Annexure II/3-02) 3.4 Preparation of T.C. Minutes: - After the Tenders are opened, a detailed comparison statement should be prepared by the Stores Department and vetted by Accounts Department. The convenor of Tender Committee (Stores Member) has to fix the date in consultation with other Members for holding meetings. The T.C. Members must hold meetings and arrive at their recommendations. The minutes should be drafted by the convenor and any significant changes in the minutes should be done jointly by the T.C. Members. Noting on the Tender file by the T.C. Members as a substitute for the meetings should be strictly avoided .The Members of the Tender Committee are expected to have adequate knowledge and confidence to deal with the tender without referring the case to others working under them for scrutiny and comments. The Tender Committee should be drawn up by the T.C. Members. Preparation of T.C. Minutes by clerks is objectionable, although their assistance may be taken in dealing with the tenders. Complete records should be maintained on the file and secrecy of the tender ensured.

3.4.1 The independent committee of expert set up by the Railway Board in Feb. 91 as recommended by the Public Accounts Committee (8th Lok Sabha) for investigating inconsistencies and irregularities in case of purchases has recommended that evaluation of tender, preparation of briefing notes, etc, need to be done with greater care and attention .The tender committee Member should carefully scrutinise the offers atleast of the bidder recommended for award of contract. Utmost care should be taken to examine all technical as well commercial aspects especially technical deviations quoted by the tenderer. Authority: Board's letter No.84/RSG/771/1 of 23.02.1984 (Annexure II/3-08 ) No. 84/RSG/771/1 of 14.04.1984 (Annexure II/3-09) 87/RS(G)/77/3 of 06.11.1987 (Annexure II/3-13 ) & 93/RS(G)/645/1/PAC-165 of 11.03.1993 (Annexure II/3-22) 3.5 Powers of purchase:- The powers of purchase of Controller of Stores in various types of cases and the limits up to which they can be delegated to Lower Officers will be in accordance with the Board's letter No.70-F(S)/I/PW/1 dated 6th March 1979 (Annexure II/115) as modified vide letter No. 66-RS(G) / 777 dated 15th December 1979 (Annexure II/3-04) , 70-F(S)/1/PW-7/1 dated 5th May 1980(Annexure II/3-05) 83/F(S)/1/PW-7/1 dated 4th April 1983 (Annexure II/1-21) 83/F(S)/1/PW-7/1 dated 23.01.1984 (Annexure II/3-07) 83/F(S)/1/PW-7/1 dated 09.07.1984 (Annexure II/1-23 ) 85/F(S)/I/PW-7/1 of 24.02.1993 ( Annexure II/3-21), 86/F(S)/I/PW-7/2 of 13.09.1994 (Annexure II/3-23) & 85/F(S)/I/PW-7/1 of 19.11.1997 (Annexure II/3-26) 3.5.1 The powers to approve quantities proposed to for purchases / indents, powers to sit on Tender Committees in terms of value of tenders powers to accept tenders in terms of value of tenders will be in terms of Board's letter Nos.70-F(S)I/PW-7/1 dated 6th March 1979 (Annexure II/1-15) as modified in letter No.70-F(S)I/ PW-7/1, dated 4th December 1979 (Annexure II/3-03) 66-RS(G)777 dated 15th December 1979 (Annexure II/3-04) 70-F(S) I/PW-7/1 dated 5th May 80 (Annexure II/3-05) 83/F(S)/I/ PW-7/1 dated 4th April 1983 (Annexure II/1-21) 85/F(S)/ I/PW/7/1 dated 27.05.1987 (Annexure II/3-11) 83/F(S)I/PW-7/1 of 23.01.1984 (Annexure II/3-07), 83/F(S)1/PW-7/1 of 09.07.1984 (Annexure II/1-23) 83/F(S)1/PW-7/1 of 25.07.1987(Annexure II/3-11) 83/F(S)/1/PW-7/1 of 17.12.1993 (Annexure II/1-49) 83/F(S)/1/PW-7/1 of 02.03.1994(Annexure II/1-50) 85/F(S)/1/PW-7/1 of 19.11.1997 (Annexure II/3-26 )& 85/F(S)/1/PW-7/1 22.12.1997 (Annexure II/3-27) 3. 5. 2 Consequent on the abolition of G.O.I. stationery offices, the normal purchase powers will be applicable to stationary items also as advised vide Boards letter No.87/RS(G)/ 779/27 dated 30.12.1987 (Annexure II/1-27). 3. 5. 3 It may be noted that: i) The total value of the tender will be the criterion to decide the competent authority for acceptance whether purchase proposals against the tender are put up in parts.

ii) Stores Member of the Tender Committee will put up the paper direct to the accepting authority. iii) All purchase proposals valued over Rs.8 crores are to be submitted to Railway Board for obtaining approval of the Minister for Railways. Authority: Bds letter No. 70/F(S)I/PW-7/1 of 04.12.1979 (Annexure II/3-03) 66/RS(G)/777 of 15.12.1979 (Annexure II/3-04), 70/F(S)I/PW-7/1 of 05.05.1980 (Annexure II/3-05), 70/F(S)I/PW-7/1 of 06.03.1979 (Annexure II/1-15), 83/F(S)/I/PW-7/1 of 04.04.1983 (Annexure II/1-21), 83/F(S)/I/PW-7/1 of 07.01.1984 (Annexure II/3-06), 83/F(S)/I/PW-7/1 of 15.02.1989 (Annexure II/3-14) 85/F(S)/I/PW-7/1 27.05.1987 (Annexure II/3-11) F(X)II/86/PW-6 of 28.04.1987 (Annexure II/3-10) F(X)II/94/PW/3 of 08.11.1995 (Annexure II/3-24) F(X)II/94/PW3 Pt .VII of 03.09.1997 (Annexure II/3-25) and SP/98/4100(Policy) of 15.01.1998 (Annexure II/3-28) iv) The value of purchase against import contracts should be as CIF for determining the level of the Tender Committee and the approving authority, as advised vide Board's letter No. 87/RS(G)772/2 dated 20.08.1987 ( Annexure II/3-12) and F(X)II/94/PW/3 of 13.12.1991 (Annexure II/3-19) V) The level of the Tender Committee to consider the tendered offer will be decided based on the lowest acceptable offer as per the technical note in cases where the lowest offer (S) as received is / are unacceptable on technical consideration. Authority: Board's letter No.85/F(S)I/PW/1 dated 28.02.1990 (Annexure II/3-16) (VI) The quantities of excise duty, sales tax and option clause should not be included in the value of tender for determining competency of the acceptance. This supersedes the previous instructions issued regarding including the value of duties and taxes for determining the level of competence. However while evaluating various offers excise duty, sales tax and freight should be taken into account. Authority: Board's letter No. F(X)II/91/PW/III dated 20.02.1992 (Annexure II/3-19) No. F(X)II/91/PW/III dated 10.05.1991 (Annexure II/3-17) & No. F(X)II/91/PW/III dated 13.12.1991(Annexure II/3-18) (VII) In Railway organisations including Production units, where only one SAG officer is in stores department in Particular in, the stores member will be the JA grade officer tender valued upto Rs.50 lakhs. Authority: Board's letter No.85/FSI/PW/7/1 of 29.12.1989 (Annexure II/3-15) and No. 92/F(FEX)1/1 of 28.05.1992 (Annexure II/3-20) 3.5.4 In the case of imports valuing more than Rs.2 crores, the Tender Committee recommendations duly approved by GM should be submitted to the Railway Board for finance approval. Authority: Board 's letter No.85/F(S)I/PW/7/1 dated 29.12.1989-(Annexure II/3-15) No. 92/F(FEX)1/1 of 28.05.1992/01.06.1992 (Annexure II/3-20)

ANNEXURE II/3-01 Copy of Board's letter No. 70/WI/CT/32 dated 7th / 9th September 1970 addressed to General Manager, Northern Railway with copy to General Managers of other Railways. Sub: Constitution of Tender Committee for consideration of Tenders It has come to the notice of the Railway Board that the constitution of the Tender Committee for consideration for works of your Railway at the Divisional level, comprise of Officers who are also delegated with powers for accepting such tenders. The Board feel that the Officer holding powers as the recommending authority by virtue of his position as a member of the Tender Committee being also the accepting authority for such tenders is not proper and desirable. It is, therefore, desired that for works of any magnitude pertaining to any Department, the Tender Committee to consider tenders may be so constituted that an authority holding powers for recommending the tenders by virtue of his position as a member of the Tender Committee, shall not be the accepting authority also for such tenders. Suitable amendments may accordingly be made to the Constitution of the Tender Committee.

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ANNEXURE II/3-02 Copy of letter No.74 A. C. III/30/6 dated 29th June 1978 from Joint Director, Finance (A), Railway Board, New Delhi, to General Managers, All Indian Railways and 1. C. F. Sub: Recommendation No. 275 of Task Force Report on Vigilance-Association of Accounts Representatives with Tender Committees It has been laid down in Para 341 of Stores Code that whenever practicable and convenient, a Tender Committee with the Accounts Officer as a member should be formed for opening and acceptance of tenders. In cases where, Tender Committees are not formally, constituted the advice of the Accounts Officer should be obtained in considering tenders involving Rs. 10,000 or more and where it is not practicable to obtain such advice at the time of considering the tenders, it should be sought immediately thereafter. 2. The association of Accounts Officers in Tender Committees is with a view to ensuring that the financial interests of the organisation are not lost sight of by the Committee in its deliberations. The Accounts Officer is also expected to advise and ensure that various codal provisions rules/regulations are being complied with and that any deviation in this regard is suitably advised for appropriate sanction bearing an overall management interest. The Accounts Officer being an independent person is expected to look at the transactions in a dispassionate and objective manner. While the role of Accounts Officers in Tender Committees, auctions etc, as outlined above is well known, the responsibility of the Accounts Department is being reiterated so that the various Accounts Officers entrusted with the responsibility of tendering advice in respect of various financial matters are fully guided and give this responsibility its due importance. 3. The receipt of the letter may please be acknowledged.

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ANNEXURE II/3-03 Copy of letter NO. 70/F(S)I/PW-7/I dated 4th December 1979 received from Shri A. C. Mendiratta, Dy. Director Finance (Stores) addressed to General Managers All Indian Railways I.C. F. etc. Subject: Enhancement of powers of Controller of Stores In terms of column 3 of Statement II to Board's letter of even No dated 6th March 1979 as amended vide letter of same number dated 11 th June 1979, the A. C. O. S. has powers to accept tenders, in terms of value of tenders upto Rs. 10, 000/- for each item. The matter has been reconsidered by the Board and it has been decided that the above limit of A. C. O. S. may be enhanced from the existing "upto Rs. 10,000 to " upto Rs. 15,000 " depending on local conditions.

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ANNEXURE II/3-04 Copy of letter No. 66 RS(G)/777 dated 15th December 1979 from A. K. Malhotra, Jt. Director, Railway Stores (IC), Railway Board, New Delhi, addressed to the General Manager, All Indian Railways/Production units , MTP Railways, Calcutta, Wheels and Axles Plant, Banglore. Subject: Constitution of T. C. and authority competent to accept purchases on Zonal Railways / Production Units In the last 38th C. O. Ss' Conference with the Railway Board held on 19th and 20 th September 1979 Committee of C.O.Ss had suggested that for streamlining purchase procedures, the Tender Committee levels may be revised in the present context of all round increase in work. The Ministry of Railways have examined the matter and have decided that in modification of earlier instructions communicated in letter number 70/F(S)/I/PW-7/1 dated 6th March 1979, the T. C. consisting of Officers indicated in the attached statement should be constituted for considering tenders, for procurement of various types of stores, floated by the Stores Department of Zonal Railways/Production Units. It has been decided that powers of acceptance of tenders notified in this Ministry's letter number 70 (S)I/PW-7/1 dated 6th March 1979 will remain unchanged and the stores member of the Tender Commit will put up papers direct to the competent authority for acceptance of tenders. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

TENDER COMMITTEES ON RAILWAYS/ PRODUCTION UNITS IN RESPECT OF PURCHASES HANDLED BY STORES DEPARTMENT

Composition of Tender Committee

Value of Tender Rs. 50,000 to Rs. 3 lakhs. Above Rs. 3 lakhs and upto Rs. 10 lakhs Stores Deptt. Consuming Deptt. Senior scale Officer. Junior Administrative Officer Addl. Head of Deptt. Head of Deptt. Head of Deptt. Finance Representative Assistant Accounts Officer Senior Accounts Officer Dy. C. A. O. Addl. F.A.& C.A.O. F.A.& C.A.O. Accepting Authority

Senior scale Officer. Junior Administrative Officer Above Rs. 10 lakhs and Addl. Head of upto Rs. 25 lakhs Deptt. Above Rs. 25 lakhs and Head of Deptt. upto Rs. 50 lakhs Above Rs. 50 lakhs Head of Deptt. Note: -

* Dy. C.O.S.
Addl. C.O.S. ** Addl. C.O.S. C.O.S. G. M. G. M. G. M.

(1) The total value of a tender will be the criterion to decide the Competent Authority for acceptance where purchase proposals against the tender are put up in parts. (2) Stores member of the Tender Committee will put up tile papers direct to the accepting authority. (3) All purchase proposals valued over Rs. 1 crore are to be submitted to Railway Board for obtaining the approval of Minister of Railways. * Dy. C. O. S. (Upto Rs. 2 lakhs) , Addl. C. O. S. (above Rs. 2 lakhs & upto Rs. 3 lakhs). ** Addl. C. O. S. (above Rs. 3 lakhs & upto Rs. 5 lakhs), C. O. S. (above Rs. 5 lakhs & upto Rs. 10 lakhs).

ANNEXURE II/3-05 Copy of letter No. 70F(S)I-PW-7/1 dated 5 th May 1980 received from Shri A. C. Mendiratta DY. Director, Finance(Stores), Railway Board ,New Delhi, addressed to General Managers, All Zonal Railways/Production Units and others. Subject: Enhancement of powers of Controllers of Stores Please substitute: (i) the words " To be constituted when value of tender is Rs. 75,000 and above " in place of " No change " appearing under Column (3) " Powers as enhanced " against item No. VI viz. : Constitution of Tender Committees of Statement I sent with his Ministry's letter of even number dated 6th March 1979 ; and (ii) the figure " Rs. 75,000 " in place of. " Rs. 50,000 " appearing against " D.C.O.S." in column 2 of Statement II sent with this Ministry's letter quoted above.

Sd/(A .C. MENDIRATTA) Dy. Director, Finance (Stores) Railway Board

ANNEXURE II/3-06 Copy of Board's letter No. 83/F (S)I/PW-7/1 dated 7th January 1984 addressed to General Manager, All Indian Railways and others. Subject: Enhancement In the powers of purchase in Stores matters Further to their letter No. 83/F (S)/1/PW-7/1 dated 4th April 1983, the Board have decided that the financial limit for constitution of Tender Committees may be raised from Rs 75,000 to Rs. 1 lakh.

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ANNEXURE II/3-07 Copy of Boards letter No. 83/F (S) I/PW-7/1 of 23rd January 1984 addressed to General Managers All Indian Railways and others. Sub: Enhancement in the power of powers of purchase in Stores matters and Authority Competent to accept purchase on Zonal Railways/ Production Units. The Ministry of Railways have examined the powers of acceptance in Stores Tenders and have decided that in modification of their earlier instructions communicated in letter No. 79/F(S)I/PW-7/1 dated 6th March 1979, the powers to accept Tenders in terms of value of Tender may be raised as follows:Level (i) A. C. O. S. (ii) S. S. O. (iii) Dy. C. O. S. (iv) Addl. C. O. S. (v) C. O. S./ C. M. M. Existing limit Rs. 10,000 25,000 2,00,000 5,00,000 10,00,000 Revised limit Rs. 15,000 50,000 3,00,000 10,00,000 25,00,000

2. The Addl. General Manager will be the accepting Authority for all Tenders beyond Rs. 25 lakhs and up to Rs. One crore. The Tenders beyond Rs. One crore up to Rs. Two Crores should be submitted to the General Manager and his powers may not be redelegated. All cases where the value exceeds Rs. Two Crores should be submitted to the Board for obtaining competent approval 3. However, where the appropriate designations do not exist the powers are to be exercised by the next higher functionary e.g. if there is no Addl. C. O. S. on a Railway, the powers will be exercised by the Controller of Stores/Chief Material Manager. 4. So for as the composition of the Tender Committees is concerned the orders communicated in Boards letter No. 66/RS (G)/777 dated 15th December 1979 will continue to remain valid, excepting that Tender Committees will be constituted for purchases of above Rs. One Lakh only as already communicated in terms of Boards letter of even number dated 7th November 1984.

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ANNEXURE II/3-08 Copy of Boards letter No. 84/ RS (G)/771/1 dated 23 rd February 1984 addressed to General Managers A// Indian Railways, Production Units etc., Sub: Irregularities in the award of contract against limited Tenders In a case investigated by the C. B. I. into alleged irregularities in the award of a contract against limited Tender by one of the Zonal Railways, the following lapses came to notice: (i) A paragraph in T. C. Proceedings included" other offers being higher not considered for acceptance which was actually irrelevant since there was no other higher offer available against the Tender. When asked to comment, the Railway stated that normally draft proceedings of the Tender Committee were made by the Clerks and they had included the above phraseology which was not noticed by T. C. Members while signing the T. C. P. (ii) Further it was noted from the records that on two occasions when limited Tenders were issued, the names of the firms to whom Tenders were sent were not available on office copy of the invitation to Tender nor any record thereof was available. 2. As per the normal practice, the members of the Tender Committee meet and draw up the proceedings of the T.C. after the Tenders are opened and scrutinised. Preparation of Tender Committee minutes by clerks is therefore, objectionable. Further non-maintenance of proper records of the names of the firms to whom Tenders have been issued on the files is irregular. 3. The Ministry of Railways have taken a serious view of the irregularities indicated in Para 1 above and desire that instructions may be issued to all concerned for maintaining proper secrecy of Tenders and also complete records on the files. Sd/(S. KRISHNAN) Joint Director Railway Stores (IC) Railway Board

ANNEXURE II/3-09 Copy of Boards letter No. 84/RS (G)/777/ 1 dated 14 th April 1984 addressed to General Managers, All Indian Railways, Production Units etc., Sub: Irregularities in the award of Contract against Limited Tenders Ref: Your letter No. S/G1/222/7 dated 14th March 1984. It is clarified that Boards letter of even number dated 23 rd February 1984 was issued as a result of irregularities pointed out by the C. B. I. in the award of contract by one of the Zonal Railways. The instructions were meant to emphasise the need to draw up the proceedings by the members of the Tender Committee only and not by Clerk/ Subordinate Staff so that the errors pointed out by CBI are not repeated. These instructions, however, do not in any way, preclude the members of the Tender Committee in getting assistance from Subordinate Staff in the Confidential Tender Section as per instructions already issued vide Boards letter No. 78/RS (G)/779/5 dated 30th March 1978. Sd/(JOGINDER SINGH) Dy. Director Railway Stores (G) Railway Board.

ANNEXURE II/3-10 Copy of Board's letter No., F(X) II-86/PW/6 dated 28 th April 1987 from Joint Director, Finance (Exp) L. R. Railway Board to General Managers, All Indian Railways and others. Sub: Delegation of powers to General Managers- Enhancement thereof. Ref: Boards letter no. F(X)II/85/PW/3 dated 27th June l985 The Ministry of Railways have decided that the powers of the General Managers for awarding of contract in Works/stores matters vide item 47 of Annexure II of Chapter V F.8 as corrected vide Advance Correction Slip No. 4 F-I Circulated under Boards letter No. F (X) II/79/PW/4 dated 13th February 1986 may be enhanced to Rs. 5 Crores for each individual contract as against the present limit of Rs. 3 Crores. This has the sanction of the President. *******

ANNEXURE II/3-11 Copy of Boards letter No. 85/F(S) I/PW/7/1 of 27th May 1987 addressed to General Managers All Indian Railways and others. Sub: Constitution of Tender Committee and Authority competent to accept stores purchase on Zonal Railways/Production Units. The Ministry of Railways have examined the powers of acceptance in Stores Tenders and have decided that in modification of the instructions communicated in Boards letter of even number dated 24th July 1985. The constitution of Tender Committee for considering Tenders and powers of acceptance in Tenders for procurement of various types of Stores will be as underTender Committee Value Limit Accepted by Stores Consuming Finance Dept. (1) Rs. 1 lakh to Rs. 5 lakhs J.A.G. Sr. Scale Sr. Scale Jr. Scale (2) Rs. 5 lakhs to Rs. 15 S.A.G. J.A.G J.A.G Sr. Scale lakhs (3) Rs. 15 lakhs to Rs. 30 S.A.G. S.A.G. S.A.G. J.A.G lakhs (4) Rs. 30 lakhs to Rs. 50 S.A.G. S.A.G. S.A.G. S.A.G. lakhs (5) Rs. 50 lakhs to Rs. 1 S.A.G. S.A.G. S.A.G. S.A.G. crore (Coordinating) (c) Rs. 1 crore to Rs. 3 A.G.M. S.A.G. S.A.G. S.A.G. crores (Coordinating) (7) Rs. 3 crores and up to G.M. S.A.G. S.A.G. S.A.G. the limit of General (CoManagers powers ordinating) Note. - In the case of any establishment which does not have A. G. Ms item 6 will not be applicable and item 7 renumbered as 6 will cover Rs. 1 crore and upto the limit of General Managers powers. 2. It may be noted that in the light of the enhanced delegation communicated in Boards letter No. F (X)II-86 PW/6 dated 28th April 1987, all purchase proposals valued over Rs. 5 crores are to be submitted to Railway Board for obtaining approval of the competent authority. 3. It is reiterated that the total value of a Tender will be the criterion to decide the competent authority for acceptance where purchase proposals against the Tender are put up in parts. The Stores Member of the Tender Committee will put up the proceedings direct to the accepting authority.

4. The structure and composition of Tender Committee detailed in para 1 should not be altered locally excepting in an individual case, for reason to be recorded and with the concurrence of F. A. & C. A. O and approval of General Manager. 5. In Railway Administrations including Production Units where there is only one S. A. Grade Officer in the Finance Department, Finance Member of the Tender Committee up to Rs. 50 lakhs may be a J. A. Grade Officer. Similarly in the Stores Department where there is only one S. A. Grade Officer in a particular unit the Stores Member will be a J. A. Grade Officer for Tenders upto Rs. 50 lakhs.

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ANNEXURE II/3-12 Copy of Board's letter No. 87/Rs (G)/772/2 of 20th August 1987 addressed to General Manager (S), South Eastern Railway, Garden Reach Calcutta and others. Sub: Procurement of Imported Stores--Level of Tender Committee and Level of Approving Authority Ref: C.M.M.(G)'s D. O. No. ADMN (P)/S- 189/A/4/ Pt.II/6479 dated 15th May 1987. It is clarified that the value of purchase against import contracts should be taken as C.I.F. for determining the level of Tender Committee and the Approving Authority. This issues with the concurrence of the Finance Directorate of this Ministry. **********

ANNEXURE II/3-13 Copy of Board's letter No. 87/RS (G) 777/3 dated 6th November 1987 addressed to General Manager, All Indian Railways and others. Sub: Procedure for dealing with Tenders by the Tender Committee. Tender Committee have a vital role to play in deciding the action on Tender received for procurement of material and execution of works. In accordance with the extent procedure after the Tenders are opened a detailed comparative statement and a briefing note (in the case of works Tenders) are to be prepared by the Stores/Technical Department and vetted by the Accounts Department. The Convenor of the Tender committee (who has to be from the Department that called the Tenders) has to fix date(s) in consultation with other members for holding meeting(s)for a joint and thorough discussion of the offers received and framing recommendations for the accepting Authority. The recommendations of the Tender Committee are to be put up direct to the accepting Authority, without further recommendations or comments from anyone. 2. It has come to the notice of the Board that in some cases, the above mentioned procedure is not being followed. The Tender Committee members do not meet to deliberate on the offers and to arrive at common recommendations. Instead, the minutes are framed by the convenor or some other member (or even by some officer or staff under them) without any meeting and mutual consultations. These are then sent to the other members of the Tender Committee, who frequently record their views on the files, which are different from the drafted minutes. Also, in some cases, when the minutes drafted after the holding of the Tender Committee meeting are sent to other members for approval/signature, they, in turn refer the entire, case for scrutiny to their junior officers/staff who give their own comments on the Tender file or on a separate check note. Needless to add that such procedure adopted by the members of the Tender Committees are violative of the instructions of the Board and defeat the very purpose of formation of the Tender Committee. This also leads at times to loss of Tender files, manipulations therein loss of confidential and excessive delay in dealing with the Tender. The delay in some cases had led to the validity of the offers having expired and the Railways being compelled to purchase stores or execute works at much higher rates. 3. In view of the foregoing, Board desire that after opening of Tender their tabulations, preparation of detailed comparative statement and briefing note in the case of Tender (which must be vetted by Finance Branch) the convenor should take immediate steps to hold Tender Committee meeting in consultation with the other members. The Tender Committee members must hold meeting (s) to examine the various offers, deliberate upon them and arrive at their recommendations. The minutes should be drafted by the convenor at the earliest thereafter and sent to other members for their approval and signature, Under no circumstances any of the members of the Tender Committee should refer the Tender case to any Officers/Staff under him or to any one else for scrutiny and/or comments. The members of the Tender Committee are expected to have adequate knowledge and confidence to deal with the Tenders on their own instead of referring it to others. Any significant changes in the minutes should be done jointly in consultation with other members. Noting on the Tender file by the members of the Tender Committee as a substitute for meetings and airing the views should be strictly avoided. Dates on which Tender Committee meetings are held should be displayed prominently in the minutes of Tender Committee. All concerns must also ensure

that the Tenders are dealt with expeditiously and within the time schedule laid down by the Railway. 4. Board desire that the above instructions should be followed strictly. 5. This issues with the concurrence of the Finance Directorate of Railway Board.

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ANNEXURE II/3-14 Copy of Board's letter no. 83/F(S)/I/PW-7/1 dated 15th February 1989 from Executive Director, Finance (Stores) Railway Board addressed to General Managers, All Indian Railway's and others. Sub: Constitution of Tender Committee and authority competent to accept stores Purchase on Zonal Railways/Production Units Ref: Boards letter No. 85/F(S)I/PW/7/I dated 27th May 1987. As mentioned in Boards letter No. 83/F (S)/1/PW/7/1 dated 14th February 1989, the existing limit for constitution of Tender Committee has been enhanced from Rs. 1 lakh to Rs. 2 lakhs. Accordingly Ministry of Railways have decided to substitute the value limit of Sr. Scale Officers Tender Committee shown against S.No. 1 to Rs. 2 lakhs to Rs. 5 lakhs in place of Rs. 1 lakh to Rs. 5 lakhs Other guidelines will continue to apply. ************

ANNEXURE II/3-15 Copy of Boards letter No. 85/F (S) I/PW/1 dated 29th December 1989 to addressed to General Managers All Indian Railways, Production Units etc., Sub: Constitution of Tender Committee and Authority Competent to accept, Stores purchase on Zonal Railways/Production Units etc. Reference Boards letter No.85/F (S) I/PW-7/1 dated 27th May 1987 communicating instructions regarding constitution of the Tender Committees, It is clarified that the delegation in respect of import Tenders would be the same as for the indigenous Tender, except that in case of imports valuing more than Rs. 2 Crores, the Tender Committee recommendations duly approved by GM should be submitted to the Railway Board for final approval. Sd/(AJIT CHANDRA) Executive Director Finance Railway Board

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ANNEXURE II/3-16 Copy of Boards letter No. 85/F (S) I/PW/1 dated 28th February 1990 addressed to General Managers, All Indian Railways, Production Units etc., Sub: Constitution of Tender Committee on Zonal Railways and Production Units. A Question has been raised as to what should be, the level of Tender Committees to consider Tenders in regard to purchase of Stores, in case the lowest offer (s) as received as/are unacceptable on Technical considerations. This point has been examined and it is clarified that while level of the Tender Committee to consider the Tendered offers could be decided based on the lowest acceptable as per the Technical note, it would be incumbent on the said Tender Committee to examine individually all the offers received lower than the lowest acceptable offer whether Technically acceptable or not and to make appropriate recommendations in each case for consideration of accepting authority. In this connection. it may be noted that a Tender can be passed over only with the approval of the accepting authority based on the recommendations of the Tender Committee and not otherwise .In this connection, attention is also invited to instructions as issued under Boards letter No. 72/ WI/ CT/ 12 (P) dated 11th December 1981. Sd/Executive Director/Finance Railway Board

Annexure - II/3-17 GOVERNMENT OF INDIA (BHARAT SARKAR MINISTRY OF RAILWAYS (RAIL MANTRALAYA) (RAILWAY BOARD) No. F(X)II/91/PW/3 The General Managers, All Indian Railways including CLW, DLW, ICF and W & AP. The General Manager M. T. P., Calcutta. The General Manager (Const.) N. F. Railway, Guwahati. The General Manager (Const.) Southern Railway, Bangalore. The Director General, RDSO, Lucknow. The AGM, Central Organisation for Railway Electrification, Allahabad. The CAO/MTP, Bombay, Madras and Delhi The Officer on Special Duty, Rail Coach Factory, Kapurthala. The CAO, D. C. W., Patiala, COFMOW, New Sub : Delegation of powers for entering into contracts - Inclusion of quantum of Excise Duty and Sales Tax etc. * * * A doubt has been raised as to whether the quantum of Excise Duty and Sales Tax is to be added to the basic value quoted to determine whether the tender falls within the powers of acceptance by General Manager, as after addition, the value works out to more than Rs. 5 crores and beyond the powers of General Manager vide item 47 of the Schedule of Powers. It is clarified that while deciding such type of cases the criterian for the accepting authority should be"value of purchase", which would include Excise Duty, Sales Tax or any other charges payable to the seller. The value of option clause, wherever provided for, should also be taken into consideration while determining the level of Tender Committee. This would be applicable to Tender Committees of all levels covering both Store Tenders and Works Tenders. (This disposes of N. F. Railway's Letter No. W/362/Con./JPZ/90/L/14/Pt. I dated 11th January 1991). D.A./Nil. Sd/(G.SUMAN) Director, Finance (Exp.), Railway Board. New Delhi, Dated 10th May 1991 New Delhi, Dated 10th May 1991

No. F(X)II/91/PW/3 Copy for information to :

1. The Principal, Railway Staff College, Vadodara.

2. The Principal, Indian Railway Institute of Mech. & Elec. Engg., Jamalpur. 3. The Principal, Indian Railway Institute of Signal Engg., & Telecom, Secunderabad. 4. The Principal, Indian Railway Institute of Civil Engg., Pune. 5. The Director, Indian Railway Institute of Elec. Engg., Nasik Road. 6. The General Secretary, IRCA, New Delhi. 7. The Secretary, Railway Rates Tribunal, Madras-23. 8. The Chairman, Railway Recruitment Board, Allahabad, Bombay, Calcutta, Madras, Muzaffarpur, Secunderbad, Patna, Guwahati, Bangalore, Malda, Gorakhpur, Ranchi, Chandigarh, Jammu & Ajmer. 9. The Director, Indian Railways Centre for Advance & Maintenance Technology, Gwalior. D.A./Nil. Sd/(G.SUMAN) Director, Finance (Exp.) Railway Board. No. F(X)II/91/PW/3 New Delhi, Dated 10th May 1991

Copy to FA & CAOs, All Indian Railways, Production Units etc. D.A./Nil Sd/(G.SUMAN) Director, Finance (Exp.), Railway Board. ANNEXUREII/3-18 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. F(X)II/91/PW/3 New Delhi, Dated 13th December 1991

The General Managers, All Indian Railways including CLW, DLW, ICF and W&AP. The General Manager, M.T.P. Calcutta The General Manager (Const.), N. F. Railway, Guwahati. The Director General, RDSO, Lucknow. The AGM ,Central Organisation for Railway Electrification, Allahabad The CAO/MTP, Bombay, Madras and Delhi. The Officer on Special Duty Rail Coach Factory, Kapurthala

The CAO, D. C. W., Patiala, COFMCW, New Delhi. Sub : Delegation of powers for entering into contracts Inclusion of quantum of Excise Duty and Sales Tax etc. * * * In terms of Board's letter referred to above it was clarified that while deciding the tenders/contracts the quantum of Excise Duty, Sales Tax and other charges ided in the value of purchase. Board have reviewed this matter. In the case of imports, it is the C. I. F. value which determines the accepting authority without taking into account the Excise and Customs duty as statuatory duties are always considered extra according to the extant law. Accordingly, it has been decided that Excise Duty, Sales Tax and quantum of "Option clause should not be included in the value of the tender for determining the competency. D.A./Nil Sd/(G.SUMAN) Director, Finance (Exp.), Railway Board. No. F(X)II/91/PW/3 Copy for information to: 1.The Principal, Railway Staff College, Vadodara New Delhi, Dated 13.12.1991

NORTHEAST FRONTIER RAILWAY Office of the General Manager (Stores) Maligeon,Guwahati-781011 No. S/GL/222/0 Pt. IX Dated 27th January 1992

To The Secretary (Finance-Expenditure) Railway Board, New Delhi. (Personal attention of Shri G. Suman, Director Finance/Exp.) Sub : Delegation of powers for entering into contracts-Inclusion of quantum of Excise Duty and Saies Tax Etc. Ref.: Railway Board's letter No. F(X)II/91/PW/3 dated 13th December 1991. * * * In the Board's letter referred to above, it has been advised that the elements of Excise Duty, Sales Tax and quantum of "Option Clause" should not be included in the value of the tender for determining the competency of acceptance. But from the above letter it is not clear whether the above elements have to be taken into account or ignored while considering the rates quoted by the tenderers for comparisation of the offers received against tender enquiries. At present, this Railway is considering the all inclusive rates taking into account the basic rate, Excise Duty, Sales Tax, Freight etc. while evaluating the various offers. Board are requested to kindly clarify the above at the earliest. Sd/(N. R. NAIR) Chief Material Manager, for General Manager (Stores), N. F. RIy, Maligaon, Guwahati-11. Copy to: 1.Adviser (Railway Stores) Railway Board, New Delhi He is requested to kindly arrange the above clarification. ANNEXUREII/3-19 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. F(X)II-91/PW/3 The General Manager, Northeast Frontier Railway, Maligaon, Guwahati. Rail Bhavan, New Delhi. Dated 20th February 1992

Sub : Delegation of powers for entering into contracts Inclusion of quantum of Excise Duty and Sales Tax etc. Ref.: Your Railway's letter No. S/GL/222/0 Pt. IX dated 27th January 1992. * * * The practice being followed on your Railway for including Excise Duty Sales Tax, freight etc while evaluating the various offers received against tender enquiries, is confirmed. D. A./Nil Sd/(SAROJ RAJWADE) Jt. Director, Finance (Exp.), I Railway Board. No. F(X)I1-91/PW/3 Copy, alongwith a copy of General Manager, N. F. Rail letter referred to above is forwarded for information to : The General Managers, All Indian Railways including CLW, DLW, ICF & W & AP. The General Manager, MTP, Calcutta. The General Manager (Const), N. F. Railway Guwahati. The Manager (Const.) Southern Railway, Bangalore. The Director General, RDSO, Lucknow. The AGM, Central Organisation for Railway Electrification, Allahabad, The CAO, MTP, Bombay, Madras and Delhi. ANNEXUREII/3-20 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. 92/F(FEX)1/1 New Delhi, Dated 28th May 1992/1st June 1992

The General Managers, All Indian Railways including CLW, DLW, ICF, WAP, RCF and Metro Railways, Calcutta The Director General, RDSO, Lucknow. The C.A.O., D.C.W., Patiala. The CAO, COFMOW, New Delhi.

Sub : Foreign exchange payments under Liberalised Exchange Rate Management System (LERMS) Please refer to this Ministry's reference of even number dated 24th March 1992 enclosing interalia a copy of DEA's O. M. No. 4(2) FEB. 1/92 dated 12th March 1992 on the above subject. According to this OM, in the context of the new system of partial convertibility of the Rupee and introduction of dual rate of exchange, i.e. official rate and market rate only import of goods by Ministries/Departments of the GOl as per the authorisation of Foreign Exchange Budget (FEB) of the Deptt. of Economic Affairs was covered by eligibility for foreign exchange at official rate. All other transactions including official travel, service payments, contributions /subscriptions to international organisations, consultancies etc. as well as Bilateral /Multilateral flows and capital transactions were to be covered under 'market rate'. 2. The above decision has since been followed by DEA's Resolution No. 4(4) FEB.I/92 dated 3rd April 1992 published in the Gazette Extraordinary of India, Part I Section I the same date. A copy of the Resolution is enclosed for information and necessary action. As laid down in para 3 of the said Resolution, departmental undertakings like Railways, Deptt of Telecommunications, etc. will meet all their foreign exchange payment liabilities at 'market rate'. Consequently there would be no allocation of foreign exchange j from Foreign Exchange Budget (FEB) of the DEA to the Railways this year. 3. In view of the decision of the GOI as referred to in para 2 above there would be no allocation of free foreign exchange from the Foreign Exchange Budget (FEB) to the Railways/Production Units, etc. by this Ministry this year. All the Units will meet their requirements of foreign exchange from the market. However, foreign exchange payment even at 'market rate' would be subject to the standard financial procedure-governing authorisation of Rupee expenditure including internal finance clearance for incurring the expenditure in foreign exchange. As the market rate will be higher than the exchange rate prevailing when the Budget proposals were formulated the Railways/Production Units should keep their total expenditure within the Budget by either restricting imports or by savings elsewhere or by both. Railways/Production Units should strive to meet their requirements out of indigenous sources as far as possible.

4. Consequent upon the changes in procedures for transactions relating to foreign exchange, the instructions in vogue vide Railway Board's letter No. 82/F(FEX)1/1 dated 13th January 1986 restricting the powers of GMs for release of foreign exchange from 'free resources' to Rs. 10 lakhs in each case (on GIF basis) subject to a ceiling of Rs. 1 crore annually, has become redundant, as allocation of Foreign Exchange Budget by DEA is no more available for release. As such, these instructions stand withdrawn with immediate effect. Likewise, there will be no need for obtaining Board's approval for floating global tenders for procurements to be financed out of free resources. Instructions contained in Board's letter No. 85/F(S)I/PW/7/1 dated 29th December 1989 stipulating that in respect of import tenders valuing more than Rs. 2 crores, the Tender Committee recommendations duly approved by GM should be submitted to the Board for final approval will be followed. 5. The foreign exchange payments made and commitments entered into during each month, both in Rupee terms and in foreign currency, will continue to be advised to this office regularly as at present. This statement may please be furnished invariably by the 10th of the succeeding month. 6. As regards transactions financed out of Billateral/Multilateral credits, etc., while these will also be covered under 'market rate', all the extant procedures for obtaining Board's approval etc., including foreign exchange release, for such transactions will continue as before. Similarly, if contracts are proposed for imports from countries covered under Rupee Payment Agreements, these cases may also be forwarded to the Board's office as in the past, for further processing, including Foreign Exchange release. Please acknowledge receipt. D. A.: As above Sd/(P. RAJAGOPALAN) Exec. Director, Finance (L &F), Railway Board. No. 92/F(FEX)1/1 New Delhi, Dated 28th May 1992 1st June 1992 Copy, alongwith copy of the enclosure, forwarded to the FA & CAOs, All Indian Railways/ Production Units, Metro Railway, Calcutta, DCW, COFMOW and Director (Finance), RDSO. Sd/(P. RAJAGOPALAN) Exec. Director, Finance (L & F), Railway Board. D. A. : As above Copy to Adv. (TD), Adv.(Sig.), Adv.(PU), Adv. (Mech.), Adv. (Works), EDRS(P), EDRS(S), EDRS(G), EDRE, ED Track(M), ED Track (P),EDTrack(MC), EDRE(S & T), EDME(W), ED(MTP), EDCE(B & S),ED(C& IS), ED(Dev.), EDEE(PS), Jt. Secy.(G), Railway Boardfor information and necessary action. MINISTRY OF FINANCE (DEPARTMENT OF ECONOMIC AFFAIRS)

RESOLUTION
New Deihi. Dated 3rd April 1992. Sub : Release of foreign exchange by Government Departments Delegation of Powers etc. * * * No. F. 4(4)FEB. l/92-Ministry of Finance Department of Economic Affairs Resolution No. 4(5) FEB. 1/90 dated 26th June 1990 and the orders issued thereunder lay down the procedure for authorisation of foreign exchange for meeting payment liabilities on account of import of goods and services by Adm Ministries/Departments. and import of bulk commodities by the designated canalising agencies. The authorisation for Admn. Ministries/ Departments provide for foreign exchange requirements of all departmental | undertakings and the State Governments as well as a few specified public Sector| Undertakings which are within the purview of Foreign Exchange Budget allocations notified by Department of Economic Affairs every year. 2. In accordance with this procedure, administrative Ministries have full powers to approve contracts and release foreign exchange for all their payment requirements provided a the requisite clearances/approvals from essentiality, administrative and technical angles, are obtained and relevant provisions of financial and tendering procedures are complied with. Further, the total foreign exchange payments are to be restricted to the FEB ceiling notified by Department of Economic Affairs. The procedure also provides for the sub- allocation of the approved provision to the Public Sector Undertakings, referred to in thaH preceding paragraph. 3. The above procedure has been reviewed in the light of instructions vide OM. Nof 4(2)FEB. I/92 dated 12th March 1992 issued in pursuance of Liberalised Exchange Rate Management System (LERMS). According to these instructions, foreign exchange at the 'official rate' can be obtained from authorised dealers (ADs) by Ministries/Departments of the Government of India for the import of goods by submitting a certification of the Financial Adviser/Internal finance wing of the Ministry/Department concerned that the said imports are as per authorisation of the Foreign Exchange Budget of Department of Economic Affairs (DEA). It is hereby clarified that Ministries/Departments would have access to foreign exchange at "official rate' only for import of goods required for departmental purposes and approved in the Foreign Exchange Budget. For import of goods in excessf of the FEB ceiling Ministries/Departments would have to avail of foreign exchange at the 'market rate'. All payments for non-goods transactions including officiaj travel, servicef payments, contributions/subscriptions to international organisations, consultancies, etc. will have to be made by obtaining foreign exchange at "market rate'. All public Sector Undertakings including those mentioned in paragraph 1 above as well as departmental undertakings like Railways, Department of Telecommunications, Department of Posts Doordarshan and All India Radio will meet all their payment liabilities at 'market rate'. 4. In the light of revised procedure as described above, it will no longer be necessary for Department of Economic Affairs to directly control and monitor such foreignexchange payments of administrative Ministries/Departments and PSUs as are made at 'market rate'. There would thus be no allocation of Foreign Exchange from the Foreign Exchange Budget for these payments. However, foreign exchange payments by Ministries/' Departments even at 'market rate' would be subject to the standard financial procedure governing authorisation

of rupee expenditure inclding internal finance clearance for incurring the expenditure in foreign exchange. Thus the Foreign Exchange Budget allocations of administrative Ministries, to be notified by Department of Economic Affairs, will henceforth provide only for payment liabilities for import of goods required for departmental use as well as similar requirement of the respective departments of State Governments, which are within their sectoral charge. 5. Ministries/Departments of the Government of India may continue to exercise full powers to make foreign exchange payments for the import transactions covered under the FEB allocations to be notified by Department of Economic Affairs subject to the following conditions: (a) All requirements in regard to financial tendering and budgetary procedures are complied with; (b) The foreign exchange liability is met fully within the FEB Ceiling notified by the Department of Economic Affairs; (c) The Financial Adviser/Internal Finance Wing will issue a certificate that the import of goods for which access to foreign exchange at 'official rate' is sought, is required for departmental use and the requisite provisions exists in the Foreign Exchange Budget is approved by Department of Economic Affairs. 6. For conversion of multiple currency bids from foreign bidders, the existing provisions contained in Department of Economic Affairs OM No. F. 4(5)FEB. E/88 dated 28th December 1988 as modified from time to time will be followed for the purpose of award of contracts. 7. Foreign exchange transactions relating to bilateral/multilateral credits will not require approval of DEA provided the administrative financial and bidding procedures as per the normal rules and those prescribed under relevant agreements are followed. Approvals of DEA would however be needed for any borrowing under commercial terms including suppliers' credit of more than one year duration. 8. For bulk commodities under the canalized list, Department of Economic Affairs will henceforth notify FEB allocations only for commitments for import of crude, diesel and kerosene by IOC and finished fertilizers by MMTC. The import commitments will be made by the canalised agencies against these allocations in consultation with concerned administrative Ministries. Department of Economic Affairs may also consider authorising additional import of these commodities over and above the FEB allocation provided the payment thereof is made at 'market rate'. The import of other canalised commodities will be regulated by the concerned administrative Ministries and the canalising agencies. Payments for such imports will be made only on 'market rate' of exchange. 9. Department of Economic Affairs will issue suitable instructions in regard to reporting of foreign exchange payments at 'official rate' of exchange by the administrative Ministries/ Departments and the canalising agencies referred to above. Sd/(Y. VENUGOPAL REDDY) Jt. Secy. ANNEXUREII/3-21

GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAYA) (RAILWAY BOARD) No. 85.F(S)I/PW/7/1 The General Managers, CLW, DLW, ICF & RCF. Sub : Constitution of Tender Committee and Authority competent to accept Stores purchase. * * * In partial modification of the instructions contained in Board's letter of even number dated 27th May 1987, as amended from time to time, Ministry of Railways (Railway Board) have decided to revise the Constitution of Tender Committee for considering the tenders and authority competent to accept stores purchases on four major Production Units viz. CLW, DLW, ICF & RCF as under: Sl. No 1 2. 3. 4. 5. Value Limit Accepted by JAG SAG SAG (Coord) SAG (Coord) G.M. Tender Committee Consumer Finance Dept. Senior Senior Scale Scale JAG Senior Scale SAG SAG SAG ( Cord) JAG * SAG SAG/ SAG ( Cord) ' New Delhi, Dated 24th February 1993.

Stores Senior Scale JAG SAG SAG SAG ( Cord)

ABOVE RS. 2 LAKHS UPTO RS.5 LAKHS ABOVE RS. 5 LAKHS UPTO RS.10 LAKHS ABOVE RS. 25 LAKHS UPTO RS. 50LAKHS ABOVE RS. 50 LAKHS UPTO RS. 1 CRORE ABOVE RS. 1CRORE & UPTO LIMIT OF GMS POWERS

* In the Units, where there is only one SAG Accounts Officer, the JAG Accounts Officer may bepermitted to be a Member of Tender Committee upto a limit of Rs. 75 lakhs. The above instructions will be valid for a period of one year from the date of issue of this letter on an experimental basis and further extension will be decided on the basis of feed-back to be received from the concerned Production Units mentioned above. The Production Units mentioned above are, therefore, requested to send a report about the functioning of this system one month before the expiry of the valildity of these instructions to enable Board's Office to consider further extension of the system.

All other terms and conditions contained in Board's letter dated 27th May 1987 mentioned above, as amended from time to time, will remain unchanged. Please acknowledge receipt. Sd/(R. N. SONI) Executive Director Finance Railway Board ANNEXUREII/3-22 GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAYA) (RAILWAY BOARD) No. 93/RS(G)/645/1/PAC-165 New Delhi, Dated 11th March 1993.

The General Managers (Stores), All Indian Railways & Production Units. The General Manager, Railway Electrification, Allahabad. The General Manager, Metro Railway, Calcutta. Sub : Procedure for dealing with tenders by the Tender Committee. * * * The Independent Committee of Experts set up by Railway Board in Feb., '91 as recommended by the Public Accounts Committee (8th Lok Sabha), for investigating inconsistencies and irregularities committed in two cases of purchases in 1979 by Board's Office have observed that while evaluating offers received against the tenders floated by Railway Board though a number of clarifications on technical and commercial conditions given by the firm were asked from the firm and in certain cases deviations as stipulated by the firm were accepted but one of the most important technicall deviations from the specifications quoted by the firm was lost sight of during the examination of the offer and also at the time of issuing advance acceptance of offer. The said lapse on the part of the Tender Committee has resulted in great inconvenience as the firm was reluctant in accepting the stipulation mentioned in specifications which was incorporated in the formal order placed on the Tenderer. In view of the above the said Committee has recommended that evaluation of tender, preparation of briefing notes, technical notes etc. need to be done with greater care and attention. The Committee has also recommended that the Tender Committee members should carefully scrutinize the offer of at least the bidder recommended for award of contract. It should further be ensured that utmost care is taken to examine all technical as well as commercial aspects especially technical deviations quoted by the Tenderer. The procedure for dealing with the tenders by the Tender Committee has already been laid down vide Railway Board's letter No. 87/RS(G)/777/3 dated 6th November 1987.

Please acknowledge receipt. Sd/(R. S. LAHAN) Dy. Director, RIy. Stores (G) Railway Board. Copy to 1. FA & CAO, All Indian Railways, Metro Railway Calcutta &, RE/Allahabad 2. The Chief Administrative Officers, MTP/Rlys Bombay, Madras, New Delhi., Institute of Mech. & Elec. Engg., Jamalpur. 3. GMs (Cons.), S. RIy., Bangalore, S. E. RIy. Waltair and N. F. RIy., Guwahati. 4. DG/RDSO/Lucknow. 5. Principal, Railway Staff College, Vadodara Indian Railway Institute of Sig.Engg. and Telecom Ssecunderabad. Indian Railway Institute of Aaadv.Track Tech Poona . Institute of Mech.& Elec.Engg. Jamalpur . Indian Railway Institute of Elec Engg. Nasik.. 6. Chairman, Railway Rates Tribunal, Madras. 7. Exec. Director, iron & Steel, Calcutta. 8. The CAO/FA & CAO, COFMOW, Railway Offices Complex, Tilak Bridge, New Delhi-2. 9.The ADAI(Rlys.), New Delhi (with 10 spare copies). 10. Director of Audit, Ail Indian Railways. Copy to :- EDF(S),EDF. EDRE. EDTK(M), EDTK(MC). EDTK(P), ED(V), DV(S). F(S)I, F(S)li, FS-III, FS(POL), Dev. Cell, MTP Cell, RE(S),Track-I,Track-II Track-III & All Officers and Branches of Stotres Dte.

******* ANNEXUREII/3-23 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. 86/F(S)1/PW-7/2 New Delhi, Dated 13th September 1994.

Sub : Constitution of Tender Committee and authority to accept track fittings purchase on Zonal Railways/ Production Units etc. * * * The Ministry of Railways (Railway Board) have reviewed the instructions issued vide Board's letter no. 86/F(S)I/PW 7/2 dated 15th June 1987 regarding constitution of Tender Committee and authority competent to accept track fittings purchases and have decided that the instructions issued vide Board's letter No. 85/F(S)I/FW-7-1 dated 1st December 1993 (Copy enclosed for ready reference) regarding constitution of Tender Committee and

authority competent to accept Stores purchases will be applicable in case of Track Fittings items also. Please acknowledge receipt. Encl : As above Sd/(R. C.CHAUHAN) Director, Finance Stores ANNEXUREII/3-24 Copy of RIy. Board's letter No. F(X)11-94/PW/3 dated 8th November 1995 addressed to General Managers, All Indian Railways and others. Sub : General Manager's Powers to award Contracts In Works/Stores matters. Ref: Board's letter No. F(X)II-86/PW/6 dated 28th April 1987 and 5th May 1987. * * * The Ministry of Railways have decided that the powers of General Managers for awarding contracts in Works/Stores matters vide item No. 47 of General Manager's Schedule of Powers Circulated vide Board's letter No. F(X)86/PW/6 dated 5th May 1987 may be reduced from Rs. 5 Crores to Rs. 3 Crores each. This has the sanction of the President. Please acknowledge receipt of the latter. Sd/(SHANKAR BANERJEE) Director Finance (Exp) Railway Board ANNEXUREII/3-25 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. F(X)ll/94/PW/3/Pt. VII New Delhi, Dated 3rd September 1997

General Managers, All Indian Railways & including CLW, DLW, ICF & W&AP The Officers on Spl. Duty, The Director General, RDSO, Lucknow. The General Manager Central Organisation for Railway Electrification, Allahabad. The General Manager, Rail Coach Factory, Kapurthala. CAO, MTP, Mumbai, Chennai & Delhi CAO, DCW, Patiala, COFMOW, New Delhi. Sub : Delegation of powers to General Managers. In supersession of Board's letter No. F(X)II/94/PW/3, dt. 8th November 1995, it has been decided by the Ministry of Railways that the powers of General Managers for awarding

contracts in Works/Stores matters may be enhanced from Rs. 3 crores to Rs, 8 crores in each case. Accordingly, item No. 47 of the Schedule of Powers of General Manager's circulated vide Board's letter No F(X)II/86/PW/3 dated 5th May 1987, as amended from time to time, stands modified. This has the sanction of the president. Please acknowledge receipt of this letter. Hindi version will as follows. Sd/(USHA MATHUR) Executive Director Finance (AXP) Railway Board. ANNEXUREII/3-26 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. 85/F(S)-I/PW-7/1. The General Managers (Stores), All Indian Railways & Production Units. Metro Railway, Calcutta. Railway Electrification, Allahabad. Sub : Constitution of Tender Committee and Authority competent to accept Stores purchase on Zonal Railways/Production Units. * * * The Ministry of Railways have reviewed the powers of acceptance of Stores tenders and have decided that in supersession of the instructions communicated in Board's letter of even number dated 27th May 1987, even number dated 24th February 1993 and 1st December 1993 as amended from time to time the constitution of Tender Committees for considering tenders and powers of acceptance in tenders for procurement of various types of Stores will be as under: Sl. No. 1 2 3. 4 Value Limit Accepted by JAG SAG SAG ( Co-ord) SAG Tender Committee Stores Senior Scale JAG SAG SAG Consumer Deptt. Senior Scale JAG SAG SAG Finance Junior Scale Senior Scale JAG SAG New Delhi, Dated 19th November 1997.

Above Rs.3 lakh & upto Rs. 8 lakhs. Above Rs.8 lakh & upto Rs. 25 lakhs. Above Rs.25 lakh & upto Rs.1crore Above Rs.1crore &

5 6

upto Rs.2.5 crore ( Co-ord) Above Rs.2.5 crore & AGM upto Rs.5 crore Above Rs.5 crore & GM ( upto upto Rs.8crore his powers of purchase cases beyond Rs.8 crores to be sent to Board)

SAG ( Co-ord) SAG ( Co-ord)

SAG ( Co-ord) SAG ( Co-ord)

SAG SAG ( Co-ord)

Note-In the case of any establishment which does not have AGM, item 6 renumbered as 5 will cover Rs. 2.5 crores. and upto the limit of GM's powers. All purchase proposals not involving foreign exchange valued over Rs. 8 crores and purchase proposals involving foreign exchange valued over Rs. 8 crores and purchase proposals involving foreign exchange valued over Rs. 2 crores are to be submitted to Railway Board, duly approved by GM, for obtaining approval of the competent authority. It is re-iterated that the total value of a tender will be the criterion to decide the competent authority for acceptance where purchase proposals against the tender are put up in parts. The Stores Member of the Tender Committee will put up the proceedings direct to the accepting authority. The structure and composition of Tender Committees detailed in Para 1 above should not be altered locally excepting in an individual case, for reason to be recorded and with the concurrence of FA & CAO and approval of General Manager. Please acknowledge receipt. Sd/'(M. S. KHAN) Exe. Director (Finance) Railway Board. No. 85/F(S)-I/PW-7/1 New Delhi, Dated 19th November 1997

Copy to: 1. FA& CAOs, All Indian Railways & Production Units, Metro Railway, Calcutta & RE, Allahabad. 2. DG/RDSO, Lucknow. 3. The Principal Railway Staff College, Vadodara. Indian Railway Institute of Sig. Engg. & Tele-corn, Secunderabad. Indian Railway Institute of Mech. & Elect. Engg., Jamalpur. Indian Railway Institute of Elect. Engg., Nasik. Prof. (Inv. Mgt.), RIy. Staff College, Vadodara.

4. Chairman, Railway Rates Tribunal, Madras. 5. Executive Director, Iron & Steel, 3 Koila Ghat Street, Calcutta. ANNEXUREII/3-27 GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. 85/F(S)-1/PW-7 The General Manager (Stores), All Indian Railways/PUs. Subject: Constitution of Tender Committee and Authority competent to accept Stores purchase on Zonal Railways/Production Units. Ref. : Board's letter of even No dated 19th November 1997. * * * In continuation of Board's letter of even no dated 19th November 1997, it has been decided that: "In Railway organisations including Production units where, there is only one SA grade Officer in Stores Department in a particular unit, the stores member will be a JA Grade Officer for tenders upto Rs. 50 lakhs. However, where tender committee members have allready formed, tender proceedings or have conducted negotiations, the constitution of tender committees will be as per existing powers, prior to receipt of this letter". Please acknowledge receipt. Sd/(M. P. MALL) Joint Director Finance (Stores) Railway Board. ANNEXUREII/3-28 GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAYA (RAILWAY BOARD) No. RSP/98/4100 (Policy) The General Managers (Stores), All Indian Railways, C. A. O. (R)s, Production Units. New Delhi, Dated 15th January 1998. New Delhi, Dated 22nd December 1997.

Sub : Forwarding of Tender cases Board's Office for obtaining Competent Authority's approved. * * * Consequent to the issue of Board's letter No. F(X)II/94/PW/3 Pt. VII dated 3rd September 1997 enhancing GM's power to conclude Tender cases valued upto Rs. 8 Crores in indegenous stores purchases, the Railways are required to forward their Tender Committee's recommendations to Board's office, wherever the value exceeds the above limit for obtaining Competent Authority's approval. It has been decided that, henceferth, whenever Railways forward their Tender Committee recommendations, the same should invariably be accompanied by copies of original tender specifications, offers received besides the materials which are being sent till now. Please acknowledge receipt. Sd/(SHIVENDRA KUMAR) Executive Director, Railway Stores (G), Railway Board.