GOVERNMENT OF ANDHRA PRADESH WATER RESOURCES DEPARTMEN From To Sti K.Srinivas, M.Tech, MIE, MIGS All the members of Engineer-in-Chief (Admin), Board of Chief Engineers. Water Resources Department, & Chairman, Board of Chief Engineers, D.No.48-10-9/1,NH Feeder Road, Currency Nagar, Vijayawada - 520008 Lr. No. RC/ENC(AW)/ADA/AEE/24686/Vol.XI /2018 _Dt. 2-08 -2019 Sir, Sub: BOCEs - 4" Meeting of Board of Chief Engineers’ during the year 2019, held on 22-07-2019 @ 03.00 P. M in the chambers of Engineer-in-Chief(Irrigation), PWD Grounds, Vijayawada - Minutes of the meeting communicated -Regarding. It is to inform that the Minutes of the 4" Board of Chief Engineer’s meeting during the year 2019 held on 22-07-2019 @ 03.00 P. M in the chambers of Engineer-in-Chief (Irrigation), PWD Grounds, Vijayawada are placed in the Water Resources Department official web site i.e "www.irrigationap.cag.gov.in”. All the members are therefore requested to download the same and take further necessary action Encls: As stated above Yours faithfully ‘Sd/- K.Srinivas Dt. 21.08.2019 Engineer-in-Chief (Admin) Water Resources Department & Chairman, Board of Chief Engineers Copy to, DEE (computers) with a request to forward this letter to all ENCs and all CEs through mail, rusts ead tus ememellg cues wrth silt: roel Wd for Engineer-in-Chief (adhoiny zefosheLe Board of Chief Engineers(BoCEs) meeting held on 22-07-2019 @ 3.00 PM in the chambers of Engineer-in-Chief(Irrigation), PWD Grounds, Vijayawada for arriving modalities on reverse tenderino process for the Onaoing works, The Engineer-in-Chief(Admin), WR Dept, & Chairman, BoCEs welcomed the members of BOCEs meeting and requested the members to share their views on the modalities of reverse tendering process for the ongoing works in all Engineering Departments as directed by Special Chief Secretary to Govt. , WR Dept. The Engineer-in-Chief(|Irrigation), while initiating the discussion, has informed to the members that the process of reverse tendering is being adopted in some of the Organizations like NTPC, Coal India etc., and discussed briefly about the process of reverse tendering being implemented in other organizations and the minor variations in its implementation as detailed below: 1. Tender-cum-reverse auctioning shall be called upon as per usual tendering process to identify the qualified bidders and their price bids in the first stage of Tendering and to identify the lowest bidder from auctioning process in the second stage from the bidders qualified in the first stage. 2. Upon receiving the bids from various contracting agencies, the bids shall be shortlisted based upon successful meeting of the Qualification criteria prescribed 3. From the Shortlisted bids, the lowest quoted bid amount is taken as basic price offer for initiating the reverse tendering process 4. Within a short period of time after qualified bidders are shortlisted ie., after 2 hours, the reverse tendering process shall be commenced as follows: a) The basic price offer shall be displayed on the e-tendering platform screen for the qualified bidders to quote their revised bid amount against the initial basic price offer within a specified fixed time slot. b) Once, a quote is received, the e-platform automatically extends the time slot of the auction from the point of quoting to enable other qualified bidders to re-bidding ©) The qualified bidders are allowed to revise their bid amount any no. of times before expiry of the fixed time slot. 4d) The process of auction continues till the fixed time slot period expires, €) Finally, the work shall be allotted to the lowest quoted bidder.Variations in the above process: Method 1: The L1 bidder in the regular mode of tendering will not be allowed to participate in the reverse tendering process. However, after auctioning is over under reverse tendering process, the L1 bidder will be given a chance to choose whether he is interesting in taking up the work @ the bid amount finalized after reverse tendering process or not. Method 2: The L1 bidder along with other qualified bidders shall participate in the reverse tendering process and the bidder with the least quoted bid amount will be entrusted with the work. Method 3: The H1 bidder shall not be allowed to participate in the reverse tendering process as they have quoted on higher side and hence may not quote less amount. The views of KPMG also obtained on the tender-cum-reverse auction process for Civil Engg. Works and informed to the members. With the above details, the Engineer-in-Chief (Irrigation), WR Dept. elicited the suggestions of the members in implementing the reverse tendering process in the existing ‘ongoing projects. BoCEs Recommendations; ‘The members have discussed the matter in detail. During the discussion, the members opined that the process of tendering-cum-reverse auctioning would bring more competitiveness in bidders. After detailed discussion, the members have made the following recommendations to the Government on implementation of tender-cum-reverse auctioning process or reverse tendering process: 1. These guidelines are intended to be applicable for contracts where the Government is desirous of discovering a fair price through a competitive bidding process for the execution of ongoing projects. In this process it should be ensured that the prevailing terms and conditions of the contract remain unchanged besides a seamless transfer of responsibilities between the contractors (Agencies). 2. Before initiating the process of tender-cum-reverse auctioning for existing works for which agreement is in force, invariably the agreement should be terminated under appropriate clause of agreement as there is every chance of 2existing contracting agencies raising objections for fresh reverse tendering process when their agreements are in force. In this regard, the BoCEs also suggested to obtain legal opinion before initiating the termination of the existing agreement for avoiding legal complications. 3. After terminating the existing work, the estimate for the balance work is to be prepared with the original agreement rates which will become the Initial Bench Mark(IBM) value / Estimated Contract Value(ECV) on which tender- cum-Eauction (reverse tendering) shall be proceeded. 4, Also the prequalification criteria have to be revised as per standard guidelines stipulated in G.O. Ms. No. 94, 1&CAD(PWCode) Dept. dt. 01.07.2003. 5. If sufficient competition is not expected, feasibility of splitting-up the balance work terminated from original agency into smaller packages can be examined to encourage more no. of bidders. 6. The existing contractor may also be given a chance to participate in the tender-cum-reverse auctioning process. 7. Pre-qualification criteria i.e., a pre-determined threshold for the technical and financial criterion shall be finalized by the department considering the “balance work” of the terminated contract. 8. All bidders shall self-declare their details under each technical and financial criterion on the e-procurement platform along with an undertaking confirming their compliance with the technical and financial criterion prescribed in the bid document. 9. All bidders shall submit supporting documents for their submittals under each technical and financial criterion. 10.The existing online e-procurement system shall be revamped in a such a way that the system should be able to filter the qualified bidders and enable them to quote their price bids and also allow them to participate in e-auction process. 11. The threshold values of Technical and Financial qualification as prescribed by the dept. shall be displayed to the bidders on the screen of online e- Procurement site. The bidders have to submit their details of qualification their self-declaration on the criterion in prescribed text boxes along fulfilment of qualification criterion prescribed. The system automatically evaluate the qualification details uploaded by the bidders and enable thequalified bidders only to quote for their price bid in the prescribed box for the work. 12.All bidders satisfying pre-qualification criterion as per their submittals and self-declaration on e-procurement site shall quote their price offer. 13.The quoted Price Offer cannot be more than the “Balance Value of work uploaded” i.e., IBM value/ ECV value uploaded. 14.The Price bids of all the bidders shall be opened and the lowest quoted price bid among the qualified bidders in the tender process shall be determined. 15.At least two bidders shall be required to conduct the reverse tender process. 16.The L1 Price Offer(Initial) shall be the maximum allowable Bid price for the reverse tendering process. 17.Only one round of reverse tendering will be carried out in which bidders can revise their bids multiple times within the time limits specified. 18.At the start of the Reverse Tendering process the Maximum Allowable Bid Price will be set and bidders shall submit their bids in an online platform. 19. Names of the bidders/ vendors shall be anonymously masked in the Reverse Tendering process and vendors will be given suitable dummy names. 20.The initial period of the Reverse tendering process will be 3 hours, following which there will be auto extensions of time by 15 minutes in case of any reduction in bids recorded in the prior 15 minutes, 21.Only the current L1 bid shall be visible to all bidders’ who may revise their bids until the end of the process. 22.Decrements made in each subsequent bid shall be in terms of 0.5% of the Maximum Allowable Bid Price 23. The L1 bid may be determined following a period of inactivity of more than 15 minutes after the initial 3 hour period of bidding. 24.Following the determination of the L1 bid, the L1 bidder’s supporting documents under each technical and commercial criterion shall be verified. The reverse tendering process shall be on hold for a maximum period of 24 hours (1 day) while the L1 bidder’s supporting documents are verified. 25.Upon successful verification of the L1 bidder’s supporting documents, the reverse tendering process shall be closed declaring the L1 bidder as “successful bidder” and the remaining bidders in the process shall be notified as “unsuccessful” and their respective EMDs shall be refunded.26.In case there are discrepancies between the L1 bidder’s declarations under the technical and financial criteria and the supporting documents submitted, the L1 bidder will be disqualified, his EMD shall be forfeited, he will be removed from the reverse tendering process and the remaining bidders shall be notified of the date and time when the reverse tendering process shall be resumed. 27.The reverse tendering process shall be resumed with the L2 price as the Maximum Allowable Bid Price. 28.Only 15 minutes shall be initially allowed for the remaining bidders to revise their bids, subject to automatic extensions of 15 minutes in case of any reduction in bids recorded in the prior 15 minutes. 29.The reverse tendering process shall continue until the determination of a successful bidder. Chairmai ord t ) Engineer-in-Chtéf(Admin), WR, Dept.