CHAPTER 11

REPAIR CONTRACTS WITH FOREIGN AND INDIGENOUS FIRMS

11.1 Introduction

11.1.1 Peculiarity of Repair Contracts With Foreign/Indigenous Firms: The

contracts for repair of equipment by foreign/indigenous firms are generally
formulated and processed in the same manner as the contracts for
procurement of stores from foreign/indigenous sources. However, in some
respects, repair contracts are different from procurement contracts as they
have some unique features related to their processing, as also the terms
and conditions of contracts, as set out in this chapter.

11.1.2 Applicability of this Chapter to Repair Contracts With Indian Firms:

The provisions of this chapter would also apply to repair contracts with
indigenous firms.

11.1.3 Terms used in this Chapter: The term “Customer” used in this Chapter
shall mean the President of India acting through the officer signing the
contract and the term “Contractor” would mean the firm undertaking the
repair as per the contract.

11.2 Unique features related to processing of repair contracts

11.2.1 Preparation of Indents: The repair indent, to be sent by the Indentor to

the Procuring Agency, should clearly specify the type of equipment,
Quantity, type of repairs, history of previous major repair, name of the
manufacturer, Total Technical Life (TTL), assessed cost of the repair, etc,.
The amount should preferably be assessed or, if such assessment is not
feasible, obtained through a non-obligatory budgetary quote from all the
possible sources, including the OEM.

11.2.2 Selection of Vender: The repair should be carried out by the original
equipment manufacturer only. In case the original equipment
manufacturer expresses inability to undertake the repairs, any agency
authorized by the OEM may be approached. In the event of the OEM
expressing difficulty to undertake repairs and there being no OEM
authorized agency to undertake repairs, other possible sources may be
approached. The contractor has to be made accountable for the
performance of the equipments. There should be suitable PBG and
Warranty Guarantee provisions in the contract. In the case of Local Repair
Contracts the repairs may be got done directly through trade, if considered
feasible, within the delegated powers of the CFAs.

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