SPECIAL CONDITIONS (M & P ITEMS)

1. To be quoted in Railway format duly enclosing the tender documents duly signed in all pages.
2. Tenderers are advised to remit Earnest Money Deposit (EMD) without fail along with their offers if they are
not in the following exemptions:-
 Vendors registered with NSIC up to the monetary limit of their registration for the items tendered.
 Vendors registered with Railways up to the monetary limit of their registration for the
items tendered/trade groups of the items tendered.
 Vendors on approved list of RDSO/Pus/CORE/Railways, etc for the specific items tendered.
 Manufacturers and their accredited agents.
 Other Railways, Govt. Departments.
3. Inspection of Supplies: By RITES.

4. Specification and special conditions to be commented upon Para-wise and any deviation to be brought out
clearly.

5. To be quoted on FOR destination basis with basic rate, packing charges, forwarding charges, excise duty,
sales tax (VAT), entry tax, freight charges, etc shown separately. Tenderers are required to go through the
Karnataka Tax on Entry of Goods Act, 1979 or latest before quoting and quote Entry Tax if any with
clear percentage of rate.

6. The charges quoted without specific rates will not be considered for evaluation of offers and paid to the
supplier/contractor; such charges have to be borne by the suppliers if applicable at the time of quoting of
reduced/enhanced by State Government subsequently.

7. The offers are evaluated based on all inclusive rate quoted item wise and destination (consignee) wise
considering all charges furnished in the offer.

8. Attested copies of the previous orders as obtained from other Railways/corporate should invariably be
enclosed to the offer along with inspection certificated and acknowledged delivery challans issued by
consignee to substantiate reasonableness of quoted rate, to ascertain the tenderer’s past performance and to
consider maximum possible quantity to part II approved vendors.

9. Commissioning of M & P
i. In the event of contractor’s failure to have M & P commissioned by the time or times respectively specified
in the letter of acceptance or contract, purchaser may withhold, deduct or recover from the contractor as
penalty a sum of @ 2 percent of the price of M & P which the contractor has failed to commission as
aforesaid for each and every month (part of a month is treated as full month) during which the M & P may
not have been commissioned, subject to an upper limit of 10 per cent of the contract value.

ii. The supplier has to conduct joint inspection along with the consignee’s representative at the time of opening
the cases after receipt of the cases at consignee’s site.
iii. The installation, commissioning & demonstration will have to be done by the supplier immediately after the
joint inspection at the consignee’s site.

10. Warranty

(a) Warranty period for M & P will be 24 months from the date of commissioning and proving out of M
& P. A maximum period of two weeks will be allowed for attending and rectification of faults during the
warranty period.

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(b) Maximum down time during the warranty period will be 2 per cent for on line M & P and 10 per cent for off
line M & P calculated on quarterly basis.

(c) A penalty of 0.5 per cent of contract value per week will be levied for delay in response time for attending
and rectification of faults beyond specified time during the warranty period as detailed above.

(d) Maximum penalty to be levied on account of warranty failure will be 5 per cent of the contract value
calculated during whole warranty period and after that if there is any delay on the part of the supplier; purchaser
shall be entitled for encashment of WG bonds.

(e) In case of bad performance of the firm during the warranty period the same will be recorded and circulated
to all Railways for deciding future orders on the firm and evidence to the contrary is not available the firm’s
offer may be deleted.

11. Annual Maintenance Contract (AMC):

i) Tenderers are required to quote for the post-warranty annual maintenance contract (AMC) for a
period of five years after expiry of the warranty period of the M & P along with their offers. The
scope of AMC will include preventive and breakdown maintenance. AMC charges will
include all costs of personnel, spares etc. except the cost of consumables required for day to
day operation & daily maintenance checks.

ii) The tendrers should quote AMC rates for each of the five years. The AMC prices for each year
will be firm. The AMC charges shall be separately payable in Indian Rupees only. The AMC
charges would be added to the FOR destination price quoted for M & P for the purpose of
comparative evaluation of offer. In order to equitably compare different AMC charges for different
years, the concept of NPV (Net Present Value) may be used at a predetermined rate of discounting
to bring the AMC charges at the same footing in the assessment of FOR destination price. The rate
of discounting will be 10% and the NPV calculation shall be as per annexure below-:

Table- NPV Calculation for AMC will be as follows

1. AMC for 5 years after Warranty Period
Cost in Rs. PV Factor Total Cost of
@ 10% Per annum AMC after
discounting
factor (in Rs.)
i First year AMC cost 0.7513
ii Second Year 0.6830
AMC cost
iii Third year 0.6209
AMC cost
iv Fourth year 0.5644
AMC cost
v Fifth year AMC 0.5130
cost

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NB: The AMC cost will be calculated after multiplying quoted rates with PV factor
i.e. after discounting annual cost @ 10% per annum.
iii) The post AMC maintenance of machines will be dealt with by the end users. In order to facilitate the same,
tenderers are required to give the current cost spares required for maintenance of a machine after AMC period
and the current service charges for each items of work of repair of M & P beyond AMC period. These charges
will not be included in the price of M & P for the purpose of comparative evaluation of offers.
iv) The maximum downtime and maximum response time as also penalties for failure to adhere to the same,
AMC Payment terms should be linked to these performance parameters, will be as follows:
a) Maximum down time during the AMC period will be 2 per cent for on line M & P and 10 per cent for off line
M & P calculated on quarterly basis.
b) A penalty of 0.5 per cent of contract value per week will be levied for delay in response time for attending
and rectification of faults beyond specified time during the AMC period as detailed above.
c) Maximum penalty to be levied on account of AMC failure will be 5 per cent of the contract value calculated
during whole AMC period.
iv) Tenderers who are OEM, must give undertaking for supply of spare parts for a period of expected life of the
machine/equipment. Other tenderers must submit undertaking from OEM for supply of spare parts for a period
of expected life of the machine/equipment.
v) The actual Contract Agreement must show the AMC charges as a separate schedule/ annexure to distinguish it
from the transaction value of M&P, to avoid undue Custom Duty/charges.

12. Payment terms:

80 (eighty) per cent of the supply payment on proof of inspection certificate and receipted challan issued
by the consignee and balance 20 (twenty) percent of the amount after satisfactory
installation/commissioning and proving test of the M & P subject to submission of performance guarantee
bond for warranty obligation.

13. Insurance up to ultimate consignee must be ensured by the supplier.

14. Performance guarantee bond to the extent of 3 per cent of order value has to be submitted while
claiming balance payment. Validity shall be warranty period plus 6 months.
15. Bank details of the vendors are invariably furnished for making payment through EFT mode of payment.
16. Tenderers are advised to confirm all the above conditions clearly. Railways may not entertain any
correspondence after opening the tender for clarifying these conditions.
17. Purchase is governed by IRS conditions of Contract.

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