Guidelines for preparation of proper estimates, avoidance of cartel formation etc.

, for Works Division

(PO/03/16, Rev. no.-1, dt. 17/11/03)

AMENDMENT NO. 3 DT. 14/02/2012

EXISTING AMENDED
Sl.
Cl. Cl.
No. CLAUSE CLAUSE
No. No.
1 8.0 FOR CASES OF SERVICING/ 8.0
REPAIR BY MANUFACTURER/ No change
AUTHORIZED SERVICING AGENT
2 8.1 In the cases of servicing/ repair by 8.1 In the cases of servicing/ repair by manufacturer or authorized
manufacturer or authorized servicing servicing agent/ proprietary jobs, for value of work below ` 15
agent/ proprietary jobs, the estimates lakhs, the estimates will be based on the offer obtained from the
will be based on the offer obtained manufacturers/ service agent/ proprietary concern.
from the manufacturers/ service agent/
proprietary concern. This offer will be 8.1.1 All such works being proposed to be awarded on nomination
negotiated by a committee to be through OEM/Authorized Service Agent need to be routed and
convened by Works Contracts at a level recommended by the ‘Expert Committee’ for nomination works
equal to the LTE for such estimated in Works Division.
values and recommended for approval. 8.1.2 For works above the value of ` 15 lakhs the proposal will be
routed through Works Contracts Department.
8.2 In case the proposal is routed through Works Contracts
Department, the offers will be negotiated by a committee to be
convened by Works Contracts at a level equal to LTE cases for
such estimated values, and recommended for approval.
8.3 In case the proposal is not routed through Works Contracts
Department, for the cases mentioned at Cl# 8.3.1 and 8.3.2
subsequent to administrative approval, the following procedure
shall be followed to ensure cost effectiveness towards nomination
works.
8.3.1 For the regular repair works which are repetitive in nature like the
repair of mobile equipments and staff cars maintained by FMD,
Calibration services, repair of instruments etc.,-

8.3.1.1 At the beginning of the year, FMD and/or concerned department

will obtain the listed prices for spares & services from the
respective OEM/Authorized Service Agent.

8.3.1.2 The prices will be negotiated for price reduction/rebate by a

committee consisting of the HOD concerned, a member from
Finance and the Engineer for the work, as per the Delegation of
Powers.
For the purpose of negotiations, if the OEM/Authorized
Representatives are unable to come to VSP due to any reason,
then negotiations shall be done through e-mail.

In the above negotiation procedure, while obtaining the offers, all

efforts will be made to keep the prices “firm” for a period of 12
months (or) 6 months, based on mutually agreed terms and
conditions.

The committee as above shall duly recommend with appropriate

justification, the final negotiated prices for various items for the
approval of Competent authority.
8.3.1.3 The list of approved prices for various spares and services shall
be forwarded to Finance (General Accounts). On execution of a
job, and with the recommendation of the Engineer, Finance shall
process the bills, raised for the period for which approved rates
are applicable.
8.3.1.4 In case, the replacement of any spare/ services not appearing in
the list of items with listed price is necessitated, prices will be
negotiated by the committee mentioned at Cl#8.3.1.2 for each
individual item/ service.
8.3.2 For proposals pertaining to “expenditure on running and repairs
and maintenance of locos and equipments” and for other “non-
emergent works in respect of equipments requiring operational
maintenance on proprietary basis processed on ‘nomination basis’
in Works”, the respective prices shall be negotiated by the same
committee mentioned at Cl#8.3.1.2 for each individual
item/service, before processing for approval.
8.3.3 All the works awarded on nomination to OEMs/Authorized
Service Agents shall be put up to the BoD, post-facto, on a
quarterly basis, by MMS for information.

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