Appendix 3 — GOODS_MANUAL

GOODS_MANUAL

Appendix 3: Electronic Procurement (e-Procurement) and e-Auction (The details given in this appendix are generic in nature and are not prescriptive part of this Manual of Policies and Procedures. Procuring Entities may settle and decide the details with the service provider)
1.0Electronic procurement (e-procurement) E-procurement is the use of information and communication technology (especially the internet) by the buyer in conducting procurement processes with the vendors/ contractors for the acquisition of goods (supplies), works and services aimed at open, non-discriminatory, and efficient procurement through transparent procedures. The Procurement Policy Division, Department of Expenditure, MoF, has vide Office Memorandum no: 10/3/2012-PPC dated January 9, 2014, prescribed mandatory publishing of tenders through the e-procurement mode for tenders valued above Rupees two lakh.
In e-procurement, all processes of tendering have the same content as in normal tendering and are executed once the necessary changes have been made online by using the DSC as follows:
2.0Service Provider: A service provider is engaged to provide an e-procurement system covering the following: a) All steps involved, starting from hosting of tenders to determination of techno-commercially acceptable lowest bidder, are covered; b) The system archives the information and generates reports required for the management information system/decision support system; c) A helpdesk is available for online and offline support to different stakeholders; d) The system arranges and updates the Digital Signature Certificate (DSC) for Departmental users e) Different documents, formats, and so on are available for e-procurement systems.
a) Communications: Wherever traditional procedures refer to written communication and documents, the corresponding process in e-procurement would be handled either fully online by way of uploading/downloading/emails or automatically generated SMSs or else partly online and partly offline submission. It is advisable to move to full submissions online. More details would be available from the e-procurement service provider’s portal. In e-procurement, the tender fee, EMD, and documents supporting exemption from such payments are submitted in paper form to the authority nominated in the NIT, but scanned copies are to be uploaded, without which the bid may not be opened. In future, such payments may be allowed online also; b) Publishing of tenders: Tenders are published on the e-procurement portal by authorised executives of Procuring Entity with DSC. After the creation of the tender, a unique "tender ID" is automatically generated by the system. While creating/publishing the tender, the "bid openers" are identified as four officers (two from the procuring entity and two from the associated/integrated Finance) with a provision that tenders may be opened by any two of the four officers. The downloading of the tender may start immediately after the e-publication of NIT and can continue till the last date and time of bid submission. The bid submission will start the next day after the e-publication of NIT. In the case of limited and PAC/ single tenders, information should also be sent to target vendors/contractors through SMS/email by the portal; c) Registration of bidders on the portal: To submit the bid, bidders must register themselves online, as a one-time activity, on the e-procurement portal with a valid DSC. The registration should be in the name of the bidder, whereas the DSC holder may be either the bidder himself or a duly authorised person. The bidders will have to accept, unconditionally, the online user portal agreement, which contains all the terms and conditions of NIT, including commercial and general terms and conditions and other conditions, if any, along with an online undertaking in support of the authenticity of the declarations regarding facts, figures, information, and documents furnished by the bidder online; d) Bid submission: The bidders will submit their techno-commercial bids and price bids online. No conditional bid shall be allowed/ accepted. Bidders will have to upload scanned copies of various documents required for eligibility and all other documents as specified in NIT, techno- commercial bid in cover-I, and price bid in cover-II. To enable system-generated technocommercial and price comparative statements, such statements should be asked to be submitted in Excel formats. The bidder will have to give an online undertaking that if the information/declaration/scanned documents furnished with respect to eligibility criteria are found to be wrong or misleading at any stage, they will be liable to punitive action. EMD and tender fee (demand draft/banker’s cheque/pay order) shall be submitted online (by scanning) in electronic format while uploading the bid. This submission shall mean that EMD and tender fee are received electronically. However, for realisation, the bidder shall send the demand draft/banker’s cheque/pay order in original to the designated officer through post or by hand to reach by the time of tender opening. In case of exemption of EMD, the scanned copy of the document in support of exemption will have to be uploaded by the bidder during bid submission; e) Corrigendum, clarifications, modifications, and withdrawal of bids: All these steps are also carried out online mutatis mutandis, the normal tender process; f) Bid opening: Both the techno-commercial and price bids are opened online by the bid openers mentioned at the time of online tender creation. Relevant bidders can simultaneously take part in the bid opening online and can see the resultant bids of all bidders. The system automatically generates a technical scrutiny report and commercial scrutiny report in case of the technocommercial bid opening and a price comparative statement in case of price bid opening, which can also be seen by participating bidders online. Bid openers download the bids and the reports/statements and sign them for further processing. In case of opening of the price bid, the date and time of opening are uploaded on the portal, and shortlisted firms are also informed through system-generated emails and SMS alerts – after shortlisting of the technocommercially acceptable bidders; g) Shortfall document: Any document not enclosed by the bidder can be asked for, as in the case of the traditional tender, by the purchaser and submitted by the bidder online, provided it does not vitiate the tender process; h) Evaluation of techno-commercial and price bids: This is done offline in the same manner as in the normal tender process, based on system-generated reports and comparative statements; i) Award of contract: The award of the contract is done offline, and a scanned copy is uploaded on the portal. More needs to be done in this regard. The information and the manner of disclosure in this regard must conform to Section 4(1) (b), 4(2) and 4(3) of the RTI Act to enhance transparency and also to reduce the need for filing individual RTI applications. Therefore, the award must be published in a searchable format and be linked to its NIT j) Return of EMD: EMD furnished by all unsuccessful bidders should be returned through an epayment system without interest at the earliest after the expiry of the final bid validity period but not later than 30 (thirty) days after the conclusion of the contract. The EMD of the successful bidder should be returned after receipt of performance security, as requested in the contract.
2. In an auction, the bidders keep bidding higher, and the highest bid is accepted. In such a case, a Bid-Sheet is immediately signed by the Seller and Bidder’s representative, which, along with the delivery order, serves as a legal contract document. In e-auction, the Bid Sheet is generated with the DSCs of the Buyer and Seller.
4.0Disposal through e-Auction 4.1. Contractual Legal Aspects of Auction Sale of Scrap 1. Ministry/ Departments should decide the calendar for holding auctions/ tenders for groups of lots. A summary of this Auction Schedule is given publicity in Newspapers and on websites, indicating how to obtain/ download Auction Catalogues. For each Auction, a Catalogue is prepared containing details of the Schedule of Lots in the Auction, as well as General and Special Terms and Conditions of Sale (GTC and STC). In contractual terms, publishing an auction catalogue for the sale of scrap is equivalent to NIT/ MTD in tender for procurement and forms the basis of bids by the purchasers. In e-Auction, the General Conditions of Sale are available on the website, and the Special Conditions of Sale for each lot are hyperlinked to the Lot Description. In the case of Tender/ Physical Auctions, the Catalogue contains these in printed format.

GOODS_MANUAL

Appendix 3: Electronic Procurement (e-Procurement) and e-Auction (The details given in this appendix are generic in nature and are not prescriptive part of this Manual of Policies and Procedures. Procuring Entities may settle and decide the details with the service provider)
1.0Electronic procurement (e-procurement) E-procurement is the use of information and communication technology (especially the internet) by the buyer in conducting procurement processes with the vendors/ contractors for the acquisition of goods (supplies), works and services aimed at open, non-discriminatory, and efficient procurement through transparent procedures. The Procurement Policy Division, Department of Expenditure, MoF, has vide Office Memorandum no: 10/3/2012-PPC dated January 9, 2014, prescribed mandatory publishing of tenders through the e-procurement mode for tenders valued above Rupees two lakh.
In e-procurement, all processes of tendering have the same content as in normal tendering and are executed once the necessary changes have been made online by using the DSC as follows:
2.0Service Provider: A service provider is engaged to provide an e-procurement system covering the following: a) All steps involved, starting from hosting of tenders to determination of techno-commercially acceptable lowest bidder, are covered; b) The system archives the information and generates reports required for the management information system/decision support system; c) A helpdesk is available for online and offline support to different stakeholders; d) The system arranges and updates the Digital Signature Certificate (DSC) for Departmental users e) Different documents, formats, and so on are available for e-procurement systems.
a) Communications: Wherever traditional procedures refer to written communication and documents, the corresponding process in e-procurement would be handled either fully online by way of uploading/downloading/emails or automatically generated SMSs or else partly online and partly offline submission. It is advisable to move to full submissions online. More details would be available from the e-procurement service provider’s portal. In e-procurement, the tender fee, EMD, and documents supporting exemption from such payments are submitted in paper form to the authority nominated in the NIT, but scanned copies are to be uploaded, without which the bid may not be opened. In future, such payments may be allowed online also; b) Publishing of tenders: Tenders are published on the e-procurement portal by authorised executives of Procuring Entity with DSC. After the creation of the tender, a unique "tender ID" is automatically generated by the system. While creating/publishing the tender, the "bid openers" are identified as four officers (two from the procuring entity and two from the associated/integrated Finance) with a provision that tenders may be opened by any two of the four officers. The downloading of the tender may start immediately after the e-publication of NIT and can continue till the last date and time of bid submission. The bid submission will start the next day after the e-publication of NIT. In the case of limited and PAC/ single tenders, information should also be sent to target vendors/contractors through SMS/email by the portal; c) Registration of bidders on the portal: To submit the bid, bidders must register themselves online, as a one-time activity, on the e-procurement portal with a valid DSC. The registration should be in the name of the bidder, whereas the DSC holder may be either the bidder himself or a duly authorised person. The bidders will have to accept, unconditionally, the online user portal agreement, which contains all the terms and conditions of NIT, including commercial and general terms and conditions and other conditions, if any, along with an online undertaking in support of the authenticity of the declarations regarding facts, figures, information, and documents furnished by the bidder online; d) Bid submission: The bidders will submit their techno-commercial bids and price bids online. No conditional bid shall be allowed/ accepted. Bidders will have to upload scanned copies of various documents required for eligibility and all other documents as specified in NIT, techno- commercial bid in cover-I, and price bid in cover-II. To enable system-generated technocommercial and price comparative statements, such statements should be asked to be submitted in Excel formats. The bidder will have to give an online undertaking that if the information/declaration/scanned documents furnished with respect to eligibility criteria are found to be wrong or misleading at any stage, they will be liable to punitive action. EMD and tender fee (demand draft/banker’s cheque/pay order) shall be submitted online (by scanning) in electronic format while uploading the bid. This submission shall mean that EMD and tender fee are received electronically. However, for realisation, the bidder shall send the demand draft/banker’s cheque/pay order in original to the designated officer through post or by hand to reach by the time of tender opening. In case of exemption of EMD, the scanned copy of the document in support of exemption will have to be uploaded by the bidder during bid submission; e) Corrigendum, clarifications, modifications, and withdrawal of bids: All these steps are also carried out online mutatis mutandis, the normal tender process; f) Bid opening: Both the techno-commercial and price bids are opened online by the bid openers mentioned at the time of online tender creation. Relevant bidders can simultaneously take part in the bid opening online and can see the resultant bids of all bidders. The system automatically generates a technical scrutiny report and commercial scrutiny report in case of the technocommercial bid opening and a price comparative statement in case of price bid opening, which can also be seen by participating bidders online. Bid openers download the bids and the reports/statements and sign them for further processing. In case of opening of the price bid, the date and time of opening are uploaded on the portal, and shortlisted firms are also informed through system-generated emails and SMS alerts – after shortlisting of the technocommercially acceptable bidders; g) Shortfall document: Any document not enclosed by the bidder can be asked for, as in the case of the traditional tender, by the purchaser and submitted by the bidder online, provided it does not vitiate the tender process; h) Evaluation of techno-commercial and price bids: This is done offline in the same manner as in the normal tender process, based on system-generated reports and comparative statements; i) Award of contract: The award of the contract is done offline, and a scanned copy is uploaded on the portal. More needs to be done in this regard. The information and the manner of disclosure in this regard must conform to Section 4(1) (b), 4(2) and 4(3) of the RTI Act to enhance transparency and also to reduce the need for filing individual RTI applications. Therefore, the award must be published in a searchable format and be linked to its NIT j) Return of EMD: EMD furnished by all unsuccessful bidders should be returned through an epayment system without interest at the earliest after the expiry of the final bid validity period but not later than 30 (thirty) days after the conclusion of the contract. The EMD of the successful bidder should be returned after receipt of performance security, as requested in the contract.
2. In an auction, the bidders keep bidding higher, and the highest bid is accepted. In such a case, a Bid-Sheet is immediately signed by the Seller and Bidder’s representative, which, along with the delivery order, serves as a legal contract document. In e-auction, the Bid Sheet is generated with the DSCs of the Buyer and Seller.
4.0Disposal through e-Auction 4.1. Contractual Legal Aspects of Auction Sale of Scrap 1. Ministry/ Departments should decide the calendar for holding auctions/ tenders for groups of lots. A summary of this Auction Schedule is given publicity in Newspapers and on websites, indicating how to obtain/ download Auction Catalogues. For each Auction, a Catalogue is prepared containing details of the Schedule of Lots in the Auction, as well as General and Special Terms and Conditions of Sale (GTC and STC). In contractual terms, publishing an auction catalogue for the sale of scrap is equivalent to NIT/ MTD in tender for procurement and forms the basis of bids by the purchasers. In e-Auction, the General Conditions of Sale are available on the website, and the Special Conditions of Sale for each lot are hyperlinked to the Lot Description. In the case of Tender/ Physical Auctions, the Catalogue contains these in printed format.

Appendix 3 — GOODS_MANUAL

Original Rule Text

Appendix 3 — GOODS_MANUAL

Original Rule Text