Para 4.4 — GOODS_MANUAL

GOODS_MANUAL

2. Items amenable to Rate Contract: The following types of items can be advantageously procurement through rate Contracts:
a) Goods that are regularly or repetitively required by more than one procuring entity/organisation. b) The quantities required cannot be accurately forecast. c) Individual requirements of procuring entities may be small, but the total aggregate requirements of all the procuring entities are more than Rs 50 Lakhs per annum. d) The item has detailed specifications, drawings, and descriptions. e) Prices of the items are stable, or if prices are variable, they can be determined through a price variation clause. f) Items are not scarce/critical/’perpetually in short supply’ goods or services. g) Demand for the item is not seasonal since Rate contract holders may shy away from supplying the item during high seasonal demands and dump supplies during low demand season. h) Spares used for maintenance of expensive equipment/machines, from OEMs to facilitate uninterrupted supply of genuine spares. i) Consumables used by Advanced Research, Development and Scientific Institutes/ Organisations of the Government of India (e.g., glass wares, plastic wares, chemicals, bio chemicals etc. – the examples are illustrative, not exhaustive).
4.4. Rate Contract (RC)/ Framework Agreement (FA) 1. Definition: A Rate Contract (commonly known as RC) is an agreement between the purchaser and the Supplier for the supply of specified goods (and allied services, if any) at a set price and terms & conditions (as incorporated in the agreement) during the period covered by the Rate Contract. RC is most frequently used in the procurement of goods but can also be used mutatis mutandis in works, services, and consultancy – where it is commonly known as a Framework Agreement (FA). No quantity is mentioned, nor is any minimum drawable quantity guaranteed in the Rate Contract. The Rate Contract is a standing offer from the supplier firm. The firm and/or the purchaser are entitled to withdraw/cancel the Rate Contract by serving an appropriate notice on each other, giving suitable notice (say thirty days. However, once a supply order (also called withdrawal order) is placed in terms of the rate contract, during the validity period of the rate contract on the Supplier for the supply of a definite quantity, that supply order becomes a valid and binding contract.
a) The benefit to Users: i) Competitive and economical price due to aggregation of demands. ii) Saves time, effort, person-hours, and related costs involved in the time-consuming and repetitive tender process. It thus reduces lead time for procurement. iii) Availability of quality goods with full quality assurance backup. iv) Enables procurement as and when required and thus reduces inventory carrying cost. v) It is advantageous even to small users and those located in remote areas. vi) Provides one single point of contact to procure such items.
3. Merits of Rate Contract: The Rate Contract system provides numerous benefits to both the Purchaser (i.e., user) and the Supplier as indicated below:
b) Benefit to Suppliers: i) Reduces marketing costs and efforts. ii) Eliminates repetitive tendering and follow-up actions with multiple authorities. iii) Provides single-point contact for Govt. supplies. iv) Aggregation of Govt. demand leads to economic production. v) Improves the credentials of the company. vi) Promotes quality discipline.
4.5. Conduct of Auction 1. The seller cannot close/cancel an auction once it starts. It can be cancelled/ amended prior to the start of the auction by requesting cancellation. The following information will be present on the auction floor web page: a) Opening date and time, b) Closing date and time, c) Item number, d) Item name, hyper-linked to relevant details containing duties, etc., /particular terms of lifting, etc.; e) Quantity and unit of measurement; f) Location of material/item; g) Last bid or basic price, if any; h) Bidders’ bid in Rs. /unit i) Bid history. 2. The closing time of an auction shall automatically be extended by the period indicated in the Auction Catalogue for all auctions if the bid continues (e.g., in case the closing time is 5.30 pm on any particular date and if a bidder bids at 5.29 pm then the closing time will be automatically extended). The maximum number of auto extensions is also specified. 3. Bidders can indicate the bid price through their login. A bid, once given, cannot be retracted. Conditional offers will not be accepted/entertained. Each bidder will have the option to declare his maximum bid value (which cannot be viewed by other bidders), up to which his automatic bidding will continue. 4. The seller can monitor the auction activity and view the bidding history of the live auctions, reserve prices (reserve price can only be viewed by the seller and no one else), and other features. However, the seller will get an automated email once the auction ends with detailed information on the auction (highest bidder, subject to approval items, rejected items). 5. The respective items will be marked "sold" after the closing of the auction when the highest bid is greater than the reserve price, and an automatic intimation will be sent online to the concerned buyer to make the payment. 6. If the bid price matches the limits specified for inclusion in STA, then it shall be shown under the STA category, and the seller will be informed accordingly. In the case of STA, the seller must convey the acceptability of the bid amount or otherwise of the bid value to eASP as well as the bidder within three days (excluding holidays) of the close of the auction. 7. In the case of “Sold” or STA, a Bid-Sheet is displayed, indicating the details of the accepted bid, which is printed and shows the digital signatures of the Auction Supervising Officer and the Bidder. As mentioned before, this serves the role of the legal Contract document. 8. If the reserve price is not met at the close of the auction, the auction closes without a winning bidder. At the seller’s request, eASP will arrange for the inclusion of the unsold item in the next auction.
4.4. Buyer Eligibility All prospective e-auction sellers and bidders will have to register themselves by filling in the relevant details online. Bidders also have to pay the specified non-refundable registration fee (usually Rs.10,000 – Rupees ten thousand) offline. Only registered bidders will be able to access the auction floor. The auction notification will, however, be seen by all internet users. If it is found that the bidder is not adhering to the terms and conditions of the e-auction and also indulging in any malpractices either himself or through his agents, deputies, or observer, such a bidder is liable to be blacklisted, and appropriate action will be taken as deemed fit by the seller. There are various reports available by which sellers can rate a bidder. The seller can restrict or blacklist a buyer from bidding by making a formal request to eASP.
4.6. Earnest Money Deposit EMD is payable within seven calendar days from the date of closing of the e-auction (excluding the date of closing) by the successful bidder. EMD is equivalent to 25 per cent of the material value of the accepted lots and 10 (ten) per cent of the material value for STA lots in the form of a demand draft drawn in favour of the authority mentioned in the auction catalogue. On receipt of the EMD by eASP, an acceptance letter/sale order will be issued for sold lots. In case of failure to pay the EMD in time, the party's login will be deactivated in addition to other actions as deemed fit, and the offer will stand withdrawn.
4.7. Payment of Balance Sale Value (BSV) In case of sold/accepted lots and lots taken on an STA basis, the balance payment must be made within 15 (fifteen) calendar days from the date of the acceptance letter/sale order (excluding the date of issue of the acceptance letter/sale order), by way of a demand draft as per the following manner:
a) Commission percentage as per STC/ GTC/ BSTC to be paid in favour of eASP by way of demand draft/pay order; b) The balance amount (after deducting the EMD and amount payable to eASP) plus applicable GST/duties, income tax and other charges, if any, must be paid in favour of the authority mentioned in the auction catalogue; c) In case of delay, an overdue payment charge @ one per cent per week or part thereof will be charged up to two weeks only and thereafter, the EMD will stand forfeited without any notice d) Tax Collected at Source (TCS) at the applicable percentage (presently@ one per cent) of the gross value (material value + excise duty + GST + any other applicable taxes/duties/cess, etc.) may be deducted by the purchaser, and a TDS certificate may be given. A surcharge of 10% (ten per cent) on TCS and a further Education cess of 3% (three per cent) is leviable on the TCS+ Surcharge.

GOODS_MANUAL

2. Items amenable to Rate Contract: The following types of items can be advantageously procurement through rate Contracts:
a) Goods that are regularly or repetitively required by more than one procuring entity/organisation. b) The quantities required cannot be accurately forecast. c) Individual requirements of procuring entities may be small, but the total aggregate requirements of all the procuring entities are more than Rs 50 Lakhs per annum. d) The item has detailed specifications, drawings, and descriptions. e) Prices of the items are stable, or if prices are variable, they can be determined through a price variation clause. f) Items are not scarce/critical/’perpetually in short supply’ goods or services. g) Demand for the item is not seasonal since Rate contract holders may shy away from supplying the item during high seasonal demands and dump supplies during low demand season. h) Spares used for maintenance of expensive equipment/machines, from OEMs to facilitate uninterrupted supply of genuine spares. i) Consumables used by Advanced Research, Development and Scientific Institutes/ Organisations of the Government of India (e.g., glass wares, plastic wares, chemicals, bio chemicals etc. – the examples are illustrative, not exhaustive).
4.4. Rate Contract (RC)/ Framework Agreement (FA) 1. Definition: A Rate Contract (commonly known as RC) is an agreement between the purchaser and the Supplier for the supply of specified goods (and allied services, if any) at a set price and terms & conditions (as incorporated in the agreement) during the period covered by the Rate Contract. RC is most frequently used in the procurement of goods but can also be used mutatis mutandis in works, services, and consultancy – where it is commonly known as a Framework Agreement (FA). No quantity is mentioned, nor is any minimum drawable quantity guaranteed in the Rate Contract. The Rate Contract is a standing offer from the supplier firm. The firm and/or the purchaser are entitled to withdraw/cancel the Rate Contract by serving an appropriate notice on each other, giving suitable notice (say thirty days. However, once a supply order (also called withdrawal order) is placed in terms of the rate contract, during the validity period of the rate contract on the Supplier for the supply of a definite quantity, that supply order becomes a valid and binding contract.
a) The benefit to Users: i) Competitive and economical price due to aggregation of demands. ii) Saves time, effort, person-hours, and related costs involved in the time-consuming and repetitive tender process. It thus reduces lead time for procurement. iii) Availability of quality goods with full quality assurance backup. iv) Enables procurement as and when required and thus reduces inventory carrying cost. v) It is advantageous even to small users and those located in remote areas. vi) Provides one single point of contact to procure such items.
3. Merits of Rate Contract: The Rate Contract system provides numerous benefits to both the Purchaser (i.e., user) and the Supplier as indicated below:
b) Benefit to Suppliers: i) Reduces marketing costs and efforts. ii) Eliminates repetitive tendering and follow-up actions with multiple authorities. iii) Provides single-point contact for Govt. supplies. iv) Aggregation of Govt. demand leads to economic production. v) Improves the credentials of the company. vi) Promotes quality discipline.
4.5. Conduct of Auction 1. The seller cannot close/cancel an auction once it starts. It can be cancelled/ amended prior to the start of the auction by requesting cancellation. The following information will be present on the auction floor web page: a) Opening date and time, b) Closing date and time, c) Item number, d) Item name, hyper-linked to relevant details containing duties, etc., /particular terms of lifting, etc.; e) Quantity and unit of measurement; f) Location of material/item; g) Last bid or basic price, if any; h) Bidders’ bid in Rs. /unit i) Bid history. 2. The closing time of an auction shall automatically be extended by the period indicated in the Auction Catalogue for all auctions if the bid continues (e.g., in case the closing time is 5.30 pm on any particular date and if a bidder bids at 5.29 pm then the closing time will be automatically extended). The maximum number of auto extensions is also specified. 3. Bidders can indicate the bid price through their login. A bid, once given, cannot be retracted. Conditional offers will not be accepted/entertained. Each bidder will have the option to declare his maximum bid value (which cannot be viewed by other bidders), up to which his automatic bidding will continue. 4. The seller can monitor the auction activity and view the bidding history of the live auctions, reserve prices (reserve price can only be viewed by the seller and no one else), and other features. However, the seller will get an automated email once the auction ends with detailed information on the auction (highest bidder, subject to approval items, rejected items). 5. The respective items will be marked "sold" after the closing of the auction when the highest bid is greater than the reserve price, and an automatic intimation will be sent online to the concerned buyer to make the payment. 6. If the bid price matches the limits specified for inclusion in STA, then it shall be shown under the STA category, and the seller will be informed accordingly. In the case of STA, the seller must convey the acceptability of the bid amount or otherwise of the bid value to eASP as well as the bidder within three days (excluding holidays) of the close of the auction. 7. In the case of “Sold” or STA, a Bid-Sheet is displayed, indicating the details of the accepted bid, which is printed and shows the digital signatures of the Auction Supervising Officer and the Bidder. As mentioned before, this serves the role of the legal Contract document. 8. If the reserve price is not met at the close of the auction, the auction closes without a winning bidder. At the seller’s request, eASP will arrange for the inclusion of the unsold item in the next auction.
4.4. Buyer Eligibility All prospective e-auction sellers and bidders will have to register themselves by filling in the relevant details online. Bidders also have to pay the specified non-refundable registration fee (usually Rs.10,000 – Rupees ten thousand) offline. Only registered bidders will be able to access the auction floor. The auction notification will, however, be seen by all internet users. If it is found that the bidder is not adhering to the terms and conditions of the e-auction and also indulging in any malpractices either himself or through his agents, deputies, or observer, such a bidder is liable to be blacklisted, and appropriate action will be taken as deemed fit by the seller. There are various reports available by which sellers can rate a bidder. The seller can restrict or blacklist a buyer from bidding by making a formal request to eASP.
4.6. Earnest Money Deposit EMD is payable within seven calendar days from the date of closing of the e-auction (excluding the date of closing) by the successful bidder. EMD is equivalent to 25 per cent of the material value of the accepted lots and 10 (ten) per cent of the material value for STA lots in the form of a demand draft drawn in favour of the authority mentioned in the auction catalogue. On receipt of the EMD by eASP, an acceptance letter/sale order will be issued for sold lots. In case of failure to pay the EMD in time, the party's login will be deactivated in addition to other actions as deemed fit, and the offer will stand withdrawn.
4.7. Payment of Balance Sale Value (BSV) In case of sold/accepted lots and lots taken on an STA basis, the balance payment must be made within 15 (fifteen) calendar days from the date of the acceptance letter/sale order (excluding the date of issue of the acceptance letter/sale order), by way of a demand draft as per the following manner:
a) Commission percentage as per STC/ GTC/ BSTC to be paid in favour of eASP by way of demand draft/pay order; b) The balance amount (after deducting the EMD and amount payable to eASP) plus applicable GST/duties, income tax and other charges, if any, must be paid in favour of the authority mentioned in the auction catalogue; c) In case of delay, an overdue payment charge @ one per cent per week or part thereof will be charged up to two weeks only and thereafter, the EMD will stand forfeited without any notice d) Tax Collected at Source (TCS) at the applicable percentage (presently@ one per cent) of the gross value (material value + excise duty + GST + any other applicable taxes/duties/cess, etc.) may be deducted by the purchaser, and a TDS certificate may be given. A surcharge of 10% (ten per cent) on TCS and a further Education cess of 3% (three per cent) is leviable on the TCS+ Surcharge.

Para 4.4 — GOODS_MANUAL

Original Rule Text

Para 4.4 — GOODS_MANUAL

Original Rule Text