Para 7.7.3 — GOODS_MANUAL

7.7.4 Acknowledgement of Contract by Successful Bidder and Execution 1. After the successful bidder is notified that his bid has been accepted, he will be sent an agreement in duplicate for signature and return, incorporating all agreements between the parties. 2. The supplier should acknowledge and unconditionally accept, sign, date and return the agreement within 14 (fourteen) days from the date of issue of the contract in case of OTE and 28 (twenty-eight) days in case of GTE. Such acknowledgements may not be required in low-value contracts below Rupees two and a half Lakh or when the bidder’s offer has been accepted in its entirety without any modifications. While acknowledging the contract, the supplier may raise issues and/or ask for modifications against some entries in the contract; such aspects shall be immediately investigated for necessary action, and thereafter, the supplier’s unconditional acceptance of the contract must be obtained. If both parties (Procuring Entity and the supplier) simultaneously sign the contract across the table, further acknowledgement from the supplier is not required. It should also be made known to the successful bidder that in case he does not furnish the required performance security or does not sign the contract within the stipulated target dates, such non-compliance will constitute sufficient ground for punitive actions against it, as mentioned in para 7.6.2-3 above. The procuring Entity may also consider getting the contract digitally signed. 3. All contracts shall be signed and entered into after receipt and verification of the requisite performance security by an authority empowered to do so by or under the orders of the President of India in terms of Article 299 (1) of the Constitution of India. The words “for and on behalf of the President of India” should follow the designation appended below the signature of the officer authorised on this behalf. The various classes of contracts and assurances of property, which different authorities may execute, are specified in the DFPR. No contract on behalf of an organisation or Procuring Entity should be entered into by any authority which has not been empowered to do so under the orders of the Government.

7.7.3 Performance Security The supplier receiving the LoA is required to furnish the required performance security, if it is part of tender conditions, in the prescribed form within the period prescribed in the tender document (generally 14 (fourteen) to 28 (twenty-eight), depending on the amount), as per para 6.1.2 above. In case performance security is not submitted within the stipulated time, the procuring entity may pursue the contractor up to a reasonable grace period for submission. In case the firm fails to submit the requisite Performance Security even thereafter or fails to sign the contract, it may be treated as a withdrawal of an offer by the L1 bidder, and the tender may be reinvited (refer para 7.6.2-3), besides taking necessary punitive actions including forfeiture of EMD, deregistration and debarment against such bidders.