Annexure 21 — NONCONSULT_MANUAL

Category: If Supplier is: Terminology: Supplier Acronym for this Para both MSE & Class-I local supplier "MSE Class-I local" M-C1 MSE but not Class-I local supplier "MSE but non-Class-l local" M-NC1 not MSE but is Class-I local supplier "Non-MSE but Class-I local" NM-C1 Supplier is neither MSE nor Class-I local "Non-MSE non-Class-l local" NM-NC1

2. The Class-I local suppliers, under PPP-Mll Order, participating in any government tender, may or may not be MSEs, as defined under the MSME Act. Similarly, MSEs participating in any government tender, may or may not be Class-I local suppliers. Suppliers may be categorised in following four broad categories for consideration or applicability of purchase preference:

3. The applicability of PPP-MSE Order and PPP-Mll Order in various scenarios, involving simultaneous purchase preference to MSEs and Class-I local suppliers under PPP-MSE Order and PPP-Mll Order respectively, shall be as under:

i) L-1 is "MSE Class-I local supplier" - 100% of the tendered quantity is to be awarded to L-1. ii) L-1 is "Non-MSE but Class-I local supplier" - Purchase preference is given to MSEs as per PPP-MSE Order. Balance quantity is to be awarded to the L-1 bidder.

b) Scenario 2: Items reserved exclusively for procurement from MSEs as per PPPMSE Order: These items are reserved exclusively for purchase from MSEs. Hence, non-MSEs are not eligible to bid for these items. Possible scenarios can be as under:

Annexure 21: Guidelines for Evaluation of Concurrent Application of the MSE and MII Preferences (Refer Para 7.4.6) 1. The concurrent application of the two procurement orders i.e., MSE Procurement Order of 2012 and PPP-MII Order may create confusion to the procuring entities on how to evaluate the bidders falling within the purview of both policies. To bring predictability both to the procuring entities as well as bidders, guidelines were issued by DoE. These guidelines are explained below. Examples to illustrate the application of these guidelines are given in the Annex to this Annexure.

Annexure 21: Guidelines for Evaluation of Concurrent Application of the MSE and MII Preferences i) L-1 is "MSE Class-I local supplier" - 100% of the tendered quantity is to be awarded to L-1 ii) L-1 is "MSE non-Class—l local supplier" - Purchase preference is to be given to “MSE Class-I local supplier” if any, as per PPP-Mll Order. Balance quantity is to be awarded to L-1 bidder. c) If items are neither notified for sufficient local capacity nor reserved for MSEs, then the process will be as follows: i) Scenario 3: Items covered under (para 1.10.2-3-b) of this manual) which are divisible items and both MSEs as well as Class-I local suppliers are eligible for purchase preference. Possible scenarios can be as under: 1) L-1 is "MSE Class-I local supplier" - 100% of the tendered quantity is to be awarded to L-1. 2) L-1 is "Non-MSE but Class-I local supplier" - Purchase preference is to be given to “MSE Non-ClassI Local Supplier”, if any if eligible, as per PPPMSE Order. Balance quantity is to be awarded to L-1 bidder. 3) L-1 is "MSE but non-Class-l local supplier" - Purchase preference is to be given to “Non-MSE Class-I local supplier”, if any if eligible, as per PPP-Mll Order. Balance quantity is to be awarded to L-1 bidder. 4) L-1 is "Non-MSE non-Class-l local supplier" - Purchase preference is to be given to MSEs as per PPP-MSE Order. Thereafter, purchase preference is to be given to Class-I local suppliers for "50% of the tendered quantity minus quantity allotted to MSEs above" as per PPP- Mll Order. For the balance quantity, contract is to be awarded to L-1 bidder. (Kindly refer to the illustrative example in the annex to this annexure). ii) Scenario 4: Items covered under (para 1.10.2-3-b) of this manual) which are non-divisible items and both MSEs as well as Class-I local suppliers are eligible for purchase preference. Possible scenarios can be as under: 1) L-1 is "MSE Class-I local supplier" - Contract is awarded to L-1. 2) L-1 is not "MSE Class-I local supplier" but the "MSE Class-I local supplier" falls within 15% margin of purchase preference Purchase preference is to be given to lowest quoting "MSE Class-I local supplier". If the lowest quoting "MSE Class-I local supplier" does not accept the L-1 rates, the next higher "MSE Class-I local supplier" falling within 15% margin of purchase preference is to be given purchase preference and so on. 3) If conditions mentioned in sub paras 1) and 2) above are not met i.e., L-1 is neither "MSE Class-I local supplier" nor "MSE Class-I local supplier" is eligible to take benefit of purchase preference, the contract is to be awarded/ purchase preference to be given in different possible scenarios as under:

h) L-1 is "MSE but non-Class-l local supplier" or "Non-MSE but Class-I local supplier" — Contract is to be awarded to L-1. i) L-2 is "Non-MSE non-Class-l local supplier" - First purchase preference to be given to MSE as per PPP-MSE Order. If MSE is not eligible/ does not accept - purchase preference to be given to Class- I Local supplier as per PPP-Mll Order. If Class-I Local supplier also not eligible/ does not accept — contract to be awarded to L-1. d) Scenario 5: Items reserved for both MSEs and Class-I local suppliers: These items are reserved exclusively for purchase from MSEs as well as Class-I local suppliers.

Hence, only "MSE Class-I local supplier" are eligible to bid for these items. NonMSEs/ CIass-II local suppliers/ Non-local suppliers cannot bid for these items. Hence the question of purchase preference does not arise. e) Scenario 6: Non-local suppliers, including MSEs falling in the category of Nonlocal suppliers, shall be eligible to bid only against Global Tender Enquiry.

A. Distribution-1 (D-1) 1) MSE bidders B (L2) and D (L4) are invited to match L1 price i.e., INR 100/-. 2) Both bidders B and D agree to match the L1 price. 3) The quantity of 25 nos. is distributed equally among bidders B and D i.e., 25/2=12.5 nos. (say 13 nos.)

S.# Bidder Rates quoted (INR) Rank Status of bidder D-1 D-2 D-3 D-4 1. A 100 L1 NM-C1 74 (L1) 75 (L1) 75 (L1) 100 (L1) 2. B 110 L2 M-NC1 Accepts 13 (MSE) Accepts 25 (MSE) Does not accept Does not accept 3. C 112 L3 NM-NC1 Not Eligible Not Eligible Not Eligible Not Eligible 4. D 115 L4 M-NC1 Accepts 13 (MSE) Does not accept Accepts 25 (MSE) Does not accept 5. E 118 L5 NM-C1 Not Eligible Not Eligible Not Eligible Not Eligible 6. F 120 L6 MC1 Not Eligible Not Eligible Not Eligible Not Eligible

i) L-1 is ‘Non-MSE but Class-I Local Supplier’ (NM-C1) (Scenario 3 -2) in Annexure 21) Details of bids received:

a) First purchase preference is to be given to MSEs as per PPP-MSE Order. b) MSE bidders to be invited for placement of 25% of tendered quantity of 100 Nos. i.e., 25 Nos. c) Those MSE bidders are to be invited whose quoted rates falls within 15% margin of purchase preference, to match the L1 price. d) Accordingly, the following distributions may happen:

Annex to Annexure 21: Examples of Evaluation of Concurrent Application of the MSE and MII Preferences 1. Given below are the examples to explain the different scenarios that may arise during the concurrent evaluation of MSE and Class-I local suppliers. The scenarios are further divided into the various sub-scenarios considered as ‘Distribution (D)’ to provide clarity on the quantity distribution, which shall take place among the MSE and Class-I local suppliers. Please note the following acronyms, in table in para 2 of Annexure 21. 2. Example explaining applicability in scenario explained in Scenario 3 in Annexure 21 (: Divisible items, both MSEs as well as Class-I local suppliers eligible for purchase preference.) Item — Desktop computer, Qty — 100 Nos.

C. Distribution-4 (D-4) 1) None of the MSE bidders agree to match the L1 price. No MSE preference given. 2) Entire quantity of 100 nos. computers is placed on the L1 bidder i.e., Bidder “A”, being a Class I bidder.

S.# Bidder Rates quoted (INR) Rank Status of bidder D-1 D-2 D-3 D-4 1. A 100 L1 M-NC1 50 (L1) 50 (L1) 50 (L1) 100 (L1) 2. B 110 L2 NM-NC1 Not Eligible Not Eligible Not Eligible Not Eligible 3. C 112 L3 NM-C1 Accepts 50 (MII) Does not accept Does not accept Does not accept 4. D 115 L4 M-NC1 Not Eligible Not Eligible Not Eligible Not Eligible 5. E 118 L5 NM-C1 Not Eligible Accepts 50 (MII) Does not accept Does not accept 6. F 120 L6 MC1 Not Eligible Not Eligible Accepts 50 (MII) Does not accept

Annex to Annexure 21: Examples of Evaluation of Concurrent Application of the MSE and MII Preferences 4) Bidders B and D are awarded the quantity of 13 nos. of computers each (i.e., a total of 26 nos. of computers placed on MSE bidders) 5) The remaining quantity of 74 nos. of computers (100-26) is placed on the L1 bidder.

B. Distribution-2 (D-2)/ Distribution-3 (D-3) 1) Either bidder B or bidder D agrees to match the L1 price. 2) 25 nos. quantity (25% of 100 nos.) is placed on the bidder (B or D). 3) The balance quantity of 75 nos. computers (100-25) is placed on the L1 bidder.

ii) L-1 is “MSE but non-Class-I Local Supplier (M-NC1) (Scenario 3 -3) in Annexure 21). Details of bids received:

a) First purchase preference is to be given to Class-I local supplier as per PPP-MII Order, for placement of 50% of tendered quantity of 100 Nos. i.e., 50 Nos. b) The Class-I local supplier is to be invited whose quoted rates falls within 20% margin of purchase preference, to match the L1 price. c) Accordingly, the following distributions may happen:

A. Distribution-1 (D-1) 1) Class-I bidder C (L3) is invited to match L1 price i.e., INR 100/-. 2) Bidders C agrees to match the L1 price. 3) Bidder C is awarded the quantity of 50 nos. 4) The balance quantity of 50 nos. of computers (100-50) is placed on the L1 bidder.

C. Distribution-4 (D-4) 1) None of the Class-I local suppliers agree to match the L1 price. No MII preference given. 2) Entire quantity of 100 nos. computers is placed on the L1 bidder i.e., Bidder ‘A’.

S.# Bidder Rates quoted (INR) Rank Bidder Status D-1 D-2 D-3 D-4 D-5 D-6 D-7 1. A 100 L1 NMNC1 37 (L1) 37 (L1) 37 (L1) 37 (L1) 37 (L1) 50 (L1) 75 (L1) 2. B 110 L2 NM-C1 Accept s 37 (MII) Accepts 38 (MII) Does not accept Does not accept Does not accept Accept s 50 (MII) Does not accept 3. C 112 L3 M-NC1 Accept s 13 (MSE) Accepts 25 (MSE) Does not accept Accepts 13 (MSE) Accepts 25 (MSE) Does not accept Accept s 25 (MSE) 4. D 115 L4 MC1 Accept s 13 (MSE) Does not accept Accepts 25 (MSE) + 38 (MII) Accepts 13 (MSE) + 37 (MII) Does not accept Does not accept Does not accept 5. E 118 L5 NM-C1 Not Eligible Not Eligible Not Eligible Not Eligible Does not accept Not Eligible Does not accept

iii) L-1 is "Non-MSE non-Class-l local supplier" (NM-NC1) (Scenario 3 -4) in Annexure 21). Details of bids received:

B. Distribution-2 (D-2)/ Distribution-3 (D-3) 1) The bidder C does not agree to match the L1 price, then the next Class-I bidder i.e., Bidder E is invited to match the L1 price. 2) Bidder E agrees to match the L1 price, and the 50 nos. quantity is awarded on Bidder E. 3) The balance quantity of 50 nos. computers (100-50) is placed on the L1 bidder ‘A’. 4) In case, Bidder E does not agree to match the L1 price, the next Class-I bidder is invited which is Bidder ‘F’. 5) Bidder F agrees to match the L1 price, then the 50 nos. of quantity are awarded to Bidder F, while the balance quantity of 50 nos. computers is placed on the L1 bidder ‘A’.

Annex to Annexure 21: Examples of Evaluation of Concurrent Application of the MSE and MII Preferences

A. Distribution-1 (D-1) 1) MSE bidders C and D are invited to match L1 price i.e., INR 100/-. Bidder F and G, being the MSE bidders are not invited since their quoted prices falls beyond the margin of preference of 15%. 2) Both bidders C and D agree to match the L1 price. 3) The quantity of 25 nos. is distributed equally among bidders B and D i.e., 25/2=12.5 nos. (say 13 nos.) 4) Bidders C and D are awarded the quantity of 13 nos. of computers each (i.e., a total of 26 nos. of computers placed on MSE bidders) 5) The balance quantity remaining is 74 nos. (100-26). Next, purchase preference shall be given as per MII Order for the placement of 50% of the balance quantity, i.e., for 37 nos. of computers (50% of 74). 6) Bidder B, being a Class-I local supplier, is invited to match the L1 price, since its quoted rate falls within margin of purchase preference of 20%. 7) Bidder B agrees to match the L1 price. The quantity of 37 nos. of computers is awarded to bidder ‘B’. 8) The balance quantity of 37 nos. of computers (100-26-37), is placed on the L1 bidder ‘A’.

6. F 120 L6 MC1 Not Eligible Not Eligible Not Eligible Not Eligible Accepts 38 (MII) Not Eligible Does not accept 7 G 120 L7 M-NC1 Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible

a) First purchase preference is to be given to MSEs as per PPP-MSE Order. b) MSE bidders having their quoted rates within 15% margin of purchase preference to be invited for placement of 25% of tendered quantity, subject to matching the L1 price. c) The next purchase preference is to be given to Class-I local supplier as per PPP-MII Order, whose quoted rates falls within 20% margin of purchase preference, to match the L1 price. d) Post these purchase preferences, the balance quantity is placed on the L1 bidder who is Non-MSE non-Class-I local supplier. e) Accordingly, the following distributions may happen:

B. Distribution-2 (D-2) 1) MSE bidder C and D are invited to match L1 price i.e., INR 100/-. 2) MSE bidders C agrees to match the L1 price, but MSE bidder D does not agree to match the L1 price. 3) The quantity of 25 nos. (25% of 100 nos.) is placed on the MSE bidder C. 4) The balance quantity remaining is 75 nos. (100-25). Next, purchase preference shall be given as per MII Order for the placement of 50% of the balance quantity, i.e., for 37.5 or say, 38 nos. of computers. 5) Bidder B, being the Class-I local supplier, is invited to match the L1 price, since its quoted rate falls within margin of purchase preference of 20%. 6) Bidder B agrees to match the L1 price. The quantity of 38 nos. of computers is awarded to bidder ‘B’.

D. Distribution-4 (D-4) 1) MSE bidder C and D are invited to match L1 price i.e., INR 100/-. 2) MSE bidders C and D agree to match the L1 price. The quantity of 25 nos. is distributed equally among bidders B and D i.e., 25/2=12.5 nos. (say 13 nos.) each. 3) The balance quantity remaining is 74 nos. (100-26). Next, purchase preference shall be given as per MII Order for the placement of 50% of the balance quantity, i.e., for 37 nos. of computers. 4) Bidder B, being the Class-I local supplier is invited to match the L1 price, since its quoted rate falls within margin of purchase preference of 20%. 5) Bidder B does not agree to match the L1 price. Hence, the next Class-I local supplier, bidder ‘D’ is invited to match the L1 price. Bidder D agrees and the quantity of 37 nos. of computers is awarded to bidder ‘D’. 6) The balance quantity of 37 nos. of computers (100-26-37), is placed on the L1 bidder ‘A’.

7) The balance quantity of 37 nos. of computers (100-25-38), is placed on the L1 bidder ‘A’. C. Distribution-3 (D-3) 1) MSE bidder C and D are invited to match L1 price i.e., INR 100/-. 2) MSE bidders C does not agrees to match the L1 price, but MSE bidder D agrees. 3) The quantity of 25 nos. (25% of 100 nos.) is placed on the MSE bidder D. 4) The balance quantity remaining is 75 nos. (100-25). Next, purchase preference shall be given as per MII Order for the placement of 50% of the balance quantity, i.e., for 37.5 or say, 38 nos. of computers. 5) Bidder B, being the Class-I local supplier is invited to match the L1 price, since its quoted rate falls within margin of purchase preference of 20%. 6) Bidder B does not agree to match the L1 price. Hence, the next Class-I local supplier, bidder ‘D’ is invited to match the L1 price. Bidder D agrees and the quantity of 38 nos. of computers is awarded to bidder ‘D’. 7) The balance quantity of 37 nos. of computers (100-25-38), is placed on the L1 bidder ‘A’.

E. Distribution-5 (D-5) 1) MSE bidder C and D are invited to match L1 price i.e., INR 100/-. 2) MSE bidders C agrees to match the L1 price, however, bidder D does not agree. Hence, the 25% of 100 nos. of computers i.e., 25 nos. are awarded to MSE bidder C. 3) The balance quantity remaining is 75 nos. (100-25). Next, purchase preference shall be given as per MII Order for the placement of 50% of the balance quantity, i.e., for 37.5, say 38 nos. of computers. 4) Bidder B, being the Class-I local supplier is invited to match the L1 price, since its quoted rate falls within margin of purchase preference of 20%. 5) Bidder B does not agree to match the L1 price. Hence, the next Class-I local supplier, bidder ‘D’ is invited to match the L1 price. Bidder D also does not agree to match the L1 price. The next class-I local supplier ‘E’ is invited that does not agree either. The next class-I local supplier ‘F’ is invited (who happens to be a MSE bidder as well, however, since the quoted price of bidder ‘F’ in case of MSE preference was beyond 15% margin of preference, hence it was

G. Distribution-7 (D-7) 1) MSE bidder C and D are invited to match L1 price i.e., INR 100/-. 2) MSE bidder ‘C’ agrees to match the L1 price only. Hence, 25% of the total tendered quantity i.e., 25 nos. of computers are awarded on the MSE bidder ‘C’. 3) The next purchase preference is to be given to Class-I local supplier as per the MII Order for the 50% of the balance quantity of 75 nos. i.e., for 37.5 or say 38 nos. of computers. First Class-I bidder invited is bidder ‘B’ to match the L1 price. Bidder ‘B’ does not agree to match the price. Subsequently, bidders ‘D,’ ‘E’ and ‘F’ are invited one by one, after each of the bidder does not agree to match the L1 price. 4) None of the Class-I local suppliers agree to match the L1 price. Hence, no purchase preference under MII order is given. 5) The balance quantity obtained, after the placement of 25 nos. quantity of computers on MSE bidders, is placed on bidder ‘A’ the L1 bidder for 75 nos. computers.

Sr. No. Name of bidder Rates quoted Price Ranking Status of bidder 1. A 100 L1 “Non-MSE but Class-I local supplier" 2. B 110 L2 "MSE but non- Class-I local supplier"

Annex to Annexure 21: Examples of Evaluation of Concurrent Application of the MSE and MII Preferences not invited to match the L1 price while going for MSE preference). For MII preference, the price quoted is within the margin of 20%. The bidder ‘F’ agrees to match the L1 price. The quantity of 38 nos. of computers is placed on bidder ’F’. 6) The balance quantity of 37 nos. of computers (100-25-38), is placed on the L1 bidder ‘A’.

3. Example explaining applicability in Scenario 4 in Annexure 21 (Non-Divisible items, both MSEs as well as Class-I local suppliers eligible for purchase preference.). Item — Software License, Unit — 100 Nos.

i) L-1 is “Non-MSE but Class-I Local Supplier” (Scenario 4 -2) in Annexure 21). Details of bids received:

F. Distribution-6 (D-6) 1) MSE bidder C and D are invited to match L1 price i.e., INR 100/-. 2) Neither of the MSE bidders (C and D) agrees to match the L1 price. Hence, no MSE purchase preference is given. 3) The next purchase preference is given to Class-I local supplier as per the MII Order for the 50% of the tendered quantity i.e., for 50 nos. of computers. Bidder ‘B’ being the lowest quoting Class-I local supplier with its quoted price falling within the margin of purchase preference of 20% is invited to match the L1 price. 4) Bidder ‘B’ agrees to match the L1 price. The quantity of 50 nos. of computers is awarded on bidder ‘B’. 5) The balance quantity of 50 nos. of computers (100-50) is placed on the L1 bidder ‘A’.

3. C 112 L3 "MSE Class-I local supplier" 4. D 115 L4 "MSE Class-I local supplier" 5. E 118 L5 "Non MSE non-Class-I local supplier" 6. F 120 L6 "MSE Class-I local supplier"

Sr. No. Name of bidder Rates quoted Price Ranking Status of bidder 1. A 100 L1 “Non-MSE non-Class-I local supplier" 2. B 110 L2 "MSE but non- Class-I local supplier" 3. C 112 L3 "Non MSE but Class-I local supplier" 4. D 115 L4 "MSE but non- Class-I local supplier" 5. E 118 L5 "Non MSE but Class-I local supplier " 6. F 120 L6 “MSE but non- Class-I local supplier” 7. G 125 L7 "MSE Class-I local supplier"

a) Here, purchase preference is to be given to the lowest quoting ‘MSE Class-I local supplier,’ provided its rate falls within the purchase preference of 15%. b) Bidder ‘C’ is MSE Class-I local supplier with price within the 15% margin of preference. Bidder C is invited to match the price of L1. If agreed, the entire order (100 nos. of software licenses) is to be placed on Bidder C. c) If lowest quoting ‘MSE Class-I local supplier’ (Bidder ‘C’) does not agree to match the L1 price, the next higher ‘MSE Class-I local supplier’ i.e., bidder ‘D’ is invited to match the L1 price. If agreed, the entire order is to be placed on bidder ‘D.’ d) Bidder ‘F’ though MSE Class-I local supplier, cannot be considered since its price falls beyond the 15% margin of preference.

ii) L-1 is “MSE but non-Class-I Local Supplier” (Scenario 4 -1) in Annexure 21): The approach explained in example 2.

(i) above to be followed.

iii) L-1 is neither “MSE Class-I Local Supplier” nor “MSE Class-I Local Supplier” is eligible (Scenario 4 -3) in Annexure 21), then:

1) L-1 is MSE but non-Class-I local supplier: Entire quantity (100 nos. of software license) is to be placed on the L-1; or 2) L-1 is Non-MSE but Class-I local supplier: Entire quantity (100 nos. of software license) to be placed on the L-1. iv) L-1 is “Non-MSE non-Class-I Local Supplier”. Details of bids received:

Manual for Procurement of Non-Consultancy Services, 2025

Annex to Annexure 21: Examples of Evaluation of Concurrent Application of the MSE and MII Preferences falls within the purchase preference of 15%. If Bidder ‘B’ agrees, the entire order is to be placed on bidder ‘B.’ 2) If bidder ‘B’ does not agree, bidder ‘D’ shall be invited (price falling within the purchase preference of 15%), to match the L-1 price. If agreed, entire order to be placed on bidder ‘D.’ 3) If bidder ‘D’ also does not agree, now, purchase preference to Class-I local supplier shall be provided. Bidder ‘F’ cannot be considered since the quoted price is beyond the margin of preference of 15%. 4) Bidder ‘C’ is invited to match the L-1 price (quoted price within the purchase preference of 20%, as per the PPP-MII Order). If bidder ‘C’ agrees, the entire order is to be placed on ‘C.’ 5) If bidder ‘C’ does not agree, bidder ‘E’ to be invited, as the quoted price is within the purchase preference of 20%. If bidder ‘E’ agrees, the entire order is to be placed on bidder ‘E.’

If the non MSE but Class-I local supplier, bidder ‘E’ also does not agree to match the L-1 price, then the entire order is to be placed on the L-1 i.e., bidder ‘A’.