Para 4.2.1 — NONCONSULT_MANUAL

4.2.2. Time-Based (Unit-rate) Contract 1. In Time-based (unit-rate) contracts, payments are based on agreed unit prices. This Type of Contract can be based either on input (more often) or output admeasurement. Payments are usually released every month for the quantum of inputs/ output actually performed. 2. In input admeasurement Time- based contracts, the Schedule of Requirement shall indicate the quantum, performance standards, frequency and duration of the Services/ Activities and also key inputs estimated to be required per month (Personnel, Equipment, Materials and Miscellaneous) for performing the Services/ Activities to the stipulated performance standards and quality. It shall also indicate the contract Period (one year unless otherwise stipulated) of the service required. The Bidders shall quote the unit rates of inputs and the quantum of inputs per month he considers necessary to perform the Services/ Activities to the required performance standards and quality. He shall also quote service charges and taxes over and above the cost of inputs. Financial evaluation shall be based on the total cost of all inputs (plus service charges and taxes) over the Contract Period. 3. In output admeasurement Time-based contracts, the Schedule of Requirement shall indicate the quantum of the Services, its performance standards, and the timeline/ milestones of its delivery. It shall also indicate the contract Period (one year unless otherwise stipulated) of the service required. Bidders shall quote per unit rate of the outputs of services, timelines/ milestones, and taxes. 4. In both variations (input or output admeasurement) of Time-based – Unit-rate contracts, the procuring entity may possess a realistic and validated database of rates for standard services or activities, supported by their own internal costing. In such cases, it may be

4.2.1. Lump Sum (Firm Fixed Price) Contract: 1. The lump sum (firm fixed price) contract is the simpler type of contract and wherever feasible; the Procuring Entity shall use this form of contract. In this type of contract service providers are required to quote a lump sum fixed price figure for completing the services in accordance with the given activity and services schedule. Service Provider’s proposal is deemed to include all prices - no arithmetical correction or price adjustments are allowed during evaluation. This Type of Contract is based on output admeasurement. Schedule of Requirement shall indicate the scope and quantum of Services required. 2. Lump sum service contracts are easy to administer because there is fixed price for a fixed scope and payments are linked to clearly specified outputs/ Services delivered. Bidders quote lump sum price for the required quantum of services. They may also be asked to quote unit rate for the service, to be used in case of variation etc. 3. Schedule of Requirement shall indicate the quantum of the Services, its performance standards, and the timeline/ milestones of its delivery. Contract may specify parts of payments to be released at specified timelines/ milestones. 4. In view of Risks mentioned below this type of contracts not many services are amenable to lump-sum type of contracts. Depending on the situation, such contracts may be used for transport services, logistics, clearing and forwarding, courier services, drilling, aerial photography, satellite imagery, mapping, and similar operations, and so forth. 5. Lump Sum Contracts - Risks and Mitigations: Please see Risk and Mitigations in Output admeasurement contracts in para 4.1.2-6).

Manual for Procurement of Non-Consultancy Services, 2025 advantageous to specify a ‘Schedule of Rates’ (SoR) along with an estimated volume for each service or activity in the Services and Activity Schedule. In the Bill of Quantities (BOQ), the entity can then request bidders to quote a single lump-sum percentage above or below the specified ‘Schedule of Rates’, on the lines of percentage based SoR contracts in Works. This approach simplifies financial evaluation, particularly when the number of services or activities is large. However, it is crucial to ensure that the Schedule of Rates is regularly updated to reflect current market conditions.

5. Both time-based contracts and indefinite delivery contracts are used when Lump sum contract is not feasible due to difficulties in specifying the scope/ length of services or the quantum of individual activities either because the inputs required for attaining the objectives of the requirement is difficult to assess or because the services are tied up to contracts/ activities by others for which the completion period may vary. As differentiated from the Indefinite Delivery type of contracts (discussed below), Time-based contracts are suitable for non-consultancy services that are continuously needed, while Indefinite Delivery type of contracts is suitable for services which are infrequently needed but service provider is needed to be always on beck and call.

6. Because of the risks and mitigations mentioned below, this type of contract is especially suitable for outsourcing of services, e.g. upkeep and maintenance of office/ buildings/ estates (other than Civil & Electrical Works, etc.), Security Services, Horticultural Services, Janitor/ Cooking/ Catering/ Management/ housekeeping Services for Hostels and Guest Houses, errand/ Messenger Services, transport/ logistics/ clearing and forwarding, courier services, etc.

7. Time-Based Contracts - Risks and Mitigations: Please see Risk and Mitigations in Input and Output admeasurement contracts in para 4.1.1-5) and 4.1.2-6) respectively.