Para 8.12 — NONCONSULT_MANUAL

NONCONSULT_MANUAL

8.12.2. Hardware as a Service (HaaS) When procuring IT Hardware as a Service (HaaS), the salient Non-consultancy service tender and evaluation conditions must be clearly defined to ensure compliance, competitiveness, and value for money. Given that HaaS involves the procurement of hardware on a subscription or lease basis, with service-level agreements (SLAs) and maintenance, the tender conditions must address both the hardware and the associated services. Suggested below are some generic conditions:
1. Scope of Services: a) Detailed Specifications: Clearly outline the specific IT hardware (e.g., desktops, laptops, servers, networking cabling/ equipment, UPS etc) required, along with their configurations and performance standards. Specify what software packages (including anti-virus and firewall software) would be included and that licence shall be kept valid during the contract period. b) Service Components: Define the service components such as installation, configuration, maintenance, repair/ replacement/ upgradation and dismantling/ removal at the end of contract period. c) Delivery and Deployment: Specify timelines for delivery, installation, and commissioning of hardware at specified locations. d) End-to-End Support: Include help desk, remote support, on-site support, and any additional managed services required as part of the contract. e) Training and Knowledge Transfer: Specify requirements for the service provider to train the procuring entity’s staff on using the hardware, managing configurations, basic troubleshooting and accessing support services. f) Security and Compliance Requirements g) Data Protection: If any data is handled by the hardware or service provider, stringent data protection clauses must be included, ensuring compliance with relevant Indian regulations such as the Information Technology Act, 2000 and its associated rules.
8.12. Procurement of IT Hardware as a Service (HaaS) 8.12.1. Procurement of Integrated IT Project Procurement of IT project (refer para 1.4-3-b)), involve considerable intellectual inputs, hence these should be handled as procurement of Consultancy Services. Such procurements are done using QCBS selection method with 80%:20% weightages for Quality: Price.
Manual for Procurement of Non-Consultancy Services, 2025 h) Cybersecurity Standards: Specify the required cybersecurity measures and standards that the service provider must adhere to (e.g., ISO/IEC 27001 certification). i) Audit Rights: Include clauses allowing the procuring authority to audit the service provider’s performance, data security, and compliance with the contract at regular intervals. j) Risk Management Plan: Require the bidder to submit a risk management plan to mitigate risks related to hardware failure, service disruptions, or cybersecurity threats. k) Ownership Model: Clarify that the hardware is provided on a service model (HaaS), and the ownership and risks remain with the service provider throughout the contract period. l) Service provider would keep the hardware insured at his cost. m) Asset Tracking: Specify requirements for tracking and monitoring hardware assets, including provisions for upgrading hardware during the contract period.
3. Service Level Agreement (SLA): a) Uptime Requirements: Define minimum uptime guarantees (e.g., 99.9% availability) and penalties for breaches. b) Response and Resolution Times: Set clear expectations for response times and resolution times for service requests and hardware issues (e.g., 4-hour response time for critical failures). c) Maintenance & Support: Include conditions for periodic preventive maintenance and replacement of faulty hardware at no additional cost. d) Monitoring and Reporting: Require regular performance reports from the service provider regarding hardware functionality, uptime, and SLA adherence. e) Penalties for Non-Compliance: Define penalties for failure to meet SLA requirements, delayed delivery, or non-compliance with other terms of the contract. Penalties could include financial deductions, contract termination, or blacklisting from future tenders.
4. Payment Terms: a) Subscription Model: Outline the payment model, typically on a monthly or quarterly subscription basis, with provisions for penalties in case of non-compliance with SLAs. b) Cost Inclusions: Define the total cost of the service, including hardware, software, service charges, taxes, transportation, and any other related costs. c) Milestone-based Payments: Payment may be linked to the achievement of predefined milestones such as delivery, installation, successful commissioning, periodic payment, dismantling/ removal at end of contract.
5. Qualification and Evaluation Criteria: a) Technical Qualification: i) Experience and Expertise: Bidders must have prior experience in providing IT Hardware as a Service (HaaS) to government departments or large enterprises. Minimum of 3 to 5 years’ experience in managing similar contracts.
2. Contract Period: a) Tenure: Specify the duration of the contract (e.g., 3 years, 5 years), indicating whether the contract is renewable and under what conditions. In case the Contract is decided on QCBS basis as per para 7.4.4, a longer contract period may be considered (say upto 10 years). b) Exit Clauses: Include provisions for early termination or contract extensions, based on performance.
Chapter 8: Special Types of Non-Consultancy Procurements ii) Certifications: Relevant certifications such as ISO 9001 (quality management) and ISO 20000 (IT service management) may be required to demonstrate adherence to quality and service standards. iii) OEM Authorization: If the bidder is not the Original Equipment Manufacturer (OEM), an authorization letter from the OEM must be submitted to ensure genuine hardware, warranty, and after-sales support.
b) Technical Evaluation Criteria: i) Compliance with Specifications: The bidder must meet all hardware configuration requirements, Service Level Agreements (SLAs), and support service expectations. ii) Scalability: The solution must be capable of accommodating future upgrades or expansions. iii) Vendor Performance: Past performance, compliance with SLAs, and customer satisfaction reports will be reviewed. iv) Demonstrations/PoC: Proof of Concept (PoC) or demonstrations may be required to assess functionality and performance of the proposed solution.
c) Financial Qualification and Evaluation: Financial Standing: The bidder must demonstrate strong financial health, with required turnover and profitability over the last 3 to 5 years, to ensure financial stability for the duration of the contract. d) Financial Evaluation Criteria: The evaluation will focus on the Total Cost of Ownership (TCO) over the contract period, including hardware subscription fees, service charges, penalties, and other associated costs. The Least Cost Selection (L1) method can be employed, ensuring all technical qualifications are met first. Alternatively, a Quality and Cost-Based Selection (QCBS) method can be used, where technical parameters and financial bids are weighted (e.g., 30% technical and 70% financial) to select the best value proposal.
1. The purpose of contract management is to ensure that the contract delivers the desired outcomes as per the terms and conditions of the contract. It also ensures that the payments made to the contractor match the performance. Implementation of the contract should be strictly monitored, and notices issued promptly whenever a breach of provisions occurs. Monitoring should ensure that contractor adhere to contract terms, performance expectations are achieved (such as timelines, quality of outcomes, discharge of Service Provider’s contracted obligations, and so on) and any problems are identified and resolved in a timely manner. Without a sound monitoring process, there can be no assurance that “we get what we pay and contract for and pay for only for what we get.”. Normally, the following issues are handled in management of Services Contracts:
a) Contract Administration: i) Issuing the notice to proceed; ii) Meetings and Reviews iii) Amendments/ variations to the contract; iv) Obligations Control: Monitoring that key experts and contracted resources are actually employed. v) Safeguards for handing over Procuring Entity materials/ equipment to contractors; vi) Resolving problems faced by service providers; vii) Dispute resolution and arbitration; viii)Breach of contract, remedies, and termination of services prior to the end of the contract; ix) Contract closure upon completion; b) Scope Control and Quality Assurance: i) Deciding on possible modifications to scope of work and issuing contract variations; ii) Monitor that all services are delivered as per contract. iii) Quality assurance: Review quality of outcomes at inception phase, mid-term and final phase. iv) Service Level Agreement (SLA) monitoring. c) Time Control: Monitoring progress and delays in timelines/ milestones of assignment; d) Cost Control: i) Billing, payment and monitoring the expenditure vis-à-vis progress; ii) Release of final payment and guarantees (if any) and closing the contract; e) Post contract evaluation:
2. Due to lack of physically/ tangibly measurable outcomes in Services contracts, intense and continuous monitoring of the Contract by the Procuring Entity is essential for the success of the assignment. Suitable provision for this should be made in the contracts which should also take care of the need to terminate/ penalize the Service provider or to suspend payments till satisfactory progress has not been achieved. A Contract Monitoring Committee (CMC) shall be formed by the Procuring Entity to monitor the Contract. The
Chapter 9: Monitoring Non-consultancy Services Contract 9.1. Contract Management 9.1.1. The Purpose of Contract Management
9.1.2. Contract Monitoring Committee – (CMC) 1. Rule 205 of GFR 2017 enjoins that the Ministry or Department be involved throughout the conduct of the contract and continuously monitor the performance of the contractor. The Procuring Entity shall constitute a CMC comprising at least three members at the appropriate level, including the user's representative, after the selection procedure is over for monitoring the progress of the contract. If considered appropriate, the Procuring Entity may select all or any of the members of TC as members of CMC. The Procuring Entity may also include individual experts from the government/private sector/ educational/research institute or individual service providers in the CMC. The cost of such members, if any, shall be borne by the Procuring Entity. The CMC shall be responsible for monitoring the progress of the assignment, to oversee that the assignment is carried out as per the contract, to assess the quality of the services, to accept/reject any part of assignment, to levy appropriate liquidated damages or penalty if the assignment is not carried out as per the contract and if the quality of services is found inferior and for any such deficiency related to the completion of the assignment.
Procuring Entity should also designate a counterpart Project Manager with adequate technical qualification, managerial experience, and power and authority as the nodal person to interact with the service provider’s team. A system of reporting may be developed so that a statement covering all ongoing Service contracts may be submitted within the Department in detail, so as to enable Management by Exception based on various Risk and Mitigation strategies pointed out at relevant process milestones in this manual. (Rule 195 of GFR 2017).
2. For the assignments which are very complex and/or are of highly technical nature, the Procuring Entity may decide to appoint another qualified Consultant to assist the CMC in carrying out its functions.

NONCONSULT_MANUAL

8.12.2. Hardware as a Service (HaaS) When procuring IT Hardware as a Service (HaaS), the salient Non-consultancy service tender and evaluation conditions must be clearly defined to ensure compliance, competitiveness, and value for money. Given that HaaS involves the procurement of hardware on a subscription or lease basis, with service-level agreements (SLAs) and maintenance, the tender conditions must address both the hardware and the associated services. Suggested below are some generic conditions:
1. Scope of Services: a) Detailed Specifications: Clearly outline the specific IT hardware (e.g., desktops, laptops, servers, networking cabling/ equipment, UPS etc) required, along with their configurations and performance standards. Specify what software packages (including anti-virus and firewall software) would be included and that licence shall be kept valid during the contract period. b) Service Components: Define the service components such as installation, configuration, maintenance, repair/ replacement/ upgradation and dismantling/ removal at the end of contract period. c) Delivery and Deployment: Specify timelines for delivery, installation, and commissioning of hardware at specified locations. d) End-to-End Support: Include help desk, remote support, on-site support, and any additional managed services required as part of the contract. e) Training and Knowledge Transfer: Specify requirements for the service provider to train the procuring entity’s staff on using the hardware, managing configurations, basic troubleshooting and accessing support services. f) Security and Compliance Requirements g) Data Protection: If any data is handled by the hardware or service provider, stringent data protection clauses must be included, ensuring compliance with relevant Indian regulations such as the Information Technology Act, 2000 and its associated rules.
8.12. Procurement of IT Hardware as a Service (HaaS) 8.12.1. Procurement of Integrated IT Project Procurement of IT project (refer para 1.4-3-b)), involve considerable intellectual inputs, hence these should be handled as procurement of Consultancy Services. Such procurements are done using QCBS selection method with 80%:20% weightages for Quality: Price.
Manual for Procurement of Non-Consultancy Services, 2025 h) Cybersecurity Standards: Specify the required cybersecurity measures and standards that the service provider must adhere to (e.g., ISO/IEC 27001 certification). i) Audit Rights: Include clauses allowing the procuring authority to audit the service provider’s performance, data security, and compliance with the contract at regular intervals. j) Risk Management Plan: Require the bidder to submit a risk management plan to mitigate risks related to hardware failure, service disruptions, or cybersecurity threats. k) Ownership Model: Clarify that the hardware is provided on a service model (HaaS), and the ownership and risks remain with the service provider throughout the contract period. l) Service provider would keep the hardware insured at his cost. m) Asset Tracking: Specify requirements for tracking and monitoring hardware assets, including provisions for upgrading hardware during the contract period.
3. Service Level Agreement (SLA): a) Uptime Requirements: Define minimum uptime guarantees (e.g., 99.9% availability) and penalties for breaches. b) Response and Resolution Times: Set clear expectations for response times and resolution times for service requests and hardware issues (e.g., 4-hour response time for critical failures). c) Maintenance & Support: Include conditions for periodic preventive maintenance and replacement of faulty hardware at no additional cost. d) Monitoring and Reporting: Require regular performance reports from the service provider regarding hardware functionality, uptime, and SLA adherence. e) Penalties for Non-Compliance: Define penalties for failure to meet SLA requirements, delayed delivery, or non-compliance with other terms of the contract. Penalties could include financial deductions, contract termination, or blacklisting from future tenders.
4. Payment Terms: a) Subscription Model: Outline the payment model, typically on a monthly or quarterly subscription basis, with provisions for penalties in case of non-compliance with SLAs. b) Cost Inclusions: Define the total cost of the service, including hardware, software, service charges, taxes, transportation, and any other related costs. c) Milestone-based Payments: Payment may be linked to the achievement of predefined milestones such as delivery, installation, successful commissioning, periodic payment, dismantling/ removal at end of contract.
5. Qualification and Evaluation Criteria: a) Technical Qualification: i) Experience and Expertise: Bidders must have prior experience in providing IT Hardware as a Service (HaaS) to government departments or large enterprises. Minimum of 3 to 5 years’ experience in managing similar contracts.
2. Contract Period: a) Tenure: Specify the duration of the contract (e.g., 3 years, 5 years), indicating whether the contract is renewable and under what conditions. In case the Contract is decided on QCBS basis as per para 7.4.4, a longer contract period may be considered (say upto 10 years). b) Exit Clauses: Include provisions for early termination or contract extensions, based on performance.
Chapter 8: Special Types of Non-Consultancy Procurements ii) Certifications: Relevant certifications such as ISO 9001 (quality management) and ISO 20000 (IT service management) may be required to demonstrate adherence to quality and service standards. iii) OEM Authorization: If the bidder is not the Original Equipment Manufacturer (OEM), an authorization letter from the OEM must be submitted to ensure genuine hardware, warranty, and after-sales support.
b) Technical Evaluation Criteria: i) Compliance with Specifications: The bidder must meet all hardware configuration requirements, Service Level Agreements (SLAs), and support service expectations. ii) Scalability: The solution must be capable of accommodating future upgrades or expansions. iii) Vendor Performance: Past performance, compliance with SLAs, and customer satisfaction reports will be reviewed. iv) Demonstrations/PoC: Proof of Concept (PoC) or demonstrations may be required to assess functionality and performance of the proposed solution.
c) Financial Qualification and Evaluation: Financial Standing: The bidder must demonstrate strong financial health, with required turnover and profitability over the last 3 to 5 years, to ensure financial stability for the duration of the contract. d) Financial Evaluation Criteria: The evaluation will focus on the Total Cost of Ownership (TCO) over the contract period, including hardware subscription fees, service charges, penalties, and other associated costs. The Least Cost Selection (L1) method can be employed, ensuring all technical qualifications are met first. Alternatively, a Quality and Cost-Based Selection (QCBS) method can be used, where technical parameters and financial bids are weighted (e.g., 30% technical and 70% financial) to select the best value proposal.
1. The purpose of contract management is to ensure that the contract delivers the desired outcomes as per the terms and conditions of the contract. It also ensures that the payments made to the contractor match the performance. Implementation of the contract should be strictly monitored, and notices issued promptly whenever a breach of provisions occurs. Monitoring should ensure that contractor adhere to contract terms, performance expectations are achieved (such as timelines, quality of outcomes, discharge of Service Provider’s contracted obligations, and so on) and any problems are identified and resolved in a timely manner. Without a sound monitoring process, there can be no assurance that “we get what we pay and contract for and pay for only for what we get.”. Normally, the following issues are handled in management of Services Contracts:
a) Contract Administration: i) Issuing the notice to proceed; ii) Meetings and Reviews iii) Amendments/ variations to the contract; iv) Obligations Control: Monitoring that key experts and contracted resources are actually employed. v) Safeguards for handing over Procuring Entity materials/ equipment to contractors; vi) Resolving problems faced by service providers; vii) Dispute resolution and arbitration; viii)Breach of contract, remedies, and termination of services prior to the end of the contract; ix) Contract closure upon completion; b) Scope Control and Quality Assurance: i) Deciding on possible modifications to scope of work and issuing contract variations; ii) Monitor that all services are delivered as per contract. iii) Quality assurance: Review quality of outcomes at inception phase, mid-term and final phase. iv) Service Level Agreement (SLA) monitoring. c) Time Control: Monitoring progress and delays in timelines/ milestones of assignment; d) Cost Control: i) Billing, payment and monitoring the expenditure vis-à-vis progress; ii) Release of final payment and guarantees (if any) and closing the contract; e) Post contract evaluation:
2. Due to lack of physically/ tangibly measurable outcomes in Services contracts, intense and continuous monitoring of the Contract by the Procuring Entity is essential for the success of the assignment. Suitable provision for this should be made in the contracts which should also take care of the need to terminate/ penalize the Service provider or to suspend payments till satisfactory progress has not been achieved. A Contract Monitoring Committee (CMC) shall be formed by the Procuring Entity to monitor the Contract. The
Chapter 9: Monitoring Non-consultancy Services Contract 9.1. Contract Management 9.1.1. The Purpose of Contract Management
9.1.2. Contract Monitoring Committee – (CMC) 1. Rule 205 of GFR 2017 enjoins that the Ministry or Department be involved throughout the conduct of the contract and continuously monitor the performance of the contractor. The Procuring Entity shall constitute a CMC comprising at least three members at the appropriate level, including the user's representative, after the selection procedure is over for monitoring the progress of the contract. If considered appropriate, the Procuring Entity may select all or any of the members of TC as members of CMC. The Procuring Entity may also include individual experts from the government/private sector/ educational/research institute or individual service providers in the CMC. The cost of such members, if any, shall be borne by the Procuring Entity. The CMC shall be responsible for monitoring the progress of the assignment, to oversee that the assignment is carried out as per the contract, to assess the quality of the services, to accept/reject any part of assignment, to levy appropriate liquidated damages or penalty if the assignment is not carried out as per the contract and if the quality of services is found inferior and for any such deficiency related to the completion of the assignment.
Procuring Entity should also designate a counterpart Project Manager with adequate technical qualification, managerial experience, and power and authority as the nodal person to interact with the service provider’s team. A system of reporting may be developed so that a statement covering all ongoing Service contracts may be submitted within the Department in detail, so as to enable Management by Exception based on various Risk and Mitigation strategies pointed out at relevant process milestones in this manual. (Rule 195 of GFR 2017).
2. For the assignments which are very complex and/or are of highly technical nature, the Procuring Entity may decide to appoint another qualified Consultant to assist the CMC in carrying out its functions.

Para 8.12 — NONCONSULT_MANUAL

Original Rule Text

Para 8.12 — NONCONSULT_MANUAL

Original Rule Text