EMD AND SD IN STORES CONTRACTS

EMD AND SD IN STORES CONTRACTS

Authority : 1)2018/TRANS CELL/STORES PROCUREMENT dated 02.01.2019  -  Click here

                      2) 2004/RS(G)/779/11/pt dated 27.03.2019   - Click here

EMD – Rates for Stores Contracts

Estimated value of Stores tender	EMD (rounded off to nearest higher Rs.10
Up to Rs. 5 Lacs	NIL
Above Rs. 5 Lacs to Rs. 20 Crores	2 % of estimated value of the Tender subject to maximum Rs. 20 Lacs
Above Rs. 20 Crores to Rs.100 Crores	1 % of estimated value of the Tender subject to maximum Rs. 50 Lacs
Above Rs.100 Crores	0.5 % of estimated value of the Tender subject to maximum Rs. 1 Crore

ü  Offers submitted without EMD shall be summarily rejected.

ü  Automatic online release of EMD of unsuccessful tenderers immediately after finalization of the Tender.  

EMD is exempted in the following cases

1.       Estimated value of Stores tender up to Rs.5 Lacs

2.       MSEs (Micro & Small Enterprises) registered for the Tender item.

3.       Other Railways and Govt departments

4.       Indian Ordinance factories

5.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are manufactured by them.

Exemption from EMD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.

Required	Headquarters	Field units (Divisions, Depots, construction etc)
Personal Approval	Authority competent to accept the Tender based on estimated value thereof, but not below the level of PCMM on case to case basis	Authority competent to accept the Tender based on estimated value thereof, but not below the concerned SAG level (ADRM, CWM, CAO etc) on case to case basis
Finance concurrence is	not required	required

SD – Security Deposit in Stores contracts

ü  10 % of the Contract value, subject to maximum of Rs.5 Crores.  Rounded off to nearest higher Rs. 10.  No ceiling for SD in Global Tenders for procurement of Stores.

ü  Shall remain valid for a period of 60 days beyond the date of completion of all contractual obligations.

ü  Deposit SD within 14 days of issue of LOA – Letter of Acceptance.

ü  No extension of time for submission of SD

ü  The EMD submitted by successful tenderer shall be automatically adjusted towards the SD.  The balance SD amount should be deposited within 14 days of the issue of LOA. 

ü  Otherwise (i.e., Balance SD not desosited), the EMD shall be forfeited and case be dealt with as that of withdrawal of offer by the Tenderer as per extant instructions.

ü  In case of failure by contractor to meet deliveries for any lot, Railways may cancel the contract for default part by forfeiting SD commensurate to that lot.

ü  Risk purchase clause shall not be applicable wherever SD clause is applicable.

ü  Wherever SD clause is not there, Risk purchase will be made as per extant guidelines.

SD is exempted in the following cases

1.       Estimated value of Stores tender up to Rs.1 Lac

2.       Other Railways and Govt departments

3.       Indian Ordinance factories

4.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are manufactured by them.

Exemption from SD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.

Required	Headquarters	Field units (Divisions, Depots, construction etc)
Personal Approval of	Authority competent to accept the Tender based on estimated value thereof, but not below the level of PCCM on case to case basis	Authority competent to accept the Tender based on estimated value thereof, but not below the concerned SAG level (ADRM, CWM, CAO etc) on case to case basis
Finance concurrence is	not required	required

LD – Liquidated damages for delayed supply

ü  0.5 % of the price of stores per week or part of the week of delay

ü  Upper limit – 10% of the value of contract (irrespective of delays)

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