The General Conditions for Services, 2018- Key points for MCQ
Click for the latest copy of GCC for Services, 2018
The GCC for Services - Issued by the Transformation Cell
GCC for Services document prepared based on:
The recommendations of the EDs Committee
Approval of Civil Engineering, Transformation & Legal Directorates with Finance Concurrence and finally by the Railway Board
Examples of various types of Contracts:
Service Contracts: Any subject matter of procurement other than Goods or works
Physical maintenance
Housekeeping
Professional
Intellectual
Training
Consultancy
Advisory services
Works Contracts: The work contemplated for delivery of services as per Drawings & Schedules set forth in the Bid forms & required to be executed according to the specification
Earnings Contracts:
Operating 4-wheeler / 2-wheeler stands
Publicity on the Platforms / Trains
Running various types of stalls on the Platforms
SOR stands for Schedule Of Rates
Two Packet tender - Applicable for - Period of 18 Months and above
Bidders must not have suffered bankruptcy/insolvency during the last ___ - 5 years
JV firms participated Tendering process as Bidders:
Lead Member - Should be holding of ______ - Above 51 %
If JV is up to 3 Members, the other member’s share is ______ - Above 20%
If JV is more than 3 Members, the other member’s share is _____ - Above 10 %
If JV with Foreign members, the lead members have to be ______ - Indian
QCBS - For consulting services, where the quality of consultancy is of prime concern such as Management counseling, feasibility studies, etc.
Stands for Quality & Cost Based Selection
Applicable for Tenders valued - Rs. 50 Lakhs and above
The ratio of Quality & Cost is as follows:
The bid with the highest weighted combined score (Quality & Cost) shall be selected
Weightage of Technical parameters i.e., Non-financial parameters in no case should exceed ______ - 80 %
Eligibility conditions - Work Experience
35 % of Advertised Value in the previous 3 FYs and Current FY
Satisfactorily completed a Similar Single Service Contract (which is specified by the competent authority. )
Satisfactorily completed means - Subject to payment of Bills - amounting to at least 35% of the advertised value of the Bid
By Private Individuals - Not accepted
By Public listed companies / Private ltd companies / Trusts whose annual turnover is Rs. 500 Crores and above.
Eligibility - Financial Turnover
150 % of the Bid value in the last 3 FY plus the current year
Support document: Audited Balance Sheet duly certified by CA with Stamp, Signature & Membership Number
T2 Liquidity - 5% of estimated Bid value - Access to available liquid assets, Lines of Credit & other Financial means to meet Cash Flow
T2 Liquidity - From Scheduled Banks only
T2 Liquidity - Net Current Assets + Bank references
T2 Liquidity - If Current Assets are negative, only Bank references were considered
Action - In case the submitted documents by the Bidder are found to be False / Forgery
Before awarding the Contract: Bid is summarily rejected, Forfeit of EMD & other legal action if any
After awarding the Contract: Forfeit of PG & Dues if any.
Evaluation of the Financial bids:
If the two bidders are the lowest and the same: The bid whose technically more sound will be selected
If the two bidders are the lowest and same - Financially & Technically: The Bidder whose cumulative Annual Financial Turnover in the last 3 Previous FYs + Current Year shall be considered
If the Bidder expires - after submission of offer / after acceptance of his offer - Awarding of the Contract is canceled.
If the Successful L1 Bidder withdraws or fails to sign the Agreement or fails to provide the PG - May award the Contract to the L2, if he matches the price bid of L1 (subject to ensuring no Cartelization)
EMD - Earnest Money Deposit
Earnest means – Showing sincere interest/seriousness in participating in the Tender process if awarded executing the Work for Organizations like Indian Railways.
EMD – means an earnest payment as a specific form of Deposit to demonstrate that the applicant is serious/sincere to participate in the Tender work and complete the work for organizations like Indian Railways if awarded.
Rounded off to the nearest 10 Rupees. (In case of Works - Rs. 100)
EMD Rates are as follows.
Maximum EMD is Rs. One Crore only.
Examples of calculation of EMD under different circumstances: -
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Tender Value of Work - Rs. 25,60,520
2 % of Rs.25,60,520 - Rs. 51,210
Answer is Rs. 51,210 /-
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Value of Work - Rs. 4,00,00,000 ( Rs. Four Crores)
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Value of Work - Rs. Two Hundred Crores
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EMD is applicable to all modes of Tenders such as Open, Limited, Single, etc.
Exemption for Submission of Bid Security as well as the cost of Tender form (Bid)
MSEs registered with:
District Industries Centres
Khadi & Village Industries Commission
KVIB - Khadi & Village Industries Board
NSIC - National Small Industries Corporation
Directorate of Handicraft & Handloom
Any other body specified by the Ministry of MSME
“STARTUPS” by ____________
Forfeit of EMD:
If the successful Tenderer resile/abandon his offer, Or
Modify the terms and conditions thereof in a manner not acceptable to the Railways or
If the successful tenderer is unable to submit the PG – Performance Guarantee within the validity of time.
Bid / Tender - shall be signed by the individual legally authorized to enter into commitments on their (firm) behalf.
7 days - The Bidder whose bid is accepted shall be required to appear in person at the Railways office to execute the Contract document within 7 days after the receipt of notice issued by the Railway that such documents are ready.
Failure to do so (signing the Agreement) shall constitute a breach of the Agreement - Consequences are 1. Determine that such bidder has abandoned Contract 2. Forfeit of EMD 3. Forfeit of PG - Performance Guarantee
Contract Document (Agreement) - 3 copies - Signed by the Competent Authority & the Contractor
1st copy - Contractor
2nd copy - Finance Dept
3rd copy - Contract Manager (Executive)
Railway Passes - No Railway passes - to the Contractor & its employees.
Wherever required, “Authority for entering a restricted area or Authority for on Board Services” shall be provided (like in OBHS - On Board Housekeeping Services)
PG - Performance Guarantee:
10 % of the Contract Value
4 separate parts i.e., each 2.5% of the Contract Value
Due period: 30 days from the LOA
60 days - If the Contractor fails to furnish after 60 days from the LOA, a notice will be served to the Contractor to pay the same within 90 days from LOA
60th day is Bank Holiday or office closure, the next working should be considered as the last day for submission of PG
15% - Penal Interest - 31st day to the Day of submitting PG
The consequences of failure to submission of PG within 90 days are:
Forfeit of EMD
Forfeit of other dues
Debarrred from participating in re-tender for that work.
The decision of the Authority of signing the Contract Agreement is final.
PG - Variation of the Agreement
No change in Value of PG - Up to 25% (Plus or Minus) of the Agreement Value
Beyond 25% of the Contract Value - Additional PG - 10 % of the Excess value over the Original Contract Value - in 4 equal parts
If the Contract value decrease by more than 25% of Original Contract value - PG amounting to 10% of decrease in the Contract Value - Returned to the Contractor.
Forfeit of PG
25 % of PG is forfeit - If the penalty imposed exceeds 50% of the applicable maximum penalty (as per the revised value of the Contract)
50 % of PG is forfeited - If the penalty imposed exceeds 75 % of the applicable maximum penalty (as per the revised value of the Contract)
The PGs shall be encashed after the completion of the Contract only (not immediately on the date of forfeit of PG)
The logic of submitting PG in 4 equal parts is to make the encashment of the partial PG.
PG - Submitted in forms of :
Cash
Irrevocable BG - Bank Guarantee
Govt Securities incl: State loan bonds at 5% below the Market value
Deposit Receipts, Pay Orders, DDs, Guarantee Bonds of SBI or any Nationalised Bank
Guarantee Bonds/Deposit Receipts of all Scheduled Banks
Post Office Savings Bank Deposit
NSC - National Savings Certificate
12 year National Defence Certificate
10 year Defence Deposit
National Defense Bonds
UTI - Unit Trust Certificate at 5% below Market value or face value which ever is less
FDR in favour of PFA (free from any encumbrance)
Submission of PG — Between the LOA and Signing of the Agreement.
PG Validity - Up to Completion Period + Maintenance period, if any + 60 days
PG Release:
Issue of a Completion certificate issued by the Competent Authority
The passing of the Final bill based on the No Claims certificate from the Contractor
In case, of a warranty/maintenance clause, then 25 % of PG would be retained till the same is over.
Risk & Cost:
Whenever the Contract is rescinded, the PG shall be encashed/forfeited.
Balance work/service shall be got done independently without the risk & cost of the failed contractor.
The failed contractor is debarred for a period of 2 years from the date of such rescindment from participating in the bid.
Force Majeure:
7 days - Notice period by either of the parties - From the occurrence of war, hostility, acts of public enemy, civil commotion, sabotage, serious loss or damage by fire, explosions, epidemics, strikes, lockouts, or acts of God.
120 days - a period exceeding, such events - can terminate the Contract by either party.
Commencement of Service - 15 days - Contractor shall commence after the receipt of order in writing from the Manager (Railway)
Penalty - Maximum 10 % of the Contract value.
24/7 - Round the Clock - The Contractor shall have to carry out any required services as per the directions of the Manager (Railway)
5 days - Notify the Railways, if the Contractor receives a request from a Data subject to having access to that person’s Personal Data or a complaint or request relating to IR’s obligations under the Law.
Extension of Time:
If the new Contract has not been finalized - care should be taken. (other than Consultancy contracts)
Modification of the Contract - Extension is not less than one month.
Delay due to Railways
Delay due to the Contractor: Damages should be levied at the rate of 0.10 % of the Contract value for each week or part of the week. (maximum should not exceed 5% of the Contract value.) (not the penalty)
Variations:
In case Increase in Variations:
In case of a Decrease in Variations:
Variations - SOR (Schedule Of Rates) Items - The limit of 25% would apply to the value of the SOR Schedule as a whole and not to individual SOR items. However, in the case of NS items, the limit of 25% would apply to NS items irrespective of the manner of quoting the rate (single percentage rate or individual item rate)
Variations - For Tenders accepted at Zonal Railway level - Variations in the quantities - Approval by the Authority in whose powers the revised value of the Agreement lies.
Variations - For Tenders accepted by GM, variations up to 125% of the Original Agreement value may be accepted by GM.
Vitiation: Increase as well as decrease the value of the Contract Agreement - the vitiation shall be on the account of the Contractor - Payments shall be restricted to the lowest calculated value of all valid offers.
Contractor’s Claims - Once every Month.
Within 7 days - Any objection against Measurements by the Contractor
Checks while Passing the Bills:
All relevant records are to be certified by both the Contractor and the person nominated by the Railway
Ensure that Gross Minimum wages including ESI, PF, etc are paid as per the actuals by the Contractor to all the workers. If not, the same will be informed to Regional Labour Commissioner.
Ensure that all the relevant records related to statutory obligations and agreement conditions are submitted by the Contractor for claiming monthly bills
Railways shall upload the details of the Contractor online on the EPFO (Employees Provident Fund Organisation) Portal and cross-verify the same in monthly statements of the Contractor.
The Contractor is required to provide documentary evidence to show the coverage of all her workers or labour under the schemes on an annual basis. Upon verification of the records by the Railways, payments can be released to the Contractor.
PVC - Price Variation Clause:
Settled by every quarter
Applicable for Tenders whose period exceeds 18 months.
Exclusions from PVC - 1. Materials supplied free of cost or at fixed cost by the Railways to Contractor 2. Specific payments to the Consultants (GFR Rule: 225)
Base Month: Month of the opening bids (incl: extension if any)
Base Quarter: Commence from the month following the month of opening the Bid.
Extended Period - PVC:
Extension granted under Railways Account: (Clause 5.1) - The PVC (increase in the prices) allowed based on the original completion period or the extended period as the case may be.
Extension granted under Contractor’s Account: (Clause 5.2) - The PVC (decrease in the prices) allowed based on the original completion period or the extended period as the case may be.
Components % - different Service Contracts
Fixed Component - 15 % always in all Service Contracts.
Calculation of variation in Labour component
L = W x Lq-Lb / Lb x Lc/100
L = Amount of price variation in Labour
W= Gross valueof work done
Lq = CPI - Consumer Price Index number for Industrial worker - All India published in RBI bulletin for the Quarter under consideration
Lb = CPI - Consumer Price Index number for Industrial worker - All India published in RBI bulletin for the Base period.
Lc = Percentage of Labour component
Production of Vouchers (may be similar to the Book examination clause in Stores Contracts) - Applicable for Service Contracts valuing Rs. 2 Crores and above. - On-demand, the Contractor has to furnish quotation, invoice, cost of other accounts, book of accounts, voucher, receipt, letter, memorandum, etc - to verify the cost of execution of work under this contract.
Legal obligations:
Employing more than 20 workers - obtain the license from the Assistant Labour Commissioner under the Provisions of Contract Labour (Regulation and Abolition) Act, 1970/Rules 1950
The Labour law awareness:
1. Mandatorily provide comprehensive day-long training by third-party agency for awareness of labour laws among his workers and submit documentary proof to the Railways
2. Publish a comprehensive booklet (approved by the Railways) in the local vernacular language about all relevant updated labour legislations & rules to every worker.
Provision of Canteen - More than 100 workers
First Aid box - for every 150 contract labour or part thereof
Wages - Before the expiry of 7 days of the last day of the wage period - less than 1000 workers
Wages - Before the expiry of 10 days of the last day of the wage period - more than 1000 workers
Weekly rest to all the workers on a staggered basis.
Numbers - Services
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