Letter of Invitation - pmgsy

To,
______________,
______________,
______________,
______________.
Letter of Invitation
National Rural Roads Development Agency
Ministry of Rural Development, Government of India
5 th Floor, NBCC Tower, Bhikaji Cama Place, New Delhi – 66
Phone No: 011- 26181424, 26716930, Fax: 41000475
Subject: Internal Audit of World bank Funded Pradhan Mantri Gram Sadak Yojana
(PMGSY) Project in the State of Himachal Pradesh, Jharkhand, Rajasthan and
Uttar Pradesh.
Dear Sir,
1. You are hereby invited to submit technical and financial proposals for consultancy
services required for Internal Audit of World Bank funded Pradhan Mantri Gram Sadak
Yojana Project in the States of Himachal Pradesh, Jharkhand, Rajasthan and Uttar
Pradesh which could form the basis for future negotiations and ultimately a contract
between your firm and National Rural Roads Development Agency (NRRDA), 5 th Floor,
15 - NBCC Tower, Bhikaji Cama Place, New Delhi – 110066. The consultant may
submit proposal for one, one or more or for all States. But proposal should be State wise
and each state would be treated as a separate assignment.
2. The purpose of this assignment is to providing consultancy services of internal audit of
selective PMGSY projects. More details on the services are provided in the terms of
references.
3. The following documents are enclosed to enable you to submit your proposal:
(a) Terms of reference (TOR) (Annexure 1 & 1-A);
(b) Supplementary information for consultants, including a suggested format of
curriculum vitae (Annexure 2); and
(c) A Sample Form of Contract for Consultants' Services under which the services
will be performed (Annexure 3).
4. NRRDA has received a loan from the International Bank for Reconstruction and
Development (IBRD)/ credit from the International Development Association (IDA) in
various currencies toward the cost of PMGSY and intends to apply a portion of this loan
to eligible payments under this Contract. Payments by IBRD will be made only at the
request of client and upon approval by IBRD/IDA, and will be subject, in all respects, to
the terms and conditions of the Loan/ Credit Agreement. The Loan/ Credit Agreement
prohibits a withdrawal from the Loan/ Credit Account for the purpose of any payment to
persons or entities, or for any import of goods, if such payment or import, to the
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knowledge of the Bank, is prohibited by a decision of the United Nations Security
Council taken under Chapter VII of the Charter of the United Nations. No party other
than the client shall derive any rights from the Loan/ Credit Agreement or have any claim
to proceeds.
5. Clarification and Amendments to RFP Documents
5.1 Consultant may request a clarification of any of the RFP documents up to fifteen (15)
days prior to the proposal submission date (but prior to pre bid meeting). Any request for
clarification must be sent in writing to the address indicated below. These would be
clarified at the pre-bid meeting without identifying its source.
5.2 Pre-bid meeting
Director (Finance & Administration),
National Rural Roads Development Agency, 5th Floor,
15- NBCC Tower, Bhikaji Cama Place, New Delhi – 110066.
Telephone No. 011-26181424 Fax No. 011-41000475
5.2.1 The bidder or his official representative is invited to attend a pre-bid meeting, which will
take place on 14-03-2011 at 3 p.m. at the above venue.
5.2.2 The purpose of the meeting will be to clarify issues and to answer questions on any matter
related to the RFP that may be raised at that stage including the clarifications requested
under 5.1 above.
5.2.3 Non-attendance at the pre-bid meeting will not be a cause for disqualification of a bidder.
5.3 Amendment to RFP
5.3.1 At any time before the submission of Proposals, the NRRDA may, whether at its own
initiative, or in response to a clarification requested by a short listed firm, or in response
to queries raised at the pre-bid meeting amend the RFP by issuing an addendum. The
addendum shall be sent to all short listed Consultants and will be binding on them. To
give Consultants reasonable time in which to take an amendment into account in their
Proposals, the NRRDA may at its discretion, if the amendment is substantial, extend the
deadline for the RFP submission.
6. Submission of Proposals: The proposals shall be submitted in two parts, viz., Technical
and Financial and should follow the form given in the "Supplementary Information for
Consultants."
6.1 The "Technical" and "Financial" proposals must be submitted in two separate sealed
envelopes (with respective marking in bold letters) following the formats/schedules given
in the supplementary information for consultants. The first envelope marked "Technical
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proposal" should include the description of the firm/organization, the firms general
experience in the field of assignment, the qualification and competency of the personnel
proposed for the assignment and the proposed work plan methodology and approach in
response to suggested terms of reference. Separate page should be used for each State in
case the proposal is for more than one State. The first envelope should not contain any
cost information whatsoever. The second envelope marked 'FINANCIAL PROPOSAL'
must also be sealed and should contain the detailed price offer for the consultancy
services (Form- F-1A & F-1B).
You will provide detailed break down of costs and fees as follows:
Staff billing rate plus overheads;
Travel, accommodation and per diem charge;
Report and document reproduction; and
Contingencies
Both the sealed envelopes should again be placed in a sealed cover which will be received
in the office of the NRRDA upto 1700 hours on 23-03-2011
6.2 Instructions to Consultants
(i) Consultants shall bear all costs associated with the preparation and submission of
their Proposals. Costs might include site visit, collection of information, and if
selected, attendance at contract negotiations.
(ii) The agency is not bound to accept any Proposal and reserves the right to annul the
selection process at any time prior to contract award, without thereby incurring any
liability to the Consultants.
(iii) In preparing their Proposals, Consultants are expected to examine in detail the
documents comprising the RFP. Material deficiencies in providing the information
requested may result in rejection of a Proposal.
6.3 Opening of Technical Proposal
The proposals (first envelope containing Technical proposal only) will be opened by the
Director Finance or his/her authorized representative in his office at 3 p.m. on 25-03-
2011 It may please be noted that the second envelope containing the detailed price offer
will not be opened until technical evaluation has been completed and the result approved
and notified to all consultants.
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7. Evaluation of Technical Proposal
7.1 A two-stage procedure will be adopted in evaluating the proposals with the technical
evaluation being completed prior to any Financial proposals being opened. In case,
proposals have been submitted for more than one State, each State will be treated as a
separate assignment and evaluated separately. The Technical proposals will be evaluated
using the following criteria:
(i) the consultant's relevant experience for the assignment (5 points) + works
experience (5 points) + magnitude of assignment (5 points) ;
(ii) the quality of the methodology proposed (15 points); and
(iii) the qualifications and experience of the key staff proposed for the assignment (60
points + 10 points for Public Works Accounts experience of staff).
Curriculum vitae of senior personnel in each discipline for assessing the qualifications
and experience of the personnel proposed to be deployed for the studies should be
included with the proposal (in the format of the sample curriculum vitae). Five CV’s per
proposal (in case, proposal is for more than one State) shall be evaluated. These personnel
will be rated in accordance with:
(a) General qualifications - (20 points)
(b) Adequacy for the project (suitability to perform the duties for this assignment. These
include education and training, length of experience on fields similar to those required
as per terms of reference, type of positions held, time spent with the firm etc.) - (35
points)
(c) Involvement in skills transfer program and training/educating ability - (05 points)
Technical proposals scoring not less than 75 % of the total points will only be
considered for financial evaluation.
7.2 NRRDA shall notify those consultants whose proposals did not meet the minimum
qualifying mark or were considered non-responsive to the Letter of Invitation and Terms
of Reference, indicating that their Financial Proposals will be returned unopened after
completing the selection process. NRRDA shall simultaneously notify the consultants
that have secured the minimum qualifying mark, indicating the date and time set for
opening of Financial Proposals. The notification may be sent by registered letter, cable,
telex, facsimile, or electronic mail.
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8. OPENING AND EVALUATION OF FINANCIAL PROPOSALS
Opening of Financial Proposals
8.1 Consultants representative are encouraged to be present at the time of opening of
Financial Proposal. At the opening of Financial Proposals, Consultant representatives, who
choose to attend, will sign an Attendance Sheet.
(i) The mark of each Technical Proposal that meet the minimum mark of 75 will be read
out aloud.
(ii) Each Financial Proposal will be inspected to confirm that it has remained sealed and
unopened.
(iii) The Agency representative will open each Financial Proposal, and initial all the pages
except printed document and also circle any initialed changes made by the consultant.
Such representative will read out aloud the name of the Consultant and the total prices
shown in the Consultant’s Financial Proposal. The Agency’s representative will record this
information in writing.
Evaluation of Financial Proposals
8.2 The Agency will subsequently review the detailed contents of each Financial
Proposal during the examination of Financial Proposals, the Agency staff and any others
involved in the evaluation process will not be permitted to seek clarification or additional
information from any Consultant who has submitted a Financial Proposal.
8.3 Financial Proposals will be reviewed to ensure that the figures provided therein are
consistent with the details of the corresponding Technical Proposal (e.g. personnel schedule
inputs, etc.).
8.4 The commercial terms in each Financial Proposal will be checked for compliance with
the requirements set forth in the Data Sheet. For instance the validity period of the
Consultants’ Proposals must accord with the validity period set down in the Data Sheet.
8.5 Financial Proposals will be checked for computational errors or material omissions, and
prices will be corrected and adjusted as necessary. In the case of material omissions, the
cost of the relevant Financial Proposal will be increased by application of the highest unit
cost and quantity of the omitted item as provided in the other submitted Financial Proposals.
8.6 The total price (TP) for each Financial Proposal will be determined.
8.7 If a discount has been offered in any Financial Proposal, such discount will be applied prorata
against each item, i.e., each expert’s remuneration and each out-of-pocket cost item.
However, the discount will not apply to the provisional sums items. The Agency reserves
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the right to reject, at its sole discretion, any or all evaluated Financial Proposals and if
necessary, call for submission of new Financial Proposals. In order to allow comparison on a
common basis, each Financial Proposal will be carefully scrutinized in accordance with the
procedure outlined in Clauses 8.2 to 8.7 and total price will be determined. The score for
each Financial Proposal is inversely proportional to its TP and will be computed as follows:
Sf = 100 x Fm/F
Where:
Sf is the financial score of the Financial Proposal being evaluated
Fm is the TP of the lowest priced Financial Proposal
F is the TP of the Financial Proposal under consideration
The lowest evaluated Financial Proposal will receive the maximum score of 100 marks.
9. Ranking of Proposals
9.1 Following completion of evaluation of Technical and Financial Proposals, final
ranking will be done by applying a weightage of 0.60 (or 60 percent) and 0.40 (or 40
percent) respectively to the technical and financial score of each evaluated qualifying
Technical and Financial Proposal and then computing the relevant combined total score
for each Consultant. After such final ranking, the first-ranked Consultant will be invited
for contract negotiations.
10. Negotiations
10.1 Negotiations will be held at the address indicated in para 5.1. Normally, such
negotiations commence not less than seven days after issuance of the Agency invitation to
attend the negotiations. The invited Consultants will, as a pre-requisite for attendance at
the negotiations, confirm availability of all nominated experts and satisfy such other prenegotiation
requirements as the Agency’s may specify. Failure in satisfaction of such
requirements may result in the Agency’s proceeding to negotiate with the next-ranked
Consultant. Representatives conducting negotiations on behalf of the Consultant must
have written authority to negotiate technical, financial, and other terms and conclude a
legally binding agreement.
10.2 The technical negotiations cover the Consultant’s Technical Proposal, including the
proposed technical approach and methodology, work plan, staffing schedule,
organizational arrangements, and any suggestions made by the Consultant or the Agency
to improve the implementation of the assignment. Negotiations will not result in
substantial modifications to either the Consultant’s Technical Proposal or the TOR.
10.3 The financial negotiations will generally fine-tune duration of expert’s inputs and
quantities of out-of- pocket expenditure items may be increased or decreased from the
relevant amounts shown or agreed otherwise, in the Financial Proposal. Unless
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exceptional circumstances exist, the details of experts’ remuneration and specified unit
rates for out-of-pocket expenditures will not be subject to negotiations.
10.4 The consultant shall confirm the modifications made in his proposals in writing within
three days of conclusion of negotiations.
10.5 If contract negotiations are unable to be concluded for any reason, the Agency will’ at its
discretion, commence negotiations with the next ranked consultant.
11. Confidentiality
11.1 Information relating to evaluation of Proposals and recommendations concerning
contract award shall not be disclosed to Consultants who submitted Proposals or to
other persons not officially concerned with the recruitment process until the
successful firm has been notified and contract awarded.
12. Award of Contract
After completion of negotiations, the Agency shall award the contract to the selected
Consultant and promptly notify the other Consultants who submitted Proposals that they
were unsuccessful. The Agency will return the unopened Financial Proposals to the
unsuccessful Consultants.
13. You are requested to hold your proposal valid for 90 days from the date of submission
without change the personnel proposed for the assignment and your proposed price. The
NRRDA will make its best efforts to select a consultant firm within this period.
14. Assuming that the contract can be satisfactorily concluded by June, 2012, you will be
expected to take-up/commence with the assignment in a month of award of assignment
order by NRRDA.
15. Under the overall guidance of the NRRDA, the CA firm will work directly with the
respective PIUs. The Consulting services are expected to conduct Audit for one and half
financial years i.e. 1 st October, 2010 to 31 st March, 2011 and 1 st April, 2011 to 31 st
March, 2012 and services are likely to conclude by July, 2012 subject to annual review.
Performance of the Agency would be reviewed at the end of each year based on definite
measurable indicators and the contract may be terminated after giving one month notice if
performance of the Agency is found unsatisfactory.
16. We wish to remind you that any manufacturing or construction firm with which you
might be associated with, will not be eligible to participate in bidding for any goods or
works resulting from or associated with the project of which this consulting assignment
forms a part.
17. Please note that if you consider that your firm does not have all the expertise for the
assignment, there is no objection to your firm associating with another firm to enable a
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full range of expertise to be presented. However, joint ventures between firms on the
shortlist are not permitted except with the prior approval of NRRDA. The request for a
joint venture should be accompanied with full details of the proposed association.
18. An invitation to submit the proposals have also been sent to the firms
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19. Please note that the remuneration which you receive from the contract will be subject to
normal tax liability in India. Kindly contact the concerned tax authorities for further
information in this regard if required.
20. We would appreciate if you inform us by Telex/Facsimile:
(a) Your acknowledgment of the receipt of this letter of invitation; and
(b) Whether or not you will be submitting a proposal.
Enclosures:
1. Terms of Reference.
2. Supplementary Information to Consultants.
3. Draft contract under which service will be performed.
Yours faithfully,
Director (F&A)
National Rural Roads Development Agency
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TERMS OF REFERENCE
The Terms of Reference should include the following:
Annexure - 1
Terms of Reference for Internal Audit of State Rural Road Development Agencies
funded with World Bank Assistance
I. Introduction
Project Objective
Ministry of Rural Development, Union of India has launched a programme known as Pradhan
Mantri Gram Sadak Yojana (PMGSY) in December, 2000 to provide connectivity to all
unconnected habitations in rural areas by way of all weather roads. In February,2005 the
Government of India had identified rural roads as one of the six components of Bharat Nirman
and has set a goal to provide connectivity to all villages with a population of 1000 (500 in case of
hills, or tribal areas) by 2012 under the ongoing PMGSY. In addition to new connectivity to the
target habitation, upgradation of existing through route is also envisaged under Bharat Nirman
for providing farm to market connectivity. The Ministry of Rural Development and its
associated technical arm, the National Rural Roads Development Agency (NRRDA) has been
tasked with designing the programme strategy and overseeing actual implementation by States
and District bodies.
The PMGSY is a 100% centrally sponsored scheme which is being implemented by the State
Governments. Each State Government has nominated a department as Nodal Department (Rural
Development or Public Works Department or Panchayati Raj Department) who is responsible for
the implementation of the programme in the State. The Nodal Department has set up State level
autonomous agency called State Rural Road Development Agency (SRRDA) with a distinct legal
status. These agencies are registered under Societies Registration Act, 1860. The SRRDA get the
work executed through Programme Implementation Unit (PIU) at district or tehsil level. The
PIU is headed by an officer of the rank of Executive Engineer. He has technical staff and clerical
staff on the pattern of public works system.
Fund Flow for the Project
The major source of funds for development of roads is the Central Road Fund accretion therein is
cess on diesel oil. Besides this, World Bank gives funds to Union Government in the shape of
soft loan which are siphoned to the SRRDA in form of grant-in-aid. The Government of India
has entered into a loan agreement with World Bank for providing financial assistance to the
programme implemented in the selected districts of State of Himachal Pradesh, Uttar Pradesh,
Rajasthan and Jharkhand. The World Bank is considering providing additional financial
assistance to three States namely Meghalaya, Punjab and Uttarakhandl.
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Accounting System
A common accounting system has been developed for the project which is based on Central
Public Works Accounting System and double entry accounting system (Mercantile Accounting).
The accounting system and financial management system relevant to World Bank assistance is
codified in the following manuals developed by the NRRDA which is available on the website
www.pmgsy.nic.in
(i) PMGSY Accounts Manual Programme Fund
(ii) PMGSY Accounts Manual Administrative Expense Fund;
(iii) Supplemental Operations Manual and
(iii) User Manual for the Online Management Monitoring and Accounting System
The Ministry of Rural Development has also laid down guidelines for PMGSY programme
which are codified in a book called PMGSY Programme Guidelines. The book has been hosted
on the website mentioned above.
Internal Audit
In the past, MoRD/NRRDA had engaged Chartered Accountant firms to undertake work of
internal audit of SRRDA and PIUs in the States receiving World Bank Financial Assistance for
three and half financial years i.e. 1 st April, 2007 to 31 st March, 2008 and 1 st April, 2008 to 31 st
March, 2009, 1 st April, 2009 to 31 st March, 2010 and 1 st April, 2010 to 30 th September, 2010.
Now, MoRD/NRRDA wishes to re-appoint Chartered Accountants firms to undertake the above
work for one and half financial years i.e. 1 st October, 2010 to 31 st March, 2011 and 1 st April,
2011 to 31 st March, 2012. The list of the PIUs to be covered State wise is attached (Annexure-
1A).
II. Scope of Work
Objectives
The objectives of the internal audit are to:
1. Review the adequacy of the project financial management arrangements, including
adherence to the PMGSY Operational and Accounting manuals and compliance with
financing agreements with the World Bank;
2. Provide the project management with timely information on financial management
aspects of the project to enable appropriate follow-up action;
Scope of Internal Audit
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The audit will be carried out for each financial year in accordance with the relevant national
standards of auditing, and will include such tests and controls as the auditor considers necessary
under the circumstances. In conducting audit special attention should be paid to the following:-
1. Ensure that the accounting and financial management systems remain reliable and
effective in design and to assess the extent to which they are being followed;
2. Review the efficacy, adequacy and application of accounting, financial and operating
controls and thereby ensure the accuracy of the books of accounts;
3. Verify that the system of internal check is effective in design and operation in order to
ensure the prevention of and early detection of defalcations, frauds, misappropriations
and misapplications;
4. Identify areas of significant inefficiencies in existing systems and suggest necessary
remedial measures;
5. Confirm the existence of financial propriety in all decision and verify compliance to
government and statutory requirement.
6. Confirm that the agreed procurement procedures and arrangements have been followed
for works, goods and services. While doing so, the checklist attached with this TOR will
be followed by the internal auditor.
7. Check that all expenditure on works funded by World Bank Assistance, including
procurement of goods and services, have the necessary supporting documents and have
been incurred in accordance with the PMGSY/Government of India rules and relevant
financing agreement.
8. Verify that all the goods procured and issues are supported by valid receipt and issue
document (namely Goods Receipts Sheet, Indent and unstamped receipt) and are recorded
in the Priced Store Ledger/Bin Card and also closing balances worked out correctly.
Physical verification of assets and other inventories would be taken up as deemed
necessary by the auditor in respect of World Bank funded goods only.
9. Confirm that Bank Authorization given to PIUs for incurring expenditure under the
project are used for purpose intended. To establish this, the auditor should visit PIUs and
conduct such audit/tests as may be deemed appropriate and necessary for the purpose of
the audit.
10. Check that the Statements of Expenditure (SOE) submitted for the World Bank to
NRRDA on a monthly basis reconcile with the expenditures reported under the Financial
Management Reports (FMRs), also submitted to the World Bank (through NRRDA) on a
quarterly basis.
11. that adequate records are maintained regarding the assets created and assets acquired by
the project, including details of cost, identification and location of assets; and that the
physical verification of assets is being carried out with due diligence.
Extent and coverage of internal audit:
The extent and scope of internal audit will be as follows:
1. The internal auditor shall exercise 100% check of awarded contract for construction of
new roads and upgradation of existing roads.
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2. The auditor will vouch 100% of cash payment vouchers, bank statements and transfer
entry vouchers and cheque payments shall be vouched to cover 50% of the transaction in
each of the months selected.
3. A list showing the months / year for which vouching has been carried out shall be
mentioned in the report.
4. Routine errors of omissions or commissions noted during the course of internal audit may
be rectified on the spot.
5. While conducting internal audit in a subsequent phase, the auditor will ensure that the
compliance report on audit observations pointed out in the reports relating to earlier audit
is made and corrective actions taken on those points are furnished in the Audit Report of
the subsequent phase.
6. The consultant shall check the records of PIUs/SRRDA for the period 1.4.2007 onwards.
However, records of earlier period can be checked, if required, wherever necessary.
Period of Internal Audit
The period to be covered under internal audit would be one and half financial years – 1 st October,
2010 to 31 st March, 2011 and 2011-12 (work is to be carried out in fifteen months i.e. from May,
2011 to July, 2012). The audit for each financial year will be carried out in two phases of six
months each ending on 30 th September and 31 st March. The appointment letter of auditors shall
contain details of date of commencement of audit, completion of audit work in each phase, the
date by which the reports are to be submitted and phase-wise fees payable. It shall specify the
level of inspecting officer, minimum period he will visit each PIU in each phase and the
minimum qualifications of the members of the audit team.
Internal Audit Reports
The report should be structured in a manner to provide the following: (a) audit observations; (b)
implications of the observations; (c) suggested recommendations; (d) management’s
comments/agreed actions and (e) status of actions on the previous recommendations. In addition,
the internal auditor should prepare and submit a consolidated report on a six monthly basis,
summarizing the individual unit wise reports and highlighting the critical issues which require
the immediate attention of the SRRDA. The internal audit report for the period from April to
September will be submitted to NRRDA/SRRDA latest by 31 st (of the following year) and that of
October to March latest by 31 st July. Any deviation in this regard will attract penalty to be
decided by the complaint Authority of NRRDA.
The auditor should discuss results of audit with the officer in-charge of PIU / SRRDA in each
phase and important observations will be brought to his notice for taking timely corrective action.
The report in respect of PIU shall be submitted in triplicate for each phase of audit. One set of
the report will be submitted to SRRDA, second set of the report to PIU and third set of report to
NRRDA for taking necessary action. In the case of audit of SRRDA, the report will be submitted
in duplicate for each phase of audit. One copy of the report will be submitted to Chief Executive
Officer of SRRDA and second copy of the report to NRRDA for necessary action.
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Audit Committee
SRRDA will appoint an audit committee consisting of three member of its executive body. Head
of Finance Division of SRRDA will assist the committee. The audit committee will consider all
the audit reports and placed its recommendations before the executive committee of the Nodal
Department of the State Government.
III. General
The auditor will be given access to all legal documents (agreement), correspondence, financial
manuals, notices from the Project Management/State Implementing Units and any other
information associated with the project as deemed necessary by the auditor.
The CA firm should familiarize themselves with the procedures laid down in the following
publications:
a) the tripartite agreement on Banking Arrangements, guidelines for banking arrangement
codified in the PMGSY Programme Guidelines,
b) accounting system of PMGSY codified in accounts manuals of Programme Fund and
Administrative Expenses Fund,
c) financial management and auditing of project financed by the World Bank codified in the
NRRDA PMGSY Supplemental Operation Manual,
d) World Bank’s Disbursement Manual, and
e) PMGSY Online Management, Monitoring and Accounting System.
f) Standard Bidding Document.
The CA firm entrusted the job of internal audit should deploy some personnel who is conversant
with Public Works Account System of Central PWD/State PWD at Divisional level. It is also
desirable to have at least one team member aware with the procurement system of the World
Bank and the states.
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PMGSY: Internal Procurement Audit Checklist
Note:
a) The purpose of this checklist to guide the internal auditors in the procurement audit process so
that all the aspects of the procurement process are looked into and the approach has consistency
across the states.
b) Before conducting the procurement audit, the auditors should familiarize themselves with the
agreed procurement procedures for PMGSY as provided in the legal agreements for the project.
c) Audit report should be submitted as part of the financial audit report but as a separate section.
d) The procurement audit and its findings (on qualitative aspects and as well as transactional
aspects) shall be based on the review of actual procurement cases and contracts.
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Checklist 1: Qualitative Aspects of Procurement
1) Whether any manual on procurement procedure have been prepared and are available on site?
If no, how the procurement procedure is guided?
2) Whether the Bank’s standard bidding documents are used for preparation of tenders etc.? If
no, how the tenders are prepared?
3) Whether dedicated procurement staff are in place? If no, who handles the procurement?
4) Whether the staff handling the procurement have exposure or training related to the
procurement?
5) Whether complete list of contracts issued is available? Whether these data are computerized?
6) Whether the procurement related documents are available systematically?
7) Whether internal approvals are taken for inviting quotations/placing orders?
8) Whether financial negotiations are conducted frequently? If yes, under what circumstances and
with whom (with all or lowest bidder)?
9) Is there a procurement related compliant handling system in the agency? If yes, whether
bidders are aware of the same?
10) Whether the agency discloses the bid opportunity, put the tender documents and contract
award information on its website?
11) Whether a procurement plan is available? If yes, whether the actual progress is being
monitored against the plan? If there are delays, what measures are being taken to cover the
delays?
12) Whether any procurement related irregularities were reported in the previous audit report? If
yes, what actions have been taken in this regard?
13) Whether there is separation of duties between various functions viz. indenting/receiving,
procurement and releasing funds?
14) Feedback from procurement staff and other officials met on how to reduce delays and
improve the process
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Checklist 2: Procurement of Works/Goods
1) Whether the method of procurement (based on the estimated value) adopted is in accordance
with the Project Agreement? If no, list the deviations (major/minor)
2) Whether bidding document used for this work is according to the standard model cleared with
the Bank? If no, list the deviations from standards (major/minor)
3) Whether price adjustment clause provided in the bid document? (Required when period of
completion is more than 12 months)
4) Whether bill of quantities provides schedule of quantity for each slice separately and also one
schedule for the combined work/goods?
5) Whether the guidelines have been followed in fixing the Bid Security? If not, why?
(No exemption should be permitted to any bidder or any class of bidders)
6) Whether any preference on price or other conditions allowed in the bidding document/award
for any bidder or class of bidders? If yes, list the preferences.
(No preferential treatment should be given to any bidder or class of bidders either for price or for
conditions unless specifically cleared with the Bank and stipulated in the Project Agreement.)
7) Whether the Cost of bidding documents is reasonable?
8) Whether the Notice inviting tender (NIT) published in national newspapers?
9) Whether minimum 30 days provided for sale of bid documents?
10) If pre-bid conference was held, whether the minutes were prepared and circulated to all the
prospective bidders?
11) Whether the last date of receipt of bids and the date of opening of bids are different (Both
should be the same)
12) Whether bids were evaluated as per the criteria given in the bid document?
13) Has award been made to the lowest responsive bidder? (Award should be made to the lowest
responsive bidder.) If no, the reasons for ignoring lower offers?
14) Were any negotiations held with the bidders after opening of bids? If yes, whether Bank's
clearance was obtained before holding negotiations and when? If Bank's clearance was not
obtained why? (Bank does not favor any negotiations.)
15) Whether the award was made within the original bid validity?
i) if no, what are the reasons for delay?
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ii) if extension of bid validity was sought, was that from all bidders and not from the
lowest alone?
iii) Was the period of extension exceeded 8 weeks?
iv) If affirmative, was Bank’s clearance obtained?
16) Has the successful bidder furnished performance security in accordance with the conditions
of contract?
17) Whether Items received/work completed as per the schedule indicated in the contract
document?
18) Whether payment released timely and as per the terms given in the contract?
19) Whether the assets procured are being utilized for the intended purpose?
20) Whether all the documents/records related to the contract were available?
17

Checklist 3: Selection of Consultants
1) Whether the method of selection adopted is in accordance with the Project Agreement
2) Whether the terms of reference include the following?
i) Concise statement of objectives
ii) Outline of tasks to be carried out
iii) Schedule for completion of tasks
iv) Support/inputs to be provided by the employer
v) Final outputs required from the consultant
vi) Review procedures
3) Whether the terms of reference have been reviewed and cleared with the Bank?
4) Whether the cost estimate has been prepared (Cost estimate, or budget, should be based on
borrower's perception of the assignment requirements in terms of level and type of personnel,
period to be spent in the field and in the home office, physical inputs and other items required for
the services.)
5) Whether a short list of the consultants/ consultant firms has been drawn? (The short list
should have 6 consultants)
6) Whether the draft letter of Invitation with draft or contract according to the Bank’s standard
document? If not/reasons thereof
7) Whether at least 30 days given for submission of proposals
8) Whether the proposals were evaluated as per criteria set out in the Letter of invitation.
9) Whether the financial proposals opened in presence of technically qualified consultants?
10) Whether the financial negotiations were held with the highest ranked firm (financial
negotiations are not allowed if price is a factor for selection)
11) Whether proposals were evaluated as per the criteria given in the RFP document?
12) Has award been made to the highest ranked consultant? (Award should be made to the
consultant scoring highest rank based on evaluation of technical and financial proposals)? If no,
the reasons for ignoring the highest ranked proposal?
15) Whether the award was made within the original proposal validity? If no, what are the
reasons for delay?
18

16) Whether the assignment completed as per the schedule indicated in the contract document?
17) Whether payment released timely and as per the terms given in the contract?
18) Whether all the documents/records related to the contract were available?
19

S.N.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
State-wise List of PIUs/ SRRDA to be covered
Annexure – 1A
Uttar Pradesh Himachal Pradesh Rajasthan Jharkhand
Allahabad Shimla-1 Alwar Dumka
Ambedkarnagar Shimla-2 Banswara East Singhbhum
Azamgarh- I Theog Baran Hazaribagh
Badaun Rohru Barmer Palamau
Bahraich- I Chopal Bharatpur Ranchi (SRRDA)
Ballia Jubbal Bhilwara
Balrampur Kumarsain Bundi
Bandha Rampur Chittorgarh
Barabanki Nirmand Dausa
Barelly Kullu-1 Dungarpur
Basti Kullu-2 Jaipur
Chitrakoot Mandi-1 Jhalawar
Etawah Mandi-2 Jhunjhunun
Farukhabad Sundarnagar Jodhpur
Fatehpur Karsog Nagaur
Firozabad Sarkaghat Rajsamand
Gazipur Jogindernagar Sikar
Hardoi Dharampur Tonk
Jaunpur Nahan Udaipur
Jaipur
Kannauj Rajgarh
(SRRDA)
Kheri Sangrah Balotra
Kushinagar Shillai
Mau Poanta
Moradabad Palampur
Pratapgarh- I Dharamshala
Rai Barelly Kangra
20

27
28
29
30
31
32
33
34
35
36
37
38
39
40
Rampur Baijnath
Sant Kabir Nagar Fatehpur
Shahjahanpur- I Nurpur
Shravasti Jawali
Siddarth Nagar Dehra
Sitapur Killar
Sonebadhra Chamba
Sultanpur Dalhousie
Unnau Bharmour
Lucknow (SRRDA) Salooni
Bahraich- II Shimla (SRRDA)
Shahjahanpur- II
Pratapgarh- II
Azamgarh- II
21

SUPPLEMENTARY INFORMATION FOR CONSULTANTS
Proposals
(1) Proposals should include the following information:
(a) Technical Proposal
Annexure - 2
(i) A brief description of the firm/organization and an outline of recent experience on
assignments/ projects of similar nature executed during the last 10 years in the
format given in Form T-2.
(ii) Any comments or suggestions of the consultant on the Terms of Reference (TOR).
(iii) A description of the manner in which consultants would plan to execute the work.
Work plan time schedule in Form T-3 and approach or methodology proposed for
carrying out the required work.
(iv) The composition of the team of personnel which the consultant would propose to
provide and the tasks which would be assigned to each team member in Form T-4.
(v) Curricula Vitae of five key staff members (per State) to be assigned to the work
and of the team leader who would be responsible for supervision of the team. The
curricula vitae should follow the attached Format (T-5) duly signed by the
concerned personnel. (1TL, 5 key staff, total 6 CV’s per State only to be
furnished).
(vi) The consultant's comments, if any, on the data, services and facilities to be
provided by State Rural Road Development Agency/NRRDA in the Terms of
Reference (TOR).
(vii) The consultant’s Work program and time schedule for key personnel in Form
No.T-6.
(viii) The consultant may submit proposal for one, one or more or for all States. The
proposal for each State shall be evaluated separately.
(b) Financial Proposals
(i) The financial proposals should include the Schedule of Price Bid in Form No.
F-1A with cost break-up for the work program indicated in Form F-1B.
22

(ii) The financial proposals should be separately worked out for each State, as the
contract for each State shall be awarded separately.
(iii) A short listed Consultant should submit only one proposal for each State. If a
short listed consultant submits or participates in more than one proposal of the
same State such a consultant shall be disqualified. Similarly, an associated
consulting firm should submit proposal with one consulting firm only. A short
listed consultant may submit proposal for one or more State. However, such
proposals should contain name of different experts. Each proposal would be
evaluated on the basis of qualification & experience of experts proposed in that
particular proposal.
(2) Two copies of the proposals should be submitted to NRRDA.
(3) Contract Negotiations
The aim of the negotiation is to reach an agreement on all points with the consultant and
initial a draft contract by the conclusion of negotiations. Negotiations commence with a
discussion of Consultant's proposal, the proposed work plan, staffing and any suggestions
you may have made to improve the Terms of Reference. Agreement will then be reached
on the final Terms of Reference, the staffing and the bar chart, which will indicate
personnel, periods in the field and office, man-months, and reporting schedule. Based on
this adjustments necessary will be discussed and agreed.
(4) Contracts with Team Members. Bearing in mind that rates are negotiable, firms are
advised against making firm financial arrangements with prospective team members prior
to negotiations.
(5) Nomination of Experts
Having selected a firm partly on the basis of an evaluation of personnel presented in the
firm's proposal, NRRDA expects to negotiate a contract on the basis of the experts named
in the proposal and, prior to contract negotiations, will require guarantees that these
experts shall, in fact, be made available. As the expected date of mobilization is given in
the letter inviting proposals, NRRDA will not consider substitution after contract
negotiations, except in cases of unexpected delays on the starting date or incapacity of an
expert for reasons of health, or leaving the firm. The desire of a firm to use an expert on
another project shall not be accepted for substitution of personnel.
(6) Terms of Payment
The mode of payments to be made in consideration of the work to be performed by the
consultant shall be as follows :
23

Stage
PAYMENT SCHEDULE (1st year)
Rate percentage of Contract
Value
1st 5%
1st six months 2nd six months
Event
After unequivocal acceptance of
letter of Award and submission
and approval of inception report by
NRRDA.
2nd 8% 8%
Upon receipt of six monthly
Preliminary Internal Audit Report
3rd 6% 6%
Upon receipt of six monthly final
draft Internal Audit Report
Upon approval of six monthly
4th 6% 6% Final Report acceptable to
Stage
NRRDA
PAYMENT SCHEDULE (2nd year)
Rate percentage of Contract
Value
Event
1st
1st six months 2nd six months
8% 8%
2nd 6% 6%
3rd 13.5% 13.5%
Upon receipt of six monthly
Preliminary Internal Audit Report
Upon receipt of six monthly final
draft Internal Audit Report
Upon approval of six monthly
Final Report acceptable to
NRRDA
Note : All payments shall be made on submission of pre-receipted bills by the consultants
in triplicate for respective stages to designated officer of SRRDA. The designated officer
of SRRDA will certify the bills and forward two copies of the same with their
observations / comments within seven days of the receipt of the bills to NRRDA for
further processing/ release of payment.
(7) Review of reports
A review committee consisting of officers of the SRRDA will review all reports of
consultants (Quarterly and Annual Reports) and suggest any modifications/changes
considered necessary within 15 days of receipt.
24

Schedule of Price Bid
Form No. F-1 A
Sl Name of State Consultancy service fees Service Total
No.
Tax (Rs.)
In figures In words
(1)
1
2
3
4
Total
(2) (3) (4) (5)
(3 + 4)
Total fees including service tax in words and figures.
Signature of Consultant
(Authorized representative)
Note :- 1. The consultant may quote for anyone, more than one or all the four States.
2. TDS will be deducted by NRRDA at the rates notified by Government of India from
time to time from the running and final bill of the consultant.
25

Remuneration of Staff
Cost Estimate of Services
Staff Name Daily (Monthly) Rate Working Days Total Cost
Including Over Heads. (Months) (Rs.)
(Rs.)
a) Team Leader
b) Technical/Managerial Staff
c) Support Staff
Out-of-Pocket Expenses:
a) Per Diem 1 Room Subsistence cost Total Days
Sub-Total (Staff) __________
__________
b) Travel Expenses __________
c) Lump Sum __________
Miscellaneous
Expenses: 2
Sub-Total (Out-of-Pocket) __________
Contingency Charges: __________
TOTAL COST ESTIMATE ____________
+ Service Tax
_____________
Form F-1B
1
Per Diem is fixed per calendar day and need not be supported by receipts.
2 To include reporting costs, visa, inoculations, routine medical examination, minor surface
transportation and communications expenses, porterage fees, in-and-out expenses, airport taxes, and such
other travel related expenses as may be necessary.
26

From To
———
———
———
———
Sir:
Hiring of Consultancy services for——— of — — — — Regarding
Form T-1
Director General
National Rural Roads Development Agency
Ministry of Rural Development,
Government of India, 5 th Floor, NBCC Tower,
Bhikaji Cama Place, New Delhi – 110066.
I/We ——————————— consultant/consultancy firm/organization herewith
enclose Technical and Financial Proposal for selection of my/our firm as consultant for State:-
1. 3.
2. 4.
We undertake that, in competing for (and, if the award is made to us, in executing) the
above contract, we will strictly observe the laws against fraud and corruption in force in India
namely “Prevention of Corruption Act 1988”.
We hereby certify that we have taken steps to ensure that no person acting for us or on
our behalf will engage in bribery.
( Authorized Representative)
Yours faithfully,
Signature: —————
Full name —————
and address: —————
27

Form T-2
ASSIGNMENTS OF SIMILAR NATURE SUCCESSFULLY COMPLETED DURING
LAST (3) 10 YEARS
1. Brief Description of the Firm/Organization:
2. Outline of recent experience on assignments of similar nature:
Sl.No Name of
assignment
Name of
project
Owner or
sponsoring
authority
Cost of
assignment
Date of
commencement
Date of
completion
Was assignment
satisfactorily
completed
1 2 3 4 5 6 7 8
Note: Please attach certificates from the employer by way of documentary proof. (Issued by the
Officer of rank not below the rank of Superintending Engineer or equivalent.)
28

WORK PLAN TIME SCHEDULE
A. Field Investigation
Form T-3
Sl. Item Monthwise Program
No. 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th
B. Compilation and submission of reports
1. Inception Reports
2. 1 st half yearly report
3. 2 nd half yearly report
C. A short note on the line of approach and methodology outlining various steps for
performing the study.
D. Comments or suggestions on "Terms of Reference."
Note :- In case, consultant is tendering for more than one State, they should submit proposal on
separate page for each State.
29

Form No.T-4
Composition of the Team Personnel and the task which would be assigned to each Team
Member
1. Technical/Managerial Staff
Sl.No. Name Position Task assignment
2. Support Staff
Sl.No. Name Position Task assignment
Note :- In case, consultant is tendering for more than one State, they should submit proposal on
separate page for each State.
30

1. Name:
2. Profession/Present Designation:
SUGGESTED FORMAT OF CURRICULUM VITAE
FOR MEMBERS OF CONSULTANT'S TEAM
3. Years with Firm/Organization: Nationality:
4. Area of Specialization:
5. Proposed Position on Team:
6. Education:
Form T-5
(Under this heading, summarize college/university and other specialized education of
staff member, giving names of schools/colleges, etc., dates attended and degrees obtained.
Use up to a quarter page.)
7 Experience:
(Under this heading, list all positions held by staff member since graduation, giving dates,
names of employing organization, title of positions held and location of assignments. For
experience in last ten years, also give types of activities performed including trainings
conducted where appropriate and client references.
Public works account experience will be an added qualification. Awareness / exposure to
World Bank procurement procedures is also required
(i)
(ii)
(iii) and so on
Signature of Staff Member Date:
Note :- In case, consultant is tendering for more than one State, they should submit proposal on
separate page for each State.
31

WORK PROGRAM AND TIME SCHEDULE FOR KEY PERSONNEL
MONTHS
Name Position 1 2 3 4 5 6 7 8 9 10 11 12 No. of
Month
Reports Due/Activities and Duration
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Field Full Time Part Time
Reports Due
Activities Duration
Total
Form T-6
Note :- In case, consultant is tendering for more than one State, they should submit proposal on
separate page for each State.
32

Annexure - 3
Consulting Services
Draft Letter of Agreement for Small Assignments Carried out by Consultants
Subject: Internal Audit of World Bank funded PMGSY work in the Stage of …………
(Name of Consultant)
1. Set out below are the terms and conditions under which (Name of Consultant) has agreed to
carry out for NRRDA the above-mentioned assignment specified in the attached Terms of
Reference.
2. For administrative purposes Director (F&A), NRRDA has been assigned to administer the
assignment and to provide [Name of Consultant] with all relevant information needed to
carry out the assignment. The services will be required in (Name of Project) for about 1
year during the period from _________________ to ________________ .
3. The (Name of Client) may find it necessary to postpone or cancel the assignment and/or
shorten or extend its duration. In such case, every effort will be made to give you, as early
as possible, notice of any changes. In the event of termination, the (Name of Consultants)
shall be paid for the services rendered for carrying out the assignment to the date of
termination, and the [Name of Consultant] will provide the NRRDA with any reports or
parts thereof, or any other information and documentation gathered under this Agreement
prior to the date of termination.
4. The services to be performed, the estimated time to be spent, and the reports to be
submitted will be in accordance with the attached Description of Services.
5. This Agreement, its meaning and interpretation and the relation between the parties shall be
governed by the laws of Union of India
6. This Agreement will become effective upon confirmation of this letter on behalf of (Name
of Consultant) and will terminate on ___________________, or such other date as mutually
agreed between the NRRDA and the (Name of Consultants).
7. Payments for the services will not exceed an total amount of Rs. ________________.
The NRRDA will pay (Name of Consultant), within 30 days of receipt of pre receipted bills
duly verified by the designated officer of the SRDDA in duplicate for respective stages as
follows:
33

Stage
PAYMENT SCHEDULE (1st year)
Rate percentage of Contract
Value
1st 5%
1st six months 2nd six months
Event
After unequivocal acceptance of
letter of Award and submission
and approval of inception report by
NRRDA.
2nd 8% 8%
Upon receipt of six monthly
Preliminary Internal Audit Report
3rd 6% 6%
Upon receipt of six monthly final
draft Internal Audit Report
Upon approval of six monthly
4th 6% 6% Final Report acceptable to
Stage
NRRDA
PAYMENT SCHEDULE (2nd year)
Rate percentage of Contract
Value
Event
1st
1st six months 2nd six months
8% 8%
2nd 6% 6%
3rd 13.5% 13.5%
Upon receipt of six monthly
Preliminary Internal Audit Report
Upon receipt of six monthly final
draft Internal Audit Report
Upon approval of six monthly
Final Report acceptable to
NRRDA
The above remuneration includes all the costs related to carrying out the services, including
overhead and any taxes imposed on [Name of Consultants.]
8. The [Name of Consultants] will be responsible for appropriate insurance coverage. In this
regard, the [Name of Consultants] shall maintain workers compensation, employment
liability insurance for their staff on the assignment. The Consultants shall also maintain
comprehensive general liability insurance, including contractual liability coverage adequate
to cover the indemnity of obligation against all damages, costs, and charges and expenses
for injury to any person or damage to any property arising out of, or in connection with, the
services which result from the fault of the [Name of Consultants] or its staff. The [Name
of Consultants] shall provide the NRRDA with certification thereof upon request.
9. The [Name of Consultants] shall indemnify and hold harmless the NRRDA against any and
all claims, demands, and/or judgments of any nature brought against the (Name of
34

Borrower) arising out of the services by the [Name of Consultants] under this Agreement.
The obligation under this paragraph shall survive the termination of this Agreement.
10. The Consultant agrees that, during the term of this Contract and after its termination, the
Consultant and any entity affiliated with the Consultant, shall be disqualified from providing
goods, works or services (other than the Services and any continuation thereof) for any project
resulting from or closely related to the Services.
11. All final plans, drawings, specifications, designs, reports and other documents or software
submitted by the [Name of Consultants] in the performance of the Services shall become
and remain the property of NRRDA. The Consultants may retain a copy of such documents
but shall not use them for purposes unrelated to this Contract without the prior written
approval of the NRRDA.
12. The Consultant undertake to carry out the assignment in accordance with the highest
standard of professional and ethical competence and integrity, having due regard to the
nature and purpose of the assignment, and to ensure that the staff assigned to perform the
services under this Agreement, will conduct themselves in a manner consistent herewith.
13. The Consultant will not assign this Contract or sub-contract or any portion of it without the
NRRDA prior written consent.
14. The [Name of Consultants] shall pay the taxes, duties fee, levies and other impositions
levied under the Applicable law and the NRRDA shall perform such duties, in regard to the
deduction of such tax, as may be lawfully imposed.
15. The [Name of Consultants] also agree that all knowledge and information not within the
public domain which may be acquired during the carrying out of this Agreement, shall be,
for all time and for all purpose, regarded as strictly confidential and held in confidence, and
shall not be directly or indirectly disclosed to any person whatsoever, except with the
NRRDA written permission.
16. Any dispute arising out of the Contract, which cannot be amicably settled between the parties,
shall be referred to adjudication/arbitration in accordance with Arbitration & Conciliation Act
1996.
Place:
Date: .................................... (Signature of Authorized
.................................... Representative on behalf of
.................................... Consultant)
....................................
.................................... (Signature & Name of the
Client’s Representative)
35