Annual Report 2011-12.pdf - Performance Management Division

A joint tendering mechanism was evolved for supply and installation of VVIP/VIP chairs and
media chairs for five venues. We found a systematic pattern of calculations and re-calculations for
inflation of rates, which ultimately benefited the vendor, Superior Furnitures.
We found excessive “redundancy” in power supply arrangements for the venues, including
installation of DG Sets as permanent fixtures, installation of UPS, and hiring of additional DG
sets of huge capacity by OC.
2. Jawaharlal Nehru Stadium
In Jawaharlal Nehru Stadium, we found instances of non-adjustment for work not executed, extra
payments for work already covered by the scope of the lumpsum contract, and non-levy of
compensation for delayed completion of the work of the membrane roof. We found deficiencies in
execution of work in the construction of the weightlifting auditorium at JNS, and common areas.
3. Dr. SPM Swimming Pool Complex
The main work of Dr. Shyama Prasad Mukherjee Swimming Pool Complex was awarded on
lumpsum contract. We found a number of concessions to the contractor, in deviation from the
spirit of the lumpsum contract- large number of extra items, additional payment for work covered
in the original contract, as well as substitution of the original galvalume roof with an aluminum
roofing system, due to the failure of the contractor. The essence of the lumpsum character of the
contract was, thus, defeated. There were also instances of poor quality of work execution.
4. IG Stadium Complex
Work at the Indira Gandhi Stadium Complex involved upgration/construction of venues for cyling,
gymnastics and wresting. We found that a firm, otherwise ineligible for the composite work of the
indoor cycling velodrome, was irregularly qualified. Strangely, competition for laying the
permanent timber track for the velodrome was limited to Indian furniture contractors (in
association with an international track design and construction expert), with no attempt to float
international tenders. This was compounded by dilution of eligibility criteria. There were
deficiencies in the bidding process for the wrestling stadium, ultimately resulting in a single
financial bid, which raises concerns on the competitiveness of the bidding process. Numerous
irregularities/relaxations in the tendering process for different works relating to gymnastics
stadium, hostel/media centre and roads, boundary wall etc. to favour a particular bidder,
Swadeshi Construction Co. was also observed.
5. Major Dhyan Chand Stadium
In the case of the Major Dhyan Chand Stadium, audit revealed dilution of pre-qualification
criteria benefiting a particular contractor. Estimates were lowered substantially from the RFQ to
the RFP stage, which may have discouraged larger companies from participating. We also found
that the 'justified” rates calculated by the CPWD did not truly reflect the market, as there was
evidence of much lower rates for components of the main work outsourced agencies. Also despite
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