(VERSION-IV) - DVC :: Consumer Login

45. CONSIDERATION OF PURCHASE PROPOSAL/WORK ORDER PROPOSAL:
Before recommending or taking decision on a contract proposal, the Tender Committee are
advised to check the comparative/ranking statements of the offers prepared vis-à-vis the tenders
received so as to avoid the possibility of any mistake and examine carefully the following aspects
to ensure that the proposal:
a) Brings out the reliability of the firms whether they are registered with DGS&D/NSIC/, etc., for
the store as per the required specification, date on which they are registered and if
unregistered their capacity/capability based on the report furnished by technical authority,
financial status, etc., as per the departmental rules and regulations.
b) Avoids the tendency to place orders on firms quoting low rates but with poor or no prospect of
supply/ no prospect of completing the work as per the delivery requirements/ completion
schedule of the indent/proposal.
c) Gives due consideration to the price aspect whether firm or variable, and, in the latter case, the
elements affecting the price.
i) Where quotations are invited exclusive of Sales Tax/VAT, the Tender Committee should
keep in view the amount of Excise Duty & Cess / and Sales Tax/VAT wherever the same is
stipulated as an extra item in the tender and is leviable under the law. In working out the
ultimate cost to the indenter, at the time of tender decision, the element of Excise Duty / Ed.
Cess / Sales Tax / VAT should also be taken into consideration.
ii) All purchase proposals should clearly mention whether or not prices quoted in tenders are
inclusive or exclusive of Sales Tax / VAT/ Service Tax. The tender rates reproduced on the
purchase proposals should be followed by the remarks such as “No Sales Tax” or “Sales
Tax / VAT / Service Tax Extra”, and in the latter case the name of the State Sales Tax /
VAT / Sales Tax with the rate thereof based on the firm’s stipulation in tender should be
indicated.
d) Price reasonability to be analyzed for acceptance of the offer by comparing it with LPP/ last
work order value, market price etc.
e) Gives due consideration to the delivery period/ completion schedule offered vis-à-vis the
requirement of the indenter/ proposer.
f) Analyses the past performance of the firm, if they have executed any orders or if they are in
the process of executing any contract(s).
g) While proposing a second order on a firm who has not started supplies/ works against their
earlier order, the total load on the firm should be kept in mind together with their financial
capability as well as the capacity of the firm.
h) Leads to placement of order on firm(s) who have agreed to abide by the Conditions of Contract
and Clauses of Tender Enquiry and that they have not stipulated any abnormal conditions in
their offer (s).
W& P Manual – 2012 Page 72