Revised Proc Manual 2012 DT 18032014

BHARAT SANCHAR NIGAM LIMITED
(A Government of India Enterprise)
REVISED
MANUAL OF PROCUREMENT
OF
TELECOM EQUIPMENT
AND
STORES
(Corrected upto 20th March 2014)

(Effective from 15th April 2014)
Issued by MM Section
Bharat Sanchar Nigam Limited
Bharat Sanchar Bhawan, Janpath
New Delhi - 110001
Visit us at: www.bsnl.co.in
BSNL Revised Procurement Manual 2012
Page 1
INDEX
1.
PREAMBLE ............................................................................................. 5-8
1.1. Introduction ................................................................................................. 5
1.2.
Negotiations Route ...................................................................................... 6
1.3.
Limited tender Route ................................................................................... 6
1.4.
Expression of Interest Route ....................................................................... 7
1.5.
Managed Services and Managed Capacity Route ...................................... 7
1.6.
Rate Contract Route.................................................................................... 8
1.7.
E-Procurement ............................................................................................ 8
CHAPTER - 2.................................................................................................... 9-14

2.
GUIDELINES FOR USER SECTIONS......................................................... 9
2.1. Role of the User Section ............................................................................. 9
2.2.
Need/ Quantity ............................................................................................ 9
2.3.
Forecasting Methods ................................................................................. 10
2.4.
Estimated Rates ........................................................................................ 11
2.5.
Deciding the Eligibility Criteria ................................................................... 11
2.6.
Guidelines for Framing the Specifications and Technical Requirements... 11
2.7.
Schedule of Requirement (SOR) ............................................................... 13
2.8.
Special Instructions to Bidders and Special Conditions of Contract .......... 13
2.9.
Authorities competent to purchase goods and their Purchase Powers ..... 13
2.10. Check-List for Requisition for Procurement of Material ............................. 13

CHAPTER - 3.................................................................................................. 15-23
3.
BID DOCUMENTS .................................................................................... 15
3.1. Preparation of Tender Enquiry Document ................................................. 15
3.2.
Standard Tender Enquiry Document ......................................................... 15
3.3.
Section-1Detailed Notice Inviting Tender (DNIT)& Newspaper NIT.. ...... 16
3.4.
Section-2 Tender Information ..............................................................17
3.5.
Section-3Scope of work, Tech. Specs./ Requirements & SOR.. 17
3.6.
Section-4 A - General Instructions to Bidders(GIB)...18
3.7.
Section-4 B - Special Instructions to Bidders (SIB) .................................. 18
3.8.
Section-5 AGeneral (Commercial) Conditions of Contract (GCC) ....... ..20
3.9.
Section-5 B Special (Commercial) Conditions of Contract (SCC)...20
Page 2
3.10. Section 9 Price Schedule ....................................................................... 23

3.11. Pre-bid clarifications and amendments in the tender document ................ 23
CHAPTER - 4................................................................................................ 24-102
4. STANDARD TENDER ENQUIRY DOCUMENT. ...........................24
SECTION 1 Part A - DETAILED NIT .26
SECTION-1 Part B - NEWSPAPER NIT...........................................................30
SECTION - 2 TENDER INFORMATION.32
SECTION-3 Part A - SCOPE OF WORK .... 34
SECTION-3 PART B - TECH. SPECS./ REQUIREMENTS ..35
SECTION-3 PART C - SCHEDULE OF REQUIRMENTS .....36
SECTION-4 PARTA - GENERAL INSTRUCTIONS TO BIDDERS (GIB) ..37
SECTION 4 PART B - SPECIAL INSTRUCTIONS TO BIDDERS ..57
SECTION-4 PART C - E-TENDERING INSTRUCTIONS TO BIDDERS ..60
SECTION-5 PART A - GENERAL (COMMERCIAL) CONDITIONS OF
CONTRACT67
SECTION-5 PART B - SPECIAL (COMMERCIAL) CONDITIONS OF
CONTRACT.. .........80
SECTION-5 PART C - GENERAL CONDITIONS of AMC ........82
SECTION-6 ...86
PART A- UNDERTAKING & DECLARATION.86
PARTB - NEAR RELATION CERTIFICATE ....... 87
SECTION -7 - PROFORMAS ........... 88
PART A - BID BOND GUARANTEE ........88
PART B - PERFORMANCE GUARANTEE ....90
PART C - LETTER OF AUTHORISATION FOR ATTENDING BID OPENING .. 92
PART D - Model Amendment Letter Intimating Conditions for Extension
OF DELIVERY PERIOD ........93
PART E - Model Amendment Letter for Extension of Delivery Period....95
SECTION- 8 - BIDDER'S PROFILE AND QUESTIONNAIRE ...97
SECTION-9 ..........99
PART-A - BID FORM .....99
PART-B (I) - PRICE SCHEDULE FOR INDIGENOUS EQUIPMENT ......101
PART-B (II) - PRICE SCHEDULE FOR IMPORTED EQUIPMENT ...102
Page 3
CHAPTER-5 - BID BOND GUARANTEE OR EARNEST MONEY DEPOSIT

(EMD)....103-104
CHAPTER-6 - OPENING OF BIDS...105-108
CHAPTER-7 - FORMATION OF COMMITTEE FOR EVALUATION OF
TENDER/ EOI (CET) .... 109-110
CHAPTER-8 - GUIDELINES TO COMMITTEE FOR EVALUATION OF
TENDER/ EOI (CET)......111-114
CHAPTER-9 - ACCEPTANCE OF EVALUATION REPORTS AND FRAMING OF
PURCHASE PROPOSALS..115-116
CHAPTER-10 - PERFORMANCE BANK GUARANTEE..117-119
CHAPTER-11 - ADVANCE PURCHASEORDER 120
ADVANCE PURCHASE ORDER FORMAT ..121
CHAPTER-12 PURCHASE ORDER .....125
PURCHASE ORDER FORMAT ......126
CHAPTER-13 - GUIDELINES FOR PLACEMENT OF EDUCATIONAL
ORDERS..130-131
CHAPTER-14 - PRICING AND PRESERVATION OF THE TENDER
DOCUMENTS.132-133
CHAPTER-15 - CONCESSIONS TO MSE UNITS.... 134
CHAPTER-16 - VENDOR RATING SYSTEM ... 135-140
CHAPTER-17 - COPIES OF LETTERS/ CIRCULARS/ ANNEXURES....141-155
CHAPTER-18 - FLOWCHART OF PROCUREMENT PROCESS........156-157
CHAPTER-19- GUIDELINES FOR TAKING ACTION AGAINST VENDORS
WHO DEFAULT
158-167
APPENDIX-1 TO SECTION 4 PART A UNDER CHAPTER 4 for

STANDARD TENDER ENQUIRY DOCUMENT..168-175
Page 4
CHAPTER 1
1. PREAMBLE
1.1. Introduction
1.1.1. BSNL's aim is to procure the material of the specified quality, at the most
competitive rates, in a fair, just and transparent manner. Procurement is an
important activity in BSNL as about 50% of its budget is used for
procurement of materials. Consequent upon corporatization of Department
of Telecom Services & Department of Telecom Operations into a Corporate
Entity i.e. BSNL, a need has been felt to modify the existing procurement
procedure being followed by BSNL Corporate Office as well as by Telecom
Circles so as to cut down the procurement time in the present liberalized
telecom market. This is all the more necessary as BSNL is facing increasing
competition in all types of services and has to respond quickly for
procurement of materials as well as its utilization so as not only to keep its
market share in the emerging telecom scenario but also to expand and
acquire new market segments.
1.1.2. The procurement of materials in BSNL is usually done by inviting tenders
and also through M/s ITI Ltd. against their reservation quota (as per
guidelines issued by Department of Telecommunications from time-to-time).
The procurement is done at two levels viz.,
BSNL Corporate Office
Telecom Circle H/Q
1.1.3. The procurement of materials in BSNL Corporate Office is done for high
value critical equipments such as large size switching equipment,
transmission equipment, PIJF U/G Cables, WLL equipment & terminals and
new technology equipments etc. A list of items being procured at the BSNL
Corporate Office is enclosed at Annex-1.1.
1.1.4. Items not covered in the list given at Annex-1.1 stand decentralized for
procurement by Telecom Circles. In addition, CGM Telecom Stores,
Calcutta has been entrusted with the procurement of following items for
some designated Circles:
Batteries & power plants.
Line & Wire materials.
1.1.5. This manual contains the detailed procedures, guidelines to be followed by
BSNL Corporate Office as well as by Telecom Circles to ensure smoother
and faster decision making. While the Manual aims at providing broad
procedures for procurement of goods/ services, the decision regarding the
competent authority should be taken on the basis of Schedule of Delegation
of Administrative and Financial Powers issued by Corporate Office. For
purchase without quotations and purchase of goods by a purchase
committee, the delegation of powers should be referred.
Page 5
1.1.6. With the formation of BSNL as a corporate entity in a Liberalized Telecom

Market where BSNL has to compete with a large number of competitors, it is
imperative for BSNL to serve in the competitive environment. For such a
scenario, it is essential not only to see the cost of materials being procured
but also the time required for its procurement as well as successful
implementation so as to make its presence felt among various competitors.
Thus, not only the cost and time factor is required to be taken into
consideration but at the same time the cost of opportunity lost due to long
gestation period of procurement and implementation is also to be taken into
consideration i.e., the business opportunity is also one of the most important
factors for implementation of any such venture/project. Hence, under such
circumstances, it is essential to take an overall view for cost of material, time
for procurement, method of procurement as well as business opportunity for
any such venture/ project. In such a situation, the Management Committee /
BSNL Board may decide the methodology to be adopted for such
procurement taking into consideration cost, time as well as business
opportunities as situation warrants. In addition to open tendering, the
following methodologies can be adopted:
1.2.
Negotiations Route
In a situation where the requirement is of an immediate nature and it is
necessary to ensure continued supplies or addition of new features from the
existing vendors, the BSNL management committee may decide to place
repeat orders upto 100% of the quantities contained in the running contract
and at a rate negotiated with the existing vendors considering the prevailing
market conditions. Depending upon the total value of additional procurement,
the negotiation committee can be constituted with the approval of competent
authority of BSNL. This route will however be resorted to in exceptional
circumstances.
1.3. Limited tender Route

1.3.1. There are certain specific provisions for calling the limited tender appearing
in Para 31 to 36 under Rule 128 in the General Financial Rules (GFRs). The
limited tender option has to be exercised in specific circumstances as
already provided.
1.3.2. In some cases the equipment is sophisticated and requires thorough
technical screening, testing and prototype approval by the Telecom
Engineering Center/Quality Assurance to ensure that these equipments are
of sufficient quality level to be used in public Telecom Network. In such
cases an open tender may result in the participation of unknown bidders in
open tenders, whose capability in making such equipment is yet to be
established. They may submit unrealistic bids which may cause major
difficulties in the tender evaluation process. In such cases, it would be
Page 6
necessary to screen out such bidders so that BSNL could interact only with
bidders who have intrinsic capability as well as proven track record of
supplying such sophisticated equipment. Where such equipments are
required, it would be worthwhile restricting Bids by issue of limited tenders
only to those parties who have proven expertise in manufacture and supply
of such equipment and who have prototype approval and production
clearance. In such tenders it is essential that the reasons for limiting the
tenders to proven suppliers needs to be brought out in the NIT itself so that
such an action would stand justified. The issue of such limited tender should
have the concurrence of Financial Advisor and personal approval by the
head of the unit.
1.4.
Expression of Interest Route

In situations where BSNL proposes to induct new technology/ equipment/
new service and the specifications of the new technology/ equipment/ new
service are not firmed up, BSNL may invite Expression of Interest (EOI) from
the available vendors of that technology/equipment/new service. Based on
the offers received from the bidders who choose to participate in the EOI, the
bidders satisfying the terms of EOI will be short-listed. Before short listing the
participants for handing over the tender documents, BSNL may freely
interact with them, obtain clarifications and feedback on the delivery of
similar equipment/services elsewhere. The short listed bidders will be given
the tender document containing detailed technical, commercial and financial
conditions. After evaluation by a designated committee, the contract shall be
awarded with the approval of competent authority to the successful bidder(s)
as per the terms and conditions stipulated in the EOI and the technical,
commercial and financial bids.
1.5.
Managed Services and Managed Capacity Route

Managed Service is the practice of transferring day-to-day related
management responsibility as a strategic method for improved, effective and
efficient operations. Typical managed services may be network build (i.e.
managed capacity), including planning and design, field operations, Network
Operation Center (NOC) operations, application and service development,
billing, etc. Many private operators have chosen to outsource laying out the
network to third party companies. Using other Service providers telecom
towers is the latest trend which falls under managed services. In future,
BSNL may also opt for managed service and/ or managed capacity model for
which guidelines would be issued subsequently. However, this route shall be
applied only on cases specifically approved by BSNL Board/ Management
Committee.
Page 7
1.6.
Rate Contract Route

Certain routine items/ services of mass consumption are required in the
organization, but their precise quantity may not be known. In such cases, the
rate contract (RC) route of procurement may be adopted valid for a specific
period not exceeding a year. BSNL should have own rate contracts and
should not depend on other agencies for this purpose.
1.7.
E-Procurement
Procurement through e-procurement and e-tendering should be encouraged.
E-Tendering is the carrying out of the tendering process through the Internet,
using e-tendering software applications. This promotes competition for the
tender, and provides a process that is efficient for both the buyer and
suppliers and a selection process that is transparent to bidders. The process
results in a host of tangible and intangible benefits to both parties. The ERP
project is being implemented and this would provide a platform for
e-procurement in BSNL. The modalities and procedures for e-procurement
are being framed and shall be issued separately. Meanwhile a set of
instructions in this regard has been brought out in Chapter 4 of the Manual. It
has been decided to process the Procurement cases of amount of Rs 1
Crore and above through e-tendering method.
***
Page 8
CHAPTER 2
2. GUIDELINES FOR USER SECTIONS
2.1. Role of the User Section
2.1.1. The User Section (i.e. the Unit that has raised the requisition e.g. Planning/
Operations/ Marketing/ Administration/ any other unit) is primarily
responsible for deciding and getting approval of the competent authority for
the quantities to be procured, the estimated cost of procurement, the
eligibility conditions, specifications, technical requirements, Schedule of
Requirements and the conditions specific to the procurement. Further, after
bid opening, the evaluation is carried out by a Committee whose Chairman/
Convener is usually from the concerned User group. As such, the User
Section has a very important role right from inception of the procurement
requirement till the finalization of the tender.
2.1.2. Delay in finalization of tenders often leads to delay in project rollout and
revenue loss. Often, the delay could be avoided if the tender conditions and
requirements are framed meticulously. Some of the common reasons for
delays are mentioned below:
The eligibility conditions being restrictive, the unsuccessful bidder
complains/ goes into litigation.
The technical requirements are too idealistic and many bidders are
unable to meet some or the other requirement. This leads to loading/
rejection/ relaxation and hence associated delays.
Contradictory clauses in the bid document.
The technical requirement getting amended during pre-bid clarification
leading to ambiguity. As a result, the loading, etc. is challenged by
bidders.
2.1.3. In this chapter, broad guidelines are provided which should be kept in view
before floating a tender enquiry. The correct decision will continue to depend
on experience and good judgment of the concerned sections.
2.2. Need/ Quantity
2.2.1. The starting point of the procurement process for any item is estimation or
forecast of its requirements to be reflected in the tender documents. The
price of the item has a bearing on the quantity being tendered for example,
higher the quantity, more the chances of price being lower for the same item.
2.2.2. Provisioning is the basis for any purchase. Excessive provisioning without
taking into consideration the important aspects like available stock,
outstanding dues/supplies, past consumption pattern and the average life of
the equipment/ item etc. results in infructuous expenditure both in term of
procurement cost and the inventory carrying cost. The projection and
provisioning must be judicious and justified depending on various factors
Page 9
including usage pattern. One time purchase for project or capital equipment/
spares should be properly justified taking into account the obsolescence
factor, etc.
2.3. Forecasting Methods
2.3.1. For all items being procured, the forecast of the equipment is obtained from
the concerned user branches that plan for the induction of such equipment
into the network. The requirement of the equipment, usually for one year,
against each project or by each Circle is worked out after discussion with the
concerned Head of the circle/ SSA and finalized by the User Branch. Some
of the parameters based on which the forecast should be made are as
follows.
a) Target of gross DELs, WLL, Cellular Mobile, Broadband, Lease Lines,
etc to be provided.
b) Target of Village Public Telephones to be provided.
c) Requirement of Transmission media, Power Plants, Batteries and
Terminal Equipment.
d) Requirement under "New Programmes/ Services".
e) Requirement of service(s) in view of competition from other telecom
service providers.
f)
Special upgradation requirements, including those due to technological,
licensing or regulatory requirements.
g) Maintenance Requirements.
h) Spares.
2.3.2. The lead time for procurement has an important bearing in these
requirements e.g. items having longer lead time need to be procured for
requirement over a longer time frame whereas items having very short lead
time can be procured for commensurately shorter period of requirements.
2.3.3. While forecasting the requirements, it is necessary to keep in mind the
necessity of ensuring that the projects covered in the requirements are
planned projects which have been approved by the competent authorities,
for which funds are provided and are backed-up by estimates sanctioned by
the competent authorities.
2.3.4. In the cases where the supplier of the equipment or the production of
equipment depends on imported components, it is necessary to have an
accurate forecast so that the cost of equipment is shielded from rapid
changes in the exchange rate over a longer period of time.
2.3.5. Planning/ forecast for the next financial year should normally start in
September of the preceding year to ensure availability of equipment well in
time for the next financial year.
Page 10
2.4. Estimated Rates

2.4.1. Estimated rates are often worked out in an adhoc, unprofessional and
perfunctory manner, at times by extrapolating the price of the lowest capacity
equipment or by applying a uniform yearly compounded escalation over the
prices of similar equipment purchased few years ago. As estimated rate is a
vital element in establishing the reasonableness of prices, it is important that
the same is worked out in a realistic and objective manner on the basis of
prevailing market rates, last purchase prices, economic indices for the raw
material/ labour, other input costs and assessment based on intrinsic value
of the item etc.
2.4.2. The estimated rates should be worked out while keeping in view the above
on case-to-case basis and should be vetted by finance wing before issue of
NIT.
2.5. Deciding the Eligibility Criteria
2.5.1. Credentials, manufacturing capability, quality control systems, past
performance for the goods in question, facility for after-sales service,
financial background etc. of the supplier(s) may be considered while framing
the eligibility conditions.
2.5.2. In case there is a change in the eligibility conditions with reference to the last
successful procurement of same item, or if the good is being procured for the
first time, then before issue of NIT it should be checked that sufficient bidders
would meet the eligibility criteria. A vendor conference, before issue of NIT,
with established suppliers, Original Equipment Manufacturers (OEMs) may
be held, if required.
2.5.3 The eligible Micro & Small Enterprises (MSEs) shall be given the
preferences as detailed in Chapter 15.
2.5.4 Requirement for minimum financial turn over Criteria
The prequalification criteria in respect of minimum annual financial turnover
of a bidder should be kept in such a way as to facilitate the participation of
bidders. It should neither be very stringent nor too lax. It should be decided
by the respective Business Unit Head on case to case basis.
2.5.5 Requirement for experience criteria
The prequalification criteria in respect of experience of the bidder in respect
of having performed similar works should also be part of eligibility.
The criteria regarding satisfactory performance of equipment/ stores
supplied or satisfactory execution of works etc. may be incorporated
according to the requirement of Project/procurement on case to case basis.
2.6.
2.6.1.
Guidelines for Framing the Specifications and Technical Requirements

The specification of the required good should be framed in such a manner
that it attracts sufficient number of bidders. The specification, while
maintaining the essential requirement of the user department, should not be
Page 11
too restrictive or too lenient. Efforts should also be made to use standard
specifications which are widely known to the industry.
2.6.2. The specifications in terms of quality, type etc., as also quantity of goods to
be procured, should be clearly spelt out keeping in view the specific needs of
the user sections. The specifications so worked out should meet the basic
needs of the organization without including superfluous and non-essential
features, which may result in unwarranted expenditure. Care should also be
taken to avoid purchasing quantities in excess of requirement to avoid
unnecessary inventory carrying costs.
2.6.3. Specifications should call for new unused goods.
2.6.4. Specifications shall aim at the latest proven technology and procurement of
obsolete goods/ technology shall not be made.
2.6.5. Specifications should have emphasis on factors like efficiency, optimum fuel/
power consumption, use of environmental friendly materials, reduced noise
& emission levels, low maintenance cost etc.
2.6.6. The specifications should also take care of the countrys mandatory and
statutory regulations, if any, applicable for the goods to be purchased.
2.6.7. Except in case of proprietary purchase from a selected single source, the
specification must not contain any brand name, make or catalogue no. of a
particular manufacturer and if the same is unavoidable due to some
compelling reasons, it should be followed by the words or equivalent.
2.6.8. The specifications and the technical details should be expressed with proper
clarity without any ambiguity or double meaning. Wherever necessary, the
written specification should be supplemented with drawings for additional
clarity etc.
2.6.9. Deciding tender only on the basis of tender sample is too subjective.
Therefore, unless specifically decided due to some reasons duly recorded
with the approval of competent authority, tender sample clause shall not be
incorporated in the specification. If necessary, suitable stipulations for
submission of advance sample (before starting bulk production) by the
successful bidder may be incorporated in the specification.
2.6.10. In some cases, the technical parameters may be marginally different from
the TEC GRs. In such cases, the general principle shall be to adopt the TEC
GRs and the BSNL specifications could cover only such additional details
and/ or deletions as are specially required to be complied for a particular end
use. In cases where TEC GRs do not exist or, alternatively, decision has
been taken to try the foreign market also, International Standards (like ISO,
ITU, IEEE, EIA etc.) may also be adopted. Where no widely known
standards exist, the specification shall be drawn in a generalized and
broad-based manner to obtain competitive bids from different sources. As far
as possible the specifications shall be drafted keeping the BSNLs
requirements in mind. The concerned user section shall decide, with the
approval of competent authority, the extent of references to full or part of the
Page 12
TEC GR suiting to the actual BSNL network requirements.

2.6.11. For large infrastructure projects or turnkey projects, the Detailed Technical
Requirements (DTR) should be prepared covering the solution architecture,
services to be supported, existing network architecture, functional and
technical requirements of the product, any other requirement.
2.7.
Schedule of Requirement (SOR)

The Schedule of Requirement (SOR) should be prepared meticulously and it
should be clearly indicated that what details are expected in the detailed Bill
of Material (BOM) for each SOR item. This issue should be specially
considered while dealing with projects having number of SOR items.
2.8.
Special Instructions to Bidders and Special Conditions of Contract

The user section in consultation with the MM cell may introduce additional
instructions to bidders and special commercial conditions of contract, as
necessary. These special conditions and/ or instructions shall constitute the
Section- 4 B & 5 B of the tender enquiry document as explained in Chapter 3.
2.9.
2.9.1.
Authorities competent to purchase goods and their Purchase Powers

An authority which is competent to incur contingent expenditure may
sanction the purchase of goods required for use in BSNL in accordance with
Schedule of Delegation of Financial Powers issued by BSNL Corporate
Office, following the general procedure contained in this manual.
The Board of Directors of BSNL has full powers for procurement of goods
and services.
A demand should not be split into small quantities for the sole purpose of
avoiding the necessity of taking approval of the higher authority required for
sanctioning the purchase of the original demand.
Amendment in any commercial condition of the contract may be with the
explicit approval of Management Committee of BSNL Board.
2.9.2.
2.9.3.
2.9.4.
2.10. Check-List of Items in a Requisition for Procurement of Material

2.10.1. Information to be given by user section to MM Cell along with requisitions
for tender to be issued
S. No.
Item
Status
(Y/N)
1
Details of items along with quantity
2
Administrative approval of competent authority
3
Concurrence from finance for the quantity to be
tendered
4
Approximate financial implications of procurement.
5
Technical specification No(s) (sufficient copies of
each Tech. Spec. to be given)
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7
8
9a
9b
9 b (i)
9 b (ii)
10
11
12
13
14
15
16
Evaluation of Tender on package basis/ individual

item basis (package to be defined in case of
package evaluation)
Single-Stage/Two-stage bidding and single/two
stage bids opening
Certificate regarding availability of Funds
Whether indigenous or import through global
Tender
In case of import through global tender
Against rupee payment or foreign exchange.
Source of Foreign Exchange Funding (Free or
Credit)
Sections 2, 3B, 3C, 4B , 5B and 5C approved by
the competent authority
Bid Security/ Earnest Money Deposit value
Eligibility Criteria approved by Competent authority
Delivery Schedule (in case any specific schedule is
desired)
Training requirement: No. of trainees, type of
Training, duration of each type of training, place of
training etc.
Requirement of spares, tools & testers etc
Any special conditions to be added in the Bid
Document
This issues with the approval of PGM ( ) / GM (
)/ concerned head of User Unit
(signature)
AGM ( )/ DGM ( )
User Section
2.10.2. Incomplete requisitions not containing above data will be returned forthwith.
2.10.3. This checklist duly filled in and approved by the concerned
PGM/GM/concerned head of User Unit should be signed by an officer not
lower than AGM and submitted along with the Requisition by concerned
User Section.
Page 14
CHAPTER 3
3. BID DOCUMENTS
3.1. Preparation of Tender Enquiry Document
3.1.1. A set of Standard Tender Enquiry Document has been prepared in line with
the purchase policy of BSNL. The broad procedures for tendering process
and contract management are available in Section-4 Part A and Section-5
Part A of this Standard Tender Enquiry Document. The officials handling
purchases must, at the outset, get themselves acquainted with the rules,
regulations, procedures etc. contained in these chapters. This standard
document should be utilized for preparing tender enquiry document while
incorporating specific requirements on case-to-case basis.
3.1.2. While formulating the tender enquiry document, care should be taken to
avoid contradictions among the stipulations incorporated in the document.
Duplications should also be avoided, except where duplication is
unavoidable and necessary.
3.1.3. The tender enquiry document should not contain any footnote or vague
stipulation, which may create confusion in the mind of the bidder.
3.2. Standard Tender Enquiry Document
3.2.1. The text of the Standard Tender Enquiry Document has been grouped under
different broad sections in order to streamline the purchase system and also
to make the system transparent, comprehensive, efficient and user-friendly.
The broad sections of the document are :
Section No.
Item
1.Part A
Detailed NIT
1. Part B
Newspaper NIT
2.
Tender Information
3 Part A
Scope of work
3 Part B
Technical Specifications/ Requirements
3 Part C
Schedule of Requirements(SOR)
4 Part A
General Instructions to Bidders(GIB)
4 Part B
Special Instructions to Bidders(SIB)
4 Part C
E-tendering Instructions to Bidders (If applicable)
5 Part A
General (Commercial) Conditions of Contract (GCC)
5 Part B
Special (Commercial) Conditions of Contract (SCC)
5 Part C
General Conditions of AMC ( If applicable)
Page 15
6.
Undertaking & declaration
7.
Proforma (s)
8.
Bidders profile & Questionnaire.
9.
Bid Form & Price Schedule
3.2.2. A reading of the sections of the tender enquiry document, in the above order
will make it amply clear about the purpose and instructions behind the same.
However, some broad guidelines for using this document (viz. Standard
Tender Enquiry Document) are provided in the subsequent paragraphs.
3.3.
Section-1Detailed Notice Inviting Tender (DNIT) & Newspaper NIT

(NNIT)
3.3.1. The Detailed Notice Inviting Tender (DNIT) should contain:
Brief description of the goods and quantity
Eligibility conditions
Period and terms of delivery
Cost of the tender/ bidding document
Place(s) and timing of sale of tender documents
Place and deadline for receipt of tenders
Place, time & date for opening of tenders
Amount of Bid Security / Earnest Money Deposit
Any other important information
3.3.2. A sample format of NNIT is placed below (refer Section-1Part B of the
Standard Tender Enquiry Document also).
NOTICE INVITING TENDER

Tender No. MM/./T./2012-13 dated ..
Sealed tenders are invited by. (Write Designation of Officer
approving inviting of tender) e.g. CMD, BSNL from the prospective bidders
for the following work:
Name of the work
Quantity (With Unit)
Estimated cost in Rs.
Last date of receipt of tender is .............. up to Hours.

For further detailed information, kindly visit our website www.bsnl.co.in& follow Link
for E-tenders by BSNL.
DGM (MM)
Tel. No. ,FAX No.
Page 16
3.3.3. The Detailed Notice Inviting Tender (DNIT) shall be put in the format at Para
3.3.1 above on the Website of BSNL i.e. www.bsnl.co.in or website of
respective Circle and provide a link with NIC website& e-tendering portal.
3.3.4. BSNL shall publish a brief advertisement of equipment/ items to be procured
and their quantity for information of prospective bidders in National
newspapers in the format as per Section 1 Part B.
3.3.5. The procedure for publication of NNIT in concise format in one National Daily
with wide publication and Indian Trade Journal, Kolkata along with its display
in detail on BSNL website having a link with NIC will be mandatory for a
tender for and above threshold value of Rs. 25 lakhs in case of procurement
of goods/ materials/ equipments and Rs. 10 lakhs in case of tender for hiring
of services. For tenders below Rs. 25 lakhs in case of procurement and
below Rs. 10 lakhs in case of hiring of services, display of NIT on BSNL
website with form downloadable facility and sending it to minimum six
eligible bidders will be mandatory.
3.3.6. After issue of NIT, eligibility conditions should not be changed.
3.4
Section 2-Tender Information

This section provides important information of the tender in respect of
Tender methodology, Type of Tender, Envelope system, Bid validity,
Payment terms, Delivery Schedule, consignee details etc.
Section 3- Scope of Work, Technical Specifications/Requirements and

SOR
3.5.1 Section 3 A provides information on Scope of Work.
3.5.2 Section 3 B -Technical specifications/Requirements.
3.5.2.1 Aspects to be considered while framing the Technical Requirements and
Specifications are mentioned in the previous chapter in Para 2.6.
3.5.2.2 There shall be no change in specifications once tender has been opened.
Purchase orders and supplies shall be strictly as per the specifications laid
down in the tender. Delivery period extension for purchase order, if
considered, shall also be with the same specification as given in tender.
Any change in specifications after issue of tender shall be applicable to
subsequent tenders only.
3.5.3
Section 3 C-Schedule of requirements (SOR)
3.5.3.1 The Schedule of Requirements (SOR) should clearly indicate all the
essential details of the required goods and services, measurement unit,
total quantity etc. Para 2.7 of the previous chapter may also be referred.
3.5.3.2 Requirement of detailed bill of material (BOM) for each SOR item should
be clearly mentioned wherever applicable. The note in Section-3 Part C of
the Standard Tender Enquiry Document in Chapter 4 may be referred.
3.5.3.3 If the list of requirements contains more than one schedule; each schedule
should be described in a self-contained manner along with the applicable
3.5
Page 17
Note:
3.6
earnest money. The period of delivery and terms of delivery are also to be
incorporated and if these two aspects differ from schedule to schedule, the
same should be properly clarified in the Schedule of Requirements.
Section-3 Part A, B & C have to be prepared by the concerned user
section.
Section-4 Part A General Instructions to Bidders (GIB)
This section provides all the necessary information as well as guidance to
the prospective bidders for preparation and submission of their bids. In
addition, this section informs the bidders about the tender opening
procedure and also how the bids will be scrutinized, evaluated and ranked to
decide the lowest evaluated responsive bid for placement of the contract.
This section is to be included unchanged in every tender enquiry document.
However, for every purchase case, there will be distinct purchase specific
information and data, which are to be made known to the prospective
bidders. Such needs are to be taken care of in Section 4 Part BSpecial
Instructions to Bidders as elaborated in the subsequent paragraphs.
3.7
Section-4 Part B - Special Instructions to Bidders(SIB)
3.7.1 The issues and the areas for which specific data/ details are to be provided
for a purchase case can be located easily by going through the clauses of
the General Instructions to Bidders (GIB) under Section-4 Part A. Further, for
certain aspects of a particular purchase case, necessity may arise to
incorporate additional special instructions. These include clauses for
eligibility conditions, value of bid security, single-stage or two-stage bidding,
opening stages, additional documents to be submitted, evaluation criteria,
etc. However, while doing so, care should be taken not to violate any
instruction/ directive contained in the procurement policies of BSNL.
3.7.2 The User Section (i.e. the Unit that has raised the requisition e.g. Planning/
Operations/ Marketing/ Administration/ any other unit) shall formulate the
Section 4-B (SIB) accordingly. Also, the approval of the competent authority
must be taken for the text of the Special Instructions to Bidders and Eligibility
Conditions.
3.7.3 The guidelines for preparing section-4-B (SIB) along with corresponding
cross-reference with Section-4 A (GIB) provision is available in this section. It
is also indicated therein that the provisions in the Special Instructions to
Bidders and Eligibility Conditions (SIB) shall supersede the corresponding
provisions in the General Instructions to Bidders (GIB) in case of conflict.
3.7.4 Section-4-B (SIB) shall essentially have suitable clauses on the following:
3.7.4.1 Eligible Bidders (refer GIB clause 2):
The eligibility conditions shall be mentioned in the Section-4-B clause 1.
Broad guidelines for preparing eligibility conditions are mentioned in
Chapter 2.
Page 18
3.7.4.2
3.7.4.3
3.7.5
3.7.5.1
3.7.5.2
3.7.5.3
3.7.5.4
3.7.5.5
3.7.5.6
Bid Security (refer GIB clause 12):

The value of Bid Security (EMD/ EMBG) should be specified in
Section-4-B. In case there is more than one package in the tender, each
having a separate Bid Security, then the Bid Security for each package
should be clearly mentioned.
Number of successful bidders/ quantity distribution (refer GIB clause 24):
The number of bidders on which order is intended to be placed should be
mentioned in Section-4-B (refer Clause 4).
In addition to above, Section-4 B may also have clauses on the following
items/ topics which may complement/ supersede the corresponding
clauses of Section-4 Part A (GIB). The list is not exhaustive and actual
clauses have to be framed on case-to-case basis.
Clarification of Bid Documents (refer GIB clause 5):
Depending on the time allowed for submission of tender, nature of the
goods, urgency of requirement etc., the cut-off time for receiving and
processing requests from the prospective bidders may be shorter or
longer than twenty one days. The principle behind providing such cut-off
date is to disallow the bidders in raising irrelevant queries up to the last
moment before tender opening thereby delaying the opening of tenders.
Documents Comprising the Bid (refer GIB clause 7):
If the goods required are highly sophisticated and costly, the purchaser
may need some more documents from the bidders along with their
tenders. In such a case, requirement of those special documents is also
to be incorporated in Section-4-B.
Bid Prices (refer GIB clause 9):
This is an important area and due care should be taken for formulating
this clause depending on the nature of the goods, requirement of
incidental service, terms of delivery etc.
The best terms of delivery, so far as the purchaser is concerned is CIP
destination, wherein the goods are received by the purchaser at the
desired place as incorporated in the tender enquiry document.
Documents Establishing Bidders Eligibility and Qualifications (refer GIB
Clause 10):
In order to establish the eligibility and fulfillment of the qualification
criteria, some documents in addition to those mentioned in GIB clause 10
might be required. Such documents should be specified in Section-4-B
(SIB). These may include experience certificates, authorization from the
technology partner, MOU, etc.
Sealing and Signing of Bid (refer GIB clause 14) and Opening of Bids by
Purchaser (refer GIB clause 19):
In case of two bid system, at the first stage, only the technical bids will be
opened and evaluated by the techno-commercial evaluation committee/
authority. Financial bids of only techno-commercially acceptable offers
Page 19
3.7.5.7
shall be opened at the second stage.

Additional factors to be considered for evaluation of tender (refer GIB
sub-clause 21.3):
Generally, for purchase of standard goods for normal use, no such
additional factor may be needed. However, for purchase of highly
sophisticated and costly equipment, where the operating cost,
maintenance cost, efficiency and productivity of the equipment have
significant impact on the overall cost structure and economy for operating
the equipment, suitable parameters may be incorporated in the tender
document for evaluation of the tenders on equitable basis by considering
the monetary impacts for such parameters. Such details should be
formulated by qualified and competent personnel and incorporated in the
document with the approval of the competent authority.
3.8
Section-5 Part A - General (Commercial) Conditions of Contract

(GCC)
This section provides the general rules, regulations and conditions which
will guide the resultant contract. This section is to be incorporated
unchanged in the tender enquiry document. However, here also, there
may be some purchase specific contractual conditions, which are to be
suitably incorporated in the tender enquiry documents. Such special
conditions are to be included in Section 5-B - Special (Commercial)
Conditions of Contract and Section 3-Part BTechnical Specifications as
elaborated in following paragraphs.
3.9
3.9.1
Section-5-B - Special (Commercial) Conditions of Contract (SCC)

The areas of the General (Commercial) Conditions of Contract (GCC), in
which specific data/ details are to be provided and/or which need
modification to take care of special situations for a particular purchase
case can easily be located by going through the GCC clauses. However,
while doing so, it should be ensured that such modifications remain within
the framework of the procurement policies of BSNL.
The User Section (i.e. the Unit that has raised the requisition e.g.
Planning/Operations/ Marketing/ Administration/ any other unit) shall have
to formulate the Section 5-Part B (SCC) accordingly. Also, the approval of
the competent authority must be taken while framing such details and
before incorporating the same in the Special (Commercial) Conditions of
Contract (SCC).
The guidelines for preparing Section-5-Part B (SCC) along with
corresponding cross-reference with Section-5 Part A (GCC) provision is
available in this section. As also indicated therein, the provisions in the
Special (Commercial) Conditions of Contract (SCC) will supersede the
corresponding provisions in the General (Commercial) Conditions of
Contract (GCC) in case of conflict.
3.9.2
3.9.3
Page 20
3.9.4 Section-5-B may have clauses on the following items/ topics which may
complement/ supersede the corresponding clauses of Section-5 Part A
(GCC).The list is not exhaustive and actual clauses have to be framed on
case-to-case basis.
3.9.4.1 Delivery and Documents (refer GCC clause 6):
The delivery period will be decided on case-to-case basis considering
TSEC, PQT, validation requirement as well as requirements of BSNL
in the competitive environment. Generally six months delivery time is
envisaged. The delivery period for procurement should be four
months for store items where TSEC & PQT are available, six months
where TSEC is available but PQT is required. The TSEC and PQT
should be completed in maximum period of two months. The delivery
period should be eight months in case validation of new technology
equipments is involved.
Early deliveries may be accepted as per requirement of BSNL on
case-to-case basis.
In turnkey projects where Installation and Commissioning is to be
carried out by the supplier, the time-lines for such activities should
also be defined.
3.9.4.2 Incidental Services (refer GCC clause 8):
Requirement of such services will depend on the nature of the goods,
cost thereof etc. Some of the services will be needed along with the
goods and some may be needed separately (like maintenance service).
All such aspects are to be kept in view while formulating the requirement
of the incidental services.
3.9.4.3 Warranty(refer GCC clause 10):
For turnkey projects or high value procurements, the Warranty terms
may have to be elaborated keeping in view the actual project
requirements e.g. for CDMA and GSM projects, the date of
commencement of the Warranty should be clearly specified in the
SCC.
Suitable Clause may be incorporated in the Special (Commercial)
Conditions of Contract, fixing reasonable timeframe to start warranty
of the equipment after it has been put to commercial use. This will be
treated as date of commissioning for the purpose of release of
payment and calculation of liquidated damages.
3.9.4.4 AMC conditions:
Section-4 Part A (GCC) does not mention about the Annual
Maintenance Contract (AMC) conditions. If there is need for AMC
after successful completion of the Warranty period, then, suitable
conditions for the same should be specified in Section-5 -C (General
conditions of AMC).
The AMC conditions should indicate the penalties, payment terms,
Page 21
date of commencement, obligations of the supplier, Bank Guaranties

to be furnished, etc. Such conditions should be decided on
case-to-case basis keeping in view the actual project requirements.
The AMC should be only on the cost of equipment supplied(excluding
duties and taxes CENVAT-able i.e. net cost to BSNL) and not on the
cost of installation & commissioning, etc.
A draft of the AMC terms and Conditions should be provided in the
Section-5 Part C of the tender enquiry document. Sample AMC
conditions are mentioned in Section-5-Part C of the Standard Tender
Enquiry Document in Chapter4 of this Manual.
3.9.4.5
Payment Terms (refer GCC clause 11):

The terms and mode of payment will depend on the milestones
defined here which may again depend upon nature of the goods,
terms of delivery, requirement of incidental services, etc.
The actual payment conditions for new products or procurements
having installation and AMC services may be decided on
case-to-case basis and incorporated in Section-2.
The documents needed for effecting the payments are also to be
specified accordingly.
3.9.4.6
Liquidated Damages (LD) (refer GCC clause 16):

The LD defined in Section-5 Part A (GCC) is only for the delay in supply
of goods. However, if the contract involves services such as Installation,
commissioning, etc., then the penalties applicable when there is delay in
executing such services should be mentioned in Section-5 Part B
(SCC).
3.9.4.7
Change in make/ model after opening of bids(refer GCC clause 23):

In some cases supplier / vendor asks for change in
a) model of main equipment which may be required due to :
(i) Change in Technology /Technological up gradation.
For allowing any change in model of the equipment /item the
vendor will be required to establish the suitability of the replacing
equipment in regard to the required specifications.
(ii) Obsolescence of the technology/ Phase-out of the item in
production line by the OEM to bidder.
For allowing any change in make/model of the equipment/item
due to obsolescence or phasing out of model by OEM, a
certificate from OEM in this regard must be submitted by the
bidder.
(These are some illustrative situations and are not exhaustive)
Page 22
b)
Make/ model of the third party equipment, which is not the main
tendered item. Shall be allowed provided that the vendor is able to
establish the suitability of the replacing equipment in regard to the
required specifications.
In such aforesaid situations, case shall be dealt as per following steps
A committee, of the level of CET, should be formed for assessing

the suitability of the alternate offered item in regard to specifications
and resultant financial gain, if any, to BSNL due to this change.
These cases should be decided by the tender approving authority

on case-to-case basis upon recommendations of the committee so
formed as above.
Note 1:- In case of aforesaid change in any make/model of the
equipment/item, lowest of the rates offered by proposing bidder or
any other bidder who quoted for the same make/model in the tender,
shall be applicable.
Note 2: - In any case the vendor shall be required to supply the item at a rate
not more than the quoted rate in the tender.
3.10
Section 9 Price Schedule

There are two price schedules, Part-A and PartB for indigenous and
imported items respectively, which are self explanatory.
3.11 Pre-bid clarifications and amendments in the tender document

3.11.1 After issue of tender document, a number of queries are sometimes received
and pre-bid clarifications are issued by BSNL. Sometimes, the same clause
gets clarified in contradictory manner against different clarifications.
Sometimes the original clause gets amended but the language of new
clause is not clear as the clarification is replied simply as Yes please or
agreed or accepted. During evaluation and subsequently while preparing
special conditions for issue of APO/ PO, lot of difficulty is faced. In this regard,
the clarifications issued should be unambiguous and if any clause is getting
modified, then the amended clause should be stated in proper language.
3.11.2 When a large number of clarifications have been issued resulting in number
of changes in the tender clauses, then after issue of the last pre-bid
clarification, BSNL should issue the updated tender document incorporating
all the relevant clarifications and amended clauses just below the original
clause. If printing of the amended document may not be possible due to
time constraint, then it should be uploaded on BSNL Website/ electronic
tender portal. In such cases, the bidders should be asked to submit the
clause-by-clause compliance of this amended tender document only and for
evaluation the CET Members should rely only on the amended document.
Page 23
CHAPTER 4
4
STANDARD TENDER ENQUIRY DOCUMENT
SECTION-1
nd
2 Floor, Bharat Sanchar Bhawan, HC Mathur Lane, Janpath, New Delhi- 110001
...
From:
To,
AGM (MMY)
.................................................
2nd Floor, MMT Section,
.................................................
Bharat Sanchar Bhawan, HCM Lane,
.................................................
Janpath, New Delhi 110001.
.................................................
No. CA/MMT/Item/11-yy/BU name/2011-12/
Dated:
Sub: - Tender documents for

Tender No.: CA/BU name/Item/T-xxx/2011-12 issued on
Please find enclosed the tender document in respect of above mentioned
tender which contains the following.
Section No.
Item
1.Part A
Detailed NIT
1. Part B
Newspaper NIT
2.
Tender Information
3 Part A
Scope of work
3 Part B
Technical Specifications/ Requirements
3 Part C
Schedule of Requirements(SOR)
4 Part A
General Instructions to Bidders(GIB)
4 Part B
Special Instructions to Bidders(SIB)
4 Part C
E-tendering Instructions to Bidders (If applicable)
5 Part A
General (Commercial) Conditions of Contract (GCC)
5 Part B
Special (Commercial) Conditions of Contract (SCC)
5 Part C
General Conditions of AMC ( If applicable)
Undertaking & declaration
Proforma (s)
Page No.
Page 24
Bid Form & Price Schedule
If interested, kindly submit your bid offers online (in case of tenders invited through
e-tendering portal) or physically (in case of tenders invited through manual
tendering) on or before date & time specified in Clause 6 of detailed NIT.
AGM (MMY)
Tel.: 011-2371 7844, FAX: 2371 0198
E-Mail: -----------@bsnl.co.in
-------------------------------------------------------------------------------------------------------------------------------------Regd. Off.: BSNL, Bharat Sanchar Bhawan, Janpath New Delhi -110 001. Web: www.bsnl.co.in
Page 25
SECTION 1 Part A
Detailed NOTICE INVITING E-TENDER (DNIT)
MMT Section, 2nd floor, Bharat Sanchar Bhawan,
Janpath, New Delhi - 110 001
..
Sealed Tenders (Digitally in case of e-tendering & Wax/ Tape sealed in case of
manual tendering) are invited by ...
(Write Designation of Officer approving inviting of tender) e.g. CMD, BSNL for
supply of following Items or undertaking following works (as applicable).
S. No.
Name of the Item/ Work
Estimated
Quantity (Nos.)
Bid Security/Earnest
Money
Deposit Amount
for the tender
Note 1: The quantity /no. / Sites stated above are estimated and BSNL reserves the
right to vary the quantity to the extent of -25 % to +25 % of specified quantity
at the time of award of the contract i.e. APO without any change in unit price
or other terms & conditions.
Note 2: 20 % of the Estimated Quantity/requirement in this tender Enquiry is
earmarked for procurement from the eligible Micro & Small Enterprises
(MSEs). However, in case eligible Micro & Small Enterprises (MSEs)
bidder(s) are not available then this quantity would be de-reserved &
procured from participating bidders.
(Note-2 shall be deleted in case the tender does not have provision for reservations
for MSE units)
1.1
There is a separate bid form for each section/ Zone/ Package in the tender
documents, which should be filled if the bidder wishes to participate in that
section/ zone/ Package (if applicable). The evaluation of the tender as well
as allotment of the work will be done section/ zone/ Package wise.
2.
Purchase of Tender Document: Tender document can be obtained by

downloading it from the website ... (write address of
concerned website) e.g. www.bsnl.co.in following Link for E-tenders by
BSNL in case of tenders invited through e-tendering process.
Page 26
Tenders invited through manual bidding process shall be available

at ... (write address of concerned website) e.g. www.bsnl.co.in.
2.1
The bidders downloading the tender document are required to submit the
tender fee amount through DD/ Bankers cheque along with their tender bid
failing which the tender bid shall be left archived unopened/ rejected.
The DD/ bankers cheque shall be drawn from any Nationalized/ Scheduled
Bank in favour of .. (state designation of concerned
Accounts Officer) e.g. AO(Cash), BSNL, C.O. N. Delhi and payable
at ... (state the name of the concerned payable City/
Station) e.g. New Delhi.
2.2
The tender documents shall be issued free of cost to MSE bidders on

production of requisite proof in respect of valid certification from MSME for the
tendered item.
3.0 Availability of Tender Document: The tender document shall be available for
downloading from ./ ../ 20. (write date in dd/mm/yyyy) onwards up
to ./ ../ 20. (write date in dd/mm/yyyy) from 11-00 Hrs to 17-00 Hrs on
all working days of this office.
3.1 In case of tenders invited through e-tendering process, physical copy of the
tender document would not be available for sale.
3.2
Tenders invited through manual bidding process shall be available for sale
and can be had from ... (state designation of the
officer with complete postal address) e.g. Deputy Manger (MMT), 2nd Floor,
Bharat Sanchar Bhawan, Janpath, New Delhi-110001 against payment of
Tender fee of Rs../- which will be payable in the form and in the name of
person stated in clause 2.1 above.
Note 3: The Tender document shall not be available for download on its submission
/ closing date.
4.
Eligibility Criteria: - The bidder should have

a)
<ELIGIBILITY
CONDITIONS
TO
BE
MENTIONED
HERE> .
b)
Valid PAN No.
c)
Valid Sales/ Service Tax Registration Certificate No or exemption
certificate No.
4.1 The bidders shall submit necessary documentary proof showing that they
meet the eligibility criteria along with their tender bid. All documents submitted
will also be self attested by the bidder.
5.
Bid Security/EMD:
Page 27
5.1 The bidder shall furnish the bid EMD in one of the following ways:(a)
Demand Draft/ Bankers cheque drawn in favour of .

(State Designation of concerned Accounts Officer) e.g. AO (Cash),
BSNL, C.O. N. Delhi and payable at . (State the name of
the concerned payable City) e.g. New Delhi either separately for
each package or total for all no. of packages participated.
b)
Bank Guarantee from a scheduled bank drawn in favour

of. (State Designation of concerned officer ) e.g. DGM
(MMT), Bharat Sanchar Nigam Limited, Corporate Office, New Delhi
which should be valid for days (i.e. one month above the offer
validity period subject to maximum of 210 days) from the tender
opening date, either separately for each package or total for all no. of
packages participated.
5.2 The MSE units shall be exempted from submission of Bid Security deposit on
production of requisite proof in respect of valid certification from MSME for the
tendered item.
Date & Time of Submission of Tender bids: on or before .
&
. (state time & date of receipt of tender) e.g. hh: mm of
dd/mm/20 yy.
Note 4: In case the date of submission (opening) of bid is declared to be a holiday,
the date of submission (opening) of bid will get shifted automatically to
next working day at the same scheduled time. Any change in bid opening
date due to any other unavoidable reason will be intimated to all the
bidders separately.
6.
7.
Opening of Tender Bids: After 00:30 Hours of this tender closing time & on
same date.
8.
8.1
Place of opening of Tender bids:

In case of tenders invited through e-tendering process, the tenders shall be
opened through Public Online Tender Opening Event (POTOE). BSNLs
Tender Opening Officers as well as authorized representatives of bidders
can attend the Public Online Tender Opening Event (TOE) from the comfort
of their offices. Kindly refer clause 8 of Section-4 Part C of Tender document
for further instructions.
In addition & in case of tenders invited through manual bidding process,
authorized representatives of bidders (i.e. vendor organization) can attend
the TOE at the (state address of the tender opening place)
e.g. Meeting Room, 2nd Floor, Bharat Sanchar Bhawan, Janpath, New
Delhi, where BSNLs Tender
Opening Officers would be conducting Public Online or manual Tender
8.2
Page 28
Opening Event (TOE).

9.
Tender bids received after due time & date will not be accepted.
10.
Incomplete, ambiguous, Conditional, unsealed tender bids are liable to be

rejected.
11.
(Write the Designation of Officer

approving inviting of tender) e.g. CMD, BSNL reserves the right to accept
or reject any or all tender bids without assigning any reason. He is not bound
to accept the lowest tender.
12.
The bidder shall furnish a declaration in his tender bid that no addition /
deletion / corrections have been made in the downloaded tender document
being submitted and it is identical to the tender document appearing on the
website.
12.1
In case of any correction/ addition/ alteration/ omission in the tender

document, the tender bid shall be treated as non responsive and shall be
rejected summarily.
Note 5: All documents submitted in the bid offer should be preferably in English. In
case the certificate viz. experience, registration etc. is issued in any other
language other than English, the bidder shall attach an English translation of
the same duly attested by the bidder & the translator to be true copy in
addition to the relevant certificate.
Note 6: All computer generated documents should be duly signed/ attested by the
bidder/ vendor organization.
Page 29
SECTION 1 (Part B)
NEWS PAPER N.I.T. (NNIT)

O/o Sr. GM (MM), Bharat Sanchar Bhawan,
Janpath, New Delhi-110001
NOTICE INVITING TENDER

Tender No. MM/./T./2012-13 dated ..
Sealed tenders are invited by. (Write Designation of
Officer approving inviting of tender) e.g. CMD, BSNL from the
prospective bidders for the following work:
Name of the work
Quantity (With Unit)
Estimated cost in Rs.
Last date of receipt of tender is .............. up to Hrs.

For further detailed information, kindly visit our website www.bsnl.co.in
and follow Link for E-Tenders by BSNL.
DGM (MM)
Tel. No. ,FAX No.
Page 30
Note :- (Not to be published)

1.
Complete Postal Address of the office inviting tender should be there in the
NNIT.
2.
Phrases like on behalf of BSNL etc. should be avoided.
3.
The font size of the NNIT, to be published, should be 8 points.
4.
The width of the NNIT in the newspaper should be Two Column.
5.
Telephone and Fax no. with STD code must be there in the NNIT.
6.
No advertisement of Excel & Cell one service need be included in the NNIT
which unnecessarily inflates the publishing cost.
7.
No. of insertions in the newspaper will depend on value of tender tabulated

below:
S. No.
Value of tender
No. of insertion
1.
Less than Rs.1 Crore
1 Regional/ Hindi
2.
Rs.1 Crore and above
1 Regional/ Hindi & 1 English
Page 31
SECTION- 2
Tender Information
Note 1:-The Tender Information below is for reference only. Precise Tender
Information need be framed for each tender as per type of tender.
1.
Type of tender- :
a)
No. of Bid Submission Stages for tender: Single /Two Stage.
(Please See Note-2).
b)
No. of Envelopes for submission of Bids: Single/ Two Nos.
(Opening stages) (Please See Note-3).
c)
E-reverse auction (In case of tenders
: Yes/ No
invited through e-tendering only)
Note 2: Two stage submission of bids is desirable only in cases where there is
doubt on the scope of Work/ Specifications and requirements. In such tender,
first stage will be used to invite bids to have details/ clarifications on scope of
Work/ Specifications and requirements to firm up the same following which
techno-commercial bid along with financial bid shall be invited in 2nd stage.
Note 3:- In case of 1(b) above, the bidder shall submit Techno-commercial &
Financial bid simultaneously
Note 4:- The bids will be evaluated techno-commercially first and thereafter
financial bids of techno-commercially compliant bidders only shall be
opened.
2.
Bid Validity Period /

Validity of bid Offer
3.
In case of tenders invited under two envelopes system, the first envelope will
be named as techno-commercial& will contain documents of bidders
satisfying the eligibility / Technical & commercial conditions and 2nd envelope
will be named as financial envelope containing financial quote. These
envelopes shall contain one set of the following documents :a)
:.days (Specify time in days) from the

tender opening date.
Techno-commercial envelope shall contain :i)

EMD
ii)
Cost of the tender documents i.e. tender fee.
iii)
Certificate(s) showing fulfillment of the eligibility criteria(s)
stated in Clause 4 of the DNIT
iv)
Power of Attorney & authorization for executing the power of
Attorney in accordance with clause 14.4 of Section 4 Part A
v)
Integrity Pact (if applicable)
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vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
Clause by clause compliance as per clause 11.2 of Section-4A

Bidders Profile & Questionnaire duly filled & signed.
Non-Relation Certificate duly filled & signed.
Undertaking & declaration duly filled & signed
Documents stated in clause 10 of Section-4 Part A.
Tender documents duly signed at the end of each section for
having read it & accepted it (only in case of Manual bidding
Process).
Tender/ Bid form- Section 9 Part A
Electronic Form- Technical (in case of tenders invited through
e-tendering process)
Note 5: Deleted
b) Financial envelope shall contain:
i) Electronic Form- financial along with Price Schedule (Section 9
PartB (I & II) with all relevant bid annexure (in case of tenders
invited through e-tendering process).
ii) Bid form- Price Schedule (Section 9 Part B (I &II ) duly filled &
signed (in case of tenders invited through manual bidding
process).
Note 6:- In case of e-tendering, the following documents are required to be
submitted
offline
(i.e.
offline
submissions)
to (state the address of the
concerned officer) e.g. DM (MMT), BSNL, C.O. 2nd Floor, Bharat Sanchar
Bhawan, Janpath, New Delhi-110001 on or before the date & time of
submission of bids in a sealed envelope.
The envelope shall bear the tender number, name of work and the phrase:
Do Not Open Before (due date & time of opening of tender).
i)
EMD Bid security (original copy)
ii)
DD/ Bankers cheque of Tender fee
iii)
Power of Attorney in accordance with clause 14.4 of section 4 Part A
and authorization for executing the power of Attorney.
iv)
Integrity Pact (if applicable)
4.
5.
6.
In case of tenders invited under Single Envelope system, the envelope will
contain both techno-commercial & financial bid i.e. documents 3 (a) (i) to (xi)
& 3 (b) (i) to (ii).
Payment terms
Delivery Schedule
Note 7:- First two months are for lead period and evenly distributed supplies are
expected in remaining four months.
7. Consignee
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SECTION- 3 Part A
SCOPE OF WORK
A.
General :
B.
Scope of Work:
Page 34
SECTION- 3 Part B
TECHNICAL SPECIFICATIONS/ Requirements

A.
General :
B.
Technical specifications: The equipment shall conform to the Technical

specifications as mentioned below :
Note 1: Clauses for describing the technical requirements, model technical

Specifications may be added as per requirement.
Note 2: After the issue of DNIT, Specifications should not be changed.
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SECTION-3 Part C
SCHEDULE OF REQUIREMENTS (SOR)
S.NO.
GOODS/ SERVICES
QUANTITY
Unit
of
Measurement
(Km/kg/No.etc.)
Note: Bidder shall furnish the detailed Bill of Material (BOM) for each SOR item
mentioned above. The detailed Bill of Material should clearly mention all the
components including quantities, constituting the SOR item. The priced Bill
of Material should be submitted in the envelope containing the price bid and
unpriced Bill of Material should be submitted in the envelope containing the
techno-commercial part. There should not be any difference in the items and
quantities in the priced and the unpriced BOMs.
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SECTION-4 Part A
GENERAL INSTRUCTIONS TO BIDDERS (GIB)
1.0
DEFINITIONS
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
2.0
2.1
"The Purchaser" means the Bharat Sanchar Nigam Ltd. (BSNL),

New Delhi
"The Bidder" means the individual or firm who participates in this
tender and submits its bid.
"The Supplier" or The Vendor means the individual or firm
supplying the goods under the contract.
"The Goods" means all the equipment, machinery, and/or other
materials which the Supplier is required to supply to the Purchaser
under the contract.
"The Advance Purchase Order" or Letter of Intent means the
intention of Purchaser to place the Purchase Order on the bidder.
"The Purchase Order" means the order placed by the Purchaser on
the Supplier signed by the Purchaser including all attachments and
appendices thereto and all documents incorporated by reference
therein. The purchase order shall be deemed as "Contract"
appearing in the document.
"The Contract Price" means the price payable to the Supplier under
the purchase order for the full and proper performance of its
contractual obligations.
"Validation" is a process of testing the equipment as per the Generic
Requirements in the specifications for use in BSNL network.
Validation is carried out in simulated field environment and includes
stability, reliability and environmental tests.
"Telecom Service Provider" means any Telecom operator in India,
who is licensed by the Department of Telecommunications (DOT),
Government of India to provide telecom services to the general public
or to the other DOT licensed Telecom operators. "Telecom Service
Provider" also refers to any Telecom operator in other countries
providing telecom services to general public of that country or to other
telecom operators of the same country.
Successful Bidder(s) means the bidder(s) to whom work in this
tender is awarded.
ELIGIBILITY CONDITIONS:
Kindly refer to clause 4 of Section 1 i.e. Detailed NIT.
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3.0
COST OF BIDDING
3.1
The bidder shall bear all costs associated with the preparation and
submission of the bid. The Purchaser will, in no case, be responsible or liable
for these costs, regardless of the conduct or outcome of the bidding process.
4.0
DOCUMENTS REQUIRED
4.1
The goods required to be supplied; bidding procedures and contract terms

and conditions are prescribed in the Bid Documents. The contents of the Bid
documents are specified in the covering letter.
The Bidder is expected to examine all instructions, forms, terms and
specifications in the Bid Documents and clarifications/ amendments/
addenda, if any. Failure to furnish all information required as per the Bid
Documents or submission of the bids not substantially responsive to the Bid
Documents in every respect will be at the bidder's risk and may result in
rejection of the bid.
4.2
5.0
5.1.
5.2
6.0
6.1
6.2
6.3
CLARIFICATION OF BID DOCUMENTS

A prospective bidder, requiring any clarification on the Bid Documents shall
notify the Purchaser in writing by FAX or by Email of the Purchaser as
indicated in the invitation of Bid. The Purchaser shall respond in writing to
any request for the clarification of the Bid Documents, which it receives 21
days prior to the date of opening of the Tenders. Copies of the query
(without identifying the source) and clarifications by the Purchaser shall be
sent to all the prospective bidders who have received the bid documents.
Any clarification issued by BSNL in response to query raised by prospective
bidders shall form an integral part of bid documents and shall amount to an
amendment of the relevant clauses of the bid documents.
AMENDMENT OF BID DOCUMENTS
The Purchaser may, for any reason, whether at its own initiative or in
response to a clarification requested by a prospective bidder, may modify bid
documents by amendments prior to the date of submission of Bids with due
notification to prospective bidders.
The amendments shall be notified in writing by FAX or Email or by
Addendum through e-tendering portal ( for tenders invited through
e-tendering process)to all prospective bidders on the address intimated at
the time of purchase of the bid document from the purchaser and these
amendments will be binding on them.
In order to afford prospective bidders a reasonable time to take the
amendment into account in preparing their bids, the purchaser may, at its
discretion, extend the deadline for the submission of bids suitably.
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7.0
DOCUMENTS COMPRISING THE BID

The bid prepared by the bidder shall ensure availability of the following
components:
(a) Documentary evidence establishing that the bidder is eligible to bid and
is qualified to perform the contract if its bid is accepted in accordance
with the clause 2 & 10.
(b) Bid Security furnished in accordance with clause 12.
(c) A Clause by Clause compliance as per clause 11.2 (c)
(d) A Bid form and price schedule completed in accordance with clause 8 & 9.
8.0
BID FORM
8.1
The bidder shall complete the bid form and appropriate Price Schedule
furnished in the Bid Documents, indicating the goods to be supplied, brief
description of the goods, quantity and prices as per section- 9.
9.0
BID PRICES
9.1
The bidder shall give the total composite price inclusive of all Levies & Taxes
i.e. Sales Tax & Excise, packing, forwarding, freight and insurance etc. but
excluding Octroi/ Entry Tax which will be paid extra at actual, wherever
applicable. The basic unit price and all other components of the price need to
be individually indicated up to two decimal points only against the goods it
proposes to supply under the contract as per the price schedule given in
Section 9 Part B(I&II). Prices of incidental services should also be quoted.
The offer shall be firm in Indian Rupees. No Foreign exchange will be made
available by the purchaser.
Prices indicated in the Price Schedule shall be entered in the following
manner:
(a) The Basic Unit price (Ex-Factory Price) of the goods, Excise duty,
Custom duty, Sales Tax, Freight, Forwarding, Packing, Insurance and
any other Levies/ Charges already paid or payable by the supplier shall
be quoted separately item wise.
(b) The supplier shall quote as per price schedule given in Section 9 part B
for all the items given in schedule of requirement at Section 3 part C.
A bid submitted with an adjustable price quotation will be treated as
non-responsive and rejected.
The prices quoted by the bidder shall be in sufficient detail to enable the
Purchaser to arrive at the price of equipment/ system offered.
"DISCOUNT if any, offered by the bidders shall not be considered unless
specifically indicated in the price schedule. Bidders desiring to offer discount
shall therefore modify their offers suitably while quoting and shall quote
clearly net price taking all such factors like Discount, free supply, etc. into
account".
9.2
9.3
9.4
9.5
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9.6
The price approved by BSNL for procurement will be inclusive of levies and
taxes, packing, forwarding, freight and insurance as mentioned in clause 9.1
subject to other terms and condition as stipulated in clause 22.2 of Section 4
Part A. and clause 11 of Sec-5 Part A of Bid-document. Unloading charges
at the consignee end shall be borne by the supplier and no separate charges
shall be paid for transportation to individual sites for installation.
9.7
The freight by sea for transportation of equipment/Stores from the nearest

port in the main land to Andaman & Nicobar Islands will be reimbursed to the
supplier at the concessional rates levied by Ministry of Water and Surface
Transport on production of proof.
10.0
DOCUMENTS ESTABLISHINGBIDDER'S ELIGIBILITY AND

QUALIFICATION
10.1. The bidder shall furnish, as part of the bid documents establishing the
bidder's eligibility, the following documents or whichever is required as per
terms and conditions of Bid Documents.
a) Valid MSE Certificate, if applicable. In case the ownership of such MSE
Entrepreneurs happens to be from SC/ST category, proof in this regard
also need to be submitted.
b) Type Approval Certificate given by Telecom Engineering Centre (TEC)/
TSEC issued by the Quality Assurance Circle of BSNL or proof of having
applied for TSEC (Copy of Form QF 103 be attached).
c) Inspection Certificate issued by BSNL (QA) for execution of educational/
Commercial Order.
d) Additional documents to establish the eligibility and qualification of
bidder as specified in Section-I and Section-4 Part B.
e) Power of Attorney as per clause 14.3 (a) and (d) and authorization for
executing the power of Attorney as per clause 14.3 (b) or (c).
f) Documentary proof of applicable rate of ED/ CD/ Sales Tax/ VAT
/Service Tax.
g) Undertaking duly signed by front bidder and its technology/ consortium
partner stating that both of them shall be liable for due performance of
the contract jointly and severally.
h) Certificates from all Directors of the bidder stating that none of their near
relatives are working in BSNL in accordance with clause 34.
i) Certificate of incorporation.
j) Article or Memorandum of Association or partnership deed or
proprietorship deed as the case may be.
k) List of all Directors including their name(s), Director Identification
Number(s) (DIN) and address (es) along with contact telephone
numbers of office and residence.
l) Registration certificate from State Director of Industries or from
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Secretariat for Industrial Assistance (SIA), Ministry of Industries,

Government of India.
m) Approval from Reserve Bank of India/ SIA in case of foreign
collaboration.
Note 1: Documents at S. No 10.1(g), (k), (l), (m) are applicable in case of tenders
with estimated cost more than Rs 1 Crore.
10 .2 Documentary evidence for financial and technical capability
a) The bidder shall furnish audited Annual Report and /or a certificate from
its bankers to assess its solvency/financial capability.
b) The bidder shall furnish documentary evidence about technical and
production capability necessary to perform the contract.
10.3 In order to enable the Purchaser to assess the proven-ness of the system
offered, the bidder
shall provide documentary evidence regarding the
system being offered by him.
10.4 The offered product has to be type approved. For this purpose, the supplier
shall submit a sample type for evaluation. The sample would be evaluated
for its ability to meet the technical specifications, manufacturability, reliability,
testability, ease of installation, maintainability etc. Necessary documents to
substantiate these attributes will have to be submitted at the time of
application for approval by the supplier for obtaining type approval. Or In
case goods offered have already been type approved/ validated by the
Purchaser, documentary evidence to this effect shall be submitted by the
bidder.
10. 5 A signed undertaking from Authorized Signatory of the bidder that shall certify
that all components/ parts/ assembly/ software used in the Desktops and
Servers like Hard disk, Monitors, Memory etc. shall be original, new
components/ parts/ assembly/ software and that no refurbished/ duplicate/
second hand components/ parts/ assembly/ software are being used or shall
be used.
10.6. For supply of any software i.e. operating system or any applications software
the bidder should submit a Certificate Of Authenticity (COA), signed by
Authorized Signatory stating that all Software supplied are authentic and
legal copy is/ are being supplied.
10.7 Documentary evidence/ Declaration to the effect that the type of software to
be utilized in the system/ equipment i.e. Packaged/ Canned OR Customized
shall be furnished by the bidder. In case of Packaged/ Canned, the portion of
value which represents consideration paid or payable for transfer of right to
use such goods subject to provisions laid down in Central Excise/Custom
Notifications.
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11.0
11.1
11.2
11.3
12.0
12.1
12.2
DOCUMENTS ESTABLISHING GOODS CONFORMITY TO BID

DOCUMENTS
Pursuant to clause 7, the bidder shall furnish, as part of its bid, documents
establishing the conformity of its bid to the Bid Documents of all goods and
services which he proposes to supply under the contract.
The documentary evidences of the "goods and services" conformity to the
Bid Documents may be, in the form of literature, drawings, data etc. and the
bidder shall furnish:
(a)
a detailed description of goods with essential technical and
performance characteristics;
(b)
a list, giving full particulars including available sources and current
prices of all spare parts, special tools, etc., necessary for the proper
and continuous functioning of the goods for a period of three years
following commencement of use of the goods by the purchaser, and
(c)
a clause-by-clause compliance on the purchaser's Technical
Specifications and Commercial Conditions demonstrating substantial
responsiveness to the Technical Specifications and Commercial
Conditions. In case of deviations, a statement of the deviations and
exception to the provision of the Technical Specifications and
Commercial Conditions shall be given by the bidder. A bid without
clause-by-clause compliance of the Scope of Work, Technical
Specifications, SOR (Section-3 Part A, B & C),
General
(Commercial) Conditions & Special (Commercial) Conditions,
General Conditions of AMC (Section- 5 Part A, B & C) shall not be
considered.
For the purpose of compliance to be furnished pursuant to the clause11.2(c)
above, the bidder shall note that the standards for the workmanship, material
and equipment and reference to the brand names or catalogue number,
designated by the Purchaser in its Technical specifications are intended to
be descriptive only and not restrictive.
BID SECURITY / EMD
The bidder shall furnish, as part of its bid, a bid security as mentioned in
Section-1(DNIT).
The MSE bidders are exempted from payment of bid security:
a) A proof regarding valid registration with body specified by Ministry of
Micro, Small & Medium Enterprise for the tendered items will have to be
attached alongwith the bid.
b) The enlistment certificate issued by MSME should be valid on the date of
opening of tender.
c) MSE unit is required to submit its monthly delivery schedule.
d) If a vender registered with body specified by Ministry of Micro, Small &
Medium Enterprise claiming concessional benefits is awarded work by
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12.3
12.4.
12.5
12.6
12.7
BSNL and subsequently fails to obey any of the contractual obligations,

he will be debarred from any further work/ contract by BSNL for one year
from the date of issue of such order.
The bid security is required to protect the purchaser against the risk of
bidder's conduct, which would warrant the forfeiture of bid security pursuant
to Para 12.7.
A bid not secured in accordance with Para 12.1 & 12.2 shall be rejected by
the Purchaser being non-responsive at the bid opening stage and archived
unopened on e-tender portal for e-tenders and returned to the bidder
unopened(for manual bidding process)
The bid security of the unsuccessful bidder will be discharged/ returned as
promptly as possible and within 30 days of finalization of the tender or expiry
of the period of the bid validity period prescribed by the purchaser pursuant
to clause 13.
The successful bidder's bid security will be discharged upon the bidder's
acceptance of the advance purchase order satisfactorily in accordance with
clause 27 and furnishing the performance security, except in case of L-1
bidder, whose EMBG/EMD shall be released only after the finalization of
ordering of complete tendered quantity in pursuance to clause no. 24.4 &
27.3 of this section.
The bid security may be forfeited:
a) If the bidder withdraws or amends its bid or impairs or derogates from
the bid in any respect during the period of bid validity specified by the
bidder in the bid form or extended subsequently; or
b) If the bidder does not accept the APO/ AWO and/ or does not submit
PBG & sign the contract/ agreement in accordance with clause 28.
Note: - The bidder shall mean individual company/ firm or the front bidder and its
technology/ consortium partner, as applicable.
13.0 PERIOD OF VALIDITY OF BIDS
13 .1 Bid shall remain valid for period specified in clause 2 of Tender Information.
A bid valid for a shorter period shall be rejected by the purchaser being
non-responsive.
13.2 In exceptional circumstances, the purchaser may request the consent of the
bidder for an extension to the period of bid validity. The request and the
response thereto shall be made in writing. The bid security provided under
clause 12 shall also be suitably extended. The bidder may refuse the request
without forfeiting its bid security. A bidder accepting the request and granting
extension will not be permitted to modify its bid.
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14.0 FORMAT AND SIGNING OF BID

14.1. The bidder shall submit his bid, online (in case of e-tendering) & through
sealed envelopes physically (in case of tenders with manual bidding
process), complying all eligibility conditions, other terms and conditions of
tender document to be read along with the clarifications and amendments
issued in this respect. All the documents must be authenticated, using Digital
Signature (in case of e-tendering) & by hand signatures (for manual bidding
process), by the authorized person. The letter of authorization shall be
indicated by written power-of-attorney accompanying the bid.
Note:-The Purchaser may ask the bidder(s) to supply, besides original bid,
additional copy of bids as required by him.
14.2. The bid shall contain no interlineations, erasures or overwriting except as
necessary to correct errors made by the bidder in which case such
corrections shall be signed by the person or persons signing the bid. All
pages of the original bid, except for un-amended printed literatures, shall be
digitally signed by the person or persons signing the bid.
14.3 Power of Attorney
(a) The power of Attorney should be submitted and executed on the
non-judicial stamp paper of appropriate value as prevailing in the
concerned states(s) and the same be attested by a Notary public or
registered before Sub-registrar of the state(s) concerned.
(b) The power of Attorney be executed by a person who has been
authorized by the Board of Directors of the bidder in this regard, on
behalf of the Company/ institution/ Body corporate.
(c) In case of the bidder being a firm, the said Power of Attorney should be
executed by all the partner(s) in favour of the said Attorney.
(d) Attestation of the specimen signatures of authorized signatory by the
Companys/ firms bankers shall be furnished. Name, designation,
Phone number, mobile number, email address and postal address of
the authorized signatory shall be provided.
15.0 SEALING AND MARKING OF BIDS
15.1 The bid should be submitted as per Clause 3 of tender information.
15.1.1 The bids may be called under
a) Single stage bidding & Single envelope system OR
b) Single Stage Bidding & Two Envelope System
The details of sealing & marking of bids in each case is given below:
15.1.2 In Single stage bidding & single envelope system, the bidder shall submit
all the documents specified for Techno-commercial bid & Financial bid in a
single envelope. The cover shall contain the Original Copy of the bids
subject to clause 14.2. The envelope should be sealed by the personal seal
of the bidder.
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15.1.3 In Single stage bidding & two envelopes system, the bidder shall submit his
bid in two envelopes;
The First envelope will be named as Techno-commercial bid. This
envelope will contain documents of bidders satisfying the eligibility /
Technical & commercial conditions as per clause 2 & 10 with Bid Security
as per Clause 12. Second envelope will be named as Financial bid
containing Price Schedules as per Section 9 Part B(I&II) .
The cover of first envelope shall contain the Original Copy of the
Techno-commercial bid, subject to clause 14.2, duly marked '
TECHNO-COMMERCIAL BID '. The cover of second envelope shall
contain the Original Copy of the financial bid, subject to clause 14.2, duly
marked ' FINANCIAL BID '.
Both the envelopes should be sealed separately and further kept in a single
main envelope under the personal seal of the bidder.
15.2
a) The envelopes shall be addressed to the purchaser inviting the tender.

i) In case of tenders invited by MMT section of BSNL CO, the Purchaser
Address shall be:
DGM (MMT),
Bharat Sanchar Nigam Limited (Corporate Office),
2nd Floor, Bharat Sanchar Bhawan, Janpath, New Delhi-110001.
ii) In case of tenders invited from other section of BSNL CO./ Circles/ SSA of
BSNL, the Purchaser Address shall be specified by the purchaser inviting
the tender of concerned Circle/ SSA.
b) The envelope shall bear the name of the tender, the tender number and the
words 'DO NOT OPEN BEFORE' (due date & time).
c) The inner and outer envelopes shall indicate the name and complete postal
address of the bidder to enable the purchaser to return the bid unopened in
case it is declared to be received 'late'.
d) Tender should be deposited in the tender box provided by tendering authority
or sent by registered post or delivered in person on above mentioned
address (address is given in Clause 15.2 (a) above). The responsibility for
ensuring that the tenders are delivered in time would vest with the bidder.
e) Bids delivered in person on the day of tender opening shall be delivered upto
specified time & date as stated in NIT to Section Officer (MMT) [in case of
tenders invited by MMT section of BSNL C.O.] / concerned officer to be
specified by tendering authority [In case of tenders invited from other units of
BSNL CO./ Circles/ SSA of BSNL] at the venue (address is given in clause
15.2 (a) above). The purchaser shall not be responsible if the bids are
delivered elsewhere.
f) Venue of Tender Opening:
(i)
In case of Tenders invited by MMT section of BSNL, C.O., tenders
will be opened in Meeting Room, 2nd Floor, Bharat Sanchar Bhawan,
Janpath, New Delhi-110001 at specified time & date as stated in NIT.
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(ii)
In case of tenders invited from other units of BSNL CO./ Circles / SSA
of BSNL, the details of Venue shall be specified by the purchaser
inviting the tender of concerned Circle/ SSA .
If due to administrative reasons, the venue of Bid opening is changed,
it will be displayed prominently on Meeting Room, 2nd Floor, Bharat
Sanchar Bhawan and notice board on 2nd Floor, Bharat Sanchar
Bhawan)[ in case of tenders invited by MMT section of BSNL C.O.] &
at a place notified by other section of BSNL CO./ Circle/SSA[In case
of tenders invited from other sections of BSNL CO./ Circles/ SSA of
BSNL].
15.3 If both the envelopes are not sealed and marked as required at para 15.1
and 15.2, the bid shall be rejected.
16. 0 SUBMISSION OF BIDS
16.1. Bids must be submitted by the bidders on or before the specified date & time
indicated in Clause 6 of Section-I i.e. DNIT.
16.2 The Purchaser may, at its discretion, extend this deadline for the submission
of bids by amending the Bid Documents in accordance with clause 6 in
which case all rights and obligations of the purchaser and bidders previously
subject to the deadline will thereafter be subjected to the extended deadline.
16.3 The bidder shall submit its bid offer against a set of bid documents
purchased by him for all or some of the systems/ equipment as per
requirement of the Bid Documents. He may include alternate offer, if
permissible as per the bid. However, not more than one independent and
complete offer shall be permitted from the bidder.
17.0
17.1
LATE BIDS
No bid shall be accepted either online by E-Tender Portal or physically in
case of manual bidding process after the specified deadline for submission
of bids prescribed by the purchaser.
18
MODIFICATION AND WITHDRAWAL OF BIDS
18 .1 The bidder may modify, revise or withdraw his bid after submission prior to
deadline prescribed for submission of bid.
18.2 The bidders modification, revision or withdrawal shall have to be online and
digitally authenticated (in case of e-tendering) & physically (in case of
manual bidding process) as per clause 15.
18.3 Subject to clause 20, no bid shall be modified subsequent to the deadline for
submission of bids.
19.0
19.1
OPENING OF BIDS BY PURCHASER

The purchaser shall open bids online (in case of e-Tenders) or physically (in
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19.2
19.3
case of manual bidding process) in the presence of the authorized

representatives of bidders online (in case of e-Tenders) or physically present
(in case of e-Tenders as well as manual bidding process) who chose to
attend, at time & date specified in Clause 7 of D NIT(Section-1) on due date.
The bidder's representatives, who are present, shall sign in an attendance
register. Authority letter to this effect shall be submitted by the authorized
representatives of bidders before they are allowed to participate in bid
opening (A Format is given in enclosed in Section-7 C).
A maximum of two representatives of any bidder shall be authorized and
permitted to attend the bid opening.
Name of envelopes to be opened & information to be read out by Bid
Opening Committee
(i) In Single stage bidding & single envelope system; techno-commercial
bid & financial Bid will be opened on the date of tender opening given in
NIT.
(ii) In Single stage bidding & two envelopes system; the bids will be
opened in 2 stages i.e. the techno-commercial bid shall be opened on
the date of tender opening given in NIT. The financial bid will not be
opened on the Date of opening of techno commercial bids in this case &
sealed financial bids will be handed over to DGM (MMT), BSNL, CO./
Other section in BSNL, CO./ MM cell in circle/ SSA offices (as
applicable) for retention.
Thereafter the CET will evaluate Techno-commercial bids & the report
of CET will be approved by competent authority.
The financial bids of those bidders who are approved to be
techno-commercially compliant by the competent authority, will be
opened by TOC in front of techno commercially eligible bidders/
authorized representatives by sending them a suitable notice.
(iii) The following information should be read out at the time of
Techno-commercial bid opening:a) Name of the Bidder
b) Name of the item
c) EMD amount & validity and acceptability
d) Information in respect of eligibility of the bidder.
e) Details of bid modification/ withdrawal, if applicable.
(iv) The following information should be read out at the time of Financial bid
opening:a) Name of the Bidder
b) Name of the item
c) Quantities/prices quoted in the bid
d) Discount, if offered
e) Taxes & levies
Page 47
19.4
The date fixed for opening of bids, if subsequently declared as holiday by the
BSNL, the revised date of schedule will be notified. However, in absence of
such notification, the bids will be opened on next working day, time and
venue remaining unaltered.
20.0 CLARIFICATION OF BIDS

20.1 To assist in the examination, evaluation and comparison of bids, the purchaser
may, at its discretion ask the bidder for the clarification of its bid. The request
for the clarification and the response shall be in writing. However, no post bid
clarification at the initiative of the bidder shall be entertained.
20.2 If any of the documents, required to be submitted along with the technical bid
is found wanting, the offer is liable to be rejected at that stage. However the
purchaser at its discretion may call for any clarification regarding the bid
document within a stipulated time period. In case of non compliance to such
queries, the bid will be out rightly rejected without entertaining further
correspondence in this regard.
21.0 PRELIMINARY EVALUATION
21.1 Purchaser shall evaluate the bids to determine whether they are complete,
whether any computational errors have been made, whether required
sureties have been furnished, whether the documents have been properly
signed and whether the bids are generally in order.
21.2 Arithmetical errors shall be rectified on the following basis. Based on the
quoted percentage of duties and taxes, Freight etc. the amounts quoted
thereof shall be worked out and rounded off to 2 decimal points. In case the
unit price quoted in column 12 does not tally with its breakup quoted in col. 4,
6, 8, 10 & 11, the same shall be corrected by summing up the breakups. If
there is a discrepancy between the unit price and total price that is obtained
by multiplying the unit price and quantity, the unit price shall prevail and the
total price shall be corrected by the purchaser.
21.3 If there is a discrepancy between words and figures, the amount in words
shall prevail. If the supplier does not accept the correction of the errors, its
bid shall be rejected.
21.4 Prior to the detailed evaluation pursuant to clause 22, the Purchaser will
determine the substantial responsiveness of each bid to the Bid Document.
For purposes of these clauses, a substantially responsive bid is one which
confirms to all the terms and conditions of the Bid Documents without
material deviations. The purchaser's determination of bid's responsiveness
shall be based on the contents of the bid itself without recourse to extrinsic
evidence.
Page 48
21.5
21.6
A bid, determined as substantially non-responsive will be rejected by the

purchaser and shall not subsequent to the bid opening be made responsive
by the bidder by correction of the non-conformity.
The Purchaser may waive any minor infirmity or non-conformity or
irregularity in a bid which doesn't constitute a material deviation, provided
such waiver doesn't prejudice or affect the relative ranking of any bidder.
22
EVALUATION AND COMPARISON OF SUBSTANTIALLY RESPONSIVE

BIDS
22.1 The Purchaser shall evaluate in detail and compare the bids previously
determined to be substantially responsive pursuant to clause 21.
22.2 The evaluation and comparison of responsive bids shall be done on the basis
of Net cost to BSNL on the prices of the goods offered inclusive of Duties and
taxes (but excluding CENVAT-able Duties & Taxes), Sales Tax, Packing,
Forwarding, Freight and Insurance charges etc. as arrived in Col. 17 of the
price schedule in the Section-.9 Part B (I&II)of the Bid-document after
arithmetical correction in the manner laid down in clause 21.2 above.
As stipulated in clause 9.1, Octroi/ Entry Taxes are not to be included in the
composite price and hence the same will not be considered for the purpose
of evaluation and comparison of responsive bids. However, Octroi/ Entry
Taxes will be paid extra. as per actual wherever applicable on production of
proof of payment/relevant invoices/documents.
(a)
(b)
(c)
(d)
Duties & Taxes for which the firm has to furnish Cenvatable
Challans/ Invoices will be indicated separately in the PO/APO.
Vendors should furnish the correct E.D./Customs tariff Head in the
price Schedule. If the credit for the Duties and Taxes under CENVAT
Credit Rules, 2004 is found to be not admissible at any stage
subsequently owing to wrong furnishing of Tariff Head, then the
vendors will be liable to refund such non-admissible amount, if
already paid, along with penalty if charged by the concerned
authority.
In case the Duties & Taxes which are non CENVAT-able as per the
quotes indicated in the price schedule by the vendors and
subsequently at any stage it is found that Credit for such Duties &
Taxes is admissible as per CENVAT Credit Rules, 2004, then the
vendors will be liable to refund the amount equivalent to such Duties
& Taxes if already paid to them. However, the purchaser may allow
the supplier to submit necessary documents in this regard which may
enable the purchaser to avail the CENVAT credit provided such credit
is still available for the amount so paid as per CENVAT Credit Rules
2004.
The purchaser reserves the right to ask the bidders to submit
documentary proof confirming the correct Tariff Head from the
Page 49
(e)
E.D./Customs authority where the Tariff Head furnished against the

particular tendered item by different bidders differs from each other or
the same is found apparently not furnished in accordance with E.D./
Customs Tariff notifications.
If the supplier fails to furnish necessary supporting documents i.e.
Excise/ Customs invoices etc. in respect of the Duties/taxes which are
Cenvatable, the amount pertaining to such Duties/ Taxes will be
deducted from the payment due to the firm.
23.0
CONTACTING THE PURCHASER
23.1
Subject to Clause 20, no bidder shall try to influence the Purchaser on any
matter relating to its bid, from the time of the bid opening till the time the
contract is awarded.
Any effort by a bidder to modify its bid or influence the purchaser in the
purchaser's bid evaluation, bid comparison or contract award decision shall
result in the rejection of the bid.
23.2
24.0 PLACEMENT OF ORDER

24.1. The Purchaser shall consider placement of orders for commercial supplies
only on those eligible bidders whose offers have been found technically,
commercially and financially acceptable and whose goods have been type
approved/ validated by the purchaser. The Purchaser reserves the right to
counter offer price(s) against price(s) quoted by any bidder.
24.2 The ordering price of any bidder shall not exceed the lowest evaluated
package price. However, at a later stage if there is any increase in Govt.
duties/taxes within scheduled delivery date (SDD), the unit prices with
applicable revised duties/taxes will be paid to suppliers irrespective of their
ranking viz.L1/ L2/ L3 ..etc keeping other levies & charges unchanged.
24.3. The purchaser reserves the right for the placement of order of entire
tendered quantity on the bidder with the lowest evaluated price.
24.4 In the event of L2 and so on bidders refusing to accept its package de rated
to the price of L1 bidder, BSNL reserves the right to place the order for entire
quantity to the L1 bidder. It is mandatory for the L1 bidder to accept such an
offer (second APO) at evaluated L-1 price and shall perform the whole
contract as envisaged in the tender document. The additional quantity, due
to non-acceptance of respective quantity by L2 and/or L3 and so on bidders,
as envisaged in clause3 (Distribution of Quantity) in section 4 Part B, shall
be supplied by the L-1 bidder as part of whole contract.
25.
PURCHASER'S RIGHT TO VARY QUANTITIES

(a)
BSNL reserves the right to increase or decrease up to 25% of the
quantity of goods and services specified in the schedule of
requirements without any change in the unit price or other terms and
Page 50
conditions at the time of award of contract.

(b)
BSNL also reserves the right for placement of additional order or up to
50% of the additional quantities of goods and services contained in
the running tender/ contract within a period of twelve months from the
date of acceptance of first APO in the tender at the same rate or a rate
negotiated (downwardly) with the existing venders considering the
reasonability of rates based on prevailing market conditions and the
impact of reduction in duties and taxes etc and supplies to be
obtained within delivery period scheduled afresh.
c) In exceptional situation where the requirement is of an emergent
nature and it is necessary to ensure continued supplies from the
existing venders, the purchaser reserves the right to place repeat
order up to 100% of the quantities of goods and services contained in
the running tender /contract within a period of twelve months from the
date of acceptance of first APO in the tender at the same rate or a
rate negotiated (downwardly) with the existing venders considering
the reasonability of rates based on prevailing market conditions and
the impact of reduction in duties and taxes etc. Exceptional situation
and emergent nature should be spelt out clearly detailing the
justification as well as benefits accrued out of it and loss incurred in
case this provision is not invoked and approved by the authority
competent to accord administrative and financial approval for the
procurement calculated on the basis of total procurement i.e. initial
and proposed add-on quantity.
26.
PURCHASER'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR

ALL BIDS
The Purchaser reserves the right to accept or reject any bid, and to annul the
bidding process and reject all bids, at any time prior to award of contract
without assigning any reason whatsoever and without thereby incurring any
liability to the affected bidder or bidders on the grounds of purchasers
action.
27.
ISSUE OF ADVANCE PURCHASE ORDER
27.1. The issue of an Advance Purchase Order shall constitute the intention of the
Purchaser to enter into contract with the bidder.
27.2 The bidder shall within 14 days of issue of the advance purchase order, give
its acceptance along with performance security in conformity with the
proforma provided with the bid document at Section-7B.
27.3 L-1 bidder may be issued Advanced Purchase Order (APO) in two stages.
The first APO shall be issued for L-1 quantity as defined in clause above.
The second APO may be issued to L-1 bidder only when the Purchaser
exercises the right for placement of order on balance tendered quantity on
the bidder with the lowest evaluated price in conformity to Clause 24.3 &
Page 51
24.4 of Section 4 Part A.

28.
28.1
28.2
29.
SIGNING OF CONTRACT
The issue of Purchase order shall constitute the award of contract on the
bidder.
Upon the successful bidder furnishing performance security pursuant to
clause 27, the Purchaser shall discharge the bid security in pursuant to
clause 12, except in case of L-1 bidder, whose EMBG/ EMD shall be
released only after finalization of ordering of complete tendered quantity in
pursuance to clause no. 24.4 & 27.3 of this section..
ANNULMENT OF AWARD
Failure of the successful bidder to comply with the requirement of clause 27
& 28 shall constitute sufficient ground for the annulment of the award and the
forfeiture of the bid security in which event the Purchaser may make the
award to any other bidder at the discretion of the purchaser or call for new
bids.
30. QUALITY ASSURANCE REQUIREMENTS

The supplier shall have Quality Management System supported and
evidenced by the following:
a)
A Quality Policy.
b)
A management representative with authority and responsibility for
fulfilling QA requirements and for interfacing with purchaser in the
matters of Quality.
c)
Procedure for controlling design/ production engineering, materials,
choice of components/vendors, manufacturing and packaging
process for supplying quality products.
d)
System of Inward Good Inspection.
e)
System to calibrate and maintain required measuring and test
equipment.
f)
System for tracing the cause for non-conformance (traceability) and
segregating product which don't conform to specifications.
g)
Configuration management and change-control mechanism.
h)
A quality plan for the product.
i)
Periodical internal quality audits.
j)
A 'Quality Manual' detailing the above Or infrastructure assessment
certificate and Type Approval Certificate (TAC)/ Technical
Specifications Evaluation Certificate (TSEC) issued by "QA Circle"
shall be furnished.
31.
REJECTION OF BIDS
31.1 While all the conditions specified in the Bid documents are critical and are to
Page 52
31.2
31.3
31.4
be complied, special attention of bidder is invited to the following clauses of

the bid documents. Non-compliance of any one of these shall result in
outright rejection of the bid.
a)
Clauses 12.1, 12.2 & 13.1 of Section- 4 Part A: The bids will be
rejected at opening stage if Bid security is not submitted as per
Clauses 12.1 & 12.2 and bid validity is less than the period prescribed
in Clause 13.1 mentioned above.
b)
Clause 2 & 10 of Section-4Part A: If the eligibility condition as per
clause 2 of Section 4 Part A is not met and/ or documents prescribed
to establish the eligibility as per Clause 10 of section 4 Part A are not
enclosed, the bids will be rejected without further evaluation.
c)
Clause 11.2 (c) of Section-4 Part A: If clause-by-clause compliance
as well as deviation statements as prescribed are not given, the bid
will be rejected at the stage of primary evaluation.
d)
While giving compliance to Section-5 Part A, General Commercial
conditions, Section-4 Part B, Special Instructions to Bidders,
Section-5B Special (Commercial) Conditions of Contract and
Section-3 Technical Specifications ambiguous words like "Noted",
"Understood", Noted & Understood" shall not be accepted as
complied. Mere "Complied" will also be not sufficient, reference to the
enclosed documents showing compliances must be given.
e)
Section-9 Price Schedule: Prices are not filled in as prescribed in
price schedule.
f)
Section-4 Part A clause 9.5 on discount which is reproduced below:"Discount, if any, offered by the bidder shall not be considered unless
specifically indicated in the price schedule. Bidders desiring to offer
discount shall therefore modify their offer suitably while quoting and
shall quote clearly net price taking all such factors like Discount, free
supply etc. into account".
Before outright rejection of the Bid by Bid-opening team for non-compliance
of any of the provisions mentioned in clause 31.1(a), 31.1(b) of
Section-4PartA, the bidder company is given opportunity to explain their
position, however if the person representing the company is not satisfied
with the decision of the Bid opening team, he/they can submit the
representation to the Bid opening team immediately but in no case after
closing of the tender process with full justification quoting specifically the
violation of tender condition if any.
Bid opening team will not return the bids submitted by the bidders on the
date of tender opening even if it is liable for rejection and will preserve the
bids in sealed cover as submitted by taking the signatures of some of the
desirous representatives of the participating bidder/companies present on
the occasion.
The in-charge of Bid opening team will mention the number of bids with the
Page 53
name of the company found unsuitable for further processing on the date of
tender opening and number of representations received in Bid opening
Minutes and if Bid opening team is satisfied with the argument of the
bidder/company mentioned in their representation and feel that there is
prima-facie fact for consideration, the in-charge of the bid opening team will
submit the case for review to Officer competent to approve the tender as
early as possible preferably on next working day and decision to this effect
should be communicated to the bidder company within a week positively.
Bids found liable for rejection and kept preserved on the date of tender
opening will be returned to the bidders after issue of P.O. against the instant
tender.
31.5 If the reviewing officer finds it fit to open the bid of the petitioner, this should
be done by giving three (working) days notice to all the participating bidders
to give opportunity to participants desirous to be present on the occasion.
32.
ACTION BY PURCHASER AGAINST BIDDER(S)/ VENDOR(S) IN CASE

OF DEFAULT.
In case of default by Bidder(s)/ Vendor(s) such as
a) Does not supply the equipment in time;
b) Equipment does not perform satisfactory in the field in accordance with
the specifications;
c) Or any other default whose complete list is enclosed in Appendix-1.
Purchaser will take action as specified in Appendix-1 of this section.
33.
Clause deleted.
.
34.
NEAR-RELATIONSHIP CERTIFICATE
34.1. The bidder should give a certificate that none of his/ her near relative, as
defined below, is working in the units where he is going to apply for the
tender. In case of proprietorship firm certificate will be given by the
proprietor. For partnership firm certificate will be given by all the partners
and in case of limited company by all the Directors of the company excluding
Government of India/ Financial institution nominees and independent
non-Official part time Directors appointed by Govt. of India or the Governor
of the state and full time Directors of PSUs both state and central. Due to
any breach of these conditions by the company or firm or any other person
the tender will be cancelled and Bid Security will be forfeited at any stage
whenever it is noticed and BSNL will not pay any damage to the company or
firm or the concerned person.
34.2. The Company or firm or the person will also be debarred for further
participation in the concerned unit.
34.3 The near relatives for this purpose are defined as:(a)
Members of a Hindu undivided family.
Page 54
(b)
(c)
They are husband and wife.

The one is related to the other in the manner as father, mother, son(s)
& Son's wife (daughter in law), Daughter(s) and daughter's husband
(son in law), brother(s) and brother's wife, sister(s) and sister's
husband (brother in law).
34.4. The format of the certificate is given in Section 6 (B).
35.
VERIFICATION OF DOCUMENTS AND CERTIFICATES

The bidder will ensure that all the documents and certificates, including
experience/ performance and self certificates submitted by him are correct
and genuine before enclosing them in the bid. The onus of proving
genuineness of the submitted documents would rest with the bidder.
If any document/ paper/ certificate submitted by the participant bidder is
found / discovered to be false / fabricated / tempered / manipulated either
during bid evaluation or during award of contract or thereafter, then the
Purchaser will take action as per Clause-1 of Appendix-1 of this section.
Note for Tender opening Committee:
At the time of tender opening, the TOC will check/ verify that the documents
conforming to eligibility part are submitted by the participant bidder duly
authenticated by the authorized signatory to obviate any possibility of doubt
and dispute and maintain veracity of the documents / papers/ certificates.
The documents/ papers to be submitted in respective bid part have been
explicitly stated in clause- 7 of Section-4 Part A.
This opened bid part which is already signed by the authorized
representative of the bidder company during bid submission will be signed
by the tender opening committee on hard copy and preserve it along with the
bids received online in case of e-tendering.
These papers will be treated as authentic one, in case of any dispute.
36.
Security Clause as per latest guidelines and requirement

Mandatory Licensing requirements with regards to security related concerns
issued by the Government of India from time-to-time shall be strictly followed
and appropriate clauses shall be added in all bid documents. Necessary
guidelines in this regard shall be issued separately.
Page 55
37.
Reservation/ Procurement from MSE units: The guidelines / instructions /

laws issued vide D.O. no 21(1) -2011-M.A..April 25th, 2012 from Ministry of
Micro, Small & Medium Enterprise (MSME) with respect to provisions for
Micro & Small Enterprises (MSEs) shall be followed.
Note This clause shall be deleted if not applicable for the tender.
Page 56
SECTION-4 Part B
SPECIAL INSTRUCTIONS TO BIDDERS
The Special Instructions to Bidders shall supplement the 'Instructions to Bidders'
and in case of any conflict with those in Section-4 Part A i.e. GENERAL
INSTRUCTIONS TO BIDDERS (GIB), the provisions herein shall prevail.
1.
Eligibility Conditions
Eligibility conditions for each tender shall be framed on case-to-case basis
and shall be got approved from the tender approving authority.
Some hints on framing of eligibility conditions are given below:
The eligible bidders should be Indian companies registered to manufacture
the tendered item in India, having obtained clearance from Reserve Bank of
India wherever applicable.
They should have obtained valid Type Approval Certificate (TAC) from
Telecom Engineering Centre, DOT or TSEC from QA Wing of BSNL for the
tendered item against Technical Specifications given in the bid document
and should have successfully executed Educational/ Commercial orders
issued by BSNL/ MTNL/ DOT. The proof of manufacturing in India, Type
Approval Certificate (TAC) or Technical Specification Evaluation Certificate
(TSEC) and successful execution of educational/ commercial orders shall
form part of the bid.
Note :- The eligibility conditions for procurement of different types of equipment

should be decided taking into account:
1.
Type of equipment
2.
First procurement or repetitive procurement
3.
Available base of type approved vendors
4.
Status of commercial/ Educational order execution
The eligibility conditions need to be clearly defined as follows:
That bidders having type approval of the specified GR are eligible
to participate in the tender.
The bidders having type approval of the old GR for the same
equipment are also eligible to participate. Such bidders have to
obtain Type Approval Certificate or get their equipment validated
before placement of APO/ PO as the case may be. However, the
successful bidder will have to supply the equipment as per the
technical specifications given in the bid document.
A special condition will be included in the bid document specifying
the time frame for obtaining TAC/ completion of validation.
Page 57
For the items, which are being procured for the first time where no vender
or very few venders have obtained type approval so far, the eligibility
conditions may be defined as follows:
The bidder or its collaborator should have supplied 25% of the
tendered quantity to any other telecom service provider and a
certificate given by the competent authority to be enclosed along
with the bid.
In addition, it shall have to get the offered equipment Type
Approved/Validated against the specified GR in a time frame to be
defined in the bid document.
Note: After issue of NIT, eligibility conditions should not be changed.
2.
Bid Security
The bank guarantee/DD for bid security or Micro & Small Enterprise (MSE)
registration certificate for claiming exemption from submission of bid security,
as prescribed in clauses 12.1 & 12.2 of Section-4 A of the bid document
should be submitted by the bidder in a separate cover. The bank
guarantee/DD so submitted shall be as per the format given in Section-7 E
on prescribed judicial paper with stamps of proper value and should contain
full address of the issuing branch of the bank with its telephone number and
FAX number.
3.
Distribution of Quantity
(i) The Purchaser intends to limit the number of technically and
commercially responsive ..(N) bidders from the list of such bidders
arranged in increasing order of their evaluated prices starting from the
lowest for the purpose of ordering against this tender. The distribution
of the quantity shall be as given in Table 1 below.
Table 1(A) (Without provisions for MSE Units)
No. of Bidders Quantity allotted to the respective bidder
to be approved
(Col. 2)
(Col. 1)
L1
L2
L3
L4
L5 and so on
One bidder
100% Nil
Nil
Nil
Nil
Two Bidders
60%
40%
Nil
Nil
Nil
Three Bidders
50 %
30 % 20 %
Nil
Nil
Four Bidders
40 %
30 %
10 %
Nil
More than four 40%

bidders
20 %
In the inverse ratio of their evaluated quoted

prices
Page 58
Table 1(B) (With provisions for MSE Units)

No.
of Quantity allotted to the respective bidder
Bidders to
(Col. 2)
be approved
L1
L2
L3
L4
L5 and so on
(Col. 1)
Qty earmarked
for
MSE
bidder(s)
(Col. 3)
One bidder
80%
Nil
Nil
Nil
Nil
20 %
Two Bidders 48%
32%
Nil
Nil
Nil
20%
Three
Bidders
40 %
16 % Nil
Nil
20%
24 %
Four
Bidders
32 %
16 %
Nil
20%
More than 32%

four bidders
24 %
8%
In the inverse ratio of their evaluated 20%

quoted prices
Note 1(a):Table 1(B)shall be followed if the tender has provision for reservations for
MSE units.
Note 1(b): In case of tenders like for Turnkey projects etc. where it is not feasible to
award the work to more than one bidder, the provisions for MSEs shall not
be made.
Note 2: If no eligible MSE bidders are available then aforesaid earmarked 20%
quantity shall be de-reserved & the allotted quantity for other general
bidders will be restored to 100% and distribution shall be as per Table -1(A)
above.
Note 3: If L-1, L-2, L-3, etc happens to be MSE bidders then they will be given
allotted quantity as per the applicable sub-column of column 2 of above
table. In case, there are MSE bidders whose quoted price is within +15% of
L-1 price then 20% reserved quantity shall be distributed amongst such
MSE bidders.
(ii) In the event of any of the eligible bidder(s) not agreeing to supply the
equipment or not being considered by BSNL for ordering the equipment,
inter-se ranking of the bidders below the aforesaid bidder(s) will be recast to
fill up the vacated slot(s). This will be done to ensure that the number of
bidders on which order for supply of equipment to be placed remains same
as specified in the tender.
Note: See guidelines for distribution of quantity in Chapter 9
Note: Additional clauses may be added related to evaluation criteria, additional
documents required to be furnished, single stage or two-stage bidding, etc.
for which Chapter 3 may kindly be referred.
Note: De-rating factor shall be calculated for determination of ordering price in r/o
L-2 & others based on L-1 price.
Page 59
Section- 4 Part C
E-tendering Instructions to Bidders
Note :-The instructions given below are TCILs e-tender portal-centric and for
e-tenders invited by MM cell, BSNL, C.O. only. E-Portal address and the
according references/clauses may be suitably modified in this section as
applicable from time to time.
General
These Special Instructions (for e-Tendering) supplement Instruction to Bidders, as
enclosed in Sec 4 Part A of the Tender Documents.
Submission of Bids only through online process is mandatory for this Tender.
For conducting electronic tendering, BSNL HQ is using the portal
(https://www.tcil-india-electronictender.com)/ of M/s TCIL, a Government of India
Undertaking.
1. Tender Bidding Methodology:
Sealed Bid System (number of) Stages
Using Single/Two Envelopes,
Followed by e-Reverse Auction (if required by Business Unit / Planning cell)
after opening of the Financial bids. In case of two envelope system Financial &
Techno-commercial bids shall be submitted by the bidder at the same time.
2. Broad outline of activities from Bidders prospective:
1. Procure a Digital Signing Certificate (DSC)
2. Register on Electronic Tendering System (ETS)
3. Create Users and assign roles on ETS
4. View Notice Inviting Tender (NIT) on ETS
5. Download Official Copy of Tender Documents from ETS
6. Clarification to Tender Documents on ETS
Query to BSNL (Optional)
View response to queries posted by BSNL, as addenda.
7.
Bid-Submission on ETS
8.
Attend Public Online Tender Opening Event (TOE) on ETS Opening of
Techno-commercial Part
9.
View Post-TOE Clarification posted by BSNL on ETS (Optional) Respond
to BSNLs Post-TOE queries
10. Attend Public Online Tender Opening Event (TOE) on ETS Opening of
Financial-Part (Only for Technical Responsive Bidders)
11. Participate in e-Reverse Auction on ETS
For participating in this tender online, the following instructions need to be
read carefully. These instructions are supplemented with more detailed
guidelines on the relevant screens of the ETS.
Page 60
3. Digital Certificates
For integrity of data and its authenticity/ non-repudiation of electronic records,
and be compliant with IT Act 2000, it is necessary for each user to have a Digital
Certificate (DC). also referred to as Digital Signature Certificate (DSC), of Class
2 or above, issued by a Certifying Authority (CA) licensed by Controller of
Certifying Authorities (CCA) [refer http://www.cca.gov.in].
4. Registration
To
use
the
Electronic
Tender
portal
(https://www.tcil-india-electronictender.com), vendor needs to register on the
portal. Registration of each organization is to be done by one of its senior
persons who will be the main person coordinating for the e-tendering activities.
In ETS terminology, this person will be referred to as the Super User (SU) of
that organization. For further details, please visit the website/portal, and click on
the Supplier Organization link under Registration (on the Home Page), and
follow further instructions as given on the site.
Pay Annual Registration Fee as applicable.
Note: After successful submission of Registration details and Annual Registration
Fee (as applicable). Please contact TCIL/ ETS Helpdesk (as given below), to
get your registration accepted/activated.
TCIL Helpdesk/
Helpdesk
Telephone
ETS
Mobile Nos.
E-mail ID
BSNL Contact-1
BSNLs Contact Person
Telephone/ Mobile
(011) 2624 1071 / 2624 1072

[between 9:30 hrs to 18:00 hrs on working days]
98683 93717 / 98683 93775
ets_support@tcil-india.com
[Please mark CC: support@electronictender.com]
(011) 2371 7844

E-mail ID
BSNL Contact-2
BSNLs Contact Person
Telephone/ Mobile
(011) 2303 7172

E-mail ID
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5.

6.
7.
Bid related Information for this Tender (Sealed Bid)

The entire bid-submission would be online on ETS.
Broad outline of submissions are as follows:
Submission of Bid Security/ Earnest Money Deposit (EMD)
Submission of digitally signed copy of Tender Documents/
Addendum/addenda
Two Envelopes

Techno-commercial -Part

Financial-Part
Offline Submissions:
The bidder is requested to submit the following documents offline to DM
(MMT), BSNL Corporate Office, 2nd Floor, Bharat Sanchar Bhawan,
Janpath, New Delhi 110001 on or before the date & time of submission of
bids specified in covering letter of this tender document, in a Sealed
Envelope. The envelope shall bear (name of the work), the tender number
and the words DO NOT OPEN BEFORE (due date & time).
1. EMD-Bid Security in Original.
2. DD/ Bankers cheque against payment of tender fee.
3. Power of attorney in accordance with clause 14.4 of Section-4 Part A.
4. Integrity Pact.( If applicable)
Special Note on Security of Bids
Security related functionality has been rigorously implemented in ETS in a
multi-dimensional manner. Starting with 'Acceptance of Registration by the
Service Provider', provision for security has been made at various stages in
Electronic Tenders software. Security related aspects as regard Bid
Submission are outlined below:
As part of the Electronic Encrypter functionality, the contents of both the
Electronic Forms and the Main-Bid are securely encrypted using a
Pass-Phrase created by the Bidder himself. Unlike a password, a
Pass-Phrase can be a multi-word sentence with spaces between words (e.g.
I love this World). A Pass-Phrase is easier to remember, and more difficult to
break. It is recommended that a separate Pass-Phrase be created for each
Bid-Part. This method of bid-encryption does not have the security and
data-integrity related vulnerabilities which are inherent in e-tendering
systems which use Public-Key of the specified officer of a Buyer organization
for bid-encryption. Bid-encryption in ETS is such that the Bids cannot be
decrypted before the Public Online Tender Opening Event (TOE), even if
there is connivance between the concerned tender-opening officers of the
Buyer organization and the personnel of e-tendering service provider.
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Typically, Pass-Phrase of the Bid-Part to be opened during a particular

Public Online Tender Opening Event (TOE) is furnished online by each
bidder during the TOE itself, when demanded by the concerned Tender
Opening Officers who will open the bid. Else Tender Opening Officer may
authorize the bidder to open his bid himself.
There is an additional protection with SSL Encryption during transit from the
client-end computer of a Supplier organization to the e-tendering server/
portal.
8.
Public Online Tender Opening Event (TOE)

ETS offers a unique facility for Public Online Tender Opening Event (TOE).
Tender Opening Officers as well as authorized representatives of bidders
can attend the Public Online Tender Opening Event (TOE) from the comfort
of their offices. For this purpose, representatives of bidders (i.e. Supplier
organization) dully authorized are requested to carry a Laptop and Wireless
Connectivity to Internet.
Every legal requirement for a transparent and secure Public Online Tender
Opening Event (TOE) has been implemented on ETS. As soon as a Bid is
decrypted with the corresponding Pass-Phrase as submitted online by the
bidder himself (during the TOE itself), salient points of the Bids are
simultaneously made available for downloading by all participating bidders.
The work of taking notes during a manual Tender Opening Event is
therefore replaced with this superior and convenient form of Public Online
Tender Opening Event (TOE).
ETS has a unique facility of Online Comparison Chart which is dynamically
updated as each online bid is opened. The format of the chart is based on
inputs provided by the Buyer for each Tender. The information in the
Comparison Chart is based on the data submitted by the Bidders in
electronic forms. A detailed Technical and/ or Financial Comparison Chart
enhances Transparency. Detailed instructions are given on relevant
screens.
ETS has a unique facility of a detailed report titled Minutes of Online Tender
Opening Event (TOE) covering all important activities of Online Tender
Opening Event (TOE). This is available to all participating bidders for
Viewing/ Downloading.
There are many more facilities and features on ETS. For a particular tender,
the screens viewed by a Supplier will depend upon the options selected by
the concerned Buyer.
NOTE: In case of internet related problem at a bidders end, especially during

critical events such as a short period before bid-submission deadline,
during online public tender opening event, during e-auction, it is the bidders
responsibility to have backup internet connections. In case there is a
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problem at the e-procurement/ e-auction service-providers end (in the

server, leased line, etc) due to which all the bidders face a problem during
critical events, and this is brought to the notice of BSNL by the bidders in
time, then BSNL will promptly re-schedule the affected event(s).
9.
E-Reverse Auction
E-Reverse Auction would be conducted on Unit/ total package/ net cost to
BSNL value for bid evaluation, subsequently after the opening of the
Financial-Part.
The following would be parameters for e-Reverse Auction:
S. No.
Parameter
Value
Date and Time of

Reverse-Auction Bidding Event
Will be intimated to
Technically Responsive
bidders after the opening
of Financial-part.
Duration of Reverse-Auction Bidding

Event
( Typically 1 to 2 )
Hours
Automatic extension of the

Reverse-Auction Closing Time, if last bid
received is within a Pre-defined
Time-Duration before the
Reverse-Auction Closing Time
Yes
3.1
Pre-defined Time-Duration
. xx Minutes(Typically
05 minutes)
3.2
Time-Duration of Automatic extension
..yy Minutes (Typically

10 minutes)
3.3
Maximum number of Auto-Extensions
..nn Automatic
Extensions. (Typically 04
to 06 extensions)
Criteria of Bid-Acceptance
Beat on Starting last

quoted Price, as well as,
Beat on Rank-1 Bid Value
Entity Start-Price
Unit/ total package/ net

cost to BSNL (To be
decided by planning cell)
Minimum Bid-Decrement
..( Value in
Currency) To be decided
by planning cell
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Display of Pseudo Identity of Bidders

during bidding period
To all Bidders, as well as,

BSNLs officers.
Display of Bidders own current Rank
Yes
Note : Parameters at S. No. 5 & 6 shall be confirmed after opening & evaluation of
Financial bid parts.
10. Other Instructions
For further instructions, the vendor should visit the home-page of the portal
(https://www.tcil-india-electronictender.com), and go to the User-Guidance
Center
The help information provided through ETS User-Guidance Center is
available in three categories Users intending to Register / First-Time Users,
Logged-in users of Buyer organizations, and Logged-in users of Supplier
organizations. Various links are provided under each of the three categories.
Note: It is strongly recommended that all authorized users of Supplier
organizations should thoroughly peruse the information provided under the
relevant links, and take appropriate action. This will prevent hiccups, and
minimize teething problems during the use of ETS.
The following FOUR KEY INSTRUCTIONS for BIDDERS must be
assiduously adhered to:
1.
Obtain individual Digital Signing Certificate (DSC or DC) well in advance
of your first tender submission deadline on ETS.
2.
Register your organization on ETS well in advance of your first tender
submission deadline on ETS
3.
Get your organizations concerned executives trained on ETS well in
advance of your first tender submission deadline on ETS
4.
Submit your bids well in advance of tender submission deadline on ETS
as there could be last minute problems due to internet timeout,
breakdown, etc.
While the first three instructions mentioned above are especially relevant
to first-time users of ETS, the fourth instruction is relevant at all times.
11.
Minimum Requirements at Bidders end
Computer System with good configuration (Min P IV, 1 GB RAM,

Windows XP)
Broadband connectivity.
Microsoft Internet Explorer 6.0 or above
Digital Certificate(s) for users.
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12.
Vendors Training Program

One day training (10:00 to 17:00) would be provided. Training is optional.
Vendors are requested to carry a Laptop and Wireless Connectivity to
Internet.
Tentative Dates
Date of uploading of Tender document +
7 days
Venue
Meeting Room, 2nd Floor, BSNL
Corporate Office, Bharat Sanchar
Bhawan, Janpath, New Delhi 110001
Vendors Training Charges
Rs. 2,500/(Per Participant) per training (plus Service Tax as applicable)
day
Mode of Payment of Fees
DD drawn in favour of M/s TCIL, New
Delhi & payable at New Delhi
Page 66
SECTION-5 Part A
GENERAL (COMMERCIAL) CONDITIONS OF CONTRACT
1.
APPLICATION
The general condition shall apply in contracts made by the purchaser for the
procurement of goods.
2.
STANDARDS
The goods supplied under this contract shall conform to the standards
prescribed in the Technical Specifications mentioned in section -3.
3.
PATENT RIGHTS
The supplier shall indemnify the purchaser against all third-party claims of
infringement of patent, trademark or industrial design rights arising from use
of the goods or any part thereof in Indian Telecom Network.
4.
4.1
PERFORMANCE SECURITY
All suppliers (including MSEs who are registered with the designated MSME
bodies, like National Small Scale Industries Corporation etc. shall furnish
performance security to the purchaser for an amount equal to 5% of the
value of Advance purchase order within 14 days from the date of issue of
Advance Purchase Order by the Purchaser.
The proceeds of the performance security shall be payable to the Purchaser
as compensation for any loss resulting from the supplier's failure to complete
its obligations under the contract.
The performance security Bond shall be in the form of Bank Guarantee
issued by a scheduled Bank and in the proforma provided in 'Section-7B of
this Bid Document.
The performance security Bond will be discharged by the Purchaser after
completion of the supplier's performance obligations including any warranty
obligations under the contract.
4.2
4.3
4.4
5.
5.1
5.2
INSPECTION AND TESTS

The Purchaser or its representative shall have the right to inspect and test
the goods as per prescribed test schedules for their conformity to the
specifications. Where the Purchaser decides to conduct such tests on the
premises of the supplier or its subcontractor(s), all reasonable facilities and
assistance like Testing instruments and other test gadgets including access
to drawings and production data shall be furnished to the inspectors at no
charge to the purchaser.
Should any inspected or tested goods fail to conform to the specifications the
purchaser may reject them and the supplier shall either replace the rejected
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5.3
5.4
5.5
5.6
goods or make all alterations necessary to meet Specification / requirements

free of cost to the purchaser.
Notwithstanding the pre-supply tests and inspections prescribed in clause
5.1 & 5.2 above, the equipment and accessories on receipt in the
Purchaser's premises will also be tested during and after installation before
"take over" and if any equipment or part thereof is found defective, the same
shall be replaced free of all cost to the purchaser as laid down in clause 5.4
below.
If any equipment or any part thereof, before it is taken over under clause 5.5,
is found defective or fails to fulfill the requirements of the contract, the
inspector shall give the Supplier notice setting forth details of such defects or
failure and the supplier shall make the defective equipment good, or alter the
same to make it comply with the requirements of the contract forthwith and in
any case within a period not exceeding three months of the initial report.
These replacements shall be made by the supplier free of all charges at site.
Should it fail to do so within this time, the purchaser reserves the discretion
to reject and replace at the cost of the supplier the whole or any portion of
equipment as the case may be, which is defective or fails to fulfill the
requirements of the contract. The cost of any such replacement made by the
purchaser shall be deducted from the amount payable to the supplier.
When the performance tests called for have been successfully carried out,
the inspector / ultimate consignee will forthwith issue a Taking Over
Certificate. The inspector /ultimate consignee shall not delay the issue of any
"taking Over Certificate" contemplated by this clause on account of minor
defects in the equipment which do not materially affect the commercial use
thereof provided that the supplier shall undertake to make good the same in
a time period not exceeding six months. The Taking Over Certificate shall be
issued by the ultimate consignee within six weeks of successful completion
of tests. In this case, BCPC (Bills Copy Payable Challan) shall be equivalent
to "Taking Over Certificate", issuance of which shall certify receipt of goods
in safe and sound condition. However, they shall not discharge the supplier
of their warranty obligation. BCPC in respect of last consignment against the
purchase order will be equivalent to "Taking Over Certificate".
Nothing in clause 5 shall in any way release the Supplier from any warranty
or other obligations under this contract.
6.
DELIVERY AND DOCUMENTS
6.1
Delivery of the goods and documents shall be made by the supplier in

accordance with the terms specified by the purchaser in its schedule of
requirements and special conditions of contracts, and the goods shall remain
at the risk of the supplier until delivery has been completed. The delivery of
the equipment shall be to the ultimate consignee as given in the purchase
order.
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6.2
6.3
6.4
7.
7.1
7.2
7.3
7.4
The delivery of the goods and documents shall be completed within time
frame stated in note 7 of Clause 6 of Section-2 (Tender information).
All Technical assistance for installation, commissioning and monitoring of
the equipment shall be provided by the Supplier at no extra cost during
laboratory evaluation, validation/ type approval and field trial, if any.
The extension of delivery period against the purchase order, if any, should
be granted subject to the condition that BSNL shall have the absolute right to
revise the price(s) and also to levy penalty for the delayed supplies.
TRAINING
The bidder shall provide training for installation and maintenance staff of the
purchaser free of cost where required.
The bidder shall specify in its bid the number of trainees, quantum of
proposed
training, pre-training qualifications required of the trainees and duration of
the proposed training.
The bidder shall provide all training material and documents.
Conduct of training of the purchaser's personnel shall be at the suppliers'
plant and/or on-site in assembly start-up operation, maintenance and/or
repair of the supplied goods.
8.
INCIDENTAL SERVICES
The supplier may be required to provide any or all of the following services:
(a)
Performance or supervision of on-site assembly and/or start-up of the
supplied Goods;
(b)
Furnishing of tools required for assembly and/or maintenance of
supplied Goods;
(c )
Performance of supervision or maintenance and/or repair of the
supplied Goods, for a period of time agreed by the parties provided
that this service shall not relieve the supplier of any warranty
obligations under this contract.
9.
9.1
SPARES
The supplier shall be required to provide a list of the following material and
notifications pertaining to spare parts manufactured or distributed by the
supplier of spares including cost and quantity considered for arriving at the
price of spares in Sec-4 Part A clause 9.
(a)
Such spare parts as the purchaser may elect to purchase from the
supplier provided that such purchase shall not relieve the supplier of
any warranty obligation under the contract.
(b)
In the event of termination of production of the spare parts, the
supplier shall:
(i)
give advance notification to the purchaser pending termination
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(not less than 2 years), in sufficient time to enable the

purchaser to procure life time spare; and
(ii)
following such advance intimation of termination, furnish at no
cost to the purchaser, the blue prints, drawings and
specifications of spare parts, if and when requested.
9.2 .Over a period of three years starting from the date of final acceptance, the
supplier shall supply, at its own cost, all necessary spares which have not
been included in the offer as part of the requirement. These spares should
be supplied within a maximum period of 30 days from the notification by the
purchaser of its need.
10.
10.1
WARRANTY
The supplier shall warrant that the stores to be supplied shall be new and
free from all defects and faults in materials used, workmanship and
manufacture and shall be of the highest grade and consistent with the
established and generally accepted standards for materials of the type
ordered and shall perform in full conformity with the specifications and
drawings. The supplier shall be responsible for any defect that may develop
under the conditions provided by the contract and under proper use, arising
from faulty material, design or workmanship such as corrosion of the
equipment, inadequate quantity of material to meet equipment
requirements, inadequate contact protection, deficiencies in circuit design
and/ or otherwise and shall remedy such defects at its own cost when called
upon to do so by the Purchaser who shall state in writing in what respect the
stores are faulty. This warranty shall survive inspection or payment for/ and
acceptance of goods, but shall expire (except in respect of complaints
notified prior to such date) twelve months after the stores have been taken
over under clause 5.5 above.
10.2 If it becomes necessary for the Supplier to replace or renew any defective
portion(s) of the equipment under this clause, the provisions of the clause
10.1 shall apply to the portion(s) of the equipment so replaced or renewed or
until the end of the above mentioned period of twelve months, whichever
may be later. If any defect is not remedied by the supplier within a
reasonable time, the Purchaser may proceed to get the defects remedied
from other supplier etc., at the supplier's risk and expenses, but without
prejudice to any other rights which the purchaser may have against the
supplier in respect of such defects.
10.3 Replacement under warranty clause shall be made by the supplier free of all
charges at site including freight, insurance and other incidental charges.
11.
11.1
PAYMENT TERMS
Payment of specified percentage of the price as stated in clause 5 of Section
-2 (Tender Information) shall be made on receipt of goods by consignee. For
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claiming this payment the following documents are to be submitted to the

paying authority.
(a) Invoice clearly indicating break up details of composite price i.e. Basic,
E.D., Sales Tax, any other Duties and Taxes, Freight/Packing Charges,
Service Tax etc.
(b) Acknowledged Delivery Challan in original.
(c) Excise gate pass / invoice or equivalent document, if applicable.
(d) Inspection Certificate of QA(Payable copy in original)
(e) The sea freight receipt as per the rates approved by the Ministry of
Water and Surface Transport, if applicable.
(f) Proof of payment of Octroi/ entry tax etc., if applicable.
Note :- If the supplier fails to furnish necessary supporting documents i.e.
excise/Customs invoices etc. in respect of the Duties/taxes which are
CENVAT-able, the amount pertaining to such Duties/Taxes will be
11.2 The balance payment shall be released within 6 months from the date of
supply of the equipment in case there are no damage/shortages. In those
cases where such shortages/damages are intimated to the supplier in
writing, the balance payment shall be released only after the cases are
settled in accordance with the provision of the P.O.
11.2.1 100% Payment (in place of Payment % specified in clause 11.1 above) may
be made on delivery, provided that an additional Bank Guarantee for an
amount equal to Balance Payment % of the value of supplies [specified in
clause 11.2 above] valid for a minimum period of seven months is furnished
by the supplier along with an undertaking that the equipment/stores
supplied shall be free from damages/shortages. In case purchaser
intimates shortages/ damages in received stores to the supplier in writing,
the Bank Guarantee shall be extended without fail by the supplier for a
suitable period as requested by the purchaser in writing. Failure to do so
shall result in forfeiture of Bank Guarantee. The Bank Guarantee shall be
accepted at Circle Head Quarter and shall be released only after the cases
are settled in accordance with the provisions available in the Purchase
Order/ Tender document.
Note: The actual payment conditions for new products or procurements having
installation and AMC services may be decided on case to case basis and
incorporated in special conditions of the contract.
11.3. Form C and also a certificate stating that the tendered item (stores) are
meant for the use of BSNL shall be provided by the purchaser on the request
of the bidder as and when asked for.
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11.4. No payment will be made for goods rejected at the site on testing.
11.5. The bidder has to give the mandate for receiving payment costing Rs.5 lakhs
and above electronically and the charges, if any, levied by bank has to be
borne by the bidder/ contractor/supplier. The bidder company is required to
give the following information for this purpose:(a)
Beneficiary Bank Name:
(b)
Beneficiary branch Name:
(c)
IFSC code of beneficiary Branch
(d)
Beneficiary account No.:
(e)
Branch Serial No. (MICR No.):
12.
PRICES
12.1
Prices charged by the supplier for goods delivered and services performed
under the contract shall not be higher than the prices quoted by the Supplier
in its Bid except for variation caused by change in taxes/ duties as specified
in Clause-12.2 mentioned below.
For changes in taxes/ duties during the scheduled delivery period, the unit
price shall be regulated as under:
(a)
Prices will be fixed at the time of issue of purchase order as per taxes
and statutory duties applicable at that time
(b)
In case of reduction of taxes and other statutory duties during the
scheduled delivery period, purchaser shall take the benefit of
decrease in these taxes/ duties for the supplies made from the date of
enactment of revised duties/taxes.
(c)
In case of increase in duties/taxes during the scheduled delivery
period, the purchaser shall revise the prices as per new duties/ taxes
for the supplies, to be made during the remaining delivery period as
per terms and conditions of the purchase order.
Any increase in taxes and other statutory duties/ levies, after the expiry of the
delivery date shall be to the supplier's account. However, benefit of any
decrease in these taxes/duties shall be passed on to the Purchaser by the
supplier. The total price is to be adjusted (by reducing the basic price) with
increased duties and taxes as per price mentioned in PO.
12.2
12.3
13.
13.1
CHANGES IN PURCHASE ORDERS

The purchaser may, at any time, by a written order given to a supplier, make
changes within the general scope of the contract in any one or more of the
following:
(a) drawings, designs or specifications, where Goods to be supplied under
the contract are to be specifically manufactured for the Purchaser;
(b) the method of transportation or packing;
(c) the place of delivery; or
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13.2
14.
(d) the services to be provided by the supplier.

If any such change causes an increase or decrease in the cost of, or the time
required for the execution of the contract an equitable adjustment shall be
made in the contract price or delivery schedule, or both, and the contract
shall accordingly be amended. Any proposal by the supplier for adjustment
under this clause must be made within thirty days from the date of the receipt
of the change in order.
SUBCONTRACTS
The Supplier shall notify the Purchaser in writing of all subcontracts awarded
under this contract if not already specified in its bid. Such notification, in its
original bid or later shall not relieve the supplier from any liability or obligation
under the Contract.
15.
15.1
DELAYS IN THE SUPPLIER'S PERFORMANCE

Delivery of the Goods and performance of the services shall be made by the
Supplier in accordance with the time schedule specified by the purchaser in
its purchase order. In case the supply is not completed in the stipulated
delivery period, as indicated in the Purchase Order, purchaser reserves the
right to short-close/ cancel this purchase order and/ or recover liquidated
damage charges. The cancellation/ short-closing of the order shall be at the
risk and responsibility of the supplier and purchaser reserves the right to
purchase balance unsupplied item at the risk and cost of the defaulting
vendors.
15.2 Delay by the Supplier in the performance of its delivery obligations shall
render the Supplier liable to any or all of the following sanctions:
(a)
forfeiture of its performance security,
(b)
imposition of liquidated damages, and/ or
(c)
Short closure of the contract in part or full and/ or termination of the
contract for default.
15.3 If at any time during the performance of the contract, the supplier encounters
condition impending timely delivery of the goods and performance of service,
the supplier shall:
(a)
Promptly notify to the Purchaser in writing the fact of the delay, its
likely duration and its cause(s). As soon as practicable after receipt of
the supplier's notice, the purchaser shall evaluate the situation and
may at its discretion extend the period for performance of the contract
(by not more than 20 weeks or as per provisions of clause 16.2
Section-5A as per provision given below :
(b)
The vendor has to submit their request for extension along with the
undertaking as per clause 24 Section-5A (Fall Clause) and a copy of
QA inspection certificate at least two weeks before the expiry of
delivery period. The vendor shall also submit unconditional
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15.4
16.
16.1
16.2
acceptance of the conditions for delivery period extension i.e.

applicability of liquidated damages, prices to be provisional and to be
regulated as per clauses 12.3 and 24 of section-5A and submission of
additional BG, wherever applicable. The decision regarding extension
shall be communicated within two weeks of the receipt of request and
after receipt of the unconditional acceptance and the undertaking
mentioned above.
(c)
In case extension is being granted beyond 20 weeks then the vendor
shall submit additional BG while seeking extension. For piecemeal
items the amount of additional BG shall be 5% of the value of balance
quantity of items to be supplied for which extension in delivery period
has been sought. In case of infrastructure/turnkey projects other than
as stated above, 1% of the total project value shall be the value for
additional BG. The additional BG shall be valid for six months beyond
extension of. delivery period sought and shall be discharged after the
full ordered quantity has been supplied to the ultimate consignee
within the last extended delivery period on submission of inspection
certificate from QA and consignee receipt without prejudice to the
other remedies available to the purchaser.
(d)
If the vendor fails to deliver the full ordered quantity even during
extended delivery period then the PO shall be short-closed and the
Performance Bank Guarantee as well as additional BG shall be
forfeited.
(e)
Format of (i) letters conveying conditions of DP extension and (ii) DP
extension letter are at Section 7 Part A & Part B. .
If the supplies are not completed in the extended delivery period, the
purchase order shall be short-closed and both the Performance securities
shall be forfeited.
LIQUIDATED DAMAGES
The date of delivery of the stores stipulated in the acceptance of the tender
should be deemed to be the essence of the contract and delivery must be
completed not later than the dates specified therein. Extension will not be
given except in exceptional circumstances. Should, however, deliveries be
made after expiry of the contracted delivery period, without prior
concurrence of the purchaser and be accepted by the consignee, such
delivery will not deprive the purchaser of its right to recover liquidated
damage under clause 16.2 below. However, when supply is made within 21
days of the contracted original delivery period, the consignee may accept the
stores and in such cases the provision of clause 16.2 will not apply. Further,
DP extension for this grace period of 21 days shall not be necessary.
While granting extension of delivery period as per clause 15.3, the liquidated
damages shall be levied as follows:
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(a)
16.3
16.4
Should the supplier fails to deliver the store or any consignment thereof
within the period prescribed and agreed for delivery, the purchaser,
without prejudice to other remedies available to the purchaser shall be
entitled to recover, as agreed liquidated damages for breach of contract,
a sum equivalent to 0.5% of the value of the delayed supply and/ or
undelivered material/ supply for each week of delay or part thereof for a
period up to 10 (TEN) weeks, and thereafter at the rate of 0.7% of the
value of the delayed supply and/ or undelivered material/ supply for
each week of delay or part thereof for another TEN weeks of delay.
(b) DP extension beyond 20 weeks would not be generally allowed. The
extension beyond 20 weeks may be decided in most exceptional
circumstances on case to case basis, by the CGM concerned in case of
tenders floated by Circles and by the Functional Director concerned in
case tenders floated by Corporate Office, stating reasons and
justifications for grant of extension of delivery period beyond 20 weeks.
(c) In the case of package supply/ turnkey projects when the delayed
portion of the supply materially hampers installation and
commissioning of the systems, LD charges shall be levied as above on
the total value of the concerned package of the Purchase Order.
(d) Quantum of liquidated damages assessed and levied by the purchaser
and decision of the purchaser thereon shall be final and binding on the
supplier, further the same shall not be challenged by the supplier either
before Arbitration tribunal or before the court. The same shall stand
specifically excluded from the purview of the arbitration clause, as such
shall not be referable to arbitration. However, when supply is made to
the ultimate consignee within 21 days of QA clearance in the extended
delivery period and the goods were dispatched within this delivery
period, the consignee may accept the stores and in such cases the LD
shall be levied up to the date of dispatch after QA clearance only.
(e) The total value of the liquidated damages as per above sub-clauses
shall be limited to a maximum of 12% (Twelve percent) i.e. LD shall be
levied up to 20 weeks only as per provision at Para (a).
In cases where the scheduled delivery period is distributed month-wise or is
in installments, the liquidated damages shall be imposed for delay in each
scheduled month/ installment. Liquidated damages shall be calculated
separately for quantities to be supplied in every month/ installment and the
corresponding delay. If the supplier supplies full quantity before the expiry of
the scheduled delivery period of the last month/ installment but there is delay
in month-wise/ installment-wise supply, then also liquidated damages shall
be levied on the supplies against the earlier months/ installments that have
been delayed. Twenty (20) weeks for the purpose of additional BG and grant
of DP extension shall be counted from the last month/ installment.
Wherever Clause of grace period of 21 days exists in the Purchase Order as
Page 75
well as in the Tender document against which the Purchase Order has been
released, applicability of the grace period shall be subject to:
(a) The Store has been offered to QA by the Supplier for
Inspection/Testing within the contracted original delivery period.
(b) 'QA has cleared the equipment for dispatch within the contracted
original delivery period.
(c) The Supplier has carried out dispatch/ dispatched the equipment with
in contracted original delivery period. For claiming benefit of grace
period, the supplier shall have to satisfy the Paying Authority by
furnishing documents of dispatch confirming that it has actually
dispatched the equipment within contracted original delivery period.
(d) The Store has been received by the ultimate consignee with in 21 days
of the expiry of contracted original delivery period.
(e) The grace period of 21 days shall be allowed only in those cases which
fulfill all the conditions given in Para (a) to (d) above. During grace
period no LD charges shall be levied.
Note : 1. In case of turnkey projects, the additional BG and LD clauses
related to delay in Installation & commissioning activities, shall be fine-tuned
to meet the requirements of the project and shall be included in the special
conditions Section-5 Part B of the concerned bid document) after approval of
the Management. In these cases, the tender approving authority as per
delegation of financial powers shall be competent authority to decide
applicability of LD on the Installation and commissioning portion in case
delay is on part of BSNL. However, for supply of equipment in such projects,
the terms and conditions shall be the same as mentioned in clauses 15.3
and 16.2 of Section-5 Part A.
17.
17.1
FORCE MAJEURE
If, at any time, during the continuance of this contract, the performance in
whole or in part by either party of any obligation under this contract is
prevented or delayed by reasons of any war or hostility, acts of the public
enemy, civil commotion, sabotage, fires, floods, explosions, epidemics,
quarantine restrictions, strikes, lockouts or act of God (hereinafter referred to
as events) provided notice of happenings of any such eventuality is given by
either party to the other within 21 days from the date of occurrence thereof,
neither party shall by reason of such event be entitled to terminate this
contract nor shall either party have any claim for damages against other in
respect of such non-performance or delay in performance, and deliveries
under the contract shall be resumed as soon as practicable after such an
event come to an end or cease to exist, and the decision of the Purchaser as
to whether the deliveries have been so resumed or not shall be final and
conclusive. Further that if the performance in whole or part of any obligation
under this contract is prevented or delayed by reasons of any such event for
a period exceeding 60 days, either party may, at its option, terminate the
contract.
Page 76
17.2
Provided, also that if the contract is terminated under this clause, the
Purchaser shall be at liberty to take over from the Supplier at a price to be
fixed by the purchaser, which shall be final, all unused, undamaged and
acceptable materials, bought out components and stores in course of
manufacture which may be in possession of the Supplier at the time of such
termination or such portion thereof as the purchaser may deem fit, except
such materials, bought out components and stores as the Supplier may with
the concurrence of the purchaser elect to retain.
18.
ACTION BY PURCHASER AGAINST BIDDER(S)/ VENDOR(S) IN CASE

OF DEFAULT.
18.1 In case of default by Bidder(s)/ Vendor(s) such as
(a) Failure to deliver and/ or commission any or all of the goods within the
time period(s) specified in the contract, or any extension thereof
granted by the purchaser pursuant to clause15 of this section;
(b) Failure to perform any other obligation(s) under the Contract; and
(c) Equipment does not perform satisfactory in the field in accordance
with the specifications;
(d) Or any other default whose complete list is enclosed in Appendix-1 of
Section-4, Part-A;
Purchaser will take action as specified in Appendix-1 of Section-4, Part-A.
19.
Clause deleted.
20. ARBITRATION
20.1 In the event of any question, dispute or difference arising under this
agreement or in connection there-with (except as to the matters, the decision
to which is specifically provided under this agreement), the same shall be
referred to the sole arbitration of the CMD, BSNL or in case his designation is
changed or his office is abolished, then in such cases to the sole arbitration
of the officer for the time being entrusted (whether in addition to his own
duties or otherwise) with the functions of the CMD, BSNL or by whatever
designation such an officer may be called (hereinafter referred to as the said
officer), and if the CMD or the said officer is unable or unwilling to act as such,
then to the sole arbitration of some other person appointed by the CMD or
the said officer. The agreement to appoint an arbitrator will be in accordance
with the Arbitration and Conciliation Act 1996 as amended from time to time.
There will be no objection to any such appointment on the ground that the
arbitrator is a Government Servant or that he has to deal with the matter to
which the agreement relates or that in the course of his duties as a
Government Servant he has expressed his views on all or any of the matters
in dispute. The award of the arbitrator shall be final and binding on both the
parties to the agreement. In the event of such an arbitrator to whom the
Page 77
20.2
20.3
matter is originally referred, being transferred or vacating his office or being

unable to act for any reason whatsoever, the CMD, BSNL or the said officer
shall appoint another person to act as an arbitrator in accordance with terms
of the agreement and the person so appointed shall be entitled to proceed
from the stage at which it was left out by his predecessors.
The arbitrator may from time to time with the consent of both the parties
enlarge the time frame for making and publishing the award. Subject to the
aforesaid, Arbitration and Conciliation Act, 1996 and the rules made there
under, any modification thereof for the time being in force shall be deemed to
apply to the arbitration proceeding under this clause.
The venue of arbitration shall be BSNL CO New Delhi and/or Circle/SSA
HQ or the office of the Arbitrator situated at New Delhi or at the respective
Territorial Circle/SSA HQ ,as the case may be.
21.
SET OFF
Any sum of money due and payable to the supplier (including security deposit
refundable to him) under this contract may be appropriated by the purchaser
or the BSNL or any other person(s) contracting through the BSNL and set off
the same against any claim of the Purchaser or BSNL or such other person or
person(s) for payment of a sum of money arising out of this contract or under
any other contract made by the supplier with the Purchaser or BSNL or such
other person(s) contracting through the BSNL.
22.
INTIMATION OF SUPPLY STATUS

The bidders, who are given Purchase Orders, must give the details of the
supplies made against all the Purchase Orders every month on the first
working day of the following month to MM and the concerned User Branches
of BSNL.
23.
DETAILS OF THE PRODUCT

The bidder should furnish the name of its collaborator (if applicable), brand
name, model number and type of the products offered in this tender. The
technical literatures of the products should also be submitted. No change in
either technology or product shall be permitted after opening of bids.
24.
24.1
FALL CLAUSE
The prices once fixed will remain valid during the scheduled delivery period
except for the provisions in clause 12.1 of Section-5A. Further, if at any time
during the contract
(a) It comes to the notice of purchaser regarding reduction of price for the
same or similar equipment/ service;
And / or
(b)
The prices received in a new tender for the same or similar
Page 78
24.2
24.3
24.4
equipment/ service are less than the prices chargeable under the contract.
The purchaser, for the purpose of delivery period extension, if any, will
determine and intimate the new price, taking into account various related
aspects such as quantity, geographical location etc., and the date of its effect
for the balance quantity/ service to the vendor. In case the vendor does not
accept the new price to be made applicable during the extended delivery
period and the date of its effect, the purchaser shall have the right to
terminate the contract without accepting any further supplies. This
termination of the contract shall be at the risk and responsibility of the
supplier and the purchaser reserves the right to purchase the balance
unsupplied quantity/ service at the risk and cost of the defaulting vendor
besides considering the forfeiture of its performance security.
The vendor while applying for extension of time for delivery of
equipment/services, if any, shall have to provide an undertaking as "We
have not reduced the sale price, and/ or offered to sell the same or similar
equipment/ service to any person/ organization including Department of
central/state Government or any central/ state PSU at a price lower than the
price chargeable under the contract for scheduled delivery period."
In case under taking as in Clause 24.3 is not applicable, the vendor will give
the details of prices, the name(s) of purchaser, quantity etc. to the purchaser,
while applying extension of delivery period.
25. COURT JURISDICTION

25.1 Any dispute arising out of the tender/ bid document/ evaluation of bids/ issue
of APO shall be subject to the jurisdiction of the competent court at the place
from where the NIT/ tender has been issued.
25.2 Where a contractor has not agreed to arbitration, the dispute/ claims arising
out of the Contract/ PO entered with him shall be subject to the jurisdiction of
the competent Court at the place from where Contract/ PO has been issued.
Accordingly, a stipulation shall be made in the contract as under.
This Contract/ PO is subject to jurisdiction of Court at ................. only.
Note:- Mandatory Licensing requirements with regards to security related
concerns issued by the Government of India from time-to-time shall be
strictly followed and appropriate clauses shall be added in all bid documents.
Necessary guidelines in this regard shall be issued separately.
26. General Guidelines:The General guidelines as contained in Chapter 5, 6 and 8 of General
Financial Rules as amended from time to time on works, procurement of
goods and services and contract management respectively may also be
referred to as guiding principles.
*****
Page 79
SECTION 5 Part B
SPECIAL (COMMERCIAL) CONDITIONS OF CONTRACT (SCC)
(To be provided by User cell)
The Special (Commercial) Conditions of Contract (SCC)shall supplement General
(Commercial) Conditions of Contract (GCC)) as contained in Section 5 Part A and
wherever there is a conflict, the provisions herein shall prevail over those in Section
5 Part A i.e. General (Commercial) Conditions of Contract (GCC)
Note: The clauses mentioned below are for reference only. Exact clauses should
be framed as per requirement on case-to-case basis.
1.
Quality Assurance and Testing:

a)
The supply will be accepted only after quality assurance tests are
carried out by the Quality Assurance Wing of BSNL as per prescribed
schedule and material passing the test successfully and after
authenticated excise gate pass issued by Excise Authorities.
b)
The QA units of BSNL while clearing the equipment/ stores will strictly
adhere to the package discipline as described in Purchase Order.
Supplies made in full, as per Purchase Order, of all the packages
during delivery period only will be deemed to have been supplied
within the scheduled delivery period.
Note: Generally equipment (indigenous or imported) upon completion of

TAC/Validation shall have to be supplied after successful testing by Quality
Assurance Wing of BSNL.
2.
Spares:
Note: The clause regarding spares may be included considering the following
aspects:
a) The supplier shall be required to provide a list of spare parts
recommended for maintenance for three years along with rates at card/
module level. The purchaser may elect to purchase the recommended
spares from the supplier at any time including at the end of warranty/
AMC, provided that such purchase shall not relieve the supplier from any
warranty/ AMC obligations under the contract.
b) The cost of spares shall be discounted @ 15% over warranty/ AMC
period (if there is a provision for AMC in the contract) to arrive at the final
price of the equipment for the purpose of tender evaluation.
c) Over a period of three years starting from the date of final acceptance of
the equipment or after the procurement of spares, supplier shall supply
at its own cost, spare parts needed which have not been included in the
offer. These spares should be supplied within a maximum period of
Page 80
thirty days from the notification by the purchaser of its need, without
demur.
d) In the event of termination of production of the equipment/ spare parts,
the supplier shall notify the purchaser at least two years in advance of
the impending termination to enable the purchaser to procure life time
spares. The supplier shall also provide at its own cost to the purchaser,
the blue print drawings and specifications of spare parts if and when
requested.
3.
Loading:
(a) In case any item is not quoted by a Bidder mentioned in the SOR of
the tender document or the price of any item is not available in its own
bid, then the bid shall be loaded by the highest price quoted by any of
the bidders for that item. The loaded item shall be supplied at lowest
cost quoted by any of the bidder.
(b) Cases in which the bidder has quoted for less quantity for any of the
items than that indicated in the SoR of the tender document, then the
price bid shall be loaded to the extent of the difference in quantity of
the item to meet the full requirement of the SoR on a pro-rata basis for
the purpose of evaluation & ordering.
(c) No de-loading of the bid is envisaged, if the quoted quantity in the bid
is higher than that requested in the tender for the purpose of
evaluation.
(d) AMC cost shall not be paid for all items supplied free of cost on
account of the loading. The same principle shall be applied for the
cost towards services and all other items
(e) Offer to the L1 bidder(s) after correcting the arithmetical errors and
effecting change in unit prices due to loading shall not tantamount to
counter offer. If not accepted by the bidder, then he/ she shall be
liable to be barred from participating in future tenders/ EOIs/ RFPs of
BSNL for a period of two years.
Page 81
Section 5 Part C
General Conditions of AMC
1.
Period of Warranty & AMC (if any) shall be prescribed
2.
Repair of faulty equipment and setting up of Repair Facilities:
Note: The clause regarding repair of faulty equipment and setting up of Repair
Facilities may be included considering the following aspects:
a) The supplier shall establish adequate repair facilities for repair of faulty
equipment in India within a period six months from the date of purchase
order. The number and location of repair facilities should be such as to
meet the requirement of repairs and turn-around time provided in the
special conditions in Section-5 Part B. The performance bank guarantee
shall not be released until the purchaser is satisfied that sufficient repair
facilities have been established in addition to the fulfillment of other
conditions of the contract. The purchaser reserves the right to blacklist a
supplier who does not meet the repair obligation as per the conditions of
contract.
b) The supplier shall quote rates for repair of each card/ module in
Section-9 Part II as a percentage of the cost of that module and also in
value in rupees. Total cost of repair for each type of module shall be
loaded for the purpose of evaluation.
3.
Annual Maintenance Contract (AMC):

a) AMC shall come into effect after completion of warranty period and
shall remain valid for ____ years. Warranty of equipment/ Units/
terminals shall start from the date of acceptance by the consignee of
the last batch of equipment/Units/terminals in the Circle.
b) Terms and conditions of AMC shall be applicable during Warranty
period including imposition of penalties except that no charges for
services provided under Warranty/ extended warranty shall be payable.
Amount for penalties will be deducted from the pending payments
against supplies or if that amount is insufficient then by invoking the
PBG available against supply or AMC or from the charges due for
AMC.
c) It shall be mandatory for the bidders to undertake the Annual
maintenance contract for ____ years to be signed at the time of
acceptance of APO for entire quantity proposed to be ordered. The
selected bidder has to submit a signed copy of the AMC agreement
along with the A.P.O.
d) For this purpose the bidder shall quote all inclusive Comprehensive
AMC charges for each year. However, service tax shall be paid extra
Page 82
e)
f)
g)
h)
i)
j)
k)
as applicable. AMC charges shall be included in evaluation of price

bid, by applying a discounted rate of 12% per year to arrive at the NPV
(Net Present Value). The quote for AMC should be as a % (percent) of
equipment cost(excluding duties and taxes CENVAT-able i.e. net cost
to BSNL) and it is mandatory to quote yearly charge in Rs. in a column
in Section-9 of tender document. The concerned User cell should
specify the minimum charge in percentage for AMC for evaluation
purpose.
The bidder shall establish at least one Nodal Repair Center in the
country or each region/circle of BSNL within a period of 4 months (from
the date of placement of PO) or as defined in the bid document, where
their equipment is allotted for supply to keep the turn around time for
repair of faulty terminals/units to minimum.
The supplier shall provide the list of Nodal Repair Center and
designated Courier service/ agency with their addresses/ Tel. No./ Fax.
No./ E-Mail etc. within 4 months from date of placement of P. O.
The supplier (including designated courier service/ agency) shall
accept all the faulty equipment/ terminals/ units for repair or
replacement within prescribed turnaround time.
The bidder shall submit a performance bank guarantee towards
fulfillment of obligations under AMC, in each Circle equivalent to 2% of
the cost of equipment as per P.O. or the first year AMC charge
pertaining to that Circle whichever is higher, in a prescribed proforma.
The PBG shall be submitted at least two months in advance of date of
start of AMC. The PBG shall be valid for a period of______ years to
cover one year or as specified over and above the _____ years AMC
period. The PBG shall be extendable for a further period as required if
there is any delay in start of AMC for any reason. For the additional
equipment, the amount of PBG shall be increased at the same rate as
indicated above, within a time period of one month of the date of such
equipment getting covered under AMC.
The Performance Bank Guarantee against the P.O. will be released
only after submission of PBG against AMC in each Circle and fulfillment
of other obligations of AMC or P.O. which are pre-requisite for release
of the PBG.
For the services rendered during the half-year, the payment shall be
made at the end of each half year at circle office, normally within a
period of 21 days from the date of submission of bills duly certified by
the concerned unit.
In case the supplier fails to repair the faulty equipments/ terminal/ units
and deliver the repaired one in the concerned BSNL office within
stipulated turnaround time of ____ days, it shall be liable to pay penalty
at the rate as defined in the bid document Rs. ______ per equipment/
Page 83
l)
m)
n)
PCB/ Assembly/ Sub-assembly/Terminal/ unit per day/ week or part

thereof for the entire period counted from the date of making over the
faulty equipment/ Units by BSNL to suppliers/ designated courier to the
actual date of delivery of repaired Units including Saturday, Sunday
and holidays. Capping on penalty will be 25% of the AMC value for the
corresponding period or as decided on case-to-case basis of the AMC
value for that period.
Any Unit neither returned during the turnaround time period nor
declared as RNP (Repair Not Possible) within 60 days of its handing
over to the designated courier/ agency/ center, an amount equivalent to
1.5 times the cost of equipment/ unit shall be levied from the supplier.
This cost will not be counted as penalty, for the purpose of 25% cap on
penalty as mentioned in above Para.
Not more than 1% of the total equipment/ units sent in an year (of AMC)
for repair will be declared as RNP (Repair Not Possible) by the supplier.
BSNL shall reimburse up to a maximum of 1% of the cost of equipment
sent for repair against replacement cost of equipment declared as
RNP.
The consumables should not be part of AMC except the large capacity
batteries supplied if any, with the BSCs/ BTSs etc. in WLL tenders in
future. However, if BSNL so desires, the supplier shall be bound to
provide these items at the itemized price in their bids for initial currency
period of AMC.
Note:-The aforesaid clauses are to be incorporated in Procurement Manual as a

guiding factor for AMC and aimed to achieve smooth and proper working of
the equipment during its predicted life span with practical workable approach
without increasing the cost considerably. The terms and conditions may
undergo change as per requirement of the procurement. The concerned
User Cell of Corporate Office and relevant wings of field units of BSNL
preparing tender conditions should also include the agreement for
Comprehensive Annual Maintenance Contract detailing the post warranty
and within warranty period maintenance obligations as well as scope of
work. The riders mentioned in sub-clauses (v), (vi), (viii), (xii) and (xiii)
respectively for 4 months, 4 months, six years, 60 days and 1% may undergo
suitable change as justified with the approval of competent authority.
Other clauses may be defined as per the need e.g.
(1)
Specific payment terms for payment of equipment including
installation, services, AMC/ARC etc. if any (Apart from clause 11of
Section 5 Part A)
(2)
AMC is mandatory or optional on need basis.
(3)
Optional items for BSNL/Optional items for vendors and its treatment
for the purpose of financial evaluation.
Page 84
(4)
The actual payment conditions for new products or procurement

having installation and AMC services may be decided on case to case
basis and incorporated in special conditions of contract.
***
Page 85
SECTION-6
UNDERTAKING & DECLARATION
6(A) - For understanding the terms & condition of Tender & Spec. of work
a)
b)
Certified that:
1.
I/ We . have read, understood and

agree with all the terms and conditions, specifications included in the
tender documents & offer to execute the work at the rates quoted by
us in the tender form.
2.
If I/ We fail to enter into the agreement & commence the work in time,
the EMD/ SD deposited by us will stand forfeited to the BSNL.
The tenderer hereby covenants and declares that:

1.
All the information, Documents, Photo copies of the Documents/

Certificates enclosed along with the Tender offer are correct.
2.
If anything is found false and/or incorrect and/or reveals any

suppression of fact at any time, BSNL reserves the right to debar our
tender offer/ cancel the LOA/ Purchase/ work order if issued and
forfeit the EMD/ SD/ Bill amount pending with BSNL. In addition,
BSNL may debar the contractor from participation in its future
tenders.
Date:
Signature of Tenderer
Place:
Name of Tenderer .
Along with date & Seal
Page 86
6 (B) NEAR-RELATIONSHIP CERTIFICATE:

(Format of the Certificate to be given as per the clause 34.4 of Section-4 Part-A by
the bidder in respect of status of employment of his/ her near relation in BSNL)
The
format
of
the
certificate
to
be
given
is
"I..s/o.r/o..hereby certify that none of my relative(s) as
defined in the tender document is/are employed in BSNL unit as per details given in
tender document. In case at any stage, it is found that the information given by me
is false/ incorrect, BSNL shall have the absolute right to take any action as deemed
fit/without any prior intimation to me."
Signature of the tenderer

With date and seal
Page 87
SECTION- 7
PROFORMAS
7(A)
For the BIDSECURITY/ EMD Guarantee

(To be typed on Rs.100/- non-judicial stamp paper)
Sub: Bid Security/EMD guarantee.

Whereas
M/s
R/o (Hereafter referred

to as Bidder) has approached us for giving Bank Guarantee of
Rs. /- (hereafter known as the B. G. Amount) valid up
to ..// 20.. (hereafter known as the Validity date) in favour of DGM (MMT)
BSNL CO, Delhi (Hereafter referred to as BSNC) for participation in the tender of
work
of
..
vide
tender
no. .
Now at the request of the Bidder, We
Bank
Branch
having . .
.
(Address)
and
Regd.
office
address
as ...
(Hereinafter called the Bank) agrees to give this
guarantee as hereinafter contained:
2.
We the Bank do hereby undertake to pay the amounts due and payable under
this guarantee without any demur, merely on a demand from the BSNC stating
that the amount claimed is due by way of loss or damage caused to or would
be caused to or suffered by the BSNC by reason of breach by the said
bidder(s) of any of terms or conditions contained in the said Agreement or by
reason of the bidder (s) failure to perform the said Agreement. Any such
demand made on the bank shall be conclusive as regards the amount due and
payable by the Bank under this guarantee where the decision of the BSNC in
these counts shall be final and binding on the bank. However, our liability
under this guarantee shall be restricted to an amount not exceeding the B. G.
Amount.
3.
We undertake to pay to the BSNC any money so demanded notwithstanding

any dispute or disputes raised by the bidder(s) in any suit or proceeding before
any court or tribunal relating thereto our liability under this present being
absolute and unequivocal. The Payment so made by us under this bond shall
be valid discharge of our liability for payment there under and the bidder(s)
shall have no claim against us for making such payment.
4.
We the Bank further agree that the guarantee herein contained shall remain in
Page 88
full force and effect during the period that would be taken for the performance
of the said agreement and that it shall continue to be enforceable till all the
dues of the BSNC under or by virtue of the said Agreement have been fully
paid and its claims satisfied or discharged or till BSNC Certifies that the terms
and conditions of the said Agreement have been fully and properly carried out
by the said bidder(s) and accordingly discharge this guarantee. Unless a
demand or claim under this guarantee is made on us in writing or before the
expiry of Validity date from the date hereof, we shall be discharged from all
liability under this guarantee thereafter.
5.
We the Bank further agree with the BSNC that the BSNC shall have the fullest
liberty without our consent and without affecting in any manner our obligations
hereunder to vary any of the terms and conditions of the said Agreement or to
extend time of performance by the said bidder(s) from time to time or to
postpone for any time or from time to time any of the powers exercisable by
the BSNC against the said bidder(s) and to forbear or enforce any of the terms
and conditions relating to the said agreement and we shall not be relieved
from our liability by reason of any such variation, or extension being granted to
the said Bidder(s) or for any forbearance, act or omission on the part of the
BSNC or any indulgence by the BSNC to the said bidder(s) or by any such
matter or thing whatsoever which under the law relating to sureties would, but
for this provision, have effect of so relieving us.
6.
Notwithstanding anything herein contained ;

(a) The liability of the Bank under this guarantee is restricted to the B. G.
Amount and it will remain in force up to its Validity date specified above.
(b) The guarantee shall stand completely discharged and all rights of the
BSNC under this Guarantee shall be extinguished if no claim or demand
is made on us in writing on or before its validity date.
7.
In case BSNC demands for any money under this bank guarantee, the same
shall be paid through bankers Cheque in favour of AO (Cash) BSNL CO
payable at New Delhi.
The Bank guarantees that the below mentioned officer who have signed it on
behalf of the Bank have authority to give this guarantee under its delegated
power.
8.
Place:
Date: ..
(Signature of the Bank Officer)
Rubber stamp of the bank
Authorized Power of Attorney Number: .
Name of the Bank officer: ..
Designation:
Complete Postal address of Bank:
Telephone Numbers ..
Fax numbers
Page 89
7(B)
For the Performance Guarantee

(To be typed on Rs.100/- non-judicial stamp paper)
Dated:..
Sub: Performance guarantee.

Whereas
DGM
(MM)
BSNL
CO,
Delhi
R/o .. ..(hereafter referred to as
BSNC) has issued an APO no.
... Dated //20..
awarding the work of .. to
M/s
..
R/o (hereafter referred to
as Bidder) and BSNC has asked him to submit a performance guarantee in favour
of DGM(MMT) BSNL CO, Delhi of Rs. ../- (hereafter referred to as
P.G. Amount) valid up to //20(hereafter referred to as Validity
Date)
Now at the request of the Bidder, We
Bank
Branch
having .. . .
.
(Address)
and
Regd.
office
address
as ...
(Hereinafter called the Bank) agreed to give this
guarantee as hereinafter contained:
2.
We, the Bank do hereby undertake and assure to the BSNC that if in the
opinion of the BSNC, the Bidder has in any way failed to observe or perform
the terms and conditions of the said agreement or has committed any breach
of its obligations there-under, the Bank shall on demand and without any
objection or demur pay to the BSNC the said sum limited to P.G. Amount or
such lesser amount as BSNC may demand without requiring BSNC to have
recourse to any legal remedy that may be available to it to compel the Bank
to pay the same.
3.
Any such demand from the BSNC shall be conclusive as regards the liability
of Bidder to pay to BSNC or as regards the amount payable by the Bank
under this guarantee. The Bank shall not be entitled to withhold payment on
the ground that the Bidder had disputed its liability to pay or has disputed the
quantum of the amount or that any arbitration proceeding or legal proceeding
is pending between Bidder and BSNC regarding the claim.
4.
We, the Bank further agree that the guarantee shall come into force from the
date of its issue and shall remain in full force and effect up to its Validity date.
Page 90
5.
6.
The Bank further agrees that the BSNC shall have the fullest liberty without
the consent of the Bank and without affecting in any way the obligations
hereunder to vary any of the terms and conditions of the said agreement or
to extend the time for performance of the said agreement from any of the
powers exercisable by BSNC against the Bidder and to forebear to enforce
any of the terms and conditions relating to the said agreement and the Bank
shall not be relieved from its liability by reason of such failure or extension
being granted to Bidder or through any forbearance, act or omission on the
part of BSNC or any indulgence by BSNC to Bidder or any other matter or
thing whatsoever which under the law relating to sureties would but for this
provision have the effect of relieving or discharging the guarantor.
Notwithstanding anything herein contained ;
(a)
The liability of the Bank under this guarantee is restricted to the P.G.
Amount and it will remain in force up to its Validity date.
(b)
7.
8.
The guarantee shall stand completely discharged and all rights of the
BSNC under this Guarantee shall be extinguished if no claim or
demand is made on us in writing on or before its validity date.
In case BSNC demands for any money under this bank guarantee, the same
shall be paid through bankers Cheque in favour of AO (Cash) BSNL CO
payable at New Delhi.
The Bank guarantees that the below mentioned officer who have signed it on
behalf of the Bank have authority to give this guarantee under its delegated
power.
Place:
Date: ..
(Signature of the Bank Officer)
Rubber stamp of the bank

Authorized Power of Attorney Number: .
Name of the Bank officer: ..
Designation:
Complete Postal address of Bank:
Telephone Numbers ..
Fax numbers
Page 91
7 (C) For Letter of Authorization for attending Bid Opening Event.

(To be typed preferably on letter head of the company)
Subject: Authorization for attending Bid opening
I/ We Mr. /Ms. .. have submitted our bid for

the
tender
no.
.
in
respect
of .. (Item of
work) which is due to open on . (date) in the Meeting Room,
O/o .
We hereby authorize Mr. / Ms. & Mr. /

Ms. (alternative) whose signatures are attested below, to
attend the bid opening for the tender mentioned above on our behalf.
.
Signature of the Representative
Signature of Bidder/ Officer authorized to sign

Name of the Representative
on behalf of the Bidder
.
Signature of the alternative Representative
..
Name of the alternative Representative
Above Signatures Attested
Note 1: Only one representative will be permitted to attend the Bid opening
2. Permission for entry to the hall where bids are opened may be refused in
case authorization as prescribed above is not received.
Page 92
7(D)
Model Amendment Letter Intimating Conditions for Extension of

Delivery Period
(Refer to Appendix (i) to clause 15.3 of Section-5 Part A)
Registered A Due
Address of the purchaser

--------------------------------------------------------------To
M/s ..
Sub: This office contract no.. dated . placed on you for supply
of .
Ref :Your letter no dated .

We are in receipt of your letter, wherein you have asked for extension/ further
extension of time for delivery/ execution/ installation/ commissioning.
In view of the circumstances stated in your above referred letter, the time of delivery
can be extended from _______ (original/ last delivery period) to ____________
(presently agreed delivery period) subject to your unconditional acceptance of the
following terms and conditions:
1.
That, liquidated damages shall be levied in accordance with agreed clause

16.2 & 16.3 Section-5 Part A of terms and conditions of the tender/ PO.
2.
That, notwithstanding any stipulation in the contract for increase in price on

any ground, no such increase, whatsoever, which takes place after current
last date of Delivery shall be admissible on such of the said goods as are
delivered after the said date as per clause 12 Section-5 Part A.
That, the prices during this extended delivery period shall be provisional and
shall be governed as per agreed clauses 12 and 24 of Section 5 Part A and
shall be finalized in accordance with the current PO price or the current PO
price with latest budget/ duty impact or the prices in the new tender (T.E.
no. ..) from the date of its opening, on whichever is lower basis.
3.
4.
An additional BG of Rs._____in accordance with clause 15.3, Section5PartA of the contract with validity up to _______.
Page 93
5.
An undertaking as required vide clause 24.3, Section-5A. Otherwise furnish

the details as requisite in clause 24.4 section 5 Part A
Please intimate your acceptance of this letter alongwith the additional BG within ten
days of the issue of this letter failing which the contract will be cancelled at your risk
and expense without any further reference to you. This letter shall form part and
parcel of the agreement/ contract/ APO/ PO and all other terms & conditions of the
contract remain unaltered.
Yours faithfully,
()
for and on behalf of..
Note : The entries which are not applicable for the case under consideration are to
be deleted.
Page 94
7(E)- Model Amendment Letter for Extension of Delivery Period

Appendix (ii) to clause 15.3 of Section-5 Part A
Registered Acknowledgement Due
Address of the purchaser

--------------------------------------------------------------To
M/s ..
Sub : This office contract no.. dated . placed on you for supply
of
Ref : 1.
Your letter no
requesting DP extension
dated
2.
This office letter no. dated intimating conditions for

DP extension
3.
Your letter no.. dated . accepting the conditions

for DP extension
In your above letter under reference (1), you have asked for extension/ further
extension of time for delivery/ execution/ installation/ commissioning. The terms
and conditions for extension of delivery period were conveyed to you vide this office
letter under reference (2).
In view of the circumstances stated in your above referred letter, and upon your
unconditional acceptance of the terms and conditions of this extension vide your
letter under reference (3), the time of delivery is hereby extended from _______
(last delivery period) to ____________ (presently agreed delivery period) on the
terms and conditions in letter under reference (2) above and agreed by you vide
letter under reference (3) i.e.:
(a)
Liquidated damages shall be levied in accordance with agreed clause 16.2 &
16.3 Section-5 Part A of terms and conditions of the tender/ PO.
(b)
Notwithstanding any stipulation in the contract for increase in price on any

ground, no such increase, whatsoever, which takes place after current last
Page 95
date of Delivery/ completion of work shall be admissible on such of the said

goods as are delivered after the said date as per clause 12 Section- 5 Part A.
(c)
The prices during this extended delivery period shall be governed as per
clauses 12 and 24 of Section-5 Part A and shall be finalized in accordance
with current PO price or the current PO price with latest budget/ duty impact
or the prices in the new tender (T.E. no. ..) from the date of its opening,
on whichever is lower basis.
The letters under reference above and this letter shall form part and parcel of
agreement/ contract/ APO/ PO and all other terms & conditions of the contract
remain unaltered.
Yours faithfully,
()
for and on behalf of..
Copy to :
..
..
..
(All concerned)
Note:- The entries which are not applicable for the case under consideration are to
be deleted.
Page 96
SECTION- 8
Tenderer / Bidders Profile & Questionnaire
(To be filled in and submitted by the bidder)
Tenderers Profile
Name of the Individual/ Firm:
A)
1.
2.
Present
Correspondence
Address
..
..
..
Telephone No. .. Mobile No. ...
FAX No.
3.
Address of place of Works/

Manufacture ...
.
Telephone No. .... Mobile No.
4.
State the Type of Firm:

(Tick the correct choice):
5.
Name of the sole proprietor/ partners/ Director(s) of Pvt. Ltd Co.:

S. No.
Name
Sole proprietor-ship/partnership firm /

Private limited company.
Fathers Name
Designation
1.
2.
3.
4.
5.
6.
Name of the person authorized to enter into and execute contract/

agreement and the capacity in which he is authorized (in case of
partnership/ private Ltd company):
..
.
7.
Permanent Account No. :
Page 97
8.
Details of the Bidders Bank for effecting e-payments:

(a) Beneficiary Bank Name:
(b) Beneficiary branch Name:.
(c) IFSC code of beneficiary Branch..
(d) Beneficiary account No.:.
(e) Branch Serial No. (MICR No.):...
Whether the firm has Office/ works (i.e. manufacture of the tendered item)
in Delhi? If so state its Address
9.
B)
Questionnaire
1.
Do you think any other detail/ material is required to complete the work
specified in the specification? Yes/ No.
1.1 If Yes, Give details
2.
Do you think any other item of work need be included in tender form to
complete the work specified in the specification? Yes/ No.
2.1
If Yes, Give details
3. Kindly indicate the maximum Quantity of tendered material which you are
capable of supplying within the scheduled delivery period.
Name of the tendered Item
Qty that can be supplied by the firm

within scheduled delivery period.
4. Suggestion for improvement of the tender document.

.
.
.
Place.
Signature of contractor
Date .
Name of Contractor
Page 98
SECTION-9 Part-A
BID FORM
To
From,
<complete address of the purchaser><complete address of the Bidder>

.
Bidders Reference No:.... Dated.
Ref: Your Tender Enquiry No. dated
1.
2.
3.
4.
5.
6.
7.
Having examined the above mentioned tender enquiry document including

amendment/
clarification/
addenda
Nos.
......................
dated .. the receipt of which is hereby duly
acknowledged, we, the undersigned, offer to supply
and
deliver .............................................. in conformity with the said drawings,
conditions of contract and specifications for the sum shown in the schedule
of prices attached herewith and made part of the financial Bid.
Bid submitted by us is properly sealed and prepared so as to prevent any
subsequent alteration and replacement.
We agree to abide by this Bid for a period of .days from the date fixed
for Bid opening or for subsequently extended period, if any, agreed to by us.
This bid shall remain binding upon us up to the aforesaid period.
We understand that you are not bound to accept the lowest or any bid, you
may receive.
If our Bid is accepted, we will provide you with a performance guarantee from
a Scheduled Bank for a sum @ 5% of the contract value for the due
performance of the contract.
If our Bid is accepted, we undertake to complete delivery of all the items and
perform all the services specified in the contract in accordance with the
delivery schedule specified in the Section-2 (Tender Information).
Until a formal Purchase Order of Contract is prepared and executed, this Bid
together with your written acceptance thereof in your notification of award
shall constitute a binding contract between us.
Page 99
Dated: ....... day of ................... 20
Signature .
Witness
Name ..
Signature.
In the capacity of .
Name ..
Duly authorized to sign the bid for and on
Address ......................................
behalf of ..............................................
Page 100
SECTION-9 Part-B
15
16
17
18
19
20
Customs Tariff Head
14
Percentage (%) of Customs duty
13
Import content
12
E.D. Tariff Head
11
Total discounted price excluding Duties &

Taxes CENVAT-able
(15-16)
Amt
10
Duties & Taxes CENVAT-able on unit price
%
9
Amt
8
Discount offered,
if any
%
7
Total Price Inclusive of all levies & charges

excluding Duties & Taxes
(3X14)
Amt
6
F.F. Pkg
&I
Unit Price excluding Duties & Taxes CENVAT

able
(12-13)
Sales Tax
Unit Price (all inclusive

(4+6+8+10+11)
Excise
Duty
Other levies & charges, if any
Ex-factory Price (Basic Unit Price exclusive of

all levies & charges)
Sl.
No.
Total Qty..
Item description
Part I - Price Schedule for Indigenous Equipment
21
Note :
1. We hereby declare that in quoting the above prices, we have taken into account the entire credit on inputs available under the MODVAT
SCHEME introduced w.e.f. 1st March 1986 and further extended on more items till date.
2. If Annual maintenance Contract charges are required to be quoted as per SOR, basic charges should be shown in column-4 & the service
tax in column 11 & 13.
3. We hereby certify that E.D/Customs Tariff Head shown in column 18/21 are correct & CENVAT Credit for the amount shown in column 13
above are admissible as per CENVAT Credit Rules 2004.
4. The bidder shall quote separately for hardware and software as per special conditions of contract.
5. The bidder submitted the offer with concessional E.D/sales tax shall submit the proof of applicable concessional ED/Sales Tax.
Page 101
10
11
12
13
15
16
17
Customs Tariff Head
14
Total discounted price excluding Duties

& Taxes CENVAT-able
(15-16)
Amt
Discount offered, if any
Amt
Duties & Taxes CENVAT-able on unit

price
Price per Unit for site (all inclusive)

(4B+6+8+10+11)
4B
Amt
Pkg & Inland

freight
Other levies & charges, if any
4A
Sales Tax
Total Price Inclusive of all levies &

charges excluding Duties & Taxes
(3X14)
Custom Duty
Unit Price excluding Duties & Taxes

CENVAT able
(12-13)
Unit price per Unit CIF
Ex-factory Price (Basic Unit Price

exclusive of all levies & charges)
Sl.
No.
Total Qty.
Item description
Part II - Price Schedule for Imported Equipment
18
Note :
1. We hereby declare that in quoting the above prices, we have taken into account the entire credit on inputs available under the
MODVAT SCHEME introduced w.e.f. 1st March 1986 and further extended on more items till date.
2. If Annual maintenance Contract charges are required to be quoted as per SOR, basic charges should be shown in column-4B
& the service tax in column 11 & 13.
3. We hereby certify that E.D/Customs Tariff Head shown in column 18 are correct & CENVAT Credit for the amount shown in
column 13 above are admissible as per CENVAT Credit Rules 2004.
4. The bidder shall quote separately for hardware and software as per special conditions of contract.
5. The bidder submitted the offer with concessional E.D/sales tax shall submit the proof of applicable concessional ED/Sales Tax
Page 102
CHAPTER - 5
5.
BID BOND GAURANTEE OR EARNEST MONEY DEPOSIT (EMD)
5.1
Purpose
The Bid Bond Guarantee also known as Earnest Money Deposit (EMD) or
Earnest Money Bank Guarantee (EMBG).The purpose of EMD is to get a
commitment by the Bidder to honour its bid during the bid validity period.
5.2
Value
The value of EMD will be @ 2% of the total estimated cost of the equipment/
stores including services proposed to be procured in the tender subject to a
maximum of Rupees Two Crore.
5.3
Validity Period
The validity period of the EMBG should be 30 days beyond the Bid validity i.e.
n+ 30 days, where n is number of days in validity period of offer e.g. 150 +30
= 180 days, if the bid validity period is 150 days.
5.4
Extension of Validity Period

In case, where BSNL finds that it is not able to place Advance Purchase
Order within the validity period of the bid, BSNL can request all bidders to
extend the validity of their respective bids and the EMBGs by a reasonable
period. In such cases, extension of validity of Bid Security Bond by 30 days
beyond the extended validity date of bids should also be asked for. While
BSNL can make the request for extension, the bidder is free to either extend
the validity or refuse the request to extend the Validity.
5.5
Release of EMD
5.5.1 EMD of all unsuccessful Bidders should be released on placement of
Purchase Order (PO) on the successful bidders. This should be done within
one week of release of Purchase Order(s).
5.5.2 In case of successful Bidders, the EMBG shall be released on receipt of their
acceptance of Advance Purchase Order and furnishing the performance
security.
5.5.3 Where BSNL requests the Bidder to extend the validity of the Bid beyond the
stipulated period given in the Bid documents, and the bidder refuses to
extend the validity of its bid, the EMD of such Bidders shall be returned
forthwith. In such cases, the bidder shall not be considered for further
evaluation or ordering.
Page 103
5.6
Encashment of EMD
5.6.1 EMD of a bidder shall be forfeited, if the bidder withdraws or amends its bid
or impairs or derogates from the bid in any respect during the period of bid
validity specified by the bidder on the Bid Form or extended subsequently.
5.6.2 When BSNL places an Advance Purchase Order on the successful bidder on
its quoted price and the bidder refuses to accept it within the scheduled
period as stated in APO, EMD shall be forfeited.
5.6.3 The decision of BSNL in this regard will be final & binding.
5.7
Acceptable forms of EMD

The EMD should be in the form of a Bank Guarantee drawn from a scheduled
bank in favour of BSNL. EMD in the form of Account Payee Demand Draft,
Fixed Deposit Receipt or Bankers Cheque, safeguarding the purchasers
interest in all respects, shall also be acceptable. However, no interest shall
be payable on EMD received in form of DD/ bankers cheque.
5.8
Proforma for EMBG

A Proforma for obtaining EMBG is provided at Section-7 (A) of Chapter 4
(Standard Tender Enquiry Document).
5.9
Verification of the EMBG

EMBG submitted by the bidders must be immediately verified from the
issuing Bank before acceptance.
5.10
Encashme
nt where
Resorted
Returned
to the
Bidder
Extended
Extension
asked for
Valid up to
Of Opening
EMBG Register
A record of all EMBGs should be kept in EMBG Register in standard format
given below. The register should be scrutinized monthly to ensure currency
of validity of Bids, extensions asked and acceded by Bidders, Bid encashed,
Bid refunded etc.
Name
Bid
Amount Name of
Date
of the
Bond/
of Bid
the
Bidder
EMBG
Bond
Banker
Number
***
Page 104
CHAPTER - 6
6
OPENING OF BIDS
6.1
Opening of bids
The guidelines for conducting the opening of bids and the various steps to
be taken by the tender opening committee are given in this chapter. The bid
opening is an important occasion when all the bidders, who have participated
in the tender, assemble, their bids opened formally in their presence and
certain information are read out in this open session. Proper bid opening
procedure ensures an impartial and fair approach to all bidders so that
complaints on this account do not arise. The various steps to ensure these
are now described.
6.2
Formation of Bid opening committee
6.2.1 Since bid opening is an important responsibility, it is necessary that a bid
opening team be formed formally. It is recommended that composition of the
bid opening team be as follows :
Chairman of the Bid Other members of the bid opening committee
opening Committee
Divisional Engr. or Asstt. Engineer or equivalent+ Accounts officer+
Equivalent
One Dealing Asstt.
Note:-However, in case of SSAs headed TDEs, the TOC shall be headed by SDE
Level officer and member from finance will be of AO/JAO level.
6.2.2 Proposal for formation of bid opening committee would be approved by the
DGM in-charge of the tendering, well in advance of the bid opening. Any
change in the constitution of the Committee would need the approval of GM
in-charge of the tendering. The officer nominated for the bid opening shall be
preferably different from the officers who have to process the procurement
case.
6.3
Preparations by the Bid Opening Committee.

The Bid Opening committee should equip itself adequately in advance, to
enable it to carry out its function efficiently during bid opening. These
advance preparation would comprise of the following :
a)
Preparing Attendance Register for recording attendance of Bidders.
b)
Taking list of bidders who have purchased the bid documents from
Tendering section.
c)
Providing adequate number of persons for shifting the documents
from the point of acceptance to the bid opening venue.
d)
Ensuring security at the bid opening venue.
e)
Making adequate arrangements for issue of passes to enable smooth
Page 105
f)
g)
h)
i)
j)
entry of the bidders to the bid opening venue.

Ensuring provision of public address system to enable the bidders to
hear information being read out.
Making suitable sealing arrangements
Making suitable arrangement for receipt, recording and stocking of the
documents.
Preparing formats in advance for recording information to be read out
at the time of opening of Bids and preparing its minutes.
Preparing direction pointers, notice etc. for display at prominent
location to guide bidders to Bid Opening venue.
6.4
Venue
The Bid Opening would generally be conducted in a hall, which can
accommodate comfortably, BSNL officers forming the Bid opening Team as
well as bidders, who participate in the tender. The venue should preferably
have an ante-room where the authorization letter & number verified before
the bidders are formally allowed entry into the bid opening hall.
6.5
Essential Requirements to enable a Bidder to Participate in Bid

Opening
The participation of bidders in bid opening would be restricted to those
Bidder, who fulfill all the following conditions:
a) Representative of Bidders, who have been authorized in writing by their
principals to participate in the bid opening and possess such letters of
authorization in original.
b) Bidders who claim to have submitted their bids subject to limit of 2
persons per firm.
c)
Bidders who have either purchased the bid document or claim to have
downloaded the bid documents from BSNL site.
Those, who do not meet the above conditions would be deemed to be
unauthorized and would not be allowed to enter the Bid Opening Venue and
participate in the bid opening.
6.6
Bid Opening Process
6.6.1 The Bid opening process should start at the time/date given in the NIT. The
bidder would be asked to enter the ante room first, produce their letters of
authorization to enable them to participate in the bid opening. Suitable
entries shall be made in the Attendance Register along with the signature of
the authorized participating bidders.
6.6.2 For the bidders who submit their bids earlier to the date of bid opening, bids
having letter of authorization for submission of the bids and the bids
themselves being submitted as required by the bid documents, would be
accepted by the Section Officer(MMT), Tendering section and a receipt to
Page 106
this effect issued by him to the bidder. In case such bidders wish to
participate in the Bid Opening, the production of this receipt along with the
authorization for the participation in the bid would enable the Bid Opening
Officer to issue a pass to the Bidders to enable him to participate. In such
cases, it is the responsibility of the Bid Opening Officer to ensure that such
bids are available, suitably numbered, at the Bid Opening Venue at the time
of Bid Opening. Any bids submitted after the due time as per NIT would be
returned unopened by the Bid Opening Officer.
6.6.3 In case of e-tendering please refer Section 4 Part C of Chapter 4.
6.7
Information to be read out in Bid Opening for Manual Bidding process.
6.7.1 Kindly follow instructions stated in clause 19.3 of section4PartA (General
Instructions to Bidders).
6.7.1 The Bid Opening Official should politely and firmly turn down queries of any
other nature from any bidder. No argument should be entertained on this
account by the Bid Opening Officer.
6.7.2 Actual process of Opening of Bids should start only after all the received bids
shifted to the Bid Opening Hall under supervision and responsibility of Bid
Opening Officer. All the received bids should be arranged in alphabetical
order as per the name of the firm submitting the bids & thereafter numerically
counted & numbered viz.1/n,2/n.n/n where n is the no. of total bids
received in the tender, entered in the Bid Opening Register. Where the
response to the tender is very extensive, the Bid opening Officer may restrict
entry to the venue to only one representative per bidder.
6.7.3 At the start of the Bid Opening and prior to opening the first bid, the Bid
Opening officer should clearly state the information which will be read out by
him.
6.7.4 Bids should be opened in the numerical numbering. The Bid Opening Officer
should display the intactness of the seal of the bid being opened, prior to
opening it, to all the participants, record this and initial this entry and should
thereafter open the Bid. He should check up and ensure that the original bid
its mode of submission are as per the Bid Documents. After opening the
Bids, he should read out the information as given in clause 19.3(iii &iv) of
Section4 Part A (GIB) from the original copy of the bid, record the information
read out in the appropriate format, encircle the entries in the Bid in red ink
and initial these in the Bid before proceeding to the next item of the Tender.
6.7.5 The bid opening committee shall record in its report itself if bid security is not
submitted as per clause 12.1 & 12.3 of Section-4 Part A of the Bid Document
or bid validity is less than the time prescribed in clause 13.1, Section-4 Part A
of the Bid Document.
6.7.6 In case of e-tendering process please refer Section 4 Part C of Chapter 4.
Page 107
6.8
Report of the Bid opening Committee
6.8.1 In all cases, it should be ensured that the bid opening is completed on the
same calendar day. The bid opening committee would be responsible for
preparation of its report on the same day of the bid opening or maximum the
next day to the bid opening, in case the bid opening drags on well beyond the
closing hours of the office.
6.8.2 The bid opening reports should comprise of the following :
a) List of participants who attended the bid opening.
b) Report on the bid opening duly prepared by the bid opening official and
signed by him along with other members of the bid opening team
certifying that only those bidders who were eligible to participate, were
allowed to participate.
c) Information regarding item read out.
d) Submission of Bid documents, bidder-wise were as per Bid conditions to
be indicated.
e) Statement that all steps taken to preserve the sanctity of the Bids.
f) Certificate regarding proper storage of Bids, after the Bid opening, in
secured area.
6.8.3 Submission of Bid Opening Report
The Bid Opening Committee should submit the report of the Bid Opening,
duly signed by all members of the Bid Opening Committee to the Director in
charge of tendering for information, record and follow up action.
6.9
Making Over of Bids
6.9.1 The Bid Opening Committee should make over the complete set of the bids
along with the report of the bid opening and other documents after the
opening of the bids to all the members of the Committee for Evaluation of
Tender (CET).
6.9.2 In case of e-tendering the CET members should be authorized for online
access of bids subsequent to the closing of Tender Opening Event.
***
Page 108
CHAPTER - 7
7 FORMATION OF COMMITTEE FOR EVALUTION OF TENDER/ EOI (CET)
7.1
Formation of Committees for Evaluation of Tender
7.1.1 Tenders are evaluated by a Committee called Committee for Evaluation of
Tender. Its formation and constitution is covered in this chapter. The
Committee for Evaluation of Tender (CET) is constituted for the evaluation of
each and every tender. This duly constituted CET evaluates the tender as
per the terms and conditions and other clauses stipulated in the tender
document. The Committee submits its recommendations in the form of a
report. This report is thereafter examined by the procurement branch of the
BSNL. The proposals emerging out of the recommendations of the
Committee for Evaluation of Tender are submitted to the competent authority
for approval.
7.1.2 Each tender is evaluated by a Committee for Evaluation of Tender set up for
this purpose. The formation of the Committee is proposed by the MM branch
and approved by the concerned Director of BSNL Board. In case of tenders
issued by field units, the CET would be approved by the tender approving
authority. Formation of the CET should be done well in advance of the
opening of the Bids.
7.2 Constitution of CET
7.2.1 A Committee for Evaluation of Tender basically comprises of three members
representing the Planning/ User, MM and Finance Wings, so that bids could
be evaluated technically, commercially and financially. In addition, when the
item is likely to have impact on the quality of service, a member from the
Operations/ QA Branch may be included.
7.2.2 The Technical Member would be from the concerned User Wing and who
would be generally the chairman/ convener and who would have the prime
responsibility for preparation of the report.
7.2.3 The commercial member would be from the MM Cell.
7.2.4 The Finance member would be from Finance Cell.
Technical
Chairman/
Member-cum-Convener
Commercial
User (Planning/
Operations/ Marketing/
Admin/ Service/
Technology, etc) cell
MM Cell
Finance
Finance Cell
Member
Member
7.2.5 In addition depending upon the nature of the tender, officer(s) from Operation
Branch/ any other related branches could also be co-opted as part of the
Page 109
7.3
7.4
Committee for Evaluation of Tender.

Level of Committee for Evaluation of Tender
The level of the Committee members for Evaluation of Tender depends upon
the value of the Tender. The levels for different value are given below :
Value of the Tender
Members
Technical
Commercial
Finance
Up to Rs 10 Crores
DGM
AGM
AGM
> Rs 10 Cr & up to Rs 50 Cr
DGM
DGM
DGM
>Rs 50 Cr & upto Rs 100 Cr
PGM / GM
DGM
DGM
> Rs 100 Cr
PGM / GM
PGM / GM
PGM / GM
Working Groups
For the Purpose of evaluating complex telecommunication system or those
costing more than 100 Crores, it may be necessary to provide the main
Committee for Evaluation of Tender with the assistance of the Technical
Working Group, Commercial and Finance Working Groups. Such Tenders
are high value Tenders, where the Evaluation Committee level would be at
GM and above. The Working Groups or sub-committee would be at DGM
level. The setting up of such Groups/ sub- committee would require approval
of the concerned Director of BSNL Board. However, the necessity of forming
such Groups should be decided by the Committee for Evaluation of Tender.
***
Page 110
CHAPTER - 8
8 GUIDELINES TO COMMITTEE FOR EVALUATION OF TENDER/ EOI (CET)
8.1 Introduction
8.1.1 The Guidelines provide broad procedures to enable the evaluation process.
Correct evaluation decision will continue to depend upon the experience and
good judgment of those who are responsible for evaluation.
8.1.2 The following document should be handed over to the CET members by MM
Cell :
a)
All bids accepted at the time of bid opening.
b)
Bid document along with technical specification(s).
c)
Guidelines for CET.
d)
Minutes of the bid opening, if any.
8.1.3 The above document should be received by CET members personally.
8.1.4 Wherever there is any variation between the Technical Compliance
Statement and the Drawings/ Literature attached in support of or merely with
Technical Compliance Statement the bidders should be asked to
clarify/confirm specifically the technical compliance. In cases where offered
product is under-provided the CET should load the quoted price
appropriately so as to bring it to the desired level of technical compliance.
8.1.5 Determination of the bid's responsiveness is to be based on the contents of
the bid itself without recourse to extrinsic evidence. Queries to or from
bidders should generally be avoided. However it may be resorted if found
necessary to remove any ambiguity, doubt and to bring clarity in the process.
8.1.6 Any document which has an impact on price of the bidders and which is
submitted by the bidder after opening of the tenders should not be
considered and should be ignored.
8.1.7 Only responsive bids should be evaluated in detail. A responsive bid is a bid
which satisfies following conditions of the bid documents :
a)
It meets all the major technical clauses.
b)
It meets commercial clauses.
c)
The offer is accompanied by a bid security deposit on the prescribed
proforma as indicated in the bid document and valid for 30 days
beyond the validity of the bid.
8.1.8 The CET should hold a preliminary meeting within one week of handing over
of the tender Documents. The activity as per 8.2.1, 8.2.2 and 8.3 below
should commence immediately. The Convener of the CET may coordinate to
ensure that the statements relating to 8.2.1, 8.2.2 and 8.3 are handed over to
the Finance representative so that finance vetting can start.
8.1.9 In order to help the Committee for Evaluation of Tender to formulate its
recommendations within a reasonable time frame the following allocation of
responsibilities for different actions is indicated herein.
Page 111
8.2 Technical Evaluation

8.2.1 The technical evaluation and preparation of comparative statement of value
of bids is to be carried out by the technical branch representative(s) in the
CET. The technical comparative assessment of the material list as per
un-priced BOM is required to be done along with the corresponding prices to
be taken for evaluation.
8.2.2 Vetting of such comparative list will be done by the Finance representative in
the CET.
8.3 Commercial Evaluation
8.3.1 The commercial evaluation is to be carried out by the MM Cell representative
in CET and vetted by the Finance representative.
8.3.2 Vetting of the comparative statements of bids and commercial evaluation
statement is to be done by the Finance representative in the CET.
8.4 Framing the CET Recommendations
8.4.1 Once finally vetted statements become available (within per-determined time
frame), CET may finalize its recommendations within further TEN days.
8.4.2 In case the committee has listed out major technical and commercial
conditions as evaluation criteria, the same should be clearly indicated in the
report.
8.4.3 The CET should clearly spell out its clear recommendations in its report
about technically acceptable bids, listed in an order starting from the lowest
technically acceptable bid(L-1) upwards or as per vendor rating starting from
V-1. The report should contain complete technical, commercial and financial
appraisal, the logic leading to the recommendations themselves and reason
for rejecting bids lower than the lowest technically acceptable bids.
8.5 Reasonableness of Prices
8.5.1 After consideration of all the above aspects the CET shall determine the
ordering price of the equipment and take into consideration the
reasonableness of this price.
The procurement is to be done on reasonable rates. The reasonableness of
the rates obtained in the tenders shall be assessed by comparing with the
rates of previous procurement and also current market trend for the same.
8.5.2 In order to have consistency and transparency while evaluating the tender
price, the CET in its report should record the reasons for accepting or
rejecting previous tender prices for similar items.
8.6 Negotiations with L1 bidder
8.6.1 As post tender negotiations could often be a source of corruption, it is
directed that there should be no post-tender negotiations with L-1, except in
certain exceptional situations. Such exceptional situations would include
Page 112
procurement of proprietary items, items with limited sources of supply and

items where there is suspicion of a cartel formation. The justification and
details of such negotiations should be duly recorded and documented
without any loss of time.
8.6.2 In cases where a decision is taken to go for re-tendering due to the
unreasonableness of the quoted rates, but the requirements are urgent and a
re-tender for the entire requirement would delay the availability of the item,
thus jeopardizing the essential operations, maintenance and safety,
negotiations would be permitted with L-1 bidder(s) for the supply of a bare
minimum quantity. The balance quantity should, however, be procured
expeditiously through a re-tender, following the normal tendering process.
8.6.3 Counter-offers to L-1 in order to arrive at an acceptable price, shall amount to
negotiations. However, any counter-offer thereafter L-2, L-3 etc. (at the rates
accepted by L-1) in case of splitting of quantities, as pre-disclosed in the
tender, shall not be deemed to be a negotiation.
8.6.4 It is reiterated that in case L-1 backs-out, there should be a re-tender.
8.7 Distribution of the tendered quantities amongst the various suppliers:8.7.1 The tender shall be evaluated for the quantities indicated in the schedule of
requirements. In normal purchase procedure, the orders will go in favour of
the lowest acceptable bidder for the full quantity. Apportioning the quantities
may arise due to certain limitations or considerations. As most of the items
procured by BSNL are specialized products it becomes necessary to sustain
multiple vendors/suppliers through distribution of quantities.
8.7.2 The total quantity of the order should be distributed amongst different bidders
who meet the technical and commercial specifications when such distribution
is in the long term interest of the BSNL. It is desirable that the BSNL sustains
multiple vendors through distribution of order to promote competition as in
most of the cases the BSNL may be the sole user of such
equipment/materials.
8.7.3 It may not be practicable to distribute the orders to all the bidders who meet
the technical specifications and commercial conditions, as in some case the
quantity ordered on each supplier will be too small to be viable, both for
supply and use by the BSNL. The distribution of orders therefore should
normally be restricted to the bidders who are within 50 to 60% of the lowest
bid. It is, however, to be conceded that where the quantity to be ordered is
very large or very small the number of bidders to be accommodated may
have to be worked out differently.
8.7.4 The quantity to be allocated to L-1 and number of suppliers on whom orders
shall be placed would be specified in the tender document. The CET thus
should act as per these guidelines for distribution of the quantities amongst
the various eligible suppliers.
8.7.5 In case no mention is made in the documents then, it should be in the inverse
Page 113
ratio of their evaluated prices / quotation. This will ensure that there is
incentive for the bidders to quote their lowest price from tender to tender.
While deciding the quantities technical feasibility of distribution and the
capability of each of the supplier has to be kept in view.
8.7.6 All the bidders should be offered uniform price for supply.
8.8 Miscellaneous Guidelines
8.8.1 The recommendations of the Committee for Evaluation of Tender are
essentially internal document. Final decisions are taken by the competent
authority on the basis of CET recommendation. The confidentiality of the
CET document from outsider is, therefore, to be maintained. No information
to substance, examination, clarification or evaluation of bids and
recommendations should be communicated to persons other than those
officially concerned.
8.8.2 All the pages and enclosures of the CET report should be numbered
consecutively and signed by all CET members.
8.8.3 The CET recommendations in duplicate should be received in MM Cell within
4 to 6 weeks of handing over the documents to the CET members. The
responsibility for ensuring this vests with Chairman / Convener of the CET.
8.8.4 If CET needs additional time to complete the work, permission of extension
may be obtained from the concerned Director, or, in case of field units, by the
tender approving authority, by the Chairman/ Convener of the CET
specifically indicating the reason for the same. Permission of extension, if
granted, may be intimated to MM Cell for the purpose of record and taking
further suitable action.
8.8.5 The meetings of Committee for Evaluation of Tender should be fixed with
prior consultation with its members. They should be contacted on telephone
as well. If any of the members appointed to the committee for tender
evaluation fails to attend the meetings for more than one occasion
consecutively the Chairman/ Convener of CET should bring it to the notice of
concerned Director or the tender approving authority.
8.8.6 THE TENDER EVALUATION REPORT SHOULD CLEARLY INDICATE
DEVIATIONS RECOMMENDED VIS-A-VIS TENDER CONDITIONS
ALONGWITH REASONS FOR SUCH DEVIATIONS. WHEN THERE ARE
NO DEVIATIONS FROM TENDER CONDITIONS, A DECLARATION TO
THIS EFFECT SHOULD BE INCLUDED IN THE REPORT OF THE
RECOMMENDATIONS OF TENDER EVALUATION COMMITTEE.
***
[Hint: Normally package discipline will be followed for evaluation of the bids.]
Page 114
CHAPTER - 9
9 ACCEPTANCE OF EVALUATION REPORTS AND FRAMING OF
PURCHASE PROPOSALS
9.1 Purchase Proposal
9.1.1 The Chairman/Convener of the Committee for Evaluation of Tender should
formally submit the report of the committee to the MM Branch.
9.1.2 Within 7 days of the receipt of Report, MM Branch should put up the
purchase proposal for according administrative approval along with a
self-contained note comprising of the following :
a)
Brief background
b)
Salient features of the tender giving description of the equipment,
quantities and composition of the CET, dates of NIT, Bid Openingand
Receipt of evaluation committee Report.
c)
Summary of the recommendations of the CET report.
d)
Confirmation regarding validity of the bids.
e)
Comments of MM Cell on the recommendations of the CET.
f)
Deviations/ short-comings etc, if any, mentioned by the CET
g)
Formal purchase proposal giving the justification, ordering quantities
bidder-wise, unit rates, total rates, discount if any, counter-offer if
proposed, financial implication of the proposal, advances, if payable,
Bank Guarantee proposed, consignee & paying authority. The
purchase proposals should be based on the quantities, distribution
and price as given in the Committee for Evaluation of Tender Report
and incorporating the comments of MM Cell.
9.1.3 The proposal would be sent to the competent authority(s).
9.1.4 Negotiations should not be allowed to be misused as a tool for bargaining
with L-1 with dubious intensions or lead to delays in decision-making.
Convincing reasons must be recorded by the authority recommending
negotiations.
9.1.5 Competent authority should exercise due diligence while accepting a tender
or ordering negotiations or calling for a re-tendering and a definite timeframe
should be indicated so that the time taken for according requisite approvals
for the entire process of award of tenders does not exceed one month from
the date of submission of recommendations. In cases where the proposal is
to be approved at higher level, a maximum of 15 days should be assigned for
clearance at each level. In no case should the overall timeframes exceed the
validity period of the tender and it should be ensured that tenders are
invariably finalized within their validity period.
9.2
Distribution of Quantities amongst successful bidders
9.2.1 Distribution of quantities for ordering to the selected bidders of a tender
should be as follows:
Page 115
9.2.2 The Purchaser intends to limit the number of technically and commercially
responsive ..(N) bidders from the list of such bidders arranged in
increasing order of their evaluated prices starting from the lowest for the
purpose of ordering against this tender. The distribution of the quantity shall
be as per clause 3(Distribution of Quantity) of Section 4 Part B.
9.2.3 In the event of any of the eligible bidder(s) not agreeing to supply the
equipment or not being considered by BSNL for ordering the equipment,
inter-se ranking of the bidders below the aforesaid bidder(s) will be recast to
fill up the vacated slot(s). This will be done to ensure that the number of
bidders on which order for supply of equipment to be placed remains same
as specified in the tender.
9.3 Check-List for Requisition of Material before placing Purchase Orders
9.3.1 While the Purchase Proposal is under approval, MM Cell should request the
user section to furnish the details required for incorporating in the APOs/ POs.
Following information is to be given by the user section before placement of
Purchase Orders:
S. No. Item
Status
(Y/N)
1
Sanction particulars of P/E with date of Sanction
2
Head of Account
3
Particulars of Paying Authority
4
Full details of Consignee/ ultimate Consignee with
complete address and Pin Code
5
Detailed Material List clearly indicating the
Quantity
6
Certificate regarding availability of Funds
7
Circle-wise/ SSA-wise distribution of quantities
This issues with the Approval of PGM (
User Unit
) / GM (
)/concerned head of
(signature)
AGM ( )/ DGM ( )
User Section
9.3.2 Incomplete requisitions not containing above data will be returned forthwith.
9.3.3 This checklist duly filled in and approved by the concerned PGM/ GM/
concerned head of User Unit should be signed by an officer not lower than
AGM and submitted along with the Requisition by concerned User Branch.
Page 116
CHAPTER 10
10
PERFORMANCE BANK GUARANTEE
10.1
Purpose
Performance Bank Guarantees are obtained from suppliers to ensure
performance of the contract as specified in the purchase order including
warranty for satisfactory working of the equipment and stores during the
warranty period. This also serves to cover the risk of the BSNL during the
performance of the contract.
10.2
When Required
After a tender has been evaluated and the purchase proposal of the BSNL to
place orders on the bidders has been approved by the competent authority, a
formal letter of intent(Advance Purchase Order) is placed on the supplier.
The supplier is required to furnish bank guarantee for an amount equal to 5%
of the value of Advance purchase order from a Nationalized/ Scheduled Bank
in a standard format within two weeks from the date of issue of letter of intent.
The acceptance of the letter of intent by the supplier as well as furnishing of
the Bank Guarantee would result in the issue of formal purchase orders.
10.3 Validity of Performance Security
10.3.1 The validity period of Performance Security in the form of Performance Bank
Guarantee should be in proportion to the delivery period as per the details
given below :
S. No. Delivery Period
Validity Period of Performance BG
1. Up to 6 months
2 Years
2. 6 months to 1 year
2 years and 6 months
3. More than 1 year
3 years
10.3.2 However, in no case the validity period of the PBG should be less than the
period by which all the contractual obligations of the bidders in the respective
tenders are likely to be fulfilled.
10.3.3 BSNL may ask for extension(s) of the validity period till the time all
contractual obligations have been satisfactorily performed by the supplier.
10.4 Action to be taken on Receipt of Bank Guarantee from the Supplier
10.4.1 Examination for Accuracy: The first action to be taken on receipt of bank
guarantee from the supplier is to examine the genuineness of the bank
guarantee in the light of standard format prescribed as well as a formal check
with the bank.
10.4.2 Acceptance of Bank Guarantee: Acceptance of Bank Guarantee is issued to
the concerned bank after its genuineness has been examined and entries
made in the Register. The acceptance letter is issued to the concerned bank
with a copy to the supplier.
Page 117
10.4.3 Entry in Bank Guarantee Register: After the genuineness has been
established, it is entered in the Bank Guarantee Review Register with
reference to the amount and the date of validity supplier-wise. The format of
the register is enclosed. The entry of the bank Guarantee in the Register is
done in the space allocated to the month and year on which it expires and not
the month and year of the issue of the Bank Guarantee i.e. entries in the
register indicate expiry date of the bank guarantee, thereby enabling them to
be monitored in case renewals are required.
10.4.4 Periodic Monitoring of Register: A periodic monitoring of the status of the
validity of the bank guarantee vis--vis the performance of the supplier
against the contract is necessary to ensure that the bank guarantee is
available to BSNL, if required.
10.5
Importance of Bank Guarantee Register

Bank Guarantees are one of the remedies available to the BSNL for covering
risk during the performance of the contract. It is therefore necessary that
bank guarantee be properly entered in the register and monitored so that
these remedies are available. Monthly checks of all the pending bank
guarantees which expire in the next three months are necessary. All bank
guarantees which are likely to expire during the next three months, should be
followed up with regard to the performance of the supplier against the
contract. In case the supplier has satisfactorily performed this contract, then
no further action will be taken. However, in case the supplier has not
performed satisfactorily, then it would be necessary to ask for an extension of
validity of bank guarantee for a further period of 3 months to 1 year so that
these remedies would continue to be available to the BSNL. Therefore, when
the monthly check-up of the bank guarantee register is carried out, the bank
guarantees likely to expire in the next three months needs to be separated
out in two categories viz.
a)
which are by and large OK and
b)
where extensions need to be asked for immediately.
10.6 Extension of Bank Guarantee

10.6.1 If extension of the Bank Guarantee is required then the supplier should be
intimated at least two months before the expiry date for furnishing the
extension well in time. If extension is not received 15 days before the expiry
of the Bank Guarantee, then a formal letter should be issued to the bank
asking for revocation unless the Bank Guarantee is extended as per BSNL
requirements. If the Bank Guarantee is not extended then it should be
encashed as per para10.9.2.
10.6.2 It should be ensured that the Bank Guarantee is not allowed to expire in any
circumstances.
Page 118
10.7
Operation of the Set-off Clause

Till now the suppliers are being asked to furnish bank guarantee for each
purchase order. At present, there is no practice for an omnibus bank
guarantee, covering say one year. In order to cover risk element, the
purchase order should contain a set-off clause which will enable BSNL to
encash any bank guarantees against any other purchase order given by the
same supplier. Therefore, it is prudent to keep all the bank guarantees of a
supplier recorded at the same place in the register so that the operation in the
set-off clause wherever felt necessary could be under taken without any
problem.
10.8
Release of Bank Guarantee

Before bank guarantee is released, it should be ensured that the equipment
has been taken over satisfactorily by BSNL, no claim is pending against the
supplier and that the equipment are working satisfactorily during warranty
period. The combination of "taken over" certificate and "no claim" certificate
will lead to release of the bank guarantee to the supplier.
10.9 Encashment of Bank Guarantee

10.9.1 This is resorted to where the supplier fails to honour its contractual
obligations. The precaution to be taken is to ensure that the bank guarantee
is still valid. A formal letter to the bank giving particulars of the guarantee
number asking for revocation of the Bank guarantee in favor of the BSNL,
needs to be issued.
10.9.2 Even in case where BSNL has asked for extension well in advance, the
extension has not been given by the bank, then it is within the rights of the
BSNL to encash the bank guarantee just prior to the date of expiry and the
bank is bound to honour this revocation.
10.10 Acceptable Forms of Performance Security
The Performance Security should be in the form of a Bank Guarantee issued
by a scheduled bank in favour of BSNL. Performance security in the form of
Account Payee Demand Draft, Fixed Deposit Receipt or Bankers Cheque,
safeguarding the purchasers interest in all respects, shall also be acceptable.
However no interest shall be payable on this account.
10.11 Format of Performance Security (PBG)
A model format of Performance Bank Guarantee is provided at Section-IX of
Chapter 4(Standard Tender Enquiry Document).
10.12 Verification of the Bank Guarantees
Bank Guarantees submitted by the bidders as Performance security or
additional bank guarantee must be immediately verified from the issuing
Bank before acceptance
Page 119
11
CHAPTER - 11
ADVANCE PURCHASE ORDER
11.1
Purpose
The purpose of the Advance Purchase Order (APO) is to formally intimate
the successful bidder/bidders of the intention of the BSNL to procure the
equipment.
11.2 Contents
The APO shall contain the following information :
a) File number, date and reference of Tender Enquiry No. and submitted
bid reference No., etc.
b) Equipment to be procured with quantities/price.
c)
Technical Specifications
d) Commercial conditions governing the contract.
e) Finance aspects such as advance payable (if any), amount of
Performance Bank Guarantee along with format of the Bank
Guarantee.
f)
Delivery Schedule.
g) Period within which the Bidder has to confirm acceptance to the APO
along with the performance bank guarantee.
h) Annexures comprising Sections-3 Part B , 5 Part A, 5 Part B of the bid
document, AMC draft, scope of work, detailed bill of material,
make-model list, etc
11.3 Format
Format of an APO is given below for ready reference.
Page 120
ADVANCE PURCHASE ORDER FORMAT

Bharat Sanchar Nigam Ltd.
(A Govt. of India Enterprise)
[Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath
New Delhi - 110 001
(MM Section)
File No Dated
APO NO:
To,
<complete address of the Vendor>
Subject:
Placement
of
Advance
Purchase
of .
Order
for
supply
Reference: (i) This office T.E. NoDated

(ii) Reference of clarifications issued update
(iii)Your Bid Ref. No Dated ..
Dear Sir,
On behalf of BSNL, an Advance Purchase Order (APO) is hereby placed on
you for the supply of .. as per the technical specifications, commercial &
special terms & conditions of the tender under reference. The APO is likely to be
converted into detailed Purchase Order after receipt of your unconditional /
unequivocal acceptance to this APO along with PBG for an amount of
Rs.. The Bank Guarantee to be furnished should be strictly in BSNL
format issued by an Indian Nationalized/ Scheduled Bank. The Bank Guarantee
should be valid for a minimum period of.. and may be submitted in
duplicate (one original copy & one photo copy). This APO is governed by the
General (Commercial) Conditions of Contract (Attached as Annex-A), Special
(Commercial) Conditions of Contract (Attached as Annex-B) and the Special
(Technical) Conditions and Technical Specifications (Attached as Annex-C). The
subject APO is being placed on following terms & conditions.
1.
Conversion of the APO into Purchase Order

The APO is likely to be converted into detailed Purchase Order (PO) after
receipt of your unconditional/ unequivocal acceptance of this APO along with
Performance Bank Guarantee (PBG) for an amount of Rs
with all other documents and information as called for in this APO. The PBG
to be furnished should be issued by a Nationalized/Scheduled Bank and
strictly in accordance with the BSNL format .
Page 121
2
3.
Quantity
..
Prices
The supply shall be governed at unit prices on all inclusive basis i.e. Excise
Duty, Sales Tax, packing, freight, forwarding, insurance etc but excluding
octroi/ entry tax which shall be paid extra as per actuals, wherever applicable.
The price shall further be governed in accordance with clause No.12 and 24
of Section-III of Bid-document. The detailed prices are given below:
Sl. Ite
No m
Qty. Basic Excis

Nos. unit
e duty
price % Rs.
Rs.
Sales
tax %
Rs.
F&F
pkg &
insur %
Rs.
Unit
price all
inclusiv
e
Rs.
Unit
CENV
AT
Rs.
Unit price
excluding
Cenvat
Rs.
4.
Delivery Period
4.1 .
(The detailed month wise-supply schedule shall be mentioned)
(installation commissioning period, if any shall be mentioned).
4. 2 The equipment supplied will be strictly in accordance with the specifications
laid down by the BSNL. The supply shall be made only after QA (BSNL) have
carried out necessary inspection/testing and approved the equipment for
supply to BSNL.
5.
5.1
5.2
5.3
Payment terms
The payment schedule will be as under (The payment schedule shall be
mentioned):
The payment shall be made in Indian Rupees. No separate payment for AMC
will be done, it will be merged with the AMC of the existing equipments.
For claiming the payment, the supplier has to submit the following
documents to the paying authority:(a)
Invoice clearly indicating break up details of composite price i.e. Basic,
E.D., Sales Tax, any other Duties and Taxes, Freight/Packing
Charges, Service Tax etc.
(b)
Acknowledged Delivery Challan in original
(c)
Excise gate pass / invoice or equivalent document, if applicable.
(d)
Inspection Certificate of QA-Payable copy in original
(e)
The sea freight receipt as per the rates approved by the Ministry of
Water and Surface Transport, if applicable.
Page 122
(f)
Proof of payment of Octroi/ entry tax etc., if applicable.
Note :-
5.4
If the supplier fails to furnish necessary supporting documents i.e.

excise/Customs invoices etc. in respect of the Duties/taxes which are
CENVAT-able, the amount pertaining to such Duties/Taxes will be
Payment against CENVAT-able duty will be made only when CENVAT-able
invoice is submitted by the supplier.
6.
Warranty
The warranty of the equipment will be for 12 months period starting from the
date of the system acceptance. The supplier will provide support service
during this warranty through its factory facilities or its Regional Repair
centers. The warranty of the equipment shall be as per clause No. 10 of
General (Commercial) conditions and clause No.. of Special
(Commercial Conditions, if any).
7.
Delayed supply and LD
8.
Fall Clause:
9.
Annual Maintenance Contract (AMC)

Terms & conditions of AMC are attached as Annex-G.
10.
Scope of the Work.

The scope of work will be as under ( as per Annexure).
11.
Technical Specifications.-
12.
Quality Assurance and Inspection

M/s . will propose the test schedule within 1 week of issue of
P.O. for testing of functional requirements including validation of various
reports. This test schedules shall be examined by BSNL and finalized within
2 weeks of receipt of the same to make it as a reference document for testing
by BSNL.
13.
A/T Acceptance:
This will be governed as per the existing conditions of tender under heading
reference S. No (i) above.
14.
Training
Training to BSNL staff shall be imparted by supplier for implementation and
operating the system for 2 days in each of the Telecom circles (Total ..
Page 123
days). The logistics for the training will be arranged by BSNL.

15.
Security Agreement
Acceptance of APO shall imply that you will sign the Security agreement as
required vide Security clause No.36 of Section 4 Part A of tender document,
if applicable.
16.
BSNL reserves the right to cancel Purchase Order if the agreed delivery
schedule is not adhered to by the supplier. Any loss arising out of such
delays in the supply of the equipment shall be on the supplier account.
17.
---------% advance shall be payable against this order.(If applicable in case of

ITI Reservation Quota only)
18.
The supplier shall submit unconditional acceptance to all the technical,

commercial clauses/conditions of the tender document, GR and clarifications
issued, along with acceptance of the APO.
19.
This APO & PO/Contract is subject to jurisdiction of Court at .. only.

Yours faithfully
Assistance General Manager (
Enclosures:1.General (Commercial) Conditions of Contract (Annexure-A) - pages.

2. Special (Commercial) Conditions of Contract (Annexure-B) - ... pages.
3. Technical Specifications (Annexure-C) pages.
4. Detailed Bill of Material (Annexure-D) .. pages.
5. Make & Model List (Annexure-E) pages
6. Circle wise (or SSA wise) allocation list (Annexure-F) pages
7. Terms and conditions of AMC (Annexure-G) pages.
Copy to :
1.
2.
3.
4.
GM (User Group), BSNL CO, New Delhi.

CGM QA , 61, Cock Burn Road, Bangalore
AGM (User), BSNL CO, New Delhi, w.r.t. his U.O. Note No .
Date ...
Office copy.
***
Page 124
CHAPTER - 12
12 PURCHASE ORDER
12.1
Conditions for issue

The issue of Purchase Order in any procurement is subsequent to the
following conditions being met:
a) The Committee for Evaluation of Tender recommendations, including
any modifications, where felt necessary is approved by the competent
authority.
b) The purchase proposal being approved and concurred by the
competent administrative authority and finance advice.
c)
The successful bidder/bidders accepting the Letter of Intent/Advance
Purchase order containing all the commercial clauses and prices
unconditionally.
d) The successful bidders providing the required Bank Guarantee from the
Nationalized/ Scheduled Bank.
e) The issue of Purchase Order, in the approved format being approved
by the DGM in charge of procurement.
f)
The Purchase Order shall be issued on firm prices only.
g) Any other condition required to be met.
12.2
Competent Authority to Issue Purchase order

On the fulfillment of the conditions necessary to issue the Purchase Order,
the designated AGM of the MM Branch would be competent authority to
issue the Purchase Order.
12.3
Purchase Order Format

A sample format of purchase Order is given in Annex 12.1 for ready
reference.
Page 125
Annexure- 12.1
PURCHASE ORDER FORMAT
(A Govt. of India Enterprise)
[Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath
New Delhi - 110 001
(MM Section)
File No.__________________
Dated__________
PO NO..
Subject:- PURCHASE ORDER FOR THE SUPPLY OF ..
______________________________________________________________
:
1 Name &
Address of
Contractor
2
Name of
Purchaser
Bharat Sanchar Nigam Ltd.,.

A Government of India Enterprise
(Hereafter referred to as Purchaser).
Purchasers
reference
T.E. No
Ii
BSNL APO No..
5
6
Contractors
reference
i
ii
iii
Scope of the :
PO
Consignee
:
Details,
Paying
Authority etc.
Your acceptance
No. ..
Delivery
Schedule
The total delivery period for supply of equipment

shall be ..from the date of placement of Advance
Purchase Order. The first ..months shall be for
validation and lead time for preparation. The supplies shall be
evenly distributed month-wise and circle-wise as given
below:- (The delivery schedule will be mentioned)
7.1
to
above
APO
vide
your
letter
Page 126
7.2
Performance
Bank
Guarantee
If the supplier fails to complete the supply during the original

delivery period, the purchaser reserves the right to cancel the
Purchase Order & take action according to the terms &
conditions of the tender.
M/s.has accepted the APO unconditionally/
unequivocally & has furnished performance bank guarantee
for
an
amount
of
Rs..
vide
BG
No. .dated by.. and this PBG is valid
up to ...
Quantity and
Price
The detailed prices are given below:
19
Sl.
No
10
Type Qt
y.
No
s.
Basic
unit
price
Rs.
Payment Terms
Excise
duty %
Rs.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Sales
tax
%
Rs.
F&F
pkg &
insur
% Rs.
Unit price
all
inclusive
Rs.
Unit
Unit price
CENVAT excluding
Rs.
Cenvat Rs.
<Payment conditions to be mentioned>

For claiming payment, the supplier shall submit the following:
Invoice
Delivery Challan
Supplier certificate for dispatch
Insurance receipt/Policy copy
Excise Gate Pass/Invoice /equivalent document
Consignee Receipts
The sea freight receipt as per the rates approved by the
Ministry of Water & Surface Transport
Proof of payment of Octroi/ entry tax etc., if any
Payment against CENVAT-able duty will be made only when CENVAT-able invoice is
submitted by the supplier.
11
Specification
The complete equipment supplied shall be strictly in

accordance with TEC Specification No.. GR/..
and all other amendments & clarifications issued/ to be
issued by this office.
Page 127
12.
Insurance
13
Installation
&
Commissioning
14
Repair Center
15
15
Training
The equipment shall be got insured by the Contractor up to a

minimum period of..days after store is delivered to
the consignee. The supplier will be responsible till the entire
quantity of the stores ordered for arrival in good working
conditions at destination is received by consignee. The
consignee will immediately but not later than prescribed
period of insurance of arrival of the stores at the destination
notify the contractor of any loss or damage to the store that
may have occurred during transit. The period of insurance
cover will be indicated by the contractor to consignee/ paying
authority. In case of any loss/ damage during transit the case
will be lodged by supplier with the concerned authority on
receipt of report from the consignee/ paying authority. The
store should on no account be dispatched, delivered without
getting them tested/ accepted by BSNL Inspecting & QA
Testing Wing.
The supplier shall have to establish nodal repair centers in

India for undertaking repair of faulty modules/PCBs including
tools and testers. There shall be at least one nodal centre in
each circle allotted to the supplier. The turn around time for
such repairs shall be maximum 21 days as per the provisions
made in AMC conditions included in this tender. The supplier
shall clearly intimate the site for such repairs in advance.
16
Documentation
17
Validation/ TSEC :
:
The supplier shall have to get their equipment type
approved / validated from TEC or a team nominated by
BSNL. All the shortcomings observed during TAC/Validation
process shall also be rectified by supplier in all the supplies
already made/to be made without any cost. The supplier shall
also be responsible to get the Acceptance Testing (A/T) done
through the A/T Wing of BSNL.
Page 128
18
Warranty
19
Other conditions 19.1

of the contract
The supply of .equipment shall be governed as per

General (commercial) conditions of the contract given in
Annex.-B and special conditions of contract given in
Annex.-C and as per procurement manual ..
19.2
The entire supply shall also be governed as per all terms &
conditions as laid down in the bid document of the tender
enquiry and as modified from time to time. Any
amendment/clarification/modification issued /to be issued
shall also be applicable for this supply. However, wherever
there is a conflict, special conditions as given in section IV of
bid document and conditions given in this Purchase Order will
prevail over the general conditions given in Section-II & III in
the bid document.
20 Fall clause
21. Jurisdiction of Court : This PO/Contract is subject to jurisdiction of Court at Delhi only
Asstt. General Manager ( )

Enclosures:-1.General (Commercial) Conditions of Contract (Annexure-A) -
pages.
2. Special (Commercial) Conditions of Contract (Annexure-B) - ...
pages.
3. Special (Technical) Conditions & Technical Specifications
(Annexure-C) pages.
4. Detailed Bill of Material (Annexure-D) .. pages.
5. Make & Model List (Annexure-E) pages
6. Circle wise (or SSA wise) allocation list (Annexure-F) pages
7. Terms and conditions of AMC (Annexure-G) pages.
Copy to :
1.
GM (User Group), BSNL CO, New Delhi.
2.
CGM QA , 61, Cock Burn Road, Banglore
3.
AGM (User), BSNL CO, New Delhi, w.r.t. his U.O. Note No.
dated ..
4.
..
5.
..
Yours faithfully
(
)
Page 129
13
CHAPTER - 13
GUIDIELINES FOR PLACEMENT OF EDUCATIONAL ORDERS
13.1
The Need
The purpose of educational order is to develop new potential source of
commercial supplies by broadening the supply base and encourage
competition so that BSNL could have the benefit with regard to quality,
delivery and price and break possible cartelization among the established
vendors. This needs to be done where the capacity of the industry is
inadequate to meet the requirements of the BSNL. However, there are some
items for which the existing established base is much greater than the total
requirement of the BSNL and such production units are already under loaded
and in such cases there is no need for development of new supply sources
for placement of educational order.
13.2
Nomenclature
The nomenclature of "educational order" will include what is currently known
by the name of trial order or experimental order.
13.3
Type Approval
An educational order would be given only to a vendor who has obtained type
approval of the equipment or item of store concerned from the TEC or the QA
as the case may be.
13.4
Quantity of Order
The educational order for an item in favour of any vendor will be restricted in
a financial year to a maximum of 2 per cent of the total requirement for the
financial year and financial limit for placing an Educational Order for any item
in favour of any vendor will be Rs. One Crore. In case the requirement for the
current year is not available, it will be restricted to actual purchases made in
the previous financial year.
13.5
Price
A vendor seeking to obtain an educational order will not be expected to
participate in a bid for a tender. The order can be placed upon him subject to
various restrictions given in this chapter at a price which is at least 10% less
than the latest tender price for the current year(i.e. finalized during past 10
months) for the concerned item. In case, the tender price for the current year
is not yet available, the price would be fixed provisionally at 75% of the last
year's price which will be suitably adjusted to 90% of the current price when it
becomes available.
Page 130
13.6
Power to place Educational Order

The educational orders for telecom equipment and stores shall be placed for
centralized purchase item
by the BSNL Corporate office and for
decentralized items by Circles to whom power is delegated for its
procurement.
Note:-In case of decentralized items, Corporate Office will authorize CGMs
for placement of Educational Order.
13.7
Exceptions
Any exception to the above guidelines will be made only with due approval of
Business Vertical i.e. Director or CMD in BSNL Corporate Office.
***
Page 131
CHAPTER 14
14
PRICING AND PRESERVATION OF THE TENDER DOCUMENTS
14.1 Pricing of the tender documents

14.1.1 The company incurs expenditure for the preparation of bid documents. It is
also desirable that only the genuine prospective bidders should acquire
these bid documents to avoid wastage. With this in view, it is decided that
the bid documents to be issued to the prospective bidder must be sold at the
pre-determined price. The price of the document is determined on an
estimated cost of procurement and is indicated below:
Sl. No Estimated cost of tender
Bid document price
Up to Rs 1 Lakh
Rs 100/-
ii
Above Rs 1 Lakh and uptoRs 50 Lakh
Rs 500/-
iii
Above Rs 50 Lakh and uptoRs 1 Crore
Rs 1,000/-
iv
Above Rs 1 Crore and uptoRs 10 Crores
Rs 2,000/-
Above Rs 10 Crores and uptoRs 50 Crores
Rs 4,000/-
vi
Above Rs 50 Crores and uptoRs 150 Crores
Rs 8,000/-
vii.
Above Rs 150 Crores
Rs 10,000/-
Note: Bid documents for limited tenders of estimated cost up to Rs 50,000/(Rupees Fifty Thousand Only) may be issued free of cost. However,
bid documents for limited tenders of estimated cost above Rs 50,000/may be priced as per the details given above.
14.1.2 However, the Tender documents to MSE registered Small Scale Industries
shall be given free of cost. Before issue of such Tender documents free, they
should be asked to submit details of their registrations with MSE for the
tendered item. Their eligibility as per terms and conditions of the tender in
question should also be examined and if they meet the conditions stipulated,
they may be issued tender documents free of cost.
14.2 Preservation of tender documents
14.2.1 As per the bid documents a bidder submits 5 copies including the original bid
document. 4 copies of the bid documents are distributed among the
members of the Committee for Evaluation of Tender. Each member of the
Committee for Evaluation of Tender will preserve his copy up to a month after
the purchase orders are issued against a tender enquiry. One month after
the issue of the purchase orders the bid document may be disposed off by
the member themselves. MM Cell will continue to keep the original copy till
the contractual obligations are over.
Page 132
14.2.2 In case of tenders invited through e-tendering process Tender Document,

Clarifications issued by purchaser, Bid data downloaded during the Tender
Opening events shall be saved & backup of same shall be kept on suitable
media such as DVD/CD under signature of all Tender opening Officers. The
data saved as above shall be used as reference for providing details of bids
if required in future by any agency.
14.3
Post-bid clarifications from bidders

One set of documents submitted by bidders after opening of bids in
response to clarifications sought by BSNL during evaluation should be
preserved in MM Cell (MMT Section in Corporate Office) along with the
original bids of the bidders.
***
Page 133
15
CHAPTER - 15
CONCESSIONS TO MSE UNITS
15.1
The guidelines, issued by Ministry of Micro, Small & Medium Enterprise

(MSME), Government of India regarding concessions for Micro& Small
Enterprise Units registered with District Industries Centres or Khadi & Village
Industries Commission or Khadi & Village Industries Board or Coir Board or
National Small Industries Corporation(NSIC) or Directorate of Handicrafts &
Handloom or any other body specified by Ministry of Micro, Small & Medium
Enterprise, have been considered by the BSNL (Corporate Office) and it has
been decided that these units shall be allowed the following concessions.
15.2
Supply of Tender Documents

The tender documents shall be issued to MSE bidders free of cost provided
the tendered item is listed in the Registration Certificate of MSE.
15.3
Exemption from payment of Bid Security deposit /Earnest Money

Deposit
The MSE units registered with bodies as detailed in para 15.1 above shall be
given exemption from payment of Bid Security deposit provided the tendered
item is listed in the Registration Certificate of MSE.
a) A proof regarding current registration with bodies as detailed in para 15.1
above for the tendered items will have to be attached alongwith the bid.
b) The enlistment certificate issued by bodies as detailed in para 15.1 should
be current & valid on the date of opening of bid.
15.4 Reservation of Quantity

15.4.1 20 % of the Estimated Quantity /requirement in any tender shall be earmarked
to be procured from MSEs provided their quoted price is within the band of
L1+15%. Out of this quantity, a sub target of 4% is earmarked to be procured
from SC/ST owned eligible MSEs. In case of non availability of SC/ST owned
MSEs, this 4% quantity shall be offered to other MSEs.
15.4.2 The participating MSEs in a tender, quoting price within the band of L1+15%
are also be allowed to supply a portion of the requirement by bringing down
their price to the L1 price arrived after tender evaluation. Such MSEs shall be
ordered to supply up to 20 % of the total tendered value. In case of more than
one such eligible MSE, the supply will be shared equally.
15.4.3 In case a MSE happens to be L1, L2 etc, then it will be allotted tender quantity
as envisaged in the tender.
15.5 Ordering of Quantity (Delivery Schedule)
The Purchase Order issued on MSE will be based upon its monthly turnover
and / or the quantity stated in the questionnaire of the tender during bid
submission.
Page 134
CHAPTER 16
16
16.1
VENDOR RATING SYSTEM

Introduction
The BSNL is procuring equipment and materials worth thousands of crores
of rupees every year through its PSUs, Telecom Factories and open
tenders. It is therefore necessary that the BSNL procures only quality
products at competitive prices with deliveries at stipulated pace for
achieving planned and operational targets. Keeping this in view BSNL has
decided to introduce Vendor Rating System for procurement of materials
with effect from January' 97.
16.2
Vendor Rating
16.2.1 The philosophy of Vendor Rating aims to help the BSNL to procure
equipment/stores from a vendor who is able to deliver the products of good
quality and at competitive prices with deliveries at a stipulated pace for
achieving planned and operational targets. Assessment of these
qualifications of a vendor, on a single point scale, to help grading the
performance of a vendor is called Vendor Rating.
16.2.2 The vendor getting the highest rating will be regarded as V-1 (similar to L-1)
and the others in the descending order of their rating for the purpose of
distribution of quantities of equipment/ materials to be ordered. However,
the ordering rate (price)for procurement will be the lowest evaluated price
out- of the rates quoted by the vendors selected for ordering on Vendor
Rating basis.
16.3
Vendor Rating (VR)
Vendor Rating will be calculated as per the formula given below:VR = 0.6 PR + 0.3 DR + 0.1 QR
Where
PR = Price Rating
DR = Delivery Rating
QR = Quality Rating
16.4
Price Rating (PR)

Price Rating is worked out as follows:
PL
PR =
------PQ
Where
PL = Lowest price quoted by a vendor for the product being
tendered.
PQ = Price quoted by the vendor being evaluated for the tendered item.
Page 135
16.5
Delivery Rating (DR)
16.5.1 The Delivery Rating will be calculated as per the formula given below:
Where
Qi <Qp
If Qi >Qp, then take Qi = Qp
Q1
= Quantity supplied within Scheduled delivery period.
SDP
= Scheduled Delivery Period or Initial Delivery Period(IDP)
Q
= Total ordered quantity
T
= Scheduled delivery period in months.
Tx
Qx
P
Qi
Qp
=
=
=
=
Time taken beyond Scheduled D.P. in months for each

extension including Scheduled D.P.
Q1
----Q
Quantity supplied during each extended period.

Number of supply segments or slots (within SDP)
Quantity delivered in a particular supply segment (within SDP)
Quantity to be delivered in every supply segment (within SDP)
For calculation of DR, the following procedure as per above formula will be
adopted.
16.5.2 The period for calculation of Delivery Rating will be two years as specified in
Bid Documents. It is defined as "WINDOW".
16.5.3 All purchase orders issued during the "WINDOW" will be considered for
calculation of Delivery Rating. However, if in respect of any such P.O. the
scheduled delivery date extends beyond the "WINDOW", then in respect of
such P.O (s), the Delivery Rating shall be calculated taking into account the
supplies required to be made within the period common to both the
"WINDOW" and the scheduled delivery period that shall be taken on
prorata basis.
16.5.4 All supplies made within any period of the "WINDOW" in respect of P.Os
Page 136
issued prior to the commencement of the "WINDOW" shall be considered

for the calculation of DR, provided such period of the "WINDOW" falls within
original scheduled delivery date stipulated in the P.O and not any further
extensions accorded and this shall be further subject to the following
proviso:
16.5.5 From out of supplies actually made during the "WINDOW", shortfall if any in
the supplies to be made prior to the commencement of the "WINDOW" shall
be offset and the balance quantity alone shall be taken as effective supply
during the "WINDOW".
16.5.6 The formula for computing overall DR taking into account the DR for every
P.O is given below:
Where
Qoi = Quantity ordered for the ith P.O

DRi = Delivery Rating for the ith P.O.
n = No: of P.Os
16.5.7 The Delivery Rating of vendors who have not executed any commercial
order during "WINDOW" will be rated based upon their past performance.
In case their past performance is equal to or above the average DR of the
firms under consideration, then they will be given average delivery rating.
However, if their past performance is below average delivery rating, the
actual performance will be taken for calculation of Delivery Rating. The
"WINDOW" for this purpose shall be of same duration.
16.5.8 In case of the vendors who have executed only Educational Orders, a
Delivery Rating equal to Average Industrial Rating or Delivery Rating
earned by them in Educational Orders whichever is less will be given.
16.5.9 If the delay is caused due to departmental reasons as certified by competent
authority or Force Majeure conditions, it will not be taken into account in
computing delays in supply.
16.5.10 For the purpose of calculation of Delivery Rating only, the date of delivery
will be taken as the date of issue of Inspection Certificate by QA Wing.
However, for the purpose of payments and liquidated damage, the delivery
will continue to be as stipulated in the Purchase Order.
16.5.11 The supplies should be spread evenly over the scheduled delivery period.
An uniform 60 days of initial segment (including lead period) and 30 days or
part thereof for subsequent segments (slots) are presumed, irrespective of
time allotted for the initial segment in P.O in order to observe an uniform
supply principle for computing DR.
Page 137
16.6
Clarifications on VRs
16.6.1 Clarification for Clause 16.5.4:
a) The Purchase Order issued prior to commencement of "WINDOW"
whose extension period alone lies within the "WINDOW" will not be
considered for DR calculation.
b) A Purchase Order which has got an extension in addition to a part of
Scheduled Delivery Period in the "WINDOW" will be considered for
the purpose of DR. In such cases the supplies effected during the
extension period also will be taken into account.
16.6.2 In respect of POs issued during "WINDOW" for which the Scheduled
Delivery Period closes within "WINDOW" and extension is issued by the
purchasing authority which may extend beyond "WINDOW", the DR in such
cases will be calculated on prorata basis taking into account the supplies
supposed to be made during "WINDOW".
16.6.3 Purchase Orders issued against BSNL (Corporate Office), tenders only will
be considered for calculation of Delivery Rating.
16.6.4 Any modification obtained by supplier on its request made after the date of
NIT which are in the nature of affecting the existing DR will not be taken into
account.
16.6.5 Advancing of supplies between segments, within Scheduled Delivery
Period will be reckoned for calculation of DR subject to the condition that
the supplies made in excess of the quantity that is required to be supplied in
that segment will be carried over to the next segment and so on. This
procedure will be uniformly applied for all POs whose Scheduled Delivery
Periods lies either fully or partly within "WINDOW".
16.6.6 In respect of PIJF cable only, irrespective of the group, the quantity of
cables supplied will be taken in terms of CKM (conductor Km) for the
purpose of DR calculation subject to the condition that the quantity so
calculated in CKM will be limited to the quantity of the cable to be supplied
in each size, as specified in the P.O.
16.6.7 DR for all the cases will be calculated by CGM (QA), Bangalore and his
decision is final.
16.7
Quality Rating (QR)

The Quality Rating will be awarded in the following manner, if the bidder
submits valid ISO 9001 / 9002 Certificate.
Certification
Quality Rating
ISO 9001
ISO 9002
Page 138
16.8
Ordering Price
Vendor with the highest Vendor Rating will be regarded as the V-1 bidder
and the others listed in the descending order of their vendor rating for the
purpose of distribution of the quantities to be ordered. However, the
ordering rate (price) for procurement will normally be the lowest one out of
the rates (prices) quoted by the vendors selected for ordering on Vendor
Rating basis.
16.9
Implementation Methodology: Role of different Wings of BSNL
16.9.1 BSNL Corporate Office
a)
It would be the nodal point with regard to all matters related to Vendor
Rating System.
b)
The MM Branch shall incorporate all aspects of Vendor Rating that
are required to be spelt out clearly in appropriate clauses of the tender
documents.
c)
The MM Branch shall also ensure transparency of Vendor Rating
System to all concerned as per provisions contained in the tender
documents.
d)
The MM Branch shall evolve a Grievance redressal Mechanism and
be responsible for redressing any grievances of vendors with regard
to Vendor Rating issues.
e)
The Committee for Evaluation of Tender would be responsible for final
computation of the Vendor Rating figures in respect of POs placed by
BSNL Corporate Office, based on the Delivery Rating figures received
from BSNL QA and the Price Rating and Quality Rating.
16.9.2 QA Circle
Responsible for collection and processing of the Delivery Rating data from
various QA centers and consolidation of the same as per various clauses of
tender documents and submit Delivery Rating of all bidders participating in
a tender to the Purchasing Authority.
16.9.3 Role of CGMTS
a)
CGM (TS), Calcutta, would be the nodal officer with regard to all
procurements done through CGM (TS).
b)
He is responsible for incorporating suitable clauses in the tender
documents with regard to the Vendor Rating System in all tenders to
be issued in future, for the products on which Vendor Rating system is
to be applied.
c)
He is to ensure transparency of Vendor Rating system to all
concerned as per provisions in the tender documents.
d)
He has to evolve grievance redressal mechanism and be responsible
for redressing any grievance of vendors with regard to Vendor Rating
issues.
Page 139
e)
He is to do final computation of Vendor Rating figures while finalizing

the tenders based on Delivery Rating received from BSNL QA and his
own price and quality rating calculations.
Page 140
CHAPTER 17
17 COPIES OF LETTERS/ CIRCULARS/ ANNEXURES
17.1 Annex-1.1
Centralized Items to be procured by BSNL Corporate Office
S. No.
Item
1
Digital Wave Division Multiplexing (DWDM) equipment and associated

test and measuring instrument
Synchronous Transport Mode (STM)-1,4,16

associated test and measuring instrument
Digital cross connect systems.
Cellular Mobile Service Expansion Equipment
Extra Large Digital Switches, C-DOT MAX-XL & TAX including RSUs
& RLUs
PIJF Cables except 5 Pair Cables
National Internet Backbone Equipment (NIB)-II
WLL Service Expansion Equipment
Voice Over Internet Protocol (VOIP) Equipment
10
International Gateway Equipments
11
Optical Fibre Cables. 24 Fibre & higher
12
Any new Technology or new services items
13
Digital Satellite Public Phone (DSPT)
14
Digital Loop Carrier (DLC)
15
Line Multiple Distribution System (LMDS)
16
Digital Circuit Multiplexing Equipment (DCME)
17
Intelligent Network (IN)
18
19
Managed Leased Line Network (MLLN) Equipment

Any New Technology or New Services Item or Item not established in
the network being introduced for the first time and items for which
quality has not stabilized
Equipment
and
***
Page 141
17.2
Guidelines for procurement of Decentralized items.

[Jt.DDG (MMS) BSNL CO No.60-8/2000-MMS/508Dated 21-06-01]
Kindly refer to this office letter of even No. dated 11.4.2001 wherein the
decision of BSNL, Board was intimated to Heads of Telecom Circles for the
items required to be purchased through centralized / decentralized
procurement.
It has now been decided that the following guidelines may be followed by the
Circles for procurement of the decentralized items :
a) Procurement shall be done following transparent tendering procedure
in consistence with the overall procurement policy of the BSNL.
b) While procuring, the existing inventory and inventory in the pipeline
should also be accounted for. Circles should take into account their
consumption pattern while assessing their requirements. Utmost care
should be taken to ensure that piling up the inventory is avoided. Care
is also to be exercised in assessing the requirement of items where no
norms are prescribed. Rate List number in respect of stocked items will
continue to be retained till further instructions.
c)
Procurement will be as per technical specifications (GR) applicable at
the time of calling of the tenders. The applicable specification with
Amendment No. should be indicated in the tender as decided by the
BSNL HQ.
d) For all purchases made, the deliveries should be accepted after
appropriate inspection and testing by QA Wing.
e) The procurement is to be done on reasonable rates.
The
reasonableness of the rates obtained in the tenders shall be assessed
by comparing with the rates of previous procurement and also current
market trend for the same.
f)
Telecom Circles shall procure these items to meet their annual
requirements keeping available inventory in view.
g) Procurement should be made with the concurrence of Circle IFA. The
quantities to be procured, should be recommended by the high power
Circle Committee consisting of IFA of Circle, GM(D), GM(O) &
DGM(MM) for approval of CGM.
h) The orders would be placed against sanctioned estimates and
approved budget and in a manner that supplies are received regularly
instead of bunching towards the end of the year.
i)
Powers for decentralized procurements are not to be further delegated
to the lower formations. The powers should be exercised by the Heads
of the Circles only.
j)
No ordering shall be done on the basis of tenders finalized and
purchase orders issued by either BSNL HQ or any other Circle except
in the cases where special authorization has been given by BSNL HQ.
k)
The reservation for Telecom Factory, ITI and HTL for certain items
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would continue till further orders. Specific quantities of the reservation

for these organizations shall be indicated by MM Cell based on their
manufacturing / supply capacity. However, for ITI, the maximum
reservation quantity will be 30% and if the item is reserved for both ITI
and HTL, the reserved quantity will be 35% to be distributed in the ratio
of 20:15 respectively subject to their manufacturing / supply capacity.
l)
The Telecom Circles will ensure proper and expeditious utilization of
the material procured by them.
m) The Circles will submit a report about procurement under the
decentralization scheme every six months in the prescribed formats as
Annexure-I & II (Copies enclosed). They shall convey details of
procurement made by them to the Planning Cells with budget details for
monitoring of progress. They will also send a copy of the orders placed
to the MM and Planning Cells of BSNL.
n) Any other rules/instructions on the procurement issued by the BSNL
shall be observed.
This issues with the approval of Competent Authority of BSNL Board.
17.3
Review of Decentralized procurement of DLC Equipment Reg.

[Jt. DDG (MMS) BSNL CO No. 60-8/2000-MMSDated 2-.05-02]
Various Telecom Circles from time to time have conveyed their difficulty in
finalization of Tenders for some of the items like DLC Equipment etc. owing
to availability of a very few eligible vendors and also in consideration of the
decision taken in the Heads of Circles meeting held on 10th & 12th April,
2002, it has been decided that henceforth procurement of DLC on SDH
shall be done centrally by BSNL Corporate office
The orders for decentralized procurement of DLC Equipment issued vide this
office letter of even no. dated 23.8.2001 stands withdrawn with immediate
effect. However following conditions will apply in respect of procurement
action already initiated by the Telecom Circles for DLC Equipment:
1.
The Telecom Circles which have already opened their tenders may
continue with the procurement process at their own level.
2.
However, in cases where only NIT has been issued and tenders are yet
to be opened, Circles are directed to withdraw the NIT & no
procurement action against NIT may be initiated. They are also advised
to send their requirements of DLC on SDH along with requisite
information to the Switching Planning Cell, BSNL Corporate office.
This issues with the approval of CMD, BSNL.
17.4
Review of Decentralized procurement of STM-1/ STM-4 & SDH

Analyzers Reg.
[Jt.DDG (MMS) BSNL CO No. 60-8/2000-MMS/423Dated19-06-02]
Page 143
In continuation to this office letter of even no. dated 27th May 2002 reverting
decentralized procurement of DLC on SDH to centralized procurement, it has
been decided that the BSNL Corporate office shall make the procurement of
following equipment centrally:
1. STM-1 and STM-4 Equipment
2. SDH Analyzers
However, following conditions will apply in respect of procurement action
already initiated by the Telecom Circles for the above equipment:
The Telecom Circles, which have already opened their tenders, may
continue with the procurement process at their own level.
However, in cases where only NIT has been issued and tenders are yet
to be opened, Circles are directed to withdraw the NIT & no procurement
action against NIT may be initiated. They are also advised to send their
requirements of STM-1, STM-4 equipment & SDH Analyzers alongwith
requisite information to the Transmission Planning Cell, BSNL Corporate
office.
This issues with the approval of CMD, BSNL and shall come into force with
immediate effect .
17.5 Decentralization of SMPS Power Plants and VRLA Battery of all sizes;
Reg.
[Jt.DDG (MMS) BSNL CO No.60-8/2000-MMS/365Dated 20-05-03]
(a) It has been decided that SMPS Power Plant and VRLA Batteries of all
sizes which were hitherto being procured by CGMTS, Kolkata centrally
stand decentralized for all Telecom Circles except for the designated
Circles viz. Assam, NE-I, NE-II, A & N, NFTF for which procurement shall
be continued by CGMTS, Kolkata with immediate effect.
All Telecom Circles, except the aforementioned designated Circles, can
now procure Power Plants/Battery of all sizes themselves under their
delegate financial powers.
(b) The procurement of these items shall be made as per the existing
guidelines issued by this office vide No.60-8/2001-MMS dated
21.6.2001.
(c) Availability of funds shall be ensured with the concurrence of IFAs.
Tender document/conditions shall be vetted by IFAs.
This issues with the approval of BSNL Board.
17.6
Clarification regarding acceptance of Single Tender Cases.

[ADG (WSF) BSNL CO No. 6-15/2000-EB(Pt.III) Dated0 8-04-05]
A letter was issued by MM Cell vide 51-1/04-MMC/696 dated 11.10.04
(Annex. ) whereby it was clarified that a similar case related to procurement
of switching equipment by Punjab Telecom Circle through open tender, in
which only one bidder was found techno commercially responsive was
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examined at HQ level. Instructions were issued with the concurrence of

Member (Finance), Telecom Commission vide letter No. 380-09/2000 TPS
(Inet) dated 5.5.2000 (annex. II) that a limited or single response to an open
tender will not be viewed as a case of single tender.
2. Meanwhile, WS` Cell had issued instructions vide letter of even number
dated 10.2.2005(annex.III) whereby it was mentioned that delegated
financial powers under item no. 17.3 Award of work by accepting single
tender where open tenders have been called for any and only one tender was
received should be exercised by invariably following Rule 441-C P&T
Manual Volume II.
3. Due to above two diverse instructions on the same issue, there was
confusion in field units on issue of manner for deciding Single Tender cases
and some references have been received in this regard.
The issue was brought before the Management Committee, which has
approved that :
Single tender cases should be decided as per the MM Cell instructions
issued vide letter No. 51-1/04-MMC/696 dated 11.1.0.04 (annex.I) which
clarifies that A limited or single response to an open tender will not be
viewed as a case of single tender, subject to condition that the competent
authority will approve the tender with the concurrence of his IFA after
satisfying himself/herself that the Tender Evaluation Committee has
recommended the case after verifying the following conditions:
(a) Wide publicity was given for the subject tender.
(b) Tender specifications are generic in nature
(c) Qualified bidder meets all the tender specifications, terms and condition
(d) Rates are reasonable
(e) All the guidelines/policies regarding procurement of telecom equipment
and stores in BSNL are observed.
In all such cases approval of single tender will be reported to the next higher
authority for information.
This letter supersedes our earlier letter of even number dated 10.2.2005. All
the field units are requested to follow the above instructions strictly for
deciding the single tender cases.
17.7 Formation of PNC
[AGM (MMY) BSNL CO No. 3-2/2007-MMTDated.13-04-09]
I have been directed to communicate the observation of CVC for
implementation in future tender as mentioned below :In a case, when on submission of CET report, competent authority decides
for negotiation and PNC is formed and further if renegotiation is considered
necessary and empowered committee is formed, the usual practice for
constitution of CET, PNC and empowered committee is from officers of the
same level. CVC observed in this case that empowered committee member
should be one level above.
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As such, where CET and PNC are formed under the Chairmanship of DGM
or below, then Empowered Committee members of one level above, may be
considered. However, only for cases where CET and PNC are formed under
the chairmanship of PGM/GM level then in these cases one level above will
be Directors of BSNL Board and it may not be appropriate to constitute the
higher Power Committee consisting of Director level. Therefore the same
committee in such case only may be allowed.
17.8 More Participation of OEMs in tenders
[AGM (MMY) BSNL CO No. 3-2/2007-MMT/Vol.I/Pt.I Dated 01-05-09]
I have been directed to communicate that stress should be laid for more and
more participation of OEMs in our tender. Whenever sufficient OEMs
participation is anticipated, eligibility conditions may be framed such that
OEMs only are allowed to participate. In case where it is felt that sufficient
prospective bidders in terms of OEMs would not be available then only they
should authorize not more than one front bidder to bid on their behalf.
17.9 Advertisement in NIT in newspapers
[AGM (MMY) BSNL CO No. 3-2/2007-MMT Dated12-06-09]
A clause on the subject is incorporated in Section-I (NIT) just below the
concise format in Procurement Manual mentioned as under and will have
immediate effect.
Clause in Procurement Manual :- The procedure for publication of NIT in
concise format in one National Daily with wide publication and Indian Trade
Journal, Kolkata along with its display in detail on BSNL website having a link
with NIC will be mandatory for a tender for and above thresh-hold value of
Rs.25 lakhs in case of procurement of goods/materials/equipments and
Rs.10 lakhs in case of tender for hiring of services. For tenders below
Rs.25 lakhs in case of procurement and below Rs.10 lakhs in case of hiring
of services, display of NIT on BSNL website with form downloadable facility
and sending it to minimum six eligible bidders will be mandatory.
17.10 Provision of a Penalty clause
[ADG (MMY) BSNL CO UO .No. 3-2/2004-MMT/Pt.III Dated 18-08-06]
The planning cells of BSNL Corporate office while processing the case of
procurement should make provision of a Penalty clause in the special
condition of the contract for delay in installation & Commissioning of the
turnkey projects.
This issues with the approval of Director (Plg. & NS).
17.11 Operating of Tender Rates of Other Units
[DOT No. 115-143/97-MMD Dated 24-04-99]
Instructions have been issued by DOT Hq. from time to time authorizing
Telecom Circles/ Districts etc. for procurement of a number of items on
decentralized purchase basis. Although concrete guidelines have been given
in such instructions, yet some of the circles have requested this office for
Page 146
permitting them to operate on tenders finalized by other circles in cases

where their own tenders land into some difficult situations on account of
unrealistic bids or litigation etc. Apart from this some of the circles have
desired to know where the retendering is to be applied on decentralized
items.
(ii) Request of Telecom Circles for operating on the tender of other Circles is not
accepted. A Circle is supposed to operate in all respects on its own tender.
Where however no bidder quotes in response to a Circles tender or where
there is stay/ ban by courts on total procurement by a particular Circle, such
cases are to be referred to DOT HQs/ CGMTS with recommendations/
justification on case to case basis for seeking suitable advice from DOT/
CGM (TS).
(iii) Introduction of Vendor rating by the Circles in their tenders may not be
applied for the time being.
17.12 Procurement of material/stores in emergent cases
[ADG (MMY) BSNL CO No. 3-2/2004-MMT/Pt.-II Dated 05.08/09-05]
It has been brought to the notice of BSNL H/Q by different field units that the
flow chart of Procurement existing in our Procurement Manual does not cater
for the procurement of materials/stores in limited time i.e. in emergent cases
such as meeting the needs in natural calamity and to provide specialized
services to valuable customers on demand in their specified time frame.
The case was examined in BSNL H/Q and the position is clarified as under :The time limits prescribed for various activities in the flow chart existing in the
Procurement Manual are the maximum limits. These can always be suitably
compressed by field units as per need and circumstances. In fact, every
effort must be made to finalize the tenders as early as possible. However, the
minimum time from issue of NIT to opening of tender may be kept as 21
(twenty one) days. Any clarification to the queries of any prospective bidder
may be replied at least one week before the date of tender opening.
Accordingly tenders may be finalized expeditiously.
17.13 Frequent violation of tender procedure Issue of instructions
Regarding.
[ADG (MMY) BSNL CO No. 3-2/2004-MMT/Pt.-II Dated 10-11-05]
Union Public Service Commission has adversely commented against the
violation of tender procedure in BSNL and emphasized the need of a
deterrent mechanism to check the possibility of any irregularity in purchase
of equipment/stores.
The BSNL has already updated its Manual of Procurement in the June 2003
to cope with the need of PSU taking care & incorporating views of various
field units, guidelines/instructions of CVC/DOT and other Govt. agencies and
issued to all field units, alongwith its availability on BSNL website for strict
adherence. The guidelines/instructions received from CVC and DOT are also
Page 147
issued to all field units from time to time and posted on BSNL website.
Once again it is reiterated to make all efforts for bringing transparency &
probity in purchase and strictly follow the norms stipulated in Procurement
Manual & Addendum/ Amendment issued thereof, and also guidelines/
instructions issued from this office regarding procurement, which can be
downloaded from BSNL website also for ready reference.
Responsibility should be fixed and deterrent action may be initiated for any
procedural lapse and deviation from norms of procurement. Matter may also
be reported to this office for information and further action if needed in the
matter.
This issues with the approval of competent authority.
17.14 Procedures to be followed while signing/ sending the files containing
agreements/ contracts etc., for the signature of the authorized
signatory.
[CS&GM(Legal) BSNL CO No. BSNL/SECTT./21-1/2002 Dated 03-04-07]
Ref:- Circulars of even number dated 7.11.2003, 16.4.2004, 30.6.2004,
18.1.2005, issuing guidelines on the above subject.
As all concerned are kindly aware, Powers of the Company are vested
in the Board, which are exercised by the Board in accordance with the
provisions of the Companies Act 1956, Memorandum and Articles of
Association of the Company and the guidelines issued by the
Government. Accordingly, the Board of Directors, for smooth
operation of the companys business, delegated some of the powers
of routine management to the officers below the Board level. Such of
the officers piloting the agreements/contracts are, responsible and
liable for ensuring performance of the obligations that may/will arise
from such agreements, contracts etc., in the paramount interest of the
Company. Therefore, vide the circulars of this unit, detailed procedural
compliance to be adopted by various units were issued time to time.
2.
With the introduction of the e-governance and compulsory e-filling of
statutory documents, (i) each of the Director of a Company has been
allotted a unique Director Identification Number [DIN]; and (ii) each of
the company registered under the provisions of the Companies Act
1956 has been assigned a unique Corporate Identity Number [CIN] by
the Ministry of Company Affairs. With this, now, quoting of the DIN and
CIN which are the unique numbers identifying the Directors and the
corporate entity - has become imperative in all the company related
statutory documents filed with the appropriate authorities.
3.
Agreements, Contracts and MoUs etc., are being entered
into/signed/proposed routinely. With a view to protect and further
strengthen the commercial interests of the BSNL, it has been decided
that, in future, in addition to the procedural requirements laid down
earlier, the piloting/nodal officers of such Agreements, Contracts,
MoUs shall also obtain the Director Identification Number [DIN] and
Page 148
A.
B.
the Corporate Identity Number [CIN] of such other body corporate and
place them in the respective files. For the sake of reference, the
procedural compliance to be followed is enclosed as Annexure A,
which needs to be followed conscientiously.
4.
This issues with the approval of Chairman and Managing Director
ENCL :As above.
ANNEXURE A
PROCEDURAL COMPLIANCE TO BE ENSURED BY EACH OF THE UNIT
PILOTING AGREEMENTS, CONTRACTS, MOUS TO BE ENTERED INTO
OR TO BE SIGNED WITH OTHER BODY[IES] CORPORATE
DOCUMENTS TO BE KEPT IN THE RESPECTIVE FILES
1.
A printed copy of the latest Annual Report of such Other Body
Corporate(s)/Firm(s) or Association(s) of Persons etc. with whom the
Agreement / MoU is contemplated to be entered into/to be signed, in
case the printed copy is not available, Xerox copy of the same duly
certified by the Company Secretary/Director/Managing Director/Partner
of such Company/Firm;
2.
An updated copy of the Memorandum of Association and Articles of
Association of the Company;
3.
List of all the Directors including their name(s) and address (es)
alongwith contact telephone numbers of office and residence;
4.
Certified true copy of the Boards Managements Resolution authorizing
the official of such other Body Corporate(s) / Firm(s) or Association of
Persons etc. to sign. Agreement/ Contract/ MoU on their behalf by the
such Other Body Corporate(s) / Firm(s) or Association of Persons etc.
to sign Agreement/ Contract/ MoU;
5.
Specimen signature(s) of such authorized official duly attested by such
Companys/Firms Banker; and
6.
Director Identification Number [DIN] of all the Directors of such other
body corporate; &
7.
Corporate Identity Number[CIN] of such other body corporate
ACTION TO BE COMPLETED BEFORE SIGNING/BEFORE SENDING THE
FILE
TO THE AUTHORISED SIGNATORY/DIRECTOR(S) FOR SIGNATURE
A self contained note, indicating the
(i) approval of the competent authority for the proposed agreement,
contract, expression of interest, MoU etc.,
(ii) certificate evidencing the receipt of the documents prescribed at [A]
above,
(iii) and a copy of the document duly initialed on each page by the head of
the respective nodal branch piloting/executing the agreement
concerned; and the signature of the such other bodys authorized
signatory duly witnessed, shall be sent, with the following certificate at
Page 149
the close of the note sheet:The unit concerned has satisfied itself with regard to
(i) the particulars of the entity with whom the agreement is proposed to be
entered into;
(ii) the authorization of the signatories of such other entity; and that,
(iii) the said document / agreement is in accordance with the draft approved
by the competent authority; and each page of the document has been
initialed by the CGM/ GM/ SR. DDG/ DDG. Further certified that the
officer next in charge has been briefed about the contents of the
agreements and the legal obligations/compliances to be fulfilled, so as
to protect the interests of the BSNL
[Annexure to Circular No. BSNL/ SECTT/ 21-1/2002, dated 03.04.2007]
Page 150
17.15 CVC Circulars regarding Negotiations

No.OFF-1-CTE-1(Pt.) VIII
Government of India
Central Vigilance Commission
Satarkta Bhawan, Block-A,
4th Floor, GPO Complex,
INA, New Delhi
Dated: 02 May, 2005
To
Shri Avinash Agarwal,
Jt. DDG (MMT),
Statesman House, Barakhamba Road,
New Delhi-110001
Sub: Procurement of Materials through open tender counter offers procedure.
Sir,
Please refer to your letter No.3-2/2004-MMT dated 9/10-3-2005 on the
subject cited above. In this connection, it is informed that the procedure
being adopted by BSNL in case order is to be placed on more than one
bidder, does not appear to be in order. Counter offer simultaneously to L-2,
L-3 bidders alongwith L-1 bidder is against the Commissions guidelines of
negotiations with L-1 bidder only. Further as per BSNL procedure, if lower
quoting firm backs out, inter-se ranking is recast and counter offer is made to
next eligible bidder in the ranking, while as per Commissions instructions, in
a situation where L-1 backs out re-tendering is to be done.
2.
It is therefore, advisable that even is case where order is to be placed on
more than one bidder, counter offer is initially made to L-1 bidder only. Only
after L-1 bidder accepts the counter offer, L-2 bidder is offered the counter
offered rate and so on.
3.
Please acknowledge the receipt.
Yours faithfully,
(P.K. Kanchan)
Technical Examiner
Page 151
No.OFF-1-CTE-1(Pt.) VIII
Government of India
Satarkta Bhawan, INA,
GPO Complex, Block-A
New Delhi:110023
Dated: 17 Aug, 2005
To
Shri Avinash Agarwal,
Jt. DDG (MMT),
Statesman House, B-148, Barakhamba Road,
New Delhi-110001
Sub: Procurement of Materials through open tender Counter offers Procedure.
Sir,
Please refer to your letter No.3-2/2004-MMT dated 5-7-2005 on the subject
cited above. In this connection, it is stated that the post tender negotiations
include counter offers also.
Yours faithfully,
(P.K. Kanchan)
Technical Examiner
For Chief Technical Examiner
Page 152

Bharat Sanchar Bhawan, Janpath
New Delhi-110001
(MMT Section)
F. No. 3-2/2004-MMT/Pt.-II
Dated: 27.07.2007
To
All Chief General Managers,
Telecom Circles/Telecom Districts/Telecom Projects/
Maintenance Regions/Task Force/Telecom Stores, Kolkata/
NCES/DATA Networks/Telecom Factories/
QA Circle/T&D Circle.
Subject:- Tender process Negotiations with L-1.
Kindly find enclosed herewith a Circular No. 4/3/07 of letter No.
005/CRD/012 dated 03.03.2007 from Central Vigilance Commission, Govt.
of India, Satarkta Bhawan, Block-A, GPO Complex, INA, New Delhi-110023
on the above cited subject for necessary action please.
Encl. As above.
(S.P. Singh)
ADG (MMY)
Copy for kind information to :
1. PS to CMD, BSNL Corporate Office, New Delhi.
2. Director (Plg. & NS)/(Operation)/(HRD)/C&M)/(Finance), BSNL CO.
3. All Sr. DDGs/DDGs of BSNL Corporate Office.
4. Jt. DDG (MMT)/(MMD)/(MMC)/(MMS)
5. ADG (MMX)
6. OSD to DDG (MM) for putting on BSNL Intranet.
7. Office Copy/Guard File.
Page 153
No.005/CRD/012
Government of India
Satarkta Bhawan, Block-A,
GPO Complex, INA
New Delhi- 110023
Dated the 3rd March, 2007
Circular No. 4/3/07
Sub:- Tendering process - negotiations with L-1.
Reference is invited to the Commissions circulars of even number, dated
25.10.2005 and 3.10.2006. on the above cited subject. In supersession of
the instructions contained therein, the following consolidated instructions are
issued with immediate effect:
(i) As post tender negotiations could often be a source of corruption, it is
directed that there should be no post-tender negotiations with L-1,
except in certain exceptional situations. Such exceptional situations
would include, procurement of proprietary items, items with limited
sources of supply and items where there is suspicion of a cartel
formation. The justification and details of such negotiations should be
duly recorded and documented without any loss of time.
(ii) In cases where a decision is taken to go for re-tendering due to the
unreasonableness of the quoted rates, but the requirements are urgent
and a re-tender for the entire requirement would delay the availability of
the item thus jeopardizing the essential operations, maintenance and
safety, negotiations would be permitted with L-1 bidder(s) for the supply
of a bare minimum quantity. The balance quantity should, however, be
procured expeditiously through a re-tender, following the normal
tendering process.
(iii) Negotiations should not be allowed to be misused as a tool for
bargaining with L-1 with dubious intentions or lead to delays in
decision-making. Convincing reasons must be recorded by the
authority recommending negotiations. Competent authority should
exercise due diligence while accepting a tender or ordering
negotiations or calling for a re-tender and a definite time frame should
be indicated so that the time taken for according requisite approvals for
the entire process of award of tenders does not exceed one month from
the date of submission of recommendations. In cases where the
proposal is to be approved at higher levels, a maximum of 15 days
should be assigned for clearance at each level. In no case should the
overall timeframe exceed the validity period of the tender and it should
be ensured that tenders are invariably finalized within their validity
period.
Page 154
2.
3.
(vi) As regards the splitting of quantities, some organizations have

expressed apprehension that pre-disclosing the distribution of
quantities in the bid document may not be feasible, as the capacity of
the L-1 firm may not be known in advance. It may be stated that if, after
due processing, it is discovered that the quantity to be ordered is for
more than what L-1 alone is capable of supplying and there was no
prior decision to split the quantities, then the quantity being finally
ordered should be distributed among the other bidders in a manner that
is fair, transparent and equitable. It is essentially in cases where the
organizations decide in advance to have more than one source of
supply (due to critical or vital nature of the item) that the Commission
insists on pre-disclosing the ratio of splitting the supply in the tender
itself. This must be followed scrupulously.
(v) Counter- offers to L-1, in order to arrive at an acceptable price, shall
amount to negotiations. However, any counter-offer thereafter to L-2,
L-3, etc., (at the rates accepted by L-1) in case of splitting of quantities,
as pre-disclosed in the tender, shall not be deemed to be a negotiation.
It is reiterated that in case L-1 backs-out, there should be a re-tender.
These instructions issue with the approval of the Commission and may
please be noted for immediate compliance.
(Vineet Mathur)
Deputy Secretary
All Chief Vigilance Officers
17.16 Staggering of tenders
(Letter No. 3-1/2003-MMT Dated 25.06.2003)
In pursuance of the efforts being made to bring total transparency in
tendering/procurement activity at all levels. I have been directed to
communicate the decision of the BSNL Corporate office that tenders for the
same item should be staggered in such a manner that next tender is opened
after the expiry of the scheduled delivery period of the first tender.
17.17 Evaluation Criteria in tenders
(Letter No. 3-2/2007-MMT Dated 16.11.2010)
A letter has been received from Central Vigilance Commission (CVC), New
Delhi regarding the evaluation criteria of the tender. The case has been
examined and I am directed to state that the tender process should be open
and transparent. The evaluation criteria for all future tenders should be
defined in clear and unambiguous manner and it should be clearly specified
in the tender document.
This issues with the approval of competent authority.
Page 155
18.
CHAPTER - 18
FLOWCHART OF PROCUREMENT PROCESS
Page 156
Page 157
Chapter 19
Guidelines for taking action against vendors who default
As all concerned are aware that the BSNL being an artificial juristic person/
legal entity, does its business through the Directors/ below Board level
Executives/ Officers, who exercise the powers vested in the company through
appropriate delegation of powers made by the Board of Directors, in
accordance with Companys Memorandum of Association and Articles of
Association and the Indian Companies Act and other applicable Government
instructions/ guidelines issued from time to time.
1.1 As part of business, the company enters into various kinds of Memorandum of
Understanding (s) (MoUs)/ Agreement (s)/ Contracts (s)/ Tender(s)/ APO(s)/
PO(s) etc., or other types of arrangements with various person (s)/ Bidder (s)/
Entity (ies)/ Supplier(s)/ Vendor(s)/ Contractor(s) etc. as the case be. These
Understanding(s) (MoUs)/ Agreements (s)/ Contract(s)/ Tender (s)/ APO(s)/
PO(s) etc., or other types of arrangements may pertain to any of the business
activity(ies) of the Company e.g. Procurement/ purchase of Goods/ Materials/
Equipments/ Software/ Services of various types such as Value Added
Services, Internet Data Centres, Call Centres, House Keeping and/ or Security
Services etc.
1.2 All such activities in the company are administered/ managed by Business
Heads in the Corporate Office; CGMs/ PGMs/ GMs and other Unit Heads of
the field units, who are responsible for Administration/ Management of the
particular activity, in the capacity of Risk Management Administrators (RMSs)
as designated by the Board of Directors in the ERM Policy of the Company as
the Nodal Officers, who are assisted by the Officer-in-charge of contract.
2.
While strict adherence to the stipulations of each such contract is a

pre-requisite, there are occasions, where deviations also take place. The
respective Officer-in-charge of the Contract working under branch head
(Nodal Officer), in whose jurisdiction a particular Agreement/ Understanding
etc. falls, is expected to monitor the progress of implementation of the
particular Agreement/ Understanding etc. to avoid a situation where BSNL
stands to lose its strength in getting the best performance from any such
contract.
3.
Needless to reiterate that Time is essence of each contract.
3.1 Therefore, for initiating action against any errant/ defaulting bidder/ vendor/
contractor it is required that details of the tender/ APO/ PO/ Contract are
available with the respective nodal Heads in the Corporate Office; CGMs/
PGMs/ GMs and other Unit Heads of the field units who are assisted by the
respective Officer-in-Charge of Contract and are responsible for
Page 158
Administration/ Management of the particular activity to substantiate or make

it a fit case for taking action against any defaulting contractor/ supplier etc.
4.0 In case any default is committed by a bidder/ vendor/ contractor, effort need be
made to notify him and give him chance to present his view point i.e. hear his
side. Adequate opportunity of hearing should be given and the explanation, if
tendered, should be considered before passing any order keeping in view the
facts and circumstances of the case.
4.1 In case his explanation is not found satisfactory then action need be taken to
safeguard the interest of BSNL and prevent participation of fraudulent/
non-performing vendors to ensure smooth operations of our procurement
process.
5.0 Different type of defaults committed by the vendors & actions to be
taken thereof:
The various types of defaults committed by the vendors and the actions to be
taken are indicated in Appendix-1 to Section 4A Chapter 4 of Procurement
Manual.
5.1 The actions against defaulting vendors can be broadly classified as:(i) Forfeiture of EMD/ SD/ PG;
(ii) Termination of contract;
(iii) Withdrawal of TSEC/ IA;
(iv) Banning of business dealings.
5.2 Banning of business with a defaulting vendor is warranted in case of
(i) breach of any contractual obligation;
(ii) Detection of an offence involving moral turpitude in relation to business
dealing; or
(iii) An offence of malpractices, etc. which, if established, will warrant
banning of business dealing.
6.0 Implementation of the guidelines:
6.1 The actions as given in column (C) for various defaults mentioned in column (B)
of Appendix-1 to section 4A of Chapter 4 will supersede all other provisions
mentioned in the Procurement Manual 2012.
6.2 These guidelines shall be applicable for all telecom Units of BSNL. These may
be followed by Civil, Electrical & Architectural Wing also wherever they are not
in contravention of the provisions given in CPWD Manual.
6.3 After issue of business banning order,
(a) In case any tender is under process of finalization then the offer/ bid of the
debarred vendor shall be rejected summarily and necessary action shall
be taken to finalize the tender (for full tendered quantity) with the
remaining vendors.
Page 159
(b) In case APO had been issued, then the APO shall be cancelled and
necessary action shall be taken to procure the tendered items/ material/
services (including L-1 quantity) from the remaining vendors.
(c) In case PO/ WO had been issued, then the PO/ WO shall be cancelled and
necessary action shall be taken as per relevant clause in Appendix-1 to
section 4 A of Chapter 4.
6.4 The business banning order issued by any tender inviting/ approving authority
will be effective for the area under his jurisdiction only.
6.4.1 However, if the tender inviting/ Approving authority finds that the defaulting
vendor should be barred for business in the area of his controlling officer also,
he shall send a self contained note, enclosing all relevant papers along with
his recommendations to his controlling officer for further action at their end.
6.4.2 The controlling officer shall examine the case from the point of view that the
default committed by the vendor justifies the action of his subordinate officer. If
satisfied, controlling officer will examine whether the default committed by the
vendor justifies banning in his area of operation also. In that case he will take
action to implement the business banning order in his area of operation.
6.5 Any complaint which has been investigated by the CBI, Vigilance wing or any
other Govt. investigating agency, on its own or as per the direction of the
competent authority and it is found that there is a need to ban the vendor, the
recommendation in this regard will be sent to the MM branch of the Circle/
BSNL corporate office through the Vigilance wing or the CVO BSNL, as the
case may be, for further necessary action.
6.6 The Court cases arising out of the banning orders issued will be dealt by the
tender inviting /approving authority (officer of his MM unit or any other officer
nominated by tender inviting/ approving authority).
7.0 Procedure for taking action against the defaulting vendor:
The procedure to be followed listing steps to be taken before proceeding
against the vendor is enclosed in Annexure-1. The required action shall be
taken by the unit in which the default is committed/ noticed. The tender
approving/ inviting authority will be the competent authority for approving the
action as mentioned in Appendix-1 to section 4A of Chapter 4.
8.0 Revocation of Orders:
8.1 A banning order passed for a specified period shall be deemed to have been
automatically revoked on the expiry of that specified period and it will not be
necessary to issue a specific formal order of revocation, except that a banning
order passed on consideration for defaults at S. No. 2, 6 & 7 of Appendix-1 to
section 4A of Chapter 4 and shall continue to remain in force until it is
specifically revoked by concerned tender inviting/ approving authority or his
controlling officer.
Page 160
9.0 If a banning order has been issued by an SSA then the appeal against banning
order shall lie with the CGM In charge of that Circle and if a banning order has
been approved by a Circle then appeal against the banning order shall lie with
CMD BSNL.
10.0 Maintenance of Up-to-date List:
Database in respect of all banned vendors, either banned by tender inviting /
approving authority (TIA) in the SSA, Circle or pan India basis, shall be
available on BSNL intranet portal.
10.1 Tender inviting authority while issuing orders for banning of business (and/ or
its revocation) shall endorse a copy to GM (MM) of BSNL C.O. who will be
responsible for updating/ maintaining the upto date list of banned vendors
along-with the period and area of banning on BSNL intranet portal.
11.0 Non Extension of Banning Orders to Allied/ Sister Concerns of a vendor:
The fact that a vendor is an allied concern of a banned vendor should not be
taken as a ground to prevent the allied/ sister concern of that vendor from
participation in BSNL tenders.
*****
Page 161
ANNEXURE-1
Sub: - Procedure to be followed for taking action against a vendor (in case of
deficiency stated in Para 1 of Appendix-1, Section 4A Chapter 4):
1. Vendor is found guilty of
(a) Submitting fake / forged Bank Instruments with the bid to meet terms &
condition of tender in respect of tender fee, EMD.
(b) Certificate for claiming exemption for the same and detection of default prior
to award of APO.
2. On noticing the default the executive in concerned unit inviting tender shall
issue a letter (with the approval of tender approving authority) to the vendor
asking him to explain his conduct on the noted default (Letter may be drafted
using sample draft enclosed at Annexure-1A).
3. On receipt of the written reply/ explanation of the vendor:
3.1 If reply is found to be satisfactory by the tender approving authority, then it may
drop the case.
3.2 In case either the explanation is not found satisfactory by the tender approving
authority or the vendor does not reply/ respond to the letter, a Notice asking
reasons/ justifications for the misconduct shall be served on the vendor. Giving
him 7 days time to respond (Notice may be drafted using sample draft enclosed
at Annexure-1B (i) or 1B (ii), as applicable).
4. On receipt of the written reply/ explanation stating reasons/ justifications for his
misconduct of the vendor:
4.1 If reasons/ justifications are found to be satisfactory by the tender approving
authority then it may drop the case.
4.2 If reasons/ justifications are not found acceptable by the tender approving
authority then it will take necessary action to issue Business banning/ barring
order. [Business banning/ barring order may be drafted using sample draft
enclosed at Draft at Annexure-1C (i)]
5. In the case the vendor does not reply/ respond to the notice, then the tender
approving authority will take necessary action to issue Business banning /
barring order. [Business banning/ barring order may be drafted using sample
draft enclosed at Draft at Annexure-1C (ii).
Note 1:- In case of other defaults listed in Appendix-1, Section 4A Chapter 4, tender
approving authority will take action in similar way as per above listed procedure.
Note 2:- The above penalties will be imposed provided it does not clash with the
provision of the respective tender.
Note 3:- In case of clash between these guidelines & provision of invited tender, the
provision in the respective tender shall prevail over these guidelines.
Page 162
ANNEXURE- 1A
Letter to vendor intimating deficiency & asking him to submit his reply
(Sample Draft)
Regd. AD

(A Govt. Of India Enterprise)
o/o.. (State full postal Address)

Tel. No.. Fax NoE-mail: ..
To,
M/s.
No. Dated.
Sub: Deficiency in EMD and/ or tender fee received from you.
Your Ref:- Offer/ bid received against BSNL tender no..opened
on. .for procurement of
We find that:
a) DD No. dated ... drawn on . (Bank & Branch)
received from you towards EMD and/ or tender fee along with your bid/ offer
against the above mentioned tender is fake/ forged.
b) This is based on the report received from (Designation
of officer) of .. .
(Banks name and address).
As a genuine bidder you are expected to submit a genuine bank instrument for
EMD which you have not done.
Kindly explain your conduct in this regard and submit a written reply.
Your reply should reach the undersigned within 7 days of receipt of this letter or
15 days from the date of issue of this letter.
Yours sincerely,
Signature
Name .
Designation: DGM
Copy to: - 2) O/c.
Page 163
ANNEXURE-1B (i)
Notice to vendor who has replied to the letter and his reply is not found satisfactory
by the Tender Inviting/ Approving Authority (Sample Draft)
Regd. AD

O/o.. (State full postal Address)

To,
M/s.
No. Dated.
NOTICE
Your Ref.: - 1) No.dated.. from ..
2) Offer/ bid received against BSNL tender no..opened
We are in receipt of your above referred letter explaining the reasons for
deficiency noted in DD submitted by you towards EMD and/ or tender fee against
our tender Noopened on..
We find that the reasons furnished by you in your reply for submission of fake
/ forged DD are not acceptable.
It will be relevant to mention that submission of fake / forged DD indicates
that you are not a trustable firm & invites penalty of banning of business dealing with
your firm.
You are hereby given a notice to submit your written reply indicating any
further reason/ justification for submission of fake/ forged DD.
Your reply should reach the undersigned within 7 days of receipt of this letter
or 15 days from the date of issue of this letter, failing which we will be constrained to
initiate action for banning of business dealing with your firm.
Yours sincerely,
Signature
Name .
Designation: DGM
Copy to: - 2) O/c.
Page 164
ANNEXURE-1B (ii)
Letter to vendor who has not replied to the letter issued by the Tender Inviting/
Approving Authority asking him to submit his written reply (Sample Draft)
Regd. AD


Tel. No.. Fax NoE-mail: ....
To,
M/s.
No. Dated.
NOTICE
Our Ref.:- Letter no. Dated . From .
Your Ref.: - 1) Offer/ bid received against BSNL tender no..opened
Kindly refer to our above mentioned letter wherein we had asked you to
explain your conduct on the deficiency noted by us in you offer/ bid.
We have not received any reply from you which implies that you accept the
error intimated to you and you have nothing to submit /say on the matter.
Submission of fake /forged DD as EMD and or tender fee is a grave default
from a responsible firm and invites serious penalties like banning of business
dealing.
You are hereby given a notice to submit your written reply indicating any
further reason/ justification for submission of fake /forged DD.
Your reply should reach the undersigned within 7 days of receipt of this letter
or 15 days from the issue of this letter, failing which we will be constrained to initiate
action for banning of business dealing with your firm.
Yours sincerely,
Signature
Name .
Designation: DGM
Copy to: - 2) O/c.
Page 165
ANNEXURE-1C (i)
Business banning order to vendor for submission of fake/ forged DD towards EMD
and or tender fee (in case written reply received against Notice is not acceptable)
(Sample Draft)
Regd. AD


..
To,
M/s.
No. Dated.
Sub: Banning of business dealing with your firm.
Your Ref: 1) No.dated.. from ..
2) Offer/ bid received against BSNL tender no..opened
We are in receipt of your reply vide above mentioned letter in response to our
Notice intimating deficiency in EMD and/ or tender fee received from you.
We find that the reasons/ justifications furnished by you in your reply for
submission of fake / forged DD are not acceptable and warrant necessary action as
per policy of BSNL.
I am directed to intimate that the competent authority has found the deficiency
to be serious and thereby decided to ban business dealings with your firm for a
period of three years which will be effective from.(date) which may
please be noted.
Yours sincerely,
Signature
Name
Designation: DGM ..
Copy to: - 2) O/c.
3) GM (MM), BSNL CO, New Delhi for infn.
Page 166
ANNEXURE-1 C (ii)
Business banning order to vendor for submission of fake/ forged DD towards EMD
and or tender fee (in case written reply against Notice is not received)
(Sample Draft)
Regd. AD


To,
M/s.
No. Dated.
Sub: Banning of business dealing with your firm.
Our Ref.:- Notice no. Dated . From .
Your Ref: 1) Offer/ bid received against BSNL tender no..opened
Kindly refer to our above mentioned Notice wherein we had asked you to
submit your written reply indicating reason/ justification on the deficiency intimated
to you in your offer/ bid.
We have not received any reply from you against our notice under reference
which implies that you accept the default committed by you and you have nothing to
say/ submit further.
I am directed to intimate that the competent authority has found the deficiency
to be serious and thereby decided to ban business dealings with your firm for a
period of three years which will be effective from.(date) which may
please be noted.
Yours sincerely,
Signature
Name
Designation: DGM
Copy to: - 2) O/c.
3) GM (MM), BSNL CO, New Delhi for infn.
*****
Page 167
Appendix-1 to Section 4 Part A of Chapter 4 (Standard Tender

Enquiry Document)
S.
No.
A
1(a)
Defaults of the bidder / vendor.
Action to be taken
B
Submitting fake / forged
C
i) Rejection of tender bid of respective
Vendor.
ii) Banning of business for 3 years
a) Bank Instruments with the bid
which implies barring further dealing
to meet terms & condition of
with the vendor for procurement of
tender in respect of tender fee
Goods & Services including
and/ or EMD;
participation in future tenders invited by
BSNL for 3 years from date of issue of
b) Certificate for claiming
exemption in respect of tender fee banning order.
iii) Termination/ Short Closure of
and/ or EMD;
PO/WO, if issued. This implies
non-acceptance of further supplies /
and detection of default at any
work & services except to make the
stage from receipt of bids till
already received material work/
award of APO/ issue of PO/WO.
complete work in hand.
Note 1:- However, in this case the performance guarantee if alright will not
be forfeited.
Note 2:- Payment for already received supplies/ completed work shall be
made as per terms & conditions of PO/ WO.
1(b)
Submitting fake / forged

documents towards meeting
eligibility criteria such as
experience capability, supply
proof, registration with Sales Tax,
Income Tax departments etc and
as supporting documents towards
other terms & conditions with the
bid to meet terms & condition of
tender :
(i) If detection of default is prior
to award of APO
i) Rejection of Bid &

ii) Forfeiture of EMD.
(ii) If detection of default after

i) Cancellation of APO ,
issue of APO but before receipt of ii) Rejection of Bid &
PG/ SD (DD,BG etc.)
iii) Forfeiture of EMD.
Page 168
S.
No.
A
1(b)
cont
d.
Action to be taken
B
(iii) If detection of default after
receipt of PG/ SD (DD,BG etc.) .
C
i) Cancellation of APO
ii) Rejection of Bid &
iii) Forfeiture of PG/ SD.
However on realization of PG/ SD
amount, EMD, if not already released
shall be returned.
(iv) If detection of default after

issue of PO/ WO
i) Termination/ Short Closure of

PO/WO and Cancellation of APO
ii) Rejection of Bid &
iii) Forfeiture of PG/ SD.
However on realization of PG/ SD
amount, EMD, if not released shall be
returned.
Note 3:- However, settle bills for the material received in correct quantity
and quality if pending items do not affect working or use of supplied items.
Note 4:- No further supplies are to be accepted except that required to

make the already supplied items work.
If vendor or his representative
uses violent/ coercive means viz.
Physical / Verbal means to
threatens BSNL Executive /
employees and/ or obstruct him
from functioning in discharge of
his duties & responsibilities for the Banning of business for 3 years which
following :
implies Barring further dealing with the
vendor for procurement of Goods &
a) Obstructing functioning of
Services including participation in
tender opening executives of
BSNL in receipt/ opening of tender future tenders invited by BSNL for 3
years from date of issue of banning
bids from prospective Bidders,
order.
suppliers/ Contractors.
b) Obstructing/ Threatening other
prospective bidders i.e. suppliers/
Contractors from entering the
tender venue and/ or submitting
their tender bid freely.
Non-receipt of acceptance of
Forfeiture of EMD.
APO/ AWO and SD/ PG by L-1
bidder within time period specified
in APO/ AWO.
Page 169
S.
No.
A
4.1
Action to be taken
B
Failure to supply and/ or
Commission the equipment and
/or execution of the work at all
even in extended delivery
schedules, if granted against PO/
WO.
C
i) Termination of PO/ WO.
ii) Under take purchase/ work at the
& cost of defaulting vendor.
risk
iii) Recover the excess charges if
incurred from the PG/ SD and
outstanding bills of the defaulting
Vendor.
i) Short Closure of PO/ WO to the
quantity already received by and/ or
commissioned in BSNL and/ or in
pipeline provided the same is usable
and/or the Vendor promises to make it
usable.
ii) Under take purchase/ work for
balance quantity at the risk & cost of
defaulting vendor.
iii) Recover the excess charges if
incurred from the PG/ SD and
outstanding bills of the defaulting
Vendor.
4.2
Failure to supply and/ or

Commission the equipment and
/or execution of the Work in full
even in extended delivery
schedules, if granted against PO/
WO.
5.1
The supplied equipment does not

perform satisfactory in the field in
accordance with the specifications
mentioned in the PO/
WO/Contract.
i) If the material is not at all

acceptable, then return the
non-acceptable material (or its part) &
recover its cost, if paid, from the o/s
bills/ PG/ SD.
OR
ii) If the material is inducted in network
& it is not possible to return it and/ or
material is acceptable with degraded
performance, the purchaser may
determine the price for degraded
equipment (Financial penalty = Price
price determined for degraded
equipment) himself and/ or through a
committee.
Undertake recovery of financial penalty
from outstanding dues of vendor
including PG/ SD.
Page 170
S.
No.
A
5.2
Action to be taken
B
Major quality problems (as
established by a joint team /
committee of User unit(s) and QA
Circle) / performance problems
and non-rectification of defects
(based on reports of field units
and QA circle).
C
i) If the material is not at all
acceptable, then return the
non-acceptable material (or its part) &
recover its cost, if paid, from the o/s
bills/ PG/ SD;
OR
ii) If the material is inducted in network
& it is not possible to return it and/ or
material is acceptable with degraded
committee.
including PG/ SD;
and
iii) Withdrawal of TSEC/ IA issued by
QA Circle.
i) Recovery of over payment from the
outstanding dues of Vendor including
EMD/ PG & SD etc. and by invoking
Set off clause 21 of Section 5 Part A
or by any other legal tenable manner.
ii) Banning of Business for 3 years
from date of issue of banning order or
till the date of recovery of over payment
in full, whichever is later.
Submission of claims to BSNL

against a contract
(a) for amount already paid by
BSNL .
(b) for Quantity in excess of that
supplied by Vendor to BSNL.
c) for unit rate and/ or amount

higher than that approved by
BSNL for that purchase.
Note 5:- The claims may be submitted with or without collusion of BSNL
Executive/ employees.
Note 6:- This penalty will be imposed irrespective of the fact that payment
is disbursed by BSNL or not.
i) Termination of PO/ WO.
Network Security/ Safety/
Privacy:- If the vendor tampers
with the hardware, software/
firmware or in any other way that with the vendor for procurement of
a) Adversely affects the normal
working of BSNL equipment(s) BSNL for 3 years from date of issue of
and/ or any other TSP through banning order.
BSNL.
iii) Recovery of any loss incurred on
this account from the Vendor from its
PG/ SD/ O/s bills etc.
Page 171
S.
No.
A
7
contd.

B
b) Disrupts/ Sabotages
functioning of the BSNL
network equipments such as
exchanges, BTS, BSC/ MSC,
Control equipment including IN
etc., transmission equipments
but not limited to these
elements and/ or any other
TSP through BSNL.
c) tampers with the billing related
data/ invoicing/ account of the
Customer/ User(s) of BSNL
and/ or any other TSP(s).
d) hacks the account of BSNL
Customer for unauthorized use
i.e. to threaten others/ spread
improper news etc.
e) undertakes any action that
affects/ endangers the security
of India.
If the vendor is declared bankrupt
or insolvent or its financial position
has become unsound and in case
of a limited company, if it is wound
up or it is liquidated.
Action to be taken
C
( Continued from page 178)
iv) Legal action will be initiated by
BSNL against the Vendor if required.
i) Termination/ Short Closure of the

PO/ WO.
ii) Settle bills for the quantity received
in correct quantity and quality if
pending items do not affect working or
use of supplied items.
iii) No further supplies are to be
accepted except that required to make
the already supplied items work.
iv) In case of turnkey projects, If the
material is commissioned and is usable
without any degradation of
performance, then settle bills for the
acceptable equipment/ material (or its
part).
v) In case of turnkey projects, if the
material is inducted in network & it is
not possible to return it and/ or material
is acceptable with degraded
committee. (continues to page 173)
Page 172
S.
No.
A
8
contd.
Action to be taken
C
including PG/ SD.
In the event of the vendor, its

proprietor, Director(s), partner(s)
is / are convicted by a Court of
Law following prosecution for
offences involving moral turpitude
in relation to the business
dealings.
10
If the vendor does not return/

refuses to return BSNLs dues:
i) Termination/ Short Closure of the

PO/ WO.
ii) Settle bills for the material received
in correct quantity and quality if
pending items do not affect working or
use of supplied items.
iii) No further supplies are to be
accepted except that required to make
the already supplied items work.
iv) In case of turnkey projects, If the
material is commissioned and is usable
without any degradation of
performance, then settle bills for the
acceptable equipment/ material (or its
part).
v) In case of turnkey projects, If the
material is inducted in network & it is
not possible to return it and/ or material
is acceptable with degraded
committee.
including PG/ SD.
i) Take action to appoint Arbitrator to
adjudicate the dispute.
a) inspite of order of Arbitrator.
i) Termination of contract, if any.

BSNL from date of issue of banning
order or till the date by which vendor
clears the BSNLs dues, whichever is
later.
(continues to page 174)
Page 173
S.
No.
A
10
contd.

B
b) inspite of Court Orders.
11
If the Central Bureau of

Investigation/ Independent
External Monitor (IEM) / Income
Tax/ Sales Tax/ Excise / Custom
Departments recommends such a
course
12
The following cases may also be

considered for Banning of
business:
(a) If there is strong justification for
believing that the proprietor,
manager, MD, Director, partner,
employee or representative of the
vendor/ supplier has been guilty of
malpractices such as bribery,
corruption, fraud, substitution of
tenders, interpolation,
misrepresentation with respect to
the contract in question.
(b) If the vendor/ supplier fails to
execute a contract or fails to
execute it satisfactorily beyond
the provisions of Para 4.1 & 4.2.
Action to be taken
C
iii) Take legal recourse i.e. filing
recovery suite in appropriate court.
i) Termination of contract, if any.
BSNL from date of issue of banning
order or till the date by which vendor
clears the BSNLs dues, whichever is
later.
Take Action as per the directions of
CBI or concerned department.
i) Banning of business for 3 years

which implies Barring further dealing
BSNL for 3 years from date of issue of
banning order.
(c) If the vendor/ supplier fails to

submit required documents/
information, where required.
(d) Any other ground which in
the opinion of BSNL is just and
proper to order for banning of
business dealing with a vendor/
supplier.
Page 174
Note 7: The above penalties will be imposed provided it does not clash with the
provision of the respective tender.
Note 8:-In case of clash between these guidelines & provision of invited tender,
the provision in the respective tender shall prevail over these guidelines.
Note 9: Banning of Business dealing order shall not have any effect on the
existing/ ongoing works/ AMC / CAMC which will continue along with
settlement of Bills.
*****
Page 175

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Revised Proc Manual 2012 DT 18032014

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BHARAT SANCHAR NIGAM LIMITED

(A Government of India Enterprise)

(Corrected upto 20th March 2014)

BSNL Revised Procurement Manual 2012

Negotiations Route ...................................................................................... 6

Limited tender Route ................................................................................... 6

Expression of Interest Route ....................................................................... 7

Managed Services and Managed Capacity Route ...................................... 7

Rate Contract Route.................................................................................... 8

CHAPTER - 2.................................................................................................... 9-14

Need/ Quantity ............................................................................................ 9

Forecasting Methods ................................................................................. 10

Estimated Rates ........................................................................................ 11

Deciding the Eligibility Criteria ................................................................... 11

Guidelines for Framing the Specifications and Technical Requirements... 11

Schedule of Requirement (SOR) ............................................................... 13

Special Instructions to Bidders and Special Conditions of Contract .......... 13

Authorities competent to purchase goods and their Purchase Powers ..... 13

2.10. Check-List for Requisition for Procurement of Material ............................. 13

Standard Tender Enquiry Document ......................................................... 15

Section-1Detailed Notice Inviting Tender (DNIT)& Newspaper NIT.. ...... 16

Section-2 Tender Information ..............................................................17

Section-3Scope of work, Tech. Specs./ Requirements & SOR.. 17

Section-4 A - General Instructions to Bidders(GIB)...18

Section-4 B - Special Instructions to Bidders (SIB) .................................. 18

Section-5 AGeneral (Commercial) Conditions of Contract (GCC) ....... ..20

Section-5 B Special (Commercial) Conditions of Contract (SCC)...20

BSNL Revised Procurement Manual 2012

3.10. Section 9 Price Schedule ....................................................................... 23

BSNL Revised Procurement Manual 2012

CHAPTER-5 - BID BOND GUARANTEE OR EARNEST MONEY DEPOSIT

APPENDIX-1 TO SECTION 4 PART A UNDER CHAPTER 4 for

BSNL Revised Procurement Manual 2012

BSNL Revised Procurement Manual 2012

1.1.6. With the formation of BSNL as a corporate entity in a Liberalized Telecom

1.3. Limited tender Route

Expression of Interest Route

Managed Services and Managed Capacity Route

BSNL Revised Procurement Manual 2012

Rate Contract Route

BSNL Revised Procurement Manual 2012

BSNL Revised Procurement Manual 2012

2.4. Estimated Rates

Guidelines for Framing the Specifications and Technical Requirements

BSNL Revised Procurement Manual 2012

TEC GR suiting to the actual BSNL network requirements.

Schedule of Requirement (SOR)

Special Instructions to Bidders and Special Conditions of Contract

Authorities competent to purchase goods and their Purchase Powers

2.10. Check-List of Items in a Requisition for Procurement of Material

Evaluation of Tender on package basis/ individual

This issues with the approval of PGM ( ) / GM (

)/ concerned head of User Unit

BSNL Revised Procurement Manual 2012

Technical Specifications/ Requirements

General Instructions to Bidders(GIB)

Special Instructions to Bidders(SIB)

E-tendering Instructions to Bidders (If applicable)

General (Commercial) Conditions of Contract (GCC)

Special (Commercial) Conditions of Contract (SCC)

General Conditions of AMC ( If applicable)

BSNL Revised Procurement Manual 2012

Undertaking & declaration