Chapter - 3

GUIDELINES ON
TENDERS/USE OF
WEBSITE
Sl. Subject Date of Issue Page
No. No.
91. Promotion of Govt. Servants against whom 14/06/2002 140
Preliminary inquiries...
92. Video Taping of evidence 11/02/2002 141
93. Ensuring attendance by private witnesses in 02/11/2001 142
Departmental Inquiries
94. Utilising the services of Retired Government 10/09/2001 143
Officer as Inquiry Officer in the disciplinary
proceedings against the employees of
Banks/PSUs
95. Trackling Corruption Through A proper Follow 25/04/2001 144
up of Audit Reports
96. Advance copy of CVO investigation report to 16/01/2001 145
CVC
97. Suspension of public servants involved in 25/09/2000 146
criminal/departmental proceedings
98. Powers and functions of the Central Vigilance 07/04/2000 149
Commission in relation to autonomous bodies
other than the public sector undertakings’
under various Ministries/Departments
99. Drafting of Charge-sheet 05/10/1999 150
100. Utilising the services of retired officers for 16/09/1999 153
conducting Departmental Inquiries.
.. Terms and Conditions for Appointing retired ..
Officers as Inquiry Officers
101. Sanction of Prosecution 27/11/1998 156
102. Action on CBI report - comments reg. 12/03/1998 158
Chapter 3 - Tenders/Use of website
Mobilization Advance

103. Mobilization Advance 17/02/2011 159

104. Mobilization Advance 05/02/2008 160
105. Mobilization Advance 10/04/2007 161
106. Mobilization Advance 08/06/2004 163
107. Grant of interest free mobilization advance 08/10/1997 164
Integrity Pact
108. Adoption of Integrity Pact (SOP)-Reg. 13/08/2010 165
Integrity Pact - Selection and 19/04/2010
109. Recommendation 166

110. Adoption of Integrity Pact-Periodical regarding 11/08/2009 167

111. Adoption of Integrity Pact-Standard Operating 18/05/2009 168
Procedure-reg Integrity Pact (Revised)
112. Adoption of Integrity Pact in major 05/08/2008 174
Government procurement
v
Sl. Subject Date of Issue Page
113.
No. No.
113 Adoption of Integrity Pact in major 19/05/2008 176
Government Procurement
114. Adoption of Integrity Pact in major Govt 28/12/2007 177
Procurement Activities
115. Adoption of Integrity Pact in major Govt. 04/12/2007 178
Procurement Activities
Tendering Process and use of Leveraging Technology
116. Recoveries arising out of intensive 12/09/2011 186
examination conducted by Chief Technical
Examiner Organisation (CTEO) of the
commission
117. Intensive Examination of CTE - Steps for early 11/08/2009 187
finalisation
Intensive Examination of works by CTE’s 10/11/2005 191
118. Organisation
16/05/2005 193
119. Intensive Examination of works by CTE’s
Organization-Submission of Quarterly
Progress Report
120. Design Mix Concrete 07/10/2010 194
121. A c c e p t a n c e o f B a n k G u a r a n t e e s . . . 31/12/2007 195
Use of products with standard specifications
122. Undertaking by Members of Tender 09/12/2005 197
Committee
123. Turnkey contracts for net-working of 03/11/2004 198
Computer Systems
124. Transparency in Tendering System 01/02/2011 199
125. Transparency in works/purchase/consultancy 19/05/2010 201
126. Transparency in works/purchase/consultancy 05/07/2007 202
contracts awarded on nomination basis(Office
Order No 23-07-07)
127. Transparency in Contracts awarded on 09/05/2006 204
Nomination Basis
128. Transparency in tendering system-Guidelines 06/11/2008 205
regarding
129. Time bound processing of procurement 10/12/2004 206
130. Tendering Process Negotiations with LI 20/01/2010
131. Tendering process - Negotiations with L-I 207
03/03/2007 208
132. Tendering process - Negotiation with LI 03/10/2006
133. Tendering process - Negotiation with L-I 210
25/10/2005 211
134. Issues pertaining to negotiation with L-I 16/05/2005
135. Issues pertaining to negotiation with L-I 212
12/04/2005 213
136. Improving Vigilance Administration(L1)(L1) 18/11/1998
137. Review of purchase preference policy 214
09/11/2009 218
138. Referring cases of Procurement to the 24/07/2008
Commission 221
139. Receipt and Opening of Tenders 08/06/2004 222
vi
Sl. Subject Date of Issue Page
No. No.
140. P u r c h a s e o f C o m p u t e r s b y G o v t . 05/05/2003 223
Departments/Organisations
141. Pre-qualification Criteria (PQ) 07/05/2004 225
142. Pre-qualification Criteria (PQ) 17/12/2002 226
143. P o s t i n g o f d e t a i l s o n a w a r d o f 14/07/2009 230
tenders/contracts on websites
144. P o s t i n g o f d e t a i l s o n a w a r d o f 01/09/2006 231
tenders/contracts on websites/bulletins.
145. Notice inviting tenders 24/03/2005 232
146. Participation of consultants in tender 24/12/2004 233
147. Measures to curb the menace of counterfeit 15/02/2008 234
and refurbished IT products
148. Leveraging of Technology for Improving 23/06/2010 239
Vigilance
149. Leveraging Technology - e-payment and 20/10/2004 240
e-receipt
150. Irregularities in the award of contracts 04/09/2003 242
151. Irregularities/lapses observed in the 12/11/1982 243
construction works undertaken by Public
sector undertakings/banks
152. Increasing transparency in procurement 11/02/2004 245
Tender process- Use of website reg
... Solution for Hosting of Signed Documents .. 246
Technical note from National Informatics
Center
153. Use of web-site in Govt. procurement or tender 12/03/2003 247
process
154. I m p r o v i n g Vi g i l a n c e A d m i n i s t r a t i o n - 03/08/2001 248
Tenders(HI)
155. Improving Vigilance Administration-Tenders 24/08/2000 249
156. Improving Vigilance Administration-Tenders 15/03/1999 251
157. Central Vigilance Commission’s Directives on 13/07/2004 252
Use of Website in Public Tenders
158. Improving Vigilance Administration: Increasing 02/07/2004 253
Transparency in procurement/sale etc. - Use
of website
159. Improving Vigilance Administration-Increasing 06/04/2004 256
Transparency and Cutting Delays by
e-payments and e-receipt by Govt.
Organisations
160. Improving vigilance Administration Increasing 09/02/2004 258
transparency in procurement/sale (Use of
website reg)
161. Improving vigilance Administration: Increasing 18/12/2003 259
Transparency in Procurement/Sale etc.
162. Improving vigilance administration by 18/04/2007 261
leveraging technology
163. Improving vigilance administration by 22/11/2006 263
leveraging technology
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Sl. Subject Date of Issue Page
No. No.
164. Implementation of e-tendering solution-Checklist 26/04/2010 267
165. Implementation of e - tendering solutions 17/09/2009 270
166. Implementation of e-tendering solutions 13/01/2009 276
167. Examination of Public Procurement Contracts 01/05/2006 277
by CVOs
168. E-procurement/Reverse Auction 11/09/2003 280
169. Details on award of tender 20/09/2005 281
170. Details on award of tenders/contracts Publishing 28/07/2005 282
171. Details on award of tenders/contracts...
172. Delays in payments to contractors 16/03/2005 283
173. Consideration of Indian Agents 10/03/2005 285
174. Consideration of Indian Agents 21/04/2004 287
175. Banning of business dealing with firms 07/01/2003 288
176. Back to back tie up by PSUs 24/03/2005 289
177. Tender sample Clause 20/10/2003 290
178. Short-comings in bid documents 15/10/2003 292
179. A p p l i c a b i l i t y o f C V C ’ s i n s t r u c t i o n 09/07/2003 293
No.8(1)(h)/98(1) dated 18/11/98 on post-tender 01/10/1999 294
negotiations to Projects of the World Bank &
other international funding agencies

Chapter 4 - Miscellaneous
General
180. METRICS TO MEASURE VIGILANCE .. 296
AWARENESS
181. Appointment of CVOs/VOs in Organizations 09/02/2011
other than Ministries/Departments/PSU/PSB 297
etc
182. ALL CVOs-Intimate Email Ids, Contact details 27/10/2010 298
183. Disclosure of movement/tour details of the 15/07/2010 299
officers
184. Monthly/Quarterly structured meetings for 05/03/2010 301
review of vigilance work - reg.
185. Re-constitution of the Vigilance Advisory 21/04/2010 302
Council-regarding
186. Forensic Sciences - Capabilities 16/03/2010 303
187. Role of Civil Service in good governance 03/03/2010 304
regarding
188. Additional Charges of CVOs 29/10/2009 305
189. Display of standard notice board by 05/06/2009 306
Departments/ Organizations
190. Issue of internal guidelines/circulars by 28/04/2008 308
organizations for vigilance administration
191. Entrusting of additional charges(s) to Board- 15/02/2008 309
Level functionaries
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 No. 4CC-1-CTE-2
Government of India
Central Vigilance Commission
(CTEs Organisation)

Satarkta Bhawan,
INA Colony,
New Delhi- 110023

Dated: 8.6.2004

OFFICE MEMORANDUM

Sub: Mobilization Advance

*********
In order to address the problem of misuse of mobilization advance provision
in the civil and other works, the Commission had issued an O.M. dt.
8.12.1997 for grant of interest bearing ‘Mobilization Advance’ in selected
works. In view of references from certain organizations on this issue, the
Commission has reviewed the issue and it has been decided to modify and
add the following provisions in the existing O.M. This may be read as
addendum to the Commission’s O.M. dt. 8.12.1997.

(i) If the advance is to be given, it should be expressly stated in the

NIT/Bid Documents, indicating the amount, rate of interest and
submission of BG of equivalent amount.

(ii) The advance payment may be released in stages depending upon the
progress of the work and mobilization of required equipments etc.

(iii) There should be a provision in the contract for adjustment of advance

progressively even as the bills are cleared for payment.

Sd/-
(Gyaneshwar Tyagi)
Technical Examiner
Copy to: -

All CVOs: Ministries/Departments/PSUs/Banks/UTs

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 004/ORD/8
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block ‘A’,

GPO Complex, INA,
New Delhi-110023
Dated, the 3rd Nov., 2004

Office Order No. 69/11/04

Subject:- Turnkey contracts for net-working of computer systems.

The Commission has been receiving complaints that in turnkey

contracts for net-working of computer systems a lot of unrelated products are
being included in the contracts which are either not required or which are
stand alone in nature and can be procured separately at much lower cost.
Inclusion of these unrelated items creates opportunities for malpractices. The
Commission is of the view that wherever possible it will be advisable to take
an independent third party view about the scope of turnkey projects so that
the tendency to include unrelated products as part of the turnkey project is
avoided.

Sd/-
(Balwinder Singh)
Additional Secretary

To,

All CMDs & CVOs of All Public Sector Banks.

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 No.004/ORD/9
Government of India
Central Vigilance Commission
*****
Satarkta Bhawan, Block ‘A’,
GPO Complex, INA,
New Delhi- 110 023
Dated the 10th December, 2004

Office Order No. 72/12/04

Subject:- Transparency in tenderi ng system- Guidelines regarding.

In order to maintain transparency and fairness, it would be appropriate that

organisations should evolve a practice of finalizing the acceptability of the bidding
firms in respect of the qualifying criteria before or during holding technical
negotiations with him. Obtaining revised price bids from the firms, which do not meet
the qualification criteria, would be incorrect. Therefore the exercise of shortlisting of
the qualifying firms must be completed prior to seeking the revised price bids.
Moreover, the intimation of rejection to the firms whose bids have been evaluated
but found not to meet the qualification criteria, along with the return of the un-opened
price bid, will enhance transparency and plug the loop-holes in the tendering system.
All organisations/departments are advised to frame a policy accordingly.

Sd/-
(Anjana Dube)
Deputy Secretary

All Chief Vigilance Officers

205
 No.008NGLl083
GovernmentofIndia
CentralVigilanceCommission
*****

Satarkta Shawan, Siock'A',

GPOComplex, INA,
NewDelhi-110023
Datedthe6thNovember 2008

Circular No.31/11/08

Subject: Time bound processing of procurement.

The Commission hasobservedthatattimes theprocessing oftenders

is inordinately delayed which may result intime and cost overruns and also invite
criticism from theTrade Sector. It is,therefore, essential that tenders arefinalized
and contracts are awarded in a time bound manner within original validity of the
tender, without seeking further extension of validity. While a short validity period
callsfor prompt finalization by observing specific time-line for processing, a longer
validity period hasthe disadvantage ofvendors loadingtheir offers inanticipation of
likelyincrease incosts during the period. Hence, itis important to fixthe period of
validitywithutmostcare.

2. The Commission would, therefore, advisetheorganizations concerned

tofix a reasonable time for the bidsto remainvalid while issuing tender enquiries,
keepinginviewthecomplexity ofthetender,timerequiredfor processing thetender
and seeking the approval of the Competent Authority, etc., and to ensure the
finalization of tender within the stipulated original validity. Any delay, which is not
due to unforeseen circumstances, should be viewed seriously and prompt action
shouldbeinitiatedagainstthosefoundresponsiblefornon-performance.

3. Cases requiring extension of validity should be rare. And in the

exceptionalsituationswherethevalidityperiodissoughttobeextended, itshould be
imperative to bring on record in real time, valid and logical grounds, justifying
extensionofthesaidvalidity.

instructions maypleasebenotedforimmediate compliance.

~
(Shalini Darbari)
Director

AllChiefVigilanceOfficers

4. These 206
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 IMMEDIATE

No. 8(1)(h)/98(1)
CENTRAL VIGILANCE COMMISSION
………

Jaisalmer House, Man Singh Road,

New Delhi – 110011
Dated the 18th November, 1998

SUB: Improving vigilance administration

……

The Central Vigilance Commission Ordinance 1998 under Section

8(1)(h) directs that the power and function of the CVC will be the following:

“exercise superintendence over the vigilance administration of the various

Ministries of the Central Government or corporations established by or
under any Central Act, Government companies, societies and local
authorities owned or controlled by that Government”.

2. Improving vigilance administration is possible only if system

improvements are made to prevent the possibilities of corruption and also
encourage a culture of honesty. In exercise of the powers conferred on the CVC
by Section 8(1)(h), the following instructions are issued for compliance:

2.1 Creating a culture of honesty

Many organisations have a reputation for corruption. The junior

employees and officers who join the organisations hopefully may not be so
corruption minded as those who have already been part of the corrupt system.
In order to ensure that a culture of honesty is encouraged and the junior officers
do not have the excuse that because their seniors are corrupt, that they have to
also adopt the corrupt practices, it is decided with immediate effect that junior
employees who initiate any proposal relating to vigilance matters which is likely
to result in a reference to the CVC can send a copy directly to the CVC by
name. This copy will be kept in the office of the CVC and data fed into the
computer. If within a reasonable time of say three to six months, the reference
does not come to the CVC, the CVC then can verify with the concerned

Page 1 of 4
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authorities in the department as to what happened to the vigilance case initiated

by the junior employee. If there is an attempt to protect the corrupt or dilute the
charges, this will also become visible. Above all the junior officers will not
have the excuse that they have to fall in line with the corrupt seniors.
Incidentally, the seniors also cannot treat the references made directly to the
CVC as an act of indiscipline because the junior officers will be complying with
the instructions issued under Section 8(1)(h) of the CVC Ordinance 1998.
However, if a junior officer makes a false or frivolous complaint it will be
viewed adversely.

2.2 Greater transparency in administration

2.2.1 One major source of corruption arises because of lack of transparency.

There is a scope for patronage and corruption especially in matters relating to
tenders, cases where exercise of discretion relating to out of turn conferment of
facilities/ privileges and so on. Each Organisation may identify such items
which provide scope for corruption and where greater transparency would be
useful. There is a necessity to maintain secrecy even in matters where
discretion has to be exercised. But once the discretion has been exercised or as
in matters of tenders, once the tender has been finalised, there is no need for the
secrecy. A practice, therefore, must be adopted with immediate effect by all
organisations within the purview of the CVC that they will publish on the notice
board and in the organisation’s regular publication the details of all such cases
regarding tenders or out of turn allotments or discretion exercised in favour of
an employee/party. The very process of publication of this information will
provide an automatic check for corruption induced decisions or undue favours
which go against the principles of healthy vigilance administration.

2.2.2 The CVC will in course of time take up each organisation and review to
see whether any additions and alterations have to be made to the list of items
which the organisation identified in the first instance for the monthly
communications for publicity in the interests of greater transparency. This may
be implemented with immediate effect.

2.3 Speedy departmental inquiries

2.3.1 One major source of corruption is that the guilty are not punished
adequately and more important they are not punished promptly. This is because
of the prolonged delays in the departmental inquiry procedures. One of the
reasons for the departmental inquiry being delayed is that the inquiry officers

Page 2 of 4

215
have already got their regular burden of work and this inquiry is to be done in
addition to their normal work. The same is true for the Presenting Officers also.

2.3.2 Each organisation, therefore, may immediately review all the pending
cases and the Disciplinary Authority may appoint Inquiry Officers from among
retired honest employees for conducting the inquiries. The names of these
officers may be got cleared by the CVC. The CVC will also separately issue an
advertisement and start building a panel of names all over India who can
supplement the inquiry officers work in the department. In fact, it will be a
healthy practice to have all the inquiries to be done only through such retired
employees because it can then be ensured that the departmental inquiries can be
completed in time. If any service/departmental rules are in conflict with the
above instructions they must be modified with immediate effect.

2.3.3 In order to ensure that the departmental inquiries are completed in time,
the following time limits are prescribed:

(i) In all cases which are presently pending for appointment of

Inquiry Officer and Presenting Officer, such appointment should be made
within one month. In all other cases, the Inquiry Officer and the
Presenting Officer should be appointed, wherever necessary, immediately
after the receipt of the public servant’s written statement of defence
denying the charges.

(ii) The Oral inquiry, including the submission of the Inquiry

Officer’s report, should be completed within a period of 6 months from
the date of appointment of the Inquiry Officer. In the preliminary inquiry
in the beginning requiring the first appearance of the charged officers and
the Presenting Officer, the Inquiry Officer should lay down a definite
time-bound programme for inspection of the listed documents,
submission of the lists of defence documents and defence witnesses and
inspection of defence documents before the regular hearing is taken up.
The regular hearing, once started, should be conducted on day-to-day
basis until completed and adjournment should not be granted on frivolous
grounds.

2.3.4 One of the causes for delay is repeated adjournments. Not more than two
adjournments should be given in any case so that the time limit of six months
for departmental inquiry can be observed.

2.3.5 The IO/PO, DA and the CVO will be accountable for the strict
compliance of the above instructions in every case.

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2.4 Tenders

Tenders are generally a major source of corruption. In order to avoid

corruption, a more transparent and effective system must be introduced. As
post tender negotiations are the main source of corruption, post tender
negotiations are banned with immediate effect except in the case of negotiations
with L1 (i.e. Lowest tenderer).

3. Hindi version will follow.

To

(i) The Secretaries of All Ministries/Departments of Government of India

(ii) The Chief Secretaries to All Union Territories
(iii) The Comptroller & Auditor General of India
(iv) The Chairman, Union Public Service Commission
(v) All Chief Vigilance Officers in the Ministries/Departments/ PSEs/Public
Sector Banks/Insurance Companies/ Autonomous Organisations/Societies
(vi) President’s Secretariat/Vice-President’s Secretariat/ Lok Sabha
Secretariat/Rajya Sabha Secretariat/PMO

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 No. 05-04-1-CTE-8
Government of India
Central Vigilance Commission
(CTEs Organisation)
Satarkta Bhawan,
INA Colony,
New Delhi- 110023
Dated: 8.6.2004
OFFICE MEMORANDUM

Sub: Receipt and Opening of Tenders

*********
In the various booklets issued by the CTE Organisation of the Commission,
the need to maintain transparency in receipt and opening of the tenders has
been emphasized and it has been suggested therein that suitable
arrangements for receipt of sealed tenders at the scheduled date and time
through conspicuously located tender boxes need to be ensured.

A
case has come to the notice of the Commission, where due to the bulky
size of tender documents the bid conditions envisaged submission of tenders
by hand to a designated officer. However, it seems that one of the bidders
while trying to locate the exact place of submission of tenders, got delayed
by few minutes and the tender was not accepted leading to a complaint.

In general, the receipt of tenders should be through tender boxes as

suggested in our booklets. However, in cases where the tenders are required
to be submitted by hand, it may be ensured that the names and designation of
atleast two officers are mentioned in the bid documents. The information
about these officers should also be displayed at the entrance/reception of the
premises where tenders are to be deposited so as to ensure convenient
approach for the bidders. The tenders after receipt should be opened on the
stipulated date and time in presence of the intending bidders.

Sd/-
(Gyaneshwar Tyagi)
Technical Examiner
Copy to: -
All CVOs: Ministries/Departments/PSUs/Banks/UTs

222
 No.98/ORD/1
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block 'A',

GPO Complex, INA,
New Delhi- 110 023
Dated the 5th May, 2003

To

(1) Chief Executives of all PSUs/PSBs/Insurance Sector/Organisations

(2) All Chief Vigilance Officers

Subject: Purchase of computer systems by Govt. departments/organisation.

Sir/Madam,

It has come to the notice of the Commission that some departments/

organisations are issuing tenders for purchase of computers where they mention and insist on
the international brands. This not only encourages the monopolistic practices but also vitiates
the guidelines issued by the Ministry of Finance, D/o Expenditure vide its OM No. 8(4)-
E.II(A) 98 dated 17.12.1998 (copy enclosed).

2. It is, therefore, advised that departments/organisations may follow the

instructions issued by the Department of Expenditure.

Yours faithfully,

Sd/-
(Anjana Dube)
Deputy Secretary

223
 No.8(4)-E.II(A)/98
Government of India
Ministry of Finance
(Department of Expenditure)
………

New Delhi, the 17th December, 1998

OFFICE MEMORANDUM

Subject: Purchase of Computer Systems by Government Departments.

….

The undersigned is directed to invite attention to the provisions of GFR 102(1)

and the Annexure to the same according to which "Open Tender" system (that is, invitation to
tender by public advertisement) should be used as a general rule in all cases in which the
estimated value of demand is Rs. 50,000/- and above.

2. It has been brought to the notice of this Ministry by Deptt. of Electronics that
certain Ministries/Deptts etc. issue tenders for purchase of personal computers where they
specify the international brands like IBM, Compaq, HP, Digita l, DELL or Gateway Micron.
This vitiates the guidelines for open tender system laid down in GFRs and deprives other
brands including domestic manufacturers of an opportunity to participate in the tender.
Further Deptt. of Electronics have pointed out that brand names do not have any great
advantage since at the broad level there is hardly any difference between the competing
products because they predominantly use Intel microprocessors.

3. Separately, DGS&D have informed that generalised specifications for

personal computers have been finalised and the process of concluding rate contract is being
initiated.

4. It is, therefore advised that Ministries/Departments should follow the open

tender system without vitiating it by specifying brand names in accordance with the
provisions in GFRs for purchase of personal computers till a rate contract for computers is
concluded by DGS&D. Thereafter, computers could be purchased on rate contract basis.

Sd/-
(Narain Das)
Under Secretary to the Govt. of India

To

All Ministries/Departments of Govt. of India

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 No. OFF-1-CTE-1(Pt) V
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block ‘A’,

GPO Complex, INA,
New Delhi- 110 023
Dated the 24th March 2005

Office Order No. 15/3/05

Subject: Notice inviting tenders – regarding.

The Commission has observed that some of the Notice Inviting

Tenders (NITs) have a clause that the tender applications could be rejected
without assigning any reason. This clause is apparently incorporated in tender
enquiries to safeguard the interest of the organisation in exceptional
circumstance and to avoid any legal dispute, in such cases.

2. The Commission has discussed the issue and it is emphasized that

the above clause in the bid document does not mean that the tender accepting
authority is free to take decision in an arbitrary manner. He is bound to record
clear, logical reasons for any such action of rejection/recall of tenders on the file.

3. This should be noted for compliance by all tender accepting

authorities.

Sd/-
(Anjana Dube)
Deputy Secretary

All Chief Vigilance Officers

232
 No.98/DSP/3
Government of India
Central Vigilance Commission
*****
Satarkta Bhawan, Block ‘A’,
GPO Complex, INA,
New Delhi-110 023
Dated the 24th December, 2004

Office Order No.75/12/04

Sub: Participation of consultants in tender – guidelines regarding.

Consultants are appointed by the organisation for preparation of project report. These
appointment are made for any new projects, expansions, modernization/modification of the
existing projects etc. The selection is made with maximum attention to the suitability,
competence and proven track record.

2. Further, during the CVO’s Conference convened by the Commission in Sept.1997, the
Central Vigilance Commissioner had constituted a Committee of CVOs to go into the system
of contracts prevalent in PSUs and to suggest, wherever required, methods of streamlining
the contracting provisions. The Committee after going through the contract system of various
organisations had made recommendations on consultants as under:-

Consultants:-A firm which has been engaged by the PSU to provide goods or works
for a project and any of its affiliates will be disqualified from providing consulting
services for the same project. Conversely, a firm hired to provide consulting services
for the preparation or implementation of a project, and any of its affiliates, will be
disqualified from subsequently providing goods or works or services related to the
initial assignment for the same project.

Consultants or any or their affiliates will not be hired for any assignment, which by its
nature, may be in conflict with another assignment of the consultants.

3. It has come to the notice of the Commission that in a tendering process of a PSU, the
consultant was also permitted to quote for work for which they had themselves estimated the
rates and the consultant quoted 20% above their own estimated rates as against the awarded
rates which were 20% below the estimated cost. Such over dependence on the consultant can
lead to wasteful and infructuous expenditure which the organisation regrets in the long run.
Meticulous and intelligent examination of the consultants proposal is therefore essential for
successful and viable completion of the project.

4. The Commission reiterates the recommendations made by the Committee that the
consultants/firm hired to provide consulting services for the preparation or implementation of
a project, and any of its affiliates, will be disqualified from subsequently providing goods or
works or services related to the initial assignment for the same project.

Sd/-
(Anjana Dube)
Deputy Secretary
To
All Chief Vigilance Officers

233
234
210
235
211
236
212
237
238
239
 No.98/ORD/1
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block ‘A’,

GPO Complex, INA,
New Delhi- 110 023
Dated the 20th October 2004

Office Order No. 68/10/04

Subject: Leveraging Technology – e-payment & e-receipt.

Reference is invited to the Commission’s Office Order No. 20/4/04

dated 6.4.2004 regarding the above mentioned subject.

2. The Commission had directed that by July 2004, 50% of the payment
transactions both in value terms as well as in lieu of number of transactions shall be
made through ECS/EFT mechanism instead of payments through Cheques; and
urged all Banks, PSUs and Departments to provide an enabling environment and
facilities so that such an initiative is successful. It has been informed that some of
the organisations are yet to initiate the process in this regard. The organisations are,
therefore, requested to forward the details regarding the implementation of e-
payment mechanism, as per the enclosed format by November 15, 2004 positively.

Sd/-
(Anjana Dube)
Deputy Secretary

To

All Chief Vigilance Officers

240
 FORMAT

Leveraging Technology – e-payments & e-receipts

(A) Details regarding payments of salary etc. to employees.

(1) Total No. of employees -

(2) No. of employees whose Bank A/c details including MICR have been
received -

(3) % in terms of numbers of employees to whom salary & other dues are
being paid through e-payments -

(B) Details regarding payments of dues to contractors/suppliers etc.

(1) Number of contractors/suppliers/agents/assessees etc. dealt with

regularly during the period July 2004 – September 2004.

(2) Number of contractors/suppliers/agents/assessees etc. whose Bank

A/c details including MICR have been received.

(3) Total payments made to all contractors/suppliers/assessees/CHA’s

during the period July 2004 – September 2004 (Amount in Rupees in
lakhs).
[Payments should include refunds of earnest money/income tax etc.]

(4) Total payments made through e-payments during the above period
(Amount in Rupees in lakhs).

(5) % of Bills (in terms of number of payments) in which e-payment is

made.

(6) % of value of payments made through e-payments.

(7) List of nodal officers who have been entrusted with the responsibility of
managing charge to e-payment system.

(C) E-receipts

Separate details as per (1)-(7) above may also be provided in respect of e-

receipts by organisations getting regular payments in terms of license fee/income tax
receipts/custom duty/sales tax/property tax/freight charges/consultancy fees etc.
(The organisations can give the type of payments received).

241
 No. 98/ORD/1
Government of India
Central Vigilance Commission
******
Satarkata Bhavan, Block - 'A',
GPO Complex, INA,
New Delhi - 110 023
Dated 04.09.2003

Office Order No.44/9/03

To

All Chief Vigilance Officers

Sub: Irregularities in the award of contracts.

Sir/Madam,

While dealing with the case of a PSU, the Commission has observed that the
qualification criteria incorporated in the bid documents was vague and no evaluation criterion
was incorporated therein. It is also seen that the category-wise anticipated TEUs were not
specified in the bid documents and the same was left for assumptions by Tender Evaluation
Committee for comparative evaluation of financial bids, which led to comparative evaluation
of bids on surmises and conjectures. Further, it was also provided as a condition in the
tender bid that the tenderer should have previous experience in undertaking handling of
similar work and/or transportation works preferably of ISO containers, however, no
definition of 'similar works' was, indicated in the bid documents.

2. It should be ensured that pre-qualification criteria, performance criteria and

evaluation criteria are incorporated in the bid documents in clear and unambiguous
terms as these criterion very important to evaluate bids in a transparent manner.
Whenever required the departments/organisations should have follow two-bid system,
i.e. technical bid and price bid. The price bids should be opened only of those vendors
who were technically qualified by the Deptt./ Organisation. The Commission would
therefore advise that the Deptt./ Organisation may issue necessary guidelines in this regard
for future tenders.

3. It has also observed that the orders were allegedly split in order to bring it within the
powers of junior officers and that the proper records of machine breakdown were not being
kept. It is therefore, decided that in the matters of petty purchase in emergency items all
departments/organisations must keep proper records of all machine breakdown etc.

4. All CVOs may bring this to the notice of all concerned.

Yours faithfully,

Sd/-
(Anjana Dube)
Deputy Secretary

242
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244
 No.98/ORD/1
Government of India
Central Vigilance Commission
*****
Satarkta Bhawan, Block ‘A’,
GPO Complex, INA,
New Delhi- 110 023
Dated the 11 th February 2004

Office Order No. 10/2/04

To

All Chief Vigilance Officers

Subject: Improving Vigilance Administration – Increasing transparency in

procurement/tender Process – use of website- regarding.

In CPWD, MCD, Civil Construction Division of Post & Telecom

departments and in many other departments/organizations, there is system of short
term tenders (by whatever name it is called in different organizations), wherein works
below a particular value are undertaken without resorting to publicity as is required in
the open tenders. This practice is understandable because of cost and time involved
in organizing publicity through newspapers. In all such cases, notice can be put on
the web-site of the department as it does not take any time compared to giving
advertisements in the newspapers and it practically does not cost anything. This will
benefit the department by bringing in transparency and reducing opportunities for
abuse of power. This will also help the organizations by bringing in more
competition.

2. In view of the reasons given above, the Commission has decided that
instructions given in the Commission’s circular (No. 98/ORD/1 dated 18.12.2003) for
the use of web-site will also apply to all such works awarded by the
department/PSEs/other organizations over which the Commission has jurisdiction.

Sd/-
(Balwinder Singh)
Additional Secretary

245
 CENTRAL VIGILANCE COMMISSION

Technical note from National Informatics Center

Solution for Hosting of Signed Documents

1. Integrity of Document:

The documents should be digitally signed by the person submitting them. The
web server to which the documents are submitted for hosting, should verify the
signature before hosting each.

2. Secure Hosting:

‘HTTPS’ should be used for both uploading and downloading of documents to

avoid alteration of documents over the network.

3. Digital Signing and submission:

The documents submitted for hosting may be in PDF or MS-WORD format

The document is digitally signed at the document submission end by a digital

signing tool and by using a private key stored in a smart card. The detached
(PKCS#7) signature file is generated.

The document and the signature are uploaded to the server. The uploading
procedure may be automated through a program. This involves development
effort.

The web server can verify the digital signatures programmatically when the files
are uploaded.

The files and their verified signatures are hosted for downloading by end users.

This procedure will ensure that the signer is confident of what he/she is signing.
The person involved in web hosting is sure that the documents are properly signed.
The end users benefit that the document they are downloading is authentic and that
the integrity of the document is maintained.

4. Download procedure:

a. The user verifies the digital signature of the document on the web site.
b. User downloads both the documents and the signature.
c. User can verify the signature of the documents by using any standards
Compliant Document Signing Tool which can verify a PKCS#7 detached
signature.

5. Certificate for Digital Signature:

a. The signature should be generated using a certificate issued by a Certification

Authority(CA) trusted under Controller of Certifying Authorities (CCA). This is
mandatory for legal validity of the digital signature.
b. The end user should ensure that the certificate used for signing the document is
issued by a trusted CA.

246
 No.98/ORD/1(Pt.IV)
Government of India
Central Vigilance Commission
*****
Satarkta Bhawan, Block 'A',
GPO Complex, INA,
New Delhi- 110 023
Dated the 12.03.2003.

To

All Chief Vigilance Officers

Subject:- Use of web-site in Government procurement or tender process.

Sir,

Attention is invited to the instructions issued by the Commission vide

communication No. 98/ORD/1 dated 28.03.2002 regarding publishing of tender
documents on the web-site.

2. The Commission has received a number of references from various

departments/organisations expressing reservations in implementation the said
instructions in toto The matter has been reviewed in the Commission and it is
observed that it is a fact that use of web-site for accessing the information has so
far not picked up in the country and it would not be possible for the vendors to
access the web-site of every organisation to know the tender details. There is also
no centralised web-site for the tenders

3. Therefore, it has been decided by the Commission that till such time
the penetration of Information Technology is adequate and a dedicated web -site for
Government tenderers is available, Departments/Organisations may continue with
publishing of NIT in newspapers in concise format and put the detailed
information in their respective web-sites.

Yours faithfully,

Sd/-
(Mange Lal)
Deputy Secretary
T.No. 24651010

247
 No.98/ORD/1
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block 'A',

GPO Complex, INA,
New Delhi- 110 023
Dated the 3rd August 2001

To

(i) The Secretaries of all Ministries/Departments of Government of India

(ii) The Chief Secretaries to All Union Territories
(iii) The Comptroller & Auditor General of India
(iv) The Chairman, Union Public Service Commission
(v) The Chief Executives of All PSEs/Public Section Banks/Insurance
Companies/Autonomous Organisations/Societies
(vi) The Chief Vigilance Officers in the Ministries/Departments/PSEs/Public
Sector Banks/Insurance Companies/Autonomous Organisations/Societies
(vii) President's Secretariat/Vice-President's Secretariat/Lok Sabha
Secretariat/Rajya Sabha Secretariat/PMO

Subject: Improving Vigilance Administration - Tenders.

Sir,

Please refer to the instructions issued by the Commission vide its

communication No. 8(1)(h)/98(1) dated 18.11.1998, banning post-tender negotiations except
with L-1.

2. It is clarified that the CVC's instructions dated 18.11.1998, banning post-

tender negotiations except with L-1 (i.e. the lowest tenderer), pertain to the award of
work/supply orders etc., where the Government or the Government company has to make
payment. If the tender is for sale of material by the Government or the Government
company, the post-tender negotiations are not to be held except with H-1 (i.e. the highest
tenderer), if required.

Yours faithfully,

Sd/-
(K.L. Ahuja)
Officer on Special Duty

248
 Immediate

No.98/ORD/1
Government of India
Central Vigilance Commission
******
Satarkta Bhawan, Block 'A',
GPO Complex, INA,
New Delhi- 110 023
Dated 24th August, 2000
To

(i) The Secretaries of All Ministries/Departments of Government of India

(ii) The Chief Secretaries to All Union Territories
(iii) The Comptroller & Auditor General of India
(iv) The Chairman, Union Public Service Commission
(v) The Chief Executives of All PSEs/Public Sector Banks/Insurance
Companies/Autonomous Organisations/Societies
(vi) The Chief Vigilance Officers in the Ministries/Departments/PSEs/Public
Sector Banks/Insurance Companies/ Autonomous Organisations/Societies
(vii) President's Secretariat / Vice- President's Secretariat / Lok Sabha Secretariat/
Rajya Sabha Secretariat/ PMO

Subject: Improving Vigilance Administration-Tenders.

……
Sir,

Please refer to the instructions issued by Commission vide its communication

No. 8 (1) (h)/98(1) dated 18.11.98, banning post tender negotiations except with L-1.

2. The Commission has been getting a number of queries on how to handle the
matter if the quantity to be ordered is more than L-1 can supply or about placement of orders
on Public Sector Undertakings. It is requested that such matters may be dealt with in
accordance with the clarifications issued by the Commission vide its letter of even number
dated 15.3.99 (copy enclosed).

3. Some of the organisations have sought clarification as to whether they can

consider the L-2 offer or negotiate with that firm if L-1 withdraws his offer before the work
order is placed, or before the supply or execution of work order takes place. In this regard, it
is clarified that such a situation may be avoided if a two-bid system is followed (techno-
commercial) so that proper assessment of the offers is made before the award of work order.,
Therefore, if L-1 party backs out, there should be retendering in a transparent and fair
manner. The authority may in such a situation call for limited or short notice tender if so
justified in the interest of work and take a decision on the basis of lowest tender.

4. The Commission has also been getting references for its advice on the
procedures being followed in individual cases of tenders. The Commission would not
involve itself in the decision making process of individual organisations. It, however, would

249
 -2-

expects the organisations to implement its instructions dated 18.11.98, in its spirit and to
ensure that the decisions of administrative authorities are transparent.

Yours faithfully,

Sd/-
(K.L.Ahuja)
Officer on Special Duty

250
251
 No.98/ORD/1
Government of India
Central Vigilance Commission
*****
Satarkta Bhawan, Block ‘A’,
GPO Complex, INA,
New Delhi- 110 023
Dated the 13th July, 2004

Office Order No. 47/7/04

Subject: Central Vigilance Commission’s Directives on Use of Website in

Public Tenders.

A copy of the guidelines on the above mentioned subject and further

clarification in this regard are enclosed herewith for information and necessary
action.

Sd/-
(Anjana Dube)
Deputy Secretary

To

(i) The Secretaries of All Ministries/Departments of Government of India

(ii) The Chief Secretaries to All Union Territories
(iii) The Comptroller & Auditor General of India
(iv) The Chairman, Union Public Service Commission
(v) The Executives of All PSEs/ Public Sector Banks/Insurance Companies/
Autonomous Organisations/ Societies
(vi) The Chief Vigilance Officers in the Ministries/Departments/PSEs/Public Sector
Banks/Insurance Companies/Autonomous Orgnaisations/Societies
(vii) President’s Secretariat/Vice-Presient’s Secretariat/Lok Sabha Secretariat/
Rajya Sabha Secretariat/PMO

252
 2004

No.98/0RD/1
Central VigilanceCommission
The
Bhawan,Block'A',
GPOComplex,INA,
NewDelhi-110023
Datedthe2ndJuly

OfficeOrder No.43/7/04

Subject:" Improving VigilanceAdministration: Increasing Transparency in

procurement/sale etc. - Use ofwebsiteregarding.

CentralVigilanceCommissionhasissuedadirectiveontheabove
subjectvideitsOrderNO.98/0RD/1dated18thDec.2003makingitmandatorytouse
web-siteinallcaseswhereopentendersystemisresortedto.Thesejnstructionshave.
beenfurtherextendedvide OfficeOrder NO.10/2/04 dated 11.2.2004 to tenders of
short-termnature(bywhatever nameitiscalledindifferentorganizations). Various
organizations have been corresponding with the Commission seeking ~ertain
clarificationswith regardto the above directives. The main issues pointed out by
organizationsareasfollows:

Issue 1 SizeofTender Documents

In cases ofworks/procurement ofhighlytechnical nature, tender'

documents run into several volumes with large number of drawings and
specificationssheets, etc. Itmaynotbepossible toplacethese documents on
website. ".

Clarification: These issueshavebeendiscussedwiththetechnicalexpertsand

theiropinion,thereisnotechnicaland"evenpracticaldiffic~ltyindoingthesame.
daysalmostalltheorganizationsdotheirtypingworkoncomputersandnoton
manualtypewriters.Thereisnosignificantadditionaleffortinvolvedinuploadingthe
materialtypedonMSWord oranyotherwordprocessingsoftwares onthewebsite
irrespectiveofthenumberofpages.Thescanningofdrawingsisalsoaroutineactivity.
Moreoverifthevolumeandsizeoftenderdocumentissolargeastomakeitinconvenient
foranintendingtenderingpartytodownloadit,theyalwayshavetheoptionofobtaining
the tender documents from the in organization through traditional channels. The
Commissionhasaskedforputtingtenderdocumentsonweb-siteinadditiontowhatever
methodsarebeingpresentlyused. These

Issue 2 Issues Connected withDataSecurity, Legalityand Authenticity of

Bid Documents.

Certain organizations have expressed apprehensions regarding

securityof data, hackingof websitesetc. They havealso pointed out that certain"

253
 biddingpartiesmayalterthedownloadeddocuments andsubmittheir bids insuch
for alteredtenderdocumentswhichmayleadtolegalcomplications.
(Original
issue has been examined both from technical and legal
angles.Technicallyahighlevelofdatasecuritycanbeprovidedinthewebsites.The
provisionsofdigitalsignaturesthroughCertifyingAuthoritycanbeusedtoensurethat
incaseofanyforgeryoralterationindownloadeddocumentsitistechnicallyfeasible
toprovewhattheoriginaldocumentwas. Therearesufficientlegalprovisionsunder
ITActtoensurethate-businesscanbeconductedusingtheweb-site. Acopyofthe
remarksgivenbyNIConthisissueareenclosedherewith.

Issue 3 Some organizations havesought clarification whether web site is

al~o to beused proprietary items or items which are sourced from"OEMs
Equipment Manufacturers) and OESs (Original Equipment Suppliers).

Clarification: It isclarifiedthat Commission's instructions are with regardto

goods,servicesandworksprocuredthroughopentendersystem,"sotheseinstruction
donotapplyto proprietaryitemsanditemswhich necessarilyneed"tobe procured
throughOEMsandOESs. Order

Issue 4 Dotheinstructions regarding'shorttermtenders' given intheeve

No.98/0RD/1dated 11thFeb.,2004applytolimitedtenders also?

Clarification: In manyorganizationsgoods,servicesandworks which asper

laiddown
normsaretobeprocured/executedthroughopentendersystemmanytimes
duetourgencyaredonethroughshorttermtenderswithoutresortingtowidepublicity
innewspapersbecauseoftimeconstraint.Inallsuchcasesshortterm tenders (by
whatevernameitiscalled)etc.shouldalsobeputonthewebsiteofthe dept.asit
doesnotinvolveanyadditionaltimeorcost.

Regardingapplicabilityoftheseinstructionstolimitedtenderswherethe
numberofsuppliers/contractorsisknowntobesmallandasperthelaiddownnorms
limitedtender systemisto beresort~d"tothrough"asystemofapproved/ registered
theclarificationisgivenbelow:
vendors/contractors,

5 Some organizations have"pointed out that they make their"

procurement or execute their work through a system ofapproved/registered.
vendors and contractors and have sought clarification about the implications of
CVC's instructio!1s insuch procurements/contracts.

Clarification: The Commissiondesiresthat inallsuchcasesthere should be

widepublicitythroughthewebsiteaswellasthrough theothertraditional channels
atregularintervalsforreg.istrationofcontractors/suppliers. Alltherequiredproforma
for registration, the pre-qualification criteria etc. " should be always available
ontheweb-siteoftheorganizationanditshouldbepossibletodownloadthesame
Issue
andapplytotheorganization. Thereshouldnotbeanyentrybarriersorlonggapsin
theregistrationofsuppliers/contractors.Theintervalsonwhichpublicityistobegiven
throughwebsiteandtraditionalmeanscanbe'decidedbyeac~organizationbasedon
theirownrequirementsa~ddevelopmentsinthe market conditions. Itisexpected

254
 , a

part

thatitshould
contractors.
bedoneatleastonce

(Balwinder
~
inayearforupgrading
.
thelistofregistered vendors/

The concernedorganisationshouldgivewebbasedpublicityforlimited,
tenders.alsoexceptforitemsofminorvalue.' Iftheorganizationdesiresto limitthe
accessofthelimitedtenderdocumentstoonlyregisteredcontractors/suppliersthey
canfimittheaccessbyissuingpasswordstoallregisteredcontractors/suppliers. Butit
shouldbeensuredthat passwordaccessisgivento aUthe.registeredcontractors/
suppliersandnotdeniedtoanyoftheregisteredsuppliers. Anydenialofpasswordto
willleadtopresumption,ofmalafideintentiononthe
registeredsupplier/contractor
ofthetenderingauthority.

Singh)
Addl.
,
Secretary.'

To

(i) . TheSecretariesofAllMinistries/DepartmentsofGovernmentofIndia
(ii) . The ChiefSecretariestoallUnionTerritories
(Hi) TheComptroller&AuditorGeneralofIndia
(iv) TheChairman,UnionPublic:ServiceCommission
(v) TheDirector,CentralBureauofInvestigation
,The ChiefExecutivesofallPSEs/PublicSectorBanks/InsuranceCompanies/
'

', 'Autonomous Organisations/Societies' , '.

(vi) (vii)
TheChiefVigilanceOfficersintheMinistries/Departments/PSEs/Public
BanksllnsuranceCompanies/AutonomousOrganisations/Societies
,
(viii) President'sSe,cretariaWice-President'sSecr~tariaVLokSabhaSecretariat!
Sabha Secretariat!PMO '.

, Sector

, Hajya

255

6
 No.98/ORD/1
Government of India
CENTRAL VIGILANCE COMMISSION
******

Satarkta Bhavan, Block ‘A’,

G.P.O. Complex, I.N.A.,
New Delhi – 110 023
Dated the 6th April, 2004

Office Order No. 20/4/04

Sub: Improving Vigilance Administration: Increasing Transparency and

cutting delays by e-payments and e-receipt by Govt. Organisations etc.

The Commission has been receiving complaints about inordinate delays in

making payments to the vendors and other suppliers to the Govt. organisations,
Public Sector Undertakings etc. Similarly complaints are received about delays in
getting refunds from taxation dept. and other departments. Apart from increasing the
cost of procurement, the delays lead to opportunities for corruption. A number of
measures are required to cut down on delays in making payments. One such step is
resorting to mechanism of e-payments and e-receipts wherever such banking
facilities exist.

In the last few years tremendous progress has been made by the banking
sector in computerization including net-working of branches, making it possible to do
e-banking by making use of facilities like electronic clearing system (ECS) and
electronic fund transfer (EFT) etc. These facilities are available in most of the banks
including the State Bank of India as well as in private banks. A large number of
corporates including public sector undertakings are already making e-payments to
vendors and employees instead of making payments by issue of cheques.

The Commission has been receiving complaints that delay is intentionally

caused with ulterior motives in the issue and dispatch of cheques in the accounts
and finance wings of a large number of Govt. Organisations. As the e-payment
facility is already available in the metros as well as practically in all the main urban
centres of the country, in order to curb the above mentioned malpractices, the CVC
in the exercise of powers conferred on it under Section 8(1) (h) issues following
instructions for compliance by all govt. departments, PSUs, banks and other
agencies over which the Commission has jurisdiction.

1. The payment to all suppliers/vendors, refunds of various nature, and other

payments which the organisations routinely make shall be made through electronic
payment mechanism at all centres where such facilities are available in the banks.

2. Salary and other payments to the employees of the concerned organisations

at such centres shall also be made through electronic clearing system (ECS)
wherever such facilities exist.

256
 As the organisations will have to collect bank account numbers from the
vendor, suppliers, employees and others who have interface of this nature with the
Govt. organisations, the concerned organisations may plan to switch over to e-
payment system in a phased manner starting with transactions with the major
suppliers in the beginning or in whatever manner is found more convenient.

It is expected that in three months i.e. by 1 st July, 2004, 50% of the payment
transactions both in value terms as well as in terms of number of transactions shall
be made through ECS/EFT mechanism instead of payment through cheques. The
remaining 50% payment transactions at all centres where such facilities exist shall
be made by 31st Dec., 2004.

These instructions are applicable to all the metro cities and other urban
centres where the banks provide ECS/EFT and similar other facilities.

The departments, PSUs, Banks etc. should also provide an enabling

environment and facilities so that businessmen and other citizens can make payment
of Govt. dues and payments to PSUs etc. electronically.

In addition to significantly reducing processing costs in preparation and

dispatch of cheques, the above measures also reduce the risk of frauds by providing
speed, efficiency and easier reconciliation of accounts.

Sd/-
(ANJANA DUBE)
DEPUTY SECRETARY

To

i) The Secretaries of All Ministries/Departments of Government of India.

ii) The Chief Secretaries to all Union Territories.
iii) The Comptroller & Auditor General of India.
iv) The Chairman, Union Public Service Commission.
v) The Chief Executives of all PSEs / Public Sector Banks / Insurance
Companies / Autonomous Organisations / Societies.
vi) All Chief Vigilance Officers in the Ministries / Departments / PSEs Public
Sector Banks / Insurance Companies / Autonomous Organisations / Societies.
.vii) President’s Secretariat / Vice-President’s Secretariat / Lok Sabha Secretariat /
Rajya Sabha Secretariat / PMO.

257
 No.98/ORD/1
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block ‘A’,

GPO Complex, INA,
New Delhi- 110 023
Dated the 9th February 2004

Office Order No. 9/2/04

To

All Chief Vigilance Officers

Subject: Improving Vigilance Administration – Increasing transparency in

procurement/sale – use of web-site regarding.

The Commission has issued a directive vide No. 98/ORD/1 dated 18th
December 2003 wherein detailed instructions are issued regarding the use of web-
site for tendering process. The objective is to improve vigilance administration by
increasing transparency. The instructions were to take effect from 1 st January 2004.
It is noticed that many organisations whose web-sites are functional are still not
putting their tenders on the web-site. The Commission has desired that CVOs
should ensure compliance of the above directive. They should regularly pursue the
Newspaper advertisements, the web-site of their organisation and in general keep
track to ensure that the directives of the Commission on this subject are complied
with. Further, the Commission has desired that the CVOs should indicate in their
monthly report in the column pertaining to tender notices whether all the tenders
have been put on the web-site, and if not, the reasons for non-compliance. The
explanation of the concerned officers who are not complying with these directions
should be called and further necessary action taken.

Sd/-
(Balwinder Singh)
Additional Secretary

258
 No.98/ORD/1
CENTRAL VIGILANCE COMMISSION
*****
Satarkta Bhavan, Block ‘A’
G.P.O. Complex, I.N.A.,
New Delhi– 110 023
Dated the 18th December, 2003

Subject:- Improving Vigilance Administration: Increasing Transparency

in Procurement/Sale etc.

The Commission is of the opinion that in order to bring about

greater transparency in the procurement and tendering processes there is need
for widest possible publicity. There are many instances in which allegations
have been made regarding inadequate or no publicity and procurement officials
not making available bid documents, application forms etc. in order to restrict
competition.

2. Improving vigilance administration is possible only when system

improvements are made to prevent the possibilities of corruption. In order to
bring about greater transparency and curb the mal-practices mentioned above
the Central Vigilance Commission in the exercise of the powers conferred on it
under Section 8(1)(h) issues following instructions for compliance by all govt.
departments, PSUs, Banks and other agencies over which the Commission has
jurisdiction. These instructions are with regard to all cases where open tender
system is resorted to for procurement of goods and services or for auction/sale
etc. of goods and services.

(i) In addition to the existing rules and practices regarding giving

publicity of tenders through newspapers, trade journals and
providing tender documents manually and through post etc. the
complete bid documents alongwith application form shall be
published on the web site of the organization. It shall be ensured
by the concerned organization that the parties making use of this
facility of web site are not asked to again obtain some other related
documents from the department manually for purpose of
participating in the tender process i.e. all documents upto date
should remain available and shall be equally legally valid for
participation in the tender process as manual documents obtained
from the department through manual process.

259 Contd..…2/-
 -2-

(ii) The complete application form should be available on the web site
for purposes of downloading and application made on such a form
shall be considered valid for participating in the tender process.

(iii) The concerned organization must give its web site address in the
advertisement/NIT published in the newspapers.

(iv) If the concerned organization wishes to charge for the application

form downloaded from the computer then they may ask the bidding
party to pay the amount by draft/cheques etc. at the time of
submission of the application form and bid documents.

3. While the above directions must be fully complied with, efforts

should be made by organizations to eventually switch over to the process of e-
procurement/e-sale wherever it is found to be feasible and practical.

4. The above directions are issued in supersession of all previous

instructions issued by the CVC on the subject of use of web-site for tendering
purposes. These instructions shall take effect from 1 st January, 2004 for all such
organizations whose web-sites are already functional. All other organizations
must ensure that this facility is provided before 1st April, 2004.

Sd/-
(P. Shankar)
Central Vigilance Commissioner

To

(i) The Secretaries of All Ministries/Departments of Government of India

(ii) The Chief Secretaries to all Union Territories
(iii) The Comptroller & Auditor General of India
(iv) The Chairman, Union Public Service Commission
(v) The Chief Executives of all PSEs/ Public Sector Banks/Insurance
Companies/Autonomous Organisations/Societies.
(vi) The Chief Vigilance Officers in the Ministries/Departments/ PSEs/Public
Sector Banks/Insurance Companies/Autonomous Organisations/Societies
(vii) President’s Secretariat / Vice-President’s Secretariat / Lok Sabha
Secretariat / Rajya Sabha Secretariat / PMO

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 No.98/ORD/1
Government of India
Central Vigilance Commission
*****

Satarkta Bhavan, Block ‘A’,

G.P.O. Complex, I.N.A.,
New Delhi– 110 023
Dated the 11 th September 2003

OFFICE ORDER NO. 46/9/03

To

All Chief Vigilance Officers

Subject: E-procurement/Reverse Auction.

Sir/Madam,

The Commission has been receiving a number of references from

different departments/organisations asking for a uniform policy in this matter. The
departments/organisations may themselves decide on e-procurement/reverse
auction for purchases or sales and work out the detailed procedure in this regard. It
has, however, to be ensured that the entire process is conducted in a transparent
and fair manner.

Yours faithfully,

Sd/-
(Mange Lal)
Deputy Secretary
Telefax - 24651010

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 No.005/VGL/4
Government of India
Central Vigilance Commission
*****

Satarkta Bhawan, Block ’A’,

GPO Complex, INA,
New Delhi- 110 023
Dated the 28th July 2005

Office Order No.46/07/05

Subject: Details on award of tenders/contracts publishing on Websites/

Bulletins - Reminder regarding.

Reference is invited to Commission’s Office Order No.13/3/05 dated

16.3.2005 regarding above mentioned subject directing the organisations to publish
every month the summary of contracts / purchases made above a threshold value on
the website. In this regard it is specified that the proposed threshold limit is
acceptable to the Commission as long as it covers more than 60% of the value
of the transactions every month. This limit can be raised subsequently once the
process stabilizes.

2. CVOs may, therefore, ensure that such details are posted on the
website of the organisation immediately and compliance report in this regard should
be sent by CVOs in their monthly report to the Commission.

(Anjana Dube)
Deputy secretary

To

All Chief Vigilance Officers

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 No. 005/ORD/1
Government of India
Central Vigilance Commission
********
Satarkta Bhawan, Block ‘A’,
GPO Complex, INA,
New Delhi-110023
Dated 10th March, 2005

OFFICE ORDER NO. 11/3/05

To,

All the Chief Vigilance Officers

Sub: Delays in Payments to Contractors & Suppliers etc. – Reducing

opportunities for corruption reg.

The Commission has observed that in a large number of Government

organisations and PSUs, payments to contractors/suppliers are inordinately
delayed. This makes the system vulnerable to corruption, in addition to
increasing the cost of procurement by the Government agencies.

2. The Commission has therefore directed that all the CVOs should
undertake a review of bills received during the last six months. The review is
meant to primarily determine the time taken in clearing the bills. Necessary
help from the concerned Finance/Administration departments may be taken
wherever required. Wherever the systems have not yet been computerised
there may be practical difficulties in conducting such a review for all the bills.
The organisations may fix a cut off limit for review. It is suggested that the cut
off limit for bills can be Rs. 1 lakh i.e. time taken for payment of all bills above
this amount should be seen. In smaller organisations the cut off limit can be
lower depending on feasibility and convenience.

3. The CVO should also review whether payments are being made on
“first-come-first-serve” basis or not.

4. A compliance report in this regard may be sent to the Commission by

15.4.2005 as per the following details:

Statement on delays in Bill Payments

1. Name of Organisation :

2. Cut off limit : Rs.1 lakh/others(in

respect of small orgns.)

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 :2:

3. Bills received during Sept.,04-Feb,05 :

(from contractors/suppliers etc.)

Total No. of Bills :

Total amount involved :

4. Out of these :

(a) Bills paid in 15 days :

No. of Bills :
Amount Involved :

(b) Bills paid in 15-30 days :

No. of Bills :
Amount Involved :

(c) Bills paid in 30-60 days :

No. of Bills :
Amount Involved :

(d) Bills paid from 60 days to 120 days :

No. of Bills :
Amount Involved :

(e) Bills paid over 120 days :

No. of Bills :
Amount Involved :

5. There are also complaints that most of the organisations take

inordinately long time in releasing 5% bills amount which is normally retained
as performance guarantee after it becomes due. CVO may do a similar
exercise with regard to release of this payment.

6. Has any ERP system or any other computerized system been installed
for accounting purposes which can monitor bill payment?

6A. If not, is there any plan to do so in near future? If so, please indicate
the time frame.

Sd/-
(Balwinder Singh)
Additional Secretary

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 No. 06-03-02-CTE-34
Government of India
Central Vigilance Commission
(CTE’s Organisation)

Satarkta bhavan, Block-A,

GPO Complex, INA,
New Delhi-110023
Dated: 20.10.2003

OFFICE MEMORANDUM

Sub: Back to back tie up by PSUs- instructions regarding

It has been observed during intensive examination of various works/contracts

awarded by construction PSUs on back to back basis that the works are being
awarded in an ad-hoc and arbitrary manner without inviting tenders and ascertaining
the performance, capability and experience of the tenderers. In some cases, the
works were awarded on single tender basis/limited tender basis though sufficient
time was available with the Organisation to invite open tenders.

2. Some of the common irregularities/lapses observed during the examination of

works were as under:

a) No transparency in selection of contractor for the back to back tie up which is

the main source of corruption.

b) Collusion among the contractors was observed where more than one
contractors were involved at various stages.

c) Ineligible contractor obtains the contract through the PSUs.

d) Purchase preference misused by the PSUs.

e) PSUs sublet the complete work to a private contractor without obtaining

permission from the client which invariably put a condition insisting such
permission since the client is generally not interested in such back to back
sublet of the work.

f) Infructuous work (to the exchequer) due to the involvement of intermediary

PSUs and cost of project goes up ultimately.

g) No supervision by the PSU as they put the staff mainly for coordination work.

h) Quality ultimately suffers due to lack of supervision by the PSUs.

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3. Commission is of the view that the practice of award of works to PSUs on
nomination basis by Govt. of India/PSUs needs to be reviewed forthwith.

4. The irregularities observed during intensive examination of work and

difficulties being faced by the PSUs in inviting tenders were considered and it
has been decided that the procedure to be followed for award of work by
Construction PSUs shall be finalised taking into account the following points:

a) PSUs (when bag the contract from the client Department) as a contractor, has
to execute the work by functioning like a contractor instead of sub-letting the
100% work on back to back basis.

b) Open tenders to be invited for selection of sub-contractors as far as possible

c) In case, it is not possible to invite open tenders, selection should be carried

out by inviting limited tenders from the panel approved in the following
manner. Panel of contractors are to be prepared for different categories.
monetary limits, regions, in a transparent manner clearly publishing the
eligibility criteria etc. The above panel is to be updated every year.

d) Tenders to be opened confidentially by a high level committee to maintai n the

secrecy of rates, if required. Tender opening register should be maintained in
this regard duly signed by the officers opening the tender and kept
confidentialy. This should be available for perusal when required by
audit/vigilance.

e) The terms and conditions of the contract of the client especially those
pertaining to subletting of works should be strictly adhered to by the PSUs.

f) Adequate staff to be deployed by the PSUs to ensure quality in construction

etc.

g) The record of enlistment/updation of contractor and tender opening register

shall be produced to the CTEO as well as audit officials when demanded for
scrutiny.

5. It is, therefore, suggested that the procedure for award of work on back to
back basis be finalised keeping in view the above points and circulated
amongst the concerned officials of your organisation for strict compliance in
future works.

Sd/-
(R.A. Arumugam)
Chief Technical Examiner

To
All CVOs of Ministries/Departments/PSUs etc.

291
 No. 2EE-1-CTE-3
Government of India
Central Vigilance Commission
(CTE’s Organization)

Satarkta Bhavan, Block-A,

GPO Complex, INA,
New Delhi-110023
Dated - 15.10.2003

OFFICE MEMORANDUM

Sub: Tender Sample Clause

The Commission has received complaints that some organizations, while procuring
clothing and other textile items insist on submission of a tender sample by the bidders though
detailed specifications for such items exist. The offers are rejected on the basis of tender
samples not conforming to the requirements of feel, finish and workmanship as per the
‘master sample’ though the bidders confirm in their bids that supply shall be made as per the
tender specifications, stipulated in the bid documents.

2. While it is recognized that samples may be required to be approved to provide a basis

in respect of indeterminable parameters such as shade, feel, finish & workmanship for
supplies of such items but system of approving/rejecting tender samples at the time of
decision making is too subjective and is not considered suitable, especially for items which
have detailed specifications. The lack of competition in such cases is also likely to result in
award of contracts at high rates.

3. It is thus advised that Government Departments/Organizations should consider

procurement of such items on the basis of detailed specifications. If required, provision for
submission of an advance sample by successful bidder(s) may be stipulated for
indeterminable parameters such as, shade/tone, size, make-up, feel, finish and workmanship,
before giving clearance for bulk production of the supply. Such a system would not only
avoid subjectivity at the tender decision stage but would also ensure healthy competition
among bidders and thus take care of quality aspect as well as reasonableness of prices.

4. It is requested that these guidelines may be circulated amongst the concerned officials
of your organization for guidance. These are also available on the CVC’s website,
http://cvc.nic.in.

Sd/-
(A.K. Jain)
Technical Examiner
for Chief Technical Examiner

To
All CVOs of Ministries/Departments/PSUs/Banks/Insurance Companies/Autonomous
Organizations/Societies/UTs.

292
 No.98/ORD/1
Government of India
Central Vigilance Commission
(CTE’s Organization)
Satarkta Bhavan, Block ‘A’
G.P.O. Complex, I.N.A.,
New Delhi– 110 023
Dated the 9th July, 2003

Office Order No. 33/7/03

To

All the Chief Vigilance Officers

Subject:- Short-comings in bid documents.

Sir/Madam,

The Commission has observed that in the award of contracts for goods and
services, the detailed evaluation/exclusion criteria are not being stipulated in the bid
document and at times is decided after the tender opening. This system is prone to
criticism and complaints as it not only leads to a non-transparent and subjective system
of evaluation of tenders but also vitiates the sanctity of the tender system.

2. The Commission would reiterate that whatever pre-qualification,

evaluation/exclusion criteria, etc. which the organization wants to adopt should be made
explicit at the time of inviting tenders so that basic concept of transparency and interests
of equity and fairness are satisfied. The acceptance/rejection of any bid should not be
arbitrary but on justified grounds as per the laid down specifications,
evaluation/exclusion criteria leaving no room for complaints as after all, the bidders
spend a lot of time and energy besides financial cost initially in preparing the bids and,
thereafter, in following up with the organizations for submitting various clarifications
and presentations.

3. This is issued for strict compliance by all concerned.

Yours faithfully,

Sd/-
(Mange Lal)
Deputy Secretary
Telefax No.24651010

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 IMMEDIATE

NO.3(V)/99/9
CENTRAL VIGILANCE COMMISSION
*****
Satarkta Bhavan, Block "A"
GPO Complex, I.N.A.
New Delhi-110023

Dated the 1st October, 1999

Subject:- Applicability of CVC's instruction No.8(1)(h)/98(1) dated

18/11/98 on post- tender negotiations to Projects of the
World Bank & other international funding agencies .

******

The Commission has banned post- tender negotiations except with L-1
vide its instruction No.8(1)(h)/98(1) dated 18/11/98. Subsequently, the Commission
had also issued a clarification vide No.98/ORD/1 dated 15/3/99. Notwithstanding the
clarifications issued by the Commission, many Departments/Organisations have been
approaching the Commission on specific issues which were clarified to the individual
departments/organisations.

2. A clarification sought by many Departments/Organisation, which is vital

and has relevance to many of the organisations relates to the applicability of the above
said instruction of CVC to World Bank Projects. It has been decided after due
consideration, that in so far as the World Bank Projects and other international funding
agencies such as IMF, ADB etc. are concerned, the department/organisations have no
other alternative but to go by the criteria prescribed by the World Bank/concerned
agencies and the Commission's instruction would not be applicable specifically to those
projects. However, the instructions of the CVC will be binding on purchases/sales
made by the departments within the Country. The CVC's instruction of 18/11/98 will
apply even if they are made with sources outside the Country and if they are within the
budget provisions and normal operations of the Department/Organisation,

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3. All CVOs may ensure strict compliance of this instruction.
4. This instruction is also available on CVC's Website at http://cvc.nic.in

To

(i) The Secretaries of All Ministries/Departments of Government of India.

(ii) The Chief Secretaries to All Union Territories
(iii) The Comptroller & Auditor General of India
(iv) The Chairman, Union Public Service Commission.
(v) The Chief Executives of All PSEs/Public Sector Banks/Insurance
Companies/Autonomous Organisations/Societies.
(vi) The Chief Vigilance Officers in the Ministries/Departments/PSEs/Public Sector
Banks/Insurance Companies/ Autonomous Organisations/Societies
(vii) President's Secretariat / Vice- President's Secretariat / Lok Sabha Secretariat/
Rajya Sabha Secretariat/ PMO

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