GCC for Services

Eligibility of Bidders and Evaluation of Bids.

Bid Documentation.

General Obligations.

Variation, Measurement and Payment.

Labour Laws and Related Obligations.

Determination of Contract.

Settlement of Disputes- Indian Railway Arbitration Rules.

Annexures
 II. Eligibility of Bidders and Bid Evaluation.
2.1.1- Essential elements of a service contracts:

Service contracts are generally defined by –

Scope
Governance
Operations
Financial Agreements
Performance and Implementations

Quality of services and timely availability of service is

essential for the satisfactory performance of a service
contract.
 2.6.1- Minimum Eligibility Criteria for
Single/two packet System in Services
Contract:
Work experience:- The bidder should have satisfactorily
completed* in the last three previous financial years and the
current financial years up to the date of opening of the
tender, one similar single service contract** for a minimum
of 35% of advertised value of the bid.

*Completed service contract includes ongoing service contract

subject to payment of bills amounting to at least 35% of the
advertised value of the bid.

** Similar service contract means any contract that is so specified by the

competent authority

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 2.6.1- Minimum Eligibility Criteria for Single/two
packet System in Services Contract:

Financial Standing: The Bidders will be qualified

only if they have minimum financial capabilities as
below: -

• (i) T1- Financial Turnover: - The bidder should have an

aggregate financial turnover not less than 1.5 times of
advertised Bid Value during the last three previous
financial years and in the current financial year up to the
date of opening of the tender.
• (ii) T2 Liquidity: The bidder should have access to or
has available liquid assets, lines of credit and other
financial means to meet cash flow that is valued at 5% of
the estimated bid value net of applicant's commitments
for other contracts.
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 Eligibility Criteria for Two packet System
in Services Contract:

2.6.2- Evaluation
of Technical Bid

To scrutinize the capability, financial

strength, experience etc. of bidders.

Technical criteria & minimum qualifying

marks to be defined

2.6.3 - Evaluation of Financial Bid

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 Tenderer Credentials:
• A copy of an affidavit on stamp paper to the effect that all the
documents submitted by her bid are true. This shall be mandatory
in all bids. The bid shall be summarily rejected if the bidder fails to
submit this undertaking along with the bid.
• The Railway reserves the right to verify all statements, information
and documents submitted by the bidder in his tender offer, and the
bidder shall, when so required by the Railway, make available all
such information, evidence and documents as may be necessary
for such verification. Any such verification or lack of such
verification, by the Railway shall not relieve the bidder of its
obligations or liabilities hereunder nor will it affect any rights of the
Railway thereunder.

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 Partnership Deeds, Power of Attorney
etc.:
Documents to be Submitted Along
with Tender

Sole LLP
Proprietor Partnersh Registere (Limited
HUF ip Firm Company d Society Liability
ship Firm
/JV & Trust Partnersh
ip)

The power of attorney shall be submitted even if such specific person is

authorized for above purposes through partnership deed/Memorandum of
Understanding/Article of association or such other document, failing which
tender is liable to be rejected.

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 Disqualification of Bidders:
Employment/ Partnership etc of Retired Railway
Employee –
(a) & (b) Engineer or officer not retired from government
service at least 1 year prior to the date of submission
of the tender.

(c) a relative(s) employed in gazetted capacity in the

Engineering or any other department of the railway or
having share of more than 1% in the tendering entity.
Bids without the information above referred to or a
statement to the effect that no such retired Manager or
Guzetted officer is so associated with the Bidder

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 JOINT VENTURE (JV)

2.4.1.2 The other

Number of
Lead members shall
shall not Member have a share of
2.4 members not less than
be more shall have
Participati in a JV 20% each in
than five, if a
on of Joint 2.4.1.1 shall not case of JV with
the work
Venture Separate be more majority up to three
involves members and
(JV) firms identity/na than three, (at least
more than not less than
in Service me if the work 51%)
one 10% each in
Tender involves share of
Departmen case of JV with
bids: only one interest
t. more than
departmen three
t
in the JV.
members.

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 JOINT VENTURE (JV)
Tender form shall be purchased and submitted only in the
name of the JV
Memorandum of Understanding (MoU)

Credentials & Qualifying Criteria: Technical, financial eligibility

and Bid capacity of the JV
Technical Eligibility Criteria (‘a’ or ‘b’ mentioned hereunder):

(a) For Services without composite components

(b) For Services with composite components

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 Partnership Firms

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 Qualification Criteria
Disqualification of Bidders

• Single Packet System- for bid

value up to and including Rs. 50
lakh (As decided by Rly Bd from
time to time).
Bid Evaluation • Two Packet System:- Bid value
System exceeding Rs. 50 lakh.
• Quality and Cost Based System
(QCBS):- used for consulting
services having bid value
exceeding Rs. 50 Lakh.

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 III. Bid Documentation:
Earnest Money:3.3
Earnest Money Deposit (EMD)
Value of the Work

For works
estimated to cost
2% of the estimated cost of the work
up to ₹ 1 crore

₹ 2 lakh plus ½% (half percent) of

For works estimated
the excess of the estimated cost of
to cost more than
work beyond ₹ 1 crore subject to a
₹ 1 crore
maximum of ₹ 1 crore
e-Tender Forms shall be issued free of cost to all
tenderers.
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Earnest Money:
Shall be rounded off to the nearest ₹10.
Any firm recognized by Department of Industrial Policy
and Promotion (DIPP) as ‘Startups’ shall be exempted
100% Govt. owned PSUs shall be exempt
Labour Cooperative Societies shall deposit only 50% of
above earnest money deposit detailed above.
Note: Vide Rly.Bd.L.No.2020/CE-I/CT/3E/GCC/Policy dt 30.12.2020- Rly.
Bd. has advised to take ‘Bid Security Declaration’ in lieu of ‘Bid
Security/ Earnest Money Deposit’ except wherever compelling
circumstances to ask for Bid Security/Earnest Money Deposit.

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 Care in Submission of Bids:
Clause 3.4

All conditions liable to be encountered during the

execution of the works has been taken into account.

The rates he enters in the tender forms are

adequate and all inclusive (Clause 37)

(CGST)/ (IGST)/ (UTGST)/ (SGST)

Signed by the individual legally authorized

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 Care in Submission of Bids:

• The tenderers shall submit a copy certificate

stating that all their statements/documents
submitted along with bid are true and factual.
• Standard format of certificate to be submitted
by the bidder is enclosed as Annexure-V.
• Non submission of certificate by the bidder
shall result in summarily rejection of his/their
bid.
• Must submit supporting documents duly self
attested by which they/he is qualifying the
Qualifying Criteria mentioned in the Tender
Document.

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 3.5 Execution of Contract Documents:
The Bidder whose bid is accepted required to appear in
person/representative in concerned office within 7 days
after receipt of notice. In case failure bidder may has
abandoned and earnest money/PG forfeit.

• 3.6 Forms of Contract Documents:

Atleast 03 Copies - Contractor
- Finance Department
- Contract manager

NOTE: Specimen Bid and Agreement Form are at Annexure II &

III in GCC for Services.

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 4.11 Performance Guarantee in service
contract:
amounting to 10 % of the contract value in four separate parts of 2.5 % each
of contract value

within 30 (Thirty) days from the date of issue of Letter of Acceptance (LOA)

PG beyond 31 (Thirty one) days and up to 90 days -a penal interest of 15% per annum
but a notice to be served after 60 days .

after 90 days from the date of issue of LOA- the contract is liable to be terminated

Validity of PG – up to the stipulated date of completion plus 60 days beyond that

variation up to 25% (either increase or decrease / No addl. PG).An additional 10% PG
in 4 equal installment on excess value of the contract to be deposited by the
contractor.
Shall be released after physical completion of work. 25 % of PG would be retained till
the warranty/maintenance.

If the penalty imposed exceed 50 % of the applicable maximum penalty, a PG

equivalent to 25 % of the applicable PG shall be forfeited. If penalty exceeds 75 %- a
PG equivalent to 50 % shall be forfeited.
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The successful bidder shall submit the PG in any of the
following forms, amounting to 10% of the contract value:
• A deposit of cash.
• Irrevocable Bank Guarantee.
• Government Security including State Loan Bonds at 5%
below market value.
• Deposit Receipts, Pay Orders, Demand Drafts, and
Guarantee Bonds of SBI or any Nationalized Bank.
• A Deposit in the Post Office Savings Bank.
• A Deposit in the national Saving Certificates.
• Twelve Years National Defence Certificates
• Ten Years Defence Deposits.
• National Defence Bonds.
• UTI Certificates at 5% below market value etc.

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 V - Variation, Measurement and Payments:
5.1 Extension of Time in Contracts

Extension of Time in Contracts:

(i) 5.1.1 Extension due to Modification
(ii) 5.1.2 Extension for Delay not due to Railway or
Contractor: external factor
(iii) 5.1.3 Extension for Delay due to Railways

5.2 Extension of Time with Liquidated Damages (LD)

for delay due to Contractor:
• time is essence of the contract
• 0.10% of the contract value of the service for each week or part of
the week may be recovered from the contractor for further
extension .(Manager’s decision)
• LD maximum 5 %

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 VARIATIONS IN EXTENT OF CONTRACT
5.3 Modification to Contract to be in Writing:

5.3.1 Powers of Modification to Contract:

individual item
variation in quantity of each individual item of the contract would be up
to 25% of the quantity
Quantities operated in excess of 125% but up to 140% of the agreement quantity
Quantities operated in excess of 140% but up to 150% of the agreement
quantity
Variation in quantities of individual items beyond 150%

Minor Value Item

overall agreement value

“No Claim” certificate to be obtain by the Railway after final measurement to the
contractor to debarred from disputing and correctness of the items covered.
Details mentioned in SOP 2018 Part-A Works/Service matter, item
no. 9
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 5.5 MEASUREMENTS

Measurement
5.5.1 Quantities in Schedule
of Works by Annexed to Contract .
Railway: 5.5.2 Measurement of
Services/Works- Check list or
any other methodology
provided in bid document.

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 5.7 - Price Variation Clause
(PVC) in service contract:
5.7.1 Applicability: where delivery periods extend beyond 18 months.

46A.2 Base Month:

Month of opening of tender

The quarter for applicability of PVC shall commence from the month following the month
of opening of bid . The Price Variation shall be based on the average Price Index of the
quarter under consideration.
5.7.5 Components on which variation in prices be admissible, shall be Material,
Labour, Fuel etc.
However, for fixed components, no price variation shall be admissible.

5.8 Price Variation during Extended Period of Contract

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 VI- LABOUR
54. Wages to Labour: as per provision of the Minimum Wages Act, 1948

55. Provisions of Payments of Wages Act, 1936

55-A. Provisions of Contract Labour (Regulation and Abolition) Act,

1970 and the Contract labour (Regulation and Abolition) Central
Rules 1971 as modified from time to time
55-B. Provisions of Employees Provident Fund and Miscellaneous
Provisions Act, 1952

55-C(i) website ‘www.shramikkalyan.indianrailways.gov.in’

60.(1) Non-Employment of Laborers below the age of 18.

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 VII-DETERMINATION OF CONTRACT
• owing to paucity of funds or from any
7.1 Right of other cause whatever
Railway to • Notice in writing from the Railway of
Determine the such determination and the reasons
Contract: therefore shall be conclusive evidence
thereof

7.2 Payment on • Railways shall admit and consider

such claims as are deemed reasonable
Determination and are supported by vouchers to the
of Contract: satisfaction of the Manager.

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 DETERMINATION OF CONTRACT:

7.4 Determination of Contract owing to Default of

Contractor:

Performance Notice as per Performa at Annexure-XII

Seven Days Notice as per Performa at Annexure-XIV

Final termination notice as per Performa at Annexure-XV

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 DETERMINATION OF CONTRACT:

7.4 - Right of Railway after Rescission of

Contract owing to Default of Contractor:
The balance The failed
work shall be Contractor shall
No claim to
got done be debarred
compensation PG shall be
independently from
for any loss enchased/
without risk & participating in
sustained by forfeited
cost of the the tender for
Contractor
failed executing the
Contractor. balance work.

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 DETERMINATION OF
CONTRACT
7.4 - In the contract rescinded in part or
parts

The failed
The balance
The defaulting Contractor
The full work shall be
Contractor shall be
Performance got done
shall not be debarred from
Guarantee for independently
issued any participating
the contract without risk &
completion in the tender
shall be cost of the
certificate for for executing
recovered. failed
the contract. the balance
Contractor.
work.

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