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O&M/Procedure/976 Date 28/11/2011 --------------------------------------------------------------------------------------------

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Subject : Measures to increase coverage of e-auction.

Objective : To optimize coverage of e-auction.

Scope : Purchase and Project Contract Cases.

Measures

(i) E-auction will be conducted for all the Purchase and Project Contract Cases where :

The value of the case is more than Rs.10 lakhs.

The price is to be discovered through competitive bidding.

Number of qualified bidders are X+2 or more.

In case, e-auction is not resorted to for the cases qualifying under (i), above, approval of HOMM / HO Proj. shall be obtained with recorded reasoning.

(ii) RFQ will have explicit mention that BSP reserves the right to finalize Order / Contract against the Tender Enquiry either on the basis of Price Bids submitted along with Techno commercial Bids (including revised / updated price bid, if permitted) or by conducting RA.

(iii) RFQ will include RA terms and conditions along with other applicable/ standard terms and conditions.

(iv) While raising mandate for RA, the Tender/Purchase Committee (for the purchase cases valuing more than Rs.10 lakhs, and less than Rs.50 lakhs, the committee will consist Purchase Officer with delegation to approve the case, representative Finance Concurrence Group, Indenter and the dealing Purchase Officer), will arrive on the list of techno commercially suitable bidders, elimination of top few bidders (based on no. of qualified parties available, no. of sources required etc ). Elimination of top few bidders will be done only when they fall beyond 10% of the lowest sealed bid received.

In MM context if there are X+5 or more technocommercially acceptable bidders, then only elimination of top bidder(s) will be done as decided by the Committee.

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(v) The Purchase / Tender Committee shall deliberate and decide the provisional SBP based on following factors :

- last purchase price, if any - departmental/ MECON/CET/BEDB estimate. - the lowest sealed bid received online. - market assessment given by the Service Provider (SP).

(vi) Reverse Auction will be conducted in two stages, by SP, at first stage online sealed bids shall be called for facilitating to decide Start Bid Price (SBP). Thereafter Start Bid Price shall be fixed as per modality at 3 (v) above, and second stage Reverse Auction will be conducted.

However, in Project Contract Turn Key cases where estimate is given by consultant in sealed cover, the Start Bid Price will be decided as lower of the lowest online sealed bid and the estimate given by the consultant. This will be done after result of first stage auction is communicated by SP, by the Officials of Project-Finance and Proj.-Comml. after opening the consultants estimate.

(vii) The SP will conduct second stage of RA and submit RA Report, Price break-up, Price Matching Report (for multi source ordering ) etc.

(viii) On receipt of the report :

a) The Committee will examine the wining bids for their reasonableness or otherwise and make proposal for order placement re-auction / retendering etc. The MM cases valuing upto Rs.50 lakhs where L-1 is falling within acceptable awardable range shall be processed for approval as per DOP by the dealing officer.

Where limited number of participants are there in R.A. the Committee will have discretion to open hard bid of the L-1 bidder under approval of the Competent Authority to assess the reasonableness of price(s).

b) In case no bid received against RA, decision will be taken by the committee to re-launch RA with revised strategy.

c) In case, price discovery fails even after 2/3 serial attempts of R.A., it will be a discretion with the committee to open hard bids

under approval of the Competent Authority and process the case suitably.

(IX) MIS will be sent to CEO, for the cases covered under (1) above and not resorted through R.A. with recorded reasoning.

This issues with the approval of the Competent Authority.

Sd/- ( RAJNEESH CHANDRAKAR )

ASSTT.GENL.MANAGER (O&M)

Distribution - All HODs