qualifying requiements

8/9/2019 Qualifying Requiements

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What are Qualifying Requirements?What are Qualifying Requirements?

QRS are the appropriate conditions, depending on theQRS are the appropriate conditions, depending on thevalue and technicality involved, to be stipulated in thevalue and technicality involved, to be stipulated in theNIT for all open tender cases and are to be fulfilled byNIT for all open tender cases and are to be fulfilled bythe bidder for becoming eligible to be considered for thethe bidder for becoming eligible to be considered for the

award of a specific package.award of a specific package.

Why Qualifying RequirementsWhy Qualifying Requirements

In all cases of pen Tender suitable QRs are to beIn all cases of pen Tender suitable QRs are to bestipulated in NIT and offers of only those bidder arestipulated in NIT and offers of only those bidder areconsidered who !ualifyconsidered who !ualify


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"ata#documentary evidences are obtained fromprospective bidder in support of meeting QRs.

QRs are not re!uired where tendering is resorted toamongst pre$!ualified#registered bidders either ondeemed open tender basis or on limited tenderbasis.

In order to avoid incompetent tenders, a pre$!ualification procedure may be adopted for selectingthe reliable, resourceful and competent parties

from whom the tenders may be invited.

% list of the pre$!ualified vendors based on the

!ualification criteria shall be valid for three years fromthe date of its preparation.


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QR for open tender beyond estimated value of RsQR for open tender beyond estimated value of Rs

4 crore for region#site will be approved by a QR4 crore for region#site will be approved by a QRcommittee to be constituted at region withcommittee to be constituted at region withmembers at the level of 15#15% with onemembers at the level of 15#15% with onerepresentative each of 1ngg., ontracts andrepresentative each of 1ngg., ontracts and

0inance at Regional level in addition to one0inance at Regional level in addition to onemember from orporate 1ngg.member from orporate 1ngg.

+1" of the Region shall be the hairman of QR1" of the Region shall be the hairman of QR

ommittee at regional level.ommittee at regional level.


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'ho prepares ( finali)es the QR*'ho prepares ( finali)es the QR*

R&R%T1 &%6%71S8R&R%T1 &%6%71S8

+ %fter preparation of draft Tech. Specs. for the %fter preparation of draft Tech. Specs. for thepackage, orp. 1ngg. to review the standard QRspackage, orp. 1ngg. to review the standard QRs( identify the changes re!uired, based on the( identify the changes re!uired, based on thefeedback received from 0inance, ontracts (feedback received from 0inance, ontracts (1ngg.1ngg.

+ %pproval of the changes by the ommittee %pproval of the changes by the ommitteeconsisting of 1" 91ngg.:, 1"9(;:, 1"90: andconsisting of 1" 91ngg.:, 1"9(;:, 1"90: and

"9T: as the hairman."9T: as the hairman.


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QRs shall be framed in an ob/ective manner ( notQRs shall be framed in an ob/ective manner ( not

left sub/ective with scope for any discretionleft sub/ective with scope for any discretion

QRs shall further be framed in most realisticQRs shall further be framed in most realisticmanner so as to ensure that ade!uate number ofmanner so as to ensure that ade!uate number of

vendor !ualify tender and generate healthyvendor !ualify tender and generate healthycompetition.competition.

0or multiple &urchases in one NIT a tender may0or multiple &urchases in one NIT a tender may

participate more than one purchase if he !ualifiesparticipate more than one purchase if he !ualifiesfor individual case separately ( specifically.for individual case separately ( specifically.


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CVC guidelines for framing the QRs:CVC guidelines for framing the QRs:

%s per , the following points must be kept in45.4>.?>, the following points must be kept inview while fi-ing the eligibility criteria 8view while fi-ing the eligibility criteria 8

% %) For Civil/Electrical Wors) For Civil/Electrical Wors

i:i: %verage annual financial turnover during the last %verage annual financial turnover during the last@ years, ending @4@ years, ending @4stst ;arch of the previous;arch of the previousfinancial year, should be at leastfinancial year, should be at least @?A@?A of theof theestimated cost.estimated cost.


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ii:ii: 1-perience of having successfully completed1-perience of having successfully completed

similar works during last 5 years ending last daysimilar works during last 5 years ending last dayof month previous to the one in whichof month previous to the one in whichapplications are invited should be either of theapplications are invited should be either of thefollowing 8following 8

a:a: Three similar completed works costing not lessThree similar completed works costing not lessthan the amount e!ual tothan the amount e!ual to B?AB?A of the estimatedof the estimatedcost. r cost. r

b: Two similar completed works costing not less thanb: Two similar completed works costing not less thanthe amount e!ual tothe amount e!ual to 2?A2?A of the estimated cost.of the estimated cost.r r

c: ne similar completed work costing not less thanc: ne similar completed work costing not less than

the amount e!ual tothe amount e!ual to C?AC?A of the estimated costof the estimated cost


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iii:iii: !efinition of "#imilar $or% should &e clearly!efinition of "#imilar $or% should &e clearly

defined'defined'In addition to above, the criteria regardingIn addition to above, the criteria regardingsatisfactory performance of woks, personnel,satisfactory performance of woks, personnel,establishment, plant, e!uipment etc. may beestablishment, plant, e!uipment etc. may be

incorporated according to re!uirement of &ro/ectincorporated according to re!uirement of &ro/ect

() For #tore/urchase Contracts() For #tore/urchase Contracts

&re!ualification#&ost Qualification shall be based&re!ualification#&ost Qualification shall be basedentirely upon the capability and resources ofentirely upon the capability and resources ofprospective bidders to perform the particularprospective bidders to perform the particular

contract satisfactorily, taking into account theircontract satisfactorily, taking into account their


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9i:9i: e-perience and past performance on similare-perience and past performance on similar

contracts for last > yearscontracts for last > years9ii:9ii: capabilities with respect to personnel, e!uipmentcapabilities with respect to personnel, e!uipmentand manufacturing facilitiesand manufacturing facilities

9iii:9iii: financial standing through latest I.T..., %nnualfinancial standing through latest I.T..., %nnual

Report 9balance sheet and &rofit ( DossReport 9balance sheet and &rofit ( Doss %ccount: of last @ years. %ccount: of last @ years.

The !uantity, delivery and value re!uirement shallThe !uantity, delivery and value re!uirement shall

be kept in view, while fi-ing the QR criteria.be kept in view, while fi-ing the QR criteria. *o*o&idder should &e denied +requalification/+ost&idder should &e denied +requalification/+ostqualification for reasons unrelated to itsqualification for reasons unrelated to itsca+a&ility and resources to successfullyca+a&ility and resources to successfully

+erform the contract'+erform the contract'


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Subse!uently that the guidelines issued vide ; dated 45.4>.?>are illustrative and the organi)ations may suitablyare illustrative and the organi)ations may suitablymodify these guidelines for speciali)ed /obs#works, ifmodify these guidelines for speciali)ed /obs#works, ifconsidered necessary. owever, it should beconsidered necessary. owever, it should beensured that the QR criteria are e-haustive, yetensured that the QR criteria are e-haustive, yetspecific and there is fair competition.specific and there is fair competition.

Cor+orate Contracts vide #ystem Circular *o'Cor+orate Contracts vide #ystem Circular *o',-. dated .'0-'01 requested all concerned at,-. dated .'0-'01 requested all concerned atCor+orate Centre2 Regional 3ffices and #ites toCor+orate Centre2 Regional 3ffices and #ites toensure strict com+liance to the CVC guidelinesensure strict com+liance to the CVC guidelinesissued vide 34 dated -5'-'0 6 dated 05'0.'07'issued vide 34 dated -5'-'0 6 dated 05'0.'07'


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Financial Criteria to &e sti+ulated in the QRs for theFinancial Criteria to &e sti+ulated in the QRs for the

+acages &eing tendered from Cor+orate Contracts:+acages &eing tendered from Cor+orate Contracts:

%s per guidelines approved by the ommittee on %s per guidelines approved by the ommittee on;anagement ontrols 9;: and issued by 7;9I%:;anagement ontrols 9;: and issued by 7;9I%:

vide I; dated 4>.?5.?2, the financial criteria to bevide I; dated 4>.?5.?2, the financial criteria to bestipulated in QRs for future packages to be tenderedstipulated in QRs for future packages to be tenderedfromfrom Cor+orate ContractsCor+orate Contracts should be as follows 8should be as follows 8

4.4.Net 'orth 8Net 'orth 8Net worth of bidder as on last day of the precedingNet worth of bidder as on last day of the precedingfinancial year shall not be less than >2A of its paid$upfinancial year shall not be less than >2A of its paid$upshare capital.share capital.


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% bidder who does not satisfy net worth criteria on % bidder who does not satisfy net worth criteria on

its own would be re!uired to furnish along with itsits own would be re!uired to furnish along with itsbidbid a 8etter of 9ndertaing from the holdinga 8etter of 9ndertaing from the holdingcom+anycom+any pledging unconditional and irrevocablepledging unconditional and irrevocablefinancial support for e-ecution of contract byfinancial support for e-ecution of contract by

bidder in case of award , provided that net worth ofbidder in case of award , provided that net worth ofsuch holding company should be at least e!ual tosuch holding company should be at least e!ual toor more than paid$up share capital of holding co.or more than paid$up share capital of holding co.

In cases where audited results for the lastIn cases where audited results for the lastpreceding financial year are not available,preceding financial year are not available,certification of financial statements from acertification of financial statements from apracticing hartered %ccountant shall also bepracticing hartered %ccountant shall also be

considered acceptable.considered acceptable.


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'' verage nnual ;urnover :verage nnual ;urnover :

The average annual turnover of the bidder in theThe average annual turnover of the bidder in thepreceding three financial years as on the date of bidpreceding three financial years as on the date of bidopening shall not be less than the amount to beopening shall not be less than the amount to be

specified based on following guiding principlesspecified based on following guiding principles

In case of ivil &ackages, the amount shall beIn case of ivil &ackages, the amount shall bee!uivalent to 4.2 times the average annuale!uivalent to 4.2 times the average annual

re!uirement based on cost estimate.re!uirement based on cost estimate.

In case of ;echanical#1lectrical packages, the amountIn case of ;echanical#1lectrical packages, the amountshall be e!uivalent to the average annual re!uirementshall be e!uivalent to the average annual re!uirement

based on the cost estimate.based on the cost estimate.


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In composite packages involving both civil asIn composite packages involving both civil aswell as ;echanical#1lectrical elements, thewell as ;echanical#1lectrical elements, theturnover re!uirement for ivil &ortion andturnover re!uirement for ivil &ortion and;echanical#1lectrical portion shall be specified;echanical#1lectrical portion shall be specifiedseparately in line with the guiding principles asseparately in line with the guiding principles asabove.above.


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Why QRs?Why QRs?

;he very +ur+ose of QRs is to select the;he very +ur+ose of QRs is to select theca+a&le &idders'ca+a&le &idders'

+ ;o assess the technical 6 financial ca+a&ility;o assess the technical 6 financial ca+a&ilityof the &idders'of the &idders'

+ t the same time FR# are to &e framed in at the same time FR# are to &e framed in arealistic manner so as to encouragerealistic manner so as to encouragecom+etition amongst adequate num&er ofcom+etition amongst adequate num&er of+arties'+arties'


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=o$ the QRs should &e?=o$ the QRs should &e?

QRs should &e +ractica&le2 +ur+oseful andQRs should &e +ractica&le2 +ur+oseful ando&>ective and not left su&>ective $ith sco+e foro&>ective and not left su&>ective $ith sco+e forany discretion'any discretion'

#tringent QR 8eads to restricted com+etition'#tringent QR 8eads to restricted com+etition'

Rela@ed QR 3ften leads to favour'Rela@ed QR 3ften leads to favour'

Vague QR 8eaves sco+e for su&>ectiveVague QR 8eaves sco+e for su&>ectivere>ection or acce+tance of &ids're>ection or acce+tance of &ids'


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#;R


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#;R


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RE#;R


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RE8DE! QR:RE8DE! QR:

t one +ro>ect QR for +rocurement of Firet one +ro>ect QR for +rocurement of FireResistant FR) grade Conveyer (elt $asResistant FR) grade Conveyer (elt $asformulated $ithout mentioning FR grade informulated $ithout mentioning FR grade inthe QR' ;his resulted in qualification of athe QR' ;his resulted in qualification of avendor $ho had not earlier manufactured thevendor $ho had not earlier manufactured theFR grade conveyor &elt'FR grade conveyor &elt'


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VA9E QR C3*!


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VA9E QR C3*!ectiveacce+tance or re>ection of &ids' #uch vagueacce+tance or re>ection of &ids' #uch vagueconditions are also not desira&le from theconditions are also not desira&le from thevie$ +oint of &asic ethics of tendering andvie$ +oint of &asic ethics of tendering and

trans+arency'trans+arency'


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QR should &e clear 6 s+ecific:QR should &e clear 6 s+ecific:

The bidder should have designed, supplied,The bidder should have designed, supplied,erected and commissioned at leasterected and commissioned at least t$o )t$o ) firefiredetection and protection systems consisting of thedetection and protection systems consisting of thesystems in industrial installations.systems in industrial installations.

These systems should have been e-ecuted underThese systems should have been e-ecuted undertwo separate contracts i.e. one number firetwo separate contracts i.e. one number firedetection and protection system per contract.detection and protection system per contract.

ontract value for each of these contracts shouldontract value for each of these contracts shouldhave been not less than Rs @2.? million orhave been not less than Rs @2.? million ore!uivalent in foreign currency 9e-change ratee!uivalent in foreign currency 9e-change rateapplicable as on date of bid opening:.applicable as on date of bid opening:.


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1ach of these contracts should have included the1ach of these contracts should have included thesystems as described below8systems as described below8

(a)(a) 0ire hydrant system0ire hydrant system

(b)(b) igh velocity water 9


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E@am+les of variant a++roach in framing theE@am+les of variant a++roach in framing the

QR:QR:))

The bidder should haveThe bidder should have engineered2engineered2

fa&ricated2 su++lied2fa&ricated2 su++lied2 erected anderected andcommissioned low pressure piping system forcommissioned low pressure piping system forthermal power plant9s: and#or the plant9s: suchthermal power plant9s: and#or the plant9s: suchas fertili)ers, petrochemicals etc. The aboveas fertili)ers, petrochemicals etc. The above

piping system should be in successful operationpiping system should be in successful operationas on date of &id o+eningas on date of &id o+ening..


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#ome other e@am+les of QR conditions:#ome other e@am+les of QR conditions:


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E@am+le of a #u&BQR for su++lying theE@am+le of a #u&BQR for su++lying the

cathodic +rotection of underground crosscathodic +rotection of underground crosscountry +i+ing:country +i+ing:

The cathodic protection system shall beThe cathodic protection system shall be

procured from such a firm who has designed,procured from such a firm who has designed,supplied, erected, tested and commissioned atsupplied, erected, tested and commissioned atleastleast t$o ) num&erst$o ) num&ers of impressed currentof impressed currenttype cathodic protection systems each of valuetype cathodic protection systems each of value

not less than Rs 2.? lacs.not less than Rs 2.? lacs. ;he a&ove systems;he a&ove systemsshould &e in successful o+eration for at leastshould &e in successful o+eration for at leastt$o ) years as on date of &id o+ening't$o ) years as on date of &id o+ening'


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E@am+le of a #u&BQRs for su++lying the ;rashE@am+le of a #u&BQRs for su++lying the ;rash

Racs for a =ydro ro>ect:Racs for a =ydro ro>ect:

The trash racks shall be sourced from firm9s:The trash racks shall be sourced from firm9s:who has designed, manufactured, supplied,who has designed, manufactured, supplied,

erected#supervised erection and commissioned#erected#supervised erection and commissioned#supervised commissioning of trash racks with atsupervised commissioning of trash racks with atleast >?? S!m arealeast >?? S!m area each in one or moreeach in one or morecontracts2 in a single +ro>ect and are incontracts2 in a single +ro>ect and are in

successful o+eration for at least t$o ) yearssuccessful o+eration for at least t$o ) yearsas on the date of &id o+ening'as on the date of &id o+ening'


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#eeing QR related clarifications:#eeing QR related clarifications:

%s per System ircular No. 25B dated 45.C.?B, %s per System ircular No. 25B dated 45.C.?B,in all packages to be awarded from orporatein all packages to be awarded from orporate

ontracts, the Tender ommittee shallontracts, the Tender ommittee shallthemselves be authori)ed to seek any QRthemselves be authori)ed to seek any QRrelated clarifications from the bidders duringrelated clarifications from the bidders duringevaluation of bids, if re!uired, without the needevaluation of bids, if re!uired, without the need

for any further approval. Such clarifications onfor any further approval. Such clarifications onbehalf of the Tender ommittee, shall be soughtbehalf of the Tender ommittee, shall be soughtunder the signatures of the ontracts member ofunder the signatures of the ontracts member ofthe Tender ommittee.the Tender ommittee.


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Verification of credentials/e@+erience documentsVerification of credentials/e@+erience documents

In order to provide the input data to the #% forIn order to provide the input data to the #% fortaking appropriate action in case of less nos. oftaking appropriate action in case of less nos. of!ualified bidders and also to ensure approval by the!ualified bidders and also to ensure approval by theauthority competent for the case of single !ualifiedauthority competent for the case of single !ualifiedbid, the credentials of all the participating biddersbid, the credentials of all the participating biddersshould be verified by the tender committee beforeshould be verified by the tender committee beforeputting up its recommendation.putting up its recommendation.

%lso as per System ircular No. 224 dated %lso as per System ircular No. 224 dated

42.?G.>???, T should ensure that the veracity of42.?G.>???, T should ensure that the veracity ofthe credentials submitted by the bidder in supportthe credentials submitted by the bidder in supportof their !ualification re!uirements are established.of their !ualification re!uirements are established.

%ction on false#fraudulent information should be %ction on false#fraudulent information should be

taken and informed to


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4ani+ulation in a++roval of su&Bvendor:4ani+ulation in a++roval of su&Bvendor:

%s per contract the contractor was re!uired to %s per contract the contractor was re!uired topropose the names of the agencies for each sub$propose the names of the agencies for each sub$contract to the 1ngineer$in$charge for his approval.contract to the 1ngineer$in$charge for his approval.

ontractor submitted the names of four Subontractor submitted the names of four Subontractors for the works to be sub contracted, toontractors for the works to be sub contracted, to1ngineer in harge 91I:. Fut one of officials of1ngineer in harge 91I:. Fut one of officials ofNT& re!uested ontractor to propose the name ofNT& re!uested ontractor to propose the name ofone best agency out of the names of sub$contractorsone best agency out of the names of sub$contractorsproposed by them.proposed by them.


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ontractor re!uested NT& to approve the name ofontractor re!uested NT& to approve the name of

all four sub$contractors so that they can select oneall four sub$contractors so that they can select oneout of the names of sub$contractors approved byout of the names of sub$contractors approved byNT&. Fut officials of NT& further directedNT&. Fut officials of NT& further directedcontractor to propose the name of one best agency.contractor to propose the name of one best agency.ontractor nominated name of one agency forontractor nominated name of one agency forapproval of NT&, which was approved by 1I,approval of NT&, which was approved by 1I,NT&. ne of the other agencies whose name wasNT&. ne of the other agencies whose name wasnot put up for approval of NT&, made a complaintnot put up for approval of NT&, made a complaintthat by asking contractor to nominate one bestthat by asking contractor to nominate one best

agency as sub contractor was with ulterior motives.agency as sub contractor was with ulterior motives.


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Earlier +ractice for issue of &id documents:Earlier +ractice for issue of &id documents:

%s per System ircular No. 2?5 dated ?>.4>.G@, in %s per System ircular No. 2?5 dated ?>.4>.G@, inall cases where the procurement is financed byall cases where the procurement is financed byany e-ternal financing agency like 'orldany e-ternal financing agency like 'orldFank#10#S0"#%"F etc., the bid documents beFank#10#S0"#%"F etc., the bid documents be

issued to all intending bidders on their re!uest andissued to all intending bidders on their re!uest andupon their depositing the re!uired cost of the bidupon their depositing the re!uired cost of the biddocumentsdocuments $ithout +rimaBfacie e@amination of$ithout +rimaBfacie e@amination ofqualification status and $ithout asing for anyqualification status and $ithout asing for any

details'details' The Qualification status shall beThe Qualification status shall bee-amined by the tender committee only during thee-amined by the tender committee only during theprocess of evaluation.process of evaluation.


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=o$ever2 for all +rocurement under !omestic=o$ever2 for all +rocurement under !omesticCom+etitive (idding not financed &y anyCom+etitive (idding not financed &y anyfinancing agency2 the guidelines contained infinancing agency2 the guidelines contained inContract Circular *o' 1G dated 0,'05'15 shallContract Circular *o' 1G dated 0,'05'15 shallcontinue to &e in force'continue to &e in force'

s +er #ystem Circular *o' 1G dated 0,'05'152s +er #ystem Circular *o' 1G dated 0,'05'152&id !ocuments shall &e issued to only those&id !ocuments shall &e issued to only thoseintending &idders on their request) $ho +rimaintending &idders on their request) $ho +rimafacie meet the qualifying requirements asfacie meet the qualifying requirements ass+ecified in the *


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qualifying requiements

Documents