Indian Railway Store Code Volume 1&2 -All In One

 

 CHAPTER I INTRODUCTORY ORGANISATION 

 101. The Controller of Stores: The administration and control of the stores of a railway will be conducted by the Stores Department, under the supervision of a Controller of Stores. On him will devolve the duty of ascertaining the needs of a railway in the matter of materials and stores and of arranging for the supply of such materials and stores in the most efficient, economical and expeditious manner possible. He will be responsible for their receipt, inspection and distribution to the various stores depots, for their custody while in-charge of the stores department and finally for their issue on requisitions received from authorised officials of the railway. He will be in-charge of inventory control.

 102. The stocks of certain groups of the stores required by a railway have often to be held by the users at the place of work:� (i) To avoid piecemeal requisitioning of stores from the Stores Department, (ii) For use in emergencies, so as to safeguard against delays or detentions in transportation, and (iii) In some cases, in consideration of the special nature of the material stocked and of the transportation of such material. Such stores are :- (i) Permanent way or other engineering material in the custody of Permanent Way Inspectors and Inspectors of Works. (ii) Locomotive, carriage and wagon parts and electrical stores in running sheds, signal stores, train examining stations and in-charge of out-door electrical chargeman and signal inspectors respectively. (iii) Stores in workshops waiting to be used in repairs or manufacture of locomotive and carriage and wagon duplicates. (iv) Stores which have been purchased for special works, and charged to such works, but (a) left in the custody of the Stores Department (Custody Stores), or (b) lying at site of work (materials-at site). 

 103. Functions of the Controller of Stores.�All Stocks of stores on hand, whether with the Stores Department or other departments of the Railway, represent funds that are not productive. While stocks should be such that stores required by the railway are readily available, they should be as small as possible, and losses due to obsolescence or deterioration should be the minimum practicable. The centralized control that is required for this purpose will vest in the Controller of Stores who will be the head of Stores Department and will be responsible for the� (a) purchase and inspection, and (b) custody and issue of railway stores. 

104. All materials and stores for which the consuming departments have no immediate use should be returned to the Stores Depots, the Controller of Stores being responsible for their survey and valuation, and for disposal by sale or otherwise. He has also to deal with all the surplus, and unserviceable material of the railway. 

105. Nomenclature-cum-Price List.�He should issue and maintain upto-date a Nomenclature-cumPrice List including all items of stores in stock in the Stores Depots. Each separate item of stores in this list should be assigned a number and this number as well as the description should be quoted on all requisitions, receipt, issue and other documents relating to that item. 

106. The Controller of Stores is not a Disbursing Officer, nor he is required to keep any general accounts of the stores transactions of the railway. His duties in this respect will be limited to the maintenance of numerical records of stores in stock and to the preparation of the initial documents of receipt and issue.

107. General Supervisory Control.�The Controller of Stores should arrange for submission to him of such statements and returns as may be necessary to keep him informed of the stocks available in his depots, the manner in which the requisitions of the departments are being complied with, the inflow of materials not required by departments and the steps taken to dispose of surplus and unserviceable stores. 

108. Planning of Supplies of Stores.�The Controller of Stores is responsible for preparing a correct estimate of the quantities of stores to be purchased or manufactured in the railway workshops each year and for making the most advantageous arrangements possible for the economic purchase of stores. In this, he will be guided by the Purchase Policy Rules, the Contract Rules and the rules prescribing the purchase of certain articles through specified agencies, i.e. the Railway Board and the DGS&D. The Directorate General of Supplies and Disposals is the biggest agency and it has been set up with the object of collecting together the requirements of the various government departments and making bulk purchases at the most economic rates. The purchase through the agency of the Directorate General of Supplies and Disposals is normally obligatory subject to some monetary limits in the case of a large number of articles for items other than Rly. Board specified exclusive railway items and, in respect of such purchases, the Controller of Stores should work in closed co-ordination with that department, while watching the interests of the railway administration. Stationery, printing stores and office machinery and appliances for all government departments and for railways are similarly purchased through the Controller of Printing and Stationery. Supplies of wooden sleepers are arranged for through an organisation known as the Sleepers Pool. Mathematical Instruments are to be obtained through the National Instruments (Private) Ltd., Calcutta. 

109. Purchase of Stores.�The purchase of all other stores should be arranged for by the Controller of Stores, under the orders of the General Manager, subject to certain reservations which the Railway Board have made regarding the call of tenders and for the letting out of contracts for certain items of stores, such as coal, rails, cast-iron sleepers, and rolling stock. In respect of items earmarked for procurement by the Railway Board, the Controller of Stores will ensure timely submission of indents as in the case of DGS&D items. STORES DEPOTS 

110. Nature & Distribution of Stocks.�For the purposes of maintenance and distribution, the stores are divided into General Stores & Engineering Stores including permanent way stores. The organisation for the control of stocks of permanent way materials is generally under the direction of an officer designated the Track Supply Officer who, with his staff of any separate permanent-way depot that may exist, constitutes a self-contained branch of the Stores Department. It will be the duty of the Track Supply Officer to maintain close co-operation between the Controller of Stores and the Chief Engineer. 

111. Materials are stocked at suitable points on the line in stores depots under Depot Officers subordinate to the Controller of Stores. In addition, imprest stocks of stores are also sanctioned to categories of subordinates, such as Running Shed Foreman, Train Examiners, Electrical Chargeman, Permanent Way Inspectors, &c. 

112. Location of Stores Depots.� For facility of work, there should ordinarily be: (i) A Locomotive Stores Depot attached to and serving the main locomotive workshops of the railway, steam, diesel and electric. (ii) A Carriage and Wagon Stores Depot similarly attached to the main carriage and wagon shops. (iii) A Signal Stores Depot serving the Signal shops, if any. (iv) One or more Permanent-way Material Depots for storing permanent way and bridge materials. (v) Stationery Depot. (vi) One or more stores depots or yards for collecting all scrap and unserviceable material. Such depots should be situated in or near the best market for the disposal of such articles, (vii) Other General Stores Depots as found necessary. No new Stores Depot should be formed without the sanction of the General Manager such sanction being recorded in the minutes of Official Meetings. 

113. Stock Items.�Such Items will be kept in the custody of the Stores Department which are frequently and regularly required and whose unit cost justifies incurring inventory carrying cost associated with these items. Such items will be known as 'Stock' items. 

114. Ordinary Stores.�Ordinary Stores are generally such items of Stores for which there is a regular turnover caused by a constant demand and which are stocked by the Stores Department in its Depot. 

115. Emergency Stores.�The depots have also to stock certain items of stores though they do not have a regular turnover caused by a constant demand. These are 'Emergency Stores' and comprise items of stores which do not ordinarily wear out or require renewal, which have, however, to be kept in stock to meet emergencies, such as that due to breakage or unanticipated deterioration, and which are not readily obtainable. The stock cards relating to such stores should be marked with the letter 'E'. 

116. Non-stock Items.�All items other than 'stock' items will be called "Non-stock1 items. These items may, however, be described in the Standard Nomenclature List No purchase of such items will be made for stock purposes. 

117. Special Stores.�These are stores required for works and other special purposes i.e. other than for 'operation' or ' ordinary maintenance and repairs' and which are ordinarily dispatched directly to the requisitionist without being stocked in a stores depot. 

118. Surplus Stores.�These are of two kinds, 'Moveable' and 'Dead'. Moveable Surplus Stores comprise items of stores which have not been issued for a period of 24 months, but which, it is anticipated, will be used in the near future. Dead Surplus Stores comprise items of stores which have not been issued for 24 months and which, it is considered, are not likely to be utilised on any railway within next two years. 

119. Such surplus stocks may be the result either of changes in design, in specification, &c. of the 'stock items' of stores or of consuming departments returning to the depots special items or stocks items of stores no longer required by them such stores have to be held in custody in stores depots and steps taken for their prompt disposal. 

120. Surplus stores should be distinguished from "over stocks" or ordinary stores (see paragraph 2230- 2). 

121. Main Depots.�The stock of each depot should comprise only those materials or stores as are required in the shop or Divisions which the depot serves. 

122. Subject to the above rule, each stock item should be allocated to one depot, the factor governing the selection of the depot being generally the proximity to the base of supply. The depot so nominated will be the Main Depot for the item, all other depots which may stock the same item for issue in their respective territories being 'Subsidiary Depots' as far as that item is concerned. All orders for purchase or manufacture by Workshops of an item of stores will be placed by the 'Main Depot' for the item, the 'Subsidiary Depots' merely placing requisitions on the Main Depot. 

123. The assignment of one depot as a Main Depot for an item of stores prevents the slow accumulation of surplus stocks in each depot by individual direct purchases of stores, obviates loss of valuable time involved in reference to each other depot to see whether surplus stocks are available before a purchase order can be placed, and as will be seen from the detailed procedure in paras 1414 to 1439, concentrates the surplus stores of an item in one depot, viz., the Main Depot and therefore enables the systematic working off of such surplus before purchases are resorted to. 

124. Minima and Maxima.�A minimum and maximum limit should be laid down for the quantity of each 'stock item' of stores in a depot at any time below or above which the balances should not ordinarily be allowed to go. 

125. Minimum Stock.�The minimum limit should be a quantity of stock representing an average weekly issue multiplied by the number of weeks, which from past experience, it is known will elapse from the date of placing an order before fresh stocks can arrive at the depot. The minimum limit is therefore the lowest permissible level to which the stock of an item may fall without a stock recoupment having been sent forward for replenishment. It is the "Stock Order Point" signifying the point at which the recoupment demand should be sent forward. 

126. In the case of items arranged for on an annual contract basis, it is possible to keep the "minimum" very low, because the time required to get fresh stocks is merely the period required for placing a purchase order on the firm against the annual contract. Supplies of items, which are merely purchased as and when required, take a considerably longer time than supplies of items ordered up against annual contract as the time factor must be adequate for the calling of tenders, placing of order, and for the contractor to obtain his supplies after receipt of the orders. As such, a system of as-and-when-requiredpurchases, in addition to involving higher minima stocks being kept, results in the items frequently running out of stock. Every endeavor should therefore be made to place as many stock items as possible on annual contracts. 

127. The minimum stock limit should be fixed as low as possible depending upon the prevailing market conditions and the proximity of the depot to the normal source of supply. 

128. Maximum Stock.�The fixing of the maximum limit is governed by the following factors :� (i) Economic Size of Each Order.�The "Maximum" is the lowest quantity that may be ordered for at any time after providing that stores are never less than the prescribed minimum. As orders for small-quantities at a time at frequent intervals would result in increased cost of packing and other charges, including heavy clerical and accounting work, cost of stationery and inconvenience to the suppliers, the "maximum" should be carefully fixed with due consideration for this factor. (ii) Increased Lock up of Capital.� On the other hand, the fixation of high limit would involve apart from inventory carrying costs unnecessary locking up of capital, risk of deterioration of stores, extra storage and protection arrangement, increased labour charges, and accumulation of surplus by unnecessary advance purchase of stores, which by the light of information available at a later date could otherwise have been cancelled from the contract obligations under the clauses empowering increase or decrease of the contracted quantity. (A working rule is that the maximum should not ordinarily exceed twice the minimum limit prescribed for an item). 

129. Minima and Maxima for Workshop Items.� Maximum and minimum stock limits for items manufactured in railway workshops should be fixed in consultation with the Works Manager of the shops concerned, taking into consideration the time taken by the workshops to complete any recoupment orders placed on them. 

130. Powers of the Controller of Stores.�The financial and other powers of the Controller of Stores are such as are delegated to him by the General Manager, within the" provisions of the Indian Railway Codes and the rules and orders issued by Railway Board from time to time. 

131. Standards of Financial Propriety.� In exercising these powers, the Controller of Stores should pay strict regard to the standards of financial propriety among which are the following:� (i) The expenditure should not prima facie be more than the occasion demands, and that every government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money. (ii) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage. (iii) Public money should not be utilized for the benefit of a particular person or section of the community, unless:� (a) the amount or expenditure involved is insignificant or (b) a claim for the amount could be enforced in a court of law or (c) the expenditure is in pursuance of a recognised policy or custom. (iv) The amount of allowances, such as travelling allowances, granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole sources of profit to the recipients. Note.�All proposals involving financial implications except those which have been specifically exempted for this purpose should be referred to finance branch for advice before these are sanctioned. 

132. Schedule of Powers of Purchase, Sales &c, of the Controller of Stores/Chief Materials Manager.� It has been found in practice that the powers of the General Manager in the matter of the purchase, sales &c, of railway stores need not be delegated to Controller of Stores/Chief Materials Manager beyond the limits shown in the schedule below. These limits should not ordinarily be exceeded. Subject to such safeguards as may be laid down in consultation with the Financial Adviser and Chief Accounts Officer and within the limits laid down by the General Manager, the Controller of Stores may delegate powers of purchase to his subordinate officers attached to his office, excepting where levels of delegations have been fixed by the Board. Note.�The expression subordinate officers attached to his office occurring at the end of the above subparagraph includes all Gazetted Officers under the Stores Department of the Railways whether at the Headquarters, Depots or Divisions. POWERS Item No. Nature of Power Extent of power 1 2 3 1 Purchase of stores other than stationery and printing. Up to Rs. 2 Crores for CMM and Rs. 15 Crores for COS for each individual item. Same as stipulated in Para 331 (c) the previous sanction of the General Manager is necessary to- Subject to the constitution of tender committees to deal with tenders of the value of Rs. 10 lakhs or above in each case, vide paragraph 351, note I. (1)the adoption of the single tender system to orders, the estimated value of which exceeds (i) Rs.3 Lakhs in the case of nonproprietary articles in normal circumstances and Rs. 15 Crore in the case of proprietary articles where PAC 'c' has been certified subject to the rates quoted being reasonable; (ii) Rs. 5 Lakhs in case of emergencies, in case of Proprietary articles where PAC 'a' has been certified and in case of articles in the process of indigenous development subject to the rates quoted being reasonable; (2) the adoption of the open tender system to orders, the estimated value of which exceeds Rs. 10 Lakhs; 2 Purchase of stores through the Directorate General of Supplies and Disposals. (a). Power to sign on behalf of the General Manager all indents placed in India on the Directorate General of Supplies and Disposals against "General Purposes" grant and to certify minor casual indents not involving expenditure against the advance grant upto a limit of Rs. 30,000 in each case. Also power to incur liability in respect of "other than imported stores for general purposes" in anticipation of funds being provided in the sanctioned budget for the following financial year and to certify indents for such stores placed on the Directorate General of Supplies and Disposals accordingly. (b).ln the case of running contract the Controller of Stores/Chief Materials Manager may exceed the contract quantity plus tolerance laid down by the Directorate General of Supplies and Disposals with the prior sanction of the Director General of Supplies and Disposals, and subject to the limit of Rs. 10,000 in each case 3 Purchase of Printing & Stationery All powers under paragraph 1109 of this code. 4 Penalties for failure to deliver stores within the stipulated time. 1. The penalties laid down in the contract Document are - a) Cancellation of the contract and recovery of any loss or damage which the railway may sustain by reason of such failure on the part of the contract, or b) Forfeiting of Security Deposit at the rate of 10% of contract value, provided the same has been submitted as per contract condition. or c) Purchase else where at the contractor's risk or d) Recover from the Contractor as agreed Liquidated Damages and not by way of penalty, a sum equivalent to 2% (Two percent) of the price of any stores (including elements of taxes, duties, freight, etc.) which the contractor has failed to deliver within the period fixed for delivery in the contract or as extended for each month or part of a month during which the delivery of such stores may be in arrears where delivery thereof is accepted after expiry of the aforesaid period, subject to a maximum of ten percent of value of the delayed supplies. There should normally be no system of waiver of LD and imposition of Token LD for delayed supplies in supply contracts. System of waiver of LD and imposition of Token Liquidated Damages for delayed supplies in supply contracts will strictly be an exception rather than rule and only in situations where the circumstances leading to delays in supplies were beyond the control of supplier. 2. In respect of purchases made under the General Manager's sanction, the Controller of Stores/Chief Materials Manager may be given powers of granting extensions of delivery periods. He has also powers to impose or waive penalties in such cases, with the concurrence of the Financial Adviser and Chief Accounts Officer. 5 Cancellation of orders placed by the Controller of Stores under his own power of purchase or against annual contract sanction by the General Manager. Full powers. 6 Obtaining excess quantities against items on rate contracts. Full Powers subject to the contract Conditions. 7 Obtaining excess quantity against items on running contracts entered into by the Railways Power to exceed the original contract quantity beyond the percentage tolerance agreed, subject to a limit of 10% of the value of the contract subject to conditions of Para 441-S. 8 Sale of Stores to other railways. Full powers to sell any stores to other railway at full book rate or higher plus such additional charges as prescribed. 9 Sale of over-stocks of ordinary emergency or special stores:� By tenders................... Full powers and power to adjust the difference between book value and sale value. By direct sale............... Full powers to sell at the book rate or purchase rate whichever is higher plus the prescribed departmental charges. 10 Direct sale of books, forms, stationery, petty stores and clothing for menial staff. Power to sell at the book rate or purchase rate whichever is higher plus freight incidental supervision charges to the following Railway Employees' Co-operative Credit Society, Railway Institutes, Government Railway Police Department, Indian Posts and Telegraphs Department, Railway Battalions, Railway Regiments and other similar bodies. 11 Disposals by sale or transfer of scrap, unserviceable, surplus and obsolete stores and adjustment of the difference between the book value and sale value. (a)By tender��������� Full powers to dispose of such material and to adjust the difference between the book value and sale value. (b)By direct sale to other Govt. Dept. and quasi Govt. bodies, public undertakings of Govt. of India or State Govt. Power to sell at book value or last auction rate whichever is higher or at a loss not exceeding Rs. 200 in each case. Note.-lf as a condition of sale, freight is to be borne by the administration cost of such freight should be taken into consideration in computing the loss. (This rule applies to all cases of sales). (c)By auction������� Full powers subject to paragraph 2224. 12 Extension of time and enforcing or waiving of ground rent in connection with the sale of scrap to contractors and cases of stores awaiting removal from Railway premises. Power to grant extension of time either for payment or removal of material specified in contracts entered into by him and to enforce or to waive ground rent provided the railway has suffered no loss by such extension or waiving which facts must be recorded in writing in each case. 13 Writing down value of surplus or obsolete stores on the books. Power to write down the value of such items of stores as become surplus to requirements or absolute subject to a limit of Rs. 1 Lakhs for each item on the recommendation of Survey Committees. 14 Certification of indents for the purchase of stores through the Directorate General of Supplies and Disposals against the works grant. Full power to sign and certify such indents. 15 Tender Deposits� (i) Refund of Security deposit. Full powers provided the contracts are satisfactorily completed. (ii) Forfeiture of earnest money deposited along with tenders and of security deposits. Full powers in accordance with the provision of the tender or contract provided that when the General Manager approves such tenders or contracts, he should decide the question of forfeiture. 16 Contracts � for loading and unloading goods. Full powers. Note. �Contracts should be given after public call for tenders. 17 Adjustments against the Stock Adjustment Account. Full Powers Provided the adjustments are:- (a) restricted to a limit of Rs. 5,000 for each individual case. (b) not due to the negligence, carelessness or dishonesty of any railway employee; (c)not due to different methods of measurement adopted by the Accounts Department Stock Verifiers and the departments. (d) Such that the Chief Accounts Officer agrees need not be referred to the General Manager. Note. - (1) The limit of Rs. 1,000 may be extended to Rs. 10,000 with respect of adjustments due to fluctuations in market rates. Note.- (2) The restriction in clause (a) does not apply to adjustments of the difference between book rates and sale values for which vide items 9 and 11. 18 To write off shortages of articles of dead stock, losses of stores and tools and plant in stock and in transit on Revenue Account and to sanction adjustments effected in the numerical accounts for verifications undertaken departmentally or by the Accounts Deptt. (i) Full powers upto Rs.5,000/- in each individual case provided that the adjustments :- (a) are not due to the negligence, carelessness or dishonesty of any railway Employees. (b) arising out of Accounts Department Verifications are such that the Chief Accounts Officer agrees need not be referred to the General Manager. (ii) And up to Rs. 2,000 in each case where the loss is due to the negligence carelessness or dishonesty of any railway employee where it is not possible to effect the recovery of the cost of the stores from the employee concerned. (Authority Board's letter No. Item No. Nature of Power Extent of power 1 2 3 1 Purchase of stores other than stationery and printing. Up to Rs. 50 lakhs for CMM and Rs.1.5 crores to COS for each individual item. Same as stipulated in paragraph 331 (c) the previous sanction of the General Manager is necessary to� Subject to the constitution of tender committees to deal with tenders of the value of Rs. 2 lakhs or above in each case, vide paragraph 351, note I. (1) the adoption of the single tender system to orders, the estimated value of which exceeds Rs. 10,000 in the case of non-proprietary articles and Rs. 25 lakhs in the case of proprietary articles and articles in the process of indigenous development subject to the rates quoted being reasonable; (2) the adoption of the open tender system to orders, the estimated value of which exceeds Rs. 3 lakhs; (3) the direct purchase of stores, for which indents have to be placed with the DGS &D value exceeding Rs. 25 lakhs. 2008/RS(G)/779/9 dated 06-02-2009).--acs no. 16 page no. 6 to 9 2 Purchase of stores through the Directorate General of Supplies and Disposals. a) Power to sign on behalf of the General Manager all indents placed in India on the Directorate General of Supplies and Disposals against "General Purposes" grant and to certify minor casual indents not involving expenditure against the advance grant upto a limit of Rs. 30,000 in each case. Also power to incur liability in respect of "other than imported stores for general purposes" in anticipation of funds being provided in the sanctioned budget for the following financial year and to certify indents for such stores placed on the Directorate General of Supplies and Disposals accordingly. (b) In the case of running contract the Controller of Stores/Chief Materials Manager may exceed the contract quantity plus tolerance laid down by the Directorate General of Supplies and Disposals with the prior sanction of the Director General of Supplies and Disposals, and subject to the limit of Rs. 10,000 in each case. 3 Purchase of Printing & Stationery All powers under paragraph 1109 of this code 4 Penalties for failure to deliver stores within the stipulated time. Note.�Where no loss can be proved to have occurred, no penalty is leviable. 1. The penalties laid down in the contract document are� (a) Cancellation of the contract and recovery of any loss or damage which the railway may sustain by reason of such failure on the part of the contractor, or (b) Purchase elsewhere at the contractor's risk or (c) Recovery from the contractor of a sum of 2 per cent of the contract price of the consignment per month or part during which the supply may be in arrear upto the amount of the actual loss sustained by the railway. The Controller of Stores/Chief Materials Manager may be given full powers to impose or waive these penalties in respect of all contracts entered into by the Railway. When waiving a penalty, the reason for doing so must be fully recorded on the relevant files and the stores bill forwarded to the Chief Accounts Officer suitably endorsed. 2. In respect of purchases made under the General Manager's sanction, the Controller of Stores/Chief Materials Manager may be given powers of granting extensions of delivery periods. He has also powers to impose or waive penalties in such cases, with the concurrence of the Financial Adviser and Chief Accounts Officer. 5 Cancellation of orders placed by the Controller of Stores under his own power of purchase or against annual contract sanction by the General Manager. Full powers. 6 Obtaining excess quantities against items on rate contracts Full powers subject to the contract conditions. 7 Obtaining excess quantity against items on running contracts entered into by the Railways. Power to exceed the original contract quantity beyond the percentage tolerance agreed, subject to a limit of 10% of the value of the contract subject to conditions of para 441-S. 8 Sale of Stores to other railways Full powers to sell any stores to other railway at full book rate or higher plus such additional charges as prescribed. 9 Sale of over-stocks of ordinary emergency or special stores:� By tenders................... Full powers and power to adjust the difference between book value and sale value. By direct sale............... Full powers to sell at the book rate or purchase rate whichever is higher plus the prescribed departmental charges. 10 Direct sale of books, forms, stationery, petty stores and clothing for menial staff. Power to sell at the book rate or purchase rate, whichever is higher plus freight incidental and supervision charges to the following Railway Employees' Co-operative Credit Society, Railway Institutes. Government Railway Police Department, Indian Posts and Telegraphs Department, Railway Battalions, Railway Regiments and other similar bodies. 11 Disposals by sale or transfer of scrap, unserviceable, surplus and obsolete stores and adjustment of the difference between the book value and sale value. (a)By tender��������� Full powers to dispose of such material and to adjust the difference between the book value and sale value. (b)By direct sale to other Govt. Dept. and quasi Govt. bodies, public undertakings of Govt. of India or State Govt. Power to sell at book value or last auction rate whichever is higher or at a loss not exceeding Rs. 200 in each case. Note.�If as a condition of sale, freight is to be borne by the administration cost of such freight should be taken into consideration in computing the loss. (This rule applies to all cases of sales). (c)By auction������� Full powers subject to paragraph 2224. 12 Extension of time and enforcing or waiving of ground rent in connection with the sale of scrap to contractors and cases of stores awaiting removal from Railway premises. Power to grant extension of time either for payment or removal of material specified in contracts entered into by him and to enforce or to waive ground rent provided the railway has suffered no loss by such extension or waiving which facts must be recorded in writing in each case. 13 Writing down value of surplus or obsolete stores on the books. Power to write down the value of such items of stores as become surplus to requirements or absolute subject to a limit of Rs. 25000 for each item on the recommendation of Survey Committees. 14 Certification of indents for the purchase of stores through the Directorate General of Supplies and Disposals against the works grant. Full power to sign and certify such indents. Tender Deposits� (i) Refund of Security deposit. Full powers provided the contracts are satisfactorily completed. (ii) Forfeiture of earnest money deposited alongwith tenders and of security deposits. Full powers in accordance with the provision of the tender or contract provided that when such tenders or contracts are approved by the General Manager, the question of forfeiture should be decided by him. 16 Contracts� Full powers. For loading and unloading goods. Note. �Contracts should be given after public call for tenders. 17 Adjustments against the Stock Adjustment Account. Full powers provided the adjustments are:� (a) Restricted to a limit of Rs. 5,000 for each individual case. (b) Not due to the negligence, carelessness or dishonesty of any railway employee; (c) not due to different methods of measurement adopted by the Accounts Department Stock Verifiers and the departments. (d) Such that the Chief Accounts Officer agrees need not be referred to the General Manager. Note.�(1) The limit of Rs. 1,000 may be extended to Rs.10,000 with respect of adjustments due to fluctuations in market rates. Note.�(2) The restriction in clause (a) does not apply to adjustments of the difference between book rates and sale values for which vide items 9 and 11. 18 To write off shortages of articles of dead stock, losses of stores and tools and plant in stock and in transit on Revenue Account and to sanction adjustments effected in the numerical accounts for verifications undertaken departmentally or by the Accounts Deptt. (i) Full powers upto Rs. 5,000 in each individual case provided that the adjustments:� (a) are not due to the negligence, carelessness or dishonesty of any railway employees; (b) Arising out of Accounts Department Verifications are such that the Chief Accounts Officer agrees need not be referred to the General Manager. (ii) And up to Rs. 2,000 in each case where the loss is due to the negligence, carelessness or dishonesty of any railway employee where it is not possible to affect the recovery of the cost of the stores from the employee concerned. CHAPTER II STORES NOMENCLATURE AND PRICE LISTS STORES NOMENCLATURE LISTS 201. Standard Classification of Stores.�The following is the standard classification of the railway stores which should be strictly followed on all railways. Railway Stores have been divided into 75 groups, the group number being specified as the first two digits in any price listNo. pertaining to that group. Major Group 1 Group No. 2 Description 3 0 Steam locomotive parts & fittings 0 WP/WG/WL/WT. 1 Other IRS locos BG. 2 Non-IRS locos BG. 3 YP/YG/YL/YM. 4 Other IRS steam locos MG. 5 Non-IRS steam locos MG. 6 All steam locos NG. 7 Rail mounted steam cranes BG/MG/NG. 8 Rail mounted diesel cranes BG/MG/NG. 9 Diesel loco parts & fittings 10 Alco DLW diesel electric locomotives BG/MG/NG. WDM1, WDM2, WDS5, YDM4, YDM4A, Power Packs. 11 WDM1, WDM2, WDS5, YDM4, YDM4A, Vehicle Portion. 12 VVDM1, WDM2, WDS5, YDM4, YDM4A, Transmission. 13 MAK/CLW diesel hydraulic locomotives BG/MG/NG/ WDS4, WDS4A, ZDM3 Power Pack. 14 WDS4, WDS4A, ZDM3 Vehicle portion. 15 Hardware items Common to group 10 & 11. 16 General Motors diesel electric locomotives BG & MG WDM4, YDM3, YDM5. 17 Henschel Main line diesel hydraulic locomotives WDM3. 19 Non-standard diesel locomotives YDM1, N/ZDM1,ZDM2,WDS1,WDS2. 2 Electric loco parts & fittings 21 DC Elec. locos BG pre-war. 22 DC Elec. locos BG post-war (WCM1, 2, 3, 4, 5, WCG2). 24 AC Elec. locos "GROUP" WAM1, WAG2, WAG3, WAG4. 25 AC Elec, locos-Japanese design WAM2, WAM3, WAG2. 26 AC Elec. locos of CLW. 27 AC/DC Elec. locos BG. 28 All AC Elec. locos MG. 3 Carriage, Wagon, EMU, Railcar Parts & fittings 30 ICF Coaches BG & MG. 31 ICF EMU coaches BG & MG. 32 Diesel Railcars BG/MG/NG. 33 BEML Coaches BG & MG. 34 Jessops Coaches BG/MG. 35 EMU Coaches BG/MG (Jessop, Breda, etc.). 36 Other Coaching stock BG/MG. 37 Old IRS design wagons, CR, O, MBC, NCL. 38 New IRS stock wagons, BOX, BOI, BCX, BRH & future new designs. 39 Other goods stock e.g., IRCA & non-IRS. 4 Electrical Stores 40 Cables, Conductors & transmission materials and wires. 41 Insulators & insulating materials. 42 Electrical fittings. 43 All instruments, appliances & component instruments. 45 T.L. Cells & train lighting materials (not included elsewhere). 46 Electrical sub-station transmission & distribution equipment (not included elsewhere). 47 Electrical machinery & parts including carbon brushes of all types. 5 Signals & Telecommunication Stores 50 Telegraphs & telephones equipment. 52 Wireless equipment including electronic components and spares for communication. 54 Signal & interlocking material, mechanical single wire and their parts & fittings. 55 Signal & interlocking material, mechanical double wire and their parts & fittings. 56 Signal & interlocking material, electrical and their parts & fittings. 6 Engineering Plant machinery & parts. 60 Permanent Way, Track Tools & Bridge work. 61 Building materials including sanitary-ware, roofing materials (other than G.I. sheets), Bricks, Sand, Cement, Lime etc. 62 Pipes, tubes & fittings including valves. 65 Plant & Machinery including Cranes-complete unit 66 Spares for Plant & Machinery and Cranes. 67 Road Motors, Auto-trucks, trolleys & material handling equipments other spares. 7,8,9 General Stores 70 Abrasives & grinding wheels. 71 Brushes, brush ware & basketware and bamboo products. 72 Tools accessories & components & instruments. 73 Hardware, fasteners, rivets, bolts, nuts, screws, studs and pins and cotters. 74 Hardware-other than fasteners-Iron-mongery-Tin-ware, etc, including expanded metals, oil lamps, parts and fittings, stores, etc. wire ropes, chains and allied fittings. 75 India Rubber, Leather, Canvas & Plastics & kind of Materials (except those pertaining to technical classification). 76 Electrodes cutting & welding accessories, Elect. & Oxyacetylene. 77 Paints, Enamels, Varnishes and Painter's stores including painter's oils and spirits. 78 Crockery, Cutlery, Nampery, kitchen and tableware, furniture and other equipments including clocks, watches etc. 79 Cloth, clothing and personal equipment and cotton products such as Cord, Twine ropes and Waste Cotton. 80 Petroleum & petroleum products other than fuel oil. 81 Acids, chemicals & chemical products (including soaps, disinfectants, insecticides & explosives) and vegetable oils. 82 Drugs, Pharmaceuticals, Hospital instruments & appliances. 83 Stationery, forms, drawing office instruments, laboratory apparatus, photographic equipment & printing press equipment 84 Refractories, glass, glass substitute, asbestos, asbestos fibre, joint & packing material. 85 Bearing ball and roller. 86 Miscellaneous including fire fighting equipment and marine material. 90 Metals ferrous. 91 Metals Non-ferrous. 91 Fuel & Fuel oils. 93 Timber. 97 Rolling stock complete units. 98 Scrap. CHAPTER III PURCHASE OF STORES : POLICY AND RULES PURCHASE POLICY 301. Sources of Supply.�There are four sources of supply or receipt of materials required by Railways :� (a) Purchases, (b) Manufactured by Railway Workshop, (c) Returned Stores ; and (d) Transfer of Stores from other Railways or departments. Of these, the purchase of stores is the most important and this chapter deals with the rules prescribed for the purchase of stores, (other than printing and stationery stores). The rules are in accordance with the policy of the Government of India to make their purchases of stores for the Public Service in such a way as to encourage the development of the industries of the country to the utmost possible extent, consistent with economy and efficiency. 302. Order of Preference.�In making purchases, preference will be given in the following order :� Firstly, to articles which arc produced in India in the form of raw materials, or are manufactured in India from raw materials produced in India, provided that the quality is sufficiently good for the purpose; Secondly, to articles wholly or partially manufactured in India from imported material provided that the quality is sufficiently good for the purpose; Thirdly, to articles of foreign manufacture held stock in India provided that they are of suitable type and requisite quality; Fourthly, to articles manufactured abroad which need to be specially imported. 303. Quality.�In the case of the first two categories mentioned in paragraph 302 above the condition is that the quality is sufficiently good for the purpose, and for the third category the condition is that the articles arc of suitable type and requisite quality. This means that articles coming under the first two categories should be accepted unless it is considered that the quality is definitely not up to the standard required, even though the imported articles may be considered to be of better quality. 304. DELETED (Authority � Ministry of Railways (Railway Board�s) letter No. 95 /RS (G) / 768 dt 17.08.1995 conveying Ministry of Finance S.O.M No. F. 23 (2) �E.II(A)/92 dt. 24.6.92)--acs no.3 page no.58 304. (A). Price Preference to Products of Small Scale Industries: - For this purpose, Railway purchases for the items of stores other than textile items reserved for purchase from Handloom Sector, may be categorised under 2 broad heads:- (i) Those reserved for exclusive purchase from KVIC/Women�s Development Corporations/Small Scale Sectors Units. (a) At present 409 items are reserved for exclusive purchase from KVIC/Womens�s Development Corporations/Small Scale Sectors Units. (b) Items falling under this category shall be subject to revision from time to time by Railway Board, as per guidelines issued by Department of Supply, Government of India. (ii) Others not so reserved. (Authority: Railway Board�s letter No. 98/RS(G)/779/10(CS) dated 30.05.2000 --acs no.11 page no.59 304(B). Preference to Products of Public Sector Undertakings.�Purchase / Price preference to products of Public Sector Undertakings is given as per the directives issued by Govt. of India from time to time ( Public Sector Undertakings here means companies where not less than 51% of the paid up share capital is held by the Central or State Govt.) Authority:- Board's letter No. 92/RS (G)/565/1/PEs dt. 23.06.1992 conveying Ministry of Industry, Bureau of Public Enterprises O.M.No. DPE/13 (19)/ 91-Fin. dt. 07.05.1992 and Board's letter No. 92/RS (G)/ 363 /1/ PEs dt. 17.12.97 conveying Ministry of Industry, Bureau of Public Enter-prises O.M.No. DPE/l3 (19) /91-Fin. dt.31.10.1997.---acs no.2 page no.59 305. Currency of payment.�All articles required to be purchased for Indian Railways, except those which need to be specially imported, should be purchased on the condition that delivery is made in India for payment in rupees in India. For articles needing import, the payment should be in the currency of the country of origin of the article imported or a currency widely used in international trade, except for expenditure incurred in India including agency commission, if any, which should be paid for in Indian Currency. 306. Deleted. 307. Payment.�Except in special cases, full payment for stores should not be made against shipping or other despatch documents, but only after delivery of stores has been taken by the Receiving Officer and stores are found to be satisfactory in all respects. Should the firms insist, advance payment, within limits specified by the Railway Board, may be made to firms of repute and commercial standing against shipping documents or a Railway Receipt provided the stores have been inspected by the purchaser's nominee prior to the despatch and found satisfactory in all respects and documentary evidence of such inspection is produced while claiming payment. Where in an exceptional case involving import, such inspection prior to despatch is not possible, payment against shipping documents shall be made in consultation with Financial Adviser and Chief Accounts Officer and after obtaining a bank guarantee for the amount of payment. 308. In order to obtain adequate publicity and so ensure economic purchase, tenders should be invited in India and abroad also, if considered necessary or desirable to do so, for supply of all articles unless the value of order to be placed is small, or sufficient reasons to be recorded exist which indicate that it is not in public interest to call for tenders. 309. Powers of General Managers.�Subject to guidelines issued by the Railway Board from time to time and issue of indigenous clearance by the appropriate authority, the discretion to invite tenders from abroad will rest in the General Manager. 310. Publicity.�Tenders should be invited from abroad as well as in India, wherever it is considered necessary or desirable to do so in order to obtain adequate publicity and so ensure economic purchase. The Indian Trades Journal published by the Director General of Commercial Intelligence and Statistics, which is a government publication, should be regarded as the standard medium for public advertisements in India. Advertisements should also be inserted in the principal newspapers in India at the discretion of the Purchasing Officer. In the case tenders are invited from abroad, agencies of the Indian Embassies abroad may be utilised for giving additional publicity to the tender. Sufficient supply of tender documents, specifications and drawings should be sent to them for sale to intending tenderers. Tender Notices may also be sent to local Embassies or Trade Commissioners of countries likely to be interested in supply of stores tendered. The tenderers will normally be instructed to submit their tenders direct to the General Manager/ the Controller of Stores concerned in India. Barring exceptional circumstances, sufficient time as required by circumstances of each case should be given for submission of tenders. Where purchases are to be financed through foreign loans or bilateral agreements, the terms and conditions relating to the loan or agreement should be given due consideration while inviting the tenders. 311. If the response to any invitation to tender is poor owing to inadequate publicity or some other reason, fresh tenders should be invited and measures taken to bring the invitation to tender to the special notice of all likely tenderers. 312. Deleted. 313. Deleted. 314. Country of Manufacture.�Tenderers should be requested to furnish information in regard to the country of manufacture and/or origin of the material used in the manufacture of the articles. 315. Evaluation of offers involving payment in a foreign currency.�Offers for imported articles, involving payment in a foreign currency shall, for the purpose of comparison, be converted into Indian Currency at the official rate of B.C. selling foreign exchange ruling on the date of opening of the tender. (Authority: Board's letter No. 92/F(FEX)1/1 dt.10.08.1994.)--acs no.4 page no.60 316. Place of Delivery.�When specifying the point or place of delivery, endeavour shall be made to lay down terms which give all tenderers equal opportunities to put forward their lowest prices. Subject to this, the purchase officers may exercise full discretion regarding the point or place of delivery for articles available in India. For articles needing import, the contracts should be finalised on F.O.B./ F.A.S. basis. Where circumstances or a case justify, import on C.F.R., C.I.F., F.O.R. Indian Port etc., may also be made subject to the terms and conditions laid down by the Government of India from time to time. 316A. Price preference for early delivery.�The following clause should be invariably included in all tenders to enable a higher quotation being accepted for earlier delivery in preference to a lower quotation :� Clause 'A' "Special Condition.�It should be noted that if a contract is placed on a higher tenderer as a result of this invitation to tender, in preference to the lowest acceptable offer, in consideration of offer of earlier delivery, the contractor will be liable to pay to the Government the difference between the contract rate and that of the lowest acceptable tenderer on the basis of final price, f.o.r. destination including all elements, of Freight, Sales tax, Local taxes, duties and other incidentals in case of failure to complete supplies in terms of such contract within the date of delivery specified in the tender and incorporated in the contract. This is in addition and without prejudice to other rights under the terms of contracts". In the acceptance of tender the following clause should be incorporated after obtaining the specific acceptance of the tenderer wherever necessary :� Clause 'B' "Special Condition.�It should be noted that on the assurance of the earlier delivery at the rate of Rs...............................F.O.R..................................offered by you this contract has been placed on you in preference to the lowest acceptable offer of....................................at the rate of Rs.............................................. F.O.R.................................................... In case of failure to complete supplies against this contract in terms hereof within the date of delivery specified herein, you would be liable to pay to Government the difference between the contract rate and that of the lowest acceptable tenderer on the basis of final price F.O.R. destination including all elements of Freight, Sales tax, Local taxes, Duties and other incidentals. This is in addition and without prejudice to the rights of the Government to recover all other losses and damages resulting from delayed supplies including the right of cancellation and repurchase at your risk and expense". 317. Indian Agents for tenderers abroad.�The tenderers abroad should be required to specify if they have agents in India and if so the extent of authority delegated to such agents and the duties they are expected to perform. They should also indicate the commission payable to the Indian agents and whether they are agreeable to payment of the commission in Indian currency. 318. Where tenders are invited for plant and equipment, in which the erection of the plant at site is to be undertaken by the successful tenderer, appropriate terms in regard to delivery at site, erection, testing and commissioning should be included in the invitation to the tender or in general specification and in the resulting contract. In cases involving import, tenderers abroad should be required to specify their agents in India, through whom delivery will be arranged and who will arrange for erection at site and for carrying out such tests on completion as may be specified in the contract. 319. Cost of tender forms.�No account adjustments will be made between the Indian Missions abroad and the purchasing departments in India on the value of tender forms sent and issued on behalf of the purchasing authorities in India and the expenditure on advertisement, postage charges, etc. in the Missions aborad. 320. Deleted. 321. Deleted. 322. Deleted. 323. Classes of tenders.�The following are amongst the different methods of obtaining tenders that may be adopted :� (1) By advertisement ("Open" Tender); (2) By direct invitation to a limited number of firms ("Limited" Tender); (3) By invitation to one firm only ("Single" Tender or "Private" purchase). The primary aim is to obtain the best value possible for the money spent, and the tender system, in one form or another, should be given very careful and serious consideration in all cases as one of the most effective methods for keeping down rates. The exceptions made to the general rule that tenders should be called for in all cases, arc based only on practical considerations in order to avoid delay and unnecessary work in cases of comparatively small value. 324. The "OPEN" Tender System.�This system of invitation to tender by public advertisement in the most open and public manner possible, should be used as a general rule and must be adopted, subject to the exceptions noted in paragraphs 331 and 332 in all cases in which the estimated value of purchase is (i) over Rs. 10 lakh in normal circumstances, for procurement of items other than safety items (ii) over Rs. 2 Crore in cases of emergencies and (iii)over Rs. 2 crores in cases of procurement of safety items and procurement of items whose approved list of vendors is issued by centralised approving agency i.e. RDSO/PU/CORE etc." (Authority Board's letter No. 98/RS(G)/779/10 Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02- 2009) --acs no. 7 & 17---page no. 62 325. When tenders are invited by public advertisement, the issue of the tender forms need not be restricted to firms whose names are on the list of approved contractors (see paragraph 329). Firms not on the list, should, on enquiry, be informed that they are at liberty, on payment of the prescribed fee, to tender for the advertised requirements. Firms which are not borne on the list of approved contractors should be asked to furnish following details along with their quotation, in the prescribed proforma supplied to them with the tender documents :� (a) Income tax clearance certificate, (b) the name and full address of their Bankers, (c) particulars of their previous performance regarding supply of stores similar to those under purchase, (d) details of equipments they possess for manufacture of the stores including quality control and (e) the details of technical staff employed by them. When a tender which p'rima facie appears to be satisfactory has been received from an unknown firm, steps should be taken before any order is placed to ascertain whether the firm is capable of executing the contract in a proper manner. If the enquiries prove satisfactory the order, or a portion of it, may be placed with the firm. If the order or the portion thereof is satisfactorily executed, the name of the firm should be added to the list of approved contractors. If, on the other hand, the enquiries prove unsatisfactory in consequence of which the order is not placed with the firm, the result of the enquiries must invariably be recorded. 326. Deleted. 327. Deleted. 328. The "Limited" Tender System.�Except in the case of procurement of safety items, in case of procurement in emergency and in case of procurement of items whose approved list of vendor is issued by centralised agency, this system may ordinarily be adopted when it is considered to be advantageous, in the case of orders the estimated value of which does not exceed Rs. 10 lakh. In case of safety items, in case of emergency and in case of items whose approved list of vendors is issued by centralised agency i.e. Research Design Standards Organisation (RDSO)/ Production Units(PUs)/ Central Organisation for Railway Electrification (CORE), this system may be adopted in the case of purchases, the estimated value of which does not exceed Rs. 2 Crore. (Authority Board's letter No. 98/RS(G)/779/10 Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02- 2009) --acs no. 7 & 18 page no. 62 329. List of Approved Firms.�For the purpose of the "Limited" tender and "Single" tender procedures, a list of firms, both Indian and Foreign, of known reliability, which have been able to satisfy that they possess the necessary equipment and facilities for production of stores which they offer to supply, shall be maintained. The list should be subjected periodically to examination and revision to weed out firms which have proved unreliable. Any application from a new firm for inclusion in the list should be considered on its receipt. Registration of firms as approved suppliers should be done carefully after assessing the capacity-cum-capability and financial standing of the firm. If need be, services of Research Design & Standards Organisation, Lucknow, R.I.T.E.S., New Delhi or Inspection Wing of DGS & D may be utilised for this purpose. Monetary limit upto which individual orders could be placed on a firm should be carefully fixed keeping in view, Bankers Report, capacity-cum-capability and other financial information contained in firms balance sheet, profit and loss account etc. And registration should be done grading the firms according to following categories :� (a) Those firms capable of executing supply orders valuing Rs. 40 Lakhs and above. (b) Those firms capable of executing supply orders valuing Rs. 10 Lakhs to Rs. 40 Lakhs. (c) Those firms capable of executing supply orders valuing Rs. 5 Lakhs to Rs. 10 Lakhs. (d) Those firms capable of executing supply orders valuing each above Rs. One Lakh upto Rs. 5 Lakhs. (e) Those firms capable of executing supply orders valuing upto Rs. one Lakhs. It has also been decided to revise the existing limits of Rs. 25,000/- and Rs.1 lakh as last revised from those as mentioned under Recommendation Nos. 66 and 67 of the said committee to Rs. 1 Lakh and Rs. 5 Lakh, respectively. The firms that are registered for supply of orders valued above Rs. 1 Lakh should invariably be a manufacturer or his authorised agent. The firms who are registered for executing supply orders valued above Rs. 1 lakh should be pre-inspected by an appropriate officer for assessing capacitycum -capability including effective quality control. The registration should be treated as provisional, fill the firm satisfactorily executes one order, but once the registration is confirmed, no discrimination may be made between new and old registered firms. From this list of approved suppliers, names of the firms to be invited to tender, shall be selected by all the purchase officers. (Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)--acs no. 19 page no. 62-63 Note 1.�Firms who are pre-inspected and considered fit for inclusion in approved list for one Railway should be considered for inclusion in the approved list of other Railways as well. 2.� If for sufficient reasons, which should be recorded, it is decided to issue limited tender enquiries to firms not on the approved list, approval of the next higher authority not below the rank of a Deputy Controller of Stores shall be obtained. At the same time such firms should be asked to get themselves registered with the Railway following prescribed formalities. 3.� Limited tender enquiries should preferably be issued to a minimum of three firms and the last successful supplier should invariably be included. 330. The "Single" Tender System.�This system may be adopted with regard to small orders not exceeding Rs. 3 lakhs in value in the case of non�proprietary articles (provided decision to adopt single tender system for articles exceeding Rs. 5,000/- but less than Rs. 10,000/- in value is taken at a level not lower than a Junior Administrative Grade Stores Officer) and Rs. 5 lakhs in case of proprietary articles (with PAC 'a' certificate) and articles in the process of indigenous development subject to the rates quoted being reasonable. In the event of an emergent situation affecting repair, maintenance, out turn, operation etc., which should be recorded in writing, the purchase of non�proprietary articles may be made on single tender basis: - (i) Up to Rs. 5 lakh per item by Controller of Stores; and (ii) Up to Rs. 7,500/- per item by Divisional Railway Managers in consultation with Associated Finance. There should be no re-delegation of powers of Divisional Railway Managers at (ii) above. (Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)--acs no. 20 page no. 63 331. Powers of General Managers to cover exceptional cases.�The "Limited" tender system may be applied to orders the estimated value of which exceeds the limits specified in paragraph 324 & 328 and the single tender system may be applied to orders the estimated value of which exceeds the limits specified in paragraph 330 with sanction of the General Manager and the concurrence of FA & CAO subject to the following conditions :� (a) that sufficient reasons exist which indicate that it is not in the public interest to call for tenders by advertisements ; (b) that the demand is so urgent that any additional expenditure involved by the elimination of open competition must be incurred ; and (c) that in the case of the proprietary articles, the sanction of the General Manager is necessary only if it is not possible to certify that a similar article is not manufactured or sold by any other firm which could be used in lieu. In each case a note should be recorded giving the reasons for authorising the exception to general rule. Note.� The Controllers of Stores are authorised to exercise General Manager's Power under this paragraph to purchase Steel Items on single tender basis from Stock Yards/buffer imports of M/s. SAIL, TISCO, TISCO at main producer's stock yard prices for the steel items as fixed by Joint Plant Committee or the Government. 332. The General Manager may also decide not to call for tenders of any category in cases where sufficient reasons exist to indicate that it is not in the public interest to call for tenders. In all cases (except those of works contracts based on schedule rates in force on the railway, the individual value of each of which is estimated not to exceed Rs. 50,000/-), where the General Manager decides not to call for tenders, the reasons shall be recorded and communicated by the General Manager to his Financial Adviser. Should the General Manager's power of decision under this rule be delegated to a lower authority (who will exercise it subject to the same proviso) and should the Financial Adviser consider the reasons adduced by such authority to be insufficient or other than in the public interest, he shall represent his views to the authority concerned and, if necessary, consult the General Manager. 333. Deleted. 334. Deleted. 335. Deleted. 336. Deleted. 337. Deleted. 338. Tender Notices shall state.�(a) The short particulars of stores to be supplied or work to be done, specifications, quantity etc. (b) Where and when the tender documents can be seen and obtained also the amount, if any, to be paid for such documents. (c) The place where, the date and time upto which the completed tender forms will be received and time fixed for opening of the tender. 65 338A. Tender Documents.�Tender documents usually comprise of :� (a) Instructions to tenderers. (b) I.R.S. and/or Special Conditions of Contract. (c) Specifications standard or special (and plans/drawings as necessary). (d) Schcdule(s) to the tender giving full particulars of stores to be supplied or work to be done. (e) Agreement form, to be signed by the tenderer in token of his undertaking to supply the stores/carry out the work detailed in the schedule at the rates indicated therein, on the terms and conditions specified in the tender and his agreeing to keep the offer open for acceptance upto a specified date. (f) A statement of deviations from the specifications. (g) A statement of deviations from the conditions of contract. 339. Tender forms shall state inter alia :� (a) The amount of earnest money to accompany the tender and the nature of security deposit, if any, required in the case of an accepted tender ; Note .�The amount of earnest money to be deposited should be sufficiently large to be a security against loss, in the event of contractor failing to furnish the required security within the appointed time after acceptance of his tender, or until such time as the sums due to him form a sufficient guarantee, as the case may be. The earnest money should be in cash or in the form of Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds, which could be either of State Bank of India, or any of the Nationalized Banks or any other Scheduled Commercial Bank. (b) With whom or what authority the acceptance of the tender will rest. (c) Whether or not tenders containing erasures and alterations or the tender documents will be considered. Note .�Such alterations constitute a fresh proposal and cannot be disregarded but must definitely be accepted or rejected. All tenders should, therefore, in equity be placed on the same footing in this respect. The forms for tender enquiries must provide for the acceptance by the tendering contractor of I.R.S. conditions of contract and special conditions of contract (if any). Form S-339 gives a specimen tender form, which can conveniently be adopted. Form No. S-339 Tender No..............................................dated..............................to be received upto 11.00 hrs.on...................................................... Tenderer/s Name...................................................................................................... Item No. Description Specification or drawing ref. Price List No. Approx. Quantity Rate unit Destination at which required 1 2 3 Special Instructions, if any����������������������������To be filled in (1) Tenderer(s) Registration No. by Tenderer(s) ������������������������������� (2) Registration No. with National Small Scale Industries Corporation Ltd............... (For Small Scale Units only). Item No. Rs. P In Figure In Word charges Rate Inclusive of all Dispatch) (Station of F.O.R offered Brand Make or By Delivery Remark Note 1.� In the case of imported goods, the country of origin, maker's name and brand must be the stores offered are a product of Cottage or Small Scale Industr mentioned. In the case of indigenous goods the tenderer(s) must specify maker's name, brand and whether y or medium/large scale industry. 2.� Tenderers while submitting their quotations on forward delivery subject to assistance for grant of office to a Import Licence, should also furnish the following information alongwith their R.O.R. price to enable this rrange for necessary foreign exchange expenditure. (ii) Customs duty at....................................................................... (i) C.I.F. value in Indian Currency........................................................................ ................%. (v) Country (iv) Total value of quotations.............................................................................. (iii) Port clearance, transport, profit etc................................................................... of Origin....................................................................................... The President of India, To Controller of Stores Through : ����������������.Railway. I/we agree to supply the stores noted above at the rates quoted by me/us in accordance with the current Controller of Stores,...................................................Railway, as amended upto date. I.R.S. Conditions of Contract and the Instructions to Tenderers contained in pamphlet issued by the Signature of the 339A. Waiver of Earnest Money. Tenderer(s).............................. �In the case of tenders for the purchase of stores, where the tenderers 340. The right s Financial Adviser, relax the condition of earnest money. arc unwilling to pay earnest money, the Controller of Stores, in specific cases, may, in consultation with hould invariably be reserved to reject any or all of the tenders received without the 341. Opening of Tenders. assignment of a reason. �Tenders should be opened at the specified time and place by the officer nominated for this purpose in the presence of an accounts representative, who shall not be lower in rank value of purchase exceeds rupees Unless good and sufficient reasons exist (which must be recorded) all advertised tenders where estimated than an Assistant/Section Officer . 3 lakhs, should be opened in presence of such of the tenderers or their out to the tenderers present. While opening the tenders no opportunity should be given to any tender agents who may choose to attend and the names of the tenderers and rates quoted by them should be read er to connected with Government service. No tenders should be entertained from any party in his private capacity who is directly or indirectly repudiate, amend or explain the rate or any condition quoted in the tender. (Authority Board's letter No. 98/RS(G)/779/10 Pt. I dated 02.07.99 acs no.7 page no. 67 341B. acceptance of a tender irrespective of whether the tender is decided in parts or as a whole. 341A. Total value of the tender shall be the criterion for deciding the "competent authority" for Constitution of Tender Committee.�Subject to directives issued by Railway Board, a Tender Committee, consisting of a minimum of three members, one each from Stores, Accounts and Indenting Departments, shall be constituted by the authority competent to accept the tenders, to deal with and render advice in all cases of tenders valued over rupees ten lakhs. When General Manager is the authority Committee. competent to accept a tender, the Head of Department concerned shall arrange to constitute the Tender The Tender Committee should be so constituted that an Officer recommending acceptance of a tender in his capacity as a member of the Tender Committee shall not also be the accepting, authority of the same tender. In such cases, the Officer concerned should put up the Tender Committee's proceedings recommendations are within his own powers of acceptance. to the next higher authority for acceptance, not withstanding the fact that the Tender Committee's (Authority Board's letter No. 98/RS(G)/779/10 Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02-2009) --acs no. 7 & 21 page no. 67 341C. A statement of comparative rates and other tender conditions should be prepared by the branch concerned and verified by the Accounts Department. It must be ensured that all tenders received, including late and delayed tenders, are tabulated in the comparative statement and put up to the Tender Committee constituted for the purpose, for its consideration. 341D. As far as practicable, tenders should be finalised within the initial validity of offers. To facilitate this all the information/clarifications necessary for consideration of offers should be called for at one time and not piecemeal. Such clarification should not change the substance or price of the original offer. 342. The lowest tender should ordinarily be accepted. Acceptance or rejection of tender is left entirely to the discretion of the authority entrusted with this duty and no explanation can be demanded of the cause of rejection of his offer by any person making a tender. Such an explanation should, however, be recorded and may be called for by superior authority. Reasons for departing from recommendations of the Tender Committee should also invariably be recorded by the accepting authority. 342A. Where special terms and conditions are accepted, they should be incorporated in the contracts issued which should ultimately contain no more or no less than what is contained in the accepted tender or mutually agreed to in post tender correspondence or negotiations with the tenderer, and approved by the accepting authority. Incorporation of terms and conditions which are not in the tender or which have not been specifically agreed to by the tenderer will not create a legally binding agreement but will amount to a "counter offer" only, which shall require consent of the tenderer before a binding contract takes effect. 342B. Intimation of Acceptance of Tenders.�A contract is concluded upon communication of the acceptance which must be within the time prescribed. Where post is the medium of communication between the parties, the acceptance is complete as soon as it is posted by registered post or under certificate of posting. 343. Freight Factor in Purchase of Material.�Railways should in purchasing their requirements of stores or materials, ordinarily obtain quotations from supplying firms, F.O.R. destination and, in selecting tenders, also take into consideration the freight element in finally determining the cheapest source of supply. 344. Dividing of Contracts.�Where warranted, (for reasons to be recorded), the tender quantity may be split and tender decided in favour of one or more firms depending on merit of each case, in consultation with FA & CAO and approval of the authority competent to accept the tender, having regard to the following factors :� (i) Vital or critical nature of items. (ii) Quantity to be procured, (iii) Delivery requirements, (iv) Capacity of firms in the zone of consideration. (v) Past performance of firms. Where parallel rate contracts are awarded on two or more firms, care should be taken that, subsequently each of the firms is afforded relatively equal opportunity for making supplies to the railway by purchase orders being placed on each in turn for quantities proportionate to the quantity notified in the rate contract. 345. Locomotive and Rolling Stock Components.�If after inviting tenders for locomotive and rolling of stock components of any considerable value, which are manufactured by firms in India, it is intended to place an order for imported articles, the sanction ot the Railway Board should be obtained. 346. Contracts for Works & Stores.�All tenders for Works and Stores valued over Rupees 8 crores in case of indigenous tender and over Rupees 2 crores involving F.E. should be sent to Railway Board with recommendations for their acceptance. (Railway Board�s letter No. 98/RS(G)/779/10 Pt. I dt. 02.07.99) --acs no. 09 page no. 68 Note.�Girders, structural steel work, rolling stock and other like materials which involve manufacture come under category of works and not stores for the purpose of determining the powers to enter into contracts. 347. Deleted. 348. & 349. DELETED (Railway Board�s) letter No. 95 /RS (G) / 768 dt 17.08.1995 conveying Ministry of Finance S.O.M No. F. 23 (2) �E.II(A)/92 dt. 24.6.92)--acs no.3 page no.68 & 69 350. Inspection.�All articles whether manufactured in India or abroad should be subject to inspection before acceptance and articles for which specifications and/or tests have been prescribed by competent authority, should be required to conform to specifications and/or to satisfy the prescribed test or tests which may be carried out during manufacture or before or after despatch from suppliers premises. 351. Nomenclature.�As far as practicable, standard forms Of nomenclature or description should be employed in the invitation to the tender to encourage free competition and the terminology in all cases should be such as to show beyond all reasonable doubt what exactly is required, the place of delivery or installation, the warranty and maintenance requirements and other pertinent terms. The appropriate specifications should be annexed to or quoted in the invitations to tender, it should be stipulated in the condition of contract that the articles supplied will be subject to inspection and/ or tests prescribed in the specifications before acceptance. In cases where the specifications or drawings cannot be annexed to the invitations to tender, it must be specified where the specifications or drawings can be had or seen. Note 1. In case of stores, no particular make or brand should be specified in the invitations to the tender, except in those cases where a particular plant or machine patented under a particular name is required or when spare parts are needed for such plant or machinery. 2. Any additional information, clarification, correction of errors or alterations of tender documents should be promptly advised to all those who had requested the original tender documents and additional time as warranted should be given for submission of tenders. 352. In the case of important construction works let out on contract, articles required for the construction of such works may be supplied by the contracting firm provided that when specifications and/or tests have been prescribed for such articles they should conform to such specifications and/or satisfy such tests. 353. When tenders for important construction works are invited, the officer concerned should also stipulate in the invitation to tender, that the articles required for the construction of such works must comply with specifications prescribed for such articles, which should be annexed to or quoted in the invitation to the tender. The articles should be inspected and/or tested in accordance with provisions of the specifications before acceptance and use on the work. 354. All purchase officers should take steps to ensure that adequate inspection arrangements are made in each case. Services of Research Design and Standards Organisation, Lucknow, Rail India Technical and Economic Services Ltd., New Delhi, Railway Adviser, London or Director General of Supplies and Disposals as required may be utilised for, this purpose. 355. Deleted. 356. As soon as contract has been awarded for articles which require inspection and/or test during manufacture or before despatch/shipment from abroad, a complete copy of the contract with specifications, drawings, conditions of contract and all other relevant documents should be sent to the nominated inspecting agency with complete instructions for inspection and full address of the manufacturers. The contractors should also be informed of the agency, nominated to carry out the inspection during manufacture or before shipment against the contract, with whom they should further coordinated. 357. Deleted. 358. In case of orders for plant and machinery, whether purchased in India or obtained from abroad, which include erection and test at site of work, arrangements for inspection and tests after erection at site can also be made through Research Design & Standards Organisation, Lucknow, Rail India Technical & Economic Services or the Director General of Supplies & Disposals. 359. Inter-Departmental Purchases.�Nothing in this chapter shall be deemed to prohibit the purchase of articles by one department of railway from another. 360. Deleted. 361. Deleted. 362. Deleted. 363. Deleted. 364. Deleted. Composition of Tender Committee for dealing with tenders for purchase of Stores & Powers of Stores Officers for acceptance of tenders as determined by Rly. Board Paras 341 (b) & 342 TENDER COMMITTEE Value limit Acceptance by Stores Consuming Deptt. Finance I (1)Rs. 10 Lakhs to Rs. 30 Lakhs J.A.G. Sr. Scale Sr. Scale Jr. Scale (2) Rs. 30 lakhs to Rs. 1 Crore S.A.G. J.A.G. J.A.G. Sr. Scale (3) Rs. 1 Crore to Rs. 2 Crore SAG. J.A.G. J.A.G. J.A.G. (4) Rs. 2 Crore to Rs. 15 Crore PHOD/CHOD S.A.G. S.A.G. S.A.G. (5) Rs. 15 Crore to Rs. 25 Crores. A.G.M.* PHOD/CHOD PHOD /CHOD S.A.G. (6) Rs. 25 Crores and upto Rs. 50 Crore. G.M. PHOD/CHOD PHOD /CHOD PHOD /CHOD Note: - *In units where there is no AGM, the accepting authority will be GM against item 5 as well of above table. (Authority Board's letter No. 98/RS(G)/779/10/Pt. I & 2008/RS(G)/779/9 dated 02.07.99 & 06-02- 2009) acs no. 10 & 22 page no. 71 ***************** CHAPTER IV 401. General.�The rules in this chapter apply only to contracts i.e. agreements enforceable by law, which relate to the execution of works of constructions, repair or maintenance or to the conveyance of supply of materials. The rules do not apply to petty purchases of Rs. 1 Lakh and under, in respect of which General Manager is competent to frame such instructions, as he may consider necessary. Note: - (i) The term "General Manager" used in these rules is deemed to mean besides the General Managers of Railways, D.G., RDSO, Chief Administrative Officers and Engineer-in-Chief in independent charge, directly under the Railway Board. (ii) The terms "Financial Adviser" is deemed to mean the Accounts Officer. (Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009).acs no.23 page no. 72 402. The following fundamental principles are enumerated for the guidance of authorities who have to enter into contracts or agreements. (i) The terms of a contract must be precise and definite and there must be no room for ambiguity or misconstruction therein. (ii) As far as possible legal and financial advice should be taken in the drafting of contracts before they ace finally entered into. (iii) Standard forms of contracts should be adopted, wherever possible, the terms to be subject to adequate prior scrutiny. (iv) The terms of contract once entered into should not be materially varied except in consultation with the competent financial authority. (v) No contract involving an uncertain or indefinite liability or any condition or an unusual character should be entered into without the previous consent of the competent financial authority. (vi) Whenever practicable and advantageous, contracts should be placed only after tenders have been openly invited and in cases where the lowest tender is not accepted, reasons should be recorded. (vii) In selecting the tender to be accepted, the-financial status of the individuals and firms tendering must be taken into consideration in addition to all other relevant factors. (viii) Even in cases where a formal written contract is not made, no order for supplies & c, should be placed without at the least a written agreement as to price. (ix) Provision must be made in contracts for safeguarding governments property entrusted to a contractor. (x) In entering into long term agreements or contracts considerations should be given to the desirability of providing for the railway unconditional power to cancel the agreement at any time after the expiry of six months' notice to that effect. (xi) The Auditor-General and under his direction, other audit authorities have power to examine contracts and to bring before the Public Accounts Committee any cases where competitive tenders have not been sought, or where high tenders have been accepted, or where other irregularities in procedure have come to light. 403. "Lump Sum "Contracts.�The Lump Sum Contract is a contract under which the contractor engages to carry out a work or effect supply as specified and within a given period for a fixed total sum; his receipt of this sum being dependent on his completing the work or supply to specification and time, irrespective of the actual quantities and kind of work done or materials supplied in achieving his result. 404. In the case of such contracts a scale of rates or prices may be agreed upon by which enhancement of or reduction from the lump sum may be regulated in the event of any departures from the work or supply as specified being made subsequently under the orders of competent authority; or by which reduction may be made, at the discretion of competent authority for failure on the contractor's part to conform to specification. 405. Schedule Contracts.�The Schedule Contract is a contract under which the contractor engages to carry out a work or effect supply as specified and within a given period at fixed unit rates or prices for each of the various items comprising such work or supply, the sum he is to receive depending on the actual quantities and kinds or work done or materials supplied in completing the work or supply to specification and time. It is not repugnant to the above definition to show in such contracts the approximate amount of the contract, based on approximate quantities and the fixed unit rates. 406. Piece-Work Contracts.� This means a contract under which only unit rates or prices for various kinds of work or materials are agreed upon, without reference either to the total quantity of work to be done or material supplied; or to the quantity of work to be done or material supplied within a given period. Note.�(i) Agreeable to the above definition of a price work contract:� (a) The Railway may indicate its intention as to the maximum value of the orders it is likely to place; but the contractor cannot claim to be given an order for more than one unit of work or supply. (b) After the contract is executed, specific orders for work or supply may be placed against it. (c) The rate of progress may not be specified; but if it is not satisfactory the contract can be terminated. (ii) The "Lump Sum", "Schedule" and "Piece-work" forms of contract are primarily intended for application to "Works" contracts. 407. Rate Contracts.�The Rate Contract is a contract under which, during the period of its currency, the contractor engages to supply materials on demand, irrespective of quantity, at fixed unit rates or prices, within a given period of the receipt of such demand. 408. Running Contracts.�The Running Contract is one under which, during the period of its currency the contractor engages to supply, and the other party to the contract to take, a specified quantity (with a percentage tolerance either way) of materials, as and when ordered, at fixed unit rates or prices, within a given period of the receipt of such order. Note.�The "Rate" and "Running" forms of contract are primarily intended for application to "Stores" contracts. 409. " Fixed Quantity" Contract.�This means a contract for a definite quantity of materials to be delivered in one or more instalments, delivery of each instalment being completed by a definite date. 410. Competency of Authorities to Execute Contracts .� On behalf of the President of India contracts may be executed only by or with the approval of the authority empowered so to contract. Such powers are restricted as to "class" and as to "amount". The competence of authorities, as to "Class" is determined by the President of India and is specified in Appendix II to this code. The powers so entrusted may not be delegated. 411. The competence of authorities, as to "amount" is determined by the financial powers of each authority in this respect. The powers so entrusted may be delegated subject to any restrictions which may be imposed by the Railway Board. 412. Restrictions as to "amount" shall not prevent an authority from giving out to different contractors a number of contracts relating to one work, even though the sum of such contracts may exceed the pecuniary limits of its powers. 413. No authority shall execute a contract:� (i) which is beyond its powers as to either "class " or "amount"., (ii) which relates to a work, the incurrence of expenditure or liability on which is not authorised under current rules and orders regarding control of expenditure., (iii) which involves, in respect of the work to which it relate, an excess over the estimate greater than is within such authority's competence to sanction; (iv) any provision of which contravenes any standing rule or order of higher authority ; provided always that an authority may sign any contract within its powers as to "class", with the approval of the authority competent to execute it. Note.� In cases where materials are supplied by the railway to the contractor for the execution of a work, the amount of the contract shall for the purpose of determining the authority competent to execute it, be taken to be the net amount to be paid to the contractor, exclusive of the cost or value of the material so supplied. 414. On behalf of the contractor the signature of only such person or persons as are competent to bind him legally shall be accepted on a contract. 415. Contract Documents.�Every contract shall be so framed as to place beyond all reasonable doubt all the matters upon which parties thereto intended to agree, and the matters to be agreed upon shall include in detail, the following :� (a) What the contractor is to do, when, where and to whose satisfaction it is to be done ; (b) What Government is to do ; and on what terms . (c) What payment is to be made; what it is to cover, to whom it is to be made; and the method and basis of making it. (d) The responsibility of the contractor in respect of adequate supervision, care of Government property, and the protection of outside interests and those of his staff and workmen. (e) The terms on which variations and modifications (under paragraphs 446 to 447), if any are to be permitted; the authority competent to order and to assess them, and the occasion and basis of such assessment. (f) The measures to be adopted in the event of a breach of the contract by either party thereto, and the method of and grounds for the determination thereof. (g) The method of settling disputes. 416. The documents forming integral part of a contract are : (i) the tender comprising of Instructions to Tenderers, Conditions of Contract, Standard or Spccial, The Specification, Standard or Special, (and any plans/ drawings as necessary), the Schedule of items, quantities and rates, Agreement Form and Tender form, (if any). (ii) Contractors offer. 75 (iii) Advance acceptances of tender, (if any). (iv) Formal Acceptances of Tender. (v) Any document making any change or deviation in any of the terms as embodied in the Advance Acceptance of Tender or the formal Acceptance of Tender. Note.�"Rates" are included in the schedule of items only in case of "work" contracts, where the tenderers are instructed to quote a percentage above or below the schedule rates at which they offer to carry out the work. 417. Conditions of Contract.�The conditions of contract may be either Standard or Special. The Standard Conditions of contract including special conditions prescribed by the Railway Board are reproduced in Appendix III to this code. 418. Standard Conditions are preferably embodied in all contracts to which they are applicable. In the event of such conditions proving defective in any way, it will be the duty of the General Manager to report the fact to the Railway Board, if such conditions were prescribed by them, and in all other cases to arrange, in consultation with his Legal and Financial Advisors, to amend or amplify them suitably. 419. Any unusual Conditions of Contract should, before they are imposed, be approved by the General Manager, acting in consultation with this Legal and Financial Advisor; or, if the contract to which they relate is beyond his powers to execute, by the Railway Board. Note.�These powers shall be exercised by the Controller of Stores to the extent delegated to him by the Rly. Board. 420. The interpretation to be placed on the word "unusual" is left to the General Manager who will use his discretion both in issuing instructions as to the cases to be submitted to him and also in deciding which cases should be referred to the Railway Board. 421. The Conditions of Contract adopted, should take account of the Purchase Policy Rules (Chapter III) and the considerations in paragraphs 422 to 428. 422. For a contract to be legal, there must be "lawful consideration" for performance. Such "consideration" may take a positive form (i.e., an agreement to order a certain quantity of work or materials) or a negative form (i.e. an agreement not to order certain work or materials from any one but the contractor). The negative form of "consideration" may advantageously be employed in cases of the supply of materials of a perishable nature ; or which it is not necessary store; or for the requirements of which it is not possible to estimate; or where a contractor offer to carry out all work on a district at a fixed percentage below Schedule Rates. 423. Time should ordinarily be "of the essence" of the contract and it should be specifically so stated. It may in some cases be found advisable to avoid "penalty clauses" by lowering the basic rate and providing for an enhanced rate, which would bring it up to standard, if the contract is completed by the time specified. A penalty clause of any nature is, in any case, pre-eminently a matter on which legal advice should be obtained. 424. Control of material issued to the contractor.�In contracts involving use of Railway materials, strict control should be exercised over the proper utilisation and accounting of the materials issued to the contractors cither free or on payment. For this purpose following details should be incorporated in the contract:- (i) Particulars of raw materials to be supplied and the terms on which they are to be supplied. (ii) Whether scrap left on completion of the contract will be the property of the railway and if so, the quantity thereof. (iii) Standard estimate of each type of raw material required per unit of finished goods and total quantity of raw materials to be supplied. (iv) The rates and other terms applicable for the recovery of the materials. 425. Where tools plant, patterns or other railway property are lent to a contractor for the performance of his contract, the term of such loan should clearly be specified. In order to safeguard railway property adequately it is desirable that in addition to providing that any damage or deterioration is made good, a provision should exist that the contractor is responsible for "loss or destruction". Under the Law of Bailment, the contractor, in the absence of any special contract is "not responsible" for loss, destruction, or deterioration, if he has taken the amount of care that a man of ordinary prudence, would under similar circumstances take of his goods". 426. In Lum Sum Contracts and Contracts for Machinery and Plant, it should, where feasible, be made a condition that the cost of all repairs necessary, until the work or machinery is finally accepted and for a specified period thereafter, should be borne by the contractor. 427. Special conditions should not be taken on to Standard Conditions until the effect of doing so has been carefully examined and consequential changes carried out. 428. One of the conditions should be that any gift or offer of illegal gratification made by the contractor or others on his behalf, renders the contract void. 429. Specifications.� Stores should be purchased to specification whenever possible rather than a sample. If Indian Standards accepted by the Railway Board for adoption on the Railway exist, these should be used, failing which Indian Railway Standard Specification/D.G.S.&D specifications should be specified. Where none of these specifications exist, the British Standards Institution Specifications, DIN or ASTM specifications should be used. In the absence of any standard specification, local specifications should be prepared. For special plant and materials specifications should be prepared by or in consultation with the consuming branch. If further technical advice is required reference should be made to the Research Design and Standards Organization of the Railway Board. Note.�Specification should not be altered after opening of tenders unless the alteration is minor and of no financial consequence. Where specifications in a tenders have under gone a major change before the tenders are finalised, fresh tenders should be invited. Where, in urgent cases, recourse to retendering is not practicable, negotiation may be held with all tenderers who quoted against the original tender, after obtaining sanction of competent authority. 430. Where qualities which are difficult to specify have to be defined, such as "Finish", a reference may be made to standard samples and in all such cases it should be made clear that sample is supplementary to and docs not supersede the specification or drawing. Intending tenderers should be given adequate facilities to inspect or obtain such standard samples. They should be informed at the same time that notwithstanding any defect in the sample, the supplies will be required to conform fully to any specification or drawings which may exist. Tenderers should normally not be asked to submit samples in cases where definite specifications, drawings, or purchaser's scaled samples exist, unless the nature of stores is such that it not covered adequately by specification drawings or the store is of such a difficult nature (as proved by experience) as to necessitate calling of samples. Where it has been decided to make a purchase calling samples from tenderers, the samples should invariably accompany the tender failing which the tender should be summarily rejected. 431. When there are two or more alternatives given in a specification, it should be definitely stated what alternative is to be followed. 431-A. Warranty.�-A warranty clause should be included in all cases where defects come to light only when the stores are put to use and not before by visual or even laboratory inspection. 431-B. Marking of Railway Materials.�In order to prevent pilferage as well as misuse of Railway Stores, the system of marking of Railway materials with distinguishing marks in as large a measure as possible, should be adopted. 432. Rates.�All rates should be entered in a contract in words as well as in figures and what they are to cover should be clearly stated in the contract. 433. Subject to any general or specific order at the time being in force, the authority empowered to execute a contract is competent to decide on the rates there fore provided that where such rates are in excess of the Market, or Standard Rates of the Railway, or rates quoted by railway workshops for the manufacture of the stores in question, the authority should record the reasons for adopting the higher rates. 434. Quantities.�All quantities should be entered in a contract in words as well as in figures. 435. Nomenclature.�As far as practicable, standard forms of nomenclature or description should be employed in a contract, the terminology should be such in all cases as to show beyond all reasonable doubt that exactly is required. 435A. Delivery.�A contract for sale of goods may be :� (a) an entire contract (b) a severable contract The fact that a contract for delivery in instalments is divisible in performance, does not necessarily make it a severable contract as would be evident from following delivery stipulations which illustrate these two types of contracts:� (i) An entire contract.�"Delivery to commence after 45 days from the date of receipt of the con tract and to be completed @ 20,000 units per month i.e. by 30 th April, 1985 or earlier." (ii) A severable contract.�Delivery date�7410 units 15-2-1986, 8510 units by 31-3-1986. The delivery terms provided in a contract should therefore, be worded carefully and as for as possible specific date/dates should be indicated by which supplies should be completed by the contractor, so as to allow no room for ambiguity. 436. Agreement Forms.�The Form of Agreement may either be the Tender Form itself or may be provided separarely. The conditions of contract, Specifications, etc., may be embodied in the Agreement Form or may be an annexure thereto; or may, provided they are readily accessible to the contractor, be merely referred to therein. 437. Competency of Authorities to vary Contracts.�The power to vary the terms of a contract lies only with the actual parties thereto. The contractor, and his sureties, if any, must therefore be consenting parties to all variations, which should be the subject of a Subsidiary Agreement stating what is to be varied and what will remain unchanged in the original contract. The drafting of this agreement should be the subject of very careful scrutiny, to ensure that the conditions, specifications, etc., of the main contract are adequate for and applicable to the variation, or that the latter is made self-sufficient in these respects. Such Subsidiary Agreements should be regarded as fresh contracts and entered into before effect is given to the variations. 438. The powers of authorities to effect variations on behalf of the President of India are governed by the rules in paragraphs 439 to 445. The reasons and justifications for any variation in the terms of a contract should be invariably recorded in writing. 439. (a) Variation of Indian Railways Standard Conditions of Contract.�These may be varied only with the sanction of the General Manager, in exceptional cases within his powers of placing contracts, in consultation with his Financial Adviser and after taking legal advice, if necessary, these may be varied with the sanction of the authority that approved the original contract acting in consultation with his Financial Adviser and after taking legal advice, if necessary. The Controller of Stores may also waive operation of clauses relating to 'Liquidated damages', 'Risk Purchases' and 'Arbitration' appearing in the IRS Conditions of contract as a standing measure on the Railways/P. Units in respect of contracts valued up to Rs. 1 lakh at the post contract stage in order to avoid disproportionate administrative expenditure in small recoveries. (b) All other variations including minor relaxation in specifications and drawings .� These may be varied with the sanction of the authority that approved the original contract acting in consultation with his Financial Adviser and after taking legal advice, if necessary. 440. Variation of the rates of items.�Contracts in which a price variation clause is included, the rates may be varied by the authority which approved the original contract with the concurrence of his Financial Adviser. If the total value of the contract after allowing for the variation is beyond the powers of the authority which approved the original contract, the sanction of the higher authority within whose competence as to amount it lies, should be obtained. 441. Variation of Quantities of any item.�These may be varied by the authority which approved the original contract to the extent deemed necessary provided that the Indian Railway Code Rules relating to control over expenditure are not contravened thereby, and provided also that the total value of the amended Contract shall not exceed the powers of the authority that approved the original. Where materials are required during a contract period in excess of the quantities contracted for, and such excess is not sufficiently large to justify the invitation of fresh tenders, there is no objection to the quantities under the existing contract being increased suitably. Effort should, however, be made to secure more favourable terms for the increased quantity. Note .�Depot Officers/ Inspecting Officer / District Officers of the consuming department are authorised to accept deliveries short or in excess up to 5% of the total value of the contract or Rs.1 lakh whichever be less, provided as a result thereof the normal powers of purchase of the Controller of stores are not exceeded. No formal amendment of contract w ill be necessary in such cases and also in cases (other than those falling under Para. 711-S) where value of supplies short or in excess does not exceed Rs. 100/- irrespective of the %age involved. (Authority: Railway Board�s letter No. 98/RS(G)/779/10(CS) (3/03)dated 25.02.2003) --acs no.14 page no.78 442. Repeat Orders.�Where materials are required during a contract period in excess of the quantities contracted for, and such excess is not sufficiently large to justify the invitation of fresh tenders there is no objection to the quantities outstanding under the existing contract, if any, being increased suitably, provided that as a result of negotiations, more favourable terms are secured for the purchase than would have been possible by the invitation of fresh tenders. 443. No repeat orders are ordinarily to be placed on previously accepted rates obtained on Limited or Single tenders. 444. Variation of the items.�These may be varied at discretion by the authorities which approved the original contract to the following extent, namely ; existing items may be deleted or additional Items inserted at rates, which, agreeable to any general or specific orders at the time being inforce, may be decided by the authority making the variation ; subject only to the two provisions of the Rule in subparagraph (441) above. 445. Extensions of delivery dates.�No correspondence should be entered into with the contractor after expiry of the contract delivery period, which has the effect of keeping the contract alive. Ordinarily no extension of delivery date should be granted unless it is specifically asked for by the contractor. When asked for, the extension may be sanctioned at the discretion of the competent authority (which signed the original contract) provided :� (a) that the rate in the contract was not accepted ignoring lower tenders in consideration of the date of delivery ; (b) that he is satisfied that the delay will not cause loss or damage, or in case of special purchases, the indenting party certifies that no loss on account of late delivery would be sustained; and (c) that in any case which does not satisfy any or both of the above conditions, such sanction shall be given only in consultation with his financial Adviser and after taking legal advice, if necessary. Note.�(1) In case of severable contracts extention in delivery period will be necessary for each instalment separately. (2) Unless other wise specified in a contract, the Depart officers/Inspecting Officers/ Consignees may at their discretion, accept delayed supplies of indigenous or imported stores with in the time limit specified below: - Time Limit (a) Contracts valued up to Rs. 3 Lakh 6 months (b) Contracts valued over Rs. 3 Lakh but not exceeding Rs. 6 Lakh provided the initial delivery period does not exceed 6 months. 21 days The relaxation will, however, not apply to: - (i) contracts where higher prices have been paid for earlier delivery. (ii) contracts for supply of stores subject to severe market fluctuations. (iii) contracts in which provision is made for recovery of pre-estimated damages. (iv) contracts placed against urgent, operational express and Works Programme indents. (Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009) �acs no. 24 page no. 79 446. Modifications.� Modification of Conditions, Specifications, Quantities, Rates, etc., for which provision has been made, either expressly or by implication, in the contract itself shall not be deemed to constitute a variation thereof provided that they are carried out only to the extent, and by or by order of the authority, specified therein. The reasons and justification for any modifications in the terms of a contract shall be invariably recorded in writing. 447. Such modifications are, however, subject to the proviso that if, as a result thereof, the amount of the contract exceeds' the powers of the authority with whose approval it was executed, the sanction of the authority within whose competence as to amount it is, shall be obtained. They are also subject to the Indian Railway Code Rules relating to Control over Expenditure. 448. Security.�Security where necessary, shall, except under general or special orders from the Railway Board, be taken for the due fulfilment of a contract. Note .�Security deposit need not be taken from other Railways, Government Departments, Small Scale Industrial Units recognised by the National Small Scale Industries Corporation and firms borne on Railway's list of approved suppliers for items for which they are registered. Security Deposit also need not be taken from firms approved by RDSO, DLW, CLW, ICF and CORE in respect of the items for which they are registered with them. (Authority:- Board's letter No. 88/RS(G)/779/36 dated 03.06.1996.)--acs no. 5 page no.79. 449. The security may be :� (i) Government securities at 5 per cent below the market value. (ii) Deposits Receipts, Pay Orders, Demand Drafts & Guarantee Bonds of State Bank of India, or any of the Nationalised Banks or any Scheduled Commercial Bank. (iii) Bond of Indian Railways Finance Corporation and KRCL Bond (iv) A deposit in Post Office Saving Bank (v) Deposits in National saving Certificates, (vi) A percentage deduction, ordinarily 10% from periodic payments made on account of work done or supply made. (Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009).acs no. 25 page no. 79 450. General.� Where the rules in this Chapter call for a consultation between the General Manager and his Financial Adviser and their views are at variance, a reference should be made to the Railway Board. 451. Before any legal proceedings arising out of contracts are entered upon, the sanction of the General Manager acting in consultation with his Legal and Financial Advisers, should be obtained. 452. It is the duty of all authorities concerned with the execution or carrying out of contracts to see that the terms of such contracts are strictly enforced and that nothing is done by them that would tend to nullify or vitiate a contract. 453. Where the terms of contract expressly admit of waiver, such right may be exercised only by the authority designated and for adequate reasons, which should be placed on record. In the absence of such provision, non-enforcement of a Condition of Contract constitutes a "variation", thereof and should be dealt with as required by paragraphs 437 to 445. 454. Stamp Duty.� Contracts are exempt from stamp duty, in cases where Government (as opposed to the contractor) would, but for this exemption, be liable to pay such duty. 455. Execution of Contract prior to commencement of works or supplies.� (i) No contractor should be permitted to commence work or supply materials until the relevant contract has been signed by the parties competent to do so. (ii) Exceptions to this rule are permissible only in cases of extreme urgency such as works or supplies necessary to safeguard life or property or to repair damage to the track caused by flood, accident or other unforeseen contingency, so as to restore and maintain through communication. Even in such cases, if circumstances permit some form of written contract, or atleast an agreed statement of rates to be paid, should be prepared before commencement of works or supplies, the intention being that the conditions, specifications, etc., with sufficient items and rates to carry on with, should be agreed upon beforehand. (iii) In other exceptional but less emergent cases, in which the commencement of work or supply cannot be postponed till the preparation and sanction of the contract documents, prior consultation with the Financial Adviser shall be necessary. (iv) In all cases of departure from Sub-rule (i) above, the completion and execution of the main contract should be proceeded with expeditiously. 456. In those cases in which the authority concerned has no power to agree to a variation from schedule of the essential rates, emergency powers to fix rates might be granted, such powers being modified or withdrawn, if abused. 457. The employment of a contractor in no way relieves the authorities concerned from responsibility as to the standard or progress of the work or supply. Contracts framed agreeably to the provisions in the foregoing paragraphs provide adequate powers for securing satisfaction in these respects. . 458. The capability and financial status of a contractor should be investigated before any contract is placed with him. 459. Power to withhold payment of any sum of money due to a contractor and to retain it under a lien for setting off claims whether arising out of the particular contract or out of any other transaction or claim whatever against the contractor, should be secured. CHAPTER V 501. Scrutiny of Indents/Contracts.� Copies of all Indents on central purchase agencies and contracts for stores or works valued over Rs. 4 Lakhs for items other than safety items and Rs. 8 Lakhs for safety items should be furnished to the Chief Accounts Officer for prior scrutiny and vetting. (Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)acs no. 25 page no. 81 The indents shall be scrutinised to see that:� (i) the quantity indented is not in excess of the quantity vetted previously in the contract estimate, recoupment sheet etc. (ii) that the correct head of purchase has been indicated and the expenditure has been shown as chargeable to the current year or advance grant according as the material is expected to be paid for during the current year or the subsequent years. (iii) that the indent has been signed by an officer competent to do so. The scrutiny of contracts/Acceptance of Tender should be conducted with reference to the purchase policy and rules, the Indian Railway Standard conditions of contract and general instructions issued by Railway Board or any other competent authority from time to time. Any departures therefrom should be reported to the authorities concerned for rectification. The agreement should be checked to see that:� (i) approval of the competent authority (as defined in Para 410-S) has been obtained. (ii) it is signed by an authority competent to do so. (iii) it is in the standard form and variations from the standard form, if any, are regular. (iv) that the rates and other particulars or conditions shown in the contract are in accordance with those quoted by the tenderer and accepted by the competent authority and that the total amount payable under the contract has been correctly indicated. 502. The existing price list rate, the last purchase rate and the date of such last purchase should be considered in checking the rate of the contract; if any large difference exists, it should be specially examined to make sure that the difference is not due to any failure to follow faithfully the procedure prescribed for the purpose of securing the lowest rates. It should also be seen that no unusual clauses exist in the agreement, which are likely to lead to loss. In cases of acceptance of tenders other than the lowest the justification set forth in support should be examined to see if it is in order. It should further be seen if the contract provides for the levy of liquidated damages from the supplier in case of delay in the delivery of stores and for such other safeguards in the interests of Administration. 503. Register of Agreements.�After audit the main particulars of the agreement should be entered into a special register maintained for the purpose (S. 503) and the agreement filed for safe custody. This register should show inter alia.:� (a) Name of the Contractor and period of Contract; (b) Particulars of Contract; (c) Quantity ; (d) Rate and important terms of delivery; (e) Amount of security ; and (0 Penalty, if any. This register facilitates reference to the original agreement and the check of contractors' bills, as it contains the important clauses of the agreement, shows the amount of agreement, the particulars of supplies, the amount of security, the penalty to be enforced and the terms of payment. The entries in the register should be made over the signature of the Section Officer. Separate parts of the register should be assigned for each class of stores. CHAPTER VI CONTRACTS ESTIMATES 601. Estimates for Procurement.�The Controller of Stores has to estimate in advance the requirement of each item he holds in stock with a view to make timely procurement. The actual procurement may be through a Central Agency (DGS&D, Railway Board etc.) or directly by the Controller of Stores. For items procured through a Central Agency the estimate should be prepared on annual requirement basis to be submitted to the Central Agency as per the schedule fixed by them. The 12 months period for which the requirement is estimated is called "Contract Period". The period between the date of preparation of the Estimate Sheet and the beginning of the contract period is called "Interim Period". Estimate of requirement is made simultaneously for the contract period as well as Interim Period. For items procured by the Controller of Stores directly, the estimate may be on annual basis or on maximum/minimum basis as decided by Controller of Stores. ANNUAL PROCUREMENT SYSTEM 602. Time Table.�Before the Controller of Stores can estimate the quantities required for the interim period and contract period for the entire railway, he has: (i) to obtain detailed information from the Depots of their estimated requirements. (S-603 to 608 &615). (ii) to consolidate the information thus obtained so as to arrive at the total estimated requirement forth Railway.(S610,611&616). (iii) to review the current contracts for supplies of stores in light of the actual balances of requirement known from these estimates and with a view to modify the scope of supplies under these contracts. (S 618). For efficient working of the procedure a total time table laying down the dates by which the several stages of the working of preparation, scrutiny and consolidation of the estimates should be completed should be framed by each railway. The time table will ensure that requirement of various depots is simultaneously received in COS' office. For convenience of work, this time table should be arranged groupwise and should ensure that the work is distributed uniformally over the year. 602 (A). Depending upon the time table fixed by the Controller of Stores, the Depots in turn should decide upon their own time table to ensure timely submission of their contract estimates to the Controller of Stores. 603. Contract Estimates of Depots.�The basic purpose of the annual estimate sheet is to advise the requirement of Depot for the contract as well as interim period. It should also contain adequate data so that checking is possible in COS' office. A typical coverage of data may be as indicated below:� Depot PL No. Unit Nomenclature Contract Period Consumption during last 3 years During current year Average rate of consumption Estimated rate of consumption (Reasons for variations, if any, between average consumption and estimated consumption should be recorded). Stock on hand Covered dues Uncovered dues Estimated requirement for the interim period Estimated requirement for the contract period However where additional information is available in the computerised system the extent of such information may be determined by the COS. The Estimate Sheet should be submitted in duplicate to COS' office one copy should be returned to the Depot alongwith an extract of estimate sheets (Para S. 617). 604. Deleted. 605. Guidelines on filling up Contract Estimate Sheets.�Theoretically speaking the requirement for the interim period should be NIL and for the contract period it should be 12 months average consumption. However, in actual practice there may be variations. Cases may occur where the quantities ordered for the contract period prove to be either excessive or in-sufficient. The depots prepare their contract estimate sheet a few months in advance of the contract period. This gives an opportunity for an automatic review of the current contract period (which is interim period for the next contract period). Depending upon the actual position, requirements for the interim period and contract period should be calculated by the depot. There may be cases that the estimated requirement shown by the depot would be negative indicating that the depot is having excess stock. The estimated requirement submitted by the depot may also show variations from actual average consumption in the past. In all such cases the depot should give adequate remarks explaining the reasons for such differences. 606. Deleted. 607. Deleted. 608. True Issue.�In making up their forecast, the Depot should take into consideration "True Issues" only. "True Issues" or, as they are generally termed, "consumption" comprise that portion of the ordinary stores issues for which ordinary stores stock is maintained. "True Issues", therefore, exclude depot transfers, issues to non-recurring capital works, sales, adjustments and other non-recurring issues and include only issues to home line indentors against regular routine demands and to recoup imprest stock. 609. Deleted. 610. Proforma for Consolidation of Depot Estimate.�Annual estimate sheets received from various depots will be consolidated in COS' office for taking necessary action on the requirement of the Railway as a whole. The consolidation may be done on a suitable proforma which will be referred as "Contract Grouping and Allotment Form." A suggested proforma is shown below:� CONTRACT GROUPING AND ALLOTMENT FORM P.L. No................................................................ Description............................................................ Unit.................................................................... Contract period....................................to....................................Date....................... Depot Name Stocks required for the new contract period Stock available at depot for transfer at the end of the current contract period Balance due from the firm on the date of the depot statements are compiled Net excess i.e. with firm and at the depot at the begining of new contract period Stock to be purchased in the new contract period Allotment Remarks and details of specification of the article Purchase distribution Excess distribution 1 2 3 4 5 6 7 8 Total Grouped by.......................................date.................................. Checked by.......................................date.................................... ............................. for Controller of Stores Date........................ 611. Guidelines on preparing Contract Grouping Forms.�Contract Grouping Form should be prepared separately for each item of stock. The complete information of all the depots for that item should be indicated on one sheet. For the purpose of consolidating the demand as various depots the contract estimate sheet submitted by the depots should be examined critically. Variations between average consumption and estimated consumption as shown by the depots should be reviewed to assess its effect on inventory and modifications if necessary should be made. The position of covered and uncovered dues should be reconciled with the records of the purchase section namely History-cum-Rate Card (S- 637) and the position in the depot's sheets should be updated as required. The list of surplus and overstocks available on the Railway should invariably be consulted. The consolidation may show a net requirement for the railway as a whole which will be required to be procured or it may show net availability of excess 'stocks plus dues' for the railway as a whole, which may be distributed to the depots. 612. Action for Procurement.�The Contract Grouping form will be sent to the Central Indent Section of COS' office for submitting indent to the Central Agency as per their time table, for items which are centrally procured. For other items, procured directly by COS' office, the Grouping Form will be sent to the Purchase Section concerned for taking purchase actions. The Grouping form or an extract of it for part quantity for indents items will also be forwarded to the Purchase Section where an emergency purchase is required in view oflow stock position. The Purchase Section will initiate purchase action and open a case with the contract Grouping Form or its extract. 613. Advise to Depots.�One copy of the Contract Grouping Form along with duplicate copy of depot's annual estimate should be returned to the depot by the Central Indent Section in case of indents and by the Purchase Section in case of purchase, so that the depots are advised of action taken by COS' office. The duplicate copy of the depot's estimate sheet will also indicate changes made by COS' office in the depot's estimate. The Contract Grouping Form will indicate the actions being taken to meet depot's requirement. It will also contain instructions for transfer of excess stocks from one depot to another, if necessary. Normally it will indicate the net quantity which is being procured for the railway as a whole as well as the various depots. In cases where direct purchase action is being taken by COS' office, the copy returned to the depot should showthe case No. of Purchase Section. 614. Deleted. MAXIMUM/MINIMUM PROCUREMENT SYSTEM 615. Submission of Recoupment Sheet by Depots.�As per para S-601, the Controller of Stores will decide what items are to be procured on maxima/minima basis. The procedure of procurement of items on maxima/minima basis will be as detailed in para S-615 to S-617. Recoupment action for such items will be initiated by the Depot as soon as "stocks+dues" of the item comes to "minimum+buffer" level. The Depot will submit a recoupment sheet, in duplicate, to COS' office, for further procurement. The recoupment sheet will essentially include the same details which have been given under para S-603, except that there would be no estimated requirement for interim or contract period. In lieu of the same the Depot will make recoupment for a quantity equal to "maximum". The quantity may, however, vary from maximum to a higher or lower level to cover demand/lead time variations. As the method of procurement suggests, there would be no time table for submission of the recoupment sheets and this will be submitted as and when an occassion arises. 616. Scrutiny of Recoupment Sheets in COS' Office.�The recoupment sheet after receipt in COS' office should be critically examined. Variations between average consumption and estimated consumption should be reviewed and modifications, if necessary., should be made. The position of covered and uncovered dues should be reconciled with the records of the purchase sections, namely History-cum-Rate Card (S-637) and the recoupment sheet submitted by the depot should be updated as required. Before deciding on procurement action, availability of overstock or surplus on the railway should also be checked up. Any quantity, which is required after scrutiny should be sent to the purchase section for initiating procurement action. 617. Advice to the Depot.�The recoupment sheet will be sent to the purchase section for initiating procurement action, if there is a net requirement, otherwise it will be filed. The purchase section will! initiate procurement action and open a case with one copy of recoupment sheet. The other copy of the recoupment sheet will be sent back to the depot for information. This copy will show the position as corrected or modified in COS' office as well as case No. of the purchase section. 618. Review of Current Contracts.�The consolidation of depots requirements (S-611 & 616) may show a net requirement for the Rail way as a whole for which further procurement action should be taken (S621 & S-617). There may, however, be cases that the consolidation shows net availability of excess 'stocks+dues' for the Railway. In such cases no further procurement action is necessary. On the other hand, the existing contracts for supply should be reviewed and outstanding quantities should be modified or cancelled as far as possible, keeping in view the contractual obligations. Re-distribution of physical stocks available with the depots as well as quantities outstanding on contracts should also be done. 619. Deleted. STORES DEPARTMENT MODIFICATION/CANCELLATION OF PURCHASE ORDER Purchase Order No.............................................. Date....................... Modification Advice No........................................ From : Controller of Stores To ..................................... Messers.......................... Dear Sirs, Ref............................................................................... YourRef. No........................................Dated...............19................................. *Please note that the following alterations have been carried out in respect of Estimate Advice/ Acceptance of Tender/Purchase Order mentioned above. All other terms and conditions remain unchanged. *Please note that the Purchase Order mentioned above has been cancelled for the quantity mentioned below. A fresh Purchase will be arranged at your risk and expense if necessary. Item No. of P.O............... From To Quantity................... Rate ........................ Consignee's Name & Code ..................... Delivery Date ...................................... 1. This modification is issued subject to the conditions prescribed on the reverse. 2. This modification is issued subject to the conditions that all taxes and duties if imposed during the extended period of delivery will be borne by the supplier. .................................................. For and on behalf of the President of India (* Strike out which is not applicable) Reasons for Cancellation :� 1. Not required. 2. As you are unable to supply as per your letter quoted. 3. As you have failed to supply. 4. Annual contract quantity completed and the item has been closed. Revised FOR OFFICE USE Quantity Rate No. Unit Code Consignee Delivery Date Copy :�FA&CAO (S) for information. DCOS/.......................................for information, He is requested to furnish supply particulars in detail within 3 days from date of expiry. DOI/ for information and necessary action. CONDITIONS 1. Please note that an amount equal to the liquidated damages for delay in the supply of the stores after the expiry of the contract delivery period shall be recovered from you for the extended period notwithstanding the grant of this extension You may now tender-------------------------------------the stores--------------------- for inspection in balance of stores terms of this letter. Stores, if any, already tendered by you for inspection but not inspected will now be inspected accordingly. 2. The above extension of delivery date will also be subject to the following further conditions:� (a) That no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, Sales Tax or on account of any other tax or duty leviable in respect of stores specified in the purchase order which takes place after....................................shall be admissible on such of the said stores as are delivered after the said date; and (b) That notwithstanding any stipulation in the contract for increase in price on any other ground no such increase which takes place after *....................................shall be admissible on such of the said stores as are delivered after the said date. (c) But, nevertheless, the purchaser shall be entitled to the benefit of any decrease in price on account of reductions in or remission of Customs duty, Excise duty, Sales tax or on account of any other tax or duty or on any other ground as stipulated in the price variation clause which takes place after the expiry of the above mentioned date namely *.................................... 3. Please intimate immediately your acceptance of the extension on the above conditions. Please note that in the event of your declining to accept the extension on the said conditions or your failure after accepting acting upon this extension to deliver The stores --------------------------------------------------within the delivery period as here extended the The outstanding quantity of stores contract shall be cancelled and outstanding quantity of the stores shall be purchased at your risk and cost under the terms of the contract. *Give here the date of expiry of the original delivery period in all extensions. 620. Five copies of this form should be prepared and distributed, one to the Accounts Officer, Stores, one to the Inspecting officer, one to the Main Depot for the item of stores, and one to the Contractor, the fifth being retained as office copy. Any such increase or decrease of quantities should be posted into the Position Cards (S.635). 621. Material Outstanding with Firms.�Cases occur where towards the end of a contract period for any class, the quantity of an item of stores which the railway is under obligation to draw from the firm has not been fully drawn. It may, however, suit the supplying firm to leave the matter as it is, because of their having a more profitable avenue for disposal other than to the railway. In order to deal with the matter in the most advantageous manner to the railway, such obligatory quantities should not be purchased as a matter of course, but timely notices should be issued requesting those firms, who wish the balance of any of the obligatory quantities to be drawn to notify the Controller of Stores, stating the quantity. As the material so ordered does not represent the current consumption, particulars of such obligatory purchases should be noted on all relevant documents. 622. Deleted. 623. The completed Grouping Forms (S. 610) should be sorted into two batches, one batch containing items in stock where there are no demands during the present or the new contract period; this batch should be handed over to the Surplus Stock Section. Similarly when there is an excess stock exceeding the requirements of the current and the new contract periods, the Grouping Forms should be forwarded to the Surplus Stock Section. 624. Tender Schedules.�After the compilation of estimates on the Grouping Form (S 610) the forms for items of a class that are to appear in one schedule for the purpose of advertising for tenders should be made into separate batches. Those items which are serially catalogued in the Price List of class to one specification, and which differ only in dimensions may be grouped in one tender schedule. This has the advantage of making contracts more attractive to supplying firms, while at the same time reducing the number of contracts. Examples of such items are the various sizes of crucibles, twist drills, files, screws, fire-bricks, brush ware &c. The average rate, which is always available from the Price List should then be applied to each batch of forms (S.610) to find the total value of the tender schedule and any batch which aggregates to less than one thousand rupees for the annual requirements should be set apart and endorsed accordingly. For the remaining batches of grouped items which aggregate to one thousand rupees or over, copies of the Tender Schedules for each group should be prepared and arrangements made for the letting of contracts or for the preparation and issue of excess stock distribution statements items by item to the Main Depot. 625. Items Procured by a Central Agency.�For items procured by central agencies (DGS & D, Railway Board, etc.) indents in the prescribed form should be submitted as per the time-table. The indents will show distribution of quantity to the various consignees. Suitable endorsement instructing the central agency for forwarding copies of the contracts to the various consignees should also be given. 626. Deleted. 627. Forcing (if Surplus/Overstock.�While finalising further procurement action in COS' office in terms of para 611 & 616, the list of surplus and overstock items available on the railway should be consulted. The list of such items received from other Railways should be also be taken into account. Wherever surplus or overstock exists, the same should be distributed to meet the requirements of the depots. Efforts should a 1 so be made to make use of surplus and overstocks as substitutes for requirement of other items also. 628. Shop Manufactured Items.�Shop manufactured items should be indicated on Contract Estimates (S. 603). These items should be grouped on the Grouping Forms (S. 610) in the usual manner, and a list of such items, when summarized, should be forwarded to the Chief Mechanical Engineer in order that he may have a forecast of the annual requirements. The manufacture of such articles is not to be put in hand, however, until the Depot Officers place Stock Requisitions on Workshops (S. 1437). These requisitions will be placed when the stocks teach the indicated minimum quantity. 629. Acceptance of Tenders.�The successful tenderers, for contracts should be notified on the following form of their tenders having been accepted. Form No. S. 629 Acceptance of Tenders Ref. No. To Messers.......................................... Station................... Date...................... Dear Sirs, Your offer to supply on...........................*rate contract the stores specified below has this day been accepted to the extent of the quantity and on the terms as to delivery specified herein, subject to the Indian Railway standard Conditions of Contract No......................and the instructions for the guidance of Contractors issued by the..................Railway. The stores are to be delivered to.................................free of incidental charges, on Purchase Orders issued by this department. This document should not be treated as an order to deliver stores. Reqn. or Contract Estimate statement and Item No. P.L. No. Tender No. Description size & quality of articles ordered Total qty. likely to be required Rate in words & figures Unit for rate Delivery as & when reqd. between On office copy only. Name of Depot............. Purchase distribution...... Excess stock distribution. *Here fill in nature of rate contract such as 'Flat,' 'Running,' & c. .................................................... Controller of Stores (or when signed by any officer authorised for the purpose the actual designation of the officer to be shown) for and on behalf of the President of India. 630. Three copies of the above form will be prepared and distributed as follows : 1 st foil.........................................................Office copy 2nd foil...................................................will be sent to the Inspecting Officer. 3rd foil..........................................................will be sent to the firm. 631. Deleted. 632. The Main and Subsidiary Depot.�The Main depot is responsible for arranging required stock from the Controller of Stores and distributing the same to the Subsidiary Depots. In the procedure outlined in this chapter 'Depot' means a main depot only, who will submit annual estimate sheet/recoupment sheet to the COS' office. The subsidiary depots only keep a watch on their stocks and as soon as the stock of an item has depleted to the level of the minimum quantity, demands are promptly placed on the main depot. 633. Deleted. 634. Deleted. 635. History-cum-Rate Card.�An index card should be maintained in COS'office for each stock item. This card should be kept by the purchase section dealing with the item. This card gives a complete history of past procurement and also gives the position of all the current dues, covered as well as uncovered. The position card would normally contain the following information. It can logically be divided into two portions.� (a) Details of the stock item and past consumption & (b) Details of dues and past purchases. (a) Details of the Stock Item and its Past Consumption.� 1. PL Number 2. Brief Description 3. Unit 4. Specification number 5. Drawing number 6. Name of central agency�in case of centrally procured items only. 7. Date of submission of -do- indents. 8. Estimated annual requirement 9. Maximum/Minimum 10. Annual consumption year wise and depot wise consumption should be recorded. (b) Details of Dues and Past Purchases.� 1. Depot's demand No./Indentor's Requisition No. 2. Quantity 3. Purchase Case No. 4. PO No. or A/T No. and date 5. Firm's name 6. Quantity 7. Rate 8. Unit 9. Delivery period 10. Details of despatches & depot's receipts 11. Remarks. 636. Guidelines for filling-up 'History-cum-Rate Card'.�It will be observed that the card acts as a ready reference for the Controller of Stores as regards the particulars of rates and types of contracts placed. For any desired period the consumption of the item is also available depotwise as well as for the entire Railway. The position of the current dues is available including balance quantity still to be supplied by the firms. Care should be taken in filling up this card accurately and keeping it up-to-date. The procurement is normally initiated on depot's demand, namely annual estimate sheet or recoupment sheet. However, in exceptional cases a requisition from the indentor may also be processed for direct procurement. The purchase case No. is the basic reference point. While advising the depot of the action taken on their demand (para S-613 & S-617), the case No. should invariably be communicated, so that the depots can find out current position of their dues from COS' office without any difficulty. Despatch advises received from the firms should be promptly recorded. R.O. No. of the Receipt Note issued subsequently by the depot after receipt of materials should also be recorded. The actual consumption of the depots from year to year should be carefully recorded in the card. This information is available from annual estimate sheet/recoupment sheet submitted by the depot. 637. Deleted. 638. Deleted. 639. Deleted. 640. When there is more than one current contract for an item of stores on account of railways' requirements having been divided between two or more firms, a watch should be exercised to see that a disproportionate quantity is not drawn inadvertently from any of the firms. 641. Deleted. PERMANENT WAY MATERIALS 642. Arrangements for purchase of permanent-way materials.�Unlike other kinds of stores, the estimate of permanent way materials to be purchased or manufactured by the railway workshops in the ensuing year will be made by the Chief Engineer as laid down in paragraph 643 to 645. 643. A forecast, of all permanent-way materials required for the ensuing financial year should be made. On this forecast depends the guarantee of a sufficiency of stocks to meet the likely demands. The forecast is best made by extracting the average annual consumption for the last three years, separately for open line, special works, ordinary maintenance, &c, from the daily reports of materials issued (S. 1333) striking the average for one year and correcting it in the light of any special circumstances likely to affect the estimate for the ensuing year. To this corrected average should be added the figures for the renewal and construction programme for the ensuing year and a percentage allowance for a small reserve. This total should then be compared with the estimated available stocks in the permanent way depots on the 1st of April of the ensuing year and the difference would yield a fairly close estimate of the material to be purchased (or manufactured). Other arrangements for the advertising or calls for tenders and the letting of contracts by the Administration or of placing of indents on the Railway Board should be made on the same lines as for other stores. Agreements for the supply of permanent way fittings should contain a clause to the effect that the railways will have the option to vary the total quantity to the extent of 10 per cent. 644. Items procured through Railway Board.�Indents for centrally procured items will be submitted to the Railway Board as per the time-table fixed by the Board. The following items are being procured centrally: 1. Rails 2. Sleepers�All types namely steel, cast iron, concrete and wooden. 3. Fish-plates 4. Points and crossings. 5. Track machineries and Plants 6. Development Items The list of development items as well as other items for which indents are to be submitted to the Railway Board is decided from time to time by the Railway Board and Railways are advised accordingly. 645. Items procured by the Railway.�All items other than the centrally procured items will be purchased by the Zonal Railway directly, following the normal procedure for procurement of stores. 646. Deleted. CHAPTER VII PURCHASE PROCEDURE : DIRECT PURCHASES BY THE ADMINISTRATION 701. Agency for Supply.�The Agency of the Stores Department will be used in ordering the supply of all Stores required for the use of the railway, whether for stock purposes or for immediate consumption on works. The Controller of Stores will be the only officer through whom purchases may be made and he will have complete authority to insist upon executive officers drawing stores from stocks, until they are used up before indenting for new stores. He will scrutinize every indent and decline to purchase, where he considers that the existing stock is sufficient and suitable and his orders shall be final unless he is overruled by the General Manager. The General Manager may, however, delegate the powers of the local purchase to the Divisional Railway Manager subject to the provisions as laid down in Para 711-A-S. 702. Exceptions.�As an exception to the above rule, the following articles which are supplied in large quantities may, subject to approval by competent authorities, be ordered by the Departmental Officer concerned. Class of Stores Officer empowered to arrange supplies I. Under Railway Board's Contracts: � (i) Rails and Fish-plates-, (ii) Sleepers all kinds: �Cast Iron, Pressed Steel, Prestressed Cement Concrete and Wooden and Steel Turn Out Sleepers. ) Chief Engineer (iii) Points & Crossings (including Cast Manganese Steel Crossings). (iv) Specified Track Laying/Renewal Machines and Track Maintenance Machines. Chief Engineer II. Through Chief Mining Adviser, Railway Board :� (i) DELETE(Authority: Railway Board�s letter No. 98/RS(G)/779/10 dated 23.07.02--acs no.13 page no.95 (ii) DELETEDD(Authority: Railway Board�s letter No. 98/RS(G)/779/10(CS) dated 30.05.2001 --acs no.12 page no.95 The General Manager of a Railway may sanction additions to the above list to suit local requirements of his administration. 703. Agency for Purchases.�Purchases of Materials for Railway are arranged either :� (i) By the Railway Board or directly by the Railway Administration, or (ii) Through the agency of other Government Departments, viz.:� (a) The Directorate General of Supplies and Disposals �in cases of articles mentioned in Para 801-S and referred to in Appendix VI to this Code, amended from time to time. (b) The Controller of Stationery and Printing�for Stationery and Printing Stores. (c) Government Medical Stores Depots�for Medical Stores. Note.�(a) Railway administration are empowered to make direct purchases of medical stores as indicated below :� (i) Stores not stocked by the Government Medical Depots�full powers of direct purchase. (ii) Stores stocked by the Government Medical Stores Depots�Items of stores, indented on the Medical Stores Depots in the prescribed manner, which they are not able to supply within a month and for which non-availability certificates have been issued by the supplying depot may be purchased directly from the open market. (iii) In emergencies, whether stores are or not stocked by the Medical Stores Depot�Chief Medical Officers of Railway Administrations are authorised to make direct purchase of medical stores upto Rs. 500/- in each case subject to the restriction that this power is not re-delegated to any lower authority. (b) The power under item (i) and (ii) above may be exercised by the Chief Medical Officer or the Controller of Stores accordingly as the procurement of Medical Stores is entrusted to the former or the latter by the Railway Administration. 704. Purchases by the Railway Board.�The Railway Board have reserved to themselves the right to call for tenders and let Contracts for the Supply of the following articles :� (i) Locomotives, carriages, under frames, wagons and certain nominated spares/ components therefore. (ii) Wheels, tyres and Axles, (iii) Coal, including steam coal, small and soft coke. The Railway Board also enter into long term Contracts, from time to time for the Supply of the following Articles to Railways:� (i) Rails, fish-plates and points & crossings. (ii) Sleepers all kinds�cast iron, pressed steel, prestressed cement concrete and wooden� including pig iron for conversion into sleepers and steel turn out sleepers. (iii) Specified track laying/renewal machines and Track Maintenance Machines, (iv) Specified items of stores/equipment for Railway Electrification and Signalling. 705. Purchases arranged by the Administration.�The administration may purchase all articles other than those the purchase of which is arranged by the Railway Board or is obligatory through the Directorate General of supplies and Disposals and/or other Government Departments as prescribed by Rules issued by the Railway Board from time to time. 706. Direct Purchase of Directorate General of Supplies and Disposal items.� Except in respect of items of stores for which the Directorate General of Supplies & Disposals has entered in to Rate or Running contracts, the Controllers of Stores may not use the agency of the Directorate General of Supplies & Disposals for any purchase up to Rs. 1 lakh and under in each case. In emergencies where non-acquisition of the article concerned is likely to hold up work, purchases limited to the quantity required to tide over the emergencies may be made, the controllers of Stores exercising these powers upto the limit of Rs. 2 crores for each item. In respect of purchases exceeding Rs. 2 crores but not exceeding Rs. 50 Crore, sanction of the General Manager should be obtained. The Controller of Stores will also decide when for what quantity and in what manner such emergency purchases shall be made. Note. -1. The limit of Rs. 1 lakh mentioned above for direct purchase applies to each case or to each tender containing similar or inter-connected articles purchased at any one time and individual demands should not be intentionally split up to come within the limit mentioned above viz. Rs. 1 lakh. 2. All purchases made by the indentors direct, in terms of the above, the value of which exceeds Rs.2,000/- should be notified in the Indian Trade journal with full particulars, name of the stores, date of purchase, quantity, price paid, name of suppliers and whether the stores is imported or indigenous and in the latter case whether cottage and small scale industry product This may be done in the form used by the Directorate General of Supplies & Disposals. Further, total value of all direct purchases upto Rs. 2,000/- which are not published in the Indian Trade Journal, should be reported to the Directorate General of Supplies and Disposals quarterly in regard to purchases made during the preceding quarter beginning with quarter ending 30th September, 1958. The total value should exclude purchases of special items like foodgrains, coal etc. which am not normally purchased through the Central Purchase Organisation. (Authority Board's letter No. 2008/RS(G)/779/9 dated O6 -02-2009)�acs no. 28 page no. 97 707. In respect of items of stores which are normally purchased through the Directorate General of Supplies and Disposals and which are covered by Rate or Running Contracts of that Department, the Controller of Stores may, at his discretion, make direct purchases upto limit of Rs. 1 Lakh in each case and not exceeding Rs. 5 Lakh in the aggregate in each case in any one year if the stores are urgently required or can be more conveniently obtained locally or from a nearer station. In emergencies, the same powers as shown in para 706-S may be exercised. (Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009).acs no. 29 page no. 97 708. Modes of Direct Purchases.�The Controller of Stores will arrange purchases on behalf of the Administration either through :� (a) Advertised (Open) Tender (special or annual) ; (b) Limited Tender; or (c) Single Tender. As may be suitable for the particular purchase, in accordance with the instructions contained in Chapters III and IV on 'Purchase Policy Rules' and 'Contracts'. 709. Bulletin and Daily Tenders.�He may also obtain supplies of stores costing less than Rs. 10 Lakh (other than those obtained on annual tender or through the Directorate General of Supplies and Disposals or proprietary articles or stores of special character such as loco and carriage and wagon duplicates), through the medium of Weekly Bulletin or daily tender which are a modified form of the "Limited Tender". These tenders need be sent only to those firms, which are on the approved list for such tenders. In case of daily tenders separate calls for different classes of stores should be issued when necessary. Firms may be allowed ten to fifteen days from the date of issue of the call for tenders in which to submit quotations and provided rates are reasonable, those quoting early delivery may be given preference. (Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009)acs no. 30 page no. 97 710. Deleted 711. Local Purchases of Materials of Small Value.�The Controller of Stores may also make local purchases of items of small value, both stock and non-stock, upto Rs. 1 Lakh in each case, subject to the condition that in the case of stock items, the purchases are made only where: - (i) The normal annual recoupment quantity does not exceed Rs. 1 Lakh in value; or (ii) The stock of the item is precariously low and the item is urgently required; and that the quantity is not deliberately reduced with a view to bringing the purchase within the scope of this provision. He will make no purchase without satisfying himself that the price paid is reasonable. For items costing upto Rs. 10,000/-, he may obtain single quotations, but for items costing over Rs. 10,000/-he should obtain quotations from more than one firm and maintain a proper record of such quotations. The current rates quoted should invariably be compared with the last purchase rates and any large differences checked up before making local purchases. The powers referred to above or other power of local purchases of stores delegated to the Controller of Stores may be redelegated to the Depot Officers, in consultation with the Financial Adviser & Chief Accounts Officer to the extent considered necessary in each case. Such purchases may be paid for in cash from imprest cash. Note. -1. No non-stock article for which a standard patterns exists, should be purchased, if it could be manufactured by the Railway. (Authority Board's letter No. 2008/RS(G)/779/9 dated 06 -02-2009)acs no.31 page no.98 711-A. Local Purchase of Stores by DRM's, CE's(C), CSTEs(C), CEEs(C) of Railways, R.E., M.T.P. (R)s and other Officers not attached to the Stores Department.�The DRMs, CEs(C), CSTEs (C), CEEs (C) of Railways RE and MTP(R)s may, however, subject to the provision of para 701-S make local purchase of items of stores other than those covered by rate/running contracts entered into by the DGS & D and Stationery Stores, upto the limit mentioned below :� (i) Purchase of non-stock items. - Upto Rs. 10,000/- per item but not exceeding Rs. 1 Lakh in the aggregate per month. (Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)�acs no. 32 pageno. 98 (ii) Purchase of Stock items.�In the case of emergency upto Rs. 5,000/- per item but net exceeding Rs. 50,000/- in aggregate per month in consultation with the conamed Accounts Officer. The above powers may be redelegated by the Divisional Railway Managers to Officers under them to the extent considered necessary subject to the overall limit of powers prescribed for the Divisional Railway Managers. Note.�Provision regarding prior consultation with Associate Finance may be waived in cases of purchases by the Assistant Engineers in emergencies where they are head-quartered at stations at which the advice of associate finance is not available. In regard to the local purchases of rate/running contract items of stores, powers to the extent considered essential may be delegated to the Divisional Railway Managers within the overall annual aggregate limit for each item for the entire Railway. (iii) The following officers may make local purchase of stores (other than DGS & D's rate/running contract items and stationery stores) to the extent and in the manner indicated against each :� (a) CMEs, Dy. CMEs,Dy.CEs, Dy. CEs(C), Dy. CSTEs, Dy. CSTEs (C), Dy. CEEs and Dy. CEEs (C) holding independent charge of workshops. (Authority: Railway Board�s letter No. 79/FS(I)/PW/7/4 dated 25.3.92) ---acs no.1 -( page no.99) (i) Purchase of non-stock items.�Upto Rs. 2500/- per item but not exceeding Rs. 25,000/- in aggregate per month in consultation with the concerned Accounts Officer. The above powers may be redelegated by these officers to Works Managers under them to the extent considered necessary. (b) Works Managers holding independent charge of workshops : (i) Purchase of non-stock items.�Upto Rs. 1,000/- per item but not exceeding Rs. 10,000/-" per month in aggregate . Purchase of stock items.�In emergency, upto Rs. 100/- although the figure of Rs. 100/-is as per ACS I95-S it appears there is typographical error, and it should be Rs. 1,000/- per item but not exceeding Rs. 10,000/ in aggregate per month in consultation with the concerned Accounts Officer. (c) XEN, DSTE, DEE, DME etc. who do not work directly under the control of the Divisional Railway Managers:� (i) Purchase of non-stock items.�Up to Rs. 1,000/- per item but not exceeding Rs. 10,000/-per month in the aggregate. (ii) Purchase of stock items.�In case of emergency up to Rs. 1,000/-per item but not exceeding Rs. 10,000/- per month in the aggregate, in consultation with the concerned Accounts Officers. The above officers may redelegate these powers to the Assistant Officers under them, if any, to the extent considered necessary in consultation with the concerned Accounts Officers. Note.�1. For items costing more than Rs. 500/- quotations from more than one firm shall be obtained. 2. No non-stock article for which a standard pattern exists, should be purchased, if it could be manufactured by the Railway. 3. Local purchases should invariably be done through Super Bazzars to the extent stocks available there. In such cases a single quotation up to Rs. 2,000/- per item can be accepted. 711B. Opening of Current Accounts against Cash Imprest by Stores Officers.�Stores Officer's at Major Stores Depots holding cash imprest for emergent purchases may open and operate "Current Accounts" with the Departmental Bankers or with other Nationalised Banks at places where Departmental Bankers do not have their paying branches, to deposit the unspent balances of cash including recoupments and to make disbursements therefrom for local purchases through cheques, subject to the following conditions :� (a) Current Accounts should be opened only in cases where the imprest amount is more than Rs. 10,000/- each. (b) Current Accounts should be opened against the official designation of the imprest holders and not in their personal names. (c) The amounts of imprest should be reviewed half-yearly so that these are kept at the minimum in all cases. Atleast one recoupment of expenditure in a month should be made compulsory and with this end in view, the amount of imprest should be fixed on the basis of 50 per cent of the average monthly expenditure on emergent purchases in each case. (d) Recoupments should be made through Crossed cheques issued by the F. A. & C. A.O. in favour of the imprest holder by his official designation only and not in favour of his personal name. Such cheques shall be deposited in the current accounts. (e) It should be ensured that the imprest amount is utilised only for making payments for emergent purchases permissible under extant rules and not for making normal purchases which should be made through submission of Bills in the usual manner. (f) AH deposits into and withdrawals from the Current Accounts should pass through a subsidiary book and Imprest Accounts should be rendered with reference to the transaction recorded in that book. 712. Accountal of Local Purchases.�Purchase lists (S. 712) in quadruplicate should be prepared in the form shown below by the Depot Officer for Stores locally purchased. After acceptance of material, one copy should be retained as office copy, one sent to the Accounts Officer, Stores, alongwith cash vouchers for recoupment of imprest, one to the Controller of Stores and the last (after posting in the numerical ledgers) to the Stores Accounts Officer for posting the priced ledgers. Care should be taken to see that only one class of stores is included in each list. The Controller of Stores should check the lists received by him to see that only the class of items mentioned in paragraph 711 are purchased locally; he should also examine from the frequency and quantities of purchases of any item whether it is not advantageous to enter into annual contracts for such items. Form No. S. 712 PURCHASE LISTS OF LOCAL PURCHASES Depot.........................................Class............................ Date of Purchases.................................... Firm's Name Voucher P.L. No Quantity Unit Rate Value Posted in Depot Ledger on Closing Balance No. Date Rs. P. Total........................................................................................................... Rupees (in words).......................................................................................... Certified that the above purchases have been made in the terms of the provisions of paragraph 711 of the Indian Railway Code for the Stores Department and the Stores have been put into stock. .......................... Depot Officer Date.............................. PURCHASE PROCEDURE 713. Essential Points.�The procedure adopted for the ordering, inspection and receipt of stores should provide inter alia for :� (i) The Accounts Officer, Stores being furnished directly by the officer placing a Purchase Order with a signed copy of the Purchase Order sent to the supplier. (ii) The Officer of the Stores Department receiving the stores supplied, furnishing to the Accounts Officer direct a Receipt Note, i.e. a duly receipted copy of the suppliers invoice after it has been posted in the numerical ledgers. Note.�Where inspection of supplies of stores is not carried out in the depots in which the stores are stocked, and/or where the accounting work is decentralized, as extra copy of the Receipt Note is called for in order to enable the Inspecting Officer accounting the stores to notify simultaneously the Depots concerned and the Accounts Office. 714. Purchase Orders.�Purchase Orders, i.e., orders on the firms for supply of stored, may be placed either by the Controller of Stores or by the Depot Officer of the Main Depot, a form similar to the one shown below being used for the purpose. Form No. S. 714 STORES DEPARTMENT�PURCHASE ORDER (Stock Items) ........................Railway Card Code 1-2 P.O. No. 3-16 Sl. No. 17-18 Date 19-24 Supplier's Code 25-29 Supplier's State 30-31 Tender No. From : Tender Type 32 Opened on 33- 38 To With reference to your Quotation Number......................................................... dated..............................please deliver to the consignee mentioned below, the under mentioned articles free of incidental charges subject to Indian Railways Standard Conditions of Contract, latest edition, and General Condition of Contract for the Stores Department of this Railway and the addendum thereto applicable to this contract:� DESCRIPTION QUANTITY (Figures) (Words) RATE (Figures) (Words) RATE UNIT TERMS OF DELIVERY F.O.R. / FREE AT: CON CODE 39-43 WARD 44-47 STOCK NS48 DELIVERY DATE 49-54 OTHER TERMS AND CONDITIONS : 1. To be Delivered/Despatched to.. 2. Delivery must be completed by. 3. Booking Station................... 4. Bill Passing Officer................ 5. BUI Paying Officer................ Please acknowledge Receipt. INDENTOR DEMAND No....................... Date............................ For & on behalf of the President of India. Item PL No. 55-62 Cat. 63 Quantity in NL Unit 64-72 (3 Decimal) BDL No. 73-74 SEQ 79 Rate per NL Unit 19-25 (in Paise) NL Unit Code 26-27 Req. Reg. Date 28-33 Allocation 34-41 Total Value (Paise) 42-50 F. Ex. (Paise) 51-59 F. Ex. Code 60 Time Pref. 61 Risk Purchase 62 No. of Consignees 63 No. of Items 64-65 No. of Del. 66 LT/SL 67-68 Nature of IDUS 69 BDL No. 73-74 SEQ 79 2 Copy to.� 1. D.C.O.S./A.C.O.S. 3. F.A. & CAO (SAB) 5. 2. E.D.P. (Stores) 4. F.A. & CAO (C) 6. PAYMENT TERMS ........................% payment will be made on proof of despatch i.e. clear R.R./Receipted Delivery Challan after Inspection and balance...........................% on proof of acceptance of supply by the consignee, within..................days. As..............................% payment is to be made on proof of despatch, Receipted Challan ..................% bill alongwith the despatch documents including Inspection Certificate should be sent to Accounts with a despatch advice to the consignee. Please note that while claiming...............% payment you are to ensure that the following certificate is to be furnished by you, failing which payment will not be made by the Paying Authority. "I/We have personally examined and verified and do hereby certify that goods in respect of which payment is being claimed have been actually despatched under R/RNo........................ dated.....................and further that these goods are the exact materials indicated in Challan No..............................dated.....................and covered by Inspection Certificate No............dated.......................... I/We held myself/ourselves personally responsible for correctness of this statement". Address. ............................ Tender er's signature & ........................... Date. .................... STORES DEPARTMENT�PURCHASE ORDER ANNEXURE Card Code 1-2 P.O. No. 3-16 Sl. No. 17-18 Date 19-24 Supplier Code 25-29 Suppliers State 30-31 Tender Type 32 Opened on 33-38 Con. Code 39-43 Ward 44-47 Stock NS 48 Delivery Date 49-54 Description Quantity Rate Unit Consignee Name (in words) Item PL No. 55-62 Cat. 63 Quantity in NL Unit (3 Decimals) 64-72 BDL No. 73-74 SEQ 79 Rate Per NL Unit (in paise) 19-25 Unit Code 26-27 Req. Reg. Date 28-33 Allocation 34-41 Total Value (Paise) 42-50 F. Ex. Rs. (Paise) 51-59 F.Ex. Code 60 Time Pref. 61 Risk Purchase 62 No. of Consignees 63 No. of Items 64-65 No. of Del. 66 LT/SL 67-68 Nature of IDUS 69 BDL NO. 73-74 SEQ 79 For & on behalf of the President of India 715. In the case of direct purchases by the Railway Administration, six copies of the purchase order should be prepared for distribution to all concerned including those mentioned below. One copy will be retained as office copy and will form the basis of the correspondence file of the Controller of Stores. One copy will be sent to the firm. One copy alongwith Drgs., relevent specifications etc. should be sent to the Inspecting Officer to whom the supply is consigned to pass material on receipt. One copy each will be sent to the depots receiving the supply and where the goods are to be finally stored. One copy will be sent to the Accounts Officer, Stores, for passing the supplier's bills. One copy to Electronic Data Processing Centre. Where stores are to be inspected at suppliers premises prior to despatch, a copy of the purchase order shall also be sew to the nominated Inspection Agency. Where the Purchase Order is placed by the Depot, the Depot Officer should retain the copy intended for his record, send one copy to the Controller of Stores and distribute remaining copies in the manner indicated above. 716. In the case of supplies through the Directorate General of Supplies and Disposals, additional number of copies of the Purchase Order-should be prepared for sending one copy to the Pay and Accounts Officers, Directorate General of Supplies and Disposals Department and two copies to the Directorate General of Supplies and Disposals, Inspection Circle. 717. If inspection of the materials is arranged at the point of manufacture abroad, a copy of the purchase order, together with copies of relevant specifications and drawings shall also be sent to the Inspection Agency nominated for this purpose. 718. The Supply Form.�The details of the procedure employed for accounting for purchases of stores differ to some extent, according as :� (a) the inspection of stores is carried out in the depot in which the stores are intended to be stocked, or (b) is centralized and is carried out in a spot other than the depot in which the stores are to be stocked. 718-A. Supplier's Challan.�Supplying firms will submit in duplicate a challan along with the materials supplied by them. A copy of the challan should also be forwarded to the Purchase Officer. After receipt of the materials, one copy of the challan duly acknowledged for quantity only (and not quality) will be returned to the supplier with a remark that a proper receipt will be granted in due course for such quantities as may be found acceptable. 719. Combined Receipt and Issue Note.�On correct receipt of material, the receiving officer will prepare the receipt and issue note in the Form 719-S. On the Railways where inspection of stores is not centralised, the form shall be prepared in six parts which shall be distributed in the manner indicated in Para 723. On the Railways where inspection of stores is centralised, the form shall be prepared in seven parts which shall be distributed in the manner indicated in Para 729. RECEIPT AND ISSUE NOTE Receipt Note Inspecting Depot CD Code P.O./A.T NO. & Date Stocking Depot Ward VR No. Date Allocation Name of Suppliers & Address Supp. Code Receipt Note No. Date P.L. No. Cat. Unit Description Rate Accepted Qty. in Figure Quantity in Word Value Rs. P. Qty. Challaned Coded P.O./A.T. NO. Inspection Note No. & Date Terms of Delivery Freight to Pay/ Paid Date of Receipt Weighment Regd. No. & Date Rate in Figure Rs. P. Unit of Rate Rate in Words R.R. No. Date Wagon No./Name of the Steamer Due Date Delivery Date of Actual Supply Orders of C.O.S. Penalty Advice To be Filled when Quantity Invoiced and Quantity Accepted are not same Qty. Invoiced Qty. Received Qty. Rejected Qty. Accepted Remarks Credit Note. No. Date Wagon No. Dispatched To. Received the accepted Quantity correctly and the Rate Certified. ............... .......................... .......................................... .................................... Suppli er Despatching Official Receiving Official of Stocking Depot Depot Inspecting Officer Reverse of the Form (719-S) Letterpress on reverse of the form is different on each part except Part II (Supplier's copy) which has no letter press at all. Reverse of Part I The stores have been despatched to............................... under Railway Receipt No..........................................dated.......... with reference to his recoupment memo No./Requisition No.......... ................. dated............................... Dated........................ .............................................. Inspecting & Receiving Officer Reverse of Part-III The stores have been despatched............................................................. under Railway Receipt No................................................dated............. with reference to his recoupment Memo No/Requisition No............................... dated.............................. For use in Accounts Office 1. Calculated by................................................................................................................................................. 2. Checked by...............................................................on.................................................................................... 3. Compared with Purchase Order by....................................on................................................................................. 4. Posted in purchase register by..........................................on................................................................................ 5. Bill passed by............................................................on.................................................................................... ......................................................... Signature of the Accounts Clerk responsible. Reverse of Parts IV, V, VI & VII The stores have been despatched to.................................................................................................................. under Railway Receipt No.................................dated..............................with reference to his recoupment Memo No./Requisition No..............................dated............... Certified that the above stores have been received from the.....................Controller of Stores, Inspection & Receipt and these have been duly posted in the numerical ledger (top card) for Price List No............................ Description of Stores Shortage or damage Remarks .......................... Depot Officer The proposed letter press on reverse of Form 719-S is slightly different from the provisions contained in Paras 727 arid 728. The changes made are indicated below :� (1) The letter press on reverse of Parts I, IV, V and VI slightly modified to incorporate RR No. instead of Credit Note No. (2) Letter press on reverse of Part III modified to :� (i) delete the portion relating to delayed supplies as the Receipt Notes arc issued only after delivery period is extended and letter of Extension invariably indicates the penalty, if any, to be levied. (ii) Contents of Para 728 have been merged. 720. Deleted. 721. Part Supplies.�Particulars of part supplies, if accepted, should be clearly noted in the Purchase Order Form (S. 714) so that a check can be exercised against excess or short supplies. 722. Deleted. 723. On Railways where inspection of stores is not centralized, the five parts of Form 719-S will be distributed by the Inspection and Receipt Section as follows :� Part I will be retained in the Receipt and Inspection Section as Office copy. Part II will be sent to the suppliers as an acknowledgement for the correct receipt of material and for submission to the Account Office with the bill for the value of the material supplied. The Accounts office will not settle a bill unless supported by this form. Part III will be sent direct to the Accounts Office where it will be used for posting the priced ledgers and the Purchase registers and finally for comparing it with Part II (received in support of the Supplier's bill) to guard against possible unauthorised corrections of rates or quantities in Part II. Part IV (together with Part V) will be handed over to the Ward stocking the material, after obtaining acknowledgement for the material on Part I. The depot, after posting numerical ledger, will send it to the Accounts Office. In the Accounts Office, it will be compared with the corresponding Part III and endorsed with a remark to that effect. This check ensures that the quantities as extracted into stores Priced Ledgers are the same as those received in the stocking Depots and accounted for by them in their numerical ledgers. Part V will be the office record of the stocking ward. Part VI will be sent to the Purchase Officer concerned in the Controller of Stores Office. Note.� Wherever the Stores Accounts Office has been decentralised and a local unit of the office has been attached to Stores Depots the above procedure should be slightly modified as follows. Instead of Part IV being sent direct to the depot stocking the material, it should be sent to the Central Stores Accounts Office (at the headquarters of the railway) along with Part HI. The Central Stores Accounts Office should sent it to the Local Stores Accounts Office concerned, in support of the "Daily Summary of Credits to Purchases Account (S. 2808)". The depot should post its numerical ledgers from Part V (instead of form Part IV, and pass it on to the Local Accounts Office, instead of retaining it. The Local Stores Accounts Office should use Part V for posting priced ledgers, compare it with Part IV received from the Central Stores Accounts Office, endorse both parts with the remark that they have been compared and return Part V finally to the Depot Office for record. Remarks.�Minimum five parts of the receipt and issue note (Form 719-S) are required as explained above and only three copies as mentioned in Paras 719 and 723 will not suffice since as per the scheme contained in Para 723 neither the receipt and inspection section nor the stocking ward will have a copy, which is necessary for their record. Further it is not necessary to sent a copy of Receipt Note to Controller of Stores as the supply position will be available on the computer after the voucher is posted. 724. Deleted. 725. Deleted. 726. Deleted. 727. Deleted. 728. Deleted. 729. Distribution.�On Railway's where receipt and inspection of stores is centralised, the receipt and issue note (Form719-S) will be prepared in seven parts. The procedure prescribed in Para 723-S will apply mutatis mutandis to distribution of the first six parts. Part VI will be sent to the stocking depot along with Parts IV &V and will be returned by the Stocking Depot after checking the correct receipt of material to the Officer-in-charge of the Inspection & Receipt Depot, in acknowledgement of the stores received. Remarks.�Same as Para 723-S. Further routing of Part III through Controller of Stores is not considered necessary as the question of penalty for delayed supplies must be decided in terms of extension of delivery period granted by the Purchase Officer, without which delayed supplies are not to be accepted. 730. Orders for Direct Despatch.�All non-stock items in general, and the following items in particular should generally be ordered for direct despatch to indenting officers :� (1) Spare parts of the following non-stock items when obtained from the agents for the plant or passed by the Directorate-General of Supplies and Disposals. Oil Engines. Air-Compressors Pneumatic plant. Experimental steam and oil coaches. Electrical plant. Flood lights. Engineering plant. Scientific instruments. (2) Stock items obtained on urgent requisitions for special work. (3) Wagon-load lots of metals with a test certificate. Wagon load oils and paints passed by Directorate-General of Supplies and Disposals. Wagon load, Mangalore Tiles. Wagon load, C.I. pipes passed by Directorate-General of Supplies and Disposals. Wagon load, Pig Iron. Wagon load, Tar, Ashphlat, Road surfacing material. 731. Purchase of non-stock items.�Supply of any-Non-stock item that is required by an indentor should be arranged for in the following manner. 732. Submission of Requisitions.�Requisitions should be submitted to the depots assigned for that purpose by the Controller of Stores. The requisition should be made out in duplicate in Form S. 1302, only one item being entered on each Form. 733. Scrutiny of Requisitions in Depot.�On receipt of a requisition for a non-stock item in a depot, it should be registered and forwarded to the ward-keeper, incharge of the ward stocking the class of stores mentioned in the requisition to ascertain if there is, any similar suitable stock item to offer as a substitute. Should there be any item considered suitable to offer, a reference should be made to the indentor. Subsequently, if it be found necessary to make a special purchase, the requisition should be endorsed to this effect and forwarded to the Controller of Stores, the date of despatch of the requisition being duly entered in the depot's Requisition Register (Form S. 1307). All such requisitions should be forwarded to the Controller of Stores within a reasonable period of receipt, unless delayed owing the reference having to be made to the Indentor. 734. Registration of Requisitions.�Requisitions, which are received from Store depots, or direct from indentors, should be registered in the Controller of Stores Office in a Requisition Register (Form S. 1307) by their original dates and not by the dates of receipt in the Controller of Stores' Office. 735. Directorate-General of Supplies and Disposals Items.�Requisitions of all items that have to be purchased by the Directorate-General of Supplies and Disposals should be separated and necessary Indents prepared in duplicate, one copy being retained as office record, and the other copy forwarded to the Directorate General of Supplies and Disposals. 736. Items Purchased by the Railway.�The same procedure of calling for tenders, etc. as for stock items should be followed. 737. " Forcing" of Stock Items.�The Controller of Stores should refer back to the Indentor if it is considered that a stock item may be used in lieu of a special item. If there are repeated demands for a particular non-stock item, the Controller of Stores should consider whether the item shall become a stock item and if it is found necessary, it should be entered in the price List for the Group. 738. Placing of Purchase Orders.�Generally, firms should be instructed to deliver materials to the assigned depots as far as possible. But heavy plant and machinery should in all cases be delivered direct to indentors. Purchase Order Forms (S.714), printed on coloured paper should be used for non-stock items. Copies of the purchase order should be endorsed to all concerned, including the following :� One copy to the firm, one copy to the Accounts Officer, one copy to the indentor, one copy to the nominated Inspecting Agency if inspection is to be carried out at firms premises prior to despatch and one copy for office record. When deliveries are to be made to an Inspection Depot, one additional copy of the Purchase Order should be prepared for the use of that Depot The number and date of the Purchase Order and name of the Firms should be entered on the Requisition Register (S. 1307) prior to the despatch of the Purchase Order. 739. Procedure for payment of supplier's bills in respect of direct delivery orders.� (a) In cases where the payment is made by the Indentor's Accounts Officer.�The supplying firms will submit one copy of the bill marked 'Original' and the railway receipt for the consignment directly to the consignee. Another copy of the bill marked "Duplicate, not for payment" shall be submitted to the Controlling Officer of the consignee. The Controlling Officer will maintain a consignee wise register of such bills and watch the return of the original copy of the bill from the consignee. The consignee after verifying the stores received by him with the relevant Acceptance of Tender/Supply Order/Purchases Order of which a copy would have been furnished to him will endorse a certificate for the quality and quantity received by him and forward the original bill to the Controlling Officer mentioning therein that the receipt has been entered in his numerical ledger and the entry initialed. Any discrepancy in quality or quantity of the stores received by him or the quantity rejected by him, shall be advised to the firm direct, endorsing a copy of his advice to the Controlling Officer and the Purchase Officer. The Controlling Officer on receipt of the original copy of the bill, will countersign and forward the same to the Accounts Officer for payment. Any entry to this effect should be made in the register mentioned above. The firm's bills should be paid promptly and as far as possible within two months from the date of despatch of the stores and in case the consignment is lost in transit, the consignee should inform the consignor that a claim within the prescribed period should be preferred. In case of unusual delay, the suppliers should be advised to bring the matter to the notice of the Divisional Superintendent or the Administrative Officer of the Department concerned, for which purpose the authority to be addressed should be clearly indicated in the Acceptance of Tender/Supply Order/ Purchase Order. (b) In cases where the. payment is made by the Stores Accounts Officer.�The procedure prescribed above should be applied, mutatis mutandis, except that the Controlling Officer will forward the original copy of the bill, duly accepted, to the Stores Accounts Officer instead of to the Indenter's Accounts Officer. (c) Where 90 per cent payments are made to firms against proof of despatch after inspection, the original Railway Receipt should be sent to the Accounts Officer responsible for payment along with 90 per cent bill advising the particulars of despatch to the consignees. The Accounts Officer after passing the 90 per cent bill should pass on the original Railway Receipt to the Consignee for taking delivery of the consignments. It should, however, be ensured that there is no delay in the Accounts Office in transmitting the original R/R to the consignee. The; procedure for the payment of the 10 per cent bill will be as described above. Note.�In the case of direct delivery stores chargeable to Works, Receipt Notes should be prepared by the Consignee in triplicate in form S. 739. One copy of the Receipt Note should be sent to the concerned Accounts Officer and anotherto the Executive Officer maintaining the Works Registers in terms of paragraph 1440 (A)-E and 1440 (B) E. Form No. S. 739 Receipt Note Form No. To The Stores Accounts Officer, ---------------------------- Railway's Purchase Order No..................................................., dated.....................the under mentioned articles supplied by M/s....................................have been received by the undersigned:� Class & P.L. No. Particulars of articles Quantity Quantity in Words Quantity reed Value --------------------------------------- -- Signature of Railway Receiving Stores Officer *Prepared on the basis of Part II receiving stores of Form S-719-S.