Process of E procurement in brief - Ganjikashmira/kashmiraG GitHub Wiki

28 steps of the complete process of e-procurement is explained in detail:

1.The receipt of approved indent: The detailed requirements documents are created based on the material code, part number, Item code, its description, quantity required. These requirements are approved and consolidated documents are to be transferred to the materials department.

2.Form a Tender Committee: This is the manual process. A tender committee is formed to recommend the changes from standard/previous approved Technical Evaluation, Commercial Evaluation, and Price Format and special conditions. If required, PQC (Pre Qualified Conditions) is also recommended by TC.

3.Finalize BEC, PQC and special conditions: The tender committee finalizes the Bid Evaluation Criteria and Pre Qualification Conditions. Bid evaluation criteria are set for the documents consisting of both Technical and commercial are evaluated. BEC consists of a matrix which bidders need to fill the compliance with ‘yes or no and specific details’. The BEC also consists of the price format in which the bidder needs to submit the price bid. Vendor should submit the compliance of PQC before obtaining the tender document. The bid evaluation is done based on these criteria.

4.TC recommendations and approval: The documents should be approved by the TC committee; A status profile will be assigned to the documents folders, the dealing officer send a notification to the approvers from the folder containing the tender documents. If the approver needs the clarification, he sends back for further clarifications with the comments.

5.Prepare a tender document: The tender document is prepared with all requirements/ specifications, standard conditions which include the appendices of materials management manual and special conditions and BEC. Tender fee amount, EMD amount, last date for submission of tender, pre bid meeting dates etc are mentioned. The approved tender documents are digitally signed and uploaded by the dealing officer. The following documents will be uploaded • Instructions to the vendors • Standard conditions and other appendices • Special conditions • Bid Evaluation criteria • Technical commercial evaluation bid • Specifications The vendor fills his inputs in the respective columns using service provider MSTC. A bid invitation is created with reference to the indent.

6.Publish Notice inviting Tenders (NIT): NIT is published in leading newspapers global or local depending upon the type of bid. The NIT along with the tender document is placed in NMDC website. ( All prospective vendors can logon with their user id to MSTC- NMDC and view the tender documents. If the prospective vendor wants to participate in bidding process they can go for “Vendor Access Authorization for E-tendering”.

7.Receive Tender fees and PQC compliance from bidders: The prospective bidders need to submit DD/Pay Order for the tender fee. In cases where PQC is required, bidders have to certify that they comply with PQC.

8.Receipt of queries from bidders: This step is optional. Generally this step is common in large and complex requirements. Bidders might need some clarifications and hence can access and upload the query documents up to a specified time.

9.Forward queries to all concerned and form a suitable reply: Queries are forwarded from bidders to Tender Committee and all other departments who are concerned people in the organization (Technical, Finance, Materials). The response is collated and suitable replies are framed for all queries. All the concerned users and bidders can view the queries and their replies.

10.Pre Bid Meeting: This step is optional. A Pre bid meeting is held on a pre determined date to clarify all the queries of prospective bidders.

11.Modify tender documents: The modifications to the tender documents if any required, are deliberated by the tender committee and approved. The modified tender documents needs to be circulated to all the bidders. Bid invitation is modified if required. Last date of submission may also be modified. An email is sent to all bidders informing the modifications.

12.Receive bids/ EMD: Vendors submit techno commercial bids and price bids in separate sealed covers. When the venders submit the bids nobody is allowed to open the documents till the pre determined tender opening date and time. Also while opening the techno commercial bids, price should not be open to anybody. Prices should be open only after the pre determined price bid date and time. EMD may be received in the form of a Bank Guarantee or DD/PO. EMD will be forwarded to financial accounting department.

13.Bids: Vendor shall submit the tender documents (technical & commercial) without price; it shall be uploaded after DSC signing. Bidders can submit complete lists, appendices, and any other documents till the last date of submission given in the NIT. Price details shall be uploaded in the documents in the price bid. Accordingly the provision for DSC is required on bid submission to be verified upon tender opening. Bidders would be allowed to submit the following documents prior to the last date of unpriced bid opening. The documents required in physical form are • Tender fee in foreign currency (if applicable) • Bid bond in original • Any other certificates/documents required in original are certified as per tender requirement (if mandatory) The documents which can be submitted either in e-form or manual form are • Annual report • Supporting documents of past experience required for PQC • Technical Catalogues • Any additional information or documents which bidder wants to furnish

14.Open techno Commercial bids: On the pre determined date and time of technical commercial bid opening. The opening of bids must be done in the presence of at least two members of Tender Scrutiny committee.

15.Preparation of CST: The technical comparative statement is prepared and is gone for evaluation and to be signed by the TSC (Tender Scrutiny committee). The data sheet of Comparative statement, gives an Excel based report of all technical values filled by bidders.

16.Forward bids to all concerned for technical/commercial evaluation and obtain comments with approval: The technical bidding documents are printed and taken for approval by TSC. The concerned officer shall approve the comments and return the documents. This is the internal process and shall not be shared with bidders. Similarly the dealing officer is also verifies the commercial documents and shall prepare an evaluation document which is vetted by finance officer.

17.TSC meeting for confirmations and approval: The comments are received and a TSC meeting is conducted to prepare for the short listing of the bidders or to seek further clarifications form the bidders (Optional). And the bidders should submit their clarifications before the last date and time. Bidders clarifications are compiled and consolidated documents are sent to the dealing officer informing the receipt of clarifications from bidders.

18.TSC meeting for short listing the bidders and approval: This step is similar to step 17, the final bidders who are qualified in Techno Commercial bid is short listed and Approved by Chief – materials department and all concerned officers. The price bids of these shortlisted bidders will be opened.

19.Intimation of Price bid opening date and time: The price bids opening date is informed to all bidders who are short listed and it is extended if required and is informed well in advance.

20.Opening of Price Bids: The opening of price bids of short listed bidders will be opened in the presence of dealing officers. The comparative statement is prepared and signed by officers in materials department and finance department. The price comparative statement is prepared automatically in MSTC. Landed cost is determined in the comparative statement for each item. Ranking for each item or group of items is done. Comparisons are made to determine L-1 rates (evaluated least rate) with respect to LPR (Last Purchase Rate).

21.TSC meeting and approval: The meeting is conducted and recommendations documents are prepared and signed by the TSC members and approved by the concerned officers form Materials department and finance departments.

22.Negotiations with L-1: This step is optional. In case if the price for the same order is varied with lot of difference with LPR then the negotiations are made with L-1 bidder to reduce the price. Or the same order can be distributed between more than one bidder. In such cases who ever quote for lower prices those items of same order will be distributed to the concerned bidders. In such cases negotiations with other bidders (say L-2, L-3) other than L-1 is done. Price may be changed as a result of negotiations.

23.Reverse Auctioning: This step is undergone when there is more competition among the vendors to take up the contract for certain materials. Based on the bid decrements and L-1 price, the start bid price is declared. The purchaser (NMDC) conducts the auction. The process is continued till the lowest bid is received for a specific set time period. The purchaser and sellers are present on the web and each participant can see the bids given by others.

24.Proposal for successful bidder: Successful bidder is decided based on the ranking in comparative statement or to the L-1 bidder based on the negotiation or the lowest price received on reverse auction. Sometimes multiple bidders are declared as L-1 bidder.

25.TSC meeting for the award of contract: A formal TSC meeting is conducted and decides to award the contact to successful bidder(s) after finalizing with the contract terms and conditions. The proposal is approved by the concerned authorities.

26.Issue of LOI to the successful bidders: Letter of Issue or letter of Authority is submitted to the successful bidder(s). Then a PO is created based on the acceptance.

27.Release of EMD to unsuccessful bidders: The EMD’s are released to the unsuccessful bidders.

28.Prepare a PO/contract: The PO is prepared based on the successful bid and is signed by the concerned authorities and transmitted to the vendor.

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